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FORTEC Elektronik AG

Quarterly Report May 31, 2007

161_10-q_2007-05-31_264a3ffe-5d1c-4979-ab1b-fb70c97ffa05.pdf

Quarterly Report

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9 – Months' Report 2006/2007

======================== July 01st, 2006 – 31st March, 2007

Content

  • Management Report
  • Consolidated Balance Sheet
  • Consolidated Income Statement
  • Cash Flow Statement
  • Statement of Capital Changes

FORTEC Elektronik AG Ph: +49(0)8191-91172-13 Fax: +49(0)8191-21770 Email: [email protected]

9 – Months' Report 2006/2007

July 01st, 2006 – 31st March, 2007

During third quarter of business year 2006/07 (01.01. - 31.03.2007), the achieved turnover amounting to 11.2 million EUR again confirmed the positive trend of the previous quarters of 10.9 million EUR in second quarter and 9.1 million EUR in first quarter. Due to a proper organic growth, turnover and profit were continuously increased.

Turnover of first nine months of business year 2006/07 again continued to rise to 31.3 million EUR (prev.year 30.6 million EUR). The profit before tax and interest (EBIT) increased to 1.905 million EUR compared to 1.866 million EUR in previous period. The period's profit amounted to 1.045 million EUR after 1.002 million EUR.

Within 9 months, the cash flow resulting from operative division was 3.2 million EUR.

The risks mentioned in detail in par. "Risk management" of the "Annual Management Report 2005/06" still exist to full extent. Especially the financial expenses continued to increase as concerns warranty and the blocking of unjustified customers' claims.

Due to the raise in capital in March 2007, the group received 3 million EUR. The number of shares and therefore, the total of voting rights increased from 2.700.000 to now 2.954.943.

The liquid assets as per March 31, 2007 amount to 5.4 million EUR.

Annexe.

The balancing and evaluation methods of fiscal year 2005/06 according to IAS/IFRS remain unchanged. The number of full-time employees amounts to 76 (prev. year 74). The product folio is marketed under the segment Embedded Solutions; therefore a segmential report devided into product groups is not necessary. In view of the 31 million EUR turnover in general, 25 million EUR were achieved nationally and 6 million EUR within Europe.

CONSOLIDATED BALANCE SHEET (uncertified) according to IAS/IFRS 31.03.2007 (last year's figures 30.06.2006)

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Consolidated Income Statement (uncertified) according to IAS/IFRS

01.07.06 – 31.03.2007 (last year's figures 01.07.05 - 31.03.06)

Income Statement GJ 2006/07 GJ 2005/06
Sales revenues 31.261.974€ 30.622.362€
Other operating income 579.213 € 1.061.307 €
Cost of material 23.968.083 € 23.906.524 €
Personnel expenses 3.637.256 € 3.608.354 €
Depreciation 231.811 € 256.549 €
Other operating expenses 2.099.158 € 2.045.792 €
Operating income (EBIT) 1.904.879 € 1.866.450 €
Other interests and similar income 52.913 € 18.182 €
Taxes on income and profit 912.331 882.057 €
Net income 1.045.461 € 1.002.575 €
Earning per share/ 9-months 0,38 € 0.37 €
Shares outstanding * 2.728.327 2.700.000

* average number of shares; adjusted split share of 1:3 in previous year

Consolidated Income Statement (uncertified) according to IAS/IFRS

01.01. – 31.03.2007 (last year's figures 01.01. - 31.03.2006)

Income Statement Q3 (1.01.-31.03.07) Q3 (1.01.-31.03.06)
Sales revenues 11.217.141€ 13.700.348€
Other operating income 35.643 € 39.311 €
Cost of material 8.530.977€ 10.965.562€
Personnel expenses 1.259.791 € 1.318.482 €
Depreciation 83.937 € 85.006 €
Other operating expenses 706.516 € 680.680 €
Operating income (EBIT) 671.563 € 689.929 €
Other interests and similar income 22.723€ ./. 5.472 €
Taxes on income and profit 404.332 € 375.384 €
Net income 289.954 € 309.073 €
Earning per share/3rd Quarter 0,10 € 0,11 €
Shares outstanding * 2.728.327 900.000

* average number of shares; adjusted split share of 1:3 in previous year

Consolidated Cash Flow Statement (uncertified) according to IAS/IFRS 01.07.06 - 31.03.2007 (last year's figures 01.07.05 - 31.03.06)

1. Operative Business FY 2006/07 FY 2005/06
Net income 1.045.461 1.002.575
Depreciation of tangible and intangible assets 231.811 256.549
Change of inventories - 445.625 - 172.916
Change in accounts receivable 3.033.471 -5.253.745
Change of liabilities - 271.852 3.103.282
Change of accruals - 341.657 193.816
Change of other assets - 6.111 3.485
Cash flow from operating business € 3.245.498 - 866.954
II. Investment Activities
Cash flow from investment activities € - 1.167.874 - 56.670
III. Financing Activities
Increase of capital stock 254.943 0
Increase of capital reserves 2.940.502 345.000
Profit distribution - 810.000 € - 810.000
VI. Cash flow in total 4.463.069 € -1.388.624
V. Change in Liquid Funds
Cash at the beginning of period 901.463 € 2.601.752
Cash at the end of period 5.364.532 € 1.213.128

Company Capital. (uncertified) according to IAS/IFRS

01.07.2006 - 31.03.2007 (last year's figures 01.07.2005 - 31.03.2006)

Capital Capital Development of reserves
Fiscal Year 2005 / 06 stock Reserves and accumulated profit TOTAL
Euro Euro Euro Euro
Balance 01.07.2005 2.700.000 5.359.522 5.504.740 13.564.262
Share option program 345.000 0 345.000
Payout dividends -810.000 -810.000
Period earning 1.002.575 1.002.575
Balance 31.03.2006 2.700.000 5.704.522 5.697.315 14.101.837
Not transferable
according to § 150 AktG 5.704.522
according to § 47 AktG 2.700.000
Fiscal Year 2006 / 07 Capital
stock
Euro
Capital
Reserves
Euro
Development of reserves
and accumulated profit
Euro
TOTAL
Euro
Balance 01.07.2006 2.700.000 5.654.522 6.311.822 14.666.344
Capital increase 254.943 2.738.002 2.992.945
Share option program 202.500 0 202.500
Payout dividends -810.000 -810.000
Period earning 1.045.461 1.045.461
Balance 31.03.2007 2.954.943 8.595.024 6.547.283 18.097.250
Not transferable
according to § 150 AktG
according to § 47 AktG
2.954.943 8.595.024

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