GUILLEMOT (EPA:GUI) - GUILLEMOT CORPORATION : 2020 ANNUAL RESULTS

Transparency directive : regulatory news

25/03/2021 18:00

Carentoir, March 25, 2021

                              2020 ANNUAL RESULTS

Carentoir, March 25, 2021

Guillemot Corporation's financial statements (audited financial statements
approved by the Board of Directors at its meeting of March 24, 2021, pending
the statutory auditors' report on certification) are as follows:

(EURm)
January 1 - December 31, 2020
                      Dec 31, 2020  Dec 31, 2019  Change

Turnover                  120.6         60.9       +98%
Thrustmaster              112.6         56.2      +100%
Hercules                    8.0          4.7       +70%
Current operating income   19.0         -2.6
Operating income           23.1         -2.6
Financial income *          7.4         -4.6
Corporate income tax       -0.7          0.8
Consolidated net income    29.8         -6.4
Basic earnings per share  EUR1.95      -EUR0.42

* Financial income includes the cost of net financial debt as well as other
financial expenses and income.

The Group posted strong growth in the year, with full-year turnover up 98% at
EUR120.6 million.

The global COVID-19 pandemic meant 2020 was an unusual year for the Group,
characterized by a new market configuration. Consumers showed more interest in
video games and enhanced their gaming equipment.

Current operating income came in at a record EUR19.0 million in 2020. Operating
income totaled EUR23.1 million after recognizing a reversal of impairment on
the Thrustmaster brand, now valued in the financial statements at its original
purchase cost of EUR9.4 million. The accounting gross profit margin rose almost
5 percentage points.

At the same time, total expenses were up 39%, with the workforce increasing 7%
over the period.

Financial income of EUR7.4 million included a EUR7.7 million revaluation gain
on current financial assets (available-for-sale securities) consisting of
443,874 Ubisoft Entertainment shares. Consolidated net income for the year came
in at EUR29.8 million, compared with a consolidated net loss of EUR6.4 million
in 2019. At its meeting of March 24, 2021, the Board of Directors of Guillemot
Corporation S.A. decided to propose the payment of a dividend of EUR0.25 per
share.

In 2020, the Group invested EUR5.4 million in research and development,
equating to 4.5% of consolidated turnover.

Balance sheet items

(EURm)                   Dec 31, 2020  Dec 31, 2019

Shareholders' equity         79.7          50.3
Inventories                  20.6          21.4
Net debt*                   -18.2          10.2
Current financial assets
(AFS securities)             35.0          27.3

* Available-for-sale (AFS) securities are not taken into account when
calculating net debt.

Group shareholders' equity stood at EUR79.7 million at December 31, 2020. The
Group generated strong cash flow in 2020, with net cash from operating
activities coming in at EUR32 million. Net debt at December 31, 2020 was
negative at -EUR18.2 million. The Group also has a portfolio of 443,874 Ubisoft
Entertainment shares valued at EUR35.0 million at December 31, 2020.

2020 highlights

* The Group's alignment with new distribution channels meant it was able to
successfully supply consumers thanks to direct shipping agreements with the
largest global e-tailers.

* The Group ramped up production in response to the success of its flying and
racing ranges.

* The Group broadened its product range, launching the Thrustmaster Civil
Aviation (TCA) line to coincide with the release of Microsoft Flight Simulator,
the new ESWAP X PRO CONTROLLER to coincide with the release of the Xbox Series
X/S consoles and, under the Hercules brand, the new DJControl Inpulse 500
console.

* The Group expanded its presence in the eSports market through a number of
partnerships - for example with "the Ferrari Esports FDA Team and Ferrari
Esports Series", the "Le Mans Esports Series and 24 Hours of Le Mans Virtual",
"Jean Alesi Esports Academy" and "DiRT Rally 2.0 World Series" - and its Gran
Turismo range of racing wheels officially licensed by Polyphony Digital.

Market developments and strategy

* The Group has observed that consumers are putting more time and effort into
their passion and interactive home entertainment. This is reflected in a desire
to add to their simulation and eSports gear so as to enjoy higher levels of
realism and superior performance.

* The Group has noted the potential this represents for Hercules and
Thrustmaster and will be investing heavily in stepping up the development of
its ranges of products and services.
The Group aims to keep in step with these latest developments so as to continue
to deliver sustained growth.

2021 outlook

The Group is observing strong momentum in the racing and flying accessories
markets.
For 2021, the Group is forecasting turnover in excess of EUR150 million and
current operating income in excess of EUR20 million.

Guillemot Corporation designs and manufactures interactive entertainment
hardware and accessories. The Group offers a diversified range of products
under the Hercules and Thrustmaster brands. Active in this market since 1984,
the Guillemot Corporation Group currently operates in ten countries (France,
Germany, Spain, the United Kingdom, the United States, Canada, Italy, Belgium,
Romania and China/Hong Kong) and distributes its products in more than 140
countries worldwide. The Group?s mission is to offer high-performance,
user-friendly products that maximize enjoyment for end users of digital
interactive entertainment solutions. Contact: Guillemot Financial Information
? Tel.: +33 (0) 2 99 08 08 80 - www.guillemot.com

APPENDICES
(All figures in EURk)

Consolidated income statement to December 31, 2020

(EURk)
                          Dec 31, 2020  Dec 31, 2019

Net turnover                 120 619        60 875
Purchases                    -59 656       -28 782
External expenses            -17 554       -13 150
Employee expenses            -11 000        -9 777
Taxes and duties                -779          -346
Additions to amortization
and depreciation              -3 616        -3 424
Additions to provisions       -3 488        -1 140
Change in inventories          1 849        -3 198
Other income from ordinary
activities                      254            397
Other expenses from ordinary
activities                   -7 659         -4 045
Current operating income     18 970         -2 590
Other operating income        4 110              0
Other operating expenses          0              0
Operating income             23 080         -2 590
Income from cash and cash
equivalents                       8             16
Cost of gross financial debt    137            391
Cost of net financial debt     -129           -375
Other financial income        7 661              0
Other financial expenses       -132         -4 262
Corporate income tax           -699            813
Net income before minority
interests                    29 781         -6 414
O/w net income from
discontinued operations           0              0
Attributable to minority
interests                         0              0
Group net income             29 781         -6 414
Basic earnings per share       1,95          -0,42
Diluted earnings per share     1,95          -0,42

Consolidated balance sheet at December 31, 2020

ASSETS
(EURk)                    Dec 31, 2020   Dec 31, 2019

Goodwill on acquisitions         0              0
Intangible assets           15,425         11,401
Property, plant and
equipment                    4,499          4,598
Financial assets               447            268
Tax assets                     404            880
Deferred tax assets          3,489          1,149
Non-current assets          24,264         18,296
Inventories                 20,611         21,390
Trade receivables           28,245         19,579
Other receivables            3,887          1,644
Financial assets            34,995         27,334
Current tax assets             142            955
Cash and cash equivalents   29,024          5,851
Current assets             116,904         76,753
Total assets               141,168         95,049

LIABILITIES AND EQUITY   Dec 31, 2020   Dec 31, 2019
(EURk)
Capital (1)                 11,771         11,771
Premiums (1)                10,551         10,551
Reserves and consolidated
income (2)                  57,352         27,440
Currency translation
adjustments                     35            580
Group shareholders? equity  79,709         50,342
Minority interests               0              0
Consolidated shareholders?
equity                      79,709         50,342
Employee benefit
liabilities                  1,383          1,208
Borrowings                   6,020          8,007
Other liabilities                0              0
Deferred tax liabilities         0              0
Non-current liabilities      7,403          9,215
Trade payables              31,007         16,409
Short-term borrowings        4,853          8,027
Taxes payable                3,470            427
Other liabilities           14,676         10,587
Provisions                      50             42
Current liabilities         54,056         35,492
Total liabilities and
equity                     141,168         95,049

(1) Of the consolidating parent company.
(2) Of which net income for the period: EUR29,781k.

Consolidated statement of cash flows to December 31, 2020

(EURk)                                                       Dec 31,   Dec 31,
                                                              2020      2019
Cash flows from operating activities

Net income from consolidated companies                       29,781     -6,414
+ Additions to amortization, depreciation and provisions
(except on current assets)                                    4,802      3,968
- Reversals of amortization, depreciation and provisions     -4,130          0
-/+ Unrealized gains and losses arising from changes in
fair value                                                   -7,661      3,950
+/- Expenses and income arising from stock options                0          0
-/+ Capital gains and losses on disposals                         0         -3
Change in deferred taxes                                     -2,339       -275
Operating cash flow after cost of net financial debt         20,453      1,226
Cost of net financial debt                                      129        375
Operating cash flow before cost of net financial debt        20,582      1,601
Currency translation adjustment on gross cash flow from
operations                                                      -34        -13
Inventories                                                     779      3,535
Trade receivables                                            -8,665      4,200
Trade payables                                               14,599     -2,473
Other                                                         4,852     -1,320
Change in working capital requirement                        11,565      3,942
Net cash flows from operating activities                     31,984      5,155

Cash flows from investing activities
Acquisitions of intangible assets                            -2,322     -2,345
Acquisitions of property, plant and equipment                -1,226       -702
Disposals of property, plant and equipment and intangible
assets                                                           23          5
Acquisitions of non-current financial assets                     -3         -7
Disposals of non-current financial assets                        52         32
Net cash from acquisitions and disposals of subsidiaries          0          0
Net cash flows from investing activities                     -3,476     -3,017

Cash flows from financing activities
Increases in capital and cash injections                          0          0
Dividends paid                                                    0     -1,980
Borrowings                                                      359     11,000
Repayment of shareholders? current accounts                       0          0
Repayment of borrowings                                      -3,979     -4,326
Principal repayments and interest on lease liabilities
(IFRS 16)                                                      -174       -441
Other cash flows from financing activities                        0          0
Total cash flows from financing activities                   -3,794      4,253
Impact of foreign currency translation adjustments             -178         91

Change in cash                                               24,536      6,482
Net cash at the beginning of the period                       4,477     -2,005
Net cash at the end of the period                            29,013      4,477

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GUILLEMOT (EPA:GUI) - GUILLEMOT CORPORATION : 2020 ANNUAL RESULTS

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