DEVOTEAM (EPA:DVT) Devoteam: Q3 2017 revenues growing 12.2%

Transparency directive : regulatory news

14/11/2017 17:55

Press release

Q3 2017 revenue growing 12.2%, of which 7.8% organically, to EUR125.2 million

Growth driven by SMACS (Social Mobile Analytics Cloud Security), representing
half of the business of the Group

Full-year objectives confirmed

Paris, 14 November 2017

In millions of euros     Q3 2017   Q3 2016(1)  9m 2017   9m 2016(1)

Revenue                    125.2     111.6       381.7     349.7
Variation                  12.2%                  9.1%
L-f-l variation             7.8%                  7.8%

(1) Restated from Between: in accordance with IFRS 5 related to assets held for
sale, the operations of Between have been classified on a single line of the
income statement named "Net result of discontinued operations, net of tax". As
a consequence, these operations are not included in the revenue.

(2) At comparable perimeter and exchange rates.

Devoteam (Euronext Paris: DVT) reported revenues of EUR125.2 million for the
third quarter of 2017, representing a 7.8% increase compared to the third
quarter of 2016, excluding changes in currency and scope, and despite a
negative calendar effect (number of working days 1.3% lower than in the third
quarter of 2016).

SMACS business represented half of the business of the Group in the third
quarter of 2017, and explains the Group's strong organic growth.

At current exchange rates and perimeter, consolidated revenues have increased
by 12.2% during the third quarter. It included negative effects of currency for
0.6 point (UAE dirham and Turkish lira, mainly). The integration of TMNS as of
1 July 2017 had a positive impact of 5 points on the growth of the quarter with
a contribution of EUR5.4 million to the consolidated revenues during the third
quarter of 2017.

Analysis of Q3 2017 revenue by region

France reported revenues of EUR61.4 million in the third quarter of 2017,
growing 12.9% year-on-year, and driven by the Security, Cloud and Google
activities.

At constant scope and exchange rates, the revenue of the Northern Europe &
Benelux region increased by 1.6%; the decrease of the Group's Telecom business
in the United- Kingdom was offset by the growth of the Danish and Norwegian
subsidiaries.

The Central Europe region achieved revenues of EUR14.4 million, representing an
organic growth of 19.7%, as a result of a strong growth in Germany.

Rest of the world generated revenues of EUR17.1 million, decreasing 6.5%
organically compared to the third quarter of 2016. Last year, the region
benefitted from one-off revenues of EUR1.6 million linked to a reselling
project for the medical sector in Turkey. Excluding this project, the region
would have presented an organic growth of 2.4% during the third quarter; the
total organic growth of the Group would also have been 1.6 point higher if
restated from the same project.

Headcount and utilization rate

On 30 September 2017, the Group employed 4 752 people compared to 4 422 people
on 30 June 2017. The acquisition of TMNS resulted in the integration of 202
people in the third quarter of 2017. Excluding the change in scope, the
headcount pursued the growth with a net increase of 128 people, and despite a
strained labour market.

The ratio of billable headcount to total headcount stood at 86.2% on 30
September 2017, compared to 85.8% on 30 June 2017.

During the third quarter of 2017, the utilization rate of internal resources
improved by one point to 85.2% compared to the second quarter of 2017, and
almost steady compared to the third quarter of 2016.

Changes in scope

The Group finalised the acquisition of 80% of D2SI shares, a leader in AWS
Public Clould technologies in France, which is consolidated from 1 October
2017.
The disposal of control in Between should be finalized by the end of the
calendar year  2017.

2017 outlook

The Group confirmed the previously communicated guidance for the year 2017:

* Consolidated revenues of EUR530 million;
* Operating margin close to 10%.

Financial calendar

Press release after market closed

Q4 2017            Q1 2018
7 March 2018       16 May 2018

Appendix Contribution of the regions to the revenue

In millions of euros Q3 2017  Q3 2016   9m 2017  9m 2016
                              restated           restated

France                61.4      54.4      193.7   169.3
Variation            12.9%                14.4%
L-f-l variation      12.9%                14.4%
Northern Europe &
Benelux               32.0      26.3       93.8    84.7
Variation            21.8%                10.7%
L-f-l variation       1.6%                 1.7%
Central Europe        14.4      12.0       42.3    34.7
Variation            20.0%                21.7%
L-f-l variation      19.7%                16.1%
Rest of the world     17.1      19.0       52.2    57.0
Variation            -9.8%                -8.5%
L-f-l variation      -6.5%                -7.4%
Corporate & other      0.1      (0.2)      (0.3)   (0.3)
Divestments          - 0.0                - 4.2
Total                125.2     111.6      381.7   349.7
Variation            12.2%                 9.1%
L-f-l variation       7.8%                 7.8%

Of which impact of significant acquisitions:

In millions of euros       Q3 2017   Q3 2016    9m 2017   9m 2016

Northern Europe & Benelux    5.4                  8.1
HNCO, consolidated as of
1 July 2016 (estimate)                            1.6
Globicon, consolidated as
of 1 July 2016 (estimate)                         1.1
TMNS, consolidated as of
1 July 2017                  5.4                  5.4
Central Europe                                    1.9
Q-Partners Consulting,
consolidated as of
1 July 2016                                       1.9

Discontinued operation:

In millions of euros     Q3 2017    Q3 2016   9m 2017   9m 2016
Between                      -        19.2       -        56.5
Variation                 -100.0%             -100.0%
L-f-l variation           -100.0%             -100.0%

Utilization rate of internal resources excluding divested entities

Q1 2016   Q2 2016   Q3 2016   Q4 2016   2016   Q1 2017   Q2 2017   Q3 2017
82.9%      85.1%     85.5%    84.1%   84.4%    82.9%     84.2%     85.2%

Changes in exchange rates

For EUR1          Average rate    Average rate   Variation
                    9m 2017         9m 2016

UAE dirham           4.091           4.099          0.2%
Swiss franc          1.095           1.095           -
Czech koruna        26.548          27.035          1.8%
Danish krone         7.437           7.447          0.1%
Algerian dinar     122.676         121.737         -0.8%
Pound sterling       0.873           0.803         -8.1%
Moroccan dirham     10.893          10.883         -0.1%
Mexican peso        21.009          20.414         -2.8%
Norwegian krone      9.236           9.380          1.6%
Zloty                4.265           4.358          2.2%
Serbian dinar      122.108         122.108           -
Tunisian dinar       2.651           2.348        -11.4%
Turkish lira         4.003           3.276        -18.2%
US dollar            1.114           1.116          0.2%

Glossary

Restated: restated from Between, in accordance with IFRS 5 "Non current assets
held for sale and discontinued operations" which requires the net profits and
losses of the activity to be presented as "Net result of discontinued
operations, net of tax" in the consolidated income statement.

Between is a Dutch subsidiary specializing in "sourcing" of IT professionals.
France: French operations.

Northern Europe & Benelux: Belgium, Denmark, United-Kingdom, Luxembourg,
Netherlands including TMNS in Switzerland, Germany and Serbia, and Norway
excluding divested activities.

Central Europe: Austria, Czech Republic, Germany and Poland.

Rest of the world: Middle East, Algeria, Spain, Italy, Morocco, Mexico, Panama,
Tunisia and Turkey.

Corporate & other: headquarter activities which cannot be allocated directly to
the operational regions.

Divestments or divested entities: in 2016, divested activities include Grimstad
activities in Norway, deconsolidated as of 1 May 2016, and Devoteam Genesis,
deconsolidated as of 1 July 2016.

Revenue and group contribution: the revenue of a region is the contributive
revenue and is defined as the total revenue (internal and external) of the
region minus the costs of internal subcontracting. It reflects the contribution
of the region to the revenue of the Group produced with own resources. The sum
of the contributions of the regions corresponds to the consolidated revenue of
the Group.

Operating margin: current operating result excluding the cost of share-based
payments and the amortization of intangible assets resulting from
acquisitions.

Like-for-like or l-f-l variation: variation at comparable perimeter and
exchange rates.

Utilization rate of resources: number of working days of billable employees
that were billed to a client compared to the total number of available days
excluding holidays.

SMACS: Social Mobile Analytics Cloud Security.

ABOUT DEVOTEAM

At Devoteam, we deliver innovative technology consulting for business.
We are 4,500 professionals dedicated to ensuring our clients win their digital
battles.

Present in 17 countries in Europe and the Middle East 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.

Devoteam achieves yearly revenue above EUR500 million.
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.fr

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