Quarterly Report P&I AG Inhaltsverzeichnis Lagebericht KONZERNBILANZ MORE VALUE HALF-YEARLY REPORT

Transcription

1 Quarterly Report P&I AG Inhaltsverzeichnis Lagebericht KONZERNBILANZ MORE VALUE HALF-YEARLY REPORT P&I PERSONAL & INFORMATIK AG 1 APRIL SEPTEMBER 2006

2 Half-yearly Report P&I AG Foreword Dear shareholders, Dear Sir or Madam, In this quarterly report, I am once again able to announce pleasing news.the second quarter sees us having completed an outstanding first half year. We have achieved our ambitious goals, and proved that our strategy results in sustained growth in sales and earnings. And we see here confirmation of our estimates for our annual targets. A significant factor in this success has been the addition of time management to our payroll accounting and HR management solution. This diversification of our product portfolio in the shape of a unified, integrated all-in-one solution is winning over the market and is the engine of our organic growth. In the meantime, just about all of our 100 customers have opted for our new time management module (for example, Hellmann Logistics, Panasonic, Triumph International, Gardeur, Air Berlin, and the public works departments of the cities of Erlangen and Stralsund). Business development on the German market has been extremely positive, especially in the market segments of public administration and manufacturing. We brought around 80 new customers on board in the first half year, including such firms as Felina, Gardeur, Klinikum Krefeld (academic hospital), the Oberlausitz hospital group, and the Weser-Ems AWO (Workers Welfare Association). We have seen positive development as well with our new service for customers who commission software and support from us on the basis of our Managed Application Service (MAS). At our MAS centre, we are successfully providing support to our first customers - for example, GAG Immobilien AG (real estate) and the regional administration of Traunstein. Successful operations in the short-term are not only confirming the considerable market potential for such services. They also show that major competitive advantage lies in obtaining all the services we offer - hosting, launching, providing continuing support and software maintenance - from one service provider. The integration of HR management, payroll accounting and time management into one solution offers our customers new perspectives, though most have only just begun to appreciate the scope. However, one of our customers, Burger King in Munich, is already a step ahead. During the installation of the system, existing HR management processes were adapted to the new possibilities P&I software offers today. As a result, the restaurant manager, after entering certain benchmark figures, can print out an employment contract at the touch of a button via the web platform, without having to consult legal experts on German labour legislation. On clearance of the employment contract (after being signed by the new employee) the employee can immediately begin recording his/her hours in the system. And there is more to this solution. For service providers with a strongly fluctuating order situation (customer frequency, for example) it is highly important to take the KPIs of each branch into account in the deployment of personnel. Taking into consideration past sales figures, customer count, and so on, per day of the week and period, the integrated P&I HCM module supports the restaurant manager in planning the deployment of personnel for the week.

3 Half-yearly Report P&I AG Foreword Our software development activities are not confined to the expansion of our HR management solutions. Through continuing changes in the areas of income tax, social security, and collective bargaining agreements, software solutions become increasingly complex. This has occasioned us to invest in the area of knowledge transfer. As from January 2007, we will be making a new, interactive functionality available to answer questions concerning calculation logic. We take into account the different groups of users with their varying levels of expert knowledge: the actual employees, the HR clerks, the officers responsible for system administration and integration, and lastly, the software developers. In P&I LOGA Analyse there is an operating platform for each of these four groups, where processing and exchange of information take place according to the particular level of knowledge of the group. The first half year has shown us that we are set to meet our ambitious targets through our numerous projects with medium-sized companies and regional and municipal authorities. And on top of this, entering on large projects with internationally-active computer centres or state government authorities holds out the prospect of exceeding our own targets. One of the biggest openings here is the adoption of the P&I PLUS system for deployment planning by the Brandenburg state police force. Our tender was accepted in September and the contracts were finalised in October. Brandenburg is now the fourth state police force administration to use P&I PLUS, following North-Rhine Westphalia, Lower Saxony and Bavaria. To sum up, we can say that our organisation is well-placed to realise our growth targets. The additional prospects through major projects are of even exceeding our targets. The guarantee for sustainability of this success is our software, which ranks among the leading HR solutions both in terms of functionality and technology, teamed with our efficient sales organisation and very competent consulting team. I have no hesitation in saying that I see P&I as being in very good shape for the future. Yours faithfully Vasilios Triadis P&I AG CEO / Chairman of the Board of Directors

4 Half-yearly Report P&I AG Key Figures Group KEY FIGURES - GROUP Change Change in 000 euro percent Group sales 24,062 22,254 1, % Earnings before depreciation (EBITDA) 6,310 5, % Earnings before interest and taxes (EBIT) 4,660 3, % Group result (DVFA/SG) 3,201 2, % Number of Employees (average) % Earnings per share (DVFA/SG) % Highlights Profits rise with growth in sales in first half of fiscal 2006/2007 Growth in sales of 8.1 % for P&I means the achievement of an operating result (EBIT) of 4.7 million and represents a rise of 0.8 million over the same period year-on-year. The EBIT margin rose from 17.2 % to 19.4 %. P&I LOGA Analysis The new product, P&I LOGA Analyse was presented to the public for the first time at the P&I User Conference in September. It enables analysis of salary statements in individual cases, and supports HR clerks and systems administrators in providing swift and uncomplicated responses to queries from employees regarding their payslips. First dividend distribution The AGM decided on a first distribution of dividends. The dividend amounted to 3.00 euros, constituting a regular dividend of 0.56 euros per share and a one-off extra dividend of 2.44 euros per share. Both components of the dividend were paid out to the shareholders immediately.

5 Half-yearly Report P&I AG Consolidated Balance Sheet Consolidated Balance Sheet not verified verified in 000 euro Assets Short term assets Inventories Trade receivables 10,469 10,543 Cash 4,640 25,240 Available financial assets 8,206 14,874 Other short term assets Total short term assets 24,066 51,741 Long term assets Customer base 9,164 10,298 Other intangible assets 1,072 1,311 Tangible assets Financial assets Deferred taxes Total long term assets 11,441 12,716 Total assets 35,507 64,457

6 Half-yearly Report P&I AG Consolidated Balance Sheet Consolidated Balance Sheet not verified verified in 000 euro Equity and Liabilities Sharholders' equity Subscribed capital 7,700 7,700 Capital reserve Revenue reserve Other equity Balance sheet profit / loss 11,916 31,815 Total shareholders' equity 18,886 38,799 Long term liabilities Deferred taxes Long term finance lease obligations 2 0 Total long term liabilities Short term liabilities Other short term liabilities 5,867 6,743 Trade payables 1,412 1,662 Obligations from taxes on income 3,037 3,070 Payments received an account / PRAP Deferred sales 4,761 13,175 Total short term liabilities 15,924 25,062 Total equity and liabilities 35,507 64,457

7 Half-yearly Report P&I AG Consolidated Statement of Income Half-yearly Report P&I AG Consolidated Statement of Income Consolidated Statement of Income 3-monthly report 3-monthly report Half-yearly report Half-yearly report in 000 euro / not verified Sales 1 2, ,294 24,062 22,254 Cost of sales 3,917 3,410 7,157 6,615 Gross profit from sales 8,570 7,884 16,905 15,639 Research and development expenses 2,366 2,269 4,886 4,666 Sales and distribution expenses 2,155 1,945 4,200 3,766 Administrative expenses ,920 1,798 Write-down of goodwill ,134 1,134 Other operating income Other operating expsenses Result of ordinary activities (EBIT) 2,644 2,204 4,660 3,827 Income from investments Financing expenses Currency translation gains Currency translation losses Result of ordinary activities before tax 3,008 2,396 5,244 4,226 Tax expense *) 1,240 1,036 2,043 1,795 Net income for the year acc, To DFVA/SG 1,768 1,360 3,201 2,431 Average number of shares issued (undiluted) 7,700,000 7,700,000 7,700,000 7,700,000 Average number of shares issued (diluted) 7,700,000 7,700,000 7,700,000 7,700,000 Earnings per share in euro, undiluted/diluted *Taxes paid or due on corporate income and earnings are shown as taxes on income, as well as tax accruals and deferrals,

8 Half-yearly Report P&I AG Cash Flow Statement, Group Cash Flow Statement, Group Half-yearly report Half-yearly report in 000 euro / not verified Consolidated result before taxes on income and interest 4,660 3,827 Depreciation 1,651 1,636 Profit from disposal of tangible and intangible assets 1 0 Changes in pensions 0 11 Changes in inventories, trade receivavles and other assets Changes in liabilities and other equity and liabilities - 9,798-9,284 Other expenses/income not affecting the balance sheet Payments from operating activities Net funds from operating activities - 3,742-3,617 Net funds from investing activities 6,242-1,758 Net funds from financing activities - 23,100-4 Decrease/increase in liquid resources - 20,600-5,379 Liquid resources at the beginning of the reporting period 25,240 19,393 Liquid resources at the end of the reporting period 4,640 14,014 Breakdown of funds at the end of the reporting period Cash on hand and in bank balances 4,640 14,014 Securities with an expiry date > 1 year 8,206 14,348 Liquidity 12,846 28,362

9 Half-yearly Report P&I AG Change in Shareholders' Equity Change in Shareholders' Equity Half-yearly Half-yearly Annual report report report in 000 euro /2006 Shareholders' equity at the beginning of the period 38,799 31,534 31,534 Subscribed capital Capital reserve ,780 Revenue reserve Other shareholder's equity Balance sheet result - 19,899 2,431 26,175 Shareholder's equity at the end of the period 18,886 33,936 38,799 Orders and Sales Orders on hand for the next twelve months, amount to 33.1 million euros as at 30 September, Of these, 20,4 million euros attributable to maintenance business. After 11.6 million euros in the first quarter (previous year: 11.0 million euros), sales in the second quarter amounted to 12.5 million euros (previous year: 11.3 million euros). Sales of 24.1 million euros for the six months represented an increase of 1.8 million euros or 8.1 % over the comparable period year-on-year. Financial situation and Cost development The operative result has increased by 0.8 million euros to 4.7 million euros. The EBIT margin has risen from 17.2 % to 19.4 %. Operating costs for the first six month of the 2006/2007 fiscal year amount to 18.4 million euros compared to 17.4 million euros in the same period for the previous year. This means that costs in the P&I Group increased by 5.8 %, which however is set against a 8.1 % increase in sales. The EBIT increase results in the main from sales growth in product sales as well as in the consulting division. Research & Development In Research and Development, 4.9 million euros have been invested for product improve ment, updates for changes in legislation and collective bargaining arrange ments as well as new technical developments. A new development is the P&I LOGA Analyse module, which enables analysis of salary statements in individual cases. As a first step, P&I has made the module capable of analysing the gross wage type. HR clerks and systems administrators can provide fast and uncomplicated responses to queries from employees regarding their payslips. Further main focus points in product development have been the development of web-based personnel planning and time management in the C/S division and web portal, as well as the

10 Half-yearly Report P&I AG Notes including Segment Reporting new project time management functionality. Web-based personnel planning is currently being expanded in two directions: shift oriented (e.g. hospitals) and demand oriented (e.g. high volume periods for call centres). Investments Fixed investments amounting to 363,000 euros have been made. Shareholdings by the company and executive bodies As at 30 September, 2006, neither P&I AG nor any other company have a shareholding in P&I s own shares pursuant to 160 Para. 1 No. 2 AktG (German Companies Act). No convertible bonds or similar securities pursuant to 160 Para. 1 No. 5 AktG had been issued as at 30 September, As at 30 September, 2006, Members of the Board of Directors or of the Supervisory Board are not holding any P&I shares or stock options. Segment reporting Marked increases in both Maintenance and Consulting were determining factors in the growth in sales in the first half of the fiscal year. Sales of 10.1 million euros were attained in Maintenance business. In comparison with sales in the comparable period year-on-year, this represents an increase of 1.0 million euros, or 11.1 %, arising out of stronger licensing sales in recent years. Maintenance business generated 42 % of Group sales. Sales in the service division have increased by 12.0 % or 0.8 million euros. In the Consulting/SI division P&I has achieved 32 % of its sales, increasing to 7.7 million euros (6.8 million euros in the same period last year). Licencing business was down slightly compared to this period last year, at a total of 5.7 million euros (same period last year: 5.8 million). In the first six month of the 2006/2007 fiscal year, a large number of medium-sized and small projects were completed: in comparison, no major project was generated comparable to that in the same period last year. The segment result expenses are set out as follows. '000 euro HY 2006/2007 HY 2005/2006 Sales Germany 20,360 19,423 International 3,702 2,831 Group 24,062 22,254 EBIT Germany 4,232 4,103 International Group 4,660 3,827

11 Half-yearly Report P&I AG Notes including Segment Reporting Employees As at 30 September, 2006, P&I employed 297 staff, 252 in Germany and 45 abroad. If part-time jobs are taken proportionally into account, this represents an average FTE (employment quotient) of 266 in the reporting period, with 220 employed in Germany and 46 abroad. Dividends The net profit shown in the annual financial statements of P&I Personal & Informatik AG is, pursuant to the German Companies Act, material to a dividend distribution. At the ordinary Annual General Meeting of August 29, 2006, the payout of a dividend of 3.00 euros per share was resolved on. The dividend will consist of two components: a one-off special dividend from a repayment from capital reserves of 18,780,000 euros, and approximately 50 % of the profit carried forward and P&I AG s net earnings for fiscal 2005/2006, at 4,320,000 euros. With 7,700,000 shares issued entitled to a dividend for fiscal 2005/2006, the sum to be distributed amounted to 23.1 million euros, which was paid to shareholders on August 30, Miscellaneous The Annual General Meeting for this year took place on August 29, All decisions were made according to the recommendations of the executive board responsible. For the first time since P&I s listing on the stock exchange in 1999, payment of a dividend was resolved on. Once again, a share buyback scheme was approved, as well as the motion concerning the opting out of the individual disclosure of the Board of Directors' remuneration, and an amendment to the Memorandum and Articles of Association on editorial grounds. Further, the acts of the Supervisory Board and Board of Directors for fiscal 2005/2006 were ratified unanimously by the AGM, and the appointment of Mr Klaus C. Ploenzke of Wiesbaden to the Supervisory Board was confirmed. In the second quarter of the fiscal 2006/2007, the Company received no announcements regarding investments as defined by 21 Para. 1 of the German Securities Trade Act (WpHG). Selected facts and figures The Group annual financial statements for P&I AG were prepared in compliance with the financial accounting standards of the International Accounting Standards Board (IASB) the International Financial Reporting Standards (IFRS). The accounting and valuation methods applied conform in general with those applied in the previous year. For the first time in the 2006/2007 fiscal year, the group is reporting its business according to areas of activity, due to modified product and marketing strategies, as provider of an integrated software solution and changed internal control mechanisms in operative areas, and within the framework of segment reporting. The areas of activity are defined as: product (licensing and maintenance); consulting/system integration and other. Areas such as Loga Payroll and Loga HRMS, which were previously organised specifically by product, have been merged, since product development, sales activity and consulting services of these previously separate business sectors became inseparable. Last year s figures were adjusted to the new segmentation.

12 Half-yearly Report P&I AG Notes including Segment Reporting Risks There has been no significant change in the risk profile as outlined in the Annual Report of March 31, P&I AG has a company-wide risk-management system in place to monitor and control manageable risk. Outlook for 2006/2007 The second quarter result as well as the mid-year result are in line with our expectations of sales and earnings. P&I can reaffirm its forecasts for 2006/2007: raising of sales by around 10 per cent through organic growth and establishing the EBIT margin long-term in the region of 20 per cent. We are confident that we will achieve these goals. The high performance and top technological standards of our product palette stand at the ready. Numerous companies and public institutions have recognised the potential of our integrated HR software solutions and are deciding to become P&I customers. During the first half year of fiscal 2006/2007, P&I has given ample evidence of this with a whole host of new projects. Wiesbaden, 9 November 2006 The Board of Directors Financial Calendar 8 February 2007 Publication of 9-monthly Report 2006/ June 2007 Publication of Financial Statement for 2006/ August 2007 Publication of the 3-monthly Report 2007/2008 P&I AG Investor Relations Kreuzberger Ring Wiesbaden Telefon (06 11) Fax (06 11) aktie@pi-ag.com Internet WKN ISIN DE

13 P&I YOUR PARTNER FOR INTEGRATED HR SOLUTIONS P&I is with more than 3,700 clients from all sectors one of the leading suppliers of innovative human resources managementsoftware solutions. P&I solutions encompass the entire spectrum of human resources management. P&I products can be used internationally and in all sectors. With its long-term experience, P&I is a reliable partner for system integration and system implementation. Moreover, clients also benefit from the advisory and training services offered by the P&I Academy. The company has more than 280 employees. The head office is located in Wiesbaden. In Germany, services are provided to our clients from six regional offices. P&I is present in other European countries both through national companies and through cooperation partners. P&I is listed in the Prime Standard on the Frankfurtstock exchange. GERMANY P&I AG Kreuzberger Ring Wiesbaden Telefon +49 (0) 611/ Telefax +49 (0) 611/ info@pi-ag.com AUSTRIA P&I GmbH Ares Tower Donau-City-Straße 11 A-1220 Wien Telefon Telefax info.at@pi-ag.com SWITZERLAND P&I AG Zürcherstrasse 66 CH-8800 Thalwil ZH Telefon +41(0) Telefax +41(0) info.ch@pi-ag.com THE NETHERLANDS P&I BV Kabelweg 37 NL-1014 BA Amsterdam Telefon +31 (0) Telefax +31 (0) info@pi-ag.com CZECHIA P&I s.r.o. Na Safránce 43 CZ Praha 10 Telefon 420 (2) Telefax 420 (2) info.at@pi-ag.cz SLOVAKIA P&I s.r.o. Mickiewiczowa 16 SK Bratislava Telefon +421 (0) Telefax +421 (0) info.ch@pi-ag.sk