CANCOM SE — Interim / Quarterly Report 2012

May 11, 2012

3-months-report 2012

»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) Business and the generel 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 reoprting date 5) Risk report 6) Opportunities report 7) Forecast	06-07 08-09 10 10 10 10 10-11
Balance sheet	12-13
Statement of comprehensive income	14
Consolidated cash flow statement	15
Consolidated statement of changes in equity	16
Statement of comprehensive income	17
Segment information	18-19
Appendix	20-23

CONTENT

Key figures

Overview of key figures CANCOM group
in € million	01/01/ - 31/03/2012	01/01/ - 31/03/2011	Changes
Revenue	141.1	124.6	+ 13.2 %
Gross profit	42.1	37.9	+ 11.1 %
EBITDA	7.0	4.7	+ 48.9 %
EBITDA-Marge in %	5.0 %	3.8 %	+ 1.2 %
EBIT	5.3	3.1	+ 71.0 %
Net profit for the period	2.1	1.7	+ 23.5 %
Earnings per share (in €)
from continuing operations (diluted)	0.26	0.17	+ 52.9 %
Average number of shares
(in 1,000) (diluted)	10,391	10,391	0 %
Employees as of 31 March	1,981	2,020	- 1.9 %
in € million	31.03.2012	31.12.2011	Changes
Balance sheet total	180.5	194.9	- 7.4 %
Equity	63.3	60.9	+ 3.9 %
Equity ratio in %	35.1 %	31.2 %	+ 3.9 %

CANCOM Group's sales revenues

3 months (01/01 - 31/03) (in € million)

CANCOM Group's EBITDA

3 months (01/01 - 31/03) (in € million)

CANCOM Group's EBIT

3 months (01/01 - 31/03) (in € million)

Preface

Dear Shareholders,

nFollowing the record results achieved in 2011, the CANCOM Group made a very good start to the current financial year. The first quarter results are convincing evidence of the Group's impressive performance. Consolidated sales revenues are up 13.2 percent, underlining CANCOM's steady growth, and the Group's continuing profitability is demonstrated by the 48.9 percent increase in earnings before interest, tax, depreciation and amortisation (EBITDA). The price of the CANCOM share jumped at the end of the quarter.

The CANCOM strategy clearly concentrates on high-earnings and high-growth market segments, with a corporate portfolio focused on the IT trends of the future. Our objective of achieving an EBITDA margin of 5 percent within the Group in the medium term is therefore already within reach. The establishment of the new company CANCOM cloud solutions GmbH, at the beginning of the year, brings the Group another step closer to becoming the leading private cloud solutions architect and managed services provider. All the Group's managed services and cloud solutions are to be concentrated in the new company immediately.

According to the latest economic survey by the German Federal Association for Information Technology, Telecommunications and New Media, BITKOM, the positive mood in the IT sector is set to continue. The majority of companies surveyed expect an increase in revenues over the year 2012 as a whole in comparison with 2011. BITKOM anticipates that this growth will be driven by technologies such as cloud computing, and by the increase in mobile Internet use via tablet computers or smartphones. With its portfolio of products and services, CANCOM is well placed for future growth. Our operating strength and our comfortable cash position offer great opportunities to drive the Group's growth, both organically and through acquisitions.

We would like to thank our shareholders for their confidence in us, and we look forward to shaping CANCOM's success into the future.

Yours sincerely

Klaus Weinmann, CEO

1. Business and operating environment

Organisational and legal structure of the CANCOM Group

CANCOM AG, based in Munich, 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 CAN-COM Group is an IT architect, systems integrator and managed services provider. As a provider of integrated services, its central focus is on providing IT services in addition to distributing hardware and software from prestigious manufacturers. Its range of IT services includes designing of IT architectures and landscapes, and designing and integration of IT systems, as well as systems operation.

The CANCOM Group's customer base therefore primarily includes commercial end-users, from independent professionals and medium-sized companies to large companies and public-sector institutions.

Explanation of the control system used within the Group

To control and monitor the performance of the individual subsidiaries, once a month CANCOM analyses, inter alia, 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 investigation.

Research and development activities

Innovation is of the utmost importance in stimulating economic momentum and growth. However, as CANCOM is purely a services and trading company, it does not undertake any research activities. Development work is very limited and is principally for the Group's own purposes. Its focus includes software solutions and applications in IT growth areas such as cloud computing, virtualisation, mobile solutions, IT security and managed services.

Developments in the first quarter of 2012 focused on the online segment and on a new ERP system for a subsidiary.

The performance of the IT sector and the economy as a whole

Following a decline in GDP in Germany in the fourth quarter of 2011, in the first quarter of the current year the early indications are for slight year-on-year growth of 0.1 percent.

According to the latest economic survey by the German IT sector organisation BITKOM, just under three-quarters of German providers of IT, telecommunications and electronic entertainment equipment recorded a year-on-year increase in sales revenues in the first quarter of 2012. In the first quarter of 2012 the BITKOM sector index was up on the fourth quarter of 2011, and it is currently significantly higher than the Ifo Business Climate Index for the German economy as a whole.

Overview of the CANCOM Group's business performance

In the first quarter of 2012, the CANCOM Group again recorded a significant year-on-year jump in sales revenues and profits. In fact, this is the best quarter in the Company's history.

The figures for the first quarter of 2012 and the comparative figures for 2011 had to be adjusted in compliance with International Financial Reporting Standards (IFRS) to take into account the sale of HOH Home of Hardware GmbH and CANCOM Ltd. UK, so that these business units are now accounted for as discontinued operations. Details can be found in the notes to the consolidated accounts.

The CANCOM Group's consolidated sales revenues for the first quarter of 2012 were up 13.2 percent year on year to € 141.1 million, compared with € 124.6 million in the first quarter of 2011. The consolidated gross profit was up 11.1 percent from € 37.9 million to € 42.1 million. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) were up 48.9 percent year on year, from last year's € 4.7 million, with an EBITDA margin of 5.0 percent, compared with 3.8 percent in the first quarter of 2011. Consolidated EBIT rose by 71.0 percent, from € 3.1 million in the first quarter of 2011 to € 5.3 million in 2012. The consolidated profit for the period was € 2.1 million, compared with € 1.7 million in the first quarter of 2011. This resulted in earnings per share from continuing operations of € 0.26, compared with € 0.17 in the same period of 2011.

Significant events and investments in the reporting period

Since 5 March 2012, the former CANCOM subsidiary CANCOM Plaut Managed Services GmbH has been operating under the name of CANCOM cloud solutions GmbH.

In a meeting on 20 March 2012, the Supervisory Board of CANCOM AG approved the sale of the Group's wholly-owned subsidiary CANCOM Ltd., UK. The reason for selling the company was to allow the Group to focus on the higher-margin business-to-business segment. Since the company had already been allocated to discontinued operations since the second quarter of 2011, and the main impact of this was taken into account in the financial statements for 2011, the sale will not have any great impact on the Group's cash and profit situation for the current year.

Employees

As at 31 March 2012, the CANCOM Group employed 1,981 people.

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

1,359
339
283

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

	First quarter 2012	First quarter 2011
Wages and salaries	24,579	22,668
Social security contributions	4,159	4,195
Pension provisions	103	87
Total	28,841	26,950

2. The earnings, financial and assets position of the CANCOM Group

a) Earnings position

The CANCOM Group achieved a significant increase in sales revenues and profits in the first three months of 2012. Consolidated sales revenues were up 13.2 percent year on year, from € 124.6 million to € 141.1 million.

CANCOM Group sales revenues: year-on-year comparison of first-quarter figures, 2011 and 2012 (in € million)

In Germany, sales revenues were up 21.1 percent, from € 110.3 million to € 133.6 million.

In international business, the Group's sales revenues rose 47.6 percent, from € 14.3million to € 7.5 million.

In the e-commerce segment, sales revenues were up 11.5 percent to € 37.8 million, in comparison with € 42.7 million in 2011. In the IT solutions segment they were up 26.0 percent, from € 82.0 million to € 103.3 million.

The consolidated gross profit for the first three months of 2012 was up 11.1 percent in comparison with 2011, from € 42.1 million to € 37.9 million. The gross profit margin fell from 30.4 percent to 29.8 percent.

CANCOM Group gross profit: year-on-year comparison of first-quarter figures, 2011 and 2012 (in € million)

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) were up 48.9 percent in the first three months of 2012 to € 7.0 million, in comparison with € 4.7 million in the first quarter of 2011.

CANCOM Group EBITDA: year-on-year comparison of first-quarter figures, 2011 and 2012 (in € million)

Consolidated earnings before interest and tax (EBIT) were up 71.0 percent, from € 3.1 million to € 5.3 million.

CANCOM Group EBIT: year-on-year comparison of first-quarter figures, 2011 and 2012 (in € million)

The net income for the first three months of 2012 rose to € 1.7 million, compared with € 2.1 million in 2011. As a result, earnings per share from continuing operations in the first three months of 2012 were € 0.26, compared with € 0.17 in the same period of 2011.

CANCOM Group earnings per share

The order position

In the e-commerce 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 continues to be healthy.

Due to the stable services business – which now accounts for around two-thirds of the consolidated gross profits (total output less materials costs and services rendered) – as well as the healthy condition of the balance sheet, the management feels the Group is in a good position within the IT sector.

Explanations of individual items on the statement of income

Details on items in the statement of income are given in the notes to the consolidated statement of income.

b) Financial and assets 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 the highest possible credit standing to ensure favourable refinancing rates.

Notes on the capital structure

On the assets side of the consolidated balance sheet, there was a decrease in current assets between 31 December 2011 and 31 March 2012, from € 140.4 million to € 125.6 million. Cash and cash equivalents were down from € 44.4 million to € 28.3 million, owing to seasonal variations. Trade accounts receivable rose from € 72.2 million to € 81.8 million, but inventories were reduced from € 15.0 million to € 9.2 million.

Non-current assets as at 31 March 2012 were almost unchanged, at € 55.0 million, compared with € 54.5 million as at 31 December 2011.

The liabilities side of the balance sheet shows a significant reduction in current liabilities, which are down from € 110.0 million to € 95.5 million. This is mainly the result of a reduction in trade accounts payable from € 72.9 million to € 55.9 million.

Non-current liabilities, consisting of liabilities with a residual term of at least one year, are down from € 24.2 million to € 21.7 million.

The total assets are down to € 180.5 million as at 31 March 2012, compared with € 194.9 million as at 31 December 2011.

The nominal equity capital has been increased from € 60.9 million to € 63.3 million since the start of the year, mainly through transfers to net profits. Overall, this resulted in an equity ratio of 35.1 percent at 31 March 2012, compared with 31.2 percent at 31 December 2011.

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 negative during the year, and there was a negative cash flow of € 14.2 million as at 31 March 2012, compared with € 15.9 million in the same period of 2011. The change in comparison was influenced by the increase of balance between trade accounts receivable and trade accounts payable.

There was a negative cash flow from investing activities of € 1.0 million, compared with a negative cash flow of € 2.4 million in the first three months of 2011.

There was a negative cash flow from financing activities of € 1.0 million, compared with a negative cash flow of € 1.2 million in the first three months of 2011.

Overall, this resulted in cash and cash equivalents of € 28.3 million, compared with € 11.8 million in 2011.

3. Shares held by members of the Executive and Supervisory Boards as at 31 March 2012

Total number of shares:	10,390,751	100%
Executive Board:
Klaus Weinmann	209,864	2.00%
Rudolf Hotter	0	0.00%
Supervisory Board:
Walter von Szczytnicki	6,252	0.1%
Stefan Kober	261,289	2.50%
Raymond Kober	260,891	2.50%
Walter Krejci	0	0.00%
Regina Weinmann	0	0.00%
Petra Neureither*	11,511	0.1%
* Shares for PEN GmbH

6. Opportunities for future development

There have been no major changes in the opportunities for future development at CANCOM since the start of the current financial year. Details of the opportunities report can be found in the annual report for 2011, starting on page 25.

7. Forecast

The German Economics Ministry is of the view that the German economy is gradually emerging from the dip, and stands a good chance of starting to grow again in the spring. According to the Ministry, there are various economic indicators that point to this. For the year 2012 as a whole, most experts are forecasting growth of between 0.5 percent and 1.0 percent.

Gross domestic product, Germany, 2012

(real change compared with 2011, as a percentage)

* Forecast: Deutsche Bank Economic Research, 11 April 2012

According to the latest market figures from the Federal Association for Information Technology, Telecommunications and New Media (BITKOM) experts anticipate that growth in the German IT market will remain steady at 3.1 percent.

They forecast growth of 3.0 percent for the IT hardware segment and 4.4 percent for the software segment, compared with 1.3 percent and 5.1 percent respectively in 2011. The IT services segment is expected to grow by 2.5 percent, compared with 3.2 percent in 2011.

4. Events of particular significance after the reporting date

There were no events of particular importance after the reporting date of 31 March 2012 up to the time this management report was prepared by the Executive Board.

5. Risks of future development

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 2011, starting on page 20. The annual report can be downloaded from www.cancom. de or obtained free of charge from the Company.

Performance of the German IT sector in 2012

(real change in comparison with 2011, as a percentage)

Forecast: BITKOM, February 2012

CANCOM was early in gearing its business policy to future IT trends, and designed its sales and services structure around them. The expansion of the e-commerce business and the new CANCOM webshop have brought further reductions in process and transaction costs both for customers and for the CANCOM Group, which should result in greater profitability of the Group's trading business.

CANCOM has also significantly expanded its market presence as well as improving its customer proximity in the German-speaking areas, and is represented all over Germany and Austria by its many service and consulting locations. CANCOM plans to consolidate its market position in the IT environment in the German-language areas through targeted acquisitions. The market environment continues to offer good conditions for this strategy.

CANCOM aims to continue growing faster than the IT market, using its proven expertise and outstanding market position in the IT trend segments referred to above.

Owing to the investments in the e-commerce segment and the Group's good positioning in the growth market of cloud computing, the Executive Board expects the sales revenues and profits of the e-commerce division and the IT solutions segment to rise further and the demand for IT products and services to remain steady or indeed rise.

In view of the Group's positive performance in 2011, the Executive Board currently expects that, provided economic conditions continue to be positive in 2012, the sales revenues and profits of the Group as a whole will rise, and that its financial situation will continue to be positive.

Munich, Germany, May 2012

CANCOM AG

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 AG. These statements are identifiable by words and phrases such as "plan", "intend", "will", "expect", "feel" etc. and are based on current expectations, assumptions and assessments. Although 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

Figures in € '000
Assets	Notes	31/03/12	31/12/11	31/03/11
Current assets
Cash and cash equivalents		28,313	44,365	11,832
Assets held for sale		0	2,080	0
Trade accounts receivable		81,815	72,212	63,653
Other current financial assets	B.1.	3,552	5,297	3,809
Inventories		9,216	14,992	13,801
Orders in process		1,344	572	2,212
Prepaid expenses and other current assets	B.2.	1,361	861	3,621
Total current assets		125,601	140,379	98,928
Long-term assets
Property, plant and equipment		13,219	12,901	10,165
Intangible assets		15,872	15,928	17,918
Goodwill		23,667	23,667	23,667
Investments		70	70	2,780
Notes receivable/loans		52	52	49
Other financial assets		1,277	1,229	805
Deferred taxes arising from temporary differences	B.3.	734	628	388
Deferred taxes arising from tax loss carryover	B.3.	1	8	275
Other assets		31	29	82
Total long-term assets		54,923	54,512	56,129
Total assets		180,524	194,891	155,057

Consolidated balance sheet (ifrs) – Equity and liabilities

Figures in € '000
Equity and liabilities	Notes	31/03/12	31/12/11	31/03/11
Current liabilities
Short term debt and current portion of long-term debt		3,814	2,324	732
Profit-participation capital and subordinated loans short-term portion		6,920	6,824	825
Trade accounts payable		55,909	72,906	45,605
Advanced payments redeived		1,515	1,872	1,505
Other current financial liabilities	B.4.	1,546	1,487	2,391
Accrued expenses	B.5.	1,833	1,555	1,557
Deferred revenues		1,285	1,042	1,417
Income tax payable		8,112	6,008	1,865
Other current liabilities	B.6.	14,612	13,666	11,149
Liabilities in connection with assets held for sale		0	2,080	0
Total current liabilities		95,546	109,764	67,046
Long-term liabilities
Long-term debt, less current portion		5,663	7,358	9,370
Profit-participation capital and subordinated loans		6,415	6,797	14,011
Deferred revenues		4,250	4,538	4,854
Deferred taxes from temporary differences	B.7.	2,593	2,653	4,065
Pension provisons		87	87	80
Other long-term financial liabilities	B.8.	1,055	1,081	1,457
Other long-term liabilities	B.5.	1,646	1,701	1,635
Total Long-term liabilities		21,709	24,215	35,472
Equity
Shared capital		10,391	10,391	10,391
Additional paid-in capital		15,904	15,904	15,904
Net profit (incl. retained earnings)		36,780	34,735	26,452
Currency translation difference		-11	-291	-331
Minority interests		205	173	123
Total equity		63,269	60,912	52,539
Total equity and liabilities		180,524	194,891	155,057

Statement of comprehensive income (IFRS)

			Q1
Figures in € '000		01/01/2012	01/01/2011
Income Statement	Notes	-31/03/2012	-31/03/2011
Revenues		141,100	124,620
Other operating income	D.1.	189	231
Other capitalised services rendered for own account		471	0
Total operating revenue		141,760	124,851
Cost of purchased materials and services		-99,643	-86,972
Gross profit		42,117	37,879
Personnel expenses	D.2.	-28,841	-26,950
Depreciation of property, plant and equipment
and amortisation of intangible assets		-1,702	-1,564
Other operating expenses	D.3.	-6,261	-6,249
Operating income		5,313	3,116
Interest and similar income		108	31
Interest and other expenses		-573	-575
Foreign currency exchange income / losses		-1	8
Profit before taxes		4,847	2,580
Income tax expense	D.4.	-2,095	-794
After tax profit
from continuing operations		2,752	1,786
Loss from discontinued operations	D.5.	-674	-63
Net income for the year		2,078	1,723
thereof attributable to the shareholders of the parent		2,045	1,684
thereof attributable to minority interests	D.6.	33	39
Average number of shares outstanding (basic)		10,390,751	10,390,751
Average number of shares outstanding (diluted)		10,390,751	10,390,751
Earnings per share
from continuing operations (non-diluted)		0.26	0.17
Earnings per share
from continuing operations (diluted)		0.26	0.17
Earnings per share
from discontinued operations (non-diluted)		-0.06	-0.01
Earnings per share
from discontinued operations (diluted)		-0.06	-0.01

Consolidated cash flow statement (IFRS)

Figures in € '000 Cashflow	01/01/2012 -31/03/2012	01/01/2011 -31/03/2011
Cash flow from ordinary activities:
Net profit for the period before taxes and minority interests	4,847	2,580
Adjustments:
+/- Depreciation of property, plant and equipment, and amortisation of intangible assets	1,702	1,564
+/- Changes in long-term accruals	-1,249	-19
+/- Changes in current accruals	278	14
+/- Gains/losses on the sale of intangible assets,
property, plant and equipment and financial assets	-401	276
+ Interest expense	465	544
+/- Changes in inventories	5,776	-574
+/- Changes in trade accounts receivable and other accounts receivables	-10,134	1,235
+/- Changes in trade accounts payables and other accounts payable	-15,515	-20,532
+/- Interest payments and rebates	-59	-97
+/- Income tax payments and rebates	-147	-801
+/- Non-cash expenses and income	0	-7
+/- Inflow/outflow from discontinued operations	260	-62
Net cash from operating activities	-14,177	-15,879
Cash flow from investing activities
+/- Acquisition of subsidiaries and equity instruments of other companies	0	-1,359
+/- Cash from acquisitions	0	0
- Payments for additions to intangible assets as well as property, plant and equipmen	-2,024	-1,277
+ Income from disposal of intangible assets, property, plant and equipment and financial assets	461	253
- Cash used in disposal of equity holdings	-402	0
+ Interest received	108	31
+/- Inflow/outflow from discontinued operations	950	0
Net cash used in investing activities	-907	-2,352
Cash flow from financing activities
+ Take-up of long-term financial liabilities	0	0
- Repayment of long-term financial liabilities (incl. short-term portions)	-680	-807
+/- Changes in short-term liabilities	20	46
- Interest paid	-345	-388
- Dividends payed	0	0
+/- Cash inflow / outflow finance lease	36	-64
Net cash used in financing activities	-969	-1,213
Net change in cash and cash equivalents	-16,053	-19,444
+/- Changes in value resulting from foreign currency exchange	1	-196
+/- Cash and cash equivalents as at beginning of period	44,365	31,472
Cash and cash equivalent sat end of period	28,313	11,832
Breakdown:
Cash	28,313	10,979
Cash from discontinued operations	0	853
	28,313	11,832

Consolidated statement of changes in equity (IFRS)

	Shares	Share capital	Additional paid-in capital	Retained earnings	Foreign currency translation reserve	Exchange rate difference reserve	Revaluation reserve	Net profit loss	Own shares at acquisition costs	Minority interest	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
31. December 2010		10,391 10,391	15,904	10,623	-289	155	-153	14,298	50,929		84 51,013
Changes in reserves
Transfer netprofit/retained earnings				6,465				-6,465	0		0
Distribution									-1,559 -1,559		-75 -1,634
Comprehensive income for the period					-2	-155		11,526	1,369		164 11,533
31. December 2011		10,391 10,391	15,904	17,088	-291	0	-153	17,800	60,739		173 60,912
Changes in reserves:
Transfer netprofit/retained earnings				0				0	0		0
Distribution								0	0		0
Comprehensive income for the period					280	0		2,149	2,429	32	2,461
31. March 2012		10,391 10,391	15,904	17,088	-11	0	-153	19,845	63,064		205 63,269

Statement of comprehensive income (IFRS)

		Q1
in €'000	01/01/2012 -31/03/2012	01/01/2011 -31/03/2011
Net income for the period	2,182	1,723
Other income
Currency translation difference	-3	-1
Exchange rate difference	0	-281
Income taxes	0	85
Other after-tax income for the period	-3	-197
Comprehensive income for the period	2,075	1,526
thereof attributable to the shareholder of the parent	2,042	1,487
thereof attributable to the minority interests	33	39

Segment information (IFRS)

		e-commerce		IT Solutions
	31/03/12	31/03/11	31/03/12	31/03/11
	€'000	€'000	€'000	€'000
Sales revenues
– External sales	37,819	42,666	103,281	81,954
– Intersegment sales	1,071	581	17,924	14,753
– Total sales revenues	38,890	43,247	121,205	96,707
– Cost of purchased materials and services	-31,954	-36,086	-80,760	-62,205
– Personnel expenses	-4,244	-4,169	-23,472	-21,851
– Other operative income and expenses	-555	-1,101	-10,595	-8,509
EBITDA	2,137	1,830	6,378	4,142
– scheduled depreciation and amortisation	-276	-324	-1,382	-1,200
Operating Income (EBIT)	1,861	1,506	4,996	2,942
– Interest income	62	8	9	17
– Interest expenditure	-182	-166	-141	167
– Income from equity investments
Profit/loss from ordinary activities	1,741	1,348	4,864	3,126
– Foreign currency exchange gains / losses
Pre-tax profit/loss	1,741	1,348	4,864	3,126
– Income taxes
– Discontinued operations	-570	-63	0	0
Consolidated profit/loss for the period
thereof attributable to the shareholders
of the parent
thereof attributable to minority interest
Other information
– Assets 1)	104,804	95,897	58,029	53,459
– Investments 1)	795	260	1,138	1,041

Segment information (IFRS)

	consolidated			Reconcilation	Other companies		Total operating segments
31/03/11		31/03/12	31/03/11	31/03/12	31/03/11	31/03/12	31/03/11	31/03/12
€'000		€'000	€'000	€'000	€'000	€'000	€'000	€'000
					0	0	124,620	141,100
			-15,334	-18,995	0	0	15,334	18,995
124,620		141,100	-15,334	-18,995	0	0	139,954	160,095
-86,972		-99,643	11,319	13,071	0	0	-98,291	-112,714
-26,950		-28,841	0	0	-930	-1,125	-26,020	-27,716
-6,018		-5,601	4,015	5,924	-362	-375	-9,610	-11,150
4,680		7,015	0	0	-1,292	-1,500	5,972	8,515
-1,564		-1,702	0	0	-40	-44	-1,524	-1,658
3,116		5,313	0	0	-1,332	-1,544	4,448	6,857
31		108	-77	-83	83	120	25	71
-575		-573	77	83	-319	-333	1	-323
0	0		0	0
2,572		4,848	0	0	-1,568	-1,757	4,474	6,605
8	-1		7	-1	0		0	0
2,580		4,847	7	-1	-1,568	-1,757	4,474	6,605
-794		-2,095	-794	-2,095
-63		-570	0	0	0	0	-63	-570
1,723		2,078
1,684		2,045
39	33
				Reconcilation 2)
				815	4,605	16,876	149,356	162,833
155,057		180,524	1,096

A. The principles adopted for the consolidated financial statements

1. General information

The consolidated interim financial statements of CANCOM AG and its subsidiaries ('the CANCOM Group' or 'the Group') for the financial year 2012 were drawn up according to International Financial Reporting Standards or International Accounting Standards (IFRS/ IAS).

The consolidated interim financial statements were drawn up in euro. Unless otherwise stated, all amounts are shown in thousands of euro (€ '000). Rounding of figures may result in apparent inconsistencies between totals and sums of constituent parts. For the same reason, percentages may not total 100 percent.

This consolidated interim 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 2011, which can be downloaded from www.cancom.de.

2. Reporting entity – scope of consolidation

The consolidated financial statements include CANCOM AG and all subsidiaries in which CANCOM AG 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.

CANCOM AG has sold its shares in CANCOM Ltd. The sale is documented by a purchase and transfer agreement signed on 16 March 2012, which is also the effective date of transfer. The sale price was GBP 1.

The impact on various items in the balance sheet of the elimination of CANCOM Ltd. from the list of companies included in the consolidated financial statements is shown below:

	Balance as at
(€ '000)	16 March 2012
Assets held for sale	-2,184
Total current assets	-2,184
Total assets	-2,184
Liabilities associated with held-for-sale assets	-1,597
Total current liabilities	-1,597
Total liabilities	-1,597
Net assets disposed of	-587

(All figures in German data format)

3. Accounting and valuation policies

The consolidated interim financial report is compiled using basically the same accounting and valuation methods as those used for the consolidated financial statements for the financial year 2011.

B. Notes to the consolidated balance sheet

1. Other current financial assets

This item includes a purchase price receivable (€ 2,028 thousand), bonuses due from suppliers (€ 976 thousand), marketing revenue (€ 241 thousand), creditors with a debit balance (€ 207 thousand) and receivables from employees (€ 100 thousand).

2. Prepaid expenses and other current assets

This item mainly consists of other current assets such as tax refunds (€ 160 thousand), compensation for damages (€ 37 thousand), interest income (€ 37 thousand), rent receivables (€ 33 thousand), receivables from social security carriers (€ 27 thousand) and receivables from the German Federal Employment Agency (€ 18 thousand).

Prepaid expenses (€ 1,031 thousand) also include deferred insurance premiums.

3. Deferred tax assets

The deferred tax assets are as follows:

Deferred tax resulting from	Temporary	Tax loss
	differences	carryforward
	€ '000	€ '000
As at 1 January 2012	628	8
Tax expenditure from profit and loss calculation	106	-7
As at 31 March 2012	734	1
(All figures in German data format)

As at 31 March 2012, the CANCOM Group had corporation tax loss carryforwards of € 8.6 million and trade tax loss carryforwards of € 8.1 million. The unused corporate tax losses for which no deferred tax claim was recognised in the balance sheet amounted to € 8.6 million, and the trade tax losses for which no deferred tax claim was recognised amounted to € 8.1 million. These amounts relate to loss carryforwards that 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 therefore cannot be at present be claimed as tax exempt.

The deferred taxes from temporary differences are mainly the result of differences in other provisions (€ 229 thousand), property, plant and equipment (€ 169 thousand), intangible assets (€ 144 thousand), goodwill (€ 123 thousand), and elimination of sales within the Group (€ 66 thousand).

4. Other current financial liabilities

This item includes debtors with a credit balance (€ 784 thousand), outstanding bills of costs (€ 584 thousand), purchase price liabilities (€ 126 thousand) and Supervisory Board remuneration (€ 52 thousand).

5. Other provisions

The provisions mainly include guarantees and warranties (€ 1,497 thousand), severance payments (€ 965 thousand), salaries (€ 474 thousand), additional leasing costs (€ 338 thousand), financial statement costs (€ 97 thousand) and contingent risks (€ 57 thousand).

The total provisions include long-term provisions of € 1,646 thousand disclosed under other non-current liabilities. They comprise guarantees and warranties (€ 752 thousand), a provision for severance payments which is legally mandatory in Austria (€ 456 thousand), anniversaries (€ 205 thousand), provisions for partial retirement (€ 122 thousand) and additional leasing costs (€ 111 thousand).

6. Other current liabilities

Other current liabilities mainly include sales tax (€ 4,507 thousand), bonus payments to Board members and employees (€ 3,736 thousand), holiday and overtime (€ 3,138 thousand), tax on wages and salaries and church tax (€ 1,602 thousand), trade association payments (€ 703 thousand), wages and salaries (€ 198 thousand), social security contributions (€ 164 thousand) and the compensation levy for non-employment of the severely handicapped (€ 39 thousand).

7. Deferred tax liabilities

The deferred tax liabilities are as follows:

	€ '000
As at 1 January 2012	2.653
Tax ependiture from profit and loss calculation	-60
As at 31 March 2012	2.593
(All figures in German data format)

The deferred tax liabilities arise from deviations from the tax balance sheets. They result from the recognition and revaluation of intangible assets (€ 2,378 thousand), other financial assets (€ 184 thousand), orders in process (€ 16 thousand), capital from profit-participation rights and subordinated loans (€ 12 thousand) and other provisions (€ 3 thousand).

The provisions are valued at the relevant tax rate, which ranges between 25 percent (for the Austrian subsidiary) and 32.98 percent (German subsidiary).

8. Other non-current financial liabilities

Other non-current financial liabilities comprise debtors with a credit balance (€ 607 thousand) and purchase price liabilities (€ 448 thousand).

C. Segment information (see page 18+19)

A description of the segments subject to mandatory reporting can be found on page 70 of CANCOM's annual report for 2011.

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 revenue according to customer location 1 Jan. - 31 Mar. 2012 1 Jan. - 31 Mar. 2011		Sales revenue according to company location 1 Jan. - 31 Mar. 2012 1 Jan. - 31 Mar. 2011
	€ '000	€ '000	€ '000	€ '000
Germany	130,122	110,255	133,643	110,326
	Outside Germany 10,978	14,365	7,457	14,294
Group	141,100	124,620	141,100	124,620

		Non-current assets
	31 Mar. 2012	31 Mar. 2011
	€ '000	€ '000
Germany	52,079	50,297
Outside Germany	1,987	2,340
Group	54,066	52,637

(All figures in German data format)

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

D. Notes to the consolidated statement of income

For reasons of comparability, the figures shown below for the previous year have been recalculated in compliance with IFRS 5.34 to take into account the income and expenditure included in the loss from discontinued operations.

1. Other operating income

The other operating income is made up of the following items:

€ '000	1 Jan. - 31 Mar. 2012	1 Jan. - 31 Mar. 2011
Rent	1	2
Income not relating to the period	18	103
Government grants	166	116
Other operating income	4	10
Total	189	231
(All figures in German data format)

2. Personnel expenses

The personnel expenses consist of the following items:

Total	28,841	26,950
Pension expenses	103	87
Social security contributions	4,159	4,195
Wages and salaries	24,579	22,668
€ '000	1 Jan. - 31 Mar. 2012	1 Jan. - 31 Mar. 2011

(All figures in German data format)

3. Other operating expenses

The other operating expenses consist of the following items:

€ '000	1 Jan. - 31 Mar. 2012	1 Jan. - 31 Mar. 2011
Office space	1,269	1,198
Insurance and other charges	148	196
Motor vehicles	1,224	1,499
Advertising	407	246
Stock exchange and entertainment	39	141
Hospitality and travelling expenses	776	646
Delivery costs	441	584
Third-party services	432	485
Repairs, maintenance, leasing	240	214
Communication and office expenses	433	472
Legal and consultancy expenses	156	85
Fees and charges; costs of money transactions	97	117
Adjustments on receivables	64	17
Other operating expenses	535	349
Total	6,261	6,249

(All figures in German data format)

4. Income tax

The rate of income tax for German companies was 30.79 percent (2011: 30.04 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 AG is shown below:

€ '000	1 Jan. - 31 Mar. 2012	1 Jan. - 31 Mar. 2011
Earnings before tax	4,847	2,580
Expected tax expense at rate
for German companies (30.79 percent; 2011: 30.04 percent)	1,492	775
	1	-8
- Difference from tax paid outside Germany - Change in value adjustment of deferred tax assets
on loss carryforwards	72	-8
- Tax-exempt income/ non tax-relevant capital losses	-63	-1
- Actual income not relating to the period	572	-6
- Permanent differences:
non-deductible operating expenses; additions and
reductions due to trade tax	46	40
- Deferred taxes due to contingent
purchase price components	0	-2
- Miscellaneous	-25	4
Total Group income tax	2,095	794

(All figures in German data format)

E. Other disclosures

The actual tax rate is calculated as follows:

(All figures in German data format)
Actual tax expense rate	43.22%
Income tax	2,095
Income before tax	4,847
	€ '000

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

€ '000	1 Jan. - 31 Mar. 2012	1 Jan. - 31 Mar. 2011
Actual income tax paid	2,254	926
Deferred taxes
Assets	-99	39
Liabilities	-60	-171
	-159	-132
Group income tax	2,095	794

(All figures in German data format)

5. Discontinued operations

The impact of discontinued operations on the consolidated statement of income is a loss of € 674 thousand and comprises the loss made by CANCOM Ltd. up to the time of its sale, and the loss on the sale.

6. Minority interests

Minority interests account for 49 percent of acentrix GmbH's net income for the year.

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 AG. Rudolf Hotter, the other Executive Board member, is also a related party for the purposes of IAS 24, as are the members of the Supervisory Board. The following can also be considered to be related parties as defined by IAS 24.9 b:

• AL-KO Kober AG and its subsidiaries
• PEN GmbH
• WFO Vermögensverwaltung GmbH
• AURIGA Corporate Finance GmbH
• SNP Schneider-Neureither & Partner AG.

Related party transactions were made on terms equivalent to those that prevail in arm's length transactions, with payment due in full between 10 and 30 days after the invoice date.

The transaction volume of goods sold, and services provided, to related parties under IAS 24 was in the first quarter 2012 € 2,689 thousand (gross), of which € 334 thousand was still outstanding at the balance sheet date. This amount relates to goods/services purchased by AL-KO Kober AG and its subsidiaries.

The was no transaction volume of goods and services purchased from related parties under IAS 24.

A consultancy agreement has been in place between CANCOM AG and the Chairperson of its Supervisory Board, Walter von Szczytnicki, since 1 July 2007. The contract was approved on 9 March 2007 in accordance with Section 114 of the German Stock Companies Act (Aktiengesetz, AktG), and provides for an annual remuneration of € 60 thousand. The remuneration paid in the first quarter of 2012 amounted to € 15 thousand.

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

A list of shareholdings can be found on page 10 of this interim report.

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

CANCOM AG did not receive written notice from any shareholder disclosing a majority shareholding as defined in Section 20 of the above Act in the first three months of 2012.

3-Monatszahlen 2007 3-months-report 2012

Publication details

CANCOM AG

Investor Relations

Ridlerstrasse 37 80339 München

GERMANY

Tel.: +49 82 25 / 9 96-1015 Fax: +49 82 25 / 9 96-4-1015 E-Mail: IR@CANCOM.DE