Bigben Interactive

Earnings Release • Apr 20, 2015

Press release

20 April 2015, 18:00

IFRS – € Millions Sales	2014/2015	2013/2014	Change
st Quarter 1	35,4	32,0	+ 10,6 %
nd Quarter (1) 2	38,5	36,3	+ 6,2 %
rd Quarter 3	73,9	71,7	+ 3,0 %
th Quarter (2) 4	37,1	38,3	- 3,3 %
As at 31 March 2015 (12 months)	184,8	178,3	+ 3,7 %

ANNUAL SALES OF FY 2014/2015: € 184.8 MILLION, UP 3.7 %

(1) Sales released = €37.8M. Post-closing adjustments

(2) Unaudited data

HIGH COMPARABLES IN 4 TH QUARTER

In 4th quarter of fiscal year 2014/2015 (from January 1st until March 31, 2015), Bigben Interactive achieved € 37.1 M sales down by 3.3 % when compared with the same period of previous fiscal year. This fallback is related to high comparables in the 4th quarter of 2013/2014 fiscal year which had benefited from the launch of two successful video games.

However core business activities grew by 4.9% in the 4th quarter according to the following breakdown:

• Accessories recorded sales of € 28.3 M in the last quarter of current FY up by 5.9% when compared to 4th quarter of FY 2013/2014. This achievement was supported by sales of Mobile phone accessories which grew by 12.5% to 20.6 M thanks to the success of Bigben accessories for the iPhone 6 and Samsung Galaxy S6 smartphones. Sales of Gaming Accessories were simultaneously down by 8.3%, with the drop in demand for Turtle Beach headsets concealing a growth of Bigben's own video game accessories.
• Further to the first nine months of current FY, sales of Audio products maintained a good growth rate with + 45.0 % during 4th quarter. Sales amounted to € 6.0 M against € 4.2 M in 4th quarter of FY 2013/2014.
• Publishing was confronted with high comparables from the 4th quarter of FY 2013/2014 which had benefited from the release of the Handball Challenge video game title. Sales consequently were down by 62.5 % to € 1.1 M compared to € 2.8 M in the comparable

period of FY2013/2014. Digital sales of video games grew further (+ 86 %) and represented 64% of Publishing sales, a trend supported by the rise of the digital back catalogue.

Distribution showed high comparables, in the same way as Publishing. This activity recorded € 1.6 M compared to € 4.5 M in the 4th quarter of FY 2013/2014 which had benefited from the launch of MX GP, a best-selling video game.

BREAKDOWN OF ACTIVITIES BY BUSINESS SEGMENTS

Sales in € Millions	Q 4 2014/2015	Relative share	Q 4 2013/2014	Relative share	Change
Core Business	35,4	95,6 %	33,8	88,1 %	+ 4.9 %
Accessories (Gaming+Smartphones+IT)	28,3	76,5 %	26,8	69,8 %	+ 5.9 %
Audio	6,0	16,2 %	4,2	10,9 %	+ 45.0 %
Publishing	1,1	2,9 %	2,8	7,4 %	- 62.5 %
Distribution	1,6	4,4 %	4,5	11,9 %	- 64.3 %
Total	37,1	100 %	38,3	100 %	- 3.3 %

BREAKDOWN OF ACTIVITIES BY AREA, COMBINING DOMESTIC AND EXPORT SALES FROM THESE AREAS (LIKE FOR LIKE FIGURES)

Sales in € Millions	Q 4 2014/2015	Q 4 2013/2014	Change
France	27.6	27.7	- 0.6 %
Germany	3.6	4.0	- 8.7 %
Benelux	3.1	5.4	- 42.3 %
Other territories	2.8	1.2	+ 119.0 %
Total	37.1	38.3	- 3.3 %

Bigben Interactive records consolidated sales of € 184.8 M versus an announced target of €190M for the full fiscal year 2014/2015, due to a slower than expected growth of Thomson products in the Audio business segment.

CURRENT OPERATING RESULT FOR 2014/2015

In spite of optimized margins with a more favourable product mix and a strict cost management, the Group operating profit is expected to be behind target in view of the impact of the rise of the dollar.

This impact being estimated to exceed € 5.0 M on the gross margin, the Current Operating Result ROC should however amount to ca. € 2.0 M against € 5.2 M in FY 2013/2014, thus outlining the success of Group policy implemented for the improvement of margins over the past year.

OUTLOOK FOR 2015/2016

In FY 2015/2016, Group anticipates an increase of its sales reflecting:

• a growth of its Accessory business for Mobile phones supported by the commercial momentum of new high end smartphones,
• a new growth of Audio sales,
• and a robust growth of the Publishing business with the launch of new video game titles with strong sales potential and the rise of digital sales.

For its part, the Gaming Accessory business should be durably faced with a receding market.

With regard to profitability, Bigben Interactive is confident on its capability to increase its operating result thus reflecting the development of its activities and its efforts towards optimized margins.

The complete results for FY 2014/2015 and prospects for FY 2015/2016 will be released to the financial community during the presentation of our annual results in Paris on May 27th.

Upcoming publication:

Annual results 2014 / 2015: Tuesday 26 May 2015

Press release after close of the stock market

About Bigben Interactive

A leading player specialized in the design and distribution of accessories for video games and cell phones, as well as audio products and video game publishing, Bigben Interactive has a presence in France, Benelux, Germany, Spain, Italy and Hong Kong. Buoyed by the rapid expansion of the Smartphone market and changes in the video game market, the Group, which is recognized for its capacities in terms of innovation and creation, seeks to become one of Europe's leaders in multimedia accessories.

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The Bigben Interactive group has 346 employees including 6 overseas subsidiaries. Sales published for last fiscal year (to the end of March 2014) amounted to €178 M.

Contacts

Bigben Interactive : Infofin@bigben.fr ; +33 (0)3 20.90.72.00 Website: http//www.bigben.fr

CapValue (Edouard Miffre): emiffre@capvalue.fr ; +33 (0)1 80 81 50 00

Company listed on Euronext Paris, compartment C

Index: CAC SMALL; Eligible SRD long

ISIN: FR0000074072;

Reuters: BIG.PA; Bloomberg: BIG FP