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JoWooD Productions Software AG

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

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
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
~
end of announcement        euro adhoc 25.02.2004

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

Branche: Software
ISIN: AT0000747357
WKN: 074735
Index: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / free trade

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