Systems Solutions
Order entry
millions of € |
|
|
|
|
|---|---|---|---|---|
|
Q1 2022 |
FY 2021 |
Q1 2021 |
Change |
Order entry |
1,097 |
4,174 |
891 |
23.1 |
Development of business
The first three months of 2022 continued to be dominated by the focusing of our systems solutions business on growth and future viability and the continuation of our transformation program. In keeping with our refined strategy communicated at the Capital Markets Day in May 2021, we have divided our business into four portfolio areas in line with market needs: Advisory, Cloud Services, Digital, and Security.
We have 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.
Order entry in our Systems Solutions operating segment was up by 23.1 % year-on-year in the first three months of 2022, mainly due to an increase in Cloud Services, which includes growth in both the public cloud business and in traditional IT business. The Digital portfolio area also recorded further growth.
Development of operations
millions of € |
|
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|---|
|
|
Q1 2022 |
Q1 2021 |
Change |
Change % |
FY 2021 |
||
Total revenue |
|
996 |
1,015 |
(19) |
(1.9) |
4,019 |
||
Of which: external revenue |
|
802 |
798 |
4 |
0.5 |
3,171 |
||
Service revenuea |
|
973 |
920 |
53 |
5.8 |
3,893 |
||
Profit (loss) from operations (EBIT) |
|
(2) |
(27) |
25 |
92.6 |
(242) |
||
Special factors affecting EBIT |
|
(45) |
(56) |
11 |
19.6 |
(393) |
||
EBIT (adjusted for special factors) |
|
43 |
29 |
14 |
48.3 |
151 |
||
EBIT margin (adjusted for special factors) |
% |
4.3 |
2.9 |
|
|
3.8 |
||
Depreciation, amortization and impairment losses |
|
(71) |
(80) |
9 |
11.3 |
(425) |
||
EBITDA |
|
70 |
53 |
17 |
32.1 |
183 |
||
Special factors affecting EBITDA |
|
(30) |
(36) |
6 |
16.7 |
(213) |
||
EBITDA (adjusted for special factors) |
|
100 |
89 |
11 |
12.4 |
396 |
||
EBITDA AL |
|
43 |
26 |
17 |
65.4 |
73 |
||
Special factors affecting EBITDA AL |
|
(31) |
(36) |
5 |
13.9 |
(213) |
||
EBITDA AL (adjusted for special factors) |
|
73 |
62 |
11 |
17.7 |
286 |
||
EBITDA AL margin (adjusted for special factors) |
% |
7.3 |
6.1 |
|
|
7.1 |
||
Cash capex |
|
(43) |
(49) |
6 |
12.2 |
(237) |
||
|
||||||||
Total revenue, service revenue
Total revenue in our Systems Solutions operating segment in the first three months of 2022 amounted to EUR 1.0 billion, down 1.9 % on the prior-year level. External revenue was up 0.5 %. The decrease in total revenue was mainly driven by the expected decline in traditional IT infrastructure business, due in part to deliberate business decisions such as the reduction in end-user services. The positive trends, especially in the Digital Solutions portfolio unit (up 8.7 %), did not fully offset this decrease. In organic terms, revenue was down 0.8 % year-on-year. Service revenues increased by 5.8 % due to the extension of the definition.
Adjusted EBITDA AL, EBITDA AL
In the first three months of 2022, adjusted EBITDA AL at our Systems Solutions operating segment increased by 17.7 % year-on-year to EUR 73 million. Efficiency effects from our transformation program and effects from increased revenue in our growth areas exceeded the decline in earnings in the traditional IT infrastructure business. In organic terms, adjusted EBITDA AL grew by 18.1 % year-on-year. EBITDA AL increased by EUR 17 million compared with the prior year to EUR 43 million. Special factors were down EUR 5 million on the prior year, at EUR ‑31 million, mainly due to lower restructuring costs.
Adjusted EBIT, EBIT
Adjusted EBIT in our Systems Solutions operating segment in the first three months of 2022 improved by EUR 14 million year-on-year, coming in at EUR 43 million, mainly as a result of declines in depreciation and amortization. EBIT increased by EUR 25 million compared with the prior year to EUR ‑2 million. The expense arising from special factors decreased by EUR 11 million year-on-year, to EUR ‑45 million, mainly due to the reason described under EBITDA AL.
Cash capex
Cash capex in the Systems Solutions operating segment stood at EUR 43 million in the first three months of 2022, down EUR 6 million year-on-year, primarily due to higher lagging payments in the prior year. We will continue to focus our investments on developing our growth business.