OTRS AG closes year 2022 with revenue increase of 7.2% - Further growth and extensive investments planned in 2023

• Revenues increase by 7.2% to EUR 11,839 thousand in 2022 (previous year: EUR 11,043 thousand)
• Recurring revenues in the double-digit million euro range for the first time
• Distribution of a dividend of EUR 0.10 per share (previous year: EUR 0.15) planned
• EBITDA with decline to EUR 1,270 thousand (previous year: EUR 2,395 thousand) due to investments
• 2023: Further growth and extensive investments in personnel and software planned

Oberursel, April 26, 2023: OTRS AG (ISIN: DE000A0S9R37), the manufacturer and world's largest service provider for the OTRS service management suite, today presents its figures for the financial year 2022. In the past reporting year, the company once again achieved revenue growth and exceeded the EUR 10 million mark in recurring revenues for the first time.

In the financial year 2022, OTRS AG succeeded in increasing its revenue by 7.2% to EUR 11,839 thousand (previous year: EUR 11,043 thousand) despite stormy geopolitical times and the associated challenging macroeconomic developments. This growth was mainly driven by a renewed increase in recurring revenues, which rose by 9.1% to EUR 10,743 thousand (previous year: EUR 9,845 thousand). Recurring revenues include annual contracts with access to the OTRS software in different versions as well as security, software updates and support, accounting for 90.7% of total OTRS revenues (previous year: 89.1%). In contrast, consulting revenues decreased by 6.6% to EUR 1,058 thousand (previous year: EUR 1,132 thousand). Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to EUR 1,270 thousand in the financial year 2022 (previous year: EUR 2,395 thousand). The company generated an operating cash flow of EUR 1,167 thousand (previous year: EUR 2,511 thousand). Earnings before interest and taxes (EBIT) amounted to EUR 488 thousand compared to EUR 1,710 thousand in the previous year. Net income for the year amounted to EUR 355 thousand (previous year: EUR 1,194 thousand). This corresponds to earnings per share of EUR 0.17 (previous year: EUR 0.62). The decline in EBITDA, EBIT and net income is mainly attributable to the significant increase in expenditure on personnel, the market research partnership with Gartner and the introduction of an ERP system from SAP.

OTRS AG will adhere to its sustainable dividend strategy despite the decline in earnings. Against this background, the Executive Board and Supervisory Board will propose to the Annual General Meeting to be held on July 20, 2023 the payment of a dividend of EUR 0.10 per share (previous year: EUR 0.15).

André Mindermann, CEO of OTRS:

"In an environment characterized by many upheavals, OTRS AG was able to close the financial year satisfactorily and within the forecast expectations. We have set a milestone by exceeding the EUR 10 million mark in recurring revenues. Our strategic focus on developing and increasing recurring revenues has proven its effectiveness. This ensures stability and further growth, even though 2023 will be a challenging year again. For this reason, we will continue to make major investments in personnel, Gartner and the introduction of SAP in the current financial year 2023 in order to counter the continued hesitant demand. We are countering the sales cycle, which has now tripled, by systematically optimizing our customer journey. This will enable us to successfully balance a weak economy for a longer period of time and equally make the most of an upcoming upturn under changed conditions."

Outlook 2023

Against the background of the still uncertain course of the Ukraine war and the unpredictable market-economic developments, for the financial year 2023, the Executive Board is planning revenue growth of 4% to 7% to approximately EUR 12.3 million to EUR 12.7 million. The significant investments (not capitalisable) in the current financial year of around EUR 1.2 million in the development and expansion of the product range will have a temporary impact on profitability, but will pay off in the medium term for the revenue and earnings potential as well as the continued growth of the OTRS group of companies. Due to these extensive investments, a balanced to slightly negative EBITDA is expected for the financial year 2023. The OTRS Executive Board's goal is to return to the planned profitability in 2024.

Annual Report

OTRS AG's Annual Report 2022 will be published on June 7, 2023 at otrs.com. The English version will be available on July 20, 2023.

Earnings Call

A video and telephone conference (webcast) will be held today at 11:00 a.m. (CEST) for analysts, investors and members of the press. Registrations for this are possible by e-mail to [email protected]. The webcast presentation can be downloaded at otrs.com.

About OTRS AG

OTRS Group is the manufacturer and the world’s largest provider of the enterprise service management suite OTRS, awarded with the SERVIEW CERTIFIED TOOL seal of approval.

It offers companies industry-independent solutions for structured communication in customer service, IT service management and security management. In addition to the core product OTRS, the security solutions STORM and CONTROL ensure efficient cybersecurity incident management and transparent documentation in accordance with standards such as ISO 27001.

Among its customers are Lufthansa, Airbus, Porsche, BSI (Federal Office for Security in Information Technology), Max Planck Institute, Toyota and TUI Cruises. The company consists of OTRS AG and its five subsidiaries OTRS Inc. (USA), OTRS S.A. de C.V. (Mexico), OTRS Asia Pte. Ltd. (Singapore), OTRS do Brasil Soluções Ltda. (Brazil) and OTRS Magyarország Kft. (Hungary). OTRS AG is listed on the basic board of the Frankfurt Stock Exchange. For more information, see www.otrs.com.

Contact:

OTRS AG
Zimmersmühlenweg 11
D-61440 Oberursel
Phone: +49 (0)6172 681988-0
Fax: +49 (0)9421 56818 18
E-Mail: [email protected]
Internet: www.corporate.otrs.com

Investor Relations
CROSS ALLIANCE communication GmbH

Susan Hoffmeister

Bahnhofstr. 98
D-82166 Graefelfing/Munich

Phone: +49 (0) 89 125 09 03-30

E-Mail: [email protected]

Internet: www.crossalliance.de