CANCOM: Financial year 2022 ends with record revenue in the fourth quarter. Dividend proposal of €1.00 per share and forecast 2023 published.

• Final annual results 2022 published: Group revenue €1,292.9 million, Group EBITDA €104.9 million.
• Executive Board proposes dividend of €1.00 per share.
• Forecast 2023: The Executive Board sees good prospects for business development and expects an increase in revenue.

Munich, Germany, 30 March 2023 - According to the annual report published today, the CANCOM Group achieved Group revenue of €1,292.9 million in the financial year 2022 (prior year*: €1,286.0 million). The fourth quarter contributed €367.8 million to this figure, making it the strongest quarter in the company's history in terms of revenue to date (prior year*: €353.2 million). On the basis of this revenue, CANCOM generated gross profit of €437.9 million in 2022 (prior year*: €425.3 million) and EBITDA of €104.9 million (prior year*: €122.6 million). Accordingly, the EBITDA margin in the financial year 2022 totalled 8.1 percent (prior year*: 9.5 percent).

"We closed the 2022 business year with a very good revenue in the fourth quarter. Overall, the year 2022 was strongly influenced by external factors and we also had to deal with various internal special issues in the earnings figures that did not come from the operating business. But our financial room for manoeuvre is large and the prospects for 2023 are good, which is why the Executive Board has proposed the distribution of a stable dividend of €1.00 per share," said Rüdiger Rath, CEO of CANCOM SE.   

At the end of the 2022 financial year, the CANCOM Group has cash and cash equivalents of €393.2 million (prior year: €653.0 million), despite two acquisitions, the repurchase of treasury shares for €117.4 million in 2022 and an operating cash flow of €-53.6 million in the past financial year (prior year: €72.3 million). 

The CANCOM Group's business segments developed very differently in the financial year 2022. The Cloud Solutions segment, which is characterised by the high proportion of service business, achieved revenue of €287.3 million (prior year*: €238.4 million) and segment EBITDA of €81.2 million (prior year*: €80.1 million). Recurring revenue (ARR) increased to € 224.7 million (prior year*: € 181.8 million).
The IT Solutions segment, on the other hand, contributed revenues of € 1,005.1 million (prior year*: € 1,047.3 million) and a segment EBITDA of €41.7 million (prior year*: €59.7 million) to the 2022 Group result. 

CANCOM changes financial reporting and introduces new key figures

From the first quarter of 2023, the CANCOM Group will no longer use the Cloud Solutions and IT Solutions segment structures formed solely for the purpose of financial reporting and will present the income statement exclusively at Group level. At the same time, CANCOM is introducing a new presentation of revenue and gross profit in a breakdown along the value chain, starting with the trading business with hardware and software through to Managed Services and XaaS offerings. Added to this are further new indicators.

"The Cloud Solutions and IT Solutions segments were introduced around ten years ago to show the growing value creation in the business with IT services based on cloud technology in the CANCOM Group. In 2022, the Cloud Solutions segment generated around two-thirds of Group EBITDA and, in my view, has convincingly communicated the transformation of the business model in recent years," explains Rath. "However, technological development is increasingly intertwining hardware, software and service offerings. Consumption-based IT usage concepts are being added and cloud technology projects are now also the order of the day in our IT Solutions segment. All this makes our current segment reporting in the financial reports increasingly inappropriate to the actual real business processes. In our view, it is therefore time to make the value creation of the business model more transparent again by changing and expanding the key figure basis," says Rath.

Efficiency and profitability programme launched

As already mentioned in the announcement of the preliminary annual results in February, the Executive Board has launched an efficiency and profitability programme in the new financial year. The individual measures are aimed primarily at optimising the allocation of human and material resources. In addition, improvements in internal processes and the tools used, together with measures in the area of other operating expenses that are already effective in the short term, should generate a lasting positive base effect on profitability.

Forecast 2023 

CANCOM is starting the new year with a high order backlog and is also recording a good level of incoming orders at the beginning of 2023. Even though known uncertainty factors such as the further development of inflation, the economic situation and the war in Ukraine remain, the Executive Board of CANCOM SE sees good prospects for business development. For the financial year 2023, the Executive Board therefore forecasts the following values for the key financial indicators of revenue, gross profit, EBITDA and EBITA for the CANCOM Group:

The complete Annual Report 2022 of the CANCOM Group is published on www.cancom.de in the Investors section.

* In connection with the sale of the business activities in the USA, the marked prior year's values have been adjusted. For more information, please refer to section A.2.2.3 of the notes to the 2022 consolidated financial statements of CANCOM SE.

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
sebastian.bucher@cancom.de

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