IDS Scheer AG / Final Results
28.02.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Financial press conference on the fiscal year 2007 (IFRS, unaudited)
IDS Scheer raises earnings per share by 25%
Sales of high-margin products area still showing strongest growth rate
Concentration on strategic growth topics in consulting pays off
Higher dividend again proposed: 0.22 (previous year: 0.20) per share
Significant expansion of number of customers
IDS Scheer forecasting organic sales growth above the market average of
6% while maintaining a stable EBITA margin for 2008
Saarbruecken, February 28, 2008
In the fiscal year 2007, IDS Scheer AG increased its total sales as against
the previous year by 11% to 393.5 million. Without adjustment for
currency effects, this corresponds to a rise of 12%. In the full year,
earnings before interest, taxes and amortization of intangible assets
(EBITA) improved by 22% to 39.6 million. In line with this, the EBITA
margin rose from 9.2% in the fiscal year 2006 to 10.1% in the year under
review. Adjusted for currency translation effects the EBITA margin was
10.2%. Thus, IDS Scheer outperformed its own forecast for sales and exactly
met its earnings prognosis.
The IDS Scheer group's net income for the fiscal year 2007 increased by 25%
to 23.4 million. Earnings per share rose accordingly from 0.57 in the
previous year to 0.71 in the year under review. The Executive Board and
the Supervisory Board have resolved to propose to the annual shareholders'
meeting for the fiscal year 2007 that the dividend again be raised. The
company will propose a dividend increase of 10% to 0.22 per share
(previous year: 0.20). Measured against the year-end stock price on XETRA
on December 28, 2007 of 15.35, this signifies a dividend yield of 1.4%.
'We will be continuing our shareholder-oriented dividend policy this year
as well. IDS Scheer AG is thus one of the few companies on the TecDAX and
in the IT industry that has consistently shared its business success with
its shareholders by raising its dividend distribution since the time it
went public. We shall also retain our dividend policy in future,' explained
Thomas Volk, CEO and President of IDS Scheer AG.
Share of sales for products further expanded significant rise of customer
base
The company continued to push ahead with the expansion of the products area
in the past fiscal year. Its share of total sales grew to 33%, again
bringing IDS Scheer closer to its medium-term goal of a 40% share of sales.
In particular, growth stimulus was generated by the leading international
market position of the ARIS Platform, the innovative and customer-oriented
development of the solution portfolio, the proven business process
management expertise and the strategic partnerships.
Product area sales consisting of sales for ARIS licenses, maintenance and
ARIS services climbed by 15% to a total of 129.5 million. The share of
the area's sales accounted for by license volume increased to 44% in the
fiscal year 2007. License sales for ARIS rose by 26% to 57.2 million
(previous year: 45.4 million) where the first two quarters of 2007
benefited from several large license orders. IDS Scheer succeeded in
growing the number of customers significantly and with more than 7,000
companies the customer base represents a solid foundation for further
growth.
In line with the forecast, the EBITA margin in the product business area
declined from 25.8% to 22.3%. The reason for this regression was the higher
level of investments in sales and marketing, the development of new
products and solutions as well as the partnership with leading business
software providers for the joint development and marketing of products
based on ARIS.
As part of its partner strategy, in the products area, IDS Scheer further
intensified its long-standing strategic technology and sales partnership
with SAP, the partnership with Oracle continued to proceed according to
plan and a sales partnership was concluded with Microsoft. In addition,
intensive cooperations were established with system integrators to
strengthen sales of the ARIS product family around the world.
The investments in product development carried out in the fiscal year 2007
and planned for fiscal year 2008 will help to leverage the enormous
potential of business with partners in the coming years and increase the
earnings contribution of the products area in the long term. In 2007,
13.3 million were invested in research and development for the ARIS
Platform.
Strategic focus in consulting services paying off earnings tripled
The consulting area enjoyed a considerable sales boost of 9% to 264.1
million. Direct consulting services grew by 9% in the fiscal year 2007 to
234.7 million, while sales with SAP and other licenses and the
corresponding revenue from maintenance climbed by as much as 16% to 29.4
million.
At the same time EBITA was raised from 3.5 millions in 2006 to 10.7
millions, thus being tripled over the previous years figure. This
improvement of the results led to a significant increase in the EBITA
margin of the whole consulting area from 1.4% to 4.1% in fiscal 2007.
There was particular success in consulting with process-oriented and
pre-configured industry solutions for small and midsized companies. In the
large customer segment, the process-driven SAP topic is still the largest
sales factor. In both customer segments the stronger focus on industries
and topics in future will allow a more direct customer approach and more
intensive knowledge transfer.
In the consulting area, partnerships are essentially centered on SAP as a
product manufacturer and Hewlett-Packard (HP) as a project partner. Several
large projects were processed together with HP in the past year. Thanks to
the joint sales activities, a highly promising sales pipeline was
established for the fiscal year 2008.
Free cash flow more than doubled significant rise in net cash position
IDS Scheer succeeded in generating a stronger cash flow in the past fiscal
year. The operating cash flow was 32.4 million, considerably higher than
forecasted by the company. This corresponds to an increase as against the
previous year of 51%. After deducting the cash flow from investing
activities, the free cash flow amounted to 26.9 million more than
double the figure for the previous year of 12.7 million. In light of
this, the net cash position improved from 49.3 million to 71.5 million.
Liquid assets increased to 98.4 million as of December 31, 2007, after
74.4 millions at previous years date.
Employee growth in sales, marketing and product development
As of December 31, 2007, the number of employees in the IDS Scheer group
was 2,992 6% higher than at the end of 2006 (previous year: 2,823
employees). At 18%, the increase of staff was strongest in the Americas
region. The DACH region employs more than half of the group's staff around
the world.
In a highly competitive market environment, IDS Scheer further expanded the
sales and marketing and product development areas in particular by
appointing new, expert employees.
Outlook for 2008: stable EBITA margin with growth above the market average
and high outlays
Thomas Volk said of the company's business strategy: 'The company's outlook
in the current year is based on its goal of 'Improve Business Performance'
for our customers. This goal means focusing our strategy on the improvement
of customers' business ratios by optimizing their associated business
processes. In order to ensure the implementation of this growth strategy
for the future, we will be investing selectively in marketing, our own
sales as well as partner business in 2008.'
IDS Scheer is also planning to expand its customer base significantly and
to focus on broadening the ARIS products in 2008. This strategy will be
supported by the ongoing development of the companys industry and
topic-specific solution offerings.
In addition, in light of global shortage of expert employees, human
resources work is to be further intensified. As well as employee loyalty
particularly as a result of targeted training IDS Scheer intends to
promote its attractiveness as an employer of choice even more strongly.
IDS Scheer is still operating in a growth market. However, given the
uncertainty on international markets and the resulting investment
restraint, experts are forecasting somewhat weaker growth rates in the
current year. Against this backdrop, IDS Scheer is planning organic sales
growth for 2008 of at least 6% at constant currency rates. Furthermore, the
company expects its EBITA margin to remain steady year-on-year. On account
of the basis level for the previous year, which was positively influenced
by large orders, the growth effects are not expected to become more
immediately apparent until the second half of 2008.
IDS Scheer is planning to achieve the growth targets set for 2010. In line
with this, sales are expected to increase as a result of both organic
growth and acquisitions in the product-related area to a total of at least
600 million. The extremely strong sales growth in the products area is
linked to the forecast for a significant improvement in the group EBITA
margin to over 14%.
Notice to journalists and analysts:
Today, on Thursday, February 28, 2008, personal conferences will be held at
the Hotel Steigenberger Frankfurter Hof in Frankfurt/Main:
10:00 a.m. (CET) press conference (to be held in German);
1:00 p.m. (CET) analysts and investors conference (to be held in English)
including VisionCast and telephone conference.
The access number for the analysts and investors conference can be obtained
by calling +49 (0)681-210-1050 or +49 (0)681-210-3201.
____________
For further information, please contact:
Susanne Paul / Ingrid Britz-Averkamp
Investor Relations, Financial Press
Tel.: + 49 (0) 681 / 210 3201
Fax: + 49 (0) 681 / 210 1231
Email: susanne.paul@ids-scheer.com
DGAP 28.02.2008
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Language: English
Issuer: IDS Scheer AG
Altenkesseler Straße 17
66115 Saarbrücken
Deutschland
Phone: +49 (0)681 210-1050
Fax: +49 (0)681 210-1231
E-mail: invest@ids-scheer.com
Internet: www.ids-scheer.com
ISIN: DE0006257009
WKN: 625700
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: IDS Scheer AG: IDS Scheer raises earnings per share by 25%
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