Press Conference on Annual Financial Statements / All for One Midmarket AG

Filderstadt, 24 March 2009 – At the Press Conference on Annual Financial Statements on 24 March 2009, All for One Midmarket AG issued its annual report 2008. The realignment towards becoming a leading IT service provider for SAP in the German-speaking midmarket sector that began in 2007 continued to make giant steps: The management board was reorganised, the ACCURAT division was sold, new business divisions and an integrated business model were established, and the corporate financing was placed on a new footing. The former AC-Service AG was renamed All for One Midmarket AG, the holding company and largest subsidiary were combined to form a new lead operating company. What’s more, this growth-based corporate restructuring also led to the relocation of more than half of all the employees to four new office buildings and two data center facilities.

However, this leading full-service provider for SAP in countries where German is spoken continued its robust growth and achieved a 9% increase in annual revenues. Due to record investments of EUR 6.4 million (prior year: EUR 2.9 million) in new mirrored high-end data centers amongst others, the recurring revenues from Outsourcing Services (plus 18% cormpared to 2007) proved to be the growth drivers and already account for more than 1/3 of total revenues. Significant increases were also posted in revenues from software licenses (plus 13%) and consulting services (plus 12%). 69% of the Group’s total revenues came from Germany (+14% compared to the prior year), 5% from Austria (+35% compared to the prior year) and 19% from Switzerland (minus 1% compared to the prior year). The prior-year revenue figures for Switzerland include large one-time revenues from hardware-related projects, which led to Switzerland posting a record year in 2007.

In mid-2008 All for One Midmarket AG embarked on a path of consolidation after what has been an uninterrupted three-year phase of strong sales growth during which revenues almost doubled from EUR 45.7 million (2005) to EUR 85.2 million (2008) and the number of employees increased dramatically from 302 (2005 average) to 487 (2008 average; year-end 2008: 503 employees). This consolidation phase will concentrate on enhancing the integration of human resources and processes in order to gradually achieve sustained profitability. Eliminating the high one-time expenses (EUR 1.3 million) from relocating and corporate restructuring that had burdened earnings in 2008 will also have an increasingly favourable effect on profits. After an EBIT 2008 of EUR minus 0.8 million (prior year: EUR 1.4 million) the EBIT for 2009 should be positive.