euro adhoc: JoWooD Productions Software AG / JoWooD Final Group result 2003 (E)

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Press Release ------------ Rottenmann, 25. Februar 2004

JoWooD confirms preliminary result for 2003

  • Annual revenue amounts to EUR 23 million
  • Group result increased to over EUR 3.7 million
  • Restructuring successfully completed

2003’s solid group result confirms the successful completion of the turnaround of JoWooD Productions Software AG, a company quoted on the Vienna Stock Exchange. EBIT reached EUR 7 million (2002: EUR -42.8 million). The group result after minorities increased to EUR 3.7 million (2002: EUR -28.6 million).

The decrease in preliminary sales from EUR 43.5 million in 2002 to EUR 23 million in 2003 is in line with the company’s new business model. The percentage of foreign sales has risen significantly in comparison to previous years. In 2002 the percentages of foreign sales and foreign sales excluding German speaking countries amounted to 55 percent and 27 percent, respectively. In 2003 these percentages increased to 74 percent and 40 percent, respectively. A further internationalization of JoWooD’s business is on the agenda for 2004.
The balance sheet total of JoWooD Group was reduced to approx EUR 48 million in 2003. This corresponds to a reduction of approx. EUR 4 million compared to the previous year. The balance sheet’s active side holds a cash position exceeding EUR 10 million (2002: EUR 1 million). The equity ratio is approx. 67 percent (2002: approx. 11 percent). A second bank agreement led to a reduction of the company’s debt to approx. EUR 9 million (2002: approx. EUR 19 million) -approx. EUR 8 million thereof being long term debt. Short term liabilities were reduced from EUR 34.3 million in 2002 to EUR 7.7 million. Long term liabilities are down at EUR 8.2 million from EUR 12.3 million in the previous year. The corresponding total reduction of liabilities amounts to approx. EUR 31 million.
In contrast to the preliminary result, the deconsolidation of Dynamic Systems Group, a distribution company of JoWooD, is accounted for in 2003’s final balance sheet. This transaction, which was originally scheduled to take place in 2004, consisted of a swap of minorities for equity. Equity after minority interest remains unaffected. JoWooD plans to release approx. 8 new titles in 2004. JoWooD’s strategy is to focus on titles with a high sales potential and console titles. Approximately 30 percent of 2004’s releases will be targeted at the fast expanding console market. The schedule includes another derivative of the highly successful Gothic series as well as Add-ons for the titles SpellForce, Soldner and Wildlife Park. The portfolio will also include a new sequel to the top-selling Giant series and console versions of Aquanox and Neighbours from Hell (incl.a sequel). Some further titles will be Pillage, Gorky Zero and a title based on a motion picture IP.

JoWooD boasts an impressive line-up for 2005. Among 2005’s key titles will be Soldner II, SpellForce II, The Guild II, Star Gate SG1, another Giant title and a new sequel to the Gothic series.
Against the background of on-going industry globalization, JoWooD is actively considering a number of options for improving its distribution power in order to utilize tap the full market potential of its attractive title portfolio. A decision is due for the first half of 2004.

"2002 was a crisis year, 2003 was a year of restructuring, 2004 will be the year of JoWooD’s strategic repositioning. We have a great product-pipeline, a flexible cost structure and a good balance sheet structure and must now take the strategic decisions for the coming years. These decisions will be targeted at improving JoWooD’s distribution concept and will reflect the interests of all stake holders. We are presently evaluating a full array of options with no preference for a certain strategic concept", said JoWooD’s executive board members, Andreas Tobler and Michael Pistauer.

Further information:
Dr. Michael Pistauer
E-mail: investor@jowood.com
Tel: +43 3614-2966-1021
Fax: +43 3614-2966-1023
www.jowood.com

Result of JoWooD Group 2003 *

Balance sheet as of 31.12.2003
all values in EUR 000 31.12.2003 31.12.2002

Assets Intangible assets 1,584 4,537 Goodwill 687 840 Tangible fixed assets 620 1,364 Financial assets 1 18 Deferred Tax Assets 12,365 13,558 Total non-current assets 15,257 20,318 Inventory merchandise 751 4,639 Inventory finished products 6,725 1,397 Inventory unfinished products 7,209 7,082 Accounts receivable from trade 5,836 11,952 Accounts receivable other 1,989 5,255 Cash on hand and in banks 10,298 1,444 Prepaided expenses and deferred charges 118 354 Total current assets 32,927 32,122 Total assets 48,184 52,440 Shareholders'Equity and Liabilities Share Capital 25,652 10,714 Additional paid-in capital 35,853 28,083 Res.f.retained earnings and group result -29,266 -24,855 Total shareholders' equity 32,239 13,942 Minority interests 4 -8,115 Longterm debts to banks 7,826 10,068 Provision for termination payment 242 460 Deferred taxes 0 15 Long term payables others 128 1,764 Total longterm accounts payable 8,196 12,307 Short-term debts to banks 1,472 8,927 Accounts payable from trade 2,006 8,228 Accruals for taxes and other accruals 2,338 13,127 Advanced payments 1,213 118 Other liabilities and deffered income 716 3,906 Total short term accounts payable 7,746 34,305 Total shareholders' Equity and liablities 48,184 52,440 JoWooD Group Profit and Loss account all values in EUR 000 Jan-Dec 03 Jan-Dec 02

Sales 22,822 43,473 Costs of goods sold -3,225 -20,268 Development costs -10,013 -17,620 Gross profit 9,584 5,585 Distribution expenses -4,048 -14,140 Administrative expenses -1,766 -6,281 Other operating income 814 1,079 Other operating expenses -814 -774 Operating result before restructuring measures 3,770 -14,532 Restructuring result 3,165 -28,275 Operating result after restructuring measures 6,935 -42,806 Financial result -1,316 -1,573 Result from ordinary operations 5,619 -44,380 Taxes on income -1,910 11,064 Net income before minorities 3,709 -33,316 Minority interests 3 4,730 Net income after minorities 3,711 -28,585

JoWooD Group
Profit and Loss account
all values in EUR 000 Oct-Dec 03 Oct-Dec 02

Sales 5,546 13,296 Costs of goods sold -991 -513 Development costs -4,895 -11,246 Gross profit -341 1,537 Distribution expenses -464 -3,233 Administrative expenses -73 -1,828 Other operating income -226 295 Other operating expenses -14 -820 Operating result before restructuring measures -1,118 -4,049 Restructuring result 6,739 4,144 Operating result after restructuring measures 5,622 95 Financial result -957 -410 Result from ordinary operations 4,664 -315 Taxes on income -1,227 1,675 Net income before minorities 3,437 1,360 Minority interests 9 452 Net income after minorities 3,446 1,812 Employees as per 31.12.2003 156 281 * final audited result before approval

Further inquiry note:
JoWooD Productions Software AG
Dr. Michael Pistauer, Vorstand.
Karin Kraberger, Investor Relations
Tel.: +43 (0)3614 2966 1015
mailo:investor@jowood.com
http://www.jowood.com
Tel: 0043 3614 2966-1015
FAX: 0043 3614 2966-1023
Email: investor@jowood.com

end of announcement euro adhoc

Emittent: JoWooD Productions Software AG
Bahnhofstrasse 22
AT-4802 Ebensee
Tel: 0043 3614 2966-1015
FAX: 0043 3614 2966-1023
Email: investor@jowood.com
WWW: http://www.jowood.com
ISIN: AT0000747357
WKN: 074735
Indizes: ATX Prime, ViDX, WBI
Börsen: official dealing Wiener Börse AG; free trade Berliner Wertpapierbörse, Bayerische Börse, Baden-Württembergische Wertpapierbörse, Frankfurter Wertpapierbörse
Branche: Software
Sprache: Englisch

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