GFT Interim Report as of 31 March 2011 by GFT Technologies SE

Interim Report as of 31 March 2011

Q1—2011

Key figures according to IFRS

Continued operations

First quarter

01.01.– 31.03.2011

01.01.– 31.03.2010

Change

Income Statement Revenue

€m

67.30

54.43

23.6%

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

€m

2.18

1.78

22.5%

Earnings before interest and taxes (EBIT)

€m

1.86

1.50

24.0%

Earnings before taxes (EBT)

€m

2.02

1.62

24.7%

Net income as at 31 March from continued operations

€m

1.35

1.16

16.4%

Non-current assets

€m

29.59

32.44

-8.8%

Cash, cash equivalents and securities

€m

38.27

31.32

22.2%

Other current assets

€m

62.00

49.58

25.1%

ASSETS

€m

129.86

113.34

14.6%

Non-current liabilities

€m

2.18

1.80

21.1%

Current liabilities

€m

55.03

42.03

30.9%

Shareholders´ equity

€m

72.65

67.16

8.2%

SHAREHOLDERS' EQUITY AND LIABILITIES

€m

129.86

110.99

17.0%

Equity ratio

56%

59%

-3.0%-points

Cash flow from operating activities

€m

-2.44

-6.47

-62.3%

Cash flow from investing activities

€m

-0.43

-0.16

168.8%

Cash flow from financing activities

€m

0.63

0.86

-26.7%

no.

1,307

1,149

13.8%

0.05

0.04

16.4%

Balance Sheet

Cash flow

Employees Number of permanent employees (as at 31 March)

Share Earnings per share acc. to IAS 33

€

➜

❘

Highlights

The GFT Group continued the positive development of the past financial year in early 2011 and closed the first quarter of 2011 with a strong increase in revenue and earnings. For the current financial year, the Executive Board therefore confirms the forecast made in the Consolidated Financial Statements 2010 and expects total revenue of €275 million and earnings before taxes of €13 million in 2011.

Revenue

€ million

Earnings before taxes

2010

2011

2010

€ million

2011

69.52

2.79

64.06

4.12

60.25

3.02

54.43

67.3

1.62

2.02

248.26

67.3

11.55

2.02

Contents Interim Management Report … 2 | Consolidated Interim Financial Statements … Notes to the Interim Financial Statements … 21

Q1—2011

Interim management report of GFT Technologies AG as of 31 March 2011

Business environment Economic environment Macroeconomic development

2010, the same institutes had been somewhat more cautious with forecasts of 2.0% for 2011. Experts believe that domestic demand will play an increasingly strong role

The dynamic growth of the global economy in 2010

in driving growth. The German Economics Ministry predicts

continued into the first quarter of 2011. In its outlook

dynamic investment activity in view of the favourable

published in April this year, the International Monetary

interest rate climate.

Fund (IMF) raised its growth forecast for 2011 as a whole to 4.4% – in October 2010 it had still assumed growth of 4.2%. The Organisation for Economic Cooperation and Development (OECD) is similarly optimistic about the general economic situation. It believes there is considerable growth potential and that the recovery is becoming less reliant on state-financed support measures. Growth is particularly strong at present in emerging and developing economies such as China and India. The IMF’s economists expect growth here to reach 6.5% in both 2011 and 2012. However, they also list several factors which may hamper global economic growth: the ongoing weakness of the US real estate market, high raw material prices and the danger of bubbles forming in emerging and developing economies as a result of massive inflows of capital. There is also still uncertainty as to how the catastrophe in Japan as well as the crises in North Africa and their consequences will affect the oil price, for example, and the global economy as a whole.

Sector development According to the latest economic survey of the German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) in April 2011, the German Information and Communication Technology (ICT) sector is currently in bullish mood. In the first quarter of 2011, this optimism pervaded almost all segments of the high-tech market: 78% of companies surveyed reported increased revenues. Companies offering IT services (85%) and software (81%) are profiting more than average from the healthy economic environment. For 2011, BITKOM predicts a boom in new products and solutions, such as tablet PCs, smartphones and cloud computing. This positive sector development will also increase the demand for IT specialists. As a result, BITKOM expects the current shortage of skilled labour in this sector to become even more acute.

problems, according to the IMF’s experts: several countries

Course of business in the first three months of 2011

– including Greece, Portugal and Ireland – are still facing

The GFT Group continued the positive development of the

considerable economic difficulties. This may endanger the

past financial year in early 2011 and closed the first quar-

stability of the financial markets. The IMF therefore believes

ter of 2011 with a strong increase in revenue and earnings.

that swift and extensive measures are essential to secure

Despite traditionally weaker demand in the first three

growth and solve the Euro zone’s financial problems.

months, revenue grew year on year by 24% to €67.30

The situation in the Euro zone remains fraught with

The German economy continues to grow faster than most other Euro nations. Following record growth of 3.6% in 2010, a further strong upswing is expected for Germany

million (prev. year: €54.43 million). Earnings before taxes (EBT) reached €2.02 million and were thus 25% higher than in the same period last year (€1.62 million).

in 2011. Although likely to lose momentum over the year,

Both business divisions enjoyed strongly dynamic revenue

this growth has solid foundations: in their spring reports,

growth. The ongoing recovery of the economy as a

leading economic institutes in Germany forecast healthy

whole gave a significant boost to the Resourcing division

growth of 2.8% in 2011 and 2.0% in 2012. In autumn

in particular. The growth in international demand for

➜

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Interim Management Report

GFT share freelance IT specialists and engineers had a positive impact

The international share markets got off to a good start in

on this segment, whose clients are mostly to be found in

2011. Following slightly cautious trading in January, they

the manufacturing industry. In addition to more intensive

began to gather momentum towards the end of February.

cooperation with existing clients, significant revenue gains

Good economic data from the USA and Germany, as

were also achieved by winning new customers – especially

well as slight relief with regard to the Euro debt crisis

in France and Germany. Thus the Resourcing division suc-

and healthy company profits, all contributed to the more

ceeded in raising segment revenue by 38% to €38.41 mil-

upbeat mood. The strong increase in the oil price in early

lion (prev. year: €27.81 million). In the first three months of

March and fears that this might dampen global eco

2011, the Services segment generated revenue of €28.89

nomic growth, however, soon put an end to the market’s

million (prev. year: €26.62 million) – representing year-on-

optimism. The natural disaster and reactor catastrophe in

year growth of 9% – and was thus able to build on the

Japan in mid March subsequently led to a strong decline

high level of revenue already achieved in 2010.

as uncertainty and apprehension spread throughout the

Earnings before taxes grew strongly by 25% to €2.02

world’s stock exchanges.

million (prev. year: €1.62 million). Of this total, the Services

The blue-chip DAX index made a strong start to 2011.

division accounted for €1.44 million (prev. year: €1.29 mil-

In late February, it reached its highest level since January

lion) and thus made the largest contribution to earnings.

2008 at 7,400 points and was well above its 200-day

This segment succeeded in efficiently utilising the financial

line up to this point. At this time, many analysts thought

sector’s high propensity to invest. The Resourcing division

an all-time high of over 8,000 points was realistic. In line

benefited from the recovery of the industrial sector, which

with the general stock market crisis, however, the DAX

began last year and is now in full swing. As a result of

also began to slide steadily from mid March onwards and

increased revenue and efficiency gains in its internal pro-

dipped below 6,500 points at times. Towards the end of

cesses, segment earnings in the first quarter of 2011 were

the month though, it began to pick up again and closed

up 71% to €0.65 million (prev. year: €0.38 million).

at 7,041 points on 31 March 2011. Up to early March,

The quarterly result of €2.02 million also includes sched uled expenditure of the Group’s headquarters of €0.07 million not attributed to the divisions. Due to the high propensity to invest in those markets of particular significance to GFT, the Group expects further profitable and sustainable growth in 2011. The ongoing recovery of the industrial sector in particular is expected to have a positive impact on the Resourcing division. The Services division will continue to harness the high level of investment which banks and insurance companies are currently making in new IT systems. For the current financial year, the Executive Board therefore confirms the forecast made in the Consolidated Financial Statements 2010 and expects total revenue of €275 million and earnings before taxes of €13 million in 2011.

the TecDAX (tech stocks) closely mirrored the DAX’s performance. Following a less dramatic decline, however, it recovered more strongly and climbed to 931 points as of 31 March 2011 – corresponding to growth of 8% since the beginning of the year. In line with the general market situation, the GFT share also made a successful start to the year in 2011. Following modest trading at around the closing price of the previous year, interest picked up strongly towards the middle of the month. On 18 January, the share reached a year-high of €4.94 – a level last reached in 2002 – and ended the day at €4.86. Following slight consolidation in February, the GFT share was subsequently unable to escape the general market mood as of early March and fell to a low of €3.62 on 15 March 2011. Within just a few days, however, the €4.00 level was reached again and the share was quoted at €4.10 on 31 March 2011.

Q1—2011

After publication of our figures for financial year 2010,

and also maintained their »buy« rating. Warburg Research

analysts at Landesbank Baden-Württemberg (LBBW) raised

GmbH also recommends buying the share and still believes

their upside target from €4.70 to €5.00 and upheld their

it can reach a price of €5.30 – after already raising its up-

»buy« recommendation for the GFT share. Analysts at

side target from €4.70 to the current €5.30 in November

equinet Bank AG raised their target from €4.70 to €5.30

2010.

Share price performance in Euro (Xetra) GFT share 5.00

200

4.50

150

4.00

100

3.50

50 Trading volume in thousand

3.00

3 January 2011 4.33 €

Indexed share price performance (Xetra)

31 March 2011 4.10 €

GFT share

Technology All Share Performance Index 120

100

3 January 2011 4.33 € = 100%

31 March 2011 4.10 €

➜

Shareholder structure (%)

❘

Interim Management Report

There were no significant changes in the shareholder structure of GFT Technologies AG in the first quarter of 2011. Company founder Ulrich Dietz continues to hold 28.46%, while his wife Maria Dietz owns 9.68% of shares. Dr. Markus Kerber, a former member of GFT’s Supervisory Board, holds 5.00% of voting rights, while the free float amounts to 56.86%. The voting rights of the insolvent AvW Group – which fell

below the 5% threshold on 25 February 2010 and were

Ulrich Dietz

28.46

Maria Dietz

9.68

Dr. Markus Kerber

5.00

Free float

thus allocated to the free float portion – were placed entirely with new investors on 4 April 2011. The shares were purchased in full by institutional investors in Germany in the course of a structured transaction. The GFT Executive

56.86

Board was in close contact with the appointed administrator throughout the process and welcomed the new placement of the shares.

Information on the GFT share Q1 2011

Q1 2010

Year-opening quotation (Xetra)*

€4.33

€2.45

Closing quotation on 31 March (Xetra)*

€4.10

€3.55

-5%

+69%

Highest price (Xetra)*

€4.86 (18.01.2011)

€3.74 (15.03.2010)

Lowest price (Xetra)*

€3.62 (15.03.2011)

€2.45 (04.01.2010)

€107.94 million

€93.46 million

Percentage change since year-opening

Market capitalisation as of 31 March

€0.05

€0.04

42,217

36,239

Earnings per share from continued operations Average daily trading volume in shares (Xetra and Frankfurt)* * daily closing prices

ISIN

DE 0005800601

Market segment

Prime Standard

Designated sponsors

Landesbank Baden-Württemberg (LBBW) equinet Bank AG

Number of issued bearer shares with a par value of €1 per share

26,325,946

Q1—2011

Development of revenue Against the backdrop of strong progress across all seg-

Increased demand for freelance IT specialists had a strong

ments and countries, the GFT Group generated revenue of

impact on the Resourcing division, which comprises the

€67.30 million in the first three months of 2011 and thus

fields of Resource Management and Third Party Manage-

exceeded the prior-year level by 24% (prev. year: €54.43

ment. The segment generated revenue of €38.41 million,

million). The Resourcing division made a particularly strong

corresponding to growth of 38% (prev. year: €27.81

contribution to this development with segment revenue of

million). The ongoing recovery of the industrial sector gave

€38.41 million, representing year-on-year growth of 38%

a particular boost to the division’s Resource Management

(prev. year: €27.81 million). The Services division reported

business. This field recorded growth of 49% to €20.54

revenue growth of 9% to €28.89 million (prev. year:

million (prev. year: €13.76 million). Third Party Manage-

€26.62 million).

ment benefited from continued demand from the financial sector and generated revenue of €17.87 million – up 27%

Revenue by segment

compared to last year (€14.05 million).

The particularly strong development of the Resourcing

The Services division posted segment revenue of €28.89

division in the first quarter of 2011 is also reflected in the breakdown of revenue by segment: in the period under review, the Resourcing division accounted for 57% of total revenue, thus raising its share by 6%-points (prev. year: 51%). As a result, the Services division’s share fell to 43% (prev. year: 49%).

Resourcing Third Party Management Resource Management Services

(prev. year: €26.62 million). In addition to strong and more stable demand from corporate and investment banking clients in the UK, there was also a marked improvement in investment activity within Germany’s financial sector in the period under review.

Revenue by segment

million and thus achieved year-on-year growth of 9%

Revenue by country

Q1 2011

57%

Germany

55%

27%

15%

30%

Spain

10%

43%

France

10%

Switzerland

USA

Other countries

➜

Revenue by country Germany played an important role for the growth of revenue in the first quarter of 2011. The GFT Group’s largest sales market contributed revenue of €36.72 million (prev. year: €29.44 million), corresponding to growth of 25% year on year. This positive development is largely due to the recovery of the industrial sector and the resulting increase in demand for freelance IT specialists. This had a particularly strong impact on the Resourcing segment’s Resource Management business. Moreover, Germany’s finance industry also stepped up investments in the first quarter with positive effects for the Services segment. Germany’s share of total revenue remained unchanged at 55%. Following a strongly positive development in financial year 2010, the high level of revenue in the UK was expanded further in the first quarter of 2011. The Services division was able to benefit from consistently high demand for IT solutions in the corporate and investment banking sector. A total of €9.91 million was generated with clients in the UK, representing year-on-year growth of 22% (prev. year: €8.13 million). With a share of total revenue volume of 15% (prev. year: 15%), the UK remains the GFT Group’s

❘

Interim Management Report

The GFT Group enjoyed particularly strong revenue growth with its clients in Switzerland. Revenue grew year on year by 63% to €2.17 million (prev. year: €1.33 million). This significant increase resulted mainly from the expansion of project volumes with existing clients in the Services division and the successful development of Resourcing activities. Switzerland contributes 3% to the total revenue (prev. year: 2%). The strong demand for IT solutions in the field of corpor ate and investment banking in the USA levelled off in the first quarter of 2011. With revenue of €1.61 million (prev. year: €1.64 million), the USA accounts for 2% of the GFT Group’s total revenue volume (prev. year: 3%). The proportion of total revenue generated by clients in »Other countries«, including the Benelux states, Italy and Brazil, remained stable at 5%. In the period under review, the GFT Group generated revenue of €3.50 million (prev. year: €2.99 million) with clients in these countries. This corresponds to growth of 17%.

Revenue by industry The financial services industry continues to represent

second largest sales market.

the most important sector for the GFT Group with a share

GFT recorded a significant increase in revenue from clients

financial sector had a positive impact on revenue, which

in France. Revenue generated with clients on the French

grew by 20%. In the period under review, a total of

market reached €6.88 million and was thus 54% higher

€44.60 million was generated (prev. year: €37.19 million).

than in the same period last year (€4.46 million). This

There was a particularly strong improvement in the finan

growth was largely attributable to the acquisition of new

cial sector’s propensity to invest in the UK and Germany.

customers and the expansion of our cooperation with existing clients in the Resourcing division. The country’s share

of 66% (prev. year: 68%). The ongoing recovery of the

Revenue with clients in the postal and logistics industry

of total revenue increased to 10% (prev. year: 8%).

also made encouraging progress with growth of 44%. In

Despite adverse conditions in the Spanish financial sector,

generated (prev. year: €3.31 million), accounting for 7% of

the GFT Group succeeded in achieving almost the same

total revenue (prev. year: 6%). This growth in revenue was

level of revenue with clients in Spain as in the previous

largely due to increased demand for freelance IT specialists

year. This development was aided by cross-border out

in the Resourcing division.

sourcing projects which resulted in high capacity utilisation at the Group’s Spanish facilities. In the first three months of 2011, a total of €6.51 million was generated (prev. year: €6.44 million). Spain accounts for 10% of total revenue (prev. year: 12%).

the first three months of 2011, a total of €4.75 million was

Q1—2011

Earnings position In the »Others« category, which also includes clients from

Following its successful financial year 2010, the GFT Group

the manufacturing industry, the Resourcing segment’s in-

was able to raise earnings before taxes (EBT) once again

creased sales with industrial clients had a strongly positive

in the first quarter of 2011. EBT amounted to €2.02 million

impact. The recovery of the industrial sector, which had

in the first three months and thus improved year on year

already begun in late 2010, continued in the first three

by 25% (prev. year: €1.62 million). Both divisions contrib

months of 2011 and led to revenue growth of 29%. All in

uted to this development. In the Services segment, growth

all, revenue of €17.95 million was generated with clients

resulted from the consistently strong order position. In the

in the »Others« category (prev. year: €13.93 million). As a

Resourcing segment, the positive trend continued as a

consequence, the category’s share of total revenue volume

result of strong demand for freelance staff.

rose to 27% (prev. year: 26%).

As of 31 March 2011, earnings before interest and taxes (EBIT) amounted to €1.86 million (prev. year: €1.50 million). Consequently, there was a corresponding increase in earnings before interest, taxes and depreciation/

Revenue by industry

amortisation on property, plant and equipment and intangible assets (EBITDA) of 22% to €2.18 million at the end of the first quarter (prev. year: €1.78 million). After deducting all expenses, the GFT Group thus gener ated net income of €1.35 million in the first three months of 2011. This corresponds to growth of €0.19 million or 16% compared to the same period last year (prev. year: %

Q1 2011

Financial services providers

66%

Postal/Logistics Others

7% 27%

€1.16 million). The calculated tax ratio for the first quarter amounted to 33% and is thus 4%-points higher than in the previous year (29%). This slight increase in the tax ratio results from differences in the earnings of those countries in which a usual tax ratio for the GFT Group was achieved. For 2011 as a whole, we expect the tax ratio to remain unchanged at around 30%. Earnings per share for the first quarter of 2011 im proved slightly compared to last year, reaching €0.05 (prev. year: €0.04). These figures are based on an average of 26,325,946 outstanding shares.

Group earnings position by segment At €1.44 million for the first quarter of 2011, earnings in the Services division were 12% above the corresponding prior-year figure of €1.29 million. The positive trend of 2010 remained noticeable in both demand and results in the first quarter of 2011.

➜

❘

Interim Management Report

Earnings by segments

Services € million

Resourcing

Total

Others

Q1/10

Q1/11

Q1/10

Q1/11

Q1/10

Q1/11

Q1/10

Q1/11

1.29

1.44

0.38

0.65

-0.05

-0.07

1.62

2.02

As in previous years, our clients made more modest use of

The cost of materials mainly included the purchase of

their IT budgets during the early months of the calendar

external manpower and increased strongly in line with

year. As a result, capacity utilisation of staff in the Services

revenue growth in the Resourcing division during the first

segment was below the high levels achieved in the third

quarter. It amounted to €39.25 million, corresponding to

and fourth quarters of 2010. As in previous periods, we

an increase of €9.32 million over the prior-year figure of

expect this seasonal effect will be balanced out in the

(€29.93 million).

second half of the year.

The strong growth in headcount in 2010 led to an increase

Earnings in the Resourcing division improved significant-

in personnel expenses of €1.94 million to €21.05 million

ly by 71% in the first quarter, from €0.38 million in the

(prev. year: €19.11 million).

previous year to €0.65 million in the first quarter of 2011. As a result, they reached the level of the first quarter of 2009 again – before the financial market crisis began to impact this division. The positive trend of the preceding quarters also continued in this segment, albeit slowed somewhat by a slight decline in new orders during the first quarter. Earnings in the Resourcing division resulted mainly from Resource Management activities in the first quarter, which contributed €0.64 million (prev. year: €0.33 million). Third Party Management accounted for €0.01 million (prev. year: €0.05 million) of earnings.

Group earnings position by income and expense items As of 31 March 2011, other operating income amounted to €0.35 million (prev. year: €0.72 million).

Depreciation of non-current intangible and tangible assets amounted to €0.31 million at the end of the first quarter of 2011 and was thus similar to the prior-year level of €0.28 million. This figure mainly consists of depreciation on IT hardware and software at our data centres as well as workstation systems and to a lesser extent office fixtures and fittings. At €5.10 million, other operating expenses in the first three months of 2011 were higher than in the previous year (€4.32 million). Sales expenditure in the form of travel costs and rent accounted for the largest share of other operating expenses. Administrative costs were also up as a result of the rise in headcount.

Q1—2011

Financial position Due to the Group’s strong earnings position, there was

in working capital during the first quarter was somewhat

a further increase in cash, cash equivalents and secu

weaker in 2011 than in the previous year. This was largely

rities. As of 31 March 2011, the figure had risen to

responsible for the improvement in cash flow as of

€38.27 million and was thus €6.95 million higher than in

31 March 2011.

the previous year (€31.32 million).

At the end of the first quarter, cash flows from

Increased revenue – especially in the Resourcing division –

investing activities amounted to €-0.43 million (prev.

resulted in a rise in trade receivables to €58.18 million

year: €-0.16 million). The change was mainly due to

(prev. year: €47.09 million). There was also a correspond

increased purchases of non-current assets in the form

ing rise in trade payables to €21.93 million at the end of

of IT procurements.

the first quarter (prev. year: €14.84 million). Trade payables mainly refer to the acquisition of external staff, especially for the Resourcing division, but also to IT projects of the Services division.

Compared with the same date last year, there was only a slight change in cash flows from financing activities to €0.63 million (prev. year: €0.86 million). As in the previous year, this amount mainly resulted from a subsidiary’s short-

There was a strong improvement in cash flows from

term use of a local credit line.

operating activities to €-2.44 million as of 31 March 2011 (prev. year: €-6.47 million). The typical increase

Group balance sheet structure

ASSETS in € million

31/12/ 2010

31/03/ 2011

31/12/ 2010

Cash, cash equivalents and securities

40.32

38.27

55.03

55.22

Current liabilities

Other current assets

58.77

62.00

2.18

2.09

Non-current liabilities Equity capital

Other non-current assets

29.49

29.59

72.65

71.27

128.58

129.86

128.58

EQUITY & LIABILITIES in € million

➜

❘

Interim Management Report

Asset position The balance sheet total of the GFT Group at the end of

As of the balance sheet date, no employees were still

the first quarter of 2011 was up slightly to €129.86 million

attributable to the Software segment, which is classified

and thus €1.28 million higher than at year-end 2010

as a discontinued operation pursuant to IFRS 5. The

(€128.58 million).

»Others« category comprises 39 persons belonging to the

On the asset side, there was little change in the Group’s non-current assets which amounted to €42.23 million as at 31 March 2011, compared to €42.19 million on 31

holding company – two more than at this time last year. Employees by division as of 31 March

December 2010. Due to increased revenue, trade receiv ables rose from €54.80 million at year-end 2010 to €58.18 million at the end of the first quarter. Amongst other

Services

things, this had an impact on cash, cash equivalents and

Resourcing

securities, which fell from €40.32 million at year-end 2010

Others

to €38.27 million as of 31 March 2011.

Total

2011

2010

1,166

1,024

102

1,307

1,149

On the liabilities side, the ratio between equity and debt remained virtually constant. Whereas trade payables fell

Software

by €5.95 million to €21.93 million (2010: €27.87 million), other liabilities increased in total by almost the same amount. Equity grew from €71.27 million as of 31 December 2010 to €72.65 million on 31 March 2011. The equity ratio was thus 56% at the end of the first quarter of 2011 (year-end 2010: 55%).

Employees

The number of people employed in Germany increased by 12%, from 251 on 31 March 2010 to 282 at the end of the first quarter of 2011. As a result, the proportion of total staff employed outside Germany remained unchanged at 78% (1,025 employees). The average number of freelancers employed in the first quarter of the year rose from 1,076 last year to 1,304 persons as of 31 March 2011.

At the end of the first quarter, the GFT Group employed a total of 1,307 people. The number of employees is

Employees by country as of 31 March

calculated on the basis of full-time staff. Part-time staff 2011

2010

Germany

282

251

are included on a pro rata basis. The increase of 158 persons or 14% year on year reflects the high utilisation of development capacity as well as the revenue growth of the

Brazil

158

135

France

The strongest growth was recorded by the Services

division, where headcount increased by 142 year on year.

Switzerland

Compared to 31 March 2010, the segment grew by 14%

Spain

789

699

to 1,166 employees.

USA

1,307

1,149

78%

previous year.

The number of staff employed in the Resourcing division

Total

rose from 88 last year to 102 at the end of the first quarter of 2011.

Foreign share in %

Q1—2011

Research and development

Opportunity and risk report

The GFT Group increased its R&D expenses in the first

In the first three months of 2011, there were no material

quarter of 2011 by 93% to €0.52 million (prev. year: €0.27

changes with regard to the comprehensive discussion

million). Personnel costs accounted for the largest share

of opportunities and risks provided in the Management

of this total (88% or €0.46 million). The strong increase in

Report accompanying the 2010 Consolidated Financial

expenditure resulted mainly from four strategic innovation

Statements. The risk position of the GFT Group is thus

projects initiated in the course of 2010 and intensively

unchanged.

pursued in the first quarter of 2011. a-touch: In the first quarter of 2011, GFT continued to drive the development of its touch banking solution for

Forecast report

financial advisors. Intelligently coordinated processes pro vide the basis for IT-assisted financial advising in the field

The economic upturn is expected to continue in 2011 and

of private banking and wealth management.

the coming year. Experts at the International Monetary Fund (IMF) forecast global economic growth of 4.4% for

SAP Competence Centre: GFT’s SAP Competence Centre

2011 and a growth rate of 4.5% for 2012. However, the

helps banks to convert their systems to SAP software.

economists also see an increasing number of risks for

Experts develop the corresponding application possibilities

global economic growth. These include rising prices for

to provide financial institutes with optimum support during

crude oil and other raw materials, as well as unrest in

their transformation process.

Northern Africa and the Middle East. Experts are also

Mobile Finance: GFT continues to expand the Mobile Finance Competence Centre it founded in 2009. R&D activities focus here on cross-platform mobile applications for financial service providers. Finance IT: The Finance IT innovation project focuses on developing innovative IT solutions for banks. Activities include projects in the field of customer management systems, churn management and the use of biometric pro cesses in banking transactions. Internal projects included the further optimisation of software development processes. The company has been working on this since 2005 on the basis of the internationally recognised CMMI® (Capability Maturity Model Integration) standard.

Subsequent events

worried about developments in the fast growing emerging economies, such as China and India. They fear that these economies may overheat, creating speculation bubbles in the respective real estate and stock markets. The situation in the Euro zone continues to be dominated by the weak development of crisis-hit peripheral nations. The Euro zone as a whole is expected to grow by 1.6% this year and by 1.8% in the coming year. For Portugal and Greece, economists fear even a decline in economic output. Germany, however, is expected to enjoy further strong growth. This was confirmed by the country’s leading economic institutes: they forecast growth of 2.8% this year and 2.0% in the next. Experts at the IMF also expect the upturn to slow somewhat. According to the German Federal Association for Information Technology, Telecommunications and New Media (BITKOM), the German ICT market will maintain its stable

No events occurred after the balance sheet date as at 31 March 2011 that are of major significance to GFT.

growth rate in 2011 and 2012. The industry association expects growth of 2.3% to a total of €133.0 billion in 2011 and further growth of 2.4% to €136.2 billion in 2012. Above-average growth is forecast for the IT services

➜

❘

Interim Management Report

segment: by 3.5% to €34.2 billion in 2011 and by 3.8%

The financial sector’s willingness to invest will continue to

to €35.5 billion in 2012. The association’s latest economic

positively impact the Services division over the course of

survey also reflects this upbeat mood: 89% of IT services

2011. The need for IT solutions for corporate and invest-

companies questioned expect revenue growth in 2011.

ment banking as well as outsourcing services will continue to grow. At the same time, it is expected that financial in-

The GFT Group regards the ongoing recovery of its key

stitutes will invest more heavily in their customer manage-

markets as a clear sign of its growth potential for financial

ment and core banking systems in 2011 and be forced to

year 2011 and expects the positive development to con-

address such future topics as mobile banking applications

tinue in both segments throughout the year. Due to the

to an ever greater extent. GFT has already successfully

consistently high level of capital spending in the financial

occupied these topics and gained sufficient expertise to be

sector, business in the Services segment is expected to

able to swiftly and efficiently meet the growing demand.

remain stable at its current high level. At the same time, growing demand from the industrial sector will help drive

The GFT Group therefore expects to continue the positive

growth in the Resourcing division across all sectors and

development of the past financial year in 2011. The Execu-

countries.

tive Board will closely monitor any risks for the company’s two business divisions resulting from the macroeconomic

The increasing stability of the industrial sector since late

development in order to introduce swift counter-measures

2010 will result in further strong demand for freelance

wherever necessary. Due to the high demand in relevant

staff. With its international placement of highly skilled IT

markets and our strictly aligned range of services, we are

specialists and engineers, the Resourcing division is well

optimistic that we can achieve further sustainable growth.

positioned to meet this demand and harness the current

The Executive Board therefore confirms the forecast made

economic upswing. While the segment’s Resource Man

in the Consolidated Financial Statements 2010: for 2011,

agement business continues to benefit from the growing

we expect to achieve total revenue of €275 million and

propensity of the industrial sector to invest in new equip-

earnings before taxes of €13 million.

ment, its Third Party Management business expects further direct opportunities from consistently high demand in the financial sector.

Stuttgart, 2 May 2011 GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz

Jean-François Bodin

Marika Lulay

Dr. Jochen Ruetz

Executive Board (Chairman)

Executive Board

Q1—2011

Consolidated Statement of comprehensive Income for the period from 1 January to 31 March 2011 GFT Technologies Aktiengesellschaft, Stuttgart

Partial Statement Affecting Net Income: Consolidated Income Statement First quarter

€

Revenue Other operating income

01.01.– 31.03.2011

01.01.– 31.03.2010

67,302,679.21

54,429,311.56

346,980.23

716,321.71

67,649,659.44

55,145,633.27

4,600.74

576.60

39,248,133.82

29,925,038.68

39,252,734.56

29,925,615.28

17,463,594.29

16,159,977.28

3,590,070.70

2,950,860.78

21,053,664.99

19,110,838.06

Cost of materials a) Expenses for raw materials and supplies and for purchased goods b) Costs of purchased services

Personnel expenses a) Salaries and wages b) Social security and expenditures for retirement pensions

Depreciation on non-current intangible assets and of tangible assets

313,422.50

283,058.82

Other operating expenses

5,100,093.93

4,315,715.25

Result from operating activities

1,929,743.46

1,510,405.86

Other interest and similar income

159,206.70

119,718.25

Profit share from associates

-2,817.02

-9,097.93

Depreciation on securities

63,874.05

0.00

2,030.40

0.00

Interest and similar expenses Financial result Earnings before taxes Taxes on income and earnings Net income from continued operations Net loss from discontinued operations

90,485.23

110,620.32

2,020,228.69

1,621,026.18

667,223.22

463,793.66

1,353,005.47

1,157,232.52

0.00

-35,014.39

1,353,005.47

1,122,218.13

0.00

1,353,005.47

1,122,218.13

Net earnings per share – undiluted

0.05

0.04

Net earnings per share – diluted

0.05

0.04

Net earnings per share from continued operations – undiluted

0.05

0.04

Net earnings per share from discontinued operations – diluted

0.05

0.04

Net income

– attributable to non-controlling equity holders – attributable to equity holders of the parent (consolidated net income)

➜

❘

Consolidated Interim Financial Statements

Partial Statement Not Affecting Net Income: Consolidated Income Statement First quarter

€

Net Income

01.01.– 31.03.2011

01.01.– 31.03.2010

1,353,005.47

1,122,218.13

153,800.00

256,650.00

0.00

153,800.00

256,650.00

-131,475.01

78,652.66

Financial assets available for sale (securities): – Change of fair value recognised in equity during the period – Reclassification amounts to the income statement

Exchange differences on translating foreign operations: – Profits/losses during the period – Reclassification amounts to the income statement

Income taxes on components of other result Other result

Total result

– thereof attributable to non-controlling shareholders – thereof attributable to shareholders of parent company

0.00

-131,475.01

78,652.66

0.00

-45,360.00

22,324.99

289,942.66

1,375,330.46

1,412,160.79

0.00

1,375,330.46

1,412,160.79

Q1â&#x20AC;&#x201D;2011

Consolidated Balance Sheet as at 31 March 2011 GFT Technologies Aktiengesellschaft, Stuttgart

Assets â&#x201A;Ź

31.03.2011

31.12.2010

31.12.2009

462,361.69

431,980.03

364,535.53

20,367,546.07

20,365,010.57

20,829,907.76

20,799,526.10

20,729,546.10

2,681,792.68

2,601,922.52

2,044,691.89

Non-current assets Intangible assets Licences, industrial property rights and similar rights Goodwill

Tangible assets Other equipment, office and factory equipment Construction on foreign property

91,969.27

104,365.67

146,776.26

2,773,761.95

2,706,288.19

2,191,468.15

12,638,397.19

12,702,271.24

0.00

41,191.93

44,008.95

36,165.05

0.00

12,679,589.12

12,746,280.19

36,165.05

404,771.40

349,408.58

Financial assets Securities Financial assets, accounted for using the equity method Investments

Other assets Current profits tax assets Deferred tax assets

587,436.65

585,029.38

655,816.14

4,958,684.05

4,948,002.63

5,813,304.61

42,234,150.93

42,189,897.89

29,775,708.63

58,175,380.78

54,799,670.75

41,757,487.92

1,632,800.00

1,384,000.00

2,235,800.00

403,124.97

243,550.42

204,920.81

23,999,031.06

26,232,995.13

35,471,848.76

Current assets Trade receivables Securities Current tax assets Cahs and cash equivalents Other assets

Non-current assets and disposal groups held for sale

3,419,941.78

3,727,586.93

1,886,174.47

87,630,278.59

86,387,803.23

81,556,231.96

0.00

2,049,496.73

87,630,278.59

86,387,803.23

83,605,728.69

129,864,429.52

128,577,701.12

113,381,437.32

➜

❘

Consolidated Interim Financial Statements

Shareholders‘ Equity and Liabilities €

31.03.2011

31.12.2010

31.12.2009

26,325,946.00

42,147,782.15

10,243,349.97

8,543,349.97

403,836.00

535,311.01

140,577.64

Shareholders´equity Equity attributable to equity holders of the parent Share capital – C onditional Capital € 8,280,000.00 (prev. year € 8,280,000.00) Capital reserve Retained earnings Other retained earnings Changes in equity not affecting net income Foreign currency translations Reserve of market assessment for securities Consolidated balance sheet loss

Interests of non-controlling equity holders

-274,000.00

-427,800.00

-410,420.00

-6,201,406.66

-7,554,412.13

-10,995,236.23

72,645,507.46

71,270,177.00

65,751,999.53

0.00

72,645,507.46

71,270,177.00

65,751,999.53

Provisions for pensions

664,225.40

652,225.40

457,472.44

Other provisions

916,244.00

969,795.00

879,895.84

Deferred tax liabilities

602,532.99

469,197.24

601,198.65

2,183,002.39

2,091,217.64

1,938,566.93

19,710,668.93

18,195,205.23

13,568,351.01

1,300,708.65

1,285,617.34

1,170,106.70

Liabilities Non-current liabilities

Current liabilities Other provisions Current income tax liabilities Financial liabilities Trade payables Other liabilities

Liabilities directly associated with non-current assets and disposal groups held for sale

633,419.99

0.00

21,924,814.33

27,873,659.18

23,277,976.61

11,466,307.77

7,861,824.73

5,999,709.79

55,035,919.67

55,216,306.48

44,016,144.11

0.00

1,674,726.75

55,035,919.67

55,216,306.48

45,690,870.86

57,218,922.06

57,307,524.12

47,629,437.79

129,864,429.52

128,577,701.12

113,381,437.32

Q1—2011

Consolidated Statement of Changes in Equity as at 31 March 2011 GFT Technologies Aktiengesellschaft, Stuttgart

€

Subscribed

Capital

Retained

capital

reserve

earnings Other retained earnings

As at 01/01/2010

26,325,946.00

42,147,782.15

8,543,349.97

26,325,946.00

42,147,782.15

8,543,349.97

Total income and expenses for the period 01/01-31/03/2010

As at 31/03/2010

Dividend payment May 2010

Total income and expenses for financial year 2010

Allocations to retained earnings 2010 – to other retained earnings

As at 31/12/2010

1,700,000.00

26,325,946.00

42,147,782.15

10,243,349.97

26,325,946.00

42,147,782.15

10,243,349.97

Total income and expenses for the period 01/01-31/03/2011

As at 31/03/2011

â&#x17E;&#x153;

â?&#x2DC;

Consolidated Interim Financial Statements

Changes in equity not affecting

Consolidated

Equity

Minority

Total

results

balance sheet

attributable to

interests

share capital

loss

equity holders

Foreign

Market

currency

assessment

translations

for securities

140,577.64

-410,420.00

-10,995,236.23

65,751,999.53

0.00

65,751,999.53

78,652.66

211,290.00

1,122,218.13

1,412,160.79

0.00

1,412,160.79

219,230.30

-199,130.00

-9,873,018.10

67,164,160.32

0.00

67,164,160.32

-2,632,594.60

0.00

-2,632,594.60

7,773,418.70

8,150,772.07

0.00

8,150,772.07

-1,700,000.00

0.00

394,733.37

-17,380.00

of the parent

535,311.01

-427,800.00

-7,554,412.13

71,270,177.00

0.00

71,270,177.00

-131,475.01

153,800.00

1,353,005.47

1,375,330.46

0.00

1,375,330.46

403,836.00

-274,000.00

-6,201,406.66

72,645,507.46

0.00

72,645,507.46

Q1—2011

Consolidated Cash Flow Statement for the period from 1 January to 31 March 2011 GFT Technologies Aktiengesellschaft, Stuttgart

First quarter

€

Net income Depreciation on non-current intangible and tangible assets Changes in provisions Other non-cash expenses/income Changes in trade receivables Changes in other assets Changes in trade liabilities and other liabilities Other changes of equity Cash flow from operating activities

Cash payments to acquire tangible assets Cash payments to acquire non-current intangible assets Cash flow from investing activities

Cash receipts from taking out financial loans Other changes in equity

01.01.– 31.03.2011

01.01.– 31.03.2010

1,353,005.47

1,122,218.13

313,422.50

296,203.82

1,473,912.70

1,921,857.16

-7,510.54

-114,272.08

-3,375,710.03

-5,165,565.15

134,981.91

-323,118.44

-2,195,934.75

-4,203,657.38

-131,475.01

0.00

-2,435,307.75

-6,466,333.94

-342,089.82

-151,596.99

-89,986.49

-8,079.61

-432,076.31

-159,676.60

633,419.99

822,792.39

0.00

33,292.66

633,419.99

856,085.05

Change in cash funds from cash-relevant transactions

-2,233,964.07

-5,769,925.49

Cash funds at the beginning of the periode

26,232,995.13

36,200,628.61

Cash funds at the end of the period

23,999,031.06

30,430,703.12

Cash flow from financing activities

➜

❘

Notes

Notes to the Interim Financial Statements as at 31 March 2011 GFT Technologies Aktiengesellschaft, Stuttgart

Fundamentals for the GFT Group’s Interim Financial Statements

··········································································································································

The Interim Financial Statements of the GFT Technologies Aktiengesell-

and valuation methods were used in these Interim Financial Statements

schaft Group (»GFT AG«) should be read in conjunction with the Annual

as in the last Consolidated Financial Statements as of 31 December 2010.

Financial Statements of GFT AG as of the end of the last financial year

The reporting format used in these Interim Financial Statements has

(31 December 2010). They were drawn up in euro (€) in accordance

changed slightly in comparison with the corresponding Interim Financial

with standard principles of accounting and valuation and conform to

Statements of the previous year; the previous year’s figures have been

the prescriptions set out in IAS 34, sections 37w and 37y of the German

adapted to the changed reporting format. New or amended standards

Securities Trading Act (WpHG) and the regulations for the Frankfurt

and interpretations to be applied as of the beginning of the financial

Stock Exchange.

year 2011 did not have any major effect on the Interim Financial State-

The Interim Financial Statements have been prepared according to the

ments.

International Financial Reporting Standards (IFRS) issued by the Inter

The Interim Financial Statements and the Interim Management Report as

national Accounting Standards Board (IASB) effective on the balance

of 31 March 2011 have neither been audited according to section 317

sheet date, which are to be applied within the EU. The same accounting

HGB, nor been reviewed.

Changes to the consolidated group and its associated companies

······································································································································

The following changes to the scope of consolidation have occurred since

of its registered office to Stuttgart. These changes became effective on

the Consolidated Financial Statements were closed on 31 December

1 October 2010. Subsequently on 13 August 2010, GFT AG sold 50%

2010:

of shares in GFT Business Development GmbH. GFT Business Develop-

On 10 February 2011, GFT UK Limited, London, founded the company GFT UK Invest Limited, domiciled in London, the UK. The newly formed company has been included in the consolidated group since 10 February 2011. GFT UK Invest Limited has not yet begun its operating activities; its initial inclusion in the consolidated accounts had no significant impact on the assets, financial and earnings position of the Group.

ment GmbH was deconsolidated on 13 August 2010 and has since been carried as an associated company (named Youdress GmbH), whose shares are carried in the balance sheet according to the equity method. In the financial years 2010 and 2009, GFT Business Development GmbH accounted for 0.0% of Group revenues. As of 31 December 2009 and on the date of divestment, its share in Group assets amounted to 0.0%. The deconsolidation of GFT Business Development GmbH had no ma-

The following changes to the scope of consolidation have occurred since

terial effect on the assets, financial and earnings position of the Group;

the Consolidated Financial Statements were closed on 31 March 2010:

income from the sale amounted to €11 thousand.

On 14 May 2010, GFT AG sold all its shares in the subsidiary GFT inboxx

On 13 August 2010, GFT AG also acquired all shares in the previously

GmbH, Hamburg. GFT inboxx GmbH was deconsolidated on 14 May

non-operating company Platin 569. GmbH, Frankfurt am Main, which

2010. In financial year 2009, GFT inboxx GmbH accounted for 2.1%

has been trading as GFT Innovations GmbH with registered office in

of the Group’s revenues; its share in the financial assets of the Group

Stuttgart since 23 September 2010. The above company was first con-

amounted to 1.6% as of 31 December 2009. The hiving off of

solidated as of its date of acquisition on 13 August 2010. Its contributi-

GFT inboxx GmbH had no material effect on the assets, financial and

on to consolidated revenues of the GFT Group in the period 1 January to

earnings position of the Group. Further information on the Group’s

31 December 2010 amounted to €0 thousand with an effect of the net

hiving off of GFT inboxx GmbH is provided in the explanations on dis-

income 2010 of €-215 thousand. As of 31 December 2010, the share in

continued operations.

Group assets of GFT Innovations GmbH amounted to 0.0%. The initial

On 13 August 2010, the memorandum of association of subsidiary GFT Business Development GmbH, Eschborn, was extensively altered. This included a change in its name to Youdress GmbH and the relocation

consolidation of GFT Innovations GmbH had no material effect on the assets, financial and earnings position of the Group.

Q1—2011

Discontinued operations

The GFT Group intended to dispose of its business activities in the Soft-

In a purchase agreement dated 14 May 2010, the software rights of GFT

ware division. The Executive Board of GFT AG had adopted a respective

AG were sold to a non-Group company. In a share purchase agreement

disposal plan and had been actively seeking a buyer since November

also dated 14 May 2010, GFT AG sold all shares in the subsidiary

2009; the disposal was expected to be completed in the second

GFT inboxx GmbH to the same buyer; the Software segment was thus

quarter of 2010. Most of the activities in this business division, and

disposed of. All assets and liabilities of the Software segment were

the respective employees, were pooled with the subsidiary GFT inboxx

transferred on 14 May 2010, with the exception of pension obligations

GmbH, Hamburg, Germany. All shares in this subsidiary were to be sold.

and the respective securities which the Group retains in contrast to the

Moreover, the Software division of GFT AG included disclosed software

original plan due to the developing sales process; this decision had no

rights which are also to be sold. The Software division to be sold was

impact on the net income of the financial year 2010. The disposal of the

identical with the Software segment, which is disclosed separately in

Software segment resulted in a loss of €464 thousand.

segment reporting.

The net loss after taxes of the discontinued operation is disclosed in a

Discontinuation of the business division will take the form of a disposal

separate line of the Consolidated Statement of Comprehensive Income

as a whole. As the division intended for disposal also represents a

(2010, Part Group Consolidated Income Statement). The Consolidated

disposal group as defined by IFRS 5, the disclosure and measurement

Balance Sheet also includes assets and liabilities pertaining to discontinu-

regulations of IFRS 5 have been applied.

ed operations, summarized as separate items (2010).

The discontinuation of the business division in the second quarter of the financial year 2010 was realised as follows:

Changes in equity

For the changes in equity capital between 1 January 2011 and 31 March

year 2011. At the Annual General Meeting to be held in May 2011,

2011, we refer to the Consolidated Statement of Changes in Equity

a proposal will be made to pay shareholders a dividend of €0.15 per

which is disclosed separately.

share, totalling €3,949 thousand, from the balance sheet profit of

As of 31 March 2011, the company’s share capital of €26,325,946.00

GFT AG as at 31 December 2010.

consists of 26,325,946 non-par value individual share certificates (no

There were no changes in the company’s authorised and conditional

change relative to 31 December 2010). These shares are bearer shares

capital between 1 January and 31 March 2011 relative to 31 December

and all grant equal rights.

2010. As of 31 March 2011, GFT AG did not hold any of its own shares,

In May 2010, a dividend of €0.10 per share was distributed to shareholders, totalling €2,633 thousand, from the balance sheet profit of the

nor did it purchase or sell any of its own shares in the period 1 January 2011 to 31 March 2011.

parent company GFT AG. No dividends have been paid so far in fiscal

Segment reporting

GFT has identified the three segments Services, Resourcing, and (until 14

segment. The Resourcing segment focuses on the placement of free-

May 2010) Software as reportable segments. The identification of these

lance IT specialists. The Software segment concerned the internal devel

segments was mainly based on the fact that the products and services

opment of software products, their distribution, and associated services.

offered in these segments show differences, and that the GFT Group is organised and controlled on the basis of these segments. Internal reporting to the Executive Board is based on the classification of group activities in these segments. The Software segment was sold in May 2010; we refer to the explanations on discontinued operations.

Internal controlling and reporting within the GFT Group, and thus also segment reporting, is based on IFRS accounting principles as applied in the Consolidated Financial Statements. The GFT Group measures the success of its segments by means of segment EBT (earnings before tax). Segment income and results also include transactions between the

The products and services with which the reportable segments generate

segments. Intersegment transactions take place at market prices on an

their income can be characterised as follows: all activities in connection

arm’s length principle.

with IT solutions (services and projects) are aggregated in the Services

➜

❘

Notes

As a general rule, the assets of the segments include all assets, except

For detailed information about the business segments, please refer to

for those from income tax and assets attributed to the holding activity.

the Appendix attached to the Notes to the Consolidated Financial State-

The segment liabilities include all liabilities, except for those from income

ments. It also includes disclosures concerning revenue from external

tax, financing, and liabilities in connection with the holding activity.

clients for each group of comparable products and services. The reconciliation of the segment figures to the corresponding figures in the Consolidated Financial Statements is as follows:

€ thsd.

Total segment revenue

01.01.– 31.03.2011

01.01.– 31.03.2010

68,908

59,545

Elimination of inter-segment revenue

-1,605

-4,281

Group revenue

67,303

55,264

2,091

1,592

-96

2,020

1,604

31.03.2011

31.03.2010

109,551

103,346

Total segment results (EBT) Non attributed expenses/profit of Group HQ Non attributed profit for eliminations of interim result Group result before taxes

€ thsd.

Total segment assets Non-attributed assets of Group HQ Securities Assets from income taxes Group assets

Total segment liabilities Non-attributed liabilities of Group HQ Liabilities from income taxes Group liabilities

The reconciliation discloses items which per definition are not compon ents of the segments. In addition, non-attributed items of Group HQ, e.g. from centrally managed issues, are also contained. Business transactions between the segments are also eliminated in the reconciliation.

14,271

2,964

5,949

6,952

129,864

113,335

54,834

43,769

482

461

1,903

1,940

57,219

46,170

Q1â&#x20AC;&#x201D;2011

Segment report GFT Technologies Aktiengesellschaft, Stuttgart

Services

â&#x201A;Ź thsd.

External sales Inter-segment sales Total revenues

Depreciation Non-cash income/expenditure other than depreciation

Software

31.03.2011

31.03.2010

31.03.2011

31.03.2010

28,892

26,620

835

28,892

26,623

851

-255

-244

-13

-24

Interest income

Interest expenses

-7

-62

Share of net profits of associated companies reported according to the equity method

-3

-9

1,439

1,288

-73

60,822

68,127

2,185

366

139

22,671

18,851

2,344

Segment result (EBT)

Segment assets Investment in associates reported according to the euity method Investment in non-current intangible and tangible assets

Segment liabilities

â&#x17E;&#x153;

Resourcing

Total

â?&#x2DC;

Notes

Eliminations

31.03.2011

31.03.2010

31.03.2011

31.03.2010

38,411

27,809

67,303

55,264

31.03.2011

Consolidated

31.03.2010

31.03.2011

31.03.2010

67,303

55,264

1,605

4,262

1,605

4,281

-1,605

-4,281

40,016

32,071

68,908

59,545

-1,605

-4,281

67,303

55,264

-49

-30

-304

-287

-9

-313

-296

-24

112

114

136

159

125

-22

-6

-29

-68

-2

-5

-3

-9

-3

-9

652

377

2,091

1,592

-71

2,020

1,604

48,729

33,034

109,551

103,346

20,313

9,989

129,864

113,335

419

155

432

160

32,163

22,574

54,834

43,769

2,385

2,401

57,219

46,170

Q1—2011

The table below shows information according to geographic regions for the GFT Group:

Revenue from sales to external clients 1

Non-current intangible and tangible assets

01.01.– 31.03.2011

01.01.– 31.03.2010

31.03.2011

31.03.2010

36.72

29.44

21.95

21.47

9.91

8.13

0.14

0.17

Spain

6.51

6.44

1.02

0.70

France

6.88

4.46

0.05

0.06

USA

1.61

1.64

0.00

Switzerland

2.17

1.33

0.13

0.08

Other foreign countries

3.50

2.99

0.31

0.32

67.30

54.43

23.60

22.80

€ million

Germany

Total

Determined by client location

Total company

Revenue from clients who account for more than 10% each of Group revenue is shown below:

Revenue

Segments in which this revenue is generated

€ million

01.01.– 31.03.2011

01.01.– 31.03.2010

01.01.– 31.03.2011

01.01.– 31.03.2010

Client 1

32.32

23.93

Services, Resourcing

Changes to contingent liabilities

As of 31 March 2011, there were no significant changes to contingencies and other financial commitments compared to the Consolidated Financial Statements as at 31 December 2010.

Investments

·· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

During the period between 1 January and 31 March 2011, the GFT Group invested €90 thousand in intangible fixed assets (1 January to 31 March 2010: €8 thousand) and €342 thousand in tangible assets (1 January to 31 March 2010: €152 thousand).

Related party disclosures

Compared to the disclosures made in the Notes to the Consolidated Financial Statements as of 31 December 2010, there were no changes in the composition of related parties nor in relations with such parties.

Stuttgart, 2 May 2011 GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz

Jean-François Bodin

Marika Lulay

Dr. Jochen Ruetz

Executive Board (Chairman)

Executive Board

Q1â&#x20AC;&#x201D;2011

Financial Calendar

Further information

Annual General Meeting

Write to us or call us if you have any questions. Our Investor Relations

31 May 2011

team will be happy to answer them for you. Or visit our website at www.gft.com/ir. There you can find further information on our com-

Interim Report as of 30 June 2011

pany and the GFT share.

11 August 2011

Interim Report as of 30 September 2011

GFT Technologies AG

9 November 2011

Investor Relations Andrea Wlcek Filderhauptstrasse 142 70599 Stuttgart Germany T +49 711 62042-440 F +49 711 62042-301 ir@gft.com

This Interim Report is also available in German. The online versions of the German and English Interim Reports are available on www.gft.com/ir.

IMPRINT Concept: GFT Technologies AG, Stuttgart, www.gft.com Text: GFT Technologies AG, Stuttgart, www.gft.com Creative concept and design: Impacct Communication GmbH, Hamburg, www.impacct.de

ÂŠ Coypright 2011: GFT Technologies AG, Stuttgart