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Thursday 22 July, 2010

Docdata N.v.

Excellent 2010 Half-year Results for DOCDATA N.V.


    - Revenue Growth of More Than 30%

    - Strong Financial Position is Maintained

    - Both Lines of Business Successful and Growing Harder Than the Market

    DOCDATA N.V. has made a flying start in the first half-year 2010. Both
lines of business, technology company IAI industrial systems and e-commerce
service company Docdata show excellent results.

    Technology company IAI industrial systems was able to deliver all orders
as planned in the first half 2010. In addition, the organisation has expanded
and is prepared for further growth.

    The revenue and number of processed transactions of the e-commerce
service company Docdata increased substantially in the first half 2010. This
is due to the success of our customers in the Netherlands and Germany and the
acquisition of the business activities of the former Dohmen Solutions Group
in Germany.

    Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Despite the current
economic crisis we had to have all hands on deck in the first six month to
realise the growth, resulting in the expansion of our work force with almost
300 employees to a large extent in Germany. This had an extreme impact on our
organisation and resulted in additional costs. The priority however remains
focused on a very high delivery performance for our customers."

<pre>    
                                             Half-year    Half-year
                                                 ended
                                          30 June 2010        ended
 
    Revenue                                            30 June 2009   Growth
    (in thousands, except percentage               EUR          EUR        %
    figures)
 
    Technology company IAI industrial           10,323        4,187   + 147%
    systems
    E-commerce service company Docdata          26,362       22,082    + 19%
    (excluding Docdata media and former
    Dohmen Solutions)
    Docdata media                                5,610        8,627  -/- 35%
    Acquisition former Dohmen Solutions          3,694            -        -
    Total                                       45,989       34,896    + 32%

    Results and Financial position half-year 2009 (unaudited)

                                          Half-year ended at
    (in millions, except percentage        30 June 2010  30 June 2009
    figures and per share data)
 
                                             EUR       %     EUR     %
 
    Revenue
    E-commerce service company Docdata      35.7    77.6    30.7  88.0
    Technology company IAI industrial       10.3    22.4     4.2  12.0
    systems
    Total                                   46.0   100.0    34.9 100.0
 
    Gross profit
    E-commerce service company Docdata       8.6    24.0     8.9  28.8
    Technology company IAI industrial        4.1    40.0     1.9  45.5
    systems
    Total                                   12.7    27.6    10.8  30.8
 
    Operating profit (EBIT)
    E-commerce service company Docdata       0.4     1.0     1.5   4.9
    Technology company IAI industrial        2.8    27.2     0.9  21.0
    systems
    Total                                    3.2     6.9     2.4   6.8
 
    Profit for the half-year                 2.6     5.6     1.9   5.4
 
    Basic earnings per share                0.38            0.28
    Diluted earnings per share              0.37            0.27
 
    Balance sheet total                     50.2            39.1
    Equity                                  26.6            21.7
    Solvency ratio (Equity / Balance       53.0%           55.6%
    sheet total)
</pre>    Technology company IAI industrial systems delivered many 
personalisation
systems in the first half-year 2010. As a result the revenue of IAI
industrial systems increased with EUR 6.1 million (+147%). The operating
result for the first half-year 2010 is exceptionally high due to several
specific orders. Per end of June 2010 the order book included orders for a
revenue of EUR 8.6 million which will be delivered for a large part in 2010
(end 2009: EUR 13.8 million). The pipeline is well filled and the company is
working hard to convert this pipeline into orders.

    In the document security market IAI industrial systems is seen as the
highest quality supplier of production systems to personalise and/or secure
documents issued by governments. IAI has expanded the product range
considerably in the document security market through the development of new
systems in the past years.

    In the Solar market IAI offers systems for the production of solar cells
or solar panels. In 2010 IAI delivered several 'lab'-systems and further
increased its reputation in the market. To realise unique applications in
solar cells, IAI has invested in an excimer laser which will be used for
application oriented research. This laser will also be used for application
development in other markets. Due to the current economic crisis we expect to
deliver production systems not before 2011.

    Michiel Alting von Geusau, CEO of DOCDATA N.V.: "We remain ideally
positioned in the document security market because of our high quality,
reliable and customised systems. This also gives us the possibility to
compete with the major players in the market. We expect that governments
world-wide will continue to give a high priority to investments in document
security. We will continue to invest in new applications and systems."

    E-commerce service company Docdata again achieved a strong increase in
the number of unique transactions compared to 2009. In the first half 2010
nearly 13 million unique transactions have been processed. The strong revenue
growth was mainly achieved by the success of existing clients and the
acquisition of the business activities of the former Dohmen Solutions Group.
As these activities have been acquired for a relatively small amount from
Dohmen Solutions which was in suspension, this does result in restructuring
costs fully charged to the operating result of Docdata. As a result of the
acquisition one-off costs of EUR 1.3 million have been recognised in the
first half-year 2010. For the second half-year 2010 we expect to incur a
comparable amount of costs. These substantial one-off costs in combination
with the relatively low acquisition price, make it an interesting deal
compared to the acquired customer base.

    Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Thanks to the
acquisition of the activities of Dohmen Solutions we have further
strengthened our position in Germany and have taken a top 10 position in the
e-commerce service market. Through five sites spread across Germany we can
now provide our customers a full e-commerce service."

    Major features of the first half-year 2010

    The revenue of DOCDATA N.V. increased with EUR 11.1 million to EUR 46.0
million (+32%) in the first half-year 2010. IAI industrial systems has
realised an increase in revenue of EUR 6.1 million (+147%). Docdata has
realised with the commerce, payments and fulfilment services an autonomous
revenue increase of EUR 4.3 million (+19%), predominantly due to the
increased number of transactions of more than 27% compared to last year. The
acquisition of the activities of the former Dohmen Solutions Group
contributed to revenue for EUR 3.7 million in the first half-year 2010 as
from 16 April 2010. Finally, Docdata media incurred a decrease in revenue of
EUR 3.0 million (-/- 35%) due to the further decline of replication
activities.

    In the first half-year 2010 a higher gross profit of EUR 12.7 million has
been realised compared to the EUR 10.8 million in the first half-year 2009
(+18%). The gross profit margin for the first half-year 2010 is 27.6%
compared to 30.8% in the first half-year 2009, with a decrease of the gross
profit margin for both lines of business. For Docdata this lower gross profit
margin is mainly the result of lower realised efficiency due to the
tremendous growth of some or our largest customers in the Netherlands and
Germany. For IAI industrial systems the decrease of the gross profit margin
is due to different size and composition of deliveries in both comparable
periods, taking into account that in the first half-year 2009 almost no
deliveries were realised.

    In the first half-year 2010 an operating result before financing result
(EBIT) of EUR 3.2 million has been realised compared to EUR 2.4 million in
the first half-year 2009.

    The operating result of the technology company IAI industrial systems
increased with EUR 1.9 million as a result of the delivery of more systems in
the first half-year 2010.

    The operating result of the e-commerce service company Docdata decreased
with EUR 1.1 million due to several one-off effects:

<pre>    
    - acquisition- and consultancy costs, start-up losses and restructuring
      costs after acquisition of the business activities of the former Dohmen
      Solutions Group (impact: approximately EUR 1.3 million);

    - significant higher organisation costs to realise the strong growth of
      some large customers in the Netherlands and Germany.
</pre>    As a result of the improved operating result of both lines of 
business
together, the profit for the first half-year 2010 amounts to EUR 2.6 million
which is EUR 0.7 million (+36%) higher compared to the first half-year 2009.

    DOCDATA N.V. has maintained its strong financial position during the
first half-year 2010 with a solvency ratio of 53.0% per 30 June 2010 (31
December 2009: 55.9%). In relation to the Company's liquidity, the cash
surplus position of EUR 6.1 million at 31 December 2009 has decreased with
EUR 2.8 million to EUR 3.3 million at 30 June 2010. DOCDATA N.V. has realised
in the first half-year 2010 a cash flow from operating activities of EUR 5.4
million (first half-year 2009: EUR 0.2 million), which is influenced to a
large extent by cash flows generated from the delivery in February 2010 of
the second part of the Bulgarian order by IAI industrial systems B.V. and the
receipt of an income tax receivable by the Dutch fiscal entity. Furthermore,
DOCDATA N.V. has drawn EUR 4.4 million from the existing credit facility with
Dresdner Bank AG (now part of Commerzbank AG) to finance the following:

<pre>    
    - the acquisition of the assets and business activities of the former
      Dohmen Solutions Group in Germany (purchase price: EUR 2.0 million);

    - the working capital of the new legal entities in Germany, which
      acquired the assets and business activities of the former Dohmen
      Solutions Group (including the restructuring costs after acquisition of
      these activities);

    - the investments in the warehousing (among others installations and
      racking) of our fulfilment centers in the Netherlands and Germany.
</pre>    Of these total available funds of EUR 9.8 million, EUR 3.7 million 
was
spent on the payment of the 2009 dividend. In addition, the Group has
invested a total amount of EUR 4.5 million in the half-year ended 2010: EUR
3.2 million in property, plant and equipment (mainly warehousing equipment
and investments in IT infrastructure) and EUR 1.3 million in intangibles
(predominantly IT platform and customer contracts from the former Dohmen
Solutions Group). The remaining EUR 1.6 million has resulted in higher cash
and cash equivalents per 30 June 2010.

    Outlook

    As already announced in February 2010, the focus of DOCDATA N.V. for 2010
is on growth, both autonomous and through acquisitions. The first half-year
2010 has proven that both lines of business of the Company in terms of
achieving autonomous growth are fully on track. With the acquisition of the
assets and business activities of the former Dohmen Solutions Group in
Germany the target to achieve a top 10 position in Germany has already been
realised. For the second half-year 2010 the focus will be on realisation of
further autonomous profitable growth and process optimisation.

    In the market for document security, technology company IAI industrial
systems has realised outstanding results in the first half-year 2010. The
focus for the second half-year 2010 will be on further development of new
systems for the various markets in which IAI operates and on bringing in new
orders for 2011. In the Solar market we do not expect substantial revenue for
IAI industrial systems in the second half-year 2010. IAI industrial systems'
order book amounts to EUR 8.6 million at 30 June 2010 and will be delivered
mainly in 2010.

    The management of DOCDATA N.V. expects that the operating result for the
full-year 2010 will be lower than that for the full-year 2009, due to one-off
costs related to the acquisition of the business activities of the former
Dohmen Solutions Group.

    Accounting policies

    The consolidated financial statements of DOCDATA N.V. are prepared in
accordance with the International Financial Reporting Standards as adopted by
the European Union (hereafter IFRS). For an overview of the significant
accounting policies under IFRS, please refer to the 2009 Annual Report that
is available at the Company and can also be downloaded from the Company's
corporate website, http://www.docdatanv.com. The interim financial report has 
been prepared in accordance with IAS 34 ('Interim Financial Reporting').

    Audit

    The financial information included in this interim report and its
enclosures have not been audited by the external auditors.

    Enclosure with financial information

    For a detailed review of the 2010 half-year results please refer to the
attached enclosure 'Interim Financial Information for the half-year ended 30
June 2010' with Appendix.

    Meeting for financial press and analysts

    Today, Thursday 22 July 2010, management of DOCDATA N.V. will discuss the
2010 half-year results in a meeting for which both financial press and
analysts have been invited, to be held at 10.30AM Amsterdam time in the
Mercurius room of the Financieel Nieuwscentrum Beursplein 5 of NYSE Euronext
Amsterdam (Beursplein 5, 1012 JW Amsterdam, telephone +31-20-5505505).

                   ------------------------------------------

    The listed DOCDATA N.V. exists of two lines of business:

    Technology company IAI industrial systems 
(http://www.iai-industrial-systems.com) is a high tech engineering company 
specialised in developing and building systems for very accurate and high 
speed processing of all kinds of products and materials. IAI delivers 
clients globally in the following sectors:

<pre>    
    - securing and personalising of security documents
    - processing of solar cells and modules
    - processing of other materials and products
</pre>    E-commerce service company Docdata (http://www.docdata.com) is a 
European 
market leader with a strong basis in The Netherlands, Germany and the United
Kingdom, and exists of four services:

<pre>    
    - Docdata commerce
    - Docdata payments
    - Docdata fulfilment
    - Docdata media
</pre>    Responsibility Statement

    Statement pursuant to article 5:25d section 2 sub c of the Dutch
Financial Supervision Act ("Wet financieel toezicht", Wft)

    The DOCDATA N.V. Management Board declares, that to the best of their
knowledge:

    1. the interim financial statements of DOCDATA N.V., as set out on pages
8 to 18 of this report, give a true and fair view of the assets, the
liabilities and the financial position as at 30 June 2010 and the profit for
the half-year ended 30 June 2010 of DOCDATA N.V. and its consolidated
subsidiaries;

    2. the interim report of DOCDATA N.V., as set out on pages 1 to 6 of this
report, includes a true and fair review of the position as per 30 June 2009
and of the development and performance during the half-year ended 30 June
2009 of DOCDATA N.V. and the associated companies, of which the information
is included in the interim financial statements. In addition, the interim
report gives a true and fair review of the expected developments, investments
and circumstances of which the development of revenue and profitability
depend.

<pre>    
    Waalwijk, 22 July 2010

    The Management Board,
    M.F.P.M. Alting von Geusau, CEO
    M.E.T. Verstraeten, CFO
</pre>    Interim Financial Information

    The interim financial information is prepared in accordance with
International Financial Reporting Standards as adopted by the European Union
(hereafter "IFRS") and its interpretations adopted by the International
Accounting Standards Board (IASB).

    Revenue

<pre>    
    (in thousands, except percentage        Half-year ended  Half-year ended
    figures)
                                              30 June 2010     30 June 2009
 
    Revenue by line of business                   EUR      %       EUR      %
 
    E-commerce service company Docdata         35,666   77.6    30,709   88.0
    Technology company IAI industrial          10,323   22.4     4,187   12.0
    systems
    Total                                      45,989  100.0    34,896  100.0

    - Total revenue of the Docdata commerce, payments and fulfilment services
      increased with EUR 8.0 million (36.1%), including a positive foreign
      exchange effect of EUR 0.2 million. This revenue increased as a result
      of autonomous growth (EUR 4.1 million, including the positive exchange
      effect of EUR 0.2 million) and the acquisition of the activities of the
      former Dohmen Solutions Group in Germany (EUR 3.7 million). These
      acquired activities contribute to revenue as from 16 April 2010. The
      revenue of the Docdata media service decreased further with EUR 3.0
      million (35%) due to declining revenue from replication activities in
      Tilburg and Berlin.

    - IAI industrial systems' revenue increased EUR 6.1 million (146.5%) in
      the half-year ended 30 June 2010 compared to the half-year ended 30
      June 2009. This increase in revenue is mainly the result of the
      systems' delivery of the second and last part of the Bulgarian order
      consisting of decentralised personalisation systems.

    Gross profit

    (in thousands, except percentage        Half-year ended 30    Half-year
    figures)                                     June 2010          ended
 
                                                                30 June 2009
    Gross profit (margin) by line of
    business
    (margin as % of revenue by line of
    business)                                     EUR        %     EUR      %
 
    E-commerce service company Docdata          8,563     24.0   8,854   28.8
    Technology company IAI industrial           4,126     40.0   1,903   45.5
    systems
    Total                                      12,689     27.6  10,757   30.8

    - The gross profit of Docdata decreased with EUR 0.3 million (-3.3%) in
      the half-year ended 30 June 2010 compared to the half-year ended 30
      June 2009. The combined gross profit of the Docdata commerce, payments
      and fulfilment services contributed EUR 7.6 million in the half-year
      ended 30 June 2010 compared to EUR 7.2 million in the half-year ended
      30 June 2009. This is mainly the result of the growth in the number of
      transaction in the Netherlands and Germany. The acquired activities
      from the former Dohmen Solutions Group had a gross profit of about
      zero. The Docdata media service contributed EUR 1.0 million to the
      gross profit in the first half-year ended 30 June 2010 compared to EUR
      1.7 million in the first half-year ended 30 June 2009.

    - The gross profit of IAI industrial systems increased with EUR 2.2
      million (117%) mainly due to the systems' delivery of the second and
      last part of the Bulgarian order.

    Operating profit before financing result (EBIT)

    Selling &amp; Administrative expenses

    Other operating income and expenses

    (in thousands, except percentage         Half-year ended  Half-year ended
    figures)
                                               30 June 2010     30 June 2009
    Operating profit (margin) by line of
    business
    (margin as % of revenue by line of
    business)                                     EUR      %      EUR       %
 
    E-commerce service company Docdata            352    1.0    1,496     4.9
    Technology company IAI industrial           2,807   27.2      881    21.0
    systems
    Total                                       3,159    6.9    2,377     6.8
 
    Selling &amp; Administrative expenses (as %
    of revenue)
    Selling expenses                            2,681    5.8    2,314     6.6
    Administrative expenses                     6,876   15.0    5,897    16.9
    Total                                       9,557   20.8    8,211    23.5
 
    Selling &amp; Administrative expenses by
    line of business (as % of revenue by
    line of business)
    E-commerce service company Docdata          8,219   23.0    7,189    23.4
    Technology company IAI industrial           1,338   13.0    1,022    24.4
    systems
    Total                                       9,557   20.8    8,211    23.5
 
    Other operating income and expenses
    (as % of revenue)
    Other operating income                        265    0.6       53     0.1
    Other operating expenses                    (238)  (0.5)    (222)   (0.6)
    Net other operating expenses                   27    0.1    (169)   (0.5)

    - The operating profit of the e-commerce service company Docdata
      decreased with EUR 1.1 million in the half-year ended 30 June 2010
      compared to the half-year ended 30 June 2009. The operating profit of
      the Docdata commerce, payments and fulfilment services decreased with
      EUR 1.2 million, which decrease is mainly the result of substantial
      restructuring costs and start-up losses following the acquisition of
      the activities from the former Dohmen Solutions Group. The total effect
      on EBIT amounts to a loss of EUR 1.3 million in the first half-year
      ended 30 June 2010. These expenses are essential in order to reduce the
      cost base of the acquired activities, and are recognised both under
      selling and administrative expenses. The restructuring of the acquired
      activities will continue in the second half-year 2010 with the
      expectation that these activities will only add to the profit of
      Docdata in the year 2011. The operating profit of Docdata media service
      is EUR 0.1 million in the half-year ended 30 June 2010, which is in
      line with the operating profit in the half-year ended 30 June 2009.

    - The operating profit of IAI industrial systems increased with EUR 1.9
      million in the first half-year 2010 compared to the first half-year
      2009. This increase is the combined effect of a higher gross profit of
      EUR 2.2 million and increased selling and administrative expenses of
      EUR 0.3 million. Gross profit increased in the first half-year 2010 due
      to the delivery of a higher number of security systems, mainly to
      Bulgaria. The selling and administrative expenses increased in the
      first half-year 2010 as a result of higher organisation costs due to
      the expansion of the number employees.
</pre>    Net financing income

    Net financing income for the half-year ended 30 June 2010 amounted to
just over EUR 0.1 million compared to net financing expenses of nearly EUR
0.2 million for the half-year ended 30 June 2009. Net bank interest expenses,
as well as foreign currency exchange results are comparable for both
half-years ended 30 June 2010 and 30 June 2009.

    Income tax expense

    DOCDATA's effective tax rate in the half-year ended 30 June 2010 was
22.3% with an income tax expense of EUR 0.7 million on a profit before income
tax of EUR 3.3 million. In the half-year ended 30 June 2009, the profit
before income tax amounted to EUR 2.6 million and the income tax expense
amounted to EUR 0.7 million (effective tax rate: 27.7%).

    The income tax expense of EUR 0.7 million in the half-year ended 30 June
2010 is the combined result of the following tax treatments of the results
per country:

<pre>    
    - In the Netherlands, income taxes are recorded at a corporate income tax
      rate of 25.5% on the taxable income for the Dutch fiscal entity as well
      as for the Dutch subsidiaries that are not part of this fiscal entity
      (2009: 25.5%).

    - In the United Kingdom, income taxes are recorded against a corporate
      income tax rate of 28.0% (2009: 28.0%).

    - In Germany, income taxes are recorded at a corporate income tax rate of
      in general between 30% and around 32.5% on taxable income for the
      German entities when and where applicable, depending on the actual
      region in Germany of their legal seat (e.g. Berlin, Munich or M?nster
      region).
</pre>    Liquidity and capital resources

    The General Annual Meeting of Shareholders held on 12 May 2010 approved
the proposal to distribute a dividend of EUR 0.55 per ordinary share
outstanding (excluding own shares held by the Company), which had a
decreasing impact of EUR 3.7 million on retained earnings within the equity
of the Company in the half-year ended 30 June 2010.

    In the half-year ended 30 June 2010, the Group realised net cash from
operating activities of EUR 5.4 million (half-year ended 30 June 2009: EUR
0.2 million). Major items resulting in this high net cash from operating
activities were the delivery by IAI industrial systems B.V. in February 2010
of the remaining part of the Bulgarian order, as well as the repayment by the
Dutch tax authorities of EUR 1.3 million prepaid income taxes for the year
2009 due to the recording by the Dutch fiscal entity of an income tax credit
on the liquidation loss for docdata media Ltd. in the UK.

    Furthermore, the Group has drawn EUR 4.4 million from the credit facility
with Dresdner Bank AG (now part of Commerzbank AG) in the half-year ended 30
June 2010 to finance the following:

<pre>    
    - the acquisition (total purchase price of the assets
      acquired: EUR 2.0 million) and post-transaction working capital and
      restructuring of the activities of the former Dohmen Solutions Group.

    - the investments in warehousing in the Netherlands and Germany.
</pre>    Of these total available funds of EUR 9.8 million, EUR 3.7 million 
was
spent on the payment of the 2009 dividend. In addition, the Group has
invested a total amount of EUR 4.5 million in the half-year ended 30 June
2010: EUR 3.2 million in property, plant and equipment (mainly ware?housing
equipment and investments in IT infrastructure) and EUR 1.3 million in
intangibles (predominantly the IT platform and the customer contracts from
the former Dohmen Solutions Group, as well as some IT development costs). The
remaining EUR 1.6 million has resulted in higher cash and cash equivalents
per 30 June 2010.

    In the half-year ended 30 June 2010 1,500 share options were exercised
from the 2006 series at a price of EUR 8.10 per share. The underlying shares
have been delivered by the Company from the own shares in possession of the
Company. The proceeds of EUR 13 thousand have been credited to equity under
reserves, as the purchase of own shares has been charged to reserves in the
past. Per 30 June 2010, the Company owned 349,982 own shares (5.00%), which
number is the same as the number of own shares currently owned by the Company
per 22 July 2010.

    Waalwijk, 22 July 2010

<pre>    
    Consolidated Interim Financial Statements

    1. Consolidated Balance Sheets

    Balance sheets before appropriation of profit.

    
                                                      30 June  31 December
 
                                                         2010         2009
    (in thousands)                                        EUR          EUR
 
    Assets
 
    Property, plant and equipment                       8,394        6,221
    Intangible assets                                   9,812        8,633
    Investments in associates                              62           62
    Other investments                                     100          100
    Trade and other receivables                           200          200
    Deferred tax assets                                   801        1,130
    Total non-current assets                           19,369       16,346
 
    Inventories                                         5,542        6,861
    Income tax receivables                              1,578        3,038
    Trade and other receivables                        15,340       15,566
    Cash and cash equivalents                           7,724        6,147
    Assets classified as held for                         662        1,054
    sale
    Total current assets                               30,846       32,666
 
    Total assets                                       50,215       49,012
 
    Equity
 
    Share capital                                         700          700
    Share premium                                      16,854       16,854
    Translation reserves                                (517)      (1,030)
    Reserve for own shares                            (2,854)      (2,940)
    Retained earnings                                  12,454       13,720
    Total equity attributable to equity holders of     26,637       27,304
    the parent
    Minority interest                                       -          107
    Total equity                                       26,637       27,411
 
    Liabilities
 
    Interest-bearing loans and other                      313          313
    borrowings
    Deferred tax liabilities                              284          288
    Total non-current liabilities                         597          601
 
    Bank overdrafts                                     4,400            -
    Income tax payable                                    451          340
    Trade and other payables                           16,849       18,668
    Provisions                                            602        1,039
    Liabilities classified as                             679          953
    held for sale
    Total current liabilities                          22,981       21,000
 
    Total liabilities                                  23,578       21,601
 
    Total equity and liabilities                       50,215       49,012

    2. Consolidated Income Statements

                                             Half-year ended  Half-year ended
 
                                               30 June 2010     30 June 2009
    (in thousands, except earnings per share      EUR      %       EUR      %
    and average shares outstanding)
 
    Revenue                                    45,989  100.0    34,896  100.0
    Cost of sales                            (33,300) (72.4)  (24,139) (69.2)
    Gross profit                               12,689   27.6    10,757   30.8
 
    Other operating income                        265    0.6        53    0.1
    Selling expenses                          (2,681)  (5.8)   (2,314)  (6.6)
    Administrative expenses                   (6,876) (15.0)   (5,897) (16.9)
    Other operating expenses                    (238)  (0.5)     (222)  (0.6)
 
    Operating profit before financing result    3,159    6.9     2,377    6.8
 
    Financial income                              240    0.5       278    0.8
    Financial expenses                          (110)  (0.2)      (97)  (0.3)
    Net financing income                          130    0.3       181    0.5
 
    Share of profits of associates                  -      -        36    0.1
 
    Profit before income tax                    3,289    7.2     2,594    7.4
 
    Income tax expense                          (734)  (1.6)     (718)  (2.0)
 
    Profit for the period                       2,555    5.6     1,876    5.4
 
    Attributable to:
    Equity holders of the parent                2,662    5.8     1,838    5.3
    Minority interest                           (107)  (0.2)        38    0.1
    Profit for the period                       2,555    5.6     1,876    5.4
 
    Weighted average number of shares       6,649,000        6,649,000
    outstanding
    Weighted average number of shares       7,000,000        6,962,000
    (diluted)
 
    Earnings per share
    Basic earnings per share                     0.38             0.28
    Diluted earnings per share                   0.37             0.27
 
    3. Consolidated Statements of Cash Flows

                                                     Half-year      Half-year
                                                         ended          ended
 
                                                  30 June 2010   30 June 2009
    (in thousands)                                         EUR            EUR
 
    Cash flows from operating activities
    Profit for the period                                2,555          1,876
    Adjustments for:
    Depreciation and amortisation                        1,490          1,622
    Costs share options and delivered shares                73             94
    Financial expenses                                     110             97
    Financial income                                     (240)          (278)
    Share of profits of associates                           -           (36)
    Income tax expense                                     734            718
    Cash flows from operating activities before
    changes in working capital and provisions            4,722          4,093
                                                                        
 
    (Increase) / decrease in trade and other
    receivables and assets held for sale                   777          1,336
                                                                         
    (Increase) / decrease in inventories                 1,319        (3,563)
    Increase / (decrease) in trade and other
    payables and liabilities held for sale             (2,132)          (853)
                                                                        
    Increase / (decrease) in provisions and              (437)             10
    employee benefits
    Cash generated from the operations                   4,249          1,023
 
    Interest paid                                        (108)          (165)
    Interest received                                       81            118
    Income taxes received / (paid)                       1,199          (769)
    Net cash from operating activities                   5,421            207
 
    Cash flows from investing activities
    Acquisition of property, plant and equipment       (3,213)        (1,102)
    Acquisition of intangible assets                   (1,299)           (57)
    Acquisition of subsidiaries                              -          (582)
    Acquisition of associates and other                      -           (62)
    investments
    Proceeds from sale of property, plant and                6              2
    equipment
    Net cash from investing activities                 (4,506)        (1,801)
 
    Cash flows from financing activities
    Proceeds from bank overdrafts                        4,400              -
    Proceeds from exercise of share options                 13            141
    Dividends paid                                     (3,658)        (2,031)
    Repayment of bank overdrafts                             -        (1,185)
    Proceeds from interest-bearing loans and                 -             60
    other borrowings
    Net cash from financing activities                     755        (3,015)
 
    Net increase / (decrease) in cash and cash           1,670        (4,609)
    equivalents
    Cash and cash equivalents at the beginning of        6,147          6,034
    the period
    Effect of exchange rate fluctuations on cash          (93)            188
    held
 
    Cash and cash equivalents at the end of the          7,724          1,613
    Period

    4. Consolidated Statements of Shareholders' Equity

                                                        Total
                                                       equity
                                                      attrib-
                                                       utable  Minor
                                                    to equity   -ity
                                                      holders          Total
                    Share   Share          Retained    of the  inte-
                  capital premium          earnings    parent   rest  equity
                                  Reserves
    (in               EUR     EUR      EUR      EUR       EUR    EUR     EUR
    thousands)
 
    Equity
    Statement
    2009
 
    Balance at 1      700  16,854  (4,531)    7,882    20,905    292  21,197
    January 2009
    Dividend            -       -        -  (1,993)   (1,993)   (38) (2,031)
    distribution
    Exercised           -       -      141        -       141      -     141
    share options
    Delivered           -       -       37        -        37      -      37
    shares for
    remuneration
    Costs share         -       -       57        -        57      -      57
    options
    Consolidation       -       -        -        -         -    (5)     (5)
    of former
    associate
    Total
    recognised          -                     1,838
    income and                  -      443              2,281     38   2,319
    expense for
    the period
    Balance at 30     700  16,854  (3,853)    7,727    21,428    287  21,715
    June 2009
 
    Balance at 1      700  16,854  (3,853)    7,727    21,428    287  21,715
    July 2009
    Costs share         -       -       43        -        43      -      43
    options
    Total
    recognised
    income and          -       -    (160)    5,993     5,833  (180)   5,653
    expense for
    the period
    Balance at 31     700  16,854  (3,970)   13,720    27,304    107  27,411
    December 2009
 
    Equity
    Statement
    2010
 
    Balance at 1      700  16,854  (3,970)   13,720    27,304    107  27,411
    January 2010
    Dividend            -       -        -  (3,658)   (3,658)      - (3,658)
    distribution
    Exercised           -       -       13        -        13      -      13
    share options
    Costs share         -       -       73        -        73      -      73
    options
    Realised            -       -      270    (270)         -      -       -
    translation
    reserves
    Total
    recognised
    income and          -       -      243    2,662     2,905  (107)   2,798
    expense for
    the period
    Balance at 30     700  16,854  (3,371)   12,454    26,637      -  26,637
    June 2010

    5. Consolidated Statements of recognised Income and Expense

                                                     Half-year  Half-year
 
                                                          2010       2009
    (in thousands)                                         EUR        EUR
 
    Foreign exchange translation                           243        443
    differences
    Income / (Expense) recognised directly in              243        443
    equity
 
    Profit for the period                                2,555      1,876
 
    Total recognised income and expense for the          2,798      2,319
    period
 
    Attributable to:
 
    Equity holders of the parent                         2,905      2,281
    Minority interest                                    (107)         38
    Total recognised income and expense for the          2,798      2,319
    period
</pre>    6. Notes to the Consolidated Interim Financial Statements

    6.1 Reporting entity

    DOCDATA N.V. (referred to as "DOCDATA" or the "Company") is a company
domiciled in Waalwijk, the Netherlands. The consolidated interim financial
statements of DOCDATA N.V. as at and for the half-year ended 30 June 2010
comprise DOCDATA N.V. and its subsidiaries (together referred to as the
"Group") and the Group's interest in associates and jointly controlled
entities.

    The consolidated financial statements of the Group as at and for the year
ended 31 December 2009 are available upon request from the Company's
registered office at Energieweg 2, 5145 NW in Waalwijk, the Netherlands, or
at the Company's corporate website, http://www.docdatanv.com.

    6.2 Statement of compliance

    These consolidated interim financial statements have been prepared in
accordance with IAS 34 (Interim Financial Reporting). They do not include all
of the information required for full annual financial statements, and should
therefore be read in conjunction with the consolidated financial statements
of the Group as at and for the year ended 31 December 2009.

    6.3 Significant accounting policies

    The consolidated financial statements of the Group are prepared in
accordance with the International Financial Reporting Standards as adopted by
the European Union ("IFRS"). The accounting policies applied by the Group in
these consolidated interim financial statements are the same as those applied
by the Group in its consolidated financial statements as at and for the year
ended 31 December 2009. For a summary of the significant accounting policies
under IFRS, please refer to the Group's Annual Report for the financial year
ended 31 December 2009.

    6.4 Audit

    The consolidated interim financial statements and the reconciliations
included in this report and its enclosures have not been audited by the
external auditors.

    6.5 Management representations

    In the opinion of the management, these consolidated interim financial
statements include all adjustments necessary for a fair presentation of the
financial position, operating results and cash flows of all reporting periods
herein. All such adjustments are of a normal recurring nature, except for
recorded non-recurring expenses related to the acquisition of the former
Dohmen Solutions business activities (including acquisition costs, advisory
fees, restructuring expenses, etc.).

    The results of the operations for the half-year ended 30 June 2010 are
not necessarily indicative of the results for the entire financial year
ending 31 December 2010.

    6.6 Organisation structure and segmentation

    From 1 January 2008 onwards, DOCDATA has changed the organisation
structure from a country organisation to a divisional structure. Starting the
financial year 2008, DOCDATA identifies for the purpose of preparing
financial statements the following two lines of business: Internet service
company Docdata (consisting of the following four services: Docdata commerce,
Docdata payments, Docdata fulfilment and Docdata media) and Technology
company IAI industrial systems. Starting 1 January 2010, the names of the two
lines of business are:

<pre>    
    - E-commerce company Docdata;

    - Technology company IAI industrial systems.

</pre>    The segmentation for both comparable consolidated interim financial
statements for the half-year ended 30 June 2009 and the half-year ended 30
June 2010 has been prepared accordingly and in a consistent way.

    6.7 Consolidation

    In the consolidated interim financial statements for the half-year ended
30 June 2010, the following treatment has been applied for the following
incorporations:

<pre>    
    - IAI excimer systems B.V.: per 1 April 2010, IAI industrial systems B.V.
      has incorporated a new legal entity for a Dutch subsidiary, IAI excimer
      systems B.V. in Veldhoven. The balance sheet and income statement of
      IAI excimer systems B.V. have been included in the DOCDATA
      consolidation starting per the date of incorporation;

    - Docdata Assets GmbH, Docdata e-Commerce Services GmbH, Docdata Fashion
      Services GmbH: these three new German subsidiaries, wholly owned by
      docdata germany GmbH, have been incorporated (based on new shelf
      companies, "Blitz GmbH") to provide the legal structure enabling the 
      asset purchase of the former Dohmen Solutions activities per 16 April
      2010. The balance sheet and income statement of these three GmbH's have
      been included in the DOCDATA consolidation starting per this date.
</pre>    In the consolidated financial statements for the year ended 31 
December
2009, the following treatment has been applied for the following
incorporation and acquisition:

<pre>    
    - IAI industrial systems GmbH: per 12 January 2009, IAI industrial
      systems B.V. has incorporated a new legal entity for its Germany
      subsidiary, IAI industrial systems GmbH in Berlin. The balance sheet
      and income statement of IAI industrial systems GmbH have been included
      in the DOCDATA consolidation starting per the date of incorporation;

    - Pegasus Mail GmbH: on 9 January 2009, docdata e-business GmbH has
      acquired all issued shares of Pegasus Mail GmbH in M?nster (Germany).
      This company operates fulfilment services related to print and mail.
      The balance sheet and income statement of Pegasus Mail GmbH have been
      included in the DOCDATA consolidation starting per the acquisition
      date.

    6.8 Property, plant and equipment

                                          30 June  31 December
 
                                             2010         2009
    (in thousands)                            EUR          EUR
 
    Land and buildings                      1,297        1,347
    Machinery and equipment                 3,749        2,935
    Other                                   2,254        1,881
                                            7,300        6,163
    Under construction                      1,094           58
    Total                                   8,394        6,221
</pre>    The book value of property, plant and equipment has increased with 
EUR
2.2 million over the half-year ended 30 June 2010 as a combined result from
capital expenditure for EUR 3.2 million, depreciation charges for EUR 1.1
million and currency exchange profits for EUR 0.1 million on the UK property,
plant and equipment accounted for in British pounds. Included in capital
expenditure in the half-year ended 30 June 2010 is the purchase price of in
total EUR 0.2 million paid at acquisition for the equipment bought from the
former Dohmen Solutions Group, and EUR 0.6 million investments by IAI
industrial systems B.V. in buildings and laser production equipment. The
remainder of about EUR 2.4 million relates to investments in the fulfilment
warehouses of the Group and is predominantly spent in Germany for the
warehouses located in the Berlin and Munich regions.

   6.9 Intangible assets

<pre>    
                                          30 June   31 December
                                                           2009
                                             2010
    (in thousands)                            EUR           EUR
 
    Goodwill                                6,889         6,626
    Customer contracts                      1,062           468
    IT platforms                            1,861         1,539
                                            9,812         8,633
    Under construction                          -             -
    Total                                   9,812         8,633
</pre>    The book value for intangible assets has increased with EUR 1.2 
million
during the half-year ended 30 June 2010, due to the following:

<pre>    
    - capital expenditure in customer contracts and IT platforms (EUR 1.3
      million in total), predominantly for the acquisition of the customer
      contracts and the IT-platform from the former Dohmen Solutions Group 
      (EUR 1.2 million in total at acquisition);

    - amortisation charges for customer contracts and IT platforms (EUR 0.4
      million in total);

    - currency exchange profits (EUR 0.3 million) on the valuation of the
      intangible assets with an original value in British pounds (i.e.
      related to the Braywood and Hitura acquisitions).

    6.10 Inventories
                                          30 June   31 December
                                                           2009
                                             2010
    (in thousands)                            EUR           EUR
 
    Raw and auxiliary materials             1,190           720
    Work in progress                        3,951         6,066
    Finished goods                            401            75
    Total                                   5,542         6,861
</pre>    The book value of inventories decreased EUR 1.3 million in the 
half-year
ended 30 June 2009, which is the combined effect of an inventory increase
from the acquisition of the former Dohmen Solutions business activities (EUR
0.5 million) and decreased work in progress at IAI industrial systems (EUR
1.8 million). IAI industrial systems' order book decreased about EUR 5
million from EUR 13.8 million at 31 December 2009 to EUR 8.6 million at 30
June 2010 resulting from system deliveries during the half-year ended 30 June
2010 for a revenue of about EUR 10 million and new orders booked with a total
sales value of about EUR 5 million.

    6.11 Segmented Consolidated Income Statement half-year 2010

<pre>    
                                              E-commerce        Technology
                                                               company IAI
                                           service company      industrial
                                               Docdata           systems
    (in thousands, except earnings per          EUR      %        EUR       %
    share and average shares outstanding)
 
    Revenue                                  35,666  100.0     10,323   100.0
    Cost of sales                          (27,103) (76.0)    (6,197)  (60.0)
    Gross profit                              8,563   24.0      4,126    40.0
 
    Other operating income                      245    0.7         20     0.2
    Selling expenses                        (2,290)  (6.4)      (391)   (3.8)
    Administrative expenses                 (5,929) (16.6)      (947)   (9.2)
    Other operating expenses                  (237)  (0.7)        (1)       -
 
    Operating profit before financing           352    1.0      2,807    27.2
    result
 
    Financial income                            207    0.6         33     0.3
    Financial expenses                         (77)  (0.2)       (33)   (0.3)
    Net financing income / (expenses)           130    0.4          -       -
 
    Share of profits of associates                -      -          -       -
 
    Profit before income tax                    482    1.4      2,807    27.2
 
    Income tax profit / (expense)                99    0.2      (833)   (8.1)
 
    Profit for the period                       581    1.6      1,974    19.1
 
    Attributable to:
    Equity holders of the parent                688    1.9      1,974    19.1
    Minority interest                         (107)  (0.3)          -       -
    Profit for the period                       581    1.6      1,974    19.1
</pre>    Corporate website: http://www.docdatanv.com


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