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DGAP-News: CANCOM SE / Key word(s): Annual ResultsCANCOM: Very high growth rates in the cloud segment and recurring revenues in the financial year 2019; moderate growth of Group expected for 2020.

28.04.2020 / 08:00 The issuer is solely responsible for the content of this announcement.

CANCOM: Very high growth rates in the cloud segment and recurring revenues in the financial year 2019; moderate growth of Group expected for 2020.

- Group revenue increases by 17.6 percent to EUR 1,549.3 million and EBITDA (adjusted) by 14.7 percent to EUR 130.5 million in the 2019 financial year.

- Cloud Solutions segment achieves revenue growth of 27.6 percent, of which 20.0 percent is organic. Revenue growth of 15.4 percent in the IT Solutions segment, 10.5 percent of which is organic.

- Recurring revenues (Annual Recurring Revenue) as at 31 December 2019 at EUR 183.9 million, 41.3 percent above the previous year's figure.

- The Executive Board proposes an unchanged dividend of EUR 0.50 and forecasts moderate growth in sales and earnings for the CANCOM Group in 2020.

Munich, Germany, 28 April 2020 - In the financial year 2019, the CANCOM Group generated sales of EUR 1,549.3 million. This represented an increase of 17.6 percent over the previous year (modified previous year: EUR 1,317.3 million*). Organic sales growth was 12.2 percent. Both Group segments contributed to these high growth rates.The CANCOM Group's EBITDA (adjusted) rose to EUR 130.5 million, an increase of 14.7 percent over the previous year (modified previous year: EUR 113.8 million). The CANCOM Group's EBITDA under IFRS, i.e. without adjustment, was EUR 119.2 million (modified previous year: EUR 103.9 million*). The EBITDA margin (adjusted) was therefore 8.4 percent (modified previous year: 8.6 percent).

The group segment Cloud Solutions contributed to the successful 2019 financial year with revenue growth of 27.6 percent to EUR 300.6 million (modified previous year: EUR 235.5 million). Organic growth amounted to 20.0 percent. At EUR 81.9 million, EBITDA (adjusted) was up 28.4 percent on the comparative figure (modified previous year: EUR 63.8 million). The EBITDA margin (adjusted) rose accordingly to 27.3 percent (modified prior year: 27.0 percent). Annual Recurring Revenue at the end of the year was 41.3 percent higher than the previous year's figure, at EUR 183.9 million (modified previous year: EUR 130.1 million).

In the Group segment IT Solutions, CANCOM achieved sales growth of 15.4 percent to EUR 1,248.7 million (modified previous year: EUR 1,081.8 million). Organic growth was 10.5 percent. EBITDA (adjusted) was 2.0 percent above the comparable figure, at EUR 62.7 million (modified previous year: EUR 61.5 million). The EBITDA margin (adjusted) fell accordingly to 5.0 percent (modified prior year: 5.7 percent).

The operating cash flow improved to EUR 129.8 million (modified previous year: EUR 81.9 million). Cash and cash equivalents as of 31 December 2019 amounted to EUR 364.9 million (modified previous year: EUR 135.2 million).

"We have achieved a very dynamic development in the 2019 financial year. We achieved high growth rates, particularly in the cloud solutions business, which is important for our strategy, and even 41.3 percent in the particularly profitable Annual Recurring Revenue. Looking ahead to 2020, we are also entering the corona crisis with a high level of cash, a high equity ratio and only very low bank debt. We are therefore also proposing an unchanged dividend of EUR 0.50 per share. CANCOM will certainly be affected by disruptions in the IT supply chain and our customers are also affected by the crisis measures. But: we still assume that CANCOM will continue to grow in 2020, and we also see an opportunity in this crisis! After all, digital forms of working and living together are currently being discussed and used more intensively than ever before," said Rudolf Hotter, CEO of CANCOM SE.

Forecast 2020Against the background of the drastic economic downturn in Europe and the USA expected by the International Monetary Fund and the outbreak of the corona virus, the Executive Board of CANCOM SE forecasts a moderate increase in revenue for the CANCOM Group in the 2020 financial year. Group gross profit, Group EBITDA and Group EBITA are also expected to increase moderately compared to the previous year.For the group segment IT Solutions, the Executive Board expects a moderate increase in revenue and a moderate increase in gross profit, EBITDA and EBITA.For the group segment Cloud Solutions the Executive Board expects a significant increase in revenue, gross profit, EBITDA and EBITA. In addition, a significant increase in Annual Recurring Revenue (ARR) is expected compared to the figure for December 2019.

Publication of Annual Report 2019 on 30 April 2020The Executive Board of CANCOM SE and the auditor KPMG expect the publication of CANCOM Group's full annual report for 2019 to take place in the evening of 30 April 2020, as the audit process has not yet been fully completed. The 2019 annual report will be published on http://www.cancom.de in the Investors section.

Notes:*Original figures for the previous year: Revenue EUR 1,378.9 million; EBITDA EUR 104.9 million. The previous year's figure was adjusted due to a correction in relation to the application of IFRS 15. Specifically, this involved adjustments to the accounting treatment of warranty and maintenance contracts and certain warranties.

About CANCOMAs 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 worldwide, the internationally active CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium, Great Britain, and the USA. The CANCOM Group is led by Rudolf Hotter (CEO) and Thomas Stark (CFO). The company is headquartered in Munich. CANCOM has an annual revenue of around EUR 1.5 billion and its parent company, CANCOM SE, is listed in the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

ContactSebastian BucherManager Investor Relations+49 89 54054 5193sebastian.bucher@cancom.de

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General information on the use of data by CANCOMCANCOM 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 widerspruch@cancom.de or to ir@cancom.deFor 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/

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CANCOM: Very high growth rates in the cloud segment and recurring revenues in the financial year 2019; moderate growth of Group expected for 2020. -...