Financial Report CREALOGIX Group

Transcription

1 Financial Report 1 st half year 2006/2007 (31 December 2006) Content 2 Group Key Figures 5 Group Balance Sheet 4 Group Income Statement 5 Group Consolidated Statement of Changes in Shareholders Equity 6 Group Consolidated Cash Flow Statement 10 Condensed Notes

2 Group Key Figures Crealogix Group July-December 2006 July-December 2005 Revenue % increase Operating profit before interest, taxes, depreciation and amortisation (EBITDA) in % of revenue Operating profit (EBIT) in % of revenue Consolidated profit in % of revenue in % of shareholders equity Net cash flow from operating activities in % of revenue Net cash flow from investing activities Depreciation / Amortisation Capacity of persons employed Capacity of freelancers Capacity, incl. freelancers Revenue per person (equivalent to full-time positions) Personnel expenses per person Headcount 31 December Capacity of persons employed, December December June 2006 Total assets Total current assets Cash and cash equivalents and marketable securities of above Non current assets Liabilities Shareholders equity Equity ratio (in %) July-December 2006 July-December 2005 Share prices High Low On 31 December Market capitalization (in million) High Low Market capitalization 31 December (in million) in % of revenue in % of shareholders equity Earnings per share - basic Price-earnings ratio (P/ E) Shareholders equity per share Price-book-value

3 Investor Information Crealogix Group Profil The CREALOGIX Holding AG (the Company) and its subsidiaries (the ) one of the leading service providers in e-business and ERP (Enterprise Resource Planning) in Switzerland, Germany and Austria. The e-business and ERP segments constitute the core of business. The CREALOGIX Holding AG shares (CLXN) are listed on the SWX Swiss Exchange. Calendar 02 October 2007 Presentation of results for 2005/2006 financial year 25 October 2007 Annual General Meeting Share data Shareholder structure Bruno Richle 22.75%, Richard Dratva 22.36%, Daniel Hiltebrand 15.42%, Peter Süsstrunk 7.20% und Chase Nominees Ltd. 5.32% Trading platform = SWX Swiss Exchange sec. no = and ticker symbol Telekurs = CLXN, Reuters = CLXZn.S und Bloomberg = CLXN SW If you have any questions about Crealogix, please contact the officers responsible for investor relations: Bruno Richle Dr. Jürg Neck Chairman of the Board of Directors CFO and CEO bruno.richle@crealogix.com juerg.neck@crealogix.com T T F F

4 Chairmen s Statement Dear Shareholder The reported sales of CHF 30.4 million for the first six months of the 2006/2007 financial year. Operating profit (EBIT) came in at CHF 1.0 million. Sales and earnings: In the first half of the 2006/2007 period the succeeded in raising sales to CHF 30.4 million from CHF 29.5 million for the year-back period. This corresponds to growth of 2.8 percent. EBIT was CHF 1.0 million (H1 2005/2006: CHF 2.1 million), with an EBIT margin of 3.5 percent (7.1 percent). Operating results were held back by weak margins in the ERP division, in particular. Consolidated profit came to CHF 1.1. million (H1 2005/2006: CHF 1.8 million). Compared with the prior-year period, the financial result took an additional charge of CHF 0.8 million owing to the regular adjustment of deferred purchase price obligations connected with company acquisitions. Personnel and operating costs: As at 31 December 2006, the employed a workforce of 293. The number of full-time workers was thus 7 percent higher than a year earlier. Other operating expenses came to CHF 4.3. million (H1 2005/2006: CHF 3.9 million). e-business division: The e-business division continued to post pleasing growth. Thanks partly to the recent acquisition of the C-CHANNEL AG, sales expanded by as much as 11.8 percent to CHF 17.8 million. The EBIT margin was an impressive 12 percent. e-business accounts for 58 percent of consolidated sales. New customers in the period included Bank Sarasin, LGT Bank Liechtenstein, WIR Bank, Novartis and Swissport, as well as ASA (the Swiss association of driver and vehicle licensing authorities). The division also entered into an alliance with Open Source provider JBoss. ERP division: Sales at the ERP division fell by 8.8 percent year-on-year to CHF 12.7 million. At the same time, EBIT was negative, at CHF 1.0 million. The ERP division is being impacted by insufficient productivity, foreign investment and high product development costs. This results in weak margins. Measures taken to improve the situation have been stepped up during the current financial year, leading to higher-than-budgeted costs. According to the budget, things should be back on track by mid-2007, laying the foundations for profitable growth in the financial year ahead. Despite the current improvements to software development and project processes, we continued to pursue the same high level of investment in product development and in growing markets within the EU in order to consolidate the excellent position that we have already achieved. The appeal of our products has brought in a series of new customers, including Mammut Sports Group, Freja Transport & Logistics, Raymond Weil S.A., Peyer Bern Lager and Logistik AG, Palexpo, Weckerle GmbH, Berthold Vollers GmbH, PLM Papierwerk Landshut Mittler GmbH & Co. KG, F. J. Aschwanden AG and Comptoir des Cotonniers. 4

5 Outlook: The will continue to pursue its growth strategy and remain true to its software powerhouse vision. Products in the e-business division will be strengthened still further, especially within our e- banking portfolio. Since we are well positioned in the ERP market we believe that, as soon as corrective action has been taken, we will have a basis for profitable long-term growth. The Board of Directors and Management are confident that an improvement in operating results can be achieved as early as the second half of fiscal 2006/2007. Bruno Richle Chairman of the Board of Directors and CEO 5

6 Group Balance Sheet Crealogix Group 31 December 2006 in % 30 June 2006 in % ASSETS Current assets Cash and cash equivalents Marketable securities Trade and other receivables Work in progress / Inventories Total current assets Non-current assets Property and equipment Intangible assets Financial assets Investments in associates Deferred tax assets Prepaid pension assets Total non-current assets Total ASSETS LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Trade and other payables Current income tax liabilities Total current liabilities Non-current liabilities Financial liabilities Suspended obligation of purchase price Deferred income tax liabilities Total non-current liabilities Total liabillities Shareholders equity Share capital Share premium Treasury shares Other reserves Retained earnings Total equity before minority interest Minority interest Total shareholders equity Total LIABILITIES AND SHAREHOLDERS EQUITY The condensed notes on pages 10 to 18 are an integral part of this financial report for the first half of the year. 6

7 Group Income Statement Crealogix Group July-December July-December 2006 in % 2005 in % Revenue Goods and services purchased Personnel expenses Depreciation Amortisation Advertising expenses Rent, maintenance and replacements General and administration expenses Operating profit Financial income Financial expense Earnings from associated undertaking Profit before tax Income tax expense Consolidated profit Attributable to: Share holders CREALOGIX Holding AG Minority shareholdings Earnings per share attributable to equity holders Earnings per share - basic Earnings per share - diluted The condensed notes on pages 10 to 18 are an integral part of this financial report for the first half of the year. 7

8 Group Consolidated Statement of Changes in Shareholders Equity Crealogix Group Share capital Share premium Holding Company Treasury shares Other reserves Retained earnings Minority interests Total Shareholders equity Per 1 July 2005 adjusted Addition resulting from change to scope of consolidation Translation differences Consolidated profit Share-based payments Change of treasury shares Per 31 December Per 1 July Addition resulting from change to scope of consolidation Translation differences Consolidated profit Share-based payments Change of treasury shares Per 31 December Retained Earnings Statutory reserves Free reserves Per 1 July Per 31 December The condensed notes on pages 10 to 18 are an integral part of this financial report for the first half of the year. 8

9 Group Consolidated Cash Flow Statement Crealogix Group July- December July - December Cash flow from operating activities Gross cash flow from operating activities Interest paid Tax received Tax paid Translation differences Net cash flow from operating activities Cash flow from investing activities Purchase of property and equipment Disposals of property and equipment Purchase of intangible assets Granting / repayment of loans Acquisition of subsidiaries, net of cash acquired Interest received Cash flow from investing activities Cash flow from financing activities Repayment of loans / mortgages Payment obligation of purchase price Purchase / sale of treasury shares net Cash flow from financing activities Change in cash and cash equivalents Cash and cash equivalent at beginning of period Currency impacts from cash and cash equivalents Cash and cash equivalent at end of period The condensed notes on pages 10 to 18 are an integral part of this financial report for the first half of the year. 9

10 Condensed Notes 1 Summary of significant accounting and valuation policies The unaudited consolidated interim financial statements for the first half 2006/2007 as at 31 December 2006 have been prepared in accordance with IAS 34 Interim Financial Reporting. The present consolidated financial statements have been prepared in Swiss francs (CHF). The same accounting policies have been applied as in the consolidated annual financial statements for 2005/2006. New or amended standards or interpretations have no or no material impact on the half-year report. Crealogix operates in areas which are not subject to marked seasonal fluctuations. As in the past, there were no contingent claims or liabilities during the period under review. 10

11 Condensed Notes 2 Property and equipment July December 2005 Property & equipment Fixed installations Office equipment Vehicles Real estate Total Opening net carrying amount Translation differences on opening holdings Elimination from acquisition cost of property, plant and equipmentno longer in use Additions Disposals Depreciation Elimination from accumulated depreciation of property, plant and equipment no longer in use Translation differences on acquisitions / disposals Closing net carrying amount December 2005 Acquisition cost Accumulated depreciation Net carrying amount Fire insurance value of property and equipment 31 December (of which buildings) (0.00) 11

12 Condensed Notes 2 Property and equipment July December 2006 Property & equipment Fixed installations Office equipment Vehicles Real estate Total Opening net carrying amount Translation differences on opening holdings Elimination from acquisition cost of property, plant and equipmentno longer in use Additions Disposals Depreciation Elimination from accumulated depreciation of property, plant and equipment no longer in use Translation differences on acquisitions / disposals Closing net carrying amount December 2006 Acquisition cost Accumulated depreciation Net carrying amount Fire insurance value of property and equipment 31 December (of which buildings) ( ) 12

13 Condensed Notes 3 Intangible assets Goodwill Software licences acquired Capitalised software development costs 1) Total Group Opening net carrying amount Translation differences on opening holdings Elimination from acquisition cost of intangible assets no longer in use Additions Disposals Amortisation Elimination from accumulated amortisation of intangible assets no longer in use Translation differences on acquisitions / disposals Closing net carrying amount December 2005 Acquisition cost Accumulated amortisation and impairment Net carrying amount ) Other intangible assets comprise capitalized software development costs and other costs 13

14 Condensed Notes 3 Intangible assets Goodwill Software licences acquired Capitalised software development costs 1) Total Group Opening net carrying amount Translation differences on opening holdings Elimination from acquisition cost of intangible assets no longer in use Additions Disposals Amortisation Elimination from accumulated amortisation of intangible assets no longer in use Translation differences on acquisitions / disposals Closing net carrying amount December 2006 Acquisition cost Accumulated amortisation and impairment Net carrying amount ) Other intangible assets comprise capitalized software development costs and other costs 14

15 Condensed Notes 4 Holdings in associates 31 December June 2006 At beginning of period Share in result At end of period The Group s holdings in major associates are as follows. None of these associates is listed: Name Country of domicile 31 December Circon Czech Republic June 2005 Circon Czech Republic Assets Liabilities Third-party Result Percentage sales % % 4 Segment information As at 31 December 2006, the Group was organized into two main business segments: (1) e-business (electronic business) (2) ERP (Enterprise Resource Planning) Segment results for the 1 July to 31 December 2006 period are as follows; year-back figures are given as a comparison: July December 2006 e-business ERP Other Elimination Group Segment revenue Inter-segment revenue Revenue Operating profit (EBIT) Financial income Share of profits of associates 1) Profit before tax Income tax expense Consolidated profit (of which minority interests) ) Refers to ERP segment 15

16 Condensed Notes July December 2005 e-business ERP Other Elimination Group Segment revenue Inter-segment revenue Revenue Operating profit (EBIT) Financial income Share of profits of associates 1) Profit before tax Income tax expense Consolidated profit (of which minority interests) ) Refers to ERP segment 6 Share capital July December 2005 Number of shares Ordinary Treasury shares Total shares Issued Treasury At beginning of period Purchase of treasury shares Sale of treasury shares Treasury shares used for share and option plans At end of period July December 2006 At beginning of period Purchase of treasury shares Sale of treasury shares Treasury shares used for share and option plans At end of period

17 Condensed Notes 7 Share Options On 30 November ,663 staff share options were granted at a strike price of CHF The options will expire on The granted options will be blocked for three years. Between 1 July and 31 December 2006, the Personnel expenses item included compensation expenses of CHF 305,258 relating to staff share options granted after 7 November The corresponding figure for the prior-year period (1 July 2005 to 31 December 2005) came to CHF 475,668. Changes in the number of outstanding share options and in the attendant weighted average strike price are shown in the following summary: July December 2005 Average strike price Number of options per share Outstanding at beginning of period Granted Forfeited Exercised Expired unexercised Outstanding at end of period Exercisable at end of financial year July December 2006 Outstanding at beginning of period Granted Forfeited Exercised Expired unexercised Outstanding at end of period Exercisable at end of financial year Minorities At beginning of period Acquisition of subsidiaries Share in result At end of period Legal restructuring of the CIRCON Group The remaining 38 percent ownership interest in CIRCON Development AG in Glattbrugg/Rümlang was acquired as at 1 July 2006 for CHF CIRCON Development AG was merged with CIRCON Circle Consulting AG Glattbrugg/Rümlang on 28 November 2006 with retroactive effect as at 1 July

18 Condensed Notes 9 Subsidiaries The following subsidiaries exist and are fully consolidated: Company Activity Capital Interest held CREALOGIX AG Bubikon, Switzerland Consultancy and services in information technology and data comminication Proportion of voting rights CHF % 100 % CREALOGIX Corp. Toronto, Canada CREALOGIX AG Frankfurt, Germany CREALOGIX E-Banking Solutions AG Zurich, Switzerland Consultancy and services in information technology and data comminication Consultancy and services in information technology and data comminication Consultancy and services in information technology and data comminication CAD % 100 % EUR % 100 % CHF % 100 % CIRCON Holding AG Baar, Switzerland Management of investments CHF % 70 % CIRCON Circle Consulting AG Glattbrugg, Switzerland CIRCON Circle Consulting AG Villingen, Germany CIRCON Circle Consulting AG Thalheim, Austria CIRCON Circle Consulting GmbH Dornbirn, Austria Balzano Informatik AG Zurich, Switzerland C-CHANNEL AG Hünenberg, Switzerland Development of/trading in software Development of/trading in software Development of/trading in software Development of/trading in software Services in information technology and trading in hardware and software Services in information technology, development of software, trading in hardware and software CHF % 70 % EUR % 42 % EUR % 56 % EUR % 70 % CHF % 80 % CHF % 100 % 10 Events after the balance sheet date No events occurred after the balance sheet date of 31 December

19 Addresses and Locations CREALOGIX Holding AG Hohlstrasse 535 CH-8048 Zurich T F CIRCON Holding AG Oberneuhofstrasse 6 CH-6340 Baar T F CIRCON Circle Consulting Schloss Eicherhof D Leichlingen T F CIRCON Circle Consulting Eckertstrasse 7 A-8020 Graz T F CREALOGIX AG Rosengartenstrasse 6 CH-8608 Bubikon/ZH T F CREALOGIX Oberneuhofstrasse 6 CH-6340 Baar T F CREALOGIX Mühlemattstrasse 53 CH-3007 Berne T CREALOGIX E-Banking Solutions AG Hohlstrasse 535 CH-8048 Zurich T F CIRCON Circle Consulting AG Industriestrasse 54 CH-8152 Glattbrugg/ZH T F CIRCON Development AG Industriestrasse 54 CH-8152 Glattbrugg/ZH T F CIRCON Circle Consulting Werkstrasse 37 CH-3250 Lyss T F CIRCON Circle Consulting Podbielskistrasse 166A D Hanover T F CIRCON Circle Consulting AG Pontalierstrasse 9 D VS-Villingen T F CIRCON Circle Consulting AG Reinberghof 2 A-4600 Thalheim T F Hannover CIRCON Circle Consulting GmbH Färbergasse 13 A-6850 Dornbirn T F CIRCON Circle Consulting s.r.o. Sokolovská 201/270 CZ Prague 9 T F Balzano Informatik AG Clausiusstrasse 70 CH-8006 Zurich T F C-CHANNEL AG Bösch 83B CH-6331 Hünenberg T F Leichlingen Prague CREALOGIX CREALOGIX E-Banking CIRCON Balzano C-CHANNEL Villingen Thalheim Bern Zurich Lyss Baar Hünenberg Dornbirn Graz 19