Company Announcement
SimCorp reports revenue growth of 6.9% and EBIT margin of 21.8% in Q1 2021
Outlook for the financial year 2021*)
SimCorp generated a financial result during the first three months of 2021 in line with SimCorp’s
expectations. SimCorp’s intake of license contract orders and revenue recognition varies
considerably from one period to the next.
The Q1 2021 intake of orders was EUR 12.6m compared with EUR 19.9m Q1 2020. SimCorp enters
Q2 2021 with signed revenue of EUR 341m for 2021, compared with EUR 322m at the same time in
2020. So far in Q2, one initial SimCorp Dimension contract and one new SimCorp Coric contract
have been signed.
SimCorp maintains its expectations for 2021 as announced in its Annual Report 2020, i.e the
expectations for 2021 are to grow revenue in local currencies by between 6% and 11%, and to
generate an EBIT margin measured in local currencies of between 24.5% and 27.5%.
Conversions from perpetual to subscription-based licenses are expected to be lower in 2021
compared with 2020, having an estimated 2%-points negative impact on revenue growth. Partially
offsetting the impact of fewer conversions, renewals of existing contracts are expected to be higher
in 2021 compared with 2020, having an estimated 1%-point positive impact on revenue growth. In
total, conversions and renewals are expected to have an estimated negative impact on the revenue
growth of 1%-point and an estimated 0.7%-points negative impact on EBIT margin, which is included
in the guidance.
Software updates and support revenue is estimated to be at the same level in 2021 as in 2020 as
growth from new agreements with initial and existing clients, and small price increases due to low
inflation, are expected to be offset by conversions and cancellations of existing contracts.
On a macroeconomic level, SimCorp regards the underlying trends for 2021 as slightly negative to
its business, due to the continued challenges caused by the COVID-19 pandemic. SimCorp expects
COVID-19 restrictions to be maintained until planned vaccine programs have been successfully
implemented across its markets. In the short term, this is expected to lead to some hesitancy in
clients’ decision making, thereby causing longer sales processes. Hence, it is assumed that H1 2021
will be impacted by COVID-19 restrictions, while H2 2021 is expected to be less impacted as the
world returns to more normal working conditions.
Based on the exchange rates prevailing at April 30, 2021, SimCorp estimates reported revenue to
be negatively impacted from currency fluctuations by around 1.0% (previously negative 1.2%) and
reported EBIT margin to be negatively impacted from currency fluctuations by around 0.3%-points
(previously negative 0.1%-points).
*) This announcement contains certain forward-looking statements and expectations in respect of the 2021
financial year. Such forward-looking statements are not guarantees of future performance, and involve risk
and uncertainty, and actual performance may deviate materially from that expressed in such forward-looking
statements due to a variety of factors. Readers are warned not to rely unduly on such forward-looking
statements which apply only as at the date of this announcement. The Group’s revenue will continue to be
impacted by relatively few but large system orders, and such orders are expected to be won at relatively
irregular intervals. The terms agreed in the individual license agreements will determine the impact on the
order book and on license income for any specific financial reporting period. Accordingly, license revenue is
likely to vary considerably from one quarter to the next. Unless required by law or corresponding obligations
SimCorp A/S is under no duty and undertakes no obligation to update or revise any forward-looking statement
after the distribution of this document, whether as a result of new information, future events or otherwise.
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