1 General information
SoftwareOne Holding AG ('the company') and its subsidiaries (together ‘the group’ or ‘SoftwareOne’) is a leading software and cloud solutions provider. It develops and delivers the technology solutions that modernise applications and software in the cloud, while enabling those purchases and optimising those investments over time.
The company is incorporated and domiciled in Stans, Switzerland. The address of its registered office is Riedenmatt 4, 6370 Stans. SoftwareOne Holding AG is traded on the SIX Swiss Exchange. The shares trade under the ticker symbol 'SWON'.
The consolidated financial statements of SoftwareOne are presented in Swiss francs (CHF). Unless otherwise stated, all amounts are stated in thousands of Swiss francs (TCHF). All figures shown are rounded in accordance with standard business rounding principles.
These consolidated financial statements were authorised for issue by the Board of Directors on 18 March 2024 and are subject to approval by the Annual General Meeting to be held on 18 April 2024.
2 Material accounting policy information
SoftwareOne Holding AG’s consolidated financial statements are prepared in accordance with the IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
Basis of presentation
New and amended standards and interpretations
As of 1 January 2023, the following amendments to IFRS Accounting Standards entered into force:
- IAS 1: Presentation of Financial Statements: Disclosure of Accounting Policies
- IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
- IAS 12: Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
- IAS 12: Income Taxes: International Tax Reform — Pillar Two Model Rules
Due to changes in accounting policies in IAS 1 SoftwareOne only discloses accounting policy information of transactions, other events or conditions which have a material impact on the consolidated financial statements.
Application of mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where the group operates. The legislation will be effective for the group’s financial year beginning 1 January 2024. SoftwareOne is in scope of the enacted or substantively enacted legislation and has performed an assessment of the group’s potential exposure to Pillar Two income taxes. The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial statements for the constituent entities in the group. Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which the group operates are above 15%. However, there are a limited number of jurisdictions where the transitional safe harbour relief does not apply and the Pillar Two effective tax rate is close to 15%. SoftwareOne does not expect a material exposure to Pillar Two income taxes in those jurisdictions.
All other mentioned amendments did not have a material effect on the group’s consolidated financial statements. SoftwareOne has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
New standards and interpretations not yet adopted
The IASB has issued several potentially relevant changes to IFRS Accounting Standards that will be effective in future accounting periods. New standards that are expected to have only a minor impact on the group and the effective date are listed below:
- Amendment to IAS 1: Classification of liabilities with covenants as current or non-current — adoption by 1 January 2024
- Amendments to IAS 7 and IFRS 7: Disclosure requirements about supplier finance arrangements — adoption by 1 January 2024
- Amendment to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability — adoption by 1 January 2025
There are no other IFRS Accounting Standards or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the group.
Correction of errors
In 2022, SoftwareOne finalised the assessment of the impact of the agenda decision of the IFRS Interpretations Committee (IFRS IC) on 'Principal versus Agent: Software Reseller (IFRS 15)' and retrospectively applied the related changes in accounting policies. In 2023, the group identified a further type of service contracts in Software & Cloud Services which should have been accounted for as agent on a net basis. For the comparative period, the correction of this error resulted in a reduction of revenue from Software & Cloud Services of TCHF 28,276 and a reduction of third-party service delivery costs of TCHF 28,276.
The result of the error correction within the consolidated income statement for the comparative period is shown in the following table:
in CHF 1,000 |
2022 reported |
Adjustment |
2022 adjusted |
|
|
|
|
Revenue from Software & Cloud Marketplace |
538,396 |
|
538,396 |
Revenue from Software & Cloud Services |
465,711 |
–28,276 |
437,435 |
|
|
|
|
Total revenue |
1,004,107 |
–28,276 |
975,831 |
Third-party service delivery costs |
–71,512 |
28,276 |
–43,236 |
|
|
|
|
Earnings before net financial items, taxes, depreciation and amortisation |
136,914 |
– |
136,914 |
|
|
|
|
Earnings before net financial items and taxes |
78,360 |
– |
78,360 |
|
|
|
|
Earnings before income tax |
–14,040 |
– |
–14,040 |
|
|
|
|
Loss for the period |
–58,334 |
– |
–58,334 |
Foreign currency translation
The following exchange rates were used:
|
|
2023 |
2022 |
||
Currency (CHF 1 =) |
Code |
Ø-rate |
Closing rate |
Ø-rate |
Closing rate |
|
|
|
|
|
|
Euro |
EUR |
1.03 |
1.08 |
1.00 |
1.02 |
US dollar |
USD |
1.11 |
1.19 |
1.05 |
1.08 |
British pound |
GBP |
0.90 |
0.94 |
0.85 |
0.90 |
Swedish krone |
SEK |
11.80 |
11.87 |
10.56 |
11.34 |
Norwegian krone |
NOK |
11.74 |
12.12 |
10.04 |
10.73 |
3 Change in the scope of consolidation
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at closing rate.
Contingent consideration arrangements related to business acquisitions in which payments are contingent on continued employment and thus compensation for future service is recognised as remuneration and accrued amounts presented as earn-out provisions.
Acquisitions in 2023
The fair values of the identifiable assets and liabilities as of the date of acquisition were:
in CHF 1,000 |
Beniva |
Others |
Total |
|
|
|
|
Cash and cash equivalents |
938 |
450 |
1,388 |
Trade receivables |
1,951 |
1,184 |
3,135 |
Other current assets |
53 |
684 |
737 |
Tangible assets |
17 |
20 |
37 |
Intangible assets (excluding goodwill) |
3,450 |
2,841 |
6,291 |
Other non-current assets |
– |
5 |
5 |
|
|
|
|
Total assets |
6,409 |
5,184 |
11,593 |
|
|
|
|
Trade payables |
562 |
265 |
827 |
Accrued expenses and contract liabilities |
296 |
443 |
739 |
Other current liabilities |
704 |
1,075 |
1,779 |
Financial liabilities |
– |
36 |
36 |
Deferred tax liabilities |
931 |
– |
931 |
|
|
|
|
Net assets acquired at fair value |
3,916 |
3,365 |
7,281 |
Acquisition of Beniva
On 5 July 2023, SoftwareOne acquired 100% of Beniva Consulting Group Inc, Canada, and 100% of Beniva International Ltd, US (together ‘Beniva’). Beniva is a leading provider in ServiceNow, Configuration Management Database, IT and Operations Management, Cloud Advisory and Application Services. The acquisition adds deep process automation and service management specialisation to SoftwareOne’s existing market-leading IT Asset Management (ITAM) services.
The earn-out amount is related to a continuing employment of the selling shareholder, other key employees and the achievement of revenue goals. It will be recognised as a personnel expense over a period of three years and thus not part of the purchase price.
The goodwill recognised is primarily attributed to the workforce and the expected growth of the ITAM business by combining the activities of Beniva with those of the group. The goodwill is not deductible for income tax purposes. Transaction costs of TCHF 665 are related to this acquisition.
Other acquisitions
On 25 May 2023, SoftwareOne acquired the remaining 80% of AppScore Technology Ltd, UK, following its initial investment of 20% in 2021. The purchase price paid for the acquisition of AppScore relates mainly to their intellectual property. No significant goodwill resulted from the purchase price allocation.
On 21 December 2023, SoftwareOne acquired 100% of Novis Euforia SA, Spain, a SAP and cloud services company specialised in migrating and converting SAP environments to SAP S/4HANA and the cloud. The acquisition further expands SoftwareOne’s SAP practice. The purchase price paid for the acquisition of Novis Euforia relates mainly to the skilled workforce and, therefore, represents goodwill.
If all acquisitions had taken place at the beginning of the year, total revenue of SoftwareOne would have been TCHF 1,019,305 and net profit for the period would have been TCHF 21,759.
Purchase considerations and goodwill
Details of the purchase considerations recognised at acquisition and the derivation of goodwill are as follows:
in CHF 1,000 |
Beniva |
Others |
Total |
|
|
|
|
Cash paid |
18,506 |
5,134 |
23,640 |
Carrying amount of previously held equity interest in associates |
– |
1,004 |
1,004 |
Fair value remeasurement of previously held equity interest in associates |
– |
–445 |
–445 |
Deferred payment |
– |
1,297 |
1,297 |
|
|
|
|
Total purchase consideration |
18,506 |
6,990 |
25,496 |
Less net assets acquired at fair value |
3,916 |
3,365 |
7,281 |
|
|
|
|
Goodwill |
14,590 |
3,625 |
18,215 |
The cash flow on acquisitions
in CHF 1,000 |
Beniva |
Others |
Total |
|
|
|
|
Cash consideration |
–18,506 |
–5,134 |
–23,640 |
Net cash acquired |
938 |
450 |
1,388 |
Cash consideration for current period acquisitions |
–17,568 |
–4,684 |
–22,252 |
Cash consideration for prior period acquisitions |
– |
–3,837 |
–3,837 |
|
|
|
|
Net outflow of cash – investing activities |
–17,568 |
–8,521 |
–26,089 |
4 Financial risk management
4.1 Financial risk factors
The group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk, equity price risk), credit risk and liquidity risk. The group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the group’s financial performance. The group uses derivative financial instruments to hedge certain risk exposures. The financial derivatives are measured with the aid of standardised mathematical models. The counterparty risk related to those derivatives is immaterial for the group.
Risk management is carried out by Group Treasury under a policy approved by the Board of Directors. Group Treasury identifies, evaluates, and hedges financial risks in close cooperation with the group’s operating entities. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments and investment of excess liquidity.
Market risk
Foreign exchange risk
The group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.
Group Treasury has set up a policy to manage its foreign exchange risk. The group hedges its foreign exchange risk exposure of recognised assets and liabilities and future commercial transactions by derivative contracts. The group reviews the currency exposure regularly and covers its risks in two ways:
- The group hedges the net exposure from foreign currency balance sheet positions with forward contracts. Such contracts, however, are not accounted for using hedge accounting.
- Highly probable future transactions are hedged with forward transactions (sales and purchase). These contracts are designated as cash flow hedges. The transactions are expected to affect profit and loss within the next 36 months. At inception of a hedge relationship, the group designates and documents the hedge relationship to apply hedge accounting. The hedge relationship includes the hedging instrument, the hedged item and the nature of the risk being hedged. The hedges are expected to be highly effective.
In addition, there are certain investments in foreign operations whose net assets are exposed to foreign currency translation risk which, as per group policy, is not hedged. These differences are recognised in other comprehensive income and accumulated in equity. Translation risk is not considered in the analysis below.
The following table details the group’s sensitivity to the major currencies with all the other variables held constant:
|
|
2023 |
2022 |
||||||
Impact in TCHF |
Sensitivity |
Earnings before income tax |
Equity |
Earnings before income tax |
Equity |
||||
|
|
|
|
|
|
|
|
|
|
EUR |
+/– 5 % |
+/– |
476 |
+/– |
1,452 |
+/– |
799 |
+/– |
614 |
USD |
+/– 5 % |
+/– |
268 |
+/– |
30 |
+/– |
439 |
+/– |
1,364 |
GBP |
+/– 5 % |
+/– |
296 |
+/– |
647 |
+/– |
320 |
+/– |
20 |
SEK |
+/– 5 % |
+/– |
100 |
+/– |
482 |
+/– |
112 |
+/– |
219 |
NOK |
+/– 5 % |
+/– |
289 |
+/– |
1,628 |
+/– |
84 |
+/– |
95 |
Interest rate risk
The group’s interest-bearing instruments with variable interest are cash, bank overdrafts, bank loans and a multiple currency revolving credit facility. Also refer to Note 18 Financial liabilities. Using these instruments, the group is exposed to interest rate risks. Currently, the mitigation possibilities are reviewed.
Equity price risk
The group is exposed to price risks related to listed shares. Changes in fair value are recognised in profit and loss as they arise. For a part of these listed equity instruments, the group entered into a total return swap agreement in 2022, in which it sold shares but remains exposed to the price risk related to these shares, refer to further explanations in section Liquidity Risk below.
A sensitivity analysis was performed. A 10% fluctuation in share price leads to fluctuations in pre-tax earnings of TCHF +/– 4,373 (prior year: TCHF +/– 5,841).
Credit risk
Group Treasury and the Group Credit & Collection Department are responsible for managing and analysing the credit risk for all new clients before standard payment and delivery terms and conditions are offered. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and contract assets. Risk control assesses the credit quality of the customers, considering its financial position, past experience and other factors. No collateral is required. Individual risk limits are set based on internal or external ratings in accordance with guidelines set by the Board. The utilisation of credit limits is regularly monitored.
There is no concentration of credit risk with respect to trade receivables, as the group has many customers that are internationally diversified. 36% of trade receivables are covered through credit insurance (prior year: 39%).
The remaining part is not insured for one of the following reasons:
- From end customers with top rating (based on internal and credit insurance assessment): 53% (prior year: 42%)
- Too small to be insured: 1% (prior year: 1%)
- No insurance available: 10% (prior year: 18%)
Refer to Note 11 Trade receivables for information about the credit risk exposure on the group’s trade receivables and contract assets using a provision matrix.
Liquidity risk
Cash flow forecasting is performed in the operating entities of the group and aggregated by Group Treasury. Group Treasury monitors rolling forecasts of the group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while always maintaining sufficient headroom on its undrawn borrowing facilities (for further details see below).
The table below analyses the group’s non-derivative financial liabilities according to relevant maturity groupings based on the remaining period as of the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows, i.e., undiscounted interest and principal payments:
|
|
|
Cash outflows |
|||
in CHF 1,000 |
Carrying amount |
Total cash outflow |
Less than 3 months |
Between 3 months and 1 year |
Between 1 and 5 years |
Over 5 years |
|
|
|
|
|
|
|
As of 31 December 2023 |
|
|
|
|
|
|
Trade payables |
2,290,475 |
2,290,475 |
2,075,376 |
215,099 |
– |
– |
Other payables |
190,993 |
190,993 |
6,402 |
9,517 |
175,074 |
– |
Accrued expenses |
39,157 |
39,157 |
18,316 |
20,841 |
– |
– |
Financial liabilities (excluding lease liabilities) |
132,265 |
107,430 |
95,786 |
4,669 |
6,975 |
– |
Lease liabilities |
32,747 |
35,215 |
3,000 |
11,103 |
18,884 |
2,228 |
|
|
|
|
|
|
|
Total |
2,685,637 |
2,663,270 |
2,198,880 |
261,229 |
200,933 |
2,228 |
|
|
|
Cash outflows |
|||
in CHF 1,000 |
Carrying amount |
Total cash outflow |
Less than 3 months |
Between 3 months and 1 year |
Between 1 and 5 years |
Over 5 years |
|
|
|
|
|
|
|
As of 31 December 2022 |
|
|
|
|
|
|
Trade payables |
1,915,936 |
1,915,936 |
1,695,224 |
220,712 |
– |
– |
Other payables |
181,238 |
181,238 |
23,275 |
725 |
157,238 |
– |
Accrued expenses 1) |
25,236 |
25,236 |
18,302 |
6,934 |
– |
– |
Financial liabilities (excluding lease liabilities) |
82,482 |
45,400 |
22,241 |
7,917 |
12,623 |
2,619 |
Lease liabilities |
33,070 |
34,104 |
3,007 |
12,104 |
16,901 |
2,092 |
|
|
|
|
|
|
|
Total |
2,237,962 |
2,201,914 |
1,762,049 |
248,392 |
186,762 |
4,711 |
1) Reduction of accrued expenses (TCHF 53,134), refer to Note 16.
In July 2022, the group signed an amendment and restatement agreement for the multiple currency revolving credit facility to increase the facility from CHF 470 million to CHF 660 million and extend the tenor to 31 December 2025. The initial agreement was signed in 2019. The facility contains two extension options which can be exercised with the consent of the lending banks in the fourth quarter of 2023 and 2024. In December 2023, SWO exercised the first extension option. The tenor of the facility was extended from 31 December 2025 to 31 December 2026. The facility contains one remaining extension option (which can be exercised with consent of the lending banks in December 2024), which could extend the maturity of the credit facility by another year to December 2027. Interest is payable at a base rate plus a margin ranging from 62.5 to 77.5 basis points initially, depending on the currency, and thereafter adjusted for changes in the leverage ratio of the group. As of 31 December 2023, CHF 70 million of the credit facility has been drawn (prior year: CHF 0 million). The facility is available until maturity date with interest periods ranging from one week to six months. The facility is subject to loan covenants (leverage ratio: net debt/earnings before net financial items, taxes, depreciation and amortisation). A potential breach of covenant triggers measures which are standard in such circumstances. Under the agreement, the covenants are monitored on a regular basis by the treasury department and half yearly reported to management and lending banks to ensure compliance with the agreement.
In December 2022, the group entered into a total return swap agreement related to listed equity securities. Under the total return swap, SoftwareOne sold the underlying shares for cash consideration of TCHF 42,559 but remains exposed to changes in the market value of these shares. As a result, the group did not derecognise the financial asset and recorded a financial liability for the receipts from swap contracts. In the event of a negative market price development of the underlying asset, there is a risk of a cash outflow when agreed thresholds are exceeded up to the amount of the consideration received. On maturity date of the total return swap, the liability from the swap contract and the related financial asset will both be derecognised and the related cashflows will be settled. As of 31 December 2023, the market price of the underlying asset has fallen below the agreed threshold. Thus, SoftwareOne recorded a cash outflow of TCHF 10,447 which is set off against the financial liability and classified as investing cashflow. The financial liability for the receipts from swap contracts amounted to TCHF 27,050 at the end of the reporting period (prior year: TCHF 41,938). The total return swap had a negative market value (prior year: positive market value).
The maturity structure of the derivative financial instruments based on cash flows is as follows:
|
|
|
Cashflows |
||
in CHF 1,000 |
Carrying amount |
Total cashflow |
Less than 3 months |
Between 3 months and 1 year |
Between 1 and 5 years |
|
|
|
|
|
|
As of 31 December 2023 |
|
|
|
|
|
Derivative assets with gross settlement |
3,407 |
|
|
|
|
– Cash outflow |
|
245,459 |
223,621 |
9,657 |
12,181 |
– Cash inflow |
|
248,972 |
226,209 |
10,022 |
12,741 |
Derivative liabilities with gross settlement |
13,453 |
|
|
|
|
– Cash outflow |
|
654,336 |
574,527 |
39,890 |
39,919 |
– Cash inflow |
|
642,353 |
563,828 |
38,744 |
39,781 |
|
|
|
Cashflows |
||
in CHF 1,000 |
Carrying amount |
Total cashflow |
Less than 3 months |
Between 3 months and 1 year |
Between 1 and 5 years |
|
|
|
|
|
|
As of 31 December 2022 |
|
|
|
|
|
Derivative assets with gross settlement |
4,048 |
|
|
|
|
– Cash outflow |
|
335,302 |
295,930 |
22,731 |
16,640 |
– Cash inflow |
|
339,588 |
298,360 |
23,924 |
17,304 |
Derivative liabilities with gross settlement |
6,318 |
|
|
|
|
– Cash outflow |
|
517,741 |
464,464 |
27,139 |
26,137 |
– Cash inflow |
|
511,832 |
460,105 |
25,969 |
25,758 |
The contractual agreement determines whether the contracting parties must fulfil their obligations from derivative financial instruments net or gross.
As of 31 December 2023, the group had total committed and uncommitted credit lines (including factoring) of CHF 1,149 million (prior year: CHF 1,098 million) available, of which 25% (prior year: 24%) was drawn. From the drawn amount, CHF 70 million were covered by financial covenants and fulfilled as of 31 December 2023 (prior year: CHF 0 million).
4.2 Capital risk management
The group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
Surplus cash held by the operating entities over and above working capital requirements are transferred to Group Treasury whenever the legal environment permits. Group Treasury invests surplus cash in interest-bearing current accounts or short-term time deposits to provide sufficient headroom as determined by the above-mentioned forecasts.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
Capital is measured based on the group’s consolidated financial statements and monitored closely on an ongoing basis. Management's target for the period under review was to strengthen the capital base to sustain and support further development of the business. In 2023, this goal was achieved through the positive operating results of the group.
The equity ratio for the period ended 31 December 2023 and the prior year were as follows:
in CHF 1,000 |
2023 |
2022 |
|
|
|
Total equity |
640,112 |
738,996 |
Total assets |
3,783,891 |
3,449,077 |
|
|
|
Equity ratio |
16.9 % |
21.4 % |
The equity ratio for 2023 decreased compared to the previous year, which is due to an increase of total assets and a reduction in equity as a result of dividends paid and repurchases of treasury shares under share buyback programme which were only partly compensated by the net income for the period.
4.3 Categories of financial instruments and fair value estimation
For purposes of subsequent measurement, SoftwareOne has financial assets at amortised cost (debt instruments), financial assets at fair value through profit or loss and derivatives designated as hedging instruments for purposes of subsequent measurement.
The group’s financial assets at amortised cost comprise trade and other receivables, loans and cash and cash equivalents.
The group’s financial liabilities include trade and other payables, accrued expenses, contingent consideration liabilities and other financial liabilities including bank overdrafts and derivative financial instruments.
SoftwareOne has listed equity instruments presented as short-term financial assets which are subsequently measured at fair value through profit or loss. Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in finance income and finance costs.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value through profit or loss except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to the income statement when the hedged item affects profit or loss. The ineffective portion is recognised immediately in the income statement.
In case of a positive value, the derivative is recognised as an asset and in case of a negative value, as a liability (classified as non-current when the remaining maturity of the hedged item is more than 12 months and as current when the remaining maturity of the hedged item is less than 12 months).
Categories of financial instruments
The following table discloses the carrying amounts and fair values, as required, of the group’s financial instruments by class and category:
As of 31 December 2023 |
|
|
|
|
in CHF 1,000 |
IFRS 9 category |
Carrying amount |
Fair value |
Fair value level |
|
|
|
|
|
FINANCIAL ASSETS |
|
|
|
|
Cash and cash equivalents |
Amortised cost |
267,389 |
n/a* |
|
Trade receivables |
Amortised cost |
2,317,187 |
n/a* |
|
Other receivables |
Amortised cost |
224,533 |
n/a* |
|
Derivative financial instruments |
Fair value through profit or loss |
2,537 |
|
Level 2 |
Derivative financial instruments |
Designated as cash flow hedge |
870 |
|
Level 2 |
Financial assets - listed equity instrument |
Fair value through profit or loss |
43,732 |
|
Level 1 |
Financial assets - loans |
Amortised cost |
125 |
n/a* |
|
|
|
|
|
|
Total financial assets |
|
2,856,373 |
|
|
|
|
|
|
|
FINANCIAL LIABILITIES |
|
|
|
|
Trade payables |
Financial liabilities at amortised cost |
2,290,475 |
n/a* |
|
Other payables |
Financial liabilities at amortised cost |
190,993 |
n/a* |
|
Accrued expenses |
Financial liabilities at amortised cost |
39,157 |
n/a* |
|
Contingent consideration liabilities |
Fair value through profit or loss |
7,342 |
|
Level 3 |
Financial liabilities |
Financial liabilities at amortised cost |
97,873 |
n/a* |
|
Financial liabilities |
Fair value through profit or loss |
27,050 |
|
Level 2 |
Derivative financial instruments |
Fair value through profit or loss |
10,281 |
|
Level 2 |
Derivative financial instruments |
Designated as cash flow hedge |
3,172 |
|
Level 2 |
Lease liabilities |
n/a |
32,747 |
|
|
|
|
|
|
|
Total financial liabilities |
|
2,699,090 |
|
|
* The carrying amount is a reasonable approximation for fair value.
For investments in listed equity instruments the group recognised a fair value loss of TCHF 9,244 in finance expenses in 2023 (prior year: TCHF 71,328).
As of 31 December 2022 |
|
|
|
|
in CHF 1,000 |
IFRS 9 category |
Carrying amount |
Fair value |
Fair value level |
|
|
|
|
|
FINANCIAL ASSETS |
|
|
|
|
Cash and cash equivalents |
Amortised cost |
325,791 |
n/a* |
|
Trade receivables |
Amortised cost |
1,944,969 |
n/a* |
|
Other receivables |
Amortised cost |
190,948 |
n/a* |
|
Derivative financial instruments |
Fair value through profit or loss |
1,804 |
|
Level 2 |
Derivative financial instruments |
Designated as cash flow hedge |
2,244 |
|
Level 2 |
Financial assets - listed equity instrument |
Fair value through profit or loss |
58,415 |
|
Level 1 |
Financial assets - loans |
Amortised cost |
775 |
n/a* |
|
|
|
|
|
|
Total financial assets |
|
2,524,946 |
|
|
|
|
|
|
|
FINANCIAL LIABILITIES |
|
|
|
|
Trade payables |
Financial liabilities at amortised cost |
1,915,936 |
n/a* |
|
Other payables |
Financial liabilities at amortised cost |
181,238 |
n/a* |
|
Accrued expenses 1) |
Financial liabilities at amortised cost |
25,236 |
n/a* |
|
Contingent consideration liabilities |
Fair value through profit or loss |
15,030 |
|
Level 3 |
Financial liabilities |
Financial liabilities at amortised cost |
25,514 |
n/a* |
|
Financial liabilities |
Fair value through profit or loss |
41,938 |
|
Level 2 |
Derivative financial instruments |
Fair value through profit or loss |
3,576 |
|
Level 2 |
Derivative financial instruments |
Designated as cash flow hedge |
2,742 |
|
Level 2 |
Lease liabilities |
n/a |
33,070 |
|
|
|
|
|
|
|
Total financial liabilities |
|
2,244,280 |
|
|
* The carrying amount is a reasonable approximation for fair value.
1) Reduction of accrued expenses (TCHF 53,134), refer to Note 16.
Fair value estimation
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables with a remaining term of up to 12 months, as well as other current financial assets and liabilities, represent a reasonable approximation of their fair values, due to the short-term maturities of these instruments.
The fair value of financial assets (equity instruments) is based on observable price quotations at the reporting date. The fair value of derivatives is determined based on input factors observed directly or indirectly on the market. The fair value of foreign exchange forward contracts is based on forward exchange rates.
Financial instruments carried at fair value are analysed by valuation method. The fair value hierarchy has been defined as follows:
Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices for identical assets or liabilities at the reporting date.
Level 2: The fair value measurements are those derived from valuation techniques using inputs for the asset or liability that are observable market data, either directly or indirectly. Such valuation techniques include the discounted cash flow method and option pricing models. For example, the fair value of interest rate and currency swaps is determined by discounting estimated future cash flows, and the fair value of forward foreign exchange contracts is determined using the forward exchange market at the end of the reporting period.
Level 3: The fair value measurements are those derived from valuation techniques using significant inputs for the asset or liability that are not based on observable market data.
The following table discloses valuation classes for financial instruments measured at fair value:
|
As of 31 December 2023 |
As of 31 December 2022 |
||||||
in CHF 1,000 |
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Financial assets |
43,732 |
– |
– |
43,732 |
58,415 |
– |
– |
58,415 |
Derivative financial instruments |
– |
3,407 |
– |
3,407 |
– |
4,048 |
– |
4,048 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Contingent consideration liabilities |
– |
– |
7,342 |
7,342 |
– |
– |
15,030 |
15,030 |
Financial liabilities |
– |
27,050 |
– |
27,050 |
– |
41,938 |
– |
41,938 |
Derivative financial instruments |
– |
13,453 |
– |
13,453 |
– |
6,318 |
– |
6,318 |
There have been no transfers between the different hierarchy levels in 2023 and 2022.
The change in carrying values associated with 'Level 3' contingent consideration liabilities are set forth below:
in CHF 1,000 |
2023 |
2022 |
|
|
|
On 1 January |
15,030 |
8,644 |
Business acquisitions |
– |
937 |
Additions |
– |
8,993 |
Settlement in cash |
–6,522 |
–3,606 |
Fair value adjustment |
–895 |
167 |
Currency translation adjustments |
–271 |
–105 |
|
|
|
As of 31 December |
7,342 |
15,030 |
The most significant contingent consideration liability relates to the acquisition of the customer base of Predica acquired in 2022.
Predica (fair value as of 31 December 2023: TCHF 4,347; prior year: TCHF 8,750): The contingent consideration liability of Predica depends on certain KPIs of the year 2023 to 2024 and the retention of three key employees. An early termination of one key employee resulted in a fair value gain of TCHF 1,300. An amount of TCHF 2,708 was paid in 2023. The remaining contingent consideration is capped at a maximum of TCHF 4,347. A partial amount of TCHF 3,338 is exclusively related to the retention of the two remaining key employees. The calculation for the performance year 2024 is primarily based on chargeability of delivery resources and new customers and amounts to a maximum of TCHF 1,404.
4.4 Transfer of financial assets
The group enters transactions in which it transfers trade receivables under factoring agreements and, as a result, may either be eligible to derecognise the transferred receivables in their entirety or must continue to recognise the transferred receivables to the extent of any continuing involvement, depending on certain criteria.
Receivables subject to factoring arrangements are derecognised on sale and these assets are not held to collect contractual cash flows and would be measured at fair value through profit or loss. However, due to their short-term nature, the difference between transaction price and fair value is not considered to be material. Where the factored receivables continue to be recognised in the balance sheet, they are treated as held to collect contractual cash flows and measured at amortised cost.
The amount of the receivables sold as of 31 December 2023 is TCHF 192,671 (prior year: TCHF 197,477). The amount is fully derecognised from the balance sheet.
5 Critical accounting estimates and judgments
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates may differ from the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Significant estimates
Income taxes (Note 10)
The group is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes.
In particular, the deferred tax assets on unused tax losses require estimates of the amount and dates of future taxable income as well as the future tax planning strategies. If the group expects not to realise the unused tax losses, these are not recognised.
Contingent consideration liabilities related to business acquisitions and the acquisition of customer relationships (Note 4.3, 15 and 18)
Contingent consideration liabilities reflect potential future payments following the acquisition of customer relationships and businesses. The calculation of the future payments is based on different variable input factors. These future cash flows were estimated at initial recognition. These assumptions are reviewed at each reporting date and changes impact profit and loss.
Goodwill (Note 15)
The recoverable amount of cash-generating units is measured on the basis of value-in-use calculations and as such is significantly impacted by the projected free cashflows, the discount rate, future tax rate and the revenue growth rate, which are subject to management judgement. Actual cash flows as well as other input parameters could vary significantly from these estimates.
6 Revenue
Revenue from contracts with customers comprises revenue from the sale of Software & Cloud Marketplace products as well as the sale of Software & Cloud Services. Revenue from contracts with customers is recognised when the performance obligation in the contract has been satisfied either at the ‘point in time’ or ‘over time’ as control of the promised goods or service is transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those goods or services. The normal credit term is 30 to 90 days upon delivery.
Revenue from Software & Cloud Marketplace
SoftwareOne enters contracts with end customers to sell Software & Cloud Marketplace products of several third-party software providers. Below, software is used as a synonym for Software & Cloud Marketplace. A distinction is made between two types of software selling arrangements:
- Direct business: As a ‘software advisor’, the group’s obligation in these arrangements is only to arrange for another entity to provide the software license to the end customer. Thus, the performance obligation consists of establishing the business relationship between the software provider and the end customer. When the software is provided to the end customer, SoftwareOne is entitled to receive an agency commission from the software provider and recognises revenue at this point of time. Hence, SoftwareOne acts as an agent and recognises revenue at the amount that it retains from its agency services.
- Indirect business: As a ‘value added reseller’, the group provides pre-sales consulting services to end customers and advises them on the selection of the appropriate end-to-end software or cloud technology solution. SoftwareOne is in the contractual relationship between the third-party software provider and the end customer and is commissioned to place orders and manage customer purchases on behalf of the end customer. Even if SoftwareOne provides pre-sales services in connection with the sale of the software licenses to its end customers, the group is not primarily responsible for fulfilling the promise to provide the software or cloud solution. Primary responsibility to provide the products lies with the third-party software provider, while SoftwareOne provides the access to the software license or manages cloud subscriptions. SoftwareOne invoices the end customer and receives the considerations from the end customer. SoftwareOne concluded that it does not control the software from the third-party software providers before it is transferred to the end customer and therefore acts as an agent in these arrangements. Revenue is recognised at the point in time when the license agreement is signed by all parties involved and the software manufacturer accepted the deal and the terms and conditions. If licenses are purchased via a distributor, SoftwareOne transfers the license key directly to the end customer. Thus, revenue is recognised at the point in time when the access to the software license is transferred. The group recognises revenue in the net amount in the consolidated financial statements, i.e., the difference between the consideration received from the end customer and cost of software purchased.
In the indirect business, the group also enters multi-year licensing contracts with annual billing of the corresponding fee in which the end customer has the right to change the software reseller during the contract term. For such contracts, SoftwareOne recognises revenue for the contract between the end customer and the third-party software provider upfront for the entire term when the contract is signed considering the effects of a potential change in channel partner based on historical experience as a variable consideration.
Additionally, non-cancellable multi-year licensing contracts with annual billing of the corresponding fee exist without the right to change the software reseller during the contract term. As the customer pays in arrears, SoftwareOne is effectively providing financing to the customer. Hence, there are two components in such arrangements: a revenue component (for the notional cash sales price net of the related costs of purchasing the software); and a loan component (for the effect of the deferred payment terms). Interest income on the loan finance component is calculated based on the rate that would be reflected in a separate financing transaction between the group and the end customers at contract inception and is presented under finance income. SoftwareOne uses the practical expedient in IFRS 15 and does not adjust the promised amount of consideration for the effects of a significant financing component if it expects at contract inception that the period between the provision access to the software license to the customer and the receipt of the consideration from the end customer will be one year or less.
Revenue from Software & Cloud Services
SoftwareOne provides a wide range of technology consulting services but also delivers self-developed software.
Revenue from technology consulting services is generally recognised over time as the customer simultaneously receives and consumes the benefits provided. SoftwareOne uses an input method based on costs incurred to measure progress towards the stage of completion of the service. The group determined that the input method based on costs incurred in relation to total expected costs is the best method of measuring progress of the consulting services because there is a direct relationship between SoftwareOne’s effort and the transfer of the service to the customer. In addition, in cases where the group provides standardised services (i.e., managed services), revenue is recognised pro rata over the term of the contract. Payment is due 30 days after the solutions and services have been performed. As a rule, services are priced separately. If this is not the case, the transaction prices are allocated based on the relative individual selling prices.
Revenue from self-developed software is recognised at the point in time when control of the license is transferred to the customer. Such contracts and related revenues exist only to a limited extent. The same applies to revenue from external software which is only used to provide software asset management solutions. The related revenue is recognised net under revenue from Software & Cloud Services.
Transaction price of unsatisfied performance obligations
SoftwareOne uses the practical expedient in IFRS 15.121 and does not disclose information about the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied when the original expected duration of the underlying contract is one year or less. After applying this practical expedient, the remaining performance obligations to be disclosed 31 December 2023 and 2022 are not material.
Breakdown of revenue
For management purposes, SoftwareOne is organised by geographical areas. The breakdown of revenue below follows the regional clusters by the group’s operating segments, refer to Note 27 Segment reporting.
Revenue is broken down as follows:
2023 |
|
|
|
|
|
in CHF 1,000 |
EMEA |
NORAM |
LATAM |
APAC |
Total |
|
|
|
|
|
|
Revenue from Software & Cloud Marketplace |
368,976 |
64,754 |
33,764 |
82,283 |
549,777 |
Revenue from Software & Cloud Services |
260,353 |
76,513 |
61,600 |
63,046 |
461,512 |
|
|
|
|
|
|
Total revenue |
629,329 |
141,267 |
95,364 |
145,330 |
1,011,289 |
2022 |
|
|
|
|
|
in CHF 1,000 |
EMEA |
NORAM |
LATAM |
APAC |
Total |
|
|
|
|
|
|
Revenue from Software & Cloud Marketplace |
360,998 |
77,224 |
34,614 |
65,560 |
538,396 |
Revenue from Software & Cloud Services 1) |
235,086 |
76,222 |
65,082 |
61,045 |
437,435 |
|
|
|
|
|
|
Total revenue 1) |
596,084 |
153,446 |
99,696 |
126,605 |
975,831 |
1) Prior-year figures restated, refer to Note 2 Correction of errors.
SoftwareOne distinguishes between indirect and direct business when generating revenue from Software & Cloud Marketplace:
in CHF 1,000 |
2023 |
2022 |
|
|
|
Revenue from Software & Cloud Marketplace |
|
|
– indirect business |
405,173 |
438,409 |
– direct business |
144,604 |
99,987 |
|
|
|
Total revenue from Software & Cloud Marketplace |
549,777 |
538,396 |
7 Personnel expenses
in CHF 1,000 |
2023 |
2022 |
|
|
|
Salaries fixed |
–415,354 |
–375,906 |
Salaries variable |
–82,241 |
–115,088 |
Social security costs |
–78,801 |
–75,401 |
Earn-out expenses (Note 17) |
–14,760 |
–34,319 |
Pension costs – defined benefit plans (Note 19) |
–5,497 |
–5,477 |
Pension costs – defined contribution plans |
–10,647 |
–9,529 |
Share-based payment expense (Note 24) |
–6,650 |
–12,507 |
Other personnel expenses |
–30,695 |
–27,661 |
|
|
|
Total personnel expenses |
–644,645 |
–655,888 |
|
|
|
Average head count (FTE) |
9,268 |
8,948 |
In 2023, one-time costs for restructuring of TCHF 28,349 were recognised in personnel expenses.
8 Other operating expenses
in CHF 1,000 |
2023 |
2022 |
|
|
|
Travel and car expenses |
–28,934 |
–24,336 |
Administrative expenses |
–72,001 |
–49,408 |
Maintenance and utility expenses |
–7,569 |
–8,831 |
Information technology expenses |
–26,679 |
–18,460 |
Telecommunication expenses |
–3,128 |
–3,725 |
Marketing expenses |
–11,702 |
–9,336 |
Bad debt expenses |
–11,185 |
–10,594 |
Other expenses |
–19,249 |
–14,785 |
Loss on disposal of subsidiaries |
– |
–29,682 |
|
|
|
Total other operating expenses |
–180,447 |
–169,157 |
Other operating expenses of 2023 were impacted by one-time advisory costs of TCHF 32,582 for the strategic review and the operational excellence programme.
9 Finance result
in CHF 1,000 |
2023 |
2022 |
|
|
|
Interest income |
3,362 |
1,600 |
Other finance income |
3,623 |
4,157 |
Change in fair value of contingent consideration liability |
1,483 |
– |
|
|
|
Finance income |
8,468 |
5,757 |
Interest expense |
–10,983 |
–4,829 |
Other finance expenses |
–19,952 |
–83,047 |
Change in fair value of contingent consideration liability |
–588 |
–167 |
Losses from fair value remeasurement of previously held equity interest |
–445 |
– |
Finance expenses |
–31,968 |
–88,043 |
|
|
|
Foreign exchange differences, net |
–9,773 |
–9,933 |
|
|
|
Total finance result |
–33,273 |
–92,219 |
Other finance income includes TCHF 2,822 income from significant finance components (prior year: TCHF 3,904).
Other finance expenses include a fair value loss of TCHF 9,244 from the valuation of equity instruments (prior year: TCHF 71,328) and TCHF 5,111 factoring expenses (prior year: TCHF 4,488).
The foreign exchange differences, net result 2023 excludes unrealised gains on derivatives designated as instruments to hedge foreign currency risks in the amount of TCHF 1,941 (prior year: TCHF 128) recognised in OCI and to be reclassified to the income statement in future periods. In 2023, foreign exchange losses of TCHF 2,177 (prior year: TCHF 1,784) have been reclassified to profit and loss, refer to Note 13 Derivative financial instruments.
10 Income taxes
Tax expenses comprise the following positions:
in CHF 1,000 |
2023 |
2022 |
|
|
|
Current income taxes |
–42,665 |
–48,433 |
Change in deferred taxes |
1,646 |
4,139 |
|
|
|
Total tax expense |
–41,019 |
–44,294 |
The tax on the group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:
in CHF 1,000 |
2023 |
2022 |
|
|
|
Earnings before income tax (EBT) |
62,462 |
–14,040 |
Expected average group tax rate |
29.9 % |
–119.3 % |
|
|
|
Tax at expected average rate |
–18,658 |
–16,752 |
+/– Effect of |
|
|
Expenses not deductible for tax purposes |
–21,337 |
–22,174 |
Income not subject to tax |
1,075 |
1,986 |
Utilisation of previously unrecognised tax losses |
1,397 |
1,188 |
Impairment of previously recognised tax losses |
–269 |
–4,756 |
Capitalisation of tax losses previously not recognised |
2,144 |
1,023 |
Unrecognised current year's tax losses |
–3,079 |
–2,024 |
Current income tax charges/credits related to prior periods |
–941 |
–1,202 |
Impact from tax rate changes |
–846 |
118 |
Other effects |
–505 |
–1,701 |
|
|
|
Total tax expense |
–41,019 |
–44,294 |
|
|
|
Effective tax rate |
65.7 % |
–315.5 % |
The group’s expected average tax rate is the aggregate obtained by applying the expected tax rate for each individual jurisdiction to its respective result before taxes. These results vary in different jurisdictions. The weighted average expected tax rate was 29.9% (prior year: -119.3%).
The group has not recognised deferred tax assets of TCHF 3,080 (prior year: TCHF 2,024) in respect of losses for the period ended 31 December 2023 of TCHF 14,257 (prior year: TCHF 9,043).
Other effects in 2023 are mainly related to withholding taxes on intercompany transactions and additional local taxes as in prior year.
Deferred income tax
Deferred tax income of TCHF 554 (prior year: deferred tax expenses of TCHF 1,048) is recorded in other comprehensive income on actuarial losses on defined benefit liabilities and on hedge accounting.
Deferred tax assets and liabilities are based on the temporary differences between group valuation and tax bases.
|
2023 |
2022 |
||
in CHF 1,000 |
Deferred tax assets |
Deferred tax liabilities |
Deferred tax assets |
Deferred tax liabilities |
|
|
|
|
|
Trade receivables |
4,716 |
8,400 |
4,270 |
7,413 |
Other current assets |
905 |
2,146 |
1,052 |
759 |
Tangible, intangible and right-of-use assets |
4,129 |
24,815 |
4,504 |
27,518 |
Other non-current assets |
729 |
230 |
262 |
223 |
Accrued expenses, prepaid income and contract assets |
4,712 |
2,437 |
5,514 |
905 |
Other current liabilities |
11,454 |
2,425 |
9,215 |
565 |
Defined benefit liabilities |
1,104 |
6 |
805 |
– |
Other non-current liabilities |
7,097 |
1,015 |
7,050 |
376 |
Deferred taxes from losses carried forward |
10,709 |
– |
9,876 |
– |
|
|
|
|
|
Total |
45,555 |
41,474 |
42,548 |
37,759 |
Offsetting of balances |
–20,476 |
–20,476 |
–14,073 |
–14,073 |
|
|
|
|
|
Total |
25,079 |
20,998 |
28,475 |
23,686 |
For some group companies, dividend payments are subject to a withholding tax which cannot be fully recovered in Switzerland. The company has not recognised deferred tax liabilities associated with investments in subsidiaries where the group can control the reversal of the temporary differences and where it is not probable that the temporary differences will reverse in the foreseeable future.
The aggregate amount of temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognised amounted to TCHF 13,566 (prior year: TCHF 33,515).
The movement of available tax loss carry forwards is as follows:
in CHF 1,000 |
2023 |
2022 |
|
|
|
On 1 January |
87,490 |
125,018 |
Disposal of subsidiaries |
– |
–824 |
Tax losses arising in current year |
21,093 |
13,585 |
Tax losses utilised against current year profits |
–14,772 |
–15,781 |
Expired tax losses during the period |
–2,676 |
–3,015 |
Other movements |
4,172 |
–27,481 |
Currency translation adjustments |
–5,975 |
–4,012 |
|
|
|
As of 31 December |
89,332 |
87,490 |
Deferred tax assets of TCHF 10,709 (prior year: TCHF 9,876) were recorded in respect of available tax loss carry forwards of TCHF 39,666 (prior year: TCHF 37,061).
Tax losses, for which no deferred tax asset was recognised, will expire as follows:
in CHF 1,000 |
2023 |
2022 |
|
|
|
Expiry within 12 months |
923 |
1,818 |
Expiry in 2–3 years |
9,213 |
9,258 |
Expiry in 4–5 years |
21,071 |
9,648 |
Expiry in more than 5 years |
6,721 |
8,925 |
No expiry date |
11,737 |
20,780 |
|
|
|
Total not recognised tax losses |
49,665 |
50,429 |
11 Trade receivables
in CHF 1,000 |
2023 |
2022 |
|
|
|
Trade receivables |
2,343,507 |
1,963,504 |
Less provision for impairment of trade receivables |
–26,320 |
–18,535 |
|
|
|
Total trade receivables, net |
2,317,187 |
1,944,969 |
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
For trade receivables the group applies a simplified approach in calculating an allowance for expected credit losses (ECLs). Therefore, the group does not track changes in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The group has established a provision matrix that is based on the group’s historical observed default rates. The group calibrates the matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e. gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults, the historical default rates are adjusted.
The provision rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., geographical region and customer rating and coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability weighted outcome and reasonable and supportable information that is available at the reporting date about past events, current conditions, and forecasts of future economic conditions.
At each reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
The aging of the receivables and the related lifetime ECLs for the year 2023 and 2022 are as follows:
2023 |
|
|
|
in CHF 1,000 |
Expected credit loss rate |
Estimated total gross carrying amount at default |
Expected credit loss |
|
|
|
|
Not past due |
–0.1 % |
1,939,721 |
–1,351 |
Past due since 1–90 days |
–0.3 % |
294,933 |
–853 |
Past due since 91–180 days |
–4.3 % |
56,614 |
–2,435 |
Past due since 181–360 days |
–24.1 % |
24,802 |
–5,967 |
Past due since more than 360 days |
–57.3 % |
27,437 |
–15,714 |
|
|
|
|
Total trade receivables, gross |
–1.1 % |
2,343,507 |
–26,320 |
2022 |
|
|
|
in CHF 1,000 |
Expected credit loss rate |
Estimated total gross carrying amount at default |
Expected credit loss |
|
|
|
|
Not past due |
–0.1 % |
1,681,720 |
–1,507 |
Past due since 1–90 days |
–1.1 % |
217,727 |
–2,344 |
Past due since 91–180 days |
–6.9 % |
35,653 |
–2,469 |
Past due since 181–360 days |
–26.1 % |
16,171 |
–4,213 |
Past due since more than 360 days |
–65.4 % |
12,233 |
–8,002 |
|
|
|
|
Total trade receivables, gross |
–0.9 % |
1,963,504 |
–18,535 |
Movements on the group’s provision for impairment of trade receivables are as follows:
in CHF 1,000 |
2023 |
2022 |
|
|
|
On 1 January |
–18,535 |
–13,303 |
Disposal of subsidiaries |
– |
3,247 |
Allowance recognised |
–18,183 |
–17,041 |
Receivables written off during the year as uncollectible |
2,338 |
1,372 |
Unused amounts reversed |
6,645 |
6,650 |
Currency translation adjustments |
1,415 |
540 |
|
|
|
As of 31 December |
–26,320 |
–18,535 |
12 Other receivables, prepaid expenses and contract assets
in CHF 1,000 |
2023 |
2022 |
|
|
|
Other receivables |
90,117 |
74,547 |
– thereof financial assets: 24,003 (prior year: 8,777) |
|
|
Indemnification assets |
2,027 |
2,091 |
Prepaid expenses |
27,405 |
37,409 |
Contract assets |
90,289 |
88,217 |
|
|
|
Current other receivables, prepaid expenses and contract assets |
209,838 |
202,264 |
Other receivables |
207,093 |
191,244 |
– thereof financial assets: 200,530 (prior year: 182,171) |
|
|
Indemnification assets |
529 |
518 |
|
|
|
Non-current other receivables |
207,622 |
191,762 |
|
|
|
Total other receivables, prepaid expenses and contract assets |
417,460 |
394,026 |
Current other receivables mainly include VAT and other sales tax receivables.
Indemnification assets are related to acquisitions of prior periods. The underlying risks that have been classified as contingent liabilities are recorded as provisions.
Contract assets are initially recognised for services as receipt of consideration is conditional on successful completion of the service. Upon completion of the service and acceptance by the customer, the amounts recognised as contract assets are reclassified to trade receivables.
Other non-current receivables include TCHF 190,145 non-current trade receivables for multi-year contracts (prior year: TCHF 171,475).
13 Derivative financial instruments
|
2023 |
2022 |
2023 |
2022 |
||
in CHF 1,000 |
Notional amount |
Notional amount |
Derivative financial assets |
Derivative financial liabilities |
Derivative financial assets |
Derivative financial liabilities |
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
Forward foreign exchange contracts |
888,386 |
829,426 |
3,006 |
12,457 |
3,769 |
5,515 |
– cash flow hedges recognised in OCI |
66,671 |
65,101 |
469 |
2,176 |
1,964 |
1,939 |
– not designated as hedging instruments |
821,715 |
764,325 |
2,537 |
10,281 |
1,805 |
3,576 |
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
Forward foreign exchange contracts |
52,751 |
43,043 |
401 |
996 |
279 |
803 |
– cash flow hedges recognised in OCI |
52,751 |
43,043 |
401 |
996 |
279 |
803 |
|
|
|
|
|
|
|
Total derivatives |
941,137 |
872,469 |
3,407 |
13,453 |
4,048 |
6,318 |
In 2023 and 2022, no ineffectiveness was recognised in the income statement.
14 Tangible assets
Tangible assets are stated at historical cost less depreciation and impairments. Depreciation is calculated using the straight-line method over the expected useful life as follows:
- Land is not depreciated
- Buildings: max. 33 years
- Furniture, fixtures and other equipment: max. 5 years
- Leasehold improvements: max. 10 years or shorter duration lease contract
- Vehicles: max. 5 years
- IT equipment: max. 3 years
in CHF 1,000 |
Land |
Buildings |
IT equipment |
Leasehold improvement |
Furniture and fixtures |
Vehicles |
Other equipment |
Total |
|
|
|
|
|
|
|
|
|
Historical cost |
|
|
|
|
|
|
|
|
On 1 January 2023 |
3,306 |
14,934 |
25,318 |
7,019 |
6,183 |
1,911 |
602 |
59,273 |
Business acquisitions |
– |
– |
17 |
– |
– |
20 |
– |
37 |
Additions |
– |
– |
3,486 |
1,140 |
754 |
224 |
246 |
5,850 |
Disposals |
– |
– |
–2,770 |
–806 |
–551 |
–304 |
–319 |
–4,750 |
Reclassification to intangible assets 1) |
– |
– |
–6,690 |
– |
– |
– |
– |
–6,690 |
Currency translation adjustments |
178 |
993 |
–1,125 |
–340 |
–390 |
–153 |
–73 |
–910 |
|
|
|
|
|
|
|
|
|
As of 31 December 2023 |
3,484 |
15,927 |
18,236 |
7,013 |
5,996 |
1,698 |
456 |
52,810 |
|
|
|
|
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
On 1 January 2023 |
– |
936 |
17,718 |
4,083 |
3,839 |
1,209 |
426 |
28,211 |
Additions |
– |
376 |
3,886 |
914 |
698 |
220 |
232 |
6,326 |
Disposals |
– |
– |
–2,716 |
–751 |
–478 |
–304 |
–244 |
–4,493 |
Reclassification to intangible assets 1) |
– |
– |
–4,561 |
– |
– |
– |
– |
–4,561 |
Currency translation adjustments |
– |
310 |
–823 |
–205 |
–170 |
–66 |
–71 |
–1,025 |
|
|
|
|
|
|
|
|
|
As of 31 December 2023 |
– |
1,622 |
13,504 |
4,041 |
3,889 |
1,059 |
343 |
24,458 |
|
|
|
|
|
|
|
|
|
Carrying amount 31 December 2023 |
3,484 |
14,305 |
4,732 |
2,972 |
2,107 |
639 |
113 |
28,352 |
1) Correction of acquired software for one single entity which was presented in tangible assets in prior year.
As of 31 December 2023 and 2022, there were no contractual commitments for the purchase of tangible assets and no impairment was required.
in CHF 1,000 |
Land |
Buildings |
IT equipment |
Leasehold improvement |
Furniture and fixtures |
Vehicles |
Other equipment |
Total |
|
|
|
|
|
|
|
|
|
Historical cost |
|
|
|
|
|
|
|
|
On 1 January 2022 |
3,534 |
16,255 |
27,602 |
5,736 |
5,556 |
2,162 |
916 |
61,761 |
Business acquisitions |
– |
– |
69 |
29 |
50 |
– |
34 |
182 |
Additions |
– |
– |
4,504 |
1,795 |
1,947 |
349 |
125 |
8,720 |
Disposals |
– |
–478 |
–5,704 |
–720 |
–675 |
–525 |
–324 |
–8,426 |
Disposal of subsidiaries |
– |
– |
–332 |
–6 |
–72 |
– |
– |
–410 |
Currency translation adjustments |
–228 |
–843 |
–821 |
185 |
–623 |
–75 |
–149 |
–2,554 |
|
|
|
|
|
|
|
|
|
As of 31 December 2022 |
3,306 |
14,934 |
25,318 |
7,019 |
6,183 |
1,911 |
602 |
59,273 |
|
|
|
|
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
On 1 January 2022 |
– |
984 |
18,094 |
3,753 |
3,827 |
1,526 |
709 |
28,893 |
Additions |
– |
373 |
5,720 |
974 |
817 |
192 |
113 |
8,189 |
Disposals |
– |
–334 |
–5,360 |
–720 |
–576 |
–471 |
–231 |
–7,692 |
Disposal of subsidiaries |
– |
– |
–206 |
–6 |
–48 |
– |
– |
–260 |
Currency translation adjustments |
– |
–87 |
–530 |
82 |
–181 |
–38 |
–165 |
–919 |
|
|
|
|
|
|
|
|
|
As of 31 December 2022 |
– |
936 |
17,718 |
4,083 |
3,839 |
1,209 |
426 |
28,211 |
|
|
|
|
|
|
|
|
|
Carrying amount 31 December 2022 |
3,306 |
13,998 |
7,600 |
2,936 |
2,344 |
702 |
176 |
31,062 |
15 Intangible assets
Purchased intangible assets such as software, acquired technology and customer relationships are measured at cost less accumulated amortisation (applying the straight-line method) and any impairment. The useful life is as follows:
- Software: 3-10 years
- Acquired customer relationships: max. 10 years
- Acquired technology and other intangible assets: 3-10 years
- Internally generated intangible assets: 3-5 years
in CHF 1,000 |
Goodwill |
Software, acquired technology and customer relationships |
Brand |
Internally generated intangibles |
Total |
|
|
|
|
|
|
Historical cost |
|
|
|
|
|
On 1 January 2023 |
461,813 |
165,025 |
31,796 |
101,958 |
760,592 |
Business acquisitions |
18,215 |
6,291 |
– |
– |
24,506 |
Additions |
– |
3,643 |
– |
47,729 |
51,372 |
Reclassification from tangible assets 1) |
– |
6,690 |
– |
– |
6,690 |
Currency translation adjustments |
–17,000 |
–7,896 |
67 |
–36 |
–24,865 |
|
|
|
|
|
|
As of 31 December 2023 |
463,028 |
173,753 |
31,863 |
149,651 |
818,295 |
|
|
|
|
|
|
Accumulated amortisation |
|
|
|
|
|
On 1 January 2023 |
– |
92,976 |
346 |
54,092 |
147,414 |
Amortisation |
– |
19,250 |
171 |
23,278 |
42,699 |
Reclassification from tangible assets 1) |
– |
4,561 |
– |
– |
4,561 |
Currency translation adjustments |
– |
–5,890 |
53 |
–37 |
–5,874 |
|
|
|
|
|
|
As of 31 December 2023 |
– |
110,897 |
570 |
77,333 |
188,800 |
|
|
|
|
|
|
Carrying amount 31 December 2023 |
463,028 |
62,856 |
31,293 |
72,318 |
629,495 |
1) Correction of acquired software for one single entity which was presented in tangible assets in prior year.
in CHF 1,000 |
Goodwill |
Software, acquired technology and customer relationships |
Brand |
Internally generated intangibles |
Total |
|
|
|
|
|
|
Historical cost |
|
|
|
|
|
On 1 January 2022 |
435,658 |
158,261 |
31,881 |
69,072 |
694,872 |
Business acquisitions |
70,617 |
11,323 |
– |
– |
81,940 |
Additions |
– |
4,289 |
– |
34,254 |
38,543 |
Disposals |
– |
–386 |
– |
–1,345 |
–1,731 |
Disposal of subsidiaries |
–18,163 |
–2,863 |
– |
– |
–21,026 |
Currency translation adjustments |
–26,299 |
–5,599 |
–85 |
–23 |
–32,006 |
|
|
|
|
|
|
As of 31 December 2022 |
461,813 |
165,025 |
31,796 |
101,958 |
760,592 |
|
|
|
|
|
|
Accumulated amortisation |
|
|
|
|
|
On 1 January 2022 |
– |
77,267 |
217 |
40,520 |
118,004 |
Amortisation |
– |
19,069 |
216 |
14,845 |
34,130 |
Disposals |
– |
–310 |
– |
–1,269 |
–1,579 |
Disposal of subsidiaries |
– |
–930 |
– |
– |
–930 |
Currency translation adjustments |
– |
–2,120 |
–87 |
–4 |
–2,211 |
|
|
|
|
|
|
As of 31 December 2022 |
– |
92,976 |
346 |
54,092 |
147,414 |
|
|
|
|
|
|
Carrying amount 31 December 2022 |
461,813 |
72,049 |
31,450 |
47,866 |
613,178 |
Internally generated intangible assets relate mainly to SoftwareOne Marketplace Platform, a platform that offers clients a single digital entry point to access and manage their products, services and interactions with SoftwareOne. It combines investments made into Goatpath, and existing capabilities of PyraCloud, into a single unified portal. Technical innovations are capitalised separately in accordance with the component approach if the group expects to obtain a future use from these. The average remaining amortisation period is 1.7 years with a carrying amount of TCHF 19,399 (prior year: TCHF 16,613).
The acquired technology and customer relationships include customer relationships/bases primarily related to the COMPAREX acquisition in 2019. For the customer base of COMPAREX, the remaining amortisation period is 5.1 years with a carrying amount of TCHF 25,841 (prior year: TCHF 32,613).
The brand SoftwareOne was acquired in a business combination. It has been determined to have an indefinite useful life as there is no intention to abandon the brand name. As it has existed for many years, the group can maintain its brand for an indefinite period of time. Thus, the brand name is not amortised but is assessed for impairment annually. As the brand does not generate largely independent cash inflows, it is allocated to the group’s CGUs for goodwill impairment testing as part of corporate assets.
Goodwill and the brand are allocated to four CGU’s as illustrated below:
in CHF 1,000 |
EMEA |
NORAM |
LATAM |
APAC |
Carrying amount |
|
|
|
|
|
|
Goodwill |
388,288 |
27,895 |
38,555 |
8,290 |
463,028 |
Brand |
31,277 |
– |
– |
– |
31,277 |
|
|
|
|
|
|
As of 31 December 2023 |
419,565 |
27,895 |
38,555 |
8,290 |
494,305 |
in CHF 1,000 |
EMEA |
NORAM |
LATAM |
APAC |
Carrying amount |
|
|
|
|
|
|
Goodwill |
400,426 |
15,692 |
36,623 |
9,072 |
461,813 |
Brand |
31,277 |
– |
– |
– |
31,277 |
|
|
|
|
|
|
As of 31 December 2022 |
431,703 |
15,692 |
36,623 |
9,072 |
493,090 |
Impairment test of goodwill and intangibles with indefinite useful life
Regarding impairment testing of goodwill and other intangible assets such as the SoftwareOne brand deemed to have indefinite lives, the group determines the higher of value in use and fair value less costs of disposal of the respective cash generating units to which goodwill and intangibles have been allocated. The calculation of value in use is based on the current budget and business plan approved by the Board of Directors and the expectations regarding the future development of the respective markets, market shares and profitability using also third-party market data. Growth in the operating profit of the cash generating unit is expected up to the end of the detailed planning period of five years. Estimated cash flow for the year after the detailed planning period is based on an annual growth rate. Related assumptions are made considering macroeconomic trends and historical information adjusted for current developments. The annual goodwill impairment test for all CGUs is performed as of 30 September.
The discount rates and annual growth rate as per CGU are as follows:
|
2023 |
2022 |
||||
|
Pre-tax discount rate |
Post-tax discount rate |
Annual growth rate |
Pre-tax discount rate |
Post-tax discount rate |
Annual growth rate |
|
|
|
|
|
|
|
EMEA |
10.5 % |
8.4 % |
1.9 % |
9.8 % |
7.8 % |
2.0 % |
LATAM |
17.0 % |
15.5 % / 11.9 % 1) |
3.0 % |
16.5 % |
15.6 % / 11.1 % 1) |
3.0 % |
APAC |
11.4 % |
9.3 % |
2.4 % |
11.2 % |
9.0 % |
2.4 % |
NORAM |
11.9 % |
9.6 % |
2.1 % |
10.8 % |
8.6 % |
2.1 % |
1) Post-tax discount rate: 15.5 % (prior year: 15.6 %) for the detailed planning period and 11.9 % (prior year: 11.1 %) for the terminal value.
The pre-tax discount rate is calculated based on a country-specific weighted risk-free interest rate as well as the market risk premium and borrowing interest rate. Specific peer group information for beta factors and the debt ratio are also considered.
In order to adequately reflect current interest rates and the long-term inflation forecast, two different discount rates are used for CGU LATAM. For the detailed planning period, the discount rate is based on an average 3-month risk-free interest rate. For the terminal value, the discount rate is calculated taking into account the expected long-term inflation rate plus the spread between the yield on a 10-year bond and a national inflation index.
The recoverable amount of CGU LATAM exceeds the carrying amount by CHF 62.6 million (prior year: CHF 34.8 million) at the end of the reporting period. A change in the projected annual revenue growth (CAGR) during the planning period from the current 14.3% to 5.9% (prior year annual gross profit growth: 19.2% to 14.1%), the revenue/EBITDA ratio from 20.5% to 19.2% (prior year gross profit/EBITDA ratio: 14.4% to 11.8%) or the pre-tax discount rate from 17.0% to 23.0% (prior year: 16.5% to 19.8%) would use up the existing headroom of CGU LATAM.
16 Trade payables, accrued expenses, contract liabilities and other payables
in CHF 1,000 |
2023 |
2022 |
|
|
|
Trade payables |
2,290,475 |
1,915,936 |
Accrued expenses |
101,332 |
94,155 |
– thereof financial liabilities 39,157 (prior year: 25.236) 1 |
|
|
Contract liabilities |
80,302 |
83,313 |
Other payables |
215,849 |
212,156 |
– thereof financial liabilities 15,919 (prior year: 24,000) |
|
|
|
|
|
Current trade payables, accrued expenses, contract liabilities and other payables |
2,687,958 |
2,305,560 |
Other payables |
178,646 |
168,888 |
– thereof financial liabilities 175,074 (prior year: 157,238) |
|
|
|
|
|
Non-current other payables |
178,646 |
168,888 |
|
|
|
Total trade payables, accrued expenses, contract liabilities and other payables |
2,866,604 |
2,474,448 |
1) Thereof financial liabilities 2022 adjusted for accrued expenses in relation with IAS 19 (reduction of TCHF 53,134).
Accrued expenses mainly include obligations to employees not paid at the reporting date, such as bonuses, holiday entitlements or compensations, and accruals related to other operating expenses. Current other payables mainly include VAT and other sales tax-related liabilities.
Contract liabilities include short-term advances received to render services. All contract liabilities as of 1 January 2023 were recognised as revenue in 2023 (TCHF 83,313).
Other non-current payables include TCHF 175,074 non-current trade payables for multi-year contracts (prior year: TCHF 152,851).
17 Provisions
in CHF 1,000 |
Employment- related |
Non-income tax-related |
Earn-out- related |
Other |
Total |
|
|
|
|
|
|
Current provisions |
9,956 |
4,085 |
18,604 |
1,359 |
34,004 |
Non-current provisions |
1,688 |
– |
12,339 |
545 |
14,572 |
|
|
|
|
|
|
Total Provision as of 31 December 2023 |
11,644 |
4,085 |
30,943 |
1,904 |
48,576 |
|
|
|
|
|
|
On 1 January 2023 |
5,333 |
2,633 |
42,308 |
2,755 |
53,029 |
Increase |
8,492 |
3,047 |
16,058 |
1,057 |
28,654 |
Used provisions |
–169 |
– |
–26,385 |
–1,774 |
–28,328 |
Unused amounts released |
–2,090 |
–1,578 |
–489 |
–90 |
–4,247 |
Currency translation adjustments |
78 |
–17 |
–549 |
–44 |
–532 |
|
|
|
|
|
|
As of 31 December 2023 |
11,644 |
4,085 |
30,943 |
1,904 |
48,576 |
Earn-out-related provisions are associated with contingent consideration arrangements that could result in additional cash payments to the previous owners of the acquired companies. They are presented as provisions if they are contingent on continued employment and thus compensation for services. The amount of the earn-out depends on KPI developments for a contractually defined period and, where appropriate, a multiplier derived from other variables. They are recognised as personnel expenses during the period of service.
The earn-out calculations are based on the following KPIs:
Acquired company |
Earn-out relevant KPI |
Cash outflow expected in year |
|
|
|
AppScore |
Revenue |
2024/ 2025/ 2026/ 2027 |
Beniva |
Revenue |
2024/ 2025/ 2026 |
Centiq |
Contribution Margin |
2024/ 2025/ 2026 |
Intelligence Partner |
EBITDA |
2024 |
InterGrupo |
Revenue and EBITDA |
2024 |
ITPC |
Contribution Margin |
2024/ 2025/ 2026 |
ITST |
Contribution Margin |
2024/ 2025/ 2026 |
makeITnoble |
Gross Profit |
2024/ 2025 |
Predica |
Chargeability of delivery resources |
2024/ 2025 |
Satzmedia |
Revenue |
2024 |
SE16N |
Contribution Margin |
2024/ 2025/ 2026 |
18 Financial liabilities
in CHF 1,000 |
2023 |
2022 |
|
|
|
Current |
|
|
Bank overdrafts |
375 |
5,178 |
Contingent consideration liabilities |
5,302 |
6,011 |
Lease liabilities |
13,411 |
14,948 |
Other financial liabilities |
121,173 |
17,040 |
|
|
|
Total current financial liabilities |
140,261 |
43,177 |
|
|
|
Non-current |
|
|
Contingent consideration liabilities |
2,040 |
9,019 |
Lease liabilities |
19,336 |
18,122 |
Other financial liabilities |
3,375 |
45,234 |
|
|
|
Total non-current financial liabilities |
24,751 |
72,375 |
|
|
|
Total financial liabilities |
165,012 |
115,552 |
Revolving credit loan
The group has access to a CHF 660 million (prior year: CHF 660 million) multiple currency revolving credit facility. Of this revolving credit facility, CHF 70 million was drawn as of 31 December 2023 (prior year: CHF 0 million).
Contingent consideration liabilities
The most significant contingent consideration liability relates to the acquisition of Predica. The contingent consideration liability reflects the fair value of the expected payments. These estimates are reviewed at each reporting date and adjusted as necessary. Adjustments are booked in finance income or expenses.
For further information, refer to explanation of 'Level 3' financial instruments in Note 4.3 Categories of financial instruments and fair value estimation.
Changes in liabilities arising from financing activities
|
Changes in financial liabilities |
||||||
in CHF 1,000 |
1 January 2023 |
Business acquisitions |
Financing cash flows |
Foreign exchange movement |
Change in fair value |
Other |
31 December 2023 |
|
|
|
|
|
|
|
|
Bank overdrafts |
5,178 |
– |
–4,549 |
–254 |
– |
– |
375 |
Contingent consideration liabilities |
15,030 |
– |
–2,921 |
–272 |
–895 |
–3,600 |
7,342 |
Lease liabilities |
33,070 |
– |
–17,024 |
–2,002 |
– |
18,703 |
32,747 |
Other current financial liabilities |
17,040 |
36 |
84,202 |
–7,987 |
– |
27,882 |
121,173 |
Other non-current financial liabilities |
45,234 |
– |
–403 |
–3,127 |
– |
–38,329 |
3,375 |
|
|
|
|
|
|
|
|
Total |
115,552 |
36 |
59,305 |
–13,642 |
–895 |
4,656 |
165,012 |
In 2023, the group paid contingent consideration liabilities for the acquisition of Predica (TCHF 2,709) and Intelligence Partner (TCHF 1,128), which is presented in cashflow from investing activities. In addition, SoftwareOne partially repaid receipts from swap contracts in an amount of TCHF 10,447 which is set off against the financial liability, which was initially recorded in 2022 and reclassed from non-current to current financial liabilities in 2023 (TCHF 38,441). The related cashflow was classified as cashflow from investing activities, for further explanations refer to section 4.1 Financial Risk Factors on Liquidity Risk. Further effects in column 'Other' are related to additions, disposals and compounding of lease liabilities (TCHF 18,703) and, to a limited extent, accrued interest.
|
Changes in financial liabilities |
||||||
in CHF 1,000 |
1 January 2022 |
Business acquisitions |
Financing cash flows |
Foreign exchange movement |
Change in fair value |
Other |
31 December 2022 |
|
|
|
|
|
|
|
|
Bank overdrafts |
1,170 |
– |
11,981 |
–7,973 |
– |
– |
5,178 |
Contingent consideration liabilities |
8,644 |
937 |
–2,542 |
–105 |
167 |
7,929 |
15,030 |
Lease liabilities |
38,037 |
– |
–16,368 |
–1,993 |
– |
13,394 |
33,070 |
Other current financial liabilities |
47,206 |
581 |
–26,083 |
334 |
– |
–4,998 |
17,040 |
Other non-current financial liabilities |
4,484 |
12 |
–650 |
–1,089 |
– |
42,477 |
45,234 |
|
|
|
|
|
|
|
|
Total |
99,541 |
1,530 |
–33,662 |
–10,826 |
167 |
58,802 |
115,552 |
In 2022, SoftwareOne paid back the promissory loan (TCHF 35,658). The group paid the deferred purchase price for the acquisition of Centiq (TCHF 5,013) which was presented in cashflow from investing activities. In addition, SoftwareOne recorded a financial liability related to swap contracts for which the cashflow was classified as cashflow from investing activities (TCHF 42,559).
Further effects in column 'Other' were related to the initial recognition of liabilities for the contingent consideration liability for the acquisition of Predica (TCHF 8,750), additions, disposals and compounding of lease liabilities (TCHF 13,394) and, to a limited extent, accrued interest.
In the statement of cash flows the change in financial liabilities is presented on a gross basis.
19 Defined benefit liabilities
The group operates various post-employment schemes including both defined benefit and defined contribution pension plans.
Defined benefit plans
The liability recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. Actuarial gains or losses are recognised in OCI. Service costs are presented in personnel expenses. Interest costs and interest on plan assets are netted in finance costs.
The group’s retirement plans include defined benefit pension plans in Switzerland, Belgium, Germany, Austria, India, Mexico, Ecuador, France, Italy, Turkey, Costa Rica, and Indonesia. These plans, excluding those in Switzerland, Belgium, and Germany, are unfunded and all determined by local regulations using independent actuarial valuations according to IAS 19. The group’s major defined benefit plan in Switzerland accounts for 84.2% (prior year: 81.6%) of the group’s present value of funded and unfunded obligations.
Pension plans in Switzerland
The current pension arrangement for employees in Switzerland is made through a plan governed by the Swiss Federal Occupational Old Age, Survivors and Disability Pension Act (BVG). The plan of SoftwareOne’s Swiss company is administered by a separate legal foundation, which is funded by regular employer and employee contributions defined in the pension fund rules. The Swiss pension plan contains a cash balance benefit which is in essence contribution-based with certain minimum guarantees. Due to these minimum guarantees, the Swiss plan is treated as a defined benefit plan under IFRS Accounting Standards. The plan is invested in a diversified range of assets in accordance with the investment strategy and the common criteria of an asset and liability management. A potential underfunding may be remedied by various measures such as increasing employer and employee contributions or reducing future benefits.
As of 31 December 2023, 345 employees (prior year: 346 employees) and no retiree (prior year: no retiree) are insured under the Swiss plan. The defined benefit obligation has a duration of 17 years (prior year: 15 years).
Amounts recognised in the balance sheet:
in CHF 1,000 |
Swiss plan |
Other plans |
2023 |
2022 |
|
|
|
|
|
Present value of funded obligations |
57,800 |
5,423 |
63,223 |
58,779 |
Fair value of plan assets |
–54,626 |
–4,460 |
–59,086 |
–57,442 |
Present value of unfunded obligations |
– |
5,430 |
5,430 |
5,343 |
|
|
|
|
|
Total defined benefit liabilities |
3,174 |
6,393 |
9,567 |
6,680 |
Reconciliation of the present value of the defined benefit obligation (DBO):
in CHF 1,000 |
Swiss plan |
Other plans |
2023 |
2022 |
|
|
|
|
|
On 1 January |
52,316 |
11,806 |
64,122 |
81,896 |
Service costs |
4,129 |
1,368 |
5,497 |
5,477 |
Employee contribution |
2,620 |
– |
2,620 |
2,251 |
Interest cost |
1,024 |
434 |
1,458 |
474 |
Actuarial losses/(gains) |
2,343 |
–464 |
1,879 |
–17,081 |
Benefits paid/transferred |
–4,632 |
–1,535 |
–6,167 |
–7,688 |
Other |
– |
– |
– |
–510 |
Currency translation adjustments |
– |
–756 |
–756 |
–697 |
|
|
|
|
|
As of 31 December |
57,800 |
10,853 |
68,653 |
64,122 |
Reconciliation of fair value of plan assets:
in CHF 1,000 |
Swiss plan |
Other plans |
2023 |
2022 |
|
|
|
|
|
On 1 January |
52,074 |
5,368 |
57,442 |
68,535 |
Interest income |
1,040 |
150 |
1,190 |
335 |
Return on plan assets (excluding interest income) |
904 |
–196 |
708 |
–8,220 |
Employer contributions |
2,620 |
498 |
3,118 |
2,763 |
Employee contributions |
2,620 |
– |
2,620 |
2,251 |
Benefits paid/transferred |
–4,632 |
–1,095 |
–5,727 |
–7,011 |
Other |
– |
– |
– |
–889 |
Currency translation adjustments |
– |
–265 |
–265 |
–322 |
|
|
|
|
|
As of 31 December |
54,626 |
4,460 |
59,086 |
57,442 |
Pension costs:
in CHF 1,000 |
Swiss plan |
Other plans |
2023 |
2022 |
|
|
|
|
|
Current service cost |
4,129 |
1,368 |
5,497 |
5,477 |
Interest cost on defined benefit obligation |
1,024 |
434 |
1,458 |
474 |
Interest on plan assets |
–1,040 |
–150 |
–1,190 |
–335 |
|
|
|
|
|
Total defined benefit cost recognised in income statement |
4,113 |
1,652 |
5,765 |
5,616 |
Thereof finance expense |
–16 |
284 |
268 |
139 |
Thereof personnel expense |
4,129 |
1,368 |
5,497 |
5,477 |
|
|
|
|
|
Actuarial (gain)/loss arising from demographic assumptions |
– |
–325 |
–325 |
–136 |
Actuarial (gain)/loss arising from changes in financial assumptions |
2,569 |
–274 |
2,295 |
–13,975 |
Actuarial (gain)/loss arising from experience |
–226 |
135 |
–91 |
–2,970 |
Return on plan assets excluding interest income |
–904 |
196 |
–708 |
8,220 |
|
|
|
|
|
Total remeasurements cost recognised in OCI |
1,439 |
–268 |
1,171 |
–8,861 |
|
|
|
|
|
Total defined benefit cost |
5,552 |
1,384 |
6,936 |
–3,245 |
Split of plan assets in %:
|
Swiss plan |
Other plans |
2023 |
2022 |
|
|
|
|
|
Cash and cash equivalents |
0.9 % |
– |
0.8 % |
1.6 % |
Equity instruments |
36.8 % |
– |
34.0 % |
32.9 % |
Debt instruments |
40.8 % |
– |
37.7 % |
36.0 % |
Real estate |
19.6 % |
– |
18.1 % |
18.2 % |
Other |
1.9 % |
100.0 % |
9.4 % |
11.3 % |
|
|
|
|
|
Total |
100.0 % |
100.0 % |
100.0 % |
100.0 % |
The actual return on plan assets amounted to TCHF 1,898 (prior year: TCHF –7,885).
Significant actuarial assumptions:
|
Swiss plan |
Other plans |
2023 |
2022 |
|
|
|
|
|
Discount rate |
1.5 % |
4.3 % |
1.9 % |
2.2 % |
Salary growth rate |
1.0 % |
4.2 % |
1.5 % |
1.5 % |
Pension liability – Sensitivity analysis for Swiss plans:
|
Change in assumption |
Change in DBO 2023 |
Change in DBO 2022 |
|
|
|
|
Discount rate |
+/– 0.25bps |
–/+ 4.3 % |
–/+ 4.2 % |
Salary growth rate |
+/– 0.25bps |
+/– 0.8 % |
+/– 0.7 % |
The above sensitivity analyses are based on a change in one assumption while holding all other assumptions constant. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognised within the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Defined contribution plans
Contributions are recognised as employee benefit expenses when they are due. Prepaid contributions are recognised as an asset.
Expected employer contributions to post-employment benefit plans for the period ended 31 December 2023 amounted to TCHF 2,650 (prior year: TCHF 2,177).
20 Leases
Group as a lessee
The group leases various offices, cars, and IT equipment under non-cancellable lease agreements. Most lease agreements are renewable at market rate at the end of the lease period. Unless the group is reasonably certain of obtaining ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. The useful life is as follows:
- Buildings: max. 10 years
- Vehicles: max. 5 years
- Other equipment: max. 5 years
The group applies the short-term lease recognition exemption to its short-term leases of other machinery and equipment (these are those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value (in other words below TCHF 5). Lease payments on short-term leases and leases of low-value assets are recognised as expenses on a straight-line basis over the lease term.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
in CHF 1,000 |
Buildings |
Vehicles |
Other equipment |
Total |
|
|
|
|
|
Historical cost |
|
|
|
|
On 1 January 2023 |
44,137 |
19,621 |
138 |
63,897 |
Additions |
12,372 |
4,929 |
1,758 |
19,059 |
Disposals |
–4,808 |
–5,332 |
–12 |
–10,152 |
Currency translation adjustments |
–2,866 |
–1,169 |
82 |
–3,953 |
|
|
|
|
|
As of 31 December 2023 |
48,835 |
18,049 |
1,966 |
68,851 |
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
On 1 January 2023 |
21,198 |
10,692 |
20 |
31,910 |
Additions |
10,111 |
5,110 |
645 |
15,866 |
Disposals |
–4,294 |
–5,092 |
–12 |
–9,398 |
Impairment 1) |
1,052 |
– |
– |
1,052 |
Currency translation adjustments |
–1,407 |
–641 |
26 |
–2,022 |
|
|
|
|
|
As of 31 December 2023 |
26,660 |
10,069 |
679 |
37,408 |
|
|
|
|
|
Carrying amount 31 December 2023 |
22,175 |
7,980 |
1,287 |
31,443 |
1) Related to non-cancellable lease contracts for the closing of offices within segment EMEA.
in CHF 1,000 |
Buildings |
Vehicles |
Other equipment |
Total |
|
|
|
|
|
Historical cost |
|
|
|
|
On 1 January 2022 |
45,965 |
20,560 |
1,630 |
68,156 |
Additions |
12,192 |
4,791 |
125 |
17,108 |
Disposals |
–11,668 |
–4,544 |
–1,565 |
–17,777 |
Currency translation adjustments |
–2,352 |
–1,186 |
–52 |
–3,590 |
|
|
|
|
|
As of 31 December 2022 |
44,137 |
19,621 |
138 |
63,897 |
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
On 1 January 2022 |
20,142 |
9,898 |
1,249 |
31,289 |
Additions |
10,280 |
5,581 |
373 |
16,234 |
Disposals |
–8,056 |
–4,204 |
–1,564 |
–13,824 |
Currency translation adjustments |
–1,168 |
–583 |
–38 |
–1,789 |
|
|
|
|
|
As of 31 December 2022 |
21,198 |
10,692 |
20 |
31,910 |
|
|
|
|
|
Carrying amount 31 December 2022 |
22,939 |
8,929 |
119 |
31,987 |
Set out below are the carrying amounts of lease liabilities (included under interest bearing loans and borrowings) and the movements during the period:
in CHF 1,000 |
2023 |
2022 |
|
|
|
On 1 January |
33,070 |
38,037 |
Additions |
18,577 |
17,070 |
Disposals |
–827 |
–4,177 |
Accretion of interest |
953 |
501 |
Payments |
–17,024 |
–16,368 |
Currency translation adjustments |
–2,002 |
–1,993 |
|
|
|
As of 31 December |
32,747 |
33,070 |
The following are the amounts recognised in the income statement:
in CHF 1,000 |
2023 |
2022 |
|
|
|
Depreciation expenses on right-of-use assets (including impairment) |
–16,918 |
–16,234 |
Interest expenses on lease liabilities |
–953 |
–501 |
Expenses relating to short-term leases (included in other operating expenses) |
–1,056 |
–2,342 |
Income from subleasing of right-of-use assets |
327 |
409 |
Income from operating lease contracts |
783 |
– |
|
|
|
Total |
–17,817 |
–18,668 |
In 2023, the group had total cash outflows for leases including expenses relating to short-term leases of TCHF 18,080 (prior year: TCHF 18,710).
23 Dividends
The dividends paid in 2023 were TCHF 54,315 or CHF 0.35 per share (prior year: TCHF 51,109 or CHF 0.33 per share). A dividend in respect of the period ended 31 December 2023 of CHF 0.36 per share (excluding treasury shares), amounting to a total dividend of TCHF 57,089, is to be proposed at the Annual General Meeting on 18 April 2024. These financial statements do not reflect this proposed dividend. Dividends are paid out of the capital contribution reserve of SoftwareOne Holding AG.
25 Contingencies
As an internationally operating group, SoftwareOne is exposed to contingencies in respect of legal and tax claims in the ordinary course of business. It is not anticipated that any material liabilities will arise from the contingent liabilities.
In 2016, the Federal Revenue Office in São José dos Campos (‘DRF/SJC’) issued an infraction notice against SoftwareOne Brazil for the fiscal year 2012, levying alleged debts related to sales tax contributions (‘PIS/COFINS’), charging the difference between the non-cumulative system (9.25%) and the cumulative system (3.65%). The value in dispute of the infraction notice was BRL 9.1 million (CHF 1.6 million) excluding penalty and interest. As expected, in July 2017, the administrative appeal against this infraction notice was rejected. Thus, SoftwareOne Brazil has filed a further appeal before the Administrative Tax Appeal Court (‘CARF’), which was decided unfavourably at CARF level in October 2021, and SoftwareOne was notified to file the appeal. After the notification of the CARF decision, the company filed a motion of clarification against this decision in October 2022. In December 2023, this motion of clarification was denied and SoftwareOne was notified to present a special appeal against the second level decision which was filed in 12 February 2024. SoftwareOne is currently awaiting the judgment of the special appeal. In 2020, The Federal Revenue Office issued a further infraction notice against SoftwareOne Brazil for the fiscal year 2017 for the same subject mentioned above. The value in dispute of the infraction notice was BRL 19.9 million (CHF 3.5 million) excluding penalties and interest. Thus, SoftwareOne Brazil filed a further appeal before CARF against this infraction notice, which was rejected in July 2021. SoftwareOne submitted an action for annulment at court level in November 2021 secured by a litigation bond. Nevertheless, SoftwareOne Brazil and SoftwareOne group are still of the opinion that the cumulative system was and continues to be correctly applied in line with industry standards and are defending their position for both fiscal years 2012 and 2017 with the support of third-party lawyers. Although the probability of the outcome of the dispute cannot be reliably predicted at this stage, SoftwareOne does not expect any cash outflow for the litigations at the reporting date.
In 2019, the National Tax Administration Superintendence (‘SUNAT’) in Lima issued an Infraction Notice against SoftwareOne Peru for the fiscal year 2016, levying alleged debts related to withholding taxes (‘Impuesto a la Renta de no Domiciliados’ – IRND), charging the not contributed withholding taxes related to Software Assurance for payments made abroad. The value in dispute of the Infraction Notice was PEN 5.4 million (CHF 1.2 million) excluding penalty and interest. According to Resolution 042-2014-SUNAT/5D0000 from 2014, licenses purchased abroad are not subject to withholding taxes, whereas services are subject to withholding tax contribution. In June 2020, the administrative appeal (2nd SUNAT instance) against this infraction notice was rejected. Nevertheless, SoftwareOne Peru and the group are still of the opinion that the non-contribution of withholding taxes was and continues to be correctly applied as Software Assurance is defined as licensing and not services in line with the industry standard and is defending its position with the support of third-party lawyers. SoftwareOne Peru therefore filed a further appeal before the administrative tax court (‘Tribunal Fiscal’), the last administrative instance, in July 2020, which ruled in favour of SoftwareOne Peru in January 2021. SUNAT took the right to appeal the decision before the civil court in May 2021. Although the probability of the outcome of the dispute cannot be reliably predicted at this stage, SoftwareOne does not expect any cash outflow for the litigation at the reporting date.
Related to an ongoing tax audit SoftwareOne is potentially exposed to a liability claim for which SoftwareOne is jointly liable for an amount up to a maximum of CHF 4.0 million. The potential liability still needs to be properly assessed building on the outcome of the tax audit. In addition, SoftwareOne’s final obligation will depend on the share of the tax liability borne by the original debtors. Based on the current assessment SoftwareOne expects most of the potential claim to be settled by the original debtors.
26 Related party transactions
Key management includes members of the Board of Directors and members of the Executive Board (CEO, CFO, CHRO, President of Software & Cloud and until 31 October 2023 the President of Sales). Transactions with and the compensation paid or payable to key management for employee services is shown below.
in CHF 1,000 |
2023 |
2022 |
|
|
|
Services rendered (Board of Directors) |
–975 |
–1,000 |
Share-based payment expenses (Board of Directors) |
–575 |
–596 |
Salaries and other short-term employee benefits |
–8,043 |
–5,088 |
Share-based payment expenses (Executive Board) |
–1,800 |
–2,693 |
Post-employment benefits |
–470 |
–351 |
|
|
|
Total |
–11,863 |
–9,728 |
27 Segment reporting
For management purposes, SoftwareOne is organised by geographical areas. The following regional clusters are the group’s operating segments:
- EMEA (Europe, including Mauritius and South Africa);
- NORAM (USA, Canada);
- LATAM (Latin America);
- APAC (Asia Pacific, including Dubai and Qatar).
No operating segments have been aggregated to reportable segments.
The CEO is the Chief Operating Decision Maker (CODM). He assesses each of the reported segments separately for the purpose of evaluating performance and allocating resources. Total revenue, contribution margin and EBITDA are the key performance indicators used for internal management and monitoring purposes of the group and are reported as segment results. The group allocates revenue and expenses to regions based on the customer’s headquarter domicile since the region is responsible for the global client relationship. There are no intersegment revenues. Different average exchange rates are used in management reporting than for group consolidation purposes.
The segment reporting presents a breakdown of total revenue, directly attributable delivery costs, and indirectly attributable other operating costs such as sales and marketing costs as well as general and admin costs. The group’s financing (including finance income and finance costs) and income taxes are managed on a group basis and are not allocated to the operating segments.
The segment totals are reconciled to the figures reported in the consolidated income statement (column 'Total') as follows:
The column 'Group' includes the group cost centres and shared services costs. The column 'FX & Consolidation' eliminates the effect of using differing average foreign exchange rates in the segment reporting and consolidation effects. The column 'Other' includes other reconciling items that are not allocated to the segments and group internal reporting. They consist of costs affecting comparability in operating expenses such as integration expenses, M&A and earn-out expenses, restructuring expenses for the operational excellence programme and the MTWO business, one-time expenses for the strategic review and an adjustment for the upfront recognition of multi-year licensing contracts in which the end customer has the right to change the software reseller during the contract term. Additionally, the column 'Other' includes an adjustment for differences in accounting policies of IFRS 16 that are not reflected in the segments, an allocation of internal delivery costs to transition from the internal to the external reporting structure and, to a limited extent minor reconciliation items.
In 2023, the group made a change in presentation for bad debts provisions to align the internal and external reporting structure. In the prior year, bad debt provisions were presented in total revenue in internal reporting but in operating expenses in the consolidated income statement. The comparative period was restated.
Segment disclosure 2023
in CHF 1,000 |
EMEA |
NORAM |
LATAM |
APAC |
Total segments |
Group |
FX & Consoli- dation |
Other incl. allocation of delivery costs |
Total |
|
|
|
|
|
|
|
|
|
|
Total revenue |
609,786 |
149,120 |
99,692 |
144,317 |
1,002,915 |
5,275 |
1,428 |
1,671 |
1,011,289 |
Delivery costs |
–201,492 |
–46,582 |
–49,406 |
–49,447 |
–346,927 |
14 |
–28 |
346,941 |
n/a |
|
|
|
|
|
|
|
|
|
|
Contribution margin 1) |
408,294 |
102,538 |
50,286 |
94,870 |
655,988 |
5,289 |
1,400 |
348,612 |
n/a |
Other operating costs |
–176,655 |
–55,946 |
–42,156 |
–45,666 |
–320,423 |
–108,599 |
–1,031 |
–419,512 |
–849,565 |
|
|
|
|
|
|
|
|
|
|
EBITDA 2) |
231,639 |
46,592 |
8,130 |
49,204 |
335,565 |
–103,310 |
369 |
–70,900 |
161,724 |
1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.
2) EBITDA from additional business lines view reconciled to earnings before net financial items, taxes, depreciation and amortisation.
The most relevant reconciliation items in the column ‘Other’ were related to one-time costs and accounting related adjustments:
in CHF 1,000 |
Integration, M&A and earn-out expenses |
Restruc- turing expenses |
One-time expenses strategic review |
Restruc- turing MTWO business |
IFRS 15 upfront revenue recognition |
IFRS 16 leases |
Allocation of delivery costs |
Remaining |
Total Other |
|
|
|
|
|
|
|
|
|
|
Total revenue |
– |
– |
– |
– |
236 |
– |
– |
1,435 |
1,671 |
Delivery costs |
– |
– |
– |
– |
– |
– |
347,612 |
–671 |
346,941 |
|
|
|
|
|
|
|
|
|
|
Contribution margin 1) |
– |
– |
– |
– |
236 |
– |
347,612 |
764 |
348,612 |
Other operating costs |
–23,051 |
–39,333 |
–15,874 |
–5,724 |
–10 |
17,024 |
–347,612 |
–4,932 |
–419,512 |
|
|
|
|
|
|
|
|
|
|
EBITDA 2) |
–23,051 |
–39,333 |
–15,874 |
–5,724 |
226 |
17,024 |
– |
–4,168 |
–70,900 |
1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.
2) EBITDA from additional business lines view reconciled to earnings before net financial items, taxes, depreciation and amortisation.
Segment disclosure 2022
in CHF 1,000 |
EMEA |
NORAM |
LATAM |
APAC |
Total segments |
Group |
FX & Consoli- dation |
Other incl. allocation of delivery costs |
Total |
|
|
|
|
|
|
|
|
|
|
Total revenue 1) |
590,174 |
159,034 |
104,757 |
126,424 |
980,389 |
4,491 |
–2,181 |
–6,868 |
975,831 |
Delivery costs 1) |
–202,063 |
–47,557 |
–51,570 |
–41,805 |
–342,995 |
–6,451 |
3,171 |
346,275 |
n/a |
|
|
|
|
|
|
|
|
|
|
Contribution margin 2) |
388,111 |
111,477 |
53,187 |
84,619 |
637,394 |
–1,960 |
990 |
339,407 |
n/a |
Other operating costs |
–174,840 |
–54,802 |
–35,602 |
–43,712 |
–308,956 |
–97,229 |
–537 |
–432,195 |
–838,917 |
|
|
|
|
|
|
|
|
|
|
EBITDA 3) |
213,271 |
56,675 |
17,585 |
40,907 |
328,438 |
–99,189 |
453 |
–92,788 |
136,914 |
1) Prior-year figures restated, refer to Note 2 Correction of errors.
2) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.
3) EBITDA from additional business lines view reconciled to earnings before net financial items, taxes, depreciation and amortisation.
The most relevant reconciliation items in the column ‘Other’ were related to one-time costs and accounting related adjustments:
in CHF 1,000 |
Integration, M&A and earn-out expenses |
Restruc- turing expenses |
Share- based payment expenses |
One-time expenses Russia & Ukraine 3) |
IFRS 15 upfront revenue recognition |
IFRS 16 leases |
Allocation of delivery costs |
Remaining |
Total Other |
|
|
|
|
|
|
|
|
|
|
Total revenue |
– |
– |
– |
– |
–6,922 |
– |
– |
54 |
–6,868 |
Delivery costs |
– |
– |
– |
– |
– |
– |
346,346 |
–71 |
346,275 |
|
|
|
|
|
|
|
|
|
|
Contribution margin 1) |
– |
– |
– |
– |
–6,922 |
– |
346,346 |
–17 |
339,407 |
Other operating costs |
–44,287 |
–13,142 |
–4,888 |
–35,214 |
318 |
16,368 |
–346,346 |
–5,004 |
–432,195 |
|
|
|
|
|
|
|
|
|
|
EBITDA 2) |
–44,287 |
–13,142 |
–4,888 |
–35,214 |
–6,604 |
16,368 |
– |
–5,021 |
–92,788 |
1) Total revenue net of third-party service delivery costs and directly attributable internal delivery costs.
2) EBITDA from additional business lines view reconciled to earnings before net financial items, taxes, depreciation and amortisation.
3) One-time expenses Russia & Ukraine include the loss on disposal for the sale of SoftwareOne Russia (TCHF -29,655), additional bad debts in connection with clients in Russia (TCHF -3,537) and further one-time expenses (TCHF -2,022).
Additional information for business lines
Even if the regions are the operating segments, SoftwareOne internally also reports total revenue, contribution margin and EBITDA by business lines 'Software & Cloud Marketplace', 'Software & Cloud Services' and 'Corporate', which includes non-operational group costs, to the CODM.
The business line view presents a breakdown of total revenue, directly attributable delivery costs, and indirectly attributable other operating costs such as sales and marketing costs as well as general and admin costs.
The column 'Adjustments' includes costs affecting comparability in operating expenses and are therefore adjusted in internal reporting and an adjustment for the upfront recognition of multi-year licensing contracts in which the end customer has the right to change the software reseller during the contract term. In contrast to the segment reporting, the IFRS 16 adjustment and minor reconciliation items are allocated to the business lines 'Software & Cloud Marketplace' and 'Software & Cloud Services'.
Business line view 2023
in CHF 1,000 |
Software & Cloud Marketplace |
Software & Cloud Services |
Corporate |
Total business unit |
Adjustments |
Allocation of delivery costs |
Total |
|
|
|
|
|
|
|
|
Total revenue |
549,750 |
461,154 |