contents
Interim Status Report 2 2009/2010
04 General
05 GroupBusinessActivityandStructure
05 MarketandCompetitiveEnvironment
06 BusinessDevelopmentandGroupSituation
10 RisksandOpportunities
11 MajorEventsaftertheBalanceSheetDate
11 Forecast
Consolidated Quarterly Report 2 2009/2010
12 ConsolidatedBalanceSheets
13 ConsolidatedStatementsofOperations
13 ConsolidatedStatementsofComprehensiveIncome
14 ConsolidatedStatementsofShareholders’Equity
16 ConsolidatedStatementsofCashFlows
17 Notes
25 Events&ContactInformation
Key Figures of the SinnerSchrader Group
in€000s,€,andnumber Q2
2009/2010
Q2
2008/20091)
Change H1
2009/2010
H1
2008/20091)
Change
Revenues €000s 6,347 6,640 -4% 13,481 13,949 -3%
Totalrevenues,net €000s 5,332 4,813 +11% 11,267 10,393 +8%
Grossprofit €000s 1,600 1,303 +23% 3,676 3,071 +20%
EBITDA €000s 341 -35 +1067% 1,062 663 +60%
EBITA €000s 206 -163 +227% 802 398 +101%
Netincome €000s 32 -367 +109% 414 48 +758%
Netincomeattributabletothe
shareholdersofSinnerSchraderAG €000s 32 71 -55% 414 486 -15%
Netincomepershare € 0.00 0.01 -52% 0.04 0.04 -13%
Cashflowsfromoperatingactivities €000s 1,094 1,253 -13% 2,279 1,035 +120%
Employees,full-timeequivalents number 268 249 +8% 263 232 +13%
28.02.2010 30.11.2009 Change 28.02.2010 31.08.2009 Change
Cashandcashequivalents €000s 8,971 9,068 -1% 8,971 7,988 +12%
Employees,endofperiod number 294 280 +5% 294 279 +5%
1)AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe2008/2009financialyear
EMPLOYEE StRuCtuRE bY SEgMEnt
INAvERAGENuMBEROFFull-TIMEEMplOyEESFORH12009/2010COMpAREDTOH12008/2009
prev.year=H12008/2009
23.524.6
Holding
3.31.0
InteractiveCommerce
215.9193.0
InteractiveMarketing
20.013.0
InteractiveMedia
EMPLOYEE StRuCtuRE bY AREAS Of ExPERtISE
INAvERAGENuMBEROFFull-TIMEEMplOyEESFORH12009/2010
Administration
31.5(prev.year:31.2)
Technology(incl.operations)
121.1(prev.year:104.3)
Creation
34.1(prev.year:36.6)
Consultancy(incl.media)
76.0(prev.year:59.5)
262.7(prev.year:231.6)
DEvELOPMEnt Of OPERAtIng COStS AnD EbItA
IN%OFNETREvENuES
7.1 % 3.8 %
1.8 % 1.2 %
15.6 % 18.1 %
8.2 % 6.4 %
67.3 %
EBITA
R&Dexpenses
Generalandadminis-trativeexpenses
Sellingandmarketingexpenses
Revenuecosts70.5 %
H108/09 H109/10
RECOnCILIAtIOn Of EbItA tO nEt InCOME
IN€000SFORH12009/2010
802 –323 52 –117 414
EBITA Amortisationofintangibleassetsfrom
acquisitions
Financialincome
Taxesonincome
Netincome
DEvELOPMEnt Of nEt REvEnuES AnD nEt REvEnuE MARgIn
IN€000SAND%
10,393 7.4 % 1)
3.8 %
10,543 15.6 % 1)
9.9 %
11,267 13.5 % 1)
7.1 %
8,4769.7 %
H107/08 H207/08 H108/09 H208/09 H109/10
9,87115.0 %
1)Beforecosts/start-uplossesforexpansionofserviceportfolio
nEt REvEnuES bY SEgMEnt
IN€000SFORH12009/2010COMpAREDTOH12008/2009
–289
Holding/Consolidation
229
InteractiveCommerce
10,5309,636
InteractiveMarketing
797757
InteractiveMedia
nEt REvEnuES bY SECtOR
IN%FORH12009/2010
Retail&ConsumerGoods
42.4 (prev.year:31.6)
FinancialServices
22.6 (prev.year:26.5)
Media&Entertainment
2.1 (prev.year:4.2)Transport&Tourism
12.2 (prev.year:15.0)
Telecommunications&Technology
17.1 (prev.year:19.4)
prev.year=2008/2009financialyear
Other
3.6 (prev.year:3.3)
4 INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
interim Status report as of 28 February 2010
1 general
ThisInterimStatusReportoftheSinnerSchrader
Group(“SinnerSchrader”or“Group”)asof28Febru-
ary2010representsthedevelopmentoftheincome,
financial,andassetsstatusofthegroupwhichisman-
agedbySinnerSchraderAktiengesellschaft(“Sinner-
SchraderAG”or“AG”)inthefirsthalfandthesecond
quarterofthe2009/2010financialyearfrom1Sep-
tember2009and1December2009,respectively,to
28February2010.Itdealswiththemajorrisksand
opportunitiesandtheprobablefuturedevelopmentof
businessintheremainingfinancialyear.
Theconsolidatedfinancialstatementsonwhichthis
statusreportisbasedweredrawnupaccordingtothe
InternationalFinancialReportingStandards(“IFRS”).
TheInterimStatusReport,particularlySection7,
containsstatementsandinformationaimedatthe
future.Suchforward-lookingstatementsarebased
oncurrentknowledge,estimates,andassumptions
andthereforeentailanumberofrisksanduncertain-
ties.Avarietyoffactors,manyofwhichareoutside
SinnerSchrader’ssphereofinfluence,haveanimpact
onbusinessdevelopmentandresults.Thesefactors
meanthattheactualfuturebusinessdevelopmentof
SinnerSchraderandtheactualresultsachievedmay
differsignificantlyfromtheexplicitorimplicitinforma-
tionintheforward-lookingstatements.
Thisquarterlyfinancialreportshouldbereadincon-
junctionwiththeConsolidatedFinancialStatementsof
SinnerSchraderAG.
5INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
2 group business Activity and Structure
TheSinnerSchraderGroupisaninteractiveagency
whichofferscompaniesacomprehensiverangeof
servicesfortheuseofinteractivetechnologiesto
optimiseandfurtherdeveloptheirbusiness.The
emphasisisontheuseoftheInternetforthesaleof
goodsandservices(e-commerce),formarketingand
communication,andfortheacquisitionandretention
ofcustomers.
SinnerSchraderisoneofthebiggestindependent
interactiveagencygroupsinGermanyandprovides
itsservicesfromofficesinHamburgandFrankfurtam
Main.SinnerSchradermainlyworksforcompanies
basedinGermany,butalsoincludescompaniesfrom
Denmark,theuK,France,andMoroccoamongits
clients.
ThecompositionoftheGrouphasnotchanged
againstthestatusasof31August2009.Inaddition
toSinnerSchraderAG,theGroupcomprisesSinner-
SchraderDeutschlandGmbH,spot-mediaAGand
itssubsidiaryspot-mediaconsultingGmbH,the
newtentionGroup,comprisingnewtentiontechnolo-
giesGmbHandnewtentionservicesGmbH,aswellas
nextcommerceGmbH.Furthermore,theoperatively
inactivecompaniesSinnerSchraderuKltd.inlondon
andSinnerSchraderBeneluxBvinRotterdamarealso
partoftheconsolidationgroup.
Inthefirstquarterofthepreviousyear,thenewtention
GroupandnextcommerceGmbHwerenotyetpartof
theSinnerSchraderGroup.ThenewtentionGroupwas
takenoverinthesecondandthirdfinancialquartersof
the2008/2009financialyear;nextcommerceGmbH
wasfoundedinMay2009.
TheSinnerSchraderGroupstructuresitsbusiness
activityinthesegmentsInteractiveMarketing,Inter-
activeMedia,andInteractiveCommerce.Servicesin
theInteractiveMarketingsegmentareprovidedby
Sinner-SchraderDeutschlandGmbHandthespot-
mediaGroup.TheonlinemediabusinessofSinner-
SchraderDeutschlandGmbHandthenewtention
GrouparebroughttogetherintheInteractiveMedia
segment.TheInteractiveCommercesegmentis
coveredbynextcommerceGmbH.
3 Market and Competitive Environment
InthemonthsofSinnerSchrader’ssecondfinancial
quartertherewerenosignalswithrespecttothe
developmentoftheeconomyasawholeandthesec-
torspecificallythatthepreviousexpectationsofthe
marketandcompetitiveenvironmentinwhichSinner-
Schraderoperateshavechangedforthe2009/2010
financialyear.
TheforecastsforthedevelopmentoftheGerman
economyin2010havestabilisedatgrowthexpect-
ationsofbetween1.5%and2.0%fortheprice-adjusted
grossdomesticproduct.Inprinciple,thisexpectationis
agoodbasisforanincreasedwillingnessbycompanies
toinvestinthedevelopmentoftheirbusinesses.
Butthereiswidespreaduncertaintyabouttheopen
questionastohowtomanagethenationaldebt
amassedduringthecrisisandarisingfromthefear
thatthehighindebtednessofindividualcountriesis
alreadypresagingthenextfinancialcrisis.Addedto
thisareconcernsaboutapossibleclampdownon
creditcausedbychangesinthebankinglandscape
andmorestringentregulationofthebanksandabout
aresultantboomandbustonthecapitalmarkets.
Negativesurprisescanthereforenotbecompletely
ruledoutinthemonthsaheadeither.
6 INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
However,theengineofdevelopmentatSinnerSchrader
ismuchlessgeneraleconomictrendsthanthedy-
namicsoftheprocessofchangeinmarketingtowards
theInternetastheleadmediumforallmarketing
activities.In2009thisprocessofchangeensured
thatSinnerSchraderandotherinteractiveagencies
experiencedtheimpactofthefinancialandeconomic
crisisonlytoacomparativelyslightdegree.Growth
forecastsof14%forthegrossvolumeoftheGerman
onlineadvertisingmarket(OvKOnlineReport2010,
No.1)areanindicationthatthisprocesswillcontinue
apacein2010.Numerouscontactswithcustomers
alsogivetheimpressionthatmanycompanieswill
investinexpandingtheironlinemarketingplatforms
andstructuresinthecurrentcalendaryear.
4
Thepositiveoverallimageisunderpinnedbyanoper-
atingcashflowof€2.3million;acomparativelyhigh
levelofdepositpaymentswerereceivedtocontribute
tothis.
4.1 Revenues, Incoming Orders, and
Price Development
Inthesecondfinancialquarterof2009/2010,Sinner-
Schraderearnednetrevenuesof€5.3millionand
achievedgrowthof10.8%incomparisontothe
secondquarterofthepreviousyear.Thegrowthdy-
namicshavethusincreasedfurther,asplanned,after
agrowthrateof6.4%wasachievedinthefirstquarter
of2009/2010.Asinpreviousyears,netrevenueswere
10.1%belowthoseearnedinthefirstquarterdue
tofarfeweravailableworkinghoursbecauseofthe
publicholidaysandannualleaveatChristmasandthe
Newyear.
Withnetrevenuesof€4.9million,theshareofrev-
enuesfromtraditionalbusinessinprojectandoperat-
ingservices,whichisoperatedunderthetwobrands
SinnerSchraderandspot-media,wasover90%.
Revenuesinthissegmentroseby10.5%inthequar-
tercoveredbythereport.Incomingordersdeveloped
evenmoredynamicallyandexceededthevalueofthe
samequarterofthepreviousyearbyjustunder15%,
mainlyduetostrongdemandforconsultancyand
implementationexpertiseinthefieldofe-commerce.
IntheInteractiveMediasegment,whereSinner-
Schraderoffersperformancemediaandadserving
serviceswiththebrandsmediabyandnewtention,
quarterlyrevenuesinthesecondfinancialquarter
were€0.4million.Thisrepresentedariseoverthe
previousyearof12.9%whichwasprimarilycaused
bytheslowbutsteadyestablishmentofbusinessat
newtention.
business Development and group Situation
Inagenerallybenignbusinessenvironment,Sinner-
Schradercontinueditspositivebusinessdevelopment
inthesecondfinancialquarterof2009/2010:Itsnet
revenuesof€5.3millionwerearound11%higher
thanthoseofthepreviousyear;at€0.2million,the
EBITAwasjustunder€0.4millionmorethanthatof
thepreviousyear.Duetotheusualseasonal
factors,thevaluesoftheprecedingfirstquarter
werenotachieved.
unlikeinthepreviousyear,SinnerSchraderisclosing
thefirsthalfofthefinancialyearwithrevenuegrowth
ofagood8%andadoublingoftheoperatingresult.
Thegooddevelopmentwasdrivenbybusinessinthe
InteractiveMarketingsegment,whereSinnerSchrader
achievedrevenuegrowthof9%.Incomingorders
inthissegmentactuallyexceededthevaluesofthe
previousyearbyjustunder16%.
ThegoodprofitdevelopmentintheInteractiveMarket-
ingsegmentmeantthatthecontinuedstart-uplosses
inthebusinessfieldsofadservingande-commerce
outsourcing,whichwerelaunchedinthe2008/2009
financialyear,couldbecovered;inthefirsthalfofthe
yeartheytotalled€0.7million.
7INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
TheInteractiveCommercesegmentcontributed
€0.1milliontothetotalrevenuesinthequarterof
thereport.Oneyearagothissegmentwasstillbeing
established:nextcommerceGmbHstarteditsbusi-
nessactivitiesinJune2009andsuccessfullylaunched
thefirstonlineshopfortheOlsenfashionbrandin
mid-October.
Accumulatedforthefirsthalfof2009/2010,thenet
revenuesoftheSinnerSchraderGroupamounted
to€11.3million,aftertotalling€10.4millionand
€10.5millioninthefirstandsecondhalfof2008/2009,
respectively.Incomparisontothesameperiodinthe
previousyear,thisisagrowthrateof8.4%.
TheInteractiveMarketing,InteractiveMedia,and
InteractiveCommercesegmentscontributed€10.5
million,€0.8million,and€0.2million,respectively,to
thenetrevenuesinthefirsthalfof2009/2010;€0.3
millionhadtobeeliminatedforbusinesswithinthe
Group.
IntheInteractiveMarketingsegment,thegrowthover
thepreviousyearwas9.3%.Givenoverallstable
businesswithexistingcustomers,thisgrowthimpetus
wastheresultofapleasingexpansionofthecustomer
base,whichwasmoredynamicthaninpreviousyears.
Forexample,theSinnerSchraderagencywonanorder
fromtheOTTOGrouptodesignandimplementthe
newonlineshoeshopmirapodo.deandalsoreceived
firstordersfromREWE,HeineversandandRadio
Hamburg.spot-mediaAGwonthecontracttomanage
theonlineactivitiesoftheHamburgduty-freeshop
operatorGebr.Heinemann.Theproportionofbusi-
nesswithcustomerswithwhomtherehadnotbeena
businessrelationshipinthecomparableperiodofthe
previousyearthusaccountedforalmost12%ofthe
Group’snetrevenues.Oneyearago,theratewasonly
agood7%.
TheInteractiveMediasegmentmaintainedrelatively
constantnetrevenuesinthefirsthalfof2009/2010
incomparisontothepreviousyear.Therevenues
fromtheadservingbusinessofthenewtentionGroup
balancedoutdeclinesintheperformancemedia
businessresultingfromcutsinthegrossadvertising
budgetofasinglecustomercausedbytheeconomic
climate.Asaconsequenceofthesecuts,theGroup’s
grossrevenuesinthefirsthalfofthefinancialyear
werealsoagood3%belowthevalueoftheprevious
year.Attheendofthehalf-yearcoveredbythereport,
ahigh-potentialnewcustomerwasacquiredinthe
performancemediabusiness,forwhomSinner-
Schraderstartedtoworkatthestartofthesecond
halfoftheyear.
TherevenuesintheInteractiveCommercesegment
couldstillnotbecomparedwithanyrevenuesfrom
thefirsthalfofthepreviousyear.Here,too,business
withnewcustomersbecamemoredynamicattheend
ofthefirsthalfof2009/2010,withtheresultthatthe
acquisitionofasecondcustomerprojectinthethird
quarterof2009/2010isnotunlikely.
Inthedistributionbysectors,agood42%ofthenet
revenuesinthefirsthalfof2009/2010wasaccounted
forbycustomersfromtheRetail&ConsumerGoods
sector,justunder23%byFinancialServicescustom-
ers,17%bytheTelecommunications&Technology
sector,and12%bycompaniesintheTransport&
Tourismsector.Theremaining6%isspreadacross
othersectors,includingMedia&Entertainmentand
Health&Education.Thismeansthattheproportionof
revenuesfromtheRetail&ConsumerGoodssector
continuedtorise;thissectorisconcentratingmost
consistentlyonexpandingitsonlineactivities.
Thetenbiggestcustomersaccountforjustunder
83%oftherevenues,whichisslightlybelowthe84%
ofthewholepreviousyearbutisonceagainabovethe
valueof79%inthefirstquarter.Inthecomparable
halfof2008/2009,however,thesharewasover87%.
Thebroadeningofthecustomerbaseisthustaking
effectwithrespecttoaslightreductionindependency
onthetenbiggestcustomers.
4.2 Operating Result
Inthesecondquarterofthe2009/2010financial
year,SinnerSchraderachievedanoperatingresult
(EBITA)of€206,000,whichwas€368,000higher
thantheoperatingresultinthecomparablequarterof
thepreviousyear.Therevenuegrowthof€519,000
comparedtothepreviousyearwasmostlyreflectedin
theresult.Thiswasaccompaniedbyanimprovement
of3percentagepointsinthegrossmargin,whichrose
to30%.
8 INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
TheEBITAforthequarterunderreviewincludesstart-
upcostsofaround€400,000fortheadservingand
e-commerceoutsourcingactivitieswhichbeganinthe
previousyear;inthesecondquarteroftheprevious
year,whichwasthefirsttoseesignificantcostsfor
theestablishmentandexpansionofthisbusiness,the
burdenontheoperatingresultwasaround€350,000.
Whiletheadvancepaymentsinthepreviousyearwere
largelyreportedasadministrativecosts,thestart-up
costsinthecurrent2009/2010financialyearmainly
affectthegrossprofitfollowingthelaunchortakeover
ofrevenueactivity.Theproportionofnetrevenues
accountedforbyadministrativeexpensestherefore
declinedagainto15.8%inthequarterofthereport;
inthepreviousyear,itwas20.1%.
Marketingexpensesmadeuparelativelyhigh8.6%
inthequarterunderreview.Thiscanbeattributednot
leasttotheadvertisingcostsarisingfromtheoperation
ofonlineshopsinthee-commerceoutsourcingbusi-
ness,someofwhicharetheresponsibilityofSinner-
Schrader.
Inthesecondfinancialquarter,SinnerSchraderagain
spentaround€100,000onresearchanddevelopment.
Themajorityofthiswenttothefurtherdevelopmentof
then7adservingsoftware.
Acomparisonwiththeprecedingfirstquarter,which
sawanEBITAof€596,000,revealsthattheseasonal
decreaseinnetrevenuesofaround€600,000was
partiallycompensatedforthroughtheuseoffewer
freelancers,lowerpersonnelcostsonaccountofholi-
days,andlowermarketingandadministrativecosts.
The€400,000decreaseintheresultisalsoreflected
inthegrossmargin,whichis5percentagepoints
lower.Thestart-uplossesinthenewbusinessfields
werearound€100,000higherinthesecondquarter
thaninthefirstlargelyonaccountofseasonallylower
revenuesintheadservingbusinessinJanuaryand
February.
Forthefirsthalfofthe2009/2010financialyear,the
accumulatedoperatingresultwas€802,000.The
previousyear’svalueof€398,000wasthereforemore
thandoubled,eventhoughinthehalf-yearunder
review,theexpensesof€716,000fornewbusiness
activitieswerenearlytwiceashighasinthesame
periodofthepreviousyear,whichsawstart-upcosts
of€367,000.
Thispositivedevelopmentisthankslargelytothe
welcomedevelopmentofearningsfromestablished
businessintheInteractiveMarketingsegment.The
segmentresultinthefirsthalfof2008/2009was
raisedbynearly130%inthehalf-yearunderreview
from€727,000to€1,649,000.TheriseintheEBITA
wasalmostpreciselyequivalenttotheincreasein
netrevenues.Thisreflectsaconsiderablemarginim-
provementinthebusinessofthissegment:TheEBITA
marginreached15.7%inthehalf-yearofthereport,
comparedto7.5%inthepreviousyear.
Thetwootheroperatingsegments,InteractiveMedia
andInteractiveCommerce,contributedanegative
€–149,000and€–461,000,respectively,tothe
Group’soperatingresultonaccountofthecosts
incurredforestablishingtheadservingbusinessand
launchingthee-commerceoutsourcingbusiness.In
theInteractiveMediasegment,thestart-upexpenses
fortheadservingbusinesscouldnotbefullycompen-
satedforbythemediabusinessastheywereinthe
firstsixmonthsofthepreviousyear.Increasedsales
activitiesandfallsinmargins,whichcouldnotyetbe
balancedoutbyagrowthinvolume,ledtoanotice-
ablereductioninthepositiveresultsfromthemedia
businesscomparedtotheyearbefore.
ThetotalEBITAmarginoftheSinnerSchraderGroup
improvedfrom3.8%inthefirstsixmonthsofthe
previousyearto7.1%inthehalf-yearunderreview.
Despitethestart-upeffects,thegrossmarginroseby
around3percentagepointsinthehalf-year,reaching
32.6%.Thenetrevenueproportionofthemarketing
costsrosesignificantlyto8.2%,comparedto6.4%
inthepreviousyear.Intensifiedsalesactivitiesinthe
mediabusinessandthefirstadvertisingcostsfrom
thee-commerceoutsourcingbusinessmadeasignifi-
cantcontributiontothisdevelopment.Theadministra-
tivecostsnormalisedinthehalf-yearofthereport,
makingup15.6%ofnetrevenues,afterreaching
18.1%inthepreviousyearduetopreparationsforthe
establishmentofnewbusinessfields.Theproportion
ofresearchanddevelopmentexpenseswas1.8%.
Theincreaseoverthepreviousyear’svalueof1.2%
canbeattributedsolelytothefurtherdevelopment
costsfortheadservingsoftwarewhichwereincurred
fortheentireperiod.
9INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
4.3 Consolidated Income
EBITAinthesecondquarterof2009/2010covered
thedepreciationsonintangibleassetsfromacquisi-
tions,particularlythen7software,tothetotalamount
of€161,000.Togetherwiththefinancialresultof
€29,000andafterdeductionofincometaxesinthe
amountof€41,000,theconsolidatedincomeinthe
quarterofthereportwas€31,000.Consolidated
incomeof€–367,000wasreportedinthecomparable
quarterofthepreviousyear;theriseintheoperating
resultisthereforereflectedinacomparableamountin
theconsolidatedincome.
Inthepastyear,advancepaymentsfortheset-upof
theadservingbusiness,whichbeganinthesecond
quarterof2008/2009,werestillattributedtothesell-
ersofnewtentiontechnologiesGmbHinthatquarter
andinthesubsequentthirdquarterof2008/2009.As
aresult,theconsolidatedincometobeallocatedto
theshareholdersofSinnerSchraderAGwas€71,000
inthecomparableperiodofthepreviousyearand
washigherthantheconsolidatedincome.Asthe
advancepaymentsfortheadservingbusinessareto
beassignedtoSinnerSchradersincethefulltake-over
ofnewtentiontechnologiesGmbHattheendofMay
2009,theincometobeallocatedtoSinnerSchrader
shareholdersinthequarterofthereportcorresponded
totheconsolidatedincome.
Inthefirsthalfofthefinancialyear,SinnerSchrader
achievedaconsolidatedincomeof€414,000or
€0.04persharewhichistobeallocatedentirelyto
SinnerSchradershareholders.Thecomparablevalues
fromthepreviousyearwere€48,000and€486,000
fortheconsolidatedincomeandtheproportionwhich
wasattributedtoSinnerSchradershareholders.
Forthefirsthalf-year,too,theriseintheresultcom-
paredtothepreviousyearintheoperativespherewas
feltalmostentirelyontheleveloftheconsolidated
income.Higherdepreciationsonintangibleassets
fromacquisitions(around€–50,000)andlossesin
thefinancialresultonaccountofasignificantlylower
averageinterestratecomparedtothepreviousyear
(around€–90,000)werebalancedoutbyalighter
incometaxburden(€+102,000).Thecomparatively
lowtaxrateinthehalf-yearofthereportisconnected
withthefirst-timeinclusionofnextcommerceGmbH
inthedomesticgroupofcompaniesofSinnerSchrader
AGfollowingtheentryintoforceoftheprofitandloss
transferagreementconcludedbetweenthecompanies.
4.4 Cash flows
Asinthefirstquarter,thegoodoperativeperformance
inthesecondquarterof2009/2010,considering
seasonaldevelopments,wasemphasisedbystrong
operatingcashflowstotheamountofaround€1.1
million.
Forthehalf-yearofthereport,thecashflowsfromop-
eratingactivitiesamountedtoawelcome€2.3million.
Thiswas€1.2millionmorethaninthefirsthalfofthe
previousyear,anditevensurpassesthevalueforthe
entire2008/2009financialyear.Inadditiontothecon-
solidatedincomeadjustedfornon-cashtransactions
ofatotalof€0.9million,itwasthereleaseoffundsin
theitemsarisingfromservicesrenderedtocustomers
intheamountofnearly€1.2millionwhichcontributed
abovealltothepositiveoperatingcashflows.
Theuseoffundsforinvestmentsandfinancing–
adjustedforinvestmentsrelatingtotheinvestment
oftheliquidityreserve–totallingaround€1.4million
werefinancedfromtheoperatingcashflowsinthe
half-yearunderreview.Thelargestindividualitemwas
thedividendpaymentofaround€0.9millionmade
on17December2009.Nearly€0.3millionwaspaid
asthesecondearn-outinstalmenttothesellersof
spot-mediaAG.Another€0.2millionwasusedfor
investmentsparticularlyinIThardwareandsoftware
aswellasofficeandbusinessequipment.
Theremainingportionoftheoperatingcashflows
ofagood€0.9millionincreasedtheliquidfunds
andsecurities,whichcorrespondinglyrosetonearly
€9.0millionfromthelevelon31August2009to
28February2010.
10 INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
4.6 Employees
Duetowelcomebusinessgrowthandpositiveexpect-
ationsforfuturedevelopment,SinnerSchraderfurther
expandeditsemployeebaseinthesecondquarterof
2009/2010.On28February2010,theSinnerSchrader
Grouphad294employees.Thiswas15employees
morethanthereweresixmonthsbeforeon31August
2009.Thenumberofemployeesgrewby20compared
to28February2009.
Therewere244employeesintheInteractiveMarket-
ingsegment,20employeesintheInteractiveMedia
segment,and4employeesintheInteractiveCommerce
segment.26employeeswereaccountedforbythe
holdingcompany.Ofthe294employees,17werein
training,and37workedasstudentsorwereinterns.
Theaveragenumberoffull-timeemployeesinthefirst
half-yearwas263,whichcorrespondstoacapacity
increaseof31full-timeemployeescomparedtothe
sameperiodinthepreviousyear.Ofthistotalnumber
ofemployees,therewere216full-timeemployeesin
theInteractiveMarketingsegment,20intheInteractive
Mediasegment,and3intheInteractiveCommerce
segment;theremaining24full-timeemployeesworked
inthecross-segmentholdingcompany.Clusteredby
fieldsofcompetence,therewere76full-timeemployees
inconsulting,121intechnology,34increation,and
32inadministration.Comparedtothepreviousyear,
thepersonnelcapacitywasexpandedaboveallin
consultingandtechnology.
5 Risks and Opportunities
AsregardsriskmanagementatSinnerSchraderand
themajorrisksandopportunities,therehavebeenno
majorchangesinthesecondquarterof2009/2010
incomparisontothesituationinthe2008/2009Annual
Report.Noriskshavebeenidentifiedthatcould
threatentheexistenceoftheSinnerSchraderGroup
orSinnerSchraderAG.
4.5 balance Sheets
Comparedto31August2009,thebalancesheettotal
attheendofthefirsthalfofthe2009/2010financial
yearfellasaresultofthedividendpaidinDecember;
itdecreasedbyaround€0.5millionto€19.9million
asof28February2010.Ontheassetsside,the
increaseintheliquidityreserveofaround€1.0million
wascompensatedforbythe€1.1milliondecrease
inoutstandingitemsforservicesrenderedwhichwas
achieveddespitetherevenuegrowth.Inthenon-current
assets,theinvestmentswereconsiderablylowerthan
theperiodicdepreciationssothattheirbookvalueas
of28February2010wasnearly€0.4millionbelowthe
valuepostedon31August2009.
Ontheliabilitiesside,thedecreaseinthebalancesheet
totalofaround€0.5millionwasnearlyequivalentto
thedecreaseinshareholders’equity.Nearlyhalfofthe
dividendintheamountof€0.9millionfromtheprofit
ofthe2008/2009financialyearwasbalancedoutby
theconsolidatedincomeofthefirsthalfoftheyear.
Theshareholders’equitythereforereachedavalue
on28February2010thatwas€0.5millionbelowthat
of31August2009.Asregardsliabilitiesandaccrued
expenses,ashiftfromnon-currenttocurrentaccrued
expensesofaround€0.35millionarose,thoughthe
totalamountremainedconstantcomparedto31August
2009.Inthecurrentliabilities,therewasaclearshift
intheitemforadvancepaymentsreceivedwhich
emphasisestheimprovementinthepositiontowards
customers.
Onaccountofthedecreaseinshareholders’equity
duetothedividendpayment,theequityratefell
from61.6%asof31August2009to60.7%asof
28February2010.
11INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG
6 Major Events after the balance Sheet Date
Afterthebalancesheetdatetherewerenomajor
eventstoreportwhichcouldbeexpectedtohavea
significanteffectontheasset,financialandincome
statusofSinnerSchrader.
7 forecast
Thepositiveimpressionofbusinessdevelopments
fromthefirstquartercontinuedinthesecondquarter
ofthe2009/2010financialyear,eventhoughthesea-
sonalfallinkeybusinessdatawouldinitiallyleadone
tosuspectotherwiseinacomparisonbetweenthe
firstandsecondquarter.
Slightdelaysintheestablishmentofthenewbusiness
fieldsofadservingande-commerceoutsourcinghave
beenbalancedoutbyhigherthanexpecteddynamism
intheInteractiveMarketingsegment.Thegrowthof
justunder16%inincomingordersasof28February
2010incomparisontothepreviousyearroseeven
furtherinMarch2010andisaround18%forthefirst
eightmonthsofthefinancialyear.
Againstthisbackground,SinnerSchraderconfirms
theobjectivesforthe2009/2010financialyearof
increasingnetrevenuebyover14%incomparisonto
thatofthepreviousyearandsignificantlyimproving
theEBITAofthepreviousyear.Achievementofthese
goalswilldependonmakingconsistentuseoftheop-
portunitiesintraditionalbusinessandnotallowingthe
delayinsettingupnewbusinessfieldsgettoobig.
12 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG
Consolidated balance Sheetsasof28February2010and31August2009
Assetsin€ 28.02.2010 31.08.2009
Currentassets:
liquidfunds 2,611,256 3,214,983
Marketablesecurities 6,360,089 4,773,391
Cashandcashequivalents 8,971,345 7,988,374
Accountsreceivable,netofallowancesfordoubtfulaccountsof
€155,924and€155,924at30.11.2009and31.08.2009,respectively 3,505,480 5,202,256
unbilledrevenues 1,429,216 888,816
Othercurrentassetsandprepaidexpenses 181,816 129,694
Totalcurrentassets 14,087,857 14,209,140
Non-currentassets:
Goodwill 3,134,986 3,134,986
Otherintangibleassets 1,494,755 1,703,583
propertyandequipment 978,126 1,028,480
Taxreceivables 164,999 162,047
Othernon-currentassetsandprepaidexpenses – 103,449
Totalnon-currentassets 5,772,866 6,132,545
total assets 19,860,723 20,341,685
Liabilities and shareholders’ equityin€
Currentliabilities:
Tradeaccountspayable 1,722,537 2,020,562
Advancepaymentsreceived 923,809 421,922
Otheraccruedexpenses 1,831,717 1,701,860
Taxliabilities 1,373,381 1,256,734
Othercurrentliabilitiesanddeferredincome 973,463 1,081,201
Totalcurrentliabilities 6,824,907 6,482,279
Non-currentliabilities:
Othernon-currentliabilities 485,766 736,745
Deferredtaxliabilities 487,140 588,598
Totalnon-currentliabilities 972,906 1,325,343
Shareholders’equity:
Commonstock,statedvalue€1,issued:11,542,764and11,542,764,
outstanding:11,272,108and11,272,108at28.02.2010and31.08.2009,respectively 11,542,764 11,542,764
Additionalpaid-incapital 3,599,444 3,599,444
Reservesforshare-basedcompensation 121,648 102,037
Treasurystock,270,656and270,656at30.11.2009and31.08.2009,respectively -418,027 -418,027
Accumulateddeficit -2,822,051 -2,334,226
Changesinshareholders’equitynotaffectingnetincome 39,132 42,071
Totalshareholders’equity 12,062,910 12,534,063
total liabilities and shareholders’ equity 19,860,723 20,341,685
TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.
13CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG
Consolidated Statements of Operationsfrom1September2009to28February2010
in€ Q22009/2010 Q22008/20091) H12009/2010 H12008/20091)
Grossrevenues 6,347,365 6,639,989 13,481,283 13,948,831
Mediacosts -1,015,466 -1,827,156 -2,214,616 -3,555,768
Totalrevenues,net 5,331,899 4,812,833 11,266,667 10,393,063
Costsofrevenues -3,731,717 3,509,349 -7,590,610 -7,322,520
gross profit 1,600,182 1,303,484 3,676,057 3,070,543
Sellingandmarketingexpenses -458,474 -388,697 -924,695 -669,568
Generalandadministrativeexpenses -842,027 -967,864 -1,754,208 -1,882,653
Researchanddevelopmentexpenses -102,225 -115,733 -206,483 -124,486
Amortisationofintangibleassetsfromfirstconsolidation -161,234 -230,917 -322,468 -270,434
Operating income 36,222 -399,727 468,203 123,402
Otherincome/expenses,net 8,454 6,254 11,663 4,328
Financialincome,net 28,789 54,874 51,545 140,447
Income before provision for income tax 73,465 -338,599 531,411 268,177
Incometax -41,467 -28,528 -117,467 -219,940
net income 31,998 -367,127 413,944 48,237
Netincomeattributabletoexternalshareholders – -437,952 – -437,952
NetincomeattributabletotheshareholdersofSinnerSchraderAG 31,998 70,825 413,944 486,189
Netincomepershare(basic) 0.00 0.04 0.04 0.04
Netincomepershare(diluted) 0.00 0.04 0.04 0.04
Weightedaveragesharesoutstanding(basic) 11,272,108 11,425,453 11,272,108 11,425,453
Weightedaveragesharesoutstanding(diluted) 11,272,108 11,425,918 11,281,227 11,425,918
1)AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe2008/2009financialyear
Consolidated Statements of Comprehensive Incomefrom1September2009to28February2010
in€ Q22009/2010 Q22008/2009 H12009/2010 H12008/2009
Netincome 31,998 -367,127 413,944 48,237
Foreigncurrencytranslationadjustment 2 7 6 34
Changeinfairvalueofavailable-for-salefinancialinstruments -4,219 – -4,348 –
Taxesonincomerecogniseddirectlyinshareholders’equity 1,362 – 1,403 –
Changesinshareholders’equitynotaffectingnetincome -2,855 7 -2,939 34
Consolidated comprehensive income 29,143 -367,120 411,005 48,271
Netincomeattributabletoexternalshareholders – -437,952 – -437,952
NetincomeattributabletotheshareholdersofSinnerSchraderAG 29,143 70,832 411,005 486,223
TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.
14 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG
Consolidated Statements of Shareholders’ Equityfrom1September2009to28February2010
in€ Numberofshares
outstanding
Common
stock
Additionalpaid-in
capital
Reservesforshare-
basedcompensation
Treasurystock Retainedearnings/
losses
Changesinshareholders’
equitynotaffectingnet
income
Totalshareholders’equity
withoutexternalinterests
ExternalInterests Totalshareholders’equity
balance at 31.08.2008 11,497,579 11,542,764 3,601,770 70,778 -72,192 -2,197,346 25,071 12,970,845 – 12,970,845
Changesinshareholders’equitynotaffectingnetincome – – – – – – 34 34 – 34
Netincomeattributabletoexternalshareholders – – – – – 486,189 – 486,189 – 486,189
NetincomeattributabletotheshareholdersofSinnerSchraderAG – – – – – – – – -437,952 -437,952
Consolidatedcomprehensiveincome – – – – – 486,189 34 486,223 -437,952 48,271
Disburseddividend – – – – – -1,367,906 – -1,367,906 – -1,367,906
Deferredcompensation – – – 16,893 – – – 16,893 – 16,893
purchaseoftreasurystock -153,383 – – – -242,931 – – -242,931 – -242,931
Changesinbasisofconsolidation – – – – – – – – 876,762 876,762
balance at 28.02.20091) 11,344,196 11,542,764 3,601,770 87,671 -315,123 -3,079,063 25,105 11,863,124 438,810 12,301,934
balance at 31.08.2009 11,272,108 11,542,764 3,599,444 102,037 -418,027 -2,334,226 42,071 12,534,063 – 12,534,063
Changesinshareholders’equitynotaffectingnetincome – – – – – – -2,939 -2,939 – -2,939
Netincome – – – – – 413,944 – 413,944 – 413,944
Consolidatedcomprehensiveincome – – – – – 413,944 -2,939 411,005 – 411,005
Disburseddividend – – – – – -901,769 – -901,769 – -901,769
Deferredcompensation – – – 19,611 – – – 19,611 – 19,611
purchaseoftreasurystock – – – – – – – – – –
balance at 28.02.2010 11,272,108 11,542,764 3,599,444 121,648 -418,027 -2,822,051 39,132 12,062,910 – 12,062,910
1)AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe2008/2009financialyear
TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.
15CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG
Consolidated Statements of Shareholders’ Equityfrom1September2009to28February2010
in€ Numberofshares
outstanding
Common
stock
Additionalpaid-in
capital
Reservesforshare-
basedcompensation
Treasurystock Retainedearnings/
losses
Changesinshareholders’
equitynotaffectingnet
income
Totalshareholders’equity
withoutexternalinterests
ExternalInterests Totalshareholders’equity
balance at 31.08.2008 11,497,579 11,542,764 3,601,770 70,778 -72,192 -2,197,346 25,071 12,970,845 – 12,970,845
Changesinshareholders’equitynotaffectingnetincome – – – – – – 34 34 – 34
Netincomeattributabletoexternalshareholders – – – – – 486,189 – 486,189 – 486,189
NetincomeattributabletotheshareholdersofSinnerSchraderAG – – – – – – – – -437,952 -437,952
Consolidatedcomprehensiveincome – – – – – 486,189 34 486,223 -437,952 48,271
Disburseddividend – – – – – -1,367,906 – -1,367,906 – -1,367,906
Deferredcompensation – – – 16,893 – – – 16,893 – 16,893
purchaseoftreasurystock -153,383 – – – -242,931 – – -242,931 – -242,931
Changesinbasisofconsolidation – – – – – – – – 876,762 876,762
balance at 28.02.20091) 11,344,196 11,542,764 3,601,770 87,671 -315,123 -3,079,063 25,105 11,863,124 438,810 12,301,934
balance at 31.08.2009 11,272,108 11,542,764 3,599,444 102,037 -418,027 -2,334,226 42,071 12,534,063 – 12,534,063
Changesinshareholders’equitynotaffectingnetincome – – – – – – -2,939 -2,939 – -2,939
Netincome – – – – – 413,944 – 413,944 – 413,944
Consolidatedcomprehensiveincome – – – – – 413,944 -2,939 411,005 – 411,005
Disburseddividend – – – – – -901,769 – -901,769 – -901,769
Deferredcompensation – – – 19,611 – – – 19,611 – 19,611
purchaseoftreasurystock – – – – – – – – – –
balance at 28.02.2010 11,272,108 11,542,764 3,599,444 121,648 -418,027 -2,822,051 39,132 12,062,910 – 12,062,910
1)AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe2008/2009financialyear
TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.
16 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG
Consolidated Statements of Cash flowsfrom1September2009to28February2010
in€ H12009/2010 H12008/20091)
Cashflowsfromoperatingactivities:
Netincome 413,944 48,237
Adjustmentstoreconcilenetincometonetcashusedinoperatingactivities:
Amortisationofintangibleassetsfromfirstconsolidation 322,468 270,434
Depreciationofpropertyandequipment 259,746 273,988
Share-basedcompensation 19,611 16,893
Baddebtexpenses – -2,000
Gains/lossesonthedisposaloffixedassets 1,053 702
Deferredtaxprovision -100,055 -79,048
Changesinassetsandliabilities:
Accountsreceivable 1,696,775 664,268
unbilledrevenues -540,400 -227,088
Taxreceivables -2,952 -1,545
Othercurrentassetsandprepaidexpenses -64,319 796,899
Accountspayable,deferredrevenues,andotherliabilities 26,804 -1,113,866
Taxliabilities 116,648 114,601
Otheraccruedexpenses 129,857 272,911
net cash provided by (used in) operating activities 2,279,180 1,035,386
Cashflowsfrominvestingactivities:
Acquisitionofsubsidiarycompaniesandbusinessunitslessacquiredliquidfunds – -660,000
purchasepricepaymentsforacquisitionofsubsidiarycompaniesinpreviousyears -284,400 -270,280
purchaseofpropertyandequipment -199,140 -168,059
proceedsofsaleofequipment 2,396 –
Additionsofmarketablesecurities -1,500,000 –
net cash provided by (used in) investing activities -1,981,144 -1,098,339
Cashflowsfromfinancingactivities:
paymenttoshareholders -901,769 -1,367,906
paymentfortreasurystock – -242,931
net cash provided by (used in) financing activities -901,769 -1,610,837
Neteffectofratechangesoncashandcashequivalents 6 34
net increase/decrease in cash and cash equivalents -603,727 -1,673,756
Cashandcashequivalentsatbeginningofperiod 3,214,983 9,075,148
Cashandcashequivalentsatendofperiod 2,611,256 7,401,392
thereofback-upofbankguarantees 662,880 867,855
Forinformationonly,containedincashflowsfromoperatingactivities:
Interestpaymentsreceived 85,079 80,352
paidinterest -16,446 -1,880
1)AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe2008/2009financialyear
TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.
17CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
notes
1 general foundations
TheConsolidatedFinancialStatementsasof28February2010ofSinnerSchraderAktiengesellschaft(“Sinner-
SchraderAG”or“AG”)anditssubsidiaries(“SinnerSchraderGroup”,“SinnerSchrader”,or“Group”)forthefirst
halfandthesecondquarterofthe2009/2010financialyearfrom1September2009and1December2009,
respectively,to28February2010weredrawnupaccordingtotheInternationalFinancialReportingStandards
(“IFRS”)oftheInternationalAccountingStandardsBoard(“IASB”)inforceonthereportdate,takingaccountof
theinterpretationsoftheInternationalFinancialReportingInterpretationsCommittee(“IFRIC”)andincompliance
withthestandardforinterimfinancialreportsspecifiedbyDRS16oftheGermanAccountingStandards.Itwas
notsubjecttoauditingshouldbereadinconjunctionwiththeConsolidatedFinancialStatementsofSinner-
SchraderAktiengesellschaftasof31August2009.
Theaccounting,valuation,andconsolidationprinciplesoftheQuarterlyReportathandareunchangedfrom
theGroup’sConsolidatedFinancialStatementsasof31August2009.Theyaredisclosedandexplainedinthe
Group’sConsolidatedFinancialStatementsasof31August2009,whicharepublishedinthe2008/2009Annual
Report.
2 Consolidation group
Theconsolidationgroupasof28February2010hadnotchangedincomparisonto31August2009andconsisted
ofSinnerSchraderAGaswellasthefollowingdirectandindirectsubsidiariesoftheAG,eachofwhichisfully
consolidated:
1.SinnerSchraderDeutschlandGmbH,Hamburg,Germany
2.spot-mediaAG,Hamburg,Germany
3.spot-mediaconsultingGmbH,Hamburg,Germany
4.newtentiontechnologiesGmbH,Hamburg,Germany
5.newtentionservicesGmbH,Hamburg,Germany
6.nextcommerceGmbH,Hamburg,Germany
7.SinnerSchraderuKltd.,london,GreatBritain
8.SinnerSchraderBeneluxBv,Rotterdam,theNetherlands
spot-media group
Thespot-mediaGroupwasacquiredinthe2007/2008financialyearandincorporatedintheConsolidatedFinancial
Statementsforthefirsttimeon1February2008.Thepurchasepriceforthetake-overofspot-mediaAG
containsanearn-outcomponentthatistobepaidoutintheyears2009to2012onthebasisoftheoperating
performanceofspot-mediaAGin2008to2011.Thesecondearn-outpaymentintheamountof€284,000was
paidinFebruary2010.Theearn-outliabilityasof28February2010wasestimatedatadiscountedvalueof
€663,000andpostedunderotherliabilities,€332,000ofwhichasnon-currentand€331,00ascurrentliabilities.
18 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
Withinthecontextoftheinitialconsolidation,asegmentofthepurchasepriceintheamountof€382,000
hadtobeallocatedtoexistingcustomers.Theusageperiodofthisintangibleassetwasdeterminedtobe29
months.Duetothelineardepreciationoverthisusageperiod,therewasachargeof€79,000inthefirsthalfof
2009/2010.
Witheffecton1January2009,spot-mediaAGhadonecustomerrelationshipandhadtakenonthestaffdeployed
exclusivelyforthiscustomerrelationshipfromanotheragency.Thistakeoverwasqualifiedasthetakeoverofan
intangibleassetaccordingtotheIFRSrulesandwasthuspostedonthebalancesheetaccordingtoIAS38.The
purchaseprice,whichisdueinthreeannualinstalmentsstartingfromMarch2009andtheamountofwhichis
largelybasedonthebusinesstransactedwiththisclient,wasestimatedtobeatotalof€394,000atthetimeof
thepurchase.Duetotheactualcourseofbusinessinthe2008/2009financialyear,theestimatewasraisedby
€127,000asof1September2009.Thevalueofthecorrespondingassetsandthepurchasepriceliability
rosebythisamount.Thelineardepreciationoverfouryearsresultedinchargesof€68,000inthefirsthalfof
2009/2010.
newtention group
Inthe2008/2009financialyear,SinnerSchraderAGtookoverthenewtentionGroupintwostages.Initialcon-
solidationwiththetransferofcontrolaccordingtoIFRStookeffecton1December2008.Thismeansthatthe
newtentionGroupwaspartoftheconsolidationgroupforonlythreemonthsinthecomparableperiodofthe
2008/2009financialyear.AssumingthatthenewtentioncompanieshadalsobeenpartoftheGroupinthefirst
quarterof2008/2009,thecomparisoninTable1showsthekeyfiguresofthereportingperiodvis-à-visthe
previousyear:
table 1 | Previous year comparative figures pro formain€
H12009/2010 H12008/2009
proforma
Revenues,gross 13,481,283 14,197,553
Totalrevenues,net 11,266,667 10,641,785
EBITA 802,334 114,866
Withinthecontextoftheinitialconsolidation,softwaredevelopedbynewtentiontechnologiesGmbHwas
identifiedasanintangibleassetandvaluedat€1.4million.Theprobableusageperiodofthisintangibleasset
wasdeterminedtobefouryears.Forthefirsthalfof2009/2010thisresultedinachargeof€175,000fromthe
depreciationstointangibleassetsfrominitialconsolidation.Thequarterlyreportingforthe2008/2009financial
yearinassociationwiththetake-overofthenewtentionGroupwasbasedontheprovisionalconsolidationof
newtentionasof31May2009.Whilecompilingandauditingthe2008/2009financialstatements,itwasnotedthat
controlofthenewtentionGrouppassedtoSinnerSchraderwhenitreceivedthepurchaseoptionon1December
2008duetopotentialvotingrights,meaningthatthenewtentionGroupwastobeconsolidatedintheSinner-
SchraderGroupforthefirsttimeatthispoint.Thevaluesdeterminedforthesecondquarterandthefirsthalfof
2008/2009whilecompilingthefinancialstatementshavethusbeenadjustedaccordingly.
next commerce gmbH
On20May2009,SinnerSchraderfoundedthesubsidiarynextcommerceGmbH,withafinancialyearof1Mayof
oneyearto30Aprilofthefollowingyear,deviatingfromthecalendaryear.On3November2009SinnerSchrader
AGandnextcommerceGmbHconcludedaprofit-and-loss-transferandcontrolagreement.TheAnnualGeneral
MeetingofSinnerSchraderAGapprovedthisagreementon16December2009.Theagreementshalltakeeffect
whenitisenteredinthecommercialregisterandwillprobablytakeeffectfortheentireshortfinancialyearof
nextcommerceGmbHfrom20May2009to30April2010.
19CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
3 Segment Reporting
Followingtheexpansionofthebusinessportfoliocompletedinthe2008/2009financialyear,SinnerSchrader
dividesitsbusinessintothreebusinesssegments:InteractiveMarketing,InteractiveMedia,andInteractive
Commerce.TheInteractiveMarketingsegmentisformedbySinnerSchraderDeutschlandGmbH,withoutthe
Mediadivision,aswellasthespot-mediaGroup.TheMediadivisionofSinnerSchraderDeutschlandGmbHand
thenewtentionGrouparebroughttogetherintheInteractiveMediasegment.nextcommerceGmbHformsthe
InteractiveCommercesegment.
AccountingfortheindividualsegmentsfollowstheaccountingprinciplesthatarealsousedintheGroup.Adminis-
trativecostsincurredinSinnerSchraderAGarechargedtotheoperativesegments,wheretheycanbeassigned.
Coststhatcannotbeassignedarenotdistributedtothesegments–thesearelargelycostsfororiginalholding
tasks,suchasinvestorrelationswork.
Table2ashowsthesegmentinformationforthefirsthalfofthe2009/2010financialyear,whereasthecomparative
dataofthepreviousyearcanbeseeninTable2b:
table 2a | Segment information for the first half of 2009/2010in€andnumber
01.09.2009–28.02.2010 Interactive
Marketing
Interactive
Media
Interactive
Commerce
Sum
segments
Holding/
consolidation
Group
Externalrevenues 10,354,398 2,898,163 228,722 13,481,283 – 13,481,283
Internalrevenues 176,162 113,263 – 289,425 -289,425 –
Grossrevenues 10,530,560 3,011,426 228,722 13,770,708 -289,425 13,481,283
Mediacosts – -2,214,616 – -2,214,616 – -2,214,616
Totalrevenues,net 10,530,560 796,810 228,722 11,556,092 -289,425 11,266,667
Segment income (EbItA) 1,648,932 -149,227 -461,187 1,038,518 -236,184 802,334
Employees,endofperiod 244 20 4 268 26 294
table 2b | Segment information for the first half of 2008/2009in€andnumber
01.09.2008–28.02.2009 Interactive
Marketing
Interactive
Media
Interactive
Commerce
Sum
segments
Holding/
consolidation
Group
Externalrevenues 9,635,771 4,313,060 – 13,948,831 – 13,948,831
Internalrevenues – – – – – –
Grossrevenues 9,635,771 4,313,060 – 13,948,831 – 13,948,831
Mediacosts – -3,555,768 – -3,555,768 – -3,555,768
Totalrevenues,net 9,635,771 757,292 – 10,393,063 – 10,393,063
Segment income (EbItA) 727,150 140,547 -100,796 766,901 -368,737 398,164
Employees,endofperiod 221 23 3 247 28 275
20 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
Table2cexplainsthetransferofthetotalofthesegmentearningstothepre-taxearningsintheGroupforthe
periodfrom1September2009to28February2010andforthecomparativeperiodofthepreviousyear:
table 2c | Reconciliation of segment income to income before taxes of the groupin€
H12009/2010 H12008/2009
Segmentincome(EBITA)allreportingsegments 1,038,518 766,901
Centralcostsnotpassedontosegments -236,184 -368,737
EBITAoftheGroup 802,334 398,164
Amortisationofintangibleassetsfromfirstconsolidation -322,468 -270,434
FinancialincomeoftheGroup 51,545 140,447
IncomebeforetaxesoftheGroup 531,411 268,177
AllSinnerSchraderrevenueswereearnedbyGroupcompaniesbasedinGermany.
4 taxes from Income and from Earnings
ThetaxesreportedintheStatementsofOperationsfromincomeandfromearningsaremadeupofcurrentand
deferredcomponents,asshowninTable3:
table 3 | Current and deferred taxes for the periodin€
H12009/2010 H12008/20091)
Current 217,522 242,508
Deferred -100,055 -22,568
total 117,467 219,940
1) AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe
2008/2009financialyear
Inthefirsthalfof2009/2010,currenttaxliabilitiesintheamountofaround€217,000wereincurred(previous
year:€242,000).DeferredtaxeswereformedinaccordancewithIAS12ontemporarydifferencesbetweenthe
bookvaluesintheConsolidatedBalanceSheetandthetaxassumptions.
5 financial Obligations and Contingent Liabilities
Thecontingenciesandotherfinancialobligationsasof28February2010werelargelyunchangedcomparedto
theConsolidatedFinancialStatementsasof31August2009.
21CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
6 Securities
Asof28February2010,thetotalofsecuritieshadrisenby€1,587,000incomparisonto31August2009.It
wasstillmadeupofcorporateloansandbearerbondsofsolventcompaniesandbankswithgoodcreditratings
(investmentgrade)withremainingtermstothebalancesheetdateof1to17months.
Thesecuritiescanbesoldatanytimeandareusedtocovertheshort-termfinanceneeds.Inagreementwith
IAS39,SinnerSchraderhasqualifiedthesesecuritiesas“availableforsale”andthusevaluatedthemattheir
marketvalue.providedthattheyarenottobequalifiedaspermanent,theunrealisedprofitsorlossesaccounted
forbythesesecuritiesasofthebalancesheetdatearedirectlyrecordedintheshareholders’equityintheitem
“Changesinshareholders’equitynotaffectingnetincome”,takingaccountofthetaxesdueonthem.
Table4showsthetotalofsecuritiesandtheunrealisedprofitsandlossesaccountedforbythemduetothe
marketvaluationasof28February2010andthedistributionofthetimetomaturity:
table 4 | Marketable securitiesin€
Term Acquisition
costs
Amortisation
ofacquisition
costs
unrealised
gains
unrealised
losses
Bookvalueas
of28.02.2010
Bookvalueas
of31.08.2009
Marketable
securities lessthan1year 3,000,000 18,685 14,340 -194 3,032,831 2,544,510
Marketable
securities 1to5years 3,200,000 120,676 7,858 -1,276 3,327,258 2,228,881
Marketable
securities, total 6,200,000 139,361 22,198 -1,470 6,360,089 4,773,391
7 treasury Stock
Asof28February2010,thetreasurystockofSinnerSchraderAGamountedto270,656shareswithacalculated
facevalueof€270,656,representing2.34%ofthesharecapital.Incomparisonto31August2009,thetreasury
stockhadnotchanged.
The270,656sharesoftreasurystockheldbySinnerSchraderasof28February2010hadapurchasepriceof
€418,027,oranaverageof€1.54pershare.
8 Stock Option Plans
WithresolutionsoftheAnnualGeneralMeetingsofOctober1999,December2000,andJanuary2007,Sinner-
SchraderAGcreatedtheSinnerSchraderStockOptionplan1999,theSinnerSchraderStockOptionplan2000,
andtheSinnerSchraderStockOptionplan2007,alongwiththenecessaryconditionalcapitalof€375,000
(StockOptionplans1999and2000)and€600,000(StockOptionplan2007).Detailedinformationonthese
stockoptionplanscanbefoundintheNotestotheConsolidatedFinancialStatementsasof31August2009.
22 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
Inthepreviousfinancialyears,250,000optionsfromtheStockOptionplan2007hadbeenassignedatanaver-
ageexercisepriceof€1.62tomembersoftheManagementBoardoftheparentcompanyandtomembersof
themanagementofsubsidiaries.Inthefirstquarterof2009/2010,another25,000optionswereassigned.
Table5summarisesthechangesinthenumberofoptionsoutstandingfromthe2000planandthe2007plan:
table 5 | Outstanding stock optionsinnumberand€
Numberofoptions Weightedaverage
exerciseprice
Outstanding at 31 August 2009 288,367 1.69
Granted 25,000 1.69
Exercised – –
Cancelled – –
Expired – –
Outstanding at 28 february 2010 313,367 1.69
IFRS2prescribesincome-affectingentryinthebalancesheetofcostsresultingfromtheissueofemployee
optionsonthebasisofthecurrentvalue.Themarketvalueoftheoptionontheissuedateshouldbedistributed
overthewaitingperiodforexercisingtheoptionandthenproportionatelyenteredintheStatementsofOper-
ationsaspersonnelcostsfortherelevantperiod.Thecostsarerecordedagainsttheshareholders’equityinthe
reserveforshare-basedcompensation.Inthefirsthalfof2009/2010,thecoststotakeintoaccountamounted
to€19,611,comparedto€16,893inthecomparableperiodof2008/2009.
9 Dividend
TheAnnualGeneralMeetingofSinnerSchraderAGon16December2009decidedtopayadividendof€0.08
persharefromthebalancesheetprofitasof31August2009atthesuggestionoftheManagementBoardand
SupervisoryBoard.Anamountof€901,769wasthuspaidtotheshareholderson17December2009;theliquid
fundsandtheshareholders’equityfellbythisamount.
10 Related Party transactions
Inthefirsthalfofthe2009/2010and2008/2009financialyears,SinnerSchradergeneratedrevenuesof€4,103,777
and€5,795,225,respectively,withcompanieswhosesupervisoryboardsincludedmembersoftheSupervisory
BoardofSinnerSchraderAGwhoheldsupervisoryboardpositionsatSinnerSchraderuntilthedateoftheAnnual
GeneralMeetingon16December2009.
23CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
11 Major Events after the balance Sheet Date
On3November2009,SinnerSchraderAGandnextcommerceGmbHconcludedaprofit-and-loss-transferand
controlagreement.TheAnnualGeneralMeetingofSinnerSchraderAGagreedtothisagreementon16Decem-
ber2009.Theagreementtookeffectwhenitwasenteredinthecommercialregisteron16March2010andwill
applytotheentireshortnextcommerceGmbHfinancialyearfrom20May2009to30April2010.
12 Directors’ Holdings of Shares and Subscription Rights to Shares (“Directors’ Dealings”)
ThefollowingTable6showsthenumberofsharesinSinnerSchraderAGandthenumberofsubscriptionrights
tothesesharesheldbydirectorsofSinnerSchraderAGasof31August2009andtheirchangesinthefirsthalf
of2009/2010:
table 6 | Shares and options of the board membersinnumber
Shares 31.08.2009 Additions Disposals 28.02.2010
ManagementBoardmember:
MatthiasSchrader 2,455,175 – – 2,455,175
ThomasDyckhoff 74,950 – – 74,950
TotalsharesoftheManagementBoard 2,530,125 – – 2,530,125
SupervisoryBoardmember:
prof.DrReinhardpöllath1) – – – –
DieterHeyde – – – –
prof.CyrusD.Khazaeli – – – –
philipW.Seitz – – – –
TotalsharesoftheSupervisoryBoard – – – –
total shares of the board members 2,530,125 – – 2,530,125
Options 31.08.2009 Additions Disposals 28.02.2010
ManagementBoardmember:
MatthiasSchrader – – – –
ThomasDyckhoff 75,000 – – 75,000
TotaloptionsoftheManagementBoard 75,000 – – 75,000
SupervisoryBoardmember:
prof.DrReinhardpöllath1) – – – –
DieterHeyde – – – –
prof.CyrusD.Khazaeli – – – –
philipW.Seitz – – – –
TotaloptionsoftheSupervisoryBoard – – – –
total options of the board members 75,000 – – 75,000
1) SupervisoryBoardmemberprof.DrReinhardpöllathlefttheSupervisoryBoardofSinnerSchraderAGwitheffectfromtheendoftheAnnualGeneralMeeting
on16December2009.philipW.SeitzwaselectedasanewSupervisoryBoardmember.
24 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES
13 Responsibility Statement
Tothebestofourknowledge,andinaccordancewiththeapplicablereportingprinciples,thequarterlyfinancial
reportoftheSinnerSchraderGroupgivesatrueandfairviewoftheasset,financial,andincomesituationofthe
Group,andtheInterimStatusReportincludesafairreviewofthedevelopmentandperformanceofthebusiness
andthepositionoftheGroup,togetherwithadescriptionoftheprincipleopportunitiesandrisksassociated
withtheexpecteddevelopmentoftheGroup.
Hamburg,15April2010
TheManagementBoard
MatthiasSchrader ThomasDyckhoff
events & contact information
Financialcalendar2009/2010
3rdQuarterlyReport2009/2010(March2010–May2010) 15July2010
AnnualReport2009/2010 November2010
Ourpreviousreportsareavailableonlineandfordownloadinthe“Investors”sectionofthe
www.sinnerschrader.dewebsite.
Conferencecalendar2009/2010
next10conference 11–12May2010
Formoreinformationpleasevisitourconferencewebsitewww.next10.de.
ContactInformation
SinnerSchraderAG,InvestorRelations
völckersstraße38,22765Hamburg,Germany
T.+49.40.398855-0,F.+49.40.398855-55
www.sinnerschrader.de,[email protected]
EditorialInformation
publishedbySinnerSchraderAktiengesellschaft,Hamburg,Germany
Conceptanddesignheureka!–profitablecommunication,Essen,Germany
Dateofpublication:15April2010