vwd Vereinigte Wirtschaftsdienste AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act] 15.05.2012 07:26 Interim report according to Article 37x of the WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- vwd generates strong profitable growth Regulatory changes fuel business - Europeanization has positive impact - Sales achieve record level of EUR 21,378 thousand (+ 17.0%) - EBITDA climbs to EUR 2,007 thousand (+ 22.1 %) - EBIT soars to EUR 742 thousand (+ 24.6 %) - Guidance for 2012 confirmed Frankfurt am Main, May 15, 2012 - The vwd group got off to a dynamic start in fiscal year 2012. During the first three months of the year, sales rose strongly, achieving a quarterly record. Thanks to economies of scale, operating income experienced an above-average increase. The outlook for the entire year remains positive. Economic and industry trends While business and consumer confidence deteriorated considerably during the second half of 2011, economic experts have observed an improving climate in most regions since the beginning of the year. Nonetheless, high risks to the global economy linger as European sovereign-debt problems remain unresolved. As a result, the high level of financial-market instability persisted. The regulatory measures introduced in the wake of the market turbulence during the crisis of 2009 to supervise derivatives trading and the resulting requirements for more solutions promoting transparency primarily fueled business in the financial sector during the reporting period. Business development: sales skyrocket Thanks to the systematic expansion of its range of customer-centric products in recent years, the vwd group strongly profited from the changed industry environment in the first quarter of 2012. In particular, new solutions that support standardized investment processes fueled business. In addition, the business activities the group launched in 2011 in Italy were a strong factor contributing to our satisfactory performance. Against this backdrop, sales at vwd group during the first three months of the year through March 2012 climbed 17 % over sales in the first quarter of 2011 to reach a record level of EUR 21,378 thousand (first quarter 2011: EUR 18,265 thousand). Earnings situation: significantly improved Despite an overall increase in expenses for transmission costs, information procurement, fees for downloading exchange data and other sales-related items stemming from the company's entry into the Italian market, the vwd group's earnings strength during the first quarter of 2012 markedly improved once again. Although the setup of business in Italy was the primary cause for the rise in the share of material expenses to 37.2 % (first quarter 2011: 34.0 %) and the increase in the share of other operating expenses to 13.9 % (first quarter 2011: 12.8 %), the resulting effect on earnings was offset by a strong decline in personnel expenses, which fell to 42.9 % (first quarter 2011: 45.2 %) in relation to sales. Other operating expenses and the capitalization of internally produced assets rose, paving the way for earnings before interest, taxes, depreciation, and amortization (EBITDA) to outgrow sales and record a 22.1 % increase to EUR 2,007 thousand (first quarter 2011: EUR 1,644 thousand). Depreciation, amortization and impairment of tangible and intangible assets, which are largely related to purchase-price allocations involving companies acquired in the past, climbed by 20.7 % to EUR 1,265 thousand (first quarter 2011: EUR 1,048 thousand). It did not increase as much as EBITDA. Earnings before interest and taxes (EBIT) jumped by 24.6 % to EUR 742 thousand (first quarter 2011: EUR 596 thousand). The negative financial result of - EUR 336 thousand (first quarter 2011: - EUR 291 thousand) resulted from fictional interest and similar expenditures related to the put option for the outstanding shares of the EDG Group, which increased to EUR 273 thousand (previous year: EUR 230 thousand). By contrast, interest payments that were actually made and similar expenses for current loans remained virtually unchanged at last year's low level of EUR 69 thousand. As a result, earnings before taxes (EBT) soared by 33.4 % to EUR 407 thousand (first quarter 2011: EUR 305 thousand). In light of this result, tax expenses climbed to EUR 216 thousand (first quarter 2011: EUR 154 thousand), leading to net income before minority interests of EUR 191 thousand. Compared with net income of EUR 151 thousand in the first quarter of 2011, this represented an increase of 26.4 %. Net income after minority interests totaled EUR 125 thousand (first quarter 2011: EUR 107 thousand). In the quarter under review, earnings per share amounted to EUR 0.005 (previous year: EUR 0.004). Segment Market Data Solutions (MDS) With its standardized market-data systems, browser-based applications and comprehensive portfolio-management solutions for banks, savings banks, asset managers and companies, the MDS segment generated the most growth in the first quarter of 2012. Compared with the first quarter of 2011, sales increased by 29.1 % to EUR 11,287 thousand (first quarter 2011: EUR 8,740). This growth was especially fueled by the new business activities in Italy, which performed satisfactorily. On the product side, business with 'vwd market manager financials' and the terminal solutions in Switzerland did well. Business with private customers was rather sluggish. Due to the integration of the new business activities in Italy, material and other operating expenses outgrew sales, which, for the most part, could be bolstered by positive scale effects. As a result, EBITDA in the MDS Segment increased by 21 % to EUR 931 thousand (first quarter 2011: EUR 769 thousand). Segment Technology Solutions (TS) The TS Segment boosted its sales by 11.7 % to EUR 5,058 thousand (first quarter 2011: EUR 4,529 thousand) in the quarter under review. Business with current customers remained stable. Newly acquired projects primarily fueled sales. In addition, demand for sales-processing solutions developed satisfactorily. In Switzerland, business in the areas of portfolio management and administration for asset managers developed well. In addition, activities in Italy attributed to this segment were included for the first time. By contrast, the performance of the Transactions Solutions product group lagged behind the first quarter of 2011. Thanks to favorable developments, in particular in material and personnel expenses, the TS segment's EBITDA soared once again, skyrocketing by 61.8 % to EUR 751 thousand (first quarter 2011: EUR 464 thousand). Segment Specialised Market Solutions (SMS) With sales experiencing a slight increase of 0.8 % to EUR 5,033 thousand (first quarter 2011: EUR 4,995 thousand), the SMS segment's performance was mixed. While advertising income generated by the finance portal finanztreff.de declined, sales generated by certificate ratings and value-at-risk measurements grew. Business at 'vwd listing services' could be stabilized. Two particularly satisfying developments were the contract extension with a major German newspaper and the acquisition of two new clients in Austria. These developments resulted, however, in a significant increase in material expenses, causing the segment's EBITDA to drop by 20.5 % to EUR 326 thousand (first quarter 2011: EUR 410 thousand). Financial and asset situation: sturdy foundation The operating business of vwd group continues to rest on a sturdy financial foundation. With total assets of EUR 98,605 thousand (as of December 31, 2011: EUR 86,548 thousand), the equity ratio amounted to 27.8 % (as of December 31, 2011: 31.4 %). The decline is primarily due to the increase in total assets and liabilities stemming from the receipt of customer payments, which experienced a seasonal jump as of March 31, 2012, compared with the reporting date in 2011. While a strong rise was also recorded in the first quarter of 2011, this year's increase is above the previous year's level and represents a direct expression of the current upturn in business. While customer payments rose, trade payables experienced a seasonal decline. Other liabilities experienced a sharp rise, which can largely be attributed to the new business in Italy. The amount of cash and cash equivalents at the vwd group's disposal is outstanding. As of March 31, 2012, cash and cash equivalents had risen to EUR 17,370 thousand (December 31, 2011: EUR 11,770 thousand). The vwd group can report total net financial assets of EUR 8,800 thousand (December 31, 2011: net financial liabilities of EUR 651 thousand). Opportunities and risks In the first quarter of 2012, no new opportunities for or risks to the future performance of the vwd group emerged compared to those presented in the financial statements for fiscal year 2011. Outlook: continued upswing in business expected Business in fiscal year 2012 will primarily be shaped by the evolution of Europe's sovereign-debt crisis and its effects on the international financial markets. Additional uncertainty was fueled at the end of April and beginning of May by Spain's downgrade by the rating agency Standard & Poor's as well as by the election of a new president in France and the rising popularity of anti-euro populists in Greece and the Netherlands. These developments could hamper efforts to solve the debt problem. In addition to economic factors, the financial sector also faces continued regulatory changes. The challenge of reviewing existing business models and optimizing business processes is expected to intensify in the future. These trends could lead to a growing willingness in the sector to make investments from which vwd group could profit thanks to its customized products and solutions. One example is the expansion of the product range in funds listing from print to online as well as the support of funds customers in preparing and distributing key investment information documents (KIID). Additional impulses could emerge from the planned introduction of a new directive on investment services in Germany, the Finanzanlagenvermittlungsverordnung. On the cost side, additional structural improvements are planned, which are primarily to be achieved by leveraging synergies in the business in Italy. The company confirms its published guidance for the entire year of 2012. It expects that consolidated sales will grow moderately and total between EUR 87.0 million and EUR 96.0 million. EBITDA is expected to amount to between EUR 9.6 million and EUR 10.5 million. Frankfurt am Main, May 2012 vwd Vereinigte Wirtschaftsdienste AG The Management Board Forward-looking statements: This interim statement contains forward-looking statements that reflect the current views, expectations and assumptions of the vwd group and are based on the information available to the company at the time of its preparation. Forward-looking statements cannot guarantee that results and developments will actually occur in the future, but are subject to risks and uncertainties. Different factors may cause the future results and development of the vwd group to deviate substantially from the expectations and assumptions formulated in this statement. Changes in general economic conditions, new legal parameters, the competitive situation and financial market developments, in particular, can impact future results and developments. Additional information: vwd Vereinigte Wirtschaftsdienste AG Tilsiter StraÃe 1 60487 Frankfurt am Main Investor Relations: Carsten Scharf Tel: +49 (0) 69-50701-270 Fax: +49 (0) 69-50701-114 E-mail: investorrelations@vwd.com http://www.vwd.com vwd group profile The vwd group offers customized information, communications and technology solutions for the securities business. As a leading European provider, it specializes in meeting individual customer requirements in the areas of asset management, retail banking, private banking and wealth management, offering innovative solutions for financial service providers, investors and the media. With around 470 employees in Germany, Belgium, France, Italy, the Netherlands and Switzerland, vwd group is an international group of companies with a strong focus on local financial markets. The group's best-known brands are: finanztreff.de, vwd fonds service, vwd market manager, vwd portfolio manager, PortfolioNet, TradeLink and Tai-Pan. vwd AG is listed in the General Standard of the Frankfurt Stock Exchange (ISIN DE0005204705). 15.05.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: vwd Vereinigte Wirtschaftsdienste AG Tilsiter StraÃe 1 60487 Frankfurt am Main Germany Internet: http://www.vwd.com End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-IRE: vwd generates strong profitable growth
| Source: EQS Group AG