SaaS & subscriptions revenues exceed license sales for the first time
Sliedrecht, The Netherlands, 21st August 2013
First Half Year results
• Total revenue increased by 4.1% to €240.3 million (H1 2012: €230.8 million)
• SaaS & subscriptions revenues grew 43.2% from €22.7 million to €32.5 million
• Cloud applications specialist FinancialForce.com grew strongly with monthly revenue
run rate up by 80% (compared with June 2012)
• EBITDA rose by 9.7% to €40.6 million (H1 2012: €37.0 million)
• Excluding FinancialForce.com, EBITDA increased 13.2% to €46.3 million
(H1 2012: €40.9 million)
• Net profit before goodwill increased 21.6% to €18.6 million (H1 2012: €15.3 million)

Revenue
UNIT4, the global leader in software that supports business change, today released interim resultsfor 2013. The company saw a strong increase in demand for its Cloud based solutions with growthof more than 40% in SaaS and subscriptions revenues, and a particularly strong performance by
FinancialForce.com. In response to the robust upward trend of SaaS and subscriptions licensing,UNIT4 is focusing heavily on further enhancement and sales of its cloud solutions. This resulted in adecline of 10% in traditional license (product) revenues but significant growth in SaaS and
subscriptions revenues, which are up 43.2% to €32.5 million in H1 2013 (H1 2012: €22.7 million).
The annual run rate of SaaS and subscriptions grew from €46.8 million in June 2012 to €67.2 millionin June 2013, an increase of €20.4 million or 43.5%.
Despite a decline in product (traditional license) revenue, contract revenue (maintenance) increasedby 2.1% to €97.5 million. Total recurring revenue (Contracts and SaaS and subscriptions) wassignificant at €130.0 million, representing 54% of total revenues (H1 2012: 51%).
“It is very positive news that SaaS and subscriptions revenue in the first half year has exceeded license revenue, even without us being able to recognize SaaS revenue from the recent large government deals in the UK yet,” said Edwin van Leeuwen, CFO, UNIT4. “This change of focus towards cloud solutions makes the profitability of UNIT4 more predictable and less dependent on license sales, which are less predictable. Our EBITDA has increased by 10%, even with lower
traditional license sales, driven by the substantial growth in cloud based solutions.”
Revenue from ‘Services and others’ increased by 1.7% to €77.9 million (H1 2012: €76.6 million).
Total revenue increased by 4.1% with most countries showing organic growth.
Only Spain and
Poland reported a decrease due to reorganizations. In Germany, revenue increased by 17% due to revenue from a large recurring contract in the governmental market in H2 2012.

Operating margin
EBITDA excluding FinancialForce.com increased by 13.2% to €46.3 million (H1 2012: €40.9 million) representing a margin increase of 1.9 pts to 19.9% (H1 2012: 18.0%).
Including the extra investment in FinancialForce.com, EBITDA rose 9.7% to €40.6million (H1 2012: €37.0 million).
Reorganization costs are included in the EBITDA figure, amounting to €6.1 million (H1 2012: €2.8 million).
H1 2013 also saw UNIT4 convert the majority of its Benelux pension plans from a defined benefit into a to defined contribution classification (IAS 19). This resulted in the release of an existing provision which together with some non-recurring costs resulted in a combined positive effect of €3.3 million.

Excluding the reorganization costs and excluding the non-recurring items the EBITDA would have grown from €39.8 million in H1 2012 to €43.4 million in H1 2013, which is an increase of 9%.
Excluding FinancialForce.com this EBITDA growth would have been 12% compared with the first half year 2012.


The results presentation and webcast for press and analysts will take place on Thursday 22nd August
2013 at 10.00 CET. Register for the live webcast via:
http://www.unit4.com/investors/financialinformation

Outlook
Based on current estimates, pipeline and strong financial performance in July, UNIT4 management continues to be confident about meeting its full year target of achieving single digit growth in revenue with an EBITDA (without FinancialForce.com and excluding reorganization costs) in the range of €105 - €115 million. Total EBITDA including investments in FinancialForce.com but
excluding reorganizations is expected to be in the range of €95 - €105 million.