2011 Half-year Results DOCDATA N.V.: Growth Continues

By Docdata N.v., PRNE
Wednesday, July 20, 2011

WAALWIJK, The Netherlands, July 21, 2011 -


 

  • Strong Growth of Revenue and Profit in the First Half-year
    2011 of e-commerce Service Company
      
  • Few deliveries by IAI industrial systems in the first
    half-year
    2011, in line with previous
    expectations

DOCDATA N.V. is well on course for 2011 and 2012. Both revenue
and results show a strong development, predominantly by the
e-commerce service company. Despite the fact that few deliveries
have been realised by IAI industrial systems in the first half-year
2011, the underlying trend is good and we expect to realise the
results in 2012 and further.

The e-commerce service company Docdata realised a substantial
growth in revenue and the number of processed transactions in the
first half of 2011. This is mainly due to the success of our
clients in the Netherlands and Germany.

The permanent staff of the Group has further increased in the
first half of 2011 from 813 employees (759 FTE) at the
beginning of the year to 1,047 employees (1,011 FTE) at the end of
the first half-year 2011.

Michiel Alting von Geusau, CEO of DOCDATA N.V.: “After the
extreme hectic year 2010 and the changes we have made in the
management structures, we see the positive effects in 2011. By far
most clients are very satisfied with the quality of our services
and our organisation is able to achieve the current growth within
the agreed service levels. The focus for the remainder of the year
is on further increasing the efficiency and bringing in new
customers and new orders.”

Results and Financial position half-year 2011
(unaudited
)

                                          Half-year ended at
    (in millions, except percentage
    figures and per share data)
                                           30 June 2011  30 June 2010
                                             EUR       %     EUR     %

    Revenue
    E-commerce service company Docdata      53.6    90.9    35.7  77.6
    Technology company IAI industrial
    systems                                  5.4     9.1    10.3  22.4
    Total                                   59.0   100.0    46.0 100.0

    Gross profit
    E-commerce service company Docdata      12.6    23.5     8.6  24.0
    Technology company IAI industrial
    systems                                  1.5    28.3     4.1  40.0
    Total                                   14.1    24.0    12.7  27.6

    Operating profit (EBIT)
    E-commerce service company Docdata       3.0     5.7     0.4   1.0
    Technology company IAI industrial
    systems                                  0.5     9.3     2.8  27.2
    Total                                    3.5     6.0     3.2   6.9

    EBITA                                    4.1     7.0     3.6   7.7
    EBITDA                                   5.8     9.8     4.6  10.1
    Profit for the half-year                 2.5     4.2     2.6   5.6

    Basic earnings per share                0.38            0.38
    Diluted earnings per share              0.36            0.37

    Balance sheet total                     50.2            50.2
    Equity                                  29.2            26.6
    Solvency ratio (Equity / Balance
    sheet total)                           58.2%           53.0%

E-commerce service company Docdata again realised a
strong increase in the number of unique transactions; in the first
half-year 2011 16.5 million unique transactions were processed
compared to 12.7 million in the first half-year 2010 (increase:
30%). The combined revenue of the e-commerce services grew
autonomous with almost € 15.5 million (+59%); in addition, revenue
increased further with € 5.2 million resulting from the activities
of the former Dohmen Solutions Group, acquired on 16 April 2010,
which contributed only 2.5 months to revenue in the first half-year
2010. The total revenue of the e-commerce service company Docdata
increased with € 17.9 million (+50%) to € 53.6 million.

For 2011 the focus is on continued growth of our e-fulfilment
service in existing markets, mainly through the growth of existing
clients. In October 2011 we expect to bring the new logistic centre
in Waalwijk partly into operation, which is necessary to
accommodate the growth of our clients in the high season. At the
end of the first half-year 2012 we expect to have the logistic
centre fully operational with a floor area of approximately 30,000
square meters. In October 2011 we will also bring a new warehouse
of 10,000 square meters in Grobeeren (near Berlin) into operation.
With this, the new buildings in Grobeeren are complete and we will
use a total floor space of approximately 50,000 square meters for
our clients.

The most important trend currently relevant for Docdata, is that
of the cross border activities in Europe of both consumers and
merchants. For this we have developed concepts that enable us to
efficiently process both the outgoing order flow and the return
shipments. Consumers can thus receive their orders with a high
delivery performance and returns can be quickly handled. For our
clients we check the return shipments and refurbish these for sale.
In the second half of 2011 we will also explore other (large)
geographical markets in Europe whether we need to have our own
facilities to fulfil these services locally or to set this up
through strategic partnerships.

The current risks for the e-commerce service company are mainly
in terms of the strategic choice of clients to purchase certain
services from external suppliers or not. In the event that a client
is acquired, there is almost always a reconsideration of this
position with the possibility of losing clients. Because of the
rapid developments in the e-commerce market, our clients are in
principle not willing to enter into long term contracts. Providing
a very high quality service offers the best protection against this
risk.

Technology company IAI industrial systems realised a
revenue of € 5.4 million in the first half-year 2011, which is
significantly behind the revenue of the comparable period in the
peak year 2010 (first half-year 2010: € 10.3 million). The main
cause was the lower level of orders, which was in line with
previously announced expectations. As a result, the operating
profit of IAI for the first half-year 2011 decreased to € 0.5
million, noting that the operating profit of € 2.8 million in the
first half-year 2010 was exceptionally high due to one specific
order. The order book of IAI at the end of June 2011 consists of
orders with a revenue value of € 9.1 million, which for the major
part will be delivered before the end of 2011 (order book per 31
December 2010
: € 8.4 million). In addition, we also expect
revenue from service, royalties and smaller systems.

Worldwide IAI industrial systems how has a good reputation in
the market for the security personalisation of security documents,
particularly for passports, ID cards, banknotes and other
documents. Not only for end users of these products (the
governments) but also for the integrators in this market, IAI aims
at being a reliable partner. Integrators are parties that acquire
large governmental assignments for which they need the equipment of
IAI besides their own contribution.

IAI gives attention to continuous improvement and expansion of
the product portfolio. One of the new system developments in the
past year was the BMDesk, a small system that can personalise a
passport manually. Recently, we realised a first order of more than
10 systems. This shows that our changed strategy, the proactive
development of systems for the needs of the market, is beginning to
bear fruit. In the first half-year 2011 IAI invested in research
for various applications and in the automation for managing product
data for a more efficient production.

In the Solar market IAI offers production systems for solar
cells or solar panels. In the first half-year 2011 a production
system was delivered to Solland Solar. This unique system was
developed in close cooperation with the client who needed a new
production tool: a system that solders contacts at the back of
solar cells with laser energy.

This new type of solar cell, called the “back-contact cell”, is
used by Solland Solar in their Sunweb panels. In the Solar market
it is expected that the back-contact type will gain market share,
hence IAI will offer the developed system to other parties as well.
IAI conducts various researches with the aim to provide new system
developments and system deliveries for the Solar market. With this
IAI preferably focuses on projects with an actual demand in the
market and which can be realised in close cooperation with a
client.

Major features of the first half-year
2011

Rrevenue of DOCDATA N.V. increased with € 13.0 million to € 59.0
million (+28%) in the first half-year 2011. In line with previously
announced expectations, revenue of IAI industrial systems decreased
with € 4.9 million (-/- 48%) predominantly due to less system
deliveries. Docdata has realised with the commerce, payments and
fulfilment services a revenue increase of € 20.7 million (+69%), of
which € 15.5 million as autonomous revenue increase predominantly
due to the increase in the number of transactions with more than
30% compared to last year. The activities of the former Dohmen
Solutions Group contributed € 5.2 million more to revenue in the
first half-year 2011 (+40%) than in the first half-year 2010,
mainly due to the fact that these activities contributed only 2.5
months to revenue after the acquisition per 16 April 2010. Docdata
media incurred a revenue decrease of € 2.7 million (-/- 48%) due to
sale of all shares in docdata media GmbH per 21 July 2010, in
combination with a further decline of the replication activities at
the only remaining replication company of Docdata in Tilburg.

In the first half-year 2011 a higher gross profit of € 14.1
million has been realised compared to the € 12.7 million in the
first half-year 2010 (+11%). The gross profit margin for the first
half-year 2011 is 24.0% compared to 27.6% for the first half-year
2010, with a decrease of the gross profit margin for both lines of
business. For Docdata this limited lower gross profit margin is
mainly due to a larger share of recharged transport costs and
higher costs for the procurement of corporate clothing for a
client. For IAI industrial systems, the decrease of the gross
profit margin is a direct consequence of the different size and
composition of deliveries in both comparable periods, taking into
account the delivery of the second part of the large order for
decentralised personalisation systems for Bulgaria in the first
half-year 2010.

In the first half-year 2011 an operating result before financing
result (EBIT) of € 3.5 million has been realised compared to € 3.2
million in the first half-year 2010. The operating result of the
technology company IAI industrial systems decreased with € 2.3
million mainly as a result of the delivery of less systems in the
first half-year 2011. However, the operating result of the
e-commerce service company Docdata increased significantly with €
2.7 million considering that the EBIT for the first half-year 2010
contained non-recurring costs of € 1.3 million under selling and
administrative expenses for acquisition- and consultancy costs,
start-up losses and restructuring costs after acquiring the
business activities of the former Dohmen Solutions Group. In the
first half-year 2011 an amount of € 0.2 million has been
recognised for these type of costs. Without these non-recurring
costs in both comparable periods, the (adjusted) EBIT has almost
doubled from € 1.7 million in the first half-year 2010 to € 3.3
million in the first half-year 2011. For the second half-year 2011
we expect another € 0.2 as restructuring costs for these business
activities.

The profit for the first half-year 2011 remained almost stable
with € 2.5 million compared to the first half of 2010, as a
combination of an improved EBIT with a net financing result that
deteriorated with € 0.3 million (predominantly caused by a foreign
currency exchange loss related to the British pound in the first
half-year 2011 compared to a foreign currency exchange profit in
the first half-year 2010) and an increased income tax expense of €
0.2 million.

DOCDATA N.V. has strengthened its strong financial position
during the first half-year 2011, resulting in a solvency ratio of
58.2% per 30 June 2011 (31 December 2010: 49.3%). In relation to
the Company’s liquidity, DOCDATA N.V. has realised in the first
half-year 2011 a cash flow from operating activities of € 1.9
million. Furthermore, cash was received in the first half-year 2011
from the exercise of share options in the amount of € 1.4 million,
resulting in a total cash-in of € 3.3 million. In the first
half-year 2011 the Group has invested a total amount of € 4.6
million, containing € 2.4 million for payment of dividend from the
2010 profit, € 1.8 million for capital expenditure in property,
plant and equipment (mainly warehouse equipment in Waalwijk and
Grobeeren) and € 0.3 million
for investments in intangibles (mainly IT development costs for the
payments platform and development costs by IAI for new generation
security systems). As a result, the cash surplus decreased with €
1.3 million to a net cash balance of € 4.5 million per 30 June 2011
(31 December 2010: € 5.8 million).

Outlook

The focus in 2011 will be kept on growth, both autonomous and
through acquisitions. Acquisitions will mainly be aimed at further
strengthening of our position in the markets in which we
operate.

The focus of the e-commerce service company Docdata is on
further development of our position in the Benelux, Germany and the
UK. In addition, we will analyse in the second half-year of 2011
the possibilities to become active in other European markets. Based
on our current client base, we expect for the second half-year of
2011 further growth with only a limited impact of non-recurring
costs on profit, as was the case in the previous years 2009 and
2010.

The focus for the technology company IAI industrial systems
remains on the realisation of orders worldwide in existing and
specifically defined markets. Considering the order book level of
IAI industrial systems as at 30 June 2011, combined with the length
of the time between an order and the completion and delivery of
systems at the client, we expect lower revenues and results for IAI
industrial systems for the full year 2011 as well.

Strategy

As the current strategy ‘Vision 2012: Flywheel to Growth’ runs
till 2012, the management of DOCDATA N.V. currently executes a
strategic study together with an external party. All strategic
options will be addressed and discussed extensively. The outcome
will serve as input for the strategic route in the coming years and
we expect to be able to present further announcements by the end of
2011.

Accounting policies

The consolidated financial statements of DOCDATA N.V. are
prepared in accordance with the International Financial Reporting
Standards as adopted by the European Union (hereafter IFRS). For an
overview of the significant accounting policies under IFRS, please
refer to the 2010 Annual Report that is available at the Company
and can also be downloaded from the Company’s corporate website, href="www.docdatanv.com/">www.docdatanv.com. The
interim financial report has been prepared in accordance with IAS
34 (’Interim Financial Reporting’).

Audit

The financial information included in this interim report and
its enclosures have not been audited by the external auditors.

Enclosure with financial
information

For a detailed review of the 2011 half-year results please refer
to the attached enclosure ‘Interim Financial Information for the
half-year ended 30 June 2011‘ with Appendix.

Meeting for financial press and
analysts

Today, Thursday 21 July 2011, management of DOCDATA N.V. will
discuss the 2011 halfyear results in a meeting for which both
financial press and analysts have been invited, to be held at
10.30AM Amsterdam time in the Mercurius room of the Financieel
Nieuwscentrum Beursplein 5 of NYSE Euronext Amsterdam
(Beursplein 5, 1012 JW  Amsterdam, telephone
+31-20-5505505). After this meeting, the presentation shown to the
financial press and analysts will be made available for downloading
from the Company’s corporate website, href="www.docdatanv.com/">www.docdatanv.com.

——————————————

The listed DOCDATA N.V. exists of two lines of
business
:

Technology company IAI industrial systems
( href="www.iai-industrial-systems.com/">www.iai-industrial-systems.com
) is a high tech engineering company specialised in developing and
building systems for very accurate and high speed processing of all
kinds of products and materials. IAI delivers clients globally in
the following sectors: securing and personalising of security
documents, processing of solar cells and modules and processing of
other materials and products.

E-commerce service company Docdata ( href="www.docdata.com/">www.docdata.com)
is a European market leader with a strong basis in The Netherlands,
Germany and the United Kingdom. Docdata offers a complete
e-commerce service portfolio to clients, enabling them to be
successful on the internet.

Responsibility Statement

Statement pursuant to article 5:25d section 2 sub c of the Dutch
Financial Supervision Act (”Wet financieel toezicht”, Wft)

The DOCDATA N.V. Management Board declares, that to the best of
their knowledge:

1.    the interim financial statements of DOCDATA
N.V., as set out on pages 8 to 18 of this report, give a true and
fair view of the assets, the liabilities and the financial position
as at 30 June 2011 and the profit for the half-year ended 30 June
2011
of DOCDATA N.V. and its consolidated subsidiaries;

2.    the interim report of DOCDATA N.V., as set out
on pages 1 to 6 of this report, includes a true and fair review of
the position as per 30 June 2011 and of the development and
performance during the half-year ended 30 June 2011 of DOCDATA N.V.
and the associated companies, of which the information is included
in the interim financial statements. In addition, the interim
report gives a true and fair review of the expected developments,
investments and circumstances of which the development of revenue
and profitability depend.

Waalwijk, 21 July 2011

The Management Board,

M.F.P.M. Alting von Geusau, CEO

M.E.T. Verstraeten, CFO

Interim Financial Information

The interim financial information is prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union (hereafter “IFRS”) and its interpretations adopted
by the International Accounting Standards Board (IASB).

Revenue


                                                             Half-year ended
                                             Half-year ended
    (in thousands, except percentage                            30 June 2010
    figures)                                   30 June 2011
    Revenue by line of business                   EUR      %       EUR      %

    E-commerce service company Docdata         53,608   90.9    35,666   77.6
    Technology company IAI industrial
    systems                                     5,374    9.1    10,323   22.4
    Total                                      58,982  100.0    45,989  100.0
  • Total combined revenue of the Docdata e-commerce services
    (commerce, payments and fulfilment) increased with € 20.7
    million (+69%), including a negative foreign exchange effect of
    € 0.1 million. This combined revenue increased for € 15.5
    million due to autonomous growth (+59%), while the activities of
    the former Dohmen Solutions Group, acquired per 16 April 2010,
    contributed € 5.2 million to this revenue increase (revenue
    contribution 2.5 months in the half-year ended 30 June 2010).
    Revenue of the media replication activities decreased with
    € 2.7 million in total, of which € 2.3 million due to the
    sale of all shares of docdata media GmbH on 21 July 2010; the
    other € 0.4 million of this decrease (-/-11%) was due to
    declining revenue from the media replication activities in
    Tilburg.
  • IAI industrial systems’ revenue decreased € 4.9 million
    (47.9%). The revenue for the half-year ended 30 June 2010 was
    much higher due to the delivery of the second part of the Bulgarian
    order (consisting of a number of decentralised personalisation
    systems). The revenue in the half-year ended 30 June 2011 was for a
    large part realised through the delivery, in accordance with IAI’s
    planning, of security systems for Algeria and Ireland.

Gross profit

                                                                  Half-year
                                                                    ended
    (in thousands, except percentage        Half-year ended 30
    figures)                                     June 2011       30 June 2010
    Gross profit (margin) by line of
    business
    (margin as % of revenue by line of
    business)                                     EUR        %     EUR      %

    E-commerce service company Docdata         12,616     23.6   8,563   24.0
    Technology company IAI industrial
    systems                                     1,519     28.8   4,126   40.0
    Total                                      14,135     24.0  12,689   27.6
  • The gross profit of the e-commerce service company Docdata
    increased with € 4.1 million (+47%). The combined gross profit of
    the e-commerce services contributed € 12.1 million compared to €
    7.6 million in the half-year ended 30 June 2010, representing an
    increase of 59%, which is mainly the result of the growth in the
    number of transactions in the Netherlands and Germany. The somewhat
    lower gross profit margin is mainly caused by a higher revenue
    portion from recharged transport costs and higher purchased goods
    for a corporate fashion client.
  • The gross profit of IAI industrial systems decreased with € 2.6
    million (-/-63%) due to lower sales and a different sales mix
    compared to the half-year ended 30 June 2010 (also causing the
    decrease in gross profit margin). The systems’ delivery of the
    second part of the Bulgarian order in the half-year ended 30 June
    2010
    had a major effect on the higher gross profit for the
    comparable figure.

Operating profit before financing result (EBIT)
Selling & Administrative expenses
Other operating income and expenses

                                             Half-year ended  Half-year ended
    (in thousands, except percentage
    figures)                                   30 June 2011     30 June 2010
    Operating profit (margin) by line of
    business
    (margin as % of revenue by line of
    business)                                     EUR      %      EUR       %

    E-commerce service company Docdata          3,036    5.7      352     1.0
    Technology company IAI industrial
    systems                                       496    9.2    2,807    27.2
    Total                                       3,532    6.0    3,159     6.9

    Selling & Administrative expenses (as %
    of revenue)
    Selling expenses                            3,081    5.2    2,681     5.8
    Administrative expenses                     7,535   12.8    6,876    15.0
    Total                                      10,616   18.0    9,557    20.8

    Selling & Administrative expenses by
    line of business (as % of revenue by
    line of business)
    E-commerce service company Docdata          9,586   17.9    8,219    23.0
    Technology company IAI industrial
    systems                                     1,030   19.2    1,338    13.0
    Total                                      10,616   18.0    9,557    20.8

    Other operating income and expenses
    (as % of revenue)
    Other operating income                        150    0.3      265     0.6
    Other operating expenses                    (137)  (0.3)    (238)   (0.5)
    Net other operating expenses                   13      -       27     0.1
  • The operating profit of the e-commerce service company Docdata
    increased with € 2.7 million, resulting from a € 4.1 million
    higher gross profit and € 1.4 million higher selling and
    administrative expenses. Following the acquisition of the
    activities from the former Dohmen Solutions Group per 16 April
    2010
    , restructuring costs and start-up losses were recorded
    resulting in a nonrecurring EBIT loss for an amount of € 1.3
    million in the half-year ended 30 June 2010 (recognised both under
    selling and administrative expenses). In the half-year ended 30
    June 2011
    further restructuring costs were recorded for an amount
    of € 0.2 million. Excluding non-recurring expenses, EBIT has almost
    doubled from € 1.7 million to € 3.3 million in the half-year
    ended 30 June 2011.
  • The operating profit of IAI industrial systems decreased with €
    2.3 million. This decrease is the combined effect of a lower gross
    profit of € 2.6 million and decreased selling and administrative
    expenses of € 0.3 million. Selling and administrative expenses
    decreased mainly as a result of a lower contribution to allocated
    holding expenses, given the lower activity level.

Net financing income / (expenses)

Net financing expenses for the half-year ended 30 June 2011
amounted to € 152 thousand compared to net financing income of
€ 130 thousand for the half-year ended 30 June 2010. This
decrease of € 0.3 million is predominantly caused by the foreign
currency exchange result in the half-year ended 30 June 2011 (€ 0.1
million loss) compared to the half-year ended 30 June 2010
(€ 0.2 million profit) related to the British pound.

Income tax expense

DOCDATA’s effective tax rate in the half-year ended 30 June 2011
was 27.1% with an income tax expense of € 0.9 million on a
profit before income tax of € 3.4 million. In the half-year ended
30 June 2010, the profit before income tax amounted to € 3.3
million and the income tax expense amounted to € 0.7 million
(effective tax rate: 22.3%).

The income tax expense of € 0.9 million in the half-year ended
30 June 2011 is the combined result of the following tax treatments
of the results per country:

  • In the Netherlands, income taxes are recorded at a corporate
    income tax rate of 25.0% on the taxable income for the Dutch fiscal
    entity as well as for the Dutch subsidiaries that are not part of
    this fiscal entity (2010: 25.5%).
  • In the United Kingdom, income taxes are recorded against a
    corporate income tax rate of 27.0% (2010: 28.0%).
  • In Germany, income taxes are recorded at a corporate income tax
    rate of in general between 26% and around 30% on taxable income for
    the German entities when and where applicable, depending on the
    actual region in Germany of their legal seat (e.g. Berlin, Munich
    or Münster region).

Liquidity and capital resources

The General Annual Meeting of Shareholders held on 15 June 2011
approved the proposal to distribute a dividend of € 0.35 per
ordinary share outstanding (excluding own shares held by the
Company), which had a decreasing impact of € 2.4 million on
retained earnings within the equity of the Company in the half-year
ended 30 June 2011.

In the half-year ended 30 June 2011, the Group realised net cash
from operating activities of € 1.9 million. Furthermore,
cash was received from the exercise of share options in the amount
of € 1.4 million, resulting in a total cash-in of € 3.3
million for the half-year ended 30 June 2011. With these funds, the
Group invested in the half-year ended 30 June 2011 a total amount
of € 4.6 million, containing € 2.4 million for payment of the
2010 dividend, € 1.8 million in property, plant and equipment
(mainly warehousing equipment in Waalwijk and Groβbeeren), and €
0.3 million in intangibles (IT development costs for the payments
platform and development costs by IAI for new generation security
systems). As a result, the net cash position of the Group has
decreased with € 1.3 million to € 4.5 million per 30 June 2011
(31 December 2010: € 5.8 million). Furthermore, the Group has fully
repaid in the half-year ended 30 June 2011 the € 4.0 million credit
facility drawn with Commerzbank AG in 2010 and has increased the
existing credit facility with Deutsche Bank Nederland N.V. from €
5.0 million to € 10.0 million.

In the half-year ended 30 June 2011 187,500 share options were
exercised from the 2006, 2007 and 2008 series at an average
exercise price of € 7.24 per share. The underlying shares have been
delivered by the Company from the shares in stock. The proceeds of
€ 1.4 million have been credited to equity (’Reserve for own
shares’). Per 30 June 2011, the Company had 156,642 own shares in
stock (2.24%), which number is the same as the number of own shares
currently owned by the Company per 21 July 2011. Per 30 June 2011 a
total number of 167,250 share options are outstanding; 79,500 share
options of the 2008 series (exercise price: € 6.83 per share) that
are exercisable and ‘in-the-money’, and 87.750 share options of the
2009 series (exercise price: € 6.38 per share) that will vest on 29
May 2012
. Furthermore, a total number of 70,539 Performance Shares
are outstanding per 30 June 2011, which have been granted
conditionally in 2010 (22,284 Performance Shares; vesting date: 14
May 2013
) and 2011 (48,255 Performance Shares; vesting date: 17
June 2014
).

Waalwijk, 21 July 2011

Consolidated Interim Financial
Statements

1. Consolidated Balance Sheets

Balance sheets before appropriation of profit.

                                                      30 June  31 December

                                                         2011         2010
    (in thousands)                                        EUR          EUR

    Assets

    Property, plant and equipment                      10,576       10,431
    Intangible assets                                   9,267        9,690
    Investments in associates                             117           62
    Other investments                                      95           95
    Trade and other receivables                           200          200
    Deferred tax assets                                 1,280        1,001
    Total non-current assets                           21,535       21,479

    Inventories                                         6,330        5,436
    Income tax receivables                                 44          407
    Trade and other receivables                        17,761       18,840
    Cash and cash equivalents                           4,490        9,790
    Total current assets                               28,625       34,473

    Total assets                                       50,160       55,952

    Equity

    Share capital                                         700          700
    Share premium                                      16,854       16,854
    Translation reserves                                (813)        (669)
    Reserve for own shares                            (1,310)      (2,810)
    Retained earnings                                  10,942        9,474
    Unappropriated profits                              2,535        3,853
    Total equity attributable to equity holders of
    the parent                                         28,908       27,402
    Non-controlling interest                              286          156
    Total equity                                       29,194       27,558

    Liabilities

    Interest-bearing loans and borrowings                   -            -
    Deferred tax liabilities                              516          530
    Total non-current liabilities                         516          530

    Bank overdrafts                                         -        4,000
    Interest-bearing loans and borrowings                   -          190
    Income tax payable                                  1,122          453
    Trade and other payables                           19,053       22,781
    Provisions                                            275          440
    Total current liabilities                          20,450       27,864

    Total liabilities                                  20,966       28,394

    Total equity and liabilities                       50,160       55,952

2. Consolidated Income Statements

                                             Half-year ended  Half-year ended

                                               30 June 2011     30 June 2010
    (in thousands, except earnings per share
    and average shares outstanding)               EUR      %       EUR      %

    Revenue                                   58,982  100.0    45,989  100.0
    Cost of sales                            (44,847) (76.0)  (33,300) (72.4)
    Gross profit                              14,135   24.0    12,689   27.6

    Other operating income                       150    0.2       265    0.6
    Selling expenses                          (3,081)  (5.2)   (2,681)  (5.8)
    Administrative expenses                   (7,535) (12.8)   (6,876) (15.0)
    Other operating expenses                    (137)  (0.2)     (238)  (0.5)

    Operating profit before financing result   3,532    6.0     3,159    6.9

    Financial income                              98    0.1       240    0.5
    Financial expenses                          (250)  (0.4)     (110)  (0.2)
    Net financing income / (expenses)          (152)  (0.3)       130    0.3

    Share of profits of associates                55    0.1         -      -

    Profit before income tax                   3,435    5.8     3,289    7.2

    Income tax expense                          (931)  (1.6)     (734)  (1.6)

    Profit for the period                      2,504    4.2     2,555    5.6

    Attributable to:
    Equity holders of the parent               2,535    4.3     2,662    5.8
    Non-controlling interest                     (31)  (0.1)     (107)  (0.2)
    Profit for the period                      2,504    4.2     2,555    5.6

    Weighted average number of shares
    outstanding                            6,728,000        6,649,000
    Weighted average number of shares
    (diluted)                              7,000,000        7,000,000

    Earnings per share
    Basic earnings per share                    0.38             0.38
    Diluted earnings per share                  0.36             0.37

3. Consolidated Statements of Cash Flows

                                                     Half-year      Half-year
                                                         ended          ended

                                                 30 June 2011   30 June 2010
    (in thousands)                                        EUR            EUR

    Cash flows from operating activities
    Profit for the period                               2,504          2,555
    Adjustments for:
    Depreciation and amortisation                       2,231          1,490
    Costs share options, performance shares and
    delivered shares                                      141             73
    Financial expenses                                    156            110
    Financial income                                       (4)          (240)
    Share of profits of associates                        (55)             -
    Income tax expense                                    931            734

    Cash flows from operating activities before
    changes in working capital and provisions           5,904          4,722

    (Increase) / decrease in trade and other
    receivables                                           986            777
    (Increase) / decrease in inventories                 (894)         1,319
    Increase / (decrease) in trade and other
    payables                                           (3,775)        (2,132)
    Increase / (decrease) in provisions and
    employee benefits                                    (165)          (437)
    Cash generated from the operations                  2,056          4,249

    Interest paid                                        (159)          (108)
    Interest received                                      97             81
    Income taxes received / (paid)                        (76)         1,199
    Net cash from operating activities                  1,918          5,421

    Cash flows from investing activities
    Acquisition of property, plant and equipment       (1,800)        (3,213)
    Acquisition of intangible assets                     (342)        (1,299)
    Acquisition of subsidiaries                             -              -
    Acquisition of associates and other
    investments                                             -              -
    Proceeds from sale of property, plant and
    equipment                                              11              6
    Net cash from investing activities                 (2,131)        (4,506)

    Cash flows from financing activities
    Proceeds from exercise of share options             1,359             13
    Repayment of bank overdrafts                       (4,000)             -
    Dividends paid                                     (2,385)        (3,658)
    Repayment of interest-bearing loans and other
    borrowings                                            (29)             -
    Proceeds from bank overdrafts                           -          4,400
    Net cash from financing activities                 (5,055)           755

    Net increase / (decrease) in cash and cash
    equivalents                                        (5,268)         1,670
    Cash and cash equivalents at the beginning of
    the period                                          9,790          6,147
    Effect of exchange rate fluctuations on cash
    held                                                  (32)           (93)

    Cash and cash equivalents at the end of the
    period                                              4,490          7,724

4. Consolidated Statements of Shareholders
Equity


                      Share   Share          Retained
                    capital premium Reserves earnings
    (in thousands)      EUR     EUR      EUR      EUR
                                    (Note 1) (Note 2)

    Equity
    Statement 2010

    Balance at 1
    January 2010        700  16,854   (3,970)   13,720
    Dividend
    distribution          -       -        -    (3,658)
    Exercised share
    options               -       -       13         -
    Costs share
    options               -       -       73         -
    Realised
    translation
    differences           -       -      270      (270)
    Unrealised
    exchange rate
    results               -       -      243         -
    Profit for the
    period                -       -        -     2,662
    Balance at 30
    June 2010           700  16,854   (3,371)   12,454

    Balance at 1
    July 2010           700  16,854   (3,371)   12,454
    Costs share
    options               -       -       44         -
    Unrealised
    exchange rate
    results               -       -     (152)        -
    Acquisition of
    non-controlling
    interest              -       -        -      (318)
    Profit for the
    period                -       -        -     1,191
    Balance at 31
    December 2010       700  16,854   (3,479)   13,327

    Equity
    Statement 2011

    Balance at 1
    January 2011        700  16,854   (3,479)   13,327
    Dividend
    distribution          -       -        -    (2,385)
    Exercised share
    options               -       -    1,359         -
    Costs share
    options               -       -      141         -
    Unrealised
    exchange rate
    results               -       -     (144)        -
    Transfer
    minority
    shareholder
    loan in share
    premium
    non-controlling
    interest              -       -        -         -
    Profit for the
    period                -       -        -     2,535
    Balance at 30
    June 2011           700  16,854   (2,123)   13,477

    (table continued)
                       Total equity
                       attributable
                          to equity
                         holders of Non-controlling   Total
                         the parent        interest  equity
    (in thousands)              EUR             EUR     EUR

    Equity
    Statement 2010

    Balance at 1
    January 2010             27,304             107  27,411
    Dividend
    distribution             (3,658)              -  (3,658)
    Exercised share
    options                      13               -      13
    Costs share
    options                      73               -      73
    Realised
    translation
    differences                   -               -       -
    Unrealised
    exchange rate
    results                     243               -     243
    Profit for the
    period                    2,662            (107)  2,555
    Balance at 30
    June 2010                26,637               -  26,637

    Balance at 1
    July 2010                26,637               -  26,637
    Costs share
    options                      44               -      44
    Unrealised
    exchange rate
    results                    (152)              -    (152)
    Acquisition of
    non-controlling
    interest                   (318)             92    (226)
    Profit for the
    period                    1,191              64   1,255
    Balance at 31
    December 2010            27,402             156  27,558

    Equity
    Statement 2011

    Balance at 1
    January 2011             27,402             156  27,558
    Dividend
    distribution             (2,385)              -  (2,385)
    Exercised share
    options                   1,359               -   1,359
    Costs share
    options                     141               -     141
    Unrealised
    exchange rate
    results                    (144)              -    (144)
    Transfer
    minority
    shareholder
    loan in share
    premium
    non-controlling
    interest                      -             161     161
    Profit for the
    period                    2,535             (31)  2,504
    Balance at 30
    June 2011                28,908             286  29,194

Note 1

Reserves in the Consolidated Statement of Shareholders’ Equity
consists of the balances for Translation reserves and Reserve for
own shares.

Note 2

Retained earnings in the Consolidated Statement of Shareholders’
Equity consists of the balances for Retained earnings (from prior
years) and Unappropriated profits, equal to the Profit for the
period for all disclosed half-year periods, ended 30 June 2010, 31
December 2010
and 30 June 2011 respectively.

5. Consolidated Statements of recognised Income and
Expense

                                                   Half-year  Half-year

                                                        2011       2010
    (in thousands)                                       EUR        EUR

    Foreign exchange translation differences,
    net of tax                                          (144)       243
    Income / (Expense) recognised directly in
    equity                                              (144)       243

    Profit for the period                              2,504      2,555

    Total recognised income and expense for the
    period                                             2,360      2,798

    Attributable to:

    Equity holders of the parent                       2,391      2,905
    Non-controlling interest                             (31)      (107)
    Total recognised income and expense for the
    period                                             2,360      2,798

6. Notes to the Consolidated Interim Financial
Statements

6.1     Reporting entity

DOCDATA N.V. (referred to as “DOCDATA” or the “Company”) is a
company domiciled in Waalwijk, the Netherlands. The consolidated
interim financial statements of DOCDATA N.V. as at and for the
half-year ended 30 June 2011 comprise DOCDATA N.V. and its
subsidiaries (together referred to as the “Group”) and the Group’s
interest in associates and jointly controlled entities.

The consolidated financial statements of the Group as at and for
the year ended 31 December 2010 are available upon request from the
Company’s registered office at Energieweg 2, 5145 NW in Waalwijk,
the Netherlands, or at the Company’s corporate website, href="www.docdatanv.com/">www.docdatanv.com.

6.2     Statement of
compliance

These consolidated interim financial statements have been
prepared in accordance with IAS 34 (Interim Financial Reporting).
They do not include all of the information required for full annual
financial statements, and should therefore be read in conjunction
with the consolidated financial statements of the Group as at and
for the year ended 31 December 2010.

6.3     Significant accounting
policies

The consolidated financial statements of the Group are prepared
in accordance with the International Financial Reporting Standards
as adopted by the European Union (”IFRS”). The accounting policies
applied by the Group in these consolidated interim financial
statements are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended
31 December 2010. For a summary of the significant accounting
policies under IFRS, please refer to the Group’s Annual Report for
the financial year ended 31 December 2010.

6.4     Audit

The consolidated interim financial statements and the
reconciliations included in this report and its enclosures have not
been audited by the external auditors.

6.5     Management
representations

In the opinion of the management, these consolidated interim
financial statements include all adjustments necessary for a fair
presentation of the financial position, operating results and cash
flows of all reporting periods herein. All such adjustments are of
a normal recurring nature, except for recorded non-recurring
expenses related to the acquisition of the former Dohmen Solutions
business activities (including acquisition costs, advisory fees,
restructuring expenses, etc.) recorded in the consolidated interim
financial statements for the half-year ended 30 June 2010.

The results of the operations for the half-year ended 30 June
2011
are not necessarily indicative of the results for the entire
financial year ending 31 December 2011.

6.6     Consolidation

In the consolidated interim financial statements for the
half-year ended 30 June 2011 and the consolidated financial
statements for the year ended 31 December 2010, the following
treatment has been applied for the following incorporations:

  • IAI excimer systems B.V.: per 1 April 2010, IAI
    industrial systems B.V. has incorporated a new legal entity for a
    Dutch subsidiary, IAI excimer systems B.V. in Veldhoven. The
    balance sheet and income statement of IAI excimer systems B.V. have
    been included in the DOCDATA consolidation starting per the date of
    incorporation;
  • Docdata Assets GmbH, Docdata e-Commerce Services GmbH,
    Docdata Fashion Services GmbH
    : these three German subsidiaries,
    wholly owned by docdata germany GmbH, have been incorporated (based
    on new shelf companies, “Blitz GmbH”) to provide the legal
    structure enabling the asset purchase of the former Dohmen
    Solutions activities per 16 April 2010. The balance sheet and
    income statement of these three GmbH’s have been included in the
    DOCDATA consolidation starting per this date;
  • Docdata media GmbH: all shares in this German
    subsidiary, wholly owned by docdata germany GmbH and part of the
    e-commerce service company Docdata, were sold on 21 July 2010 to
    the German investment fund Deutsche Unternehmensbeteiligungen GmbH
    (DUBAG) in Munich. The balance sheet and income statement of
    docdata media GmbH were excluded from the DOCDATA consolidation
    starting per this date. The media replication activities of this
    German subsidiary were fully written off at fair value by the Group
    per the end of the 2009 financial year. The remaining book value of
    these assets and liabilities are reported as assets and liabilities
    classified as held for sale in the Group’s Annual Report for the
    financial year ended 31 December 2009.

6.7     Property, plant and
equipment

                                          30 June  31 December

                                             2011         2010
    (in thousands)                            EUR          EUR

    Land and buildings                      1,182        1,261
    Machinery and equipment                 5,405        6,503
    Office equipment and other              2,445        2,667
                                            9,032       10,431
    Under construction                      1,544            -
    Total                                  10,576       10,431

The book value of property, plant and equipment has increased
with nearly € 0.2 million in the half-year ended 30 June 2011 as a
combined result from capital expenditure for
€ 1.8 million and depreciation charges for
€ 1.6 million. Capital expenditure in the half-year ended
30 June 2011 is for € 1.5 million accounted for as ‘under
construction’, which predominantly relates to the investment by
Docdata Fulfilment in the new state-of-the-art logistic centre in
Waalwijk, the Netherlands. Other capital expenditure for € 0.3
million mainly consists of further investments in fulfilment
warehouses in Germany. At 30 June 2011, extra capital expenditure
was committed for an amount of € 3.0 million in addition to the
amount accounted for ‘under construction’.

6.8     Intangible assets

                                          30 June
                                                    31 December
                                             2011          2010
    (in thousands)                            EUR           EUR

    Development costs                         403           255
    Goodwill                                6,577         6,723
    Customer contracts                        462           703
    Software (IT platforms)                 1,825         2,009
    Total                                   9,267         9,690

The book value for intangible assets has decreased with € 0.4
million during the half-year ended 30 June 2011, due to the
following:

  • capital expenditure in development costs by IAI industrial
    systems (€ 0.1 million) and IT platform of Docdata Payments (€ 0.2
    million in total);
  • amortisation charges for customer contracts and IT platforms (€
    0.6 million in total);
  • currency exchange loss (€ 0.1 million) on the valuation of the
    intangible assets with an original value in British pounds (i.e.
    related to the Braywood and Hitura acquisitions).

6.9     Inventories

                                          30 June
                                                    31 December
                                             2011          2010
    (in thousands)                            EUR           EUR

    Raw and auxiliary materials             1,400         1,260
    Work in progress                        3,696         3,671
    Finished goods                          1,234           505
    Total                                   6,330         5,436

The book value of inventories increased € 0.9 million in the
half-year ended 30 June 2011, which was predominantly caused by an
inventory increase of finished goods (company clothing) for Docdata
Fashion Services GmbH due to purchases for orders in the second
half-year.

IAI industrial systems’ order book developed in the half-year
ended 30 June 2011 from € 8.4 million at 31 December 2010
to € 9.1 million at 30 June 2011 resulting from systems’ deliveries
in the half-year ended 30 June 2011 with revenue of
€ 3.2 million and new orders booked with a total sales
value of € 3.9 million.

6.10     Segmented Consolidated
Income Statement
half-year 2011

                                              E-commerce        Technology
                                                               company IAI
                                           service company      industrial
                                               Docdata           systems
    (in thousands, except earnings per
    share and average shares outstanding)       EUR      %        EUR       %

    Revenue                                  53,608  100.0      5,374   100.0
    Cost of sales                           (40,992) (76.5)    (3,855)  (71.7)
    Gross profit                             12,616   23.5      1,519    28.3

    Other operating income                      142    0.3          8     0.1
    Selling expenses                         (2,742)  (5.1)      (339)   (6.3)
    Administrative expenses                  (6,844) (12.7)      (691)  (12.8)
    Other operating expenses                   (136)  (0.3)        (1)      -

    Operating profit before financing
    result                                    3,036    5.7        496     9.3

    Financial income                             68    0.1         30     0.1
    Financial expenses                         (222)  (0.4)       (28)   (0.1)
    Net financing income / (expenses)          (154)  (0.3)         2       -

    Share of profits of associates                -      -         55     1.0

    Profit before income tax                  2,882    5.4        553    10.3

    Income tax profit / (expense)              (818)  (1.5)      (113)   (2.1)

    Profit for the period                     2,064    3.9        440     8.2

    Attributable to:
    Equity holders of the parent              2,095    3.9        440     8.2
    Non-controlling interest                    (31)     -          -       -
    Profit for the period                     2,064    3.9        440     8.2

Corporate website:     href="www.docdatanv.com/">www.docdatanv.com

PRN NLD

Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31-416-631-100

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