vwd sharply increases EBITDA in 2011 - further gains planned in 2012

vwd sharply increases EBITDA in 2011 - further gains planned in 2012

- Operating cash flow climbs steeply once again
- Net financial liabilities reduced further
- European expansion of business continued
- Remeasurement of EDG put option results in a loss

Frankfurt/Main, April 30, 2012 - vwd Vereinigte Wirtschaftsdienste AG (regulated market, General Standard, ISIN DE0005204705) announces the Group's financial results for fiscal year 2011.

Despite the renewed escalation of the financial crisis, the vwd group expanded its operating business and boosted its sales and operating earnings in fiscal year 2011. Sales climbed by 6.3 % to EUR 80,885.7 thousand during the year under review (previous year: EUR 76,123.6 thousand). At the same time, earnings before interest, taxes, depreciation and amortization (EBITDA) shot up 16.8 % to EUR 8,703.9 thousand (previous year: EUR 7,454.6 TEUR), far outpacing the growth in sales. A key reason for this performance was the group's new business operation in Italy, which the vwd group initiated in a partnership with Il Sole 24 Ore S.p.A., the publisher of the leading Italian business and financial newspaper 'Il Sole 24 Ore.' By entering into this partnership last year, the vwd group took another successful step in its Europeanization strategy.

A key driver of the vwd group's operating earnings was the segment Market Data Solutions (MDS). Its sales of market-data systems, browser-based applications and portfolio-management solutions jumped by 12.2 % to EUR 39,726.9 thousand (previous year: EUR 35,410.2 thousand). The strong increase was fueled by the new business operation in Italy. In addition, the vwd document manager, a solution to create the financial-product information leaflets now required by law, was prepared for market introduction and the first contracts were concluded. The segment's EBITDA climbed by 23.1 % to EUR 4,707.0 thousand (previous year: EUR 3,824.1 thousand).

With new technological solutions for the investment-advisory process and Internet-based services for the financial industry, the segment Technology Solutions (TS) increased sales by 7.8 % to EUR 19,951.3 thousand (previous year: EUR 18,514.9 thousand). Despite higher material costs and personnel expenses, EBITDA remained virtually unchanged at EUR 2,207.8 thousand (previous year: EUR 2,211.5 thousand).

In the segment Specialised Market Solutions (SMS), sales fell by 4.5 % to EUR 21,207.5 thousand (previous year: EUR 22,198.5 thousand) due to declining business in the listing-services area. But strong demand for ratings of certificates and value-at-risk assessments for financial instruments fueled an increase of 26.0 % in EBITDA to EUR 1,789.2 thousand (previous year: EUR 1,420.0 thousand).

EBIT at the vwd group climbed by 16.5 % to EUR 3,656.9 thousand (previous year: EUR 3,138.1 thousand). Depreciation, amortization and impairment of tangible and intangible assets totaling EUR 5,047.0 thousand (previous year: EUR 4,316.5 thousand) is considered in this figure. The EBIT margin rose by 4.5 % (previous year: 4.1 %). The financial result totaled EUR -5,096.6 thousand (previous year: EUR -1,217.0 thousand). The main cause of this change was a put-option agreement to acquire 49 % of the shares in the EDG business group. This agreement was remeasured on the basis of a reasonable commercial assessment as a result of the announced results for fiscal year 2011. Due to the remeasurement, the vwd group reported a consolidated loss of EUR -2,289.0 thousand (previous year: profit of EUR 1,203.5 thousand) after taxes and before minority interests.

Driven by measurably improved business, operating cash flow climbed to EUR 13,024.9 thousand in 2011 (previous year: EUR 7,264.5 thousand). As a result, the vwd group was able to cover a major portion of its financing needs on its own. Long-term loans were systematically reduced. At the same time, cash and cash equivalents rose sharply. In another reflection of the vwd group's financial strength, net financial liabilities fell to EUR 651.1 thousand (previous year: EUR 7,874.7 thousand).

Key financial figures

Organic growth to be pursued in 2012
The vwd group has held its own during the financial crisis of recent years. 'We believe that we have reached the bottom and will produce stronger organic growth over the mid-term,' the Management Board writes in its outlook for 2012. 'But the company's future business performance will depend heavily on the direction taken by international financial markets. Faced with numerous regulatory and economic changes, our customers will be forced to review their business models and optimize their business processes. Should our customers become increasingly interested once again in making investments, this will have a very positive effect on our business. In general, we initially expect moderate growth.'

Against this backdrop, consolidated sales are expected to rise between EUR 87.0 million and EUR 96.0 million. EBITDA should total between EUR 9.6 million and EUR 10.5 million.

Forward-looking statements/Disclaimer
This press release contains forward-looking statements that reflect the present views, expectations and assumptions of the vwd group and are based on information available to the company at the time this press release was prepared. Forward-looking statements are no guarantee that future events and developments will actually occur. Rather, they are associated with risks and uncertainties. Future performance by and developments at the vwd group could differ materially from the expectations and assumptions provided here as a result of many factors. In particular, these factors include changes in economic conditions, new legal parameters, competition and trends in financial markets.

We would like to point out that the consolidated financial statements and the group management report of vwd Vereinigte Wirtschaftsdienste AG for fiscal year 2011 have received a qualified auditor's report. Additional information about this subject is contained in the Annual Report.

The Annual Report for 2011 is now available for download from vwd's home page at http://www.vwd.com/vwd/investor_relations.htm.

Further information:
Investor relations
Carsten Scharf
Telephone: +49 69 50701-270
Fax: +49 69 50701-114
E-mail: investorrelations@vwd.com

vwd Vereinigte Wirtschaftsdienste AG
Tilsiter Straße 1
60487 Frankfurt am Main
www.vwd.com

About vwd group:
vwd group offers customised information, communications and technology solutions for the financial markets. As a leading European provider, it specialises in meeting individual customer requirements in the areas of asset management, retail banking, private banking and wealth management. It offers innovative solutions for financial service providers, investors and the media. vwd's business is driven by innovation, flexibility, customer centricity and strong commitment to local needs. With around 470 employees at 18 locations in 5 countries vwd is a public company, listed at the Frankfurt Stock Exchange (ISIN DE0005204705). The group's best-known brands are: finanztreff.de, vwd fonds service, vwd market manager, vwd portfolio manager, vwd PortfolioNet, TradeLink and Tai-Pan.