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30.03.2021
CANCOM: Revenue and EBITDA growth in Corona year 2020. Dividend increase and optimistic forecast for 2021

CANCOM: Revenue and EBITDA growth in Corona year 2020. Dividend increase and optimistic forecast for 2021.

- Group revenue increases by 6.5 percent to EUR 1,649.4 million in the 2020 fiscal year and EBITDA grows by 3.3 percent to EUR 123.1 million.

- Record revenue and EBITDA in the fourth quarter of 2020, with the CANCOM Group's EBITDA margin rising above ten percent for the first time.

- Cloud Solutions segment was the growth driver for the entire CANCOM Group in 2020, with double-digit growth rates in revenue, EBITDA and annual recurring revenue.

- Executive Board proposes dividend increase to EUR 0.75 per share and gives positive forecast for 2021.

Munich, Germany, 30 March 2021 - In the 2020 fiscal year, which was dominated by the global pandemic, the CANCOM Group increased its revenue by 6.5 percent to EUR 1,649.4 million (prior year: 1,549.3). 3.5 percent of this growth was achieved organically, i.e. without the effects of company acquisitions. Despite financial burdens from one-off effects in the first half of the year, the EBITDA of the CANCOM Group rose in 2020 to EUR 123.1 million (prior year: 119.2), an increase of 3.3 percent. This corresponds to an EBITDA margin of 7.5 percent (prior year: 7.7).

The CANCOM Group achieved good annual figures, viewed against the background of the worldwide restrictions due to the Corona pandemic, after an extremely successful fourth quarter. Quarterly revenue reached a new record of EUR 428.6 million (prior year: 422.8), as did EBITDA at EUR 45.4 million (prior year: 32.0) and the EBITDA margin at 10.6 percent (prior year: 7.6). This was the first quarter in which CANCOM exceeded the ten percent margin mark. "Such a margin is not considered achievable for a pure systems house. The fact that we were able to achieve this level of profitability demonstrates the performance of our enhanced business model, which combines high-quality system house business and a diverse managed services portfolio," said Rudolf Hotter, CEO of CANCOM SE.

Cloud Solutions is a growth driver for the entire Group

The Cloud Solutions segment, which comprises the managed services business and activities relating to the in-house IT management software AHP, was the growth driver for the CANCOM Group with a very strong fourth quarter and also with a view to the development over the year as a whole. In the 2020 financial year, the segment achieved an 18.5 percent increase in revenue to EUR 356.1 million (prior year: 300.6). Segment EBITDA rose by 13.7 percent to EUR 83.0 million (prior year: 73.0), which corresponds to an EBITDA margin of 23.3 percent (prior year: 24.3). Annual Recurring Revenue was 12.0 percent higher than the prior year at EUR 205.9 million (prior year: 183.9).

In the IT Solutions segment, which includes the system house business, CANCOM was able to increase annual revenue by 3.6 percent to EUR 1,293.2 million (prior year: 1,248.7). Segment EBITDA was slightly down on the prior year at EUR 60.5 million (prior year: 62.0). The EBITDA margin thus fell to 4.7 percent (prior year: 5.0).

The CANCOM Group's cash flow from operating activities amounted to EUR 68.2 million in the 2020 fiscal year (prior year: 129.8) and was largely influenced by pandemic-related increases in inventories and a high level of trade receivables. At EUR 338.4 million (prior year: 364.9), cash and cash equivalents as at 31 December 2020 were at a comparable level to the previous year and underline the solid financial resources with which the CANCOM Group can act in the Corona crisis.

"Many existing but also potential new customers are faced with the challenge of integrating solutions procured in the short term for immediate problem solving in the crisis into existing IT infrastructures in the long term. This has already boosted our service business in the fourth quarter and we expect positive impulses from this in 2021 as well," says Hotter. These business opportunities exist both in the area of one-off integration projects as well as in the conclusion of long-term managed services contracts, thus affecting both Group segments. "Against the background of the development achieved, the good liquidity situation and with a view to the opportunities in 2021, the Executive Board of CANCOM SE considers it appropriate to allow our shareholders to participate in our success by increasing the dividend to EUR 0.75," said Hotter.

More opportunities than risks: Positive forecast 2021

Under the currently foreseeable restrictions to contain the coronavirus pandemic, the Executive Board expects a significant increase in turnover above the level of the past fiscal year for the coming year. A significant increase is also expected for gross profit and EBITDA at Group level. For the Group EBITA, the Executive Board expects a very significant increase for the 2021 fiscal year.

In the Cloud Solutions segment, the Executive Board expects a very significant increase in revenue and EBITDA. In addition, a very significant increase in annual recurring revenue (ARR) is expected compared to the value as at 31 December 2020.

For the IT Solutions group segment, the Executive Board expects a significant increase in revenue as well as a significant increase in EBITDA.

The complete annual report 2020 of the CANCOM Group is published on the website www.cancom.de in the Investors section.

About CANCOM
As a Digital Transformation Partner, CANCOM accompanies companies into the digital future. CANCOM supports customers in reducing the complexity of their IT and expanding their business success through the use of state-of-the-art technology. In order to holistically map the IT needs of companies, organizations and the public sector, CANCOM offers custom-fit IT from A to Z from a single source.

The IT solutions offered by the CANCOM Group include consulting, implementation, services and the operation of IT systems. Customers benefit from the extensive expertise and a holistic and innovative portfolio that covers the IT requirements of companies necessary for a successful digital transformation. As a hybrid IT integrator and service provider, the company delivers a range of services and solutions that includes business solutions and managed services such as cloud computing, analytics, enterprise mobility, IT security, hosting and as-a-service offerings.

The internationally active CANCOM Group has around 4,000 employees worldwide and an efficient partner network to ensure market presence and customer proximity in countries such as Germany, Austria, Switzerland, Belgium, the UK and the USA.The CANCOM Group is managed by Rudolf Hotter (CEO) and Thomas Stark (CFO).

The company is headquartered in Munich. CANCOM generates annual revenues of around EUR 1.6 billion and the Group's parent company CANCOM SE is listed on the Frankfurt Stock Exchange in the MDAX and TecDAX (ISIN DE0005419105).

Contact:
Sebastian Bucher
Manager Investor Relations
+49 89 54054 5193
sebastian.bucher@cancom.de
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