Missing Link

Invented by nature. Enhanced by us.

THE

ANNUaL REPOrT 2012

Annual Report 2012

CONtENtS

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MISSING WHAT?
The story about the Missing Link

KEY HigHligHtS OF 2012

Global expansion of our business

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OUr JOUrNEY
Thriving to become the leading IT solutions company in CEE & beyond

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THE MISSING LiNk ViSiON

Reshaping the role of information technology

OUtlOOk 2013
Considering the next key milestone

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OUr tHrEE Pillar BUSiNESS StratEgY

Improving the core, innovating, going global

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FOrEwOrD MaNagEmENt
Branislav Vujovic , Gnther Meyringer, Georg Schoder, Dejan Popovic

WE CarE ...
... about the world & about you

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New Frontier Group New Frontier Holding GmbH Pottendorfer Strae 2325/4/3/2 1120 Vienna, Austria Phone: +43 (1) 890 46 23 10 Fax: +43 (1) 890 46 23 30 ofce@newfrontier.eu www.newfrontier.eu
UID No.: ATU67663600 Commercial Registry No.: FN 389543h Registered at the Vienna Commercial Court Legal form: Limited liability company Management team: Gnther Meyringer, Dejan Popovic , Branislav Vujovic Concept & design: moodley brand identity Text: moodley brand identity, Michael Endlicher Illustrations: Thomas Paster, Roland Vorlaufer Print production: 08/16 Printproduktion GmbH

FiNaNcial RESUltS 2012

Performing in a challenging market

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valUE PrOPOSitiON FOr OUr cliENtS BITE:

Business Innovation, Transformation,Execution

OvErviEw NEw FrONtiEr GrOUP

Group entities at a glance

Missing what?
Missing links have, amazingly, triggered off some of the great inventions of our age. Missing links are friendly evidence and hidden reminders that we can do better. Missing links can be found in all states of transition where ambitious beings are in search of New Frontiers. Imagine yourself as an individual and we as a group as the next missing link for something new and great. Only history can tell us if we are successful because a missing link can only be awarded after the next stage has been reached and not during the intermediate phases.

We need to learn from history to lead into the future.

We aim to understand the inspiring qualities of missing links. What they have in common. How they developed. And why it took them so long to emerge. So its up to us to trigger off new things and to provide the evidence that we can always do better.

We are ambitious enough to try both.

NEW FRONTIER GROUP ANNUAL REPORT 2012 THE miSSiNg LiNK ViSiON

The Missing Link Vision

Two main forces have driven the economy in recent years.

The first, very visible force is the economic downturn and the increased volatility and uncertainty inherent in our economic system. The second force, while constantly apparent but still overshadowed by the crisis, is the massive transformation within the digital economy. Most of the economy is still relying on asset-based values created during the industrial age. The focus is on efficient resource and asset allocation and optimized supply chains. The leaders in that segment struggle to understand, let alone to embrace the transformation to the digital economy.

But the trend is unstoppable. While B2C enterprises are seeing more and more of their business moving online replacing effectively physical distribution channels such as outlets and stores B2B players are still relying on incumbent business models. Financial institutions with long established branch networks are under pressure from virtual banks, whose infrastructures are little more than an online portal and efcient online marketing.

The direct impact of the increasingly uncertain and volatile economy is that ownership and long term asset allocation planning is being replaced by exible and agile subscription, enabled by efcient online brokerage of services. Startups are being founded in every corner of the globe with new ideas for digital marketing, digital sales, digital delivery and digital support.

THIS VIRtUAL WORLD IS PERSONALIZED, SIMPLE, SOCIAL On Monday morning the AND OPEN, same individuals revert to their AND ENABLES corporate lives, big COLLABORAtION. using company IT

appear, they get whatever support they need online and then record their opinion on the whole process. This virtual world is personalized, simple, social and open, and enables collaboration. It is reachable from anywhere at anytime and brings value and fun to users. It just feels good.

The pressure on global enterprises to join this digital transformation is heavy but how to sustain the old model while disrupting it?
Analyze the massive difference that has opened up between private life IT usage and IT in the corporate world over the past 23 years. Individuals are part of virtual worlds in social communities where they collaborate and communicate. They share multimedia content selected for them based on their interests and preferences. They search for desired products and services, read the opinions of other users and buy products with just 1 click. They instantly download products or test services on the spot. If problems

that provides an inside out view on the business. This world is almost mystically closed and protected; informationsharing between selected partners and clients being in most cases impossible owing to complexity and technical barriers. Over the last decade big company IT tried opening up the new world by developing web interfaces to core applications. Unfortunately most of these applications are nothing more than interfaces with the old transactional legacy system. Communicationsharing across organizations is still frequently limited to EDI interfaces for supply chains and to e-mail for human to human internal and external communications. So the real challenge is how to keep corporate IT for internal process optimization while using digital transformation to open up your organization.

BraNiSLaV VUJOViC PrESiDENT, NEw FrONTiEr GrOUP

NEW FRONTIER GROUP

Crossorganization collaboration Accelerate knowledge discovery Pervasive environment Improve branding and image Real time

Increase penetration Actively engage clients

ANNUAL REPORT 2012

Engagement and empowerment of employees New Frontier Groups The Missing Link
Like anthropologists, we need to nd this missing link the seamless connection between these two worlds. Our mission is to come up with solutions enabling the digital transformation in three key areas: Empowerment and engagement of employees Empowerment and engagement of customers Enabling business model innovation I have seen many companies implement single solutions based on social tools and products but most of these projects fail to deliver the results anticipated. In order to empower and engage employees it is necessary to nd a way to connect people, available information, and knowledge so that collectively they act more creatively and are more empowered than individually a way of making people more responsive, more understanding of clients needs, better able to adjust processes, and able to do so faster. To achieve employee empowerment and engagement our solutions and tools are developed with that idea in mind: To enable team or group collaboration, communities and participation of employees based on social methodologies. To use extended proles of employees with skills, knowledge and experience as well as all ofcial and internal certicates. Social components are included with microblogging, connecting and following colleagues. Sharing knowledge, experience and expertise is part of the solution as well as ranking and searching based on voting, tagging, commenting and liking mechanisms increasing the value of information. It helps communicating and sharing group vision, strategy and goals and includes innovative brainstorming tools. Engagement is supported with gamication and personalized information feeds.

THE miSSiNg LiNK ViSiON

Private and secure workspace

Great user experience

ContextEasy internal sensitive and external rightsourcing content of information sharing

Business workow integration

Social elements

Mobility anytime anywhere

OUR EXPERIENCE IS tHAt tRUE tRANSFORMAtION ONLY HAPPENS IF tHE SOLUtION ADDRESSES ALL tHREE AREAS.

Engagement and empowerment of customers

The second pillar of digital transformation is to reshape customers commitment and engage with them in open and transparent collaboration. Our solutions and services address the complete range of activities from performance marketing and targeted digital marketing to collaborative tools for new sales and delivery processes or cloud services brokerage. Such social solutions help identify customers and prospects, deliver appropriate information easily, and actively integrate clients into sales, delivery and support processes. As examples, here are the requirements and benets of the Missing Link collaboration tool:

Characteristics of New Frontier Groups Missing Link solutions

Our experience is that true transformation only happens if the solution addresses all three areas while simultaneously adjusting and changing core business processes. The new way of doing things and the new style collaboration need to reinforce each other and ultimately create a new business model.

Business model innovation

The ultimate objective of our Missing Link solutions is to enable our clients to develop new business models. Our Cloud Services Brokerage solution, for instance, opens up a new line of business for telecom companies and enables them to offer infrastructure, platform and software solutions as subscription-based services.

Our Business Collaboration solution introduces new value propositions and combines social networks with digital channels, enabling our clients to address uncovered customer segments and to expand their geographical reach while changing their cost of sales structure. Combining employee engagement, client engagement and new digital business models we help you, our clients, to create your Missing Link into the digital economy.

Branislav Vujovic
President, New Frontier Group

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rESHaPiNg POrtalS tO BEcOmE iNtElligENt liNk tO cliENtS

Saa BiLaNOViC ACTiNg HEaD Of E-CHaNNEL SaLES DEParTmENT, RaiffEiSENbaNK

iBanking New Frontier Groups Missing Link to transform online banking

Innovative solution that meets modern banking and marketing requirements

The iBanking system that New Frontier Group implemented at Raiffeisen Bank offers a completely customizable interface and support for easier user segmentation. The system is ready for integration with the contact centers. It is completely interactive and for the rst time enables customers to display graphical data in real time. It allows integration with social networks like Twitter or Facebook and YouTube service. It is usage intuitive: It enables one click payment, supports categorization of expenses, and brings the ATM and branches locator closer to the client. It offers full support for modern mobile banking with high levels of security and is browser-independent.

The basics of iBanking solutions are strict adherence to the dened standards. All security protocols in all forms of the clients communication with the bank are followed, and mobile device standards are used consistently. Based on this information, the solution generates content views that provide maximum quality on any device, in accordance with its capabilities and limitations. Even the way a mobile phone or tablet is held in the hand is taken into account so that the content view will not be the same if a device is in portrait or landscape mode. The iBanking solution appeared to be the most adaptable to our needs as a bank compared with the other solutions we considered, both in terms of an attractive solution for users (with the possibility of applying it to the proper sales channel for our products) and in terms of the future development of IT technologies and their implementation. With this concept and applications development strategy, we do not anticipate, at some point in the future, encountering a situation where, owing to obsolescence, the application would have to be completely changed. With functionally and visually advanced forms, two-way communications, multimedia iBanking has evolved into an application with great potential. The application, with its exible concept, offers a variety of services and capabilities that keep up with global trends. We expect our customers to accept the new application as a modern solution for their nancial needs.

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FrOm mONO-cEll tO cOmPlEX OrgaNiSm

FrOm iNDiviDUal kNOwlEDgE tO cOllEctivE iNtElligENcE

Employee engagement
HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
We believe that the three key competitive differentiators nowadays are the use of information, the sharing of knowledge, and collective creativity. New Frontier Groups Brainpower helps companies accelerate their transformation towards the knowledge-driven society.

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON?

WHaT wiLL bE THE imPaCT ON CLiENTS?

In the past, knowledge management systems have not yielded the returns expected because most of the solutions were only conceived as knowledge repositories. With social employee engagement solutions, we reshape the approach, focusing on the engagement between employees to enable knowledge-sharing and collaborative creation of ideas. We do not say that storage of information is unimportant, but it plays a minor part because our solution is all about sharing knowledge within an internal ecosystem.

We wanted to create a platform that is as easy-touse as an iPhone app and as interactive as Facebook. That was the start of New Frontier Groups internal employee collaboration solution: Brainpower. We used Microsoft Sharepoint as a standard platform and enhanced it with features such as context-sensitivity and messaging. By doing that we created a highly intuitive and functional environment for employees to share content, collaborate and engage with each other.

the

Eukaryotes
About 1,800 million years ago. When evolution started there were living things that did not have a nucleus, namely prokaryotes. Eukaryotes, i.e. living things with a nucleus evolved as a result of blending with bacteria. In the case of the eukaryotic cells, the metabolism accelerated and they were simultaneously able to use their energy more efciently. So, for the rst time, the prerequisites for the development of the complex cells of higher forms of life were created.

DragaN CENiC PrODUCT MaNagEr & HEaD Of BraiNPOwEr DEVELOPmENT, NEw FrONTiEr INNOVaTiON

MarKO STUPar DESigNEr BraiN POwEr, NEw FrONTiEr INNOVaTiON

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FROM ISLAND APPLICATIONS TO A COMPLETE END-TO-END BUSINESS PROCESS SOLUTION

FrOm SimPlE tO cOmPlEX OrgaNiSm

ISTVN HErNYi HEaD Of R &D, XaPT

Deep process integration

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON?

We developed the idea for NAXT during the ERP project for the Hungarian Caterpillar (CAT) dealer. Until then CAT dealers worldwide used a legacy application to link their businesses with Caterpillar (the equipment manufacturer) and their clients (purchase or rental clients). With NAXT, which is based on Microsoft Dynamics AX deeply integrated into Microsofts Ofce productivity suite, dealer clients and their customers can collaborate across functions and organizations using the same information base.

HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
We included recent technologies such as GPS tracking, integration of Bing and Google maps, mobile devices and big data analytics in our solution. These features and the continuous digital information ow, without technological barriers, from the producer to the end customers saves both time and money. In other words, companies using this digital workow tool will move from simply operating to actually orchestrating their businesses. They will be able to turn their whole organization into a one-stop-shop enterprise by focusing on their clients rather than just dealing with complex business process adaptations.

WHaT wiLL bE THE imPaCT ON CLiENTS?

We know that, by using NAXT ERP solutions, manual work and error intervention will be reduced signicantly. In complex businesses it is crucial that everyone works on the same page and gets the same relevant information. So we included a single information database. Dealers can rent their high value machines more efciently and increase utilization, reduce service and maintenance times, and minimize downtimes. Companies can easily develop business processes applying to diverse vendors and suppliers and to multiple clients and partners.

Foliage venations
Silur, between 443 and 419 million years ago. Ferns were the rst plants which kept forming more and more complex foliage venations. The more such ramications branched out, the more water and nutrients the plant could transport from its root into its leaves. So these became the sustainable source of nutrition and thus provided the key to terrestrial animals spreading throughout the world.

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FrOm watEr tO laND

FrOm PUSH markEtiNg tO iNtEractivE cliENt rElatiONSHiP

Client engagement
HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
Let me put it like this: Pure e-mail conversation is dead because it excludes social collaboration. As business becomes more and more digital, companies need to develop their online communication channels beyond pure e-mail interaction. With our social collaboration solution companies can engage with their clients more profoundly and present personalized and individual faces while retaining full historical trails covering the details of their interactions. To sum up: Discourse turns every electronic conversation into a personalized experience.

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON?

WHaT wiLL bE THE imPaCT ON CLiENTS?

Companies using Discourse as a social collaboration solution will be able to service multi-channels more efciently and effectively within their organization but also with their customers and external users. As I have learned from my experiences with our clients already using Discourse, their customers satisfaction and engagement has risen sharply. They also report that the solution leads to a reduction in servicing costs owing to better co-ordination mechanisms between all stakeholders.

Discourse captures the current trend of social, collaborative and inter active communication that we all know from our private lives. We transformed that for business life. I believe this development will continue and solutions like ours will have a strong inuence on how we will work together in the future.

the

Rhynia
Devon,about 396 million years ago. Rhynia, the rst land plant, developed from the water plants that were prevalent until then. Their principal axis ran horizontally in the soil and the walls of the water-drawing cells were, for the rst time, strengthened with a sort of simple stroma. Evolution developed the decisive feature of their being able to grow vertically on land.

JarEK SYgiTOwiCZ FOUNDEr SmarTUPZ

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FrOm PHYSical NEtwOrk PrOviDEr tO cOmPlEX SErvicES markEt PlacE

FrOm watEr tO laND

Ur GaPEr FEC CEO NF CLOUD SErViCES BrOKEragE

Online market place

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON?

I assume that its widely known that the core idea of cloud services solutions is to provide IT services over a network, typically the Internet. We take it one step further. For me, New Frontier Groups Cloud Services Brokerage is the missing link between core internal IT solutions for services provisioning and new and external services.

HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
We provide an innovative cloud service solution for telecom services providers. I see an opportunity to bundle the core services of telecommunications companies (e.g. mobile phones) with internal services like laptop backup services via broadband access and external cloud services such as Google Apps as an essential part of the digital transformation process. That will help them extend their portfolios and attract new customers, while using existing capabilities.

WHaT wiLL bE THE imPaCT ON CLiENTS?

Clients will be able to open up new revenue streams and create new business models without too much upfront investment. As we know, the industry is under severe pressure from regulatory changes and competitive challenges. Thats where we want to make a contribution and bridge the gap between existing infrastructures and seize the opportunity to offer new services. Using elastic pay-per-use models telecom companies can attract new client segments and create differentiated business models.

the

Tiktaalik
Devon, between 384 and 375 million years ago. Leaves fell from the rst deciduous trees into the shallow waters of lakes and rivers and attracted many small animals. But large sh failed to benet from these spoils as they could not swim over to them. However, the Tiktaalik genus developed, for the rst time, ns with joints and simple lungs. A substantial step towards being able to hunt on land was thus taken.

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aDaPtiNg aND traNSFOrmiNg

rESHaPiNg POrtalS tO BEcOmE iNtElligENt liNkS tO cliENtS

Intelligent Portals
WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON? HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
We will enable the digital business transformation by creating an easy-to-use environment for internal employees as well as clients to access online information about products, offers and services. We nd out every day that informing, positioning, selling and servicing products and services online are critical capabilities for any company using multi-channels in their business strategy.

WHaT wiLL bE THE imPaCT ON CLiENTS?

During the development of the product we thought why not develop something Lego-like? With our exible and intelligent solution, companies have the opportunity to apply a moduletype approach with pre-built functions or widgets. In addition, the modular approach allows them to customize and individualize portals for specic client segments and even for individual customers. In a world full of copy-cat operations, I believe this approach allows competitive differentiation at a fraction of the cost of pure customer development.

The main idea behind the Missing Link solution we created is to maximize utilization of the existing non-life insurance core system by linking core system functionalities with a newly developed client web portal. Thanks to this solution, our customers can offer their clients well-designed and exible portals at reasonable cost and their retail clients can receive attractive offers for travel insurance, home insurance and car insurance over the web.

the

Walchia
Carbon, between 303 and 358 million years ago. Walchia, as the descendant of the fern, developed cone-like structures and tiny scale-like leaves that soon looked like needles. The early conifer thus triggered off a quantum leap in the development of plants as they were no longer dependent on water to disseminate their seeds. From that time they began to be found all over the earth.

BOHUmr ZOUbEK HEaD Of SOfTwarE DEVELOPmENT, PrOfiNiT

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FrOm ONE-SiZE FitS all wEB POrtal tO SOCIALLY iNSPiriNg iNFO cHaNNEl

FrOm rEPtilE tO BirD

Intelligent Portals and big data

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON? HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
We know that people want to communicate using various channels (PC, tablets, smartphones, etc.). New Frontier Groups Intelligent Portals are the next generation web applications, supporting the migration of more and more clients to digital channels. With pre-built business widget functionalities, companies can build tailor-made user experience for different client segments while complying with strict security standards.

DEJaN PETKOViC BUSiNESS DEVELOPmENT MaNagEr, Saga

WHaT wiLL bE THE imPaCT ON CLiENTS?

With our solution, banks have the exibility to mix & match nancial information and upsell opportunities to the right customer segments. And, which is in my opinion at least as important, it is easyto-use and fun-to-use. When customers obtain relevant information in a simple and understandable way, we can be sure they will return to the platform again and again.

In the past company web portals have been used either purely for information or as extensions of their corporate IT solutions, i.e. enabling online transactions such as e-banking or travel sites. But most of these web applications treat all customers in the same way and are just another front-end for accessing back-end applications. We have applied three principles of social business applications: customization and personalization of the interface, integration of informational, transactional and social content in a exible way and the use of big data analytics to provide specic customer insights. With this users obtain a completely new experience and companies engage freshly with different client segments.

the

Archaeopteryx
Jura, between 152 and 145 million years ago. Originally, dinosaurs could not y. But theropodes, two-legged meat eaters, developed a fork leg from their merged clavicles, asymmetrical wing feathers and a rst toe that pointed backwards distinctly bird-like features. At the interface between lizards and birds, the Archaeopteryx was truly the symbol of a species that advanced into new dimensions.

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ACCOMODATING TO BOTH laND aND watEr

acHiEviNg BOtH BUSiNESS rESUltS aND EXcitEmENt aND iNSPiratiON

Gamication
HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
For us, Ulympix breaks new ground in customer engagement and loyalty because companies have the opportunity to go beyond classic brand communication. It is an open gaming platform for individuals and social communities but also for corporations.

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON?

WHaT wiLL bE THE imPaCT ON CLiENTS?

As we have learned from the past, gamication can play a key role by stimulating awareness of the online activities of companies. Through games, customers click more readily on brand websites and their retention times increase. I believe that, by using an open gaming platform, companies can reach a wider user audience and promote their brands and products in more inspiring and exciting ways.

The idea for Ulympix (Your Olympics) was born during the 2012 Olympics in London. As we walked through the streets of the city, we thought about the possibility of combining business and gaming to inspire participants and spectators. We created New Frontier Groups Ulympix to create links between brands, products and services and peoples natural sporting instincts.

the

Pakicetus
Eocene, about 50 million years ago. As a result of the great continental displacements, new oceans formed in the habitats of many mammals. The wolf-sized Pakicetus was the perfect example of a mammal adjusting to radically different environmental conditions. Its back teeth, ears and cranial cavity made it quite clear where it belonged to the whale family. One step back into water was in fact a major leap forward into a superior existence.

LEVENT OZaLP MaNagiNg DirECTOr, OPTiim DaNiEL LOrEr DirECTOr BUSiNESS DEVELOPmENT, OPTiim

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FrOm PriNt tO Digital cONtENt aS maiN cOmmUNicatiON vEHiclE

FrOm aNimal NOiSES tO HUmaN SPEEcH

PaTriCK KarL MaNagiNg DirECTOr, BEYOND PUbLiSHiNg

Business model innovation

WHaT iS THE iDEa bEHiND YOUr miSSiNg LiNK SOLUTiON?

Content is king might somehow sound oldfashioned but for me it is more important than ever. Everything is about creating, adapting and storing information. How companies leverage their information assets will be critical for their future business strategies. Content will be an essential new pillar in prospective business models. It is up to us to create smart connections between the physical and the digital world.

HOw wiLL NEw FrONTiEr GrOUP ENabLE THE DigiTaL/bUSiNESS TraNSfOrmaTiON wiTH THiS iDEa?
Think about content creation today: Editors use computers before they print pages. Designers use Photoshop before they plot something. Photographers take their pictures with digicams before they are printed in magazines. Everything is created digitally before it is printed. Our approach is to help our customers to stay digital in every corner of their organization - from sales to support. Brochures, catalogues, magazines and service guides have faster delivery cycles and more timely information if delivered digitally. And, as a matter of fact, if nothing is printed then you dont need to pay for print production! Well-designed digital information will not only increase its usage and acceptance among end customers but also give companies a unique position in the market. The value of the information provided moves to the center of the companys digital business model.

WHaT wiLL bE THE imPaCT ON CLiENTS?

I have read that 95% of the Fortune 500 companies are actively working on multichannel publishing solutions with mobile apps. So the topic is hot. I believe that companies with a clearly dened digital content strategy will benet from reduced costs of publishing and distribution while increasing the timeliness and quality of the content provided.

the

Homo Sapiens
Pleistocene, about 100,000 years ago. It is well known that Homo Sapiens differs from anthropoids not only in having an arched palate and a sunken larynx. The development of such anatomical differences was, however, what triggered off our trail-blazing power of speech. From them originated the entire universe of todays communicative opportunities.

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NEW FRONTIER GROUP ANNUAL REPORT 2012 FOrEwOrD MaNagEmENT BraNiSLaV VUJOViC PrESiDENT Of THE GrOUP

Dear clients, partners, IT consumers,

The Missing Link helping our clients to generate new sources of revenue.

Have you asked yourself lately why browsing on the iPad and launching the new app on Sunday is so easy, while on Monday morning you find yourself back in a corporate IT desert of complex systems and applications; a desert where the end-user seems to be more the problem than the solution and where technology barriers across multiple corporate applications make working together a daily nightmare.

This is what we call the Missing Link IT systems created over the last 20 years have improved operational processes in an asset-driven world enormously (production planning budgeting processes to allocate nancial resources,) but they have done very little to address the scarcest resource of the 21st century turning collective intelligence within and across organizations into knowledge and creativity for new innovation. As New Frontier Group and personally as the leader of the innovation team, we have together plotted a route to create this missing link for our clients to create easy-to-use, intuitive solutions that will bring about new levels of engagement among employees (employee engagement), between employees and clients (client engagement) and employees and partners (business partner engagement). In line with this vision, we now have in place a unique set of solutions such as digital publishing, online market place, and social

collaboration platforms for internal and external collaboration, all of which are now in active use in world-class corporations. If you want to make a quantum leap in unleashing the power of your organization, internally as well as towards your clients, then discover with us what New Frontier Groups Missing Link portfolio can do for your business.

Branislav Vujovic
President, New Frontier Group

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NEW FRONTIER GROUP ANNUAL REPORT 2012

Dear clients,

Focus on clients, focus on execution, focus on talent.

2012 was another year of the new norm in our economy a volatile stop-and-go environment, where operational crisis management is on every executives daily agenda, while strategic transformation is understood to be mandatory for success in the long run. As supplier and advisor to large and medium-size enterprises, we keep encountering this constant conflict through changes in IT budgeting cycles and IT project approvals. As New Frontier Group, we see our sole purpose as assuring business value for clients via technology-enabled business transformation.

Our New Frontier Group BITE (Business Innovation, Transformation, Execution) solutions portfolio and offer addresses all three critical areas of value creation for our clients: providing true business innovation that brings about new revenue streams for our clients, solutions that transform their business processes and strengthen their competitiveness and, nally, driving IT efciency to reduce costs while assuring services delivery. During the year we concentrated on improving our business execution, adding incremental growth while improving our business mix to increase services and software to widen operating margins. We grew revenue by 29%, increased functional margin by 13% and ultimately improved operating prot by 2% margin points, all this while investing an additional EUR 5 million to extend our sales, delivery and R&D capabilities. Our Microsoftfocused company XAPT signed a multi-million ERP project agreement in Australia and, with this success, we are extending our geographical reach to Asia and Australia and are now a global IT solutions company.

In line with our focus on talent and business innovation, we already have a team of more than 100 people as part of our Missing Link innovation initiative. Its main purpose is to help you, our customers, in your transformation to the digital economy, creating new business models based on information and knowledge-driven services. For 2013 we plan to reshape our goto-market in two major areas. First, by strengthening our industrial alignment to have client management, portfolio and delivery capabilities more strongly linked to vertical industries; and, secondly, to promote more actively our Missing Link portfolio to our entire client base through dedicated solution teams. With these moves we believe we can further increase our value creation for our clients. Our operating parameters remain unchanged for 2013: to grow organically by at least 13%, to add the same top line volume (13%) through M&A if we can identify the right opportunities, and to operate at 10% operating prot while reinvesting incremental prot in the business.

FOrEwOrD MaNagEmENT

GNTHEr MEYriNgEr CEO Of THE GrOUP

Gnther Meyringer
Chief Executive Ofcer, New Frontier Group

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NEW FRONTIER GROUP ANNUAL REPORT 2012 GEOrg SCHODEr CFO Of THE GrOUP FOrEwOrD MaNagEmENT

The 2012 nancial statements again show strong performance on two main nancial indicators: The equity ratio remained at a strong 40% and the nancial leverage, dened as net nancial debts to EBITDA, remained below one. Both indicators are the result of delivering protable growth and managing the working capital efciently. In order to remain successful going forward, we will further increase the nancial transparency of our business. As CFO of New Frontier Group I am working constantly with my team to increase our nancial excellence as the foundation for our further business success and to increase our capabilities for making fast and right decisions in volatile and uncertain times. We work on this nancial excellence using three main drivers: simplicity, quality, and speed. Simplicity creates transparency, which is necessary in an increasingly complex environment. By providing the right amount of information, the management immediately pays attention to the critical value drivers.

Dear clients, shareholders and business partners,

Quality is an essential ingredient in our principle of decentralized entrepreneurship. The role of nance is not only to provide complete and correct information, but to add value, especially by sufcient analysis. This in return assures the disciplined use of capital, accurate budgeting, efcient cost management, and therefore stable cash ows. Speed is also an essential requirement owing to the volatility of the economic environment, the fast pace of change in the IT industry, and regulatory compliance. The nance organization can achieve this by integrating the nancial processes to make them efcient and seamless. Driving along these three areas, we aim for 2013 to improve our net working capital yet again, especially by managing the volume of work in progress better. We will also focus on process automation along the value chain of our services-driven business so that functional units (sales, delivery, nance) can work more uently together and collaborate more easily based on shared nancial information.

I joined New Frontier Group in the first quarter of 2012 at an exciting moment, as the group was expanding successfully in an economic environment that was still volatile, which made the management of cash flow and liquidity quite complex and challenging.

Financial excellence as the foundation of business success.

Georg Schoder
Chief Financial Ofcer,

New Frontier Group

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NEW FRONTIER GROUP ANNUAL REPORT 2012 FOrEwOrD MaNagEmENT

Dear clients, stakeholders and business partners,

Entrepreneurial freedom and responsible governance and compliance.

We see this as one of the main factors differentiating us from our global competitors with this model we act faster and in a more localized fashion, we react more swiftly and are more responsive to our clients needs. Acknowledging this model, we have implemented a few but very strict governance processes that truly allow us to think globally act locally, while incorporating proper governance and preparing New Frontier Group for a future open market listing. All of our companies, small startups as well as large-scale integrators, are required from day one to report in accordance with IFRS and all group companies are externally audited on a yearly basis. We have an annual budgeting process as well as a quarterly rolling forecasting process, linked to a monthly closure process in which each and every operating unit shares full nancial transparency. The nancial and legal teams of the operating companies are matrixed into the headquarter legal/governance team for proper governance and approvals. For 2013 we are also setting up an internal audit team, which will review operating companies on an ad-hoc basis.

At the core of our operating business model is our decentralized entrepreneurial organization, whereby each and every operating company operates in its market as an independent entity, while New Frontier Group headquarter gives clear direction and guidelines and equips all entities with new advanced processes as they come out.

Even if we are not legally required to do so, we will continue each year to publicize our key operating parameters so that any of our business partners or clients may check our nancial strength for themselves. We believe strongly that openness and transparency combined with our eld entrepreneurship is the best way to serve our clients while assuring corporate governance.

, DEJaN POPOViC CGO Of THE GrOUP

Dejan Popovic
Chief Legal/Governance Ofcer, New Frontier Group

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NEW FRONTIER GROUP

Value proposition for our clients BITE:

Business Innovation, Transformation, Execution

CHaPTEr I.

In recent years, we have worked continually to expand our solutions portfolio and offer capabilities organically as well as through M&A.

While this is, of course, a never-ending process, we are pleased that we now have the most complete solutions portfolio in our core region of Eastern Europe, Russia and Turkey. With the New Frontier Group BITE Solutions Portfolio (Business Innovation, Transformation and Execution) we address our clients three most critical questions:

How can you leverage technology to innovate and create new revenue streams and new business models? How can you leverage technology to improve our organizational competitiveness? How can you continuously reduce IT service delivery costs while assuring availability and security of services?

ANNUAL REPORT 2012 VaLUE PrOPOSiTiON fOr OUr CLiENTS BITE

Business Transformation Business Innovation

Leverage information technology to create new revenue streams and reshape your business models Leverage information technology to transform your company process and improve productivity and efciency

Business Execution
Leverage information technology to deliver IT services more securely and efciently

BITE

New Frontier Group BITE Portfolio

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Eng ag i

NEW FRONTIER GROUP ANNUAL REPORT 2012 VaLUE PrOPOSiTiON fOr OUr CLiENTS BITE

Business Innovation
Digital content Engagement banking

The Missing Link Portfolio for business innovation

Brainpower internal employee engagement

Brainpower is our solution for internal collaboration within an organization. It is built on top of standard Microsoft Sharepoint technology and uses the one-click away approach as the interface guideline. Microsoft Sharepoint is a powerful but complex document management, workow and collaboration tool; and with our Brainpower interface the solution provides strong collaboration functionality with unprecedented ease-of-use. We have applied methods such as context-sensitivity, gamication and messaging to make the solution interactive and intuititive. The overall business objective is to support the virtual enterprise and enable collective intelligence within companies.

within the company. Because it has more collaborative components than pure e-mail, it improves the capacity to manage client relationship. Today classic CRM systems are still primarily internal sales forecasting systems but Discourse is extending the CRM to real social collaboration with clients.

Collaboration

Cloud services brokerage

mpowerin de gc an us ng

Performance marketing

Engaging and empowering employees

With our business innovation portfolio we operate at the forefront of 21st century business enabling technology. What goes through every days press as social, mobile, analytical / big data and cloud we have reduced to tangible solutions and services to enable your companys digital transformation. We have more than 100 professionals dedicated to this topic ranging from GUI/user-interface experts designing hot mobile apps and cloud services experts building flexible services delivery platforms to collaboration experts supporting the virtual global enterprise. In 2012 we added critical capabilities around our Missing Link vision and our portfolio now includes the following components:

iBanking online portals

iBanking is the consequent application of all available social methods and takes web portals to the next level. Based on pre-built functions through widget technology, clients can create web portal applications much faster. In addition it enables for the rst time efcient customization of web portals for specic client segments or even for individuals without the need to create separate applications. All common channels such as Facebook integration, video communication and external feeds can be integrated into a client portal. Following the anytime, anywhere on any device approach the solution is available on the web as well as on smartphones. Built initially for the nancial services industry, the technology is exible enough to be applied to any other vertical industry and we are actively working to expand the industry specic widgets for other industries.

me to

Discourse external client engagement

Discourse is our social CRM to reshape the online connection between companies and their clients. Discourse enables a personalized and secure collaboration channel to clients beyond simple web portals. Facebook can be used as an entry point for client companies, which is then transferred into a Discourse Workspace for further secure collaboration between a customer and employees

rs

Gamication

Targeted digital marketing

Business model innovation

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NEW FRONTIER GROUP ANNUAL REPORT 2012 VaLUE PrOPOSiTiON fOr OUr CLiENTS BITE

Our Missing Link Portfolio comprises a stringent ow to enable our clients digital transformation:

Beyond Publishing digital content distribution

Today, in many cases, information is created and prepared in digital form before then being published in physical form. But increasingly the question is why use physical at all? With wireless, smartphones and tablets digital consumption is within continuous reach. With Beyond Publishing we address the three critical areas for digital content distribution: Fast and easy creation of content for smartphones and tablets Management of the digital content in a library Distribution of the digital content to end-user devices

Ulympix gamication
Games are as old as our human history. Games, or gamication of processes and activities, are increasing the engagement of participants as well as strengthening the bonding to products and services and ultimately to the brand/companies providing them. We apply gamication ideas to all our social solutions and with Ulympix we have created an open platform to link individuals and communities with brands and companies.

Client engagement

Business model innovation Employee engagement

NF Cloud Services Brokerage online market place

NF CSB is our solution to help our clients create online market places. It is currently optimized for telecom providers seeking to enlarge their portfolio and services and offer their clients base products and services beyond their own core offerings. NF CSB bridges internal IT systems of telecom providers such as billing and provisioning with external cloud solutions so that they can provide, service and invoice a bundled solution. As telecom and content providers markets converge, we see a strong need for brokerage solutions. NF CSB is now at work in this eld.

Solution platform

Both Interact search optimization

No one will nd your online presence unless you market and position it properly. Having a leading position in popular search engine results is a must. With Both Interact we help clients improve their search ranking results and make their online presence more successful.

WItH OUR BUSINESS INNOVAtION PORtFOLIO WE OPERAtE At tHE FOREFRONt OF 21St CENtURY BUSINESS ENABLING tECHNOLOGY.

Creating and leveraging the content

Digital publishing

Creating the traction

Performance marketing

Creating the social experience

Brainpower iBanking Ulympix Discourse

Creating the market Place

Cloud service Brokerage

Missing Link solution platform

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NEW FRONTIER GROUP

ERP/SCM /BPM

Business transformation
Core application expertise for business transformation

We are a recognized solution integrator for all major ERP Platforms (SAP, Microsoft, Oracle) with more than 350 consultants working in that eld. We provide expertise from blueprint analysis to operational support covering the full ERP life-cycle. Industry-wise, our major activities are in the areas of Energy&Utilities, Industry&Manufacturing, Retail& Distribution as well as Transportation.

Information management/ middleware

CRM/collaboration
Parallel to our ERP team, we meanwhile have more than 150 CRM consultants deploying SAP, Microsoft and Oracle based CRM solutions to our clients. From banking front-ofce solutions to energy CRM implementations we serve a wide range of clients and industries. Based on our expertise, we can be platform-agnostic and choose whatever technology best serves the clients purposes.

Within our information management / middleware group we work with our clients to gain control over information assets as well as to create orchestration between different applications. We have deep expertise in the elds of master data management and data quality management two key requirements for successful ERP SCM/CRM projects.

WE ARE A RECOGNIZED SOLUTION INTEGRATOR FOR ALL MAJOR ERP&CRM PLATFORMS (SAP, MICROSOFT, ORACLE).

ANNUAL REPORT 2012 VaLUE PrOPOSiTiON fOr OUr CLiENTS BITE

opened up to new digital channels. We are one of the few companies in our market that can provide full end-to-end integration from the back-end application to the front-end portal.

BI/analytics/ data warehousing

In most cases, our BI Team works extremely closely with our ERP and Information management teams. Our consultants have deep project expertise in IBM Cognos, Oracle Hyperion and SAP Business Objects. Our team is, in particular, strengthening expertise within the industry and providing more and more specically tailored industry-related BI solutions, for example for fraud-avoidance for insurance companies.

Custom application development

While packaged applications are also gaining more and more traction in the CEE countries, Russia and Turkey, there are areas where customer development remains the primary choice. With three development centers in Prague, Bucharest and Belgrade as well as off-shore capability in Russia, we can full local market as well as large scale project requirements.

Document management/ workow management

Process automation remains a major priority for many of our clients seeking efciency improvements. With our consultants using standard ECM platform technologies, we support the whole document ow from capturing and managing/processing to archiving. In many cases we combine ECM and BPM solutions for complete process orchestration in complex business environments. Main customers are in the area of nancial institutions, public sector and telecom.

Successful companies are on a continuous quest for operational and business excellence and IT remains a key change agent and efficiency enabler. Within our portfolio, we address the most critical application areas for business transformation, namely ERP and supply chain management, data warehousing/ analytics and business intelligence, document/workflow and business process management, information and content management, CRM, portals and self service solutions

and customer-specific application development. We have within New Frontier Group more then 1000+ professionals from the business consultant developing the process blueprint to support consultants managing complex application environments. We support all key application platform technologies (Microsoft, SAP, Oracle, IBM) so that our clients obtain independent and best-of-breed advisory services from us. The main areas of expertise are set out below:

Portals
Portals development was a core New Frontier Group expertise even before we created our iBanking product. As more and more business models go online, we see an accelerated need for easy-to-use portals with rich functionality. Only strong GUI design and interface experience coupled with deep development technology competence will lead to differentiation on the market. New Frontier Groups strength is where legacy applications need to be

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NEW FRONTIER GROUP ANNUAL REPORT 2012

Business execution
Reduce costs, reduce risk, assure service levels

Companies typically spend 2%5% of their annual turnover on IT services delivery. Based on the growth of the IT environment every year a major part of that is spent on running the business, i.e. expenses required just to maintain the current IT environment, while the ability to invest in changing the business projects is reducing every year.

We at New Frontier Group understand that the detailed, down-to-earth work of optimizing the costs of IT are as critical as deploying the newest mobile app. More than 300 professionals are dedicated to delivering efcient IT. From providing virtualized environments to increasing resource utilization and taking over operational responsibility for clients environments, we provide a wide range of capabilities to help CIOs and data center managers do more with less while assuring services delivery. We have centered our activities around three major infrastructure areas: Networking and communi cation infrastructure Computing and storage infrastructure IT services management

VaLUE PrOPOSiTiON fOr OUr CLiENTS BITE

BASED ON tHE GROWtH OF tHE IT ENVIRONMENt EVERY YEAR A MAjOR PARt OF tHAt IS SPENt ON RUNNING tHE BUSINESS.

The business execution area represents around 50% of our total business and we see it as our objective to continue to provide full system integration capabilities for our clients. By being able to provide a onestop-shop experience, as well as acting as a vendor independent-integrator, we provide whatever the client needs for value creation from technology investments.

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SEPTEmbEr

NOVEmbEr

NOVEmbEr

NOVEmbEr

DECEmbEr

DECEmbEr

fEbrUarY

OCTObEr

OCTObEr

AUgUST

2006

2007

2008

2009

2010

2011

2012

2013

marCH

APriL

JULY

MaY

NEW FRONTIER GROUP ANNUAL REPORT 2012 OUr JOUrNEY

Our journey
Thriving to become the leading IT solutions company in CEE & beyond

CHaPTEr II.

In August 2006 we embarked on the (ad)venture to build the leading IT solutions company in our core target territory of the CEE countries, Russia, Turkey and the Middle East. Using an investing, partnership and organic development approach, we have made serial investments over the last 6 years.

REVENUE IN EUR
New Frontier World Wide

2012
194,670,514 -7,768,696 28,962,509 47,550,031 52,767,883 566,005 602,155 16,191,436 55,799,191

2011
150,638,063 -3,545,883 27,690,738 62,876,696 55,544,141 63,591 8,008,780

We have invested in and now have legal representations in 16 countries. For business execution purposes, we have split our go-to-market into 7 business management entities: In 2011/2012, we successfully entered the three strategic markets of Russia, Poland and Turkey. The global expansion of the heavy equipment solutions business through US/Canada is also accelerating. We still see the economic environment as our main challenge for further growth but are condent that we have, with the seven territories, enough addressable market opportunities to maintain our organic target growth rates.

Consolidation effects Centrope (Austria, Czech Republic, Slovakia, Hungary) Black Sea (Romania, Bulgaria) Adriatics Turkey/Middle East Poland US/Canada Russia/CIS

NF Slovakia,
entering

Xapt Pty, Beyond Australia Publishing, Austria Xapt

entering entering expanding

Romania

Slovakia

Optiim,
entering

NF CSB,
entering

Slovenia

Profinit,
entering

Turkey

Czech Republic Slovakia

Xapt,
entering

Creation of New Frontier Holding

Hungary Canada USA

Technoserv Consulting,
entering

NF Poland,
expanding

Poland

Romsys,
entering

Smartupz,
entering

Russia

Romania

Poland

Both Interact,
expanding

Saga,
entering

Austria

Serbia Montenegro Bosnia and Herzegovina Macedonia

Commcord, NF Cloud,
expanding expanding

Poland

Czech Republic

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NEW FRONTIER GROUP ANNUAL REPORT 2012 OUr JOUrNEY

1

Global Talent Map

13 12

Profinit
Member since: 2007 Employees: 200 Core competence: Custom Application Development, Information Management

NF Cloud
Member since: 2012 Employees: 4 Core competence: Virtualization 13

NF Slovakia
Member since: 2007 Employees: 30 Core competence: Information Management, Business Intelligence 12

Czech Republic Slovakia

Czech Republic

New Frontier Group Headquarter

founded: 2006 Employees: 16 1

Slovakia

Technoserv Consulting
1 13 9 5 8 12 10 11 11 Member since: 2012 Employees: 527 Core competence: Application Consulting, Custom Application Development 7 2 3

Austria

Russia

NF Poland Both Interact

Member since: 2013 Employees: 7 Core competence: Performance Marketing 6 Member since: 2012 Employees: 2 Core competence: Headquarter for Poland 10

Poland

Austria

Commcord Beyond Publishing

Member since: 2012 Employees: 2 Core competence: Digital Publishing 1 Member since: 2013 Employees: 36 Core competence: System Integration, Networking 10

Xapt
Member since: 2008 Employees: 169 Core competence: Microsoft Business Solutions, ERP & SCM & CRM 2 3 4 5 6

Saga Optiim NF CSB

Member since: 2012 Employees: 6 Core competence: Online market place 7 8 Member since: 2012 Employees: 8 Core competence: Project Porfolio Management, Collaboration 9 Member since: 2009 Employees: 378 Core competence: System Integration, Application Consulting, Custom Application Development

Poland

Austria

Romsys
Member since: 2007 Employees: 276 Core competence: System Integration, Application Consulting, Custom Application Development 3 10

Smartupz
Member since: 2011 Employees: 10 Core competence: Social collaboration

Hungary Romania US Canada Australia

Turkey

Serbia, Montenegro, Bosnia and Herzegovina, Macedonia

Poland

Slovenia

Romania

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NEW FRONTIER GROUP ANNUAL REPORT 2012 OUr THrEE PiLLar bUSiNESS STraTEgY

grow this by at least our basic organic growth target of 13% in 2013. Adding incremental business in Poland through M&A, our 2013 target is EUR 200 million. As part of our search for excellence, we build our business strategy on few but critical principles: Focus: We believe in a complex world only clear focus enables management, as well as those in the field, to keep driving towards common goals and objectives. Reviewing constantly the focus and resetting it properly is the key. Continuous performance improvements: Progress is only achieved by stretching ourselves to do better. In categories where competitors are leading we take them as the benchmark and try to understand how we can close the gap. In areas where we consider ourselves the leaders, we seek to improve every year against our own prior year performance. This is underlined by clear performance targets in every area earmarked for improvement. Entrepreneurship: Individual accountability, risk taking and empowerment is at the core of our business execution model. We strongly believe this allows us to be closer to our clients and much faster in reacting to market developments.

Our three pillar business strategy

Improving the core, innovating, going global

CHaPTEr III.

Innovating and creating value for our clients New Frontier Innovation
Early in 2013 we created New Frontier Innovation, which serves as the focal management entity for all the major innovation and startup ventures New Frontier Group is undertaking. Several key innovation initiatives are now under way with Optiim (Turkey), NF CSB (Slovenia), Beyond Publishing and Both Interact (Austria), Smartupz (Poland), NF D3 (Serbia), iBanking (Serbia) and Ulympix (Bulgaria), all of which are centered around our Missing Link Solutions approach. We have already won contracts with major global telecom and nancial services players, thus proving that we are heading in the right direction. Our strategic objective is for this business to contribute midterm at least 5% of own software IP to our total revenue, adding therefore signicant differentiation as well as protability to our business.

Using these principles and reviewing our current status as well as our strategic aspirations, we have realigned our go-to-market along three core pillars:

Improving the core New Frontier Solutions

This is our core solutions business in Central and Eastern Europe, Russia, Poland and Turkey. As the economic environment remains challenging, especially in the CEE countries, we continue to focus on operational excellence. We keep investing in clientfacing personnel while working to keep back-ofce organizations stable to accommodate business growth through increased process automation. The group CEO and CFO, working with the local operating company executive teams, dene 12 and 24 month business objectives for execution. In 2012 we achieved revenues in our core business of EUR 170 million and aim to

THIS IS OUR CORE SOLUtIONS BUSINESS IN CENtRAL AND EAStERN EUROPE, RUSSIA, POLAND AND TURKEY.

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NEW FRONTIER GROUP ANNUAL REPORT 2012 OUr THrEE PiLLar bUSiNESS STraTEgY

Taking our heavy equipment solution global XAPT Global Equipment

Based on the success of our NAXT heavy equipment dealer solution in the United States and a key win in 2012 in Australia/Asia, we have decided to take further steps to accelerate the global growth of this business. A subsidiary in Australia was opened and we are investigating other international locations. While the development of the solution remains in Hungary, the plan is to increase the US teams headcount as the global delivery organization. Further R&D budgets were allocated to extend our solution leadership; we tightened our co-operation with Microsoft through an ISV agreement and Caterpillar formally announced our solution as one of three ofcially recommended solutions for CAT dealerships. We nished 2012 revenues of EUR 20 million with a signicant part of own IP (20%) and through our global expansion strategy we are targeting 30%+ organic growth rate for the coming years for the XAPT GE business.

A SUBSIDIARY IN AUStRALIA WAS OPENED AND WE ARE INVEStIGAtING OtHER INtERNAtIONAL LOCAtIONS.

M&A
All three focus areas will continue to use M&A as a strategy to accelerate growth and expand portfolio/capabilities and geographical markets. Overall we continue to focus these activities on our core territory of the CEE countries, Russia, Poland and Turkey with the exception of XAPT GE, which we regard as a worldwide option. We maintain our overall M&A approach rst and foremost to seek partnerships with strong business leaders to help them grow and develop their businesses going forward. This model clearly supports our entrepreneurial business management philosophy and creates value for ourselves and business owners joining New Frontier Group.

XAPT US XAPT Canada XAPT Australia XAPT Hungary XAPT Romania

Profinit NF Cloud NF Slovakia Romsys SAGA

Smartupz Optiim Ulympix Beyond Publishing Both Interact

Technoserv Consulting NF Poland Commcord

NF CSB

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NEW FRONTIER GROUP ANNUAL REPORT 2012 FiNaNCiaL RESULTS 2012

The nancial result includes the exchange rate losses on nancial assets and liabilities held or loaned in foreign currencies, involving an adverse effect of EUR 2.3 million as well as an interest expense of EUR 2.0 million. Together these led a nancial loss of EUR -0.8 million (2011: EUR -4.7 million) New Frontier Group has amajority stake in all the companies in the group and therefore consolidates the financial results according to IFRS. During 2012, New Frontier Group continued to focus on client management and delivery quality as well as investing in innovation and filling up the pipeline with acquisition projects for 2013.

Liquidity and Working Capital December 2012

New Frontier Groups liquidity situation is solid with a stable nancing structure and an above-average equity position of 40%. Long-term credit lines were agreed with existing and new nancial partners, and consist of acquisition nancing and other nancing for long-term investments. Another important aspect of the nancing strategy for the operating companies is to allocate the credit volume to several nancial partners in order to stay independent of individual banks and spread the risk of renancing. The nance managers of our subsidiaries were responsible for controlling liquidity and guaranteeing optimal interest rates. In addition, the banking terms and conditions were continuously monitored and adjusted. The cash position at year end of EUR 26.7 million (2011: EUR 31.6 million) remained strong because of the groups successful working capital management and forms a solid basis for further development, investment and performance. Net debt / EBITDA ratio increased in the year 2012 to 1.08 mainly because of nancial liabilities in TSC.

Consolidated Balance Sheet December 2012

Total assets increased by 7.3% compared with the previous year and amounted to EUR 191.9 million (2011: EUR 178.9 million) as at 31 December 2012. The non-current assets remained at the same level of EUR 73.5 million (2011: EUR 74.2 million). Thanks to good AR management, the accounts receivables were reduced by EUR 5.7 million (9.9%), but at the same time accrued receivables increased by EUR 13.9 million (2011: EUR 0.4 million) owing to TSC having been included in the consolidation. Cash decreased by 15.6%. Inventories increased by EUR 10.0 million because of TSC. Those factors led to an increase of EUR 13.8 million or 13.2% in current assets, from EUR 104.7 million to EUR 118.5 million. The annual average working capital increased slightly from EUR 23.3 million to EUR 26.5 million, while equity increased by EUR 5.3 million.

Financial results 2012

Performing in a challenging market

CHaPTEr IV.

Consolidated Income Statement 2012:

In the nancial year 2012, the revenue increased by 29.2% to EUR 194.7 million (2011: EUR 150.6 million), of which EUR 55.8 million from TSC. Thus, with a share of 28.7%, Russia has become the biggest sales market in terms of turnover. The Black Sea region (24.4%) together with the Adriatic region (27.1%) also remained important sales markets. North Americas share increased further from 5.3% in 2011 to 8.3% in 2012. Cost of goods sold (COGS) decreased from 65.3% of revenue to 52.4%, following the shift of revenue from third party products to our own products. This also explains part of the 85.4% increase in staff costs together with a stronger focus on development and innovation. There was also the acquisition of TSC, which accounted for 69.9% of the increase in staff costs. The operating prot (EBIT) for the nancial year 2012 increased by 40% to EUR 13.0 million (2011: EUR 9.3 million). This increase was reached not only by a signicant increase in operating prot (mostly TSC) but also by focusing on qualitative growth (gross margin, and prot) rather than pure top line growth.

Non-current liabilities increased from EUR 25.7 million to EUR 28.5 million. The main reason for this was the consolidation of TSC with EUR 4.5 million nancial NC liabilities. Also current liabilities increased from EUR 82.0 million to EUR 114.5 million, of which EUR 23 million from TSC.

NEW FRONtIER GROUPS LIQUIDItY SItUAtION IS SOLID WItH A StABLE FINANCING StRUCtURE AND AN ABOVEAVERAGE EQUItY POSItION OF 40%.

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Financial data

Financial data

NEW FRONTIER GROUP ANNUAL REPORT 2012 FiNaNCiaL RESULTS 2012

Revenue Cost of goods Gross margin Own cost capitalized Staff costs OPEX Other operating income Other operating expense EBITDA EBIT Financial income Financial expense Earnings before tax Income tax expense Earnings Revenue per headcount Equity ratio Working capital

CONSOlIDATED INcOME STATEMENT In EUR

2012

2011

194,670,514 150,638,063 -101,927,030 92,743,484 604,853 -58,793,342 -15,979,153 2,598,305 -2,655,640 -98,430,966 52,207,098 722,255 -31,715,058 -10,469,374 3,417,873 -2,643,316

CONSOlIDATED BAlANcE SHEET DEcEMBEr In EUR

2012

2011

Assets Property, plant, equipment Investment properties Goodwill Intangible assets Financial assets Deferred taxes Other non-current assets Non-current assets Inventories Accounts receivable Deferred expenses Accrued receivables Other current assets Cash & equivalents Financial current assets 3,393,944 437,326 53,325,121 5,621,449 8,534,913 2,161,817 3 73,474,574 17,473,450 51,681,148 4,180,444 14,248,951 3,868,808 26,683,236 336,960 118,472,998 191,947,572 2,719,694 1 52,738,356 5,907,809 9,629,110 3,248,564 0 74,243,534 7,458,601 57,352,354 5,189,139 383,367 747,843 31,625,572 1,892,306 104,649,182 178,892,716

18,543,272 11,486,164 -5,502,404 13,040,868 4,243,638 -5,041,856 9 12,242,659 -3,486,274 -2,159,670 9,326,494 3,786,697 -8,479,422 38 4,633,808 -1,109,649

Depreciation and amortization

Financial consolidation process

Current assets Total assets

8,756,385 3,524,158 1,598 1,052

Headcount

Liabilities Equity share capital Reserves Retained earnings Earnings Non controlling interest Equity and reserves Financial non-current liabilities Accounts payable non-current Deferred taxes Provision Other non-current liabilities Non-current liabilities Financial liabilities Accounts payables Provisions, current 1,000,000 10,614,132 24,408,550 5,313,215 7,648,911 48,984,808 27,098,551 426 798,460 551,712 13,134 28,462,283 20,062,709 59,724,463 6,511,643 18,646,790 7,466,324 2,088,552 114,500,481 191,947,572 1,000,000 23,695,580 36,279,702 1,074,564 9,206,354 71,256,200 24,372,941 462 818,166 458,500 0 25,650,069 12,745,455 45,152,970 2,497,750 10,757,332 10,417,915 415,026 81,986,447 178,892,716

LIQUIDITY AND WOrKING CAPITAl DEcEMBEr

Other current liabilities

2012
121,821 39.86% 31,505,675

2011
143,192 39.83% 22,662,735

Deferred income Accrued liabilities Current liabilities Total liabilities

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NEW FRONTIER GROUP ANNUAL REPORT 2012 KEY HigHLigHTS Of 2012 / OUTLOOK 2013

Key highlights of 2012

As a major highlight of the year 2012 we want to emphasize the successful integration of Technoserv Consulting (TSC) in Russia, which is now our largest contributing operation in terms of revenue and prot. We also concentrated across all companies on adapting our mix towards more software and services and less reselling of third party products. The improvement in operating margin (from 34% in 2011 to 47% in 2012) clearly underlines this change in the business mix and resulted in our EBIT prot growth of 40%. On the contracting side, the major win of XAPT GE in Australia with a multi-billion dollar industrial conglomerate is worthwhile emphasizing as it was a major step towards the global expansion of this business.

CHaPTEr V.

Global expansion of our business

Outlook 2013

CHaPTEr VI.

Considering the next key milestone

tHE SUCCESSFUL INtEGRAtION OF TECHNOSERV CONSULtING (TSC) IN RUSSIA.

In 2013 we move into our 7th full year of operations. In 2012 we came very close to meeting our dened business objectives (revenue of EUR 195 million versus goal of EUR 200 million and EBITDA ration of 9.5% versus goal of 10%). In 2013 we plan to reach top line revenue of around EUR 220 million organically and maintain our overall EBITDA margin target at 10%. Additional prot will be reinvested in our M&A and innovation strategy as well as in expanding our client-facing capabilities. We expect the economic headwinds to continue to blow against us, especially in the core CEE countries, such that incremental growth will again have to be achieved by taking market share from competitors. We target accelerated growth from our Russian consulting and global heavy equipment business and count on offsetting potential short-term setbacks in countries such as Hungary and Romania remaining under pressure against that. With our three pillar strategy we have set the scene for the coming years and are condent of sustaining our protable growth path.

IN 2013 WE MOVE INtO OUR 7tH FULL YEAR OF OPERAtIONS.

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NEW FRONTIER GROUP ANNUAL REPORT 2012 WE CarE

We care ...
... about the world & about you

CHaPTEr Vii.

We care about you, our clients & business partners!

Even in our high-tech world, what matters most to us are the people we work with and the relationships we have with our customers, business partners, shareholders, with you! Based on our geographical coverage across 16 countries and the size of our operations,we now serve major local as well as global players in all key industries (Financial Services, Telecom, Public&Health, Industry&Manufacturing, Retail, Transportation & Services, Energy & Utilities). www.newfrontier.eu/survey In order to understand better where and how we need to change and to improve our client services we have, in the online version of this annual report, included a detailed online survey with questions ranging from sales/presales through project delivery to post-project support. Only with candid and open feedback are we able to tackle critical client satisfaction topics. We would like to thank you, here and now, for the time you take to provide us with your valuable feedback.

You can help, too

In line with our aim to support the program Water for the World TM, we will donate 10 EUR for every feedback form delivered to us! Be part of our CSR program and help us help the world ! All you need to do is to follow this QR code, take 5 minutes out of your busy day and complete our online questionnaire.

We care
As New Frontier Group we are ambitious to uphold our responsibility as a corporate citizen. Throughout the organization, we strive to create a workplace for our more than 1600 employees that focuses on talent and skill development, encourages continuous learning and embraces diversity, equality and respect. Above this, we recognize our corporate responsibility by serving and supporting the communities in which we operate.

We care about the world

Even in our modern world, 780 million people still lack access to clean water, an estimated 2,5 billion people are without improved sanitation.* Without water, life could not exist. In the developed world, we often take access to safe water for granted. We sometimes do not realize how important it really is for nearly all aspects of our daily lives: health, food, energy, transportation, As New Frontier Group we are committed to be a contributing, socially responsible member of the communities we do business in, and beyond. This year, we chose the program Water for the World TM (www.waterfortheworld. net) to give back and make our contribution for a better world.

Branislav Vujovic
President, New Frontier Group

Gnther Meyringer
Chief Executive Ofcer, New Frontier Group

*

WHO/UNICEF Joint Monitoring Programme (JMP) for Water Supply and Sanitation. (2012). Progress on Sanitation and Drinking-Water, 2012 Update.

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NEW FRONTIER GROUP ANNUAL REPORT 2012 OVErViEw NEw FrONTiEr GrOUP

Czech Republic

PrOFiNit S.r.O.
Tychonova 2, 160 00 Praha 6

Slovak Republic

NEw FrONtiEr SlOvakia S.R.O.

Mlynsk Nivy 54, 821 09 Bratislava

Bulgaria

UlYmPiX LtD.
4 Gen. Yosif V. Gurko, 2nd oor Sredets Region, 1000 Soa

Overview New Frontier Group

Group entities at a glance

CHaPTEr VIII.

Czech Republic Austria

NF ClOUD, S.r.O.
Tychonova 270/2, 160 00 Praha 6

Hungary

BEYOND PUBliSHiNg GmBH

Entenplatz 1, 8020 Graz

Romania Austria

XAPT HUNgarY SZOFtvEr TaNcSaD KFt.

Rtkz u 7., 1118 Budapest

ROmSYS SRL
12 Menuetului Street, D Building, sector 1, Bucharest Business Park, Bucharest

BOtH INtEract GmBH

Lendplatz 40, 8020 Graz

Canada

Serbia Slovenia

XAPT BUSiNESS SOlUtiONS LtD.

8187 Yonge Str., Suite 323 Thornhill, ON L3T, Ontario

SAGA D.O.O.
Ulica Milentija Popovica 9, Belgrade

NF CSB D.O.O.
Korpska ul. 88, 1000 Ljubljana

USA Montenegro Poland

XAPT COrPOratiON
6303 Blue Lagoon Drive, Suite 400 Miami FL 33126, Florida

Saga CG D.O.O.
Sv. Petar Cetinjski 1a, Podgorica

NF POlaND SP. Z O.O.

ul. Grzybowska 8082, 00-844 Warszawa

Macedonia Poland

Australia

Saga MK D.O.O.E.l
Orce Nikolov 75, Skopje

XAPT SOlUtiONS PtY LtD.

Level1, 25 Montpelier Road Bowen Hills, QLD 4074 Queensland

COmmcOrD SP. Z O.O.

ul. Hoffmanowej 19, 35-016 Rzeszw

Republic of Srpska Turkey

Saga RS D.O.O.
Vozdovacka 1, Banja Luka

Romania

OPtiim IS ZmlEri A.S .

Sk Akasya 7 Villa L22 Bahcesehir, Istanbul

XAPT BUSiNESS SOlUtiONS, S.R.L.

12, Menuetului St., Business Park Building D, District 1 013713 Bucharest

Poland Turkey

SMARTUPZ SP. Z.O.O.

ul. Grzybowska 8082, lok.121 00-844 Warszawa

OPtiim YaZlm HiZmEtlEri A.S .

Astas Is Merkezi Atatrk Bulvari Begonya Sok. No.56 Zemin K.N.6, atalca, Istanbul

Russian Federation

TEcHNOSErv CONSUltiNg LLC

Valovaya Street, House 8, Building 1 115054 Moscow

Russian Federation

BI TElEcOm CJSB
5 Kashirskoye High-road, Building 1 115230 Moscow

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