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SimCorp Interim / Quarterly Report 2016
3384_rns_2016-08-26_acc3e2c4-76a0-4ef7-8e52-88e4b7d2ff8f.pdf
Interim / Quarterly Report
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SimCorp
SimCorp A/S
Weidekampsgade 16
2300 Copenhagen S
Denmark
Telephone: +45 35 44 88 00
Telefax: +45 35 44 88 11
E-mail: [email protected]
www.simcorp.com
Company reg. no: 15 50 52 81
Company Announcement no. 32/2016
26 August 2016
Company Announcement
Interim Report for H1 2016: Record High Order Book
Summary
H1 2016 reported revenue was EUR 128.1m, an increase of 2.9% and an increase of 5.1% when measured in local currencies compared with H1 2015.
H1 2016 adjusted non-GAAP¹ revenue was EUR 132.7m, an increase of 6.6% and an increase of 8.8% when measured in local currencies.
New SimCorp Dimension orders signed in H1 based on subscription licensing terms have contributed to the 11% growth in the order book, valued at EUR 32.4m as of 30 June 2016.
At 30 June 2016, EUR 232m of the projected 2016 revenue had been contractually secured, EUR 6m more than at the same point in time last year.
SimCorp maintains its expectations for reported revenue growth and EBIT margin measured in local currency for 2016. Revenue growth measured in local currencies is still expected to be between 3% and 8%, and the expectation for EBIT margin measured in local currencies remains between 21% and 24%. SimCorp maintains its expectations for the adjusted non-GAAP revenue growth in local currencies to be between 8% and 15% and the expectation for adjusted non-GAAP EBIT margin measured in local currencies to be between 24% and 28%.
Klaus Holse, SimCorp CEO comments: "With a satisfactory H1 order intake in line with expectations our order book stands at all time high. The underlying business activity in our markets remains high leading to an 11% increase in professional services revenue and we continue to see more opportunities coming to market."
¹ As of 2016 SimCorp predominantly offer SimCorp Dimension to new customers on subscription based licensing terms as opposed to the historically used perpetual based licensing terms. Adjusted non-GAAP figures are presented as if the SimCorp Dimension orders were still made on perpetual license terms and consequently income recognized when signed.
Page 1 of 22
Company Announcement
Interim report for H1 2016: Record high order book
SimCorp's Board of Directors today considered and approved the Group's interim report for the six months ended 30 June 2016. Highlights of the report are:
- H1 order intake from new licenses and add-on licenses was EUR 24.8m compared with EUR 31m in H1 2015. Q2 order intake was EUR 13.9m compared with EUR 17.9m in Q2 2015. The order book increased by EUR 3.4m during the quarter, and amounted to EUR 32.4m at 30 June 2016, compared with EUR 29.2m at June 2015. Page 5
- Reported revenue for H1 increased 2.9% y/y to EUR 128.1m and 5.1% y/y in local currencies. Q2 reported revenue increased 0.7% to EUR 68.5m and 3.7% y/y in local currencies. Page 6
- H1 2016 adjusted non-GAAP revenue increased 6.6% y/y in EUR and yielded 132.7m. In local currencies the increase was 8.8%. Q2 2016 adjusted non-GAAP revenue increased 0.5% y/y in EUR and yielded 68.4m. In local currencies the increase was 3.4%. Page 6
- H1 2016 recurring revenue was EUR 78.6m compared with EUR 76.2m in the same period of 2015. Currency fluctuations impacted this negatively by EUR 1.4m. Q2 2016 recurring revenue was EUR 40.9m compared with EUR 39.7m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 1.0m. Page 7
- H1 2016 non-recurring revenue was EUR 49.5m compared with EUR 48.3m in the same period of 2015. Currency fluctuations impacted this negatively by EUR 1.4m. Q2 2016 non-recurring revenue was EUR 27.6m compared with EUR 28.3m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 1.0m. Page 7
- Total cost for the six months was EUR 108.8m, an increase of 7.5% compared with the same period in 2015, currency fluctuations reduced costs by EUR 1.5m (1.5%-points). In Q2 total cost was EUR 54.9m, an increase of 7.0% on the same period last year, of which currency fluctuations reduced costs by EUR 0.8m (1.6%-points). Page 8
- H1 2016 EBIT was EUR 19.5m compared with EUR 22.2m for the same period last year. Currency fluctuations impacted H1 EBIT negatively by EUR 1.2m. Q2 EBIT was EUR 13.7m compared with EUR 16.7m in Q2 last year. Currency fluctuations impacted Q2 EBIT negatively by EUR 0.9m. Page 10
- H1 2016 EBIT margin was 15.2% compared to 18.7% the year before. Q2 2016 EBIT margin was 19.9% compared to 24.6% the year before. Page 10
- H1 2016 adjusted non-GAAP EBIT increased by 3.5% to EUR 24.1m and adjusted non-GAAP EBIT for Q2 2016 was EUR 13.5m compared with EUR 16.7m in Q2 2015. Page 10
- H1 2016 adjusted non-GAAP EBIT margin was 18.2% compared to 18.7% the year before. Q2 2016 adjusted non-GAAP EBIT margin was 19.7% compared to 24.6% the year before. Page 10
- The H1 cash flow from operating activities before financial items was EUR 32.3m compared with EUR 21.5m in the same period of 2015. In Q2 cash flow from operating activities before financial items was EUR 10.8m compared with EUR 7.5m in the same period of 2015. Page 11
- SimCorp maintains its expectations for full-year revenue growth measured in local currencies of 3-8% and an EBIT margin measured in local currencies of between 21% and 24%. Expectations for adjusted non-GAAP revenue growth in local currency is maintained between 8% and 15% and the expectation for adjusted non-GAAP EBIT margin measured in local currencies is
Page 2 of 22
Company Announcement
Interim report for H1 2016: Record high order book
maintained between 24% and 28%. Based on currency rates prevailing at the end of July 2016, SimCorp expects a negative impact from currency fluctuations on full-year revenue growth of around 2% (unchanged) and a negative currency impact on EBIT margin of around 0.2% (unchanged). Page 12
- At 30 June 2016, EUR 232m of the projected 2016 revenue had been contractually secured, EUR 6m more than at the same time last year. The Group's pipeline of potential license contracts supports the expected revenue growth. Page 12
Investor meeting
SimCorp's Executive Management Board will present this interim report at a conference call from New York Friday the same day at 2:00 PM (CEST). Please use any of the following phone numbers to dial in to the conference call. The pin code to access the call is 5422069#. At the end of the presentation it will be possible to ask questions.
From Denmark: +45 3271 1659
From USA: +1 646 254 3365
From other countries: +44 (0)20 3427 1904
It will also be possible to follow the presentation via this link:
http://edge.media-server.com/m/p/u5aq6hyr.
The presentation will be available just prior to the conference call via SimCorp's website www.simcorp.com.
Enquiries regarding this announcement should be addressed to:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000) or
Thomas Johansen, Chief Financial Officer, SimCorp A/S (+45 3544 6858, +45 2811 3828)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)
Company Announcement no. 32/2016
Page 3 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Financial highlights and key ratios for the SimCorp Group
| | 2016
Q2 | 2015
Q2 | 2016
H1 | 2015
H1 | 2015
FY |
| --- | --- | --- | --- | --- | --- |
| EUR/DKK rate of exchange end of period | 7.4393 | 7.4604 | 7.4393 | 7.4604 | 7.4625 |
| Income statement, EUR'000 | | | | | |
| Revenue | 68,538 | 68,021 | 128,146 | 124,509 | 277,927 |
| Earnings bef. interest, tax, depreciation and amortization (EBITDA) | 14,481 | 17,437 | 21,160 | 24,784 | 74,227 |
| Operating profit (EBIT) | 13,652 | 16,705 | 19,518 | 23,302 | 71,038 |
| Financial items, net | -4 | -397 | 47 | -1,114 | -1,938 |
| Profit before tax | 13,648 | 16,308 | 19,565 | 22,188 | 69,100 |
| Profit for the period | 10,088 | 12,550 | 14,601 | 16,849 | 52,584 |
| Balance sheet, EUR'000 | | | | | |
| Share capital | 5,575 | 5,575 | 5,575 | 5,575 | 5,575 |
| Equity | 62,185 | 64,689 | 62,185 | 64,689 | 89,820 |
| Property, plant and equipment | 4,486 | 4,757 | 4,486 | 4,757 | 4,333 |
| Cash and cash equivalents | 29,912 | 24,672 | 29,912 | 24,672 | 43,344 |
| Total assets | 126,085 | 122,333 | 126,085 | 122,333 | 149,529 |
| Cash flows, EUR'000 | | | | | |
| Cash flow from operating activities | 10,765 | 7,480 | 32,307 | 21,483 | 54,206 |
| Cash flow from investing activities | -864 | -1,156 | -1,129 | -1,339 | -2,625 |
| Cash flow from financing activities | -40,140 | -8,542 | -44,487 | -33,865 | -46,422 |
| Net change in cash and cash equivalents | -30,239 | -2,218 | -13,309 | -13,721 | 5,159 |
| Average number of employees | 1,260 | 1,208 | 1,251 | 1,195 | 1,205 |
| Key ratios | | | | | |
| EBIT margin (%) | 19.9 | 24.6 | 15.2 | 18.7 | 25.6 |
| ROIC (return on invested capital) (%) | 97.2 | 155.2 | 68.2 | 105.1 | 136.0 |
| Debtor turnover rate | 8.0 | 7.6 | 7.5 | 6.9 | 8.1 |
| Equity ratio (%) | 49.3 | 52.9 | 49.3 | 52.9 | 60.1 |
| Return on equity (%) | 52.7 | 84.4 | 34.9 | 45.2 | 60.2 |
| Per share data | | | | | |
| Basic earnings per share - EPS (EUR) | 0.25 | 0.31 | 0.36 | 0.42 | 1.31 |
| Diluted earnings per share - EPS-D (EUR) | 0.25 | 0.31 | 0.36 | 0.41 | 1.29 |
| Operating cash flow per share - CFPS (EUR) | 0.27 | 0.19 | 0.80 | 0.53 | 1.35 |
| Average number of shares (m) | 40.2 | 40.3 | 40.2 | 40.4 | 40.2 |
| Average number of diluted shares (m) | 40.8 | 40.9 | 40.7 | 41.1 | 40.9 |
| | 2016
Q2 | 2015
Q2 | 2016
H1 | 2015
H1 | 2015
FY |
| Adjusted non-GAAP statement, EUR'000 | | | | | |
| Adjusted non-GAAP revenue | 68,382 | 68,021 | 132,748 | 124,509 | 277,927 |
| Adjusted non-GAAP profit from operations (EBIT) | 13,496 | 16,705 | 24,120 | 23,302 | 71,038 |
| Adjusted non-GAAP EBIT margin (%) | 19.7 | 24.6 | 18.2 | 18.7 | 25.6 |
The key ratios have been calculated in accordance with IAS 33 and "Recommendations and Ratios 2015" issued by the Danish Finance Society. Please refer to the definition of ratios on page 60 of the Annual Report 2015. The interim report is unaudited and has not been reviewed by external auditors.
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Company Announcement
Interim report for H1 2016: Record high order book
Management's report – six months ended 30 June 2016
Development in sales and orders
One new SimCorp Dimension license contract was signed in Q2 2016 in France on perpetual terms and one new Coric subscription contract in the UK was also signed – bringing the number of new contracts signed in the first half of 2016 to a total of 6 including two SimCorp Coric contracts. Additionally, two large add-on SimCorp Dimension license contracts were signed in Q2 – one in the Middle East and one in Luxemburg – and further one Coric subscription contract was renewed in the US market.
H1 order intake was EUR 24.8m compared with EUR 31m in the same period last year which was impacted positively by a few very large new SimCorp Dimension license contracts. Q2 order intake was EUR 13.9m, compared with EUR 17.9m in Q2 2015.
The order book increased by EUR 8.3m in the first six months, representing the difference between actual order intake and income recognized from software licenses adjusted for the effect of exchange rate changes. The order book stood at EUR 32.4m at 30 June 2016, EUR 3.4m more than at the end of Q1 driven by signed Coric license deals, SimCorp Dimension additional license deals on perpetual terms with acceptance criteria and SimCorp Dimension additional license deals on subscription terms.
SimCorp licenses, quarterly order intake and order book
(aggregate new subscription licenses, perpetual new licenses and add-on licenses)*, 2015-2016
*) Order intake and order book include licenses to new clients as well as add-on licenses to existing clients. The order book is the total license value of signed license agreements that has not yet been recognized in income.
Page 5 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Revenue
H1 revenue in reported currency was EUR 128.1m - up 2.9% relative to H1 2015. Measured in local currencies the increase was 5.1%.
H1 2016 income recognized from subscription based licenses and from perpetual new licenses and add-on licenses totaled EUR 17.7m, EUR 3.6m lower than H1 2015 and in Q2 2016 income recognized from subscription based licenses and from perpetual new licenses and add-on licenses totaled EUR 11.2m, EUR 4.3m lower than Q2 2015. The decrease compared to last year was mainly driven by lower revenue recognized from perpetual license sales which were positively impacted by a small number of large new SimCorp Dimension license contracts signed in Q2 2015.
H1 adjusted non-GAAP revenue was EUR 132,7m, after the adjustment of EUR 4.6m for the impact of selling SimCorp Dimension licenses as subscription based contracts instead of as perpetual licenses – an increase of 6.6% relative to reported revenue in H1 2015. Measured in local currencies the increase was 8.8%.
Q2 revenue in reported currency was EUR 68.5m, 0.7% higher than Q2 2015. Measured in local currencies the increase was 3.7%. Q2 adjusted non-GAAP revenue was, after adjustment for the impact of selling SimCorp Dimension new licenses as subscription based contracts instead of as perpetual licenses, EUR 68.4m up 0.5% relative to reported revenue in Q2 2015. Measured in local currencies the increase was 3.4%.
The distribution of H1 and Q2 revenue is shown in the tables below:
Page 6 of 22
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Company Announcement
Interim report for H1 2016: Record high order book
| EURm | Revenue H1 2016 | Share of revenue H1 2016 | Revenue H1 2015 | Share of revenue H1 2015 | Growth relative to H1 2015 | Growth local currency relative to H1 2015 |
|---|---|---|---|---|---|---|
| Recurring Revenue | ||||||
| Subscription - new sales | 3.3 | 2.6 % | 3.0 | 2.4% | 12.0% | 15.0% |
| Subscription - additional sales | 2.0 | 1.6 % | 0.8 | 0.6% | 153.5% | 162.3% |
| Professional services* | 10.7 | 8.4 % | 12.7 | 10.2% | -15.5% | -13.7% |
| Maintenance | 61.8 | 48.2 % | 59.5 | 47.8% | 3.8% | 5.7% |
| Hosting and other | 0.7 | 0.7 % | 0.2 | 0.2% | 264.4% | 270.8% |
| Total recurring revenue | 78.6 | 61.3 % | 76.2 | 61.2% | 3.1% | 5.0% |
| Non-Recurring Revenue | ||||||
| Perpetual licences - new sales | 1.5 | 1.2 % | 6.5 | 5.2% | -76.2% | -75.9% |
| Perpetual licences - additional sales | 10.9 | 8.5 % | 11.0 | 8.8% | -0.5% | 3.2% |
| Professional services** | 35.0 | 27.3 % | 28.7 | 23.0% | 22.1% | 24.8% |
| Other | 2.1 | 1.7 % | 2.2 | 1.8% | -5.1% | -3.6% |
| Total non-recurring revenue | 49.6 | 38.7 % | 48.3 | 38.8% | 2.7% | 5.3% |
| Total revenue | 128.1 | 100.0 % | 124.5 | 100.0% | 2.9% | 5.1% |
| Adjusted non-GAAP | ||||||
| Subscription - new sales - order*** | 4.6 | |||||
| Adjusted non-GAAP revenue | 132.7 | 124.5 | 6.5% | 8.8% |
- Ongoing support and services ** Implementation services related to the initial and add-on license sales
*** See page 6
| EURm | Revenue Q2 2016 | Share of revenue Q2 2016 | Revenue Q2 2015 | Share of revenue Q2 2015 | Growth relative to Q2 2015 | Growth local currency relative to Q2 2015 |
|---|---|---|---|---|---|---|
| Recurring Revenue | ||||||
| Subscription - new sales | 1.6 | 2.3 % | 1.6 | 2.3% | -1.3% | 10.1% |
| Subscription - additional sales | 1.0 | 1.5 % | 0.5* | 0.7% | 128.6% | 140.2% |
| Professional services * | 6.5 | 9.5 % | 7.4 | 10.9% | -11.6% | -9.2% |
| Maintenance | 31.2 | 45.5 % | 30.1 | 44.2% | 3.7% | 6.2% |
| Hosting and other | 0.5 | 0.8 % | 0.1 | 0.2% | 363.1% | 373.4% |
| Total recurring revenue | 40.9 | 59.7 % | 39.7 | 58.2% | 3.0% | 5.7% |
| Non-Recurring Revenue | ||||||
| Perpetual licences - new sales | 0.6 | 0.9 % | 4.2 | 6.1% | -84.5% | -84.5% |
| Perpetual licences - additional sales | 8.0 | 11.6 % | 9.2 | 13.5% | -13.1% | -9.0% |
| Professional services ** | 18.0 | 26.2 % | 14.0 | 20.6% | 28.0% | 32.2% |
| Other | 1.0 | 1.4 % | 0.9 | 1.3% | 8.3% | 10.8% |
| Total non-recurring revenue | 27.6 | 40.3 % | 28.3 | 41.6% | -2.5% | 0.6% |
| Total revenue | 68.5 | 100.0 % | 68.0 | 100.0% | 0.7% | 3.6% |
Adjusted non-GAAP
Subscription - new sales - adj. Order *** (0.1)
| Adjusted non-GAAP revenue | 68.4 | 68.0 | 0.5% | 3.4% |
|---|---|---|---|---|
- Ongoing support and services ** Implementation services related to the initial and add-on license sales
*** See page 6
H1 2016 recurring revenue was EUR 78.6m, an increase of 3.1% y/y. Measured in local currencies the increase was 5.0%. Recurring revenue in Q2 2016 was up by 3.0% to EUR 40.9m. Measured in local currencies the increase was 5.7%. The increase in recurring revenue is mainly related to higher maintenance revenue that continues to increase with the completion of client installations which was offset by a reduction in recurring revenue from professional services as some resources were shifted towards implementation projects.
Company Announcement
Interim report for H1 2016: Record high order book
In H1 2016 non-recurring revenue totaled EUR 49.6m, an increase of 2.7% y/y. Measured in local currencies the increase was 5.3%. Non-recurring revenue in Q2 2016 was EUR 27.6m, down by 2.5%. Measured in local currencies non-recurring revenue increased by 0.6%. The increase is related to higher professional services revenue from implementation of new client installations and new functionality to existing clients.
Costs
SimCorp's total operating expenses (including depreciation and amortization) in the first six months of 2016 were EUR 108.8m compared with EUR 101.2m, an increase of 7.5% relative to the same period last year. Currency fluctuations reduced total expenses by EUR 1.5m (0.6%-points).
The increase in costs is related to building capacity for the anticipated full year increase in the business activity which has led to a 5% increase in the average number of employees from 1,195 in H1 2015 to 1,251 in H1 2016. Further more costs related to external implementation consultants has increased in the first six months compared to 2015 driven by a significantly higher business activity level.
The average number of employees in the cost of sales category increased with 37 and are primarily additional professional service implementation consultants in France and the UK. The average number of employees in the research and development category increased with 15. Further, expenses has increased due to the annual general salary increase by around 2%.
Salaries and other staff-related expenses including performance related costs and bonuses accounted for around 73% of total costs compared with 76% in H1 2016.
The total operating expenses (including depreciation and amortization) in Q2 were EUR 54.9m, an increase of EUR 3.6m or 7.0% compared with Q2 2015. Currency fluctuations reduced total expenses with EUR 0.8m (1.6%-points).
Costs
The distribution of H1 and Q2 costs is shown in the tables below:
Page 8 of 22
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Company Announcement
Interim report for H1 2016: Record high order book
| EURm | Costs H1 2016 | Share of costs H1 2016 | Costs H1 2015 | Share of costs H1 2015 | Growth relative to H1 2015 | Growth local currency relative to H1 2015 |
|---|---|---|---|---|---|---|
| Cost of sales | 53.8 | 49.4 % | 48.7 | 48.1 % | 10.3% | 12.5% |
| Research and development costs | 29.1 | 26.7 % | 27.2 | 26.9 % | 6.8% | 7.6% |
| Sales and distribution costs | 16.9 | 15.6 % | 16.5 | 16.3 % | 2.6% | 4.2% |
| Administrative expenses | 9.0 | 8.3 % | 8.8 | 8.7 % | 2.7% | 2.6% |
| Total | 108.8 | 100.0 % | 101.2 | 100.0 % | 7.5% | 9.0% |
| EURm | Costs Q2 2016 | Share of costs Q2 2016 | Costs Q2 2015 | Share of costs Q2 2015 | Growth relative to Q2 2015 | Growth local currency relative to Q2 2015 |
| --- | --- | --- | --- | --- | --- | --- |
| Cost of sales | 27.1 | 49.3 % | 24.3 | 47.4% | 11.5% | 14.5% |
| Research and development costs | 14.8 | 26.9 % | 13.8 | 26.9% | 7.1% | 6.1% |
| Sales and distribution costs | 8.6 | 15.7 % | 8.9 | 17.4% | -3.7% | -0.8% |
| Administrative expenses | 4.4 | 8.1 % | 4.3 | 8.4% | 2.9% | 2.5% |
| Total | 54.9 | 100.0 % | 51.3 | 100.0% | 7.0% | 8.6% |
Cost of sales, including expenses related to implementation consultants, increased in H1 2016 by EUR 5.1m or 10.3%. In Q2 cost of sales increased EUR 2.8m or 11.5%. The increase was primary related to the addition of 37 FTE's compared to H1 2015 and due to the annual general salary increase.
Compared with H1, research and development costs increased 6.8% and in Q2 the increase was 7.1%. The increase was related to the addition of 15 FTE's compared to H1 2015 and the annual general salary increase.
Sales and marketing costs were up 2.6% for H1 and decreased by 3.7% in Q2. The decrease is related to lower sales commissions reflecting the lower level of new orders signed in H1 2016 compared with H1 2015.
Administrative expenses increased by EUR 0.2m in H1 and were up EUR 0.1m in Q2.
Employees
At 30 June 2016 the Group had 1,324 employees, 66 more than 30 June 2015.
The Group had on average 1,251 full time equivalent employees for the first six months of 2016, compared with 1,195 for the same period last year.
Company Announcement
Interim report for H1 2016: Record high order book
Group performance
For H1 2016, the Group posted EBIT of EUR 19.5m compared with EUR 23.3m in the same period of 2015. Currency rate fluctuations reduced EBIT by EUR 1.2m for the first six months of the year. EBIT margins were 15.2% compared to 18.7% for the first six months in 2015. Measured in local currencies EBIT margin for H1 2016 was 15.8%.
Adjusted non-GAAP EBIT for H1 2016 increased by 3.5% to EUR 24.1m reflecting the impact of SimCorp Dimension software license agreements being made on subscription based terms rather than perpetual. Adjusted non-GAAP EBIT margin for H1 measured in local currencies was 18.6%.
Q2 EBIT was EUR 13.7m against EUR 16.7m in Q2 last year. Currency rate fluctuations reduced EBIT by EUR 0.9m. Adjusted non-GAAP EBIT for Q2 2016 was EUR 13.5m compared with EUR 16.7m in the same period of 2015.
Profit before tax
In H1 2016, foreign exchange adjustments generated financial income of EUR 1.6m and financial expenses related to foreign exchange adjustments totaled to EUR 1.5m. Financial items for H1 2016 thus netted to an income of EUR 0.1m compared with net expense of EUR 1.1m in H1 2015 and for Q2 2016 financial income and expenses netted out compared with net expenses of EUR 0.4m in same period last year.
For the first six months the Group posted a pre-tax profit of EUR 19.6m, against EUR 22.2m in H1 2015. The estimated tax charge was EUR 5.0m equivalent to a tax rate of 25.4% against 24.1% in H1 2015. The Group's net profit for the first six months was EUR 14.6m, against a net profit of EUR 16.8m in the same period last year.
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Company Announcement
Interim report for H1 2016: Record high order book
For Q2 2016 the Group realized a pre-tax profit of EUR 13.6m, against EUR 16.3m in Q2 2015 and net profit of EUR 10.1m compared with EUR 12.6m in the same quarter last year.
Comprehensive income
Exchange rate adjustments on translation of the Group's foreign assets and liabilities amounted to a net expense of EUR 1,5m in H1 compared with a net income of EUR 3.5m in the same period last year. This is primarily attributed to the decrease in the exchange rates for GBP and USD compared with DKK and EUR.
Total comprehensive income for H1 was thus a net profit EUR 13.1m against net profit EUR 20.3m in the same period last year and for Q2 the total comprehensive income was a profit of EUR 9.7m, against EUR 12.3m in the same quarter last year.
Balance sheet items and cash flow
SimCorp's total assets were EUR 126.1m at 30 June 2016, of which cash holdings amounted to EUR 29.9m, EUR 5.2m more than a year earlier. Total receivables amounted to EUR 61.2m at 30 June 2016, an increase with EUR 1.7m compared with the same period last year but a decrease of EUR 6.9m compared with 31 December 2015.
Operating activities generated a cash inflow of EUR 32.3m in H1 against EUR 21.5m in the same period last year. Payment of on account corporate income tax was EUR 2.5m against EUR 10.5m in the same period last year. The lower amount of income taxes paid relates primary to lower prepayment of income taxes for the parent company.
EUR 1.1m was spent on investing activities in H1 compared with EUR 1.3m in H1 2015.
Financial activities generated a net cash outflow of EUR 44.5m in H1 against EUR 33.9m in the same period last year. Payment of dividend reduced liquidity by EUR 28.4m (2015: EUR 24.5m) and purchase of treasury shares reduced liquidity by EUR 16.1m (2015: EUR 8.7m), including EUR 11.7m purchased in Q2 (2015: EUR 3.5m).
Changes in equity
The Group's equity amounted to EUR 62.2m at 30 June 2016. This was a reduction of EUR 27.6m from 31 December 2015. Payment of dividends to shareholders of EUR 28.4m and purchase of treasury shares of EUR 16.1m reduced equity. Comprehensive income for the period of EUR 13.1m as well as adjustments to share based remuneration of EUR 3.8m increased equity.
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Company Announcement
Interim report for H1 2016: Record high order book
Outlook for the financial year 2016*)
SimCorp generated a satisfactory financial result in the first half of 2016 in line with SimCorp's own expectations. SimCorp's intake of license contract orders varies considerably from one period to the next. The H1 2016 intake of orders was EUR 24.8m compared with EUR 31.0m for the same period last year.
During Q2 contracts impacting the 2016 full year revenue by EUR 13.9m were secured, against EUR 17.9m in the same period last year. SimCorp enters Q3 with secured revenue for EUR 232m of the revenue projected for 2016, EUR 6m more than at the same time last year. In addition SimCorp has during Q3 signed two new SimCorp Dimension contracts based on perpetual terms.
SimCorp continues to experience a satisfactory, geographically diversified demand for its products and services and continues to see the value of the pipeline increase. The introduction of subscription based licensing terms for SimCorp Dimension contracts only marginally impacts reported revenue and EBIT as contracts signed towards the end of the year will only have a marginal part of the order value impacting revenue and hence EBIT.
Based on the H1 2016 performance, the performance so far in Q3 and the pipeline for the remaining part of 2016 SimCorp maintains its expectations for the full year of between 3% and 8% revenue growth measured in local currencies and an EBIT margin of between 21% to 24% measured in local currencies. For adjusted non-GAAP revenue SimCorp maintains its expectations for the full year growth measured in local currencies to be between 8% and 15% and maintains its expectation to the adjusted non-GAAP EBIT margin to be between 24% to 28% measured in local currencies.
Based on exchange rates prevailing at 31 July 2016, SimCorp expects a negative impact from currency fluctuations on revenue growth of around 2% (unchanged) and a negative impact on EBIT margin of around 0.2% (unchanged).
| FINANCIAL GUIDANCE 2016 | ||||
|---|---|---|---|---|
| All guidance given in local currency | Q2 2016 | |||
| 26-aug-16 | Q1 2016 | |||
| 10-May-16 | Annual Report 2015 | |||
| 22-feb-16 | Realized 2015 | |||
| Revenue | 3%-8% | 3%-8% | 3%-8% | 10.1% |
| Adjusted non-GAAP revenue | 8%-15% | 8%-15% | 8%-13% | |
| EBIT margin | 21%-24% | 21%-24% | 21%-24% | 24.4% |
| Adjusted non-GAAP EBIT-margin | 24%-28% | 24%-28% | 24%-27% |
*) This announcement contains certain forward-looking statements and expectations in respect of the 2016 financial year. Such forward-looking statements are not guarantees of future performance, and involve risk and uncertainty, and actual performance may deviate materially from that expressed in such forward-looking statements due to a variety of factors. Readers are warned not to rely unduly on such forward-looking statements which apply only as at the date of this announcement. The Group's revenue will continue to be impacted by relatively few but large system orders, and such orders are expected to be won at relatively irregular intervals. The terms agreed in the individual license agreements will determine the impact on the order book and on license income for any specific financial reporting period. Accordingly, license revenue is likely to vary considerably from one quarter to the next. Unless required by law or corresponding obligations SimCorp A/S is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this document, whether as a result of new information, future events or otherwise.
Page 12 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Other information
Significant risk and uncertainty factors
SimCorp operates in a dynamic and complex business environment, where performance relies heavily on the ongoing achievement of a number of success criteria. Page 24-25 of SimCorp's Annual Report 2015 describes the most important general risk factors and the risk management measures utilized in everyday operations. Management believes that the description of these potential risks still applies.
Shareholder information
A total of 534.860 restricted stock units are outstanding at 30 June 2016. These will be transferred in whole or in part between 2016 and 2019 to program participants still employed when the stock units vest and subject to the performance conditions.
Revision of Investor Relations Policy
SimCorp's Board of Directors has approved a revised Investor Relations Policy, which can be found at the Company's website (http://www.simcorp.com/en/about/investor/corporate-governance).
The change in the Investor Relation Policy, which will be effective from today, relates to section 4.1 of the Policy and entails that SimCorp going forward will send out company announcements in respect of any new order with EUR 10m in recurring fees over 5 years or if the new order is of strategic importance to SimCorp.
The change to the Investor Relations Policy is based on that with the gradual phase in of subscription based licensing in SimCorp, any given single order will have a lesser impact on the revenue of SimCorp in the year in question. Further, new orders will over time carry a relatively smaller weight of the total profit and loss statement of SimCorp and accordingly, only very larger orders will have an impact on the overall revenue and result of SimCorp.
Page 13 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Holding of treasury shares
In Q2 2016 the Company transferred a total of 2,495 treasury shares in relation to the restricted stock unit programs.
In Q2 2016 the Company acquired 259,296 treasury shares at an average price of DKK 335.76 per share, totaling EUR 11.7m. In total in H1 the Company acquired 354,612 treasury shares at an average price of DKK 336.84 per share, totaling EUR 16.1m.
At 30 June 2016, the holding of treasury shares amounted to 1,467,657 treasury shares, equal to 3.54% of the Company's issued share capital. The total purchase value was EUR 49.9m with a market value of EUR 64.6m at 30 June 2016.
| Treasury shares | Share capital | Number of Treasury shares | Acquisition value EUR'000 | Percent of share capital |
|---|---|---|---|---|
| 2016 | ||||
| At 1 January 2016 | 41,500,000 | 1,317,339 | 39,470 | 3.2 |
| Foreign exchange adjustment | 122 | - | ||
| Purchases | 354,612 | 16,056 | 0.9 | |
| Delivery of shares, share-based payment | -204,294 | -5,704 | -0.5 | |
| At 30 June 2016 | 41,500,000 | 1,467,657 | 49,944 | 3.5 |
In addition to the repurchases in H1, the Company has in Q3 acquired 191,512 treasury shares at a total price of EUR 8.7m. Under the EUR 40m "Safe Harbor" program that runs to 22 February 2017, the Company has acquired shares amounting to EUR 20.5m.
By 25 August 2016 the holding of treasury shares amounted to 1,659,169 equal to 4.0% of the Company's share capital.
Page 14 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Signatures
The Board of Directors and the Executive Management Board have today considered and adopted the interim report for the period 1 January - 30 June 2016.
The interim financial report, which is unaudited and has not been reviewed by the company's auditors, is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and Danish disclosure requirements for listed companies.
In our opinion, the interim financial report gives a true and fair view of the Group's assets, liabilities and financial position as of 30 June 2016 and of the profit of the Group's operations and cash flow for the period 1 January - 30 June 2016.
Besides what has been disclosed in the interim report, there are no significant changes to the Group's risks and uncertainties, as disclosed in the consolidated annual report 2015.
Furthermore, the management's commentary gives a fair representation of the Group's activities, financial position and description of the material risks and uncertainties which the Group is facing.
26 August 2016
Executive Management Board:
Klaus Holse
Chief Executive Officer
Georg Hetrodt
Chief Technology Officer
Thomas Johansen
Chief Financial Officer
Board of Directors:
Jesper Brandgaard
Chairman
Peter Schütze
Vice Chairman
Hervé Couturier
Simon Jeffreys
Patrice McDonald
Else Braathen
Vera Bergforth
Ulrik Elstrup Hansen
Page 15 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Consolidated income statement
| EUR'000 | 2016 Q2 | 2015 Q2 | 2016 H1 | 2015 H1 | 2015 FY |
|---|---|---|---|---|---|
| Revenue | 68,538 | 68,021 | 128,146 | 124,509 | 277,927 |
| Cost of sales | 27,084 | 24,291 | 53,760 | 48,720 | 100,086 |
| Gross profit | 41,454 | 43,730 | 74,386 | 75,789 | 177,841 |
| Other operating income | 52 | 6 | 136 | 15 | 492 |
| Research and development costs | 14,771 | 13,793 | 29,067 | 27,220 | 53,917 |
| Sales and distribution costs | 8,654 | 8,933 | 16,928 | 16,506 | 35,337 |
| Administrative expenses | 4,429 | 4,305 | 9,009 | 8,776 | 18,041 |
| Operating profit (EBIT) | 13,652 | 16,705 | 19,518 | 23,302 | 71,038 |
| Share of profit after tax in associates | 16 | 5 | 5 | 64 | 126 |
| Financial income | 733 | 119 | 1,570 | 1,116 | 1,796 |
| Financial expenses | 753 | 521 | 1,528 | 2,294 | 3,860 |
| Profit before tax | 13,648 | 16,308 | 19,565 | 22,188 | 69,100 |
| Tax on profit | 3,560 | 3,758 | 4,964 | 5,339 | 16,516 |
| Net profit for the period | 10,088 | 12,550 | 14,601 | 16,849 | 52,584 |
| Earnings per share | |||||
| Basic earnings per share - EPS (EUR) | 0.25 | 0.31 | 0.36 | 0.42 | 1.31 |
| Diluted earnings per share - EPS-D (EUR) | 0.25 | 0.31 | 0.36 | 0.41 | 1.29 |
Statement of comprehensive income
| EUR'000 | 2016 Q2 | 2015 Q2 | 2016 H1 | 2015 H1 | 2015 FY |
|---|---|---|---|---|---|
| Net profit for the period | 10,088 | 12,550 | 14,601 | 16,849 | 52,584 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to the income statement: | |||||
| Remeasurements of defined benefit pension plans | 0 | 0 | 0 | 0 | -279 |
| Tax | 0 | 0 | 0 | 0 | 49 |
| Items that will be reclassified subsequently to the income statement, when specific conditions are met: | |||||
| Foreign currency translation differences for foreign operations | -418 | -201 | -1,521 | 3,477 | 2,066 |
| Other comprehensive income after tax for the period | -418 | -201 | -1,521 | 3,477 | 1,836 |
| Total comprehensive income for the period | 9,670 | 12,349 | 13,080 | 20,326 | 54,420 |
Page 16 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Consolidated balance sheet
| EUR'000 | 2016
30 June | 2015
30 June | 2015
31 December |
| --- | --- | --- | --- |
| ASSETS | | | |
| Non-current assets | | | |
| Intangible assets | | | |
| Goodwill | 4,108 | 4,749 | 4,579 |
| Software | 3,098 | 4,079 | 3,749 |
| Client contracts | 2,989 | 3,669 | 3,442 |
| Total intangible assets | 10,195 | 12,497 | 11,770 |
| Property, plant and equipment | | | |
| Leasehold improvements | 1,617 | 1,847 | 1,700 |
| Technical equipment | 1,753 | 2,709 | 2,383 |
| Other equipment, fixtures, fittings and prepayments | 1,116 | 201 | 250 |
| Total property, plant and equipment | 4,486 | 4,757 | 4,333 |
| Other non-current assets | | | |
| Investments in associates | 630 | 400 | 628 |
| Deposits | 1,878 | 1,887 | 2,102 |
| Deferred tax | 8,545 | 8,371 | 9,078 |
| Total other non-current assets | 11,053 | 10,658 | 11,808 |
| Total non-current assets | 25,734 | 27,912 | 27,911 |
| Current assets | | | |
| Receivables | 61,230 | 59,502 | 68,144 |
| Income tax receivable | 2,148 | 3,780 | 4,276 |
| Prepayments | 7,061 | 6,467 | 5,854 |
| Cash and cash equivalents | 29,912 | 24,672 | 43,344 |
| Total current assets | 100,351 | 94,421 | 121,618 |
| Total assets | 126,085 | 122,333 | 149,529 |
| LIABILITIES AND EQUITY | | | |
| Equity | | | |
| Share capital | 5,575 | 5,575 | 5,575 |
| Exchange adjustment reserve | -510 | 2,422 | 1,011 |
| Retained earnings | 57,120 | 56,692 | 54,825 |
| Proposed dividend | 0 | 0 | 28,409 |
| Total equity | 62,185 | 64,689 | 89,820 |
| Liabilities | | | |
| Non-current liabilities | | | |
| Deferred tax | 899 | 608 | 973 |
| Provisions | 4,842 | 4,536 | 4,687 |
| Other debt | 1,717 | 1,971 | 2,343 |
| Total non-current liabilities | 7,458 | 7,115 | 8,003 |
| Current liabilities | | | |
| Prepayments from clients | 18,566 | 14,530 | 7,678 |
| Trade payables and other payables | 36,103 | 34,572 | 42,215 |
| Income tax | 1,763 | 1,217 | 1,810 |
| Provisions | 10 | 210 | 3 |
| Total current liabilities | 56,442 | 50,529 | 51,706 |
| Total liabilities | 63,900 | 57,644 | 59,709 |
| Total liabilities and equity | 126,085 | 122,333 | 149,529 |
Page 17 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Consolidated cash flow statement
| EUR*.000 | 2016 Q2 | 2015 Q2 | 2016 H1 | 2015 H1 | 2015 FY |
|---|---|---|---|---|---|
| Profit for the period | 10,088 | 12,550 | 14,601 | 16,849 | 52,584 |
| Adjustments for non cash operating items | 8,841 | 5,601 | 10,797 | 11,337 | 26,990 |
| Changes in working capital | -8,138 | -8,047 | 9,571 | 3,900 | -3,870 |
| Cash from operating activities before financial items | 10,791 | 10,104 | 34,969 | 32,086 | 75,704 |
| Financial income received | 7 | 8 | 17 | 19 | 63 |
| Financial expenses paid | -114 | -113 | -219 | -124 | -387 |
| Income taxes paid | 81 | -2,519 | -2,460 | -10,498 | -21,174 |
| Net cash from operating activities | 10,765 | 7,480 | 32,307 | 21,483 | 54,206 |
| Purchase of associates | 0 | 0 | 0 | 0 | -138 |
| Purchase of intangible fixed assets | 0 | -141 | -14 | -141 | -277 |
| Purchase of property, plant and equipment | -1,140 | -1,016 | -1,503 | -1,216 | -2,029 |
| Proceeds from sale of property, plant and equipment | 70 | 14 | 73 | 14 | 32 |
| Purchase of financial assets | -8 | -18 | -13 | -27 | -311 |
| Proceeds from sale of financial assets | 214 | 5 | 237 | 31 | 88 |
| Dividends from associates | 0 | 0 | 91 | 0 | 10 |
| Net cash from/(used) in investing activities | -864 | -1,156 | -1,129 | -1,339 | -2,625 |
| Net cash from operating and investing activities | 9,901 | 6,324 | 31,178 | 20,144 | 51,581 |
| Employee bonds | 0 | 0 | 0 | -744 | -744 |
| Dividends paid | -28,431 | -5,010 | -28,431 | -24,464 | -24,457 |
| Acquisition of treasury shares | -11,709 | -3,532 | -16,056 | -8,657 | -21,221 |
| Net cash from/(used) in financing activities | -40,140 | -8,542 | -44,487 | -33,865 | -46,422 |
| Change in cash and cash equivalents | -30,239 | -2,218 | -13,309 | -13,721 | 5,159 |
| Total cash for the period | |||||
| Cash and cash equivalents at beginning of period | 60,125 | 26,923 | 43,344 | 37,995 | 37,995 |
| Foreign exchange adjustment of cash and cash equivalents | 26 | -33 | -123 | 398 | 190 |
| Cash and cash equivalents at 30 June | 29,912 | 24,672 | 29,912 | 24,672 | 43,344 |
Page 18 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Statement of changes in equity
| EUR'000 | Share capital | Exchange adjustment reserve | Retained earnings | Proposed dividend | Total |
|---|---|---|---|---|---|
| Group | |||||
| Equity at 1 January 2015 | 5,575 | -1,055 | 44,208 | 24,652 | 73,380 |
| Comprehensive income for the period * | |||||
| Total comprehensive income for the period | 0 | 3,477 | 16,849 | 0 | 20,326 |
| Transactions with owners | |||||
| Dividends paid to shareholders | 0 | 0 | 188 | -24,652 | -24,464 |
| Share-based payment | 0 | 0 | 4,369 | 0 | 4,369 |
| Tax, share-based payment | 0 | 0 | -265 | 0 | -265 |
| Purchase of treasury shares | 0 | 0 | -8,657 | 0 | -8,657 |
| Equity at 30 June 2015 | 5,575 | 2,422 | 56,692 | 0 | 64,689 |
| Equity at 1 July 2015 | 5,575 | 2,422 | 56,692 | 0 | 64,689 |
| Comprehensive income for the period * | |||||
| Total comprehensive income for the period | 0 | -1,411 | 35,505 | 0 | 34,094 |
| Transactions with owners | |||||
| Dividends paid to shareholders | 0 | 0 | 7 | 0 | 7 |
| Share-based payment | 0 | 0 | 2,114 | 0 | 2,114 |
| Tax, share-based payment | 0 | 0 | 1,480 | 0 | 1,480 |
| Purchase of treasury shares | 0 | 0 | -12,564 | 0 | -12,564 |
| Proposed dividend to shareholders | 0 | 0 | -28,409 | 28,409 | 0 |
| Equity at 31 December 2015 | 5,575 | 1,011 | 54,825 | 28,409 | 89,820 |
| Equity at 1 January 2016 | 5,575 | 1,011 | 54,825 | 28,409 | 89,820 |
| Comprehensive income for the period * | |||||
| Total comprehensive income for the period | 0 | -1,521 | 14,601 | 0 | 13,080 |
| Transactions with owners | |||||
| Dividends paid to shareholders | 0 | 0 | -22 | -28,409 | -28,431 |
| Share-based payment | 0 | 0 | 4,017 | 0 | 4,017 |
| Tax, share-based payment | 0 | 0 | -245 | 0 | -245 |
| Purchase of treasury shares | 0 | 0 | -16,056 | 0 | -16,056 |
| Equity at 30 June 2016 | 5,575 | -510 | 57,120 | 0 | 62,185 |
- Please refer to Statement of comprehensive income page 16
Page 19 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Notes to the financial statements
Accounting policies
The interim report is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and Danish disclosure requirements for interim reports of listed companies.
The accounting policies applied are consistent with those of the Annual Report 2015. See the Annual Report 2015 for a comprehensive description of the accounting policies applied.
Change in accounting policies
Effective 1 January 2016, a number of new accounting standards and interpretations have been implemented which do not have any monetary effect on the SimCorp Group's result, assets, liabilities or equity.
Judgments and estimates
The preparation of interim reports requires management to make accounting judgments and estimates that affect the use of accounting policies and recognized assets, liabilities, income and expenses. Actual results may differ from these estimates.
The most significant estimates made by management when using the Group's accounting policies and the most significant judgment uncertainties attached hereto are the same for the preparation of the interim report as for the preparation of the Annual Report 2015.
Page 20 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Segment information
| EUR '000
1 April - 30 June 2016 | Nordic region | Central Europe | UK and Middle East | Benelux and France | Asia | North America | Dimension | Coric | Corporate functions | Total | Elimination/ not allocated | Group |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue external clients | 12,985 | 16,766 | 9,439 | 13,079 | 3,833 | 9,656 | 401 | 2,300 | 79 | 68,538 | 0 | 68,538 |
| Revenue between segments | 2,786 | 953 | 94 | 785 | 514 | 1,224 | 24,704 | 401 | 365 | 31,826 | -31,826 | 0 |
| Total segment revenue | 15,771 | 17,719 | 9,533 | 13,864 | 4,347 | 10,880 | 25,105 | 2,701 | 444 | 100,364 | -31,826 | 68,538 |
| Segment operating profit (EBIT) | 1,929 | 1,572 | 2,434 | 1,369 | 666 | 873 | 8,022 | 42 | -3,255 | 13,652 | 0 | 13,652 |
| 1 January - 30 June 2016 | | | | | | | | | | | | |
| Revenue external clients | 24,776 | 33,107 | 15,048 | 23,897 | 7,588 | 18,333 | 758 | 4,488 | 151 | 128,146 | 0 | 128,146 |
| Revenue between segments | 5,497 | 1,776 | 199 | 1,652 | 946 | 2,416 | 48,350 | 860 | 634 | 62,330 | -62,330 | 0 |
| Total segment revenue | 30,273 | 34,883 | 15,247 | 25,549 | 8,534 | 20,749 | 49,108 | 5,348 | 785 | 190,476 | -62,330 | 128,146 |
| Segment operating profit (EBIT) | 3,634 | 1,976 | 2,055 | 2,100 | 787 | -1,057 | 15,332 | 78 | -5,387 | 19,518 | 0 | 19,518 |
| Total assets | 13,488 | 17,383 | 10,584 | 24,438 | 5,558 | 20,876 | 1,369 | 11,512 | 5,366 | 110,574 | 15,511 | 126,085 |
| 1 April - 30 June 2015 | | | | | | | | | | | | |
| Revenue external clients | 15,818 | 17,731 | 8,729 | 9,730 | 4,418 | 8,978 | 384 | 2,106 | 127 | 68,021 | 0 | 68,021 |
| Revenue between segments | 3,417 | 715 | 46 | 1,316 | 530 | 945 | 30,146 | 69 | 215 | 37,399 | -37,399 | 0 |
| Total segment revenue | 19,235 | 18,446 | 8,775 | 11,046 | 4,948 | 9,923 | 30,530 | 2,175 | 342 | 105,420 | -37,399 | 68,021 |
| Segment operating profit (EBIT) | 2,912 | 1,687 | 563 | 1,095 | 849 | -3,458 | 15,060 | 5 | -2,008 | 16,705 | 0 | 16,705 |
| 1 January - 30 June 2015 | | | | | | | | | | | | |
| Revenue external clients | 27,988 | 33,681 | 13,628 | 18,915 | 8,264 | 17,198 | 774 | 3,873 | 188 | 124,509 | 0 | 124,509 |
| Revenue between segments | 5,327 | 1,129 | 62 | 2,482 | 976 | 2,024 | 53,629 | 105 | 312 | 66,046 | -66,046 | 0 |
| Total segment revenue | 33,315 | 34,810 | 13,690 | 21,397 | 9,240 | 19,222 | 54,403 | 3,978 | 500 | 190,555 | -66,046 | 124,509 |
| Segment operating profit (EBIT) | 3,493 | 3,001 | 316 | 1,342 | 466 | -3,963 | 23,257 | -450 | -4,160 | 23,302 | 0 | 23,302 |
| Total assets | 14,493 | 22,319 | 12,783 | 20,619 | 6,719 | 14,062 | 1,298 | 11,279 | 5,345 | 108,917 | 13,416 | 122,333 |
Revenue disclosures are based on SimCorp's market units and development activities while asset allocation is based on the physical location of the assets. Unallocated assets relate to non-current headquarter assets, cash, taxes and investments in associates.
| Reconciliation of the profit EUR'000 | 2016 Q2 | 2015 Q2 | 2016 H1 | 2015 H1 |
|---|---|---|---|---|
| Total segment operating profit reported (EBIT) | 13,652 | 16,705 | 19,518 | 23,302 |
| Share of profit after tax on associates | 16 | 5 | 5 | 64 |
| Financial income | 733 | 119 | 1,570 | 1,116 |
| Financial expenses | 753 | 521 | 1,528 | 2,294 |
| Profit for the period before tax, see income statement | 13,648 | 16,308 | 19,565 | 22,188 |
Property, plant and equipment and investment obligations
The SimCorp Group does not hold assets under finance leases and has not provided assets as security.
Contingent liabilities
No material changes have occurred to contingent liabilities referred to in the Annual Report 2015.
Events after 30 June 2016
No significant events have occurred after the balance sheet date that affect the interim report.
Page 21 of 22
Company Announcement
Interim report for H1 2016: Record high order book
Appendix:
The distribution of H1 and Q2 revenue by type of service (2015 segmentation):
| EURm | Revenue H1 2016 | Share of revenue H1 2016 | Revenue H1 2015 | Share of revenue H1 2015 | Growth relative to H1 2015 | Growth local currency relative to H1 2015 |
|---|---|---|---|---|---|---|
| Licenses - new sales | 3.1 | 2.4 % | 8.2 | 6.6% | -62.2% | -62.1% |
| Licenses - additional sales | 12.9 | 10.1 % | 11.8 | 9.5% | 9.3% | 13.5% |
| Professional services | 46.0 | 35.9 % | 41.6 | 33.4% | 10.6% | 13.1% |
| Maintenance | 63.3 | 49.4 % | 60.5 | 48.6% | 4.6% | 6.5% |
| Other | 2.8 | 2.2 % | 2.4 | 1.9% | 16.7% | 25.2% |
| Total | 128.1 | 100.0 % | 124.5 | 100.0% | 2.9% | 5.1% |
| Adjusted non-GAAP | ||||||
| Subscription - new sales - adj. order | 4.6 | |||||
| Adjusted non-GAAP revenue | 132.7 | 124.5 | 6.6% | 8.8% | ||
| EURm | Revenue Q2 2016 | Share of revenue Q2 2016 | Revenue Q2 2015 | Share of revenue Q2 2015 | Growth relative to Q2 2015 | Growth local currency relative to Q2 2015 |
| --- | --- | --- | --- | --- | --- | --- |
| Licenses - new sales | 1.4 | 2.0 % | 5.0 | 7.4% | -72.0% | -71.5% |
| Licenses - additional sales | 9.0 | 13.1 % | 9.7 | 14.3% | -7.2% | -2.9% |
| Professional services | 24.7 | 36.1 % | 21.5 | 31.6% | 14.9% | 18.2% |
| Maintenance | 32.0 | 46.7 % | 30.6 | 45.0% | 4.6% | 7.0% |
| Other | 1.4 | 2.1 % | 1.2 | 1.7% | 16.7% | 24.8% |
| Total | 68.5 | 100.0 % | 68.0 | 100.0% | 0.7% | 3.7% |
| Adjusted non-GAAP | ||||||
| Subscription - new sales - adj. order | (0.1) | |||||
| Adjusted non-GAAP revenue | 68.4 | 68.0 | 0.5% | 3.4% |
The quarterly distribution of revenue per type of service for 2015 (new segmentation):
| EURm | Revenue Q1 2015 | Revenue Q2 2015 | Revenue Q3 2015 | Revenue Q4 2015 | Revenue 2015 |
|---|---|---|---|---|---|
| Recurring Revenue | |||||
| Subscription - new sales | 1.4 | 1.6 | 1.5 | 1.4 | 5.9 |
| Subscription - additional sales | 0.3 | 0.5 | 0.6 | 0.7 | 2.1 |
| Professional services | 5.3 | 7.4 | 5.6 | 6.0 | 24.3 |
| Maintenance | 29.4 | 30.1 | 30.1 | 30.5 | 120.1 |
| Hosting and other | 0.2 | 0.1 | 0.1 | 0.2 | 0.6 |
| Total recurring revenue | 36.6 | 39.7 | 37.9 | 38.8 | 153.0 |
| Non-Recurring Revenue | |||||
| Perpetual licences - new sales | 2.3 | 4.2 | 12.6 | 10.3 | 29.4 |
| Perpetual licences - additional sales | 1.8 | 9.2 | 3.4 | 15.8 | 30.2 |
| Professional services | 14.6 | 14.0 | 14.3 | 17.2 | 60.1 |
| Other | 1.2 | 0.9 | 1.3 | 1.7 | 5.1 |
| Total non-recurring revenue | 19.9 | 28.3 | 31.6 | 45.0 | 124.8 |
| Total revenue | 56.5 | 68.0 | 69.5 | 83.8 | 277.8 |
Page 22 of 22