ATOSS Software AG — Interim / Quarterly Report 2015

Aug 14, 2015

ATOSS QUARTERLY REPORT Q2/2015

Dear Shareholders, Ladies and Gentlemen,

ATOSS Software AG remains on course for further growth for a tenth year in succession, having recorded sustained success in the first half of 2015. In addition to our highly successful business model and our state of the art solutions, this development is underpinned by the continuously increasing relevance of workforce management in the marketplace.

This is impressively demonstrated by the 15 percent increase in our overall sales revenues over the first half of last year. While the industry association BITKOM is forecasting annual growth in software of 5.7 percent for this year, in the first half-year we achieved an increase in software sales of 11 percent. ATOSS continues to exceed the pace of growth in the market as a whole.

In fact, with an EBIT margin up 1 percent at 26 percent, operating profits (EBIT) climbed by an outstanding 19 percent. Net earnings overall were 14 percent higher. Earnings per share (EPS) as of June 30, 2015 came in at EUR 1.00. This successful operating performance was also reflected in the share price which rose by 23 percent, showing that ATOSS is in sound health – a fact that is of decisive importance both to our shareholders and to our customers.

The sustained ability of ATOSS to innovate and align its solutions with individual sectors and specific processes is of essential importance for the outstanding development in our business. This is the means by which we aim to achieve a material advantage over our rivals. By focusing on individual sectors such as healthcare and the retail sector, we have acquired a substantial share of these markets. In manufacturing and logistics, too, we have successfully acquired new customers. Against this background, we are investing in the continuous development of existing and the creation of new sector-specific solutions.

Besides high liquidity of EUR 21.8 million and an operating cash flow of EUR 4.6 million, our equity ratio of 51 percent is further proof of the outstanding soundness and investment security offered by ATOSS. In addition the deliberate development of our technological and product leadership and our prominent reference customers constitute a sound basis for business success. Having achieved an excellent strategic position as a specialist in workforce management, ATOSS can now look forward to some outstanding prospects for further growth in the current environment.

Given the volume of orders on hand for software licenses, which at the end of the first half-year stood at EUR 5.4 million – significantly above the previous year's level of EUR 4.7 million – we continue to expect the highly positive development in business to be sustained through the rest of 2015, leading once again to a new record year. Despite scheduled investments in developing new markets and a continuing high level of expenditure equal to around one fifth of sales on research & development, we also expect an EBIT margin of around 25 percent.

Yours sincerely,

Andreas F.J. Obereder Christof Leiber

Chief Executive Officer Member of the Board of Management

Letter to Shareholders

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

ECONOMIC BACKGROUND

The German Institute for Economic Research (DIW Berlin) economic barometer indicates moderate Q2 growth of approx. 0.5 percent relative to the preceding quarter. This upward trend is driven primarily by services, with the ifo business climate indicator for the service sector in June 2015 reaching a new high for the first time since July 2011.

The results of the latest economic survey by digital industry association BITKOM reveal a marked increase in confidence with three quarters of German ITC companies expecting higher sales in the second half.

ATOSS SOFTWARE AG

The development in sales underscores sustained customer interest in workforce management, as well as the competitive strength of ATOSS.

All essential financial indicators continue to develop positively, with a tenth record year in prospect.

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

(2) Dividend of EUR 0.72 per share on 02.05.2014 (KEUR 2,863), dividend of EUR 0.88 per share on 29.04.2015 (KEUR 3,499) (3) At end of quarter / half-year.

C O N S O L I DAT E D OV E R V I E W A S P E R I F R S : H A L F -Y E A R LY C O M PA R I S O N I N K E U R

	01.01.2015 - 30.06.2015	Proportion of total revenues	01.01.2014 - 30.06.2014	Proportion of total revenues	Veränderung 2015 zu 2014
Sales	21,663	100%	18,760	100%	15%
Software	12,949	60%	11,681	62%	11%
Software licenses	4,665	22%	4,144	22%	13%
Software maintenance	8,284	38%	7,537	40%	10%
Consulting	5,816	27%	4,945	26%	18%
Hardware	2,154	10%	1,681	9%	28%
Others	744	3%	453	3%	64%
EBITDA	5,850	27%	4,958	26%	18%
EBIT	5,577	26%	4,697	25%	19%
EBT	5,880	27%	5,114	27%	15%
Net profit	3,974	18%	3,482	19%	14%
Cash flow	4,596	21%	2,699	14%	70%
Liquidity (1/2)	21,820		15,325		42%
EPS (in EUR)	1.00		0.88		14%
Employees (3)	318		295		8%

C O N S O L I DAT E D OV E R V I E W A S P E R I F R S : Q UA RT E R LY C O M PA R I S O N I N K E U R

	Q2/15	Q1/15	Q4/14	Q3/14	Q2/14
Sales	10,956	10,707	10,938	9,985	9,107
Software	6,624	6,325	6,387	5,810	5,771
Software licenses	2,436	2,229	2,443	1,930	2,002
Software maintenance	4,188	4,096	3,944	3,880	3,769
Consulting	3,022	2,794	2,707	2,452	2,450
Hardware	838	1,316	1,401	1,384	631
Others	472	272	443	339	255
EBITDA	2,952	2,898	2,758	2,589	2,296
EBIT	2,809	2,768	2,628	2,462	2,170
EBIT margin in %	26%	26%	24%	25%	24%
EBT	2,545	3,335	2,770	2,411	2,270
Net profit	1,717	2,257	1,911	1,639	1,514
Cash flow	-550	5,146	-573	5,945	-1,279
Liquidity (1/2)	21,820	26,218	20,583	21,118	15,325
EPS (in EUR)	0.43	0.57	0.48	0.41	0.38
Employees (3)	318	313	305	300	295

	Q2/15	Q1/15	Q4/14	Q3/14	Q2/14
Sales	10,956	10,707	10,938	9,985	9,107
Software	6,624	6,325	6,387	5,810	5,771
Software licenses	2,436	2,229	2,443	1,930	2,002
Software maintenance	4,188	4,096	3,944	3,880	3,769
Consulting	3,022	2,794	2,707	2,452	2,450
Hardware	838	1,316	1,401	1,384	631
Others	472	272	443	339	255
EBITDA	2,952	2,898	2,758	2,589	2,296
EBIT	2,809	2,768	2,628	2,462	2,170
EBIT margin in %	26%	26%	24%	25%	24%
EBT	2,545	3,335	2,770	2,411	2,270
Net profit	1,717	2,257	1,911	1,639	1,514
Cash flow	-550	5,146	-573	5,945	-1,279
Liquidity (1/2)	21,820	26,218	20,583	21,118	15,325
EPS (in EUR)	0.43	0.57	0.48	0.41	0.38
Employees (3)	318	313	305	300	295

TOTAL SALES (EUR MILL .)

EBIT (EUR MILL.)

SOFTWARE SALES (EUR MILL.)

EPS (EUR)

Facts Overview

Investor Relations ATOSS stock – positive development in price continues – new record figures provide further potential

With some fluctuations, the movement in the price of ATOSS stock followed a highly gratifying path in the first half of 2015, continuing the long-term positive trend. In the second quarter of 2015, the stock price reached the highest level so far in the company's history at EUR 48.45. The price remained high despite the general uncertainties in the market due to the Greek crisis, standing at EUR 39.99 at the end of the first half-year on June 30, 2015. As of the closing date for the period, the stock price had put on 23.0 percent, or 25.8 percent including the dividend.

By comparison, during the first half of 2015, the benchmark Daxsubsector Software Performance Index put on just 10.3 percent. A long-term consideration also underscores the strength of ATOSS stock: From 2007 until May 2015, the price has risen by 290 percent, whereas over the same period the Daxsubsector Performance Index rose by only 84 percent. ATOSS stock has clearly outperformed its benchmark and substantially outpaced the market.

Essential key figures such as cash flow, liquidity and earnings per share (EPS) all remain highly positive. In fact, EPS reached a new historic record of EUR 1.00 in the first half of 2015.

The annual general meeting held on April 28, 2015 voted virtually without a dissenting voice to adopt the company's proposal to increase the dividend. Accordingly, the payment made on the following day of EUR 0.88 per share was 22 percent higher than in the previous year. Against the background of the current development in earnings, given our policy of paying a dividend which as a matter of principle is at least equal to that paid in the previous year and which generally amounts to up to 50 percent of earnings per share, we look forward with confidence to paying an attractive dividend for the current financial year.

Shareholders in ATOSS Software AG benefit from an increase in prosperity not only through the gains in the share price, but also through dividends and substantial irregular special distributions. Overall since 2006, long-term shareholders have received dividend payments totaling EUR 13.28 per share. This combination of strong share price growth and attractive cash distributions continues to appeal in particular to investors with a medium to long-term investment strategy.

Going forward, ATOSS will maintain its position as a technology company with an attractive and reliable dividend yield and a consistently positive operating performance with the potential for growth.

C O N S O L I DAT E D OV E R V I E W A S P E R I F R S : Q UA RT E R LY C O M PA R I S O N I N E U R

	Q2/15	Q1/15	Q4/14	Q3/14	Q2/14
Highest price	48.45	46.05	34.00	30.30	30.73
Lowest price	38.02	27.81	28.51	28.51	28.51
Share price at end of quarter	39.99	32.45	32.50	30.00	29.90
Dividend paid per share (2)	0.88	0.00	0.00	0.00	0.72
Cash flow per share	-0.14	1.29	-0.14	1.49	-0.32
Liquidity per share (1/2)	5.49	6.59	5.18	5.31	3.85
EPS	5.55	0.57	0.48	0.41	0.38
EPS (diluted)	5.55	0.57	0.48	0.41	0.38

(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 0.72 per share on 02.05.2014 (KEUR 2,863), dividend of EUR 0.88 per share on 29.04.2015 (KEUR 3,499)

SHARE PRICE MOVEMENT: Q1/2007 – Q2/2015

Analysts increase upside target, raise forecasts for future years

One notable feature of the figures for the first half of 2015 singled out by analysts at Warburg Research is that ATOSS has succeeded in continuously improving its margins while still investing in new technologies and regional expansion. In view of the company's international expansion and the expected development in the hosting and managed service solutions business, the analysts have also raised their forecasts for future years from 2016 onwards. The outlook for the coming year is reinforced in particular by the further increase relative to the year before in the order book which now stands at EUR 5.4 million. The transparency of ATOSS and its ability to meet forecasts is rated very highly by the analysts and rewarded by a further reduction in the beta factor applied in calculating the upside target. Consequently the upside target has now been lifted by a further 10 percent since the last report, to EUR 44.00 per share. Given the increase in the share price over recent months, the stock continues to be rate as a "hold".

Further information: www.atoss.com

ATOSS DIVIDEND PAYMENTS IN EUR

1. Business and conditions: German economy experiencing an upturn

The global economy lost substantial momentum in the spring of this year, as the rate of expansion in industrial output in both the developed and developing countries slowed sharply by comparison with last autumn. According to the economic forecasting institutes, however, global economic activity is likely to have revived perceptibly once more in the second quarter and should expand at an increasing pace as the year continues. The primary reason for this lies in the decline in oil prices since last autumn, which are likely to have had a positive effect on the global economy.

In Germany, too, the upturn will continue as the labor market remains strong and earnings continue to rise. The fall in value of the euro will boost demand for exports in the second half of the year. According to their latest economic forecast for June of this year, researchers at the ifo Institute expect to see growth of 1.9 percent in real gross domestic product in 2015 and 1.8 percent in the coming year.

The high-tech sector continues to face the future with optimism and is markedly more confident than industry as a whole. A total of 74 percent of companies operating in the digital economy expect sales to rise in the second half of the year. This positive climate is also reflected in the BITKOM index, which despite a small decline of 7 points still stands at a very strong 65. The BITKOM sector continues to serve as an engine of growth for the German economy.

Against this background, in the first half of 2015 ATOSS recorded strong business with sales up 15 percent and a 19 percent increase in operating profits (EBIT) – despite a sustained high level of investments in marketing and development. In its core software business, the company achieved sales growth of 11 percent. Growth in consulting amounted to 18 percent, buoyed up by strong orders on hand for implementation services. Orders on hand as of June 30, 2015 amounted to EUR 5.4 million, compared with EUR 4.7 million last year.

2. Earnings situation: New record sales and results

In the first six months of financial year 2015 ATOSS recorded 15 percent growth in overall sales which came in at EUR 21.7 million (previous year: EUR 18.8 million). In our core software business, turnover climbed 11 percent from EUR 11.7 million to EUR 12.9 million, with software licensing revenues rising from EUR 4.1 million to EUR 4.7 million. Software maintenance, too, continued to develop positively with turnover increasing by 10 percent to EUR 8.3 million.

As of June 30, 2015 consulting sales stood at EUR 5.8 million (previous year: EUR 4.9 million).

Operating profits (EBIT) were 19 percent up on the year before, rising from EUR 4.7 million to EUR 5.6 million.

Group Management Report

In addition, driven primarily by positive financial earnings of EUR 0.3 million in connection with the increase in the gold price, earnings before taxes (EBT) in the reporting period climbed to EUR 5.9 million (previous year: EUR 5.1 million).

Earnings after tax at the end of June 2015 amounted to EUR 4.0 million (previous year: EUR 3.5 million). Earnings per share accordingly came in at EUR 1.00 (previous year: EUR 0.88).

Orders received as of June 30, 2015 amounted to EUR 4.6 million (previous year: EUR 5.4 million). Orders on hand for software licenses at the end of the first half of 2015 amounted to EUR 5.4 million, well up on the previous year's strong figure of EUR 4.7 million, and an excellent starting point for the remainder of the 2015 financial year.

3. Net assets and financial position

In the first six months, cash flow from operations amounted to EUR 4.6 million (previous year: EUR 2.7 million). At the same time, liquidity (cash and cash equivalents less borrowings) increased relative to the same period last year from EUR 10.0 million to EUR 16.0 million. The position as a whole comprising liquidity and other current and non-current financial assets, after adjusting for borrowed funds such as loans, improved from EUR 15.3 million last year to EUR 21.8 million. Liquidity per share on June 30, 2015 including these other current and non-current financial assets and after adjusting for borrowings accordingly stood at EUR 5.49 (previous year: EUR 3.85).

In addition to net earnings of EUR 4.0 million, the EUR 4.6 million in cash flow from operations was also boosted by an increase in deferred revenues of EUR 1.1 million. On the other hand, cash flow was correspondingly reduced mainly by a decline of EUR 1.0 million in miscellaneous current liabilities.

As of June 30, 2015 ATOSS reported an equity ratio of 51 percent (previous year: 53 percent). Consequently, the company remains extremely well capitalized, with solvency assured at all times.

4. Product development

A high level of expenditure on research and 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 7 percent relative to the year before to stand at EUR 4.2 million at the end of June 2015 (previous year: EUR 3.9 million). R&D costs as a proportion of overall sales amounted to 19 percent (previous year 21 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 295 last year to 318. As of June 30, 2015 ATOSS employed 133 members of staff in development (previous year: 128), 87 in consulting (previous year: 80), 50 in sales and marketing (previous year: 44) and 48 in administration (previous year: 43).

Personnel costs for the current financial year amounted as of June 30 to EUR 10.5 million (previous year: EUR 9.3 million).

6. Risks associated with future development

There has been no material change in the company's risk structure with regard to the description contained in the consolidated financial statements to December 31, 2014. The market risk associated with financial assets available for sale essentially concerns the fair value of the company's gold holdings, which stood at EUR 5.8 million as of June 30, 2015 and is dependent on the ongoing development in the gold price. We refer to the further information provided under the following events after the reporting period.

7. Events after the reporting period

As of July 23, 2015 the company sold three quarters of its gold holdings shown as current financial assets to limit negative effects of a declining gold price on the net profit. The proceeds of this transaction amount to EUR 3.8 million.

8. Outlook

In the first six months of the current financial year 2015, ATOSS has experienced an extremely positive development in sales and operating profits. In view of this development and in consideration of the high level of orders on hand, 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 stable sales growth in the current financial year with an EBIT margin of around 25 percent.

CONSOLIDATED BALANCE SHEET TO 30.06.2015

Assets (EUR)	30.06.2015	31.12.2014
Non-current assets
Intangible assets	144,307	141,584
Tangible fixes assets	2,700,190	2,736,726
Other financial assets	482,815	451,755
Deferred taxes	1,012,438	1,006,914
Total non-current assets	4,339,750	4,336,979
Current assets
Inventories	4,629	6,861
Trade accounts receivables	3,872,411	3,842,007
Other financial assets	5,360,791	5,023,032
Other non-financial assets	716,189	534,163
Cash and cash equivalents	15,976,697	15,107,722
Total current assets	25,930,717	24,513,785
Total assets	30,270,467	28,850,764

Equity and Liabilities (EUR)	30.06.2015	31.12.2014
Equity
Subscribed capital	3,976,568	3,976,568
Capital reserve	-661,338	-661,338
Equity deriving from unrealized profits/losses	-1,684,534	-1,707,831
Unappropriated net income	13,807,291	13,333,498
Equity attributable to equity holders of the parent	15,437,987	14,940,898
Non-controlling interests	-6,162	-5,692
Total equity	15,431,825	14,935,206
Non-current liabilities
Pension provisions	4,261,838	4,213,769
Deferred taxes	7,765	0
Total non-current liabilities	4,269,603	4,213,769
Current liabilities
Trade accounts payable	222,583	320,388
Other liabilities	4,486,443	5,450,257
Deferred revenues	3,615,515	2,535,212
Tax provisions	2,155,498	1,306,933
Other provisions	89,000	89,000
Total current liabilities	10,569,039	9,701,790
Total equity and liabilities	30,270,467	28,850,764

CONSOLIDATED INCOME STATEMENT FOR THE PERIOD FROM 01.01. TO 30.06.2015

	Quarterly report		6-months report
EUR	01.04.2015 - 30.06.2015	01.04.2014 - 30.06.2014	01.01.2015 - 30.06.2015	01.01.2014 - 30.06.2014
Sales revenues	10,956,532	9,107,280	21,663,371	18,760,079
Cost of sales	-3,267,011	-2,677,228	-6,731,241	-5,523,816
Gross profit on sales	7,689,521	6,430,052	14,932,130	13,236,263
Selling costs	-1,950,386	-1,494,418	-3,602,597	-3,112,239
Administration costs	-826,343	-815,839	-1,697,652	-1,600,925
Research and development costs	-2,102,622	-1,966,804	-4,168,231	-3,910,604
Other operating income	44,027	26,883	218,898	103,502
Other operating expenses	-45,265	-9,846	-105,882	-18,684
Operating profit (EBIT)	2,808,932	2,170,028	5,576,666	4,697,313
Interest and similar income	-238,842	122,835	352,836	463,006
Interest and similar expenses	-24,571	-23,224	-49,143	-46,341
Earnings before taxes (EBT)	2,545,519	2,269,639	5,880,359	5,113,978
Taxes on income and earnings	-828,389	-755,694	-1,906,405	-1,631,625
Net profit	1,717,130	1,513,945	3,973,954	3,482,353
Attributable to:
Equity holders of the parent:	1,718,639	1,513,945	3,977,982	3,482,353
Non-controlling interests:	-1,509	0	-4,028	0
Earnings per share (undiluted)	0.43	0.38	1.00	0.88
Earnings per share (diluted)	0.43	0.38	1.00	0.88
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 CASH FLOW STATEMENT FOR THE PERIOD FROM 01.01. TO 30.06.2015

EUR	01.01.2015 - 30.06.2015	01.01.2014 - 30.06.2014
Net profit	3,973,954	3,482,353
Depreciation of fixed assets	273,118	260,687
Gains/losses from the disposal/valuation of financial assets available for sale	-337,760	-449,280
Gains/losses from the disposal of fixed assets	2,521	0
Other financial investment income	-15,076	-13,726
Change in deferred taxes	2,241	-219,645
Change in provisions for pension commitments	48,069	15,943
Adjustment for items not recognized in profit or loss	-7,763	-8,269
Change in net current assets
Trade accounts receivable	-30,404	-240,570
Inventories and other assets	-179,794	-278,518
Trade accounts payable	-97,805	-3,766
Other provisions	0	-34,333
Other liabilities	-963,814	-890,042
Deferred revenues	1,080,303	476,176
Tax provisions	848,565	602,285
Cash flow generated from business operations (1)	4,596,355	2,699,295
Cash flow from investment activities
Disbursements for the purchase of tangible and intangible assets	-241,825	-256,438
Interest received	15,075	13,726
Cash flow generated from investment activities (2)	-226,750	-242,712
Cash flow from financing activities
Dividends paid	-3,499,380	-2,863,129
Disbursements from acquisitions of non-controlling interests	-1,250	0
Cash flow generated from financing activities (3)	-3,500,630	-2,863,129
Change in liquidity - total of (1) to (3)	868,975	-406,547
Liquidity at beginning of year	15,107,722	10,392,796
Liquidity at end of year	15,976,697	9,986,250
Cash flow generated from business operations include:
Income taxes paid	1,087,318	1,280,691
Tax refunds received	0	4,051

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD FROM 01.01. TO 30.06.2015

		Quarterly report
EUR	01.01.2015 - 30.06.2015	01.01.2014 - 30.06.2014
Net profit	3,973,954	3,482,353
Components not reallocated in profit and loss
Profits/losses on the revaluation of defined benefit pension plans recognized in equity	0	0
Tax effects on profits/losses on the revaluation of defined benefit pension plans recognized in equity	0	0
Components reallocated in profit or loss in later periods
Profits/losses recognized in equity on the disposal of financial assets available for sale	31,060	33,074
Tax effects on profits/losses recognized in equity on the disposal of financial assets available for sale	-7,763	-8,269
Other comprehensive income for the period after taxes	23,297	24,805
Comprehensive income after taxes	3,997,251	3,507,158

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF 30.06.2015

			Attributable to the equity holders of the parent
EUR	Subscribed capital	Capital reserve	Equity deriving from unrealized profits/losses	Profit shown on balance sheet	Non-controlling interests	Total
01.01.2014	3,976,568	-661,338	-734,394	9,156,749	0	11,737,585
Net profit 2014	0	0	0	3,482,353	0	3,482,353
Other comprehensive income	0	0	24,805	0	0	24,805
Total comprehen sive income	0	0	24,805	3,482,353	0	3,507,158
Dividends	0	0	0	-2,863,128	0	-2,863,128
30.06.2014	3,976,568	-661,338	-709,589	9,775,974	0	12,381,615
01.01.2015	3,976,568	-661,338	-1,707,831	13,333,498	-5,692	14,935,206
Net profit 2015	0	0	0	3,977,982	-4,028	3,973,954
Other comprehen sive income	0	0	23,297	0	0	23,297
Total comprehen sive income	0	0	23,297	3,977,982	-4,028	3,997,251
Dividends	0	0	0	-3,499,380	0	-3,499,380
Acquisitions of non-controlling interests	0	0	0	-4,808	3,558	-1,250
30.06.2015	3,976,568	-661,338	-1,684,534	13,807,291	-6,162	15,431,825

One share represents a notional share of 1 euro of subscribed capital.

1. General

The present quarterly 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, 2014.

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, 2015 for the reporting period from January 1, 2015 to that date.

3. Currency

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

Notes to the consolidated financial statements

7. Personnel expenses

The consolidated personnel costs to June 30, 2015 were composed as follows:

EUR	01.01.2015 –30.06.2015	01.01.2014 –30.06.2014
Wages and salaries	8,763,271	7,769,114
Social security contributions and expenditure on retirement pensions and welfare	1,741,040	1,532,736
Total personnel costs	10,504,311	9,301,850

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 218,898 (previous year: EUR 103,502). This primarily included income from exchange rate differentials in the amount of EUR 151,629 (previous year: 0) as well as from the liquidation of reserves in the amount of EUR 56,967 (previous year: 92,261).

Other operating expenses amounting to EUR 105,882 (previous year: EUR 18,684) essentially related to exchange rate losses amounting to EUR 72,673 (previous year: EUR 6,270).

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 352,836 (previous year: EUR 463,006) from financial investments. This essentially comprised income from write-ups on the company's gold holdings in the amount of EUR 337,760 (previous year: EUR 449,280) and interest income of EUR 15,076 (previous year: EUR 13,726).

The company also recorded expenses amounting as of June 30, 2015 to EUR 49,143 (previous year: EUR 46,341). This almost exclusively concerned interest expenses in connection with pension provisioning.

4. Consolidated companies

In addition to the parent company ATOSS Software AG, Munich, the consolidated financial statements to June 30, 2015 also include all subsidiary companies:

ATOSS CSD Software GmbH, Cham, Germany (100%) ATOSS Software Ges.mbH, Vienna, Austria (100%) ATOSS Software AG, Zurich, Switzerland (100%) ATOSS Software S.R.L., Timisoara, Romania (100%) ATOSS Aloud GmbH, Munich, Germany (97%) These companies are fully consolidated.

In March 2015 the group acquired an additional 5 percent stake in ATOSS Aloud GmbH, increasing its holding from 92 to 97 percent.

5. Changes in equity

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

6. Sales revenues

The company's sales revenues in the financial year were composed as follows:

EUR	01.01.2015 –30.06.2015	01.01.2014 –30.06.2014
Software licenses	4,664,505	4,144,037
Software maintenance	8,283,740	7,536,845
Total software	12,948,245	11,680,882
Consulting	5,816,238	4,945,027
Hardware	2,154,373	1,681,174
Miscellaneous	744,515	452,996
Total sales revenues	21,663,371	18,760,079

The geographic breakdown of sales revenues was as follows:

EUR	01.01.2015 –30.06.2015	01.01.2014 –30.06.2014
Germany	18,737,942	15,916,021
Austria	2,044,462	2,033,434
Switzerland	721,862	453,643
German-speaking territories in total	21,504,266	18,403,098
Other countries	159,105	356,981
Total sales revenues	21,663,371	18,760,079

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 efficient workforce management under specific company operating conditions and in consideration of company regulations or collectively agreed regulations. The company also sells hardware components for time recording and access control purposes. The ASES/ASE software is deployed 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 and in all industries.

ATOSS Time Control (ATC):

ATC offers a software solution to time and attendance management and workforce scheduling for 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 items, including hardware and recording media, are also available. The 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	01.01.2015 –30.06.2015	01.01.2014 –30.06.2014
Sales revenues
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	18,811,337	17,083,296
ATOSS Time Control (ATC)	2,852,034	1,676,783
Total sales revenues	21,663,371	18,760,079
Operating result (EBIT)
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	5,051,647	4,408,645
ATOSS Time Control (ATC)	525,019	288,668
Operating result (EBIT) in total	5,576,666	4,697,313

Operating result (EBIT)

10. Tax charge

Consolidated tax expenses to June 30, 2015 were comprised as follows:

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 3,973,954 by the weighted average number of shares outstanding. From January 1 to June 30, 2015 there were an average of 3,976,568 shares in circulation. Accordingly, earnings per share for this period amounted to EUR 1.00, in comparison with EUR 0.88 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 and management of personnel.

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

EUR	01.01.2015 –30.06.2015	01.01.2014 –30.06.2014
Pre-tax earnings (EBT)	5,880,359	5,113,978
Expected tax charge (2015: 32.60%, 2014: 32.60%)	-1,916,997	-1,667,157
Non-deductible operating expenses	-30,106	-79,118
Current losses for which no deferred tax claim has been recognized	-109,382	0
Tax refunds / back-payments for previous years	320	4,051
Differences in tax rates at consolidated companies	149,760	110,598
Actual Group tax charge	-1,906,405	-1,631,625

16. Board member shareholdings

As of June 30, 2015 the following board members held the following numbers of ATOSS shares:

EUR	30.06.2015	31.03.2015	31.12.2014	30.09.2014	30.06.2014
Andreas F.J. Obereder	1,988,285	1,988,285	1,988,285	1,988,285	1,988,285
Peter Kirn	13,760	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 Mr. Obereder.

17. Notifiable participating interests

In the first six months of financial year 2015 the company received no notifications regarding changes in participating interests pursuant to Sections 21 ff. of the German Securities Trading Act.

18. Business relations with closely related persons

As of June 30, 2015, there were no business relations with closely related persons.

19. Events after the reporting period

As of July 23, 2015 the company sold three quarters of its gold holdings shown as current financial assets to limit negative effects of a declining gold price on the net profit. The proceeds of this transaction amount to EUR 3.8 million.

13. Employees

On June 30, 2015 the company had 318 employees (previous year: 295).

	01.01.2015 –30.06.2015	01.01.2014 –30.06.2014
Development	133	128
Consulting	87	80
Sales and marketing	50	44
Administration	48	43
Total	318	295

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

By a resolution adopted at the annual general meeting on April 28, 2015, the Supervisory Board was re-elected and is comprised as follows:

Peter Kirn	Chairman
Rolf Baron Vielhauer von Hohenhau	Deputy Chairman
Klaus Bauer	Member of the Supervisory 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 non-acceptance 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 forward-looking 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.

Responsibility statement

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 14, 2015

Andreas F.J. Obereder Christof Leiber

Chief Executive Officer Member of the Board of Management

Imprint

Financial calendar

Press release announcing the 9-monthly financial statements Publication of the 9-monthly financial statements October 22, 2015 November 13, 2015

ATOSS at the German Equity Forum November 24, 2015

RESPONSIBLE ATOSS Software AG Am Moosfeld 3 81829 Munich T +49 89 4 27 71 0 F +49 89 4 27 71 100

www.atoss.com

INVESTOR RELATIONS ATOSS Software AG Christof Leiber T +49 89 4 27 71 0 F +49 89 4 27 71 100 christof.leiber@atoss.com

AFFLILIATED COMPANIES

Germany

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

ATOSS Aloud GmbH Am Moosfeld 3 81829 Munich T +49 89 4 27 71 0

Austria

ATOSS Software Ges. m.b.H. Ungargasse 64-66/3/503 1030 Vienna T +43 1 710 57 68 0

Switzerland

ATOSS Software AG Leutschenbachstraße 95 8050 Zurich T +41 44 308 39 56

Romania

SC ATOSS Software SRL Bd. Liviu Rebreanu Nr. 76-78 300755 Timisoara T +40 356 71 01 70

REPRESENTATIONS

Germany
ATOSS Software AG
Robert-Bosch-Straße 14
40668 Meerbusch
T +49 21 50 9 65 0
ATOSS Software AG
Campus Carré
Herriotstraße 8
60528 Frankfurt/Main
T +49 69 13 82 43 0
ATOSS Software AG
Osterbekstraße 90b
22083 Hamburg
T +49 40 27 81 63 0
ATOSS Software AG
Eichwiesenring 1/1
70567 Stuttgart
T +49 7 11 2 14 74 500
Netherlands
ATOSS Software AG
Newtonlaan 115
3584 BH Utrecht
T +31 30 210 60 28

atoss.com