Quarterly Report 3/2006

Transcription

1 Quarterly Report 3/2006

2 Group Key Figures Konzernschlüsselzahlen (IFRS) 9 Months Months Months Months Profit and Loss Account Gewinn-und-Verlust-Rechnung Sales to third parties (consolidated) Umsatzerlöse (konsolidiert) EBITA Operatives Ergebnis vor Abschreibungen auf immaterielle Vermögenswerte EBIT Operatives Ergebnis Earnings after tax Ergebnis nach Steuern (1 273) Earnings per share in EUR Ergebnis pro Aktie in EUR ( 0,24) 0,14 0,01 0,08 Cash Flow Statement Mittelflussrechnung Cash flow from operating activities Mittelfluss aus operativer Geschäftstätigkeit Cash flow from investing activities Mittelfluss aus Investitionstätigkeit (15 793) (3 217) Cash flow from financing activities Mittelfluss aus Finanzierungstätigkeit (1 215) Cash and cash equivalents at the end of the period Zahlungsmittel und -äquivalente am Ende der Berichtsperiode Balance Sheet Bilanz Balance sheet total (at period end / at ) Bilanzsumme (zum Periodenende / zum ) Equity (at period end / at ) Eigenkapital (zum Periodenende / zum ) Equity ratio % (at period end / at ) Eigenkapitalquote % (zum Periodenende / zum ) 40% 63% Average number of employees Mitarbeiter im Durchschnitt Employees at period end Mitarbeiter zum Periodenende

3 AC-Service with Major Increase in Sales and EBITA in Third Quarter Full-Year Sales and Earnings Forecasts Confirmed AC-Service continues its growth strategy as a one-stop service provider that covers the entire IT value chain and delivers a full range of service to midmarket companies in countries where German is spoken. Playing a key role in this is All for One Midmarket Solutions, which has belonged to AC-Service since February 2006 and, thanks to its determined marketing efforts, has already this year won over 20 important new-client SAP projects among small to mid-sized machine-making companies and auto-parts suppliers. In the process, some one in three new clients also choose to benefit from the Managed IT Services offered by AC-Service. What s more, this steadily growing share of recurring earnings potential is also attributable to proceeds from the sale of SAP software licenses, which are not only well above expectations, but also go hand in hand with routine future maintenance income. Earnings performance (EBITA) lagged behind the strong rise in revenues in the first two quarters of However, during the period of July to September 2006, the substantial increase in sales (+63%), though unchanged from the corresponding prioryear quarter, did for the first time lead to an equivalent surge in the EBITA (+59%). And so compared to a year ago, this allowed the company to post big gains in both sales (+54%) and in EBITA (+28%) for the nine-month period as well. Following a strong third quarter and additional, promising client projects, our commitment to reaching our sales and earnings projections for the full 2006 year remains unchanged. Depending on how the fourth quarter goes, we expect to be able to achieve annual sales within a range of EUR 67 to 70 million and earnings (EBITA) in the area of about EUR 2.4 to 2.9 million. Although some 25 new appointments were made since the start of the year in All for One Midmarket Solutions alone, the recruitment of qualified human resources remains a vital challenge. Growth Strategy AC-Service finished the third quarter of 2006 with sales of EUR 18.0 million (prior year: EUR 11.1 million), which is an increase of 63%. The EBITA for the period July to September 2006 was EUR 1.1 million compared to EUR 0.7 million in the previous year. Together with the results from the first halfyear, this nine-month period generated sales of EUR 51.3 million (prior year: EUR 33.3 million) and an EBITA of EUR 1.8 million (EUR 1.4 million). These figures include one-time expenses in the amount of some EUR 0.2 million incurred in the first quarter of 2006 in connection with the provision of the loan for the acquisition of All for One Midmarket Solutions. The nine-month earnings after taxes of minus EUR 1.3 million (prior year: EUR 0.6 million) were negative as expected, due primarily to the high income-tax expense, which for the most part has no impact on liquidity (deferred taxes). Also included in the earnings after taxes are one-time expenses totalling EUR 0.6 million for the acquisition financing. The nine-month earnings per share (IFRS) were minus 24 euro cents (prior year: 14 euro cents). All business divisions contributed to this overall performance with positive earnings. Managed IT Services The Managed IT Services business division finished the third quarter with segment sales of EUR 4.5 million (prior year: EUR 4.1 million) and an EBITA (before allocation of corporate costs) at the prior-year level of EUR 0.2 million. Taken together with the results of the first half-year, the division posted nine-month sales of EUR 13.4 million (prior year: EUR 12.6 million) and an EBITA of EUR 0.5 million (prior year: EUR 0.0 million). Sales and earnings exceeded our expectations. As in the previous year, the division had an average staffing strength of 95 full-time equivalents. The sales relationship and collaboration with All for One Midmarket Solutions was further intensified in the third quarter. Once again, their mutually coordinated and refined portfolio of products and services, extending from licenses, through market-leading SAP industry solutions and consulting services, all the way to running the solutions in the Managed IT Service Center, has led to an increase in promising projects. In light of the improved economic situation, a number of client companies are further expanding their business operations, a situation that has provided additional favourable impetus. SAP Solutions With All for One Midmarket Solutions, which arose from a merger of All for One Systemhaus GmbH Midmarket Solutions and AC Solutions GmbH, this division has since become AC- Service s biggest business division. In this third quarter, the SAP Solutions division posted a major jump in sales to EUR 9.8 million from the EUR 3.1 million of the same period a year ago. The segment s EBITA (before allocation of corporate costs) of EUR 0.3 million for the months of July to September 2006 was an improvement over the corresponding prior-year figure of minus EUR 0.1 million. For the nine-month period this resulted in segment sales of EUR 27.1 million (prior year: EUR 8.8 million) and an EBITA of EUR 0.5 million (prior year: EUR 0.2 million). The average number of full-time equivalents in the SAP Solutions business division was 210 (prior year: 83 FTEs). 3

4 It was with a determined marketing effort that All for One Midmarket Solutions was able to already garner over 20 important new SAP client projects among small to mid-sized machine-making and automotive-parts suppliers this year, which led to an order-entry of EUR 20.9 million (prior year: EUR 11.7 million). About every fourth new customer belongs to the high-end midmarket segment that SAP itself had been addressing and which was first opened to leading systems houses in line with a newly aligned support concept. The respective partner agreements were signed with SAP at the end of September Implementation projects within the highend midmarket segment mostly entail the sale of licenses for several hundred users along with rollout services often ranging in scope from 700 to over 1,000 man days. Overall there was a big increase in the number of inquiries, projects and business contracts posted in the third quarter. The fact that the SAP Solutions division remained considerably below our earnings expectations after nine months is due primarily to growthrelated factors. Because of the tight job market, staffing growth was unable to keep pace with the unexpectedly strong increase in business with new and existing customers. Revenues generated from the sale of SAP licenses were significantly above our expectations, which in turn have already led to higher-than-budgeted recurring proceeds from software maintenance agreements. The full extent of this favourable earnings impact from these recurring softwaremaintenance revenues will start to unfold in the course of next year. Human Resource Services This business division posted an EBITA (before allocation of corporate costs) of EUR 0.6 million on segment sales after nine months of EUR 7.7 million (prior year: EUR 8.6 million). The prior-year earnings of EUR 1.1 million include reversals of provisions that were not needed in the amount of EUR 0.4 million. The average staffing strength of the Human Resource Services division in full-time equivalents during the ninemonth period was 90 (prior year: 103 FTEs). The third quarter finished with segment sales of EUR 2.3 million (prior year: EUR 2.6 million) and an EBITA (before allocation of corporate costs) of EUR 0.1 million (prior year: EUR 0.3 million). Despite what was mostly a pricing-related drop in sales, the division was still able to post an EBITA margin to sales of some 8% and thereby maintain the previous year s adjusted profitability level. Positive momentum is expected from the pending completion of certification according to the provisions of the Sarbanes- Oxley Act and from additional advances in»hr Business Process Outsourcing«. With now more than 120 clients, AC- Service has further expanded its important position within this slice of the human resource service market in Germany. Earnings Performance In addition to the earnings contributions of the Managed IT Services, SAP Solutions and Human Resource Services business divisions, the AC-Group s nine-month EBITA of just under EUR 1.8 million (prior year: EUR 1.4 million) includes earnings from»other Operations«. These involve special technology services in Belgium and Luxembourg, which generated an EBITA (before allocation of corporate costs) of EUR 1.6 million (prior year: EUR 1.3 million). The EBITA of the AC Group for the period of January to September 2006 also takes into account general corporate expenditures (»Corporate Services«segment), which increased from EUR 1.3 to 1.5 million. This increase is mostly attributable to one-time expenses in connection with the provision of the loan for funding the acquisition of All for One Midmarket Solutions, which were incurred in the first quarter of The financial result after nine months of minus EUR 0.7 million (prior year: EUR 0.1 million) includes further onetime expenses in the amount of some EUR 0.4 million, which arose in the first quarter for arranging the loan agreement. The nine-month earnings before taxes of EUR 0.3 million (prior year: EUR 1.3 million) are confronted by a dramatically increased income-tax expense of EUR 1.6 million (prior year: EUR 0.7 million), of which, however, only a share of EUR 0.5 million (prior year: EUR 0.2 million) has an impact on liquidity. Among other factors, certain companies that did not have any loss carry forwards generated profits, which in turn resulted in related tax charges. Furthermore, no additional deferred tax assets were recognised on the current tax losses, which would have led to a subsequent reduction in the group s tax expenses. The nine-month earnings after taxes were minus EUR 1.3 million (prior year: EUR 0.6 million), which corresponds to earnings per share (IFRS) of minus 24 euro cents (prior year: 14 euro cents) that were determined on the basis of an unchanged number of 5,173,418 shares. Balance Sheet and Cash Flow Total balance sheet assets rose from EUR 42.1 million (31 December 2005) to EUR 63.2 million, an increase attributable in part to the inclusion of All for One Midmarket Solutions. Total goodwill and other intangible assets increased from EUR 5.7 to 18.0 million, while trade accounts receivable improved from EUR 6.6 to 10.8 million. The shareholders equity of EUR 25.3 million (31 December 2005: EUR 26.7 million) accounts for 40% (31 December 2005: 63%) of the balance sheet total of EUR 63.2 million (31 December 2005: EUR 42.1 million). The balance of accounts is healthy. Despite interest and principal 4

5 repayments in an amount totalling EUR 3.0 million for servicing the acquisition loan and leasing commitments, the cash and cash equivalents of EUR 11.4 million are about on par with those of the prior year (30 September 2005). Cash flows from operating activities improved to EUR 3.0 million (prior year: EUR 2.8 million) in spite of pre-tax earnings that were about EUR 1 million lower than that of the prior year and EUR 0.6 million in cash used for one-time expenses. Personnel The average nine-month staffing strength expressed in fulltime equivalents was 415 (prior year: 301 FTEs) and there were 435 people (prior year: 309 people) employed in the AC Group as at 30 September Investor Relations SES Research, a Warburg Group company, has assumed coverage of AC-Service AG. A comprehensive research study about the company was published on 2 November 2006 with a»buy«recommendation and a fair value of EUR 8.40 ( Outlook: Forecasts Reaffirmed After a strong third quarter, we continue to believe that for the full 2006 year we will achieve the objectives that were announced in March 2006 with the presentation of the 2005 annual financial statements. Accordingly, the annual sales for 2006 should be in the neighbourhood of EUR 67 to 70 million, while the EBITA will be within the range of from EUR 2.4 to 2.9 million. Herbert Werle Marco Fontana Lars Landwehrkamp Chairman of the Board Member of the Board Member of the Board 5

6 Shares Held by Members of Corporate Bodies Von Organmitgliedern gehaltene Aktien Shares Aktien Shares Aktien Supervisory Board Aufsichtsrat Peter Brogle Rainer Schad Peter Fritsch Board of Directors Vorstand Herbert Werle Marco Fontana Lars Landwehrkamp - - Consolidated Statement of Recognised Income and Expense Konsolidierte Darstellung der im Eigenkapital erfassten Gewinne und Verluste Restatement of previous years (change in accounting standard IFRIC 4) Anpassung Vorjahre (Änderung der Rechnungslegung IFRIC 4) Restatement of purchase price allocation KWP Anpassung Erstkonsolidierung KWP Restatement of purchase price allocation AC Solutions, Vienna Anpassung Zukauf von Anteilen an AC Solutions, Wien - 17 Dividend payments to minority shareholders Dividendenzahlung an Minderheitsaktionäre - ( 48) Translation differences Differenz aus Umrechnung von Abschlüssen in Fremdwährung ( 109) ( 27) Hedging-reserve according to IAS 39 Absicherungsrücklage nach IAS 39 ( 4) - Net income and expense recognised directly in equity Direkt im Eigenkapital erfasste Gewinne und Verluste Result for the period (adjusted) Periodenergebnis (angepasst) (1 273) 633 Total recognised income and expense Total im Eigenkapital erfasste Gewinne und Verluste Attributable to: Aufgeteilt auf: Minority interests Anteile Dritter ( 35) 246 Equity holders of the parent Anteilseigner der Muttergesellschaft Total recognised income and expense for the period Total für die Periode erfasste Gewinne und Verluste

7 Group Profit and Loss Account Gewinn-und-Verlust-Rechnung des Konzerns Notes Erläuterungen 9 Months Months Months Months Sales to third parties Umsatzerlöse Other operating income Sonstige betriebliche Erträge Cost of traded goods and third party services Materialaufwand und bezogene Leistungen (14 081) (6 064) (5 110) (1 974) Personnel costs Personalaufwand (25 045) (18 071) (8 454) (5 834) Total depreciation and amortisation Abschreibungen 4 (2 243) (1 684) ( 773) ( 485) Other operating costs Sonstiger betrieblicher Aufwand (9 202) (7 013) (2 997) (2 383) EBIT Operatives Ergebnis Financial income Finanzertrag Financial expense Finanzaufwand (1 147) ( 153) ( 347) ( 57) Financial result Finanzergebnis 7 ( 731) 143 ( 183) 42 Result from associated company Ergebnis aus assoziierter Gesellschaft - ( 8) - - EBT Ergebnis vor Steuern Income tax Ertragsteuern 8 (1 584) ( 697) ( 601) ( 291) Earnings after tax Ergebnis nach Steuern (1 273) Attributable to: Davon zuzurechnen: Equity holders of the parent den Aktionären des Mutterunternehmens (1 216) Minority shareholders den Minderheitsanteilseignern ( 57) ( 116) 2 ( 46) Earnings per share in EUR (undiluted and diluted) Ergebnis pro Aktie in EUR (unverwässert und verwässert) ( 0,24) 0,14 0,01 0,08 Average number of shares in circulation Durchschnittlich im Umlauf befindliche Aktien

8 Group Balance Sheet Bilanz des Konzerns Assets Vermögenswerte Notes Erläuterungen Non-current assets Langfristige Vermögenswerte Goodwill Geschäfts- und Firmenwerte Other intangible assets Sonstige immaterielle Vermögenswerte Tangible fixed assets Sachanlagen Other assets Sonstige Vermögenswerte Deferred tax assets Latente Steueransprüche Total non-current assets Total langfristige Vermögenswerte Current assets Kurzfristige Vermögenswerte Inventories Vorratsvermögen Trade accounts receivable Forderungen aus Lieferungen und Leistungen Current income tax assets Laufende Ertragsteueransprüche Other assets Sonstige Vermögenswerte Cash and cash equivalents Zahlungsmittel und -äquivalente Total current assets Total kurzfristige Vermögenswerte Total assets Total Vermögenswerte

9 Group Balance Sheet Bilanz des Konzerns Equity and liabilities Eigenkapital und Verbindlichkeiten Shareholders' equity Eigenkapital Share of equity attributable to equity holders of the parent Den Aktionären des Mutterunternehmens zurechenbarer Anteil am Eigenkapital Notes Erläuterungen Issued share capital Gezeichnetes Kapital Treasury stock Eigene Aktien (1 023) (1 023) Capital reserve Kapitalrücklage Currency conversion reserve Währungsumrechnungsrücklage ( 73) 38 Hedging-reserve according to IAS 39 Absicherungsrücklage nach IAS 39 7 ( 4) - Accumulated result Angesammeltes Ergebnis (Bilanzverlust) (2 518) (1 302) Share of equity attributable to equity holders of the parent Den Aktionären des Mutterunternehmens zurechenbarer Anteil am Eigenkapital Minority interests Minderheitsanteile Total equity Total Eigenkapital Liabilities Verbindlichkeiten Non-current liabilities Langfristige Verbindlichkeiten Provisions Rückstellungen Pension liabilities Pensionsverbindlichkeiten Financial liabilities Finanzverbindlichkeiten Deferred tax liabilities Latente Steuerverbindlichkeiten Other liabilities Sonstige Verbindlichkeiten Total non-current liabilities Total langfristige Verbindlichkeiten Current liabilities Kurzfristige Verbindlichkeiten Provisions Rückstellungen Current income tax liabilities Laufende Ertragsteuerverbindlichkeiten Financial liabilities Finanzverbindlichkeiten Trade accounts payable Verbindlichkeiten aus Lieferungen und Leistungen Other liabilities Sonstige Verbindlichkeiten Total current liabilities Total kurzfristige Verbindlichkeiten Total liabilities Total Verbindlichkeiten Total equity and liabilities Total Eigenkapital und Verbindlichkeiten

10 Group Cash Flow Statement Mittelflussrechnung des Konzerns Cash flow from operating activities Mittelfluss aus operativer Geschäftstätigkeit EBT Ergebnis vor Steuern Adjustments for: Notes Erläuterungen Anpassungen für: Depreciation and amortisation of non-current assets Abschreibungen auf langfristige Vermögenswerte Hardware purchased under finance leases Hardwareeinkäufe im Finanzierungsleasing Hardware sold under finance leases Hardwareverkäufe im Finanzierungsleasing (2 141) (3 230) (Decrease) in value adjustments and provisions (Abnahme) der Wertberichtigungen und Rückstellungen ( 547) ( 737) Foreign exchange (profit) losses Fremdwährungs(-gewinn)-verluste ( 41) 11 Loss (profit) from sale of non-current assets Verlust (Gewinn) aus Abgang von langfristigen Vermögenswerten 24 ( 48) Interest result (net) Zinsergebnis, netto 371 ( 148) Share of loss from associated company Anteiliger Verlust assoziierte Gesellschaft - 8 Adjusted net result before changes in current assets and nonfinancial liabilities Bereinigtes Ergebnis vor Veränderungen der kurzfristigen Vermögenswerte und der nicht finanziellen Verbindlichkeiten 223 ( 491) (Increase) decrease in inventories (Zunahme) Abnahme Vorratsvermögen ( 133) 2 Decrease in trade accounts receivable Abnahme der Forderungen aus Lieferungen und Leistungen Decrease in other assets Abnahme der sonstigen Vermögenswerte (Decrease) in trade accounts payable (Abnahme) der Verbindlichkeiten aus Lieferungen und Leistungen (4 246) ( 801) (Decrease) in pension liabilities (Abnahme) der Pensionsverbindlichkeiten ( 3) - (Decrease) increase in other liabilities (Abnahme) Zunahme der sonstigen Verbindlichkeiten ( 694) 276 Cash flow from operating activities before taxation Mittelfluss aus operativer Geschäftstätigkeit vor Steuern Income tax payments Ertragsteuerzahlungen ( 454) ( 216) Cash flow from operating activities Mittelfluss aus operativer Geschäftstätigkeit

11 Group Cash Flow Statement Mittelflussrechnung des Konzerns Cash flow from investing activities Mittelfluss aus Investitionstätigkeit Cash flow from purchase of tangible fixed assets Mittelfluss aus Kauf von Sachanlagen Cash flow from purchase of intangible assets Mittelfluss aus Kauf von immateriellen Vermögenswerten Cash flow from purchase of other intangible assets Mittelfluss aus Kauf von sonstigen Vermögenswerten Cash flow from acquisition of shares (net of cash acquired) Mittelfluss aus Beteiligungserwerb (abzüglich erworbene Zahlungsmittel) Cash flow from sale of tangible fixed assets Mittelfluss aus Verkauf von Sachanlagen Cash flow from disposal of other assets Mittelfluss aus Veräußerung von sonstigen Vermögenswerten Cash flow from interest received Mittelfluss aus erhaltenen Zinsen Cash flow from investing activities Mittelfluss aus Investitionstätigkeit Cash flow from financing activities Mittelfluss aus Finanzierungstätigkeit Cash flow from change in short-term bank borrowings Mittelfluss aus Veränderung Bankkontokorrentkredite Dividend payments to minority shareholders Dividendenzahlung an Minderheitsaktionäre Cash flow from long-term financial liabilities Mittelfluss aus der Aufnahme langfristiger Finanzverbindlichkeiten Cash flow from repayment of financial liabilities Mittelfluss aus Tilgung Finanzverbindlichkeiten Cash flow from interest paid Mittelfluss aus gezahlten Zinsen Cash flow from financing activities Mittelfluss aus Finanzierungstätigkeit Increase (decrease) in cash and cash equivalents Zunahme (Abnahme) der Zahlungsmittel und -äquivalente Effect of exchange rate fluctuations on cash and cash equivalents Einfluss von Wechselkursänderungen auf die Zahlungsmittel und -äquivalente Cash and cash equivalents at the beginning of the year Zahlungsmittel und -äquivalente zu Beginn des Jahres Cash and cash equivalents at the end of the period Zahlungsmittel und -äquivalente am Ende der Berichtsperiode Significant non-cash transactions Bedeutende nicht liquiditätswirksame Vorgänge Initial recognition of tangible fixed assets in finance leases Ersterfassung von Sachanlagen im Finanzierungsleasing Claim to maintenance under finance lease Erwerb Wartungsansprüche im Finanzierungsleasing Notes Erläuterungen (1 655) ( 989) ( 42) ( 5) - - (14 481) (2 679) (15 793) (3 217) ( 104) - - ( 49) (2 453) (1 067) ( 557) ( 99) (1 215) ( 403) (1 631) ( 40) ( 33)

12 Segment Reporting Segmentberichterstattung Segment sales Segmentumsätze 9 Months Months Months Months Managed IT Services SAP Solutions Human Resource Services Other 0perations Elimination of intersegment sales Konsolidierungen Rundungen (1 319) (1 482) ( 462) ( 476) Total sales Total Umsatzerlöse Segment sales with third parties Umsatz mit Dritten Managed IT Services SAP Solutions Human Resource Services Other Operations Total sales Total Umsatzerlöse Segment results Operative Segmentergebnisse Managed IT Services SAP Solutions ( 205) ( 114) Human Resource Services Other Operations Unallocated corporate expenses Nicht zugeordnete Konzernaufwendungen (1 485) (1 275) ( 207) ( 359) Total operating result Total operatives Ergebnis EBITA by segment EBITA nach Segmenten Managed IT Services SAP Solutions ( 68) Human Resource Services Other Operations Unallocated corporate expenses Nicht zugeordnete Konzernaufwendungen (1 479) (1 268) ( 218) ( 357) Total EBITA Total EBITA

13 Selected Notes to the Interim Report Ausgewählte Erläuterungen zum Zwischenbericht 1. General Principles The unaudited consolidated interim report of the AC Group as at 30 September 2006 was prepared in accordance with International Financial Reporting Standards (IFRS). This interim reporting complies with IAS 34»Interim Financial Reporting«. 2. Accounting and Valuation Methods With the exception of the following new provisions, this interim report was prepared using the accounting principles that applied for the consolidated annual financial statements as at 31 December The IFRS accounting standards that took effect on 1 January 2006 were applied. IFRIC 4 took effect on 1 January 2006 and was applied by the AC Group for the first time. Due to this accounting change the values for the comparable periods had to be adjusted accordingly. This resulted in a reduction in sales in the first nine months of 2006 in the amount of minus EUR 20 K (1 Jul to 30 Sep 05: EUR 124 K), a decline in the EBIT in the amount of minus EUR 68 K (1 Jul to 30 Sep 05: EUR 200 K) and a change in earnings after taxes of EUR 85 K (1 Jul to 30 Sep 05: EUR 185 K). To the extent that the prerequisites for hedge accounting for interest rate hedging have been met, such transactions will be recognised from 1 April 2006 according to the hedge accounting requirements of IAS 39. The effective part of the change in fair value for the hedge of interest-rate risk is reported under equity (hedging reserve under IAS 39) and takes into account deferred taxes. The ineffective part is recognised immediately in the profit and loss account. The changes in fair value are recognised in the profit and loss account if the requirements for hedge accounting have not been fulfilled. 3. Seasonal Fluctuations in the Results for the Quarter The business divisions are subject to differing seasonal fluctuations. In addition, the conclusion of large contracts and the processing of these orders can result in significant differences in quarterly sales and earnings. 4. Depreciation and Amortisation Included in the depreciation and amortisation for these first nine months are EUR 715 K (comparable period: EUR 173 K) of regular amortisation of intangible assets. The regular amortisation of intangible assets in the third quarter totals EUR 255 K (comparable period: EUR 68 K). 5. Other Assets The other assets include accounts receivable from finance lease agreements totalling EUR 6,759 K (31 Dec 05: EUR 7,560 K). The current portion totals EUR 2,998 K (31 Dec 05: EUR 3,558 K). 6. Financial Liabilities Credit Agreement for Financing the Acquisition of All for One Systemhaus GmbH Midmarket Solutions In order to fund the acquisition of the shares of All for One Systemhaus GmbH Midmarket Solutions (All for One GmbH for short), AC-Service AG and the Dresdner Bank AG, Frankfurt, entered into a credit agreement for an acquisition loan of EUR 15,500 K and an operational funding line of credit of EUR 4,000 K. The agreement is dated 13 February 2006 and has a term of up to 30 December Repayment of the acquisition loan is made semi-annually on 30 June and 30 December of each year at fixed contractual repayment rates. In accordance with the repayment plan, EUR 1,250 K was repaid as at 30 September Additional required repayments in the amount of EUR 2,250 K are scheduled to be made by 30 September Other Financial Liabilities The financial liabilities include obligations from finance lease agreements in the amount of EUR 2,467 K (31 Dec 05: EUR 2,577 K). The current portion totals EUR 1,054 K (31 Dec 05: EUR 1,208 K). The portion of net cash used in principal repayment on finance lease liabilities totals EUR 1,099 K (comparable period: EUR 904 K). The other financial liabilities, consisting of loans and current accounts at banks, total EUR 336 K (31 Dec 05: EUR 545 K). The current portion thereof totals EUR 336 K (EUR 511 K). 7. Interest Rate Hedging In accordance with the terms of the credit agreement, 70% of the interest-rate risk of the acquisition loan must be covered through interest-rate hedges. For this purpose an interest-rate swap agreement over an initial amount of EUR 7,000 K and a term of up to 30 December 2009 was signed with the Dresdner Bank on 2 March The agreement stipulates that AC- Service AG will pay quarterly interest in the amount of 3.47% (fixed interest rate) on the secured amount and will simultaneously receive interest based on the 3-month Euribor. The fair value of this interest-rate hedge was EUR 22 K as at 30 September 2006 and is reported under other current assets. The fair value of the interest-rate hedge was EUR 26 K as at 31 March Because the AC Group did not apply any hedge 13

14 accounting at that time, the fair value of EUR 26 K at 31 March 2006 was reported under financial income. The change in fair value up to 30 September 2006 totalled minus EUR 4 K and is recognised under equity. In addition, an interest-rate cap for EUR 4,000 K and a term of up to 30 June 2010 was signed with the Dresdner Bank on 2 March With this the 3-month Euribor interest rate is limited to 3.25%. The bank reimburses AC-Service AG for any amounts of interest in excess of that. The fair value of this interest-rate hedge at 30 September 2006 was minus EUR 100 K and is reported under other current liabilities. Under certain capital-market conditions a bonus is due for this hedge on interest-rate risk beginning on 6 March 2008 until 30 June This bonus will be from zero to 3.5% p.a. depending on the difference between the 2-year and 10-year swap rates. In light of these circumstances, the requirements for hedge accounting have not been met. Therefore the changes in fair value from this transaction are recognised in their entirety under the financial result. 8. Income Taxes Of the reported income taxes, EUR 941 K (comparable period: EUR 226 K) are deferred taxes. 9. Related Parties There were no unusual developments in the business relationships with related companies and individuals during the first nine months of the 2006 financial year. 14

15 Investor Relations Facts and Figures Investor Relations Daten und Fakten The AC-Service Share ISIN DE WKN Stock Exchange Prime Standard Date of Listing Share Capital EUR 16.2 million Number of Shares 5,400,000 (Registered Shares) Par Value EUR 3 Number of Shares in Circulation on ,173,418 Shareholder Structure (approximate distribution according to statements of owners) BEKO HOLDING AG ca. 52% Board of Directors ca. 4% Free Float ca. 44% Accounting Standards IFRS Financial Calendar Quarterly Report 3/ Annual Report Analyst Presentation Analyst Presentation, Frankfurt German Equity Forum Quarterly Report 1/2007 Fall 2006, Frankfurt Annual General Meeting, Stuttgart Quarterly Report 2/ Quarterly Report 3/ Analyst Presentation Further dates and information can be found on the internet at About AC-Service Operating primarily in Germany, Austria and Switzerland, AC-Service AG is an industry focussed full-scale IT service provider for the midsize business market. Market observers rank AC-Service AG among the leading companies serving the German-language market for SAP and HR services. AC-Service AG features a number of established brands including AC, ACCURAT, All for One, Process Partner and KWP. Originating in Switzerland, the AC Group has been operating for over 45 years, has amassed an impressive track record and now serves over 1,200 clients. With wide-ranging expertise in the whole of the IT value chain, AC implements integral solutions providing SAP licenses and software maintenance, industry solutions, business consulting, business intelligence, managed IT services on a»leading edge technology basis«, payroll and human capital management as well as HR business process outsourcing. With its outstanding service culture and extensive industry know-how, the AC Group makes claim to a quality leadership and is regularly recognised with awards for outstanding customer satisfaction and service quality. AC-Service AG pursues a clear growth strategy, currently employs around 420 staff members (prior year: around 300) and expects sales of around 67 to 70 million Euros (prior year: EUR 45.7 million) in AC-Service AG is listed in the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE , WKN ) and is a subsidiary of BEKO HOLDING AG, which owns approximately 52 percent of its stock. 15

16 AC-Service helps companies to focus on their core business. For over 45 years. With industry-specific business process know-how, high-quality solutions and services featuring established brands: AC, ACCURAT, All for One, Process Partner and KWP. AC-Service AG Schockenriedstraße 7 D Stuttgart Telefon +49 (0) Telefax +49 (0)