Q1 2021

INTERIM ANNOUNCEMENT AS OF 31 MARCH 2021

KEY FIGURES

2

Key figures

CANCOM GROUP

in € million

Q1 2021

Q1 2020

Revenue

372.7

345.3*

+ 7.9 %

Gross profit

125.4

119.2

+ 5.2 %

EBITDA

31.0

26.0

+ 19.2 %

EBITDA margin

8.3 %

7.5 %

+ 0.8 pp

EBITA

20.1

16.2

+ 24.4 %

EBIT

16.2

11.8

+ 37.0 %

31.3.2021

31.12.2020

Balance sheet total

1,249.5

1,249.9

- 0.1 %

Equity

630.7

614.7

+ 2.5 %

Equity ratio

50.4 %

49.2 %

+ 1.2 pp

Cash and cash equivalents

299.5

338.4

- 11.5 %

Employees

4,076

3,912

+ 4.2 %

CLOUD SOLUTIONS

in € million

Q1 2021

Q1 2020

Revenue

76.0

73.6*

+ 3.3 %

EBITDA

22.5

18.9

+ 19.0 %

EBITDA margin

29.6 %

25.6 %

+ 4.0 pp

ARR

224.3

189.1

+ 18.6 %

IT SOLUTIONS

in € million

Q1 2021

Q1 2020

Revenue

296.7

271.7*

+ 9.2 %

EBITDA

13.1

14.1

- 7.0 %

EBITDA margin

4.4 %

5.2 %

- 0.8 pp

  • Previous year's figure adjusted due to change in accounting policy for the financial year 2021. Explanations are provided in the section "Results of operations, financial position and net assets" in this quarterly statement.

TABLE OF CONTENTS

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Table of contents

  1. Basic of the group
  2. Economic report
  1. Forecast report
  1. Consolidated balance sheet
  1. Consolidated Statement of total Comprehensive Income
  1. Consolidated cash flow statement
  2. Segment information

INTERIM GROUP MANAGEMENT STATEMENT

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Group Interim Report

for the period 1 January to 31 March 2021

BASICS OF THE GROUP

Cloud Solutions

The CANCOM Group (hereinafter "CANCOM" or "CANCOM Group") is one of the leading providers of IT services and IT infrastructure in Germany . In addition to its activities in its home market of Germany, CANCOM has subsidiaries or branches in the United Kingdom, Austria, Ireland, Belgium, Switzerland, Slovakia and the USA.

The Cloud Solutions group segment includes the (shared) managed services business and those product and service businesses

that can be directly allocated to managed services contracts. In addition, there are all business activities in connection with the Group's own software product - the IT multicloud management software 'AHP Enterprise Cloud'.

Structure of the CANCOM Group

IT Solutions

Theparent company of the CANCOM Group is CANCOM SE, based in Munich, Germany. It performs central financing and management functions for the Group companies, i.e., the investments it holds. In addition to the parent company's central management and financing activities, the operating units are supported in their day-to-day business operations by likewise centralized areas for purchasing, internal IT, warehousing/ logistics, finance, repair/service, vehicle and travel management and human resources ("Central Services"), as well as marketing/ communications, legal and product management. In addition, the operating units have access to a specialized internal sales department ("Competence Center") across the organization.

In addition to these centralized functions, CANCOM's operating units are primarily decentralized and operate in units structured primarily by region. The organization comprises the regional units South, Southwest, Central, East, North, and West, as well as operating units in the United Kingdom, Belgium, and the USA. In addition, there are the E-commerce and Managed Services.

In its financial reporting, the CANCOM Group reports on the development of its operating business by means of two segments in addition to the Group as a whole: Cloud Solutions and IT Solutions.

The Group's IT Solutions segment comprises business relating to comprehensive strategic and technical consulting for projects in the areas of IT infrastructure, IT applications, and systems integration, as well as associated services such as planning and turnkey implementation. The segment also covers activities in the areas of IT procurement, eProcurement services, and IT remarketing.

Other companies

In addition to the two operating Group segments, the CANCOM Group's segment reporting also includes the Other Companies segment. This segment comprises the staff and management functions for central Group management, including the parent company CANCOM SE. Intra-Group investments as well as expenses for company acquisitions or income from company disposals are also included in this segment.

Changes in the basis or structure of the Group in the reporting period

In January 2021, CANCOM SE acquired 100 percent of the shares in Anders & Rodewyk Das Systemhaus für Computertechnologien GmbH, based in Hanover. The date of initial consolidation was

1 January 2021.

INTERIM GROUP MANAGEMENT STATEMENT

Business model and sales markets

CANCOM's product and service portfolio is geared to providing comprehensive advice and support to enterprise customers

in adapting IT infrastructures and business processes to the requirements of digitalization. CANCOM acts as a provider of complete solutions and sees itself as a "Leading Digital Transformation Partner" for its customers.

The range of services extends from strategic consulting for digital business processes to the partial or complete operation of IT systems (Managed Services), system design and integration, IT support, delivery and turnkey implementation of hardware and software, as well as e-procurement and remarketing, and the sale of CANCOM's own 'AHP Enterprise Cloud' software.

This broad-based product and service offering enables the CANCOM Group to generate revenue both on the basis of the company's own skills and services (services business) and from remuneration and commissions for the sale of third-party IT products (sale of goods). The business model is supplemented by the sale of the in-house software 'AHP Enterprise Cloud'.

CANCOM thus combines the corporate activities of a managed services provider, a system house (value-added reseller), and a software manufacturer, and can thus generate additional synergy effects between these complementary business areas.

Management is pursuing a medium-term course of strategic transformation for the CANCOM Group. The provision of IT services, especially shared managed services, is to account for an increasing share of business activities in the future. In addition, since 2018 the company has been investing more in the further development of its in-house software 'AHP Enterprise Cloud'.

A key external factor influencing CANCOM's business development is the development of the IT market in the largest sales markets of Germany, the United Kingdom, Austria and Belgium. For the IT market as a whole - and therefore also for CANCOM - the general trend towards digitization, the increasing importance of IT processes in business and government, and the permanent further development of devices, technologies, and applications is a key driver. In addition, data protection regulations, the general threat situation in the area of cyber security, and the quality certifications required by customers, as well as environmental and social standards, are important

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external factors that CANCOM cannot influence and that can have a positive or negative effect on business development. As a provider of IT services and products, however, the CANCOM Group's business model is not subject to any special industry- specific legal provisions, licensing requirements, or official supervision, i.e., external regulatory or politically influenced factors that go beyond the legal framework generally applicable to all companies.

The CANCOM Group's customer base primarily comprises commercial end users, ranging from small and medium-sized enterprises to large corporations and groups as well as public institutions. Geographically, the CANCOM Group is primarily active in Germany, but also in Austria, the United Kingdom, Ireland, Belgium, Switzerland and the USA.

ECONOMIC REPORT

Development of the overall economy and the IT market

With a revenue share of around 75 percent, Germany is by far the most important sales market for the CANCOM Group. Other important sales markets in terms of revenue volume are the United Kingdom, Austria, Belgium, Switzerland and the USA. In addition to the general economic development in these country markets, the overall market for information and communications technology - especially in Germany - also forms an essential framework and basis of comparison for assessing CANCOM's economic development.

Germany

In CANCOM's home market, economic output, measured in terms of gross domestic product, fell by 1.7 percent in the first quarter of 2021 compared with the previous quarter, according to the German Federal Statistical Office. The stricter Corona protection measures that have been in effect since December of the previous year had a particularly negative impact on the service sector and private consumption. The restrictions had a less significant impact on industry, manufacturing and trade. In its December 2020 forecast, the German Bundesbank nevertheless expects GDP to grow by 3.0 percent in the current year.

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Cancom SE published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 06:09:03 UTC.