Press releases

Feb 16 2009

Consolidated revenue in 2008 were EUR 1,765.7m, an increase of 24.7% compared to FY 2007. The negative impact from exchange rate fluctuations in 2008 was EUR 124.8m [1]. Revenue grew by 0.9% on a like for like basis.

The fourth quarter 2008 activity was in line with expectations: revenue saw organic growth of 1.0% compared to Q4 2007 and order intake was significantly higher. The order intake to sales ratio was 1.31 in the fourth quarter 2008. As of 31st December 2008 this ratio was 1.07.

The operating margin [2;3] rate for FY 2008, which was higher than in FY 2007 (7.3%), should be in excess of our previous guidance of 7.5%.

Thanks to good operating cash flow generation, net financial debt as of 31/12/08 should be below EUR 250m [3] (compared to an initial guidance of EUR 300m). In addition, the book value [3] of the pension fund deficits should be lower than at 30/06/08. Moreover, the banking covenants will be largely respected.

2008 consolidated revenue

(€ million)	12 months 2007	12 months 2008	Growth
Sales	1 416.2	1 765.7	24.7%
Currency variations related to 2007 perimeter	-56,8
Change in consolidation scope (after currency effect associated with this change)	+390[1]
Pro forma sales	1 749.4	1 765.7	0.9%

2008 revenue by geographic zone

(€ million)	12 months 2007*	12 months 2008	Organic growth
France	534.3	535.8	0.3%
United Kingdom	750.4	740.5	-1.3%
Germany	227.7	241.7	6.1%
Other Europe	237.0	247.7	4.5%
Total	1 749.4	1 765.7	0.9%

2008 revenue by business line

(€ million)	12 mois 2007*	12 mois 2008	Croissance organique
Managed Services and Business Process Outsourcing	671.6	681.4	1.5%
Consulting and Systems Integration	1077.8	1084.3	0.6%

* Like for like sales (base 2008)

Q4 2008 Revenue

Q4 2008 revenue by geographic zone

(€ million)	Q4 2007*	Q4 2008	Organic growth
France	144.0	145.0	0.7%
United Kingdom	176.3	180.9	2.6%
Germany	63.8	61.8	-3.2%
Other Europe	70.7	71.6	1.2%
Total	454.9	459.3	1.0%

* Like for like sales (base 2008)

In Q4 2008, consolidated sales saw an organic growth of 1.0% compared to Q4 2007. Managed Services and Business Process Outsourcing increased by 5.1%. As far as vertical sectors are concerned, the public sector saw sharp organic growth of 7.8% and Finance remained with its positive trend with a rise of +1.8%. In addition, and in line with expectations, order intake in Q4 2008 were markedly higher than in the same period in the previous financial year which resulted in a ratio of order intake to sales of 1.31 for the quarter. At December 31 2008, this ratio of order intake to sales was 1.07, much the same as that observed at December 31 2007.

In France, where Managed Services is enjoying robust growth, organic growth came to +0.7%. All told, the second half of 2008 rebounded with organic growth of 2.7% compared to a decline of 2.2% in the first half.

The United Kingdom is benefitting from a favourable trend both in terms of revenue and synergies resulting from the integration. The rebound in sales observed in Q3 2008 (+1.9%) was confirmed by organic growth of +2.6% in the fourth quarter. In fact, good trading conditions over the second half of 2008 more than made up for the negative effect of the end of the LSC and My Travel contracts in the second half of 2007, before the closing of Xansa acquisition.

In Germany, the 3,2% drop in sales reflects a prudent and proactive management of staff in a more difficult economic climate and resulted in the end of the embeded growth which had favoured the first half of 2008. Activity remains robust with a ratio of new orders to sales of 1.06 in Q4 2008. As of 31st December 2008 this ratio was 1.04.

In the Other Europe zone, organic growth was 1.2% in the fourth quarter. Scandinavian performance continues to be very good. Restated for sales of equipment and the divestment of the payment terminals business, organic growth for the zone over the quarter was 3.0%.

Full year results for 2008 will be announced in March 16 2009 after the close of the market and discussed at a SFAF meeting on March 17 2009

[1] Currency impact on 2007 historic perimeter (- EUR 56.8m) + currency impact on 2008 consolidation (-EUR 68m) = EUR -124.8m
[2] Before amortization of intangible assets arising from business combinations. The operating margin is the Group's key indicator. It is defined as the difference between sales and operating costs, the latter being equal to the costs of services rendered (costs necessary for the implementation of projects), sales costs and General and Administrative costs.
[3] Unaudited figures