GK Software AG2020年年度報告.pdf

《GK Software AG2020年年度報告.pdf》由會員分享，可在線閱讀，更多相關《GK Software AG2020年年度報告.pdf（117頁珍藏版）》請在三個皮匠報告上搜索。

1、Annual Report 20202Annual Report 2020|GK Software SEDear readers,We are presenting this Annual Report to you in a new screen-optimised layout for the first time.The purpose of this is to adapt the document to changes in digital reading and usage habits.Our goal is to make it is as simple as possible

2、 for you to navigate your way through the Report.Despite optimising the Report to be read on a screen,we have,of course,made sure that the document can still be printed.We hope that these changes make it easier for you to read our Annual Report.Turnover29,02356,16185,251117,5603M 2020H1 20209M 2020T

3、otal 2020EBIT1,0641,9575,57710,535Surplus(546)(133)2,9726,266Summary of Consolidated Results31.12.202031.12.201931.12.20182020/2019 changesin%TurnoverEUR K117,560115,448106,1511.8Operating performanceEUR K118,391115,448106,1512.6Total operating revenueEUR K122,688119,285109,7682.9EBITEUR K10,5353,43

4、01,595207.1EBIT margin(on turnover)%9.03.0 1.5 0EBIT margin(on total operating revenue)%8.62.9 1.5 0EBITDAEUR K19,07812,2566,83355.7EBTEUR K9,0901,233171250Annual net profit/lossEUR K6,266(3,139)9230Earnings per share(weighted)EUR3.04(1.60)0.480Earnings per share(diluted)EUR3.00(1.60)0.480Equity rat

5、io%44.037.136.20Net debtEUR K24311,9079,61198.0Employees1,1621,1681,147(0.5)Development by quarter(EUR K)Go to main table of contentsGo to financial calendarSearch in documentGo forward a pageGo back a pageGo to previous viewGo to next viewTO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATE

6、D ACCOUNTSFURTHER INFORMATION4 To the Shareholders5 Letter from the Management Board9 Report of the Supervisory Board12 Corporate Governance Report 12 Cooperation between the Management Board and the Supervisory Board12 Transparency12 Risk management12 Statement of compliance16GKSoftwareSEShares16 B

7、asic data16 Summary/share performance16 Number of shares issued16 Shareholder structure17 Directors dealings in 202017 Investor relations18 Products and Services22 New customers acquired in 202023 Consolidated Management Report24 Consolidated Management Report24 The Companys Business Model30 Economi

8、c report32 Explanation of the business results and an analysis of the assets,financial and earnings situation40 Report on the Risks and Opportunities for the GKSoftwareGroup40 Opportunities 41 Risks45 Overall risk position46 Internal monitoring and risk management systems with regard to the Groups a

9、ccounting process47 Risk reporting in relation to the use of financial instruments48 Forecast report 48 Market environment49 Company outlook50 General statement for 202151 Remuneration report53 Takeover-relevant information in accordance with Section 315a HGB55 Corporate Governance Report55 Informat

10、ion on separate non-financial report55 Information on female quota and diversity concept55 Corporate governance statement(Section 289f,Section 315d HGB)56 Consolidated Financial Statement57 Consolidated Balance Sheet58 Consolidated Statement of Income and Accumulated Earnings59 Consolidated Statemen

11、t of Changes in Equity 60 Consolidated Cash Flow Statement61 Notes on the Consolidated Accounts61 1 Principles of Reporting65 2 Accounting Methods73 3 Significant Assessment Uncertainties and Discretionary Decisions78 4 Notes on the Consolidated Balance Sheet94 5 Notes on the Consolidated Profit and

12、 Loss Statement98 6 Notes on the Cash Flow Statement99 7 Items Not Entered99 8 Other Information106 Guarantee by the Legal Representatives 107 Independent Auditors Report107 Report on the Audit of the Consolidated Financial Statements and of the Group Management Report115 Financial Calendar116 Legal

13、 NoticeTO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION4Annual Report 2020|GK Software SE Rainer GlssChief Executive OfficerTo the Shareholders5 Letter from the Management Board9 Report of the Supervisory Board12 Corporate Governance Report 12 Cooperation bet

14、ween the Management Board and the Supervisory Board12 Transparency12 Risk management12 Statement of compliance16GKSoftwareSEShares16 Basic data16 Summary/share performance16 Number of shares issued16 Shareholder structure17 Directors dealings in 202017 Investor relations18 Products and Services22New

15、customersacquiredin2020CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION5Annual Report 2020|GK Software SELetter from the Management BoardLetter from the Management BoardDear shareholders,We would like to take this opportunity to present you with the 2020 annu

16、al report for GK Software1.We are delighted to inform you that,even in this past year when the economic situation has been difficult for everyone due to the global pandemic,we were able to continue our growth and have,in particular,achieved significant success on the earnings side.We were able to in

17、crease the turnover to EUR117.56 million,exceeding the previous years results by EUR2.11 million(up 1.8 percent).This growth was again attributable to our core business segment CLOUD4RETAIL2,which increased by around EUR3.46 million compared to the previous year.Our EBITDA increase was even greater,

18、reaching EUR19.08 million and exceeding the previous years figure(EUR12.26 million)by more than half.Earnings before interest and taxes(EBIT)amounted to EUR10.54 million,tripling the previous years figure(2019:EUR3.43 million).However,2020 was an outstanding year for the company not only due to the

19、excellent economic results.From our point of view it also marked an important milestone in the transformation of the company into a cloud company.On the one hand,this is underlined by the first purely SaaS transactions for our core solution CLOUD4RETAIL and,on the 1ThenameGKSoftwarealwaysreferstothe

20、corporategroupinthefollowingtext.“TheCompany”isalsousedasasynonym.WhenGKSoftwareSEisused,itexclusively refers to the individual company.2 In the course of reorganising the solutions portfolio and its focus on cloud retail,theGK/RetailbusinesssegmentwasrenamedCLOUD4RETAIL.other hand,by the large-scal

21、e expansion of our high-performance cloud platform,which Deutsche Fiskal is the first to use.This platform is able to exchange transactions in the high double-digit million range with a hundred thousand devices every day in real time.Within a short space of time,Fiskal Cloud transactions broke the o

22、ne billion barrier.This is the tried and tested basis for the new solution GK SPOT,which we announced in March 2021.This will be a cloud-based big-data solution that uses state-of-the-art technology,reacts in real time,and enhanced by artificial intelligence(AI)creates new opportunities for active r

23、etailing.2020 was a successful year in terms of acquiring new customers despite the limited sales opportunities due to Covid-19,although due to this unusual situation we were unable to make decisions about particular projects or even had to postpone them.The fact that we were able to make significan

24、t progress towards establishing ourselves as a cloud company not only in the public eye,but also in terms of our product portfolio deserves a special mention.As a result,four customers opted to use CLOUD4RETAIL as Software-as-a-Service.This means that GK Software not only offers the solution,but als

25、o manages its operation in the cloud.This involves long-term contracts,which ensure that the proportion of recurring sales will increase over the next few years.A further ten customers opted for the conventional form of CLOUD4RETAIL.We will be working with existing customers on three of the overall

26、14 new projects for our core solution.These are switching from an older solution to CLOUD4RETAIL.We were also able to successfully market our Mobile Consumer Assistant and Self Service(Bring your own Device)products,which will be used by several customers.In 2020,we proved once again that we were ab

27、le to assert ourselves and our solutions on the international market.We have customers from South Africa,the US,Denmark,Egypt,Bulgaria,Canada,France,Germany and,for the first time,New Zealand.It is extraordinarily encouraging to see that our increased efforts to tap the French market have been succe

28、ssful.With the acquisition of a major French retailer,which ranks among the Global Top 50,we have made a first important breakthrough in penetrating this internationally significant market.If we succeed here,we expect this to open other doors for us in the future.We are also proud of the fact that i

29、ndependent market studies have once again confirmed our international market leadership.In 2020,the Global POS Software study performed annually by the British advisory company rbr 3found that,between June 2019 and June 2020,GK rolled out more new POS installations around the world in its target mar

30、ket(retailers with more than one thousand systems,not including fuel stations and hospitality)than any other provider in the market.Even taking into account all segments(including fuel stations and hospitality),GK Software was the worlds number 2 in terms of new installations during this 3rbr:Global

31、POSSoftware2020CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION6Annual Report 2020|GK Software SELetter from the Management Boardperiod.GK Software has now also advanced to 6th place in terms of overall worldwide POS installations.With a total share of 20 per

32、cent,GK Software was also responsible Europe-wide for more new installations than any other competitor.As far as overall installations are concerned,our company is the clear market leader in Central and Eastern Europe and number 2 in the whole of Europe.As regards our major partnerships,the fact tha

33、t SAP Industry Cloud incorporated practically all of our solutions was of tremendous importance for the retail industry as it shows that even SAP trusts in the quality of our cloud solutions.Parallel to this,our solutions were once again put through SAPs premium qualification process and are now off

34、ered by SAP throughout the world in their currently valid version.A major event in the past year was the agreement of a partnership with Microsoft in the scope of which we will be introducing our CLOUD4RETAIL solution on the cloud platform Azure.As part of a global alliance,a co-selling agreement no

35、w exists that allows both sides to sell each others solutions.In the past fiscal year 2020,our research&development work continued to be dominated by the expansion of our cloud services as well as the industry-specific developments.GK Drive was rolled out in the US and the first customer in Germany

36、introduced our Hospitality solution in all of its restaurants.Naturally,Deutsche Fiskal accounted for one of the main areas of development.This solution was completed and certified in 2020.As of today,most major customers have rolled out and are using the Fiskal Cloud.The Fiskal Cloud Archiv,an exte

37、nsion product,was also further developed and is already being used by several customers since April 2021.In 2020,the retail7 solution was more or less ready for the market and was introduced into the first pilot installations.In the retail7 segment,we also developed the emailbon.de solution.The firs

38、t customers have already placed orders for this as an SaaS product.In the AIR(Artificial Intelligence for Retail)segment,the core solutions were further developed,also taking our experiences with new customers into account,and a new module for image similarity was launched.In the reporting period,we

39、 were able to expand our installation base for our core solutions by about another 22,000 units with the effect that some 346,000 systems(tills,mobile devices,servers)are now in productive use in 63 countries.Not included in these figures are the installations of our TransAction+payment platform in

40、the US and the AI solution Realtime Decisioning Engine for product recommendations,as these products are distributed in a technically different manner.With the launch of a number of major new customer loyalty programmes,and the relaunch of existing ones,by leading German retailers,the related apps b

41、ased on our Mobile Consumer Assistant platform attracted many millions of downloads.As in previous years,we were able to strengthen our business relations with almost all our existing customers.These relationships are a reliable component in GK Softwares business development as our customers are per

42、manently adapting their solutions to new requirements in their business by expanding into new countries,developing new sales concepts or introducing omni-channel standards.This report includes a new medium-term forecast for the period up to the end of the 2023 fiscal year.This will only apply,howeve

43、r,if the ongoing vaccination campaigns are able to curb and ultimately end the pandemic by the end of the current fiscal year.Should this be the case and things return to a more normal pre-coronavirus state,we expect to be able to achieve a sales range in the region of EUR160 million and EUR175 mill

44、ion by the end of 2023.We are aware that launching GK SPOT,or tapping new geographical markets or further potential particularly in the Deutsche Fiskal and prudsys segments could result in additional organic growth,which could potentially be supported by further inorganic growth without there being

45、any detailed plans for the latter at present.We assume that our SaaS business in the core segment(without Deutsche Fiskal)will continue to grow each year at more or less the same rate as in the past fiscal year.As regards the EBIT,our target figure remains the same 15 percent margin on revenue.Wheth

46、er or not the pandemic can be controlled will have a major influence on when we can actually reach this target.After reaching the 15 percent mark,we intend to maintain and sustain this level.Overall,we consider ourselves to be in a good position to continue our growth course and increase our profita

47、bility in 2021 and the coming years.The successful and substantially oversubscribed capital increase in March of this year has shown us that the capital market shares this opinion.CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION7Annual Report 2020|GK Software

48、 SELetter from the Management BoardSo we will continue to be optimistic about the years ahead and are delighted that you are supporting GK Software SE and its pathway of growth.We would also like to take this opportunity to thank you for placing your long-term trust in the company.Schneck,28 April 2

49、021The Management BoardRainer GlssChief Executive OfficerAndr HergertChief Financial OfficerCONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION8Annual Report 2020|GK Software SELetter from the Management BoardDr Philip ReimannChair of the Supervisory BoardCONSOL

50、IDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION9Annual Report 2020|GK Software SEReport of the Supervisory BoardReport of the Supervisory BoardDear Shareholders,We would like to take this opportunity to present you with the report of the Supervisory Board of GK So

51、ftware SE for the 2020 fiscal year.This year continued to be dominated by the implementation of the efficiency programme,which was supported by the Supervisory Board.The results of the fiscal year confirmed to the Supervisory Board that the course adopted by the Company was the correct one.Compositi

52、on of the Supervisory BoardIn accordance with the articles of association,the Supervisory Board consists of three members.During the 2020 fiscal year these were:Uwe Ludwig(Chair)until 13 March 2020 Dr Philipp Reimann(Chair)-since 27 March 2020 Thomas Bleier(Deputy Chair)and Herbert Zinn An unplanned

53、 change had to be made to the composition of the Supervisory Board this year.Mr Ludwig,who had been on the board since 2001,had to resign from his position for health reasons.In response to an application by the Companys Management Board,Chemnitz Local Court appointed Dr Philip Reimann as a member o

54、f the Supervisory Board and its Chair on 26 March.The 2020 ordinary shareholders meeting confirmed Dr Reimann in this position until the shareholders meeting in 2024.MeetingsThe Supervisory Board held its ordinary meetings on 17 February,22 April,3 June,30 June,26 August and 10 December 2020,whereby

55、 only the February,30 June and August meetings were attended in person.Due to the Covid-19 situation,the April,3 June and December meetings were held in the form of video conferences.Six Supervisory Board meetings were also held in 2020 on 15 April,31 July,15 September,30 October,26 November and 4 D

56、ecember in the form of telephone conferences.The board members also held separate preliminary meetings before each meeting of the Supervisory Board for the purpose of coordinating matters internally and met on the sidelines of the annual shareholders meeting on 30 June 2020.All members of the board

57、attended all ordinary meetings and conferences.It is customary practice at GK Software to always involve the representatives of the Management Board in the meetings.Beyond these meetings,the members of the Supervisory Board were also regularly in contact with each other and particularly through the

58、Chair of the Supervisory Board also with the Management Board and the members of the Group Management Board.Decisions were made during the meetings or by way of a circulation procedure.During its meetings,the Supervisory Board was briefed in detail about the Companys economic and financial situation

59、 and its fundamental corporate policy by way of verbal and written reports from the Management Board.At the request of the Supervisory Board,the Management Board also provided interim reports on the latest course of business and earnings at regular intervals between the meetings and promptly forward

60、ed the minutes of each Group Management Board meeting.Functions of the Supervisory BoardDuring the 2020 fiscal year,GK Software SE fulfilled the tasks incumbent upon it according to law,the articles of association,the recommendations of the governments“German Corporate Governance Code”commission and

61、 the Supervisory Boards latest rules of procedure,and monitored the Companys management continuously and carefully.During the 2020 fiscal year,the Supervisory Board focused particularly on continuing to implement the efficiency programme;the board had played a key role in initiating and supporting t

62、his programme.It had reports drawn up at regular intervals about the status of the analysis and the implementation of the programme.It also supported the Group Management CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION10Annual Report 2020|GK Software SERepor

63、t of the Supervisory BoardBoard in defining and implementing the targets for the fiscal year and beyond.The ongoing development and adaptation of the risk management systems was a subject again urgently pursued by the Supervisory Board during the 2020 fiscal year.As a result,the Supervisory Board ca

64、lled for reports on the progress of the implementation of the security concept,which is being continually upgraded,and on the ongoing establishment of formalised administrative processes,the revision of fundamental procedures in the controlling department and the work of the data protection officer.

65、The Supervisory Board welcomed the progress achieved in these fields and the implementation of the initial steps towards establishing a compliance management system within the GK Group,which is due to become an integral part of the Companys procedures as it becomes more advanced and is finally estab

66、lished.The Supervisory Board also focused on the appropriateness of the remuneration paid to Management Board members,particularly in respect of the adjustments that have to be made to the existing employment contracts and pension agreements.As in previous years,we focused our attention on the relat

67、ion of the remuneration payments to the economic situation of the Company and on the conditions prevalent at comparable companies,the soundness of the overall remuneration structure within GK Software and the composition of fixed and variable salary elements.In order to monitor the Companys manageme

68、nt,the Supervisory Board took account of the annual budget passed for 2020 and,because of the significant discrepancies already noticeable during the first half of the year,had reports prepared by the Management Board,particularly regarding the ongoing development of costs,profitability,specific cha

69、racteristics of corporate policy,the reasons behind the corporate planning in all business segments,the further course of business and important measures adopted by the Company.Throughout the entire fiscal year and particularly during the second half of the year,the Supervisory Board also requested

70、additional reports on business developments.Throughout the year,the Management Board also supplied the Supervisory Board with information,both during and outside the meetings,which was discussed and critically reviewed by the Supervisory Board.Corporate GovernanceThe Supervisory Board and Management

71、 Board have been acting for many years in the knowledge that good corporate governance forms an important basis for the Companys success and is therefore in the best interests of shareholders and capital markets.In April 2021,the Management Board and the Supervisory Board issued their annual declara

72、tion of compliance in accordance with Section 161 AktG German Stock Corporation Act.The wording of this declaration is included in this annual report as part of the Corporate Governance Report.In this declaration,both the Management Board and the Supervisory Board have pledged to follow the recommen

73、dations of the German Corporate Governance Code as far as possible.On 31 August 2015,a decision was made on the legal stipulation to have equal representation of women and men in management positions;this continues to apply.Again in 2020,no conflicts of interest arose for the members of the Supervis

74、ory Board.Sustainability reportingIn line with the statutory provisions,an independent sustainability report is being published by GK Software SE together with this report for the third time.The Supervisory Board therefore requested an explanation of the principles of reporting and the content of th

75、e sustainability report from the Management Board at the same time as the annual accounts and consolidated accounts in accordance with requirements.Audit of the annual accounts for2020The GK Software SE annual accounts compiled by the Management Board in keeping with the guidelines set by the German

76、 Commercial Code,the IFRS consolidated accounts,and the respective management report were audited by the auditing firm PriceWaterhouseCoopers GmbH,Erfurt,and were given an unqualified audit certificate.Taking into account these audit reports,the Supervisory Board inspected the annual accounts compil

77、ed by the Management Board,the consolidated accounts,CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION11Annual Report 2020|GK Software SEReport of the Supervisory Boardthe dependency report,the management report of GK Software SE and of the Group,and the Manag

78、ement Boards proposal for the appropriation of profits,for 2020.At its meeting on 27 April 2021,the Supervisory Board asked the Management Board to explain the 2020 annual and consolidated accounts and to report on the profitability,the Companys equity,the ongoing course of business and the Companys

79、 broader situation.All members of the Supervisory Board received the necessary paperwork and documents prior to this meeting.During the meeting,the auditors commented on the Management Boards presentation and explained the audit findings on the basis of the audit reports and answered all the questio

80、ns on these reports.The auditors were able to satisfactorily answer all issues raised.There are no concerns regarding the auditors independence.At its meeting on 27 April 2021,the Supervisory Board approved the annual accounts of GK Software SE and endorsed the consolidated accounts of GK Software.T

81、he annual accounts have therefore been approved.The Management Board also prepared a report on the relationships with associated companies in accordance with Section 312 AktG.The auditors examined this report and gave an oral account of the results of their examination at the meeting on 27 April 202

82、1.The review by the Supervisory Board did not give rise to any grounds for objection.Accordingly,it had no objection to the Management Boards final statement in its report in accordance with Section 312 AktG and confirmed this by voting in favour of it at the meeting on 27 April 2021.The Supervisory

83、 Board would like to thank the Management Board,the complete management team and all employees for their work in 2020.Schneck,27 April 2021Dr Philip ReimannChair of the Supervisory BoardCONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION12Annual Report 2020|GK S

84、oftware SECorporate Governance ReportCorporate Governance Report in accordance with Section 289a HGB German Commercial CodeGK Software considers responsible and transparent behaviour to be absolutely essential for its long-term economic value creation.Both the Management and the Supervisory Board ha

85、ve therefore issued the statutory declaration of compliance in accordance with Section 161 AktG.Accordingly,monitoring compliance with the declaration is considered an important task for the Management Board and Supervisory Board.The declaration is issued every year and is available to the public on

86、 the Internet at https:/investor.gk- in the“Corporate Governance”section.Cooperation between the Management Board and the Supervisory BoardThe Management Board and the Supervisory Board have been working together for many years on a basis of trust.The Management Board reports at regular intervals to

87、 the Supervisory Board on profitability and the Groups strategy and its implementation,and also on existing or potential risks.These reports are given during the scheduled Supervisory Board meetings,ten of which were held in the past fiscal year,and also directly through regular monthly meetings wit

88、h the Chair of the Supervisory Board.Further information on this can be found in the Supervisory Boards report.Due to the fact that it has only three members,the Supervisory Board did not form any committees.All issues are discussed and decided by the full board.The Chair of the Supervisory Board is

89、 solely authorised to conduct negotiations on personnel decisions that pertain to the Management Board,but these must be approved by the full board.No conflicts of interest arose for members of the Management Board or the Supervisory Board.TransparencyGKSoftware deliberately chose to have its shares

90、 listed in the most stringently regulated sector at Deutsche Brse,the Prime Standard,for its flotation in the summer of 2008.The highest possible degree of transparency towards its investors and all the other participants in the capital markets has been one of the most important Company principles f

91、rom the outset.The Company will also appoint a voting proxy for the 2021 Annual General Meeting;this will allow shareholders to exercise their voting rights,even if they are unable to attend the meeting in person.All public information,such as ad-hoc announcements and press releases,financial report

92、s or reports on the annual shareholders meeting,can be viewed at any time on the Companys website.Risk managementThe risk-management system established by the Company is geared towards the needs of its business.It is designed to help identify risks at an early stage and to prevent or limit any risks

93、 that occur.Please see the Consolidated Report for details.Statement of complianceOn 13 April 2021,the Management Board and the Supervisory Board of GK Software SE declared that,since issuing the last annual declaration of compliance in April 2020,the recommendations of the governments German Corpor

94、ate Governance Code commission had been met,apart from the exceptions noted in the declaration of April 2020,and will continue to be met with the following exceptions.The Corporate Governance Code in its 16 December 2019 version,which was valid at the time this declaration was issued,forms the basis

95、 for this declaration.CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION13Annual Report 2020|GK Software SECorporate Governance ReportA.Management and supervisionI.Business management tasks of the Management BoardPrinciple 3,Recommendation A.1 In the interests

96、of the Company,the candidates for management positions will be selected by the Management Board mainly on the basis of their personal skills and abilities.Only then will other objective background circumstances of the candidates be taken into account so as not to generally restrict the interests of

97、the Company.When setting the target rate for the proportion of women at the first management level below the Management Board,the Management Board will take into account that this consists of only three members.Principle 5,Recommendation A.2 Work on completing the compliance system is still in progr

98、ess.The Management Board plans to disclose the main features of this once it is completed.Opportunities for employers and outside parties to securely provide information about legal infringements already exist.III.Function of the annual shareholders meetingPrinciple 8,Recommendation A.5 The Companys

99、 articles of association do not provide any regulations for this case.The Management Board will comply with the statutory provisions envisaged for these cases and shall reserve the right to summon an extraordinary shareholders meeting.B.Composition of the Management BoardPrinciple 9,Recommendation B

100、.1 When filling vacant positions on the Management Board,the Supervisory Board will mainly take into account the candidates personal suitability,based on their individual skills and specialist expertise,so as not to generally restrict the interests of the Company.Only then will other criteria be con

101、sidered.When setting the target rate for the proportion of women on the Management Board,the Supervisory Board will essentially take into account that this consists of only two members.Principle 9,Recommendation B.2 The Supervisory Board and the Management Board will jointly ensure long-term plannin

102、g with regard to successors.This method will be adapted to the relevant requirements of the specific situation in each individual case and will be described in the declaration on company management for 2021.Principle 9,Recommendation B.5 There is no age limit for members of the Management Board;GK S

103、oftware SE believes that the professional qualifications of the members of the Management Board are of greater significance.C.Composition of the Supervisory BoardI.Composition of the Supervisory BoardPrinciple 11,Recommendation C.1 The composition of the Supervisory Board of GK Software SE is not de

104、cided by the Supervisory Board,but by the Companys Annual General Meeting.The Supervisory Board aims at successful cooperation between its members and constructive cooperation with the Management Board.The nominations submitted by the Supervisory Board at the annual shareholders meeting will take in

105、to account the geographical distribution and the degree of complexity of the business activities of GK Software.Criteria such as age,origin or gender of the candidates are not primary factors in considerations.When setting the target rate for the proportion of women on the Supervisory Board,the Supe

106、rvisory Board will essentially take into account that this consists of only three members.Principle 11,Recommendation C.2 There is no obligatory age limit for the members of the Supervisory Board as particularly the older members of the Supervisory Board enrich the board with their wealth of experie

107、nce and their professional qualifications are of greater significance.II.Independence of the members of the Supervisory BoardPrinciple 12,Recommendation C.7 In special situations,such as proposals for the necessary appointment of members to the Supervisory Board by a court,the Management Board will,

108、in the best interest of the Company,also propose candidates who do not meet the criteria of the Code as regards independence.The Company does not see any restrictions of independence for the Supervisory Board members who have served on this board for more than twelve years.CONSOLIDATED MANAGEMENT RE

109、PORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION14Annual Report 2020|GK Software SECorporate Governance ReportPrinciple 12,Recommendation C.10 In special situations,such as proposals for the necessary appointment of members to the Supervisory Board,who at the same time are to be appoi

110、nted as Chairpersons of the Supervisory Board by a court,the Management Board will,in the best interest of the Company,also propose candidates who do not meet the criteria of the Code as regards independence.D.How the Supervisory Board operatesI.Rules of procedureRecommendation D.1 The rules of proc

111、edure for the Supervisory Board are not made public.II.Cooperation within the Supervisory Board and with the Management BoardPrinciple 14,Recommendation D.2 The Supervisory Board of GK Software SE does not form any committees as,due to its size(the Supervisory Board consists of three members),meetin

112、gs attended by all members of the Supervisory Board are the most efficient way to guarantee that consistent and extensive information is provided to all members of the Supervisory Board.All questions can be discussed and answered appropriately when the full board meets.Principle 14,Recommendation D.

113、3 See explanation for the deviation from Recommendation D.2.Principle 14,Recommendation D.4 See explanation for the deviation from Recommendation D.2.Principle 14,Recommendation D.5 See explanation for the deviation from Recommendation D.2.Recommendation D.7 The Supervisory Board usually meets toget

114、her with the members of the Management Board,as both boards believe that the flow of information and the discussion of subjects that concern the Company can be best handled this way.Recommendation D.11 See explanation for the deviation from Recommendation D.2.F.Transparency and external reportingRec

115、ommendation F.2 The consolidated accounts will not be published within 90 days of the end of the fiscal year,but in keeping with the current guidelines of Deutsche Brse AG after four months.The interim reports will not be presented after 45 days,but in keeping with the current guidelines of Deutsche

116、 Brse AG after two months.GK Software SE believes that the periods of time stipulated by Deutsche Brse AG are sufficient to provide shareholders with detailed information.G.Remuneration of the Management Board and the Supervisory BoardI.Remuneration of the Management BoardRecommendation G.1 It is no

117、t possible to precisely determine the relative share that the fixed remuneration on the one hand and short-term variable and long-term variable elements of remuneration on the other hand have in the overall target remuneration.Whereas the ratio of fixed remuneration and maximum short-term variable r

118、emuneration has been clearly defined,the long-term variable remuneration is paid out solely in the form of share options;however,the value these shares will have on the date of issue cannot be determined at the time the option is exercised.The remuneration system stipulates the correlation between t

119、he achievement of the previously agreed performance criteria and the variable remuneration.However,the Supervisory Board reserves the right to consider the Companys overall situation when assessing the targets that have actually been achieved in terms of overall target achievement.Recommendation G.6

120、The variable remuneration that results from achieving long-term targets does not exceed the proportion resulting from short-term targets pro forma.However,CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION15Annual Report 2020|GK Software SECorporate Governance

121、Reportit is deliberately assumed that a value lever,which cannot be precisely determined,is inherent in the instruments used to determine the remuneration for the long-term targets(share options)in the case of a growth stock as presented by the Company,which can and should result in a situation wher

122、e the remuneration of the long-term targets significantly exceeds that of the short-term targets.Recommendation G.10The members of the Management Board are not expected to invest the variable remuneration granted to them mainly in Company shares,because the long-term remuneration is already paid out

123、 solely in the form of share options.Recommendation G.11In justified cases,there is no possibility for the Supervisory Board at GK Software to withhold or reclaim any variable remuneration earned.In such cases,mutual agreement will be sought with the members of the Management Board.Recommendation G.

124、13The Supervisory Board will ensure in future contracts that payments to a member of the Management Board do not exceed the value of two annual salaries if they leave the Management Board prematurely.Recommendation G.14The Supervisory Board will ensure in future contracts that payment promises in th

125、e event that the employment contract is ended prematurely by the member of the Management Board due to a change of control are not agreed.As both members of the Management Board were appointed to their positions over a decade ago,the practice adopted for years has been applied to one of the current

126、contracts.Recommendation G.15For those members of the Management Board,who hold supervisory board positions within the Group,the remuneration is not currently taken into account in their salaries as the decisions were made before the corresponding rules of the Code were adopted and the additional re

127、sponsibility associated with this is compensated.When making future decisions,the Supervisory Board plans to ensure that the remuneration for supervisory board positions within the Group is taken into account in the salaries.CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTH

128、ER INFORMATION16Annual Report 2020|GK Software SEGKSoftware SE SharesGKSoftware SE Shares Basic dataT.01 Basic dataSecurities Identification Number(WKN)757142ISINDE0007571424Trading symbolGKSGKSoftware AG IPO19 June 2008Type of sharesOrdinary stock in the name of the holder without any nominal value

129、(individual share certificates)Trading marketsFrankfurt and XETRAMarket segmentRegulated Market(Prime Standard)Designated sponsorICF Bank AGNumber of shares2,051,100Share capitalEUR2.051.100Free float45.15%Highest price in 2020EUR100.50(4 December 2020)Lowest price in 2020EUR35.00(19 March 2020)Summ

130、ary/share performanceThe price of GKSoftware shares,which are listed on the Prime Standard section of the Frankfurt Stock Exchange,soared in the last year.The share price sank briefly to EUR35 following the initial reports on COVID-19,but was able to recover and,at the end of the reporting period,ha

131、d reached EUR100.50,significantly higher than at the start of the year.Market capitalisation lay at EUR206 million at the end of the year.Number of shares issuedOn 31 December 2020,the total number of voting rights was 2,051,100 shares at the end of the reporting period.On 31 March 2021,the total nu

132、mber of voting rights was 2,245,925 shares.Shareholder structureGKSoftware SE has an extremely stable shareholder base and this is enabling the Company to achieve long-term and sustained development.The shareholder structure on the reporting date(31 December 2020)was as follows:Rainer Glss,company f

133、ounder and Chair of the Management Board,directly held 3.31 percent and,indirectly through Rainer Glss GKSoftwareTecDAX20082009201020112012201320142015201620172018201920200100200300400500600700Rainer Gl 29.37%Stephan Kronmller 25.48%Freefloat 45.15%CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCO

134、NSOLIDATED ACCOUNTSFURTHER INFORMATION17Annual Report 2020|GK Software SEGKSoftware SE SharesVermgensverwaltungs GmbH&Co.KG,26.06 percent of the shares.Stephan Kronmller,also a company founder and the former Head of Technology and Development,directly held 1.73 percent and,through Stephan Kronmller

135、Vermgensverwaltungs GmbH&Co.KG,23.75 percent of shares.This meant that 45.15 percent of the shares were in free float on 31 December 2020.The Company was informed about the following holdings in GKSoftware SE,which exceeded the 3 percent threshold:T.02 Amounts exceeding/falling below the threshold v

136、alueDateShareholderProportionin%12.1.20211Scherzer&Co.AG,Cologne4.9629.1.2021Wilhelm K.T.Zours(of which,among others,Deutsche Balaton Aktiengesellschaft,Heidelberg with 3.18%)6.22Directors dealings in 2020T.03 Directors DealingsDatePerson tradingPositionActivityVolume QuantityEUR12.6.2020Andr Herger

137、t Management BoardPurchase84,950.002,5001Initialnotificationof5.23%on6March2012.Informationonthecurrentportfolio by the shareholder on 17 March 2016.Investor relationsGKSoftware deliberately chose to have its shares listed in the most stringently regulated sector at Deutsche Brse,the Prime Standard,

138、for its flotation in the summer of 2008.The highest possible degree of transparency towards its investors and all the other participants in the capital markets has been one of the most important Company principles from the outset.Andr Hergert,the CFO,is responsible for investor relations,which has b

139、een assigned its own department.This guarantees that any enquiries from investors and potential investors are answered immediately.GKSoftware SE also attaches great importance to providing a continual flow of information for the future.Among other things,this involves the completion of quarterly rep

140、orts and extensive half-yearly and annual reports in German and English,a finance calendar,compulsory announcements,which have to be published immediately,and corporate news items.The accounting system has been adapted to the international IFRS accounting standards and also meets investors requireme

141、nts for information.As in previous years,GK Software will hold its analysts conference during the Frankfurt Equity Capital Forum in 2020 again.Investor and press roadshows also take place at regular intervals,so that the Company remains in permanent contact with the capital markets.CONSOLIDATED MANA

142、GEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION18Annual Report 2020|GK Software SEProducts and ServicesProducts and ServicesThe CLOUD4RETAIL platformThe CLOUD4RETAIL platform is the technological basis for the major share of GK Softwares solutions.All solutions based on this

143、 cloud platform adhere to identical development paradigms and a comprehensive framework.The purpose of this is to enable software components to be used multiple times and resources to be shifted quickly between the various modules based on the platform.CLOUD4RETAILs main goal is to further reduce th

144、e complexity of the various retail processes by way of a suitable platform solution and create solutions that remain operable and manageable for the users despite growing demands,particularly from consumers.The Companys slogan“Simply Retail”takes this into account.This is why the Company has made su

145、ch significant investments during the last few years in order to enable the process of digital transformation with specific solutions.This has meant that significant parts of the range of solutions have been newly developed in order to safeguard the future viability of the GK range of solutions for

146、years to come and not just rely on the status quo.The results of this fundamental management decision were not as clearly evident at first glance as,for example,the switch from DOS to Java.However,if we consider the resulting effect,the expenditure associated with it and the dimension of this change

147、 in general terms,the step that has been taken in the field of software development is probably much bigger as it gives digitalisation a powerful boost and leads to large parts of the corporate IT being transformed into the cloud.One unique feature of the CLOUD4RETAIL platform of solutions is the us

148、e of artificial intelligence to optimise decision processes involving large amounts of data.Using AIR(Artificial Intelligence for Retail),GK Software has developed the first specifically retail-oriented services based on artificial intelligence in order to optimise retail processes.This is based on

149、a self-developed AI solution,which uses processes such as machine learning and other AI methods to analyse even large amounts of data in real time and generate recommended courses of action.The CLOUD4RETAIL platform is not geared to any individual retail segment,but is equally(not industry specific)

150、suitable for all formats and segments in the retail sector,ranging from small shops to department stores,from food retailers to fashion and even specialist retailers.The architecture of the platform has been designed to be used not only with a particular type or class of device(device independence).

151、The underlying open client concept ensures that nearly all standard devices can be used on the basis of the same cloud-enabled services.They include mobile and stationary checkouts using very different hardware,scales,self-checkouts,self-scanning devices,mobile data logging devices for employees,tab

152、lets or,not least,the wide variety of consumer smartphones.The CLOUD4RETAIL platform has been designed for use in very large and widespread branch networks.It is critical for the retail business to be able to ensure that the daily operations involving thousands of devices and the central services as

153、sociated with these are not disrupted(scalable).Retailers operating internationally are faced with the additional challenge of meeting the legal and fiscal requirements that apply in each country(internationalised for more than 60 countries).Due to this complexity,only a few providers worldwide are

154、able to implement large international investment projects.Elements of the CLOUD4RETAIL platformThree essential elements form the basis of the CLOUD4RETAIL platform.The first element is the GK/Retail range of solutions,which focuses on the retailers processes ranging from the local branch to the head

155、quarters and the extensive omni-channel features.The second element is the Mobile Consumer Cloud,which is geared towards processes performed and initiated by the customer.The third segment involves power apps,which can be made available to all retailers independent of the other elements and cover sp

156、ecial requirements.GK/Retail as a transaction processor for the retail industry Starting in 2015,a fundamental new development in the range of GK solutions was launched.The first new solution that emerged from these investments was OmniPOS(POS=point of sale).The experience gained CONSOLIDATED MANAGE

157、MENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION19Annual Report 2020|GK Software SEProducts and Servicesfrom this and the basic groundwork carried out on it formed the basis for the CLOUD4RETAIL solution platform.At the time of its official launch in 2016,OmniPOS was therefore

158、far better than the preceding solution GK/Retail POS(version 12),which was already being used by most customers at that time.The idea of the fundamental architecture behind OmniPOS was to enable all functions to be used in both a modular and distributed way,both with and without user interfaces.Each

159、 function must be usable as a central service,but also as a local instance and be secure across network boundaries.At the same time,the central services must be able to handle the simultaneous operation of very many clients at a data centre or in a(private)cloud.This is the only way of guaranteeing

160、operations at thousands of checkouts,calculating prices at a web shop or safeguarding communications with a huge number of customer devices,all at the same time.The CLOUD4RETAIL platform has not only made it possible for GK Software to provide the first major enterprise-store solution entirely in th

161、e cloud,but also allows it to continue to make customised adjustments to the software at the same time.These specific characteristics for each individual retail company are just part of the industry-specific necessities being called for.The elements of the GK/Retail range of solutions include variou

162、s components such as the comprehensive omni-channel solution package OmniPOS and the data supply/removal infrastructure for large branch networks associated with it.Also included are other device-specific components,components that concentrate on certain functions such as OmniScale or Label&Poster P

163、rint,and special industry models,such as GK Drive and GK Hospitality.With retail7,the Company offers a completely new cloud product for small retailers and restaurateurs;this can be purchased on app stores and is offered purely as an SaaS product.The Mobile Consumer CloudThe Mobile Consumer Cloud is

164、 another element of the CLOUD4RETAIL platform.This combines all of the solutions that think processes from the perspective of the(mobile)customers and place these at the head of the process chain.The Mobile Consumer Cloud was based on the Mobile Consumer Assistant(MCA),which is used modularly depend

165、ing on the customers needs.Over the past years,investments have been made in the further development of the solution,allowing us to offer an extensive range of self-scanning and buy online/pick-up in store(BOPIS)products as well as other mobile application scenarios.The Mobile Consumer Cloud follows

166、 a framework approach.Retailers can use the framework and other components and integrate them into their existing apps so that they can offer self-scanning and self-payment options to consumers straight on their smartphones,for example.The Mobile Consumer Cloud works together seamlessly with the mod

167、ules of the GK/Retail range of solutions,significantly increasing its added value and thus its competitive ability.Power appsPower apps form the third segment of the CLOUD4RETAIL platform.They share the same technological basis as the GK/Retail range of solutions and the Mobile Consumer Cloud,but ca

168、n be used completely as stand-alones.Each power app is geared towards a specific retail-related topic.The main solutions are currently being used in the Deutsche Fiskal and AIR segments.All power apps are usually available as cloud solutions only in a Software-as-a-Service form.Deutsche FiskalGK Sof

169、tware has been developing a solution to meet the new tax requirements that can be summarised under the heading of“German fiscalisation of till systems”since the end of March 2019 and has put this successfully on the market through its subsidiary,DF Deutsche Fiskal GmbH.GK Software is not only provid

170、ing a cloud solution for customers of the corporate group,but for all operators of till systems through Deutsche Fiskal.As the requirements in Germany in terms of cryptography and the security architecture are more complex than in any other EU member state,an exclusive partnership has been establish

171、ed with the Bundesdruckerei(Federal Printing Office).This cooperation resulted in the development of the cloud solution by Deutsche Fiskal,while Bundesdruckerei is making the certified technical security facilities available and is hosting them at its high-security data centre.GK Software has pooled

172、 its activities related to German fiscalisation in its subsidiary known as“DF Deutsche Fiskal GmbH”.CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION20Annual Report 2020|GK Software SEProducts and ServicesAs a result of the tight timetables and the pressure on

173、 the companies involved,an order was published,which instructed the tax authorities not to challenge any infringements against the law with regard to fiscalisation before 30 September 2020.15 federal states decided to extend the non-application rule until 31 March 2021 under certain conditions.This

174、solution was able to be provided in a fully functional form to customers for test purposes as early as 1 April 2020.The system has been in regular operation since the beginning of November 2020 and has been certified.Since 1 April 2021,most customers have activated their till and register systems.Tr

175、ansactions in the high double-digit million range are made every day in real time.AIR Artificial Intelligence for RetailIn the AIR Artificial Intelligence for Retail segment,GK Software provides services based on artificial intelligence,each of which focuses on specific retail processes.Retailers ca

176、n automatically introduce many processes by using AIR ranging from dynamic pricing to personalisation and even fraud detection on the basis of machine learning and other AI methods.The major solutions in this segment concentrate on dynamic pricing and personalisation/recommendations.The AIR|Dynamic

177、Pricing module determines the fair market value for each product at any time.The AI service reduces the workload for management,optimises the price strategy and makes the best pricing decisions for the product range taking into account the respective targets(for example,more revenue or a higher marg

178、in).A number of factors are included such as competition,costs,product relationships,relationships between the various price categories and price sensitivity.The aim of the real-time solution AIR|Personalisation is to address customers current needs at any time by offering intelligent recommendation

179、s.Personalisation can be offered at a different place each time it may be on a website,a smartphone or a printed invoice in a parcel.The goal is to offer the customer a personal,relevant and positive shopping experience along each step of their customer journey,eMailBon.deAnother power app has emerg

180、ed in the retail7 segment.The slimline solution for all retailers makes it possible to issue completely digital receipts,saving cost and reducing environmental waste.GK Software solutions under the SAP brandSAP is also selling almost the entire portfolio related to the CLOUD4RETAIL platform with ide

181、ntical features using the SAP Omnichannel Point-of-Sale by GK,SAP Mobile Consumer Assistant by GK,SAP Store Inventory Management by GK,SAP Pricing by GK and SAP Frictionless Checkout by GK product names.Ongoing product developmentIn 2020,investments were made in the further development of CLOUD4RETA

182、IL and the associated services of the GK/Retail range of solutions as well as in the Mobile Consumer Cloud and the power apps.The solutions sold by SAP have once again successfully completed the premium qualification process.New products and functions are checked by SAP as part of this kind of produ

183、ct test and in each case the current version is approved for sale.GetMyGoods has also been developed as a BOPIS solution(buy online pick-up in store)and made available in the market.“emailbon”has given the market a slim solution to prevent the printing of paper receipts.In the Deutsche Fiskal segmen

184、t,the Fiskal Cloud solution was adapted to meet the new changes in requirements dictated by the BSI(Federal Office for Information Security)and the Fiskal Cloud Archiv solution was developed.Other solutions in the portfolioPayment servicesIn the field of payment services,GK Software,in our view,offe

185、rs a market-leading solution for handling payments in the USA in the form of TransAction+and it is able to integrate a large number of point-of-sale systems and a large range of payment authorisation providers.It meets the highest data protection standards and supports credit and debit cards and gif

186、t vouchers,“electronic benefits”as well as handling cheque authorisation and accounting for payment providers in the USA.The software controls the payment devices in the branches and makes it possible CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION21Annual R

187、eport 2020|GK Software SEProducts and Servicesfor retailers to significantly reduce their costs.The transition to cloud technology is currently in progress,meaning that this solution will become a power app in future.The euroSUITE solution from AWEKGK Software develops and markets a solution for med

188、ium-sized retailers known as euroSUITE through its subsidiary,AWEK microdata GmbH,for customers in German-speaking countries and it complements the GKSoftware range.The SQRS software packageWhen acquiring the assets of the former company Solquest GmbH,its range of solutions,Solquest Retail Solutions

189、(SQRS),was also taken over and is still being used by one customer.Developing and adapting softwareIn addition to its products,GKSoftware also provides comprehensive software services.The most important component in this context involves customising and adapting software developments during the init

190、ial projects and subsequently introducing change requests,which are a permanent feature of most projects.They include,for example,adapting software that is already in productive use to broader customer requirements,such as integrating new bonus systems in the checkout environment.Classic issues like

191、 consulting,project management or training courses come under the heading of developing and adapting software too.Maintenance and servicesIn addition to software maintenance that is subject to charges,where the aim is to eliminate errors and faults,GK Software offers other services to the retail tra

192、de.A customer care management department has been established as part of focusing the Companys software service portfolio;it supports existing customers in a wide variety of tasks related to operating and adapting the solutions that they use.A special services department has also been made available

193、 to customers to help them continually optimise their productive applications and the way that they interact.Partner trainingThe GK Academy is responsible for qualifying implementation partners and customer employees as well as training GK Software workers.The Group is also training implementation p

194、artners in 2020,which can then introduce CLOUD4RETAIL on their own.CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER INFORMATION22Annual Report 2020|GK Software SENew customers acquired in 2020New customers acquired in 2020GK Software and its subsidiaries oversee a total

195、of more than 440 customers.A distinction must be made between projects that apply the core solution,which run today under CLOUD4RETAIL,and were primarily sold under the name OmniPOS or GK 12 until 2019.This segment also includes projects that were sold by SAP under the SAP brand,but in most cases ar

196、e still implemented and overseen by GK Software.The core solutions segment covers all major and long-term projects.Overall,i.e.,not only directly,but also in cooperation with SAP,GK Software oversees in this segment 115 mainly large and medium-sized customers on all continents and in many different

197、branches of industry.SAP also sells a central solution for pricing and promotion,which was developed by GK,directly and solely under its own brand.Taking into account this pricing engine,SAP and GK Software share more than 140 customers.Other customers are being supported by prudsys,the US company,A

198、WEK and Deutsche Fiskal.The AI solutions offered by prudsys and the US companys payment solution TransAction+are each being used by more than 50 customers.Some of the solutions offered by Deutsche Fiskal are being used by the same customers that use the core solutions.Many other retailers and partne

199、rs have opted to use them as well.The majority of the Companys customers are retailers,with a focus on large,internationally leading companies.Of the Global TOP 50 retailers alone,GK Software counts 12 among its customers.In the reporting period,the Group won 14 new projects for CLOUD4RETAIL(includi

200、ng three existing customers who are switching to the platform),and acquired four new customers for prudsys,two new customers for the euroSUITE solution and a high three-digit number of new customers for Deutsche Fiskal.In most cases,the name of the customer is to be kept secret until the roll-out is

201、 completed.Below is a selection of the new projects won in 2020:hagebau/leading DIY chain(1,700 branches in eight countries)Leading supermarket operator(around 1,150 branches in France)Food discounter(around 700 branches in two countries)Canadas largest consumer electronics chain(around 390 branches

202、 in Canada)Leading South-African pharmaceutical company(more than 167 branches in three countries)Supermarket operator(around 290 branches in Germany)Pharmacy chain(220 branches in Bulgaria)New Zealands largest DIY chain(125 branches in New Zealand)Supermarket operator(around 40 branches in Egypt)Fa

203、shion retailer(32 stores in the US)Food discounter(around 32 branches in Chile)DIY store/garden centre(AWEK euroSUITE around 70 branches in Germany)Shopping centre(AWEK euroSUITE 1 location in Germany)BADER/mail-order company(AIR|Personalisation)Bodyshop/cosmetics retailer(AIR|Personalisation)Brands

204、4Friends/online fashion/lifestyle-club(AIR|Dynamic Pricing)Textile manufacturer(AIR|Personalisation)Besides the new projects,revenue was generated in most of the ongoing projects through the platform or smart extensions.CONSOLIDATED MANAGEMENT REPORTTO THE SHAREHOLDERSCONSOLIDATED ACCOUNTSFURTHER IN

205、FORMATION23Annual Report 2020|GK Software SE Andr HergertChief Financial OfficerConsolidated Management Report24 Consolidated Management Report24 The Companys Business Model30 Economic report32 Explanation of the business results and an analysis of the assets,financialandearningssituation40Reportont

206、heRisksandOpportunitiesfortheGKSoftwareGroup40 Opportunities 41 Risks45 Overall risk position46 Internal monitoring and risk management systems with regard to the Groups accounting process47Riskreportinginrelationtotheuseoffinancialinstruments48 Forecast report 48 Market environment49 Company outloo

207、k50 General statement for 202151 Remuneration report53 Takeover-relevant information in accordance withSection315aHGB55 Corporate Governance Report55Informationonseparatenon-financialreport55 Information on female quota and diversity concept55 Corporate governance statement(Section 289f,Section 315d

208、 HGB)TO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION24Annual Report 2020|GK Software SEConsolidated Management ReportConsolidated Management ReportThe Companys Business ModelSubject matter and purposeGK Software SE1 is one of the worlds leading technology co

209、mpanies for retail sector software with a special focus on solutions for large and very large retail companies with many local stores.GK Software SE and its predecessor company,G&K Datensysteme GmbH,which was founded in 1990 by Rainer Glss and Stephan Kronmller and changed its name to GK Software AG

210、 in 2001,have been successfully operating in the marketplace for over 30 years.The Companys flotation took place in the Prime Standard segment of the Frankfurt Stock Exchange in 2008.GK Software AG was transformed into GK Software SE on 19 January 2018.Group structure and holdingsIn principle,the Gr

211、oup companies can be divided into three groups.While some subsidiaries undertake sales services and support customers in the further development of the standard SW platforms used in various international regions,others are responsible 1 The expression GK Software always refers to the corporate Group

212、 in the following text.“The Company”is also used as a synonym for this.When GKSoftware SE is used,this exclusively refers to the individual company.for the development and sale of special product components of the GK Software Groups overall offering,or undertake development work within the Group wit

213、hout having direct market relationships.All subsidiaries are wholly owned by GK Software SE.The sole exception is prudsys AG,in which GK Software SE holds more than 80 percent of the shares.The Groups headquarters have been located in Schneck/Vogtl.since it was founded.Alongside its administration d

214、epartment,the product development department,project management and third-level support facilities are all based at this site.GKSoftware SE also has a business site in Berlin which is primarily responsible for the marketing,sales and partner activities;parts of the software development work are also

215、 based there.The branch in Jena started operating in 2018 so that the Company can benefit from the excellent opportunities for gaining personnel in this high-tech region in the state of Thuringia.There are also other sites located in St.Ingbert,Cologne,Hamburg and Chemnitz.GK Softwares core solution

216、 is our CLOUD4RETAIL platform,which is marketed outside the European Union by three companies.The largest of these companies is GK Software USA,Inc.,founded in December 2013,which takes charge of CLOUD4RETAIL sales in North and South America and at the same time is responsible for specific solutions

217、 for the US market such as our Payment solution or the US version for the standard supplementary solution GK Drive.A Member of the GK Software GroupA Member of the GK Software Group100%100%100%100%100%100%100%100%100%80.12%GK Software USA Inc.GK Software SEOOO GK Software RUSGK Software Africa PTY L

218、td.Storeweaver GmbHEUROSOFTWARE s.r.o.TOV Eurosoftware-UA100%Retail7 GmbHAWEK Microdata GmbHAWEK GmbHprudsys AGDF Deutsche Fiskal GmbHTO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION25Annual Report 2020|GK Software SEConsolidated Management ReportGK Software

219、Africa(Pty)Ltd.in South Africa has been performing these activities for CLOUD4RETAIL since 2015.There is also a corresponding company in Russia,namely OOO GK Software RUS.GKSoftware SE has another wholly owned subsidiary in Dbendorf in Switzerland called StoreWeaver GmbH,which takes care of the Grou

220、ps Swiss-based clients.StoreWeaver GmbH also has a German branch in St.Ingbert in the German state of Saarland.This branch supports the customers who use our SQRS solution(Solquest Retail Solutions)and who are to gradually be accompanied in CLOUD4RETAIL.Supplementary solutions(so-called“power apps”)

221、to CLOUD4RETAIL are developed by prudsys AG,Chemnitz,and DF Deutsche Fiskal GmbH,Berlin.Prudsys AG,in which GK Software SE holds more than 80 percent of the shares,develops the Groups solutions,which are based on the application of artificial intelligence methods and are connected via the platform c

222、oncept AIR(Artificial Intelligence for Retail),a so-called“power app”,according to customer requirements.With the Fiskal Cloud,DF Deutsche Fiskal GmbH offers a cloud-based core solution to automatically satisfy the requirements of the legislation on so-called German fiscalisation.The subsidiaries th

223、at take care of software development and research and development exclusively on behalf of the Group form an essential part of the corporate Group.Plzen,Czech Republic,for example,has been the Groups second-largest location for more than 20 years.The subsidiary company Eurosoftware s.r.o.,which is l

224、ocated there,carries out the essential parts of the CLOUD4RETAIL product development,as well as research and development work.This is complemented by the development of enhancements to the platform(so-called extensions)for the Groups customers.Since the beginning of 2016,TOV Eurosoftware-UA in Lviv

225、has also been working on developing platform extensions.AWEK GmbH,which focuses on providing services,is also a wholly owned subsidiary.It has its headquarters in Hamburg.AWEK Microdata GmbH,which is also wholly-owned,is based in Hamburg and has a business site in Bielefeld,specialises in the ongoin

226、g development of the euroSUITE checkout software for smaller and medium-sized enterprises and it looks after the installations where this software is in use.AWEK GmbH and AWEK microdata GmbH together form the IT Services division within the Group.Berlin is also home to the subsidiary retail7 GmbH,fo

227、unded in 2020,which develops and sells a cloud solution for small retailers in a wide range of industries,the marketing of which is set to begin in 2021.The Management Board of GK Software SE consists of the company founder Rainer Glss(CEO,Strategy,Marketing&Sales)and Andr Hergert(Finances).The Mana

228、gement Board is supported by a Group Management Board,which consisted of the following members in 2020:Michael Jaszczyk(CEO of USA,with responsibility for North and South America),Harald Gbel(Senior Vice-President at GK Software SE,with responsibility for Europe,the Middle East and Africa)and Michae

229、l Scheibner(Chief Strategy Officer).The three-member Supervisory Board at GK Software SE was led by the Chair,Uwe Ludwig,until 11 March 2020.He had been a member of the Supervisory Board since 2001 and had to retire from his position at this time for health reasons.In response to an application by t

230、he Companys Management Board,Chemnitz Local Court appointed Dr Philip Reimann as a member of the Supervisory Board and its Chair on 24 March.The 2020 ordinary shareholders meeting confirmed Dr Reimann in this position until the shareholders meeting in 2024.Thomas Bleier was elected to the Supervisor

231、y Board in 2003.His period in office was confirmed until the annual shareholders meeting in 2022 at the annual shareholders meeting in 2018.Herbert Zinn was first elected to the Supervisory Board at the annual shareholders meeting in 2011.His current period in office ends with the annual shareholder

232、s meeting in 2023.Control parameters for the GroupManagement of the Group is largely determined by two control parameters:turnover and revenue;two main elements are largely used to determine the latter:earnings before interest and taxes(EBIT)and earnings before interest taxes depreciation and amorti

233、sation(EBITDA)as well as the relationship between these two revenue factors and turnover(operating performance).Alongside these two group control parameters,we continue to use the margin of gross profits on turnover.We view gross profits as the surplus achieved by turnover for services purchased fro

234、m third parties,TO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION26Annual Report 2020|GK Software SEConsolidated Management Reportsemi-finished products and goods,which are used to directly provide this turnover,in order to be able to view the effect and degre

235、e of outside services on the turnover that is achieved.This system of key performance indicators,which is geared towards earnings capacity,is accompanied by KPIs,which deal with the funding for the group.The issue here is the ability of the Group to be able to service its financial obligations at an

236、y time,both in the long and short term.The key performance indicators used here concern the equity ratio and the capitalisation ratio in different variants as a measure of matching the maturities of assets and the capital used to fund them.Another major aspect concerns the Groups ability to be able

237、to make use of investment opportunities that arise at very short notice.A central KPI here is the surplus of cash and cash equivalents over interest-bearing liabilities.Depending on the goal of the approach,there are variants for this KPI too.Personnel 1,162 people in all were employed within the Gr

238、oup on the reporting date of 31 December 2020(excluding members of the Management Board and trainees).This means that six fewer people were employed than on the previous years reporting date(1,168)1 and seven fewer than at the end of the first half of 2020.A large number of the Groups employees,383,

239、(400 in the previous year),continue to work at the business 1 Number of employees,not including trainees and studentssite in Schneck.The Berlin branch of GK Software SE currently has 66 employees working in the sales&marketing,project and partner management and development fields(the figure was 96 i

240、n the previous year).The number of people employed at the Czech subsidiary Eurosoftware s.r.o in Plzen dropped slightly to 244(as against 245 in the previous year).77 Group employees were employed in Hamburg at the end of the year(previous year:80).The number of mobile service technicians,in particu

241、lar,was reduced according to plan.26 people were employed at the second IT Services site in Bielefeld(30 in the previous year)and they mainly work on software development.111 people were working at the business site in St.Ingbert at the end of the year(previous year:117).4 people were working in Dbe

242、ndorf at this time,one fewer than twelve months ago.The number of employees working at the branch in Cologne on the reporting date was 16,as against 21 at the end of the 2019 financial year.97 people were working for GK Software in the USA(2019:86).The South African subsidiary employed 31 people on

243、the reporting date(24 in 2019).The number of people employed at TOV Eurosoftware UA in Lviv has risen from 18 to 28 since the end of 2019.Prudsys AG in Chemnitz employed 45 people on the reporting date,compared to 51 at the same time in the previous year.The Group pools its expertise in the field of

244、 artificial intelligence at this business site.Huge investments have been made in training and developing employees for years in order to be able to provide a foundation for and boost growth in turnover at GKSoftware from a human resources point of view too.Most of our employees for example attended

245、 training courses at the GK Academy in 2020(some of them on more than one occasion).New employees Schneck-33.1%Berlin-5.7%Hamburg-6.6%St.Ingbert-9.6%Chemnitz-3.9%Cologne-1.4%Jena-2.0%Bielefeld-2.2%Czech Republic-21.1%Ukraine-2.4%Russia-0.2%Other EuropeanCountries-0.8%South Africa-2.7%USA-8.4%TO THE

246、SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION27Annual Report 2020|GK Software SEConsolidated Management Reportundergo extensive and standardised introductory courses,while a permanently adapted training programme is made available to all employees too.The range o

247、f online training courses has also been extended,and this increases the potential number of those attending them.The Company is also actively involved in training new or future employees.They include trainees on apprenticeship courses,students from universities of cooperative education or students o

248、n sandwich courses.These different measures are already providing the first success stories in attracting new employees and the aim is to further intensify them in future.T.04 Change in employee structure31.12.202031.12.2019Changein%Schneck383400(4.3)Berlin6696(31.3)Hamburg7789(13.5)St.Ingbert111117

249、(5.1)Chemnitz4552(13.5)Cologne1621(23.8)Jena231827.8Bielefeld2630(13.3)Czech Republic244245(0.4)Ukraine281855.6Switzerland45(20.0)Total11621209(3.9)31.12.202031.12.2019Changein%Russia21100.0Other European countries9728.6South Africa312429.2USA978612.8Total11621209(3.9)The GK Software Business ModelG

250、K Software essentially sells software and services to retail companies.A distinction must be made here between the CLOUD4RETAIL core business and the IT services,which are not counted as such.The CLOUD4RETAIL business can be further differentiated according to the structure of this software platform

251、 into the central process control GK/Retail world of solutions(includes all processes for controlling a retailers branch processes as well as their integration with the retailers e-commerce activities)and the power apps,which serve to automate the process landscape(of subordinate processes as well a

252、s for the automation and optimisation of central tasks,such as the pricing of the goods offered).These two blocks are complemented by a product that enables retailers to enter into direct contact with their customers,the end consumers,but also allowing the latter to influence the initiation,the proc

253、ess and the conclusion of trade transactions(Mobile Consumer Cloud).Core business CLOUD4RETAILIn the CLOUD4RETAIL sector,sales are generated primarily by the transfer of use of standard software platforms,the special development of software enhancements at the customers request(so-called“extensions”

254、)and services related to the introduction of the software platforms and their operation.The solution is completely designed for operation in the cloud,but can be operated in a private,hybrid or public cloud at the customers choice.Revenue from software arises either from the collection of fees from

255、the granting of licences for an unlimited period of time(so-called“perpetual licences”)or from subscription agreements that limit the granting of use to a certain period of time.The fees for perpetual licences are paid in one lump sum.For the subscriptions,payments are usually agreed in equal amount

256、s over the period of use,with a minimum payment agreed for the period following the introduction of the application.Where GK Software also takes over the operation of the applications,the entire solution is made available as software as a service(SaaS)and remunerated through a correspondingly increa

257、sed subscription price.CLOUD4RETAIL is a platform1 consisting of various solution components that customers select according to their needs and priorities.At the core of this 1 For components of the CLOUD4RETAIL platform see the Products and Services section above.TO THE SHAREHOLDERSCONSOLIDATED MAN

258、AGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION28Annual Report 2020|GK Software SEConsolidated Management Reportplatform,which is geared towards the needs of medium and large retailers,is an application suite that brings together the retailers processes.Examples of this platform core the GK/R

259、etail portfolio of solutions are the processes for cash registers,scales,store merchandise management including the associated infrastructure,and the management and monitoring functions.Also part of the CLOUD4RETAIL sector is the Mobile Consumer Assistant(MCA)solution,which enables direct communicat

260、ion between the customer and the retailer,but also offers the customer the possibility,as required,to initiate(Click&Collect),continue and also complete(e.g.through offerings such as Scan&Co)the retail processes that are offered in the GK/RETAIL portfolio of solutions.Implementation takes place with

261、 apps branded to the retailer,which end consumers keep available on their mobile devices.To accommodate the retailers many ideas,CLOUD4RETAIL is designed as a standard platform that can be quickly adapted to new situations.This is all the more relevant when applications like CLOUD4RETAIL are used ov

262、er longer periods of time.CLOUD4RETAIL has therefore been especially designed with this need in mind and allows for a quick enhancement of the solutions through extensions.It is necessary to distinguish between extensions that are relevant for the customer on a permanent basis,which as platform exte

263、nsions are linked with maintenance contracts that guarantee the release capability of the extension even over long release cycles,and smart extensions that are only of temporary importance for the customer.In the past,we have observed that the sales for these services maintain a very constant level

264、and represent a reliable foundation for sales expectations in the coming years.CLOUD4RETAIL contracts based on perpetual licences also generate a permanent revenue stream through maintenance services.These maintenance services result as a fraction of the remuneration for the right of use and are pay

265、able for the duration of the use of the respective platform.These maintenance services are included in the subscription payments in the SaaS contracts.Due to the customary project size,implementation support is always necessary when implementing the project,generating consulting revenue.The normal c

266、ourse of the project therefore usually consists of an initial project,after the successful completion of which the customer can roll out the solution.Even during the initial project,but especially afterwards,additional or new requirements(smart or platform extensions)arise to extend the solution.The

267、se main groups are complemented by the power apps.By these means,further process steps that do not belong to the immediate core of the branch processes can be presented,or main processes can be automated or optimised.The Deutsche Fiskal solutions constitute one block of these power apps.Deutsche Fis

268、kal offers its services exclusively as software as a service.The Fiskal Cloud solution based on the CLOUD4RETAIL platform offers as a service the generation and storage of the legally required electronic signature as well as the associated storage of various receipt-related transactions.Other manage

269、ment and monitoring functions are also available to the customers.Fiskal Cloud Archiv is likewise a pure SaaS offering,enabling the storage and provision of the data required by the tax authorities in the prescribed format.Another solution of this kind is the emailbon product,for example,which satis

270、fies the obligation to provide a receipt entailed by the legal regulations.CLOUD4RETAIL provides AI solutions for the automation and optimisation of the main trading processes.These are developed by prudsys AG and are offered to brick-and-mortar retailers under the AIR(Artificial Intelligence for Re

271、tail)brand as part of the CLOUD4RETAIL platform.The prudsys brand continues to be used for pure e-commerce.The solutions from the AIR platform are also mostly positioned as SaaS offerings and flanked by advisory and introductory offers.Transaction+GK Software USA offers the Transaction+solution excl

272、usively in the USA.Up to now,this has been sold in the classic licensing business,for which maintenance is incurred accordingly.On top of this comes regular extension business that also requires maintenance as an extension of the licence.The USA organisation is currently working on converting the so

273、lution so that it can be offered as software as a service in the future,and thus be integrated as a power app in CLOUD4RETAIL.TO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION29Annual Report 2020|GK Software SEConsolidated Management Reportretail7retail7 GmbH

274、has developed a completely new solution for small and micro retailers,with a market launch planned for 2021.It is expected to generate SaaS revenue only,as no individual changes to the solution are planned for individual customers.retail7 GmbH has also developed the emailbon.de solution,which is als

275、o sold by GK Software.GK AcademyGK Academy generates sales through the sale of training and the provision of certification.AWEK IT ServicesAWEK GmbH offers services for the trade sector primarily in the area of hardware and on-site maintenance.This business has been in decline for several years now

276、and no new clients are being sought as this service is being discontinued.AWEK microdata GmbH develops and sells the euroSUITE branch solution for medium-sized retailers.Sales are generated here from licences,maintenance work,customisation and associated software-related services.AWEK and AWEK micro

277、data together form the IT Services division.Sales via partnersThe most important partner generating sales for GK Software is SAP,which sells a significant part of the CLOUD4RETAIL platform under its own brand.A corresponding agreement on the sharing of licence and maintenance revenues exists in this

278、 connection.In addition,there are implementation partners who purchase services from GK Software that they cannot provide themselves.Research and development GK Software has always focused on the ongoing development of existing products and the development of new software solutions during the past f

279、inancial years and they will be strategic competitive factors in the future too.This is also reflected in the significant number of employees working in this field.GK Software is continually investing in research and development in order to maintain its leading technological position in the long ter

280、m too.A distinction needs to be made here between applied research,which is handled by its own innovation and research teams,and application-oriented product development.The expenditure for research amounted to EUR1.66 million in 2020.The research teams are based at several of the Groups business si

281、tes.Application-related“product development work”is primarily conducted in Germany and the Czech Republic.Overall,about EUR15.95 million was spent on this work during the past year.Overall,GK Software spent EUR17.60 million on research and development work during the 2020 financial year,which corres

282、ponds to about 14%of the Groups sales.TO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION30Annual Report 2020|GK Software SEConsolidated Management ReportEconomic reportGeneral economic and industry-related conditionsBusiness developments at GKSoftware are deter

283、mined by several factors and their effects in different economic regions.The most important determining factors are the general economic conditions,the current situation and the expected business prospects for the retail sector.With GKSoftwares business expansion into more and more economic areas,it

284、 goes without saying that the number of factors affecting its business have increased,as the situation in some individual markets may move in different directions in spite of global economic trends.However,this provides at least a partial detachment in the Companys general operations from the develo

285、pments in its original core markets primarily in Central Europe without these markets losing their significance for GKSoftware.The Company is now in a position to be able to routinely compensate for low revenue or a total lack of revenue from licence agreements in Germany,Austria and Switzerland wit

286、h revenue from other regions.2020 has deviated from normal trends in many ways due to the global pandemic.It has become apparent that the companys business has been less affected than originally feared,because GKs customers are generally large to very large organisations that also pursue long-term p

287、lans regarding their IT.In addition,the large proportion of customers from the food and DIY sectors has provided stability.At the same time,GK Software was able to expand further into new geographical markets in the past financial year,with the result that dependencies on the original home market in

288、 the region of Germany,Austria and Switzerland have been further reduced.Global economic output declined by a total of-3.5 percent in 2020.According to the IMF,emerging and developing countries were less affected(2.4 percent)than the industrialised nations,which recorded a decline of-4.9 per cent.Th

289、ere were also considerable differences between the individual states.The US economy shrank by-3.4 percent in 2020,while the euro area economy was down by-7.2 percent.In Germany,the decline amounted to 5.4 percent1.In parallel with the basic economic trends in the markets served directly or through s

290、ales partners,the general trends in the retail sector are also an extremely important factor influencing the Companys business.The issue of omni-channel retailing continues to be a major area of focus,as it is exerting a huge influence on retailers strategic decisions in all markets.Beyond this,the

291、introduction of genuine cloud services based on enterprise POS solutions is becoming increasingly important for all sizes of retailers.Long-term issues like demographic developments,new ways of establishing customer loyalty or internationalisation also remain important driving forces and are becomin

292、g more 1 https:/www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economic-outlook-update(preliminary estimates)and more connected to the mega-trend of omni-channel retailing.GK Software responded to these priorities in the retail sector at an early stage and made significant preparations

293、 for the future through OmniPOS.The CLOUD4RETAIL cloud platform and the Mobile Customer Assistant customer loyalty solution are further strengthening the Companys competitive position.We are also expecting the same effect from integrating solutions on the basis of artificial intelligence.We are also

294、 addressing the fuel station and smaller retailer market segments with our new solutions known as GK Drive and retail7.Even though the licensing business in 2020 was again strongly powered by customers from outside the German-speaking countries,the developments in Germany,Austria and Switzerland con

295、tinue to remain very significant for the direct business of GK Software,as this is an internationally leading market in the sector and many existing customers have their headquarters there.The German retail trade,Europes largest single market,experienced very varied trends in 2020 depending on the s

296、ector.Overall,the retail sector(excluding motor vehicles,fuels stations,fuels and pharmacies)turned over around EUR577.0 billion in 2020,an increase of 5.7 percent.While it was a good year for sectors such as online retail and food and furniture and DIY stores did better than expected others,such as

297、 clothing,footwear,textiles and leather goods,lost-23 percent of their sales compared with the previous year2.This will almost certainly also be 2 https:/einzelhandel.de/presse/aktuellemeldungen/13150-einzelhandel-erlebt-2020-jahr-der-extreme-coronakrise-bringt-viele-haendler-an-den-rand-der-insolve

298、nz preliminary estimateTO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION31Annual Report 2020|GK Software SEConsolidated Management Reportreflected in the willingness of these parts of the trade to invest.In a scenario for 2021 with trade opening up in May,the

299、trade association expects-6 percent for the retail sector as a whole.1 After a sustained upward trend,a downturn could also be observed overall for the entire European retail sector in 2020.2 In the UK,however,sales continued to rise despite the weakness of the pound in connection with Brexit.In 202

300、0,retail sales here reached GBP 402.5 billion,up 2.2 percent on the previous year.3 Similarly,in the USA,a continuous upward trend in retail sales has been observed in recent years,which has caused more movement in the worlds largest retail market.4 At USD 4.1 trillion,retail sales there exceeded th

301、e previous years high of USD 3.8 trillion.5E-commerce is also continuing its lively development.This division again increased its sales by 14.6 percent to around EUR83.3 billion.This trend is expected to continue in 2021.According to initial estimates,online purchases will surpass the EUR100 billion

302、 mark for the first time this year.6 This trend is even clearer in other important,leading retail markets like the United Kingdom.However,it is not yet observable to the same degree everywhere.While the share of online retail trade amounts to 10.5 percent of total retail sales in 1 https:/einzelhand

303、el.de/images/presse/Pressekonferenz/2021/JahresPK/Charts.pdf2 http:/appsso.eurostat.ec.europa.eu/nui/show.do?dataset=sts_trtu_a&lang=en3 https:/www.ons.gov.uk/businessindustryandtrade/retailindustry/datasets/poundsdatatotalretailsales4 http:/ https:/ https:/www.bevh.org/presse/pressemitteilungen/det

304、ails/e-commerce-beschleunigt-wachstum-deutlich-auf-mehr-als-83-mrd-euro-warenumsatz-in-2020-bevh-forde.htmlthe USA7,the figure was only 6.0 percent in Italy,for example.8It is generally assumed,however,that online retail sales will continue to grow in all developed retail markets.9The omni-channel r

305、etailers continued to grow disproportionately in 2020,increasing their sales by 8.7 percent to around EUR28.0 billion.This means that brick-and-mortar retailers,who have also mastered their e-commerce business,are increasingly able to leverage the advantages of combining a branch and web shop.10 GK

306、Software has been preparing its solutions for this development by moving in the direction of successful omni-channel retailing for years and therefore believes that it is in an excellent position to meet the relevant demands.These unabated developments are triggering huge challenges for the in-store

307、 retail sector and the challenges are also being driven by other innovations.General assessment of the course of business For the 2020 financial year,the Management Board adjusted the long-term forecast,which was originally to apply until the end of the year due to the unclear situation owing to COV

308、ID-19,in the Annual Report.The new expectation for the 2020 financial year was that sales should be slightly expanded compared with the 7 https:/ https:/www.retailresearch.org/online-retail.html(2020 estimated;figures for Germany vary according to source)9 https:/ https:/www.bevh.org/fileadmin/conte

309、nt/05_presse/Auszuege_Studien_Interaktiver_Handel/Inhaltsverzeichnis_fu_r_bevh_Gesamtbericht_Interaktiver_Handel_in_Deutschland_2020.pdf,p.5previous year,but that EBIT should be significantly improved year on year.This adjusted forecast was fully met.The 2020 financial year indeed saw lower growth c

310、ompared with the previous year within the Group on account of various factors.However,the earnings situation improved significantly.Group sales increased by 1.8 percent,or EUR2.1 million,in the consolidated accounts,with sales in our core segment of the“CLOUD4RETAIL”cloud offering for the retail sec

311、tor rising by EUR3.46 million,or just over 3 percent.With new customers around the globe,the undiminished attractiveness of our solution portfolio was once again proven.The development of our activities on the American continent also continued the positive trend that had begun in 2018.Here,sales ros

312、e disproportionately year on year by 19 percent to almost EUR21 million.Even under 2020s more difficult conditions,this region was able to make a positive earnings contribution to the Groups business development.Earnings before interest,taxes,depreciation and amortisation(EBITDA)amounted to EUR19.08

313、 million,compared to EUR12.26 million in the previous year,and were thus 55.7 percent higher year on year.Earnings before interest and taxes(EBIT)reached EUR10.54 million and were EUR7.10 million higher than the previous years figure of EUR3.43 million,thus almost tripling.In summary,the 2020 target

314、s were fully achieved.TO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION32Annual Report 2020|GK Software SEConsolidated Management ReportDevelopments in new and existing business GK Softwares customers come from almost all areas of the retail sector and are dis

315、tributed around the globe.The important market sectors,where the Company is active,are primarily the food retail sector,pharmacy&household goods,fashion&lifestyle.DIY&furniture markets or technology&cars.The products and services are mainly geared towards large and medium-sized enterprises and are p

316、articularly suitable for customers with many stores in several countries.In total,GK Software supports several hundred customers of various sizes who either use or are preparing the use of solutions from the different sectors of the Group.During the reporting period,the Group was able to acquire 11

317、new customers for the core solutions in the CLOUD4Retail sector,as well as others for the prudsys AI solutions and the AWEK Microdata euroSUITE solution.A new feature in 2020 was the acquisition of numerous customers for the Deutsche Fiskal solutions,most of whom,however,will only make a visible con

318、tribution to sales from 2021 onwards.In this area,only SaaS contracts were concluded.SaaS contracts were concluded for the first time in the CLOUD4RETAIL sector in 2020.Deutsche Fiskal was able to acquire well over 100 customers and by April 2021 had already launched cash register and recording syst

319、ems in the six-figure range.In the area of existing customers,2020 was also characterised by extensive new orders,pilot starts and rollouts in several projects and an intensive change request business.Our core solutions were successfully rolled out to additional customers from different trading segm

320、ents and successfully went live in new countries.The first roll-out of our fuel station solution to the first customer in the USA was particularly important in this respect.SAP and GK Software further intensified their partnership again in 2020,and some of the new customers in the CLOUD4RETAIL secto

321、r are joint customers with SAP.Explanation of the business results and an analysis of the assets,financial and earnings situation2020 saw a further expansion of GK Softwares business.With sales of EUR117.56 million,the previous years figure of EUR115.45 million was moderately exceeded,as had been pr

322、ojected.Our core business with the CLOUD4RETAIL cloud offering contributed disproportionately to this,increasing by EUR3.46 million to EUR110.53 million.The IT Services business segment declined as expected and generated sales of EUR7.02 million in 2020,EUR1.28 million less than in the previous year

323、.Sales of our euroSUITE solution for small and medium-sized retailers were habitually stable,once again reaching the previous years level of EUR4.00 million.The balance of the development of sales and operating costs(i.e.costs excluding depreciation and amortisation)of EUR6.82 million led to an incr

324、ease in EBITDA from EUR12.26 million to EUR19.08 million.At EUR10.54 million,EBIT was EUR7.10 million higher than in 2020.With the financial result remaining negative(EUR1.44 million after EUR2.20 million),earnings before taxes(EBT)were EUR9.09 million(previous year EUR1.23 million).Against this com

325、e tax expenses totalling EUR2.82 million,resulting in annual net income of EUR6.27 million.TO THE SHAREHOLDERSCONSOLIDATED MANAGEMENT REPORTCONSOLIDATED ACCOUNTSFURTHER INFORMATION33Annual Report 2020|GK Software SEConsolidated Management ReportT.05 Total operating revenues31.12.202031.12.2019Change

326、EUR K in%EUR K in%EUR K in%Sales117,56095.8115,44896.82,1121.8Operating revenues118,39196.5115,44896.82,9432.6Other operating revenues4,2973.53,8373.246012.0Total operating revenues122,688 100.0119,285 100.03,4032.9Earnings situation Sales at 117.56 million euros EBITDA at 19.08 million eurosTotal G

327、roup sales rose by almost 1.83 percent from EUR115.45 million to EUR117.56 million.The Groups cloud offering,combined in the CLOUD4RETAIL segment,reported an increase of 3.2 percent,with sales of EUR110.53 million.If the EUR6.73 million in non-period income included in the previous year is taken int

328、o account,the pro-forma increase is even slightly more than 10 percent.For the IT Service business segment,the expected decline in sales generated within the area of Hardware Services materialised as a result of our intention to discontinue active operation of this business unit.As planned,sales her

329、e fell further from EUR8.37 million to EUR7.02 million.This fall was exclusively due to the hardware services.Our euroSUITE software solution,which is operated in this segment,was able to keep its sales almost constant compared with the previous year at a total of EUR4.00 million(2019=EUR4.03 millio

330、n).In the case of the Hardware Services sub-segment,we expect this business to cease when the last customer contracts expire at the end of the first quarter of 2022.This development has consequently led to a further shift in the relative significance of the two segments.As a result,over 94 percent o

331、f the Group sales are now generated with the cloud offering CLOUD4RETAIL,while the remaining just under 6 percent is attributable to IT Services.Looking first at CLOUD4RETAIL,the first thing to note is that software-related sales rose from EUR62.04 million to EUR73.81 million,an increase of 19.0 per

332、cent,or almost one fifth.The shift towards SaaS demand that occurred in 2020(three of the eleven new CLOUD4RETAIL customers and one existing customer directly concluded contracts for the provision of software as a service SaaS)is not yet noticeable in the 2020 sales figures.These contracts have term

333、s of three to ten years and a contract value(volume over the contract term,order value or TCV total contract volume)of approximately EUR1315 million.This also applies to the contracts concluded with more than 100 customers during 2020 to meet the requirements of the German“Kassensicherungsverordnung”legislation on electronic recording and security systems(fiscalisation),the contract value of which