1 Q INTERIM REPORT 31 MARCH 2015
2 KEY FIGURES 2 Group key figures GROUP KEY FIGURES in million Jan Mar. 31, 2015 Jan Mar. 31, 2014 Changes Sales revenues % Gross profit % EBITDA % EBITDA margin in % 5.4% 5.3% 0.1% EBITA % EBIT % Earnings per share from continuing in (dilluted) % average number of shares (in 1.000) (basic) 14, % Employees as at March 31 2,902 2, % in million Mar. 01, 2015 Dec. 31, 2014 Changes Balance sheet % Equity % Equity ratio in % 50.2% 44.1% 6.1% Revenue CANCOM Group Mar. 31, 2014 and Mar. 31, 2015 (in million) Gross profit CANCOM Group Mar. 31, 2014 and Mar. 31, 2015 (in million) EBITDA CANCOM Group Mar. 31, 2014 and Mar. 31, 2015 (in million) Earnings per share CANCOM Group Mar. 31, 2014 and Mar. 31, 2015 (in Euro) COMMENT The earnings per stock disclosed in the consolidated statement of income includes effects from amortizations pursuant to IFRS for purchase price allocation (ppa). These effects amount to 0.10 Euro in the reporting period q1/2015 (q1/2014: 0.10 Euro). Amortizations effects of purchase price allocation (ppa) are one-time in case of acquistions and non-cash, that means they decline over time.
3 TABLE OF CONTENTS 3 Table of contents 2 Key figures 3 Table of contents 4-5 Preface 6-11 Consolidated Interim Management Report Q1 1) Fundamental information about the Group 06 2) Economic report 07 3) Earnings, financial and assets position of the CANCOM Group ) Stocks held by members of the Executive and Supervisory Boards as at March 31, ) Events of particular significance after the end of the reporting period 09 6) Risks of future development 10 7) Opportunities for future develpoment 10 8) Forecast Balance Sheet 14 Consolidated statement of income 15 Consolidated statement of comprehensive income 16 Statement of cash flows 17 Consolidated statement of changes in equity Segment information Notes to the consolidated accounts
4 PREFACE 4 Dear Stockholders: After a strong performance by the CANCOM group in the fiscal year 2014, we have started the current year with the same motivation and commitment as ever. The positive trend in sales revenues and profits in the first quarter give us reason to remain optimistic about our prospects in The group s consolidated sales revenues are up by 9.0 percent, and EBITDA is up by 11.5 percent. Market researchers and IT analysts continue to see great potential for growth in the cloud computing environment, and we are in a position to take advantage of this because of our market position and strategic portfolio focus. We are experiencing a demand for our cloud solutions from companies not only in Germany, our home market, but also in California, where our U.S. subsidiary CANCOM HPM Networks has acquired its first cloud customers. This will boost our marketing efforts and our sales, helping us to develop our business in the U.S.A. further. In their recently published spring reports, the leading economic institutes are forecasting continued growth in Germany, which they attribute mainly to the favorable oil price and the weak euro. The German economy, along with most of our clients, is benefiting from the increase in purchasing power and consumer spending, in addition to the export-stimulating low euro exchange rate. As a result corporate investments have stabilized or even increased, with a positive impact on IT budgets and consequently the volume of the IT market. This is benefiting the business of both our cloud solutions segment and our IT solutions segment - although the strong US dollar increase in q1 partly lead to postponements of investments. Aided by the positive market dynamics, we plan to further deepen the integration of the companies we have acquired, taking advantage of synergies. Our comfortable cash position also provides us with the option of making suitable acquisitions should opportunities arise. We are grateful to you, our stockholders, for your confidence in us, and we look forward to guiding CANCOM to continued success. Sincerely, Klaus Weinmann Chief Executive Officer
6 CONSOLIDATED INTERIM MANAGEMENT REPORT 6 Consolidated interim management report 1. Fundamental information about the group The CANCOM group is one of the leading providers of IT infrastructure and services in Germany and Austria. In addition to its locations in Germany and Austria, the group has an international network of partners, with locations in the U.S.A. and representative offices, among other places, in Brussels, Belgium and London, U.K. The group s integrated product and service offering covers the entire IT value chain, ranging from analysis and consulting to implementation and services. The structure of the CANCOM group CANCOM SE (also referred to as CANCOM), based in Munich, Germany, performs the central financial and management role for the equity investments held by the CANCOM group. Areas of business The cloud solutions operating segment comprises the CANCOM group s cloud and shared managed services business, including sales revenues from project-related cloud hardware, software and services. This ranges from analysis and advice to delivery, implementation and services. Clients are thus offered the necessary orientation and support for their conversion from traditional corporate IT systems to cloud computing. As part of its range of services, the CANCOM group can provide scalable cloud and managed services in particular shared managed services to run entire IT departments, or parts of them, for its clients. Distribution costs allocated to cloud distribution are included in the segment. The cloud business also benefits from synergies with CANCOM s central sales and marketing department, the costs of which are allocated to the IT solutions reportable segment. Focus of activities and sales markets The CANCOM group is one of the largest independent integrated IT systems providers in Germany. It offers IT architecture, systems integration and managed services. As a provider of integrated services, CANCOM mainly focuses on IT services, in addition to distributing hardware and software from well-known manufacturers. The IT services offered by the group include IT consulting, the design of IT architectures and landscapes, IT strategy advice and consulting, and the design, integration and operation of IT systems ranging from the performance of individual partial assignments (out-tasking) to taking over the complete operation of a company s IT systems. The CANCOM group s client base therefore mainly includes commercial end-users, from small and medium enterprises to large companies and groups, as well as public-sector clients. Geographically, the CANCOM group operates primarily in Germany, Austria and Switzerland as well as in the U.S.A. Explanation of the control system used within the group To control and monitor the performance of the individual subsidiaries and the operating segments, CANCOM analyzes their monthly figures for, among other things, sales revenues, gross profit, operating expenditure and operating profit, and compares these key figures with the original plan as well as the quarterly forecast. For the purpose of management control, the company also regularly uses external indicators such as inflation rates, interest rates, the general economic trend and the performance of the IT sector, including forecasts. It also takes into account any early warning data or indicators. Cash management procedures include daily status assessments. The IT solutions operating segment of the CANCOM group offers comprehensive support for IT infrastructure and applications. The range of services offered includes IT strategy consulting, project planning and implementation, system integration, IT procurement via e-procurement services or as part of a project, in addition to professional IT services and support.
7 CONSOLIDATED INTERIM MANAGEMENT REPORT 7 Research and development activities Significant events and investments during the first quarter Innovation is very important for economic momentum and growth. As it is purely a service and trading enterprise, CANCOM does not conduct any research. Its development work focuses mainly on software solutions and applications in IT growth segments such as cloud computing, virtualization, mobile solutions, IT security and shared managed services. Development work is limited in scope and is mainly used for the group s own purposes. During the first quarter of 2015, further development work was carried out on the group s own IT architecture platform, AHP Private Cloud, in addition to customization of in-house software used by the company. CANCOM SE has sold its 51 percent stake in consulting firm acentrix GmbH. The sale is documented in a notarized agreement dated March 25, At the time this management report was drawn up by the Executive Board, the sale had made no significant impact on the earnings, financial and assets position of the CAN- COM group. Employees As at March 31, 2015, the CANCOM group employed 2,902 people 2. Economic report The general economic situation and the performance of the IT sector Since the start of the year the German economy has been experiencing an upturn. In the final quarter of 2014 the gross domestic product (GDP) increased by a surprisingly strong 0.7 percent. On the whole, total economic output held its own over the year 2014, with an increase of 1.6 percent. The German economy is in good shape generally. Overall, companies are internationally competitive and have a solid financial base. The market sentiment indicators are therefore looking more positive again. The mood in the IT sector also remains good. According to the IT sector barometer from the German Association for Information Technology, Telecommunications and New Media (BITKOM), the majority of ICT enterprises surveyed at the start of the year are very confident, and expect a year-on-year increase in sales revenues in the first half of the year. The employees worked in the following areas (as at March 31): Professional services 2,039 Sales and distribution 481 Central services 382 The personnel expenses for the first three months were as follows (in 000): Jan Mar. 31, 2015 Jan Mar. 31, 2014 Wages and salaries 38,120 33,894 Social security contributions 6,222 5,569 Pension provisions Total 44,479 39,523 Impact on the CANCOM group s business performance The first three months of 2015 saw a continuation of CANCOM SE s consistent growth, along with an improvement in the profitability of the Group. The sales revenues and profits exceeded the values for the same period of The increase in the Group s sales revenues and profits is driven by the cloud and managed services business, as well as related solutions such as IT mobility and security, which contributed to the good performance of the integrated IT systems business.
8 CONSOLIDATED INTERIM MANAGEMENT REPORT 8 3. Earnings, financial and assets position of the CANCOM Group a) Earnings position The CANCOM Group recorded a growth in its sales revenues and profits in the first three months of 2015 in comparison with the same period of To comply with the provisions of International Financial Reporting Standard (IFRS) 5, some adjustments had to be made to the consolidated figures for the previous year regarding areas that were classified as discontinued operations in Consolidated sales revenues were up 9.0 percent, from million to million. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for the first three months of the fiscal year 2015 were up 11.5 percent year on year, from 9.6 million in 2014 to 10.7 million in As a result, the EBITDA margin stood at 5.4 percent, slightly higher than the previous year s level. CANCOM Group EBITDA: year-on-year comparison of figures for the first three months (in million) CANCOM Group sales revenues: year-on-year comparison of figures for the first three months (in million) Consolidated earnings before interest, tax and amortization (EBITA) amounted to 77 million, an increase of 10.0 percent on the figure of 7.0 million for the same period of In Germany, sales revenues were up 6.4 percent, from million to million. In international business, the CANCOM Group s sales revenues were up from 12.6 million to 18.3 million (+45.2 percent). The increase in sales revenues is mainly attributable to the U.S. subsidiary HPM Networks. In the IT solutions segment, sales revenues were up by 3.9 percent, from million in 2014 to million in In the cloud solutions segment, sales revenues were also up, by 50.0 percent, from 20.6 million to 30.9 million. The CANCOM Group s consolidated gross profit for the first three months of the year was up 11.2 percent year on year, from 58.0 million in 2014 to 64.5 million in This was as a result of the further expansion of the high-margin services business. The gross profit margin was 32.5 percent in comparison to 31.9 percent in CANCOM Group gross profit: year-on-year comparison of figures for the first three months (in million) CANCOM Group EBITA: year-on-year comparison of figures for the first three months (in million) Consolidated earnings before interest and tax (EBIT) amounted to 5.4 million, up 17.4 percent from 4.6 million in The net income for the period was slightly above the 2014 figure ( 3.0 million), at 3.2 million. Earnings per share from continuing operations for the first three months of 2015 were 0.22, compared to 0.21 in the previous year. The order position In the cloud solutions segment, and large parts of the IT solutions segment, orders are often placed over long periods. For this reason the reporting date figures do not give a good indication of the order situation, and they are therefore not published. At the time this management report was written, capacity utilization among our consultants was good in both segments.
9 CONSOLIDATED INTERIM MANAGEMENT REPORT 9 Explanations of individual items on the statement of income Notes to the statement of cash flows Further details on items in the statement of income are given in the notes to the consolidated statement of income. b) Financial and assets position Objectives of financial management The core objective of the financial management of the CANCOM group is to safeguard its liquidity at all times in such a way that day-to-day business activities can be continued. In addition, the group aims to achieve optimum profitability as well as a high credit status to ensure favorable refinancing rates. The cash flow from ordinary activities is typically negative during the year, and there was a negative cash flow of 36.4 million as at March 31, 2015 compared with 20.0 million in the same period of There was a negative cash flow from investing activities of 2.2 million, compared with a negative cash flow of 22.1 million in The cash flow from financing activities was minus 0.8 million, compared with 44.1 million in Overall, this resulted in cash and cash equivalents of 75.3 million, compared with 79.7 million in Notes on the capital structure On the assets side of the consolidated balance sheet, there was a decrease in current assets from million to million between December 31, 2014 and March 31, Cash and cash equivalents were also down from million to 75.3 million in the same period. Trade accounts receivable decreased to million as at March 31, 2015, compared with million as at the end of Inventories also experienced losses, dropping from 22.7 million to 21.1 million. Non-current assets slightly rose from million as at December 31, 2014 to million as at March 31, On the liabilities side of the balance sheet, there was a substantial reduction in current liabilities from million to million in the first three months of the year. This was essentially the result of a decrease in trade accounts payable from million to 69.0 million. Non-current liabilities, consisting of debt with a residual term of at least one year, were up slightly from 76.0 million as at December 31, 2014 to 77.8 million as at March 31, Stocks held by members of the Executive and Supervisory Boards as at March 31, 2015 Total number of stocks 14,879, % Executive Board Klaus Weinmann 100,000 0,7 % Supervisory Board Dominik Eberle 10, % 5. Events of particular significance after the end of the reporting period Up until the time of preparation of this management report by the Executive Board, there were no significant events with any impact on the assets, financial and earnings position of the CANCOM group. There was an increase in nominal equity from million as at December 31, 2014 to million as at March 31, Overall, this resulted in an improved equity ratio of 50.2 percent at the end of the first quarter, up from 44.1 percent as at December 31, 2014, with total assets down to million, compared with million as at December 31, Further details of the individual balance sheet items can be found in the notes to the consolidated balance sheet.
10 CONSOLIDATED INTERIM MANAGEMENT REPORT Risks of future development There have been no major changes in the risks of future development at CANCOM since the start of the current fiscal year. Details of the risks can be found in the annual report for 2014, starting on page 30. The annual report can be downloaded from www. cancom.com/corporate/company/investor-relations or obtained in printed form, free of charge, from the company. Trading in software is likely to grow by 5.7 percent to 20.2 billion. Turnover in IT services is expected to rise by 3.0 percent to 37.3 billion. Experts expect a weaker performance from the IT hardware market, which they expect to grow by 1.3 percent to 22.8 billion this year. 7. Opportunities for future development There have been no major changes in the opportunities for future development at CANCOM since the start of the current fiscal year. Details of the opportunities can be found in the annual report for 2014, starting on page 40. The annual report can be downloaded from or obtained free of charge from the company. Performance of the German IT sector in 2015 (real change in comparison with 2014, as a percentage) IT market as a whole IT-Hardware Software IT-Services Forecast: BITKOM, March Forecast Further growth is expected for the German economy in Forecasts for GDP growth range from 1.1 percent to 2.0 percent. Gross domestic product 2015 (real change compared with 2014, as a percentage) Germany Euro area U. K U.S.A World Forecast: Deutsche Bank Economic Research, May 12, 2015 According to the latest market figures from the German Association for Information Technology, Telecommunications and New Media (BITKOM), the turnover in IT products and services should grow by 3.2 percent to 80.3 billion in 2015 considerably more strongly than the rest of the economy. Anticipated performance of the CANCOM group Thanks to its proven expertise and outstanding market position in the IT growth areas of cloud computing, mobility, IT security and managed services, CANCOM aims to continue growing both of its business segments organically and through acquisitions at a faster rate than the IT market, thus steadily expanding its market share. For this purpose, CANCOM geared its business policy to the IT growth areas at an early stage, and its sales and services structure have been designed around them. With its integrated portfolio of services across all areas of IT, and its flexibility in providing individually tailored packages for its clients, CANCOM has major client advantages to enable it to penetrate the market even further. In addition, the increasing complexity of IT is stretching smaller integrated systems providers to the limits of their capabilities. This, combined with the withdrawal of larger providers from individual business segments, could result in the CANCOM group gaining new clients and orders with positive impacts on the IT solutions and cloud solutions business. In the past year, the Executive Board set the course for further growth and good performance in the future. CANCOM focuses on profitable business in the traditional IT environment and withdraws without hesitation from low-growth or declining areas. It is planned to pursue further the integration of the acquired companies and the exploitation of synergies.
11 CONSOLIDATED INTERIM MANAGEMENT REPORT 11 CANCOM has expanded its market presence and improved its client proximity in the German-speaking area (i.e. Germany, Austria and Switzerland). The group is represented all over Germany and Austria by its many service and consulting locations. Through its subsidiaries in the U.S.A., the U.K. and Belgium, as well as its global partner networks, the CANCOM group has an international presence in selected markets. CANCOM plans to continue strengthening its market position, primarily in the IT environment in the German-speaking area. It intends to achieve this partly by selective acquisitions, thus taking advantage of economies of scale and synergies in the market. The market continues to offer favorable conditions for this policy. Against the background of the group s successful performance in 2014 and in view of its favorable positioning in the emerging market of cloud computing and in the IT market as a whole, the Executive Board expects further growth and an improvement in the profits of the group if the demand for IT products and services remains steady. The group will increasingly focus on profitable turnover rather than simply higher sales volumes. The Executive Board currently expects a further increase in the sales revenues and gross profit of the group as a whole in the fiscal year The growth of the CANCOM group should continue to exceed the growth of the German IT market, the market of relevance to the group. In the fiscal year 2015, the Executive Board expects acquisition-based growth in both operating segments to ease off in comparison with There are takeover targets, but many of them are not sufficiently interesting in terms of their price. Although it is difficult to forecast, it is assumed that the organic growth of the group will continue at a rate comparable to that in 2014, with acquisition-based growth at a similar rate. The Executive Board anticipates a further increase in the CANCOM group s EBITDA, which should grow faster than the organic growth in sales revenues, owing to an improved product mix. Disclaimer regarding forward-looking statements This document has not been audited. It contains forward-looking statements and information based on the current expectations, assumptions and estimates of the Executive Board of CANCOM SE, and other information currently available to the management. The words expect, assume, believe, estimate, presume, calculate, intend, could, plan, should, or similar, are used to indicate forward-looking statements. All statements with the exception of facts regarding the past are forwardlooking statements. These statements include expectations regarding the availability of products and services, the financial and earnings position, the business strategy and the Executive Board s plans for future operating activities, economic performance and all statements regarding assumptions. Although we take the greatest of care when making these statements, we cannot guarantee their correctness, especially in our forecast. Various known and unknown risks, uncertainties and other factors may lead to the actual events deviating significantly from those contained in the forward-looking statements. The following influencing factors are, among others, relevant in this respect: external political influences, changes in the general economic and business situation; changes in the competitive position and situation, for instance by the emergence of new competitors, new products and services or new technologies; changes in the investment behavior of target client groups etc. and changes to the business strategy. CANCOM cannot guarantee the pertinence, accuracy, completeness or correctness of the information or opinions in this document. CANCOM does not plan to update its forecasts beyond the legal requirements, nor does it make any commitment to do so. The Executive Board anticipates for the full year that growth in the sales revenues, gross profit and EBITDA generated by the IT solutions operating segment will outstrip market growth in For the cloud solutions segment, it expects significant increases in all three figures. Munich, Germany, May 2015 CANCOM SE The Executive Board
12 BALANCE SHEET 12 Consolidated balance sheet (IFRS) ASSETS (in 000) Notes Mar. 31, 2015 Dec. 31, 2014 Mar. 31, 2014 Current assets Cash and cash equivalents 75, ,295 79,727 Assets held for sale 3,731 2,291 0 Trade accounts receivable 125, , ,586 Other current financial assets B.1. 7,658 7,522 4,969 Inventories 21,113 22,658 14,098 Orders in process ,148 Prepaid expenses and other current assets B.2. 4,468 3,535 4,683 TOTAL current assets 238, , ,211 Non-current assets Property, plant and equipment 37,662 37,654 33,983 Intangible assets 33,187 34,295 44,661 Goodwill 68,476 66,923 63,254 Long-term financial assets Long-term equity investments Loans 1,502 1, Other financial assets 6,092 4,662 3,074 Deferred tax resulting from temporary differences B.3. 2,989 3,071 2,172 Deferred tax resulting from tax loss carryforwards B.3. 4,019 4,238 4,940 Other assets 1, TOTAL non-current assets 155, , ,827 Total assets 393, , ,038
13 BALANCE SHEET 13 EQUITY AND LIABILITIES (in 000) Notes Mar. 31, 2015 Dec. 31, 2014 Mar. 31, 2014 Current liabilities Short-term loans and current portion of long-term loans 1,776 1,711 1,662 Participation rights and subordinated loans, current portion 1,988 1,985 0 Trade accounts payable 68, ,440 79,857 Prepayments received 7,228 9,040 3,735 Other current financial liabilities B.4. 3,573 3,629 2,734 Provisions B.5. 4,667 4,753 4,173 Deferred income 2,717 2,413 3,123 Income tax liabilities B.6. 3,790 7,186 2,907 Other current liabilities 21,548 28,295 19,511 Liabilities in connection with assets held for sale 2,045 2,022 0 Total current liabilities 118, , ,702 Non-current liabilities Long-term loans 3,442 3,632 4,197 Convertible bond B.7. 39,456 39,144 38,218 Profit participation capital and subordinated loans 4,436 4,332 6,018 Deferred income 3,677 3,130 3,067 Deferred taxes from temporary differences B.8. 10,474 10,552 13,705 Pension provisions 1,801 1, Other non-current financial liabilities B.9. 2,802 2,843 3,486 Other non-current liabilities 11,789 10,588 9,508 TOTAL non-current liabilities 77,877 76,017 78,368 Equity capital Capital stock 14,880 14,880 14,616 Capital reserves 110, , ,530 Net retained profits (including revenue reserves) 63,052 59,967 56,433 Equity difference resulting from currency translation and price changes 1, Minority interests 8,266 8,228 10,417 Total equity capital 197, , ,968 Total liabilities 393, , ,038
14 CONSOLIDATED STATEMENT OF INCOME 14 CONSOLIDATED STATEMENT OF INCOME (in 000) Notes Mar. 31, 2015 Mar. 31, 2014 Sales revenues 198, ,689 Other operating income D Other own work capitalized Gross revenue for the period 198, ,166 Cost of materials and purchased services -134, ,158 Gross profit 64,543 58,008 Personnel expenses D ,479-39,523 Depreciation on property, plant and equipment and amortization of intangible assets -5,322-4,936 Other operating expenses D.3. -9,373-8,908 Operating result 5,369 4,641 Interest and similar income Interest and similar expenses Share in profit or loss of joint ventures accounted for by the equity method Currency translation gains/ losses Earnings before taxes 4,975 4,408 Income tax D.4. -1,624-1,422 Earnings after taxes from continuing operations 3,351 2,986 Earnings from discontinued operations D Net income/ loss for the period 3,228 2,976 thereof attributable to the stockholders of the parent company 3,085 3,011 thereof attributable to minority interests Average number of stocks outstanding (basic) 14,879,574 14,615,791 Average number of stocks outstanding (diluted) 15,935,094 14,615,791 Earnings per stock from continuing operations (basic) in EUR Earnings per stock from continuing operations (diluted) in EUR Earnings per stock from discontinued operations (basic) in EUR Earnings per stock from discontinued operations (diluted) in EUR
15 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 15 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in 000) Jan. 1, - Mar. 31, 2015 Jan. 1, - Mar. 31, 2014 Net income/ loss for the period 3,228 2,976 Other comprehensive income Items possibly reclassified in profit or loss Currency translation differences Income tax Other comprehensive income for the period (after taxes) Comprehensive income for the period 3,805 2,980 thereof attributable to the stockholders of the parent company 3,662 3,015 thereof attributable to minority interests
16 STATEMENT OF CASH FLOWS 16 STATEMENT OF CASH FLOWS (in 000) Mar. 31, 2015 Mar. 31, 2014 Cash flow from ordinary activities Profit for the period before taxes and minority interests 4,975 4,408 Adjustments +/- Depreciation on property, plant and equipment and amortization of intangible assets 5,322 4,936 +/- Changes in non-current provisions /- Changes in current provisions /- Income/ loss on the sale of intangible assets, property, plant and equipment and long-term financial assets Interest expenses /- Changes in inventories 1,545 2,319 +/- Changes in trade accounts receivable and other accounts receivable 5, /- Changes in trade accounts payable and other accounts payable -47,129-31,130 + Interest paid /- Income taxes paid and refunded -5, /- Non-cash expenses/ income /- Cash inflow/outflow from discontinued operations Net cash from operating activities -36,422-20,030 Cash flow from investing activities +/- Acquisition of subsidiaries and equity instruments of other companies 0-30,506 +/- Cash acquired on the purchase of stocks 0 18,884 + Income from sale of former consolidated subsidiaries 1, Payments for additions to intangible assets and property, plant and equipment -3,530-10,671 + Income from disposal of intangible assets, property, plant and equipment, and long-term financial assets Cash transferred on the sale of shares Interest received Net cash used in investing activities -2,215-22,054 Cash flow from financing activities +/- Capital stock increase expenses Cash inflow from convertible bond 0 45,000 - Repayment of long-term borrowings (including current portion) /- Changes in short-term borrowings Interest paid ,023 +/- Cash inflow/ outflow from finance lease Net cash used in financing activities ,074 Net increase/ decrease in cash and cash equivalents -39,438 1,990 +/- Exchange rate-related changes in cash /- Cash and cash equivalents at beginning of period 114,295 77,733 Cash and cash equivalents at end of period 75,312 79,727 Breakdown: Cash and cash equivalents 75,312 79,727 75,312 79,727
17 CONSOLIDATED FINANCIAL STATEMENTS 17 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Shares Share capital Additional paid-in capital Additional paid-in capital Foreign currency translation reserve Exchange rate difference reserve Reserve change of actuarial gains/ losses from pensions Revaluation reserve Net profit / loss Total investors parent company Minority interest Total equity cash units 000 in in in in in in in in in in in Dezember 31, ,616 14,616 94,578 28, , , ,679 Capital increase ,681 9,945 9,945 Changes in reserves: Costs of capital increase Convertible bonds 5,942 5,942 5,942 Transfer net profit / retained earnings 6,023-6, Payout in financial year -5,847-5, ,847 Comprehensive income for the period ,660 12,943-1,363 11,580 Acquisition of minority interests 0 10,586 10,586 Effect from disposal of minority interests 0-1,090-1,090 Dezember 31, ,880 14, ,197 34, , ,563 8, ,791 Comprehensive income for the period ,085 3, ,805 Effect from disposal of minority interests March 31, ,880 14, ,197 34,620 1, , ,225 8, ,491
18 SEGMENT INFORMATION 18 Segment information IFRS Segment information Cloud solutions IT solutions Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2014 Sales revenues - External sales 30,906 20, , ,048 - Intersegment sales , Total sales revenues 31,186 20, , ,132 - Cost of materials and purchased services -15,409-10, , ,114 - Personnel expenses -8,082-5,141-34,415-32,395 - Other income and expenses -1,457-1,134-6,701-6,337 EBITDA 6,238 4,220 7,137 8,286 - Depreciation and amortization -1,585-1,365-3,651-3,519 Operating income (EBIT) 4,653 2,855 3,486 4,767 - Interest income Interest expenses Share in profit or loss of joint ventures accounted for by the equity method Result from ordinary activities 4,787 2,951 3,171 4,462 - Currency translation gains/ losses Earnings before taxes 4,787 2,951 3,171 4,462 - Income tax - Discontinued operations Consolidated net income thereof attributable to the stockholders of the parent company thereof attributable to minority interests Other information - Anteile an assoziierten Unternehmen Assets 1 82,557 63, , ,802 - investments ,691 4,390 70,840 1) Assets and investments including goodwill from capital consolidation 2) Tax assets
19 SEGMENT INFORMATION 19 Totals Other companies Reconciliation Consolidated Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, , , , , , , , , , , , , , ,146-42,497-37,536-1,982-1, ,479-39,523-8,158-7, , ,697-8,431 13,375 12,506-2,684-2, ,691 9,577-5,236-4, ,322-4,936 8,139 7,622-2,770-2, ,369 4, ,958 7, , ,781 4, ,958 7,413-3,177-2, ,975 4,408-1,624-1,422-1,624-1, ,228 2,976 3,085 3, Reconciliation , ,007 43,309 66,491 8,184 9, , ,675 5, , ,100 5, ,631
20 NOTES TO THE CONSOLIDATED ACCOUNTS 20 A. The principles adopted for the consolidated financial statements 1. General information The consolidated financial statements of CANCOM SE and its subsidiaries ( the CANCOM group or the group ) for the fiscal year 2015 were drawn up according to the International Financial Reporting Standards (IFRS) or the International Accounting Standards (IAS). The consolidated interim financial statements were drawn up in euro. All amounts are shown in thousand euro ( thousand) unless otherwise stated. In individual cases rounding of figures may result in inconsistencies between totals and sums of constituent parts. For the same reason, percentage may not exactly match the aggregate values shown. This consolidated interim financial report is condensed and was drawn up in compliance with IAS 34 Interim Financial Reporting. It should be read in conjunction with the IFRS-compliant consolidated financial statements for the fiscal year 2014, which can be downloaded from The table below shows the impact on the reporting entity of the sale of acentrix GmbH: March 31, 2015 Cash and cash equivalents -43 Trade accounts receivable -578 Other current financial assets 0 Intragroup accounts receivable -223 Orders in process -159 Prepaid expenses and other current assets -131 Total current assets -1,134 Property, plant and equipment (tangible assets) -115 Intangible assets -15 Goodwill -59 Other financial assets -35 Total non-current assets -224 Total assets -1, Reporting entity The consolidated financial statements include CANCOM SE and all subsidiaries in which CANCOM SE has either a direct or an indirect majority stockholding, or in which it holds the majority of the voting rights. These subsidiaries are fully consolidated. CANCOM SE has sold its stocks in acentrix GmbH. The transaction is documented in a stock purchase and assignment agreement dated March 25, The stocks were transferred on March 31, Trade accounts payable -66 Intragroup accounts payable -667 Provisions -5 Other current liabilities -329 Total current liabilities -1,067 Deferred taxes from temporary differences -30 Total non-current liabilities -30 Total liabilities -1,097 Net assets sold (excess of liabilities) Accounting and valuation policies The consolidated interim financial report is compiled using basically the same accounting and valuation methods as those used for the consolidated financial statements for the fiscal year 2014.