KONZERNBILANZ

Transcription

1 KONZERNBILANZ 9-MONTHLY REPORT 1. APRIL DECEMBER 2005

2 KONZERNBILANZ Dear Shareholders, Dear Sir or Madam, tant for us is the knowledge we gain in respect of future developments. For the future, we will be striving for even stronger product differentiation in comparison with those of our competitors. Our product portfolio is comprehensive and extremely attractive as it stands. With our chief module Payroll, adapted for many European countries, an integrated solution comprising human capital management and time management products, our product range possesses significant unique selling points in the German market. The foundations have thus been laid for a steady increase in our market share and the resulting growth. Our purpose now is to work on building our advantage. In fiscal 2004/2005, we concentrated on changes in direction for P&I AG, with the consequent restructuring and the acquisition of ZHS, the time management company. In this current fiscal year, 2005/2006, our focus has shifted to the integration of time management, improvement of our operative performance, and the positive development of our financial figures. The new organisation which arose out of the restructuring has led not only to strengthened relations with clients, but also to major synergy effects in our advances in software development. Close cooperation among software development, systems integration and consulting sections is invaluable in defining the products we present to the market. From the numerous projects we operate with clients of all sizes and across all industries, we gather experience which has enabled us to better recognise current needs. However, even more impor- With our product palette continuing to expand, we provide support for the various industries at different stages along the value added chain. Accordingly, we can react swiftly to changes in the market. If, for example, demand is stagnating in the payroll area, we can aid the optimisation of personnel resources management in the service provider industry and exert a positive influence on the success of the companies. This example also points up the fact that our products are supporting more and more of our customers processes. Allow me to elucidate a little by giving you a few more details. Let s look first of all, at the incorporation of time management as a result of our take-over of the time management company ZHS. The task of integration applied to employees as well as to the product, AZEA. Both aspects of the integration process have since been completed. The integration of the employees into P&I AG proceeded with no hiccups at all - for one, as the ZHS employees were located in the very same office building in Wiesbaden. On the other hand, integrating

3 KONZERNBILANZ the AZEA software into our P&I LOGA software required considerably more effort. The time management solution had to be incorporated into the P&I LOGA user interface, both data models had to be merged and comparable functionalities standardised. Nevertheless, we succeeded in completing this work by December 2005 as well, so equipping our customers with an integrated all-in-one solution. Our operating performance has improved significantly. Our sales and marketing organisation was given a new orientation directed at raising the volume of licensing sales. This approach has allowed us to push software licensing sales to 9.8 million euros, an increase of 17.8 % compared with the same period in the previous year. Rises in licensing sales engender, after a certain interval, corresponding increases in maintenance income. The latter accordingly rose by 14.9 % to 14 million euros. Looking to the future development of P&I AG, the past few months have seen us developing ever-clearer concepts of how to react with more efficiency, flexibility and speed to the requirements of an increasingly complex market. And we are pursuing with determination our goal of building the attractiveness of P&I AG as an investment. The high performance sales and earnings figures for the first nine months of our fiscal year make us confident of reaching our ambitious targets for the whole year. They also back up our expectation that long term, we will sustain our course of organic growth based on profitable expansion. Our highly-motivated employees, to whom we owe this success, are full of the energy needed to carry P&I AG further along this route. My special thanks, therefore, go to our employees, whose commitment and work have made the positive development of P&I possible. With turnover of 14 million euros, compared to 13.1 million euros in the third quarter of the previous fiscal year, the third quarter of this fiscal year was the most successful year in the history of P&I. Sales of 36.2 million euros in the first nine months of the fiscal year have lifted us to just over our target, and 10.9 % over the previous year s figure of 32.7 million euros. This successful growth in sales is linked to an even more marked increase in EBIT, from 4 million euros to 7.1 million euros. Yours faithfully, Vasilios Triadis P&I Personal & Informatik AG CEO / Chairman of the Board On 29 November 2005, our Supervisory Board gained a new member and chairman in Klaus C. Ploenzke, a respected figure in the IT world. P&I AG will benefit greatly from his network of contacts and many years of experience.

4 BALANCE SHEET Consolidated Balance Sheet 9-Monthly financial Annual financial expressed in 1000 euro, statement I statement I commercially rounded not verified verified Assets Short term assets Cash and cash equivalents 26,764 33,788 Trade receivables 9,352 8,320 Inventories Prepaid expenses and other short assets ,083 42,791 Long term assets Tangible assets Customer base 10,866 12,017 Intangible assets 1, Financial assets Deferred taxes ,477 13,515 Total assets 50,560 56,306

5 BALANCE SHEET Consolidated Balance Sheet 9-Monthly financial Annual financial expressed in 1000 euro, statement I statement I commercially rounded not verified verified Equity and Liabilities Short term liabilities Other short term liabilities 5, Trade payables 1,345 1,178 Payments received/prap Deferred sales ,081 Obligations from taxes on income 2,621 1,186 Total short term liabilities 10,200 21,122 Long term liabilities Long term finance lease obligations Deferred taxes 1,376 1,034 Accruals from pensions 2,488 2,492 Total long term liabilities 3,941 3,650 Shareholders' equity Subscribed capital 7,700 7,700 Capital reserve 18,351 18,351 Revenue reserve Balance sheet profit/loss 10,616 5,640 Other equity Total shareholders' equity 36,419 31,534 Total equity and liabilities 50,560 56,306

6 STATEMENT OF INCOME Consolidated Statement of Income expressed in 1000 euro, commercially rounded Sales Cost of sales MORE PERFORMANCE Gross profit from sales Research and development expenses Sales and distribution expenses Administrative expenses Write down of goodwll Other operating income Other operating expenses Result of ordinary activities (EBIT) Other income from investments Other financing expenses Currency translation gains Currency translation losses Result of ordinary activities before tax Taxes on income Net profit for the year DVFA/SG) Earnings per share in euro (undiluted/diluted) Distributed dividend Average number of shares issued (undiluted/dilu

7 STATEMENT OF INCOME Quarterly financial Quarterly financial 9-Monthly financial 9-Monthly financial statement statement statement statement not verified not verified not verified not verified 14,001 13,132 36,255 32,680 4,348 4,619 10,963 10,824 9,653 8,513 25,292 21,856 2,481 2,223 7,147 6,768 2,443 2,053 6,209 6, ,052 2,760 2, ,702 1, ,292 2,565 7,119 4, ,503 2,723 7,729 4, ,418 2,753 1,979 2,545 1,305 4,976 2, ted) 7,700,000 7,700,000 7,700,000 7,700,000

8 CASH FLOW STATEMENT Consolidated Cash Flow Statement 9-Monthly financial 9-Monthly financial expressed in 1000 euro, statement statement commercially rounded, not verified Consolidatd result before taxes on income an interest 7,119 4,017 Depreciation on fixed assets 2,452 2,486 Addition to accruals for pensions Depreciation/appreciation on short term investments Changes in inventories, trade receivables and other assets ,135 Changes in liabilities and other equity and liabilities - 12,988-9,583 Changes in other items not affecting payments Funds received from operating activities ,548 Net funds from operating activities - 5, investing activities -1, financing activities Decrease/increase in liquid resources - 7, Liquid resources at the beginning of the reporting period 33,788 19,618 Liquid resources at the beginning of the reporting period 26,764 19,211 Breakdown of funds at the end of the fiscal year Cash on hand and in bank balances 12,516 7,660 Available-for-sale securities of the current assets 14,248 11,551 Liquidity 26,764 19,211 CHANGE IN SHAREHOLDERS' EQUITY Change in Shareholders' Equity 9-Monthly financial 9-Monthly financial Annual financial expressed in 1000 euro, statement statement statement commercially rounded Shareholders' equity at the beginning of the fiscal year 31,534 28,221 28,221 Subscribed capital Capital reserve Revenue reserve Other shareholder's equity Balance sheet result 4,976 2,320 3,381 Shareholders' equity at the end of the period 36,418 30,483 31,534

9 NOTES INCLUDING SEGMENT REPORTING ORDERS Orders on hand for the next twelve months, amount to 32.0 million euros as at 31 December, Of these, 19.3 million euros attributable to maintenance business. COST DEVELOPMENT Operating costs for the first nine months of the current fiscal year 2005/2006 amount to 27.5 million euros compared to 27.1 million euros in the same period for the previous year. This means that costs in the P&I Group increased by 1.7%, which however is set against a 10.9 % increase in sales. RESEARCH & DEVELOPMENT In Research and Development, 7.1 million euros have been invested for product improvement, updates for changes in legislation and collective bargaining arrangements 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 722,000 euro have been made. ACQUISITIONS P&I Personal & Informatik AG acquired the ZHS group with headquarters in Wiesbaden from 1st 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 created by a change of group on March 10, 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 1,054 Purchase price 1,705 Cash inventory on take-over -502 Outflow of funds for purchase of company 1,203 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 (flexi-time) 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

10 NOTES INCLUDING SEGMENT REPORTING portfolio as the third pillar of human resource core processes. Here, P&I is drawing on the consequences of the current trend within companies and administration, that the different areas of human resource management are becoming more closely intertwined. Users are increasingly looking for integrated solutions representing the continuous operative processes within human resource management without interruption. SHAREHOLDINGS BY THE COMPANY AND EXECUTIVE BODIES As at 31 December 2005, 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 31 December As at 31 December, 2005, 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 3.6 million euros, representing a growth of 10.9 %. 5.2 % of Group sales were achieved with the new product human resource capacity management. Non-acquisition related sales have increased by 5.2 %. The growth catalyst for the first nine months is the licensing business, with 9.8 million euro sales. This is an increase of 1.5 million euro or 17,8 % compared to the previous year. The Licensing business sector contributed 27 % of total group sales. Sales development for the PI group continues to be characterized by maintenance income: at 14.0 million euro (comparative period in previous year: 12.2 million), P&I achieves 39 % 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 31 % of its sales, 11.4 million euro, from the Consulting business sector. Approximately four fifths of sales, or 28.3 million euros 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. The first nine months of 2005/2006 are set out as follows EURO GERMANY FOREIGN GROUP Sales 30,135 6,120 36,255 Result 5,958 1,161 7,119 EMPLOYEES As at 31 December 2005, P&I employed 283 staff, 244 in Germany and 39 abroad. If part-time jobs are taken proportionally into account, this represents an average FTE (employment quotient) of 253 in the reporting period, with 214 employed in Germany and 39 abroad. MISCELLANEOUS The annual general meeting for this year took place on September 6, 2005 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. The focus of the changes lay on the conversion from tied to distributable capital. 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.

11 NOTES INCLUDING SEGMENT REPORTING SELECTED FACTS AND FIGURES The Group annual financial statements for P&I Personal & Informatik 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 were the same as those applied in the preparation of the Annual Report of March 31, The interim report complies with the requirements of IAS 34, 19. With a good third quarter in fiscal 2005/2006, P&I has achieved the earnings targeted for the year after only nine months. We believe that we can increase the company s earnings still further. P&I enters the last quarter in a strong position due to its solid base of orders on hand, its motivated team and the revitalised economy. Wiesbaden, February 9, 2006 The Board of Directors RISKS There has been no significant change in the risk profile as outlined in the Annual Report of March 31, P&I Personal & Informatik AG has a company-wide risk-management system in place to monitor and control manageable risk. OUTLOOK For fiscal 2005/2006, the P&I group expects revenues to achieve the target of over 49 million euros. The focus still lies on increasing licensing sales, aiming at a double digit rise. Earnings could increase, though this is as yet not assured. At the least, P&I s Board of Directors expects to be able to hold earnings at the present level. Since September 2005, P&I has been on the scene as "Your partner for integrated HR solutions", with a new look and a new brand concept. Aside from modernisation, the keyword is transparency, presenting a clearly-defined structure for our extensive product palette, aligned to the HR transactions of our users. P&I is oriented to producing comprehensive, integrated software solutions which support businesses and public administrative bodies efficiently and effectively in all their HR management processes. P&I invests in the further development of its existing products. The newly redesigned client interface for P&I LOGA now sports a Windows 2003 look and 'feel', plus providing considerably enhanced user comfort through improved navigation. Intelligent reporting tools will support P&I LOGA users in future when ascertaining key HR data (already mentioned in the second half of the fiscal year)

12 KEY FIGURES Key figures acc. to IAS Changes Changes not verified not verified 1000 EURO 1000 EURO 1000 EURO % Group sales 36,255 32,680 3, % Result before depreciation (EBITDA) 9,571 6,502 3, % Result before interest and taxes (EBIT) 7,119 4,017 3, % Consolidated result (DVFA/SG) 4,976 2,320 2, % Number of employees (average) % Earning per share (DVFA/SG) % P&I AG HIGHLIGHTS PROFITS RISE WITH GROWTH IN LICENSING AND MAINTENANCE SALES IN FIRST NINE MONTHS OF FISCAL 2005/2006 Growth in sales of 10.9 % for P&I boosts earnings before interest and taxes from 4.0 million euros to 7.1 million euros in comparison with the same period in the preceding year. KLAUS C. PLÖNZKE NEW P&I SUPERVISORY BOARD MEMBER In Klaus C. Plönzke, P&I gains one of the most prominent personalities in the business world, and one who has played a major role in the establishment of the IT industry in Germany. P&I AG WINS MAJOR CLIENT IN SWITZERLAND Clothing retailers, the Charles Voegele Group (Pfäffikon SZ, Switzerland ), are to use P&I AG software, P&I LOGA software for HR management and payroll accounting and P&I HCM, (human capital management software), for their near 7,200 employees. Bringing in these software systems will allow country operations for the whole Charles Voegele Group to use the same system. P&I AG FINANCAL CALENDAR 22 June 2006 Publication of the Annual Financial Statement for 2005 / August 2006 Publication of the Quarterly Report FY 2006 / August 2006 Shareholders Meeting for 2006 in Wiesbaden 9 November 2006 Publication of the Half-yearly Report 2006 / 2007 CONTACT P&I Personal & Informatik AG Investor Relations Kreuzberger Ring 56 I D65205 Wiesbaden Telephone:(06 11) I Telefax: (06 11) aktie@pi-ag.com I Internet: WKN: I ISIN: DE