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SimCorp Interim / Quarterly Report 2018
3384_rns_2019-02-20_fae433b0-2ad7-4501-a695-48f472b6a88b.pdf
Interim / Quarterly Report
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SimCorp
Company reg. no: 15 50 52 81
Company Announcement no. 1/2019
February 20, 2019
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Q4 2018 highlights:
- A strong finish to the year led to reported Q4 2018 revenue of EUR 129.1m, EBIT of EUR 50.8m and EBIT margin of 39.4% compared with Q4 2017 reported revenue of EUR 114.2m, EBIT of EUR 45.9m and EBIT margin of 40.2%.
- Total order intake* was EUR 60.6m, an increase of EUR 11.3m or 22.9% compared with Q4 2017. Six new SimCorp Dimension and two new SimCorp Coric license deals were signed in Q4 2018.
FY 2018 highlights:
- Reported revenue was EUR 382.6m, an increase of 11.4% when compared with 2017, and organic revenue growth was 9.5%.
- Reported EBIT was EUR 103.3m compared with EUR 88.9m in 2017.
- Reported EBIT margin was 27.0% compared with 25.9% in 2017, driven by revenue growth, SimCorp Italiana contribution, and general cost focus. The organic EBIT margin was 26.9%.
- Measured in local currencies, SimCorp achieved revenue growth for 2018 of 13.2% and an EBIT margin of 27.3%, which was in line with the guidance for the year of revenue growth between 10% and 15% and an EBIT margin between 24.5% and 27.5%, both measured in local currencies.
- Net profit was EUR 77.0m compared with EUR 66.5m in 2017.
- Total order intake* was EUR 101.0m, an increase of EUR 19.2m or 23.4% compared with 2017. Ten new SimCorp Dimension and two new SimCorp Coric license deals were signed in 2018, of which five of the SimCorp Dimension and one of the SimCorp Coric deals were signed in the strategically important North American market.
- At December 31, 2018, the order book* amounted to EUR 45.5m, an increase of EUR 20.7m when compared with the order book at year-end 2017. The order book increased by EUR 15.1m in Q4 2018.
-
Free cash flow was EUR 80.2m compared with EUR 51.3m in 2017 due to higher operating profit and positive working capital development in receivables, prepayments from clients and payables. The net cash position was EUR 47.5m compared with EUR 1.4m at year-end 2017.
-
For comparison reason, the order intake and order book do not include SimCorp Italiana (Sofia).
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
- SimCorp enters 2019 with EUR 240.7m of the full year's revenue signed, an improvement of EUR 24.9m or 11.5% compared with last year.
- The Board of Directors intends to recommend to shareholders at the Annual General Meeting 2019 that dividends be declared at the rate of DKK 6.75 per share compared with DKK 6.50 last year, equivalent to 47% of profit for the year and 45% of free cash flow in 2018.
- In addition, provided there will be no specific requirements for liquidity, SimCorp expects to buy back shares in 2019. The intention is to purchase shares for EUR 25m over the next 12 months in two half yearly buy-back programs of EUR 12.5m each.
- At the AGM 2019, Jesper Brandgaard will resign after 12 years as a member of the Board, 11 of these as Chairman. As new Chairman, the Board proposes the current Vice-Chairman, Peter Schütze. Morten Hübbe is proposed as new Vice-Chairman.
Financial guidance 2019
- For 2019, SimCorp expects revenue to grow between 8% and 13% and the EBIT margin to be between 25.5% and 28.5%, measured in local currencies.
Klaus Holse, SimCorp CEO comments: “For the first time, SimCorp generated EBIT of more than EUR 100m, and with revenue growth of more than 10%, we continue to deliver against our Vision 2020 aspirations of being a growth company driven by innovation. In 2018, we welcomed ten new SimCorp Dimension clients and two new SimCorp Coric clients, and extended the relationship with many of our existing clients confirming the value of our integrated offering.”
Page 2 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Investor presentation
SimCorp's Executive Management Board will present the report at a conference call Wednesday, February 20, 2019 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:
From Denmark: +45 3272 8042
From USA: +1 631 510 7495
From other countries: +44 (0) 2071 928000
Pin code to access the call: 2748549
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/3r8i6kro.
The presentation will be available prior to the conference call via SimCorp's website
http://www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings.
The Annual Report 2018 is available via this link
https://www.simcorp.com/annual-report-2018
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. 1/2019
Page 3 of 23
Company Announcement
SimCorp reports revenue growth of
11%
and EBIT margin of
27%
for 2018
Financial highlights and key ratios for the SimCorp Group
| EUR '000 | 2018 Q4 | 2017 Q4 | 2018 FY | 2017 FY |
|---|---|---|---|---|
| INCOME STATEMENT | ||||
| Revenue | 129,104 | 114,183 | 382,626 | 343,405 |
| Earnings before interest, tax, depreciation, and amortization (EBITDA) | 53,320 | 47,069 | 109,268 | 92,851 |
| Operating profit (EBIT) | 50,848 | 45,867 | 103,345 | 88,894 |
| Financial items, net | -1,034 | -296 | -809 | -1,204 |
| Profit before tax | 49,814 | 45,571 | 102,536 | 87,690 |
| Profit for the period | 37,650 | 35,427 | 76,971 | 66,497 |
| BALANCE SHEET | ||||
| Share capital | 5,441 | 5,467 | 5,441 | 5,467 |
| Total equity | 169,059 | 116,581 | 169,059 | 116,581 |
| Bank loan | - | 30,000 | - | 30,000 |
| Property, plant, and equipment | 5,377 | 5,528 | 5,377 | 5,528 |
| Receivables | 79,165 | 86,080 | 79,165 | 86,080 |
| Contract assets | 85,684 | 49,946 | 85,684 | 49,946 |
| Cash and cash equivalents | 47,500 | 31,412 | 47,500 | 31,412 |
| Total assets | 270,267 | 230,616 | 270,267 | 230,616 |
| CASH FLOW | ||||
| Cash flow from operating activities | 16,974 | 15,721 | 82,215 | 55,532 |
| Cash flow from investing activities | -842 | -487 | -1,720 | -35,274 |
| Cash flow from financing activities | -9,874 | -5,458 | -64,444 | -28,294 |
| Free cash flow | 15,867 | 15,184 | 80,153 | 51,317 |
| Net change in cash and cash equivalents | 6,258 | 9,776 | 16,051 | -8,036 |
| EMPLOYEES | ||||
| Number of employees at the end of the period | 1,660 | 1,547 | 1,660 | 1,547 |
| Average number of employees - FTE | 1,597 | 1,501 | 1,554 | 1,421 |
| FINANCIAL RATIOS | ||||
| EBIT margin (%) | 39.4 | 40.2 | 27.0 | 25.9 |
| ROIC (return on invested capital) (%) | 169.7 | 158.2 | 82.4 | 107.4 |
| Receivables turnover ratio | 11.2 | 10.1 | 8.2 | 7.6 |
| Equity ratio (%) | 62.6 | 50.6 | 62.6 | 50.6 |
| Return on equity (%) | 100.7 | 138.9 | 59.7 | 64.5 |
| SHARE PERFORMANCE | ||||
| Earnings per share - EPS (EUR) | 0.95 | 0.89 | 1.95 | 1.69 |
| Diluted earnings per share - EPS-D (EUR) | 0.94 | 0.88 | 1.93 | 1.67 |
| Cash flow per share - CFPS (EUR) | 0.42 | 0.40 | 2.08 | 1.41 |
| MARKET VALUE RATIOS | ||||
| Average number of shares (m) | 39.6 | 39.3 | 39.5 | 39.4 |
| Average number of shares - diluted (m) | 40.0 | 39.7 | 39.9 | 39.9 |
| EUR/DKK rate of exchange at end of period | 7.4673 | 7.4449 | 7.4673 | 7.4449 |
Please refer to the definition of ratios on page 61 of the Annual Report 2018.
This interim report is unaudited and has not been reviewed by external auditors, for audited financial statements please refer to the comprehensive Annual Report 2018.
Page 4 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Management's report – Twelve months ended December 31, 2018
Development in sales and orders
In Q4 2018, six new SimCorp Dimension contracts were signed, of which four were in North America, one in APAC and one in Central Europe. Two new Coric deals were signed in North America and Benelux.
Q4 2018 order intake was EUR 60.6m compared with EUR 49.3m in Q4 last year. Order intake from Client-Driven Development (CDD) accounted for EUR 10.2m compared with EUR 2.3m in Q4 last year.
FY 2018 order intake was EUR 101.0m compared with EUR 81.8m last year, of which order intake from CDD accounted for EUR 16.8m compared with EUR 3.1m last year.
A total of ten new subscription-based SimCorp Dimension license contracts and two Coric contracts were signed in 2018. Several existing clients have also added to their current agreements, with particularly strong add-on sales achievements in the Northern and Central European business units.
The order book of EUR 45.5m at December 31, 2018 is an increase of EUR 20.7m compared with same time last year. EUR 17.7m of the order book is related to CDD orders, where income will be recognized when the software is delivered, compared with EUR 3.5m at the same time last year.
The largest addition to the order book stems from the signing in December 2018 of a significant initial SimCorp Dimension license agreement with an Asian investment company. As the realization of the total contract value is subject to successful completion of milestones in the initial term of the contract, only a smaller proportion of the license revenue was recognized in 2018, while the majority of the license revenue is expected to be recognized in Q2 2019.
Another large addition to the order book stems from SimCorp having entered into a strategic framework agreement with one of its existing German clients in December 2018. With the agreement, the client has committed to significantly increasing its engagement with SimCorp over a three-year period, including investing substantially in Client-Driven Development. The client will also expand its use of SimCorp Dimension, mainly in the front office and treasury areas, to be able to offer its own clients a wider range of services.
Page 5 of 23
Company Announcement
SimCorp reports revenue growth of
11%
and EBIT margin of
27%
for 2018
SimCorp licenses, quarterly order intake and order book*
* 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.
Revenue
Q4 2018 revenue in reported currency was EUR 129.1m, 13.1% higher than in Q4 2017. Measured in local currencies the increase was 12.2%.
SimCorp generated revenue of EUR 382.6m in 2018 compared with EUR 343.4m in 2017, equal to an increase of 11.4%. The growth was primarily driven by strong license sales to new clients. Exchange rate fluctuations for the year had a negative impact on revenue of EUR 6.2m, equal to 1.8%. Measured in local currencies, revenue thus increased by 13.2%. The underlying organic revenue growth was 9.5%, reflecting a 3.7%-points positive impact from the acquisition of SimCorp Italiana in August 2017.
Page 6 of 23
Company Announcement
SimCorp reports revenue growth of
11%
and EBIT margin of
27%
for 2018
The currency and acquisition impact on revenue growth is shown below:
Q4 2018 revenue growth
Q4 2017 revenue growth
FY 2018 revenue growth
FY 2017 revenue growth
The development and distribution of quarterly revenue is shown below:
Revenue
Page 7 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Q4 revenue
| EURm | Revenue Q4 2018 | Share of revenue Q4 2018 | Revenue Q4 2017 | Share of revenue Q4 2017 | Revenue growth | Revenue growth local currencies | Organic revenue growth local currencies |
|---|---|---|---|---|---|---|---|
| Licenses - new sales | 23,211 | 18.0% | 8,204 | 7.2% | 182.9% | 176.3% | 176.3% |
| Licenses - additional sales | 24,326 | 18.8% | 31,719 | 27.8% | -23.3% | -23.7% | -23.7% |
| Software updates and support | 38,925 | 30.2% | 35,359 | 31.0% | 10.1% | 10.0% | 10.0% |
| Professional services | 38,086 | 29.5% | 37,008 | 32.4% | 2.9% | 2.5% | 2.5% |
| ASP hosting and training fees | 4,556 | 3.5% | 1,893 | 1.6% | 140.7% | 134.2% | 134.2% |
| Total revenue | 129,104 | 100.0% | 114,183 | 100.0% | 13.1% | 12.2% | 12.2% |
"Software updates and support" previously maintenance revenue has been renamed to better reflect the nature of the revenue.
FY revenue
| EUR '000 | 2018 | Share of revenue 2018 | 2017 | Share of revenue 2017 | Revenue growth | Revenue growth local currency | Organic revenue growth local currency |
|---|---|---|---|---|---|---|---|
| Licenses - new sales | 34,371 | 9.0% | 21,094 | 6.1% | 62.9% | 63.2% | 63.2% |
| Licenses - additional sales | 51,885 | 13.6% | 53,064 | 15.5% | -2.2% | -1.4% | -9.6% |
| Software updates and support | 149,585 | 39.1% | 138,558 | 40.4% | 8.0% | 10.0% | 7.9% |
| Professional services | 133,679 | 34.9% | 122,725 | 35.7% | 8.9% | 11.2% | 6.7% |
| ASP hosting and training fees | 13,106 | 3.4% | 7,964 | 2.3% | 64.6% | 66.4% | 66.2% |
| Total revenue | 382,626 | 100.0% | 343,405 | 100.0% | 11.4% | 13.2% | 9.5% |
"Software updates and support" previously maintenance revenue has been renamed to better reflect the nature of the revenue.
In Q4 2018, revenue recognized from new and additional license sales totalled EUR 47.5m, EUR 7.6m more than in Q4 2017 mainly driven by a strong performance in North America.
In FY 2018, revenue recognized from new and additional license sales was EUR 86.3m, an increase of EUR 12.1m, or 16.3% compared with 2017. Currency fluctuations impacted total license fee negatively by EUR 0.5m. Measured in local currencies, the increase was 17.0%, and the underlying organic revenue growth in total license fee was 11.1% in 2018, reflecting a 5.9%-point positive impact from the acquisition of SimCorp Italiana.
In Q4 2018, there were three conversions, which accounted for 21% of the total add-on license sales, while renewals accounted for around 3%, and additional license sales accounted for around 76%.
For the FY 2018, the additional order intake was positively impacted by around EUR 7.2m from four clients converting their perpetual contracts to subscription-based license contracts. The annual subscription-based payments will be higher than the software updates and support fee (formerly called maintenance fee) under the perpetual contracts due to sale of additional functionality in connection with the conversions. However, the annual software updates and support fees will be EUR 1.0m lower, as the subscription license revenue according to IFRS 15 is recognized on contract completion. In comparison, additional order intake was impacted by EUR 8.9m due to conversions in 2017, resulting in annual software updates and support fees being decreased by EUR 2.5m.
Page 8 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
In FY 2018, conversions accounted for less than 12% (2017: 14%) of the total add-on license sales, while renewals accounted for around 14% (2017: 4%), of which approximately 9%-points related to SimCorp Italiana, and additional regular license sales accounted for 74% (2017: 82%).
The split in add-on license sales is shown below:
Q4 2018 add-on license sales split
- Additional regular license sales
- Renewals of SimCorp Italiana (Sofia)
- Renewals of SimCorp Dimension and Coric
- Conversions
FY 2018 add-on license sales split
- Additional regular license sales
- Renewals of SimCorp Italiana (Sofia)
- Renewals of SimCorp Dimension and Coric
- Conversions
In Q4 2018, revenue from software updates and support amounted to EUR 38.9m, an increase of 10.1% compared with Q4 last year.
In FY 2018, software updates and support revenue increased by 8.0% from EUR 138.6m last year to EUR 149.6m. Currency fluctuations impacted the software updates and support revenue negatively by 2.0%, while the acquisition of SimCorp Italiana impacted the software updates and support revenue positively by 2.1%. Consequently, organic growth in software updates and support revenue was 7.9%.
Six clients cancelled SimCorp Dimension contracts in 2018, of which one continued using SimCorp Dimension through an outsourcing client. Two SimCorp Coric and five small SimCorp Sofia licenses were terminated. The annual software update and support fee for these clients amounted to EUR 3.6m, equivalent to 0.9%-points of 2018 revenue compared with EUR 1.0m in 2017, equivalent to 0.3%-points of 2017 revenue.
In Q4 2018, revenue from professional services amounted to EUR 38.1m, an increase of 2.9% compared with Q4 last year.
In FY 2018, fees from professional services increased by 8.9% from EUR 122.7m last year to EUR 133.7m primarily due to strong sales of operational services to existing clients. Currency fluctuations impacted the professional services revenue negatively by 2.3%, while the acquisition of SimCorp Italiana impacted the professional services revenue positively by 4.5%, i.e. organic growth was 6.7%.
In Q4 2018, ASP hosting and training fees amounted to EUR 4.6m compared with EUR 1.9m in Q4 2017.
In FY 2018, ASP hosting and training fees amounted to EUR 13.1m compared with EUR 8.0m in 2017. In 2018, we added seven new ASP hosted clients, bringing the total number of clients on an ASP hosted solution to 12, of which eight clients are in North America, two in Northern Europe, one in Central Europe and one in APAC.
Page 9 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Operating costs
SimCorp's total operating costs (including depreciation and amortization) amounted to EUR 79.2m in Q4 2018, compared with EUR 68.4m in Q4 2017, an increase of 15.8%. Currency fluctuations reduced the total costs by 0.4%. Measured in local currencies the increase was 15.4%. The increase in operating costs was mainly linked to cost of sales, and sales and marketing, which is related to the high level of new subscription sales in Q4 and to the general business growth.
In FY 2018, total operating costs (including depreciation and amortization) increased by 10.1% from EUR 254.7m in 2017 to EUR 280.5m. Currency fluctuations reduced the total operating costs by 1.4%. Measured in local currencies and adjusted for the impact of the acquisition of SimCorp Italiana of 3.0%, the organic operating costs increase was 8.5%.
The organic increase in operating 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 within the professional services business.
In FY 2018, 70% of SimCorp's total operating costs were directly related to employees compared with 69% in 2017.
In FY 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").
The development and distribution of quarterly operating costs are shown in the tables below:
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Q4 operating costs
| EURm | Costs Q4 2018 | Share of costs Q4 2018 | Share of Revenue Q4 2018 | Costs Q4 2017 | Share of costs Q4 2017 | Share of Revenue Q4 2017 | Growth | Growth local currency | Organic growth local currency |
|---|---|---|---|---|---|---|---|---|---|
| Cost of sales | 42,570 | 53.7% | 33.0% | 35.732 | 52.2% | 31.3% | 19.1% | 18.8% | 18.8% |
| Research and development costs | 19,214 | 24.3% | 14.9% | 17.681 | 25.8% | 15.5% | 8.7% | 8.8% | 8.8% |
| Sales and marketing costs | 12,362 | 15.6% | 9.6% | 9.821 | 14.4% | 8.6% | 25.9% | 24.4% | 24.4% |
| Administrative expenses | 5,053 | 6.4% | 3.9% | 5.184 | 7.6% | 4.5% | -2.5% | -2.4% | -2.4% |
| Total operating cost | 79,199 | 100.0% | 61.4% | 68.418 | 100.0% | 59.9% | 15.8% | 15.4% | 15.4% |
FY operating costs
| EUR'000 | Costs 2018 | Share of costs 2018 | Share of Revenue 2018 | Costs 2017 | Share of costs 2017 | Share of Revenue 2017 | Growth | Growth local currency | Organic growth local currency |
|---|---|---|---|---|---|---|---|---|---|
| Cost of sales | 148,786 | 53.1% | 38.9% | 132.528 | 52.0% | 38.6% | 12.3% | 14.0% | 11.4% |
| Research and development costs | 69,879 | 24.9% | 18.3% | 64.797 | 25.4% | 18.9% | 7.8% | 8.2% | 3.6% |
| Sales and marketing costs | 40,971 | 14.6% | 10.7% | 37.198 | 14.6% | 10.8% | 10.1% | 12.1% | 10.7% |
| Administrative expenses | 20,864 | 7.4% | 5.4% | 20.199 | 8.0% | 5.9% | 3.3% | 3.8% | 0.3% |
| Total operating cost | 280,500 | 100.0% | 73.3% | 254.722 | 100.0% | 74.2% | 10.1% | 11.5% | 8.5% |
Employees
The average number of full-time employees increased by 9.4% from 1,421 in 2017 to 1,554 in 2018, of which 4.3%-points of the increase related to SimCorp Italiana. The number of employees (head-counts) were 1,660 at the end of 2018 compared with 1,547 at the end of 2017.
EBIT and EBIT margin
Q4 EBIT was EUR 50.8m against EUR 45.9m in Q4 last year. Currency rate fluctuations increased EBIT by EUR 0.8m in Q4 2018. EBIT margin was 39.4% compared with 40.2% in Q4 2017. When measured in local currencies, the EBIT margin was 39.1%.
For FY 2018, the Group generated an EBIT of EUR 103.3m compared with EUR 88.9m in 2017, an increase of EUR 14.4m. Exchange rate fluctuations had a negative net impact on EBIT of EUR 2.8m.
EBIT margin increased from 25.9% in 2017 to 27.0%. When measured in local currencies, the EBIT margin was 27.3% in 2018, with main drivers behind the improved margin being revenue growth, SimCorp Italiana contribution, and cost focus. The underlying organic EBIT margin was 26.9%.
Page 11 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
The currency and M&A impact on EBIT margin is shown below:
Q4 2018 EBIT margin
Q4 2017 EBIT margin
FY 2018 EBIT margin
FY 2017 EBIT margin
The development in quarterly EBIT is shown below:
EBIT
Page 12 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Profit and comprehensive income
In Q4 2018, share of profit after tax in associates of EUR 0.1m, financial income of EUR 0.3m and financial expenses of EUR 1.4m resulted in a net financial expense of EUR 1.0m compared with a net financial expense of EUR 0.3m in Q4 2017.
In Q4 2018, the Group realized a pre-tax profit of EUR 49.8m, against EUR 45.6m in Q4 2017, and a net profit of EUR 37.7m compared with EUR 35.4m in the same quarter last year.
In FY 2018, share of profit after tax in associates of EUR 0.1m, financial income of EUR 4.7m and financial expenses of EUR 5.6m resulted in a net financial expense of EUR 0.8m compared with a net financial expense of EUR 1.2m in 2017. Financial income and expenses are primarily related to foreign exchange adjustments.
In FY 2018, profit before tax was 2018 EUR 102.5m against EUR 87.7m in 2017. The tax charges for 2018 amounted to EUR 25.6m against EUR 21.2m in 2017. The effective tax rate was 24.9% compared with 24.2% in 2017.
In FY 2018, profit after tax was EUR 77.0m compared with EUR 66.5m in 2017. After foreign currency translation differences and other items of EUR -0.1m, the total comprehensive income amounted to EUR 76.9m against EUR 63.8m in 2017.
Balance sheet
SimCorp had total assets of EUR 270.3m at December 31, 2018 compared with EUR 230.6m at December 31, 2017. The increase is primary related to the increase in contract assets of EUR 35.7m, reflecting the accounting effect of signing new subscriptions agreements in the last 12 months, and an increase in cash holdings of EUR 16.1m.
Cash holdings amounted to EUR 47.5m compared with EUR 31.4m at December 31, 2017. The difference is mainly due to improved operating cash flow. No buyback program for treasury shares took place in 2018 due to cash required for repayment of the EUR 30.0m loan obtained in connection with the acquisition of SimCorp Italiana. The net cash position (cash holdings less borrowings) improved from EUR 1.4m at the end of December 2017 to EUR 47.5m.
Despite higher activity level, receivables decreased from EUR 86.1m at December 31, 2017 to EUR 79.2m, due to improved working capital management.
As a consequence of implementing IFRS 9 Financial Instruments with effect from January 1, 2018, SimCorp has made a provision of EUR 0.7m for expected credit loss related to contract assets and receivables at December 31, 2018. Since 2008, no actual losses have been incurred.
The Group's total non-current assets were EUR 4.9m lower compared with December 31, 2017, primarily due to the amortization of intangible assets.
Contract assets increased by EUR 35.7m compared with December 31, 2017, as new and additional subscription-based licenses added EUR 47.9m to contract assets in 2018, which exceeded invoiced subscription-based license fees of EUR 12.1m in 2018 and adjustments of EUR 0.1m.
Goodwill was EUR 27.9m at December 31, 2018 compared with EUR 28.0m at the end of 2017. No impairment to goodwill was made in 2018.
Page 13 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
The carrying amount of acquired software decreased by EUR 2.6m to EUR 5.1m and the value of client contracts decreased by EUR 1.1m to EUR 7.4m, primarily due to amortization.
Property, plant, and equipment amounted to EUR 5.4m against EUR 5.5m at the end of 2017. Deferred tax assets decreased by EUR 0.8m to EUR 2.3m.
SimCorp's total liabilities were EUR 101.2m at December 31, 2018, compared with EUR 114.0m a year earlier. The decrease is primarily related to the loan repayment of EUR 30.0m.
Cash flow
In Q4 2018, free cash flow (cash flow from operations reduced by CAPEX) was EUR 15.9m compared with EUR 15.2m in Q4 2017.
In FY 2018, operating activities generated a net cash inflow of EUR 82.2m against EUR 55.5m last year due to positive working capital development in receivables, prepayments from clients, and payables. Payment of income taxes amounted to EUR 22.3m, against EUR 14.9m in 2017.
In FY 2018, there was a net cash outflow of EUR 1.7m from investing activities compared with EUR 26.9m in 2017. Cash flow from investing activities included in 2017 a net payment of consideration for SimCorp Italiana of EUR 19.9m, and a deferred payment of EUR 2.9m related to the acquisition of SimCorp Coric in 2014.
In FY 2018, free cash flow was EUR 80.2m compared with EUR 51.3m in 2017.
Cash used in financial activities in 2018 was related to payment of dividends of EUR 34.4m and loan repayment of EUR 30.0m. Financial activities in 2017 included borrowings of EUR 30.0m relating to the acquisition of SimCorp Italiana, while payment of dividend and purchase of treasury shares reduced liquidity by EUR 58.3m.
Changes in equity
The Group's equity increased during the year from EUR 116.6m to EUR 169.1m. Comprehensive income amounted to EUR 76.9m against EUR 63.8m last year. The net effect of share-based payments related to restricted stock units was EUR 10.0m, compared with EUR 7.9m in 2017. Dividend payments of EUR 34.4m against EUR 33.2m last year, and in 2017 purchases of treasury shares of EUR 25.1m reduced equity by EUR 34.4m in 2018 compared with EUR 58.3m in 2017.
Page 14 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Outlook for the financial year 2019*
Based on the current business environment, the current pipeline, and SimCorp's market position, the expectations for 2019 are to grow revenue in local currencies by between 8% and 13% and to generate an EBIT margin measured in local currencies of between 25.5% and 28.5%.
SimCorp entered 2019 with signed revenue for the full year of EUR 240.7m – an increase of EUR 24.9m or 11.5% compared with the beginning of 2018.
Based on the exchange rates prevailing at the end of January 2019, SimCorp estimates reported revenue to be positively impacted from currency fluctuations by around 1%. The impact from currency fluctuations on reported EBIT margin is expected to be positive by around 0.2%-points.
For impacts of the adoption of IFRS 16 effective at January 1, 2019, please refer to page 22, or to Note 1 in Annual Report 2018.
- This announcement contains certain forward-looking statements and expectations in respect of the 2019 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 15 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 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 28-30 of SimCorp's Annual Report 2018 describe the most important general risk factors and the risk management measures utilized in everyday operations.
Shareholder information
Restricted stock units
In Q4 2018, 5,600 restricted stock units have been granted to 15 employees related to incentive programs. The restricted stock units will vest after three years, subject to continuing employment.
432,804 restricted stock units are outstanding at December 31, 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 December 31, 2018, the holding of treasury shares amounted to 917,718 treasury shares, equal to 2.3% of the Company's issued share capital. The total purchase value was EUR 46.4m with a market value of EUR 54.8m at December 31, 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 rent commitments are EUR 30.0m.
Page 16 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Signatures
The Board of Directors and the Executive Management Board have today considered and approved the Annual Report for 2018 of SimCorp A/S, including the audited consolidated financial statements. The Board of Directors and the Executive Management Board have also considered and approved this interim report for 2018.
The consolidated financial statements in the Annual Report 2018 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and further requirements according to the Danish Financial Statements Act.
The interim 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 report gives a true and fair view of the Group's assets, liabilities and financial position as of December 31, 2018, and of the profit of the Group's operations and cash flow for the period January 1 – December 31, 2018.
Furthermore, this interim report gives, together with what is disclosed in the Annual Report 2018, a description of the most material risks and uncertainties to which the Group is subject.
February 20, 2019
Executive Management Board:
Klaus Holse
Chief Executive Officer
Georg Hetrodt
Chief Product 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 17 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Consolidated income statement
| EUR '000 | 2018 | 2017 | 2018 | 2017 |
|---|---|---|---|---|
| Q4 | Q4 | FY | FY | |
| Revenue | 129,104 | 114,183 | 382,626 | 343,405 |
| Cost of sales | 42,570 | 35,732 | 148,786 | 132,528 |
| Gross profit | 86,534 | 78,451 | 233,840 | 210,877 |
| Other operating income | 943 | 102 | 1,219 | 211 |
| Research and development costs | 19,214 | 17,681 | 69,879 | 64,797 |
| Sales and marketing costs | 12,362 | 9,821 | 40,971 | 37,198 |
| Administrative expenses | 5,053 | 5,184 | 20,864 | 20,199 |
| Operating profit (EBIT) | 50,848 | 45,867 | 103,345 | 88,894 |
| Share of profit after tax in associates | 50 | 61 | 88 | 51 |
| Financial income | 276 | 770 | 4,694 | 3,425 |
| Financial expenses | 1,360 | 1,127 | 5,591 | 4,680 |
| Profit before tax | 49,814 | 45,571 | 102,536 | 87,690 |
| Tax on the profit for the period | 12,164 | 10,144 | 25,565 | 21,193 |
| Profit for the period | 37,650 | 35,427 | 76,971 | 66,497 |
| EARNINGS PER SHARE | ||||
| Earnings per share - EPS (EUR) | 0.95 | 0.89 | 1.95 | 1.69 |
| Diluted earnings per share - EPS-D (EUR) | 0.94 | 0.88 | 1.93 | 1.67 |
Statement of comprehensive income
| EUR '000 | 2018 | 2017 | 2018 | 2017 |
|---|---|---|---|---|
| Q4 | Q4 | FY | FY | |
| Profit for the period | 37,650 | 35,427 | 76,971 | 66,497 |
| Other comprehensive income | ||||
| Items that will not be reclassified subsequently to the income statement: | ||||
| Remeasurements of defined benefit plans | 186 | -113 | 181 | -113 |
| Tax | -39 | 33 | -39 | 33 |
| Items that may be reclassified subsequently to the income statement, when specific conditions are met: | ||||
| Foreign currency translation differences for foreign operations | -489 | -521 | -239 | -2,663 |
| Other comprehensive income after tax | -342 | -601 | -97 | -2,743 |
| Total comprehensive income | 37,308 | 34,826 | 76,874 | 63,754 |
Page 18 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Consolidated balance sheet
| EUR '000 | 2018 | 2017 |
|---|---|---|
| FY | FY | |
| ASSETS | ||
| Goodwill | 27,937 | 28,009 |
| Software | 5,139 | 7,777 |
| Client contracts | 7,368 | 8,470 |
| Total intangible assets | 40,444 | 44,256 |
| Leasehold improvements | 3,105 | 3,295 |
| Technical equipment | 1,476 | 1,277 |
| Other equipment, fixtures, fittings and prepayments | 796 | 956 |
| Total property, plant, and equipment | 5,377 | 5,528 |
| Investments in associates | 723 | 854 |
| Deposits | 1,983 | 1,995 |
| Deferred tax | 2,328 | 3,123 |
| Total other non-current assets | 5,034 | 5,972 |
| Total non-current assets | 50,855 | 55,756 |
| Receivables | 79,165 | 86,080 |
| Contracts assets | 85,684 | 49,946 |
| Income tax receivables | 978 | 1,387 |
| Prepayments | 6,085 | 6,035 |
| Cash and cash equivalents | 47,500 | 31,412 |
| Total current assets | 219,412 | 174,860 |
| Total assets | 270,267 | 230,616 |
| LIABILITIES AND EQUITY | ||
| Share capital | 5,441 | 5,467 |
| Share premium | 9,963 | 9,963 |
| Exchange adjustment reserve | -3,409 | -3,170 |
| Retained earnings | 121,130 | 69,751 |
| Proposed dividend | 35,934 | 34,570 |
| Total equity | 169,059 | 116,581 |
| Deferred tax | 11,728 | 8,514 |
| Provisions | 8,258 | 8,025 |
| Total non-current liabilities | 19,986 | 16,539 |
| Bank loan | - | 30,000 |
| Prepayments from clients | 17,704 | 11,969 |
| Trade payables and other payables | 59,675 | 50,358 |
| Income tax payables | 3,117 | 4,976 |
| Provisions | 726 | 193 |
| Total current liabilities | 81,222 | 97,496 |
| Total liabilities | 101,208 | 114,035 |
| Total liabilities and equity | 270,267 | 230,616 |
Page 19 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Consolidated cash flow statement
| EUR '000 | 2018 Q4 | 2017 Q4 | 2018 FY | 2017 FY |
|---|---|---|---|---|
| Profit for the period | 37,650 | 35,427 | 76,971 | 66,497 |
| Adjustments for non-cash operating items | 16,420 | 13,303 | 41,675 | 33,905 |
| Changes in contract assets | -24,793 | -9,656 | -35,738 | -21,922 |
| Changes in working capital | -247 | -14,402 | 21,917 | -7,931 |
| Cash from operating activities before financial items | 29,030 | 24,672 | 104,825 | 70,549 |
| Financial income received | 100 | -54 | 136 | 180 |
| Financial expenses paid | -263 | -91 | -465 | -299 |
| Income tax paid | -11,893 | -8,806 | -22,281 | -14,898 |
| Net cash from operating activities | 16,974 | 15,721 | 82,215 | 55,532 |
| Deferred payment, purchase of subsidiaries | - | - | - | -2,931 |
| Purchase of subsidiaries | - | - | - | -19,851 |
| Proceeds from sale of share of associates | 285 | - | 285 | - |
| Purchase of intangible fixed assets | -80 | -228 | -112 | -1,362 |
| Purchase of property, plant, and equipment | -1,027 | -609 | -1,950 | -3,162 |
| Proceeds from sale of property, plant, and equipment | - | 300 | - | 309 |
| Purchase of financial assets | -20 | -20 | -45 | -123 |
| Proceeds from sale of financial assets | - | 70 | 59 | 104 |
| Dividends from associates | - | - | 43 | 86 |
| Net cash used in investing activities | -842 | -487 | -1,720 | -26,930 |
| Net cash from operating and investing activities | 16,132 | 15,234 | 80,495 | 28,602 |
| Dividends paid | 126 | 37 | -34,444 | -33,235 |
| Purchase of treasury shares | - | -5,495 | - | -25,059 |
| Proceeds, loans | - | - | - | 30,000 |
| Repayment, loans | -10,000 | - | -30,000 | - |
| Net cash used in financing activities | -9,874 | -5,458 | -64,444 | -28,294 |
| Change in cash and cash equivalents | 6,258 | 9,776 | 16,051 | 308 |
| Cash and cash equivalents at beginning of period | 41,305 | 21,764 | 31,412 | 31,590 |
| Foreign exchange adjustment of cash and cash equivalents | -63 | -128 | 37 | -486 |
| Cash and cash equivalents end of period | 47,500 | 31,412 | 47,500 | 31,412 |
Page 20 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Statement of changes in equity
| EUR '000 | Share capital | Share premium | Exchange adjustment reserve | Retained earnings | Proposed dividends for the year | Total |
|---|---|---|---|---|---|---|
| 2018 | ||||||
| Equity at January 1 | 5,467 | 9,963 | -3,170 | 69,751 | 34,570 | 116,581 |
| Net profit for the year | - | - | - | 76,971 | - | 76,971 |
| Total other comprehensive income | - | - | -239 | 142 | - | -97 |
| Total comprehensive income for the year | - | - | -239 | 77,113 | - | 76,874 |
| Transactions with owners | ||||||
| Cancellation of treasury shares | -26 | - | - | 26 | - | - |
| Dividends paid to shareholders | - | - | - | 126 | -34,570 | -34,444 |
| Share-based payment | - | - | - | 9,305 | - | 9,305 |
| Tax, share-based payment | - | - | - | 743 | - | 743 |
| Proposed dividends to shareholders | - | - | - | -35,934 | 35,934 | - |
| Equity at December 31 | 5,441 | 9,963 | -3,409 | 121,130 | 35,934 | 169,059 |
| 2017 | ||||||
| Equity at January 1 as previously reported | 5,575 | - | -518 | 34,173 | 33,341 | 72,571 |
| Adjustment related to IFRS 15 | - | - | - | 27,641 | - | 27,641 |
| Tax, adjustment related to IFRS 15 | - | - | - | -6,949 | - | -6,949 |
| Adjusted balance at January 1 | 5,575 | - | -518 | 54,865 | 33,341 | 93,263 |
| Net profit for the year | - | - | - | 66,497 | - | 66,497 |
| Total other comprehensive income | - | - | -2,663 | -80 | - | -2,743 |
| Total comprehensive income for the year | - | - | -2,663 | 66,417 | - | 63,754 |
| Transactions with owners | ||||||
| Issue of shares | 26 | 9,963 | 11 | - | - | 10,000 |
| Cancellation of treasury shares | -134 | - | - | 134 | - | - |
| Dividends paid to shareholders | - | - | - | 106 | -33,341 | -33,235 |
| Share-based payment | - | - | - | 7,551 | - | 7,551 |
| Tax, share-based payment | - | - | - | 307 | - | 307 |
| Purchase of treasury shares | - | - | - | -25,059 | - | -25,059 |
| Proposed dividends to shareholders | - | - | - | -34,570 | 34,570 | - |
| Equity at December 31 | 5,467 | 9,963 | -3,170 | 69,751 | 34,570 | 116,581 |
Page 21 of 23
Company Announcement
SimCorp reports revenue growth of 11% and EBIT margin of 27% for 2018
Notes to the financial statements
Accounting policies
The financial 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 2018. See the Annual Report 2018 for a comprehensive description of the accounting policies applied.
New financial reporting standards not yet adopted
IFRS 16 Leases becomes effective January 1, 2019. All leases must be recognized in the balance sheet with a corresponding lease liability, except for short-term assets and minor assets.
The Group plans to apply the standard using the modified retrospective approach with optional practical expedients initially on January 1, 2019. The cumulative effect of adopting IFRS 16 will be recognized as an adjustment to the opening balance of retained earnings at January 1, 2019, with no restatement of comparative information.
The estimated impact of adoption is based on assessments undertaken to date. The impact on the financial position as at January 1, 2019 is expected to be right of use assets for land and buildings of EUR 46.5m, other right of use assets of EUR 2.5m, and a reduction in prepayments of EUR 0.6m, i.e. total assets is expected to increase EUR 48.4m. Total liabilities will increase by EUR 47.6m, current liabilities with EUR 7.6m and non-current liabilities with EUR 40.0m. Retained earnings will be impacted with EUR 0.8m.
The impact on the income statement in 2019 is estimated to be a reduction in rental costs of EUR 9.3m and an increase in amortization of EUR 9.4m, hence no material impact on EBIT. Impact on interest expenses is expected to be around EUR 0.6m. ROIC is expected to be impacted negatively by around 27 percentage-points. Equity ratio is expected to be negatively impacted by around 8 percentage-points. See the Annual Report 2018 for further details.
Events after December 31, 2018
No significant events have occurred after the balance sheet date that affect the financial report.
Page 22 of 23
Company Announcement
SimCorp reports revenue growth of
11\%
and EBIT margin of
27\%
for 2018
Segment information
| EUR 2020 | UK, Northern Europe and Middle East | Central Europe | Southern Europe | Asia and Australia | North America | Research and development | SimCorp Cons | SimCorp Sofie* | Segments total | Corporate Functions | Elimination/ Not allocated | Group |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| October - December 2018 | ||||||||||||
| External revenue | 38,488 | 29,092 | 13,548 | 7,843 | 33,955 | 262 | 2,580 | 3,258 | 129,026 | 78 | - | 129,104 |
| Revenue between segments | 3,961 | 76 | 204 | -896 | 998 | 86,098 | 418 | 436 | 91,295 | 1,438 | -92,733 | - |
| Total segment revenue | 42,449 | 29,168 | 13,752 | 6,947 | 34,953 | 86,360 | 2,998 | 3,694 | 220,321 | 1,516 | -92,733 | 129,104 |
| EBITDA | 4,703 | 1,369 | 5,289 | 83 | 1,819 | 40,614 | 934 | 479 | 55,290 | -1,971 | - | 53,319 |
| Depreciation and amortization | 114 | 13 | 41 | 15 | 89 | 27 | 144 | 326 | 769 | 1,702 | - | 2,471 |
| Segment operating profit (EBIT) | 4,589 | 1,356 | 5,248 | 68 | 1,730 | 40,587 | 790 | 153 | 54,521 | -3,673 | - | 50,848 |
| 2018 | ||||||||||||
| External revenue | 129,589 | 80,512 | 44,453 | 20,253 | 81,148 | 1,106 | 6,899 | 18,109 | 382,069 | 557 | - | 382,626 |
| Revenue between segments | 22,022 | 6,895 | 949 | 390 | 4,271 | 164,164 | 1,606 | 995 | 201,292 | 6,155 | -207,447 | - |
| Total segment revenue | 151,611 | 87,407 | 45,402 | 20,643 | 85,419 | 165,270 | 8,505 | 19,104 | 583,361 | 6,712 | -207,447 | 382,626 |
| EBITDA | 13,765 | 6,296 | 3,021 | 1,151 | 5,581 | 85,633 | 776 | 6,944 | 123,167 | -13,899 | - | 109,268 |
| Depreciation and amortization | 433 | 40 | 165 | 56 | 347 | 118 | 574 | 1,308 | 3,041 | 2,882 | - | 5,923 |
| Segment operating profit (EBIT) | 13,332 | 6,256 | 2,856 | 1,095 | 5,234 | 85,515 | 202 | 5,636 | 120,126 | -16,781 | - | 103,345 |
| Total assets | 52,916 | 23,611 | 20,431 | 21,426 | 61,892 | 1,420 | 17,985 | 46,505 | 246,186 | 4,813 | 19,268 | 270,267 |
| October - December 2017 | ||||||||||||
| External revenue | 32,500 | 25,407 | 15,713 | 16,050 | 16,603 | 244 | 3,739 | 3,783 | 114,039 | 144 | - | 114,183 |
| Revenue between segments | 10,703 | 2,706 | 611 | 640 | 1,435 | 58,653 | 282 | 221 | 75,251 | 712 | -75,963 | - |
| Total segment revenue | 43,203 | 28,113 | 16,324 | 16,690 | 18,038 | 58,897 | 4,021 | 4,004 | 109,290 | 856 | -75,963 | 114,183 |
| EBITDA | 1,085 | 1,182 | -873 | 39 | 2,628 | 41,349 | 1,590 | 816 | 47,816 | -747 | - | 47,069 |
| Depreciation and amortization | 117 | 15 | 41 | 10 | 85 | 28 | 141 | 332 | 769 | 433 | - | 1,202 |
| Segment operating profit (EBIT) | 968 | 1,167 | -914 | 29 | 2,543 | 41,321 | 1,449 | 484 | 47,047 | -1,180 | - | 45,867 |
| 2017 | ||||||||||||
| External revenue | 120,638 | 75,041 | 37,796 | 30,585 | 60,710 | 1,250 | 10,903 | 5,785 | 342,708 | 697 | - | 343,405 |
| Revenue between segments | 27,993 | 9,379 | 761 | 2,081 | 5,476 | 143,055 | 1,193 | 345 | 190,283 | 3,060 | -193,343 | - |
| Total segment revenue | 148,631 | 84,420 | 38,557 | 32,666 | 66,186 | 144,305 | 12,096 | 6,130 | 532,991 | 3,757 | -193,343 | 343,405 |
| EBITDA | 11,141 | 5,246 | -383 | 1,078 | 4,677 | 73,933 | 5,025 | 1,060 | 101,777 | -8,926 | - | 92,851 |
| Depreciation and amortization | 450 | 45 | 176 | 52 | 277 | 118 | 572 | 551 | 2,241 | 1,716 | - | 3,957 |
| Segment operating profit (EBIT) | 10,691 | 5,201 | -559 | 1,026 | 4,400 | 73,815 | 4,453 | 509 | 99,536 | -10,642 | - | 88,884 |
| Total assets | 42,623 | 20,670 | 27,918 | 17,628 | 38,715 | 2,858 | 24,266 | 47,026 | 221,704 | 4,688 | 4,224 | 230,616 |
- SimCorp Sofia was acquired on 1 August 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 | 2018 | 2017 | |
|---|---|---|---|---|
| EUR 2020 | Q4 | Q4 | 29 | 29 |
| Segment operating profit (EBIT) | 50,843 | 45,887 | 103,345 | 88,894 |
| Share of profit after tax on associates | 14 | 83 | 88 | 55 |
| Financial income | 276 | 770 | 4,694 | 3,425 |
| Financial expenses | 1,360 | 1,127 | 3,291 | 4,685 |
| Profit for the year before tax | 49,814 | 45,571 | 102,536 | 87,690 |
Page 23 of 23