DEVOTEAM (EPA:DVT) Devoteam: Chiffre d'Affaires T1 2016 / Q1 2016 revenues

Transparency directive : regulatory news

18/05/2016 17:48

Press release

Q1 2016 revenue at EUR133.4 million, strong growth of 15.5% and 13.7%
organically

Disposal of a non-core business in Norway to accelerate strategic re-focus

Paris, May 18th 2016

In millions of euros                    Q1 2016    Q1 2015

Revenue                                   133.4      115.5
Variation                                 15.5%
L-f-l variation*                          13.7%
L-f-l variation* excluding Between         6.2%

*At comparable perimeter and exchange rates

Devoteam (Euronext Paris: DVT) announced revenues of EUR133.4 million for
the quarter ended March 31st 2016, representing a 13.7% year-on-year growth
at constant scope and exchange rates.

Consolidated revenues have increased 15.5% compared to the first quarter of
2015, including a negative impact arising due to currency fluctuations in
certain countries (Norwegian krone, Pound sterling, Turkish lira). The
Group's acquisition and divestment strategy resulted in 2.5% growth
compared to the first quarter of 2015. The acquisitions of Drago and myG
contributed for EUR3.9 million of consolidated revenues over the first
quarter 2016, whereas Exa ECS, divested last year, had contributed for
EUR1.1 million of consolidated revenues over the first quarter of 2015.

Stanislas de Bentzmann, co-CEO of Devoteam, commented on these results:

"In the continuity of 2015, Devoteam's growth in Q1 2016 benefited from the
repositioning of the Group on the Digital offers, particularly driven by
the Google activities, the user experience and the management of digital
transformation projects. The integration of Drago in Spain, and the disposal
in early May of our system integration activity  in Grimstad, located in
Southern Norway, are speeding up the transformation of our portfolio."

Analysis of Q1 2016 revenue by region

The revenue of the first quarter of 2016 in France stood at EUR56.4 million,
growing almost 12% organically, and driven by a strong growth in the Google
and digital transformation activities.

Northern Europe and Benelux (excluding Between), achieved a EUR28.4 million
contribution to Group revenues, with a 7.2% organic growth thanks to Denmark
and Belgium.

The Central Europe region achieved revenues of EUR13.0 million, a 0.4%
organic growth compared to the same quarter in 2015. It reflected a
stabilization of the revenue in Germany and a downsizing in Poland (related
to the exit from the historical activities of system integration), balanced
by a strong increase of business in Czech Republic.

Rest of the world (North Africa, Middle East, Italy and Spain) reported
revenues at EUR16.2 million for the first quarter of 2016. It represented a
4.9% organic decrease and is explained by the Group's strategy to be
selective in delivering low margin projects in Turkey, Morocco and Algeria.
Total growth is above 23% due to the inclusion of Drago into this reporting
segment.

Between, the broker activity in the Netherlands, doubled revenues year-on-
year, generating a successful return on its sales investments in 2015.

Headcount and utilization rate

On March 31st  2016, the Group employed 4 016 people compared to 3 957
people on December 31st 2015.

The ratio of billable headcount to total headcount is almost stable at
84.4% compared to 84.5% the year before.

The Group showed a utilization rate of internal resources excluding
divestments at 82.8% for the first quarter, in line with the first quarter
of 2015.

Changes in scope

In a continuous effort of portfolio focus, the Group sold its Norwegian
system integration business, for a non-significant amount. This business,
located in Grimstad in the South of Norway, employs around 30 people and
reported revenues of EUR5.6 million in 2015. In the first quarter of 2016,
it did not generate a profit and retained exposure for the Group to the oil
and gas sector. The deal should impact Group results with a loss on asset
disposal of around EUR1 million in 2016; the exit from the Group
consolidation perimeter will be effective on May 1st 2016.

Over the quarter, the Group also acquired for EUR3.6 million worth of shares
belonging to minority shareholders in core business subsidiaries.

Free share plan

To support the development and transformation process of Devoteam, the
Board will submit to the next Shareholders' meeting an approval for a free
share plan, representing circa 2% of the capital. The plan should benefit
the key employees of the Group.

This will lead to the recognition of a cost of stock options of about EUR2
million each year  from 2016 to 2018. These stock options would be subject
to the achievement of 2018 financial objectives and paid from company-owned
Devoteam shares.

2016 outlook

Based on the first quarter of 2016 and despite the disposal in Norway, the
Group confirmed the 2016 full-year revenue target of EUR525 to EUR535
million and an operating margin level exceeding 7.5%.

2016 financial calendar

Press release after market closed      Shareholders'   Dividend
Q2 2016     Q3 2016     Q4 2016        meeting        payment
September    November     To be          June           July
7th 2016    15th 2016   announced      17th 2016      1st 2016

                                  Appendix

Analysis of the revenue by region

In millions of euros    Q1 2016  Q1 2015

France*                    56.4     50.3
Variation                 12.3%
L-f-l variation           11.9%
Northern Europe & Benelux  28.4     27.1
Variation                  4.8%
L-f-l variation            7.2%
Central Europe             13.0     13.0
Variation                  0.2%
L-f-l variation            0.4%
Rest of the world*         16.2     13.2
Variation                 23.2%
L-f-l variation           -4.9%
Corporate                 (0.1)      0.0
Between                    18.2      9.0
Variation                102.7%
L-f-l variation          102.7%
Divestments (2015-2016)     1.1      2.9
Total                     133.4    115.5
Variation                 15.5%
L-f-l variation           13.7%
L-f-l variation excluding
Between                    6.2%

*Of which contribution of the acquisitions:

In millions of euros   Q1 2016  Q1 2015
France                      0.2    -
myG France, consolidated
as of October 1st 2015      0.2    -
Rest of the world           3.8    -
Drago, consolidated as
of October 1st 2015         3.7    -
myG Spain, consolidated
as of October 1st 2015      0.1    -

Utilization rate of internal resources

Utilization rate of internal resources, excluding divested entities

Q1 2015   Q2 2015   Q3 2015   Q4 2015   FY 2015   Q1 2016
83.0%      84.5%     85.0%     84.8%     84.3%     82.8%

Changes in exchange rates - Q1 2016

For EUR1      Average rate  Average rate  Variation
                Q1 2016       Q1 2015

UAE dirham        4.051         4.144        2.3%
Swiss franc       1.096         1.075       -1.9%
Czech koruny     27.038        27.592        2.1%
Danish krone      7.461         7.449       -0.2%
Algerian dinar  119.018       104.423      -12.3%
Pound sterling    0.770         0.744       -3.4%
Moroccan dirham  10.828        10.754       -0.7%
Norwegian krone   9.520         8.728       -8.3%
Zloty             4.361         4.190       -3.9%
Tunisian dinar    2.239         2.174       -2.9%
Turkish lira      3.247         2.772      -14.6%

Glossary

Like-for-like variation: At comparable perimeter and exchange rates.

Between: "Between", a subsidiary operating in the Netherlands on the market
of sourcing of IT professionals, has a very volatile contribution to revenue
since, depending on the terms and conditions of the contracts signed, the
revenue consolidated at Group level may be based on the contract's gross
margin or on the full amount invoiced to the final customer. As a
consequence, the Group decided to isolate this subsidiary when calculating
the growth rate of the consolidated revenues.

Divestments (2015-2016) or divested entities: In 2016, Divestments include
Grimstad activities in Norway, deconsolidated on May 1st 2016. In 2015, it
also includes Exa ECS, deconsolidated on April 1st 2015.

Utilization rate of internal resources: Measures the percentage of working
hours (excluding paid holidays) of billable employees that were billed to a
client.

Operating margin: Defined as the current operating result before
amortization of intangible assets related to acquisitions and excluding the
impact of stock options.

ABOUT DEVOTEAM

At Devoteam, we deliver innovative technology consulting for business. We
are 4,000 professionals dedicated to ensuring our clients win their digital
battles.

Present in 20 countries and drawing on 20 years of experience, we improve
business performance making their companies truly digital. We build IT
infrastructure for digital, and make sure people are along for the ride.

In 2015, Devoteam achieved revenues of EUR485m.

At Devoteam, we are Digital Transformakers.

ISIN: FR 0000073793, Reuters: DVTM.PA, Bloomberg: DEVO FP

Executive Board

Stanislas de Bentzmann,
Co-CEO
stanislas.de.bentzmann@devoteam.com

Financial communication

Evelyne Broisin,
Group controlling & investor relations director
evelyne.broisin@devoteam.com

Perrine Angibault,
Group reporting & investor relations manager
perrine.angibault@devoteam.com

Press contacts

Le Public Système
Célina Da Silva,
cdasilva@lepublicsysteme.fr
+33 6 16 79 29 32

www.devoteam.com

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25/10/2021 18:05

DEVOTEAM (EPA:DVT) Devoteam: Chiffre d'Affaires T1 2016 / Q1 2016 revenues

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