D L S I : 2020 half-year results

FINANCIAL PRESS RELEASE

Wednesday, 30 September 2020, after market close

2020 half-year results

Revenue: €68.5M

First half of 2020 bore full effect of the COVID-19 pandemic

Secure cash position and stable equity

DLSI SA's Management Board and Supervisory Board met on 25 September 2020 and closed the (unaudited) accounts for the first half of 2020:

Thousands of €	30 June 2020	30 June 2019
IFRS standards	(6 months)	(6 months)
Revenue	68 484	111 361
Operating income	(1 103)	5 121
Pre-tax income (*)	(1 226)	4 958
Tax expense	852	2 319
Total net income	(2 078)	2 638
Group share in net income	(1 859)	2 663
Equity (A)	47 463	47 494
Financial debts (B) (**)	17 040	22 616
Cash (C)	16 903	7 208
Net debt (B-C)	137	15 408
Gearing (B-C) / (A)	0.3%	32%

1. The value-added contribution (CVAE) pursuant to the business-tax reform has been reclassified as an income tax in accordance with IFRS standards.
   (**) Financial debts take into account IFRS 16 restatement and financial leases.

Revenue: a major blow in France mitigated by international activity

As expected, the health and economic crisis caused by COVID-19 greatly affected activity in the first half of 2020. Consolidated revenue was down 38.5% at €68.5M, compared with €111.4M for the first half of the previous financial year.

Revenue from activities in France (63% of consolidated revenue) suffered a 45% drop over the first six months of the year compared with the first half of 2019.

Revenue from nuclear activities fell 33.3% as at 30 June 2020, at almost €5M compared with €7.5M for the first half of 2019.

Revenue from international activities (37% of consolidated revenue) fell 23%.

In this difficult and unprecedented context, the DLSI Group has nevertheless been able to stay the course due to the implementation of various strategies in France and abroad, as well as the dedication of all its teams.

International activities were less affected, mainly thanks to operations in Switzerland via the PEMSA subsidiary whose activity was reduced by 19% during the first half of the year.

Results: the Group's organization limited fallout from the drop in revenue

In the midst of this crisis, the DLSI Group was able to adapt and reorganize daily in order to continue providing its services to its clients, all while keeping the safety of all its employees at the forefront of its concerns.

The other priority during this time was protecting jobs while implementing a variety of measures such as consolidating agencies, setting up employment assistance and the continuous streamlining of expenses.

The Group's organization therefore made it possible to limit the fallout from the drop in revenue by generating negative operating income of (€1,103K) compared with a positive amount of €5,121K the previous financial year, and a negative Group share in net income of (€1,859K) compared with a profit of €2,663K.

Balance sheet and overview: solid financial structure, no debt

Equity remained stable at €47.4M.

The Group's debt ratio is nonexistent, at 0.3% as at 30 June 2020. Financial debts amounted to €17M compared with available cash of €16.9M. This cash is primarily the result of a drop in the WCR that reflects the dip in activity, the decision to not pay out dividends and the Group's budgetary discipline.

The Group is therefore on solid financial footing based on a healthy and balanced financial structure. The Group obtained a government-backed loan of €8M from its bank pool.

Application of IFRS 16 as at 30 June 2020 resulted in increasing the net fixed assets by €1.8M, as well as the financial debts by the same amount.

Prospects for the rest of 2020

Prospects for the second half of 2020 are more favorable.

The Group's agencies, most of which had ceased full activity since March, have returned to their previous activity levels, both in France and abroad.

Streamlining measures undertaken during the first half of the year will remain in place in the second half of the year and continue to produce results.

A solid financial structure, a flexible and adaptable organization, a robust business model and close- knit teams are all part of the assets that make it possible for DLSI to weather the current crisis and rebuild its capacity for growth.

As announced on 31 March upon publication of its 2019 annual results and on 31 July upon publication of its consolidated revenue for the first half of 2020, DLSI is not releasing any target numbers for the 2020 financial year.

Upcoming:

• Publication of 2020 third-quarter revenue on 30 October 2020 (after market close)

About DLSI:

Created in 1992, the DLSI Group represents a network of over 70 agencies located throughout eastern France, from Dunkirk to Lyon, as well as in Paris, the north-west and the Provence-Alpes Côte d'Azur region. The DLSI Group also has locations in Luxembourg, Germany, Switzerland and Poland.

With a foothold in all industries, we offer all employment solutions, from indefinite-term contracts to fixed-term contracts and temporary employment.

Listed on the Euronext Growth market of Euronext Paris since 2006, the Group generated revenue of 232.2 million euros in 2019.

ISIN FR0010404368 - Ticker symbol: ALDLS

DLSI contacts:

• Financial: Thierry DOUDOT / Anne Marie ROHR - phone: [phone]
• Communications: Jean-Guillaume ROYER / Maël LE NINAN - [e-mail]

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