Munich, July 30, 2020 - According to preliminary figures, Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) achieves sales growth in the first half of 2020 (January 1, 2020 - June 30, 2020) at the level originally planned before the outbreak of the COVID-19 pandemic. Due to lower costs, EBITDA for the Group as a whole was even significantly higher than planned for the first half of the year. Growth was driven in particular by the strong EBITDA growth of the Nagarro Group, which is planned to be spun off. Consolidated results, particularly in the second quarter, were positively impacted by temporary cost control measures in the course of the COVID-19 pandemic as well as influenced by the development of exchange rates. Overall, the business of all major parts of Allgeier Group in the first half of 2020 proved to be stable and largely resilient to the consequences of the COVID-19 pandemic. With the measures taken and the global shift of employees to the home office, we have continued to service our customers and work on projects in a safe and productive manner without major restrictions.

Business development in the first half of 2020

In total, Allgeier Group's turnover in the first half of 2020 rose by 4 percent to EUR 394.8 million (previous year: EUR 380.8 million) compared to the first six months of 2019. Group gross profit (defined as total operating performance less the cost of sales and personnel expenses directly attributable to sales) increased by 11 percent to EUR 117.9 million in this period (previous year: EUR 106.1 million). Adjusted Group EBITDA (earnings before depreciation of property, plant and equipment and amortization of intangible assets, as well as interest and taxes, adjusted for extraordinary items and items relating to other periods) for the period amounted to EUR 47.9 million (previous year: EUR 29.0 million), corresponding to an increase of 65 percent over the same period of the previous year. Group EBITDA (earnings before depreciation of property, plant and equipment and amortization of intangible assets, as well as interest and taxes) grew by 68 percent to EUR 43.2 million in the reporting period (previous year: EUR 25.7 million). Group EBIT (earnings before interest and taxes) amounted to EUR 25.5 million (previous year: EUR 10.6 million), representing an increase of 141 percent.

*Total Group in accordance with IFRS, figures in EUR million (unless stated otherwise)

Revenues of the Nagarro Group, which is to be spun off, increased by 14 percent to EUR 216.0 million (previous year: EUR 188.9 million). The unit's adjusted EBITDA increased by 54 percent to EUR 37.2 million (previous year: EUR 24.1 million).

For the Allgeier Group's business remaining after the intended spin-off, turnover in the first half of 2020 fell by 7 percent to EUR 178.7 million (previous year: EUR 192.0 million) compared to the same period of the previous year. This decline is due to the planned reduction of 13 percent in sales to EUR 115.3 million in the Allgeier Experts division (previous year: EUR 132.8 million). Adjusted EBITDA of the Allgeier Group remaining after the intended spin-off rose by 118 percent to EUR 10.7 million (previous year: EUR 4.9 million).

Business development in the second quarter of 2020

In the second quarter of 2020 (April 1, 2020 - June 30, 2020), the Allgeier Group slightly increased its turnover to EUR 192.0 million (previous year: EUR 191.1 million) compared to the same period of the previous year. During the same time, value added increased by 10 percent to EUR 59.4 million (previous year: EUR 54.2 million). At EUR 27.0 million, adjusted Group EBITDA was 81 percent up on the prior-year period (previous year: EUR 14.9 million). Group EBITDA for the second quarter amounted to Euro 25.4 million (previous year: Euro 12.3 million), representing an increase of 107 percent over the same period in the previous year. Group EBIT rose by 240 percent to Euro 16.3 million (previous year: Euro 4.8 million).

Key figures of the balance sheet as of 30 June 2020

According to preliminary figures, consolidated equity decreased to EUR 159 million as of the balance sheet date 30 June 2020 (December 31, 2019: EUR 166 million). The change in equity is determined by the net profit for the year, the acquisition of shares from non-controlling shareholders and currency translation adjustments. At the end of the second quarter of 2020, the Allgeier Group had cash and cash equivalents of EUR 119 million (December 31, 2019: EUR 97 million). The Group's net financial liabilities (including liabilities from rental and lease agreements) fell to EUR 149 million at the reporting date (December 31, 2019: EUR 165 million). Non-current financial liabilities stood at EUR 170 million (December 31, 2019: EUR 150 million). Total assets amounted to EUR 604 million as at 30 June 2020 (December 31, 2019: EUR 587 million).

Outlook for the second half of 2020

Due to the continuing uncertainty about the possible consequences of the global COVID-19 pandemic on the global economy, the Management Board continues to refrain from issuing guidance for the remaining fiscal year 2020 at this time. The effects of the Corona crisis on the various business models of customers worldwide for the coming months cannot be estimated with sufficient clarity and reliability at this time. Due to the high degree of diversification of the Allgeier Group's customer spectrum in terms of size, region, industries and business models, the Management Board does not see any relevant cluster risks and assumes that the need of customers for support in the digitization of their business models will continue to increase significantly in the medium and long term and is likely to increase in the course of the current corona crisis.

Notes

Allgeier SE's half-yearly financial report 2020 will be published on August 14, 2020 and can then be viewed at www.allgeier.com.

All figures quoted were prepared in accordance with IFRS, are preliminary and unaudited.

It is also pointed out that statements for periods after June 30, 2020 represent expectations of the Management Board based on assumptions and estimates. Future actual developments and future actual results may differ from these assumptions and estimates. Allgeier SE gives no guarantee and assumes no liability that future developments and the actual results achieved in the future will correspond to the assumptions and estimates expressed in this ad hoc announcement.

This document contains supplementary financial indicators, which are or may be alternative performance indicators, not precisely defined in the relevant accounting framework. These supplementary financial indicators may have limited suitability as an analytical tool and should not be used in isolation or as an alternative to the financial indicators presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks in order to assess the net assets, financial position and results of operations of Allgeier SE. Other companies that present or report alternative performance indicators with a similar designation may calculate them differently and may therefore not be comparable. Further information on the alternative performance indicators used by Allgeier SE can be found in the Annual Report 2019.

Contact:

Allgeier SE
Corporate Communications & Investor Relations
Dr. Christopher Große
Einsteinstraße 172
81677 Munich
Phone: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11
E-mail: [email protected]
Web: www.allgeier.com