Q3 · 2017-11-30 · 6 Quarterly report Q3.2013 We are intensively addressing the issue of...

Q3 .13

ATOSS Quarterly Report Q3.2013

atoSS customer Luzerner Kantonalbank

© Foto: Melk Imboden, 6374 Buochs

3

ATOSS Quarterly Report Q3.2013

© Foto: Melk Imboden, 6374 Buochs

4 Q u a r t e r ly r e p o r t Q 3 .2013

andreas F.J. obereder and Christof leiber Board of Management, atoSS Software aG

Letter to Shareholders

5l e t t e r t o S h a r e h o l d e r S

We are very satisfied with the course of business in the first nine months of 2013. the third quarter saw us record the highest individual quarterly sales in our history, and development over the past nine months shows that atoSS Software aG remains on course for further record performance.

this success is essentially due to the huge importance of systems extending to all aspects of efficient workforce management and staff deployment as an instrument of strategic control and development at modern business undertakings. those responsible at a corporate level are faced with great challenges. they must put in place new conditions to support the modern, flexible world of work, while at the same time fighting to maintain their competitive edge and value added. the only organizations to survive in this environment will be those that respond flexibly, proactively, adaptably and with initiative in times of change. this is a complex task, and one that is inconceivable without innovative It solutions to optimize staff deployments.

players who fail to address and adapt to the modern, flexible world of work will cease to be perceived as modern employers and lose their attraction. on the one hand, it is a question of our desire for greater autonomy, which as studies in recent years have proved, is not only of personal relevance: It is also of significant economic importance for business undertakings, leading as it does to greater motivation and productivity. For the workers of Generation y, this urge is both natural and indispensable to the way they perceive the world of work. If companies cannot offer this group of employees what they seek, the battle for well trained, skilled workers and managers is already as good as lost. In Germany, just under 60 percent of companies offer their employees a degree of flexibility in their working conditions. Worldwide the proportion is 81 percent: It is clear beyond doubt that we have ground to make up.

another important aspect for companies lies in the increasingly demanding management and control of the workforce. the boundaries to the mobile, flexible working world have long since been crossed. the technological advances that permit ever faster data transfer and ever more powerful devices are not to be stopped. Industry association BItKoM expects, for example, that sales of tablet computers will increase by 48 percent to eur 2.8 billion, putting them on a par for the first time with sales of desktop pCs. on the other hand, this increase in mobility in the working world must also be managed. the key lies in It-based solutions.

Dear Shareholders, Ladies and Gentlemen,

6 Q u a r t e r ly r e p o r t Q 3 . 2 013

We are intensively addressing the issue of “mobile working”, which in our view holds enormous potential. We offer our customers solutions and products to support holistic workforce management which bring long-term benefits for both businesses and employees. our success is confirmation of our projections and assessments. We remain on course for further growth, for 2013 we expect an eBIt margin of securely over 20 percent.

yours sincerely,

andreas F.J. obereder Christof leiber(Chairman of the Management Board/Ceo) (Member of the Management Board)

7

atoSS customer SWISS Airlines


Facts Overview

ECONOMIC BACKGROUND:• Global economic revival in the first half of 2013• the German economy is experiencing an upturn in autumn 2013; Gdp expected to rise by 0.4 percent this year• Sales of tablet computers expected to equal desktop pC sales for the first time in 2013 at eur 2.8 billion

ATOSS SOFTWARE AG:• Strongest quarterly sales in the company’s history• Full-year outlook: Growth in sales with an eBIt margin securely above 20 percent

EBIT (EUR mill . )

Q1-Q3 11 Q1-Q3 12 Q1-Q3 13

5.5

6.55.9

ORDER INTAKE SOFTWARE LICENCES (EUR mill . )

Q1-Q3 11 Q1-Q3 12 Q1-Q3 13

4.85.1

4.8

TOTAL SALES (EUR mill . )

Q1-Q3 11 Q1-Q3 12 Q1-Q3 13

23.3 24.526.5

SOFTWARE SALES (EUR mill . )

Q1-Q3 11 Q1-Q3 12 Q1-Q3 13

13.9

16.214.9

9Fa C t S o v e r v I e W

(1): Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date, adjusted to exclude borrowings (loans); (2): Dividend of EUR 0.71 per share on 23.04.2012 (KEUR 2.823); Dividend of EUR 3.62 per share on 29.04.2013 (KEUR 14,395); (3): End of quarter / half-year

CONSOLIDATED OVERVIEW AS PER IFRS: 9-MONTH COMPARISON IN KEUR

01.01.2013 - 30.09.2013

Proportion of Total sales revenues

01.01.2012 - 30.09.2012

Proportion of Total sales revenues

Change 2013 / 2012

Sales 26,480 100% 24,515 100% 8%Software 16,229 61% 14,851 61% 9% Software licenses 5,573 21% 5,056 21% 10% Software maintenance 10,656 40% 9,795 40% 9%Consulting 6,587 25% 6,534 27% 1%Hardware 2,588 10% 2,063 8% 25%Miscellaneous 1,076 4% 1,067 4% 1%

EBITDA 6,913 26% 6,340 26% 9%EBIT 6,486 24% 5,918 24% 10%EBT 2,916 11% 6,756 28% -57%Net earnings 2,133 8% 4,563 19% -53%Cash Flow 8,448 32% 5,300 22% 59%Liquidity (1/2) 16,177 28,656 44%EPS (in EUR) 0.54 1.15 -53%Employees (3) 280 273 3%

CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN KEUR Q3/13 Q2/13 Q1/13 Q4/12 Q3/12

Sales 8,949 8,840 8,691 8,490 8,242 Software 5,369 5,585 5,275 5,292 4,977 Licenses 1,779 2,025 1,769 1,931 1,655 Maintenance 3,590 3,560 3,506 3,361 3,322 Consulting 2,165 2,264 2,158 2,182 2,048 Hardware 1,126 569 893 600 851 Others 289 422 365 416 366

EBITDA 2,373 2,322 2,218 1,851 2,028 EBIT 2,230 2,186 2,070 1,702 1,881 EBIT margin in % 25% 25% 24% 20% 23% EBT 2,487 -1,968 2,397 1,772 2,283 Net income 1,707 -1,307 1,733 1,197 1,551 Cash flow 5,658 297 2,493 -1,945 3,143 Liquidity (1/2) 16,177 10,418 24,370 25,444 28,657 EPS (in EUR) 0.43 -0.33 0.44 0.30 0.39 Employees (3) 280 280 279 276 273


CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN EUR

2013 2012

Q3/13 Q2/13 Q1/13 Q4/12 Q3/12

Highest price 29.15 34.10 36.30 21.25 22.04

Lowest price 24.09 24.05 20.76 19.00 19.11

Share price at end of quarter 25.30 24.84 33.80 20.75 21.00

Dividend paid per share (2) 0.00 3.62 0.00 0.00 0.00

Cash flow per share 1.42 0.07 0.63 -0.49 0.79

Liquidity per share (1/2) 4.07 2.62 6.13 6.40 7.21

EPS (undiluted) 0.43 -0.33 0.44 0.30 0.39

EPS (diluted) 0.43 -0.33 0.44 0.30 0.39

Investor Relations

350

300

250

200

150

100

50

SHARE PRICE MOVEMENT: Q1/2007 – Q2/2013

ATOSS Software AG DAXsubsector Software Performance Index

04. J

an 0

7

04. J

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8

04. J

an 0

9

04. J

an 1

0

04. J

an 1

1

04. J

an 1

2

04. J

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3

30. S

ep 1

3

(1): Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date, adjusted to exclude borrowings (loans);

(2): Dividend of EUR 3.62 per share on 29.04.2013 (KEUR 14,395)

11

ATOSS – an attractive investmentonce again over the past twelve months, atoSS shares have clearly outperformed the comparative daxSubsector performance Index. From the beginning of october 2012 until the end of the reporting period, the price of atoSS stock climbed by around 19 percent, while the daxSubsector performance Index put on one percent. taking into account the dividend payment of eur 3.62 at the end of april 2013, the increase was almost 36 percent.

viewed over the longer term, the difference is even clearer. From the beginning of 2007 until September 30, 2013, the atoSS share price climbed 142 percent, whereas the daxSubsector performance Index in the same period put on 53 percent.

Shareholders in atoSS Software aG have seen an increase in the value of their holdings in recent years, not just in terms of the share price alone. dividend payments, too, have added to the attraction of the stock. In accordance with its dividend policy, atoSS distributes around 50 percent of its earnings per share to shareholders. What’s more, in the past there have always been special distributions from time to time, most recently in april 2013.

das ergebnis je aktie betrug im dritten Quartal 2013 eur 0,43. Insgesamt liegt damit der Gewinn pro aktie im Zeitraum Januar-September 2013 bei eur 0,54. Im selben Zeitraum haben sich die liquiden Mittel und der Cash Flow sehr positiv entwickelt. Nach der dividen-denzahlung von eur 3,62 je aktie bzw. einem absoluten Betrag in höhe von eur 14,4 Mio. stiegen die liquiden Mittel im dritten Quartal bereits wieder auf insgesamt eur 16,2 Mio. bzw. einem Betrag von eur 4,07 je aktie an. die liquiden Mittel setzten sich zum 30. September 2013 zu einem drittel aus Gold und zu zwei dritteln aus Sichteinlagen bei Banken zusammen.

earnings per share in the third quarter of 2013 amounted to eur 0.43, bringing total epS for the period from January to September 2013 to eur 0.54. In the same period, liquidity and cash flow also developed along highly positive lines. Following the dividend payment of eur 3.62 per share, a total disbursement in absolute terms of eur 14.4 million, liquidity in the third quarter increased once again to eur 16.2 million, equivalent to eur 4.07 per share. as of September 30, 2013 the company’s liquidity was composed of one third in gold and two thirds in sight deposits at banks.

the results achieved combined with accruals and deferrals essentially contingent on the qualifying dates as well as a reduction in receivables to boost cash flow substantially from eur 5.3 million last year to over eur 8.4 million as of September 30, 2013. Cash flow per share came in at eur 1.42 (previous year: eur 0.79).

the provisional quarterly figures published on 21 october 2013 slightly exceeded expectations, leading analysts at Warburg research in turn to modestly increase their anticipated figures for sales and earnings. the analysts now expect to see a moderate development in the fourth quarter, and again lay stress on the company’s sound balance sheet. they particularly welcomed the high level of liquidity and the reduction of investments in gold to around one third with the remainder in sight deposits. the upside target has been raised to eur 26.20 (previous year: eur 25.50), and the stock continues to be rated as a “hold”.

Further information: www.atoss.com

I N v e S t o r r e l at I o N S

DIVIDEND AND SPECIAL DISTRIBUTION (EUR)

2006 2008 20102007 2009 2011 2012

2,90

5,26

0.44 0.600.31 0.50 0.71 0.720.24

Special distributionDividend

Group Management Report


13G r o u p M a N a G e M e N t r e p o r t

1. Business and conditions: The German economy powers up the German economy in autumn 2013 is on the upturn: Following a decline in economic output in the second half of last year and a stagnant first quarter this year, the leading German economic research institutes in their Joint economic Forecast for autumn 2013 now see the German economy heading clearly upwards. What’s more, according to the economic researchers the upturn is being driven by domestic demand. Contributing factors include the gradual revival in the global economy in the first half of 2013, as well as the somewhat calmer situation in the eurozone and the concomitant reduction in uncertainty.

It is likely that the slightly faster pace of global economic expansion in the first half of 2013 will be maintained in the second half as well as in 2014. Growth of 2.1 percent in global output is expected for 2013, to be followed by an estimated 2.8 percent in 2014. this development is however contingent the crisis in the eurozone being gradually overcome and the debt ceiling being raised in the uSa.

Gross domestic product in Germany should increase by 1.8 percent in 2014, following on from a rise of just 0.4 percent in the current year. this will be accompanied by an expected increase in investment activity resulting from the strong outlook for sales in the global markets, while borrowing conditions remain favorable. Consumer prices are likely to rise only slightly with increases penciled in of 1.6 percent in 2013 and 1.9 percent next year, with private consumption driven by an improving outlook for income and employment.

the high-tech sector, too, takes an optimistic view of the future, with industry association BItKoM predicting further momentum in 2014. Sales in the German ICt market in 2014 are expected to rise by 1.6 percent, while BItKoM in its market outlook for autumn 2013 is predicting current year growth of 4.9 percent in the software market (previous year: 4.4 percent). Software companies and It service providers are also identified as the main drivers behind the positive trend in employment, given that sales growth in this segment translates directly into jobs in Germany.

against this background, in the first nine months atoSS recorded strong business with sales up 8 percent and a 10 percent increase in operating profits (eBIt) – despite high and sustained investments in marketing and development. In its core software business the company achieved sales growth of 9 percent. In addition the order intake has also developed satisfactorily. at eur 5.1 million as of September 30, 2013, the figure was substantially higher than last year’s eur 4.8 million.

2. Earnings position: New record sales and resultsIn the first nine months of financial year 2013 atoSS recorded sales revenues up 8 percent at eur 26.5 million (previous year: eur 24.5 million). In our core software business, sales climbed 9 percent from eur 14.9 million to eur 16.2 million, while sales of software licenses grew by 10 percent from eur 5.1 to eur 5.6 million. Software maintenance, too, continued to develop positively with turnover increasing by 9 percent eur 10.7 million.


as of September 30, consulting sales stood at eur 6.6 million (previous year: eur 6.5 million).

operating profits (eBIt) also increased strongly, rising by 10 percent from last year’s already high level of eur 5.9 million to eur 6.5 million.

however earnings before taxes (eBt) in the reporting period slipped to eur 2.9 million (previous year: eur 6.8 million), due essentially to negative financial earnings of -eur 3.6 million resulting from expenses and losses attributable to the fall in the price of gold.

earnings after tax at the end of June 2013 amounted to eur 2.1 (previous year: eur 4.6 million). earnings per share accordingly came in at eur 0.54 (previous year: eur 1.15).

orders received as of September 30, 2013 amounted to eur 5.1 million (previous year: eur 4.8 million). orders on hand for software licenses at the end of September stood at eur 3.3 million, well above even last year’s high level of eur 3.0 million and providing an excellent starting point for the fourth quarter and coming financial year 2014.

3. Net assets and financial positionIIn the first nine months, cash flow from operations amounted to eur 8.4 million (previous year: eur 5.3 million). at the same time, liquidity (cash and cash equivalents less borrowings) declined relative to the same period last year from eur 15.9 million to eur 10.7 million. the position as a whole comprising liquidity and other current and non-current financial assets, after adjusting for borrowed funds such as loans, slipped from eur 28.7 million to eur 16.2 million. liquidity per share on September 30 including these other current and non-current financial assets and adjusted for borrowings accordingly stood at eur 4.07 (previous year: eur 7.21).

the decline in liquidity relative to the year before was essentially due to the dividend payment in april 2013, which at eur 14.4 million was some eur 11.6 million higher than in 2012.

In addition to net earnings of eur 2.1 million, the eur 8.4 million in cash flow from operations as of September 30, 2013 was also boosted by an adjustment for the net effects – included within the net result in the amount of eur 2.1 million but not attributable to operations - of the disposal and valuation of financial assets available for sale in the amount of eur 3.3 million and an increase in deferred revenues of eur 3.5 million. on the other hand, cash flow was correspondingly reduced by a fall of eur 0.6 million in trade accounts payable.

as of September 30, 2013 atoSS reported an equity ratio following the special distribution of eur 2.90 per share of 48 percent (previous year: 66 percent). Consequently, the company remains extremely well capitalized, with solvency assured at all times.

15

4. Product developmenta high level of expenditure on research & development remains an important component of the atoSS growth strategy with the goal of further extending the company’s strong position as a technological leader in workforce management. research and development costs in the first nine months rose by 5 percent relative to the year before to stand at eur 5.5 million as of the end of September (previous year: eur 5.3 million). r&d costs as a proportion of overall sales amounted to 21 percent (previous year: 22 percent).

the company continues to refrain from capitalizing the expense of developing new products. all expenditure for this purpose is recognized in the income statement in the period in which it is incurred.

5. Employeesthe number of employees has risen from 270 last year to 280. on September 30, 2013 atoSS employed 128 developers (previous year: 118), with a further 71 staff employed in consulting (previous year: 72), 38 in sales and marketing (previous year: 38) and 43 in administration (previous year: 42).

personnel costs for the current financial year amounted as of September 30 to eur 12.5 million (previous year: eur 12.0 million).

6. Risks associated with future developmentthere has been no material change in the company’s risk structure relative to the descripti-on contained in the consolidated financial statements to december 31, 2012.

as a result of the sale of equities in March 2013 and the disposal of 161 of the gold bars held by the company, the market risk associated with financial assets available for sale, being the gold holdings, has reduced at fair value as of September 30, 2013 to eur 5.4 million. the market risk associated with financial assets available for sale (gold) is dependent on the continuing movement in the gold price.

7. Events after the closing datethere have been no reportable events of particular significance since September 30, 2013.

8. OutlookIn the first nine months of the current financial year 2013 atoSS has recorded strong development in sales and operating results. In view of this development and in consideration of the high level of orders on hand, despite further scheduled investments, particularly in developing new markets, and a continuing high level of expenditure on research & develop-ment amounting to around one fifth of sales, the Management Board continues to expect stable sales growth in the current financial year with an eBIt margin in excess of 20 percent.

G r o u p M a N a G e M e N t r e p o r t

16 Q u a r ta l S B e r I C h t 01. 2013

atoSS customer MPREIS

17C o N S o l I d at e d B a l a N C e S h e e t

C ON S OL IDAT ED B A L A NCE SHEE T TO 3 0 .0 9. 2 013Assets (EUR) 30.09.2013 31.12.2012Non-current assetsProperty, plant and equipment 2,720,864 2,764,873Intangible Assets 140,817 141,602Other financial assets 451,105 576,610Deferred taxes 302,491 282,655Total non-current assets 3,615,277 3,765,740Current assetsInventories 7,368 8,667Trade account receivables 3,267,009 3,231,374Other financial assets 4,996,669 16,008,437Other non-financial assets 1,452,831 1,356,572

Cash and cash equivalents 10,729,036 8,859,080

Total current assets 20,452,912 29,464,130Total assets 24,068,190 33,229,870

Equity and Liabilities (EUR) 30.09.2013 31.12.2012EquitySubscribed capital 3,976,568 3,976,568Capital reserve -661,338 -661,338Equity deriving from unrealized profits/losses 34,651 -148,944Unappropriated net income 8,260,075 20,522,139Total equity 11,609,957 23,688,425Non-current liabilitiesPension provisions 1,696,682 1,671,085Deferred taxes 424,440 459,426Total non-current liabilities 2,121,122 2,130,511Current liabilitiesTrade account payables 355,994 354,903Other financial liabilities 4,015,620 4,597,789Deferred revenues 5,764,832 2,281,999Tax provisions 88,306 87,243Other provisions 112,360 89,000Total current liabilities 10,337,112 7,410,934Total equity and liabilities 24,068,190 33,229,870


CONSOLIDATED INCOME STATEMENT FROM 01.01. TO 30.09.2013EUR Quarterly Report 9-Months Report

01.07.2013 - 30.09.2013

01.07.2012 - 30.09.2012

01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Sales revenues 8,949,328 8,242,119 26,480,120 24,515,413Cost of sales -2,746,970 -2,452,328 -7,568,636 -7,166,972Gross profit on sales 6,202,358 5,789,791 18,911,484 17,348,441Selling costs -1,459,566 -1,436,638 -4,464,367 -4,021,667Administration costs -709,122 -696,086 -2,390,977 -2,096,108

Research and development costs -1,794,400 -1,745,519 -5,549,808 -5,302,101Other operating income 23,315 735 35,541 49,614Other operating expenses -32,669 -31,221 -55,877 -60,453Operating profit (EBIT) 2,229,918 1,881,062 6,485,998 5,917,726Interest and similar income 4,899 454,525 429,447 1,114,269Interest and similar expenses 252,125 -52,633 -3,999,161 -276,149Earnings before taxes (EBT) 2,486,942 2,282,954 2,916,284 6,755,846Taxes on income and earnings -779,681 -731,952 -783,172 -2,193,136Net earnings 1,707,261 1,551,002 2,133,112 4,562,710

Earnings per share (undiluted) 0.43 0.39 0.54 1.15Earnings per share (diluted) 0.43 0.39 0.54 1.15

Average number of shares in circulation (undiluted) 3,976,568 3,976,568 3,976,568 3,976,568Average number of shares in circulation (diluted) 3,976,568 3,976,568 3,976,568 3,976,568

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 01.01. TO 30.09.2013EUR 01.01.2013 -

30.09.201301.01.2012 -

30.09.2012

Net earnings 2,133,112 4,562,710Components not reallocated in profit and loss Profits/losses recognized in equity on the disposal of financial assets available for sale

503,533 0

Effects of taxes on income -225,808 0277,725 0

Components reallocated in profit and loss Profits/losses recognized in equity on the disposal of financial assets available for sale

-125,505 662,831

Effects of taxes on income 31,376 -162,370-94,129 500,461

Other income for the period after taxes 183,596 500,461Comprehensive income after taxes 2,316,708 5,063,171

19CoNSolIdated INCoMe StateMeNt | CoNSolIdated StateMeNt oF CoMpreheNSIve INCoMe |

CoNSolIdated CaSh FloW StateMeNt

CONSOLIDATED CASH FLOW STATEMENT FROM 01.01. TO 30.09.2013EUR 01.01.2013 -

30.09.201301.01.2012 -

30.09.2012

Business operations Net earnings 2,133,112 4,562,710Depreciation of fixed assets 427,044 422,361Gains/Losses from the disposal of fixed assets 1 370Gains/Losses from the disposal/valuation of financial assets available for sale 3,336,493 -612,135

Other income financial investment assets -20,409 -329,632Changes in deferred taxes -284,040 503,451Change in pension provision 25,597 9,788Adjustment for other items not recognized in profit or loss 34,785 -162,371

Change in net current assetsTrade account receivables -35,635 -2,629Inventories and other assets -94,960 -495,916Trade account payables 1,091 -454,203Other liabilities -582,169 -631,495Deferred revenues 3,482,833 3,448,681Tax provisions 1,063 -958,610Cash flow from business operations (1) 8,448,165 5,300,370

Investment activitiesExpenditure for the purchase of tangible and intangible assets -382,249 -276,864Expenditure for the purchase of other financial assets 0 -5,778,148Income from the disposal of other financial assets 8,161,456 4,220,078Interest/dividend receipts 47,956 112,442Interest paid -10,195 -82Cash flow from investment activities (2) 7,816,968 -1,722,574

Financing activitiesDividends paid -14,395,176 -2,823,363Income from current borrowings 3,000,000 0Repayment of loans received -3,000,000 0Loans disbursed -3,500,000 0Repayment of loans granted 3,500,000 0Cash flow from financing activities (3) -14,395,176 -2,823,363

Changes in cash and cash equivalents – total of (1) to (3) 1,869,957 754,433Cash and cash equivalents at the start of the period 8,859,080 15,117,296Cash and cash equivalents and the end of the period 10,729,037 15,871,729

20 Q u a r ta l S B e r I C h t 01. 2013

atoSS customer Radio Bremen

© Foto: Klaus Fittschen

21C o N S o l I d at e d S tat e M e N t o F C h a N G e S I N e Q u I t y

CHANGES IN CONSOLIDATED EQUITY AS OF 30.09.2013EUR Subscribed

capitalCapital

reserveTreasury

stockEquity deriving

from unrea-lized profits/

losses

Unapp. ret.earnings

Total

Status 01.01.2012 4,025,667 -387,528 -322,909 205,237 17,585,809 21,106,276Net income 0 0 0 0 4,562,710 4,562,710

Withdrawal of treasury shares -49,099 -273,810 322,909 0 0 0Dividends 0 0 0 0 -2,823,363 -2,823,363Other changes in equity 0 0 0 500,461 0 500,461Status 30.09.2012 3,976,568 -661,338 0 705,698 19,325,156 23,346,084

Status 01.01.2013 3,976,568 -661,338 0 -148,944 20,522,139 23,688,425Net income 0 0 0 0 2,133,112 2,133,112Dividends 0 0 0 0 -14,395,176 -14,395,176Other changes in equity 0 0 0 183,596 0 183,596Status 30.09.2013 3,976,568 -661,338 0 34,651 8,260,075 11,609,957

One share represents 1 euro of subscribed capital.

© Foto: Klaus Fittschen

Notes to the consolidated financial statements


1. Generalthe present report has been prepared in accordance with International Financial reporting Standards (IFrS) in compliance with IaS 1.14. In particular the report complies with the provisions contained in IaS 34 “Interim Financial reporting”. the requirements contained in German accounting Standard (drS) No. 6 regarding interim reporting have likewise been fulfilled.

In accordance with IaS 34.20, the present statements include a consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolida-ted cash flow statement, a consolidated statement of changes in equity and explanatory notes to the consolidated statements.

the same financial accounting, valuation and computation methods have been applied as in the case of the annual financial statements to december 31, 2012. the revised IaS 19, which requires unexpected fluctuations in pension benefit liabilities and assets - so-called actuarial profits and losses – to be recognized immediately in other comprehensive income, plan amendments to be recognized in profit and loss in full in the relevant period and expected interest on plan assets to be recognized at the discount interest rate only, will be applied by the Group at the financial year end, backdated to January 1, 2013.

the Management Board is satisfied that the impression of the economic situation of the company, its net assets, financial position, earnings situation and cash flow conveyed by the present quarterly financial statements accords with the true facts. this interim report has not been subject to an auditors’ review or audit.

2. Reporting period the present interim report was prepared to September 30, 2013 for the reporting period from January 1, 2013 to that date.

3. Currencyall figures are stated in euro. amounts are rounded up to whole euro units.

4. Consolidated group In addition to the parent company atoSS Software aG, Munich, the consolidated financial statements to September 30, 2013 also include all subsidiary companies:

atoSS CSd Software Gmbh, Cham, GermanyatoSS Software Ges.mbh, vienna, austriaatoSS Software aG, Zurich, SwitzerlandatoSS Software S.r.l., timisoara, romania

these companies are fully consolidated.

5. Changes in equitythe development in equity is evident from the consolidated statement of changes in equity.

23N o t e S t o t h e C o N S o l I d at e d F I N a N C I a l S tat e M e N t S


6. Sales revenuesthe company’s sales revenues in the financial year were composed as follows:

the geographic breakdown of sales revenues was as follows:

7. Personnel expensesthe consolidated personnel costs to September 30, 2013 were composed as follows:

EUR 01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Software licenses 5,573,076 5,056,281Software maintenance 10,655,807 9,794,628Total software 16,228,883 14,850,909Consulting 6,586,994 6,533,762Hardware 2,587,941 2,062,875Others 1,076,302 1,067,867Total sales revenues 26,480,120 24,515,413

EUR 01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Germany 24,311,489 22,207,059Austria 1,561,146 1,165,567Switzerland 429,890 565,711German-speaking territories in total 26,302,525 23,938,337Other countries 177,595 577,076Total sales revenues 26,480,120 24,515,413

EUR 01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Wages and salaries 10,376,380 9,954,610Social security contributions and expenditure on retirement pensions and welfare 2,146,264 2,072,577Total personnel costs 12,522,644 12,027,187


8. Other operating income and expensesIn the first nine months of the current financial year the company recorded other operating income in the amount of eur 35,541 (previous year: eur 49,614). this income essentially resulted from the release of reserves.

the other operating expenses amounting to eur 55,877 (previous year: eur 60,453) essentially related to exchange rate losses.

9. Financial investment income and expensesIn the first nine months of the current financial year the company recorded income in the amount of eur 429,447 (previous year: eur 1,114,269) from financial investments. this essentially comprised income from the sale of financial assets in the amount of eur 381,491 (previous year: eur 477,372), interest income in the amount of eur 25,704 (previous year: eur 112,442) and dividends received in the amount of eur 17,354 (previous year: eur 134,763).

the company also recorded expenses amounting to eur 3,999,161 as of September 30, 2013 (previous year: eur 276,149). these expenses essentially comprised valuation and sale losses on the company’s gold holdings in the amount of eur 3,678,960 (previous year: eur 0), the writedown on put options in the amount of eur 168,253 (previous year: eur 0), interest expenditure in connection with pension provisions in the amount of eur 85,377 (previous year: eur 103,729), losses on the disposal of financial assets in the amount of eur 56,377 (previous year: eur 0) and interest on current financial liabilities in the amount of eur 10,193 (previous year: eur 0).

10. Tax charge Consolidated tax expenses to September 30, 2013 were comprised as follows:

the company anticipates that the diminution in value of its gold holdings will be permanent and has taken this into account accordingly in calculating its tax position at the end of the first half-year.

the current tax expense in the amount of eur 229,217 formed as of december 31, 2012 in association with the impairment of the gold holdings recognized in equity has been released to income as of June 30, 2013.

11. Earnings per sharethe figure for earnings per share is arrived at by dividing the net result for the period in the amount of eur 2,133,112 by the weighted average number of shares outstanding. From January 1 to September 30, 2013 there were an average of 3,976,568 shares in circulation. thus earnings per share for this period amounted to eur 0.54, in comparison with eur 1.15 in the first nine months of last year.

EUR 01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Pre-tax earnings (EBT) 2,916,284 6,755,846Expected tax charge (2013: 32.60%, 2012: 32.60%) -950,709 -2,202,406Non-deductible operating expenses -17,741 -9,907Interests as per § 8b KStG 105,438 -56,209Differences in tax rates at consolidated companies 79,839 75,386Actual Group tax charge -783,172 -2,193,136


12. Segment reportingthe identification of operating segments presupposes that a senior decision-maker monitors and assesses the profitability of significant components of the company as the basis for resource allocation and profitability measurement, that the components of the company generate income and incur expenses as part of their business activities, and that financial information is available for these components of the company. Several segments can be aggregated into one segment if the type of products and services, production processes and customers for which the products and services are intended are similar, as well as the sales methods applied, and where they exhibit a significant shortfall relative to the quantitative thresholds for segment formation.

the company has only one uniform business segment within the meaning of IFrS 8 which comprises the creation, sale and implementation of software solutions directed towards the efficient deployment of personnel.

the following tables depict sales revenues broken down by software solutions and their contributions to the operating result.

the individual software solutions comprise:

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE):aSeS and aSe are time and attendance management and workforce scheduling solutions for customers of all sizes in all industries. these software solutions are generally accompanied by other services covering implementation and training. In addition consulting services are rendered with the object of making meaningful use of the available scope and developing optimum solutions for the efficient deployment of personnel under specific operating condi-tions and in consideration of works agreements and industry-wide pay deals. the company also sells hardware components for time recording and access control purposes. aSeS/aSe software is used in conjunction with all major standard system platforms and databases. Moreover thanks to the extensive facility to define customer-specific parameters these solutions are capable of satisfying even the most sophisticated requirements of customers of all sizes in all industries.

ATOSS Time Control (ATC):atC offers a software solution for time and attendance time management and workforce scheduling for small and medium-sized customers, as well as large but decentrally organized clients. likewise in conjunction with atC, atoSS offers software implementation and training as well as consulting services. Merchandise including hardware and recording media is also available. atC software is installed on the Microsoft Windows system platform in association with standard SQl databases and is particularly user-friendly and convenient for small to medium-sized customers as well as large decentralized organizations.


13. Employeeson September 30, 2013 the company had 280 employees (previous year: 270).

14. Management Boardthe members of the Management Board are:

15. Supervisory Boardthe Supervisory Board was elected at the annual general meeting on april 26, 2013 and is now comprised as follows:

16. Board member shareholdingsas of September 30, 2013 the following board members held the following numbers of atoSS shares:

the majority shareholder, andreas F.J. obereder of Grünwald, Germany, holds 1,988,285 shares representing 50.0000025 percent of the shares in atoSS Software. his shares are held via the company aoB Invest Gmbh of Grünwald, Germany, which is wholly owned by him.

EUR 01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Sales revenuesATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 23,731,723 22,567,748ATOSS Time Control (ATC) 2,748,397 1,947,665Total sales revenues 26,480,120 24,515,413

Operating result (EBIT)ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 5,719,173 5,609,819ATOSS Time Control (ATC) 766,825 307,907Operating result (EBIT) in total 6,485,998 5,917,726

EUR 01.01.2013 - 30.09.2013

01.01.2012 - 30.09.2012

Development 128 118Consulting 71 72Sales and marketing 38 38Administration 43 42Total 280 270

30.09.2013 30.06.2013 31.03.2013 31.12.2012 30.09.2012Andreas F.J. Obereder 1,988,285 1,988,285 1,988,285 1,988,285 1,988,285Peter Kirn 14,760 14,760 14,760 14,760 14,760

Andreas F.J. Obereder Chairman and Chief Executive OfficerChristof Leiber Member of the Management Board

Peter Kirn ChairmanRolf Baron Vielhauer von Hohenhau Deputy ChairmanKlaus Bauer Member of the Supervisory Board


17. Notifiable participating interestsIn the first ten months of financial year 2013 the company received the following notifications regarding changes in participating interests pursuant to Sections 21 ff. of the German Securities trading act:

on February 28, 2013 atoSS Software aG was informed by Investmentaktiengesellschaft für langfristige Investoren tGv of Bonn, Germany, pursuant to § 21 para. 1 of the German Securities trading act that on February 27, 2013 its voting share in atoSS Software aG of Munich, Germany had fallen below 5 percent of the voting rights and on that day amounted to 4.96 percent (equivalent to 197,250 voting rights).

on october 28, 2013 atoSS Software aG was informed by Investmentaktiengesellschaft für langfristige Investoren tGv of Bonn, Germany, that on october 22, 2013 its voting share in atoSS Software aG of Munich, Germany, had exceeded 5 percent of the voting rights and on that day amounted to 5,004 percent (equivalent to 198,998 voting rights).

there have been no further notifications pursuant to §§ 21ff of the German Securities trading act regarding changes in participating interests.

18. Business transactions with closely related personsIn accordance with a resolution adopted by the Supervisory Board at its meeting on March 5, 2013, the company granted a loan in the amount of eur 3.5 million to the controlling share-holder aoB Invest Gmbh of Grünwald. the loan was granted on standard market terms and subject to standard security. the loan was repaid on april 30, 2013.

the wife of the Chief executive officer provides services to the company. In the first nine months of the financial year 2013 the value of these services amounted to eur 1,872 (previous year: eur 4,056). the company is satisfied that the terms agreed for these transactions are standard market terms.

19. Events after the closing datethere have been no reportable events of particular significance since September 30, 2013.


according to the best of our knowledge, we assure that, pursuant to the applicable accounting principles for interim reporting, the interim consolidated financial statements convey a true and fair view of the Group‘s net assets, financial position and results of operations, and that the business development, including the business results and the Group‘s position, are presented in the interim Group management reports in such a way that they convey a true and fair view, and that the key opportunities and risks pertaining to the Group‘s prospective development in the remainder of the fiscal year are described.

Munich, November 15, 2013

andreas F.J. obereder Christof leiberChairman of the Management Board/Ceo Member of the Management Board

Declaration by the Legal Representatives

31r e S p o N S I B I l I t y S tat e M e N t | d I S C l a I M e r

this report contains forward-looking statements that are based on the conviction of the Management Board of atoSS Software aG and reflect current assumptions and estimations. these forward-looking statements are subject to risks and uncertainties. Many facts that cannot currently be predicted may cause the actual performance and earnings of atoSS Software aG to develop in a different manner. this could for example include the non- acceptance of newly introduced products or services, changes in the general economic and business climate, a failure to achieve efficiency and cost-reduction targets or changes in business strategy.

the Management Board is firmly convinced that the expectations embodied in these forward-looking statements are sound and realistic. Should however the above-mentioned or other unforeseeable risks materialize, atoSS Software aG cannot guarantee that the expressed expectations will prove to be correct.

Disclaimer

31.01.2014 Press release announcing preliminary results for 2013

12.03.2014 Publication of the annual report for 2013

12.03.2014 Balance sheet press conference

17.04.2014 Press release announcing three months‘ statement

30.04.2014 Annual General Meeting

13.05.2014 Publication three months‘ statement

22.07.2014 Press release announcing six months‘ statement

12.08.2014 Publication six months‘ statement

21.10.2014 Press release announcing nine months‘ statement

14.11.2014 Publication nine months‘ statement


Financial calendar

33F I N a N C I a l C a l e N d a r | I M p r e S S u M

reSpoNSIBIlIt y lIeS WIth

ATOSS Software AG Am Moosfeld 3 D-81829 Munich T +49 89 4 27 71-0 F +49 89 4 27 71-100 www.atoss.com [email protected]

INveStor rel atIoNS

ATOSS Software AG Investor Relations Christof Leiber T +49 89 4 27 71 0 F +49 89 4 27 71 100 [email protected]

Impressum

SuBSIdIarIeS

DeutschlandATOSS CSD Software GmbHRodinger Straße 19 93413 ChamGermanyT +49 99 71 85 18 0 Österreich ATOSS Software Ges. mbHEuropaplatz 2/1/21150 ViennaAustriaT +43 1 7 17 28 334

SchweizATOSS Software AGLeutschenbachstraße 95 8050 ZurichSwitzerlandT +41 44 3 08 39 56

RumänienSC ATOSS Software SRLStr. Diaconu Coresi, Nr. 31 300588 TimisoaraRomaniaT +40 356 71 01 82

other oFFICeS

DüsseldorfRobert-Bosch-Straße 1440668 MeerbuschGermanyT +49 21 50 9 65 0

FrankfurtCampus CarréHerriotstraße 860528 Frankfurt/MainGermanyT +49 69 13 82 43 0

HamburgOsterbekstraße 90b 22083 HamburgGermanyT +49 40 27 81 63 0

StuttgartZettachring 10a 70567 StuttgartGermanyT +49 7 11 7 28 73 200

Financial calendar

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