Sword Group — Earnings Release 2020

Oct 22, 2020

Financial Press Release
Windhof - October 22nd, 2020
SWORD
UPGRADE YOUR BUSINESS

Sword Group | Results for the Third Quarter of 2020

Consolidated Revenue: €55.1m
Organic Growth: +8.1%
EBITDA Margin: 13.1%

RESULTS

2020 THIRD QUARTER ACCOUNTS

Q3
€m	2020 (1)	2019
Revenue	55.1	52.6
EBITDA	7.2	6.9
EBITDA margin	13.1%	13.1%

Organic growth: +8.1%
Organic growth for the quarter as calculated on the new perimeter (outside France) amounts to +12.8%.

30 SEPTEMBER 2020
Consolidated Revenue: €167.2m
Organic Growth: +6.7%
EBITDA margin: 13.1%

ACCOUNTS AS OF SEPTEMBER 30, 2020

YTD SEPTEMBER 30
€m	2020 (1)	2019
Revenue	167.2	156.7
EBITDA	21.9	20.8
EBITDA margin	13.1%	13.3%

Organic growth: +6.7%
YTD organic growth (30/09) as calculated on the new perimeter (outside France) amounts to +8.8%.

(1) non audited figures

[...]

The press release will be published on the web sites here after: Thomson Reuters and Sword Group. It was also sent to the "Commission de Surveillance du Secteur Financier (CSSF)" and saved on the Luxembourg Stock Exchange's website.

Market	ICB 9530	ISIN Code	Indices	Sword-group.com
Euronext Paris	Software & Computer Services	FR0004180578	CAC® Small	CAC® All-Tradable
Compartment B			CAC® Mid & Small	CAC® All-Share

Sword Group - 2, rue d'Arlon L-8399 Windhof - investorrelations@sword-group.lu
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ANALYSIS

In cumulative terms at the end of September (YTD), organic growth of the new scope amounts to +8.8%, and is distributed as follows:

• Software: -9.3%
• Services: +11.3%

The Software division has declined, mainly due to the postponement of the licenses revenue that had been budgeted for the period, but the decline has slowed down in Q3, especially in the new perimeter outside France (-5.9% in Q3 vs. -9.3% YTD).

The Services division has reacted to the crisis in different ways depending on the country.

Three countries have more especially stood out:

• BeLux, which made up its backlog by the end of June in just one quarter, particularly thanks to the recovery in Tipik's business (+20.6% in Q3 vs. +6.6% YTD),
• The United Kingdom, which has continued to outperform in terms of growth over the quarter (+14.7% in Q3 vs +17.5% YTD),
• Switzerland, which has returned to double-digit growth (+13.5% in Q3 vs. +8.9% YTD).

OUTLOOK FOR 2020

Sword Group now expects organic growth of over 8% outside France (versus 12% budgeted) combined with an EBITDA margin of 13% (unchanged from the initial budget).

The press release will be published on the web sites here after: Thomson Reuters and Sword Group. It was also sent to the "Commission de Surveillance du Secteur Financier (CSSF)" and saved on the Luxembourg Stock Exchange's website.

Sword Group

Sword has 1,900+ IT/Digital & Software specialists present over 5 continents to accompany you in the growth of your organisation in the digital age.

As a leader in technological and digital transformation, Sword has since 2000 acquired a solid reputation in software publishing and in complex IT & business project management.

Sword optimises your processes and enhances your data.

Agenda

BUDGET

2020 Fourth Quarter Revenue

BUDGET

FY 2020 annual results presentation meeting (organisation to be defined)

Market	ICB 9530	ISIN Code	Indices	sword-group.com
Euronext Paris	Software & Services	FR0004180578	CAC® Small	CAC® All-Tradable
Compartment B	Computer		CAC® Mid & Small	CAC® All-Share

Sword Group - 2, rue d'Arlon L-8399 Windhof - investorrelations@sword-group.lu

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