EQS-Adhoc: Allgeier SE: Business performance in the first half of 2024 subject to special influence from OZG Amendment Act; noticeable improvement expected for the second half of the year

Munich, 06 August 2024 – The sales and earnings performance of Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) in the first half of 2024 was influenced by a politically induced special situation in the area of public clients. The amendment to the Online Access Act (OZG), the central law for the digitalization of public administrations, was unexpectedly blocked in the Federal Council (Bundesrat) after being passed by the German Parliament (Bundestag) in February. As a result, a large number of digitalization projects at federal and state level that had already been budgeted for and taken into account in personnel planning were delayed in the first half of the year and could not start as planned. As a result, our Group companies, in particular mgm technology partners and publicplan, missed out on revenue of around EUR 10 million in the first half of 2024, particularly in the second quarter, in relation to projects that had already been won. This resulted in temporarily low-capacity utilization in the affected business units. This had a negative impact on EBITDA in the first half of the year in the range of EUR 4-5 million.

Group sales in the first half of 2024 amounted to EUR 225 million instead of the originally planned figure of more than EUR 240 million. At EUR 23 million, adjusted EBITDA was around EUR 2 million below the planned level. With an additional adjustment for the special situation due to the delayed entry into force of the OZG Amendment Act, adjusted EBITDA in the first half of the year would have been more than EUR 27 million and thus above the planned result. In the first half of 2023, adjusted EBITDA had stood at EUR 24 million.

In the course of June 2024, an agreement was reached between the federal and state governments and the OZG Amendment Act came into force on 24 July 2024. The situation will therefore gradually ease over the course of the third quarter and enable higher revenue in the already budgeted projects for the second half of the year. The negative impact on sales from the special situation will once again be in the region of EUR 10 million in the second half of the year. The corresponding impact on earnings will only amount to around EUR 2 million in the second half of the year due to the increase in capacity utilization. In total, business from the projects won in 2024 will therefore be postponed through to 2025. This improves the prospects for 2025 and the following years, in which an immense backlog in the area of digitalization of public administrations must be dealt with. For this reason, we did not significantly reduce our capacities in the first half of 2024 despite the temporarily low-capacity utilization and will continue to expand them significantly from now on. We expect demand to grow strongly in areas such as the development of digitalization solutions based on open-source software.

We expect to see a noticeable improvement in demand in the second half of 2024, particularly in the public sector. Sales in the second half of the year are expected to be between EUR 250 million and EUR 260 million. Adjusted EBITDA for the second half of the year is expected to be in the region of EUR 40 million due to the significant improvement in capacity utilization. This includes a charge of around EUR 2 million from the special situation of the delayed start of the OZG projects. Without this special charge, sales would also be around EUR 10 million higher in the second half of the year and adjusted EBITDA would be expected to exceed EUR 41 million. In the second half of 2023, adjusted EBITDA had amounted to EUR 37 million.

For 2024 as a whole, this translates into Group sales of between EUR 475 million and EUR 480 million and an adjusted EBITDA in the region of EUR 63 million, which corresponds to an operating profit margin of close to 13 percent. Excluding the special burden from the delayed OZG Amendment Act, the expected adjusted EBITDA would be over EUR 69 million.

A positive amount of around EUR 5 million is expected for the extraordinary result for 2024 as a whole. The expected amount includes extraordinary expenses for structural measures and cost reductions as well as a positive earnings contribution from the new agreement on an earn-out arrangement for the evora subsidiary. The departure of two of the four founders as minority shareholders and the takeover of the minority shares by the two founders managing the company led to the conclusion of an adjusted shareholder agreement and an adjusted earn-out arrangement in the third quarter of 2024. As a result, the Group's reported EBITDA for the 2024 financial year is expected to be in the region of EUR 68 million (previous year: EUR 58 million).

The business figures for the first half of 2024 will be presented in detail in the half- yearly financial report for the Allgeier Group, which will be published on 15 August 2024.

Contact:

Allgeier SE
Corporate Communications & Investor Relations
Dr. Christopher Große
Einsteinstrasse 172
81677 Munich
Tel.: +49 (0)89/998421-0
Fax: +49 (0)89/998421-11
E-mail: ir@allgeier.com
Web: www.allgeier.com

Allgeier SE is a technology company for digital transformation. Allgeier Group companies guide their customers in Germany and abroad through the challenges of digital change with comprehensive software and IT services and support the digitalization and transformation of business-critical processes. With more than 2,000 customers, the broad and stable customer base consists of global corporations, high-performance medium-sized companies and public sector clients at all federal levels. The service portfolio ranges from the company's proprietary software products and high-end software development to consulting, conception and long-term support for software applications in the cloud or other environments. In the two Group segments Enterprise IT and mgm technology partners, more than 3,500 employees work at a total of 46 locations worldwide in the DACH region, France, Spain, Portugal, Poland and Czechia as well as in India, Vietnam and the USA. In the 2023 financial year, Allgeier generated revenue of EUR 488 million from continuing operations. According to the Lünendonk® List 2024, Allgeier is one of the leading IT service companies in Germany. Allgeier SE is listed on the Regulated Market of the Frankfurt Stock Exchange in the General Standard (WKN A2GS63, ISIN DE000A2GS633). Further information at: www.allgeier.com

1961899  06-Aug-2024 CET/CEST