Systems Solutions
Order entry
millions of € |
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|
|
H1 2023 |
Q1 2023 |
FY 2022 |
H1 2022 |
Change |
||
Order entrya |
1,500 |
754 |
3,952 |
1,902 |
(21.1) |
||
|
|||||||
Development of business
The first half of 2023 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, 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. We are also increasingly expanding our portfolio with AI (artificial intelligence)-based solutions and data room offerings.
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 down by 21.1 % year-on-year in the first half of 2023. This development is largely attributable to the high-volume deals concluded in the prior year, the like of which are not expected in this reporting year until the second half of the year. Furthermore, the prior-year figure includes order entry for Multimedia Solutions (MMS), which was reassigned to the Germany segment as of January 1, 2023.
Development of operationsa
millions of € |
|
|
|
|
|
|
|
|
|
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
H1 2023 |
H1 2022 |
Change |
Q1 2023 |
Q2 2023 |
Q2 2022 |
Change |
FY 2022 |
||||||
Revenueb |
|
1,905 |
1,869 |
1.9 |
946 |
959 |
942 |
1.8 |
3,811 |
||||||
Of which: external revenue |
|
1,588 |
1,527 |
4.0 |
792 |
796 |
764 |
4.2 |
3,106 |
||||||
Service revenueb, c |
|
1,855 |
1,844 |
0.6 |
921 |
934 |
930 |
0.4 |
3,751 |
||||||
EBITDA |
|
155 |
133 |
16.5 |
72 |
82 |
67 |
22.4 |
229 |
||||||
Special factors affecting EBITDA |
|
(51) |
(66) |
22.7 |
(26) |
(25) |
(37) |
32.4 |
(159) |
||||||
EBITDA (adjusted for special factors) |
|
205 |
199 |
3.0 |
99 |
107 |
105 |
1.9 |
388 |
||||||
EBITDA AL |
|
108 |
80 |
35.0 |
49 |
59 |
42 |
40.5 |
125 |
||||||
Special factors affecting EBITDA AL |
|
(51) |
(66) |
22.7 |
(26) |
(25) |
(37) |
32.4 |
(159) |
||||||
EBITDA AL |
|
159 |
147 |
8.2 |
75 |
84 |
79 |
6.3 |
284 |
||||||
EBITDA AL margin |
% |
8.3 |
7.9 |
|
7.9 |
8.8 |
8.4 |
|
7.5 |
||||||
Depreciation, amortization and impairment losses |
|
(118) |
(131) |
9.9 |
(61) |
(57) |
(61) |
6.6 |
(340) |
||||||
Profit (loss) from operations (EBIT) |
|
36 |
2 |
n.a. |
11 |
25 |
7 |
n.a. |
(110) |
||||||
Special factors affecting EBIT |
|
(61) |
(85) |
28.2 |
(35) |
(27) |
(42) |
35.7 |
(270) |
||||||
EBIT (adjusted for special factors) |
|
98 |
87 |
12.6 |
46 |
52 |
48 |
8.3 |
160 |
||||||
EBIT margin (adjusted for special factors) |
% |
5.1 |
4.7 |
|
4.9 |
5.4 |
5.1 |
|
4.2 |
||||||
Cash capex |
|
(120) |
(96) |
(25.0) |
(60) |
(59) |
(53) |
(11.3) |
(221) |
||||||
Cash capex |
|
(120) |
(96) |
(25.0) |
(60) |
(59) |
(53) |
(11.3) |
(221) |
||||||
|
|||||||||||||||
Revenue, service revenue
Revenue in our Systems Solutions operating segment developed more strongly than expected, increasing by 1.9 % year-on-year in the first half of 2023 to EUR 1.9 billion. This positive revenue trend is driven by growth in the Digital (up 10.1 %), Road Charging (up 41.1 %) and Advisory (up 9.8 %) portfolio areas, and by a stable performance in the Cloud portfolio area, which includes our declining traditional IT infrastructure business. External revenue increased by 4.0 %, mainly driven by the Digital and Road Charging portfolio areas. Service revenue also developed positively, increasing by 0.6 %. In organic terms, revenue increased by 4.6 % year-on-year and service revenue by 3.3 %.
Adjusted EBITDA AL, EBITDA AL
In the first half of 2023, adjusted EBITDA AL at our Systems Solutions operating segment increased by 8.2 % year-on-year to EUR 159 million, which was in line with our expectations. Efficiency effects from our transformation program and effects from increased revenue in the Digital and Road Charging portfolio areas exceeded the decline in earnings in the Cloud portfolio area, which includes our traditional IT infrastructure business. In organic terms, adjusted EBITDA AL grew by 3.2 % year-on-year. EBITDA AL increased by EUR 28 million compared with the prior year to EUR 108 million. The expense arising from special factors decreased by EUR 15 million year-on-year, to EUR 51 million, as a result of lower restructuring costs.
Profit/loss from operations (EBIT), adjusted EBIT
Adjusted EBIT in our Systems Solutions operating segment grew by EUR 11 million year-on-year in the first half of 2023, coming in at EUR 98 million, due to the reasons described under adjusted EBITDA AL. EBIT increased by EUR 34 million year-on-year to EUR 36 million. The expense arising from special factors decreased by EUR 24 million year-on-year, to EUR 61 million, as a result of lower restructuring costs and lower impairment losses.
Cash capex (before spectrum investment), cash capex
Cash capex in the Systems Solutions operating segment stood at EUR 120 million in the first half of 2023, up EUR 24 million year-on-year, primarily due to increased demand for on-board units in the Road Charging portfolio area and higher investments in the Digital portfolio area.