Announcement no. 11/ May 2006

Transcription

1 SimCorp A/S Oslo Plads 12 DK-2100 Copenhagen O Denmark Telephone: Telefax: info@simcorp.com Company Reg. No: Announcement no. 11/ May 2006 Interim report for the three months ended 31 March 2006: Good start to 2006 Summary Business activity continued to perform strongly and in line with expectations. Revenue for the first quarter was EUR 23.9m while EBIT was EUR 2.7m, which was EUR 1.7m lower than in 2005 due to less recognised licence income. The order book increased by EUR 1.8m during the quarter. SimCorp maintains its full-year revenue and EBIT forecast SimCorp s Board of Directors today reviewed and approved the Group s interim report for the three months ended 31 March Highlights of the report are: SimCorp continues its strong business performance and its results are in line with expectations. revenue was EUR 23.9m, a slight improvement over the same period of last year. Page 4. Total order intake was EUR 7.2m, a 20% improvement on The order book increased by EUR 1.8m to stand at EUR 24.8m at 31 March Income recognised from licences and add-on licences amounted to EUR 5.4m in, down 34% relative to Page 3 The level of sales and professional services remained high. Professional service fees were EUR 9.0m, up 30% relative to the same period of last year to the highest quarterly level ever. Maintenance income was up by 15% relative to Page 4 EBIT was EUR 2.7m, which was EUR 1.7m lower than in 2005 due to a drop in recognised income from licences. Page 5 SimCorp upholds its projections for 2006 of revenue in the EUR m range with an EBIT margin of around 20%. At 31 March 2006, contracts equalling EUR 80.7m of the revenue projected for 2006 had been secured, EUR 9.3m more than at the same time last year. The Group s pipeline of potential licence contracts is progressing satisfactorily. Page 5 Investor meeting SimCorp s Management Board will present the interim report at an investor presentation to be held on Thursday, 11 May 2006 at 3 p.m. at the company s offices at Oslo Plads 12, DK-2100 Copenhagen Ø. The meeting will be open to the public. An electronic meeting facility has been set up through: Phone: For slide presentation via Internet link Click here The meeting can be accessed afterwards via SimCorp s web site

2 11 May 2006 Page 2 of 12 Financial highlights for the SimCorp Group (EURm) Profit Revenue Earnings from operations (EBIT) Financial items Profit before tax Profit for the period Balance sheet Total assets Equity Cash flows - cash from operating activities cash used in investing activities (0.8) (0.7) Key ratios Earnings per share basis, EPS (EUR) Diluted earnings per share, EPS-D (EUR) EBIT margin (%) Cash flow per share, CFPS (EUR) Return on equity (% p.a.) Equity ratio (%) Market cap at 31 March (EURm) EURm ,3 22,8 20,3 Revenue, ,9 23,9 4,4 1,2 EBIT, Q2 Q3 Q4 Q2 Q3 Q EURm ,3 13,9 2,7 The income statement, balance sheet and other financial data as of and for the three months ended 31 March 2006 are annexed to this announcement. The interim financial statements are unaudited and have been prepared in compliance with IFRS recognition and measurement requirements, which will be applied in the 2006 annual report and which are outlined in the company's 2005 annual report.

3 11 May 2006 Page 3 of 12 Interim report for the three months ended 31 March 2006 Development in sales and orders SimCorp continued the positive business performance in, generating EBIT of EUR 2.7m on revenue of EUR 23.9m. The business volume with existing customers performed extremely well in. Maintenance income was up by 15% relative to 2005 and income from professional services improved by 30% yoy to the highest quarterly level ever. SimCorp s order-driven sales were in line with expectations as the order book increased by EUR 1.8m to EUR 24.8m during the quarter. The order intake in, generated from new customers and add-on sales to existing customers, was EUR 7.2m, as compared with EUR 6.0m in Sales activities were satisfactory, and new SimCorp Dimension contracts were signed with four clients: ALTE LEIPZIGER - HALLESCHE of Germany, PGGM of the Netherlands, Alliance Trust of the UK and Sydinvest of Denmark. The IT2 business reported a very positive performance in. A total of 14 new IT2 agreements were signed, including one for IT2 Choice. After the end of the quarter, the Group signed yet another SimCorp Dimension contract, with INKA of Germany. SimCorp Dimension, quarterly order intake and order book (aggregate new licences and add-on licences), Order intake Order book EURm Q2 Q3 Q

4 11 May 2006 Page 4 of 12 Order intake and order book performance, 2006 Customers at 31 March Total order intake *) Order book at 31 March*) - of which Growth Growth Product Total operational EURm EURm 3M 12M SimCorp Dimension % 6% IT % 63% *) Order intake and order book include licences to new customers as well as add-on licences to existing customers. Revenue At EUR 23.9m, consolidated revenue was some 3% higher than in SimCorp Dimension accounted for 94% of total revenue, and income recognised from licence sales and add-on licences amounted to EUR 5.4m which was 34% lower than in 2005 Professional services amounted to EUR 9.0m which was 30% higher than in Regular maintenance income continued to improve with the completion and implementation of new customer installations increasing by 15% relative to 2005 to EUR 9.1m. Other income including course fees amounted to EUR 0.4m. The distribution of revenue is shown in the table below: Revenue breakdown Revenue 2006 (EUR) Share of consolidated revenue 2006 Growth relative to 2005 Licences % (34%) Professional services % 30% Maintenance % 15% Training and other services 0.4 1% 33% Total % 3% Some 91% of consolidated revenue was generated in the European market and 64% of consolidated revenue was generated in markets outside the Nordic region. Additional segment information is set out on page 12. Costs SimCorp s total costs (including depreciation and amortisation) amounted to EUR 21.2m in, an increase of 12% relative to Salaries and staff-related costs made up more than 70% of total costs, up 17% due to new recruitments primarily from Group performance The Group posted EBIT of EUR 2.7m in 2006 against EBIT of EUR 4.4m in the same period of Net financial income for the period amounted to EUR 0.3m. The Group thus posted a pre-tax profit of EUR 3.0m against a profit of EUR 4.8m in After tax totalling EUR 0.9m, the Group posted a net profit for 2006 of EUR 2.1m against a profit of EUR 3.4m in the same period of last year.

5 11 May 2006 Page 5 of 12 Balance sheet items and cash flow SimCorp s total assets stood at EUR 109.4m at 31 March 2006, including securities and cash of EUR 68.2m, which was basically unchanged from the corresponding liquidity balance a year ago. The Group had total receivables of EUR 23.4m at 31 March 2006, representing an increase of EUR 4.9m from 31 March Cash gained from operating activities during the period amounted to EUR 5.8m. Income taxes paid amounted to EUR 2.3m, compared with EUR 1.8m in of last year. EUR 0.8m was used for investing activities during the period, while financing activities lifted liquidity by EUR 0.7m. Changes in equity The company s equity amounted to EUR 65.4m at 31 March Equity increased by the profit of EUR 2.1m, the proceeds of a share capital increase in connection with the exercise of warrants of EUR 0.4m and other adjustments of EUR 0.6m., and was reduced by the declared dividend of EUR 15.4m. Outlook SimCorp's performance in 2006 was satisfactory and fully in line with expectations. Demand for SimCorp products and services continued to grow. The company s pipeline of potential licence contracts is progressing well, and considering the positive outlook for continued growth in business activities, the Group continues to plan capacity expansion in the R&D department and in the market units. SimCorp upholds its projections for 2006 of revenue in the EUR m range with an EBIT margin of around 20%. At 31 March 2006, contracts equalling EUR 80.7m of the revenue projected for 2006 had been secured, EUR 9.3m more than at the same time last year. The Group upholds its long-term expectations for a positive business and financial performance. The Group is strongly positioned in the market, backed by its corporate structure, SimCorp Dimension and IT2.

6 11 May 2006 Page 6 of 12 Board resolutions etc. Employee share scheme The Board of Directors today resolved to continue recent years policy and set up an employee share scheme for 2006 which will be implemented without new shares being issued. This year s scheme comprises up to 50,000 shares of DKK 10 each (DKK 500,000 nominal value) to be distributed among the employees of the company and its subsidiaries. The price of the employee shares was fixed at DKK 512 for each share of DKK 10. Incentive programme At its meeting today the Board of Directors resolved to increase the Group s existing share-based incentive programme by a total of 37,200 warrants entitling the holders to purchase a total of 37,200 shares of DKK 10 in the company (a total nominal value of DKK 372,000). The 37,200 warrants will be distributed as follows: warrants to members of the Board of Directors (as approved by the shareholders on 30 March 2006), 12,000 warrants to the company s Management Board and 21,500 warrants to a number of senior management employees in the Group. The warrants will be issued with a term of up to three years and an exercise price that is at least 5% higher than the market price of SimCorp shares at the time the warrants are granted. 20% of the warrants will have a term of one year and an exercise price that is 5% higher than the market price. 30% will have a term of two years and an exercise price that is 10% higher than the market price, and 50% will have a term of three years and an exercise price that is 15% higher than the market price. Based on the Black & Scholes valuation method, the warrants granted have a total theoretical value of approximately EUR 1,1m.

7 11 May 2006 Page 7 of 12 Signatures The Board of Directors and the Management Board have today considered and adopted the interim report for the period 1 January - 31 March The interim report is unaudited and in accordance with the rules of the International Financial Reporting Standards on recognition and measurement as adopted by the EU and additional Danish disclosure requirements for interim reports for listed companies. We consider the accounting policies to be appropriate to the effect that the interim report gives a true and fair view of the Group s assets, liabilities and financial position as of 31 March 2006 and of the profit of the Group s operations and cash flow for the period 1 January - 31 March Management Board Peter L. Ravn Peter Theill Torben Munch CEO Board of Directors Steen Rasborg Torben Ballegaard Sørensen Susan Haroun Chairman Vice Chairman Carl Christian Ægidius Kim S. Andreasen Ulrich Rosenquist Enquiries regarding this announcement should be addressed to: Peter L. Ravn, Chief Executive Officer, SimCorp A/S, ( , ) or Peter Theill, Executive Vice President, SimCorp A/S, ( , ) or Torben Munch, Executive Vice President, SimCorp A/S, ( , ).

8 11 May 2006 Page 8 of 12 Consolidated income statement EUR 000 Income Revenue 23,865 23,296 Cost of sales 9,234 8,598 Gross profit 14,631 14,698 Other operating income Research and development costs 6,169 4,736 Sales and distribution costs 3,758 3,119 Administrative expenses 2,040 2,458 Other operating expenses 0 4 Profit from operations (EBIT) 2,709 4,398 Share of profit/(loss) after tax for the period in associated companies 11 0 Financial income Financial expenses Profit before tax 3,023 4,781 Tax on profit for the period 906 1,346 Net profit for the period 2,117 3, Which is distributed as follows: SimCorp A/S shareholders 2,117 3,435 Minority shareholders 0 0 Net profit for the period 2,117 3,435

9 11 May 2006 Page 9 of 12 Consolidated balance sheet At 31 March EUR 000 ASSETS March March Non-current assets Intangible assets 5,911 1,702 Property, plant and equipment 2,086 2,447 Other non-current assets 9,847 11,109 Total non-current assets 17,844 15,258 Current assets Receivables 23,372 18,466 Bonds 26,549 27,287 Cash and cash equivalents 41,645 41,534 Total current assets 91,566 87,287 Total assets 109, ,545 LIABILITIES March March Equity Share capital 6,616 6,557 Retained earnings 58,827 58,300 Share of equity attributable to SimCorp A/S shareholders 65,443 64,857 Minority interest 0 0 Total equity 65,443 64,857 Liabilities Non-current liabilities Deferred tax 2,077 5,934 Pensions and similar liabilities 0 39 Provisions 1, Total non-current liabilities 4,020 6,824 Current liabilities Prepayments from customers 8,011 5,947 Trade payables 4,225 4,132 Income taxes 3, Other payables 8,993 7,664 Deferred income Accrued dividend 15,438 12,250 Total current liabilities 39,947 30,864 Total liabilities and equity 109, ,545

10 11 May 2006 Page 10 of 12 Consolidated cash flow statement EUR Profit for the period 2,117 3,436 Adjustments (13,438) 1,594 Changes in working capital 17,175 6,212 Cash flow from/used in operating activities before financial items 5,854 11,242 Financial income received Financial expenses paid (349) (104) Income taxes paid (2,304) (1,847) Net cash flow from/used in operating activities 3,878 10,050 Acquisition in associated companies (16) 0 Purchase of intangible assets (482) (86) Purchase of property, plant and equipment (256) (596) Sale of property, plant and equipment 30 3 Acquisition of investments (109) (63) Sale of investments 16 7 Net cash flow from/used in investing activities (817) (735) Change in liquidity from/used in operating and investing activities 3,061 9,315 Exercise of warrants 375 1,206 Sale of bonds 26,918 0 Purchase of bonds (26,585) (13,526) Net cash flow from/used in financing activities 708 (12,320) Change in cash and cash equivalents 3,769 (3,005) Total cash flows for the period Cash and cash equivalents at beginning of period 37,911 44,296 Foreign exchange adjustment of cash and cash equivalents (35) 243 Total cash and cash equivalents at 31 March 41,645 41,534

11 11 May 2006 Page 11 of 12 Key ratios EBIT margin (%) ROIC (return on invested capital) (%) Debtor turnover rate ( ) Equity ratio (%) Revenue/invested capital (x) Return on equity (% p.a.) Share related data Earnings per share basic, EPS (EUR) Diluted earnings per share, EPS-D (EUR) Cash flow per share, CFPS (EUR) Book value per share at end of period, BVPS (EUR) Share price end of period (DKK) Share price/net value per share, P/BV (EUR) Average number of shares, diluted 4,844,292 4,811,004 EV/EBIT Employee related data Average number of employees Annualised revenue per employee (EUR 000) Profit from operating activities per employee (EUR 000)

12 11 May 2006 Page 12 of 12 Statement of changes in equity 1 January - 31 March EUR 000 Share capital Exchange adjustment reserve Retained earnings Dividend Total equity Equity at 1 january , ,411 15,418 77,818 Changes in equity during period: Share-based payment etc Tax on changes in equity Net gains taken directly to equity 6, ,435 15,418 78,842 Profit for the period 0 0 2, ,117 Comprehensive income 6, ,552 15,418 80,959 Additions during period 11 (452) (78) Approved dividend (15,438) (15,438) Equity at 31 March 6,616 (68) 58,915 (20) 65,443 Geographical revenue structure 1 January - 31 March, EUR Amount Distribution Amount Distribution Nordic region 8,507 36% 6,927 30% Germany and Switzerland 7,585 32% 8,681 37% UK and Ireland 2,012 8% 1,378 6% Benelux 3,641 15% 3,082 13% Other markets 2,120 9% 3,228 14% Total income 23, % 23, %