Ad hoc announcement Final Results/Forecast BRAIN FORCE HOLDING AG: BRAIN FORCE Confirms Solid Results for 2008 Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ BRAIN FORCE HOLDING AG (Vienna Stock Exchange: BFC, Reuters: BFC.VI), a leading IT service company with business operations in Austria, Germany, Switzerland, Italy, Netherlands and the Czech Republic, published its consolidated financial statements for 2008 today, confirming the preliminary results already announced on February 10, 2009. BRAIN FORCE can look back at one of the most successful years in its corporate history. Record revenues and best operational performance Group revenues surpassed the EUR 100 million threshold for the first time, increasing 8% to EUR 106.21 million. In particular, the operational performance was outstanding. EBITDA amounted to EUR 7.79 million in 2008, compared to EUR 0.35 million in 2007. EBIT improved to EUR 3.83 million, up from a loss of EUR 16.68 million reported in the restructuring year 2007.'We outperformed our own guidance forecasting an EBIT of EUR 2 to 3 million, and achieved the highest operating results in the 25 year history of BRAIN FORCE', says BRAIN FORCE CEO Günter Pridt. All national subsidiaries achieved significant growth In Germany, the company's largest market, revenues climbed 10% to EUR 51.25 million, with EBIT up to EUR +2.47 million from EUR -11.51 million in the previous year. BRAIN FORCE generated revenue growth of 5% in Central East Europe, to EUR 15.48 million, and also succeeded in achieving a positive EBIT of EUR 0.50 million, compared to EUR -0.18 million in the preceding year. North Europe improved considerably, posting a 17% rise in revenues to EUR 11.06 million, with EBIT climbing to EUR +0.40 million following a loss of EUR -1.74 million in 2007. BRAIN FORCE increased revenues in South West Europe by 4% to EUR 28.42 million and EBIT from EUR 0.86 to 1.07 million.'After the restructuring year 2007, all national subsidiaries generated very solid results', adds Günter Pridt. Strong improvement in operating cash flow and high level of cash 'It must be particularly emphasized that the Group's cash flow from operating activities improved from EUR -2.02 to +6.28 million, enabling thecompany to reduce net debt from EUR 6.53 to 4.89 million as at December 31, 2008', says Thomas Melzer, BRAIN FORCE CFO. At the reporting date, the balance sheet total was EUR 66.31 million, Group equity amounted to EUR 24.15 million, and the equity ratio improved from 35 to 36% year-on-year. Cash and cash equivalents at December 31, 2008 amounted to EUR 8.80 million, and gearing (ratio of net debt to equity) was reduced from 25 to 20%. 'All indicators show that BRAIN FORCE is economically successful and has a healthy balance sheet', according to Thomas Melzer. One-off non-cash effects burden net result Despite the good operational performance, the Group had to report a negative profit after tax for the 2008 financial year of EUR -2.10 million, which can be attributed to two non-recurring effects. For one thing, the convertible bond of Kemp Technologies Inc. (New York) which the previous managing board had subscribed to, was completely written off, burdening the financial result to the amount of EUR 0.63 million. On the other hand, following an amendment to Germany's Corporate Tax Law, the tax loss carry-forwards for the German subsidiary were eliminated after the takeover of BRAIN FORCE by BF Informationstechnologie-Beteiligungsgesellschaft m.b.H. (BFIB), thus requiring the company to increase deferred tax expenses by EUR 2.90 million. 'Both steps are not cash-effective, and thus can be relatively easily managed. Also our financing has not been negatively impacted, and is secured', explains CFO Thomas Melzer. The Management Board will propose to the Annual General Meeting on May 14, 2009 that no dividend be distributed for the 2008 financial year, in order to ensure that sufficient liquidity is available to implement the Group's business strategy. Difficult economic conditions expected throughout 2009 The general uncertainty in respect to future economic developments in the upcoming quarters is clearly obvious. BRAIN FORCE anticipates a very difficult business environment. Therefore the company is preparing for a decline in revenues in all national subsidiaries on the basis of persistent cost optimization, and has initiated further restructuring measures.'Currently it is not possible to make a serious forecast regarding the development of revenues and operating results of BRAIN FORCE in 2009.However, we are well positioned and have no financing shortfall at present. Our target is to achieve positive operating results in 2009 and position the Group to generate long-term growth. In 2009 we will primarily concentrate on optimizing the operating cash flow', concludes CEO Günter Pridt. The 2008 Annual Financial Report can now be viewed or downloaded at www.brainforce.com or ordered from the company. BRAIN FORCE key figures for 2008 |------------------------------------------------------------------------| |Earnings indicators | | 2008 | 2007 | Chg. in % | |------------------------------------------------------------------------| |Revenues | EUR mill. | 106.21 | 98.33 | +8 | |------------------------------------------------------------------------| |EBITDA | EUR mill. | 7.79 | 0.35 | >100 | |------------------------------------------------------------------------| |EBIT | EUR mill. | 3.83 | -16.68 | >100 | |------------------------------------------------------------------------| |Profit before tax | EUR mill. | 2.38 | -17.91 | >100 | |------------------------------------------------------------------------| |Profit after tax | EUR mill. | -2.10 | -19.91 | +89 | |------------------------------------------------------------------------| |Free cash flow 1) | EUR mill. | 3.86 | -4.64 | >100 | |------------------------------------------------------------------------| |Investments | EUR mill. | 2.45 | 2.82 | -13 | |------------------------------------------------------------------------| |Acquisitions 2) | EUR mill. | 2.22 | 10.05 | -78 | |------------------------------------------------------------------------| |Employees 3) | | 1,153 | 1,164 | -1 | |------------------------------------------------------------------------| |-----------------------------------------------------------| |Balance sheet indicators | | 2008 | 2007 | |-----------------------------|-----------------------------| |Equity | EUR mill. | 24.15 | 26.27 | |-----------------------------|-----------------------------| |Equity ratio | in % | 36.4 | 35.3 | |-----------------------------|-----------------------------| |Net debt | EUR mill. | 4.89 | 6.53 | |-----------------------------|-----------------------------| |Gearing | in % | 20.2 | 24.9 | |-----------------------------|-----------------------------| |Net debt / EBITDA | | 0.6 | 18.7 | |-----------------------------|-----------------------------| |EBITDA / Net interest result | | 9.3 | 0.5 | |-----------------------------|-----------------------------| |FFO 4) / Net debt | in % | 98.2 | n.a | |-----------------------------------------------------------| 1) Cash flow from operating activities less cash flow from investing activities plus acquisitions 2) Including payments with own shares 3) Average number of employees (salaried, free lance) during the period 4) FFO = Funds from Operations = Gross cash flow Contact: BRAIN FORCE HOLDING AG Thomas Melzer Karl-Farkas-Gasse 22 / 4. OG A-1030 Wien t  +43 (0)1 263 09 09 - 12 f  +43 (0)1 263 09 09 - 40 investorrelations@brainforce.com (c)DGAP 27.03.2009 --------------------------------------------------------------------------- Language: English Issuer: BRAIN FORCE HOLDING AG Karl-Farkas-Gasse 22 / 4. OG A-1030 Wien Österreich Phone: +43 (1) 2630909-0 Fax: +43 (1) 2630909-40 E-mail: postoffice@brainforce.com Internet: www.brainforce.com ISIN: AT0000820659 WKN: 919331 Listed: Foreign Exchange(s) Wien End of News DGAP News-Service ---------------------------------------------------------------------------