1 Q2 INTERIM REPORT 30 JUNE
2 KEY FIGURES 2 Group key figures Q2 AT A GLANCE in million Apr. 1 - Jun. 30, Apr. 1 - Jun. 30, Changes Sales revenues % Gross profit % EBITDA adjusted 11.4* % EBITDA margin adjusted 6.0%* 5.6% 0.4% EBITA adjusted 8.2* % Earnings per share adjusted (basic) 0.36 ** 0.34 ** 5.9% FIRST HALF in million Jan. 1 - Jun. 30, Jan. 1 - Jun. 30, Changes Sales revenues % Gross profit % EBITDA adjusted 22.0* % EBITDA margin adjusted 5.9%* 5.4% 0.5% EBITA adjusted 15.9* % Earnings per share adjusted (basic) 0.71 ** 0.63 ** 12.7% average number of shares (in 1.000) (basic) 14,616 11, % Employees as at June 30 2,715 2, % in million Jun. 30, Dec. 31, Changes Balance sheet % Equity % Equity ratio 49.8% 50.7% -0.9% * Adjusted for one-off effects of 100k in Q2/ of 600k in H1/, which were external costs related to acquisitions, not to be capitalized pursuant to IFRS. ** Adjusted for one-off effects mentioned above and amortization on intangible assets for purchase price allocation (PPA). Revenue CANCOM Group Jan. 1 - Jun. 30, and Jan. 1 - Jun. 30, (in million) EBITDA adjusted CANCOM Group Jan. 1 - Jun. 30, and Jan. 1 - Jun. 30, (in million) EBITA adjusted CANCOM Group Jan. 1 - Jun. 30, and Jan. 1 - Jun. 30, (in million) Earnings per share adjusted CANCOM Group Jan. 1 - Jun. 30, and Jan. 1 - Jun. 30, (in ) Note: This overview of key figures is not part of the interim report. Adjusted EBITDA, adjusted EBITA and adjusted earnings per share are not defined in IFRS. CANCOM considers adjusted key figures to be more suitable indicators of operating performance. It is intended to give readers a clearer picture of the results of operations and ensures greater comparability of data 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 Q2 1) Fundamental information about the Group 06 2) Economic report ) Earnings, financial and assets position of the CANCOM Group ) Stocks held by members of the Executive and Supervisory Boards as at June 30, 09 5) Events of particular significance after the end of the reporting period 09 6) Risks of future development 09 7) Opportunities for future develpoment 09 8) Forecast ) Management responsibility statement Balance Sheet Consolidated statement of income 16 Consolidated statement of comprehensive income 17 Statement of cash flows 18 Consolidated statement of changes in equity Segment information Notes to the consolidated accounts
4 PREFACE 4 Dear Stockholders, CANCOM has had an eventful half-year, during which we took the momentum generated in and the first quarter to increase our consolidated sales revenues by 36.2 percent during the second quarter, and to improve the long-term profitability of the group by increasing our adjusted EBITDA by 48.6 percent. Our strong position in the growth field of cloud computing has been recognized by Experton Group, which awarded CANCOM the title of Cloud Leader on the basis of its annual Cloud Vendor Benchmark study. We also received this major award in for our strong competitiveness and our attractive portfolio. The analysts also rated us as leading experts for our cloud transformation know-how. In other words, we are the only German provider with an integrated portfolio that enables us to offer clients freedom in choosing their individual path to cloud computing. The award has given a major boost to our operating business. In April CANCOM made a move of great importance for our cloud and shared managed services business by signing a general agreement with HP Enterprise Services for the use of the CANCOM AHP Private Cloud in HP s cloud services portfolio for medium-sized clients. The agreement makes HP rated by market research company Forrester as a global market leader in hosting and cloud services our hosting and distribution partner for the CANCOM AHP Private Cloud platform. The aim is to deliver a turnkey private cloud platform as a cloud service from HP s data centers all around the world. This partnership increases our capacity to bring our own private cloud solution onto the market faster both in Germany and internationally through HP s global supply chain. We also view the fact that HP is using our solution for medium-sized comp We are also making progress with the integration of the companies we have acquired. The recent acquisition of DIDAS Business Services GmbH, based in Langenfeld in the German federal state of North-Rhine-Westphalia, has been formally completed with the signing of the contract of sale in April and payment of the purchase price at the start of July. The company, which has now been renamed CANCOM DIDAS GmbH, will be included in the consolidated financial statements with effect from July 1,. We are optimistic about the second half of the year and the year as a whole, in line with most other IT companies. According to the latest IT sector barometer from BITKOM (the German Association for Information Technology, Telecommunications and New Media), the vast majority of IT companies expect sales revenues for the year as a whole to be higher than in. We would like to express our sincere gratitude to you, our stockholders, for your confidence in us. We at CANCOM are all working hard to ensure the group s continued success. Sincerely yours, Klaus Weinmann CEO
5 We are continuing to grow, and we are therefore optimistic about the year as a whole.
6 CONSOLIDATED INTERIM MANAGEMENT REPORT 6 Consolidated interim management report relating to the consolidated financial statements page 12 et seq. 1. Fundamental information about the Group The CANCOM Group is one of the leading providers of IT infrastructure and IT services in Germany and in Austria. Its integrated range of products and services covers the entire IT added value chain, from analysis and consulting to implementation and services. Legal structure of the CANCOM Group CANCOM SE, based in Munich, Germany, performs the central financial and management role for the equity investments held by the CANCOM Group. Areas of business The IT solutions business segment of the CANCOM Group offers a comprehensive portfolio of products and services relating to IT infrastructure and applications. The range of services offered includes IT strategy consulting, project planning and implementation, systems integration, IT procurement via e-procurement services or as part of a project, as well as professional IT services and support. The cloud solutions business segment comprises the CANCOM Group s cloud and shared managed services business, including sales revenues from cloud hardware allocated to the projects. The segment s activities range from analysis and consulting to delivery, implementation and services. This means it offers clients the necessary orientation and support for their changeover from traditional corporate IT systems to cloud computing. As part of its range of services, the CANCOM Group is able to run parts of, or entire, IT departments for its clients, using scalable cloud and managed services especially shared managed services. Distribution costs allocated to cloud distribution are included in the segment. In addition, the cloud business benefits from synergies with the normal CANCOM distribution system. Focus of activities and sales markets The CANCOM Group is one of the three largest independent integrated IT systems providers in Germany. It offers IT architecture, systems integration and managed services. As a provider of integrated solutions, CANCOM mainly focuses on IT services, in addition to distributing hardware and software in its transaction-based and product-related business. Its comprehensive range of IT services includes design of IT architectures and IT landscapes, IT strategy advice and consulting, design and integration of IT systems, and system operation. The CANCOM Group s client base therefore primarily includes commercial end-users. These range from small and medium-sized companies to large companies, corporate groups and public-sector clients. Explanation of the control system used within the Group To control and monitor the performance of the individual subsidiaries, CANCOM analyses 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. Cash management procedures include daily status assessments. Research and development activities Innovation is very important for economic momentum and growth. However, as it is purely a service and trading enterprise, CANCOM does not conduct research on a regular basis. Its development work focuses, for example, on software solutions and applications in IT growth segments such as cloud computing, virtualization, mobile solutions, IT security and managed services. Development activities are very limited in scope and are mainly used for the Group s own purposes. 2. Economic report The performance of the IT market and the economy as a whole The German economy appears to have slowed down in the second quarter of the year compared to the first quarter, but moderate growth in gross domestic product (GDP) is nevertheless expected. The mood in the IT sector also continues to be good. According to the latest IT sector barometer from BITKOM (the German Association for Information Technology, Telecommunications and New Media), the majority of IT companies expect sales revenues to rise in the second half of the year.
7 CONSOLIDATED INTERIM MANAGEMENT REPORT 7 Impact on the CANCOM Group s business performance Employees The second quarter saw a continuation of CANCOM SE s consistent growth, along with an improvement in the profitability of the Group. The sales revenues and profits for the quarter, and for the first half of the year, both exceeded the relevant values for the same periods of. The increase in the Group s sales revenues and profits is driven by the cloud and shared managed services business as well as the good performance of the integrated systems business across the Group. As at June 30,, the CANCOM Group employed 2,715 people. The employees worked in the following areas (as at June 30): Professional services: Sales and distribution 451 Central services 372 Significant events and investments during the second quarter CANCOM SE has issued a sponsored Level 1 American depositary receipts (ADR) program in the United States. ADRs are securities denominated in U.S. dollars representing stocks in a non-u.s. company traded in the U.S.A. They enable U.S. investors to buy CANCOM SE common bearer stocks listed on the FWB Frankfurt Stock Exchange indirectly on the U.S. market. The custodian for CANCOM SE s ADR program is Deutsche Bank Trust Company Americas ( Deutsche Bank ). CANCOM SE s Level 1 ADRs are traded over the counter in the United States. Four ADRs represent one CANCOM stock (ratio: 4 ADRs for 1 stock). On April 10, CANCOM SE signed a notarized contract of sale for the acquisition of all the stocks of DIDAS Business Services GmbH now CANCOM DIDAS GmbH from Allgeier IT Solutions AG. To pay the purchase price, CANCOM issued 263,783 new stocks by means of a capital increase against non-cash contributions. On June 25, the Supervisory Board approved a proposal by the Executive Board to use part of the Authorized Capital 2010-I to increase the company s capital stock by 263,783, from 14,615,791 to 14,879,574, against non-cash contributions. There was no subscription right for existing shareholders. The capital stock was increased by the full 263,783 (equivalent to 263,783 new stocks) and the increase was recorded in the commercial register at Munich Local Court (Amtsgericht) on July 3,. On April 29,, CANCOM and HP Enterprise Services signed a general agreement on the use of CANCOM AHP Private Cloud in HP s cloud services portfolio. HP Enterprise Services will offer its virtual client service to medium-sized clients (approximately 500 to 7,000 users) on the basis of the CANCOM AHP Private Cloud architecture. HP will operate the solution in its data centers, adding further services if required, and market it jointly with CANCOM. The aim is to provide medium-sized clients with a turnkey solution as a service for virtual clients in line with HP s new style of IT. The personnel expenses for the first six months were as follows (in 000): Jan. 1 - jun. 30, Jan. 1 - jun. 30, Wages and salaries 71,130 52,265 Social security contributions 11,733 9,054 Pension provisions Total 82,980 61, Earnings, financial and assets position of the CANCOM Group a) Earnings position The CANCOM Group recorded an increase in its sales revenues and profits in the first six months of in comparison with the same period of. Consolidated sales revenues were up 36.2 percent, from million to million. CANCOM Group sales revenues Year on year comparison of figures for the first six months (in million) In Germany, sales revenues were up 30.2 percent, from million to million. In international business, the CANCOM Group s sales revenues were up from 12.1 million to 32.2 million. In the IT solutions segment, sales revenues were up by 29.2 percent, from million in to million in. In the cloud solutions segment, sales revenues were also up, by percent, from 21.1 million to 46.5 million.
8 CONSOLIDATED INTERIM MANAGEMENT REPORT 8 The order position The CANCOM Group s consolidated gross profit for the first six months of the year was up 38.3 percent year on year, from 89.6 million in to million in. This was as a result of the successful expansion of the high-margin services business. The gross profit margin was up from 33.1 percent to 32.6 percent. In the IT solutions business segment, the majority of incoming orders are converted to sales within two weeks because of our large delivery capacity. Consequently, the reporting date figures on their own do not give a true picture of our order situation in this area of business, and for this reason they are not published. CANCOM Group gross profit Year-on-year comparison of figures for the first six months (in million) Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for the first six months of the fiscal year were up 44.6 percent year on year, from 14.8 million in to 21.4 million in. As a result, the EBITDA margin rose to 5.7 percent, compared with 5.4 percent in. CANCOM Group EBITDA Year-on-year comparison of figures for the first six months (in million) Consolidated earnings before interest, tax and amortization (EBITA) amounted to 15.3 million, an increase of 40.4 percent on the figure of 10.9 million for the same period of. CANCOM Group EBITA Year-on-year comparison of figures for the first six months (in million) Consolidated earnings before interest and tax (EBIT) amounted to 10.1 million. The figure is lower than in the previous year, owing to an increase in amortization of intangible assets as a result of acquisitions. In the cloud solutions business segment, orders are often placed over long periods. For this reason, the reporting figures do not give a good indication of the order situation of this segment either. Explanations of individual items on the statement of income 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. Notes on the capital structure On the assets side of the consolidated balance sheet, there was a reduction in current assets from million to million between December 31, and June 30,. Cash and cash equivalents were down from 77.7 million to 65.0 million. Trade accounts receivable were roughly the same as at December, 31 at million. Inventories were up from 15.5 million to 17.9 million. Non-current assets rose from million as at December 31, to million as at June 30,. This was mainly owing to acquisitions. On the liabilities side of the balance sheet, there was a significant reduction in current liabilities from million to million. This was mainly the result of a reduction in trade accounts payable from 99.0 million to 69.9 million. The net income for the period after minority interests was down from 6.8 million in to 6.4 million in. Earnings per share for the first six months of were 0.45, compared with 0.59 in.
9 CONSOLIDATED INTERIM MANAGEMENT REPORT 9 5. Events of particular significance after the end of the reporting period Non-current liabilities, consisting of liabilities with a residual term of at least one year, were up from 23.9 million as at December 31, to 76.5 million as at June 30,. The increase was primarily due to the issue of a convertible bond. There were no events of particular significance after the reporting date of June 30, up to the time of preparation of this management report. The total assets grew from million as at December 31, to million as at June 30,. Primarily owing to the retention of profits as well as the inclusion of new subsidiaries in the consolidated financial statements, there was an increase in nominal equity capital from million to million. Overall, this resulted in an equity ratio of 49.8 percent as at June 30, compared with 50.7 percent as at December 31,. Further details of the individual balance sheet items can be found in the notes to the consolidated balance sheet. Notes to the statement of cash flows The cash flow from ordinary activities is typically negative during the year, and there was a negative cash flow of 21.6 million as at June 30, compared with 27.8 million in the same period of. There was a negative cash flow from investing activities of 28.9 million, compared with 5.6 million in. This was owing to the company acquisitions and the purchase of the business premises in Jettingen-Scheppach, Germany. The cash flow from financing activities was 37.9 million primarily affected by the issuance of a convertible bond this compared with a negative cash flow of 5.1 million in. Overall, this resulted in cash and cash equivalents of 65.0 million, compared with 6.1 million in. 4. Stocks held by members of the Executive and Supervisory Boards as at June 30, 6. 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, starting on page 31. The annual report can be downloaded from or obtained free of charge from the company. 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, starting on page 31. The annual report can be downloaded from or obtained free of charge from the company. 8. Forecast According to the leading research institutes, the German economy should grow in ; forecasts for GDP growth for range from 1.6 to 2.2 percent. Eurozone + 1,1 Gross domestic product (real change compared with, as a percentage) Germany + 1,8 USA + 1,9 World + 3,2 Forecast: Deutsche Bank Economic Research, July 16, Total number of stocks % Executive Board Klaus Weinmann 185, % 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 2.9 percent to 76.3 billion in considerably more strongly than the rest of the economy. Supervisory Board Dominik Eberle 10, %
10 CONSOLIDATED INTERIM MANAGEMENT REPORT 10 Trading in software is likely to grow by 5.3 percent to 19.1 billion in the current fiscal year. Sales in IT services are expected to rise by 3.2 percent to 36.5 billion. Experts anticipate a weaker performance from the IT hardware market, which they expect to grow by only 0.2 percent to 20.8 billion this year. Performance of the German IT sector in real change in comparison with, as a percentage) IT-Markt gesamt + 2,9 IT-Hardware + 0,2 Software + 5,3 Services + 3,2 Forecast: BITKOM, March CANCOM plans to continue consolidating its market position in the IT environment, in the German-speaking countries as well as in other countries, through selective acquisitions. The market continues to offer favorable conditions for this policy. Owing to the Group s good positioning in the IT market - and in particular in the growth market of cloud computing - the Executive Board expects further growth in the company and an improvement in profits in the medium term if the demand for IT products and services remains steady or even rises. For the Group as a whole, the Executive Board currently expects a significant increase in the gross profit and EBITDA in the fiscal year. Anticipated performance of the CANCOM Group CANCOM aims to continue growing at a faster rate than the IT market and to expand its market share steadily, both through acquisitions and organically, on the basis of its proven expertise and outstanding market position in the IT growth areas of cloud computing, mobility, IT security and managed services. To achieve this aim, CANCOM geared its business policy to the IT growth areas from an early stage, and designed its sales and services structure around them. The expansion of the e-commerce business and the optimized e-supply chain, which enables process and transaction costs to be reduced both for clients and for the CANCOM Group, is intended to make the Group s trading business more profitable. CANCOM has a market presence and is close to its clients in the German-speaking countries. The Group is represented all over Germany and Austria by its many service and consulting locations. As a group, for instance through its U.S. subsidiary HPM Networks, CANCOM is able to design, configure and roll out IT infrastructure for international companies. CANCOM s collaboration with HP Enterprise Services enables it to offer clients remote managed services, in which it manages clients ongoing IT operation in the private cloud from HP s worldwide hosting data centers, using the CANCOM AHP Private Cloud platform. The distribution partnership could accelerate the growth of the Group s business in the cloud environment. 9. Management responsibility statement We confirm that, to the best of our knowledge, the consolidated interim financial statements, prepared in accordance with the applicable principles of financial reporting for interim statements, give a true and fair view of the assets, liabilities, financial position and income of the group, and that the interim management report gives a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks of the anticipated development of the group for the remaining six months of the financial year. Munich, Germany, August CANCOM SE The Executive Board
11 CONSOLIDATED INTERIM MANAGEMENT REPORT 11 This document 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, intend, could, plan, project, should, or similar, are used to indicate forward-looking statements. All statements with the exception of facts regarding the past are expectations. These forward-looking statements include inter alia: expectations on the availability of products and services, the financial and earnings position, the business strategy and the Executive Board s plans for future operating activities, current and future economic performance and all statements regarding expectations and assumptions. Although we feel that these statements and comments are based on expectations, 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.
12 BALANCE SHEET 12 Consolidated balance sheet (IFRS) ASSETS (in 000) Notes Jun. 30, Dec. 31, Jun. 30, Current assets Cash and cash equivalents 65,047 77,733 6,121 Trade accounts receivable 112, ,949 91,547 Other current financial assets B.1. 4,927 3,508 3,732 Inventories 17,858 15,481 9,663 Orders in process 1, ,448 Prepaid expenses and other current assets B.2. 5,084 1,687 2,476 Total current assets 206, , ,987 Non-current assets Property, plant and equipment 36,386 20,493 19,603 Intangible assets 41,739 22,611 15,806 Goodwill 65,041 32,703 24,600 Long-term financial assets Long-term equity investments ,940 0 Loans Other financial assets 2,685 2,502 2,016 Deferred tax resulting from temporary differences B.3. 2,511 1,571 1,274 Deferred tax resulting from tax loss carryforwards B.3. 4, Other assets Total non-current assets 153, ,307 63,952 Total assets 360, , ,939
13 BALANCE SHEET 13 EQUITY AND LIABILITIES (in 000) Notes Jun. 30, Dec. 31, Jun. 30, Current liabilities Short-term loans and current portion of long-term loans 1, Trade accounts payable 69,892 98,987 49,962 Prepayments received 2,072 6,560 1,810 Other current financial liabilities B.4. 1,718 1,947 1,250 Provisions B.5. 4,562 2,491 1,616 Deferred income 2,625 1,397 1,125 Income tax liabilities 3,578 1,889 2,004 Other current liabilities B.6. 18,367 20,624 15,431 Total current liabilities 104, ,665 74,138 Non-current liabilities Long-term loans 4,009 4,813 4,753 Convertible bond B.7. 38, Profit participation capital and subordinated loans 6,114 5,926 5,752 Deferred income 2,909 3,249 3,849 Deferred taxes from temporary differences B.8. 12,837 5,210 2,847 Pension provisions Other non-current financial liabilities B.9. 1,750 1,744 1,827 Other non-current liabilities B.5. 10,505 2,866 1,998 Total non-current liabilities 76,547 23,918 21,149 Equity capital Capital stock 14,616 14,616 11,430 Capital reserves 100,525 94,578 26,086 Net retained profits (including revenue reserves) 54,186 53,616 45,880 Equity difference resulting from currency translation and price changes Minority interests 10, Total equity capital 179, ,873 83,652 Total liabilities 360, , ,939
14 CONSOLIDATED STATEMENT OF INCOME 14 CONSOLIDATED STATEMENT OF INCOME 1 Q2 6 months (in 000) Notes Apr. 1 - Jun. 30, Apr. 1 - Jun. 30, Jan. 1 - Jun. 30, Jan. 1 - Jun. 30, Sales revenues 189, , , ,129 Other operating income D Other own work capitalized , Gross revenue for the period 190, , , ,884 Cost of materials and purchased services -127,124-94, , ,334 Gross profit 63,080 45, ,882 89,550 Personnel expenses D ,627-30,886-82,980-61,438 Depreciation on property, plant and equipment and amortization of intangible assets -6,024-2,352-11,368-4,506 Other operating expenses D ,141-7,083-19,467-13,350 Operating result 5,288* 5,434* 10,067* 10,256* 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 4,914 5,239 9,458 9,844 COMMENT The following comments of the Executive Board are not part of the consolidated financial statement (IFRS): * The operating result according to the consolidated statement of income is negatively affected by amortizations pursuant to IFRS for purchase price allocation (ppa) and as if adjusted. Amortizations are one-time in case of any acquistion and noncash, that means they decline over time. That will lead to a relative improvement of operating result in the future. IFRS amortizations from purchase price allocation (PPA) Q2/ Q2/ operating result (in million) PPA as-if PPA as-if *operating result in million H1/ H1/ PPA as-if PPA as-if *operating result in million
15 CONSOLIDATED STATEMENT OF INCOME 15 CONSOLIDATED STATEMENT OF INCOME 2 Q2 6 months (in 000) Notes Apr. 1 - Jun. 30, Apr. 1 - Jun. 30, Jan. 1 - Jun. 30, Jan. 1 - Jun. 30, Income tax D.4. -1,585-1,550-3,051-2,965 Earnings after taxes from continuing operations 3,329 3,689 6,407 6,879 Earnings from discontinued operations Net income/ loss for the period 3,229 3,689 6,307 6,879 thereof attributable to the stockholders of the parent company 3,304 3,626 6,417 6,793 thereof attributable to minority interests D Average number of stocks outstanding (basic) 14,615,791 11,429,826 14,615,791 11,429,826 Average number of stocks outstanding (diluted) ,429,826 15,175,625 11,429,826 Earnings per stock from continuing operations (basic) in EUR 0.23** 0.32** 0.45** 0.59** 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 COMMENT The following comments of the Executive Board are not part of the consolidated financial statement (IFRS): ** The earnings per stock according to the consolidated statement of income is negatively affected by amortizations pursuant to IFRS for purchase price allocation (ppa) and as if adjusted. Amortizations are one-time in case of any acquistion and noncash, that means they decline over time. That will lead to a relative improvement of earnings per stock in the future. IFRS amortizations from purchase price allocation (PPA) Q2/ Q2/ Earnings per stock (in ) PPA as-if PPA as-if ** Earnings per stock in H1/ H1/ PPA as-if PPA as-if ** Earnings per stock in
16 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 16 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Q2 6 months (in 000) Apr. 1 - Jun. 30, Apr. 1 - Jun. 30, Jan. 1 - Jun. 30, Jan. 1 - Jun. 30, Net income/ loss for the period 3,229 3,689 6,307 6,879 Other comprehensive income Currency translation differences Income tax Other comprehensive income for the period (after taxes) Comprehensive income for the period 3,179 3,687 6,261 6,878 thereof attributable to the stockholders of the parent company 3,254 3,624 6,371 6,792 thereof attributable to minority interests
17 STATEMENT OF CASH FLOWS 17 STATEMENT OF CASH FLOWS (in 000) Jan. 1 - Jun. 30, Jan. 1 - Jun. 30, Cash flow from ordinary activities Profit for the period before taxes and minority interests 9,458 9,844 Adjustments +/- Depreciation on property, plant and equipment and amortization of intangible assets 11,368 4,506 +/- 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, /- Changes in trade accounts receivable and other accounts receivable 8,901-5,773 +/- Changes in trade accounts payable and other accounts payable -43,557-30,874 +/- Interest paid and refunded /- Income taxes paid and refunded -5,284-4,810 +/- Non-cash expenses/ income /- Cash inflow/outflow discontinued operations Net cash from operating activities -21,637-27,796 Cash flow from investing activities +/- Acquisition of subsidiaries and equity instruments of other companies -30, /- Cash acquired on the purchase of stocks 17, Cash inflow from sale of former consolidated subsidiaries Payments for additions to intangible assets and property, plant and equipment -16,553-5,287 + Income from disposal of intangible assets, property, plant and equipment, and long-term financial assets Interest received Net cash used in investing activities -28,853-5,572 Cash flow from financing activities +/- Capital stock increase expenses Cash inflow from convertible bond 45, Repayment of long-term borrowings (including current portion) /- Changes in short-term borrowings Interest paid Dividends paid -5,847-4,000 +/- Cash inflow/ outflow from finance lease Net cash used in financing activities 37,850-5,148 Net increase/ decrease in cash and cash equivalents -12,640-38,516 +/- Exchange rate-related changes in cash /- Cash and cash equivalents at beginning of period 77,733 44,638 Cash and cash equivalents at end of period 65,047 6,121 Breakdown: Cash and cash equivalents 65,047 6,121 65,047 6,121
18 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 18 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS) Stock Capital stock Capital reserves Retained earnings Reserves for currency translation Reserves for securities price changes Revaluation reserve Net retained profits Total investors parent company Minority interests Total equity capital units 000 in in in in in in in in in in December 31, ,430 11,430 26,086 25, ,034 80, ,774 Capital stock increase 3,186 3,186 69,529 72,715 72,715 Change in reserves: Capital stock increase costs -1,037-1,037-1,037 Transfer net retained profits / revenue reserves 3,391-3, Distribution in fiscal year -4,000-4, ,040 Comprehensive income for the period ,529 14, ,461 December 31, 14,616 14,616 94,578 28, , , ,873 Capital stock increase Change in reserves: Capital stock increase costs Convertible bonds 5,944 5,944 5,944 Transfer net retained profits / revenue reserves 6,023-6, Distribution in fiscal year -5,847-5, ,847 Comprehensive income for the period ,417 6, ,261 Acquisition of minority interests 0 10,358 10,358 June 30, 14,616 14, ,525 34, , ,249 10, ,592
19 SEGMENT INFORMATION 19 Segment information IFRS Segment information Cloud solutions IT solutions Jun. 30, Jun. 30, Jun. 30, Jun. 30, Sales revenues - External sales 46,484 21, , ,037 - Intersegment sales Total sales revenues 46,848 21, , ,069 - Cost of materials and purchased services -23,476-12, , ,625 - Personnel expenses -9,990-2,987-68,986-56,146 - Other income and expenses -2, ,690-10,728 EBITDA 10,836 4,489 16,271 13,570 - Depreciation and amortization -2, ,350-3,914 Operating income (EBIT) 7,927 3,993 7,921 9,656 - Interest income Interest expenses Share in profit or loss of joint ventures accounted for by the equity method Result from ordinary activities 8,012 3,954 7,288 9,152 - Currency translation gains/ losses Earnings before taxes 8,012 3,954 7,288 9,152 - Income tax - Discontinued operations Consolidated net income thereof attributable to the stockholders of the parent company thereof attributable to minority interests Other information - Assets 1 56,299 8, , ,626 - investments 1 35, ,412 5,784 1) Assets and investments including goodwill from capital consolidation 2) Tax assets
20 SEGMENT INFORMATION 20 Totals Other companies Reconciliation Consolidated Jun. 30, Jun. 30, Jun. 30, Jun. 30, Jun. 30, Jun. 30, Jun. 30, Jun. 30, 374, , , , , , , , , ,334-78,976-59,133-4,004-2, ,980-61,438-16,236-11, ,926-12,595 27,107 18,059-5,672-3, ,435 14,762-11,259-4, ,368-4,506 15,848 13,649-5,781-3, ,067 10, ,300 13,106-5,835-3, ,465 9, ,300 13,106-5,835-3, ,458 9,844-3,051-2,965-3,051-2, ,307 6,879 6,417 6, Reconciliation 2 296, ,348 54,703 1,594 9,748 1, , , ,305 5,796 5, ,480 5,836