1.1 Introduction
Re-creating a company and making it the best place to work for is a challenge. Qurius is a company with the right kind of people; dedicated, talented, intelligent and with a sense of humour. What Qurius needs is new direction and that might seem easier than it is. We started in the spring of 2010 and we will need time to succeed. In the first half of 2010, we established our vision and in the second half of 2010 we will develop and start implementing the strategy based on this vision. We‟re aiming for strong international cooperation. After all, what‟s the point of being an international company, if we don‟t profit from the enormous amount of knowledge, experience, and potential within the organization? We also see the need for a significant strategic repositioning. More than ever, we‟re positioning ourselves as an ICT solutions provider to the European mid-market with a broad portfolio of services and products. In several vertical markets like waste management, professional services, healthcare or process industries we are the leading partner for our customers.
At the Annual General Meeting of Shareholders of 29 April 2010 we presented our Vision. Our objective is to become the leading company in the field of sustainable IT. We launched our ambition to become a 100% sustainable company in 2014. We not only aim for a better business, but also for a better world. We create sustainable success.
1.2 Key activities
In the first six months of 2010, the first major steps were taken to reinvent the Qurius organization. In all countries, key management was added or replaced. On 25 January 2010, Peter van Haasteren was appointed as Chairman of Qurius the Netherlands and Managing Director of the Dutch organization. Robert Lagas became Deputy Chairman of the Dutch management team. Frank van der Woude, until January 2010 responsible for the Dutch operation and member of the Executive Board, announced his departure from the company on 12 February. On 15 June, we announced the appointments of Mark Cockings as new Managing Director of Qurius UK and Jan Druppel as Managing Director of Belgium. In May, Qurius senior staff have been reinforced by Geerd Schlangen as Chief Brand Officer, Robert van der Kleij as Corporate Strategist and Jeroen Verkuyl as Manager Corporate Social Responsibility.
In order to change the company effectively and to ensure involvement of key management of all country organizations, the Executive Board invited 23 people into the International Leadership Program. The ILP members were all asked to make a substantial investment in the company, adding up to EUR 1.4 million in cash, as announced on 22 March 2010. This investment is earmarked to provide funding for activities in line with the new strategic direction. On 19 March 2010, Qurius issued 4,729,730 shares to the International Leadership team at the 19 March closing price. . These shares are subject to a three year lock in period.
At the AGM of 29 April 2010, the shareholders approved a Long Term Incentive Program developed especially for the members of the Qurius International Leadership Program. For an overview of this program, please refer to the AGM presentation on the Qurius website. The AGM also approved several amendments to the Articles of Association, referring to the increase in the authorized share capital in connection with the ILP.
In this first half year, Qurius made the strategic decision to sell its Infor ERP LN business to Infor and to invest in complementary technology and people to strengthen its proposition as a leading system integrator and ICT solutions provider. Following this strategy, Qurius hired a development team from OneDev in the Netherlands and acquired the BI consulting team from Evidanza, Qurius‟ strategic BI partner in Germany, consisting of 10 consultants, two sales people and more than 40 customers.
The Infor ERP LN business to Qurius was non-core and didn‟t form part of Qurius‟ strategy. The unwinding of the Infor ERP LN business includes around 55 full-time employees, mainly consultants, from Germany, Spain and Italy.

The Infor business was not a major line of business to Qurius and does not qualify as discontinued business under IFRS and is therefore not presented as discontinued business in 2009 and 2010. Net sales from the Infor ERP LN business YTD (up to and including June 2010) is EUR 5.8 million. EBIT contribution YTD (up to and including June 2010) is EUR 1.2 million. Proceeds from the sale are EUR 4 million in cash. The transaction result amounts to EUR 3.1 million and is presented under other income.
In this first half year of 2010. Qurius still felt the effects of the economic crisis. Our largest operation, the Netherlands, showed disappointing sales as customers held back investments in our products and services, and price pressure impacted our rates. In Germany, our operations showed a good improvement, with record software sales exceeding prior years. And amidst a rough economic climate, our Spanish operation manages quite well and clearly outperforms the competition. Our smaller operations in the UK and Belgium show modest performance and both have welcomed new management to strengthen the operations.
Microsoft has rewarded Qurius Spain with the Microsoft Country Partner of the Year Award. The reason for the award? Strong engagement with Microsoft and delivering customer satisfaction, showing innovation and business impact. Qurius Spain was also recognized as Finalist in the Distribution Partner Award Category and Qurius UK was a Finalist in the NAV Partner of the Year Category with its ParkVision solution.
1.3 Financial results for the first half of 2010
In the first half of 2010 Qurius‟ net sales decreased by EUR 7.3 million to EUR 54.0 million, compared to H1 2009. In H1 2010 an EBIT before restructuring costs of EUR 2.4 million was achieved (2009: EUR 2.1 million). This result includes the result of the sale of the Infor business of EUR 3.1 million. Including restructuring costs the EBIT amounted to EUR 0.3 million (2009: EUR 1.5 million). The net result in H1 2010 was EUR -0.1 million (2009: EUR 0.0 million).
1.4 Strategic repositioning
We are convinced that the complete Microsoft suite offers us the right technology platform to optimize our customers‟ businesses through IT. Qurius is one of the few companies worldwide that offers the full Microsoft product and technology suite for design, architecture, infrastructure, deployment and systems management. We have a huge amount of Microsoft software related knowledge and expertise across Europe. At the same time, our extremely broad product portfolio currently lacks focus, which causes the same knowledge and expertise to be fragmented. In order to profit from our international presence and knowledge, we need to be able to share, create and optimize products and technology across all countries. This forces us to make strategic choices. In the second half of 2010, the Qurius Board and International Management Team will make the necessary decisions in order to create a lean, smart and sustainable organization with professionals who can service our customers with better IT solutions across all countries.
1.5 Outlook
For the second half of 2010, our software sales will continue to suffer from continued customer reluctance to invest in IT products and services in our largest operation (the Netherlands). Price pressure may also lead to further margin erosion. We expect that our German and Spanish activities will step up their performance compared to previous years. However, this may not be enough to bring sufficient EBIT contribution for the full year 2010. If necessary, we will reduce our cost base in the second half of the year to be better positioned to deal with the new conditions in the Netherlands‟ market.

1.6 Risk profile
Pages 22 to 25 of the Annual Report 2009 contain a summary of the risk assessment that Qurius carried out in 2009. The assessment concerns the identification of strategic risks, operational risks and financial risks.
We are affected by financial risks related to:
1. The way we do business
2. The way our business is financed
3. The financial situation of our customers
We identify credit risk, currency risks, financing risks, interest rate risk and risks related to our intangible fixed assets. In our view, the nature and potential impact of the risks in these groups in the first six months of 2010 were not materially different than in 2009 and will not be materially different in the second six months of 2010.
In addition, the following should be noted:
 Further headcount reductions may impact the realization of certain structural organization process improvements.
 The economic and market conditions are expected to remain challenging in the second half of 2010. As a consequence the market risk is viewed as relatively high. If current economic and market circumstances deteriorate further, this potentially has a significant impact on Qurius‟ markets, Qurius‟ position in it, the company‟s ability to implement its strategy and Qurius‟ future cash flows.
 The present economic downturn creates a situation of unpredictability regarding collection of receivables and potentially a higher number of bankruptcies. As a consequence, the risk that receivables cannot be collected may increase.
 We will continue to monitor risks closely and manage our response through a combination of control measures and actions as new risks may emerge and current risks may change in the second half of 2010.
1.7 Executive Board responsibility statement
The members of the Executive Board, as required by section 5:25d, paragraph 2, under c of the Dutch Financial Supervision Act (Wet op het financieel toezicht), confirm that to the best of their knowledge:
 The Interim Consolidated Financial Statements for the six months ended 30 June 2010 give a true and fair view of the assets, liabilities, financial position and profit or loss of Qurius N.V. and its consolidated companies, and
 It provides a true and fair view of the development and performance of the business during the first six months of the financial year of Qurius N.V. and its consolidated companies, and the expected development and performance of the business, provided that the interests of Qurius N.V. and its consolidated companies are not harmed by disclosure, with particular attention for investments, and the circumstances of which the development of revenues and profitability are dependent.
1.8 Forward looking statement
This report contains information as referred to in the articles 5:59 jo. 5:53, 5:25d and 5:25w of the Dutch Financial Supervision Act (Wet op het financieel toezicht). Forward looking statements, which can form a part of this report refer to future events and may be expressed in a variety of ways, such as „expects‟, „projects‟, „anticipates‟, „intends‟ or other similar words (“Forward looking statements”). Qurius has based these forward looking statements on its current expectations and projections about future events. Qurius‟ expectations and projections may change and Qurius‟ actual results, performance or achievements could differ significantly from the results expressed in or implied by these forward looking statements due to possible risks and uncertainties and other important factors which are neither manageable nor foreseeable by Qurius and some of which are beyond Qurius‟ control. When considering these forward looking statements, you should bear in mind these risks, uncertainties and other important factors described in this report or in Qurius‟ other annual or periodic filings. For a non limitative discussion of the risks, uncertainties and other factors that may affect Qurius‟ actual results, performance or achievements, we refer you to this report and the Annual Report 2009. In view of these uncertainties no certainty can be given about Qurius‟ future results or financial position. We advise you to treat Qurius‟ forward looking statements with caution, as they speak only as of the date on which the statements are made. Qurius is under no obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable (securities) legislation.