Ad-hoc | 3 May 2005 09:30

AC-Service AG: AC-Service Finishes First Quarter on Positive Note

Ad hoc announcement §15 WpHG Quarterly Report AC-Service AG: AC-Service Finishes First Quarter on Positive Note Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— AC-Service Finishes First Quarter on Positive Note Turnabout in earnings performance despite decline in sales. KWP equity stake included in results since March 2005. Major increase in operating cash flow. Strong balance sheet. Stuttgart, 3 May 2005 – AC-Service, an IT service provider focused on IT Outsourcing, Human Resource Services and SAP Consulting, finalised its quarterly report today and reported sales of EUR 10.9 million (prior year: EUR 11.6 million), an EBIT of EUR 0.6 million (prior year: EUR 0.3 million) and net earnings of EUR 0.3 million (prior year: EUR -0.04 million) in the first three months of 2005. Quarterly earnings per share (IFRS) were some 6 euro cents (prior year: a loss of 1 euro cent). Regular goodwill amortisation, which in 2004 burdened first-quarter earnings by EUR 0.2 million, has been eliminated starting in 2005 due to changed accounting regulations (IFRS). The majority stake in the consulting company Kümmel, Wiedmann + Partner (KWP), which specialises in SAP HR consulting and was first fully consolidated in the group financial statements beginning in March 2005, contributed to these first-quarter results with a month”s sales of EUR 0.6 million and one-month operating earnings (EBIT) of about EUR 0.04 million. AC-Service enjoys a strong and robust balance sheet. Shareholders” equity accounts for 64% (31 Dec 04: 60%) of the balance sheet total. Cash and cash equivalents declined only EUR 1.7 million to EUR 11.3 million (31 Dec 04: EUR 13.0 million), despite cash used for acquiring holdings in KWP (EUR 0.5 million) and Process Partner (EUR 1.9 million). After adjusting approximately EUR 2.4 million in cash used for purchasing the two equity stakes, the company posted a free cash flow of EUR 1.1 million (prior year: EUR -0.02 million). There was a major increase in the operating cash flow to EUR 1.8 million (EUR 0.9 million). The average staffing strength for the quarter was 287 full-time equivalents (FTE) (prior year: 303 FTE). As at the end of the quarter there were 313 FTE (prior year: 301 FTE) employed in the AC-Service Group. This increase is mainly due to the inclusion of KWP. The personnel measures undertaken at the end of the year to further streamline the organisation and improve pricing competitiveness, which in 2004 resulted in special charges particularly within the Human Resource Services division, will show increasing cost savings beginning in the second quarter of 2005. A further optimised organisation, extremely promising range of products, systems and services, the equity stake in KWP and the 100% takeover of Process Partner have created a solid basis for a turnabout. Overall we expect this current year to show an impressive increase in earnings as compared to sales performance. Additional information on the Internet at http://www.ac-service.com. AC-Service AG Schockenriedstr. 7 70565 Stuttgart Deutschland ISIN: DE0005110001 WKN: 511000 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 03.05.2005 030930 Mai 05