SimCorp Interim Report Q2 2023

Key highlights

• In Q2 2023, SimCorp generated double-digit growth across all revenue metrics for the second consecutive quarter. SimCorp signed three SaaS conversion deals and two new SimCorp Dimension clients in the quarter leading to 77.3% organic SaaS growth. The forward-looking Annual Recurring Revenue (ARR) growth continued to accelerate and was 13.6% by the end of Q2, measured in local currency.
• Ratable revenue increased by 20.4% in Q2 2023 and 16.8% in H1 2023 compared to the same period in 2022. The development is driven by the underlying business growth of the SaaS transformation. Reported revenue grew organically by 15.1% in Q2 2023 and 16.9% in H1 2023.
• The profitability improved in both Q2 2023 and H1 2023 compared to 2022, driven by the strong revenue growth and controlled cost development. EBIT excluding special items was EUR 18.6 million in Q2 2023 (EUR 12.9 million in Q2 2022) and EUR 46.9 million in H1 2023 (EUR 29.2 million in H1 2022). Special items amounted to EUR 8.8 million in H1 2023 (restructuring costs of EUR 7.8 million and transaction costs of EUR 1.0 million) compared to EUR 7.5 million in H1 2022.
• SimCorp generated free cash flow of EUR 18.1 million in Q2 2023 and EUR 63.8 million in H1 2023. This represents an increase of 111% compared to the free cash flow in H1 2022. The increase is driven primarily by the strong growth in ratable revenue as well as enhanced working capital management.
• The execution of the accelerated strategic investments is on track, including the cost efficiency program, FuEl. The cost reduction targets of EUR 25 million in 2023 and EUR 35 million run-rate effect are confirmed.
• Based on the performance in H1 2023, SimCorp confirms the current financial guidance for 2023.
• On 27 April, SimCorp and Deutsche Boerse entered into an agreement pursuant to which Deutsche Boerse has made a recommended takeover offer to acquire all SimCorp shares at a price of DKK 735 per share. The extended offer period will expire on 19 September 2023, and Deutsche Boerse has announced that all regulatory approvals are expected before the expiry of the offer period.

SimCorp CEO, Christian Kromann, comments:

"In Q2 2023, we saw continued solid growth. The acquisition of new platform clients as well as large SaaS migration agreements exemplify the strength of our SaaS value proposition. As our transformation accelerates, we remain focused on continually investing to enhance our offerings across segments and operating models to drive long-term and sustainable growth."

Investor presentation

SimCorp's Executive Management Board will present the report on a conference call on Friday, August 11, 2023 at 11:00 am (CET). At the end of the presentation there will be a Q&A session.
The presentation will be available prior to the conference call via SimCorp's website
www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings

Webcast details

It will be possible to follow the presentation via this link:

https://edge.media-server.com/mmc/p/yi5racyj

Telephone conference registration

Participants are required to register in advance of the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, and a unique Personal PIN.

Online registration:  https://register.vevent.com/register/BI4604f41a752d446fa2ab2e7a6f90453d

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 Bjergby, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 3137 4171)

Media contacts

Tobias Brun-Falkencrone, Group Communications Director, SimCorp A/S (+45 2938 1284)

Søren Rathlou Top, Global PR & Communications Manager, SimCorp A/S (+45 3115 8706)

Company announcement no. 20/2023