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Systems Solutions

Order entry

millions of €

 

 

 

 

 

 

H1 2022

Q1 2022

FY 2021

H1 2021

Change
H1 2022/
H1 2021 
%

Order entry

2,027

1,097

4,174

2,019

0.4

Development of business

The first half 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. 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.

Order entry in our Systems Solutions operating segment was up by 0.4 % year-on-year in the first half of 2022. This includes an increase of 92.4 % in our public cloud business. This growth offset a decline in traditional IT infrastructure business in particular.

Development of operations

millions of €

 

 

 

 

 

 

 

 

 

 

 

H1 2022

H1 2021

Change
%

Q1 2022

Q2 2022

Q2 2021

Change
%

FY 2021

Total revenue

 

2,001

2,021

(1.0)

996

1,005

1,006

(0.1)

4,019

Of which: external revenue

 

1,597

1,596

0.1

802

795

799

(0.5)

3,171

Service revenuea

 

1,959

1,882

4.1

973

986

962

2.5

3,893

Profit (loss) from operations (EBIT)

 

6

(95)

n.a.

(2)

7

(68)

n.a.

(242)

Special factors affecting EBIT

 

(88)

(160)

45.0

(45)

(43)

(104)

58.7

(393)

EBIT (adjusted for special factors)

 

94

65

44.6

43

50

36

38.9

151

EBIT margin (adjusted for special factors)

%

4.7

3.2

 

4.3

5.0

3.6

 

3.8

Depreciation, amortization and impairment losses

 

(132)

(155)

14.8

(71)

(61)

(74)

17.6

(425)

EBITDA

 

138

60

n.a.

70

68

7

n.a.

183

Special factors affecting EBITDA

 

(69)

(127)

45.7

(30)

(39)

(91)

57.1

(213)

EBITDA (adjusted for special factors)

 

207

187

10.7

100

107

98

9.2

396

EBITDA AL

 

86

7

n.a.

43

43

(19)

n.a.

73

Special factors affecting EBITDA AL

 

(69)

(127)

45.7

(31)

(38)

(91)

58.2

(213)

EBITDA AL (adjusted for special factors)

 

155

134

15.7

73

82

72

13.9

286

EBITDA AL margin (adjusted for special factors)

%

7.7

6.6

 

7.3

8.2

7.2

 

7.1

Cash capex

 

(97)

(99)

2.0

(43)

(54)

(50)

(8.0)

(237)

a

As of January 1, 2022, we extended our definition of service revenue in the Group, which increased this figure in the reporting period. The prior-year figures have not been adjusted retrospectively.

Total revenue, service revenue

Total revenue in our Systems Solutions operating segment in the first half of 2022 amounted to EUR 2.0 billion, down 1.0 % on the prior-year level. External revenue was up 0.1 %. 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 10.3 %), did not fully offset this decrease. In organic terms, revenue was down 0.6 % year-on-year. Service revenues increased by 4.1 % due to the extension of the definition.

Adjusted EBITDA AL, EBITDA AL

In the first half of 2022, adjusted EBITDA AL at our Systems Solutions operating segment increased by 15.7 % year-on-year to EUR 155 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 15.7 % year-on-year. EBITDA AL increased by EUR 79 million compared with the prior year to EUR 86 million. Special factors were down EUR 58 million on the prior year at EUR ‑69 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.

Adjusted EBIT, EBIT

Adjusted EBIT in our Systems Solutions operating segment improved by EUR 29 million year-on-year in the first half of 2022, coming in at EUR 94 million, due to the reasons described under EBITDA AL and as a result of declines in depreciation, amortization and impairment losses. EBIT increased by EUR 101 million year-on-year to EUR 6 million. The expense arising from special factors decreased by EUR 72 million year-on-year, to EUR ‑88 million, also due to the reasons described under EBITDA AL.

Cash capex

Cash capex in our Systems Solutions operating segment in the first half of 2022 amounted to EUR 97 million, on a par with the prior-year level. We will continue to focus our investments on developing our growth business.

AL – After Leases
Since the start of the 2019 financial year, we have taken the effects of the first-time application of IFRS 16 “Leases” into account when determining our financial performance indicators. “EBITDA after leases” (EBITDA AL) is calculated by adjusting EBITDA for depreciation of the right-of-use assets and for interest expenses on recognized lease liabilities. When determining “free cash flow after leases” (free cash flow AL), free cash flow is adjusted for the repayment of lease liabilities.
Glossary