IBS Group Reports Operating Results for the Second Quarter and Six Months Ended September 30, 2012

  IBS Group Reports Operating Results for the Second Quarter and Six Months
                           Ended September 30, 2012

  PR Newswire

  RAMSEY, the Isle of Man, November 29, 2012

RAMSEY, the Isle of Man, November 29, 2012 /PRNewswire/ --

  Please refer to the relevant legal information at the end of this document

IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software development
and IT services provider in Central and Eastern Europe, today announced its
preliminary unaudited operating results for the second quarter and six months
ended September 30, 2012 (2Q and 1H FYE March 31, 2013) .

1H FYE March 31, 2013 highlights

  *Consolidated revenues totaled US$378.0 mn, a 6.0% increase y-o-y, driven
    by a pickup in activity in both segments.
  *Revenues in the IT Services segment increased by 1.8% in US$ terms and
    12.4% in Russian ruble terms, whereas revenues in the Software Development
    segment saw a 13.5% increase in US$ terms.
  *Revenues generated in Europe and North America amounted to US$137.4 mn,
    and now account for 36.3% of consolidated Group revenues against 34% a
    year ago.
  *Total headcount rose to 8,372employees, an increase of 7.1% y-o-y; mostly
    due to an increase of IT professionals in the Software Development
    segment.
  *Total debt amounted to US$67.4 mn, a decline of US$4.3 mn y-o-y; the net
    debt position didn't change significantly from the previous year.
  *Consolidated revenues growth guidance for FYE March 31, 2013 has been
    updated to be in the range of 9-13%.

Consolidated revenues by segment *

                                         2Q           1H    1H
                                        FYE          FYE   FYE
                               2Q FYE March        March March
                            March 31,   31, Change   31,   31, Change
    US$ mn                       2013  2012  y-o-y  2013  2012  y-o-y

    Consolidated revenues       212.6 180.0  18.1% 378.0 356.6   6.0%
    IT Services segment         122.3  97.7  25.2% 200.8 197.3   1.8%
    IT Services segment,                  2            6     5
    RUB mn                    3 876.9 997.0  29.4% 376.8 672.3  12.4%
    Software Development
    segment                      74.1  66.1  12.1% 145.1 127.9  13.5%
    Corporate,
    eliminations, and other      16.2  16.2     0%  32.1  31.4   2.2%

* Source: management accounts.

Consolidated revenues for the second quarter of FYE March 31, 2013 amounted to
US$212.6 mn, an increase of 18.1% y-o-y driven by solid performance in both
segments. Consolidated revenues for the first half of FYE March 31, 2013 came
to US$378 mn, an increase of 6.0%  y-o-y.

IT Services segment revenues for the first half of FYE March 31, 2013 amounted
to US$200.8 mn, representing an increase of 1.8% y-o-y. Ruble revenues for the
same period totaled RUB 6,376.8 mn, up 12.4% y-o-y. OOO Borlas Group's
revenues, disposed in February 2012, amounted US$18.9 mn in the first half of
FYE March 31, 2012. Adjusted to account for the disposal of OOO Borlas Group,
the segment's revenues in Russian rubles increased by 24.4% y-o-y in the first
half of FYE March 31, 2013. The increased number of IT infrastructure projects
was the key driver behind revenue growth in the segment during the reported
period.

Software Development segment revenues during the first half of FYE March 31,
2013 rose to US$145.1 mn, an increase of 13.5% y-o-y. Automotive&transport and
financial services verticals showed the fastest growth in the reported period.
The segment's revenues in constant currency* increased by 17.5% and 19.6%
y-o-y respectively in the second quarter and first half of FYE March 31, 2013.

* Constant currency revenues are calculated based on a weighted average of
actual daily exchange rates for previous periods.

Consolidated revenues by geography *

                                  1H FYE   Share             Share   Change
                                   March      of    1H FYE      of       in
                                     31,   total March 31,   total absolute
    US$ mn                          2013 revenue      2012 revenue   result
    Revenues generated in Russia
    and the CIS                    240.6   63.7%     235.3   66.0%     2.3%
    Revenues generated in Europe    70.1   18.5%      64.1   18.0%     9.4%
    Revenues generated in North
    America                         67.3   17.8%      57.2   16.0%    17.7%

* Source: management accounts, customer geography determined based on the
location of clients' key decision maker.

Revenues from Russian operations totaled US$240.6 mn, representing an increase
of 2.3% y-o-y. During the same period, revenues generated in Europe totaled
US$70.1 mn, an increase of 9.4% y-o-y, and now account for 18.5% of the
Group's revenues. Revenues in North America rose to US$67.3 mn, up 17.7% y-o-y
and now account for 17.8% of the Group's revenues. The progress in Europe and
North America is attributable to business growth in the Software Development
segment.

Headcount *

                         September September Change June 30,  Change
    Number of employees   30, 2012  30, 2011  y-o-y     2012   q-o-q
    Group headcount          8 372     7 817   7.1%    8 363    0.1%
    IT Services segment      2 456     2 560  -4.1%    2 526   -2.8%
    Software Development
    segment                  5 568     4 936  12.8%    5 528    0.7%
    Corporate and other        348       321   8.4%      309   12.6%

* Source: management accounts.

The Group's total headcount amounted to 8,372employees, an increase of 7.1%
y-o-y, mainly due to the expansion of delivery centers in the software
development segment. In the IT Services segment, we disposed Expertek in July
2012 (former IT Services subsidiary focused on niche solutions for retail
business) which further decreased the number of IT professionals q-o-q to
2,456. No significant change in the segment's number of employees is expected
before the end of the fiscal year. In the Software Development segment, the
number of employees amounted to 5,568, an increase of 12.8% y-o-y, we expect
headcount to resume growth by the end of the fiscal year.

Debt *

                                                      June    Change
                        September September Change     30,
    US$ mn               30, 2012  30, 2011  y-o-y    2012     q-o-q
    Total debt               67.4      71.7   -4.3    62.4       5.0
    Current debt             45.8      48.0   -2.2    42.0       3.8
    Non-current debt         21.6      23.7   -2.1    20.4       1.2
    Net debt                 53.7      53.0    0.7    40.9      12.8

* Source: management accounts.

The Group's total debt decreased by US$4.3 mn y-o-y to US$67.4 mn. Over the
last quarter the Group's debt position increased by US$5.0 mn, and the net
debt position increased by US$12.8 mn - both are attributable to the
short-term seasonal working capital financing of IT Services segment.

Full year revenues outlook

We have updated our outlook for the Group's consolidated revenues growth,
which is now expected to be in the range of 9-13% in USD terms. In the IT
Services segment revenues growth is expected to be in the range of 6-10% in
US$ terms, and we add revenues growth outlook for the segment in ruble Russian
terms to be in the range of 13-17%. In the Software Development segment we
expect revenues growth to be in the range of 16-21% in US$ terms.

Anatoly Karachinsky, President of IBS Group commented ,

"IBS Group has met its targets and performed according to expectations in the
preliminary forecasts for the first half of the year. As such, we can view
these results as positive. This year has brought robust growth in the IT
Services segment. Turnover in rubles for the segment has grown by more than
24% y-o-y, after factoring in the disposal of part of the business last year.
The growth in this segment mainly stems from our success in bringing new
solutions to the Russian market during implementation of IT infrastructure
projects, including cloud technologies and Big Data. The Software Development
segment has also grown rapidly owing to our continuing success in financial
and automotive verticals. Overall, the outcomes have been affected by the
global economic instability, especially fluctuations in the currency markets.
This is reflected in our updated growth forecasts of 9-13% for the Group's
turnover in the current financial year."

About IBS Group Holding Limited

IBS Group is a leading software development and IT services provider in
Central and Eastern Europe. Through its two principal subsidiaries, Luxoft and
IBS IT Services, it offers a wide variety of information technology services,
such as software development and IT services outsourcing, IT infrastructure
and business applications implementation. IBS Group has business operations in
Russia, Ukraine, Romania, Poland, Germany, Switzerland, the UK, the USA,
Vietnam and Singapore. IBS Group employs more than 8,300 people worldwide. In
the year ended March 31, 2012, the Group reported US GAAP consolidated
revenues of US$816.3 million. IBS Group's Global Depositary Receipts are
listed on the Regulated Market (General Standard) at the Frankfurt Stock
Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.F)

http://www.ibsgr.com

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Contact: For more information about IBS Group please visit
http://www.ibsgr.com or contact Investor Relations: Andrei Novikov, IR
Director, tel: +7(495)967-8000 (ext.3095), anovikov@ibs.ru; Media Relations:
Ekaterina Beskhizhko, PR Manager, tel: +7(495)967-8080 (ext.2363),
ebeshizhko@ibs.ru
 
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