CANCOM SE — Interim / Quarterly Report 2011

May 13, 2011

Interim Report

Q1/2011

»Leading provider of IT infrastructure and professional services«

Table of contents

Section	Page
Table of contents	02
Key figures	03
Preface	04
Consolidated interim management report Q1	05-11
1) CANCOM's business and the general economic situation 2) Earnings, financial and assets situation of the CANCOM group 3) Shareholdings of the Executive and Supervisory Board 4) Events of particular significance after the reporting date 5) Risk report 6) Opportunities report 7) Forecast	06-07 07-10 10 10 10 10 10-11
Balance sheet	12-13
Income statement	14
Consolidated cash flow statement – IFRS	15
Consolidated statement of changes in equity – IFRS	16
Statement of comprehensive income – IFRS	17
Segment information – IFRS	18-19
Appendix	20-23

CONTENT

Key figures

Overview of key figures CANCOM group in € million	01/01/ - 03/31/2011	01/01/ - 03/31/2010	Changes
Revenue	141,4	114,6	+ 23,4 %
Gross profit	39,7	36,0	+ 10,3 %
Gross margin	28,1 %	31,4 %	- 3,3 %
EBITDA (adjusted)	4,8	2,4*	+ 100,0 %
EBIT (adjusted)	3,8**	1,8**	+ 111,1 %
Net profit before minority interests (adjusted)	2,2**	1,2**	+ 83,3 %
Earnings per share (in € / adjusted)
from continuing operations (diluted)	0,21**	0,11**	+ 90,9 %
Adjusted average number of shares
(in 1,000) (diluted)	10.391	10.321	+ 0,7 %
Employees as of 31 March	2.112	1.987	+ 6,3 %
in € million	03/31/011	12/31/2010	Changes
Balance sheet total	155,1	177,4	- 12,6 %
Equity	52,5	51,0	+ 2,9 %
Equity ratio	33,8 %	28,7 %	+ 5,1 %

CANCOM Group's sales revenues

01/01/ - 03/31/2010 und 01/01/ - 03/31/2011 (in € million)

CANCOM Group's EBITDA (adjusted)

01/01/ - 03/31/2010 und 01/01/ - 03/31/2011 (in € million)

CANCOM Group's EBIT (adjusted)

01/01/ - 03/31/2010 und 01/01/ - 03/31/2011 (in € million)

* adjusted for one-off effects (Earnings from differences from capital consolidation (lucky buy)

** adjusted for one-off effects (Earnings from differences from capital consolidation (lucky buy) and depreciation on intangible assets from purchase price allocation

Note: This overview of key figures is not part of the interim report. Adjusted EBITDA, adjusted EBIT, adjusted net profit and adjusted earnings per share are not defined in IFRS. CANCOM considers adjusted EBITDA, adjusted EBIT, adjusted net profit and adjusted earnings per share to be more suitable indicators of operating performance. It is intended to give readers a clearer picture of the results of operations and ensures greater comparability of data over time.

Preface

Dear shareholders,

CANCOM is continuing to expand. We are delighted to report that in the first quarter of 2011 we have managed to build on the success of the past financial year by producing the best first-quarter figures in the company's history. The positive mood in the economy in general continued in the first few months of this year. The combination of this and, in particular, our good market position, meant that we were able to generate record sales revenues and profits.

Our acquisition of the SAP Hosting and IT Services division of Plaut AG at the end of 2010 enabled us to extend further our expertise in the high-quality consulting and services business. In the first quarter of 2011 we also achieved significant successes in the cloud computing market, with its high growth potential, by entering into a strategic partnership with IBM for the distribution of our CANCOM AHP Private Cloud solution and by winning a Best Cloud Solution Partner award from IBM in 2010.

According to the latest industry barometer of the German Association for Information Technology, Telecommunications and the New Media, BITKOM, the mood in the IT sector continues to be positive. The great majority of companies surveyed expect further year-on-year increases in sales revenues for 2011 as a whole. At CANCOM, we are also very confident about the prospects for the remainder of the year. Our operating strength and our good cash position give us sufficient room for manoeuvre in making acquisitions to drive our growth.

Many thanks for your confidence in CANCOM, and for your continued support.

Kind regards,

Klaus Weinmann, CEO

Consolidated Interim Management Report on consolidated financial statement (page 12 ff)

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 financial and management role for the equity investments held by the CANCOM Group.

Focus of activities and sales markets

One of the three largest independent integrated systems providers in Germany, the CANCOM Group has steadily been transformed over the last few years through strategic acquisitions from a systems house focusing primarily on hardware and software, into an IT architect, IT systems integrator and Managed Service Provider. As a provider of integrated services, its central focus is now on providing IT ser-vices in addition to selling hardware and software from prestigious manufacturers. Its IT services range includes design and integration of IT systems, as well as sys-tem operation.

The CANCOM Group's customer base therefore includes primarily commercial end-users, from independent professionals to medium and large-sized companies and public-sector institutions. Through the e-commerce platform of HOH Home of Hardware GmbH at www.hoh.de, the CANCOM Group provides products and ser-vices to private as well as business customers.

Explanation of the control system used within the Group

To control and monitor the development of the individual subsidiaries, once a month CANCOM analyses, among other things, their sales revenues, gross profit, operating expenditure and operating profit, and compares these key figures 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 investigation.

Research and development activities

Innovation is very important for economic momentum and growth. CANCOM con-centrates its research and development activities on IT growth segments such as Cloud Computing, virtualisation solutions, managed services, online technologies, systems development and process optimisation.

Overview of the CANCOM Group's business performance

The CANCOM Group's consolidated sales revenues for the first quarter of 2011 increased by 23.4 percent year-on-year from € 114.6 million to € 141.4 million. Consolidated gross profits were up 10.3 percent, from € 36.0 million to € 39.7 million. The gross profit margin fell from 31.4 percent to 28.1 percent. Consolidated EBITDA rose by 54.8 percent to € 4.8 million, compared with € 3.1 million in the first quarter of 2010.

Consolidated EBIT was up 40.9 percent year-on-year, from € 2.2 million to € 3.1 million. The consolidated profit for the quarter was € 1.7 million, compared with € 1.4 million in the first quarter of 2010. This resulted in earnings per share of € 0.16, compared with € 0.13 in the same period of 2010.

Significant events and investments

CANCOM has invested about € 1.5 million in a new webshop to expand the e-commerce business.

Employees

As at 31 March 2011 the Group employed 2,112 people.

The employees worked in the following areas (as at 31 March 2011):

Professional services:	1,418
Sales and distribution:	361
Marketing and product services:	38
Purchasing, logistics and order processing:	124
Central services:	171

The personnel expenses in the first three months were as follows (in € '000):

	01/01/-03/31/2011	01/01/-03/31/2010
Wages and salaries	23,389	21,239
Social security contributions	4,252	3,852
Pension provisions	90	110
Total	27,731	25,201

CANCOM Group sales revenues:

year-on-year comparison of first quarter figures, 2010 and 2011 (in € million)

In Germany, the sales revenues for the first three months of 2011 were up 20.1 percent year on year, from € 105.8 million to € 127.1 million.

In international business, the CANCOM Group's sales revenues rose by 62.5 percent, from € 8.8 million to € 14.3 million.

In the e-commerce/trade segment, sales revenues were up 16.9 percent, from € 50.9 million to € 59.5 million. In the IT solutions segment they were up 28.9 percent, from € 63.6 million to € 82.0 million.

The consolidated gross profit for the first three months of 2011 was up 10.3 percent year on year, from € 36.0 million to € 39.7 million.

The gross profit margin fell from 31.4 percent to 28.1 percent, mainly as a result of the growth of the trade business due to constant positive economic climate.

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

a) Earnings position

There was a considerable year-on-year increase in sales revenues and profit in the first three months of 2011 and so realizes the best first quarter in the company's history. The consolidated sales revenues of the CANCOM Group in the first three months of the current year rose by 23.4 percent year on year, from € 114.6 million to € 141.4 million. The organic growth amounted 22.3 percent in the first quarter of 2011.

CANCOM Group's gross profit:

year-on-year comparison of first quarter figures, 2010 and 2011 (in € million)

Consolidated EBITDA for the first three months of 2011 was up 54.8 percent on the same period in 2010, at € 4.8 million compared with € 3.1 million.

CANCOM Group's EBITDA:

year-on-year comparison of first quarter figures, 2010 and 2011 (in € million)

Consolidated EBIT for the first three months of 2011 amounts to € 3.1 million, as compared with € 2.2 million in the first three months of 2010, equivalent to a growth of 40.9 percent.

CANCOM Group's EBIT:

year-on-year comparison of first quarter figures, 2010 and 2011 (in € million)

The net income for the first three months of 2011 amounted to € 1.7 million, in comparison with € 1.4 million in 2010. As a result, earnings per share were € 0.16, compared with € 0.13 for the first three months of 2010.

The order position

In the e-commerce/trade 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.

In the IT solutions segment, orders are often given over long periods. At present, the volume of orders is rising slightly.

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.

Explanations of individual items on the income statement

Further details on items in the income statement are given in the Notes to the consolidated income statement.

b) Financial and assets position

Objectives of financial management

The core objective of the financial management of the CANCOM Group is to safe-guard 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 17.8 percent decrease in current assets between 31 December 2010 and 31 March 2011, from € 120.3 million to € 98.9 million. Cash and cash equivalents are down from € 31.5 million to € 11.8 million. Trade accounts receivable were also down, from € 68.0 million to € 63.7 million.

Non-current assets amount to € 56.1 million at 31 March 2011 remained almost unchanged compared with € 57.2 million at 31 December 2010.

On the liabilities side of the balance sheet, current liabilities are clearly down 25.4 percent on the figure at 31 December 2010, from € 89.8 million to € 67.0 million, mainly as a result of the reduction in trade accounts payable from € 64.4 million to € 45.6 million.

Non-current liabilities, which comprises liabilities with a residual term of at least one year, are down from € 36.6 million to € 35.5 million.

The balance sheet total was down to € 155.1 million as at 31 March 2011, compared with € 177.4 million at 31 December 2010.

The nominal equity capital has been increased from € 51.0 million to € 52.5 million since the start of the year, mainly through transfers to net profits. Overall, this resulted in an equity ratio of 33.8 percent at 31 March 2011 compared with 28.7 percent at 31 December 2010.

Further details of the individual balance sheet items can be found in the Notes to the consolidated balance sheet.

Notes to the statement of cash flows

The cash flow from ordinary activities is typically highly negative during the course of the year, and there was a negative cash flow of € 15.9 million as at 31 March 201. The change in comparison with the same date in 2010 was influenced by the increase of balance between trade accounts receivable and trade accounts payable.

The negative cash flow from investing activities amounts to € 2.4 million compared with a negative cash flow from investing activities of € 8.1 million in the first quar-ter of 2010.

The negative cash flow from financing activities amounts to € 1.2 million compared with a positive cash flow from financing activities of € 1.4 in the first quarter of 2010.

Overall, this results in cash and cash equivalents of € 11.8 million, compared with € 4.2 million in 2010.

3. Shares held by members of the Executive and Supervisory Boards as at 31 March 2011

10,390,751	100%
199,864	1.92%
0	0.00%
	0.06%
261,289	2.51%
260,891	2.51%
0	0.00%
0	0.00%
	6,252

4. Events of particular significance after the reporting date

There were no events of particular significance after the reporting date.

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 2010, starting on page 20. 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 start of the current financial year. Details of the opportunities can be found in the annual report for 2010, starting on page 25.

7. Forecast

The German Institute for Economic Research, DIW, forecasts a sharp increase in Germany's gross domestic product (GDP) for the first quarter of 2011 compared with the previous quarter. The outlook for the year as a whole is also good. Experts from leading German research institutes expect GDP to rise by 2.8 percent this year. This is a significant increase on their previous forecast for economic growth in Germany. The German Federal Government is also optimistic about the outlook, and has increased its forecast for GDP growth in 2011 to 2.6 percent, as compared with the 2.3 percent forecast last autumn.

Gross domestic product in 2011* (real change compared with 2010 as a percentage)

According to the latest market figures from the German IT sector organisation BITKOM, experts expect the German European IT market 2011 to grow by 4.3 percent in 2011, compared with 3.0 percent in 2010.

Growth of 5.6 percent is forecast for the hardware segment, compared with 5.1 percent in 2010. The software segment is expected to grow by 4.5 percent, compared with 3.5 percent in 2010, and the IT services segment is anticipated to in-crease by 3.5 percent, compared with 1.7 percent in 2010.

Trend in the German IT sector in 2011*

(real change in comparison to 2010 as a percentage)

Against the background of the acquisitions made, and in consideration of the Group's positive performance, its good positioning in the growth market of cloud computing and the promising economic outlook, from today's point of view, the Executive Board expects the year 2011 to bring further growth in sales revenues and profits, with a continued positive financial situation.

Jettingen-Scheppach, May 2011 CANCOM IT Systeme AG

The Executive Board

The German SAP services market went up 4.4 percent in 2010 year on year. PAC expects a further significant increase of 7.7 percent in Germany in 2011. CANCOM should also

* Forecast: BITKOM, March 2011

profit from this, since CANCOM Plaut Managed Services GmbH pro-vides SAP users with support for SAP operation as well as with the necessary infra-structure.

In view of the opportunities for future growth in e-commerce, CANCOM is consolidating its activities in the area of e-procurement and customised shops. Custom-ised shops are web-based shops containing a fixed, individual product range. They offer customers the advantage of ensuring that the infrastructure will be consistent for all orders. This in turn offers CANCOM the opportunity for sustained strength-ening of customer loyalty.

CANCOM was early in gearing its business policy to the future IT trends referred to above, and designed its sales and services structure around them. Furthermore CANCOM has expanded its market presence as well as improving its customer proximity in the Germanspeaking countries, and is represented all over Germany and Austria by its many service and consulting locations.

Thanks to its proven expertise and outstanding market position in the IT trend areas described, CANCOM wants to grow faster than the IT market if demand for IT products and services remains steady or continues to increase.

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. Al-though we feel that these expectations are realistic, we cannot guarantee their correctness, especially in our forecast. 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	Notes	03/312011	12/31/2010	Assets
Kurzfristige Vermögenswerte				Current assets
Zahlungsmittel und Zahlungsmitteläquivalente	C.1.	11,832	31,472	Cash and cash equivalents
Forderungen aus Lieferungen und Leistungen	C.2.	63,653	68,014	Trade accounts receivable
Sonstige kurzfristige finanzielle Vermögenswerte	C.3.	3,809	4,663	Other current financial assets
Vorräte	C.4.	13,801	13,363	Inventories
Aufträge in Bearbeitung	C.5.	2,212	730	Orders in process
Rechnungsabgrenzungsposten und				Prepaid expenses and
sonstige kurzfristige Vermögenswerte	C.6.	3,621	2,025	other current assets
Kurzfristige Vermögenswerte, gesamt		98,928	120,267	Total current assets
Langfristige Vermögenswerte				Long-term assets
Sachanlagevermögen	C.7.1.	10,165	9,677	Property, plant and equipment
Immaterielle Vermögenswerte	C.7.2.	17,918	18,860	Intangible assets
Geschäfts- oder Firmenwert	C.7.3.	23,667	23,682	Goodwill
Finanzanlagen	C.7.4.	2,780	3,211	Investments
Ausleihungen	C.7.5.	49	43	Notes receivable/loans
Sonstige finanzielle Vermögenswerte		805	920	Other financial assets
Latente Steuern aus temporären Differenzen	C.8.	388	406	Deferred taxes arising from temporary differences
Latente Steuern aus steuerlichem Verlustvortrag	C.8.	275	294	Deferred taxes arising from tax loss carryover
Sonstige Vermögenswerte		82	81	Other assets
Langfristige Vermögenswerte, gesamt		56,129	57,174	Total long-term assets
Aktiva, gesamt		155,057	177,441	Total assets

Consolidated balance sheet (ifrs) – Equity and liabilities

Zahlenangaben in T€ Passiva	Notes	03/31/2011	12/31/2010	Figures in € '000 Equity and liabilities
Kurzfristige Schulden				Current liabilities
Kurzfristige Darlehen und kurzfristiger Anteil an				Short term debt and
langfristigen Darlehen	C.9.	732	1,196	current portion of long-term debt
Genussrechtskapital und nachrangige Darlehen				Profit-participation capital and subordinated loans
kurzfristiger Anteil		825	413	short-term portion
Verbindlichkeiten aus Lieferungen
und Leistungen		45,605	64,437	Trade accounts payable
Erhaltene Anzahlungen		1,505	1,525	Advanced payments redeived
Sonstige kurzfristige finanzielle Schulden	C.10.	2,391	3,460	Other current financial liabilities
Rückstellungen	C.11.	1,557	1,579	Accrued expenses
Rechnungsabgrenzungsposten		1,417	989	Deferred revenues
Verbindlichkeiten aus Ertragssteuern	C.12.	1,865	1,634	Income tax payable
Sonstige kurzfristige Schulden	C.13.	11,149	14,614	Other current liabilities
Kurzfristige Schulden, gesamt		67,046	89,847	Total current liabilities
Langfristige Schulden				Long-term liabilities
Langfristige Darlehen	C.14.	9,370	9,607	Long-term debt, less current portion
Genussrechtskapital und nachrangige Darlehen	C.15.	14,011	14,364	Profit-participation capital and subordinated loans
Rechnungsabgrenzungsposten	C.16.	4,854	5,048	Deferred revenues
Latente Steuern aus temporären Differenzen	C.17.	4,065	4,309	Deferred taxes from temporary differences
Pensionsrückstellungen	C.18.	80	80	Pension provisons
Sonstige langfristige finanzielle Schulden	C.19.	1,457	1,519	Other long-term financial liabilities
Sonstige langfristige Schulden		1,635	1,654	Other long-term liabilities
Langfristige Schulden, gesamt		35,472	36,581	Total Long-term liabilities
Eigenkapital				Equity
Gezeichnetes Kapital	C.20.	10,391	10,391	Shared capital
Kapitalrücklage	C.20.	15,904	15,904	Additional paid-in capital
Bilanzgewinn (inklusive Gewinnrücklagen)		26,452	24,768	Net profit (incl. retained earnings)
Eigenkapitaldifferenz aus Währungsumrechnung				Currency translation difference
und Kursdifferenz		-331	-134	and exchange rate difference
Eigene Anteile zu Anschaffungskosten	C.20.	0	0	Own shares at cost
Minderheitenanteile	C.21.	123	84	Minority interests
Eigenkapital, gesamt		52,539	51,013	Total equity
Passiva, gesamt		155,057	177,441	Total equity and liabilities

Income statement (IFRS)

Zahlenangaben in T€		01/01/2011	01/01/2010	Figures in € '000
Gewinn- und Verlustrechnung	Notes	-03/31/2011	-03/31/2010	Income Statement
Umsatzerlöse	D.2.	141,419	114,560	Revenues
Sonstige betriebliche Erträge	D.3.	251	1,213	Other operating income
Andere aktivierte Eigenleistungen	D.4.	0		0 Other capitalised services rendered for own account
Gesamtleistung		141,670	115,773	Total operating revenue
Materialaufwand /				Cost of purchased
Aufwand für bezogene Leistungen		-101,971	-79,807	materials and services
Rohertrag		39,699	35,966	Gross profit
Personalaufwand	D.5.	-27,731	-25,201	Personnel expenses
Abschreibungen auf Sachanlagen				Depreciation of property, plant and equipment
und immaterielle Vermögensgegenstände		-1,664	-948	and amortisation of intangible assets
Sonstige betriebliche Aufwendungen	D.6.	-7,201	-7,662	Other operating expenses
Betriebsergebnis		3,103	2,155	Operating income
Zinsen und ähnliche Erträge	D.7.	31	45	Interest and similar income
Zinsen und ähnliche Aufwendungen	D.7.	-602	-461	Interest and other expenses
Abschreibungen auf Finanzanlagen		0	0	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	0	accounted for by the equity method
Währungsgewinne / -verluste		-6	-15	Foreign currency exchange income / losses
Ergebnis vor Ertragsteuern		2,526	1,724	Profit before taxes
Ertragsteuern	D.8.	-803	-338	Income tax expense
Ergebnis nach Steuern aus				After tax profit
aus fortzuführenden Geschäftsbereichen		1,723	1,386	from continuing operations
Ergebnis aus aufgegebenen Geschäftsbereichen	D.9.	0	0	Loss from discontinued operations
Periodenergebnis		1,723	1,386	Net income for the year
davon entfallen auf Gesellschafter				thereof attributable to the
des Mutterunternehmens		1,684	1,382	shareholders of the parent
davon entfallen auf Minderheiten	D.10.	39	4	thereof attributable to minority interests
Durchschnittlich im Umlauf befindliche				Average number of
Aktien (Stück) unverwässert		10,390,751	10,320,738	shares outstanding (basic)
Durchschnittlich im Umlauf befindliche				Average number of
Aktien (Stück) verwässert		10,390,751	10,320,738	shares outstanding (diluted)
Ergebnis je Aktie aus				Earnings per share
fortzuführenden Geschäftsbereichen (unverwässert)		0.16	0.13	from continuing operations (non-diluted)
Ergebnis je Aktie aus				Earnings per share
fortzuführenden Geschäftsbereichen (verwässert)		0.16	0.13	from continuing operations (diluted)
Ergebnis je Aktie aus				Earnings per share
aufgegebenen Geschäftsbereichen (unverwässert)		0.00	0.00	from discontinued operations (non-diluted)
Ergebnis je Aktie aus				Earnings per share
aufgegebenen Geschäftsbereichen (verwässert)		0.00	0.00	from discontinued operations (diluted)

Consolidated cash flow statement (IFRS)

Zahlenangaben in T€		01/01/2011	01/01/2010	Figures in € '000
Kapitalfluss	Notes	-03/31/2011	-03/31/2010	Cashflow
Cashflow aus gewöhnlicher Geschäftstätigkeit:				Cash flow from ordinary activities:
Periodengewinn vor Steuern- und Minderheitenanteilen		2,526	1,724	Net profit for the period before taxes and minority interests
Berichtigungen:				Adjustments:
+/- Abschreibungen auf Sachanlagen und immaterielle				+/- Depreciation of property, plant and
Vermögensgegenstände		1,664	948	equipment, and amortisation of intangible assets
+/- Veränderungen der langfristigen Rückstellungen		-19	-46	+/- Changes in long-term accruals
+/- Veränderungen der kurzfristigen Rückstellungen		7	12	+/- Changes in current accruals
+/- Ergebnis aus dem Verkauf von immateriellen				+/- Gains/losses on the sale of intangible assets,
Vermögenswerten, Sachanlagen und Finanzanlagen		278	-3	property, plant and equipment and financial assets
+/- Zinsaufwand		571	416	+/- Interest expense
+/- Veränderungen der Vorräte		-438	-5,300	+/- Changes in inventories
+/- Veränderungen der Forderungen aus Lieferungen				+/- Changes in trade accounts receivable
und Leistungen sowie anderer Forderungen		2,280	5,542	and other accounts receivables
+/- Veränderungen der Verbindlichkeiten aus Lieferungen				+/- Changes in trade accounts payables
und Leistungen sowie anderer Schulden		-21,822	-17,028	and other accounts payable
+/- Gezahlte und erstattete Zinsen		-124	-101	+/- Interest payments and rebates
+/- Gezahlte und erstattete Ertragsteuern		-801	-429	+/- Income tax payments and rebates
+/- Zahlungsunwirksame Aufwendungen und Erträge		-7	-662	+/- Non-cash expenses and income
Nettozahlungsmittel aus betrieblicher Tätigkeit		-15,885	-14,927	Net cash from operating activities
Cashflow aus Investitionstätigkeit				Cash flow from investing activities
+/- Erwerb von Tochterunternehmen und				+/- Acquisition of subsidiaries
von Eigenkapitalinstrumenten anderer Unternehmen		-1,359	-2,697	and equity instruments of other companies
+/- Beim Kauf von Anteilen erworbene Zahlungsmittel	E	0	-724	+/- Cash from acquisitions
+/- Zahlungen für Zugänge zu immateriellen				+/- Payments for additions to intangible assets as
Vermögenswerten sowie Sachanlagen		-1,298	-4,762	well as property, plant and equipment
+/- Erlöse aus dem Abgang von immateriellen				+/- Income from disposal of intangible assets, property,
Vermögenswerten, Sachanlagen und Finanzanlagen		252	22	plant and equipment and financial assets
+/- Beim Verkauf von Anteilen hingegebene Zahlungsmittel		0	0	- Cash used in disposal of equity holdings
+/- Erhaltene Zinsen		31	45	+/- Interest received
Für Investitionstätigkeit eingesetzte Nettozahlungsmittel		-2,374	-8,116	Net cash used in investing activities
Cashflow aus Finanzierungstätigkeit				Cash flow from financing activities
+/- Aufnahme von langfristigen Finanzschulden		0	1,532	+/- Take-up of long-term financial liabilities
+/- Rückzahlung von langfristigen Finanzschulden				+/- Repayment of long-term financial liabilities
(einschl. kurzfristig gewordene Anteile)		-807	-322	(incl. short-term portions)
+/- Veränderung kurzfristiger Finanzschulden		75	611	+/- Changes in short-term liabilities
+/- Gezahlte Zinsen		-388	-360	+/- Interest paid
+/- Gezahlte Dividenden		0	0	+/- Dividends payed
+/- Einzahlung aus der Veräußerung eigener Anteile	C.21.	0	0	+/- Inflows from sale of own shares
+/- Auszahlung für Erwerb eigener Anteile	C.21.	0	-94	+/- Outflows from purchases of own shares
+/- Ein-/Auszahlungen aus Finanzierungs-Leasingverträgen		-64	-36	+/- Cash inflow / outflow finance lease
+/- Ein-/Auszahlungen aufgegebene Geschäftsbereiche		0	50	+/– Cash inflow/ outflow from discontinued operations
Für Finanzierungstätigkeit eingesetzte Nettozahlungsmittel		-1,184	1,381	Net cash used in financing activities
Nettozu-/abnahme von Zahlungsmitt. u. Zahlungmittelaquivalente		-19,443	-21,662	Net change in cash and cash equivalents
+/- Wechelkursbedingte Wertänderungen		-197	-6	+/- Changes in value resulting from foreign currency exchange
+/- Finanzmittelbestand am Anfang der Periode		31,472	25,836	+/- Cash and cash equivalents as at beginning of period
Finanzmittelbestand am Ende der Periode		11,832	4,168	Cash and cash equivalent sat end of period
Zusammensetzung:				Breakdown:
Liquide Mittel		11,832	4,168	Cash
Liquide Mittel aus aufgegebene Geschäftsbereiche			0	Cash from discontinued operations
		11,832	4,168

Consolidated statement of changes in equity (IFRS)

	Aktien / Shares	Gezeichnetes Kapital / Share capital	Kapitalrücklagen / Additional paid-in capital	Gewinnrücklagen / Retained earnings	Foreign currency translation reserve Rücklage Währungsumrechnung /	Rücklage Kursdifferenz Wertpapiere / Exchange rate difference reserve	Neubewertungsrücklage / Revaluation reserve	Bilanzgewinn / Net profit loss	Eigene Anteile zu Anschaffungskosten / Own shares at acquisition costs	Summe Eigenkapitalgeber Mutterunternehmen / Total investors parent company	Minderheitenanteile / Minority interest	Eigenkapital gesamt / Total equity cash
		units'000 in €'000 in €'000		in €'000		in €'000 in €'000	in €'000		in €'000 in €'000	in €'000 in €'000		in €'000
31. Dezember 2009		10,391 10,391	15,441	122	-279	0	-153	18,507	-165	43,864	5	43,869	31 December 2009
Veränderung der Rücklagen:													Changes in reserves:
Umbuchung Bilanzgewinn/Gewinnrücklage				10,483				-10,483		0		0	Transfer netprofit/retained earnings
Erwerb eigene Anteile									-94	-94		-94	Purchase of own shares
Veräußerung eigener Anteile			463						259	722		722	Sales of own shares
Ausschüttung im Geschäftsjahr								-1,546		-1,546		-1,546	Distribution
Gesamtergebnis der Periode					-10	155		7,820		7,965	78	8,043	Comprehensive income for the period
Erwerb Minderheitenanteile				18						18	129	147	Purchase of minority interests
Effekt aus Abgang Minderheiten										0	-128	-128	Impact of derecognition of minority interests
31. Dezember 2010		10,391 10,391	15,904	10,623	-289	155	-153	14,298	0	50,929	84	51,013	31 December 2010
Veränderung der Rücklagen:													Changes in reserves:
Umbuchung Bilanzgewinn/Gewinnrücklage				0				0		0		0	Transfer netprofit/retained earnings
Ausschüttung im Geschäftsjahr										0		0	Distribution
Gesamtergebnis der Periode					-1	-196		1,684		1,487	39	1,526	Comprehensive income for the period
Erwerb Minderheitenanteile				0						0		0	Purchase of minority interests
Effekt aus Abgang Minderheiten										0		0	Impact of derecognition of minority interests
31. März 2011		10,391 10,391	15,904	10,623	-290	-41	-153	15,982	0	52,416	123	52,539	31 March 2011

Statement of comprehensive income (IFRS)

(in €'000)	01/01/2011 – 03/31/2011	01/01/2010 – 03/31/2010
Periodenergebnis	1,723	1,386	Net income for the period
Übriges Ergebnis			Other income
Unerschied aus Währungsumrechnung	-1	-9	Currency translation difference
Unterschied aus Kursdifferenz Wertpapiere	-281		Exchange rate difference
Ertragsteuern	85	3	Income taxes
Übriges Ergebnis der Periode (nach Steuern)	-197	-6	Other after-tax income for the period
Gesamtergebnis der Periode	1,526	1,380	Comprehensive income for the period
davon entfallen auf Gesellschafter des Mutterunternehmens	1,487	1,376	thereof attributable to the shareholder of the parent
davon entfallen auf Minderheiten	39	4	thereof attributable to the minority interests

Segment information (IFRS)

			e-commerce/trade IT Solutions
	03/31/11	03/31/10	03/31/11	03/31/10
	€'000	€'000	€'000	€'000
Sales revenues
– External sales	59,465	50,935	81,954	63,625
– Intersegment sales	590	1,344	14,753	6,346
– Total sales revenues	60,055	52,279	96,707	69,971
– Cost of purchased materials and services	-51,094	-44,025	-62,205	-41,478
– Personnel expenses	-4,950	-4,447	-21,851	-19,892
– Other operative income and expenses	-1,972	-2,369	-8,571	-5,456
EBITDA	2,039	1,438	4,080	3,145
– calculated depreciation and amortisation	486	392	1,138	518
Operating income (EBIT)	1,553	1,046	2,942	2,627
– Internest income	8	23	17	32
– Interest expenditure	-193	-150	-167	-129
– Income from investments
– Write-downs of financial assets
– Share in profit or loss of joint ventures
accounted for by the equity
Result from ordinary activities	1,368	919	2,792	2,530
– Result from extraordinary activities	0	0	0	0
– Foreign currency exchange gains / losses
Pre-tax profit	1,368	919	2,792	2,530
– Income taxes
– discontinued operations		0
Consolidated income for the year
thereof attributable to the shareholders
of the parent
thereof attributable to minority interest
Other information
– Assets 1)	95,897	53,467	53,459	66,080
– Investments 1)	260	237	1,041	5,524

1) Segment assets and investments including goodwill from consolidation of capital

2) Tax assets

Segment information (IFRS)

Total		Other companies		Reconcilation			consolidated
	03/31/10	03/31/11	03/31/10	03/31/11		03/31/10	03/31/11	03/31/10
	€'000	€'000	€'000	€'000		€'000	€'000	€'000
0	114,560		0
0	7,690		0	-15,343		-7,690
0	122,250		0	-15,343		-7,690	141,419	114,560
0	-85,503		0	11,328		5,696	-101,971	-79,807
	-24,339	-930	-862	0		0	-27,731	-25,201
	-7,825	-422	-618	4,015		1,994	-6,950	-6,449
	4,583	-1,352	-1,480	0		0	4,767	3,103
40	910		38	0		0	1,664	948
	3,673	-1,392	-1,518	0		0	3,103	2,155
83	55		157	-77		-167	31	45
	-279	-319	-349	77		167	-602	-461
				0		0	0	0
	0		0	0		0	0	0
0	0		0	0		0	0	0
	3,449	-1,628	-1,710	0		0	2,532	1,739
	0			0		0	0	0
	0		0	-6		-15	-6	-15
	3,449	-1,628	-1,710	-6		-15	2,526	1,724
				-803		-338	-803	-338
0	0		0	0		0	0	0
							1,723	1,386
							1,684	1,382
							39	4
					Reconcilation 2)
	119,547	4,605	3,865	1,096		3,503	155,057	126,915
20	5,761		2,819				1,321	8,580

NOTES

to the consolidated accounts for the quarter ended 31 March 2011

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 interim consolidated financial statements of the CANCOM Group are drawn up and published in euro.

This interim consolidated financial report is condensed and was drawn up in compliance with IAS 34 Interim Financial Reporting. It should be read in conjunction with the IFRScompliant consolidated financial statements for the financial year 2010, which can be downloaded from www.cancom.de.

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.

3. Accounting and valuation policies

The interim consolidated financial report is compiled using basically the same accounting and valuation methods as those used for the consolidated financial statements for the financial year 2010.

B. Notes to the consolidated balance sheet

1. Other current financial assets

This item includes bonuses due from suppliers (€ 1,603k), a claim to the payment of a purchase price (€ 598k), receivables due from suppliers for returned goods (€ 488k), marketing revenue (€ 363k), creditors with a debit balance (€ 340k), claims in respect of loans (€ 201), receivables from employees (€ 163k), and receivables from former shareholders (€ 53k).

2. Prepaid expenses, deferred charges and other current assets

This item mainly consists of other current assets such as tax refunds (€ 2,143k), receivables from social insurance agency, compensation damages (€ 82k), receivables from the German Federal Employment Agency (€ 43k) and security deposit (€ 10k).

The prepaid expenses and deferred charges (€ 1,150k) also include deferred insurance premiums.

3. Financial assets

Financial assets are shares in Plaut Aktiengesellschaft. CANCOM IT Systeme Aktiengesellschaft has no significant influence on Plaut Aktiengesellschaft. The shares are recognised at the closing price of € 0.819 in the Xetra trading system as at 31 March 2011. The price difference is shown under exchange rate difference in the statement of comprehensive income.

4. Deferred tax assets

The deferred tax assets are as follows:

Deferred tax resulting from	temporary	tax loss
	differences	carryforward
	€'000	€'000
As at January 2011	406	294
Zugang Addition from revaluation of financial
instruments recognised directy in equity	17	0
Tax expenditure from profit and loss calculation	-35	-19
As at 31 March 2011	388	275

As at 31 March 2011, the CANCOM Group had corporation tax loss carryovers of € 10.0 million and trade tax loss carryovers of € 9.1 million. The unused corporation tax losses for which no deferred tax claim was recognised in the balance sheet amounted to € 9.1 million, and the trade tax loss carryovers for which no deferred tax claim was recognised amounted to € 8.1 million.

The amounts referred to include components of € 8.7 million (corporate tax) and € 8.1 million (trade tax), which have been called into question because of the EU Commission's legal interpretation of the restructuring clause in Section 8 c of the German Corporate Tax Act (Körperschaftsteuergesetz, KStG) and cannot be used at present. If this amount cannot ultimately be used, the loss carryovers will amount to € 0.4 million (corporate tax) and € 0.0 million (trade tax).

The deferred taxes from temporary differences are the result of other provisions (€ 147k), differences in goodwill (€ 134k), elimination of sales within the Group (€ 66k) and intangible assets (€ 21k).

5. Other current financial liabilities

This item includes debtors with a credit balance (€ 1,244k), outstanding bills of charge (€ 752k), purchase price liabilities (€ 345k) and liabilities to the Supervisory Board (€ 50k).

6. Other provisions

Provisions mainly includes guarantees and warranties (€1,508k), the price of shares in affiliated companies (€ 1,267k), severance payments and salaries (€ 917k), additional leasing costs (€ 427k), contingent risks (€ 191k) and provisions for financial statement costs (€ 94k).

The total provisions include long-term provisions of € 2,901k, which are disclosed at the amount of € 1,266k under other non-current financial liabilities and at the amount of € 1,635k under other non-current liabilities. They are mainly purchase price liabilities (€ 1,266k), a provision for guarantees and warranties (€ 706k), a provision for severance payments which are legally mandatory in Austria (€ 467k), anniversaries (€ 184k), additional leasing costs (€ 139k), provisions for part-time employment prior to retirement (€ 95k) and provisions for contingent risks (€ 44k).

7. Other current liabilities

Other current liabilities mainly include bonus payments to Board members and employees (€ 3,040k), sales tax (€ 2,604k), holiday and overtime entitlements (€ 2,150k), tax on wages and salaries and church tax (€ 1,771k), trade association payments (€ 911k), wages and salaries (€ 152k), social security contributions (€ 95k) and compensation levy for non-employment of the severely handicapped (€ 43k).

8. Deferred tax liabilities

The deferred tax liabilities are as follows:

As at 31 March 2011	4,065
profit and loss account - tax expenses	-176
disposal from revaluation of financial instruments recognised directly in equity	-68
As at January 2011	4,309
	€'000

The deferred tax liabilities arise from deviations from the tax balance sheets. They are the result of the revaluation of intangible assets (€ 4,021k), capital from profit-participation rights and subordinated loans (€ 18k), orders in process (€ 13k), property, plant and equipment (€ 8k), other provisions (€ 3k) and pension provisions (€ 2k).

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

C. Notes to the consolidated income statement

1. Segment information (see page 17-18)

For a description of the segments subject to mandatory reporting, please see page 70 of CANCOM's annual report for 2010.

Reconciliation

Reconciliation shows items not directly connected with the operating segments and the other companies. They include sales within the segments, and the income tax expense.

The income tax expense is not a component of the profits of the operating segments. Since the tax expense is allocated to the parent company where the parent company is the taxable entity, the allocation of the income tax does not exactly correspond to the structure of the segments.

Information on geographical regions

	Sales revenues according to costumer location		Sales revenues according to company location
	03/31/2011	03/31/2010	03/31/2011	03/31/2010
	€'000	€'000	€'000	€'000
Germany	123,562	103,913	127,125	105,760
Outside Germany	17,857	10,647	14,294	8,800
Group	141,419	114,560	141,419	114,560

	Long-term assets
	03/31/2011	03/31/2010
	€'000	€'000
Germany	50,297	39,877
Outside Germany	2,340	3,630
Group	52,637	43,507

Non-current assets includes property, plant and equipment, intangible assets, goodwill and other non-current assets. Financial instruments and deferred tax claims are not included.

2. Other operating income

The other operating income is made up of the following:

in €'000	01/01/ - 03/31/2011	01/01/ - 03/31/2010
Rent	2	22
Earnings from differences from consolidation of capital	0	662
Income not relating to the period	118	377
Deferrals from government grants	116	77
other operating income	15	75
Total	251	1.213

Income not relating to the period mainly includes income from the reduction of allowances for bad debts on accounts receivable and the proceeds of the sale of non-current assets.

3. Personnel expenses

The personnel expenses consist of the following:

Total	27,731	25,201
Pension expenses	90	110
Social security contribution	4,252	3,852
Wages and salaries	23,389	21,239
in €'000	01/01/ - 03/31/2011	01/01/ - 03/31/2010

4. Other operating expenses

The other operating expenses consist of the following:

in €'000	01/01/ - 03/31/2011	01/01/ - 03/31/2010
Office space	1,346	1,557
Insurance and other charges	223	290
Motor vehicles	1,518	1,391
Advertising	455	520
Stock exchange and entertainment expenses	141	150
Hospitality and travelling expenses	661	543
Delivery costs	814	810
Third-party services	573	752
Repairs, maintenance, leasing	224	338
Communication and office expenses	508	444
Legal and consultancy expenses	198	362
Fees and charges, costs of money transactions	169	150
Allowance for bad debts	17	12
Other operating expenses	354	343
Total	7,201	7,662

5. Income tax

The rate of income tax for German companies was 30.04 percent (2010: 31.54 percent). This is made up of corporation tax, trade tax and the solidarity surcharge. The reduction in the income tax rate is owing to the reduction of the average rate of trade tax. The divergence between the tax expenses reported and those at the tax rate of CANCOM IT Systeme Aktiengesellschaft is shown below:

in €'000	01/01/ - 03/31/2011	01/01/ - 03/31/2010
Earnings before tax	2,487	1,720
Expected tax rate at to German companies
(30,04 %; 2010: 31,54 %)	747	542
- Difference from tax paid abroad	-6	-22
- Change in the value adjustment
of deferred tax assets on loss carryforwards	21	-28
- Tax free income	-1	0
- Actual income tax not relating to the period	-6	-8
- Permanent differences: non-deductible
operating expenses and additions and
reductions due to trade tax	51	54
- Earnings from differences from
consolidation of capital	0	-209
- Others	-3	9
Total Group income tax	803	338

The actual tax rate is calculated as follows:

Actual tax expense rate	32.29%
Income tax	803
Income before tax	2,487
	€'000

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

Groupe income tax	803	338
	-123	6
Liabilities	-176	-60
Assets	53	66
deferred taxes:
Actual income tax paid	926	332
in €'000	01/01/ - 03/31/2011	01/01/ - 03/31/2010

6. Minority interests

Minority interests account for 49 percent of acentrix GmbH's net income for the year (€ 39k).

D. Other disclosures

1. Related party disclosures

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, the other Executive Board member, is also a related partiy 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. Hence the remuneration paid in the financial year 2011 amounted 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 9 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 first quarter of 2011 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 3-months-report

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CANCOM IT Systeme AG Investor Relations

Messerschmittstr. 20 89343 Jettingen-Scheppach

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