2011 half-year report

Transcription

1 2011 half-year repor

2 CONTENTS Saemen by he person responsible for he half-year financial repor 3 Managemen repor 4 A. Consolidaed key figures 5 B. Commens as of June 30, C. Group srucure 10 Consolidaed financial saemens 11 A. Saemen of consolidaed comprehensive income 12 B. Saemen of consolidaed financial posiion 14 C. Saemen of consolidaed cash flows 16 D. Saemen of changes in consolidaed equiy 18 E. Noes o he consolidaed financial saemens 19 2 I 2011 half-year repor

3 STATEMENT BY THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT To he bes of my knowledge, he financial saemens for he half-year ended June 30, 2011 have been prepared in accordance wih he applicable se of accouning sandards and give a rue and fair view of asses, liabiliies, financial posiion and profi or loss of he company and he underakings included in he consolidaion as a whole, and he inerim managemen repor appended hereo gives a fair presenaion of imporan evens ha have occurred during he firs six monhs of he financial year, of heir impac on he financial saemens, and of major relaed pary ransacions, ogeher wih a descripion of he principal risks and uncerainies for he remaining six monhs of he financial year. Augus 31, 2011 Chairman of Jean-Louis Bouchard 3 I 2011 half-year repor

4 Managemen repor 4 I 2011 half-year repor

5 Managemen repor A. CONSOLIDATED KEY FIGURES (in millions) Key figures (unaudied) H H Revenue by aciviy Managed Services Producs and Soluions IT Financial Services Telecom Services Recurring operaing profi (before amorisaion of ECS porfolio) Recurring operaing profi Operaing profi Profi for he period, excluding non-conrolling ineress Operaing cash flow (1) Equiy Ne cash and cash equivalens (112.9) 18.3 Earnings per share ( ) Earnings per share ( ) Dilued earnings per share ( ) (1) Operaing cash flow before ineres and axes H H Number of shares 26,172,897 22,411,651 Share value as of June 30 ( ) Marke capializaion as of June 30 (in millions) I 2011 half-year repor

6 Managemen repor The highligh of 2010 was he acquisiion of ECS Group, consolidaed in he Group financial saemens since Ocober 1 s In he firs half of 2011, he Group oally reimbursed he bank loan ( 132 million) as well as he equiy bridge ( 40 million) conraced for his acquisiion. In he firs semeser of 2011, Group posed a consolidaed revenue of million compared o million for he firs semeser of The good business rend and he firs synergies resuling from he inegraion of ECS led o a sharp rise in recurring operaing profi, which climbed o 18.6 million before a 1 million amorisaion of he ECS porfolio, versus 10.7 million for he same period las year. The Group benefied from he complemenary naure of he wo groups, paricularly in erms of geographic locaion, cusomer porfolios and areas of experise, as well as from he growing success of he Group s enerprise soluions offering, which combines he Group s experise in every field o opimize business and operaing synergies. largely impaced by he financial ineress paid o he banks on he ECS acquisiion deb and by he financial resrucuring coss linked o he acceleraed reimbursemen of his bank deb (which has been oally reimbursed before June 30, 2011). On he oher hand, a converible noe was issued in May 2011 for a gross value of 84 million. Ne profi on firs-half 2011 sands a 2.7 million, impaced by non-ax-deducible iems. The effecive ax rae for he period, excluding non-recurren iems, is 31.4%, compared o 30.6% a June 30, Group furher srenghened is financial posiion wih shareholders equiy reaching million a he end of June 2011, compared o 91.2 million one year ago and million on December 31, Ne deb (ne of cash) amouns o million on June 30, 2011, versus a posiive figure of 18.3 million as of June 30, The ne deb on June 30, 2011 is composed of: The Group s operaing profi over he firs semeser 2011 is 12.8 million, compared o 9.3 million in he six monhs o June 30, The non-recurring expenses correspond o he operaional resrucuring coss (amouning o 4.8 millions) incurred on he ECS acquisiion during he firs semeser. The financial resul of he period (a cos of 7.4 million versus 0.3 million for he firs semeser 2010) is Financing of working capial needs and oher deb Financing of ECS acquisiion (converible loan + shareholder loan) Recourse refinancing deb of lease conracs 1.9M ( 87.6M) ( 27.2M) 6 I 2011 half-year repor

7 Managemen repor B. COMMENTS AS OF JUNE 30, Scope of consolidaion There was no major change in he scope of consolidaion in he firs half of Resuls 2.1. Goodwill No impairmen of goodwill was recorded in he six monhs o June 30, Goodwill can be broken down as follows: (in millions) Goodwill Ne value as of June 30, 2011 Acquisiion dae ECS Daabail Alliance Suppor Services SA The Phone House Kenron SAS Tecnolease SPA Albis GmbH Avenir Telecom JCA A2Z Holding For Conneced BV Signal Service SA CHanSE SA /2006 Oher o 2003 Toal I 2011 half-year repor

8 Managemen repor 2.2. Key figures by business Consolidaed revenue, excluding inragroup operaions, can be analyzed as follows: (in millions) H H Managed Services Producs and Soluions IT Financial Services Telecom Services Toal The conribuion of each business o recurring operaing profi is as follows: (in millions) H H Managed Services (1.2) 1.8 Producs and Soluions IT Financial Services Telecom Services Non allocaed coss (0.8) (1.1) Toal before amorisaion of ECS porfolio Amorisaion of ECS porfolio (1.0) - Toal afer amorisaion of ECS porfolio Managed Services slighly increased is revenue, on a comparable basis, compared o he firs semeser 2010, bu is profi has been impaced by some price renegoiaions and by imporan invesmens made in he Ousourcing business line. Producs and Soluions has srongly grown, wih revenue growh of 17%, as well as a larger order book and a higher profiabiliy compared o he same period las year. IT Financial Services srongly benefied from he acquisiion of ECS revenue as well as profi wise. Telecom Services is sable compared o he firs semeser 2010 in erms of revenue and profiabiliy. 8 I 2011 half-year repor

9 Managemen repor 3. Oulook The Group s Managemen anicipaes ha 2011 will be anoher year of growh on a consan group srucure basis and confirms is global 2011 arge of a 1.4 billion revenue and 56 million of recurring operaing resul. 4. Risk facors and dispues To s knowledge, since he publicaion of he 2010 annual repor, no risk facors (excep marke facors) or new dispues have been idenified ha could, aken individually or concurrenly, have a maerial impac on he resuls, financial posiion or asses of he company or he Group. 5. Relaed paries There has been no major change regarding relaed paries since he publicaion of he 2010 annual repor. 6. Human resources The Group had 3,619 employees as of June 30, 2011, compared wih 3,664 as of December 31, Share value and ownership srucure The share value increased by 52% over he firs six monhs of he year, o sand a on June 30, Since hen, he share value has flucuaed due o he marke condiions o sand a approximaely 13 as a oday. Ownership srucure as of June 30, 2011 : June 30, 2011 December 31, 2010 % of capial Number of shares % of capial Number of shares Companies conrolled by Jean-Louis Bouchard 49.10% 12,849, % 12,845,194 Sociéé Générale 7.05% 1,845, % 2,727,273 Besinver Gesion 12.28% 3,214, % 3,709,679 Valges - V. Wajs 4.60% 1,202, % 1,237,608 Treasury sock 3.86% 1,009, % 175,828 Public shareholders 23.12% 6,051, % 5,477,315 Toal 26,172,897 26,172,897 9 I 2011 half-year repor

10 Managemen repor C. GROUP STRUCTURE Group SA/NV Financial Services Inernaional BV Nederland BV Managed Services BV Locaion SAS 44,4% Managed Services SA/NV 22,6% 93,57% 33% SAS 50% 50% Finance SNC Luxembourg SA Lease SA/NV Producs & Soluions SAS Alance SA/NV Locazione Ialia SpA 41,67% GIE 6,43% 58,33% Alance France SAS 25% 25% Enerprise Soluions 25% 25% Synopse SAS Maroc Sarl Managed Services SAS Asysel SAS 84,66% Telecom Services SAS Alliance Suppor Services SAS 88% Europe Compuer Sysèmes SA ECS Inernaional Corporaion ECS Deuschland Holding GmbH ECS Inernaional España SAU ECS Luxembourg SA ECS Inernaional Polska Sp. z.o.o ECS Slovakia S.r.o ECS Inernaional Romania SA Europe Compuer Sysems (Shanghai) Co. Ld ECS Inernaional Ialia SPA ECS Unied Kingdom Plc ECS Inernaional Belgium SA/NV ECS Inernaional Neherlands BV ECS Inernaional Czech Republic S.r.o ECS Inernaional Swizerland SA ECS Inernaional Maroc SA 51% 49% Wanlease Ialia SPA High Technology Finance Ld Ficoren SA ECS Inernaional Deuschland GmbH ECS Technoservice Soluions AG PSF SA A2Z Holding NV 50,10% Exper Inernaional Holding BV Producs & Soluions Belux SA/NV 90% GmbH UK Ld SA Espagne A2Z Soluions BV Daa Neworks France EURL Services GmbH 10 I 2011 half-year repor

11 Consolidaed financial saemens 11 I 2011 half-year repor

12 A. STATEMENT OF COMPREHENSIVE INCOME Income saemen (in housands) H H Revenue from coninuing operaions 763, ,250 Operaing expenses (746,143) (350,508) Cos of sales (576,568) (260,983) Personnel coss (108,366) (55,824) Exernal expenses (48,860) (31,029) Depreciaion, amorisaion and provisions (4,518) (1,276) Taxes (oher han income axes) (5,783) (2,035) Impairmen losses on curren asses, ne (1,297) (198) Oher operaing income and expenses (284) 595 Financial income, operaing aciviies (467) 242 Recurring operaing profi 17,576 10,742 Oher non-recurring operaing income and expenses (4,793) (1,466) Operaing profi 12,783 9,276 Financial resul (7,415) (324) Profi before ax 5,368 8,952 Income ax (2,689) (2,742) Profi from coninuing operaions 2,679 6,210 Income from equiy associaes 40 Consolidaed ne profi 2,719 6,210 Minoriy ineress 2 2 Ne profi excluding minoriy ineress 2,721 6, I 2011 half-year repor

13 Comprehensive income saemen (in housands) H H Consolidaed ne profi 2,719 6,210 Adjusmens o he fair value of financial insrumens and oher financial asses Changes in acuarial gains/losses (707) 583 Acuarial gains / losses on employee benefis 28 (135) Taxes relaing o oher comprehensive income iems (13) 45 Toal oher comprehensive income (626) 797 Toal comprehensive income for he period 2,093 7,007 Aribuable o he Group 2,095 7,009 Aribuable o minoriy ineress (2) (2) Basic earnings per share Dilued earnings per share I 2011 half-year repor

14 B. STATEMENT OF CONSOLIDATED FINANCIAL POSITION Asses (in housands) June 30, 2011 December 31, 2010 revised June 30, 2010 Non-curren asses Ne inangible asses 50,236 51,661 3,488 Goodwill 136, ,831 31,225 Ne propery, plan and equipmen 12,502 13,469 8,153 Long-erm invesmens 34,707 33,113 23,122 Long-erm receivables 2,050 2,265 2,168 Deferred ax-asse 41,492 43,394 9,057 Toal non-curren asses 277, ,733 77,213 Curren asses Invenories 19,470 16,253 9,534 Trade and oher receivables 515, , ,845 Curren ax asses 9,436 8,970 1,819 Oher curren asses 65,293 57,997 8,008 Cash and cash equivalens 71, ,873 58,245 Toal curren asses 680, , ,451 Toal balance shee - asses 958,608 1,246, , I 2011 half-year repor

15 Equiy and Liabiliies (in housands) June 30, 2011 December 31, 2010 revised June 30, 2010 Share capial 17,077 17,077 16,181 Addiional paid-in capial and reserves 103,080 79,736 68,753 Profi for he year 2,721 28,778 6,212 Toal consolidaed equiy 122, ,591 91,146 Minoriy ineress Toal equiy 122, ,657 91,244 Non-curren liabiliies Financial debs 82, ,815 19,555 Provisions Provisions for pensions and oher commimens 12,315 11,689 5,457 Oher liabiliies 2,164 2,276 1,103 Deferred axes-liabiliies 34,961 34,351 6,347 Toal non-curren liabiliies 132, ,581 32,913 Curren liabiliies Financial debs 106, ,764 22,495 Provisions 24,872 25,524 5,874 Income ax liabiliies 3,530 12,437 2,840 Trade and oher payables 509, , ,624 Oher curren liabiliies 58,837 70,312 21,674 Toal curren liabiliies 702, , ,507 Toal balance shee - equiy and liabiliies 958,608 1,246, , I 2011 half-year repor

16 C. STATEMENT OF CONSOLIDATED CASH FLOWS (in housands) H H Consolidaed ne profi 2,719 6,210 Resul from associaes (40) Depreciaion of propery, invesmen propery, plan and equipmen/amorisaion of inangible asses 5,025 1,558 Impairmen of non-curren financial asses Impairmen of rade receivables, invenories and oher curren asses Gains / losses on he disposal of propery, plan and equipmen and inangible asses Non recurring impac of indirec fees for he financing of ECS acquisiion 3, (112) Non recurring impac of ineress aken in TRO conracs Non recurring impac of sale of invesmens Change in provisions (1,245) 109 Income and expenses relaed o equiy-based paymen 473 1,775 Cash flows from operaing aciviies afer cos of ne deb and income ax 10,274 9,738 Income ax expense 3,118 2,742 Cos of ne deb 3, Cash flows from operaing aciviies before cos of ne deb and income ax (a) 17,102 13,011 Change in invenories (3,950) (3,052) Change in long-erm receivables (35) (446) Change in curren receivables 114,250 (18,631) Change in rade payables (163,327) 20,745 Change in oher curren asses 48,222 Change in oher shor-erm payables (70,678) (17,643) Change in working capial (b) (75,518) (19,027) Income ax paid (c) (9,576) (1,424) 16 I 2011 half-year repor

17 (in housands) H H Ne cash provided by operaing aciviies (a+b+c=d) (67,992) (7,440) Acquisiion of propery, plan and equipmen and inangible asses, excluding he leasing business Disposal of propery, plan and equipmen and inangible asses, excluding he leasing business Acquisiion / Disposal of propery, plan and equipmen allocaed o he leasing business (2,651) (2,812) 60 1,738 (62) 753 Acquisiion of financial asses (5,222) (1,380) Disposal of financial asses 2, Acquisiion of companies and businesses, ne of cash acquired (193) (2,642) Ne cash used in invesing aciviies (e) (5,220) (3,492) Increase in equiy from financing insrumens 3,286 Increase in non-curren liabiliies 80, Repaymen of non-curren liabiliies (124,114) (1,747) Increase in curren liabiliies 33,007 10,810 Repaymen of curren liabiliies (54,103) (815) Ineres paid (3,710) (531) Acquisiions and sale of reasury sock 450 4,829 Dividends paid during he year (8,590) (6,851) Ne cash used in financing aciviies (f) (73,307) 6,214 Impac of changes in exchange raes (186) 441 Change in cash equivalens (d+e+f) (146,705) (4,277) Cash posiion a beginning of he period 217,873 62,522 Change in cash posiion during he period (146,705) (4,277) Cash posiion a end of he period 71,168 58, I 2011 half-year repor

18 D. STATEMENT OF CHANGES IN CONSOLIDATED EQUITY (in housands) Number of shares Share capial Addiional paid-in capial Treasury sock Reserves Ne income and expense recognized direcly in equiy Consolidaed equiy Minoriy ineres Equiy of he consolidaed eniy Balance as of December 31, 2010 revised 26,172,897 17,077 69,244 (16,011) 56,718 (1,437) 125, ,657 Share-based paymens Purchase and sales of reasury shares Cancellaion of reasury shares Dividends paid (8,813) (8,813) (8,813) Oher ransacions wih shareholders Sub-oal of ransacions wih shareholders ,286 3, , (8,464) 0 (4,808) 0 (4,808) Consolidaed ne profi 2,721 2,721 (3) 2,718 Oher comprehensive income iems Sub-oal of oal comprehensive income (626) (626) 30 (596) ,721 (626) 2, ,122 Balance as of June 30, ,172,897 17,077 72,530 (15,641) 50,975 (2,063) 122, ,971 Balance as of December 31, ,800,000 16,181 55,038 (16,829) 28,720 1,421 84, ,603 Share-based paymens 2,277 2,277 2,277 Purchase and sales of reasury shares Cancellaion of reasury shares 4,326 4,326 4, Dividends paid (6,944) (6,944) (6,944) Oher ransacions wih shareholders Sub-oal of ransacions wih shareholders (53) (53) 28 (25) 0 0 4,326 (4,720) 0 (394) 28 (366) Consolidaed ne profi 6,212 6,212 (2) 6,210 Oher comprehensive income iems Sub-oal of oal comprehensive income , ,009 (2) 7,007 Balance as of June 30, ,800,000 16,181 55,038 (8,177) 31,704 3,015 97, , I 2011 half-year repor

19 E. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Accouning policies 1.1. Declaraion of compliance and basis of preparaion The condensed consolidaed financial saemens for he six monhs ended June 30, 2011 have been prepared in accordance wih IAS 34 (Inerim Financial Reporing). They include he minimum conen and disclosures defined in IAS 34, and consequenly should be read in conjuncion wih he audied consolidaed financial saemens for he year ended December 31, 2010 as published in he 2010 annual repor. The consolidaed financial saemens of he group include he financial saemens of Group SA/NV and is subsidiaries. They are presened in housands of euros ( housand). They were adoped by he Board of Direcors on Augus 31, 2011 and have no been subjec o a limied review by he sauory audiors New and amended accouning sandards and inerpreaions New sandards, amendmens and inerpreaions effecive wihin he European Union which are mandaorily applicable o, or may be early adoped in, period beginning on or afer January 1, In preparing is condensed financial saemens for he six monhs ended June 30, 2011, he Group applied he same sandards, inerpreaions and accouning policies as hose used in he preparaion of is consolidaed financial saemens for he year ended December 31, 2010, plus he new sandards, amendmens and inerpreaions applicable from January 1, 2011 as described in he able below. As of June 30, 2011, he Group decided no o apply any of he pronouncemens issued by he IASB and endorsed by European Union ha companies may elec o early adop wih effec from January 1, Applicaion dae Sandards/Inerpreaion UE (1) Group Group impacs IAS 24 revised Relaed paries disclosure Jan. 1, 2011 Jan. 1, 2011 No impac on he financial saemens Improvemens o IFRS Classificaion of righs issues Jan. 1, 2011 Jan. 1, 2011 No impac on he financial saemens IFRS 1 revised IFRIC 19 IFRIC 14 Firs-ime adopion of IFRS IFRS 7 exempions Exinguishing liabiliies wih Equiy insrumens IAS19 Minimum funding requiremens July 1, 2010 Jan. 1, 2011 No impac on he financial saemens unless a business combinaion occurs July 1, 2010 Jan. 1, 2011 No impac on he financial saemens Jan. 1, 2011 Jan. 1, 2011 No impac on he financial saemens (1) Unless oherwise specified, applicable o accouning period beginning on or afer he dae indicaed in his column. 19 I 2011 half-year repor

20 Sandards, amendmens and inerpreaions published by he IASB bu no ye adoped by he European Union Sandards/Inerpreaion IASB effecive dae (1) Expeced impac on he Group IFRS 7 Financial insrumens derecogniion July 1, 2011 No impac on he financial saemens IFRS 1 Amendmen Hyperinflaion and removal of fixed daes July 1, 2011 No impac on he financial saemens AS12 Deferred Tax: Recovery of Underlying Asses January 1, 2012 No impac on he financial saemens IFRS 9 Financial insrumens January 1, 2013 Canno ye be esimaed (1) Unless oherwise specified, applicable o accouning period beginning on or afer he dae indicaed in his column Changes in accouning policy Group has no made any changes in accouning policy during 2011 o dae oher han hose required o comply wih new or amended IFRS requiremens applicable on or afer January 1, Changes in presenaion Changes in presenaion and reclassificaions are made when hey provide informaion ha is reliable and more relevan o users of financial saemens and he revised srucure is likely o coninue, so ha comparabiliy is no impaired. If he effec of a change in presenaion is regarded as maerial, comparaive informaion mus also be reclassified. No maerial changes in presenaion have been made in he condensed consolidaed financial saemens Use of esimaes Preparaion of condensed consolidaed financial saemens requires he Group o make various esimaes and use assumpions regarded as realisic or reasonable. Evens or circumsances may resul in changes o hese esimaes or assumpions, which could affec he value of he Group s asses, liabiliies, equiy or ne profi. The principal accouning policies requiring he use of esimaes are: impairmen of goodwill, measuremen of provisions. As of he dae on which he condensed consolidaed financial saemens were examined by he Board of Direcors, managemen believes ha as far as possible, hese esimaes incorporae all informaion available o i Seasonal rends Inerim ne sales and income from operaions are highly seasonal due o a high level of aciviy during he las quarer of he year. Pursuan o he IFRS accouning principles, inerim ne sales are accouned for under he same principles as year-end ne sales. 2. Significan changes in he scope of consolidaion There were no significan changes in he scope of consolidaion during he firs half of Changes in opening According o IFRS 3, he Group has reviewed he allocaion of asses and liabiliies of ECS Group. A closer examinaion of IAS17 accouning has led o an increase of he goodwill for 3.4M. These changes have no impac on previous year income saemen. Besides, Group benefied from a price adjusmen on he acquisiion of ECS Group for 14M. As his adjusmen has been paid in he form of 890,000 ordinary shares, i impacs he opening balance shee as a reducion of goodwill and ne equiy. 20 I 2011 half-year repor

21 The impacs on he ne equiy and he balance shee are deailed below: (in housands) Number of shares Subscribed capial Addiional paid-in capial Treasury sock Reserves Ne income and expense recognized direcly in equiy Consolidaed equiy Minoriy ineres Equiy of he consolidaed eniy Iniial Balance as of December 31, 2010 Treasury shares from price adjusmen 26,172,897 17,077 69,244 (1,993) 56,718 (1,428) 139, ,685 (14,018) (14,018) (14,018) Change effec of revised PPA (9) (9) (1) (10) Revised Balance as of December 31, ,172,897 17,077 69,244 (16,011) 56,718 (1,437) 125, ,657 Asses (in housands) Non-curren asses Iniial Dec Revised Dec Ne inangible asses 51,661 51,661 Goodwill 147,672 (10,841) 136,831 Ne propery, plan and equipmen 13,469 13,469 Long erm invesmens 33,113 33,113 Long erm receivables 2,265 2,265 Deferred ax asses 36,703 6,691 43,394 Toal non-curren asses 284,883 (4,150) 280,733 Curren asses Invenories 16,253 16,253 Trade and oher receivables 677,617 (12,959) 664,658 Curren ax asses 8,970 8,970 Oher curren asses 48,119 9,878 57,997 Cash and cash equivalens 217, ,873 Toal curren asses 968,832 (3,081) 965,751 Toal asses 1,253,715 (7,231) 1,246, I 2011 half-year repor

22 Equiy and Liabiliies (in housands) Iniial Dec Revised Dec Share capial 17,077 17,077 Addiionel paid-in-capial and reserves 93,763 (14,027) 79,736 Profi for he year 28,778 28,778 Toal consolidaed equiy 139,618 (14,027) 125,591 Minoriy ineress 67 (1) 66 Toal equiy 139,685 (14,028) 125,657 Toal non-curren liabiliies Financial debs 123, ,815 Provisions Provisions for pensions and oher commimens 11,689 11,689 Oher liabiliies 2,276 2,276 Deferred axes-liabiliies 29,388 4,963 34,351 Toal non curren liabiliies 167,618 4, ,581 Curren liabiliies Financial debs 126, ,764 Provisions 25,965 (441) 25,524 Income ax liabiliies 12, ,437 Trade and oher payables 717,418 (4,209) 713,209 Oher curren liabiliies 64,258 6,054 70,312 Toal curren liabiliies 946,412 1, ,246 Toal equiy and liabiliies 1,253,715 (7,231) 1,246, I 2011 half-year repor

23 4. Exchange raes 06/30/ /31/ /30/2010 Closing rae Average rae Closing rae Average rae Closing rae Average rae GBP CHF na na CNY na na CZK na na PLN na na MAD RON na na USD na na 5. Operaing segmens Since January 1, 2009, he Group applies IFRS 8 concerning segmen reporing which replaces IAS 14. The segmen repor presened has been prepared on he basis of inernal managemen daa disclosed o he Group Managemen Commiee (CDG), he Group s primary operaing decision-maker. The Group s operaing aciviies are organized ino 4 aggregae sraegic operaing business segmens: IT Financial Services, Producs and Soluions, Managed Services and Telecom Services. These can be analysed as follows: Aggregae sraegic operaing business segmens (4) Business segmens (16) IT Financial Services Producs and Soluions Managed Services Telecom Services France, Belux, Neherlands, Germany, Unied Kingdom, Spain, Ialy, Ireland, Poland, Slovaquia, Romania, Czech Republic, China, Unied Saes of America, Swizerland, Morocco France, Belux France, Belux, Neherlands, Germany, Spain, Ialy, Swizerland, Morocco France, Belux The 4 business segmens lised above presen a long-erm financial profiabiliy and share similar feaures ha allow heir aggregaion. They are managed according o he naure of he producs and services sold in he given economic and geographic environmens. This segmenaion ino business areas serves as a basis for he presenaion of he company s inernal managemen daa and is used by he Group s operaing decision makers o monior business. The Group s Managemen Commiee measures he performance of hese aggregae sraegic operaing 23 I 2011 half-year repor

24 business segmens based on operaing earnings. The resuls correspond o he iems ha are direcly or indirecly aribuable o a business segmen. Sales and ransfers beween segmens are carried ou a armslengh condiions and are eliminaed according o he usual consolidaion principles. The Group s aggregae sraegic operaing business segmens are defined as follows: IT Financial Services (ITFS): adminisraive and financial managemen of ICT asses. Managed Services (MS): - comprehensive managemen of disribued IT resources: consuling, ousourcing and suppor services; - for A2Z companies, a specific service offering ailored o he requiremens of SMEs, encompassing comprehensive managemen of worksaions and communicaions echnology, invoiced based on a monhly cos per user. Producs and Soluions (PS): services ranging from he sale of hardware and sofware (PC, servers, priners and licenses) o sysems inegraion. Telecom Services (TS): comprehensive managemen of elecom resources. Oher businesses: his segmen comprises all business aciviies ha do no correspond o he segmens as defined above Reporing by operaing business segmen The following able presens he conribuion of each operaing business o he Group s resuls : (in housands) IT Financial Services Producs and Soluions Managed Services Telecom Services Toal reporable segmens Oher businesses Toal Six monhs period ended June 30, 2011 Income Income from exernal cliens 519, , ,985 18, , ,719 Operaing inernal income 24,187 17,776 15, ,235 Toal income from operaing segmens Operaing profi or loss from aciviies 543, , ,618 18, ,824 15,459 3,145 (1,410) ,155 (1,822) 16,333 Six monhs period ended June 30, 2010 Income Income from exernal cliens 185,178 98,969 59,215 17, , ,250 Operaing inernal income 21,938 8,871 5,901 (76) 36,634 Toal income from operaing segmens Operaing profi or loss from aciviies 207, ,840 65,116 17, ,834 7,784 1,378 1,795 1,013 11,970 (1,135) 10, I 2011 half-year repor

25 5.2. Reconciliaion wih consolidaed accouns (in housands) H H Income from operaing segmens 821, ,834 Income from "Oher businesses" segmen Eliminaion of inernal revenue (58,235) (36,634) Toal income from coninuing operaions 763, ,250 Operaing profi or loss from aciviies 18,155 11,970 Profi or loss from "Oher businesses" segmen (1,822) (1,135) Operaing segmens aciviy profi or loss 16,333 10,835 Reversing enry depreciaion of inangibles Pos reiremen benefi plan amendmens (67) Oher profi or loss curren 1,156 (409) Operaing profi before resrucurings, impairmen losses on asses, disposal gains or losses and dispues 17,576 10,742 Resrucuring coss (4,793) Non-curren risks (12) Profi or loss non-curren (850) Acquisiion coss (604) Operaing profi 12,783 9,276 Oher financial income and expense (7,415) (324) Profi before ax 5,368 8, I 2011 half-year repor

26 5.3. Geographical segmens Geographical segmens daa presened in he able below prepared on he basis of geographical coverage of cliens for revenue. Revenue by geographical region (in housands) H H France 362, ,109 Belgium 135,394 91,653 Ialy 104,589 11,802 Spain 44,282 14,554 Germany 39,756 1,270 UK 25,695 1,165 The Neherlands 20,516 47,798 Luxembourg 8,765 5,899 Poland 7,539 Swizerland 5,036 Oher counries 9,208 Toal 763, , I 2011 half-year repor

27 6. Invenories The able below gives deails of invenories : (in housands) June 2011 Ne realizable value Invenories Equipmen in he process of being refinanced Gross value Ne value December 2010 Ne realizable value Gross value Ne value June 2010 Ne realizable value Gross value Impairmen Impairmen Impairmen Ne value 7,223 (1,690) 5,533 5,951 (1,678) 4,273 5,143 (188) 4,955 Oher invenories 19,774 (5,837) 13,937 17,903 (5,923) 11,980 6,236 (1,657) 4,579 ICT equipmen 8,400 (130) 8,270 6,437 (157) 6,280 2,983 (158) 2,825 Spare pars 11,374 (5,707) 5,667 11,466 (5,766) 5,700 3,253 (1,499) 1,754 Toal 26,997 (7,527) 19,470 23,854 (7,601) 16,253 11,379 (1,845) 9,534 Equipmen in he process of refinancing corresponds o hardware and sofware purchased and allocaed o leases. Movemens in invenories As of December 31, 2010 Movemens in invenories As of June 30, 2011 As of December 31, 2009 Movemens in invenories As of June 30, 2010 Equipmen in he process of being refinanced 5,951 1,272 7,223 1,866 3,277 5,143 Oher invenories 17,903 1,871 19,774 6,460 (224) 6,236 ICT equipmen 6,437 1,963 8,400 3,167 (184) 2,983 Spare pars 11,466 (92) 11,374 3,293 (40) 3,253 Toal 23,854 3,143 26,997 8,326 3,053 11,379 Provisions for impairmen of invenories As of December 31, 2010 Addiions Reversals As of June 30, 2011 As of December 31, 2009 Addiions Reversals As of June 30, 2010 Equipmen in he process of being refinanced (1,678) (12) (1,690) (149) (40) 1 (188) Oher invenories (5,923) (281) 366 (5,837) (1,992) (79) 414 (1,657) ICT equipmen (157) (273) 332 (130) (279) (2) 123 (158) Spare pars (5,766) (8) 34 (5,707) (1,713) (77) 291 (1,499) Toal (7,601) (293) 366 (7,527) (2,141) (119) 415 (1,845) 27 I 2011 half-year repor

28 7. Ne cash Ne cash as repored by he Group includes he following iems: (in housands) 06/30/ /31/2010 Cash equivalens 4, ,711 Cash 66,336 87,162 Toal cash and cash equivalens (a) 71, ,873 Non-curren deb (excep repurchase value) 80, ,713 Curren deb (excep repurchase value) 103, ,070 Toal deb (b) 183, ,783 Ne deb (b-a) 112,293 26,910 Cash equivalens consis of invesmens wih mauriies of less han hree monhs ha are readily converible ino known amouns of cash and are no exposed o any maerial risk of impairmen. None of he Group s cash or cash equivalens are subjec o any resricions. Ne deb by desinaion: (in housands) Working Capial Requiremen and oher debs (1,928) ECS acquisiion deb (converible loan + shareholder loan) 87,603 Recourse refinancing deb of lease conracs 27, I 2011 half-year repor

29 8. Curren and non-curren liabiliies bearing ineres (in housands) 06/30/ /31/2010 Finance lease liabiliies 4,859 6,986 Finance lease liabiliies real esae 2,709 2,838 Repurchase value 2,123 4,102 Oher finance lease liabiliies Bank borrowings 116,570 Converible bonds, ne liabiliy 77,997 Oher borrowings Non-curren liabiliies bearing ineres 82, ,815 Bank borrowings 36,312 77,332 Finance lease liabiliies 3,369 2,567 Finance lease liabiliies real esae Repurchase value 2,793 1,694 Oher finance lease liabiliies Bank overdrafs 18,671 2,300 Oher borrowings 47,680 23,361 Facoring payables 8,990 (1) 11,531 Refinancing wih recourse (2) 27,205 21,204 Oher 11,485 11,830 Curren liabiliies bearing ineres 106, ,764 Toal deb 188, ,579 (1) This mainly includes a reverse facoring agreemen for 7,2M. (2) This is he amoun of ousanding lease receivables, for which bears he credi risk. The ineres cos is recognized enirely on refinancing. On May , issued converible bonds for a oal amoun of 84M. These converible bonds are quoed on he Luxembourg sock exchange and have he following main characerisics: - Mauriy: 5 years - Annual coupon rae: 4% - Conversion price: 21 euros, represening a 25.15% premium on he 18 May reference share price. The hypoheical conversion of any amoun of hese bonds, possible a any ime, would be mached by he same amoun of newly issued shares or reasury shares. The main goal of his marke operaion was o reimburse he bank borrowing aken as o he acquisiion of ECS Group in Ocober This srucured financing of an iniial amoun of 132M had a remaining balance of 92M before he operaion. As of June 30, 2011, his credi is compleely reimbursed. In he consolidaed financial samens, converible bonds are mainly considered as financial debs ( 78M), excep for he value of he derivaive insrumen included in he bond ( 3M), accouned in equiy. In accordance wih IFRS, issuance fees have been also accouned in deb and equiy in he same proporion; afer his, effecive ineres rae on he liabiliy componen of he bond is measured a 5.34%. 29 I 2011 half-year repor

30 9. Definiion of cash posiion The cash flows analyzed in he following able include changes in coninuing aciviies as well as aciviies sold or awaiing disposal. There were no significan changes in he scope of consolidaion during he firs half of Consolidaed cash flows include cash and cash equivalens. The changes in cash and cash equivalens analyzed in he cash flow saemen can be broken down as follows (excluding impairmen losses on invesmens): (in housands) 06/30/2011 Cash and cash equivalens a beginning of year 217,873 Change in cash and cash equivalens (146,705) Cash and cash equivalens as of June 30, ,168 See chaper 7 Ne cash 10. Dividends The able below shows he dividend per share diribued by Group in June 2011 in respec of he 2010 financial year, and he dividend disribued during 2010 in respec of he 2009 financial year. 2011: 1 s half 2010: 1 s half Toal dividend disribuion (in housands) 8,813 6,851 Dividend per share ( ) I 2011 half-year repor

31 11. Relaed-pary ransacions Transacions beween he paren company and is subsidiaries, which are relaed paries, have been eliminaed on consolidaion and are no presened in his noe. The ransacions wih relaed paries summarized below mainly concern he principal ransacions carried ou wih companies in which he Chairman of Group s Board of Direcors holds a direcorship. Income Expenses Receivables Payables (in housands) 06/30/11 12/31/10 06/30/11 12/31/10 06/30/11 12/31/10 06/30/11 12/31/10 Inernaional NV (1) (1,108) (1,253) ,087 10,232 SCI Pergolèse (2) 6 12 (1,100) (1,019) Audevard GMPC (43) (134) Toal (996) (2,188) 485 1, ,732 (1) In July, Group has reimbursed EINV of he 10M loan, iniially subscribed for he acquisiion of ECS Group (2) This includes deparure fee from he building Inernaional NV is an unlised holding company which has a 49.10% sake in Group SA/NV. 12. Pos balance shee evens There is no significan even o be disclosed ou of normal course of business. 31 I 2011 half-year repor