NEURONES : Letter to shareholders - october 2022

« To create is to live twice. »

Albert Camus

Letter to shareholders

No.41 (October 2022)

CONSOLIDATED REVENUES (in millions of euros)

								580	>640
				*	*	510*	525
		399	447	485	490
343	355
2013	2014	2015	2016	2017	2018	2019	2020	2021	2022(e)

+12.5%

ORGANIC REVENUE GROWTH

H1 2022

STAFF (year-end)

						5,370 5,500	5,870 6,200
			5,040 5,030* 5,160
		4,580
4,070 4,080
2013	2014	2015	2016	2017	2018	2019	2020	2021	2022(e)

11.3%

OPERATING PROFIT RATE

H1 2022

• Changes in the scope of consolidation (€23m of revenues sold) and in the IFRS15 accounting method (€10m of revenues less per year from 2018).

"Success breeds success." This encouraging proverb most certainly corresponds to the dynamism of NEURONES as at June 30, 2022:

• organic growth of +12.5% (repeating the performance of the 1st half of last year),
• leap of +22.1% in operating profit (reaching ahistoric high of 11.3% of revenues),
• increase of +21.3% in the earnings per share.

1 - WHAT LIES BEHIND THESE FIGURES?

1. - A clear position, as close as possible to clients engaged in massive transformation. Digital, Consulting, migration toward different forms of the Cloud, Cybersecurity, etc.: they have a substantial appetite for these strengths of NEURONES. While margins are, for their part, supported by the scarcity of Consultants.
2. - The ambition of a growing circle of entrepreneur-managers, motivated by the desire to grow the business in which they hold shares. The most efficient of them, withleadership:
3. • are continually adding to their offer in terms of Digital Consulting and Services and thereby benefit from genuine pricing power,
   • are going to be demanding in their search for the new talents who will achieve the successes of tomorrow,
   • are creating an energizing enterprise culture (trust,

short approval loops, auto-organization, etc.), much appreciated by the new generations looking for meaning and new working environments.

2 - WHAT TO EXPECT FOR TOMORROW?

In 2022, the market experienced its greatest dynamism for… over twenty years! It is therefore unsurprising that commentators are now glimpsing less sunny economic prospects.

As for the group's women and men of action, they follow the words of the Latin poet ("One must try to submit the circumstances to oneself and not submit to them") and observe that:

• only 25% of companies in Europe would appear to be using cloud computing,
• even the combat to prevent global warming involves the digital transformation,
• like on a F1 circuit, slowing down when coming into a bend presages… new accelerations in the next straights.

3 - AND WHAT CAN WE COUNT ON FOR THE DAY AFTER TOMORROW? To be more efficient, economic life is incorporatingever more:

• data, the exponential increase in which fuels the activities of the group,
• investment in the digital sector, this new oxygen which opens up almost unlimited horizons,
• externalization of Digital Services (including the most critical ones) which enables companies to multiply their effectiveness.

With robust organic growth, a solid financial structure, regular cash flow, substantial cash and cash equivalents and recognized resilience, NEURONES could be described by the Chinese proverb: "The best time to plant a tree is twenty years ago. The second-besttime is now." Assuredly an encouragement for investors, alongside committed entrepreneurs, to support future successes "Forward together...®"!

Luc de CHAMMARD

Chairman and CEO

[e-mail]

Forward together...®	1

Group focus

SELECTED ACHIEVEMENTS H1 2022

#infrastructures

For a government ministry.

In the context of ensuring compliance with the Military Planning act (Army budget): support with the creation

of a code audit campaign, implemented across a portfolio of critical applications, as well as the design of an approval file.

For a leading fast-food company.

With the aim of optimizing the management of checkout incidents (which interrupt restaurant operations): implementation of a support mechanism on several levels, built around the Lille services center and on-site intervention at head office, all operated by over

180 reconverted business experts.

For a French naval construction company. Reinforcement of the security of the Information System by migrating one part of the infrastructure

to the group's SecNumCloud ("Trusted Cloud") environment. The perimeter has been deployed in "Infrastructure as Code" mode and in a highly secure manner.

#applications

For a biological research institute. Improvement of the process used to welcome visitors

and reinforcement of premises security: implementation of "Easy-Welcome"

(a group solution available in SaaS mode), including the development of new functionalities on self check-in terminals and the reading of identity documents.

For a group operating a fleet

of aircraft. With the aim of providing its clients with a mobile solution: definition of scope, drawing up

of the design and ergonomics, then development of a smartphone flight booking application integrating

a wide range of functionalities (aircraft availability schedule, adding passengers, flight logs, etc.).

For a major producer of cosmetics.

In the context of the redesign of the Finance Information System and

the move to cloud applications: creation of a platform for the integration

and exchange of data between the various clients, partners, and suppliers on a global level.

#consulting

For a major private bank. Consulting and definition of a roadmap for the deployment of the data management policy across all levels of the business (including via the "on-boarding" of teams and contribution of best practices in terms of data governance).

A FEW REFERENCES

Banking - Insurance

Services - Consumer Goods

Public sector

Energy - Utilities - Healthcare

Industry - Public works & civil engineering

Technology - Media - Telecoms

Forward together...®

2

For a manufacturing group. Support with the creation of a subsidiary dedicated to solutions integrating Artificial Intelligence (for example, maintenance optimization software) for industry 4.0. The firm's involvement covered all operational stages: design of the offer, business plan for the start-up, marketing, and launch of the business.

For a household appliances brand.

Definition of the roadmap for the deployment, at low cost, of new boutique concepts customized to a specific local market. Steering of the project and definition, in cooperation with the in-house teams, of deliverables (documents and processes).

MAIN FIGURES

A favorable climate

Because environment and commitment go hand-in-hand, employees get involved!

Climate change must first of all be understood in order to be combatted. With this in mind, the Organization Consulting teams were made aware of the breakdown currently occurring during a friendly and fun workshop entitled "The Climate Fresco." For their part, Digital Workplace experts have become stakeholders in the ecological transition process for their entity, taking part in the inter-company environmental challenge "Only One Earth." The program includes sharing best

practice, individual and team assignments, topic-based content, and small actions to protect the environment. Another example of actions to promote empowerment? In the context of CSR actions, Business Process Management specialists launched "Green IT" week, focusing specifically on digital sobriety. This event combined meetings and a range of actions, articulated around the delivery of a complete advisory guide and tips on this subject. All these concrete initiatives are reinforcing the group's commitment to protecting our environment!

Forward together...*

For our teams, moving forward together also means finding the time to get together.

Since the start of the year, in-house events have made a great comeback. In particular, company employees dedicated to IT Service Management (ITSM) enthusiastically participated in an "escape game" which immersed them in the story of a secret service agent. As for our user support experts, they created their own challenge using XTeamQuest, an application developed in-house offering on-line challenges focused on 5 themes: Tech, Talents, Planet, Solidarity, and Fun. Regarding sport, our IT Finance specialists provided support for one of their colleagues in his preparation for the legendary Iron Man triathlon, in particular through training runs and gym sessions. Finally, Tunisia was the destination chosen by the Infrastructures and Cloud team to celebrate its employees following their commitment to the process for obtaining the highly selective SecNumCloud qualification. These are just a few examples of the special shared events which celebrate commitment, reward successful actions, and thereby contribute to accelerating the group's growth!

11.7%	+12.5%	6,050
BUSINESS OPERATING PROFIT	ORGANIC REVENUE	EMPLOYEES
RATE H1 2022	GROWTH H1 2022	AS AT JUNE 30, 2022

Forward together...®

3

Going green

Green is always in fashion when it comes to reinforcing client relationships.

The seventeenth edition of the NEURONES Golf Cup took place at the splendid Paris International Golf Club under a radiant sun. Some one hundred golfers, both experienced and less experienced, took part in the event which has become a must for NEURONES' key clients. Their goal? To get familiar with the "little white ball," improve their game, or achieve their best ever round! Thomas Levet, France's most titled golf champion and a loyal participant, provided unfailing support and encouragement to those taking part, contributing invaluable personal tips. An introduction to golf session allowed complete novices to develop their technique. For those more battle-hardened, a demanding and varied course in an exceptional setting offered them the opportunity to show off their best swings. An event combining sport and networking, once again marked by good humor, vitality, and conviviality, all of which reflects the NEURONES spirit and values!

Financial results

CONSOLIDATED INCOME STATEMENT (in millions of euros)

	H1 2021	2021	H1 2022
Revenues	289.3	579.9	327.1
Business operating profit*	31.1	64.2	38.4
% of revenues	10.8%	11.1%	11.7%
Operating profit	30.3	61.6	37
% of revenues	10.5%	10.6%	11.3%
Net financial profit	0	0.2	(0.3)
Income tax	(9.4)	(18.8)	(0.9)
Net profit	20.9	42.9	25.8
% of revenues	7.2%	7.4%	7.9%
- of which group share	18.3	37.7	22.1
- of which minority interests	2.6	5.2	3.7

* Prior to cost of bonus shares and impairment of assets.

CONSOLIDATED BALANCE SHEETAT 06/30/2022 (in millions of euros)

107.8 Non-current assets

							349.9
230.5								Shareholders' equity*
Current assets
				2.7
								Non-current provisions
						0.4
								Financial debts
232.6									217.9
Cash and cash equivalents

Other liabilities

ASSETS LIABILITIES

570.9 570.9

* Including minorities: 40.2.

SHAREHOLDER FEEDBACK

"Congratulations to your H1 2022,	"Sincere congratulations, incredible	"Congrats on another great set
they are really remarkable!"	results."	of results."
R.G.	O.S-F.	B.W.

"We really admire your remarkable profitable growth pathway."

R.B.

"Very satisfied with this investment which has given me a yield of +12.5%/year excluding dividends."

E.E.

"I must congratulate you on the rigorous management, regular and ambitious."

C.R.

Forward together...®

4

Looking in

S/4HANA: THE HIGH ROAD TOWARDS THE SMART COMPANY

S/4HANA, the most recent version of SAP, is a database which stores information not on traditional discs but in memory (HANA stands for High performance ANalytic Appliance). Powerful improvements

in access and processing performance are therefore achieved. Launched in 2015, development is continuing so as to integrate the most advanced technologies. As this can be implemented either at the client site

("on premise") or by using various forms of cloud computing (SAP's RISE offers), this offers NEURONES, a long-term partner of the publisher,

a rich source of opportunities over several years.

has a team of specialists enabling it to handle both projects involving conversion to S/4HANA for clients already using SAP and any new rollouts. Large- scale projects have already been implemented for very important clients in the water, environment, audiovisual, and energy sectors, even though over- all, migration stands at less than 15% of the total. In addition, with its expertise in the industrial sector (manufac-

As the successor to SAP ECC6, the new generation of the product, S/4HANA, is richer in terms of functionality and usages. Indeed, by integrating through external growth the skillsets of the market's most innovative stakeholders, SAP has thoroughly modernized its solution. This reworking has therefore extended the functionalities of the software (with, for example, options for automatic learning or the use of AI). Focusing on analysis and assistance with decision-making, this latest generation of the product is today addressing all managerial levels within the business which can now directly access relevant information via specific management dashboards.

Most planned conversions to S/4HANA scheduled for completion by late 2027

With the migrations postponed during the period 2020-2021, SAP has pushed back the dates set for stopping providing maintenance for its previous version (ECC6) to late 2027. The shift to S/4HANA represents a multi-year

project requiring extremely detailed preparation upstream. Key client accounts cannot therefore wait until 2027 (most probably a year of overload for integrators, with a bottleneck being likely). Most clients have therefore already scheduled their migrations, focused essentially on the period 2023 through 2026.

Significant potential business for the group

Through its pure player SAP subsidiary, strengthened by its teams composed of 300 expert consultants, NEURONES

turing, logistics chain optimization, etc.), NEURONES is capable of implementing the new S/4HANA tools for the industries of tomorrow.

And complementary opportunities surrounding S/4HANA

As a long-standing partner of the publisher and thanks to its "Innovation" unit, the group is developing its own products and tools, providing solutions designed to facilitate the complex organizational transformations (carve- outs or mergers) sometimes faced by major companies. Finally, thanks to synergies in internal skillsets, a wide range of services are provided to clients to facilitate their S/4HANA roll- out: from the development of a transformation strategy and change management, to the associated training packages. These represent additional development opportunities for NEURONES which is fully committed - and for the long-term - to its role in supporting corporate digital transfor- mation.

EXTRACT OF HIGHLIGHTS FOR H1 2022

And three in a row! In 2022, there are now three entities within the Infrastructure division which are HDS (Health Data Hosting) certified. This selective certification makes it possible to host and operate information systems for bodies and companies processing health-related data.

Consulting has hosted and led (in partnership with France Invest, Green Univers, and Maddyness) the seventh edition of Investin SmartGrids, an event at which innovative businesses, contributing to the energy transition process, meet with potential investors.

A new company is now further strengthening the group's digital offer. It is specialized in the development of made-to-measure Serverless cloud architecture (Azure, Amazon Web Services, etc.) and collaboratives solutions based on the Microsoft 365 ecosystem (SharePoint, Teams, etc.).

The user support specialist now features among the signatories of the "Manifesto for the reconversion of women into digital careers," an action in the context of the continuous measures being taken to promote gender balance within the IT sector.

For the sixth consecutive year, the entity specializing in document management has received the "HappyIndex®AtWork" label. This recognition is awarded by employees who nominate their company for the quality of its management and the working environment.

Experts in the user experience have launched "myStation," a pop-up docking station based on modular furniture units and which can

be integrated into all workspaces, facilitating in particular technical support, HR support, and the onboarding of employees.

Forward together...®

5