ORCHESTRA-PREMAMAN (EPA:KAZI) First semester revenue

Transparency directive : regulatory news

10/10/2019 19:33

October 10th, 2019

- First semester revenue (March 1st to August 31th, 2019) increased by +0.9%
  to EUR280.9M, driven by a growth on the French market (+0.8%) despite
  deteriorated gross margin condition

- A first semester marked by a growth in Textile business (+2.9%) and Childcare
  business (+9.2%)

- Significant growth of club members: +14.5% year-on-year

                           MARKET ENVIRONMENT

In a difficult market environment and to protect the Orchestra-Prémaman
Group's cash, several actions have been taken since November 2018:

- Negotiation of maturity schedules with main suppliers;

- Products purchases reduction leading to stock rotation;

- Acceleration of ageing stock reduction through partnerships with digital or
  web major players (Showroom Privé and Veepee). These measures had a
significant impact on Group's profitability on 2019/2020 financial year;

- Restriction in Group's investment (stores network, recruitment freeze,...);
  and

- Public authorities' solicitation with obtaining a EUR12.2M total amount
  settlement (EUR2.4M social contribution run across calendar 2019 year and
  EUR9.7M of VAT of which the settlement has been extended from June to
  December 2019), in connection with social movements in France ("Gilets
jaunes").

All those actions have now been completed by commercial initiatives:

- In-store product offering development and the targeted opening of Childcare
  corners in some stores which lacked it;

- Prémaman brand name offering development; and

- Significant investment in communication (representing 3% of turnover).

All of these actions helped to restore a stability of the turnover during the
first-half of the 2019/2020 financial year compared to last year, as outlined
below.

However, this stability of the turnover has been made under significant
deteriorated gross margin conditions, which affected the Group's cash and
leaded to the opening of the Safeguard proceedings in favor of
Orchestra-Prémaman, as announced in the press release of September 24th,
2019.

                FIRST SEMESTER 2019/2020 REVENUE (unaudited data)
                      (March 1st, 2019 - August 31st, 2019)

IFRS - In EURm             1st Semester  1st Semester   H1 2019/2020 vs.
                           2018/2019     2019/2020       H1 2018/2019

Branches                      149.1         149.9           0.5%
Affiliate commission          114.9         110.8          -3.5%
Internet                        8.1          10.6          30.3%
Trading & Misc.                 6.3           9.6          52.9%
Consolidated revenue          278.4         280.9           0.9%
of which France               173.7         175.1           0.8%
of which Belux                 36.1          35.0          -3.1%
of which International
(excl. Belux)                  68.6          70.8           3.2%

During the first semester of 2019/2020 (from March 1st, 2019 to August 31st,
2019), Orchestra-Prémaman Group realized a consolidated Revenue of EUR280.9M,
up to +0.9% compared to the same period last year.
The business in France (62.3% of first semester Revenue) increased by +0.8%
driven by:
- Textile business with a +7.5% increase despite a difficult context of the
textile market (down by - 1.9%). This performance is due to Orchestra magazine
distribution since March 2019;
- Childcare business remains dynamic thanks to a +11.7% increase compared to
previous year.

Over the semester, the situation is more variable outside France: foreign
entities without Belux (25.2% of first semester Revenue) posted an increase of
+3.2% whereas Belux business (12.4% of first semester Revenue) is down by
-3.1%.

The Web business continues to expand (+30.3%) driven by strong Childcare sales
on this channel (+38.3%) and the growth of Web sales in France (+25.6%).

As of August 31st,2019 the Group has 2.0 million club members, an increase of
+14.5% compared to August 31st,2018. This increase is due to proactive policy
in recruitment and retention of Club members, ensuing future revenues. As a
reminder, the Club ensures more than 90% of the Group revenue.

SECOND QUARTER 2019/2020 REVENUE (unaudited data)
(June 1st, 2019 to August 31st, 2019)

IFRS - In EURm             2nd Quarter   2nd Quarter     Q2 2019/2020 vs.
                           2018/2019     2019/2020       Q2 2018/2019
Branches                      74.6          75.7             1.4%
Affiliate commission          58.3          55.9            -4.2%
Internet                       3.8           5.1            34.8%
Trading & Misc.                2.5           4.6            83.3%
Consolidated revenue         139.3         141.3             1.4%
of which France               89.2          90.7             1.7%
of which Belux                17.7          17.0            -3.9%
of which International
(excl. Belux)                 32.4          33.5             3.7%

During the second quarter of 2019/2020, i.e. between June 1st, 2019 to August
31st, 2019, the Orchestra-Prémaman Group posted consolidated sales of
EUR141.3M, up +1.4% relative to the year- earlier period.

STORES NETWORK (unaudited data)

in number and thousands of m2
                                                        Variation
                                                      31/08/2019 vs.
                                                       28/02/2019
                    28/02/2019          31/08/2019
                  Number  Surface   Number  Surface  Number  Surface
                            area              area             area

Branches           316      200.6   325       209.3     9       8.8
Affiliate
commission         229      113.9   217       107.0   -12      -6.9
Total              545      314.4   542       316.3    -3       1.9
Textile            377      126.1   374       126.8    -3       0.7
Mixed stores and
megastores         146      177.2   150       181.3     4       4.1
Outlet Stores       22       11.1    18         9.2    -4      -1.9
Total              545      314.4   542       317.3    -3       2.9
o.w. France        305      199.3   306       201.1     1       1.9
o.w. Belux          58       52.5    57        51.6    -1      -0.9
o.w. International
(excl. Belux)      182       62.7   179        64.6    -3       1.9

In the context of a tough clothing market, the group decided to reduce its
investment leading to a stability of the stores network.

Large format stores (mixed and megastores) now represent more than half of the
sales area and 150 stores.

Orchestra-Prémaman Group confirms its strategy of speeding up the disposal of
stocks and is preparing a Safeguarding Plan to restructure its long-term debt
(which can be settled over a period of up to ten years). Debt payment prior to
the beginning of the Safeguard proceedings is suspended while the restructuring
plan is being processed.

Information are regularly communicated to the market upon the procedure
evolution.

                              Next appointment
  Consolidated 2019/2020 first semester results, on November 29th, 2019 before
                              Stock opening

                                Contacts:
         ACTIFIN - Stéphane RUIZ - 01 56 88 11 15 - sruiz@actifin.fr
    ACTIFIN - Victoire DEMEESTERE - 01 56 88 11 24 - vdemeestere@actifin.fr

                            ORCHESTRA-PREMAMAN
                A public limited company with capital of EUR12,159,825
    Headquarter: 200 avenue des Tamaris, Zac Saint Antoine, 34130 Saint-Aunès.
  Registration n°: 398 471 565 in the Montpellier Trade and Companies Register

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19/06/2020 19:18

ORCHESTRA-PREMAMAN (EPA:KAZI) First semester revenue

Transparency directive : regulatory news

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