S&T AG

euro adhoc: S&T System Integration&Technology Distribution AG
Financial Figures/Balance Sheet
S&T ends the 2008 financial year with a good fourth quarter

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11.02.2009

Services and consulting business continues to grow

At S&T, the 2008 business year was characterized by qualitative growth. Despite the global financial crisis, according to preliminary figures the company increased the share of the solutions and services business as a percentage of total sales to 51% (2007: 45%). In 2008, S&T achieved total sales of 512 million euros, an EBIT of 9.1 million euros and an EBITDA of 16.4 million euros.

Despite the difficult market conditions, the S&T Group achieved sales of 512 million euros in 2008 and thereby kept pace with the record year in 2007 (522.2 million euros). The development of sales figures in the solutions and services business was particularly pleasing and in accordance with the group´s strategy: the sales for Software Solutions and IT/SAP Consulting (Business Solutions) rose by more than 5% to 157 million euros (2007: 149 million euros) and the Managed Services sales (Outsourcing und Outtasking) increased outstandingly by almost 20% to 103 million euros (2007: 86 million euros). Thus, these two areas combined constitute 51% of total sales. This increase was attained with the existing staff - an indication of the success of the group´s productivity efficiency measures in these personnel-intensive fields. The Enterprise Systems business registered sales in 2008 of 252 million euros (2007: 287 million euros), further improved margins and increased its positive influence on the services and consulting business. As IT equipment is primarily settled in US dollars, around half of the decrease in sales in this area resulted from currency effects, due to the weakness of the dollar.

Profitable Q4 The fourth quarter, which is traditionally strong for the IT services sector, was also profitable in 2008 for S&T, although the crisis was having a considerable effect on the IT market by the end of the year. In Q4 2008, S&T achieved sales of 150 million euros (Q4 2007: 170 million euros) and an EBIT of 4.1 million euros (Q4 2007: 6.9 million euros). "In particular the fourth quarter turned out satisfactorily despite the economic downturn and despite internal restructuring. During the course of the year we successively implemented packages of measures which were originally intended to contribute to an outstanding EBIT result. These have ultimately led to us achieving respectable and positive results", comments Christian Rosner, CEO S&T.

Stable Position With an EBIT of 9.1 million euros (2007: 13 million euros) and an EBITDA of 16.4 million euros (2007: 20 million euros), S&T could not entirely avoid the effects of the economic downturn in 2008. However, in view of the good initial position, the consistent application of the business strategy and the stability measures implemented, the management sees no reason for a depreciation of company value. The pre-tax results were weighed down by the general currency volatility in certain S&T countries as well as by the fall in value of the Ukrainian Hryvnia and Romanian Lei currencies. In all, a break-even net result can be expected for the 2008 financial year. "Considering the economic conditions and the development of the IT market, we are satisfied overall with 2008. We had admittedly expected much better results in a number of countries, such as Russia, Hungary, China and Turkey, and somewhat better in DACH as well, but the majority of the countries fulfilled their goals outstandingly", says Rosner. In addition to exchange rate volatility, the financing of large projects proved to be problematic due to the restrained attitude of banks. Extraordinary costs also arose in 2008 due to the necessity for project reorganization in a number of cases in the first half of the year and the new organizational structure implemented in the group in the second half of the year. At the end of the year S&T employed 3,135 staff and therefore maintained stable staffing levels in comparison to 2007. Rosner: "We are well prepared for the hard times ahead and still see potential for us even in 2009, due to consolidation in the market".

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ots Originaltext: S&T System Integration & Technology Distribution AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Gabriela Mair
Head of Corporate Communications
T: +43 1 367 80 88 1024
Mobil: +43 664 60191 1024
Gabriela.Mair@snt-world.com
www.snt-world.com

Branche: Computing & Information Technology
ISIN:      AT0000905351
WKN:        
Index:    WBI, ATX Prime
Börsen:  Wiener Börse AG / official market



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