CANCOM SE — Interim / Quarterly Report 2013

May 15, 2013

CANCOM SE

Investor Relations Erika-Mann-Straße 69 80636 München Germany Phone +49 89 54054–5193 Fax +49 8225 996–45193 ir@cancom.com www.cancom.com

Interim Report 31 March 2013

CANCOM – integrated solutions for IT infrastructure, system integration, consulting & services

Since its foundation in 1992, CANCOM SE seated in Munich, Germany, has grown to become one of the largest full IT service providers in Germany. The integrated product and service portfolio ranges from consulting and IT architecture design to IT procurement, integration and system operation.

Several partnerships and certifications with leading manufacturers are expression of CANCOMs expertise in the trend-setting IT topics of the future such as cloud and mobile computing, collaboration or security.

At the "Cloud Vendor Benchmark 2013" CANCOM was awarded "Cloud Leader 2013" by the Experton Group. This award certificates that CANCOM offers an excellent Cloud-portfolio and an above-average competitive strength within the German market.

"CANCOM's 'AHP Private Cloud' offers a well engineered Enterprise Workplace solution. Therefore CANCOM has produced evidence, that system houses are able to successfully master the change into the age of cloud computing." (Dr. Carlo Velten, Senior Advisor Experton Group AG)

Group key figures

in € million	01/01-31/03/2013	01/01-31/03/2012	Changes
Revenue	135.1	141.1	-4.3%
Gross profit	43.8	42.1	4.0%
EBITDA	7.0	7.0	0.0%
EBITDA margin in %	5.2	5.0	0.2%
EBIT	4.8	5.3	-9.4%
After-tax profit from continuing operation	3.2	2.8	14.3%
Earnings per share (in €) from continuing operations (diluted)	0.28	0.26	7.7%
Average number of shares	11,430	10,391	10.0%
Employees as of 31. March	2,034	1,981	2.7%
in € million	31/03/2013	31/12/2012	Changes
Balance sheet total	180.5	208.6	-13.5%
Equity	84.0	80.8	4.0%
Equity ratio in %	46.5	38.7	7.8%

	Revenue CANCOM Group 01/01-31/03/2012 und 01/01-31/03/2013 (in Mio. Euro)		Gross profit CANCOM Group 01/01-31/03/2012 und 01/01-31/03/2013 (in Mio. Euro)
2012	141.1	2012	42.1
2013	135.1	2013	43.8

EBITDA CANCOM Group

01/01-31/03/2012 und 01/01-31/03/2013 (in Mio. Euro)

2012	7.0
2013	7.0

Earnings per share from continuing operations CANCOM Group

01/01-31/03/2012 und 01/01-31/03/2013 (in Euro)

2012	0.26
2013	0.28

Table of contents

2	Key figures
3	Table of contents
4 - 5	Perface
6 - 11 C	onsolidated interim management report Q1 1) Business and operating environment 2) The earnings, financial and assets position of the CANCO M 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 07-09 09 10 10 10 10-11
12 - 13 C	onsolidated balance sheet
14 C	onsolidated income statement

• 16 Consolidated cash flow statement

15 Statement of Compehensive income

• 17 Consolidated statement of changes in equity
• 18 19 Segment information
• 20 23 Notes to the Consolidated accounts

Dear Shareholders,

after a strong financial year in 2012, the first quarter of 2013 has also ended on a high note for the CANCOM group. As expected, there was a slight year-on-year decline in the consolidated sales revenues in the first three months. On the other hand, the gross profit, EBITDA margin and earnings per share have improved. Taking into account the fact that the first quarter of 2012 was particularly strong, and that there were fewer working days this year – because the Easter holiday fell partly in the first quarter – we are very satisfied with the results achieved. In addition to a slight weakening in the economy, the results are also affected by depreciation owing to investments in the cloud solutions and e-commerce businesses. Our strategy focuses in particular on high-earnings and high-growth market segments, and the corporate portfolio is geared towards the IT segments with the most promising future. The results of the past year and the first quarter of 2013 have already demonstrated that the group can achieve its medium-term target EBITDA margin of 5 percent.

We have further expanded our area of expertise in the highgrowth market for unified communications and collaboration (UCC) solutions by acquiring GES Gesellschaft für elektronische Systeme GmbH in March. GES specialises in IT network and security solutions, and in 2012 it generated sales revenues of more than € 3 million. Its prestigious customer base includes private and public-sector companies, who will be even better served in future by the integrated portfolio of products and services offered by the CANCOM group.

The workplace of the future improves efficiency and productivity within companies by means of a variety of devices that enable employees to work anywhere, in addition to a reliable communications system. With businesses increasingly providing such flexible working arrangements for employees, the latest IT trends, such as cloud computing and UCC, will also play a major role at CANCOM in the current year. Last year alone, IT providers generated sales revenues of more than € 5 billion from cloud computing. According to the German Association for Information Technology, Telecommunications and the New Media (BITKOM), this represents growth of almost 50 percent. As a successful cloud architect, systems integrator and managed services provider, we provide high-performance, state-of-the-art IT environments individually tailored to the needs of our customers. The high quality of our cloud solutions is borne out by the fact that in April we won the Cloud Leader 2013 award from the Experton Group, a leading independent IT research and consultancy firm.

The demand for our CANCOM AHP Private Cloud continues to be good. We expect to complete three large cloud projects for high-profile customers in the second quarter of this year. In contrast to the typical project business, often the implementation of cloud projects does not immediately result in sales revenues and profits. However, after completion of these projects we are able to generate secure and steady cash flows from the service contracts signed. Consequently, the growth of the cloud solutions business results in a reduction in sales revenues and profits in the short term, but in the long term we anticipate a further increase in the profitability of the group.

We are grateful to you, our shareholders, for your confidence in us. We look forward to your continued support.

Yours sincerely,

Klaus Weinmann

"We face some exciting challenges and chances we are positioning ourselves for in 2013."

CONSOLIDATED INTERIM MANAGEMENT REPORT

1. Business and operating environment

The CANCOM group is one of the leading providers of IT infrastructure in Germany and Austria.

Legal structure of the CANCOM group

CANCOM SE, 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

The CANCOM group is one of the three largest independent integrated systems providers in Germany. It offers IT architecture, systems integration and managed services. As a provider of integrated services, CANCOM mainly focuses on IT services, in addition to distributing hardware and software in its transaction-based and product-related business. Its comprehensive range of IT services includes design of IT architectures and IT landscapes, IT strategy advice and consulting, design and integration of IT systems, and system operation.

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

Explanation of the control system used within the group

To control and monitor the performance of the individual subsidiaries, CANCOM analyses their monthly figures for, among other things, sales revenues, gross profit, operating expenditure and operating profit, and compares these key figures with the original plan as well as the quarterly forecast. For the purpose of management control, the company also regularly uses external indicators such as inflation rates, interest rates, the general economic trend and the performance of the IT sector, including forecasts. Cash management procedures include daily status assessments.

Research and development activities

Innovation is very important for economic momentum and growth. However, as it is purely a service and trading enterprise, CANCOM does not conduct any research. Its development work focuses, for example, on software solutions and applications in IT growth segments such as cloud computing, virtualisation, mobile solutions, IT security and managed services. Development activities are very limited in scope and are mainly used for the group's own purposes.

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

According to the economic barometer of the German Institute of Economic Research (Deutsches Institut für Wirtschaftsforschung, DIW Berlin), the German economy grew by around 0.3 percent in the first quarter of 2013. This was slightly below expectations for the first three months, but significantly higher than the weak final quarter of 2012, in which the economy contracted by 0.6 percent.

The latest economic survey by the German Association for Information Technology, Telecommunications and New Media (BITKOM), found that German high-tech companies started the new year with some momentum. Three-quarters of IT and telecommunications companies expect an increase in sales revenues in the first half of this year.

Overview of the CANCOM group's business performance

As expected, there was a slight decline in the sales revenues and EBIT of the CANCOM group in the first quarter of 2013. On the other hand, there was a year-on-year improvement in the gross profits, EBITDA margin and earnings per share, owing to March being better than expected.

The consolidated sales revenues for the first quarter of 2013 were € 135.1 million, compared with € 141.1 million in the first quarter of 2012. Consolidated gross profits were up 4 percent, from € 42.1 million to € 43.8 million. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) were € 7.0 million, level with the same quarter of 2012, resulting in a year-on-year increase in the EBITDA margin from 5.0 percent to 5.2 percent. Consolidated EBIT was down 9.4 percent, at € 4.8 million compared with € 5.3 million in the first quarter of 2012. The net income from continuing operations was up 14.3 percent from € 2.8 million to € 3.2 million, resulting in earnings per share from continuing operations of € 0.28, compared with € 0.26 in the same period of 2012.

Significant events and investments during the reporting period

The process for conversion of CANCOM AG into CANCOM SE was completed on 28 February 2013 when the change of legal form was entered in the commercial register. The change of legal structure does not affect the assets, financial and earnings position of either the company or the group.

CANCOM has acquired all of the shares in GES Gesellschaft für elektronische Systeme mbH, based in Ingelfingen, in the German federal state of Baden-Wuerttemberg. The transaction is documented in a contract of sale dated 13 March 2013. The acquisition expands CANCOM's expertise in the high-growth unified communications and collaboration (UCC) solutions market.

GES specialises in IT network and security solutions, particularly UCC services. The company generated sales revenues of more than € 3 million in 2012 with 10 employees, and it has operated in profit for several years. Its prestigious customer base includes private and public-sector companies.

Employees

As at 31 March 2013, the CANCOM group employed 2,034 people.

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

	1 JAN - 31 MAR 2013	1 JAN – 31 MAR 2012
Wages and salaries	26,011	24,579
Social security contributions	4,481	4,159
Pension provisions	60	103
Total	30,552	28,841

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

a) Earnings position

As expected, there was a slight decline in the sales revenues and EBIT of the CANCOM group in the first quarter of 2013.

Consolidated sales revenues were down 4.3 percent in comparison with the same period of 2012, from € 141.1 million to € 135.1 million. The quarter-on-quarter change is skewed by the exceptionally good results achieved in the first quarter of 2012, as a result of the recognition of sales revenue from a project completed in 2011 being postponed into the first quarter of 2012. In addition, the first quarter of 2013 had fewer working days than the first quarter of 2012 because of the Easter holiday.

In Germany, sales revenues were down 3.6 percent, from € 133.6 million to € 128.9 million.

In international business, the group's sales revenues were down 17.3 percent, from € 7.0 million to € 6.2 million.

In the e-commerce segment, sales revenues were down 17.7 percent to € 31.1 million, in comparison with € 37.8 million in 2012. In the IT solutions segment, sales revenues were up slightly from € 103.3 million to € 104.0 million.

The consolidated gross profit for the first three months of 2013 was up 4.0 percent in comparison with the same period of 2012, from € 42.1 million to € 43.8 million. This was a result of the successful expansion of the high-margin services business. The gross profit margin was up from 29.8 percent to 32.4 percent.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for the first quarter of 2013 were the same as for the first three months of 2012, at € 7.0 million. As a result, the EBITDA margin rose to 5.2 percent, compared with 5.0 percent in the first quarter of 2012.

	CANCOM group EBITDA Year-on-year comparison of figures for the first three months (in € million)
2012	7.0
2013	7.0

At € 4.8 million, consolidated earnings before interest and tax (EBIT) were down 9.4 percent on the first quarter of 2012, when they amounted to € 5.3 million. The reason for the decline is the increase in amortisation and depreciation, particularly owing to investments in the CANCOM Cloud data centre in Munich, Germany, and in improvements to the ERP systems and e-supply chain.

	CANCOM group EBIT Year-on-year comparison of figures for the first three months (in € million)
2012	5.3
2013	4.8

The net income for the period from continuing operations was up 14.3 percent from € 2.8 million to € 3.2 million. As a result, earnings per share from continuing operations were € 0.28 in the first three months of 2013, compared with € 0.26 in the same period of 2012.

	CANCOM group earnings per share Year-on-year comparison of figures for the first three months (in € million)
2012	0.26
2013	0.28

The order position

In the e-commerce business segment and parts of the IT solutions business 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, and for this reason they are not published.

In the IT solutions business segment, orders are often placed over long periods. For this reason, the reporting date figures do not give a good indication of the order situation in this segment either. At the time this management report was written, the high level of demand for the CANCOM AHP Private Cloud looked set to continue through the second quarter of 2013. Orders in the cloud environment often involve longer-term projects and entail higher initial costs and opportunity costs, but they lead to sustained, stable sales revenues and profits.

Thanks to the steady services business – which now accounts for around two thirds of the consolidated gross profit (total output less materials costs and services rendered) – as well as the healthy balance sheet, the management feels the group is in a strong position within the IT sector.

Explanations of individual items on the statement of income

Further 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 in such a way 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 decrease in current assets from € 146.8 million to € 118.1 million between 31 December 2012 and 31 March 2013. Cash and cash equivalents were down from € 44.6 million to € 16.3 million owing to seasonal variations. Trade accounts receivable were down from € 88.3 million to € 84.0 million, as were inventories, which totalled € 8.5 million compared with € 8.7 million at the end of 2012.

Non-current assets as at 31 March 2013 were up slightly at € 62.4 million, compared with € 61.9 million as at 31 December 2012.

On the liabilities side of the balance sheet, there was a significant reduction in current liabilities from € 106.6 million to € 75.3 million. This is mainly the result of a decrease in trade accounts payable from € 76.9 million to € 50.9 million.

At € 21.2 million, non-current liabilities – consisting of liabilities with a residual term of at least one year – are the same as at the end of 31 December 2012.

The total assets are down from € 208.6 million as at 31 December 2012 to € 180.5 million as at 31 March 2013.

The nominal equity capital has been increased from € 80.7 million to € 84.0 million since the start of the year, mainly through transfers to net profits. Overall, this resulted in an equity ratio of 46.5 percent at 31 March 2013, compared with 38.7 percent as at 31 December 2012.

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 € 25.6 million as at 31 March 2013, compared with a negative cash flow of € 14.3 in the same period of 2012. The change in comparison with the previous year is mainly the result of a reduction in trade accounts payable.

There was a negative cash flow from investing activities of € 2.5 million, compared with a negative cash flow of € 1.0 million in the first three months of 2012.

The negative cash flow from financial activities was € 0.3 million, compared with a negative cash flow of € 1.0 million in the same period of 2012.

Overall, this resulted in cash and cash equivalents of € 16.3 million, compared with € 28.3 million in 2012.

3. Shares held by members of the Executive and Supervisory Boards as at 31 March 2013

Total number of shares	11,429,826	100%
Executive Board
Klaus Weinmann	177,270	1.6 %
Supervisory Board
Stefan Kober	26,289	2.3 %
Petra Neureither*	35,000*	0.3 %*

* Shares are attributed indirectly via PEN GmbH

4. Events of particular significance after the reporting date

CANCOM IT Solutions GmbH and CANCOM cloud solutions GmbH have been merged into CANCOM Deutschland GmbH, which has been trading as CANCOM GmbH since the merger was entered in the commercial register on 23 April 2013. The mergers are documented in a notarised agreement dated 10 April 2013.

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 2012, starting on page 23. The annual report can be downloaded from www.cancom.com under the Investors Relations tab or obtained free of charge from the company.

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 can be found in the annual report for 2012, starting on page 23. The annual report can be downloaded from www.cancom.com under the Investors Relations tab or obtained free of charge from the company.

7. Forecast

According to the German Institute of Economic Research (Deutsches Institut für Wirtschaftsforschung, DIW), the German economy should continue to grow at 0.3 percent in the second quarter of the current year. For the year as a whole, so far experts are forecasting muted growth.

The reasons for this are the economic problems experienced by many eurozone countries, as well as the winter economic dip, which is inhibiting the recovery of the German economy. With its growth forecast of 0.4 percent, the German federal government is more cautious than the leading economic researchers, who had previously forecast growth of 0.8 percent.

Forecast: Deutsche Bank Economic Research, 2 May 2012

The market figures from the German Association for Information Technology, Telecommunications and New Media (BITKOM) for March show that experts are expecting the German IT market to grow by 2.2 percent in 2013.

A decline of 0.3 percent is forecast for IT hardware, compared with growth of 1.7 percent in 2012. The software segment is expected to grow by 4.6 percent, compared with 5.1 percent in 2012, and the IT services segment by 2.5 percent, compared with 2.1 percent in 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 e-supply chain enables further reductions to be made in process and transaction costs both for customers and for the CANCOM group, which should result in greater profitability for the group's trading business.

CANCOM has also further expanded its market presence and improved its customer proximity in the German-speaking countries. It is now represented all over Germany and Austria by its many service and consulting locations. CANCOM plans to continue consolidating 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 at a faster rate than the IT market, on the basis of its proven expertise and outstanding market position in the IT growth areas described. Further acquisitions are also planned to contribute to the steady expansion of the group's market share.

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 medium-term increases in the sales revenues and profits if the demand for IT products and services remains steady or rises.

Against the background of the group's positive performance in 2012, the Executive Board currently expects that, provided economic conditions continue to be good, the sales revenues and profits of the group as a whole will be good in 2013 and its financial situation will continue to be positive.

Munich, Germany, May 2013

CANCOM SE

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 SE. These statements are identifiable by words and phrases such as 'plan', 'intend', 'wish' 'will', 'expect', 'anticipate' etc. and are based on current expectations, assumptions and assessments. Although we feel that these statements and comments are based on realistic expectations, 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, among others, 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 position and 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

(in € 000)	Notes	31/03/2013	31/12/2012	31/03/2012
Current assets
Cash		16,254	44,638	28,313
Trade accounts receivable		84,003	88,285	81,815
Other current financial assets	B.1.	4,123	3,277	3,552
Inventories		8,487	8,744	9,216
Orders in process		2,474	666	1,344
Prepaid expenses and other current assets	B.2.	2,738	1,140	1,361
Total current assets		118,079	146,750	125,601
Long-term assets
Property, plant and equipment		18,561	17,552	13,219
Intangible assets		16,231	16,889	15,872
Goodwill		24,336	24,336	23,667
Investments		71	71	70
Notes receivable/loans		56	56	52
Other financial assets		1,601	1,683	1,277
Deferred taxes arising from temporary differences	B.3.	1,136	971	734
Deferred taxes arising from tax loss carryover	B.3.	298	158	1
Other assets		137	182	31
Total long-term assets		62,427	61,898	54,923
Total assets		180,506	208,648	180,524

Equity and liabilities

(in € 000)	Notes	31/03/2013	31/12/2012	31/03/2012
Current liabilities
Short-term debt and current portion of long-term debt		1,393	900	3,814
Profit-participation capital and subordinated loans short-term portion		0	412	6,920
Trade accounts payable		50,933	76,933	55,909
Advance payments received		2,553	3,649	1,515
Other current financial liabilities	B.4.	1,697	2,063	1,546
Accrued expenses	B.5.	1,376	1,726	1,833
Prepaid expenses and deferred charges		1,285	866	1,285
Income tax payable		2,282	3,352	8,112
Other current liabilities	B.6.	13,816	16,746	14,612
Total current liabilities		75,335	106,647	95,546
Long-term liabilities
Long-term debt, less current portion		4,937	5,120	5,663
Profit-participation capital and subordinated loans		5,671	5,592	6,415
Prepaid expenses and deferred charges		3,987	4,188	4,250
Deferred taxes arising from temporary differences	B.7.	2,801	2,831	2,593
Pension provisions		123	123	87
Other long-term financial liabilities	B.8.	1,611	1,333	1,055
Other long-term liabilites	B.5.	2,076	2,040	1,646
Total long-term liabilities		21,206	21,227	21,709
Equity
Share capital		11,430	11,430	10,391
Additional paid-in capital		26,086	26,086	15,904
Net profit (incl. retained earnings)		46,254	43,087	36,780
Currency translation difference and exchange rate difference		-9	-10	-11
Minority interest		204	181	205
Total equity		83,965	80,774	63,269
Total equity and liabilities		180,506	208,648	180,524

Consolidated income statement

(in € 000)	Notes	01/01/2013 - 31/03/2013	01/01/2012 - 31/03/2012
Revenues		135,091	141,100
Other operating income	D.1.	165	189
Other capitalised services rendererd for own account		128	471
Total operating income		135,384	141,760
Cost of purchased materials and services		-91,589	-99,643
Gross profit		43,795	42,117
Personnel expenses	D.2.	-30,552	-28,841
Depreciation on property, plant and equipment and amortisation of intangible assets		-2,154	-1,702
Other operating expenses	D.3.	-6,267	-6,261
Operating income		4,822	5,313
Interest and similar income		71	108
Interest and other expenses		-294	-573
Foreign currency exchange gains		6	-1
Profit before taxes (and minority interest)		4,605	4,847
Income tax expense	D.4.	-1,415	-2,095
After-tax profit/loss from continuing operations		3,190	2,752
Profit/loss from discontinued operations		0	-674
Net income for the period		3,190	2,078
thereof attributable to the shareholders of the parent		3,167	2,045
thereof attributable to minority interests	D.5.	23	33
Average number of shares outstanding (basic)		11,429,826	10,390,751
Average number of shares outstanding (diluted)		11,429,826	10,390,751
Earnings per share from continuing operations (non-diluted)		0.28	0.26
Earnings per share from continuing operations (diluted)		0.28	0.26
Earnings per share from discontinued operations (non-diluted)		0.00	-0.06
Earnings per share from discontinued operations (diluted)		0.00	-0.06

Statement of compehensive income

(in € 000)	01/01/2013 - 31/03/2013	01/01/2012 - 31/03/2012
Net income for the period	3,190	2,078
Other income
Currency translation difference	1	-3
Exchange rate difference	0	0
Income taxes	0	0
Other after-tax income for the period	1	-3
Comprehensive income for the period	3,191	2,075
thereof attributable to the shareholder of the parent	3,168	2,042
thereof attributable to the minority interests	23	33

Consolidated cash flow statement

(in € 000)	01/01/2013 - 31/03/2013	01/01/2012 - 31/03/2012
Cash flow from ordinary activities
Profit for the year before tax and minority interest	4,605	4,847
Adjustments
+/- Depreciation on property, pland and equipment and amortisation of intangible assets	2,154	1,702
+/- Changes in long-term provisions	36	-1,249
+/- Changes in short-term provisions	-350	278
+/- Gains/losses on the sale of intangible assets, property, plant and equipment and financial assets	22	-401
+ Interest expenditure	223	465
+/- Changes in inventories	257	5,776
+/- Changes in trade accounts receivable and other accounts receivable	169	-10,134
+/- Changes in trade accounts payable and other accounts payable	-29,875	-15,515
+/- Interest payments and rebates	-28	-59
+/- Income tax payments and rebates	-2,832	-147
+/- Cash inflow/outflow from discontinued operations	0	150
Net cash from operating activities	-25,619	-14,287
Cash flow from investing activities
- Payments for additions to intangible assets and property, pland and equipment	-2,542	-2,024
+ Income from disposal of intangible assets, property, plant and equipment and financial assets	15	461
- C ash transferred on the sale of financial assets	0	-402
+ Interest received	71	108
+/- Cash inflow / outflow from discontinued operations	0	950
Net cash used in investing activities	-2,456	-907
Cash flow from financing activities
- Repayment of long-term financial liabilities (incl. short-term portions)	-590	-680
+/- Changes in short-term liabilitiesn	457	20
- Interest paid	-156	-345
+/- Cash inflow / outflow finance lease	-21	36
Net cash used in financing activities	-310	-969
Net change in cash and cash equivalentse	-28,385	-16,163
+/- Changes in value resulting from foreign currency exchange	1	1
+/- Cash as at beginning of period	44,638	44,475
Cash and cash equivalents as at end of period	16,254	28,313
Breakdown:
Cash	16,254	28,313

16,254 28,313

Consolidated statement of changes in equity (IFRS)

	Shares	Share capital	Additional paid-in capital	Additional paid-in capital	Foreign currency translation reserve	Exchange rate difference reserve	Revaluation reserve	Net profit / loss	Total investors parent company	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 2011	10,391	10,391	15,904	17,088	-291	0	-153	17,800	60,739	173	60,912
Capital increase *	1,039	1,039	10,391						11,430		11,430
Changes in reserves: Costs of capital increase			-209						-209		-209
Transfer net profit / retained earnings				8,118				-8,118	0		0
Payout in financial year								-3,117	-3,117	-141	-3,258
Comprehensive income for the period					280	1		11,469	11,750	115	11,865
Changes in the scope of consolidation				0						34	34
31. December 2012	11,430	1,430	26,086	25,206	-11	1	-153	18,034	80,593	181	80,774
Comprehensive income for the period					1	0		3,167	3,168	23	3,191
31. March 2013	11,430	11,430	26,086	25,206	-10	1	-153	21,201	83,761	204	83,965

* Issuing amount per share € 11

Segment information – IFRS

Segment information		e-commerce	IT Solutions
	31/03/13 €'000	31/03/12 €'000	31/03/13 €'000	31/03/12 €'000
Sales revenues
- External sales	31,082	37,819	104,009	103,281
- Intersegment sales	1,169	1.071	17,680	17,924
- Total sales revenues	32,251	38,890	121,689	121,205
- Cost of purchased materials and services	-25,258	-31,954	-80,342	-80,760
- Personnel expenses	-3,764	-4,244	-25,630	-23,472
- Other operative income and expenses	-1,013	-555	-9,344	-10,595
EBITDA	2,216	2,137	6,373	6,378
- calculated depreciation and amortisation	-356	-276	-1,747	-1,382
Operating income (EBIT)	1,860	1,861	4,626	4,996
- Interest income	35	62	22	9
- Interest expenditure	-101	-182	-213	-141
- Income from investments
Result from ordinary activities	1,794	1,741	4,435	4,864
- Foreign currency exchange gains / losses
Pre-tax profit	1,794	1,741	4,435	4,864
- Income taxes
- discontinued operations	0	-674	0	0
Consolidated income for the year
thereof attributable to the shareholders of the parent
thereof attributable to minority interests
Other information
- Assets 1	57,145	55,169	110,893	107,664
- Investments 1	756	795	1,762	1,138

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

2) Tax assets

• Investments 1 756 795 1,762 1,138 2,518 1,933 24 91 2,542 2,024

Totals		Other companies			Reconciliation		Consolidated
31/03/13 €'000	31/03/12 €'000	31/03/13 €'000	31/03/12 €'000	31/03/13 €'000	31/03/12 €'000	31/03/13 €'000	31/03/12 €'000
135,091	141,100	0	0
18,849	18,995	0	0	-18,849	-18,995
153,940	160,095	0	0	-18,849	-18,995	135,091	141,100
-105,600	-112,714	0	0	14,011	13,071	-91,589	-99,643
-29,394	-27,716	-1,158	-1,125	0	0	-30,552	-28,841
-10,357	-11,150	-455	-375	4,838	5,924	-5,974	-5,601
8,589	8,515	-1,613	-1,500	0	0	6,976	7,015
-2,103	-1,658	-51	-44	0	0	-2,154	-1,702
6,486	6,857	-1,664	-1,544	0	0	4,822	5,313
57	71	166	120	-152	-83	71	108
-314	-323	-132	-333	152	83	-294	-573
				0	0	0	0
6,229	6,605	-1,630	-1,757	0	0	4,599	4,848
0	0		0	6	-1	6	-1
6,229	6,605	-1,630	-1,757	6	-1	4,605	4,847
				-1,415	-2,095	-1,415	-2,095
0	-674	0	0	0	0	0	-674
						3,190	2,078
						3,167	2,045
						23	33
					Reconciliation 2
168,038	162,833	10,651	16,876	1,817	815	180,506	180,524

A. The principles adopted for the consolidated financial statements

General information

The consolidated interim financial statements of CANCOM SE and its subsidiaries ('the CANCOM group' or 'the group') for the financial year 2013 were drawn up according to the International Financial Reporting Standards (IFRSs) or the International Accounting Standards (IASs).

The consolidated interim financial statements were drawn up in euro. All amounts are shown in thousand euro (€ thousand) unless otherwise stated. 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 IFRS-compliant consolidated financial statements for the financial year 2012, which can be downloaded from www.cancom.com.

Reporting entity

The consolidated financial statements include CANCOM SE and all subsidiaries in which CANCOM SE 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 SE has acquired 100 percent of the shares in GES Gesellschaft für elektronische Systeme mbH (trading as CANCOM GES Gesellschaft für elektronische Systeme mbH since 10 April 2013) for the nominal sum of € 102,258.38. The acquisition is documented in a share purchase and transfer agreement dated 13 March 2013.

The purchase price was € 949,400. Incidental acquisition costs of € 5 thousand were incurred in the first quarter of 2013; these are shown in the statement of income under other operating expenses.

The company was included in the consolidated financial statements with effect from 1 April 2013.

The commercial object of the company is to engage in trading computers, systems and accessories for digital video technology, to develop and distribute software and to provide services of all kinds, including consultancy connected with all areas of digital video technology.

Change in the reporting entity in 2013:

Name and registered office of company	Date from which included in the consolidated fi nancial statements	Equity investment (in percent)	Voting rights (in percent)
CANCO M GES Gesellschaft für elektro nische Systeme mbH, Künzelsau, Germany	1 April 2013	100	100

CANCOM IT Solutions GmbH and CANCOM cloud solutions GmbH have been merged into CANCOM Deutschland GmbH (trading as CANCOM GmbH since 23 April 2013). The merger is documented in merger contracts dated 10 April 2013, and was recorded in the commercial register of CANCOM GmbH on 23 April 2013.

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 2012.

B. Notes to the consolidated balance sheet

1. Other current financial assets

This item includes bonuses due from suppliers (€ 2,160 thousand), purchase price claims (€ 1,125 thousand), marketing revenue (€ 430 thousand), creditors with a debit balance (€ 259 thousand), receivables from employees (€ 147 thousand) and receivables from existing shareholders (€ 2 thousand).

2. Prepaid expenses and other current assets

This item mainly consists of other current assets such as tax refunds (€ 1,489 thousand), compensation for damages (€ 138 thousand), commission income (€ 133 thousand), rent receivable (€ 47 thousand), interest income (€ 14 thousand) and receivables from social insurance institutions (€ 3 thousand).

The prepaid expenses and deferred charges (€ 899 thousand) include deferred insurance premiums and expenses paid in advance.

3. Deferred tax assets

The deferred tax assets are as follows:

Deferred tax resulting from	temporary differences €'000	tax loss carryforwards €'000
As at 1 January 2013	971	158
Tax revenue from profit and loss calculation	165	140
As at 31 March 2013	1,136	298

As at 31 March 2013 the CANCOM group had corporate tax loss carryovers of € 6.9 million and trade tax loss carryovers of € 5.7 million. The unused corporation tax losses for which no deferred tax claim was recognised in the balance sheet amounted to € 5.8 million, and the trade tax loss carryovers for which no deferred tax claim was recognised amounted to € 5.3 million. The amounts referred to include a component of € 5.8 million (corporation tax) and € 5.3 million (trade tax), which has 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 at present be claimed as tax exempt.

The deferred taxes from temporary differences are mainly the result of differences in property, plant and equipment (€ 385 thousand), other liabilities (€ 324 thousand), intangible assets (€ 133 thousand), other provisions (€ 130 thousand), goodwill (€ 82 thousand) and elimination of sales within the group (€ 66 thousand).

4. Other current financial liabilities

This item includes debtors with a credit balance (€ 658 thousand), outstanding bills of charges (€ 605 thousand), Supervisory Board remuneration (€ 250 thousand), purchase price liabilities (€ 117 thousand) and rent obligations (€ 67 thousand).

5. Other provisions

The provisions mainly include guarantees and warranties (€ 1,484 thousand), purchase price of shares in affiliated companies (€ 679 thousand), severance payments (€ 586 thousand), salaries (€ 373 thousand), additional leasing costs (€ 153 thousand), and financial statement costs (€ 95 thousand).

The total provisions include long-term provisions of € 2,076 thousand, which are disclosed under other non-current liabilities. These provisions are for guarantees and warranties (€ 688 thousand), the termination payments legally mandatory in Austria (€ 523 thousand), the purchase price for the shares in Glanzkinder GmbH and CANCOM Unicorner GmbH (€ 455 thousand), anniversaries (€ 240 thousand), part-time work for older employees (€ 84 thousand), and additional leasing costs (€ 86 thousand).

6. Other current liabilities

Other current liabilities mainly include bonus payments to Board members and employees (€ 4,541 thousand), holiday and overtime entitlements (€ 3,495 thousand), sales tax (€ 2,524 thousand), tax on salaries and church tax (€ 1,686 thousand), trade association payments (€ 747 thousand), social security contributions (€ 181 thousand) and wages and salaries (€ 127 thousand).

7. Deferred tax liabilities

The deferred tax liabilities are as follows:

	€'000
As at 1 January 2013	2,831
Tax revenue/ expense from profit and loss calculation	-30
As at 31 March 2013	2,801

The deferred tax liabilities arise from deviations from the tax balance sheets.

They are the result of the recognition and revaluation of intangible assets (€ 2,181 thousand), other financial assets (€ 463 thousand), orders in process (€ 141 thousand), capital from profit participation rights and subordinated loans (€ 12 thousand) and other provisions (€ 3 thousand).

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

8. Other non-current financial liabilities

Other non-current financial liabilities include debtors with a credit balance, amounting to € 723 thousand, purchase price liabilities of € 536 thousand and rent obligations of € 352 thousand.

C. Segment information (see page 18+19)

A description of the segments subject to mandatory reporting can be found on page 75 of the IFRS consolidated annual financial statements for 2012.

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 necessarily correspond to the structure of the segments.

Information on geographical regions

		Sales revenues according to customer location		Umsätze nach Sitz der Gesellschaften
	1 Jan - 31 Mar 2013 €'000	1 Jan - 31 Mar 2012 €'000	1 Jan - 31 Mar 2013 €'000	1 Jan - 31 Mar 2012 €'000
Germany	125,003	130,122	128,907	133,643
Outside Germany	10,088	10,978	6,184	7,457
Group	135,091	141,100	135,091	141,100

		Non-current assets
	31 Mar 2013 €'000	31 Mar 2013 €'000
Germany	58,968	52,079
Outside Germany	1,898	1,987
Group	60,866	54,066

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

1. Other operating income

The other operating income is made up of the following:

	1 Jan - 31 Mar 2013	1 Jan - 31 Mar 2012
	€'000	€'000
Rent	11	1
Income not relating to the period	41	18
Government grants	107	166
Other operating income	6	4
Total	165	189

2. Personnel expenses

The personnel expenses consist of the following:

	1 Jan - 31 Mar 2013 €'000	1 Jan - 31 Mar 2012 €'000
Wages and salaries	26,011	24,579
Social security contributions	4,481	4,159
Pension expenses	60	103
Total	30,552	28,841

3. Other operating expenses

The other operating expenses consist of the following items:

	1 Jan - 31 Mar 2013 €'000	1 Jan - 31 Mar 2012 €'000
Office space costs	1,642	1,269
Insurance and other charges	169	148
Motor vehicle costs	850	1,224
Advertising costs	235	407
Stock exchange and entertainment costs	66	39
Hospitality and travelling expenses	804	776
Delivery costs	478	441
Third-party services	439	432
Repairs, maintenance, leasing	206	240
Communication and office expenses	489	433
Professional development and training costs	322	329
Legal and consultancy expenses	141	156
Fees and charges; costs of money transactions	62	97
Adjustments on receivables	13	64
Other operating expenses	351	206
Total	6,267	6,261

4. Income tax

The rate of income tax for the German companies was 30.21 percent (2012: 30.79 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 SE is shown below:

	1 Jan - 31 Mar 2013 €'000	1 Jan - 31 Mar 2012 €'000
Earnings before tax	4,605	4,847
Expected tax expense at rate for German com panies (30.21 percent; 2012: 30.79 percent))	1,391	1,492
- Difference from tax paid outside Germany	19	1
- Change in value adjustment of deferred tax assets on loss carryforwards	0	72
- Tax-exempt income / non tax-relevant capital losses on disposals	0	-63
- Actual income tax not relating to the period	-38	572
- Permanent differences: non-deductible operating expenses, as well as additions and
reductions in relation to trade tax	38	46
- Miscellaneous	5	-25
Total Group income tax	1,415	2,095

The actual tax rate is calculated as follows:

	€'000
Income before tax	4,605
Income tax	1,415
Actual tax expense rate	30.73%

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

	1 Jan - 31 Mar 2013 €'000	1 Jan - 31 Mar 2012 €'000
Actual income tax paid	1,750	2,254
Deferred taxes
Assets	-305	-99
Liabilities	-30	-60
	-335	-159
Group income tax	1,415	2,095

5. Minority interests

Minority interests account for 49 percent of acentrix GmbH's net income (€ 79 thousand) and 51 percent of the net loss of Glanzkinder GmbH (loss of € 56 thousand).

E. 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 SE. 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. Other related parties under IAS 24.9 b are:

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

Transactions with related parties were settled in the same way as arm's length transactions, and the payment terms are net 10 to 30 days.

The transaction volume of goods sold and services provided to related parties under IAS 24 in the first quarter of 2013 was € 781 thousand (gross), of which € 208 thousand was outstanding at the balance sheet date. This amount relates to goods/services purchased by AL-KO Kober AG and its subsidiaries.

The transaction volume of goods sold and services provided from related parties under IAS 24 was € 0 thousand (gross), of which € 0 thousand was outstanding at the balance sheet date. This amount relates to goods/services purchased by AL-KO Kober AG and its subsidiaries.

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 9 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 SE did not receive written notice from any shareholder disclosing a majority shareholding as defined in Section 20 of the above Act in the first quarter of 2013.