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ICT SHARP INCREASE IN PROFITABILITY IN FIRST HALF

08/30/2010

Key developments in first half 2010

• Turnover up by 14.4% to € 45.1 million in first half
• Operating result almost five times higher at € 2.5 million (H1 2009: € 0.5 million)
• Operating margin in first half of 2010 comes in at 5.5% (H1 2009: 1.3%)
• Net profit € 2.8 million, including a book profit of € 980,000
(H1 2009: loss of € 2.9 million, including a provision of € 4.5 million)
• Outlook 2010: turnover will be lower in the second half of 2010 than in the first half of 2010. Profitability in the second half of the year will show an improvement compared with the year earlier period, thanks to the measures taken in 2009 and the improved market conditions.

¹)             On the basis of the average number of outstanding ordinary shares.

Bram Schot, CEO of ICT Aut omatisering N.V .:

"The slight pick-up in the market, which started halfway through March of this year, continued in the second quarter. This enabled ICT in the first half of this year to take full advantage of the measures taken in 2009. The turnover and the operating result booked in the first half therefore showed a strong increase compared with the same period in the previous year. Although we do expect a slight improvement in the market in the second half of this year, the extent of this recovery depends on the willingness of individual clients to invest. We expect ICT to book lower turnover in the second half of 2010 than in the first half of the year, due to staff developments in Germany and the normal seasonal pattern. With regards to profitability, however, we again expect a positive development for the second half of the year."

Notes to results

Turnover in the first half rose by 14.4% to € 45.1 million (H1 2009: € 39.4 million). The organic turnover increase amounted to 8.6%.

Turnover at ICT the Netherlands rose by 9.0% to € 32.2 million (H1 2009: € 29.5 million). The merger of Embedded and Solutions to form HUMIQ enabled ICT to respond more effectively to the needs of the market. In the first half of the year, this translated into organic turnover growth of 6.2%. Turnover at ICT Germany came in at € 12.9 million. This was a rise of 30.5% compared with the first half of 2009 (H1 2009: € 9.9 million). Organic turnover came in at 15.5%. The fees in the Netherlands and Germany remained the same in the first half of this year as they were at the end of 2009.

The cost of material use and work subcontracted rose by 24.2% to € 4.5 million (H1 2009: € 3.6 million). Personnel expenses rose by 12.5% to € 29.2 million (H1 2009: 26.0 million). This rise is due to the fact that in the second quarter of 2009 a considerable number of employees in Germany were still in the Part-Time Unemployment Benefit scheme and because Improve Quality Services was fully consolidated in 2010 (was 50%). Furthermore, ICT acquired the infotainment activities of Harman Becker in November 2009. The other operating expenses fell by 4.5% to € 8.5 million.

The operating result came in at € 2.5 million, compared with € 0.5 million in the first half of 2009. The rise in the operating result was due to increasing demand and a higher capacity utilisation. In addition, the operating result was higher due to the improved cost base following the reorganisation carried out last year.

Taxes for the first half of this year amounted to € 657,000. This is equivalent to an effective tax burden of 19.0%. The low tax burden was due to the untaxed book profit on Improve Quality Services.

Net profit for the first half of 2010 amounted to € 2.8 million. This included a book profit of € 980,000 as a result of the revaluation of the 50% stake in Improve Quality Services in connection with the increase of ICT's stak e in the company to 75%. The net result for the first half of 2009 cam e in at a loss of € 2.9 million and included a reorganisation provision of € 4.5 million.

Personnel

At end-June 2010 the number of employees (head count) stood at 933, compared with 934 employees at end-December 2009 and 976 as per end-June 2009. The average number of employees (FTEs) over the first half of 2010 was 907, compared with 978 over the first half of 2009 and 903 in the second half of 2009.

Developments per division

ICT the Netherlands

In the first half of the year we successfully combined ICT's Dutch activities in HUMIQ. The focus at the moment is on further optimisation of ICT the Netherlands. The various markets developed differently over the past six months. ICT saw reasonable levels of demand in Embedded, while the industry-related markets still showed considerable reluctance to invest.
Turnover in the first half of the y ear ro se 9.0% t o € 32.2 million (H1 2009: € 29.5 million). Organic turnover growth was 6.2%. The increase was largely the result of slightly improved market conditions and the combination of Embedded and Solutions in HUMIQ, which meant greater commercial effectiveness.
Fees in the Netherlands remained unchanged in the first half, when compared to the latter part of 2009. In the second half of the year, ICT expects fees to remain unchanged, while we expect fees to rise again from 2011.

ICT Germany

In the first half, a large number of employees in Germany ended their contract of employment, which means there was a considerable outflow of employees in the second half of the year. This development is the result of a crisis of confidence between the German senior managers themselves and between parts of the German organisation and the German senior management. To prevent the situation from escalating, a new management team has been appointed in the second quarter and this has prevented further damage to the German activities. We expect the overall number of staff in Germany to be around 50 employees lower in the second half of the year. In the context of these developments, extra costs of around € 0.4 million were incurred in the first half.

As a result of the appointment of the new management, the situation in Germany has been normalised now. ICT does not expect an extra outflow of personnel beyond normal turnover levels and will once again focus fully on growth and hiring new staff. We expect Germany to once again make a healthy contribution to the development of turnover and the result of ICT from 2011.

The automotive market recovered well in the first half of the year. This was particularly true for car manufacturers. However, suppliers are still struggling, under pressure from car manufacturers. Turnover at ICT Germany was € 12.9 million, up 30.5% compared with the first half of 2009 (H1 2009: € 9.9 million). Organic growth was 15.5%. The fees in Germany in the first half of 2010 were unchanged from the levels of late 2009. Fees might rise again from 2011.

Strategy

In view of the economic developments over the past two years and the material impact on the strategies and objectives set out in 2008, ICT is currently sharpening its strategy. The outcome of this will be announced during an extraordinary meeting of shareholders at the end of 2010.

The combination of the Dutch activities of Embedded and Solutions in HUMIQ was completed successfully in the first half of the year and is beginning to bear fruit. ICT will focus on further optimisation of the organisation in the second half of the year.

ICT will a lso introduce greater focus in the organisation by focusing on a smaller number of technologies. Investments in know-how will be targeted, in Microsoft technology for example. This investment has already resulted in a number of interesting projects and opportunities.

Outlook

Due to seasonal patterns and th e exit of employees in Germany, ICT expects turnover in the second ha lf of the year to be lower than in the first half.

The profitability in the second half year w ill show an improvement compared with the previous y ear, due to the measures introduced in 2009 and the improved market conditions

Attachments:

- Condensed consolidated profit and loss account for the first half of 2010
- Condensed statement of realised and unrealised results
- Condensed consolidated balance-sheet as per 30 June 2010
- Condensed consolidated statement of changes in equity
- Condensed consolidated cash-flow overview for the first half of 2010
Explanatory notes consolidated interim financial statements

Attachments.pdf