Annual Report 2010 - S&T

Foreword by the Management Board | Positioning and Markets | Investor Relations | Corporate Governance | Group Management Report | Consolidated Financial Statements | Service
Revenue development in the two strategic segments varied
considerably, comparable to the situation in the prior year, and
was foreseeable in the course of the financial year. Whereas
the IS segment revenue remained stable compared to the
previous year’s level, BS revenue dropped by 28 %.
An analysis of the profit contributions generated by the two
segments also did not show a unified development. Whereas
the negative earnings contributions in the BS segment were
almost completely compensated by the positive results in the
IS segment in 2009, this was no longer possible in 2010 due to
the previously-mentioned business development. As a result
of decreased earnings, the preponderance of costs compared
to earnings and the extraordinary write-downs on goodwill,
the BS segment posted a massive loss of EUR -38.3 million.
In contrast, the IS segment generated positive results of EUR
3.5 million, though considerably below the prior-year level.
The assumptions underlying segment reporting and detailed
segment results are presented in Point 1 of the Notes to the
consolidated financial statements.
Cash flow
CONDENSED CASH FLOW STATEMENT (in EUR million) 2010 Change 2009 *)
Cash flow from operating activities -15.1 – 5.3
Cash flow from investing activities -0.4 -86 % -2.8
Cash flow from financing activities 0.9 – -5.4
Cash and cash equivalents at the end of the year 13.2 -52 % 27.3
*) Reclassified in accordance with IFRS 5
Due to the negative EBITDA and lower net cash inflow from working capital management (EUR 6.3 million compared to EUR 13.8
million in 2009), the cash flow from operating activities was negative at EUR -15.1 million. As a result of the economic situation,
discretionary investments were curtailed, so that there was only a cash outflow from investing activities of EUR -0.4 million.
The cash flow from financing activities showed a slight rise in new debt of EUR 0.9 million.
On balance, cash and cash equivalents at the end of the year fell by EUR 14.1 million to EUR 13.2 million, which can be mainly
attributed to the negative cash flow from operating activities.
Assets, finances and liquidity
KEY BALANCE SHEET FIGURES 2010 Change 2009 *)
Total assets in EUR million 181.4 -16 % 216.8
Shareholders’ equity in EUR million -13.5 -140 % 33.4
Equity ratio in % -7.4 – 15.4
Working capital in EUR million 1) 24.4 -15 % 28.8
Net financial liabilities in EUR million 2) 69.2 34 % 51.8
Gearing in % 3) 45.0 – 36.5
Liquidity ratio 4) 0.83 -35 % 1.27
Market capitalization at year-end in EUR million 5) 19.2 -57 % 44.8
1) Current assets (excluding cash and cash equivalents) less current liabilities (excluding financial liabilities)
2) Non-current and current financial liabilities less cash and cash equivalents
3) Non-current and current financial liabilities in relation to total assets
4) Current assets in relation to current liabilities
5) Number of shares multiplied by the share price at the end of the financial year
*) Reclassified in accordance with IFRS 5
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