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Realtech AG

Interim / Quarterly Report Aug 4, 2011

347_10-q_2011-08-04_64400447-f0ac-469e-92f3-2f950738f4a3.pdf

Interim / Quarterly Report

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QUARTERLY REPORT

2nd QUARTER AND 1st HALF OF 2011 AT A GLANCE

  • Revenue matches last year's fi gures
  • Software revenues: 19% growth
  • Consulting business: 8% decline
  • EBIT reduced to minus EUR 0,9 million
  • Net income rose from EUR 0,2 million to EUR 0,4 million
  • Net cash and cash equivalents and cash fl ow greatly improved
Q2 2011 Q2 2010 Q1+Q2 2011 Q1+Q2 2010
TEUR Δ % TEUR TEUR Δ % TEUR
Revenue and income
Revenue 9.061 (4) 9.422 18.389 (1) 18.491
Revenue consulting 6.108 (7) 6.569 12.311 (8) 13.388
Revenue software 2.953 11 2.653 6.078 19 5.103
Revenue Germany 6.768 5 6.440 13.574 7 12.723
Revenue foreign countries 2.293 (23) 2.982 4.815 (17) 5.768
Earnings before interest, taxes, depreciation and amortization (EBITDA) (621) (163) 981 (445) (130) 1.493
Earnings before interest and taxes (EBIT) (823) (260) 513 (906) (201) 896
Earnings before taxes (EBT) (824) (217) 707 (951) (177) 1.235
Profi t for the year 575 68 342 355 35 264
Earnings per share (in EUR) 0,11 80 0,06 0,07 33 0,05
Investments and depreciation
Investments in intangible and tangible assets 220 (4) 228 485 23 395
Depreciation 202 (57) 468 461 (23) 596
Key fi gures
Gross margin (in %) 40,9 (3) 42,1 41,7 0 41,8
EBITDA margin (in %) (6,9) (166) 10,4 (2,4) (130) 8,1
EBIT margin (in %) (9,1) (267) 5,4 (4,9) (202) 4,8
Cash fl ow from operating activities 3.148 3.736 (87) 5.962 239 1.759
Cash fl ow from investing activities (537) (174) (196) (803) (98) (405)
Cash fl ow from fi nancing activities 37 101 (2.475) 37 102 (2.431)
30.06.11 30.06.10
TEUR Δ % TEUR
Assets, equity and liabilities (end of quarter)
Total assets 43.211 3 42.121
Non-current assets 15.609 11 14.052
Current assets 27.602 (2) 28.069
Net cash and cash equivalents 11.556 86 6.227
Equity 25.633 (4) 26.817
Equity ratio (in %) 59,3 (7) 63,7
Return on equity (in %) 0,0 (98) 1,2
Non-current liabilities 228 (39) 374
Current liabilities 17.350 16 14.930
Employees (end of quarter) 337 3 327

(Chief Executive Offi cer) (Chief Financial Offi cer)

Dr. Rudolf Caspary Thomas Mayerbacher

DEAR SHAREHOLDERS AND BUSINESS PARTNERS,

the key feature of the 2011 fi scal year at REALTECH has been investment. We are investing heavily in consulting and, in particular, the software segment with the aim of developing new products and services for our customers and partners such as SAP. In the software division, the main priority is investment in research and development as well as the organization of extended development and sales partnerships with SAP. The closer partnership with SAP gives us access to new sales markets. However, tapping these markets requires additional effort and funds in 2011.

Business development

At the end of the year under review, the Spanish subsidiary RE-ALTECH system consulting S.L. was sold as part of a management buyout and thus deconsolidated at Group level. Accordingly, in compliance with IFRS 5, REALTECH Spain is shown in the consolidated fi nancial statements as "Discontinued Operations" or "Aufgegebene Geschäftsbereiche". The revenue and cost attributable to the Spanish company and its contribution to income were deducted and are presented below the EBIT line. The same procedure was used for the previous year's fi gures when dealing with the Italian subsidiary REALTECH Italia S. p. A., which was sold at the end of the 2010 fi scal year.

As a result, the fi gures are presented and explained omitting REALTECH Spain in 2011 and without REALTECH Spain and REALTECH Italy for 2010. Deducting the revenue and cost attributable to these companies changes the corresponding values for revenue and income.

The details are as follows:

At EUR 9,061 thousand revenue in the second quarter of 2011 was 4 percent down on the fi gure for the second quarter of 2010 (EUR 9,422 thousand). Looking at the fi rst six months of the year, at EUR 18,389 thousand revenue kept pace with the fi gure for the previous year (EUR 18,491 thousand).

The two segments developed as follows: In Q2 revenues generated by the software business rose 11 percent from EUR 2,653

thousand to EUR 2,953 thousand. Software revenues for the fi rst six months were up as much as 19 percent from EUR 5,103 thousand to EUR 6,078 thousand. The proportion of Group revenue generated by the software business was up from 28 percent to 33 percent.

Revenue in the consulting segment declined 7 percent compared to the same quarter the previous year, from EUR 6,569 thousand to EUR 6,108 thousand. Revenue in the fi rst half of 2011 – at EUR 12,311 thousand – was down 8 percent against the fi rst six months of 2010 (EUR 13,388 thousand).

Revenues generated in Germany were up 7 percent on the previous year, rising from EUR 12,723 thousand to EUR 13,574 thousand. This accounted for 74 percent of consolidated revenue (previous year: 69 percent). Compared to the fi rst six months of 2008, the proportion of group revenue generated by foreign business fell accordingly from 31 percent to 26 percent. Portugal saw a decline of 15 percent, falling from EUR 732 to EUR 623 thousand. This fi gure as a share of total revenue thus fell from 4 percent to 3 percent. The USA generated revenues of EUR 1,486 thousand, which was 6 percent down on the previous year (EUR 1,583 thousand). This region's contribution towards Group revenue fell from 9 percent to 8 percent. However, the Asia-Pacifi c region saw the sharpest falls in revenue. Having stood at EUR 3,453 thousand in the fi rst half of 2010, revenues here saw a 22 percent drop to EUR 2,706 thousand. This region contributed 15 percent of consolidated revenue (previous year: 19 percent). Here the greatest decline was in Japan. As a result of the natural disaster on March 11, 2011 revenues fell by 27

percent from EUR 1,787 thousand to EUR 1,307 thousand. The number of orders received in Japan indicates that the second six months will see a considerable improvement in the fi nancial position of REALTECH in Japan.

Earnings

Revenues in the second quarter of 2011 were slightly down on the previous year, however the cost of sales in Q2/2011 was correspondingly lower. With regard to the fi rst six months, at EUR 10,721 thousand the cost of sales was almost unchanged compared to the previous year (EUR 10,767 thousand). In terms of revenues, this fi gure increased quarter-on-quarter from 58 percent to 59 percent and remained at 58 percent in a six-month comparison.

This development is refl ected in the gross profi t: comparing the respective second quarters, this fi gure decreased from EUR 3,967 thousand to EUR 3,704 thousand, reducing the gross margin from 42 percent to 41 percent. The six-month period saw a slight fall from EUR 7,724 thousand to EUR 7,669 thousand, leaving the gross margin unchanged at 42 percent.

A look at the gross profi t on revenue in both segments over the fi rst half of the year shows that this fi gure fell by 25 percent in the Consulting segment from EUR 3,220 thousand to EUR 2,431 thou sand. Consequently, the gross margin fell from 24 percent to 20 percent. In the Software segment, the gross profi t on revenue increased by 16 percent from EUR 4,504 thousand to EUR 5,238 thousand, although the gross margin fell from 88 percent to 86 percent.

Based on a comparison of quarters, selling and marketing expenses rose by 9 percent to EUR 1,762 thousand (EUR 1,625 thousand). The value of this fi gure as a percentage of revenue grew from 17 percent to 19 percent. As a six-month comparison, this fi gure was up 15 percent from EUR 3,153 thousand to EUR 3,625 thousand. Expenses here increased from 17 percent to 20 percent of revenues.

Compared to the same quarter of the previous year, administrative expenses rose by 16 percent from EUR 1,098 thousand to EUR 1,276 thousand. As a percentage, the rise was from 12 to 14 percent. Compared to the fi rst six months of the previous year, expenses increased by 9 percent from EUR 2,232 thousand to EUR 2,430 thousand. Based on revenue, the fi gure rose from 12 percent to 13 percent.

As a result of investment research and development expenses saw a 48 percent rise from EUR 826 thousand to EUR 1,225 thousand. The value of this fi gure as a percentage of revenue rose to 14 percent, compared to 9 percent in Q2/2010. Comparing the two six-month periods, expenses increased by 29 percent from EUR 1,742 thousand to EUR 2,240 thousand, accounting for 12 percent of revenue (previous year: 9 percent).

The other operating income fell from EUR 362 thousand to EUR 60 thousand compared to the same quarter of the previous year and from EUR 834 thousand to EUR 336 thousand on a sixmonthly basis. The reason for this was the reduced rental income. This effect will be considerably less pronounced in the coming months as new tenants have been found for the property.

EBITDA and EBIT developed accordingly. On a quarter-by-quarter basis EBITDA fell to minus EUR 621 thousand (previous year EUR 981 thousand) and, at minus EUR 823 thousand, EBIT fell accordingly (previous year EUR 513 thousand). Taking a sixmonth period, income from operations fell, with EBITDA down from EUR 1,492 thousand to minus EUR 445 thousand and EBIT declining from EUR 896 thousand to minus EUR 906 thousand.

Net interest in the fi rst six months of 2011 amounted to EUR 79 thousand (previous year: EUR 85 thousand). Foreign currency exchange gain/loss saw a reversal, moving from an exchange rate gain of EUR 254 thousand to an exchange rate loss of EUR 124 thousand. This can particularly be attributed to the weaker US dollar compared to the previous year.

Profi t for the year after tax from discontinued operations for the six-month period of EUR 1,355 thousand (minus EUR 648 thousand) includes the reversal of the loss allowance on the claim arising from the loan to REALTECH Italy for EUR 1,360 thousand.

Profi t for the year in the second quarter of this year rose by 51 percent to EUR 474 thousand (previous year: EUR 315 thousand), taking the earnings per share to EUR 0.09 (previous year: EUR 0.06). In contrast, profi t for the year for the fi rst six months of 2011 fell to EUR 163 thousand (previous year: EUR 244 thousand) and earnings per share lifted to EUR 0.07 (previous year: EUR 0.05).

Financial situation

The cash fl ow from operating activities for the six-month period climbed from EUR 1,759 thousand in the same period of last year to EUR 5,962 thousand. This can essentially be attributed to the cash infl ow from the reduction of EUR 5,412 thousand in trade receivables.

In the fi rst six months, the cash fl ow from investing activities was a cash outfl ow of EUR 802 thousand, compared to a cash outfl ow of EUR 405 thousand in the fi rst six months of the previous year. Investments were made, fi rstly, as part of the increased cooperation with SAP described above and, secondly, for the procurement of other replacements.

The cash fl ow from fi nancing activities in the period under review gave rise to a cash infl ow of EUR 37 thousand resulting from exercising convertible bonds. In the previous year there was

a cash outfl ow of EUR 2,431 thousand. This was the result, fi rstly, of paying a total of EUR 2,668 thousand in dividends (EUR 0.50 per share) in May and, secondly, EUR 237 thousand for exercising convertible bonds.

Assets

Total assets increased by 2 percent to EUR 43,211 thousand on June 30,2011 compared to EUR 42,330 thousand on December 31, 2010.

Trade receivables on the reporting date amounted to EUR 11,300 thousand and were therefore 32 percent lower than the fi gure on December 31, 2010 (EUR 16,712 thousand). The reduction in receivables with revenues remaining at almost the same level can, in particular, be attributed to the sale of the Spanish subsidiary at the end of the quarter under review. As at June 30, 2011 trade receivables accounted for 26 percent of assets (December 31, 2010: 40 percent).

At the key date the REALTECH Group had net cash and cash equivalents of EUR 11,556 thousand, compared to EUR 6,361 thousand on December 31, 2010 and EUR 6,227 thousand on June 30, 2010. These represented 27 percent of assets (December 31, 2010: 15 percent). The increase can primarily be attributed to the sale of REALTECH Spain.

Provisions were reduced in comparison to December 31, 2010 from EUR 4,022 thousand to EUR 2,802 thousand (down

regions

30 percent), primarily due to the utilization of vacation provisions, as well as provisions for outstanding incoming invoices.

Equity, which stood at EUR 25,633 thousand on June 30, 2011, was up slightly on the fi gure on December 31, 2010 (EUR 25,251 thousand). The company's equity ratio amounted to 59.3 percent on June 30, 2011 and 59.7 percent on December 31, 2010.

Employees

At the end of the second quarter of 2011, REALTECH had 337 employees worldwide – 3 percent more than on the same date the year before (327). A total of 244 – or 72 percent – of these employees worked in Germany. Compared to the previous year 231 or 70 percent were employed in Germany. This fi gure is thus 6 percent higher than in the previous year.

Between the two key dates to the end of June the number of employees working at REALTECH companies in other countries fell by 3 percent from 96 to 93. The number of employees in Portugal remained constant at 22, whereas the number of employees in the USA fell from 16 to 11 compared to the previous year. Employee fi gures in the Asia-Pacifi c region rose to 60 (previous year: 58).

Changes to employee numbers in the divisions were as follows on the key date of June 30: in Consulting the number of consultants fell 4 percent from 178 to 170. The number of product consultants rose from 14 to 18. As a result of our investments, the number of developers rose by 23 percent from 39 to 49. At 53,

the number of employees in sales and distribution remained constant. The number of employees in administration was 48, 12 percent up on the previous year's fi gure (43).

Outlook

Although the global economy has recovered from the economic and fi nancial crisis, the leading economic research institutions are expecting general economic growth to register another slight slowdown in the current year. In an international context, many countries are faced with a series of challenges. High government debt, public spending cuts and low export rates, in some cases combined with a poor domestic economy, impact on producers and consumers equally – and ultimately also the IT budgets of our customers. This is a very dynamic business fi eld, requiring correct but also quick decisions. It is important to identify new market opportunities early and to utilize them consistently. Equally, it is also important to avoid making investment mistakes.

REALTECH is currently enhancing its portfolio of services in a targeted manner. Further revenue growth is expected for the 2011 fi scal year which, owing to ongoing investments, will not be immediately refl ected in earnings. However, we anticipate that, as of 2012, the rewards from the investments from 2011 will begin to come in and, as a result of the signifi cantly improved earnings situation, a double-digit EBIT margin will be achieved. All business areas and regions are expected to contribute to achieving this.

In the future too, we are working to align our company consistently with economically successful regions. REALTECH is therefore focusing on international product growth in the USA, Asia-Pacifi c region and European countries in BENELUX and NORDIC, while at the same time strengthening international cooperation within the Group.

The Consulting segment will make a more positive contribution to income in the future by defi ning its portfolio of topics more clearly and applying this to all countries. Here we are concentrating on profi table markets and higher-value, innovative services.

Responsibility statement by the Executive Board

To the best of our knowledge, and in accordance with the applicable reporting principles for interim fi nancial reporting, the interim consolidated fi nancial statements give a true and fair view of the net assets, fi nancial position and earnings of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the fi nancial year.

Yours faithfully, REALTECH AG The Executive Board

Note

REALTECH AG has prepared its (non-audited) quarterly and half-yearly fi nancial statements in accordance with the accounting standards of the International Accounting Standards Board (IASB), i.e. the International Financial Reporting Standards (IFRS) as applicable in the EU. The IAS, IFRS, and corresponding interpretations of the International Financial Reporting Interpretations Committee (IFRIC – formerly SIC) applicable as of June 30, 2011 have been taken into account. The fi gures for the previous year were also determined based on the same standards.

The consolidation and valuation methods used to prepare the quarterly fi nancial statements and establish the comparative fi gures for the previous year were basically the same as those used in the consolidated fi nancial statement as of December 31, 2010. A detailed description of the individual methods is published in the notes of the 2010 annual report.

No matters of particular signifi cance that may affect the company's income or circumstances that have affected business development are known other than those listed here.

HIGHLIGHTS

Shareholder meeting in 2011

On May 24, 2011, REALTECH AG held its twelfth regular General Meeting in the Palatin convention and culture center in Wiesloch. A good 200 shareholders and guests gathered to hear about the future prospects for the company. Daniele Di Croce, Chairman of the Supervisory Board, opened the General Meeting and, after reading the usual formalities, handed over to the Chief Executive Offi cer, Nicola Glowinski:

REALTECH regained momentum in 2010 and took a big step in the desired direction. The company's business goals were achieved and our market position extended in many new fi elds of business. Nicola Glowinski also explained that 2011 will be a year of investments for REALTECH AG. Investments are increasingly being made in consulting and, in particular, the software segment with the aim of developing new products and services for customers and partners such as SAP. In the software division, the main priority is investments in research and development as well as the organization of extended development and sales partnerships with SAP. The closer partnership with SAP opens up new sales markets for REALTECH. However, tapping these markets requires additional efforts and funds.

Glowinski emphasized that REALTECH is currently specifi cally enhancing its clearly defi ned service portfolio. Further revenue growth is expected for 2011 which, owing to ongoing investments, will not be immediately refl ected in earnings. However, the Executive Board anticipates that, as of 2012, the rewards

digit EBIT margin will be achieved. All business areas and regions are expected to make a contribution to this.

At the end of his remarks, Nicola Glowinski offered his heartfelt thanks to the employees, partners and customers for their loyalty, the Supervisory Board for its support and, above all, the shareholders for the trust they have placed in REALTECH AG.

This was followed by a session in which the Executive and Supervisory Boards provided detailed answers to the questions posed by shareholders and their representatives from the German association for private investors (DSW) and the German association for the protection of shareholders' rights (SdK).

Before he moved on to the votes, the Chairman of the Supervisory Board, Daniel Di Croce, announced the proportion of shareholders who were represented at the General Meeting. He confi rmed that EUR 2,758,530 out of the company's share capital of EUR 5,385,652 were represented, which is equivalent to 51.22 percent (previous year: 48.43 percent). All the Board's resolutions were passed, with only a few votes against and a small number of abstentions.

Individual votes were taken on giving discharge to the Executive Board (Item 2) and Supervisory Board (Item 3), the appointment of Deloitte & Touche GmbH, Mannheim as auditor and Group auditors for the 2011 fi scal year (Item 4) and the revision of profi t transfer agreements (Item 5).

REALTECH sells subsidiary in Spain

On 28 June, 2011 REALTECH AG sold its REALTECH Spain subsidiary as part of a management buy out (MBO).

The sale is related to the earnings situation at REALTECH Spain and thereby serves to improve the future profi tability of the RE-ALTECH Group. The sale enables the company to focus more strongly on those subsidiaries that will make a signifi cant contribution to the growth of the Group growth. These are the countries where REALTECH is excellently positioned in the area of consulting due to its own market position and the countries that play a special role within the scope of the product growth strategy. We achieved a sale price of EUR 2.7 million.

The company name of the former REALTECH subsidiary in Spain will remain unchanged. Long-term contracts have been agreed with the management that regulate international presence. As part of the MBO, REALTECH AG has concluded a trademark licensing and cooperation agreement with REALTECH Spain. This agreement regulates future close collaboration and ensures that worldwide contractual obligations towards customers and partners will be implemented and fulfi lled with no restrictions. This includes contracts with companies operating internationally and the fulfi llment of existing and future contracts and agreements between REALTECH customers and partners. REALTECH Spain will continue to operate as a software sales and consulting partner of REALTECH AG.

REALTECH helps consultants fi nd the right route

Under the motto "Steer your success", REALTECH invited interested parties from all over Germany to Hamburg and Heidelberg for a boat trip together. The aim was to enter into dialog with IT consultants and to get them interested in REALTECH, because REALTECH is hiring again, and is seeking experienced employees to enhance the team.

IT consultants from all disciplines were invited to join REAL-TECH in embarking on the right route for a perfect business presence, dealing with members of the opposite sex with style and for the next step in their careers.

During a boat trip together, Dirk Pfi ster, gentleman trainer and co-author of a business etiquette book published by the Haufe publishing house, gave the visitors an entertaining insight into how good manners and appropriate attire can have a positive infl uence on one's own

impact. Afterwards, Johannes Lang, Managing Director of RE-ALTECH Consulting GmbH, provided an insight into current trends on the SAP and IT market and the career opportunities these provide for consultants. There was plenty to talk about in the relaxed atmosphere of the subsequent boat trip.

Both "Sundowner cruises" were well attended and as successful as we had hoped. Although we were not able to conclude an employment contract with every visitor, we were able to establish excellent contacts and strengthen the image of REALTECH as an attractive employer even further.

SHARES

Share performance and market capitalization

The price of REALTECH's shares at the start of the second quarter was EUR 8.99. A short time later, on April 6, 2011, the share price reached its highest value for the quarter under review at EUR 10.50. This was followed by a continuous downward trend, which reached its lowest point on June 13 at a price of EUR 6.78. In the second half of June, the share price recovered slightly, and was listed at EUR 7.00 on June 30, 2011. At the end of the quarter, the company's market capitalization stood at EUR 37 million, corresponding to 87 percent of book equity.

Shareholder structure and volume of trade in REALTECH shares

The shareholder structure of REALTECH AG changed in the second quarter of 2011 compared with the previous quarter in that AvW Gruppe AG, Krumpendorf, Austria reduced the percentage proportion of its voting rights in REALTECH AG to 0 percent in April 2011 (this is equivalent to 0 voting rights).

In contrast, the Baden-Württembergische Versorgungsanstalt für Ärzte, Zahnärzte und Tierärzte, Tübingen, Germany acquired a percentage proportion of voting rights in REALTECH AG of 5.39 percent.

The main shareholders continued to hold the same number of shares. As the number of REALTECH shares increased by 36,500 from Q1 to Q2, the respective holding levels changed slightly. On June 30, 2011, the free fl oat was 50.11 percent.

On average, around 26,587 REALTECH shares were traded every day during the second quarter of 2011 – fi ve times higher than during the same quarter in the previous year (5,349). 85 percent of the shares were traded in Xetra (previous year: 67 percent), while 15 percent were traded on the other stock exchanges (previous year: 33 percent).

Basics
Market segment Prime Standard
Date of issue 26. April 1999
ISIN 700 890
Exchange ID RTC
Issue price 54,00 EUR
Shares and stock options of the issuer and
members of executive bodies as of 30. 06. 2011
Issuer: REALTECH AG - treasury stock
Executive Board: Nicola Glowinski 24.000 shares
70.000 stock options*
Dr. Rudolf Caspary 34.000 shares
23.000 stock options*
Thomas Mayerbacher 1.620 shares
0 stock options
Supervisory Board: Daniele Di Croce 885.500 shares
Rainer Schmidt 765.500 shares
Peter Stier 745.500 shares
*expired as of 31. 07. 2011
Q2 2011 Q2 2010
Key fi gures EUR EUR
Earnings per share 0,11 0,06
Cash fl ow per share 1,11 0,33
Equity per share 4,76 5,03
Highest share price 10,50 8,59
Lowest share price 6,78 6,80
Share price at year end 7,00 6,80
Market capitalization
at end of quarter 38 Mio. 36 Mio.
Number of shares
at end of quarter 5.385.652 5.335.952

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30.06.2011 31.12.2010
ASSETS EUR EUR
Non-current assets
Intangible assets
Concessions, industrial rights and similar rights and assets 502.168 619.585
Goodwill 4.269.754 4.269.654
4.771.922 4.889.239
Tangible assets
Property, plant and equipment 7.209.960 7.233.141
Technical equipment and machines 46.888 34.637
Other equipment and offi ce equipment 857.690 1.258.564
Advance payments and construction in progress 55.122 55.122
8.169.660 8.581.464
Financial assets
Other fi nancial assets 103.270 199.174
Other loans 1.534.772 40.406
1.638.042 239.580
Deferred tax assets 1.029.543 1.237.344
15.609.167 14.947.627
Current assets
Receivables and other assets
Trade receivables 11.299.636 16.711.920
Income tax receivables 3.487.635 3.600.176
Other fi nancial assets 457.608 200.924
Other assets 800.520 508.006
16.045.399 21.021.026
Cash and cash equivalents 11.556.276 6.360.881
27.601.675 27.381.907
Total assets 43.210.842 42.329.534
EQUITY AND LIABILITIES
Equity
Issued capital 5.385.652 5.349.152
Additional paid-in capital 10.962.197 10.962.197
Other comprehensive income 695.594 468.203
Retained earnings 7.884.239 7.528.858
24.927.682 24.308.410
Non-controlling interest 705.627 942.297
25.633.309 25.250.707
Non-current liabilities
Deferred tax liability 227.802 386.788
Current liabilities
Trade payables 1.201.981 1.459.210
Income tax payables 6.334.669 6.469.659
Provisions 2.801.791 4.022.236
Other fi nancial liabilities 116.470 109.087
Other liabilities 6.894.820 4.631.847
17.349.731 16.692.039
Total equity and liabilities 43.210.842 42.329.534

SEGMENT REPORTING

Q1+Q2 2011 Q1+Q2 2010
EUR EUR
Consulting
Revenues 12.311.655 13.387.973
Cost of Revenues 9.880.775 10.168.206
Gross Profi t 2.430.880 3.219.767
Software
Revenues 6.077.806 5.102.991
Cost of Revenues 840.035 598.925
Gross Profi t 5.237.771 4.504.066

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Q1+Q2 2011 Q1+Q2 2010
EUR EUR
Equity as of January 1 25.250.707 28.565.658
Profi t of the year 163.434 243.882
Exchange differences on translation
of foreign operations 182.668 438.522
Total comprehensive income 346.102 682.404
Divident payment 0 (2.667.976)
Execution of stock options and
convertible bonds 36.500 236.820
Equity as of June 30 25.633.309 26.816.906

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Q2 2011 Q2 2010 Q1+Q2 2011 Q1+Q2 2010
Continuing oprerations EUR EUR EUR EUR
Revenue 9.060.982 9.422.067 18.389.461 18.490.964
Cost of sales 5.357.487 5.454.664 10.720.810 10.767.131
Gross profi t 3.703.495 3.967.403 7.668.651 7.723.833
Selling and marketing expenses 1.762.162 1.624.748 3.625.248 3.152.502
Administrative expenses 1.276.222 1.098.089 2.430.347 2.231.718
Research and development expenses 1.225.005 826.343 2.240.270 1.741.506
Other operating expenses 322.147 266.030 614.707 535.165
Other operating income 59.537 361.740 335.448 833.541
Operating profi t (822.505) 513.933 (906.474) 896.483
Net interest 38.175 42.904 79.389 84.945
Foreign currency exchange gains/(loss) (39.909) 150.381 (124.191) 253.584
Profi t for the year before tax from continuing operations (824.239) 707.218 (951.276) 1.235.012
Income tax expenses 134.945 187.590 239.871 343.152
Profi t for the year from continuing operations (959.184) 519.628 (1.191.147) 891.860
Discontinued operations
Profi t for the year after tax from discontinued operations 1.432.906 (205.010) 1.354.581 (647.978)
Profi t for the year 473.722 314.619 163.434 243.882
Attributable to
- Equity holders of the parent 574.640 342.029 355.381 263.920
- Non-controlling interests (100.918) (27.410) (191.947) (20.038)
Other comprehensive income for the year, net of tax 244.667 290.085 182.668 438.522
Exchange differences on translation of foreign operations 244.667 290.085 182.668 438.522
Attributable to
- Equity holders of the parent 255.553 202.039 227.391 298.542
- Non-controlling interests (10.886) 88.046 (44.723) 139.980
Total comprehensive income for the year, net of tax 718.389 604.704 346.102 682.404
Attributable to
- Equity holders of the parent 830.194 503.159 582.772 562.464
- Non-controlling interests (111.805) 101.545 (236.670) 119.940
Accumulated profi t carried forward 7.528.858 8.908.687
Dividend payment 0 2.667.976
Retained earnings 7.884.239 6.504.631
Average number of shares outstanding – basic 5.367.402 5.315.952 5.367.402 5.315.952
Average number of shares outstanding – diluted 5.495.402 5.538.902 5.495.402 5.538.902
Earnings per share – basic 0,11 0,06 0,07 0,05
Earnings per share – diluted 0,10 0,06 0,06 0,05

CONSOLIDATED STATEMENT OF CASH FLOWS

Q1+Q2 2011 Q1+Q2 2010
EUR EUR
Profi t for the year 163.434 243.883
Income tax expense 239.871 250.253
Net interest (79.326) (9.072)
Depreciation of fi xed assets 461.271 596.065
Change in asset disposals 553.086 89.391
Change in income tax payable (134.990) (150.843)
Income tax paid (205.172) (98.840)
Change in provisions (1.220.445) (1.033.474)
Change in trade receivables 5.412.284 (1.705.121)
Change in other assets (1.552.105) (553.705)
Change in trade accounts payable and in other current liabilities 2.013.127 3.708.949
Proceeds from interests 81.227 17.593
Payment for interests (1.901) (8.521)
Non-cash change 231.483 412.872
Cash fl ow from operating activities 5.961.844 1.759.430
Purchase of intangible assets (80.424) (90.038)
Purchase of tangible assets (404.812) (304.698)
Investment in fi nancial assets (317.713) (10.369)
Cash fl ow from investing activities (802.949) (405.105)
Change in dividends 0 (2.667.976)
Change in convertible bonds 36.500 236.820
Cash fl ow from fi nancing activities 36.500 (2.431.156)
Change in cash and cash equivalents 5.195.395 (1.076.831)
Cash and cash equivalents at beginnig of the period 6.360.881 7.303.952
Cash and cash equivalents at end of the period 11.556.276 6.227.121

FINANCIAL CALENDAR

2011 | 2012 November 03, 2011 Quarterly Report 3 | 2011

  • November 22, 2011 Deutsches Eigenkapitalforum, Frankfurt
  • March 29, 2012 Annual Report 2011
  • May 03, 2012 Quarterly Report 1 | 2012
  • May 22, 2012 Annual General Meeting, Palatin, Wiesloch, 10.00 a.m.
  • August 02, 2012 Quarterly Report 2 | 2012
  • November 06, 2012 Quarterly Report 3 | 2012

REALTECH AG

Industriestraße 39c D-69190 Walldorf

Tel.: +49.6227.837.500 Fax.: +49.6227.837.292 [email protected] www.realtech.com

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