Claranova : Half-year Financial Report as of December 31, 2020

HALF-YEAR FINANCIAL REPORT

AS OF DECEMBER 31, 2020

CONTENTS

CHAIRMAIN'S MESSAGE	4
KEY FIGURES	5
PROFILE	6
BUSINESS REVIEW	8
INTERIM MANAGEMENT REPORT FOR
THE HALF-YEAR ENDED DECEMBER 31, 2020	11
CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS FOR HALF-YEAR
ENDED DECEMBER 31, 2020	27
STATUTORY AUDITORS' REVIEW REPORT
ON THE INTERIM FINANCIAL INFORMATION	53
STATEMENT BY THE PERSON RESPONSIBLE
FOR THE ORIGINAL FRENCH VERSION
OF THE INTERIM FINANCIAL REPORT	54

GLOSSARY	55

This document is a free translation of the original "rapport financier semestriel" in French for the half-year ended December 31, 2020. As such, the English version has not been registered by this Authority. The English version of this document has not been audited by our Statutory Auditors and the English translations of their reports included herein are provided for information only. In the event of any ambiguity or conflict between corresponding statements or other items contained in these documents and the original French version, the relevant statement or item of the French version shall prevail and only the original version of the document in French is legally binding. As such, this translation may not be relied upon to sustain any legal claim, nor be used as the basis of any legal opinion and Claranova expressly disclaims all liability for any inaccuracy herein.

In this

Interim Financial Report,

the term "Group" refers to Claranova and

its subsidiaries and the terms "Claranova" or the "Company" refer to the company, Claranova.

This Interim Financial Report contains information about the Group's

objectives and development strategy. Such information may be identified by the use of the future and conditional tenses and by forward-looking terms such as "consider", "envisage", "think", "target", "expect", "intend", "should", "aim", "estimate", "believe", "wish" and "may" or, in certain cases, the negative form of these

terms, or similar expressions.

The reader's attention is drawn to the fact that these objectives and development strategy depend on circumstances and events which may or may not occur.

These objectives and development strategy are not historical data and should not be considered to give any assurance that the stated events and data will occur, the assumptions confirmed, or the objectives attained. By their nature, these objectives may not be achieved and the statements and information presented in the Registration Document may prove incorrect, without the Company being required in any way to provide an update, subject to

applicable regulations and particularly the AMF General Regulations (Autorité des Marchés Financiers: French Regulator).

This International Financial Report contains information about the Company's business and the market and industry in which it operates. This information notably stems from studies conducted by internal and external sources (analysts' reports, specialized studies, sector publications, and any other information published by market research firms, companies and government agencies). The Company

considers that this information presents a true and fair view of

the market and industry in which it operates and accurately

reflects its competitive position. However, while this

information is considered reliable, it has not

beenindependentlyverifiedbythe Company.

HALF YEAR FINANCIAL REPORT AS OF DECEMBER 31, 2020 - CLARANOVA

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CHAIRMAN'S MESSAGE

N. Chairmain's message

 In an economy of continuing digital transformation, our growth potential remains considerable 

More than any year to date, 2020 marked a pivotal milestone in the economy's digital transformation. Our diversified market position in this segment allowed

us to fully benefit from the economy's rapid digital development and the explosion of e-commerce within a health context we have been experiencing for nearly one year. In this very particular context, our teams once again demonstrated their agility and responsiveness. Their unwavering efforts enabled Claranova to achieve record performances in the first half of fiscal 2020-2021 with continuing strong revenue growth, up 25%(1) to €278 million, but above all, a very significant improvement in operating profitability with EBITDA of €23 million. This latter aggregate more than doubled in relation to last year's first half, already exceeding the total annual amount of EBITDA achieved by Claranova over the entire 2019-2020 fiscal year. Similarly, the Group's net profitability(2) grew by a multiple of seven to reach the historic level of €11 million. These performances are the result of work accomplished over the last few years to strengthen our positions in high-potential segments and build resilient economic models for each of our businesses.

1. Change at constant exchange rates.
2. In terms of Net Income.
3. EBITDA as a percentage of revenue.

At the end of 2020, while the global economy was still experiencing a downturn, we succeeded with PlanetArt to acquire new market share and develop a unique personalized mobile and web-basede-commerce platform in this fast-growing sector. In the software publishing sector, the transition to a recurring revenue model based on subscriptions has already produced results, leading to a significant improvement in Avanquest 's profitability profile. Finally, myDevices has continued to structure its network of resell partners to fully profit from the widespread adoption of the Internet of Things that is expected to be accelerated by the health crisis.

These excellent achievements highlight the growth potential of our businesses and provide yet another confirmation of the strength of our business models. In an economy that is continuing its digital transformation, our growth potential remains considerable. We are more than ever confident in our ability to maintain this trend of profitable growth and reaffirm our goal to achieve annual revenue of €700 million and an operating margin(3) above 10% by 2023.

PIERRE CESARINI

Chairman and Chief Executive Officer

of Claranova Group

4 -

KEY FIGURES

N. Key figures

€278m		25%		€23m
Half-year		annual growth		EBITDA (4)
revenue		at constant
		exchange rates

HALF-YEAR		OVERALL AND ORGANIC	EBITDA(4)
REVENUE			GROWTH(5)			(In € million)
(In € million)
					Overall	Organic
					figure	Growth
			278			68%					23
		234
			55%
140			33%		19% 17%	11	11
						19%
	H1	H1	H1		H1	H1	H1		H1	H1	H1
2018	2019	2020	2018	2019	2020	2018	2019	2020
2019	2020	2021	2019	2020	2021	2019	2020	2021

NET INCOME		CASH FLOWS
(In € million)			FROM OPERATIONS
				(In € million)		40
			11			37
				19
2	1
	H1	H1	H1		H1	H1	H1
2018	2019	2020	2018	2019	2020
2019	2020	2021	2019	2020	2021

NET DEBT

(In € million)

12/31/2018

12/31/2019

12/31/2020

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-43-47

1. EBITDA (Earnings before interest, taxes, depreciation and amortization) is a non-GAAP aggregate used to measure the operating performance of the businesses. It is equal to Recurring Operating Income before depreciation, amortization and share-based payments including related social security expenses and the IFRS 16 impact on the recognition of leases. A reconciliation of Recurring Operating Income and EBITDA is presented in Paragraph 1.2, Chapter 1 of this document. The IFRS 16 impact is presented in Chapter 2, Note 16, of this document.
2. Organic growth is like-for-like growth defined as the increase in revenue at constant consolidation scope and exchange rates.

HALF YEAR FINANCIAL REPORT AS OF DECEMBER 31, 2020 - CLARANOVA

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