GFT Interim Financial Report as of 31 March 2012 by GFT Technologies SE

interim financial report as of 31 March 2012

Q1–2012

Key figures according to IFRS

First quarter

01/01/– 31/03/2012

01/01/– 31/03/2011

Change

Income Statement Revenue

€m

57.65

67.30

-14.3%

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

€m

1.51

2.18

-30.7%

Earnings before interest and taxes (EBIT)

€m

1.14

1.86

-38.7%

Earnings before taxes (EBT)

€m

1.27

2.02

-37.1%

Net income

€m

0.63

1.35

-53.3%

Other non-current assets

€m

45.10

29.59

52.4%

Cash, cash equivalents and securities

€m

27.52

38.27

-28.1%

Other current assets

€m

57.86

62.00

-6.7%

ASSETS

€m

130.48

129.86

0.5%

Balance sheet

Non-current liabilities

€m

8.42

2.18

286.2%

Current liabilities

€m

45.52

55.03

-17.3%

Shareholders´ equity

€m

76.54

72.65

5.4%

SHAREHOLDERS' EQUITY AND LIABILITIES

€m

130.48

129.86

0.5%

Equity ratio

5.4%

Cash flow Cash flow from operating activities

€m

-12.45

-2.44

410.2%

Cash flow from investing activities

€m

-0.27

-0.43

-37.2%

Cash flow from financing activities

€m

0.09

0.63

-85.7%

1,346

1,307

3.0%

0.02

0.05

-53.3%

Employees Number of permanent employees (as of 31 March)

Share Earnings per share

€

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Highlights

Despite adverse market conditions, both business divisions got off to a solid start in the current financial year: in core operating activities, there was growth in revenue and EBT. For the current financial year, the Executive Board therefore confirms the forecast made in the Consolidated Financial Statements 2011 and expects total revenue of €250 million and earnings before taxes of €12 million in 2012 as a whole.

Revenue

€ million

Earnings before taxes

2011

2012

2011

€ million

64.51

2.00

66.07

3.53

74.50

3.50

67.30

57.65

272.38

57.65

2012

2.02

1.27

11.05

1.27

Contents Consolidated Interim Management Report

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Consolidated Interim Financial Statements

…

Notes

…

Q1–2012

Consolidated Interim Management Report of GFT Technologies AG as of 31 March 2012

Business environment Economic environment Macroeconomic development

72% of all companies surveyed in the ICT sector reported year-on-year growth in the first quarter. This figure for the sector as a whole was mirrored by the progress made by

The decision in favour of a larger Euro safety net led to a

Germany’s mid-size IT companies, whereby suppliers of

slight improvement in the global economic outlook in early

software and IT services fared even better – 79% reporting

2012. However, the risk of crisis remains ever-present. In

higher revenues than in the first quarter of 2011.

its World Economic Outlook of April 2012, for example, the International Monetary Fund (IMF) forecasts global economic growth of 3.5% for the current year – up

The upbeat sector mood was also reflected in the industry association’s business confidence index: both the BITKOM

0.2 %-points from its January forecast.

sector index and the BITKOM Mittelstand index were up

According to the IMF, the progress of the global economy

points (+12), respectively.

on the fourth quarter of 2011 to reach 63 (+3) and 64

depends to a large extent on finding a solution for the Euro zone‘s current problems. Prospects in the region continue to fall short of average growth due to the weakness of countries such as Greece, Italy, Spain and Portu gal. A lthough the IMF upgraded its January forecast somewhat, it still expects GDP in the Euro zone to fall by 0.3 %-points in 2012. Economic output is likely to shrink by half a percentage point in the first half of the year and recover somewhat in the second half. The prospects for Germany were also upgraded slightly. Over the year as a whole, the IMF’s forecast of 0.6% growth is now twice as much as it was three months ago. Sector development The mood of the German Information and Communica-

Course of business in the first three months Although the global economy continued to gain momentum over the past few months, the sense of uncertainty was still clearly apparent in the early part of 2012. Despite adverse conditions in the finance sector, both business divisions of the GFT Group got off to a solid start in the current financial year: in the core business of the Resourcing segment and the Services segment, total revenue grew by 11.4% to €57.65 million. This development was also reflected in an increase in operating earnings before taxes of 25% to €2.52 million. As a result, GFT achieved an operating margin before taxes of 4.4% in its seasonally weakest quarter of the year. The corresponding figure for 2011 as a whole was 4.1%.

tion Technology (ICT) sector continued to improve at its

Key earnings figures for the first quarter of 2011 still

current high level in the first quarter – as did the general

included lower-margin activities with a major client in Third

mood among mid-size IT companies (the so-called »Mit

Party Management with revenue of €15.64 million. These

telstand«). This was the result of a survey published in

activities were discontinued in late 2011. As a result, a

April 2012 by the German Federal Association for Informa-

direct comparison of first quarter figures shows a decline in

tion Technology, Telecommunications and New Media

revenue from €67.30 million last year to €57.65 million in

(BITKOM e.V.).

the first three months of 2012. Moreover, the first quarter of 2012 was burdened by one-off expenditure of €1.25 million for our international innovation initiative CODE_n. As this focused in 2012 on our CeBIT trade fair presence, these non-recurring costs were only expensed in the reporting period. A direct comparison of first quarter figures

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Consolidated Interim Management Report

therefore shows a decrease in pre-tax earnings (EBT) from

Despite a significant decline in revenue, the Resourcing

€2.02 million last year to €1.27 million in the first three

division also achieved year-on-year growth in its segment

months of 2012. In terms of revenue, the Resourcing division once again benefited from strong demand for freelance IT specialists and engineers in the manufacturing industry and contin-

result to €0.68 million (prev. year: €0.65 million). In addition to successful measures aimed at raising efficiency, the main reason was a shift in revenue volumes in favour of the higher-margin Resource Management business.

ued the successful development of its Resource Manage-

Against the backdrop of diverging growth rates in its

ment business. In total, segment revenue of €27.16 million

various client sectors, the GFT Group expects moderate

was generated (prev. year: €38.41 million). There was par-

growth in the first six months of its current financial year.

ticularly strong growth in the division’s activities in France.

An increasing propensity to invest in the finance sector

However, this positive development in the field of Resource

– expected for the second half of the year – is likely to

Management failed to compensate for revenue losses in

drive further growth. In particular, demand from clients in

Third Party Management. As a consequence, revenue in

the field of corporate and investment banking will boost

the Resourcing segment fell by 29% in the period under

revenue in the Services division. The Resourcing division

review. If one disregards the loss of revenue with the afore-

will continue to benefit from strong demand for freelance

mentioned major client, the segment achieved growth of

specialists in the industrial sector. The Executive Board

7% in the first quarter.

therefore confirms the forecast it made in the Consoli-

Despite further cautious demand from our clients in the corporate and investment banking sector, the Services division succeeded in raising its high revenue level: in the first

dated Financial Statements 2011 and continues to expect total revenue of €250 million and earnings before taxes of €12 million in 2012.

three months of 2012, the segment generated revenue of €30.49 million – an increase of 6% over the previous year (€28.89 million). This growth was largely due to the acquisitions made in Switzerland and the USA during 2011

GFT share

which were consolidated for the first time during the first quarter. Stable demand for outsourcing services and smart

The stock markets got off to a strong start in 2012. In

IT solutions to meet regulatory demands also had a posi-

Germany, both the DAX and TecDAX indices were already

tive impact on revenue growth.

up significantly in the first month of trading. The blue-chip

Compared to the same period last year, earnings before taxes fell by 37% to €1.27 million (prev. year: €2.02 million) for the reasons stated above. However, the one-off costs for the CODE_n innovation initiative will not have any significant impact on EBT over the remaining quarters.

DAX index broke through the 6,000-point barrier in the first trading days of the year. This development was driven mainly by positive economic data from the USA, China and Germany. The start of the reporting season for US companies also encouraged this upbeat mood. In Germany, the IFO business confidence index for February was better than

Earnings of the two operating divisions displayed growth

expected. In view of a further improvement in the global

in the reporting period: the Services division raised its

economic environment, the upward trend on the stock

segment result by 26% and contributed the largest share

markets continued throughout the quarter. The European

to total earnings with €1.81 million. A slight increase in

debt crisis took a back seat as the stock markets experi-

revenue, positive margin effects from new acquisitions and

enced a further surge in liquidity. The DAX continued to

a high level of capacity utilisation in both nearshore and

climb and reached 7,000 points in March for the first time

farshore operations in the UK, Spain, Brazil and the USA

since summer 2011. On 30 March 2012, the index closed

had a positive impact on segment earnings.

at 6,947 points and thus achieved growth of 14% since the year started.

Q1–2012

The tech-stock index TecDAX began the new year at a low

Following the publication of key figures for financial year

of 685 points. Buoyed by the upbeat mood of the world’s

2011, the analysts of LBBW and Warburg Research set an

stock markets, however, it started a long-term upward

upside target of €4.00 and €5.00, respectively, and upheld

trend. In February, it left the 750-point mark well and

their »buy« recommendation for the GFT share. Hauck

truly behind and gained a further 2% or so in March. The

und Aufhäuser raised their upside target from €4.20 to

TecDAX index was up 15% on the year to date and ended

€4.70 and also recommended buying the share. Analysts

the quarter at 790 points.

at equinet Bank AG also maintained their »buy« rating and

The GFT share got off to a good start in 2012. After closing 2011 at €2.72, the share had already climbed to its first year-high of €3.05 by 11 January. Buoyed by the general upbeat mood of the market, the GFT share continued to make encouraging progress over the quarter and cemented its position above the €3.00 threshold. Due to a few high sales orders, however, there were several temporary price markdowns in February and March which were offset slightly by the announcement of good company results in March. Thanks to the consistently positive

raised their target from €3.10 to €4.40.

Shareholder structure There were no significant changes in the shareholder structure of GFT Technologies AG in the period under review. Company founder Ulrich Dietz continues to hold 28.08% of shares. Maria Dietz owns 9.68% of voting rights, while Dr Markus Kerber, a former member of GFT’s Supervisory Board, holds 5.00%. The free float portion amounts to 57.24% of shares.

market environment, the share soon climbed back to the €3.00 mark. At the end of the reporting period, the GFT share was quoted at €3.10 – up 13% on its year-opening price of €2.75.

Shareholder structure

Ulrich Dietz

28.08%

Maria Dietz

9.68%

Dr. Markus Kerber Free float

5.00% 57.24%

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Consolidated Interim Management Report

Indexed share price performance 120 115

GFT share

110

T echnology All Share Performance Index

105 100

2 January 2012 €2.75 = 100%

30 March 2012 €3.10

Information on the GFT share Q1 2012

Q1 2011

Year-opening quotation (XETRA)*

€2.75

€4.33

Closing quotation on 30 March (XETRA)*

€3.10

€4.10

Percentage change since year-opening

+13%

-5%

Highest price (XETRA)*

€3.20 (02.03.2012, 13.03.–16.03.2012, 20.03.–21.03.2012)

€4.86 (18.01.2011)

Lowest price (XETRA)*

€2.75 (02.01.2012)

€3.62 (15.03.2011)

€81.61 million

€107.94 million

€0.02

€0.05

15,266

42,217

Market capitalisation as of 30 March 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 no par value

26,325,946

Q1–2012

Development of revenue In the first three months of 2012, the GFT Group gener-

In the period under review, the Services segment gener-

ated revenue of €57.65 million. This corresponds to a fall

ated revenue of €30.49 million and thus raised the

of 14% compared to the previous year (€67.30 million)

previous year’s high revenue level by a further 6% (prev.

and resulted from the complete reduction in business with

year: €28.89 million). The increase was largely due to the

a major Resourcing division client from the finance sector

effects of acquisitions made in 2011 in Switzerland and

at year-end 2011. The segment accounted for €27.16 mil-

the USA which were clearly visible for the first time in the

lion of total revenue in the period under review (prev. year:

first quarter of 2012. Stable demand from the finance

€38.41 million). The Services division raised segment rev-

sector for IT solutions to implement regulatory compliance

enue by 6% to €30.49 million (prev. year: €28.89 million).

requirements, as well as for core banking solutions and outsourcing services, had a positive impact on the develop-

Revenue by segment

ment of revenue in this segment.

Following the decline in revenue of the Resourcing division,

The Resourcing division continued its successful devel

there was a shift in the breakdown of revenue by segment in favour of the Services division. Compared to 43% in the previous year, the Services segment accounted for 53% of the GFT Group’s total revenue in the period under review. There was a corresponding fall in the proportion of the Resourcing division to 47% (prev. year: 57%). Of this total, the declining Third Party Management business accounted for 9% (prev. year: 27%) and the Resource Management business for 38% (prev. year: 30%).

opment of the past financial year but was unable to compensate for the planned revenue loss from a major client. In the first three months of the current financial year, segment revenue amounted to €27.16 million – 29% less than in the same period last year (€38.41 million). This decline in revenue was mainly reflected in the segment’s lower-margin Third Party Management business, whose contribution fell to €5.23 million (prev. year: €17.87 million). The higher-margin Resource Management business developed on target and was able to benefit from strong demand for freelance IT specialists. Revenue in this division rose by 7% to €21.93 million (prev. year: €20.54 million).

Revenue by segment

Revenue by country

Q1 2012

€ million

Resourcing

47%

27.16

Services

53%

30.49

Q1 2012

€ million

Germany

37%

21.43

France

17%

9.75

16%

9.30

Spain

12%

6.65

Switzerland

3.45

USA

2.60

Other countries

4.47

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Consolidated Interim Management Report

Revenue by country

Despite adverse market conditions, there was a slight

Germany contributed €21.43 million to total revenue

increase in the traditionally high level of revenue generated

(prev. year: €36.72 million) and thus remains the GFT Group’s largest sales market. The year-on-year fall in revenue of 42% was due to a reduction in revenue in the field of Third Party Management. Strong demand for IT experts and engineers in the industrial sector, however, boosted revenue in the company’s Resource Management business. The Services segment in Germany benefited from stable long-term projects with clients in the finance sector. Due to the positive development of revenue in other countries, Germany’s share of total revenue fell to 37% (prev. year: 55%). With strong growth of 42%, France accounted for revenue of €9.75 million (prev. year: €6.88 million) and established itself for the first time as the GFT Group’s second largest sales market with 17% of total revenue (prev. year: 10%). This leap in revenue resulted mainly from industrial clients in the Resourcing division, in which existing projects were expanded and new clients added. During the period under review, there was a marked shift in activities towards the higher-margin Resource Management business. In the UK, the difficult market conditions in the finance sector observed in late 2011 continued to impact revenue in the first quarter of 2012. Although developments were more positive than originally assumed at the beginning of the year, revenue of €9.30 million fell short of the previous year’s high level (€9.91 million). In the period under review, sales to UK clients accounted for 16% of total revenue (prev. year: 15%).

with clients in Spain. Stable long-term projects and consistently strong demand from European financial institutes for outsourcing services helped fuel this growth. A total of €6.65 million (prev. year: €6.51 million) was generated with clients on the Spanish market in the first three months of the year, accounting for 12% of total revenue (prev. year: 10%). In Switzerland, the acquisition of Asymo AG and the expansion of project volumes in both business divisions helped boost revenue. With revenue of €3.45 million in the period under review (prev. year: €2.17 million), year-on-year growth amounted to 59%. As a result, the country’s share of total revenue increased from 3% last year to 6%. In the USA, organic growth in corporate and investment banking and the first-time consolidation of the acquired consulting division of G2 Systems led to revenue growth of 61% to €2.60 million (prev. year: €1.61 million). This resulted in an increase in the country’s share of total revenue to 4% (prev. year: 2%). The proportion of total revenue generated by clients in »Other countries«, including Brazil, the Benelux states and Italy, amounted to 8% (prev. year: 5%). Projects with clients in these countries resulted in revenue of €4.47 million, up 28% on the same period last year (€3.50 million). The main reason was an expansion of the company’s service project business in Italy, Belgium and Brazil.

Q1–2012

Earnings position Revenue by industry

In the period under review, earnings before taxes (EBT)

With a share of total revenue of 60%, there was a slight

of the GFT Group amounted to €1.27 million and thus

decline in the importance of the financial services industry (prev. year: 66%). However, it continues to represent the most important sector for the GFT Group. The planned reduction in revenue with a major client in the Resourcing division had a dampening effect on revenue in the period under review. In the first three months of 2012, projects with banks and insurance companies accounted for total revenue of €34.35 million (prev. year: €44.60 million).

fell well short of the prior-year figure (€2.02 million). The operating margin before taxes decreased by 0.8 %-points, from 3.0% in the previous year to 2.2%. All in all, earnings in the first quarter of 2012 were above expectations as costs included an amount of €1.25 million in marketing expenditure for the CODE_n innovation initiative and CeBIT fair presence. When considering the Group’s business divisions, the

Revenue with clients in the postal and logistics industry fell year on year by 53% to €2.22 million (prev. year: €4.75 million) and thus accounted for 4% of total revenue (prev.

Services segment in particular made a far stronger contribution to total earnings thanks to effects from new acquisitions in 2011 and an improved order position

year: 7%).

compared with the two preceding quarters. Earnings in

The GFT Group generated 36% of total revenue with

year.

the Resourcing segment were slightly up on the previous

clients in the »Others« category, which also includes clients from the manufacturing industry (prev. year: 27%). Year-on-year revenue growth of 17% was mainly driven by strong demand for freelance IT experts and engineers. In the first three months of 2012, the GFT Group generated revenue of €21.08 million with clients in these sectors

As of 31 March 2012, earnings before interest and taxes (EBIT) amounted to €1.14 million and were thus €0.72 million below the prior-year figure (€1.86 million). As a consequence, earnings before interest, taxes and depreciation/amortisation (EBITDA) on property, plant and equipment and intangible assets were also

(prev. year: €17.95 million).

down on the previous year at €1.51 million (prev. year: €2.18 million). After the first three months of 2012, the quarterly net

Revenue by industry

income of the GFT Group amounted to €0.63 million, corresponding to a decline of €0.72 million in earnings after taxes (prev. year: €1.35 million). The calculated tax ratio rose from 33% in the previous year to 51% due to an unbalanced distribution of earnings between the individual national subsidiaries in the first quarter. Earnings per share deteriorated by €0.03 in the period Q1 2012

€ million

60%

34.35

2.22

36%

21.08

under review to €0.02 per share (prev. year: €0.05 per share). These figures are based on an average of

Financial service providers Post/logistics Others

26,325,946 outstanding shares.

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Consolidated Interim Management Report

Group earnings position by segment

Services € million

Resourcing

Total

Others

Q1/11

Q1/12

Q1/11

Q1/12

Q1/11

Q1/12

Q1/11

Q1/12

1.44

1.81

0.65

0.68

-0.07

-1.22

2.02

1.27

Group earnings position by segment

The »Others« category comprises balance sheet effects,

Despite the ongoing volatility of its market environment,

as well as non-allocated costs of the holding company and

pre-tax earnings in the Services segment amounted to €1.81 million in the first quarter of 2012 and were thus 26% above the prior-year figure (€1.44 million). This improvement in earnings was largely due to the new acquisitions made in June and October 2011; comparable figures were not included in earnings figures for the first three months of 2011. Compared to the first quarter of 2011, the operating margin rose by 0.9 %-points to 5.9% (prev. year: 5.0%). In the period under review, earnings in the Resourcing segment reached €0.68 million and were thus 4% above the prior-year figure (€0.65 million) – despite consistently adverse market conditions. The operating margin improved by 0.8 %-points to 2.5% (prev. year: 1.7%). This was largely due to reduced revenue in the segment’s lowermargin Third Party Management business. In spite of the significant reduction in revenue, earnings from Third Party Management activities were only slightly down on the previous year at around break-even (prev. year: €0.01 million). In the Resource Management business, earnings rose by 5% to €0.68 million (prev. year: €0.64 million).

consolidation amounts which cannot be directly charged to either of the two aforementioned divisions. Due in particular to expenses recognised in connection with the CODE_n project and CeBIT fair presence, pre-tax earnings in the first quarter were well below the prior-year figure at €-1.22 million (prev. year: €-0.07 million).

Earnings position by income and expense items As of 31 March 2012, other operating income amounted to €0.98 million and was thus €0.63 million higher than in the previous year (€0.35 million). This increase in other operating income was mainly due to income from the liquidation of provisions amounting to €0.48 million and write-ups on marketable securities of €0.19 million. The remaining changes resulted from other operating income, benefits in kind and income from the derecognition of liabilities. As of 31 March 2012, the cost of materials – mainly comprising the purchase of external manpower – amounted to €27.47 million and was thus well below the prior-year figure (€39.25 million). This decline resulted from the significant reduction in Third Party Management revenue and the respective decrease in the purchase of external manpower. As a proportion of revenue, the cost of materials consequently fell by 10 %-points year on year to 48% (prev. year: 58%).

Q1–2012

Financial position Personnel expenses rose by €2.18 million to €23.23 mil-

As of the end of the first quarter, cash, cash equivalents

lion (prev. year: €21.05 million). This 10% increase in per-

and securities amounted to €27.52 million and were

sonnel expenses was mainly due to the rise in headcount

thus €12.16 million below the corresponding figure at the

following new acquisitions and salary increases granted

end of 2011 (€39.68 million). The decline was mainly due

in 2011. As a proportion of revenue, personnel expenses

to a significantly lower level of liquid funds, which fell by

were up strongly by 9 %-points to 40% (prev. year: 31%).

€12.63 million to €19.84 million following payments to

This was a result of the increased revenue share of the

external staff and company acquisitions in the second and

Services segment of 53% in the first quarter of 2012 (prev.

fourth quarters of 2011.

year: 43%).

Compared to the year-end figure (€50.96 million), trade

Depreciation of intangible and tangible assets

receivables increased to €55.29 million. This rise was

amounted to €0.37 million as of 31 March 2012 and was

largely due to overdue receivables from a major client. As

thus €0.06 million above the prior-year figure (€0.31 mil-

of 31 March 2012, trade payables amounted to €17.91

lion). However, this had only a minor impact on ordinary

million and were thus well below the corresponding figure

operating profits.

on 31 December 2011 (€28.63 million). This decrease

Other operating expenses increased to €6.43 million in the first three months of the financial year, corresponding to a year-on-year increase of 26% (prev. year: €5.10

resulted mainly from the significant reduction in Third Party Management revenue and the related purchase of external staff.

million). The cost increases were mainly attributable to

Following a very favourable working capital ratio at year-

higher operating, administrative and selling expenses,

end 2011, cash flows from operating activities were

which rose by €1.30 million to €5.95 million in 2012 (prev.

negative at €-12.45 million (prev. year: €-2.44 million).

year: €4.65 million) due to increased business activities and

Compared to the same period last year, the typical increase

costs attributable to CODE_n. This item also includes other

in working capital during the first quarter was stronger

expenses which are not out-of-period, other taxes and

in the first quarter of 2012 due to the deterioration in

exchange rate losses.

customer payment behaviour.

As of 31 March 2012, income taxes amounted to

At €-0.27 million, cash flows from investing activities

€0.64 million and were thus just €0.03 million below the

were up €0.16 million on the previous year (€-0.43 mil-

prior-year figure (€0.67 million). The calculated tax ratio

lion); compared to last year, there was a decrease in capital

increased from 33% to 51% due to an unbalanced distri-

expenditure, including IT procurements.

bution of earnings between the national subsidiaries.

As of 31 March 2012, cash flows from financing activities totalled €0.09 million. This amount resulted exclusively from a foreign subsidiary’s short-term use of credit lines. In the previous year, the corresponding figure amounted to €0.63 million.

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Consolidated Interim Management Report

Asset position As of 31 March 2012, the balance sheet total of the

On the liabilities side, the only notable changes were

GFT Group was down €7.80 million at €130.48 million. At

among the current liabilities; equity was slightly up on the

the end of the financial year 2011, the total was €138.28

year-end figure. As of 31 March 2012, equity amounted

million.

to €76.54 million and was thus €0.93 million above the corresponding figure on the balance sheet date of

On the asset side, there was a significant change in current assets and in particular the items cash and cash equivalents, and trade receivables. Non-current assets, however, were largely unchanged. Compared to 31 December 2011, they fell by €0.21 million to €51.36 million,

31 December 2011. This improvement was largely due to a reduction in the balance sheet loss to €-5.09 million. As a result, the equity ratio rose to 59%, compared to 55% at the end of 2011. On the liabilities side, there was little change in non-

mainly as a result of a reduction in tax claims. As of 31 March 2012, current assets were well below their year-end level (€86.71 million) and fell to €79.12 million. Within this item, liquid funds decreased strongly by

current liabilities which amounted to €8.42 million as of the balance sheet date; at year-end 2011, the corresponding figure was €8.59 million.

€12.63 million to €19.84 million, while trade receivables increased by €4.33 million to €55.29 million.

Group balance sheet structure

ASSETS € million

31/12/2011 31/03/2012

31/03/2012 31/12/2011

EQUITY & LIABILITIES € million

Cash, cash equivalents and securities

39.68

27.52

45.52

54.07

Current liabilities

Other current assets

53.25

57.86

8.42

8.59

Non-current liabilities

Other non-current assets

45.35

45.10

76.54

75.62

Equity capital

138.28

130.48

138.28

Q1–2012

There was a significant decline in current liabilities

The »Others« category comprises 7 employees more than

during the period under review, which fell by €8.55 million

in the previous year. The holding company thus employed

to €45.52 million. Within this item, there was a strong

46 people on the reporting date.

reduction in trade payables to €17.91 million, compared with €28.63 million as of 31 December 2011. In contrast, other provisions rose to €17.52 million (31 December

Employees by division as of 31 March

2011: €17.07 million) and other liabilities to €7.74 million (31 December 2011: €6.45 million). Services

The equity/non-current assets ratio – the yardstick for solid balance sheet structures – improved to 149% as of 31 March 2012 (31 December 2011: 147%).

Employees

Resourcing Others Total

2012

2011

1,199

1,166

101

102

1,346

1,307

The number of people employed in Germany as of 31 March 2012 amounted to 275. This was 2% or 7 persons below the prior-year figure. Staff employed outside

As of 31 March 2012, the GFT Group employed a total of 1,346 people and thus 3% or 39 persons more than on 31 March 2011. The number of employees is calculated on the basis of full-time staff, whereby part-time staff are in-

Germany rose by 46 to a total of 1,071 employees (prev. year: 1,025). As a result, the proportion of total staff employed outside Germany now amounts to 80% (prev. year: 78%).

cluded on a pro rata basis. There was also a slight increase

The average number of freelancers employed fell strongly

in headcount in comparison to the preceding quarters. On

to 941 (prev. year: 1,337). This resulted from a reduction

31 September 2011, GFT had 1,321 employees and on

in activities for a major client in the field of Third Party

31 December 2011 1,337.

Management.

At the end of the reporting period, a total of 1,199 people were employed in the Services division, corresponding to

Employees by country as of 31 March

year-on-year growth of 3% or 33 persons. This increase 2012

2011

Germany

275

282

over 31 March 2011 was mainly due to the acquisition of Asymo AG in Switzerland and the consulting division of G2 Systems in the USA. There was strong headcount

Brazil

149

158

crease in the number of staff employed in Spain, compared

France

to the previous year.

Switzerland

Spain

807

789

USA

1,346

1,307

growth in both countries. There was also a significant in-

Headcount in the Resourcing division remained virtually unchanged – falling from 102 on the same date last year to 101 employees as of 31 March 2012.

Total

Foreign share in %

➜

❘

Consolidated Interim Management Report

Research and development

Subsequent events

Research and development expenses of the GFT Group in

No events occurred after the balance sheet date as at

the first quarter of 2012 amounted to €1.00 million. The

31 March 2012 that are of major significance to GFT.

Group thus almost doubled its R&D expenditure compared to 31 March 2011 (€0.52 million). These expenses resulted mainly from R&D activities in connection with the following strategic initiatives: a-touch: in the first quarter of 2012, GFT continued to develop the IT-aided solution for advisors in the field of private banking and wealth management. The application provides system-supported implementation of all compliance requirements. Thanks to its additional security components, it is also suitable for use on mobile devices.

Opportunity and risk report In the first three months of 2012, there were no material changes with regard to the comprehensive discussion of opportunities and risks provided in the Management Report accompanying the Consolidated Financial Statements for 2011. The risk position of the GFT Group is thus unchanged.

SAP Competence Centre: GFT develops suitable application possibilities to help banks convert their systems to SAP software. Mobile Finance: GFT intensified its R&D activities in the

Forecast report

field of platform-independent mobile applications for financial service providers; for example with the expansion of its Mobile Finance Competence Centre founded in 2009.

Macroeconomic development Although the prospects for the global economy are somewhat more optimistic than at the end of last year, the

As of May 2011, GFT has pooled all R&D activities in the

International Monetary Fund (IMF) has not yet fully lifted

field of applied innovation management in its internal

its warnings. On the contrary, it believes that the risk of a

»Applied Technologies Group«.

further crisis is still very present. The IMF points, for example, to the geopolitical unrest in Iran which may push the

In order to ensure consistently high quality in its global

oil price up even further. The high budget deficits of the

development efforts, GFT continued to optimise software

USA and Japan are also still classified as a risk factor for

development processes in accordance with the inter

the financial markets. Finally, the IMF believes that these

national CMMI© (Capability Maturity Model Integration)

problems may be exacerbated by the Euro zone’s sovereign

standard.

debt crisis. In its World Economic Outlook of April 2012, the IMF predicts growth of 4.1% for 2013 – 0.6 %-points above its forecast for the current year. The outlook for the Euro zone is also somewhat more optimistic for 2013 than for 2012. Following a slight recession this year, the IMF forecasts growth of 0.6% for 2013. The IMF sees signs of improvement especially in such crisis-hit countries as Spain and Italy, with positive consequences for the entire Euro zone. However, these latest improvements are highly fragile, warn the IMF’s experts. Unemployment in the Euro zone is also expected to remain high for some time.

Q1–2012

The economists upheld their forecast for Germany made

Revenue and earnings forecast

in January 2012, predicting growth of 1.5% for 2013 –

The GFT Group sees growth potential in various sectors for

0.9 %-points above the country’s expected growth in the current year.

Sector development

its financial year 2012 and will continue to work on ways to exploit this potential. Business will be dominated by the diverging growth rates in those markets of importance for GFT. Whereas the first half of the year is still likely to

The prospects for Germany’s Information and Commu-

be influenced by cautious capital spending in the finance

nication Technology (ICT) sector remain favourable. In its

sector – especially in the field of corporate and investment

forecast published in March 2012, the German Federal

banking – growth is expected to be driven by the financial

Association for Information Technology, Telecommunica-

services industry and the industrial sector in the second

tions and New Media (BITKOM) predicts revenue of €73.2

half of the year.

billion for 2012, representing growth of 4.5%. The IT Services segment alone is expected to generate revenue of

With its international network of specialists, the

€35.5 billion. This would correspond to growth of 3.8%.

Resourcing division is well placed to serve the growing

The results of a BITKOM survey of sector mood in April

and engineers. Strong growth is expected above all in the

2012 confirm these forecasts. 78% of all companies

field of Resource Management in France and Germany

interviewed expect increasing revenues in 2012 compared

during the course of the year. In addition to the expan-

with the previous year – among suppliers of software and

sion of projects with existing clients, significant revenue is

IT services, the figure is as high as 85%.

likely to be generated with new customers. Effective cost

The sector mood is equally upbeat with regard to manpower requirements. Some 74% of mid-size IT companies plan to hire new staff in 2012. BITKOM expects that the sector as a whole will create 5,000 to 6,000 additional jobs this year. 63% of companies are suffering from a shortage of skilled workers. Technologies such as cloud computing, the growing spread of tablet computers and smartphones, and the related mobile apps, are expected to add further momentum to the sector’s development. There is currently growing demand from both companies and private consumers for new devices, applications and services.

need of many companies for skilled and flexible IT experts

management and a greater focus on the higher-margin Resource Management business – already started in 2011 – will also have a positive impact on segment earnings. The completed reduction of business with a major client in the field of Third Party Management will lead to a decrease in revenue of €48 million in financial year 2012. Due to the low margins of this business, however, this will not have a noticeable impact on EBT.

➜

❘

Consolidated Interim Management Report

As of the third quarter of 2012, the Services division is expected to benefit from the finance sector’s increased propensity to invest. Demand for outsourcing services, core banking solutions and IT solutions to implement compliance regulations will remain strong. At the same time, banks are likely to invest more in core banking and customer management systems, while demand for smart IT solutions in the field of corporate and investment banking is also expected to rise. In 2012, the segment aims to place greater emphasis on targeting growth markets, such as mobile finance applications. With its focus on the finance sector and selected growth markets, as well as a range of products and services strictly aligned with the needs of its clients, the GFT Group has laid a solid foundation for sustainable growth. We will continue to work on exploiting the synergy potential created by our two business divisions and developing our expertise in future-oriented topics. Amidst growing signs of stability in the finance sector and consistently strong demand in the manufacturing industry, the Executive Board of GFT can confirm the forecast it made in the Consolidated Financial Statements 2011: for 2012 as a whole, we expect revenue of €250 million and pre-tax earnings of €12 million.

Stuttgart, 7 May 2012 GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz

Jean-François Bodin

Marika Lulay

Dr. Jochen Ruetz

Executive Board (Chairman)

Executive Board

Q1–2012

Consolidated Statement of comprehensive Income for the period from 1 January to 31 March 2012 GFT Technologies Aktiengesellschaft, Stuttgart

Partial Statement Affecting Net Income: Consolidated Income Statement First quarter

€

Revenue Other operating income

01/01/– 31/03/2012

01/01/– 31/03/2011

57,649,528.39

67,302,679.21

984,160.19

346,980.23

58,633,688.58

67,649,659.44

74.25

4,600.74

27,469,518.61

39,248,133.82

27,469,592.86

39,252,734.56

19,604,764.24

17,463,594.29

3,624,847.00

3,590,070.70

23,229,611.24

21,053,664.99

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

370,535.90

313,422.50

Other operating expenses

6,425,400.28

5,100,093.93

Result from operating activities

1,138,548.30

1,929,743.46

131,116.57

159,206.70

0.00

Other interest and similar income Income from investments Profit share from associates Depreciation on securities Interest and similar expenses Financial result Earnings before taxes

2,949.94

-2,817.02

0.00

63,874.05

3,084.99

2,030.40

130,981.52

90,485.23

1,269,529.82

2,020,228.69

Taxes on income and earnings

643,640.96

667,223.22

Net income

625,888.86

1,353,005.47

0.00

625,888.86

1,353,005.47

Net earnings per share – undiluted

0.02

0.05

Net earnings per share – diluted

0.02

0.05

– attributable to non-controlling equity holders – attributable to equity holders of the parent

➜

❘

Consolidated Interim Financial Statements

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

€

01/01/– 31/03/2012

01/01/– 31/03/2011

Net income

625,888.86

1,353,005.47

259,727.78

153,800.00

0.00

259,727.78

153,800.00

42,574.27

-131,475.01

0.00

42,574.27

-131,475.01

Financial assets available for sale (securities): – C hange of fair value recognised in equity during the financial year – Reclassification amounts to the Income Statement

Exchange differences on translating foreign operations: – Profits/losses during the financial year – Reclassification amounts to the Income Statement

Income taxes on components of other result

0.00

Other result

302,302.05

22,324.99

Total result

928,190.91

1,375,330.46

0.00

928,190.91

1,375,330.46

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

Q1â&#x20AC;&#x201C;2012

Consolidated Balance Sheet as at 31 March 2012 GFT Technologies Aktiengesellschaft, Stuttgart

Assets â&#x201A;Ź

31/03/2012

31/12/2011

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

886,965.91

945,085.00

36,359,510.32

36,399,830.18

37,246,476.23

37,344,915.18

2,706,975.42

2,752,150.63

59,662.54

54,780.08

2,766,637.96

2,806,930.71

6,262,849.07

6,225,839.07

50,306.04

47,356.10

0.00

6,313,155.11

6,273,195.17

Other financial assets

413,329.46

433,155.26

Current tax assets

444,056.51

514,567.53

Goodwill

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

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

Deferred tax assets

4,177,208.03

4,201,543.60

51,360,863.30

51,574,307.45

55,287,592.97

50,962,108.83

1,415,750.00

982,520.00

212,458.99

582,758.96

19,844,633.87

32,472,593.37

211,118.27

402,304.83

Current assets Trade receivables Securities Current tax assets Cash and cash equivalents Other financial assets Other assets

2,150,625.77

1,305,256.69

79,122,179.87

86,707,542.68

130,483,043.17

138,281,850.13

➜

❘

Consolidated Interim Financial Statements

Shareholders‘ Equity and Liabilities €

31/03/2012

31/12/2011

26,325,946.00

42,147,782.15

12,743,349.97

Shareholders‘ equity Equity attributable to equity holders of the parent Share capital – C onditional Capital €7,500,000.00 (previous year: €7,500,000.00 ) 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

770,868.79

728,294.52

-356,157.46

-615,885.24

-5,087,814.06

-5,713,702.92

76,543,975.39

75,615,784.48

0.00

76,543,975.39

75,615,784.48

Liabilities Non-current liabilities Provisions for pensions Other provisions Other liabilities Deferred tax liabilities

781,718.38

769,718.38

7,227,434.68

7,235,803.15

0.00

414,869.09

585,985.06

8,424,022.15

8,591,506.59

17,523,304.35

17,067,647.30

1,715,542.12

1,333,795.95

91,662.61

0.00

17,910,940.58

28,632,433.78

532,641.53

588,991.71

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

7,740,954.44

6,451,690.32

45,515,045.63

54,074,559.06

130,483,043.17

138,281,850.13

Q1–2012

Consolidated Statement of Changes in Equity as at 31 March 2012 GFT Technologies Aktiengesellschaft, Stuttgart

€

Subscribed

Capital

Retained

capital

reserve

earnings Other retained earnings

As at 01/01/2011

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

Dividend payment June 2011

Total income and expenses for the financial year 01/01/–31/12/2011

Allocations to retained earnings 2011 – to other retained earnings

As at 31/12/2011

2,500,000.00

26,325,946.00

42,147,782.15

12,743,349.97

26,325,946.00

42,147,782.15

12,743,349.97

Total income and expenses for the period 01/01/–31/03/2012

As at 31/03/2012

â&#x17E;&#x153;

â?&#x2DC;

Consolidated Interim Financial Statements

Changes in equity not affecting

Consolidated

Equity

Non-controlling

Total

results

balance sheet

attributable to

equity holders

share capital

loss

equity holders

Foreign

Market

currency

assessment

translations

for securities

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

-3,948,891.90

0.00

-3,948,891.90

8,289,601.11

8,294,499.38

0.00

8,294,499.38

-2,500,000.00

0.00

192,983.51

-188,085.24

of the parent

728,294.52

-615,885.24

-5,713,702.92

75,615,784.48

0.00

75,615,784.48

42,574.27

259,727.78

625,888.86

928,190.91

0.00

928,190.91

770,868.79

-356,157.46

-5,087,814.06

76,543,975.39

0.00

76,543,975.39

Q1–2012

Consolidated Cash Flow Statement for the period from 1 January to 31 March 2012 GFT Technologies Aktiengesellschaft, Stuttgart

First quarter

€

01/01/– 31/03/2012

01/01/– 31/03/2011

Net income

625,888.86

1,353,005.47

Depreciation on non-current intangible and tangible assets

370,535.90

313,422.50

Changes in provisions

459,288.58

1,473,912.70

-155,941.89

-7,510.54

689.00

0.00

-4,325,484.14

-3,375,710.03

-169,210.16

134,981.91

-9,296,711.28

-2,195,934.75

42,574.27

-131,475.01

-12,448,370.86

-2,435,307.75

-233,508.04

-342,089.82

Other non-cash expenses/income Profit from the disposal of long-term tangible and intangible assets as well as financial assets Changes in trade receivables Changes in other assets Changes in trade liabilities and other liabilities Other changes in equity Cash flow from operating activities

Cash payments to acquire tangible assets Cash payments to acquire non-current intangible assets

-37,743.21

-89,986.49

Cash flow from investing activities

-271,251.25

-432,076.31

Cash receipts from taking out short-term or long-term loans

91,662.61

633,419.99

Cash flow from financing activities

91,662.61

633,419.99

-12,627,959.50

-2,233,964.07

Cash funds at the beginning of the period

32,472,593.37

26,232,995.13

Cash funds at the end of the period

19,844,633.87

23,999,031.06

Change in cash funds from cash-relevant transactions

➜

❘

Notes

Notes to the Interim Financial Statements as at 31 March 2012 GFT Technologies Aktiengesellschaft, Stuttgart

Fundamentals for the GFT Group’s Interim Financial Statements

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

The Consolidated Interim Financial Statements of GFT Technologies

been changed slightly compared to the Interim Financial Statements

Aktiengesellschaft (»GFT AG«) should be read in conjunction with

of the previous year; the prior-year figures have been adjusted to the

the Annual Financial Statements of GFT AG as of the end of the last

amended reporting format. New or amended standards and interpreta-

financial year (31 December 2011). They were drawn up in euro (€) in

tions to be applied as of the beginning of the financial year 2012 did

accordance with standard principles of accounting and valuation and

not have any major effect on the Interim Financial Statements.

conform to the prescriptions set out in IAS 34, sections 37w and 37y of the German Securities Trading Act (WpHG) and the regulations for the Frankfurt Stock Exchange.

The Interim Financial Statements and the Interim Management Report as of 31 March 2012 have neither been audited according to section 317 HGB, nor been reviewed.

The Interim Financial Statements have been prepared according to the International Financial Reporting Standards (IFRS) issued by the Inter national Accounting Standards Board (IASB) effective on the balance sheet date, which are to be applied within the EU. The same accounting and valuation methods were used in these Interim Financial Statements as in the last Consolidated Financial Statements as at 31 December 2011. The reporting format of these Interim Financial Statements has

In drawing up these Interim Financial Statements, the Executive Board made estimations concerning the application and interpretation of accounting regulations. Actual events may differ from these estimations. Future developments and results depend on a number of external factors involving risks and uncertainties, and are based on current assumptions which may prove inaccurate.

Changes to the consolidated group and its associated companies

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

There have been no changes to the scope of consolidation since the Consolidated Financial Statements were closed on 31 December 2011.

Changes in equity

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

For the changes in equity capital between 1 January 2012 and 31 March

There were no changes in Authorized Capital or Conditional Capital in

2012, we refer to the Consolidated Statement of Changes in Equity

the period 1 January 2012 to 31 March 2012 compared to 31 December

which is disclosed separately.

2011. As of 31 March 2012, GFT AG did not hold any of its own shares,

As of 31 March 2012, the company’s share capital of €26,325,946.00 consists of 26,325,946 non-par value individual share certificates (no change relative to 31 December 2011). These shares are bearer shares and all grant equal rights. In June 2011, a dividend of €0.15 per share was distributed to shareholders, totalling €3,949 thousand, from the balance sheet profit of the parent company GFT AG. No dividends have yet been paid in financial year 2012. At the Annual General Meeting to be held in May 2012, a proposal will be made to pay a dividend of €0.15 per share, totalling €3,949 thousand, from the balance sheet profit of GFT AG as of 31 December 2011.

nor did it purchase or sell any of its own shares in the period 1 January 2012 to 31 March 2012.

Q1–2012

Segment reporting

GFT has identified the two segments Services and Resourcing as report-

tax). Segment income and results also include transactions between the

able segments. The identification of these segments was mainly based

segments. Intersegment transactions take place at market prices on an

on the fact that the products and services offered in these segments

arm’s length principle.

show differences, and that the GFT Group is organised, managed 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 products and services with which the reportable segments generate their income can be characterised as follows: all activities in connection with IT solutions (services and projects) are aggregated in the Services segment. The Resourcing segment focuses on the placement of freelance IT specialists. Internal controlling and reporting within the GFT Group, and thus also segment reporting, is based on IFRS accounting principles as applied

As a general rule, the assets of the segments include all assets, except for those from income tax and assets attributed to the holding activity. The segment liabilities include all liabilities, except for those from income tax, financing, and liabilities in connection with the holding activity. For detailed information about the business segments, please refer to the Appendix attached to the Notes to the Consolidated Financial Statements. It also includes disclosures concerning revenue from external 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:

in the Consolidated Financial Statements. The GFT Group measures the success of its segments by means of segment EBT (earnings before

€ thsd.

Total segment revenue Occasionally occurring revenue

01/01/– 31/03/2012

01/01/– 31/03/2011

58,774

68,908

Elimination of intersegment revenue

-1,127

-1,605

Group revenue

57,650

67,303

Total segment results (EBT) Non-attributed expenses/income of Group HQ Non-attributed income for elimination of interim results Other Group result before taxes

€ thsd.

Total segment assets Non-attributed assets of Group HQ

2,488

2,091

-2,183

-96

888

77 1,270

2,020

31/03/2012

31/03/2011

116,224

109,551

115

Securities

7,679

14,271

Assets from income taxes

5,488

5,949

Other Group assets

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

977 130,483

129,864

50,452

54,834

378

482

2,130

1,903

979 53,939

57,219

➜

❘

Notes

The reconciliation discloses items which per definition are not components of the segments. Non-attributed items of Group HQ, e.g. from centrally managed issues. Business transactions between the segments are also eliminated in the reconciliation. 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/– 31/03/2012

01/01/– 31/03/2011

31/03/2012

31/03/2011

21.43

36.72

39.31

21.95

9.30

9.91

0.10

0.14

Spain

6.65

6.51

1.16

1.02

France

9.75

6.88

0.11

0.05

USA

2.60

1.61

4.98

0.00

Switzerland

3.45

2.17

0.39

0.13

€ million

Germany

Other countries Total

4.47

3.50

0.28

0.31

57.65

67.30

46.33

23.60

Determined by client location

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/– 31/03/2012

01/01/– 31/03/2011

01/01/– 31/03/2012

01/01/– 31/03/2011

Client 1

17.97

32.32

Services, Resourcing

Q1–2012

Notes – information on business segments – Segment report GFT Technologies Aktiengesellschaft, Stuttgart

Services

€ thsd.

External sales Inter-segment sales Total revenues

Scheduled depreciation Significant non-cash income/expenditure other than depreciation Interest income Interest expenses Share of net profits of associated companies reported according to the equity method

Segment result (EBT)

Segment assets Shares in associated companies reported according to the equity method Investments in non-current intangible and tangible assets

Segment liabilities

Resourcing

31/03/2012

31/03/2011

31/03/2012

31/03/2011

30,490

28,892

27,157

38,411

1,127

1,605

30,490

28,892

28,284

40,016

-292

-255

-63

-49

-24

-40

-7

-5

-22

-3

1,809

1,439

679

652

80,266

60,822

35,958

48,729

240

366

25,924

22,671

24,528

32,163

➜

Total

Eliminations

31/03/2012

31/03/2011

31/03/2012

57,647

67,303

❘

Notes

Consolidated

31/03/2011

31/03/2012

31/03/2011

57,650

67,303

1,127

1,605

-1,127

-1,605

58,774

68,908

-1,124

-1,605

57,650

67,303

-355

-304

-16

-9

-371

-313

-24

151

156

107

136

131

159

-45

-29

-3

-2

-3

2,488

2,091

-1,218

-71

1,270

2,020

116,224

109,551

14,259

20,313

130,483

129,864

263

419

271

432

50,452

54,834

3,487

2,385

53,939

57,219

Q1–2012

Changes to contingent liabilities

As of 31 March 2012, there were no significant changes to contingencies and other financial commitments compared to the Consolidated Financial Statements as at 31 December 2011. As at 31 December 2011, there were no contingent receivables.

Investments/disinvestments

During the period 1 January to 31 March 2012, the GFT Group invested €60 thousand in intangible assets (1 January to 31 March 2011: €90 thousand) and €211 thousand in tangible assets (1 January to 31 March 2011: €342 thousand). There were no significant disinvestments in the reporting period.

Related party disclosures

Compared to the disclosures made in the Notes to the Consolidated Financial Statements as at 31 December 2011, there were no significant transactions. There were also no changes in the composition of related parties nor in relations with such parties.

Stuttgart, 7 May 2012 GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz

Jean-François Bodin

Marika Lulay

Dr. Jochen Ruetz

Executive Board (Chairman)

Executive Board

Q1â&#x20AC;&#x201C;2012

Financial Calendar

Further information

Annual General Meeting

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

22 May 2012

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

Interim Report as of 30 June 2012

company and the GFT share.

9 August 2012

Interim Report as of 30 September 2012

GFT Technologies AG

8 November 2012

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 2012: GFT Technologies AG, Stuttgart