Quarterly Report P&I AG Inhaltsverzeichnis Lagebericht KONZERNBILANZ MORE VALUE 9-MONTHLY REPORT

Transcription

1 Quarterly Report P&I AG Inhaltsverzeichnis Lagebericht KONZERNBILANZ MORE VALUE 9-MONTHLY REPORT P&I PERSONAL & INFORMATIK AG 1 APRIL DECEMBER 2006

2 9-monthly Report P&I AG Foreword Dear shareholders, ladies or gentlemen, In this first nine months, P&I AG has again shown stronger growth than most other market participants. With sales of 38 million euros, we are 5 % above the previous year s value. The EBIT rose by 12.3 % to 8 million euros, corresponding to an EBIT margin of 21 %. The number of new customers has also risen markedly. Despite this, were not able to hold Licensing sales at the previous year's level. Nevertheless, we will have made up for this by fiscal year-end, with the realisation of large projects which were planned for the third quarter and postponed to the fourth quarter. Payroll, our core business, continues to be sound, showing decided growth. However, showing themselves to be real accelerators of growth are the HR and time management modules. In earlier years, only two in ten projects included these extra components. But in this fiscal year, the ratio has zoomed to seven in ten. Moreover, our add-on business with existing Payroll customers has grown considerably, as we can now provide an important, not to say necessary, supplement to Payroll with the time management module. Internal structuring of the individual projects has changed meaningfully this fiscal year. In the past, our customers purchased licences, and through standardisation, we could achieve considerable reductions in consulting days per project. Now, our new customers are demanding more than just implementation and training programmes. The demand for comprehensive solutions and on-going product-related service is becoming ever more forceful. Participation in training courses has also risen markedly, so that despite a fall-off in implementation services, revenues from Consulting are on a growth path, lying at present at 17 % above the previous year's value. Our organic growth flows into the high level of investment in our products in respect to both technological development and functionality. An increasingly significant agent of acceleration is the BPO provider market. These providers are also becoming more and more important for our business development, as their own growth trajectory creates a constant demand for our licences, without P&I having to engage in active selling. The acquisition of KSL GmbH with effect from January 1, 2007 will lead to even greater growth. When making acquisitions, we take care that in addition to growth in sales, the purchase should enlarge P&I's potential. We have identified three strands: extension of our product portfolio; gain of new expertise; and access to particular market segments. With KSL, we gain specialist knowledge in the local

3 9-monthly Report P&I AG Foreword government field and access to smaller municipalities and district administrations. In the future, we will be offering a solution for this market segment, based on P&I SMART, and which can be up and running after two or three Consulting days. Looking to the future, we expect continued expansion of our growth potential through close cooperation with large BPO providers. Cooperation of this kind will result in increased turnover in Licensing, since BPO providers operate very effective sales organisations. We will be collaborating in the areas of software development, provision of services for the end customer and also in sales and marketing. Such partnerships, where the entire service portfolio of a BPO provider can be relevant, represent a completely new market segment, and one with great opportunities for growth. The successful financial figures P&I posts quarter after quarter are evidence of the sustainability of our strategy. Currently, the Company's business activities can generate yearly growth of 10 % in Licensing, with a resulting profitability of 20 %. And yet, this is not enough. The BPO business model mentioned reveals opportunities for even greater expansion, without sacrificing profitability. As you can see, P&I is fighting fit and ready for the future! Yours faithfully Vasilios Triadis P&I AG CEO / Chairman of the Board

4 9-monthly Report P&I AG Key Figures Group KEY FIGURES acc. to IAS Changes Changes in 000 euro percent Group sales 38,071 36,255 1, % Result before depreciation (EBITDA) 10,457 9, % Result before interest and taxes (EBIT) 7,992 7, % Consolidated result (DVFA/SG) 5,298 4, % Number of Employees (average) % Earning per share (DVFA/SG) % Highlights P&I growth continues: Profits rise with growing sales in the Q3 report Business development for P&I in the third quarter of fiscal 2006/2007 again featured rising sales and profits. Total sales for the first nine months of the fiscal year amounted to 38.1 million, representing organic growth of 5.0 % compared with the same period in the previous year. The operating result (EBIT) rose by 0.9 million to 8.0 million. The EBIT margin rose from 19.6 % to 21.0 %. P&I LOGA Time Management With the new, fully integrated time management, P&I's all-in-one HR management solution is winning over the market. The recently-developed facility for web based HR planning enables planning, oriented to shifts or individual requirements, also offering solutions for hospitals, for service sectors with peak time transactions or for call centres. P&I takes KSL over On January 1, 2007 P&I Personal & Informatik AG took over KSL Gesellschaft für kommunale Informationssysteme mbh based in Zweibruecken, Germany, thus reinforcing P&I's capabilities in the public administration market segment.

5 9-monthly Report P&I AG Consolidated Balance Sheet Consolidated Balance Sheet acc. to IAS not verified verified in 000 euro Assets Short term assets Inventories Receivables and other assets 10,881 10,543 Cash 5,136 25,240 Available-for-sale financial assets 6,677 14,874 Other short financial assets Total short financial assets 23,476 51,741 Long term assets Customer base 8,597 10,298 Other intangible assets 984 1,311 Tangible assets Financial assets Deferred taxes Total long term financial assets 10,804 12,716 Total assets 34,280 64,457

6 9-monthly Report P&I AG Consolidated Balance Sheet Consolidated Balance Sheet acc. to IAS 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 14,012 31,815 Total shareholders' equity 20,956 38,799 Long term liabilities Deferred taxes liabilities Other long term obligations 11 0 Total long term liabilities Short term liabilities Other short term liabilities 6,481 6,743 Trade payables 1,253 1,662 Tax liabilities 3,725 3,070 Payments received / PRAP Deferred revenues ,175 Total short term liabilities 12,545 25,062 Total equity and liabilities 34,280 64,457

7 9-monthly Report P&I AG Consolidated Statement of Income 9-monthly Report P&I AG Consolidated Statement of Income Consolidated Statement of Income Quarterly financial Quarterly financial 9-monthly report 9-monthly report acc. to IAS statement statement statement statement 1.7. to to to to in 000 euro / not verified Sales 14,009 14,001 38,071 36,255 Cost of sales 4,764 4,348 11,921 10,963 Gross profit from sales 9,245 9,653 26,150 25,292 Research and development expenses 2,588 2,481 7,474 7,147 Sales and distribution expenses 1,980 2,443 6,180 6,209 Administrative expenses ,806 2,760 Write down of goodwill ,702 1,702 Other operating income Other operating expenses Result of ordinary activities (EBIT) 3,332 3,292 7,992 7,119 Income from investments Financing expenses Currency translation gains Currency translation losses Result of ordinary activities before tax 3,479 3,503 8,723 7,729 Tax expenses *) 1, ,425 2,753 Net income for the year acc, to DFVA/SG 2,097 2,545 5,298 4,976 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 9-monthly Report P&I AG Cash Flow Statement, Group Cash Flow Statement 9-monthly financial 9-monthly financial acc. to IAS statement statement in 000 euro / not verified Consolidated result before taxes on income and interest 7,992 7,119 Depreciation on fixed assets 2,465 2,452 Depreciation / appreciation on short term investments 0-89 Changes in accruals for pensions 0-4 Changes in inventories, trade receivables and other assets Changes in liabilities and other equity and liabilities - 14,132-12,988 Other items not affecting payments Payables received from operating activities Net funds from operating activities - 4,588-4,963 Net funds from investing activities 7,584-1,908 Net funds from financing activities - 23,100-6 Decrease in liquid resources - 20,104-6,877 Liquid resources at the beginning of the fiscal year 25,240 19,393 Liquid resources at the end of the reporting period 5,136 12,516 Breakdown of funds at the end of the reporting period Cash on hand and in bank balances 5,136 12,516 Securities with an expiry date > 1 year 6,677 14,248 Liquidity 11,813 26,764

9 9-monthly Report P&I AG Change in Shareholders' Equity Change in Shareholders' Equity 9-monthly 9-monthly Annual financial financial financial statement statement statement /2006 not verrified not verrified verrified in 000 euro Shareholders' equity at the beginning of the reporting period 38,799 31,534 31,534 Subscribed capital Capital reserve ,780 Revenue reserve Other shareholder's equity Balance sheet result - 17,803 4,976 26,175 Shareholder's equity at the end of the reporting period 20,956 36,418 38,799 Orders Orders on hand for the next twelve months amount to 32.8 million as at December 31, Of these, 21.4 million attributable to maintenance business. After 11.6 million in the first quarter (previous year: 11.0 million) and 12.5 million in the second quarter (previous year: 11.3 million) sales in the second quarter amounted to 14.0 million (previous year: 14.0 million). Sales for the nine months of 38.1 million represented a year-on-year increase for the comparable period of 1.8 million or 5.0 %. Profit situation and cost development The operating result rose by 0.9 million to 8.0 million. The EBIT margin rose from 19.6 % to 21.0 %. Operating costs after nine months amounted to 28.5 million compared with 27.5 million in the comparable period in the previous year. The increase in costs for the P&I Group amounted to 3.7 %, as against a 5.0 % increase in sales. The increase in EBIT resulted from growth in revenue from product sales and also Consulting. Research & Development Investment of 7.5 million was made in Research and Development for product improvement, updates for changes in legislation and collective bargaining arrangements-agreements, and development of new technologies. A new development is the P&I LOGA Analyse module, which allows individual analysis of salary statements. As a first step, P&I has made the module capable of analysing the gross wage type. With this P&I product, HR clerks and systems administrators can provide swift and uncomplicated responses to queries from employees regarding their payslips. Other priorities for product improvement are the development of web based personnel scheduling and time management in the C/S (Client/Server) area and web portals as well as a project time recording function. Currently, the web based personnel scheduling functionality is being developed in two directions at the moment: shift-oriented (for example hospitals)

10 9-monthly Report P&I AG Notes including Segment Reporting and need-oriented (for example peak time transactions or call centres). During the last quarter, a merchandise management system was linked to the web portal demonstrating the again the integration of P&I workflows in other business areas. Investments Fixed investments amounting to 536,000 have been made. Shareholdings by the company and executive bodies As at December 31, 2006, neither P&I Personal & Informatik 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 December 31, As at December 31, 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 have been determining factors in the growth in sales in the first nine months of fiscal 2006/2007. The service providing area proved to be the most significant engine of growth. P&I increased the previous year's result by 2 million to 13.3 million, with 35 % of revenues coming from the Consulting/SI business area. Sales of 15.2 million were attained in maintenance business. In comparison with sales for the comparable period in the previous year, this represents an increase of 1.2 million or 8.6 %, being the result of last year's strong licensing sales. The Maintenance business area generated 40 % of Group sales. Licensing business remained below the previous year s level with 8.3 million ( 9.8 million). Although many medium and smaller-sized projects have been realised in the course of the year, there were no major contracts, such as those concluded in the comparable period of last year. The geographical segment result for the first three quarters is set out as follows: '000 euro Sales Germany 32,138 30,135 International 5,933 6,120 Group 38,071 36,255 EBIT Germany 7,229 5,958 International 763 1,161 Group 7,992 7,119

11 9-monthly Report P&I AG Notes including Segment Reporting Employees As at December 31, 2006, P&I employed 299 staff, 253 in Germany and 46 abroad. If part-time jobs are taken proportionally into account, this represents an average FTE (employment quotient) of 270 in the reporting period, with 224 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. In the ordinary Annual General Meeting of August 29, 2006, payout of a dividend of 3.00 per share was resolved on. There are two components to the dividend: one part from a one-off extra dividend from the repayment of a capital reserve of 18,780,000, and the other from approximately 50 % of the profits carried forward as well as of the annual profit 2005/2006 for P&I AG of 44,320,000. With 7,700,000 shares issued which are entitled to a dividend for fiscal 2005/2006, the sum to be distributed amounted to 23.1 million, and was paid out to shareholders on August 30, Miscellaneous The annual general meeting for this year took place on August 29, All decisions were taken in line with the recommendations of the management. 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. Plönzke of Wiesbaden to the Supervisory Board was confirmed. With effect from January 1, 2007 P&I Personal & Informatik AG has taken over the company, KSL Gesellschaft für kommunale Informationsysteme mbh, based in Zweibrücken, Germany, as a 100 % subsidiary. KSL creates, sells and maintains the HR software product BAGE2000, principally in the area of public administration, providing related consultation and training. KSL numbers approximately 300 local government bodies among its customers. The purchase price was in the low (single-digit) millions. The takeover of KSL will reinforce P&I's capabilities in the public administration field and further consolidates its market position. P&I is now one of the leading providers of HR management software in the public administration market segment. As yet, P&I has exerted no significant influence on the KSL Group. This acquisition was made too close in time to the compilation of the 9-monthly report to have allowed the provision of further details as required under IFRS 3.67 (revised 2004). In the first nine months of fiscal 2006/2007, the Company has received no information regarding investments as defined by 21 Para. 1 of the German Securities Trade Act (WpHG).

12 9-monthly Report P&I AG Notes including Segment Reporting 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. As a consequence of its modified Product and Market strategy as a provider of integrated software solutions, and as well, the altered internal control mechanisms in operational areas, the Company is reporting for the first time on business area according to field of activity in its segment reporting in fiscal 2006/2007. These business areas are divided into the categories of Product (Licensing and Maintenance), Consulting/Systems Integration, and Other. Up to now, product specific areas of Loga Payroll and Loga HRMS have been combined, as it was not possible to separate the product improvement, sales activities and consulting services of the former sectors. The previous year's figures have been adjusted to the segmenting. 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 result in the 3rd quarter, as well as the nine-month result are in line with our expectations of sales and earnings. At the same time, P&I can confirm the forecasts for the whole of 2006/2007: a rise in sales through organic growth of around 10 % and the EBIT margin established long-term at around the 20 % mark. Business development in the first nine months of fiscal 2006/2007 has brought significant progress for P&I. This shows: that our strategy for organic growth works. P&I is interesting for many customers. We are confident that we will achieve these goals. P&I is one of the most successful enterprises in the software industry. The addition of time management to our payroll accounting and HR management solution is a major contributing factor to this success. The diversification of our product portfolio in the shape of a unified, integrated all-in-one solution has convinced the market and is the engine of our organic growth. Almost 100 of our customers have opted for our new time management module. The high performance and top technological standards offered by 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. Wiesbaden, February 8, 2007 The Board of Directors

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 300 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