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GFT Technologies SE — Interim / Quarterly Report 2013
Nov 8, 2013
182_10-q_2013-11-08_d5b789e1-5dd7-4c6c-8aff-e6f576a91b23.pdf
Interim / Quarterly Report
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Quarterly financial Report as of 30 September 2013
ing neer pio digi tal
Key figures according to IFRS
(not certified)
| 9 months | |||||
|---|---|---|---|---|---|
| 01/01/– 30/09/2013 |
01/01/– 30/09/2012 |
Change | |||
| Income Statement | |||||
| Revenue | €m | 185.44 | 174.61 | 6.2% | |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) |
€m | 13.05 | 8.81 | 48.1% | |
| Earnings before interest and taxes (EBIT) | €m | 11.27 | 7.65 | 47.3% | |
| Earnings before taxes (EBT) | €m | 11.21 | 7.80 | 43.7% | |
| Net income | €m | 8.38 | 5.10 | 64.3% | |
| Balance Sheet | |||||
| Other non-current assets | €m | 82.32 | 45.62 | 80.4% | |
| Cash, cash equivalents and securities | €m | 20.45 | 29.08 | -29.7% | |
| Other current assets | €m | 74.62 | 56.78 | 31.4% | |
| Assets | €m | 177.39 | 131.48 | 34.9% | |
| Non-current liabilities | €m | 11.77 | 7.16 | 64.4% | |
| Current liabilities | €m | 82.93 | 48.88 | 69.7% | |
| Shareholders' equity | €m | 82.69 | 75.44 | 9.6% | |
| Share holder s' equity and liabi litie s |
€m | 177.39 | 131.48 | 34.9% | |
| Equity ratio | % | 47% | 57% | -17.5% | |
| Cash flow | |||||
| Cash flow from operating activities | €m | -1.44 | -6.31 | -77.2% | |
| Cash flow from investing activities | €m | -15.77 | -0.10 | 15,670.0% | |
| Cash flow from financing activities | €m | 0.47 | -3.60 | -113.1% | |
| Employees | |||||
| Number of permanent employees (as of 30 September) | no. | 2,029 | 1,371 | 48.0% | |
| Share | |||||
| Earnings per share | € | 0.32 | 0.19 | 64.3% | |
| Average number of outstanding shares (undiluted) | 26,325,946 | 26,325,946 | 0.0% |
(Rounding differences in the Interim Group Management Report due to presentation in € million possible)
Following a planned development of revenue in the first half of 2013, the GFT Group stepped up the pace of growth significantly in the third quarter. Thanks to dynamic organic growth in the GFT Solutions division and the initial consolidation of the newly acquired Sempla Group, consolidated revenue in the third quarter grew by 22% to €71.25 million. After the first nine months, the GFT Group posted revenue growth of 6% to €185.44 million. Pre-tax earnings (EBT) improved over the same period by 44% to €11.21 million. The Company has upgraded its full-year guidance for pre-tax earnings issued in August to around €16 million (formerly at least €15 million) and expects revenue for the full year to increase to at least €260 million (prev. year: €230.69 million) with an EBITDA result of around €19 million (prev. year: €13.35 million).
Contents
Interim Group Management Report
of GFT Technologies Aktiengesellschaft as at 30 September 2013 (not certified)
Business environment
Economic environment
Macroeconomic development
Global growth remained slow in the third quarter of 2013. In its latest World Economic Outlook of October 2013, the International Monetary Fund (IMF) downgraded its forecast for the global economy for the fourth time this year and for the sixth consecutive time. According to the report, global gross domestic product (GDP) will rise by just 2.9% this year, or by 0.3 %-points less than previously expected. High unemployment in Europe, uncertainty about the effects of tougher US monetary policy and weaker growth in the emerging economies are regarded as the main obstacles. In its Economic Outlook of September 2013, the Organisation for Economic Cooperation and Development (OECD) came to a similar conclusion: the major economic nations are recovering, while the risks in the world's emerging economies are growing. The OECD's experts therefore predict that global economic growth will slow to a »snail's pace«.
In contrast to this, however, the OECD believes that the eurozone is on track for recovery. The growth forecast for France was therefore increased from a slight decline to a plus of 0.3% in the current year, while growth in the UK has been upgraded from 0.8% to 1.5%. The monetary union as a whole is expected to pull out of its long and deep recession by the end of the year. The IMF has also upgraded its growth forecast for the eurozone, but still expects a slight decline of 0.4%. The IMF sees this as an improvement but no indication of a broader upturn.
In their autumn reports, the leading German research institutes state that Germany is on the verge of an economic upswing. Nevertheless, they downgraded their forecast for the current year from 0.8% in their spring reports to 0.4%. The IMF and OECD are more upbeat: the IMF expects economic growth of 0.5% for Germany this year, while the OECD's economists predict as much as 0.7%.
The ifo's Business Climate Index was up slightly again in September – for the fifth consecutive time. It rose marginally from 107.6 points in the previous month to 107.7 points.
Sector development
The global IT market once again displayed stronger growth than the economy as a whole. However, the international market research institute IDC reduced its forecast for global IT expenditure in the current year from 4.9% to 4.6% growth. According to Gartner's market researchers, global IT managers are expected to spend a total of \$926 billion for IT services in 2013 – corresponding to growth of 2.2%.
The German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) is optimistic about the situation in Germany. According to its survey of market sentiment in July 2013, 70% of all suppliers of IT services reported increased revenues in the first half of 2013. Suppliers of information technology, telecommunication and entertainment electronics raised sales by 57% over the same period. This upbeat mood is also reflected by the BITKOM's sector barometer of July 2013, which remains high and continues to exceed expectations for the economy as a whole (ifo Index). However, 55% of companies still believe that the current lack of skilled staff is the greatest obstacle to market growth.
As the most important sector for GFT, the financial services industry is the sector investing most heavily in IT. This was the conclusion of a survey conducted by Forrester Research Inc., which examined companies in the Americas, Europe and Asia. One key reason was the implementation of compliance regulations requiring IT support.
Overview of business development
Following a stable and planned development of revenue with strong earnings growth in the first half of 2013, the GFT Group stepped up the pace of growth in the third quarter. Thanks to the strong organic growth of the GFT Solutions division and initial consolidation of Sempla S.r.l., Milan, Italy (Sempla Group), acquired in early July 2013, revenue in the third quarter grew year on year by 22% to €71.25 million (prev. year: €58.23 million). After the first nine months, revenue of €185.44 million was 6% above the prior-year level (€174.61 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 48% to €13.05 million in the first nine months (prev. year: €8.81 million). This figure includes income of €1.73 million from an adjustment to the expected purchase price for Asymo AG, acquired in 2011, as well as costs for the CODE_n innovation drive and CeBIT fair presence amounting to €0.97 million (prev. year: €1.35 million). The newly consolidated Sempla S.r.l. contributed €0.93 million to EBITDA. The Group's pre-tax earnings (EBT) were up 44% to €11.21 million (prev. year: €7.80 million), corresponding to a margin of 6.0% (prev. year: 4.5%).
The GFT Solutions division made very encouraging progress with revenue growth of 30% to €117.82 million in the first nine months (prev. year: €90.48 million). The newly integrated Sempla Group business accounted for €10.20 million of this figure. Adjusted for this revenue contribution, GFT Solutions posted growth of 19%. This strong organic growth was helped by rising demand for outsourcing services and investment banking solutions, especially in the regions UK and Germany. The disproportionately strong increase in earnings, compared to revenue, of 62% to €12.85 million (prev. year: €7.93 million) resulted mainly from a higher utilisation rate and the adjustment of the remaining purchase price for Asymo AG.
The emagine division, which is being realigned as a separate brand in 2013, posted revenue of €67.61 million – 20% down on the previous year (€84.13 million). This decline in revenue resulted mainly from the planned discontinuation of business with a major Third Party Management (TPM) customer. In 2013, the planned reduction in revenue from low-margin TPM business will amount to around €15 million. Realignment costs represented a particular burden on segment earnings in the first six months. Following an upturn in the third quarter, segment earnings for the first nine months amounted to €0.41 million (prev. year: €1.59 million).
Due to the positive development of business and high utilisation of capacity in the GFT Solutions division, headcount at the Spanish development centres was increased by 19% to over 1,000 during the reporting period. All in all, the number of full-time staff employed by GFT increased to 2,029 as at 30 September 2013 (prev. year: 1,371).
GFT share
The mood on the international stock markets was already predominantly bullish in the first half of the year. Although the EURO STOXX 50 (heavy finance bias) was down 4% after six months, the German blue-chip DAX index posted growth of 2%. The mid-cap MDAX and tech stock TecDAX indices were both up 12%. The US stock markets proved to be much more stable than their European counterparts. The Dow Jones, S&P 500 and Nasdaq all reported doubledigit growth in the first half-year. In July 2013, the European Central Bank's commitment to continue its low-interest policy and Federal Reserve President Bernanke's confirmation of America's expansionary monetary policy led to new all-time-highs for the Dow Jones, S&P 500 and Nasdaq. The DAX failed to join them and only the MDAX climbed to new record heights. Bolstered by positive economic data from the eurozone, the upward trend continued on the stock markets with new records for the US indices in early August. However, investor sentiment was knocked back by the Assad regime's gas attack in Syria on 21 August and by the growing danger of a military escalation in the Middle East, resulting in profit-taking at the end of the month. The political situation calmed down somewhat after Russia and Syria agreed on the destruction of chemical weapons in September. The Federal Reserve also surprised the capital markets with its decision not to reduce its bond buying. These circumstances all helped push the German stock markets to new record highs, with an all-time-high for the DAX. Market sentiment was tempered at the end of the month, however, by the government crisis in Italy and fear of an impending budget lockdown in the USA.
Following growth of 27% in the first half of the year, the GFT share was able to follow up this strong performance of the previous months in the third quarter. Starting at just over €4.00 in July, the share held this level in low trading until the middle of the month. After passing the €4.50 mark in mid July, daily trading volumes picked up strongly.
The share closed the month slightly above €5.00 after reaching its month-high of €5.06 (closing Xetra price) on 29 July. The GFT share continued to climb in the reporting month of August and following publication of the halfyearly figures with positive analyst reviews, it reached a month-high of €5.39 (closing Xetra price) on 13 August. At the end of the month, the share suffered slightly from a market environment hit by the Syrian crisis and ended August at €5.08. Trading remained firm with a daily average turnover of 77,262 shares.
After the strong upward trend of the previous months, the Company's share remained slightly above the €5 mark in the first half of September and thus proved very stable on the moving average of the 38-day-line (€5.088). With trading volumes slightly down on the previous month, the GFT share closed September at €4.91 – representing growth of 52% since the beginning of the year.
Shareholder structure
There were no changes in the shareholder structure of GFT Technologies Aktiengesellschaft in the period under review. 28.08% of shares are still held by company founder Ulrich Dietz. Maria Dietz owns 9.68% of shares, while former Supervisory Board member Dr. Markus Kerber holds 5.00%. The free float portion comprises 57.24% of all GFT shares.
Shareholder structure
Share performance indexed
Information on the GFT share
| Q1–3 2013 | Q1–3 2012 | |
|---|---|---|
| Year-opening quotation (daily closing prices Xetra) |
€3.22 | €2.75 |
| Closing quotation on 30 September (daily closing prices Xetra) |
€4.91 | €2.90 |
| Percentage change | +52% | +5% |
| Highest price (daily closing prices Xetra) |
€5.39 (13/08/2013) |
€3.20 (02/03/2012 13/–16/03/2012 20/–21/03/2012) |
| Lowest price (daily closing prices Xetra) |
€3.20 (03/01/2013) (07/01/2013) |
€2.75 (02/01/2012) |
| Number of shares on 30 September | 26,325,946 | 26,325,946 |
| Market capitalisation on 30 September | €129.16 million | €76.35 million |
| Average daily trading volume in shares (Xetra and Frankfurt) |
38,320 | 12,954 |
| Earnings per share | €0.32 | €0.09 |
| ISIN | DE 0005800601 |
|---|---|
| Initial stock market quotation | 28/06/1999 |
| Market segment | Prime Standard |
Development of revenue
In the first nine months of 2013, the GFT Group generated consolidated revenue of €185.44 million, corresponding to growth of 6% over the previous year (€174.61 million). The planned reduction in low-margin Third Party Management (TPM) business amounted to €13.72 million in the first nine months. Adjusted for this discontinued revenue contribution, the Group's core business grew by 15% year on year. In the third quarter, revenue rose by 22% to €71.25 million (prev. year: €58.23 million). This figure includes revenue of €10.20 million from the initial inclusion of the Sempla Group (consolidated in July).
Revenue by segment
The GFT Solutions division achieved revenue growth of 30% to €117.82 million (prev. year: €90.48 million) in the first nine months of 2013. The newly consolidated Sempla Group, integrated into this division, contributed €10.20 million to revenue in the third quarter. Adjusted for this revenue contribution, GFT Solutions achieved growth of 19% in the first nine months. This strong organic growth resulted mainly from projects relating to the introduction of the Single Euro Payments Area (SEPA) as well as from solutions for investment banking and mobile banking. The division's share of consolidated revenue rose to 64% (prev. year: 52%).
In the emagine division, revenue was 20% down on the previous year at €67.61 million for the first nine months of 2013 (prev. year: €84.13 million). This figure includes the planned reduction of revenues in the TPM business of €13.72 million. With its consultancy services for the staffing of technology projects with highly skilled IT and engineering experts, the emagine division reported a decline in revenues of 3% to €65.28 million (prev. year: €67.58 million). The TPM business contributed just €2.33 million (prev. year: €16.55 million) to segment revenue. All in all, this division's share of consolidated revenue fell to 36% (prev. year: 48%).
Revenue by country
Germany, which is affected most by the withdrawal from TPM business, reported a fall in revenue of 10% to €61.21 million in the first three quarters (prev. year: €68.10 million). The GFT Solutions division enjoyed strong growth in this region of 36% to €31.85 million (prev. year: €23.36 million). Germany remained the GFT Group's largest sales market with a share of total revenue of 33% (prev. year: 39%).
Revenue by country
Revenue by segment
| Q1–3 2013 | € million | |
|---|---|---|
| GFT Solutions | 64% | 117.82 |
| emagine | 36% | 67.61 |
| Others | 0% | 0.01 |
The GFT Group recorded its strongest revenue growth in the UK. Driven by strong demand from the investment banking industry, revenues here rose by 54% to €42.27 million (prev. year: €27.45 million). This positive development was driven by both the GFT Solutions division and the emagine division. This region's share of Group revenue rose to 23% (prev. year: 16%).
With a decline in revenue of 5% to €29.83 million, business in France was slightly down on the previous year (€31.32 million). Revenue in this region is generated almost completely with the staffing of technology projects (emagine). The region accounted for 16% (prev. year: 18%) of total Group revenue.
Revenue in Spain was also down by 3% to €19.46 million (prev. year: €20.06 million). Its share of Group revenue remained stable at 10% (prev. year: 11%).
With the acquisition of the Sempla Group, the GFT Group has been represented by ten offices in Italy since the beginning of the third quarter of 2013. Revenue with clients in this region, which was previously classified under »Other countries«, is now shown in the separately disclosed region »Italy«. In the reporting period, revenue in Italy amounted to €14.20 million (prev. year: €3.82 million), of which the Sempla Group accounted for €10.20 million in the third quarter. This region contributed 8% (prev. year: 2%) to total Group revenue.
In the USA, revenue fell by 14% to €7.14 million (prev. year: €8.35 million), accounting for 4% (prev. year: 5%) of Group revenue.
Revenue generated in Switzerland amounted to €6.67 million, corresponding to a decline of 27% on the previous year (€9.14 million). The region's share of Group revenue fell to 4% (prev. year: 5%). The decline is due to reduced capacity utilisation in the GFT Solutions division and the discontinuation of local emagine business in the third quarter of the previous year.
Revenue from »other countries« reached €4.66 million (prev. year: €6.37 million), corresponding to a decline of 27% and a share of Group revenue of 2%.
Revenue by industry
At the beginning of financial year 2013, revenue by industry was reclassified in order to reflect business in the relevant target markets more transparently. Prior-year figures were adjusted accordingly.
With a 65% share of the GFT Group's total revenue (prev. year: 61%), the financial service providers sector remained the most important industry for GFT in the first nine months of 2013. Revenue losses from the discontinued TPM business were completely offset in this sector by revenue growth in the GFT Solutions segment of 32% to €108.83 million (prev. year: €82.74 million). All in all, revenue in this sector increased by 13% to €120.96 million (prev. year: €106.94 million).
The proportion of revenue contributed by the sector »other service providers« fell to 14% (prev. year: 16%). Revenues were down by 10% to €24.99 million (prev. year: €27.84 million). This was due to lower sales in both the emagine segment and GFT Solutions segment.
Revenue in the »other industries« sector remained virtually unchanged at €39.49 million (prev. year: €39.82 million) and accounted for 21% of Group revenue (prev. year: 23%).
Revenue by industry
Earnings position
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the GFT Group rose by 48% to €13.05 million in the first nine months (prev. year: €8.81 million). The newly consolidated Sempla Group contributed €0.93 million to EBITDA, of which €+1.78 million resulted from operating income and €-0.85 million from
costs of purchased services as part of the initial Purchase Price Allocation (PPA). EBITDA includes income of €1.73 million from the adjustment of the expected purchase price for Asymo AG acquired in 2011, as well as costs for the CODE_n innovation drive and CeBIT fair presence amounting to €0.97 million (prev. year: €1.35 million).
Earnings before interest and taxes (EBIT) improved by 47% to €11.27 million (prev. year: €7.65 million).
In the first nine months of 2013, earnings before taxes (EBT) amounted to €11.21 million and were thus 44% up on the previous year (€7.80 million). The operating margin before taxes improved strongly by 1.5 %-points, from 4.5% in the previous year to 6.0%.
In the reporting period, the GFT Group generated earnings after taxes of €8.38 million, corresponding to growth of 64% over the prior-year figure (€5.10 million). The calculated tax ratio fell to 25% (prev. year: 35%). This was mainly due to the tax-free earn-out reduction of Asymo.
Earnings per share rose by €0.13 to €0.32 (prev. year: €0.19 per share) based on 26,325,946 outstanding shares.
Consolidated earnings position by segment
In the first nine months of 2013, the earnings contribution of the GFT Solutions segment rose by 62% to €12.85 million (prev. year: €7.93 million), corresponding to an increase in the operating margin to 10.9% (prev. year: 8.8%). The disproportionately strong increase in earnings, compared to revenue, resulted mainly from a higher utilisation rate and the adjustment of the remaining purchase price for Asymo AG.
Earnings of the emagine segment amounted to €0.41 million after the first nine months of 2013 (prev. year: €1.59 million). This figure was burdened by expenses involved with the division's realignment and the establishment of the brand in the target markets Germany, France and the UK. Due to reduced revenues and low earnings, the operating margin fell to 0.6% (prev. year: 1.9%).
The »others« category comprises balance sheet effects, costs of the holding company and consolidation amounts which cannot be directly charged to either of the two aforementioned divisions. At €-2.05 million, pre-tax earnings of this division in the first nine months were 20% below the prior-year figure (€-1.72 million). This was mainly due to expenses for the CODE_n project and CeBIT fair presence in March 2013.
€ million Q1–3 2012 Q1–3 2013 Q1–3 2012 Q1–3 2013 Q1–3 2012 Q1–3 2013 Q1–3 2012 Q1–3 2013 7.93 12.85 1.59 0.41 -1.72 -2.05 7.80 11.21 GFT Solutions emagine others Total
Earnings by segment
Consolidated earnings position by income and expense items
In the first three quarters of 2013, other operating income rose to €3.19 million (prev. year: €1.64 million). This increase of €1.55 million was mainly due to the partial reversal of an earn-out provision for the remaining Asymo purchase payment as well as to other operating income. This other operating income was mostly generated via the CODE_n partnerships.
The item cost of purchased services – mainly comprising the use of external manpower – fell by €5.62 million to €77.41 million (prev. year: €83.03 million) due to lower revenues in the Third Party Management business and the related purchase of external employees. The cost of purchased services includes a non-recurring write-down of €0.85 million on the order backlog of the acquired company Sempla Group resulting from the Purchase Price Allocation (PPA). The ratio of cost of purchased services to revenue consequently fell year on year by 6 %-points to 42% (prev. year: 48%).
Personnel expenses increased by €11.18 million to €78.03 million in the reporting period (prev. year: €66.85 million). As a proportion of revenue (the so-called »personnel cost ratio«), personnel expenses were 4 %-points above the prior-year figure at 42% (prev. year: 38%). This increase resulted from the strongly increased revenue share of the more labour-intensive GFT Solutions segment to 64% (prev. year: 52%) and the related increase in headcount in this division as at 30 September 2013.
Depreciation of intangible and tangible assets rose slightly to €1.78 million in the first nine months (€1.16 million). The acquisition of the Sempla Group resulted in pro rata depreciation from operating activities of €0.38 million and write-downs on client base and software products from the Purchase Price Allocation (PPA) of €0.27 million.
Other operating expenses rose by 14% to €20.03 million in the reporting period (prev. year: €17.53 million). The main cost elements are operating, administrative and selling expenses, which rose by €2.60 million to €19.14 million (prev. year: €16.54 million). This item also includes exchange rate losses and other taxes.
The financial result fell to €-0.18 million (prev. year: €0.13 million), mainly as a result of increased interest payments. The financial result includes expenditure for the calculated compounding of the remaining purchase price obligation in connection with the acquisition of the Sempla Group amounting to €-0.10 million (prev. year: zero).
In the first nine months, income taxes amounted to €2.83 million and were thus €0.13 million above the prioryear figure (€2.70 million). The calculated tax ratio fell strongly by 10 %-points to 25% (prev. year: 35%). This was due to a more even distribution of profits among the various national subsidiaries and the non-taxable adjustment to the Asymo earn-out provision during the reporting period.
Financial position
As at 30 September 2013, cash, cash equivalents and securities amounted to €20.45 million and were thus €19.97 million below the corresponding figure at the end of 2012 (€40.42 million). This decline resulted from a significant fall in liquid funds, mainly due to the disposal of securities and the purchase price payment for the Sempla Group.
Due to the delayed receipt of payments and the acquisition of the Sempla Group, trade receivables rose by €24.31 million to €68.52 million as at 30 September 2013. At year-end 2012, the figure stood at €44.21 million.
Trade payables – consisting mainly of amounts owing to external employees – amounted to €18.32 million on 30 September 2013. This corresponds to a reduction of €1.51 million compared to 31 December 2012 (€19.83 million). Since the planned winding down of Third Party Management business last year, liabilities have remained correspondingly stable since the beginning of the year.
Cash flows from operating activities amounted to €-1.44 million after the first nine months (prev. year: €-6.31 million). This difference is mainly due to the increased profit for the period, the increase in receivables of €6.52 million, the change in provisions of €3.03 million, the change in other assets of €1.98 million, and the change in trade payables and other liabilities of €2.76 million.
Working capital (the difference between current assets and current liabilities) amounted to €6.80 million as at 30 September 2013 and was thus €30.12 million below the year-end 2012 figure of €36.92 million.
At €-15.77 million, cash flows from investing activities were below the prior-year figure of €-0.10 million. In addition to smaller IT procurements, a significant proportion of capital expenditure resulted from the acquisition of the Sempla Group. The purchase of a new administration building in Stuttgart as the Company's future head office was largely covered by proceeds from the disposal of financial investments.
Cash flows from financing activities amounted to €0.47 million (prev. year: €-3.60 million). This figure concerns the use of short-term credit lines by foreign subsidiaries, mainly in Italy.
Asset position
As of the beginning of 2013, the requirements of IAS 19 (revised) have been applied. As a consequence, actuarial gains and losses must now be recognised in the balance sheet without an effect on profit or loss. This necessitated a retroactive adjustment of various balance sheet items as at 31 December 2012. Further details on this topic are provided in the Notes to the Interim Group Financial Statements.
The balance sheet total of the GFT Group increased by €44.91 million and stood at €177.39 million as at 30 September 2013. At the end of the financial year 2012, the total had amounted to €132.48 million. The acquisition of the Sempla Group played a major role in this development. Further details are provided in the Notes to the Interim Group Financial Statements.
There was an increase in non-current assets of €34.27 million to €82.44 million as at 30 September (31 December 2012: €48.17 million). The rise was largely due to the addition of intangible assets and increased goodwill resulting from the acquisition of the Sempla Group. The increase in property, plant and equipment is mainly attributable to the purchase of the administration building.
As at 30 September 2013, current assets amounted to €94.95 million and were thus €10.64 million above their year-end 2012 level (€84.31 million). There was a sharp increase of €24.31 million in trade receivables to €68.52 million (31 December 2012: €44.21 million), which was opposed by a fall in liquid funds of €16.85 million to €19.06 million (31 December 2012: €35.91 million). The acquisition of the Sempla Group once again played a major role.
Equity of €82.69 million on 30 September 2013 was €4.48 million above the corresponding figure on the balance sheet date of 31 December 2012 (€78.21 million). This change was mainly due to a reduction in the balance sheet loss from €-3.83 million to a balance sheet profit of €0.56 million. As a result of the strong increase in the balance sheet total, the equity ratio amounts to 47% and is thus 12 %-points below the year-end 2012 figure (59%).
132.48 177.39
On the liabilities side, there was a rise in current liabilities of €35.88 million compared to 31 December 2012. This increase results from the changes in other provisions of €8.33 million, in current income tax liabilities of €3.40 million, and in financial liabilities of €7.35 million. There was also an increase in other financial liabilities of €11.58 million and in other liabilities of €6.74 million. These items were mainly affected by the acquisition of the Sempla Group.
This was opposed by a decline in trade payables of €1.51 million to €18.32 million. As at 31 December 2012, the figure had stood at €19.83 million.
As at 30 September 2013, non-current liabilities
177.39 132.48
amounted to €11.77 million and were thus €4.55 million higher than on 31 December 2012. This change resulted mainly from the increase in deferred tax liabilities, due above all to the acquisition of the Sempla Group. The increase in pension provisions and the reduction of other provisions almost offset each other.
The equity/non-current assets ratio – the yardstick for solid balance sheet structures – amounted to 100% as at 30 September 2013 (year-end 2012: 162%). This ratio expresses the relationship between the balance sheet items »equity« and »non-current assets« and provides information about the Company's financial stability.
Employees
As at 30 September 2013, the GFT Group employed a total of 2,029 people. This corresponds to an increase of 658 persons or 48% compared to the same date last year. Headcount is calculated on the basis of full-time staff, whereby part-time staff are included on a pro rata basis.
The major share of this increase in headcount (441 persons) results from the acquisition of the Sempla S.r.l. It is fully disclosed in the GFT Solutions division, whose headcount rose correspondingly by 54%: from 1,225 at the end of the third quarter of 2012 to 1,887 on 30 September 2013. There was a strong increase in headcount in Spain with the addition of 158 staff, taking the total to 1,008 employees (an increase of 19%). The emagine division employed 96 people as of 30 September 2013. The year on year decrease of four persons corresponds to a 4% decline. The »others« category comprises staff with corporate functions and remained unchanged from the same date last year at 46 employees.
As at 30 September 2013, 286 people were employed in Germany (prev. year: 274). The proportion of GFT staff employed outside Germany amounted to 86% (prev. year: 80%).
Employees by country as of 30 September
| 2013 | 2012 | |
|---|---|---|
| Spain | 1,008 | 850 |
| Italy | 441 | 0 |
| Germany | 286 | 274 |
| Brazil | 164 | 129 |
| UK | 45 | 32 |
| Switzerland | 39 | 47 |
| USA | 26 | 23 |
| France | 20 | 16 |
| Total | 2,029 | 1,371 |
Employees by division as of 30 September
| 2013 | 2012 | |
|---|---|---|
| GFT Solutions | 1,887 | 1,225 |
| emagine | 96 | 100 |
| Others | 46 | 46 |
| Total | 2,029 | 1,371 |
The number of freelance staff fell year on year by 36 to 1,070 persons.
Research and development
The GFT Group invested a total of €1.65 million in research and development during the reporting period; and thus 45% more than in the corresponding prior-year period (€1.14 million).
The largest share of this total (€1.46 million or 88%) was accounted for by personnel expenses (prev. year: 78%). In the first nine months of 2013, the GFT Group concentrated its R&D efforts on the following strategic initiatives:
At the SAP Competence Centre, experts develop tailored solutions for financial institutes, which help them integrate SAP software into their existing IT platform. One of the key topics in the first nine months of 2013 was the further development of possible uses for in-memory databases based on SAP HANA technology. This technology is integrated into client solutions in order to significantly reduce the computing time for complex simulations, thus enhancing its use in consultation sessions.
Mobile Finance activities comprise the development of key applications for mobile devices in the financial services sector. In the first six months, investments were made for example in development and integration services for the field of Mobile Finance in order to design and implement tailored IT solutions and services for the finance sector.
In its internal Applied Technologies Group, GFT pools all R&D activities in the field of applied innovation management. Based on the open innovation approach, the Applied Technologies Group initiates and coordinates innovation projects in line with the current solution needs of our clients.
In order to ensure consistently high quality in its global development efforts, software development processes were further optimised in accordance with the international CMMI® (Capability Maturity Model Integration) standard.
Subsequent events
There were no significant events for the GFT Group which occurred after the reporting date of 30 September 2013.
Opportunity and risk report
In the first nine months of 2013, there were no material changes with regard to the comprehensive discussion of opportunities and risks provided in the Management Report accompanying the Group Financial Statements for 2012. The risk position of the GFT Group is thus unchanged.
Forecast report
Macroeconomic development
According to leading economists, the global economy will continue to gain stability in 2013 and 2014 but grow more slowly than previously expected. The main risks are seen as slower growth in the major emerging nations of China, India, Brazil and Russia, the continued expansionary monetary policy of central banks and unresolved budget issues in the USA. In its economic outlook of October 2013, the International Monetary Fund (IMF) therefore downgraded its forecast for global economic growth in the current year from 3.2% to 2.9%. The IMF also predicts slower global growth of 3.6% for 2014, compared to its forecast of 3.8% in July. In its forecast of September 2013, the OECD continued to predict an upturn in the economies of the major industrial nations for the rest of the year, but also sees considerable risks for the global economy if the US Federal Reserve raises interest rates.
The OECD's forecasts for Europe's economic heavyweights in 2013 are much more upbeat than in May. The economists upgraded expected growth in France from a slight decline to growth of 0.3% and raised their growth forecast for the UK from 0.8% to 1.5%. For Germany, they expect an increase in economic output of 0.7%. For the monetary union as a whole, the OECD believes that the long and deep recession will be overcome by the end of the year. The IMF is also more upbeat than before about the eurozone's development in 2013 and now predicts an overall decline of 0.4%, compared to 0.6% in its previous forecast. The outlook for Germany is also much more optimistic. The IMF forecasts GDP growth of 0.5% in 2013 (previously 0.3%). This growth is now expected to reach 1.4% in 2014, instead of 1.3% as previously predicted.
Sector development
The slowdown in growth in China and its negative consequences for the global economy led the IDC's market analysts to once again downgrade their forecast for the global IT market in August 2013. The analysts now predict an increase in global IT spending of 4.6% in the current year, after previously forecasting growth of 4.9%. IDC also reduced its forecast for global spending on IT services from 3.8% to 3.4%.
In its forecast in July 2013, the market research institute Gartner already downgraded its growth outlook for global IT spending in the current year from 4.1% to 2%. Gartner stated that the strong downgrade was mainly due to fluctuations in dollar exchange rates. If exchange rates had remained stable, the revised growth forecast would have been 3.5%. The analysts see a slight increase in Western Europe, as further strategic IT initiatives are expected in this region. Growth in spending is expected to fall in most other regions. For the coming year, Gartner expects growth in global IT spending to pick up again and reach 4.1%. The experts forecast growth of 2.2% in spending on IT services for the current year and an increase of 4.6% in the following year. Growth in IT spending in the banking industry is also expected to exceed the general market level at 2.5% in 2013.
In its economic outlook of March 2013, the industry association BITKOM forecasts market growth for products and services in the IT and telecommunication sector of 5.1% to €2.7 trillion in the current year. The high-tech sector will therefore remain one of the global economy's most important growth drivers. According to the association, ICT spending in the EU – the second-largest IT market with a global share of 21.8% – will grow by 0.9% this year. The market experts forecast growth of 6.5% for the USA (with a global share of 26.8%). In Germany, expected ICT market growth of 1.8% to €141.3 billion in the current year will once again easily outpace general economic growth.
Spending on IT services (projects, consulting and outsourcing) is likely to grow by 2.5% to around €36 billion in the current year. Following a positive first six months, the association's sector barometer of July 2013 indicated that the German high-tech sector remained optimistic for the second half of the year. Around three quarters of all suppliers of information technology, telecommunication and entertainment electronics expect rising revenues in the second half of 2013.
Revenue and earnings forecast
Following a first six months of 2013 in line with expectations and a good third quarter well above the prior-year figures – thanks to strong organic growth of GFT Solutions and the Sempla Group acquisition – the GFT Group expects business to make further progress in the year as a whole. The Executive Board has therefore upgraded its fullyear guidance for pre-tax earnings issued in August to around €16 million (formerly at least €15 million) and expects revenue for the full year to increase to at least €260 million (prev. year: €230.69 million) with an EBITDA result of around €19 million (prev. year: €13.35 million).
In the GFT Solutions division, the Executive Board expects further solid organic growth in the fourth quarter of 2013, as well as a further strong growth impetus from the acquisition of the Italian company Sempla Group. GFT Solutions is now present in Europe's fourth-largest IT market with almost 500 employees and an extended portfolio of solutions for the finance sector. In addition to expanding its position on the Italian market, further growth opportunities are expected from the positioning of selected competencies of the Sempla Group – especially its expertise in the general banking sector – with clients in Europe and the USA.
In the fourth quarter of 2013, demand for IT solutions to implement new compliance regulations in the banking sector will continue to rise. The further optimisation of core banking systems will also remain a key topic. One main growth driver will be the introduction of the Single Euro Payments Area (SEPA), which according to EU ordinance must have been completed by 1 February 2014.
Further growth for the GFT Solutions division is expected to arise from increased competition in the finance sector, which will force established banks to develop innovative business models. The Executive Board therefore expects banks to invest increasingly in new technologies for mobile payments and to use social media to strengthen customer retention. In the field of mobile banking, financial institutes will be investing increasingly in security solutions. Further growth opportunities are expected from the acquired consulting expertise and expanded solution portfolio in general banking from the acquisition of the Sempla Group.
The emagine division will continue to drive its realignment as an expert for staffing technology projects with IT and engineering specialists. The division is focusing on those growth industries in Germany, France and the UK which are expected to profit most from an economic upturn in the coming years. In the field of IT, emagine focuses on future topics and technology trends such as Big Data, Business Intelligence, Social Media and IT Security, in order to tap new growth fields. In the field of engineering, growth is expected from the rising demand for highly skilled engineers in the field of plant and machine construction, as well as renewable energies. In the current financial year, emagine will not be able to fully compensate for revenue losses from the further reduction of its low-margin Third Party Management business.
In 2013, the division will also be burdened by costs for repositioning business under its own brand and for the realignment of its internal structures. In terms of earnings, the division displayed a positive turnaround in the third quarter, which is expected to continue in the fourth quarter.
Following the scheduled progress of business in the first half of the year, the Executive Board raised its revenue forecast for the financial year 2013 from €238 million to at least €260 million with the announcement of the Sempla Group acquisition on 30 May 2013. The adjusted earnings forecast was made on publication of the Half-Yearly Financial Report. Following a good third quarter, the Executive Board has upgraded its full-year guidance for pre-tax earnings issued in August to around €16 million (formerly at least €15 million) and expects an EBITDA result for the full year of around €19 million (prev. year: €13.35 million). For the financial year 2015, the Executive Board continues to expect consolidated revenue of around €400 million and an operating pre-tax profit margin of over 6%. The underlying business plan assumes steady organic growth in combination with targeted acquisitions in both business divisions.
Stuttgart, 6 November 2013
GFT Technologies Aktiengesellschaft
The Executive Board
Chairman of the Executive Board
Member of the Executive Board
Member of the Executive Board
Ulrich Dietz Jean-François Bodin Marika Lulay Dr. Jochen Ruetz Member of the Executive Board
Consolidated Income Statement
for the period from 1 January to 30 September 2013, IFRS GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
| 9 months | Third quarter | ||||
|---|---|---|---|---|---|
| € | 01/01/– 30/09/2013 |
01/07/– 30/09/2013 |
01/07/– 30/09/2012 |
||
| Revenue | 185,443,589,25 | 174,604,538,26 | 71,256,021,76 | 58,222,314.78 | |
| Other operating income | 3,186,079,44 | 1,641,389,03 | 767,047,20 | 181,922.80 | |
| 188,629,668,69 | 176,245,927,29 | 72,023,068,96 | 58,404,237.58 | ||
| Costs of purchased services | 77,409,224,26 | 83,032,113,12 | 28,857,410,10 | 28,041,966.58 | |
| Personnel expenses: | |||||
| – Salaries and wages | 64,379,185.32 | 55,811,069.99 | 23,615,212.64 | 16,715,209.77 | |
| – Social security and expenditures for retirement pensions | 13,650,728.66 | 11,041,547.93 | 5,550,144.81 | 3,719,667.94 | |
| 78,029,913.98 | 66,852,617.92 | 29,165,357.45 | 20,434,877.71 | ||
| Depreciation on non-current intangible assets and of tangible assets | 1,779,107.20 | 1,164,692.42 | 1,052,008.61 | 401,602.33 | |
| Other operating expenses | 20,027,397.29 | 17,528,672.45 | 7,029,386.69 | 5,529,525.10 | |
| Result from operating activities | 11,384,025.96 | 7,667,831.38 | 5,918,906.11 | 3,996,265.86 | |
| Other interest and similar income | 264,908.53 | 340,385.18 | 50,911.22 | 101,783.05 | |
| Profit share from associates | -4,211.63 | -19,284.00 | -2,280.21 | -6,973.46 | |
| Depreciation on securities | 105,430.88 | 0.00 | 60.00 | 0.00 | |
| Interest and similar expenses | 331,181.03 | 186,821.22 | 259,005.19 | 71,574.68 | |
| Financial result | -175,915.01 | 134,279.96 | -210,434.18 | 23,234.91 | |
| Earnings before taxes | 11,208,110.95 | 7,802,111.34 | 5,708,471,93 | 4,019,500.77 | |
| Taxes on income and earnings | 2,829,020.24 | 2,697,920.03 | 1,688,644.30 | 1,275,578.49 | |
| Net income | 8,379,090.71 | 5,104,191.31 | 4,019,827.63 | 2,743,922.28 | |
| Net income for the period is allocated to: | |||||
| – Shareholders of the parent company | 8,340,391.85 | 5,104,191.31 | 4,019,827.63 | 2,743,922.28 | |
| – Non-controlling interests | 38,698.86 | 0.00 | 0.00 | 0.00 | |
| Net earnings per share – undiluted | 0.32 | 0.19 | 0.15 | 0.10 | |
| Net earnings per share – diluted | 0.32 | 0.19 | 0.15 | 0.10 |
Consolidated Statement of comprehensive INCOME
for the period from 1 January to 30 September 2013, IFRS GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
| 9 months | Third quarter | ||||
|---|---|---|---|---|---|
| € | 01/01/– 30/09/2013 |
01/01/– 30/09/2012 |
01/07/– 30/09/2013 |
01/07/– 30/09/2012 |
|
| Net income | 8,379,090,71 | 5,104,191,31 | 4,019,827,63 | 2,743,922,28 | |
| A.) Components never reclassified to the income statement | |||||
| Actuarial gains/losses | 0.00 | -1,212,920,77 | 0.00 | -398,703,92 | |
| Income taxes on components of other result | 0.00 | 334,110,71 | 0.00 | 108,765,77 | |
| Other (partial) result A.) | 0.00 | -878,810,06 | 0.00 | -289,938,15 | |
| B.) Components that can be reclassified to the income statement | |||||
| Financial assets available for sale (securities): | |||||
| – Change of fair value recognised in equity during the financial year |
456,316.16 | 148,140.00 | 154,000.00 | 75,369.25 | |
| 456,316.16 | 148,140.00 | 154,000.00 | 75,369.25 | ||
| Exchange differences on translating foreign operations: | |||||
| – Profits/losses during the financial year | -402,826.83 | 130,954.86 | -172,945.59 | -235,905,63 | |
| -402,826.83 | 130,954.86 | -172,945.59 | -235,905.63 | ||
| Income taxes on components of other result | -112,509.21 | -8,235.50 | 0.00 | -8,235.50 | |
| Other (partial) result B.) | -59,019.88 | 270,859.36 | -18,945.59 | -168,771.88 | |
| Other result | -59,019.88 | -607,950.70 | -18,945.59 | -458,710.03 | |
| Total result | 8,320,070.83 | 4,496,240.61 | 4,000,882.04 | 2,285,212.25 | |
| Total result is allocated to: | |||||
| – Shareholders of the parent company | 8,281,371.97 | 4,496,240.61 | 4,000,882.04 | 2,285,212.25 | |
| – Non-controlling interests | 38.698.86 | 0.00 | 0.00 | 0.00 |
Consolidated Balance Sheet
as at 30 September 2013, IFRS GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
Assets
| € | 30/09/2013 | 31/12/2012 adjusted* |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 9.206.528.45 | 737,212.65 |
| Goodwill | 59.132.419.18 | 35,949,217.28 |
| Tangible assets | 7.243.204.66 | 3,208,376.73 |
| Securities | 118.130.45 | 3,189,680.45 |
| Financial assets, accounted for using the equity method | 25.979.69 | 30,191.32 |
| Other financial assets | 960.206.77 | 410,502.75 |
| Current tax assets | 325.552.93 | 415,212.93 |
| Deferred tax assets | 5.427.024.68 | 4,231,941.18 |
| 82.439.046.81 | 48,172,335.29 | |
| Current assets | ||
| Trade receivables | 68.523.328.76 | 44,206,480.67 |
| Securities | 1.274.000.00 | 1,316,100.00 |
| Current tax assets | 715.568.41 | 918,103.24 |
| Cash and cash equivalents | 19.058.803.27 | 35,911,786.55 |
| Others | 747.994.90 | 416,363.25 |
| Other assets | 4.630.100.50 | 1,542,577.73 |
| 94.949.795.84 | 84,311,411.44 | |
| 177,388,842,65 | 132,483,746.73 |
* We refer to Note 1 of the Interim Group Financial Statements.
Shareholders' Equity and Liabilities
| € | 30/09/2013 | 31/12/2012 adjusted* |
|---|---|---|
| Shareholders' equity | ||
| Share capital | 26,325,946.00 | 26,325,946.00 |
| Capital reserve | 42,147,782.15 | 42,147,782.15 |
| Retained earnings | 15,243,349.97 | 15,243,349.97 |
| Changes in equity not affecting net income | ||
| Actuarial gains/losses | -1,869,539.05 | -1,891,432.39 |
| Foreign currency translations | 176,116.27 | 578,943.10 |
| Reserve of market assessment for securities | -20,016.00 | -363,822.95 |
| Consolidated balance sheet gain, loss | 564,152.71 | -3,827,347.23 |
| Other equity | -6,263,000.00 | 0.00 |
| Equity of the shareholders of the parent company | 76,304,792.05 | 78.213.418,65 |
| Non-controlling interests | 6,383,775.05 | 0.00 |
| 82,688,567.10 | 78,213,418.65 | |
| Liabilities | ||
| Non-current liabilities | ||
| Provisions for pensions | 6,430,662.27 | 3,687,637.36 |
| Other provisions | 916,003.10 | 2,934,677.79 |
| Deferred tax liabilities | 4,420,891.66 | 593,418.42 |
| 11,767,557.03 | 7,215,733.57 | |
| Current liabilities | ||
| Other provisions | 26,418,383.98 | 18,089,885.88 |
| Current income tax liabilities | 4,151,338.87 | 752,481.50 |
| Financial liabilities | 7,348,049.98 | 0.00 |
| Trade payables | 18,322,830.38 | 19,834,818.88 |
| Other financial liabilities | 12,264,144.13 | 685,418.71 |
| Other liabilities | 14,427,971.18 | 7,691,989.54 |
| 82,932,718.52 | 47,054,594.51 | |
| 177,388,842.65 | 132,483,746.73 |
* We refer to Note 1 of the Interim Group Financial Statements.
Consolidated Statement of Changes in Equity
as at 30 September 2013, IFRS GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
| € | Attributable to the shareholders of the parent company | ||||||
|---|---|---|---|---|---|---|---|
| Notes | Subscribed | Capital | Retained | Other equity | |||
| capital | reserve | earnings | |||||
| Other | |||||||
| retained earnings |
|||||||
| As at 01/01/2012 | 4 | 26,325,946.00 | 42,147,782.15 | 12,743,349.95 | 0.00 | ||
| Retroactive adjustment acc. to IAS 19R | 1 | ||||||
| Adjusted amount 01/01/2012 | 26,325,946.00 | 42,147,782.15 | 12,743,349.95 | 0.00 | |||
| Retroactive adjustment acc. to IAS 19R | |||||||
| Dividend payment May 2012 | 4 | ||||||
| Total income and expenses for the period 01/01/–30/09/2012 | |||||||
| As at 30/09/2012 | 26,325,946.00 | 42,147,782.15 | 12,743,349.95 | 0.00 | |||
| As at 01/01/2013 | 4 | 26,325,946.00 | 42,147,782.15 | 15,243,349.97 | 0.00 | ||
| Retroactive adjustment acc. to IAS 19R | |||||||
| Adjusted amount 01/01/2013 | 26,325,946.00 | 42,147,782.15 | 15,243,349.97 | 0.00 | |||
| Effects from IAS 19R | 1 | ||||||
| Dividend payment May 2013 | 4 | ||||||
| Changes in the consolidated Group | 2 | -6,263,000.00 | |||||
| Total income and expenses for the period 01/01/–30/09/2013 | |||||||
| As at 30/06/2013 | 26,325,946.00 | 42,147,782.15 | 15,243,349.97 | -6,263,000.00 |
* Net income
| Attributable to the shareholders of the parent company | ||||||
|---|---|---|---|---|---|---|
| Total share capital |
Non-controlling interests |
Total | Consolidated balance sheet Profits/losses |
Other result | ||
| Actuarial | Market | Foreign | ||||
| Profits (+) | gains/losses | assessment | currency | |||
| Losses (-) | for securities | translations | ||||
| 75,615,784.46 | 0.00 | 75,615,784.46 | -5,713,702.92 | 0.00 | -615,885.24 | 728,294.52 |
| -720,874.64 | -720,874.64 | -720,874.64 | ||||
| 74,894,909.82 | 0.00 | 74,894,909.82 | -5,713,702.92 | -720,874.64 | -615,885.24 | 728,294.52 |
| -878,810.06 | -878,810.06 | -878,810.06 | ||||
| -3,948,891.90 | -3,948,891.90 | -3,948,891.90 | ||||
| 5,375,050.67 | 5,375,050.67 | 5,104,191.31* | 139,904.50 | 130,954.86 | ||
| 75,442,258.53 | 0.00 | 75,442,258.53 | -4,558,403.51 | -1,599,684.70 | -475,980.74 | 859,249.38 |
| 80,104,851.04 | 0.00 | 80,104,851.04 | -3,827,347.23 | -363,822.95 | 578,943.10 | |
| -1,891,432.39 | -1,891,432.39 | 0.00 | -1,891,432.39 | 0.00 | ||
| 78,213,418.65 | 78,213,418.65 | -3,827,347.23 | -1,891,432.39 | -363,822.95 | 578,943.10 | |
| 21,893.33 | 21,893.33 | 21,893.33 | ||||
| -3,948,891.90 | -3,948,891.90 | -3,948,891.90 | ||||
| 82,076.19 | 6,345,076.19 | -6,263,000.00 | ||||
| 8,320,070.83 | 38,698.86 | 8,281,371.97 | 8,340,391.85* | 0.00 | 343,806.95 | -402,826.83 |
| 82,688,567.10 | 6,383,775.05 | 76,304,792.05 | 564,152.72 | -1,869,539.06 | -20,016.00 | 176,116.27 |
Consolidated cash flow statement
for the period from 1 January to 30 September 2013, IFRS GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
| 9 months | ||||
|---|---|---|---|---|
| Notes € |
01/01/– 30/09/2013 |
01/01/– 30/09/2012 |
||
| Net income | 8,379,090.71 | 5,104,191.31 | ||
| Taxes on income and earnings | 2,829,020.24 | 2,697,920.03 | ||
| Interest income | 175,915.01 | -134,279.96 | ||
| Interest paid | -77,010.67 | -4,872.98 | ||
| Income taxes paid | -1,656,381.22 | -1,468,337.82 | ||
| Depreciation on intangible and tangible assets | 1,779,107.20 | 1,164,692.42 | ||
| Changes in provisions | 3,285,763.35 | 254,434.36 | ||
| Other non-cash expenses/income | -156,328.42 | 241,732.40 | ||
| Profit from the disposal of tangible and intangible assets as well as financial assets |
-41,688.72 | 4,691.00 | ||
| Changes in trade receivables | -9,547,783.75 | -3,023,883.29 | ||
| Changes in other assets | 962,097.11 | -1,014,513.67 | ||
| Changes in trade liabilities and other liabilities | -7,372,887.17 | -10,129,565.90 | ||
| Cash flow from operating activities | -1,441,086.33 | -6,307,792.10 | ||
| Cash receipts from sales of tangible assets | 7,000.00 | 0.00 | ||
| Cash payments to acquire tangible assets | -4,139,314.94 | -1,228,284.74 | ||
| Cash payments to acquire non-current intangible assets 7 |
-124,865.21 | -175,091.75 | ||
| Cash receipts from sales of financial assets | 3,517,950.00 | 1,000,000.00 | ||
| Cash payments / receipts from the acquisition of consolidated companies net of cash and cash equivalents acquired |
-15,254,260.79 | 0.00 | ||
| Interest received | 225,699.44 | 303,882.13 | ||
| Cash flow from investing activities | -15,767,791.50 | -99,494.36 | ||
| Cash receipts from taking out short-term or long-term loans | 4,417,305.26 | 352,944.89 | ||
| Payments to shareholders | -3,948,891.90 | -3,948,891.90 | ||
| Cash flow from financing activities | 468,413.36 | -3,595,947.01 | ||
| Effect of exchange rate changes on cash and cash equivalents | -112,518.81 | 79,332.45 | ||
| Change in cash funds from cash-relevant transactions | -16,852,983.28 | -9,923,901.02 | ||
| Cash funds at the beginning of the period | 35,911,786.55 | 32,472,593.37 | ||
| Cash funds at the end of the period | 19,058,803.27 | 22,548,692.35 |
as at 30 September 2013, IFRS GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
1. Fundamentals for the GFT Group's Interim Financial Statements ······························································································································· ····
These unaudited Interim Group 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 2012, the Interim Financial Statements include condensed reporting in the Notes to the Consolidated Financial Statements and comply with the International Financial Reporting Standards (IFRS) as adopted by the European Union.
With the exception of the changes stated below, the same accounting and valuation methods were used in these Interim Group Financial Statements as in the last Group Financial Statements as at 31 December 2012. New or amended standards and interpretations to be applied as of the beginning of the financial year 2013 had the following impact on the Interim Group Financial Statements:
In June 2011, the IASB published amendments to IAS 19 »Employee Benefits« which were adopted by the EU in June 2012. Application of the amended standard is mandatory for all financial statements prepared for financial years beginning on or after 1 January 2013, and thus for the first time in the current financial year.
The Group previously recognised pensions and similar obligations according to the so-called corridor approach. With the mandatory adoption of IAS 19 revised as of 2013, the corridor approach is no longer to be used and actuarial gains and losses are now recognised in other comprehensive income.
This leads to an increase in provisions for pensions and similar obligations as well as a decrease in equity.
The Consolidated Income Statement will no longer contain actuarial gains and losses in future as these are now recognised in other comprehensive income.
A further change is the introduction of the net interest rate. Net pension obligations are discounted with the underlying interest rate used for the valuation of gross pension obligations.
Mandatory retrospective application in accordance with IAS 19R has resulted in the following changes to balance sheet items as at 31 December 2012:
Effects on the Consolidated Balance Sheet from the amendment of IAS 19
| € thsd. | 31/12/2012 | 01/01/2012 |
|---|---|---|
| Equity | 1,891.43 | -720.87 |
| Pension provisions | 2,612.14 | 996.29 |
| Balance of deferred taxes | -720.71 | -275.42 |
The effects on the Consolidated Income Statement for the first nine months of financial year 2012 are only minor. There was no change in earnings per share.
Maintaining the old version of IAS 19 would have resulted in the following changes to the Consolidated Balance Sheet and Consolidated Income Statement.
Effects on the Consolidated Balance Sheet from the maintenance of IAS 19
| € thsd. | 30/09/2013 |
|---|---|
| Equity | 65.40 |
| Pension provisions | -90.21 |
| Balance of deferred taxes | -24.81 |
Effects on the Consolidated Income Statement from the maintenance of IAS 19
| € thsd. | 30/09/2013 |
|---|---|
| EBT | 83.83 |
| Interest result | 53.63 |
| Income taxes | 14.75 |
| Group result | 69.08 |
There would also have been no change in earnings per share as of the end of the third quarter of financial year 2013.
Other comprehensive income was disclosed for the first time according to IAS 1.82A. The effects mainly concerned the disclosure of actuarial gains and losses in other comprehensive income, which are never reclassified into the Income Statement.
Other new and revised standards to be adopted as of 1 January 2013 (IAS 12/IFRS 7/IFRS 13) have no material impact on the Interim Group Financial Statements.
In financial year 2012, the structure of the cash flow statement was amended in accordance with IAS 1.41 in order to improve presentation. The amounts for taxes paid and interest paid and received disclosed in the footnotes of the previous year were integrated into the calculation of the cash flow statement. Moreover, the item »other changes in
equity«, which includes currency translation differences of subsidiaries, was distributed among the changes in assets and liabilities in the reporting period while currency translation differences in cash and cash equivalents were disclosed separately.
In drawing up these Interim Group 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.
2. Changes to the consolidated Group and its associated companies ······························································································································
The following changes to the scope of consolidation have occurred since the Group Financial Statements were closed on 31 December 2012:
On 26 February 2013, GFT Technologies AG, Stuttgart, purchased Neckarsee 283. VV GmbH. On 21 March 2013, the company's name was changed to GFT Beteiligungs-GmbH. Its initial consolidation did not have any major effect on the Group's assets, financial and earnings position.
GFT Holding Italy S.r.l., Milan, Italy, was founded by GFT Technologies AG, Stuttgart, on 16 May 2013. The company's share capital amounts to €10 thousand and was fully paid on 6 May 2013. The company's initial consolidation had no material impact on the Group's assets, financial and earnings position.
In the first nine months of financial year 2013, the following adjustment was made to the outstanding obligation from the acquisition of GFT Financial Solutions AG, Opfikon, Switzerland, due to a change in the expected value resulting from reduced earnings expectations:
| € thsd. | |
|---|---|
| Carrying value as of 1 January 2013 | 3,133 |
| Adjustment of conditional consideration | -1,282 |
| Carrying value as of 30 June 2013 | 1,851 |
| Payment of the 2nd tranche | 48 |
| Reversal of 2nd tranche recognised in profit and loss | 528 |
| Carrying value as of 30 September 2013 | 1,275 |
As a consequence, the payment obligation owed to the former shareholders has fallen to €1,275 thousand. The obligation is to be settled in the third quarter of 2014.
In the course of the Two Brand Strategy, the following changes to company names were made in January 2013.
- a) emagine GmbH was renamed as emagine TPM GmbH as of 23 January 2013.
- b) GFT Resource Management GmbH was renamed as emagine GmbH as of 13 February 2013.
- c) GFT Flexwork GmbH was renamed as emagine Flexwork GmbH as of 11 January 2013.
- d) GFT Technologies S.A.R.L. was renamed as emagine S.A.R.L. as of 8 January 2013.
The registered office and purpose of the companies did not change as a result of the name changes.
In accordance with the merger agreement of 22 April 2013, emagine TPM GmbH, Eschborn, was merged with emagine GmbH, Eschborn, with effect from 26 June 2013. The merger had no effect on the Group's assets, financial and earnings position.
3. Business combinations ······························································································································· ·························································································································
Business combinations in the third quarter of 2013
In an agreement dated 30 May 2013, GFT AG acquired an 80% stake in the Italian IT service provider Sempla S.r.l., Milan, Italy, via the subsidiary GFT Holding Italy S.r.l. (Segment Solutions). The purchase price for 80% of share capital was paid in the amount of €20,712 thousand and carried as a variable purchase price liability in the amount of €4,339 thousand.
A put and call option agreement was concluded for the remaining 20% of shares in Sempla S.r.l. The deal was closed on 3 July 2013 and the acquired company has since been controlled by GFT AG. The Sempla Group is one of Italy's leading IT consultancies, specialising in commercial and private banking, as well as insurance. With 460 employees, the company generated revenues of over €44 million in 2012 with earnings before taxes of €4.08 million.
Sempla's range of services adds top-quality consulting know-how on the Italian market and acclaimed expertise in the field of banking to the existing portfolio of GFT Solutions. This creates synergies for the further penetration of the Italian market and offers GFT clear growth opportunities with existing and new clients in Europe and the USA.
The goodwill resulting from the purchase amounts to €23,450 thousand, which not only reflects the considerable synergy effects and expected cross-selling effects, but also the expected growth in the portfolio of GFT Solutions. Goodwill is not tax deductible.
The transaction costs for the acquisition amount to €315 thousand and were recognised in profit and loss.
The fair value of the non-controlled shares was calculated with a linear extrapolation of the consideration granted. A linear connection was anticipated between the company value, the consideration granted and the fair value of the non-controlled shares.
In this connection, a financial liability in the amount of the cash value of the repurchase price for these shares (€6,263 thousand) was recognised, which will be recognised in profit and loss in the following periods in accordance with IAS 39.
The purchase price for the 80% of shares in Sempla S.r.l. carried in the balance sheet thus consists of the following:
| € thsd. | Purchase price |
|---|---|
| For 80% stake | |
| Paid in cash | 20,712 |
| Variable purchase price liability | 4,339 |
| Total purchase price | 25,051 |
As the purchase price liability and the put and call option for the remaining 20% depend on the future earnings of Sempla S.r.l., the payment range from these agreements lies between €0 thousand and €10,602 thousand.
The amounts for each major group of acquired assets and assumed liabilities at the time of acquisition are shown below:
| € thsd. | Fair value at time of purchase |
|---|---|
| Goodwill | 23,450 |
| Intangible assets | 9,149 |
| Office and factory equipment | 921 |
| Order backlog | 1,708 |
| Trade receivables | 15,233 |
| Other assets | 4,085 |
| Cash and cash equivalents | 5,458 |
| Total assets | 60,003 |
| Provisions for pensions | 2,552 |
| Other provisions | 3,432 |
| Deferred tax liabilities | 4,509 |
| Current income tax liabilities | 629 |
| Trade payables | 3,178 |
| Financial liabilities | 2,931 |
| Other liabilities | 11,376 |
| Total liabilities | 28,607 |
The acquired receivables refer to trade receivables. The fair value of acquired receivables amounts to €15,233 thousand, while the gross amount is €16,011 thousand. Adjusted receivables as of the purchase date amount to €778 thousand.
In accordance with IFRS 3.23, no contingent liabilities were recognised.
As of 30 September 2013, there were no significant changes to contingent liabilities.
Since the date of acquisition (i.e. July 2013), Sempla S.r.l. has generated third-party sales of €11,004 thousand and contributed €116 thousand to the consolidated operating result of financial year 2013. If the acquisition had already taken place in January 2013, third-party sales of €33,713 thousand and an earnings contribution of €485 thousand would have been generated.
The initial consolidation of the Sempla Group was made on a provisional basis.
4. Changes in equity ······························································································································· ······························································································································· ·······
For the changes in equity capital between 1 January 2013 and 30 September 2013, we refer to the Consolidated Statement of Changes in Equity which is disclosed separately.
As of 30 September 2013, 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 2012). These shares are bearer shares and all grant equal rights.
In June 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 Technologies AG. In accordance with the adopted resolution of the Annual General Meeting of 15 May 2013, 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 Technologies AG.
There were no changes in Authorised Capital or Conditional Capital in the period 1 January 2013 to 30 September 2013 compared to 31 December 2012. As of 30 September 2013, GFT Technologies 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 2013 to 30 September 2013.
5. Segment reporting ······························································································································· ······························································································································· ·····
GFT has identified the two segments GFT Solutions and emagine 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 GFT Solutions segment. The emagine segment focuses on the placement of freelance IT specialists and engineers.
Internal controlling and reporting within the GFT Group, and thus also segment reporting, is based on IFRS accounting principles as applied in the Group 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 table on page 28 and 29. It also includes disclosures concerning revenue from external clients for each group of comparable products and services.
information on business segments – Segment report
GFT Technologies Aktiengesellschaft, Stuttgart (not certified)
| GFT Solutions | emagine | ||||
|---|---|---|---|---|---|
| € thsd. | 30/09/2013 | 30/09/2012 | 30/09/2013 | 30/09/2012 | |
| External sales | 117,821 | 90,476 | 67,607 | 84,129 | |
| Inter-segment sales | 444 | 29 | 1,187 | 3,133 | |
| Total revenues | 118,265 | 90,505 | 68,794 | 87,262 | |
| Scheduled depreciation | -1,542 | -910 | -144 | -195 | |
| Significant non-cash income/expenditure other than depreciation |
149 | -38 | 0 | 0 | |
| Interest income | 87 | 73 | 2 | 3 | |
| Interest expenses | -322 | -96 | -21 | -18 | |
| Share of net profits of associated companies | |||||
| reported according to the equity method | -4 | -19 | 0 | 0 | |
| Segment result (EBT) | 12,853 | 7,929 | 410 | 1,587 | |
| Segment assets | 133,563 | 77,851 | 32,177 | 39,861 | |
| Shares in associated companies reported according to the equity method | 26 | 28 | 0 | 0 | |
| Investments in non-current intangible and tangible assets | 25,422 | 1,250 | 58 | 108 | |
| Segment liabilities | 64,054 | 27,840 | 17,919 | 25,250 |
* Please refer to point 1 of the Notes to the Interim Group Financial Statements as of 30 September 2013 regarding adjustments to the previous year.
| Total | Eliminations | Consolidated | |||||
|---|---|---|---|---|---|---|---|
| 30/09/2013 | 30/09/2012 | 30/06/2013 | 30/09/2012 | 30/09/2013 | 30/09/2012 | ||
| 185,428 | 174,605 | 16 | 0 | 185,444 | 174,605 | ||
| 1,631 | 3,162 | -1,631 | -3,162 | 0 | 0 | ||
| 187,059 | 177,767 | -1,615 | -3,162 | 185,444 | 174,605 | ||
| -1,686 | -1,105 | -93 | -60 | -1,779 | -1,165 | ||
| 149 | -38 | 7 | -204 | 156 | -242 | ||
| 89 | 76 | 176 | 264 | 265 | 340 | ||
| -343 | -114 | 12 | -73 | -331 | -187 | ||
| -4 | -19 | 0 | 0 | -4 | -19 | ||
| 13,263 | 9,516 | -2,055 | -1,714 | 11,208 | 7,802 | ||
| 165,740 | 117,712 | 11,649 | 14,375 | 177,389 | 132,087 | ||
| 26 | 28 | 0 | 0 | 26 | 28 | ||
| 25,480 | 1,358 | 2,235 | 45 | 27,715 | 1,403 | ||
| 81,973 | 53,090 | 12,727 | 3,554 | 94,700 | 56,644 | ||
The reconciliation of the segment figures to the corresponding figures in the Group Financial Statements is as follows:
| € thsd. | 01/01/– | 01/01/– |
|---|---|---|
| 30/09/2013 | 30/09/2012 adjusted* |
|
| Total segment revenue | 187,059 | 177,767 |
| Occasionally occurring revenue | 16 | 0 |
| Elimination of intersegment revenue | -1,631 | -3,162 |
| Group revenue | 185,444 | 174,605 |
| Total segment results (EBT) | 13,263 | 9,516 |
| Non-attributed expenses/income of Group HQ | -1,358 | -814 |
| Non-attributed income for elimination of interim results | 0 | -879 |
| Other | -697 | -21 |
| Group result before taxes | 11,208 | 7,802 |
| € thsd. | 30/09/2013 | 30/09/2012 |
|---|---|---|
| Total segment assets | 165,740 | 117,712 |
| Non-attributed assets of Group HQ | 315 | 116 |
| Securities | 1,392 | 6,523 |
| Assets from income taxes | 6,819 | 7,058 |
| Other | 2,800 | 678 |
| Group assets | 177,389 | 132,087 |
| Total segment liabilities | 81,973 | 53,090 |
| Non-attributed liabilities of Group HQ | 246 | 372 |
| Liabilities from income taxes | 12,335 | 2,816 |
| Other | 146 | 366 |
| Group liabilities | 94,700 | 56,644 |
* Please refer to point 1 of the Notes to the Interim Group Financial Statements as of 30 September 2013 regarding adjustments to the previous year.
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
Due to reduced earnings expectations for GFT Financial Solutions AG, as described in point 2, the segment liabilities of GFT Solutions were reduced by €1,282 thousand.
The table below shows information according to geographic regions for the GFT Group:
| in € million | Revenue from sales to external clients* | Non-current intangible and tangible assets |
|||
|---|---|---|---|---|---|
| 01/01/– 30/09/2013 |
01/01/– 30/09/2012 |
30/09/2013 | 30/09/2012 | ||
| Germany | 61.21 | 68.10 | 35.42 | 32.93 | |
| UK | 42.27 | 27.45 | 0.06 | 0.05 | |
| Spain | 19.46 | 20.06 | 1.72 | 1.31 | |
| France | 29.83 | 31.32 | 0.08 | 0.10 | |
| USA | 7.14 | 8.35 | 4.95 | 5.24 | |
| Switzerland | 6.67 | 9.14 | 0.08 | 0.13 | |
| Italy | 14.20 | 3.82 | 32.93 | n/a | |
| Other countries | 4.66 | 6.37 | 0.34 | 0.30 | |
| Total | 185.44 | 174.61 | 40.06 |
* Determined by client location
Revenue from clients who account for more than 10% each of Group revenue is shown below:
| Revenue | Segments in which this revenue is generated |
||||
|---|---|---|---|---|---|
| in € million | 01/01/– 30/09/2013 |
01/01/– 30/09/2012 |
01/01/– 30/09/2013 |
01/01/– 30/09/2012 |
|
| Client 1 | 70.91 | 54.05 | GFT Solutions, emagine |
GFT Solutions, emagine |
6. Changes to contingent liabilities ······························································································································· ·····························································································
As of 30 September 2013, there were no significant changes to contingencies and other financial commitments compared to the Group Financial Statements as at 31 December 2012. As at 31 December 2012, there were no contingent receivables.
INFORMATION ON FINANCIAL INSTRUMENTS ACCORDING TO Categories
(not certified)
| € thsd. | 30/09/2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Valued at amortised cost |
Valued at fair value | Carrying amount in the balance sheet |
|||||||
| Carrying amount |
Fair value |
Carrying amount |
Fair value | ||||||
| Level 1 1 | Level 2 2 | Level 3 3 | |||||||
| Financial assets | |||||||||
| Receivables from goods and services rendered |
Loans and receivables | 60,297 | 60,297 | 60,297 | |||||
| Amounts due from customers for construction work |
Loans and receivables | 8,226 | 8,226 | 8,226 | |||||
| Securities held as non-current assets | 118 | 118 | 118 | ||||||
| Fixed-interest securities | Available-for-sale financial assets |
0 | 0 | 0 | |||||
| Variable-interest securities | Financial assets measured at fair value through profit or loss and classified as such upon initial recognition |
118 | 118 | 118 | |||||
| Securities held as current assets | 1,274 | 1,274 | 1,274 | ||||||
| Variable-interest securities | Available-for-sale financial assets |
1,274 | 1,274 | 1,274 | |||||
| Variable-interest securities | Financial assets measured at fair value through profit or loss and classified as such upon initial recognition |
0 | 0 | ||||||
| Cash and cash equivalents | Loans and receivables | 19,059 | 19,059 | 19,059 | |||||
| Other long-term assets | Loans and receivables | 960 | 960 | 960 | |||||
| Other short-term assets | Loans and receivables | 748 | 748 | 748 | |||||
| Total financial assets | 89,290 | 89,290 | 1,392 | 1,392 | 90,682 | ||||
| Loans and receivables | 89,290 | 89,290 | 89,290 | ||||||
| Available-for-sale financial assets | 1,274 | 1,274 | 1,274 | ||||||
| Financial assets measured at fair value through profit or loss |
118 | 118 | 118 |
1 Fair values were measured on the basis of quoted prices (unadjusted) in active markets for identical assets or liabilities.
2 Fair values were measured on the basis of inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
3 Fair values were measured on the basis of inputs for the asset or liability that are not based on observable market data (unobservable inputs).
31/12/2012 Valued at amortised cost Valued at fair value Carrying amount in the balance sheet Carrying amount Fair value Carrying amount Fair value Level 11 Level 22 Level 33 40,351 40,351 40,351 3,855 3,855 3,855 3,189 3,189 3,189 3,071 3,071 3,071 118 118 118 1,316 1,316 1,316 861 861 861 455 455 455 35,912 35,912 35,912 411 411 411 416 416 416 80,945 80,945 4,505 4,505 85,450 80,945 80,945 80,945 3,932 3,932 3,932 573 573 573
➜ ❘Notes 33
| € thsd. | 30/09/2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Valued at amortised cost |
Valued at fair value | Carrying amount in the balance sheet |
|||||||
| Carrying amount |
Fair value |
Carrying amount |
Fair value | ||||||
| Level 1 1 | Level 2 2 | Level 3 3 | |||||||
| Financial liabilities | |||||||||
| Financial liabilities | Financial liabilities valued at amortised cost |
7,349 | 7,349 | 7,349 | |||||
| Trade liabilities | Valued at amortised cost | 18,323 | 18,323 | 18,323 | |||||
| Other liabilities | Valued at amortised cost | 1,662 | 1,662 | 1,662 | |||||
| Financial liabilities from subsequent purchase price payments |
Valued at amortised cost | 12,214 | 12,214 | 12,214 | |||||
| Total financial liabilities | 39,548 | 39,548 | 39,548 | ||||||
| Financial liabilities valued at amortised cost |
39,548 | 39,548 | 39,548 |
1 Fair values were measured on the basis of quoted prices (unadjusted) in active markets for identical assets or liabilities.
2 Fair values were measured on the basis of inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
3 Fair values were measured on the basis of inputs for the asset or liability that are not based on observable market data (unobservable inputs).
| ➜ | ❘ | Notes | 35 | |
|---|---|---|---|---|
| 31/12/2012 | |||||||
|---|---|---|---|---|---|---|---|
| Carrying amount in the balance sheet |
Valued at fair value | Valued at amortised cost |
|||||
| Fair value | Carrying amount |
Fair value |
Carrying amount |
||||
| Level 3 3 | Level 2 2 | Level 1 1 | |||||
| 0 | 0 | 0 | |||||
| 19,835 | 19,835 | 19,835 | |||||
| 685 | 685 | 685 | |||||
| 3,671 | 3,671 | 3,671 | |||||
| 24,191 | 24,191 | 24,191 | |||||
| 24,191 | 24,191 | 24,191 |
7. Reporting on financial instruments ······························································································································· ······················································································
Information on financial instruments according to categories
Page 32–35 shows the carrying amounts and the fair value of the individual financial assets and liabilities for each individual class of financial instruments, and transfers them to the corresponding balance sheet items.
The fair value of a financial instrument is the price at which a party would take on the rights and/or obligations from this financial instrument from an independent, contractually-willing other party.
In the case of financial instruments to be accounted for at fair value, the fair value is determined on the basis of market prices. If no market prices are available, a valuation is carried out using typical valuation methods based on instrument-specific market parameters.
The fair value of loans and receivables and of original liabilities is fundamentally determined as the present value of future cash inflows or outflows, discounted at a current interest rate on the balance sheet date taking into account the respective due date of the asset items or the residual term of the liability. Owing to the mainly short maturity term of trade payables and receivables, other receivables and liabilities and cash and cash equivalents, the carrying amounts on the balance sheet date do not vary significantly from the fair value.
9. Investments/disinvestments ······························································································································· ·········································································································
During the period 1 January to 30 September 2013, the GFT Group invested €125 thousand in intangible assets (1 January – 30 September 2012: €175 thousand) and €4,139 thousand in tangible assets (1 January – 30 September 2012: €1,228 thousand). There were no significant disinvestments in the reporting period. Additions to non-current tangible assets mainly refer to the purchase of an administration building totalling €2,177 thousand.
Investments were also made in connection with company acquisitions, see Note 3.
Financial instruments stated in the balance sheet at fair value can be classified according to the following hierarchy which reflects to which extent the fair value is observable:
Level 1: measurement at fair value on the basis of quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: measurement at fair value using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: measurement at fair value based on inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Quantitative disclosures for financial instruments stated in the balance sheet at fair value are included in the table on page 32–35.
As in the previous period, no reclassifications between the three levels were made during the current financial year.
9. Related party disclosures ······························································································································· ··················································································································
Compared to the disclosures made in the Notes to the Group Financial Statements as at 31 December 2012, there were no significant changes in related party disclosures. There were also no changes in the composition of related parties nor in relations with such parties.
10. Events after 30 September 2013 ······························································································································· ···························································································
There were no significant events after the interim reporting period which were not considered in the Interim Group Financial Statements.
Stuttgart, 6 November 2013
GFT Technologies Aktiengesellschaft
The Executive Board
(Chairman)
Executive Board Executive Board Executive Board Executive Board
Ulrich Dietz Jean-François Bodin Marika Lulay Dr. Jochen Ruetz
Financial Calendar
Deutsches Eigenkapitalforum, Frankfurt/Main 11–13 November 2013
LBBW German Company Day, London 14 November 2013
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 Aktiengesellschaft
Investor Relations Andrea Wlcek
Filderhauptstrasse 142 70599 Stuttgart Germany T +49 711 62042-440
F +49 711 62042-301
This Quarterly Report is also available in German. The online versions of the German and English Interim Reports are available on www.gft.com/ir.
IMPRINT
Concept: GFT Technologies Aktiengesellschaft, Stuttgart, www.gft.com
Text: GFT Technologies Aktiengesellschaft, Stuttgart, www.gft.com
Creative concept and design: Impacct Communication GmbH, Hamburg, www.impacct.de
© Coypright 2013: GFT Technologies Aktiengesellschaft, Stuttgart