Systems Solutions
Order entry
millions of € |
|
|
|
|
|
|---|---|---|---|---|---|
|
Q1-Q3 2022 |
H1 2022 |
FY 2021 |
Q1-Q3 2021 |
Change |
Order entry |
2,769 |
1,902 |
3,876 |
2,601 |
6.5 |
Development of business
The first nine 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. 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 6.5 % year-on-year in the first nine months of 2022. Our focus industries, healthcare and the public sector, and the Germany region performed particularly well.
Development of operations
millions of € |
|
|
|
|
|
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Q1-Q3 2022 |
Q1-Q3 2021 |
Change |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q3 2021 |
Change |
FY 2021 |
||
Total revenue |
|
2,796 |
2,803 |
(0.2) |
927 |
942 |
927 |
910 |
1.9 |
3,759 |
||
Of which: external revenue |
|
2,284 |
2,262 |
1.0 |
764 |
764 |
757 |
734 |
3.1 |
3,032 |
||
Service revenuea |
|
2,736 |
2,629 |
4.1 |
904 |
923 |
909 |
875 |
3.9 |
3,632 |
||
Profit (loss) from operations (EBIT) |
|
(18) |
(135) |
86.7 |
(5) |
7 |
(20) |
(39) |
48.7 |
(247) |
||
Special factors affecting EBIT |
|
(156) |
(233) |
33.0 |
(43) |
(42) |
(71) |
(77) |
7.8 |
(384) |
||
EBIT (adjusted for special factors) |
|
138 |
98 |
40.8 |
39 |
48 |
51 |
39 |
30.8 |
138 |
||
EBIT margin (adjusted for special factors) |
% |
4.9 |
3.5 |
|
4.2 |
5.1 |
5.5 |
4.3 |
|
3.7 |
||
Depreciation, amortization and impairment losses |
|
(220) |
(254) |
13.4 |
(70) |
(61) |
(90) |
(101) |
10.9 |
(421) |
||
EBITDA |
|
202 |
119 |
69.7 |
65 |
67 |
70 |
62 |
12.9 |
174 |
||
Special factors affecting EBITDA |
|
(106) |
(163) |
35.0 |
(29) |
(37) |
(40) |
(39) |
(2.6) |
(206) |
||
EBITDA (adjusted for special factors) |
|
309 |
282 |
9.6 |
94 |
105 |
110 |
101 |
8.9 |
380 |
||
EBITDA AL |
|
123 |
39 |
n.a. |
39 |
42 |
43 |
35 |
22.9 |
65 |
||
Special factors affecting EBITDA AL |
|
(106) |
(163) |
35.0 |
(30) |
(37) |
(40) |
(39) |
(2.6) |
(206) |
||
EBITDA AL |
|
230 |
202 |
13.9 |
68 |
79 |
83 |
74 |
12.2 |
271 |
||
EBITDA AL margin |
% |
8.2 |
7.2 |
|
7.3 |
8.4 |
9.0 |
8.1 |
|
7.2 |
||
Cash capex |
|
(161) |
(145) |
(11.0) |
(43) |
(53) |
(65) |
(46) |
(41.3) |
(235) |
||
|
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Total revenue, service revenue
Total revenue in our Systems Solutions operating segment in the first nine months of 2022 amounted to EUR 2.8 billion, which was more or less on the prior-year level, down just 0.2 %. The development of total revenue was mainly attributable to the expected decline in traditional IT infrastructure business, due in part to deliberate business decisions such as the reduction in end-user services, offset by positive developments, especially in the portfolio units Digital Solutions (up 8.7 %), Advisory (up 11.3 %) and Road Charging (up 12.6 %). In organic terms, revenue was down 0.4 % year-on-year. External revenue increased by 1.0 %, mainly driven by the Digital Solutions portfolio unit. Service revenue increased by 4.1 % due to an extension of the definition.
Adjusted EBITDA AL, EBITDA AL
In the first nine months of 2022, adjusted EBITDA AL at our Systems Solutions operating segment increased by 13.9 % year-on-year to EUR 230 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 10.2 % year-on-year. EBITDA AL increased by EUR 84 million compared with the prior year to EUR 123 million. Special factors were down EUR 57 million on the prior year at EUR ‑106 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 40 million year-on-year in the first nine months of 2022, coming in at EUR 138 million, due to the reasons described under adjusted EBITDA AL and as a result of declines in depreciation, amortization and impairment losses. EBIT increased by EUR 117 million compared with the prior year to EUR ‑18 million. The expense arising from special factors decreased by EUR 77 million year-on-year, to EUR ‑156 million, due to the reasons described under EBITDA AL.
Cash capex
Cash capex in the Systems Solutions operating segment stood at EUR 161 million in the first nine months of 2022, up EUR 16 million against the prior-year period. This increase was driven by the backlog of investments from the prior year owing to hardware supply shortages in 2021 and by investments to expand our sovereign cloud landscape.