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GFT Technologies SE
Dr Jochen Ruetz (CFO), Andrea Wlcek (Head of Investor Relations)
May 2018
Investor Presentation
2GFT GROUP
TRACKER
Ag
en
da
1. GFT at a glance
2. GFT business model
3. Financial results Q1/2018
4. Outlook
May 2018
3GFT GROUP
TRACKER
Technology partner for digital transformation
Business and technology
consultancy
Development of bespoke
IT solutions from banking
applications to trading
systems
Implementation and support
of complete platforms
Modernisation of core banking
systems
Implementation of regulatory
requirements
IT Services
Focus on financial institutions
Capital Markets
Retail Banking
Private Wealth
Insurance
Expansion of digital service
offering for industrial clients
Business Focus
Data Analytics
Blockchain
Cloud Engineering
Artificial Intelligence
Internet of Things (IoT)
Advanced technologies stand for
25% of group revenue in 2018,
up 50% vs. 2017
Technology Focus
1 GFT at a glance
May 2018
4GFT GROUP
TRACKER
Proven onshore-/ nearshore delivery model (4,735 FTE)
Canada (56)
Toronto
USA (43)
Boston
New York
Costa Rica (110)
Heredia
Mexico (186)
Mexico City
Alphaville
Curitiba
Sorocaba
Germany (356)
Bonn
Eschborn/Frankfurt
St. Georgen
Stuttgart
Italy (567)
Florence
Genoa
Milano
Montecatini Terme
Padova
Piacenza
Siena
Torino
Spain (2,064)
Alicante
Barcelona
Lleida
Madrid
Valencia
Zaragoza
Poland (530)
Lodz
Poznan
Warsaw
Switzerland (49)
Basel
Zurich
UK (146)
London
Americas
& UK
Continental
Europe
Brazil (678)
(as of 31/03/2018)
Approx. 50% of revenues generated onshore and 50% nearshore
Nearshore
Delivery Units
1 GFT at a glance
May 2018
5GFT GROUP
TRACKER
Key figures
279
374423 419 400-420
0
100
200
300
400
500
2014 2015 2016 2017 2018e
Revenue (€m)
33
45 47
3439
0
10
20
30
40
50
2014 2015 2016 2017 2018e
EBITDA (€m)
24
33 33
18
25
0
5
10
15
20
25
30
35
2014 2015 2016 2017 2018e
EBT (€m)
3,131
4,050
4,870 4,740 4,800
0
1000
2000
3000
4000
5000
6000
2014 2015 2016 2017 2018e
Employees (FTE)
1 GFT at a glance
May 2018
6GFT GROUP
TRACKER
30 biggest clients Q1/2018 – five new entries
1 GFT at a glance
May 2018
Private
Wealth
Retail
Banking
Capital
Markets
7GFT GROUP
TRACKER
GFT Managing Directors and Chairman of theAdministrative Board
Marika Lulay
1 GFT at a glance
May 2018
Chief Executive Officer (CEO) & Managing Director
Dr Jochen Ruetz
Chief Financial Officer (CFO) & Managing Director
Ulrich Dietz
Chairman of the Administrative Board
2002 - 2015 Board
member as Chief
Operating Officer (COO)
2015 - 2017 Managing
Director (COO)
Since 2017 Managing
Director (CEO)
Responsible for:
- strategy & markets
- corporate development
& operations
- corporate marketing
- communications
2003 - 2015 Board
member as Chief
Financial Officer (CFO)
Since 2015 Managing
Director (CFO)
Responsible for:
- finance
- human resources
- legal
- audit
- investor relations
- mergers & acquisitions
- IT-infrastructure
Founder and former
CEO
Since 2017 Chairman of
the Administrative Board
Main Shareholder of the
GFT Technologies SE
8GFT GROUP
TRACKER
GFT share and shareholder structure
15
25 25
30 30 30
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016 2017
Shareholder structure
GFT share indexed and in EUR
26,4%
9,7%63,9%
Ulrich Dietz
Maria Dietz
Free float
1 GFT at a glance
May 2018
proposed
Cent
01/01/2015€ 12.42
30/04/2018€ 13.20
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
50
100
150
200
250
300
350
400
GFT indexed TecDAX indexed GFT in EUR €
Dividend per share in Cent (for financial year)
9GFT GROUP
TRACKER
Ag
en
da
1. GFT at a glance
2. GFT business model
3. Financial results Q1/2018
4. Outlook
May 2018
10GFT GROUP
TRACKER
Business areas of GFT insidethe banks
Sun deck
Innovation
Approx 10 % of ITS budget
Engine room
Core Banking, middle & back
office projects
Approx. 50 % of IST budget
Tween deck
Risk & Compliance projects
front office
Approx. 40 % of IST budget
Das Raster muss
Johannes noch
finetunen, kann man
transparenter
gestalten.Sun deck
Engine room
Tween deck
2 GFT business model
Business areas of GFTinside the banks
50% 40%of ITS budget
Augmented Banking
Open Banking
Cognitive Banking
Automation Banking
40% 50%of ITS budget
10% of ITS budget
Regulation
May 2018
11GFT GROUP
TRACKER
Augmented Banking Open Banking
Automation Banking Cognitive Banking
Conversational
Banking
Intelligent
Algorithms
Cognitive ProductIntelligent Process
Automation
Robotic Process
Automation
Digital Solutions
Augmented
Solutions
Modulare Banking
Open APIs
Bank as a
Platform
Channels /
Architecture
Virtual Reality
Computing Vision
IoT
Web / Mobile
Core application
renewal
Business
Process
Management
Blockchain
Cloud
Microservices
Artificial Intelligence
Machine Learning
NLP
ChatBot
Key offering
2 GFT business model
Regulation
May 2018
AugmentedBanking
OpenBanking
AutomationBanking
CognitiveBanking
12GFT GROUP
TRACKER
Augmented Banking Open Banking
Automation Banking Cognitive Banking
Key references
2 GFT business model
May 2018
Regulation
AugmentedBanking
OpenBanking
AutomationBanking
CognitiveBanking
13GFT GROUP
TRACKER
Implementation of a banking platform
Implementation of a global Risk and P&L production platform (dbPalace) for Deutsche Bank
New strategic platform replaces 2,000 end-user applications
Headed up by a 200-strong dbPalace team comprising both GFT and Deutsche Bank specialists, spread across eight locations worldwide
2 GFT business model
Automation Banking Advantages:
Reduced risk, man-hours and errors
Speed up release times
Fast reaction to market trends and challenges
Improved decision-making, control and compliance
Chris Bezuidenhout, CIO for Markets Finance at Deutsche Bank:
“dbPalace is an example of a programme where the needs and requirements of Finance are understood and acted upon by a passionate and committed IT team, with the users at the heart of every decision. It has been excellent working with GFT on this project. They understand my business requirements and were very focused on helping to deliver solutions we can really use.”
GFT and Deutsche Bank awarded first place for ‘Best Fintech Partnership’
May 2018
14GFT GROUP
TRACKER
Implementation of a bank as a platform model
Design and implementation of API development
framework used across 11 banks in 35 countries
GFT analysed the bank’s current web and mobile
traffic patterns as well as customer interactions to
plan the user experience journey.
The team designed the front-end architecture of the
bank platform that would function across cultures and
continents in multiple languages, whilst securely
collecting the APIs.
GFT focused heavily on the architecture aspects,
the governance model and the selection of the
appropriate tools and software solutions.
Open Banking
2 GFT business model
May 2018
15GFT GROUP
TRACKER
The world’s first 100% digital process for account opening
Seja Original application is used by people who are interested in opening a new current account.
Users are able to send personal data, images and documents directly to the bank, with the convenience and flexibility of doing all of this online, using a mobile device.
Augmented Banking
GFT won the Overall and the
Customer Engagement awards
GFT also ranked #41 on the Top 100 of
2017 IDC FinTech Rankings
GFT wins Real Results award byIDC Financial Insights
2 GFT business model
May 2018
16GFT GROUP
TRACKER
Insurance fraud prevention
Big data solutions extending the company’s current antifraud system
Access to information in unstructured documents such as textual notes, press releases and medical reports
Enrichment & exchange of information with institutional databases & use of «Open Data»
Looking at the Web and social media as new sources of information to be exploited
Development of tool to support «Detection» and «Investigation» and creation of an «open to services» platform capable to expose its research and analysis functionalities to all enterprise applications
Solution is able to handle structured and unstructured data coming from enterprise systems and external institutional databases
Cognitive Banking
2 GFT business model
May 2018
17GFT GROUP
TRACKER
GLOBAL DELIVERY MODEL Platform Based Business
4,000 (FTE)
200 (FTE)APPLIED TECHNOLOGY UNIT
Business Consulting / Sales
FINANCIAL SERVICES UNIT INDUSTRIAL SOLUTIONS UNIT
BaaP Supply Chain / Embedded FinanceReg. Automation Cognitive Insurance
Partner & Ecosystem / Sales
BANKING
INNOVATION LAB
Platform Integration
Managed Service
Internet of Things
Blockchain Artificial Intelligence
Cloud Data Analytics
Key technologies
2 GFT business model
May 2018
18GFT GROUP
TRACKER
Ag
en
da
1. GFT at a glance
2. GFT business model
3. Financial results Q1/2018
4. Outlook
May 2018
19GFT GROUP
TRACKER
Key figures
Revenue
-4%
EBITDA
1%
EBT
-2%
Employees
-2%
May 2018
3 Financial results Q1/2018
EBITDA growth of 1% to € 10.05m
Q1/2017 EBITDA included extraordinary items of € -1.25m
EBITDA without extraordinary item decrease of 10% to € 10.05m (Q1/2017: € 11.17m)
EBT decrease of 2% to € 6.52m
EBT-margin with 6.1% on the same level as previous year (Q1/2017: 6.0%)
Employee reduction to 4,735 (Q1/2017: 4,833)
Compared to 31/12/2017 FTE on the same level (31/12/2017: 4,740)
Revenue decrease of -4% to € 106.99m
Growth at constant currencies 0%
Americas & UK down -13% and Continental Europe up 5% vs Q1/2017
20GFT GROUP
TRACKER
Results at a glance
May 2018
3 Financial results Q1/2018
In €m Q1/2018 Q1/2017 ∆%
Revenue 106.99 111.10 -4%
EBITDA 10.05 9.92 1%
EBITDA w/o extraordinary items* 10.05 11.17 -10%
EBIT 6.87 6.95 -1%
EBT 6.52 6.63 -2%
Net income 4.97 4.99 0%
Basic earnings per share (in €) 0.19 0.19 0%
Permanent employees (in FTE) 4,735 4,833 -2%
* Extraordinary items Q1/2017: earn-out accrual for Habber Tec Brazil acquisition (€ -0.25m) and restructure (€ -1.00m)
21GFT GROUP
TRACKER
Results at a glance per quarter
May 2018
3 Financial results Q1/2018
In €mQ1
2017
Q2
2017
Q3
2017
Q4
2017
FY
2017
Q1
2018
Revenue 111.10 106.67 98.75 102.29 418.81 106.99
EBITDA 9.92 8.42 10.76 5.21 34.31 10.05
EBIT 6.95 3.32 7.58 1.94 19.79 6.87
EBT 6.63 2.89 7.16 1.45 18.13 6.52
Net income 4.99 3.12 6.08 3.62 17.81 4.97
Basic earnings per share (in €) 0.19 0.12 0.23 0.14 0.68 0.19
Permanent employees (in FTE) 4,833 4,739 4,666 4,740 4,740 4,735
22GFT GROUP
TRACKER
May 2018
Revenue and EBT per quarter (in €m)
3 Financial results Q1/2018
97.39
110.64
106.25
108.28
111.10
106.67
98.75
102.29
106.99
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
Revenue
7.04
7.56
9.119.34
6.63
2.89
7.16
1.45
6.52
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18
EBT
Revenue decreased by 4% in Q1/2018
to € 106.99m (Q1/2017: € 111.10m),
due to less billable days (-3%) and lower
revenue with Top-2 investment banking
customers
EBT of € 6.52m in Q1/2018 decreased
by -2% (Q1/2017: € 6.63m)
23GFT GROUP
TRACKER
May 2018
Revenue per segment
3 Financial results Q1/2018
in €m
Revenue ∆%
Q1/2018 Q1/2017 Organic M&A FX Total
Americas & UK 47.90 54.86 -5.9% 0.0% -6.8% -12.7%
Continental Europe 58.98 56.08 5.6% 0.0% -0.4% 5.2%
Others 0.11 0.16 n/a n/a n/a n/a
GFT Group 106.99 111.10 -0.3% 0.0% -3.4% -3.7%
24GFT GROUP
TRACKER
May 2018
Revenues per segment for Top-2 clients
3 Financial results Q1/2018
in €mRevenue ∆%
Q1/2018 Q1/2017 Total
Americas & UKTop-2 Clients 26.14 33.51 -22.0%
Other Clients 21.76 21.35 1.9%
Continental EuropeTop-2 Clients 21.05 18.92 11.3%
Other Clients 37.93 37.16 2.1%
GFT Group*
Top-2 Clients 47.19 52.43 -10.0%
Other Clients 59.69 58.51 2.0%
Total 106.88 110.94 -3.7%
* Excluding segment „Others“
25GFT GROUP
TRACKER
May 2018
EBITDA & EBT per segment
3 Financial results Q1/2018
in €m
EBITDA EBT
Q1/2018 Q1/2017 ∆% Q1/2018 Q1/2017 ∆%
Americas & UK 3.37 -0.75 n/a 1.89 -2.29 n/a
Continental Europe 6.73 10.03 -32.9% 4.91 8.45 -41.9%
Others -0.05 0.64 n/a -0.28 0.47 n/a
GFT Group 10.05 9.92 1.4% 6.52 6.63 -1.6%
€ 0.50m Operating profit
€ -1.00m expenses for adapting of sales organisation
€ -0.25m Earn-out accruals Habber Tec Brazil
26GFT GROUP
TRACKER
May 2018
Revenue by countries
3 Financial results Q1/2018
€ 4.17m
€ 4.56m
€ 6.11m
€ 13.58m
€ 13.99m
€ 32.52m
€ 22.97m
€ 13.20m
UK
Spain
Germany
Italy
USA
Brazil
Switzerland
-14%
4%
21%
5%
-19%
-11%
-41%
∆%
Other countries 29%
€ 28.13m
€ 23.83m
€ 15.97m
€ 14.30m
€ 11.28m
€ 5.43m
€ 2.69m
€ 5.36m
Q1/2018 Q1/2017
29%
21%12%
12%
13%
5%
4%4%
Q1/2017: € 111.10m
26%
22%
15%
13%
11%
5%3% 5%
Q1/2018: € 106.99m
27GFT GROUP
TRACKER
Detailed profit & loss statement
May 2018
3 Financial results Q1/2018
in €m Q1/2018 Q1/2017 ∆%
Revenues 106.99 111.10 -4%
Other operating income 0.66 0.68 -3%
Cost of purchased services -14.38 -13.79 +4%
Personnel expenses -68.06 -72.40 -6%
Other operating expenses* -15.16 -15.67 -3%
EBITDA 10.05 9.92 +1%
Depreciation and amortisation -3.18 -2.97 +7%
EBIT 6.87 6.95 -1%
Interest and similar income/expenses -0.35 -0.32 +9%
EBT 6.52 6.63 -2%
Income taxes -1.55 -1.64 -5%
Net income 4.97 4.99 0%
Basic earnings per share (in €) 0.19 0.19 0%
* Other operating expenses including profit share from associates and depreciation in securities
28GFT GROUP
TRACKER
Operating profit and M&A effects
May 2018
3 Financial results Q1/2018
in m€ Q1/2018Guidance
20182017 2016
Operating profit 10.05 39.00 37.12 46.78
Bonus release 0 0 1.40 0
Restructure 0 0 -2.80 0
Deconsolidation CODE_n 0 0 -0.41 0
Earn-out accruals 0 0 -1.00 0
PPA orderbook 0 0 0 -0.07
EBITDA 10.05 39.00 34.31 46.71
Depreciation -1.78 -7.20 -7.10 -6.25
PPA amortisation -1.40 -5.00 -5.42 -5.67
PPA impairment 0 0 -2.00 0
EBIT 6.87 26.80 19.79 34.79
Interest -0.35 -1.80 -1.66 -1.74
EBT 6.52 25.00 18.13 33.05
29GFT GROUP
TRACKER
Balance Sheet (in €m)
May 2018
3 Financial results Q1/2018
123.74 135.43
78.1572.24
163.41 165.14
365.30 372.81
125.92 137.89
119.43119.60
119.95115.32
365.30 372.81
31/03/2018 31/12/2017 31/03/2018 31/12/2017
Assets Liabilities
Cash
& cash equivalents
Other
Current
Assets
Non-Current
Assets
Non-Current
Liabilities
Equity
Current
Liabilities
30GFT GROUP
TRACKER
Cash Flow analysis (in €m)
3 Financial results Q1/2018
May 2018
-111.54
72.25
9.96
-3.15 -0.72 -0.19
78.15
-30.24-39.29
-108.39
31/12/2017 31/03/2018Q1/2018
Cash FX
effects
Operating
Cash Flow
Financing
Activities
Investments Cash Financial
liabilities
Net cashNet cash Financial
Liabilities GFT’s biggest clients overpay in
December in order to utilise internal
budgets. Overpaid amount indicated
by light blue colour
31/12/2016 = € 4.55m
31/12/2017 = € 4.47m
Positive development of operating cash
flow in Q1/2018 mainly attributed to
settlement payment of € 11.00m
mutually agreed with Avaloq in legal
dispute and overall healthy working
capital position
Cash flow from financing activities in
essence characterised by loan
repayments (€ 5.07m)
31GFT GROUP
TRACKER
Employees by country (FTE)
May 2018
3 Financial results Q1/2018
1,813 1,859 1,977 2,023 2,032 2,032 2,048 2,104 2,064
479676
757 797 727 688 675 686 678536
551550
554 568 571 561 561 567503
532
590594 576 532 500 503 530
285
289
287310 323 325 343 355 356
104
116
116116 143 147 137
161 186
243
237
237235 227 201 182
158 146
196
233
235241 246
243 220 212 208
4,159
4,493
4,7494,870 4,833
4,739 4,666 4,740 4,735
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018
Others
UK
Mexico
Germany
Poland
Italy
Brazil
Spain
32GFT GROUP
TRACKER
Ag
en
da
1. GFT at a glance
2. GFT business model
3. Financial results 2017
4. Outlook
May 2018
33GFT GROUP
TRACKER
Banking and Securities IT Spending
Source: Gartner, Forecast Enterprise IT Spending for Banking and Securities Market, Worldwide, 4Q17 Update, Jan 2018 (Billions of U.S. Dollars)
95.1 96.2 97.0 99.0 101.3 103.8
199.3 208.0 217.8 228.4 240.0 252.2
77.482.4
88.395.4
103.4112.2
32.333.9
35.636.3
36.636.7
107.0107.3
107.9108.4
109.3109.7
31.332.9
32.832.8
32.832.7
2016 2017 2018 2019 2020 2021
Data Center Systems
Telecom Services
Devices
Software
IT Services
Internal Services
CAGR
2016-2021
0.9%
0.5%
2.6%
7.7%
4.8%
1.8%
3.6% Total
May 2018
4 Outlook
542.4 560.7579.5
600.3623.4
647.3
34GFT GROUP
TRACKER
New technologies and methodologies enable new client acquisition and ensure growth
LEADING EDGE
Blockchain
Cloud
Data Analytics
Artificial Intelligence
DevOps
Internet-of-Things
ESTABLISHED
INDUSTRY DRIVEN
REVENUE GROWTH 2017/18MARKET CAGR
430%
31%
230%
50%*
62%**
21%*
12%*
18%***
22%**
Sources: *IDC 2017; **Markets and Markets 2017; *** KBV Research 2017
(2016-2021)
(2016-2021)
(2016-2021)
(2017-2023)
(2016-2020)
(2017-2022)
May 2018
4 Outlook
35GFT GROUP
TRACKER
Guidance 2018 (in €m)
May 2018
4 Outlook
423 419400 -420
2016 2017 2018
-1% 0%
Revenue EBITDA EBT
46.7
34.3
39.0
2016 2017 2018
-27% 33.1
18.1
25.0
2016 2017 2018
-45%
Revenue
2022
EB
ITD
A m
arg
in 1
2%
800
+14% +38%
Revenue of EUR 400 to 420 million for 2018 with significantly higher margins than in 2017
Significant earnings growth for EBITDA to at least EUR 39 million and for EBT to at least EUR 25 million
Volatile revenue expectations for major investment banking client will continue
New solution offering ‘Exponential Banking’ and renewal of core banking systems will drive growth in Continental Europe
Strict focus on new technologies and IoT solution offering will support long-term growth
36GFT GROUP
TRACKER
May 2018
Revenue bandwidth for Top-2 clients in 2018*
* Table ignores Business Segment „Others“ (ca. € 1m Revenue)
Revenue ∆%
2018 2017 2018 / 2017
Americas & UK Top-2 Clients 70-90 114 -39% / -21%
Other Clients 100 81 +23%
Continental Europe Top-2 Clients 70 77 -9%
Other Clients 160 146 +10%
GFT Group Top-2 Clients 140-160 191 -27% / -16%
Other Clients 260 227 +15%
Total 400-420 419 -5% / 0%
in €m
4 Outlook
37GFT GROUP
TRACKER
May 2018
2018: split into operating profit and M&A effects
In T€ 2017 2018
Operating Profit 37.12 39.00
Bonus Release 1.40 0
Restructure UK -2.80 0
Deconsolidation CODE_n -0.41 0
Earn-out Accruals -1.00 0
EBITDA 34.31 39.00
Depreciation -7.10 -7.20
PPA armortization -5.42 -5.00
PPA impairment -2.00 0
EBIT 19.79 26.80
Interest -1.66 -1.80
EBT 18.13 25.00
4 Outlook
38GFT GROUP
TRACKER
May 2018
The way forward
Unprecedented growth opportunities across the Americas and the UK segment
New technologies as a door opener for new clients
Established nearshore delivery model enables a faster scale-up
Attractive growth opportunities with industrial clients
Continued focus on M&A (North America for banking, Germany for the industrial sector)
4 Outlook
39GFT GROUP
TRACKER
Shaping the future
of digital business
GFT Technologies SE
Dr Jochen RuetzCFO
Schelmenwasenstrasse 3470567 Stuttgart
T +49 711 62042-0
GFT Technologies SE
Andrea WlcekHead of Investor Relations
Schelmenwasenstrasse 3470567 Stuttgart
T +49 711 62042-440F +49 711 62042-301
May 2018
