Q2 - atoss.com · Q2 .13. ATOSS Quarterly Report 02.2013 ATOSS customer HUK-COBURG. 3 ATOSS Quarterly Report 02.2013. 4 QUARTERLY REPORT 02. 2013 Andreas F.J. Obereder and Christof

Q2 .13

ATOSS Quarterly Report 02.2013

ATOSS customer HUK-COBURG

3

ATOSS Quarterly Report 02.2013

4 Q U A R T E R LY R E P O R T 0 2 . 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

In the first half of 2013, ATOSS Software AG has continued to record the pattern of growth achieved in the preceding years. Once again we have demonstrated the high degree of stability of our business model in an economically challenging environment. Workforce management continues to become ever more relevant. There are no signs that this trend is ending, quite to the contrary. The challenges facing the world of personnel management, now and in the future, serve only to stimulate this development still further. If businesses are to succeed in times of change, it is critical that they operate flexibly, proactively, adaptively and with initiative.

Precisely here lies the key to the success of ATOSS. Our workforce management software ensures that companies have the ability to collate relevant information. Our solutions identify the demand for staffing, simulate scenarios and prepare deployment schedules that take all the respective requirements into account. At the same time, our software also facilitates the analysis and preparation of data covering all aspects of workforce management in the form of business intelligence. In this way, the results delivered ensure that our customer benefit from the continuous optimization of working hours, not least in consideration of ergonomic and health criteria.

Once again in the first half of this year, this high level of functionality and the user benefits that companies experience very rapidly after implementation have attracted numerous new and follow-up orders, with the result that orders received for software licences are significantly up on the year before. The relevance of workforce management is being perceived across a broad range of sectors. however it is in the retail, healthcare as well in manufacturing and logistics sector that we have experienced the greatest willingness to invest in our customized solutions. We regard the success we have achieved as an endorsement of our corporate strategy, and we are planning customized solutions for other sectors.

Technology: Significance and trends

Investment in research & development is both a tradition and a paramount priority at ATOSS. We believe that our customers are entitled to expect products that offer maximum perfor-mance. In turn, this philosophy has earned us a competitive advantage which we intend to maintain and expand under all circumstances. In the past half-year we have increased our expenditure as planned in this field, as well as in the field of sales and marketing. These investments form the basis for future growth and safeguard the future of ATOSS.

Thanks to the technological advances of recent years, information and communication are now no longer dependent on time or space. Worldwide, around 35 percent of all employees have mobile links with the world of work – and the share is rising. In the hard-fought contest

Dear Shareholders,Ladies and Gentlemen,


for skilled labor, a modern system of values increasingly demands the introduction of flexible working patterns. Companies in turn are compelled to accommodate these developments in structuring their own employment organization. Mobile applications and mobile terminal devices must be integrated into business processes – there is simply no alternative. For us at ATOSS, this issue is therefore high on the agenda. In the recent past we have made major progress, and we are working specifically to refine and optimize these advances.

The pattern of record growth that has been sustained for seven years and which was once again evident in the development of our business operations in the first half of 2013 shows that we hold the answers to urgent issues and questions. We therefore expect – also on the basis of the excellent order intake for software licences in the first half-year – to see a continuing positive trend in sales and operating profits in the year as a whole, with an EBIT margin securely above 20 percent. Yours sincerely,

Andreas F.J. Obereder Christof LeiberChairman of the Management Board/CEO Member of the Management Board

7

ATOSS customer GKN Driveline

© G

KN

plc


Facts Overview

ECONOmiC BaCKGROUND• The German Institute for Economic Research (dIW Berlin) economic barometer shows continuing

growth of 0.5 percent or more in the second quarter relative to Q1• The current BITKOM (the trade association for the IT, telecoms and new media industries) sector

barometer indicates positive full-year business expectations

aTOSS SOfTwaRE aG• Strong order intake for software licences in the first half underscores the topicality and future relevance of

workforce management• development in sales and operating earnings remains positive as before

EBiT (EUR mill . )

1. HY 11 1.HY 12 1.HY 13

3.94.3

4.0

ORDER iNTaKE SOfTwaRE LiCENCES (EUR mill . )

1. HY 11 1.HY 12 1.HY 13

3.33.5

2.8

TOTaL SaLES (EUR mill . )

1. HY 11 1.HY 12 1.HY 13

15.8 16.317.5

SOfTwaRE SaLES (EUR mill . )

1. HY 11 1.HY 12 1.HY 13

9.3

10.99.9

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) adjusted to exclude borrowings (loans) as of the qualifying date

(2): Dividend of EUR 0.71 per share on 23.04.2012 (TEUR 2,823) and EUR 3.62 on 29.04.2013 (TEUR 14,395) (3): End of quarter / half-year

CONSOLiDaTED OVERViEw aS PER ifRS: HaLf-YEaRLY COmPaRiSON iN TEUR

01.01.2013 - 30.06.2013

Proportion of total sales

01.01.2012 - 30.06.2012

Proportion of total sales

Veränderung 2013 zu 2012

Sales 17,531 100% 16,273 100% 8% Software 10,860 62% 9,874 61% 10% Licenses 3,794 22% 3,401 21% 12% Maintenance 7,066 40% 6,473 40% 9% Consulting 4,422 25% 4,486 28% -1% Hardware 1,462 8% 1,212 7% 21% Others 787 5% 701 4% 12%

EBiTDa 4,540 26% 4,312 26% 5% EBiT 4,256 24% 4,037 25% 5% EBT 429 2% 4,473 27% -90% Net income 426 2% 3,012 19% -86% Cash flow 2,790 16% 2,157 13% 29% Liquidity (1/2) 10,418 24,615 -58% EPS (in EUR) 0.11 0.76 -86% Employees (3) 280 266 5%

CONSOLiDaTED OVERViEw aS PER ifRS: QUaRTERLY COmPaRiSON iN TEUR Q2/13 Q1/13 Q4/12 Q3/12 Q2/12

Sales 8,840 8,691 8,490 8,242 8,437 Software 5,585 5,275 5,292 4,977 5,017 Licenses 2,025 1,769 1,931 1,655 1,745 Maintenance 3,560 3,506 3,361 3,322 3,272 Consulting 2,264 2,158 2,182 2,048 2,248 Hardware 569 893 600 851 665 Others 422 365 416 366 507

EBiTDa 2,322 2,218 1,851 2,028 2,207 EBiT 2,186 2,070 1,702 1,881 2,070 EBiT margin in % 25% 24% 20% 23% 25% EBT -1,968 2,397 1,772 2,283 2,147 Net income -1,307 1,733 1,197 1,551 1,465 Cash flow 297 2,493 -1,945 3,143 -1,001 Liquidity (1/2) 10,418 24,370 25,444 28,657 24,615 EPS (in EUR) -0.33 0.44 0.30 0.39 0.37 Employees (3) 280 279 276 270 266


CONSOLiDaTED OVERViEw aS PER ifRS: QUaRTERLY COmPaRiSON iN EUR

2013 2012

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

Highest price 34.10 36.30 21.25 22.04 22.80

Lowest price 24.05 20.76 19.00 19.11 18.76

Share price at end of quarter 24.84 33.80 20.75 21.00 19.84

Dividend paid per share (2) 3.62 0.00 0.00 0.00 0.71

Cash flow per share 0.07 0.63 -0.49 0.79 -0.25

Liquidity per share (1/2) 2.62 6.13 6.40 7.21 6.19

EPS (undiluted) -0.33 0.44 0.30 0.39 0.37

EPS (diluted) -0.33 0.44 0.30 0.39 0.37

Investor Relations

350

300

250

200

150

100

50

SHaRE PRiCE mOVEmENT: Q1/2007 – Q2/2013

ATOSS Software AG DAXsubsector Software Performance Index

01st J

an 0

7

01st J

an 0

8

01st J

an 0

9

01st J

an 1

0

01st J

an 1

1

01st J

an 1

2

01st J

an 1

3

30th

Jun

13

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

(2): Dividend of EUR 0.71 per share on 23.04.2012 (TEUR 2,823) and EUR 3.62 on 29.04.2013 (TEUR 14,395)

11

Share price development and dividend policy favor a longterm commitmentIn the first quarter of 2013, ATOSS stock peaked at a new record high of EUR 36.30. Following the annual general meeting at the end of April and the subsequent payment of the dividend and special distribution, the stock price declined to stand at EUR 24.84 at the end of June. Nevertheless, ATOSS shares ended the first half at a higher level than before the distribution was announced. From this perspective ATOSS out-performed its relevant benchmark, the daxsubsector Performance Index. A long-term comparison reveals this trend with particular clarity. Over the period from 2007 to the end of h1 2013 ATOSS shareholders saw the price of their shares climb 138 percent, whereas the daxsubsector Performance Index over the same period put on just 57 percent.

Each year, provided that it is a position to do so, ATOSS Software AG distributes around 50 percent of its earnings per share to its shareholders. The company has consistently pursued this transparent policy since 2003. In addition, special distributions have also been paid, as for financial year 2012. In total, long-term holders of ATOSS shares have in ten years received EUR 14.79 in dividends per share.

analysts stand by strong operating forecastFollowing publication of the provisional quarterly figures, analysts at Warburg Research awarded ATOSS Software AG a positive rating in recognition of the marked increase in sales and strong development at an operating level. Financial earnings were depressed due to the negative development in the gold price, which, however, was considered to have only minor influence over the company’s fair value. In particular, the analysts stressed the strong intake of orders for software licenses which on the qualifying date of June 30, 2013 were up by 27 percent relative to the preceding year. Given that the share price - triggered by the announcement of a special distribution, rose above EUR 36.00 intermediately before undergoing a marked correction following the annual general meeting on April 26, 2013 - as well as in view of the strong developments at an operating level, analysts lifted their stock rating to hold, with an upside target of EUR 25.50.

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: German economy puts in modest growth Following a weak winter half-year, the economic forecasts by both the ifo Institute and the dIW point to a modest upturn in the German economy in the course of 2013. In the first quarter of 2013 real gross domestic product increased by just 0.1 percent, following on from a decline in macroeconomic output of 0.7 percent. Accordingly to the dIW economic forecast for Q2, the German economy is expected to have grown by a modest 0.5 percent. The manufacturing sector was the prime mover in this expansion, powered by buoyant export demand. With a look to the year as a whole the ifo Institute forecasts economic growth of 0.6 percent. Based on the results of the ifo Business Survey, an economic revival would seem probable. Business expectations among manufacturers are generally positive. The volatility of the business climate index in the course of the year to date, however, points to a continuing high degree of uncertainty with regard to the development of the European debt crisis.

In counterpoint to the expectations for the economy as a whole, the high-tech sector takes a more optimistic view of 2013. According to the business survey conducted by trade association BITKOM, the overwhelming majority of German ICT companies continue to take a positive view of their current prospects, although the level of confidence is somewhat weaker. In the first half of 2013 the majority of companies surveyed recorded rising sales, though earnings lagged behind expectations. Nevertheless, these companies are optimistic in their assessment of their business prospects for 2013 as a whole, with 68 percent expecting growth in sales. The trade association BITKOM forecasts growth of 4.6 percent for the software market in 2013 (previous year: 5.1 percent).

The development both in the economy as a whole and in the IT environment notwithstanding, in the first six months ATOSS recorded strong business with sales up 8 percent and a 5 percent increase in operating profits (EBIT), also after taking investments, particularly in sales and marketing and development into account. The company achieved sales growth of 10 percent in its core software business, while orders on hand for software licences at EUR 3.6 million were well up on last year’s figure of EUR 2.7 million.

2. Earnings position: further record sales and earningsIn the first six months of the 2013 financial year ATOSS recorded sales up 8 percent at EUR 17.5 million (previous year: EUR 16.3 million). In our core software business, sales climbed 10 percent from EUR 9.9 million to EUR 10.9 million, while sales of software licenses advanced by 12 percent from EUR 3.4 to EUR 3.8 million. Software maintenance, too, continued to develop positively with turnover increasing by 9 percent from EUR 6.5 million to EUR 7.1 million. As of June 30, consulting sales stood at EUR 4.4 million (previous year: EUR 4.5 million).

The operating profit (EBIT) was 5 percent higher than in the previous year, rising from EUR 4.0 million to EUR 4.3 million.

however, earnings before taxes (EBT) in the reporting period slipped to EUR 0.4 million (previous year: EUR 4.5 million), due essentially to negative financial earnings of EUR -3.8 million as a result of gold price developments.

Earnings after tax at the end of June 2013 amounted to EUR 0.4 (previous year: EUR 3.0 million), equating to earnings per share of EUR 0.11 (previous year: EUR 0.76).


Orders received for software licenses as of June 30, 2013 amounted to EUR 3.6 million (previous year: EUR 2.8 million). Orders on hand for software licenses at the end of June stood at EUR 3.6 million, well above last year’s high level of EUR 2.7 million and providing an excellent starting point for the rest of the current financial year.

3. Net assets and financial positionIn the first six months, cash flow from operations amounted to EUR 2.8 million (previous year: EUR 2.2 million). Cash and cash equivalents including borrowings were down from EUR 12.8 million to EUR 3.4 million. Liquidity comprising cash and other current and non-current financial assets, after adjusting for borrowed funds such as loans, dropped from EUR 24.6 million to EUR 10.4 million. Liquidity per share on June 30 including these other current and non-current financial assets and adjusted for borrowed funds stood at EUR 2.62 (previous year: EUR 6.19).

The decline in liquidity relative to the year before is essentially attributable to the dividend payment which was some EUR 11.6 million higher at EUR 14.4 million, a valuation allowance against the company’s gold holdings and losses on the disposal of gold of EUR 4.0 and an increase in cash flow from operations which rose from EUR 0.6 last year to EUR 2.8 million. In addition to net earnings of EUR 0.4 million, the EUR 2.8 million in cash flow from opera-tions was also boosted by the net effects of the disposal and valuation of financial assets available for sale in the amount of EUR 3.6 million and an increase in deferred revenues of EUR 1.3 million. Cash flow was by contrast reduced primarily by a reduction in other current liabilities in the amount of EUR 0.7 million and an increase in trade receivables and other current non-financial assets of EUR 1.7 million.

As of June 30, 2013 ATOSS reported an equity ratio following the special distribution of EUR 2.90 per share of 43 percent (previous year: 68 percent). The company thereby remains extremely well capitalized, with solvency assured at all times.

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 six months rose by 6 percent relative to the year before to stand at EUR 3.8 million (previous year: EUR 3.6 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.

15

5. EmployeesThe number of employees has risen from 266 last year to 280. On June 30, 2013 ATOSS employed 124 developers (previous year: 118), with a further 71 staff employed in consulting (previous year: 69), 43 in sales and marketing (previous year: 39) and 42 in administration (previous year: 40).

As of June 30, personnel costs for the current financial year amounted to EUR 8.3 million (previous year: EUR 8.1 million).

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

As a result of the sale of equities in March 2013 and the commitment to dispose of 161 of the gold bars held by the company which was effected on July 3, 2013, the market risk associa-ted with financial assets available for sale, being the gold holdings, has reduced at fair value as of June 30, 2013 to EUR 5.1 million. The market risk associated with financial assets available for sale (gold) is dependent on the movement in the gold price.

7. Events after the closing dateThe transaction entered into on June 27, 2013 for the sale of 161 gold bars (purchase price: EUR 6.7 million) was completed on July 3, with the proceeds of the sale amounting to EUR 4.9 million. The resulting effects on earnings have been allowed for as of June 30, 2013.

In addition on July 15, 2013 the company also repaid the sum of EUR 3.0 million in liabilities resulting from a bank loan.

There have been no further reportable events of particular significance since June 30, 2013

8. OutlookIn the first six months of the current financial year 2013 ATOSS has recorded strong deve-lopment in sales and earnings. In view of this development and in consideration of the high level of orders on hand for software licenses, despite further scheduled investments, particularly in developing new markets, and a continuing high level of expenditure on research & development amounting to around one fifth of sales, the Management Board continues to expect moderate 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 SportScheck

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 6 . 2 013assets (EUR) 30.06.2013 31.12.2012Non-current assetsProperty, plant and equipment 2,651,395 2,764,873Intangible Assets 127,349 141,602Other financial assets 425,240 576,610Deferred taxes 295,879 282,655Total non-current assets 3,499,863 3,765,740Current assetsInventories 8,164 8,667Trade account receivables 4,381,470 3,231,374Other financial assets 9,564,299 16,008,437Other non-financial assets 1,876,966 1,356,572

Cash and cash equivalents 3,428,617 8,859,080

Total current assets 19,259,516 29,464,130Total assets 22,759,379 33,229,870

Equity and Liabilities (EUR) 30.06.2013 31.12.2012EquitySubscribed capital 3,976,568 3,976,568Capital reserve -661,338 -661,338Equity deriving from unrealized profits/losses 15,253 -148,944Unappropriated net income 6,552,814 20,522,139Total equity 9,883,297 23,688,425Non-current liabilitiesPension provisions 1,688,149 1,671,085Deferred taxes 332,829 459,426Total non-current liabilities 2,020,978 2,130,511Current liabilitiesTrade account payables 249,212 354,903Other financial liabilities 3,000,000 0Other liabilities 3,895,564 4,597,789Deferred revenues 3,573,016 2,281,999Tax provisions 48,312 87,243Other provisions 89,000 89,000Total current liabilities 10,855,104 7,410,934Total equity and liabilities 22,759,379 33,229,870


CONSOLiDaTED iNCOmE STaTEmENT fROm 01.01. TO 30.06.2013EUR Quarterly Report 6-months Report

01.04.2013 - 30.06.2013

01.04.2012 - 30.06.2012

01.01.2013 - 30.06.2013

01.01.2012 - 30.06.2012

Sales 8,839,865 8,437,124 17,530,792 16,273,294Cost of sales -2,359,385 -2,489,295 -4,821,667 -4,714,644Gross profit on sales 6,480,480 5,947,829 12,709,125 11,558,650Selling costs -1,552,982 -1,374,992 -3,004,800 -2,585,030Administration costs -837,567 -705,372 -1,681,855 1,400,022

Research and development costs -1,928,108 -1,803,060 -3,755,408 -3,556,582Other operating income 4,610 7,474 12,226 48,879Other operating expenses 19,330 -2,011 -23,208 -29,231Operating profit (EBiT) 2,185,763 2,069,868 4,256,080 4,036,664Interest and similar income 12,694 150,415 424,548 659,744Interest and similar expenses -4,166,450 -73,605 -4,251,286 -223,516Earnings before taxes (EBT) -1,967,993 2,146,678 429,342 4,472,892Taxes on income and earnings 660,570 -682,115 -3,491 -1,461,185Net earnings -1,307,423 1,464,563 425,851 3,011,707

Earnings per share (undiluted) -0.33 0.37 0.11 0.76Earnings per share (diluted) -0.33 0.37 0.11 0.76

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 30.06.2013EUR 01.01.2013 -

30.06.201301.01.2012 -

30.06.2012

Net earnings 425,851 3,011,707Components 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

-151,370 104,143

Effects of taxes on income 37,842 6,820-113,528 110,963

Other income for the period after taxes 164,197 110,963Comprehensive income after taxes 590,048 3,122,670

19CONSOLIdATEd INCOME STATEMENT | CONSOLIdATEd STATEMENT OF COMPREhENSIvE INCOME |

CONSOLIdATEd CASh FLOW STATEMENT

CONSOLiDaTED CaSH fLOw STaTEmENT fROm 01.01. TO 30.06.2013EUR 01.01.2013 -

30.06.201301.01.2012 -

30.06.2012

Business operations Net earnings 425,851 3,011,707Depreciation of fixed assets 283,816 275,105Gains/Losses from the disposal of fixed assets 0 370Gains/Losses from the disposal/valuation of financial assets available for sale 3,634,283 -434,796

Other income financial investment assets -17,186 -70,531Changes in deferred taxes -369,038 152,854Change in pension provision 17,064 6,525Adjustment for other items not recognized in profit or loss 41,251 6,820

Change in net current assetsTrade account receivables -1,150,097 -299,347Inventories and other assets -519,890 -196,892Trade account payables -105,691 -455,351Other liabilities -702,224 -1,151,882Deferred revenues 1,291,016 1,194,773Tax provisions -38,931 117,227Cash flow from business operations (1) 2,790,224 2,156,582

investment activitiesExpenditure for the purchase of tangible and intangible assets -156,084 -178,849Expenditure for the purchase of other financial assets 0 -5,244,661Income from the disposal of other financial assets 3,296,036 3,668,426Interest/dividend receipts 43,056 90,003Interest paid -8,519 0Cash flow from investment activities (2) 3,174,489 1,665,163

financing activitiesDividends paid -14,395,176 -2,823,363Income from current borrowings 3,000,000 0Loans disbursed -3,500,000 0Repayment of loans granted 3,500,000 0Cash flow from financing activities (3) -11,395,176 -2,823,363

Changes in cash and cash equivalents – total of (1) to (3) -5,430,463 -2,331,944Cash and cash equivalents at the start of the period 8,859,080 15,117,296Cash and cash equivalents and the end of the period 3,428,617 12,785,352

20 Q U A R TA L S B E R I C h T 01. 2013

ATOSS customer feldschlösschen (Switzerland)

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 30.06.2013EUR 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 3,011,707 3,011,707

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 0 110,963 0 110,963Other income 0 0 0 110,963 0 110,963Status 30.06.2012 3,976,568 -661,338 0 316,200 17,774,153 21,405,583

Status 01.01.2013 3,976,568 -661,338 0 -148,944 20,522,139 23,688,425Net income 0 0 0 0 425,851 425,851Dividends 0 0 0 0 -14,395,176 -14,395,176Other changes in equity 0 0 0 164,197 0 164,197Other income 0 0 0 164,197 0 164,197Status 30.06.2013 3,976,568 -661,338 0 15,253 6,552,814 9,883,297

One share represents 1 euro of subscribed capital.

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 statement of changes in consolidated 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 undergone an auditors’ inspection or statutory audit.

2. Reporting period The present interim report was prepared to June 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 June 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 statement of changes in consolidated 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. SalesThe company’s sales were composed as follows:

The geographic breakdown of sales was as follows:

7. Personnel expensesThe consolidated personnel costs to June 30, 2013 were composed as follows:

8. Other operating income and expensesIn the first six months of the current financial year the company recorded other operating income in the amount of EUR 12,226 (previous year: EUR 48,879). This income essentially resulted from the liquidation of reserves.

The other operating expenses amounting to EUR 23,208 (previous year: EUR 29,231) essentially related to exchange rate losses.

EUR 01.01.2013 - 30.06.2013

01.01.2012 - 30.06.2012

Software licenses 3,794,399 3,400,980Software maintenance 7,065,982 6,472,568Total software 10,860,381 9,873,548Consulting 4,421,522 4,485,692Hardware 1,461,670 1,211,700Others 787,219 702,354Total sales 17,530,792 16,273,294

EUR 01.01.2013 - 30.06.2013

01.01.2012 - 30.06.2012

Germany 16,232,408 14,578,725Austria 865,955 816,355Switzerland 310,086 389,747German-speaking regions in total 17,408,449 15,784,827Other countries 122,343 488,467Total sales 17,530,792 16,273,294

EUR 01.01.2013 - 30.06.2013

01.01.2012 - 30.06.2012

Wages and salaries 6,927,866 6,731,709Social security contributions and expenditure on retirement pensions and welfare 1,401,273 1,333,623Total personnel costs 8,329,139 8,065,332


9. financial investment income and expensesIn the first six months of the current financial year the company recorded income in the amount of EUR 424,548 (previous year: EUR 659,744) from financial investments. This essen-tially comprised income from the sale of financial assets in the amount of EUR 381,491 (previous year: EUR 334,823), interest income in the amount of EUR 25,704 (previous year: EUR 90,003) and dividends received in the amount of EUR 17,353 (previous year: EUR 99,972).

The company also recorded expenses amounting as of June 30, 2013 to EUR 4,251,286 (previous year: EUR 223,516). These expenses essentially comprised the valuation allowance against the company’s gold holdings in the amount of EUR 2,099,790 (previous year: EUR 0), losses on the disposal of gold in the amount of EUR 1,876,960 (previous year: EUR 0), the writedown on a put option in the amount of EUR 152,722 (previous year: EUR 0), interest expenditure in connection with pension provisions in the amount of EUR 56,918 (previous year: EUR 69,180), losses on the disposal of financial assets (equities) in the amount of EUR 56,377 (previous year: EUR 0) and interest on current financial liabilities in the amount of EUR 8,519 (previous year: EUR 0).

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

The company anticipates that the valuation allowance against its gold holdings will be per-manent and has taken this into account accordingly in calculating its tax position at the end of the first half-year.

The current tax expense formed as of december 31, 2012 in association with the reduction in value of the gold holdings and recognized in equity in the amount of EUR 229,217 was recognized in profit and loss 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 425,851 by the weighted average number of shares outstanding. From January 1 to June 30, 2013 there were an average of 3,976,568 shares in circulation. Consequently, earnings per share for this period amounted to EUR 0.11, in comparison with EUR 0.76 in the first six months of the preceding year.

EUR 01.01.2013 - 30.06.2013

01.01.2012 - 30.06.2012

Pre-tax earnings (EBT) 429,342 4,472,892Expected tax charge (2013: 32.60%, 2012: 32.60%) -139,966 -1,458,163Non-deductible operating expenses -13,583 -6,181Issues pursuant to section 8b of the German Corporation Tax Act (KStG) 105,437 -50,313Differences in tax rates at consolidated companies 44,621 53,472actual Group tax charge -3,491 -1,461,185


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 represents a software solution for time and attendance management and workforce scheduling catering to 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 June 30, 2013 the company had 280 employees (previous year: 266).

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 June 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 - 30.06.2013

01.01.2012 - 30.06.2012

Sales ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 15,983,725 15,002,087ATOSS Time Control (ATC) 1,547,067 1,271,207Total sales 17,530,792 16,273,294

Operating result (EBiT)ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 3,827,131 3,821,318ATOSS Time Control (ATC) 428,949 215,346Operating result (EBiT) in total 4,256,080 4,036,664

01.01.2013 - 30.06.2013

01.01.2012 - 30.06.2012

Development 124 118Consulting 71 69Sales and marketing 43 39Administration 42 40Total 280 266

30.06.2013 31.03.2013 31.12.2012 30.09.2012 30.06.2012Andreas 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 Chief Executive OfficerChristof Leiber Member of the Management Board

Peter Kirn ChairmanRolf Baron Vielhauer von Hohenhau Deputy ChairmanKlaus Bauer Member


17. Notifiable participating interestsIn the first six months of financial year 2013 the company received the following notification 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% of the voting rights and on that day amounted to 4.96% (equivalent to 197,250 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 six months of the financial year 2013 the value of these services amounted to EUR 1,872 (previous year: EUR 2,236). The company is satisfied that the terms agreed for these transactions are standard market terms.

19. Events after the closing dateThe transaction entered into on June 27, 2013 for the sale of 161 gold bars (purchase price: EUR 6.7 million) was completed on July 3, with the proceeds of the sale amounting to EUR 4.9 million. The resulting effects on earnings have been allowed for as of June 30, 2013.

In addition on July 15, 2013 the company also repaid the sum of EUR 3.0 million in liabilities resulting from a bank loan.

There have been no further reportable events of particular significance since June 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, August 12, 2013

Andreas F.J. Obereder Christof LeiberChief Executive Officer 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

Financial calendar

21.10.2013 Press release announcing the 9-monthly statements

11.-12.11.2013 Equity Forum, Frankfurt/Main (11.11 – 13.11.2013)

15.11.2013 Publication of the 9-monthly financial statements


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

Financial calendar

RESPONSIBILIT Y LIES WITh

ATOSS Software AG Am Moosfeld 3 81829 Munich

Germany T +49 89 4 27 71 0 F +49 89 4 27 71 100 www.atoss.com

INvESTOR REL ATIONS

ATOSS Software AG Investor Relations Christof Leiber T +49 89 4 27 71 265 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 25 39 15 562

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 70

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

atoss.com

Documents

Q2 - atoss.com · Q2 .13. ATOSS Quarterly Report 02.2013 ATOSS customer HUK-COBURG. 3 ATOSS Quarterly Report 02.2013. 4 QUARTERLY REPORT 02. 2013 Andreas F.J. Obereder and Christof