Serviceware SE: After strong Q4 in FY 2022/2023 with sales revenues growth at the upper end of the forecast and return to the black

Idstein (pta009/26.02.2024/09:00 UTC+1)

• Sales revenues up 10.0 percent to EUR 91.5 million
• Positive EBITDA of EUR +0.2 million after EUR -1.6 million in prior year
• SaaS/Service sales revenues increased disproportionately by 19.2 percent to EUR 57.3 million
• Order backlog grown by 71.0 percent to EUR 55.4 million
• Growth driver Artificial Intelligence: use of AI in Serviceware platform further expanded as planned
• Sales revenue growth of between 5 and 15 percent and further significant improvement in EBITDA targeted in FY 2023/2024

Idstein, 26 February 2024 Serviceware SE ("Serviceware", ISIN DE000A2G8X31) was able to close fiscal 2022/2023 (until 30 November) with a strong 4th quarter and has convincingly achieved the forecasts for sales revenues and earnings for the full year. Despite the weak overall economic environment, Serviceware sales revenues rose by 10.0 percent from EUR 83.2 million to EUR 91.5 million for the full year according to preliminary, unaudited IFRS figures. Sales revenues were thus at the upper end of the forecast range of 5 to 10 percent. In Q4 2022/2023, sales were up 11.2 percent year-on-year at EUR 23.8 million. SaaS/Service sales revenues rose disproportionately by 19.2 percent from EUR 48.1 million to EUR 57.3 million. SaaS/Service sales revenues now account for 62.6 percent of total sales revenues (prior year: 57.8 per cent). Serviceware also expects the SaaS business to grow significantly during the coming quarters. The changeover from one-off licence revenues to monthly recurring revenues will make it much easier for Serviceware to plan its business development.

With an EBITDA of EUR +0.2 million for the full year, Serviceware returned to the black after EUR -1.6 million in prior year. The company's forecast had only envisaged an improvement in EBITDA. At EUR +0.8 million, the EBITDA was significantly higher in the 4th quarter than the prior-year figure of EUR
-1.1 million. The measures introduced during the first half of the year to increase efficiency and productivity contributed to the improvement in earnings for the year as a whole.

The order backlog, which is mainly represented by the residual values of existing SaaS contracts and recognised in the balance sheet under contract liabilities, increased by 71.0 percent from EUR 32.4 million at the end of the previous year to EUR 55.4 million as at 30 November 2023. The operating cash flow amounted to EUR 0.5 million. Cash and cash equivalents were at EUR 28.2 million at the end of November 2023. This includes liquid funds totalling EUR 25.0 million and EUR 3.2 million invested in long-term government bonds and state institution bonds with very good credit standing. For the current fiscal year 2023/2024, Serviceware expects an increase in sales revenues of between 5 and 15 percent as well as a significant improvement in EBITDA. The company is also confident that it will continue to drive sales revenues and earnings growth in subsequent years.

Serviceware has further stepped up the use of Artificial Intelligence (AI) in its product portfolio and business processes. AI is an integral part of Serviceware's DNA and has been a central component of its long-term corporate strategy for years. Artificial intelligence is already used throughout the modules of the Serviceware ESM platform. During the reporting period, ChatGPT was integrated into the ESM platform, among other things. The consistent integration of Artificial Intelligence has enabled Serviceware to further expand its market position as the world's leading provider of Enterprise Service Management. In February 2024, Serviceware celebrated the 5th anniversary of the AI Competence Centre in Darmstadt, where the company, partly together with TU Darmstadt, is pushing ahead with the development of the use of AI in the automation and optimisation of service processes.

Serviceware is consistently pursuing its platform strategy and has further strengthened the ESM platform with releases for all ESM modules. Serviceware is recording a strong demand for all software solutions of the Serviceware platform, whereby the demand for Serviceware Financial and Serviceware Knowledge, the software solutions for IT financial management and knowledge management, is particularly high. Serviceware is succeeding with increasing momentum in realising new projects worldwide and leveraging cross-selling potential with both existing and new customers. During the reporting period, Serviceware impressed one of Europe's largest public transportation associations with its AI expertise. In addition, a leading European telecommunications company and another DAX-listed company, now the 18th to use Serviceware solutions, opted for modules from the ESM platform.

Dirk K. Martin, CEO of Serviceware: "Despite the transition to a SaaS business model, we returned to our profitable growth path during the past fiscal year. We see this as an important step, and we want to sustain our momentum for a positive development. We are continuing to expedite the transition of our business model to a SaaS business model and are steadily increasing the proportion of Artificial Intelligence in our ESM modules. AI is one of the game changers in the automation of service processes. We recognised this development early on and are now benefiting more and more from the course we have already set with AI. The high order backlog, which reflects future growth potential, also shows that our transformation is working. We believe we are ideally positioned for further growth and to support companies worldwide in the digitalisation of their business models with our innovative solutions."

The complete annual financial statements and the 2022/2023 annual report will be available from 22 March 2024 at www.serviceware-se.com in the Investor Relations section.

Webcast on 26 February 2024

Serviceware invites investors and media representatives to a video conference with CFO Harald Popp on 26 February 2024 at 3 p.m., during which the annual figures and the forecast will be explained. Mr Popp will then be available to answer questions.

To participate in the event, please register at the following link:

https://montegaconnect.de/event/mub6mu8nf4wtjyg6qs6q9mxrqtff9dzr

The webcast will be held in German. However, questions can also be sent in English.

About Serviceware

Serviceware is a leading provider of software solutions for the digitalization and automation of service processes (Enterprise Service Management), with which companies can increase their service quality and manage their service costs efficiently.

The Serviceware Platform consists of seamlessly integrated software solutions that can also be used independently of each other. Since 2018, Serviceware has been focusing on the potential of artificial intelligence in service management. Today, AI is the central innovation factor of the Serviceware Platform, which is constantly being further developed in the company's own AI competence center in cooperation with TU Darmstadt.

Serviceware partners with customers from strategic consulting through the definition of the service strategy to the implementation of the Serviceware Platform. Further components of the portfolio are safe and reliable infrastructure solutions as well as managed services.

Serviceware has more than 1,000 customers worldwide from various business sectors, including 18 DAX companies, as well as 5 of the 7 largest German companies. The head office of Serviceware is in Idstein, Germany. Serviceware employs more than 470 people at 14 international locations.

For more information, please visit www.serviceware-se.com.

Media Relations
edicto GmbH
Axel Mühlhaus/Doron Kaufmann
Tel. +49(0) 69/905505-52
Email: investor-relations@serviceware-se.com

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Emitter:	Serviceware SE Serviceware-Kreisel 1 65510 Idstein Germany
Contact Person:	Investor Relations edicto GmbH
Phone:	+49 69 90550552
E-Mail:	serviceware@edicto.de
Website:	www.serviceware-se.com/de
ISIN(s):	DE000A2G8X31 (Share)
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