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Wednesday, February 23, 2005
gedas Logs Highest Profits in its History at 13.7 Million Euros
Berlin, 23 February 2005 – The IT service provider gedas managed to increase its profits further in fiscal 2004, in spite of a difficult market situation. Its earnings before taxes rose about 25% over the previous year, from 11 million euros in 2003 to 13.7 million euros in 2004, thus marking a historic peak. This increase in profits was mainly the result of the company’s focus on strategic markets as well as its consistent implementation of measures needed to cut costs and improve processes.

Sales remained almost stable, at 567 million euros (previous year: 576 million euros). The ForMotion program of VW, the parent company, exerted even more price pressure and resulted in less money being invested in information technology. The resulting drop in turnover was cushioned, but not fully offset, by the increase in sales in the external market by 9% over the previous year, to 176 million euros. Investments in the amount of about 30 million euros were fully funded from the cash flow of current business activities.

As of 31 December 2004, the company had 4,930 employees worldwide—a plus of 3.8% over 2003, when 4,751 people had worked for the gedas Group. In Germany, the company had 1,397 employees at the end of last year (including the German employees of gedas AG), with 478 of them working in Berlin and 416 in Wolfsburg.

An overview of the leading indicators

2003

2004

Change in %

Sales

576 million euros

567 million euros

–1.6%

of which in the external market

162 million euros

176 million euros

+8.6%

Results before Taxes

11.0 million euros

13.7 million euros

+24.5%

Investment

24 million euros

29.9 million euros

+24.6%

Employees, worldwide

4,751

4,930

+3.8%



“Our strategy of focusing on the manufacturing and automotive industries was implemented consistently and successfully in the fiscal year that just ended: We have gained more than 50 new customers in this segment. Our new global organization, based on business segments, has paid off as well,” says Axel Knobe, CEO. “Despite difficult market trends, we will continue to grow in the external market in 2005 and increase profits yet again.”

The company has set itself an additional goal for 2005: the sustainable increase of profitability by expanding external business and focusing on automotive suppliers, the manufacturing industry, and logistics service providers. In addition, gedas will keep its sights particularly on trends in the segment of international customers and the emerging markets of Central and Eastern Europe as well as China. The company’s global standardization of processes will lead to further cost savings and thus contribute to increased profitability this year.

Company profile:
gedas provides consulting on the development, system integration and operation of IT solutions to companies in the automotive and manufacturing industries. gedas’s technological expertise in its core market and its knowledge of business processes in the automotive industry also benefit numerous customers from other industries and the public administration sector. The IT service provider has developed its own comprehensive philosophy, called “Intelligent Transformation,” which is based on three core concepts: technological benefits, an integrated approach, and a useful interface between people and technology.
gedas, a subsidiary of the Volkswagen Group, is headquartered in Berlin and maintains 50 branch offices in 13 countries. In 2004, the company and its approximately 5,000 employees generated sales of 567 million euros.

Contact:
Dagmar Nielsen
Phone: +49-30-39 97-15 34
Fax: +49-30-39 97-29 75
E-mail: dagmar.nielsen@gedas.de

  www.gedas.de

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