D R I L L I S C H A G - S E M I A N N U A L R E P O R T 2 0 0 5
2 Drillisch Semiannual Report 2005
F A C T S A N D F I G U R E S
Drillisch Group Indicators for First Half-Year 2005
I-II/2005 I-II/2004 I-II/2003*
Revenues in million € 161.9 170.1 55.9
EBITDA in million € 14.1 10.0 3.8
EBIT in million € 12.3 6.2 1.9
EBT in million € 12.8 6.5 2.0
Group net earnings in million € 7.6 3.5 1.0
Earnings per share in € 0.23 0.10 0.04
EBITDA margin as % of sales 8.7 5.9 6.8
EBIT margin as % of sales 7.6 3.7 3.5
EBT margin as % of sales 7.9 3.8 3.5
Group net earnings margin as % of sales 4.7 2.1 1.7
Capital ratio (as % of balance sheet total) 65.4 55.5 62.9
ROE (group earnings to shareholder’s equity) 11.5 6.5 3.7
Cash flows from operating activities in million € 3.0 6.6 3.3
Depreciation and amortization in million €** 1.8 3.8 1.9
Investments, adjusted, in million € 2.4 0.5 0.4
Annual average number of employees (incl. executive board) 350 373 165
Mobile subscribers as at 30 June(approx. in thousands) 1,637 1,623 570
Debit-plan subscribers 1,211 1,175 485
Credit-plan subscribers 426 448 85
* The figures for I-II/2003 do not include those of the VICTORVOX AG subsidiary acquired inNovember 2003.
** Depreciation and amortization Figures for I-II 2003 and I-II 2004 include goodwill.
Interim Consolidated Financial Statements as at 30 June 2005 12
Consolidated Balance Sheet 12
Consolidated IncomeStatement 14
Consolidated Cash Flow Statement 15
Consolidated Statement of Changes in Shareholders’ Equity 16
Notes to the Consolidated Financial Statements 17
Service Corner 18
Publications 18
Your Contacts 18
Information and Ordering Service 18
Imprint 19
Drillisch Semiannual Report 2005 3
Facts and Figures 2
To Our Shareholders 4
Market Environment 5
The Telecommunications- and IT-Market in Germany 5
Software Services 6
The Capital Market –1 April 2005 to 30 June 2005 Investor Relations Report 7
Drillisch Group Business Performance as at30 June 2005 9
Sales and Marketing 9
Company Profile 9
Staffing 10
Net Worth and Financial Situation 10
Earnings Situation 10
Outlook 11
Risk Assessment 11
Contents
C O N T E N T S
4 Drillisch Semiannual Report 2005
Dear Ladies and Gentlemen,
The Drillisch Group once again accele-rated its dynamic earnings performan-ce in second quarter 2005. The EBITDA (earnings before interest,taxes, depreciation and amortization),the most important earnings indicatorfor any mobile-communications ser-vice provider, surged 60.2 percent to8.5 million euros. This allowed us toachieve what for our industry is a clearly above-average EBITDA opera-ting margin of 10.2 percent.
The tremendous success of our dis-count brand SIMply was a key factorin driving the business. As early asmid-April we were the first providersto launch a “customer-friendly, no-gimmicks offer”. Now that other pro-viders have gotten on the bandwa-gon, we always guarantee our custo-mers the lowest-possible price withour new SIMply rate option called“Best Rate Matching”. We do this bycomparing the SIMply rate everymonth with five comparable discountrates and then billing the customerusing the lowest-priced model. This isour idea of rate transparency andputting the customer first.
You need only look at all the semian-nual earnings figures to see that pro-fit margins have not suffered as aresult: With a slightly larger subscriber
base of 1.637 million, sales reached161.9 million euros (minus 4.8 per-cent). This is a clear expression of thevalue-oriented customer-loyalty pro-gram we introduced last year, where-by customers are only subsidized inrelation to the gross profit achieved.Thus the EBITDA rose 40.4 percent to14.1 million euros, while the EBITDAoperating margin reached 8.7 per-cent.
The focus of our expansion strategy isprofitable growth. This is why we aremanaging the company on the basisof earnings and not sales indicators.For us, the widely used parameterARPU (average revenue per user) issimply not a satisfactory comparativeor management benchmark. Wewant to be judged instead on thekind of earnings results we achieve.And as far as we’re concerned, ourearnings are once again quite impres-sive.
The excellent achievements of firsthalf-year have given us cause toadjust our forecasts significantlyupward for the fiscal year as a whole.With 1.7 million subscribers weintend to post revenues of just under350 million euros. The EBITDA shouldreach 27.5 million euros and the EBT24.5 million euros. This means we areraising our earnings expectationsfrom May by 3.5 million euros.
Letter from the Executive Board
T O O U R S H A R E H O L D E R S
Vlasios ChoulidisDirector Sales, Marketingand Customer Service
Paschalis ChoulidisExecutive-Board Spokesman (since25.01.05), Director of Finances, Financial Communication,Controlling and IT
Paschalis Choulidis Vlasios Choulidis
With best regards from Maintal,
The German market for informationand communications technology(ICT) continues to grow. In its mostrecent industry barometer, theGerman Association for InformationTechnology, Telecommunications andNew Media (BITKOM) reaffirmed thegrowth projections for 2005 it madein March, namely a gain of 3.4 per-cent to 135.2 billion euros. The rea-son: excellent business performancein the first half of the year and theprojections made by the surveyedmember companies. Sixty-nine per-cent of the companies expect a gainin revenues this year, while one thirdforesee sales increases of more thanfive percent (15 June 2005).
The penetration rate in Germany is87.8 percent with some 72.5 millioncurrent cellphone users. A recentGartner Research Institute study onthe German wireless communicationsmarket dealt with the issue of whatthe latest growth opportunities arewithin the mobile communicationsmarket. At the top of the list werepremium services such as MMS orInternet via UMTS. Discount provi-ders are being closely watched asthese are trying to make cellphonecalling even more appealing to thecustomer, thus boosting revenues peruser – mostly at the expense of fixed-network services (16 June 2005).
Technological breakthroughs in thefield of services and terminal equip-ment, which everybody was talkingabout in first quarter – especiallyaround the time of the CeBIT trade
show – have faded from the spotlightin this year’s second quarter. TheGerman mobile communicationsmarket is now concentrating on anew market segment: low-cost provi-ders.
A veritable flood of aggressively pri-ced wireless offers hit the marketduring this first half of 2005.Numerous established mobile com-munications providers, as well asthose from outside the industry,began making discount offers availa-ble. The customer profits from twofactors in this low-cost market,namely: simple rate structures thatbring more transparency to the pri-cing jungle and absolute rock-bottomprices. In return they get a basicallyno-frills service. The cell phonesthemselves are not subsidized, whichmeans these offers pertain only tothe SIM card itself. The primary sel-ling venue is the Internet. A similaritywith low-cost airlines is quite unavoi-dable.
The A.T. Kearney consulting companyprojects these discounters will hold amarket share of from ten to twentypercent. The decisive factor here istheir ability to establish their owncontent and added value in order tostay afloat amid the powerful compe-tition (Handelsblatt, 30 June 2005).
UMTS, or 3G, continues makingheadway in Germany. The range ofUMTS-capable cell phones has incre-ased significantly. More and moreUMTS data cards for working wire-less on notebooks are being sold.
The Telecommunications- and IT-Market in Germany
Drillisch Semiannual Report 2005 5
M A R K E T E N V I R O N M E N T
Network operators still hesitate togive specific details on the number ofusers and average revenue per user.The only exception is Vodafone,which has expressed optimism.
According to company’s statementsabout 530,000 customers have used3G Services at the end of June.
6 Drillisch Semiannual Report 2005
M A R K E T E N V I R O N M E N T
Software Services
The IT market continues to showpositive performance in all sectors.Software suppliers and IT service pro-viders are reporting good businessand anticipate a renewed upswing insales during the current year (BIT-KOM, 15 June 2005).
A slight upward trend can also beseen in investment behavior. Accor-ding to a study on 2005 IT budgetsconducted by InformationWeek, it isthe German small-to-midsize-busi-ness segment that is increasingly pre-pared to invest in products, technolo-gies and services in order to maintaintheir competitiveness. One of thethings that small and midsize compa-nies are focusing on this year is opti-mizing their enterprise processes.
Second-quarter highlights includedthe Midvision/Midrange 2005 ITtrade show that was held in June inKarlsruhe and drew some 4,300 pro-fessional visitors. The show’s themeof IT innovations for small to midsizebusinesses had 131 exhibitors pre-senting multidiscipline and branch-specific IT solutions. One examplewas innovative document and work-flow solutions to structure and per-fect business processes from diversefields of application with an eye onboth practical use and cost efficiency.
As was announced in first quarter,Drillisch intensified its communica-tions with both institutional and pri-vate investors. The enhanced interestin the stock that resulted from thiseffort was reaffirmed by good quar-terly results and the guidance issuedfor fiscal year 2005. You can find thepresentations made for each road-show on our homepage at www.dril-lisch.de. We are continuing to moveforward and present the Drillischstock to a broad public in order tofurther expand our shareholder base.
The TecDAX in Second Quarter 2005The TecDAX rose 4.32 percent to548.84 points in second quarter,while the TecAll Share improved by3.40 percent to 689.93 points.
Mixed quarterly reports from themost diverse industries proved unner-ving to the stock market in Germany
at the start of second quarter. Thesituation on the international exchan-ges only got worse as a result of ner-vous liquidity situations stemmingfrom the American automobile mar-ket. The IFO index in Germany fell forthe third time in a row, which re-duced any willingness to take risks onthe stock markets.
Pessimism about the economic reco-very led to interest rates falling to ahistoric low in May. These low inter-est rates caused stocks to once againbecome a more interesting invest-ment instrument. German andEuropean stock markets broke awayfrom the sideways trend in the UnitedStates in June, as important econo-mic indicators (IFO business-climateindex, ZEW economic index) reactedto a possible change in Germany’sgovernment during early elections setfor September.
The Capital Market – 1 April 2005 to 30 June 2005
Drillisch Semiannual Report 2005 7
I N V E S T O R R E L A T I O N S R E P O R T
TecDAX – Criteria and Goals, Requirements for Admission to Index
TecDAX – Criteria and Goals, Requirements for Admission to the Index
Sales and Market Capitalization as at 31 July 2005
Drillisch Stock – Scenario for Admission to the TecDAX
TecDAX Index-Candidate Criteria:- At least rank 35 – Free-float capitalization- At least rank 35 – Trading volume over last 12 months
Drillisch Stock Held these Positions in the July Ranking List:- Market cap of rank 41 following 40 in June- Selling volume of rank 38 following 37 in June
8 Drillisch Semiannual Report 2005
I N V E S T O R R E L A T I O N S R E P O R T
The Drillisch Stock in SecondQuarter 2005
Drillisch stock suffered from investorprofit-taking in April. Share pricessank to € 3.54 from a high of € 4.34.In a subsequent period of sidewaysmovement, the stock fluctuated inMay and June between € 3.60 and € 3.90 to end the quarter at € 3.75.The average daily volume in Xetra trading was 81,058 shares, while anaverage of 32,589 were traded onthe floor of the Frankfurt StockExchange.
Second Quarter Agenda
Ad Hoc Announcements IAW § 15WpHG 17 May 2005 Quarterly profit
more than doublesas at 31 March 2005
18 May 2005 S e r v i c e - p r o v i d e ragreement signedwith O2
1 July 2005 Drillisch decides toretire up to 653,904shares of treasurystock
Investor Relations EventsJune Roadshows in
Brussels, London,Vienna and Zürich
One-on-one talks with institutionalinvestors were also conducted.
Directors’ DealingsPurchase of 50,000 shares byPaschalis Choulidis (Drillisch AGExecutive Board Spokesman)
Directors’ Holdings as at 30 June2005
Executive BoardPaschalis Choulidis,
737,400 shares ➞ 2.26 percentVlasios Choulidis,
598,984 shares ➞ 1.83 percent
Supervisory BoardDr. Hartmut Schenk 0 Johann Weindl 0 Nico Forster
1,297,879 ➞ 3.97 percentArnold Gardemann 0 Michael Müller-Berg 0 Dr. Bernd H. Schmidt
Dr. Bernd H. Schmidt was elected tothe Drillisch AG supervisory boardduring the shareholders’ meeting of27 May 2005.
Treasury Stock as at 30 June 2005Drillisch AG held no treasury stock asat 30 June 2005.
From a Drillisch Stock
Perspective
Strong rise in share
price and volume
Technical Analysis
Compared to TecDAX
Performance-Index
Sales and Marketing
Drillisch AG continues in its drive totake the lead position within themobile-communications marketwhen it comes to technology and pri-cing developments. The companywas the first in the industry to recog-nize the importance of the discountsegment and, as early as mid-April, todecisively pursue the cheapest-possi-ble prices with SIMply. By the end ofJune SIMply had sold itself to over25,000 customers with its around-the-clock flat rate of 18 euro centsper minute for calls to all Germannetworks – not to mention no basefees, no minimum contract periods,no minimum call volume and nobothersome airtime reloading.
Drillisch signed a service provideragreement with the fourth Germanmobile-communications operator O2
on 18 May. Starting in fall 2005Drillisch will be offering productsfrom all German network operators.One example of the kind of attractiveproducts O2 has to offer is Genion:the rate for those customers seekinggreater independence from fixed-linenetworks.
QuickTalk, the all-network push-to-talk service that turns cell phones intowalkie talkies, has posted very favor-able growth since its launch in Febru-ary 2005. Further-advanced softwareand greater selection of push-to-talkhandsets form a very solid basis forfurther marketing successes.
IQ-work Software AG is expanding itsrange of workflow-management sys-
tems and services through new pro-cesses, which include those for per-fecting the handling of invoices andcomplaints. In early April the en-gineering office GNUSE awarded acontract for implementing IQ-worksoftware. In late May IQ-work garne-red two new competent partnerswith the ML Group and Behrens &Schuleit allowing it to expand its IQ-work partner network.
Company Profile
Drillisch is a successful mobile-com-munications service provider. Specia-lized on Germany, Drillisch is thefourth-largest provider on (at the riskof being redundant) its domesticGerman market with an almost nine-percent share (in the service-providermarket). As the owner of contractrelationships with 1.637 million wire-less customers (as at 30 June 2005),Drillisch has the right to design andstructure its rates as it sees fit.Drillisch, with an EBITDA operatingmargin of 8.7 percent in the first half-year 2005, is one of the industry’smost profitable companies inGermany.
Customers know the company primarily through its VICTORVOX,ALPHATEL, SIMply, DIALING,QuickTalk, IQ-Work Software andDrillisch brands. Drillisch AG concen-trates on holding functions within thecorporate group. VICTORVOX AG serves contract customers (postpaid),while ALPHATEL Kommunikations-technik GmbH focuses on prepaidcustomers.
Drillisch Group Business Performance as at 30 June 2005
Drillisch Semiannual Report 2005 9
B U S I N E S S P E R F O R M A N C E
10 Drillisch Semiannual Report 2005
B U S I N E S S P E R F O R M A N C E
IQ-work Software AG develops andmarkets its proprietary workflow-management software designed tooptimize processes in companiesrepresenting the most diverse rangeof businesses and industries. Havingthis kind of IT expertise firmly ancho-red within the company is not onlyone of its most important competi-tive advantages, but also givesDrillisch cost and price leadership within the German mobile-communi-cations-service-provider market.
Staffing
There were an average of 350 indivi-duals (prior year: 373) employed in allthe group companies combined(including the executive board)during this first half-year 2005. Inaddition, the number of young peo-ple undergoing formal vocationaltraining within the group increasedto 12 (prior year: 10).
Net Worth and Financial Situation
Drillisch AG’s most remarkable attri-bute is its ability to boost shareholdervalue on a large scale through anincreasing free cash flow. TheDrillisch Group had cash and cashequivalents totaling 21.2 millioneuros at the mid-year mark. Thismeans that the company had some5.5 million euros in net cash inflowsduring the past three months, whichis more than 1.8 million euros ofadditional cash and cash equivalentseach month. Because of the highamount of cash on hand, Drillisch
cleared its bank avals as security withthe network operators at the start ofthe year. In their place it has deposi-ted 7.5 million euros directly with thenetwork operators. This move impro-ves interest earnings and eliminatesthe aval fees. Had these avals notbeen cleared, the amount of cashand cash equivalents as at 30 June2005 would have totaled just under29 million euros – almost 9 millioneuros more than at year’s end 2004.
As at 30 June 2005 the balance sheettotal had improved by 6 million eurosto 101.2 million euros compared toend-of-year 2004. This is evident onthe assets side primarily with theincrease in current assets (which alsoinclude cash and cash equivalents) of6.9 million euros to 57.3 millioneuros. The good profit situation hasleft its mark on the liabilities andshareholders’ equity side of thebalance sheet. And so shareholders’equity rose 8.2 million euros to 66.2million euros, which results in thecapital ratio improving to 65.4 per-cent. This is 4.5 percent more than at31 December 2004 and 9.9 percentmore than at the end of the samequarter a year ago.
Earnings Situation
Despite a slight slip in revenues, theprofit in the second quarter of thisfirst half-year rose substantially.During the period 1 April to 30 June,the EBITDA (earnings before interest,taxes, depreciation and amortization)surged 60.2 percent to 8.5 millioneuros. With a gain of 120.9 percent
Drillisch Semiannual Report 2005 11
B U S I N E S S P E R F O R M A N C E
to 7.5 million euros, the EBIT muchmore than doubled due to the chan-ged accounting regulations that tookeffect at the start of the year, whicheliminated regular goodwill amortiza-tion. This high level of cash led to anexcellent financial result, which iswhy the EBT (earnings before taxes)catapulted 117.2 percent to 7.8 mil-lion euros. At 4.7 million euros, theperiod earnings, or net income insecond quarter 2005, was 115.7 per-cent higher than that of the com-parable year-earlier quarter.
On a year-to-date basis, revenues inthe first half-year of 2005 declined4.8 percent to 161.9 million euroscompared to the first half-year 2004.The EBITDA rose 40.4 percent to 14.1million euros, the EBT increased 97.2percent to 12.8 million euros andmid-year earnings improved 117.6percent to 7.6 million euros. In turnthe earnings per share advancedfrom 0,10 euros to 0,23 euros.
Outlook
The outstanding business perfor-mance during the first half of 2005gives the Drillisch executive boardreason to significantly raise its ear-nings guidance for the full 2005 fiscalyear. With 1.7 million customers, weexpect revenues of almost 350 mil-lion euros. Thanks to the optimizedcustomer structure and the successfulwinning of new customers, particu-larly through the innovative SIMplyproduct, we now anticipate an EBITDA of 27.5 million euros. In Maywe were looking at an EBITDA for
2005 of 24 million euros. We expectan EBT of 24.5 million euros for thefull 2005 year – 3.5 million more thanthat of our May forecast. We areaiming to distribute a dividend in theamount of 0.31 euros per share inview of earnings per share expectedto be considerably higher than lastyear’s 0.20 euros (based on a corres-ponding number of shares).
Risk Assessment
Business activities go hand in handwith inherent risks. A company’s suc-cess is determined by the kind ofcare, foresight, creativity and skillswith which risks are confronted andturned into opportunities. TheDrillisch Group has a qualified risk-management system in place.
During this first half-year the risk situ-ation remained unchanged from thatof last year. Adequate precautionsand steps have been taken to handleany probable risk.
The risk to earnings has been reducedthrough increased margins per custo-mer. An efficient credit-check systemprevents major instances of delin-quencies and bad debt. A capitalratio of 65.4 percent, no bank debts,and cash and cash equivalents tota-ling 21.2 million euros put DrillischAG on the kind of solid footing foundin only very few companies on theGerman capital market.
Interim Consolidated Financial Statements as at 30 June 2005
Consolidated Balance Sheet
ASSETS
30.06.2005 31.12.2004TEUR TEUR
Current assets
Cash and cash equivalents 21,168 19,652
Trade accounts receivable 17,408 15,482
Receivables from affiliated companies 58 44
Inventories 6,416 8,325
Tax reimbursement entitlements 1,499 1,298
Other current assets and prepaid expenses 10,758 5,586
Total current assets 57,307 50,387
Medium and long-term assets
Property, plant and equipment 2,157 2,150
Software 4,709 4,160
Investments . .
Goodwill 34,572 34,572
Deferred taxes 2,436 3,947
Total medium and long-term assets 43,874 44,829
TOTAL ASSETS 101,181 95,216
12 Drillisch Semiannual Report 2005
I N T E R I M C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Drillisch Semiannual Report 2005 13
I N T E R I M C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Interim Consolidated Financial Statements as at 30 June 2005
Consolidated Balance Sheet
LIABILITIES AND SHAREHOLDERS’ EQUITY
30.06.2005 31.12.2004
TEUR TEUR
Current liabilities
Lease obligations 238 0
Trade accounts payable 17,139 18,629
Advances from customers 11,359 10,573
Tax liabilities 1,115 789
Accrued expenses 2,083 585
Deferred income 1,100 1,202
Other liabilities 1,538 5,194
Total current liabilities 34,572 36,972
Medium and long-term liabilities
Lease obligations 155 0
Deferred taxes 298 254
Total medium and long-term liabilities 453 254
Shareholders’ equity
Subscribed capital 34,951 34,600
Capital reserve 25,458 25,282
Net loss (profit) 5,747 -1,892
Total shareholders’ equity 66,156 57,990
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 101,181 95,216
14 Drillisch Semiannual Report 2005
I N T E R I M C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Interim Consolidated Financial Statements as at 30 June 2005
Consolidated Income Statement
I-II/ I-II/ II/ II/ I/ I/2005 2004 2005 2004 2005 2004TEUR TEUR TEUR TEUR TEUR TEUR
Revenues 161,891 170,138 83,322 86,398 78,569 83,740
Other own costs capitalized 964 256 424 179 540 77
Other operating income 1,967 2,437 731 1,238 1,236 1,199
Cost of purchased materials and services -131,255 -140,303 -66,070 -71,126 -65,185 -69,177
Personnel expenses -9,122 -9,610 -4,510 -4,715 -4,612 -4,895
Other operating expenses -10,360 -12,885 -5,428 -6,686 -4,932 -6,199
Depreciation and amortization -1,804 -3,789 -920 -1,871 -884 -1,918
Operating income 12,281 6,244 7,549 3,417 4,732 2,827
Financial result 472 223 223 162 249 61
Earnings before taxes 12,753 6,467 7,772 3,579 4,981 2,888
Income taxes -5,114 -2,956 -3,104 -1,415 -2,010 -1,541
Consolidated net income 7,639 3,511 4,668 2,164 2,971 1,347
Undiluted earnings per share in euros 0.23 0.10 0.14 0.06 0.09 0.04
EBIT 12,281 6,244 7,549 3,417 4,732 2,827
EBITDA 14,085 10,033 8,469 5,288 5,616 4,745
Drillisch Semiannual Report 2005 15
I N T E R I M C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Interim Consolidated Financial Statements as at 30 June 2005
Consolidated Cash Flow Statement
I-II/2005 I-II/2004TEUR TEUR
Earnings before income taxes 12,753 6,467
(Tax payments) Tax reimbursements -3,435 -50
Depreciation and amortization of fixedand intangible assets 1,804 3,790
Income from disposal of assets 0 -2
(Increase) Decrease in inventories 1,910 1,603
(Increase) Decrease in receivables and other assets -7,112 22,487
(Increase) Decrease in trade accounts payableand other liabilities and accrued expenses -3,748 -20,374
Increase (Decrease) in advances from customers 785 -7,310
Cash inflow from (used in) operating activities 2,957 6,611
Investments in tangible fixed assets and software -2,361 -547
Income from disposal of assets 0 2
Cash inflow from (used in) investing activities -2,361 -545
(Purchase) Sale of treasury stock 527 -474
Increase (Decrease) in investment liabilities 393 -109
Repayment of bank loans 0 -38
Cash flow from (used in) financing activities 920 -621
Change in cash and cash equivalents 1,516 5,445
Cash and cash equivalents at end of period 21,168 15,393
Cash and cash equivalents at beginning of period 19,652 9,948
Change in cash and cash equivalents 1,516 5,445
16 Drillisch Semiannual Report 2005
I N T E R I M C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Interim Consolidated Financial Statements as at 30 June 2005
Consolidated Statement of Changes in Shareholder’s Equity
Number Sub- Capital Net Totalof shares scribed reserve loss/
capital profit
TEUR TEUR TEUR TEUR
Balance as at 01.01.2004 34,951,036 34,951 30,084 -13,922 51,113
Change in treasury stock -351 -123 0 -474
Consolidated net income 0 0 3,511 3,511
Balance as at 30.06.2004 34,951,036 34,600 29,961 -10,411 54,150
Balance as at 01.01.2005 32,344,255 34,600 25,282 -1,892 57,990
Sales of treasury stock 350,985 351 176 0 527
Consolidated net income 0 0 0 7,639 7,639
Balance as at 30.06.2005 32,695,240 34,951 25,458 5,747 66,156
Drillisch Semiannual Report 2005 17
I N T E R I M C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
Interim Consolidated Financial Statements as at 30 June 2005
Notes to the Consolidated Financial Statements
The scope of companies included in these interim consolidated financial state-ments changed from that of the consolidated financial statements for fiscalyear 2004 only insofar as the company in liquidation Forster Kommunikations-elektronik GmbH i.L of Munich is no longer included in the consolidation.These interim consolidated financial statements were prepared according toInternational Financial Reporting Standards (IFRS). Except for the following,the same accounting and valuation methods were used as in the consolidatedfinancial statements of 31 December 2004. In accordance with IFRS 3, amor-tization of goodwill will no longer be made starting 1 January 2005. The ear-nings for the first half-year 2004 were burdened by goodwill amortization inthe amount of TEUR 1,930.
An additional 87.265 shares were sold at a price of EUR 1,50 per share as partof an employee pro-gram in second quarter 2005. This means that Drillisch AGheld no shares of treasury stock as at 30 June 2005.
Revenues and operating earnings by segment were as follows:
I-II/2005 I-II/2004
Revenues Net Revenues Netearnings earnings
or loss or loss
Telecommunications 161.8 Mio. EUR 12,531 TEUR 170.1 Mio. EUR 7,088 TEUR
Software Services 0.1 Mio. EUR -250 TEUR 0.0 Mio. EUR -844 TEUR
18 Drillisch Semiannual Report 2005
S E R V I C E C O R N E R
Financial and Events Calendar
2005 Semiannual Report Monday, 15 August 2005
9-Month Report 2005 Wednesday, 9 November 2005
Deutsches Eigenkapitalforum Monday, 21 November 2005
PublicationsThis 2005 Semiannual Report is also available in German.
You can read and download our annual reports, quarterly reports, ad hocannouncements and other disclosures and publications about Drillisch AG atwww.drillisch.de.
Your ContactsOur Press & Investor Relations department will be happy to assist you shouldyou have any questions about Drillisch AG or any of its publications:
Paschalis Choulidis, Drillisch AG Executive Board Spokesman
Oliver Keil, Investor RelationsStefan Otto, Investor Relations
Drillisch AGWilhelm-Röntgen-Straße 1-563477 Maintal, Germany
Tel.: + 49 (0) 0 61 81 / 412 200Fax: + 49 (0) 0 61 81 / 412 184
Iris Hauk, Corporate Communications
Drillisch AGDießemer Bruch 10047805 Krefeld, Germany
Tel.: + 49 (0) 21 51 / 5495 216Fax: + 49 (0) 21 51 / 5495 222
E-Mail: [email protected]
Information and Ordering ServicePlease use our online ordering service under the Investor Relations tab on ourwebsite www.drillisch.de. We will also gladly forward you the desired infor-mation by fax or letter mail. We are also available by phone for any personalinquiries you may have.
Drillisch Semiannual Report 2005 19
Corporate Headquarters: Wilhelm-Röntgen-Straße 1-5 · 63477 Maintal Telephone: + 49 (0) 61 81 / 412 3 Telefax: + 49 (0) 61 81 / 412 183
Responsibility:Drillisch AG
Executive Board:Paschalis Choulidis (Spokesman)Vlasios Choulidis
Supervisory Board:Dr. Hartmut Schenk (Chairman)Johann Weindl (Deputy Chairman)Nico ForsterArnold Gardemann (until 21 July 2005)Michael Müller-BergDr. Bernd H. Schmidt (since 27 May 2005)
Investor Relations Contact:Telephone: + 49 (0) 61 81 / 412 200Telefax: + 49 (0) 61 81 / 412 184E-Mail: [email protected]
Commercial Registry: HRB 7384 HanauValue-Added Tax ID: DE 812458592Income Tax ID: 03522506037 Revenue Office Offenbach-Stadt
Disclaimer:Although we have carefully examined the information contained in this publication, we cannotwarrant that all information is portrayed completely, accurately or in its most current version at alltimes.
Forward-Looking StatementsThis report contains certain forward-looking statements that are based on current assumptionsand projections by the management of the Drillisch Group. Various known and unknown risks,uncertainties and other factors could lead to actual results, the financial situation and the deve-lopment or performance of the company varying materially from the estimates described herein.These factors include those we have stated in reports to the Frankfurt Stock Exchange and to theAmerican Securities and Exchange Commission (incl. Form 20-F). The company assumes no obli-gation whatsoever to expand on these forward-looking statements or to adjust or adapt them tofuture events or developments.
Imprint
S E R V I C E C O R N E R
Drillisch AG Maintal www.drillisch.de Tel.: + 49 (0) 6181/412-3 Fax: + 49 (0) 6181/412-183
VICTORVOX AGKrefeld
Integrated One-Shop SupplierUniting the Internet and Mobile-Communications Growth Markets
www.victorvox.de
Tel.: + 49 (0) 2151/54 95-0Fax: + 49 (0) 2151/54 95-220
IQ-work Software AGMaintal
Content and Billing SolutionsWorkflow Management SystemsPIM & CRM
www.iq-work.de
Tel.: + 49 (0) 6181/908-725Fax: + 49 (0) 6181/908-733
Additional equity interests in other smaller companies.
100% subsidiaries
Alphatel Kommunikationstechnik GmbHMaintal
Exclusive Transactions / Business Clients
Partnerships
Network-Operator Rates for the T-Mobile, Vodafone and E-PlusNetworks
www.alphatel.de
Tel.: + 49 (0) 6181/412-3Fax: + 49 (0) 6181/412-444
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