2024/08/22

Gloster acquires a 70% stake in two software development companies

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Extraordinary information

Gloster Infokommunikációs Nyilvánosan Működő Részvénytársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A. A/2. building; hereinafter referred to as the "Company", "Gloster") is a public limited company incorporated under Hungarian law in accordance with the applicable laws, in particular the Capital Market Act CXX.

Law ("Tpt.") and the General Business Rules of the Budapest Stock Exchange, the the following information to the Honoured Investors.

Gloster acquires 70% stake in two software development companies

The move will increase the dividend to Gloster by almost one and a half times

BMW Munich recently awarded a software development contract worth €15 million[1] Gloster-Minero IT Hungary Kft. and the German Gloster GmbH for EUR 1,000 million, it acquired a further 19% stake in Gloster.

The transactions are the second step of the previous acquisitions[2] [3], for which all conditions have been met and the necessary administrative steps and court proceedings are ongoing. The move is value-creating for shareholders because the dividend to Gloster from the Companies' results will increase by almost one and a half times already in 2024 (dividends to outside shareholders in 2023 were close to HUF 206 million). Gloster has carried out the financial completion of the transactions 100% from its own resources, without recourse to bank funding (no increase in indebtedness) or capital increase (no dilution of shareholders).

Gloster-Minero IT Hungary Kft.

Gloster-Minero IT Hungary Kft., a successful supplier to the German automotive industry for more than ten years, will continue to operate with unchanged management and geographical focus as a German-Hungarian joint venture between the Munich-based multinational Sulzer GmbH and Gloster.

Sulzer GmbH, the Bavarian co-owned IT company founded in 1978, has offices in ten locations around the world, including the US and India, and is the 16th largest IT supplier to the German automotive industry with sales of around €80 million and 650 employees[4], including BMW, Audi, BASF, MAN, Daimler and Skoda.

Despite the German economic problems, Gloster's global customer BMW continues to grow steadily with 2,555,341 cars sold in 2023, an increase of 6.5% compared to 2022[5].

Gloster GmbH.

Gloster GmbH, winner of the Audi Innowation Award, was founded in 2009 with the aim of providing high quality nearshore services to the German market. The founding owners had previously worked as external IT consultants for Volkswagen AG and AUDI AG, so they had the contacts to start the business.

The aim of the additional acquisition is to build on Gloster GmbH's existing successful local operation and, in line with the 2026 strategy, to give Gloster a local presence with its own sales office in the DAH region (Germany, Austria, Switzerland), in order to win further long-term, high-value, high-profit - but not only automotive - software development contracts. In 2022, the group won a EUR 700,000[6] project for the renewal of the German Audi production reporting system for Audi through Gloster GmbH, which was extended for the same amount on 2 July 2024[7].

Another step in implementing the strategy

The move is in line with Gloster's Investment Presentation 2024, published on 23 April 2024,[8] in which it will acquire additional stakes in its existing and performing subsidiaries in order to generate higher earnings.

Gloster's shares are also followed by two investment providers, Equilor with a 12-month target price of 1396 Ft/db (hold recommendation) and ERSTE with a target price of 1183 Ft/db (buy recommendation).

This communication does not contain any information previously declared to be inside information, but merely informs investors of the implementation of the measures promised in the previous disclosures.

About Gloster

Gloster on BSE listed in the standard category of the BSE, offering a wide range of international IT service provider. In its more than 20-year history, Gloster has grown from a hardware garage company to a software to a software-focused international medium-sized company. Gloster is a fast-growing eleven transactions since 2018, and has grown to expanded its activities in systems integration, cloud solutions and and international software development services. The group is currently currently has a team of nearly 350 people, with the most recent (Hungarian Accounting Standards 2023 consolidated financial statements (according to Hungarian accounting standards), its adjusted turnover is 10.3 billion HUF and adjusted EBITDA of HUF 976 million.

Nagytarcsa, 2024. august 22.

Gloster Infocommunications Plc.

More information:

dr. Eszter Bassola

Investors relations officer

bassola.eszter@gloster.hu

[1] Gloster wins EUR 15 million industrial software development contract from BMW https://gloster.hu/uploads/befektetoknek/kozzetetelek/rendkivuli-tajekoztatasok/Rendkivuli-tajekoztatas-15-millio-EUR-os-megbizast-kapott-a-Gloster-a-BMW-tol-6672898577f31.pdf

[2] German automotive software developer acquired by Gloster https://gloster.hu/uploads/befektetoknek/kozzetetel/rendkivuli_tajekoztatasok/14863-Nemet-piacra-szolgaltato-autoipari-szoftverfejlesztot-vett-a-Gloster.pdf

[3] VW and Audi German software supplier to Audi and Audi is to be acquired by Gloster https://gloster.hu/uploads/befektetoknek/kozzetetel/rendkivuli_tajekoztatasok/21204-Rendkivuli-tajekoztatas-_A-VW-es-az-Audi-szoftverbeszallitojat-keszul-megvenni-a-Gloster.pdf

[4] https://www.sulzer.de/news/top-25-it-dienstleister-sulzer-gmbh-in-top-20-etabliert/

[5] 2023 (Full Year) Global: BMW and MINI Sales Worldwide

https://www.best-selling-cars.com/brands/2023-full-year-global-bmw-and-mini-sales-worldwide/