Systems Solutions
Order entry
millions of € |
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|
|
2022 |
2021 |
Change |
Change |
2020a |
||
Order entry |
3,952 |
3,876 |
76 |
2.0 |
4,564 |
||
|
|||||||
Development of business
The 2022 financial year continued to be dominated by the focusing of our systems solutions business on growth and future viability and the continuation of our transformation program. As communicated at the Capital Markets Day in May 2021, we have established four portfolio areas in line with market needs: Advisory, Cloud Services, Digital, and Security.
We have also defined selected industries (automotive, healthcare, public sector, and public transport), for which we have increased our offer of vertical solutions based on our expertise. In addition, we have agreed partnerships with leading cloud service providers (e.g., Amazon, Google, and Microsoft), so as to be able to offer our customers an even broader and more flexible range of cloud solutions.
By aligning ourselves in this way, our strategic goal is to become the leading IT service provider in the DACH region (Germany, Austria, Switzerland) and in other selected countries.
Order entry in our Systems Solutions operating segment was up by 2.0 % year-on-year in the 2022 financial year. This positive trend was in line with our expectations. Our focus industries, the public sector and healthcare, and the Germany region performed particularly well.
Development of operations
millions of € |
|
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|---|
|
|
2022 |
2021 |
Change |
Change |
2020 |
||
Net revenue |
|
3,811 |
3,759 |
52 |
1.4 |
3,911 |
||
Of which: external revenue |
|
3,106 |
3,032 |
74 |
2.4 |
3,099 |
||
Service revenuea |
|
3,725 |
3,632 |
93 |
2.6 |
3,660 |
||
EBITDA |
|
229 |
174 |
55 |
31.6 |
184 |
||
Special factors affecting EBITDA |
|
(159) |
(206) |
47 |
22.8 |
(201) |
||
EBITDA (adjusted for special factors) |
|
388 |
380 |
8 |
2.1 |
384 |
||
EBITDA AL |
|
125 |
65 |
60 |
92.3 |
68 |
||
Special factors affecting EBITDA AL |
|
(159) |
(206) |
47 |
22.8 |
(201) |
||
EBITDA AL (adjusted for special factors) |
|
284 |
271 |
13 |
4.8 |
269 |
||
EBITDA AL margin (adjusted for special factors) |
% |
7.5 |
7.2 |
|
|
6.9 |
||
Depreciation, amortization and impairment losses |
|
(340) |
(421) |
81 |
19.2 |
(708) |
||
Profit (loss) from operations (EBIT) |
|
(110) |
(247) |
137 |
55.5 |
(524) |
||
Special factors affecting EBIT |
|
(270) |
(384) |
114 |
29.7 |
(567) |
||
EBIT (adjusted for special factors) |
|
160 |
138 |
22 |
15.9 |
43 |
||
EBIT margin (adjusted for special factors) |
% |
4.2 |
3.7 |
|
|
1.1 |
||
Cash capex |
|
(221) |
(235) |
14 |
6.0 |
(231) |
||
Cash capex (before spectrum investment) |
|
(221) |
(235) |
14 |
6.0 |
(231) |
||
|
||||||||
Net revenue, service revenue
Revenue in our Systems Solutions operating segment in the 2022 financial year amounted to EUR 3.8 billion, up 1.4 % year-on-year, which slightly exceeded our expectations. This positive development was mainly driven by growth in the Digital Solutions (up 8.9 %), Road Charging (up 23.6 %), and Advisory (up 11.3 %) portfolio units, which more than offset the expected decline in traditional IT infrastructure business, due in part to deliberate business decisions such as the reduction in end-user services. In organic terms, revenue increased by 1.0 % year-on-year. External revenue increased by 2.4 %, mainly driven by the Digital Solutions portfolio unit. Service revenue also increased by 2.6 % due to the extension of the definition.
Adjusted EBITDA AL, EBITDA AL
In the 2022 financial year, adjusted EBITDA AL at our Systems Solutions operating segment increased by 4.8 % year-on-year to EUR 284 million, which was in line with our expectations. Efficiency effects from our transformation program and effects from increased revenue in our Digital Solutions and Road Charging portfolio units exceeded the decline in earnings in the traditional IT infrastructure business. In organic terms, adjusted EBITDA AL grew by 0.9 % year-on-year. EBITDA AL increased by EUR 60 million compared with the prior year to EUR 125 million. The expense arising from special factors was down EUR 47 million on the prior year at EUR ‑159 million, mainly due to lower restructuring costs and to a loss on deconsolidation in connection with the sale of a business operation in the prior year.
Profit/loss from operations (EBIT), adjusted EBIT
Adjusted EBIT in our Systems Solutions operating segment improved by EUR 22 million year-on-year in the 2022 financial year, coming in at EUR 160 million, due to the reasons described under adjusted EBITDA AL and as a result of declines in depreciation and amortization. EBIT increased by EUR 137 million compared with the prior year to EUR ‑110 million. The expense arising from special factors decreased by EUR 114 million year-on-year, to EUR ‑270 million, due in part to the reasons described under EBITDA AL. In addition, in the reporting year, non-cash impairment losses on non-current assets totaling EUR 111 million were recorded as special factors. These related to follow-up investments in connection with assets previously impaired in the 2020 and 2021 financial years. Furthermore, despite the business outlook remaining positive, the substantial increase in the cost of capital in the reporting year prompted further impairment losses to be recognized on non-current assets at the end of 2022. Impairment losses totaling EUR 178 million were recorded as special factors in the prior year.
Cash capex (before spectrum investment), cash capex
Cash capex in the Systems Solutions operating segment stood at EUR 221 million in 2022, slightly down on the prior-year level and hence still in line with our expectations.