ABRIDGED ANNUAL REPORT

Transcription

1 Jahreskurzbericht P&I AG Inhaltsverzeichnis Lagebericht KONZERNBILANZ MORE VALUE ABRIDGED ANNUAL REPORT P&I PERSONAL & INFORMATIK AG 1 APRIL MARCH 2006

2 Abridged Annual Report P&I AG Preamble Dear Shareholders, Dear Sir or Madam, After such a successful fiscal year, it is an easy task for me to address you in this foreword. Sales rose in comparison to the previous year by 11.0 % from 45 million to 50 million. The result is just as satisfactory. Year on year, Group earnings before interest and taxes (EBIT) grew by 87.1 %, from 5.2 million in the previous year, to 9.8 million. This represents yet another improvement in the EBIT margin from 11.6 % in the previous year to the present 19.6 %. The figures are confirmation of the strategy we implemented in the past fiscal year and which we will continue to pursue in the future. It is based on four cornerstones - firstly, short-term measures for improved efficiency. To achieve this, we monitor our behaviour with regard to our business objectives on a daily basis and react very fast when we see that something needs to be dealt with. In the fiscal year just ended, measures we took for example were focusing attention on licence sales in respect of the marketing process, and steadily raising our consultants level of involvement in customer projects. We want all of our employees to be absolutely clear of the extent to which their work builds P&I s success and they should ascertain for themselves whether uneconomic processes are occurring which should be avoided. Employee suggestions for improvements are always welcome they are also implemented forthwith if positively assessed by the respective department head. Targeted restructuring, in order to preclude areas where margins are weak or which are loss-making, is the second cornerstone. An instance of this is the organizational changes we made in Switzerland, where not only was a loss avoided in the same fiscal year, but a very encouraging trend in the result was apparent. Such measures are introduced on the initiative of the Board of Directors, as they involve more complex structures and procedures. The third cornerstone is our active product portfolio management. The scope of functions encompassed by our solutions must cover today what the market is going to require tomorrow. I refer to an example of this - the addition of time management to our range of concepts. We not only incorporated the ZHS time management solution when we took over the company. We also extended our P&I HCM portal solution to enable it to handle the issues of resource planning and control and personnel deployment on the basis of key business data. It is precisely this area of resource planning and control with flexibility in personnel deployment which we see as being the strategic motif of the future for HR work. Shorter innovation cycles and supply of goods and services according to demand require both flexibility in deploying personnel and the alignment of personnel costs to sales development. During the fiscal year just ended, the time management component exemplified this. In many new contracts, the fact that this important functionality was available was a deciding factor for clients when considering a payroll accounting solution, even if it was not ordered as part of the initial package. In deciding for our solutions, our customers gain the option of easily adding the module later - a unique selling point, which many new customers appreciate. We saw the same effect in the

3 Abridged Annual Report P&I AG Preamble nineties, when P&I, as one of the first providers of payroll accounting systems, was able to offer the HR management module as an integrated component of its payroll accounting software. Finally, we come to the fourth cornerstone of our strategy assessing potential acquisitions. Company take-overs are an integral part of our growth strategy. Our aim in this is always that the company in question should strengthen P&I. This is not just a matter of sales; rather, we are more concerned that the acquisitions bring extra benefits extensions to our product portfolio, specialist knowledge or improvements in our chances on entering a certain market segment. The take-over of ZHS in the fiscal year just ended is an example of product portfolio extension - by time management - and of the gain of time management know-how by our employees. We were able to attain the goal we have consistently set for ourselves of achieving an above average increase in sales and profit. Double digit growth in both, given the economic conditions in the past fiscal year, was a feat we are proud of. For the current fiscal year, the economic situation is looking distinctly healthier. Not only abroad, but also in our principal market, Germany. The marked rise in willingness to invest, however, is leading to a change in behaviour in the market. Project volume today is distinctly smaller. Businesses are negotiating very tough price agreements and investing only in areas giving a return on investment. We have accepted this situation. Supported by our expanded sales and marketing organization, we are positioned to take on considerably more projects, realizing significant rates of growth overall despite sinking volume in individual cases. We are determined that our growth shall not be limited to the anticipated upward trend in the economy. Our goal is to see the positive economic environment as a very special challenge thrown out - to generate growth and to ensure that our rate of growth clearly overtakes the economic data. Today, P&I s organizational structure means we can take on these challenges and win. Our new, flat hierarchy enables us to act fast and efficiently. True, making decisions quickly does mean running the risk of not considering all factors and thus possibly reacting in error. We can live with this swift action is of greater importance to us than striving never to put a foot wrong. We would lose our dynamism if our work became routine. This leads me to our employees. I am proud to affirm how motivated and committed our people are. The dismantling of layers of hierarchy was linked to extensive delegation of decision-making powers. This has not only shortened reporting and decision-making paths, but also has given a massive boost to motivation and caused efficiency to rise significantly. We have achieved a great deal: the foundations for the continuing success of our business have been laid. Yours faithfully Vasilios Triadis P&I Personal & Informatik AG CEO, Chairman of the Board

4 Abridged Annual Report P&I AG Key Figures - Group KEY FIGURES - GROUP 2005/ /05 Change Change in 000 euro percent Group sales 49,983 45,046 4, % Earnings before depreciation (EBITDA) 13,056 9,436 3, % Earnings before interest and taxes (EBIT) 9,782 5,229 4, % Group result (DVFA/SG) 7,395 3,381 4, % Number of Employees (average) % Earnings per share (DVFA/SG) 0,96 0,44 0, % Hightlights 2005/2006 Significant improvement in results in fiscal year 2005/2006 Growth in sales of 11.0 % for P&I boosts earnings before interest and taxes from 5.3 million euros to 9.8 million euros attaining an EBIT margin of 19.6 %. Proposal for payout of dividends At the next Annual General Meeting, the Supervisory Board and Board of Directors intend to propose distribution of a dividend of 3.00 euros per share. Integrated solutions portfolio for HR work from P&I Integration of time management into P&I LOGA / P&I HCM is now fully completed.

5 Abridged Annual Report P&I AG Consolidated Balance Sheet Consolidated Balance Sheet 31 March March 2005 in 000 euro Assets Long-term Assets Customer bases 10,298 12,017 Other intangible assets 1, Tangible assets Investments Deferred tax Total long-term assets 12,716 13,515 Short-term assets Inventories Trade receivables 10,543 8,320 Cash 25,240 19,393 Available-for-sale financial assets 14,874 14,395 Other short-term security investments Total short-term assets 51,741 42,791 Total assets 64,457 56,306

6 Abridged Annual Report Consolidated Balance Sheet Consolidated Balance Sheet 31 March March 2005 in 000 euro Equitiy and Liabilities Shareholders' Equity Subscribed capital 7,700 7,700 Capital reserve ,351 Revenue reserve Other long-term liabilities Net profit/loss 31,815 5,640 Total shareholders' equity 38,799 31,534 Long-term liabilities Deferred tax 596 1,034 Pension obligations 0 2,492 Other long-term liabilities Total long-term liabilities 596 3,650 Current liabilities Other current liabilities 6,743 5,947 Trade payables 1,662 1,178 Accrued taxes 3,070 1,186 Other accruals 13,587 12,811 Total current equity and liabilities 25,062 21,122 Total equitiy and liabilities 64,457 56,306

7 Abridged Annual Report P&I AG Consolidated Statement of Income Abridged Annual Report P&I AG Consolidated Statement of Income Consolidated Statement of Income Quarterly Report Quarterly Report Annual Report Annual Report in 000 euro Sales 13,728 12,366 49,983 45,046 Cost of sales 4,600 3,544 15,562 14,368 Gross profit from sales 9,128 8,822 34,421 30,678 Research and development expenses 2,635 3,331 9,782 10,099 Sales and distribution expenses 2,469 2,571 8,678 8,736 Administrative expenses 1, ,816 3,711 Write down of goodwill 567 1,047 2,269 2,800 Other operating income Other operating expenses Result of ordinary activities (=EBIT) 2,663 1,212 9,782 5,229 Other income from investments Other financing expenses Currency translation gains Result of ordinary activities before tax 2,876 1,614 10,605 5,913 Taxes on income ,210 2,532 Net profit for the year (DVFA/SG) 2,419 1,061 7,395 3,381 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 7,761,417 Earnings per share in euro (undiluted/diluted) 0,31 0,14 0,96 0,44

8 Abridged Annual Report P&I AG Consolidated Cash Flow Statement Consolidated Cash Flow Statement 2005/ /2005 in 000 euro Consolidated result before taxes on income and interest 9,782 5,229 Depreciation on fixed assets 3,274 4,207 Change in pension obligations - 2, Depreciation/appreciation on short term investments Changes in inventories, trade receivables and other assets - 1, Changes in liabilities and other equity and liabilities 1,088 1,828 Changes in other items not affecting payments Funds received from operating activities ,728 Net funds from operating activities 8,757 9,118 Net funds from investing activities 2,904 6,005 Net funds from financing activities Decrease/increase in liquid resources 5,847 14,148 Liquid resources at the beginning of the reporting period 19,393 5,245 Liquid resources at the end of the reporting period 25,240 19,393 Breakdown of funds at the end of the fiscal year Cash on hand and in bank balances 25,240 19,393 Avaible-for-sale securities of the current assets 14,874 14,395 Liquidity 40, ,788

9 Abridged Annual Report P&I AG Change in shareholders equity Change in shareholders equity Annual financial statement 2005/ /2005 in 000 euro Shareholders' equity at the beginning of the fiscal year 31,534 28,221 Subscribed capital 0 0 Capital reserve - 18,780 0 Revenue reserve 0 1 Other shareholder's equity Balance sheet result 26,175 3,381 Shareholders' equity at the end of the period 38,799 31,534 Orders Orders on hand for the next twelve months, amount to 32.5 million euro as at 31 March Of these, 18.3 million euros attributable to maintenance business. Cost development Operating costs for the current fiscal year 2005/2006 amount to 38.6 million euro compared to 37.2 million euro in the same period for the previous year. This means that costs in the P&I Group increased by 3.8 %, which however is set against a 11.0 % increase in sales. Research & Development In Research and Development, 9,8 million euro have been invested for product improve ment, updates for changes in legislation and collective bargaining arrange ments as well as new technical developments. Main emphasis of product development is the development of employee and management portals, enabling companies to create more efficient business processes for human resource management using Internet technology, the integration of human resource capacity planning into the P&I LOGA product family and the new P&I LOGA user interface. Investments Fixed investments amounting to 2,658,000 euros have been made. Acquisitions P&I Personal & Informatik AG acquired the ZHS group with headquarters in Wiesbaden from 1 April 2005 by notarial contract: P&I Personal & Informatik AG acquired all limited shares for ZHS Verwaltungs GmbH & Co. KG. ZHS Verwaltungs GmbH & Co. KG holds all limited shares for ZHS Zeitmanagementsysteme Hard- and Software GmbH & Co. KG, which was

10 Abridged Annual Report P&I AG Notes including Segment Reporting created by a change of group on 10 March 2005 from ZHS Zeitmanagementsysteme Hard- und Software GmbH. P&I Beteiligungs GmbH, a 100% percent subsidiary of P&I Personal & Informatik AG is full partner of both companies. The purchase price was paid in cash. The purchase price for the acquisition can be apportioned as follows: Liquid assets 502 Trade receivables 181 Stock and work-in-progress 169 Tangible fixed assets 18 Other assets 51 Deferred expenses and accrued income 6 Liabilities from accounts payable for supplies -132 Other liabilities -373 Deferred income and accrued expenses -321 Additional value of net capital 101 Established customer value 550 Software Purchase price Cash inventory on take-over -502 Outflow of funds for purchase of company The recoverability of the balance positions was checked. There are no sleeping reserves or debts. There are no contingency debts. The established customer value acquired will be depreciated over ten years, the software purchased over five years. ZHS Zeitmanagementsysteme Hard- und Software GmbH & Co. KG manufactures, sells and maintains human resource capacity planning software, supplies consultancy and training services in association with this offer, and produces terminals for time recording. The ZHS solution AZEA includes time registration, human resource planning, working time (flexitime) accounts, company data entry and access control. The acquisition enables P&I to expand its LOGA software to an all-round solution for human resource activities until now, the solution contained components for payroll and human resource management. Human resource capacity planning now completes the product portfolio as the third pillar of human resource core processes. Here, P&I has drawn the logical conclusion from the current trend within companies and administration to integrate the subareas of HR work. Users are increasingly looking for integrated solutions representing the continuous operative processes within HR management without interruption. Shareholdings by the company and executive bodies As at 31 March 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

11 Abridged Annual Report P&I AG Notes including Segment Reporting Act). No convertible bonds or similar securities pursuant to 160 Para. 1 No. 5 AktG had been issued as at 31 March As at 31 March 2006, Members of the Board of Directors or of the Supervisory Board are not holding any P&I shares or stock options. Segment reporting The increase in sales compared to the same period for the previous year amounts to 4.9 million euro, representing a growth of 11.0 %. 5.8 % of Group sales were achieved with the new product human resource capacity management. The growth catalyst for the fiscal year 2005/2006 is the licensing business, with 13.3 million euro sales. This is an increase of 1.1 million euro or 9,2 % compared to the previous year. The Licensing business sector contributed 27 % of total group sales. Sales development for the P&I group continues to be characterized by maintenance income: at 19.1 million euro (comparative period in previous year: 16.7 million euro), P&I achieves 32 % of its sales from the Maintenance business sector and demonstrates growth as planned. The Consulting/SI business sector is the second strongest sales category. P&I achieves 32 % of its sales, 16.1 million euro, from the Consulting business sector. Approximately four fifths of sales, or 39.7 million euro were generated in the payroll accounting area. One fifth of sales were gained through HRMS products (Human Resources Management Systems) and other. One fifth of sales were gained through HRMS products (Human Resources Management Systems) and other. In the fiscal year 2005/2006 the segment result expenses are set out as follows. in 000 euro Germany Foreign Group Sales Result Employees As at 31 March 2006, P&I employed 287 staff, 245 in Germany and 42 abroad. If part-time jobs are taken proportionally into account, this represents an average FTE (employment quotient) of 255 in the reporting period, with 216 employed in Germany and 39 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 next Annual General Meeting, the Supervisory Board and Board of Directors intend to propose distribution of a dividend of 3.00 euro per share. The dividend will consist of two components: a one-off special dividend from a repayment from capital reserves of 18,780,000 euro, and approximately 50 % of the profit carried forward and P&I AG s net earnings for fiscal 2005/2006, at 4,320,000

12 Abridged Annual Report P&I AG Notes including Segment Reporting euro. With 7,700,000 shares issued entitled to a dividend for fiscal 2005/2006, the distributable sum amounts to 23.1 million euro. Miscellaneous The annual general meeting took place on 6 September All decisions were taken in line with the recommendations of the management. In particular, a share buyback scheme and several amendments to the memorandum and articles of association were approved. Moreover, tied capital has been converted to distributable capital, which, according to the proposal of the management, shall be paid as extra dividend to the shareholders. Furthermore the acts of the Supervisory Board and Board of Directors for fiscal 2004/2005 were ratified with near unanimity. Klaus C. Plönzke has been appointed to the Supervisory Board by the local court, Wiesbaden. He succeeds Michael Schuster of the Carlyle Group, who resigned from office with effect from 22 November On 29 November 2005, Klaus C. Plönzke also took over the chairmanship of the Supervisory Board, on which Michael Wand (Deputy Chairman) and Dr. Wolfgang Hanrieder of the Carlyle Group, both elected at the ordinary annual general meeting in September 2004, continue to serve. In fiscal year 2005/2005, 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. Risks There has been no significant change in the risk profile as outlined in the Annual Report of 31 March P&I AG has a company-wide risk-management system in place to monitor and control manageable risk. Outlook 2006/2007 For the coming fiscal year, 2006/2007, the P&I Group has set a target for an increase in sales of 5 %, to be achieved through organic growth. Our focus will be on boosting licence sales; our aim is a double-digit increase. Just as in the fiscal year just ended, we are targeting growth in domestic business and with our international customers alike. With our four-brand strategy - P&I LOGA, P&I HCM, P&I PLUS and P&I SMART we can offer all-in-one solutions to the different market segments for virtually all personnel administration tasks. All four brands now contain a time management component. This means that we have built up our competitive advantage not only in the technology area, but also with particular regard to comprehensive functionality. Offering the functionalities of payroll accounting, time management and HR management in one integrated solution is our USP in

13 Abridged Annual Report P&I AG Notes including Segment Reporting the line-up with the majority of other providers in the market. Yet it is not only in winning new customers that this gives us a immense advantage. Hundreds of customers introduced our software before our spectrum of functions encompassed time management. We see here great opportunities for supplementation with this module. Germany remains our principal market. But we have also managed to generate high growth rates in the international arena while most importantly achieving profitability in the individual countries. With the market position that we have now attained in Austria, Switzerland and the Netherlands, we are looking forward to continued exceptional growth. Our top priority and long-standing goal remains: to establish the EBIT margin long-term above the 15 % level. Looking to the future development of P&I Group, we have developed clear concepts of how we can react with more efficiency, flexibility and speed to the requirements of an increasingly complex market. With an outstanding product, through constant analysis of customer needs and industry-specific software solutions, clear customer orientation in the development of our software products, and in the service field, close intermeshing with the various functional areas of our Company and our dedicated employees. We are confident that we will rise to the challenges of fiscal 2006/2007. Wiesbaden, 22 June 2006 The Board of Directors Financial Calendar 10 August 2006 Publication of Quarterly Report 2006/ August 2006 Shareholders' Meeting 2006 in Wiesbaden 9 November 2006 Publication of Half-yearly Report 2006/ February 2007 Publication of 9-Monthly Report 2006/2007 P&I AG Investor Relations Kreuzberger Ring Wiesbaden Telephone (06 11) Fax (06 11) aktie@pi-ag.com Internet WKN ISIN DE