CANCOM: Around 11 percent growth in the third quarter of 2022

• Interim statement for the third quarter of 2022 confirms published preliminary results of the CANCOM Group.
• Cloud Solutions revenue rises to € 69.2 million (prior year: € 3.0 million) and IT Solutions revenue to € 260.3 million (prior year: € 234.7 million).
• Annual Recurring Revenue (ARR) of € 211.2 million is 23.9 percent above the prior year's value (prior year: € 170.4 million).
• Forecast corridors for segments show Cloud Solutions at revenue of € 280-290 million and IT Solutions at revenue of € 1,000-1,040 million at year-end.

Munich, Germany, 10 November 2022 - In the interim statement published today for the period ending 30 September 2022, the preliminary key financial figures for the third quarter already published for the CANCOM Group were confirmed. Accordingly, in the third quarter of 2022 the CANCOM Group achieved Group revenues of € 329.6 million (prior year: € 297.7 million) and a Group EBITDA of € 28.9 million (prior year: € 32.6 million). For the nine-month period 2022, this means that the CANCOM Group achieved Group revenue of € 925.1 million (prior year: € 932.8 million) and Group EBITDA of € 80.0 million (prior year: € 85.5 million).

The largest contribution to the CANCOM Group's revenue growth in the third quarter of 2022 came from the IT Solutions business segment. The Cloud Solutions business segment, on the other hand, continued to support EBITDA development in 2022 in particular. It also showed unchanged high momentum in the development of recurring revenue, which increased by 23.9 percent.

"For CANCOM, the 2022 financial year has been exceptional in all areas, both in terms of revenue and earnings development as well as with regard to capital requirements. But in the third quarter we returned to our long-established growth path and this confirms my conviction: CANCOM operates with a very future-proof business model and the team has outstanding IT skills and technical expertise. I am delighted to now be able to lead this company as CEO and once again expressly thank my predecessor Rudi Hotter on behalf of CANCOM for 17 years of successful Executive Board work," said Rüdiger Rath, CEO of CANCOM SE. Rüdiger Rath is CEO of CANCOM SE since 1 November 2022 and was priorly a member of the Executive Board as COO.

The CANCOM Group's cash flow from operating activities totalled € -43.6 million in the third quarter of 2022 (prior year: € -17.9 million), in particular due to the exceptionally high inventory levels in connection with the globally strained IT supply chains.

ARR with high momentum and IT Solutions segment delivers double-digit growth
The Cloud Solutions segment combines the IT as a Service business of the CANCOM Group. Revenue in the third quarter of 2022 amounted to € 69.2 million (prior year: € 63.0 million), representing a year-on-year increase of 9.9 percent. EBITDA was € 20.4 million (prior year: € 20.1 million). The EBITDA margin in the segment was 29.4 percent (prior year: 31.9 percent).  Annual Recurring Revenue (ARR) improved to € 211.2 million (prior year: € 170.4 million).

In the IT Solutions segment, which includes the project-based IT as a Concept business, revenue in the third quarter of 2022 was 10.9 percent higher than in the same period of the prior year at € 260.3 million (prior year: € 234.7 million). EBITDA amounted to € 13.1 million (prior year: € 16.5 million). The EBITDA margin was correspondingly 5.1 percent (prior year: 7.0 percent), which was unusually high in the prior year.

Acquisition of S&L Group, US business sold
In the third quarter, the CANCOM Group acquired the S&L group of companies, which complements the CANCOM Group's portfolio with services and managed services as well as project-based IT business. S&L was consolidated as of 1 August 2022.

In addition, as part of its strategic focus on the DACH region, CANCOM sold the Group company HPM Incorporated in the third quarter and with it its business activities in the USA, which also no longer made a significant contribution to the CANCOM Group's revenue and earnings performance. Due to the reclassification of the results of the US business in the income statement to the item "profit after taxes from discontinued operations", the key financial figures of the CANCOM Group presented here have also already been adjusted for this effect for the prior year.

Forecast 2022: Corridors for all forecast indicators
As already published, the Executive Board of CANCOM SE expects the CANCOM Group to achieve in the financial year 2022:

• Group revenue 2022: € 1,280 to 1,330 million 
  (priorly: "significant growth" compared to adjusted prior year's figure of € 1,286.0 million)
• Group gross profit 2022: € 435 to 445 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 425.6 million)
• Group EBITDA 2022: € 116 to 123 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 122.6 million)
• Group EBITA 2022: € 70 to 76 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 85.2 million)

For the Cloud Solutions segment, the Executive Board is planning the following figures for the 2022 financial year:

• Cloud Solutions revenue 2022: € 280 to 290 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 238.4 million)
• Cloud Solutions EBITDA 2022: € 84 to 90 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 80.1 million)
• Annual Recurring Revenue as of 31 December 2022: € 215-225 million
  (priorly: "very significant growth" compared to adjusted prior year's figure of € 181.8 million)

For the IT Solutions segment, the Executive Board is planning the following figures for the 2022 financial year:

• IT Solutions revenue 2022: € 1,000 to 1,040 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 1,047.3 million)
• IT Solutions EBITDA 2022: € 48 to 53 million
  (priorly: "significant growth" compared to adjusted prior year's figure of € 59.7 million)

The complete interim statement of CANCOM Group for the third quarter of 2022 is published on the website www.cancom.de in the Investors section.

About CANCOM
As a Hybrid IT Service Provider, 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 and Belgium. The CANCOM Group is led by Rüdiger Rath (CEO) and Thomas Stark (CFO). The company is headquartered in Munich, Germany. CANCOM generated revenue of around € 1.3 billion in the financial year 2021. Its parent company CANCOM SE is listed in the SDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

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

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