Econocom Group SE — Earnings Release 2010

Mar 17, 2011

A MAJOR STRATEGIC ACQUISITION AND STRONG PERFORMANCES

The Econocom Group Board of Directors, who met on 16th March 2011 with Mr. Jean-Louis Bouchard acting as chairman, finalised the 2010 financial statements.

CONSOLIDATED RESULTS (in € millions)	2009	2010
Revenue	759.3	1,021.4	+35%
Recurring operating profit*	28.7	47.5	+66%
Recurring operating profit	28.7	47.0	+64%
Operating profit	28.7	40.3	+40%
Financial result	(0.6)	0.8
Profit before tax	28.1	41.1	+46%
Tax	(7.8)	(12.4)
Net consolidated profit	20.3	28.8	+42%
Net profit, Group share	20.3	28.8	+42%

* Before depreciation and amortisation of the customer portfolio for € 0.5 M in 2010

EARNINGS PER SHARE (In €)	2009	2010
Recurring operating profit	1.21	2.01	+66%
Net profit	0.86	1.23	+43%
Number of shares as of 31st december	24,800,000	26,172,897
Number of own shares as of 15th march 2011:		175,828

Acquisition of ECS: a decisive transaction

For Econocom, the highlight of 2010 was the acquisition of ECS Group, which enabled the Group to establish itself as the leading European provider in the business-to-business IT and telecoms infrastructure market.

The new group now boasts an offering covering all businesses' requirements (distribution, services and leasing). With 3,700 employees, and having extended and consolidated its presence in Europe to no less than 17 countries, Econocom is now better equipped than ever to assist its 20,000 clients, both locally and on an international scale.

Econocom predicts of a swift integration of ECS and confirms its objective of making €25 million in synergies a year, at least 15 million of which in 2011.

2010 results: strong performances

In 2010, Econocom Group posted consolidated revenue of €1,021 million, an increase of +35% compared with 2009. ECS and its subsidiaries have been consolidated in the Econocom Group financial statements since 1st October 2010.

(in € millions)	2009	2010
Products & Solutions	199	217	+9%
Managed & Telecom Services	139	168	+21%
IT Financial Services	421	636	+51%
Revenue	759	1,021	+35%

Revenue €1,021 M	+35%
Recurring operating profit €47.0 M	+64%
Net profit, Group share €28.8 M	+42%

This year, Econocom reported growth in all its areas of business. Distribution (Products & Solutions) rose +9%, driven primarily by a number of substantial contracts signed at the end of 2009 in the public sector in France. Services (Managed & Telecom Services) were bolstered by the sharp growth in dedicated telecom services (+34%, largely due to one of the largest roll-outs of mobile terminals conducted in France in 2010), and the integration of ECS, resulting in a +21% rise. Leasing (IT Financial Services), which also benefited from ECS' contribution and the success of Enterprise Solutions (Desktop on Demand by econocom, Mobileasy by econocom, etc.), was up by 51%.

Recurring operating profit rose sharply (+64%) to €47 million (€28.7 million in 2009). Recurring operating margin (4.6%) benefited from the positive effect of the seasonal nature of ECS' results, with most of the year's profits achieved during the fourth quarter.

Net profit, Group share also jumped more than +42% to €28.8 million (€20.3 million in 2009). Net profit per share stands at €1.23, rising 43%.

Financial position: swift debt reduction

Net financial debt stood at just €27 million on 31st December 2010, substantially lower than forecast at the time of the acquisition of ECS. This is the combined effect of the cashflow generated by business and a significant reduction in the new group's working capital requirements in the fourth quarter.

Consolidated shareholders' equity amounted to €139.7 million at the end of 2010 (€84.6 million for the previous year), as a result of the year's results and the increase in capital from the acquisition of ECS.

Dividend: a new year of growth

Based on the strong performance in 2010, its strong financial position and its confidence in the Group's prospects, the Econocom Board of Directors will invite shareholders to vote, at the Annual General Meeting on 17th May 2011, for the payment of a gross dividend of €0.35, up 17% on 2009. Since 2006, the dividend has risen steadily by an average of 15% a year.

Outlook: aiming for a new cycle of growth and enhanced margins

In light of the successful integration of ECS and the sales results at the beginning of this year, Econocom Group's management is well on course to achieve its target of €1.4 billion consolidated revenue and operating profitability of 4% in 2011.

Furthermore, Econocom has the necessary resources and strengths to embark on a new growth cycle: the continuing demand for IT and telecoms infrastructures, combined with the Group's proven ability to anticipate new underlying trends are major growth drivers. Econocom will be focusing in particular on developing innovative new solutions for intelligent objects. Moreover, its market leadership should enable the Group to play a unifying role in the concentration of the market sector.

These favourable trends should enable Econocom to aim in the medium term for €2 billion in revenue.

The Auditors, PricewaterhouseCoopers Reviseurs d'Entreprises, has confirmed that its audit work, which is substantially completed, has not revealed any material adjustment that should affect the accounting information included in this press release.

For more information, visit our website:

www.econocom.com

The Econocom Group share (BE0003563716 - ECONB) has been listed on the Euronext NYSE in Brussels since 1986 Contact: investor and shareholder relations: jean-philippe.roesch@econocom.com Sign up here to receive free financial news on Econocom via email: www.actusnews.com