adesso SE increases sales by 28 % to EUR 833 million after nine months / EBITDA margin significantly increased in the third quarter / Forecast adjustment

* Turnover rises by around 28 % after nine months to EUR 833 million

* Improved capacity utilisation rate since June 2023 leads to positive profitability trend

* Absolute EBITDA contribution of EUR 53 million after nine months below expectations

* Forecast adjustment for EBITDA to EUR 70 to 90 million with unchanged turnover of over 1 billion

* Growth path will continue in 2024; return to usual profitability expected

Based on preliminary figures for the third quarter of 2023, adesso increased sales by 19 % year-on-year to EUR 288 million. With an EBITDA margin of 9.8 %, profitability was noticeably increased compared to the first half of 2023, in line with the measures introduced and the resulting improvement in capacity utilisation since June 2023. The operating result EBITDA of EUR 28 million in the third quarter of 2023 is below the previous year's value of EUR 33.3 million, which in the previous year benefited from license agreements. The cumulative revenue in the first nine months 2023 was strongly increased by 28 % to EUR 833 million. EBITDA was 25 % weaker at 53 million, mainly due to growth-related delays in capacity utilisation in the first half of 2023. Despite the positive development in the core business with IT services, the third quarter made a smaller contribution to earnings than originally expected, especially as additional expenses were booked in the context of two larger fixed-price projects and license revenues remained below expectations. The Executive Board is therefore adjusting the guidance for the full year 2023 as follows: Depending in particular on the license income and the capacity utilisation in the fourth quarter, EBITDA of EUR 70 to 90 million (previously: EUR 100 to 110 million) is now expected, with turnover remaining unchanged at over EUR 1 billion.

The Executive Board continues to assess the prospects for the further business development of adesso as positive. Incoming orders remain at a record level and, despite the generally weaker economic situation, there have been no signs of a slowdown for adesso so far. Customer demand for the services offered by adesso in the context of digitalisation remains high. The Executive Board therefore expects strong growth in the double-digit percentage range for 2024 and a return to the usual EBITDA target margin range.

The assessment is based on the findings to date from the preparation of the financial statements for the third quarter of 2023. Explanations of the key figures used are published on the company's website at www.adesso-group.de/en/apm/.