quarterly financial report 2009 | 2010 · ebita € 000s 206 -163 +227% 802 398 +101% ... this...

2

Quarterly Financial

report 2009 | 2010

contents

Interim Status Report 2 2009/2010

04 General

05 GroupBusinessActivityandStructure

05 MarketandCompetitiveEnvironment

06 BusinessDevelopmentandGroupSituation

10 RisksandOpportunities

11 MajorEventsaftertheBalanceSheetDate

11 Forecast

Consolidated Quarterly Report 2 2009/2010

12 ConsolidatedBalanceSheets

13 ConsolidatedStatementsofOperations

13 ConsolidatedStatementsofComprehensiveIncome

14 ConsolidatedStatementsofShareholders’Equity

16 ConsolidatedStatementsofCashFlows

17 Notes

25 Events&ContactInformation

Key Figures of the SinnerSchrader Group

in€000s,€,andnumber Q2

2009/2010

Q2

2008/20091)

Change H1

2009/2010

H1

2008/20091)

Change

Revenues €000s 6,347 6,640 -4% 13,481 13,949 -3%

Totalrevenues,net €000s 5,332 4,813 +11% 11,267 10,393 +8%

Grossprofit €000s 1,600 1,303 +23% 3,676 3,071 +20%

EBITDA €000s 341 -35 +1067% 1,062 663 +60%

EBITA €000s 206 -163 +227% 802 398 +101%

Netincome €000s 32 -367 +109% 414 48 +758%

Netincomeattributabletothe

shareholdersofSinnerSchraderAG €000s 32 71 -55% 414 486 -15%

Netincomepershare € 0.00 0.01 -52% 0.04 0.04 -13%

Cashflowsfromoperatingactivities €000s 1,094 1,253 -13% 2,279 1,035 +120%

Employees,full-timeequivalents number 268 249 +8% 263 232 +13%

28.02.2010 30.11.2009 Change 28.02.2010 31.08.2009 Change

Cashandcashequivalents €000s 8,971 9,068 -1% 8,971 7,988 +12%

Employees,endofperiod number 294 280 +5% 294 279 +5%

1)AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe2008/2009financialyear

EMPLOYEE StRuCtuRE bY SEgMEnt

INAvERAGENuMBEROFFull-TIMEEMplOyEESFORH12009/2010COMpAREDTOH12008/2009

prev.year=H12008/2009

23.524.6

Holding

3.31.0

InteractiveCommerce

215.9193.0

InteractiveMarketing

20.013.0

InteractiveMedia

EMPLOYEE StRuCtuRE bY AREAS Of ExPERtISE

INAvERAGENuMBEROFFull-TIMEEMplOyEESFORH12009/2010

Administration

31.5(prev.year:31.2)

Technology(incl.operations)

121.1(prev.year:104.3)

Creation


Consultancy(incl.media)


262.7(prev.year:231.6)

DEvELOPMEnt Of OPERAtIng COStS AnD EbItA

IN%OFNETREvENuES

7.1 % 3.8 %

1.8 % 1.2 %

15.6 % 18.1 %

8.2 % 6.4 %

67.3 %

EBITA

R&Dexpenses

Generalandadminis-trativeexpenses

Sellingandmarketingexpenses

Revenuecosts70.5 %

H108/09 H109/10

RECOnCILIAtIOn Of EbItA tO nEt InCOME

IN€000SFORH12009/2010

802 –323 52 –117 414

EBITA Amortisationofintangibleassetsfrom

acquisitions

Financialincome

Taxesonincome

Netincome

DEvELOPMEnt Of nEt REvEnuES AnD nEt REvEnuE MARgIn

IN€000SAND%

10,393 7.4 % 1)

3.8 %

10,543 15.6 % 1)

9.9 %

11,267 13.5 % 1)

7.1 %

8,4769.7 %

H107/08 H207/08 H108/09 H208/09 H109/10

9,87115.0 %

1)Beforecosts/start-uplossesforexpansionofserviceportfolio

nEt REvEnuES bY SEgMEnt

IN€000SFORH12009/2010COMpAREDTOH12008/2009

–289

Holding/Consolidation

229

InteractiveCommerce

10,5309,636

InteractiveMarketing

797757

InteractiveMedia

nEt REvEnuES bY SECtOR

IN%FORH12009/2010

Retail&ConsumerGoods

42.4 (prev.year:31.6)

FinancialServices

22.6 (prev.year:26.5)

Media&Entertainment

2.1 (prev.year:4.2)Transport&Tourism

12.2 (prev.year:15.0)

Telecommunications&Technology

17.1 (prev.year:19.4)

prev.year=2008/2009financialyear

Other

3.6 (prev.year:3.3)

4 INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG

interim Status report as of 28 February 2010

1 general

ThisInterimStatusReportoftheSinnerSchrader

Group(“SinnerSchrader”or“Group”)asof28Febru-

ary2010representsthedevelopmentoftheincome,

financial,andassetsstatusofthegroupwhichisman-

agedbySinnerSchraderAktiengesellschaft(“Sinner-

SchraderAG”or“AG”)inthefirsthalfandthesecond

quarterofthe2009/2010financialyearfrom1Sep-

tember2009and1December2009,respectively,to

28February2010.Itdealswiththemajorrisksand

opportunitiesandtheprobablefuturedevelopmentof

businessintheremainingfinancialyear.

Theconsolidatedfinancialstatementsonwhichthis

statusreportisbasedweredrawnupaccordingtothe

InternationalFinancialReportingStandards(“IFRS”).

TheInterimStatusReport,particularlySection7,

containsstatementsandinformationaimedatthe

future.Suchforward-lookingstatementsarebased

oncurrentknowledge,estimates,andassumptions

andthereforeentailanumberofrisksanduncertain-

ties.Avarietyoffactors,manyofwhichareoutside

SinnerSchrader’ssphereofinfluence,haveanimpact

onbusinessdevelopmentandresults.Thesefactors

meanthattheactualfuturebusinessdevelopmentof

SinnerSchraderandtheactualresultsachievedmay

differsignificantlyfromtheexplicitorimplicitinforma-

tionintheforward-lookingstatements.

Thisquarterlyfinancialreportshouldbereadincon-

junctionwiththeConsolidatedFinancialStatementsof

SinnerSchraderAG.

5INTERIMSTATuSREpORT22009/2010OFSINNERSCHRADERAG

2 group business Activity and Structure

TheSinnerSchraderGroupisaninteractiveagency

whichofferscompaniesacomprehensiverangeof

servicesfortheuseofinteractivetechnologiesto

optimiseandfurtherdeveloptheirbusiness.The

emphasisisontheuseoftheInternetforthesaleof

goodsandservices(e-commerce),formarketingand

communication,andfortheacquisitionandretention

ofcustomers.

SinnerSchraderisoneofthebiggestindependent

interactiveagencygroupsinGermanyandprovides

itsservicesfromofficesinHamburgandFrankfurtam

Main.SinnerSchradermainlyworksforcompanies

basedinGermany,butalsoincludescompaniesfrom

Denmark,theuK,France,andMoroccoamongits

clients.

ThecompositionoftheGrouphasnotchanged

againstthestatusasof31August2009.Inaddition

toSinnerSchraderAG,theGroupcomprisesSinner-

SchraderDeutschlandGmbH,spot-mediaAGand

itssubsidiaryspot-mediaconsultingGmbH,the

newtentionGroup,comprisingnewtentiontechnolo-

giesGmbHandnewtentionservicesGmbH,aswellas

nextcommerceGmbH.Furthermore,theoperatively

inactivecompaniesSinnerSchraderuKltd.inlondon

andSinnerSchraderBeneluxBvinRotterdamarealso

partoftheconsolidationgroup.

Inthefirstquarterofthepreviousyear,thenewtention

GroupandnextcommerceGmbHwerenotyetpartof

theSinnerSchraderGroup.ThenewtentionGroupwas

takenoverinthesecondandthirdfinancialquartersof

the2008/2009financialyear;nextcommerceGmbH

wasfoundedinMay2009.

TheSinnerSchraderGroupstructuresitsbusiness

activityinthesegmentsInteractiveMarketing,Inter-

activeMedia,andInteractiveCommerce.Servicesin

theInteractiveMarketingsegmentareprovidedby

Sinner-SchraderDeutschlandGmbHandthespot-

mediaGroup.TheonlinemediabusinessofSinner-

SchraderDeutschlandGmbHandthenewtention

GrouparebroughttogetherintheInteractiveMedia

segment.TheInteractiveCommercesegmentis

coveredbynextcommerceGmbH.

3 Market and Competitive Environment

InthemonthsofSinnerSchrader’ssecondfinancial

quartertherewerenosignalswithrespecttothe

developmentoftheeconomyasawholeandthesec-

torspecificallythatthepreviousexpectationsofthe

marketandcompetitiveenvironmentinwhichSinner-

Schraderoperateshavechangedforthe2009/2010

financialyear.

TheforecastsforthedevelopmentoftheGerman

economyin2010havestabilisedatgrowthexpect-

ationsofbetween1.5%and2.0%fortheprice-adjusted

grossdomesticproduct.Inprinciple,thisexpectationis

agoodbasisforanincreasedwillingnessbycompanies

toinvestinthedevelopmentoftheirbusinesses.

Butthereiswidespreaduncertaintyabouttheopen

questionastohowtomanagethenationaldebt

amassedduringthecrisisandarisingfromthefear

thatthehighindebtednessofindividualcountriesis

alreadypresagingthenextfinancialcrisis.Addedto

thisareconcernsaboutapossibleclampdownon

creditcausedbychangesinthebankinglandscape

andmorestringentregulationofthebanksandabout

aresultantboomandbustonthecapitalmarkets.

Negativesurprisescanthereforenotbecompletely

ruledoutinthemonthsaheadeither.


However,theengineofdevelopmentatSinnerSchrader

ismuchlessgeneraleconomictrendsthanthedy-

namicsoftheprocessofchangeinmarketingtowards

theInternetastheleadmediumforallmarketing

activities.In2009thisprocessofchangeensured

thatSinnerSchraderandotherinteractiveagencies

experiencedtheimpactofthefinancialandeconomic

crisisonlytoacomparativelyslightdegree.Growth

forecastsof14%forthegrossvolumeoftheGerman

onlineadvertisingmarket(OvKOnlineReport2010,

No.1)areanindicationthatthisprocesswillcontinue

apacein2010.Numerouscontactswithcustomers

alsogivetheimpressionthatmanycompanieswill

investinexpandingtheironlinemarketingplatforms

andstructuresinthecurrentcalendaryear.

4

Thepositiveoverallimageisunderpinnedbyanoper-

atingcashflowof€2.3million;acomparativelyhigh

levelofdepositpaymentswerereceivedtocontribute

tothis.

4.1 Revenues, Incoming Orders, and

Price Development

Inthesecondfinancialquarterof2009/2010,Sinner-

Schraderearnednetrevenuesof€5.3millionand

achievedgrowthof10.8%incomparisontothe

secondquarterofthepreviousyear.Thegrowthdy-

namicshavethusincreasedfurther,asplanned,after

agrowthrateof6.4%wasachievedinthefirstquarter

of2009/2010.Asinpreviousyears,netrevenueswere

10.1%belowthoseearnedinthefirstquarterdue

tofarfeweravailableworkinghoursbecauseofthe

publicholidaysandannualleaveatChristmasandthe

Newyear.

Withnetrevenuesof€4.9million,theshareofrev-

enuesfromtraditionalbusinessinprojectandoperat-

ingservices,whichisoperatedunderthetwobrands

SinnerSchraderandspot-media,wasover90%.

Revenuesinthissegmentroseby10.5%inthequar-

tercoveredbythereport.Incomingordersdeveloped

evenmoredynamicallyandexceededthevalueofthe

samequarterofthepreviousyearbyjustunder15%,

mainlyduetostrongdemandforconsultancyand

implementationexpertiseinthefieldofe-commerce.

IntheInteractiveMediasegment,whereSinner-

Schraderoffersperformancemediaandadserving

serviceswiththebrandsmediabyandnewtention,

quarterlyrevenuesinthesecondfinancialquarter

were€0.4million.Thisrepresentedariseoverthe

previousyearof12.9%whichwasprimarilycaused

bytheslowbutsteadyestablishmentofbusinessat

newtention.

business Development and group Situation

Inagenerallybenignbusinessenvironment,Sinner-

Schradercontinueditspositivebusinessdevelopment

inthesecondfinancialquarterof2009/2010:Itsnet

revenuesof€5.3millionwerearound11%higher

thanthoseofthepreviousyear;at€0.2million,the

EBITAwasjustunder€0.4millionmorethanthatof

thepreviousyear.Duetotheusualseasonal

factors,thevaluesoftheprecedingfirstquarter

werenotachieved.

unlikeinthepreviousyear,SinnerSchraderisclosing

thefirsthalfofthefinancialyearwithrevenuegrowth

ofagood8%andadoublingoftheoperatingresult.

Thegooddevelopmentwasdrivenbybusinessinthe

InteractiveMarketingsegment,whereSinnerSchrader

achievedrevenuegrowthof9%.Incomingorders

inthissegmentactuallyexceededthevaluesofthe

previousyearbyjustunder16%.

ThegoodprofitdevelopmentintheInteractiveMarket-

ingsegmentmeantthatthecontinuedstart-uplosses

inthebusinessfieldsofadservingande-commerce

outsourcing,whichwerelaunchedinthe2008/2009

financialyear,couldbecovered;inthefirsthalfofthe

yeartheytotalled€0.7million.


TheInteractiveCommercesegmentcontributed

€0.1milliontothetotalrevenuesinthequarterof

thereport.Oneyearagothissegmentwasstillbeing

established:nextcommerceGmbHstarteditsbusi-

nessactivitiesinJune2009andsuccessfullylaunched

thefirstonlineshopfortheOlsenfashionbrandin

mid-October.

Accumulatedforthefirsthalfof2009/2010,thenet

revenuesoftheSinnerSchraderGroupamounted

to€11.3million,aftertotalling€10.4millionand

€10.5millioninthefirstandsecondhalfof2008/2009,

respectively.Incomparisontothesameperiodinthe

previousyear,thisisagrowthrateof8.4%.

TheInteractiveMarketing,InteractiveMedia,and

InteractiveCommercesegmentscontributed€10.5

million,€0.8million,and€0.2million,respectively,to

thenetrevenuesinthefirsthalfof2009/2010;€0.3

millionhadtobeeliminatedforbusinesswithinthe

Group.

IntheInteractiveMarketingsegment,thegrowthover

thepreviousyearwas9.3%.Givenoverallstable

businesswithexistingcustomers,thisgrowthimpetus

wastheresultofapleasingexpansionofthecustomer

base,whichwasmoredynamicthaninpreviousyears.

Forexample,theSinnerSchraderagencywonanorder

fromtheOTTOGrouptodesignandimplementthe

newonlineshoeshopmirapodo.deandalsoreceived

firstordersfromREWE,HeineversandandRadio

Hamburg.spot-mediaAGwonthecontracttomanage

theonlineactivitiesoftheHamburgduty-freeshop

operatorGebr.Heinemann.Theproportionofbusi-

nesswithcustomerswithwhomtherehadnotbeena

businessrelationshipinthecomparableperiodofthe

previousyearthusaccountedforalmost12%ofthe

Group’snetrevenues.Oneyearago,theratewasonly

agood7%.

TheInteractiveMediasegmentmaintainedrelatively

constantnetrevenuesinthefirsthalfof2009/2010

incomparisontothepreviousyear.Therevenues

fromtheadservingbusinessofthenewtentionGroup

balancedoutdeclinesintheperformancemedia

businessresultingfromcutsinthegrossadvertising

budgetofasinglecustomercausedbytheeconomic

climate.Asaconsequenceofthesecuts,theGroup’s

grossrevenuesinthefirsthalfofthefinancialyear

werealsoagood3%belowthevalueoftheprevious

year.Attheendofthehalf-yearcoveredbythereport,

ahigh-potentialnewcustomerwasacquiredinthe

performancemediabusiness,forwhomSinner-

Schraderstartedtoworkatthestartofthesecond

halfoftheyear.

TherevenuesintheInteractiveCommercesegment

couldstillnotbecomparedwithanyrevenuesfrom

thefirsthalfofthepreviousyear.Here,too,business

withnewcustomersbecamemoredynamicattheend

ofthefirsthalfof2009/2010,withtheresultthatthe

acquisitionofasecondcustomerprojectinthethird

quarterof2009/2010isnotunlikely.

Inthedistributionbysectors,agood42%ofthenet

revenuesinthefirsthalfof2009/2010wasaccounted

forbycustomersfromtheRetail&ConsumerGoods

sector,justunder23%byFinancialServicescustom-

ers,17%bytheTelecommunications&Technology

sector,and12%bycompaniesintheTransport&

Tourismsector.Theremaining6%isspreadacross

othersectors,includingMedia&Entertainmentand

Health&Education.Thismeansthattheproportionof

revenuesfromtheRetail&ConsumerGoodssector

continuedtorise;thissectorisconcentratingmost

consistentlyonexpandingitsonlineactivities.

Thetenbiggestcustomersaccountforjustunder

83%oftherevenues,whichisslightlybelowthe84%

ofthewholepreviousyearbutisonceagainabovethe

valueof79%inthefirstquarter.Inthecomparable

halfof2008/2009,however,thesharewasover87%.

Thebroadeningofthecustomerbaseisthustaking

effectwithrespecttoaslightreductionindependency

onthetenbiggestcustomers.

4.2 Operating Result

Inthesecondquarterofthe2009/2010financial

year,SinnerSchraderachievedanoperatingresult

(EBITA)of€206,000,whichwas€368,000higher

thantheoperatingresultinthecomparablequarterof

thepreviousyear.Therevenuegrowthof€519,000

comparedtothepreviousyearwasmostlyreflectedin

theresult.Thiswasaccompaniedbyanimprovement

of3percentagepointsinthegrossmargin,whichrose

to30%.


TheEBITAforthequarterunderreviewincludesstart-

upcostsofaround€400,000fortheadservingand

e-commerceoutsourcingactivitieswhichbeganinthe

previousyear;inthesecondquarteroftheprevious

year,whichwasthefirsttoseesignificantcostsfor

theestablishmentandexpansionofthisbusiness,the

burdenontheoperatingresultwasaround€350,000.

Whiletheadvancepaymentsinthepreviousyearwere

largelyreportedasadministrativecosts,thestart-up

costsinthecurrent2009/2010financialyearmainly

affectthegrossprofitfollowingthelaunchortakeover

ofrevenueactivity.Theproportionofnetrevenues

accountedforbyadministrativeexpensestherefore

declinedagainto15.8%inthequarterofthereport;

inthepreviousyear,itwas20.1%.

Marketingexpensesmadeuparelativelyhigh8.6%

inthequarterunderreview.Thiscanbeattributednot

leasttotheadvertisingcostsarisingfromtheoperation

ofonlineshopsinthee-commerceoutsourcingbusi-

ness,someofwhicharetheresponsibilityofSinner-

Schrader.

Inthesecondfinancialquarter,SinnerSchraderagain

spentaround€100,000onresearchanddevelopment.

Themajorityofthiswenttothefurtherdevelopmentof

then7adservingsoftware.

Acomparisonwiththeprecedingfirstquarter,which

sawanEBITAof€596,000,revealsthattheseasonal

decreaseinnetrevenuesofaround€600,000was

partiallycompensatedforthroughtheuseoffewer

freelancers,lowerpersonnelcostsonaccountofholi-

days,andlowermarketingandadministrativecosts.

The€400,000decreaseintheresultisalsoreflected

inthegrossmargin,whichis5percentagepoints

lower.Thestart-uplossesinthenewbusinessfields

werearound€100,000higherinthesecondquarter

thaninthefirstlargelyonaccountofseasonallylower

revenuesintheadservingbusinessinJanuaryand

February.

Forthefirsthalfofthe2009/2010financialyear,the

accumulatedoperatingresultwas€802,000.The

previousyear’svalueof€398,000wasthereforemore

thandoubled,eventhoughinthehalf-yearunder

review,theexpensesof€716,000fornewbusiness

activitieswerenearlytwiceashighasinthesame

periodofthepreviousyear,whichsawstart-upcosts

of€367,000.

Thispositivedevelopmentisthankslargelytothe

welcomedevelopmentofearningsfromestablished

businessintheInteractiveMarketingsegment.The

segmentresultinthefirsthalfof2008/2009was

raisedbynearly130%inthehalf-yearunderreview

from€727,000to€1,649,000.TheriseintheEBITA

wasalmostpreciselyequivalenttotheincreasein

netrevenues.Thisreflectsaconsiderablemarginim-

provementinthebusinessofthissegment:TheEBITA

marginreached15.7%inthehalf-yearofthereport,

comparedto7.5%inthepreviousyear.

Thetwootheroperatingsegments,InteractiveMedia

andInteractiveCommerce,contributedanegative

€–149,000and€–461,000,respectively,tothe

Group’soperatingresultonaccountofthecosts

incurredforestablishingtheadservingbusinessand

launchingthee-commerceoutsourcingbusiness.In

theInteractiveMediasegment,thestart-upexpenses

fortheadservingbusinesscouldnotbefullycompen-

satedforbythemediabusinessastheywereinthe

firstsixmonthsofthepreviousyear.Increasedsales

activitiesandfallsinmargins,whichcouldnotyetbe

balancedoutbyagrowthinvolume,ledtoanotice-

ablereductioninthepositiveresultsfromthemedia

businesscomparedtotheyearbefore.

ThetotalEBITAmarginoftheSinnerSchraderGroup

improvedfrom3.8%inthefirstsixmonthsofthe

previousyearto7.1%inthehalf-yearunderreview.

Despitethestart-upeffects,thegrossmarginroseby

around3percentagepointsinthehalf-year,reaching

32.6%.Thenetrevenueproportionofthemarketing

costsrosesignificantlyto8.2%,comparedto6.4%

inthepreviousyear.Intensifiedsalesactivitiesinthe

mediabusinessandthefirstadvertisingcostsfrom

thee-commerceoutsourcingbusinessmadeasignifi-

cantcontributiontothisdevelopment.Theadministra-

tivecostsnormalisedinthehalf-yearofthereport,

makingup15.6%ofnetrevenues,afterreaching

18.1%inthepreviousyearduetopreparationsforthe

establishmentofnewbusinessfields.Theproportion

ofresearchanddevelopmentexpenseswas1.8%.

Theincreaseoverthepreviousyear’svalueof1.2%

canbeattributedsolelytothefurtherdevelopment

costsfortheadservingsoftwarewhichwereincurred

fortheentireperiod.


4.3 Consolidated Income

EBITAinthesecondquarterof2009/2010covered

thedepreciationsonintangibleassetsfromacquisi-

tions,particularlythen7software,tothetotalamount

of€161,000.Togetherwiththefinancialresultof

€29,000andafterdeductionofincometaxesinthe

amountof€41,000,theconsolidatedincomeinthe

quarterofthereportwas€31,000.Consolidated

incomeof€–367,000wasreportedinthecomparable

quarterofthepreviousyear;theriseintheoperating

resultisthereforereflectedinacomparableamountin

theconsolidatedincome.

Inthepastyear,advancepaymentsfortheset-upof

theadservingbusiness,whichbeganinthesecond

quarterof2008/2009,werestillattributedtothesell-

ersofnewtentiontechnologiesGmbHinthatquarter

andinthesubsequentthirdquarterof2008/2009.As

aresult,theconsolidatedincometobeallocatedto

theshareholdersofSinnerSchraderAGwas€71,000

inthecomparableperiodofthepreviousyearand

washigherthantheconsolidatedincome.Asthe

advancepaymentsfortheadservingbusinessareto

beassignedtoSinnerSchradersincethefulltake-over

ofnewtentiontechnologiesGmbHattheendofMay

2009,theincometobeallocatedtoSinnerSchrader

shareholdersinthequarterofthereportcorresponded

totheconsolidatedincome.

Inthefirsthalfofthefinancialyear,SinnerSchrader

achievedaconsolidatedincomeof€414,000or

€0.04persharewhichistobeallocatedentirelyto

SinnerSchradershareholders.Thecomparablevalues

fromthepreviousyearwere€48,000and€486,000

fortheconsolidatedincomeandtheproportionwhich

wasattributedtoSinnerSchradershareholders.

Forthefirsthalf-year,too,theriseintheresultcom-

paredtothepreviousyearintheoperativespherewas

feltalmostentirelyontheleveloftheconsolidated

income.Higherdepreciationsonintangibleassets

fromacquisitions(around€–50,000)andlossesin

thefinancialresultonaccountofasignificantlylower

averageinterestratecomparedtothepreviousyear

(around€–90,000)werebalancedoutbyalighter

incometaxburden(€+102,000).Thecomparatively

lowtaxrateinthehalf-yearofthereportisconnected

withthefirst-timeinclusionofnextcommerceGmbH

inthedomesticgroupofcompaniesofSinnerSchrader

AGfollowingtheentryintoforceoftheprofitandloss

transferagreementconcludedbetweenthecompanies.

4.4 Cash flows

Asinthefirstquarter,thegoodoperativeperformance

inthesecondquarterof2009/2010,considering

seasonaldevelopments,wasemphasisedbystrong

operatingcashflowstotheamountofaround€1.1

million.

Forthehalf-yearofthereport,thecashflowsfromop-

eratingactivitiesamountedtoawelcome€2.3million.

Thiswas€1.2millionmorethaninthefirsthalfofthe

previousyear,anditevensurpassesthevalueforthe

entire2008/2009financialyear.Inadditiontothecon-

solidatedincomeadjustedfornon-cashtransactions

ofatotalof€0.9million,itwasthereleaseoffundsin

theitemsarisingfromservicesrenderedtocustomers

intheamountofnearly€1.2millionwhichcontributed

abovealltothepositiveoperatingcashflows.

Theuseoffundsforinvestmentsandfinancing–

adjustedforinvestmentsrelatingtotheinvestment

oftheliquidityreserve–totallingaround€1.4million

werefinancedfromtheoperatingcashflowsinthe

half-yearunderreview.Thelargestindividualitemwas

thedividendpaymentofaround€0.9millionmade

on17December2009.Nearly€0.3millionwaspaid

asthesecondearn-outinstalmenttothesellersof

spot-mediaAG.Another€0.2millionwasusedfor

investmentsparticularlyinIThardwareandsoftware

aswellasofficeandbusinessequipment.

Theremainingportionoftheoperatingcashflows

ofagood€0.9millionincreasedtheliquidfunds

andsecurities,whichcorrespondinglyrosetonearly

€9.0millionfromthelevelon31August2009to

28February2010.


4.6 Employees

Duetowelcomebusinessgrowthandpositiveexpect-

ationsforfuturedevelopment,SinnerSchraderfurther

expandeditsemployeebaseinthesecondquarterof

2009/2010.On28February2010,theSinnerSchrader

Grouphad294employees.Thiswas15employees

morethanthereweresixmonthsbeforeon31August

2009.Thenumberofemployeesgrewby20compared

to28February2009.

Therewere244employeesintheInteractiveMarket-

ingsegment,20employeesintheInteractiveMedia

segment,and4employeesintheInteractiveCommerce

segment.26employeeswereaccountedforbythe

holdingcompany.Ofthe294employees,17werein

training,and37workedasstudentsorwereinterns.

Theaveragenumberoffull-timeemployeesinthefirst

half-yearwas263,whichcorrespondstoacapacity

increaseof31full-timeemployeescomparedtothe

sameperiodinthepreviousyear.Ofthistotalnumber

ofemployees,therewere216full-timeemployeesin

theInteractiveMarketingsegment,20intheInteractive

Mediasegment,and3intheInteractiveCommerce

segment;theremaining24full-timeemployeesworked

inthecross-segmentholdingcompany.Clusteredby

fieldsofcompetence,therewere76full-timeemployees

inconsulting,121intechnology,34increation,and

32inadministration.Comparedtothepreviousyear,

thepersonnelcapacitywasexpandedaboveallin

consultingandtechnology.

5 Risks and Opportunities

AsregardsriskmanagementatSinnerSchraderand

themajorrisksandopportunities,therehavebeenno

majorchangesinthesecondquarterof2009/2010

incomparisontothesituationinthe2008/2009Annual

Report.Noriskshavebeenidentifiedthatcould

threatentheexistenceoftheSinnerSchraderGroup

orSinnerSchraderAG.

4.5 balance Sheets

Comparedto31August2009,thebalancesheettotal

attheendofthefirsthalfofthe2009/2010financial

yearfellasaresultofthedividendpaidinDecember;

itdecreasedbyaround€0.5millionto€19.9million

asof28February2010.Ontheassetsside,the

increaseintheliquidityreserveofaround€1.0million

wascompensatedforbythe€1.1milliondecrease

inoutstandingitemsforservicesrenderedwhichwas

achieveddespitetherevenuegrowth.Inthenon-current

assets,theinvestmentswereconsiderablylowerthan

theperiodicdepreciationssothattheirbookvalueas

of28February2010wasnearly€0.4millionbelowthe

valuepostedon31August2009.

Ontheliabilitiesside,thedecreaseinthebalancesheet

totalofaround€0.5millionwasnearlyequivalentto

thedecreaseinshareholders’equity.Nearlyhalfofthe

dividendintheamountof€0.9millionfromtheprofit

ofthe2008/2009financialyearwasbalancedoutby

theconsolidatedincomeofthefirsthalfoftheyear.

Theshareholders’equitythereforereachedavalue

on28February2010thatwas€0.5millionbelowthat

of31August2009.Asregardsliabilitiesandaccrued

expenses,ashiftfromnon-currenttocurrentaccrued

expensesofaround€0.35millionarose,thoughthe

totalamountremainedconstantcomparedto31August

2009.Inthecurrentliabilities,therewasaclearshift

intheitemforadvancepaymentsreceivedwhich

emphasisestheimprovementinthepositiontowards

customers.

Onaccountofthedecreaseinshareholders’equity

duetothedividendpayment,theequityratefell

from61.6%asof31August2009to60.7%asof

28February2010.


6 Major Events after the balance Sheet Date

Afterthebalancesheetdatetherewerenomajor

eventstoreportwhichcouldbeexpectedtohavea

significanteffectontheasset,financialandincome

statusofSinnerSchrader.

7 forecast

Thepositiveimpressionofbusinessdevelopments

fromthefirstquartercontinuedinthesecondquarter

ofthe2009/2010financialyear,eventhoughthesea-

sonalfallinkeybusinessdatawouldinitiallyleadone

tosuspectotherwiseinacomparisonbetweenthe

firstandsecondquarter.

Slightdelaysintheestablishmentofthenewbusiness

fieldsofadservingande-commerceoutsourcinghave

beenbalancedoutbyhigherthanexpecteddynamism

intheInteractiveMarketingsegment.Thegrowthof

justunder16%inincomingordersasof28February

2010incomparisontothepreviousyearroseeven

furtherinMarch2010andisaround18%forthefirst

eightmonthsofthefinancialyear.

Againstthisbackground,SinnerSchraderconfirms

theobjectivesforthe2009/2010financialyearof

increasingnetrevenuebyover14%incomparisonto

thatofthepreviousyearandsignificantlyimproving

theEBITAofthepreviousyear.Achievementofthese

goalswilldependonmakingconsistentuseoftheop-

portunitiesintraditionalbusinessandnotallowingthe

delayinsettingupnewbusinessfieldsgettoobig.

12 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG

Consolidated balance Sheetsasof28February2010and31August2009

Assetsin€ 28.02.2010 31.08.2009

Currentassets:

liquidfunds 2,611,256 3,214,983

Marketablesecurities 6,360,089 4,773,391

Cashandcashequivalents 8,971,345 7,988,374

Accountsreceivable,netofallowancesfordoubtfulaccountsof

€155,924and€155,924at30.11.2009and31.08.2009,respectively 3,505,480 5,202,256

unbilledrevenues 1,429,216 888,816

Othercurrentassetsandprepaidexpenses 181,816 129,694

Totalcurrentassets 14,087,857 14,209,140

Non-currentassets:

Goodwill 3,134,986 3,134,986

Otherintangibleassets 1,494,755 1,703,583

propertyandequipment 978,126 1,028,480

Taxreceivables 164,999 162,047

Othernon-currentassetsandprepaidexpenses – 103,449

Totalnon-currentassets 5,772,866 6,132,545

total assets 19,860,723 20,341,685

Liabilities and shareholders’ equityin€

Currentliabilities:

Tradeaccountspayable 1,722,537 2,020,562

Advancepaymentsreceived 923,809 421,922

Otheraccruedexpenses 1,831,717 1,701,860

Taxliabilities 1,373,381 1,256,734

Othercurrentliabilitiesanddeferredincome 973,463 1,081,201

Totalcurrentliabilities 6,824,907 6,482,279

Non-currentliabilities:

Othernon-currentliabilities 485,766 736,745

Deferredtaxliabilities 487,140 588,598

Totalnon-currentliabilities 972,906 1,325,343

Shareholders’equity:

Commonstock,statedvalue€1,issued:11,542,764and11,542,764,

outstanding:11,272,108and11,272,108at28.02.2010and31.08.2009,respectively 11,542,764 11,542,764

Additionalpaid-incapital 3,599,444 3,599,444

Reservesforshare-basedcompensation 121,648 102,037

Treasurystock,270,656and270,656at30.11.2009and31.08.2009,respectively -418,027 -418,027

Accumulateddeficit -2,822,051 -2,334,226

Changesinshareholders’equitynotaffectingnetincome 39,132 42,071

Totalshareholders’equity 12,062,910 12,534,063

total liabilities and shareholders’ equity 19,860,723 20,341,685

TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.

13CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG

Consolidated Statements of Operationsfrom1September2009to28February2010

in€ Q22009/2010 Q22008/20091) H12009/2010 H12008/20091)

Grossrevenues 6,347,365 6,639,989 13,481,283 13,948,831

Mediacosts -1,015,466 -1,827,156 -2,214,616 -3,555,768

Totalrevenues,net 5,331,899 4,812,833 11,266,667 10,393,063

Costsofrevenues -3,731,717 3,509,349 -7,590,610 -7,322,520

gross profit 1,600,182 1,303,484 3,676,057 3,070,543

Sellingandmarketingexpenses -458,474 -388,697 -924,695 -669,568

Generalandadministrativeexpenses -842,027 -967,864 -1,754,208 -1,882,653

Researchanddevelopmentexpenses -102,225 -115,733 -206,483 -124,486

Amortisationofintangibleassetsfromfirstconsolidation -161,234 -230,917 -322,468 -270,434

Operating income 36,222 -399,727 468,203 123,402

Otherincome/expenses,net 8,454 6,254 11,663 4,328

Financialincome,net 28,789 54,874 51,545 140,447

Income before provision for income tax 73,465 -338,599 531,411 268,177

Incometax -41,467 -28,528 -117,467 -219,940

net income 31,998 -367,127 413,944 48,237

Netincomeattributabletoexternalshareholders – -437,952 – -437,952

NetincomeattributabletotheshareholdersofSinnerSchraderAG 31,998 70,825 413,944 486,189

Netincomepershare(basic) 0.00 0.04 0.04 0.04

Netincomepershare(diluted) 0.00 0.04 0.04 0.04

Weightedaveragesharesoutstanding(basic) 11,272,108 11,425,453 11,272,108 11,425,453

Weightedaveragesharesoutstanding(diluted) 11,272,108 11,425,918 11,281,227 11,425,918


Consolidated Statements of Comprehensive Incomefrom1September2009to28February2010

in€ Q22009/2010 Q22008/2009 H12009/2010 H12008/2009

Netincome 31,998 -367,127 413,944 48,237

Foreigncurrencytranslationadjustment 2 7 6 34

Changeinfairvalueofavailable-for-salefinancialinstruments -4,219 – -4,348 –

Taxesonincomerecogniseddirectlyinshareholders’equity 1,362 – 1,403 –

Changesinshareholders’equitynotaffectingnetincome -2,855 7 -2,939 34

Consolidated comprehensive income 29,143 -367,120 411,005 48,271

Netincomeattributabletoexternalshareholders – -437,952 – -437,952

NetincomeattributabletotheshareholdersofSinnerSchraderAG 29,143 70,832 411,005 486,223



Consolidated Statements of Shareholders’ Equityfrom1September2009to28February2010

in€ Numberofshares

outstanding

Common

stock

Additionalpaid-in

capital

Reservesforshare-

basedcompensation

Treasurystock Retainedearnings/

losses

Changesinshareholders’

equitynotaffectingnet

income

Totalshareholders’equity

withoutexternalinterests

ExternalInterests Totalshareholders’equity

balance at 31.08.2008 11,497,579 11,542,764 3,601,770 70,778 -72,192 -2,197,346 25,071 12,970,845 – 12,970,845

Changesinshareholders’equitynotaffectingnetincome – – – – – – 34 34 – 34

Netincomeattributabletoexternalshareholders – – – – – 486,189 – 486,189 – 486,189

NetincomeattributabletotheshareholdersofSinnerSchraderAG – – – – – – – – -437,952 -437,952

Consolidatedcomprehensiveincome – – – – – 486,189 34 486,223 -437,952 48,271

Disburseddividend – – – – – -1,367,906 – -1,367,906 – -1,367,906

Deferredcompensation – – – 16,893 – – – 16,893 – 16,893

purchaseoftreasurystock -153,383 – – – -242,931 – – -242,931 – -242,931

Changesinbasisofconsolidation – – – – – – – – 876,762 876,762

balance at 28.02.20091) 11,344,196 11,542,764 3,601,770 87,671 -315,123 -3,079,063 25,105 11,863,124 438,810 12,301,934

balance at 31.08.2009 11,272,108 11,542,764 3,599,444 102,037 -418,027 -2,334,226 42,071 12,534,063 – 12,534,063

Changesinshareholders’equitynotaffectingnetincome – – – – – – -2,939 -2,939 – -2,939

Netincome – – – – – 413,944 – 413,944 – 413,944

Consolidatedcomprehensiveincome – – – – – 413,944 -2,939 411,005 – 411,005

Disburseddividend – – – – – -901,769 – -901,769 – -901,769


purchaseoftreasurystock – – – – – – – – – –

balance at 28.02.2010 11,272,108 11,542,764 3,599,444 121,648 -418,027 -2,822,051 39,132 12,062,910 – 12,062,910



15CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG

Consolidated Statements of Shareholders’ Equityfrom1September2009to28February2010

in€ Numberofshares

outstanding

Common

stock

Additionalpaid-in

capital

Reservesforshare-

basedcompensation

Treasurystock Retainedearnings/

losses

Changesinshareholders’

equitynotaffectingnet

income

Totalshareholders’equity

withoutexternalinterests

ExternalInterests Totalshareholders’equity

balance at 31.08.2008 11,497,579 11,542,764 3,601,770 70,778 -72,192 -2,197,346 25,071 12,970,845 – 12,970,845

Changesinshareholders’equitynotaffectingnetincome – – – – – – 34 34 – 34

Netincomeattributabletoexternalshareholders – – – – – 486,189 – 486,189 – 486,189

NetincomeattributabletotheshareholdersofSinnerSchraderAG – – – – – – – – -437,952 -437,952

Consolidatedcomprehensiveincome – – – – – 486,189 34 486,223 -437,952 48,271

Disburseddividend – – – – – -1,367,906 – -1,367,906 – -1,367,906


purchaseoftreasurystock -153,383 – – – -242,931 – – -242,931 – -242,931

Changesinbasisofconsolidation – – – – – – – – 876,762 876,762

balance at 28.02.20091) 11,344,196 11,542,764 3,601,770 87,671 -315,123 -3,079,063 25,105 11,863,124 438,810 12,301,934

balance at 31.08.2009 11,272,108 11,542,764 3,599,444 102,037 -418,027 -2,334,226 42,071 12,534,063 – 12,534,063

Changesinshareholders’equitynotaffectingnetincome – – – – – – -2,939 -2,939 – -2,939

Netincome – – – – – 413,944 – 413,944 – 413,944

Consolidatedcomprehensiveincome – – – – – 413,944 -2,939 411,005 – 411,005

Disburseddividend – – – – – -901,769 – -901,769 – -901,769


purchaseoftreasurystock – – – – – – – – – –

balance at 28.02.2010 11,272,108 11,542,764 3,599,444 121,648 -418,027 -2,822,051 39,132 12,062,910 – 12,062,910




Consolidated Statements of Cash flowsfrom1September2009to28February2010

in€ H12009/2010 H12008/20091)

Cashflowsfromoperatingactivities:

Netincome 413,944 48,237

Adjustmentstoreconcilenetincometonetcashusedinoperatingactivities:

Amortisationofintangibleassetsfromfirstconsolidation 322,468 270,434

Depreciationofpropertyandequipment 259,746 273,988

Share-basedcompensation 19,611 16,893

Baddebtexpenses – -2,000

Gains/lossesonthedisposaloffixedassets 1,053 702

Deferredtaxprovision -100,055 -79,048

Changesinassetsandliabilities:

Accountsreceivable 1,696,775 664,268

unbilledrevenues -540,400 -227,088

Taxreceivables -2,952 -1,545

Othercurrentassetsandprepaidexpenses -64,319 796,899

Accountspayable,deferredrevenues,andotherliabilities 26,804 -1,113,866

Taxliabilities 116,648 114,601

Otheraccruedexpenses 129,857 272,911

net cash provided by (used in) operating activities 2,279,180 1,035,386

Cashflowsfrominvestingactivities:

Acquisitionofsubsidiarycompaniesandbusinessunitslessacquiredliquidfunds – -660,000

purchasepricepaymentsforacquisitionofsubsidiarycompaniesinpreviousyears -284,400 -270,280

purchaseofpropertyandequipment -199,140 -168,059

proceedsofsaleofequipment 2,396 –

Additionsofmarketablesecurities -1,500,000 –

net cash provided by (used in) investing activities -1,981,144 -1,098,339

Cashflowsfromfinancingactivities:

paymenttoshareholders -901,769 -1,367,906

paymentfortreasurystock – -242,931

net cash provided by (used in) financing activities -901,769 -1,610,837

Neteffectofratechangesoncashandcashequivalents 6 34

net increase/decrease in cash and cash equivalents -603,727 -1,673,756

Cashandcashequivalentsatbeginningofperiod 3,214,983 9,075,148

Cashandcashequivalentsatendofperiod 2,611,256 7,401,392

thereofback-upofbankguarantees 662,880 867,855

Forinformationonly,containedincashflowsfromoperatingactivities:

Interestpaymentsreceived 85,079 80,352

paidinterest -16,446 -1,880



17CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES

notes

1 general foundations

TheConsolidatedFinancialStatementsasof28February2010ofSinnerSchraderAktiengesellschaft(“Sinner-

SchraderAG”or“AG”)anditssubsidiaries(“SinnerSchraderGroup”,“SinnerSchrader”,or“Group”)forthefirst

halfandthesecondquarterofthe2009/2010financialyearfrom1September2009and1December2009,

respectively,to28February2010weredrawnupaccordingtotheInternationalFinancialReportingStandards

(“IFRS”)oftheInternationalAccountingStandardsBoard(“IASB”)inforceonthereportdate,takingaccountof

theinterpretationsoftheInternationalFinancialReportingInterpretationsCommittee(“IFRIC”)andincompliance

withthestandardforinterimfinancialreportsspecifiedbyDRS16oftheGermanAccountingStandards.Itwas

notsubjecttoauditingshouldbereadinconjunctionwiththeConsolidatedFinancialStatementsofSinner-

SchraderAktiengesellschaftasof31August2009.

Theaccounting,valuation,andconsolidationprinciplesoftheQuarterlyReportathandareunchangedfrom

theGroup’sConsolidatedFinancialStatementsasof31August2009.Theyaredisclosedandexplainedinthe

Group’sConsolidatedFinancialStatementsasof31August2009,whicharepublishedinthe2008/2009Annual

Report.

2 Consolidation group

Theconsolidationgroupasof28February2010hadnotchangedincomparisonto31August2009andconsisted

ofSinnerSchraderAGaswellasthefollowingdirectandindirectsubsidiariesoftheAG,eachofwhichisfully

consolidated:

1.SinnerSchraderDeutschlandGmbH,Hamburg,Germany

2.spot-mediaAG,Hamburg,Germany

3.spot-mediaconsultingGmbH,Hamburg,Germany

4.newtentiontechnologiesGmbH,Hamburg,Germany

5.newtentionservicesGmbH,Hamburg,Germany

6.nextcommerceGmbH,Hamburg,Germany

7.SinnerSchraderuKltd.,london,GreatBritain

8.SinnerSchraderBeneluxBv,Rotterdam,theNetherlands

spot-media group

Thespot-mediaGroupwasacquiredinthe2007/2008financialyearandincorporatedintheConsolidatedFinancial

Statementsforthefirsttimeon1February2008.Thepurchasepriceforthetake-overofspot-mediaAG

containsanearn-outcomponentthatistobepaidoutintheyears2009to2012onthebasisoftheoperating

performanceofspot-mediaAGin2008to2011.Thesecondearn-outpaymentintheamountof€284,000was

paidinFebruary2010.Theearn-outliabilityasof28February2010wasestimatedatadiscountedvalueof

€663,000andpostedunderotherliabilities,€332,000ofwhichasnon-currentand€331,00ascurrentliabilities.

18 CONSOlIDATEDQuARTERlyREpORT22009/2010OFSINNERSCHRADERAG NOTES

Withinthecontextoftheinitialconsolidation,asegmentofthepurchasepriceintheamountof€382,000

hadtobeallocatedtoexistingcustomers.Theusageperiodofthisintangibleassetwasdeterminedtobe29

months.Duetothelineardepreciationoverthisusageperiod,therewasachargeof€79,000inthefirsthalfof

2009/2010.

Witheffecton1January2009,spot-mediaAGhadonecustomerrelationshipandhadtakenonthestaffdeployed

exclusivelyforthiscustomerrelationshipfromanotheragency.Thistakeoverwasqualifiedasthetakeoverofan

intangibleassetaccordingtotheIFRSrulesandwasthuspostedonthebalancesheetaccordingtoIAS38.The

purchaseprice,whichisdueinthreeannualinstalmentsstartingfromMarch2009andtheamountofwhichis

largelybasedonthebusinesstransactedwiththisclient,wasestimatedtobeatotalof€394,000atthetimeof

thepurchase.Duetotheactualcourseofbusinessinthe2008/2009financialyear,theestimatewasraisedby

€127,000asof1September2009.Thevalueofthecorrespondingassetsandthepurchasepriceliability

rosebythisamount.Thelineardepreciationoverfouryearsresultedinchargesof€68,000inthefirsthalfof

2009/2010.

newtention group

Inthe2008/2009financialyear,SinnerSchraderAGtookoverthenewtentionGroupintwostages.Initialcon-

solidationwiththetransferofcontrolaccordingtoIFRStookeffecton1December2008.Thismeansthatthe

newtentionGroupwaspartoftheconsolidationgroupforonlythreemonthsinthecomparableperiodofthe

2008/2009financialyear.AssumingthatthenewtentioncompanieshadalsobeenpartoftheGroupinthefirst

quarterof2008/2009,thecomparisoninTable1showsthekeyfiguresofthereportingperiodvis-à-visthe

previousyear:

table 1 | Previous year comparative figures pro formain€

H12009/2010 H12008/2009

proforma

Revenues,gross 13,481,283 14,197,553

Totalrevenues,net 11,266,667 10,641,785

EBITA 802,334 114,866

Withinthecontextoftheinitialconsolidation,softwaredevelopedbynewtentiontechnologiesGmbHwas

identifiedasanintangibleassetandvaluedat€1.4million.Theprobableusageperiodofthisintangibleasset

wasdeterminedtobefouryears.Forthefirsthalfof2009/2010thisresultedinachargeof€175,000fromthe

depreciationstointangibleassetsfrominitialconsolidation.Thequarterlyreportingforthe2008/2009financial

yearinassociationwiththetake-overofthenewtentionGroupwasbasedontheprovisionalconsolidationof

newtentionasof31May2009.Whilecompilingandauditingthe2008/2009financialstatements,itwasnotedthat

controlofthenewtentionGrouppassedtoSinnerSchraderwhenitreceivedthepurchaseoptionon1December

2008duetopotentialvotingrights,meaningthatthenewtentionGroupwastobeconsolidatedintheSinner-

SchraderGroupforthefirsttimeatthispoint.Thevaluesdeterminedforthesecondquarterandthefirsthalfof

2008/2009whilecompilingthefinancialstatementshavethusbeenadjustedaccordingly.

next commerce gmbH

On20May2009,SinnerSchraderfoundedthesubsidiarynextcommerceGmbH,withafinancialyearof1Mayof

oneyearto30Aprilofthefollowingyear,deviatingfromthecalendaryear.On3November2009SinnerSchrader

AGandnextcommerceGmbHconcludedaprofit-and-loss-transferandcontrolagreement.TheAnnualGeneral

MeetingofSinnerSchraderAGapprovedthisagreementon16December2009.Theagreementshalltakeeffect

whenitisenteredinthecommercialregisterandwillprobablytakeeffectfortheentireshortfinancialyearof

nextcommerceGmbHfrom20May2009to30April2010.


3 Segment Reporting

Followingtheexpansionofthebusinessportfoliocompletedinthe2008/2009financialyear,SinnerSchrader

dividesitsbusinessintothreebusinesssegments:InteractiveMarketing,InteractiveMedia,andInteractive

Commerce.TheInteractiveMarketingsegmentisformedbySinnerSchraderDeutschlandGmbH,withoutthe

Mediadivision,aswellasthespot-mediaGroup.TheMediadivisionofSinnerSchraderDeutschlandGmbHand

thenewtentionGrouparebroughttogetherintheInteractiveMediasegment.nextcommerceGmbHformsthe

InteractiveCommercesegment.

AccountingfortheindividualsegmentsfollowstheaccountingprinciplesthatarealsousedintheGroup.Adminis-

trativecostsincurredinSinnerSchraderAGarechargedtotheoperativesegments,wheretheycanbeassigned.

Coststhatcannotbeassignedarenotdistributedtothesegments–thesearelargelycostsfororiginalholding

tasks,suchasinvestorrelationswork.

Table2ashowsthesegmentinformationforthefirsthalfofthe2009/2010financialyear,whereasthecomparative

dataofthepreviousyearcanbeseeninTable2b:

table 2a | Segment information for the first half of 2009/2010in€andnumber

01.09.2009–28.02.2010 Interactive

Marketing

Interactive

Media

Interactive

Commerce

Sum

segments

Holding/

consolidation

Group

Externalrevenues 10,354,398 2,898,163 228,722 13,481,283 – 13,481,283

Internalrevenues 176,162 113,263 – 289,425 -289,425 –

Grossrevenues 10,530,560 3,011,426 228,722 13,770,708 -289,425 13,481,283

Mediacosts – -2,214,616 – -2,214,616 – -2,214,616

Totalrevenues,net 10,530,560 796,810 228,722 11,556,092 -289,425 11,266,667

Segment income (EbItA) 1,648,932 -149,227 -461,187 1,038,518 -236,184 802,334

Employees,endofperiod 244 20 4 268 26 294

table 2b | Segment information for the first half of 2008/2009in€andnumber

01.09.2008–28.02.2009 Interactive

Marketing

Interactive

Media

Interactive

Commerce

Sum

segments

Holding/

consolidation

Group

Externalrevenues 9,635,771 4,313,060 – 13,948,831 – 13,948,831

Internalrevenues – – – – – –

Grossrevenues 9,635,771 4,313,060 – 13,948,831 – 13,948,831

Mediacosts – -3,555,768 – -3,555,768 – -3,555,768

Totalrevenues,net 9,635,771 757,292 – 10,393,063 – 10,393,063

Segment income (EbItA) 727,150 140,547 -100,796 766,901 -368,737 398,164

Employees,endofperiod 221 23 3 247 28 275


Table2cexplainsthetransferofthetotalofthesegmentearningstothepre-taxearningsintheGroupforthe

periodfrom1September2009to28February2010andforthecomparativeperiodofthepreviousyear:

table 2c | Reconciliation of segment income to income before taxes of the groupin€

H12009/2010 H12008/2009

Segmentincome(EBITA)allreportingsegments 1,038,518 766,901

Centralcostsnotpassedontosegments -236,184 -368,737

EBITAoftheGroup 802,334 398,164

Amortisationofintangibleassetsfromfirstconsolidation -322,468 -270,434

FinancialincomeoftheGroup 51,545 140,447

IncomebeforetaxesoftheGroup 531,411 268,177

AllSinnerSchraderrevenueswereearnedbyGroupcompaniesbasedinGermany.

4 taxes from Income and from Earnings

ThetaxesreportedintheStatementsofOperationsfromincomeandfromearningsaremadeupofcurrentand

deferredcomponents,asshowninTable3:

table 3 | Current and deferred taxes for the periodin€

H12009/2010 H12008/20091)

Current 217,522 242,508

Deferred -100,055 -22,568

total 117,467 219,940

1) AdjustedduetotheconclusionofthefirstconsolidationofthenewtentionGroupinthecontextofdrawinguptheConsolidatedFinancialStatementsforthe

2008/2009financialyear

Inthefirsthalfof2009/2010,currenttaxliabilitiesintheamountofaround€217,000wereincurred(previous

year:€242,000).DeferredtaxeswereformedinaccordancewithIAS12ontemporarydifferencesbetweenthe

bookvaluesintheConsolidatedBalanceSheetandthetaxassumptions.

5 financial Obligations and Contingent Liabilities

Thecontingenciesandotherfinancialobligationsasof28February2010werelargelyunchangedcomparedto

theConsolidatedFinancialStatementsasof31August2009.


6 Securities

Asof28February2010,thetotalofsecuritieshadrisenby€1,587,000incomparisonto31August2009.It

wasstillmadeupofcorporateloansandbearerbondsofsolventcompaniesandbankswithgoodcreditratings

(investmentgrade)withremainingtermstothebalancesheetdateof1to17months.

Thesecuritiescanbesoldatanytimeandareusedtocovertheshort-termfinanceneeds.Inagreementwith

IAS39,SinnerSchraderhasqualifiedthesesecuritiesas“availableforsale”andthusevaluatedthemattheir

marketvalue.providedthattheyarenottobequalifiedaspermanent,theunrealisedprofitsorlossesaccounted

forbythesesecuritiesasofthebalancesheetdatearedirectlyrecordedintheshareholders’equityintheitem

“Changesinshareholders’equitynotaffectingnetincome”,takingaccountofthetaxesdueonthem.

Table4showsthetotalofsecuritiesandtheunrealisedprofitsandlossesaccountedforbythemduetothe

marketvaluationasof28February2010andthedistributionofthetimetomaturity:

table 4 | Marketable securitiesin€

Term Acquisition

costs

Amortisation

ofacquisition

costs

unrealised

gains

unrealised

losses

Bookvalueas

of28.02.2010

Bookvalueas

of31.08.2009

Marketable

securities lessthan1year 3,000,000 18,685 14,340 -194 3,032,831 2,544,510

Marketable

securities 1to5years 3,200,000 120,676 7,858 -1,276 3,327,258 2,228,881

Marketable

securities, total 6,200,000 139,361 22,198 -1,470 6,360,089 4,773,391

7 treasury Stock

Asof28February2010,thetreasurystockofSinnerSchraderAGamountedto270,656shareswithacalculated

facevalueof€270,656,representing2.34%ofthesharecapital.Incomparisonto31August2009,thetreasury

stockhadnotchanged.

The270,656sharesoftreasurystockheldbySinnerSchraderasof28February2010hadapurchasepriceof

€418,027,oranaverageof€1.54pershare.

8 Stock Option Plans

WithresolutionsoftheAnnualGeneralMeetingsofOctober1999,December2000,andJanuary2007,Sinner-

SchraderAGcreatedtheSinnerSchraderStockOptionplan1999,theSinnerSchraderStockOptionplan2000,

andtheSinnerSchraderStockOptionplan2007,alongwiththenecessaryconditionalcapitalof€375,000

(StockOptionplans1999and2000)and€600,000(StockOptionplan2007).Detailedinformationonthese

stockoptionplanscanbefoundintheNotestotheConsolidatedFinancialStatementsasof31August2009.


Inthepreviousfinancialyears,250,000optionsfromtheStockOptionplan2007hadbeenassignedatanaver-

ageexercisepriceof€1.62tomembersoftheManagementBoardoftheparentcompanyandtomembersof

themanagementofsubsidiaries.Inthefirstquarterof2009/2010,another25,000optionswereassigned.

Table5summarisesthechangesinthenumberofoptionsoutstandingfromthe2000planandthe2007plan:

table 5 | Outstanding stock optionsinnumberand€

Numberofoptions Weightedaverage

exerciseprice

Outstanding at 31 August 2009 288,367 1.69

Granted 25,000 1.69

Exercised – –

Cancelled – –

Expired – –

Outstanding at 28 february 2010 313,367 1.69

IFRS2prescribesincome-affectingentryinthebalancesheetofcostsresultingfromtheissueofemployee

optionsonthebasisofthecurrentvalue.Themarketvalueoftheoptionontheissuedateshouldbedistributed

overthewaitingperiodforexercisingtheoptionandthenproportionatelyenteredintheStatementsofOper-

ationsaspersonnelcostsfortherelevantperiod.Thecostsarerecordedagainsttheshareholders’equityinthe

reserveforshare-basedcompensation.Inthefirsthalfof2009/2010,thecoststotakeintoaccountamounted

to€19,611,comparedto€16,893inthecomparableperiodof2008/2009.

9 Dividend

TheAnnualGeneralMeetingofSinnerSchraderAGon16December2009decidedtopayadividendof€0.08

persharefromthebalancesheetprofitasof31August2009atthesuggestionoftheManagementBoardand

SupervisoryBoard.Anamountof€901,769wasthuspaidtotheshareholderson17December2009;theliquid

fundsandtheshareholders’equityfellbythisamount.

10 Related Party transactions

Inthefirsthalfofthe2009/2010and2008/2009financialyears,SinnerSchradergeneratedrevenuesof€4,103,777

and€5,795,225,respectively,withcompanieswhosesupervisoryboardsincludedmembersoftheSupervisory

BoardofSinnerSchraderAGwhoheldsupervisoryboardpositionsatSinnerSchraderuntilthedateoftheAnnual

GeneralMeetingon16December2009.


11 Major Events after the balance Sheet Date

On3November2009,SinnerSchraderAGandnextcommerceGmbHconcludedaprofit-and-loss-transferand

controlagreement.TheAnnualGeneralMeetingofSinnerSchraderAGagreedtothisagreementon16Decem-

ber2009.Theagreementtookeffectwhenitwasenteredinthecommercialregisteron16March2010andwill

applytotheentireshortnextcommerceGmbHfinancialyearfrom20May2009to30April2010.

12 Directors’ Holdings of Shares and Subscription Rights to Shares (“Directors’ Dealings”)

ThefollowingTable6showsthenumberofsharesinSinnerSchraderAGandthenumberofsubscriptionrights

tothesesharesheldbydirectorsofSinnerSchraderAGasof31August2009andtheirchangesinthefirsthalf

of2009/2010:

table 6 | Shares and options of the board membersinnumber

Shares 31.08.2009 Additions Disposals 28.02.2010

ManagementBoardmember:

MatthiasSchrader 2,455,175 – – 2,455,175

ThomasDyckhoff 74,950 – – 74,950

TotalsharesoftheManagementBoard 2,530,125 – – 2,530,125

SupervisoryBoardmember:

prof.DrReinhardpöllath1) – – – –

DieterHeyde – – – –

prof.CyrusD.Khazaeli – – – –

philipW.Seitz – – – –

TotalsharesoftheSupervisoryBoard – – – –

total shares of the board members 2,530,125 – – 2,530,125

Options 31.08.2009 Additions Disposals 28.02.2010

ManagementBoardmember:

MatthiasSchrader – – – –

ThomasDyckhoff 75,000 – – 75,000

TotaloptionsoftheManagementBoard 75,000 – – 75,000

SupervisoryBoardmember:

prof.DrReinhardpöllath1) – – – –

DieterHeyde – – – –

prof.CyrusD.Khazaeli – – – –

philipW.Seitz – – – –

TotaloptionsoftheSupervisoryBoard – – – –

total options of the board members 75,000 – – 75,000

1) SupervisoryBoardmemberprof.DrReinhardpöllathlefttheSupervisoryBoardofSinnerSchraderAGwitheffectfromtheendoftheAnnualGeneralMeeting

on16December2009.philipW.SeitzwaselectedasanewSupervisoryBoardmember.


13 Responsibility Statement

Tothebestofourknowledge,andinaccordancewiththeapplicablereportingprinciples,thequarterlyfinancial

reportoftheSinnerSchraderGroupgivesatrueandfairviewoftheasset,financial,andincomesituationofthe

Group,andtheInterimStatusReportincludesafairreviewofthedevelopmentandperformanceofthebusiness

andthepositionoftheGroup,togetherwithadescriptionoftheprincipleopportunitiesandrisksassociated

withtheexpecteddevelopmentoftheGroup.

Hamburg,15April2010

TheManagementBoard

MatthiasSchrader ThomasDyckhoff

events & contact information

Financialcalendar2009/2010

3rdQuarterlyReport2009/2010(March2010–May2010) 15July2010

AnnualReport2009/2010 November2010

Ourpreviousreportsareavailableonlineandfordownloadinthe“Investors”sectionofthe

www.sinnerschrader.dewebsite.

Conferencecalendar2009/2010

next10conference 11–12May2010

Formoreinformationpleasevisitourconferencewebsitewww.next10.de.

ContactInformation

SinnerSchraderAG,InvestorRelations

völckersstraße38,22765Hamburg,Germany

T.+49.40.398855-0,F.+49.40.398855-55

www.sinnerschrader.de,[email protected]

EditorialInformation

publishedbySinnerSchraderAktiengesellschaft,Hamburg,Germany

Conceptanddesignheureka!–profitablecommunication,Essen,Germany

Dateofpublication:15April2010

SinnerSchrader Aktiengesellschaft

Völckersstraße 3822765 HamburgGermany

www.sinnerschrader.de

quarterly financial report 2009 | 2010 · ebita € 000s 206 -163 +227% 802 398 +101% ... this...

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