Systems Solutions
Order entry
millions of € |
|
|
|
|
|
|---|---|---|---|---|---|
|
H1 2021 |
Q1 2021 |
FY 2020 |
H1 2020 |
Change |
Order entry |
2,019 |
891 |
4,564 |
1,788 |
12.9 |
Development of business
In the first half of 2021, the focus of our systems solutions business continued to be on growth and future viability as well as the acceleration of our transformation program, while the effects of the coronavirus pandemic had a negative impact on our business.
Under the transformation program, we continued to drive forward the alignment of our organization, workflows and capacities, and the fine-tuning of the strategy for our portfolio. In addition to stand-alone portfolio units, which are responsible for both our growth areas (e.g., public cloud and security) and our traditional IT business, we have defined selected industries (automotive, healthcare, public sector, and transport), for which we will increase our offering of vertical solutions based on our expertise. Consistent with our efforts to implement the Group’s strategy pillar “Lead in business productivity,” we transferred our IoT (Internet of Things) portfolio unit to the Germany operating segment effective January 1, 2021.
Order entry in our Systems Solutions operating segment was up by 12.9 % year-on-year in the first half of 2021. This trend reflects the recovery from the effects of the coronavirus pandemic on the economic situation of our business customers and the restraint in awarding contracts in the prior year. There was a clear positive trend in our growth areas in particular.
Development of operations
millions of € |
|
|
|
|
|
|
|
|
|
|---|---|---|---|---|---|---|---|---|---|
|
|
Q1 2021 |
Q2 2021 |
Q2 2020 |
Change % |
H1 2021 |
H1 2020 |
Change % |
FY |
Total revenue |
|
1,015 |
1,006 |
1,065 |
(5.5) |
2,021 |
2,127 |
(5.0) |
4,159 |
Of which: external revenue |
|
798 |
799 |
829 |
(3.6) |
1,596 |
1,669 |
(4.4) |
3,237 |
Profit (loss) from operations (EBIT) |
|
(27) |
(68) |
(60) |
(13.3) |
(95) |
(110) |
13.6 |
(534) |
Special factors affecting EBIT |
|
(56) |
(104) |
(59) |
(76.3) |
(160) |
(97) |
(64.9) |
(582) |
EBIT (adjusted for special factors) |
|
29 |
36 |
(1) |
n.a. |
65 |
(13) |
n.a. |
48 |
EBIT margin (adjusted for special factors) |
% |
2.9 |
3.6 |
(0.1) |
|
3.2 |
(0.6) |
|
1.2 |
Depreciation, amortization and impairment losses |
|
(80) |
(74) |
(103) |
28.2 |
(155) |
(205) |
24.4 |
(720) |
EBITDA |
|
53 |
7 |
43 |
(83.7) |
60 |
95 |
(36.8) |
185 |
Special factors affecting EBITDA |
|
(36) |
(91) |
(59) |
(54.2) |
(127) |
(97) |
(30.9) |
(209) |
EBITDA (adjusted for special factors) |
|
89 |
98 |
102 |
(3.9) |
187 |
192 |
(2.6) |
394 |
EBITDA AL |
|
26 |
(19) |
12 |
n.a. |
7 |
33 |
(78.8) |
70 |
Special factors affecting EBITDA AL |
|
(36) |
(91) |
(59) |
(54.2) |
(127) |
(97) |
(30.9) |
(209) |
EBITDA AL (adjusted for special factors) |
|
62 |
72 |
71 |
1.4 |
134 |
130 |
3.1 |
279 |
EBITDA AL margin (adjusted for special factors) |
% |
6.1 |
7.2 |
6.7 |
|
6.6 |
6.1 |
|
6.7 |
Cash capex |
|
(49) |
(50) |
(55) |
9.1 |
(99) |
(80) |
(23.8) |
(235) |
Total revenue
Total revenue in our Systems Solutions operating segment in the first half of 2021 amounted to EUR 2.0 billion, down 5.0 % on the prior-year level. This decrease was mainly driven by the expected decline in traditional IT infrastructure business, due in part to targeted business decisions such as the reduction in end-user services. By contrast, our growth areas are growing significantly, especially public cloud (+22.5 %), road charging (+17.6 %) and digital solutions (+13.3 %).
Adjusted EBITDA AL, EBITDA AL
In the first half of 2021, adjusted EBITDA AL at our Systems Solutions operating segment increased by 3.1 % year-on-year to EUR 134 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. EBITDA AL decreased by EUR 26 million compared with the prior-year period to EUR 7 million. Special factors were up EUR 30 million on the prior year at EUR ‑127 million, mainly due to a loss on deconsolidation in connection with the sale of a business operation.
Adjusted EBIT, EBIT
Adjusted EBIT at our Systems Solutions operating segment increased by EUR 78 million year-on-year in the first half of 2021 to EUR 65 million, mainly on the back of lower depreciation and amortization as a result of a non-cash impairment loss on non-current assets in the third quarter of the prior year and the related reduction in the depreciation and amortization base. EBIT increased by EUR 15 million compared with the prior-year period to EUR ‑95 million. Special factors were up EUR 63 million on the prior-year period, at EUR ‑160 million, mainly on account of a non-cash impairment loss on non-current assets recognized in the first half of 2021, which was also related to the ad hoc impairment testing carried out in the Systems Solutions cash-generating unit in the third quarter of the prior year, and the aforementioned loss on deconsolidation.
Cash capex
Cash capex in the Systems Solutions operating segment stood at EUR 99 million in the first half of 2021, compared with EUR 80 million in the prior-year period. This was primarily due to front-loaded investments compared with the prior year. Going forwards, we will continue to focus our investments on developing our growth business.