Gft Technologies Se · XETR:GFT

Gft Technologies — Investor Presentation (November 2019)

42 slides from Gft Technologies's investor presentation, November 2019

1. Slide 1: Investor Presentation

   Investor Presentation GFT Technologies SE November 2019 © 2019 | GFT Technologies SE and its affiliates. All rights reserved.

2. Slide 2: Agenda

   Shaping the future of digital business 1. GFT at a glance 2. GFT business model Agenda 3. Financial results 9M/2019 4. Outlook gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 2

3. Slide 3: Shaping the future of digital business

   Shaping the future of digital business GLOBAL WORKFORCE REVENUE FY 2019e Adj. EBITDA FY 2019e* 5,173 € 420 € 35 Shaping FTE million million the future REVENUE BY COUNTRY 9M/2019 REVENUE BY SECTOR 9M/2019 of digital Spain 22% United Kingdom 19% Banking 80% Italy 15% business Germa ny 12% USA 8% Insur

4. Slide 4: Proven onshore-/nearshore delivery model (5,173 FTE)

   Shaping the future of digital business Proven onshore-/ nearshore delivery model (5,173 FTE) Approx. 50% of revenues generated onshore and 50% nearshore Canada (195) Germany (366) Americas Toronto Bonn Continental Eschborn/Frankfurt & UK USA (32) St. Georgen Europe Stuttgart Boston New York Belgium

5. Slide 5: Key figures

   Shaping the future of digital business Key figures Revenue (€m) EBITDA adjusted (€m) 500 423 419 413 420 48 400 374 50 45 45 40 13 40 35 300 30 200 20 35 100 10 0 0 2015 2016 2017 2018 2019e 2015 2016 2017 2018 2019e Revenue top-2 clients (DB, Barclays) Effects from IFRS 16 Employees (FTE) EBT (€m)

6. Slide 6: 30 biggest clients 9M/2019

   Shaping the future of digital business 30 biggest clients 9M/2019 not disclosed Capital Markets Retail Banking Revenue by sector Insurance Industry & Others gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 6

7. Slide 7: GFT share and shareholder structure

   Shaping the future of digital business GFT share and shareholder structure GFT share indexed Shareholder structure in % 29/12/2017 11/01/2019 €13.05 €9.20 Ulrich Dietz 26.4% Ma ria Dietz 140% Fre e float 120% 64.0% 9.6% 100% 80% 60% 40% Dividend per share in Cent (for financial year) 20% 0% Cent 30

8. Slide 8: Agenda

   Shaping the future of digital business 1. GFT at a glance 2. GFT business model Agenda 3. Financial results 9M/2019 4. Outlook gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 8

9. Slide 9: Business areas of GFT inside the banks

   Shaping the future of digital business Business areas of GFT Sun deck Das Raster muss Johannes noch inside the banks Innovation § Approx 10finetunen, kann man % of ITS budget Software Engineering transparenter Sun deck gestalten. New Tech 5% Tween deck Risk & Compliance projects front office New Tec

10. Slide 10: IT technology meets client business challenges

    Shaping the future of digital business IT technology meets client business challenges Regulation Fraud Multi- New channel Customer Services markets centricity Digitalisation Data mgmt New Time competitors to Legacy Connec BANKING systems New market INDUSTRY channels -tivity Backend INSURANCE Brexit

11. Slide 11: GFT Partner for Innovation and Transformation

    Shaping the future of digital business GFT Partner for Innovation and Transformation CUSTOMER COLLABORATION AUTOMATION GAME CHANGERS CENTRICITY INNOVATION TRANSFORMATION PLATFORM DATA REGULATORY, CLOUD ENGINEERING ENGINEERING RISK & ENGINEERING COMPLIANCE SERVICES gft.com November 2019 MINOR VARIANC

12. Slide 12: Accelerating growth in exponential cloud technology with Google

    Shaping the future of digital business Accelerating growth in exponential cloud technology with Google & GFT a Premier Google Cloud partner § Preferred partner in financial services § Strategic investments to strengthen relationship with Google: § Continuous build up of talent and sales team 350 § D

13. Slide 13: Further strengthening of partnerships

    Shaping the future of digital business Further strengthening of partnerships Cloud experts at GFT 2019 ~500 2018 200 2017 50 gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 13

14. Slide 14: Creating win-win with Guidewire expansion in Europe

    Shaping the future of digital business Creating win-win with Guidewire expansion in Europe Acquisition of Canadian V-NEO, leading Guidewire specialist § Guidewire as a top ranked IT-solution for digitalising of insurance sector & § Strategic investments to strengthen position as Guidewire specialist

15. Slide 15: Insurance with high growth dynamics

    Shaping the future of digital business Insurance with high growth dynamics Revenue development with insurance clients 2017 -2019 50 €m § Target 2019e: over 10% of revenue ~100% 25 ~100% 0 2017 2018 2019 gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 15

16. Slide 16: Re-engineering of anti-fraud processes in insurance

    Shaping the future of digital business Re-engineering of anti-fraud processes in insurance Data Analytics & AI § Fraud problem in Italian insurance business, esp. motor claims are exposed to a high risk § Old fraud detection is ineffective, system unable to respond in real time and learn from behavi

17. Slide 17: AI document processing

    Shaping the future of digital business AI document processing Artifical Intelligence § Banks are challenged to handle huge amounts of messages and unstructured scanned documents § Machine learning and deep learning algorithms automatically classify documents in pre-defined classes, supported by huma

18. Slide 18: Industry activities strengthened

    Shaping the future of digital business Industry activities strengthened Industry 4.0 § Acquisition of Axxom as of 1 July § Gain of experts in cross-segment IT and industrial IoT processes § Strengthening of partnership with Trumpf for development of machine software solutions § New location in Karls

19. Slide 19: Agenda

    Shaping the future of digital business 1. GFT at a glance 2. GFT business model Agenda 3. Financial results 9M/2019 4. Outlook gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 19

20. Slide 20: Highlights in the first nine months 2019

    Shaping the future of digital business Highlights in the first nine months 2019 § Client and sector diversification continued § Dynamic revenue growth of 23% without top-2 clients* (20% in H1/2019) § Group revenue up slightly by 2% to €316.0 million § Insurance business accounts for 11% and cloud bu

21. Slide 21: Key figures

    Shaping the Preliminary future of digital results FY 2018 business Key figures in €m § Revenue up slightly by 2% (organic -2%), 9M/2019 9M/2018 ∆% Revenue contribution of V-NEO (€14.6m) & Revenue 315.95 309.07 2% AXOOM (€0.59m) § Organic revenue growth in Q3/2019: 6% Revenue w/o V-NEO & AXOOM 300.76

22. Slide 22: Revenue and EBITDA adjusted by quarter

    Shaping the Preliminary future of digital results FY 2018 business Revenue and EBITDA adjusted by quarter (in m€) IFRS 16 effects § Q3/2019 EBITDA adjusted with positive IFRS 16 effect of €+3.21m * Adjusted for non-operational effects from M&A activities gft.com November 2019 MINOR VARIANCES DUE TO

23. Slide 23: Revenue by segment

    Shaping the Preliminary future of digital results FY 2018 business Revenue by segment in €m Revenue Growth rates 9M/2019 9M/2018 Organic M&A FX Total Americas & UK 147.30 137.10 -7% 9% 5% 7% Continental Europe 168.24 171.54 -2% 0% 0% -2% Others 0.41 0.43 -4% n/a n/a -4% GFT Group 315.95 309.07 -4% 4

24. Slide 24: Revenue by segment for top-2 clients

    Shaping the Preliminary future of digital results FY 2018 business Revenue by segment for top-2 clients in €m Revenue ∆% 9M 2019 9M 2018 9M 2019 / 9M 2018 Americas & UK Top-2 Clients 45.35 67.90 -33% Other Clients 101.94 69.21 47% Total 147.30 137.10 7% Continental Europe Top-2 Clients 49.09 60.28 -

25. Slide 25: EBITDA adjusted, EBITDA and EBT by segment

    Shaping the Preliminary future of digital results FY 2018 business EBITDA adjusted, EBITDA and EBT by segment in €m EBITDA adjusted* EBITDA EBT 9M/2019 9M/2018 ∆% 9M/2019 9M/2018 ∆% 9M/2019 9M/2018 ∆% Americas & UK 9.91 9.36 6% 7.67 8.60 -11% 2.13 3.90 -45% Continental Europe 26.58 18.96 40% 26.24 1

26. Slide 26: Revenue by country

    Shaping the future of digital business Revenue by country (in m€) 9M/2019 ∆% 9M/2018 67.95 Spain 0% 67.91 60.12 United Kingdom -23% 77.68 46.41 Italy 10% 42.10 38.61 Germany -17% 46.44 26.66 USA -8% 28.97 23.35 Brazil 43% 16.35 12.47 Mexico 92% 6.48 11.79 Canada >100% 3.11 7.36 France >100% 0.56 4.9

27. Slide 27: Detailed profit & loss statement

    Shaping the future of digital business Detailed profit & loss statement in €m 9M/2019 9M/2018 ∆% § Revenue trend in line with expectations Revenue 315.95 309.07 2% § Cost of purchased services to revenue ratio down to Other operating income 6.31 5.46 16% 11% (9M/2018: 13%) Cost of purchased services

28. Slide 28: Cash flow analysis

    Shaping the Preliminary future of digital results FY 2018 business Cash flow analysis (in m€) 31/12/2018 9M/2019 30/09/2019 § Financing structure remains solid. Credit facilities not yet drawn of €32.09m (31.12.2018: Net Cash Financial Cash Operating Financing Investments FX Cash Financial Net Cash

29. Slide 29: Balance sheet

    Shaping the future of digital business Balance sheet (in m€) § Growth in balance sheet total of § Equity at prior-year level due to €68.89m mainly due to change in currency effects. Negative lessee accounting acc. to IFRS 16 transitional effects of €2.34m from first-time application of IFRS 16. § Ri

30. Slide 30: Employees by country (FTE)

    Shaping the Preliminary future of digital results FY 2018 business Employees by country (FTE) § Increase in Group headcount compared to 30/09/2018 due to AXOOM acquisition (72 employees) and staff expansion esp. in Mexico and Brazil § Slight decline in headcount in Spain and Poland § 116 employees i

31. Slide 31: Agenda

    Shaping the future of digital business 1. GFT at a glance 2. GFT business model Agenda 3. Financial results 9M/2019 4. Outlook gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 31

32. Slide 32: Banking and Securities IT Spending Forecast

    Shaping the Backup future of digital business Banking and Securities IT Spending Forecast 702.7 CAGR 651.4 678.0 32.8 2019-2023 626.0 32.8 608.8 32.8 109.3 Data Center Systems 1.0% 32.9 108.4 31.3 107.9 36.6 107.0 107.3 36.3 Telecom Services 0.6% 35.6 33.9 103.4 32.3 95.4 Devices 0.0% 88.3 82.4 77.4

33. Slide 33: Growing revenue share with exponential technologies

    Shaping the future of digital business Growing revenue share with exponential technologies Artificial Intelligence ~30% 25% Cloud 20% DLT/Blockchain 10% Data Analytics DevOps 2016 2017 2018 2019 gft.com November 2019 MINOR VARIANCES DUE TO ROUNDING POSSIBLE 33

34. Slide 34: Development of exponential technologies at GFT

    Shaping the future of digital business Development of exponential technologies at GFT Stage I Stage II Stage III Artificial Data Blockchain Cloud DevOps Intelligence Analytics Revenue €1 m €2 m €10 m €48 m €37 m FY 2018 Growth FY 2019e DEGREE OF MATURITY gft.com November 2019 MINOR VARIANCES DUE TO

35. Slide 35: Outlook FY 2019

    Shaping the future of digital business Outlook FY 2019 (in m€) Revenue EBITDA adjusted* EBITDA EBT +2% -12%/ +21% -12% / +23% -20% 423 419 413 420 48 46 13 13 47 40 38 35 35 33 33 23 32 17 16 18 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 IFRS 16 effects Guidance

36. Slide 36: Backup

    Backup

37. Slide 37: Outlook: Revenue for top-2 clients in FY 2019

    Shaping the Outlook future of digital business Outlook: Revenue for top-2 clients in FY 2019* in €m Revenue ∆% ∆% 2019e 2018 2017 2019/2018 2019/2017 Americas & UK Top-2 clients 56.00 84.79 114.34 -34% -51% Other clients 135.00 98.66 81.05 37% 67% Continental Europe Top-2 clients 58.00 79.56 76.34 -

38. Slide 38: Split of operative and M&A Effects

    Shaping the future of digital business Split of operative and M&A Effects in €m 9M/2019 9M/2018 GFT stand alone V-NEO Axoom GFT Total GFT stand alone DPR V-NEO GFT Total EBITDA adjusted 30.91 3.46 0.41 34.78 28.22 0.00 0.56 28.79 M&A earn-out & retention 0.00 -2.11 0.00 -2.11 0.00 0.00 -0.15 -0.15 M

39. Slide 39: Effects after initial application of IFRS 16

    Shaping the future of digital business Effects after initial application of IFRS 16 in €m 9M/2019 2019 expected after IFRS 16 Adjustment befor IFRS 16 after IFRS 16 Adjustment befor IFRS 16 EBITDA adjusted 34.78 9.37 25.42 approx. 48 approx. 13 approx. 35 EBITDA 32.20 9.37 22.84 approx. 46 approx. 1

40. Slide 40: Revenue and EBITDA development

    Shaping the future of digital business Revenue and EBITDA development Revenue in €m EBITDA adjusted in €m GFT GFT Italy (2013) 47 GFT Rule (2014) Adesis (2015) 45 Habber Tec BR (2016) V-NEO (2018) 48 40 CAGR 2009-2019 (total): +15% 423 419 413 420 CAGR 2009-2019: +17% 35 13 374 33 (without IFRS 16 e

41. Slide 41: Peer group (limited comparability)

    Shaping the future of digital business Peer group (limited comparability – not focused on financial sector) Company LC Price MC P/E EV / EBITDA 19e 20e 19e 20e European IT Services Capgemini SE EUR 105.60 17,666.2 16.5x 15.0x 9.6x 8.9x Devoteam SA EUR 78.80 656.6 16.1x 13.7x 8.6x 7.7x First Derivati

42. Slide 42: Shaping the future of digital business

    Shaping the future of digital business GFT Technologies SE Michael Werneke (external) Investor Relations Manager Schelmenwasenstraße 34 70567 Stuttgart T +49 711 62042-323 ir@gft.com © 2019 | GFT Technologies SE and its affiliates. All rights reserved.

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