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annual report 2007
the customer excellence group

key figures
Revenue and eaRnings (Consolidated)
2007
thousands EUR
2006
thousands EUR
2005
thousands EUR
Revenues thousands EUR 231,536 164,813 110,918
EBITDA thousands EUR 47,327 27,782 14,302
EBIT thousands EUR 32,666 19,022 9,673
EBT thousands EUR 25,298 13,081 7,428
EBA thousands EUR 14,645 9,493 4,425
Net income (consolidated) thousands EUR 14,487 9,575 4,425
Cashflow (Consolidated)
From operating activities thousands EUR 34,239 8,717 557
Net income profit/loss thousands EUR - 7,368 - 5,021 - 2,043
From investing activities thousands EUR - 99,129 - 19,714 - 64,369
From financing activities thousands EUR 79,658 20,503 71,174
BalanCe sheet (Conolidated)
shaRe
Cash and cash equivalents from current assets thousands EUR 23,176 11,399 8,339
Total assets thousands EUR 452,572 237,711 185,226
Shareholder’s equity (without special item) thousands EUR 188,547 105,792 88,315
Equity ratio % 42 45 48
Earnings per share (undiluted) EUR 0.42 0.32 0.21
Earnings per share (diluted) EUR 0.42 0.32 0.21
Year-end share price (Xetra) EUR 12.33 8.45 5.85
Shares as of December 31 No. of shares 37,511,247 31,071,099 29,655,000
employees
Per 31.As of December 31 total 5,930 3,583 2,927
As of December 31 FTE 4,962 2,669 2,170

“ With our customer excellence philosophy We achieve
utmost private customer satisfaction and significantly
contribute to optimum creation of value for our clients.”
our mission
for the enterprises on whose behalf we operate we often are the most
important interface to their private customers. in order to meet this
requirement we unite many different competencies under the umbrella
d+s europe ag group as “the customer excellence group”.
the link of all parts of the group is our joint mission of “customer
excellence”. we consider our services the basis for sustainable customer
loyalty, generating outstanding sales results. for this reason all
our group’s operative transactions serve to fulfill private customers’
concrete and emotional key expectations wherever and whenever they
make contact with the enterprise. we treat private customers as if
they were our own customers.
it is our joint task to invest all our efforts into providing private customers
with ever more personalized and dynamic offers. our role as
service provider makes demands on our experience of many years, our
innovative strength and our flexibility. Because our clients’ success is
our success.

heycom acquisition and strong organic groWth
as factors of success 2007
tuRnoveR
EUR millions
300
200
100
0
+ 40.5% *
2006 2007
* First consolidation of Heycom GmbH from July 2, 2007 on
success story 2007
in 2007 d+s europe ag accomplished its largest development leap
in the company history. due to acquisition of the heycom group with
its approximately 1,000 employees d+s europe ag gained a leading
position as service provider in the fashion industry in the dynamically
growing market for e-commerce. at the same time d+s europe ag
achieved a leap in turnover and earnings.
organic growth on the basis of numerous new contracts played an
essential role in the success story. d+s europe ag and its consolidated
companies without the heycom group acquired in mid-2007
achieved a 22% increase in turnover and an eBit increase of 41%.
Correspondingly, in 2007 d+s europe ag created over 1,000 new
jobs in its service centers.
numBeR of shaRes
million units
40
+ 20.6 %
30
20
10
0
2006 2007
eBit
EUR millions
40
30
+ 72.1%
20
10
0
*
2006 2007
maRket Capitalisation
EUR millions
500
400
300
200
100
0
+ 76.2 %
employees
thousands
in 2007 the successful growth again led to a significant rise in goodwill
of d+s europe ag. with a stock price gain of 46% the d+s share
again was among the top performers in sdaX in 2007.
2006
6
5
4
3
2
1
0
shaRe peRfoRmanCe
EUR
15
14
13
12
11
10
9
8
7
+ 65.0%
2006 2007
+ 46.0 %
2006 2007

“ our footing as leading excellence service provider
for customer contact management Will make us
europe’s largest full-service provider for e-commerce
management.”
our vision
the private customer market is changing. a new generation of “digital
customers” is emerging. they mainly handle their business transactions
via multi-media channels and make intensive use of the advantages of
e-commerce. trade and commerce adjust their multi-channel strategies
accordingly, and in this complex area they increasingly rely on specialized
service providers such as d+s europe ag. thus a completely
new market is arising, distributing market shares now and in the years
to come. in this process, d+s europe ag and its subsidiaries strive
to occupy a dominant market position as “the customer excellence
group”.
already today we are the leading german excellence provider for
customer contact management and provide a comprehensive service
portfolio generating topmost added value for our clients and for their
private customers. we are also the leading full-service provider for
e-commerce in the fashion and clothing industry.
our future strategy will be aimed at expanding our international e-commerce
business. we want to become europe’s largest full-service
provider for e-commerce management.

d+s europe ag
profile
d+s europe was founded in 1984 and has been established as telemarketing
agency and listed since may 2000. it has since developed
increasingly in the years following 2004 from a mere communication
center enterprise into a leading solutions provider for comprehensive
and value-oriented e-commerce and customer contact
management.
with over 6,000 employees today d+s europe ag, as “the customer
excellence group”, represents the entire process chain for one-stop
multi-media transaction management with private customers.
in this function d+s europe ag cares for several million private customers
of mainly international enterprises from almost all industries,
such as telecommunication companies, energy suppliers, media, publishing
houses, banks, insurances, trading firms and tourism operators,
via communication channels such as fixed and mobile networks,
internet, fax and letter post. for renowned brand manufacturers d+s
europe operates online shops and europe-wide e-commerce business.
for further information please refer to www.dseurope.ag.

contents
Letter to the shareholders 4
Management Board and Supervisory Board 8
Corporate Governance 9
Report of the Supervisory Board 11
D+S europe’s Share 14
customer excellence 18
Positioning and Strategy 18
D+S e-commerce & fulfillment services 20
D+S mobile & telephony services 24
D+S communication & collection services 28
Report of Management 32
Business and Basic Conditions 34
Business Development 42
Property Situation 46
Financial Situation 48
Human Resources 51
Remuneration 51
Supplementary Statement 53
Risks 54
Forecast 70
Finance 72
Consolidated Financial Statement 74
Balance Sheet 74
Profit and Loss Account 76
Cash Flow Statement 77
Changes in Shareholders’ Equity 78
Assets 80
Notes on the Consolidated Financial Statements 84
Auditors’ Report 130
Our Locations 131
Financial Calendar/Contact 132
Imprint 133

4 letteR to the shaReholdeRs
letter to the shareholders
ouR thRee majoR aChievements!
strong organic groWth
In 2007 we achieved a 20-percent increase in turnover and a 41-percent rise in EBIT without the Heycom
Group newly acquired in mid-2007. Our “D+S communication & collection services” which generated
an increase in turnover of 34% and an EBIT increase of 87.5% reaching an EBIT margin of 12.1% was our
most significant driver. Altogether over 1,000 new jobs were created within the Group, more than 400
of which in our service center on Rügen which opened in the middle of last year.
extension of market positioning
With the Heycom Group acquisition we tapped the booming growth market of e-commerce management.
Heycom, as specialist for e-commerce, has an outstanding market position as service provider for the
fashion industry in the European region. With successful clients and also two internationally operating
fashion brands as new clients we are showing over-proportional growth compared to the market. With
e-commerce management, the Group now has a new strong pillar.
added value for the group
In 2007 we converted the successful growth into a significant value increase for D+S europe AG. With a price
gain of 46% from EUR 8.45 (closing price XETRA 2006) to EUR 12.33 (closing price XETRA 2007) the D+S
share again belongs to the top performers in SDAX of 2007. While we increased the number of shares by only
20.6% from 31.1 million (December 31, 2006) to 37.5 million (December 31, 2007) market capitalization
rose by 76.2% from EUR 262.5 million (December 31, 2006) to EUR 462.5 million (December 31, 2007).

Dipl. Dipl.-Ing. Ing. Achim Plate
Chairman Management of the Board Board
(Chief Executive Officer/CEO)
dear shareholders,
dear colleagues, friends and business partners,
in 2007, d+s europe ag accomplished much more than just another record in
turnover and earnings. above all, our enterprise performed the biggest development
leap in its history. with the business unit e-commerce management, established
after the acquisition of the heycom group, another strong pillar has been
added to our group.
e-commerce management will be of major importance for the further development
of our group. Because internet sales are booming and the market is adapting to
this trend with multi-media channel strategies increasingly relying on specialized
service providers such as d+s europe ag. on this basis, within half a year after
the heycom acquisition we managed to gain several new clients from the fashion
and clothing industry. they put their complete e-commerce sales in our hands.
among these new clients, there are also two large branded enterprises of international
relevance. we are already conducting talks with further global players and
renowned brand labels.
at present we perceive the dynamism day by day which is shaping this new market.
in the years to come, this is where market shares will be distributed. in this process
d+s europe ag intends to occupy a dominant market position.
that is why, at the beginning of 2008, we formulated our new corporate vision
which we intend to pursue consistently. it states: we want to make d+s europe ag
europe’s largest full-service provider for e-commerce management in the fashion
industry.
the acquisition of heycom was a first big step on this way. a further step was the
takeover of 85.2% of the online marketing agency adamicus gmbh at the beginning
of 2008. moreover, we are planning to set another milestone with a large
acquisition in 2008.
letteR to the shaReholdeRs
5

6 letteR to the shaReholdeRs
the economic success of our strategy is already reflected in the high organic and
anorganic growth which we achieved in 2007. turnover rose by 40.5% from
euR 164.8 million in the previous year to euR 231.5 million. even more welcome
was the development of our earnings figures. eBitda increased by 70.1% from
euR 27.8 million in the previous year to euR 47.3 million. eBit rose by 72.1%
from euR 19.0 million in 2006 to euR 32.7 million. thus we clearly improved the
eBit margin from 11.5% a year before to 14.1%.
these figures are burdened by one-off acquisition and integration expenditures in
the amount of euR 0.75 million for the acquisition of the heycome group. earnings
per share after one-time write-offs on deferred tax items due to the corporate
tax reform amount to 42 cents.
we have achieved this highly dynamic turnover and earnings trend by d+s europe’s
broad 3-pillar position established in the past two-and-a-half years. our group now
has three segments which occupy three growth markets, each with two-figure annual
growth rates. these are “d+s mobile und telephony services” which mainly serves
the euR 2.3-billion market of value-added services with its annual growth rate of
12% as well as the euR 600-million market of mobile service. the euR 2.3-billion
market for communication center services dominant in our “d+s communication &
collection services” segment grows annually by 17% on average. and our segment
“d+s e-commerce & fulfillment services”, newly established in 2007, addresses a
market that has a volume of about euR 4.2 billion growing by up to 27% per year.
from this safe position on three pillars d+s europe ag is synonymous with sound
growth. turnover of d+s europe ag’s consolidated companies without heycom,
acquired with effect from july 2, 2007, rose by 20.4% from 2006 to 2007,
reaching euR 198.4 million accompanied by a rise in eBit of 40.7% up to
euR 26.6 million.
the strongest driver of organic growth was the segment “d+s communication &
collection services”. apart from address, collection and payment services
d+s europe ag here provides comprehensive outsourcing of communication
center services with a workforce of over 4,000 agents. due to our technological
competence, e.g. in control of resources with our intraday Complete Control
(iCC) and in dialog automation with our award-winning voice portal suite, we have
an edge over our competitors which promotes our growth. thus in 2007, we
created more than 1,000 new jobs in our service centers so that our existing
german locations are fully exploited. moreover, in mid-2007 we opened our ninth
national service center on the Baltic island of Rügen, expanding it to over 400
employees within one year. all in all, our group grew from 3,583 employees at
the end of 2006 to 5,930 employees at the end of 2007, in which organic
growth and the heycom acquisition had almost equal shares.
in 2008, we expect to dynamically continue our turnover and earnings development.
especially in the field of e-commerce we will distinctly grow to an over-proportional
degree compared to the market. that is why for the coming years we have already
initiated several large-scale growth measures for the heycom group, in the course
of which in the medium-run, storage space will be tripled from currently 35,000 m²
to over 100,000 m².

in the field of communication center services we will establish our tenth national
service center with several hundred employees in the first half of 2008 on the
basis of further new contracts. moreover, in 2008 we will launch our new organically
added payment services. our own electronic payment solutions will considerably
increase the scope of our transactions which we bring to account between
our clients and their private customers.
Based on the strong organic growth we expect a turnover in 2008 in the amount
of over euR 320 million with an eBit margin of 14 to 15%. in these figures our
new large acquisition project has not yet been taken into account.
in future, improvement in earnings power and thus in the value of our enterprise
will still be our most important goal.
after the d+s share had already gained over 44% in 2006 and over 64% in 2005,
we also belonged to the top performers in sdaX in 2007, reaching a plus of 46%.
thus the share price of the d+s share rose from euR 8.45 XetRa closing price
at the end of 2006 to euR 12.33 XetRa closing price at the end of 2007.
in spite of the generally weak start of the 2008 business year we are confident
that we will be able to develop d+s europe ag successfully and with an increase
in value for the benefit of our shareholders and employees. we have already set
the course for important changes.
sincerely,
Dipl.-Ing. Achim Plate
Chairman of the Board
(Chief Executive Officer/CEO)
D+S europe AG
letteR to the shaReholdeRs
7

8 management BoaRd/supeRvisoRy BoaRd
S. Heyrowsky
management board
Dipl.-Ing. Achim Plate
Chairman of the Board (Chief Executive Officer/CEO)
Tobias Hartmann
Board (Chief Operating Officer/COO)
supervisory board
Klaus Thiemann
Chairman of the Supervisory Board, Düsseldorf
(since June 7, 2006, Chairman since July 6, 2006)
Kristina Krüger
Vice Chairwoman, Itzehoe
(since June 23, 2006, Vice Chair since July 6, 2006)
Dr. Thomas Adler
Tax Advisor, Hamburg (since June 7, 2006)
Hans-Jürgen Beck
Businessman, Hamburg (since June 7, 2006)
Prof. Knut Foeckler
Media Consultant, Munich (since June 7, 2006)
Thomas Hoffmann
Businessman, Itzehoe (since June 7, 2006)
Mario Bethune-Steck
Employees’ Representative, Bargteheide
(since June 23, 2006)
T. Hartmann
A. Plate H. Soltau
Sven Heyrowsky
Board (Chief Media Officer/CMO)
Henning Soltau
Board (Chief Finance Officer/CFO)
Ursula Harjes-Loock
Employees’ Representative, Hagen
(since June 23, 2006)
Jürgen König
Employees’ Representative, Gablingen
(since June 23, 2006)
Andreas Klebe
Businessman, Hannover (since June 7, 2006)
Ulrich Beiderwieden
Resigned
Trade Union Representative ver.di, Berlin
(from June 23, 2006 to March 31, 2008)
Karlheinz Vernet Kosik
Trade Union Representative DPVKom, Hennef
(since June 23, 2006)

corporate governance
D+S europe AG remained committed to high standards of corporate governance in the course
of the 2007 financial year and continued to pursue an open information policy toward its
shareholders and the capital market that went beyond legal requirements. The Management
Board and Supervisory Board worked together closely in a spirit of mutual trust, a fact reflected
in the number of meetings of the Supervisory Board which were held with considerably greater
frequency than is legally required. The flow of information between the management and the
Supervisory Board functioned smoothly.
D+S europe AG’s reporting revealed a high level of transparency, in particular when presenting
the individual measures and effects in view of the details regarding the acquisition of the
Heycom Group as well as the related financing measures.
On this note, D+S europe AG welcomes the recommendations of the governmental Commission
of Corporate Governance and the introduction of the German Corporate Governance
Code (“GCGC”) in the year 2002. At the same time, Management and the Supervisory Board
complied with the government’s intentions by carrying out a thorough and critical examination
for the last time in December 2007, to determine the extent to which they are to comply with
the GCGC recommendations and suggestions. As a result of this examination, Management and
Supervisory Board of D+S europe AG have further developed their own Corporate Governance
Code. This code to a great extent includes the recommendations and suggestions of the GCGC
in its latest version of June 14, 2007 and reflects the concrete needs of D+S europe AG. The
update of our corporate governance code was adopted by the company’s decision-making
bodies in the form of separate resolutions. In addition, the members of the Supervisory Board
appointed in the 2006 business year, also submitted statements to the company to the effect
that they will comply with the most current version of the GCGC and act accordingly. A permanent
officer was appointed to assume responsibility for internally controlling corporate governance
issues. The company’s Corporate Governance Code is also permanently available to the
public on our website (www.dseurope.ag).
In December 2006, D+S europe AG also issued a statement of compliance with the GCGC as
called for by § 161 of the German Stock Corporation Act which is also permanently available
to the public at www.dseurope.ag. Concerning the contents the company’s Corporate Governance
Code follows all currently valid recommendations of the GCGC except for the two deviations
that are named in the compliance statement.
D+S europe AG intends to continue observing the conditions of our Corporate Governance
Code in the course of the financial year 2008.
CoRpoRate goveRnanCe
9

10 CoRpoRate goveRnanCe
ComplianCe statement By the management BoaRd and the
supeRvisoRy BoaRd
When issuing the last compliance statement in December 2006 the Code version of June
12, 2006 was applicable as announced in the electronic Federal Bulletin on July 24, 2006.
On July 20, 2007 the amended Code version of June 14, 2007 was published in the electronic
Federal Bulletin.
Management Board and Supervisory Board of D+S europe AG declare that the recommendations
laid down by the governmental commission German Corporate Governance Code
(“GCGC”) and published by the Federal Ministry of Justice in the official part of the electronic
Federal Bulletin on November 26, 2002 in their version of July 24, 2006 from June 12, 2006
as well as in their version of July 20, 2007 from June 14, 2007 have been met with the following
reservations:
• Item 3.8 of the GCGC recommends agreeing on a suitable deductible in liability insurances
by companies for Management and Supervisory Board members (so-called D&O insurances).
D+S europe AG is not of the opinion that including such a deductible would improve the
performance, motivation or sense of responsibility of its directors and officers.
• Item 5.3.3 of the GCGC recommends the introduction of a nomination committee. D+S
europe AG is of the opinion that the costs pertaining the introduction of such a committee,
in particular remuneration appointed members would be entitled to statutorily, are not in
due proportion with the gain in effective preparation of resolutions adherent to the intro-
duction of this committee.
Management Board and Supervisory Board of D+S europe AG also declare that the recommendations
laid down by the governmental commission German Corporate Governance Code
and published by the Federal Ministry of Justice in the electronic Federal Bulletin on November
26, 2002 in their version announced on July 20, 2007 from June 14, 2007 shall be met with
the same reservations.
Hamburg, December 2007
Achim Plate Klaus Thiemann
Chairman of Board (CEO) Chairman of the Supervisory Board
D+S europe AG D+S europe AG

eport of the supervisory board
supeRvision of management
On the one hand, the past business year 2007 was decisively marked by the strategically
significant expansion of the Group by the acquisition of the Heycom Group, and on the other
hand, by strong organic growth in the existing business units. Due to its strong organic and
anorganic growth the D+S europe Group engaged in the optimization of all relevant processes
and procedures supported by a renowned consultancy. The Supervisory Board accompanied
these processes by actively consulting and discussing them. In the year under review the
Supervisory Board exercised its legal and statutory functions and continuously supervised
Management on the basis of management reports and joint meetings. The Supervisory Board
reviewed all business that required approval and discussed it with the Management Board.
memBeRs of the supeRvisoRy BoaRd
In the business year 2007 the Supervisory Board which, as ruled by the Co-determination Act,
is composed at parity of six shareholders’ representatives and six employees’ representatives,
consisted of the following members: (I) Mr Klaus Thiemann (Chairman of the Supervisory
Board), (II) Ms Kristina Krüger (Vice Chairwoman of the Supervisory Board), (III) Dr. Thomas
Adler, (IV) Mr Hans-Jürgen Beck, (V) Prof. Knut Foeckler, (VI) Mr Thomas Hoffmann, (VII)
Mr Mario Bethune-Steck, (VIII) Ms Ursula Harjes-Loock, (IX) Mr Jürgen König, (X) Mr Andreas
Klebe (as of June 7, 2007), (XI) Mr Ulrich Beiderwieden, (XII) Mr Karlheinz Vernet Kosik.
meetings of the supeRvisoRy BoaRd
At five regular meetings – on January 22, March 23, June 7, September 14 and November 26,
2007 – the Supervisory Board was informed in detail and directly on the current development
of revenues, earnings and liquidity, budget planning, the state of the company and the Group
including the risk situation and risk management as well as corporate compliance, strategic
goals as well as all organizational and personnel changes. The Supervisory Board discussed the
organization of the company and the enterprise with the Board, assured itself of the performance
of this organization and its risk management and debated major strategic and business
matters. Management reported to the Supervisory Board in several Supervisory Board meetings
on the state of individual business units or segments, the economic, financial and strategic
situation of the company as well as on essential developments (such as the acquisition of the
Heycom Group or the establishment of the new communication center location on Rügen), the
growth strategy of the Group and planned capital measures.
Moreover, in compliance with the guidelines laid down by the Supervisory Board, Management
provided the chairman of the Supervisory Board with monthly reports and the entire Supervisory
Board at its regular meetings with detailed reports on crucial business events concerning
the Group by supplying financial data (in each case as a comparison with the budget and the
previous year). The Chairman of the Supervisory Board also remained in close contact with
Management Board which kept him comprehensively informed about current business activities.
An essential topic of the Supervisory Board meetings in 2007 was the acquisition of the
Heycom Group by the company. The Supervisory Board was updated by Management and the
RepoRt of the supeRvisoRy BoaRd
11

12 RepoRt of the supeRvisoRy BoaRd
company’s legal advisers on the state of the negotiations and the results of the due dili gence
audits; they inquired about the matter, extensively discussed the planned extension of the
Management Board in the course of the acquisition, provided Management with recommendations
on the further course of action, and continuously and comprehensively agreed on procedures,
and made the necessary decisions, after considering all the information available at
the time and all foreseeable consequences, in particular the advantages and disadvantages for
the company as well as impacts on it, its assets, financial and earnings situation and for its
stakeholders. In the course of the Heycom Group acquisition, a transaction significant for the
further development of the Group, the Supervisory Board resolved to approve an increase in
nominal capital by about 10% through issuance of 3,500,000 new shares against contribution
in kind under exclusion of subscription rights for shareholders, after extensive discussion and
assessment of existing interests, especially in consideration of the interests of the shareholders
who were excluded from subscription rights.
Moreover, in the 2007 business year the Supervisory Board dealt with the consultancy contract
between the company and the Supervisory Board member Hans-Jürgen Beck and approved
it after in-depth discussions. They also dealt with Management matters, especially the new
appointments of Mr Sven Heyrowsky and Mr Henning Soltau as members of the Management
Board as well as the reappointment of Mr Tobias Hartmann; they discussed the annual financial
statements, the consolidated financial statements and the management report for December
31, 2006 in the presence of the auditor, and obtained comprehensive information on strategy
and planning including the budget for 2008 at their meeting of November 26, 2007.
The Supervisory Board members Mr Klaus Thiemann (Chairman of the Supervisory Board),
Dr. Thomas Adler, Prof. Knut Foeckler, Mr Thomas Hoffmann, Mr Mario Bethune-Steck, Mr
Jürgen König as well as Ms Kristina Krüger attended all meetings of the Supervisory Board held
in the 2006 business year. The members Mr Hans-Jürgen Beck, Mr Ulrich Beiderwieden, Mr
Karlheinz Vernet Kosik and Ms Ursula Harjes-Loock missed one meeting each and were excused.
The Supervisory Board member Mr Andreas Klebe attended the remaining three meetings after
being appointed Supervisory Board member on June 7, 2007.
Committees
The Supervisory Board again set up two standing committees from its members, (I) the Main
and Audit Committee, consisting of Mr Klaus Thiemann, Thomas Hoffmann and Mario
Bethune-Steck in business year 2007, as well as (II) the Conciliation Committee established
in accordance with Article 27 section 3 of the Co-determination Act, consisting of Ms Kristina
Krüger, Ms Ursula Harjes-Loock, Mr Klaus Thiemann and Mr Thomas Hoffmann. In the business
year 2007 the Main and Audit Committee had its regular meeting on September 14, 2007 and
also conferred in telephone conferences on March 15, October 4, November 2 and December
3. In the 2007 business year there was no need for the Conciliation Committee to meet.
The Main and Audit Committee advised the Supervisory Board on Management matters, on
the establishment of the annual financial statements of D+S europe AG and on the approval
of the consolidated financial statements as well as on questions with regard to the acquisition
of interests in other companies, and it prepared recommendations for resolutions for the
Supervisory Board. The tasks of the Main and Audit Committee comprised the preparation of
employment contract prolongations for the members of the Management Board Achim Plate,
Tobias Hartmann as well as negotiations for the contracts of the new Management Board
members Sven Heyrowsky and Henning Soltau. Furthermore, the Main and Audit Committee
advised the Supervisory Board on the acquisition of the interests in Heycom GmbH, Garbsen,
heycom e-logistics GmbH, Garbsen, ASP Software GmbH, Salzburg, Adamicus GmbH,
Munich, as well as the acquisition of a limited number of shares in Intershop AG, Jena.

CoRpoRate goveRnanCe
Information on aspects of Corporate Governance concerning the Supervisory Board is provided
in the joint report of the Board and the Supervisory Board as part of this annual report.
Remuneration of the Supervisory Board members is shown in the Notes on the Consolidated
Financial Statement as part of this annual report, individualized and broken down into its
components. Conflicts of interest among the Supervisory Board members did not occur. In
the business year 2007, in compliance with the requirements of the German Corporate Governance
Code, the Supervisory Board also carried out an efficiency check of the Super visory
Board transactions including the evaluation of comprehensive questionnaires and subsequent
intensive discussions on the results. Moreover, Management and Supervisory Board made the
annual compliance statement to the German Corporate Governance Code in December 2007.
aCCounting
Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft, Hamburg, were chosen as the
company’s independent auditors at the Annual General Meeting and appointed by the Supervisory
Board. The Supervisory Board then negotiated the conditions for the audit, determined
the items for the audit and authorized the audit. The company’s independent auditors
examined the financial statements and the consolidated financial statement of D+S europe AG
for the year ending December 31, 2007 as well as the Management’s report on the company
and the Group and the corresponding accounts and applied an unrestricted audit certificate.
Moreover, the auditors examined the company’s early-warning system required by German legislation
§ 317 Sect. 4 HGB and as a result concluded that the company’s management fulfilled
its obligations as specified in legislation on controls and transparency within companies at
operational and strategic levels.
On March 17, 2008 the Supervisory Board’s balance sheet meeting took place. Prior to the
meeting the corresponding documents and auditors’ reports as well as Management’s proposal
for the utilization of the balance sheet profits and all other drafts and meeting reports were
distributed to the members of the Supervisory Board. The auditor participated in the meeting,
reported on the audit and its results, and was available to answer questions or discuss the
documents.
The Supervisory Board was in agreement with the results of the audit carried out by the independent
auditor and, after its own examination, came to the conclusion that there were no
reservations to be made. At this balance sheet meeting held on March 17, 2008 it approved the
financial statements, the consolidated financial statements along with the Management’s
report on the company and the Group for the business year 2007. The annual financial statements
are thereby adopted (§ 172 Sentence 2 of the German Stock Corporation Act).
The Supervisory Board agreed to the proposal of the Management Board for the utilization
of the balance sheet profits.
The Supervisory Board would like to thank the company’s Management, all the company’s
employees and those of affiliated companies as well as the works councils for their great
commitment, their dedication in the interest of the enterprise and for the achievements accomplished
in the 2007 business year.
Hamburg, March 2008
The Supervisory Board
Klaus Thiemann
Chairman of the Supervisory Board
D+S europe AG
RepoRt of the supeRvisoRy BoaRd
13

14 d+s euRope’s shaRe
d+s europe’s share
• 46% price increase of d+s europe share in 2007
• d+s europe share clearly beats dax, sdax & tecdax in 2007
• market capitalization rises by 76% compared to 2006 to eur 462.5 million
• coverage basis extended to five research houses
by dresdner kleinWort & sal. oppenheim
histoRiCal data of d+s euRope shaRe
WKN: 533680
ISIN: DE0005336804
Code: DSJ
Market segment: Prime Standard
Trading centers: XETRA, Frankfurt, München, Stuttgart, Düsseldorf,
Hamburg, Hannover, Berlin
Index: SDAX
CDAX
Prime All Share
Prime Media Performance
Classic All Share
Designated Sponsors: Close Brothers Seydler AG Wertpapierhandelsbank,
Lang & Schwarz Wertpapierhandelsbank AG,
Sal. Oppenheim jr. & Cie. KGaA
First listing: May 23, 2000
monthly highs, lows and Closing pRiCes as well as tRade
volumes of the d+s euRope shaRe in the CouRse of 2007
million units
8
6
4
2
0
8.90
7.90
9.55
8.04
10.08
7.61
11.00
10.32
12.57
11.14
11.95
10.20
13.61
11.35
14.98
12.15
14.44
12.70
14.37
12.60
12.98
10.41
13.66
11.94
Jan Feb March Apr May Jun Jul Aug Sept Oct Nov Dec
trade volume highs and lows (closing prices) monthly closing price
EUR
16
12
8
4
0

1. gloBal stoCk maRket peRfoRmanCe 2007
In comparison with the previous year, stock market year 2007 was distinctly more volatile. At
the beginning most share markets saw a continuation of the positive market trend of the previous
year. Due to an elevated inflation level, above all caused by strongly increased food and
energy prices, and the accompanying increase interest rates in the Euro zone as well as in the
USA, the global economic growth in general and the US economic growth in particular slackened.
While US share price indicators still showed increases in the first half year, the second
half saw intensified volatility and a clear share price correction due to the aggravating crisis of
the mortgage market. All in all, the US stock exchanges traded sideways in 2007. In Germany,
on the other hand, the DAX showed strong stock price gains until July and a short-lived all-time
high – also aided by continuing low indexes in the historic comparison. As opposed to the US
stock exchanges, the DAX was able to maintain its positive share price throughout the rest of
the year in spite of the weak US price lead and the gradually noticeable impact of the subprime
crisis. As of December 28, 2007, DAX closed with 8,067 points in XETRA. Thus in 2007, the
German “Blue Chip” share price indicator achieved a price rise of 22% compared to the previous
year level.
2. d+s euRope shaRe against RefeRenCe indeXes 2007
All in all, in 2007 the trend of the D+S europe share was highly welcome: After a rather restrained
start of the year which, based on the daily closing rates, was marked by the annual low
of EUR 7.61 on March 5, 2007, in the following weeks and months the share soared to reach
its annual high of EUR 14.98 on the basis of daily closing rates on August 9, 2007 due to the
announcement and implementation of the Heycom acquisition and the notification of a new
turnover and earnings record for the 2006 business year. Not even the notification of a strong
third quarter of 2007 with an increase in EBIT of 125% compared to the previous year could
prevent a reduction of the price markup towards the end of the year on account of increased
profit taking. The year-end price on December 28, 2007 stood at EUR 12.33. Compared to
the previous year value the D+S europe share showed a fat gain of 46%. With this advance in
prices, D+S europe’s share belonged to the SDAX top group and ranked seventh with regard
to the share price development in 2007.
In comparison with its reference indexes, D+S europe’s share saw a distinct out performance
(+46%) in 2007: The D+S europe share clearly outdid Prime Media Performance (-16%), SDAX
(-7%), Classic All Share (+6%), Prime All Share (+20%), CDAX (+20%).
In 2007 D+S europe share also fared better than DAX (+22%) and TecDAX (+30%):
peRfoRmanCe of d+s euRope in 2007 (in peRCent)
%
180
160
140
120
100
80
Jan Feb March Apr May Jun Jul Aug Sep Oct Nov Dec
D+S europe share DAX SDAX TecDAX
d+s euRope’s shaRe
peRfoRmanCe of d+s
euRope shaRe and its
RefeRenCe indeXes
-20 % 0 % 20 % 40 % 60 %
D+S europe share
CDAX
(Performance)
Prime All Share
(Performance)
“ dax asserts gains
With share price
rise of 22%”
“ d+s share
gains 46%”
Classic All Share
(Performance)
SDAX
Prime Media
Performance
15

16 d+s euRope’s shaRe
3. indeXes 2007 against 2006
As in the past years D+S europe AG also applied its own share as currency for its acquisition
strategy in 2007. In the course of financing the Heycom acquisition several equity measures
were implemented: Thus at the end of March 2007 a successful capital increase in cash by
1,642,000 shares was carried out, authorized by the Annual General Meeting of June 7, 2006.
A further capital increase in cash by 350,000 shares took place in June 2007. Moreover, at
the end of June 2007, a capital increase in kind by 3,500,000 shares was executed. Another
900,000 shares were issued to TOCOS Beteiligung GmbH against cash. TOCOS is the investment
company of Mr Detlev Meyer, a successful textile entrepreneur (Cecil, Street One) and
strategic investor. With his experience in the fashion industry he will support D+S europe AG
with regard to implementing its e-commerce strategy.
The number of shares was increased by another 48,148 shares in the course of an earnout
agreement from a former takeover at the end of September. The number of shares in circulation
at the end of 2007 thus rose from 31,071,099 in the previous year to 37,511,247 (+21%).
Mainly driven by the strong trend in share prices as well as to a smaller extent by an increase in
the number of shares, the rise in market capitalization continued as in the years before. At the
end of 2007 it amounted to EUR 462.5 million, thus exceeding the previous year figure by 76%.
Hand in hand with the rise in share prices, the D+S europe share trade also increased significantly.
In 2007 over 440,000 D+S europe shares were traded on average per day across all
trading centers. Against the comparable figure of 144,000 shares a year before this represents
an increase of 206%. Thus the share of D+S europe AG is among the top group in SDAX in
view of its liquidity. Due to strongly enhanced liquidity and increased market capitalization the
D+S europe share is moving closer to the acceptance criteria for MDAX. At the end of December
2007 the D+S europe share achieved rankings 64 and 67 with regard to MDAX criteria and
market capitalization. In order to be accepted to MDAX, placement among the 60 best enterprises
based these two criteria is required.
numBeR of d+s euRope shaRes
million units
50
40
30
20
10
0
2005
2006 2007
4. investoR Relations aCtivities
maRket Capitalization
million EUR
Investor relations (IR) are of major importance to D+S europe AG in order to provide transparent
communication on corporate policy and trust in and integrity for the D+S europe share.
In order to maintain existing investors and attract new ones numerous road shows, analyst
conferences and individual talks were carried out in 2007. In view of the further development
of D+S europe AG’s business model by acquiring the Heycom Group, IR activities were intensified
to ensure that investors were kept up-to-date in detailed and understandably on this
strategic step.
Altogether D+S europe AG road shows took place in the following countries: Austria, Belgium,
Denmark, Germany, Great Britain, France, The Netherlands, Switzerland and the USA.
As in previous years, D+S europe AG also exhibited at the Small & Mid Cap Conference in
Frankfurt in April 2007 and at the German Equity Forum in November 2007.
500
400
300
200
100
0
2005
2006 2007
eaRnings peR shaRe
million EUR
0.6
0.4
0.2
“ tocos beteiligung
0
neW strategic
investor”
“ d+s, top performer
in sdax”
2005
2006 2007

Moreover, D+S europe AG publishes detailed information regarding its share and the company’s
business results on its website under “Investor Relations”. Thus all annual and quarterly reports
can be accessed. Furthermore, the investor relations link provides essential key figures on D+S
europe AG, its shareholder structure, its annual general meeting, on the calendar and observance
of the Corporate Governance Code. The heading “News” provides current corporate news.
And a newsletter can be subscribed to free of charge.
5. shaReholdeR stRuCtuRe on deCemBeR 31, 2007
Management of D+S europe AG held an interest of almost 14% of D+S europe’s shares as of
December 31, 2007. The next largest shareholder was AvW Management-Beteilungs AG which
informed D+S europe AG that its proportion of voting rights in D+S europe AG had exceeded
the 5% threshold, reaching 5.15% on June 24, 2005.
Deutsche Bank AG informed D+S europe AG that the proportion of voting rights in D+S europe
AG of its subsidiary, DWS Investment GmbH, had exceeded the 5% threshold, reaching 5.47%
on April 12, 2007.
JPMorgan Chase & Co. informed D+S europe AG that its proportion of voting rights in D+S
europe AG fell short of the 5% threshold, reaching 4.96% on October 24, 2007.
TOCOS Beteiligung GmbH informed D+S europe AG that its proportion of voting rights in D+S
europe AG had exceeded the 3% threshold, reaching 4.10% on July 30, 2007.
Pictet Asset Management Limited informed D+S europe AG that its proportion of voting rights
in D+S europe AG had exceeded the 3% threshold, reaching 3.19% on June 1, 2007.
The remaining free float amounted to about 45% on December 31, 2007.
AvW Management-Beteiligung AG: 5.15%
Remaining free float: ca. 45%
Institutional investors < 3%: ca. 18% each
6. analyst CoveRage
DWS Investment GmbH: 5.47%
TOCOS Beteiligung GmbH: 4.10%
JP Morgan Chase & Co: 4.96%
PICTET Asset Management: 3.19%
Management: 13.81%
In the 2007 business year the coverage basis of the D+S europe share was extended by two
renowned research addresses: After acceptance of coverage by Sal. Oppenheim in March 2007
and by Dresdner Kleinwort in September 2007 five analyst companies now attend to the
D+S europe share. All five analysts evaluate the D+S europe share at “buy” grade. The price
objective for the D+S europe share was quoted at EUR 17 by the end of 2007.
An analyst history on recommendations and price objectives can be found on our website
under the caption “Investor Relations” > “Our Share” > “Research”.
Date Institute Analyst Rating Price Objective
EUR
09/11/2007 SES Research Jochen Reichert buy 19.00
13/11/2007 Berenberg Bank Thomas Wissler buy 17.00
13/11/2007 Dresdner Kleinwort Andy Hamer buy 18.40
16/11/2007 Sal. Oppenheim Wolfgang Specht buy 14.00
19/11/2007 West LB Michael Tappeiner buy 16.60
d+s euRope’s shaRe
“ 14% of d+s shares
held by management”
“ coverage extended
by tWo renoWned
research
addresses”
17

18 positioning and stRategy
customer excellence ...
our strategy
“ making brand equity in e-commerce and in service a true experience and increasing customer value
on the basis of high satisfaction – that is the core of our ’customer excellence’ strategy.”
Dipl.-Ing. Achim Plate, Chairman of the Board of D+S europe AG
d+s e-commerce & fulfillment services
With our integrated service model for e-commerce, we enable our clients, in particular merchandizers, to
completely outsource their Internet-based sales. Leading brand manufacturers from the textile and clothing
industry as well as enterprises from the food industry and the field of household articles make use of our
subsidiary Heycom’s highly productive online shops, its fulfillment warehouse and its groundbreaking management
of goods. In 2008 we expect private customers to buy about 45 million articles via the online shops
we are operating.
d+s mobile & telephony services
We are the link between private customers and enterprises. Via Internet online shops which we operate for
our clients. By telephone via the Intelligent Network of our dtms which will presumably transmit about 300
million service number calls in connection with value-added services in 2008. And in mobile communication
and transaction management via our mobileview platform which will transmit approximately 130 million
SMS, MMS and chats in 2008.
d+s communication & collection services
In our mostly TÜV-certified service centers we make more than 40 million direct phone calls with customers
every year and process the email and mail correspondence of our clients’ private customers. In this field we
apply our award-winning voice portals which we will use in 2008 to make about 10 million fully or partly
automated telephonic customer contacts. Our D+S address provides our clients with over 30 million German
mailing addresses with numerous selection features. We also make more than ten million bookings for our
clients every year, offering private customers various classical and electronic methods of payment. Our billing
services are complemented by innovative debt management which involves multi-media contact channels
and can be contained in customer service.

… for the challenges
of tomorroW
Digital customer relationships in connection with management of digitally initiated transactions,
that’s our challenge – customer excellence in e-commerce and customer contact management,
that’s our answer. With our integrated approach of “Connection – Commerce – Communication
& Collection” we create satisfied private customers and optimize the ratio between
our clients’ investments in customer relationship and the added value from this relationship.
Full Service E-Commerce
D+S e-commerce &
fulfillment services
• Online Shop Design & Consulting
• Content Management
• Warehousing & Fulfillment
• Return & Debitor Management
• Online Marketing
• CRM & Data Mining
Customer Contact Management
D+S mobile &
telephony services
• Service Call Numbers
• Intelligent Network
(NGN) & Routing
Concepts
• SMS/MMS Services
• Mobile Content
• Billing (SNR & mobile)
D+S communication &
collection services
• Communication Centers
• Dialog Automation
• Address Management
• Payment Solutions
• Collection Services
In the course of our growth strategy initiated in mid-2004, we have combined many different
competencies which enable us to serve the basic requirements for multi-channel transactions as
“the customer excellence group” under the umbrella of D+S europe AG.
The link between all parts of the Group is our joint mission of “customer excellence”. We regard
our private customer services as the basis for sustainable customer retention and create outstanding
sales results. For this reason all operative activities of our Group are designed to fulfill
private customers’ concrete and emotional key expectations, whenever and wherever they make
contact with the enterprise.
We continuously strive to provide our clients with ever more personalized and more dynamic
offers. Perfect satisfaction of private customers with the highest possible added value – that
is what we aim at. Thus we guarantee to our clients long-term customer loyalty and optimized
cost structures, efficient new customer acquisition and, consequently, an increase in
customer lifetime value. Because our clients’ success is our success.
19

20
d+s e-commerce & fulfillment services
only two
moRe nights.
then mum will get
heR jeans and i’ll
get my new summeR
dRess.
wondeR if paying is
just as easy?

sure! thanks to
logistics and
payment systems
from one provider:
d+s europe.
21

22 d+s e-CommeRCe & fulfillment seRviCes
our solutions ...
online-shops
We provide our clients with top quality online
shops, their operation based on our own
software consistently improved in a period
of meanwhile over 50 man years. We design
first-class online shops along our clients’
design concepts and consult them as to
promotional aspects. With professional photos
we present the products from different
angles and with many blow-up examples.
In the selection and buying process for the
user we focus on comfort and convenience.
Behind the scenes, shops are directly linked
to our merchandise planning system.
online-marketing
We promote the success of online shops we
operate for our clients. We increase visitors’
frequency to our clients’ shops by means of
search engine marketing, affiliate marketing
as well as newsletter marketing. We record
and analyze customer behavior via pixel
tracking and continuously optimize the buying
process.
Warehousing and sorting
We use special warehouse concepts for
different classes of goods. Especially in
the fashion sector, we use special storage
concepts for hanging and folded apparel
according to type of material and product
mix depth. Our goods handling processes
are designed for maximum speed. As soon
as goods arrive, they are registered per
scan check and sorted and shelved in our
warehouse. Thus we achieve a time-tomarket
period of 72 hours on average.
We always have an eye on availability so
that goods which are not available disappear
from the shop range.
dispatch and return
management
’Speed sells’ is our philosophy. The faster
goods reach customers the more likely they
are to buy them. In the shops operated by
D+S, customers can have their orders delivered
by the transport contracter of their
choice. We ensure that 95% of orders are
delivered to the customer within 2 workdays.
In return manage ment we subject
returns to a multi-stage quality check and
immediately put them on sale in our shops
again.

… d+s e-commerce &
fulfillment services
We stimulate enthusiasm for online shopping
For years, online trading has recorded terrific growth rates. Trading companies gear themselves
to multi-channel sales and push into the Internet.
Whether fashion enterprises, manufacturers of household articles, wine dealers or shoe manufacturers
– we enable our clients to fully outsource their Internet sales. We take their goods on
commission, organizing the entire online sales process – from warehouse management and
provisioning in the shop via dispatch and return management to billing of sold goods.
With our comprehensive online shop solutions, which also comprise international customer
care, we address the global market and supply countries all over Europe.
The centerpiece of our e-commerce activities is our subsidiary Heycom, which – with over 1,200
employees conveniently located near Hanover – organizes and handles the entire online sales
process. Since its foundation in 1997, Heycom has specialized in the online trade for fashion
and clothing enterprises. In this field, extraordinary quality standards are applied with regard
to product mix depth and customers’ emotionality when buying fashion apparel. Thus an
infrastructure and processes were created that are designed for the particular depth of product
mix resulting from the diversity of fashion articles, colors and sizes.
Our clients’ success is directly correlated with our success, especially so because we trade goods
on commission. We do our utmost to make our clients’ online shops the most frequented and
sales-boosting ones. Here we are supported by our subsidiary Adamicus with its variety of solutions
for online performance marketing.
23

24
d+s mobile & telephony services
easy CheCk-in via
moBile phone. at
last, paRis again!
i’m glad they sent
me the sms on
vaCant seats.
wondeR how they
do it?

With our solutions for
fixed and mobile
telephony
We promote sales
and customer loyalty.
25

26 d+s moBile & telephony seRviCes
service call numbers
Service call numbers such as 0800, 0180
or 0900 are the access to tariff models
and value-added services in telephony.
Be it the free order hotline, televoting with
its uniform charge rates or the flexible
pricing of a phone call depending on the
service supplied, such as Technical Support.
Our Group portfolio comprises premium
call numbers, free phone numbers and
shared-cost numbers for Germany and
19 further European countries.
value-added services
In our Intelligent Network we transmit millions
of telephone calls for our clients, broadening
the possibilities of telephony. The beneficiaries
of this service are our clients and their
customers. Our NetworkACD, for example,
distributes even large call volumes flexibly
within entire companies with decentralized
structures. We can differentiate between
impatient re-diallers and premium customers
and forward them separately. We also offer
simple, customer-friendly conference and
payment solutions.
our solutions …
mobile solutions
We combine voice and data services. Thus
mobile phone customers of information
services benefit, for instance, from the fact
that after the announcement of a telephone
number, the complete contact data including
postal address is sent by SMS without
additional charges. Our straightforward solutions
enable air passengers to check into a
booked flight at the push of a few buttons.
Moreover, we provide mobile information,
chat and entertainment services as well as
WAP services and download offers with
links to over 60 mobile network operators
and service providers.
mobile marketing/crm
With mobile networks, selling becomes flexible
and individual. We make it possible to
offer free seats at attractive conditions and
at short notice to frequent fliers who fly
a certain air route regularly. We supply fan
clubs with club news under club branding
per MMS and SMS. And we build a bridge
from advertisements on potato chips bags
or yoghurt cups to interactive portals. With
these user-friendly solutions we create sales
success but also enthusiasm and sustainable
customer loyalty.

… d+s mobile & telephony services
We make clever multi-media connections
We connect private customers with enterprises, thereby covering all relevant multi-media
contact channels using Internet platforms and email as well as the traditional fax.
In our view, the most attractive and versatile possibility to create added value for private customers
and enterprises in digital customer contact management is clearly telephonic and mobile contact.
In contrast to other media we can considerably increase the potential of this contact channel with
our own technology in order to practice active customer value management with sophisticated
sales and service strategies. That’s why, with our subsidiaries dtms and mobile view, we have
established a homogenous platform for value-added services via fixed and mobile networks.
dtms, the experts for service call numbers and value-added services, is an established provider
for professional voice-portal solutions in the field of corporate customer dialog. With its own
Intelligent Network which transmits calls between customers and enterprises, dtms can provide
technical solutions such as call routing or conferencing as managed services, thus essentially
reducing costs for their clients. dtms converts the telephonic interface into a portal which can
supply various services of variable contents at flexible rates.
Operation of mobile entertainment, infotainment, data and content services is the specialty
of our subsidiary mobileview. Mobileview is one of the leading European wireless application
service providers (WASP). As “one-stop shop” with exclusive, highly up-to-date mobile content,
special payment solutions for SMS, WAP and Web services, mobileview provides for its clients
a wide range of intelligent “plug-and-play” applications for content, subscription, info, chat
services and individual solutions with international coverage.
27

28
d+s communication & collection services
fiRst my weB
ConneCtion was
speeded up.
then my ChaRge
Rate was suddenly
impRoved.
how do they
always know what
CustomeRs go foR?

ecause With the added-
value management
of d+s europe
We cultivate
customer relationships.
29

30 d+s CommuniCation & ColleCtion seRviCes
communication centers
Whether it’s for information on your energy
invoice, technical support for your DSL
installation or vehicle financing. The agents
of our communication centers are in multimedia
dialog with several million private
customers of enterprises from different
sectors. Modern technologies, partly selfdeveloped,
assist us in efficiently deploying
our personnel and serving private customers
individually, personally and according to
customer value.
content &
payment
Apart from dialog services, our sales and
service products comprise entire transactions.
We are the interface between enterprises
and customers for content in spoken
and digital form. Telephonic information
on tariffs is one example of spoken content.
Ringtone downloads or technical sketches
transmitted by email are digital contents.
Knowledge on millions of customer queries
is available to our agents in databases for
fast retrieval. Services supplied are settled
by means of classical and electronic payment,
just like buying e-commerce goods.
our solutions ...
dialog automation
We are the market leaders in dialog automation.
Our solutions enable private customers
to act quickly and economically:
from self-service travel information via
ticket reservations per voice-computer to
changing master data via voice entry. We
implement voice portals linked with databases
allowing interaction from private
customers to enterprises and vice versa.
address and collection
management
Content must be directed objectively; services
rendered must be paid for. These additional
services are handled by our address
and collection management. Thus we boost
our clients’ success with useful information,
for instance, on matters such as mail order
affinity, reading habits and buying power of
millions of private people in Germany.In the
field of collection we break new ground by
integrating collection of claims into the
service process and by increasing the efficiency
of the measures taken by using modern
media, for example, SMS reminders.

… d+s communication
& collection services
We execute and invoice exchange of content
Launched as a call center in 1984, our segment “D+S communication & collection services”
represents the origin of our Group – however, in a considerably improved form. The modern
service centers of our D+S communication center management GmbH with about 4,000
employees are technologically designed for multi-channel customer dialog and handling of
entire processes. We focus on the needs of private customers, making sure that they always
receive the services and performance they expect.
D+S solutions is responsible for our technologies, offering consulting, development, integration
and operational services from one source. It operates the largest European VoiceXML platform
which we apply in the field of dialog automation.
In the past years, we have established our address and collection management as complementary
services. Our D+S address GmbH is one of the largest German address proprietors. We
have over 20 million household addresses at our disposal with over 30 classifiable features
constantly enriched by information relevant to our clients. Our D+S inkasso GmbH is a joint
venture with „Real” Solution GmbH (49%), one of the largest group-independent collection
enterprises in Germany. Their business field is the judicial and extra-judicial collection arising
from e-commerce as well as from customer contact transactions. D+S europe AG distinguishes
itself from its competitors by paying special attention to individual customer characteristics
and possible future yield potentials resulting from a continuation of the customer relationship.
31

32 RepoRt of management
report of management
Business and Basic Conditions 34
Business Development 42
Property Situation 46
Financial Situation 48
Human Resources 51
Remuneration 51
Supplementary Statement 53
Risks 54
Forecast 70

“ Due to our broad positioning with three segments
which we established in the course of
the past two and a half years, we see ourselves
in a position largely independent from
economic fluctuations and stand for sound
growth.”
Dipl.-Ing. Achim Plate, Chairman of the Board of D+S europe AG
33

34 RepoRt of management business and basic conditions
Business development property situation
report of management
1 Business and BasiC Conditions
1.1 maRket
starting point germany – focus europe
With its comprehensive services for e-commerce and customer contact management
D+S europe AG generates over 90% of its Group turnover in Germany. From Germany
D+S europe AG already provides a total of 14 countries with its e-commerce services including
operation of international shops and Europe-wide delivery. D+S europe AG’s subsidiary
atms with its international service call numbers and value-added services covers 19 countries.
With the mobile solutions of its subsidiary mobileview D+S europe AG operates all over and
beyond Europe. D+S europe AG as holding company does not perform any operative activities.
d+s europe ag’s market
high degree of broadband and mobile radio coverage for private customers
According to a survey on structural data carried out by Research Group Wahlen Online in the
summer of 2007, already 64% of German adults used the Internet in the second quarter of
2007. (N) Onliner Atlas 2007 of the Initiative D21 and TNS Infratest, which scrutinized distribution
of the high-speed Internet, come to the same conclusion. Accordingly, in 2007 almost
60% of German online users surfed with broadband access. Compared to 2006 high-speed
access showed an increase of 12 percentage points within one year. At the same time, according
to the Federal Statistical Office, prices for Internet usage fell by 6.0% compared with the
previous year (status: September 2007). The mental barrier against using the Internet was thus
further reduced.
In 2007 in mobile telephony the usage barrier for private users also fell by an average of 2.5%
compared to 2006 due to a decline in prices. With an over-proportional growth of data services
the volume of daily mobile connection minutes in Germany rose by 30% from 155 million
in 2006 to 202 million in 2007 according to a vatm survey. At the same time, however, the
volume of fixed network connection minutes did not decrease, but remained at a high level and
increased from 660 million in the year 2006 to 682 million daily in 2007.
Mobile telephony is turning into an extension of the Internet. Numerous indicators suggest
that the Internet and mobile telephony will grow together quickly in the coming years. Thus in
October 2007 the Internet search machine operator Google entered the market with an operating
system for cell phones which was optimized for the mobile Web. The software supplier
Adobe, on the other hand, developed an application which for the first time enables mobile
terminals to display videos produced with flash programming common in the Internet. Mobile
campaigns also gain importance in the marketing mix of international brand manufacturers.
The simplest version – SMS and MMS campaigns – are already being widely used, as a survey
by Airwide Solutions showed in autumn 2007. Thus 28% of the 50 global brand manufacturers
interviewed had already initiated at least one SMS campaign and 18% said they had launched
one MMS campaign. Another prominent example for increasing significance of mobile offers
is the newspaper BILD-Zeitung. In order to push its own contents, to gain new target groups
and to hike up their online advertising revenue, it launched a new mobile portal in October 2007.
“ over 90% of
turnover at home”
“ tWo thirds of
germans are online”
“ data services in
mobile telephony
groW overproportionally”
“ mobile telephony
Will become extension
of internet”

Financial Situation Human Resources Remuneration Supplementary Statement
Risks Forecast
Requirements for successful e-commerce
Until a few years ago room for development of e-commerce was limited due to a shortage
in the medial development of households, i. e. private customers, as well as the related limited
functionality. Since about 2005 the described environment has radically changed so that
electronic trade has been able to take root after a long start-up phase. As an example take the
development of chargeable music downloads. Market researchers of Media Control counted
9.3 million chargeable music downloads in Germany in the third quarter of 2007. Compared
to the previous-year quarter this represents an increase of 37%.
On this basis online shopping is becoming increasingly popular with consumers. A survey
re presenting the German population carried out by TNS Emnid showed that shopping via
Internet is regarded as a “modern way of shopping”. This is what over two thirds of online
shoppers said about Internet offers and what more than half of the people interviewed (60%)
stated about the TV shopping portfolio. Research Group Wahlen asserted that already in 2007
66% of Internet users bought products and services via the Internet. The survey ACTA 2001-
2007 gives absolute figures according to which the number of online buyers in Germany rose
by 129% from 12.85 million in 2001 to 29.37 million in 2007. According to EuPD Research
E-Commerce 2007 these buyers buy 14 times on average per half-year.
The Internet as sales channel is gaining considerably in importance. An increasing part of the
population uses it to shop. For consumers the Internet means more variety – especially when
shopping – because unlike the stationary trade, which focuses on the choice of masses for
space and cost reasons and provides a strictly demand-oriented range of products, the Internet
is able to provide a much wider range on offer and to serve niche markets without any problems.
Online shops have the great advantage that they can make their goods available not
only to customers in one town or a restricted region but, for example, to a whole country or
even the whole continent.
Impressive growth forecasts for e-commerce
Numerous surveys and analyses agree on impressive growth forecasts for the German e-commerce
market of up to 27% by 2010. According to the Federal Association of German Mail
Order Traders (bvh), 44% of all orders with catalog companies were placed via mouseclick in
2006. This represents an increase of 35% compared to 2005.
According to the survey “European B2C E-Commerce: Spotlight on the UK, Germany and
France” by Emarketer from summer 2007 the European e-commerce market will triple its
turnover volume from EUR 106 billion in 2006 to almost EUR 323 billion by 2011. Germany
still has an enormous potential, which is shown by the fact stated in the same survey, that up
to now online buyers in Germany have generated less than half of the turnover British online
shoppers generate. A survey by Forrester Research forecasts that the annual per-capita turnover
of online shopping will rise by about 50% from an average of EUR 1,000 in 2006 to almost
EUR 1,500 in 2011.
“ E-commErcE
EstablishEd”
“ about 30 million
intErnEt buyErs in
gErmany”
“ grEatEr variEty
in thE intErnEt”
“ 27% incrEasE
by 2010”
“ 2006 to 2011:
tripling of
E-commErcE
turnovEr in EuropE
to Eur 323 billion”
35

36 report of management business and basic conditions
Business Development property Situation
The online business with fashion and clothing articles, a field in which Heycom has a particularly
strong position, is by far the largest and fastest growing driver in distance trading. This is
also reflected in the development of the mail-order trade. According to the Federal Association
of German Mail Order Traders (bvh), in 2006 already each fifth item of clothing was not purchased
in shops but delivered to customers so that they could try it on at home and then make
their buying decision. A survey by TNS-Infratest by order of bvh published in October 2007
found that the online goods turnover of clothing, textiles and shoes rose by almost 40% from
EUR 2.8 billion in 2006 to EUR 3.9 billion in 2007.
Measured by the number of transactions, fashion and clothing are the second most popular
group of merchandise in e-commerce according to the “E-Commerce 2007” survey by Europressedienst
Research (EuPR). 53% of all interviewed online shoppers order their clothes from
Internet traders compared to only 44.1% in the previous year. With regard to turnover in
Germany, textiles take up the top position in online trade with an order value of EUR 2.8 billion
in 2006 according to Network Electronic Business Traffic.
In line with the general business environment the trade industry shows a strong multi-channel
trend. Thus classical trading enterprises and brand manufacturers which have so far been domiciled
in stationary business are increasingly extending their sales to the Internet. The survey
“E-Commerce 2007” carried out by Europressedienst Research (EuPR) shows how important
this trend is. According to this survey, 77% of all traders interviewed want to further expand
their sales in the next 12 months. Half of them (50.6%) intend to use the Internet only, 4.2%
are building on extending their offline sales. About one fifth (22.2%) plan to invest in online
as well as offline sales.
Strong development with e-commerce and customer contact management
The lesson is clear: E-commerce will show strong growth rates in the coming years. Due to the
communication behavior of private customers the Internet trade makes it necessary for enterprises
to provide a complete infrastructure for multi-media customer communication as well,
especially in the fields of telephony and mobile telephony. For this reason the boom in e-commerce
will continue to spur the growth of customer contact management.
Based on the assumption that over 400,000 people work in German service centers and assuming
that each agent has an average of 50 customer contacts, it can be concluded that in Germany
over 20 million non-automated multi-media customer transactions are handled each day, i. e.
over 7 billion transactions each year.
Against this backdrop, providers of consumer goods and services not only need corresponding
service structures in order to cope with these volumes, but they are also increasingly adjusting
to multi-channel sales. In the course of this development recent years have seen a growing
trend towards outsourcing because enterprises find it more and more difficult to represent
the required competencies internally with the due efficiency.
“ Online bOOm in the
fashiOn and clOthing
trade”
“ e­cOmmerce with
fashiOn takes up
tOp pOsitiOn”
“ trade adOpts
multi­channel
strategy”
“ e­cOmmerce
requires multimedia
structures”
“ Over 7 billiOn multimedia
transactiOns”
“ trend tOwards
OutsOurcing”

financial situation human Resources Remuneration supplementary statement
Risks forecast
new market for multi-media transactions
The private customer market is changing. A new generation of “digital customers” is deve -
l oping. They prefer multi-media transactions with companies and make intensive use of the
advantages of e-commerce. These so-called multi-channel customers buy, for instance, via
telephone or Internet, want to be advised of their delivery status via SMS and expect efficient
support in case of application problems, for example, by provision of instructions sent by
email. D+S europe AG expects this customer generation to take it for granted that, apart from
giving telephonic support, companies will be able to provide further information, e. g. via SMS
or MMS to their mobile phones or as WAPLink. Corres pondingly, in the face of increasing convergence
of the technical platforms fixed network, mobile network and Internet, D+S europe AG
is developing its solutions to integrative, multi-channel communication solutions in the professional
CRM application environment.
Enterprises, with traders leading the way, adapt to changing customer demands with multichannel
strategies and, with regard to this complex matter, they increasingly rely on special ist
service providers such as D+S europe AG. These providers, with their full-service range for
e-commerce and customer contact management, operate in overlapping submarkets. These
are essentially the market for e-commerce services from the operation of shops to fulfillment
and logistics, the market for mobile and fixed network-based telephonic value-added services
as well as the market for operative and technological communication center services including
complementary services such as address and collection management.
With its expanded position as full-service provider for e-commerce and customer contact
management D+S europe AG covers several growth areas. These individual segments can be
logically broken down on the basis of elementary basic related to the modern digital private
customer transaction business. These are:
1. Connection:
Setting up links between private customers and enterprises, in particular via fixed and
mobile networks, but also via email and Internet platforms.
2. Commerce:
Handling e-commerce processes: from operating online shops over sorting and warehousing
of goods to packaging, dispatch and return management.
3. Communication & Collection:
Provision of customer contact contents. This comprises sales and services which are supplied
either personally by customer agents in service centers or by automated voice- dialog
solutions. Moreover, it includes mobile contents and management of customer data. A
further complementary component is billing of delivered services and goods between companies
and their private customers, comprising general debtor management and classical
and multi-media payment solutions as well as billing of charges for service telephone calls
or SMS/MMS up to management of receivables and collection.
“ customers
go digital”
“ enterprises bank on
specialist services”
“ d+s europe ag
operates across
markets”
37

38 RepoRt of management business and basic conditions
Business development property situation
The total market addressed by D+S europe AG has an estimated current volume of EUR 11
billion p. a. within Germany only, EUR 6.5 billion of which stem from its existing market
for customer contact management without Heycom. The potential provisioning volume for
e-commerce services is valued at about EUR 4.5 billion. D+S europe AG’s market has an annual
growth rate in the two-figure percentage range. This strong market growth is caused by the
rapid spread of the high-speed Internet among private customers as well as the resulting scope
of applications and their connection to further media such as mobile radio.
The total market volume of EUR 11 billion in 2007 is made up of sub-volumes from the individual
markets for connection, commerce and communication & collection. From D+S europe AG’s
point of view, based on sources such as datamonitor, Deloitte and Forrester Research, the market
volumes of the individual segments are broken down as follows:
1. Connection:
In D+S europe AG’s opinion this market is mainly composed of fixed network-based value -
added services as well as mobile services. The German market for value-added services
has a volume of about EUR 2.3 billion and grows annually by 13% on average, which can
be mainly attributed to the increasing demand for service call numbers for customer
segmentation as well as on the general increase in customer interaction. D+S europe AG
currently rates the German market potential for wireless application providers (such as
mobileview) specialized in developing and operating mobile solutions in the field of mobile
CRM, mobile marketing and mobile entertainment at about EUR 600 million. In the next
years an annual growth potential of 25-30% is expected. The growth driver is the general
increase in the use of mobile services on account of a wider spread of UMTS, improved
multi-media terminals and the introduction of flat rates for mobile Internet access. This
leads to a strong increase in the demand for individual converging solutions for almost all
those enterprises which in the future intend to serve their customers not only via telephone
and Internet but also via mobile data services. Among these are many of D+S europe AG’s
existing clients.
2. Commerce:
The D+S europe AG’s market in this field has to be assessed with regard to the addressable
provisioning volume for full-service products in the area of online shopping.
D+S europe AG assumes a market volume of EUR 4.25 billion. The average annual growth
rate of 27% is high, which results from the previously described orientation of trade-based
enterprises towards multi-channel sales focused on the Internet.
3. Communication & Collection:
The focus of this sub-segment are customer services with a volume of EUR 2.3 billion and
an average annual growth rate of 17%. The essential driver here is the dramatically increasing
volume in multi-media customer contacts. In this context, companies generally show an
increasing trend towards outsourcing, because it enables them to better meet the demand
for cost efficiency combined with enhanced quality. Furthermore, the market for dialog
automation solutions with a market volume of EUR 130 million and an average annual
growth rate of 22% as well as the address management market with a volume of EUR 240
million and an annual average growth rate of 10% also belong to the content market.
Collection services with a volume of about EUR 1 billion are another relevant part of this
market segment. The collection market shows an average annual growth rate of 11%.
“ eur 11 billion of
market volume”
“ consideration of
individual markets”

Financial situation Human resources remuneration supplementary statement
risks Forecast
D+S europe AG cannot make a concrete estimation of the market volume for billing and
payment services due to its lack in transparency. In general D+S europe AG expects this
field to develop parallel with the overall growth of the e-commerce market.
1.2 Industry segment & PosItIonIng
the Competitive environment of d+s europe Ag
With its comprehensive positioning D+S europe AG covers the essential demand of companies,
when these outsource their e-commerce and customer contact management. D+S europe AG
thus covers several growth areas at the same time. Organizationally D+S europe AG is divided
into three similarly large segments: these are “D+S mobile & telephony services” (mobile services,
value-added telephony services), “D+S e-commerce und fulfillment services” (e-commerce
management), as well as “D+S communication & collection services” (customer dialog solutions,
address and collection services). With this all-embracing portfolio the D+S europe Group
is one of the few providers which are positioned in the market as full-range providers. Correspondingly,
D+S europe AG does not belong to one sector in particular. With regard to the
complexity of its overall portfolio within the Group, in Germany D+S europe AG can most likely
be compared with the arvato Group which is part of the Bertelsmann Group. D+S europe AG is
not aware of other German outsourcing providers with a similarly complex portfolio.
D+S europe AG’s competitive environment is strongly fragmented and has not yet reached the
final stage. The industry is in a process of continual change. In the field of “D+S mobile &
telephony services” (mobile services, value-added telephony services) D+S europe AG has
two of the leading providers for voice and data-based value-added services, dtms GmbH and
mobileview. With the exception of the ex-monopolist Telekom, D+S europe AG’s competitors
are mainly niche providers who basically focus on voice and data-based services.
In the field “D+S e-commerce und fulfillment services” (e-commerce management) in
D+S europe AG’s opinion the D+S subsidiary Heycom has only 3 or 4 competitors providing
a combination of shop operation and fulfillment in their service portfolios. Especially in the field
of the strongly specialized e-commerce management for fashion and textile companies, competition
for Heycom is even lower. The core competencies of other market participants positioned
as e-commerce providers are either logistics or e-commerce software not serving each of the
other fields.
The relevant competitive environment in the field of “D+S communication & collection services”
consists in roughly over 4,000 communication centers including inhouse communication
centers which do not present themselves as service providers. On the basis of “Call Center
Rankings” published by the trade journal “Call Center Profi” in June 2007, less than ten outsourcing
providers employ a staff of several thousand.
“ D+S europe AG’S
Action Scope
AcroSS SectorS”
“ StronGly
frAGmenteD mArket”
39

40 RepoRt of management business and basic conditions
Business development property situation
In the dynamical structure of the industry, various developments can be observed: Communication
center providers are extending their portfolios by the field of logistics, marketing
agencies are expanding in the area of communication center services, software producers
for e-commerce are trying to integrate fulfillment. From D+S europe AG’s point of view, a uniform
trend is not identifiable.
positioning of d+s europe ag
With its combination of e-commerce and customer contact management services D+S europe AG
has positioned itself as the outsourcing partner for large enterprises from almost all private
customer-oriented industries. D+S europe AG meets potential clients as a provider for complex
outsourcing of exacting quality standards with the claim “the customer excellence group”.
“customer excellence” means the fulfillment of one’s clients’ concrete and emotional key
expectations.
Ahead of the trend towards multi-channel orientation – a trend seen in trade enterprises as
well as other industries – D+S europe AG by its combination of e-commerce and customer
contact management services has positioned itself as one of the few outsourcing providers
which, with its comprehensive experience, can offer the entire process chain for modern multichannel
transaction management with private customers as a one-stop service.
Fashion companies so far domiciled in the stationary trade are one of the most strongly booming
segments in e-commerce. With its e-commerce subsidiary Heycom D+S europe AG has
acquired over ten years of experience in this young market and, with its full-service product
range, is one of the few providers to offer a convincing and truly successful solution in this field.
For companies that intend to establish Internet sales in the European market D+S europe AG
is an important potential partner. Within this group D+S europe AG, with a competency
unique in Germany, addresses those fashion companies that want to develop the Internet
as sales channel as efficiently as possible and without building up their own structures. It is
precisely these clients from the fashion industry that D+S europe AG provides with a complete
solution for online sales with D+S europe AG presenting itself as specialist for the development
and operation of online shops as well as for warehousing and dispatching of goods.
Moreover, D+S europe AG handles the complete complementary multi-media customer service
as well as billing and payment management for its clients. Apart from the fashion segment
D+S europe AG also serves other industries. Thus via its subsidiary Heycom it has also clients
in the fields of household articles and non-perishable foods.
“ industry in
dynamical
development phase”
“ commitment to
quality as
’the customer
excellence group’ ”
“ multi-channel
partner for almost
all private customer
industries”
“ established
solutions for
fashion industry
boom market”

Financial Situation Human Resources Remuneration Supplementary Statement
Risks Forecast
D+S europe AG’s company history of almost 25 years has its origin in the field of customer
contact management. D+S europe AG is known in this line of business as outsourcing partner
for almost all private customer-oriented industries. D+S europe AG has a particularly strong
position as service provider for enterprises from industries which traditionally do not depend
on the economic situation, such as energy suppliers, telecommunications, financial service
providers, public authorities and insurances. Its service portfolio in this field comprises technological
as well as content-related elements: from address management via mobile and fixed
network-based value-added services as well as communication center services up to payment
and collection.
D+S europe AG distinguishes itself in the market especially by focusing on outsourcing of
comprehensive processes comprising numerous elements of its entire value-added chain. In this
context its strategy of Integrated Customer-Value Management is gaining in importance. Here
multi-media sales channels and services depend on the individual customer value, guaranteeing
enterprises an optimum ratio between customer added value and service expenditure.
Apart from its market-leading overall positioning it is a component of D+S europe AG’s corporate
strategy to belong to the top-3 providers in the individual business units as well. This
way D+S europe AG ensures good market access for its integrated complete solutions as well as
for the modular products of its individual segments. In the segments of “D+S mobile & telephony
services” and “D+S communication & collection services” D+S europe AG has already reached
this position in the past. By incorporating the Heycom Group in 2007, the Group also succeeded
in reaching a top position in no time at all as service provider for e-commerce transactions
in the e-commerce sub-segment.
At Group level, D+S europe AG operates services for several thousand enterprises. The distribution
to the individual segments, however, differs significantly. In the segments “D+S communication
& collection services” as well as “D+S e-commerce & fulfillment services” D+S europe AG
services a total of about one hundred enterprises. In these segments D+S europe AG is one
of the few outsourcing providers which large clients believe have the technological and organizational
competency to establish structures for complex tasks with three-figure staff at short
notice. In the “D+S mobile & telephony services” segment D+S europe AG with dtms GmbH
and mobileview has a customer base of about 3,500 enterprises. The service portfolio in this
field starts with the provision of service call numbers ranging up to value-added services in the
Intelligent Network as well as mobile applications.
“ customer contact
management
For largely noncyclical
industries”
“ Future-orientation
by comprehensive
approach and
customer-value
management”
“ top-3 strategy in
sub-markets”
“ relationships with
over 3,500 clients”
41

42
RepoRt of management
2 Business development of the d+s euRope gRoup
At the close of the 2007 business year, the D+S europe AG Group had distinctly increased its
earnings in comparison with the previous year for the fifth time in succession. Group revenues
rose by EUR 66.7 million compared to a year before from EUR 164.8 million to EUR 231.5
million (+40.5%). With earnings before interest and taxes (EBIT) in the amount of EUR 32.7
million the comparable previous year figure was exceeded by EUR 13.7 million (+72.1%). The
reporting period was marked by strong organic growth but also by the initial consolidation of
the Heycom Group acquired on July 2, 2007. Without the effect from the Heycom transaction,
revenues amounted to EUR 198.4 million in 2007 corresponding to an increase of EUR 33.6
million or 20.4% compared to the previous year.
2.1 Revenues
Business and Basic Conditions
The following table shows a breakdown of revenues by segments:
2006
million EUR
2007
million EUR
Changes
%
D+S mobile & telephony services 81.6 86.8 6.4%
D+S e-commerce & fulfillment services * n.a. 33.2 n.a.
D+S communication & collection services ** 83.2 111.5 34.0%
total d+s europe ag group 164.8 231.5 40.5
* No previous year comparison, as segment was established on July 2, 2007 after the acquisition of the Heycom Group.
The 2007-figures refer to the period from July 2 to December 31, 2007.
** In 2006, this segment operated under the name of “customer management services”.
In the segment “D+S mobile & telephony services” multi-functional connections between private
customers and enterprises are set up on internal fixed and mobile network platforms with
variable rates depending on the service rendered. In 2007 this segment generated revenues
in the amount of EUR 86.8 million, thus increasing last-year’s revenues of EUR 81.6 million
by EUR 5.2 million (+6.4%). In 2007 the development of this segment mainly focused on
transaction-based value-added solutions with strong margins which increasingly flank volume
transactions with their lower margins and slimmer growth. The ample technological and
solutions-oriented knowhow in this segment contributed to the development of a series of
innovative products and services with strong margins especially in the field of solutions geared
towards customer value. This was also underpinned by the development of an e-payment solution
whose results will be stated in the segment “D+S communication & collection services”.
The positioning as leading quality provider in the field of value-added service as a consequence
of these developments has led to gradually rising margins in this segment. The qualitative shift
of revenues is also reflected in the development of turnover. Offsetting effects from the sale of
business development property situation
“ turnover increase
of 40.5% up to
eur 231.5 million”
“ innovative solu-
tions for customer
value management”

financial situation human Resources Remuneration supplementary statement Risks forecast
DGfA GmbH as part of this segment on the one hand, and initial full-year consolidation of
mobileview GmbH (previously mobileview AG) and the initial consolidation of 11899 Auskunft
Service GmbH in August 2007 on the other hand, resulted in a satisfactory development of
growth. At the end of 2007 management of this segment was complemented by sales experts
who have already given first impetus to the segment.
With its business unit “D+S e-commerce & fulfillment services”, established after the acquisition
of the Heycom Group on July 2, 2007, D+S europe AG operates integrated Internet sales from
online marketing and shop design up to warehousing, dispatch and return processes for its
clients mainly from the fashion industry with an average of 470 employees (as of Dec. 31, 2007).
In the period of consolidation (2nd half of 2007), revenues in this segment amounted to EUR
33.2 million. In this segment the D+S europe Group benefits from the increasing spread of fast
Internet accesses in all relevant European markets, in particular in Germany, as well as from
the significantly increasing acceptance of online shopping. As a consequence of this development,
revenues increased monthly in the period under review. Moreover, business relationships
have been extended to clients in other European countries. In this field it has paid off that
D+S europe AG established a strategic sales structure for this business unit. In the reporting
period the acceptance of a tender by an important new client whose project is to start in the
second quarter of 2008 was another success.
The “D+S communication & collection services” segment constituted the most important driver
of organic growth. With over 4,000 agents, the Group provides comprehensive outsourcing of
communication center services and also technologically advanced voice-portal solutions.
Furthermore, address and collection services and, since January 1, 2008, also organically established
e-payment services have been part of this segment. The D+S europe Group augmented
its 2007 revenues to EUR 111.5 million with previous-year revenues still standing at EUR 83.2
million. Organic growth thus amounts to EUR 28.3 million or +34.0%. All communication
center locations contributed to this development. A distinct turnover plus resulted from the new
location on Rügen established in 2007. Apart from the extension of existing orders, this growth
in sales is ascribed to new large contracts. In the field of address trading, especially so-called
opt-in address inventories, D+S europe AG took advantage of enriched databases with legally
indisputable documentation to acquire several large contracts.
2.2 eaRnings
As in previous years the clear increase in turnover was also reflected in earnings, once more
showing distinctly increased figures. In the past business year the establishment of the business
unit “D+S e-commerce & fulfillment services” led to one-off acquisition and integration expenses
in the amount of EUR 0.75 million, but in general had no effects on the long-term cost structures
of the D+S europe Group. The cost structures of a service provider with labor-intensive units on
the one hand, and highly scalable transaction platforms on the other hand, remained the same.
The item of variable personnel costs continues to be by far the most significant cost factor.
“ e-commerce
gaining ground”
“ neW payments
services to start
in 2008”
43

44
RepoRt of management
Business and Basic Conditions
The sustainable organic growth trend as well as the Heycom Group acquisition led to an
increase in the number of staff within the Group from 3,583 employees by closing date
Dec. 31, 2006 up to 4,962 employees as of Dec. 31, 2007 (+38.5%). Including temporary
workers D+S europe AG employed 5,930 people as of December 31, 2007. This is an increase
of 65% compared to the previous year (3,583) and equals a full time equivalent of 4,897
employees (PY 2,669). As a consequence, absolute personnel costs at Group level also rose
from EUR 65.5 million in 2006 auf EUR 87.8 million in the past business year (+EUR 22.3
million / +34.0%). The still flat staff hierarchies on the one hand, and consistent control of
deployment of staff utilizing online control tools such as Intraday Complete Control (ICC)
on the other hand, made personal costs rise sub-proportionally against the turnover development.
The personnel costs ratio fell from 39.7% in 2006 to 37.9% in the past business year.
Outlay for material and services received rose sub-proportionally against the development
of revenues. In the past business year they increased by EUR 9.4 million or 24.8% to EUR 47.3
million (PY: EUR 37.9 million). The material costs ratio fell from 23.0% in 2006 to 20.4% in
the past business year. This development was contributed to by scale effects as well as the
diversified service mix within the Group.
The cost ratio for other operational expenditure remained the same as in the previous year at 25%.
In the past business year the focus on business fields with strong margins, but also cost optimization
of the business processes, for instance due to the D+S excellence program launched in
2007, became more evident in the absolute total earnings as well as in margins. Earnings before
interest, taxes, depreciation and amortization (EBITDA) in an amount of EUR 47.3 million
represented an increase in earnings of over EUR 19.5 million compared to EBITDA of EUR 27.8
million (+70.1%) a year before.
In 2007, depreciation on fixed assets and intangible assets rose by EUR 5.9 million compared
to the previous year, reaching EUR 14.7 million. This rise in depreciation essentially resulted
from initial consolidation of the Heycom Group as well as from standard depreciation on
hidden reserves to be revealed in the course of the Heycom acquisition (so-called “Purchase
Price Allocation”) of about EUR 2.0 million for the six-month consolidation period.
Earnings before interest and taxes (EBIT) within the Group reached a record high of EUR 32.7
million. As in the year before, earnings of the past business year outperformed all previous
earnings in the history of D+S europe AG. The previous year EBIT in the amount of EUR 19.0
million was exceeded by EUR 13.7 million, i. e. 72.1%. The increase in earnings without the segment
“D+S e-commerce & fulfillment services” still totals about EUR 7.7 million or 41% confirming
the organic earning power of the D+S europe Group. As services focus on fields with
high qualita- tive and technological requirements, margins increased at a high level again. The
Group EBIT margin stood at 14.1% in the past business year (PY: 11.5%) exceeding the target
margin of 14%.
EBIT is allocated to the individual segments as described below:
In the past business year, the segment “D+S mobile & telephony services” generated an EBIT in
the amount of EUR 13.1 million thus exceeding the previous year’s EBIT of EUR 11.7 million by
EUR 1.4 million (+12.0%). Due to the growing significance of value-added solutions the EBIT
margin in this segment rose to 15.1%, i.e. by 0.8 percentage points compared to the previous year.
business development property situation
“ personnel
costs ratio doWn
to 37.9%”
“ ebitda rises
by 70.1% to
eur 47.3 million”
“ ebit rises by 72.1%
to eur 32.7 million”

financial situation human Resources Remuneration supplementary statement Risks forecast
EBIT of the segment “D+S e-commerce & fulfillment services”, for the first time stated in the
second half of 2007, amounted to EUR 6.0 million. Due to the high utilization of capacities and
furthered by the seasonally stronger second half year this segment achieved an EBIT margin
of 18.1%.
EBIT of the segment “D+S communication & collection services” amounted to EUR 13.5 million
in 2007. Compared to EUR 7.3 million achieved a year before, EBIT almost doubled, being tantamount
to a quantum leap. Burdens resulting from setting up the new location on Rügen were
more than offset by enhanced utilization of the other locations as well as new business in the
field of dialog automation and address trading. After achieving an EBIT margin of only 8.7%
in 2006, the past year showed a margin of 12.1%.
The increase in expenditure from the Group’s financial results balance was moderate compared
to a year before. Expenditure increased by EUR 1.5 million to EUR 7.4 million. This is the result
of offsetting effects: On the one hand, the Heycom acquisition led to a clear increase in the
financing volume, on the other hand improved credit rating of the D+S europe Group resulted
in more attractive terms for the newly concluded syndicated loan agreement.
The taxation ratio rose from 27.4% in 2006 to 42.1% (one-time) in 2007 which can also be
ascribed to one-off, non-cash effective expenditure in connection with the revaluation of losses
carried forward in the amount of EUR 1.85 million due to the corporate tax reform in 2008.
From 2008 onwards, D+S europe AG will benefit from lower company taxation. Tax expenses
absolute amounted to EUR 10.7 million (PY: EUR 3.6 million) in 2007.
In spite of increased tax expenditure, the clearly enhanced profitability is also reflected in the
Group’s annual surplus. In the period under review, annual surplus rose by EUR 4.9 million
compared to the previous year value of EUR 9.6 million, reaching EUR 14.5 million. Earnings
per share (EpS) amounted to EUR 0.42 (PY: EUR 0.32) due to the one-off tax effect and the
increase in nominal capital. Adjusted for the one-off tax effect and the one-time expenditure
in connection with the Heycom transaction amounting to about EUR 0.75 million, EpS totaled
EUR 0.49.
The earnings position of the Group is influenced by the following essential one-time effects:
• Gain of EUR 3.2 million from the sale of computer equipment which the company had
claimed from a defaulting third party;
• Proceeds from a waiving of a claim by a creditor (EUR 1.6 million);
• Proceeds collected from option premiums (EUR 3.0 million).
non-financial performance indicators
For rapid expansion of its business volume, the D+S europe Group continuously employs
qualified and competent personnel. Its entire human resource strategy is aimed at meeting
clients’ requirements in terms of quality and quantity and to live D+S europe AG’s corporate
culture together with the new colleagues. Executives and teams of D+S europe AG are qualified
through project-related and general training. At the same time D+S europe AG supports the
exchange of knowledge between experienced and new employees in workshops and by means
of a standardized e-learning platform. Organization, processes and structures are continuously
expanded and prepared for further growth at an early stage. The objective agreement and
bonus system in place enables a large number of employees to participate in the success of the
company through personal performance.
“ ebit margin of
18.1% in
e-commerce”
“ earnings per share
rises to 0.42 eur”
45

46
RepoRt of management
3 pRopeRty situation
The balance sheet total of the D+S europe Group increased in particular by initial consolidation
of the Heycom Group as well as the Group’s organic growth by EUR 214.9 million rising from
EUR 237.7 million to EUR 452.6 million compared to the previous year.
3.1 CuRRent assets
On balance sheet date, current assets of the D+S europe Group essentially consisted of current
claims, liquid assets and other short-term assets in the amount of EUR 143.1 million
(PY: EUR 95.4 million).
The increase in current assets of the D+S europe Group by EUR 47.7 million or 50.0% compared
to the value of December 31, 2006 results from an increase in trade receivables of EUR 17.1
million or 23.0% due to a distinct rise in net revenues of 40.5% compared to the previous year.
Another essential effect resulted from the increase in liquid assets and from securities held by
the D+S europe Group in the amount of EUR 20.2 million. The increase in other current assets
in the amount of EUR 4.6 million from EUR 11.1 million to EUR 15.7 million, essentially concerns
claims from granting of a subsidy in an amount of EUR 4.7 million as well as a claim of
a subsidiary against the revenue authorities in the amount of EUR 3.8 million.
3.2 non-CuRRent assets
On balance sheet date, stated fixed assets of the Group amounting to EUR 309.5 million
including deferred taxes were completely covered by shareholders’ equity and long-term
outside capital. As of December 31, 2007, assets ratio II, which shows to what extent assets
in the amount of EUR 299.0 million are financed by shareholders’ equity and long-term outside
capital totaling EUR 318.2 million, showed a value of 106.4% (PY: 133.9%).
The largest addition to Group assets concerned goodwill in the amount of EUR 112.6 million
gained in the course of the Heycom Group acquisition and resulted from the difference between
purchase price and equity. Further increases concerned additions to the item of intangible
assets from the purchase price allocation gained in the course of initial consolidation of the
Heycom Group. The purchase of software as well as client relationships resulted in an addition
in the amount of EUR 41.0 million. In the past business year, further investments in the field
of intangible assets focused on extension of address inventories in the segment “D+S consumer
information & collection services”.
3.3 CuRRent liaBilities
Business and Basic Conditions
As of December 31, 2007 current liabilities of the D+S europe Group in the amount of
EUR 134.4 million were covered by current assets to over 106.5% (PY:138.3%).
Current liabilities to financial institutions increased by EUR 5.6 million from EUR 14.7 million
to EUR 20.3 million as of December 31, 2007. This includes a short-term special drawing in
the course of syndicated financing in the amount of EUR 6.0 million which, if need be, can be
extended variably up to July 2012, as well as short-term components of long-term bank loans
in the amount of EUR 7.5 million to be redeemed in 2008.
Business development property situation
“ balance sheet total
increase of 30% to
eur 452.6 million”

financial situation human Resources Remuneration supplementary statement Risks forecast
The development of current liabilities, current financial liabilities and provisions was marked by
initial consolidation of the Heycom Group but also by expansion of the transaction volume of
the D+S europe Group. The increase of EUR 51.2 million in the items mentioned above, from
EUR 18.9 million to EUR 70.1 million, in particular results from earnings-related earn out obligations
in the amount of EUR 38.8 million, from a fixed purchase price liability in the course
of the acquisition of the Heycom Group in the amount of EUR 7.5 million and from leasing
liabilities in the amount of EUR 5.4 million.
3.4 non-CuRRent liaBilities
For information on non-current liabilities to credit institutions as well as bonds we refer to
“4 Financial Situation”.
Non-current liabilities also include deferred tax liabilities in the amount of EUR 14.9 million.
Basically, these had to be established due to assets reported for the first time which are to
be stated in the course of the acquisition of the Heycom Group as well as mobileview GmbH
(previously mobileview AG) through purchase price allocation.
3.5 shaReholdeRs’ equity
Shareholders’ equity of the D+S europe Group increased from EUR 105.8 million on December
31, 2006 to EUR 188.5 million on December 31, 2007, with the equity ratio amounting to
41.7 % (PY: 44.5%) at the end of the 2007 business year.
Capital increases executed in the 2007 business year were essential for the absolute increase in
shareholders’ equity. In the course of the past business year a total of 6.4 million shares were
issued, 3.5 million shares of which against contribution in kind and 2.9 million shares against
contribution in cash. These capital increases boosted D+S europe Group’s nominal capital by
EUR 7.2 million, reaching EUR 37.5 million. D+S europe Group’s capital reserves in accordance
with IAS/IFRS increased by EUR 68.9 million to EUR 126.1 million. We refer to the statement
on changes in shareholders’ equity.
On December 31, 2007, by far the largest individual shareholders were ASP Holding GmbH
with 10.0% of the shares and AvW Management Beteiligungs AG with 5.15% of the shares.
3.6 finanCial instRuments
In the field of financing, D+S europe AG is essentially exposed to financial risks from changes
in interest rates for borrowings with variable interest rates. D+S europe AG uses interest rate
swaps and interest rate caps as hedging instruments. D+S europe AG does not apply hedge
accounting as not all hedging transactions meet the required accounting standards in order to
be booked as hedging activities. The change in market value of hedging instruments is shown in
the financial results. Derivates are only concluded in connection with corresponding underlying
transactions and are not used for speculative purposes. As of balance sheet date nominal
values of the hedging instruments amounted to EUR 98.0 million and the corresponding time
values totaled EUR -0.2 million (= market value). Market value corresponds to the amount that
D+S europe AG would have had to pay or collect by balance sheet date assuming liquidation
of the hedging activities as of balance sheet date.
“ equity ratio
reaches 41.7%”
47

48
RepoRt of management
4 finanCial situation
4.1 finanCing of the d+s euRope gRoup
In 2007, D+S europe Group also successfully continued its growth strategy of the past years.
By acquiring the Heycom Group, D+S europe AG successfully concluded its largest acquisition
in the company history. Since July 2, 2007 D+S europe AG has owned 100% of the shares
in the Heycom Group which was initially consolidated with effect from July 2, 2007. As with
acquisitions in previous business years D+S europe AG relied on a mix of shareholders’ equity and
borrowed capital for purchasing the Heycom Group. For this purpose, its financial framework
for outside capital was considerably extended by concluding a new syndicated loan agreement
under lead management of Deutsche Bank AG and Dresdner Bank AG. Legally the Heycom
Group has been incorporated into the Group in such a way that earnings as well as liquidity
flows are assigned to the parent company as laid down in control and profit transfer agreements.
D+S europe AG assumes that along the lines of already implemented acquisitions a
positive effect will be achieved for earnings as well as for cash flow per share due to the financing
components for the Heycom Group acquisition described below.
4.2 shaReholdeRs’ equity
Business and Basic Conditions
An essential component of financing the acquisitions of the past business year was the issuance
of a total of 6.4 million of common bearer shares from authorized capital, of which 3.5 million
shares were issued against contributions for kind and 2.0 million shares against contributions
for cash to the alienators of the Heycom Group. Furthermore, in the 2007 business year,
TOCOS Beteiligungs GmbH, another important strategic investor was attracted, subscribing
to 0.9 million shares in the course of a capital increase for cash from authorized capital,
also increasing their participation to over 4% by means of additional purchases via the stock
exchange. TOCOS is the investment company of a successful textile entrepreneur who is
supporting D+S europe AG with his experience in the fashion industry in implementing its
e-commerce strategy.
By means of the capital increases described plus the entry of the contribution in kind of
mobileview AG effected in 2006 and carried out in the business year 2007, share capital of
D+S europe AG was stepped up by EUR 7.2 million to EUR 37.5 million and its capital reserve
by EUR 68.9 million to EUR 126.1 million.
The balance sheet total of EUR 452.6 million results in an equity ratio of 41.7% (PY: 44.5%).
Thus, as in the past business years, D+S europe AG showed a healthy balance sheet structure
on December 31, 2007.
With the new financing structure the D+S europe Group has the necessary financial resources
and reliable financing partners in order to continue its intended growth strategy, even after
meeting obligations arising from realized acquisitions or existing liabilities to banks.
Business development property situation
“ financing mix of
outside and equity”
“ capital stock up to
eur 37.5 million”

financial situation human Resources Remuneration supplementary statement Risks forecast
4.3 outside Capital
With regard to outside capital, D+S europe AG considerably extended its syndicated financing
scope in the course of financing the acquisition of the Heycom Group and for implementing
its growth strategy in the business year 2007. Due to its once again improved creditworthiness,
D+S europe AG succeeded in increasing its financing framework of outside capital by EUR 57.8
million to up to EUR 125.8 million. For this purpose, on March 23, 2007, a syndicated loan
agreement with a financing scope of EUR 125.8 million was signed under lead management of
Deutsche Bank AG and Dresdner Bank AG, of which EUR 118.8 million were utilized in several
tranches. The new term structure provides for repayment of liabilities by September 30, 2013.
As another financing measure in the course of financing its acquisitions, D+S europe AG issued
profit participation rights in the amount of EUR 11.0 million in 2006 expiring by December 30,
2013, in order to refinance a so-called mezzanine loan bearing a higher interest rate.
4.4 futuRe finanCing measuRes
In the past three business years, D+S europe AG made successful use of its stock market listing,
placing shares from capital increases on terms which proved attractive for the company due
to the rise in share price and the associated low dilution. As in previous years, the company is
planning to utilize its own share as acquisition currency for financing future growth measures.
If possible, it will take advantage of the constant upward trend of its share price for pricing purposes
and will offer its applicants as well as its shareholders an attractive environment, backed
up by intensive capital market communication. For financing further acquisitions, D+S europe
AG will probably make use of equity as well as outside capital. By means of this mixed form of
financing D+S europe AG, already disposing of a high equity ratio compared to its competitors,
can avoid stronger dilution with regard to earnings per share. Smaller acquisitions will be
financed from existing liquid assets as well as the expected positive future cash flow.
In January 2008, 85.2% of Adamicus GmbH was taken over. The purchase price amounts to
50,000 common bearer shares of D+S europe AG, which D+S europe AG purchased on the
stock market and financed from its cash flow, taking advantage of the currently feeble capital
market.
4.5 statements aCCoRding to aRt. 315 seCt. 4 hgB
(geRman CommeRCial Code)
On December 31, 2007, the subscribed capital of D+S europe AG consisted of 37,511,247
no-par common shares issued to the bearer (100.0% of subscribed capital). Rights and
obligations comply with the Stock Corporation Act. ASP Holding GmbH Salzburg/Austria
holds 10.04% of the shares in D+S europe AG; sole holder of ASP Holding GmbH is
Sven Heyrowsky.
“ credit rating With
banks further improved”
“ complementary
acquisitions from
positive cash floW”
49

50
RepoRt of management
Business and Basic Conditions
Appointment and release of members of the Board are regulated by law. In addition, according
to the Articles of Incorporation, the Supervisory Board determines the number of Board members.
The Supervisory Board can appoint a member of the Board to chair the Board. Subsidiary
Board members may be appointed. The Supervisory Board can resolve that individual Board
members are singly empowered to represent the company. Subsidiary Board members are
equal to full members of the Board with regard to their authority to act for the company. The
Supervisory Board can release individual Board members from the restrictions laid down in Art.
181 2nd Alt. of German Civil Code. Article 112 of Stock Corporation Act remains unaffected.
In view of amendments, the Articles of Incorporation are subject to legal regulation. In accordance
with the company’s Articles of Incorporation, changes to the Articles concerning the
wording can be made by the Supervisory Board.
Up to June 6, 2011 Management of the company, with the consent of the Supervisory Board, is
entitled to increase the company’s capital stock once or repeatedly by a total of EUR 7,403,883.00
through issuance of new bearer shares against contribution in cash or in kind. Shareholders
are to be granted subscription rights provided that the new shares are taken by a credit institute
under the condition that they are offered to shareholders for subscription.
Management, with the consent of the Supervisory Board, is entitled to exclude subscription
rights for shareholders once or repeatedly
a) if necessary to exclude possible fractional amounts from subscription rights,
b) if necessary to grant bearers of option or conversion rights, issued by the company, subscrip-
tion rights to new shares in the amount they would be entitled to after exercising their option
or conversion rights,
c) up to an arithmetical nominal value in the total amount of EUR 3,271,000.00 against con-
tribution in cash if the issue price of the new shares does not essentially fall short of the
market price of shares with identical features already listed, at the time of final determination
of the issue price,
d) up to an arithmetical value in the total amount of EUR 7,403,883.00 if the new shares are
issued against contribution in kind.
The Supervisory Board is entitled to adjust Art. 5.4 of the Articles of Incorporation in accordance
with the respective utilization of authorized capital.
D+S europe Group has loans and credit lines in the amount of EUR 125.8 million allowing
lenders to terminate the agreement in case a shareholder acquires more than 30% of the shares
of D+S europe AG. Furthermore, D+S europe AG disposes of EUR 11.0 million from issued
profit participation rights which can be cancelled by the holders of participation rights should
majority interest according to Art. 16 Stock Corporation Act or other control mechanisms
according to Art. 290 Sect. 2 German Commercial Code and an essential aggravation of the
company’s credit rating occur.
D+S europe AG and its subsidiary Heycom GmbH have concluded a framework contract with
one client, providing the right to terminate the agreement in case a competitor is able to exert
control over the transactions of Heycom GmbH due to participation in D+S europe AG.
Business development property situation

financial situation human resources remuneration supplementary statement Risks forecast
5 human ResouRCes
The growth of D+S europe AG in the business year 2007 is reflected in the number of people
the Group employs. As of December 31, 2007 D+S europe AG has 4,962 employees within
the Group (heads), 38.5% more than a year before (3,583). Including temporary workers
D+S europe AG employed 5,930 people as of December 31, 2007. This is an increase of 65%
compared to the previous year (3,583) and equals a full time equivalent of 4,897 employees
(PY 2,669). The acquisition of the Heycom Group executed in mid-2007 and the consequently
newly created segment “D+S e-commerce & fulfillment services” contributed to this increase in
the number of employees with over 500 people employed on a regular basis and roughly 500
temporary workers. Another strong driver was the organic extension of business in the field of
communication centers, in particular the new location on Rügen.
6 RemuneRation
In the remuneration report regulations pertaining to remuneration of the D+S europe AG
Management Board as well as its structure and amounts are set out. It also includes explanations
on regulation, composition and amounts of the remuneration of the Supervisory Board.
Remuneration of the management Board
The Presidential Committee is responsible for setting up the structure of the remuneration
scheme as well as remuneration of the Management Board. The Supervisory Board regularly
checks and gives advice on the remuneration structure.
Remuneration for Management Board members of D+S europe AG depends on the size of the
enterprise, its economic and financial position as well as the amount and structure of remuneration
of comparable enterprises. Additionally, the scope of tasks, experience and achievements
of the individual Board members are taken into account for assessing remuneration.
To a large degree Management remuneration is achievement-based. It consists of three components:
a fixed basic remuneration, a variable bonus for achievement of objectives and a discretionary
component. No provision is made for pensions.
Apart from being entitled to fixed remuneration as agreed in the individual contracts, in the
past Management principally benefited from schemes for issuing convertible bonds to the
Board members and selected executives (Executive Stock Option Plan) resolved by the Annual
General Meeting of D+S europe AG in 2004, 2005 and 2006. These schemes for issuing convertible
bonds provide that members of the Board and selected executives may subscribe to
convertible bonds, thus obtaining entitlement to buy shares in D+S europe AG in the amount
of remuneration rights as laid down in their employment contract instead of demanding repayment
of the bond and payoff of their variable remuneration component. Shares are thus issued
only against transfer of contractual remuneration rights. Any other remuneration right of the
Board does not result from the scheme for issuance of convertible bonds.
“ Workforce increases
by 65%
to 5,930”
51

52
RepoRt of management
The fixed remuneration component is paid monthly as a salary. It is newly assessed in the
course of contract extensions. Moreover, Board members are conceded benefits in kind mainly
consisting of company cars, telephone flat-rates and insurance premiums.
Variable remuneration is intended as an incentive. It depends on the development of operative
Group earnings before interest and taxes (EBIT).
Results to be achieved by the Board members in order to obtain the target-based bonus depend
on objectives communicated to the capital market for the corresponding business years. For
the Chairman of the Board parts of his achievement-based bonuses are tied to meeting halfyear
and full-year targets. Target-related bonuses are due when agreed targets are met. When
results fall short of these objectives the Board members are not entitled to these bonuses.
Further components of his target-related bonus in 2007 were tied to the successful acquisition
of the interests in the Heycom Group.
Remuneration of the Board including benefits in kind amounted to EUR 1,439,000 (PY:
EUR 954,000) and was divided among the members of the Board as shown below:
Fixed
thousands EUR
Business and Basic Conditions
Achievement-
based component
thousands EUR
Other
thousands EUR
In the business year 2007 the members of the Board did not subscribe shares in the course of
the scheme for issuance of convertible bonds.
The members of the Board did not obtain any loans from the company.
Remuneration of the supervisory Board
Remuneration for the members of the Supervisory Board is fixed at EUR 5,000.00 per annum
plus evidenced expenses. The Chairman of the Supervisory Board receives EUR 17,500.00 plus
evidenced expenses; the Vice Chairman of the Supervisory Board receives EUR 5,500.00 plus
evidenced expenses. In addition, each member of the Supervisory Board receives annual remuneration
in the amount of EUR 2,500.00 for every chairmanship of a committee and additional
annual remuneration of EUR 750.00 for each membership in a committee of the Supervisory
Board. The annual remuneration for each member of the Supervisory Board increases by
EUR 500.00 per each cent exceeding the amount of 15 cents of shareholders dividend per share.
Business development property situation
Total
thousands EUR
Achim Plate 420 230 24 674
Tobias Hartmann 330 30 13 373
Sven Heyrowsky
(as of July 6, 2007)
180 0 12 192
total 930 260 49 1,239

financial situation human Resources remuneration supplementary statement Risks forecast
Moreover, all expenses incurred in the course of their mandate as well as turnover tax charged
on their remuneration are refunded to members of the Supervisory Board.
Members of the Supervisory Board do not obtain any loans from the company.
The following remuneration components result from the 2007 business year:
7 supplementaRy statement
Fixed
EUR
Function-related
EUR
With effect from January 1, 2008 Mr Henning Soltau has been appointed Chief Financial
Officer (CFO) of D+S europe AG.
Total
EUR
Klaus Thiemann 5,000.00 17,500.00 22,500.00
Thomas Hoffmann 5,000.00 1,500.00 6,500.00
Hans-Jürgen Beck 5,000.00 0.00 5,000.00
Prof. Knut Foeckler 5,000.00 0.00 5,000.00
Dr. Thomas Adler 5,000.00 0.00 5,000.00
Mario Bethune-Steck 5,000.00 750.00 5,750.00
Kristina Krüger 5,000.00 1,250.00 6,250.00
Ursula Harjes-Loock 5,000.00 750,.00 5,750.00
Jürgen König 5,000.00 0.00 5,000.00
Ulrich Beiderwieden 5,000.00 0.00 5,000.00
Karlheinz Vernet Kosik 5,000.00 0.00 5,000.00
Andreas Klebe 2,833.33 0.00 2,833.33
By notarized contract of sale of January 30, 2008 and with legal effect from January 1, 2008
D+S europe AG acquired 85.2% of the interests in Adamicus GmbH, Munich. A call option has
been conceded to D+S europe AG for purchase of the remaining 14.8% of the GmbH interests
in Adamicus GmbH. Adamicus GmbH operates in the field of online marketing.
Apart from the two events described above no other events of significance occurred after concluding
the business year 2007.
53

54
RepoRt of management
8 Risks
8.1 Risk management
Business and Basic Conditions
In the course of its business activities the D+S europe Group is exposed to various risks inseparably
linked with entrepreneurial transactions. The Group faces these risks with a comprehensive
risk management system as an integral part of its business processes and an essential element
of its business decisions. The aim thereby is to identify possible risks involved in its transactions
at an early stage and to monitor and limit them by means of appropriate control mechanisms.
At the same time Management of the Group will consistently use business opportunities in
order to maintain successful, value-oriented growth.
Risk management is essentially composed of a planning system, internal reporting and comprehensive
risk reporting.
The planning system allows for possible risks to be detected and evaluated on the basis of
strategic Group planning and medium-term financial planning, thus making sure that possible
hazards are taken into account in decision making at an early stage and control measures for
coping with these risks can be initiated.
Monitoring and control of the economic risks involved in active business are ensured by means
of a standardized internal reporting procedure with the same unified standards throughout the
Group. Thus Management and the various management levels are informed every month on
the current economic situation and to what degree objectives have been achieved. By means of
the corresponding instruments deviations from the objectives can be identified and appropriate
counter-measures initiated.
These measures are supplemented by market and benchmark analyses to further increase risk
transparency.
Addressing, evaluating and controlling of risks is implemented by way of central Group risk
management which, apart from coordinating tasks and processes, also determines standardized
basis conditions and guidelines for the entire Group. The division responsible for the risk
manage ment system regularly checks the scope of risks and the correct course of business
processes. Moreover, the system ensures that internal control systems work properly and
evaluates the overall risk situation. In this way Management obtains decision-relevant information
for con trolling and optimizing the individual corporate units. Thus it can respond to
emerging risks to the company position caused by the market situation, new legislation or
changes in technology.
With regard to insurance measures risks are only insured as long as it seems rational, relative
to the economic benefit.
As follows we will describe major risk areas which can essentially affect our business development
as well as our financial and earnings position. These are not the only risks we are faced
with. Risks that are not known to us or risks that we consider less important at present may
also have negative effects on our business if the situation changes.
Business development property situation

financial situation human Resources Remuneration supplementary statement risks forecast 55
8.2 Risks Related to seCtoRs
8.2.1 Risk of falling margins in the segment “d+s mobile & telephony services”
In the past two years the field of value-added services, where D+S europe AG operates with its
subsidiaries dtms GmbH and mobileview as well as their subsidiaries, showed a trend towards
sinking margins for almost all call number lanes and on all platforms – fixed and mobile networks
– in Germany. On the one hand, the previously strongly competitive market for valueadded
mobile solutions has meanwhile consolidated, leading to stabilized margins in this field.
On the other hand, a so-far unforeseeable shrinkage in margins cannot be ruled out.
If in future further shrinkage in margins for value-added mobile solutions and/or an accelerated
drop in margins in the field of value-added services should occur which cannot be offset by new
business, this could have negative effects on the financial and earnings position of D+S europe AG.
8.2.2 economic risk
While at present D+S europe AG is basically independent from economic influences, some
of its clients belong to the group of strongly cyclical industries. Particularly in the segment
“D+S e-commerce & fulfillment services”, D+S europe AG’s clients from the retail industry
are exposed to economic fluctuations. On account of the market growth for B2B online shop
sales providers forecasted by various market research institutes, the Board of D+S europe AG
is of the opinion that possible cyclical losses in their clients’ sales can be compensated, and
dependency on market conditions of the D+S europe AG segment “D+S e-commerce & fulfillment
services” can be avoided. Should, however, in future D+S europe AG’s clients succeed in
passing economic losses on to the company and should the forecasted growth not occur so
that the company cannot compensate for such losses, there might be the risk for D+S europe
AG’s segment “D+S e-commerce & fulfillment services” of turning form a non-cyclical into a
cyclical enterprise. In this case a possible recession would have negative effects on the financial
and earnings position of the company.
In the segments “D+S mobile & telephony services” and “D+S communication & collection
services” D+S europe AG is able to compensate future cyclical drops by counter effects.
Should, however, these counter effects not or only partially take place the company might not
be able to sufficiently compensate cyclical drops so that D+S europe AG might turn from a
largely non-cyclical into a more cyclical enterprise in the segments “D+S mobile & telephony
services” and “D+S communication & collection services”. In this case a possible economic
recession would have negative effects on the financial and earnings position of the company.

56
RepoRt of management
Business and Basic Conditions
8.2.3 Risk of falling prices in the segment “d+s e-commerce &
fulfillment services”
For its clients (especially from the clothing industry) D+S europe AG provides Europe-wide
services in the segment “D+S e-commerce & fulfillment services” via its subsidiary Heycom
starting from the operation of Internet online shops (front end) via logistics and physical
consignment sales (back end) up to integrated online marketing campaigns via its subsidiary
Adamicus. The term “e-commerce” comprises the entire process of these services.
Due to the high growth dynamics in the market for B2B online shop sales providers no firm
price structure has taken root for the type of service offered by D+S europe AG. In recent years
mainly market trailblazers have benefited from this fact being able to exploit their first-mover
edge and taking up a profitable price position. In future the field of e-commerce has to face
stronger competition in the market which could lead to a gradual erosion of prices for e-commerce
services. This would probably also have an impact on the D+S europe Group as one of
the leading providers in the market for B2B online shop sales providers.
Should a possible drop in prices in the market for B2B online shop sales providers occur
sooner/to a higher degree than expected by the company, this would have negative effects on
the financial and earnings position of D+S europe AG.
8.2.4 Risks arising from the market situation in the segment
“d+s communication & collection services”
In the past, in the field of service-oriented customer contact services (customer care) of the
segment “D+S communication & collection services” the D+S europe Group has been exposed
to a highly competitive market environment marked by oversupply of providers especially in the
field of services of low complexity. On account of this difficult market environment D+S europe AG
has not been able to implement prices corresponding to the quality of its services in the field of
customer care.
It is not certain that in future the conditions for a stabilized and improved price situation and
profitability of the company as a provider in the field of customer care will be sustainable.
Should future pricing pressure strengthen again – for instance, due to circumstances resulting
from market, economy and other influencing factors, this could have negative effects on
the financial and earnings situation of D+S europe AG as a leading competitor in this segment.
8.2.5 Risks arising from slower growth in the market for B2B
online shop sales providers
In recent years the market for B2B online shop providers has achieved high growth rates, and in
future the company expects significant growth in this field based on available market forecasts.
D+S europe AG hopes to profit from the development in the market for B2B online shop sales
providers in future with its segment “D+S e-commerce & fulfillment services”. Should in future,
contrary to the forecasts made by market researcher, the growth in the field of Internet-based
business slacken and turnover and earnings thus generated grow more slowly than forecasted
or even decline, this could have negative effects on the financing and earnings position of
D+S europe AG.
Business development property situation

financial situation human Resources Remuneration supplementary statement risks forecast 57
8.2.6 Risks arising from market adjustments in the telecommunications
industry for the segment “d+s mobile & telephony services”
In the past years market adjustment took place in the telecommunication industry, for
instance, in the field of mobile network service providers. This general trend will assumedly
continue in future. Thus consolidation in the fields of DSL and broadband subscriber
connections is expected.
For dtms GmbH this will result in the risk of losing existing resellers and/or of not being able
to acquire a sufficiently large number of new resellers. This could have negative effects on the
financing and earnings position of D+S europe AG.
8.2.7 Risks arising from competition in the call and communication
center market
The German call and communication center market continues to be strongly fragmented.
Due to concentration in recent years, a top group of a few enterprises outstanding by size has
developed which compete fiercely for market shares. One of these enterprises is D+S europe AG.
All in all, after the concentration process of the past six years, it can be assumed that even with
a positive economic development the trend towards concentration in favor of large competitors
will continue.
Should the D+S europe Group be unable to continue to hold steady in the strongly competitive
market, this could considerably impair the growth and financing power of the company and
thus have negative effects on the financing and earnings position of D+S europe AG.
8.2.8 Risk of market entry of new competitors in the segment
“d+s e-commerce & fulfillment services”
Due to the high market potential in e-commerce business, the segment “D+S e-commerce &
fulfillment services” is exposed to the risk that new national and international competitors
enter the market for B2B online shop providers and capture market shares.
Should the D+S europe Group not succeed in retaining their clients and in defending their
market position or expanding it as expected, this might considerably impair D+S europe’s
growth and financing power with negative effects on the financing and earnings position of
D+S europe AG.
8.2.9 Risk that other outsourcing providers might copy the d+s europe
business model and risk of market entry of new competitors
in the segment “d+s mobile & telephony services”
So far the field of value-added services has been defined by full-service providers with a valueadded
oriented B2B service range (e. g. Deutsche Telekom, Arcor, Colt) and specialists such
as dtms GmbH with purely IN-based (IN = Intelligent Network) service portfolio. In addition,
there is a group of subordinate content and applications providers which, as a rule, link themselves
to technical enablers such as dtms GmbH. Especially with value-added specialists there
is the risk and possibility that large players from the outsourcing market segment (i. e. outsourcing
of business processes which do not belong to a company’s core business to external
service providers) copy the business model of D+S europe AG and extend their value-added
chain by suitable acquisitions.

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RepoRt of management
Business and Basic Conditions
IN is not a physical network but a central service-oriented system which is imposed on an existing
telephone network. IN serves to extend a telephone network by intelligent network components
and additional features. Special emphasis is placed on value-added services for fixed and
mobile network telephony and fax. Service call numbers (e. g. 0800 or 0180) leading to an IN
service are registered at special switching centers. If such a number is dialed, the data of the
call can be linked up with different parameters (such as origin of call, time, day of the week),
and flexibly modifiable and adaptable services can be offered.
For the past two to three years the German market for mobile value-added services has essentially
been shaped by five large providers. In the company’s opinion, in the present market
situation, the market for mobile value-added solutions will not be faced with new competition.
It can, however, not be strictly ruled out that the unexpected entrance of new competitors
may result in losses in market shares and consequently turnover in the segment “D+S mobile &
telephony services”.
Should, due to fiercer competition, the D+S europe AG segment “D+S mobile & telephony
services” not be able to consolidate its market shares and extend them as planned, this could
impair the growth and financing power of D+S europe AG resulting in negative effects on the
financing and earnings position of D+S europe AG.
8.2.10 Risk arising from changes in the technology applies in the
segment “d+s mobile & telephony services”
dtms GmbH continuously evaluates the effects of the spreading of the Internet Protocol (IP)
in the course of so-called Next Generation Networks (NGN) on the world of classical fixed
networks. Immediate competition caused by IP has so far not been perceived. Topics and their
possible impacts such as billing ability, quality of service and general availability of services are
being discussed at regulatory levels and by trade associations. It may, however, be expected
that migration to NGN is not a homogeneous process. Regulatory measures taken by the
Fe deral Network Agency and corresponding international boards are not expected for a period
of at least ten years. Should in future a shift in competition away from service telephony providers
towards hardware-oriented system suppliers should occur, this would have negative
effects on the financing and earnings position of D+S europe AG.
8.2.11 Risk arising from competition by inhouse service providers in
the segment “d+s communication & collection services”
D+S europe AG as external service provider manages the contacts of internationally operating
enterprises to their private customers. It cannot be ruled out that in future D+S europe AG’s
clients start to operate their own customer contact management in so-called “Inhouse Call
Centers” possibly offering their services to other enterprises. The risk of inhouse service providers
of increasingly competing with external providers is rising as enterprises are prepared to
aggressively generate contribution margins for their internal providers from external business
or as these enterprises are inclined to increase their own volumes in the external provider market
by cross-subsidizing and price-aggressive transactions by their internal service providers. A
development of this kind would have negative effects on the financing and earnings position of
D+S europe AG.
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financial situation human Resources Remuneration supplementary statement risks forecast 59
8.2.12 Risk of the establishment of online shops by clients of d+s europe
in the segment “d+s e-commerce & fulfillment services”
It cannot be ruled out that in future D+S europe AG’s clients establish their own Internet online
shops to sell their goods. This would have negative effects on the financing and earnings position
of D+S europe AG.
8.2.13 Risks arising from clients’ reluctance to outsource
D+S europe AG’s strategic orientation is based on the market trend established by external
surveys towards outsourcing business processes which are not part of their core business
to service providers such as D+S europe AG. Should existing and/or potential clients not decide
to outsource business units to the extent expected by the company this would have a negative
effect on the financing and earnings position of the company.
8.2.14 Risks arising from regulation
The operations of the D+S europe Group and its clients, in particular in the field of telecommunications
(for example, in connection with value-added services and B2C telephone sales
[“outbound telephony”]), but also in other fields is strongly controlled by national and European
regulations, and the success of D+S europe AG, especially in the segments “D+S mobile &
telephony services” and “D+S communication & collection services”, are influenced by regulatory
intervention by lawmakers, courts and regulatory authorities to a high degree.
In many cases all applicable regulations are subject to frequent modification and are continuously
adjusted to technical progress and a higher degree in customer and consumer protection
at international and national level. The same applies to the respective jurisdiction. Media and
consumer protection associations observe various services in this field critically (e. g. sale of
ringtones, subscriptions, different service call numbers, etc.) and it cannot be ruled out that
regulatory intervention will further reduce the market potential in this segment.
Again and again the area of telecommunications is called upon by regulatory measures also for
public functions. Since 2008 the Telecommunications Act (TKG) has provided for telecommunications
and Internet providers under certain conditions to store various data on telephone
connections, fax and SMS messages, email correspondence and Internet connections for a period
of six months, incurring additional costs. At present the effects on the D+S europe Group
cannot be assessed. In future further regulatory measures are expected. On May 15, 2007,
the Federal Ministry for Justice, for example, announced its intention to take legal measures to
control unwanted telemarketing calls, so-called cold calls. This concerns the introduction of
a ban prohibiting calling line identification restriction and imposing fines for infringement of
telephone advertising restrictions. Furthermore, it cannot be ruled out that in future providers
of telecommunication services will be increasingly held responsible in case of infringements of
third parties in the fields of intellectual/industrial property rights and/or protection of minors.

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RepoRt of management
The D+S europe Group cannot foresee future changes in German, European or other regulations
applicable to the company and/or its clients nor the effects such amendments may have
on their clients’ business operations. The same applies to amendments in legislation or regulatory
practice. It cannot be ruled out that clients of the D+S europe Group will try to hand
down costs to the D+S europe Group arising from investments and other expenses incurred by
tightening of the regulations they have to observe. Nor can it be ruled out that with regard to
the segments “D+S mobile & telephony services” and “D+S communication & collection services”
or other segments the regulations described above will lead to an unexpected change in
customer behavior, resulting in clearly reduced usage of services provided. Even regulations not
immediately applicable to the D+S europe Group would thus have an indirectly negative impact
on the business operations of the D+S europe Group and could reduce the profit margins of
the company. This could result in negative effects on the financing and earnings position of the
company.
8.3 Company-Related Risks
Business and Basic Conditions
8.3.1 Risks arising from the high payroll costs in germany
At present D+S europe AG provides its services mainly at home. Availability of voice and data
lines, however, make it technically possible to produce large parts of the services provided by
D+S europe AG outside Germany. Thus D+S europe AG’s competitors have moved their call
center activities abroad where wages for call center employees are considerably lower than in
Germany. It cannot be ruled out that competitors producing abroad exert pricing pressure also
on the competition for domestic customers. This could result in negative effects on the financing
and earnings position of the company.
8.3.2 Risks arising from business fluctuation per quarter and
per business year
In recent years, dependence on seasonal factors in the field of customer care as well as changes
in customer behavior has been the cause for insufficient contribution margins. In future seasonal
and/or economic influences can also lead to fluctuations in earnings of D+S europe AG
per quarter and per business year as contractual guarantee of project volumes is not provided
for most of the projects. The company’s turnover cannot be predicted reliably due to forecasting
uncertainty with regard to customer behavior. In particular there is the risk that the company
cannot or cannot fast enough adapt its cost structure in order to make up for an unexpected
drop in sales. This could have negative effects on the financing and earnings position of
D+S europe AG.
8.3.3 Risks arising from the client structure
Characteristic for the business of D+S europe AG is a customer structure which, due to its
focus on large enterprises, has client relationships whereby share of the total turnover of the
D+S europe Group in some cases was up to 13.1% in the 2007 business year. It can therefore
not be ruled out that the loss of only one major client budget will lead to a distinct burden on
the company’s results.
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financial situation human Resources Remuneration supplementary statement risks forecast 61
In the past there was a particularly strong dependency on one large client in the D+S europe AG
segment “D+S e-commerce & fulfillment services” operated by the subsidiary Heycom. Meanwhile
the company has several large clients also in this segment which, however, all belong
to the clothing industry. Should the possible simultaneous loss of some large clients not be
compensated by new business this might constitute a lasting hazard to the success of the D+S
europe Group in the segment “D+S e-commerce & fulfillment services”.
In the segment “D+S mobile & telephony services” D+S europe AG’s subsidiaries operating in
this field also depend on large clients. Thus in this segment the minute volumes of 20 to 40 key
accounts are decisive and the simultaneous loss of some of these clients would have negative
effects on the business development of D+S europe AG in this segment.
The economic development of the subsidiaries of D+S europe AG operating in the segments
“D+S e-commerce & fulfillment services” and “D+S mobile & telephony services” and thus also
the development of D+S europe AG, is closely linked to the development of its major clients.
Should the company lose some of the key accounts, this would have immediate negative effects
on the business results and the turnover development of D+S europe AG and on the financing
and earnings position of the company.
8.3.4 Risks arising from further value adjustments to assets
In the past the company was forced to carry out value adjustments according to IAS/IFRS and
write-downs on the lower attributable value in accordance with the German Commercial Code
(GCC) with regard to assets and participations held in the companies of the D+S europe Group
in the course of so-called impairment tests. This particularly concerned recognitions of business
participations and goodwill from takeovers of participations in 2000 which have meanwhile
been sold. It cannot be ruled out that value adjustments with regard to participations
and goodwill as well as other assets of D+S europe AG will have to be carried out in future. This
could have negative effects on the financing and earnings position of D+S europe AG.
8.3.5 Risk of rising interest rates
The D+S europe Group is partly financed by borrowed capital with variable interest rates. An
increase in the reference interest rate agreed for these loans would result in an increase in the
interest burden for D+S europe AG. D+S europe AG is trying to make up for most of the interest
rate risk by means of hedging transactions by way of so-called interest rate swaps and interest
rate caps. If the hedging transactions, executed by the company, do not fully cover the financial
risk arising from an increase in interest, the company will run the risk that the additional financial
burden would have negative effects on the financing and earnings position of the company.

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RepoRt of management
Business and Basic Conditions
8.3.6 Risk of an increase in the tax burden by additional claims
in connection with current and/or future tax audits
In Germany D+S europe AG and its subsidiaries are subject to constant tax inspections. Tax
audits are taking place with D+S europe AG and D+S solutions GmbH for the business year
2001 to 2004. So far these have not resulted in any claims. Considerable claims volumes by
the revenue authorities would have negative effects on the financing and earnings position of
D+S europe AG.
Furthermore, tax audits are presently being executed by the revenue office Mainz at the Group’s
subsidiary dtms GmbH. One subject matter of the audit is the question of whether fees received
by dtms GmbH for the account of third parties are to be posted as revenues and whether in
this context, payments made to clients abroad are non-deductible which would have a negative
impact on the total of corporate income and trade tax. Another matter of the audit is the
current-value depreciation on stake values carried out by dtms GmbH in previous years. It cannot
be ruled out that the audits at dtms GmbH result in additional claims. Should additional
tax claims result for the periods subject to tax inspections, the company is of the opinion that it
would be entitled to warranty claims against the alienators of dtms who transferred their shares
to D+S europe AG in 2005. Should this ruling of D+S europe be incorrect and additional tax
claims be established which are not or not fully covered by warranty payments by the alienators
of dtms GmbH, this could constitute a financial burden for D+S europe AG which might
also have negative effects on the financing and earnings position of D+S europe AG.
8.3.7 Risk of an increase in tax burden due to losses carried forward
being stated too high
Since its foundation, the company has executed several capital increases, partly in considerable
amounts. In compliance with Art. 8 Section 4 of the Corporate Tax Act, setting off profits
against losses of past fiscal years is not permissible if more than half of the interests in D+S
europe AG have been transferred and the company continues its business operations predominantly
with new business assets. D+S europe AG is of the opinion that appropriate application
of this law will entail that tax losses of the company constitute losses carried forward being
usable for tax purposes in future. Should the revenue office decide deviant taxation, losses
carried forward from corporate income and trade tax would be at risk. As shown in the corresponding
tax assessment, losses carried forward from corporate income tax as of December 31,
2007 amounted to EUR 23.5 million and losses carried forward from trade tax as of December
31, 2007 amounted to EUR 18.0 million.
Moreover, based on according information from its tax advisor, D+S europe AG assumes that,
due to taxable losses as from 2000 and the resulting losses carried forward up to and including
the fiscal year 2004, it is not liable to tax payments. Should this view not prove true or should
the losses carried forward established by the company not or not in the calculated amount be
accepted by the revenue authorities, this could imply that losses carried forward are not possible
or losses can only be carried forward in an amount smaller than expected by the company.
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financial situation human Resources Remuneration supplementary statement risks forecast 63
Should D+S europe AG not be able to carry forward losses from the past in the planned
amounts, the company could be faced with unforeseeable tax burdens. This would have negative
effects on the financing and earnings position of D+S europe AG.
8.3.8 Risk of an increase in tax burden due to future changes in tax law
Future amendments of the tax law in Germany or other countries where D+S europe AG is or
will be taxable could generally lead to a higher tax burden for the company and consequently
have considerable negative effects on the financing and earnings position of the company.
8.3.9 Risks arising from securing employment and retention
of qualified executives
Success of the company largely depends on its highly qualified executives, in particular,
members of the Board and senior management. In future it will still be crucial for D+S europe AG
to find and retain executives for their business units with the necessary competencies such as
power of judgment, knowledge of the market and leadership qualities.
In case of personnel changes within the Board and/or to senior management it cannot be ruled
out – in spite of thorough selection processes – that new staff does not have all the required
executive competencies. Should D+S europe AG lose executives and/or other employees in key
positions or should it not be able to attract enough expert staff, as a result important decisions
and measures might not be implemented successfully, the company might not develop as expected
or even negative development take place. Each of these factors would have a negative effect
on D+S europe AG and on the financing and earnings position of D+S europe AG.
8.3.10 Risks arising from securing recruitment of skilled personnel
for the segments “d+s e-commerce & fulfillment services”
and “d+s communication & collection services”
On account of the strong growth of the segment “D+S e-commerce & fulfillment services” of
D+S europe AG availability of competent employees especially in the fields of company organization
and software is vital. Should D+S europe AG not succeed in recruiting enough skilled
personnel for this field or in replacing leaving employees, the actual development of the segment
could significantly deviate from the original plan.
In the segment “D+S communication & collection services” further extension of business
operations in particular can result in an increase in staff requirements for D+S europe AG.
Should the company not be able to recruit sufficient suitably skilled staff for this segment of
D+S europe AG, the business development forecasted for this field may not meet the company’s
expectations.
A lack in skilled personnel in the segments “D+S e-commerce & fulfillment services” and/
or “D+S communication & collection services” would consequently lead to impaired business
transactions which could also have negative effects on the financing and earnings position
of the company.

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RepoRt of management
Business and Basic Conditions
8.3.11 Risks arising from securing sufficient protection of intellectual
property or cost-incurring use of third-party intellectual property
D+S europe AG with its subsidiary Heycom has technical know-how (IT) which is inherent in a
few employees. There is therefore no guarantee that a disclosure of D+S europe AG’s business
secrets can be avoided or that third parties do not develop the same or similar know-how
independently of D+S europe AG or – for instance by enticing staff – gain access to the technical
know-how of D+S europe AG.
Insufficient protection of D+S europe AG’s intellectual property can restrain its ability to make
profitable use of an achieved technological edge or lead to a reduction of future earnings if
competitors can also provide services which are similar to the ones developed by D+S europe AG.
This could impair the competitive position of D+S europe AG and the resulting drop in earnings
and turnover would have a negative effect on the financing and earnings position of the company.
Furthermore, it cannot be ruled out that in future D+S europe AG will be dependent on using
third-party technology by buying licenses or enticing employees with know-how which would
result in corresponding costs and might have negative effects on the financing and earnings
position of the company.
8.3.12 Risk of failure of the systems and technical installation
Services delivered by D+S europe AG are based on the application of complex IT systems. Supply
of services requires faultless functioning of decentralized computer and telecommunication
networks. D+S europe AG depends on the functionality of the systems operated as well as systems
not operated by the company such as clients’ network infrastructures and IT systems.
Extended use of systems that are not up-to-date, as well as the introduction of new systems
can result in considerable adverse effects. Moreover, the quality of generated data depends on
the functionality of upstream third-party systems. Interruption of these upstream systems
can potentially lead to incorrect information impairing production or other business fields of
D+S europe AG or affecting declarable information.
As data processing systems are particularly prone to trouble, damage, power outages, computer
viruses, fire and similar incidents, failure or interruption of one or more major IT or telephone
systems at D+S europe AG or one of its subsidiaries cannot be ruled out despite existing precautions
and advanced technical standards for the operation of IT systems and technical
installations. Failure, malfunction or interruption of operations of the data processing systems
used by D+S europe AG can impair the company’s capability of maintaining business processes
efficiently and – as the services of D+S essentially rely on the functionality of the technical
systems – can cause serious damage to D+S europe AG depending on the duration and technical
dimension.
The loss-of-operations insurance taken out by the company for cases of operational failure
includes a deductible of two days up to an indefinite amount. Any operational failure or standstill
would, however, entail the considerable risk of loss of earnings and potentially also loss
of clients – regardless of possible compensations or insurances – thus resulting in considerable
negative effects on the financing and earnings position of D+S europe AG.
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financial situation human Resources Remuneration supplementary statement risks forecast 65
8.3.13 Risks in connection with software systems developed by the company
In particular in the segment “D+S e-commerce & fulfillment services” D+S europe AG applies
software systems developed by the company itself in its clients’ e-shops, for controlling purposes
in the communication centers and for billing purposes in the segment “D+S mobile & telephony
services”. Naturally, when applying this kind of software there is no warranty given by a third
party and claims for damage in case of malfunction and/or system failure are not possible. If
adequate written documentation of the internally developed software systems is not provided,
there is the risk that only individual employees of D+S europe AG have the required know-how
regarding these systems and it is not generally available. Should these knowledgeable persons
leave the company this could lead to malfunctions which cannot be eliminated immediately
and would last for an indefinite period due to loss of know-how and insufficient documentation
for the systems applied. This would have negative effects on the business operation of
D+S europe AG and also on the financing and earnings position of the company.
8.3.14 Risks in connection with the use of the “intelligent network”
system in the segment “d+s mobile & telephony services”
In the segment “D+S mobile & telephony services” which D+S europe AG operates via its subsidiary
dtms GmbH the “Intelligent Network” system (IN) is applied.
Should parts of “Intelligent Network” fail for an extended period or even break down dtms
GmbH’s clients might claim damages from dtms GmbH. This could have negative effects on
the financing and earnings position of D+S europe AG.
8.3.15 Risks arising from quality defects
D+S europe AG renders services which have to meet certain quality requirements on the part
of its clients. In spite of all precautions taken by D+S europe AG, quality defects cannot be
ruled out in the future. Thus it is conceivable that technical problems occur when applying EDP
systems which could lead to impaired business transactions for the client. If the services rendered
by D+S europe AG do not meet the requirements agreed with the clients, this can lead to
a loss of clients and also loss of turnover. Cases of IT-related faults can result in time-intensive
checks and possibly repairs with corresponding idle periods. Moreover, quality defects could
lead to impaired market acceptance of the D+S europe AG’s other services and consequently to
drops in sales. Quality defects could also constitute a reason for clients to hold D+S europe AG
liable for their financial losses or loss of profits which can mean considerable costs even taking
existing insurance coverage into account. Furthermore, quality requirements on certain services
of D+S europe AG could rise to such an extent that, due to technological restrictions, certain
customer requirements cannot be met thus resulting in marketing restrictions.
All of these factors can lead to drops in sales, the loss of important clients, loss of market
acceptance or liability for damages resulting in negative effects on the financing and earnings
position of D+S europe AG.

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RepoRt of management
Business and Basic Conditions
8.3.16 Risks arising from the misuse of end customer data
Careful handling of end customer data collected by D+S europe AG in the course of its business
transactions for its clients is of utmost importance, and especially in the segments “D+S mobile
& telephony services” and “D+S communication & collection services” (for instance with regard
to voice-logs and signature files) a maximum in confidentiality is required to avoid misuse of
end customer data. Nevertheless, it cannot be entirely ruled out that claims arising from possible
infringement against confidentiality regulation are made by affected customers against
D+S europe AG.
In addition, the D+S subsidiary dtms GmbH can be indirectly affected by fraud and misuse
on the part of their clients. Thus it is possible that the proprietors of service call numbers are
subjected to payment of high damages on account of infringement of confidentiality, and/
or entire call number lanes or abbreviated numbers are deactivated by the Federal Network
Agency or mobile network operators. Should the latter occur or should proprietors of service
call numbers cease to operate due to high liability for damages, dtms GmbH would lose the
business from the deactivated call numbers or call number lanes or with affected customers
which might lead to considerable impairment to the business success of D+S europe AG in the
segment “D+S mobile & telephony services”. The financing and earnings position of the company
might be considerably impaired – as would be the case with infringement of confidentiality
regulation by D+S europe AG itself.
8.3.17 Risks in connection with planned growth in e-commerce business
D+S europe AG plans to continue its growth in the segment “D+S e-commerce & fulfillment
services” necessitating the provision of additional warehousing resources. Should D+S europe AG
not succeed in providing the necessary storage capacities in time, as a consequence turnover
and earnings in the segment “D+S e-commerce & fulfillment services” might not develop as
expected by the company. It is also possible that the resources required for growth are more
expensive than originally planned by D+S europe AG incurring additional expenses.
Either factor can have negative effects on the financing and earnings position of the company.
8.3.18 Risks arising from operating in new business fields
Due to the unpredictability inherent in the development of new technologies and procedures
it cannot be guaranteed that D+S europe AG will be able to design, introduce and market new
business units. Should D+S europe AG’s economic expectations associated with possible investment
decisions not be met or should it be impossible to implement the strategy an investment
decision is based on, this could lead to misallocations of financial resources. This could result
in negative effects on the financing and earnings position of D+S europe AG.
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financial situation human Resources Remuneration supplementary statement risks forecast 67
8.3.19 Risks arising from planned takeovers
In the past D+S europe AG has been subject to strong inorganic growth. It cannot be ruled
out that in future the company will acquire further enterprises. The company will prepare
and check possible acquisitions conscientiously. Nevertheless, acquisitions are a considerable
entrepreneurial risk and can have significant impacts on earnings and the continued existence
of the company. On the one hand, there is the risk that economic expectations associated with
investment decisions are not fulfilled. On the other hand, it cannot be ruled out that acquisitions
impose future burdens on the company which would not arise without the merger. These
burdens can include increased expenditure for more complex administration, uncertainties
with regard to personnel matters or harmonizing of business processes which would result in
negative effects on the financing and earnings position of D+S europe AG.
8.3.20 Risks in connection with possible international expansion
In the course of its overall strategic planning, D+S europe AG is viewing the possibility of
expanding or completing its business operations outside Germany. With regard to the option
of expanding internationally there are certain risks for D+S europe AG. It cannot be ruled out
that economic expectations associated with investments abroad will not be fulfilled or that the
strategy an investment decision is based on cannot be implemented. On the other hand, in the
course of possible international expansion D+S europe AG will depend on regional developments
in the foreign markets. Should these be opposed to D+S europe AG’s expectations this
could result in misallocation of financial and managerial resources on the one hand. On the
other hand, there is no guarantee that foreign locations can be staffed with qualified employees
in the number planned by D+S europe AG. Each of these factors – alone or in combination
with other factors – can have negative effects on the business transactions of D+S europe AG
in the countries concerned and on its financing and earnings position.
8.3.21 Risks arising from the possible introduction of statutory
minimum wages
At the end of 2007 D+S europe AG operated nine domestic and one foreign call centers with
a total of almost 4, 200 employees in the segment “D+S communication & collection services”.
The call center industry is exposed to the risk that comprehensive minimum wages applicable
to the entire industry could be introduced in Germany. A decision regarding the introduction
of minimum wages and the possible time of taking effect of such a measure has not been made
yet. Political circles are discussing a wage of EUR 7.50 per hour. At present a number of enterprises
from the call center industry are paying their employees lower hourly wages so that the
introduction of the mentioned minimum wage would have material effects for enterprises operating
in this field. As jobs in the call center industry are not subject to collective agreement, the
introduction of minimum wages for call center agents in Germany would only lead to additional
financial burdens for call center operators if established legally.

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Business and Basic Conditions
At D+S europe AG the minimum-wage debate concerns about 1,000 of the ca. 4,200 call
center employees. However, the effects of the statutory introduction of minimum wages of
EUR 7.50 would be small as current hourly wages of the employees affected by matter are
only slightly below the considered minimum wage level. Should D+S europe AG not be able to
hand down the additional burden resulting from the introduction of minimum wages to their
clients in the segment “D+S communication & collection services”, the personnel expenditure
ratio (against the turnover) in the segment “D+S communication & collection services” would
increase by less than 0.5 percentage points and have a negative effect in that amount with
regard to earnings of the segment “D+S communication & collection services”. This would
have also negative effects on the financing and earnings position of D+S europe AG.
8.3.22 Risk of repayment of subsidies granted in the past
In the past D+S europe AG claimed public subsidies for establishing call centers. These subsidies
are subject to conditions and strict check-ups with regard to adherence to the conditions
for public subsidies. If these conditions are violated there is the risk that subsidies are
reclaimed. Although D+S europe AG strictly adheres to the conditions, reclaims cannot be
ruled out. In particular, D+S europe AG has no bearing on whether the European Commission
classifies granted subsidies as non-permissible with regard to subsidization, and therefore
funds granted have to be paid back if subsidies were granted in the course of non-notified support
programs. Moreover, the partly long periods of commitment of the subsidies require particular
prudence in view of future modifications of business structures, because even constructional
changes to subsidized buildings or rental, leasing or sale of these buildings can lead to
the reclaim of subsidies granted in the past. Should D+S europe AG have to pay back granted
subsidies this could have considerable negative effects on the financing and earnings position.
8.3.23 Risk that subsidies for future investment projects are not granted
In the past D+S europe AG claimed public subsidies. In future it cannot be ruled out that
D+S europe AG will also apply for public subsidies. Granting of subsidies (as a rule) is at the
discretion of the granting body and based on the condition that budget funds are provided.
If funds are provided for a program in the budget of the granting body, the program is often
subsidized if it complies with the requirements for subsidies. There is, however, no legal right
on granting of subsidies. If the financial budgeting of D+S europe AG included public subsidies
which have ultimately not been granted, the company would be forced to use alternative
financing resources for covering its financing need in connection with investment projects.
Should the company not or only on conditions economically not justifiable be able to finance
its investment projects where public subsidies have not been granted, this could have negative
effects on the financing and earnings position of D+S europe AG.
Business development property situation

financial situation human Resources Remuneration supplementary statement risks forecast 69
8.3.24 Risk that entrepreneurial flexibility might be restricted by certain
obligations in connection with the loan agreement concluded in the
course of the heycom acquisition
In the course of the Heycom takeover the company concluded a loan contract with a bank
syndicate in a total amount of up to EUR 125,750,000 which, on the one hand, serves to
provide the financial means for the takeover of the interests in Heycom and, on the other hand,
to repay existing loans and also serves general entrepreneurial purposes of D+S europe AG
(see “Statements on the business activities of the company – essential contracts”).
Although the company assumes the financing volume supplied by the syndicated loan agreement
will provide the sufficient scope of action for the planned growth in the years to come,
it cannot be ruled out that adhering to the obligations laid down in the loan agreement has a
negative effect on the operative business activities of D+S europe AG, for example, because
further credit facilities will be heavily limited in the medium term, and consequently investments
the company regards as expedient remain undone or are postponed, thus weakening the company’s
competitiveness. Moreover, the ratios agreed in the syndicated loan agreement resulting
from the loss and profit statement, the balance sheet as well as the cash flow statement for
the coming years are based on a continuous increase in the earnings of the D+S europe Group.
The company has to maintain its positioning as multi-media outsourcing service provider strategically,
sustainably and profitably in order to achieve the forecasted increase. This strategy as
provider of comprehensive sales processes largely depends on the condition that the segment
“D+S e-commerce & fulfillment services” established after the takeover of the Heycom interests
and complementing the existing business activities of the D+S europe Group roughly generates
the forecasted earnings.
If D+S europe AG does not adhere to the obligations laid down in the loan agreement and
infringement of these obligations could not be corrected or the loan creditors did not waive
adherence to the obligations, this would constitute a termination reason according to the
terms of the loan agreement which would entitle the loan creditors to demand immediate
repayment of all obligations resulting from the loan agreement. Moreover, the occurrence of
a termination reason according to this loan agreement could elicit the right to recall other loan
agreements as well (cross fault). Adherence to the obligations laid down in the loan agreement
as well as termination of the loan agreement in combination with the resulting loss of liquidity
could have negative effects on the financing and earnings position of D+S europe AG.

70
RepoRt of management
9 foReCast
9.1 fuRtheR eXtension of outstanding maRket position
D+S europe AG develops its structures providently in line with emerging market trends. With
its growth strategy initiated in 2004, the Group succeeded in creating a comprehensive service
portfolio taking up a market-leading position as provider for e-commerce and customer contact
management. D+S europe AG will continue to further expand this position and extend
its value-added chain in depth and in width. It is part of D+S europe’s strategy to belong to
the top-3 providers, not only with its positioning as comprehensive service provider, but also
in its respective business units such as value-added services and mobile solutions. Thereby
D+S europe AG secures good market access for integrated complete solutions as well as for
the modular offers of its individual segments.
9.2 oRganiC and anoRganiC gRowth
Business and Basic Conditions
D+S europe AG’s growth strategy comprises organic and inorganic growth. When choosing the
methods, D+S europe AG adjusts to the market situation. On principle, D+S europe AG operates
on the premise that acquisitions have positive short-term effects on earnings per share.
In 2008, D+S europe AG intends to grow organically as well as inorganically. In the field of
organic growth in 2008, the service center on Rügen set up in 2007 will further increase its
workforce by a three-figure number to distinctly over 500 employees, based on the strong order
situation in the segment “D+S communication & collection services”. Moreover, the establishment
of a German tenth service center is planned. In 2008, D+S europe AG will also organically
extend its new business unit by means of electronic payment solutions which will operate under
the umbrella of D+S payment GmbH. Driven by numerous new contracts and in the course
of extension of capacities at Heycom in Garbsen in 2008, the segment “D+S e-commerce &
fulfillment services” will probably also create new jobs in the three-figure range.
In the field of inorganic growth, D+S europe AG distinguishes between acquisitions to extend
the value-added chain which can be paid from cash flow, and a large acquisition to essentially
confirm its market position. In 2008, D+S europe AG already made a small addition to its
services in the field of e-commerce by acquiring 85.2% of the interests in the online marketing
agency Adamicus GmbH. The segment “D+S e-commerce & fulfillment services” is the focus of
the next large acquisition intended to strengthen the market position of D+S europe AG and
enhance its international reach.
Business development property situation
“top-3 strategy”
“ neW business
unit With payment
solutions”
“ large acquisition
of international
significance”

financial situation human Resources Remuneration supplementary statement Risks forecast
9.3 inteRnational gRowth with e-CommeRCe management
In Germany, D+S europe AG is a leading provider for e-commerce and customer contact
manage ment. In the field of customer contact management D+S europe AG provides a complex
service portfolio at national level which ranges from value-added service and mobile
solutions via communication center services and dialog automation to address and collection
management. This enables D+S europe AG to create highest added value for its clients and
their private custo mers. Especially in Germany, D+S europe AG has an edge on other competitors.
D+S europe AG’s growth strategy in the field of customer contact management is therefore
mainly geared to the German market.
In the field of e-commerce management, D+S europe AG’s scope of action already reaches
from Germany across the whole of Europe. The strategy of D+S europe AG is aimed at extending
its international e-commerce business focused on fashion and clothing goods in order
to become Europe’s largest full service provider for e-commerce management in the fashion
industry. Growth in the field of e-commerce management is spurred on by new contracts and
accompanying organic growth as well as acquisitions.
9.4 fuRtheR CleaR gRowth of eaRnings
On the basis of the growth drivers described above, in 2008 the D+S europe Group expects
a consolidated turnover volume of approximately EUR 320 million and an EBIT margin
of 14 to 15% generated by organic growth alone. Earnings per share are thus expected to rise
by about 90% to 80 cents at least. According to the company’s business plan the number of
employees is to increase up to 6,500 by the end of 2008. Moreover, for the business year 2009
the company assumes further clear growth in all output quantities of the D+S europe Group.
Hamburg, March 13, 2008
The Management Board
Dipl.-Ing Achim Plate Tobias Hartmann Sven Heyrowsky Henning Soltau
“ e-commerce focus
in fashion segment”
71

72 finanCe
finance
Consolidated Financial Statement 74
Balance Sheet 74
Profit and Loss Account 76
Cash Flow Statement 77
Changes in Shareholders’ Equity 78
Assets 80
Notes on the Consolidated
Financial Statements 84
Auditors’ Report 130
Financial Calendar 132

“ Every contact gives the chance to to delight
customers, to tie them firmly to the brand and
to encourage further transactions”
Henning Soltau, Chief Financial Officer D+S europe AG
73

74
Consolidated finanCial statement
consolidated balance sheet december 31, 2007
assets Notes Dec. 31, 2007
thousands EUR
CuRRent assets
Dec. 31, 2006 *
thousands EUR
Liquid assets 7 23,176 11,399
Trade receivables 8 91,307 74,208
Inventories 9 1,980 1,519
Other current assets 10 15,651 4,628
Prepaid expenses 2,527 3,649
Other securities 8,441 0
CuRRent assets total 143,082 95,403
non-CuRRent assets
Deferred taxes 11 10,483 16,294
Financial assets 12 1,005 1,029
Fixed assets 12 13,123 12,356
Intangible assets 12 69,287 18,653
Goodwill 13 215,592 93,976
non-CuRRent assets total 309,490 142,308
assets total 452,572 237,711
* previous-year values adjusted; refer to Annex item 5

alance sheet profit and loss account Cash flow statement Changes in shareholders’ equity assets
liabilities Notes Dec. 31, 2007
thousands EUR
CuRRent deBts
Dec. 31, 2006 *
thousands EUR
Trade liabilities 14 29,116 29,522
Liabilities to banks 15 20,309 14,736
Other current liabilities 16 29,877 12,832
Liabilities from income taxes 7,878 3,133
Liabilities to dormant partners 17 1,267 1,294
Prepaid income 18 5,657 1,371
Provisions 19 34,857 2,866
Other current financial liabilities 20 5,405 3,239
CuRRent deBt total 134,366 68,993
non-CuRRent deBt
Bank loands 21 96,818 41,852
Convertible bonds 22 0 7
Participatory capital 23 11,000 11,000
Deferred taxes 11 14,927 3,324
Prepaid income 24 1,537 1,631
Other non-current liabilities 25 5,377 5,112
Con-CuRRent deBt total 129,659 62,926
shaReholdeRs’ equity
Subscribed capital 27 37,511 30,346
Capital reserves 126,074 57,195
For implementing authorized capital increase deposit paid 0 4,495
Balance sheet profit 24,962 13,431
Interests other partners 26 0 325
shaReholdeRs’ equity total 188,547 105,792
liabilities total 452,572 237,711
* previous-year values adjusted; refer to Annex item 5
75

76
Consolidated finanCial statement
consolidated profit and loss account
Notes
Jan. 1, 2007-
Dec. 31, 2007
thousands EUR
Jan. 1, 2006 -
Dec. 31, 2006 *
thousands EUR
Gross revenues 368,587 305,476
Advance payments of content providers - 137,051 - 140,663
sales pRoCeeds 30 231,536 164,813
Decrease/increase in finished and work in progress - 302 - 771
Other company-produced additions shown as income 857 905
Other operating revenues 31 9,552 7,735
Material expense/expenses for services received - 47,253 - 37,877
Personnel expense 32 - 87,839 - 65,462
Other operating expenses 33 - 59,224 - 41,561
eBitda 47,327 27,782
Depreciation and amortization on tangible and intangible assets
of property plant and equipment 12 - 14,661 - 8,760
eBit 32,666 19,022
Financial results 34 - 7,368 - 5,941
eaRnings BefoRe inCome taX 25,298 13,081
Taxes on income and earnings 35 - 10,653 - 3,588
eaRnings afteR inCome taX 14,645 9,493
Share in the profit and loss of other partners 36 158 - 82
annual group profit 14,487 9,575
Earnings per share (undiluted) in EUR 37 0.42 0.32
Earnings per share (diluted) in EUR 37 0.42 0.32
* previous-year values adjusted; refer to Annex item 5

Balance Sheet Profit and Loss Account Cash Flow Statement Changes in Shareholders’ Equity Assets
CONSOLIDATED CASh FLOw STATEmENT
Jan. 1, 2007-
Dec. 31, 2007
thousands EUR
Jan. 1, 2006 -
Dec. 31, 2006 *
thousands EUR
Annual Group Surplus 14,487 9,575
Operating results other partners 158 - 82
EArningS AftEr inComE tAx 14,645 9,493
Reconciliation of cash flow from operative activities
Depreciation on fixed assets and intangible assets 14,661 8,760
Net interest income/loss 7,368 5,021
Deferred taxes 6,993 540
Changes in trade receivables - 11,835 - 9,159
Changes in inventories - 423 - 299
Changes in other assets - 6,565 - 3,515
Changes in trade payables - 4,909 - 2,613
Changes in other debts 14,304 489
groSS CASh flow from opErAtivE ACtivitiES 34,239 8,717
Net interest income/loss - 7,368 - 5,021
nEt CASh flow from opErAtivE ACtivitiES 26,871 3,696
Purchase of tangible, intangible and financial assets - 18,926 - 11,382
Payments for acquisition of consolidated companies minus acquired capital - 70,722 - 14,820
Liquidity-related changes in goodwill - 3,007 - 3,187
Earnout-payments - 4,858 0
In-payments from asset disposals 1,538 9,675
Out-payments due to purchase of financial assets - 3,154 0
CASh flow from invEStmEntS - 99,129 - 19,714
Proceeds from use of shares in connection with purchase of interests 1,278 877
Capital increase for cash (net) 28,164 303
Repayment of other liabilities - 5,756 - 1,224
Issuance of profit participation rights 0 11,000
Borrowings 61,755 23,927
Repayment of loans - 5,783 - 14,380
CASh flow from finAnCing ACtivitiES 79,658 20,503
Changes in cash funds affecting payments 7,400 4,485
Cash funds at the beginning of period 8,560 4,075
CASh fundS At End of pEriod 15,960 8,560
Composition of Cash Funds
Cash and bank deposits 23,176 11,399
Liabilities to banks - 7,216 - 2,839
CASh fundS At End of pEriod 15,960 8,560
* previous-year values adjusted; refer to Annex item 5
77

78
Consolidated finanCial statement
consolidated statement on changes in shareholders’ equity
Subscribed Capital
thousands EUR
Capital Reserve
thousands EUR
Special Item ***
thousands EUR
As of January 1, 2006 29,655 52,647 0
Capital increase for kind 598 3,413 4,495
Capital increase for kind 93 290 0
Costs of capital increase * 0 - 48 0
Use of shares in connection with purchase of interests 0 877 0
Purchase of minority interests 0 0 0
Winding up interest rate swap reserve 0 0 0
Other changes 0 16 0
Annual Group Surplus 2006 0 0 0
as of december 31, 2006 30,346 57,195 4,495
Subscribed Capital
thousands EUR
Capital Reserve
thousands EUR
Special Item ***
thousands EUR
As of January 1, 2007 30,346 57,195 4,495
Reclassification of special items 725 3,770 - 4,495
Capital increase for cash 2,892 25,565 0
Capital increase for kind 3,548 34,460 0
Use of shares in connection with purchase of interests 0 1,278 0
Costs of equity purchase ** 0 - 178 0
Special effect from lowering of tax rate 0 4,035 0
Purchase of minority interests 0 0 0
Sale of minority interests 0 0 0
Other changes 0 - 51 0
Addition from initial consolidation with
gradual purchase of interests
0 0 0
Annual Group Surplus 2007 0 0 0
Negative minority interests brought forward 0 0 0
as of december 31, 2007 37,511 126,074 0
* reduced by related income tax advantages in the amount of EUR 32,000
** reduced by related income tax advantages in the amount of EUR 118,000
*** deposit paid for implementing the capital increase resolved
**** previous-year values adjusted; refer to Annex item 5

Balance sheet profit and loss account Cash flow statement changes in shareholders’ equity assets
Other Reserves
thousands EUR
Other Reserves
thousands EUR
Balance Sheet Profit
thousands EUR
Subtotal
thousands EUR
Minority Interests
thousands EUR
Shareholders’
Equity
thousands EUR
99 3,856 86,257 1,489 87,746
0 0 8,506 0 8,506
0 0 383 0 383
0 0 -48 0 - 48
0 0 877 0 877
0 0 0 - 1,082 - 1,082
- 99 0 - 99 0 - 99
0 0 16 0 16
0 9,575 9,575 - 82 9,493
0 13,431 105,467 325 105,792
Balance
Sheet Profit
thousands EUR
Subtotal
thousands EUR
Minority Interests
thousands EUR
Shareholders’
Equity
thousands EUR
0 13,431 105,467 325 105,792
0 0 0 0 0
0 0 28,457 0 28,457
0 0 38,008 0 38,008
0 0 1,278 0 1,278
0 0 - 178 0 - 178
0 0 4,035 0 4,035
0 0 0 - 1,086 - 1,086
0 0 0 - 401 - 401
0 - 49 - 100 0 - 100
0 - 1,903 - 1,903 0 - 1,903
0 14,487 14,487 158 14,645
0 - 1,004 - 1,004 1,004 0
0 24,962 188,546 0 188,546
79

80
Consolidated finanCial statement
consolidated fixed assets 2007
finanCial assets
As of
Jan. 1, 2007
thousands EUR
Additions
BW New
Subsidiaries
thousands EUR
acquisition costs
Additions
thousands EUR
Disposals
thousands EUR
Book
Transfers
thousands EUR
As of
Dec. 31, 2007
thousands EUR
Interests in affiliated companies 38 66 0 13 0 91
Participations 1,623 0 17 23 0 1,617
Lendings to participations 1,068 18 0 1,086 0 0
Investment securities 1 0 0 1 0 0
Other lendings 0 195 19 24 0 190
tangiBle assets
2,730 279 36 1,147 0 1,898
Technical equipment and machinery 17,590 595 694 184 - 16 18,679
Other fixtures and equipment 18,091 3,196 1,674 131 404 23,234
Advance payments 0 160 265 1 - 418 6
intangiBle assets
Concessions, commercial rights and
similar rights and property as well
as licences to such property
35,681 3,951 2,633 316 - 30 41,919
25,356 46,410 14,537 2,979 711 84,035
Development costs carried as assets 2,932 0 858 0 - 681 3,109
Advance payments 0 0 872 0 0 872
28,288 46,410 16,267 2,979 30 88,016
goodwill 98,908 119,375 2,843 602 0 220,524
165,607 170,015 21,779 5,044 0 352,357

Balance sheet profit and loss account Cash flow statement Changes in shareholders’ equity assets
As of
Jan. 1, 2007
thousands EUR
Additions
Interest Value
New Subsidiaries
thousands EUR
Write-doWns book values
Additions
thousands EUR
Disposals
thousands EUR
Book
Transfers
thousands EUR
As of
Dec. 31, 2007
thousands EUR
As of
Dec. 31, 2007
thousands EUR
As of
Dec. 31, 2006
thousands EUR
26 0 0 0 0 26 65 12
873 0 0 6 0 867 750 750
802 0 0 802 0 0 0 266
0 0 0 0 0 0 0 1
0 0 0 0 0 0 190 0
1,701 0 0 808 0 893 1,005 1,029
9,543 189 2,484 8 0 12,208 6,471 8,047
13,782 794 2,152 121 - 19 16,588 6,646 4,309
0 0 0 0 0 0 6 0
23,325 983 4,636 129 - 19 28,796 13,123 12,356
8,670 1,018 9,546 1,968 255 17,521 66,514 16,686
965 0 479 0 - 236 1,208 1,901 1,967
0 0 0 0 0 0 872 0
9,635 1,018 10,025 1,968 19 18,729 69,287 18,653
4,932 0 0 0 0 4,932 215,592 93,976
39,593 2,001 14,661 2,905 0 53,350 299,007 126,014
81

82
Consolidated finanCial statement
consolidated fixed assets 2006
finanCial assets
As of
Jan. 1, 2006
thousands EUR
Changes in
Consolidated
Companies
thousands EUR
acquisition costs
Additions
thousands EUR
Disposals
thousands EUR
As of
Dec. 31, 2006
thousands EUR
Interests in affiliated companies 0 38 0 0 38
Participations 890 650 83 0 1,623
Lendings to participations 1,045 0 23 0 1,068
Investment securities 1 0 0 0 1
tangiBle assets
1,936 688 106 0 2,730
Technical equipment and machinery 16,451 0 1,139 0 17,590
Other fixtures and equipment 16,353 364 2,009 635 18,091
intangiBle assets
32,804 364 3,148 635 35,681
Concessions, commercial rights and similar rights
and property as well as licences to such property 9,701 5,403 10,361 109 25,356
Development costs carried as assets 1,422 605 905 0 2,932
goodwill
11,123 6,008 11,266 109 28,288
Goodwill of D+S europe AG 12,920 0 0 0 12,920
Goodwill from capital consolidation 65,643 17,158 3,187 0 85,988
78,563 17,158 3,187 0 98,908
124,426 24,218 17,707 744 165,607

Balance sheet profit and loss account Cash flow statement Changes in shareholders’ equity assets
As of
Jan. 1, 2006
thousands EUR
Changes in
Consolidated
Companies
thousands EUR
Write-doWn book values
Additions
thousands EUR
Disposals
thousands EUR
As of
Dec. 31, 2006
thousands EUR
As of
Dec. 31, 2006
thousands EUR
As of
Dec. 31, 2005
thousands EUR
0 26 0 0 26 12 0
867 0 6 0 873 750 23
802 0 0 0 802 266 243
0 0 0 0 0 1 1
1,669 26 6 0 1,701 1,029 267
7,195 0 2,348 0 9,543 8,047 9,256
12,412 268 1,636 534 13,782 4,309 3,941
19,607 268 3,984 534 23,325 12,356 13,197
4,301 61 4,418 110 8,670 16,686 5,400
361 252 352 0 965 1,967 1,061
4,662 313 4,770 110 9,635 18,653 6,461
4,932 0 0 0 4,932 7,988 7,988
0 0 0 0 0 85,988 65,643
4,932 0 0 0 4,932 93,976 73,631
30,870 607 8,760 644 39,593 126,014 93,556
83

84
notes on the Consolidated finanCial statements
notes on consolidated financial statements
in compliance With ifrs for the Business year 2007
a. aCCounting poliCies and Consolidation
1 geneRal aspeCts of the Consolidated finanCial statements
The consolidated financial statements of D+S europe AG for the year ending December 31, 2007
were prepared in accordance with the principles of the International Financial Reporting
Standards (IFRS) as applicable in the EU and also according to the applicable commercial
regulations under Art. 315 a, Para. 1 HGB (German Commercial Code). All International
Financial Reporting Standards (IFRS) in effect in the EU as of the date of preparation of the
consolidated financial statements were applied except in cases in which IFRS becomes effective
after December 31, 2007.
The consolidated financial statement is shown in euros (EUR) as this is the currency most of
the group’s transactions are based on.
The following new standards and interpretations were required to be applied for the first time
for business years beginning on or after January 1, 2007:
• IAS 1 (Amendment), Presentation of Financial Statements – Capital Disclosures,
(January 1, 2007)
The amendment of IAS 1, published in August 2005, calls for statement of objectives, principles
and methods of capital management as well as certain quantitative information on the capital
structure of the company. The initial application of this standard does not result in any effects
on the assets, financial and earnings position of the D+S Group.
• IFRS 7 Financial Instruments: Disclosures (January 1, 2007)
This standard calls for comprehensive statements on the significance of financing instruments
for the assets, finance and earnings position of the company as well as qualitative
and quantitative information on the kind and extent of the risks involved in these financing
instruments. The disclosure requirement covered by IAS 32, Financial Instruments:
Disclosure and Presentation were extended by new disclosure requirements. This standard
is to be applied for business years beginning on or after January 1, 2007.
Moreover, for the first time in the business year 2007, the following interpretations were to be
applied which did not result in any effects on the accounting and valuation methods of D+S.
• IFRIC 10 Interim Financial Reporting and Impairment, (November 1, 2006);
• IFRIC 9 Reassessment of Embedded Derivatives, (June 1, 2006);
• IFRIC 8 Scope of IFRS 2, (May 1, 2006);
• IFRIC 7 Applying the Restatement Approach under IAS 29, Financial Reporting in Hyperinflationary
Economies, (March 1, 2006).

Up to the preparation of the consolidated statements the following amended and new standards
and interpretations became effective and are to be initially applied in later business years:
• IAS 23 (Amendment), Capitalization of Borrowing Costs, (January 1, 2009);
• IFRS 8 Operating Segments, (January 1, 2009);
• IFRS 3 rev. 2008 Business Combination and IAS 27 rev. 2008 Consolidated and Separate
Financial Statements, (July 1, 2009);
• IAS 32 rev. 2008 Financial Instruments: Presentation, (January 1, 2009);
• IFRS 2 rev. 2008 Share­based Payments, (January 1, 2009);
• IFRIC 11, IFRS 2 – Group and Treasury Share Transactions, (March 1, 2007);
• IFRIC 12, Service Concession Arrangements, (January 1, 2008);
• IFRIC 13, Customer Loyalty Programmes, (July 1, 2008);
• IFRIC 14, IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements
and their Interaction, (January 1, 2008).
These amended and new standards as well as their interpretations had not yet been adopted
by the EU by the time the consolidated financial statements were finalized except for IFRIC 11 and
IFRS 8. D+S did not take advantage of the possibility of applying these standards and interpretations
prematurely.
All companies whose accounts are included in the consolidated financial statements have prepared
financial statements in accordance with local legislation in addition to those prepared in
accordance with IFRS for purposes of consolidation. Financial statements under local legislation
– if legally required – were subjected to a year-end audit and received the auditor’s unqualified
opinion. The other small corporations whose accounts are included in the consolidated
financial statements are not obliged to have their financial statements audited.
2 Consolidated Companies
In addition to the operating results of D+S europe AG, the consolidated financial statements
include the operating results of all companies in which the latter controls the majority of the
voting rights of the partners. The consolidated companies comprise 21 domestic (PY: twenty)
as well as four (PY: four) foreign subsidiaries.
85

86 notes on the Consolidated finanCial statements
As of December 31, 2007 the following enterprises were fully included in the consolidated
financial statements:
Name Location
National:
Share
in capital
%
Abbreviation used
hereinafter
11840 – Voice Commerce GmbH Mainz 100.0 11840 GmbH
D+S address GmbH (previously: D+S Berlin GmbH) Hamburg (previously: Berlin) 100.0 D+S address GmbH
D+S communication center Augsburg GmbH Augsburg 100.0 D+S cc Augsburg GmbH
D+S communication center Bremerhaven GmbH (previously:
D+S europe Communication Center Bremerhaven GmbH)
D+S communication center Frankfurt/Oder GmbH (previously:
D+S europe Communication Center Frankfurt/Oder GmbH)
Bremerhaven
(previously: Hamburg) 100.0
Frankfurt/Oder
(previously: Hamburg) 100.0
D+S cc
Bremerhaven GmbH
D+S cc
Frankfurt/Oder GmbH
D+S communication center Gera GmbH Hamburg 100.0 D+S cc Gera GmbH
D+S communication center Hamburg GmbH
(previously: D+S europe Hamburg GmbH) Hamburg 100.0
D+S communication center Itzehoe GmbH (previously:
D+S europe Communication Center Itzehoe GmbH)
Itzehoe
(previously: Hamburg) 100.0
D+S communication center management GmbH Hamburg 100.0
D+S cc
Hamburg GmbH
D+S cc
Itzehoe GmbH
D+S cc
management GmbH
D+S communication center Münster GmbH Münster 100.0 D+S cc Münster GmbH
D+S communication center Parchim GmbH (previously:
D+S europe Communication Center Parchim GmbH)
D+S communication center Rügen GmbH
(previously: cca24-akademie GmbH)
Parchim
(previously: Hamburg) 100.0 D+S cc Parchim GmbH
Lietzow
(previously: Augsburg) 100.0 D+S cc Rügen GmbH
D+S e-commerce GmbH Hamburg 100.0 D+S e-commerce GmbH
D+S solutions GmbH Itzehoe 100.0 D+S solutions GmbH
dtms Deutsche Telefon- und Marketing Services GmbH Mainz 100.0 dtms GmbH
Heycom GmbH (previously : D+S e-commerce GmbH,
previously : qualitycube GmbH)
Garbsen (previously: Hamburg,
previously: Bremerhaven) 100.0 Heycom GmbH
mobileview GmbH Hamburg 100.0 mobileview GmbH
NewTex GmbH Hannover 100.0 NewTex GmbH
Rate One GmbH Neu-Isenburg 100.0 Rate One GmbH
11899 Auskunft Service GmbH Hamburg 84.8 11899 GmbH
D+S inkasso GmbH (previously: D+S europe inkasso GmbH) Hamburg 51.0 D+S inkasso GmbH
International:
ASP Software GmbH Salzburg, Austria 100.0 ASP Software
atms Telefon- und Marketing Services GmbH Wien, Austria 100.0 atms GmbH
ctms s.r.o Prag, Czech Republic 100.0 ctms s.r.o
D+S communication center Praha s.r.o
(previously: D+S europe czech s.r.o) Prag, Czech Republic 100.0 D+S cc Praha s.r.o

Hereinafter abbreviations for the companies will be used as shown in the table above.
Kiwilogic.com AG, Hamburg and its subsidiary were included in the consolidated financial
statements at equity (34.1%).
mobileworx trading GmbH, Neumarkt am Wallersee (Austria) (share in the capital: 65.0%),
mobileview Iberica SL, Madrid (Spain) (share in the capital: 100%), MCH Mobile Consult
Hamburg GmbH, Hamburg (share in the capital: 100%), H&H Fulfillment GmbH & Co. KG,
Osnabrück (share in the capital: 50%), as well as Gate 118 GmbH, Hamburg (share in the capital:
44%), were not included in the consolidated financial statements due to insignificance.
3 Changes in Consolidated Companies
By contract of March 26, 2007 D+S europe AG acquired all shares of Heycom GmbH, of
Heycom e-logistics GmbH, Garbsen, of ASP Software GmbH as well as 50% of the business
interests in H&H Fulfillment GmbH & Co. KG, Osnabrück, (hereinafter called “Heycom
Group”). The shares were taken over by D+S europe AG on July 2, 2007 (initial consolidation).
By contracts of August 29, 2007 Heycom GmbH and Heycom e-logistics GmbH were then
merged with D+S e-commerce GmbH (previously: qualitycube GmbH) retroactively with effect
from January 1, 2007 whereupon D+S e-commerce GmbH was renamed Heycom GmbH
and its seat relocated to Garbsen.
D+S europe AG acquired the Heycom Group at a fixed purchase price of EUR 76.10 million in
cash regardless of results-related earn out components. Additional acquisition costs incurred in
the amount of EUR 57.5 million. This amount includes the counter value of 3,500,000 shares
(market price: EUR 10.70/share; current value: EUR 37.45 million) issued in the course of a
capital increase executed in June 2007, an estimated variable purchase price component (earn out)
of a maximum of EUR 18.7 million which would be due in 2009 and is closely linked to the performance
of the Heycom Group in 2008, as well as additional acquisition costs of EUR 1.3 million.
87

88 notes on the Consolidated finanCial statements
Initial consolidation of Heycom GmbH, Heycom e-logistics GmbH and ASP Software GmbH
was based on the following book and current values:
Book Values
thousands EUR
Current Values
thousands EUR
Assets 6,451 47,492
Deferred tax assets 162 162
Receivables/other current assets 14,669 14,669
Liquid assets 1,939 1,939
Deferred tax liabilities -614 - 17,130
Other debts - 10,421 - 10,421
Shareholders’ equity 12,186 36,711
Acquisition costs 133,574
goodWill 96,863
Follow-up acquisition costs in the amount of EUR 15,716,000, incurred after initial consolidation
and resulted in an increase in goodwill.
Essential factors creating economic value for the acquisition costs were the client base of the
Heycom Group, its own software developed for their business transactions as well as the value
of the companies’ employees. Value of the employees was not shown separately from goodwill.
Goodwill is based on assessment of the future earnings performance in e-commerce business.
With regard to the description of the Heycom Group’s field of activity and earnings achieved in
the second half of 2007 we refer to segment reporting stated below.
The acquisition of the Heycom Group shares was performed – as in previous acquisitions of
D+S europe AG – by way of mixed financing composed of equity as well as outside capital components.
On the equity side, nominal capital was increased by a total of nominally EUR 5.5
million to finance the Heycom Group acquisition. Approximately EUR 60 million, i.e. almost
45% of reported total acquisition costs are covered by outside financing in the framework of
a syndicated loan agreement under lead management of Deutsche Bank AG and Dresdner
Kleinwort. For this purpose D+S europe AG expanded its scope for outside financing considerably
in March 2007. The funding volume for the Group provided under lead management
of Deutsche Bank AG and Dresdner Kleinwort now amounts to a total of EUR 125.8 million
as opposed to the previous amount of EUR 68.0 million.
The variable purchase price component will be essentially financed from cash flow of the
D+S europe Group in 2009. The Heycom Group will be legally incorporated into the Group
in such a way that earnings as well as liquidity flows will be allotted to the parent company
by means of control and profit transfer agreements.

At the time of acquisition on August 1, 2007, D+S europe AG took over further 25.2% of stake
in 11899 GmbH. Correspondingly, 11899 GmbH will be fully consolidated as of August 1, 2007.
Moreover, D+S cc Augsburg GmbH acquired further 30.6% of stake in 11899 GmbH as of
September 1, 2007.
The acquisitions of interests in 11899 Auskunft Service GmbH led to acquisition costs in cash
in the amount of EUR 2.2 million. Essential factors creating economic value for goodwill were
synergy potentials completing the service portfolio of D+S europe AG.
The acquisition of 11899 GmbH was based on the following current values which did not deviate
from book values:
11899 Auskunft Service GmbH’s field of activity focuses on value-oriented distribution of
incoming calls on the basis of the caller’s telephone number. The company’s contribution to
consolidated income/loss amounted to EUR 33,000 in August and September 2007.
If Heycom Group and 11899 GmbH had been acquired on January 1, 2007, consolidated revenues
or annual Group surplus would have been EUR 26.9 million or EUR 1.0 million higher.
In order to concentrate IT competencies within the D+S Group, dtms solutions GmbH, Mainz
was merged with D+S solutions GmbH after acquisition of the missing 34.4% of 100% of the
interests in the company.
Further additions concerned the new foundation of the following subsidiaries of D+S europe AG
in which D+S europe AG holds a 100% stake:
• D+S cc Gera GmbH,
• D+S cc management GmbH,
• D+S e­commerce GmbH.
11899 GmbH
thousands EUR
Proportional shareholders’ equity -3,690
Acquisition costs 3,106
goodWill 6,796
By contract of June 28, 2007 D+S europe AG sold 100% of interests in D+S europe polska Sp.
z.o.o, Warsaw (Poland) by way of so-called management buy-out at a purchase price of EUR 1.
As of now, a cooperation agreement exists with the company.
89

90 notes on the Consolidated finanCial statements
By contract of May 24, 2007, dtms GmbH sold 67.4% of its stake in Deutsche Gesellschaft für
Absatz förderung mbH, Hannover (DGfA GmbH) by way of so-called management buy-out at a
purchase price of EUR 0.6 million.
4 method of Consolidation
Capital consolidation of the company’s fully consolidated subsidiaries was executed as of the
respective date of their acquisition or foundation (initial consolidation) using the revaluation
method. The costs of acquisition were offset against the respective share of equity of the subsidiaries.
Where applicable, debit differences were shown in the balance sheet item “Goodwill”.
Shares in non-consolidated affiliated enterprises were reported at acquisition costs. Participations
in associated companies were entered in the consolidated financial statements on the
basis of at-equity valuation.
Insofar as non-related parties hold an interest in consolidated companies, their respective
shares of shareholders’ equity and annual result of the respective company are shown under
“Other Partners”.
Receivables/payables, inter-company sales and income/expenses among consolidated companies
were offset against one another by consolidation of debts and revenue/expense. Intermediate
inter-company profits resulting in capitalization were eliminated.
5 aCCounting and valuation methods
If required, the annual financial statements of D+S europe AG and its consolidated subsidiaries
were adjusted in order to align accounting and valuation methods with those of the Group.
Assets and liabilities are classified according to dates due.
The full-cost method was used for preparation of the profit and loss account.
The basic accounting and valuation methods applied to draft these consolidated financial
statements are listed below and – unless stated otherwise – are subject to the same principles
as in the previous year.
Cash and cash equivalents include cash assets and short-term bank deposits and are entered
at face value.

Trade receivables and other current assets are valued at amortizing costs. Due to their shortterm
nature they do not differ from nominal value or acquisition costs. Specific value adjustments
were made in the adequate amount by balance sheet date.
Inventories are carried at production costs or the lower realizable net sales price less arising costs.
Securities are classified as held for sale, entered on the day of contract conclusion and valued
at their attributable current value when posted and in revaluations. Gains or losses from
revaluations at current value to be attributed are shown in Other Operating Income or Other
Operating Expenses. The attributable current value corresponds to market price.
Deferred taxes are assessed for different valuation rates of assets and liabilities in compliance
with IFRS and German tax legislation as well as for future realizable losses carried forward.
Taking into account trade income tax, corporation tax and the solidarity surtax, a tax rate of
40% is anticipated. By resolution of the Bundesrat (German Federal Council) on July 6, 2007,
the corporate tax reform 2008 was adopted which, apart from a few further amendments, will
also modify regulation governing the determination of taxable income and tax rates for corporate
income and trade tax in Germany as of 2008. For this reason stocks of deferred taxes in the
consolidated financial statements of D+S europe AG for December 31, 2007 were examined
with regard to which part of deferred taxes will be used up or released after December 31, 2007
thus being affected by the new taxation. This part of inventories has been subjected to revaluation
at a tax rate of about 30%.
Intangible and tangible assets are shown at historical cost less regular amortization and depreciation.
Regular amortization and depreciation is calculated on a straight-line basis over the
estimated useful life of the assets described in the following:
• Technical equipment and machinery (5­15 years)
• Other fixtures and equipment (5­15 years)
• Development costs carried as assets (5 years)
• Other intangible assets (2­10 years)
In compliance with IAS 38 development costs are entered as Intangible Assets provided the
developed products are likely to generate future economic value for the Group.
Goodwill resulting from acquisitions is entered in an amount of the difference between acquisition
costs and equity capital of the acquired enterprises unless assigned to other assets. Up
to December 31, 2003, goodwill was amortized over a period of five years. As of January 1, 2004,
regular amortization of goodwill has no longer been carried out in compliance with IFRS 3,
but has been subjected to an impairment test at least once a year which can result in devaluation
(impairment only approach). In the business year 2007 no exceptional amortization
was required.
91

92 notes on the Consolidated finanCial statements
Financial assets were entered at acquisition costs or at lower attributable current value.
Liabilities are stated at amortizing costs.
Interest-bearing bank loans and other current bank liabilities are reported at the received
amount paid out, reduced by transaction costs plus accumulated interest liabilities.
For accounting and valuation of financial instruments we refer to explanations on IFRS 7.
In the assessment of provisions all identifiable risks and other uncertain liabilities are taken
into account in the necessary amount.
Governmental investment subsidies were shown under deferred income in the amount granted,
reduced by releases corresponding to expenses accrued over a period of two to five years.
Existing leasing agreements are to be valued partly as “Operate Lease” and partly as “Financial
Lease”. In compliance with IAS 17, in the case of Operate Leasing paid leasing rates are taken
into account as expenditure at the date of their accrual. Leased items qualified as Financial
Leasing are entered as assets at attributable current value or at the lower cash value of the
minimum leasing payments, and are depreciated on a straight-line basis over their regular useful
life or the shorter period of the leasing contract. Correspondingly, liabilities resulting from the
leasing contract are shown on the liabilities side, reduced by the total redemption amount of
leasing rates repaid. The methods for depreciation correspond to those for similar assets.
Income and expenditure are shown in the profit and loss account when there has been an
increase/decrease in future economic value in connection with an increase/decrease in the
value of an asset or an increase/decrease in a liability that can be reliably determined.
Financial statements of foreign subsidiaries are converted according to the principle of a functional
currency. The balance sheets are converted at middle rate on balance sheet date and
the profit and loss account at annual middle rate. Differences from currency conversion for
assets and debits compared to previous-year conversion as well as conversion differences between
balance sheet and profit and loss account are classified as equity capital.
In the individual financial statements of the subsidiaries, receivables and liabilities in foreign
currencies are valued at the applicable conversion rate on balance sheet date. Profits and
losses resulting from the conversion are included as net income.
Effects resulting from currency conversion are inessential to the consolidated financial statements.

As of December 31, 2006 D+S europe AG has classified stakes in the capital of 11899 Auskunft
Service GmbH (29%) as assets held for sale (in accordance with IFRS 5), since less than 20% of
the interests are intended to be held permanently. The original intention to sell was abandoned
in the business year 2007 so that in compliance with IFRS 5, at-equity balancing of the 29%
interest was executed retroactively until full consolidation on August 1, 2007. The previous-year
values were adjusted in accordance with IFRS 5. Due to the loss 11899 GmbH sustained in
2006 the financial results were reduced by EUR 920,000 from the losses in the at-equity participation.
Correspondingly, the item “non-current assets held for sale”, shown in the previous
year, was reduced by EUR 920,000.
In the business year 2007 D+S europe AG changed the accounting method in view of the
treatment of contractual agreements with its employees. In comparison with the previous year
this leads to non-recognition of an intangible asset. The new accounting method was applied
retroactively for previous years. In comparison with the accounting and valuation method
previously applied, the new accounting method results in personnel costs EUR 0.1 million lower
than in the previous year. If the asset value had been entered on December 31, personnel costs
would have been EUR 0.1 million lower and earnings per share would have been EUR 0.02
higher. This results in the following effects for the individual items of the profit and loss
account, the balance sheet and earnings per share for the periods shown in the statement:
Profit and Loss Account
2007
thousands EUR
2006
thousands EUR
Personnel expenditure 1,032 - 122
Earnings before taxes - 1,032 122
Income taxes 413 - 49
Earnings after taxes - 619 73
Earnings per share in EUR
diluted - 0,02 0,00
undiluted - 0,02 0,00
Balance Sheet
Other assets - 1,859 - 827
Shareholders’ equity 1,115 496
Tax provisions 744 332
The accumulated earnings effect after taxes from periods, which are not shown, amounts to
EUR 569,000. This amount was offset against the opening balance of revenue reserves as of
January 1, 2006.
93

94 notes on the Consolidated finanCial statements
6 disCRetionaRy judgment as well as estimates and assumptions
essential discretionary leeway of management
When applying the described accounting and valuation methods Management must judge
issues, make estimates and assumptions with regard to the carrying amounts of assets and
debts, which cannot readily be established from other sources. Estimates and their underlying
assumptions result from past experience as well as further factors considered relevant. Actual
values may deviate from the estimates. Assumptions on which estimates are based are subject
to regular examination. Changes to estimates, provided they only relate to one period, are
taken into account for this period only; if they concern the current as well as following reporting
periods, they are included in the current and the following periods.
estimates and assumptions
In the following discourse, discretionary judgment is shown as used by the Board when applying
the company’s accounting and valuation methods, resulting in the annual financial statement
with regard to the amount of disclosure. The most important future-related assumptions as
well as other essential sources of estimate uncertainty on balance sheet date are stated below,
which can lead to the considerable risk that, within the next business years, reported assets
and debts might have to be adjusted.
• Decline in goodwill
At least once a year the Group examines whether goodwill has declined in value. This
requires estimation of the utility value of units generating payment instruments and which
goodwill is allotted to. For establishing the utility value the Group must estimate the
expected future cash flow from units generating payment instruments and, in addition,
select an adequate discounting rate in order to determine the cash value of this cash flow.
On December 31, 2007 the carrying value of goodwill amounted to EUR 215.6 million
(PY: EUR 94.0 million).
• Trade receivables and other claims
Allowance of doubtful claims involves a considerable degree of estimation and assessment of
individual claims and depends on the client’s credit worthiness, current cyclical trends and
the analysis of historical bad debt losses on the basis of a total inventory of receivables. As of
December 31, 2007 and 2006 total allowance for bad debt from trade receivables amounted
to EUR 2,607,000 and EUR 1,418,000.
• Provisions
Determination of provisions for legal disputes involves a considerable degree of assessment.
Recognition and valuation of provisions and the amount of contingent liabilities with regard
to pending suits or other outstanding claims from composition, conciliation, arbitration or
public proceedings, or other contingent debts involve estimation to a considerable degree.

Thus appraisal of the probability that a pending law suit is successful or liability arises, or
determination of the possible amount of the payment obligation is based on an evaluation
of the situation in question. For liability purposes provisions are built up for losses from
pending transactions, when loss is probable and this loss can be reliably estimated. Due to
uncertainty involved in this estimation actual losses can possibly deviate from the original
estimates and thus from the amount of provisions. Moreover, determination of provisions for
taxes, environmental liabilities and legal risks involves a considerable degree of estimation.
These estimations are subject to change arising from new information. For gathering new
information the company uses internal experts as well as external consultants. Changes of
estimates can have significant effects on the future earnings situation.
• Determination of current value of financial assets to be attributed
Current values of financial assets and financial liabilities to be attributed were established
as follows:
Attributable current value of financial assets and financial liabilities under standard maturity
periods and terms, which are traded on active liquid markets, is determined according to
quoted market prices. Attributable current value of other financial assets and financial
liabilities (without derivative financial instruments) is determined in accordance with generally
accepted valuation models based on discounted cash flow analyses and resorting to
observable current market transactions. Attributable current value of derivative instruments
is calculated using quoted prices. If such prices are not available, use is made of discounted
cash flow analyses applying respective yield curves for the duration of the instruments for
derivatives without optional components, and of option models for derivatives with optional
components. These estimates including the methods applied can have effects on the determination
of the current value to be attributed.
B. notes on the BalanCe sheet
7 Cash and Cash equivalents
Dec. 31, 2007
thousands EUR
Dec. 31, 2006
thousands EUR
Deposits with financial institutions 23,147 11,381
Cash assets 29 18
total 23,176 11,399
Deposits with financial institutions currently earn interest at rates of up to 4.07% p. a. and
have a residual maturity term of less than one year. Interest rates vary depending on the market
situation. Additional information is provided in the cash flow statement.
95

96 notes on the Consolidated finanCial statements
8 tRade ReCeivaBles
Dec. 31, 2007
thousands EUR
Most trade receivables have short terms to maturity; for this reason their book values correspond
to current values to be attributed on balance sheet date.
The age profile of due trade receivables without bad debt charge is composed as follows:
In the year under review, impairments showed the following development:
Dec. 31, 2006
thousands EUR
Receivables at amortizing costs 93,914 75,626
Allowances for bad debt - 2,607 - 1,418
total 91,307 74,208
Jan.1
thousands EUR
non-delinquent
thousands EUR
Additions
thousands EUR
delinquent for
up to 180 days
thousands EUR
Used up
thousands EUR
delinquent for
180 to 360 days
thousands EUR
Cancellation
thousands EUR
delinquent
for over 360
thousands EUR
Receivables at face value
on Dec. 31, 2007 32,578 47,204 4,016 7,509 *
Receivables at face value
on Dec. 31, 2006 23,429 41,917 3,721 5,141
* Of which paid in January 2008: EUR 2.3 million
Dec. 31
thousands EUR
2007 1,418 1,409 38 182 2,607
2006 2,200 523 178 1,127 1,418
The stock of allowances for bad debt is stated in the balance sheet on separate accounts.
Specific loss allowances are stated in the profit and loss account in the item Other Operating
Expenditure, cancellations are shown in the item Other Operating Income.
The maximum credit risk exposure on closing date is the value to be attributed to trade receivables
on balance sheet date.

9 inventoRies
Inventories essentially concern basic, auxiliary and operating items, projects in progress and goods.
10 otheR CuRRent assets
Other current assets essentially concern claims against the revenue office in the amount of
EUR 4,882,000 (PY: EUR 1,059,000), receivables from personnel in the amount of EUR 422,000
(PY: EUR 1,027,000), investment and payroll subsidies EUR 4,463,000 (PY: EUR 155,000),
interest rate hedging in the amount of EUR 484,000 (PY: EUR 592,000) as well as a loan to
11899 GmbH in the amount of EUR 0 (PY: EUR 2,280,000).
11 defeRRed taX assets
The item shown as of December 31, 2007 essentially consists of deferred tax assets arising from
accumulated deficits of D+S europe AG. A tax rate of about 30% (PY: 40%) was applied. On
the basis of projected operating results in accordance with corporate planning, deferred tax
assets on losses carried forward will essentially be realized within the next two years.
Deferred tax assets are assigned to the following items:
Dec. 31, 2007
assets
thousands EUR
Dec. 31, 2007
liabilities
thousands EUR
Dec. 31, 2006
assets
thousands EUR
Dec. 31, 2006
liabilities
thousands EUR
Tax losses carried forward 8,177 0 14,306 0
Fixed assets 123 14,277 989 3,281
Other assets 0 650 331 43
Liabilities 2,183 0 668 0
total 10,483 14,927 16,294 3,324
Deferred taxes of EUR 118,000 (PY: EUR 32,000) result from capital increase costs directly
credited to shareholders equity.
Tax losses carried forward and not shown in the balance sheet as deferred tax assets amounted
to EUR 7.0 million (PY: EUR 7.0 million) for corporate income tax purposes, and EUR 2.2
million (PY: EUR 2.2 million) for trade tax purposes, which for a large part cannot be used in
the near future due to a tax integration group.
97

98 notes on the Consolidated finanCial statements
12 non-CuRRent assets
Changes in individual items of fixed assets for the business years 2006 and 2007 are shown in
the asset history sheet (Annex 1.6).
13 goodwill
Segment
The changes result from the acquisitions of the Heycom Group, 11899 GmbH as well as from
earn out obligations initially only estimated.
14 tRade payaBles
This item reflects liabilities arising from normal business activities.
15 CuRRent liaBilities to Banks
Cash-
generating unit Jan.1, 2007
thousands EUR
Changes
thousands EUR
Dec. 31, 2007
thousands EUR
D+S e-commerce &
fulfillment services Heycom Group 0 112,579 112,579
D+S mobile & telephony services dtms sub-group 67,759 1,769 69,528
D+S mobile & telephony services mobileview 12,497 1,636 14,133
D+S communication &
collection services
Communication
Center 13,079 5,212 18,291
D+S communication &
collection services D+S address 491 0 491
D+S communication &
collection services D+S solutions 150 420 570
total 93,976 121,616 215,592
This item reflects current accounts and short-term loans in the amount of EUR 10,111,000
(PY: 9,379,000) which bear interest of between 5.70% and 10.00% p. a. Interest rates are
adjusted variably by the banks depending on the market situation. Moreover, this item includes
redemption in the amount of EUR 7,543,000 from long-term loans due in 2008 as well
as interest payments resulting from these loans in the amount of EUR 2,655,000.

16 otheR CuRRent liaBilities
17 liaBilities to doRmant paRtneRs
A minority interest in the parent company of EUR 767,000 (PY: 767,000) is held by Mittelständische
Beteiligungsgesellschaft Schleswig-Holstein mbH, Kiel and was taken over as financing
component in the context of the merger with conTakt KG. The Annual General Meeting of
June 25, 2003 approved of the dormant equity holding. It was registered with the Registry of
Commerce on July 18, 2003. Another dormant equity holding in D+S cc Augsburg GmbH in
the amount of EUR 500,000 (PY: 527,000) is held by BayBG Bayerische Beteiligungsgesellschaft
mbH, Munich.
18 CuRRent defeRRed inCome
Dec. 31, 2007
thousands EUR
Dec. 31, 2006
thousands EUR
Liabilities from purchase of affiliated companies earn out 7,500 0
Outstanding invoices received 7,032 457
Earn out performance liabilities from overtime and holidays 3,960 4,568
Turnover tax 2,662 798
Liabilities from overtime and holidays 1,432 424
Payroll liabilities 1,328 894
Interest rate swaps 697 782
Debtors with credit balances 652 635
Payroll tax 512 921
Professional association 413 255
Compensatory payments 263 730
Other financial liabilities 3,426 2,368
total 29,877 12,832
This item essentially shows investment and payroll subsidies carried as liability in the amount of
EUR 3,775,000 and proceeds in the amount of EUR 1,597,000 (PY: EUR 1,056,000) from Sale
and Lease Back as well as hire purchase agreements released over the contract period in compliance
with IAS 17 and 18.
99

100 notes on the Consolidated finanCial statements
19 pRovisions
Provisions for earn out concern possible earn out for the year 2008 to the alienators of the
Heycom Group.
20 CuRRent finanCial liaBilities
This item reflects the short-term component of liabilities in the amount of EUR 5,405,000
(PY: EUR 3,239,000) from Sale and Lease Back as well as hire purchase reported incompliance
with the regulations of IAS 17.
21 non-CuRRent liaBilities to CRedit institutions
This item reflects a total of ten loans minus transaction cost immediately attributable:
Amount
thousands EUR
Loan I – II 80,250
Loan III – IV 25,031
Jan.1, 2007
thousands EUR
Usage
thousands EUR
Interest Rate Maturity Redemption
Euribor plus margin
according to debt ratio Mar. 29, 2013
Euribor plus margin
according to debt ratio
Sept. 30, 2013
half-year installments graduated
EUR 1,000,000 – 6,000,000 voluntary
unscheduled repayment possible
due at maturity, voluntary
unscheduled repayment possible
Loan V – VI 255 5.96% fixed interest rate July 31, 2012 variable repayment
Loan VII – X 299 5.05 - 8.33%
Release
thousands EUR
Addition
thousands EUR
Dec. 31, 2007
thousands EUR
Earn out 2,583 2,583 0 34,475 34,475
Variable remuneration components 283 283 0 382 382
total 2,866 2,866 0 34,857 34,857
Mar. 31, 2008
Dec. 31, 2009
June 30, 2013
Mar. 31, 2013 half-year installments

type and method of collateral:
Loans I-IV: Pledging of all D+S AG’s shares in its subsidiaries, global assignment of trade receivables,
assignment of all claims arising from loans of D+S AG to subsidiaries, transfer by way of
security of equipment and machinery with the exception of EDP hardware of D+S europe AG.
Loans V-VI: transfer by way of security of fixed assets, global assignment of trade receivables.
Loans VII-X serve to create further full-time jobs in the course of the program “Capital for Work” in
cooperation with KfW and are handled by Mainzer Volksbank as well as Commerzbank AG, Berlin.
The collaterals described are entered in the balance sheet with the following book values:
Pledging of all shares in consolidated subsidiaries
Book Value
thousands EUR
85,263
Pledging of all shares in mobileview AG 19,870
Pledging of 40% of the business interests in atms GmbH 3,562
Global assignment of trade receivables 24,878
Assignment of all existing and future loan claims against the following subsidiaries:
dtms GmbH, D+S cc Bremerhaven GmbH, D+S cc Frankfurt/Oder GmbH,
D+S cc Itzehoe GmbH, D+S cc Parchim GmbH, D+S cc Münster GmbH,
D+S cc Hamburg GmbH, D+S e-commerce GmbH, D+S address GmbH 22,865
Transfer by way of security of D+S europe AG’s equipment and machinery
on the company’s premises with the exception of ECP hardware
Fixed liability guarantee for claim of banks against dtms GmbH in the amount
of thousands EUR 12,650 –
Assignment of various potential claims in connection with the acquisition
of the shares in dtms AG as well as mobileview AG –
590
101

102 notes on the Consolidated finanCial statements
22 ConveRtiBle Bonds
By end of the reporting period, convertible bonds from an issuance affected in the business
year 2000 at face value of EUR 132 (PY: EUR 6,926) had been issued. At the time of maturity,
the convertible bonds entitle bearers, at their discretion, to either claim repayment of the face
amount or to subscribe to the number of shares whose nominal value corresponds to face
value. The conversion rate per share is based on the difference between the arithmetic mean of
XETRA closing prices for D+S europe AG’s shares on the last ten trading days preceding the
issue of the convertible bonds plus a surcharge of 15% and EUR 1.00 of the face value per share.
23 paRtiCipatoRy Capital
With resolution of the Annual General Meeting of June 7, 2006 and with consent of the
Supervisory Board, Management was authorized to issue profit participation rights once or
repeatedly by June 6, 2011 with a maturity of up to 15 years and a total face value of up to
EUR 15.0 million. Profit participation rights issued due to this authorization must not be endowed
with conversion or option rights to shares in the company, participation bonds, or new
profit participation rights. By December 31, 2007 Management of the company issued profit
participation rights in the amount of EUR 11 million (PY: EUR 11 million). This participatory
capital was used for redemption of a subordinated loan in the amount of EUR 10 million plus
repayment penalty. The subordinated loan has an interest rate of between 11.75% and 13.75%
when maturing in 2012. With a maturity date of December 30, 2013, the profit participation
capital has interest rates of between 7.75% und 8%.
24 non-CuRRent aCCRued items and defeRRed inCome
This item reflects proceeds in the amount of EUR 1,537,000 (PY: EUR 1,631,000) from Sale and
Lease Back and hire purchase agreements released over the contract period in compliance with
IAS 17 and IAS 18.

25 otheR non-CuRRent finanCial liaBilities
This item reflects the long-term part of liabilities in the amount of EUR 5,337,000
(PY: EUR 5,112,000) balanced as Sale and Lease Back and hire purchase in compliance with
the regulation laid down in IAS 17.
Minimum payments for liabilities from financial leasing have the following maturity:
26 otheR paRtneRs
Nominal value
thousands EUR
Discount value
thousands EUR
Cash value
thousands EUR
Payable in one year 5,405 175 5,230
Payable in 1-5 years 5,046 561 4,485
total 10,451 736 9,715
thousands EUR
As of January 1, 2007 325
Additional purchase of business interests in
dtms solutions GmbH and 11899 GmbH
- 1,086
Sale of business interests in Deutsche Gesellschaft für Absatzförderung mbH - 401
Income/loss outside partners 2007 158
Sub-total - 1,004
Add carry negative minority interests 1,004
as of december 31, 2007 0
103

104 notes on the Consolidated finanCial statements
27 suBsCRiBed Capital, Conditional Capital and Capital ReseRve
In the year under review subscribed capital and capital reserve (including the capital invested
for implementing the agreed capital increase) developed as described below:
subscribed capital
In the business year 2007 at total of 3,548,148 shares were issued from authorized capital
against contribution in kind and at total of 2,892,000 shares against contribution in cash.
In the first quarter of 2007 a total of 1,642,000 no-par shares were issued from authorized
capital against contribution in cash in connection with the acquisition of the interests in the
Heycom Group, and in the second quarter a total of 350,000 shares were issued. The transactions
were entered in the Commercial Register on March 30, 2007 and on June 22, 2007.
Moreover, in the second quarter of 2007, a total of 3,500,000 shares were issued from authorized
capital in the course of a capital increase against contribution in kind. This capital increase
in kind was entered in the Commercial Register on July 6, 2007.
The capital increases are components of the financing measure for the acquisition of the
Heycom Group (see “Changes in Consolidated Companies”).
In July 2007 a capital increase against contribution in cash through issuance of 900,000 shares
was executed to further strengthen the financing structure of the Group. This capital increase
for cash was registered in the Commercial Register on July 19, 2007.
Moreover, in July 2007 a total of 48,148 shares were issued in the course of a capital increase
against contribution in kind for settling an earn out obligation from the acquisition of a company
concluded in 2004. This transaction was entered in the Commercial Register on September
27, 2007.
The subscribed capital of December 31, 2007 is divided into 37,511,247 no-par common bearer
shares.
Up to June 6, 2011 Management of the company, with the consent of the Supervisory Board,
is authorized to increase the company’s capital stock once or repeatedly by up to a total of
EUR 7,403,883 through issuance of no-par common bearer shares.

capital invested for implementing the authorized capital increase
On entry in the Commercial Register on February 27, 2007, the amounts for 744,969 shares
shown in the previous year were transferred to the items of Subscribed Capital or Capital
Reserve.
conditional capital
Capital stock was conditionally increased by up to EUR 30,689 divided into up to 30,689
common bearer shares (Conditional Capital I). This conditional capital increase serves to
secure conversion rights to the bearers of convertible bonds whose issuance was authorized
at the Annual General Meeting on April 14, 2000, amended by resolution at the Annual
General Meeting on June 25, 2003. As the authorization period ended on March 31, 2005
convertible bonds cannot be issued any longer from Conditional Capital I.
The company’s capital stock was conditionally increased by another EUR 300,000 divided into
up to 300.000 no-par common bearer shares (Conditional Capital II). This conditional capital
increase serves to secure conversion rights to the bearers of convertible bonds whose issuance
was authorized at the Annual General Meeting on June 7, 2006. From Conditional Capital II
EUR 60,694 were used as provided by the authorization. The corresponding increase in capital
stock will be entered in the Commercial Register in the first quarter of 2008. The remaining
conditional capital in the amount of EUR 239,306 has become irrelevant due to expiration as
the authorization period related to the issuance of convertible bonds associated with Conditional
Capital II was limited to December 6, 2006 and authorization was not exercised.
capital reserve
The capital increase against contribution in cash in the course of the acquisition of the Heycom
Group as described under “Subscribed Capital”, resulted in an increase in capital reserve by
EUR 12.3 million in the first quarter (issue price EUR 8.50 per share), and an increase in capital
reserve by EUR 3.7 million in the second quarter (issue price EUR 11.60 per share).
The capital increase against contribution in kind in the course of the acquisition of the Heycom
Group, as described under “Subscribed Capital”, resulted in an increase in capital reserve by
EUR 33.9 million (issue price EUR 10.70 per share).
The capital increase against contribution in cash to further strengthen the financing structure,
as described under “Subscribed Capital”, resulted in an increase in capital reserve by EUR 9.5
million (issue price EUR 11.60 per share).
The capital increase against contribution in kind for payment of an earn out obligation from
2004, as described under “Subscribed Capital”, resulted in an increase in capital reserve by
EUR 510,000 (issue price EUR 11.60 per share).
105

106 notes on the Consolidated finanCial statements
28 additional infoRmation on deRivative finanCial instRuments
This section provides additional information and explains the importance of financial instruments
for the consolidated financial statements of D+S europe AG. For this purpose balance
sheet items including financial instruments are explained.
The following table shows the book values of all categories of financial assets and liabilities:
finanCial assets
Loans and receivables
Dec. 31, 2007
thousands EUR
Dec. 31, 2006
thousands EUR
trade receivables 91,307 74,208
other current assets – claims 4,477 2,730
financial assets 1,005 1,029
Assets available for sale 0 0
Financial assets valued as income at attributable current value
Other securities held for trading purposes 8,441 0
other current assets – derivatives 749 840
Cash and cash equivalents
liquid assets 23,176 11,399
total 129,551 90,206
finanCial liaBilities
Financial liabilities valued at amortizing costs
trade liabilities 29,116 29,522
liabilities to credit institutions 20,309 14,736
other current liabilities 25,330 9,346
liabilities to minority interests 1,267 1,294
other current financial liabilities (financing leasing) 5,405 3,239
bank loan 96,818 41,852
participatory capital 11,000 11,000
other non-current financial liabilities (financial leasing) 5,377 5,112
Financial liabilities valued as income at current attributable
other current liabilities – derivatives 697 782
total 195,319 116,883

The following table shows current values as well as book values of financial assets and liabilities
valued at acquisition or amortizing costs.
finanCial assets,
valued at acquisition or amortizing costs
Loans and receivables
Dec. 31, 2007
thousands EUR
Market value of cash and cash equivalents, current receivables, trade liabilities, other current
financial liabilities and other financial debts approximately corresponds to book value, in
particular due to the short maturity terms of such instruments.
Dec. 31, 2006
thousands EUR
Book Value Market Value Book Value Market Value
trade receivables 91,307 91,307 74,208 74,208
other current assets – receivables 4,477 4,477 2,730 2,730
financial assets 1,005 1,005 1,029 1,029
Cash and cash equivalents
liquid assets 23,176 23,176 11,399 11,399
total 119,965 119,965 89,366 89,366
finanCial liaBilities,
valued at acquisition or amortizing costs
trade liabilities 29,116 29,116 29,522 29,522
liabilities to credit institutions 20,309 20,309 14,736 14,736
other current liabilities 25,330 25,330 9,346 9,346
liabilities to minority interests 1,267 1,267 1,294 1,294
other current financial liabilities 5,405 5,405 3,239 3,239
bank loans 96,818 96,818 41,852 41,852
participatory capital 11,000 11,000 11,000 11,000
other non-current financial liabilities
(financial leasing) 5,377 5,377 5,112 5,112
total 194,622 194,622 116,101 116,101
107

108 notes on the Consolidated finanCial statements
D+S europe AG values long-term receivables bearing fixed and variable interest rates including
receivables from financial leasing on the basis of various parameters such as interest rates,
specific national risks, clients’ individual creditworthiness and the risk structure of the financing
transaction. This is the manner in which valuation allowances for expected bad debt losses
are made. Accordingly, book values of these receivables, minus the allowances established for
bad debts, approximately correspond to their market values as of December 31, 2007 and 2006.
D+S europe AG determines the market value of liabilities to credit institutions, of participatory
capital and liabilities from financial leasing (other long-term financial liabilities) by means
of discounting the expected cash flows at interest rates applied to similar financial debts with
comparable remaining maturity terms.
The financial assets and financial liabilities described in the following are “recognized as income
to be attributed at current value”, or, if they concern financial assets as “available for sales”
and are thus valued at their attributable current value on principle. D+S europe AG applies the
market value as market price in an active market if it exists.
finanCial assets ReCognized as inCome
at attRiButaBle CuRRent value
Dec. 31, 2007
thousands EUR
As a rule the company concludes derivative financing instruments as contracting partner with
“Investment Grade” rating. The market values of derivative financing instruments are established
depending on the type.
Dec. 31, 2006
thousands EUR
Book Value Market Value Book Value Market Value
other current assets – derivatives 1 749 749 840 840
finanCial assets ReCognized as inCome
at attRiButaBle CuRRent value
held for trading purposes other securities 2 8,441 8,441 0 0
finanCial liaBilities ReCognized as inCome
at CuRRent attRiButaBle value
other current liabilities – derivatives 1 697 697 782 782
1 This item shows the positive or negative market value of interest rate swaps and interest rate caps.
2 This item shows shares of a company which are traded at officially quoted exchange markets.

Market value of interest rate derivatives (e.g. interest rate swaps) is determined by discounting
of the expected future cash flows over the remaining term of contract on the basis of current
market interest rates and the yield curve. Interest rate options are stated at their market value
or at an estimated value based on an option price model.
Net profits (+) or losses (-) from financing instruments can be seen in the following table:
Net profits or losses in the item “loans and receivables” include changes in value adjustments,
gains or losses from removals as well as in-payments and write-up on originally amortized loans
and receivables.
Net profits and losses in “financial assets held for trading purposes” include changes in market
value of the quoted company shares in question.
hedging relationships
The group is essentially faced with financial risks from changes in interest on loans at variable
interest rate. Interest rate swaps and interest rate caps as well as combinations of interest rate
swaps and interest rate caps are used as hedging instruments. The Group does not apply hedge
accounting as not all hedging activities meet the relevant accounting requirements regarded as
hedging activities. Changes in the market value of hedging instruments are shown in the financial
results. As of balance sheet date, nominal volumes of the hedging instruments amounted
to EUR 91.0 million and the attributable current values amounted to EUR -0.2 million (= market
value). Market value corresponds to the amount that D+S europe AG would have to pay or
would receive if the hedging activities had been cancelled by balance sheet date. Market values
are the present values of the derivative financial instruments without consideration of opposite
performance of the underlying transactions. Market values of the applied derivative financial
instruments are established on the basis of quoted market prices and through mathematical
financially relevant calculations based on standard models. The valuation is based on generally
accepted valuation models (Black-Scholes, Heath-Jarrow-Morton). Valuation is shown in the
balance sheet under the item Other Assets and Other Liabilities.
Dec. 31, 2007
thousands EUR
Dec. 31, 2006
thousands EUR
Loans and receivables - 3,808 - 1,853
Assets available for sale - 108 58
Financial assets held for trading purposes and valued
as income at attributable current value 754 0
Financial liabilities valued at amortizing costs 0 0
Financial liabilities valued as income at attributable current value 86 - 782
total - 3,076 - 2,577
109

110 notes on the Consolidated finanCial statements
29 management of finanCial Risks
basic principles
Essential financial liabilities the Group has entered, with the exception of derivative financial
instruments, comprise bank loans and current account advances, debt securities, financial
leasing agreements, trade debts and hire-purchase agreements as well as loans granted. Main
purpose of these financial liabilities is to finance the Group’s inorganic expansion as well as
business activities. The Group has various financial assets such as trade receivables as well as
cash equivalents and short-term securities directly resulting from its business activities.
Furthermore, the Group also has derivative financial instruments such as interest rate swaps
and interest rate caps as well as combinations of these. Purpose of these derivative financial
instruments is to protect against interest rate risks resulting from the Group’s business activities
and its financing sources.
In compliance with corporate guidelines, derivatives were not traded in the business years 2007
and 2006 and will not be traded in future.
Essential risks arising for the Group from financing instruments include interest-rate related
cash flow risks as well as liquidity and credit risks. Currency risks are of lesser importance.
Management of the company decides strategies and procedures to control individual types of
risks which will be presented in the following discourse.
risks related to the capital market
Price fluctuations in the capital markets can result in lasting cash flow as well as profit risks for
D+S europe AG. Changes in interest rates as well as in share prices have an impact on operative
as well as investment and financing activities.
In order to respond to possible risks at an early stage and to optimize utilization of financial
resources within the Group, D+S europe AG providently identifies, analyzes and controls the
risks inherent to the capital market. First and foremost, the enterprise tries to control and
monitor these risks in the course of current business and financial activities. As described
above it controls the risks, if appropriate, also by means of derivative financial instruments.
Risk management related to the capital market is a central task of D+S europe AG’s Board.
This part of the complete risk management system is the Chief Finance Officer’s responsibility.
At top level, the Board of D+S europe AG bears overall responsibility and, for operational and
entrepreneurial reasons, it delegates responsibility to the units in charge.

Due to the limited number of risk positions to be controlled in this context, risk analysis and
risk management of D+S europe AG focus on observing the individual transactions. For this
purpose adequate sensitivity analyses are used as information basis drafted for reporting to the
Board by the units responsible. They narrow down the risk which can appear within the limits
of given assumptions if certain parameters are changed in a defined range. Risk assessment,
for instance, assumes a decline in share prices of all listed investments classified as “financial
assets available for sale” at short notice, parallel revaluation of the Euro against relevant
foreign currencies and a change in interest rates to be applied.
The resulting possible economic effects are estimations. They are based on the assumption that
the unfavorable market trends such risk analyses imply really occur. Moreover, also real or actually
expected effects of changes in the above mentioned parameters on the consolidated profit
and loss account are represented in these risk analyses in order to determine concrete as well as
potential effects on consolidated financial statements in time.
interest rate risks
The risk arising from fluctuations in current interest rates to which the Group is exposed mainly
results from long-term financial liabilities with variable interest rates. Interest rate expenditure
for the Group is controlled by means of a combination of fixed and variable interest rates on
outside capital. In order to achieve this target, the Group uses interest rate swaps and interest
rate caps or combinations of both as hedging instruments. As of December 31, 2007, taking
existing interest rate swaps into account, 77.6% (PY: 65.8%) of outside capital of the Group
bore fixed interest rates.
The following table shows the sensitivity of Group earnings before taxes compared with a
change in interest rates which is, under rational aspects, in principle possible (due to effects on
loans bearing variable interest rates). All other variables remain unaffected. There is no impact
on the Group’s shareholders’ equity.
Increase/Reduction
Basis Points
Effect on Earnings before Taxes
thousands EUR
2007 50 100
2007 - 50 - 100
2006 50 136
2006 - 50 - 136
111

112 notes on the Consolidated finanCial statements
share price risks
The securities portfolio of D+S europe AG contains direct investments in listed shares held by
the company for trading purposes. The enterprise monitors equity investments by means of
current market values. The securities portfolio consists of a value added in the business year
2007. Should the price rise or fall by 10%, this will result in an earnings effect before taxes in
the amount of EUR 844,000.
currency risk
Due to insignificant investments in countries outside the euro region, changes in foreign
exchange rates do not have essential effects on the consolidated balance sheet. About 90% of
the Group turnover is generated in EUROS; for this reason the Group is not subject to essential
currency risks. Consequently, the Group has not taken special measures to monitor the risk
arising from changes in exchange rates.
credit risk
The Group conducts business only with third parties worthy of credit. Moreover, inventories
of receivables are constantly monitored so that the Group is not exposed to the essential risk
of default. The maximum default risk is limited to the book value shown in information on
Receivables included in the Notes. The Group is not exposed to essential concentrations of
default risks.
The maximum credit risk in case of default of a contracting party for other financial assets of
the Group, such as cash and cash equivalents, financial assets available for sale, borrowers’
note loans and certain derivative financial instruments, corresponds to the book value of these
instruments.
liquidity risk
Liquidity risk for D+S europe AG exists where the company might not be able to meet its
financial obligations, for example, redemption of debts, payment of purchase obligations and
liabilities resulting from financial leasing. This risk is covered by an effective monitoring and
control system which includes the control of net working capital and other short-term nonoperative
liquidity in- and outflows. Here the duration of financial investments and financial
assets (e.g. receivables, other financial assets) is taken into account. Furthermore, access to
credit lines with renowned credit institutions and other forms of financing are checked with
regard to availability and costs. An essential goal is to secure financial flexibility and to limit
inappropriate refinancing risks.

The following table shows all contracted payment obligations consisting in redemption, repayment
and interest from reported financial liabilities as well as derivative financial instruments
as of December 31, 2007.
non-deRivative finanCial liaBilities
2008
thousands EUR
2009
thousands EUR
The risk of cash flows from the table is limited to outflow of cash. Liabilities from financial
leasing, trade liabilities as well as other financial liabilities mainly result from financing operative
assets used in operative business, such as fixed assets, and from investments within working capital
(e.g. inventories and trade receivables). These assets have to be taken into account in order
to control the overall liquidity risk effectively. The risk control system meets these requirements.
Liquidity of the company comprises cash and cash equivalents as well as influx of funds from
operative business activities. Capital resources, on the other hand, comprise redemption of
financial debts and interest payments, investments as well as current financing of operative
business activities.
2010 ff.
thousands EUR
2013 ff.
thousands EUR
trade liabilities 29,116 0 0 0
liabilities to credit institutions 20,309 0 0 0
other current liabilities 25,330 0 0 0
liabilities to dormant partners 130 897 673 0
other current financial liabilities (financial leasing) 5,405 0 0 0
bank loans 13,566 18,709 63,403 35,266
participatory capital 880 880 880 11,880
other non-current financial liabilities (financial leasing) 0 3,577 1,469 0
deRivative finanCial liaBilities 90 175 576 0
113

114 notes on the Consolidated finanCial statements
capital control
For capital control of the Group it is paramount to ensure high credit rating and a positive
equity ratio in order to support its business operations and to maximize shareholder value. The
Group controls its capital structure and makes adjustments, taking changes in the business
environment into consideration. In order to maintain or adjust its capital structure the Group
can adjust dividend payments to shareholders or repay capital to shareholders or issue new
shares. As of December 31, 2007 and December 31, 2006 no changes were made to the objectives,
guidelines and procedures. The Group monitors its capital by means of a gearing ratio
corresponding to the ratio of net financial debt and the total of equity capital and net financial
debt. According to corporate guidelines the defined gearing ratio must remain between 40%
and 50%. Net financial debt includes interest-bearing loans, trade debts as well as other debts
minus cash and short-term deposits. Shareholders’ equity comprises equity capital as stated
in the balance sheet.
C. notes on the pRofit and loss aCCount
30 Revenues
The item Gross Revenues shows invoiced fees for allocations from fixed and mobile networks
for scheduling as well as other services. Allocation fees include fees contents providers in the
“D+S mobile & telephony services” segment are entitled to for advances. These allocation fees
do not constitute revenues in compliance with IFRS; with regard to these fees the D+S europe
Group acts as an agent.
31 otheR opeRating inCome
2007
thousands EUR
2006
thousands EUR
Income from sale of stock options 2,955 0
Income from cancellation of liabilities 1,543 0
Income from sale of associated companies or deconsolidation
of affiliated companies 1,053 1,428
Income from reduction of specific and general loan loss allowances 742 0
Income from release of current liabilities 602 1,396
Public subsidies 401 168
Income from claims for compensation 400 0
Income from claims written-off 0 1,759
Other operating income 1,856 2,984
total 9,552 7,735

32 peRsonnel eXpendituRe
As of December 31, 2007 the Group employed 4,962 (PY: 3,583) staff (including temporary
workers: 5.930 employees). The average number of employees within the Group at the end of
the four quarters was 4,380 (PY: 3,251) employees.
33 otheR opeRating eXpenses
In the business year 2007 the following auditors’ fees arose in terms of Art. 314 Para. 1 No. 9
HGB (German Commercial Code):
34 finanCial Results
2007
thousands EUR
2006
thousands EUR
Sales expenses 23,356 13,805
Operating expenses 21,153 9,120
Administrative expenses 7,005 5,737
Other operating expenses 7,710 12,899
total 59,224 41,561
2007
thousands EUR
2006
thousands EUR
Closing and auditing costs 439 266
Other auditing expenses 574 60
Other costs 509 66
total 1,522 392
2007
thousands EUR
2006
thousands EUR
Other interest and similar income 933 594
Interest and similar expenses - 8,301 - 5,609
Exceptional financial write-offs 0 - 6
Losses from interest in at-equity participations 0 -920
total - 7,368 - 5,941
Interest expenses essentially concern interest on long-term financing in the amount of
EUR 7,055,000 of which EUR 880,000 consist of interest expenses for participatory capital as
well as short-term bank borrowings in the amount of EUR 1,246,000.
115

116 notes on the Consolidated finanCial statements
35 taXes fRom inCome and eaRnings
Earnings before income tax can be broken down into the following income tax expenditure:
36 minoRity inteRests
This item reflects the minority interests in earnings of 11899 GmbH as well as D+S inkasso GmbH.
37 eaRnings peR shaRe
2007
thousands EUR
2006
thousands EUR
Current taxes - 3,660 - 2,999
Deferred tax expenses/income - 6,993 - 589
total - 10,653 - 3,588
2007
thousands EUR
2006
thousands EUR
Earnings before income taxes 25,298 13,081
Theoretical tax expenditure (40%; PY: 40%) - 10,119 -5,232
Tax reduction due to tax-free income 368 1,781
Tax increase due to non-deductible expenses - 670 - 413
Tax reduction due to lower tax rates abroad 348 186
Changes in value adjustments of deferred tax assets 0 1,481
Devaluation of deferred tax assets due to changes in tax rate - 1,850 0
Other 1,270 - 1,391
taxes from income and earnings - 10,653 - 3,588
2007 2006
Consolidated earnings for the business year thousands EUR 14,487 9,575
Weighted average number of no-par shares,
undiluted units 34,727,554 30,188,704
Undiluted earnings per share EUR 0.42 0.32
Diluted consolidated earnings thousands EUR 14,487 9,575
Weighted average number of no-par shares,
diluted units 34,758,483 30,211,667
Diluted earnings per share EUR 0.42 0.32

Breakdown of number of shares:
38 Risks aRising fRom outside finanCing
Risks pertaining to changes in interest rates only exist with respect to the items explained under
15, 21 and 29.
d. Related paRties
2007
units
Weighted average number of no-par shares undiluted 34,727,554 30,188,704
Weighted average number of issued share options 30,929 22,963
Weighted average number of no-par shares diluted 34,758,483 30,211,667
39 infoRmation on Related individuals and Companies
In the year under review, essential transactions (transaction value > EUR 50,000) were carried
out with the following related enterprises:
• Plate & Partner GmbH & Co. KG, Bauabschnitt II, Itzehoe
• Wohnbau Klosterforst Plate & Partner GmbH, Itzehoe
• Wohnpark Klosterforst Management GmbH, Itzehoe
Parties with a substantial interest are members of the Supervisory Board
or the Management Board of D+S europe AG
• Lotterieeinnahme Plate, Hamburg
A party with an essential interest is member of the Board of D+S europe AG
2006
units
117

118 notes on the Consolidated finanCial statements
As of the end of the respective reporting periods, the following essential claims against and
liabilities to related companies or individuals were outstanding:
ReCeivaBles
Essential revenues from or sales to related companies or individuals:
2007
thousands EUR
2006
thousands EUR
Plate & Partner GmbH & Co. KG, Bauabschnitt II 10 0
Wohnbau Klosterforst Plate & Partner GmbH 9 0
Plate Büromaterial Vertriebs GmbH 3 0
11899 GmbH * 0 5,491
total 22 5,491
liaBilities
11899 GmbH * 0 172
total 0 172
* Related party until July 31, 2007
Type of Business
2007
thousands EUR
2006
thousands EUR
Markus Frengel sale of interests 1,643 570
Lotterieeinnahme Plate general services 1,393 1,806
Plate & Partner GmbH & Co. KG, Bauabschnitt II rent for office space 47 0
Plate & Partner EEKG general services 9 0
Plate Büromaterial Vertriebs GmbH general services 6 0
Wohnbau Klosterforst Plate & Partner GmbH rent for office space 2 0
conTakt Marketing im Dialog Verwaltungsgesellschaft mbH sales of interests 0 857
11899 GmbH * general services 0 425
total 3,100 3,658
* Related party until July 31, 2007

Essential purchases (especially services received) from related companies or individuals:
Type of Business
All transactions with related companies and individuals were carried out at normal prices as
invoiced in case of non-related parties.
2007
thousands EUR
2006
thousands EUR
Plate & Partner GmbH & Co. KG, Bauabschnitt II rent for Itzehoe location 233 198
Wohnbau Klosterforst Plate & Partner GmbH rent for Itzehoe location 103 249
Klaus Thiemann general consultancy 81 0
Thomas Hoffmann general consultancy 66 72
Wohnpark Klosterforst Management GmbH
cleaning of office space
Itzehoe location 64 37
Knut Foeckler general consultancy 44 0
Adler Palder Steuerberatungsgesellschaft mbH tax consultancy 43 53
Plate & Partner EEKG general services 24 0
Adler Palder Treuhand GmbH general services 12 0
Plate Büromaterial Vertriebs GmbH general services 2 0
FCF Fox Corporate Finance GmbH ** financial consultancy 0 526
11899 Auskunft Service GmbH * general services 0 148
Lotterieeinnahme Plate general services 0 11
total 672 1,294
* Related party until July 31, 2007
** Related party until December 31, 2006
119

120 notes on the Consolidated finanCial statements
e. otheR infoRmation
40 notes on the Cash flow statement
The cash flow statement shows changes in cash and cash equivalents of the Group in the course
of the business year as a result of cash outflows / inflows. In compliance with IAS 7, a distinction
is made between cash flows resulting from operating, investing and financing activities.
In the cash flow statement all bank deposits and liabilities due at short notice as well as cash
assets and available-for-sale securities were entered as currency.
Interest out-payments amounted to EUR 7,412,000 (PY: EUR 6,494,000), interest in-payments
totaled EUR 768,000 (PY: EUR 594,000). Tax payments amounted to EUR 4,454,000
(PY: EUR 1,674,000). In-payments from taxes totalled EUR 1,000 (PY: EUR 0).
41 segment infoRmation
The D+S europe Group is the leading German group-independent outsourcing provider for
e-commerce and customer contact management. By acquiring the Heycom Group in July 2007,
D+S europe AG succeeded in also acting as agent for physical goods. Complete e-commerce
transaction handling is provided in addition to the operation of online shops. Products which
are the center of the D+S europe Group’s business world do not exclusively have to reach the
customer via multi-media channels. From now on, D+S europe AG ensures that apart from
virtual products also physical goods are delivered to the customer. In the business year 2007, the
extension also resulted in a separate segment in compliance with IAS 14, as the success of this
field with its strong dependence on the development of the online market and here, in particular,
in the fashion trade is subject to market and business risks different from the two segments
shown in 2006. Consequently, since initial consolidation of the Heycom Group with effect from
July 2, 2007 separate reporting has been carried out for this new segment.
As in the previous business year, marketing of hardware and software products for mediumsized
businesses does not constitute a separate segment in terms of its business volume with a
turnover of EUR 4.5 million (PY: EUR 1.9 million ). Moreover, it only represents a geographical
segment as the D+S europe Group generates most of its turnover in Germany.

In the business year 2007, the turnover share of the largest individual client amounted to 13.1%
(PY: 4.5%) in terms of total turnover of the D+S europe Group.
As a consequence, the following fields are established as segments: “D+S mobile & telephony
services”, “D+S e-commerce & fulfillment services” and “D+S communication & collection
services”.
In the “D+S mobile & telephony services” segment D+S europe AG with its subsidiaries, the
dtms sub-group as well as mobileview AG, is positioned as network operator, as mobile application
service provider as well as billing specialist. Correspondingly, the service portfolio ranges
from provisioning and operation of service call numbers such as 0900 or 0180 to mobile services
for SMS/MMS, chats, gaming and downloads. The D+S europe Group is able to invoice all
services rendered by means of online and offline billing as well as Internet micro-payment.
The companies of the Heycom Group constitute the segment “D+S e-commerce & fulfillment
services”. In this business unit intelligent online-shop systems are provided as complete solutions
with individual services in the fields of sorting, warehousing, packaging and dispatch of goods
as well as return and debtor management. At present, this solution for the complete outsourcing
of online sales is especially in demand with the fashion industry. The segment was newly
established in the 2007 business year so that comparison with the previous year is not possible.
In the “D+S communication & collection services” segment (in the previous year “D+S customer
management services”) D+S europe AG with its nine national communication centers and one
in Prague and with D+S solutions GmbH as IT/TC provider for technologies and self-service
solutions is positioned as full service provider for comprehensive customer contact management.
Every year more than 40 million multi-media customer contacts are handled directly and
conclusively for renowned clients. Moreover, D+S address GmbH and D+S inkasso GmbH offer
the use of self-established or purchased address inventories to its clients mainly from the field
of communication center services.
Internal sales within the Group were carried out at normal prices as invoiced in case of third
parties.
121

122 notes on the Consolidated finanCial statements
segment report 2007
segment report 2006
D+S mobile &
telephony
services
thousands EUR
D+S
communication &
collection services
thousands EUR
D+S e-com -
merce & fullfilment
services
thousands EUR
Consolidation
thousands EUR
D+S europe
Group Total
thousands EUR
Revenues total 88,675 113,380 33,217 - 3,736 231,536
external 86,811 111,539 33,186 0 231,536
internal 1,864 1,841 31 - 3,736 0
segment eRnings (eBit) 13,112 13,531 6,023 0 32,666
Segment assets 162,209 81,962 218,257 - 56,753 405,675
Segment debts 52,947 58,652 47,466 - 56,753 102,311
Segment investments 4,568 9,950 4,418 0 18,936
Write-offs 5,867 4,114 4,680 0 14,661
D+S mobile &
telephony
services
thousands EUR
D+S
communication &
collection services
thousands EUR
Consolidation
thousands EUR
D+S europe
Group Total
thousands EUR
Revenues total 82,139 83,210 - 536 164,813
external 81,630 83,183 0 164,813
internal 509 27 - 536 0
segment eRnings (eBit) 11,720 7,302 0 19,022
Segment assets 163,136 68,085 - 22,232 208,989
Segment debts 54,542 17,206 - 22,232 49,516
Segment investments 10,006 4,514 0 14,520
Amortization and depreciation 4,355 4,405 0 8,760
Result from at-equity participations 0 - 920 0 - 920

eakdown of segment assets and segment liabilities
Dec. 31, 2007
thousands EUR
Dec. 31, 2006
thousands EUR
BalanCe sheet assets 452,572 237,711
Interest in affiliated companies - 65 - 12
Other participations, securities and lendings - 940 -1,017
Securities and liquid assets - 31,617 -11,399
Deferred tax assets - 10,483 -16,294
Current income tax claims - 3,792 0
segment assets total 405,675 208,989
BalanCe sheet liaBilities 452,572 237,711
Shareholders’ equity - 188,547 -105,792
Financial debts - 138,909 - 75,946
Deferred tax liabilities - 14,927 - 3,324
Current income tax liabilities - 7,878 - 3,133
segment liabilities total 102,311 49,516
123

124 notes on the Consolidated finanCial statements
42 otheR finanCial oBligations
As of December 31, 2007 the following obligations existed in connection with rental and
leasing agreements in the amounts stated below:
43 post-BalanCe sheet events
2008
thousands EUR
With effect from January 1, 2008 Mr Henning Soltau has been appointed Chief Financial
Officer (CFO) of D+S europe AG.
By notarized contract of purchase of January 30, 2008 and with legal effect from January 1, 2008,
D+S europe AG purchased 85.2% of the interests in Adamicus GmbH, Munich. A call option
has been granted to D+S europe AG on purchase of the remaining 14.8% of the GmbH interests
in Adamicus GmbH. Adamicus GmbH is operative in the field of online marketing.
Apart from the two events described above no other event of particular importance has
occurred after closing date of business year 2007.
2009
thousands EUR
2010
thousands EUR
2011 ff
thousands EUR
Rental agreements 6,928 5,659 4,873 31,581
Leasing of equipment 3,338 3,136 1,137 0
Maintenance/service network operation 2,394 172 0 0
Leasing of vehicles 408 275 133 6
Insurances 181 0 0 0
Other 1,630 37 7 0
total 14,879 9,279 6,150 31,587

44 offiCeRs and diReCtoRs of the paRent Company
members and remuneration of the management board
Fixed
thousands EUR
Annual Remuneration Total
Achievement-based
component
thousands EUR
Other
thousands EUR
Total
thousands EUR
Achim Plate, Glückstadt
Chairman of the Board 420 230 24 674
Tobias Hartmann, Hamburg 330 30 13 373
Sven Heyrowsky, Hannover
since July 6, 2007 180 0 12 192
total 930 260 49 1,239
regulation pertaining to the remuneration of the management board
The Presidential Committee is responsible for determination and structure of the remuneration
scheme as well as remuneration of the individual Board members. The Supervisory Board
regularly checks and gives advice on the remuneration structure.
Remuneration for Board members of D+S europe AG depends on the size of the enterprise,
its economic and financial position as well as the amount and structure of remuneration of
comparable enterprises. Additionally, the scope of tasks, experience and achievements of
the individual Board members are taken into account for assessing remuneration.
To a large degree management remuneration is achievement-based. It consists of three components:
a fixed basic remuneration, variable bonuses for achievement of objectives and a discretionary
component. No provision is made for pensions.
Apart from being entitled to fixed remuneration as agreed in the individual contracts, in the
past Management principally benefited from schemes for issuing convertible bonds to the
Board members and selected executives (Executive Stock Option Plan) resolved by the Annual
General Meetings of D+S europe AG in 2004, 2005 and 2006. These schemes for issuing
convertible bonds provide that members of the Board and selected executives may subscribe
to convertible bonds thus obtaining entitlement to buy D+S europe AG shares in the amount of
remuneration rights as laid down in their employment contract instead of demanding repayment
of the bond and payoff of their variable remuneration component. Shares are thus only
issued against transfer of contractual remuneration rights. Any other remuneration right of
the Board does not result from the scheme for issuance of convertible bonds.
125

126 notes on the Consolidated finanCial statements
The fixed remuneration component is paid monthly as a salary. It is re-assessed in the course of
contract extensions. Moreover Board members are conceded benefits in kind, mainly company
cars, telephone flat-rates and insurance premiums.
Results to be reached by the Board members in order to obtain their achievement-related remuneration
component depend on the achievements communicated to the capital market for the
corresponding business years. For the Chairman of the Board, parts of his achievement-related
bonuses are based on achieving semi-annual and annual objectives. When achieving the agreed
objectives the achievement-related bonuses are due. When results fall short of these objectives
the Board is not entitled to these bonuses. In 2007 further parts of the achievement-based
bonus depended on the successful implementation of the Heycom Group acquisition.
Since November 2005 remuneration of the Chairman of the Management Board, Mr Achim
Plate, has comprised a fixed basic salary in the amount of EUR 420,000 as well as a bonus for
the achievement of the business plan objectives in the amount of EUR 100,000 per business
year. Furthermore, the Chairman of the Management Board receives a bonus in the amount of
EUR 200,000 to be fixed by the Supervisory Board at its discretion.
Mr Tobias Hartmann, member of the Management Board since March 15, 2005 and in charge
of the units Business Process Management, Production, Sales and IT, receives a fixed
remunera tion component in the amount of EUR 360,000 p.a. (EUR 300,000 up to June 30;
EUR 360,000 since July 1) as well as a bonus for the achievement of business plan objectives
in the amount of EUR 100,000 per business year. Furthermore, Mr Hartmann receives a bonus
in the amount of EUR 150,000 to be fixed by the Supervisory Board at its discretion.
Mr Sven Heyrowsky, member of the Board since July 6, 2007 and in charge of the units
E-Commerce, Content Management, Warehousing and Fulfillment, receives a fixed remuneration
component in the amount of EUR 360,000 p.a. as well as a bonus for the achievement of
business plan objectives in the amount of EUR 100,000 per business year. Furthermore, Mr
Heyrowsky receives a bonus to be fixed by the Supervisory Board at its discretion whose
amount depends on the degree to which the respective business plan objectives are achieved
taking into account Mr Heyrowsky’s performance as a Board member.
In addition to the remuneration mentioned above, the members of the Board receive contracted
fringe benefits in the usual amounts, in particular the right to make private use of their
company cars.
members of the supervisory board
Due to the increase in the number of staff employed by the D+S europe Group, D+S europe AG
exceeded the minimum number of permanently more than 2,000 employees required for equal
representation in the Supervisory Board. As a consequence, the Supervisory Board is composed
of 12 members, six of which are appointed by the shareholders and six by the employees.

On June 7, 2007 the Annual General Meeting of D+S europe AG took place in the course of
which shareholders’ representatives where elected members of the Supervisory Board resulting
in the following appointments:
Name Function Period
Klaus Thiemann,
Managing Director, Düsseldorf
Thomas Hoffmann,
Businessman, Itzehoe
Chairman
member of the main and
audit committee, member of
conciliation committee
member of the main and
audit committee
member of conciliation committee
all-year
all-year
Hans-Jürgen Beck, Businessman, Hamburg all-year
Prof. Knut Foeckler, Media Consultant, Munich all-year
Dr. Thomas Adler, Tax Advisor, Hamburg all-year
Andreas Klebe, Managing Director, Hannover since June 7, 2007
On June 23, 2006 the staff of D+S europe AG and companies affiliated in compliance with Art.
15 ff. AktG (Stock Corporation Law) appointed employees to the Supervisory Board resulting
in the following composition:
Name Function Period
Kristina Krüger,
employee, Bekmünde,
employees’ representative
Mario Bethune-Steck,
employee, Bargteheide,
executives’ representative
Jürgen König,
employee, Gablingen,
employees’ representative
Ursula Harjes-Loock,
employee, Hagen,
employees’ representative
Ulrich Beiderwieden,
employee, Berlin
Karlheinz Vernet Kosik,
employee, Pettstadt
Vice Chairwoman
member of conciliation committee
member of main and
audit committee
member of
conciliation committee
trade union representative, ver.di,
Vereinte Dienstleistungsgewerkschaft
trade union representative, DPVKom,
DPVKommunikationsgewerkschaft
Bavaria
all-year
all-year
all-year
all-year
all-year
all-year
127

128 notes on the Consolidated finanCial statements
remuneration of supervisory board
regulation pertaining to the remuneration of the supervisory board
Remuneration of the members of the Supervisory Board is fixed at EUR 5,000 per annum
plus evidenced expenses. The Chairman of the Supervisory Board receives EUR 17,500 plus
evidenced expenses and the Vice Chairman of the Supervisory Board receives EUR 5,500 plus
evidenced expenses. Furthermore, each member of the Supervisory Board receives an additional
annual remuneration of EUR 2,500 for every chairmanship of a committee of the Supervisory
Board and an additional annual remuneration of EUR 750 for every membership in a committee
of the Supervisory Board. The annual remuneration for each member of the Supervisory
Board increases by EUR 500 for each cent exceeding the amount of 15 cents of shareholder’s
dividend per share.
Moreover, all expenses incurring in the course of their mandate as well as turnover tax charged
on their remuneration are refunded to Supervisory Board members.
The members of the Supervisory Board do not obtain any loans from the company.
additional fees paid for consulting:
Fixed
EUR
Function-based
EUR
Klaus Thiemann 5,000 17,500 22,500
Thomas Hoffmann 5,000 1,500 6,500
Hans-Jürgen Beck 5,000 0 5,000
Prof. Knut Foeckler 5,000 0 5,000
Dr. Thomas Adler 5,000 0 5,000
Mario Bethune-Steck 5,000 750 5,750
Kristina Krüger 5,000 1,250 6,250
Ursula Harjes-Loock 5,000 750 5,750
Jürgen König 5,000 0 5,000
Ulrich Beiderwieden 5,000 0 5,000
Karlheinz Vernet Kosik 5,000 0 5,000
Andreas Klebe 2,833 0 2,833
thousands EUR
Klaus Thiemann 81
Thomas Hoffmann 66
Dr. Thomas Adler 55
Prof. Knut Foeckler 44
Total
EUR

membership of members of the supervisory board of d+s europe ag
in other supervisory boards and comparable control boards:
Name Enterprise
Prof. Knut Foeckler Grünhauf AG, Munich
Thomas Hoffmann conTakt AG, Itzehoe
Dr. Thomas Adler BulwienGesa AG, Berlin
Hans-Jürgen Beck
45 appliCation of aRt. 264 paRa. 3 hgB (geRman CommeRCial Code)
In the business year 2007 the following national subsidiaries partly applied the exemption rule
as laid down in Art. 264 Para. 3 HGB (German Commercial Code):
• Heycom GmbH
• dtms GmbH
• D+S cc Münster GmbH
• D+S cc Bremerhaven GmbH
• D+S cc Frankfurt/Oder GmbH
• D+S cc Hamburg GmbH
• D+S cc Itzehoe GmbH
• D+S cc Parchim GmbH
• D+S cc Augsburg GmbH
• D+S solutions GmbH
46 statement aCCoRding to aRt. 161 aktg (stoCk CoRpoRation law)
The declaration to be made by D+S europe AG according to Art.161 AktG has been carried out
and made available to the shareholders on a permanent basis via Internet.
Hamburg, March 13, 2008
Management Board
new econ AG, Wiesbaden
Concom AG, Augsburg
Nextevolution AG, Hamburg
Ulrich Beiderwieden TÜV Nord AG, Hannover
Karlheinz Vernet Kosik PSD Bank Nürnberg eG, Nürnberg
Mario Bethune-Steck mobileview AG, Hamburg
Dipl. Ing Achim Plate Tobias Hartmann Sven Heyrowsky
Henning Soltau
129

130 auditoRs’ RepoRt
auditors’ report
We have audited the consolidated financial statement prepared by D+S europe AG, Hamburg –
consisting of the balance sheet, the profit and loss account, the cash flow statement, the statement
of changes in shareholders’ equity and the notes on the financial statements – as well as
the management report on the company and the Group for the fiscal year from January 1 to
December 31, 2007. The content and preparation of the consolidated financial statements and
the management report on the Group in accordance with the International Financial Reporting
Standards (IFRS) as to be applied within the EU, as well as the supplementary commercial law
regulations to be applied according to Art. 315a, Para. 1 of HGB (German Commercial Code),
are the responsibility of the company’s Management Board. It is our responsibility to express an
opinion, based on our audit, and assess the consolidated financial statements and the report
of management.
We conducted our audit of the consolidated financial statements in compliance with Art.317 HGB
and in accordance with German auditing regulations and accepted standards for auditing
financial statements, promulgated by the Institut der Wirtschaftsprüfer (Institute of Auditors).
In compliance with these accounting standards, the audit is to be planned and performed to
obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatements with regard to assets, financial position and operating results of the
company as shown in the consolidated financial statements in compliance with the applicable
accounting standards and in the management report on the company and the Group. Audit
procedures are determined to take into account knowledge of the business activities as well as of
the economic and legal situation of the company and the possibility of misstatements. The audit
includes, primarily on a spot test basis, examination of the effectiveness of accounting-relevant
internal control systems as well as evidence supporting the amounts and disclosures in the
consolidated financial statements as well as in the management report on the company and the
Group. It also includes assessment of the financial statements of the consolidated companies,
accounting of consolidated companies, the accounting and consolidation principles applied,
and significant appraisals made by management board as well as evaluation of the overall
presentation of the consolidated financial statements and the management report on the company
and the Group. We believe that our audit provides a reasonable basis for this opinion.
Our audit contains no reservations.
In our opinion, based on the results of our audit, the consolidated financial statement of
D+S europe AG, Hamburg, corresponds to IFRS, as to be applied within the EU, and the
supplementary commercial-law standards in compliance with Art. 315a, Para. 1 HGB, and, in
compliance with these standards, gives a true and fair view of the assets, financial position and
operating results of the Group. We also confirm that the management report on the company
and the Group is consistent with the consolidated financial statements, gives a fair view of the
position of the Group and suitably presents the chances and risks of future development.
Hamburg, 14 March 2008
Deloitte & Touche GmbH
Wirtschaftsprüfungsgesellschaft
(Independent Auditors)
Tesch
Auditor
ppa. Krantz
Auditor

our locations
Adamicus GmbH
Ledererstraße 10
80331 München
atms Telefon- und Marketing Services GmbH
Saturn Tower
Leonard-Bernstein-Strasse 10
1220 Wien
Austria
ctms s.r.o.
Thámova 183/11
186 00 Praha 8
Czech Republic
dtms GmbH
Isaac-Fulda-Alle 5
55124 Mainz
D+S address GmbH
Mexikoring 33
22297 Hamburg
D+S communication center Augsburg GmbH
Proviantbachstraße 30
86153 Augsburg
D+S communication center Augsburg GmbH, NL Hof
Hofer Straße 17
95030 Hof
D+S communication center Bremerhaven GmbH
Barkhausenstraße 22
27568 Bremerhaven
D+S communication center Frankfurt/Oder GmbH
Gerhard-Neumann-Straße 1
15236 Frankfurt /Oder
D+S communication center Gera GmbH
Hainstrasse 10
07545 Gera
D+S communication center Hamburg GmbH
Mexikoring 33
22297 Hamburg
D+S communication center Itzehoe GmbH
Hanseatenplatz 7
25524 Itzehoe
D+S communication center Management GmbH
Kapstadtring 10
22297 Hamburg
D+S communication center Münster GmbH
Servatiiplatz 9
48143 Münster
D+S communication center Parchim GmbH
Ludwigsluster Straße 29
19370 Parchim
D+S communication center Rügen GmbH
Boddenstraße 63/64
18528 Lietzow
D+S e-commerce GmbH
Kapstadtring 10
22297 Hamburg
D+S europe AG
Kapstadtring 10
22297 Hamburg
D+S europe Czech s.r.o.
Thamova 11-13
186 00 Praha 8
Czech Republic
D+S inkasso GmbH
Kapstadtring 10
22297 Hamburg
D+S payment GmbH
Issac-Fulda-Allee 9
55124 Mainz
D+S solutions GmbH
Beethovenstraße 2-4
25524 Itzehoe
D+S solutions GmbH
Im Mediapark 6 A
50670 Köln
D+S solutions GmbH
Zum Panrepel 5c
28307 Bremen
Heycom GmbH
Alte Ricklinger Straße 59-61
30823 Garbsen
mobileview GmbH
Airport-Center Hamburg
Flughafenstraße 54 b
22335 Hamburg
ouR loCations
131

132
finanCial CalendaR
financial calendar
finanCial CalendaR of d+s euRope ag – 2008
May 15 Quarterly report 1st quarter 2008
June 4 General Annual Meeting, Hamburg
August 14 Quarterly report 2nd quarter 2008
November 10-12 Analyst conference German Equity Forum 2008, Frankfurt
November 12 Quarterly report 3rd Quarter 2008
contact
in case of queries
pleace contact:
investoR Relations
Bernd Humke
Director Investor Relations
Telephone: +49.40.41 14 - 33 35
E-Mail: investor-relations@dseurope.ag
CoRpoRate CommuniCations
Thiess Johannssen
Director Corporate
Communications & Marketing
Telephone: +49.40.41 14 -14 00
E-Mail: public-relations@dseurope.ag

ImprInt
Editorial officE
D+S europe AG
Kapstadtring 10
22297 Hamburg
Tel.: +49.40.41 14 - 0
Fax: +49.40.41 14 - 00 99
E-Mail: info@dseurope.ag
www.dseurope.ag
Editor/coordination
Thiess Johannssen, D+S europe AG
concEpt, consulting,
dEsign and production
Agentur Punktlandung GmbH, Hamburg
photography
Photos Management:
Werner Bartsch, Hamburg
Photos People:
Tilman Schuppius, Hamburg
print
Druckerei Siepmann, Hamburg
publishEd
in April 2008
This annual report is also published in German.
Both versions are available and can be downloaded
at www.dseurope.ag.

europe ag
kapstadtring 10
22297 hamburg
www.dseurope.ag