Keyware Technologies NV — Earnings Release 2016

Mar 9, 2017

9 March 2017, 22:00 CET

Keyware Group records a revenue growth of 11% in 2016

Brussels, Belgium – 9 March 2017 – Keyware (EURONEXT Brussels: KEYW), a major supplier of electronic payment solutions and associated transaction management, today announced the financial results for the financial year ending 31 December 2016.

Commercial

Keyware laid down a firm base in 2016 from which to roll out new payment technology over the coming years. Together with the increasing number of electronic transactions per payment terminal, the growing number of customers has been the main driver behind the growth of the financial year ending on 31 December 2016.

The past months Keyware made a strategic investment and performed two takeovers: the launch of Keyware Transactions & Processing in Germany, a 40% participation in the French company Magellan and the takeover of the Belgian company EasyOrder. With this, Keyware shows that it is increasing its geographical market share and that it is a key player in the future of electronic payment.

Keyware Transactions & Processing GmbH launches the payment solution of Keyware on the German market. As far as electronic payment is concerned, Germany is still a considerable way behind in relation to Belgium, the Netherlands and the Scandinavian countries. As it is the main economy in the region, it offers a significant potential for growth in the long term.

EasyOrder offers merchants, government bodies and liberal professions an m-commerce and ecommerce shop with internet interface, allowing their customers to quickly and easily order products and services and pay by App (for Apple, Microsoft and Android) for smartphones and tablets.

In this manner Keyware provides local players in the digital economy with a profitable answer to the known mega-webshops.

Participating in the FinTech company Magellan allows Keyware an access to the rapidly growing market of split consumer payments on the one hand and technologically advanced payment platforms for e.g. smartphone payments on the other hand. Split payments, where the merchant authorizes the consumer to pay in instalments by means of the consumer's payment card only, are already a great success in Scandinavia. For the merchant, this is an important administrative simplification (no need any credit file) whilst the customer benefits from simple processing at the till.

"These takeovers suit Keyware's omnichannel strategy perfectly. Keyware offers payment services on all channels, both with and without a physical bank card, online through the smartphone or at the counter or till, and consequently becomes a major player in the sizeable network of technology and service companies in the market for electronic payments." Stéphane Vandervelde, President & CEO Keyware

At the end of 2016, Keyware recorded a net growth of 1,200 contracts since the previous year. The number of transactions per terminal also grew, which turned out to be the main driver behind Keyware's revenue growth.

"Cash as means of payment is under increasing pressure from the electronic payments. Even small amounts are paid by card more and more frequently because merchants realize that as a result of lower transaction costs electronic payments are safer, cheaper and quicker. Because of our friendly rates, we also notice a clear increase in our customer base. Stéphane Vandervelde.

Financial

The Keyware 2016 Financial Year summarized
--------------------------------------------	--

• Revenues amount to kEUR 18,721, an increase by kEUR 1,918
• EBITDA grows by kEUR 231 from kEUR 4,993 to kEUR 5,224
• Profit before tax amounts to kEUR 4,192 and increases by kEUR 164
• Net profit after taxes amounts to kEUR 3,101 and decreases by kEUR 2,190 due to deferred taxes (non-cash)
• A participation of 40% has been acquired in Magellan SAS which led to a proportional contribution to the net result of the Group of kEUR 105 (Q4-2016)
• Profit before taxes of the 2016 financial year amounts to kEUR 4,192 compared to kEUR 4,028, which represents an increase of kEUR 164.
• In 2016, the EBITDA amounts to kEUR 5,224 compared to kEUR 4,993 which means an increase of kEUR 231 in relation to the financial year 2015. Other expenses, however, include a number of exceptional costs of a non-recurring or occasional nature amounting to kEUR 350 (see infra). The normalised EBITDA of 2016 is therefore kEUR 350 higher than the reported EBITDA and amounts to kEUR 5,574. The normalised profit before taxes is also kEUR 350 higher.
• Keyware closes the financial year 2016 with a net profit of kEUR 3,101 compared to kEUR 5,291 in 2015. This decrease is triggered by the deferred taxes entry (non-cash). In 2015, deferred tax revenues were recorded amounting to 1,373 kEUR in relation to remaining tax losses. In 2016, deferred tax assets were used for kEUR 1,038, which gave rise to the same amount as a charge (non-cash). Due to the different impact of 2016 compared to 2015, these deferred taxes account for an impact of kEUR 2,411. The profit before taxes is therefore a better indicator in this case. Eliminating the non-recurring costs mentioned above, the normalised net profit after taxes is kEUR 231 higher.
• On 30 September 2016, a participation of 40% was acquired for kEUR 4,000 in Magellan SAS, a France based company. The contribution of this participation to the net result of 2016 amounts to kEUR 105 (proportional and only Q4 2016). The financing of this participation was a mixture of own equity (kEUR 1,000) and a loan from a credit institution (kEUR 3,000). The financing through own equity was realised by means of a buy-back programme of treasury shares for kEUR 1,000.

The figures

	Financial year ended on
Main indicators for the	31.12.2016	31.12.2015
Financial year ended on 31 December	kEUR	kEUR
	(audited)	(audited)
Revenues	18,721	16,803
Gross profit	10,887	10,178
Profit before taxes	4,192	4,028
Net profit	3,101	5,291
EBITDA	5,224	4,993
Profit before taxes margin (profit before taxes/
revenues) (%)	22.4	24.0
Net profit margin (net profit/revenues) (%)	16.6	31.5
EBITDA margin (EBITDA/revenues) (%)	27.9	29.7

Management report of the results for 2016

• The revenues and the gross profit can be presented as follows:

	Fianncial year ended on
Gross profit	31.12.2016	31.12.2015	Movement
	kEUR	kEUR
	(audited)	(audited)
Revenues	18,721	16,803	11.4 %
Raw materials and consumables	(7,834)	(6,625)	18.2 %
Gross profit	10,887	10,178	7.0 %
Gross profit margin	58.2%	60.6%

• The consolidated revenues for the 2016 financial year amounts to kEUR 18,721 in relation to kEUR 16,803 for 2015, or an increase by 11.4%

The authorisations segment explains the increase of the revenues. The revenue growth of kEUR 1,918 can be fully contributed to the higher income from the authorisations. Beside a higher number of contracts generating commissions and a higher volume of transactions, better conditions from the acquirers in 2016 have also contributed to this.

The decrease in revenues from the payment terminals segment is triggered by the lower number of signed contracts in 2016 compared to 2015. In comparison to the previous financial year 2015, the GlobalPay asset deal contribution does need to be mentioned as part of the revenue of the payment terminals. This amounted to kEUR 850 in 2015.

• The gross profit for financial year 2016 amounts to kEUR 10,887 compared to kEUR 10,178 for 2015, or an increase of kEUR 709 or 7.0% The increase in the gross profit of kEUR 709 is realised by the increase of the authorisations of kEUR 786 (+84.5%), whilst the payment terminals present a decrease in gross profit of kEUR 77 (-0.8%)

• The other operating expenses increase by kEUR 868 from kEUR 3,712 to kEUR 4,580, largely because of the costs involved with the launch of the operations in Germany (kEUR 80) and because of a number of costs with a non-recurring or one-off nature (settlement to finalise a dispute, due diligence costs and costs associated with 20-year Keyware for a total of kEUR 350). These have negatively impacted operating income (EBIT), EBITDA and profit before taxes for an amount of kEUR 350 and net profit for kEUR 216 respectively

• The allowances on current assets increase by kEUR 112 from kEUR 1,785 to kEUR 1,897. This mainly relates to allowances on receivables from finance leases (kEUR 1,565) as well as allowances on inventories (kEUR 332). The increase of kEUR 112 is largely due to the higher allowances on finance lease receivables
• The operating profit (EBIT) amounts to kEUR 3,174 compared to kEUR 3,236, which is a decrease of kEUR 62 compared to 2015. This decrease is mainly due to the fact that the increase of the gross margin of kEUR 709 is offset by a higher increase in other expenses (kEUR 868) and by higher allowances on current assets (kEUR 112)
• The financial results amount to kEUR 1,018 compared to kEUR 792 in 2015. This improvement of kEUR 226 is mainly attributable to the lower financial costs (kEUR 160) associated with refinancing the shareholder loans by bank loans and by refinancing some loans. The increase in the installed base of payment terminals accounts for the increase in financial income by kEUR 66 as this caption comprises the discounts on the contracts recognised and taken into result over the duration of the contracts
• The profit before taxes amounts to kEUR 4,192 compared to kEUR 4,028 in 2015. This improvement of kEUR 164 (+4.1%) comes from a better financial result of kEUR 226 compensating for the lower operating income (EBIT) of kEUR 62
• The net profit for the financial year 2016 amounts to kEUR 3,101 compared to a net profit of kEUR 5,291 in 2015, in other words a decrease of kEUR 2,190 (41.4%) This decrease can be contributed to deferred taxes. In 2015, deferred tax revenues amounting to 1,373 kEUR were recorded in relation to tax losses, triggering a net profit that is higher than the profit before taxes. In 2016, deferred tax assets were utilised in the amount of kEUR 1,038, which is reflected as a charge in the result of 2016, resulting in a lower net profit than the profit before taxes. Hence, deferred taxes account for a portion of kEUR 2,411 in the decrease of kEUR 2,190
• The net profit for the financial year 2016 includes the share in Magellan SAS for kEUR 105. This is the 40% stake in the result of the fourth quarter of 2016, which is the time span during which Keyware owns this participation.
• The EBITDA amounts to kEUR 5,224, which therefore represents an increase of kEUR 231 compared to 2015. Given the decrease in the operating profit (EBIT) of kEUR 62, the increase of EBITDA in 2016 is attributed to the higher non-cash costs (mainly higher allowances on receivables)

Modified presentation of revenues and cost of sales in 2016

In the previous press releases with respect to the intermediate quarterly results of 2016, this change was already explained. Up until financial year 2015, the commissions obtained from authorisation agreements were recorded as net sales within revenues. As from financial year 2016 onwards, these revenues are no longer presented in such a way, but are rather broken down into gross revenues and related costs.

On 29 April 2015, the European Union enacted the so-called Interchange Fee Regulation (published in the Official Journal of the European Union on 19 May 2015). Different regulations will come into force on different dates. The regulations on the interchange fee, for example, came into effect on 9 December 2015, whereas the majority of the other regulations only became effective quite recently, on 9 June 2016.

The IFR's primary objective is to limit interchange fees and to improve cost transparency for the use of payment cards. Thanks to this better transparency of the various components, an exhaustive view on costs has been obtained.

Keyware has opted to record on the one hand the global revenues (being the Merchant Service Charge or 'MSC' charged to the merchant) and on the other hand all related costs in separate respective captions of revenues and raw materials and consumables (being the cost of sales). The isolated presentation of the related costs as a result of which revenues are presented in gross amounts is referred to as 'upgrossing'.

Gross profit	2016	Upgrossing	2016	2015		2015
	kEUR	kEUR	kEUR	kEUR	kEUR	kEUR
	(audited)	(audited)	(audited)	(audited)	(audited)	(audited)
Revenues	12,831	5,890	18,721	12,491	4,312	16,803
Raw materials and				(2,313)	(4,312)	(6,625)
consumables	(1,944)	(5,890)	(7,834)
Gross profit	10,887	-	10,887	10,178	-	10,178
Gross profit margin	84.8%		58.2%	81.5%		60.6%

The revised presentation only impacts the components of the gross profit:

Hence, the gross margin as an absolute amount does not change, only its components and the gross profit margin do.

According to the previous presentation, the gross profit margin amounts to 81.5% in 2015 and 84.8% in 2016 respectively. The increase in gross margins in 2016 by 3.3% percentage points is due primarily to the increased share of authorisations in the revenues and to a cheaper product mix of purchased payment terminals as well.

In the current presentation, gross profit margin drops from 60.6% in 2015 to 58.2% in 2016. This is the result of the increasing importance of authorisation revenues which generate a lower gross profit margin than payment terminals.

Comparative presentation of the Profit and Loss account

Consolidated profit and loss account for the financial year ended on	31.12.2016	31.12.2015	31.12.2015
	kEUR	kEUR	kEUR
	(audited)	(audited) (1)	(audited) (2)
Continued operations
Revenues	18,721	16,803	12,491
Other operating income	470	314	314
Raw materials and consumables	(7,834)	(6,625)	(2,313)
Salaries and employee benefits	(1,438)	(1,508)	(1,508)
Depreciations and amortizations	(268)	(251)	(251)
Net allowances on current assets	(1,897)	(1,785)	(1,785)
Other operating expenses	(4,580)	(3,712)	(3,712)
Operating profit	3,174	3,236	3,236
Financial income	1,207	1,141	1,141
Financial expenses	(189)	(349)	(349)
Profit before taxes	4,192	4,028	4,028
Taxes on the result	(1,196)	1,263	1,263
Profit from investments in associates / joint-ventures	105	-	-
Profit of the financial year for continued operations	3,101	5,291	5,291
Profit of the financial year for discontinued
operations	-	-	-
Profit of the financial year	3,101	5,291	5,291

(1) profit and loss account of 2015 according to the new presentation

(2) profit and loss account of 2015 according to the previous presentation

• this modified presentation of the authorisation revenue therefore only impacts the individual components of the gross margin, i.e. the revenues and the cost of sales (raw materials and consumables);
• the other captions of the profit and loss account of 2015 remain unchanged;
• no impact on the (opening) equity as of 1 January 2016;
• also, no modifications had to be made neither to the balance sheet nor to the cash flow statement relating to 2015

Management report on the balance sheet as at 31 December 2016

	Financial year ended on
Main indicators for the financial year	31.12.2016	31.12.2015
Ended on 31 December	kEUR	kEUR
	(audited)	(audited)
Net equity	26,436	23,683
Long term (LT) and short term (ST) borrowings and debts	6,292	4,189
Net equity/ total liabilities (%)	73.0	76.4
LT and ST borrowings and debts / net equity (%)	23.8	17.7

The main indicators for the financial year can be summed up as follows:

• The net equity has increased by kEUR 2,753 in comparison to 31 December 2015. The consolidated statement of changes in net equity provides a detailed summary of all underlying factors. Besides the net profit of kEUR 3,101 it mainly relates to the capital increase of kEUR 95 by the exercise of warrants and the distribution of dividends of kEUR 424. At the end of 2016 the company still holds treasury shares representing a value of kEUR 19;
• The payment of dividends to the amount of kEUR 424 took place for the first time in 2016. A dividend of EUR 0.02 per share was paid in August 2016 as interim dividend;
• Due to the above the net equity represents a share of 73.0% of total liabilities compared to 76.4% as at 31 December 2015;
• The financial debts on aggregate present an increase of kEUR 2,103 compared to the end of 2015. Apart from refinancing of shareholders loans, two new loans have been contracted in 2016, one to the amount of kEUR 500 (State Bank of India, in relation to the financing of the purchase of payment terminals) and the other to the amount of kEUR 3,000 (Belfius Bank, in relation to the Magellan acquisition). In the same time this also means that an amount of kEUR 1,397 was reimbursed in 2016 with respect to borrowings;
• These new loans explain the increase of the financial debts in the balance sheet structure. At the end of 2016, these loans account for 23.8 % of net equity compared to 17.7 % as at 31 December 2015;
• The assets as at 31 December 2016 comprise the 40% participation in Magellan SAS. This was acquired for kEUR 4,000 and it takes into account the share in the result (kEUR 105) since its access to the capital at 30 September 2016

2016 Important Events

40% PARTICIPATION IN MAGELLAN

On 30 September 2016 a participation of 40% was acquired in Magellan SAS, a company under French law, for a consideration of kEUR 4,000. This amount was paid partially from own funds (kEUR 1,000) and partially by raising debt (kEUR 3,000).

Magellan offers innovative solutions for the maintenance of electronic transactions. As a result, Keyware gains access to electronic solutions for physical environments, e-commerce and mcommerce through the existing software solutions: SET2U (payment platform), S-TOKEN (payment data anonymization) and SPLIT (a form of micro credit offered by merchants consisting in a payment by instalments).

As regards to the financing by own funds, this was realized by the share buy-back program (kEUR 1,000) which started in August 2016 and which was accomplished in December 2016.

As regards to the financing by bank loans, there is a one year stand still period so that the first payment will be made in October 2017 only. The borrowed amount of kEUR 3,000 will be served in 48 monthly instalments whereby the last payment will take place in September 2021.

PAYMENT OF DIVIDENDS

For the first time in its existence, the Keyware Technologies started to pay dividends. An amount of EUR 0.02 per share was paid which represents a total expense of kEUR 424.

START OF ACTIVITIES IN GERMANY

In June 2016, Keyware Transactions & Processing GmbH was incorporated as a 100 % subsidiary. Its activities are similar to those of Keyware Smart Card Division NV: rental and sale of payment terminals. Its revenue stream will likewise be generated from rental or sale revenues and authorisation revenues.

The activities only started in the fourth quarter of 2016. During this start-up phase losses were suffered to the amount of kEUR 102.

COURT CASE PROSECUTION AGAINST KEYWARE SMART CARD DIVISION

The Prosecution has filed a court case against Keyware Smart Card Division NV. On 15 December 2016, The Court of First Instance in Brussels condemned Keyware Smart Card Division NV to the payment of about kEUR 750 (including kEUR 22 as payment to civil claimants). Keyware lodged an appeal on 13 January 2017 so that the verdict is suspended and not enforceable. The full debate will have to be repeated before the Court of Appeal. The Prosecution also lodged an appeal.

The litigation relates to the period 2008 - 2014, during which eventually merely about 100 claimants filed a complaint. This is a very limited number of cases in comparison to the number of contracts signed between 01/01/2008 and 31/12/2014.

We utmost regret these cases and wish to emphasize that an overwhelming number of clients are very satisfied. During that time span 39,121 contracts have been signed so that these approximately 100 claimants represent 0.3% thereof.

By lodging a higher appeal, Keyware wishes to refute the accusations of forgery, deception and fraud and/or to put statements into their true context. Keyware is of the opinion that the verdict taken on 15 December 2016 is a contingent liability for which at this stage no provision needs to be recorded in the books. Hence, the consolidated numbers of 2016 do not include any provision.

Post balance sheet events

In January 2017 Keyware took over the shares of VOF EasyOrder. This takeover, together with the combined expertise of both companies, a web shop app offering merchants the possibility to personalize their own web shop for smartphone, tablet or pc becomes available. Such an app offers an instantaneous answer to the fierce struggle that small merchants face against the more corporate players such as Zalando, bol.com, ... .

The costs of this takeover amount to kEUR 700. A fixed consideration of kEUR 500 is to be paid before 30 June 2017 (kEUR 425 paid from own funds in January 2017 and kEUR 75 to be paid in Keyware Technologies shares before 30 June 2017) and the balance of kEUR 200 will be paid between 2017, 2018 and possibly 2019 on the basis of the achieved performance indicators. This balance of kEUR 200 will be paid in cash for the amount of kEUR 150 and in Keyware Technologies shares for the amount of kEUR 50.

To date, there are no other specific post balance sheet events to be reported.

Auditor's opinion

"The auditor of Keyware Technologies NV, BDO Bedrijfsrevisoren Burg. Ven. , has confirmed that its audit procedures, which have been substantially completed, have not revealed any significant corrections that should have been made to the abbreviated consolidated income statement, balance sheet, cash flow statement and statement of changes in the equity of the Group relating to 2016, included in this press release."

List of abbreviations

EBIT	Earnings Before Interest and Taxes It is seen as the operating result, i.e. operating profit or loss
EBITDA	Earnings Before Interest, Taxes, Depreciations and Amortizations It is defined as the operating result (EBIT) + depreciations and amortizations + allowances on inventories + allowances on receivables + impairments
	Realized losses on receivables are included in EBIT and are not added back to EBITDA
IF	Interchange Fee
IFR	Interchange Fee Regulation
kEUR	thousands of euros
MSC	Merchant Service Charge

About Keyware

Keyware (EURONEXT Brussels: KEYW) is a leading supplier of electronic payment solutions, loyalty systems, identity applications and related transaction management. Keyware is based in Zaventem, Belgium. More information is available on www.keyware.com.

Please direct inquiries to:

Mr. Stéphane Vandervelde President & CEO Keyware Technologies Tel: +32 (0)2 346.25.23 ir@keyware.com www.keyware.com

CONSOLIDATED PROFIT AND LOSS ACCOUNT

Consolidated profit and loss accounts can be summarized as follows:

	Financial year
Consolidated profit and loss account for the financial year ending on	31.12.2016	31.12.2015
	kEUR	kEUR
	(audited)	(audited)
Continued operations
Revenues	18,721	16,803
Other operating income	470	314
Raw materials and consumables	(7,834)	(6,625)
Salaries and employee benefits	(1,438)	(1,508)
Depreciations and amortizations	(268)	(251)
Net impairment losses on current assets	(1,897)	(1,785)
Other operating expenses	(4,580)	(3,712)
Operating profit	3,174	3,236
Financial income	1,207	1,141
Financial expenses	(189)	(349)
Profit before taxes of the financial year	4,192	4,028
Taxes on the result	(1,196)	1,263
Results from participations in joint-ventures	105	-
Profit of the financial year from continued operations	3,101	5,291
Profit of the financial year from discontinued operations	-	-
Profit of the financial year	3,101	5,291
Weighted average number of issued ordinary shares	21,097,637	20,454,204
Weighted average number of shares for the diluted earnings per share	23,539,322	23,659,183
Profit per share from continued and discontinued operations
Profit per share	0.1500	0.2587
Profit per diluted share	0.1317	0.2236

CONSOLIDATED BALANCE SHEET

	Financial year ended on
Consolidated balance sheet ended on	31.12.2016	31.12.2015
	kEUR	kEUR
	(audited)	(audited)
Assets
Goodwill	5,248	5,248
Other intangible fixed assets	150	200
Tangible fixed assets	491	428
Deferred tax assets	2,020	3,058
Receivables from finance leases	14,485	15,346
Participations in associates / joint-ventures	4,105	-
Other participations	400	250
Other assets	80	75
Non-current assets	26,979	24,605
Inventories	1,201	992
Trade and other receivables	976	626
Receivables from finance leases	5,961	3,806
Deferred revenues	36	8
Cash and cash equivalents	1,045	981
Current assets	9,219	6,413
Total assets	36,198	31,018
Equity and liabilities
Issued capital	7,194	8,771
Share premiums	2,868	4,846
Other reserves	797	797
Treasury shares	(19)	-
Results carried forward	15,596	9,269
Equity attributable to owners of the parent company	26,436	23,683
Provisions	-	-
Borrowings	4,547	2,675
Lease liabilities	38	43
Non-current liabilities	4,585	2,718
Trade and others debts	2,919	2,574
Borrowings	1,745	1,514
Lease liabilities	45	26
Miscellaneous debts	-	11
Accrued charges and deferred revenues	468	492
Current liabilities	5,177	4,617
Total liabilities	9,762	7,335
Total equity and liabilities	36,198	31,018

CONSOLIDATED CASH FLOW STATEMENT

Consolidated cash flow statement	Financial year ended on
For the financial year ended on	31.12.2016	31.12.2015
	kEUR	kEUR
	(audited)	(audited)
Cash flows from operating activities
Profit of the financial year	3,101	5,291
Financial income	(1,207)	(1,141)
Financial expenses	189	349
Depreciations, amortizations and impairment on non-current
assets	268	251
Allowances on finance lease receivables	1,565	1,224
Allowances on inventories	332	561
Deferred taxes	1,038	(1,373)
Operating cash flow before changes in working capital
components	5,286	5,162
Decrease/(increase) of inventories	(541)	(817)
Decrease/(increase) of finance lease receivables	(2,859)	(3,308)
Decrease/(increase) of trade and other receivables	(350)	217
Decrease/(increase) of deferred charges	(28)	11
Increase/(decrease) of trade debts	178	(1,259)
Increase/(decrease) of other debts	132	114
Changes in working capital components	(3,468)	(5,042)
Interest paid	(172)	(337)
Interest received	1,190	1,129
Cash flows from operating activities	2,836	912
Cash flows from investing activities
Acquisition of intangible and tangible fixed assets	(311)	(380)
Disposal of intangible and tangible fixed assets	30	-
Acquisition of participations	(150)	(250)
Investments in associates / joint-ventures	(4,000)	-
Result from investments in associates / joint-ventures	(105)	-
(Increase)/Decrease of guarantees	(5)	(1)
Cash flows from investing activities	(4,541)	(631)
Cash flows from financing activities
Capital increase (included share premiums)	95	411
(reimbursements)/proceeds from LT and ST borrowings	2,103	(596)
(reimbursements)/proceeds from LT and ST lease liabilities	14	(30)
Treasury shares	(19)	-
Paid dividends	(424)	-
Cash flows from financing activities	1,769	(215)
Net (decrease)/increase in cash and cash equivalents	64	66
Cash and cash equivalents at the beginning of the financial year	981	915
Cash and cash equivalents at the end of the financial year	1,045	981

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Consolidated statement of changes in equity for the financial year 2016	Number of shares	Capital	Share premiums	Other reserves	Treasury shares	Result carried forward	Attributable to owners of the parent company	Non controlling interests	Total
Audited		kEUR	kEUR	kEUR	kEUR	kEUR	kEUR	kEUR	kEUR
Balance as at 01.01.2016	21,063,793	8,771	4.846	797	-	9,269	23,683	-	23,683
Profit of the financial year	-	-	-	-	-	3,101	3,101		3,101
Total realised and comprehensive income for
the financial year	-	-	-	-	-	3,101	3,101		3,101
Capital increase	160,000	59	36	-	-	-	95	-	95
Capital decrease	-	(1,636)	(2,014)			3,650	-	-	-
Distribution of dividends	-	-	-	-	-	(424)	(424)	-	(424)
Treasury shares	-	-	-	-	(19)	-	(19)		(19)
Balance as at 31.12.2016	21,223,793	7,194	2,868	797	(19)	15,596	26,436	-	26,436

REGULATED INFORMATION INSIDE INFORMATION

Consolidated statement of changes in equity for the financial year 2015	Number of shares	Capital	Share premiums	Other reserves	Result carried forward	Attributable to owners of the parent company	Non controlling interests	Total
Audited		kEUR	kEUR	kEUR	kEUR	kEUR	kEUR	kEUR
Balance as at 01.01.2015	20,438,793	8,490	4,716	797	3,978	17,981	-	17,981
Profit of the financial year Total realised and	-	-	-	-	5,291	5,291		5,291
comprehensive income for the financial year	-	-	-	-	5,291	5,291		5,291
Capital increase	625,000	281	130	-	-	411	-	411
Balance as at 31.12.2015	21,063,793	8,771	4,846	797	9,269	23,683	-	23,683