CANCOM SE — Interim / Quarterly Report 2009

Aug 11, 2009

6-month-report 2009

»Leading provider of IT infrastructure and professional services«

Table of con ten t s

	Section	page
	table of contents	02
	Preface – Key figures	03
	Business developmen t Q2	04-09
1)	CANCOM's business and the general economic situation	04-05
2)	Earnings, financial and assets situation of the CANCOM Group	05-07
3)	Shareholdings of the Executive and Supervisory Boards	07
4)	Events of particular significance after the reporting date	08
5)	Risk report	08
6)	Opportunities report	08
7)	Forecast	08
8)	Responsibility statement by the management	09
	Balance Sheet	10-11
	Income statement	12
	Cash flow statement	13
	Development of equity	14-15
	Appendix	16-25

CONTENT

Sehr geehrte Aktionärinnen und Aktionäre,

The first half of 2009 is now behind us, and CANCOM has continued to hold its own in the market despite the economic crisis.

Overall, the figures for the second quarter have suffered a negative impact from the difficult environment in the sector and the small number of working days, although the cost reduction measures we introduced early on have had a stabilising effect on the profit trend.

The services business, which now accounts for about two-thirds of the gross income, has also held up well. From an early stage CANCOM invested in the IT trends of the future, such as virtualisation, storage and security, and is now one of the leading suppliers of these sought-after solution technologies. Incidentally, our strong growth has recently earned us a place among "Bavaria's Best 50" – the 50 most dynamic companies in Bavaria, selected by the Bavarian Ministry of Economics.

As regards our performance in this financial year and in the current quarter, I assume that we have bottomed out. The third quarter of this year has seven more working days than the second, and the fourth quarter has always been the most profitable of the year.

Economic experts are also more optimistic about the further outlook for the German economy. According to Forrester Research, the market research company, there should be an upturn in corporate IT expenditure this year, and the investment bottleneck that has built up in the past few quarters should ease.

We are nevertheless continuing our policy of rigorous cost management. The full integra-

tion of CANCOM SYSDAT and Home of Hardware into the Group by 2010 will bring the expected synergy effects in the medium term, so that they will then start making a positive contribution to the CANCOM Group's performance. At CANCOM, we see the current crisis as an opportunity to take a role in the ongoing process of consolidation in the market, also through acquisitions. It offers us a chance to expand our customer base and strengthen our market position. The strength of our balance sheet and our financial clout give us the necessary room for manoeuvre.

Kind regards,

Klaus Weinmann, CEO

Kennzahlenübersicht CANCOM Konzern in Mio. €	01/01/ - 06/30/2009	01/01/ - 06/30/2008	Veränderungen/ Change	Overview of key figures CANCOM group in € million
Umsatzerlöse	197.5	148.5	+ 33.0%	Revenue
Rohertrag	54.8	46.2	+ 18.6%	Gross profit
Rohertragsmarge	27.7%	31.1%	- 3.4 %	Gross margin
EBITDA	2.8	3.7	- 24.8 %	EBITDA
EBIT	1.6	2.8	- 44.3 %	EBIT
Periodenüberschuss vor Minderheitenanteile	0.9	1.5	- 37.6 %	Net profit before minority interests
Ergebnis pro Aktie (in €) aus fortzu-				Earnings per share (in €)
führenden Geschäftsbereichen (verwässert)	0.08	0.15	-46.7 %	from continuing operations /diluted)
Durchschnittliche Aktienzahl				Adjusted average number of shares
(in 1.000) (verwässert)	10,391	10,391	+/- 0%	(in 1,000) (diluted)
Mitarbeiter zum 30.06.	1,664	1,337	+ 24.5%	Employees as of 30 June

			Veränderungen/
in Mio. €	06/30/2009	12/31/2008 C	hange	in € million
Bilanzsumme	107.7	120.7	- 10.8 %	Balance sheet total
Eigenkapital	39.9	38.9	+ 2.5 %	Equity
Eigenkapitalquote	37.0 %	32.2 %	+ 4.8 %	Equity ratio

Key figures

in Euro million

1. CANCOM's business and the general economic situation

Organisational and legal structure of the CANCOM Group

CANCOM IT Systeme Aktiengesellschaft, based in Jettingen-Scheppach, Germany, performs the central financing and management function for the equity investments held by the CANCOM Group.

Focus of activities and sales markets

One of the largest integrated systems providers in Germany, the CANCOM Group has been transformed over the last few years from a systems house focusing primarily on hardware and software, into an IT systems integrator. As an integrated service provider, its central focus is now on providing IT services and integrating IT systems into companies in addition to selling leading manufacturers' hardware and software. The IT services offering includes design and integration of IT systems as well as system operation.

The CANCOM Group's customer base therefore primarily includes commercial end-users, from independent professionals and medium and large-sized companies to public-sector institutions. Through the e-commerce platform of Home of Hardware GmbH & Co. KG, which the CANCOM Group acquired in 2008, it provides products and services to private consumers as well as B2B customers.

Explanation of the control system used within the Group

To control and monitor the performance of the individual subsidiaries, CANCOM analyses monthly key figures such as their sales revenues, gross profit, operating expenditure and operating profit, and compares these with the original plan as well as the quarterly forecast. Additionally, the Company regularly uses external indicators such as inflation rates, interest rates, the general economic trend and the performance of the IT sector – as well as forecasts for these – for the purpose of management control. The cash management procedures include a daily status assessment.

Research and development activities

The business activities of the CANCOM Group are focused on hardware and software distribution and the provision of services. Research and development expenses are incurred in the growth areas of virtualisation solutions, managed services, online technologies, system development and process optimisation.

Overview of the CANCOM Group's business performance

The CANCOM Group's path of growth continued in the first half of 2009. Consolidated sales revenues were significantly higher than in the first half of 2008.

The Group's consolidated sales revenues in the first half of 2009 were up 33.0 percent year on year, from € 148.5 million to € 197.5 million. Consolidated gross profit rose by 18.6 percent, from € 46.2 million to € 54.8 million. The gross profit margin fell from 31.1 percent to 27.7 percent, owing to the acquisition of the e-tailer Home of Hardware in 2008.

Consolidated EBITDA for the first half of 2009 amounted to € 2.8 million, and consolidated EBIT was € 1.6 million.

Significant events and investments

There were no significant events or investments in the period 1 January to 30 June 2009.

Employees

As at 30 June 2009, the CANCOM Group employed 1,664 people.

The employees worked in the following areas (as at 30 June 2009):

Total	1,664
Sales	286
Purchasing	30
Professional services	1,093
Marketing and product management	24
Logistics and customer services	78
Administration	145

Personnel expenses in the first half year were as follows (in € '000):

	1 Jan. to 30 Jun. 2009	1 Jan. to 30 Jun. 2008
Wages and salaries	33,744	27,084
Social security contributions	6,340	4,962
of which pension provisions	72	45
Total	40,084	32,046

2. Earnings, financial and assets situation of the CANCOM Group

a) Earnings

The CANCOM Group's sales revenues rose significantly in the first half of 2009.

The consolidated sales revenues of the CANCOM Group in the first half of 2009 were up 33.0 percent year on year, at € 197.5 million compared with € 148.5 million.

The considerable growth is mainly attributable to the inclusion in the consolidated accounts of the full figures for the new subsidiaries, CANCOM SYSDAT GmbH and Home of Hardware GmbH & Co. KG.

The consolidated sales revenues of the operational business show a slight decline.

Note: Some adjustments to the previous year's figures were necessary in line with the provisions of IFRS 5 for areas that in 2008 were classified as discontinued operations.

Sales revenues of the CANCOM Group: year-on-year comparison of first half figures, 2008 and 2009 (in € million)

In Germany, sales revenues for the first half of 2009 were up 37.2 percent year on year, at € 187.4 million. This growth is mainly owing to the acquisition of CANCOM Sysdat GmbH and Home of Hardware GmbH & Co. KG.

In the international business, consolidated sales revenues were down by 15.1 percent, from € 11.9 million to € 10.1 million.

In the business solutions segment, sales revenues were up 12.3 percent, from € 87.7 million to € 98.5 million. In the IT solutions segment they rose by 62.8 percent, from € 60.8 million to € 99.0 million.

The consolidated gross profit for the first half of 2009 was up 18.6 percent year on year, from € 46.2 million to € 54.8 million. The gross profit margin fell from 31.1 percent to 27.7 percent, owing to the addition of the trading business of the e-tailer Home of Hardware GmbH & Co. KG in 2008.

Gross profit of the CANCOM Group: year-on-year comparison of first half figures, 2008 and 2009 (in € million)

Consolidated EBITDA for the first half of 2009 was down year on year from € 3.7 million to € 2.8 million. The profit trend in the first half of the year reflects the depressed economic situation and its impact on nearly all sectors. There were significantly fewer working days in the second quarter of 2009 than in 2008 because of the way public holidays fell, and the effect of this, combined with restructuring costs, eroded the Group's profits.

EBITDA of the CANCOM Group: year-on-year comparison of first half figures, 2008 and 2009 (in € million)

Consolidated EBIT for the first half was down year on year, from € 2.8 million to € 1.6 million.

EBIT of the CANCOM Group: year-on-year comparison of first half figures, 2008 and 2009 (in € million)

The net income for the first half of 2009 was € 0.9 million, compared with € 1.5 million in the first half of 2008. Earnings per share are consequently € 0.08 for the first half of 2009, compared with € 0.15 for the first half of 2009.

The order position

In the business solutions segment and parts of the IT solutions segment, the majority of incoming orders are converted to sales within two weeks because of our large delivery capacity. Consequently, the reporting date figures on their own do not give a true picture of our order situation in this area of business, which is why they are not published.

Because of the stable services business – which now accounts for about two thirds of the gross profits (total output less material costs and services rendered) – as well as the healthy condition of the balance sheet, the management feels the Group is in a strong position within the IT sector.

b) Asset and financial position

Objectives of financial management

The core objective of the financial management of the CANCOM Group is to safeguard its liquidity at all times, to ensure that day-to-day business activities can be continued. In addition, the Group aims to achieve optimum profitability as well as a high credit status to ensure favourable refinancing rates.

Notes on the capital structure

On the assets side of the consolidated balance sheet, there was a 15.1 percent fall in current assets to € 70.7 million between 31 December 2008 and 30 June 2009. Trade accounts receivable went down by 6.1 percent to € 41.5 million. Cash and cash equivalents fell to € 7.7 million between 31 December 2008 and 30 June 2009 owing to seasonal effects, but was up year on year from € 7.3 million to € 7.7 million. Non-current assets were 1.1 percent lower than at 31 December 2008, at € 37.0 million.

On the liabilities side of the balance sheet, there was a 20.9 percent fall in current liabilities to € 48.1 million. This is mainly owing to the reduction in trade accounts payable from € 39.3 million to € 32.3 million. Other current financial liabilities, short-term loans and the current component of long-term loans fell from € 4.4 million to € 2.3 million.

Non-current liabilities with a remaining term of at least one year were 5.7 percent lower than at 31 December 2008, at € 19.7 million.

The balance sheet total fell to € 107.7 million, compared with € 120.7 million at 31 December 2008.

The nominal equity capital was increased from € 38.9 million to € 39.9 million over the first half of 2009, mainly through transfers to net profits. Overall, therefore, the equity ratio as at 30 June 2009 was 37.0 percent, compared with 32.2 percent as at 31 December 2008.

Notes on the changes in the cash flow

The cash flow from ordinary activities is traditionally negative during the year, and as at 30 June 2009 there was a negative cash flow of € 9.2 million. This is mainly owing to a reduction in trade accounts payable as well as a change in inventories.

The cash flow from investing activities fell from € 0.8 million as at 30 June 2008 to a negative cash flow of € 0.4 million as at 30 June 2009.

The negative cash flow from financing activities was higher than in the first half of 2008, at € 0.9 million compared with € 0.2 million in the same period of the previous year.

Net cash as at 30 June 2009 was higher overall than at the same date in 2008, at € 7.7 million compared with € 7.3 million. Of this figure, € 0.1 million is cash from discontinued operations.

3. Shares held by members of the Executive and Supervisory Boards as at 30 June 2009

Total number of shares:	10,390,751	100%
Held by the Executive Board:
Klaus Weinmann	543,312	5.23%
Paul Holdschik	64,781	0.62%
Rudolf Hotter	175,000	1.68%
Held by the Supervisory Board:
Walter von Szczytnicki	6,252	0.06%
Stefan Kober	826,289	7.95%
Dr. Klaus F. Bauer	1,500	0.01%
Raymond Kober	920,891	8.86%
Walter Krejci	10,000	0.10%
Regina Weinmann	100,000	0.96%

4. Events of particular significance after the reporting date

CANCOM IT Systeme AG has acquired the remaining 24.5 percent of the shares in Home of Hardware GmbH & Co KG via one of its subsidiaries. The acquisition is documented in a contract of sale dated 5th August 2009.

5. Risk report

There have been no major changes in the risks of future development at CANCOM since the start of the current financial year. Details of the risks can be found in the annual report for 2008, starting on page 36. The annual report can be downloaded from www.cancom. de, or obtained free of charge from the Company.

6. Opportunities report

There have been no major changes in the opportunities of future development at CANCOM since the beginning of the current financial year. Details of the opportunities can be found in the annual report for 2008, starting on page 41.

7. Forecast

After the sharp downturn in the economy in Germany at the beginning of the year, there are now increasing signs of a levelling-off. The German Ministry for Economics feels that, although the figures for the second quarter could show another deterioration in the performance of the economy as a whole, any downturn should be much less severe than before.

In the first quarter, Germany's gross domestic product was 3.8 percent lower than in the previous quarter. The German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung) expects the figures for the second quarter to show a quarter-on-quarter decline of 0.5 percent in economic output.

Forecasts for economic growth in 2009 range between minus 1.5 percent (worldwide) and minus 6.0 percent (Germany) (source: Deutsche Bank Research, 9 July 2009). The economy is only expected to pick up again from 2010, following the economic recovery programmes currently being pursued.

The latest forecasts of the German Association for Information Technology, Telecommunications and New Media (BITKOM) suggest that given the current economic crisis IT sales will probably fall by approximately 2.2 percent in 2009, following growth of about 3.4 percent in 2008. The hardware segment is expected to shrink by 7.0 percent (2008: 0 percent) and the software segment by 2.2 percent (2008: growth of 3.7 percent). The IT services segment is expected to grow slightly by 0.7 percent (2008: 5.7 percent).

Performance of the German IT sector in 2009*

(real change in comparison with 2008, as a percentage)

* Forecast: BITKOM, July 2009

BITKOM identifies future IT trends in which there is growth potential even in times of crisis.

CANCOM geared its business policy to the IT trends of the future at an early stage, and its sales and services structure is designed accordingly. Because of the promising prospects, the Group plans to continue pursuing the same policy in the future.

CANCOM has expanded its market presence as well as improving its customer proximity in the German-speaking countries, and is represented all over Germany and Austria by its many service and consulting locations.

In the business solutions segment, the sales structures are to be optimised further, for instance by expanding key account management. Key account management improves customer proximity and helps achieve an integrated approach to customers, especially in identifying their services requirements. This structure facilitates the efficient and fast identification of potential IT projects.

The tried and tested concept of specialist sales and marketing departments works by bundling specific expertise in dedicated units, while allowing the sales department quick access to information on the situations of individual customers. This concept is being expanded to ensure optimal dovetailing of the trading and service/consulting areas.

Additionally, the CANCOM Group's market position in the German IT environment is to be consolidated by means of targeted acquisitions. The market environment continues to offer favourable conditions for this policy, since several small, mostly owner-managed, integrated systems providers and IT service providers are looking for prospective buyers.

In consideration of the present conditions, for the financial years 2009 and 2010 the Executive Board expects further growth in sales revenues, a downturn in profits, but a continued positive financial situation.

The Executive Board wishes to point out that the actual results may deviate substantially from expectations. Forecasting is made significantly more difficult by the uncertain economic conditions.

8. Responsibility statement by the management

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 assets, liabilities, financial position and profit or loss 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.

Jettingen-Scheppach, Germany, August 2009 CANCOM IT Systeme Aktiengesellschaft

The Executive Board

This document has not been audited. It contains statements and information about the future that are based on the assumptions and estimates of the Executive Board of CANCOM IT Systeme Aktiengesellschaft. These statements are identifiable by words and phrases such as "plan", "intend", "will", "expect", "we feel" etc. and are based on current expectations, assumptions and assessments. Although we feel that these expectations are realistic, we cannot guarantee their correctness. The assumptions may be subject to several internal and external risks and uncertainties, which may lead to the actual results deviating considerably, either positively or negatively, from the situations and figures forecast. The following influencing factors are relevant in this respect: changes in the general economic and business situation; changes in interest rates and foreign currency exchange rates; changes in the competitive situation, for instance by the emergence of new competitors, new products and services or new technologies; changes in the consumer habits of target customer groups etc.; and changes to the business strategy. CANCOM does not plan to update its forecasts beyond the legal requirements, nor does it make any commitment to do so.

Consolidated balance sheet (ifrs) – Assets

Zahlenangaben in T€			Figures in € '000
Aktiva	06/30/09	12/31/08	Assets
Kurzfristige Vermögenswerte			Current assets
Zahlungsmittel und Zahlungsmitteläquivalente	7,722	18,282	Cash and cash equivalents
Zur Veräußerung gehaltene Vermögenswerte	3,266	3,378	Assets held for sale
Forderungen aus Lieferungen und Leistungen	41,542	44,175	Trade accounts receivable
Sonstige kurzfristige finanzielle Vermögenswerte	2,712	4,141	Other current financial assets
Vorräte	11,711	10,080	Inventories
Aufträge in Bearbeitung	987	1,140	Orders in process
Rechnungsabgrenzungsposten und			Prepaid expenses and
sonstige kurzfristige Vermögenswerte	2,797	2,099	other current assets
Kurzfristige Vermögenswerte, gesamt	70,737	83,295	Total current assets
Langfristige Vermögenswerte			Long-term assets
Sachanlagevermögen	5,433	5,401	Property, plant and equipment
Immaterielle Vermögenswerte	4,320	4,544	Intangible assets
Geschäfts- oder Firmenwert	23,509	23,787	Goodwill
Finanzanlagen	129	129	Investments
Nach der Equity-Methode bilanzierte Finanzanlagen	13	13	Investments accounted for by the equity method
Ausleihungen	199	199	Notes receivable/loans
Sonstige finanzielle Vermögenswerte	705	766	Other financial assets
Latente Steuern aus temporären Differenzen	327	394	Deferred taxes arising from temporary differences
Latente Steuern aus steuerlichem Verlustvortrag	2,279	2,088	Deferred taxes arising from tax loss carryover
Sonstige Vermögenswerte	54	58	Other assets
Langfristige Vermögenswerte, gesamt	36,968	37,379	Total long-term assets
Aktiva, gesamt	107,705	120,674	Total assets

Consolidated balance sheet (ifrs) – Equity and liabilities

Zahlenangaben in T€			Figures in € '000
Passiva	06/30/09	12/31/08	Equity and liabilities
Kurzfristige Schulden			Current liabilities
Kurzfristige Darlehen und kurzfristiger Anteil an			Short term debt and
langfristigen Darlehen	1,196	1,800	current portion of long-term debt
Verbindlichkeiten aus Lieferungen
und Leistungen	32,265	39,257	Trade accounts payable
Erhaltene Anzahlungen	1,569	1,951	Advanced payments redeived
Sonstige kurzfristige finanzielle Schulden	1,144	2,639	Other current financial liabilities
Rückstellungen	2,600	2,630	Accrued expenses
Umsatzabgrenzungsposten	1,039	835	Deferred revenues
Verbindlichkeiten aus Ertragssteuern	431	529	Income tax payable
Sonstige kurzfristige Schulden	6,389	9,598	Other current liabilities
Mit Veräußerung im Zusammenhang stehende Schulden	1,459	1,590	Liabilities associated with held for sale
Kurzfristige Schulden, gesamt	48,092	60,829	Total current liabilities
Langfristige Schulden			Long-term liabilities
Langfristige Darlehen	4,378	5,014	Long-term debt, less current portion
Genussrechtskapital und nachrangige Darlehen	11,571	11,571	Profit-participation capital and subordinated loans
Umsatzabgrenzungsposten	248	381	Deferred revenues
Latente Steuern aus temporären Differenzen	1,258	1,287	Deferred taxes from temporary differences
Pensionsrückstellungen	152	150	Pension provisons
Sonstige langfristige finanzielle Schulden	1,096	1,207	Other long-term financial liabilities
Sonstige langfristige Schulden	1,039	1,319	Other long-term liabilities
Langfristige Schulden, gesamt	19,742	20,929	Total Long-term liabilities
Eigenkapital			Equity
Gezeichnetes Kapital	10,391	10,391	Shared capital
Kapitalrücklage	15,441	15,441	Additional paid-in capital
Bilanzgewinn/Bilanzverlust			Net profit
(inklusive Gewinnrücklagen)	14,331	13,416	(incl. retained earnings)
Eigenkapitaldifferenz aus Währungsumrechnung	-249	-324	Currency translation difference
Minderheitenanteile	-43	-8	Minority interests
Eigenkapital, gesamt	39,871	38,916	Total equity
Passiva, gesamt	107,705	120,674	Total equity and liabilities

Income statement (ifrs)

Zahlenangaben in T€	04/01/09	04/01/08	01/01/09	01/01/08	Figures in € '000
Gewinn- und Verlustrechnung	-06/30/09	-06/30/08	-06/30/09	-06/30/08	Income Statement
Umsatzerlöse	95,528	74,735	197,482	148,486	Revenues
Sonstige betriebliche Erträge	578	107	775	286	Other operating income
Andere aktivierte Eigenleistungen	0	122	0	305	Other capitalised services rendered for own account
Gesamtleistung	96,106	74,964	198,257	149,077	Total operating revenue
Materialaufwand /					Cost of purchased
Aufwand für bezogene Leistungen	-69,845	-51,572	-143,487	-102,915	materials and services
Rohertrag	26,261	23,392	54,770	46,162	Gross profit
Personalaufwand	-19,360	-16,090	-40,084	-32,064	Personnel expenses
Abschreibungen auf Sachanlagen					Depreciation of property, plant and equipment
und immaterielle Vermögensgegenstände	-633	-470	-1,240	-926	and amortisation of intangible assets
Sonstige betriebliche Aufwendungen	-5,761	-5,330	-11,888	-10,395	Other operating expenses
Betriebsergebnis	507	1,502	1,558	2,795	Operating income
Zinsen und ähnliche Erträge	41	47	99	116	Interest and similar income
Zinsen und ähnliche Aufwendungen	-318	-325	-653	-620	Interest and other expenses
Abschreibungen auf Finanzanlagen	0	-3	0	-5	Write-downs of financial assets
Gewinn-Verlustanteile aus Joint Ventures,					Share in profit or loss from joint ventures
die nach der Equity-Methode bilanziert werden	0	1	0	-1	accounted for by the equity method
Währungsgewinne / -verluste	1	9	8	-13	Foreign currency exchange income / losses
Ergebnis vor Steuern					Profit before taxes
(und Minderheitenanteile)	231	1,231	1,012	2,272	(and minority interests)
Steuern vom Einkommen und Ertrag	114	-392	-166	-670	Income tax expense
Ergebnis nach Steuern aus
aus fortzuführenden Geschäftsbereichen	345	839	846	1,602
Ergebnis aus aufgegebenen Geschäftsbereichen	58	-265	39	-83	Loss from discontinued operations
Konzernjahresüberschuss	403	574	885	1,519	Net income for the year
davon entfallen auf Gesellschafter					thereof attributable to the
des Mutterunternehmens	422	558	915	1,467	shareholders of the parent
davon entfallen auf Minderheiten	-19	16	-30	52	thereof attributable to minority interests
Durchschnittlich im Umlauf befindliche					Average number of
Aktien (Stück) unverwässert	10,390,751	10,390,751	10,390,751	10,390,751	shares outstanding (basic)
Durchschnittlich im Umlauf befindliche					Average number of
Aktien (Stück) verwässert	10,390,751	10,390,751	10,390,751	10,390,751	shares outstanding (diluted)
Ergebnis je Aktie aus					Earnings per share
fortzuführenden Geschäftsbereichen (unverwässert)	0.04	0.08	0.08	0.15	from continuing operations (non-diluted)
Ergebnis je Aktie aus					Earnings per share
fortzuführenden Geschäftsbereichen (verwässert)	0.04	0.08	0.08	0.15	from continuing operations (diluted)
Ergebnis je Aktie aus					Earnings per share
aufgegebenen Geschäftsbereichen (unverwässert)	0.01	-0.03	-0.00	-0.01	from discontinued operations (non-diluted)
Ergebnis je Aktie aus					Earnings per share
aufgegebenen Geschäftsbereichen (verwässert)	0.01	-0.03	-0.00	-0.01	from discontinued operations (diluted)

Consolidated cash flow statement (ifrs)

Zahlenangaben in T€	01/01/09	01/01/08	Figures in € '000
Kapitalfluss	-06/30/09	-06/30/08	Cashflow
Cashflow aus gewöhnlicher Geschäftstätigkeit:			Cash flow from ordinary activities:
Periodengewinn vor Steuern- und Minderheitenanteilen	1,012	2,272	Net profit for the period before taxes and minority interests
Berichtigungen:			Adjustments:
+/- Abschreibungen auf Sachanlagen und immaterielle			+/- Depreciation of property, plant and
Vermögensgegenstände	1,240	926	equipment, and amortisation of intangible assets
+/- Veränderungen der langfristigen Rückstellungen	2	-33	+/- Changes in long-term accruals
+/- Veränderungen der kurzfristigen Rückstellungen	154	-146	+/- Changes in current accruals
+/- Ergebnis aus dem Abgang von Anlagevermögen	3	-69	+/- Profit/ losses on the disposal of fixed assets
+/- Zinsaufwand	554	504	+/- Interest expense
+/- Veränderungen der Vorräte	-1,631	-70	+/- Changes in inventories
+/- Veränderungen der Forderungen aus Lieferungen			+/- Changes in trade accounts receivable
und Leistungen sowie anderer Forderungen	3,321	-667	and other accounts receivables
+/- Veränderungen der Verbindlichkeiten aus Lieferungen			+/- Changes in trade accounts payables
und Leistungen sowie anderer Schulden	-13,687	-7,152	and other accounts payable
+/- Gezahlte Zinsen	-100	-39	+/- Interest paid
+/- Gezahlte und erstattete Ertragsteuern	-123	-442	+/- Income tax payments and rebates
+/- Einzahlungen / Auszahlungen aufgegebene Geschäftsbereiche	89	173	+/- Cash inflow / outflow from discontinued operations
Nettozahlungsmittel aus betrieblicher Tätigkeit	-9,166	-4,743	Net cash from operating activities
Cashflow aus Investitionstätigkeit			Cash flow from investing activities
+/- Erwerb von Tochterunternehmen	573	-148	+/- Acquisition of subsidiaries
+/- Beim Kauf von Anteilen erworbene Zahlungsmittel	0	0
+/- Zahlungen für Zugänge zu immateriellen			+/- Payments for additions to intangible assets as
Vermögenswerten sowie Sachanlagen	-1,052	-1,672	well as property, plant and equipment
+/- Zahlungen für Zugänge und Abgänge			+/- Payments for additions to and disposal
zu anderen Finanzanlagen	0	0	of financial assets
+/- Erlöse aus dem Abgang von Sachanlagen			+/- Proceeds from disposal of property, plant and
und Finanzanlagen	1	11	equipment as well as financial assets
- Beim Verkauf von Anteilen hingegebene Zahlungsmittel	0	-191	- Cash used in disposal of equity holdings
+/- Erhaltene Zinsen	99	116	+/- Interest received
+/- Einzahlungen / Auszahlungen aufgegebene Geschäftsbereiche	0	2,675	+/- Cash inflow / outflow from discontinued operations
Für Investitionstätigkeit eingesetzte Nettozahlungsmittel	-379	791	Net cash used in investing activities
Cashflow aus Finanzierungstätigkeit			Cash flow from financing activities
+/- Ein/Auszahlungen für aufgenommene Kredite	-1,240	381	+/- Inflows/ outflows from borrowings
+/- Gezahlte Zinsen	-553	-581	+/- Interest paid
+/- Ein- / Auszahlungen aus Finanzierungs-Leasingverträgen	807	0	+/- Cash inflow/outflow finance lease
+/- Einzahlungen / Auszahlungen aufgegebener Geschäftsbereiche	53	0	+/– Cash inflow/ outflow from discontinued operations
Für Finanzierungstätigkeit eingesetzte Nettozahlungsmittel	-933	-200	Net cash used in financing activities
Nettozu-/abnahme von Zahlungsmitt. u. Zahlungmittelaqivalente	-10,478	-4,152	Net change in cash and cash equivalents
+/- Wechelkursbedingte Wertänderungen	7	-4	+/- Changes in value resulting from foreign currency exchange
+/- Finanzmittelbestand am Anfang der Periode	18,282	11,778	+/- Cash and cash equivalents as at beginning of period
Finanzmittelbestand am Ende der Periode	7,811	7,622	Cash and cash equivalent sat end of period
Zusammensetzung:			Breakdown:
Liquide Mittel	7,722	7,286	Cash
Liquide Mittel aus aufgegebene Geschäftsbereiche	89	336	Cash from discontinued operations
	7,811	7,622

Consolidated statement of changes in equity (ifrs)

	Aktien/	Gezeichnetes Kapital	Kapitalrücklagen/	Gewinnrücklagen	Eigene Anteile
	Shares	Issued capital	Capital reserves	Revenue reserves	Treasury shares
	TStück/Quantity '000	T€ /'000	T€ /'000	T€ /'000	T€ /'000
31. Dezember 2007	10,391	10,391	15,441	122	0
Kapitalerhöhungen	0	0	0
Veränderung der kumulierten
Währungsdifferenzen
Ergebnis des Berichtszeitraums
Minderheitenanteile:
- Minderheitenanteile-Ergebnisanteil
31. Dezember 2008	10,391	10,391	15,441	122	0
Kapitalerhöhungen	0	0	0
Veränderung der kumulierten
Währungsdifferenzen
Veränderung der Rücklagen:
- Veränderung stock options
- IPO Kosten			0
Ergebnis des Berichtszeitraums
Minderheitenanteile:
- Minderheitenanteile-Ergebnisteil
- Ausschüttungen
- Veränderungen durch Erwerb/Veräußerung
30. Juni 2009	10,391	10,391	15,441	122	0

Consolidated statement of changes in equity (ifrs)

	Eigenkapital gesamt/Total	Minderheitenanteile	Bilanzgewinn/	Eigenkapitaldiff. aus der erstmaligen Anwendung	Eigenkapitaldiff. aus der Währungsumrechnung/
	equity	Minority interests	Earned surplus	von IFRS	Translation reserve
		T€ /'000	T€ /'000	T€ /'000	T€ /'000
31 December 2007	36,254	-5	10,752	-153	-294
Capital increase	0
Change in accumulated foreign
currency exchange difference	-30				-30
Net profit for the period	2,695		2,695
Minority interests:
- Result of minority interests	-3	-3
31 December 2008	38,916	-8	13,447	-153	-324
Capital increase	0
Change in accumulated foreign
currency exchange difference	75				75
Change in reserves
- change in stock options	0
	0
Net profit for the period	915		915
Minority interests:
- Share in profit attributable to minority interests	-35	-35
	0
Change following acquisition/disposal	0
	39,871	-43	14,362	-153	-294
30 June 2009

NOTES

to the consolidated accounts for the quarter ended 30 June 2009

A. The principles adopted for the consolidated financial statements

1. General information

The consolidated financial statements of CANCOM IT Systeme Aktiengesellschaft and its subsidiaries ("the CANCOM Group" or "the Group") for the financial year 2009 were drawn up according to the International Financial Reporting Standards or the International Accounting Standards (IFRS/IAS).

The main corporate objective of CANCOM IT Systeme Aktiengesellschaft and its consolidated subsidiaries is the sale and distribution of integrated IT system solutions (hardware, software and network products) and the provision of a broad range of IT services (e.g. consultation, system integration, service and support, and training).

The consolidated financial statements were drawn up in euro.

The financial year covers the period from 1 January to 31 December 2009. The address of the Company's registered office is Messerschmittstrasse 20, 89343 Jettingen-Scheppach, Germany.

The shares are traded on the Regulated Market of the FWB Frankfurt Stock Exchange under ISIN DE0005419105 and are admitted to the Prime Standard of Deutsche Börse AG.

2. Reporting entity – scope of consolidation

The consolidated financial statements include CANCOM IT Systeme Aktiengesellschaft and all subsidiaries in which CANCOM IT Systeme Aktiengesellschaft has either a direct or an indirect majority shareholding, or in which it holds the majority of the voting rights. These subsidiaries are fully consolidated.

	Company's registered office	Share- holding
1. CANCO M Deutschland GmbH and its subsidiaries	Jettingen-Scheppach, Germany 100.0
• CANCOM (Switzerland AG)	Caslano / Switzerland	100.0
• CANCOM Computersysteme GmbH and its subsidiary	Grambach / Austria	100.0
– CANCOM a + d IT solutions GmbH	Perchtoldsdorf / Austria	100.0
2. CANCO M NSG GmbH	Jettingen-Scheppach, Germany 100.0
3. CANCO M IT Solutions GmbH	Jettingen-Scheppach, Germany 100.0
and its subsidiary
• acentrix GmbH	Jettingen-Scheppach, Germany	51.0
4. CANCO M SYSDAT GmbH	Cologne, Germany	100.0
5. SYSNE T Computer-
Systemvertriebsgesellschaft mbH	Jettingen-Scheppach, Germany 100.0
and its subsidiaries
• Home of Hardware GmbH & Co. KG	Westendorf, Germany	75.5
• Home of Hardware Verwaltungs GmbH	Westendorf, Germany	100.0
6. CANCO M physical infrastructure GmbH and its subsidiary	Jettingen-Scheppach, Germany 100.0
• Novodrom People Value Service GmbH	Jettingen-Scheppach, Germany 100.0
7. CANCO M Service Center Süd GmbH	Jettingen-Scheppach, Germany 100.0
8. CANCO M Ltd.	Guildford / UK	100.0

3. Accounting and valuation policies

The same accounting and valuation policies were used as in the consolidated financial statements for the financial year 2008, which can be downloaded from www.cancom.de.

Currency	Q2/2009	Q2/2008	Q2/2007
Swiss francs • Rate on reporting date • Average rate	€ 1=1.525 SFR € 1=1.506 SFR	€ 1=1.606 SFR € 1=.,544 SFR € 1=1.606 SFR € 1=.,632 SFR
Pounds sterlin • Rate on reporting date • Average rate	€ 1=0.852 GBP € 1=0.894 GBP	€ 1=0.793 GBP € 1=0.673 GBP € 1=0.775 GBP € 1=0.675 GBP

B. Notes to the consolidated balance sheet

1. Assets held for sale

Since the Company intends to sell CANCOM Ltd., UK, in the near future, all the assets of the company are shown under assets held for sale.

2. Other current financial assets

This item includes bonuses due from suppliers (€ 1,253k), marketing revenue (€ 373k), receivables from employees (€ 310k), claim to the payment of a purchase price (€ 252k), claims in respect of loans (€ 170k), creditors with a debit balance (€ 164k), receivables due from suppliers for returned goods (€ 113k) and receivables from former shareholders (€ 77k).

3. Inventories

Inventories consist almost exclusively of merchandise, particularly hardware components and software. Most of it is stored at the logistics centre in Jettingen-Scheppach, Germany.

Inventories are made up as follows (company-specific breakdown):

€'000	06/30/09	12/31/2008
Finished products and goods	11,710	10,050
Down-payments made	1	30
	11,711	10,080

4. Orders in process

The orders in process are orders calculated according to the percentage of completion method.

5. Prepaid expenses, deferred charges and other current assets

This item mainly consists of other current assets. These mainly include a receivable arising from a copyright levy (€ 1,586k), tax refunds (€ 371k) and compensations by insurances (€ 177k).

The prepaid expenses and deferred charges (€ 570k) also include deferred insurance premiums.

6. Non-current assets (fixed assets)

6.1 Property, plant and equipment

Property, plant and equipment mainly consists of the equipment necessary for the automated small parts warehouse and the manual pallet rack to the value of € 475k, and the data centre of € 435k. Computer equipment, tenant's fittings and office furnishings and equipment are also shown under this item.

6.2 Intangible assets

The intangible assets include purchased software (€ 645k), the brand rights (€ 1,756k), customer list (€ 1,891k) and orders received (€ 28k).

6.3 Goodwill

Goodwill at the balance sheet date mainly includes the relevant figures arising from the inclusion in the consolidated financial statements of CANCOM Deutschland GmbH (€ 11,469k), CANCOM SYSDAT GmbH (€ 4,411k), CANCOM IT Solutions GmbH (€ 3,446k), CANCOM NSG GmbH (€ 2,568k) and CANCOM a + d IT solutions GmbH (€ 1,553k).

6.4 Loans

Loans include the asset value from reinsurance, amounting to € 199k.

7. Deferred tax assets

The deferred tax assets are as follows:

Deferred taxes from	Temporary	Tax loss
	differences	carryover
	€'000	€'000
As at 1 January 2009	394	2,088
Inflow from capitalisation	0	146
Tax expenditure from profit and loss calculation	-67	-41
Tax saving from profit and loss calculation,
included in discontinued operations	0	86
As at 30 June 2009	372	2,279

The deferred tax assets for tax loss carryforwards were capitalised on the basis of the existing loss carryforwards of about € 8.4 million (corporation tax in Germany and other countries) and about € 5,2 million (German trade tax).

The deferred taxes from temporary differences are the result of differences in goodwill (€ 200k), other provisions (€ 62k), intangible assets (€ 61k) and pension provisions (€ 4k).

8. Short-term loans and current component of long-term loans

Short-term loans and the current component of long-term loans shows liabilities due to banks. These comprise the utilisation of credit facilities provided by banks, and those parts of long-term loans that are due for repayment within one year.

9. Other current financial liabilities

This item includes debtors with a credit balance (€ 550k), purchase price liabilities (€ 299k), outstanding bills of charges (€ 235k) and Supervisory Board remuneration (€ 60k).

10. Other provisions

The provisions mainly include copyright levy (€ 1,586k), guarantees and warranties (€ 755k), severance payments and salaries (€ 655k), additional leasing costs (€ 238k), purchase price for shares in affiliated companies (€ 184k), costs for financial statements (€ 96k), contingent risks (€ 64k) and social security contributions and tax on wages and salaries (€ 58k).

The total provisions include long-term provisions of € 1,036k which are disclosed under other long-term liabilities. These are mainly the guarantees and warranties (€ 418k), the provision for severance payments which are legally mandatory in Austria (€ 370k) and anniversaries (€ 165k).

11. Income tax liabilities

Income tax liabilities mainly consist of obligations for 2006 (tax audit), 2007, 2008 and 2009.

12. Other current liabilities

Other current liabilities mainly include sales tax (€ 2,059k), holiday and overtime entitlements (€ 1,309k), tax on wages and salaries and church tax (€ 1,180k), Bonus payments to Board members and employees (€ 960k), trade association payments (€ 235k), social security contributions (€ 164k), wages and salaries (€ 104k) and compensation levy for non-employment of the severely handicapped (€ 72k).

13. Long-term loans

Long-term loans consist purely of liabilities due to banks with a remaining term of at least one year. The part of these loans that is due for repayment within the next twelve months is shown under short-term loans and current component of long-term loans.

14. Capital from profit-participation rights and subordinated loans

Capital from profit-participation rights and subordinated loans includes profit-participation rights of € 6,000,000 (PREPS 2005-1 and PREPS 2005-2), mezzanine capital of € 4,000,000 (Bayern Mezzaninekapital GmbH & Co. KG) and a subordinated loan of € 1,650,000 (Sparkasse Günzburg-Krumbach no. 6005 000 119).

15. Deferred tax liabilities

The deferred tax liabilities are as follows:

	T€
As at 1 January 2009	1,287
Addition from deferred tax liabilities	0
Profit and loss account tax expenses	-29
As at 30 June 2009	1,258

The deferred tax liabilities arise from deviations from the tax balance sheets. They are the result of the revaluation of intangible assets (€ 1,134k), property, plant and equipment (€ 57k), orders in process (€ 27k), other provisions (€ 144k), capital from profit-participation rights and subordinated loans (€ 24k) and pension provisions (€ 2k).

They are recognised at an individual tax rate of between 25 percent (Austrian subsidiary) and 32.98 percent.

16. Pension provisions

Provisions for pensions include provisions for members of the Executive Board (€ 112k) and provisions for pensions of other employees (€ 40k).

Individual defined benefit obligations exist with regard to an Executive Board member. There are also other defined benefit obligations for other employees who joined the company as the result of an acquisition.

The pension obligations for pension schemes in Germany are basically measured according to the number of years of service and the remuneration of the employees in question.

17. Other non-current financial liabilities

Other non-current financial liabilities refers to purchase price liabilities of € 614k and the minority interest in the commercial partnership Home of Hardware GmbH & Co. KG, which amounts to € 482k.

18. Equity capital

Changes in the equity capital are shown in the consolidated statement of changes in equity on page 14/15.

Share capital

The Company's share capital at 30 June 2009 was € 10,390,751, divided into 10,390,751 notional no-par-value shares.

19. Minority interests

Minority interests concern the share of the equity held by the minority shareholders of acentrix GmbH.

20. Capital risk management

The Group manages its capital with the aim of maximising the return to stakeholders through the optimisation of the debt and equity balance. It is ensured that all entities in the Group can operate under the going concern premise. The capital structure of the Group consists of debt, cash and the equity attributable to equity holders of the parent. This comprises issued capital, retained earnings, other reserves, currency translation differences and minority interests.

The goals of the capital management are to ensure that the Group will be able to continue as a going concern and an adequate interest rate for the equity. For implementation the group balances its capital and the overall capital structure.

The capital is monitored on the basis of the economic equity. The economic equity is the balance sheet equity. The borrowed capital is defined as current and non-current financial liabilities, provisions, liabilities connected with disposals, prepaid expenses and deferred charges, and other liabilities.

C. Notes to the consolidated income statement

1. Segment reporting

The CANCOM Group discloses segmental information according to the rules of IAS 14.

The primary segment reporting format of the CANCOM Group is based on geographical segments, since the risks, the return on equity and the earnings potential of the Group are influenced mainly by whether the business is operational in Germany or in the rest of Europe.

The secondary segment reporting format of the CANCOM Group is based on the business segments: business solutions and IT solutions.

Internal sales are recorded on the basis of either their cost or their current market prices, depending on the type of service or product sold.

The CANCOM Group's primary segmental reporting for 2009 includes the following companies in Germany: CANCOM Deutschland GmbH, CANCOM IT Solutions GmbH, CANCOM NSG GmbH, CANCOM SYSDAT GmbH, SYSNET Computer-Systemvertriebsgesellschaft mbH, Home of Hardware GmbH & Co. KG, Home of Hardware Verwaltungs GmbH, CANCOM physical infratructure GmbH, Novodrom People Value Service GmbH, acentrix GmbH, CANCOM Service Center Süd GmbH (formerly CANCOM EN GmbH), CANCOM Financial Services GmbH and CANCOM IT Systeme Aktiengesellschaft.

The Europe segment includes CANCOM Computersysteme GmbH, a + d IT solutions GmbH, CANCOM Ltd., CANCOM (Switzerland) AG and Softmail IT AG (up to 30 June 2008).

The performance pool method is used for internal transfer pricing for transactions between the segments.

The following table shows various disclosures in the consolidated financial statements according to region. All figures were calculated in the same way as the relevant consolidated data; the totals for the segmented data are therefore consistent with the consolidated figures.

Geographical segments		Germany		Europe		Elemination		Consolidation
	06/30/09	06/30/08	06/30/09	06/30/08	06/30/09	06/30/08	06/30/09	06/30/08
	T€	T€	T€	T€	T€	T€	T€	T€
Sale revenues
- External sales	187,429	136,581	10,053	11,905
- Inter-segment sales	3,040	3,502	384	35	-3,424	-3,537
- Total income	190,469	140,083	10,437	11,940	-3,424	-3,537	197,482	148,486
Profit
EBITDA	3,256	3,539	-458	182			2,798	3,721
- Depreciation and amortisation	1,111	840	129	86			1,240	926
Operating result (EBIT)	2,145	2,699	-587	96			1,558	2,795
- Interest income							99	116
- Interest expenditure							-653	-620
- Write-downs of financial assets							0	-5
- Share in profit or loss of joint ventures
accounted for by the equity	0	-1	0	0			0	-1
Result from ordinary activities							1,004	2,285
- Extraordinary result	0	0	0	0			0	0
- Currency differences							8	13
- Income tax							-166	-670
- Discontinued operations	0	0	39	-83			39	-83
Consolidated income for the year							885	1,519
thereof attributable to the shareholders of the parent company							915	1,467
thereof attributable to minority interest							-30	52
Other information					Überleitung2
- Segmet assets1	95,480	80,631	9,369	10,955	2,856	2,984	107,705	94,570
- Current liabilities	43,059	31,157	4,375	5,195	658	932	48,092	37,284
- Long-term liabilities	16,145	16,182	1,725	2,492	1,872	703	19,742	19,377
- Investments1	649	1,834	455	213			1,104	2,047

1 Segment assets and investments including goodwill from consolidation of capital 2 Tax assets

In secondary segment reporting, the IT solutions segment includes CANCOM NSG GmbH, CANCOM SYSDAT GmbH, CANCOM physical infrastructure GmbH, Novodrom People Value Service GmbH, acentrix GmbH, CANCOM Service Center Süd GmbH (formerly CANCOM EN GmbH) CANCOM IT Solutions GmbH and the CANCOM Deutschland GmbH cost centres allocated to them.

The business solutions segment comprises CANCOM IT Systeme Aktiengesellschaft, CANCOM Deutschland GmbH, SYSNET Computer-Systemvertriebsgesellschaft mbH, Home of Hardware GmbH & Co. KG, Home of Hardware Verwaltungs GmbH, CANCOM Computersysteme GmbH, CANCOM a + d IT solutions GmbH, CANCOM (Switzerland) AG, CANCOM Ltd., less the cost centres allocated to CANCOM IT Solutions GmbH.

						Consolidated
06/30/09	06/30/08	06/30/09	06/30/08	06/30/09	06/30/08	06/30/09	06/30/08
T€	T€	T€	T€	T€	T€	T€	T€
98,482	87,674	99,000	60,812
983	1,232	794	726	-1,777	-1,958
99,465	88,906	99,794	61,538	-1,777	-1,958	197,482	148,486
				Überleitung2
53,544	56,833	51,305	34,753	2,856	2,984	107,705	94,570
811	1,713						2,047
		business solutions		IT solutions		Elimination	293 334 1,104

1 Segment assets and investments including goodwill from consolidation of capital 2 Tax assets

Information on dominant customers:

The Siemens AG customers account for over 5 percent of the total sales of the CANCOM Group, and significantly more than 5 percent of the contribution margin.

2. Sales revenues

The sales revenues of € 197,482k include order revenue of € -351k calculated using the POC method.

3. Other operating income

The other operating income is made up as follows:

Total	775	286
Other operating income	38	24
Income not relating to the period	649	215
Rent	88	47
€'000	01/01/ - 06/30/2009	01/01/ - 06/30/2008

Income not relating to the period mainly includes payments received in relation to receivables that had been written off, income from debtors with a credit balance also written off, and income from the reversal of a provision of warranties.

4. Personnel expenses

The personnel expenses are made up as follows:

Total	40,084	32,046
Pension expenses	73	45
Social security contributions	6,267	4,917
Wages and salaries	33,744	27,084
€'000	01/01/ - 06/30/2009	01/01/ - 06/30/2008

5. Other operating expenses

The other operating expenses consist of the following:

€'000	01/01/ - 06/30/2009	01/01/ - 06/30/2008
Office space	2,298	1,771
Insurance and other charges	485	375
Motor vehicles	2,061	2,208
Advertising	882	605
Stock exchange and entertainment expenses	110	336
Hospitality and travelling expenses	809	963
Delivery costs	1,296	922
Third-party services	1,189	1,454
Repairs, maintenance, leasing	779	211
Communication and office expenses	783	565
Legal and consultancy expenses	234	238
Fees and charges, costs of money transactions	232	134
Allowance for bad debts	64	0
Other operating expenses	666	613
Summe	11,888	10,395

6. Interest income/expense

Interest income mainly consists of interest on cash in banks and interest from customers.

7. Income tax

The rate of income tax for German companies is 29.89 percent. This is made up of corporation tax, trade tax and the solidarity surcharge. The divergence between the tax expenses reported and those at the tax rate of CANCOM IT Systeme Aktiengesellschaft arises as follows:

€'000	01/01/ - 06/30/2009	01/01/ - 06/30/2008
Earnings before tax	1,081	2,142
Expected tax at rate to German companies
(29.89 percent; 2008 29.29 percent)	323	627
- Difference from tax paid abroad	32	-28
- Change in the value adjustment of deferred tax assets
on loss carryforwards	-60	3
- Tax-free income	0	45
- Actual income tax not relating to the period	-84	6
- Permanent differences: non-deductible
operating expenses and additions and
reductions due to trade tax	-133	-16
- Other	2	-23
- Tax savings recognised under discontinued
operations	86	56
Total Group income tax	166	670

The actual tax rate is as follows:

15,36 %
166
1,081
€'000

Tax losses not yet utilised and for which no deferred tax claim was recognised in the balance sheet amounted to € 579k (IAS 12.81.e.)

Income tax comprises the income tax paid or owed in the individual countries and also the deferred taxes:

€'000	01/01/ - 06/30/2009	01/01/ - 06/30/.2008
Actual income tax paid	86	179
Deferred taxes
Assets	122	463
Liabilities	-29	28
	93	491
Groupe income tax	179	670

8. Discontinued operations

The impact of discontinued operations on the consolidated income statement is a profit of € 39k (2008: a profit of € 83k).

This amount consists of income (including other operating income) of € 7,093k (2008: € 9,855k), expenditure of € 7,140k (2008: € 9,966k) and pre-tax loss of € 47k (2008: € 111k). The related income tax refund is € 86 (2008: tax refund of € 28k).

The areas are detailed below.

Softmail group:

The net impact of the sale of the Softmail group was recognised under discontinued operations as a profit of € 108k.

CANCOM Ltd.:

The Group intends to sell its interest in CANCOM Ltd., UK in the near future. The entire result of CANCOM Ltd. was therefore recognised under discontinued operations. The figures for 2008 were adjusted accordingly.

The impact on discontinued operations was a profit of € 39k (2008: a loss of € 191k).

9. Minority interests

Minority interests are equivalent to 24.5 percent of the net income of Home of Hardware GmbH & Co. KG (€ 4k) and 49 percent of the net loss made by acentrix GmbH for the financial year 2008 (€ 34k).

D. Notes to the cash flow statement

The consolidated cash flow statement is prepared in accordance with IAS 7 Statement of Cash Flows. This requires that a distinction be made between cash flows from operating activities, investing activities and financing activities. The cash shown in the cash flow statement comprises cash in hand and cash at banks.

The indirect method was used to establish the cash flow from current activities. The cash flow from ordinary activities fell by € 4.4 million compared with the first half of 2008.

The cash resources of € 7,811k include the cash shown in the balance sheet. This comprises cash in hand and cash at banks as well as cash of € 89k from discontinued operations.

E. Other disclosures

1. Related party disclosures

CANCOM IT Systeme Aktiengesellschaft has prepared these consolidated financial statements as the parent company with ultimate control.

According to IAS 24, CANCOM Financial Services GmbH, the joint venture formed in January 2006 with TRS Technology Refresh GmbH, is deemed a related party. By CANCOM Financial Services GmbH the CANCOM Group offers its costumers added value in the field of finance. CANCOM Financial Services GmbH brokers the leasing contracts by TRS Technology Refresh GmbH.

For the purposes of IAS 24, Klaus Weinmann can be considered a related party who can exercise a significant influence on the CANCOM Group, both as an Executive Board member and as a shareholder in CANCOM IT Systeme Aktiengesellschaft. Rudolf Hotter and Paul Holdschik, who also belong to the Executive Board, are further related parties for the purposes of IAS 24, as are the members of the Supervisory Board.

There were no receivables or payables in relation to the Executive Board or the other companies in the CANCOM Group at the balance sheet date.

Since 1 July 2007, a consultancy agreement has been in place between CANCOM IT Systeme Aktiengesellschaft and the Chairperson of its Supervisory Board, Walter von Szczytnicki. The contract was drawn up on 9 March 2007 and approved in accordance with Section 114 of the German Stock Companies Act (Aktiengesetz, AktG), and provides for an annual remuneration of € 60,000. The remuneration in financial 2008 thus amounts to € 60,000.

Transactions with related parties were settled in the same way as arm's length transactions.

2. Shares held by members of the Executive and Supervisory Boards (at the balance sheet date)

Please see page 7 of this report for a list of shareholdings.

3. Equity interests in the Company as defined in Section 20 IV of the German Stock Companies Act (Aktiengesetz, AktG)

In the period from 1 January to 30 June 2009 CANCOM IT Systeme Aktiengesellschaft received no written notice from any shareholder disclosing a majority shareholding as defined in Section 20 of the above Act.

Interim Report

3-Monatszahlen 2007 Q2/2009

Masthead

CANCOM IT Systeme AG Investor Relations

Messerschmittstr. 20 89343 Jettingen-Scheppach

Germany