Generix Group S.A. — Earnings Release 2015

Jun 1, 2015

2014/2015 Results: Strong growth in the Saas business and profitability maintained: COI at 8% and Ebitda at 9% of revenue

Paris, June 1, 2015 - Generix Group, Industrial, Logistical and Retail Ecosystems provider with leading Collaborative Software Solutions, today issued the results for its fiscal year 2014/2015 ended March 31, 2015.

COI AT 8% AND EBITDA 9% OF REVENUE

Over fiscal 2014/2015 and on the scope of the maintained activities, Generix Group recorded:

• EBITDA of 4.9 million euros (which is 9% of revenue), stable compared to the previous period;
• Current Operating Income of 4.2 million euros (which is 8% of revenue), up 7% compared to the previous period.

Thanks to an increase of 9% in its revenue, the additional investment in sales & marketing that the Group initiated over fiscal 2014/2015 has been recouped in the first year, the main explanation for the 4 million euro increase in operating expenses and other operating revenue over the past period.

This increase in revenue is primarily based on the success of the offers rolled out by the Group for the SaaS model which was confirmed over fiscal 2014/2015 with growth of 19% in the revenue generated by this business.

Operating Income amounts to 3.3 million euros, which is 6% of revenue after taking other charges and operational income into account. The latter, amounting to -€897 thousand, is singled out in the profit and loss account for its non-recurring nature. This corresponds primarily to expenses from selling the GCE ERP activity and from the NCIB.

Finally, the net income generated by the scope of the maintained activities amounts to 2 million euros over fiscal 2014/2015 (which is 4% of revenue).

Note that the net income for fiscal 2013/2014 was favorably impacted by the recognition of 1.5 million euros in deferred tax assets that were not recognized in the past.

Press Release

	Twelve months ended March 31,		Variation
IFRS consolidated accounts, in millions of Euros (unaudited)	2015	2014	m€	%
Revenues	53,7	49,4	4,3	9%
Which licenses	4,0	4,0	0,0 -	-1%
Which maintenance	17,1	16,6	0,5	3%
Which SaaS	14,9	12,5	2,4	19%
Which Consulting Services	17,7	16,3	1,3	8%
Operational expenses / other income from operations	- 49,5	- 45,5	4,0 -	9%
Profit (loss) from current operations from continuing operations	4,2	3,9	0,3	7%
Other operational income and expenses	- 0,9	- 0,4	- 0,5	156%
Profit (loss) from operations from continuing operations	3,3	3,5	0,3 -	-7%
Financial expenses	- 0,3	- 0,4	0,1	-30%
Loss before income taxes	3,0	3,1	- 0,1	-4%
Income taxes benefit	- 1,0	1,1	- 2,1	-194%
Net result from continuing operations	2,0	4,3	2,3 -	-54%
Net result after tax from discontinued operations (1)	- 1,1	- 0,5	- 0,6	N/A
Net result	0,8	3,7	2,9 -	-77%

(1) ERP GCE activity sold on May 2, 2014 (refer to the press release of May 5, 2014).

		Twelve months ended March 31,	Variation
EBITDA (2) in millions of Euros	2015	2014	m€	%
Revenues	53,7	49,4	4,3	9%
Other income from operations	1,5	1,2	0,3	22%
C ost of goods sold	- 0,9	- 0,9	- 0,1	10%
Other purchases and external expenses	- 16,2	- 14,2	- 1,9	14%
Taxes and similar payments	- 1,3	- 1,3	0,0	-1%
Personnel costs	- 29,9	- 28,6	- 1,3	4%
Other expenses on operations	- 0,5	- 0,3	- 0,3	103%
Reversals of used provisions during the period	- 0,4	- 0,1	- 0,3	N/A
C apialized production	- 1,0	- 0,5	- 0,6	131%
EBITDA from continuing operations	4,9	4,8	0,1	2%
EBITDA from discontinued operations	- 0,2	0,5	- 0,7	-154%

(2) EBITDA = current operating income + net provisions on current assets + net provisions for risks and charges + depreciation on fixed assets - capitalized production costs.

POSITIVE NET TREASURY

After the sale of the ERP GCE activity in May 2014 and the NCIB carried out in January 2015 for an amount of 8 million euros, the Group continues to show a positive net cash flow at the end of March 2015.

The free cash-flow generated over fiscal 2014/2015 stands at 10.1 million euros (+ 7.3 million euros compared to the previous period), due to:

• on the net increase in cash flow linked to investment activities (up €9.1 M), relating to the sale of the GCE activity on May 2, 2014,
• the decrease in self-financing capacity primarily linked to the settlement concerning a commercial dispute (fully provisioned in September 2012), for an amount of €1.6 M, following the decision handed down on appeal, as well as to the increase in other charges and operational income of -€0.6 M.

The cash flow linked to financing activities are impacted over fiscal 2014/2015 by the 8 million euro NCIB into account (refer to the financial press release of 22 January 2015).

Cash flow from maintained activities is up 3.2 million euros over the period.

		Twelve months ended March 31,	Variation
Net debt, in millions of Euros (unaudited)	2015	2014	m€	%
Cash and cash equivalents, end of period (3)	8,0	8,0	0,0	1%
Short-term and long-term portions of financial obligations (4)	7,3	6,5	0,8	12%
Net treasury	0,7	1,5	0,7 -	N/A

(3) Including 3.2 million euros allocated to the activities in the process of being sold as at March 31, 2014.

(4) Including 0.4 million euros allocated to the activities in the process of being sold as at March 31, 2014.

		Twelve months ended March 31,		Variation
Consolidated statements of cash flows, in millions of Euros (unaudited)	2015	2014	m€	%
Net income adjusted by non-cash items	2,1	4,4	2,3 -	-53%
Change in working capital	0,1	- 0,4	0,5	-122%
Net cash by operating activities	2,2	4,0	1,8 -	-46%
Net cash used in investing activities	7,9	- 1,1	9,1	-789%
Free cash flow	10,1	2,8	7,3	260%
Net cash by financing activities	- 6,9	- 2,2	4,6 -	209%
Net increase in cash and cash equivalent	3,2	0,6	2,6	455%
Cash and cash equivalent, end of period from continuing operations	8,0	4,8	3,2	67%
Net increase in cash from discontinued operations	- 3,2	0,0	3,2 -	N/A
Cash and cash equivalent, end of period from discontinued operations	-	3,2	3,2 -	-100%

ALREADY €12 M IN NEW SAAS CONTRACTS SIGNED SINCE THE BEGINNING OF FISCAL 2015/2016

Fiscal 2014/2015 allowed the Group to reach a growth rate in revenue of nearly 10% based on the nearly 20% increase in revenue generated by the SaaS business.

Signatures of new Saas contracts recorded over fiscal 2014/2015 for an amount of 10.9 million euros as well as the contracts already signed since the beginning of fiscal 2015/2016 for an amount exceeding 12 million euros allow the Group to start the new period with confidence as to the capacity to maintain a substantial level of growth.

With the recent acquisition of GMI Connectivity, Generix reinforces its expertise on the market for digitalization of data exchanged between businesses and extends the marketing of new services.

Supplemental and non-IFRS Financial Information

Supplemental non-IFRS information (above-mentioned as EBITDA or net treasury) presented in this press release are subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company's supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies.

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Next press release: July 27, 2015, after closing of the stock exchange Release of first quarter revenues of financial year 2015/2016

Contacts

Ludovic Luzza Chief Financial Officer Tel.: +33 (0)1 77 45 42 80 lluzza@generixgroup.com www.generixgroup.com

Stéphanie Stahr CM-CIC Emetteur Tel.: +33 (0)1 53 48 80 57 Stephanie.stahr@cmcics.com www.cmcics.com

About Generix Group

Vendor of application solutions for manufacturing, logistics and retail ecosystems, Generix Group helps its clients in managing, sharing and optimizing their data flows. Generix Collaborative Business portfolio relies on strong business expertise encompassing Supply Chain and Cross-Channel management, and uniquely leverages A2A/B2B Gateway and Portal solutions.

Auchan, Carrefour, Cdiscount, DHL, Feu Vert, Gefco, Kuehne + Nagel, Leroy Merlin, Louis Vuitton, Metro, Nestlé, Sodiaal, Unilever,... more than 5,000 international companies trust "Generix Collaborative Business" solutions to profitably run their business, establishing Generix Group as an European leader with close to €54M in revenue.

For more information, visit www.generixgroup.com