semi-annual report 2000 - softing

SEMI-ANNUAL REPORT 2000

We set world standards in

control and communication technology

in our fields of business

Industrial Automation and

Automotive Electronics


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With 18.1 million DM, income of orders exceededthose of the previous year’s comparative period by23%; thus, orders were within the planning rangefor the past six months. During the first sixmonths, the Softing group achieved a turnover of16.4 million DM worldwide. Thus, 39% of theplanned annual sales of 42.1 million DM wereachieved already in this period. The seasonal variations of our business with a significant in-crease in turnover during the last quarter of thebusiness year must be taken into account, as wellas the 4CONTROL turnovers not yet realized onJune 30th.

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

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

In June, our first foreign affiliate company SoftingIndustrial Solutions Italia S.R.L. in Verona wasfounded. Operational business started in July withthe aim of substantially expanding distributionand product support in the business areasIndustrial Automation and 4CONTROL –Internet-based Automation on the Italian market.

Employees

Because of the continuing strains on the labormarket for IT experts, the number of our em-ployees has not grown as much as was planned. In the first six months of 2000, this number hasincreased to 184. Due to the limited number ofsoftware development engineers in Germany,Softing has by now taken a new course in theacquisition of employees. By means of staff re-cruitment measures in Eastern and WesternEurope which have already begun, we expect toacquire the necessary personnel during the nextfew months.

Softing continues to grow during

the first six months of 2000


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Automotive Electronics – a Fundamental Factorfor Softing

Automotive Electronics has been one of Softing’smost fundamental business areas. Incomingorders (8.3 million DM) increased by 39% as com-pared to the corresponding period of the previousyear. With 6.5 million DM, however, turnover wasstill 17% below the planned semi-annual turn-over. This was due to the lack of additional staffparticularly in this area, which led to delays in

some projects. The EBT amounts to -0.64 million DM. For the next sixmonths, however, weexpect to catch up onour annual plans of16.5 million DM turn-over and 3.2 millionDMEBT in AutomotiveElectronics, particular-ly due to the recruit-ment measures

mentioned above.

Industrial Automation – EncouragingDevelopments for all Core Indicators

There was a positive development for the coreindicators in Industrial Automation. With 8.4 million DM, incoming orders were above theprior-year level. Due to increased product sales,the turnover amounted to 8.8 million DM andthus 39% of the annual plan of 22.5 million DMcould already be fulfilled. The EBT of 0.65 million DM is also encouraging.Both turnover and EBT are above the plannedfigures for the first six months. The central targetsof the business year will probably be surpassed.

With the Swedish ABB Robotics AB, a supply con-tract over several years could be signed; an annualturnover of approx. 2 million DM for the next fewyears is envisaged.

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

For the first six months, incoming orders alreadyamounted to 1.3 million DM (first six months1999: 120,000 DM); turnover was 1.0 million DM.For the next six months, we count on a continuin-gly strong increase in incoming orders and, due toan increase in deliveries, we expect to increasinglycatch up on our planned turnover of 3.3 millionDM for the entire business year. Especially ourcooperation with an internationally establisheddrive manufacturer lets us expect a significantincrease in turnover for 2001. The EBT for thefirst six months amounted to -1.95 million DMwith a planned EBT of -3.5 million DM for theyear 2000.

The ongoing change of paradigms from hardwaretechnology to software-based automation technolo-gy opens up a completely new ultimate consumermarket for Softing worldwide. With its product 4CONTROL, Softing not onlyhas assumed technology leadership, but currentlyalso grows from a manufacturer and supplier ofautomation components to a global market leaderand vendor of automation technology for Internet-based PC control systems.

Development of the Individual

Business Areas


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

Our company’s IPO took place during a time ofuncertainty on the exchange market, when severalcompanies postponed or even cancelled theirplanned IPOs. Therefore, we are proud to notethat the first price of 16.00 Euro exceeded theissue price of 14.50 Euro by 10.3%. As a newcomeron the Neuer Markt, Softing was able to gain aleading position with a stock rate of 27.40 Euro onJune 30th, 2000, and an advance of 89% as compa-red to the issue price.

Company Calendar

Quarterly Report 3-2000 22.11.2000

Certified annual statement 30.03.2001

Balance press conference / DVFA in Frankfurt05.04.2001

Management report in German and EnglishApril/May 2001


General shareholders’ meeting in Munich29.05.2001


Contact

Investor RelationsTel.: +49 (89) 4 56 56-333Fax: +49 (89) 4 56 56-492Email: [email protected]://www.softing.com

Successful IPO –

Volatile Prices

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Group balance sheet according to IAS;

status: June 30th, 2000 (not audited)


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30.6.2000DM

14.629.565,00

1.742.664,00

476.136,0016.848.365,00

2.065.569,00

7.353.412,0014.473,00245.865,00

7.613.750,00

1.599.040,00

19.975.669,0031.254.028,00

58.066,0048.160.459,00

ASSETS

A. Fixed assets

I. intangible assetsindustrial property rights and similar rights and values as well as licenses to such rights and values

II. tangible assets other assets, furnitures and fixtures

III.financial assets

B. Current assets

I. stocks

II. accounts receivable and other assets1. trade debtors2. loans to affiliated undertakings3. other assets

III.investments

IV. liquid funds

C. Prepayments and accrued income


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30.6.2000DM

9.779.150,00

19.098.552,00

1.256.072,00

6.116.090,0036.249.864,00

4.902.000,00

1.074.228,000,00

2.819.928,003.894.156,00

43.227,00329.204,00360.831,00598.433,00

1.782.744,003.114.439,00

48.160.459,00

LIABILITIES AND SHAREHOLDERS EQUITY

A. Equity capital

I. subscribed capital

II. capital reserves

III.reserve from capital consolidation

IV. consolidated net earnings

B. Deferred taxes

C. Accruals

1. accruals for pensions and similar liabilities

2. provisions for taxation3. other accruals

D. Liabilities

1. liabilities to credit institutions2. liabilities from long-term production orders3. customer prepayments for orders4. trade accounts payable5. other liabilities

Group balance sheet according to IAS;

status: June 30th, 2000 (not audited)


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Group Profit and Loss Account According

to IAS; Status: June 30th, Semi-Annual 2000

30.6.2000DM

16.358.609,00

524.413,00 2.882.478,00 556.164,00

-3.162.434,00 -594.685,00

16.564.545,00

-9.516.038,00

-1.582.697,00 -3.722.642,00 -3.979.449,00 -2.236.281,00

- 25.000,00 140.602,00 -46.456,00

-2.117.135,00

35.100,00 -

35.100,00

2.004.345,00 -2.540,00 -80.230,00

6.196.320,00 6.116.090,00

-0,10

x

1. Sales revenues2. Change in inventory of finished and

unfinished products3. Other internally produced and capitalized assets4. Other operating revenue5. Raw materials and consumables

a) expenses for raw materials and suppliesand for purchased goods

b) expenses for purchased services

6. Staff costsa) wages and salariesb) social insurance contributions and social security

costs for old age pension and for support7. Amortization of intangible and tangible assets8. Other operating expenses

9. Income from participations10. Income from long-term financial investments11. Other interests and similar earnings12. Interest and related expenses13. Result of ordinary business activities

14. Extraordinary income15. Extraordinary expenses16. Extraordinary result

17. Income taxes18. Other taxes19. Annual net profit / deficit (-)

20. Profit/loss carried forward (-)21. Consolidated profit / consolidated loss (-)

net earnings per share according to DVFA/SG


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Group Cash-Flow Statement According

to IAS; Status: June 30th, Semi-Annual 2000

30.6.2000TDM

-80

3.723-1.953-2.989

0-547

535-14

508-1.599-268521

-273-225-43

-2.707

-7-484-40-532

4.680

0-419

16.1160

20.378

17.1392.83619.976

Net income/(-) lossAmortization of intangible assets and

depreciation on tangible assetsChange in long-term reservesCapitalization of self-produced intangible assetsResult from the disposal of fixed assets

including shareholdingsIncrease in inventoriesDecrease in trade accounts receivable including

long-term receivablesIncrease in trade accounts receivable from related companiesChange in other assets and deferred charges

and prepaid expenses including long-term loansChange in stocksChange in other reservesChange in advance payments receivedChange in trade accounts payable including

liabilities from long-term contractsDecrease in other liabilitiesChange in liabilities due to banksFunds provided by operating activities

Payments received on disposals of fixed assetsPayments made for investments in fixed assetsPayments made for investments in financial assetsFunds used for investing activities

Capital increase/decreaseCapital subscribed, eliminated due

to the initial consolidationChange in reserve from capital consolidationTransfer to capital reserves minus withdrawalsNet profit available eliminated due to initial consolidationFunds provided by financing activities

Cash value change of net fundsNet funds at the beginning of the periodNet funds at the end of the period

semi-annual report 2000 - softing

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