GFT Quarterly Financial Report Q1/2013

ingneerpio

digital

quarterly financial report

as of 31 March 2013

1st quarter

01/01/– 31/03/2013

01/01/– 31/03/2012

Change

Income Statement

Revenue €m 55.51 57.65 -3.7%

Earnings before interest, taxes, depreciation

and amortisation (EBITDA) €m 1.86 1.51 23.2%

Earnings before interest and taxes (EBIT) €m 1.51 1.14 32.5%

Earnings before taxes (EBT) €m 1.55 1.27 21.8%

Net income as of 31 March €m 1.14 0.63 82.6%

Balance Sheet

Other non-current assets €m 47.38 45.49 4.1%

Cash, cash equivalents and securities €m 29.76 27.52 8.1%

Other current assets €m 54.92 57.86 -5.1%

ASSETS €m 132.06 130.87 0.9%

Non-current liabilities €m 6.72 9.80 -31.4%

Current liabilities €m 45.91 45.52 0.9%

Shareholders´ equity €m 79.43 75.55 5.1%

SHAREHOLDERS’ EQUITY AND LIABILITIES €m 132.06 130.87 0.9%

Equity ratio % 60 58 2%-points

Cash flow

Cash flow from operating activities €m -9.29 -12.59 -26.2%

Cash flow from investing activities €m -2.18 -0.14 1,446.1%

Cash flow from financing activities €m 0.87 0.09 845.7%

Employees

Number of permanent employees (as of 31 March) no. 1,457 1,346 8.2%

Share

Earnings per share € 0.04 0.02 82.6%

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

KEY fIgURES ACCORDINg TO IfRS(unaudited)

Q1–2013

1➜ ❘ Highlights

following the scheduled progress of business in the first quarter, the Executive

Board confirms its annual forecast for the gfT group. The Executive Board

expects the gfT group to make good progress in 2013 with revenue growth

of 3% to €238 million and pre-tax earnings of €12 to €13 million. With

a more focused profile, the group aims to achieve profitable and sustainable

growth in the coming years.

Consolidated Interim Management Report … 2 | Consolidated Interim financial Statements … 14

Notes to the Interim financial Statements … 21

CONTENTS

Revenue

€ million 2012 2013

Q4 56.08 0.00

Q3 58.23 0.00

Q2 58.73 0.00

Q1 57.65 55.51

230.69 55.51

Earnings before taxes

€ million 2012 2013

Q4 4.31 0.00

Q3 4.02 0.00

Q2 2.51 0.00

Q1 1.27 1.55

12.11 1.55

Q1–2013

Economic environment

Macroeconomic development

In its Economic Outlook of April 2013, the International

Monetary fund (IMf) reports that the global economy be-

came far more stable towards the end of the first quarter

of 2013 – despite its persistent crises and fresh turbulence.

The Organisation for Economic Cooperation and Develop-

ment (OECD) also believes that the situation is now less

tense. According to leading economists, this is partly due

to action taken by the USA to combat its financial crisis

and partly the result of monetary measures taken by the

European Central Bank.

According to the IMf, however, there is a growing diver-

gence between the industrialised nations, which have

displayed more or less consistently weak growth since

the financial crisis: in America, the upswing is becoming

noticeably stronger, while the eurozone has remained

firmly in recession during 2013. The greatest worry is now

france, which is threatening to slide into recession. This is

also confirmed by the OECD’s experts, who at the same

time praise the efforts of greece, Ireland, Portugal and

Spain to introduce reforms. So far, however, these efforts

have failed to produce any significant recovery in Europe’s

economy.

The only exception is germany: economic growth here

continues to outpace that of its major European rivals and

the OECD forecasts an upswing. Compared to the nega-

tive growth of its neighbours, both the OECD and IMf put

growth in germany at 0.6% for the first quarter of 2013 –

following growth of 0.9% for 2012 as a whole.

Sector development

According to the latest business confidence survey of the

german federal Association for Information Technology,

Telecommunications and New Media (BITKOM) in febru-

ary, the german IT sector got off to a strong start in 2013.

Three quarters of all IT and telecommunication companies

currently expect rising revenues. Software firms and IT

service providers are particularly upbeat: 87% and 82%

of these companies, respectively, anticipate revenue

growth in the current year.

This also means good prospects for the labour market.

More than half of all companies (57%) are looking to hire

new staff in the course of the year. The shortage of skilled

labour continues to be a dominant topic in the sector.

According to BITKOM, 53% of all ICT companies believe

this issue to be the greatest obstacle to further growth.

In its annual survey of ICT trends in January 2013, BITKOM

reported that Big Data has now firmly established itself as

the most important high-tech topic, together with Cloud

Computing. Two further key strategic focus areas of gfT,

Mobile Applications and Social Media, were also high in

the BITKOM rankings.

group Management Reportof gfT Technologies Ag as of 31 March 2013(unaudited)

Business environment

2

Course of business gfT share

Despite the ongoing weakness of the eurozone econo-

mies, the gfT group started well in its financial year 2013.

With consolidated revenue of €55.51 million (prev. year:

€57.65 million), the group fell 4% short of the prior-year

figure. Adjusted for the planned reduction of revenue

from its low-margin Third Party Management business

(amounting to €4.25 million in the first quarter), however,

the group’s core business grew by 4% in the first three

months. Pre-tax earnings (EBT) improved by 22% to €1.55

million (prev. year: €1.27 million). This figure includes costs

for the CODE_n innovation drive amounting to €0.77

million (prev. year: €1.25 million).

There was particularly encouraging growth in the gfT

Solutions division, which achieved revenue of €32.40 million

and thus exceeded the prior-year figure (€30.49 million)

by 6%. This positive development of revenues was helped

by stable sales of banking solutions and growing demand

for outsourcing services and compliance solutions. growth

rates were particularly high in the regions germany and

the UK. Thanks to positive margin effects and a high level

of capacity utilisation, earnings in this segment increased

by 33% to €2.41 million (prev. year: €1.81 million).

The emagine division, which is continuing its realignment

process in 2013, posted revenue of €23.09 million – 15%

down on the previous year (€27.16 million). Although

activities involved with helping companies recruit highly

skilled IT and engineering specialists for technology pro-

jects achieved slight growth in revenue to €22.45 million

(prev. year: €21.93 million), the division’s Third Party

Management business only contributed €0.64 million to

segment revenue (prev. year: €5.23 million). for fiscal

2013, the planned reduction in revenue from this business

will amount to around €15 million. Segment earnings of

the emagine division were burdened by realignment costs

and amounted to €0.10 million (prev. year: €0.68 million).

The positive upwards trend on the stock markets con-

tinued in the first quarter of 2013. Encouraging economic

data and corporate results helped create stable conditions

around the world in the first three months. Although the

eurozone was unsettled in february by the forthcoming

Italian elections, this was offset by very good export figures

for germany and China and a more upbeat business

climate: the IfO business confidence index published on

22 february 2013 reached its highest level since July 2010.

In March, the german blue-chip DAX30 index briefly

climbed to a five-year-high of over 8,000 points. The

discussions surrounding a rescue package for Cyprus, how-

ever, led to renewed uncertainty on the world’s financial

markets. The DAX closed at 7,795 points on 28 March

2013 – representing growth of 2.4% in the first quarter.

The TecDAX index also made good progress. Instead of

lagging behind the DAX, as in recent times, it posted

growth of 12.6% in the first three months – and rising.

The tech stock barometer had previously suffered consid-

erable fluctuations due to the poor performance of solar

energy shares.

In this positive stock market environment, shares in gfT

Technologies Ag also performed strongly at the beginning

of 2013, climbing to a year-high to date of €3.50 on

21 January. The upward trend which began in late 2012

was thus successfully continued with further growth again

in Xetra trading volumes. After peaking early in the year,

there followed a period of consolidation with sideways

trends at a high level. On publication of the preliminary

annual results on 28 february, the share price fell below

the supporting 38-day line (€3.42). The gfT share did not

recover until late March when it rose again to €3.50. All in

all, the share recorded quarterly growth of 6.17%.

3➜ ❘ Consolidated Interim Management Report

Q1–20134

Information on the GFT share

Q1 2013 Q1 2012

Year-opening quotation (Xetra) €3.18 €2.75

Closing quotation on 31 March

(daily closing prices Xetra)

€3.44 €3.10

Change in share price compared to

year-closing quotation (2012: €3.24, 2011: €2.72)

+6% +14%

Highest price


€3.50

(21/01/2013)

€3.20

(02/03/2012,

13/03/–16/03/2012

20/03/–21/03/2012)

Lowest price


€3.20

(03/01/2013,

07/01/2013)

€2.75

(02/01/2012)

Number of shares at end of quarter 26,325,946 26,325,946

Market capitalisation at end of quarter €90.56 million €81.61 million

Average daily trading volume in shares

(Xetra und frankfurt)

19,476 15,266

Earnings per share €0.04 €0.02

ISIN DE 0005800601

Initial stock market quotation 28/06/1999

Market segment Prime Standard

Share performance indexed

gfT share

Technology All Share Performance Index

2 January 2013 (closing price Xetra)

€3.22 = 100%

28 March 2013 (closing price Xetra)

€ 3.44

100

120

Shareholder structure

There were no changes in the shareholder structure of

gfT Technologies Ag in the period under review. 28.08%

of shares are still held by company founder Ulrich Dietz.

Maria Dietz owns 9.68% of voting shares, while former

Supervisory Board member Dr Markus Kerber holds 5.00%.

The free float portion comprises 57.24% of all gfT shares.

In the first quarter of 2013, the gfT group generated

consolidated revenue of €55.51 million, some 4% below

the prior-year figure (€57.65 million). The planned reduc-

tion in Third Party Management business amounted

to €4.25 million in the first three months. Adjusted for

this discontinued revenue contribution, the group’s

core business grew by 4% year on year.

In its GFT Solutions division, gfT achieved revenue

growth of 6% to €32.40 million in the first quarter of

2013 (prev. year: €30.49 million). Revenues in this division

were driven by growing compliance requirements in the

finance sector and especially projects relating to the intro-

duction of the Single Euro Payments Area (SEPA). growth

was helped further by rising demand for mobile banking

solutions. The division’s share of consolidated revenue

rose to 58% (prev. year: 53%).

In the emagine division, revenue was 15% down on the

previous year at €23.09 million for the first three months

of 2013 (prev. year: €27.16 million). This figure includes

the planned reduction of revenues in the lower-margin

Third Party Management business of €4.25 million. With

its consultancy services for the staffing of technology

projects with highly skilled IT and engineering experts,

revenues of the emagine division grew slightly to €22.45

million (prev. year: €21.93 million). All in all, this division’s

share of consolidated revenue fell to 42% (prev. year:

47%).


Development of revenue

Revenue by segment

Q1 2013 € million

gfT Solutions 58% 32.40

emagine 42% 23.09

Others 0% 0.02

%

Ulrich Dietz 28.08

Maria Dietz 9.68

Dr Markus Kerber 5.00

free float 57.24

Shareholder structure

Q1–20136

Revenue by country

Germany, which is affected most by the withdrawal from

Third Party Management business, reported a fall in reve-

nue of 15% to €18.26 million (prev. year: €21.43 million).

The region remained the gfT group’s largest sales market

with a share of total revenue of 33% (prev. year: 37%).

The gfT group recorded its strongest first-quarter revenue

growth in the UK with an increase of 27% to €11.80 mil-

lion (prev. year: €9.30 million). This positive development

was driven by the gfT Solutions division, while the ema-

gine division fell just short of its prior-year revenue figure.

This region’s share of group revenue rose to 21% (prev.

year: 16%).

There was also encouraging progress in the group’s busi-

ness in France. Driven by demand for IT and engineering

specialists in the industrial and service sectors, revenue

grew by 13% to €10.99 million (prev. year: €9.75 million).

The region’s share of group revenue rose to 20% (prev.

year: 17%).

In Switzerland, revenue reached €2.23 million and was

thus down 35% on the previous year (€3.45 million). The

region’s share of group revenue amounted to 4% (prev.

year: 6%). The decline is mainly due to the discontinuation

of local emagine business in the third quarter of the previ-

ous year.

In Spain, the gfT group posted revenue of €6.91 million,

which corresponded to slight year-on-year growth of 4%

(€6.65 million). The region accounts for 12% of group

revenue (prev. year: 12%).

In the USA, revenue fell by 23% to €2.01 million (prev.

year: €2.60 million). Revenue from »Other countries«

reached €3.32 million (prev. year: €4.48 million), corre-

sponding to a decline of 26%.

Revenue by industry

At the beginning of financial year 2013, revenue by in-

dustry was reclassified in order to reflect business in the

relevant target markets more accurately. Prior-year figures

were adjusted accordingly. With a 61% share of the gfT

group’s total revenue (prev. year: 60%), the Financial

service providers sector remained the most important

industry for gfT in the first quarter of 2013. Revenue

losses from discontinued Third Party Management business

were almost completely offset in this sector by revenue

growth in the gfT Solutions segment. As a result, revenue

remained largely unchanged at €33.58 million (€34.35

million).

Revenue by country

Q1 2013 € million

germany 33% 18.26

UK 21% 11.80

france 20% 10.99

Spain 12% 6.91

Switzerland 4% 2.23

USA 4% 2.01

Other countries 6% 3.32


There was a strong increase of 11% to €13.94 million

(prev. year: €12.52 million) in revenue generated by the

»Other industries« segment, especially with industrial

clients. This sector accounted for 25% of total revenue

(prev. year: 21%). The growth in revenue resulted mainly

from increased demand for IT experts and engineers for

staffing technology projects as well as from increased rev-

enues in the emagine segment.

Revenue in the »Other service providers« sector fell by

26% to €7.99 million (prev. year: €10.78 million), due to

reduced revenues in both the emagine segment and gfT

Solutions segment. The sector’s percentage contribution to

revenue amounted to 14% (prev. year:19%).

In the first quarter of 2013, earnings before taxes (EBT)

of the gfT group amounted to €1.55 million and were

thus 22% down on the previous year (€1.27 million). The

operating margin before taxes was improved by 0.6 %-

points from 2.2% in the previous year to 2.8% at present.

Earnings before interest and taxes (EBIT) amounted

to €1.51 million in the reporting period and were thus up

32% on the prior-year figure (€1.14 million). Earnings

before interest, taxes, depreciation and amortisation

(EBITDA) rose by 23% to €1.86 million (prev. year: €1.51

million).

Net income of the gfT group in the first quarter of 2013

amounted to €1.14 million. This represents year-on-year

growth of €0.51 million or 83% (prev. year: €0.63 million).

The reason was a reduction in the calculated tax ratio

from 51% in the previous year to 26% now, as a result

of a balanced distribution of earnings among the national

companies.

In line with this increased net income for the quarter, earn-

ings per share improved by €0.02 in the reporting period

to €0.04 per share (prev. year: €0.02 per share). These fig-

ures are based on an average of 26,325,946 out standing

shares.

Consolidated earnings position by segment

In the first quarter of 2013, earnings of the GFT Solutions

segment rose by 33% to €2.41 million (prev. year: €1.81

million). Its operating margin reached 7.4%, correspond-

ing to year-on-year growth of 1.5 %-points (prev. year:

5.9%). This rise in earnings results mainly from the gener-

ally positive development of business.

Earnings in the emagine segment were burdened by

expenses involved with the realignment of the division and

amounted to €0.10 million after the first three months of

2013 (prev. year: €0.68 million). The operating margin de-

teriorated by 2 %-points to 0.4% (prev. year: 2.4%).

Revenue by industry

Q1 2013 € million

financial service providers 61% 33.58

Other industries 25% 13.94

Other service providers 14% 7.99

Earnings position

Q1–20138

The »Others« category comprises costs of the holding

company and consolidation amounts which cannot be

directly charged to either of the two aforementioned divi-

sions. At €-0.96 million, pre-tax earnings of this division

were up on the previous year (€-1.22 million). The largest

individual items in this category were the costs for the

CODE_n project and CeBIT fair presence totalling €0.77

million (prev. year: €1.25 million). Thanks to optimised cost

management and higher external partner contributions,

total expenses for the project were reduced by 38% com-

pared to the previous year.

Consolidated earnings position by income and expense items

In the first quarter of 2013, other operating income in-

creased slightly to €1.01 million (prev. year: €0.98 million).

This was mainly due to other operating income – especially

income from CODE_n partner contracts – as well as cur-

rency gains.

The item cost of materials and purchased services

– mainly comprising the use of external manpower – fell

by €3.26 million to €24.21 million (prev. year: €27.47

million). The higher prior-year figure results from greater

revenues in Third Party Management business and the

resulting purchase of external employees. As a proportion

of revenue, the cost of materials consequently fell year on

year by 4 %-points to 44% (prev. year: 48%).

At €23.33 million, personnel expenses remained virtually

unchanged from the previous year (€23.23 million). As a

proportion of revenue, personnel expenses were up slightly

to 42% (prev. year: 40%). This moderate increase was a

result of the increased revenue share of the more labour-

intensive gfT Solutions segment to 58% (prev. year: 53%)

and the related increase in headcount in this division.

Depreciation of intangible and tangible assets

amounted to €0.36 million in the first quarter and was

thus almost unchanged from the previous year (€0.37

million). However, this item had only a minor impact on

ordinary operating profits.

Other operating expenses increased to €7.12 million in

the first quarter of 2013, corresponding to a year-on-year

increase of 11% (prev. year: €6.43 million). The main cost

elements are operating, administrative and selling ex-

penses, which rose by €0.72 million to €6.67 million (prev.

year: €5.95 million). This item also includes other taxes and

exchange rate losses.

Earnings position by segment

€ million Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013

1.81 2.41 0.68 0.10 -1.22 -0.96 1.27 1.55

gfT Solutions emagine Others Total

Income taxes amounted to €0.40 million in the first quar-

ter and were thus €0.24 million below the prior-year figure

of €0.64 million. The calculated tax ratio fell strongly by

25 %-points in the reporting period to 26% (prev. year:

51%). This is due to a more even distribution of profits

among the various national subsidiaries.

financial position

As of 31 March 2013, cash, cash equivalents and secu-

rities amounted to €29.76 million and were thus €10.66

million below the corresponding figure at the end of 2012

(€40.42 million). The decline was due to a significant fall in

liquid funds, mainly due to the payment behaviour of cer-

tain clients, the distribution of bonuses for 2012 and the

reduction of payables.

Due to the delayed receipt of payments, trade receiva-

bles rose by €7.64 million to €51.85 million as of the

reporting date, compared with year-end 2012 (€44.21

million).

As of 31 March 2013, trade payables amounted to

€18.05 million – corresponding to a reduction of €1.78

million since the end of 2012 (€19.83 million). Compared

to the strong reduction in the previous year, liabilities have

remained relatively stable since the beginning of the year.

In comparison to the same period last year, cash flows

from operating activities improved to €-9.29 million

(prev. year: €-12.59 million). This is mainly due to the

much smaller change in trade payables and other liabilities,

which amounted to €-0.45 million in the reporting period.

In the same period last year, the figure was €-9.91 mil-

lion. At €-7.72 million, changes in trade receivables were

well above the prior-year figure (€-4.25 million). Working

capital (the difference between current assets and current

liabilities) amounted to €35.62 million as of the quarterly

reporting date and was thus slightly down on year-end

2012 (€37.26 million).

At €-2.18 million, cash flows from investing activi-

ties were well below the prior-year level (€-0.14 million).

This is due to the previously announced purchase of a

new administration building in Stuttgart as the company’s

future head office for a purchase price of €1.9 million.

This item also includes smaller investments in tangible

assets, including IT procurements.

As of 31 March 2013, cash flows from financing

activities amounted to €0.87 million and were thus

slightly above the prior-year figure (€0.09 million). This

figure concerns the use of short-term credit lines by a

foreign subsidiary.

Asset position

The requirements of IAS 19 (revised) were applied for the

first time in the financial statements for the first quarter

of 2013. As a consequence, actuarial gains and losses must

now be recognised in equity without an effect on profit or

loss. This necessitates the retroactive adjustment of various

balance sheet items as of 31 December 2012. further

details on this topic are provided in the Notes to the

Interim Consolidated financial Statements.

As of 31 March 2013, the balance sheet total of the gfT

group was down slightly by €0.42 million and stood at

€132.06 million. At the end of the financial year 2012, the

total amounted to €132.48 million.

In terms of asset there was a significant change in current

assets and especially in cash and cash equivalents.

Compared to 31 December 2012 (€48.17 million), non-

current assets were up by €2.37 million to €50.54 mil-

lion. This was largely due to additions to tangible assets

resulting from the purchase of the new administration

building.

As of 31 March 2013, current assets were well below

their year-end 2012 level (€84.31 million), falling by €2.79

million to €81.52 million. The decline was mainly due to

the sharp fall in liquid funds of €10.67 million to €25.24

million. By contrast, trade receivables increased by €7.64

million to €51.85 million.


Q1–2013

At the end of the quarter, equity amounted to €79.43

million and was thus €1.19 million above the correspond-

ing figure on the balance sheet date of 31 December 2012

(€78.24 million). The change was mainly due to a reduc-

tion in the balance sheet loss from €-3.83 to €-2.68 mil-

lion. As a consequence of this reduction, the equity ratio

also rose from 59% as of 31 December 2012 to 60% at

the end of the first quarter 2013.

There was a decline in current liabilities of €1.15 million,

mainly as a result of the fall in other provisions amounting

to €1.84 million. This was due to the payment of bonuses

from the previous year and the resulting reduction in pro-

visions. Trade payables fell by €1.78 million to €18.05 mil-

lion, compared to €19.83 million as of 31 December 2012.

There was an opposing increase in other liabilities of

€1.36 million to €9.05 million in total.

There was only a slight change in non-current liabilities

during the period under review. As of 31 March 2013,

they stood at €6.72 million and were thus down by €0.47

million. This decrease was due to a reclassification of non-

current to current liabilities due to maturity.

The equity/non-current assets ratio – the yardstick for

solid balance sheet structures – fell to 157% at the end of

the quarter (year-end 2012: 169%). This ratio expresses

the relationship between the balance sheet items »equity«

and »non-current assets« and provides information about

the company’s financial stability.

10

Group balance sheet structure

ASSETS € million 31/12/

2012

31/03/

2013

Cash and securities 40.42 29.76

Other current assets 47.08 54.92

Other non-current assets 44.98 47.38

132.48 132.06

31/03/

2013

31/12/

2012

EQUITY & LIABILITIES € million

45.91 47.05 Current liabilities

6.72 7.19 Non-current liabilities

79.43 78.24 Equity capital

132.06 132.48

As of 31 March 2013, the gfT group employed a total

of 1,457 people. This corresponds to an increase of 111

persons or 8% compared to the same date last year. The

upward trend since late 2012 was thus continued – at

year-end there were already 1,386 employees. Headcount

is calculated on the basis of full-time staff, whereby part-

time staff are included on a pro rata basis.

In the GFT Solutions division, the number of employees

rose by 10%: from 1,199 as of 31 March 2012 to

1,313 on 31 March 2013. There was a particularly strong

increase in Spain (up 125 persons or 15% to 932 employ-

ees). The emagine division employed 95 people. The

decrease of 6 persons corresponds to a 6% decline com-

pared to the same date last year. The »Others« category,

which comprises staff of the holding company, remained

virtually unchanged with an increase of 3 persons (7%) to

49 employees.

As of 31 March 2013, 279 people were employed in ger-

many (prev. year: 275). The proportion of gfT staff employed

outside germany (1.178 people) amounted to 81% (prev.

year: 80%).

Employees by country as of 31 March 2013

2013 2012

germany 279 275

Brazil 129 149

france 18 17

UK 34 31

Switzerland 44 49

Spain 932 807

USA 21 18

Total 1,457 1,346

Employees by division as of 31 March 2013

2013 2012

gfT Solutions 1,313 1,199

emagine 95 101

Others 49 46

Total 1,457 1,346

The number of freelance staff fell year on year by 28 to

913 persons (- 3%).

Research and development

The gfT group invested a total of €0.40 million in research

and development during the reporting period and thus

46% less than in the previous year (€0.74 million). The

largest share of this total (€0.32 million or 80%) was

accounted for by personnel expenses (prev. year: €0.45

million or 61%). The gfT group concentrated its R&D

efforts on the following strategic initiatives:

At the SAP Competence Centre, experts develop tailored

solutions for financial institutes, which help them integrate

SAP software into their existing IT platform. One of the key

topics in the first quarter of 2013 was the further develop-

ment of possible uses for in-memory databases based on

SAP HANA technology. This technology is integrated into

client solutions in order to significantly reduce the comput-

ing time for complex simulations, thus enhancing its use

in consultation sessions.

gfT’s Mobile Finance activities comprise the develop-

ment of key applications for mobile devices in the financial

services sector. In the first quarter, investments were made

for example in development and integration services for

the field of Mobile finance in order to design and imple-

ment tailored IT solutions and services for the finance

sector.


Employees

Q1–2013

In its internal Applied Technologies Group, gfT

pools all R&D activities in the field of applied innovation

management. Based on the open innovation approach,

the group initiates and coordinates innovation projects in

line with the current solution needs of our clients.

In order to ensure consistently high quality in its global

development efforts, software development processes

were further optimised in accordance with the interna-

tional CMMI® (Capability Maturity Model Integration)

standard.

Subsequent events

No events occurred after the reporting date as at 31 March

2013 that are of major significance to gfT.

Opportunity and risk report

In the first three months of 2013, there were no material

changes with regard to the comprehensive discussion of

opportunities and risks provided in the Management

Report accompanying the Consolidated financial State-

ments for 2012. The risk position of the gfT group is

thus largely unchanged.

forecast report

Macroeconomic development

In its World Economic Outlook published on 16 April

2013, the International Monetary fund (IMf) downgraded

its forecast for global economic growth slightly from 3.5%

to 3.3% – its fourth consecutive downgrade. Although the

global economy is becoming increasingly stable, Europe is

still the main risk for global financial stability following its

five rescue packages for member states so far. Experts are

also concerned about france’s impending slide into reces-

sion with an expected fall in economic output of 0.1%.

The IMf was still forecasting growth of 0.3% in January.

Although the german economy continues to prove re-

sistant to the eurozone debt crisis with expected growth

of 0.6%, the pace of growth is likely to slow compared to

last year (0.9%). This weak growth is increasingly restrict-

ing the ability of the eurozone’s key states to provide help

for the more marginal states where required. The IMf

forecasts an overall decline in output for the eurozone of

0.3%. Its outlook for the coming year is somewhat more

optimistic. The fund expects the global economy to grow

by 4.0% and the eurozone to return to growth of 1.1%.

Its experts forecast as much as 1.5% growth in germany.

Sector development

The industry association BITKOM believes that the high-

tech industry will continue to be an important driver of the

global economy in 2013. According to its latest economic

outlook of 4 March 2013, the global market for products

and services in the IT and telecommunication sector is

expected to grow this year by 5.1% to €2.7 trillion. With

a share of 21.8% and expected growth of 0.9%, the EU

is still the second-largest ICT market after the USA (26.8%

share and 6.5% growth).

With growth of 1.8% to €141.3 billion, BITKOM believes

that the german ICT market will easily outpace general

economic growth. According to the BITKOM forecast, the

IT services business (projects, consulting and outsourcing)

will grow by 2.5% to around €36 billion in 2013, follow-

ing growth of 2.1% in the previous year. Every second IT

company states that a lack of skilled staff is the greatest

hindrance to market growth. There are currently 43,000

vacancies for IT specialists in germany. The most important

trend topic is still Cloud Computing with revenue growth

for business solutions alone of 53% to €4.6 billion this

year and expected revenue of €13.7 billion in three years’

time. According to the BITKOM, other trend topics closely

linked to Cloud Computing – such as Big Data, Mobility,

Security and Industry 4.0 – are likely to benefit from this

strong growth.

Revenue and earnings forecast

In spite of the eurozone’s continuing weakness, the gfT

group is upholding its positive assessment of business

prospects for the financial year 2013 – providing there is no

serious deterioration of the economic environment due to a

further escalation of the debt crisis.

12

The gfT Solutions division is dedicated to delivering IT

solutions for the finance sector and gfT expects further

solid growth for this business in 2013. Demand for IT solu-

tions to optimise core banking systems is expected to rise

– especially in view of new compliance topics, such as the

introduction of a Single Euro Payments Area (SEPA). further

growth is expected to arise from increased competitive

pressure on banks, which are being forced to adapt their

business models to new technological developments in

order to compete with innovative financial service providers

and new Internet platforms. gfT therefore expects banks

to invest increasingly in new technologies for mobile pay-

ments and to use social media for enhanced client reten-

tion. In the field of mobile banking, financial institutes face

the challenge of protecting their IT systems against rising

fraud attempts with the aid of intelligent and user-friendly

security solutions. With its many years of experience in the

finance sector and a spectrum of services to address such

future-oriented topics, the gfT Solutions division is excel-

lently placed to exploit this growth potential. gfT therefore

expects growth in this division to outpace the IT Services

sector as a whole.

In 2013, the emagine division will drive its realignment as

an expert for staffing technology projects with IT and engi-

neering specialists. The division will focus on those growth

industries in germany, france and the UK which are expect-

ed to profit most from an economic upturn in the coming

years. In the field of IT, emagine will concentrate on future

topics and technology trends such as Big Data, Business

Intelligence, Social Media, IT Security and Mobile Technolo-

gies, in order to tap new growth fields. In the field of

engineering, emagine expects growth to be driven by a

rising demand for highly skilled engineers in the field

of plant and machine construction, as well as renewable

energies. gfT does not expect to be able to fully compen-

sate for revenue losses from the further reduction of its

low-margin Third Party Management business in the

current financial year. In the first half of the current year,

the emagine division will also be burdened by costs

for repositioning business under its own brand and for the

realignment of its internal structures.

following the scheduled progress of business in the first

quarter, the Executive Board confirms its annual forecast for

the gfT group which was announced on publication of the

Annual Report on 28 March 2013. The Executive Board ex-

pects the gfT group to make good progress in 2013. The

loss of revenue from the further reduction of low-margin

Third Party Management business amounting to around

€15 million is to be offset by organic growth in other divi-

sions during the current financial year. As a result of healthy

growth prospects for the gfT Solutions division, the Execu-

tive Board continues to forecast revenue growth of 3% to

€238 million and pre-tax earnings of €12 to €13 million for

the gfT group in 2013. With a more focused profile, the

group aims to achieve profitable and sustainable growth in

the coming years. The Executive Board now expects total

revenue of around €400 million and an operating pre-tax

profit margin of over 6% in 2015. The underlying business

plan assumes steady organic growth in combination with

targeted acquisitions in both business divisions.


Stuttgart, 7 May 2013

gfT Technologies Aktiengesellschaft

The Executive Board

Ulrich Dietz Jean-François Bodin Marika Lulay Dr. Jochen Ruetz

Executive Board Executive Board Executive Board Executive Board

(Chairman)

Q1–2013

for the period from 1 January to 31 March 2013gfT Technologies Aktiengesellschaft, Stuttgart, IfRS (unaudited)

CONSOLIDATED INCOME STATEMENT

1st quarter

€ 01/01/– 31/03/2013

01/01/– 31/03/2012

adjusted*

Revenue 55,510,355.98 57,649,528.39

Other operating income 1,007,177.24 984,160.19

56,517,533.22 58,633,688.58

Costs of purchased services 24,213,275.58 27,469,592.86

Personnel expenses:

a) Salaries and wages 19,514,546.76 19,604,764.24

b) Social security and expenditures for retirement pensions 3,814,834.70 3,624,847.00

23,329,381.46 23,229,611.24

Depreciation on non-current intangible

assets and of tangible assets 355,588.92 370,535.90

Other operating expenses 7,117,157.81 6,425,400.28

Result from operating activities 1,502,129.45 1,138,548.30

Other interest and similar income 94,860.32 131,116.57

Income from participations 0.00 0.00

Profit share from associates 6,497.12 2,949.94

Depreciation on securities 0.00 0.00

Interest and similar expenses 56,123.97 3,084.99

financial result 45,233.47 130,981.52

Earnings before taxes 1,547,362.92 1,269,529.82

Taxes on income and earnings 404,657.54 643,640.96

Net income 1,142,705.38 625,888.86

Net earnings per share – undiluted 0.04 0.02

Net earnings per share – diluted 0.04 0.02

* We refer to section 1 of the Notes to the financial Statements.

14

1st quarter

€ 01/01/– 31/03/2013

01/01/– 31/03/2012

adjusted*

Net income 1,142,705.38 625,888.86

A.) Components never reclassified to the income statement

Actuarial gains/losses 0.00 -405,555.55

Income taxes on components of other result 0.00 113,555.55

Other (partial) result A.) 0.00 -292,000.00

B.) Components which could be reclassified to the income statement

financial assets available for sale (securities):

– Change of fair value recognised in equity during the period 498.62 259,727.78

498.62 259,727.78

Exchange differences on translating foreign operations:

– Profits/losses during the period 48,595.64 42,574.27

48,595.64 42,574.27

Income taxes on components of other result -139.62 0.00

Other (partial) result B.) 48,954.64 302,302.05

Other result 48,954.64 10,302.05

Total result 1,191,660.02 636,190.91


15➜ ❘ Consolidated Interim Financial Statements

for the period from 1 January to 31 March 2013gfT Technologies Aktiengesellschaft, Stuttgart, IfRS (unaudited)

CONSOLIDATED STATEMENT Of COMPREHENSIvE INCOME

Q1–2013

as at 31 March2013gfT Technologies Aktiengesellschaft, Stuttgart, IfRS (unaudited)

CONSOLIDATED BALANCE SHEET

Assets

€ 31/03/2013 31/12/2012 adjusted*

Non-current assets

Intangible assets 681,151.97 737,212.65

goodwill 36,016,229.80 35,949,217.28

Tangible assets 5,168,080.04 3,208,376.73

Securities 3,159,279.07 3,189,680.45

financial assets, accounted for using the equity method 36,688.44 30,191.32

Other assets 448,548.70 410,502.75

Income tax assets 415,212.93 415,212.93

Deferred tax assets 4,610,160.13 4,231,941.18

50,535,351.08 48,172,335.29

Current assets

Trade receivables 51,846,302.97 44,206,480.67

Securities 1,355,150.00 1,316,100.00

Current tax assets 674,120.20 918,103.24

Cash and cash equivalents 25,244,632.52 35,911,786.55

Other financial assets 516,357.40 416,363.25

Other assets 1,883,162.03 1,542,577.73

81,519,725.12 84,311,411.44

132,055,076.20 132,483,746.73


16

Shareholders‘ Equity and Liabilities

€ 31/03/2013 31/12/2012 adjusted*

Shareholders´equity

Share capital 26,325,946.00 26,325,946.00

Capital reserve 42,147,782.15 42,147,782.15

Retained earnings 15,243,349.97 15,243,349.97

Changes in equity not affecting net income

Actuarial gains/losses -1,866,987.43 -1,866,987.43

foreign currency translations 627,538.74 578,943.10

Reserve of market assessment for securities -363,463.95 -363,822.95

Consolidated balance sheet loss -2,684,641.85 -3,827,347.23

79,429,523.63 78,237,863.61

Liabilities

Non-current liabilities

Provisions for pensions 3,760,447.83 3,663,192.40

Other provisions 2,523,800.79 2,934,677.79

Deferred tax liabilities 437,485.76 593,418.42

6,721,734.38 7,191,288.61

Current liabilities

Other provisions 16,248,872.51 18,089,885.88

Income tax liabilities 1,350,591.65 752,481.50

financial liabilities 873,399.08 0.00

Trade payables 18,046,298.02 19,834,818.88

Other financial liabilities 332,215.02 685,418.71

Other liabilities 9,052,441.91 7,691,989.54

45,903,818.19 47,054,594.51

132,055,076.20 132,483,746.73



Q1–2013

as at 31 March 2013gfT Technologies Aktiengesellschaft, Stuttgart, IfRS (unaudited)

CONSOLIDATED STATEMENT Of CHANgES IN EQUITY

18

€ Subscribed

Capital

Capital

reserve

Retained

earnings

Other result Consolidated

balance sheet

loss

Total

equity

Other

retained

earnings

Foreign

currency

translations

Market

assessment

for securities

Actuarial

gains/losses

As at 1/1/2012 26,325,946.00 42,147,782.15 12,743,349.95 728,294.52 -615,885.24 0.00 -5,713,702.92 75,615,784.46

Retroactive adjustment acc. to IAS 19R -698,987.45 -698,987.45

Adjusted amount as at 1/1/2012 26,325,946.00 42,147,782.15 12,743,349.95 728,294.52 -615,885.24 -698,987.45 -5,713,702.92 74,916,797.01


Total income and expenses for the period 1/1-31/3/2012 42,574.27 259,727.78 625,888.86* 928,190.91

As at 31/3/2012 26,325,946.00 42,147,782.15 12,743,349.95 770,868.79 -356,157.46 -990,987.45 -5,087,814.06 75,552,987.92

As at 1/1/2013 26,325,946.00 42,147,782.15 15,243,349.97 578,943.10 -363,822.95 -1,866,987.43 -3,827,347.23 78,237,863.61

Total income and expenses for the period 1/1-31/3/2013 48,595.64 359.00 0.00 1,142,705.38* 1,191,660.02

As at 31/3/2013 26,325,946.00 42,147,782.15 15,243,349.97 627,538.74 -363,463.95 -1,866,987.43 -2,684,641.85 79,429,523.63

* net income for the period


€ Subscribed

Capital

Capital

reserve

Retained

earnings

Other result Consolidated

balance sheet

loss

Total

equity

Other

retained

earnings

Foreign

currency

translations

Market

assessment

for securities

Actuarial

gains/losses

As at 1/1/2012 26,325,946.00 42,147,782.15 12,743,349.95 728,294.52 -615,885.24 0.00 -5,713,702.92 75,615,784.46


Adjusted amount as at 1/1/2012 26,325,946.00 42,147,782.15 12,743,349.95 728,294.52 -615,885.24 -698,987.45 -5,713,702.92 74,916,797.01


Total income and expenses for the period 1/1-31/3/2012 42,574.27 259,727.78 625,888.86* 928,190.91

As at 31/3/2012 26,325,946.00 42,147,782.15 12,743,349.95 770,868.79 -356,157.46 -990,987.45 -5,087,814.06 75,552,987.92

As at 1/1/2013 26,325,946.00 42,147,782.15 15,243,349.97 578,943.10 -363,822.95 -1,866,987.43 -3,827,347.23 78,237,863.61

Total income and expenses for the period 1/1-31/3/2013 48,595.64 359.00 0.00 1,142,705.38* 1,191,660.02

As at 31/3/2013 26,325,946.00 42,147,782.15 15,243,349.97 627,538.74 -363,463.95 -1,866,987.43 -2,684,641.85 79,429,523.63

* net income for the period

Q1–2013

for the period from 1 January to 31 March 2013gfT Technologies Aktiengesellschaft, Stuttgart (unaudited)

CONSOLIDATED CASH fLOW STATEMENT

1st quarter

€ 01/01/– 31/03/2013

01/01/– 31/03/2012

adjusted*

Net income 1,142,705.38 625,888.86

Taxes on income and earnings 404,657.54 643,640.96

Interest income -45,233.47 -130,981.52

Interest paid -8,827.58 -3,087.38

Income taxes paid -275,516.55 -21,295.83

Depreciation on non-current intangible and tangible assets 355,588.92 370,535.90

Changes in provisions -2,198,573.43 463,911.83

Other non-cash expenses/income 156,257.58 -167,300.13

Profit/loss from the disposal of long-term tangible

and intangible assets as well as financial assets 11,726.00 689.00

Changes in trade receivables -7,716,984.41 -4,252,895.79

Changes in other assets -669,880.83 -217,975.71

Changes in trade liabilities and other liabilities -445,882.45 -9,905,046.44

Cash flow from operating activities -9,289,963.30 -12,593,916.26

Cash payments to acquire tangible assets -2,228,559.88 -233,508.04

Cash payments to acquire non-current intangible assets -23,904.27 -37,743.21

Interest received 73,998.34 130,106.95

Cash flow from investing activities -2,178,465.81 -141,144.30

Cash receipts from taking out short-term or long-term loans 873,399.08 91,662.61

Cash flow from financing activities 873,399.08 91,662.61

Effect of exchange rate changes on cash and cash equivalents -72,124.00 15,438.45

Change in cash funds from cash-relevant transactions -10,667,154.03 -12,627,959.50

Cash funds at the beginning of the period 35,911,786.55 32,472,593.37

Cash funds at the end of the period 25,244,632.52 19,844,633.87


20

21➜ ❘ Notes

These unaudited Interim financial Statements of gfT Technologies

Aktiengesellschaft (»gfT Ag«) and its subsidiaries have been prepared

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 2012, 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.

With the exception of the changes stated below, the same accounting

and valuation methods were used in these Interim financial Statements

as in the last Consolidated financial Statements as at 31 December

2012. New or amended standards and interpretations to be applied as

of the beginning of the financial year 2013 had the following impact on

the Interim financial Statements:

As a result of the initial application of IAS 19 (revised), actuarial gains

and losses were recognised in other comprehensive income in accord-

ance with this standard.

Due to retroactive adjustments pursuant to IAS 19R, balance sheet items

as of 31 December 2012 changed as follows:

There were actuarial gains and losses from performance-oriented plans

of €-2,593 thousand less deferred taxes of €726 thousand. There was a

corresponding increase in provisions for pensions of €2,593 thousand to

€3,663 thousand. Deferred tax assets rose by €726 thousand to €4,231

thousand. Within the Consolidated Statement of Comprehensive

Income, the actuarial gains and losses of the 1st quarter of 2012 were

adjusted in other comprehensive income to €-406 thousand less

€114 thousand deferred taxes.

Other comprehensive income was disclosed for the first time according

to IAS 1.82A. The effects mainly concerned the disclosure of actuarial

gains and losses in other comprehen-sive income, which are presented

as non-recyclable.

Other new and revised standards to be adopted as of 1 January 2013

(IAS 7 / IfRS 7 / IfRS 13) have no material impact on the Interim financial

Statements.

In financial year 2012, the structure of the cash flow statement was

amended in accord-ance with IAS 1.41 in order to improve presentation.

The amounts for taxes paid and interest paid and received disclosed in

the footnotes of the previous year were integrated into the calculation

of the cash flow statement. Moreover, the item »Other changes in

equity«, which includes currency translation differences of subsidiar-

ies, was distributed among the changes in assets and liabilities in the

reporting period while currency translation differences in cash and cash

equivalents were disclosed separately.

In drawing up these Interim financial Statements, the Executive Board

made estimations concerning the application and interpretation of ac-

counting regulations. Actual events may differ from these estimations.

future developments and results depend on a number of external fac-

tors involving risks and uncertainties, and are based on current assump-

tions which may prove inaccurate.

The Interim financial Statements and the Interim Management Report as

of 31 March 2013 have neither been audited according to section 317

HgB, nor been reviewed.

as at 31 March 2013gfT Technologies Aktiengesellschaft, Stuttgart, IfRS (unaudited)

NOTES TO THE INTERIM fINANCIAL STATEMENTS

1. Fundamentals for the GFT Group’s Interim Financial Statements · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

Q1–201322

2. Changes to the consolidated group and its associated companies · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

The following changes to the scope of consolidation have occurred since

the Consolidated financial Statements were closed on 31 December

2012:

On 26 february 2013, gfT Technologies Ag, Stuttgart, purchased

Neckarsee 283. vv gmbH. On 21 March 2013, the company’s name

was changed to gfT Beteiligungs-gmbH. Its initial consolidation did

not have any major effect on the group’s assets, financial and earnings

position.

In the course of the Two Brand Strategy, the following changes to com-

pany names were made in January 2013.

a) emagine gmbH was renamed as emagine TPM gmbH as of

23 January 2013.

b) gfT Resource Management gmbH was renamed as emagine gmbH

as of 13 february 2013.

c) gfT flexwork gmbH was renamed as emagine flexwork gmbH

was renamed as of 11 January 2013.

d) gfT Technologies S.A.R.L. was renamed as emagine S.A.R.L. as of

8 January 2013.

The registered office and purpose of the companies did not change as a

result of the name changes.

3. Changes in equity · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

for the changes in equity capital between 1 January 2013 and 31 March

2013, we refer to the Consolidated Statement of Changes in Equity

which is disclosed separately.

As of 31 March 2013, 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 2012). These shares are bearer shares

and all grant equal rights.

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

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

parent company gfT Ag. No dividends have yet been paid in financial

year 2013. At the Annual general Meeting to be held in May 2013,

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 2012.

There were no changes in Authorised Capital or Conditional Capital in

the period 1 January 2013 to 31 March 2013 compared to 31 December

2012. As of 31 March 2013, 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

2013 to 31 March 2013.

4. Segment reporting · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

gfT has identified the two segments gfT Solutions and emagine as

reportable segments. The identification of these segments was mainly

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

ments 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 gfT

Solutions segment. The emagine 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.

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 State-

ments. It also includes disclosures concerning revenue from external

clients for each group of comparable products and services.

23➜ ❘ Notes

The reconciliation of the segment figures to the corresponding figures in

the Consolidated financial Statements is as follows:

€ thsd. 01/01/– 31/03/2013

01/01/– 31/03/2012

Total segment revenue 56,171 58,774

Occasionally occurring revenue 16 3

Elimination of intersegment revenue -677 -1,127

Group revenue 55,510 57,650

Total segment results (EBT) 2,507 2,488

Non-attributed expenses/income of group HQ -629 -2,183

Non-attributed income for elimination of interim results 2 888

Other -332 77

Group result before taxes 1,548 1,270

€ thsd. 31/03/2013 31/03/2012

Total segment assets 118,747 116,224

Non-attributed assets of group HQ 110 115

Securities 4,514 7,679

Assets from income taxes 6,062 5,488

Other 2,622 977

Group assets 132,055 130,483

Total segment liabilities 48,552 51,828

Non-attributed liabilities of group HQ 260 378

Liabilities from income taxes 3,675 2,130

Other 339 979

Group liabilities 52,826 55,315

The reconciliation discloses items which per definition are not compo-

nents 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.

Q1–2013

GFT Solutions emagine Total Eliminations Consolidated

€ thsd. 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

External sales 32,401 30,490 23,093 27,157 55,494 57,647 16 3 55,510 57,650

Inter-segment sales 213 0 464 1,127 677 1,127 -677 -1,127 0 0

Total revenues 32,614 30,490 23,557 28,284 56,171 58,774 -661 -1,124 55,510 57,650

Depreciation -285 -292 -45 -63 -330 -355 -26 -16 -356 -371

Non-cash income/expenditure other than depreciation -164 5 0 0 -164 5 8 162 -156 167

Interest income 29 22 0 2 29 24 66 107 95 131

Interest expenses -30 -40 -4 -5 -34 -45 -22 42 -56 -3

Share of net profits of associated companies

reported according to the equity method 6 3 0 0 6 3 0 0 6 3

Segment result (EBT) 2,406 1,809 101 679 2,507 2,488 -960 -1,218 1,547 1,270

Segment assets 86,144 80,266 32,603 35,958 118,747 116,224 13,308 14,259 132,055 130,483

Investment in associates reported according to the equity method 37 50 0 0 37 50 0 0 37 50

Investment in non-current intangible and tangible assets 321 240 2 23 323 263 1,929 8 2,252 271

Segment liabilities 28,173 27,300 20,179 24,528 48,352 51,828 4,274 3,487 52,626 55,315

gfT Technologies Aktiengesellschaft, Stuttgart, IfRS (unaudited)

SEgMENT REPORT

24

GFT Solutions emagine Total Eliminations Consolidated

€ thsd. 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012 31/03/2013 31/03/2012

External sales 32,401 30,490 23,093 27,157 55,494 57,647 16 3 55,510 57,650

Inter-segment sales 213 0 464 1,127 677 1,127 -677 -1,127 0 0

Total revenues 32,614 30,490 23,557 28,284 56,171 58,774 -661 -1,124 55,510 57,650

Depreciation -285 -292 -45 -63 -330 -355 -26 -16 -356 -371

Non-cash income/expenditure other than depreciation -164 5 0 0 -164 5 8 162 -156 167

Interest income 29 22 0 2 29 24 66 107 95 131

Interest expenses -30 -40 -4 -5 -34 -45 -22 42 -56 -3

Share of net profits of associated companies

reported according to the equity method 6 3 0 0 6 3 0 0 6 3

Segment result (EBT) 2,406 1,809 101 679 2,507 2,488 -960 -1,218 1,547 1,270

Segment assets 86,144 80,266 32,603 35,958 118,747 116,224 13,308 14,259 132,055 130,483

Investment in associates reported according to the equity method 37 50 0 0 37 50 0 0 37 50

Investment in non-current intangible and tangible assets 321 240 2 23 323 263 1,929 8 2,252 271

Segment liabilities 28,173 27,300 20,179 24,528 48,352 51,828 4,274 3,487 52,626 55,315

25➜ ❘ Notes

Q1–2013

The table below shows information according to geographic regions for

the gfT group:

Revenue from sales

to external clients*

Non-current intangible

and tangible assets

€ thsd. 01/01/– 31/03/2013

01/01/– 31/03/2012

31/03/2013 31/03/2012

germany 18,256 21,426 34,882 33,048

UK 11,796 9,301 26 95

Spain 6,913 6,650 1,220 1,161

france 10,985 9,746 87 108

USA 2,012 2,600 5,222 4,981

Switzerland 2,228 3,446 104 394

Other countries 3,320 4,481 325 276

Total 55,510 57,650 41,866 40,063

* 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 gener-ated

€ million 01/01/– 31/03/2013

01/01/– 31/03/2012

01/01/– 31/03/2013

01/01/– 31/03/2012

Client 1 20.13 17.97 gfT Solutions,

emagine

gfT Solutions,

emagine

5. Changes to contingent liabilities · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

As of 31 March 2013, there were no significant changes to contingen-

cies and other financial commitments compared to the Consolidated

financial Statements as at 31 December 2012. As at 31 December 2012,

there were no contingent receivables.

26

27➜ ❘ Notes

6. Investments/disinvestments · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

During the period 1 January to 31 March 2013, the gfT group invested

€24 thousand in intangible assets (1 January to 31 March 2012:

€60 thousand) and €2,228 thousand in tangible assets (1 January to

31 March 2012: €211 thousand). There were no significant disinvest-

ments in the reporting period. Additions to non-current tangible

assets mainly refer to the purchase of an administration building

totalling €1.9 million.

7. Related party disclosures · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

Compared to the disclosures made in the Notes to the Consolidated

financial Statements as at 31 December 2012, there were no significant

transactions. There were also no changes in the composition of related

parties nor in relations with such parties.

8. Events after 31 March 2013 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

There have been no significant events with an effect on the group’s

assets, financial and earnings position in the period up to 7 May 2013.

Stuttgart, 7 May 2013

gfT Technologies Aktiengesellschaft

The Executive Board

Ulrich Dietz Jean-François Bodin Marika Lulay Dr. Jochen Ruetz

Executive Board Executive Board Executive Board Executive Board

(Chairman)

Q1–201328

fURTHER INfORMATION

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

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

[email protected]

fINANCIAL CALENDAR

Annual general Meeting

15 May 2013

Half-Yearly Report as of 30 June 2013

8 August 2013

Quarterly financial Report as of 30 September 2013

7 November 2013

german Equity forum frankfurt/Main

November 2013

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

© Coypright 2013: gfT Technologies Ag, Stuttgart

GFT Quarterly Financial Report Q1/2013

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