PSI Software SE

Quarterly Report • May 16, 2013

ENERGY EFFICIENCY

WORK EFFICIENCY

MATERIAL EFFICIENCY

Report on the 1st Quarter of 2013

	01/01-31/03/13 in KEUR	01/01-31/03/12 in KEUR	Change in KEUR	Change in %
Revenues	45,358	40,841	+4,517	+11.1
Operating Result	2,093	2,044	+49	+2.4
Result before income taxes	2,019	1,600	+419	+26.2
Net result	1,559	1,313	+246	+18.7
Cash and cash equivalents	36,147	35,298	+849	+2.4
Employees on 31 March	1,622	1,517	+105	+6.9
Revenue/Employee	28.0	26.9	+1.1	+4.1

mpf=dêçìé=a~í~=~ë=éÉê=PN=j~êÅÜ=OMNP=~í=~=dä~åÅÉ=EfcopF=

Interim Management Report

_ìëáåÉëë=aÉîÉäçéãÉåí=

b~êåáåÖë=

The PSI Group once again attained a record volume of new orders in the first quarter of 2013 with 73 million Euros (31 March 2012: 69 million Euros). Group sales increased by 11 % to 45.4 million Euros (31 March 2012: 40.8 million Euros), the order book volume on 31 March 2013 grew by 4 % to 145 million Euros (31 March 2012: 140 million Euros). The EBIT for the first quarter of 2013 improved by 2 % to 2.1 million Euros (31 March 2012: 2.04 million Euros), the group net result was, at 1.6 million Euros, 19 % above the previous year (31 March 2012: 1.3 million Euros).

Energy Management (gas, oil, electricity, heat) attained 6 % lower sales of 14.9 million Euros (31 March 2012: 15.8 million Euros) in the first quarter. The EBIT for the segment was, at 0.4 million Euros, considerably below that of the previous year (31 March 2012: 0.8 million Euros). The gas and oil business continued its very good development and was awarded two major contracts from Germany and Russia. The electrical energy business won important contracts from Germany and the European neighbours, but continued to be burdened by the energy transition in Germany and the rollout of the new standard product. The Energy Trading business started with expenses for the bundling and modernisation of the energy data management software.

Sales in Production Management (raw materials, industry, logistics) were, at 23.0 million Euros, 10 % above the value for the previous year (31 March 2012: 20.8 million Euros) in the first three months. The EBIT, at 1.2 million Euros, remained constant (31 March 2012: 1.2 million Euros). The metal industry business continued its good development; logistics was burdened by the high development costs in software for logistics centres.

In Infrastructure Management (transportation and security) sales were significantly increased to 7.5 million Euros (31 March 2012: 4.2 million Euros) as a result of the expansion of the system business. The EBIT for the segment doubled to 0.8 million Euros (31 March 2012: 0.4 million Euros). The business in Southeast Asia and Poland developed especially well.

cáå~åÅá~ä=mçëáíáçå=

The cash flow from operating activities was, at 3.4 million Euros, significantly above the value for the previous year (31 March 2012: 1.8 million Euros). Liquidity increased to 36.1 million Euros (31 March 2012: 35.3 million Euros).

^ëëÉíë=

Compared to 31 December 2012, there have not been any material changes in the Group's assets.

mÉêëçååÉä=aÉîÉäçéãÉåí=

Primarily due to the expansion of capacity in the export markets, the number of employees in the group increased as of 31 March 2013 to 1,622 (31 March 2012: 1,517).

mpfJpÜ~êÉë=

The PSI stock ended the 1st quarter of 2013 with a final price of 15.72 Euros, 2 % above the final 2012 price of 15.41 Euros. In the same period the technology index TecDAX rose by 12.6 %.

oáëâ=oÉéçêí=

The estimate of the corporate risk has not changed since the Annual Report for 31 December 2012.

lìíäççâ=

With the founding of the Brazilian subsidiary PSI Metals Brazil Ltda., PSI is increasing activities in the Latin American market, expanding the on-site support for existing customers and at the same time growing the regional sales activities.

The very high volume of new orders since the beginning of the year represents a good basis for achieving the year's quantitative and qualitative goals. In the coming quarters PSI expects a continued high demand for solutions for the improvement of the energy, working and materials efficiency as well as additional exciting major contracts.

Group Balance Sheet

from 1 January 2013 until 31 March 2013 according to IFRS

	V=jçåíÜ=oÉéçêí=	^ååì~ä=oÉéçêí=
^ëëÉíë=	MNLMNJPMLMVLNO hbro	MNLMNJPNLNOLNN= hbro=
kçå=ÅìêêÉåí=~ëëÉíë=
Property, plant and equipment	14,181	14,242
Intangible assets	47,335	47,487
Investments in associates	285	427
Deferred tax assets	5,742	5,984
	STIRQP	SUINQM=
`ìêêÉåí=~ëëÉíë=
Inventories	4,265	4,020
Trade accounts receivable, net	34,281	34,068
Receivables from long-term development contracts	46,749	42,241
Other current assets	6,830	4,634
Cash and cash equivalents	36,147	33,338
	NOUIOTO	NNUIPMN=
qçí~ä=~ëëÉíë=	NVRIUNR	NUSIQQN=

qçí~ä=bèìáíó=~åÇ=iá~ÄáäáíáÉë=

bèìáíó=
Subscribed capital	40,185	40,185
Capital reserves	35,137	35,137
Reserve for own stock	–336	–106
Other reserves	–6,673	–7,146
Net retained profits	7,126	5,567
	TRIQPV	TPISPT=
kçåJÅìêêÉåí=äá~ÄáäáíáÉë=
Long-term financial liabilities	3,799	3,900
Pension provisions	39,035	38,997
Deferred tax liabilities	2,055	2,105
	QQIUUV	QRIMMO=
`ìêêÉåí=äá~ÄáäáíáÉë=
Trade payables	15,248	15,646
Other current liabilities	33,163	27,976
Liabilities from long-tem development contracts	22,317	18,553
Short-term financial liabilities	4,675	5,449
Provisions	84	178
	TRIQUT	STIUMO=
qçí~ä=Éèìáíó=~åÇ=äá~ÄáäáíáÉë=	NVRIUNR	NUSIQQN=

Group Income Statement

from 1 January 2013 until 31 March 2013 according to IFRS

	P=jçåíÜ=oÉéçêí MNLMNJPNLMPLNP hbro	P=jçåíÜ=oÉéçêí= MNLMNJPNLMPLNO= hbro=
Sales revenues	45,358	40,841
Other operating income	2,102	1,830
Changes in inventories of work in progress	0	5
Cost of materials	–10,093	–6,219
Personnel expenses	–26,717	–24,680
Depreciation and amortization	–902	–955
Other operating expenses	–7,655	–8,778
léÉê~íáåÖ=êÉëìäí	OIMVP	OIMQQ=
Interest income	13	29
Interest expenses	–442	–473
Result from equity investments	355	0
oÉëìäí=ÄÉÑçêÉ=áåÅçãÉ=í~ñÉë=	OIMNV	NISMM=
Income tax	–460	–287
kÉí=êÉëìäí=	NIRRV	NIPNP=
Earnings per share (in Euro per share, basic)	0.10	0.08
Earnings per share (in Euro per share, diluted)	0.10	0.08
Weighted average shares outstanding (basic)	15,691,009	15,676,698
Weighted average shares outstanding (diluted)	15,691,009	15,676,698

Group comprehensive Income Statement

from 1 January 2013 until 31 March 2013 according to IFRS

	P=jçåíÜ=oÉéçêí MNLMNJPNLMPLNP hbro	P=jçåíÜ=oÉéçêí= MNLMNJPNLMPLNO= hbro=
kÉí=êÉëìäí=	NIRRV	NIPNP=
Currency translation foreign operations	396	161
Net losses from cash flows hedges	110	–56
Income tax effects	–33	17
dêçìé=ÅçãéêÉÜÉåëáîÉ=êÉëìäí=	OIMPO	NIQPR=

Group Cash Flow Statement

from 1 January 2013 until 31 March 2013 according to IFRS

	P=jçåíÜ=oÉéçêí MNLMNJPNLMPLNP hbro	P=jçåíÜ=oÉéçêí= MNLMNJPNLMPLNO= hbro=
^pecilt=colj=lmbo^qfkd=^qfsfqfbp=
oÉëìäí=ÄÉÑçêÉ=áåÅçãÉ=í~ñÉë=	OIMNV	NISMM=
^ÇàìëíãÉåíë=Ñçê=åçåJÅ~ëÜ=ÉñéÉåëÉë=
Amortisation on intangible assets	263	251
Depreciation of property, plant and equipment	639	704
Earnings from investments in associated companies	–355	0
Interest income	–13	–29
Interest expenses	442	473
	OIVVR	OIVVV=
`Ü~åÖÉë=çÑ=ïçêâáåÖ=Å~éáí~ä=
Inventories	–239	–296
Trade receivables	–4,607	535
Other current assets	–2,837	–1,914
Provisions	–67	–258
Trade payables	–377	–1,249
Other current liabilities	9,028	2,371
	VMN	ÓUNN=
Interest paid	–84	–61
Income taxes paid	–421	–374
`~ëÜ=Ñäçï=Ñêçã=çéÉê~íáåÖ=~ÅíáîáíáÉë=	PIPVN	NITRP=
^pecilt=colj=fksbpqfkd=^qfsfqfbp=
Additions to intangible assets	–111	–572
Additions to property, plant and equipment	–578	–665
Additions to investments in subsidiaries minus cash acquired	0	–556
Cash inflow from disposals of associated companies	497	0
Cash inflow from disposals of subsidiaries	479	0
Interest received	13	29
`~ëÜ=Ñäçï=Ñêçã=áåîÉëíáåÖ=~ÅíáîáíáÉë=	PMM	ÓNITSQ=
^pecilt=colj=cfk^kfkd=^`qfsfqfbp=
Dividends paid	0	0
Proceeds/repayments from/of borrowings	–765	1,302
Outflows for share buybacks	–230	0
`~ëÜ=Ñäçï=Ñêçã=Ñáå~åÅáåÖ=~ÅíáîáíáÉë=	ÓVVR	NIPMO=
^pe=^ka=^pe=bnrfs^ibkqp= ^q=qeb=bka=lc=qeb=mbofla=
`Ü~åÖÉë=áå=Å~ëÜ=~åÇ=Å~ëÜ=Éèìáî~äÉåíë=	OISVS	NIOVN=
s~äì~íáçåJêÉä~íÉÇ=ÅÜ~åÖÉë=áå=Å~ëÜ=~åÇ=Å~ëÜ=Éèìáî~äÉåíë=	NNP	NSN=
`~ëÜ=~åÇ=Å~ëÜ=Éèìáî~äÉåíë=~í=ÄÉÖáååáåÖ=çÑ=íÜÉ=éÉêáçÇ=	PPIPPU	PPIUQS=
`~ëÜ=~åÇ=Å~ëÜ=Éèìáî~äÉåíë=~í=íÜÉ=ÉåÇ=çÑ=íÜÉ=éÉêáçÇ=	PSINQT	PRIOVU=

Statement of Changes in Equity

from 1 January 2013 until 31 March 2013 according to IFRS

	kìãÄÉê=çÑ= ëÜ~êÉë=áëëìÉÇ=	pÜ~êÉ=Å~éáí~ä	^ÇÇáíáçå~ä é~áÇJáå= Å~éáí~ä	oÉëÉêîÉ=Ñçê íêÉ~ëìêó= ëíçÅâ	líÜÉê= êÉëÉêîÉë	^ÅÅìãìä~íÉÇ= äçëëÉë=	qçí~ä=
	kìãÄÉê=	hbro	hbro	hbro	hbro	hbro=	hbro=
^ë=çÑ=PN=aÉÅÉãÄÉê=OMNN=	NRISTSISVU=	QMINUR	PRINPT	ÓPSU	ÓOINTO	NOU=	TOIVNM=
Group comprehensive result after tax					–4,974	9,358	4,384
Issue of own shares	–17,330			262			262
Dividend distributions						–3,919	–3,919
^ë=çÑ=PN=aÉÅÉãÄÉê=OMNO=	NRISVQIMOU=	QMINUR	PRINPT	ÓNMS	ÓTINQS	RIRST=	TPISPT=
Group comprehensive result after tax					473	1,559	2,032
Share buybacks	14,876			–230			–230
^ë=çÑ=PN=j~êÅÜ=OMNP=	NRISTVINRO=	QMINUR	PRINPT	ÓPPS	ÓSISTP	TINOS=	TRIQPV=

Shares and Options held by Management Board and Supervisory Board as of 31 March 2013

	pÜ~êÉë	léíáçåë=
j~å~ÖÉãÉåí=_ç~êÇ=
Dr. Harald Schrimpf	60,000	0
Armin Stein	23,300	0
pìéÉêîáëçêó=_ç~êÇ=
Dr. Ralf Becherer	1,281	0
Wilfried Götze	54,683	0
Elena Günzler	1,013	0
Bernd Haus	1,000	0
Karsten Trippel	109,750	0
Prof. Dr. Rolf Windmöller	6,305	0

The Management Board of PSI had earnings of KEUR 376 in the first three months of 2013, which consist of a fixed component of KEUR 116 and variable component of KEUR 260.

Because Supervisory Board payments are made in the 4th quarter of the year, the Supervisory Board did not obtain any remuneration in the first three months of 2013.

Notes on the consolidated financial statements as of 31 March 2012

qÜÉ=`çãé~åó=

NK _ìëáåÉëë=^ÅíáîáíáÉë=~åÇ=iÉÖ~ä=_~ÅâÖêçìåÇ=

The business activities of PSI AG and its subsidiaries relate to the development and sale of software systems and products fulfilling the specific needs and requirements of its customers, particularly in the following industries and service lines: utilities, manufacturing, logistics, transport and safety. In addition, the Group provides services of all kinds in the field of data processing, sells electronic devices and operates data processing systems.

The PSI Group is divided into the three core business segments energy management, production management and infrastructure management. The company is listed in the Prime Standard segment of the Frankfurt stock exchange and listed there in the TecDAX.

The company is exposed to a wide range of risks that are similar to other companies active in the dynamic technology sector. Major risks for the development of the PSI Group lie in the success with which it markets its software systems and products, competition from larger companies, the ability to generate sufficient cash flows for future business development as well as in individual risks regarding the integration of subsidiaries, organisational changes and the cooperation with strategic partners.

The condensed interim consolidated financial statements for the period from 1 January 2013 to 31 March 2013 were released for publication by a decision of the management on 26 April 2013.

The condensed interim consolidated financial statements for the period from 1 January 2013 to 31 March 2013 were produced in compliance with IAS 34 "Interim Financial Reporting". The condensed interim consolidated financial statements do not contain all the data and notes prescribed for the annual financial statements and should be read in conjunction with the consolidated financial statements for 31 December 2012.

OK ^ÅÅçìåíáåÖ=~åÇ=s~äì~íáçå=mêáåÅáéäÉë=

With regard to the principles of accounting and valuation and especially the application of International Financial Reporting Standards (IFRS) see the group consolidated financial statements for the financial year 2012.

PK pÉ~ëçå~ä=fåÑäìÉåÅÉë=çå=íÜÉ=_ìëáåÉëë=^ÅíáîáíáÉë

Seasonal effects resulted in the PSI Group operations with regards to the receipt of maintenance revenues in the first quarter of the financial year (deferment of the influences on the result of corresponding incoming payments throughout the year) and significantly greater demand and project accounting in the fourth quarter of the financial year.

QK Ü~åÖÉë=áå=íÜÉ=çåëçäáÇ~íáçå=dêçìé=

On 18 March 2013, the new subsidiary PSI Metals Brazil, Ltda. was founded. The new company will focus on marketing PSI solutions in the Latin American steel industry and providing local support to existing customers.

RK pÉäÉÅíÉÇ=fåÇáîáÇì~ä=fíÉãë=

`~ëÜ=~åÇ=Å~ëÜ=Éèìáî~äÉåíë=

	PN=j~êÅÜ=OMNP	PN=aÉÅÉãÄÉê=OMNO=
	hbro=	hbro=
Bank balances	16,742	26,631
Fixed term deposits	19,370	6,668
Cash	35	39
	PSINQT=	PPIPPU=

`çëíë=~åÇ=Éëíáã~íÉÇ=É~êåáåÖë=áå=ÉñÅÉëë=çÑ=ÄáääáåÖë=çå=ìåÅçãéäÉíÉÇ=Åçåíê~Åíë=

Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues have been recorded but the amounts cannot be billed under the terms of the contracts. Such amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of the contract. Costs and estimated earnings contain directly allocable costs (labour cost and cost of services provided by third parties) as well as the appropriate portion of overheads including pro rata administrative expenses.

Costs and estimated earnings on uncompleted contracts and related amounts are billed as follows:

	PN=j~êÅÜ=OMNP	PN=aÉÅÉãÄÉê=OMNO=
	hbro=	hbro=
Costs incurred on uncompleted contracts	71,723	67,392
Profit shares	11,362	10,505
`çåíê~Åí=êÉîÉåìÉ=	UPIMUR=	TTIUVT=
Payments on account	–58,653	–54,209
Set off against contract revenue	–36,336	–35,656
Receivables from long-term construction contracts	46,749	42,241
Liabilities from long-term construction contracts	22,317	18,553

p~äÉë=êÉîÉåìÉë=

The sales revenues reported in the group income statement break down as follows:

	PN=j~êÅÜ=OMNP	PN=j~êÅÜ=OMNO=
	hbro=	hbro=
Software development and maintenance	33,121	35,227
License fees	6,859	4,551
Merchandise	5,378	1,063
	QRIPRU=	QMIUQN=

q~ñÉë=çå=áåÅçãÉ=

The main components of the income tax expenditure shown in the group income statement are added as follows:

	PN=j~êÅÜ=OMNP hbro=	PN=j~êÅÜ=OMNO= hbro=
Effective taxes expenses
Effective tax expenses	–301	–296
Deferred taxes
Emergence and reversal of
temporary differences	–159	9
q~ñ=ÉñéÉåëÉë=	ÓQSM=	ÓOUT=

pÉÖãÉåí=oÉéçêíáåÖ

The development of the segment results can be found in the Group segment reporting.

Segments of the PSI Group:

• Energy Management: Intelligent solutions for energy suppliers from the electricity, gas, oil, district heating and water markets. Focal points are reliable and economically sound solutions for intelligent network management and trade and sales management in the liberalised energy market.
• Production Management: Software products and individual solutions for production planning, special tasks in production control and efficient logistics. Focuses are the optimisation of the use of resources and the increase of efficiency, quality and profitability.
• Infrastructure Management: High-availability control system solutions designed for monitoring and economically sound operation of infrastructures in the transportation, public safety, environmental protection and disaster prevention areas.

oÉëéçåëáÄáäáíó=pí~íÉãÉåí=

To the best of our knowledge, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the group's development and performance of its position, together with a description of the principal opportunities and risks associated with the expected development of the group in the remaining months of the financial year, in accordance with German proper accounting principles of interim consolidated reporting.

Group Segment Reporting

from 1 January 2013 until 31 March 2013 according to IFRS

		båÉêÖó= j~å~ÖÉãÉåí=		mêçÇìÅíáçå= j~å~ÖÉãÉåí=		fåÑê~ëíêìÅíìêÉ= j~å~ÖÉãÉåí=	oÉÅçåÅáäá~íáçå			mpf=dêçìé=
	PNLMPL= OMNP= hbro=	PNLMPL= OMNO= hbro=	PNLMPL OMNP hbro	PNLMPL OMNO hbro	PNLMPL OMNP hbro	PNLMPL OMNO hbro	PNLMPL OMNP hbro	PNLMPL OMNO hbro	PNLMPL= OMNP= hbro=	PNLMPL= OMNO= hbro=
p~äÉë=êÉîÉåìÉë=									=	=
Sales to external customers		14,885 15,767	23,002	20,839	7,471	4,235	0	0	45,358	40,841
Inter-segment sales	381	155	418	174	1,620	1,540	–2,419	–1,869	0	0
pÉÖãÉåí=êÉîÉåìÉë=			NRIOSS NRIVOO OPIQOM ONIMNP		VIMVN		RITTR ÓOIQNV ÓNIUSV			QRIPRU= QMIUQN=
Other operating income	1,910	1,786	1,853	1,461	574	659	–2,235	–2,076	2,102	1,830
Changes in inventories of work in progress	0	0	0	–11	0	16	0	0	0	5
Cost of purchased services		–1,353 –1,838	–2,800	–2,216	–887	–859	727	1,113	–4,313	–3,800
Cost of purchased materials	–1,263	–746	–1,503	–606	–3,407	–1,129	393	62	–5,780	–2,419
Personnel expenses			–10,520 –10,134 –12,978 –12,010		–3,122	–2,535	–97		–1 –26,717 –24,680
Depreciation and amortisation	–345	–342	–324	–295	–166	–159	–16	–15	–851	–811
Other operating expenses		–3,323 –3,785	–6,414	–6,077	–1,270	–1,327	3,352	2,411	–7,655	–8,778
léÉê~íáåÖ=êÉëìäí== ÄÉÑçêÉ=áåíÉêÉëíI=í~ñI= ÇÉéêÉÅá~íáçå=~åÇ= ~ãçêíáë~íáçå		TNT= NIOMR	NIRTU	NIRRQ	VTV	SMM	ÓOTV	ÓPSM	OIVVR=	OIVVV=
léÉê~íáåÖ=êÉëìäí= ÄÉÑçêÉ=ÇÉéêÉÅá~íáçå= ~åÇ=~ãçêíáë~íáçå= êÉëìäíáåÖ=Ñêçã= éìêÅÜ~ëÉ=éêáÅÉ= ~ääçÅ~íáçå=	PTO=	USP	NIORQ	NIORV	UNP	QQN	ÓOVR	ÓPTR	OINQQ=	OINUU=
Depreciation and amortisation resulting from purchase price allocation	–21	–47	–30	–92	0	–5	0	0	–51	–144
léÉê~íáåÖ=êÉëìäí=	PRN=	UNS	NIOOQ	NINST	UNP	QPS	ÓOVR	ÓPTR	OIMVP=	OIMQQ=
Interest income	256	–143	–175	–190	–155	–111	0	0	–74	–444
oÉëìäí=ÄÉÑçêÉ== áåÅçãÉ=í~ñÉë=	SMT=	STP	NIMQV	VTT	SRU	POR	ÓOVR	ÓPTR	OIMNV=	NISMM=
fåíÉêÉëí=áå=~ëëçÅá~íÉë= Å~êêáÉÇ=~í=Éèìáíó=	OTP=	NVP	M	M	NO	NR	M	M	OUR=	OMU=
pÉÖãÉåí=~ëëÉíë=					QVITRO= RVIMTV TTINQT TOIVVO RNIVTO QPITMN NNIOMO				OTU NVMIMTP=NTSIMRM=
pÉÖãÉåí=äá~ÄáäáíáÉë=					PMISTT= PMIPSQ RTIPSR QVIVOM NUITQP NSIMVO NMIVMU				SIMNT NNTISVP=NMOIPVP=
pÉÖãÉåí=áåîÉëíãÉåíë=		ONQ= NIROR	OMO	QMO	NSU	OMO	NMR	OTS	SUV=	OIQMR=

cáå~åÅá~ä=`~äÉåÇ~ê=

15 March 2013	Publication of Annual Result 2012
15 March 2013	Analyst Conference
29 April 2013	Report on the 1st Quarter of 2013
7 May 2013	Annual General Meeting
30 July 2013	Report on the 1st Six Months of 2013
29 October 2013	Report on the 3rd Quarter of 2013
11–13 November 2013	Analyst Presentation, German Equity Forum

vçìê=fåîÉëíçê=oÉä~íáçåë=Åçåí~Åí=éÉêëçåW=

Karsten Pierschke

Telephone:	+49 30 2801-2727
Fax:	+49 30 2801-1000
E-Mail:	kpierschke@psi.de

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For the latest IR information, please visit our website at www.psi.de/ir.

PSI Aktiengesellschaft für Produkte und Systeme der Informationstechnologie

Dircksenstraße 42-44 10178 Berlin Germany Telephone: +49 30 2801-0 Fax: +49 30 2801-1000 ir@psi.de www.psi.de