CANCOM: Group revenue in the second quarter at the prior year's level. Noticeable improvements visible since June.  

• Group revenue in the second quarter 2022 at € 298.8 million (prior year*: € 303.6 million).
• Cloud Solutions segment continues to grow dynamically and ARR increases to € 203.9 million.
• Catch-up effects expected in the second half of the year, amongst others due to improved availability of IT components.

Munich, Germany, 11 August 2022 - As in the first quarter, the CANCOM Group's revenue development in the second quarter 2022 was hampered by the effects of insufficient availability of IT components. Overall, CANCOM generated Group revenue of € 298.8 million in the second quarter 2022, roughly matching the prior year's level (prior year*: € 303.6 million). Group EBITDA for the second quarter 2022 was € 24.7 million (prior year*: € 27.0 million).
For the first half of 2022, the CANCOM Group's revenue was € 595.5 million (prior year*: € 635.1 million) and Group EBITDA was € 51.1 million (prior year*: € 52.9 million).

"We have struggled with very burdensome general conditions in the first half of 2022 and have therefore not been able to translate the potential of our record-high order backlog into growth. However, now that the reluctance of our public-sector clients has dissipated since June and there is a noticeable easing in the IT supply chain, we are seeing a turnaround in revenue development," said Rudolf Hotter, CEO of CANCOM SE.

The CANCOM Group's cash flow from operating activities in the second quarter 2022 was € -49.8 million (prior year: € -19.0 million) and continued to reflect the consequences of the limited availability of IT components. In the first half of 2022, cash flow from operating activities thus amounted to € -126.1 million (prior year: € -30.9 million).
Cash and cash equivalents totalled € 389.0 million as at 30 June 2022 (31 December 2021: € 653.0 million), mainly due to the development of the operating cash flow as well as the implemented share buyback programme.

During the second quarter, the Executive Board of CANCOM SE put the subsidiaries of the CANCOM Group in the USA up for sale and reclassified them accordingly as "held for sale" in the financial reporting for the current and prior financial year. The move continues the concentration of business activities on the DACH region. The CANCOM Group's US business had a revenue volume of € 18.5 million in 2021.

Cloud Solutions dynamic, IT Solutions still burdened by supply chains
In the Cloud Solutions segment, CANCOM increased revenue in the second quarter 2022 to € 70.1 million (prior year*: € 55.0 million). EBITDA grew to € 18.9 million (prior year*: € 17.7 million). The EBITDA margin in the segment was 27.0 percent (prior year*: 32.1 percent). The key figure for recurring revenue, Annual Recurring Revenue (ARR), which is also allocated to the Cloud Solutions segment, increased to € 203.9 million as at 30 June 2022 (prior year*: € 163.4 million).
For the first half of 2022, the Cloud Solutions segment thus generated revenue of € 145.6 million (prior year*: € 114.0 million) and EBITDA of € 41.5 million (prior year*: € 35.3 million). CANCOM's Cloud Solutions segment covers the IT as a Service business.

In the IT Solutions segment, revenue in the second quarter 2022 was € 228.5 million (prior year*: € 248.5 million) and EBITDA was € 9.5 million (prior year*: € 13.8 million). The EBITDA margin in the segment was accordingly 4.2 percent (prior year*: 5.6 per cent).
In the first half of 2022, the IT Solutions segment thus generated revenue of € 449.6 million (prior year*: € 521.0 million) and EBITDA of € 17.9 million (prior year*: € 26.3 million). In the IT Solutions segment CANCOM reports on the project-based IT as a Concept business.

Positive outlook: Catch-up effects expected in the second half of the year
"The seasonality of our business model means that we generally have a higher business volume in the second half of the year than in the first, especially due to the fourth quarter, which is always particularly important. But above all, we have seen an easing in the IT supply chain since June and, in addition, the expected noticeable revival of demand in the public sector has occurred, so that we now expect corresponding catch-up effects. Overall, general customer demand for digital solutions remains high at this point in time," said Hotter.

Despite continuing major geopolitical and macroeconomic uncertainties, the Executive Board of CANCOM SE expects Group revenue and gross profit to increase significantly in the financial year 2022, as well as Group EBITDA and Group EBITA to increase significantly. The influence of the emerging economic slowdown and the geopolitical crises on the short-term business development of the CANCOM Group, which is difficult to assess, as well as the further development of the IT supply chain situation after the improvement that has now taken place, continue to be the main risks for the forecast.

The complete half-year financial report 2022 of the CANCOM Group is published on the website www.cancom.de in the Investors section.

*Note on comparative key figures
The Group company HPM Incorporated, which operates in the USA, was classified as "held for sale" for the first time in CANCOM SE's half-year financial report 2022. As a result, the published key financial figures in the income statement and segment reporting for the first half of the 2021 financial year have been retroactively adjusted (further information in section A.2.2.3 of the 2022 half-year financial statements). Furthermore, the balance sheet items as at 30 June 2022 relating to HPM Incorporated were reclassified for this reason (further information in section B.2 of the 2022 half-year financial statements). 

About CANCOM
As a Digital Transformation Partner, CANCOM accompanies organizations into the digital future. CANCOM supports customers to simplify complex enterprise IT and increase their business success through the implementation of modern technology. In order to comprehensively meet the IT needs of companies, organizations, and the public sector, CANCOM delivers tailor-made IT end to end from a single source.

The CANCOM Group’s range of IT solutions includes consulting, implementation, services, and the management of IT systems. Customers benefit from the extensive expertise as well as a holistic and innovative portfolio that covers the IT requirements that are necessary for a successful digital transformation. As a hybrid IT integrator and service provider, the Company provides an integrated range of services and solutions including business solutions and managed services, such as cloud computing, analytics, enterprise mobility, IT security, hosting, and as-a-service offerings.

With more than 4,000 employees, CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium and the USA. The CANCOM Group is led by Rudolf Hotter (CEO), Thomas Stark (CFO) and Rüdiger Rath (COO). The company is headquartered in Munich. CANCOM generated revenue of around EUR 1.3 billion in the financial year 2021. Its parent company CANCOM SE is listed in the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

Contact
Sebastian Bucher
Manager Investor Relations
+49 89 54054 5193
[email protected]

Note
If you do not wish to receive information from us via e-mail, please write to [email protected].

Data protection notification
You are receiving this invitation because you are included in the CANCOM investor information e-mail distribution list. You have been included as you have indicated in the past to be informed about company news. For this reason CANCOM stores and processes personal data like name and e-mail address to be able to provide to you this service. CANCOM stores and uses this data solely to obtain information about the development of the shareholder communication and to be able to contact investors as part of the investor relations activities.

General information on the use of data by CANCOM
CANCOM will not pass on personal data obtained in the course of investor relations activities to third parties without the express consent of the person concerned. The only exception to this rule is that CANCOM receives a request for data transmission from competent authorities such as the Federal Financial Supervisory Authority.
Even after you have agreed to receive investor information from us and thus permitted CANCOM to store and use your personal data, you have the right to revoke this agreement at any time. All you need to do is send an informal message by e-mail to [email protected] or to [email protected]
For any further information about CANCOM's privacy policy, who to contact or your individual rights as a data subject, please visit our website https://www.cancom.com/privacy-protection/