AKKA Technologies : A SUCCESSFUL YEAR WITH SOLID FUNDAMENTALS

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FINANCIAL HIGHLIGHTS

Revenue: €1.8 billion - growth of 19.7% Operating margin from ordinary activities: 8% Free Cash Flow: 5.5% of revenue

OPERATIONAL HIGHLIGHTS

North America - Successful completion of PDS Tech integration Digital - Acquisition of Data Respons - Digital platform of €0.5B revenue

Mauro Ricci, Chairman and CEO of AKKA, commented:

'AKKA continues to build up the future and delivered solid performance in 2019. The Group achieved its margin guidance despite a Q4 slowdown. The integration of PDS Tech in the US and the constitution of half a billion euros digital platform with the acquisition of Data Respons ideally positions AKKA to capture our market's expected future growth.'

2019 RESULTS

	FY 2019	FY 2018	Variation %
Revenue in € million	1,801.5	1,505.3	+19.7%
Operating profit from ordinary operations in € million	143.7	118.1	+21.7%
As a % of revenue	8.0%	7.8%
EPS in €	3.64	2.55	+42.7%

2019 KEY FIGURES

Revenue Growth

• Group revenue was €1,801.5 million in 2019, a pro forma increase of 6.3%. This includes a 5.8% growth in France and International business units. AKKA Germany continued to outperform its domestic market with a growth rate of 1.6% while North America grew by 17.6%. AKKA's consolidated growth stood at 19.7%.

• The Q4 slowdown was stronger than expected due to key automotive customers' transition, B737 Max program's impact on aerospace suppliers and causes due to internal reasons. AKKA has taken the appropriate action internally to return to levels of growth above the market.

• Operating margin from ordinary operations reached 8% of revenue, in line with the group guidance. The 4 Business Units - France, Germany, International and North America - have improved their margins. Excluding PDS Tech, the operating margin is up by 70bp to 8.7%

Simplified P&L in € million	FY 2019	FY 2018	Variation %
Revenue	1,801.5	1,505.3	+19.7%
Operating profit from ordinary operations	143.7	118.1
Non-recurring costs and expenses	(18.7)	(18.2)
Stock options and free shares	(3.8)	(9.8)
Operating profit	121.2	90.1	+34.6%
As a % of revenue	6.7%	6.0%	+70bp
Consolidated net income	73.3	53.1	+38.1%
As a % of revenue	4.1%	3.5%	+60bp
EPS in €	3.64	2.55	+42.7%

• Operating profit surged by 34.6% at €2 million, representing 6.7% of revenue, as result of an increase in ordinary activity and stability of non-recurring activities and a decrease of stock options costs.

• Non-recurring costs of €18.7 million stem from the integration of PDS Tech, the launch of the Strategic Customers Department and the finalization of the German BU's organization. Additionally, cost of stock options and free shares reached €3.8 million mainly in H1.

• Group net profit surged by 38% to €73.3 million in 2019 thanks to stability in financial costs and despite the growth of Income Taxes.

Strong cash generation

• Operating cash flows benefited from the substantial growth in the operating margin and a decrease of the days sales outstanding (DSO). Free cash flows amounted to €99 million and represented 5.5% of Group revenue, exceeding the guidance of 5%.

• AKKA's balance sheet structure is solid. Net debt stood at €73 million at 31^st December 2019 and benefited strong free cash flow generation and €175 million ODIRNANE issued in December. The equity at €478 million permits a Group's gearing of 15% and its leverage at 0.43x far below the 4x covenant. Gross cash reached €469.2 million at 31^st December 2019. Including the non used RCF & Neu CP, the Group financing capacity is above €1.3 billion.

2019 RESULTS BY REGION

• In FY 2019, AKKA's French BU delivered revenue growth of 5.8% equal to €661.4 million and the operating margin from ordinary operations increased 70bp to reach 11.2%, including CIR (Research Tax Credit).

• The German BU grew organically by 1.6% in FY19 to €519.3 million and operating margin rose by 20bp to 9.2% in the full year. The creation of a strong digital platform with Data Respons will allow the BU to benefit from the launch of OEM's new digital programs from H2 onward.

• PDS Tech is up to expected performance and strategic synergies. AKKA North America proforma revenue (including PDS Tech) increased by 16% to €305 million in 2019 and profitability grew from 2.5% in 2018 to 4.3% in 2019.

• International BU FY19 revenue increased by 5.8% to €315.9 million. Belgium, Spain and Italy performed well. Short term difficulties in Switzerland and in the Energy sector impacted this year's growth. The BU delivered a 11.6% margin compared to 10.5% in 2018.

ACQUISITION OF DATA RESPONS

• On 9^th March 2020 AKKA launched a mandatory offer on the remaining shares of Data Respons. As off today, AKKA has more than 90% of Data Respons' share capital. AKKA plans to delist Data Respons from the Oslo stock exchange.

• In a data driven world, the acquisition of Data Respons is a game changer and will create Europe's largest digital solutions powerhouse permitting AKKA to have Europe's most comprehensive digital solutions portfolio in the growing mobility market.

OUTLOOK

• The outlook of the 1^st part of the year remains complex. H1 is expected to be impacted by key automotive customers' stand still and the B737Max suppliers. The coronavirus crisis is expected to impact the business. AKKA is carefully monitoring the evolution in order to handle the situation as closely as possible.

• The uncertainty around the macroeconomic environment following the COVID-19 outbreak does not enable the Group to release a 2020 guidance at this stage. The full year guidance will be released once the economic environment presents a clearer visibility.

AUDITORS REPORT
The statutory auditor, EY Réviseurs d'Entreprises SRL, has confirmed that their audit procedures, which are substantially complete, have not revealed any material mistatement which would have to be made to the accounting information included in this press release.

Upcoming events:

Q1 2020 revenue: Wednesday, 6^th May 2020

Half-year 2020 revenue: Monday, 27^th July 2020

In case of discrepancies between the French and English versions of the press release, only the English version shall be deemed valid.