ALSO-Actebis: Business development in 2011 steady – integration finalized – “MORE” shows initial signs of success

IT market

The European national debt crisis had negative repercussions on the economy and, by extension, on the IT sector in 2011. The corporate business market tailed off noticeably during the second half of the year. Although private consumer business for tablet computers and smartphones rose sharply, this was at the expense of desktops and notebooks. Overall for 2011, both unit sales and industry sales were below those in 2010 (IDC). Against this backdrop, ALSO-Actebis achieved net sales of EUR 6.2 billion in 2011.

Business remains stable during merger year

The financial statements for the previous year show only the former Actebis Group and are therefore not comparable with financial 2011. An additional earnings statement has therefore been drawn up (ALSO and Actebis added together; ALSO excluding January) to facilitate comparison.

Adjusted for non-recurring factors resulting from integration and purchase price allocation (EUR 6.5 million), EBITDA for financial 2011 stood at EUR 97.9 million (comparable figure for 2010 EUR 99.7 million). Adjusted for non-recurring factors resulting from integration and purchase price allocation (EUR 14.2 million), Group net profit totalled EUR 40.9 million (comparable figure for 2010 EUR 46.8 million). The Group reported a net profit of EUR 26.7 million. In 2010, the reported Group net profit (only Actebis) stood at EUR 22.2 million.

At 31 December 2011, total assets amounted to EUR 1,262.4 million, with an equity ratio of 27.9% (total assets at time of purchase EUR 1,364.6 million, equity ratio 23.9%).

Segment-based reporting for 2010 related exclusively to the Actebis Group companies. The figures for that year are therefore not comparable with those for 2011. Comparable financial statements have not been drawn up. In the Central European market segment (Germany, Switzerland, France, Netherlands and Austria), ALSO-Actebis generated sales of EUR 4,732 million and achieved EBITDA of EUR 74.0 million. In the Northern/Eastern European market segment (Denmark, Finland, Norway, Sweden, Estonia, Latvia and Lithuania), ALSO-Actebis reported sales of EUR 1,613 million with EBITDA of EUR 17.1 million. Reductions in both sales and margins in Norway and Finland resulted in not being achieved targets in this segment.

Initial measures in the “MORE” program1 were effectively implemented. The Group’s operative business was successfully secured (Maintain). All measures designed to achieve the projected synergies were implemented at Group level as well as in Norway and Germany (Optimize). Apart from this, the Group strengthened its position in a major growth market, cloud computing, by expanding its product portfolio and embarking on strategic cooperation with reputable vendors like IBM and Microsoft. ALSO Actebis Germany is expected to distribute Apple products as from second quarter 2012. In Switzerland, the Group acquired two big logistic fulfilment contracts, which further increased the proportion of high-margin service business in its operations (Reinvent). With the founding of

ALSO Actebis MPS GmbH (Manage Print Services) and the acquisition of shares in Berlin-based Druckerfachmann AG, the Group is clearly pushing ahead with its expansion of value-added services for the retail trade (Enhance).

The national companies in Norway were unified with effect from 1 June 2011 and migrated to the Actebis SAP IT system. The German companies were amalgamated with effect from 1 October 2011 and likewise base operations on the Actebis SAP IT system. Central functions such as finance, controlling and accounting as well as IT, organization and procurement were integrated. This meant that the negative effects of a weakening market were partially offset by improvements in the result arising from synergies.

In view of these positive developments, the Board of Directors will propose a disbursement of CHF 8,961 million (CHF 0.70 per registered share) out of the reserve from contribution in kind to the General Meeting on 8 March 2012. This means that ALSO-Actebis is continuing its traditional pay out policy.

Outlook for 2012: higher Group net profit

The national debt crisis will continue to have negative repercussions on the European economy in 2012, and will represent a major challenge for the IT industry. We can expect companies to reduce their IT budgets and private households to step up their attempts to save money. The main priority for ALSO-Actebis in 2012 is to increase its profitability. As a result of the rapid completion of the integration process, the Group now has a firm footing. Despite lower net sales for 2012 and excluding unforeseen circumstances, we therefore expect a higher Group net profit than in 2011.

For the medium term, the Group is targeting EBITDA of EUR 120-130 million, which should translate into a Group net profit of EUR 50-55 million.

MORE stands for:

• Maintain: Secure existing business
• Optimize: Achieve operative excellence and the realization of synergies
• Reinvent: Increase profitability by expanding product portfolio, customer segments and services
• Enhance: Aim for acquisitions in regions and/or special suppliers.

Direct link to the Annual Report 2011: Download PDF here