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Realtech AG

Earnings Release Aug 5, 2010

347_10-q_2010-08-05_32d4298b-3bcc-4618-9f62-758624227ff3.pdf

Earnings Release

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Q 2 2010 Q2 2009 Q1+Q2 10 Q1+Q2 09
Revenues and income TEUR $\Delta$ % TEUR TEUR $\Delta$ % TEUR
Revenues
Revenues consulting 14.894 $\circ$ 14.917 29.252 (4) 30.612
Revenues software 12.025 $\circ$ 11.991 23.715 (6) 25.357
Revenues Germany 2.869 (2) 2.927 5.537 5 5.255
Revenues foreign countries 6.440 $\bf 8$ 5.990 12.723 $\overline{7}$ 11.934
Earnings before interest, taxes, depreciation and amortization (EBITDA) 8.454 (5) 8.927 16.529 (12) 18.678
Earnings before interest and taxes (EBIT) 528 (40) 875 827 1.715 46
Earnings before taxes (EBT) 209 (73) 774 231 214 (203)
Net income 365 (48) 704 494 294 (255)
Earnings per share (in EUR) 335 (64) 937 264 147 (566)
Investments and depreciation 0,06 (64) 0,18 O, O5 147 (0, 11)
Investments in intangible and tangible assets
Depreciation 228 138 96 395 21 326
Key figures 319 216 101 596 139 249
Gross margin (%)
EBITDA margin (%) 30,2 (14) 35,0 29,8 (7) 31,9
EBIT margin (%) 3,5 (40) 5,9 2,8 1.800 O,1
Cash flow from operating activities 1,4 (73) 5,2 O, 8 219 (0,7)
Cash flow from investing activities (164) (36) (120) 1.809 (30) 2.581
Cash flow from financing activities (244) (252) 161 (414) 1 (419)
(2.594) (2) (2.541) (2.471) $\overline{3}$ (2.541)
30.06.10
TEUR
30.06.09
Assets, shareholders' equity and liabilities (end of quarter) $\Delta$ % TEUR
Total assets 42.121
Non-current assets 14.052 (1) 42.412
Current assests 28.069 $\circ$ 14.047
Net cash and cash equivalents 6.227 (1) 28.364
Shareholders' equity 26.817 $\overline{2}$ 6.101
63,7 T 26.504
$\overline{2}$ 62,5
1,2 (63) 3,2
374 $\circ$
Equity ratio (%)
Return on equity (%)
Noncurrent liabilities
Current liabilities
Employees (end of quarter)
14.930
657
(4)
(6)
15.625
699

ŝ

$\sqrt{2}$

  • ◆ Cost management continuity results in improved EBIT in H1 despite downturn in revenues
  • Consolidated H1 revenues total EUR 29.3 million (EUR 30.6 million)
  • Software revenues up to EUR 5.5 million
  • Consulting revenue down to EUR 23.7 million
  • O Lower EBIT for the quarter
  • O Consolidated earnings continue to be positive

O Dear Shareholders and business partners

REALTECH was not able to escape global developments in the second quarter given the fact that the general global economy has not yet stabilized. Business over the course the fiscal year has been a challenge for our organization and, indeed, will remain so for the rest of the year. Our subsidiaries in Spain and Italy are worthy of particular mention: The overall economic developments and the changed economic conditions in their respective countries impacted these companies to a comparatively great extent. REATECH Spain was able to adjust its costs to the changed conditions relatively quickly, however REALTECH Italy was far less able to adapt, which is due in particular to the statutory framework. The activities put in place will thus have their full impact at the earliest at the start of the 2011 fiscal year (see ad-hoc disclosure dated July 8, 2010). In contrast, the German REALTECH companies in the consulting and software segments enjoyed positive growth, and grew year-on-year. However they are currently not able to compensate for the results in Spain and Italy.

The REALTECH Group succeeded in delivering positive operating results in Q2 thanks to the cost-cutting measures implemented earlier despite lower revenues during the second quarter than was the case the previous year.

Revenues in Q2 2010 were in line with the previous year at EUR 14,894 thousand (EUR 14,917 thousand). In terms of the first six months, however, revenues fell by 4 percent from EUR 30,612 thousand to EUR 29,252 thousand.

The two segments developed as follows: In Q2 revenues generated by the Software business were 2 percent down from EUR 2,927 thousand to EUR 2,869 thousand. In contrast, software revenues for the first six months were up 5 percent from

Revenues by Regions (millions EUR)

● Germany ● Rest of Europe ● Asia Pacific ● USA

Revenues, EBIT and Net Income (millions EUR)


EUR 5,255 thousand to EUR 5,537 thousand. The proportion of Group revenue generated by the software business was up from 17 percent to 19 percent.

Revenues in the Consulting segment were on a par with the previous year quarter-on-quarter at EUR 12,025 thousand (EUR 11,991 thousand). Revenue in the first half of 2010 - at EUR 23,715 thousand - was down 6 percent compared to the previous year (EUR 25,357 thousand).

Compared to the first six months of 2008, the proportion of group revenue generated by foreign business fell from 61 percent to 57 percent. The Rest of Europe region had to accept a 21 percent downturn from EUR 14,535 thousand to EUR 11,493 thousand as a result of the developments in Italy and Spain. This figure as a share of total revenue thus fell from 47 percent to 39 percent. In contrast, revenues in Germany increased again year-on-year: By 7 percent from EUR 11,934 thousand to EUR 12,723 thousand. They accounted for 43 percent of consolidated revenue (previous year: 39 percent). The USA generated revenues of EUR 1,583 thousand, which was 29 percent up on the previous year (EUR 1,229 thousand). This region's contribution towards Group revenue increased from 4 percent to 5 percent. In the Asia-Pacific region, too, revenues were higher than in the previous year. Having stood at EUR 2,915 thousand in the first half of 2009, revenues here increased 18 percent to EUR 3,453 thousand. This region contributed 12 percent of consolidated revenue (previous year: 10 percent).

C Earnings

Revenues in the second quarters of 2009 and 2010 were almost identical, however the costs of revenues in Q2/2010 was up 7 percent. With regard to the first six months, the cost of sales was reduced from EUR 20,845 thousand to EUR 20,529 thousand, or by 2 percent. In terms of revenues, this figure increased quarter-on-quarter from 65 percent to 70 percent and was up from 68 percent to 70 percent in a six-month comparison.

This development is reflected in the gross profit: Comparing the respective second quarters, this figure decreased from EUR 5,217 thousand to EUR 4,498 thousand, reducing the gross margin from 35 percent to 30 percent. The six-month period saw a decline from EUR 9,767 thousand to EUR 8,723 thousand, equivalent to a fall from 32 percent to 30 percent.

Taking a look at the gross profit on revenue in both segments over the first half of the year shows that this figure fell by 26 percent in the Consulting segment from EUR 5,265 thousand to EUR 3,890 thousand. Consequently, the gross margin fell from 20 percent to 16 percent. In the Software segment, the gross profit on revenue increased by 7 percent from EUR 4,503 thousand to EUR 4,823 thousand and the gross margin lifted from 80 percent to 87 percent.

Based on a comparison of quarters, selling and marketing expenses remained on a par with the previous year at EUR 2,094 thousand (EUR 2,082 thousand). Relative to revenue, the figure remained at 14 percent. This figure was also down by 11 percent compared the previous first six months

Contract Contract

of 2009, falling from EUR 4,571 thousand to EUR 4,067 thousand. Expenses fell from 15 percent to 14 percent of revenues.

Compared to Q2 2007, general and administrative expenses by 5 percent from EUR 1,561 thousand to EUR 1,490 thousand. These thus accounted for 10 percent, down slightly from 11 percent. Compared to the first six months of the previous year, expenses fell by 13 percent from EUR 3,453 thousand to EUR 3,011 thousand. Based on revenue, the figure fell from 11 percent to 10 percent.

Research and development expenses fell from EUR 948 thousand to EUR 826 thousand - a drop of 13 percent. Relative to revenue, the figure remained at 6 percent. Comparing the two sixmonth periods, expenses decreased by 15 percent from EUR 2,044 thousand to EUR 1,742 thousand, accounting for 6 percent of revenue in 2010 (2009: 7 percent).

The above facts meant that EBITDA and EBIT fell quarter-on-quarter: EBITDA was down 40 percent to EUR 528 thousand (previous year: EUR 875 thousand) and EBIT fell 73 percent to EUR 209 thousand (previous year: EUR 774 thousand). In contrast, both EBITDA and EBIT for the six-month period improved: EBITDA lifted from EUR 46 thousand to EUR 827 thousand and EBIT from EUR minus 203 thousand to EUR 231 thousand.

Net interest in the first six months of 2010 amounted to EUR 9 thousand (previous year: EUR 32 thousand). This downturn was due, in particular, to a further reduction in general interest rates.

Net income in the second quarter of this year declined by 64 percent to EUR 342 thousand (previous year: EUR 937 thousand), taking the earnings per share to EUR 0.06 (previous year: EUR 0.18). In contrast, the consolidated net income for the first six months of 2010 increased to EUR 264 thousand (previous year: EURminus 566 thousand) and earnings per share lifted to EUR 0.05 (previous year: EUR minus 0.11).

O Financial situation

The cash flow from operating activities after the first six months fell by 30 percent compared to the first half of 2009 (EUR 2,581 thousand) to EUR 1,809 thousand. This was due mostly to the increase in trade receivables by EUR 1,705 thousand despite the improved consolidated net income compared to the previous year.

In the first six months, the cash flow from investing activities was a cash outflow of EUR 414 thousand, compared to a cash outflow of EUR 419 thousand in the first six months of 2009. Investments in intangible assets and property, plant and equipment and financial investments amounted to EUR 405 thousand (previous year: EUR 344 thousand). This particularly involved procuring replacements.

The cash flow from financing activities in the period under review gave rise to a cash outflow of EUR 2,471 thousand, compared to EUR 2,541 thousand in the previous year. In each case, this was the result of the dividend of EUR 0.50 per share that was distributed in May for the previous fiscal year and the issue of convertible bonds.

O Assets

At EUR 42,121 thousand on June 30, 2010, total assets fell - a reduction of 2 percent when compared to December 31, 2009 (EUR 41,355 thousand).

Trade receivables on the reporting date amounted to EUR 19,695 thousand and were therefore 10 percent higher than the figure on December 31, 2009 (EUR 17,990 thousand). The increase in receivables with a simultaneous reduction in revenues is due, in particular, to longer maturities. As at June 30, 2010 trade receivables accounted for 47 percent of assets (December 31, 2009: 44 percent).

On June 30, 2009, the REALTECH Group had net cash and cash equivalents of EUR 6,101 thousand, compared to EUR 7,304 thousand on December 31, 2009 and EUR 28,016 thousand on June 30, 2009, representing 15 percent of assets (December 31, 2009: 18 percent).

Provisions were reduced in comparison to December 31, 2009 from EUR 5,683 thousand to EUR 4,649 thousand (down 18 percent), primarily due to the utilization of vacation provisions, as well as provisions for outstanding incoming invoices.

Shareholders' equity, which stood at EUR 26,817 thousand on June 30, 2010, was down 16 percent on the figure on 31.12.09 (EUR 28,566 thousand). This was due, in particular, to the dividend disbursed in May 2010 of EUR 2,668 thousand. The company's equity ratio amounted to 63.7 percent on June 30, 2010 and 69.1 percent on December 31, 2009.

C Employees

At the end of the second quarter of 2010, REAL-TECH had 657 employees worldwide - 6 percent less than on the same date the year before (699). A total of $232 - or 35$ percent – of these employees worked in Germany. Compared to the previous year 251 or 36 percent were employed in Germany. This figure is thus 8 percent lower than in the previous year.

The number of employees working at REALTECH companies in other countries fell 5 percent over the past year from 448 to 425. The figure in the Rest of Europe region fell by 6 percent from 375 to 351, whereas the number of employees on the balance sheet date in the USA increased slightly from 15 to 16. Employee figures remained constant in the Asia-Pacific region at 58.

Changes to employee numbers in the divisions were as follows on June 30: In the Consulting segment, the number of consultants fell by 5 percent from 488 to 464. There was also a reduction in Sales: The figure here fell by 8 percent from 76 to 70. The number of employees in administration was down 7 percent year on year at 68 (73). There were 40 developers, down 13 percent year-on-year (46). The number of product consulting employees remained practically unchanged at 15 (previous year: 16).

O Outlook

We can really be happy with the course of business in the REALTECH Group in 2010 to date. However this picture changes if we look at the year as a whole. The global economic crisis has hit REAL-TECH Spain and REALTECH Italy with a time lag, and is expected to lead to lower revenues and earnings than had been forecast at the start of the year.

Growth in the order book at REALTECH Spain is also lagging the forecast. The project situation continues to be excellent, however several customers have postponed orders. In spite of this, however, we can see that REALTECH Spain is

Employees by Regions

faring better than the Spanish economy. However, there are structural difficulties at REALTECH Italy. Fundamental reorganization is required at this company. The number of projects is substantially lower than had been forecast at the end of 2009 or at the start of 2010. In addition, we are being faced with lower daily rates for consulting.

At the same time, the OEM agreement concluded with SAP AG in July 2010 offers excellent perspectives for both the Consulting and Software segments. We believe that there will initially be higher costs in 2010 compared to the original forecast as a result of investments that are required, in particular for development, training and marketing.

We believe that this contract will result in initial revenues for REALTECH towards the end of 2011. We are forecasting the strongest positive impact on revenues and earnings directly from our software product business. In addition, we also believe that there will be positive growth in our consulting business and are forecasting an increasing number of projects for Technical Operations for the SAP Solution Manager.

Responsibility statement by the Executive Board

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the net assets, financial position and earnings of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Yours faithfully, REALTECH AG The Executive Board

O Note

REALTECH AG has prepared its (non-audited) quarterly and half-yearly financial statements in accordance with the accounting standards of the International Accounting Standards Board (IASB), i.e. the International Financial Reporting Standards (IFRS) as applicable in the EU. The IAS, IFRS, and corresponding interpretations of the International Financial Reporting Interpretations Committee (IFRIC - formerly SIC) applicable as of June 30, 2010 have been taken into account. The figures for the previous year were also determined based on the same standards.

The consolidation and valuation methods used to prepare the quarterly financial statements and establish the comparative figures for the previous year were basically the same as those used in the consolidated financial statement as of December 31, 2009. A detailed description of the individual methods is published in the notes of the 2009 annual report.

No matters of particular significance that may affect the company's income or circumstances that have affected business development are known other than those listed here.

OHighlights

REALT-

$T = C$ H

Shareholder meeting in 2010

On May 21, 2010, REALTECH AG held its eleventh regular General Meeting in Wiesloch. A good 200 shareholders and guests gathered in the Palatin convention center to hear about the future prospects for the company. Daniele Di Croce, Chairman of the Supervisory Board, opened the General Meeting and, after reading the usual formalities, handed over to the Chief Executive Officer. Nicola Glowinski.

He began by talking about the 2009 fiscal year, which was a very difficult chapter in REALTECH's history following the company's record performance in 2008. As far back as the end of 2008 it was very noticeable that the mood in the economy was becoming increasingly gloomy as a result of the global financial crisis. Although REALTECH generated lower revenues in the first quarter of 2010 than in the same quarter of 2009, Nicola Glowinski stressed that the company had managed to increase its profitability. This showed that structures had been successfully adapted to the changed environment and costs substantially reduced. In his view the market would stabilize in 2010. He also referred to industry surveys which showed investment confidence picking up somewhat in the IT sector. The Chief Executive Office assured the meeting that the company continued to monitor overall economic developments very closely and was ready to respond, if necessary, to any changes on the market.

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This was followed by a session in which the Executive and Supervisory Boards provided detailed answers to the questions posed by shareholders and their representatives from the German association for private investors (DSW) and the German association for the protection of shareholders' rights (SdK).

Before he moved on to the votes, the Chairman of the Supervisory Board, Daniel Di Crose, announced the proportion of shareholders who were represented at the General Meeting. He confirmed that EUR 2,584,408 out of the company's share capital of EUR 5,335,952 were represented, which is equivalent to 48.43 percent. All the Board's resolutions were passed, with only a few votes against and a small number of abstentions.

Individual votes were taken on the use of the net profit to pay a dividend of EUR 0.50 a share (Item 2), formal approval of the actions of the Executive Board (Item 3) and Supervisory Board (Item 4), endorsement of the system for remunerating members of Executive Board (Item 5), the appointment of PKF Deustchland GmbH as auditor and Group auditors for the 2010 fiscal year (Item 6), generating new authorized capital (Item 7), authorization to procure and use treasury shares (Item 8) and on amendments to the articles association to make the voting procedure at the Annual General Meeting more flexible (Item 9).

REALTECH is one of the finalists in the SAP Pinnacle Awards 2010 for the "Run SAP Partner of the Year" category

In May, REALTECH was nominated for the "Run SAP Partner of the Year" category of the SAP Pinnacle Award for the first time. SAP AG recognizes the extraordinary services of its partners throughout the world with this distinction.

SAP Pinnacle SAP Pinnacle 2010 SAP Pinnacle 2010

EINALIST

FINALIST

FINALIST

10 11 12 13 14 15 16

REALTECI

The SAP Pinnacle Awards are awarded for a total of 28 categories and are the highest distinctions that an SAP partner can achieve. This year, the "Run SAP Partner of the Year" award will be presented for the first time

The decisive factor for nomination in this category is a large number of successful projects which are completed with the aid of the Run SAP method and thus using the standard tool Sap Solution Manager. Another important consideration for the assessment is how successful cooperation with SAP Active Global Support has been.

"The nomination for this SAP Pinnacle Award is an honor for us. Since its founding in 1994, REAL-TECH has had a close partnership with SAP. This year's nomination illustrates the increasing importance of this partnership and recognizes REALTECH as one of the key players when it comes to SAP technology, SAP Netweaver and SAP operations," said Nicola Glowinski, CEO of REALTECH AG.

REALTECH were able to create a link between Run SAP and the ASAP method and to present the concept behind Run SAP to customers in an understandable manner. According to REALTECH, there are two perspectives. ASAP represents the business viewpoint while Run SAP is dedicated to operation.

The Run SAP method involves a standardized procedure for introducing and operating SAP applications and focuses on efficient application lifestyle management. Core components include efficient application management and smooth implementation of business processes. The main support tool is SAP Solution Manager, which contains a selection of software tools, predefined processes and best practices put together by SAP.

FINALIST

SAP Pinnacle SAP Pinnacle 2010

FINALIS

9 Sapphire Now 2010

On May 17, SAPPHIRE NOW 2010, the largest SAP inhouse show, kicked off at the Frankfurt trade fair. The software company from Walldorf, Germany, anticipated around 16,000 participants at this year's conference.

On the three days of the event, from May 17 to 19. SAP provided information on current SAP developments at more than 200 demo stands with more than 1,200 presentations and top-class guest speakers.

At Sapphire Now 2010, which simultaneously took place in Orlando, USA and Frankfurt am Main, Germany, the two new SAP CEOs Bill MacDermott and Jim Hagemann Snabe presented Europe's largest software manufacturer's revised strategy. SAP used the most up-to-date communication technology and social-media platforms to allow visitors to exchange information with SAP customers, partners and experts at both sites.

SAP's agenda covered the topics "Processes in real time", "Mobility" and "Sustainability". Even though the new strategies are based on the three pillars; "on premises" (classic in-house applications), "on demand" (business by design, cloud) and "on device" (mobile), SAP's focus is still on business applications.

REALTECH had its own stand at this year's event with the motto Simplify business processes and simplify your business technology. The product launch of theGuard! ChangePilot, a software for controlled steering of change processes in SAP applications, generated increased interest.

SAP SAPPHIRENOW EXT SAPPHIRENOW

SAP SAPPHIRE

O Shares

Share performance and market capitalization

At the beginning of the second quarter of 2010, REALTECH shares were listed at a value of EUR 8.25 and, shortly afterwards, achieved the highest value of the quarter under review at EUR 8.59 on April 7. Over the following two weeks, the listed value fell slightly and had slid to EUR 8.20 on the day of the shareholder meeting (May 21). Primarily as a result of the agreed dividend of EUR 0.50, the share price was listed as EUR 7.26 on the following day. In the last five weeks of the second quarter of 2010, the value of REAL-TECH shares fluctuated between EUR 7.72 and EUR 7.02. The lowest price in this three month period was EUR 6.80 on June 30, 2010. On June 30, 2010, the company's market capitalization stood at EUR 36 million, corresponding to 135 percent of book equity.

Shareholder structure and volume of trade in REALTECH shares

The shareholder structure of REALTECH AG did not change from the first to the second quarter of 2010. As the number of REALTECH shares increased by 17,500 from Q1 to Q2, the respective holding levels changed slightly. The main shareholders continued to hold the same number of shares. On June 30, 2010, the free float amounted to 38.62 percent.

On average, around 5,349 REALTECH shares were traded every day during the second quarter of $2010 - 41$ percent less than during the same quarter in the previous year (9,110). 67 percent of the shares were traded in Xetra (previous year: 78 percent), while 33 percent were traded on the other stock exchanges (previous year: 22 percent).

Spiel

Shareholder Structure as of 30.06.2010

REALTECH Basics Prime Standard Market segment 26. April 1999 Date of Issue 700 890 Security Identification no. RTC Exchange ID 54,00 EUR Issue price • Shares and share options held by the issuer and the company's executive bodies as of June 30, 2010 Issuer - shares REALTECH AG Executive Board 34.000 shares, Dr. Rudolf Caspary 35.000 stock options 24.000 shares, Nicola Glowinski 70.000 stock options Supervisory board 885.500 shares Daniele Di Croce 765.500 shares Rainer Schmidt 745.500 shares Peter Stier Key figures Q222010 Q22009 EUR EUR $O, 18$ $0,06$ Earnings per share $(0, 01)$ Cash flow per share $(0, 03)$ $5,01$ Shareholders' equity per share $5,03$ $7,44$ 8,59

Wednesday, June 30, 2010

cutcksspiel kann süchtig machen. Nähere Informationen unter www.lotto.de. H

Highest share price $6,80$ $5,50$ Lowest share price 6.80 $6,30$ Share price at the end of quarter Market capitalization at the end of quarter 36 Mio. 33 Mio. Number of shares at the end of quarter 5.335.952 5.289.452

O Consolidated Balance Sheets

Non-current assets
Intangible assets
Concessions, industrial rights and similar rights and assets
607.520
4.335.679
Goodwill
4.335.679
4.943.199
4.977.997
Tangible assets
7.462.665
Property, plant and equipment
7.333.186
Technical equipment and machines
47.267
1.460.409
Other equipment and office equipment
1.332.597
8.975.492
8.713.050
Financial assets
Other financial assets
162.145
Deferred tax assets
233.861
14.316.392
14.052.255
Current assets
642.318
52.418
145.256
217.647
Receivables and other assets
17.989.512
19.694.633
Trade receivables
330.760
Income tax receivables
511.149
828.151
Other financial assets
541.160
988.246
Other assets
692.556
21.841.790
19.734.377
6.227.121
Cash and cash equivalents
7.303.952
28.068.911
27.038.329
Total assets
42.121.166
41.354.721
SHAREHOLDERS' EQUITY AND LIABILITIES 30.06.2010
EUR
31.12.2009
EUR
Shareholders' equity
Subscribed capital 5.335.952 5.295.952
Additional paid-in capital 13.652.709 13.455.889
Other comprehensive income 424.896 126.354
Retained earnings 6.504.633 8.908.687
25.918.190 27.786.882
Non-controlling interests 898.717 778.776
26.816.907 28.565.658
Non-current liabilities
Deferred tax liabilities 374.251 383.687
Current liabilities
Trade accounts payable 1.990.482 1.925.525
Income tax payable 294.487 445.330
Provisions 4.649.040 5.682.514
Other financial liabilities 2.348.195 50.567
Other liabilities 5.647.804 4.301.440
14.930.008 12.405.376
Total shareholders' equity and liabilities 42.121.166 41.354.721

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CONTRACTOR

O Consolidated Statements of Income

Q 2 2010 Q2 2009 Q1+Q2 10 Q1+Q2 09
EUR EUR EUR EUR
Revenues 14.893.517 14.917.425 29.251.814 30.612.048
Costs of revenues 10.396.072 9.700.142 20.528.949 20.844.782
Gross profit 4.497.445 5.217.283 8.722.865 9.767.266
Selling and marketing expenses 2.093.991 2.082.204 4.067.065 4.571.086
General and administrative expenses 1.489.641 1.561.413 3.010.550 3.452.594
Research and development expenses 826.344 947.931 1.741.506 2.044.009
Other operating expenses 272.643 310.375 576.702 838.353
Other operating income 394.439 458.514 904.257 935.292
Operating income 209.265 773.874 231.299 (203.484)
Net interest 5.602 14.151 9.071 31.665
Income from financial assets and securities $\circ$ (81.770) $\circ$ (81.770)
Foreign currency exchange gains/(loss) 150.593 (2.178) 253.766 (1.393)
Income before taxes and minority interests 365.460 704.077 494.136 (254.982)
Income taxes 50.843 238.988 250.253 288.648
Income before minority interests 314.617 943.065 243.883 (543.630)
Minority interests 27.410 (6.181) 20.039 (22.417)
Net income 342.027 936.884 263.922 (566.047)
Income from financial instruments available for sale $\circ$ 231.471 $\circ$ 479.130
Cumulative translation adjustments 202.042 (65.289) 298.542 (77.402)
Comprehensive Income 544.069 1.103.066 562.464 (164.319)
Accumulated profit/loss carried forward 8.908.687 10.349.783
Dividend payment 2.667.976 2.630.226
Retained earnings 6.504.633 7.153.510
Average number of shares outstanding - basic 0,06 0,18 O, O5 (0, 11)
Average number of shares outstanding - diluted 0,06 O,17 O, O5 (0, 10)
Earnings per share - basic 5.315.952 5.274.952 5.315.952 5.274.952
Earnings per share - diluted 5.538.902 5.540.052 5.538.902 5.540.052

O Segment Reporting

POITO
EUR
TV1+Q2T09
EUR
Consulting
Revenues 23.714.547 25.356.793
Costs of revenues 19.814.919 20.092.304
Gross profit 3.899.628 5.264.489
Software
Revenues 5.537.266 5.255.255
Costs of revenues 714.030 752.478
Gross profit 4.823.237 4.502.777

Consolidated Statements of Cash Flows

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Q1+Q2 10
EUR
$Q1+Q2$ 09
EUR
Net income 263.922 (566.047)
Depreciation of fixed assets 596.065 249.056
Change in asset disposals 89.392 75.078
Change in convertible bonds (personnel expenses) 40.000 29.000
Other change in shareholders' equity and in minority interests 418.485 353.831
Change in income tax payable (52.003) (31.648)
Payment for income taxes (98.840) (492.841)
Change in provisions (1.033.475) (2.395.672)
Change in trade receivables (1.705.121) 4.633.907
Change in other assets (418.509) (881.343)
Change in trade accounts payable and in other current liabilities 3.699.513 1.576.471
Proceeds from interests 17.593 53.218
Payment for interests (8.521) (21.554)
Cash flow from operating activities 1.808.500 2.581.457
Purchase of intangible assets (90.038) (297.711)
Purchase of tangible assets (304.698) (27.901)
Investment in financial assets (10.369) (18.164)
Change in current securities (9.071) (75.577)
Cash flow from investing activities (414.176) (419.353)
Change in dividends (2.667.976) (2.630.226)
Change in convertibles bonds 196.820 89.660
Cash flow from financing activities (2.471.156) (2.540.566)
Change in cash and cash equivalents (1.076.832) (378.462)
Cash and cash equivalents at beginnig of the period 7.303.952 5.317.207
Cash and cash equivalents at end of the period 6.227.121 4.938.745

Consolidated Statements of Changes
in Shareholders' Equity

PI+Q2 10
EUR
TVI+V2T09
EUR
Shareholders' equity as of January 1 28.565.658 29.225.666
Change in subscribed capital 40.000 29.000
Net income 263.922 (566.047)
Unrealized profit/loss from securities translations $\circ$ 479.130
Translation adjustments 298.542 14.144
Dividend payment (2.667.976) (2.630.226)
Execution of stock options and convertible bonds 196.820 $\Omega$
Non-controlling interests 119.941 (47.897)
Shareholders' equity as of June 30 26.816.907 26.503.770

O Financial Calendar 2010 | 2011

November 04, 2010 Quarterly Report 3 2010
• November 23, 2010 Deutsches Eigenkapitalforum, Frankfurt
O March 31, 2011 Annual Report 2010
C May 05, 2011 Quarterly Report 1 2011
C May 24, 2011 Annual General Meeting, Palatin, Wiesloch, 10.00 a
August 04, 2011 Quarterly Report 2 2011
• November 03, 2011 Quarterly Report 3 2011

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Tel.: +49.6227.837.500 Fax.: +49.6227.837.292

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