• Turnover in its core business grows by 8.7 percent
• No change to the forecasts for 2019 and 2020

GK Software SE continued to register moderate growth during the first quarter of 2019 and generated turnover of EUR 24.56 million (Q1 2018: EUR 23.67 million). The GK/Retail core business grew once again, by 8.7 percent; the strong turnover in software development was able to make up for the ongoing shortfall in licence revenues. As a result, the EBITDA amounted to EUR -0.67 million (Q1 2018: EUR 1.34 million).

The Company was able to gain two more customers in the USA and sign an agreement on a subscription basis in Colombia during the first quarter. One US customer also decided to introduce our new petrol station solution and it is due to go live in Q3 for the first time. What was particularly important was that SAP accepted the first solution based on artificial intelligence within its portfolio. SAP will now market the solution for automated pricing called SAP Dynamic Pricing by GK internationally; the solution is based on the new AIR platform (Artificial Intelligence for Retail).

The Management Board is continuing to stand by its medium-term forecast up until 2020 and its forecast for the current financial year; both of these were published in the last financial statement.

The statement for the first quarter of 2019 can be located at:
https://investor.gk-software.com/de/veroeffentlichungen/financial-reports?task=download&cid=691

About GK Software SE
GK Software SE is a leading developer and provider of standard software for the retail sector, and currently counts 22 percent of the world's 50 largest retailers among its customer base. The company offers an extensive range of solutions for stores and enterprise headquarters as well as for the implementation of contemporary omni-channel retail concepts. Thanks to its open and platform-independent software solutions in the GK/Retail Suite, the company has established itself as one of the market's leading providers of technology and innovations. Its solutions enable retail chains with numerous stores to optimize their business processes and to benefit from significant potential for saving costs and implementing customer loyalty programs in order to improve their competitiveness. In addition to its own software solutions, GK Software SE also offers customers a comprehensive range of implementation and maintenance services. Having been acquired in 2013, AWEK GmbH and in 2015, the retail segment of DBS Data Business Systems Inc. In 2017, the company acquired a majority shareholding in prudsys AG, a company focused on artificial intelligence. In 2018, the valuephone GmbH was acquired, which develops leading solutions for mobile consumers.

The company employs 1,223 members of staff (figures for 31 March 2019) across its headquarters in Schöneck (Germany) and other business locations in Germany, Czech Republic, Switzerland, South Africa, Russia, Ukraine and the USA. GK Software SE's customers include many well-known retailers from both Germany and beyond, including Galeria Kaufhof, Parfümerie Douglas, Coop (Switzerland), EDEKA, Hornbach, JYSK Nordic, Lidl, Loblaw, Migros, Netto Marken-Discount and Tchibo. The software is currently being used at 297,000 installations across approximately 55,000 stores in 58 countries. The company has grown rapidly in recent years and its sales revenues totaled EUR 106.2 million in 2018. Since launching the company in 1990, the two founders Rainer Gläß (CEO) and Stephan Kronmüller (deputy board member), together with the experienced management team, have shaped GK Software into a profitable company exhibiting strong growth.

Further information about the company: http://www.gk-software.com

Contact

Investor Relations
GK Software SE
Dr. René Schiller
Phone: +49 (0)37464-84-264
Fax: +49 (0)37464-84-15
E-mail: [email protected]