GFT Technologies SE — Interim / Quarterly Report 2012

Aug 9, 2012

Half-Yearly financial report as of 30 JunE 2012 H1

Key figures according to IFRS

(not certified)

	Half-year
		01/01/– 30/06/2012	01/01/– 30/06/2011	Change
Income Statement
Revenue	€m	116.38	141.80	-17.9%
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	€m	4.43	5.76	-23.1%
Earnings before interest and taxes (EBIT)	€m	3.67	5.13	-28.5%
Earnings before taxes (EBT)	€m	3.78	5.52	-31.5%
Net income	€m	2.36	3.63	-35.0%
Balance sheet
Other non-current assets	€m	45.41	35.59	27.6%
Cash, cash equivalents and securities	€m	30.40	18.09	68.0%
Other current assets	€m	54.40	81.41	-33.2%
ASSETS	€m	130.21	135.09	-3.6%
Non-current liabilities	€m	6.84	2.28	200.0%
Current liabilities	€m	48.90	61.64	-20.7%
Shareholders´ equity	€m	74.47	71.17	4.6%
SHAREHOLDERS' EQUITY AND LIABILITIES	€m	130.21	135.09	-3.6%
Equity ratio	%	57%	53%	4 %-points
Cash flow
Cash flow from operating activities	€m	-5.32	-11.61	-54.2%
Cash flow from investing activities	€m	-0.80	-0.84	-4.8%
Cash flow from financing activities	€m	-3.48	-3.54	-1.7%
Employees
Number of permanent employees (as of 30 June)		1,371	1,317	4.1%
Share
Earnings per share	€	0.09	0.14	-35.0%

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

The GFT Group can look back on a solid performance and ended its first half-year 2012 with revenue growth in its core operating business. For the current financial year, the GFT Group expects stronger growth in the second half-year. The Executive Board has confirmed its annual forecast for revenue of €250 million and for pre-tax earnings of €12 million.

Contents

Consolidated Interim Management Report … 2 | Consolidated Interim Financial Statements … 16 Notes to the Interim Financial Statements … 23

Consolidated Interim Management Report

of GFT Technologies AG as of 30 June 2012 (not certified)

Business environment

Economic environment

Macroeconomic development

The Euro zone debt crisis continues to cast its shadow on the global economy. According to the International Monetary Fund (IMF), the global upturn – already no more than moderate – has grown even more feeble over the past three months. In their World Economic Outlook of July 2012, the economists downgraded their global growth forecast accordingly to 3.5%.

Certain factors may continue to exert a negative influence on the global economic situation. These include the growing political and economic uncertainty in Greece and the banking problems of Spain. To what extent the Euro zone partners are prepared to help the crisis-hit nations in future remains open, as does the question of whether suitable measures can be introduced to improve the situation. The budget debate in the USA also presents a danger for the global economy. The IMF hopes that an abrupt fiscal blockade can be avoided and a medium-term consolidation strategy drafted.

The IMF has confirmed its April forecast for the Euro zone. The experts continue to predict a mild recession of 0.3% in 2012. The economic prospects are particularly gloomy in crisis-hit countries, such as Greece, Italy, Spain and Portugal.

At the same time, however, the IMF has upgraded its outlook for Germany. For the current year, the economists expect growth of 1.0% – some 0.4 %-points more than forecast in April.

Sector development

Despite the European finance and banking crisis, the global market for Information and Communication Technology (ICT) continues to display stable growth. This was the conclusion of the »ICT Market Report 2012/13« published by the European Information Technology Observatory (EITO). It also stated that global ICT revenues were growing by 5.1%.

There are considerable differences in the sector's regional development, however. Whereas business is largely stagnant in Western Europe or even shrinking in certain areas, demand is booming in the emerging nations. The latter already account for 27% of total global demand for ICT products. Germany takes a special place within the European ICT sector: with growth of 1.6%, the German market provides a certain degree of stability.

There were positive figures published in June by the German Federal Association for Information Technology, Telecommunications and New Media (BITKOM). The number of people employed in the ICT sector, for example, grew by 18,000 last year and 54% of companies are looking to hire new staff in 2012. Unchanged from its spring forecast, the sector association still expects ICT revenues to reach €73.2 billion in the current year – an increase of 4.5% over the previous year.

BITKOM's business confidence index also indicates further stable growth in the second quarter of 2012: 69% of IT and telecommunication providers surveyed stated that they anticipated rising sales compared to the same period last year.

Course of business in the first six months

The GFT Group can look back on a solid performance in the first six months of 2012. Despite noticeable signs of ongoing caution in certain areas of the financial sector, GFT enjoyed revenue growth of 5% in its Services segment and the core business of its Resourcing segment. As expected, pre-tax operating profits (EBT) in these segments were down 11% year on year in the period under review. The reason was a fall in new orders in the second half of 2011, which in turn impacted earnings in the first half of 2012. Whereas the first half of 2011 was marked by healthy demand and the second half by budget cuts, new orders rose steadily in the first six months of 2012. These will lead to increased revenue and earnings in the remaining course of the year.

As a result of the planned withdrawal from the lower-margin Third Party Management business of the Resourcing segment in late 2011, total revenue in the period under review displays a year-on-year decline of 18%. A total of €116.38 million was generated (prev. year: €141.80 million). Of this amount, the first quarter of 2012 accounted for €57.65 million and the second quarter for €58.73 million. Pre-tax earnings (EBT) for the first six months of the year totalled €3.78 million (prev. year: €5.52 million). This decline of 32% in direct comparison with the previous year is mainly due to non-recurring expenses of €1.32 million for the international innovation initiative »CODE_n12«. This burden was borne by the first quarter in which EBT amounted to €1.27 million. In the second quarter, the GFT Group posted an EBT result of €2.51 million.

In the first six months, the Services division contributed €60.85 million to total revenue (prev. year: €58.26 million). As a consequence, segment revenue grew by 4% year on year. In addition to acquisitions in Switzerland and the USA made in 2011 and included for the first time in the first half-year, the main contributing factors were stable sales of outsourcing services and a slight increase in demand from customers in the UK and US corporate and investment banking sectors.

The Resourcing division benefited from strong demand for freelance IT specialists in the industrial sector and generated segment revenue of €55.53 million. This represented a 34% fall on the prior-year figure of €83.54 million due to the loss of revenue from Third Party Management activities. Despite the positive development of the Resource Management business, which displayed strong growth especially in France, this decline in revenue could not be offset. A year-on-year comparison of revenue without Third Party Management reveals growth in segment revenue of 5%.

At €1.15 million (prev. year: €1.65 million), segment earnings in the Resourcing division fell short of expectations. The segment result in the Services division amounted to €4.25 million in the period under review and was thus slightly down on the prior-year figure of €4.56 million. Despite slightly better utilisation of capacities compared

to the first quarter of 2012 and ongoing efforts to raise efficiency, a lower utilisation of capacities in comparison to the same period last year had a dampening effect on segment earnings. In the period under review, the total EBT result of the GFT Group was also burdened by scheduled expenditure for the innovation initiative »CODE_n12«; costs for this drive were mostly expensed in the first quarter.

In its current financial year, the GFT Group expects to achieve stronger growth in the second half of the year. This is due to stronger capital spending in the finance sector, which already led to more orders in the first half of the current fiscal year. Growing demand from customers in corporate and investment banking and the rising need for IT solutions to comply with regulatory requirements will have a particularly positive impact on revenue in the Services segment. In the Resourcing division, it is expected that the strong demand for IT specialists across all sectors will continue to generate above-average growth in Resource Management. Against this backdrop, the Executive Board of GFT can confirm the forecast it made in the Consolidated Financial Statements 2011: it continues to expect total revenue of €250 million and earnings before taxes of €12 million for the year as a whole.

GFT share

Following a strong start to the year and an upward trend in the first quarter of 2012, the global stock markets began a phase of consolidation towards the end of March. Negative reports, especially in connection with the debt problems of South European countries, caused stock prices to tumble in April. In the course of May and June, the negative signals began to intensify and market sentiment deteriorated further. The main reasons were the unsettled question of a possible Greek exit from the Euro zone, fears about the Spanish banking sector, weaker growth in the USA and China, as well as disappointing economic data in the Euro zone. On the other hand, there were encourag-

ing reports from German companies, whose figures for the first quarter were generally positive. The prevailing mood on the stock markets was dominated by the tension between these positive company reports and a tense economic environment; trading was nervous and cautious, while many investors focused on risk avoidance.

After growing by 14% in the first quarter, the blue-chip DAX index lost much of the ground it had gained since the beginning of the year during the second quarter. After suffering a slide in share prices over several weeks, the index moved sideways towards the end of the first half of 2012 while remaining above the 6,000-point mark. The DAX closed at 6,416 points on 30 June 2012 and was thus up 9% on its year-opening value of 5,898 points.

The tech-stock index TecDAX, which grew by 15% in the first quarter, suffered losses in the second quarter which cancelled out many of the gains made in the first three months. In the second quarter, the index lost almost 6 %-points and closed at 744 points on 30 June 2012 – an increase of 9%.

The performance of the GFT share in the first half of 2012 was affected by the general volatility of the market. Following a strong start to the year, the share made encouraging progress in the first quarter, finishing 13% up on the beginning of the year. Performance in the second quarter was much more uneven with lower trading volumes. After closing at €3.12 in April, the share remained susceptible to fluctuation throughout May and closed the month at €3.01. On publication of figures for the first quarter of 2012 on 10 May, the share price rose to €3.10. In June, the GFT share was once again confronted by growing volatility and pressure to sell. It ended the first half-year at €2.90, representing growth of 5% over its year-opening price of €2.75.

Following the publication of the interim report as of 31 March 2012, the analysts of equinet Bank AG and LBBW upheld their »buy« recommendation for the GFT share with an upside target of €4.40 and €4.00, respectively. The analysts of Hauck & Aufhäuser and Warburg Research also maintained their »buy« recommendation with an unchanged upside target €4.70 and €5.00, respectively. Following the publication of interim figures for financial year 2011 on 1 March 2012, Hauck & Aufhäuser had raised their upside target from €4.20 to €4.70.

The Annual General Meeting of GFT Technologies AG was held on 22 May 2012 at the company's headquarters in Stuttgart. Attended by 59.89% of voting capital, all items on the agenda were adopted with large majorities. The dividend of €0.15 per share proposed by the Executive Board and Supervisory Board was distributed in accordance with the resolution adopted by the Annual General Meeting of 22 May 2012.

Shareholder structure

There were no significant changes in the shareholder structure in the first six months of 2012. Company founder Ulrich Dietz continues to hold 28.08% of shares. Maria Dietz owns 9.68% of shares. Dr Markus Kerber, a former member of GFT's Supervisory Board, holds 5.00% of shares. The free float portion amounts to 57.24%.

Shareholder structure

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28.08%
9.68%
5.00%
57.24%

Share performance in the first six months of 2012 indexed

Information on the GFT share

	Q1–Q2 2012	Q1–Q2 2011
Year-opening quotation (XETRA)*	€2.75	€4.33
Closing quotation on 30 June (XETRA)*	€2.90	€3.96
Percentage change since year-opening	+5%	-9%
Highest price (XETRA)*	€3.20 (02/03/2012, 13/03/2012, 14/03/2012, 15/03/2012, 16/03/2012, 20/03/2012, 21/03/2012)	€4.86 (18/01/2011)
Lowest price (XETRA)*	€2.75 (02.01.2012)	€3.59 (13.06.2011)
Market capitalisation as of 30 June	€76.35 million	€104.25 million
Earnings per share	€0.09	€0.14
Average daily trading volume in shares (XETRA and Frankfurt)*	12,954	38,516

*daily closing prices

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

Development of revenue

In the first half of 2012, the GFT Group generated revenue of €116.38 million and thus 18% less than in the same period last year (€141.80 million). This decline in revenue resulted from the complete reduction in business with a major Resourcing client from the finance sector at year-end 2011. At €55.53 million, there was a corresponding yearon-year fall in total revenue of the Resourcing segment in the first half-year (prev. year: €83.54 million). The Services division achieved revenue growth of 4% to €60.85 million (prev. year: €58.26 million).

Revenue by segment

The decline in revenue of the Resourcing division led to a shift in the breakdown of revenue by segment in favour of the Services division. The latter accounted for 52% of total revenue in the first half of 2012, compared to just 41% in the same period last year. In the first six months of 2012, the Resourcing segment therefore generated 48% of total Group revenue (prev. year: 59%). Of this total, the reduced Third Party Management business accounted for 9% (prev. year: 29%) and the Resource Management business for 38% (prev. year: 30%).

All in all, the Resourcing division succeeded in continuing its positive development of 2011. However, the planned decline in revenue due to the termination of cooperation with a major client could not be fully offset. As a consequence, segment revenue in the period under review fell by 34% to €55.53 million (prev. year: €83.54 million). This decline only affected the low-margin Third Party Management business, which generated revenue of €10.94 million (prev. year: €41.14 million). Revenue of the higher-margin Resource Management business, however, grew by 5%. The scheduled increase to €44.60 million (prev. year: €42.40 million) resulted from growing business with customers in the telecommunications sector, as well as strong demand across all sectors for freelance IT and engineering specialists.

In the first two quarters of 2012, the Services division achieved year-on-year revenue growth of 4% to €60.85 million (prev. year: €58.26 million). This growth was mainly due to acquisitions in Switzerland and the USA made in the previous year which had a noticeable impact on revenue in 2012. The Services segment also benefited from stable demand in the finance sector for core banking solutions, outsourcing services and IT solutions to implement regulatory requirements.

Revenue by segment

Resourcing	Q1–2 2012 48%	€ million 55.53

Revenue by country

	Q1–2 2012	€ million
Germany	38%	44.72
France	17%	19.92
UK	16%	18.11
Spain	12%	13.95
Switzerland	5%	6.19
USA	5%	5.96
Other countries	7%	7.53

Revenue by country

Within the GFT Group, Germany remains the largest sales market. In the first half of 2012, revenue in this country amounted to €44.72 million (prev. year: €79.50 million). As revenue in other countries continued to grow, Germany's share of total Group revenue fell to 38% (prev. year: 56%). The fall in revenue of 44% compared to the same period of 2011 was due to declining Third Party Management revenue. Consistently high demand for freelance IT and engineering experts had a positive impact on the Resource Management business, while long-term projects with customers in the finance sector helped boost revenue in the Services segment.

In the first half of 2012, France established itself for the first time as the GFT Group's second largest sales market. Revenue grew by 29% to €19.92 million (prev. year: €15.49 million). This increase in revenue was achieved in the Resourcing segment and above all with clients in industrial sectors. Existing projects were expanded and new clients added. Compared to the previous year, there was a growing shift in revenue towards the higher-margin Resource Management business.

Business in the UK developed more positively than originally assumed at the beginning of the year. Despite a volatile market environment in the finance sector, the high revenue level of the previous year (€19.23 million) was almost maintained. In the first six months of 2012, revenue reached €18.11 million. As a result, the UK accounted for 16% of the GFT Group's total revenue in the period under review (prev. year: 14%).

Spain also raised its share of total revenue in the first six months – despite the ongoing difficulties of the banking sector targeted in particular by GFT. In the period under review, revenue of €13.95 million (prev. year: €13.16 million) was generated with clients in Spain, accounting for 12% of total revenue (prev. year: 9%). Stable long-term projects and consistently strong demand from financial institutes for outsourcing services played a major role in this development.

In the first half of 2012, Switzerland contributed revenue of €6.19 million. It thus exceeded the prior-year figure (€4.85 million) by 28%. This development was largely due to the acquisition of Asymo AG. Moreover, the Services division in particular proved stable in Switzerland. The country's share of total revenue increased by 2 %-points to 5%.

The significant increase in revenue of 72% in the USA was mainly due to the initial inclusion of the acquired consultancy division of G2 Systems. Organic growth in corporate and investment banking also had a positive impact. In total, revenue amounted to €5.96 million in the period under review (prev. year: €3.46 million). As a result, the USA increased its share of total revenue to 5% (prev. year: 2%).

»Other countries«, which include Brazil, Italy and the Benelux states, contributed revenue of €7.53 million in the first half of 2012. This is 23% more than in the same period of 2011 (€6.11 million). As a result, 7% of total revenue was generated by other countries, in which mainly project business in the Services segment was expanded.

Revenue by industry

The financial services industry remains the GFT Group's most important sector. Although its share of total revenue was slightly down in the first half of 2012 at 61% (prev. year: 67%), this decline is due to the planned withdrawal from low-margin Third Party Management business with a major client. In the first six months of 2012, the GFT Group generated revenue of €70.96 million (prev. year: €94.80 million) with projects for banks and insurance companies.

The GFT Group's revenue from customers in the postal and logistics industry fell by 54% to €4.60 million in the first half of 2012 (prev. year: €10.09 million). This sector accounted for 4% of total revenue (prev. year: 7%).

The remaining 35% of total revenue (prev. year: 26%) was generated with clients in the »Others« category. In the first two quarters of the year, the GFT Group received revenue of €40.82 million in this field (prev. year: €36.91 million). In the telecommunications and industrial sectors, GFT benefited from consistently strong demand for freelance IT experts and engineers.

Earnings position

At €3.78 million, earnings before taxes (EBT) of the GFT Group in the first six months of 2012 fell short of the prioryear figure of €5.52 million. The operating margin before taxes fell by 0.6 %-points, from 3.9% last year to 3.3% in the period under review. All in all, EBT in the first half of 2012 was above expectations as costs included expenses of €1.32 million for the »CODE_n12« project and CeBIT fair presence.

An assessment of the two operating divisions reveals that both segments fell short of their prior-year results. The Resourcing segment in particular posted earnings well below the previous year's result.

In the period under review, earnings before interest and taxes (EBIT) amounted to €3.67 million and were thus €1.46 million down on the previous year (€5.13 million). As a consequence, earnings before interest, taxes and depreciation/amortisation (EBITDA) on property, plant and equipment and intangible assets were also down on the previous year at €4.43 million (prev. year: €5.76 million).

Net income of the GFT Group for the first six months amounted to €2.36 million. Earnings after taxes were thus down by €1.27 million (prev. year: €3.63 million). The calculated tax ratio rose from 34% in the previous year to 38%.

Earnings per share fell by €0.05 in the period under review to €0.09 per share (prev. year: €0.14 per share). These figures are based on an average of 26,325,946 outstanding shares.

Revenue by industry

	Q1–2 2012	€ million
Financial service providers	61%	70.96
Post/logistics	4%	4.60
Others	35%	40.82

Earnings position by segment

Earnings position by segment

In the first half of 2012, the Services segment contributed €4.25 million to earnings (prev. year: €4.56 million), representing a year-on-year decline of 7%; its operating margin fell by 0.8 %-points to 7.0%. The segment result amounted to €2.44 million in the second quarter of 2012 (prev. year: €3.12 million). The reason for this decline is the ongoing volatile market environment and reduced utilisation of staff in this segment compared to the previous year.

Earnings in the Resourcing segment amounted to €1.15 million as of 30 June 2012 and were thus down on the previous year (€1.65 million) as a result of the current adverse market conditions. The stable development of the German and French markets was offset by much weaker results in the UK and Switzerland. The operating margin improved by 0.1 %-points to 2.1% (prev. year: 2.0%).

Despite a significant reduction in revenue of €30.20 million, earnings from Third Party Management activities were only slightly down on the previous year. Third Party Management accounted for €0.04 million of earnings (prev. year: €0.22 million). In the Resource Management business, earnings fell as a result of lower margins to €1.11 million (prev. year: €1.43 million).

The »Others« category comprises balance sheet effects, as well as non-allocated costs of the holding company and consolidation amounts which cannot be directly charged to either of the two aforementioned divisions. Due in particular to non-recurring expenses in connection with the »CODE_n12« project and CeBIT fair presence, pre-tax earnings were well below the prior-year figure at €-1.62 million (prev. year: €-0.69 million).

Earnings position by income and expense items

As of 30 June 2012, other operating income amounted to €1.46 million and was thus only slightly above the prioryear figure (€1.38 million). The increase in other operating income was mainly due to other income of €0.87 million. The remaining changes resulted from the write-up of short-term securities, currency gains and benefits in kind.

As of 30 June 2012, the cost of materials – mainly comprising the purchase of external manpower – amounted to €54.99 million and was thus well below the prior-year figure of €84.48 million. This decline resulted from a significant reduction in Third Party Management revenue and the respective purchase of external manpower. As a proportion of revenue, the cost of materials consequently fell by 13 %-points year on year to 47% (prev. year: 60%).

Personnel expenses rose by €4.46 million to €46.42 million (prev. year: €41.96 million). This 11% increase in personnel expenses was mainly due to the rise in headcount following acquisitions and salary increases granted in 2012. As a proportion of revenue, personnel expenses were up strongly by around 10 %-points to 40% (prev. year: 30%) due to the increased revenue share of the Services segment of 52% in the first half of 2012 (prev. year: 41%).

Depreciation of intangible and tangible assets amounted to €0.76 million as of 30 June 2012 and was thus €0.13 million above the prior-year figure (€0.63 million). However, this had only a minor impact on ordinary operating profits.

Other operating expenses increased to €12.00 million in the first six months of the financial year, corresponding to a year-on-year increase of 10% (prev. year: €10.87 million). The cost increases were mainly attributable to higher operating, administrative and selling expenses, which rose by €1.43 million to €11.36 million in 2012 (prev. year: €9.93 million) due to increased business activities and costs attributable to the »CODE_n12« project. This item also includes other expenses which are not out-of-period, other taxes and exchange rate losses.

As of 30 June 2012, income taxes amounted to €1.42 million and were thus €0.47 million below the prior-year figure (€1.89 million). The calculated tax ratio increased to 38% in the period under review (prev. year: 34%).

Financial position

As of the end of the first half-year, cash, cash equivalents and securities amounted to €30.40 million and were therefore €9.28 million below the corresponding figure at the end of 2011 (€39.68 million). The decline was mainly due to a fall in liquid funds, particularly as a result of the usual increase in working capital during the year by €9.49 million to €22.98 million.

Compared to the year-end figure (€50.96 million), trade receivables rose only slightly by €0.72 million to €51.68 million. As of 30 June 2012, trade payables amounted to just €19.15 million and were thus well below the corresponding figure on 31 December 2011 (€28.63 million). This reduction resulted mainly from the significant decrease in Third Party Management revenue and the related purchase of external staff.

Compared to the same period last year, cash flows from operating activities improved considerably and amounted to €-5.32 million as of 30 June 2012 (prev. year: €-11.61 million). This is mainly due to improved claims management and the payment of arrears by a major client in the second quarter of 2012.

At €-0.80 million, cash flows from investing activities were virtually unchanged from the previous year (€-0.84 million); compared to last year, there was a slight increase in capital expenditure, including IT procurements.

As of 30 June 2012, cash flows from financing activities amounted to €-3.48 million and were therefore almost unchanged from the previous year (€-3.54 million). The main items were the dividend payment to shareholders of €-3.95 million and the use of short-term credit lines by a foreign subsidiary.

Asset position

As of 30 June 2012, the balance sheet total of the GFT Group was down €8.07 million at €130.21 million. At the end of the financial year 2011, the total was €138.28 million.

On the asset side there was a significant change in current assets and in particular the items cash and cash equivalents, and to a lesser extent trade receivables. Non-current assets, however, were largely unchanged. Compared to 31 December 2011, they rose by €0.07 million to €51.64 million, mainly as a result of an increase in deferred tax claims.

As of 30 June 2012, current assets were well below their year-end level (€86.71 million), falling to €78.57 million. Within this item, liquid funds decreased strongly by €9.49 million to €22.98 million, while trade receivables increased by €0.72 million to €51.68 million.

On the liabilities side the most notable changes were among the current liabilities; equity was slightly down on the year-end figure. As of 30 June 2012, equity amounted to €74.47 million and was thus €1.15 million below the corresponding figure on the balance sheet date of 31 December 2011. The equity ratio rose to 57%, compared to 55% on 31 December 2011.

In terms of debt, there was a significant decrease in non-current liabilities of €1.74 million due mainly to the reversal of other provisions of €1.41 million. As of the balance sheet date, non-current liabilities amounted to €6.84 million compared to €8.59 million at year-end 2011.

There was an even stronger decline in current liabilities during the period under review, which fell by €5.17 million from €54.07 million to €48.90 million. Within this item, there was a strong reduction in trade payables to €19.15 million compared with €28.63 million as of 31 December 2011. In contrast, other provisions rose to €19.37 million (31 December 2011: €17.07 million) and other liabilities slightly to €7.54 million (31 December 2011: €6.45 million).

Group balance sheet structure

ASSETS € million	31/12/2011	30/06/2012
Cash, cash equivalents and securities	39.68	30.40
Other current assets	53.25	54.40
Other non-current assets	45.35	45.41
	138.28	130.21

30/06/2012	31/12/2011	LIABILITIES € million
48.90	54.07	Current liabilities
6.84	8.59	Non-current liabilities
74.47	75.62	Equity capital
130.21	138.28

Although the equity/non-current assets ratio – the yardstick for solid balance sheet structures – fell slightly to 144% as of 30 June 2012 (31 December 2011: 147%), it is still at a very healthy level. This ratio expresses the relationship between the balance sheet items »equity« and »non-current assets« and thus provides information about the company's financial stability.

Employees

The GFT Group employed a total of 1,371 people at the end of the first half of 2012. Compared to the same date last year, this represents an increase of 54 persons or 4%. The number of employees is calculated on the basis of fulltime staff, whereby part-time staff are included on a pro rata basis. There was also an increase in headcount in comparison to the two preceding quarters: on 31 December 2011, GFT had 1,337 employees and on 31 March 2012 1,346.

At the end of the reporting period, a total of 1,220 people were employed in the Services division, corresponding to year-on-year growth of 4% or 42 persons. This increase in headcount was due to the acquisition of the consulting division of G2 Systems in the USA and the expansion of activities in Spain.

There was also a rise in headcount in the Resourcing division. At the end of the first six months, a total of 105 persons worked in this segment (prev. year: 99).

In the »Others« category, there was an increase of six employees. The holding company thus employed 46 people on the reporting date.

Employees by division as of 30 June

	2012	2011
Services	1,220	1,178
Resourcing	105	99
Others	46	40
Total	1,371	1,317

The number of people employed in Germany as of 30 June 2012 amounted to 271. This was 3% or 9 persons below the prior-year figure. Staff employed outside Germany rose by 63 to a total of 1,100 employees (prev. year: 1,037). As a result, the proportion of total GFT staff employed outside Germany now amounts to 80% (prev. year: 79%).

There was a strong decrease in the average number of freelancers employed. Compared to 1,383 persons on 30 June 2011, the number fell to 1,022 one year later. This was due to the planned reduction in activities for a major client in the field of Third Party Management.

Employees by country as of 30 June

	2012	2011
Germany	271	280
Brazil	150	157
France	16	18
UK	34	30
Switzerland	49	51
Spain	829	778
USA	22	3
Total	1,371	1,317
Foreign share in %	80	79

Research and development Subsequent events

In the first half of 2012, the GFT Group spent €1.01 million on research and development activities. This represents an increase of 3% over the same period last year (€0.98 million).

These expenses resulted mainly from R&D activities in connection with the following initiatives:

GFT mobile sales & advisory (formerly a-touch) refers to the IT-aided solution for advisors in the field of private banking and wealth management, which GFT continued to develop in the first six months of 2012. Thanks to its special security components, it is suitable for use on mobile devices and provides system-supported implementation of all compliance requirements.

At its SAP Competence Centre, GFT develops suitable application possibilities to help banks migrate their IT systems to SAP software.

Under the title Mobile Finance, GFT pools its development activities in the field of platform-independent mobile applications for financial service providers. These activities were intensified in the period under review, for example with the expansion of the Mobile Finance Competence Centre.

As of May 2011, GFT has pooled all R&D activities in the field of applied innovation management in its internal »Applied Technologies Group«.

GFT continued to optimise its software development processes in accordance with the international CMMI© (Capability Maturity Model Integration) standard in order to ensure consistently high quality in its global development efforts.

No events occurred after the balance sheet date as at 30 June 2012 that are of major significance to GFT.

Opportunity and risk report

In the first six months of 2012, there were no material changes with regard to the comprehensive discussion of opportunities and risks provided in the Management Report accompanying the Consolidated Financial Statements for 2011. The risk position of the GFT Group is thus unchanged.

Forecast report

Macroeconomic development

The global economic prospects remain modest. The International Monetary Fund (IMF) has downgraded its April growth forecast for 2013 from 4.1% to 3.9%. The figures published in July 2012 already assume that measures taken by Europe's politicians to alleviate the crisis will gradually produce positive effects.

A further assumption used by the IMF in its World Economic Outlook concerns the emerging economies, such as Brazil, China and India. The economists already expect that more relaxed fiscal policies in these countries will begin to take effect. Nevertheless, the IMF has downgraded its forecast slightly for the main emerging economies. The same applies to the USA.

The IMF has also lowered its outlook for the Euro zone by 0.2 %-points. The experts now forecast economic growth of 0.7% for 2013. The outlook for Spain is especially pessimistic. Whereas the economists were still forecasting minimal growth of 0.1% in April, their outlook of July 2012 now predicts a decline in Spain's gross domestic product of 0.6%.

The forecasts for Germany continue to lie above the Euro zone average. The IMF has forecast growth of 1.4% for 2013, representing a slight downgrade compared to its 1.5% forecast in April.

Sector development

According to the European Information Technology Observatory (EITO), growth in the global ICT sector is expected to be strongest in the emerging nations. Their share of total global demand is estimated to reach almost 50% by 2020. Mobile phones, laptops and tablets will increasingly become the main hubs for accessing information technology. Investments in ICT infrastructure and the expansion of capacities will be particularly high in these countries.

In Western Europe, revenue is expected to grow by 1.2% to €617 billion in 2012 – provided that there is no deterioration of the Euro crisis. The EITO forecast sees growth of 1.4% in 2013.

The German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) published figures in June 2012 which indicate that 73% of Germany's ICT companies expect increasing revenues in 2012. At the same time, the high-tech association confirmed the forecast it published in March: it expects sales of products and services in the field of information technology, telecommunication and consumer electronics to rise by 1.6% to €151 billion in 2012. The forecasts made in spring continue to apply for the ICT sector: the association expects revenue to grow by 4.5% to €73.2 billion in the current year.

The shortage of skilled labour continues to hamper growth in the German ICT market. Although a further 10,000 jobs are forecast for the sector in 2012, some 63% of companies claim that they cannot find suitable staff to fill their vacancies. According to BITKOM, political efforts to encourage highly skilled foreign workers to emigrate to Germany might provide short-term relief.

Revenue and earnings forecast

For the second half of 2012, the GFT Group expects that the differing growth rates of its various client sectors will begin to converge. After the industrial sector and telecommunications industry, demand is now expected to improve throughout the finance sector. In view of the general conditions for the economy as a whole and for the IT sector, this will have a positive impact on the Group's development. In the second half of the year, the Group expects a consistently positive development in the Resourcing segment and increased growth in the Services segment.

In the Services segment, growth is expected to be driven by the field of corporate and investment banking. Together with consistently high demand for outsourcing services and modern core banking and customer management systems, this will have a positive impact on revenue and earnings. There will also be an increasing need among financial institutes for IT solutions to meet rising compliance requirements. These clients are also expected to invest in future-oriented services again, such as mobile banking. With its wide range of products and services, GFT already occupies these topics and can swiftly and efficiently meet any rise in demand.

In the second half of the year, the Resourcing division is expected to benefit further from the strong demand for freelance IT specialists. With its international network of specialists, this segment is well placed to serve the growing global need for skilled personnel. It is assumed that the industrial sector will maintain its current high level of capital spending throughout the year. The strong demand for highly skilled engineers used in international projects offers particularly attractive growth potential. In the course of 2012, the Group's higher-margin Resource Management business in particular is expected to achieve further growth across all sectors and countries. By focusing on this business and strictly pursuing ongoing measures to enhance efficiency, GFT expects positive effects for segment earnings. In the remaining months of the current financial year, efforts to improve operations at our units in the UK and Switzerland will be intensified.

Based on the statements made above, the Executive Board of GFT is optimistic that it can close financial year 2012 in line with planning. To this end, we intend to utilise the specific opportunities presented to our two business divisions as efficiently as possible. In view of the ongoing uncertainty of the financial markets, we are also keeping a close eye on the ensuing risks and challenges and will continue to pursue our responsible business strategy. For 2012 as a whole, we can confirm the forecast we made in the Consolidated Financial Statements 2011 and expect revenue of €250 million and pre-tax earnings of €12 million.

Stuttgart, 6 August 2012

GFT Technologies Aktiengesellschaft

The Executive Board

Ulrich Dietz Jean-François Bodin Marika Lulay Dr Jochen Ruetz Executive Board (Chairman) Executive Board Executive Board Executive Board

Consolidated Statement of comprehensive Income

for the period from 1 January to 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

Partial Statement Affecting Net Income: Consolidated Income Statement

	Half-year		Second quarter
€	01/01/– 30/06/2012	01/01/– 30/06/2011	01/04/– 30/06/2012	01/04/– 30/06/2011
Revenue	116,382,223.48	141,803,332.84	58,732,695.09	74,500,653.63
Other operating income	1,459,466.23	1,384,702.41	475,306.04	1,037,722.18
	117,841,689.71	143,188,035.25	59,208,001.13	75,538,375.81
Cost of materials:
a) expenses for raw materials and supplies and for purchased goods	2,529.05	4,855.15	2,454.80	254.41
b) Costs of purchased services	54,987,617.49	84,480,133.99	27,518,098.88	45,232,000.17
	54,990,146.54	84,484,989.14	27,520,553.68	45,232,254.58
Personnel expenses:
a) Salaries and wages	39,095,860.22	34,771,316.28	19,491,095.98	17,307,721.99
b) Social security and expenditures for retirement pensions	7,321,879.99	7,184,298.86	3,697,032.99	3,594,228.16
	46,417,740.21	41,955,615.14	23,188,128.97	20,901,950.15
Depreciation on non-current intangible assets and of tangible assets	763,090.09	633,522.30	392,554.19	320,099.80
Other operating expenses	11,999,147.35	10,865,192.17	5,573,747.07	5,765,098.24
Result from operating activities	3,671,565.52	5,248,716.50	2,533,017.22	3,318,973.04
Other interest and similar income	238,602.13	405,279.98	107,485.56	246,073.28
Profit share from associates	-12,310.54	1,546.34	-15,260.48	4,363.36
Depreciation on securities	0.00	121,523.93	0.00	57,649.88
Interest and similar expenses	115,246.54	12,447.47	112,161.55	10,417.07
Financial result	111,045.05	272,854.92	-19,936.47	182,369.69
Earnings before taxes	3,782,610.57	5,521,571.42	2,513,080.75	3,501,342.73
Taxes on income and earnings	1,422,341.54	1,889,206.56	778,700.58	1,221,983.34
Net income	2,360,269.03	3,632,364.86	1,734,380.17	2,279,359.39
– attributable to non-controlling equity holders	0.00	0.00	0.00	0.00
– attributable to equity holders of the parent	2,360,269.03	3,632,364.86	1,734,380.17	2,279,359.39
Net earnings per share – undiluted	0.09	0.14	0.07	0.09
Net earnings per share – diluted	0.09	0.14	0.07	0.09

Partial Statement Not Affecting Net Income: Consolidated Income Statement

	Half-year		Second quarter
€	01/01/– 30/06/2012	01/01/– 30/06/2011	01/04/– 30/06/2012	01/04/– 30/06/2011
Net income	2,360,269.03	3,632,364.86	1,734,380.17	2,279,359.39
Financial assets available for sale (securities):
– Change of fair value recognised in equity during the financial year	72,770.75	65,960.51	-186,957.03	-87,839.49
	72,770.75	65,960.51	-186,957.03	-87,839.49
Exchange differences on translating foreign operations:
– Profits/losses during the financial year	366,860.49	137,922.19	324,286.22	269,397.20
	366,860.49	137,922.19	324,286.22	269,397.20
Income taxes on components of other result	0.00	16,559.06	0.00	16,559.06
Other result	439,631.24	220,441.76	137,329.19	198,116.77
Total result	2,799,900.27	3,852,806.62	1,871,709.36	2,477,476.16
– thereof attributable to non-controlling shareholders	0.00	0.00	0.00	0.00
– thereof attributable to shareholders of parent company	2,799,900.27	3,852,806.62	1,871,709.36	2,477,476.16

Consolidated Balance Sheet

as at 30 June 2012

GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

Assets

€	30/06/2012	31/12/2011
Non-current assets
Intangible assets
Licences, industrial property rights and similar rights	909,436.99	945,085.00
Goodwill	36,278,880.98	36,399,830.18
	37,188,317.97	37,344,915.18
Tangible assets
Other equipment, office and factory equipment	2,812,587.60	2,752,150.63
Construction on foreign property	44,464.16	54,780.08
	2,857,051.76	2,806,930.71
Financial assets
Securities	6,237,769.07	6,225,839.07
Financial assets, accounted for using the equity method	34,145.56	47,356.10
	6,271,914.63	6,273,195.17
Other financial assets	411,974.62	433,155.26
Current tax assets	513,626.04	514,567.53
Deferred tax assets	4,397,632.42	4,201,543.60
	51,640,517.44	51,574,307.45
Current assets
Trade receivables	51,682,490.10	50,962,108.83
Securities	1,188,300.00	982,520.00
Current tax assets	514,996.21	582,758.96
Cash and cash equivalents	22,978,422.61	32,472,593.37
Other financial assets	278,431.27	402,304.83
Other assets	1,929,298.99	1,305,256.69
	78,571,939.18	86,707,542.68
	130,212,456.62	138,281,850.13

Shareholders' Equity and Liabilities

€	30/06/2012	31/12/2011
Shareholders' equity
Equity attributable to equity holders of the parent
Share capital	26,325,946.00	26,325,946.00
– Conditional Capital €10,000,000.00 (previous year: €7,500,000.00 )
Capital reserve	42,147,782.15	42,147,782.15
Retained earnings
Other retained earnings	12,743,349.97	12,743,349.97
Changes in equity not affecting net income
Foreign currency translations	1,095,155.01	728,294.52
Reserve of market assessment for securities	-543,114.49	-615,885.24
Consolidated balance sheet loss	-7,302,325.79	-5,713,702.92
	74,466,792.85	75,615,784.48
Liabilities
Non-current liabilities
Provisions for pensions	793,718.38	769,718.38
Other provisions	5,822,631.12	7,235,803.15
Deferred tax liabilities	230,524.27	585,985.06
	6,846,873.77	8,591,506.59
Current liabilities
Other provisions	19,374,456.73	17,067,647.30
Current income tax liabilities	1,883,476.77	1,333,795.95
Financial liabilities	464,399.51	0.00
Trade payables	19,146,074.78	28,632,433.78
Other financial liabilities	491,225.12	588,991.71
Other liabilities	7,539,157.09	6,451,690.32
	48,898,790.00	54,074,559.06
	130,212,456.62	138,281,850.13

Consolidated Statement of Changes in Equity

as at 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

€	Subscribed	Capital	Retained
	capital	reserve	earnings
			Other
			retained
			earnings
As at 01.01.2011	26,325,946.00	42,147,782.15	10,243,349.97
Total income and expenses for the period 01/01/–30/06/2011
Dividend payment June 2011
As at 30/06/2011	26,325,946.00	42,147,782.15	10,243,349.97
As at 01/01/2011	26,325,946.00	42,147,782.15	10,243,349.97
Dividend payment June 2011
Total income and expenses for the financial year 01/01/–31/12/2011
Allocations to retained earnings 2011
– to other retained earnings			2,500,000.00
As at 31/12/2011	26,325,946.00	42,147,782.15	12,743,349.97
Dividend payment May 2012
Total income and expenses for the period 01/01/–30/06/2012
As at 30/06/2012	26,325,946.00	42,147,782.15	12,743,349.97

Total	Non-controlling	Equity	Consolidated		Changes in equity not affecting
share capital	equity holders	attributable to	balance sheet	results
		equity holders	loss
		of the parent		Market	Foreign
				assessment	currency
				for securities	translations
71,270,177.00	0.00	71,270,177.00	-7,554,412.13	-427,800.00	535,311.01
3,852,806.62	0.00	3,852,806.62	3,632,364.86	82,519.57	137,922.19
-3,948,891.90	0.00	-3,948,891.90	-3,948,891.90
71,174,091.72	0.00	71,174,091.72	-7,870,939.17	-345,280.43	673,233.20
71,270,177.00	0.00	71,270,177.00	-7,554,412.13	-427,800.00	535,311.01
-3,948,891.90	0.00	-3,948,891.90	-3,948,891.90
8,294,499.38	0.00	8,294,499.38	8,289,601.11	-188,085.24	192,983.51
0.00	0.00	0.00	-2,500,000.00
75,615,784.48	0.00	75,615,784.48	-5,713,702.92	-615,885.24	728,294.52
-3,948,891.90	0.00	-3,948,891.90	-3,948,891.90
2,799,900.27	0.00	2,799,900.27	2,360,269.03	72,770.75	366,860.49

As at 30/06/2012 26,325,946.00 42,147,782.15 12,743,349.97 1,095,155.01 -543,114.49 -7,302,325.79 74,466,792.85 0.00 74,466,792.85

Consolidated Cash Flow Statement

for the period from 1 January to 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

	Half-year
€	01/01/– 30/06/2012	01/01/– 30/06/2011
Net income	2,360,269.03	3,632,364.86
Depreciation on non-current intangible and tangible assets	763,090.09	633,522.30
Changes in provisions	917,637.40	2,527,292.96
Other non-cash expenses/income	27,673.34	69,610.69
Profit from the disposal of long-term tangible and intangible assets as well as financial assets	4,551.00	19,986.31
Changes in trade receivables	-720,381.27	-20,197,806.95
Changes in other assets	-606,372.68	-680,670.01
Changes in trade liabilities and other liabilities	-8,322,578.04	2,374,753.84
Other changes in equity	251,367.42	15,613.53
Cash flow from operating activities1	-5,324,743.71	-11,605,332.47
Cash receipts from sales of tangible assets	0.00	450.00
Cash payments to acquire tangible assets	-638,241.00	-497,679.97
Cash payments to acquire non-current
intangible assets	-162,186.73	-238,531.11
Cash receipts from sales of financial assets	0.00	6,226,500.00
Cash receipts from sale of consolidated companies
net of cash and cash equivalents disposed of	0.00	-6,329,816.98
Cash flow from investing activities	-800,427.73	-839,078.06
Cash receipts from taking out short-term or long-term loans	464,399.51	271,697.47
Payments to shareholders	-3,948,891.90	-3,948,891.90
Other changes in equity and minority interest	0.00	137,922.19
Cash flow from financing activities	-3,484,492.39	-3,539,272.24
Effect of exchange rate changes on
cash and cash equivalents	115,493.07	-15,613.53
Change in cash funds from cash-relevant transactions	-9,494,170.76	-15,999,296.30
Cash funds at the beginning of the period	32,472,593.37	26,232,995.13
Cash funds at the end of the period	22,978,422.61	10,233,698.83

1 Cash flow from operating activities includes cash flow from income taxes of € -1,655 thousand (net payment; prev. year: € -1,012 thousand). Cash flow from operating activities includes cash flow from interest paid of € 4 thousand (prev. year: € 14 thousand) and cash flow from interest received of € 230 thousand (prev. year: € 517 thousand).

as at 30 June 2012 GFT Technologies Aktiengesellschaft, Stuttgart (unaudited)

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

These unaudited Interim Financial Statements of GFT Technologies Aktiengesellschaft (»GFT AG«) and its subsidiaries have been prepared in accordance with section 37w (3) of the German Securities Trading Act (WpHG) and International Accounting Standard (IAS) 34 – Interim Financial Reporting. Compared to the Annual Financial Statements as at 31 December 2011, the Interim Financial Statements include condensed reporting in the Notes to the Financial Statements and comply with the International Financial Reporting Standards (IFRS) as adopted by the European Union.

With the exception of changes to the Cash Flow Statement, the same accounting and valuation methods were used in these Interim Financial Statements as in the last Consolidated Financial Statements as at 31 December 2011. New or amended standards and interpretations to be applied as of the beginning of the financial year 2012 did not have any major effect on the Interim Financial Statements. The increasing importance of currency-related cash flows led us to list these separately in the Cash Flow Statement. The prior-year figures were adjusted accordingly.

In drawing up these Interim Financial Statements, the Executive Board made estimations concerning the application and interpretation of accounting regulations. Actual events may differ from these estimations. Future developments and results depend on a number of external factors involving risks and uncertainties, and are based on current assumptions which may prove inaccurate.

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 2011:

On 13 April 2012, GFT Technologies AG acquired Neckarsee 254.VV GmbH and changed its name to GFT Beteiligungs-GmbH on 18 June 2012. The company's offices are located in Filderhauptstrasse 142, 70599 Stuttgart, Germany. Since its foundation, GFT Beteiligungs-GmbH has not conducted any significant operating activities. As a consequence, its initial consolidation did not have any major effect on the Group's assets, financial and earnings position.

The following changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 30 June 2011:

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 company was included in the Consolidated Financial Statements for the first time on the date of acquisition, 9 June 2011. It was therefore included in the Income Statement and Cash Flow Statement for the first half-year 2012 for a period of six months, compared to just one month

in the first half-year 2011. Its contribution to revenue in the first halfyear 2012 amounted to €3.78 million (in the first half-year 2011 €0.58 for one month), with a contribution to net income of €0.93 million (in the first half-year 2011 €0.20 million for one month).

The comparability of the Income Statement and Cash Flow Statement for the first half-year 2012 and the first half-year 2011 is thus impaired.

In the first half-year 2012, the following adjustment was made with regard to the business combination with GFT Financial Solutions AG, Opfikon, Switzerland (formerly Asymo AG, Adliswil, Switzerland):

Compared to the parameters used in planning calculations, the expected value of the conditional consideration (not discounted) was reduced from CHF6.0 million to CHF5.5 million due to subsequent improved data.

Moreover, there were foreign exchange losses of €0.1 million with regard to the measurement of the conditional consideration.

As a result of the above mentioned effects, the carrying value of the conditional consideration was reduced in total by €0.4 million.

The resulting goodwill from the acquisition of Asymo AG developed as follows:

Goodwill Asymo AG as at 1 January 2012	€10.9 million
Foreign exchange adjustment	€0.3 million
Adjustment to the expected value of the conditional consideration	€-0.5 million
Goodwill Asymo AG as at 30 June 2012	€10.7 million

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

For the changes in equity capital between 1 January 2012 and 30 June 2012, we refer to the Consolidated Statement of Changes in Equity which is disclosed separately.

As of 30 June 2012, the Company's share capital of €26,325,946.00 consists of 26,325,946 non-par value individual share certificates (no change relative to 31 December 2011). These shares are bearer shares and all grant equal rights.

In May 2012, 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 (the prior-year dividend in June 2011 of €0.15 per share also totalled €3,949 thousand)

As of 30 June 20112, GFT AG did not hold any of its own shares, nor did it purchase or sell any of its own shares in the period 1 January 2012 to 30 June 2012.

The following changes in the Company's conditional capital were made between 1 January 2012 and 30 June 2012 relative to 31 December 2011:

Conditional capital

By resolution of the Annual General Meeting on 22 May 2012, Conditional Capital II/2007 was cancelled and § 4 (6) of the Company's Articles amended and published in the Federal Gazette. By resolution of the Annual General Meeting on 22 May 2012, new conditional capital of €10,000,000.00 was created.

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

GFT has once again identified the two segments Services and Resourcing 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 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.

Internal controlling and reporting within the GFT Group, and thus also segment reporting, is based on IFRS accounting principles as applied in the Consolidated Financial Statements. The GFT Group measures the success of its segments by means of segment EBT (earnings before tax). Segment income and results also include transactions between the segments. Intersegment transactions take place at market prices on an arm's length principle.

As a general rule, the assets of the segments include all assets, except for those from income tax and assets attributed to the holding activity. The segment liabilities include all liabilities, except for those from income tax, financing, and liabilities in connection with the holding activity.

For detailed information about the business segments, please refer to the Appendix attached to the Notes to the Consolidated Financial 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/– 30/06/2012	01/01/– 30/06/2011
Total segment revenue	118,683	145,086
Elimination of intersegment revenue	-2,301	-3,283
Group revenue	116,382	141,803
Total segment results (EBT)	5,398	6,213
Non-attributed expenses/income of Group HQ	-2,500	-742
Non-attributed income for elimination of interim results	876	51
Other	9	0
Group result before taxes	3,783	5,522

€ thsd.	30/06/2012	30/06/2011
Total segment assets	116,575	121,434
Non-attributed assets of Group HQ	116	94
Securities	7,426	7,859
Assets from income taxes	5,946	5,703
Other	149	0
Group assets	130,212	135,090
Total segment liabilities	52,878	60,630
Non-attributed liabilities of Group HQ	322	254
Liabilities from income taxes	2,114	3,032
Other	432	0
Group liabilities	55,746	63,916

The reconciliation discloses items which per definition are not components of the segments. Non-attributed items of Group HQ, e.g. from centrally managed issues. Business transactions between the segments are also eliminated in the reconciliation.

Notes – information on business segments – Segment report

GFT Technologies Aktiengesellschaft, Stuttgart (not certified)

	Services		Resourcing
€ thsd.	30/06/2012	30/06/2011	30/06/2012	30/06/2011
External sales	60,849	58,259	55,533	83,544
Inter-segment sales	13	0	2,288	3,283
Total revenues	60,862	58,259	57,821	86,827
Scheduled depreciation	-578	-496	-158	-118
Significant non-cash income/expenditure other than depreciation	-32	-23	0	0
Interest income	47	56	2	4
Interest expenses	-70	-16	-13	-48
Share of net profits of associated companies reported according to the equity method	-13	2	0	0
Segment result (EBT)	4,252	4,564	1,146	1,649
Segment assets	77,827	68,453	38,748	52,981
Shares in associated companies reported according to the equity method	34	46	0	0
Investments in non-current intangible and tangible assets	684	6,960	91	135
Segment liabilities	27,942	21,397	24,936	39,233

	Consolidated		Eliminations		Total
30/06/2011	30/06/2012	30/06/2011	30/06/2012	30/06/2011	30/06/2012
141,803	116,382	0	0	141,803	116,382
	0	-3,283	-2,301	3,283	2,301
141,803	116,382	-3,283	-2,301	145,086	118,683
-634	-763	-20	-27	-614	-736
-70	-28	-47	4	-23	-32
405	239	345	190	60	49
-12	-115	52	-32	-64	-83
	-13	0	0	2	-13
5,522	3,783	-691	-1,615	6,213	5,398
135,090	130,212	13,656	13,637	121,434	116,575
46	34	0	0	46	34
7,116	800	21	25	7,095	775

Segment liabilities 27,942 21,397 24,936 39,233 52,878 60,630 2,868 3,286 55,746 63,916

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 2
€ million	01/01/– 30/06/2012	01/01/– 30/06/2011		30/06/2011
Germany	44.72	79.50	32.67	28.35
UK	18.11	19.23	0.07	0.13
Spain	13.95	13.16	1.21	0.98
France	19.92	15.49	0.10	0.07
USA	5.96	3.46	5.33	0.00
Switzerland	6.19	4.85	0.38	0.17
Other countries	7.53	6.11	0.29	0.30
Total	116.38	141.80	40.05	30.00

1 Determined by client location

2 Group as a whole

Revenue from clients who account for more than 10% each of Group revenue is shown:

	Revenue		Segments in which this revenue is generated
€ million	01/01/– 30/06/2012	01/01/– 30/06/2011	30/06/2012	30/06/2011
Client 1	36.26	66.86	Services, Resourcing	Services, Resourcing

Changes to contingent liabilities and receivables ······························································································································· ·····················································

As of 30 June 2012, there were no significant changes to contingencies and other financial commitments compared to the Consolidated Financial Statements as at 31 December 2011. As at 31 December, there were no contingent receivables.

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

During the period 1 January 2012 to 30 June 2012, the GFT Group invested €162 thousand in intangible assets (1 January–30 June 2011: €6,618 thousand), of which goodwill accounted for €0 (1 January– 30 June 2011: €6,380 thousand), and €638 thousand in tangible assets (1 January–30 June 2011: €498 thousand). There were no significant disinvestments in the reporting period.

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

Compared to the disclosures made in the Notes to the Consolidated Financial Statements as at 31 December 2011, there were no significant transactions. There were also no changes in the composition of related parties nor in relations with such parties.

Events after the interim reporting period ······························································································································· ···········································································

There were no significant events after the interim reporting period which were not considered in the Interim Financial Statements.

Stuttgart, 6 August 2012

GFT Technologies Aktiengesellschaft The Executive Board

Ulrich Dietz Jean-François Bodin Marika Lulay Dr Jochen Ruetz Executive Board (Chairman) Executive Board Executive Board Executive Board

Review report

To GFT Technologies AG, Stuttgart, for the attention of the members of the Supervisory Board

We have reviewed the condensed consolidated interim financial statements – comprising the statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and selected explanatory notes – and the interim Group management report of GFT Technologies AG, Stuttgart, for the period from 1 January to 30 June 2012, 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, 7 August 2012

KPMG AG

Wirtschaftsprüfungsgesellschaft

Hanns-Jörg Schwebler Kirsten Serrano Auditor Auditor

Financial Calendar

Quarterly Financial Report as of 30 September 2012 8 November 2012

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 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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