SOLVING EFESO INTL : 2015 Half-year results

Efeso Consulting.4660.English.Solving Efeso Communiqué S1 2015_VF

ABU DHABI, ATLANTA, BARCELONA, BERLIN, BRUSSELS, BUDAPEST, BUENOS AIRES, CAIRO GOTHENBURG, 'S-HERTOGENBOSCH, ISTANBUL, LISBON, MANCHESTER, MEXICO CITY MILAN, NEW DELHI, NEW YORK, PARIS, RIYADH, SAÕ PAULO, SEOUL, SHANGHAI, SINGAPORE SAINT PETERSBURG, STOCKHOLM, TOKYO

Financial Information I Paris, 22 September 2015 Solving Efeso Group becomes EFESO Consulting

2015 HALF-YEAR RESULTS:

• Revenue growth in all geographic regions

• Strong increase in EBITDA1 margin to 12.3% (vs. 10.2% H1 2014)

• Profit from recurring operations: €4.2 million (up 44% vs. H1 2014)

• Group share of net profit: €1.8 million (up 10% vs. H1 2014)

Paris, 22 September 2015 - Solving Efeso International (Alternext: ALOLV), an international consultancy firm specialised in strategy and operational excellence, positioned in rapidly growing markets, publishes its results for the first half of 2015.

Filippo Mantegazza, Chairman of the Solving Efeso International Management Board, said, 'The 44% growth in Profit from Recurring Operations in the first half of 2015 reflects our capacity to support large- scale projects for our international clients. It also underlines our dynamic acquisitions strategy, as since 1 May the consultancy firm Empact, based in Brussels and an expert in the operational implementation of change, has been consolidated in our financial statements. The Group intends to pursue its profitable growth strategy. '

1/ Revenue growth in all geographic regions, particularly Asia

EFESO Consulting achieved consolidated revenue of €37.3 million in the first half of 2015, an increase of 14.3% compared with the first half of 2014 (up 10% at constant exchange rates and 6.4% on a like-for-like basis), with all the geographic regions in which the Group operates contributing.

The strongest growth was recorded in Asia, with the gradual implementation of projects with major international clients (35% growth, up 24% at constant exchange rates). Business recovered significantly in the Middle East, particularly in the Gulf States and Saudi Arabia. Business in Russia contracted and remained related to the global context, which curtailed investment by major international clients (down 83%). In total, growth in emerging countries reached 34% (up 27% at constant exchange rates).

In France, revenue increased by 15%, driven by the energy of our sales teams and by the Group's innovative offer. Strong sales growth in Spain (up 208%) was due to a large scale project, launched in 2014 and which is ongoing in 2015. Sales in Italy limited their decline (down 16% in H1 2015 against a fall of 34% in H2 2014) but still suffered from the wait-and-see attitude of major clients, given the situation at local level. Since 1 May 2015, the Belgian company Empact has been consolidated in the Group's financial statements and its contribution to the Group's revenue was €1.2 million. In total, Europe recorded growth of 11% (up 10% at constant exchange rates).

The geographic breakdown of EFESO Consulting's revenue is as follows:

Revenue analysis	H1 2015	H1 2014	Change
Europe	70.3%	72.4%	+11.2%
of which France	25.6%	25.3%	+15.5%
North America	13.0%	13.4%	+11.1%
Emerging countries	16.6%	14.2%	+34.3%

Source: Unaudited financial statements approved by the Management Board and reviewed by the Supervisory Board on 22 September 2015

2/ Increase in both profitability and EBITDA margin1 at 12.3%

EBITDA1 totalled €4.6 million over the first six months (12.3% of revenue), compared with €3.3 million in the first half of 2014 (10.2% of revenue), representing growth of 38%. The sharp increase in operating margin is the combined result of the development of activities offering high margins, restructuring measures undertaken in 2014 and the earnings enhancing acquisition of Empact.

Profit from recurring operations posted a historical high of €4.2 million, compared with €2.9 million in 2014, an increase of 44%.

Operating profit totalled €3.5 million, compared with €2.8 million in 2014, an increase of 26%. The Group recorded non-recurring costs of €0.7 million in the first half, primarily related to the acquisition of the Belgian company Empact.

The cost of gross financial debt was €0.2 million, a fall of 22% in comparison with the first half of 2014 due to the reduction in both interest rates and average debt over the period.

Income tax totalled €1.0 million against €0.5 million for the first half of 2014.

Fully consolidated net profit was €2.4 million, compared with €2.0 million in the first half of 2014.

Group share of net profit was €1.8 million, whilst minority interests represented €0.6 million, an increase of €0.3 million in comparison with minority interests for the first half of 2014.

1 Profit from recurring operations restated for depreciation, amortisation and operating provision charges and reversals

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

(€ K)

Jun-15

Jun-14

vs. 2014

Revenue	37,300	32,629	14.3%
EBITDA	4,597	3,326	38.2%
Profit from recurring operations	4,156	2,893	43.7%
Other operating income and expenses (exceptionals)	(696)	(137)	406.6%
Operating profit	3,461	2,756	25.6%
Cost of net financial debt	(183)	(234)	-21.5%
Income tax	(995)	(519)	91.7%
Net profit	2,392	1,989	20.2%
Group share of net profit	1,823	1,663	9.6%

Source: Unaudited financial statements approved by the Management Board and reviewed by the Supervisory Board on 22 September 2015

3/ Stronger financial structure

Working capital requirements, after restatement for acquisition-related liabilities of €3.8 million, decreased to €6.4 million compared with €8.0 million at the end of the first half of 2014. 'Trade receivables' were stable at €23.1 million and corresponded to 95 days of revenue inclusive of VAT, compared with 108 days at 30 June 2014. 'Other current liabilities' increased to €14.8 million (compared with €9.8 million at 30 June 2014). This change was due to additional acquisition-related debts of €3.1 million being recorded under 'Other Debts' and to a €1.8 million increase in advances received from clients.

Shareholders' equity grew by €4.7 million compared with the end of 2014 to €46.3 million, which reflected, inter alia, the €5 million share capital increase of 12 May 2015 reserved for Empact's manager shareholders. Net consolidated financial debt of €5.8 million was stable in comparison with the

€5.4 million at the end of 2014.

CONDENSED CONSOLIDATED BALANCE SHEET

(€ K)

Jun-15

Dec -14

vs. 2014

ASSETS
Non-current assets	51,062	40,380	26.5%
Current assets	36,159	30,728	17.7%
Total Assets	87,221	71,108	22.7%

EQUITY AND LIABILITIES
Shareholders' equity	46,312	41,663	11.2%
Non-current liabilities of which long-term financial debt	7,997 6,363	3,558 2,036	124.7% 212.5%
Current liabilities of which short-term debt	32,913 8,109	25,887 8,814	27.1% -8.0%
Total Assets	87,221	71,108	22.7%

Source: Unaudited financial statements approved by the Management Board and reviewed by the Supervisory Board on 22 September 2015

4/ Solving Efeso becomes EFESO Consulting

Solving Efeso Group has changed its name and, as of 1 September 2015, is now called EFESO Consulting Group. Consequently, the change in corporate name of Solving Efeso International (SA) to become EFESO Consulting (SA) will be submitted to a shareholders' vote at the Extraordinary General Meeting of 15 October 2015.

This new name affirms the integration of the legacies of both Solving and Efeso, leading business consultancies which merged in 2007. It also reflects the ambition to strengthen the brand at international level, where the Group, with its 480 employees across 26 countries, generates on average three quarters of its revenue. This new name guarantees continuity from 35 years' worth of experience serving mid-cap and global companies in developing their strategies and optimising their competitiveness, by ensuring excellence in the operational implementation of change.

5/ Outlook: continued development momentum

On the back of continued growth in revenue over the first half of 2015 and the diversity of its growth drivers, both geographic and sectoral, the Group confirms its 2015 objective of outperforming the consultancy market and maintaining higher operating profitability growth than sales growth.

Next communication: Revenue for the third quarter on 12 November 2015 (after close of trading)

Contacts:

David AUREGAN, Chief Financial Officer, Tel: [phone] - [e-mail]

Antoinette DARPY, Press, Tel: [phone] - [e-mail]

Solving Efeso International shares trade on Alternext Paris.

Free float: 18%

Number of outstanding shares: 24,300,428 ISIN FR0004500106

Ticker: ALOLV

Date of IPO: 02/07/1998

Code 6467 Bloomberg: ALOLV:FP

Reuters: ALOLV.PA

This document may contain forward-looking financial information (particularly with regard to targets and trends) and forward-looking statements concerning Efeso Consulting's financial position and performance, its operations and its strategy.

Such forward-looking disclosures and statements are based on data or assumptions that could ultimately prove inaccurate and are subject to a number of risk factors, and in particular currency fluctuations and general economic and financial conditions. Solving Efeso International SA does not assume any duty or responsibility towards investors or towards any other party to update or revise, whether as a result of new information, future events or otherwise, all or part of the statements, forward-looking information, trends or targets provided in this document.