GFT Technologies SE — Earnings Release 2006

Mar 29, 2007

News Details

Corporate | 29 March 2007 08:21

GFT Technologies AG: 2006 dynamic increase in revenue and results – Revenue growth to € 350m. by 2011

GFT Technologies AG / Final Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Group revenues up 44 percent to € 173.7m.

Pre-tax result rises by € 5.1m. to € 6.7m.

Earnings per share jumps from € 0.04 to € 0.19

150 new recruits throughout the Group by the end of 2007

Revenue planned to double by 2011

St. Georgen/Stuttgart, 29 March 2007 – GFT Technologies AG (GFT), a leading
provider of innovative IT solutions, exceeded both revenue and result
expectations for 2006. This positive development will continue through 2007
and revenues are planned to double to around € 350m. by 2011. The Group
announced today that, as a result of the robust level of incoming orders, a
further 150 employees were expected to be recruited in total by the end of
this year.

At the end of 2006, GFT already employed 1,057 individuals – 76 more than
the previous year. The Group has implemented its business strategy with
consistency; new markets have been penetrated and new customers attracted.
The focus by the Services business division on the strategic industries of
financial services, postal services and logistics, has paid off.

Profitable growth was achieved both organicly and through acquisition. The
acquisition by the Resourcing business division, which was fully integrated
into the GFT Group by the end of July 2006, was a key contributor.

Ulrich Dietz, Chairman of the Executive Board of GFT Technologies AG,
predicts great growth potential for the future. 'We have attained an
attractive position in our twentieth year as a global company, on which we
plan to expand in the next few years. We intend to expand our business to
around € 350m. by 2011. We will do this via a mix of organic growth and
further acquisition.'

The GFT Group already showed considerable growth in revenues in 2006. They
rose by € 52.8m. to € 173.7m. compared to the previous year (2005: €
120.9m.). The acquired companies in the Resourcing division contributed €
40.1m. to the growth in revenue. Earnings before taxes (EBT) rose by €
5.1m. to € 6.7m. This implies a profit margin of 3.8 percent.

'GFT will benefit from our current advantageous strategic positioning
during the year, as well as from positive impulses in the economic
environment', predicts Ulrich Dietz. He expects dynamic growth in the
Resourcing division in particular, due to increasingly scarce specialist IT
resources. 'Our present level of incoming orders already reflects these
general market conditions. Against this backdrop we anticipate rising sales
– to € 190m. to 200m. – for 2007. Profitability, too, will increase
disproportionately.'

Ulrich Dietz expects an operating margin of 4.5 to 5 percent before taxes
for the GFT Group in 2007 (2005: 3.8%). Earnings per share should increase
to between € 0.24 and € 0.26.

Additional key indicators:

The largest growth in revenues was achieved in the Resourcing division in
2006, which more than doubled by 122 percent to € 84.2m. This business
segment is contributing almost half of the total revenues. The division
benefited from the integration of the companies acquired at the start of
2006, as well as from an active demand for freelance IT specialists.

Due to successful projects in Europe and South America GFT sales in the
Services division rose by six percent to € 82.4m. The Group was also able
attract a variety of long-term orders with customers in the target
industries of finance and logistics services, which will enter the
implementation phase during 2007.

The Software division rose by 26 percent to € 7.1m. The successful launch
of the new GFT product inspire for the optimisation of business processes
played a major role in this increase.

As in the previous year Germany was the largest sales market (63 percent),
followed by Great Britain (nine percent) and Spain (eight percent).
Earnings per share increased in the past financial year to € 0.19 (previous
year: € 0.04).

As of 31 December 2006, the GFT Group balance sheet reported cash and cash
equivalents and securities of € 23.9m.

GFT Group total assets grew by € 13.8m. to € 92.2m. This surge is also due
to the acquisition of the former Parity companies. Equity was up € 4.9m.
from € 44.5m. to € 49.4m. Net income for the period amounted to € 5.1m. and
the equity to assets ratio was 54 percent.

The GFT Group’s annual report is available on the Group’s website
http://www.gft.com.

Andrea Wlcek
Investor Relations
& Corporate Communications
GFT Technologies AG
D-78112 St. Georgen
T: +49-7724-9411-440
F: +49-7724-9411-883
andrea.wlcek@gft.com
www.gft.com

DGAP 29.03.2007

Language: English
Issuer: GFT Technologies AG
Leopoldstraße 1
78112 St. Georgen/Schwarzwald Deutschland
Phone: +49 (0)7724 / 9411-0
Fax: +49 (0)7724 / 9411-883
E-mail: ir@gft.de
www: www.gft.de
ISIN: DE0005800601
WKN: 580060
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, Stuttgart

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