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Elis

Earnings Release May 6, 2015

1280_iss_2015-05-06_0919fb95-b4b7-48a2-bdc1-dc7f7bc40512.pdf

Earnings Release

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Q1 2015 revenues up 6.5%; full-year guidance confirmed

First quarter revenues up 6.5%

  • o France : +2.5 %
  • o Europe : +8.5 %
  • FY15 outlook confirmed for +6.5% revenue growth
  • Continued implementation of commercial initiatives and M&A strategy
  • o 2014 contracts signed with large accounts ramping up in line with expectations
  • o Continued dynamism in Southern Europe
  • o 5 acquisitions announced on 8 April and consolidated from 1st April onwards

Completion of refinancing

  • o Optimization of debt facilities with average cost of debt below 3%
  • o No major maturity until 2020
Q1 revenues 2015 (€m) 2014 (€m) Reported
growth
Organic
growth
France 228.2 222.5 +2.5 % +2.5 %
Europe 67.0 61.8 +8.5 % +3.0 %
o/w Northern Europe 38.1 3.0 +8.9 % -0.8 %
o/w Southern Europe 28.9 26.8 +7.9 % +7.9 %
Brazil 22.3 13.8 +61.6 % +2.0 %
Manufacturing entities 4.5 4.3 +5.5 % +1.7 %
Total 322.0 302.4 +6.5 % +2.6 %

Percentage change calculations are based on actual figures

Puteaux, May 6 2015 – Elis, the leading multi-services group in Europe and in Brazil, specializing in the rental and maintenance of professional clothing, textile articles, hygiene and well-being appliances, today announces its revenues for the 3 months ended 31 March 2015.

Commenting on the first quarter revenues, Xavier Martiré, CEO of Elis, said:

"Despite a sluggish macro environment in Europe and Brazil, Elis continued to deliver solid growth in the first quarter. This good performance demonstrates both the resilient nature of our business model and the strength of our commercial teams. As such, we confirm that we are on track to deliver +6.5% revenue growth in FY15.

Q1 was marked by the IPO of Elis. Together, with the successful notes offering in April, we have successfully strengthened the Group's financial flexibility.

Furthermore, we have also improved our network with bolt-on acquisitions in Germany, Switzerland, France and Spain.

Together, these achievements will allow us to accelerate the deployment of our 4 strategic pillars: 1) To consolidate our positions in all our geographies, 2) To continue the development of our Brazilian platform 3) To pursue the improvement of our operational excellence and 4) The launch of new products and services."

France

Q1 revenues 2015 (€m) 2014 (€m) Reported
growth
Organic
growth
Hospitality 62.2 59.1 +5.2 % +5.2 %
Industry 46.7 45.8 +2.0 % +2.0 %
Trade & Services 83.1 83.7 -0.7 % -0.7 %
Healthcare 39.4 38.0 +3.7 % +3.7 %
Other items* -3.2 -4.1
France 228.2 222.5 +2.5 % +2.5 %

* : includes rebates

Percentage change calculations are based on actual figures

First quarter revenue growth of 2.5% in France was entirely organic.

  • In the Hospitality segment, revenues increased 5.2% from the ramp up of contracts signed in 2014. Solid revenue growth was achieved despite the negative impact we felt from the terrorist attacks in Paris during January.
  • Revenues for the Healthcare segment grew by 3.7%, driven by market share gains for both short-stay and long-stay clients.
  • Revenues for the Industry segment rose by 2.0% helped by new contracts wins in a market which remains subdued.
  • The persistently difficult macro environment led to a slight decline in Trade & Services revenues (-0.7%).

Europe

Movements in foreign exchange and perimeter were the principal drivers of reported revenue growth in Northern Europe (+8.9%). The commercial performance in the region was good but offset by the loss of 3 significant contracts in Belgium and Switzerland in early 2014.

Revenues in Southern Europe (+7.9% organic) continued to rebound helped by an improving macro environment and impressive commercial momentum in all segments including Hospitality and Industry.

Brazil

Revenues in Brazil (+61.6%) benefited from an additional month of activity from Atmosfera compared to Q1 2014. Despite the macro environment in the region, commercial momentum was good underscoring our view that the market has strong potential. Organic growth of +2.0% included a drag from the loss of several contracts in early 2014.

Investor and Analyst conference call

Speakers: Louis Guyot, CFO

Date: Wednesday, May 6 6:30 pm Paris time – 5:30 pm London time – 12:30 pm New York time

Media invited on a listen-only basis.

Webcast link (live and replay):

http://event.onlineseminarsolutions.com/r.htm?e=983999&s=1&k=71886A0A5532762F6D94255A94743E00

Numbers to dial:

France: +33 1 70 77 09 43 United Kingdom: +44 203 043 2441 United States of America: +1 855 402 7764

Numbers for replay:

France: +33 1 72 00 15 00 United Kingdom: +44 203 367 9460 United States of America: +1 877 64 230 18 Code for replay: 293717#

Audio and webcast replays will both be available for 90 days following the event.

Next information

AGM: June 24, 2015 Half-year results: July 29, 2015 (after market)

About Elis

Elis is a leading multi-services group in Europe and Brazil, specialized in the rental and maintenance of professional clothing and textile articles, as well as hygiene appliance and well-being services. With more than 19,000 employees spread across 12 countries, Elis' consolidated turnover in 2014 was €1.331 billion with consolidated EBITDA of €429 million. Benefiting from more than a century of experience, Elis today services more than 240 000 businesses of all sizes in the hotel, catering, healthcare, industry, retail and services sectors, thanks to its network of 275 production and distribution centers and 13 clean rooms, which guarantees it an unrivalled proximity to its clients.

Definition

Organic growth in the Group's revenue is calculated excluding (i) the impacts of changes in the scope of consolidation of "major acquisitions" and "major disposals" in each of the periods under comparison, as well as (ii) the impact of exchange rate fluctuations.

Forward looking statements

This release may contain some forward-looking statements. These statements are not undertakings as to the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions on the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements.

These risks and uncertainties include without limitation the risk factors that are described in the Document de Base registered in France with the French Autorité des Marchés Financiers.

Investors and holders of shares of the Company may obtain copy of such annual report by contacting the Autorité des Marchés Financiers on its website www.amf-france.org or directly on the Company website www.corporate-elis.com

The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.

Contact

Investor Relations :

Nicolas Buron +33 1 41 25 46 77 [email protected]

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