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proALPHA Software Corporation

20 Trafalgar Square

Suite 403

Nashua, NH 03063

Tel. 001 603-881-3635

Fax 001 603-886-4350

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proALPHA - Programmed for Growth

The Software Company Based in Weilerbach Continues Winning Streak in Fiscal Year 2012/2013

Sep 17, 2013

During the annual shareholder’s meeting on September 17, 2013 proALPHA Software AG presented the results of the past fiscal year. The internationally present specialist for business software (Enterprise Resource Planning) focusing on medium-sized industrial, trade and service businesses could continue its positive development in spite of permanently unstable markets and little economic growth in Germany. The revenue increased by 8% to 58.8 million euros (previous year: 54.5 million euros). The group also experienced significant growth in profit. It increased from 6.8 million euros in the previous year to 7.8 million euros in the fiscal year 2012/2013. This means that the proALPHA group succeeded in continuing its success story for the 18th year in a row.

In the field of software revenues and revenues for software-related services a result of 37.8 million euros was achieved. This corresponds to an increase of 7.6 % compared to the previous year. In the field of services including consulting and project-related development as well as the portfolio of the proALPHA Academy, turnover increased by 9.9% to 20.6 million euros. Personnel expenses have the greatest share in operative costs and increased by 3.2 million euros to 33.4 million euros. In 2012/2013, the group again invested large sums in human resources in order to attract new, well-trained employees on the one hand, and to retain the existing workforce on the other hand. With 10.8 million euros, company earnings are at the previous year's level. The EBIT margin is 18.4%. This preserved the high profitability in spite of company growth and disproportionately high investments in human resources.

At the end of the fiscal year and right in time for the CeBIT 2013, the new proALPHA version was released, representing the most extensive release in the history of the group. Based on the feedback and suggestions of the users, more than 200 requests and functional extensions have been implemented in proALPHA. Areas of operation such as the Integration Workbench or the core of materials management have been entirely revised or are completely new. "Our customers are especially impressed by the innovative User Experience concept that sets new standards in terms of usability and user guidance in ERP systems," Werner Ernst, CEO of proALPHA Software AG, states.

As a provider of business software, the proALPHA group has set itself the target to increase the competitiveness of its customers by providing excellent software and corresponding services. In order to reach this target, visionary scientific knowledge and research results of the technology partners have to be transferred into commercial applications. For this reason, the software company cooperates with numerous scientific institutions and is involved in various research projects like the Software-Cluster or the SmartFactory-KL in order to have an edge over the competition when it comes to topics such as Industry 4.0.

During the last fiscal year, the proALPHA group has again taken a number of measures to face the challenges of the increasing globalization. In order to provide the customers in almost 50 countries with an optimum support, the ERP provider features 27 subsidiaries and partner companies all over the world. One of these very successful units is proALPHA Polska Sp. z o.o., which has been founded in Western Poland already in 2005. It emerged from the cooperation with the Division of Controlling and Computer Applications in Economics at the University of Zielona Góra as a symbiosis of research and tearching. At the beginning of the last fiscal year, proALPHA Software AG has increased its interests in proALPHA Polska Sp. z o.o. from 33.3 % to 52.7 % and now holds the majority of shares.

Altogether, the proALPHA board of management is expecting a very good development with a growing sales pattern in the near feature, despite the recessive economic situation. Retaining a sustainable profitability is one of the most most important business objectives in this context. Jürgen Brand, CFO: "We experience a strong demand for the latest proALPHA version 6.1 and the corresponding range of services. With the focus laid on medium-sized companies and an innovative, technologically advanced service portfolio, we will be able to significantly extend our customer base."

The proALPHA Group at a Glance

Turnover (in million euros)58.854.550.7
EBIT (in million euros)10.810.88.4
Cash flow (in million euros)
Investments (in million euros)
Total assets (in million euros)58.559.952.1
Equity ratio60.1 %50.4 %48.4 %
Employees Ø528479464

Note: proALPHA Software AG has a deviating financial year ending on March 31.

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