30 July 2009

Q2 2009

Teleplan delivers improved profitability in the first six months 2009

• EBITDA and Net Income have grown by 26% and 46% respectively
• Strong cash generation leads to reduction of net debt to 32 million Euro

Zoetermeer, Netherlands, 30 July 2009. Teleplan International N.V. (Prime Standard, ISIN: NL0000229458), the leading global provider of high-tech after-sales service for the Computer, Communication and Consumer Electronics industry announced today its half-year 2009 results. The second quarter 2009 showed an even stronger performance on earning levels compared to an already solid first quarter 2009.

Teleplan posted a consolidated revenue of 144.9 million Euros in the first six months representing a 5.5% decrease from the 153.3 million Euro reported over the same period last year. This decline was mainly driven by the Consumer Electronics segment partially caused by the discontinuation of a low margin logistics activity for one customer. Volume reductions in the Computer and Consumer Electronics segments further reduced the top line in the first half year 2009. Total Revenue in the second quarter 2009 was 70.3 million Euro.

“As we continued to build on our focus and efforts in ongoing strict cost control, Teleplan’s cost structure benefited from savings in all categories. This allowed us to deliver increased profitability while revenue was impacted by a softened demand”, Gotthard Haug, CEO of Teleplan, commented the business development in the first six months 2009.

Raw materials and consumables used in the first half of 2009 were 9.4% lower than the same period last year. Gross margin for the second quarter was 60.0% slightly lower than the 60.5% achieved in the first quarter. Personnel costs for the half year 2009 were 6.6% lower than last year reflecting a headcount reduction of 670 employees compared with the same period 2008. Personnel costs represented 36.6% of revenue. Other operating costs decreased by EUR 1.9 million Euro reflecting strict cost control on discretionary cost items for example travel and representation.

Despite the reduction in revenue in the first half 2009, Teleplan was able to deliver an increased EBITDA to 15.7 million Euro compared to 12.5 million Euro for the same period last year. The EBITDA margin improved from 8.1% in the prior year to 10.8% in 2009.

Amortization and depreciation amounted to 2.5 million Euro in the period under review, in line with the 2.4 million Euro for the same period last year. Operating income (EBIT) for the first half 2009 improved by 31% to 13.2 million Euro versus the first half 2008, resulting in an EBIT margin of 9.1% (6.6% in 2008). The EBIT contribution in the second quarter 2009 was 6.6 million Euro and the equivalent EBIT margin 9.4% (previous year: 6.8%).

Net income for the first half 2009 increased by 46% to 7.1 million Euro compared with 4.9 million Euro in the previous year and consequently earnings per share increased to 0.12 Euro (previous year: 0.08 Euro).

The operating cash flow amounted to 17.2 million Euro in the first half of 2009, up from 6.3 million Euro one year earlier. This was due to a strict working capital management and tight management of collecting receivables. The strong cash generation in the second quarter 2009 enabled Teleplan to make an early repayment of bank loans of approximately 10 million Euro reducing net debt to 32.0 million Euro.

“For the second half of 2009 we expect the global economic downturn to have a larger impact on Teleplan’s business, due to price pressure from customers and potential volume reductions in the market. Therefore we will continue to tightly manage the operating expenses and to adjust the cost position to the market situation in the various business units to continue delivering solid financial performance and to bring our net debt position further down in the upcoming six months”, commented Gotthard Haug on the second half year 2009.

At a glance: Teleplan’s key figures (IFRS)