SEMI-ANNUAL REPORT 2000

Full text

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We set world standards in

control and communication technology

in our fields of business

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With 18.1 million DM, income of orders exceeded those of the previous year’s comparative period by 23%; thus, orders were within the planning range for the past six months. During the first six months, the Softing group achieved a turnover of 16.4 million DM worldwide. Thus, 39% of the planned annual sales of 42.1 million DM were achieved already in this period. The seasonal variations of our business with a significant in-crease in turnover during the last quarter of the business year must be taken into account, as well as the 4CONTROL turnovers not yet realized on June 30th.

The deficit on June 30th, 2000, amounted to 80,200 DM. This means that the planned annual net profit of 2.2 million DM for the business year 2000 could not yet be partially achieved. This is mainly due to higher general operating expen-ses for the first six months, caused by the expan-sion of our distributor network and an increase in costs for internationalization of our product mar-keting.

For the end of the business year 2000, we count on approaching the central targets of our business plan very closely. The turnover will increase by 20% as compared to the previous year.

In June, our first foreign affiliate company Softing Industrial Solutions Italia S.R.L. in Verona was founded. Operational business started in July with the aim of substantially expanding distribution and product support in the business areas Industrial Automation and 4CONTROL – Internet-based Automation on the Italian market.

Employees

Because of the continuing strains on the labor market for IT experts, the number of our em-ployees has not grown as much as was planned. In the first six months of 2000, this number has increased to 184. Due to the limited number of software development engineers in Germany, Softing has by now taken a new course in the acquisition of employees. By means of staff re-cruitment measures in Eastern and Western Europe which have already begun, we expect to acquire the necessary personnel during the next few months.

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Automotive Electronics – a Fundamental Factor for Softing

Automotive Electronics has been one of Softing’s most fundamental business areas. Incoming orders (8.3 million DM) increased by 39% as com-pared to the corresponding period of the previous year. With 6.5 million DM, however, turnover was still 17% below the planned semi-annual turn-over. This was due to the lack of additional staff particularly in this area, which led to delays in

some projects. The EBT amounts to -0.64 million DM. For the next six months, however, we expect to catch up on our annual plans of 16.5 million DM turn-over and 3.2 million DM EBT in Automotive Electronics, particular-ly due to the recruit-ment measures mentioned above.

Industrial Automation – Encouraging Developments for all Core Indicators

There was a positive development for the core indicators in Industrial Automation. With 8.4 million DM, incoming orders were above the prior-year level. Due to increased product sales, the turnover amounted to 8.8 million DM and thus 39% of the annual plan of 22.5 million DM could already be fulfilled.

The EBT of 0.65 million DM is also encouraging. Both turnover and EBT are above the planned figures for the first six months. The central targets of the business year will probably be surpassed. With the Swedish ABB Robotics AB, a supply con-tract over several years could be signed; an annual turnover of approx. 2 million DM for the next few years is envisaged.

4CONTROL – Internet-Based Automation – Breakthrough in Product Placement

For the first six months, incoming orders already amounted to 1.3 million DM (first six months 1999: 120,000 DM); turnover was 1.0 million DM. For the next six months, we count on a continuin-gly strong increase in incoming orders and, due to an increase in deliveries, we expect to increasingly catch up on our planned turnover of 3.3 million DM for the entire business year. Especially our cooperation with an internationally established drive manufacturer lets us expect a significant increase in turnover for 2001. The EBT for the first six months amounted to -1.95 million DM with a planned EBT of -3.5 million DM for the year 2000.

The ongoing change of paradigms from hardware technology to software-based automation technolo-gy opens up a completely new ultimate consumer market for Softing worldwide.

With its product 4CONTROL, Softing not only has assumed technology leadership, but currently also grows from a manufacturer and supplier of automation components to a global market leader and vendor of automation technology for Internet-based PC control systems.

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As of May 16th, 2000, Softing AG is listed on the Neuer Markt of the German stock exchange mar-ket in Frankfurt. A total of 1.55 million shares, including greenshoe, were offered for sale. Thus, 31% of the entire stock portfolio are free float shareholdings. Our stocks are distributed in ade-quate proportions to both private and institutional investors.

Our company’s IPO took place during a time of uncertainty on the exchange market, when several companies postponed or even cancelled their planned IPOs. Therefore, we are proud to note that the first price of 16.00 Euro exceeded the issue price of 14.50 Euro by 10.3%. As a newcomer on the Neuer Markt, Softing was able to gain a leading position with a stock rate of 27.40 Euro on June 30th, 2000, and an advance of 89% as compa-red to the issue price.

Company Calendar

Quarterly Report 3-2000 22.11.2000 Certified annual statement 30.03.2001 Balance press conference / DVFA in Frankfurt

05.04.2001 Management report in German and English

April/May 2001 Quarterly Report 1-2001 22.05.2001 General shareholders’ meeting in Munich

29.05.2001 Quarterly Report 2-2001 14.08.2001 Contact Investor Relations Tel.: +49 (89) 4 56 56-333 Fax: +49 (89) 4 56 56-492 Email: InvestorRelations@softing.com http://www.softing.com

S u c c e s s f u l I P O –

V o l a t i l e P r i c e s

SOFTING AG

32 30 28 26 24 22 20 18 16 14 16.05 20.05 24.05 28.05 01.06 05.06 09.06 13.06 17.06 21.06 25.06

Final daily quotation official market Frankfurt

30.06

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G r o u p b a l a n c e s h e e t a c c o r d i n g t o I A S ;

s t a t u s : J u n e 3 0 t h , 2 0 0 0 ( n o t a u d i t e d )

30.6.2000 DM 14.629.565,00 1.742.664,00 476.136,00 16.848.365,00 2.065.569,00 7.353.412,00 14.473,00 245.865,00 7.613.750,00 1.599.040,00 19.975.669,00 31.254.028,00 58.066,00 48.160.459,00

ASSETS

A. Fixed assets I. intangible assets

industrial property rights and similar rights and values as well as licenses to such rights and values

II. tangible assets other assets, furnitures and fixtures III.financial assets

B. Current assets

I. stocks

II. accounts receivable and other assets 1. trade debtors

2. loans to affiliated undertakings 3. other assets

III.investments

IV. liquid funds

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30.6.2000 DM 9.779.150,00 19.098.552,00 1.256.072,00 6.116.090,00 36.249.864,00 4.902.000,00 1.074.228,00 0,00 2.819.928,00 3.894.156,00 43.227,00 329.204,00 360.831,00 598.433,00 1.782.744,00 3.114.439,00 48.160.459,00

LIABILITIES AND SHAREHOLDERS EQUITY

A. Equity capital

I. subscribed capital II. capital reserves

III.reserve from capital consolidation IV. consolidated net earnings

B. Deferred taxes

C. Accruals

1. accruals for pensions and similar liabilities 2. provisions for taxation 3. other accruals

D. Liabilities

1. liabilities to credit institutions

2. liabilities from long-term production orders 3. customer prepayments for orders

4. trade accounts payable 5. other liabilities

G r o u p b a l a n c e s h e e t a c c o r d i n g t o I A S ;

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G r o u p P r o f i t a n d L o s s A c c o u n t A c c o r d i n g

t o I A S ; S t a t u s : J u n e 3 0 t h , S e m i - A n n u a l 2 0 0 0

30.6.2000 DM 16.358.609,00 524.413,00 2.882.478,00 556.164,00 -3.162.434,00 -594.685,00 16.564.545,00 -9.516.038,00 -1.582.697,00 -3.722.642,00 -3.979.449,00 -2.236.281,00 - 25.000,00 140.602,00 -46.456,00 -2.117.135,00 35.100,00 - 35.100,00 2.004.345,00 -2.540,00 -80.230,00 6.196.320,00 6.116.090,00 -0,10 x 1. Sales revenues

2. Change in inventory of finished and unfinished products

3. Other internally produced and capitalized assets 4. Other operating revenue

5. Raw materials and consumables

a) expenses for raw materials and supplies and for purchased goods

b) expenses for purchased services 6. Staff costs

a) wages and salaries

b) social insurance contributions and social security costs for old age pension and for support

7. Amortization of intangible and tangible assets 8. Other operating expenses

9. Income from participations

10. Income from long-term financial investments 11. Other interests and similar earnings 12. Interest and related expenses

13. Result of ordinary business activities

14. Extraordinary income 15. Extraordinary expenses

16. Extraordinary result

17. Income taxes 18. Other taxes

19. Annual net profit / deficit (-)

20. Profit/loss carried forward (-)

21. Consolidated profit / consolidated loss (-)

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G r o u p C a s h - F l o w S t a t e m e n t A c c o r d i n g

t o I A S ; S t a t u s : J u n e 3 0 t h , S e m i - A n n u a l 2 0 0 0

30.6.2000 TDM -80 3.723 -1.953 -2.989 0 -547 535 -14 508 -1.599 -268 521 -273 -225 -43 -2.707 -7 -484 -40 -532 4.680 0 -419 16.116 0 20.378 17.139 2.836 19.976

Net income/(-) loss

Amortization of intangible assets and depreciation on tangible assets Change in long-term reserves

Capitalization of self-produced intangible assets Result from the disposal of fixed assets

including shareholdings Increase in inventories

Decrease in trade accounts receivable including long-term receivables

Increase in trade accounts receivable from related companies Change in other assets and deferred charges

and prepaid expenses including long-term loans Change in stocks

Change in other reserves

Change in advance payments received

Change in trade accounts payable including liabilities from long-term contracts Decrease in other liabilities

Change in liabilities due to banks

Funds provided by operating activities

Payments received on disposals of fixed assets Payments made for investments in fixed assets Payments made for investments in financial assets

Funds used for investing activities

Capital increase/decrease

Capital subscribed, eliminated due to the initial consolidation

Change in reserve from capital consolidation Transfer to capital reserves minus withdrawals

Net profit available eliminated due to initial consolidation

Funds provided by financing activities

Cash value change of net funds

Net funds at the beginning of the period

Figure

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References

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