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.

I welcome you to today's call relating to the publication of our first half year results. We have released our press release and ad hoc message on Thursday night, yesterday. You could then also download the half year report. So thank you for your interest in the company. There will be a Q&A session at the end. So if you have questions, please type them into the chat, and we will read them out and answer them at the end.

So we have released our numbers. We are facing challenging environment. The IT market is changing. Business AI is a big topic. You might have also seen the releases and information from SAP that they really want to become a business AI company. And we have also launched our program to increase the competitiveness of our companies, changed our forecast, but to give you more details, Michael Zitz, our CEO, will give you an insight about the market environment, the challenges, but also especially the opportunities that we do see in those markets. And then afterwards, Stefan Land, our CFO, will give you an insight into the numbers and the outlook. So a warm welcome to Michael. Thank you.

Nicole, thank you. And hello, and welcome, everybody. A warm welcome from my side. As Nicole already mentioned, I will talk about our company, the impact to our business model and especially a new technology boost in our business about artificial intelligence. But let's start with All for One, what we are doing every day, returning technology into business success, and we help our customers to become more competitive in their market. We have a clear goal in 2030. We want to become the #1 SAP partner in our key markets, in our key verticals for the mid-market. That's our clear goal in 2030. But let's have a look on our figures and the key KPIs which describe All for One as a best.

All for One is an IT consulting and service provider. We serve more than 4,000 customers. We have more than 3,000 employees, highly motivated employees in our company. And in the last fiscal year, which ends with the end of September, we did more than EUR 0.5 billion revenue turnover. And very important for us is our recurring revenue, and therefore, we realized more than 53% of the total revenue is recurring.

We are an industry specialist. We are focused on several verticals, for instance, the discrete manufacturing or the life science or also the defense and aerospace industry. We deliver our whole portfolio globally in more than 100 countries with more than 10,000 consultants with our global network and the network is called United VARs.

Our key partner is SAP. We do more and deliver more than 98% of the whole SAP portfolio, and we are awarded from SAP, the latest award is the Global Partner Award for the most successful SAP partner in reselling SAP Business Suite in 2025. We are awarded from several customers for successful projects and also from employer platforms for our organization, for our culture and how we interact with our whole workforce in our company.

At the bottom of the slide, you see our integrated portfolio. We help our customers to accelerate their IT, cloud and business transformation. The whole transformation is based on the SAP portfolio with application, with the data solution and with the embedded AI. And on this foundation, we build our 5 key portfolio areas. The first area, the implementation area, we deliver end-to-end industry-specific processes with embedded AI to accelerate the business and to gain more efficiency in our customers' business.

The second pillar is we close white spaces in the SAP landscape to follow the [ key and core ] strategy of SAP. We develop own products and also we develop our own AI agents. Yesterday, in Christian Klein's keynote in Orlando, we was named as one of the 20 partners worldwide who developed more than 20 AI agents and these agents are live in customers' process landscape.

The third portfolio item or pillar is our managed cloud operations. We have our own data centers in Frankfurt and Poland in European Union to fulfill the requirement of sovereignty around the SAP cloud solutions. The fourth pillar is our service business. After go-live, after implementing new projects, we help our customers to stable the business, to improve their business with new features available in the cloud. Solutions update every quarter in their specific area in their industry. And the fifth portfolio item is the latest acquisition and the latest topic we accelerate in our own portfolio with the cybersecurity and compliance portfolio. There, we deliver OT and IT security around the whole process landscape and the whole company environment in our -- at our customer site.

But now let's have a look to our key markets. There, we are serving our portfolio. There, you see we are a strong player in the European market around the German-speaking countries, Germany, Austria, Switzerland and Poland. With the latest acquisition of the apsolut Group, we also serve our portfolio in United Kingdom, in France, in Spain and the GCC region. You see this country on this slide in the orange colored countries. And you also see for violet color countries that's our shoring locations with India, more than 150 employees are located in India, more than 180 employees are located in Egypt, 100 employees are located in Turkey and also a few employees are located in the Czech Republic.

You see there is a big market for IT services. The study conducted by Statista, the value for 2025, it's EUR 1.5 trillion market volume in this -- in the global IT service market.

There is the deep dive in our global delivery landscape. You saw it already on the first slide. That is our ability and our answer to fulfill the requirements of global rollouts for our customers. 20 years ago, we co-founded the United VAR network. And so today, with more than 70 partners in our network, we are able to deliver from Europe into the whole world the rollout, the cloud solutions together with partners from the U.S. market with Answerthink as an example, to China, it's no problem for us to fulfill 24/7 requirements or follow-the-sun content.

Now let's have a deep dive into our integrated portfolio. I think it's clear the center of our daily work is the customer. And we sell software from SAP cloud software applications. These applications generate data, and with this data, embedded AI can deliver more efficiency to our customer. And on this foundation, we build and we develop our own portfolio, our own AI-driven portfolio. You see on this slide our 5 service pillars around the customer, around the SAP software core. First, the transform and consult area. In this area, we deliver, we implement end-to-end industry-specific processes. We adopt artificial intelligence, which are embedded in the core solutions of SAP.

In the second area, we build and activate with our own product companies called blue-zone. We develop products. We have our own partner structure around the globe. We have at the time -- for the time being, more than 20 partners who sell our products, which we are developing in our own product company, blue-zone. And in the last month, as I mentioned already, we also develop our own AI agents.

The third service pillar, the manage and operate field. With our data centers, our own data centers, we fulfill the requirements for sovereignty in the European region around the SAP cloud solutions core. The fourth pillar is a big growth area for our future, the service area with the scale and adopt features of our smart service family. We deliver new features. We deliver PPO services, and we deliver also the classical application service area 24/7 follow-the-sun together with our United VARs partner. And the fifth service pillar is the security product area, cybersecurity with IT and OT security around the whole process landscape in our customer base.

But now let's have a deeper look in the impact of AI to our portfolio. And for us, it's one thing clear. For us, AI is not a threat. AI is a huge opportunity for us as IT service provider for All for One. And the latest study from -- conducted by Gartner, you see the growth rates for each service pillar of our integrated portfolio. And the third column, the most important column because you see double-digit growth rates until 2029. And there is a EUR 500 billion opportunity in 2029 for AI services around the classical services and the software solution. And we are absolutely clear that, that is a big part for us where we will step in, in the next months and years and to cover most of this opportunity around AI services.

SAP, as I mentioned already, the foundation of our daily doing is the whole SAP portfolio. This slide was the latest portfolio before yesterday. Because yesterday, Christian Klein announced the new SAP strategy, the next era with the autonomous enterprise. And so they launched the new business AI platform, where they bring together the data platform, the technology platform and the whole business AI. And they match all common LLMs together with the company brain. And the company brain is the ERP. And the strategy is clear, as Christian mentioned yesterday, SAP is not more a software company, SAP is a business AI company, and therefore, it's really important to understand this turning point. And my personal view on this topic is absolutely clear. Now we are at a turning point for service provider for All for One, and therefore, we said last week the right actions to pursue, to become an AI service provider for the future based on the business AI portfolio of SAP, and therefore, we launched our own program to improve our own competitiveness for All for One. The name is Precision. And AI brings a massive change in our whole business model, and therefore, we adapt our delivery model. We have to adapt our delivery model, our go-to-market strategy, our own cost structure and also to accelerate in the integration of our latest acquisition, the apsolut Group because with this new autonomous enterprise strategy of SAP, it's very important to deliver end-to-end with every agent in every line of business as one hand, and we are able as All for One to deliver this whole portfolio as one partner.

And SAP confirmed that there are a few partners globally who are able to deliver the whole portfolio from one hand. And therefore, you see in the slide, we invest EUR 20 million in this year in our own competitiveness to become ready for the new era, for the new AI technology opportunity. And that brings us in the upcoming year's EUR 20 million more operating margin in our bottom line.

To summarize my part of the presentation, for me, it's absolutely clear. Now is the turning point for All for One. And in the future, it's a huge opportunity for us to accelerate our business with AI -- with an AI-driven portfolio. We have the right customer segment. We have the right portfolio. We have the full focus on AI services. We are -- have the right setup with an European footprint to deliver globally with United VARs in more than 100 countries, and we have the right team to go this step forward to play at the forefront of the next era of IT service provider.

That's my part at the moment. Hopefully, I can answer some questions at the end. But now I hand over to my colleague, Stefan Land, to give a deep dive into our half year figures.

Thank you, Michael. Hello, ladies and gentlemen. So let's have a look into the first half year figures before we are looking into the future again based on all the items just Michael mentioned. Unfortunately, it was a very weak time, as you can imagine. So let's focus on why we are dropping in revenues and in margins. So what is the reason behind -- what was the reason behind, and how we're going to solve these issues in order to look forward and come into a next phase of growth and higher margins?

So first of all, there is very uncertainty in the geopolitical situation, as you know. So C levels are currently very nervous in the German-speaking region especially, but this does not count all over the world. It's really a German-speaking region issue, as we can imagine from our side. And this raised to a drop in revenues in a total of 3%. So we just did EUR 250 million in the first half year. And our EBIT before M&A effects was showing EUR 6.9 million, which is a minus of 50%. So margin dropped to just 2.8%. So this is, of course, not our target, and this was not our planning. But the geopolitics and all the delays of projects, all the items that C levels did not execute transformation projects because they are struggling with their own businesses. They try to take care about their own businesses and corporates in order to be ready for the next phase of digitalization and also to be ready if the geopolitical uncertainty or situation is going to even worse in the future than now. Nobody knows.

But let's focus also on the third key figure on this chart, it's EUR 9.4 million. So this does exclude already some activities we started in the last 3 months because this is something we don't know from yesterday, of course. And so there's a lot of severance payments and restructuring we already started, and therefore, you see that the operating value, the operating result was EUR 9.4 million, which was not an excuse now, but it is just to say it is a little bit better than 2.8%.

Going into the details of revenues, this contributes to the reasons why we are missing revenues. Why we are dropping in margins. And you can see that the cloud activities are growing very robust by 3%, but we have software-related revenues, onetime revenues in licenses and commissions that dropped by 25%. So this was a surprise to us because the execution rate of all of our leads is very weak. So we have a lot of pipeline deals in our customer relationship management, and these were always delayed and delayed and delayed. And this situation raised up EUR 12.3 million, which was a minus of 25%. So this is really revenue which contributes 100% to our EBIT.

Support is declining by 4%. This is more or less in budget because we know that corporates are transforming business from on-premise to the cloud step by step. This is okay with us. Support does not only having a 100% margin because it's a resell model. So there's a very small margin, which we are losing with the decline in revenues. This is something different to the onetime commissions. And of course, consulting was also dropping by 3% in the total. Even we had apsolut, our acquisition in March already consolidated then it was in 4%. So this does also relating to the decision-makers and our customers. They always try to lower volumes in existing running projects and they want to delay projects to the future.

So having a look on the segments. We changed our segmentation to the regional structure of Germany, Europe and the rest of the world. You can clearly see on that slide that the problem is sitting mainly in Germany. So we declined by 4% and result was down to EUR 10.7 million, which was a minus of 31% and margin dropped to 5.3%. So all these margins are excluding our central group expenses. The reasons are very clear. I just mentioned it before. It is the economic situation in our industries, clearly. And of course, also the weakness now how we are entering into the artificial intelligence services and businesses from a corporate side.

In Europe, we had an increase of 2%. This was mainly related to a very good economy situation in Poland. So Poland is doing well, but we have also a very weak one in Austria and Switzerland, German-speaking region. So in a total, it was a plus of 2%. And the segment result dropped by 52% to EUR 2.1 million and to a margin of 3.5%.

Rest of the world is doing well, but it's heavily influenced by the apsolut Group because apsolut is contributing a lot of countries to us also in the rest of the world, and we have been very small there. So in total, we increased revenues by 19%. We have a positive result already, even the business is very small, EUR 0.6 million, which is a margin of 8.6%. So this is something which fits to the execution strategy, which has been mentioned by Michael before. So we want to be a global deliverer of SAP service in the main territories in the future.

We have a very solid balance sheet. Cash was raising to EUR 74.9 million. This is due to the fact that we raised successfully promissory notes again in the first quarter of the business year. We used these cash or these funds in order to invest it into our global strategy. The biggest one is apsolut Group. We acquired apsolut in January and closed in March this year. So we are consolidating the group as of March. Net debt raised because we used the cash and had more debt, of course, from EUR 43 million to EUR 91.7 million.

Operating cash flow was EUR 10 million -- EUR 10.6 million in the first half year last year. Now it's minus EUR 2.1 million. So there was a lot of cash out related to the apsolut Group in March, and there is a lot related to the lower result than before. But this is typically that we have a very weak cash flow in the first half year. We will definitely come to a very positive cash flow operational in the second half year.

So equity was down due to a long balance sheet, more debt and the investment in apsolut. Equity was down to 25% coming from 33% on the 30th of September in 2025.

Employees. So just to show you, and that's the reason why we're always showing this since more than 2 years now, we are raising our workbenches in Egypt and Turkey. And now we have also a big one in India coming through with the acquisition of apsolut, and we have some opportunities and workbench in Czech Republic as well. So in a total, 13% of our employees already working on nearshore and offshore entities out of 3,073 employees.

Employee retention was on schedule like last year, 91.2% and health index was 96.3%, which was also on the level of last year.

So let's come to the forecast for this year, to the outlook, to the revised outlook. Why we are saying as of May 7 last week that revenue is only EUR 500 million to EUR 530 million, including apsolut, and apsolut is doing a little bit more than EUR 40 million a year on a yearly base. And why are we saying that the operating EBIT is around 0, plus EUR 5 million, minus EUR 5 million, we don't know exactly so far because the operating EBIT is now including approximately EUR 20 million of onetime expenses in the business year '25, '26. And most of it relates to severance payments and restructuring and lowering fixed costs on a global base. And this will add another EUR 20 million per year in the future.

And coming to the next year's outlook or to the future outlook. So far, we are not going to give details about next year's growth and margins. But what we would like to show you here are very clear which kind of opportunities we see, what we would like to execute in the next quarters for organic and inorganic growth and for the increase of profitability. As mentioned by Michael before, artificial intelligence will provide additional growth. It is not only the Gartner study, which has been shown by Michael. We also know some other studies by Boston Consulting who clearly say which kind of IT services will grow heavily within the next few years and which kind of services, I always say the easy services, the infrastructure services, ticketing. So this is something you will not add a lot of value to the customer in his own value-added process, but all the value-added process, the end-to-end processes, all the governance, all the orchestrations and the security customers will give a lot of orders to IT service industries because this has to be done, and it's much more complex than in the past and corporates cannot do it on themselves.

So the migration will drive a lot of customers into S/4HANA in the next few years. We will have a lot of increasing revenues. We will see more and more recurring services in the cloud. This will provide a lot of stability, reliable, and we can improve the margins because we can manage that the work will be packaged much more than in the past and can contribute with our setup of near and X-shore locations, including apsolut, and apsolut was strategically very important for the execution of the Strategy 2030.

So apsolut is providing not only the access to new markets, they have more than 400 customers in the upper mid-size -- upper mid-market area, where we would like to enter much faster than in the past. And as mentioned before by Michael, there is a lot of new AI-related services and product solutions, also a lot of agents already on the SAP portfolio mentioned by Mr. Klein yesterday, which will contribute to our business, which will contribute to the situation with the customer and will bind the customer into our future portfolio much more than in the past.

So that's it also from my side. And we would be very happy, Michael and myself, to get further questions from you. Thank you.

Thank you, Stefan. As mentioned in the beginning, you can put your questions into the chat and I will read them out and we will answer them. So first question relating to the announcement of SAP that AI will also be available on-premise. What's your view on that?

Absolute positive message for All for One. It's a totally change of the SAP of the cloud-first strategy. That's clear. But now for us, we get the opportunity also to deliver AI to our whole on-premise customer base. As you know, more than 1,000 ERP customers in our customer base and around about 60% for the time being on the on-premise structure, on the on-premise model. And so they are now -- AI is available for them, but with one restriction, they have to invest in cloud subscription. They need more than 50% cloud subscription in comparison to the maintenance revenue to have the -- or they are allowed to use the AI. And that are 2 opportunities for us, to deliver more line of business solutions, customer experience, HR, business analytics and spend solutions with apsolut Group, and we can deliver to the whole customer base on-premise.

And there is -- the pressure is not so high in the next 2 to 3 years to go the conversion path. And so we have more time to deliver this conversion. And so for us, 3 opportunities with this announcement and also relating to the schedule of the conversion business, as you know, in the SAP field, 2027, the maintenance will end. You can continue the maintenance until 2030. But with this announcement, it's clear the peak of the conversion wave, yes, will come at 2030 plus. And so it's a good message for us because it's a huge customer base, and we want to combine our whole customer base to the new cloud area. And so in a nutshell, good message for us, and we are very happy about this announcement.

Thank you. Next question, on the Precision program, can you clarify the expected phasing of the up to EUR 20 million one-off costs throughout the second half of 2025, '26? Also, what are the key investment areas behind these expenses?

I would start with the first part of the question is, so we will execute the program up to end of June. So we will probably see close to 100% of the expenses related in June. We already started these days. So this will -- you will see a very weak third quarter because this will be hidden by a lot of onetime expenses. And you will see a much better fourth quarter already with a higher operating margin than before. Regarding the different areas, I would like to hand over again to you a little bit what are the major intention of this program?

Yes. As I mentioned in my part of the presentation, we want to become an AI-driven IT service provider. And it's clear, we need the right capabilities, we need the right mindset, and we have to enable our workforce, we have to get new employees on board to our workforce to deliver this AI to our whole customer base. And there's one example. Now, for the time being, there are more than 400 embedded AI cases in SAP Business Suite. And the whole consulting team must be enabled to deliver these AI cases. And there will also come a change, as we heard yesterday, in the pricing model with AI with SAP will featuring a consumption-based model. And so we have to adopt to activate the AI in their solutions to get the revenue stream to our subscriptions. And so for us, it's the right step now to be on the forefront to become this AI-driven IT consulting and service provider. And yes, we do that with high speed.

Maybe I could add some internal processing. So don't forget that we have just acquired apsolut. So this is a company with roughly 430, 400-something employees globally in 8 different countries. So we will work out very fast our post-merger integration. So this will not going to end, and that was the reason why I'm saying no, it's not final 100%. Of course, we need some time for the integration. So we try to fix them very fast into our processes, into our IT structures and everything around. We try to streamline ourselves, our internal processes. So we are already working on the digitalization of a lot of processes on top what we usually plan to do. We speed up everything regarding this, and this will open up further efficiency and lowering also internal costs. So not only on the customer side, also on the internal side, which is a little bit smaller, but this is also part of the project.

Okay. Just another question also relating to Precision restructuring detail. Can you break down the up to EUR 20 million one-off expenses by nature being redundancies, IT and process harmonization, legal restructuring and quantify the number of FTEs concerned, which geographies, function? So if you can give some light there?

We are not disclosing details, but the major part, so more than 50% relates to severance payments. And the major part relates to the German territory -- especially to the German territory.

Okay. So relating to that savings, the EUR 20 million annual savings expected from autumn 2026 onwards, are they net or [ gross ] of reinvestments in AI and nearshore capacity? And should we model a full year impact in full year 2026, '27 or a phased ramp-up?

It's a net effect on the business year '26, '27 starting on 1st of October. So it's a net effect. So this means that we will see EUR 20 million lower operating cost without a damage in capacity to the market. And of course, we all hope and cross our fingers that markets are continue to get better step by step than now. But we will be prepared also to further growth. So capacity will be big enough to grow also in the coming years, and that's the plan.

And relating to that, when should we see the profitability and margin increase through that saving program?

As mentioned, so in Q4, you will see -- if you look into the details of the cost structures in Q3 and in Q4, you will see something definitely. So there will be a markup in Q4 on the operating margin. And then in the next year, you will see the full impact.

Okay. Now relating to future growth. Cloud and services grew only 3% and recurring revenue stagnated this semester. What is the path back to double-digit cloud growth? And how do you protect partner economics as SAP captures more value directly through Joule and its AI agents?

That's hard to explain this 3% cloud growth on our side and to compare it, the cloud growth with other software companies because there are different selling models. There's the resell, there's the commission model. And if we only show a commission in our top line, it's a totally different volume as we show in resell volume. And so for us, it's a 3% growth in the cloud area. It's the right way to moving forward. And now this growth will continue. It's clear because we have the upcoming events with Autonomous Enterprise, with the Business Suite, with the S/4HANA Public and with the growth solution of SAP and also with the latest announcement with the business AI platform that they bring in the data cloud, the technology platform and the business AI that's all in the cloud. And so that will foster this new announcement and this new solutions will foster our cloud growth in the upcoming years.

Okay. Now relating a question to the acquisition. Is apsolut profitable? Are there exceptional expenses in 2025 and '26 related to that?

The exceptional expenses are included in the EUR 20 million package. And yes, they do profit as of 2025. So '26, we have a plan, but they do make profit again, yes.

Maybe at this point, it's also worth to mention the announcement of Thomas Herbst is step up to the global leaders board as the Chief Operating Officer. And I think that's a clear sign about the trust and about the business he did in the last years. And with the business of apsolut, with the spend business, there are other solutions, Ariba and Fieldglass, we are the world leader in that business. And also Thomas is attending the Sapphire in Orlando, and he is on stage with the global leader, Peter Graulich, to discuss customer cases. And so I think that's also worth to talk about it. And that's -- yes, as you mentioned, Stefan, it was a strategic fit -- strategic acquisition and a perfect fit for our future growth.

Thank you. If there are any questions, please put them into the chat. I don't see any more questions. So thank you, everybody, for attending our call, for your questions. And anyway, if you have questions afterwards, just get in contact with us. And now I hand over to Stefan and Michael for the last words.

Thank you for being with us today.

Thank you for participating and hopefully see you next time. And yes, the next step in the evolution progress of All for One to becoming an AI-driven IT consulting and service provider. Thank you very much, and see you soon.

Good morning, everybody. Welcome to our call today relating to the publication of our First Quarter results. Yes, we've released our numbers on Wednesday because we went to an investor conference yesterday. We are holding our call today. So what can you expect? We have published or announced the acquisition of apsolut.

So we are growing more and more internationally. We have also shown for the first time our new segmentation away from core and LOB towards regional reporting structure, reflecting our new operating model according to the country and which also enables us now to reflect the growth that we are focusing on.

And now Stefan Land, our CFO, will explain you about the challenges that we're facing in the market, but also about the opportunities and the potential that we do see because we are very well positioned in the SAP and consulting market. So welcome, Stefan Land, our CFO. Thank you.

Thank you, Nicole. Good morning, everybody. Yes, for those of you who are not so close to our business, I would spend a few minutes just in the beginning on what we are and what we do and what is our transformation way, and then we are entering exactly what Nicole mentioned already in the news of the quarter and of the past few weeks.

So as you can see, we are an international IT provider in consulting for services and consulting with a very strong SAP focus. So SAP is awarding us generally a few times a year. So we are the partner of the year currently in middle of Europe, Eastern Europe in the past few years. And globally, we are the #1 for transforming to S/4HANA, the new software tool of SAP in the past few years.

We are a validated rights partner. We are part of the United VARs network, which is 1 of 10 Platinum partners currently. It means that we are facing also the situation that we can roll out for our customers, the SAP software tools through more than 100 countries, and we are carrying also the Platinum partner as all the others as well. So we are servicing 4,000 customers actively.

And we are focusing on industries like manufacturing, life science, consumer products, automotive suppliers, wholesalers and professional services. We are doing roughly EUR 0.5 billion in revenues, more than 50% is already recurring. So that's the cloud. And EBITDA margin was in the past business year at 9.4%. We transformed the past few years from a reseller model, so just selling licenses and support contracts and then implementing software now to an international cloud-based IT consulting and service provider.

Of course, this provides a lot of opportunities because within the cloud, there is the opportunity to service and to implement new services, especially with the security, compliance-related, AI-based and adopt them and help customers to get end-to-end processes digitalized. So there's a lot of opportunity. But of course, there is also a challenge.

And the challenge is new competitors who are experts in dedicated processes and services on a global landscape. In Q2, so end of January, we announced that we signed a contract with apsolut Group. Apsolut Group is the #1 SAP partner for SAP procurement. So we have strengthened our portfolio, what you see on the right side of the slide, even more than in the past, related to the spend management and supply chain management.

So procurement is now key of our portfolio, which we missed and did with some partners, especially with apsolut in the past in the project. Now we are opening up another 450 other mid-market customers. That's exactly where we would like to enter more and more with our services globally. We can accelerate on the India work bench, which has been established by apsolut in the past few years.

So we are welcoming more than 140 new colleagues in India as well. We are opening up additional countries like the U.K. And in Asia, so everything around the Emirates, Saudi Arabia and these countries are also now covered by us directly. So if you see this on the landscape, you see on the right side is the United VARs network. That's where we are part of it. We founded this 15 years ago.

We have more than 10,000 consultants in roughly 100 countries. And on the left side, you see our direct sales force and work benches. So we are mainly now in Western -- Northwestern Europe based, especially, of course, in the German-speaking area. We are servicing in a total out of 61 locations. And you see our 3 work benches in Turkey, Egypt and in India now.

So we are really actively trying to get our expertise now more globally in order to come into the upper mid-market customers more and more. So let's focus on Q1. And of course, on the financial performance, which is -- which was not very exciting. Why? There is a temporary phase. Number one, cloud cuts revenue growth of our business. As mentioned before, we have been a reseller.

So we sold a lot of licenses and support contracts and purchased the licenses and the support contracts at SAP and our second partner, Microsoft. Now we are just getting direct commission-based schemes, which ends up in lower revenues, but provides more margin in the future. There is an increased geopolitical uncertainty, especially in the German-speaking area, which leads to further delays in project launches and fewer new contracts for our ERP migrations to S/4HANA.

These 2 big impacts have been driving our margin down to 5.3%, coming from 8.2% in the first quarter last year. So let's enter a little bit more into details and starting with the driver of the EBIT, which is the revenue streams. And you see on that slide, the different lines and totally different developments of revenues. So in the middle, you see the software and support area, which have been impacted by the transition to cloud-based commission models.

So licenses and commissions have been decreased by 35% to just EUR 9.1 million because C-levels are not entering and signing, executing new contracts currently. They are a little bit nervous because they have a lot of homeworks, especially in the industry-focused ones like in the machinery manufacturing and the automotive suppliers, we see currently a block of decision-making because they have a lot to do to get their business into a secure area coming into profits before they are acting and saying we will invest into the digitalization of the future.

On top of this, you see support is just declining by 3% because if customers do not convert and migrate into the cloud, into the S/4HANA systems, then they will still need support. But of course, they are not growing. They are not hiring new people. They try to lay off workforce. And that's the reason why this area is just, let's say, flat or minus 3%. On the other hand, you see the first top line cloud services.

Cloud services is growing very robust with 3%. 3% is not exciting, of course, that's not our target for the future. But due to the fact that no one is starting the migration paths now, nobody is entering into commission models, subscription models and so on. And on top of this, they do not extend the portfolio. They do not hire new people who need additional subscriptions in order to work in the respective software tools.

Finally, you see the consulting line. So consulting dropped by 7%. Why? Because we do not have enough execution in new projects. And that's the reason why consulting, which is not 100% recurring, is dropping by 7% currently. So if we divide now our business in the future, we decided to show different regions except or instead of the former segment reporting into different portfolio areas. Why we are doing this?

Number one is we have established last business year a new operating model based on our strategy 2030 because we would like to enter into other mid-market customers. We have to provide in the key territories, our own support done by our own work bench. And on top of this, we have to provide more cloud-related additional services relating on AI, security and compliance.

All of this is following now into our operating model. And therefore, we divide the segments now in Germany because it's still our key market so far. We open up Europe and rest of the world. And the reasons for dropping in revenues, what you're seeing here and in margin are exactly of the same like I just mentioned on a group level. So revenue declined by 6% contribution margin was minus 26% and the margin was down to 8% operational.

International, I'm just summarizing Europe and the world because without the acquisition of apsolut, which we are expecting to entering into our figures 1st of March with the closing or the latest 1st of April, it does not make sense to show Europe and rest of the world separately because rest of the world, we're just having internal work benches in Egypt so far. So revenue declined by 7% in Europe and margin came down from 12.6% to 7% in the first quarter of the business year.

So we have a very solid balance sheet and we raised net proceeds of EUR 49 million out of promissory notes in the first quarter in order to prepare ourselves to grow into new markets and portfolio elements. And number one has already been executed. That's the apsolut Group, which is a big move forward because we now have closed the gap of procurement. We entered into new territories already established, and we have an additional work bench in India, fully floating now, and we can scale on it immediately.

So operating cash flow was very good in the first quarter, just minus EUR 1.1 million instead of EUR 7.3 million the year before, because you all -- as you may know, we pay out to all of our colleagues in the first quarter, the variable salaries of the year before. That's the reason why we are always entering into the business year in the first quarter negative. We have -- we had a free cash flow of minus EUR 7 million, which was very good for the first quarter.

Equity ratio was dropping to 30%, which is due to the high cash position of EUR 108 million because we raised funds of EUR 49 million net. So there is a very solid financial position in order to go into more acquisitions and inorganic growth in the next few quarters and years. Some more KPIs relating to employees. So we are roughly 2,600 without the acquisition so far down from 2,770 the year before.

Already 25% are coming out of international business in Poland, Turkey and our work bench in Egypt and Turkey. Employee retention is roughly at 90%. So that's more or less our target. We are fine with that. Health index is not on schedule. So 96% is too low. We are working strongly to get this up closer to 97%. So -- and hoping to getting more efficiency into our work bench and into the group in the coming few quarters.

There is a long-term story on the earnings and the dividend strategy, as you can follow on this graph. So the past 11 or 12 years, we always raised dividends or have kept it stable over time. Now we are going into a little bit other direction. We decided to use more proceeds, more earnings for the future acquisitions and growth part. Of course, the earnings per share came down to EUR 2.3 per share. However, EUR 1.2 is still on the target we are always providing to the market.

So we give a dividend between 40% and 50% of net earnings. That's the outlook provided in November for the business year '25, '26. And you see we would like to keep revenue more or less stable between EUR 500 million, EUR 530 million. EBIT margin shall move forward a little bit from 5.2% last year to 5.5% to 6.5%, which ends up also that the EBIT before M&A effects, that's our operating EBIT or results shall also move to EUR 27.5 million to EUR 34.5 million.

Of course, it is a challenge because the start in the new business year was not exciting, but we have a very good funnel. We see in our customer relationship management, a lot of opportunities and volumes, which still convince us that we can come into that range of figures. However, we are in a very uncertain situation currently. So the geopolitical situation are currently driving C-levels into other decisions.

They stop investments immediately very often, prompting them to short-term cost-cutting measures. So that's the key for a lot of C-levels right now. Even they know they have to digitalize the business. They have to go to the cloud. They have to focus on end-to-end process globally in order to be successful and innovative in the future. So strategically, we feel on the right path. So they will return to us. There is more or less no one in the market who is saying we don't digitalize.

We don't trust in the SAP strategy. We don't see the additional services are the right ones you're providing to us, but they have limited funds. So we have the clear picture that we will return to organic growth in the mid-single-digit percentage range. We will drive M&A further on. So apsolut will roughly add EUR 40 million per year in revenues. And we really trust in the scalability and opportunity of our business model. So the margin, the profitability margin will sustainable raise step by step in the cloud.

Even we are in a very weak situation now coming from lower-end revenue growth, we see a clear picture that cloud provides to our business model additional margin opportunities and much more robust than in the past. So ladies and gentlemen, that was our Q1 update so far, and we would be very happy to get some of your feedbacks for Q1 and of course, questions as well. Thank you.

Thank you, Stefan. Just to everybody in the call, you can put your questions in the chat, and I will read them out and we will answer them here directly. I will start with the first question. On your screen, you had something about AI and data in the middle. Can you give us a bit of a feeling what do you expect internally, externally? And in general, what kind of impact do you expect from AI?

Thank you. Yes, one of the key drivers in the financial markets currently. Thank you for this question, especially for the split internally, so for ourselves and for customers. I would like to start internally. So we see and we are working on 2 very strong AI-supported processes.

Number one is the service process to our customers. So we are implementing one of the leading software tools is called ServiceNow. Some of you may know this. So it's the ex-CEO of SAP. And this will provide us the opportunity to do automatic AI-based answering and services.

So we are loading all our historic ticketing. It's a few hundred thousands of tickets into the AI model of ServiceNow, which will help us to return tickets of the customers in the future automatically and, of course, AI supported. So this will help us to streamline our service costs and to leverage into new service opportunities.

Number two, we are working on our entire process of order processing. So we are using the tools of SAP like tool in order to get it more automated and more supported by AI, which means we have an own language -- large language model updated with our own data and invoices the past few years, and we're trying to leverage then on these AI tools in order to make order processing in the future much more automated than in the past.

There are some minor opportunities as well, but these are the 2 key issues internally in our own processes we are working on. Regarding the outside or regarding our service portfolio, so far, there is no AI, let's say, platform available for us or done by us, which would ramp up revenues to the All for One model.

What we clearly have in the pipe and working on in some projects with some customers, we do dedicated AI-supported solutions, especially in the production area and the logistics area. So they are running a lot of projects also with AI tools on top, and we are helping customers to entering into this world and getting more efficiency out.

So this is something which will grow step by step that we are using AI on ourselves in the projects to the customer to provide more efficiency to customer and help ourselves to get also projects with higher margins than in the past. Of course, AI support for consultants is something which is growing quarter-by-quarter.

And in a few years, we will see a totally different approach how an implementation of a software and the service of a software will be supported in the back end by AI tools for customers of All for One. But so far, so good. We are not an AI, let's say, product company or service company based, but we are using the tools, SAP will entering into the software world of SAP. And we do have additional own projects together with customers to get additional value in their business and using the tools for customers to make the projects much more faster and efficient than in the past.

Okay. Thank you. Next question more on the financial term. Which levers do you plan to utilize to drive growth over the next 3 quarters in order to reach your 2026 top line guidance?

Well, there are different -- we have different scenarios. Number one is we are connecting to a lot of partners globally, which -- who need additional expertise in conversions and migrations because we do have a lot of expertise. We are the #1 in the world of migrating to S/4HANA. So even we are losing some average price level, we try to get more workload into that.

Of course, we are not growing our staff as planned, so far, so good in order to get more efficiency on the profitability sooner or later. And we try to get more execution rate of the customers. So our sales folks do have a very clear plan and working on activities to get more execution rate out of the pipeline. There is a very strong competition. We are not the only one in the market fighting for this, but we hopefully will win more deals. So we are very positive currently what we are getting in as order income in order to get more top line in revenues the next few quarters.

Okay. So next question on the margin.

Maybe I add there is due to the apsolut opportunity now also some cross-selling opportunities. So this means that we have already 2, 3 projects in the pipe coming from apsolut, where we're jointly approaching now bigger customers in Europe also to enter with our All for One portfolio outside of the procurement.

Okay. Thank you. So now coming from the top line to the margins. While margins are currently compressing, the full year target remains within reach. What specific levers are you deploying to mitigate this compression? Furthermore, as you scale your offshoring and near-shoring initiatives, do you still see the capacity for slight margin expansion in the near term?

Well, the margin will be driven the next few quarters very much out of the top line. So because we are working on our cost structures since more than a year now. And if you follow our headcount, we have done a lot. If you follow our announcements regarding severance payments, we did a lot in the past few quarters. So the cost efficiency is much higher than 5 or 6 quarters before, but now we need more top line.

So the utilization is key. If we get utilization up, it will run or it will fall down into the EBIT by 100%, even in the consulting area because we are not fully utilized right now. So we need more fire in the top line, and we will immediately see an upgrade in our margins. Yes, of course, if available, we are still working very hard to get more capacities out of nearshore and offshore.

And we will work quite strongly also on the India opportunity now. So there's already a project running of integration, these capacities and add additional capacities into our India office very soon and provide services to our customers.

Okay. Thank you. You are now reporting in a new way. So could you just give us a feel about the former CORE and LOB development? So what do you expect? Or what do you see at the moment?

Thank you. Very good question. Let me say some sentences, so there's still some time left on this. So I said, and that's the truth that we changed our operating model. But on top, there is another weakness in the portfolio elements because we are servicing more and more end-to-end. What does it mean?

How shall we split end-to-end processes into dedicated portfolio elements. And SAP changed their own strategy, they are now selling a business suite. So if we are entering now into a contract with a customer who gets a business suite for a monthly subscription of whatever, let's say, EUR 10,000, then we don't know exactly does he use in the next few months and how much is related to customer experience, to payroll, to success factors to ERP.

And SAP changed their strategy already some years ago because they always jump between the different portfolios elements and doing it still internally because at the end, it is one process. So we can't really -- in a few years, we will not be able to say how big is your ERP business.

So it's very, very difficult because it will all be managed in an end-to-end process through different functionalities of the customer. So far, we are, of course, monitoring this internally. It's a matrix organization. And we see the clear picture that ERP in conjunction with the business analytics is impacted by the geopolitical situation, we don't get enough execution in migrating to the new ERP system and following also the new analytics systems, especially in the sub-analytics cloud.

We are very good in HR-related stuff. So payroll is very robust and execution rate is also fine. And we see the first movement also in our customer experience area. Even we have been dropping revenues, you may remember one year ago internally, but now we have a certain bottom and floor reached. And out of this, we see now first growth coming again. So we really have an ERP issue currently. Managed services, everything around the cloud additional application services is growing. Not very exciting because there is a high competition in the market. So a lot of customers trying to cut costs, but it's very stable and it's growing organically.

Thank you. So last question, how about [indiscernible] power and further M&A news?

Well, we are not ending here, but I'm not allowed to give you more insights. But you can be sure that Michael and myself, we announced, I think it was in October '24, the first time. So that's now 16 months ago that we're starting to execute an M&A strategy. And of course, M&A always needs some time because we are not using the official market projects in general because that's normally not exactly the [ fit ] we would like to have into our portfolio. So we have dedicated discussions with dedicated owners of businesses since 16 months. And now we are very happy to get apsolut on board, and we have more ideas, and you can be sure that you will get further news also soon.

Okay. Thank you. I don't see any further questions in the chat. So thank you, everybody, for joining. And yes, just be aware of news if they are coming. Thank you, Stefan, for all the details and the explanations, and I hand over to you for the last words.

Thank you, Nicole. Thank you to you. Thank you to all here in the room. Thank you that you're joining us, spending time with us. Hopefully, you get a little bit excited that we are on the right track, even it is a very difficult situation because we are very much industry related and the German-speaking area is not in an easy situation right now. Thank you. Have a nice day.

Welcome to our call today. This morning, we've released our annual report as well as the sustainability report. I hope that you all received it and already had a first look at it. So what is positive? We confirmed the numbers that we had already announced preliminary numbers on the 21st of November. We've confirmed our outlook.

And what else did we confirm that we are very well established in the market. So revenue grew -- well, declined slightly by 2%, but the advantage is that was in a very challenging environment. And what is even more positive is that with the cloud subscription business and the commissions, we are now nearly compensating the reduction of the licenses business.

What else is remarkable? Very solid dividend policy. So payout ratio, 52% is suggested to the Annual General Meeting. We've improved our ESG KPIs, so women in leadership and CO2 emissions. And we are a very strong cash-generating company. But if you are now interested in more, which means our numbers, figures, the details and especially the outlook that we've got, why are we strong and why are we confident that we are very well established in the market.

Michael Zitz, our CEO; and Stefan Land, our CFO, will give you some more insights.

So now let me welcome Michael Zitz. Thank you.

Nicole, thank you. Ladies and gentlemen, welcome to our presentation. We divided the presentation in 2 parts. First, I will start with a business overview for those of you who don't know us so well. And the second part will be done by my colleague, Stefan Land, our CFO, with a deep dive to our figures of our last fiscal year.

But now let's start with who we are. All for One is an international IT consulting and service provider with regard to the SAP ERP transformation into the cloud. We are the #1 SAP partner in Middle and Eastern Europe, and we are the #1 in doing conversions. That means we have done the most transformation of customers from the old ERP version, ERP ECC to the new one to the cloud, to the S/4HANA RISE and GROW offering of SAP. We are proud of our more than 4,000 customers. We have approximately 2,700 employees in 41 locations and in 8 countries.

Our main countries are Austria, Germany, Switzerland and Poland, and we have 2 nearshore centers in Egypt and Turkey. In the last fiscal year, we did a revenue of EUR 504 million, but the most important KPI of the figures of the last fiscal year is our share of the recurring revenues. More than 53% of our revenue is recurring, and there you will find cloud subscription, maintenance, application services, business services, but later on, more to the figures from my colleague, Stefan. We are an industry specialist.

We are focused on our key industries, for instance, manufacturing, life science or we also fit with the aerospace and defense industry, which is really important for us for the future. We deliver our offering globally, and therefore, we are a member and founding member of the United VARs network. That network contains more than 10,000 consultants worldwide. And so, we are able to do our rollout and to deliver our services globally with our partners around the globe. We deliver end-to-end. And that means that we did our transformation successfully in the last 2 to 3 years.

We transformed our business from a German-speaking system house license reseller to an international IT consulting and service provider. That means we deliver the software, the cloud software, the project, the services and also sovereign managed cloud service offering to our customers. And as I mentioned before in the previous slide, we deliver our offering around the globe with our United VARs network.

Let's look a little bit deeper in our portfolio. 95% or more than 90% of our portfolio is SAP related. And therefore, we are very proud of this offering because SAP is the leading provider of business software in our markets, and we have a strong footprint to this portfolio. And we adapt this portfolio with our industry competency, with artificial intelligence and with services around this portfolio.

The core of this portfolio is the ERP, the most important solution for every company in the world. And SAP has a strong focus to deliver cloud ERP in the private or public cloud, and we build with our offering around this core, this end-to-end processes, which helps our customers to become more competitive in their markets.

Our main markets are the German-speaking region, Austria, Switzerland and Germany and Poland. And as you see on this slide, there are many figures. This market is the most important and the market with the highest potential in Europe. And so there are -- one figure is very essential for us, the EUR 50 billion potential for SAP cloud software in the next years.

But now let's look a little bit deeper on a typical customer example, a customer who decides to switch their on-prem software landscape to a cloud landscape. At the beginning, you see the on-premise revenue stream with maintenance, some licenses and consulting. And with the orange curve, we start the transformation project. We deliver consulting. We deliver projects which help our customers to transform from the old version, ECC to the new version S/4HANA in the private cloud or in the public cloud.

And with this transformation, we built the foundation for our customer and for us to grow. And we did more than 180 projects in the last years where we helped customers to transform from the old version to the new version. And the most important point for us is what we see is that we gain more revenue in the cloud environment. On this foundation, on this private and public cloud foundation, we build our services, our own IP, our products, security and compliance solution and also the lines of business like Customer Experience with CRM or with shop solutions, analytics solutions or HR solutions as an example.

But now let's look to GEBHARDT Fördertechnik. A typical customer for us in the upper mid-market segment, we have a long-lasting relationship to GEBHARDT, and we transformed GEBHARDT from the old version from the on-premise landscape to the new version to the new technology platform into the cloud with the RISE with SAP. On this foundation, we build our services step by step to help our customers to become more competitive.

As an example, we build services to help GEBHARDT to become more or to get in higher proximity to their clients as an example. But the most important point is the service offering after the go-live with the new version. Because with this service offering, we help our customers to handle updates to handle innovations, which they automatically get from the cloud offering of SAP. Every customer gets new features, new updates every 3 to 6 months.

And our customers need a trusted adviser, need a partner to handle these challenges to get out more of the solution, which they subscribe every month with SAP and All for One. And that means for us that we gain more recurring revenues with our services. We get more margins out of these services, and we build a higher proximity to our customers. We get deeper and deeper in every process, and that is a strong differentiation to the competitors in our market.

SAP has a strong, clear core strategy. That means industry-specific requirements are built by partners. And therefore, we offer our own products, our own IP to our customers, and we do that with an own brand, with an own company, it's called Blue-Zone. And with this offering, we provide our solutions not only to our customers, also to other partners for their customers on the SAP store and also with our partner network, which we developed in the last month. Really important is to say that every solution is built on a modern platform on the SAP Business Technology Platform, and it's a public cloud solution and it's ready for growth.

To sum up, we see a lot of tailwinds in the market for us. First of all, it's clear SAP brings the whole portfolio from the on-premise technology into the cloud. Second, every customer has to digitize their offering to become or to remain competitive in their markets. And the third one really special for our offering in context of the ERP offering because with end of 2027, the maintenance of the old version of the SAP ECC will end. The customer will have the option to continue for 3 years.

But there is a little pressure on the architectural landscape of our customers. And so we will help our customers to go safe and quickly to this new version to the new S/4HANA offering of SAP. And that is the reason why we see a massive opportunity All for One because we have a unique position with our portfolio, with our end-to-end offering and with our industry competence. And the most important point, we have the right portfolio for the upper mid-market, and we can deliver this portfolio globally with our more than 10,000 consultants in our United VARs network. We are very positive.

And we look forward with confidence because in the last 24 months, we fulfilled our own transformation, as I mentioned at the beginning, from the system house from the license reseller to an international cloud IT consulting and service provider. And our foundation is our scalable matrix organization that we have the clear plan for the upcoming years that we will conquer new markets in the first step in Europe, that we will build new nearshore and offshore centers to fulfill the requirements of the upper mid-market.

Second, we will develop new products. We will close the white spaces in the industry to offer products, these products to our customers and to our partner for their customers. And the third one, the most important one is our service offering that we remain and become the trusted adviser for our customers to help them to stay and to remain competitive in their market.

But now I will hand over to Stefan, and we will get a deep dive into the figures of the last fiscal year. Thank you.

Michael, thank you. Ladies and gentlemen, let's have a look or a deep dive, as mentioned by Michael, into the financials of the last business year. Let's start with the key results at first. We are in a temporary phase. This means that we have to convert our on-premise services in the past to the new cloud world.

As mentioned by Michael, there is a lot to do. There's a lot of opportunity. There's a lot of tailwind, which will help us to come into that services. However, as we all know, there is a lot of uncertainty on the geopolitical situation in the world. So a lot of customers do not execute projects in time. They try to delay, they try to save money in order to save their own business.

And as you know, a lot of industry relates also to the German market, especially in the automotive sector, machinery manufacturers and the industries around. However, in total, we achieved EUR 504 million in revenues, which was a decline of roughly 1.5%, 2%, but EBIT dropped by another 24% to EUR 26 million in the total. This was also driven by the situation that SAP decided to stop the offering of Customer Experience portfolio separately and including it into the business suite of the future.

Let's move into the details of the revenues. As you can see on that slide on the left-hand side, the cloud services improved by another 4% to EUR 148 million. So this is a very stable and robust growth even though the uncertainty in the markets are quite big. Software and support declined by 7%. License thereof by minus 20% and support contracts dropped by another 3% to EUR 117 million. Consulting was more or less flat, minus 1%. If we deduct the impact of the Customer Experience decision of SAP, Consulting was even growing by another 1% in the last fiscal year.

If we have a moment and looking into our figures on a segment base, then you have the segment CORE on that slide. So revenues dropped mainly to the decrease of the revenues in license and in support contracts. And margin was following because margin was dropping by 1.1% to 4.9%. So within that figure, there is a lot of shift coming from former on-premise services in the old SAP world, we call it ECC system and now moving forward with the tailwind into the cloud to the S/4HANA portfolio. However, in the total, the margin dropped by 1.1%. But if you offset the onetime expenses of EUR 3.3 million coming from severance payments, then margin was more or less between 5% and 6% in the last year.

In the segment LOB, we had a very strong decrease of revenues relating to the Customer Experience business. If we deduct this phase, all the other units were growing quite slightly 1% or 2% in the analytics area and also in our HR business. But in the total, revenues dropped from 76% to 73% and margin was be highly impacted negatively. So margin dropped from 9.3% till 5.8%. In the total, the profit and loss scheme, you find on the left-hand side, EBIT was been influenced by 2 extraordinary impacts.

Number one is the severance payments by EUR 3.3 million in the personnel expenses. And number two is the EBIT or the impairment coming from the loss of the Customer Experience business. So we had to deduct this value by EUR 2 million. So in total, the EBIT has been influenced extraordinary by another EUR 5.3 million. That's the reason why EBIT dropped by 34% to EUR 18.9 million.

If you see our operating EBIT development, so the EBIT before the M&A effects, then you have to add this impairment on top of the EUR 18.9 million again, you have to add the acquisition-related depreciations, the amortizations and another M&A impacted expenses of EUR 0.1 million. In a total, you arrive at EUR 26 million, which is a reduction of 24% versus the last fiscal year.

Free cash flow is showing the robustness of this business. Even though revenues did not grow, EBIT have been down by 24%, respectively, 36%. Cash flow from operations just reduced slightly by 3% to EUR 39.7 million. On top of this, you can see the development of the free cash flow. So free cash flow has been very good because we did a very good cash management, a very good working capital management on our performance. So in the total, free cash flow only reduced by 11% to EUR 23 -- EUR 20.3 million in the last fiscal year.

We have a very solid balance sheet. So cash position has been up coming from EUR 62.6 million till EUR 67.3 million, even though we did the treasury stock improvement of another EUR 4.6 million. So if you add this, we have been above EUR 70 million last year. So net debt reduced by EUR 12 million roughly to EUR 43 million. Equity ratio due to a lower sum of the total assets and liabilities improved from 32% to 33%.

Some KPIs on employees. So we had a total of 2,653 employees in an average last year. Thereof, already 26% are provided by Poland, Turkey and Egypt. Our employee retention have been very stable on 90.4% and health index improved slightly to 96.8%.

Let's have a look on the long-term earnings and dividend. And you see the red line of the earnings are quite stable and robust. However, it's very clear that versus last year, it declined from EUR 3.70 per share down to EUR 2.32 in the last fiscal year. We will continue with a very robust dividend policy. This means we were proposing to the Annual Shareholder Meeting EUR 1.20 as a dividend to the shareholders.

Let's finally come to our outlook. As mentioned on November 21, we see a mixed revenue development this year because we will be influenced by the transformation to the cloud. This will hide our top line. But on a midterm and long-term perspective, it will support our margin on the earnings. So we expect on the EBIT margin before M&A effects, 5.5% till 6.5%. Revenues should be around EUR 500 million and EUR 530 million in '25, '26.

On the midterm targets, we see a very good organic growth in the mid-single percentage range again. After this transformation, we will come back and showing growth also organically. And organically, we are prepared to grow the business with additional acquisitions. So we want to execute further markets and further portfolio elements. Therefore, we raised already fresh money in October of a total amount of net EUR 49 million in order to be prepared for M&A execution. Profitability shall grow. We see the opportunity to continue a growth sustainable on our operating margin year-by-year. So this is it from our side from the management perspective.

We would love to get some feedback from you. So the Q&A is open. Please use the chat, which is available to you, and we would be very happy, Michael and myself and Nicole to come back on your questions.

Okay. Thank you. [Operator Instructions] I would start with the first question. So first of all, Michael, you have spoken about the cloud services. Could you give us a bit more of a feel what that would mean in addition to what you already explained basically, what it means also maybe then for the business?

Thank you. Yes. Services, cloud technology is a direct relationship because it is a cornerstone in a modern cloud offering in a modern cloud service portfolio. Because in the old world, customer had problems and they raised the service ticket. And in 3 years, All for One, we came and solved this ticket. And that's not possible in a new and modern world because customers in the cloud receive every 3 months, 6 months, new features, new innovations, new AI-related processes and so on.

And therefore, the customers need a trusted adviser, need a partner, which help them to implement these new features, these new processes, and that's our business. And we are very firm to do this business because we started really early with public cloud solutions. It's many years ago. And therefore, we have a lot of references. And so we can do that in a proper way for our customers. And with the first results, we see that is the offering which our customers wants to get and help them to do their business effectively and to become more competitive in their markets.

Okay. Stefan, you've been talking about cash flow. What can we expect for the future?

Well, as we have been shown the last few years, so cash flow is, of course, on one hand, following the profitability, so the EBIT ratio also in the future. However, there is a big difference between growth in the on-premise world of the past and growth in the future in the cloud world. So we will get a lot of recurring services into our business, which would support our cash flow also on the operating side. So in a total, our DSO will decline step by step. That's the assumption. So we will see a very strong positive cash flow development, which will follow the EBIT ratio step by step.

Well, relating to the EBIT ratio, I've got the next question. What midterm margin in percent do you expect?

Well, -- of course, we cannot -- we are not disclosing it right now. Why? It's, from our perspective, a very uncertain geopolitical situation. So we cannot really trust on the decision-makers on the customer side and all of our leads. So we have a very strong pipeline. We have a huge data set in our customer experience and our customer relationship system, but the execution rate is currently quite tricky and very, let's say, uncertain because there is a lot of problems out in the market, relating to the industries we are servicing.

And it's not very clear what will be executed in which quarter and in which months. So of course, customers have to take care about their own business at first. On the other hand, they know that digitalization provides efficiency and opportunity to save the business and to grow the business and get it more competitive. So that's the reason why we are currently very, let's say, conservative on our outlook. So we have to be very careful. But as soon as the situation will be more clear and the foggy situation will be disappearing step by step, then we come out with further guidance on the midterm margins.

Okay. Next question. How much AI does change your offering? Will AI have a positive or negative impact on your profitability? So maybe 2 questions. So one for you, maybe how it changed our offering and then a question about profitability.

Yes. I will start with the business impact. I think, yes, AI is there. And yes, AI will help us and will help our customers to become more effective, to come more competitive, to can better act in the market. But first of all, I think we have to divide the impact of AI.

And from our point of view, there are 3 directions. First, how can we use AI internally? The second, how will AI help us to develop more effective in our development department. And the third direction is how can AI help in the processes which we deliver to our customers to help our customers to become more competitive. Yes. And in each direction, AI influence our business positively. And we are on the right way. We are in the right position to get out more every day with AI for us and for our customers.

Well, currently, AI costs money for All for One, and this means margin because we are investing heavily into the usage of AI within internal processes and systems. So by the way, we are implementing ServiceNow, for instance, and using the AI technology in order to absorb all the knowledge of the past 20 years of ticketing in order to get AI services done automatically in the future. So this will provide efficiency to our customers and to ourselves.

And we have more internal projects finding out what could be done in order to use AI or in the order processing, for instance, step by step. This is not that easy as everyone is telling us, of course, but it is the future. Very clear. It will provide efficiency into our business, into our process, into our services and much more quality as well. So quality will improve on top of it.

So -- and as what Michael said, if the top line will be supported as well because customers want to use AI in order to get their own efficiency up, then it will provide additional margin, additional recurring opportunities also to our business model. So we are very positive on that. However, a lot of AI is driven by the big vendors providing, for instance, ERP software by SAP or other vendors to the customer. For us, as an IT service company, it's an opportunity to grow business jointly with the customer.

Okay. Next question. You mentioned that you are ready to launch M&A activities. Does it mean -- sorry, does this mean that you have targets in mind? Could you give us more information about these targets, estimated turnover reach and efficiency gains?

Yes. Yes, I will start. Yes, we have targets in mind. And no, we can't tell any -- can tell you any insights or can say any insights on that topic, but we are on the right way, and we follow our path. And in 2026, it's clear for us that we will do these next steps, as I mentioned in my part of the presentation with new markets in Europe. I think it's no secret if I say U.K., Nordics are potential SAP markets in Europe.

And I think it's no secret when I say the South American region and the Asian region are potential markets for offshore center. And that is our way because we want to serve the upper mid-market and that are the requirements that -- for this customer segment and market segment, yes, and we will do everything to fulfill our plans in the next weeks and months. And hopefully, we can say more in the next weeks and months.

So just a question to the regime. Any more questions there? Yes. Okay. Here we go. What are customers doing who continue to postpone their transformation at SAP? So to S/4HANA, I assume. We have been seeing this story for many years now with repeated delays, even so SAP itself and companies such as SAP are benefiting from the development. Have potential contracts also been lost to competitors? One keeps asking why All for One of all companies is not benefiting.

Yes. It's a bit -- we will see the story doesn't end at the moment because the geopolitical situation mentioned by Stefan, are not changing at the moment, and we have no influence on this situation. And we know with 2027, there is the end for the major part of our customers of the ERP maintenance, but there is the option to continue with more money with a higher maintenance fee to continue this contract to 2030.

And I think that's the business decision of our customers to postpone projects to -- or don't invest in any old system or in the IT, and that's the situation by a major part of our customers. And so we cannot influence this topic, but we do everything to support our top line, to support our bottom line with other services, as I presented in my part of the presentation with the service approach; and second, also to conquer new markets to stable our business for the future. And that's the situation right now. But I think we handle this situation in the best way for All for One. And looking forward, I see a huge opportunity for us together with our customers to accelerate in the next years with this business.

Well, maybe some additions to that is, yes, you don't see a top line growth currently. Within our systematic of revenues, within our services, there is a dramatic change within the last 1.5 years. However, it's compensating one to the other one. And if you speak about that other partners in the market are growing, then have also a look on the margins. So we are margin-driven business currently. So we would like to get more efficiency, more recurrings and more value into our services.

And we are not hitting for growth only just in order to get revenues and no margin. So we are pretty sure customer by customer that we will finally end into a very productive and very efficient business model in the future. And I know a lot of customers already and CFOs talking to me and we are talking to them, they are all sitting in the situation that they would like to start, but they delay or they start in small projects because they have time.

And on the other hand, they have a lot of problems relating to their own business. But on the feedback we received already also with our new smart services, I think around 500 customers joined us in the first sessions, we see there is a big potential on these customers. So we are not losing the customers to competitors. The thing is that we are changing revenue streams right away.

And in a total, it's only compensated. But this will end up sooner or later. And if the uncertainty in the market will, let's say, partly disappear. It will probably not disappear at all, but step by step, it will hopefully get better. Then we will see that the execution rate is coming back and then we come into organic growth scenarios as well.

Thank you. I think no more questions in the chat. So I think it was a good, positive close up. So I wish you all Merry Christmas, relaxing days with your beloved ones, some time to just recover. Happy New Year. Hopefully, some good news then in the new year. And I now hand over to Stefan and Michael for the last words.

Thank you.

Thank you. I just follow your words. Thank you for joining us today. I'm handing over finally to my colleagues.

Yes. Thank you very much. Happy holidays, and see you next year. Thank you. Bye-bye.