Realtech AG

Earnings Release • Mar 10, 2011

News Details

Ad-hoc | 10 March 2011 09:25

REALTECH AG: Provisional consolidated annual figures for 2010

REALTECH AG / Key word(s): Final Results

10.03.2011 09:25

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

*Group revenue up 8%
*17% increase in software revenue
*Consulting business up 5%
*70% increase in Group EBIT

Walldorf, March 10, 2011. According to provisional figures, REALTECH's
Group revenue in fiscal year 2010 rose 8% to EUR 52.5 million (2009: EUR
48.7 million). At EUR 13.7 million (EUR 11.7 million) software solutions
saw growth of 17%. The consulting business area reported a rise in revenues
of 5% to EUR 38.8 million (EUR 37.0 million).

It must be noted here that REALTECH AG sold its Italian subsidiary,
REALTECH Italia S.p.A, Agrate Brianza (Milan), on December 14, 2010 as part
of a management buy-out. In line with IFRS regulations, the Italian company
is being listed as 'Discontinued Operations' ('Aufgegebene
Geschäftsbereiche'). As a result, the figures for 2010 and 2009 are shown
excluding REALTECH Italia.

Earnings before interest, tax, depreciation, and amortization (EBITDA)
climbed by 81% to EUR 6.7 million (EUR 3.7 million), while EBIT rose by 70%
to EUR 4.4 million (EUR 2.6 million). The software business area directly
accounted for a 69% share of Group EBIT (previous year: 66%). Accordingly,
the consulting business area contributed a 31% share (previous year: 34%).

In contrast, if we take REALTECH Italia into account 'pro forma' as part of
the Group for the two years to be compared, EBITDA for fiscal year 2010 is
EUR 3.9 million (EUR 3.7 million) and EBIT is EUR 3.0 million (EUR 2.6
million).

At minus EUR 1.5 million (EUR 1.2 million) net income was greatly
influenced by the disposal of the Italian subsidiary. Accordingly, earnings
per share were minus EUR 0.27 (EUR 0.23).

Net cash and cash equivalents were EUR 6.4 million (EUR 6.6 million). Cash
flow rose to EUR 6.5 million (EUR 5.1 million).

4th quarter of 2010:
Group revenue rose by 25% to EUR 15.7 million (Q4/2009: EUR 12.5 million).
Software revenues climbed by 75% to EUR 5.7 million (EUR 3.2 million).
Consulting achieved growth of 8% to EUR 10.0 million (EUR 9.3 million).

EBITDA increased by 80% to EUR 3.8 million (EUR 2.1 million), while EBIT
rose by 50% to EUR 2.3 million (EUR 1.5 million). Net income was minus EUR
3.0 million (EUR 0.8 million), corresponding to earnings per share of minus
EUR 0.56 (EUR 0.15).

'We are satisfied with the way business has developed in 2010. However, the
general economic situation has made the year that has just past extremely
challenging. The fact that the company's performance is in line with and,
in some cases, even better than our forecast at the beginning of 2010 is
thanks to our highly dedicated employees,' explained Nicola Glowinski,
Chief Executive Officer of REALTECH AG. 'Back in 2009 we introduced
measures to reduce costs and we were able to reap the benefit of this in
2010.' Nicola Glowinski continued: 'Next year, too, we are planning to
continue to systematically focus our company's activities on economically
successful regions.

In 2011 we will concentrate our efforts in developing our core business,'
explained Glowinski. 'Both the more intensive development and sales
partnerships with SAP and the planned expansion of software products into
further regions demand renewed efforts and require additional financial
investment. However, profitable growth remains top priority and we will
clearly build on this in the next few years,' Nicola Glowinski concluded.

REALTECH AG's annual financial statements form the basis for a resolution
to be passed during the General Meeting on the appropriation of earnings.
REALTECH AG's net income was greatly influenced by the sale of the equity
investment in REALTECH Italia S. p. A. and the investments made with a view
to future growth.

REALTECH AG's retained earnings in the year under review were EUR 0
thousand, compared to EUR 3,016 thousand in 2009. To compensate for the
retained profits brought forward from the previous year and the net loss in
excess of this, EUR 2.742 thousand was withdrawn from the paid-in capital.
For this reason, the Executive and Supervisory Boards are not able to
propose a dividend at the General Meeting in Wiesloch on May 24, 2011.

REALTECH will be publishing its final consolidated financial statements for
2010 on April 6, 2011.

Contact person:
Volker Hensel
Investor Relations
REALTECH AG, 69190 Walldorf
Tel.: +49.6227.837.500
Fax: +49.6227.837.9134

10.03.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language: English
Company: REALTECH AG
Industriestraße 39c
69190 Walldorf
Deutschland
Phone: +49 (0)6227 837-500
Fax: +49 (0)6227 837 9134
E-mail: investors@realtech.com
Internet: www.realtech.com
ISIN: DE0007008906
WKN: 700890
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

---