HF Company

Earnings Release • Oct 17, 2011

Flat sales over the first 9 months of the year Very strong growth in PLC activities, up by a factor of 3.3

HF Company Group recorded a 0.5% sales rise in the first 9 months of 2011 financial year to EUR 107.5 million. There was a slight fall in business in the 3rd quarter, when sales dropped 1.6% to EUR 34.4 million, the strong rise in PLC activities compensating for an important base effect.

Sales (€m)	Q3 11	Q3 10	9 months 11	9 months 10
TV Activities	11.1	-20.7%	34.6	-25.8%
Home Automation	8.8	+8.6%	27.6	+11.7%
PLC technology	8.3	+232.0%	24.8	+234.5%
Broadband	6.2	-40.3%	20.5	-27.3%
Consolidated sales	34.4	-1.6%	107.5	+0.5%

PLC and Home Automation activities still doing well

• 1- The PLC segment reported three-digit growth over the quarter, spurred on by the development in operating company contracts. The new production line, which came onstream in September, should improve the competitiveness of this business.
• 2- Despite the sequential growth of over 15% in Q3 due to gains in market share in France, TV activity was badly hit by a basis "DTT" effect on international markets and a general slowdown in consumption.
• 3- Broadband activities slowed over the first 9 months of the year. Due to exchange rate differences (-9%), combined with a general wait-and-see attitude amongst manufacturers, it was not possible for Broadband activities to match the exceptional 56% rise in performance of Q3 2010.
• 4- Over the first 9 months, Home Automation activities outperformed their market, rising 11.7% compared with a fall of 6% for household electronic goods according to GFK. The very strong innovation policy pursued by the Group is the real driving force of growth in this business.

Outlook for 2011

In the expectation of faster growth at the end of the year, the HF Company Group has taken the necessary measures due to the flexibility of its model to adjust to the crisis context and is expecting a gradual improvement in its profitability in the second half.

		Contacts
HF Company			Press: Stéphanie Stahr
: + 33 2 47 34 38 38			: + 33 1 45 96 77 83
comfi@hfcompany.com			stahrst@cmcics.com
ISIN: FR0000038531– Reuters: HFCO.LN - Bloomberg : HFCO NM

About HF Company: HF Company is a major player in the market for TV Activities notably DTT, PLC technology and home automation ergonomics. Through its broadband activities, the Group is the world's leading supplier of splitters. HF Company, which is quoted on the Eurolist (section C), has been awarded the Entreprise Innovante (Innovative Business) label by OSEO ANVAR (number A0912002F) and is also eligible for inclusion in FCPI (fonds commun de placement dans l'innovation).