All for One Steeb Aktie

Good morning, everybody. Very warm welcome to our call today relating to the publication of our results. This morning, we have released the results for the third quarter, respectively, the 9-month period 2025-'26. So it's available on the website, and it also went to the channels.

So what happened? The environment is still challenging, but we have completed the Precision program relating to the efficiency gains and being more profitable in the future. And we have confirmed the revised outlook. And in addition, which is very interesting for, I think, everybody of you, on 16th of July, VINCI Energies announced a voluntary public takeover. So now we will give you some more insights into our numbers, into the development and also what you can expect. You can ask your questions using the Q&A button and we will read them out in the end and answer all the questions you might have.

I will now hand over to Stefan Land, our CFO, who will now provide you with more details.

Thank you, Stefan.

Thank you, Nicole. Good morning, ladies and gentlemen. So then let's jump into our slides for Q3. Just for those of you who don't know us, just in the beginning at a glance, of what we are. So All for One is an international IT service and Consulting provider. We deliver majorly based on SAP services, the entire business suite through our network globally, it's called United VARs. So we have a territory of more than 100 countries with -- in that environment. And that's the way how we are 1 of 11 platinum partner on a worldwide base for SAP.

Awarded a lot of times, of course, but we are focusing definitely on industries like Machinery manufacturing, Life Science environment, Food and Beverage, wholesale, everything related to Defense and Aerospace, Professional services and Electronics, Plastic and Metal industries. And finally, we have also a stake in Automotive. So basically, we are servicing on a daily base 4,500 customers actively with more than 3,000 experts. And last fiscal, we did around about EUR 504 million in revenues, with thereof 53% of recurring revenues.

So what is our target? It is very easy. We want to be the world's leading SAP partner for medium-sized companies in our core industries and target markets. How are we going to achieve this? Basically, it's the portfolio we are offering. It is unique. So it is an integrated portfolio and provides an end-to-end IT, cloud and business transformation services. So customers relate all their data on applications, on artificial intelligence and the major business applications around.

Our services help them to transform and to build up businesses, operate and manage them and be innovative. So we help them to adopt and to scale on their processes, getting more efficiency, getting more competitiveness into their own market. And of course, finally, very important in that time, especially in the cloud and AI-driven scenario, we are focusing on security and protection. So governance is key for all of our customers in the future.

There is a very weak situation in the market, as you all know, especially in the industries we are servicing. And there is a lot to do of transformation in order to achieve this goal in 2030, as just mentioned by me. So we implemented a program, it's called Precision. It is a program to boost competitiveness and to be more innovative than competition, entering into the new kind of high-level services, basically supported by artificial intelligence.

So what we are doing in this scenario, we realign our delivery model and our go-to-market strategy. We rapidly integrate our new subsidiary, apsolut, as fast as we can, and we accelerate the investment in artificial intelligence resources and developments. So finally, of course, we are targeting a major part of reductions of operational expenses. So the one-off expenses, which we already booked in the third quarter is roughly EUR 20 million for this program. The positive impact is more or less the same amount per year. So we are shooting for an upgrade of EBIT, or downsizing the level of breakeven by EUR 20 million a year as of autumn '26 onwards.

Let's come to the major key results of the third quarter. So there is a very weak economy. Customers very often postpone projects, delay projects, make them smaller, try to stop them for a moment in order to save money. You know what is happening into our key territories, especially in the German, Austrian and Swiss market. So revenue have been around about EUR 380 million. It's flat. But if we deduct the revenues coming out of the apsolut acquisition, it was a minus of roughly 3% compared to last year. EBIT has been dramatically lowered as of June. So in a total, it is minus EUR 9.3 million. But as mentioned before, there is roughly EUR 20 million in special effects, extraordinary effects coming from Precision into that number. So if we adjust the onetime effects, we did around about EUR 10.9 million in operational EBIT before M&A effects, which is close to 3% of revenue.

So this is, of course, not the target for the company, but this is in that very weak scenario, the current situation of our own transformation we are sitting in into the cloud and the AI-related services. So if we are looking into the revenue streams, then you understand a little bit more what is happening into our business and what's happening in our top line. Our Cloud services, even there's a very difficult situation outside, are still growing organically, and it did 4% in the first 9 months but software and support -- so this is the old measurement of our industry, declining by 8% in the first 9 months.

And within that row, you see two different lines. One is basically the licenses and the commissions related to them. It declined by 26% compared to last year, and the support contracts are going down by another 4%. Consulting has a plus of 2%, but we have to adjust in this line also the acquisition of apsolut. So there is a weak utilization, coming from a weak market environment currently. So in total, the revenue adds up to EUR 380 million as it was 1 year before.

If we are looking into the segmentation, the geographic regions we are looking and managing our business, then we see a clear decreasing business currently due to the market and due to the transformation into the cloud and AI-based services of minus 3% in revenues. Even we have adjusted or included apsolut since 5 months. And the result was dropping from EUR 20.5 million to minus EUR 3.6 million, which is a margin of minus 1%. Of course, very much relating to one-off expenses. So if that would not be the case, it would be positive, but it would be lower than the year before.

If we are looking into the rest of Europe, excluding Germany, then we see already a revenue growth of 9%. It's partly coming from the apsolut acquisition, but it's also driven by Poland. So Poland has a different economic situation than the German-based territory.

So Switzerland and Austria is also in a work -- in a very weak situation, but Poland is growing quite nicely currently. So result was being influenced a little bit by the one-off expenses of Precision. But however, it was still a margin of close to 4% compared to 6% the year before. So the rest of the world, which is so far very small, but due to the acquisition of apsolut, we are getting some momentum now in the region, in Asia, especially. And therefore, the revenue is already increasing by 47% and the segment result in the first 9 months is also going up by another 96% to EUR 1.2 million.

So there is a nice margin already in that territory. And we try to leverage now, and that was part of the deal and the acquisition and the strategy we did to leverage on the margin now and on the business of apsolut and going into the different territories. So balance sheet is still very solid. Of course, net debt raised to EUR 104.6 million due to the acquisition of apsolut. Cash is still in a good shape. So we have been well prepared, close to EUR 62 million as of June. Operating cash flow was down to EUR 2.8 million.

Of course, we had the situation of lower performance. So EBIT was decreasing and declining, and we had some more cash payments relating to '24 and '25 this year than normal. But in a total, we had a positive operating cash flow. Equity ratio is down to 22% as planned. This is due to the acquisition of apsolut.

Employees. You can imagine we are going more international step by step. So more than 3,000 employees are now running on our payroll and 13% already in our extra territories, where we try to leverage the workload into that platforms now more and more, especially since apsolut is on board. So we have not only Egypt and Turkey, we're now also having the opportunity to leverage on our Indian colleagues and our Czech Republic colleagues in the total. So it's already on a level of 13%. This will be driven in the next few years further on in order to be competitiveness and to support our customers in the territories in Europe by very good and adequate services.

Employee retention is roughly at 92.4%. So it's a little bit up. And health index is exactly on the level of last year, 96.7%. As mentioned by Nicole in the beginning, a new chapter is opening. It begins now very soon. We are looking forward to this opportunity of VINCI. And what happened so far is, as mentioned before, on July 16, VINCI did a voluntary public takeover announcement. They are now preparing the offering in details in connection with the BaFin. And we believe that VINCI and especially VINCI Energies, so that's the segment where we should be in, within VINCI. The ICT brand of Axians within that will help us to leverage our business. So we strongly believe that this is a unique opportunity for all stakeholders, not only for the shareholders, also for the employees, for the partners and especially for the customers, for the midsized customers that we are entering into that opportunity.

The revised outlook we did on May 7 based on the ongoing economic and geopolitical uncertainty, as you all know, was EUR 500 million till EUR 530 million in sales. It was the same level as before, but now it was including the acquisition of apsolut, which we firstly consolidated in February this year. And EBIT before M&A effects will drop around 0 with a spread of roughly EUR 5 million plus or minus. So we confirm this based on the figures we have achieved in the third quarter and based on the outlook we are seeing for the fourth quarter, again, from the Board and of All for One.

Let's finally come to the midterm targets. So artificial intelligence will provide further growth. So we are sitting in the middle of the customer on his heart and servicing his applications, helping him with his data and artificial intelligence, in order to get his own business in a successful path and growth in the future. So a lot of migrations will happen. A lot of S/4 migrations will happen. As you all know, we are the #1 for midsized businesses. And based on the opportunity we are sitting -- we are seeing now with VINCI, we can even pace up, speed up this opportunity and help customers, especially in Europe to gain momentum and efficiency.

So there will be increasing revenue opportunities, everything relating to the cloud, to the environment of the cloud, the business applications, all the governance, which have to be improved, all the cybersecurity issues and the stability the companies need in order to run their global business. So including apsolut, we have the opportunity to leverage on X-shore to leverage on existing customer bases, especially in the upper mid-market, apsolut is also providing a lot of opportunities now in the upper mid-market.

So that's our target for the next few years. So it will boost our international strategy step by step in the first step in Europe, first territories in Asia. And from there on, we will probably go further on a worldwide landscape in order to provide the right service level to our customers. So we will run for a lot of organic growth after the transformation again. We see a lot of opportunities for inorganic growth. And profitability shall raise after this transformation soon. That's it from our side.

Thank you very much that you're joining us for today, and we would be open for some Q&A now.

Thank you, Stefan, for the explanations of the current development and the outlook. So you do have the possibility to put your questions into the Q&A module. I will start with the first question now. Stefan, can you provide us with a time line relating to the potential VINCI public offer?

Yes. Yes, we are expecting the publishment of the offer within the next 10 days. As of then, shareholders will get the offer to sell their shares for EUR 67.50 for another 5 weeks. And after the 5 weeks, the offering can be extended as far as we know. So VINCI has the opportunity to extend it by another time frame of roughly 2 weeks maximum. So finally, we will end up in a closing, we estimate in the beginning of October.

Okay. What do you expect from the cooperation with VINCI or Axians?

Well, we expect a lot of leverage in the sales. So a lot of momentum in the sales. So there will be very attractive customer relations from Axians, which we don't have so far. So we can bundle in the future also services, different IT services. Hopefully, and that's something we would go for, we can enter into new industries. So it would be very easy to enter into more utility and construction-related industries. So this would open up definitely new opportunities furthermore than now. Even we have already some roots in that industries.

There would be a major opportunity. It's really a growth market on a worldwide landscape for these industries. So this would help a lot. And on the cost side, yes, we will see. So we don't know VINCI. So far, we are not allowed to enter into detailed talks, but I see there are also some cost efficiency opportunities. So they have a global establishment all over the world, so we can leverage on different territories. So I would also see that there is a cost efficiency opportunity as well.

Thank you. Now a question relating to the numbers. On the top line, could you break down the organic versus M&A contribution to revenue and segment EBIT? Specifically, are the flat 9-month sales and the plus 5% growth in Q3 generally organic? Or are they entirely driven by the apsolut consolidation?

A lot of questions. Thank you. So I think I had it on one slide, the total number of revenues for the apsolut Group, but I'm not sure it was -- EUR 14.2 million. So you will find it on the slide key results. So if you deduct EUR 14.2 million out of the EUR 380 million, then you come to the organic number, it is a decline of roughly 3%.

The split between the territories, I don't have it right now here. But if you go into the slide number or you can just flip back, please, Germany, then you see that we had a minus 3% in revenue, and this does already include revenues out of apsolut. So I don't have the number in my brain right now, but I would say roughly 5% to 6% is the organic decrease in Germany in the first 9 months, basically to the transformation.

So a lot of customers are moving into the cloud. So we are not selling licenses anymore. So we are getting more subscriptions, much smaller than before. And utilization was not very high compared to last year, there was a decline in consulting revenues because customers always asking us, could we stop or wait for a moment to execute programs or projects and new projects will be very often postponed by another month or quarter.

So we do have a row of projects, which we are forwarding more than a year now already. So this is not an issue that the customer says, we will not do it with All for One or we will switch software to anyone else in the world. It's just an issue of, they stop innovation, focusing on their own results and profitability and cash flow in the first and afterwards, they will, of course, start to renovate their IT business and solutions and applications as well.

So if you look into rest of Europe on the next slide, please, then you see a growth of 9%. Most of the 9% comes through the acquisition of apsolut because we got some revenues also in Spain and in the U.K. and in Switzerland and Austria. But as mentioned before, we have also a very good momentum in Poland. So we are growing quite strongly, more than 5%, something like this in the first 9 months. And in the opposite, we have small decreasing numbers also as in Germany, in Austria and in Switzerland.

We are moving to the next slide, rest of the world. So this is provided by apsolut. It is the territory around Dubai, the GCC countries, mainly, and we are operating there out with roughly 60, 70 people business in Asia, and that's the reason why revenues went up from EUR 8.7 million to EUR 12.9 million. Hopefully, I got all the figures so far.

Question relating to the revenues. Would you be able to share your perspective on when consulting utilization could start improving, including any expectations for the fourth quarter?

Well, I can only say something to -- for this business year, as mentioned in my outlook further on. So we will definitely see our guidance on the EBIT and on the revenues. So within July, August and September, we will perform according to the guidance, which means we see a clear operational profit. A lot is relating also to Precision. So Precision has been closed or finalized more than 90% in the last quarter. And we are still -- we see first economics positively in the running quarter.

And that's the reason why we come to an EBIT -- operational EBIT, including all the onetime impacts of roughly 0, plus/minus EUR 5 million. And regarding utilization and ramp-up of utilization. So there is still a lot of uncertainty. It depends on different industries, of course, there are some pros and some cons. But however, the markets are very strong. So a lot of IT service company, also the global ones are fighting for customers in the German territory. So there is still, let's say, a huge offering of IT services, and it's not easy to close deals currently in the industry because customers are very cautious on investments still.

Another question relating to Germany also, yes, the general development there. Germany, which has swung into an operating loss, how much of that deterioration do you view as cyclical versus structural? And what recovery should we expect?

Yes. So excluding the one-off expenses of Precision, Germany was positive in the first quarter, but on a very low level. So as mentioned before, that's the reason for Precision. So we transform our services in order to leverage on our customer base. And currently, the growth rates are very tight, or negative. So we have to do that. We see a lot of efficiency also coming through the implementation of own software and artificial intelligence. So we have a new software tool in place. We're doing things more automatically than in the past.

Also on the development area, artificial intelligence provides a lot of speed up and efficiency, and that was the reason why we have -- had to be active. We had to do this now because in very strong or in very difficult market environments, we need to lower our breakeven hurdle -- level and to get more efficiency in our profit and loss scheme and in our services finally.

But if we -- if I'm looking into the order entry and looking what do we really implement successful on new recurring services, as mentioned before, new -- our software tools, e-invoicing tools, government-related stuff, first agents. So we did a wonderful deal. I'm not allowed to talk about the numbers, but a wonderful deal some weeks ago, which will add up to our recurring revenues and margins. So we really see that after this transformation into the cloud and artificial intelligence opportunities and security and governance opportunities, we will show very robust revenues and margins as well.

Now you already mentioned Precision question on the EUR 20 million of nonrecurring Precision charges. Could you walk us through the bridge, which is also given in the report? How much has already been booked through the third quarter? And how much is still to come in the fourth quarter? And of the EUR 17.8 million in personnel measures, what share is cash versus noncash?

Yes, you're very detailed. Thank you. It's especially in our report today on -- in the Internet as well and on the split is on Page #3. The EUR 17.8 million, 80%, 75%, 80% is cash related. So -- and this will happen within the next 3 months, 4 months, 5 months, something like this. So the payout on this. We have something between 95% and 100% realized so far in the numbers. So the total of nonrecurring effects are EUR 20.2 million. There will be not much more in the last quarter.

[Operator Instructions] So far, I don't see any more new questions coming. So thank you very much for the questions. Thank you very much for answering them and the introduction.

And I hand over to you, Stefan, for the last words.

Thank you, Nicole. Thank you to you, and thank you to all of you for the audience today. Thank you for joining us and the Q&A. And yes, I wish you a nice day. Bye.