[PPT] - Financial results H1/2019 GFT Technologies SE 8 August 2019 PowerPoint Presentation

SLIDE 1

GFT Technologies SE 8 August 2019

Financial results H1/2019

SLIDE 2

2 GFT GROUP Shaping the future of digital business

Highlights in the first half 2019

Further expansion of client and sector diversification
20% revenue growth without top-2 clients*
Revenue share of insurance business at 11%
Revenue of €211m on par with previous year
Adjusted EBITDA up by 7%, positive accounting effects from IFRS 16
As expected, earnings in first half 2019 burdened by under-utilisation and restructuring
FY 2019 outlook unchanged and confirmed
Dynamic start to the second half of the year in insurance and industry sector

* GFT’s top-2 clients are Deutsche Bank and Barclays.

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

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3 GFT GROUP Shaping the future of digital business

Key figures

Preliminary results FY 2018

Revenue at the prior-year level, revenue

contribution by V-NEO €10.24m

Increase in EBITDA adjusted by 7%

shaped by positive effects from IFRS 16 of €6.16m

EBIT below prior-year level
EBT burdened by:

Restructuring charges €-2.89m (H1/2018: €-0.33m) Currency effects €-0.71m (H1/2018: €-0.71m) Underutilization €-1.40m vs. H1/2018

* Adjusted for non-operational effects from M&A activities (EBITDA) plus applicable tax effects (Net income and EPS)

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

in m€ H1/2019 H1/2018 ∆% Revenue 211.03 211.16 0% Revenue w/o V-NEO 200.79 211.16

5%

EBITDA adjusted* 21.94 20.49 7% EBITDA 20.22 20.12 0% EBIT 8.35 13.79

39%

EBT 7.15 12.54

43%

Net income 6.07 11.79

49%

Earnings per share (in €) 0.23 0.45

49%

Earnings per share adjusted (in €)* 0.37 0.58

37%

Employees (in FTE) 4,892 4,697 4%

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4 GFT GROUP Shaping the future of digital business

Revenue and EBITDA adjusted by quarter (in m€)

Preliminary results FY 2018

Q2/2019 EBITDA adjusted with positive IFRS 16 effect of €2.53m

MINOR VARIANCES DUE TO ROUNDING POSSIBLE

* Adjusted for non-operational effects from M&A activities IFRS 16 effects

8 August 2019

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5 GFT GROUP Shaping the future of digital business

Revenue by segment

Preliminary results FY 2018

Americas & UK: decreasing revenue with top-2 clients as anticipated, positive development in Mexico, Brazil and

Canada

Continental Europe: decreasing business with top-2 clients as expected, esp. in Germany. Market entry in France

in insurance

M&A-effects: positive and dynamic development of V-NEO as expected

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

in m€

H1/2019 H1/2018 Organic* M&A FX Total Americas & UK 97.61 92.60

7%

11% 2% 5% Continental Europe 113.16 118.26

4%

0% 0%

4%

Others 0.26 0.30

13%

n/a n/a

13%

GFT Group 211.03 211.16

6%

5% 1% 0% Growth rates Revenue

* At constant currency

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6 GFT GROUP Shaping the future of digital business

Revenue by segment

Preliminary results FY 2018 * Excluding segment „Others“

Revenue decrease with top-2 clients within expectations, decline especially in UK (segment Americas & UK) and in

Germany (segment Continental Europe)

Revenue with other clients shows strong dynamic in Americas & UK

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

in m€ ∆% H1/2019 H1/2018 H1/2019 / H1/2018 Americas & UK Top-2 clients 31.87 49.01

35%

Other clients 65.74 43.58 51% Total 97.61 92.60 5% Continental Europe Top-2 clients 34.66 41.57

17%

Other clients 78.50 76.69 2% Total 113.16 118.26

4%

GFT Group* Top-2 clients 66.53 90.58

27%

Other clients 144.24 120.28 20% Total 210.77 210.86 0% Revenue

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7 GFT GROUP Shaping the future of digital business

EBITDA adjusted, EBITDA and EBT by segment

Preliminary results FY 2018

* Adjusted for non-operational effects from M&A activities

Americas & UK: earnings burdened by decreasing revenue share of top-2 clients as well as higher sales

expenses, however, positive development of Brazil, Mexico and Canada

Continental Europe: restructuring expenses and underutilization in the first half, weaker business with top-2

clients in Germany. Positive development with retail banks in Italy and insurers in France.

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

H1/2019 H1/2018 ∆% H1/2019 H1/2018 ∆% H1/2019 H1/2018 ∆% Americas & UK 5.49 6.37

14%

3.77 6.01

37%
0.20

3.03 < -100% Continental Europe 17.72 13.78 29% 17.72 13.78 29% 8.93 9.59

7%

Others

1.27

0.33 < -100%

1.27

0.33 < -100%

1.58
0.08

>100% GFT Group 21.94 20.49 7% 20.22 20.12 0% 7.15 12.54

43%

in m€ EBITDA adjusted* EBITDA EBT

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8 GFT GROUP Shaping the future of digital business

Revenue by country (in m€)

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

H1/2019 ∆% H1/2018 46.88 Spain

1%

47.59 41.84 United Kingdom

23%

54.46 31.83 Italy 10% 29.02 26.06 Germany

18%

31.82 18.05 USA

12%

20.58 14.28 Brazil 32% 10.80 7.79 Mexico 98% 3.93 7.78 Canada >100% 0.53 4.49 France >100% 0.34 3.33 Switzerland

35%

5.15 8.70 Others 25% 6.94 211.03 Total 0% 211.16

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9 GFT GROUP Shaping the future of digital business

30 biggest clients H1/2019 – TRUMPF as new entry

Preliminary results FY 2018

Insurance Retail Banking Capital Markets

not disclosed

Revenue by sector Industry & Others

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

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10 GFT GROUP Shaping the future of digital business

Detailed profit & loss statement

* Other operating expenses including results of investments accounted for using the equity method

Revenue with organic decrease at constant currency by 6%
Share of cost of purchased services at 11% of revenue

(H1/2018: 13%)

Increased personnel expenses due to higher average

number of employees, restructuring expenses and reduced costs of purchased services

Ratio of „personnel expenses (excl. restructuring) plus

purchased services to revenue“ at 80% (H1/2018: 78%, FY 2018: 78%)

Other operating expenses adjusted for positive effects from

IFRS 16 application in the amount of €6.16m basically at prior-year level

EBITDA without positive IFRS 16 decreased by 30%
Increase of depreciation and amortisation as a

consequence of IFRS 16 effect in the amount of €5.63m

Net income affected by increased income taxes. Tax rate of

15% (H1/2018: 6%) in line with expectations for the full year

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019 in m€

H1/2019 H1/2018 ∆% Revenues 211.03 211.16 0% Other operating income 3.67 2.72 35% Cost purchased services

23.40
28.39
18%

Personnel expenses

147.72
135.33

9% Other operating expenses*

23.36
30.04
22%

EBITDA 20.22 20.12 0% Depreciation and amortisation

11.87
6.33

88% EBIT 8.35 13.79

39%

Interest and similar expenses/income

1.20
1.25
4%

EBT 7.15 12.54

43%

Income taxes

1.08
0.75

44% Net income 6.07 11.79

49%

Earnings per share - basic 0.23 0.45

49%

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11 GFT GROUP Shaping the future of digital business

Cash flow analysis (in m€)

Preliminary results FY 2018

Solid financing structure: undrawn credit

lines of €40.58m (31/12/2018: €37.05m). Net cash at €-70.11m (31/12/2018: €-59.67m)

Cash decreased to €57.02m (31/12/2018:

€61.57m) due to dividend payment and working capital effects

Operating cash flow adjusted for IFRS 16

effects below prior year mainly as a result

f reduced net income and working capital

development

Lower cash outflow from financing

activities excluding IFRS 16 effects of €-6.16m primarily attributed to net proceeds from loans €5.89m (H1/2018: €-5.14m). Cash flow from financing activities characterised by dividend payment of €7.90m (H1/2018: €7.90m)

Cash flow from investing activities at

prior-year level

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019 * Does not contain lease liabilities according to IFRS 16

H1/2019 30/06/2019 31/12/2018 61.57 57.02

59.67
121.24
3.02
70.11

6.33

8.17

0.31

127.13

Cash Operating Cash Flow Financing Activities Investments FX Effects Financial Liabilities* Net Cash Cash Financial Liabilities* Net Cash

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12 GFT GROUP Shaping the future of digital business

Balance sheet (in m€)

Equity adjusted for currency translation effects declined by €4.18m. The positive net income for the period of €6.07m (H1/2018: €11.79m) was offset by the shareholder dividend amounting to €7.90m (H1/2018: €7.90m). The initial application of IFRS 16 resulted in negative transition effects of €2.34m. Equity ratio at 29% (31/12/2018: 34%), adjusted by IFRS 16 effects at 35% Increase of non-current liabilities by €57.42m predominantly associated with lease liabilities according to IFRS 16 of €58.04m. Decline in current liabilites of €4.54m primarily due to decrease of contract liabilities by €10.94m. Major opposing effect from other financial liabilities (€8.06) of which 4.67m related to IFRS 16 Growth of balance sheet total by €49.38m largely driven by changed lease accounting pursuant to IFRS 16 Increase of non-current assets mainly related to capitalisation of right-of-use assets according to IFRS 16 of €59.88m concerning real estate, parking and mainly cars. Share of non-current assets to balance sheet total amounted to 56% (31/12/2018: 48%) Cash and cash equivalents decreased by 7% due to dividend payments and working capital impact Slight reduction of other current assets by €2.49m in essence induced by income tax reimbursements. Trade receivables and contract assets in total slightly higher than in prior year reflecting a positive business trend

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

Assets Equity and liabilities

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13 GFT GROUP Shaping the future of digital business

Employees by country (FTE)

Preliminary results FY 2018 *Others: Costa Rica, Switzerland, USA, Belgium, France **Canada: since Q3/2018 incl. V-NEO

Increase of number of employees against prior-year

comparable (30/06/2018) due to V-NEO acquisition as well as staff expansion in Mexico and Brazil

Decrease of headcount in Spain and Poland
Corporate functions with 116 employees (H1/2019: 121)
Utilization rate at previous year level 89%

(H1/2018: 89%)

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

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14 GFT GROUP Shaping the future of digital business

Outlook FY 2019 (in m€)

Outlook

* Adjusted for non-operational effects from M&A activities

Revenue +2% EBITDA adjusted*

12%/ +21%

EBITDA

12% / +23%

EBT

20%

IFRS 16 effects

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

Decrease in revenue with top-2 clients of approx. 30%
On-going success in diversification ex top-2 clients : growth without top-2 clients of over 20% and share of insurance

business to reach over 10% of revenues

Earnings burdened by short-term restructuring charges and underutilisation in connection with top-2 clients as well as

permanently increased sales expenses for further client diversification. Effects from IFRS 16 are detailed in the backup. Revenue Earnings

Outlook for FY 2019 unchanged and confirmed

17.4 16.1 22.6 18

2016 2017 2018 2019

46.8 35.4 39.7 35

2016 2017 2018 2019

423 419 413 420

2016 2017 2018 2019

31.6 33.4 37.5 33

2016 2017 2018 2019

13

48

13

46

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15 GFT GROUP Shaping the future of digital business

Outlook: Revenue for top-2 clients in FY 2019*

Outlook MINOR VARIANCES DUE TO ROUNDING POSSIBLE * Excluding segment „Others“ 8 August 2019

in m€ ∆% ∆% 2019 2018 2017 2019/2018 2019/2017 Americas & UK Top-2 clients 56.00 84.79 114.34

34%
51%

Other clients 135.00 98.66 81.05 37% 67% Continental Europe Top-2 clients 58.00 79.56 76.34

27%
24%

Other clients 171.00 149.32 146.15 15% 17% GFT Group Top-2 clients 114.00 164.35 190.68

31%
40%

Other clients 306.00 247.97 227.20 23% 35% Total 420.00 412.32 417.88 2% 1% Revenue

SLIDE 16

Backup

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17 GFT GROUP Shaping the future of digital business

Results at a glance per quarter

Preliminary results FY 2018

* Adjusted for non-operational effects from M&A activities (EBITDA) plus applicable tax effects (Net Income and EPS)

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

Q1/2018 Q2/2018 Q3/2018 Q4/2018 FY 2018 Q1/2019 Q2/2019 FY 2019 Revenue 106.99 104.17 97.91 103.76 412.83 105.72 105.31 211.03 EBITDA adjusted* 10.05 10.44 8.30 10.89 39.68 11.16 10.78 21.94 EBITDA 10.05 10.07 7.91 9.42 37.45 10.28 9.94 20.22 EBIT 6.87 6.92 4.72 6.21 24.72 3.87 4.48 8.35 EBT 6.24 6.29 4.39 5.72 22.64 3.18 3.97 7.15 Net income 4.69 7.10 4.82 3.37 19.98 2.71 3.36 6.07 Net income adjusted* 6.37 8.95 6.76 6.49 28.57 4.79 5.17 9.96 Earnings per share adj. (in €)* 0.24 0.34 0.26 0.25 1.09 0.17 0.20 0.37 Earnings per share (in €) 0.18 0.27 0.18 0.13 0.76 0.10 0.13 0.23 Employees (in FTE) 4,735 4,697 4,860 4,875 4,875 4,910 4,892 4,892 in m€

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18 GFT GROUP Shaping the future of digital business

Split of operative and M&A Effects

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019 GFT stand alone V-NEO GFT Total GFT stand alone V-NEO GFT Total EBITDA adjusted 19.63 2.31 21.94 20.49 0.00 20.49 M&A earn-out & retention 0.00

1.61
1.61

0.00 0.00 0.00 M&A consult & integrate 0.00 0.00 0.00 0.00

0.37
0.37

M&A amortisation orderbook 0.00

0.11
0.11

0.00 0.00 0.00 EBITDA 19.63 0.59 20.22 20.49

0.37

20.12 Depreciation & amortisation

9.66

0.02

9.64
3.67

0.00

3.67

M&A amortisation

1.46
0.77
2.23
2.66

0.00

2.66

EBIT 8.51

0.16

8.35 14.16

0.37

13.79 Interest

1.10
0.10
1.20
0.70

0.00

0.70

M&A interest 0.00 0.00 0.00

0.56

0.00

0.56

EBT 7.41

0.26

7.15 12.90

0.37

12.54 Income taxes

1.11

0.03

1.08
0.81

0.06

0.75

Net income 6.30

0.23

6.07 12.10

0.30

11.79 Net income adjusted 7.76 1.96 9.72 15.32 0.00 15.32 Shares outstanding (m.) 26.33 26.33 26.33 26.33 26.33 26.33 EPS basic (€) 0.24

0.01

0.23 0.46

0.01

0.45 EPS adjusted (€) 0.29 0.03 0.37 0.58 0.00 0.58 in m€ H1/2018 H1/2019

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19 GFT GROUP Shaping the future of digital business

Effects after initial application of IFRS 16

MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019

in m€ after IFRS 16 Adjustment before IFRS 16 after IFRS 16 Adjustment before IFRS 16 EBITDA adjusted 21.94 6.16 15.78

approx. 48
approx. 13
approx. 35

EBITDA 20.22 6.16 14.06

approx. 46
approx. 13
approx. 33

EBIT 8.35 0.53 7.82

approx. 21
approx. 1
approx. 20

EBT 7.15

0.07

7.22

approx. 18
approx. 0
approx. 18

H1/2019 2019 expected

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20 GFT GROUP Shaping the future of digital business

Consolidated Income Statement

1 The GFT Group has initially applied IFRS 16 at 1 January 2019. Under the modified retrospective transition method chosen, comparative information is not restated. 2 Adjusted, refer to note 2.2 of the condensed half-year consolidated financial statements for the period from 1 January to 30 June 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE

in € H1/2019 H1/2018

1

∆% Revenue 211,032,024.31 211,160,470.61 0% Other operating income 3,667,364.45 2,724,409.22 2 35% 214,699,388.76 213,884,879.83 2 0% Cost of purchased services 23,403,491.73 28,392,945.38

18%

Personnel expenses Wages and salaries 124,088,003.73 111,392,567.56 11% Social security contributions and expenditures 23,632,920.96 23,933,234.90

1%

147,720,924.69 135,325,802.46 9% Depreciation and amortisation of intangible assets and property, plant and equipment 11,868,596.78 6,329,582.95 88% Other operating expenses 23,357,728.97 29,968,675.86 2

22%

Result from operating activities 8,348,646.59 13,867,873.18

40%

Other interest and similar income 242,985.78 66,766.98 264% Result of investments accounted for using 0.00

73,300.67
100%

Interest and similar expenses 1,444,575.34 1,323,369.65 9% Financial result

1,201,589.56
1,329,903.34
10%

Earnings before taxes 7,147,057.03 12,537,969.84

43%

Income taxes 1,079,994.52 745,677.19 45% Net income for the period 6,067,062.51 11,792,292.65

49%

Earnings per share – basic 0.23 0.45

49%

8 August 2019

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21 GFT GROUP Shaping the future of digital business

Consolidated Cash Flow Statement

1 The GFT Group has initially applied IFRS 16 at 1 January 2019. Under the modified retrospective transition method chosen, comparative information is not restated. MINOR VARIANCES DUE TO ROUNDING POSSIBLE in € H1/2019 H1/2018

1

∆ Net income for the period 6,067,062.51 11,792,292.65

5,725,230.14

Income taxes 1,079,994.52 745,677.19 334,317.33 Interest income 1,201,589.55 1,256,602.67

55,013.12

Interest paid

439,375.04
431,608.39
7,766.65

Interest received 230,584.98 61,741.80 168,843.18 Income taxes paid

1,033,879.33
94,447.64
939,431.69

Depreciation and amortisation of intangible assets and property, plant and equipment 11,868,596.78 6,329,582.95 5,539,013.83 Changes in provisions

2,686,275.61
1,635,323.92
1,050,951.69

Other non-cash expenses and income 2,604,849.67

903,044.43

3,507,894.10 Net proceeds on disposal of intangible assets and property, plant and equipment 12,066.64 43,999.73

31,933.09

Changes in contract assets

19,926,606.44
13,195,489.95
6,731,116.49

Changes in trade receivables 16,787,874.93 10,155,677.56 6,632,197.37 Changes in other assets 7,012,683.13

521,338.14

7,534,021.27 Changes in contract liabilities

10,936,432.95
4,244,629.81
6,691,803.14

Changes in trade payables and other liabilities

5,516,380.05
1,542,203.59
3,974,176.46

Cash flow from operating activities 6,326,353.30 7,817,488.68

1,491,135.38

Proceeds from disposal of property, plant and equipment 1,714.68 22,216.69

20,502.01

Capital expenditure for intangible assets

1,388,261.32
1,136,570.07
251,691.25

Capital expenditure for property, plant and equipment

1,636,489.55
1,583,529.82
52,959.73

Cash flow from investing activities

3,023,036.19
3,250,610.71

227,574.52 Proceeds from borrowing 6,036,175.09 0.00 6,036,175.09 Cash outflows from loan repayments

149,598.16
5,144,920.14

4,995,321.98 Cash outflows from repayment of lease liabilities

6,163,397.05

0.00

6,163,397.05

Cash flow from financing activities

8,174,603.92
13,042,703.94

4,868,100.02 Effect of foreign exchange rate changes on cash and cash equivalents 321,242.89

208,714.07

529,956.96 Net increase in cash and cash equivalents

4,550,043.92
8,684,540.04

4,134,496.12 Cash and cash equivalents at beginning of period 61,569,726.64 72,246,225.54

10,676,498.90

Cash and cash equivalents at end of period 57,019,682.72 63,561,685.50

6,542,002.78

8 August 2019

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22 GFT GROUP Shaping the future of digital business

Consolidated Balance Sheet

1 The GFT Group has initially applied IFRS 16 at 1 January 2019. Under the modified retrospective transition method chosen, comparative information is not restated. MINOR VARIANCES DUE TO ROUNDING POSSIBLE

Assets Equity and liabilities in € 30.06.2019 31.12.2018

1

∆% in € 30.06.2019 31.12.2018

1

∆% Non-current assets Shareholders’ equity Goodwill 114,027,987.20 112,994,212.45 1% Share capital 26,325,946.00 26,325,946.00 0% Other intangible assets 24,490,812.39 26,697,279.93

8%

Capital reserve 42,147,782.15 42,147,782.15 0% Property, plant and equipment 85,457,639.18 26,585,119.74 221% Retained earnings Other financial assets 1,355,763.72 754,985.33 80% Other retained earnings 22,243,349.97 22,243,349.97 0% Tax assets 16,085.54 1,037,926.35

98%

Changes not affecting net income

5,550,591.36
5,550,591.36

0% Deferred tax assets 8,752,607.48 8,152,157.82 7% Other comprehensive income Other assets 1,336,150.20 2,798,337.65

52%

Actuarial gains/losses

1,469,311.30
1,459,016.99

1% 235,437,045.71 179,020,019.27 32% Currency translation differences

6,222,143.50
6,903,723.71
10%

Consolidated net profit 46,136,723.97 50,310,524.61

8%

Current assets 123,611,755.93 127,114,270.67

3%

Inventories 73,266.75 159,549.22

54%

Non-current liabilities Trade receivables 77,194,416.49 95,390,886.70

19%

Financial liabilities 105,236,937.38 105,944,626.79 Contract assets 34,301,239.09 14,083,478.02 144% Other financial liabilities 58,035,451.71 0.00 #DIV/0! Cash and cash equivalents 57,019,682.72 61,569,726.64

7%

Provisions for pensions 7,072,261.93 6,952,004.11 2% Other financial assets 3,925,968.19 1,068,826.39 267% Other provisions 1,686,212.39 1,694,524.00 0% Tax assets 2,123,565.57 6,756,612.89

69%

Deferred tax liabilities 4,996,670.21 5,017,851.70 0% Other assets 11,855,650.64 14,502,998.57

18%

177,027,533.62 119,609,006.60 48% 186,493,789.45 193,532,078.43

4%

Current liabilities Trade payables 8,289,484.21 13,701,878.77

40%

Financial liabilities 21,893,482.83 15,299,216.49 43% Other financial liabilities 11,262,256.90 3,197,493.83 252% Other provisions 33,598,012.22 35,895,512.80

6%

Tax liabilities 2,120,322.13 3,471,409.54

39%

Contract liabilities 21,641,517.17 32,577,950.12

34%

Other liabilities 22,486,470.16 21,685,358.88 4% 121,291,545.61 125,828,820.43

4%

421,930,835.16 372,552,097.70 13% 421,930,835.16 372,552,097.70 13%

8 August 2019

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23 GFT GROUP Shaping the future of digital business

Consolidated Statement of Comprehensive Income

1 The GFT Group has initially applied IFRS 16 at 1 January 2019. Under the modified retrospective transition method chosen, comparativ information is not restated. MINOR VARIANCES DUE TO ROUNDING POSSIBLE

in € H1/2019 H1/2018 1 ∆% Net income for the period 6,067,062.51 11,792,292.65

49%

Items that will not be reclassified to the income statement Actuarial gains/losses

13,176.71
24,185.75

< -100% Income taxes on items in the other comprehensive income 2,882.40 5,317.99

46%

Items that may be reclassified to the income statement Currency translation of net investments in foreign business operations

529,624.21
550,672.80

< -100% Gains/losses from currency translation of foreign subsidiaries 1,211,204.42

375,515.62

>100% Other comprehensive income 671,285.90

945,056.18
29%

Total comprehensive income 6,738,348.41 10,847,236.47

38%

8 August 2019

SLIDE 24

24 GFT GROUP Shaping the future of digital business

Consolidated Statement of Changes in Equity

1 The GFT Group has initially applied IFRS 9 and IFRS 15 at 1 January 2018. Under the modified retrospective transition method chosen, comparativ information is not restated. 2 Net income for the period 3 The GFT Group has initially applied IFRS 16 at 1 January 2019. Under the modified retrospective transition method chosen, comparativ information is not restated. MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8 August 2019 Share capital Capital reserve Other retained earnings Changes not affecting net Actuarial gains/losses Currency translation Consolidated net profit/loss Total equity in € Balance at 1 January 2018 1 26,325,946.00 42,147,782.15 22,243,349.97

5,130,993.24
2,670,281.68
6,010,354.83

38,416,773.14 115,322,221.51 Effects from the initial application of IFRS 9 0.00 0.00 0.00 0.00 0.00 0.00

184,049.37
184,049.37

Adjusted balance at 1 January 2018 26,325,946.00 42,147,782.15 22,243,349.97

5,130,993.24
2,670,281.68
6,010,354.83

38,232,723.77 115,138,172.14 Dividends to shareholders 0.00 0.00 0.00 0.00 0.00 0.00

7,897,783.80
7,897,783.80

Dividends to non-controlling interests 0.00 0.00 0.00

419,598.12

0.00 0.00 0.00

419,598.12

Total comprehensive income for the period 1 January to 30 June 2018 0.00 0.00 0.00 0.00

18,867.75
926,188.42

11,792,292.65 2 10,847,236.48 Balance at 30 June 2018 26,325,946.00 42,147,782.15 22,243,349.97

5,550,591.36
2,689,149.43
6,936,543.25

42,127,232.62 117,668,026.70 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Balance at 1 January 2019 3 26,325,946.00 42,147,782.15 22,243,349.97

5,550,591.36
1,459,016.99
6,903,723.71

50,310,524.61 127,114,270.67 Effects from the initial application of IFRS 16 0.00 0.00 0.00 0.00 0.00 0.00

2,343,079.35
2,343,079.35

Adjusted balance at 1 January 2019 26,325,946.00 42,147,782.15 22,243,349.97

5,550,591.36
1,459,016.99
6,903,723.71

47,967,445.26 124,771,191.32 Dividends to shareholders 0.00 0.00 0.00 0.00 0.00 0.00

7,897,783.80
7,897,783.80

Total comprehensive income for the period 1 January to 30 June 2019 0.00 0.00 0.00 0.00

10,294.31

681,580.21 6,067,062.51 2 6,738,348.41 Balance at 30 June 2019 26,325,946.00 42,147,782.15 22,243,349.97

5,550,591.36
1,469,311.30
6,222,143.50

46,136,723.97 123,611,755.93

SLIDE 25

Shaping the future

f digital business

GFT Technologies SE Dr Jochen Ruetz CFO Schelmenwasenstraße 34 70567 Stuttgart T +49 711 62042-422 jochen.ruetz@gft.com GFT Technologies SE Karl Kompe Investor Relations Manager Schelmenwasenstraße 34 70567 Stuttgart T +49 711 62042-323 karl.kompe@gft.com