CANCOM SE — Interim / Quarterly Report 2015

Nov 12, 2015

INTERIM REPORT 30 SEPTEMBER 2015

Group key figures

Q3 AT A GLANCE

in € million	Jul. 1 - Sep. 30, 2015	Jul. 1 - Sep. 30, 2014	Changes
Sales revenues	226.9	206.1	10.1%
Gross profit	67.3	66.8	0.7%
EBITDA	17.2	14.7	17.0%
EBITDA margin in %	7.6%	7.1%	0.5%
EBITA	13.8	11.9	16.0%
EBIT	11.5	8.8	30.7%
Earnings per share from continuing operations in € (basic)	0.54 €	0.36 €	50.0%

9 MONTH

in € million	Jan. 1 - Sep. 30, 2015	Jan. 1 - Sep. 30, 2014	Changes
Sales revenues	657.4	574.3	14.5%
Gross profit	197.9	185.5	6.7%
EBITDA	40.9	35.4	15.5%
EBITDA margin in %	6.2%	6.2%	0.0%
EBITA	31.4	27.2	15.4%
EBIT	24.4	18.8	29.8%
Earnings per share from continuing operations in € (basic)	1.04 €*	0.80 €	30.0%
Average number of shares (in 1,000) (basic)	14,880	14,705	1.2%
Employees as at September 30	2,712	2,908	-6.7%
in € million	Sept. 30, 2015	Dec. 31, 2014	Changes
Balance sheet total	392.5	439.3	-10.7%
Equity	194.7	193.8	0.5%
Equity ratio in %	49.6%	44.1%	5.5%

* adjusted for a one-off effect on financial earnings of € 1.4 million

Revenue CANCOM Group
Jan. 1 - Sep. 30, 2014 and Jan. 1 - Sep. 30, 2015 (in € million)

2014	574.3
2015	657.4

Earnings per share CANCOM Group Jan. 1 - Sep. 30, 2014 and Jan. 1 - Sep. 30, 2015 (in Euro)

2014	0.80
2015	1.04

EBITDA CANCOM Group

Jan. 1 - Sep. 30, 2014 and Jan. 1 - Sep. 30, 2015 (in € million)

COMMENT

The earnings per stock (EPS) disclosed in the consolidated statement of income includes effects from amortizations pursuant to IFRS for purchase price allocation (ppa). These effects referring to EPS amount to 0.11 Euro in q3/15 and 0.33 Euro in nine months 2015 (q3/14: 0.12 Euro; 9M/14: 0.35 Euro).

Amortization effects are one-time in case of acquisitions, non-cash and decline over time.

Table of contents

2 Key figures

3	Table of contents
4	Preface
5 - 10	Consolidated Interim Management Report Q3 1) Fundamental information about the Group 2) Economic report 3) Stocks held by members of the Executive and	05 06-08
	Supervisory Boards as at September 30, 2014 4) Events of particular significance after the end of the reporting period 5) Risks of future development 6) Opportunities for future develpoment 7) Forecast 8) Management responsibility statement	08 08 08 08 09-10 10
11 - 12	Balance Sheet
13	Consolidated statement of income
14	Consolidated statement of comprehensive income
15	Statement of cash flows
16	Consolidated statement of changes in equity

• 17 18 Segment information
• 19 24 Notes to the consolidated accounts

Dear Stockholders,

The momentum built up in the first half of the year, combined with high demand for IT products and services, helped our business grow at an accelerated rate in the third quarter. Consolidated sales revenues grew by 10.1 percent to € 226.9 million in the first nine months of the year. Over the same period, consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose by 15.5 percent to reach a record level of € 40.9 million, compared with € 35.4 million in the previous year.

Business expectations in the German IT market and for the year 2015 as a whole remain positive, as found by the latest surveys conducted by BITKOM, the German Association for Information Technology, Telecommunications and New Media. We share this optimistic assessment and see the current conditions as a good, stable environment for the typically strong year-end business.

Finally, we would like to thank you, our stockholders, for the interest and the confidence you have shown in us by investing in CANCOM stocks.

Sincerely,

Klaus Weinmann CEO

Consolidated interim management report

relating to the consolidated financial statements, pages 11 et seq.

1. Fundamental information about the group

The CANCOM group is one of the leading providers of IT infrastructure and services in Germany and Austria. In addition to its locations in Germany, Austria and the U.S.A., the group has a representative office in Brussels, Belgium, in addition to an international network of partners. The group's integrated product and service offering covers the entire IT value chain, ranging from analysis and consulting to implementation and services.

The structure of the CANCOM group

CANCOM SE (also referred to as CANCOM), based in Munich, Germany, performs the central financial and management role for the equity investments held by the CANCOM group.

Areas of business

The cloud solutions operating segment comprises the CANCOM group's cloud and shared managed services business, including sales revenues from project-related cloud hardware, software and services. The cloud solutions segment provides analysis, advice, delivery, implementation and services, thus offering clients the necessary orientation and support for their conversion from traditional corporate IT systems to cloud computing. As part of its range of services, the CANCOM group can provide scalable cloud and managed services – in particular shared managed services – to run entire IT departments, or parts of them, for its clients. Distribution costs allocated to cloud distribution are included in the segment. The cloud business also benefits from synergies with CANCOM's central sales and marketing department, the costs of which are allocated to the IT solutions reportable segment.

The IT solutions operating segment of the CANCOM group offers comprehensive support for IT infrastructure and applications. The range of services offered includes IT strategy consulting, project planning and implementation, system integration, IT procurement via e-procurement services or as part of a project, in addition to professional IT services and support.

Focus of activities and sales markets

The CANCOM group is one of the largest independent integrated IT 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 from well-known manufacturers. The IT services range includes IT consulting, design of IT architecture and landscapes, IT strategy advice, design and integration of IT systems, as well as management of individual partial tasks and processes (out-tasking) or complete management of a company's IT systems under an outsourcing agreement.

The CANCOM group's client base therefore mainly includes commercial end-users, from small and medium enterprises to large companies and groups, as well as public-sector clients. Geographically, the CANCOM group operates primarily in Germany, Austria and Switzerland as well as in the U.S.A.

Explanation of the control system used within the group

To control and monitor the performance of the individual subsidiaries and the operating segments, CANCOM analyzes 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. It also takes into account any early warning data or indicators. Cash management procedures include daily status assessments.

Research and development activities

Innovation is very important for economic momentum and growth. As it is a service and trading enterprise, CANCOM does not conduct any research. Its development work focuses mainly on software solutions and applications in IT growth segments such as cloud computing, virtualization, mobile solutions, IT security and shared managed services. Development work is limited in scope and is mainly used for the group's own purposes. During the period under review, further development work was carried out on the group's own IT architecture platform, AHP Private Cloud, in addition to customization of in-house software used by the company.

2. Economic report

The general economic situation and the performance of the IT sector

The German economy appeared to settle into a pattern of moderate but steady growth in the summer. There were some positive developments, especially in the area of services and the industrial sector. Retail consumption remains a reliable pillar of the economy, thanks to the strong labor market and the positive trend in real income. The German Institute of Economic Research (Deutsches Institut für Wirtschaftsforschung, DIW) therefore anticipates a 0.5 percent rise in gross domestic product in the third quarter.

The mood among businesses is good and remains stable. The German IT sector is benefiting from this, as reflected by regular surveys undertaken by BITKOM, the German Association for Information Technology, Telecommunications and New Media.

Impact on the CANCOM group's business performance

The third quarter saw a continuation of CANCOM SE's growth. Sales revenues and profits were both up on the previous year. The figures for the first nine months of the current fiscal year overall also exceeded those for the same period of 2014. The positive trend in the group's sales revenues and profits is driven by the positive performance across all areas of the group – i.e. cloud and managed services as well as solutions such as IT mobility and security in the traditional integrated IT systems business.

Significant events and investments during the third quarter

Owing to the insolvency of a former subsidiary in the previous fiscal year, a long-term financial receivable of € 1.4 million was written off in full. The non-recurring item was already included in the financial profit/loss in the financial statements for the first half of the year.

Employees

As at September 30, 2015, the CANCOM group employed 2,712 people.

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

	Jan. 1.-Sep. 30, 2015 €'000	Jan. 1.-Sep. 30, 2014 €'000
Wages and salaries	109,815	104,146
Social security contributions	17,775	17,035
Pension provisions	154	167
Total	127,744	121,348

Earnings, financial and assets position of the CANCOM Group

a) Earnings position

The CANCOM Group recorded a growth in its sales revenues and profits in the first nine months of 2015 in comparison with the same period of 2014. To comply with the provisions of International Financial Reporting Standard (IFRS) 5, some adjustments had to be made to the consolidated figures for the previous year regarding areas that were classified as discontinued operations in 2014.

Consolidated sales revenues were up 14.5 percent, from € 574.3 million to € 657.4 million. The organic growth was 9.0 percent.

In Germany, sales revenues were up 13.1 percent, from € 523.6 million to € 592.0 million. The CANCOM Group's sales revenues generated from companies outside of Germany were up 28.7 percent from € 50.8 million to € 65.4 million.

In the cloud solutions segment, sales revenues grew by 30.9 percent, from € 72.8 million in 2014 to € 95.3 million in 2015. In the IT solutions segment, sales revenues were also up by 12.1 percent, from € 501.5 million in the previous year to € 562.0 million in 2015.

The CANCOM Group's consolidated gross profit for the first nine months of the year was up 6.7 percent year on year, from € 185.5 million in 2014 to € 197.9 million in 2015. The gross profit margin was 30.1 percent in comparison to 32.3 percent in 2014.

	CANCOM Group gross profit year-on-year comparison of figures for the first nine months (in € million)
2014		185.5
2015		197.9

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for the first nine months of the current fiscal year were up 15.5 percent year on year, from € 35.4 million in 2014 to € 40.9 million in 2015. The EBITDA margin as at September 30, 2015 is therefore 6.2 percent, on a par with that of the previous year.

Consolidated earnings before interest, tax and amortization (EBITA) amounted to € 31.4 million, an increase of 15.4 percent on the figure of € 27.2 million for the same period of 2014.

	CANCOM Group EBITA year-on-year comparison of figures for the first nine months (in € million)
2014	27.2
2015	31.4

Consolidated earnings before interest and tax (EBIT) amounted to € 24.4 million, up 29.8 percent from € 18.8 million in 2014.

At € 8.6 million, the net income for the period after deduction of minority interests was below the 2014 figure (€11.2 million). The after-tax profit from continuing operations was € 14,0 million, compared with € 11.5 million in 2014. Earnings per share from continuing operations for the first nine months of 2015 therefore amounted to € 0.95, compared with € 0.80 in the previous year.

The order position

In the cloud solutions segment, and large parts of the IT solutions 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, and they are therefore not published. At the time this management report was written, capacity utilization among our consultants was good in both segments.

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 favorable refinancing rates.

Notes on the capital structure

On the assets side of the consolidated balance sheet, there was a decrease in current assets from € 285.7 million to € 238.8 million between December 31, 2014 and September 30, 2015. Cash and cash equivalents were also down from € 114.3 million to € 62.5 million (September 30, 2014: € 77.0 million) in the same period. Trade accounts receivable decreased to € 133.7 million as at September 30, 2015 (September 30, 2014: € 117.8 million), compared with € 134.8 million as at December 31, 2014. Inventories increased from € 22.7 million to € 26.8 million (September 30, 2014: € 27.9 million).

At € 153.7 million, non-current assets as at September 30, 2015 were almost unchanged in comparison with December 31, 2014. They mainly consist of property, plant and equipment, in addition to intangible assets and goodwill.

On the liabilities side of the balance sheet, there was a substantial reduction in current liabilities from € 169.5 million at December 31, 2014 to € 125.3 million in the first nine months of the year (September 30, 2014: € 118.9 million). This was essentially the result of a decrease in trade accounts payable from € 108.4 million to € 80.4 million at September 30, 2015 (September 30, 2014: € 76.2 million).

Non-current liabilities, consisting of debt with a residual term of at least one year, decreased from € 76.0 million as at December 31, 2014 to € 72.6 million as at September 30, 2015 (September 30, 2014; € 79.5 million).

Nominal equity recorded improved growth from € 193.8 million as at December 31, 2014 to € 194.7 million as at September 30, 2015. Overall, this resulted in an improved equity ratio of 49.6 percent at the end of the first nine months, up from 44.1 percent as at December 31, 2014, with total assets down to € 392.5 million, compared with € 439.3 million as at December 31, 2014.

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 € 23.4 million as at September 30, 2015 compared with a negative cash flow of € 8.1 million in the same period of 2014.

There was a negative cash flow from investing activities of € 19.1 million, compared with a negative cash flow of € 30.2 million in 2014.

The negative cash flow from financing activities was € 9.6 million, compared with € 37.1 million in 2014.

Overall, this resulted in cash and cash equivalents from continuing operations of € 62.5 million, compared with € 77.0 million in 2014.

3. Stocks held by members of the Executive and Supervisory Boards as at September 30, 2015

Total number of stocks	14,879,574	100%
Executive Board
Klaus Weinmann	100,000	0.7 %
Supervisory Board
Raymond Kober	40,000	0.3 %
Dominik Eberle	10,000	0.1 %

4. Events of particular significance after the end of the reporting period

CANCOM SE increased its shareholding in Pironet NDH Aktiengesellschaft to 84.6 percent after the reporting date following a public (cash) offer to the company's stockholders.

CANCOM has acquired all the stocks of Xerabit GmbH, based in Unterschleissheim near Munich, Germany. The purchase is subject to the approval of the antitrust authorities, and is documented in a notarized agreement dated November 11, 2015. Xerabit is a provider of consulting and integrated IT solutions for data centers. The company has prestigious enterprise clients in the insurance and automobile sectors, among other areas. The company currently employs 25 people, and in the fiscal year 2014 it generated sales revenues of approximately € 27 million. The acquisition expands CANCOM's consulting expertise in the data center business, and brings additional major clients and multinational corporations to its client base.

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 fiscal year. Details of the risks can be found in the annual report for 2014, starting on page 30. The annual report can be downloaded from www.cancom.com/berichte or obtained in printed form, 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 fiscal year. Details of the opportunities can be found in the annual report for 2014, starting on page 40. The annual report can be downloaded from www.cancom.com/berichte or obtained free of charge from the company.

7. Forecast

According to the experts, there should be some growth in the German economy in 2015. The German federal government expects an increase of 1.7 percent in gross domestic product (GDP), while the autumn forecasts of the leading economic research institutes put GDP growth at 1.8 percent.

	Gross domestic product 2015 (real change compared with 2014, as a percentage)
Germany	+ .7
Euro area	+ 1.5
U.S.A.	+ 2.4
World	+ 3.1

Forecast: Deutsche Bank Economic Research, October 24, 2015

The German Association for Information Technology, Telecommunications and New Media (BITKOM) has revised upwards its growth forecast for the German ICT market. The sector continues to be driven by information technology, which benefits from the transformation to a digital economy, resulting in companies in all sectors gearing their business to digitization. According to the BITKOM forecast, IT revenues should rise by 3.5 percent to € 80.4 billion in the current year – considerably more strongly than the rest of the economy. The fastest rate of growth in the current year is likely to be seen in the software segment, where turnover is expected to increase by 5.4 percent to € 20.1 billion. The IT services business has grown continuously over the past few years. In 2015, an increase of 3.0 percent is expected to bring turnover in the segment to € 37.3 billion. Turnover in the IT hardware segment should also increase this year. Experts forecast that this segment will grow by 2.8 percent to € 23.0 billion.

Anticipated performance of the CANCOM group

Thanks to its proven expertise and outstanding market position in IT growth areas such as cloud computing, mobility, IT security and managed services, CANCOM aims to continue growing – organically and through acquisitions – at a faster rate than the IT market, thus steadily expanding its market share. For this purpose, the CANCOM group geared its business policy to the IT growth areas at an early stage, and its sales and services structure have been designed around them. With its integrated portfolio of services across all areas of IT, and its flexibility in providing individually tailored packages for its clients, CANCOM has major client advantages to enable it to penetrate the market even further and more comprehensively. In addition, the increasing complexity of IT is stretching smaller integrated systems providers to the limits of their capabilities. This, combined with the withdrawal of larger providers from individual business areas, could result in the CANCOM group gaining new clients and orders – with positive impacts on the IT solutions and cloud solutions business.

In the past year, the Executive Board set the course for further growth and good performance in the future. CANCOM focuses on profitable business in the traditional IT environment and withdraws without hesitation from low-growth or declining areas.

CANCOM has an established market presence and is close to its clients in the German-speaking area (Austria, Germany and Switzerland). It is represented all over Germany and Austria by its many service and consulting locations. Through its subsidiaries in the U.S.A. and Belgium, as well as its global partner networks, the CANCOM group has an international presence in selected markets. CANCOM plans to continue strengthening its market position, primarily in the IT environment in the German-speaking area. It intends to achieve this partly by selective acquisitions, thus taking advantage of economies of scale and synergies in the market. The business environment continues to offer favorable conditions for this policy.

Against the background of the group's successful performance in 2014 and in view of its favorable positioning in the emerging market of cloud computing and in the IT market as a whole, the Executive Board expects further growth if the demand for IT products and services remains steady.

The Executive Board currently expects a further increase in the sales revenues and gross profit of the group as a whole in the fiscal year 2015. The growth of the CANCOM group should continue to exceed the growth of the German IT market, the market of relevance to the group. In the fiscal year 2015, the Executive Board expects acquisition-based growth in both operating segments to ease off in comparison with 2014. There are takeover targets, but many of them are not sufficiently interesting in terms of their price. Although it is difficult to forecast, it is assumed that the organic growth of the group will continue at a rate comparable to that in 2014, with acquisition-based growth at a similar rate. The Executive Board anticipates a further increase in the CANCOM group's EBITDA, which should grow faster than the organic growth in sales revenues, owing to an improved product mix.

The Executive Board anticipates that growth in the sales revenues, gross profit and EBITDA generated by the IT solutions operating segment will outstrip market growth throughout the whole fiscal year 2015. For the cloud solutions segment, it expects significant increases in all three figures.

Munich, Germany, November 2015

CANCOM SE

The Executive Board

8. Disclaimer regarding forward-looking statements

This document has not been audited. It contains forward-looking statements and information based on the current expectations, assumptions and estimates of the Executive Board of CANCOM SE, and other information currently available to the management. The words 'expect', 'assume', 'believe', 'estimate', 'presume', 'calculate', 'intend', 'could', 'plan', 'should', or similar, are used to indicate forward-looking statements. All statements with the exception of facts regarding the past are forward-looking statements. These statements include expectations regarding the availability of products and services, the financial and earnings position, the business strategy and the Executive Board's plans for future operating activities, economic performance and all statements regarding assumptions. Although we take the greatest of care when making these statements, we cannot guarantee their correctness, especially in our forecast. Various known and unknown risks, uncertainties and other factors may lead to the actual events deviating significantly from those contained in the forward-looking statements.

The following influencing factors are, among others, relevant in this respect: external political influences, changes in the general economic and business situation; 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 investment behavior of target client groups etc. and changes to the business strategy. CANCOM cannot guarantee the pertinence, accuracy, completeness or correctness of the information or opinions in this document. 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	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Current assets
Cash and cash equivalents		62,489	114,295	77,039
Assets held for sale		0	2,291	0
Trade accounts receivable		133,700	134,846	117,766
Other current financial assets	B.1.	7,579	7,522	4,681
Inventories		26,767	22,658	27,884
Orders in process		831	560	1,088
Prepaid expenses and other current assets	B.2.	7,464	3,535	5,043
TOTAL current assets		238,830	285,707	233,501
Non-current assets
Property, plant and equipment		39,582	37,654	38,114
Intangible assets		28,070	34,295	42,011
Goodwill		68,098	66,923	66,951
Long-term financial assets		66	67	63
Long-term equity investments		509	393	416
Loans		2,395	1,501	97
Other financial assets		7,966	4,662	2,883
Deferred tax resulting from temporary differences	B.3.	2,653	3,071	2,487
Deferred tax resulting from tax loss carryforwards	B.3.	3,336	4,238	4,415
Other assets		976	771	720
TOTAL non-current assets		153,651	153,575	158,157
Total assets		392,481	439,282	391,658

EQUITY AND LIABILITIES

(in € 000)	Notes	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Current liabilities
Short-term loans and current portion of long-term loans		1,442	1,711	1,737
Participation rights and subordinated loans, current portion		1,996	1,985	0
Trade accounts payable		80,441	108,440	76,167
Prepayments received		4,644	9,040	5,006
Other current financial liabilities	B.4.	6,794	3,629	1,915
Provisions	B.5.	4,555	4,753	5,249
Deferred income		2,874	2,413	3,772
Income tax liabilities		3,000	7,186	5,189
Other current liabilities	B.6.	19,500	28,295	19,817
Liabilities in connection with assets held for sale		0	2,022	0
Total current liabilities		125,246	169,474	118,852
Non-current liabilities
Long-term loans		3,058	3,632	3,821
Convertible bond	B.7.	40,108	39,144	38,849
Profit participation capital and subordinated loans		4,656	4,332	6,213
Deferred income		3,120	3,130	3,334
Deferred taxes from temporary differences	B.8.	8,546	10,552	12,892
Pension provisions		1,777	1,796	1,431
Other non-current financial liabilities	B.9.	2,756	2,843	2,697
Other non-current liabilities		8,542	10,588	10,275
TOTAL non-current liabilities		72,563	76,017	79,512
Equity capital
Capital stock		14,880	14,880	14,880
Capital reserves		110,197	110,197	110,199
Net retained profits (including revenue reserves)		61,098	59,967	58,789
Equity difference resulting from currency translation and price changes		894	519	537
Minority interests		7,603	8,228	8,889
Total equity capital		194,672	193,791	193,294
Total liabilities		392,481	439,282	391,658

CONSOLIDATED STATEMENT OF INCOME

			Q3		9 Months
(in € 000)	Notes	Jul. 1 - Sep. 30, 2015	Jul. 1 - Sep. 30, 2014	Jan. 1 - Sep. 30, 2015	Jan. 1 - Sep. 30, 2014
Sales revenues		226,896	206,080	657,356	574,307
Other operating income	D.1.	272	206	772	648
Other own work capitalized		363	358	1,254	813
Gross revenue for the period		227,531	206,644	659,382	575,768
Cost of materials and purchased services		-160,232	-139,828	-461,436	-390,270
Gross profit		67,299	66,816	197,946	185,498
Personnel expenses	D.2.	-40,020	-41,950	-127,744	-121,348
Depreciation on property, plant and equipment and amortization of intangible assets		-5,716	-5,972	-16,456	-16,551
Other operating expenses	D.3.	-10,067	-10,133	-29,312	-28,759
Operating result		11,496	8,761	24,434	18,840
Interest and similar income		47	105	450	325
Interest and similar expenses		-790	-1,118	-2,457	-2,008
Write-downs of long-tern financial assets	D.4.	-13	0	-1,414	0
Share in profit or loss of associated companies accounted for by the equity method		0	70	116	141
Currency translation gains/ losses		-62	-27	19	-36
Earnings before taxes		10,678	7,791	21,148	17,262
Income tax	D.5.	-3,232	-2,690	-7,144	-5,750
Earnings after taxes from continuing operations		7,446	5,101	14,004	11,512
Earnings from discontinued operations	D.6.	-4,258	-204	-5,590	-525
Net income/ loss for the period		3,188	4,897	8,414	10,987
thereof attributable to the stockholders of the parent company		3,710	5,013	8,570	11,213
thereof attributable to minority interests		-522	-116	-156	-226
Average number of stocks outstanding (basic)		14,879,574	14,615,791	14,879,574	14,704,685
Average number of stocks outstanding (diluted)		15,935,094	15,671,301	15,935,094	15,431,563
Earnings per stock from continuing operations (basic) in EUR		0.54	0.36	0.95	0.80
Earnings per stock from continuing operations (diluted) in EUR		0.50	0.33	0.89	0.76
Earnings per stock from discontinued operations (basic) in EUR		-0.29	-0.01	-0.38	-0.04
Earnings per stock from discontinued operations (diluted) in EUR		-0.27	-0.01	-0.35	-0.03

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOM

			9 Months
Jul. 1 - Sep. 30, 2015	Jul. 1 - Sep. 30, 2014	Jan. 1 - Sep. 30, 2015	Jan. 1 - Sep. 30, 2014
3,188	4,897	8,414	10,987
-11	0	544	-66
2	0	-169	20
-9	0	375	-46
3,179	4,897	8,789	10,941
3,701	5,013	8,945	11,167
-522	-116	-156	-226
		Q3

STATEMENT OF CASH FLOWS

(in € 000)	Jan. 1 - Sep. 30, 2015	Jan. 1 - Sep. 30, 2014
Cash flow from ordinary activities
Profit for the period before taxes and minority interests	21,148	17,262
Adjustments
+/- Depreciation on property, plant and equipment and amortization of intangible assets	16,456	16,551
+/- Changes in non-current provisions	-30	-165
+/- Changes in current provisions	-1,015	427
+/- Income/ loss on the sale of intangible assets, property, plant and equipment and
long-term financial assets	609	-695
+ Interest expenses	2,007	1,683
+/- Changes in inventories	-4,109	-8,173
+/- Changes in trade accounts receivable and other accounts receivable	-4,664	12,759
+/- Changes in trade accounts payable and other accounts payable	-38,867	-39,868
- Interest paid	-198	-278
+/- Income taxes paid and refunded	-15,354	-7,452
+/- Non-cash expenses/ income	1,941	-142
+/- Cash inflow/outflow from discontinued operations	-1,299	-4
Cash flow from investing activities
+/- Acquisition of subsidiaries and equity instruments of other companies	-2,694	-31,163
+/- Cash acquired on the purchase of stocks	0	19,181
+/- Income/payment from sale of former consolidated subsidiaries	-983	300
- Acquisition of financial assets	-2,303	0
- Payments for additions to intangible assets and property, plant and equipment	-12,103	-19,174
+ Income from disposal of intangible assets, property, plant and equipment, and long-term financial assets	605	342
- Cash transferred on the sale of shares	-2,076	0
+ Interest received	450	325
Net cash used in investing activities Cash flow from financing activities	-19,104	-30,189
+/- Capital stock increase expenses	0	-6
+ Cash inflow from convertible bond	0	45,000
- Repayment of long-term borrowings (including current portion)	-1,061	-656
+/- Changes in short-term borrowings	149	89
- Interest paid	-809	-1,303
- Dividends paid	-7,563	-5,847
+/- Cash inflow/ outflow from finance lease	-340	-165
Net cash used in financing activities	-9,624	37,112
Net increase/ decrease in cash and cash equivalents	-52,103	-1,172
+/- Exchange rate-related changes in cash	297	540
+/- Cash and cash equivalents at beginning of period	114,295	77,733
Cash and cash equivalents at end of period	62,489	77,101
Breakdown:
Cash and cash equivalents	62,489	77,039
Cash and cash equivalents from discontinued operations	0	62
	62,489	77,101

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	Reserve change of actuarial gains/ losses from pensions	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	in €'000
Dezember 31, 2013 Capital increase	14,616 264	14,616 264	94,578 9,681	28,597	-32	0	0	-153	24,978	162,584 9,945	95	162,679 9,945
Changes in reserves: Costs of capital increase			-4							-4		-4
Convertible bonds			5,942							5,942		5,942
Transfer net profit / retained earnings				6,023					-6,023	0		0
Payout in financial year									-5,847	-5,847	0	-5,847
Comprehensive income for the period					548	3	-268		12,660	12,943	-1,363	11,580
Acquisition of minority interests										0	10,586	10,586
Effect from disposal of minority interests										0	-1,090	-1,090
Dezember 31, 2014	14,880	14,880	110,197	34,620	516	3	-268	-153	25,768	185,563	8,228	193,791
Transfer net profit / retained earnings				5,856					-5,856	0		0
Payout in financial year									-7,440	-7,440	-124	-7,564
Comprehensive income for the period					375	0	0		8,571	8,946	-156	8,790
Acquisition of minority interests				0						0	-240	-240
Effect from disposal of minority interests										0	-105	-105
September 30, 2015	14,880	14,880	110,197	40,476	891	3	-268	-153	21,043	187,069	7,603	194,672

Segment information – IFRS

Segmentinformationen	Cloud solutions		IT solutions
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
	€'000	€'000	€'000	€'000
Sales revenues
- External sales	95,335	72,811	562,002	501,496
- Intersegment sales	1,239	486	4,195	1,530
- Total sales revenues	96,574	73,297	566,197	503,026
- Cost of materials and purchased services	-46,614	-35,820	-419,553	-356,409
- Personnel expenses	-23,022	-17,992	-98,816	-98,584
- Other income and expenses	-6,159	-4,795	-19,583	-20,930
EBITDA	20,779	14,690	28,245	27,103
- Depreciation and amortization	-4,871	-4,346	-11,275	-12,019
Betriebsergebnis (EBIT)	15,908	10,344	16,970	15,084
- Interest income	175	128	273	214
- Interest expenses	-1	-13	-1,733	-1,272
- Write-downs of long-term financial assets			-642
- Share in profit or loss of associated companies accounted for by the equity method	116	141	0	0
Result from ordinary activities	16,198	10,600	14,868	14,026
- Currency translation gains/ losses
Earnings before taxes	16,198	10,600	14,868	14,026
- Income tax
- Discontinued operations	-3,437	286	-1,999	-811
Consolidated net income
thereof attributable to the stockholders of the parent company
thereof attributable to minority interests
Other information
- Investments in associates	0	0	0	0
- Assets1	83,602	84,109	267,254	253,071
- investments1	4,835	59,417	10,774	63,786

1) Assets and investments including goodwill from capital consolidation

2) Tax assets

	Consolidated		Reconciliation		Other companies		Totals
Sep. 30, 2014 €'000	Sep. 30, 2015 €'000	Sep. 30, 2014 €'000	Sep. 30, 2015 €'000	Sep. 30, 2014 €'000	Sep. 30, 2015 €'000	Sep. 30, 2014 €'000	Sep. 30, 2015 €'000
				0	19	574,307	657,337
		-2,016	-5,434	0	0	2,016	5,434
574,307	657,356	-2,016	-5,434	0	19	576,323	662,771
-390,270	-461,436	1,959	4,731	0	0	-392,229	-466,167
-121,348	-127,744	0	0	-4,772	-5,906	-116,576	-121,838
-27,298	-27,286	57	703	-1,630	-2,247	-25,725	-25,742
35,391	40,890	0	0	-6,402	-8,134	41,793	49,024
-16,551	-16,456	0	0	-186	-310	-16,365	-16,146
18,840	24,434	0	0	-6,588	-8,444	25,428	32,878
	450	-549	-964	532	966	342	448
	-2,457	549	964	-1,272	-1,687	-1,285	-1,734
	-1,414	0	-13	0	-759	0	-642
	116	0	0	0	0	141	116
	21,129	0	-13	-7,328	-9,924	24,626	31,066
	19	-36	19	0		0	0
	21,148	-36	6	-7,328	-9,924	24,626	31,066
	-7,144	-5,750	-7,298
	-5,590	0	0	0	0	-525	-5,436
	8,414
	8,570
	-156
			Reconciliation2
	509			416	509	0	0
	391,972	9,475	9,961	44,587	31,155	337,180	350,856
	15,858			6,666	249	123,203	15,609

A. The principles adopted for the consolidated financial statements

1. General information

The consolidated financial statements of CANCOM SE and its subsidiaries ('the CANCOM group' or 'the group') for the fiscal year 2015 were drawn up according to the International Financial Reporting Standards (IFRS) or the International Accounting Standards (IAS).

The consolidated interim financial statements were drawn up in euro. All amounts are shown in thousand euro (€ thousand) unless otherwise stated. In individual cases rounding of figures may result in inconsistencies between totals and sums of constituent parts. For the same reason, percentage may not exactly match the aggregate values shown.

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 fiscal year 2014, which can be downloaded from www.cancom.de.

2. Reporting entity

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

CANCOM GmbH (subsidiary of CANCOM SE) has sold its stocks in acentrix GmbH. The transaction is documented in a stock purchase and assignment agreement dated March 25, 2015. The stocks were transferred on March 31, 2015.

The table below shows the impact on the reporting entity of the sale of acentrix GmbH:

	March 31, 2015 €'000
Cash and cash equivalents	-43
Trade accounts receivable	-811
Other current financial assets	-9
Orders in process	-159
Prepaid expenses and other current assets	-121
Total current assets	-1,143
Property, plant and equipment (tangible assets)	-115
Intangible assets	-15
Goodwill	-59
Deferred taxes from temporary differences	-35
Total non-current assets	-224
Total assets	-1,367
Trade accounts payable	-79
Other current financial liabilities	-30
Provisions	-3
Other current liabilities	-299
Total current liabilities	-411
Deferred taxes from temporary differences	-30
Other non-current financial liabilities	-663
Other non-current liabilities	-2
Total non-current liabilities	-695
Total liabilities	-1,106
Net assets sold	-261

Balance as at

Pironet NDH Aktiengesellschaft, a subsidiary of CANCOM SE, has sold its stocks in Pirobase Imperia GmbH (formerly Imperia AG). The sale is documented in a contract of sale dated May 19/20, 2015, and the stocks were transferred on June 30, 2015.

Owing to the company's classification as a discontinued operation, its assets and liabilities were recognized as held for sale.

The table below shows the impact on the reporting entity of the sale of Pirobase Imperia GmbH (preliminary balance sheet):

	Balance as at June 30, 2015 €'000
Assets held for sale	-9,536
Total current assets	-9,536
Total assets	-9,536
Liabilities directly associated with assets held for sale	-6,109
Total current liabilities	-6,109
Total liabilities	-6,109
Net assets sold	-3,427

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 fiscal year 2014.

B. Notes to the consolidated balance sheet

1. Other current financial assets

This item comprises claims to the payment of a purchase price (€ 3,562 thousand), bonuses due from suppliers (€ 2,785 thousand), creditors with a debit balance (€ 543 thousand), marketing revenue (€ 442 thousand), receivables from employees (€ 181 thousand), and receivables from the disposal of affiliated companies (€ 66 thousand).

2. Prepaid expenses and other current assets

This item mainly consists of other current assets such as tax refunds (€ 4,567 thousand), commission income (€ 448 thousand), insurance refunds (€ 177 thousand), and receivables from social insurance institutions (€ 42 thousand).

The prepaid expenses (€ 2,167 thousand) include deferred insurance premiums and expenses paid in advance.

3. Deferred tax assets

The deferred tax assets are as follows:

Deferred tax from	temporary differences €'000	tax loss carry forwards €'000
As at January 1, 2015	3,071	4,238
Derecognition due to deconsolidation, recognised in equity	-110
Income tax expense/revenue from profit and loss calculation	-323	-1,283
Income tax expense from profit and loss calculation included in
discontinued operations	2	382
Currency difference	13	-1
As at September 30, 2015	2,653	3,336

As at September 30, 2015, the CANCOM group had corporate tax loss carryovers of € 11.2 million and trade tax loss carryovers of € 11.5 million. The unused corporate tax losses for which no deferred tax claim was recognized in the balance sheet amounted to € 1.6 million. The trade tax loss carryovers for which no deferred tax claim was recognized also amounted to € 1.6 million. On the basis of the planned tax results, it is expected that the capitalized deferred tax advantages from loss carryovers will be realized.

The deferred taxes from temporary differences are the result of differences in intangible assets (€ 751 thousand), property, plant and equipment (€ 689 thousand), other financial liabilities (€ 415 thousand), pension provisions (€ 383 thousand), provisions (€ 178 thousand), other liabilities (€ 152 thousand), and intragroup accounts payable (€ 85 thousand).

4. Other current financial liabilities

This item refers to liabilities to former affiliated entities (€ 3,294 thousand), debtors with a credit balance (€ 2,375 thousand), outstanding bills of charges (€ 457 thousand), purchase price liabilities (€ 350 thousand), Supervisory Board remuneration (€ 221 thousand), rent (€ 87 thousand) and liabilities to stockholders (€ 10 thousand).

5. Other provisions

The provisions mainly include the variable component of the purchase price for stocks in affiliated companies (€ 10,384 thousand), guarantees and warranties (€ 1,342 thousand), termination and severance payments (€ 412 thousand), contingent risks (€ 221 thousand), salaries (€ 195 thousand), financial statement costs (€ 164 thousand), archiving costs (€ 119 thousand), and provisions for additional leasing costs (€ 67 thousand).

The total provisions include long-term provisions of € 8,542 thousand, which are disclosed under other non-current liabilities. These provisions are for variable components of purchase prices for corporate acquisitions (€ 7,242 thousand), guarantees and warranties (€ 594 thousand), termination payments, for which a provision is legally mandatory in Austria (€ 246 thousand), anniversaries (€ 195 thousand), decommissioning and restoration liabilities (€ 148 thousand), archiving costs (€ 94 thousand), and additional leasing costs (€ 23 thousand).

6. Other current liabilities

Other current liabilities mainly comprise bonuses to board members, officers and staff (€ 7,168 thousand), vacation entitlements and overtime (€ 4,214 thousand), sales tax (€ 3,420 thousand), tax on salaries and church tax (€ 2,185 thousand), fees and charges (€ 815 thousand), payments to employers' liability insurance association (€ 493 thousand), wages and salaries (€ 477 thousand), compensation levy for non-employment of the severely handicapped (€ 173 thousand), and social security contributions (€ 112 thousand).

7. Convertible bonds

In March 2014, CANCOM SE issued a convertible bond for a total nominal amount of € 45,000 thousand. The bond matures in March 2019. The denomination per unit is € 100,000, and holders are entitled to convert the bond into up to 1,055,510 new no-par value bearer stocks in CANCOM SE. The initial conversion price is € 42.6334 per stock (and has been € 42.4948 each since June 19, 2015). The conversion ratio is therefore 2,345.5788 stocks per bond at the nominal amount of € 100,000. The conversion right for the convertible bond can be exercised throughout its term to maturity. The bond has a coupon of 0.875 percent per annum. Interest payments will be made annually on March 27, starting on March 27, 2015.

On the balance sheet, the convertible bond will be split into an equity component and a debt component. The market value of the debt component to be recognized is € 38,975 thousand, taking into account the issuing costs. This value was calculated using the binomial model.

The resulting value of the equity component is € 6,025 thousand. This takes into account deferred taxes in the capital reserves. An interest expense of € 1,259 thousand was recognized for the bond in the period from January 1 to September 30, 2015.

8. Deferred tax liabilities

The deferred tax liabilities are as follows:

	€'000
As at January 1, 2015	10,552
Derecognition due to deconsolidation, recognized in equity	-30
Tax revenue from profit and loss calculation	-2,393
Currency differences	417
As at September 30, 2015	8,546

The deferred tax liabilities arise from deviations from the tax balance sheets. They are the result of the recognition and revaluation of intangible assets (€ 6,619 thousand), other financial assets (€ 709 thousand), intragroup accounts receivable (€ 440 thousand), property, plant and equipment (tangible assets) (€ 266 thousand), software development costs (€ 261 thousand), convertible bonds (€ 177 thousand), provisions (€ 57 thousand), prepaid expenses (€ 6 thousand), equity-accounted investments (€ 5 thousand), contracts in process (€ 4 thousand), capital from profit participation capital and subordinated loans (€ 1 thousand) and financial assets (€ 1 thousand).

The deferred tax liabilities are recognized at an individual tax rate of between 25 percent (for the Austrian subsidiary) and 39.83 percent (for the U.S. subsidiary).

9. Other non-current financial liabilities

Other non-current financial liabilities include purchase price liabilities of € 1,406 thousand, debtors with a credit balance totaling € 823 thousand, rent obligations of € 522 thousand, and a motor vehicle loan of € 5 thousand.

C. Segment information

Description of segments subject to mandatory reporting

The cloud solutions operating segment comprises PIRONET NDH Datacenter AG & Co. KG, PIRONET NDH EDI-Services GmbH, PIR-ONET NDH Enterprise Solutions GmbH and Pironet NDH Aktiengesellschaft, in addition to the divisions of CANCOM GmbH and CANCOM DIDAS GmbH allocated to the cloud solutions segment. This operating segment comprises the CANCOM group's cloud and shared managed services business, including sales revenues from cloud hardware allocated to the projects. The segment's activities range from analysis and consulting to delivery, implementation and services. This means it offers clients the necessary orientation and support for their transformation from traditional corporate IT systems to cloud computing. As part of its range of services, the CANCOM group is able to run parts of, or entire, IT departments for its clients, using scalable cloud and managed services – especially shared managed services. Distribution costs allocated to cloud distribution are included in the segment. The cloud business also benefits from synergies with CANCOM's central sales and marketing service, the costs of which are allocated to the IT solutions reportable segment.

Due to the sale of the content management division of Pironet NDH Aktiengesellschaft, the continuing operations of the Pironet subgroup now only include its divisions in the cloud solutions segment. As a result, the central units of Pironet NDH Aktiengesellschaft are now all allocated to the cloud solutions segment. The previous year was fully reclassified in accordance with the regulations of IFRS 8.

The IT solutions operating segment comprises CANCOM GmbH, CANCOM Computersysteme GmbH, CANCOM a + d IT solutions GmbH, CANCOM (Switzerland) AG, CANCOM NSG GmbH, CANCOM NSG GIS GmbH, CANCOM NSG SCS GmbH, CANCOM NSG ICP GmbH, CANCOM on line GmbH, Pirobase Imperia GmbH (formerly Imperia AG), CANCOM physical infrastructure GmbH, acentrix GmbH, CANCOM Inc., HPM Incorporated, Verioplan GmbH and the division of CANCOM DIDAS GmbH allocated to the IT solutions segment, less the division of CANCOM GmbH allocated to the cloud solutions segment. This operating segment of the CANCOM group offers comprehensive support for IT infrastructure and IT applications. The range of services offered includes IT strategy consulting, project planning and implementation, system integration, IT procurement via e-procurement services or as part of a project, as well as professional IT services and support.

The 'other companies' are CANCOM SE, CANCOM VVM GmbH, CANCOM Financial Services GmbH and the division of CANCOM DIDAS GmbH allocated to the 'other companies' segment. CAN-COM SE and the division of CANCOM DIDAS GmbH allocated to this segment perform the staff and/or management function. As such, they provide a range of services for their subsidiaries. The costs of central management of the group and investments in internal group projects also fall within this segment.

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 client location		Sales revenue according to company location
	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000
Germany	548,760	499,627	592,001	523,552
Outside Germany	108,596	74,680	65,355	50,755
Group	657,356	574,307	657,356	574,307

		Non-current assets
	Sep. 30, 2015 €'000	Sep. 30, 2014 €'000
Germany	128,388	130,822
Outside Germany	19,115	21,614
Group	147,503	152,436

Non-current assets include property, plant and equipment (tangible assets), intangible assets, goodwill, long-term equity investments in associated companies 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

	Jan. 1 - Sep. 30, 2015	Jan. 1 - Sep. 30, 2014
	€'000	€'000
Rent	0	5
Income not relating to the period	331	250
Government grants	393	356
Compensation for damages	11	0
Other operating income	37	37
Total	772	648

2. Personnel expenses

The personnel expenses consist of the following:

	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000
Wages and salaries	109,815	104,146
Social security contributions	17,775	17,035
Pension expenses	154	167
Total	127,744	121,348

3. Other operating expenses

The other operating expenses consist of the following items:

	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000
Office space costs	6,831	6,583
Insurance and other charges	667	712
Motor vehicle costs	3,960	3,951
Advertising costs	1,736	1,962
Stock exchange and entertainment costs	234	412
Hospitality and traveling expenses	3,746	3,702
Delivery costs	2,350	2,005
Third-party services	1,791	1,646
Repairs, maintenance, leasing	1,443	1,324
Communications and office costs	1,834	1,729
Professional development/training costs	1,110	926
Legal and consultancy costs	1,248	1,569
Fees and charges, money transactions costs	628	633
Value adjustments on receivables	193	8
Other operating expenses	1,541	1,597
Total	29,312	28,759

4. Write-downs of long-term financial assets

Owing to the insolvency of Glanzkinder GmbH, a subsidiary that was sold in the previous fiscal year, a long-term financial receivable of € 1,414 thousand was written off in full.

5. Income tax

The rate of income tax for the German companies was 31.06 percent (2014: 30.61 percent). This is made up of corporate tax, trade tax and solidarity surcharge.

The divergence between the tax expenses reported and those at the tax rate of CANCOM SE is shown below:

	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000
Earnings before tax	21.148	17,262
Expected tax expense at rate for German companies (31.06 percent; 2014: 30.61 percent)	6,569	5,284
- Difference from tax paid outside Germany	-135	-58
- Change in value adjustment of deferred tax assets on loss carryforwards - Tax-exempt income/	10	259
non tax-relevant losses on disposals	537	19
- Actual income tax not relating to the period	63	-22
- Permanent differences: non-deductible operating expenses as well as additions and reductions
in relation to trade tax	71	273
- Effects of tax rate changes	11	0
- Other	18	-5
Total group income tax	7,144	5,750

The actual tax rate is calculated as follows:

	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000
Income before tax	21,148	17,262
Income tax	7,144	5,750
Actual tax expense rate	33.78%	33.31%

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

	Jan. 1 - Sep. 30, 2015 €'000	Jan. 1 - Sep. 30, 2014 €'000
Actual income tax paid	7,898	7,198
Deferred taxes:
assets	1,606	756
liabilities	-2,360	-2,241
	-754	-1,485
Deferred tax from items directly recognized in equity	0	37
Group income tax	7,144	5,750

6. Discontinued operations

The impact of discontinued operations on the preliminary consolidated statement of income was a loss of € 5,590 thousand (2014: loss of € 525 thousand).

This amount consists of income (including other own work capitalized and other operating income) of € 4,162 thousand (2014: € 10,252 thousand) and expenditure of minus € 9,741 thousand (2014: minus € 10,974 thousand), resulting in a pre-tax loss of € 5,579 thousand (2014: minus € 722 thousand). There was a related income tax loss of € 11 thousand (2014: income tax gain € 197 thousand).

Discontinued operations mainly include the results generated by Pirobase Imperia GmbH (formerly Imperia AG) in the current fiscal year up to the date of disposal of the subsidiary, which has already been sold. The previous year's figures have been adjusted accordingly. The acquirer and the seller have failed to reach an agreement on the relevant completion accounts. In these financial statements, the values have been processed entirely from the perspective of the acquirer. Any further information obtained during a dispute – if necessary in court – could therefore result in an improvement in the result from discontinued operations. A preliminary figure of € 3,428 thousand is included for loss on deconsolidation.

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:

• Kober Beteiligungs GmbH and its subsidiaries;
• ABCON Holding GmbH and its subsidiaries;
• WFO Vermögensverwaltung GmbH and its subsidiaries;
• AURIGA Corporate Finance GmbH;
• Aurawida GmbH; and
• Dr. Vielberth Verwaltungsgesellschaft mbH.

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

The transaction volume of goods sold and services provided to related parties under IAS 24 in the first nine months of 2015 was as follows: € 2,002 thousand (gross) in relation to goods/services purchased by Kober Beteiligungs GmbH and its subsidiaries, of which € 156 thousand was outstanding as at the balance sheet date.

No goods or services were purchased from related parties under IAS 24.

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

A list of stockholdings can be found on page 9 of this interim report.

3. Shareholdings in the company as defined in Section 20 IV of the German Stock Corporation Act (Aktiengesetz, AktG)

CANCOM SE did not receive written notice from any stockholder disclosing a majority stockholding as defined in Section 20 of the above Act in the first nine months of 2015.

This is a translation of CANCOM SE's interim report. Only the German version of the report is legally binding. Every effort was made to ensure the accuracy of the translation, however, no warranty is made as to the accuracy of the translation and the company assumes no liability with respect thereto. The company cannot be held responsible for any misunderstandings or misinterpretation arising from this translation.

CANCOM SE

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