Annual revenue up 27.6% to EUR 223.1m EBITDA grows disproportionately by 41.6% to EUR 27.0m EBITDA margin exceeds 12%

Pliezhausen, November 28, 2017. DATAGROUP SE (WKN A0JC8S) has further accelerated growth in FY 2016/2017. All key figures achieved new all-time-highs. Earnings grew disproportionately in relation to revenue, proving the qualitative direction of the growth course: High-margin Cloud services recorded the largest increase within the revenue mix and account today for 56% of revenue.

DATAGROUP’s revenue in FY 2016/2017 (01.10.2016 – 30.09.2017) rose 27.6% to EUR 223.1m (previous year EUR 174.9m). Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew disproportionately by 41.6% to EUR 27.0m (previous year EUR 19.1m), the EBITDA margin came in at 12.1% (10.9%). Earnings before interest and taxes (EBIT) also grew disproportionately by 46.7% and reached EUR 18.6m (EUR 12.7m). Earnings per share (EPS) almost doubled to EUR 1.41[1] (EUR 0.75) per share.

“We have clearly exceeded our 2016/2017 targets set at the start of the fiscal year”, commented DATAGROUP CEO Max H.-H. Schaber. “We are very glad not only about the new records, but also about the fact that an ever-larger proportion of future revenues is already secured today thanks to the scheduled expansion of long-term outsourcing contracts.” Business with high-quality Cloud and outsourcing services has been significantly expanded and accounts for 56% (44.6%) of revenue now. With 18 new contracts for the CORBOX solution signed with new customers, the IT Service Management product group has been further established in the market.

Successful acquisition strategy continues

In the past fiscal year, DATAGROUP made two additional strategic acquisitions, which increases the total number of acquisitions to 20 since the IPO. With HanseCom in May and ikb Data in August, the company has acquired two successful Cloud and outsourcing service providers. Both companies are profitable and strengthen DATAGROUP’s capabilities and capacities in its core business units. The most recent acquisition, ikb Data, is an excellent fit to DATAGROUP’s services portfolio due to its long-standing expertise in the financial services sector and its know-how in handling particularly sensitive data. It is planned to develop this company into a specialised unit for rendering bank-specific IT services within the Group.

“The sustained high level of customer satisfaction is a sign for the successful integration of new entities and employees that is also visible to the outside world. In 2017, DATAGROUP has again climbed one position to number 2 among 22 IT outsourcing service providers[2]“, said COO Dirk Peters. “It is not something to be taken for granted, especially for a quickly growing company such as ours. High service quality and customer satisfaction is a strategic target for us, as we see it as an indispensable requirement to reach our medium-term growth targets. After all, to expand business with our existing customers is an important pillar of our planned growth.”

Capital increase has paved the way for further growth

The company’s management sees itself well prepared for the further course of business. General conditions are favourable, driven by the increasing importance of IT services for Mittelstand companies across all industries. Digitisation, Industry 4.0 and automation ensure that demand is increasing not only in terms of requirements for technical infrastructures. Digital transformation requires companies to invest in the development of existing and new business models to remain competitive. DATAGROUP is at the customers’ side as a partner for the design, implementation and operation of IT landscapes.

The successful 10% capital increase to currently 8.349 million no-par shares over the last fiscal year has also laid the balance sheet foundations to continue on the growth path. Thanks to a broad placement of 759,000 new shares at institutional investors the company received fresh cash in the amount of about EUR 21m. The equity ratio increased to 27.6% (17,8% as of Sept. 30, 2016) at the balance sheet date and is again well above the targeted minimum level of 20%. At the same time, the higher free float has improved the attractiveness of the DATAGROUP shares, which has already been reflected in a significant increase in the average trading volume.

“We want to become the leading provider of IT outsourcing services for medium-sized German Mittelstand companies by 2021 — by this we mean companies generating annual revenues between EUR 100m and EUR 5bn. Today, DATAGROUP is well positioned in every respect to meet this target through organic and inorganic growth”, concluded Max H.-H. Schaber.

Supplementary information

The Management Board of DATAGROUP SE will present the preliminary figures today at Deutsche Börse’s German Equity Forum in Frankfurt (Time: 09.30 am, Room: Madrid).

An overview of the preliminary key figures is available under www.datagroup.de/investor-relations.

The audited figures for FY 2016/2017 will be published by the end of January 2018.

The company’s Annual General Meeting is scheduled for March 8, 2018 at the company’s headquarters in Pliezhausen.

[1] based on the rated average number of shares 7.940m

[2] 2016 IT Outsourcing Study Germany/Austria, Whitelane Research and Navisco

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