Interim Report January - March 2021 - Seite 2

Continued strong customer base

The customer base is intact and increasing, however, demand for new projects continues to be prudent. Regulations and lockdowns in the company's main markets shift decision-making processes among customers. We are steadily increasing our delivery capacity and expanding our offering, and this strengthens the margin as well as our partnership with customers.

The international framework agreements are developing in line with our plan and confirm our unique position to deliver, operate and develop complex global digital transformation projects.

Expansion into Europe's largest Digital Signage market

The acquisition of German NORDLAND systems GmbH in early March follows the Group's strategy to drive consolidation and growth in the European market. Nordland is a leading player in Europe's single largest Digital Signage market. The company shows good profitability, stable and increasing SaaS revenues and an attractive customer base. Integration has begun and we focus on new sales acquisition, an expanded offering, and knowledge transfer of the product and service portfolio.

Scalable and efficient organization delivers

The global function-based organisation, that was introduced a year ago, has led to increased harmonisation of working methods, broadening of product and service offerings, as well as strengthening operational capabilities and more efficient investments. The economies of scale increase our delivery capability, creating added value for customers. At the same time, efficient investments lead to increased profitability, which provides us room for continued investments in our offering.

An example of new functionality for our products and service offerings is the investment into a Digital-Out-Of-Home application that was launched during the quarter. We will conduct frequent launches of new functionality during the year to secure and strengthen our competitiveness. Our good financial position and the high share of SaaS revenues create the conditions for continued strategic investments.

Our employees still work largely from home. Through good collaboration, great commitment, efficient systems and processes, the entire business remains in full operational mode.

Outlook

As described in the year-end report for 2020, we expect a gradual normalization of demand in 2021. The first quarter has shown that decision-making processes are still longer than normal, however, we see clear indicators that demand is returning. We participate in several major international tenders and believe that the ongoing digitalization in society will accelerate once restrictions are removed. We maintain our positive view of a growing recovery in project sales during the second half of the year.