SNP Schneider Neureither & Partner SE Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Wolfgang Specht - Berenberg, Gossler & Co. KG - Analyst : Okay. Thanks a lot. Congrats, definitely stronger than I expected it. Let's look out a little bit into the quarters to come. Can you give us some information if you see, for example, a change in the project structure or the tasks you are now confronted with in new projects? Is there anything changing now that more customers, let's say, are late migrators to HANA? Or is it basically the same you did with the early starters two years ago? That would be of interest. And then probably regarding workforce and related costs, obviously, you're holding a huge order book. Is there, let's say, a timeline that forces you to ramp up personnel or external capacities, let's say, immediately? Or is it, let's say, a glide path you're ramping up here?

Question: Wolfgang Specht - Berenberg, Gossler & Co. KG - Analyst : Okay. Thanks a lot.

Question: Hannes Mueller - Warburg Research GmbH - Analyst : Yes, hello. Thank you for taking my questions. First one would be maybe on the drivers currently, especially in Europe, so maybe which sectors are strong at the moment where you see demand? SNP seems to be one of the few IT companies that are holding up in the current environment. So it would be interesting to the drivers behind that. And then maybe can you share the share of software in the latest projects, also the bigger projects and what would be a good share of software, for example, in a project. And then on the margin, would you say that you expect a lower margin next year than in 2024, given the one-offs you had, the positive one-offs? Or do you still expect margin expansion given that? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 1:00PM, SHFG.DE - Q3 2024 SNP Schneider Neureither & Partner SE Earnings Call

Question: Hannes Mueller - Warburg Research GmbH - Analyst : Okay, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 1:00PM, SHFG.DE - Q3 2024 SNP Schneider Neureither & Partner SE Earnings Call

Question: Uwe Schupp - APUS Capital GmbH - Analyst : Yes, hi there. Sorry, I didn't put it in my name there. My name is Uwe Schupp from APUS Capital. I am here for Johannes, please. Just a couple of points, please. First of all, I mean, these are certainly outstanding results, I would say, as some of my earlier colleagues have already stated. If you had to pin down your performance -- I don't know, two or three key points because every other IT service company pretty much we look at between Oslo and Rome has profit [warned]. You have also a profit warned, but to the upside and not only once but twice. So what is it that you are making different than others? I get it you are not in the box shifting business obviously, and you're not shifting computers from Taiwan to Munich or Stuttgart. But still, your customers are pretty much the same as many of the other companies that we all know. So a bit of a general question, I get it. But it would be helpful, I guess, for many of us, if you could just try to explain as to what you are doing different? And what are the tailwinds you're seeing there? Thanks. And I have a follow-up question as well.

Question: Uwe Schupp - APUS Capital GmbH - Analyst : Very clear. That's helpful. Just on the industrial weakness that we are seeing in the second half year, particularly in Germany and in particular, also on the automotive side with pretty much every OEM out there, profit [warning]. Is that a particularly high customer group for you guys?

Question: Uwe Schupp - APUS Capital GmbH - Analyst : That's very clear. Brings me directly to my next point, whether it's in the local press in the Heidelberg area or whether it's in the trade press. But from time to time, we are seeing about potential changes in your shareholder structure. My question would be not so much whether that's happening today or tomorrow, but what is the -- how many questions are you getting from your sales guys? And how distracted is your workforce getting by this? How distracted are you yourself getting by all this? Or is it not a topic at all?

Question: Uwe Schupp - APUS Capital GmbH - Analyst : Got it. And then the last point would be on, I guess, the war for talent. I mean, Heilbronn is becoming gradually -- at least tries to become the AI hub of Germany, if you will. We know generally, your area -- I mean, even SAP is obviously -- I'm not sure on a net basis, but certainly, they are looking for good talent also probably from your company. I was just wondering how difficult it is to retain talent in a very dynamic environment, certainly on your and your partner's side?

Question: Uwe Schupp - APUS Capital GmbH - Analyst : That's great. My last question would be on the balance sheet. On the long-term asset side, you still have the -- I don't know, is it EUR6.3 million, I believe, trade receivables, which are there, so long-term receivables. Basically, any chance you're getting this in Q4? And sorry if you mentioned it in your prepared remarks because I was slightly late on the call.

Question: Uwe Schupp - APUS Capital GmbH - Analyst : That's very clear. Thank you very much.

Question: Yannik Siering - Stifel Financial Corp. - Analyst : Yes, thank you, and thanks for taking my questions. Most of them were already asked. I would just have one topic left, and that's on the LatAm segment. You mentioned that you're refocusing basically on the core business, I think you said. Maybe you could expand a little bit on that? And then in the past or probably also still today, this still functions as a nearshoring hub for the US market. Could you maybe talk about any expected impact under the new government in the US? Maybe also for the domestic market in the US, if you expect any impact basically here? That would be helpful. Thanks.

Question: Yannik Siering - Stifel Financial Corp. - Analyst : Okay. That's good to hear. Thanks.