SAF Consolidated Financial Statements 2006 and Q4/2006 Results

– Sales- and net profit guidance for fiscal year 2006 exceeded – Significant sales growth by 84,0 percent to EUR 13,6 million compared with the prior year – Net profit at EUR 4,6 million showing a margin of 33,8 percent in 2006 – Further investing to ensure sustainable growth – Well stuffed sales pipeline from direct business for 2007

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companies/finances/technology/Consolidated Financial Statements 2006

Tägerwilen (euro adhoc) - Taegerwilen/Switzerland, 19 March 2007. SAF AG which is listed on the Prime Standard of the Frankfurt Stock Exchange (ISIN CH0024848738) publishes the figures for the fiscal year 2006 and exceeds the guidance.

SAF Exceeds Guidance for 2006 With the publication of the consolidated financial statements for 2006 the issued guidance for the fiscal year has been exceeded. Sales amounted to EUR 13.6 million at a consolidated net profit of EUR 4.6 million and a net profit margin of 33.8 percent. So the expectations that were once again adjusted in November 2006 (sales EUR 13.3 million, net profit 4.0 million, net profit margin of 30 percent) were exceeded.

Significant Sales Growth of 84 Percent Net Sales developed pleasingly and increased by 84.0 percent compared to the prior year. The rise from EUR 7.4 million in 2005 to 13.6 million (3.9 million in Q4/06) was mainly driven by increases in software licence sales, which more than doubled in the reporting period with a 114.0 percent growth from EUR 4.3 million to EUR 9.1 million (2.5 million in Q4/06). This rise corresponds with the increased number of licences sold. After twelve licence sales in 2005 SAF could sell 25 licences in the reporting period. This is in line with the dynamic growth of the market for automated replenishment solutions. Especially the US market contributed to this development.

Maintenance revenue grew by 107.0 percent from EUR 1.4 million to EUR 2.8 million in 2006 (0.9 million in Q4/06) compared to the prior year. They grew on a pro-rata basis aligned with the stock of licenses with some time lag.

Revenues from services featuring lower margins decreased by 5.5 percent from EUR 1.8 million in 2005 to EUR 1.7 million in 2006 (0.5 million in Q4/06). This decline was characterised by the assignment of SAF consultants in major pre-sales projects, which could be invoiced only in part to the customer. Accordingly the share of services revenues in total sales fell from 24.0 percent in 2005 to 12.3 percent in 2006.

Costs Rise More Slowly Than Sales Costs were rising at a lower rate than sales in line with growing margins. The Company watched the development of costs, which was fundamentally driven by personnel costs, permanently. Operative costs grew by 76.1 percent, from EUR 5.3 million to EUR 9.4 million in 2006 (2.7 million in Q4/06).

Profitable Result Driven by the expansion of licence sales, which are featuring high margins, SAF could achieve significantly better results than in the prior year, also above the planned development of the business.

EBIT could be more than doubled from EUR 2.3 million to EUR 5.0 million (1.4 million in Q 4/06). This reflects an increase of 112.1 percent compared to the prior year. The EBIT margin also rose from 31.8 percent in 2005 by 4.8 percentage points to 36.6 percent in the reporting period (36.6 percent in Q 4/06).

Earnings before tax (EBT) also increased in line with the growth in EBIT. In 2006 the Company achieved an EBT of EUR 5.3 million (1.6 million in Q 4/06), compared to EUR 2.3 million in the prior year. The EBT margin rose from 31.0 to 39.4 percent (41.4 percent in Q 4/06). The financial result, which grew from TEUR - 61 in 2005 to TEUR 369, contributed to the improved EBT.

Due to the relatively low effective tax rate of 11.2 percent at the CompanyÂ’s headquarter in Switzerland, consolidated net profit has increased in line with the strong growth of EBIT and EBT. For 2006 a total effective tax rate, which includes deferred taxes, of 14.2 percent arose. In 2006 a net profit of EUR 4.6 million (1.4 million in Q4/06) was achieved compared to the prior year result of EUR 2.0 million. Compared to the prior year net profit was more than doubled with an increase of 129.1 percent. The net profit margin improved as well from 27.2 percent in 2005 by 6.6 percentage points to 33.8 percent (35.1 percent in Q 4/06) in the reporting period.

Successful Direct Business fills Sales Pipeline for 2007 SAF succeeded in taking a big step forward towards internationalisation. At the end of the fiscal year 2006 SAF managed to close two new customers from Michigan, USA and from the Asia-Pacific area. License revenue resulting from those contracts will enable a good start into 2007.

Investing for Further Growth To realize the growth targets sustainably SAF will have to invest further - in particular in increase of personnel. SAF focuses on the enhancement of the direct sales business especially in the biggest and most important U.S. market as well as in Europe. The capacities for software development will primarily be augmented by growth of the Slovak subsidiary, the own research & development and also by acquisitions. So SAF can address new topics like artificial intelligence and other innovations. Furthermore, new approaches to process optimization on the basis of forecasting solutions shall be offered to the consumer goods and automotive industry.

Outlook Due to a significant share of high margin license sales in total sales, SAF traditionally achieves higher-than-industry-average net profit margins. High amounts invested in new personnel and re-search & development in the reporting period as well as in 2007 enable further sustainable growth of sales and results. While profitability is expected to remain on a high level the Company assumes that net profit growth will be aligned slightly under proportionally to sales growth. At end of May SAF expects to give guidance for the fiscal year 2007 with the announcement of the first quarter results of 2007.

About SAF AG SAF Simulation, Analysis and Forecasting AG specializes in the development of automated ordering and forecasting software for retailers and industrial manufacturers. SAF deploys the demand chain management approach, which controls replenishment planning based on consumer demand patterns. SAF software assists users to realize substantial cost savings and optimizes general logistics conditions through its simulation capabilities. As a result, significant competitive advantages are achieved along the entire value chain: lower inventories, improved product availability, and last, but not least, a higher level of customer satisfaction.

SAF AG was established in 1996 by Dr. Andreas von Beringe and Prof. Dr. Gerhard Arminger. Today, the company employs approx. 80 people. Consolidated sales revenues for fiscal year 2006, were approx. 13.6 million EUR with consolidated profit of 4.6 million EUR according to IFRS statements. SAF’s products are distributed in many European countries as well as in the United States. The company is headquartered in Tägerwilen, Switzerland. SAF also has a subsidiary in the United States: SAF USA, Inc., Grapevine, Texas and in Slovakia, Bratislava: SAF Simulation, Analysis and Forecasting Slovakia s.r.o. with the focus on Nearshore-Development.

Note The complete annual financial statements of 2006 as well as financial tables are digitally available under: Please click on "Investor Relations" or call +41 (0)71 666 79 48. The annual report including the management report and the image section will presumably be available in .pdf format as of mid April 2007.

Forward Looking Statements and Estimates This information contains forward looking statements based on assumptions and estimates of SAF's Management Board. Although we assume the expectations in these forward looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward looking statements. Factors that may cause such discrepancies include, among other things, risks that are mentioned in the Offering Memorandum. SAF does not plan to update the forward looking statements, nor does it assume the obligation to do so.

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ots Originaltext: SAF AG
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Further inquiry note:
Astrid Strömer
+41 (0)71 666 79 48

Branche: Software
ISIN:      CH0024848738
WKN:        A0JD78
Index:    Technologie All Share, Prime All Share
Börsen:  Frankfurter Wertpapierbörse / official dealing/prime standard
              Börse Berlin-Bremen / free trade
              Baden-WĂĽrttembergische Wertpapierbörse / free trade
              Börse DĂĽsseldorf / free trade
              Bayerische Börse / free trade

Weitere Meldungen: SAF AG

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