Interim Report as of 30 June 2003

Transcription

1 Operating Profits delivered by Core Units IT-Consulting and IT-Training Comprehensive Partnership with IBM IT Education Services Order Books Fill for TRIA.NET Services Interim Report as of 30 June 2003 Working hard for your success. IT-Consulting/IT-Projekte IT-Training

2 Six Monthly Report January-June Key Figures for TRIA IT-solutions AG in accordance with IAS - Group In m EUR Q1/2003 Q1/2002 Sales Consolidated result * Staff** * according to DVFA/SG, before taxes and amortization of goodwill from consolidation ** including management and other staff (freelance staff and subcontractors' employees) Financial Calendar Nine-Monthly Report 14 November 2003

3 Six-Monthly Report January-June 2003 Dear Shareholders, Despite the continued depression in the economy and reserved behaviour on the part of IT investors, TRIA has repeated its achievements of the first fiscal quarter in the first half of 2003, with a positive result (before tax and amortization of goodwill from consolidation) of 0.1 m (first half year 2002: 0.1 m ). Both TRIA's consulting and training segments showed operating profits, and the company additionally achieved positive operating and total cash flow for the second quarter. These results confirm the consistent step-by-step implementation of TRIA's strategic "profits before sales" orientation for the current fiscal year that was detailed at the Annual General Meeting of 16 June In the first six months of 2003, TRIA achieved sales of 10.7 m (previous year 15.4 m), attributing this result to both the current economic crisis and the large number of public holidays during this period, which caused an early start to the holiday season. Because of the structuring measures introduced last year, however, no direct comparisons of this year's and last year's sales are possible (see Press Releases dated 30 August /29 November 02/28 March 03). The highlight of the last quarter's business was the June unveiling of a comprehensive training partnership with IBM. In this partnership, TRIA will add IBM's range of training courses for Lotus, Cisco and Citrix to its product portfolio, while IBM Education Services will expand the scope of its services to include Microsoft developer training for.net technologies and TRIA's entire Novell services. IBM and TRIA anticipate that the joint project will increase market share, enhance benefits for clients in the IT training sector, and optimize course capacity. The first bookings were registered as early as July, and the full impact of the partnership is expected to emerge in the fourth quarter. The partnership with T-Mobile continues to bear fruit; in a pilot project, TRIA ITconsulting developed a mobile system for measuring output and working hours based on the T-Mobile Service Integration Platform and applying Web services technology. At this year's Annual General Meeting, all items on the agenda were accepted with a vote of % or above. At this point I would like once again to express my thanks to all shareholders for the continued confidence they have shown. Richard Hofbauer CEO

4 TRIA Group Second-quarter highlights for the core sectors of IT services include: Strategic Cooperation with IBM IT Education Services At the end of the second quarter, TRIA IT-training clinched a strategic partnership with IBM IT Education Services. IBM and TRIA anticipate increased market share, enhanced benefits for IT training customers and improved course capacity from the project. Group E-Learning Sales Rise Investments made last year in the field of e-learning / blended learning are delivering initial returns. TRIA was commissioned by a major IT company to perform a comprehensive redesign of the company's training activities, including streamlining and expanding e-learning courses. In addition, a number of follow-up orders were generated with an international reinsurance company. TRIA Web Services Project as Microsoft Reference Project in Berlecon Study TRIA's pilot project for mobile recording of working hours, based on T-Mobile's SIP platform and applying Web services technology, was selected by Microsoft as a reference project for the current Berlecon Study. Next Phase of TRIA.NET Services Expansion of.net portfolio to include TRIA.NET infrastructure services TRIA Group Human Resources Development In the first six months of 2003, TRIA employed 233 staff * (same period : 329*). Human resource expenditure dropped for the period under review by 25%, from 7.5 m in the first six months of 2002 to 5.6 m in the same period in TRIA IT-consulting Focus on New Technologies Secures Operating Profitability The IT consulting segment has succeeded in maintaining its operating profitability despite the economy's continuing weakness, achieving a result of almost 1.0 m (before tax, goodwill amortization and consolidated allocation) in the first six months of 2003 and equalling the same period in Sales for the first half of 2003 totalled 6.9 m as against 10.3 m for the same period 2002; however, owing to structuring measures these figures are not directly comparable. TRIA.NET Development Services for the public sector, launched last year, has sustained its positive development; applications based on.net development technologies were produced for a variety of official institutions, and included an * including management and other staff (freelance staff and subcontractors' employees)

5 Intranet-based accounts management system and an array of reporting tools for cost analysis..net Infrastructure Services projects included a draft concept for the introduction of Windows 2000 and Windows 2003 in the European offices of an automotive supplier, and the design and implementation of a new system configuration for a service provider in the consumer goods industry, a follow-up project to a draft concept assessing various alternatives for IT infrastructure consolidation and migration from Windows NT to Windows The.NET Portal Services sector developed particularly favourably in Q2, with successful projects including the design and implementation of a website relaunch based on the Microsoft Content Management Server, and implementation of an Internet / Extranet portal for clients of health insurance company Gemeinschaft Servicezentrum Krankenversicherung (GSKV) based on the Microsoft Sharepoint Portal Server. TRIA IT-training Trend Towards Short-Term Booking In the second quarter of 2003, the market for IT training courses continued to be affected by companies' budget cuts and cautious investment behaviour. The trend towards short-notice ordering and course booking by customers continues. Sales for TRIA's training centers fell slightly below the level of the first quarter, a result additionally impacted by an accumulation of public holidays which shifted the holiday period forward. TRIA IT-training GmbH registered sales of 3.8 m for the first six months of 2003, as against 5.0 m for the same period in Due to the already mentioned structuring measure, these figures are applicable only to limited extend. However, operating results continued to develop positively, confirming the effectiveness of restructuring and cost reduction measures. TRIA IT-training achieved results of 0.2 m (before tax, amortization of goodwill and consolidated allocation) in the first half of 2003 ( 0.2 m in the first half of 2002) The addition of several new customers largely compensated for the reserve shown by some regular key accounts. IT training projects included comprehensive migration and user training courses for WWK Insurance, Xella (formerly Ytong) and Frankfurt Public Transport Association. Future Prospects Achieving sustained success in the tough, highly fragmented market of IT training depends on market presence and critical mass. TRIA's cooperation with IBM IT Education Services, for example, will generate mutual benefits for both parties by expanding their presence, increasing the range of services they offer and enhancing performance in major projects. In this context, incoming orders for the fourth quarter are already at a healthy level. In the IT sector, studies by IDC and BITKOM predict a slightly improvement in market conditions for the end of the year, so that, assuming this market situation, TRIA ITconsulting expects sales to stabilize. TRIA plans to continue expanding its.net portfolio, enabling TRIA.NET Services to cover all aspects of company-wide business. Despite the seasonal factors expected to affect third quarter results, TRIA anticipates that the Consulting and Training sectors will deliver positive operating results for the year.

6 Financial Statements according to current stock exchange regulation (Deutsche Börse AG)

7 Consolidated Balance Sheet of TRIA IT-solutions AG according to IAS of June 30, 2003 Six monthly Annual report Assets report EUR 30/06/ /12/2002 Current assets Cash and cash equivalents 884,054 1,064,875 Trade accounts receivable 2,650,971 2,389,856 Accounts receivable due from related parties 114,905 17,777 Inventories 47,874 15,585 Prepaid expenses and other current assets 227, ,633 Total current assets 3,925,560 3,836,726 Non current assets Property, plant and equipment Leasehold improvements 32,875 43,897 Office furniture and fittings 454, ,934 Advance Payments 25,306 25,306 Intangible assets Intangible assets (franchise, copyrights, licenses, etc) 100, ,384 Software 71,168 94,305 Goodwill 9,834,441 10,147,410 Investments Total non current assets 10,518,908 10,981,259 Total assets 14,444,468 14,817,985 Liabilities and shareholders' equity Current liabilities Six monthly Annual report report EUR 30/06/ /12/2002 Short-term debt and current portion of long-term debt 1,572,603 1,508,795 Trade accounts payable 2,461,519 2,343,956 Accounts payable due to related parties 7,640 33,364 Advance payments received 364, ,958 Accrued expenses 1,464,620 2,621,103 Deferred tax liability 141, ,206 Other current liabilities 1,131,789 1,355,590 Deferred income 6,750 10,102 Total current liabilities 7,150,937 8,275,074 Non-current liabilities Long -term debt, less current portion 1,000,000 0 Total non-current liabilities 1,000,000 0 Minority interest 0 0 Shareholders' equity Share capital 13,095,000 13,095,000 Additional paid-in capital 17,580,727 17,580,727 Revenue reserves 39,719 39,719 Treasury stock -537, ,745 Accumulated deficit -23,884,170-23,634,791 Total shareholders' equity 6,293,531 6,542,911 Total liabilities and shareholders' equity 14,444,468 14,817,985

8 Consolidated Income Statement of TRIA IT-solutions AG Quarterly report Six monthly Quarterly report Six monthly according to IAS for January - June 2003 II/2003 report II/2002 report EUR Revenues 5,079,726 10,693,247 7,941,885 15,363,316 Changes in inventories of finished goods and work in progress Other operating income 702,025 1,163, ,499 1,680,906 Cost of purchased materials and services 124, , , ,854 Personnel expenses 2,782,373 5,596,174 3,781,887 7,522,645 Depreciation and amortization 96, , , ,141 Amortization of goodwill 156, , , ,861 Other operating expenses 2,736,985 5,573,876 4,354,663 8,666,989 Operating income / loss -115, , , ,267 Interest income and expenses -34,725-42,814-23,176-28,738 Result before income taxes (and minority interest) -149, , , ,006 Income tax Result before minority interest -149, , , ,006 Minority interest Net income / loss -149, , , ,006 Net income per share (basic) Net income per share (diluted) Weighted average shares outstanding (basic) 13,095,000 13,095,000 13,095,000 13,095,000 Weighted average shares outstanding (diluted) 13,483,800 13,483,800 13,483,800 13,483,800 Income tax Amortization of goodwill 156, , , ,861 Consolidated results according to DVFA/SG before tax and amortization of goodwill from consolidation 6,738 63,589 3,567 65,855

9 Consolidatet Cash Flow Statement of TRIA IT-solutions AG Six monthly Six monthly according to IAS for January - June 2003 report report EUR Cash flows from operating activities: Consolidated results according to DVFA/SG before tax and amortization of goodwill from consolidation 63,589 65,855 Adjustments for: Depreciation and amortization 195, ,141 Changes on assets and liabilities Decrease in accruals -1,156,483-2,048,136 Decrease/Increase in trade receivables and other assets -269, ,259 Decrease/Increase in trade payables and other liabilities -31,463-1,122,544 Cash flows from operating activities: -1,198,580-2,397,424 Cash flows from investing activities Proceeds from sale of equipment 3,024 22,577 Purchase of property, plant and equipment / intagible assets -49, ,965 Cash flows from investing activities -46, ,388 Cash flow from financing activities Proceeds from short or long-term borrowing 1,000,000 0 Cash flow from financing activities 1,000,000 0 Changes to cash affecting payments -244,630-2,541,812 Cash and cash equivalents at beginning of period -443,920 1,992,194 Cash and cash equivalents at end of period -688, ,618

10 Equity Statement Fiscal Year 2003 Gezeichnetes Gesetzliche Anderer Kapital Kapitalrücklage Rücklage Gewinnrücklagen Eigene Anteile Bilanzverlust Gesamt EUR EUR EUR EUR EUR EUR EUR as of Jan. 1, ,095, ,580, , , ,634, ,542, Proceeds from issuance of share capital Treasury stock Net profit/loss , , as of June 30, ,095, ,580, , , ,884, ,293, Equity Statement Fiscal Year 2002 Gezeichnetes Gesetzliche Anderer Kapital Kapitalrücklage Rücklage Gewinnrücklagen Eigene Anteile Bilanzverlust Gesamt EUR EUR EUR EUR EUR EUR EUR as of Jan. 1, ,095, ,580, , , ,195, ,982, Proceeds from issuance of share capital Treasury stock Net profit/loss , , as of June 30, ,095, ,580, , , ,499, ,678,088.90

11 Segment Reporting January - June 2003 IT-consulting IT-Training Holding Consolidated Statement Sales to external customers 6,898,162 3,791,124 3,960 10,693,247 Results from ordinary activities before goodwill amortization, management fees and interests to affiliated companies 955, ,055-1,108,446 63,589 The assessment and accounting methods selected and shown in the Annual Report dated 31 December, 2002 were retained in this Quarterly Report.