GFT Technologies SE — Interim / Quarterly Report 2011

Aug 11, 2011

Key figures according to IFRS

Continued operations		Half-year
		01/01/– 30/06/2011	01/01/– 30/06/2010	Change
Income Statement
Revenue	€m	141.80	114.68	23.6%
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	€m	5.76	4.93	16.8%
Earnings before interest and taxes (EBIT)	€m	5.13	4.36	17.7%
Earnings before taxes (EBT)	€m	5.52	4.65	18.7%
Net income as of 30 June from continued operations	€m	3.63	3.55	2.3%
Balance Sheet
Other non-current assets	€m	35.59	29.71	19.8%
Cash, cash equivalents and securities	€m	18.09	26.44	-31.6%
Other current assets	€m	81.41	59.08	37.8%
ASSETS	€m	135.09	115.23	17.2%
Non-current liabilities	€m	2.28	2.26	0.9%
Current liabilities	€m	61.64	46.36	33.0%
Shareholders´ equity	€m	71.17	66.61	6.8%
SHAREHOLDERS' EQUITY AND LIABILITIES	€m	135.09	115.23	17.2%
Equity ratio	%	53	58
Cash flow
Cash flow from operating activities	€m	-11.62	-8.59	35.3%
Cash flow from investing activities	€m	-0.84	-11.08	-92.4%
Cash flow from financing activities	€m	-3.54	-2.23	58.7%
Employees
Number of permanent employees (as of 30 June)		1,317	1,209	8.9%
Share
Earnings per share acc. to IAS 33	€	0.14	0.13	2.3%

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

The GFT Group continued its positive start to the year in the second quarter and ended the first six months of 2011 with new record levels of both revenue and pre-tax earnings (EBT). The Executive Board therefore confirms its forecast for the current year made in the Consolidated Financial Statements 2010 and expects total revenue of €275 million and earnings before taxes of €13 million in fiscal year 2011.

Contents

Consolidated Interim Management Report

of GFT Technologies AG as of 30 June 2011

Business environment

Economic environment

Macroeconomic development

Following a dynamic economic recovery which still dominated the first quarter of 2011, there were growing signs in the second quarter that the global upturn was beginning to lose momentum. In addition to weaker US indicators, a more modest outlook for China and high energy costs, this was mainly due to the problems surrounding the high sovereign debt of certain nations. The massive state deficits of the USA and Japan – the latter largely due to the consequences of the devastating earthquake and tsunami – and developments in the Euro zone gave cause for concern. According to the International Monetary Fund (IMF), the huge debts of Greece, Ireland and Portugal not only represent a danger for the Euro zone but for the whole global economy.

In their report published in June 2011, the IMF's experts reported increased risks and a slight slowdown in the economic recovery. After reaching 5.1% in the previous year, the global economy is expected to grow by 4.3% in 2011. In April 2011, the IMF had forecast growth of 4.4%.

Despite the debt problems of several nations, the IMF expects the Euro zone to achieve further growth and forecasts a rise in GDP of 2.0% for 2011. The IMF has thus upgraded its April forecast – in which growth was expected to reach 1.6%. European growth is mainly being driven by high capital spending in Germany and France. With regard to Greece's sovereign debt problem, the IMF noted the concerns of many investors that the Greek government was incapable of taking the necessary steps to avert the country's insolvency. Experts also warned against the possibility of the crisis spreading to other states.

In its latest report, the IMF upgraded its forecast for Germany. Following strong growth in the first six months, the German economy is now expected to grow by 3.2% in 2011 as a whole. This represents a considerable increase of 0.7 %-points over the IMF's April report, which had assumed growth of 2.5%. The positive trend in Germany is largely due to the strong order position enjoyed by the country's manufacturers: demand for German industrial products remained favourable in the second quarter.

Sector development

According to the latest economic survey of the German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) in July 2011, Germany's Information and Communication Technology (ICT) sector is still very upbeat. Two thirds of German high-tech companies surveyed expect second-quarter revenues to be up on the same period last year. For 2011 as a whole, 74% of Germany's ICT companies forecast growth in sales. In spring, the proportion was still 90%.

BITKOM states that these positive sales expectations are to be found in all segments of the ICT industry. IT service companies are particularly optimistic: 82% of companies forecast revenue growth for the current 2011 fiscal year. Companies are benefiting above all from the rising demand for Cloud Computing solutions. However, 59% of companies surveyed thought that the current lack of skilled IT workers was the greatest obstacle to growth.

The sector association upheld its positive assessment of the German IT market and continues to forecast market volume of €68.8 billion. This represents year-on-year growth of 4.3%. For the IT Services market, BITKOM expects growth of 3.5% to €34.2 billion.

Course of business in the first six months of 2011

The GFT Group benefited from the macroeconomic recovery and continued its positive start to the year in the second quarter. The Group ended the first six months of 2011 with new record levels of both revenue and pre-tax earnings (EBT). Revenue grew year on year by 24% to €141.80 million (prev. year: €114.68 million). At €5.52 million, EBT exceeded the prior-year figure by 19% (prev. year: €4.65 million).

The GFT Group enjoyed a successful second quarter with a further acceleration in the pace of growth. After reaching €67.30 million in the first quarter, the Group generated revenue of €74.50 million in the second quarter (prev. year: €60.25 million). EBT in the second quarter amounted to €3.50 million (prev. year: €3.02 million); in the first quarter it had reached €2.02 million.

The positive development of revenue in the first half of 2011 is largely due to a strong increase in segment revenue in the Resourcing division, which posted year-on-year growth of 43% to reach €83.54 million (prev. year: €58.44 million). The segment was able to exploit the ongoing recovery of the industrial sector and raised revenue across all its national markets. Growth was particularly strong in France and Germany. In addition to revenue growth achieved with existing clients, growth was also boosted by new client acquisitions. Despite challenging conditions in the financial sector, the Services division succeeded in raising segment revenue year on year by 4% to €58.26 million (prev. year: €56.21 million), thus enhancing slightly the high revenue level it had already achieved. Growth in this segment can be mainly attributed to demand for outsourcing services and higher revenues in the corporate and investment banking sector.

As a result of increased revenue and successful measures for raising productivity, the GFT Group was able to raise earnings before taxes by 19%. In the first six months of 2011, EBT reached €5.52 million (prev. year: €4.65 million). The Services division once again made the largest contribution to total earnings with a segment result of

€4.56 million, corresponding to year-on-year growth of 14% (prev. year: €4.01 million). The Resourcing division posted segment earnings of €1.65 million, compared to €0.86 million in the same period last year – an increase of 93%. Earnings for the first six months also consider nonallocated expenditure of the Group's headquarters, including ancillary purchase costs for acquisitions, amounting to €0.69 million.

By acquiring the Swiss-based Asymo AG on 9 June 2011, the GFT Group has expanded its portfolio of services with the addition of top-quality consulting expertise for the core banking solution Avaloq and widened its customer base in Switzerland. The figures presented in this report include revenue of €0.58 million contributed by Asymo AG for the month of June. As a result of investment and integration costs, the newly acquired company did not make any significant contribution to earnings in this period.

The Software segment was sold as scheduled in May 2010 and is no longer included in the GFT Group's key financial figures for financial year 2010. The prior-year figures refer exclusively to the continued business divisions Resourcing and Services.

Against the backdrop of strong demand in all sectors for IT specialists, the GFT Group expects to continue its positive development of the first two quarters in the second half of the year. A significant boost to growth is expected from the industrial sector, which is likely to display a growing need for freelance IT specialists and engineers. This demand will add further impetus to growth in the Resourcing division in the months ahead. The Services division will continue to face adverse conditions in its market environment. In view of recent developments on the financial markets, the Executive Board expects the segment to continue its moderate growth in the second half of the year. The Executive Board therefore confirms its forecast for 2011 as a whole which it made in the Consolidated Financial Statements 2010 and expects total revenue of €275 million and earnings before taxes of €13 million for fiscal year 2011.

GFT share

Following a positive start to the trading year and a volatile first quarter, the beginning of the second quarter was dominated by the catastrophe in Japan, which caused share prices to slide around the world. The consequence was an abrupt change in the market mood: despite strong company earnings and encouraging quarterly reports, a feeling of uncertainty began to spread and the German blue-chip DAX index reverted to a phase of further consolidation. Although markets began to pick up again in the following weeks, investors remained cautious in view of various risk factors such as Europe's debt crisis, inflation fears and increased oil prices. By the end of the second quarter, the Greek sovereign debt problem was dominating market trading. There were also increasing signs that

growth was slowing. The IMF, for example, downgraded its forecast slightly for global economic growth in the current year from 4.4% to 4.3% in its June report. At the end of the reporting period, stock markets were caught between positive company data and numerous risk factors. Following a volatile performance over the first half of 2011, the DAX closed at 7,376 points on 30 June 2011 and was thus 7% up on its year-opening level. Similar to the DAX, Germany's tech stocks also fluctuated strongly during the period under review. The Tec-DAX index rose 5% in the first six months of 2011 to close at 894 points on 30 June 2011.

Share price performance in Euro (Xetra)

The GFT share was unable to escape these market fluctuations over the course of the first six months. After a strong start to the year and a volatile first quarter, the share began the second quarter modestly. Despite adverse market conditions, however, the share climbed 7% to €4.38 in April 2011. In line with stock exchange losses across the board, the GFT share subsequently dipped before finishing the period at €3.96 on 30 June 2011 – corresponding to a decline of 9% over the year so far.

Analysts at Landesbank Baden-Württemberg (LBBW) continue to uphold their "buy" recommendation for the GFT share with an upside target of €5.00. After publication of our interim report as at 31 March 2011, the analysts of Warburg Research GmbH raised their upside target from €5.30 to €5.60 and also maintained this value after the acquisition of Asymo AG. They also upheld their "buy" recommendation. The analysts of equinet Bank AG also advise investors to "buy" the GFT share; following the Asymo acquisition, they upheld their upside target of €5.10 – which had been downgraded after publication of the first quarter figures.

The Annual General Meeting of GFT AG was held on 31 May 2011 in Stuttgart and attended by 61% of voting capital. All items on the agenda were adopted with large majorities. According to a resolution adopted by the Annual General Meeting, the dividend of €0.15 per share proposed by the Executive Board and Supervisory Board was distributed on 1 June 2011.

Shareholder structure

The shareholder structure of GFT Technologies AG remained stable in the first six months of 2011: company founder Ulrich Dietz continues to hold 28.46% of shares. Maria Dietz owns 9.68% of shares. Dr. Markus Kerber, a former member of GFT's Supervisory Board, holds 5% of voting rights. The free float amounts to 56.86%.

Shareholder structure (%)

%
Ulrich Dietz	28.46
Maria Dietz	9.68
Dr. Markus Kerber	5.00

Free float 56.86

Information on the GFT share

	Q1–2 2011	Q1–2 2010
Year-opening quotation (Xetra)*	€4.33	€2.45
Closing quotation on 30 June (Xetra)*	€3.96	€3.10
Percentage change since year-opening	-9%	+27%
Highest price (Xetra)*	€4.86 (18/01/2011)	€3.74 (15/03/2010)
Lowest price (Xetra)*	€3.59 (13/06/2011)	€2.33 (04/01/2010)
Market capitalisation as of 30 June	€104.25 million	€81.61 million
Earnings per share from continued operations	€0.14	€0.13
Average daily trading volume in shares (Xetra and Frankfurt)*	38,516	56,373

*daily closing prices

ISIN	DE 0005800601
Market segment	Prime Standard
Designated sponsors	Landesbank Baden-Württemberg (LBBW) equinet Bank AG
Number of no-par value shares	26,325,946

Development of revenue

The GFT Group generated revenue of €141.80 million in the first six months of 2011 and thus exceeded the prioryear level by 24% (prev. year: €114.68 million). Revenue in the second quarter amounted to €74.50 million and was thus up strongly on the first-quarter figure of €67.30 million. The Resourcing division made a particularly strong contribution to this overall development with segment revenue of €83.54 million, representing year-on-year growth of 43% (prev. year: €58.44 million). The Services division reported slight growth to €58.26 million (prev. year: €56.21 million).

Revenue by segment

The particularly strong development of the Resourcing division is also reflected in the breakdown of revenue by segment: following a share of total revenue of 51% in the previous year, the Resourcing segment grew by 8 %-points to 59% in the period under review. This proportion is shared almost equally by the business fields Resource Management (30%; prev. year: 25%) and Third Party Management (29%; prev. year: 26%). The Services division's share fell correspondingly to 41% (prev. year: 49%).

In the period under review, the Resourcing segment generated revenue of €83.54 million and thus achieved strong year-on-year growth of 43% (prev. year: €58.44 million). Increased demand for freelance IT specialists across all countries and sectors benefited the segment's Resource Management business in particular, which recorded growth of 49% to €42.40 million (prev. year: €28.44 million). Third Party Management contributed €41.14 million to total segment revenue (prev. year: €30.00 million), representing growth of 37%.

The Services division succeeded in building on the high revenue level of the previous year. Consistently high demand from the financial sector helped raise revenue by 4% to €58.26 million (prev. year: €56.21 million). In addition to outsourcing services in Spain, demand was particularly strong for IT solutions from corporate and investment banking clients in the UK and USA.

Revenue by segment

%	Q1–2 2011
Resourcing	59%
Third Party Management	29%
Resource Management	30%
Services	41%

Revenue by country

%	Q1–2 2011
Germany	56%
UK	14%
Spain	11%
France	9%
Switzerland	3%
USA	2%
Other countries	5%

Revenue by country

Germany contributed €79.50 million to total revenue and thus remains the GFT Group's largest sales market. In comparison with the same period last year, revenue grew by €16.02 million, or 25% (prev. year: €63.48 million). This positive development was mainly due to increased revenue of the Resourcing division, which was able to benefit from the ongoing recovery of the industrial sector. Germany's share of total revenue grew from 55% in the previous year to 56%.

Demand from the financial sector remained high in the UK during the first six months of 2011. Local financial institutes continued to seek IT solutions for corporate and investment banking in the second quarter. Revenue increased by 9% year on year to €19.23 million (prev. year: €17.57 million). The UK was thus the GFT Group's second-largest market. Comparatively stronger revenue growth in other countries, however, led to a slight dip in the country's share of total revenue (14% compared to 15% last year).

The development of revenue in France was decisive for the increase in overall revenue of the GFT Group. In the first two quarters of 2011, a total of €15.49 million was generated with clients in this market, corresponding to strong year-on-year growth of 65% (prev. year: €9.38 million). The figure reflects increased demand for freelance IT specialists, both in the financial and industrial sectors. In addition to expanding our relations with existing clients, the Resourcing segment in France also added several notable new customers. The country's share of total revenue increased to 11% (prev. year: 8%).

Despite adverse market conditions, the GFT Group once again succeeded in expanding its traditionally strong revenues in Spain. The Services division benefited from stable long-term projects and demand from European financial institutes for outsourcing solutions. In the first six months of 2011, a total of €13.16 million was generated in Spain. This translates to year-on-year growth of 13% (prev. year: €11.64 million) and a share of total revenue of 9% (prev. year: 10%).

There was strong revenue growth of 63% in Switzerland during the period under review. Revenue generated with clients in Switzerland amounted to €4.85 million and thus €1.87 million more than in the previous year (€2.98 million). Sales in Switzerland were positively influenced by an expansion of activities in both divisions and by the acquisition of Asymo AG. The Swiss market continues to account for 3% of the GFT Group's total revenue.

As in the UK, the Services division in the USA was able to exploit the ongoing stable demand for IT solutions in the field of investment and corporate banking. Revenue in the first six months of 2011 amounted to €3.46 million, corresponding to growth of 5% over the previous year (€3.30 million). Projects in the USA thus accounted for 2% of total revenue (prev. year: 3%).

The proportion of total revenue generated by clients in "Other countries" – including Brazil, the Benelux states and Italy – amounted to 5% in the period under review (prev. year: 6%). The GFT Group generated revenue of €6.11 million with clients in these countries, corresponding to a year-on-year decline of 3% (prev. year: €6.33 million).

Revenue by industry

With a share of total revenue of 67%, the importance of the financial sector for the GFT Group fell slightly in the period under review (prev. year: 70%) but remains the most important industry. Projects with banks and insurance companies generated revenue of €94.80 million in the first two quarters of 2011. This represents an increase of 18% over the previous year (€80.02 million).

There was also strong growth in revenue with clients in the postal and logistics industry. At €10.09 million (prev. year: €7.85 million), revenue was up 29% year on year. In addition to long-term projects in the Services division, growth in this sector was driven above all by growing demand for freelance IT specialists in the Resourcing division. In the period under review, the postal and logistics industry continued to account for 7% of total revenue.

The recovery of the industrial sector, which is included in the "Others" category, and the resulting increase in demand for freelance IT experts and engineers, led to a significant increase in revenue in this sector. In the first six months of 2011, the GFT Group generated revenue of €36.91 million in this sector – 38% more than in the previous year (€26.81 million). As a result, its share of total revenue rose to 26% (prev. year: 23%). The Resourcing division succeeded in both expanding its project volume with existing clients as well as gaining new customers.

Earnings position

In the first six months of 2011, the GFT Group raised earnings before taxes (EBT) by 19% year on year. As of 30 June 2011, the Group reported EBT of €5.52 million (prev. year: €4.65 million). As in the preceding quarter, both segments benefited from strong demand and improved margins.

At the end of the first half-year 2011, earnings before interest and taxes (EBIT) amounted to €5.13 million (prev. year: €4.36 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €5.76 million on 30 June 2011 and were thus up 17% over the previous year (€4.93 million).

After deducting all expenses, the GFT Group thus generated net income of €3.63 million in the first six months of 2011 – 2% more than in the same period last year (€3.55 million). Increased tax expenses prevented any stronger increase.

Compared to the first quarter of 2011, the calculated tax ratio remained unchanged at 34% due to differences in the earnings of different countries. Income tax expenses also include reversals of deferred tax claims on loss carryforwards in Germany amounting to €0.33 million. In the previous year, the GFT Group's tax ratio was an unusually low 24%.

As a result, earnings per share improved slightly from €0.13 last year to €0.14 per share for the period under review. These figures are based on 26,325,946 outstanding shares.

Revenue by industry

Earnings by segments

Group earnings position by segment

In the first six months of 2011, the Services segment contributed €4.56 million to earnings – an increase of 14% over the previous year (€4.01 million). Segment earnings in the second quarter of 2011 amounted to €3.12 million (prev. year: €2.72 million). Consistently high demand for IT projects led to rising utilisation of staff in this segment. The acquisition of Asymo AG in Switzerland also made a positive impact. Expenditure in connection with its acquisition and integration is not attributed to the operating result of this business division.

The increased revenue generated by the Resourcing segment was also reflected in segment earnings. With €1.00 million earned in the second quarter alone, the segment result as of 30 June 2011 reached €1.65 million (prev. year: €0.86 million). The Resource Management business accounted for the major share of earnings. EBT in this field improved from €0.73 million last year to €1.43 million for the first six months of 2011 – an increase of 96%. There was also growth in earnings of the segment's Third Party Management business, from €0.13 million last year to €0.22 million in the period under review. As a result, the operating margin in this segment improved from 1.5% in the previous year to 2.0% this year.

Group earnings position by income and expense items

In the period under review, other operating income amounted to €1.38 million and was thus well below the prior-year figure of €2.08 million. Currency gains and the liquidation of provisions were far lower in the first six months of 2011 than in the previous year.

The cost of materials increased in line with strong demand in the Resourcing division to €84.48 million as of 30 June 2011. This corresponds to growth of 33% over the prior-year figure of €63.31 million.

Personnel expenses increased by 8% to €41.96 million and were thus largely in line with the rise in headcount over the first half of 2010 (prev. year: €38.69 million).

Depreciation of non-current intangible and tangible assets rose from €0.57 million last year to €0.63 million in the first six months of 2011 and were thus at a normal level for the GFT Group.

As of 30 June 2011, other operating expenses amounted to €10.87 million (prev. year: €9.82 million). The increase resulted mainly from increased sales expenditure for travel and advertising, as well as from a rise in administrative costs due to the expansion of business.

Financial position

Cash, cash equivalents and securities amounted to €18.09 million as of 30 June 2011 (prev. year: €26.44 million). The decline is due in part to the acquisition of Asymo AG in June 2011, which was financed exclusively from company funds. Further factors included the dividend payment and an increase in trade receivables.

Increased demand for freelance employees and their resulting acquisition led to a sharp rise in both trade receivables and trade payables. Trade receivables amounted to €76.34 million at the end of the first half of 2011 (prev. year: €56.19 million). Moreover, administrative problems in the purchasing system of a major client also hindered punctual payment. In line with the development of receivables, trade payables grew for the reasons stated above from €17.56 million last year to €26.95 million in the first half of 2011.

Cash flows from operating activities deteriorated in line with working capital in the first six months of 2011 and amounted to €-11.62 million (prev. year: €-8.59 million). As in previous years, cash flows from operating activities will gradually improve in the third quarter and become strongly positive by year-end.

At the end of the second quarter, cash flows from investing activities amounted to €-0.84 million. The figure includes proceeds from the disposal of financial assets and a similar amount of payments in connection with the acquisition of Asymo AG in Switzerland. The prior-year figure of €-11.08 million had resulted from the acquisition of long-term financial assets in the second quarter of 2010.

Cash flows from financing activities mainly refer to dividend payments to the company's owners and amounted to €-3.54 million at the end of the second quarter of 2011 (prev. year: €-2.23 million). The difference resulted from the increase in dividend from €0.10 per share for 2009 to €0.15 per share for fiscal year 2010, paid in the second quarter of 2011.

Asset position

The balance sheet total of the GFT Group at the end of the second quarter of 2011 was up by €6.51 million to €135.09 million. At year-end 2010, the figure had amounted to €128.58 million.

On the asset side, non-current assets fell slightly from €42.19 million at year-end 2010 to €41.87 million. Within this item, there was an increase in goodwill following the acquisition of Asmyo AG in Switzerland. Non-current financial assets fell by almost the same amount. There was a disproportionately strong increase, however, in current assets to €93.22 million (31 December 2010: €86.39 million). Due to strong growth in the Resourcing segment and delayed payments from a major client, trade receivables rose sharply to €76.34 million at the end of the first six months (31 December 2010: €54.80 million). This was offset by a fall in cash and cash equivalents due to the dividend payment and acquisition of Asymo AG in the second quarter of 2011.

On the liabilities side, equity changed only slightly from €71.27 million as of 31 December 2010 to €71.17 million on 30 June 2011. Debt increased from €57.31 million as of 31 December 2010 to €63.92 million on 30 June 2011. The rise resulted from a number of smaller items belonging to current liabilities. Compared with year-end 2010, trade payables fell slightly to €26.95 million (31 December 2010: €27.87 million).

There was consequently a slight decline in the equity ratio to 53% (31 December 2010: 55%).

Group balance sheet structure

ASSETS in € million	31/12/ 2010	30/06/ 2011	30/06/ 2011	31/12/ 2010	EQUITY & LIABILITIES in € million
Cash, cash equivalents and securities	40.32	18.09	61.64	55.22	Current liabilities
Other current assets	58.77	81.41	2.28	2.09	Non-current liabilities
Other non-current assets	29.49	35.59	71.17	71.27	Equity capital
	128.58	135.09	135.09	128.58

Employees

At the end of the second quarter, the GFT Group employed a total of 1,317 people. This represents an increase of 108 persons or 9% year on year. The number of employees is calculated on the basis of full-time staff, while part-time staff are included on a pro rata basis. The increase in headcount reflects the consistently high utilisation of development capacity.

Compared with the same date last year, staff employed in the Services division grew by 105 persons. As of 30 June 2011, the segment now employs 10% more people (1,178) than in the previous year.

In the Resourcing division, headcount grew from 97 last year to 99 at the end of the second half of 2011.

The "Others" category comprises 40 persons belonging to the holding company – one more than at this time last year.

Employees by division as of 30 June

	2011	2010
Services	1,178	1,073
Resourcing	99	97
Others	40	39
Total	1,317	1,209

The number of people employed in Germany increased by 5%, from 267 on 30 June 2010 to 280 at the end of the second quarter of 2011. The proportion of staff employed outside Germany thus amounted to 79% (1,037 employees), compared to 78% on the same date last year.

The strong increase in staff employed in Switzerland results from the acquisition of Asymo AG. By taking over the Swiss company, GFT gained 23 new employees.

The average number of freelancers employed in the first half of the year rose from 1,140 last year to 1,383 persons.

Employees by country as of 30 June

2011	2010
280	267
157	143
18	15
30	24
51	25
778	732
3	3
1,317	1,209
79%	78%

Research and development

In the first two quarters of 2011, the GFT Group invested €0.98 million (prev. year: €0.65 million) in its R&D activities. This corresponds to a year-on-year increase of 51%. Personnel costs accounted for the largest share of this total (89% or €0.87 million).

This strong increase results from the following strategic innovation projects initiated in 2010 and continued in the first half of 2011:

a-touch: GFT will continue to drive the development of this touch banking solution for financial advisors. a-touch is an intelligent IT application which also allows the use of modern mobile devices for financial advising in the field of private banking and wealth management.

SAP Competence Centre: with its SAP Competence Centre, GFT helps banks to convert their systems to SAP software. Clients benefit from individually developed application possibilities for their transformation and migration process.

Mobile Finance: since 2009, GFT has been developing business models for mobile devices at its Mobile Finance Competence Centre and developing ideas for the mobilisation of business processes.

The "Finance IT" initiative aimed at developing innovative IT solutions for banks has been completed.

In June 2011, GFT was able to renew the CMMI® (Capability Maturity Model Integration) Level 3 certificate which it first received in 2008. The company has thus cemented the foundations for consistently high quality in its global development efforts.

Subsequent events

No events of major significance to GFT occurred after the balance sheet date as at 30 June 2011.

Opportunity and risk report

In the first six months of 2011, there were no material changes with regard to the comprehensive discussion of opportunities and risks provided in the Management Report accompanying the 2010 Consolidated Financial Statements. The GFT Group's risk position is therefore unchanged.

Forecast report

The economic upturn is not likely to continue with the momentum expected at the beginning of 2011. As the potential risks began to accumulate over the course of the second quarter, experts at the International Monetary Fund (IMF) predicted a slight slowdown in the pace of global economic growth in their latest report. The IMF now forecasts growth of 4.3% in the current year and 4.5% in 2012. Economists believe the reasons for this loss of momentum may be the setback to the US market's recovery, although a more modest outlook for China has also tempered expectations.

The high level of sovereign debt among certain Euro zone nations is also giving cause for concern. The downgrading of Greece, Ireland and Portugal by the world's leading rating agencies reflects market concerns that necessary budget consolidations have not yet been implemented. The IMF has urged the nations in question to carry out much-needed structural reforms and warned against a potential spread of the debt crisis. For the current year, the IMF's economists predict that the Euro zone will grow by 2.0% and have thus upgraded their April forecast of 1.6%. This European growth will be driven above all by Germany and France. For 2012, however, the IMF has downgraded its April forecast by 0.1 %-point and now expects the Euro zone to grow by 1.7%.

The IMF's economists have also identified signs of a slowdown in Germany for the coming year. Following growth of 3.2% in the current year, the German economy is expected to grow by 2.0% in 2012 – 0.1 %-points less than the IMF forecast in April 2011. The strong order position in Germany at present may suffer from a weakening of the current dynamic demand from overseas markets.

The German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) has not changed its half-year forecast for the ICT market in the current and coming fiscal years. The association expects market volume to grow by 2.3% to €133.0 billion in 2011 and by 2.4% to €136.2 billion in 2012. BITKOM forecasts above-average growth in revenue for the IT Services segment with a market volume of €34.2 billion in 2011 and €35.5 billion in 2012. However, there has also been a change in expectations among IT service companies interviewed for the association's latest survey on the sector mood: whereas in April 2011, 89% of companies expected rising revenues, the figure had fallen to 82% by July 2011.

The opportunities offered by the economic upswing and the challenges presented by developments on the world's financial markets will shape the GFT Group's progress over the remaining months of the current year. Even if economic growth begins to slow – as forecast by many experts – this will affect different sectors and nations in different ways. With its wide range of services and international alignment, the GFT Group can react to any cyclical changes in the capital spending of certain sectors by utilising the specific possibilities of its Services and Resourcing segments to dampen such effects.

The Resourcing division will continue to benefit strongly from increased demand for freelance IT specialists and engineers across all nations and sectors during 2011. With the growing stability of the industrial sector, this trend is likely to become even stronger. Thanks to its international network of specialists, GFT is capable of meeting the needs of numerous companies for flexible, highly skilled specialists. In the coming months, the Resourcing segment expects dynamic growth rates above all in France, Germany, the UK and Switzerland. Apart from expanding its projects with existing clients, the division also proved highly successful in acquiring new customers in the first two quarters. It is likely that a sizable proportion of revenue in the second half of 2011 will also be generated with new clients.

Against the backdrop of a challenging market environment in the financial sector, the Services division expects to maintain its stable development at a high level in the remaining months of fiscal year 2011. The GFT Group is closely monitoring the potential risks which may result from reduced investment in light of the Euro crisis and

will continue to exploit any growth opportunities which arise. These include in particular outsourcing services and IT solutions for regulatory compliance, as well as modern client management systems. With its innovative and secure solutions for investment consulting and mobile banking applications, as well as the expertise gained from its acquisition of Asymo AG, GFT is well positioned to maintain its growth trajectory – also in the Services division.

The GFT Group therefore expects to continue its steady growth in the rest of 2011 and confirms the forecast made in the Consolidated Financial Statements 2010: the Executive Board expects total revenue of €275 million and earnings before taxes of €13 million in fiscal year 2011.

Stuttgart, 9 August 2011

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

Consolidated Statement of comprehensive Income

for the period from 1 January to 30 June 2011 GFT Technologies Aktiengesellschaft, Stuttgart

Partial Statement Affecting Net Income: Consolidated Income Statement

	Half-year		Second quarter
€	01/01/– 30/06/2011	01/01/– 30/06/2010	01/04/– 30/06/2011	01/04/– 30/06/2010
Revenue	141,803,332.84	114,679,437.63	74,500,653.63	60,250,126.07
Other operating income	1,384,702.41	2,078,415.66	1,037,722.18	1,200,235.97
	143,188,035.25	116,757,853.29	75,538,375.81	61,450,362.04
Cost of materials
a) Expenses for raw materials and supplies and for purchased goods	4,855.15	14,105.03	254.41	13,235.92
b) Costs of purchased services	84,480,133.99	63,292,764.15	45,232,000.17	33,368,017.98
	84,484,989.14	63,306,869.18	45,232,254.58	33,381,253.90
Personnel expenses
a) Salaries and wages	34,771,316.28	32,453,953.94	17,307,721.99	16,293,976.66
b) Social security and expenditures for retirement pensions	7,184,298.86	6,233,083.84	3,594,228.16	3,282,223.06
	41,955,615.14	38,687,037.78	20,901,950.15	19,576,199.72
Depreciation on non-current intangible assets and of tangible assets	633,522.30	571,208.01	320,099.80	288,149.19
Other operating expenses	10,865,192.17	9,822,637.65	5,765,098.24	5,345,064.42
Result from operating activities	5,248,716.50	4,370,100.67	3,318,973.04	2,859,694.81
Other interest and similar income	405,279.98	296,694.21	246,073.28	172,153.91
Profit share from associates	1,546.34	-13,471.45	4,363.36	-4,373.52
Depreciation on securities	121,523.93	0.00	57,649.88	0.00
Interest and similar expenses	12,447.47	8,207.95	10,417.07	3,385.90
Financial result	272,854.92	275,014.81	182,369.69	164,394.49
Earnings before taxes	5,521,571.42	4,645,115.48	3,501,342.73	3,024,089.30
Taxes on income and earnings	1,889,206.56	1,091,453.14	1,221,983.34	627,659.48
Net income from continued operations	3,632,364.86	3,553,662.34	2,279,359.39	2,396,429.82
Net loss from discontinued operations	0.00	-269,230.17	0.00	-234,215.78
Net income	3,632,364.86	3,284,432.17	2,279,359.39	2,162,214.04
– attributable to non-controlling equity holders	0.00	0.00	0.00	0.00
– attributable to equity holders of the parent	3,632,364.86	3,284,432.17	2,279,359.39	2,162,214.04
Net earnings per share – undiluted	0.14	0.12	0.09	0.08
Net earnings per share – diluted	0.14	0.12	0.09	0.08
Net earnings per share from continued operations – undiluted	0.14	0.13	0.09	0.09
Net earnings per share from discontinued operations – diluted	0.14	0.13	0.09	0.09

Partial Statement Not Affecting Net Income: Consolidated Income Statement

	Half-year		Second quarter
€	01/01/– 30/06/2011	01/01/– 30/06/2010	01/04/– 30/06/2011	01/04/– 30/06/2010
Net Income	3,632,364.86	3,284,432.17	2,279,359.39	2,162,214.04
Financial assets available for sale (securities):
– Change of fair value recognised in equity during the period	65,960.51	238,500.00	-87,839.49	-18,150.00
– Reclassification amounts to the income statement	0.00	-292,800.00	0.00	-292,800.00
	65,960.51	-54,300.00	-87,839.49	-310,950.00
Exchange differences on translating foreign operations:
– Profits/losses during the period	137,922.19	238,555.27	269,397.20	159,902.61
– Reclassification amounts to the income statement	0.00	0.00	0.00	0.00
	137,922.19	238,555.27	269,397.20	159,902.61
Income taxes on components of other result	16,559.06	24,920.00	16,559.06	70,280.00
Other result	220,441.76	209,175.27	198,116.77	-80,767.39
Total result	3,852,806.62	3,493,607.44	2,477,476.16	2,081,446.65
– thereof attributable to non-controlling shareholders	0.00	0.00	0.00	0.00
– thereof attributable to shareholders of parent company	3,852,806.62	3,493,607.44	2,477,476.16	2,081,446.65

Consolidated Balance Sheet

as at 30 June 2011

GFT Technologies Aktiengesellschaft, Stuttgart

Assets

€	30/06/2011	31/12/2010	31/12/2009
Non-current assets
Intangible assets
Licences, industrial property rights and similar rights	562,976.24	431,980.03	364,535.53
Goodwill	26,747,788.93	20,367,546.07	20,365,010.57
	27,310,765.17	20,799,526.10	20,729,546.10
Tangible assets
Other equipment, office and factory equipment	2,607,057.98	2,601,922.52	2,044,691.89
Construction on foreign property	79,572.87	104,365.67	146,776.26
	2,686,630.85	2,706,288.19	2,191,468.15
Financial assets
Securities	6,275,185.70	12,702,271.24	0.00
Financial assets, accounted for using the equity method	45,555.29	44,008.95	36,165.05
Investments	0.00	0.00	0.00
	6,320,740.99	12,746,280.19	36,165.05
Other assets	405,595.53	404,771.40	349,408.58
Income tax assets	579,743.86	585,029.38	655,816.14
Deferred tax assets	4,562,188.44	4,948,002.63	5,813,304.61
	41,865,664.84	42,189,897.89	29,775,708.63
Current assets
Trade receivables	76,338,336.48	54,799,670.75	41,757,487.92
Securities	1,584,100.00	1,384,000.00	2,235,800.00
Current tax assets	560,732.91	243,550.42	204,920.81
Cash and cash equivalents	10,233,698.83	26,232,995.13	35,471,848.76
Other assets	4,507,482.05	3,727,586.93	1,886,174.47
	93,224,350.27	86,387,803.23	81,556,231.96
Non-current assets and disposal groups held for sale	0.00	0.00	2,049,496.73
	93,224,350.27	86,387,803.23	83,605,728.69
	135,090,015.11	128,577,701.12	113,381,437.32

Shareholders' Equity and Liabilities

€	30/06/2011	31/12/2010	31/12/2009
Shareholders´equity
Equity attributable to equity holders of the parent
Share capital	26,325,946.00	26,325,946.00	26,325,946.00
– Conditional capital €7,500,000.00 (prev. year: €8,280,000.00)
Capital reserve	42,147,782.15	42,147,782.15	42,147,782.15
Retained earnings
Other retained earnings	10,243,349.97	10,243,349.97	8,543,349.97
Changes in equity not affecting net income
Foreign currency translations	673,233.20	535,311.01	140,577.64
Reserve of market assessment for securities	-345,280.43	-427,800.00	-410,420.00
Consolidated balance sheet loss	-7,870,939.17	-7,554,412.13	-10,995,236.23
	71,174,091.72	71,270,177.00	65,751,999.53
Interests of non-controlling equity holders	0.00	0.00	0.00
	71,174,091.72	71,270,177.00	65,751,999.53
Liabilities
Non-current liabilities
Provisions for pensions	676,225.40	652,225.40	457,472.44
Other provisions	925,472.00	969,795.00	879,895.84
Deferred tax liabilities	678,962.56	469,197.24	601,198.65
	2,280,659.96	2,091,217.64	1,938,566.93
Current liabilities
Other provisions	20,741,087.35	18,195,205.23	13,568,351.01
Income tax liabilities	2,352,838.68	1,285,617.34	1,170,106.70
Financial liabilities	271,697.47	0.00	0.00
Trade payables	26,949,011.09	27,873,659.18	23,277,976.61
Other liabilities	11,320,628.84	7,861,824.73	5,999,709.79
	61,635,263.43	55,216,306.48	44,016,144.11
Liabilities directly associated with non-current assets and disposal groups held for sale	0.00	0.00	1,674,726.75
	61,635,263.43	55,216,306.48	45,690,870.86
	63,915,923.39	57,307,524.12	47,629,437.79
	135,090,015.11	128,577,701.12	113,381,437.32

19

Consolidated Statement of Changes in Equity

as at 30 June 2011

GFT Technologies Aktiengesellschaft, Stuttgart

€	Subscribed	Capital	Retained
	capital	reserve	earnings
			Other
			retained
			earnings
As at 01/01/2010	26,325,946.00	42,147,782.15	8,543,349.97
Dividend payment May 2010
Total income and expenses for the period 01/01/–30/06/2010
As at 30/06/2010	26,325,946.00	42,147,782.15	8,543,349.97
Dividend payment May 2010
Total income and expenses for the period 01/01/–31/12/2010
Allocations to retained earnings 2010
– to other retained earnings			1,700,000.00
As at 31/12/2010	26,325,946.00	42,147,782.15	10,243,349.97
Dividend payment June 2011
Total income and expenses for the period 01/01/–30/06/2011
As at 30/06/2011	26,325,946.00	42,147,782.15	10,243,349.97

Subscribed Capital Retained capital reserve earnings Other retained	Changes in equity not affecting results Foreign currency	Market assessment	Consolidated balance sheet loss	Equity attributable to equity holders of the parent	Non-controlling equity holders	Total share capital
earnings As at 01/01/2010 26,325,946.00 42,147,782.15 8,543,349.97	translations 140,577.64	for securities -410,420.00	-10,995,236.23	65,751,999.53	0.00	65,751,999.53
Dividend payment May 2010			-2,632,594.60	-2,632,594.60	0.00	-2,632,594.60
Total income and expenses for the period 01/01/–30/06/2010	238,555.27	-29,380.00	3,284,432.17	3,493,607.44	0.00	3,493,607.44
As at 30/06/2010 26,325,946.00 42,147,782.15 8,543,349.97	379,132.91	-439,800.00	-10,343,398.66	66,613,012.37	0.00	66,613,012.37
Dividend payment May 2010			-2,632,594.60	-2,632,594.60	0.00	-2,632,594.60
Total income and expenses for the period 01/01/–31/12/2010	394,733.37	-17,380.00	7,773,418.70	8,150,772.07	0.00	8,150,772.07
1,700,000.00			-1,700,000.00	0.00	0.00	0.00
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
			-3,948,891.90	-3,948,891.90		-3,948,891.90
Total income and expenses for the period 01/01/–30/06/2011	137,922.19	82,519.57	3,632,364.86	3,852,806.62	0.00	3,852,806.62

As at 30/06/2011 26,325,946.00 42,147,782.15 10,243,349.97 673,233.20 -345,280.43 -7,870,939.17 71,174,091.72 0.00 71,174,091.72

Consolidated Cash Flow Statement

for the period from 1 January to 30 June 2011 GFT Technologies Aktiengesellschaft, Stuttgart

	Half-year
€	01/01/– 30/06/2011	01/01/– 30/06/2010
Net income	3,632,364.86	3,284,432.17
Depreciation on non-current intangible and tangible assets	633,522.30	588,074.01
Changes in provisions	2,527,292.96	4,869,129.41
Other non-cash expenses/income	69,610.69	194,225.21
Profit/loss from the disposal of long-term tangible and intangible assets as well as financial assets	19,986.31	-301,000.00
Changes in trade receivables	-20,197,806.95	-14,385,495.28
Changes in other assets	-680,670.01	-743,331.26
Changes in trade liabilities and other liabilities	2,374,753.84	-2,091,272.24
Cash flow from operating activities	-11,620,946.00	-8,585,237.98
Cash receipts from sale of tangible assets	450.00	0.00
Cash payments to acquire tangible assets	-497,679.97	-429,589.02
Cash payments to acquire non-current intangible assets	-238,531.11	-74,131.02
Cash receipts from sale of financial assets	6,226,500.00	0.00
Cash payments to acquire financial assets	0.00	-10,417,448.83
Cash receipts from sale of consolidated companies net of cash and cash equivalents disposed of 1	0.00	-1,307,384.44
Cash payments from acquisition of consolidated companies net of cash and cash equivalents acquired1	-6,329,816.98	0.00
Cash receipts for the short-term financial management of cash investments	0.00	1,150,000.00
Cash flow from investing activities	-839,078.06	-11,078,553.31
Payments to shareholders	-3,948,891.90	-2,632,594.60
Cash receipts from taking out financial loans	271,697.47	134,903.43
Other changes in equity	137,922.19	263,475.27
Cash flow from financing activities	-3,539,272.24	-2,234,215.90
Change in cash funds from cash-relevant transactions	-15,999,296.30	-21,898,007.19
Cash funds at the beginning of the period	26,232,995.13	36,200,628.61
Cash funds at the end of the period	10,233,698.83	14,302,621.42

1 The item concerns discontinued operations.

Notes to the Interim Financial Statements

as at 30 June 2011 GFT Technologies Aktiengesellschaft, Stuttgart

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

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 2010). 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 International 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 2010. New or amended standards and interpretations to be applied as of the beginning of the financial year 2011 did not have any major effect on the Interim Financial Statements.

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

The following changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 31 December 2010:

On 10 February 2011, GFT UK Limited, London, founded the company GFT UK Invest Limited, domiciled in London. The newly formed company has been included in the consolidated group since 10 February 2011. Since its foundation, GFT UK Invest Limited has not yet developed any operating activities of note; its initial inclusion in the consolidated accounts had no significant impact on the assets, financial and earnings position of the Group.

On 9 June 2011, GFT AG acquired all shares in Asymo AG, Adliswil, Switzerland. The aforementioned company was initially included in the consolidated group as of the acquisition date of 9 June 2011. In the period 1 January 2011 to 30 June 2011, its contribution to revenues of the GFT Group amounted to €578 thousand with a contribution to net income of this period of €159 thousand. As of 30 June 2011, Asymo AG accounted for 2.3% of the Group's total assets. Initial inclusion in the consolidated accounts therefore had an impact on the Group's assets, financial and earnings position and impaired comparability with prior-year figures.

The following changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 30 June 2010:

On 13 August 2010, the memorandum of association of subsidiary GFT Business Development GmbH, Eschborn, was extensively altered. This included a change in its name to Youdress GmbH and the relocation of its registered office to Stuttgart. These changes became effective on 1 October 2010. Subsequently on 13 August 2010, GFT AG sold 50% of shares in GFT Business Development GmbH. GFT Business Development GmbH was deconsolidated on 13 August 2010 and has since been carried as an associated company (named Youdress GmbH), whose shares are carried in the balance sheet according to the equity method. In the financial years 2010 and 2009, GFT Business Development GmbH accounted for 0.0% of Group revenues. As of 31 December 2009 and on the date of divestment, its share in Group assets amounted to 0.0%. The deconsolidation of GFT Business Development GmbH had no material effect on the assets, financial and earnings position of the Group; income from the sale amounted to €11 thousand.

On 13 August 2010, GFT AG also acquired all shares in the previously non-operating company Platin 569. GmbH, Frankfurt am Main, which has been trading as GFT Innovations GmbH with registered office in Stuttgart since 23 September 2010. The above company was first consolidated as of its date of acquisition on 13 August 2010. Its contribution to consolidated revenues of the GFT Group in the period 1 January to 31 December 2010 amounted to €0 thousand with an effect of the net income 2010 of €-215 thousand. As of 31 December 2010, the share in Group assets of GFT Innovations GmbH amounted to 0.0%. The initial consolidation of GFT Innovations GmbH had no material effect on the assets, financial and earnings position of the Group.

Discontinued operations ······························································································································· ··························································································································

The GFT Group intended to dispose of its business activities in the Software division. The Executive Board of GFT AG had adopted a respective disposal plan and had been actively seeking a buyer since November 2009; the disposal was expected to be completed in the second quarter of 2010. Most of the activities in this business division, and the respective employees, were pooled with the subsidiary GFT inboxx GmbH, Hamburg, Germany. All shares in this subsidiary were to be sold. Moreover, the Software division of GFT AG included disclosed software rights which are also to be sold. The Software division to be sold was identical with the Software segment, which is disclosed separately in segment reporting.

Discontinuation of the business division will take the form of a disposal as a whole. As the division intended for disposal also represents a disposal group as defined by IFRS 5, the disclosure and measurement regulations of IFRS 5 have been applied.

The discontinuation of the business division in the second quarter of the financial year 2010 was realised as follows:

Business combinations during the fiscal year ······························································································································· ·································································

Business combination Asymo AG, Adliswil, Switzerland

On 9 June 2011 (acquisition date), GFT AG acquired 100% of equity shares with voting rights in Asymo AG, Adliswil, Switzerland, and thus gained control of the acquired company. Asymo AG is a Swiss IT consultancy for the core banking solution Avaloq.

The main reasons for the business combination were to strengthen GFT's position as an IT specialist for banks in the important Swiss market and to expand its portfolio of services by adding top-quality consultancy expertise in the field of standard software for banks. The factors contributing to the acquisition costs which were used in the measurement of goodwill were as follows:

• a) the outstanding skills and activities of Asymo AG's employees;
• b) the existing positioning of Asymo AG with customers for core banking applications, including existing general agreements;
• c) the expected synergies between GFT and Asymo AG in the joint development of existing accounts and new markets;
• d) intangible assets which are not classified for separate measurement.

The following figures are preliminary and will change as certain purchase price components have not yet been set or depend on future developments and other quantitative examinations, e.g. the identification of transferred intangible assets, have not yet been conducted.

In a purchase agreement dated 14 May 2010, the software rights of GFT AG were sold to a non-Group company. In a share purchase agreement also dated 14 May 2010, GFT AG sold all shares in the subsidiary GFT inboxx GmbH to the same buyer; the Software segment was thus disposed of. All assets and liabilities of the Software segment were transferred on 14 May 2010, with the exception of pension obligations and the respective securities which the Group retains in contrast to the original plan due to the developing sales process; this decision had no impact on the net income of the financial year 2010. The disposal of the Software segment resulted in a loss of €464 thousand.

The net loss after taxes of the discontinued operation is disclosed in a separate line of the Consolidated Statement of Comprehensive Income (2010, Consolidated Income Statement section). The Consolidated Balance Sheet also includes assets and liabilities pertaining to discontinued operations, summarised as separate items (31 December 2009).

The fair value of the total transferred consideration valid on the date of purchase amounts to €7.9 million; it refers in full to the cash offered. In addition to this consideration as of the purchase date, there are agreements concerning considerations in return which depend on the future earnings of the acquired company; due to their uncertainty, no amount was recognised at the date of purchase. The range of these considerations in return not yet recognised is between CHF 0 and CHF 8 million.

The acquired receivables refer to trade receivables. The fair value of acquired receivables amounts to €1,341 thousand, their gross amount is €1,385 thousand. As of the acquisition date, receivables expected to be uncollectible amount to €44 thousand.

The amounts for each major group of acquired assets and assumed liabilities at the time of acquisition are shown below:

€ thsd.	Carrying value
	= fair value
Non-current assets
Tangible assets	34
Current assets
Trade receivables	1,341
Other assets	26
Cash and cash equivalents	1,554
	2,921
	2,955
Liabilities
Current liabilities
Provisions	372
Liabilities	1,079
	1,451
Acquired net assets	1,504
Acquisition costs	7,884
Goodwill	6,380

The resulting goodwill was allocated to the Services segment (cashgenerating unit Services – Finance & Insurance).

The acquired company was included in the Consolidated Statement of Comprehensive Income (Consolidated Income Statement section) from the acquisition date until 30 June 2011 with revenue of €578 thousand and net income of €159 thousand.

On the assumption that the acquisition date for all business combinations during the reporting period was the beginning of this period, the revenue of the GFT Group in the reporting period 1 January 2011 to 30 June 2011 would have been €144.81 million and earnings (net income) €4.60 million.

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

For the changes in equity capital between 1 January 2011 and 30 June 2011, we refer to the Consolidated Statement of Changes in Equity which is disclosed separately.

As of 30 June 2011, 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 2010). These shares are bearer shares and all grant equal rights.

In May 2011, a dividend of €0.15 per share was distributed to shareholders, totalling €3,949 thousand, from the balance sheet profit of the parent company GFT AG (May 2010: dividend of €0.10 per share, totalling €2,633 thousand).

As of 30 June 2011, 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 2011 to 30 June 2011.

The following changes in the Company's authorised and conditional capital were made between 1 January and 30 June 2011 relative to 31 December 2010.

Authorised capital

The Company's existing authorised capital, as defined in § 4 (5) of the Company's Articles, expired on 22 May 2011; the authorisation for this authorised capital was cancelled at the Annual General Meeting on 31 May 2011. New authorised capital was created as follows:

In accordance with the resolution passed by the Annual General Meeting of 31 May 2011, the Executive Board is authorised to increase the share capital on or before 30 May 2016, with the consent of the Supervisory Board, through the issuance of new bearer shares against contributions in cash or in kind up to a total of €10,000,000.00 on one or more occasions (Authorised capital). The Executive Board is authorised to exclude shareholders' subscription rights with the consent of the Supervisory Board in the following cases:

• to waive subscription rights for fractional amounts;

• for capital increases against contributions in kind in order to grant shares for the purpose of acquiring companies or holdings in companies;

• in the event of a capital increase against cash contributions, provided that the issue price of the new shares is not significantly lower than the stock exchange price and provided that the proportionate amount of share capital attributable to the new shares for which subscription rights are excluded, does not exceed ten percent of share capital, neither at the time at which this authorisation becomes effective nor at the time at which it is exercised;

• in the event of a capital increase for the issue of employee shares, provided that the proportionate amount of share capital attributable to the new shares, for which subscription rights are excluded, does not exceed ten percent of share capital, neither at the time at which this authorisation becomes effective nor at the time at which it is exercised.

The Executive Board is authorised to establish additional details for the execution of a capital increase from authorised capital with the consent of the Supervisory Board.

As at 30 June 2011, there was therefore unutilised authorised capital in the amount of €10,000,000.00 (31 December 2010: €10,000,000.00).

Conditional capital

By resolution of the Annual General Meeting on 31 May 2011, Conditional capital I/1999 amounting to €780,000.00 was cancelled. Conditional capital II/2007 amounting to €7,500,000.00 continues to exist.

As at 30 June 2011, there was therefore total conditional capital of €7,500,000.00 (31 December 2010: €8,280,000.00).

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

GFT has identified the three segments Services, Resourcing, and (until 14 May 2010) Software as reportable 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 Software segment was sold in May 2010; we refer to the explanations on discontinued operations.

The products and services with which the reportable segments generate their income can be characterised as follows: all activities in connection with IT solutions (services and projects) are aggregated in the Services segment. The Resourcing segment focuses on the placement of freelance IT specialists. The Software segment concerned the internal development of software products, their distribution, and associated services. 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 taxes). 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 Statements. It also includes disclosures concerning revenue from external clients for each group of comparable products and services.

The reconciliation of the segment figures to the corresponding figures in the Consolidated Financial Statements is as follows:

€ thsd.	01/01/–	01/01/–
	30/06/2011	30/06/2010
Total segment revenue	145,086	124,592
Elimination of intersegment revenue	-3,283	-8,843
Group revenue	141,803	115,749
Total segment results (EBT)	6,213	4,807
Non-attributed expenses/income of Group HQ	-742	-152
Non-attributed income for elimination of interim results	51	0
Group result before taxes	5,522	4,655

€ thsd.	30/06/2011	30/06/2010
Total segment assets	121,434	96,167
Non-attributed assets of Group HQ	94	74
Securities	7,859	12,140
Assets from income taxes	5,703	6,853
Group assets	135,090	115,234
Total segment liabilities	60,630	45,963
Non-attributed liabilities of Group HQ	254	285
Liabilities from income taxes	3,032	2,373
Group liabilities	63,916	48,621

The reconciliation discloses items which per definition are not components of the segments. In addition, non-attributed items of Group HQ, e.g. from centrally managed issues, are also contained. 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 sales to external clients 1		Non-current intangible and tangible assets
€ million	01/01/– 30/06/2011	01/01/– 30/06/2010	30/06/2011	30/06/2010
Germany	79.50	64.27	28.35	21.58
UK	19.23	17.57	0.13	0.16
Spain	13.16	11.64	0.98	0.67
France	15.49	9.38	0.07	0.05
USA	3.46	3.30	0.00	0.00
Switzerland	4.85	2.98	0.17	0.09
Other countries	6.11	6.61	0.30	0.34
Total2	141.80	115.75	30.00	22.89

1 Determined by client location

2 Total company

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/– 30/06/2011	01/01/– 30/06/2010	01/01/– 30/06/2011	01/01/– 30/06/2010
Client 1	66.86	51.96	Services, Resourcing	Services, Resourcing, Software

Segment report

GFT Technologies Aktiengesellschaft, Stuttgart

	Services		Software
€ thsd.	30/06/2011	30/06/2010	30/06/2011	30/06/2010
External sales	58,259	56,213	-	1,101
Inter-segment sales	-	8	-	32
Total revenues	58,259	56,221	0	1,133
Depreciation	-496	-491	0	-17
Non-cash income/expenditure other than depreciation	-23	30	0	-254
Interest income	56	109	0	0
Interest expenses	-16	-86	0	0
Share of net profits of associated companies
reported according to the equity method	2	-13	0	0
Segment result (EBT)	4,564	4,014	0	-62
Segment assets	68,453	61,661	0	0
Investment in associates reported according to the equity method	46	23	0	0
Investment in non-current intangible and tangible assets	6,960	415	0	10
Segment liabilities	21,397	17,194	0	0

Consolidated			Eliminations		Total		Resourcing
30/06/2010	30/06/2011	30/06/2010	30/06/2011	30/06/2010	30/06/2011	30/06/2010	30/06/2011
115,749	141,803			115,749	141,803	58,435	83,544
0		-8,843	-3,283	8,843	3,283	8,803	3,283
115,749	141,803	-8,843	-3,283	124,592	145,086	67,238	86,827
-588	-634	-18	-20	-570	-614	-62	-118
-70 -194		30	-47	-224	-23	0	0
405 297		186	345	111	60	2	4
-12		108	52	-116	-64	-30	-48
2 -13		0	0	-13	2	0	0
4,656	5,522	-151	-691	4,807	6,213	855	1,649
115,234	135,090	19,067	13,656	96,167	121,434	34,506	52,981
46 23		0	0	23	46	0	0
504	7,116	16	21	488	7,095	63	135
48,621	63,916	2,658	3,286	45,963	60,630	28,769	39,233

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

As of 30 June 2011, there were no significant changes to contingencies and other financial commitments compared to the Consolidated Financial Statements as at 31 December 2010.

Investments ······························································································································· ······························································································································· ·······························

During the period 1 January to 30 June 2011, the GFT Group invested €6,618 thousand in intangible assets (1 January to 30 June 2010: €74 thousand), of which goodwill accounted for €6,380 thousand (1 January to 30 June 2010: €0 thousand), and €498 thousand in tangible assets (1 January to 30 June 2010: €430 thousand).

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

Compared to the disclosures made in the Notes to the Consolidated Financial Statements as at 31 December 2010, there were no changes in the composition of related parties nor in relations with such parties apart from the following. Dr. Paul Lerbinger and Dr. Ing. Andreas Bereczky were elected as new members of the Supervisory Board. Mr. Franz Niedermaier retired from the Supervisory Board.

Stuttgart, 9 August 2011

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

Responsibility statement

To the best of our knowledge, and in accordance with the applicable interim reporting principles, the consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group in the remaining fiscal year 2010.

Stuttgart, 9 August 2011

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

Review report

To GFT Technologies Aktiengesellschaft, Stuttgart

We have reviewed the condensed consolidated interim financial statements – comprising the condensed balance sheet, condensed income statement and statement of comprehensive income, condensed cash flow statement, and selected explanatory notes – and the interim Group management report of GF T Technologies Aktiengesellschaft, Stuttgart, for the period from 1 January to 30 June 2011, which are part of the half-yearly financial report pursuant to § 37w WpHG (Wertpapierhandelsgesetz: German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRSs applicable to the interim financial reporting as adopted by the EU and to the interim Group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent company's board of management. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim Group management report based on our review.

We conducted our review of the condensed consolidated interim financial statements and the interim Group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the "Institut der Wirtschaftsprüfer" (Institute of Public Auditors in Germany) (IDW). These standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU, the IFRSs as issued by the IASB applicable to the interim financial reporting and that the interim Group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU nor that the interim Group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.

Stuttgart, 10 August 2011

Warth & Klein Grant Thornton AG

Wirtschaftsprüfungsgesellschaft

Gernot Hämmerle Jürgen Scheftschik Auditor Auditor

Financial Calendar

Interim Report as of 30 September 2011 9 November 2011

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

ir@gft.com

This Interim Report as of 30 June 2011 is also available in German. The online versions of the German and English Interim Reports are available on www.gft.com/ir.

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© Coypright 2011: GFT Technologies AG, Stuttgart