IDS Scheer, Inc. Continues to Record Strong Growth in North America; 94% Growth in Last Quarter, 80% Over the Past Nine Months

Business Wire, Nov 3, 2003

Business Editors

BERWYN, Pa.--(BUSINESS WIRE)--Nov. 3, 2003

IDS Scheer, Inc., the leading provider of business process excellence services and tools, today announced strong growth in North America for its business process management solutions and consulting services through the first nine months of 2003. The North American business unit is on track for record growth in 2003 with 80% over the past nine months and 94% growth in the last quarter

In the nine-month period ending September 30, 2003, IDS Scheer's corporate parent, IDS Scheer AG, achieved significant growth. Operating profit increased by 45% to 23.9 million USD/20.4 million EUR (previous year: 17.2 million USD/14.1 million EUR). The operating margin increased correspondingly to 13.5% in the first nine months of 2003 (previous year: 10.7%). Acquisition-related expenses for the acquisitions of Groupe Expert and the Plaut companies are included in these figures. Operating profit before acquisition and integration expenses was 24.7 million USD/21.1 million EUR, nearly 50% above the 2002 level; the EBIT margin was nearly 14%. Net profit for the first nine months of 2003 increased by 65% to 15.1 million USD/12.9 million EUR (previous year: 9.1 million USD/7.8 million EUR).

Revenue based on the ARIS Process Platform increased to 46.6 million USD/39.8 million EUR (previous year: 40.4 million USD/34.5 million EUR). Operating profit in the product segment increased by 120% to 9.4 million USD/8.0 million EUR (previous year: 4.2 million USD/3.6 million EUR), representing an EBIT margin of 20.1% (previous year: 10.5%). The number of installed ARIS licenses grew by over 23% worldwide to 42,400 (previous year: 34,400) fueled by increased demand for ARIS PPM (Process Performance Manager), the software tool for measuring process efficiency.

IDS Scheer, Inc. led international growth in revenue and earnings. The international subsidiaries generated revenue of 83.2 million USD/71.2 million EUR (previous year: 53.9 million USD/46.1 million EUR), an increase of 54.4% (before segment consolidation). Without including additional revenue from the new acquisitions, revenue from outside Germany grew by 16.7% and IDS Scheer, Inc. accounted for 94% of that revenue.

IDS Scheer, Inc. is already realizing the impact of the Plaut acquisition with significant customer wins including Southwest Great American and Celltech Americas with more in the pipeline. In addition, IDS Scheer, Inc. expanded its contract with the U.S. Army for BPM and added MAXXUS to its roster of consulting clients.

"These results demonstrate how we have significantly strengthened our market position in North America through organic growth as well as our strategic acquisition of Plaut North America," said Dr. Mathias Kirchmer, president and CEO, IDS Scheer, Inc.

Expanded Partnership with SAP

IDS Scheer AG and IDS Scheer, Inc. further strengthened its partnership with SAP offering comprehensive solutions for business process management (BPM). The companies recently announced integration of IDS Scheer's ARIS Process Platform with SAP's NetWeaver open integration and application platform.

"With the integration of ARIS into SAP NetWeaver, we will elevate the importance of a client's business, and not just the technology, into the forefront," added Kirchmer. "This partnership will establish the ARIS method and tools as the standard of excellence in the SAP NetWeaver platform."

New Solutions for SMEs

IDS Scheer, Inc. also announced its ARIS SmartPath, an end-to-end solution including software, services and content targeting companies with $250 million or less in annual sales. This strategic offering enables SMEs to optimize the benefits of the leading ERP solutions by taking a process-oriented approach to implementation.

About IDS Scheer, Inc.

IDS Scheer, Inc., the North America operation of IDS Scheer AG (Saarbrucken, Germany), is the leading provider of corporate solutions for business process management. The company's ARIS solutions suite offers a complete portfolio for "Business Process Excellence," including the methodologies, software and solutions to address all phases of the business process lifecycle. From small/medium enterprises to Global 1000 organizations, IDS Scheer, Inc. provides a wide array of services to help customers optimize, and profit from, their investments in Supply Chain Management (SCM), Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Enterprise Application Integration (EAI) solutions. As a SAP Global Services Partner, IDS Scheer, Inc. enables customers to maximize their SAP investment and build winning businesses. As part of an organization of more than 2000 employees worldwide and over 200 in North America, IDS Scheer, Inc. is built upon a foundation of business process excellence that began when the company was founded in 1984 by August-Wilhelm Scheer, widely recognized as a founding father of Business Process Management. For more information on IDS Scheer, Inc., visit http://www.ids-scheer.com/us.