DGAP-News: SNP Publishes Outlook and Confirms Growth Path: Significant Increase in Profitability Planned

SNP Publishes Outlook and Confirms Growth Path: Significant Increase in Profitability Planned

Heidelberg, March 23, 2022 - SNP SE (ISIN: DE0007203705), a world-leading provider of software for managing complex digital transformation processes, today affirmed its forecast for the current fiscal year and medium-term planning until 2024. Accordingly, the company is planning further revenue and earnings growth for 2022: Compared with the previous year, revenue is expected to increase to between EUR 170 million and EUR 190 million (2021: EUR 167.0 million; 2021 like-for-like*: around EUR 160 million).

With regard to the operating result, SNP expects EBIT to increase to between EUR 10.5 million and EUR 13 million (2021: EUR 6.3 million). EBITDA will increase at a higher rate than EBIT in absolute terms, mainly due to the amortization of intangible assets that were added as a result of the acquisitions made in 2021 (PPA amortization).

The SNP Group will use 2022 to continue its growth path, expand its software platform and enhance its offerings in the areas of data analytics and data management. By launching the new strategy program ELEVATE, SNP is setting the course for the medium and long-term success of the company.

The key aspects of ELEVATE are:

- Developing the company's leading position in the core transformation market

- Expanding the addressable market (portfolio and technology)

- Establishing long-term customer relationships with recurring revenues

- Achieving scalable software growth through the partner business

- Sustainably improving operating efficiency in all areas of the company

By implementing ELEVATE, the company aims to increase revenue to more than EUR 230 million by 2024. The EBIT margin is expected to increase by more than 10 percentage points by 2024 compared with 2021.

"Our new strategy program ELEVATE focuses on realizing SNP's major growth opportunities. And more than ever before in SNP's history, it is about making our growth profitable and therefore achieving a significant expansion of our operating margin," says Michael Eberhardt, CEO of SNP SE.

Neither the forecast for 2022 nor the medium-term planning takes into account any possible impacts from the war in Ukraine. They are also based on the assumption that there will be no renewed increase in impairments due to the COVID pandemic. However, the company is monitoring the developments and their economic risks with due care.

* As a pro forma figure, the 2021 like-for-like revenue differs from the revenue reported for 2021 in the consolidated statement of income by adding the revenue generated by Datavard and EXA in 2021 prior to their respective acquisition dates (EUR 12.5 million) and removing the revenue generated by SNP Poland in 2021 prior to its sale (EUR 19.5 million).

About SNP

SNP is a world-leading provider of software for managing complex digital transformation processes. Instead of traditional IT consulting in the ERP environment, SNP offers an automated approach using specially developed software: The Data Transformation Platform CrystalBridge^(R) and the SNP BLUEFIELDTM approach allow companies to restructure and modernize their IT landscapes much more quickly and securely as well as migrate to new systems or cloud environments more securely. This gives customers clear qualitative advantages while at the same time reducing their time and costs.

The SNP Group has around 1,350 employees worldwide. The company is headquartered in Heidelberg, Germany, and generated revenue of around EUR 144 million in the 2020 fiscal year. It serves multinational companies in all industries. SNP was established in 1994, went public in 2000, and has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since August 2014 (ISIN DE0007203705).

More information is available at www.snpgroup.com

Contact person at SNP:
Marcel Wiskow
Director Investor Relations
Tel.: +49 6221 6425-637
E-mail: Marcel.Wiskow@snpgroup.com