ATOSS customer HUK-COBURG

ATOSS Quarterly Report 02.2013

Letter to Shareholders

Andreas F.J. Obereder and Christof Leiber Board of Management, ATOSS Software AG

Dear Shareholders, Ladies and Gentlemen,

In the first half of 2013, ATOSS Software AG has continued to record the pattern of growth achieved in the preceding years. Once again we have demonstrated the high degree of stability of our business model in an economically challenging environment. Workforce management continues to become ever more relevant. There are no signs that this trend is ending, quite to the contrary. The challenges facing the world of personnel management, now and in the future, serve only to stimulate this development still further. If businesses are to succeed in times of change, it is critical that they operate flexibly, proactively, adaptively and with initiative.

Precisely here lies the key to the success of ATOSS. Our workforce management software ensures that companies have the ability to collate relevant information. Our solutions identify the demand for staffing, simulate scenarios and prepare deployment schedules that take all the respective requirements into account. At the same time, our software also facilitates the analysis and preparation of data covering all aspects of workforce management in the form of business intelligence. In this way, the results delivered ensure that our customer benefit from the continuous optimization of working hours, not least in consideration of ergonomic and health criteria.

Once again in the first half of this year, this high level of functionality and the user benefits that companies experience very rapidly after implementation have attracted numerous new and follow-up orders, with the result that orders received for software licences are significantly up on the year before. The relevance of workforce management is being perceived across a broad range of sectors. However it is in the retail, healthcare as well in manufacturing and logistics sector that we have experienced the greatest willingness to invest in our customized solutions. We regard the success we have achieved as an endorsement of our corporate strategy, and we are planning customized solutions for other sectors.

Technology: Significance and trends

Investment in research & development is both a tradition and a paramount priority at ATOSS. We believe that our customers are entitled to expect products that offer maximum performance. In turn, this philosophy has earned us a competitive advantage which we intend to maintain and expand under all circumstances. In the past half-year we have increased our expenditure as planned in this field, as well as in the field of sales and marketing. These investments form the basis for future growth and safeguard the future of ATOSS.

Thanks to the technological advances of recent years, information and communication are now no longer dependent on time or space. Worldwide, around 35 percent of all employees have mobile links with the world of work – and the share is rising. In the hard-fought contest for skilled labor, a modern system of values increasingly demands the introduction of flexible working patterns. Companies in turn are compelled to accommodate these developments in structuring their own employment organization. Mobile applications and mobile terminal devices must be integrated into business processes – there is simply no alternative. For us at ATOSS, this issue is therefore high on the agenda. In the recent past we have made major progress, and we are working specifically to refine and optimize these advances.

The pattern of record growth that has been sustained for seven years and which was once again evident in the development of our business operations in the first half of 2013 shows that we hold the answers to urgent issues and questions. We therefore expect – also on the basis of the excellent order intake for software licences in the first half-year – to see a continuing positive trend in sales and operating profits in the year as a whole, with an EBIT margin securely above 20 percent.

Yours sincerely,

Andreas F.J. Obereder Christof Leiber Chairman of the Management Board/CEO Member of the Management Board

ATOSS customer GKN Driveline

Facts Overview

Economic background

The German Institute for Economic Research (DIW Berlin) economic barometer shows continuing growth of 0.5 percent or more in the second quarter relative to Q1
The current BITKOM (the trade association for the IT, telecoms and new media industries) sector barometer indicates positive full-year business expectations

ATOSS Software AG

Strong order intake for software licences in the first half underscores the topicality and future relevance of workforce management
Development in sales and operating earnings remains positive as before

	01.01.2013 - 30.06.2013	Proportion of total sales	01.01.2012 - 30.06.2012	Proportion of total sales	Veränderung 2013 zu 2012
Sales	17,531	100%	16,273	100%	8%
Software	10,860	62%	9,874	61%	10%
Licenses	3,794	22%	3,401	21%	12%
Maintenance	7,066	40%	6,473	40%	9%
Consulting	4,422	25%	4,486	28%	-1%
Hardware	1,462	8%	1,212	7%	21%
Others	787	5%	701	4%	12%

EBITDA	4,540	26%	4,312	26%	5%
EBIT	4,256	24%	4,037	25%	5%
EBT	429	2%	4,473	27%	-90%
Net income	426	2%	3,012	19%	-86%
Cash flow	2,790	16%	2,157	13%	29%
Liquidity (1/2)	10,418		24,615		-58%
EPS (in EUR)	0.11		0.76		-86%
Employees (3)	280		266		5%

CONSOLIDATED OVERVIEW AS PER IFRS: HALF-YEARLY COMPARISON IN TEUR

CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN TEUR

Q2/13	Q1/13	Q4/12	Q3/12	Q2/12
8,840	8,691	8,490	8,242	8,437
5,585	5,275	5,292	4,977	5,017
2,025	1,769	1,931	1,655	1,745
3,560	3,506	3,361	3,322	3,272
2,264	2,158	2,182	2,048	2,248
569	893	600	851	665
422	365	416	366	507

2,322	2,218	1,851	2,028	2,207
2,186	2,070	1,702	1,881	2,070
25%	24%	20%	23%	25%
-1,968	2,397	1,772	2,283	2,147
-1,307	1,733	1,197	1,551	1,465
297	2,493	-1,945	3,143	-1,001
10,418	24,370	25,444	28,657	24,615
-0.33	0.44	0.30	0.39	0.37
280	279	276	270	266

(1): Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) adjusted to exclude borrowings (loans) as of the qualifying date

(2): Dividend of EUR 0.71 per share on 23.04.2012 (TEUR 2,823) and EUR 3.62 on 29.04.2013 (TEUR 14,395)

(3): End of quarter / half-year

Investor Relations

Share price movement: Q1/2007 – Q2/2013

CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN EUR

		2013			2012
	Q2/13	Q1/13	Q4/12	Q3/12	Q2/12
Highest price	34.10	36.30	21.25	22.04	22.80
Lowest price	24.05	20.76	19.00	19.11	18.76
Share price at end of quarter	24.84	33.80	20.75	21.00	19.84
Dividend paid per share (2)	3.62	0.00	0.00	0.00	0.71
Cash flow per share	0.07	0.63	-0.49	0.79	-0.25
Liquidity per share (1/2)	2.62	6.13	6.40	7.21	6.19
EPS (undiluted)	-0.33	0.44	0.30	0.39	0.37
EPS (diluted)	-0.33	0.44	0.30	0.39	0.37

(1): Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) adjusted to exclude borrowings (loans) as of the qualifying date

(2): Dividend of EUR 0.71 per share on 23.04.2012 (TEUR 2,823) and EUR 3.62 on 29.04.2013 (TEUR 14,395)

Share price development and dividend policy favor a longterm commitment

In the first quarter of 2013, ATOSS stock peaked at a new record high of EUR 36.30. Following the annual general meeting at the end of April and the subsequent payment of the dividend and special distribution, the stock price declined to stand at EUR 24.84 at the end of June. Nevertheless, ATOSS shares ended the first half at a higher level than before the distribution was announced. From this perspective ATOSS out-performed its relevant benchmark, the Daxsubsector Performance Index. A long-term comparison reveals this trend with particular clarity. Over the period from 2007 to the end of H1 2013 ATOSS shareholders saw the price of their shares climb 138 percent, whereas the Daxsubsector Performance Index over the same period put on just 57 percent.

Each year, provided that it is a position to do so, ATOSS Software AG distributes around 50 percent of its earnings per share to its shareholders. The company has consistently pursued this transparent policy since 2003. In addition, special distributions have also been paid, as for financial year 2012. In total, long-term holders of ATOSS shares have in ten years received EUR 14.79 in dividends per share.

DIVIDEND AND SPECIAL DISTRIBUTION (EUR)

Analysts stand by strong operating forecast

Following publication of the provisional quarterly figures, analysts at Warburg Research awarded ATOSS Software AG a positive rating in recognition of the marked increase in sales and strong development at an operating level. Financial earnings were depressed due to the negative development in the gold price, which, however, was considered to have only minor influence over the company's fair value. In particular, the analysts stressed the strong intake of orders for software licenses which on the qualifying date of June 30, 2013 were up by 27 percent relative to the preceding year. Given that the share price - triggered by the announcement of a special distribution, rose above EUR 36.00 intermediately before undergoing a marked correction following the annual general meeting on April 26, 2013 as well as in view of the strong developments at an operating level, analysts lifted their stock rating to Hold, with an upside target of EUR 25.50.

Further information: www.atoss.com

Group Management Report

1. Business and conditions: German economy puts in modest growth

Following a weak winter half-year, the economic forecasts by both the ifo Institute and the DIW point to a modest upturn in the German economy in the course of 2013. In the first quarter of 2013 real gross domestic product increased by just 0.1 percent, following on from a decline in macroeconomic output of 0.7 percent. Accordingly to the DIW economic forecast for Q2, the German economy is expected to have grown by a modest 0.5 percent. The manufacturing sector was the prime mover in this expansion, powered by buoyant export demand. With a look to the year as a whole the ifo Institute forecasts economic growth of 0.6 percent.

Based on the results of the ifo Business Survey, an economic revival would seem probable. Business expectations among manufacturers are generally positive. The volatility of the business climate index in the course of the year to date, however, points to a continuing high degree of uncertainty with regard to the development of the European debt crisis.

In counterpoint to the expectations for the economy as a whole, the high-tech sector takes a more optimistic view of 2013. According to the business survey conducted by trade association BITKOM, the overwhelming majority of German ICT companies continue to take a positive view of their current prospects, although the level of confidence is somewhat weaker. In the first half of 2013 the majority of companies surveyed recorded rising sales, though earnings lagged behind expectations. Nevertheless, these companies are optimistic in their assessment of their business prospects for 2013 as a whole, with 68 percent expecting growth in sales. The trade association BITKOM forecasts growth of 4.6 percent for the software market in 2013 (previous year: 5.1 percent).

The development both in the economy as a whole and in the IT environment notwithstanding, in the first six months ATOSS recorded strong business with sales up 8 percent and a 5 percent increase in operating profits (EBIT), also after taking investments, particularly in sales and marketing and development into account. The company achieved sales growth of 10 percent in its core software business, while orders on hand for software licences at EUR 3.6 million were well up on last year's figure of EUR 2.7 million.

2. Earnings position: Further record sales and earnings

In the first six months of the 2013 financial year ATOSS recorded sales up 8 percent at EUR 17.5 million (previous year: EUR 16.3 million). In our core software business, sales climbed 10 percent from EUR 9.9 million to EUR 10.9 million, while sales of software licenses advanced by 12 percent from EUR 3.4 to EUR 3.8 million. Software maintenance, too, continued to develop positively with turnover increasing by 9 percent from EUR 6.5 million to EUR 7.1 million. As of June 30, consulting sales stood at EUR 4.4 million (previous year: EUR 4.5 million).

The operating profit (EBIT) was 5 percent higher than in the previous year, rising from EUR 4.0 million to EUR 4.3 million.

However, earnings before taxes (EBT) in the reporting period slipped to EUR 0.4 million (previous year: EUR 4.5 million), due essentially to negative financial earnings of EUR -3.8 million as a result of gold price developments.

Earnings after tax at the end of June 2013 amounted to EUR 0.4 (previous year: EUR 3.0 million), equating to earnings per share of EUR 0.11 (previous year: EUR 0.76). Orders received for software licenses as of June 30, 2013 amounted to EUR 3.6 million (previous year: EUR 2.8 million). Orders on hand for software licenses at the end of June stood at EUR 3.6 million, well above last year's high level of EUR 2.7 million and providing an excellent starting point for the rest of the current financial year.

3. Net assets and financial position

In the first six months, cash flow from operations amounted to EUR 2.8 million (previous year: EUR 2.2 million). Cash and cash equivalents including borrowings were down from EUR 12.8 million to EUR 3.4 million. Liquidity comprising cash and other current and non-current financial assets, after adjusting for borrowed funds such as loans, dropped from EUR 24.6 million to EUR 10.4 million. Liquidity per share on June 30 including these other current and non-current financial assets and adjusted for borrowed funds stood at EUR 2.62 (previous year: EUR 6.19).

The decline in liquidity relative to the year before is essentially attributable to the dividend payment which was some EUR 11.6 million higher at EUR 14.4 million, a valuation allowance against the company's gold holdings and losses on the disposal of gold of EUR 4.0 and an increase in cash flow from operations which rose from EUR 0.6 last year to EUR 2.8 million.

In addition to net earnings of EUR 0.4 million, the EUR 2.8 million in cash flow from operations was also boosted by the net effects of the disposal and valuation of financial assets available for sale in the amount of EUR 3.6 million and an increase in deferred revenues of EUR 1.3 million. Cash flow was by contrast reduced primarily by a reduction in other current liabilities in the amount of EUR 0.7 million and an increase in trade receivables and other current non-financial assets of EUR 1.7 million.

As of June 30, 2013 ATOSS reported an equity ratio following the special distribution of EUR 2.90 per share of 43 percent (previous year: 68 percent). The company thereby remains extremely well capitalized, with solvency assured at all times.

4. Product development

A high level of expenditure on research & development remains an important component of the ATOSS growth strategy with the goal of further extending the company's strong position as a technological leader in workforce management. Research and development costs in the first six months rose by 6 percent relative to the year before to stand at EUR 3.8 million (previous year: EUR 3.6 million). R&D costs as a proportion of overall sales amounted to 21 percent (previous year 22 percent).

The company continues to refrain from capitalizing the expense of developing new products. All expenditure for this purpose is recognized in the income statement in the period in which it is incurred.

5. Employees

The number of employees has risen from 266 last year to 280. On June 30, 2013 ATOSS employed 124 developers (previous year: 118), with a further 71 staff employed in consulting (previous year: 69), 43 in sales and marketing (previous year: 39) and 42 in administration (previous year: 40).

As of June 30, personnel costs for the current financial year amounted to EUR 8.3 million (previous year: EUR 8.1 million).

6. Risks associated with future development

There has been no material change in the company's risk structure relative to the description contained in the consolidated financial statements to December 31, 2012.

As a result of the sale of equities in March 2013 and the commitment to dispose of 161 of the gold bars held by the company which was effected on July 3, 2013, the market risk associated with financial assets available for sale, being the gold holdings, has reduced at fair value as of June 30, 2013 to EUR 5.1 million. The market risk associated with financial assets available for sale (gold) is dependent on the movement in the gold price.

7. Events after the closing date

The transaction entered into on June 27, 2013 for the sale of 161 gold bars (purchase price: EUR 6.7 million) was completed on July 3, with the proceeds of the sale amounting to EUR 4.9 million. The resulting effects on earnings have been allowed for as of June 30, 2013.

In addition on July 15, 2013 the company also repaid the sum of EUR 3.0 million in liabilities resulting from a bank loan.

There have been no further reportable events of particular significance since June 30, 2013

8. Outlook

In the first six months of the current financial year 2013 ATOSS has recorded strong development in sales and earnings. In view of this development and in consideration of the high level of orders on hand for software licenses, despite further scheduled investments, particularly in developing new markets, and a continuing high level of expenditure on research & development amounting to around one fifth of sales, the Management Board continues to expect moderate sales growth in the current financial year with an EBIT margin in excess of 20 percent.

CONSOLIDATED BAL ANCE SHEET TO 30.06.2013

Assets (EUR)	30.06.2013	31.12.2012
Non-current assets
Property, plant and equipment	2,651,395	2,764,873
Intangible Assets	127,349	141,602
Other financial assets	425,240	576,610
Deferred taxes	295,879	282,655
Total non-current assets	3,499,863	3,765,740
Current assets
Inventories	8,164	8,667
Trade account receivables	4,381,470	3,231,374
Other financial assets	9,564,299	16,008,437
Other non-financial assets	1,876,966	1,356,572
Cash and cash equivalents	3,428,617	8,859,080
Total current assets	19,259,516	29,464,130
Total assets	22,759,379	33,229,870

Equity and Liabilities (EUR)	30.06.2013	31.12.2012
Equity
Subscribed capital	3,976,568	3,976,568
Capital reserve	-661,338	-661,338
Equity deriving from unrealized profits/losses	15,253	-148,944
Unappropriated net income	6,552,814	20,522,139
Total equity	9,883,297	23,688,425
Non-current liabilities
Pension provisions	1,688,149	1,671,085
Deferred taxes	332,829	459,426
Total non-current liabilities	2,020,978	2,130,511
Current liabilities
Trade account payables	249,212	354,903
Other financial liabilities	3,000,000	0
Other liabilities	3,895,564	4,597,789
Deferred revenues	3,573,016	2,281,999
Tax provisions	48,312	87,243
Other provisions	89,000	89,000
Total current liabilities	10,855,104	7,410,934
Total equity and liabilities	22,759,379	33,229,870

CONSOLIDATED INCOME STATEMENT FROM 01.01. TO 30.06.2013

EUR		Quarterly Report		6-M onths Report
	01.04.2013 - 30.06.2013	01.04.2012 - 30.06.2012	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Sales	8,839,865	8,437,124	17,530,792	16,273,294
Cost of sales	-2,359,385	-2,489,295	-4,821,667	-4,714,644
Gross profit on sales	6,480,480	5,947,829	12,709,125	11,558,650
Selling costs	-1,552,982	-1,374,992	-3,004,800	-2,585,030
Administration costs	-837,567	-705,372	-1,681,855	1,400,022
Research and development costs	-1,928,108	-1,803,060	-3,755,408	-3,556,582
Other operating income	4,610	7,474	12,226	48,879
Other operating expenses	19,330	-2,011	-23,208	-29,231
Operating profit (EBIT)	2,185,763	2,069,868	4,256,080	4,036,664
Interest and similar income	12,694	150,415	424,548	659,744
Interest and similar expenses	-4,166,450	-73,605	-4,251,286	-223,516
Earnings before taxes (EBT)	-1,967,993	2,146,678	429,342	4,472,892
Taxes on income and earnings	660,570	-682,115	-3,491	-1,461,185
Net earnings	-1,307,423	1,464,563	425,851	3,011,707
Earnings per share (undiluted)	-0.33	0.37	0.11	0.76
Earnings per share (diluted)	-0.33	0.37	0.11	0.76
Average number of shares in circulation (undiluted)	3,976,568	3,976,568	3,976,568	3,976,568
Average number of shares in circulation (diluted)	3,976,568	3,976,568	3,976,568	3,976,568

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 01.01. TO 30.06.2013

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Net earnings	425,851	3,011,707
Components not reallocated in profit and loss
Profits/losses recognized in equity on the disposal of financial assets available for sale	503,533	0
Effects of taxes on income	-225,808	0
	277,725	0
Components reallocated in profit and loss
Profits/losses recognized in equity on the disposal of financial assets available for sale	-151,370	104,143
Effects of taxes on income	37,842	6,820
	-113,528	110,963
Other income for the period after taxes	164,197	110,963
Comprehensive income after taxes	590,048	3,122,670

CONSOLIDATED CASH FLOW STATEMENT FROM 01.01. TO 30.06.2013

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Business operations
Net earnings	425,851	3,011,707
Depreciation of fixed assets	283,816	275,105
Gains/Losses from the disposal of fixed assets	0	370
Gains/Losses from the disposal/valuation of financial assets available for sale	3,634,283	-434,796
Other income financial investment assets	-17,186	-70,531
Changes in deferred taxes	-369,038	152,854
Change in pension provision	17,064	6,525
Adjustment for other items not recognized in profit or loss	41,251	6,820
Change in net current assets
Trade account receivables	-1,150,097	-299,347
Inventories and other assets	-519,890	-196,892
Trade account payables	-105,691	-455,351
Other liabilities	-702,224	-1,151,882
Deferred revenues	1,291,016	1,194,773
Tax provisions	-38,931	117,227
Cash flow from business operations (1)	2,790,224	2,156,582

Investment activities
Expenditure for the purchase of tangible and intangible assets	-156,084	-178,849
Expenditure for the purchase of other financial assets	0	-5,244,661
Income from the disposal of other financial assets	3,296,036	3,668,426
Interest/dividend receipts	43,056	90,003
Interest paid	-8,519	0
Cash flow from investment activities (2)	3,174,489	1,665,163
Financing activities
Dividends paid	-14,395,176	-2,823,363
Income from current borrowings	3,000,000	0
Loans disbursed	-3,500,000	0
Repayment of loans granted	3,500,000	0
Cash flow from financing activities (3)	-11,395,176	-2,823,363
Changes in cash and cash equivalents – total of (1) to (3)	-5,430,463	-2,331,944
Cash and cash equivalents at the start of the period	8,859,080	15,117,296
Cash and cash equivalents and the end of the period	3,428,617	12,785,352

ATOSS customer Feldschlösschen (Switzerland)

EUR	Subscribed capital	Capital reserve	Treasury stock	Equity deriving from unrea lized profits/ losses	Unapp. ret. earnings	Total
Status 01.01.2012	4,025,667	-387,528	-322,909	205,237	17,585,809	21,106,276
Net income	0	0	0	0	3,011,707	3,011,707
Withdrawal of treasury shares	-49,099	-273,810	322,909	0	0	0
Dividends	0	0	0	0	-2,823,363	-2,823,363
Other changes in equity	0	0	0	110,963	0	110,963
Other income	0	0	0	110,963	0	110,963
Status 30.06.2012	3,976,568	-661,338	0	316,200	17,774,153	21,405,583
Status 01.01.2013	3,976,568	-661,338	0	-148,944	20,522,139	23,688,425
Net income	0	0	0	0	425,851	425,851
Dividends	0	0	0	0	-14,395,176	-14,395,176
Other changes in equity	0	0	0	164,197	0	164,197
Other income	0	0	0	164,197	0	164,197
Status 30.06.2013	3,976,568	-661,338	0	15,253	6,552,814	9,883,297

CHANGES IN CONSOLIDATED EQUITY AS OF 30.06.2013

One share represents 1 euro of subscribed capital.

Notes to the consolidated financial statements

1. General

The present report has been prepared in accordance with International Financial Reporting Standards (IFRS) in compliance with IAS 1.14. In particular, the report complies with the provisions contained in IAS 34 "Interim Financial Reporting". The requirements contained in German Accounting Standard (DRS) No. 6 regarding interim reporting have likewise been fulfilled.

In accordance with IAS 34.20, the present statements include a consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated cash flow statement, a statement of changes in consolidated equity and explanatory notes to the consolidated statements.

The same financial accounting, valuation and computation methods have been applied as in the case of the annual financial statements to December 31, 2012.

The revised IAS 19, which requires unexpected fluctuations in pension benefit liabilities and assets - so-called actuarial profits and losses – to be recognized immediately in other comprehensive income, plan amendments to be recognized in profit and loss in full in the relevant period and expected interest on plan assets to be recognized at the discount interest rate only, will be applied by the Group at the financial year end, backdated to January 1, 2013.

The Management Board is satisfied that the impression of the economic situation of the company, its net assets, financial position, earnings situation and cash flow conveyed by the present quarterly financial statements accords with the true facts. This interim report has not undergone an auditors' inspection or statutory audit.

2. Reporting period

The present interim report was prepared to June 30, 2013, for the reporting period from January 1, 2013 to that date.

3. Currency

All figures are stated in euro. Amounts are rounded up to whole euro units.

4. Consolidated group

In addition to the parent company ATOSS Software AG, Munich, the consolidated financial statements to June 30, 2013 also include all subsidiary companies:

ATOSS CSD Software GmbH, Cham, Germany ATOSS Software Ges.mbH, Vienna, Austria ATOSS Software AG, Zurich, Switzerland ATOSS Software S.R.L., Timisoara, Romania

These companies are fully consolidated.

5. Changes in equity

The development in equity is evident from the statement of changes in consolidated equity.

6. Sales

The company's sales were composed as follows:

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Software licenses	3,794,399	3,400,980
Software maintenance	7,065,982	6,472,568
Total software	10,860,381	9,873,548
Consulting	4,421,522	4,485,692
Hardware	1,461,670	1,211,700
Others	787,219	702,354
Total sales	17,530,792	16,273,294

The geographic breakdown of sales was as follows:

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Germany	16,232,408	14,578,725
Austria	865,955	816,355
Switzerland	310,086	389,747
German-speaking regions in total	17,408,449	15,784,827
Other countries	122,343	488,467
Total sales	17,530,792	16,273,294

7. Personnel expenses

The consolidated personnel costs to June 30, 2013 were composed as follows:

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Wages and salaries	6,927,866	6,731,709
Social security contributions and expenditure on retirement pensions and welfare	1,401,273	1,333,623
Total personnel costs	8,329,139	8,065,332

8. Other operating income and expenses

In the first six months of the current financial year the company recorded other operating income in the amount of EUR 12,226 (previous year: EUR 48,879). This income essentially resulted from the liquidation of reserves.

The other operating expenses amounting to EUR 23,208 (previous year: EUR 29,231) essentially related to exchange rate losses.

9. Financial investment income and expenses

In the first six months of the current financial year the company recorded income in the amount of EUR 424,548 (previous year: EUR 659,744) from financial investments. This essentially comprised income from the sale of financial assets in the amount of EUR 381,491 (previous year: EUR 334,823), interest income in the amount of EUR 25,704 (previous year: EUR 90,003) and dividends received in the amount of EUR 17,353 (previous year: EUR 99,972).

The company also recorded expenses amounting as of June 30, 2013 to EUR 4,251,286 (previous year: EUR 223,516). These expenses essentially comprised the valuation allowance against the company's gold holdings in the amount of EUR 2,099,790 (previous year: EUR 0), losses on the disposal of gold in the amount of EUR 1,876,960 (previous year: EUR 0), the writedown on a put option in the amount of EUR 152,722 (previous year: EUR 0), interest expenditure in connection with pension provisions in the amount of EUR 56,918 (previous year: EUR 69,180), losses on the disposal of financial assets (equities) in the amount of EUR 56,377 (previous year: EUR 0) and interest on current financial liabilities in the amount of EUR 8,519 (previous year: EUR 0).

10. Tax charge

Consolidated tax expenses to June 30, 2013 were comprised as follows:

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Pre-tax earnings (EBT)	429,342	4,472,892
Expected tax charge (2013: 32.60%, 2012: 32.60%)	-139,966	-1,458,163
Non-deductible operating expenses	-13,583	-6,181
Issues pursuant to section 8b of the German Corporation Tax Act (KStG)	105,437	-50,313
Differences in tax rates at consolidated companies	44,621	53,472
Actual Group tax charge	-3,491	-1,461,185

The company anticipates that the valuation allowance against its gold holdings will be permanent and has taken this into account accordingly in calculating its tax position at the end of the first half-year.

The current tax expense formed as of December 31, 2012 in association with the reduction in value of the gold holdings and recognized in equity in the amount of EUR 229,217 was recognized in profit and loss as of June 30, 2013.

11. Earnings per share

The figure for earnings per share is arrived at by dividing the net result for the period in the amount of EUR 425,851 by the weighted average number of shares outstanding. From January 1 to June 30, 2013 there were an average of 3,976,568 shares in circulation. Consequently, earnings per share for this period amounted to EUR 0.11, in comparison with EUR 0.76 in the first six months of the preceding year.

12. Segment reporting

The identification of operating segments presupposes that a senior decision-maker monitors and assesses the profitability of significant components of the company as the basis for resource allocation and profitability measurement, that the components of the company generate income and incur expenses as part of their business activities, and that financial information is available for these components of the company. Several segments can be aggregated into one segment if the type of products and services, production processes and customers for which the products and services are intended are similar, as well as the sales methods applied, and where they exhibit a significant shortfall relative to the quantitative thresholds for segment formation.

The company has only one uniform business segment within the meaning of IFRS 8 which comprises the creation, sale and implementation of software solutions directed towards the efficient deployment of personnel.

The following tables depict sales revenues broken down by software solutions and their contributions to the operating result.

The individual software solutions comprise:

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE):

ASES and ASE are time and attendance management and workforce scheduling solutions for customers of all sizes in all industries. These software solutions are generally accompanied by other services covering implementation and training. In addition consulting services are rendered with the object of making meaningful use of the available scope and developing optimum solutions for the efficient deployment of personnel under specific operating conditions and in consideration of works agreements and industry-wide pay deals. The company also sells hardware components for time recording and access control purposes. ASES/ASE software is used in conjunction with all major standard system platforms and databases. Moreover thanks to the extensive facility to define customer-specific parameters these solutions are capable of satisfying even the most sophisticated requirements of customers of all sizes in all industries.

ATOSS Time Control (ATC):

ATC represents a software solution for time and attendance management and workforce scheduling catering to small and medium-sized customers, as well as large but decentrally organized clients. Likewise in conjunction with ATC, ATOSS offers software implementation and training as well as consulting services. Merchandise including hardware and recording media is also available. ATC software is installed on the Microsoft Windows system platform in association with standard SQL databases and is particularly user-friendly and convenient for small to medium-sized customers, as well as large decentralized organizations.

EUR	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Sales
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	15,983,725	15,002,087
ATOSS Time Control (ATC)	1,547,067	1,271,207
Total sales	17,530,792	16,273,294
Operating result (EBIT)
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	3,827,131	3,821,318
ATOSS Time Control (ATC)	428,949	215,346
Operating result (EBIT) in total	4,256,080	4,036,664

13. Employees

On June 30, 2013 the company had 280 employees (previous year: 266).

	01.01.2013 - 30.06.2013	01.01.2012 - 30.06.2012
Development	124	118
Consulting	71	69
Sales and marketing	43	39
Administration	42	40
Total	280	266

14. Management Board

The members of the Management Board are:

Andreas F.J. Obereder	Chief Executive Officer
Christof Leiber	Member of the Management Board

15. Supervisory Board

The Supervisory Board was elected at the annual general meeting on April 26, 2013 and is now comprised as follows:

Peter Kirn	Chairman
Rolf Baron Vielhauer von Hohenhau	Deputy Chairman
Klaus Bauer	Member

16. Board member shareholdings

As of June 30, 2013 the following board members held the following numbers of ATOSS shares:

	30.06.2013	31.03.2013	31.12.2012	30.09.2012	30.06.2012
Andreas F.J. Obereder	1,988,285	1,988,285	1,988,285	1,988,285	1,988,285
Peter Kirn	14,760	14,760	14,760	14,760	14,760

The majority shareholder, Andreas F.J. Obereder of Grünwald, Germany, holds 1,988,285 shares representing 50.0000025 percent of the shares in ATOSS Software. His shares are held via the company AOB Invest GmbH of Grünwald, Germany, which is wholly owned by him.

17. Notifiable participating interests

In the first six months of financial year 2013 the company received the following notification regarding changes in participating interests pursuant to Sections 21 ff. of the German Securities Trading Act:

On February 28, 2013 ATOSS Software AG was informed by Investmentaktiengesellschaft für langfristige Investoren TGV of Bonn, Germany, pursuant to § 21 Para. 1 of the German Securities Trading Act that on February 27, 2013 its voting share in ATOSS Software AG of Munich, Germany had fallen below 5% of the voting rights and on that day amounted to 4.96% (equivalent to 197,250 voting rights).

There have been no further notifications pursuant to §§ 21ff of the German Securities Trading Act regarding changes in participating interests.

18. Business transactions with closely related persons

In accordance with a resolution adopted by the Supervisory Board at its meeting on March 5, 2013, the company granted a loan in the amount of EUR 3.5 million to the controlling shareholder AOB Invest GmbH of Grünwald. The loan was granted on standard market terms and subject to standard security. The loan was repaid on April 30, 2013.

The wife of the Chief Executive Officer provides services to the company. In the first six months of the financial year 2013 the value of these services amounted to EUR 1,872 (previous year: EUR 2,236). The company is satisfied that the terms agreed for these transactions are standard market terms.

19. Events after the closing date

In addition on July 15, 2013 the company also repaid the sum of EUR 3.0 million in liabilities resulting from a bank loan.

There have been no further reportable events of particular significance since June 30, 2013.

Declaration by the Legal Representatives

According to the best of our knowledge, we assure that, pursuant to the applicable accounting principles for interim reporting, the interim consolidated financial statements convey a true and fair view of the Group's net assets, financial position and results of operations, and that the business development, including the business results and the Group's position, are presented in the interim Group management reports in such a way that they convey a true and fair view, and that the key opportunities and risks pertaining to the Group's prospective development in the remainder of the fiscal year are described.

Munich, August 12, 2013

Andreas F.J. Obereder Christof Leiber

Chief Executive Officer Member of the Management Board

Disclaimer

This report contains forward-looking statements that are based on the conviction of the Management Board of ATOSS Software AG and reflect current assumptions and estimations. These forward-looking statements are subject to risks and uncertainties. Many facts that cannot currently be predicted may cause the actual performance and earnings of ATOSS Software AG to develop in a different manner. This could for example include the nonacceptance of newly introduced products or services, changes in the general economic and business climate, a failure to achieve efficiency and cost-reduction targets or changes in business strategy.

The Management Board is firmly convinced that the expectations embodied in these forwardlooking statements are sound and realistic. Should however the above-mentioned or other unforeseeable risks materialize, ATOSS Software AG cannot guarantee that the expressed expectations will prove to be correct.

Financial calendar

21.10.2013 Press release announcing the 9-monthly statements

11.-12.11.2013 Equity Forum, Frankfurt/Main (11.11 – 13.11.2013)

15.11.2013 Publication of the 9-monthly financial statements

Impressum

RESPONSIBILITY LIES WITH

ATOSS Software AG Am Moosfeld 3 81829 Munich

Germany T +49 89 4 27 71 0 F +49 89 4 27 71 100 www.atoss.com

INVESTOR RELATIONS

ATOSS Software AG Investor Relations Christof Leiber T +49 89 4 27 71 265 F +49 89 4 27 71 100 [email protected]

OTHER OFFICES

Düsseldorf Robert-Bosch-Straße 14 40668 Meerbusch Germany T +49 21 50 9 65 0

Frankfurt

Campus Carré Herriotstraße 8 60528 Frankfurt/Main Germany T +49 69 13 82 43 0

Hamburg

Osterbekstraße 90b 22083 Hamburg Germany T +49 40 27 81 63 0

Stuttgart

Zettachring 10a 70567 Stuttgart Germany T +49 7 11 7 28 73 200

SUBSIDIARIES

Deutschland ATOSS CSD Software GmbH Rodinger Straße 19 93413 Cham Germany T +49 99 71 85 18 0

Österreich

ATOSS Software Ges. mbH Europaplatz 2/1/2 1150 Vienna Austria T +43 1 25 39 15 562

Schweiz

ATOSS Software AG Leutschenbachstraße 95 8050 Zurich Switzerland T +41 44 3 08 39 56

Rumänien

SC ATOSS Software SRL Str. Diaconu Coresi, Nr. 31 300588 Timisoara Romania T +40 356 71 01 70

atoss.com