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SNP Schneider-Neureither & Partner DE0007203705

DGAP-News: SNP AG: Continued Upward Trend - Revenue and Financial Performance Much Higher in 2016 - Advances in Operational and Strategic Development (english)

03/30/17

SNP AG: Continued Upward Trend - Revenue and Financial Performance Much Higher in 2016 - Advances in Operational and Strategic Development

^ DGAP-News: SNP Schneider-Neureither & Partner AG / Key word(s): Final Results/Forecast SNP AG: Continued Upward Trend - Revenue and Financial Performance Much Higher in 2016 - Advances in Operational and Strategic Development

30.03.2017 / 08:05 The issuer is solely responsible for the content of this announcement.

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SNP | Corporate News

Continued Upward Trend for SNP AG - Revenue and Financial Performance Much Higher in 2016 - Advances in Operational and Strategic Development

2016 Consolidated Financial Statements:

- Group revenue reaches EUR 80.7 million (+44%)

- Above-average growth in software license revenue at EUR 12.0 million (+61%)

- Operating earnings (EBIT) increase to EUR 6.9 million (+50%)

- Earnings per share of EUR 0.95 (previous year: EUR 0.69)

- Dividend proposal: EUR 0.39 per share (+50%); payout ratio: 48%

- EBITDA margin: 10.6% (previous year: 10.4%)

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- EBIT margin: 8.5% (previous year: 8.1%)

2017 Outlook:

- Principle goal: consistent revenue growth - Group revenue climbs to between EUR 96 million and EUR 100 million

- With organic revenue growth of 10% to 15%, the Executive Board predicts an EBIT margin of between 9% and 11% and forecasts profitability of between 7% and 12% for higher overall growth (organic and inorganic)

Heidelberg, Germany, March 30, 2017 - In the 2016 fiscal year, SNP AG forged ahead on its path of profitable growth. In the consolidated financial statements, which are available now, the specialist for standard software for digital transformation reports strong growth in key business performance indicators. Also in the 2016 fiscal year, the company successfully advanced its strategic development and internationalization. As a result, the number of employees has increased by today to more than 720, at least a third of whom are working in non-German-speaking countries. At the beginning of 2016, SNP AG still had around 400 employees.

In particular, Group revenue grew 43.5% from EUR 56.2 million in the previous year to EUR 80.7 million in 2016. The significantly higher revenue volume led to slightly above-average earnings growth: Operating earnings (EBIT) improved by 49.8% from the previous year to EUR 6.9 million. In the process, SNP confirmed the figures for the 2016 fiscal year that it preliminarily announced in January 2017.

"The 2016 fiscal year was quite successful for SNP AG. This applies to the operating business as well as to strategic development and the safeguarding of sustainable growth. With the latest large-scale projects, we have raised SNP's public profile to a new level. SNP is always an option for today's global and highly complex transformation projects. This can be seen in requests for proposals and in how SNP is included in the earliest stages of planning. The approximately 50% increase in operating earnings to EUR 6.8 million is clear proof that our business model works. The trend in our software licensing is also quite positive. This much is certain: Transformation software is becoming an absolutely critical technology for handling ongoing corporate transformation processes. Therefore, our goal is clear: We want to continue to grow profitably and help create value for our customers," says Dr. Andreas Schneider-Neureither, Chief Executive Officer of SNP AG.

Key Figures for the 2016 Fiscal Year in Detail:

SNP AG generated Group revenue of EUR 80.7 million (previous year: EUR 56.2 million) in the 2016 fiscal year. This represents a revenue increase of 43.5% year over year. Aside from acquisition-related revenue growth, decisive factors were the sustained very good order situation as well as very good capacity utilization throughout the year given a significantly higher order backlog.

EUR 55.3 million in sales was generated in 2016 (previous year: EUR 42.4 million) in the DACH region (Germany, Austria and Switzerland). In the US market, revenue of EUR 13.1 million was generated in 2016; compared to the previous year, this corresponds to an increase of EUR 2.6 million or approximately 25%.

Both SNP business segments participated in this positive revenue and business performance. In the Professional Services consulting division, sales increased 42.0% to EUR 66.6 million (previous year: EUR 46.9 million). In the Software segment, which includes licensing and maintenance fees, revenue rose 48.9% to EUR 14.0 million in the same period (previous year: EUR 9.4 million). Growth in licensing sales in the Software segment was well above average. SNP generated revenue from software licensing of EUR 12.0 million in the 2016 fiscal year. This represents an increase of 61.1% from the previous year (previous year: EUR 7.4 million).

Despite continuous investments in growth, earnings before interest, taxes, depreciation and amortization (EBITDA) increased in the 2016 fiscal year to EUR 8.5 million (previous year: EUR 5.8 million). This represents an increase in EBITDA of 46.0% year over year and an EBITDA margin of 10.6% (previous year: 10.4%). In the same period, earnings before interest and taxes (EBIT) amounted to EUR 6.9 million (previous year: EUR 4.6 million). This represents an increase in EBIT of 49.8% from the previous year and an EBIT margin of 8.5% (previous year: 8.1%).

In the 2016 fiscal year, SNP generated positive operating cash flow of EUR 0.6 million (previous year: EUR 1.2 million). Cash flow from investing activities totaled EUR -9.4 million (previous year: EUR -5.0 million). This was offset by a positive cash flow from financing activities of EUR 26.8 million (previous year: EUR 11.9 million), which was primarily attributable to net proceeds of EUR 30.1 million from the capital increase in July 2016. Overall cash flow during the reporting period totaled EUR 18.1 million (previous year: EUR 13.8 million). The level of cash and cash equivalents increased to EUR 31.9 million as of December 31, 2016 (previous year: EUR 13.8 million).

In view of the positive performance in the 2016 fiscal year, the Executive Board and the Supervisory Board will propose at the General Meeting being held on May 31, 2017, that a dividend of EUR 0.39 per share be distributed for the 2016 fiscal year (previous year: EUR 0.34 per share; adjusted for the higher number of shares after the capital increase in 2016: EUR 0.26). With regard to the share in the profit and loss of SNP AG shareholders, this corresponds to a payout ratio of 48% (previous year: 49%).

2017 Outlook

As in previous years, it is assumed that in the current fiscal year revenue will not be evenly distributed over the quarters and that the second half of the year should be much stronger. Based on organic growth of up to 20%, the Executive Board expects Group revenue of between EUR 96 million and EUR 100 million in the 2017 fiscal year.

The Executive Board is pursuing the principle goal of consistent revenue growth for the SNP Group, in strict accordance with a structural increase in profitability. Furthermore, the Executive Board also aims to further improve market penetration via additional acquisitions and to tap into new sales markets. Independent from the required organic and inorganic growth investments, the profitability of the SNP Group is subject to an enormous range of fluctuation: with organic revenue growth of 10% to 15%, the Executive Board predicts an EBIT margin of between 9% and 11% for the 2017 fiscal year and forecasts profitability of between 7% and 12% for higher overall growth (organic and inorganic).

The 2016 Annual Report published today can be downloaded from the SNP website at

About SNP

SNP enables companies to successfully navigate the rapidly changing digital environment and seize their opportunities on the market with a highly flexible IT infrastructure. The solutions and software from SNP provide support for M&A projects and carve-outs, allow for the integration of previously divergent IT landscapes and promote expansion into new markets outside of the domestic space. With SNP Transformation Backbone(R), the company offers the world's first standardized software for automatically assessing and implementing changes to IT systems. This provides customers with clear qualitative advantages while notably reducing the time and expense involved in transformation projects.

SNP AG employs over 700 people across Europe, South Africa, Asia and the United States. Headquartered in Heidelberg, the company generated revenue of approximately EUR 81 million in 2016. Its customers include globally operating corporations in the industrial, financial and service sectors. SNP AG was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705).

Further information is available at www.snp-ag.com

Investor Relations Contact:

Marcel Wiskow Tel.: +49 6221 6425-637 Fax: +49 6221 6425-470 Email: investor.relations@snp-ag.com http://www.snp-ag.com/de/Investor-Relations/

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30.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

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Language: English Company: SNP Schneider-Neureither & Partner AG Dossenheimer Landstraße 100 69121 Heidelberg Germany Phone: +49 6221 6425 637 Fax: +49 6221 6425 470 E-mail: investor.relations@snp-ag.com Internet: www.snp-ag.com ISIN: DE0007203705 WKN: 720370 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange

End of News DGAP News Service ---------------------------------------------------------------------------

559787 30.03.2017

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