Groupe Open : Results H1 2017

Results H1 2017

A further increase in Current Operating Income (+14.7%) to 7.2% of Turnover

Paris, 06 September 2017 - Groupe Open (ISIN: FR 0004050300; NextEconomy segment - 972, IT services), the Digital Services Company, publishes its results for H1 2017.

Half-yearly results 2017

In € million	June 2017	June 2016	2017/2016
Turnover	162.5	152.8	+6.3%
Current Operating Income	11.7	10.2	+14.7%
% COI	7.2%	6.7%
Other operating income and expenditure	-0.3	-0.8
Operating income pre-IFRS2	11.4	9.4	+21.3%
IFRS2 costs of free shares	-1.1
Operating income	10.3	9.4	+9.6%
Cost of net financial debt	-0.4	-0.4
Tax expenditure	-4.3	-3.7
Net income from continuing activities	5.6	5.3	+5.7%

Groupe Open pursues its growth, as illustrated by strong financial performances on all its indicators: growth in turnover exceeding that in the market (+6.3%, of which 4.4% organic) and a significant improvement in its income (Current Operating Income up +14.7%, Net Income up by +5.7%).

The free ordinary and preference share Allotment Plan decided on by the Board of Directors on 29 December 2016 represents a consolidated cost (IFRS2) of €1.1 million for H1.

The productive workforce on 30 June 2017 stood at 3,700, which was up on 30 June 2016 (3,500). This increase went hand in hand with that in the Average Daily Rate, while the Occupation rate remained stable.

Breakdown of Turnover and Current Operating Income by geographic area:

In € million	H1 2017	H1 2016	Growth
Turnover France	151.8	141.4	+7.4%
COI France	11.4	10.2	+11.8%

In € million	H1 2017	H1 2016	Growth
International turnover Belgium Netherlands Other	10.8 4.7 3.6 2.4	11.5 4.9 4.1 2.5	-6.3% -3.7% -11.3% -3.5%
International COI	0.3	0.0

France turned in an excellent performance with +7.4% growth in turnover, of which over 5% organic.

Financial situation in H1 2017

BALANCE SHEET AND CASH FLOW

In € million	June 2017	Dec 2016	In € million	June 2017	Dec 2016
Goodwill	111.8	112.5	Shareholders' equity	114.2	113.8
Non-current assets	124.8	124.4	Financial debt	19.8	20.0
Cash flow	26.9	30.8	Non-current liabilities	22.6	20.6
Other financial liabilities	6.4	6.3
Current assets	116.8	113.8	Current liabilities	104.8	103.8
Total ASSETS	241.6	238.2	Total LIABILITIES	241.6	238.2

The financial structure reflects the positive net cash flow of the company and its effective control over its Working Capital Requirement (WCR).

In € million	June 2017	Dec 2016	June 2016
Net cash flow from operations	6.3	8.7	0.4
Net cash flow from investment	-3.3	-8.2	-2.9
Net cash flow from financing operations	-6.8	3.9	0.7
Variation in net cash flow	-3.8	4.4	-1.8
Cash and cash equivalents at opening	29.2	24.8	24.8
Cash and cash equivalents at close	25.4	29.2	23.0

The figures for cash flow generation show:

• effective control over WCR and outstanding invoices [cash flow from operations];

• investments relating to R&D and to the new sites [cash flows from investments];

• cash flow relating to financing operations reflects in particular the distribution of dividends (-€2.8 million) and the buyback of treasury shares (-€2.4 million) [cash flow from financing operations].

As a reminder:

To support its growth targets and ensure the success of this Strategic Plan 2020, the Board of Directors, by virtue of the authorisation granted by the General Meeting of 29 December 2016, has decided to involve the company's management and give it a share of profits through the allotment of ordinary and preference shares free of charge.

This allotment, subject to attendance and performance conditions to the horizon of 2019, could lead to the creation or allotment of up to 377,182 shares (4.4% of capital). To date, Groupe Open holds 214,164 company-controlled shares acquired as part of its share buyback plan, which can be allotted when the above-mentioned shares are converted / acquired. Groupe Open will be continuing its share buyback policy in order to allot these shares as part of this plan.

Activity and operational performance in H1 2017

For nine consecutive half-year periods, Groupe Open has posted higher growth rates than those of its market (Consulting & Services +2.7% estimated in 2017), driven by its winning combination of:

• A successful positioning constructed around an end-to-end offering (IT and Digital) that provides the perfect match for market expectations and enables the company to accompany its clients in addressing their Transformation challenges.

• The quality of its industrial production facilities with its three Service Centres (Application Management in Lille, Testing in Nantes, Infrastructure Management in Tours) which are growing strongly, having doubled their production capacity in the space of 2 years.

• A corporate set-up that is particularly well-suited to market expectations:

  • A brand image that is reinforced by a comprehensive digital ecosystem, boosting the company's employer brand image

  • A sound and stable local and national operational organisation.

  • Corporate values embodied by its personnel

  • A resolute commitment to its social responsibility

The key sectors of activity for Groupe Open remain those of Banking-Insurance-Finance, the Public Sector, Energy and Transport, in the image of the market.

A large number of outstanding projects have been rolled out over the first half of this year, for the modernisation of the State, to improve customer relationships, to accompany the much-needed shift towards digital solutions, or to address the challenges of IT rationalisation.

Over H1, Groupe Open also launched a number of innovation projects:

• The Fastlab® byOpen (fastlab.open.global), the acceleration programme for the digital initiatives of businesses, and the Store byOpen (www.openstore.global), a genuine augmented sales channel offering companies the possibility of finding their own way around the Group's catalogue of services.

• The market launch of "Primpromo Digital Suite byOpen", the international SaaS (Software as a Service) solution for players on the property development market,

• The first successes of Moodpeek byOpen among some key accounts (Transport, Tourism, Automotive Industry, Media and Banking) improving customer experience in the mobile channel. This solution earned the recognition of the market in the form of two awards: Digital Innovation Prize 2017 "3rdplace in the data category: data marketing, data visualisation, data intelligence" and Les Pépites Tech, elected as the "innovative start-up with strong growth potential".

Summary and Future Prospects

Turnover for H1 2017 demonstrates the dynamic performance of Groupe Open, illustrated by organic growth that clearly exceeded that of the market (expected growth: +2.7% in 2017 - Consulting & Services: Syntec Numérique).

With its eye on its external growth objectives, Groupe Open has consolidated its already sound financial situation and developed its portfolio of target companies, which it aims to extend.

For the year 2017, Groupe Open clearly confirms its expectation of growth in its Turnover and Current Operating Income, despite the impact of the year having 2 fewer working days than 2016, and remains confident as to its ability to achieve its objective for 2020: €500 million in Turnover and 10% Current Operating Income.

The results for H1 2017 will be commented on by Valérie Benvenuto, Frédéric Sebag and Guy Mamou-Mani at the SFAF meeting to be held at 11.30am on Thursday 7 September Turnover figures for Q3 2017 will be published on Thursday 19 October 2017 in a news release issued after the close of the stock exchange

Nathalie Mrejen - Communication

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About Groupe Open

With 3,700 employees and turnover of €305 million in 2016, Groupe Open is a leader in digital services and operates mainly in France, and also internationally in Belgium, the Netherlands, Luxembourg and China.

Open provides daily support to businesses and organisations in their industrial and digital transformation with its efficient, end-to-end IT and Digital offering encompassing the whole value chain of companies. Its objective: To transform the information systems of its clients in response to their new digital business models with a guarantee of stability combined with operational and cost control to take up the challenges of Time to Market, agility, rapidity and experimentation.

The Groupe Open approach is resolutely forward-looking and built around its corporate values: Pertinence, Audacity, Ethics and Responsibility, Passion and Commitment.

For further information about Groupe Open:www.open.global

Media Relations - Wellcom Agency -Elise Plat & Camille Ruols - Tel: [phone] | [e-mail]