Interim report 30 September 2013 - SimCorp A/S

SimCorp grew revenue by 11% during the first nine months of the year fuelled by satisfactory development in license sales as well as a solid performance of the professional services and maintenance activities.

In Q3 two new software license contracts were signed, one in the UK market and one in the French market.

Revenue for the first nine months of 2013 amounted to EUR 157.7m, EUR 16.0m higher than in the same period last year.

EBIT for the nine-month period was EUR 31.8m, up 53% compared with the same period last year.

Revenue secured by contract for 2013 is 12% higher than at the same time last year.

SimCorp maintains its expectations for 2013 of revenue growth measured in local currencies of more than 8% and also maintains its expectations of a reported EBIT margin exceeding 23%.

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SimCorp’s Board of Directors today considered and approved the Group’s interim report for the nine months ended 30 September 2013. Highlights of the report are:

9M revenue was EUR 157.7m, an increase of 11% compared with the same period last year. Q3 revenue increased by 12% compared with the same period last year and amounted to EUR 54.6m.  Page 5
9M order intake was EUR 26.1m, which was 5% less than in the same period last year. Q3 order intake amounted to EUR 10.9m compared with Q3 2012 of EUR 18.5m. The order book is unchanged from 30 June 2013, and amounted to EUR 14.7m at 30 September 2013, compared with EUR 16.7m at the same time in 2012. Page 4
Income recognised from licenses and add-on licenses amounted to EUR 25.0m in the nine-month period, an increase of 36% y/y, and amounted to EUR 10.6m in Q3 2013, an increase of 23% compared with the year-earlier period. Page 5
Revenue from professional services continues at a satisfactory level. Professional fees for the first nine months of the year were EUR 53.6m, up 12% relative to the same period last year. In Q3 professional fees were EUR 17.9m, an increase of 22% compared with the same period last year. Page 5
Maintenance income for the nine months was EUR 77.3m, an increase of 5% relative to the same period last year. Maintenance income in Q3 2013 was EUR 25.8m, an increase of 4% compared with the year-earlier period. Page 5
Total cost for the nine months amounted to EUR 125.9m, an increase of 4% compared with the same period in 2012. Q3 total cost was EUR 41.1m an increase of 2% on the year-earlier period. Page 6
9M EBIT was EUR 31.8m, which is 53% or EUR 11.1m higher than the same period last year. Q3 EBIT was EUR 13.5m, against EUR 8.4m in Q3 last year. Page 7
The 9M cash flow from operating activities was EUR 30.5m compared with EUR 28.6m in the same period of 2012. In Q3 cash flow from operating activities was EUR 8.0m compared with EUR 7.4 in Q3 2012. Page 8
At 30 September 2013, contracts equalling EUR 204.3m of the projected 2013 revenue had been secured, EUR 22.2m or 12% more than at the same time last year. Page 10
SimCorp maintains its expectations for the full year for revenue growth measured in local currencies of at least 8%  and a reported EBIT margin of at least 23%. The expectations to EBIT margin are maintained despite the negative currency impact on the reported EBIT margin for the 9M of around 1.0% point. The expectations are based on currency rates as of 31 October 2013. Page 10
This document is a translation of the original interim report in Danish (Delårsrapport 30. september 2013). In case of discrepancies, the Danish version prevails.

Investor meeting
SimCorp’s Executive Management Board will present this interim report at an investor meeting to be held on Friday, 29 November 2013 at 9:00 am (CET) at the company’s headquarters, Weidekampsgade 16, 2300 Copenhagen S. The meeting will be open to the public, and a live webcast of the presentation can be followed via this link, where it will be possible to ask questions online: http://storm.zoomvisionmamato.com/player/simcorp/objects/t2c7znb5/.

The presentation will be available afterwards via SimCorp’s website www.simcorp.com.

Enquiries regarding this announcement should be addressed to:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000) or
Thomas Johansen, Chief Financial Officer, SimCorp A/S (+45 3544 6858, +45 2811 3828)

Company Announcement no. 65/2013