interim financial report q1 - gftinterim financial report as of 31 march 2012 q1. first quarter...

interim financial report interim financial report

as of 31 march 2012as of 31 march 2012

Q1

First quarter

01/01/– 31/03/2012

01/01/– 31/03/2011

Change

Income Statement

Revenue €m 57.65 67.30 -14.3%

Earnings before interest, taxes, depreciation

and amortisation (EBITDA) €m 1.51 2.18 -30.7%

Earnings before interest and taxes (EBIT) €m 1.14 1.86 -38.7%

Earnings before taxes (EBT) €m 1.27 2.02 -37.1%

Net income €m 0.63 1.35 -53.3%

Balance sheet

Other non-current assets €m 45.10 29.59 52.4%

Cash, cash equivalents and securities €m 27.52 38.27 -28.1%

Other current assets €m 57.86 62.00 -6.7%

ASSETS €m 130.48 129.86 0.5%

Non-current liabilities €m 8.42 2.18 286.2%

Current liabilities €m 45.52 55.03 -17.3%

Shareholders´ equity €m 76.54 72.65 5.4%

SHAREHOLDERS' EQUITY AND LIABILITIES €m 130.48 129.86 0.5%

Equity ratio % 59 56 5.4%

Cash flow

Cash flow from operating activities €m -12.45 -2.44 410.2%

Cash flow from investing activities €m -0.27 -0.43 -37.2%

Cash flow from financing activities €m 0.09 0.63 -85.7%

Employees

Number of permanent employees (as of 31 March) 1,346 1,307 3.0%

Share

Earnings per share € 0.02 0.05 -53.3%

KEY fIgURES ACCORDINg TO IfRS

Q1–2012

1➜ ❘ Highlights

Despite adverse market conditions, both business divisions

got off to a solid start in the current financial year: in core

operating activities, there was growth in revenue and EBT.

for the current financial year, the Executive Board therefore

confirms the forecast made in the Consolidated financial

Statements 2011 and expects total revenue of €250 million

and earnings before taxes of €12 million in 2012 as a whole.

Consolidated Interim Management Report … 2 | Consolidated Interim financial Statements … 16 | Notes … 23

CONTENTS

Revenue

€ million 2011 2012

Q4 64.51

Q3 66.07

Q2 74.50

Q1 67.30 57.65

272.38 57.65

Earnings before taxes

€ million 2011 2012

Q4 2.00

Q3 3.53

Q2 3.50

Q1 2.02 1.27

11.05 1.27

Q1–2012

Economic environment

Macroeconomic development

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

slight improvement in the global economic outlook in early

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

its World Economic Outlook of April 2012, for example,

the International Monetary fund (IMf) forecasts global

economic growth of 3.5% for the current year – up

0.2 %-points from its January forecast.

According to the IMf, the progress of the global economy

depends to a large extent on finding a solution for the

Euro zone‘s current problems. Prospects in the region

continue to fall short of average growth due to the weak -

ness of countries such as greece, Italy, Spain and Portu-

gal. Although the IMf upgraded its January forecast

somewhat, it still expects gDP in the Euro zone to fall by

0.3 %-points in 2012. Economic output is likely to shrink

by half a percentage point in the first half of the year and

recover somewhat in the second half.

The prospects for germany were also upgraded slightly.

Over the year as a whole, the IMf’s forecast of 0.6%

growth is now twice as much as it was three months ago.

Sector development

The mood of the german Information and Communica-

tion Technology (ICT) sector continued to improve at its

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

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

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

April 2012 by the german federal Association for Informa-

tion Technology, Telecommunications and New Media

(BITKOM e.V.).

72% of all companies surveyed in the ICT sector reported

year-on-year growth in the first quarter. This figure for the

sector as a whole was mirrored by the progress made by

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

software and IT services fared even better – 79% reporting

higher revenues than in the first quarter of 2011.

The upbeat sector mood was also reflected in the industry

association’s business confidence index: both the BITKOM

sector index and the BITKOM Mittelstand index were up

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

points (+12), respectively.

Course of business in the first three months

Although the global economy continued to gain momen-

tum over the past few months, the sense of uncertainty

was still clearly apparent in the early part of 2012. Despite

adverse conditions in the finance sector, both business divi-

sions of the gfT group got off to a solid start in the cur-

rent financial year: in the core business of the Resourcing

segment and the Services segment, total revenue grew

by 11.4% to €57.65 million. This development was also

reflected in an increase in operating earnings before taxes

of 25% to €2.52 million. As a result, gfT achieved an

operating margin before taxes of 4.4% in its seasonally

weakest quarter of the year. The corresponding figure for

2011 as a whole was 4.1%.

Key earnings figures for the first quarter of 2011 still

included lower-margin activities with a major client in Third

Party Management with revenue of €15.64 million. These

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

direct comparison of first quarter figures shows a decline in

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

the first three months of 2012. Moreover, the first quarter

of 2012 was burdened by one-off expenditure of €1.25

million for our international innovation initiative CODE_n.

As this focused in 2012 on our CeBIT trade fair presence,

these non-recurring costs were only expensed in the re-

porting period. A direct comparison of first quarter figures

Consolidated Interim Management Report of gfT Technologies Ag as of 31 March 2012

Business environment

2

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

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

months of 2012.

In terms of revenue, the Resourcing division once again

benefited from strong demand for freelance IT specialists

and engineers in the manufacturing industry and contin-

ued the successful development of its Resource Manage-

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

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

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

However, this positive development in the field of Resource

Management failed to compensate for revenue losses in

Third Party Management. As a consequence, revenue in

the Resourcing segment fell by 29% in the period under

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

mentioned major client, the segment achieved growth of

7% in the first quarter.

Despite further cautious demand from our clients in the

corporate and investment banking sector, the Services divi-

sion succeeded in raising its high revenue level: in the first

three months of 2012, the segment generated revenue

of €30.49 million – an increase of 6% over the previous

year (€28.89 million). This growth was largely due to the

acquisitions made in Switzerland and the USA during 2011

which were consolidated for the first time during the first

quarter. Stable demand for outsourcing services and smart

IT solutions to meet regulatory demands also had a posi-

tive impact on revenue growth.

Compared to the same period last year, earnings before

taxes fell by 37% to €1.27 million (prev. year: €2.02 mil-

lion) for the reasons stated above. However, the one-off

costs for the CODE_n innovation initiative will not have

any significant impact on EBT over the remaining quarters.

Earnings of the two operating divisions displayed growth

in the reporting period: the Services division raised its

segment result by 26% and contributed the largest share

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

revenue, positive margin effects from new acquisitions and

a high level of capacity utilisation in both nearshore and

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

had a positive impact on segment earnings.

Despite a significant decline in revenue, the Resourcing

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

result to €0.68 million (prev. year: €0.65 million). In

add ition to successful measures aimed at raising efficiency,

the main reason was a shift in revenue volumes in favour

of the higher-margin Resource Management business.

Against the backdrop of diverging growth rates in its

various client sectors, the gfT group expects moderate

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

An increasing propensity to invest in the finance sector

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

drive further growth. In particular, demand from clients in

the field of corporate and investment banking will boost

revenue in the Services division. The Resourcing division

will continue to benefit from strong demand for freelance

specialists in the industrial sector. The Executive Board

therefore confirms the forecast it made in the Consoli-

dated financial Statements 2011 and continues to expect

total revenue of €250 million and earnings before taxes

of €12 million in 2012.

gfT share

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

germany, both the DAX and TecDAX indices were already

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

DAX index broke through the 6,000-point barrier in the

first trading days of the year. This development was driven

mainly by positive economic data from the USA, China and

germany. The start of the reporting season for US compa-

nies also encouraged this upbeat mood. In germany, the

IfO business confidence index for february was better than

expected. In view of a further improvement in the global

economic environment, the upward trend on the stock

markets continued throughout the quarter. The European

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

enced a further surge in liquidity. The DAX continued to

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

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

at 6,947 points and thus achieved growth of 14% since

the year started.

3➜ ❘ Consolidated Interim Management Report

Q1–2012

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

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

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

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

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

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

the quarter at 790 points.

The gfT share got off to a good start in 2012. After

closing 2011 at €2.72, the share had already climbed

to its first year-high of €3.05 by 11 January. Buoyed by

the general upbeat mood of the market, the gfT share

continued to make encouraging progress over the quarter

and cemented its position above the €3.00 threshold. Due

to a few high sales orders, however, there were several

temporary price markdowns in february and March which

were offset slightly by the announcement of good com-

pany results in March. Thanks to the consistently positive

market environment, the share soon climbed back to the

€3.00 mark. At the end of the reporting period, the gfT

share was quoted at €3.10 – up 13% on its year-opening

price of €2.75.

following the publication of key figures for financial year

2011, the analysts of LBBW and Warburg Research set an

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

their »buy« recommendation for the gfT share. Hauck

und Aufhäuser raised their upside target from €4.20 to

€4.70 and also recommended buying the share. Analysts

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

raised their target from €3.10 to €4.40.

Shareholder structure

There were no significant changes in the shareholder struc-

ture of gfT Technologies Ag in the period under review.

Company founder Ulrich Dietz continues to hold 28.08%

of shares. Maria Dietz owns 9.68% of voting rights, while

Dr Markus Kerber, a former member of gfT’s Supervisory

Board, holds 5.00%. The free float portion amounts to

57.24% of shares.

4

Ulrich Dietz 28.08%

Maria Dietz 9.68%

Dr. Markus Kerber 5.00%

free float 57.24%

Shareholder structure

Information on the GFT share

Q1 2012 Q1 2011

Year-opening quotation (XETRA)* €2.75 €4.33

Closing quotation on 30 March (XETRA)* €3.10 €4.10

Percentage change since year-opening +13% -5%

Highest price (XETRA)*

€3.20 (02.03.2012,

13.03.–16.03.2012,

20.03.–21.03.2012)

€4.86 (18.01.2011)

Lowest price (XETRA)* €2.75 (02.01.2012)

€3.62 (15.03.2011)

Market capitalisation as of 30 March €81.61 million €107.94 million

Earnings per share from

continued operations

€0.02 €0.05

Average daily trading volume in shares

(XETRA and frankfurt)*

15,266 42,217

* 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


Indexed share price performance

100

120

110

115

105

gfT share

Technology All Share Performance Index

2 January 2012

€2.75 = 100%

30 March 2012

€3.10

Q1–20126

In the first three months of 2012, the gfT group gener-

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

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

and resulted from the complete reduction in business with

a major Resourcing division client from the finance sector

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

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

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

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

Revenue by segment

following the decline in revenue of the Resourcing division,

there was a shift in the breakdown of revenue by segment

in favour of the Services division. Compared to 43% in the

previous year, the Services segment accounted for 53% of

the gfT group’s total revenue in the period under review.

There was a corresponding fall in the proportion of the

Resourcing division to 47% (prev. year: 57%). Of this total,

the declining Third Party Management business accounted

for 9% (prev. year: 27%) and the Resource Management

business for 38% (prev. year: 30%).

In the period under review, the services segment gener-

ated revenue of €30.49 million and thus raised the

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

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

effects of acquisitions made in 2011 in Switzerland and

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

first quarter of 2012. Stable demand from the finance

sector for IT solutions to implement regulatory compliance

requirements, as well as for core banking solutions and

outsourcing services, had a positive impact on the develop-

ment of revenue in this segment.

The resourcing division continued its successful devel-

opment of the past financial year but was unable to

compensate for the planned revenue loss from a major

client. In the first three months of the current financial

year, segment revenue amounted to €27.16 million – 29%

less than in the same period last year (€38.41 million). This

decline in revenue was mainly reflected in the segment’s

lower-margin Third Party Management business, whose

contribution fell to €5.23 million (prev. year: €17.87 mil-

lion). The higher-margin Resource Management business

developed on target and was able to benefit from strong

demand for freelance IT specialists. Revenue in this division

rose by 7% to €21.93 million (prev. year: €20.54 million).

Development of revenue

Revenue by segment

Q1 2012 € million

Resourcing 47% 27.16

Services 53% 30.49

Revenue by country

Q1 2012 € million

germany 37% 21.43

france 17% 9.75

UK 16% 9.30

Spain 12% 6.65

Switzerland 6% 3.45

USA 4% 2.60

Other countries 8% 4.47

Revenue by country

Germany contributed €21.43 million to total revenue

(prev. year: €36.72 million) and thus remains the gfT

group’s largest sales market. The year-on-year fall in

revenue of 42% was due to a reduction in revenue in the

field of Third Party Management. Strong demand for IT

experts and engineers in the industrial sector, however,

boosted revenue in the company’s Resource Management

business. The Services segment in germany benefited from

stable long-term projects with clients in the finance sec-

tor. Due to the positive development of revenue in other

countries, germany’s share of total revenue fell to 37%

(prev. year: 55%).

With strong growth of 42%, france accounted for

revenue of €9.75 million (prev. year: €6.88 million) and es-

tablished itself for the first time as the gfT group’s second

largest sales market with 17% of total revenue (prev. year:

10%). This leap in revenue resulted mainly from industrial

clients in the Resourcing division, in which existing projects

were expanded and new clients added. During the period

under review, there was a marked shift in activities towards

the higher-margin Resource Management business.

In the UK, the difficult market conditions in the finance

sector observed in late 2011 continued to impact revenue

in the first quarter of 2012. Although developments were

more positive than originally assumed at the beginning of

the year, revenue of €9.30 million fell short of the previous

year’s high level (€9.91 million). In the period under review,

sales to UK clients accounted for 16% of total revenue

(prev. year: 15%).

Despite adverse market conditions, there was a slight

increase in the traditionally high level of revenue generated

with clients in spain. Stable long-term projects and con-

sistently strong demand from European financial institutes

for outsourcing services helped fuel this growth. A total

of €6.65 million (prev. year: €6.51 million) was gener-

ated with clients on the Spanish market in the first three

months of the year, accounting for 12% of total revenue

(prev. year: 10%).

In switzerland, the acquisition of Asymo Ag and the

expansion of project volumes in both business divisions

helped boost revenue. With revenue of €3.45 million

in the period under review (prev. year: €2.17 million),

year-on-year growth amounted to 59%. As a result, the

country’s share of total revenue increased from 3% last

year to 6%.

In the Usa, organic growth in corporate and investment

banking and the first-time consolidation of the acquired

consulting division of g2 Systems led to revenue growth

of 61% to €2.60 million (prev. year: €1.61 million). This re-

sulted in an increase in the country’s share of total revenue

to 4% (prev. year: 2%).

The proportion of total revenue generated by clients in

»other countries«, including Brazil, the Benelux states

and Italy, amounted to 8% (prev. year: 5%). Projects with

clients in these countries resulted in revenue of €4.47

million, up 28% on the same period last year (€3.50 mil-

lion). The main reason was an expansion of the company’s

service project business in Italy, Belgium and Brazil.


Q1–2012

Revenue by industry

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

decline in the importance of the financial services indus-

try (prev. year: 66%). However, it continues to represent

the most important sector for the gfT group. The planned

reduction in revenue with a major client in the Resourcing

division had a dampening effect on revenue in the period

under review. In the first three months of 2012, projects

with banks and insurance companies accounted for total

revenue of €34.35 million (prev. year: €44.60 million).

Revenue with clients in the postal and logistics industry

fell year on year by 53% to €2.22 million (prev. year: €4.75

million) and thus accounted for 4% of total revenue (prev.

year: 7%).

The gfT group generated 36% of total revenue with

clients in the »others« category, which also includes

clients from the manufacturing industry (prev. year: 27%).

Year-on-year revenue growth of 17% was mainly driven by

strong demand for freelance IT experts and engineers. In

the first three months of 2012, the gfT group generated

revenue of €21.08 million with clients in these sectors

(prev. year: €17.95 million).

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

of the gfT group amounted to €1.27 million and thus

fell well short of the prior-year figure (€2.02 million). The

operating margin before taxes decreased by 0.8 %-points,

from 3.0% in the previous year to 2.2%. All in all, earn-

ings in the first quarter of 2012 were above expectations

as costs included an amount of €1.25 million in marketing

expenditure for the CODE_n innovation initiative and

CeBIT fair presence.

When considering the group’s business divisions, the

Services segment in particular made a far stronger

contribution to total earnings thanks to effects from

new acquisitions in 2011 and an improved order position

compared with the two preceding quarters. Earnings in

the Resourcing segment were slightly up on the previous

year.

As of 31 March 2012, earnings before interest and

taxes (eBit) amounted to €1.14 million and were thus

€0.72 million below the prior-year figure (€1.86 million).

As a consequence, earnings before interest, taxes and

depreciation/amortisation (eBitDa) on property,

plant and equipment and intangible assets were also

down on the previous year at €1.51 million (prev. year:

€2.18 million).

After the first three months of 2012, the quarterly net

income of the gfT group amounted to €0.63 million, cor-

responding to a decline of €0.72 million in earnings after

taxes (prev. year: €1.35 million). The calculated tax ratio

rose from 33% in the previous year to 51% due to an

unbalanced distribution of earnings between the individual

national subsidiaries in the first quarter.

earnings per share deteriorated by €0.03 in the period

under review to €0.02 per share (prev. year: €0.05

per share). These figures are based on an average of

26,325,946 outstanding shares.

Earnings position

8

Revenue by industry

Q1 2012 € million

financial service providers 60% 34.35

Post/logistics 4% 2.22

Others 36% 21.08

Group earnings position by segment

Despite the ongoing volatility of its market environment,

pre-tax earnings in the services segment amounted to

€1.81 million in the first quarter of 2012 and were thus

26% above the prior-year figure (€1.44 million). This

improvement in earnings was largely due to the new

acquisitions made in June and October 2011; comparable

figures were not included in earnings figures for the first

three months of 2011. Compared to the first quarter of

2011, the operating margin rose by 0.9 %-points to 5.9%

(prev. year: 5.0%).

In the period under review, earnings in the resourcing

segment reached €0.68 million and were thus 4% above

the prior-year figure (€0.65 million) – despite consistently

adverse market conditions. The operating margin improved

by 0.8 %-points to 2.5% (prev. year: 1.7%). This was

largely due to reduced revenue in the segment’s lower-

margin Third Party Management business.

In spite of the significant reduction in revenue, earnings

from Third Party Management activities were only slightly

down on the previous year at around break-even (prev.

year: €0.01 million). In the Resource Management busi-

ness, earnings rose by 5% to €0.68 million (prev. year:

€0.64 million).

The »others« category comprises balance sheet effects,

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

consolidation amounts which cannot be directly charged

to either of the two aforementioned divisions. Due in

particular to expenses recognised in connection with the

CODE_n project and CeBIT fair presence, pre-tax earnings

in the first quarter were well below the prior-year figure at

€-1.22 million (prev. year: €-0.07 million).

Earnings position by income and expense items

As of 31 March 2012, other operating income amount-

ed to €0.98 million and was thus €0.63 million higher than

in the previous year (€0.35 million). This increase in other

operating income was mainly due to income from the

liquidation of provisions amounting to €0.48 million and

write-ups on marketable securities of €0.19 million. The

remaining changes resulted from other operating income,

benefits in kind and income from the derecognition of

liabilities.

As of 31 March 2012, the cost of materials – mainly com-

prising the purchase of external manpower – amounted

to €27.47 million and was thus well below the prior-year

figure (€39.25 million). This decline resulted from the

significant reduction in Third Party Management revenue

and the respective decrease in the purchase of external

manpower. As a proportion of revenue, the cost of materi-

als consequently fell by 10 %-points year on year to 48%

(prev. year: 58%).


Group earnings position by segment

€ million Q1/11 Q1/12 Q1/11 Q1/12 Q1/11 Q1/12 Q1/11 Q1/12

1.44 1.81 0.65 0.68 -0.07 -1.22 2.02 1.27

Services Resourcing Others Total

Q1–2012

personnel expenses rose by €2.18 million to €23.23 mil-

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

sonnel expenses was mainly due to the rise in headcount

following new acquisitions and salary increases granted

in 2011. As a proportion of revenue, personnel expenses

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

This was a result of the increased revenue share of the

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

year: 43%).

Depreciation of intangible and tangible assets

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

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

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

operating profits.

other operating expenses increased to €6.43 million in

the first three months of the financial year, correspond-

ing to a year-on-year increase of 26% (prev. year: €5.10

million). The cost increases were mainly attributable to

higher operating, administrative and selling expenses,

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

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

costs attributable to CODE_n. This item also includes other

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

exchange rate losses.

As of 31 March 2012, income taxes amounted to

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

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

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

bution of earnings between the national subsidiaries.

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

and securities amounted to €27.52 million and were

thus €12.16 million below the corresponding figure at the

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

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

€12.63 million to €19.84 million following payments to

external staff and company acquisitions in the second and

fourth quarters of 2011.

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

receivables increased to €55.29 million. This rise was

largely due to overdue receivables from a major client. As

of 31 March 2012, trade payables amounted to €17.91

million and were thus well below the corresponding figure

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

resulted mainly from the significant reduction in Third Party

Management revenue and the related purchase of external

staff.

following a very favourable working capital ratio at year-

end 2011, cash flows from operating activities were

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

Compared to the same period last year, the typical increase

in working capital during the first quarter was stronger

in the first quarter of 2012 due to the deterioration in

customer payment behaviour.

At €-0.27 million, cash flows from investing activities

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

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

expenditure, including IT procurements.

As of 31 March 2012, cash flows from financing

ac tiv ities totalled €0.09 million. This amount resulted

exclusively from a foreign subsidiary’s short-term use of

credit lines. In the previous year, the corresponding figure

amounted to €0.63 million.

financial position

10

Asset position

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

gfT group was down €7.80 million at €130.48 million. At

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

million.

On the asset side, there was a significant change in

current assets and in particular the items cash and cash

equivalents, and trade receivables. non-current assets,

however, were largely unchanged. Compared to 31 De-

cember 2011, they fell by €0.21 million to €51.36 million,

mainly as a result of a reduction in tax claims.

As of 31 March 2012, current assets were well below

their year-end level (€86.71 million) and fell to €79.12

million. Within this item, liquid funds decreased strongly by

€12.63 million to €19.84 million, while trade receivables

increased by €4.33 million to €55.29 million.

On the liabilities side, the only notable changes were

among the current liabilities; equity was slightly up on the

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

to €76.54 million and was thus €0.93 million above

the corresponding figure on the balance sheet date of

31 December 2011. This improvement was largely due to a

reduction in the balance sheet loss to €-5.09 million. As a

result, the equity ratio rose to 59%, compared to 55% at

the end of 2011.

On the liabilities side, there was little change in non-

current liabilities which amounted to €8.42 million as of

the balance sheet date; at year-end 2011, the correspond-

ing figure was €8.59 million.


Group balance sheet structure

ASSETS € million 31/12/2011 31/03/2012

Cash, cash equivalents

and securities 39.68 27.52

Other current assets 53.25 57.86

Other non-current assets 45.35 45.10

138.28 130.48

31/03/2012 31/12/2011 EQUITY & LIABILITIES € million

45.52 54.07 Current liabilities

8.42 8.59 Non-current liabilities

76.54 75.62 Equity capital

130.48 138.28

Q1–2012

There was a significant decline in current liabilities

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

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

reduction in trade payables to €17.91 million, compared

with €28.63 million as of 31 December 2011. In contrast,

other provisions rose to €17.52 million (31 December

2011: €17.07 million) and other liabilities to €7.74 million

(31 December 2011: €6.45 million).

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

solid balance sheet structures – improved to 149% as of

31 March 2012 (31 December 2011: 147%).

Employees

As of 31 March 2012, the gfT group employed a total of

1,346 people and thus 3% or 39 persons more than on

31 March 2011. The number of employees is calculated on

the basis of full-time staff, whereby part-time staff are in-

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

in headcount in comparison to the preceding quarters. On

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

31 December 2011 1,337.

At the end of the reporting period, a total of 1,199 people

were employed in the services division, corresponding to

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

over 31 March 2011 was mainly due to the acquisition of

Asymo Ag in Switzerland and the consulting division of

g2 Systems in the USA. There was strong headcount

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

crease in the number of staff employed in Spain, compared

to the previous year.

Headcount in the resourcing division remained virtually

unchanged – falling from 102 on the same date last year

to 101 employees as of 31 March 2012.

The »others« category comprises 7 employees more than

in the previous year. The holding company thus employed

46 people on the reporting date.

Employees by division as of 31 March

2012 2011

Services 1,199 1,166

Resourcing 101 102

Others 46 39

Total 1,346 1,307

The number of people employed in Germany as of

31 March 2012 amounted to 275. This was 2% or 7 per-

sons below the prior-year figure. staff employed outside

Germany rose by 46 to a total of 1,071 employees (prev.

year: 1,025). As a result, the proportion of total staff

employed outside germany now amounts to 80% (prev.

year: 78%).

The average number of freelancers employed fell strongly

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

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

Management.

Employees by country as of 31 March

2012 2011

germany 275 282

Brazil 149 158

france 17 18

UK 31 29

Switzerland 49 28

Spain 807 789

USA 18 3

Total 1,346 1,307

foreign share in % 80 78

12

Research and development expenses of the gfT group in

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

group thus almost doubled its R&D expenditure compared

to 31 March 2011 (€0.52 million).

These expenses resulted mainly from R&D activities in con-

nection with the following strategic initiatives:

a-touch: in the first quarter of 2012, gfT continued to

develop the IT-aided solution for advisors in the field of

private banking and wealth management. The applica-

tion provides system-supported implementation of all

compliance requirements. Thanks to its additional security

components, it is also suitable for use on mobile devices.

sap competence centre: gfT develops suitable applica-

tion possibilities to help banks convert their systems to SAP

software.

mobile finance: gfT intensified its R&D activities in the

field of platform-independent mobile applications for

financial service providers; for example with the expansion

of its Mobile finance Competence Centre founded in

2009.

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

field of applied innovation management in its internal

»Applied Technologies group«.

In order to ensure consistently high quality in its global

development efforts, gfT continued to optimise software

development processes in accordance with the inter-

national CMMI© (Capability Maturity Model Integration)

standard.

No events occurred after the balance sheet date as at

31 March 2012 that are of major significance to gfT.

Opportunity and risk report

In the first three months of 2012, there were no material

changes with regard to the comprehensive discussion

of opportunities and risks provided in the Management

Report accompanying the Consolidated financial State-

ments for 2011. The risk position of the gfT group is thus

unchanged.

forecast report

Macroeconomic development

Although the prospects for the global economy are

somewhat more optimistic than at the end of last year, the

International Monetary fund (IMf) has not yet fully lifted

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

further crisis is still very present. The IMf points, for exam-

ple, to the geopolitical unrest in Iran which may push the

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

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

the financial markets. finally, the IMf believes that these

problems may be exacerbated by the Euro zone’s sovereign

debt crisis.

In its World Economic Outlook of April 2012, the IMf

predicts growth of 4.1% for 2013 – 0.6 %-points above its

forecast for the current year. The outlook for the Euro zone

is also somewhat more optimistic for 2013 than for 2012.

following a slight recession this year, the IMf forecasts

growth of 0.6% for 2013. The IMf sees signs of improve-

ment especially in such crisis-hit countries as Spain and

Italy, with positive consequences for the entire Euro zone.

However, these latest improvements are highly fragile,

warn the IMf’s experts. Unemployment in the Euro zone is

also expected to remain high for some time.

Research and development Subsequent events


Q1–2012

The economists upheld their forecast for germany made

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

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

current year.

Sector development

The prospects for germany’s Information and Commu-

nication Technology (ICT) sector remain favourable. In its

forecast published in March 2012, the german federal

Association for Information Technology, Telecommunica-

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

billion for 2012, representing growth of 4.5%. The IT

Services segment alone is expected to generate revenue of

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

The results of a BITKOM survey of sector mood in April

2012 confirm these forecasts. 78% of all companies

interviewed expect increasing revenues in 2012 compared

with the previous year – among suppliers of software and

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

The sector mood is equally upbeat with regard to man-

power requirements. Some 74% of mid-size IT companies

plan to hire new staff in 2012. BITKOM expects that the

sector as a whole will create 5,000 to 6,000 additional jobs

this year. 63% of companies are suffering from a shortage

of skilled workers.

Technologies such as cloud computing, the growing spread

of tablet computers and smartphones, and the related

mobile apps, are expected to add further momentum

to the sector’s development. There is currently growing

demand from both companies and private consumers for

new devices, applications and services.

Revenue and earnings forecast

The gfT group sees growth potential in various sectors for

its financial year 2012 and will continue to work on ways

to exploit this potential. Business will be dominated by the

diverging growth rates in those markets of importance

for gfT. Whereas the first half of the year is still likely to

be influenced by cautious capital spending in the finance

sector – especially in the field of corporate and investment

banking – growth is expected to be driven by the financial

services industry and the industrial sector in the second

half of the year.

With its international network of specialists, the

Resourcing division is well placed to serve the growing

need of many companies for skilled and flexible IT experts

and engineers. Strong growth is expected above all in the

field of Resource Management in france and germany

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

sion of projects with existing clients, significant revenue is

likely to be generated with new customers. Effective cost

management and a greater focus on the higher-margin

Resource Management business – already started in 2011

– will also have a positive impact on segment earnings. The

completed reduction of business with a major client in the

field of Third Party Management will lead to a decrease in

revenue of €48 million in financial year 2012. Due to the

low margins of this business, however, this will not have a

noticeable impact on EBT.

14

As of the third quarter of 2012, the Services division is

expected to benefit from the finance sector’s increased

propensity to invest. Demand for outsourcing services,

core banking solutions and IT solutions to implement

compliance regulations will remain strong. At the same

time, banks are likely to invest more in core banking and

customer management systems, while demand for smart IT

solutions in the field of corporate and investment banking

is also expected to rise. In 2012, the segment aims to place

greater emphasis on targeting growth markets, such as

mobile finance applications.

With its focus on the finance sector and selected growth

markets, as well as a range of products and services strictly

aligned with the needs of its clients, the gfT group has

laid a solid foundation for sustainable growth. We will con-

tinue to work on exploiting the synergy potential created

by our two business divisions and developing our expertise

in future-oriented topics. Amidst growing signs of stability

in the finance sector and consistently strong demand in the

manufacturing industry, the Executive Board of gfT can

confirm the forecast it made in the Consolidated financial

Statements 2011: for 2012 as a whole, we expect revenue

of €250 million and pre-tax earnings of €12 million.


Stuttgart, 7 May 2012

gfT Technologies Aktiengesellschaft

The Executive Board

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

Executive Board (Chairman) Executive Board Executive Board Executive Board

Q1–2012

for the period from 1 January to 31 March 2012 gfT Technologies Aktiengesellschaft, Stuttgart

CONSOLIDATED STATEMENT Of COMPREHENSIVE INCOME

Partial Statement Affecting Net Income: Consolidated Income Statement

First quarter

€ 01/01/– 31/03/2012

01/01/– 31/03/2011

Revenue 57,649,528.39 67,302,679.21

Other operating income 984,160.19 346,980.23

58,633,688.58 67,649,659.44

Cost of materials:

a) expenses for raw materials and supplies

and for purchased goods 74.25 4,600.74

b) Costs of purchased services 27,469,518.61 39,248,133.82

27,469,592.86 39,252,734.56

Personnel expenses:

a) Salaries and wages 19,604,764.24 17,463,594.29

b) Social security and expenditures for retirement pensions 3,624,847.00 3,590,070.70

23,229,611.24 21,053,664.99

Depreciation on non-current intangible

assets and of tangible assets 370,535.90 313,422.50

Other operating expenses 6,425,400.28 5,100,093.93

Result from operating activities 1,138,548.30 1,929,743.46

Other interest and similar income 131,116.57 159,206.70

Income from investments 0.00 0.00

Profit share from associates 2,949.94 -2,817.02

Depreciation on securities 0.00 63,874.05

Interest and similar expenses 3,084.99 2,030.40

financial result 130,981.52 90,485.23

Earnings before taxes 1,269,529.82 2,020,228.69

Taxes on income and earnings 643,640.96 667,223.22

Net income 625,888.86 1,353,005.47

– attributable to non-controlling equity holders 0.00 0.00

– attributable to equity holders of the parent 625,888.86 1,353,005.47

Net earnings per share – undiluted 0.02 0.05

Net earnings per share – diluted 0.02 0.05

16

Partial Statement Not Affecting Net Income: Consolidated Income Statement

First quarter

€ 01/01/– 31/03/2012

01/01/– 31/03/2011

Net income 625,888.86 1,353,005.47

financial assets available for sale (securities):

– Change of fair value recognised in

equity during the financial year 259,727.78 153,800.00

– Reclassification amounts to the Income Statement 0.00 0.00

259,727.78 153,800.00

Exchange differences on translating foreign operations:

– Profits/losses during the financial year 42,574.27 -131,475.01

– Reclassification amounts to the Income Statement 0.00 0.00

42,574.27 -131,475.01

Income taxes on components of other result 0.00 0.00

Other result 302,302.05 22,324.99

Total result 928,190.91 1,375,330.46

– thereof attributable to non-controlling shareholders 0.00 0.00

– thereof attributable to shareholders of parent company 928,190.91 1,375,330.46

17➜ ❘ Consolidated Interim Financial Statements

Q1–2012

as at 31 March 2012gfT Technologies Aktiengesellschaft, Stuttgart

CONSOLIDATED BALANCE SHEET

Assets

€ 31/03/2012 31/12/2011

Non-current assets

Intangible assets

Licences, industrial property rights

and similar rights 886,965.91 945,085.00

goodwill 36,359,510.32 36,399,830.18

37,246,476.23 37,344,915.18

Tangible assets

Other equipment, office and factory equipment 2,706,975.42 2,752,150.63

Construction on foreign property 59,662.54 54,780.08

2,766,637.96 2,806,930.71

financial assets

Securities 6,262,849.07 6,225,839.07

financial assets, accounted for using the equity method 50,306.04 47,356.10

Investments 0.00 0.00

6,313,155.11 6,273,195.17

Other financial assets 413,329.46 433,155.26

Current tax assets 444,056.51 514,567.53

Deferred tax assets 4,177,208.03 4,201,543.60

51,360,863.30 51,574,307.45

Current assets

Trade receivables 55,287,592.97 50,962,108.83

Securities 1,415,750.00 982,520.00

Current tax assets 212,458.99 582,758.96

Cash and cash equivalents 19,844,633.87 32,472,593.37

Other financial assets 211,118.27 402,304.83

Other assets 2,150,625.77 1,305,256.69

79,122,179.87 86,707,542.68

130,483,043.17 138,281,850.13

18

Shareholders‘ Equity and Liabilities

€ 31/03/2012 31/12/2011

Shareholders‘ equity

Equity attributable to equity holders

of the parent

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

– Conditional Capital €7,500,000.00

(previous year: €7,500,000.00 )

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

Retained earnings

Other retained earnings 12,743,349.97 12,743,349.97

Changes in equity not affecting net income

foreign currency translations 770,868.79 728,294.52

Reserve of market assessment for securities -356,157.46 -615,885.24

Consolidated balance sheet loss -5,087,814.06 -5,713,702.92

76,543,975.39 75,615,784.48

Interests of non-controlling equity holders 0.00 0.00

76,543,975.39 75,615,784.48

Liabilities

Non-current liabilities

Provisions for pensions 781,718.38 769,718.38

Other provisions 7,227,434.68 7,235,803.15

Other liabilities 0.00 0.00

Deferred tax liabilities 414,869.09 585,985.06

8,424,022.15 8,591,506.59

Current liabilities

Other provisions 17,523,304.35 17,067,647.30

Current income tax liabilities 1,715,542.12 1,333,795.95

financial liabilities 91,662.61 0.00

Trade payables 17,910,940.58 28,632,433.78

Other financial liabilities 532,641.53 588,991.71

Other liabilities 7,740,954.44 6,451,690.32

45,515,045.63 54,074,559.06

130,483,043.17 138,281,850.13


Q1–2012


CONSOLIDATED STATEMENT Of CHANgES IN EQUITY

€ Subscribed

capital

Capital

reserve

Retained

earnings

Changes in equity not affecting

results

Consolidated

balance sheet

loss

Equity

attributable to

equity holders

of the parent

Non-controlling

equity holders

Total

share capital

Other

retained

earnings

Foreign

currency

translations

Market

assessment

for securities

As at 01/01/2011 26,325,946.00 42,147,782.15 10,243,349.97 535,311.01 -427,800.00 -7,554,412.13 71,270,177.00 0.00 71,270,177.00

Total income and expenses for the period 01/01/–31/03/2011 -131,475.01 153,800.00 1,353,005.47 1,375,330.46 0.00 1,375,330.46

As at 31/03/2011 26,325,946.00 42,147,782.15 10,243,349.97 403,836.00 -274,000.00 -6,201,406.66 72,645,507.46 0.00 72,645,507.46

Dividend payment June 2011 -3,948,891.90 -3,948,891.90 0.00 -3,948,891.90

Total income and expenses for the financial year 01/01/–31/12/2011 192,983.51 -188,085.24 8,289,601.11 8,294,499.38 0.00 8,294,499.38

Allocations to retained earnings 2011

– to other retained earnings 2,500,000.00 -2,500,000.00 0.00 0.00 0.00

As at 31/12/2011 26,325,946.00 42,147,782.15 12,743,349.97 728,294.52 -615,885.24 -5,713,702.92 75,615,784.48 0.00 75,615,784.48

Total income and expenses for the period 01/01/–31/03/2012 42,574.27 259,727.78 625,888.86 928,190.91 0.00 928,190.91

As at 31/03/2012 26,325,946.00 42,147,782.15 12,743,349.97 770,868.79 -356,157.46 -5,087,814.06 76,543,975.39 0.00 76,543,975.39

20

€ Subscribed

capital

Capital

reserve

Retained

earnings

Changes in equity not affecting

results

Consolidated

balance sheet

loss

Equity

attributable to

equity holders

of the parent

Non-controlling

equity holders

Total

share capital

Other

retained

earnings

Foreign

currency

translations

Market

assessment

for securities

As at 01/01/2011 26,325,946.00 42,147,782.15 10,243,349.97 535,311.01 -427,800.00 -7,554,412.13 71,270,177.00 0.00 71,270,177.00

Total income and expenses for the period 01/01/–31/03/2011 -131,475.01 153,800.00 1,353,005.47 1,375,330.46 0.00 1,375,330.46

As at 31/03/2011 26,325,946.00 42,147,782.15 10,243,349.97 403,836.00 -274,000.00 -6,201,406.66 72,645,507.46 0.00 72,645,507.46

Dividend payment June 2011 -3,948,891.90 -3,948,891.90 0.00 -3,948,891.90

Total income and expenses for the financial year 01/01/–31/12/2011 192,983.51 -188,085.24 8,289,601.11 8,294,499.38 0.00 8,294,499.38

Allocations to retained earnings 2011

– to other retained earnings 2,500,000.00 -2,500,000.00 0.00 0.00 0.00

As at 31/12/2011 26,325,946.00 42,147,782.15 12,743,349.97 728,294.52 -615,885.24 -5,713,702.92 75,615,784.48 0.00 75,615,784.48

Total income and expenses for the period 01/01/–31/03/2012 42,574.27 259,727.78 625,888.86 928,190.91 0.00 928,190.91

As at 31/03/2012 26,325,946.00 42,147,782.15 12,743,349.97 770,868.79 -356,157.46 -5,087,814.06 76,543,975.39 0.00 76,543,975.39


Q1–2012

for the period from 1 January to 31 March 2012gfT Technologies Aktiengesellschaft, Stuttgart

CONSOLIDATED CASH fLOW STATEMENT

First quarter

€ 01/01/– 31/03/2012

01/01/– 31/03/2011

Net income 625,888.86 1,353,005.47

Depreciation on non-current intangible and

tangible assets 370,535.90 313,422.50

Changes in provisions 459,288.58 1,473,912.70

Other non-cash expenses/income -155,941.89 -7,510.54

Profit from the disposal of long-term tangible

and intangible assets as well as financial assets 689.00 0.00

Changes in trade receivables -4,325,484.14 -3,375,710.03

Changes in other assets -169,210.16 134,981.91

Changes in trade liabilities and

other liabilities -9,296,711.28 -2,195,934.75

Other changes in equity 42,574.27 -131,475.01

Cash flow from operating activities -12,448,370.86 -2,435,307.75

Cash payments to acquire tangible assets -233,508.04 -342,089.82

Cash payments to acquire non-current

intangible assets -37,743.21 -89,986.49

Cash flow from investing activities -271,251.25 -432,076.31

Cash receipts from taking out short-term or long-term loans 91,662.61 633,419.99

Cash flow from financing activities 91,662.61 633,419.99

Change in cash funds from cash-relevant transactions -12,627,959.50 -2,233,964.07

Cash funds at the beginning of the period 32,472,593.37 26,232,995.13

Cash funds at the end of the period 19,844,633.87 23,999,031.06

22

23➜ ❘ Notes

The Consolidated Interim financial Statements of gfT Technologies

Aktiengesellschaft (»gfT Ag«) should be read in conjunction with

the Annual financial Statements of gfT Ag as of the end of the last

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

accordance with standard principles of accounting and valuation and

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

the german Securities Trading Act (WpHg) and the regulations for the

frankfurt Stock Exchange.

The Interim financial Statements have been prepared according to the

International financial Reporting Standards (IfRS) issued by the Inter-

national Accounting Standards Board (IASB) effective on the balance

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

and valuation methods were used in these Interim financial Statements

as in the last Consolidated financial Statements as at 31 December

2011. The reporting format of these Interim financial Statements has

been changed slightly compared to the Interim financial Statements

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

amended reporting format. New or amended standards and interpreta-

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

not have any major effect on the Interim financial Statements.

The Interim financial Statements and the Interim Management Report as

of 31 March 2012 have neither been audited according to section 317

HgB, nor been reviewed.

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.

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

There have been no changes to the scope of consolidation since the

Consolidated financial Statements were closed on 31 December 2011.

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


NOTES TO THE INTERIM fINANCIAL STATEMENTS

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

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

which is disclosed separately.

As of 31 March 2012, the company’s share capital of €26,325,946.00

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

change relative to 31 December 2011). These shares are bearer shares

and all grant equal rights.

In June 2011, a dividend of €0.15 per share was distributed to share-

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

the parent company gfT Ag. No dividends have yet been paid in finan-

cial year 2012. At the Annual general Meeting to be held in May 2012,

a proposal will be made to pay a dividend of €0.15 per share, totalling

€3,949 thousand, from the balance sheet profit of gfT Ag as of

31 December 2011.

There were no changes in Authorized Capital or Conditional Capital in

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

2011. As of 31 March 2012, 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 31 March 2012.

Changes in equity · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

Q1–2012

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

able segments. The identification of these segments was mainly based

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

show differences, and that the gfT group is organised, managed and

controlled on the basis of these segments. Internal reporting to the

Executive Board is based on the classification of group activities in these

segments.

The products and services with which the reportable segments generate

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

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

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

lance 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.

The reconciliation of the segment figures to the corresponding figures in

the Consolidated financial Statements is as follows:

Segment reporting · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

24

€ thsd. 01/01/– 31/03/2012

01/01/– 31/03/2011

Total segment revenue 58,774 68,908

Occasionally occurring revenue 3

Elimination of intersegment revenue -1,127 -1,605

Group revenue 57,650 67,303

Total segment results (EBT) 2,488 2,091

Non-attributed expenses/income of group HQ -2,183 -96

Non-attributed income for elimination of interim results 888 25

Other 77

Group result before taxes 1,270 2,020

€ thsd. 31/03/2012 31/03/2011

Total segment assets 116,224 109,551

Non-attributed assets of group HQ 115 93

Securities 7,679 14,271

Assets from income taxes 5,488 5,949

Other 977

Group assets 130,483 129,864

Total segment liabilities 50,452 54,834

Non-attributed liabilities of group HQ 378 482

Liabilities from income taxes 2,130 1,903

Other 979

Group liabilities 53,939 57,219

25➜ ❘ Notes

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.

The table below shows information according to geographic regions for

the gfT group:

Revenue from clients who account for more than 10% each of group

revenue is shown below:

Revenue Segments in which this revenue

is generated

€ million 01/01/– 31/03/2012

01/01/– 31/03/2011

01/01/– 31/03/2012

01/01/– 31/03/2011

Client 1 17.97 32.32 Services,

Resourcing

Services,

Resourcing

Revenue from sales to external clients 1 Non-current intangible

and tangible assets

€ million 01/01/– 31/03/2012

01/01/– 31/03/2011

31/03/2012 31/03/2011

germany 21.43 36.72 39.31 21.95

UK 9.30 9.91 0.10 0.14

Spain 6.65 6.51 1.16 1.02

france 9.75 6.88 0.11 0.05

USA 2.60 1.61 4.98 0.00

Switzerland 3.45 2.17 0.39 0.13

Other countries 4.47 3.50 0.28 0.31

Total 57.65 67.30 46.33 23.60

1 Determined by client location

Q1–2012

Services Resourcing Total Eliminations Consolidated

€ thsd. 31/03/2012 31/03/2011 31/03/2012 31/03/2011 31/03/2012 31/03/2011 31/03/2012 31/03/2011 31/03/2012 31/03/2011

External sales 30,490 28,892 27,157 38,411 57,647 67,303 3 57,650 67,303

Inter-segment sales 0 0 1,127 1,605 1,127 1,605 -1,127 -1,605 0 0

Total revenues 30,490 28,892 28,284 40,016 58,774 68,908 -1,124 -1,605 57,650 67,303

Scheduled depreciation -292 -255 -63 -49 -355 -304 -16 -9 -371 -313

Significant non-cash income/expenditure

other than depreciation 5 -24 0 0 5 -24 151 32 156 8

Interest income 22 21 2 2 24 23 107 136 131 159

Interest expenses -40 -7 -5 -22 -45 -29 42 27 -3 -2

Share of net profits of associated companies

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

Segment result (EBT) 1,809 1,439 679 652 2,488 2,091 -1,218 -71 1,270 2,020

Segment assets 80,266 60,822 35,958 48,729 116,224 109,551 14,259 20,313 130,483 129,864

Shares in associated companies reported according to the equity method 50 41 0 0 50 41 0 0 50 41

Investments in non-current intangible and tangible assets 240 366 23 53 263 419 8 13 271 432

Segment liabilities 25,924 22,671 24,528 32,163 50,452 54,834 3,487 2,385 53,939 57,219

gfT Technologies Aktiengesellschaft, Stuttgart

NOTES – INfORMATION ON BUSINESS SEgMENTS – SEgMENT REPORT

26

Services Resourcing Total Eliminations Consolidated

€ thsd. 31/03/2012 31/03/2011 31/03/2012 31/03/2011 31/03/2012 31/03/2011 31/03/2012 31/03/2011 31/03/2012 31/03/2011

External sales 30,490 28,892 27,157 38,411 57,647 67,303 3 57,650 67,303

Inter-segment sales 0 0 1,127 1,605 1,127 1,605 -1,127 -1,605 0 0

Total revenues 30,490 28,892 28,284 40,016 58,774 68,908 -1,124 -1,605 57,650 67,303

Scheduled depreciation -292 -255 -63 -49 -355 -304 -16 -9 -371 -313

Significant non-cash income/expenditure

other than depreciation 5 -24 0 0 5 -24 151 32 156 8

Interest income 22 21 2 2 24 23 107 136 131 159

Interest expenses -40 -7 -5 -22 -45 -29 42 27 -3 -2

Share of net profits of associated companies

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

Segment result (EBT) 1,809 1,439 679 652 2,488 2,091 -1,218 -71 1,270 2,020

Segment assets 80,266 60,822 35,958 48,729 116,224 109,551 14,259 20,313 130,483 129,864

Shares in associated companies reported according to the equity method 50 41 0 0 50 41 0 0 50 41

Investments in non-current intangible and tangible assets 240 366 23 53 263 419 8 13 271 432

Segment liabilities 25,924 22,671 24,528 32,163 50,452 54,834 3,487 2,385 53,939 57,219

27➜ ❘ Notes

Q1–201228

Compared to the disclosures made in the Notes to the Consolidated

financial Statements as at 31 December 2011, there were no significant

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

parties nor in relations with such parties.

Stuttgart, 7 May 2012

gfT Technologies Aktiengesellschaft

The Executive Board

Related party disclosures · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

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

Executive Board (Chairman) Executive Board Executive Board Executive Board

As of 31 March 2012, there were no significant changes to contingen-

cies and other financial commitments compared to the Consolidated

financial Statements as at 31 December 2011. As at 31 December

2011, there were no contingent receivables.

Changes to contingent liabilities · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

During the period 1 January to 31 March 2012, the gfT group invested

€60 thousand in intangible assets (1 January to 31 March 2011: €90

thousand) and €211 thousand in tangible assets (1 January to 31 March

2011: €342 thousand). There were no significant disinvestments in the

reporting period.

Investments/disinvestments · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

Q1–201229

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]

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.

fINANCIAL CALENDAR

Annual general Meeting

22 May 2012

Interim Report as of 30 June 2012

9 August 2012

Interim Report as of 30 September 2012

8 November 2012

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 2012: gfT Technologies Ag, Stuttgart

interim financial report q1 - gftinterim financial report as of 31 march 2012 q1. first quarter...

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