GFT Half-Yearly Financial Report 2012 by GFT Technologies SE

Half-Yearly financial report as of 30 JunE 2012

Q1–2–2012

Key figures according to IFRS (not certified) Half-year

01/01/– 30/06/2012

01/01/– 30/06/2011

Change

Income Statement Revenue

€m

116.38

141.80

-17.9%

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

€m

4.43

5.76

-23.1%

Earnings before interest and taxes (EBIT)

€m

3.67

5.13

-28.5%

Earnings before taxes (EBT)

€m

3.78

5.52

-31.5%

Net income

€m

2.36

3.63

-35.0%

Other non-current assets

€m

45.41

35.59

27.6%

Cash, cash equivalents and securities

€m

30.40

18.09

68.0%

Other current assets

€m

54.40

81.41

-33.2%

ASSETS

€m

130.21

135.09

-3.6%

Non-current liabilities

€m

6.84

2.28

200.0%

Balance sheet

Current liabilities

€m

48.90

61.64

-20.7%

Shareholders´ equity

€m

74.47

71.17

4.6%

SHAREHOLDERS' EQUITY AND LIABILITIES

€m

130.21

135.09

-3.6%

Equity ratio

57%

53%

4 %-points

Cash flow from operating activities

€m

-5.32

-11.61

-54.2%

Cash flow from investing activities

€m

-0.80

-0.84

-4.8%

Cash flow from financing activities

€m

-3.48

-3.54

-1.7%

1,371

1,317

4.1%

0.09

0.14

-35.0%

Cash flow

Employees Number of permanent employees (as of 30 June)

Share Earnings per share

€

(Rounding differences in the Consolidated Interim Management Report due to presentation in € million possible.)

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Highlights

The GFT Group can look back on a solid performance and ended its first half-year 2012 with revenue growth in its core operating business. For the current financial year, the GFT Group expects stronger growth in the second half-year. The Executive Board has confirmed its annual forecast for revenue of €250 million and for pre-tax earnings of €12 million.

Revenue

€ million

Earnings before taxes

2011

64.51

66.07

74.50

2012

2011

€ million

2.00

2012

3.53

58.73

3.50

2.51

67.30

57.65

2.02

1.27

272.38

116.38

11.05

3.78

Contents Consolidated Interim Management Report Notes to the Interim Financial Statements

… …

2 23

Consolidated Interim Financial Statements

…

Q1–2–2012

Consolidated Interim Management Report of GFT Technologies AG as of 30 June 2012 (not certified)

Business environment Economic environment Macroeconomic development

There are considerable differences in the sector’s regional development, however. Whereas business is largely stagnant in Western Europe or even shrinking in certain areas,

The Euro zone debt crisis continues to cast its shadow on

demand is booming in the emerging nations. The latter

the global economy. According to the International Mon-

already account for 27% of total global demand for ICT

etary Fund (IMF), the global upturn – already no more than

products. Germany takes a special place within the Euro-

moderate – has grown even more feeble over the past

pean ICT sector: with growth of 1.6%, the German market

three months. In their World Economic Outlook of July

provides a certain degree of stability.

2012, the economists downgraded their global growth forecast accordingly to 3.5%.

There were positive figures published in June by the Ger-

Certain factors may continue to exert a negative influence

communications and New Media (BITKOM). The number

on the global economic situation. These include the grow-

of people employed in the ICT sector, for example, grew by

ing political and economic uncertainty in Greece and the

18,000 last year and 54% of companies are looking to hire

banking problems of Spain. To what extent the Euro zone

new staff in 2012. Unchanged from its spring forecast, the

partners are prepared to help the crisis-hit nations in future

sector association still expects ICT revenues to reach €73.2

remains open, as does the question of whether suitable

billion in the current year – an increase of 4.5% over the

measures can be introduced to improve the situation.

previous year.

The budget debate in the USA also presents a danger for the global economy. The IMF hopes that an abrupt fiscal blockade can be avoided and a medium-term consolida-

man Federal Association for Information Technology, Tele

BITKOM’s business confidence index also indicates further stable growth in the second quarter of 2012: 69% of IT

tion strategy drafted.

and telecommunication providers surveyed stated that they

The IMF has confirmed its April forecast for the Euro zone.

year.

anticipated rising sales compared to the same period last

The experts continue to predict a mild recession of 0.3% in 2012. The economic prospects are particularly gloomy in crisis-hit countries, such as Greece, Italy, Spain and Portugal. At the same time, however, the IMF has upgraded its outlook for Germany. For the current year, the economists expect growth of 1.0% – some 0.4 %-points more than forecast in April. Sector development Despite the European finance and banking crisis, the global market for Information and Communication Technology (ICT) continues to display stable growth. This was the conclusion of the »ICT Market Report 2012/13« published by the European Information Technology Observatory (EITO). It also stated that global ICT revenues were growing by 5.1%.

Course of business in the first six months The GFT Group can look back on a solid performance in the first six months of 2012. Despite noticeable signs of ongoing caution in certain areas of the financial sector, GFT enjoyed revenue growth of 5% in its Services segment and the core business of its Resourcing segment. As expected, pre-tax operating profits (EBT) in these segments were down 11% year on year in the period under review. The reason was a fall in new orders in the second half of 2011, which in turn impacted earnings in the first half of 2012. Whereas the first half of 2011 was marked by healthy demand and the second half by budget cuts, new orders rose steadily in the first six months of 2012. These will lead to increased revenue and earnings in the remaining course of the year.

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Consolidated Interim Management Report

As a result of the planned withdrawal from the lower-mar-

to the first quarter of 2012 and ongoing efforts to raise

gin Third Party Management business of the Resourcing

efficiency, a lower utilisation of capacities in comparison to

segment in late 2011, total revenue in the period under

the same period last year had a dampening effect on seg-

review displays a year-on-year decline of 18%. A total of

ment earnings. In the period under review, the total EBT

€116.38 million was generated (prev. year: €141.80 mil-

result of the GFT Group was also burdened by scheduled

lion). Of this amount, the first quarter of 2012 accounted

expenditure for the innovation initiative »CODE_n12«;

for €57.65 million and the second quarter for €58.73 mil-

costs for this drive were mostly expensed in the first

lion. Pre-tax earnings (EBT) for the first six months of the

quarter.

year totalled €3.78 million (prev. year: €5.52 million). This decline of 32% in direct comparison with the previous year is mainly due to non-recurring expenses of €1.32 million for the international innovation initiative »CODE_n12«. This burden was borne by the first quarter in which EBT amounted to €1.27 million. In the second quarter, the GFT

In its current financial year, the GFT Group expects to achieve stronger growth in the second half of the year. This is due to stronger capital spending in the finance sector, which already led to more orders in the first half of the current fiscal year. Growing demand from customers

Group posted an EBT result of €2.51 million.

in corporate and investment banking and the rising need

In the first six months, the Services division contributed

will have a particularly positive impact on revenue in the

€60.85 million to total revenue (prev. year: €58.26 million).

Services segment. In the Resourcing division, it is expected

As a consequence, segment revenue grew by 4% year on

that the strong demand for IT specialists across all sectors

year. In addition to acquisitions in Switzerland and the USA

will continue to generate above-average growth in Re-

made in 2011 and included for the first time in the first

source Management. Against this backdrop, the Executive

half-year, the main contributing factors were stable sales of

Board of GFT can confirm the forecast it made in the Con-

outsourcing services and a slight increase in demand from

solidated Financial Statements 2011: it continues to expect

customers in the UK and US corporate and investment

total revenue of €250 million and earnings before taxes of

banking sectors.

€12 million for the year as a whole.

for IT solutions to comply with regulatory requirements

The Resourcing division benefited from strong demand for freelance IT specialists in the industrial sector and generated segment revenue of €55.53 million. This represented a 34% fall on the prior-year figure of €83.54 million due

GFT share

to the loss of revenue from Third Party Management activ ities. Despite the positive development of the Resource

Following a strong start to the year and an upward trend

Management business, which displayed strong growth

in the first quarter of 2012, the global stock markets

especially in France, this decline in revenue could not be

began a phase of consolidation towards the end of March.

offset. A year-on-year comparison of revenue without

Negative reports, especially in connection with the debt

Third Party Management reveals growth in segment rev-

problems of South European countries, caused stock prices

enue of 5%.

to tumble in April. In the course of May and June, the

At €1.15 million (prev. year: €1.65 million), segment earnings in the Resourcing division fell short of expectations. The segment result in the Services division amounted to €4.25 million in the period under review and was thus slightly down on the prior-year figure of €4.56 million. Despite slightly better utilisation of capacities compared

negative signals began to intensify and market sentiment deteriorated further. The main reasons were the unsettled question of a possible Greek exit from the Euro zone, fears about the Spanish banking sector, weaker growth in the USA and China, as well as disappointing economic data in the Euro zone. On the other hand, there were encourag-

Q1–2–2012

ing reports from German companies, whose figures for

Following the publication of the interim report as of

the first quarter were generally positive. The prevailing

31 March 2012, the analysts of equinet Bank AG and

mood on the stock markets was dominated by the ten-

LBBW upheld their »buy« recommendation for the GFT

sion between these positive company reports and a tense

share with an upside target of €4.40 and €4.00, respec

economic environment; trading was nervous and cautious,

tively. The analysts of Hauck & Aufhäuser and Warburg

while many investors focused on risk avoidance.

Research also maintained their »buy« recommendation

After growing by 14% in the first quarter, the blue-chip DAX index lost much of the ground it had gained since the beginning of the year during the second quarter. After suffering a slide in share prices over several weeks, the index

with an unchanged upside target €4.70 and €5.00, re spectively. Following the publication of interim figures for financial year 2011 on 1 March 2012, Hauck & Aufhäuser had raised their upside target from €4.20 to €4.70.

moved sideways towards the end of the first half of 2012

The Annual General Meeting of GFT Technologies AG was

while remaining above the 6,000-point mark. The DAX

held on 22 May 2012 at the company’s headquarters in

closed at 6,416 points on 30 June 2012 and was thus up

Stuttgart. Attended by 59.89% of voting capital, all items

9% on its year-opening value of 5,898 points.

on the agenda were adopted with large majorities. The

The tech-stock index TecDAX, which grew by 15% in the first quarter, suffered losses in the second quarter which cancelled out many of the gains made in the first three months. In the second quarter, the index lost almost 6 %-points and closed at 744 points on 30 June 2012 – an increase of 9%.

dividend of €0.15 per share proposed by the Executive Board and Supervisory Board was distributed in accordance with the resolution adopted by the Annual General Meeting of 22 May 2012.

Shareholder structure There were no significant changes in the shareholder

The performance of the GFT share in the first half of 2012

structure in the first six months of 2012. Company founder

was affected by the general volatility of the market. Fol-

Ulrich Dietz continues to hold 28.08% of shares. Maria

lowing a strong start to the year, the share made encour-

Dietz owns 9.68% of shares. Dr Markus Kerber, a former

aging progress in the first quarter, finishing 13% up on the

member of GFT’s Supervisory Board, holds 5.00% of

beginning of the year. Performance in the second quarter

shares. The free float portion amounts to 57.24%.

was much more uneven with lower trading volumes. After closing at €3.12 in April, the share remained susceptible to fluctuation throughout May and closed the month at €3.01. On publication of figures for the first quarter of 2012 on 10 May, the share price rose to €3.10. In June,

Shareholder structure

the GFT share was once again confronted by growing volatility and pressure to sell. It ended the first half-year at €2.90, representing growth of 5% over its year-opening price of €2.75.

Ulrich Dietz

28.08%

Maria Dietz

9.68%

Dr Markus Kerber

5.00%

Free float

57.24%

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Consolidated Interim Management Report

Share performance in the first six months of 2012 indexed 120 115

GFT share

110

T echnology All Share Performance Index

105 100

2 January 2012 €2.75 = 100%

30 June 2012 €2.90

Information on the GFT share Q1–Q2 2012

Q1–Q2 2011

Year-opening quotation (XETRA)*

€2.75

€4.33

Closing quotation on 30 June (XETRA)*

€2.90

€3.96

Percentage change since year-opening

+5%

-9%

Highest price (XETRA)*

€3.20 (02/03/2012, 13/03/2012, 14/03/2012, 15/03/2012, 16/03/2012, 20/03/2012, 21/03/2012)

€4.86 (18/01/2011)

Lowest price (XETRA)*

€2.75 (02.01.2012)

€3.59 (13.06.2011)

€76.35 million

€104.25 million

Market capitalisation as of 30 June Earnings per share Average daily trading volume in shares (XETRA and Frankfurt)*

€0.09

€0.14

12,954

38,516

* 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

Q1–2–2012

Development of revenue In the first half of 2012, the GFT Group generated revenue

All in all, the Resourcing division succeeded in continuing

of €116.38 million and thus 18% less than in the same

its positive development of 2011. However, the planned

period last year (€141.80 million). This decline in revenue

decline in revenue due to the termination of cooperation

resulted from the complete reduction in business with a

with a major client could not be fully offset. As a conse-

major Resourcing client from the finance sector at year-end

quence, segment revenue in the period under review fell

2011. At €55.53 million, there was a corresponding year-

by 34% to €55.53 million (prev. year: €83.54 million). This

on-year fall in total revenue of the Resourcing segment in

decline only affected the low-margin Third Party Manage-

the first half-year (prev. year: €83.54 million). The Services

ment business, which generated revenue of €10.94 million

division achieved revenue growth of 4% to €60.85 million

(prev. year: €41.14 million). Revenue of the higher-margin

(prev. year: €58.26 million).

Resource Management business, however, grew by 5%. The scheduled increase to €44.60 million (prev. year:

Revenue by segment

€42.40 million) resulted from growing business with cus-

The decline in revenue of the Resourcing division led to a

tomers in the telecommunications sector, as well as strong

shift in the breakdown of revenue by segment in favour of

demand across all sectors for freelance IT and engineering

the Services division. The latter accounted for 52% of total

specialists.

revenue in the first half of 2012, compared to just 41% in

In the first two quarters of 2012, the Services division

the same period last year. In the first six months of 2012, the Resourcing segment therefore generated 48% of total Group revenue (prev. year: 59%). Of this total, the reduced Third Party Management business accounted for 9% (prev. year: 29%) and the Resource Management business for 38% (prev. year: 30%).

achieved year-on-year revenue growth of 4% to €60.85 million (prev. year: €58.26 million). This growth was mainly due to acquisitions in Switzerland and the USA made in the previous year which had a noticeable impact on revenue in 2012. The Services segment also benefited from stable demand in the finance sector for core banking solutions, outsourcing services and IT solutions to implement regulatory requirements.

Revenue by segment

Revenue by country

Q1–2 2012

€ million

Resourcing

48%

55.53

Services

52%

60.85

Q1–2 2012

€ million

Germany

38%

44.72

France

17%

19.92

16%

18.11

Spain

12%

13.95

Switzerland

6.19

USA

5.96

Other countries

7.53

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Consolidated Interim Management Report

Revenue by country

In the first half of 2012, Switzerland contributed revenue

Within the GFT Group, Germany remains the largest sales

of €6.19 million. It thus exceeded the prior-year figure

market. In the first half of 2012, revenue in this country amounted to €44.72 million (prev. year: €79.50 million). As revenue in other countries continued to grow, Ger many’s share of total Group revenue fell to 38% (prev.

(€4.85 million) by 28%. This development was largely due to the acquisition of Asymo AG. Moreover, the Services division in particular proved stable in Switzerland. The country’s share of total revenue increased by 2 %-points

year: 56%). The fall in revenue of 44% compared to the

to 5%.

same period of 2011 was due to declining Third Party

The significant increase in revenue of 72% in the USA was

Management revenue. Consistently high demand for freelance IT and engineering experts had a positive impact on the Resource Management business, while long-term projects with customers in the finance sector helped boost revenue in the Services segment. In the first half of 2012, France established itself for the first time as the GFT Group’s second largest sales market. Revenue grew by 29% to €19.92 million (prev. year: €15.49 million). This increase in revenue was achieved in the Resourcing segment and above all with clients in industrial sectors. Existing projects were expanded and new clients added. Compared to the previous year, there was a growing shift in revenue towards the higher-margin Resource Management business. Business in the UK developed more positively than originally assumed at the beginning of the year. Despite a volatile market environment in the finance sector, the high revenue level of the previous year (€19.23 million) was almost maintained. In the first six months of 2012, revenue reached €18.11 million. As a result, the UK accounted for 16% of the GFT Group’s total revenue in the period under review (prev. year: 14%). Spain also raised its share of total revenue in the first six months – despite the ongoing difficulties of the banking sector targeted in particular by GFT. In the period under review, revenue of €13.95 million (prev. year: €13.16 million) was generated with clients in Spain, accounting for 12% of total revenue (prev. year: 9%). Stable long-term projects and consistently strong demand from financial institutes for outsourcing services played a major role in this development.

mainly due to the initial inclusion of the acquired consultancy division of G2 Systems. Organic growth in corporate and investment banking also had a positive impact. In total, revenue amounted to €5.96 million in the period under review (prev. year: €3.46 million). As a result, the USA increased its share of total revenue to 5% (prev. year: 2%). »Other countries«, which include Brazil, Italy and the Benelux states, contributed revenue of €7.53 million in the first half of 2012. This is 23% more than in the same period of 2011 (€6.11 million). As a result, 7% of total revenue was generated by other countries, in which mainly project business in the Services segment was expanded.

Q1–2–2012

Earnings position Revenue by industry

At €3.78 million, earnings before taxes (EBT) of the GFT

The financial services industry remains the GFT Group’s

Group in the first six months of 2012 fell short of the prior-

most important sector. Although its share of total revenue was slightly down in the first half of 2012 at 61% (prev. year: 67%), this decline is due to the planned withdrawal from low-margin Third Party Management business with a major client. In the first six months of 2012, the GFT Group generated revenue of €70.96 million (prev. year: €94.80 million) with projects for banks and insurance companies. The GFT Group’s revenue from customers in the postal and logistics industry fell by 54% to €4.60 million in the first half of 2012 (prev. year: €10.09 million). This sector accounted for 4% of total revenue (prev. year: 7%).

year figure of €5.52 million. The operating margin before taxes fell by 0.6 %-points, from 3.9% last year to 3.3% in the period under review. All in all, EBT in the first half of 2012 was above expectations as costs included expenses of €1.32 million for the »CODE_n12« project and CeBIT fair presence. An assessment of the two operating divisions reveals that both segments fell short of their prior-year results. The Resourcing segment in particular posted earnings well below the previous year’s result. In the period under review, earnings before interest and

The remaining 35% of total revenue (prev. year: 26%) was generated with clients in the »Others« category. In the first two quarters of the year, the GFT Group received revenue of €40.82 million in this field (prev. year: €36.91 million). In the telecommunications and industrial sectors, GFT benefited from consistently strong demand for freelance IT experts and engineers.

taxes (EBIT) amounted to €3.67 million and were thus €1.46 million down on the previous year (€5.13 million). As a consequence, earnings before interest, taxes and depreciation/amortisation (EBITDA) on property, plant and equipment and intangible assets were also down on the previous year at €4.43 million (prev. year: €5.76 million). Net income of the GFT Group for the first six months amounted to €2.36 million. Earnings after taxes were thus down by €1.27 million (prev. year: €3.63 million). The calculated tax ratio rose from 34% in the previous year to 38%. Earnings per share fell by €0.05 in the period under

Revenue by industry

review to €0.09 per share (prev. year: €0.14 per share). These figures are based on an average of 26,325,946 outstanding shares.

Financial service providers Post/logistics Others

Q1–2 2012

€ million

61%

70.96

4.60

35%

40.82

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Consolidated Interim Management Report

Earnings position by segment

Services € million

Resourcing

Total

Others

Q1–2/11

Q1–2/12

Q1–2/11

Q1–2/12

Q1–2/11

Q1–2/12

Q1–2/11

Q1–2/12

4.56

4.25

1.65

1.15

-0.69

-1.62

5.52

3.78

Earnings position by segment

The »Others« category comprises balance sheet effects,

In the first half of 2012, the Services segment contributed

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

€4.25 million to earnings (prev. year: €4.56 million), representing a year-on-year decline of 7%; its operating margin fell by 0.8 %-points to 7.0%. The segment result amounted to €2.44 million in the second quarter of 2012 (prev. year: €3.12 million). The reason for this decline is the ongoing volatile market environment and reduced utilisation of staff in this segment compared to the previous year. Earnings in the Resourcing segment amounted to €1.15 million as of 30 June 2012 and were thus down on the previous year (€1.65 million) as a result of the current adverse market conditions. The stable development of the German and French markets was offset by much weaker results in the UK and Switzerland. The operating margin improved by 0.1 %-points to 2.1% (prev. year: 2.0%). Despite a significant reduction in revenue of €30.20 million, earnings from Third Party Management activities were only slightly down on the previous year. Third Party Management accounted for €0.04 million of earnings (prev. year: €0.22 million). In the Resource Management business, earnings fell as a result of lower margins to €1.11 million (prev. year: €1.43 million).

consolidation amounts which cannot be directly charged to either of the two aforementioned divisions. Due in particular to non-recurring expenses in connection with the »CODE_n12« project and CeBIT fair presence, pre-tax earnings were well below the prior-year figure at €-1.62 million (prev. year: €-0.69 million).

Earnings position by income and expense items As of 30 June 2012, other operating income amounted to €1.46 million and was thus only slightly above the prioryear figure (€1.38 million). The increase in other operating income was mainly due to other income of €0.87 million. The remaining changes resulted from the write-up of short-term securities, currency gains and benefits in kind. As of 30 June 2012, the cost of materials – mainly comprising the purchase of external manpower – amounted to €54.99 million and was thus well below the prior-year figure of €84.48 million. This decline resulted from a significant reduction in Third Party Management revenue and the respective purchase of external manpower. As a proportion of revenue, the cost of materials consequently fell by 13 %-points year on year to 47% (prev. year: 60%).

Q1–2–2012

Financial position Personnel expenses rose by €4.46 million to €46.42

As of the end of the first half-year, cash, cash equivalents

million (prev. year: €41.96 million). This 11% increase in

and securities amounted to €30.40 million and were

personnel expenses was mainly due to the rise in head-

therefore €9.28 million below the corresponding figure at

count following acquisitions and salary increases granted

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

in 2012. As a proportion of revenue, personnel expenses

due to a fall in liquid funds, particularly as a result of the

were up strongly by around 10 %-points to 40% (prev.

usual increase in working capital during the year by €9.49

year: 30%) due to the increased revenue share of the

million to €22.98 million.

Services segment of 52% in the first half of 2012 (prev. year: 41%).

Compared to the year-end figure (€50.96 million), trade receivables rose only slightly by €0.72 million to €51.68

Depreciation of intangible and tangible assets

million. As of 30 June 2012, trade payables amounted

amounted to €0.76 million as of 30 June 2012 and was

to just €19.15 million and were thus well below the cor-

thus €0.13 million above the prior-year figure (€0.63 mil-

responding figure on 31 December 2011 (€28.63 million).

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

This reduction resulted mainly from the significant decrease

operating profits.

in Third Party Management revenue and the related pur-

Other operating expenses increased to €12.00 million

chase of external staff.

in the first six months of the financial year, corresponding

Compared to the same period last year, cash flows

to a year-on-year increase of 10% (prev. year: €10.87 mil-

from operating activities improved considerably and

lion). The cost increases were mainly attributable to higher

amounted to €-5.32 million as of 30 June 2012 (prev. year:

operating, administrative and selling expenses, which rose

€-11.61 million). This is mainly due to improved claims

by €1.43 million to €11.36 million in 2012 (prev. year:

management and the payment of arrears by a major client

€9.93 million) due to increased business activities and costs

in the second quarter of 2012.

attributable to the »CODE_n12« project. This item also includes other expenses which are not out-of-period, other taxes and exchange rate losses. As of 30 June 2012, income taxes amounted to €1.42 million and were thus €0.47 million below the prior-year figure (€1.89 million). The calculated tax ratio increased to 38% in the period under review (prev. year: 34%).

At €-0.80 million, cash flows from investing activities were virtually unchanged from the previous year (€-0.84 million); compared to last year, there was a slight increase in capital expenditure, including IT procurements. As of 30 June 2012, cash flows from financing activities amounted to €-3.48 million and were therefore almost unchanged from the previous year (€-3.54 million). The main items were the dividend payment to shareholders of €-3.95 million and the use of short-term credit lines by a foreign subsidiary.

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Consolidated Interim Management Report

Asset position As of 30 June 2012, the balance sheet total of the GFT

On the liabilities side the most notable changes were

Group was down €8.07 million at €130.21 million. At

among the current liabilities; equity was slightly down on

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

the year-end figure. As of 30 June 2012, equity amounted

million.

to €74.47 million and was thus €1.15 million below the

On the asset side there was a significant change in current assets and in particular the items cash and cash equivalents, and to a lesser extent trade receivables. Non-current

corresponding figure on the balance sheet date of 31 December 2011. The equity ratio rose to 57%, compared to 55% on 31 December 2011.

assets, however, were largely unchanged. Compared to

In terms of debt, there was a significant decrease in

31 December 2011, they rose by €0.07 million to €51.64

non-current liabilities of €1.74 million due mainly to the

million, mainly as a result of an increase in deferred tax

reversal of other provisions of €1.41 million. As of the bal-

claims.

ance sheet date, non-current liabilities amounted to €6.84

As of 30 June 2012, current assets were well below their

million compared to €8.59 million at year-end 2011.

year-end level (€86.71 million), falling to €78.57 million.

There was an even stronger decline in current liabilities

Within this item, liquid funds decreased strongly by €9.49

during the period under review, which fell by €5.17 million

million to €22.98 million, while trade receivables increased

from €54.07 million to €48.90 million. Within this item,

by €0.72 million to €51.68 million.

there was a strong reduction in trade payables to €19.15 million compared with €28.63 million as of 31 December 2011. In contrast, other provisions rose to €19.37 million (31 December 2011: €17.07 million) and other liabilities slightly to €7.54 million (31 December 2011: €6.45 million).

Group balance sheet structure

ASSETS € million

31/12/2011

30/06/2012

31/12/2011

LIABILITIES € million

Cash, cash equivalents and securities

39.68

30.40

48.90

54.07

Current liabilities

Other current assets

53.25

54.40

6.84

8.59

Non-current liabilities

Other non-current assets

45.35

45.41

74.47

75.62

Equity capital

138.28

130.21

138.28

Q1–2–2012

Although the equity/non-current assets ratio – the yard-

In the »Others« category, there was an increase of six em-

stick for solid balance sheet structures – fell slightly to

ployees. The holding company thus employed 46 people

144% as of 30 June 2012 (31 December 2011: 147%),

on the reporting date.

it is still at a very healthy level. This ratio expresses the relationship between the balance sheet items »equity« and »non-current assets« and thus provides information about

Employees by division as of 30 June

the company’s financial stability. Services

Employees

Resourcing

2012

2011

1,220

1,178

105

1,371

1,317

Others Total

The GFT Group employed a total of 1,371 people at the end of the first half of 2012. Compared to the same date

The number of people employed in Germany as of 30

last year, this represents an increase of 54 persons or 4%.

June 2012 amounted to 271. This was 3% or 9 persons

The number of employees is calculated on the basis of full-

below the prior-year figure. Staff employed outside

time staff, whereby part-time staff are included on a pro

Germany rose by 63 to a total of 1,100 employees (prev.

rata basis. There was also an increase in headcount in com-

year: 1,037). As a result, the proportion of total GFT staff

parison to the two preceding quarters: on 31 December

employed outside Germany now amounts to 80% (prev.

2011, GFT had 1,337 employees and on 31 March 2012

year: 79%).

1,346. There was a strong decrease in the average number of At the end of the reporting period, a total of 1,220 people were employed in the Services division, corresponding to

freelancers employed. Compared to 1,383 persons on 30 June 2011, the number fell to 1,022 one year later. This

year-on-year growth of 4% or 42 persons. This increase

was due to the planned reduction in activities for a major

in headcount was due to the acquisition of the consulting

client in the field of Third Party Management.

division of G2 Systems in the USA and the expansion of activities in Spain.

Employees by country as of 30 June

There was also a rise in headcount in the Resourcing 2012

2011

Germany

271

280

division. At the end of the first six months, a total of 105 persons worked in this segment (prev. year: 99).

Brazil

150

157

France

Switzerland Spain USA Total

Foreign share in %

829

778

1,371

1,317

➜

❘

Consolidated Interim Management Report

Research and development

Subsequent events

In the first half of 2012, the GFT Group spent €1.01 mil-

No events occurred after the balance sheet date as at

lion on research and development activities. This represents

30 June 2012 that are of major significance to GFT.

an increase of 3% over the same period last year (€0.98 million). These expenses resulted mainly from R&D activities in connection with the following initiatives: GFT mobile sales & advisory (formerly a-touch) refers to the IT-aided solution for advisors in the field of private banking and wealth management, which GFT continued to develop in the first six months of 2012. Thanks to its special security components, it is suitable for use on mobile devices and provides system-supported implementation of all compliance requirements.

Opportunity and risk report In the first six 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.

At its SAP Competence Centre, GFT develops suitable application possibilities to help banks migrate their IT systems to SAP software.

Forecast report

Under the title Mobile Finance, GFT pools its development activities in the field of platform-independent mobile applications for financial service providers. These activities were intensified in the period under review, for example with the expansion of the Mobile Finance Competence Centre.

Macroeconomic development The global economic prospects remain modest. The International Monetary Fund (IMF) has downgraded its April growth forecast for 2013 from 4.1% to 3.9%. The figures published in July 2012 already assume that measures taken

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

by Europe’s politicians to alleviate the crisis will gradually

field of applied innovation management in its internal

produce positive effects.

»Applied Technologies Group«.

A further assumption used by the IMF in its World Economic Outlook concerns the emerging economies, such as

GFT continued to optimise its software development processes in accordance with the international CMMI

Brazil, China and India. The economists already expect that

(Capability Maturity Model Integration) standard in order

more relaxed fiscal policies in these countries will begin

to ensure consistently high quality in its global develop-

to take effect. Nevertheless, the IMF has downgraded its

ment efforts.

forecast slightly for the main emerging economies. The

same applies to the USA. The IMF has also lowered its outlook for the Euro zone by 0.2 %-points. The experts now forecast economic growth of 0.7% for 2013. The outlook for Spain is especially pessimistic. Whereas the economists were still forecasting minimal growth of 0.1% in April, their outlook of July 2012 now predicts a decline in Spain’s gross domestic product of 0.6%.

Q1–2–2012

The forecasts for Germany continue to lie above the Euro

The shortage of skilled labour continues to hamper growth

zone average. The IMF has forecast growth of 1.4% for

in the German ICT market. Although a further 10,000

2013, representing a slight downgrade compared to its

jobs are forecast for the sector in 2012, some 63% of

1.5% forecast in April.

companies claim that they cannot find suitable staff to fill their vacancies. According to BITKOM, political efforts to

Sector development

encourage highly skilled foreign workers to emigrate to

According to the European Information Technology Obser-

Germany might provide short-term relief.

vatory (EITO), growth in the global ICT sector is expected to be strongest in the emerging nations. Their share of

Revenue and earnings forecast

total global demand is estimated to reach almost 50% by

For the second half of 2012, the GFT Group expects that

2020. Mobile phones, laptops and tablets will increasingly

the differing growth rates of its various client sectors

become the main hubs for accessing information technol-

will begin to converge. After the industrial sector and

ogy. Investments in ICT infrastructure and the expansion of

telecommunications industry, demand is now expected

capacities will be particularly high in these countries.

to improve throughout the finance sector. In view of the

In Western Europe, revenue is expected to grow by 1.2% to €617 billion in 2012 – provided that there is no deteri oration of the Euro crisis. The EITO forecast sees growth of 1.4% in 2013. The German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) published figures in June 2012 which indicate that 73% of Germany’s ICT companies expect increasing revenues in 2012. At the same time, the high-tech association confirmed the forecast it published in March: it expects sales of products and services in the field of information technology, telecommunication and consumer electronics to rise by 1.6% to €151 billion in 2012. The forecasts made in spring continue to apply for the ICT sector: the association expects revenue to grow by 4.5% to €73.2 billion in the current year.

general conditions for the economy as a whole and for the IT sector, this will have a positive impact on the Group’s development. In the second half of the year, the Group expects a consistently positive development in the Resourcing segment and increased growth in the Services segment. In the Services segment, growth is expected to be driven by the field of corporate and investment banking. Together with consistently high demand for outsourcing services and modern core banking and customer management systems, this will have a positive impact on revenue and earnings. There will also be an increasing need among financial institutes for IT solutions to meet rising compliance requirements. These clients are also expected to invest in future-oriented services again, such as mobile banking. With its wide range of products and services, GFT already occupies these topics and can swiftly and efficiently meet any rise in demand.

➜

❘

Consolidated Interim Management Report

In the second half of the year, the Resourcing division is

Based on the statements made above, the Executive Board

expected to benefit further from the strong demand for

of GFT is optimistic that it can close financial year 2012

freelance IT specialists. With its international network of

in line with planning. To this end, we intend to utilise

specialists, this segment is well placed to serve the grow-

the specific opportunities presented to our two business

ing global need for skilled personnel. It is assumed that

divisions as efficiently as possible. In view of the ongoing

the industrial sector will maintain its current high level of

uncertainty of the financial markets, we are also keeping

capital spending throughout the year. The strong demand

a close eye on the ensuing risks and challenges and will

for highly skilled engineers used in international projects

continue to pursue our responsible business strategy. For

offers particularly attractive growth potential. In the course

2012 as a whole, we can confirm the forecast we made

of 2012, the Group’s higher-margin Resource Manage-

in the Consolidated Financial Statements 2011 and expect

ment business in particular is expected to achieve further

revenue of €250 million and pre-tax earnings of €12 mil-

growth across all sectors and countries. By focusing on this

lion.

business and strictly pursuing ongoing measures to enhance efficiency, GFT expects positive effects for segment earnings. In the remaining months of the current financial year, efforts to improve operations at our units in the UK and Switzerland will be intensified.

Stuttgart, 6 August 2012 GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz

Jean-François Bodin

Marika Lulay

Dr Jochen Ruetz

Executive Board (Chairman)

Executive Board

Q1–2–2012

Consolidated Statement of comprehensive Income for the period from 1 January to 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified) Partial Statement Affecting Net Income: Consolidated Income Statement Half-year

€

Revenue Other operating income

Second quarter

01/01/– 30/06/2012

01/01/– 30/06/2011

01/04/– 30/06/2012

01/04/– 30/06/2011

116,382,223.48

141,803,332.84

58,732,695.09

74,500,653.63

1,459,466.23

1,384,702.41

475,306.04

1,037,722.18

117,841,689.71

143,188,035.25

59,208,001.13

75,538,375.81

2,529.05

4,855.15

2,454.80

254.41

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

54,987,617.49

84,480,133.99

27,518,098.88

45,232,000.17

54,990,146.54

84,484,989.14

27,520,553.68

45,232,254.58

39,095,860.22

34,771,316.28

19,491,095.98

17,307,721.99

7,321,879.99

7,184,298.86

3,697,032.99

3,594,228.16

46,417,740.21

41,955,615.14

23,188,128.97

20,901,950.15

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

Depreciation on non-current intangible assets and of tangible assets

763,090.09

633,522.30

392,554.19

320,099.80

11,999,147.35

10,865,192.17

5,573,747.07

5,765,098.24

3,671,565.52

5,248,716.50

2,533,017.22

3,318,973.04

Other interest and similar income

238,602.13

405,279.98

107,485.56

246,073.28

Profit share from associates

-12,310.54

1,546.34

-15,260.48

4,363.36

0.00

121,523.93

0.00

57,649.88

115,246.54

12,447.47

112,161.55

10,417.07

Other operating expenses Result from operating activities

Depreciation on securities Interest and similar expenses Financial result

111,045.05

272,854.92

-19,936.47

182,369.69

Earnings before taxes

3,782,610.57

5,521,571.42

2,513,080.75

3,501,342.73

Taxes on income and earnings

1,422,341.54

1,889,206.56

778,700.58

1,221,983.34

Net income

2,360,269.03

3,632,364.86

1,734,380.17

2,279,359.39

– attributable to non-controlling equity holders

0.00

2,360,269.03

3,632,364.86

1,734,380.17

2,279,359.39

Net earnings per share – undiluted

0.09

0.14

0.07

0.09

Net earnings per share – diluted

0.09

0.14

0.07

0.09

– attributable to equity holders of the parent

➜

❘

Consolidated Interim Financial Statements

Partial Statement Not Affecting Net Income: Consolidated Income Statement Half-year

€

Net income

Second quarter

01/01/– 30/06/2012

01/01/– 30/06/2011

01/04/– 30/06/2012

01/04/– 30/06/2011

2,360,269.03

3,632,364.86

1,734,380.17

2,279,359.39

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

72,770.75

65,960.51

-186,957.03

-87,839.49

72,770.75

65,960.51

-186,957.03

-87,839.49

Exchange differences on translating foreign operations: – Profits/losses during the financial year

Income taxes on components of other result Other result

Total result

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

366,860.49

137,922.19

324,286.22

269,397.20

366,860.49

137,922.19

324,286.22

269,397.20

0.00

16,559.06

0.00

16,559.06

439,631.24

220,441.76

137,329.19

198,116.77

2,799,900.27

3,852,806.62

1,871,709.36

2,477,476.16

0.00

2,799,900.27

3,852,806.62

1,871,709.36

2,477,476.16

Q1–2–2012

Consolidated Balance Sheet as at 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified) Assets €

30/06/2012

31/12/2011

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

909,436.99

945,085.00

36,278,880.98

36,399,830.18

37,188,317.97

37,344,915.18

2,812,587.60

2,752,150.63

44,464.16

54,780.08

2,857,051.76

2,806,930.71

6,237,769.07

6,225,839.07

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

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

Other financial assets Current tax assets Deferred tax assets

34,145.56

47,356.10

6,271,914.63

6,273,195.17

411,974.62

433,155.26

513,626.04

514,567.53

4,397,632.42

4,201,543.60

51,640,517.44

51,574,307.45

51,682,490.10

50,962,108.83

1,188,300.00

982,520.00

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

514,996.21

582,758.96

22,978,422.61

32,472,593.37

278,431.27

402,304.83

1,929,298.99

1,305,256.69

78,571,939.18

86,707,542.68

130,212,456.62

138,281,850.13

➜

❘

Consolidated Interim Financial Statements

Shareholders‘ Equity and Liabilities €

30/06/2012

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 €10,000,000.00 (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

1,095,155.01

728,294.52

-543,114.49

-615,885.24

-7,302,325.79

-5,713,702.92

74,466,792.85

75,615,784.48

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

793,718.38

769,718.38

5,822,631.12

7,235,803.15

230,524.27

585,985.06

6,846,873.77

8,591,506.59

19,374,456.73

17,067,647.30

1,883,476.77

1,333,795.95

464,399.51

0.00

19,146,074.78

28,632,433.78

491,225.12

588,991.71

7,539,157.09

6,451,690.32

48,898,790.00

54,074,559.06

130,212,456.62

138,281,850.13

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

Q1–2–2012

Consolidated Statement of Changes in Equity as at 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

€

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

As at 30/06/2011

26,325,946.00

42,147,782.15

10,243,349.97

As at 01/01/2011

26,325,946.00

42,147,782.15

10,243,349.97

Total income and expenses for the period 01/01/–30/06/2011

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

Dividend payment May 2012

Total income and expenses for the period 01/01/–30/06/2012

As at 30/06/2012

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

137,922.19

82,519.57

3,632,364.86

3,852,806.62

0.00

3,852,806.62

-3,948,891.90

0.00

-3,948,891.90

of the parent

673,233.20

-345,280.43

-7,870,939.17

71,174,091.72

0.00

71,174,091.72

535,311.01

-427,800.00

-7,554,412.13

71,270,177.00

0.00

71,270,177.00

-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

-5,713,702.92

75,615,784.48

0.00

75,615,784.48

-3,948,891.90

0.00

-3,948,891.90

192,983.51

728,294.52

-188,085.24

-615,885.24

366,860.49

72,770.75

2,360,269.03

2,799,900.27

0.00

2,799,900.27

1,095,155.01

-543,114.49

-7,302,325.79

74,466,792.85

0.00

74,466,792.85

Q1–2–2012

Consolidated Cash Flow Statement for the period from 1 January to 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

Half-year

€

Net income

01/01/– 30/06/2012

01/01/– 30/06/2011

2,360,269.03

3,632,364.86

Depreciation on non-current intangible and tangible assets

763,090.09

633,522.30

Changes in provisions

917,637.40

2,527,292.96

27,673.34

69,610.69

4,551.00

19,986.31

Changes in trade receivables

-720,381.27

-20,197,806.95

Changes in other assets

-606,372.68

-680,670.01

-8,322,578.04

2,374,753.84

251,367.42

15,613.53

-5,324,743.71

-11,605,332.47

Other non-cash expenses/income Profit from the disposal of long-term tangible and intangible assets as well as financial assets

Changes in trade liabilities and other liabilities Other changes in equity Cash flow from operating activities

Cash receipts from sales of tangible assets

0.00

450.00

Cash payments to acquire tangible assets

-638,241.00

-497,679.97

Cash payments to acquire non-current intangible assets

-162,186.73

-238,531.11

Cash receipts from sales of financial assets

0.00

6,226,500.00

Cash receipts from sale of consolidated companies net of cash and cash equivalents disposed of

0.00

-6,329,816.98

-800,427.73

-839,078.06

464,399.51

271,697.47

-3,948,891.90

Cash flow from investing activities

Cash receipts from taking out short-term or long-term loans Payments to shareholders Other changes in equity and minority interest

0.00

137,922.19

-3,484,492.39

-3,539,272.24

115,493.07

-15,613.53

Change in cash funds from cash-relevant transactions

-9,494,170.76

-15,999,296.30

Cash funds at the beginning of the period

32,472,593.37

26,232,995.13

Cash funds at the end of the period

22,978,422.61

10,233,698.83

Cash flow from financing activities

Effect of exchange rate changes on cash and cash equivalents

Cash flow from operating activities includes cash flow from income taxes of € -1,655 thousand (net payment; prev. year: € -1,012 thousand). Cash flow from operating activities includes cash flow from interest paid of € 4 thousand (prev. year: € 14 thousand) and cash flow from interest received of € 230 thousand (prev. year: € 517 thousand).

➜

❘

Notes

Notes to the Interim Financial Statements as at 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (unaudited)

Fundamentals for the GFT Group’s Interim Financial Statements

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

These unaudited Interim Financial Statements of GFT Technologies

ance of currency-related cash flows led us to list these separately in the

Aktiengesellschaft (»GFT AG«) and its subsidiaries have been prepared

Cash Flow Statement. The prior-year figures were adjusted accordingly.

in accordance with section 37w (3) of the German Securities Trading Act (WpHG) and International Accounting Standard (IAS) 34 – Interim Financial Reporting. Compared to the Annual Financial Statements as at 31 December 2011, the Interim Financial Statements include condensed reporting in the Notes to the Financial Statements and comply with the International Financial Reporting Standards (IFRS) as adopted by the European Union.

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.

With the exception of changes to the Cash Flow Statement, 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. New or amended standards and interpretations to be applied as of the beginning of the financial year 2012 did not have any major effect on the Interim Financial Statements. The increasing import

Changes to the consolidated group and its associated companies

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

The following changes to the scope of consolidation have occurred since

in the first half-year 2011. Its contribution to revenue in the first half-

the Consolidated Financial Statements were closed on 31 December

year 2012 amounted to €3.78 million (in the first half-year 2011 €0.58

2011: On 13 April 2012, GFT Technologies AG acquired Neckarsee 254.VV

for one month), with a contribution to net income of €0.93 million (in the first half-year 2011 €0.20 million for one month).

GmbH and changed its name to GFT Beteiligungs-GmbH on 18 June

The comparability of the Income Statement and Cash Flow Statement

2012. The company’s offices are located in Filderhauptstrasse 142,

for the first half-year 2012 and the first half-year 2011 is thus impaired.

70599 Stuttgart, Germany. Since its foundation, GFT Beteiligungs-GmbH has not conducted any significant operating activities. As a consequence, its initial consolidation did not have any major effect on the Group’s assets, financial and earnings position. The following changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 30 June 2011: On 9 June 2011 (acquisition date), GFT AG acquired 100% of equity shares with voting rights in Asymo AG, Adliswil, Switzerland, and thus gained control of the acquired company. Asymo AG is a Swiss IT con sultancy for the core banking solution »Avaloq«. The company was included in the Consolidated Financial Statements for the first time on the date of acquisition, 9 June 2011. It was therefore included in the Income Statement and Cash Flow Statement for the first half-year 2012 for a period of six months, compared to just one month

In the first half-year 2012, the following adjustment was made with regard to the business combination with GFT Financial Solutions AG, Opfikon, Switzerland (formerly Asymo AG, Adliswil, Switzerland): Compared to the parameters used in planning calculations, the expected value of the conditional consideration (not discounted) was reduced from CHF6.0 million to CHF5.5 million due to subsequent improved data. Moreover, there were foreign exchange losses of €0.1 million with regard to the measurement of the conditional consideration. As a result of the above mentioned effects, the carrying value of the conditional consideration was reduced in total by €0.4 million.

Q1–2–2012

The resulting goodwill from the acquisition of Asymo AG developed as follows:

€10.9 million

Goodwill Asymo AG as at 1 January 2012

€0.3 million

Foreign exchange adjustment Adjustment to the expected value of the conditional consideration

€-0.5 million

Goodwill Asymo AG as at 30 June 2012

€10.7 million

Changes in equity

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

For the changes in equity capital between 1 January 2012 and 30 June

The following changes in the Company’s conditional capital were made

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

between 1 January 2012 and 30 June 2012 relative to 31 December

which is disclosed separately.

2011:

As of 30 June 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.

Conditional capital By resolution of the Annual General Meeting on 22 May 2012, Conditional Capital II/2007 was cancelled and § 4 (6) of the Company’s Articles amended and published in the Federal Gazette. By resolution of

In May 2012, a dividend of €0.15 per share was distributed to share-

the Annual General Meeting on 22 May 2012, new conditional capital

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

of €10,000,000.00 was created.

parent company GFT AG (the prior-year dividend in June 2011 of €0.15 per share also totalled €3,949 thousand) As of 30 June 20112, GFT AG did not hold any of its own shares, nor did it purchase or sell any of its own shares in the period 1 January 2012 to 30 June 2012.

Segment reporting

GFT has once again identified the two segments Services and Resourcing

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

as reportable segments. The identification of these segments was mainly

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

based on the fact that the products and services offered in these seg-

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

ments show differences, and that the GFT Group is organised, managed

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

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 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 segments. Intersegment transactions take place at market prices on an arm’s length principle.

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:

➜

€ thsd.

Total segment revenue Elimination of intersegment revenue Group revenue

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

❘

Notes

01/01/– 30/06/2012

01/01/– 30/06/2011

118,683

145,086

-2,301

-3,283

116,382

141,803

5,398

6,213

-2,500

-742

876

3,783

5,522

30/06/2012

30/06/2011

116,575

121,434

116

Securities

7,426

7,859

Assets from income taxes

5,946

5,703

149

130,212

135,090

52,878

60,630

322

254

2,114

3,032

Other Group assets

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

The reconciliation discloses items which per definition are not com ponents 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.

432

55,746

63,916

Q1–2–2012

Notes – information on business segments – Segment report GFT Technologies Aktiengesellschaft, Stuttgart (not certified) Services

€ thsd.

External sales Inter-segment sales

Resourcing

30/06/2012

30/06/2011

30/06/2012

30/06/2011

60,849

58,259

55,533

83,544

2,288

3,283

60,862

58,259

57,821

86,827

-578

-496

-158

-118

-32

-23

Interest expenses

-70

-16

-13

-48

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

-13

4,252

4,564

1,146

1,649

77,827

68,453

38,748

52,981

Total revenues

Scheduled depreciation Significant non-cash income/expenditure other than depreciation Interest income

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

684

6,960

135

27,942

21,397

24,936

39,233

➜

Total

Eliminations

❘

Notes

Consolidated

30/06/2012

30/06/2011

30/06/2012

30/06/2011

30/06/2012

30/06/2011

116,382

141,803

116,382

141,803

2,301

3,283

-2,301

-3,283

118,683

145,086

-2,301

-3,283

116,382

141,803

-736

-614

-27

-20

-763

-634

-32

-23

-47

-28

-70

190

345

239

405

-83

-64

-32

-115

-12

-13

5,398

6,213

-1,615

-691

3,783

5,522

116,575

121,434

13,637

13,656

130,212

135,090

775

7,095

800

7,116

52,878

60,630

2,868

3,286

55,746

63,916

Q1–2–2012

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 2

01/01/– 30/06/2012

01/01/– 30/06/2011

30/06/2012

30/06/2011

Germany

44.72

79.50

32.67

28.35

18.11

19.23

0.07

0.13

Spain

13.95

13.16

1.21

0.98

France

€ million

19.92

15.49

0.10

0.07

USA

5.96

3.46

5.33

0.00

Switzerland

6.19

4.85

0.38

0.17

Other countries Total

7.53

6.11

0.29

0.30

116.38

141.80

40.05

30.00

Determined by client location

Group as a whole

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

Revenue

Segments in which this revenue is generated

€ million

01/01/– 30/06/2012

01/01/– 30/06/2011

30/06/2012

30/06/2011

Client 1

36.26

66.86

Services, Resourcing

➜

Changes to contingent liabilities and receivables

❘

Notes

As of 30 June 2012, there were no significant changes to contin gencies and other financial commitments compared to the Consolidated Financial Statements as at 31 December 2011. As at 31 December, there were no contingent receivables.

Investments/disinvestments

During the period 1 January 2012 to 30 June 2012, the GFT Group invested €162 thousand in intangible assets (1 January–30 June 2011: €6,618 thousand), of which goodwill accounted for €0 (1 January– 30 June 2011: €6,380 thousand), and €638 thousand in tangible assets (1 January–30 June 2011: €498 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.

Events after the interim reporting period

There were no significant events after the interim reporting period which were not considered in the Interim Financial Statements.

Stuttgart, 6 August 2012 GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz

Jean-François Bodin

Marika Lulay

Dr Jochen Ruetz

Executive Board (Chairman)

Executive Board

Q1–2–2012

Review report

To GFT Technologies AG, Stuttgart, for the attention of the members of the Supervisory Board We have reviewed the condensed consolidated interim financial statements – comprising the statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and selected explanatory notes – and the interim Group management report of GFT Technologies AG, Stuttgart, for the period from 1 January to 30 June 2012, which are part of the half-yearly financial report pursuant to § 37w WpHG (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRSs applicable to the interim financial reporting as adopted by the EU and to the interim Group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent company’s board of management. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim Group management report based on our review. We conducted our review of the condensed consolidated interim financial statements and the interim Group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). These standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU, the IFRSs as issued by the IASB applicable to the interim financial reporting and that the interim Group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion. Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU nor that the interim Group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.

Stuttgart, 7 August 2012 KPMG AG Wirtschaftsprüfungsgesellschaft

Hanns-Jörg Schwebler

Kirsten Serrano

Auditor Auditor

Financial Calendar

Further information

Quarterly Financial Report as of 30 September 2012

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

8 November 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 company and the GFT share.

GFT Technologies AG 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