SimCorp — Interim / Quarterly Report 2018

Nov 12, 2018

SimCorp
Company reg. no: 15 50 52 81
Company Announcement no. 12/2018
November 9, 2018

Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

9M 2018 highlights:

• Reported revenue was EUR 253.5m, an increase of 10.6% when compared with 9M 2017, and an increase of 13.7% when measured in local currencies. As SimCorp Italiana, acquired in August 2017, accounted for 5.5%-points of the increase, organic revenue growth was 8.2%. Q3 2018 revenue in reported currency was EUR 80.7m, 0.5% lower than in Q3 2017.
• EBIT was EUR 52.5m compared with EUR 43.0m in 9M 2017. Currency fluctuations impacted EBIT negatively by EUR 3.6m during the first nine months of the year.
• EBIT margin was 20.7% compared with 18.8% in 9M 2017, driven by revenue growth, SimCorp Italiana contribution, and general cost focus. Measured in local currencies, the EBIT margin was 21.5% and the underlying organic EBIT margin was 20.6%.
• Net profit was EUR 39.3m compared with EUR 31.1m in 9M 2017.
• Total order intake* from new and add-on licenses was EUR 40.4m, an increase of EUR 7.8m or 24% compared with the same period last year. The order intake in Q3 2018 of EUR 14.5m includes signing of a new client for a subscription agreement in North America and three larger add-on license agreements in Central Europe, Northern Europe and North America.
• At September 30, 2018, the order book* amounted to EUR 30.3m, an increase of EUR 15.1m when compared with the order book at September 30, 2017. The order book increased by EUR 4.5m in Q3 2018, primarily due to new client driven development orders signed in Southern Europe and North America, where income will be recognized when the software is delivered.
• Free cash flow was EUR 64.3m compared with EUR 36.1m in 9M 2017 due to positive working capital development in receivables and prepayments from clients.

Financial guidance

• SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2018. Revenue growth measured in local currencies is expected to be between 10% and 15%, while the expectation for EBIT margin measured in local currencies remains between 24.5% and 27.5%.

Klaus Holse, SimCorp CEO comments: "While Q3 was slow in terms of order intake and license revenue, we are pleased with the signing of a new client in North America. We delivered against our targets of double-digit growth and improved EBIT margin for the first nine months, and with a strong order book and sales pipeline, the outlook for Q4 remains positive."

• For comparison reason, the order intake and order book do not include SimCorp Italiana (Sofia).

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

Investor presentation

SimCorp's Executive Management Board will present the report at a conference call Monday, November 12, 2018 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:

From Denmark: +45 3515 8049
From USA: +1 929-477-0324
From other countries: +44 (0)330 336 9105
Pin code to access the call: 6030407

At the end of the presentation there will be a Q&A session.

It will also be possible to follow the presentation via this link: https://edge.media-server.com/m6/p/dkpk8i9u.

The presentation will be available prior to the conference call via SimCorp's website www.simcorp.com.

Enquiries regarding this announcement should be addressed to:

Investor contacts:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000)
Michael Rosenvold, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 5235 0000)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)

Media contact:
Anders Crillesen, Group Communications Director, (+45 3544 6474, +45 2779 1286)

Company Announcement no. 12/2018

Page 2 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Financial highlights and key ratios for the SimCorp Group

EUR '000	2018 Q3	2017 Q3	2018 9M	2017 9M	2017 FY
INCOME STATEMENT
Revenue	80,677	81,048	253,522	229,222	343,405
Earnings before interest, tax, depreciation, and amortization (EBITDA)	16,312	20,666	55,948	45,782	92,851
Operating profit (EBIT)	15,137	19,633	52,497	43,027	88,894
Financial items, net	739	-35	225	-908	-1,204
Profit before tax	15,876	19,598	52,722	42,119	87,690
Profit for the period	11,807	14,161	39,321	31,070	66,497
BALANCE SHEET
Share capital	5,441	5,467	5,441	5,467	5,467
Total equity	130,030	85,903	130,030	85,903	116,581
Bank loan	10,000	30,000	10,000	30,000	30,000
Total intangible assets	42,461	44,730	42,461	44,730	44,256
Total property, plant, and equipment	4,888	5,778	4,888	5,778	5,528
Receivables	70,261	74,711	70,261	74,711	86,080
Contracts assets	60,891	33,596	60,891	33,596	49,946
Cash and cash equivalents	41,305	21,764	41,305	21,764	31,412
Total assets	234,394	198,735	234,394	198,735	230,616
CASH FLOW
Cash flow from operating activities	18,618	14,186	65,241	39,811	55,532
Cash flow from investing activities	-195	-28,830	-878	-34,787	-26,930
Cash flow from financing activities	-20,000	25,028	-54,570	-22,836	-28,294
Free cash flow	18,385	13,596	64,286	36,133	51,317
Change in cash and cash equivalents	-1,577	10,384	9,793	-17,812	308
EMPLOYEES
Number of employees at the end of the period	1,617	1,550	1,617	1,550	1,547
Average number of employees - FTE	1,560	1,486	1,539	1,379	1,421
FINANCIAL RATIOS
EBIT margin (%)	18.8	24.2	20.7	18.8	25.9
ROIC (return on invested capital) (%)	55.6	91.8	61.2	62.2	107.4
Receivables turnover ratio	7.7	9.1	8.0	8.6	7.6
Equity ratio (%)	55.5	43.2	55.5	43.2	50.6
Return on equity (%)	38.4	74.6	39.0	73.2	64.5
SHARE PERFORMANCE
Earnings per share - EPS (EUR)	0.30	0.36	0.99	0.79	1.69
Diluted earnings per share - EPS-D (EUR)	0.30	0.36	0.98	0.78	1.67
Cash flow per share - CFPS (EUR)	0.47	0.36	1.62	1.01	1.41
MARKET VALUE RATIOS
Average number of shares (m)	39.5	39.3	39.8	39.5	39.4
Average number of shares - diluted (m)	40.0	39.8	40.2	39.9	39.9
EUR/DKK rate of exchange at end of period	7.4564	7.4423	7.4564	7.4423	7.4449

Please refer to the definition of ratios on page 74 of the Annual Report 2017. The interim report is unaudited and has not been reviewed by external auditors.

Page 3 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Management's report – nine months ended September 30, 2018

Development in sales and orders

In Q3 2018, one new SimCorp Dimension contract was signed in North America and three larger add-on orders were signed in Central Europe, Northern Europe and North America.

Q3 2018 order intake was EUR 14.5m compared with EUR 15.9m in the same period last year. Order intake from client driven development (CDD) accounted for EUR 4.5m compared with EUR 0.3m in the same period last year.

9M 2018 order intake was EUR 40.4m compared with EUR 32.6m in the same period last year, of which order intake from CDD accounted for EUR 6.6m compared with EUR 0.8m in the same period last year.

A total of four new subscription based SimCorp Dimension license contracts were signed in 9M 2018. Several existing customers have also added to their current agreements, including a number of larger perpetual add-on SimCorp Dimension contracts in Central Europe, Northern Europe and North America. In addition, a number of SimCorp Coric subscription agreements were renewed in 9M 2018 in the UK and in North America.

The order book of EUR 30.3m at September 30, 2018 is an increase of EUR 15.1m compared with same time last year. EUR 9.0m of the order book is related to CDD orders, where income will be recognized when the software is delivered, compared with EUR 1.4m at the same time last year.

• Order intake and order book include licenses to new clients as well as add-on licenses to existing clients. For comparison reason the order intake and order book only include SimCorp Dimension and SimCorp Coric and not SimCorp Italiana (Sofia). The order book is the total aggregated license value of signed subscription and perpetual license agreements, including CDD orders, that have not yet been recognized in income.

Page 4 of 22

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Page 5 of 22

Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

Revenue

9M 2018 revenue of EUR 253.5m was up 10.6% relative to 9M 2017. Measured in local currencies the increase was 13.7% and the underlying organic revenue growth was 8.2% in 9M 2018, reflecting a 5.5%-point positive impact from the acquisition of SimCorp Italiana, acquired in August 2017.

Revenue recognized from subscription-based licenses and from perpetual add-on licenses totalled EUR 38.8m, EUR 4.6m more than in 9M 2017. The annual renewal of SimCorp Italiana's subscription-based agreements is predominantly in the first quarter of a year, and it accounted for EUR 4.5m of the increase in 9M 2018.

Q3 2018 revenue in reported currency was EUR 80.7m, 0.5% lower than in Q3 2017. Measured in local currencies the increase was 0.2%, while the underlying organic revenue decreased by 1.3% in Q3 2018.

In Q3 2018, revenue recognized from subscription-based licenses and perpetual add-on licenses totalled EUR 9.8m, EUR 4.4m less than in Q3 2017.

The currency and M&A impact on revenue growth is shown below:

9M 2018 revenue growth

9M 2017 revenue growth

Q3 2018 revenue growth

Q3 2017 revenue growth

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

The development and distribution of quarterly revenue is shown below:

9M revenue

EURm	Revenue 9M 2018	Share of revenue 9M 2018	Revenue 9M 2017	Share of revenue 9M 2017	Growth relative to 9M 2017	Growth local currency relative to 9M 2017	Organic growth local currency relative to 9M 2017
Licenses - new sales	11.2	4.4%	12.9	5.6%	-13.4%	-8.7%	-8.7%
Licenses - additional sales	27.6	10.9%	21.3	9.3%	29.1%	31.8%	11.4%
Software updates and support*	110.6	43.6%	103.2	45.0%	7.2%	10.0%	7.2%
Professional services	95.5	37.7%	85.7	37.4%	11.5%	14.9%	8.6%
ASP hosting and training fees	8.6	3.4%	6.1	2.7%	41.5%	45.1%	44.8%
Total revenue	253.5	100.0%	229.2	100.0%	10.6%	13.7%	8.2%

• Maintenance revenue has been renamed "Software updates and support" to better reflect the nature of the revenue.

Q3 revenue

EURm	Revenue Q3 2018	Share of revenue Q3 2018	Revenue Q3 2017	Share of revenue Q3 2017	Growth relative to Q3 2017	Growth local currency relative to Q3 2017	Organic growth local currency relative to Q3 2017
Licenses - new sales	3.7	4.6%	6.4	7.9%	-42.5%	-43.6%	-43.6%
Licenses - additional sales	6.1	7.6%	7.8	9.6%	-22.1%	-20.3%	-20.9%
Software updates and support*	37.8	46.8%	34.7	42.8%	9.1%	10.3%	9.1%
Professional services	30.6	37.9%	29.7	36.7%	3.0%	3.6%	0.9%
ASP hosting and training fees	2.5	3.1%	2.4	3.0%	1.4%	-1.4%	-1.6%
Total revenue	80.7	100.0%	81.0	100.0%	-0.5%	0.2%	-1.3%

• Maintenance revenue has been renamed "Software updates and support" to better reflect the nature of the revenue.

Page 6 of 22

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Page 7 of 22

Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

For the first nine months, recognized revenue from new licenses was EUR 11.2m and recognized revenue from add-on licenses – consisting of additional license sales, renewals of subscription licenses and conversion of perpetual licenses to subscription licenses – was EUR 27.6m, of which EUR 4.5m related to the acquisition of SimCorp Italiana business. In total, the increase was 13.5% compared with 9M 2017 and the underlying organic growth was 3.8%.

In Q3 2018, revenue from new licenses was EUR 3.7m and add-on licenses EUR 6.1m compared with total licenses of EUR 14.2m in Q3 last year.

In 9M 2018, conversions accounted for less than 5% of the total add-on license sales, while renewals accounted for around 25% (of which approximately 15%-points related to SimCorp Italiana), and additional license sales accounted for more than 70%.

In Q3 2018, there was no conversions, while renewals accounted for around 20% (of which approximately 5%-points related to SimCorp Italiana), and additional license sales accounted for around 80%.

The split in add-on license sales is shown below:

9M 2018 add-on license sales split

• Additional regular license sales
• Renewals of SimCorp Italiana (Sofia)
• Renewals of SimCorp Dimension and Coric
• Conversions

Q3 2018 add-on license sales split

• Additional regular license sales
• Renewals of SimCorp Italiana (Sofia)
• Renewals of SimCorp Dimension and Coric
• Conversions

Software updates and support revenue continue to increase with the completion and implementation of new client installations and new functionality to existing clients. This revenue was EUR 110.6m in 9M 2018, up 7.2% on the same period last year. Currency fluctuations impacted the software updates and support revenue negatively by 2.8%, while the acquisition of SimCorp Italiana impacted the software updates and support revenue positively by 2.8%. Consequently, organic growth in software updates and support revenue was up 7.2%. In Q3 2018, revenue from software updates and support amounted to EUR 37.8m, an increase of 9.1% compared with Q3 last year, and measured organically the growth was also 9.1%.

In 9M 2018, revenue from professional services amounted to EUR 95.5m, which was an increase of 11.5% compared with EUR 85.7m in 9M 2017. Currency fluctuations impacted the professional services revenue negatively by 3.4%, while the acquisition of SimCorp Italiana impacted the professional services revenue positively by 6.3%. i.e. organic growth was 8.6%. In Q3 2018, revenue from professional services amounted to EUR 30.6m, an increase of 3.0% compared with Q3 last year, and measured organically the growth was 0.9%.

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

ASP hosting fees, other fees related to sale of third party solutions and training fees amounted to EUR 8.6m compared with EUR 6.1m in 9M 2017, and were EUR 2.5m in Q3 2018 compared with EUR 2.4m in Q3 last year.

Operating costs

SimCorp's total operating costs (including depreciation and amortization) amounted to EUR 201.3m in 9M 2018, compared with EUR 186.3m in 9M 2017, an increase of 8.0%. Currency fluctuations reduced the total costs by 2.0%. Measured in local currencies and adjusted for the impact from the acquisition of SimCorp Italiana of 4.1%, the organic cost increase was 5.9%. The organic increase in costs was primarily related to the annual salary increase of around 3%, and an increase in the number of employees mainly due to the growth in the business activities within professional services.

Salaries and staff related costs accounted for 70% of total costs compared with 69% in 9M 2017.

In 9M 2017, operating costs included EUR 0.4m of one-time costs related to the acquisition of SimCorp Italiana (included in the cost line "Administrative expenses").

In Q3 2018, total operating costs (including depreciation and amortization) amounted to EUR 65.7m compared with EUR 61.4m in Q3 2017, an increase of 6.9%. Currency fluctuations reduced the total costs by 0.3%. Measured in local currencies and adjusted for the impact from the acquisition of SimCorp Italiana of 1.7%, the organic cost increase was 5.5%. The increase in operating costs is linked to the business growth mentioned above.

The development and distribution of quarterly operating costs are shown in the tables below:

Page 8 of 22

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Page 9 of 22

Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

9M operating costs

EURm	Costs 9M 2018	Share of costs 9M 2018	Share of Revenue 9M 2018	Costs 9M 2017	Share of costs 9M 2017	Share of Revenue 9M 2017	Growth relative to 9M 2017	Growth local currency relative to 9M 2017	Organic growth local currency relative to 9M 2017
Cost of sales	106.2	52.7%	41.9%	96.8	52.0%	42.2%	9.7%	12.3%	8.7%
Research and development costs	50.7	25.2%	20.0%	47.1	25.3%	20.6%	7.6%	8.0%	1.7%
Sales and marketing costs	28.6	14.2%	11.3%	27.4	14.7%	11.9%	4.5%	7.6%	5.8%
Administrative expenses	15.8	7.9%	6.2%	15.0	8.0%	6.6%	5.3%	6.0%	1.2%
Total operating cost	201.3	100.0%	79.4%	186.3	100.0%	81.3%	8.0%	10.0%	5.9%

Q3 operating costs

EURm	Costs Q3 2018	Share of costs Q3 2018	Share of Revenue Q3 2018	Costs Q3 2017	Share of costs Q3 2017	Share of Revenue Q3 2017	Growth relative to Q3 2017	Growth local currency relative to Q3 2017	Organic growth local currency relative to Q3 2017
Cost of sales	34.4	52.4%	42.6%	32.4	52.7%	39.9%	6.3%	6.7%	5.3%
Research and development costs	16.1	24.5%	20.0%	15.2	24.8%	18.8%	5.7%	5.8%	3.3%
Sales and marketing costs	9.7	14.8%	12.0%	9.3	15.1%	11.5%	4.3%	4.4%	3.7%
Administrative expenses	5.5	8.3%	6.8%	4.5	7.4%	5.6%	20.4%	20.6%	18.5%
Total operating cost	65.7	100.0%	81.4%	61.4	100.0%	75.8%	6.9%	7.2%	5.5%

Employees

At September 30, 2018, the Group had 1,617 employees, 66 more than at 30 September, 2017.

On average, the Group had 1,539 full time equivalent employees during the first nine months of 2018, compared with 1,379 full time equivalent employees for the same period last year.

Group performance

For 9M 2018, the Group posted EBIT of EUR 52.5m compared with EUR 43.0m in 9M 2017. Currency rate fluctuations decreased EBIT by EUR 3.6m for the first nine months of the year.

EBIT margin increased from 18.8% in 9M 2017 to 20.7% for the same period this year. When measured in local currencies the EBIT margin was 21.5% in 9M 2018, main drivers behind the improved margin being revenue growth, SimCorp Italiana contribution and cost focus. The underlying organic EBIT margin was 20.6%.

Q3 EBIT was EUR 15.1m against EUR 19.6m in Q3 last year. Currency rate fluctuations decreased EBIT by EUR 0.4m in Q3. EBIT margin was 18.8% compared with 24.2% in Q3 2017. When measured in local currencies the EBIT margin was 19.1%. Likewise, the underlying organic EBIT margin was 19.1% as no impact from acquisitions on EBIT margin in Q3.

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

The currency and M&A impact on EBIT margin is shown below:

9M 2018 EBIT margin

9M 2017 EBIT margin

Q3 2018 EBIT margin

Q3 2017 EBIT margin

The development in quarterly EBIT is shown below:

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

Profit before tax

In 9M 2018, financial income of EUR 4.4m and financial expenses of EUR 4.2m resulted in a net income of EUR 0.2m compared with a net expense of EUR 0.9m in the same period last year. Financial income and expenses are primarily related to foreign exchange adjustments and impacted by intercompany balances with parent company and the accounting for subscriptions agreements.

The Group posted a pre-tax profit of EUR 52.7m against a pre-tax profit of EUR 42.1m in 9M 2017. The estimated tax charge of EUR 13.4m is equivalent to a tax rate of 25.4% compared with 26.2% in 9M 2017. Thus, the Group's net profit for 9M 2018, amounted to EUR 39.3m compared with a net profit of EUR 31.1m for the same period last year.

For Q3 2018, the Group realized a pre-tax profit of EUR 15.9m, against EUR 19.6m in Q3 2017, and a net profit of EUR 11.8m compared with EUR 14.2m 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 income of EUR 0.3m in 9M 2018, compared with a net expense of EUR 2.1m in the same period last year, which is included in other comprehensive income. 9M 2017, was impacted by the decrease in the exchange rates for GBP and USD relative to DKK and EUR.

Total comprehensive income for 9M 2018, was EUR 39.6m compared with EUR 28.9m in the same period last year. For Q3 2018, the total comprehensive income was EUR 11.8m, against EUR 13.6m in same quarter last year.

Balance sheet

SimCorp's total assets were EUR 234.4m at September 30, 2018, compared with EUR 198.7m a year earlier. The increase is primary related to the increase in contract assets of EUR 27.3m, reflecting the accounting effect of signing new subscriptions agreements in the last 12 months, and an increase in cash holdings of EUR 19.5m.

Cash holdings amounted to EUR 41.3m compared with EUR 21.8m a year earlier. The difference is mainly due to improved operating cash flow and no buyback program for treasury shares in 2018 due to repayment in Q3 2018 of EUR 20.0m of the EUR 30.0m loan obtained in connection with the acquisition of SimCorp Italiana.

Receivables amounted to EUR 70.3m at September 30, 2018, compared with EUR 74.7m at September 30, 2017. Receivables were EUR 15.8m lower than at December 31, 2017.

Contract assets increased by EUR 10.9m compared with December 31, 2017, as new and additional subscription licenses added EUR 19.9m to contract assets in 9M 2018, which exceeded invoiced subscription license fees of EUR 9.5m in 9M 2018 and financial element adjustments of EUR 0.5m.

SimCorp's total liabilities were EUR 104.4m at September 30, 2018, compared with EUR 112.8m a year earlier. The decrease is primarily related to the repayment of EUR 20.0m on loan in Q3 2018. The remaining EUR 10.0m are planned to be repaid in Q4 2018.

Page 11 of 22

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

Cash flow

Operating activities in 9M 2018 generated a cash inflow of EUR 65.2m compared with EUR 39.8m in 9M last year due to positive working capital development in receivables and prepayments from clients. Payment of income taxes amounted to EUR 10.4m, against EUR 6.1m in 9M 2017.

EUR 0.9m were spent on investing activities, compared with EUR 34.8m in 9M 2017, which included payment for SimCorp Italiana of EUR 28.2m and payment of the deferred consideration of EUR 2.9m related to the acquisition of SimCorp Coric in 2014.

Free cash flow (cash flow from operations reduced by CAPEX) was EUR 64.3m compared with EUR 36.1m in the first nine months of 2017.

Cash used in financial activities in 9M 2018, was for payment of dividends of EUR 34.6m and loan repayment of EUR 20.0m. In 9M 2017, cash used in financial activities was related to payment of dividends of EUR 33.3m and buyback of treasury shares, which reduced liquidity by EUR 19.6m. In Q3 2017, EUR 30.0m loan was obtained for the acquisition of SimCorp Italiana.

In Q3 2017, EUR 8.3m of cash and cash equivalent was acquired in connection with the acquisition of SimCorp Italiana.

Changes in equity

The company's equity amounted to EUR 130.0m at September 30, 2018. This is an increase of EUR 13.4m from December 31, 2017.

For 9M 2018, equity was increased by comprehensive income of EUR 39.6m as well as effects of share-based remuneration of EUR 8.3m. Equity was reduced by dividends of EUR 34.5m.

Page 12 of 22

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

Outlook for the financial year 2018*

SimCorp's financial results in the first nine months of 2018 were broadly in line with company expectations. SimCorp's intake of new customers varies considerably from one quarter to the next. The 9M 2018 intake of orders was EUR 40.4m compared with EUR 32.6m for the same period last year.

SimCorp enters Q4 2018 with EUR 321m of the projected 2018 revenue secured, EUR 30m or 10.3% higher than at the same time last year. SimCorp continues to experience a satisfactory, geographically diversified demand for its products and services.

Based on the results for 9M 2018, the performance to date in Q4 2018, and the pipeline for the rest of 2018, SimCorp maintains its expectations for full year revenue growth of between 10% and 15% and an EBIT margin of between 24.5% to 27.5%, all measured in local currencies. 3%-point of the expected revenue growth is related to the acquisition of SimCorp Italiana.

Based on exchange rates prevailing at October 31, 2018, SimCorp estimates currency fluctuations to have a negative impact on revenue growth of around 2% (unchanged from previous reporting) and to have a negative impact on EBIT margin of around 0.5%-points (unchanged from previous reporting).

• This announcement contains certain forward-looking statements and expectations in respect of the 2018 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 is expected to 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 13 of 22

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

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. Pages 23-26 of SimCorp's Annual Report 2017 describe 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

Restricted stock units

In Q3 2018, 746 restricted stock units have been granted to two employees related to incentive programs. The restricted stock units will vest after three years, subject to continuing employment.

433,377 restricted stock units are outstanding at September 30, 2018. The restricted stock units will be transferred in whole or in part between 2019 and 2022 to program participants still employed when the stock units vest, subject to performance conditions.

Holding of treasury shares

At September 30, 2018, the holding of treasury shares amounted to 917,718 treasury shares, equal to 2.27% of the Company's issued share capital. The total purchase value was EUR 46.5m with a market value of EUR 68.4m at September 30, 2018.

Headquarter in Copenhagen

SimCorp has in Q2 2018, extended the lease for its office in Copenhagen until April 30, 2029. The lease has been entered on market terms and with normal rent adjustment clauses. The extension of the lease increases rent commitments by EUR 35.5m.

New market entry, partnership and awards

In October 2018, SimCorp announced the opening of a new office in Japan. The Japanese investment management market is one of the most developed in APAC, and many firms are starting to invest outside the traditional, domestic market, which requires more advanced solutions. The market holds around 50 prospects for SimCorp Dimension.

A new partnership with Qlik, a leading provider of data analytics and business intelligence (BI), enables SimCorp to now extend its Data Warehouse offering with Qlik's BI and analytics tools, providing clients with fast insights into their investment management operations, portfolio analytics and performance management.

For the second consecutive year, SimCorp has been recognized with Waters Technology's Buy-Side Awards in the categories of 'Best Buy-Side IBOR' (investment book of record) and 'Best Portfolio Accounting Platform'. This is the fifth time in a row that SimCorp received the award for best IBOR.

Page 14 of 22

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

Signatures

The Board of Directors and the Executive Management Board have today considered and adopted the interim report for the period January 1 - September 30, 2018.

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 September 30, 2018, and of the profit of the Group's operations and cash flow for the period January 1 - September 30, 2018.

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 2017.

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.

November 9, 2018

Executive Management Board:

Klaus Holse
Chief Executive Officer

Georg Hetrodt
Chief Technology Officer

Michael Rosenvold
Chief Financial Officer

Board of Directors:

Jesper Brandgaard
Chairman

Peter Schütze
Vice Chairman

Hervé Couturier

Simon Jeffreys

Adam Warby

Joan A. Binstock

Morten Hübbe

Else Braathen

Vera Bergforth

Ulrik Elstrup Hansen

Page 15 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Consolidated income statement

EUR '000	2018	2017	2018	2017	2017
	Q3	Q3	9M	9M	FY
Revenue	80,677	81,048	253,522	229,222	343,405
Cost of sales	34,404	32,363	106,216	96,796	132,528
Gross profit	46,273	48,685	147,306	132,426	210,877
Other operating income	146	28	276	109	211
Research and development costs	16,122	15,258	50,665	47,116	64,797
Sales and marketing costs	9,701	9,288	28,609	27,377	37,198
Administrative expenses	5,459	4,534	15,811	15,015	20,199
Operating profit (EBIT)	15,137	19,633	52,497	43,027	88,894
Share of profit after tax in associates	-7	18	38	-10	51
Financial income	1,172	1,034	4,418	2,655	3,425
Financial expenses	426	1,087	4,231	3,553	4,680
Profit before tax	15,876	19,598	52,722	42,119	87,690
Tax on the profit for the period	4,069	5,437	13,401	11,049	21,193
Profit for the period	11,807	14,161	39,321	31,070	66,497
EARNINGS PER SHARE
Earnings per share - EPS (EUR)	0.30	0.36	0.99	0.79	1.69
Diluted earnings per share - EPS-D (EUR)	0.30	0.36	0.98	0.78	1.67

Statement of comprehensive income

EUR '000	2018	2017	2018	2017	2017
	Q3	Q3	9M	9M	FY
Profit for the period	11,807	14,161	39,321	31,070	66,497
Other comprehensive income
Items that will not be reclassified subsequently to the in
Remeasurements of defined benefit plans	0	0	-5	0	-113
Tax	0	0	0	0	33
Items that may be reclassified subsequently to the income statement, when specific conditions are met:
Foreign currency translation differences for foreign operations	42	-526	250	-2,142	-2,663
Other comprehensive income after tax	42	-526	245	-2,142	-2,743
Total comprehensive income	11,849	13,635	39,566	28,928	63,754

Page 16 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Consolidated balance sheet

	2018	2017	2017
EUR '000	9M	9M	FY
ASSETS
Goodwill	28,001	28,035	28,009
Software	6,785	7,943	7,777
Client contracts	7,675	8,752	8,470
Total intangible assets	42,461	44,730	44,256
Leasehold improvements	2,658	3,501	3,295
Technical equipment	1,436	1,238	1,277
Other equipment, fixtures, fittings and prepayments	794	1,039	956
Total property, plant, and equipment	4,888	5,778	5,528
Investments in associates	885	815	854
Deposits	1,971	2,048	1,995
Deferred tax	3,008	6,890	3,123
Total other non-current assets	5,864	9,753	5,972
Total non-current assets	53,213	60,261	55,756
Receivables	70,261	74,711	86,080
Contracts assets	60,891	33,596	49,946
Income tax receivables	1,911	1,430	1,387
Prepayments	6,813	6,973	6,035
Cash and cash equivalents	41,305	21,764	31,412
Total current assets	181,181	138,474	174,860
Total assets	234,394	198,735	230,616
LIABILITIES AND EQUITY
Share capital	5,441	5,467	5,467
Share premium	9,963	9,966	9,963
Exchange adjustment reserve	-2,920	-2,652	-3,170
Retained earnings	117,546	73,122	69,751
Proposed dividend	0	0	34,570
Total equity	130,030	85,903	116,581
Deferred tax	7,976	3,491	8,514
Provisions	8,725	8,168	8,025
Total non-current liabilities	16,701	11,659	16,539
Bank loan	10,000	30,000	30,000
Prepayments from clients	21,402	16,510	11,969
Trade payables and other payables	48,048	43,125	50,358
Income tax payables	7,881	11,530	4,976
Provisions	332	8	193
Total current liabilities	87,663	101,173	97,496
Total liabilities	104,364	112,832	114,035
Total liabilities and equity	234,394	198,735	230,616

Page 17 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Consolidated cash flow statement

EUR '000	2018 Q3	2017 Q3	2018 9M	2017 9M	2017 FY
Profit for the period	11,807	14,161	39,321	31,070	66,497
Adjustments for non-cash operating items	7,306	7,615	25,255	20,602	33,905
Changes in contract assets	-523	6,884	-10,945	6,269	-21,922
Changes in working capital	2,124	-13,063	22,164	-12,064	-7,931
Cash from operating activities before financial items	20,714	15,597	75,795	45,877	70,549
Financial income received	4	88	36	234	180
Financial expenses paid	-75	-34	-202	-208	-299
Income tax paid	-2,025	-1,465	-10,388	-6,092	-14,898
Net cash from operating activities	18,618	14,186	65,241	39,811	55,532
Deferred payment, purchase of subsidiaries	0	0	0	-2,931	-2,931
Purchase of subsidiaries *	0	-28,195	0	-28,195	-19,851
Purchase of intangible fixed assets	-32	0	-32	-1,134	-1,362
Purchase of property, plant, and equipment	-201	-590	-923	-2,553	-3,162
Proceeds from sale of property, plant, and equipment	0	0	0	9	309
Purchase of financial assets	-11	-69	-25	-103	-123
Proceeds from sale of financial assets	5	24	58	34	104
Dividends from associates	44	0	44	86	86
Net cash used in investing activities	-195	-28,830	-878	-34,787	-26,930
Net cash from operating and investing activities	18,423	-14,644	64,363	5,024	28,602
Dividends paid	0	0	-34,570	-33,272	-33,235
Purchase of treasury shares	0	-4,972	0	-19,564	-25,059
Proceeds, loans	0	30,000	0	30,000	30,000
Repayment, loans	-20,000	0	-20,000	0	0
Net cash used in financing activities	-20,000	25,028	-54,570	-22,836	-28,294
Change in cash and cash equivalents	-1,577	10,384	9,793	-17,812	308
Cash and cash equivalents at beginning of period	42,832	3,139	31,412	31,590	31,590
Cash and cash equivalents acquired *	0	8,344	0	8,344	0
Foreign exchange adjustment of cash and cash equivalents	50	-103	100	-358	-486
Cash and cash equivalents end of period	41,305	21,764	41,305	21,764	31,412

• Purchase of subsidiaries and cash acquired reported net in FY 2017.

Page 18 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Statement of changes in equity

2018 9M
EUR '000	Share capital	Share premium	Exchange adjustment reserve	Retained earnings	Proposed dividends for the year	Total
Equity at January 1	5,467	9,963	-3,170	69,751	34,570	116,581
Net profit for the period	-	-	-	39,321	-	39,321
Total other comprehensive income	-	-	250	-5	-	245
Total comprehensive income for the period	-	-	250	39,316	-	39,566
Transactions with owners
Cancellation of treasury shares	-26	-	-	26	-	0
Dividends paid to shareholders	-	-	-	75	-34,570	-34,495
Share-based payment	-	-	-	7,273	-	7,273
Tax, share-based payment	-	-	-	1,105	-	1,105
Equity at September 30	5,441	9,963	-2,920	117,546	0	130,030
2017
Equity at January 1 as previously reported	5,575	-	-518	34,173	33,341	72,571
Adjustment related to IFRS 15	-	-	-	27,874	-	27,874
Tax, adjustment related to IFRS 15	-	-	-	-6,967	-	-6,967
Adjusted balance at January 1	5,575	-	-518	55,080	33,341	93,478
Net profit for the period	-	-	-	31,070	-	31,070
Total other comprehensive income	-	-	-2,142	-	-	-2,142
Total comprehensive income for the period	-	-	-2,142	31,070	-	28,928
Transactions with owners
Issue of shares	26	9,963	11	-	-	10,000
Cancellation of treasury shares	-134	-	-	134	-	0
Share-based payment	-	-	-	5,890	-	5,890
Tax, share-based payment	-	-	-	417	-	417
Purchase of treasury shares	-	-	-	-19,564	-	-19,564
Dividends to shareholders	-	-	-	95	-33,341	-33,246
Equity at September 30	5,467	9,963	-2,649	73,122	0	85,903
Adjustment related to IFRS 15	-	-	-	-233	-	-233
Tax, adjustment related to IFRS 15	-	-	-	18	-	18
Adjusted balance at September 30	5,467	9,963	-2,649	72,907	-	85,688
Net profit for the period	-	-	-	35,427	-	35,427
Total other comprehensive income	-	-	-521	-80	-	-601
Total comprehensive income for the period	-	-	-521	35,347	-	34,826
Transactions with owners
Dividends paid to shareholders	-	-	-	106	-	106
Share-based payment	-	-	-	1,661	-	1,661
Tax, share-based payment	-	-	-	-110	-	-110
Purchase of treasury shares	-	-	-	-5,495	-	-5,495
Proposed dividends to shareholders	-	-	-	-34,665	34,570	-95
Equity at December 31	5,467	9,963	-3,170	69,751	34,570	116,581

Page 19 of 22

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Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

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 2017 except for the changes described below. See the Annual Report 2017 for a comprehensive description of the accounting policies applied.

Change in accounting policies

Effective January 1, 2018, IFRS 9 Financial Instruments was implemented, the standard contains requirements for the classification and measurement of financial assets and liabilities, impairment methodology and general hedge accounting. The implementation of IFRS9 and a number of other new accounting standards and interpretations have immaterial 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 2017.

Page 20 of 22

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Company Announcement

SimCorp reports revenue growth of
11%
and EBIT margin of
21%
for the first nine months of 2018

Segment information

EUR '000	Northern Europe	Central Europe	UK and Middle East	Southern Europe	Asia and Australia	North American	Dimension *	SimCorp Coric	SimCorp Sofia**	Segments total	Corporate Functions	Elimination/ Not allocated	Group
July 1 - September 30 2018
External revenue	21,931	18,498	5,003	9,550	4,215	16,822	298	715	3,408	80,440	237	-	80,677
Revenue between segments	3,312	2,171	1,542	257	656	963	27,053	409	209	36,572	1,846	-38,418	-
Total segment revenue	25,243	20,669	6,545	9,807	4,871	17,785	27,351	1,124	3,617	117,012	2,083	-38,418	80,677
EBITDA	1,907	1,714	732	-21	491	1,819	16,066	-964	451	22,195	-5,882	-	16,313
Depreciation and amortization	26	12	79	8	16	88	33	142	361	765	411	-	1,176
Segment operating profit (EBIT)	1,881	1,702	653	-29	475	1,731	16,033	-1,106	90	21,430	-6,293	-	15,137
January 1 - September 30 2018
External revenue	74,007	51,420	17,094	30,905	12,410	47,193	844	4,319	14,851	253,043	479	-	253,522
Revenue between segments	11,889	6,819	6,172	745	1,286	3,273	78,066	1,188	559	109,997	4,717	-114,714	-
Total segment revenue	85,896	58,239	23,266	31,650	13,696	50,466	78,910	5,507	15,410	363,040	5,196	-114,714	253,522
EBITDA	7,333	4,927	1,729	-2,268	1,068	3,762	45,019	-158	6,465	67,877	-11,928	-	55,949
Depreciation and amortization	80	27	239	124	41	258	91	430	982	2,272	1,180	-	3,452
Segment operating profit (EBIT)	7,253	4,900	1,490	-2,392	1,027	3,504	44,928	-588	5,483	65,605	-13,108	-	52,497
Total assets	35,205	13,412	7,686	26,386	16,634	42,713	2,451	23,783	53,803	222,073	4,974	7,347	234,394
July 1 - September 30 2017
External revenue	24,842	17,166	5,682	8,039	5,761	14,652	340	2,288	2,002	80,772	276	-	81,048
Revenue between segments	3,251	2,702	1,828	-26	460	1,087	30,133	282	124	39,841	862	-40,703	-
Total segment revenue	28,093	19,868	7,510	8,013	6,221	15,739	30,473	2,570	2,126	120,613	1,138	-40,703	81,048
EBITDA	2,618	2,081	1,603	119	616	-251	13,892	2,568	245	23,491	-2,825	-	20,666
Depreciation and amortization	29	11	79	42	12	76	31	138	220	638	395	-	1,033
Segment operating profit (EBIT)	2,589	2,070	1,524	77	604	-327	13,861	2,430	25	22,853	-3,220	-	19,633
January 1 - September 30 2017
External revenue	68,502	49,634	19,636	22,083	14,535	44,107	1,006	7,164	2,002	228,669	553	-	229,222
Revenue between segments	10,429	6,673	6,861	150	1,441	4,041	84,402	911	124	115,032	2,348	-117,380	-
Total segment revenue	78,931	56,307	26,497	22,233	15,976	48,148	85,408	8,075	2,126	343,701	2,901	-117,380	229,222
EBITDA	8,796	4,064	1,260	490	1,038	2,049	32,584	3,435	245	53,961	-8,179	-	45,782
Depreciation and amortization	88	30	245	135	41	192	90	431	220	1,472	1,283	-	2,755
Segment operating profit (EBIT)	8,708	4,034	1,015	355	997	1,857	32,494	3,004	25	52,489	-9,462	-	43,027
Total assets	25,073	12,946	10,204	19,448	7,009	38,786	1,058	25,812	50,837	191,173	7,172	390	198,720

• SimCorp Dimension includes all development cost for SimCorp Dimension
  ** SimCorp Sofia from August 1, 2017.

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.

	2018	2017	2016	2015
EUR '000	123	123	993	966
Segment operating profit (EBIT)	15,137	19,633	52,497	43,027
Share of profit after tax on associates	-7	18	38	-30
Financial income	1,172	1,034	4,419	2,655
Financial expenses	429	1,087	4,231	5,553
Profit for the year before tax	15,875	19,598	52,722	42,119

Page 21 of 22

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Page 22 of 22

Company Announcement

SimCorp reports revenue growth of 11% and EBIT margin of 21% for the first nine months of 2018

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 2017.

Events after September 30, 2018

No significant events have occurred after the balance sheet date that affect the interim report.