NEXUS Quarterly Statement-Q3-2021.pdf

QUARTERLY STATEMENT

01ST JANUARY TO 30TH OF SEPTEMBER 2021

__ Financial Highlights for the 3rd Quarter 2021 and 2020

	30/09/2021	30/09/2020	Change
Sales and operating result	KEUR	KEUR	(in %)
Sales	137,223	115,474	18.8
Segment revenues Healthcare Software (unconsolidated)	132,002	109,106	21.0
Segment revenues Healthcare Service (unconsolidated)	9,966	9,409	5.9
Domestic sales	73,955	63,463	16.5
Sales in foreign countries	63,268	52,011	21.6
EBITDA	27,605	24,762	11.5
EBITA	18,639	15,685	18.8
EBIT	15,140	12,818	18.1
EBT	14,326	12,543	14.2
Consolidated net income	11,110	9,024	23.1
Cash flow from operating activities	24,727	26,882	-8.0
Earnings per share (undiluted/diluted) in EUR	0.69	0.56	23.2
Ongoing development costs and depreciations
Capitalization of software developments	2,015	2,204	-8.6
Total depreciation	12,465	11,944	4.4
Acquisition-related depreciation from purchase price allocation	3,499	2,867	22.0
Assets and equity capital
Non-current assets	181,161	159,0211)	13.9
Current assets	68,342	64,1411)	6.5
Liquid assets (incl. finance assets)	23,742	28,1771)	-15.7
Equity capital	132,137	123,5831)	6.9
Share price (closing price, Xetra, in EUR)	71.50	46.00	55.4
Employees (quarterly average)	1,445	1,302	11.0

¹⁾ Key date 31/12/2020

As rounded figures are used in this report, it is possible that the totals and calculated percentage figures may vary slightly.

1 Nexus AG / Quarterly Statement Q3 2021 - Financial-Highlights

__ Letter to our Shareholders

Dear Shareholders,

The COVID-19 pandemic and related shifts in healthcare priorities have resulted in numerous changes. Many work processes have become more digital, and the necessity and advantages of digitization are becoming increasingly clear. Digitization of healthcare has become a significant trend, which will accelerate significantly in the coming months.

This can be seen in the numerous state-sponsoreddigitization programs that were launched in Germany (Hospital Future Act), France, the Netherlands and other countries within a short time. Very extensive programs were launched in this area and provided with considerable resources. The reason is not least the recognition that the pandemic is also a crisis of medical data management and medical statistics.

We are convinced that these programs will improve medical processes and accelerate communication between those providing treatment as well as with patients. In recent months, we have strongly supported our customers in preparing the application forms for the investment programs and will be processing the resulting tenders in the coming weeks and months.

In this environment, it was not a matter of course to deal with matters successfully in the current period. It also put substantial demands on our employees, who have made every effort to prepare the new programs together with our customers under pandemic conditions as well as to continue to provide optimal service for the existing installations. We are therefore proud that the NEXUS team faced these challenges energetically and can show consistently strong figures for the first nine months of 2021.

Results

We were again able to show a very strong increase in sales and earnings and thus successfully continue our two decades of continuous growth in sales and profits.

Our sales increased by approx. 18.8% to EUR 137.22 million in the first nine months compared to the previous year. Our earnings before interest and income taxes (EBIT) increased by approx. 18.1% to EUR 15.14 million.

With an EBITDA of approx. KEUR 27,605 and an operating cash flow of KEUR 24,727, we were once again able to confirm the soundness of our earnings development. Our EBITDA margin remained at 20,1%, a value that can be assessed very positively against the background of the strong sales development and the high integration costs. The result per share increased by 23.2 % from EUR 0.56 (9M 2020) to EUR 0.69.

__ Dr. Ingo Behrendt, Chief Executive Officer (CEO)

The figures include the results of RVC Medical IT Holding B.V. acquired last year. For the first time, the companies ITR Software GmbH, ANT- Informatik AG and DC-Systeme Informatik GmbH integrated in 2021 were consolidated. Without these consolidations, the growth of the NEXUS Group (organic) would have been approx. 10.0%. EBIT changed only slightly as a result of the consolidation of the companies.

For us and our customers, the long-lastingexceptional period of the pandemic was a particular challenge. We are therefore very pleased that we have been able to cope well with this time with our customers and present such a convincing result at the same time.

2010 - 2021 __ Group Sales (9 months) in KEUR

160.000

140.000

18.8%

120.000

												8.7%
100.000										11.2%	10.7%
80.000									11.6%
								10.5%
60.000							24.1%
					7.9%
					19.2%
40.000			19.5%	14.0%
20.000
0
32,160	38,436	43,813	52,237	56,351	69,949	77,308	86,282	95,943	106,196	115,474	137,223
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021

Letter to our Shareholders - Nexus AG / Quarterly Statement Q3 2021

2

Products

The focus of our activities in 2021 is entirely on the implementation of innovations. We are convinced that the key success factor in our dynamically developing market lies in innovations that enable users to benefit from tangible work facilitation and positive user experiences (UX). We are currently working intensively on this.

We are about to launch our new "NEXUS / ADVANCED REPORTING" diagnostic solution on the market. The module supports the creation of findings texts and diagnoses based on image analyses, predefined terminologies and experience (AI). As a result, findings can be produced significantly faster and in higher quality. We have already successfully placed "NEXUS / DeepView" on the market, i.e., hospital-wide image and document archiving, which enables a complete view of patient records. The same applies to the new development "NEXUS / PORTAL", which facilitates communication between patients, referring physicians and hospitals. We are pleased to have accelerated these product innovations significantly this quarter.

Market

In terms of sales, we focused on processing national funding programs in the first nine months. In Germany in particular, we supported our customers in submitting applications and helped them to meet the tight deadlines. The upcoming tenders will now have to be processed in the coming weeks and months. Irrespective of these programs, we were able to win a number of important new projects in 2021, most recently the "Virtual Hospital NRW" project, a large project that connects many hospitals in North Rhine-Westphalia.

It is obvious that the market trusts our products and our company. This trend is being reinforced by the many M&A activities of our competitors. This is a chance for us; we can offer the customers of the acquired companies a modern system and thus facilitate the replacement decision.

Acquisitions

In 2021, we also strengthened our technological and human resources by acquiring small, highly specialized teams. We are currently focusing on companies with special know-how,with which we can jointly tap new market potential and provide synergies in the face of technological and sales challenges. In the first nine months, we were able to acquire a total of five companies and part of another company (asset deal).

Most recently, we acquired a small company in Ticino (SINAPSI Sagl), which strengthens our market position in the hospitals in Ticino thanks to

Highlights Q3 2021 - Company development

• Strong sales increase in the third quarter +18,8%
• National e-health projects in the tender phase
• Large tenders won again
• Strong increase in turnover in foreign markets

one of its developments. The asset deal in the Netherlands, which we implemented together with Dedalus, also includes a team that focuses on the development of drug and pharmacy software.

We want to continue this form of business acquisition to acquire know-how, technologies and market access. This is a strategy that further strengthens our product portfolio and our customer loyalty.

OUTLOOK: BE PREPARED!

The year 2021 has been a challenging but successful one so far. With a 18,8 % increase in sales and a 18,8 % increase in EBITA, we have demonstrated strong continuation of our two decades of continuous growth. The large projects we are currently winning and implementing make us confident that 2021 and 2022 will again be successful years.

At the moment, however, it is also becoming apparent that we still have to expect uncertainties and react quickly to new developments. The pandemic development can again restrict the activities of hospitals and our ability to work.

Nevertheless, it is important to be prepared to actively exploit the opportunities provided by the Hospital Future Act (KHZG) and other national funding programs and to gain market shares. Especially our new developments provide great potential for further improving our product and market position.

The NEXUS team continues to look forward to these great challenges.

Warm regards,

Dr. Ingo Behrendt

Chief Executive Officer

2010 - 2021 __ EBIT (9 months) in KEUR

16.000
14.000													18.1%
12.000											13.7%	14.6%
10.000
									12.1%
8.000								19.4%	15.9%
6.000
						23.5%
					19.3%	8.0%
4.000
			18.3%
			44.5%
2.000
0
2,331	3,369	3,985	4,754	5,134	6,341	7,571	8,772	9,836	11,184	12,818	15,140
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021

3 Nexus AG / Quarterly Statement Q3 2021 - Letter to our Shareholders

__ Interim Annual Report of Nexus AG

Report about the profit, financial and

asset situation

NEXUS Group sales increased from KEUR 115,474 to KEUR 137,223 (+18.8%) in the first nine months of the year 2021. The stable, positive sales development of NEXUS Group of recent years could be continued with that.

In the Healthcare Service Division, sales (unconsolidated) of KEUR 9,966 were achieved after KEUR 9,409 (9M-2020), i.e., approx. 5.9% more than in the previous year. This includes sales of KEUR 4,695 (previous year: KEUR 2,976) with the Healthcare Software segment. On the other hand, sales (unconsolidated) increased from KEUR 109,106 (9M-2020) to KEUR 132,002 (+21.0%) in the Healthcare Software Division. This includes sales of KEUR 50 (previous year: KEUR 65) with the Healthcare Service segment. The values include the figures of RVC Medical IT Holding B.V., Amersfoort (Netherland), DC-Systeme Informatik GmbH, Heiligenhaus (Germany), ANT-Informatik AG, Zürich (Switzerland), which were consolidated for the first time and contributed to about 7.5% of the growth of the NEXUS Group (KEUR 10,262).

ITR Software GmbH, Lindenberg im Allgäu (Germany), osoTec GmbH, Affoltern am Albis (Switzerland) and SINAPSI Sagl, Lugano (Switzerland)

2,302). This includes KEUR 2,015 ((9M-2020): KEUR 2,204) for capitalizing software developments.

The balance sheet total increased from KEUR 223,162 to KEUR 249,503 compared to 31 December 2020 (11.8%). Intangible assets, goodwill and balanced-out deferred taxes add up to a total of KEUR 152,578 following previously KEUR 134,648 (31 December 2020). Receivables from customers amount to KEUR 29,932 following KEUR 27,550 on 31 December 2020.

EMPLOYEES

NEXUS Group employed an average of 1,445 people in the first nine months (9M 2020: 1,302 employees).

Number of employees (9 months)

11.0% in comparison to the previous year

1,600

1,400
11.0%
	0.1%
1,200	14.6%

have not yet had a significant impact on the revenue and the result of the NEXUS Group.

1,000

18.2%

We respect to the regional development of sales, we were able to increase sales in Germany by 16.5% to KEUR 73,955 ((9M-2020): KEUR 63,463). In international business, we achieved sales of KEUR 63,268 in the first nine months of the year 2021 compared to KEUR 52,011 in the previous year (+21.6%). Sales in Switzerland (+13.4%), the Netherlands (+39.1%), Polen (48.9%), France (+5.4%) and Austria (+14.2%) were very strong.

Consolidated earnings before income interest and taxes (EBIT) developed very positively. They improved by 18.1% to KEUR 15,140 ((9M-2020): KEUR 12,818). RVC Medical IT Holding B.V., Amersfoort, consolidated for the first time, had no significant impact on the EBIT development in the first nine months of the year 2021. A value of KEUR 18,639 was achieved in EBITA and consequently was 18.8% over the value of previous year ((9M-2020): KEUR 15,685). EBITDA reached KEUR 27,605 in the first nine months of the year 2021 ((9M-2020): KEUR 24,762) and consequently was 11.5% higher than in the previous year. The non- recurring costs for the integration of the new companies in the first nine months of the year 2021 amounted to approx. KEUR 1,253.

Cash flow from operating activities amounted to KEUR 24,727 (9M 2020: KEUR 26,882) in the first nine months of the year 2021, still at a high level, but 9.0% below the prior-year figure. This is due to receivables from major projects for which longer payment terms were agreed.

The consolidated surplus increased by 23.1% and amounted to KEUR 11,110 in the first nine months of the year 2021 following KEUR 9,024 (9M-2020). There is a slight decrease in the tax rate there. The undiluted result per share amounted to EUR 0.69 (previous year: EUR 0.56) (diluted: EUR 0.69; previous year: EUR 0.56).

Investments in tangible and intangible assets were made in the amount of KEUR 4,113 in the first nine months of the year 2021 ((9M-2020): KEUR

800

600

400

200

0

960	1,135	1,301	1,302	1,445
2017	2018	2019	2020	2021

EBITDA (9 months) in KEUR

• 11.5% in comparison to the previous year
  30,000

11.5%

25,000

6.1%

24.6%

20,000

16.3%

15,000

10,000

5,000

0

16,101	18,725	23,332	24,762	27,605
2017	2018	2019	2020	2021

Interim Annual Report - Nexus AG / Quarterly Statement Q3 2021

4