Allgeier : Q1 interim information 2024 (371 KB)

Interim information

as of the First Quarter of 2024

Allgeier SE supports the digital transformation with comprehensive software and IT services

Allgeier is a technology company for digital transformation. The companies belonging to the Allgeier Group support their customers in Germany and abroad with comprehensive software and IT services to meet the challenges of digital change and the digitalization and transformation of critical business processes. With over 2,000 customers, the broad and stable customer base consists of global corporations, dynamic SMEs and public sector clients at all federal levels. The service portfolio ranges from proprietary software products and platforms to high-end software development, consulting and the design of digitalization solutions to long-term support for software applications in the cloud or other environments.

In the two Group segments Enterprise IT and mgm technology partners, more than 3,500 employees work at a total of 46 locations worldwide in the DACH region, France, Spain, Portugal, Poland and the Czech Republic as well as in India, Vietnam, and the USA. In the 2023 fiscal year, Allgeier generated revenue of just under EUR 500 million. According to the Lünendonk® List 2023, Allgeier is one of the leading IT service companies in Germany. Allgeier SE is listed on the Regulated Market of the Frankfurt Stock Exchange in the General Standard (WKN A2GS63, ISIN DE000A2GS633). Further information can be found at www.allgeier.com

Contents

Company and Key Indicators at a Glance	3
Interim information on business performance in the first quarter of 2024	4
Unaudited interim information as of the first quarter of 2024	7
Consolidated Statement of Financial Position	7
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Changes in Equity	10
Consolidated Cash Flow Statement	11
Other Notes	12
Legal Notice	13
Financial Calendar • Imprint	14

Company and Key Indicators at a Glance

Company and Key Indicators at a Glance

Further information and the company's latest news can be found at www.allgeier.com.

Group key figures1	Q1 2024	Q1 2023	Change in percent 2
Revenue	112.8	124.1	-9.1%
Gross profit	38.6	39.6	-2.5%
Gross margin 2	33.7%	31.5%
Adjusted EBITDA 3	11.2	12.5	-10.5%
Adjusted EBITDA margin 2, 3	9.8%	10.0%
EBITDA	10.7	12.0	-10.9%
EBIT	4.1	6.3	-35.1%
	Mar. 31, 2024	Dec. 31, 2023	Change in percent 2
Total assets	498.0	524.8	-5.1%
Equity	189.6	189.2	0.2%
Number of employees	3,590	3,554	1.0%

1. Continuing operations, disclosures in EUR million (unless otherwise stated)
2. Percentages calculated with non-rounded values
3. EBITDA before extraordinary effects or effects relating to other periods

Revenue1 in EUR m

Q1 2023
					124.1
Q2 2023
			117.4
Q3 2023					121.8
Q4 2023						125.1
Q1 2024
		112.8

0

20

40

60

80

100

120

140

Gross margin1,2 in %

Q1 2023
	31.5
Q2 2023			32.7
Q3 2023						34.4
Q4 2023
				33.6
Q1 2024
			33.7

0	10		20				30		40
Adjusted EBITDA1,3 in EUR m
Q1 2023
					12.5
Q2 2023
				11.9
Q3 2023
							15.7
Q4 2023											21.2
Q1 2024
			11.2
0	5	10	15		20	25

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Interim information on business performance in the first quarter of 2024

Interim information on business performance in Q1 2024

Business performance in the first quarter of 2024

In the first quarter of 2024, the Allgeier Group generated revenue of EUR 112.8 million in continuing operations (previous year: EUR 124.1 million), corresponding to a year-on-year reduction of 9 percent. The reduction in revenue compared to the first quarter of the previous year is mainly due to the gradual reduction of low-margin business in the personnel services segment since the second quarter of 2023. Overall, revenue in the personnel services business was reduced by around EUR 45 million over the course of the year 2023. This corresponds to a reduction in quarterly revenue of around EUR 15 million in each case, as the reduction only applies from the second quarter of 2023. Compared to the first quarter of 2023, revenue in this business segment was down by around EUR 14 million in the first quarter of 2024, which corresponds to a reduction of more than 30 percent. In contrast, revenue in the other business areas increased by a total of EUR 4 million compared to the first quarter of 2023, which corresponds to growth of 5 percent. Gross profit (defined as total operating performance less revenue and personnel costs directly attributable to revenue) amounted to EUR 38.6 million (previous year: EUR

39.6 million) and was only slightly below the previous year's figure by 3 percent despite the decline in revenue. The gross margin increased accordingly to 33.7 percent (previous year: 31.5 percent). Indirect costs were slightly above the level of the first quarter of 2023. This is due to the fact that, in tandem with the reduction of costs in the areas with reduced revenue, further investments will be made in the expansion of business in the growth areas over the course of the year. We expect to see rising revenue and increased capacity utilization in these areas over the course of the year, particularly from the second half of the year.

At EUR 11.2 million, adjusted EBITDA (EBITDA before extraordinary or prior-period effects) was down 11 percent on the first quarter of the previous year (previous year: EUR

1. million), corresponding to an adjusted EBITDA margin of 9.8 percent (previous year:

1. percent). EBITDA amounted to EUR 10.7 million (previous year: EUR 12.0 million), corresponding to an EBITDA margin of 9.4 percent (previous year: 9.6 percent). With an

increase in write-offs, EBIT amounted to EUR 4.1 million (previous year: EUR 6.3 million). The Group's EBT after the financial result amounted to EUR 1.1 million (previous year: EUR 3.9 million). After deducting income tax expenses of EUR 0.4 million (previous year: EUR 1.3 million), Allgeier achieved a profit of EUR 0.7 million in the first three months of 2024 (previous year: EUR 2.6 million).

The undiluted EPS, calculated on the basis of the three-month result less earnings attributable to non-controlling interests, amounted to EUR -0.02 (previous year: EUR 0.12). Adjusted for write-offs from acquisition activities and calculated using a normalized tax rate of 30 percent, EPS for the first quarter of 2024 was EUR 0.09 (previous year: EUR 0.24). To present adjusted earnings per share, the Allgeier Group corrects the reported EBIT to reflect the amortization of intangible assets capitalized in connection with company acquisitions (effects of purchase price allocation), income and expenses from purchase price adjustments in profit or loss and other one-time and prior-period effects.

(in EUR million) *	Q1 2024	Q1 2023
Profit from operating activities (EBIT as reported)	4.1	6.3
Amortization of intangible assets from acquisitions	1.1	1.1
Other non-recurring and prior-period effects	0.5	0.5
Financial result	-3.0	-2.3
Adjusted earnings before taxes	2.6	5.6
Tax rate	30%	30%
Taxes	-0.8	-1.7
Adjusted profit or loss for the period	1.9	3.9
Non-controlling interests	-0.9	-1.2
Earnings for calculation of adjusted earnings per share	1.0	2.7
Number of shares outstanding	11,444,313	11,427,513
Adjusted earnings per share in EUR (basic)	0.09	0.24
*unless stated otherwise

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Interim information on business performance in the first quarter of 2024

Development of cash flows in the first quarter of 2024

The cash flow from operating activities before changes in working capital from continuing operations amounted to EUR 7.4 million in the first six months of 2024 (previous year: EUR

1. million). The cash flow from changes in working capital was EUR -1.1 million (previous year: EUR -12.8 million). Including the cash flow from changes in working capital, this resulted in a cash flow from operating activities of EUR 6.2 million in total (previous year: EUR -4.2 million). Cash flow from investing activities for the period amounted to EUR -8.9 million (previous year: EUR -7.6 million). This includes payments of EUR 7.6 million (previous year: EUR 6.9 million) for investments in noncurrent assets, including lease payments, and payments of EUR 1.3 million (previous year: EUR 3.5 million) for acquisition activities. The Allgeier Group received a cash inflow of EUR 0.0 million from sale and leaseback transactions (previous year: EUR 2.7 million). Net cash from financing activities recorded a net outflow of EUR 23.6 million in the first three months of 2024 (previous year: EUR 15.4 million). Net interest payments amounted to EUR 1.7 million net (previous year: EUR 1.3 million net) and new bank loans amounted to EUR 5.5 million net (previous year: EUR 11.0 million). Factoring resulted in a repayment of EUR 16.4 million (previous year: EUR 3.1 million). As a result of cash flows from operating, investing and financing activities, cash and cash equivalents went from EUR 68.4 million on December 31, 2023 to EUR

1. million on March 31, 2024.

Key statement of financial position data as of March 31, 2024

Total equity and liabilities amounted to EUR 498.0 million as of the reporting date of March 31, 2024 (December 31, 2023: EUR 524.8 million). Non-current assets amounted to EUR

1. million as of March 31, 2024 and were thus slightly lower than the level at the end of 2023 (December 31, 2023 (December 31, 2023: EUR 358.0 million). Within non-current assets, intangible assets were virtually unchanged at EUR 292.0 million (December 31, 2023: EUR 290.4 million) with property, plant and equipment of EUR 10.4 million (December 31, 2023: EUR 9.8 million). Right-of-use assets from leases fell slightly, to EUR
2. million (December 31, 2023: EUR 44.0 million). Current assets decreased to EUR

1. million at the end of the reporting period (December 31, 2023: EUR 166.7 million). Trade receivables fell slightly to EUR 66.3 million (December 31, 2023: EUR 68.2 million). The Allgeier Group also had cash funds of EUR 45.7 million at its disposal as of the end

of the first quarter of 2024 (December 31, 2023: EUR 83.0 million). As part of the Allgeier

Group's cash management, bank liabilities of EUR 9.5 million (previous year: EUR 11.0

million) and factoring of customer receivables of EUR 16.4 million (previous year: EUR 3.1 million) were paid from cash and cash equivalents in the first quarter of 2024. All other current liabilities rose from EUR 15.5 million at the end of 2023 to EUR 28.4 million on March 31, 2024.

On the liabilities side, Group equity increased slightly to EUR 189.6 million as of the reporting date of March 31, 2024 (December 31, 2023: EUR 189.2 million). Accordingly, as a result of the rise in equity relative to the decline in total assets, the equity ratio increased from 36.1 percent at the end of 2023 to 38.1 percent in the first quarter of 2024.

Non-current liabilities decreased to EUR 194.6 million as of March 31, 2024 (December 31, 2023: EUR 201.3 million). Within non-current liabilities, non-current financial liabilities decreased to EUR 135.4 million (December 31, 2023: EUR 139.6 million). Non-current lease liabilities fell to EUR 32.3 million (December 31, 2023: EUR 34.5 million). Current liabilities amounted to EUR 113.9 million as of March 31, 2024 (December 31, 2023: EUR

134.3 million). Within these current liabilities, financial liabilities fell by EUR 11.0 million to EUR 3.5 million (December 31, 2023: EUR 14.5 million). Current liabilities from rental and lease agreements decreased to EUR 11.1 million (December 31, 2023: EUR 11.3 million). Other current liabilities fell from EUR 108.5 million to EUR 99.2 million. Net debt as the sum of financial liabilities and liabilities from rental and lease agreements less cash and cash equivalents amounted to EUR 136.6 million as of the reporting date of March 31, 2024 (December 31, 2023: EUR 116.8 million).

Acquisition of Ability GmbH

Allgeier Inovar GmbH, Bremen, acquired all shares in Ability GmbH, based in Ravensburg, by purchase and transfer agreement dated January 30, 2024. The company, in turn, holds all shares in Ability GmbH, based in Rankweil (Austria) (collectively referred to as "Ability"). Ability is an IT solutions developer and consulting company with around 200 customers from the retail, manufacturing and real estate industries. The company is one of the largest Microsoft partners in the DACH region. In addition to Microsoft Dynamics 365 Expertise, particularly in ERP Business Central, Ability has an integrated software ecosystem for document management and digital workflows. The portfolio also includes solutions for the

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Interim information on business performance in the first quarter of 2024

evaluation, analysis and visualization of data as well as portals and apps for cross-system processes. With this acquisition, Allgeier strengthens its market position as one of the leading companies for Microsoft ERP software and consulting and expands its comprehensive service portfolio with additional teams of experts, particularly in southern Germany, Austria and Switzerland. Ability generated sales revenue of EUR 5.0 million in the 2023 fiscal year. The measurement of assets and liabilities for the purposes of first- time consolidation had not been finalized at the time of completion of Allgeier SE's interim report for Q1 2024.

Annual General Meeting and dividend proposal

The Management Board and the Supervisory Board have resolved to propose to the Annual General Meeting to use the net retained profits of Allgeier SE of EUR 14,162,848.21 as of December 31, 2023 to distribute a dividend of EUR 0.50 per entitled share. Allgeier SE's Annual General Meeting will be held in person, i.e. with shareholders and their authorized representatives in attendance, in Munich on June 25, 2024. Further information will be published with the invitation to the Annual General Meeting on the company's website at the following address: https://www.allgeier.com/en/investor- relations/shareholders-meeting/

Outlook for fiscal year 2024

Allgeier SE expects a development for the full year 2024 that is in line with the guidance published for 2024, which was published in the ad hoc announcement of December 14, 2023 and in the 2023 Annual Report.

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Consolidated Statement of Financial Position

Unaudited interim information as of the first quarter of 2024

Consolidated statement of financial position of Allgeier SE, Munich, as of March 31, 2024 (unaudited)

Consolidated Statement of Financial Position (in EUR thousand)
Assets	Mar. 31, 2024	Dec. 31, 2023
Intangible assets	292.034	290.441
Property, plant and equipment	10.367	9.757
Right-of-use assets from leases	41.676	44.044
Non-current contract costs	251	287
Other non-current financial assets	8.586	8.233
Other non-current assets	121	629
Deferred tax assets	4.607	4.623
Non-current assets	357.643	358.015
Inventories	1.769	1.249
Current contract costs	144	144
Contract assets	8.166	1.671
Trade receivables	66.281	68.180
Other current financial assets	2.397	2.563
Other current financial assets	14.396	6.136
Income tax receivables	1.505	3.757
Cash	45.735	83.041
Current assets	140.393	166.741
Assets	498.037	524.756

Consolidated Statement of Financial Position
(in EUR thousand)
Equity and liabilities	Mar. 31, 2024	Dec. 31, 2023
Issued capital	11.444	11.444
Capital reserves	71.564	71.509
Retained earnings	102	102
Profit carryforward	50.866	37.788
Profit or loss for the period	-180	13.078
Changes in equity in accumulated OCI	4.241	4.654
Equity attributable to shareholders of the parent company	138.037	138.576
Equity attributable to non-controlling shareholders	51.530	50.620
Equity	189.567	189.196
Non-current financial liabilities	135.398	139.616
Non-current liabilities from rental and lease agreements	32.324	34.457
Non-current provisions	1.424	1.388
Non-current contract liabilities	72	312
Other non-current financial liabilities	16.446	16.304
Deferred tax liabilities	8.932	9.214
Non-current liabilities	194.596	201.291
Current financial liabilities	3.546	14.460
Current liabilities from rental and lease agreements	11.090	11.344
Current provisions	14.756	16.111
Current contract liabilities	9.783	4.970
Trade payables	20.046	26.942
Other current financial liabilities	35.936	37.761
Other current liabilities	8.834	7.810
Income tax liabilities	9.883	14.869
Current liabilities	113.874	134.268
Equity and liabilities	498.037	524.756

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Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income of Allgeier SE, Munich, for the period from January 1, 2024, to March 31, 2024 (unaudited)

Consolidated Statement of Comprehensive Income (in EUR thousand)

		Total			Discontinued operations		Continuing operations
	o
	t	Jan. 1, 2024	Jan. 1, 2023		Jan. 1, 2024	Jan. 1, 2023		Jan. 1, 2024	Jan. 1, 2023
Income Statement	e	to Mar. 31, 2024	to Mar. 31, 2023	#	to Mar. 31, 2024	to Mar. 31, 2023	#	to Mar. 31, 2024	to Mar. 31, 2023
	2
Revenue	6	112.827		124.257		0	181		112.827	124.076
Other own work capitalized		1.807		1.509		0	0		1.807	1.509
	2
Other operating income	7	211		534		0	10		211	524
	2
Cost of materials	8	27.705		41.780		0	211		27.705	41.569
	2
Staff costs	9	66.718		62.863		0	0		66.718	62.862
Impairment on trade receivables and contract assets		32		2		0	3		32	-1
	3
Other operating expenses	0	9.670		9.669		0	23		9.670	9.645
Earnings before interest, taxes, depreciation and amortization		10.719		11.987		0	-46		10.719	12.033
	3
Depreciation, amortization and impairment	1	6.660		5.785		0	8		6.660	5.777
Results of operating activities		4.059		6.202		0	-54		4.059	6.256
	3
Finance income	2	148		36		0	0		148	36
	3
Financial expenses	3	3.145		2.362		0	0		3.145	2.362
Earnings before taxes		1.063		3.876		0	-54		1.063	3.931
	3
Net income taxes	4	-374		-1.324		0	-1		-374	-1.323
Profit for the period before gains and losses on disposals		689		2.552		0	-55		689	2.608
Profit or loss for the period attributable to:
shareholders of the parent company		-180		1.347		0	-44		-180	1.391
non-controlling interests		869		1.206		0	-11		869	1.217
Basic earnings per share:
Average number of shares outstanding weighted pro rata temporis		11.444.313		11.427.513		11.444.313	11.427.513		11.444.313	11.427.513
Earnings per share for the period in EUR	5	-0,02		0,12		0,00	0,00		-0,02	0,12
Diluted earnings per share:
Average number of shares outstanding weighted pro rata temporis		11.550.098		11.641.157		11.550.098	11.641.157		11.550.098	11.641.157
Earnings per share for the period in EUR	5	-0,02		0,12		0,00	0,00		-0,02	0,12

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Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income of Allgeier SE, Munich, for the period from January 1, 2024, to March 31, 2024 (unaudited)

Consolidated Statement of Comprehensive Income (in EUR thousand)

		Total			Discontinued operations		Continuing operations
		Jan. 1, 2024	Jan. 1, 2023		Jan. 1, 2024	Jan. 1, 2023		Jan. 1, 2024	Jan. 1, 2023
Other comprehensive income		to Mar. 31, 2024	to Mar. 31, 2023		to Mar. 31, 2024	to Mar. 31, 2023		to Mar. 31, 2024	to Mar. 31, 2023
Items that cannot be reclassified to the income statement:
Actuarial gains (losses)		16		0		0	0		16	0
Tax effects		-4		0		0	0		-4	0
		12		0		0	0		12	0
Items that can be reclassified to the income statement:
Foreign exchange differences		-618		-112		0	-1		-618	-110
Change in value of interest rate hedging derivative		338		-217		0	0		338	-217
Deferred taxes from the remeasurement of the interest rate hedging derivative		-105		67		0	0		-105	67
		-385		-261		0	-1		-385	-260
Other comprehensive income for the period		-373		-261		0	-1		-373	-260
Comprehensive income for the period		316		2.291		0	-57		316	2.348
Total comprehensive income for the period attributable to:
shareholders of the parent company		-594		1.111		0	-45		-594	1.156
non-controlling interests		909		1.181		0	-11		909	1.192

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Consolidated Statement of Changes in Equity

Consolidated Statement of Changes in Equity of Allgeier SE, Munich, as of March 31, 2024 (unaudited)

Consolidated Statement of Changes in Equity (in EUR thousand)
									Equity
									attributable to	Equity
								Changes in	shareholders of	attributable to
				Retained		Profit	Profit or loss for	equity not	the parent	non-controlling
		Issued capital	Capital reserves	earnings		carryforward	the period	affecting income	company	shareholders	Equity
As of Jan. 1, 2023*	11.428	71.363		102	22.508	21.618	5.146	132.165	48.651	180.816
Transfer of profit or loss for the previous year to profit
carryforward		0	0		0	21.604	-21.604	0	0	0	0
Adjustment of the exercise price of stock options from the 2021
stock option plan		0	19		0	0	0	0	19	0	19
Interest rate hedging derivative		0	0		0	0	0	-150	-150	0	-150
Profit or loss for the period		0	0		0	0	1.347	0	1.347	1.206	2.552
Foreign currency translation differences		0	0		0	0	0	-87	-87	-25	-112
As of Mar. 31, 2023	11.428	71.382		102	44.112	1.360	4.910	133.827	49.831	183.126
As of Jan. 1, 2024	11.444	71.509		102	37.788	13.078	4.654	138.576	50.620	189.196
Transfer of profit or loss for the previous year to profit
carryforward		0	0		0	13.078	-13.078	0	0	0	0
Adjustment of the exercise price of stock options from the 2021
stock option plan		0	55		0	0	0	0	55	0	55
Actuarial gains (losses)		0	0		0	0	0	7	7	5	12
Interest rate hedging derivative		0	0		0	0	0	233	233	0	233
Profit or loss for the period		0	0		0	0	-180	0	-180	869	689
Foreign currency translation differences		0	0		0	0	0	-654	-654	36	-618
As of Mar. 31, 2024	11.444	71.564		102	50.866	-180	4.241	138.037	51.530	189.567

* Adjusted for the retrospective amendments to IAS 12

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