IDS Scheer continues worldwide growth and doubles profit

* Operating profit exceeds expectations, EBIT margin up to 14.5%
* Net profit increases by 110%
* International profit through first half triples
* ARIS licences grow by 21% to 40 600 installed licences
* Worldwide revenue expands to nearly 92 million EUR

IDS Scheer once again posted profitable growth in the first half of 2003: Operating profit exceeded projections, growing by 63% to 13.3 million EUR (previous year: 8.2 million EUR) and achieved an EBIT margin of 14.5% compared to 9.4% in the first half of 2002. Profit for the period grew by 110% to 8.5 million EUR (previous year: 4.1 million EUR). Total revenue for the IDS Scheer Group from software and consulting for business process management increased by 5.3% to 91.6 million EUR (previous year: 87.0 million EUR).

"We are very proud to be associated with IDS Scheer and its successful ARIS software," says Dawie Jacobs from Collaborative Process Integration (CPI), value-added reseller for IDS Scheer in SA. "These outstanding financial results re-confirm their position as one of the top companies that develops solutions for business process management."

Exceptionally strong and profitable growth rates were posted in the international subsidiaries as well as in the product area. Revenue in the IDS Scheer International segment grew by nearly 15% to 37.1 million EUR (previous year: 32.2 million EUR). Operating profit for the subsidiaries outside Germany increased sharply from 0.7 million EUR in the first half of 2002 to 2.3 million EUR. Revenue from products and product-related services associated with ARIS, the world`s leading business process management software, increased by almost 17% to 26.5 million EUR (previous year: 22.7 million EUR).

Growth in the IDS Scheer International segment outpaced projections with revenue increasing by nearly 15% to 37.1 million EUR (previous year: 32.2 million EUR). Operating profit of the subsidiaries outside Germany tripled from 0.7 million EUR in the first half of 2002 to 2.3 million EUR.

The product area reported strong growth, in no small part due to a high demand outside Germany. The number of ARIS licences worldwide grew by 21% to more than 40 600 (previous year: 33 300). Revenue from products and product-related services in conjunction with the ARIS platform increased by almost 17% to 26.5 million EUR (previous year: 22.7 million EUR) as profitability also increased. The operating profit grew by 134% to 5.2 million EUR reaching an EBIT margin of 19.6% (previous year 9.8%). Demand for ARIS PPM (Process Performance Manager), a software tool for measuring process efficiency, has particularly increased.

Product clients include companies such as Gruner + Jahr (media, Germany), Argo (IT services, Japan), MOL Hungarian Oil and Gas (utilities, Hungary), Amadeus (IT services, France), Merrill Lynch (financial services, USA) and AT&T (telecommunications, USA).

IDS Scheer`s consistent focus on productivity led to increased profits in all segments. The operating profit of IDS Scheer AG grew to above planned levels with a growth rate of 63% and results of 13.3 million EUR (previous year: 8.2 million EUR). This increase represents an EBIT margin of 14.5% (previous year: 9.4%)

Thanks to the positive results development of the international subsidiaries and the positive financial result, net profit for the first half of the year more than doubled to 8.5 million EUR (previous year: 4.1 million EUR). Earnings per share increased correspondingly to 0.268 EUR (previous year: 0.128 EUR). Want to learn more about ARIS and the solutions it offer?

Register and attend the ARIS ProcessDay on the 2 and 4 September 2003. http://www.cpi.co.za