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GOFORE PLC STOCK EXCHANGE RELEASE APRIL 19, 2021 AT 10:00 EET

Gofore Plc Annual Report January 1 – March 31, 2021: Growth continued in the first quarter

Gofore’s net sales in the first quarter of 2021 (January 1 to March 31, 2021) amounted to EUR 25.2 million (2020: EUR 18.8 million), which corresponds to a year-on-year growth of 34.1% .

The adjusted EBITA of the group amounted to EUR 3.5 million (EUR 3.2 million) in the first quarter, which corresponds to 13.9% of net sales (16.8%). The group EBITA amounted to EUR 3.3 million (EUR 2.5 million) in the quarter, which corresponds to 13.1% of net sales (13.0%). Adjusted EBITA for the quarter increased 10.7% year-on-year.

Gofore’s net sales in March 2021 were EUR 9.7 million (EUR 6.8 million). At the end of March, the group employed a total of 790 people (585 people).

CEO Mikael Nylund comments:

“In the first quarter of the year, Gofore’s net sales increased 34% over the same period last year. We consider this a great accomplishment that speaks about the success of our growth strategy. Our work has convinced our long-term and new customers that Gofore is the preferred partner for their journey through a successful digital transformation.

We have also been successful in acquisitions that have brought us new customers, expertise and wonderful people as part of the Gofore family. The number of Goforeans has grown to almost 800. Together we represent groundbreaking digitization know-how, both in terms of technology and in terms of human resource management – the things where the digital transformation of every company requires expertise and support.

Adjusted EBITA rose to EUR 3.5 million in the first quarter, which corresponds to 13.9% of net sales. In other words, we did not quite match the profitability level of the first quarter of the previous year (16.8% of net sales). This was because there was one less working day than last year and our billing rate did not fully meet expectations. The billing rate was affected by the change in the contract period with our largest customer development and administration service center, KEHA Center in Finland. Although there was room for improvement, the factors influencing profitability did not change permanently at the beginning of the year.

The end of the quarter coincided with significant public procurement awards that show how our offering serves our customers in a variety of circumstances. We will continue our collaboration with the city of Espoo, which has selected our ICT advisory services to support the city’s digital transformation and the development of other ICT services. The duration of the framework agreement is seven years and its total estimated value over the contract period is approximately EUR 25 million. Gofore Lead is the main supplier in procurement.

We are also continuing our extensive cooperation with the City of Helsinki. The city of Helsinki selected us as a development partner for the development of the transaction information system for the education department. The maximum value of the agreement is EUR 2.95 million and extends over the years 2021–2022. The agreement also includes the possibility of additional purchases during the development projects in the years 2021–2024. Over the past few years we have assisted the City of Helsinki in managing IT development projects, architectural work and implementing digital services.

With regard to customers from the private sector, I would like to highlight Elisa Corporation, with whom we signed a contract extension in March for quality assurance and testing of software as an integrated service. The agreement is valid until further notice and has an annual value of approx. EUR 1 million. Before that, we had already expanded our collaboration to DevOps as well as agile methods and management consulting. The value of these other services this year is around EUR 1 million.

The focus of our growth strategy was on developing a comprehensive range of consulting services with a focus on digital transformation. The first quarter strengthened our conviction that we are on the right track. In line with our vision, we expect that in the future we will develop into one of the most important consulting firms for digital transformation in Europe. “

The company complies with the semi-annual reporting of the Finnish Securities Market Act. In addition, Gofore publishes a monthly annual report, which contains the net sales and the number of employees for the end of the month as well as the corresponding comparative figures. In addition, in connection with the annual reports for March and September, the net sales, EBITA, adjusted EBITA and EBITA in% for the quarter ending this month as well as the corresponding comparative figures are published. The reviews also include other key indicators and a comparison of metrics across different time periods, making it easier to monitor the company’s growth strategy. The figures presented include total full-time equivalent (FTE) capacity and subcontracting FTE figures. The figures shown in the ratings have not been verified. This business review has not been prepared in accordance with the standard IAS 34 Interim Financial Reporting.

The company uses Adjusted EBITA as an indicator of operational profitability. The calculation formulas for the key figures were published in Gofore’s 2020 annual financial statements and can also be found on the company’s website under Calculation formulas for key figures: https://gofore.com/de/invest/gofore-as-an- investment / key figures /.

Quarterly Performance (IFRS)

1 The figures of CCEA Oy have been consolidated with those of the Gofore Group since March 1st, 2021.
2 The items relating to the adjustment consisted of the transaction costs of CCEA Oy, an acquisition announced in February 2021 and reported as part of the Group since March 1, 2021, totaling EUR 0.193 million.

Unless otherwise stated, the comparative figures in brackets refer to the corresponding period of the previous year. The figures of CCEA Oy have been consolidated with those of the Gofore Group since March 1st, 2021.

1 The total capacity, full-time equivalent (FTE), shows the total capacity of the group’s employees, converted into a value that corresponds to the number of full-time employees. The number includes all staff, regardless of their role. Annual leave, time off in lieu of overtime, sick leave, or other short-term absences will not affect the number. Part-time contracts and other long-term deviations from normal working hours reduce the total capacity compared to the total number of employees.
2 The FTE (Full Time Equivalent) number for subcontracting shows the total amount of subcontracting used for invoicing, converted to a value that corresponds to the number of full-time employees.

Further inquiries:
Mikael Nylund, CEO of Gofore Plc
tel. +358 40 540 2280
[email protected]

Gofore Plc is a digital transformation consultancy with almost 800 powerful employees in Finland, Germany, Spain and Estonia – top experts in our industry who are the heart, brain and hands of our company. We use our comprehensive range of services – advice, coding, design and security – as tools to stimulate positive change. We care about our employees, our customers and the surrounding world. Our values ​​determine our business: Gofore is a great place to work that lives from customer success. In 2020, our net sales amounted to EUR 78 million. Gofore Plc is listed on Nasdaq Helsinki Ltd. listed in Finland. Get to know us better at www.gofore.com.