Thank you very much, and a warm welcome to our Q1 conference call. My name is Jürgen Hermann. I am the CEO of the company, and with me, like always, is Arne Thull, our Head of Investor Relations and responsible for M&A. Ladies and gentlemen, we had a good start this year. Why? First, compared to Q1 last year, we grew by 10% in revenues. Secondly, EBITDA increased to EUR 0.7 million, and it proves the sustainability of our break even that we achieved in Q4 last year. Thirdly, very important from my point of view, year to date, our order entry sums up to EUR 96 million, which is after four months, already 60% of the order entry we recorded for the full year 2020. In detail. On page three, you can see the increase of revenues and EBITDA.
It's very important to mention again that each and every EUR in revenue growth is paying in our profitability. The EUR 3.4 million additional revenues leads to EUR 1.8 million additional EBITDA. Not to forget that 76% of revenues is recurring actually, 68% of revenues is coming from our main sectors, retail, manufacturing and energy. Let's have a few on the segments. First Cloud and IoT segment. The main drivers of growth in this segment is cloud solutions and digital workplace. Yes, I'm convinced that this is only the starting point driven by the pandemic situation. I'm sure that we are always in the beginning of equipping digital workplaces for the German Mittelstand. The segment margin in this segment rises to 10%. Just to add that, last year we achieved 7.6%, the target for next year is 18%-20%. We are on track.
Coming to our second segment on page five, SAP. Yes, SAP segment grew as well, but not as much as the cloud and IoT segment. This is mainly to do with the fact that we still have restrictions on the consulting business that takes place on the customer premises. Although important to mention that the margin in this area rises to 13%. Last year, we achieved 6.8%, and the target for next year is 14%-15%. Main reasons for this increase in profitability is higher efficiency in a certain way, less travel costs and more S/4HANA projects. On the next slide, you can see the sum of both segments. Segment margin, our definition includes everything apart from general and administrative expenses, which were EUR 4 million for the first quarter this year. A number, by the way, that is representative for the full year.
In a nutshell, our business model is scalable. We, in a certain way, just have to grow, and we will reach our targets. Let's have a look at the full profit and loss statement. We can see compared to the first quarter last year, that we improved in all figures. I want to highlight that the segment contribution in absolute figures was nearly doubled from EUR 2.2 million to EUR 4.1 million. With the fact that administrative expenses are at a stable level, this is the basis for the improvement of EBITDA, EBIT, and net income at the very bottom line. Snapshot of our balance sheet on page eight. Solid equity ratio and EUR 40.4 million net cash as of end of March.
Including our plan to be free cash flow break even in Q4 this year, we have full financing flexibility, especially for M&A transactions to come. The next chart is my favorite chart, let's put this way, to demonstrate the five cornerstones of our growth strategy. Our attractive core business with, as mentioned, 70.6% recurring revenues. Our platform-based innovations for the time being small in revenues, but the future beyond 2022. A clear sector focus with retail, manufacturing, and energy. Since a few days with a fourth sector, logistics. The management team and performance-based culture and M&A as mentioned. Let's come to this fourth focus sector. Last week we launched this and the driver is our cooperation with Röhlig Logistics. There are two new companies.
One is a new subsidiary that will offer the full portfolio of services expected of an IT service provider for this segment. From consulting for the CargoWise logistic solutions, the SAP modules, BI, BW finance, and of course the full operation of global cloud infrastructures and data integration services to a global 24/7 help desk. The second part is the investment in a logistic software specialist. Here we are looking for, among other aspects, to provide digital solutions for tracking consignments and for setting quotas, making entries and handling payments. A very innovative area, we all know that logistics is a sector that is still not very digitized. Yeah, the partner, as mentioned, is Röhlig Logistics, which is an international owner-operated specialist for intercontinental sea freight, air freight and contract logistics, which has more than 2,200 employees in 150 offices in 35 countries.
This is only possible to enter this sector with the combination. We have the IT competence and Röhlig Logistics has, in a certain way, the sector knowledge. With that, we are happy that Röhlig itself is our customer, as mentioned, with a two million order entry that we signed. A five-year contract with the elements that you can see on this page. Next page, order entry. You know that figure that is quite important for future growth. Of course, Röhlig, with its mid double-digit million volume, was a driver for the €96 million new orders, there were others as well. In any case, it is an extraordinarily good start in a new year, and a very good basis for ongoing strong and profitable growth. With this good start, of course, we confirm our guidance.
We expect revenues to rise to EUR 160 million to EUR 170 million this year with an EBITDA in the area of EUR 5 million to EUR 10 million and a free cash flow of minus EUR 10 million to minus EUR 5 million. Not to forget, to become positive free cash flow from Q4 2021 onwards sustainably. As mentioned, M&A is a cornerstone of our growth strategy. We still have three aspects in focus. One is to extend and to support our existing product portfolio. The second one is to invest in unique technologies. The third one is to extend our markets, like Röhlig we did last week, to expand our strong position in focus sectors. Next page. Recently, we published our first DNK compliant sustainability report. With that, we even mentioned a clear target to become climate neutral by 2025.
Ladies and gentlemen, for anyone wishing to halt climate change and cut emissions, there's no alternative from our point of view to digital solutions and digitalization at all. This digitization and sustainability are two sides of the same coin, and with that, part of our future. Yes. Our Growth Strategy 2020 plus is on track. Even today, we are working on the basis for growth beyond 2022, especially with platform-based innovations. You can see our targets that we now published two years ago, when we sold our telco business, and so far, as mentioned, we are on track. With that, I'm happy to take your questions.
Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. In case you wish to cancel your question, press nine and star again. The first question comes from Jonas Blum, Warburg Research. Please go ahead with your question.
Yeah, good afternoon, and thank you for taking the questions. I got three, please. Firstly, I was wondering around the logistics market that you are now also targeting with your services. Is that something that you already baked into your midterm targets? Sorry if you have to repeat this now because I had some technical difficulties with the call. Should we think of it as potential upside to its current midterm targets year out? Second, please, since you changed the wording slightly around your 2021 guidance in terms of the pandemic impact from Q2 to Q3, in terms of the obstacles related to the pandemic. I was just wondering if that's something that we should consider as, well, you basically expecting to end up the year at the lower end of the guidance, or is it basically neutral?
Just finally around your SAP business, I mean, you were talking about the variable margin contribution, which is basically a result of two factors, one, less travel, and two, the improved cost structure. Just wondering again here if you could quantify those two metrics. Thanks a lot.
Yeah. Thank you very much for the questions. Concerning logistics or the new segment, it's pretty the same like the others that we are already targeting. We are always questioning ourselves if this is a sector that we know where we have a certain experience or we have a partner that helps us to be successful on one hand. Secondly, is it a sector that is, let's say, with a low level of digitization, with huge challenges concerning the years to come. Definitely, logistics is in that area like the other partners. Of course, we would not have entered this sector without a strong partner like Röhlig, because this would be a real greenfield approach. With this partner, I think we are well prepared to be successful. Concerning the mid-time targets, this is part of our numbers that we announced already.
Concerning our wording, actually, I do not have the idea that we changed the wording or any obstacles. We always said that there's a certain impact concerning SAP consulting, especially the area where we are not able to enter the customer premises, which is still the case as mentioned. Apart from that, I think there is no impact and therefore there is the full commitment to our guidance this year. Concerning SAP, you are right, we mentioned more S/4HANA projects. We mentioned less travel costs, we mentioned higher efficiency, especially by, let's say, improve our mixture of internal and external employees. That's it so far. More detailed numbers, the competitors would be happy to get them, we will not disclose them for the time being.
Great. Very helpful. Thanks.
At the moment, there seem to be no further questions. If you would like to ask a question, please press nine and star on your telephone keypad. We have one more question coming up from Yannick Stiefel. Please go ahead with your question.
Yeah. Thank you very much. I would just have one additional question, and that would be if you could provide an update on the planned sale of the colocation business, please.
Yes. Thanks, Yannick. I'm looking to Arne. I think we have now all things closed so far. The entity is there. I'm sure that we will very soon can give further information to the market that now the process has started officially, and still the plans are in time now to start the process and maybe to close if this is the option that we will choose. Of course, there are other strategic options, but the sale of the business is our preferred solution. If it will happen, I think it is most likely to be closed in the third quarter this year. Everything's on plan, Yannick.
Great. Thank you very much.
We have one more question from Sebastian Weidner, Montega. Please go ahead with your question.
Yes. Thank you for taking my question. I have two left. The first one is, you said that currently the extension of your competence in the enterprise software business is an important topic. Which applications are you currently focusing on? The second one is, what were the main drivers for the order intake of EUR 28.8 million in Q1 being lower than in any quarter in 2020?
The first one concerning new enterprise solutions, the new ones is maybe linked to our, we call it internally, Expect the next portfolio. Here we are focusing on the sale of our StoreButler, our solution for the retail area, which provides our customers with, let's say, a digital solution for their stores. Secondly, concerning the Agizer. Yeah, at the end of the day, EUR 20.8 million received in the first three months is still a good number, and we are happy with that, and we are fully on track concerning our full-year target. Of course, there are always delays from one quarter to the other. We are absolutely confident that we make our numbers and there's no negative impact at all.
Okay, thank you. Maybe last one. Is the new share program for your employees linked to the development of the share price?
The new share program is not linked to the development of the share price. This is only for our management team, not for the employees. I want to make sure, I think we have a different situation, because let's be honest, the salaries are different, and we want to really encourage our employees and to make sure that each and every will take part at this. Of course, the risk structure of, let's say, a normal employee, a normal worker is different compared to the management team.
Okay, thank you.
There are no further questions from the audience. There are no more questions, so I would like to hand back over the closing remarks to the company.
Yes. Thank you very much for your time, for your questions, for taking part. A final statement. Yes. As mentioned, our growth strategy is working, ladies and gentlemen. We do have an attractive core business, and we are expanding in new markets. We are boosting the momentum with platform-based innovations, and we have the financial strength to support this development by targeted acquisitions. Yeah, thank you very much again. Stay healthy, and maybe we meet us on Wednesday on our AGM. Thank you very much and goodbye.