REALTECH AG / Key word(s): Final Results 03.03.2015 10:17 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- REALTECH AG: provisional consolidated financial statements for 2014 - Group revenue down 8% to EUR 35.9 million - IT consulting 6% lower and software business down by 13% - EBIT negative again: minus EUR 1.3 million following minus EUR 6.5 million in the previous year - Equity ratio at 47%, net liquidity at EUR 4.9 million Walldorf, March 03, 2015. According to provisional figures, REALTECH AG recorded Group revenue in fiscal year 2014 of EUR 35.9 million (2013: EUR 39.1 million), a fall of 8%. IT consulting business fell 6% to EUR 24.2 million (EUR 25.7 million). Revenue from the sale of software decreased 13% to EUR 11.7 million (EUR 13.5 million). Revenue earned by foreign subsidiaries remained at the same level as in the previous year at EUR 11.9 million, while revenue in Germany fell by 12%. Despite this reduction in revenue in the Consulting and Software segments, the company was able to increase the gross profit by 4%, from EUR 15.3 million to EUR 15.9 million. Here, the measures for cost reduction introduced in the previous years showed their effect. The operating profit (EBIT) was negative again at minus EUR 1.3 million, although to a much lesser extent than in the previous year (minus EUR 6.5 million). Compared with the previous year, the EBIT increased in most REALTECH countries. The EBIT was slightly below the previous year's level only in New Zealand. While all foreign REALTECH companies finished the 2014 fiscal year with a positive EBIT, in Germany REALTECH recorded a negative operating profit. The operational segments contributed to this overall development as follows: segment income in Consulting improved from minus EUR 2.5 million to EUR 0.6 million. The operating margin reached 3%, following minus 10% in the previous year. Segment income in Software rose from minus EUR 1.9 million to minus EUR 0.1 million. The operating margin was therefore minus 1% compared with 14percent in the previous year. EBITDA increased from minus EUR 5.0 million to minus EUR 0.2 million. The losses in the previous fiscal year led to a reduction in the net liquidity in comparison to the reporting dates from EUR 9.4 million to EUR 4.9 million. The Group also continues to be free of significant and long-term liabilities. The equity ratio rose slightly from to 47% (46%). 4th quarter 2014 Group revenue in the 4th quarter of 2014 decreased by 3 % compared with the same quarter of the previous year to EUR 10.6 million (Q4/2013: EUR 10.9 million). This change was a result of various developments: revenue from IT consulting rose by 21 % to EUR 7.1 million (EUR 5.8 million). By contrast, revenue for software solutions decreased by 31 % to EUR 3.5 million (EUR 5.0 million). A large order in 2013 led to this seemingly backward development. Operating profit (EBIT) improved from minus EUR 3.0 million to minus EUR 0.1 million. At EUR 0.2 million, EBITDA achieved a slightly positive value, following minus EUR 2.5 in Q4/2013. Outlook The business development in 2014 was shaped by the decisions made at the end of 2013. This essentially involved stabilizing the expenses and, at the same time, organizing the operational business profitably. As the current figures show, the company has succeeded in taking the first steps - even if the income earned is still far from adequate. For 2015, the Executive Board's primary aim is again to guide the company back to success in respect of earnings and achieve profitability that is assured over the long term. For this, it is essential to significantly increase revenues in both segments over the medium and long term, to reduce the costs and to take further structural measures. Following the decrease in revenue in 2014, the Executive Board assumes that, in the 2015 fiscal year, revenue from consulting and software will stabilize. If the overall economy is positive, revenue growth is possible in both segments. In view of this, the REALTECH Executive Board expects that a positive operating profit can be achieved for the 2015 fiscal year. The forecasts include all the currently known events that may have an influence on the development of the REALTECH Group's business. REALTECH AG's net profit in the 2014 fiscal year was EUR 0.0 million, as in the previous year. At the General Meeting, scheduled to be held in Wiesloch on May 19, 2015, the Executive and Supervisory Boards of REALTECH AG will propose carrying forward the net profit of EUR 0.0 million for the 2014 fiscal year to a new account. Contact person: Andrea Geitner Investor Relations REALTECH AG, 69190 Walldorf Tel.: +49.6227.837.500 Fax: +49.6227.837.546 E-mail: [email protected] 03.03.2015 The DGAP 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: REALTECH AG Industriestraße 39c 69190 Walldorf Germany Phone: +49 (0)6227 837-500 Fax: +49 (0)6227 837 9134 E-mail: [email protected] Internet: www.realtech.com ISIN: DE0007008906 WKN: 700890 Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------