DGAP-Adhoc: SNP Schneider-Neureither & Partner AG withdraws forecast for year

SNP Schneider-Neureither & Partner AG / Key word(s): Half Year Results/Profit
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01.07.2013 13:14

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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SNP Schneider-Neureither & Partner AG withdraws forecast for year
- Sales and earnings performance in first half of year well below
expectations
- Direct and partner sales facing operative challenges
- Measures focusing on set-up of effective sales structure introduced
- Cooperation with SAP resumed to boost consulting business

Heidelberg, 1 July 2013 - After a persistently restrained business
performance in the second quarter of 2013, SNP Schneider-Neureither &
Partner AG is now also forecasting that the sales and earnings increase in
the second half of the year will not be sufficient to achieve its
previously communicated targets for the year. In light of this, the
Executive Board is retracting its sales and earnings forecast of
double-digit sales growth with an EBIT margin of 14-18% for the 2013
financial year. Specific statements on sales and earnings forecasts for the
2013 financial year will be possible again only as the year progresses.
Sales in the second quarter were below the previous year's level. According
to provisional calculations, operating earnings (EBIT) for the second
quarter were negative at more than EUR-1 million.

The reason for the negative sales and earnings development in relation to
software business was the lack of contracts concluded in SNP AG's direct
and partner sales. Despite the positive response among customers and the
strategic positioning of partners in terms of sales and the implementation
of SNP Transformation Backbone, significant licence agreements have not yet
been generated. In particular, this is due to the fact that the operative
implementation of the sales strategy has not yet been concluded as it is
taking significantly more time than originally assumed. The Executive Board
sees the operative penetration of the sales strategies agreed with partners
as a key lever for improving the medium-term earnings situation of SNP and
will intensify its efforts in this area in particular.

The company's own sales operations will focus on long-term licences for
corporations in the Software division, while partner business will centre
its sales efforts around large projects.

As two major projects were completed on schedule at the end of last year
and similarly large projects have been started with delay during the last
weeks of the first half year, capacity utilisation in Professional Services
(consulting business) was down year-on-year. However, the company is
anticipating that also the newly concluded service partnership with SAP
will help to boost the fundamentally stable consulting business as basis
for the medium-term business performance. The Executive Board expects that
the organisational and HR measures implemented with the goal of an
operative improvement in sales will have tangible results in the next six
to nine months.

The consolidated half-year financial report of SNP Schneider-Neureither &
Partner AG will be published on 29 July 2013.

Heidelberg, 1 July 2013

SNP Schneider-Neureither & Partner AG
The Executive Board

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Language: English
Company: SNP Schneider-Neureither & Partner AG
Dossenheimer Landstraße 100
69121 Heidelberg
Germany
Phone: 06221-6425-111
Fax: 06221-6425-20
E-mail: investor.relations@snp-ag.com
Internet: www.snp-ag.com
ISIN: DE0007203705
WKN: 720370
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Hamburg, Stuttgart

End of Announcement DGAP News-Service

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