Company Announcement no. 10/2023
May 17, 2023
Company reg. no: 15 50 52 81
SimCorp Interim Report Q1 2023
Accelerating growth momentum in the first quarter of 2023
Q1 2023 highlights
In Q1 2023, SimCorp accelerated its growth momentum across all revenue metrics. Forward-
looking Annual Recurring Revenue (ARR) grew by 12.6% in local currency compared to ARR by
the end of Q1 2022. Ratable revenue amounted to EUR 142.3 million in Q1 2023, reflecting local
currency growth of 11.8%.
Reported revenue was EUR 136.3 million in Q1 2023 (Q1 2022: EUR 114.7 million), equivalent to an
increase of 18.8% in reported terms and 18.6% when measured in local currencies. EBIT excluding
special items was EUR 28.3 million (EUR 16.3 million in Q1 2022), corresponding to an EBIT-
margin of 20.8%. The execution of the cost efficiency program FuEL is on track and the cost
reduction targets are confirmed. Restructuring costs amounted to EUR 5.4 million in the quarter
(special items of EUR 0.8 million in Q1 2022).
SimCorp generated Free Cash Flow of EUR 45.6 million in Q1 2023, representing a significant
improvement compared to EUR 20.1 million in Q1 2022. The improvement was driven by stronger
underlying profitability and enhanced working capital management.
In Q1 2023, SimCorp signed two new clients: i) a US-based insurance company for Dimension
SaaS solution, Investment Operation Solution and Data Management Services and ii) a large
asset manager in Singapore for client reporting. A number of expansionary SimCorp Dimension
license contracts were signed in Q1 2023, including two migrations from on-premise to SaaS.
On 27 April, SimCorp and Deutsche Börse entered into an announcement agreement pursuant
to which Deutsche Börse will make an all-cash voluntary recommended takeover offer to
acquire all SimCorp shares at a price of DKK 735.0 per share. The offer is subject to a number
of conditions, including necessary regulatory approvals.
Based on the performance in Q1 2023, SimCorp confirms the financial guidance for 2023.
Measured in local currency, it is expected that ARR will grow 12-17%, ratable revenue will grow
6-11% and the EBIT margin is expected to be 21-24%, excluding special items (costs related to
the execution of Programme FuEl and M&A-related transaction costs).
SimCorp CEO, Christian Kromann, comments:
“The first quarter of 2023 has been a solid start to the year. We continue to transform the company
across our product offering, our services and our organization. Our SaaS implementations are
successful, and we see continued strong market demand for our offerings. We are today confirming
our financial guidance for 2023 as well as our mid-term target of returning to record-high
profitability”
Key financial highlights
2023
Q1
2022
Q1
2022
FY
2023
Outlook
EUR million, unless otherwise stated
Organic ARR growth (%)
12.6%
11.8%
142.3
136.3
N/A1
11.3%
124.3
114.7
11.7%
5.3%
12-17%
6-11%
Organic growth of ratable revenue (%)
Ratable revenue
489.0
561.0
Reported revenue
21-24%
EBIT-margin, excluding special items (%)
20.8%
14.2%
24.2%
(local currencies)
EBIT, excluding special items
Special Items
28.3
-5.4
22.9
16.3
-0.8
15.5
135.8
-9.9
Reported EBIT
125.9
1
ARR is an alternative performance measure introduced in the Annual Report 2022.