Altran_20110314_PR_EN_01

Playground for innovationPlayground for innovation2010 Results, 14th March 2011

Yves de Chaisemartin - CEO

Gérald Berge - CFO

Disclaimer

■This presentation contains forward-looking statements (as defined in the United States■This presentation contains forward looking statements (as defined in the United StatesPrivate Securities Litigation Reform Act, as amended) based upon current managementexpectations.

N i k t i ti d th f t (i l di i k l ti t t■Numerous risks, uncertainties and other factors (including, risks relating to : governmentregulation affecting our businesses; competition; our ability to manage rapid change intechnology in the industries in which we compete; litigation risks, labor issues;unanticipated costs from disposals or restructuring) may cause actual results to differ

t i ll f th ti i t d j t d i li d i b th f d l kimaterially from those anticipated, projected or implied in or by the forward lookingstatements.

■Many of the factors that will determine our future results are beyond our ability to control■Many of the factors that will determine our future results are beyond our ability to controlor predict. These forward-looking statements are subject to risks and uncertainties and,therefore, actual results may differ materially from our forward-looking statements. Youshould not place undue reliance on forward looking statements which reflect our views onlyas of the date of this presentation We undertake no obligation to revise or update anyas of the date of this presentation. We undertake no obligation to revise or update anyforward-looking statements, or to make any other forward looking statements, whether as aresult of new information, future events or otherwise

2

Al i i fAltran : an innovating company for its clients

1. 2010 Key events

Key figures

11 H2 2010 revenues stood at €727,5m (+6,6 % gross), showing an organic growth (excl Arthur D Little) of 7 9%

22 H2 2010 t ti lt i 51 6 € ti

showing an organic growth (excl. Arthur D. Little) of 7,9% compared to H2 2009

22 H2 2010 current operating result is 51,6m€ representing 7,1% of group’s revenues

33 H2 2010 France current operating margin is above 10%

44 Further reduction in indirect costs which narrowed to 21 5% of H2 2010 revenues21,5% of H2 2010 revenues

A solid balance sheet with « Investment Grade » ratios th k t d f i DSO (87 7 d )55

4

thanks to good performances in DSO (87,7 days)55

Markets : growth is accelerating

11 France :- Strong improvement of the current operating margin above 10% in H211 Strong improvement of the current operating margin above 10% in H2 2010- Growth acceleration during 2010 with a growth in excess of 10% in Q3 and Q4 2010

22 Northern region :- Improvement of profitability despite a « wait and see » environment- Gradual improvement in almost all countries with a growth acceleration in Q4 2010

33 Southern region:- Spain remains dynamic and is showing solid performances

Increased price pressure in Italy mainly- Increased price pressure in Italy mainly- Difficulties in Brazil are impacting region’s profitability

44 Arthur D. Little:- Back to profit in H2 2010 after losses in H1 2010- Growth is accelerating (+18,4% in Q4 2010 compared to Q4 2009)

5

Markets : pricing environment is improving

ADR (Average Daily Rate) improved 99

100101102 ADR change

in H2 2010

Prices in France are almost back to pre-crisis levels in H2 201095

96979899

crisis levels in H2 2010A larger rebound in price in

International operations impacted by business and country mix

929394

H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010

Excluding Arthur D.Little

France International Group

The improvement of prices during H2 2010 represents a solid baseThe improvement of prices during H2 2010 represents a solid base for pricing perspectives in 2011Demand improvement in many sectors should allow the group to pursue a gradual increase of prices

6

pursue a gradual increase of prices

Group’s positioning : gain of market shares in group’s main activitymain activity

Business line 2009 2010 Change

R&D lti 789 859 8 9%R&D consulting activity

th d i bR&D consulting 789 859 +8,9%

IT consulting * 398 373 -6,0%

Strategy consulting 128 119 -6,6%

growth was driven by a better demand in almost all sectors

S a egy co su g(of which Arthur D. Little)

8 9 6,6%

Other * 89 85 -5,6%

Total 1 404 1 436 +2,4%ota 0 36 , %

Concentration benefits to large players

* Impacted by perimeter effects

A changing

having a wide geographical footprint

Referencing process became an I d S d d f h l 3

Group’s leading position enables it to show higher growth

changing market

Industry Standard for the last 3 years and is combined with a reduction of selected suppliers by clients

Clients are looking increasingly to sign

than market and will allow the gain of additionnal market

h

7

Clients are looking increasingly to sign long term Strategic Partnership with suppliers (ex EADS; Continental…)

share

M&A

11 Further asset portfolio rationalisation with the 11disposals of:

- Imagitek (US) on 31 March

- Altran Control Solutions, with 4 subsidiaries in US, Canada, Japan and China

22 Return to external growth with the acquisitions of :

-XYPE (1 July 2010), a UK company specialised in PLM, with sales of around EUR9m

IGEAM Développement Durable Italian leader in the Sustainable- IGEAM Développement Durable, Italian leader in the SustainableDevelopment sector and specialised in new-technology environmentimpact studies with sales of around EUR5m

8

IGEAM project examples

Basic preliminary design of an eco-compatible

IGEAM designed an urban community which uses photovoltaic panelsd i t h l i IGEAM l th tibl

urban community in the town of Eboli

and energy-saving technologies. IGEAM was also the eco-compatiblearchitecture prize winner for a supermarket in Shanghai.

Risk analysis of Sonsub LTD’s marine fleet – SAIPEM Group

Sonsub Ltd (owned by Saipem) carries out the inspection, maintenance, repair work andconstruction of underwater conduits for the Tripoli-Gela pipeline project. IGEAM S.r.l. wascommissioned to carry out an analysis of the risks, such as personnel exposure, related tothese activities.

9

XYPE project examples

Xype present throughout the entire development cycle and product/project lifecycle

10

Brazil / Arthur D. Little

Altran is currently in negotiations to sell all of itsactivities in Brazil.

Given the improvement in Arthur D. Little'sperformances over the last few months the Group is stillperformances over the last few months, the Group is stillreviewing several possible scenarios and has engagedan exterior advisor to carry out a strategic revue of thisan exterior advisor to carry out a strategic revue of thisactivity.

11

Al Al i iAltran : Altran : an innovating company for its clients

2. Strategy and action plans

Group restructuring since 2006Industries

Industries

G

Stage 1 : 2006-2008

Stage 2 : 2008-2010

Stage 3 : 2010 2012

KRYPTON SHAPE

Solu

tions

Geographies

2006-2008Disparate Altran gradually merge

2008-2010Industries emerge followed by Solutions

2010-2012Rollout of new international organisation

2006 2007 2008 2009 2010 ….

183 independent operating companies competiting against each

other

54 operating companies represent 99% of sales 1 operating company per country

> 50 brands < 10 brands 3 brands :Altran ADL and CCL

Companies

Brand(s) Altran, ADL and CCL

< 15% of sales generated by Altran brand 80% of sales

generated by Altran brand90% of sales

generated by Altran brand

60% from projects

( )

Altran sales

90% of salesfrom Technical Assistance Services 40% from projects

60% from projects20% generated with client or via

« design to x »Business Model

13

Action4 - tangible results Focus on differentiationFocus on differentiation

■ Commercial structure organised by Industry and major accounts■ Creation of Industry-specific International monitoring committeesGrowth driver

■ Overhead cost adjustmentProfitability driver

j■ Sharp cash improvement■ Capital increase

Client differentiation

■Offers & Solutions structured within an international programme

■ Definition of Rflex-integrated skill mapping

■ Solution Centre developmentp

■ International mobility rulesEmployer

differentiation

■ International mobility rules

■ Uniform set of Consultant career-path guidelines deployed throughout

Group companies in Europe

14

Structural financial indicators restoredImprovement made despite the crisisImprovement made – despite the crisis

Reduction in indirect costs

2009/2008 : Savings of around € 68 7m in 2009 vs

DSO improvement

2006 : 98 days2007 : 90 days

Financial situation

Balance sheet improvementaround € 68.7m in 2009 vs 2008

Reduction in weight of indirect costs (23.1%)

2007 : 90 days2008 : 90.6 days2009 : 88.5 days2010 : 87.7 days

Financial leverage of 2.09 in

2010 vs 3.08 in 2006

Profitability driver

despite sharp decline in 2009 sales (- € 250m)

2010 : 22.1% 168 2

DSO in n° of days

98 Leverage

156,3160,9

156,1

168,2

23.3%

22.9% 22.7%21.5%

98

90

87.788.5

90.6

2.09

3.83

1.14

2.713.08

S1 2009 S2 2009 S1 2010 S2 2010

Indirect costs (€m)

Indirect costs as a % of sales

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

15

Crisis steers market conditions …Post crisis environmentPost-crisis environment

New client demands

An awareness of the challenge

Pricing pressure

Heavy pricing pressure resulting

Consulting Management crisis

Market collaps in 2009 : ADL -

related to innovation at Executive

Management level

Strong desire of clients to optimise

service supplier-relations and

from gradual structuring of

puchasing management and the

2009 crisis (impact amplified by

Group’s high ADR)

40% of Group sales

Beginning of sector consolidation

expected in 2011

pp

consider the prospect of more

strategic partnerships…

…but organisations and habits

slow to evolve: risk and cost

p g )

Emergence of new « low cost »

rivals (outsource and offshore

companies) on large deals, also in

Europeslow to evolve: risk and cost

burden on the supplier without a

total delegation of means, which

would enhance profitability (risk of

d bl i )

Europe

a double squeeze on margins)

16

… and creates new business opportunitiesSome recent success storiesSome recent success stories

■ Projet PSA en Chine■ DRIA : Projets de création et prospective d’IHM innovantes■ DPR : Proposition de concepts innovants d’accessoires – Mode co-création

■ Operates on the Project Ownership Assistance (POA) segment :• Energhia Consortium : POA on all ITER technical building projects• €23m over 16 years, overseeing work carried out by the Atkins-

Assystem Consortium

■ Partnership on PSA strategic business projects:• End to end management of PSA’s BP system vehicles in China • € 3m contract with delivery in China and project management carried

out in France

■ OT parnership (TI + CIS) efficient :• Repositioning on the IT sector after obtaining MAC-IT certification• €500m of market for 10 Prime (including Altran)

■ Partnership on Areva strategic business projects:■ Innovation management training modules for group experts ■Design to cost projects for nuclear process, generating savings of over 20%

■ Partnership on Renault strategic business projects:• Panel 3EA, Preferred Supplier Systems• Engineering systems deployment (30 engineers)

17

Altran’s targeted positioningInnovation EnablerInnovation Enabler

Footprint

Geographic foothold

•Europe : France, Northern and Southern Europe

Sectoral foothold

•AIT•ASD

Solution segment foothold

•Mechanical EngineeringSouthern Europe•Asia•The Americas

ASD•EILiS•TEM•FSG

g g•Critical and Embedded Systems•IT Systems•Innovation Management•Enterprise Management Performance

Positioning

Performance

g

18

Altran’s targeted positioning

Privilege margins over growth

Operating strategy

g g g

Further asset portfolio streamlining with disposal of non –

profitable and/ non-core businesses

Target ≥ 10% EBIT

19


3. Results

P&L

in €m 31.12.2009 H1 2010 H2 2010 31.12.2010

Revenues 1 403,7 709,2 727,5 1 436,7

Recurring Operating IncomeAs % of sales

31,02,2%

17,52,5%

51,67,1%

69,14,8%

Non recurring income / (losses) (64,4) (15,9) (5,5) (21,4)

Goodwill depreciation (38,6) (14,6) (15,6) (30,2)

Operating income (72 1) (12 9) 30 5 17 6Operating incomeAs % of sales

(72,1)(5,1%)

(12,9)(1,8%)

30,54,2%

17,61,2%

Net cost of debt (14,3) (12,6) (11,8) (24,4)

Other financial income / (losses) (5,2) 4,2 (8,8) (4,6)

Income taxes 16,3 (6,1) (8,2) (14,3)

Net result of integrated companies (75,3) (27,5) 1,7 (25,8)

Minority interests 0,6 (0,4) 0,2 (0,2)

Group’s net result (74,7) (27,9) 1,9 (26,0)

* The 2010 French Finance Act has replaced the liability of French tax-paying entities to pay business tax (taxe professionnelle ) by two new contributions:

- a property contribution (Cotisation Foncière des Entreprises - CFE) assessed on the rental value of real estate assets;

2121

- a value added contribution (Cotisation sur la Valeur Ajoutée des Entreprises - CVAE), assessed on the value added derived from the company accounts.

In accordance with the provisions set out in IAS 12, the value added contribution (CVAE) is now recognised as a tax on income, whereas before this charge was booked as part of operating income on ordinary activities under "taxes and duties". At 31 December 2009, the value added contribution would have amounted to €7,2m. At 31 December 2010, this totalled €8,7m.

Operating expensesIn €m 2009 H1 2010 H2 2010 2010

TOTAL OPERATING EXPENSESas % of turnover

1 377,498,1%

695,598,1%

684,794,1%

1 380,296,0%

Other purchases and external charges * (317,9) (168,4) (176,8) (345,2)

Subcontracting (105,2) (56,7) (64,3) (121,0)

Outside services (39,6) (23,6) (24,1) (47,7)

Rents and leases (58,0) (27,4) (27,8) (55,2)

Travel (62,9) (31,0) (32,8) (63,8)

Fees and Advertising (24,8) (14,4) (14,4) (28,8)

Supplies (11,4) (6,8) (7,1) (13,9)

Training (2,7) (4,5) (3,8) (8,3)

Other (13,2) (3,8) (2,5) (6,3)

Labour cost (1 039,7) (520,7) (498,1) (1 018,8)

Employee profit sharingStaff benefits

(0,6)(1 9)

(0,6)(0 4)

(0,8)(0 3)

(1,4)(0 7)

(including stock options)(1,9) (0,4) (0,3) (0,7)

Taxes (10,3) (2,0) (0,1) (2,1)

Depreciation & provisions (9,5) (4,4) (9,7) (14,1)

2222

Recurring operating profitAs % of turnover

31,02,2%

17,52,5%

51,67,1%

69,14,8%

Indirect costs are under control

Target 156 3160,9

168,2Target

Reduce indirect costsAchieve a 20% ratio once growth will be

156,3156,123,3%

22,9% 22,7%21 5%c e e a 0% at o o ce g o t be

back

H1 2009 H2 2009 H1 2010 H2 2010

Indirect costs in €m

21,5%

2010 results In €m 2008 2009 H1 2010 H2 2010 2010

Revenues 1 650 1 1 403 7 709 2 727 5 1 436 7

Indirect costs in % of revenues

Continued decline of indirect costs of approximately €7m compared to 2009

Revenues 1 650,1 1 403,7 709,2 727,5 1 436,7

Gross margin 31,5% 25,3% 25,2% 28,6% 26,9%

Indirect costs 392,9 324,3 160,9 156,3 317,1Decrease of indirect costs weight at 21,5% of revenues in H2 2010

In sales % 23,8% 23,1% 22,7% 21,5% 22,1%

EBIT margin * (%) 7,7% 2,2% 2,5% 7,1% 4,8%

* The 2010 French Finance Act has replaced the liability of French tax-paying entities to pay business tax (taxe professionnelle ) by two new contributions:

2323

professionnelle ) by two new contributions:- a property contribution (Cotisation Foncière des Entreprises - CFE) assessed on the rental value of real estate assets;- a value added contribution (Cotisation sur la Valeur Ajoutée des Entreprises - CVAE), assessed on the value added derived from the company accounts.

In accordance with the provisions set out in IAS 12, the value added contribution (CVAE) is now recognised as a tax on income, whereas before this charge was booked as part of operating income on ordinary activities under "taxes and duties". At 31 December 2009, the value added contribution would have amounted to €7,2m. At 31 December 2010, this totalled €8,7m.

Non recurring operating result

■ The non recurring operating profit amounted to €(23,1)m mainly impacted by restructuring costs essentially booked in H1 2010restructuring costs essentially booked in H1 2010.

In €m 2009 H1 2010 H2 2010 2010

Capital gain / loss on subsidiaries sold 1,9 (1,7) (3,4) (5,1)

Net proceed of subsidiaries sold 1,9 (1,7) (3,4) (5,1)

Capital gains on asset sales (0,2) (1,4) (0,9) (2,3)

Net Restructuring cost (66,6) (13,2) (1,4) (14,6)

Other 0,5 0,4 0,3 0,7

Non recurring operating income / losses (64,4) (15,9) (5,3) (21,3)

242424

Goodwill amortization

The result of the impairment tests leads to a goodwill amortization of €30,2m on 11 companiesrepresenting €97m of goodwill

On 7 companies there was a complete goodwill write off in 2010 off which 3 concerned theOn 7 companies there was a complete goodwill write-off in 2010, off which 3 concerned theAltran Control Solutions group (previously CSI) that was sold in H1 2010

In H2 2010, only Arthur D. Little has been subject to a goodwill write-off, y j g

As of December 31st, 2010 the net book value of goodwill is €380,8m

252525

Net interest charge

In €m 2009 H1 2010 H2 2010 2010

Income from cash & cash equivalent 4,2 2,1 2,8 4,9q

CB accrued interestOf which IFRS split accounting impact

(1,5)(0,5)

(6,8)(2,4)

(6,9)(2,4)

(13,7)(4,8)

Accrued interests on other financing operations (17,0) (7,9) (7,7) (15,6)

Gross financial cost of debt (18,5) (14,7) (14,6) (29,3)

Coût de l’endettement financier net (14,3) (12,6) (11,8) (24,4)

262626

Taxes

Tax integration is in place for most of the group’s major geographies

In €m 2009 H1 2010 H2 2010 2010

Result before taxes and goodwill depreciation

(52,9) (6,8) 25,6 18,8depreciation

Theoretical taxes income (33,75%) 18,2 2,3 (8,8) (6,5)

Secondary taxes (IRAP, CVAE…) (5,6) (9,6) (6,2) (15,8)

Differed taxes impact (9,5) (3,5) (4,2) (7,7)

Permanent differences 13,0 4,9 9,0 13,9

Miscellaneous 0,2 (0,2) 2,0 1,8, ( , ) , ,

Tax loss/ income 16,3 (6,1) 8,2 (14,3)

Fiscal deficit to be activated 421,6

Fiscal deficit activated 241,2

Fi l d fi i i d 180 4

272727

Fiscal deficit non activated 180,4

Potential tax saving 55,1


4. Balance sheet & cash flow

Simplified cash-flow statement (in €m)

2009 H1 2010 H2 2010 2010

Beginning Net financial debt (164,9) (172,9) (191,8) (172,9)Current operating income 31,0 17,5 51,6 69,1Restructuring costs (64,4) (15,9) (5,4) (21,3)Depreciations & amortization 20,2 (9,0) (8,6) (17,6)Others (2,7) 6,8 (1,7) 5,1Cash flow (15 9) (0 6) 35 8 35 2Cash flow (15,9) (0,6) 35,8 35,2Change in NWCR 47,3 2,2 3,8 6,0Tax paid (15,9) (8,3) (3,4) (11,7)Interest Paid & other financial charges (18,1) (6,3) (4,7) (11,0)Net cash flow generated by operations (2,6) (13,0) 31,6 18,6Earn-outs (2,4) (0,5) 0,1 (0,4)Capex & acquisitions of financial intangibles (12,3) (8,6) (13,5) (22,1)Others 6,4 4,3 (11,4) (6,8)Net cash flow related to investments (8,3) (4,8) (24,8) (29,2)Net cash flow before financing transactions (10,9) (17,8) 6,8 (11,0)

Capital increase & others 0 1 0 1 0 3 0 4Capital increase & othersOf which others

0,12,8

0,1(1,2)

0,33,9

0,42.7

Closing Net financial debt (172,9) (191,8) (180,4) (180,4)

2929

* The opening net debt is computed before accrued interest and employee’s share of profit

Net debt as of December 31st, 2010 (in €m)

31.12.2009 30.06.2010 31.12.2010

IFRS IFRS IFRS

Convertible bond 99,9 99,8 99,8

Mid-term bank loan 103,9 87,1 68,4

Short term bank loan 211,7 177,3 227,3

Covenants are calculated every June 30 and December 31

Of which factoring 159,7 132,9 186,1

Total financial debt 415,4 364,2 395,5

Cash 242,6 172,4 215,1

N t fi i l d bt 172 9 191 8 180 4

Covenants are based on IFRS standardUnder IFRS equity amounts to €446,6m as of DecemberNet financial debt 172,9 191,8 180,4

Employee profit sharing 7,6 5,3 5,0

Accrued interest on CBs 4,8 11,0 18,0

Net debt 185,3 208,1 203,4

to €446,6m as of December 31st, 2010

Net debt 185,3 208,1 203,4

Financial ratios 31.12.2009 30.06.2010 31.12.2010

Net financial debt / EBITDA x 3,83 x 3,52 x 2,09 Covenants to be respected

31.12.2010, , ,

Gearing x 0,38 x 0,45 x 0,41

respected

Net financial debt / EBITDA

< 4,0

Gearing < 1,0* EBITDA d b th b k f th l l ti f th i t i 12 th lli Ebitd b f th t f

3030

* EBITDA used by the banks for the calculation of their covenants is a 12-month rolling Ebitda before the cost of employee’ share of profit and stock options or free shares

DSODSO h i 2010

H2 2010 target Come back under 90 days

DSO change in 2010

Realized 2010

Reduction of DSO despite sales growth acceleration in Q4 2010

418,1 445,8

31,7 (4,0)88,5 days87,7 days

Clientsreceivables31.12.2009

Sales growthimpact

DSO impact Clientsreceivables31.12.2010

DSO change in H2 2010DSO change in H1 2010

31 193,6 days 87 7 days93,6 days

444,8 445,8

31,1(30,1)

y 87,7 days

418,1 444,82,3 24,4

88,5 daysy

3131


Sales growthimpact



Sales growthimpact



5. Geographical data

Geographical data – IFRS 8

Revenues(in €m)

Current operating result (in €m)

Current operating margin (in %)

2009 H1 10 H2 10 2010 2009 H1 10 H2 10 2010 2009 H1 10 H2 10 20102009 H1 10 H2 10 2010 2009 H1 10 H2 10 2010 2009 H1 10 H2 10 2010

France 642,2 336,8 348,4 685,2 17,9 14,5 28,6 43,1 2,8% 4,3% * 8,2% 6,3%

North 362,3 172,1 177,0 349,1 18,0 8,4 13,4 21,8 5,0% 4,9% 7,6% 6,2%

South 287,3 148,8 145,6 294,4 9,8 2,5 7,4 9,9 3,4% 1,7% 5,1% 3,4%

Rest of the world

38,5 17,5 18,0 35,5 (4,4) (1,0) - (1,0) - - - -world

Arthur D Little 106,6 53,2 60,1 113,3 (10,2) (6,7) 2,0 (4,7) - - - -

Eliminations (33,2) (19,2) 21,6 (40,8) - - - - - - - -

Total 1403,7 709,2 727,5 1436,7 31,0 17,5 51,6 69,1 2,2% 2,5% 7,1% 4,8%

3333

* Excluding holding costs France current operating margin should have been 10,1% in H2 2010 vs 6,8% in H1 2010

Current operating margin change in France (excluding holding costs)

Holding costs are estimated at around €14,5 m in 2010 and correspond to non allocated charges taken by the group parent company included in France’s consolidation

H2 2010 t ti i ld h b 10 1% l di th t h ldi

( g g )

H2 2010 current operating margin would have been 10,1% excluding these corporate holding costs (6,8% in H1 2010)

362,5359,5

348,410,1%

11,3%

350

360

370

10,00%

12,00%

329,4

336,8

,9,2%

6,8%6,1%330

340

350

%

8,00%

312,8

3,4%310

320

4,00%

6,00%

280

290

300

0,00%

2,00%

34

H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010

Revenues Current operating income as % of sales


6. Outlook et conclusion

2011 outlook

11 Demand should remain solid during 2011, with an almostgeneralized restart of spendings in R&D projects

22 Prices should improve given the demand dynamism and the22 competition to attract talents that is increasing

Staff turnover deteriorating and increased wage inflationpressure in many sectors will be the group’s key points of33 pressure in many sectors will be the group s key points ofattention for 2011

36

Conclusion

The Group expects strong growth trends in France to continue in g g2011. At the International level, recovery in demand over the past few months is expected to continue and boost performances in most regions.

After the acquisitions of Xype (UK) and Igeam (Italy) in 2010, Altran intends to pursue its targeted external growth strategy in 2011 and i h i t t i iti th iis hoping to carry out one or more acquisitions the same size as those acquired last year.

Th it f ti ht i di t t t d th d lThe pursuit of tight indirect-cost management and the gradual recovery in gross margin should continue to enhance operating margins.

As such, Altran expects to see further improvement in the operating margin on ordinary activities in 2011.

37

Q&AQ&A

38


7. Appendix

Balance sheet - assets (in €K)

31.12.2009 30.06.2010 30.12.2010

Net Net Gross Amort & Prov Net

Non-Current Assets 583 720 579 589 1 001 412 (435 226) 566 186Non-Current Assets 583 720 579 589 1 001 412 (435 226) 566 186

Goodwill of a business 395 832 387 844 651 039 (270 240) 380 799

Other intangible fixed assets 40 228 39 688 68 159 (25 596) 42 563

Tangible fixed assets 35 834 36 271 109 962 (73 552) 36 410

Land 383 383 383 - 383

Buildings 6 517 7 754 12 788 (4 922) 7 866

Other tangible assets 28 934 28 134 96 791 (68 630) 28 161

Financial fixed assets 30 244 29 366 26 829 (3 257) 23 572

Deferred tax assets 77 231 80 697 132 123 (55 054) 76 805

Other non-current assets 4 351 5 723 13 300 (7 527) 6 037

Current assets 736 893 698 394 740 930 (10 575) 730 355Current assets 736 893 698 394 740 930 (10 575) 730 355

Inventories & In progress 1 921 1 964 1 993 (59) 1 935

Clients & account receivables 418 116 444 805 452 399 (6 616) 445 783

Other receivables 73 185 78 082 68 535 (3 679) 64 856

Current Financial assets 1 099 1 094 2 949 (221) 2 727

Cash equivalents 198 630 126 352 148 337 - 148 337

Cash 43 942 46 097 66 716 - 66 716

4040

Total assets 1 320 613 1 277 983 1 742 342 (445 801) 1 296 541

Balance sheet - Liabilities (in €K)

31.12.2009 30.06.2010 31.12.2010

Shareholder’s equity 459 413 436 848 446 652

Non-current liabilities 277 647 262 911 242 885

Convertible bonds (>1 year) 100 422 102 818 105 223

Loans & borrowing from financial institutions 92 414 76 401 60 402

Other non-current financial liabilities 17 925 14 354 11 577

Non-current financial liabilities 210 761 193 573 177 202

Provisions for risks & charges 12 098 11 888 11 279

Long term staff benefits 38 180 38 294 40 098

Deferred taxes 16 290 15 804 12 193

Oth l t li biliti 318 3 352 2 113Other long term liabilities 318 3 352 2 113

Other non current liabilities 66 886 69 338 65 683

Current liabilities 583 553 578 224 607 004

Account payables 63 716 66 099 72 539

Taxes payables 78 840 92 716 74 912

Current staff benefit 133 620 164 026 151 565

Other current debt 39 618 33 520 40 217

Current creditors 315 794 356 361 339 232

Short term provision for risk & charges 48 803 33 479 24 980

Short term debt on fixed assets 1 851 1 424 1 531

Other current liabilities 217 105 186 960 241 261

T t l h h ld ’ it & li biliti 1 320 613 1 277 983 1 296 541

4141

Total shareholder’s equity & liabilities 1 320 613 1 277 983 1 296 541

31 12 2008 31 12 2009 1st semester 2010 2nd semester 2010 31 12 2010

Cash-flow statement (in €K)31.12.2008 31.12.2009 1st semester 2010 2nd semester 2010 31.12.2010

Beginning cash position 177 599 229 463 242 571 172 449 242 571

Operating income 78 410 (72 058) (12 909) 30 506 17 597

Goodwill depreciation 26 512 38 635 14 573 15 596 30 169

Net operating depreciations and amortizations 12 821 20 190 (8 951) (8 667) (17 618)

Stock options charges 506 1 892 365 364 729

Capital gains / losses 4 943 (1 341) 1 394 330 1 724

Other operating income / charges 6 120 (3 270) 4 944 (2 303) 2 641

Cash flow 129 311 (15 952) (584) 35 825 35 241

Change in NWCR (18 030) 47 246 2 173 43 681 6 031

Tax paid & change in tax liabilities & assets (29 808) (15 917) (8 281) (3 373) (11 654)

Interest paid & other financial charges (19 298) (17 987) (6 318) (4 714) (11 032)

Net cash flow generated by operations 62 175 (2 610) (13 010) 31 595 18 585

Earn-outs (2 292) (2 445) (454) 100 (354)

Capex (20 050) (12 273) (8 734) (13 370) (22 103)

Others (1 598) 7 943 4 362 (11 462) (7 099)

Net cash flow related to investments (23 941) (6 775) (4 826) (24 730) (29 556)Net cash flow related to investments (23 941) (6 775) (4 826) (24 730) (29 556)

Capital raised 126 763 87 67 309 377

Financing drawn / Capital raised 862 282 333 235 1 816 2 048

Financing facilities reimbursed (102 236) (218 876) (20 131) (16 663) (36 794)

Other financing transactions (12 088) (41 318) (33 419) 49 721 16 302

Net cash flow generated by financing transactions 13 301 22 226 (53 248) 35 182 (18 067)

Change in cash position 51 864 13 108 (70 122) 42 603 (27 518)

Closing cash position* 229 463 242 571 172 449 215 052 215 052

4242

*FX Impact 328 267 963 566 1 529

P&L (in €K)

31.12.2008 31.12.2009 1er semestre 2010 2Nd semestre 2010 31.12.2010

Revenues 1 650 082 1 403 734 709 216 727 472 1 436 688

Other operating income 5 026 4 673 3 858 8 799 12 657

Total operating income 1 655 108 1 408 407 713 074 736 272 1 449 346

Purchases & outside services (371 777) (317 890) (168 350) (176 849) (345 199)

Wages, social charges & benefits (1 129 282) (1 039 725) (520 717) (498 075) (1 018 792)

Of which employee profit sharingOf which stock options

(2 184)(506)

(634)(1 892)

(634)(365)

(812)(364)

(1 446)(729)

Taxes (11 992) (10 256) (2 041) (79) (2 120)

Allowance to amortization & provisions (15 037) (9 526) (4 437) (9 690) (14 127)Allowance to amortization & provisions ( ) ( ) ( ) ( ) ( )

Current operating income 127 020 31 010 17 529 51 579 69 108

Non recurring Income / Losses (22 099) (64 432) (15 865) (5 477) (21 342)

Goodwill depreciation (26 512) (38 636) (14 573) (15 596) (30 169)

Operating Income 78 409 (72 058) (12 909) 30 506 17 597

Net cost of debt (24 869) (14 312) (12 636) (11 795) (24 431)

Other financial income / losses 5 002 (5 209) 4 154 (8 731) (4 577)

Corporate income taxes (45 832) 16 259 (6 087) (8 246) (14 333)

Net result of integrated companies 12 710 (75 320) (27 478) 1 733 (25 745)

Minorities (1 272) 567 (436) 182 (254)

4343

Minorities (1 272) 567 (436) 182 (254)

Group’s net result 11 438 (74 753) (27 914) 1 915 (25 999)

Factoring & cash centralization

Factoring facilities available

306 4

Factoring Factoring will remain a flexible source of

financing for the group306,4 293,9 294,3

204,5159,8 132,8

186,1

291,5 financing for the group

International program covering Benelux, Germany, Spain, Portugal and Italy

31.12.2008 31.12.2009 30.06.2010 31.12.2010

F t i f iliti i d F t i f iliti d d Centralized cash(in €m)Factoring facilities signed Factoring facilities drawned

C h t li ti

Centralized cash(in €m)

Cash in subsidiaries(in €m)

194,4

20,7

Cash centralization

Efforts maintained

44

31st décembre 2010

Quarterly revenues change (in €m)

424,3

382 6

424,9408,5

423,2

394,6

371,4349,7

327,0

355,7 351,6 357,6344,9

382,6

,

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

45

Quarterly Arthur D. Little revenues change (in €m)

41,8

27,125,3 24,8

27,8 26,1 26,8 26,4

33,0

Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

46

Q4 2010 revenues per country excl. Arthur D. Little(in €m)

■ UK*+ 28,6% (Q4 10 vs Q4 09)

■ Benelux *- 21,9% (Q4 10 vs Q4 09)

■ USA *- 27,3% (Q4 10 vs Q4 09)

■ Asia*- 66,3% (Q4 10 vs Q4 09)

8 9 7 5 8 6 8 6 1 5 1 5 1 5 1 4 19 0 21,3 20,9 23,7 24,4

30,825,9 25,1 23,7 24,0

■ Scandinavia

8,9 7,5 8,6 8,6 6,5

T4 09 T1 10 T2 10 T3 10 T4 10

1,5 1,5 1,5 1,40,5

T4 09 T1 10 T2 10 T3 10 T4 10

19,0 ,

T4 09 T1 10 T2 10 T3 10 T4 10

T4 09 T1 10 T2 10 T3 10 T4 10

Sca d a a+ 33,0% (Q4 10 vs Q4 09)

■ Brazil ■ France+ 10,3% (Q4 10 vs Q4 09)

6,3 6,3 7,0 5,78,4

■ Germany & Austria*

+ 34,6% (Q4 10 vs Q4 09) 10,3% (Q4 10 vs Q4 09)

T4 09 T1 10 T2 10 T3 10 T4 10

1,84,3 4,2 3,7 2,4

161,4 161,8 163,0 158,2 177,9

- 0,2% (Q4 10 vs Q4 09)

* Countries impacted by perimeter effects

25,6 23,6 25,1 24,1 25,6

T4 09 T1 10 T2 10 T3 10 T4 10T4 09 T1 10 T2 10 T3 10 T4 10

■ Italy *+ 8,6% (Q4 10 vs Q4 09)

■ Spain+ 13,3% (Q4 10 vs Q4 09)

■ Switzerland+ 41,2% (Q4 10 vs Q4 09)

■ Portugal- 17,5% (Q4 10 vs Q4 09)

T4 09 T1 10 T2 10 T3 10 T4 10

4 1 4 0 3 95,4

37 9 38 4 39 5 41 15,1 4,9 4 4 4 1 4 225 7 26 0 27,6 25 5 29,1

47

4,1 4,0 3,93,8

T4 09 T1 10 T2 10 T3 10 T4 10

37,9 38,4 39,5 35,9 41,1

T4 09 T1 10 T2 10 T3 10 T4 10

,9 4,4 4,1 4,2

T4 09 T1 10 T2 10 T3 10 T4 10

25,7 26,0 27,6 25,5

T4 09 T1 10 T2 10 T3 10 T4 10

Northern Region revenues change with Arthur D. Little (in €m)

■ Benelux ■ Germany &

D. Little (in €m)

- 23,3% (Q4 10 vs Q4 09) Austria- 8,7% (Q4 10 vs Q4 09)34,1

27,9 27,2 25,2 26,132,4

27,9 28,5 29,4 29,6

■ UKQ4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

■ UK+ 25,0% (Q4 10 vs Q4 09)

21,4 23,2 22,8 25,4 26,7

■ Scandinavia■ Switzerland

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

■ Scandinavia+ 26,4% (Q4 10 vs Q4 09)

■ Switzerland+ 26,0% (Q4 10 vs Q4 09)

4,6 4,9 5,6 4,8 5,8 9,0 9,5 10,47,6

11,3

48Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Southern region and RoW revenues change with Arthur D Little (i € )

■ Portugal■ Brazil

with Arthur D. Little (in €m)

g-17,5% (Q4 10 vs Q4 09)+ 34,6% (Q4 10 vs Q4 09)

1,84,3 4,2 3,7

2,4

5,1 4,9 4,4 4,1 4,1

■ Italy ■ Asia

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

■ Italy+ 9,2% (Q4 10 vs Q4 09)

■ Asia+ 64,4% (Q4 10 vs Q4 09)

40,2 40,6 42,1 38,143,9

7,6 8,6 8,6 9,112,6

■ Spain■ USA

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

■ Spain+ 15,0% (Q4 10 vs Q4 09)

■ USA- 14,4% (Q4 10 vs Q4 09)

10,1 8,5 10,0 10,7 8,6 26,3 26,8 28,4 26,230,2

49Q4 09 Q1 10 Q2 09 Q3 10 Q4 10

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

Staff change

■ Total staff is up by 225 since September 30th 2010

18 405 18 522

■ Total staff is up by 225 since September 30th 2010

18 030

17 54817 227 17 149 17 03816 81316 769 16 801

+ 225

16 769

1526315694

1614616022+ 197

1491514718

1501815263

1498714646 14681

Sept 08 Dec 08 March 09 J ne 09 Sept 09 Dec 09 March 10 J ne 10 Sept 10 Dec 10

50

Sept 08 Dec 08 March 09 June 09 Sept 09 Dec 09 March 10 June 10 Sept 10 Dec 10

Total staff of which consultants

Invoicing rate

■ Invoicing rate is increasing since S t b 2009

■ Invoicing rate is computed out of

■ Invoicing rate is equal to the ratio between

September 2009all the resources internal and external used by

number of billed days and number of potential billable days excluding

the group notably legal vacations

84,6%

83 0% 83 1%83,9%

Quarterly invoicing rate change

82,3%

80,8%81,3%

83,0% 83,1%

77,9% 77,6%78,2%

51Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

Lack of industry standards on the definition make any comparison with other players difficult

Financial covenants

Net financial debt / Net financial debt / EquityEBITDA

q y

31.12.2009 < 4?5 < 1.0

30 06 2010 < 5 5 < 1 030.06.2010 < 5.5 < 1.0

31.12.2010 < 4.0 < 1.0

30.06.2011 < 3.75 < 1.0

31.12.2011 < 3.0 < 1.0

30.06.2012 < 2.5 < 1.0

31 12 2012 to 31 12 2013 < 2 0 < 1 031.12.2012 to 31.12.2013 < 2.0 < 1.0

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