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SimCorp Interim / Quarterly Report 2021
3384_rns_2022-02-15_5bc66402-9cd1-4136-ae2c-421dffc818ee.pdf
Interim / Quarterly Report
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SimCorp
Company reg. no: 15 50 52 81
Company Announcement no. 1/2022
February 15, 2022
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Q4 2021 highlights:
- Reported revenue was EUR 160.2m, an increase of 9.6% compared with Q4 2020. Measured in local currencies, organic revenue increase by 7.3% when compared with Q4 2020.
- EBIT was EUR 54.3m and EBIT margin was 33.9% compared with EBIT of EUR 58.4m and EBIT margin of 40.0% in Q4 2020.
- In Q4 2021, one new SimCorp Dimension and one new stand-alone SimCorp Coric deal were signed, and we welcomed three new clients through our existing outsourcing clients.
- In Q4 2021, a large number of significant deals were signed with existing clients.
- Order intake was EUR 67.0m, an increase of EUR 10.4m compared with Q4 2020.
FY 2021 highlights:
- Reported revenue was EUR 496.3m, an increase of 8.8% compared with 2020. Measured in local currencies, organic revenue increased by 8.7% when compared with 2020 in line with the financial guidance given.
- Annual Recurring Revenue (ARR) for the last twelve months covering the period Q1 2021-Q4 2021 was EUR 277.4m, an increase of 10.5% when compared with the period Q1 2020-Q4 2020, and an increase of 10.4% when measured in local currencies.
- EBIT was EUR 132.4m compared with EUR 124.3m in 2020 and EBIT margin was 26.7% compared with 27.3% in 2020. Measured in local currencies, EBIT margin was 26.9% in line with the financial guidance given.
- In 2021, four new SimCorp Dimension and two new stand-alone SimCorp Coric deals were signed, and we welcomed three new clients through our existing outsourcing clients. Since the end of 2021, we have signed one new SimCorp Dimension and one new stand-alone SimCorp Sofia deal.
- Order intake was EUR 137.6m compared with EUR 115.1m in 2020. The increase was primarily due to several significant deals signed with existing clients.
- At December 31, 2021, the order book amounted to EUR 73.0m, an increase of EUR 16.9m when compared with the order book at December 31, 2020. The increase was primarily due to signing four new Datacare deals.
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
- In 2021, we added eight new SimCorp Dimension as a Service clients, bringing the total number of SimCorp Dimension clients on a hosted solution to 34, and total number of as a service clients on a hosted solution above 50.
- Net profit was EUR 110.0m compared with EUR 88.3m in 2020.
- Free cash flow was EUR 78.6m, a decrease of EUR 13.2m when compared with 2020. The decrease was primarily due to a one-off payment following a change in the Danish Holiday Act and postponed payments from 2020 to 2021 of income taxes and social charges offered under government COVID-19 related support schemes.
- The net cash position was EUR 47.7m compared with EUR 53.1m at year-end 2020.
- Total assets were EUR 526.3m at December 31, 2021 compared with EUR 470.8m at yearend 2020.
- SimCorp entered 2022 with EUR 323.2m of the full year's revenue signed, an improvement of EUR 34.0m or 11.8% compared with last year.
- The Board of Directors intends to recommend to shareholders at the Annual General Meeting 2022 that dividends of EUR 39.9m be declared at the rate of DKK 7.50 per share compared with DKK 7.50 last year, equivalent to 36% (2020: 45%) of profit for the year and 51% (2020: 44%) of free cash flow in 2021.
- In addition, provided there are no specific requirements for liquidity, SimCorp expects to initiate a new share buyback program in 2022. The intention is to purchase shares for EUR 40m over the next 10 months in two half yearly buy-back programs of EUR 20m each.
Financial guidance 2022:
- In 2022, SimCorp expects revenue to grow between 7% and 12%, Annual Recurring Revenue (ARR) to grow between 10% and 15%, and EBIT margin to be between 23.0% and 26.0%, all measured in local currencies.
- Included in the expected EBIT margin for 2022 is a negative short-term impact of around 2%-points from planned investments in the future, including investments in new SaaS operations and solutions, as well as a higher salary increase in 2022 compared with recent years. The extra demand driven investments in 2022 are expected to lead to additional revenue and higher EBIT margin in coming years.
Christian Kromann, SimCorp CEO comments: "SimCorp delivered a solid performance in 2021, while successfully progressing strategy implementation in line with our plan. We signed eight strategically significant SaaS deals, and achieved revenue growth of 8.8%, ARR growth of 10.5%, EBIT margin of 26.7%, and free cash flow of EUR 78.6m, despite COVID-19 challenges. 2021 showed continued progress in our transition to a truly global SaaS company, which will continue with investment in 2022 to ensure we position ourselves for the future with highly market-relevant capabilities and offerings."
Page 2 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Investor presentation
SimCorp's Executive Management Board will present the report at a conference call on Tuesday February 15, 2022 at 11:00am (CET). Please use any of the following phone numbers to dial in to the conference call:
From Denmark: +45 32720417
From USA: +1 6467413167
From other countries: +44 (0) 2071 928338
Pin code to access the call: 6646189
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/mmc/p/nr7aubfc
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.
Enquiries regarding this announcement should be addressed to:
Investor contacts:
Christian Kromann, Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 2810 9090)
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:
Tobias Brun-Falkencrone, Group Communications Director, SimCorp A/S (+45 2938 1284)
Mette Trier, Communications Principal, SimCorp A/S (+45 4060 8296)
Company Announcement no. 1/2022
Page 3 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Financial highlights and key ratios for the SimCorp Group
| EUR '000 | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Q4 | Q4 | FY | FY | |
| INCOME STATEMENT | ||||
| Revenue | 160,240 | 146,169 | 496,274 | 455,970 |
| Earnings before interest, tax, depreciation, and amortization (EBITDA) | 58,107 | 62,428 | 147,795 | 140,390 |
| Operating profit (EBIT) | 54,322 | 58,408 | 132,417 | 124,296 |
| Financial items, net | 2,165 | -3,518 | 5,001 | -8,200 |
| Profit before tax | 56,487 | 54,890 | 137,418 | 116,096 |
| Profit for the period | 48,482 | 42,579 | 109,992 | 88,258 |
| BALANCE SHEET | ||||
| Share capital | 5,441 | 5,441 | 5,441 | 5,441 |
| Total equity | 323,107 | 278,250 | 323,107 | 278,250 |
| Intangible assets | 92,691 | 95,725 | 92,691 | 95,725 |
| Property, plant, and equipment | 43,692 | 47,650 | 43,692 | 47,650 |
| Receivables | 96,543 | 82,513 | 96,543 | 82,513 |
| Contract assets | 221,000 | 175,928 | 221,000 | 175,928 |
| Cash and cash equivalents | 47,692 | 53,051 | 47,692 | 53,051 |
| Total assets | 526,312 | 470,842 | 526,312 | 470,842 |
| CASH FLOW | ||||
| Net cash from operating activities | 1,836 | 24,774 | 90,696 | 104,565 |
| Net cash used in investing activities | -4,600 | -482 | -5,675 | -2,681 |
| Net cash used in financing activities | -10,754 | -2,961 | -90,996 | -80,242 |
| Free cash flow | -1,204 | 21,299 | 78,628 | 91,809 |
| Investment in property, plant, and equipment | 282 | 483 | 1,259 | 2,399 |
| Change in cash and cash equivalents | -13,518 | 21,331 | -5,975 | 21,642 |
| EMPLOYEES | ||||
| Number of employees at the end of the period | 1,998 | 1,901 | 1,998 | 1,901 |
| Average number of employees - FTE | 1,926 | 1,837 | 1,871 | 1,840 |
| FINANCIAL RATIOS | ||||
| EBIT margin (%) | 33.9 | 40.0 | 26.7 | 27.3 |
| ROIC (return on invested capital) (%) | 73.1 | 86.6 | 44.7 | 46.6 |
| Receivables turnover ratio | 11.5 | 11.2 | 8.9 | 8.7 |
| Equity ratio (%) | 61.4 | 59.1 | 61.4 | 59.1 |
| Return on equity (%) | 64.4 | 66.6 | 35.4 | 33.4 |
| SHARE PERFORMANCE | ||||
| Earnings per share - EPS (EUR) | 1.23 | 1.07 | 2.76 | 2.22 |
| Diluted earnings per share - EPS-D (EUR) | 1.22 | 1.07 | 2.74 | 2.20 |
| Cash flow per share - CFPS (EUR) | 0.05 | 0.62 | 2.27 | 2.64 |
| NUMBER OF SHARES | ||||
| Average number of shares (m) | 39.6 | 39.6 | 39.7 | 39.7 |
| Average number of shares - diluted (m) | 40.0 | 40.0 | 40.0 | 40.0 |
| EUR/DKK rate of exchange at end of period | 7.4365 | 7.4393 | 7.4365 | 7.4393 |
Please refer to the definition of key ratios on page 67 of the Annual Report 2021.
This interim report is unaudited and has not been reviewed by external auditors, for audited financial statements please refer to the comprehensive Annual Report 2021.
Page 4 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Management's report
Development in sales and orders
Total order intake in Q4 2021 was EUR 67.0m compared with EUR 56.6m in the same period last year.
The strong commitment from our clients to our strategic journey, which in Q3 2021 was proven by two significant deals signed with existing clients, continued into Q4 2021. In the last quarter of the year, we entered into a large number of significant deals with existing clients, which led to an order intake with existing clients in Q4 2021 of EUR 50.5m.
In Q4 2021, there were five conversions from perpetual to subscription-based licenses compared with two conversions in Q4 2020. The conversions in Q4 2021 increased order intake by EUR 16.7m compared with EUR 9.2m in Q4 2020.
In Q4 2021, we signed one new SimCorp Dimension and one new stand-alone SimCorp Coric deal.
In Q4 2021, we also welcomed three new clients through three of our existing outsourcing clients.
In FY 2021, order intake was EUR 137.6m compared with EUR 115.1m in the same period last year. Datacare order intake accounted for EUR 17.5m in 2021 compared with EUR 12.9m in 2020.
In FY 2021, there were eight conversions from perpetual to subscription-based licenses compared with five conversions in 2020. The conversions in FY 2021 increased order intake by EUR 32.6m compared with EUR 18.1m in 2020.
A total of four new SimCorp Dimension license contracts and two new stand-alone SimCorp Coric were signed during this year. In FY 2021, we also welcomed three new clients through three of our existing outsourcing clients. In comparison, a total of 12 new SimCorp Dimension license contracts and five new stand-alone SimCorp Coric license contracts were signed in 2020.
On December 31, 2021, the order book amounted to EUR 73.0m, an increase of EUR 16.9m compared with same date last year. Compared with September 30, 2021, the order book increased by EUR 12.5m. Datacare order book accounted for EUR 29.9m on December 31, 2020 compared with EUR 13.8m at the same time last year, as four SimCorp Datacare solutions were sold to existing SimCorp Dimension clients or as part of a new SimCorp Dimension deal. CDD order book accounted for EUR 12.8m on December 31, 2020 compared with EUR 13.9m at the same time last year.
In 2021, we added eight new SimCorp Dimension as a Service clients, bringing the total number of SimCorp Dimension clients on a hosted solution to 34. Five out of the eight new SimCorp Dimension as a Service clients were existing clients moving from an on-premise to a hosted solution. Seven of the 34 as a Service clients had signed up for our newly launched SimCorp Dimension solution hosted by Microsoft Azure, of which three are existing clients moving from an on-premise to a hosted solution. At the end of 2021, we also have 18 SimCorp Coric as a Service clients and 12 SimCorp Gain as a Service clients on a hosted solution. Some clients have both Dimension, Coric and Gain and in total, we have more than 50 as a Service clients on a hosted solution.
Page 5 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
SimCorp licenses, quarterly order intake and order book*
* Order intake and order book include initial licenses to new clients as well as additional licenses to existing clients. The order book is the total license value of signed license agreements, including Client-Driven Development (CDD) orders, that have not yet been recognized in income, and the order book includes subscription services such as Digital Engagement Portal, Datacare, and Regulatory Reporting Platform (RRP) that are recognized over the term of the subscription service.
Financial expectations and results FY 2021
In the 2020 Annual Report, SimCorp announced FY 2021 expectations for revenue growth measured in local currencies of between 6% and 11% and an EBIT margin measured in local currencies of between 24.5% and 27.5%. No changes to the 2021 expectations were made throughout the year, and the revenue growth measured in local currencies of 8.7% and EBIT margin measured in local currencies of 26.9% achieved in 2021 were both in line with the financial guidance given.
Revenue
Q4 2021 revenue of EUR 160.2m increased by 9.6% relative to Q4 2020. Measured in local currencies the increase was 7.3%.
SimCorp generated revenue of EUR 496.3m in FY 2021 compared with EUR 456.0m in FY 2020, equivalent to an increase of 8.8%. Exchange rate fluctuations for the period had a small positive impact on revenue of 0.1%. Measured in local currencies, revenue thus increased organically by 8.7%.
The currency and M&A impact on revenue growth are shown below:
Page 6 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Q4 2021 revenue growth
Q4 2020 revenue growth
FY 2021 revenue growth
FY 2020 revenue growth
The development and distribution of quarterly revenue are shown below:
Revenue
Page 7 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Q4 revenue
| EURm | Revenue Q4 2021 | Share of revenue Q4 2021 | Revenue Q4 2020 | Share of revenue Q4 2020 | Revenue growth | Revenue growth local currency |
|---|---|---|---|---|---|---|
| Licenses - initial sales | 2.9 | 1.9% | 9.3 | 6.4% | -68.8% | -70.0% |
| Licenses - additional sales | 48.4 | 30.2% | 33.1 | 22.7% | 46.2% | 44.4% |
| Software updates and support | 45.6 | 28.4% | 44.5 | 30.4% | 2.4% | 0.4% |
| Professional services | 50.8 | 31.7% | 43.7 | 29.9% | 16.1% | 12.9% |
| Hosting and other fees | 12.6 | 7.8% | 15.6 | 10.6% | -18.9% | -21.4% |
| Total revenue | 160.2 | 100.0% | 146.2 | 100.0% | 9.6% | 7.3% |
FY revenue
| EURm | Revenue 2021 | Share of revenue 2021 | Revenue 2020 | Share of revenue 2020 | Revenue growth | Revenue growth local currency |
|---|---|---|---|---|---|---|
| Licenses - initial sales | 21.5 | 4.3% | 22.4 | 4.9% | -3.7% | -1.6% |
| Licenses - additional sales | 92.5 | 18.6% | 69.2 | 15.2% | 33.7% | 32.8% |
| Software updates and support | 179.4 | 36.1% | 176.6 | 38.7% | 1.6% | 1.4% |
| Professional services | 167.9 | 33.9% | 154.7 | 33.9% | 8.5% | 8.7% |
| Hosting and other fees | 35.0 | 7.1% | 33.1 | 7.3% | 5.6% | 5.0% |
| Total revenue | 496.3 | 100.0% | 456.0 | 100.0% | 8.8% | 8.7% |
In Q4 2021, SimCorp had initial license sales of EUR 2.9m, EUR 6.4m lower than in Q4 2020, due to fewer deals. Additional license sales of EUR 48.4m in Q4 2021 was, however, EUR 15.2m higher than in Q4 2020. Revenue recognized from initial and additional license sales totaled EUR 51.3m, EUR 8.9m or 20.9% higher than in Q4 2020.
In FY 2021, SimCorp had initial license sales of EUR 21.5m, EUR 0.9m lower than in 2020, due to fewer, but on average larger, deals. Additional license sales of EUR 92.5m in FY 2021 were, however, EUR 23.3m higher than in 2020. Revenue recognized from initial and additional license sales totaled EUR 114.0m, EUR 22.5m or 24.6% higher than in 2020. Currency fluctuations impacted total license fee positively by 0.2%. Measured in local currencies, the organic increase was 24.4%.
In Q4 2021, there were five conversions from perpetual to subscription-based license contracts (Q4 2020: two conversions), which accounted for 31% (Q4 2020: 39%) of the total additional license sales. Renewals accounted for 8% (Q4 2020: 5%) of additional sales, and additional regular license sales accounted for 61% (Q4 2020: 56%) of total additional license sales.
In FY 2021, revenue from eight conversions (2020: five conversions) accounted for 30% (FY 2020: 27%) of the total additional license sales, while renewals accounted for 20% (FY 2020: 18%), and additional regular license sales accounted for 50% (FY 2020: 55%) of total additional license sales.
The split of additional license sales is shown below:
Page 8 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Q4 2021 additional license sales split
- Additional regular license sales
- Renewals
- Conversions
Q4 2020 additional license sales split
- Additional regular license sales
- Renewals
- Conversions
FY 2021 additional license sales split
- Additional regular license sales
- Renewals
- Conversions
FY 2020 additional license sales split
- Additional regular license sales
- Renewals
- Conversions
For the FY 2021, the additional order intake was positively impacted by EUR 32.6m from eight clients converting their perpetual contracts to subscription-based license contracts (2020: EUR 18.1m from five clients). Additional license revenue was positively impacted by EUR 27.9m (2020: EUR 18.9m). For the eight clients converting in 2021, the annual subscription-based payments will be slightly higher than the software updates and support fee under the perpetual contracts due to the sale of additional functionality in connection with the conversions, but the annual software updates and support fees will be around EUR 6m (2020: EUR 3m) lower, as the subscription license revenue is recognized on contract completion under IFRS 15.
Three clients canceled SimCorp Dimension contracts in 2021. In addition, four SimCorp Gain licenses were canceled. The annual software updates and support fee for the canceled contracts amounted to EUR 1.8m, equivalent to 0.4%-points of 2021 revenue compared with EUR 3.0m in 2020, equivalent to 0.7% points of 2020 revenue.
In Q4 2021, software updates and support revenue increased by 2.4% from EUR 44.5m in Q4 2020 to EUR 45.6m. Currency fluctuations impacted the software updates and support revenue positively by 2.0%-points. Consequently, organic growth for Q4 in software updates and support revenue was 0.4%.
Page 9 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
In FY 2021, software updates and support revenue increased by 1.6% from EUR 176.6m for the same period last year to EUR 179.4m. Currency fluctuations impacted the software updates and support revenue positively by 0.2%-points. Consequently, organic growth for FY in software updates and support revenue was 1.4%.
Fees from professional services amounted to EUR 50.8m in Q4 2021 compared with EUR 43.7m in Q4 2020, an increase of 16.1% in reported currency. Currency fluctuations impacted the revenue positively by 3.2%-points, resulting in an organic growth of 12.9%.
In FY 2021, fees from professional services increased by 8.5% from EUR 154.7m last year to EUR 167.9m. Currency fluctuations decreased the professional services revenue by 0.2%. Consequently, organic growth in professional services revenue was 8.7%.
Hosting and selling of other third-party products amounted to EUR 12.6m compared with EUR 15.6m in Q4 2020. The reported decline in revenue was due to lower sale of third-party products in Q4 2021 compared with Q4 2020, while fees from clients on a hosted SaaS (Software as a Service) solution were higher than in Q4 2020.
In FY 2021, hosting and selling of other third-party products amounted to EUR 35.0m compared with EUR 33.1m in FY 2020.
Annual Recurring Revenue (ARR) for the last twelve months covering the period Q1 2021-Q4 2021 was EUR 277.4m, an increase of 10.5% when compared with the period Q1 2020-Q4 2020, and an organic increase of 10.4% when measured in local currencies.
| EURm | Share of total revenue | Organic/local currencies | |||||
|---|---|---|---|---|---|---|---|
| Q4 2021 LTM | Q4 2021 LTM | Q4 2020 LTM | Q4 2020 LTM | Growth | growth | ||
| Annual Recurring Revenue | 277.4 | 55.9% | 250.9 | 55.0% | 10.5% | 10.4% |
LTM - Last Twelve Months
ARR of EUR 277.4m was equivalent to 55.9% of revenue for the period Q1 2021-Q4 2021 compared with ARR of EUR 250.9m, equivalent to 55.0% of revenue, for the period Q1 2020 to Q4 2020.
Operating costs
SimCorp's total operating costs (including depreciation and amortization) were EUR 106.2m in Q4 2021 compared with EUR 87.8m in Q4 2020, an increase of 20.9% in reported currency. Measured in local currencies, operating costs increased by 17.7%. The increase in operating costs was primarily a result of increased hosting and salary costs, and also due to a very low level of administrative expenses in Q4 2020.
In FY 2021, the total operating costs (including depreciation and amortization) increased by 9.6% from EUR 332.5m in 2020 to EUR 364.6m. Currency fluctuations increased the total operating costs by 0.4%. Measured in local currencies, the operating costs increased by 9.2% compared with 2020. The increase in operating costs was primarily a result of increased hosting and salary costs.
Page 10 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
The increase in costs of sales and decrease in research and development costs in both Q4 2021 and FY 2021 were partly due to an internal restructuring made in Q2 2021 moving staff from product division to customer support.
In FY 2021, 70% of SimCorp's total operating costs were directly related to employees, compared with 74% in FY 2020.
The development and distribution of quarterly operating costs are shown in the tables below:
Operating costs
Q4 operating costs
| EURm | Costs Q4 2021 | Share of costs Q4 2021 | Share of revenue Q4 2021 | Costs Q4 2020 | Share of costs Q4 2020 | Share of revenue Q4 2020 | Growth | Growth local currency |
|---|---|---|---|---|---|---|---|---|
| Cost of sales | 55.7 | 52.5% | 34.8% | 44.7 | 50.9% | 30.6% | 24.7% | 20.9% |
| Research and development costs | 24.8 | 23.3% | 15.5% | 25.3 | 28.8% | 17.3% | -2.0% | -2.0% |
| Sales and marketing costs | 17.1 | 16.1% | 10.7% | 14.1 | 16.1% | 9.7% | 20.9% | 14.5% |
| Administrative expenses | 8.6 | 8.1% | 5.4% | 3.7 | 4.2% | 2.5% | 134.9% | 128.8% |
| Total operating cost | 106.2 | 100.0% | 66.3% | 87.8 | 100.0% | 60.1% | 20.9% | 17.7% |
Page 11 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
FY operating costs
| EURm | Costs 2021 | Share of costs 2021 | Share of revenue 2021 | Costs 2020 | Share of costs 2020 | Share of revenue 2020 | Growth | Growth local currency |
|---|---|---|---|---|---|---|---|---|
| Cost of sales | 197.0 | 54.0% | 39.7% | 167.4 | 50.3% | 36.7% | 17.7% | 17.3% |
| Research and development costs | 91.8 | 25.2% | 18.5% | 91.8 | 27.6% | 20.1% | -0.1% | -0.3% |
| Sales and marketing costs | 50.2 | 13.8% | 10.1% | 50.2 | 15.1% | 11.0% | 0.1% | -0.9% |
| Administrative expenses | 25.6 | 7.0% | 5.2% | 23.1 | 7.0% | 5.1% | 10.9% | 9.8% |
| Total operating cost | 364.6 | 100.0% | 73.5% | 332.5 | 100.0% | 72.9% | 9.6% | 9.2% |
Employees
The average number of full time employees increased by 1.7% from 1,840 in FY 2020 to 1,871 in FY 2021.
The number of employees (headcount) was 1,998 at the end of FY 2021 compared with 1,901 at the end of FY 2020, an increase of 97 employees.
Group performance
In Q4 2021, the Group posted EBIT of EUR 54.3 m compared with EUR 58.4m in Q4 2020. The reported EBIT margin was 33.9% compared with 40.0% in Q4 2020. When measured in local currencies, the EBIT margin was 33.5% in Q4 2021.
For FY 2021, the Group generated an EBIT of EUR 132.4 m compared with EUR 124.3m in FY 2020, an increase of EUR 8.1m. The reported EBIT margin was 26.7% compared with the EBIT margin of 27.3% in FY 2020. When measured in local currencies, the EBIT margin was 26.9% in 2021.
The currency and M&A impact on EBIT margin are shown below:
Q4 2021 EBIT margin
Q4 2020 EBIT margin
Page 12 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
FY 2021 EBIT margin
FY 2020 EBIT margin
The development in quarterly EBIT is shown below:
Profit and comprehensive income
Financial items for Q4 2021 comprised a net income of EUR 2.2m compared with a net expense of EUR 3.5m in the same period last year. Financial income and expenses were primarily related to foreign exchange adjustments.
In Q4 2021, the Group realized a pre-tax profit of EUR 56.5m, against EUR 54.9m in Q4 2020, and a net profit of EUR 48.5m compared with EUR 42.6m in the same quarter last year.
The estimated tax charge of EUR 8.0m in Q4 2021 was lower than the estimated tax of EUR 12.3m in Q4 2020, as Q4 2021 estimated tax was impacted by refunds of withholding taxes related to prior years.
Exchange rate adjustments on translation of foreign assets and liabilities and remeasurement of defined benefit plans amounted to a net income of EUR 2.3m in Q4 2021, which is included in other comprehensive income. Total comprehensive income amounted to EUR 50.8m against EUR 42.3m in Q4 2020.
Page 13 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Financial items for FY 2021 comprised a net income of EUR 5.0m compared with a net expense of EUR 8.2m in same period last year. The net financial income in FY 2021 as well as the net financial expense in FY 2020 were primarily related to foreign exchange adjustments.
Profit before tax was EUR 137.4m in FY 2021 against EUR 116.1m in FY 2020.
The estimated tax charges for FY 2021 amounted to EUR 27.4m against EUR 27.8m in FY 2020. The effective tax rate was 20.0% compared with 24.0% in FY 2020, as in FY 2021, the effective tax rate was impacted by refunds of withholding taxes related to prior years. Consequently, the effective tax rate of 20.0% was lower than the expectation announced in the 2020 Annual Report of an expected effective tax rate for 2021 of between 23% and 25%.
The profit after tax was EUR 110.0m compared with EUR 88.3m in FY 2020.
After exchange rate adjustments on translation of foreign assets and liabilities and remeasurement of defined benefit plans, a net income of EUR 4.0m, the total comprehensive income amounted to EUR 114.0m against EUR 85.6m in FY 2020.
Balance sheet
SimCorp had total assets of EUR 526.3m at December 31, 2021 compared with EUR 470.8m at December 31, 2020. The increase of EUR 55.5m was primarily related to changes in contract assets of EUR 45.1m.
Cash holdings decreased by EUR 5.4m from EUR 53.1m at December 31, 2020 to EUR 47.7m.
Compared with December 31, 2020 contract assets increased by EUR 45.1m from EUR 175.9m to EUR 221.0m. New and additional subscription-based licenses added EUR 74.6m to contract assets, foreign exchange adjustments added EUR 8.6m, and net adjustment in financing element added EUR 1.4m. Reductions in 2021 stem from invoiced subscription-based license fees from opening balance of EUR 39.4m, and from adjustments to expected credit loss provision of EUR 0.1m.
Receivables increased by EUR 14.0m from EUR 82.5m at December 31, 2020 to EUR 96.5m.
In accordance with IFRS 9 'Financial Instruments', SimCorp has made an expected credit loss provision of EUR 1.4m related to contract assets and receivables at December 31, 2021 (December 31, 2020: EUR 1.4m).
The Group's total non-current assets were EUR 147.3m compared with EUR 150.9m on December 31, 2020.
Goodwill was EUR 61.6m at December 31, 2021 compared with EUR 61.4m at December 31, 2020. No impairment of goodwill was made in 2021.
The carrying amount of acquired software was EUR 9.8m compared with EUR 11.5m at the end of 2020 and the value of client relationships was EUR 21.2m compared with EUR 22.9m at the end of 2020. The decreases were due to amortization.
Page 14 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
The carrying amount of leasehold assets was EUR 40.1m compared with EUR 43.7m at the end of 2020. The decreases were due to amortization.
Other property, plant, and equipment amounted to EUR 3.6m compared with EUR 4.0m at the end of 2020.
Other financial assets amounted to EUR 4.8m compared with EUR 0.4m at the end of 2020. The increase in 2021 was due to an investment in Domos.
Deferred tax assets were EUR 3.1m compared with EUR 4.2m at the end of 2020.
SimCorp's total liabilities were EUR 203.2m at December 31, 2021, compared with EUR 192.6m a year earlier. The increase relates mainly to higher trade payables.
Cash flow
Operating activities generated in Q4 2021 a cash inflow of EUR 1.8m compared with EUR 24.8m in the same period last year.
In FY 2021, operating activities generated a cash inflow of EUR 90.7m compared with EUR 104.6m in same period last year. Payment of income taxes amounted to EUR 23.3m, against EUR 20.7m in FY 2020.
In FY 2021, changes in working capital were negative at EUR 11.2m in 2021, compared with three consecutive years with positive changes in working capital of EUR 9.3m in 2020, EUR 11.5m in 2019 and EUR 21.9m in 2018. Changes in working capital in 2021 were negatively impacted by a one-off payment of EUR 6.6m in Q4 2021 following a change in the Danish Holiday Act and postponed payments of income taxes and social charges offered under government COVID-19 related support schemes payments where payments without these support schemes would have been paid in 2020. This contributed to the decrease in Other payables of EUR 9.2m from the end of 2020 to the end to 2021. In addition, receivables increased by EUR 14.0m due to the increased revenue.
In Q4 2021, EUR 4.6m was spent on investing activities compared with EUR 0.5m in Q4 2020, and for FY 2021, EUR 5.7m was spent on investing activities compared with EUR 2.7m in FY 2020. The increase was due to the investment in Domos.
Q4 2021, free cash flow (cash flow from operations reduced by CAPEX and reduced by the principal element of lease payments) was EUR -1.2m compared with EUR 21.3m in Q4 2020, a decrease of EUR 22.5m.
In FY 2021, free cash flow was EUR 78.6m compared with EUR 91.8m in FY 2020, a decrease of EUR 13.2m.
FY 2021 cash conversion, defined as free cash flow divided by profit for the year, was 71% compared with 104% in FY 2020. The lower cash conversion was primarily due to increased contract assets following higher subscription-based license revenue, and the development in changes in working capital explained above. The cash conversion of 71% was in line with the expectation announced in the 2020 Annual Report of an expected cash conversion for 2021 of between 70% and 80%.
Page 15 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Cash used in financing activities in Q4 2021 of EUR 10.8m related to the purchase of treasury shares of EUR 8.0m, repayment of lease liabilities of EUR 2.8m compared with repayment of lease liabilities of EUR 3.0m in the same period last year.
Cash used in financing activities in FY 2021 of EUR 91.0m related to dividend payments of EUR 40.1m, purchase of treasury shares of EUR 40.1m, and repayment of lease liabilities of EUR 10.8m, compared with payment of dividends of EUR 39.9m, purchase of treasury shares of EUR 10.0m, repayment of lease liabilities of EUR 10.3m, and net repayment of credit facilities of EUR 20.0m in 2020.
Changes in equity
The company's equity amounted to EUR 323.1m on December 31, 2021. This was an increase of EUR 44.9m compared with December 31, 2020. Equity was reduced by the purchase of treasury shares of EUR 40.1m and by dividends of EUR 40.1m. Equity was increased by comprehensive income in FY 2021 of EUR 114.0m as well as effects of share-based remuneration of EUR 11.0m, net of tax.
Page 16 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Outlook for the financial year 2022*
SimCorp entered 2022 with signed revenue for the full year of EUR 323.2m, an increase of EUR 34.0m or 11.8% compared with the beginning of 2021.
Based on the current business environment, the signed revenue and current pipeline, SimCorp's market position, and planned investments, the expectations for 2022 are to grow revenue in local currencies between 7% and 12%, and to generate an EBIT margin measured in local currencies of between 23.0% and 26.0%.
Included in the expected EBIT margin for 2022 is a negative short-term impact of around 2%-points from planned investments in the future, including investments in new SaaS operations and solutions, such as Investment Accounting Services (IAS). The extra demand driven investments in 2022 are expected to lead to additional revenue and higher EBIT margin in coming years. We also expect a higher salary increase in 2022 compared with recent years due to higher inflation and demand for skilled labor.
In 2022, SimCorp expects Annual Recurring Revenue (ARR) in local currency to grow between 10% and 15%.
SimCorp regards the underlying market drivers and trends as attractive. However, in the short-term, SimCorp regard the environment as slightly negative to its business, due to the continued challenges caused by the COVID-19 pandemic. We experience the highest negative impact from COVID-19 restrictions in NA and APAC. SimCorp expects COVID-19 restrictions to be maintained until vaccine programs have been successfully implemented across its markets. In the short term, this leads to some hesitancy in clients' decision making, thereby causing longer sales processes. We expect the impact of COVID-19 restrictions to continue through Q1 2022, tapering off towards the end of H1 2022 with a normalization not expected before H2 2022.
Based on the exchange rates prevailing at the end of January 2022, SimCorp estimates reported revenue to be positively impacted from currency fluctuations by around 1.3% and reported EBIT margin to be positively impacted from currency fluctuations by around 0.2%-points.
- This announcement contains certain forward-looking statements and expectations in respect of the 2022 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 17 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Other information
Significant risk and uncertainty factors
SimCorp operates in a dynamic and complex business environment with geopolitical unstability where performance relies heavily on the ongoing achievement of a number of success criteria. Pages 31-36 of SimCorp's Annual Report 2021 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 pertains to the current situation.
Shareholder information
Restricted stock units
In Q4 2021, 3,178 restricted stock units were granted to 24 employees related to sign-on incentives. The restricted stock units will vest after three years subject to continued employment.
In Q4 2021, 2,727 restricted stock units vested and were transferred to two employees.
325,610 restricted stock units are outstanding on December 31, 2021. The restricted stock units will be transferred in whole or in part between 2021 and 2026 to program participants still employed when the restricted stock units vest, some subject to performance conditions.
Holding of treasury shares
The Company purchased 78,130 treasury shares in Q4 2021 at an average price of DKK 764.69 per share, totaling EUR 8.0 m. In total, the Company purchased 375,475 treasury shares in FY 2021 at an average price of DKK 794.17 per share, totaling EUR 40.1m. In comparison, the Company purchased 112,654 treasury shares at an average price of DKK 660.78 per share, totaling EUR 10.0m, in FY 2020.
On December 31, 2021, the Company's holding of treasury shares amounted to 1,071,389 treasury shares, equal to 2.6% of the Company's issued share capital.
Page 18 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
Signatures
The Board of Directors and the Executive Management Board have today considered and approved the Annual Report for 2021 of SimCorp A/S, including the audited consolidated financial statements. The Board of Directors and the Executive Management Board have also today considered and approved this interim report for 2021.
The consolidated financial statements in the Annual Report 2021 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 interim reports 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, 2021 and of the profit of the Group's operations and cash flow for the period January 1 - December 31, 2021.
Furthermore, this interim report gives, together with what is disclosed in the Annual Report 2021, a fair representation of the Group's activities, financial position and description of the most material risks and uncertainties which the Group is facing.
Copenhagen, February 15, 2022
Executive Management Board:
Christian Kromann
Chief Executive Officer
Michael Rosenvold
Chief Financial Officer
George Hetrodt
Chief Product Officer
Board of Directors:
Peter Schütze
Chairman
Morten Hübbe
Vice Chairman
Hervé Couturier
Susan Standiford
Simon Jeffreys
Edan Warby
Joan A. Binstock
Else Braathen
Vera Bergforth
Hugues Chabanis
Page 19 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Consolidated income statement
| EUR '000 | 2021 Q4 | 2020 Q4 | 2021 FY | 2020 FY |
|---|---|---|---|---|
| Revenue | 160,240 | 146,169 | 496,274 | 455,970 |
| Cost of sales | 55,710 | 44,689 | 196,982 | 167,415 |
| Gross profit | 104,530 | 101,480 | 299,292 | 288,555 |
| Other operating income | 253 | 25 | 709 | 846 |
| Research and development costs | 24,806 | 25,324 | 91,771 | 91,830 |
| Sales and marketing costs | 17,079 | 14,122 | 50,230 | 50,198 |
| Administrative expenses | 8,576 | 3,651 | 25,583 | 23,077 |
| Operating profit (EBIT) | 54,322 | 58,408 | 132,417 | 124,296 |
| Share of profit after tax in associates | 116 | 83 | 174 | 104 |
| Financial income/expenses, net | 2,049 | -3,601 | 4,827 | -8,304 |
| Profit before tax | 56,487 | 54,890 | 137,418 | 116,096 |
| Tax on the profit for the period | 8,005 | 12,311 | 27,426 | 27,838 |
| Profit for the period | 48,482 | 42,579 | 109,992 | 88,258 |
| EARNINGS PER SHARE | ||||
| Earnings per share - EPS (EUR) | 1.23 | 1.07 | 2.76 | 2.22 |
| Diluted earnings per share - EPS-D (EUR) | 1.22 | 1.07 | 2.74 | 2.20 |
Statement of comprehensive income
| EUR '000 | 2021 Q4 | 2020 Q4 | 2021 FY | 2020 FY |
|---|---|---|---|---|
| Profit for the period | 48,482 | 42,579 | 109,992 | 88,258 |
| Other comprehensive income | ||||
| Items that will not be reclassified subsequently to the income statement: | ||||
| Remeasurements of defined benefit plans | 1,934 | 47 | 1,934 | 47 |
| Tax, remeasurement of defined benefit plans | -396 | -1 | -396 | -1 |
| Items that may be reclassified subsequently to the income statement, when specific conditions are met: | ||||
| Foreign currency translation differences for foreign operations | 752 | -280 | 2,500 | -2,742 |
| Other comprehensive income after tax | 2,290 | -234 | 4,038 | -2,696 |
| Total comprehensive income | 50,772 | 42,345 | 114,030 | 85,562 |
Page 20 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Consolidated balance sheet
| EUR '000 | Dec. 31
2021 | Dec. 31
2020 |
| --- | --- | --- |
| ASSETS | | |
| Goodwill | 61,645 | 61,367 |
| Software | 9,801 | 11,471 |
| Client relationships | 21,245 | 22,887 |
| Total intangible assets | 92,691 | 95,725 |
| Leasehold | 40,095 | 43,684 |
| Technical equipment | 860 | 1,063 |
| Other equipment, fixtures, fittings and prepayments | 2,737 | 2,903 |
| Total property, plant, and equipment | 43,692 | 47,650 |
| Investments in associates | 909 | 881 |
| Deposits | 2,123 | 2,031 |
| Deferred tax | 3,091 | 4,173 |
| Other financial assets | 4,843 | 404 |
| Total other non-current assets | 10,966 | 7,489 |
| Total non-current assets | 147,349 | 150,864 |
| Receivables | 96,543 | 82,513 |
| Contract assets | 221,000 | 175,928 |
| Income tax receivables | 2,060 | 1,194 |
| Prepayments | 11,668 | 7,292 |
| Cash and cash equivalents | 47,692 | 53,051 |
| Total current assets | 378,963 | 319,978 |
| Total assets | 526,312 | 470,842 |
| LIABILITIES AND EQUITY | | |
| Share capital | 5,441 | 5,441 |
| Exchange adjustment reserve | -2,225 | -4,725 |
| Retained earnings | 280,003 | 237,409 |
| Proposed dividend | 39,888 | 40,125 |
| Total equity | 323,107 | 278,250 |
| Lease liabilities | 32,088 | 34,547 |
| Deferred tax | 33,121 | 28,323 |
| Provisions | 9,743 | 11,119 |
| Total non-current liabilities | 74,952 | 73,989 |
| Lease liabilities | 8,577 | 9,630 |
| Prepayments from clients | 31,239 | 26,231 |
| Trade payables | 29,126 | 17,747 |
| Other payables | 49,993 | 59,158 |
| Income tax payables | 8,886 | 5,118 |
| Provisions | 432 | 719 |
| Total current liabilities | 128,253 | 118,603 |
| Total liabilities | 203,205 | 192,592 |
| Total liabilities and equity | 526,312 | 470,842 |
Page 21 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Consolidated cash flow statement
| EUR '000 | 2021 | 2020 | 2021 | 2020 |
|---|---|---|---|---|
| Q4 | Q4 | FY | FY | |
| Profit for the period | 48,482 | 42,579 | 109,992 | 88,258 |
| Depreciation | 3,786 | 4,020 | 15,379 | 16,094 |
| Share of profit after tax in associates | -116 | -83 | -174 | -104 |
| Financial income/expenses, net | -2,049 | 3,601 | -4,827 | 8,304 |
| Tax on the profit for the period | 8,005 | 12,311 | 27,426 | 27,838 |
| Other non-cash items | 8,404 | -373 | 12,904 | -7,037 |
| Adjustment share based remuneration | 4,783 | 1,827 | 11,332 | 10,997 |
| Change in provisions | -1,704 | -6,793 | -1,663 | -2,055 |
| Changes in contract assets | -26,946 | -25,694 | -44,861 | -24,558 |
| Changes in working capital | -31,320 | 7,170 | -11,169 | 9,302 |
| Financial income received | -4 | 1 | 5 | 101 |
| Financial expenses paid | -108 | -1,577 | -319 | -1,901 |
| Income tax paid | -9,377 | -12,215 | -23,329 | -20,674 |
| Net cash from operating activities | 1,836 | 24,774 | 90,696 | 104,565 |
| Purchase of property, plant, and equipment, net | -282 | -483 | -1,259 | -2,399 |
| Sale and purchase of financial assets, net | -4,327 | 1 | -4,507 | -361 |
| Dividends from associates | 9 | - | 91 | 79 |
| Net cash used in investing activities | -4,600 | -482 | -5,675 | -2,681 |
| Dividends paid | 39 | 40 | -40,086 | -39,879 |
| Purchase of treasury shares | -8,036 | -9 | -40,102 | -10,006 |
| Repayment of lease liability | -2,757 | -2,992 | -10,808 | -10,357 |
| Proceeds, credit facilities / loans | - | -30,167 | - | - |
| Repayment loans | - | 30,167 | - | -20,000 |
| Net cash used in financing activities | -10,754 | -2,961 | -90,996 | -80,242 |
| Change in cash and cash equivalents | -13,518 | 21,331 | -5,975 | 21,642 |
| Cash and cash equivalents at beginning of period | 60,890 | 32,617 | 53,051 | 31,851 |
| Foreign exchange adjustment of cash and cash equivalents | 320 | -897 | 616 | -442 |
| Cash and cash equivalents end of period | 47,692 | 53,051 | 47,692 | 53,051 |
Page 22 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
Statement of changes in equity
| EUR '000 | Share capital | Share premium | Exchange adjustment reserve | Retained earnings | Dividends for the year | Total |
|---|---|---|---|---|---|---|
| 2021 | ||||||
| Equity at January 1 | 5,441 | - | -4,725 | 237,409 | 40,125 | 278,250 |
| Net profit for the period | - | - | - | 109,992 | - | 109,992 |
| Total other comprehensive income | - | - | 2,500 | 1,538 | - | 4,038 |
| Total comprehensive income for the period | - | - | 2,500 | 111,530 | - | 114,030 |
| Transactions with owners | ||||||
| Dividends paid to shareholders | - | - | - | 39 | -40,125 | -40,086 |
| Share-based payment | - | - | - | 11,332 | - | 11,332 |
| Tax, share-based payment | - | - | - | -317 | - | -317 |
| Purchase of treasury shares | - | - | - | -40,102 | - | -40,102 |
| Proposed dividend to shareholders | -39,888 | 39,888 | - | |||
| Equity at December 31 | 5,441 | - | -2,225 | 280,003 | 39,888 | 323,107 |
| 2020 | ||||||
| Equity at January 1 | 5,441 | - | -1,983 | 186,643 | 39,919 | 230,020 |
| Reclassification | - | - | - | 45,679 | - | 45,679 |
| Adjusted balance at January 1 | 5,441 | -2,462 | - | - | -2,462 | |
| Net profit for the period | - | - | - | 88,258 | - | 88,258 |
| Total other comprehensive income | - | - | -2,742 | 46 | - | -2,696 |
| Total comprehensive income for the period | - | - | -2,742 | 88,304 | - | 85,562 |
| Transactions with owners | ||||||
| Dividends paid to shareholders | - | - | - | 40 | -39,919 | -39,879 |
| Share-based payment | - | - | - | 10,997 | - | 10,997 |
| Tax, share-based payment | - | - | - | 1,556 | - | 1,556 |
| Purchase of treasury shares | - | - | - | -10,006 | - | -10,006 |
| Proposed dividends to shareholders | - | - | - | -40,125 | 40,125 | - |
| Equity at December 31 | 5,441 | - | -4,725 | 237,409 | 40,125 | 278,250 |
Page 23 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
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 2021. See the Annual Report 2021 for a comprehensive description of the accounting policies applied.
Change in accounting policies
Effective 1 January 2021, a number of new accounting standards and interpretations have been implemented which do not have any monetary effect on the SimCorp Group's result, assets, liabilities or equity.
Judgments and estimates
The preparation of interim reports requires management to make accounting judgments and estimates that affect the use of accounting policies and recognized assets, liabilities, income and expenses. Actual results may differ from these estimates.
The most significant estimates made by management when using the Group's accounting policies and the most significant judgment uncertainties attached hereto are the same for the preparation of the interim report as for the preparation of the Annual Report 2021.
Segment information
Revenue disclosure 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 headquarter assets, cash and investments in associates. "Research and development" and "Corporate functions" are not operating segments, and the disclosure forms part of the reconciliation to Group totals rather than being information about operating segments.
Page 24 of 26
Company Announcement
SimCorp reports revenue growth of
8.8%
and EBIT margin of
26.7%
in 2021
| 2021EUR '000 | EMEA | Asia andAustralia | NorthAmerica | SimCorpSofia | Researchanddevelopment | Corporatefunctions | Elimination/Notallocated | Group |
|---|---|---|---|---|---|---|---|---|
| October 1 – December 31, 2021 | ||||||||
| Licenses - initial sales | 708 | 814 | 1,394 | - | - | - | - | 2,916 |
| Licenses - additional sales | 37,461 | 4,122 | 4,196 | 2,647 | - | - | - | 48,426 |
| Software updates and support | 33,650 | 3,944 | 6,615 | 1,248 | 102 | - | - | 45,559 |
| Professional services | 27,580 | 5,283 | 14,133 | 3,757 | - | - | - | 50,753 |
| Hosting and other fees | 7,416 | 1,850 | 3,001 | - | 294 | 25 | - | 12,586 |
| External revenue | 106,815 | 16,013 | 29,339 | 7,652 | 396 | 25 | - | 160,240 |
| Revenue between segments | 9,918 | 564 | 1,663 | 105 | 71,307 | 17,813 | -101,370 | - |
| Total segment revenue | 116,733 | 16,577 | 31,002 | 7,757 | 71,703 | 17,838 | -101,370 | 160,240 |
| EBITDA | 15,324 | 734 | 3,007 | 4,780 | 46,735 | -12,472 | - | 58,108 |
| Depreciation and amortization | 1,077 | 188 | 369 | 296 | 471 | 1,385 | - | 3,786 |
| Segment operating profit (EBIT) | 14,247 | 546 | 2,638 | 4,484 | 46,264 | -13,857 | - | 54,322 |
| Financial items, net | 2,165 | |||||||
| Profit for the period before tax | 56,487 | |||||||
| January 1 – December 31, 2021 | ||||||||
| Licenses - initial sales | 12,398 | 2,080 | 7,055 | - | - | - | - | 21,533 |
| Licenses - additional sales | 66,844 | 5,021 | 14,101 | 6,540 | - | - | - | 92,506 |
| Software updates and support | 132,886 | 15,178 | 26,060 | 4,840 | 397 | - | - | 179,361 |
| Professional services | 90,334 | 17,830 | 48,420 | 11,310 | - | - | - | 167,894 |
| Hosting and other fees | 19,875 | 3,696 | 10,152 | 33 | 943 | 281 | - | 34,980 |
| External revenue | 322,337 | 43,805 | 105,788 | 22,723 | 1,340 | 281 | - | 496,274 |
| Revenue between segments | 35,238 | 2,480 | 9,113 | 887 | 204,079 | 52,816 | -304,613 | - |
| Total segment revenue | 357,575 | 46,285 | 114,901 | 23,610 | 205,419 | 53,097 | -304,613 | 496,274 |
| EBITDA | 46,301 | 2,319 | 10,969 | 11,890 | 118,879 | -42,562 | - | 147,796 |
| Depreciation and amortization | 4,414 | 694 | 1,321 | 1,413 | 1,812 | 5,725 | - | 15,379 |
| Segment operating profit (EBIT) | 41,887 | 1,625 | 9,648 | 10,477 | 117,067 | -48,287 | - | 132,417 |
| Financial items, net | 5,001 | 5,001 | ||||||
| Profit for the period before tax | 137,418 | |||||||
| Total assets | 254,817 | 46,265 | 103,216 | 50,962 | 60,605 | 3,100 | 7,347 | 526,312 |
| 2020EUR '000 | EMEA | Asia andAustralia | NorthAmerica | SimCorpSofia | Researchanddevelopment | Corporatefunctions | Elimination/Notallocated | Group |
| October 1 – December 31, 2020 | ||||||||
| Licenses - initial sales | 964 | 3,663 | 4,716 | - | - | - | - | 9,343 |
| Licenses - additional sales | 28,975 | 245 | 3,489 | 421 | - | - | - | 33,130 |
| Software updates and support | 33,469 | 3,340 | 6,272 | 1,309 | 98 | - | - | 44,488 |
| Professional services | 20,777 | 5,612 | 14,214 | 3,051 | - | - | - | 43,654 |
| Hosting and other fees | 8,834 | 1,258 | 4,664 | 2 | 614 | 182 | - | 15,554 |
| External revenue | 93,019 | 14,118 | 33,355 | 4,783 | 712 | 182 | - | 146,169 |
| Revenue between segments | 8,927 | 528 | 1,469 | 269 | 66,613 | 18,917 | -96,723 | - |
| Total segment revenue | 101,946 | 14,646 | 34,824 | 5,052 | 67,325 | 19,099 | -96,723 | 146,169 |
| EBITDA | 8,899 | 894 | 3,023 | 1,620 | 44,071 | 3,921 | 62,428 | |
| Depreciation and amortization | 759 | 164 | 379 | 410 | 783 | 1,525 | 4,020 | |
| Segment operating profit (EBIT) | 8,140 | 730 | 2,644 | 1,210 | 43,288 | 2,396 | - | 58,408 |
| Financial items, net | -3,518 | -3,518 | ||||||
| Profit for the period before tax | 54,890 | |||||||
| January 1 – December 31, 2020 | ||||||||
| Licenses - initial sales | 2,346 | 5,954 | 14,064 | - | - | - | - | 22,364 |
| Licenses - additional sales | 54,406 | 603 | 8,704 | 5,475 | - | - | - | 69,188 |
| Software updates and support | 132,990 | 13,305 | 24,973 | 4,753 | 554 | - | - | 176,575 |
| Professional services | 88,256 | 13,487 | 43,494 | 9,493 | - | - | - | 154,730 |
| Hosting and other fees | 18,449 | 2,550 | 10,672 | 3 | 1,257 | 182 | - | 33,113 |
| External revenue | 296,447 | 35,899 | 101,907 | 19,724 | 1,811 | 182 | - | 455,970 |
| Revenue between segments | 27,332 | 2,022 | 4,617 | 1,122 | 183,855 | 55,927 | -274,875 | - |
| Total segment revenue | 323,779 | 37,921 | 106,524 | 20,846 | 185,666 | 56,109 | -274,875 | 455,970 |
| EBITDA | 28,508 | 3,070 | 7,713 | 8,569 | 97,746 | -5,216 | - | 140,390 |
| Depreciation and amortization | 3,006 | 680 | 1,382 | 1,639 | 3,110 | 6,277 | - | 16,094 |
| Segment operating profit (EBIT) | 25,502 | 2,390 | 6,331 | 6,930 | 94,636 | -11,493 | - | 124,296 |
| Financial items, net | -8,200 | -8,200 | ||||||
| Profit for the period before tax | 116,096 | |||||||
| Total assets | 153,678 | 40,358 | 81,887 | 44,053 | 99,059 | 17,933 | 33,874 | 470,842 |
Page 25 of 26
Page 26 of 26
Company Announcement
SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021
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.
Contingent liabilities
Please refer to the Annual Report 2021.
Events after December 31, 2021
No significant events have occurred after December 31, 2021 other than as described separately in this interim report.