Presse release

Wiesbaden, November 8, 2007

P&I: Profit increase with sales growth for the first half year of fiscal 2007/2008

  • Sales increased by 6 million to 30 million euros
  • EBIT margin at 22.5 per cent
  • Software licensing sales risen by 71.4 %

In the first 6 months of the 2007/2008 fiscal year (April 1 to September 30, 2007), the P&I group attained earnings before interest and taxes (EBIT) of 6.7 million euros (same period previous year 4.7 million euros), increasing the EBIT margin from 19.4 to 22.5 %. Total sales increased by 24.8 % to 30 million euros. This includes software licensing sales of 9.8 million euros, which have increased by an impressive 71.4 % compared to the previous year’s sales level. In the earnings after tax (EAT), the P&I group reports an improvement from 3.2 million to 4.7 million euros. The earnings before depreciation (EBITDA) increased from 6.3 to 8.5 million euros. This confirms the corporation’s interim result released on October 31, 2007.

The P&I share price continued to show positive development up to mid-year. It began at 18 euros and finished at the end of September 2007 at 20.90 euros. Taking into account the dividend payment of 1 euro during the same period, the share price increased by 21 per cent.

After a very strong first quarter in sales and results, P&I was again able to increase sales from the first to second quarter by a double-digit percentage, from 12.5 million to 14.3 million euro. The operative result in the second quarter amounts to 2.4 million euros and is charged with a special item from a share-based payment system. An operative result of 6.7 million euros in the first 6 months and an EBIT margin of 22.5 per cent makes P&I one of the successful companies in the IT business.

Striking increase in the licensing and consulting business segment have been crucial for sales growth in the first 6 months of fiscal 2007/2008.

Licensing sales increased from the previous year from 4.1 to 9.8 million euros. In addition to sales from a long-term project overseas, in the second quarter many projects with new customers in the domestic market again played a role. Licensing share of total company sales amounts to 33 per cent.

In the maintenance business, sales of 10.9 million euros were achieved. This means an increase of 0.9 million euros or 8.5 per cent compared to the same time period in the previous year. This business area contributes 36 per cent of company sales.

The service business increased by 12.4 per cent or 0.9 million euros. With sales of 8.6 million euros (previous year 7.7 million euros), P&I attained 29 per cent of its sales from the consultancy/SI business.

„In the second quarter, licensing sales have also increased in double-digit figures. The results in the first six months are according to plan“, announced Vasilios Triadis, P&I’s CEO. „State-of-the-Art technology, high quality and absolute on time delivery are our standards. We are convinced of P&I’s enduring success and will work consistently to achieve our growth strategy.“

At the same time, P&I confirmed the forecast for the end of the 2007/2008 fiscal year, with the intention of increasing sales by approximately 10 per cent via organic growth and establishing the EBIT margin above 20 per cent.

The P&I Group in figures:

Key Figures acc. to IAS / September 30, 2007
'000 euros / September 30, 2006
'000 euros / Change
'000 euros / Change
%
Group sales / 30,022 / 24,062 / 5,960 / 24.8 %
EBITDA / 8,477 / 6,310 / 2,167 / 34.3 %
EBIT / 6,741 / 4,660 / 2,081 / 44.7 %
EBT / 6,836 / 5,244 / 1,592 / 30.4 %
Consolidated result DVFA/SG / 4,725 / 3,201 / 1,524 / 47.6 %
Return on Sales / 15.7 % / 13.3 % / . / . / . / .
EPS (DVFA/SG) / 0.61 € / 0.42 € / 0.19 € / 45.2 %
BQU ()* / 292 / 266 / 26 / 9.8 %
BQU (Colsing Day** / 288 / 276 / 12 / 4.5 %

*Number of Employees in average period

**Average employment quotient in average period on closing day

Sales segmentation

Sales
/
April 1, to September 30, 2007
/
April 1, to September 30, 2006
/
April 1, to September 30, 2005
'000 euros /
share
/ '000 euros /
share
/ '000 euros /
share
Sales according to category
Licences / 9,787 / 33 % / 5,709 / 24 % / 5,794 / 26 %
Maintenance / 10,921 / 36 % / 10,071 / 42 % / 9,064 / 41 %
Product line / 20,708 / 69 % / 15,781 / 66 % / 14,858 / 67 %
Consulting / 8,604 / 29 % / 7,658 / 32 % / 6,835 / 31 %
Other* / 710 / 2 % / 624 / 2 % / 561 / 2 %
Total / 30,022 / 100 % / 24,062 / 100 % / 22,254 / 100 %
Geographical segment
Germany (domestic) / 22,127 / 74 % / 20,360 / 85 % / 19,423 / 87 %
International (foreign) / 7,895 / 26 % / 3,702 / 15 % / 2,831 / 13 %
Total / 30,022 / 100 % / 24,062 / 100 % / 22,254 / 100 %

*comprises Third Party and ASP (Application Service Providing)

Find out more about P&I AG on the Internet:

Press contact:

P&I AG

Andreas Granderath / Investor Relations

Kreuzberger Ring 56

65205 Wiesbaden

Tel.: +49 (0) 611 / 7147-267

Fax: +49 (0) 611 / 7147-369

E-Mail:

P&I Your Partner for integrated HR Solutions

(ISIN: DE 0006913403)

P&I is with more than 3,700 clients from all sectors one of the leading suppliers of innovative human resources management software solutions. P&I solutions encompass the entire spectrum of human resources management. P&I products can be used internationally and in all sectors. With its long-term experience, P&I is a reliable partner for system integration and system implementation. Moreover, clients also benefit from the advisory and training services offered by the P&I Academy.

The company has more than 300 employees. The head office is located in Wiesbaden. In Germany, services are provided to our clients from five regional offices. P&I is present in other European countries both through national companies (in Switzerland and in Austria) and through cooperation partners. P&I is listed in the Prime Standard on the Frankfurt stock exchange.