Plenum AG

Earnings Release • Apr 24, 2007

News Details

Corporate | 24 April 2007 14:27

plenum AG: Annual Report 2006 Refocusing Strategy successfully completed, plenum is now on course for

plenum AG / Final Results

Announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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plenum AG: Annual Report 2006

Refocusing Strategy successfully completed, plenum is now on course for
growth

• Revenues of EUR 26.5 million above plan
• Gross results almost doubled at EUR 4.5 million (previous year EUR 2.5
  million)
• Management Consulting grows by around 26%
• EPS almost at breakeven with minus EUR 0.02 Euro (previous year minus
  EUR 0.33)

Wiesbaden, 24 April 2007 - plenum AG (Prime Standard, ISIN DE 0006901002)
is a management consulting firm specialized in strategic solutions with a
distinct focus on IT for banks, insurance and utility companies, and
supplemented by the Communications business acquired in 2000.

With revenues of EUR 26.5 million (PY: EUR 27.5 million), plenum AG was
able to exceed the announced revenue target of EUR 25.0 million. As a
result of the systematic refocusing on the high margin Management
Consulting business the gross results from revenue could almost be doubled
at EUR 4.5 million (PY: EUR 2.5 million) and 17% (PY: 9%).

The EBIT also exceeded expectations (minus EUR 1.9 million) at minus EUR
0.9 million EBIT (PY: minus EUR 3.4 million). Due to a positive tax effect
group results even rose to minus EUR 0.1 million (PY: minus EUR 3.2
million). The undiluted result per share was therefore at minus EUR 0.02
(PY: minus EUR 0.33).

In the business year 2006 plenum successfully completed the Refocusing
Strategy developed in 2004 and at the same time prepared the growth course
in the core business Management Consulting.

The challenges for the Refocusing Strategy were:

• Withdrawal from the pure software development business which was
  suffering from intense price pressure
• Separation and profiling of the Communications business
• Focusing of Management Consultancy on the future areas for financial
  services and utility companies

In 2004 plenum still achieved revenues of EUR 18.2 million with software
development, which corresponded to 44% of total business. In 2005 this
revenue was halved according to plan to EUR 9 million and in 2006 further
reduced to EUR 4.4 million. The withdrawal from this business segment was
concluded with the transfer of the Leinfelden location to Novatec GmbH. At
the same time a strategic partnership with Novatec and the creation of a
technology lab ensured that the technology competence of the plenum
consultants was sustained long term.

The Consulting business was focused on strategic core issues and put on
growth course. Whilst the market grew by around 11% in 2006, the segment
Management Consulting at plenum grew by 26% from EUR 9.4 million in 2005 to
EUR 11.8 million in 2006. This growth course was already successfully
supported in 2006 by reinforced recruiting efforts. This meant that
consulting capacity grew by almost 30% in the 1st quarter 2007 against 4th
quarter 2006.

For 2007 we anticipate further growth in the segments Consulting and
Communications of around 20%, which will completely compensate for the lost
revenue from the Software Implementation business of EUR 4.4 million in
2006. Contribution to this growth is expected from our subsidiary plenum
FZ -LLC which is based in Dubai Media City (UAE) and made a strong name for
itself by developing the marketing strategy for the local Roads and
Transport Authority (RTA).

This means that total revenues are expected to reach EUR 26.5 million. We
anticipate a rise of approx. EUR 1.4 million on an EBIT of EUR 0.5 million.
From business year 2008 onwards we anticipate average annual growth of 10%
and a gradual increase in the EBIT margin to 12%.

Andreas Janssen will leave the company on 1 May 2007 at his own request
after an 8 years period of employment out of which he served two as the
chief financial officer in order to devote himself to new challenges.
Hartmut Skubch, CEO, will take over the finance department and hands over
the sales function to his fellow board member Michael Rohde. An extension
of the three-member board to four is not envisaged.

The company's consolidated financial statements for the fiscal year ending
on 31 December 2006 are now available. The Company Report can be downloaded
at www.plenum.de or requested from:

plenum AG
Investor Relations
Hagenauer Str. 53
65203 Wiesbaden
Tel.: +49 (0)611-9882-0
Fax: +49 (0)611-9882-496
Email: aktie@plenum.de
Internet: www.plenum.de

Investor Relations
FINREL GmbH – financial relations -
Stefan Bülling
Barnerstr. 14
22765 Hamburg
Tel.: +49 (0)40-39834-641
Fax: +49 (0)40-39834-649
Email: info@finrel.de
Internet: www.finrel.de

Information and Explanations for this Announcement by the Issuers
This announcement contains future-oriented statements that are based on
current expectations, estimates, predictions, and forecasts as well as on
the assessments and assumptions of the management of plenum AG. Such
statements include statements about plans, strategies, and outlooks. Words
such as “expect”, “most likely”, “preliminary” and similar expressions
identify such future-orientated statements. These statements are not
guarantees of future results and contain risks, uncertainties, and
assumptions that are in part very difficult to foresee. Therefore, the
actual consequences and results could deviate considerably from what has
been stated in the future-orientated statements.

DGAP 24.04.2007

Language: English
Issuer: plenum AG
Hagenauer Straße 53
65203 Wiesbaden Deutschland
Phone: +49 (0)611 9882-361
Fax: +49 (0)611 9882-496
E-mail: aktie@plenum.de
www: www.plenum.de
ISIN: DE0006901002
WKN: 690100
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin-Bremen, München, Hamburg, Düsseldorf

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