First-Half 2015 revenue

Q2-2015 REVENUE: €235.6m (+7.0%)

• Return to growth in France


• Slowdown in Germany in the second quarter


• Ongoing discussions with DAIMLER to transform the relationship with MBtech


• Continued strong growth in international activities


• The acquisition of Matis will take our revenue across the €1billion threshold

Q2-2015 REVENUE

• The earlier-than-expected return to growth of the France BU offset the slowdown in Germany, whose governance will be reformed. This growth and the continued fast pace of expansion of international activities resulted in an acceleration of growth in Q2.

• AKKA Technologies recorded revenue of €235.6 million in Q2-2015, up 7.0% compared with the revenue of €220.1 million recorded in Q2-2014 (+3.6% in Q1-2015). Organic growth was 1.2% during the quarter, compared with 1.3% in Q1.*

• Over the first half, the Group recorded revenue growth of 5.3%, with organic growth of 1.3%.

* Adjusted for currency effects and the acquisitions of Auronik and EPSCO

• AKKA - FIRST-HALF 2015 REVENUE

H1-2015 REVENUE BY REGION

• France recorded growth of 0.3% in Q2-2015 revenue to €111.3 million. The return to growth was earlier than expected, despite a persistently challenging environment and a negative locked-in effect. The BU recorded a decline of 1.8% in its revenue over the first half as a whole (-3.7% in Q1). The improved performance in Q2 came thanks to the first effects of the PACT 17 transformation plan, which aims to prepare the Group for major international contracts. It is expected to continue in the second half, allowing the Group's French operations to record an increase in revenue over the full year. However, the demanding competitive environment is likely to limit the improvement in the BU's margin in 2015.

• Germany recorded stable revenue in Q2: +2.1% (-2.1% organic), and a 4.2% increase to €159.3 million over the first half of 2015 (stable in organic terms). The slowdown in growth is attributable to higher employee turnover and hiring difficulties. It also suffered from an unexpected slowdown in orders from our main customer simultaneously with the opening of talks in May between AKKA Technologies and DAIMLER to transform the relationship with MBtech. This will speed up the diversification of our legacy German operations by increasing their potential for growth with our other customers and prospects in the region.

• International activities (excluding Germany) continued their strong growth. Their Q2 revenue was €45.4 million, an increase of 42.5% compared with Q2-2014 (+12.2% organic). In addition to China, which benefited from the start of the contract with BAIC, the vast majority of countries and regions continue to enjoy fast growth, including the Czech Republic, Spain and Italy. Belgium recorded a further acceleration of growth to 7.3% in H1 (+8.6% in Q2). International activities recorded revenue growth of 33.8% in H1 (+15.0% organic), with operating margins above 10% validating the Group's business model and its growth potential.

H1-2015 HIGHLIGHTS

• Transformation into a European Company: the company's registration as a European Company (Societas Europaea - SE) was completed on 16 April 2015. The change in status reflects the Group's international dimension and its growing presence in Europe, where it is now the leader in automotive and aerospace engineering. The transformation into a European Company will have no impact on AKKA Technologies' governance or the listing of its shares.

• Acquisitions: AKKA Technologies returned to the acquisition market in late 2014 to accelerate the deployment of its international diversification strategy.
  
  
  
  
  
  
  • After the acquisition of Auronik in late 2014, which marked the first step in its diversification in Germany, the Group acquired Italian company EPSCO during the first half of 2015. EPSCO is mainly active in processes in Italy. It recorded revenue of €18 million in 2014, with impressive margins. This acquisition will accelerate the diversification of the AKKA Technologies Group's activities in Italy, allowing it to achieve critical mass in that market. Our Italian operations will now have 420 employees generating €35 million in revenue.
    
    
    
    
  
  
  • AKKA Technologies has also entered into exclusive negotiations with the shareholders of MATIS with a view to a prospective majority takeover. A French technology consulting company, MATIS was founded in 1994 and has over 1,000 employees. It reported revenue of €82.5 million in 2014, 65% in France and 35% internationally. It holds significant positions in Belgium and Spain, and strategic positions in Brazil. Besides sharing a passion for technology with AKKA Technologies, MATIS has acknowledged expertise in the businesses of process support, industrialisation and quality, renewable energy and embedded computing. Leveraging its strong technological positioning, MATIS derived 30% of its 2014 revenue from the aerospace sector, 20% from the auto sector, 10% from energy and health, and 7% from transport. The objective is to sustain MATIS's activities and support its growth.
    The acquisition of MATIS will take our revenue across €1billion threshold.
  
  

OBJECTIVES - SHORT- AND MEDIUM-TERM OUTLOOK

• International operations continued to record stellar operating performances. The return to growth of the French operations has been faster than anticipated. It offset the slowdown in growth of the German activities.

• On this basis, the Group can confirm its objective of organic revenue growth in 2015 under its 2018 strategic plan.

• The transfomation of Mbtech's management will result in an improved operating performance in Germany. The Group confirms its 2018 objectives.
  
  
  
  
  
  
  • Revenue of €1.2 billion,
  
  
  • Recurring operating income* of €100 million,
  
  
  • Recurring operating margin of between 8% and 10%,
  
  
  • Control of financial equilibrium.
  
  
  
  * Recurring operating income before non-recurring items and expenses related to stock options and free shares.

Next releases: Interim 2015 results on 17 September 2015 after trading

Q3-2015 revenue on 9 November 2015

QUARTERLY REVENUE

ABOUT AKKA TECHNOLOGIES

“The best way to predict the future is to invent it. Let's share our passion for technology.”

An engineering and technology consultancy and European leader in the mobility segment, AKKA Technologies operates in 20 countries through 21 centres of excellence building on expertise and synergies forged across the entire Group. Driven by a determination to innovate and a passion for technology, it combines an entrepreneurial spirit with a consistent and visionary strategy. Its understanding of the challenges facing its customers and its positioning across the entire product life cycle enable it to assist major customers on high value-added turnkey projects. With a differentiating positioning symbolised above all by the AKKA Research in-house research centre and a broad international footprint around its unique Franco-German base, AKKA Technologies is poised to become the best in class in large transnational contracts.

With nearly 11,000 talented employees, AKKA Technologies delivered revenue of €885.6 million in 2014, 50% of which internationally. It aims to lift this to €1.2 billion by 2018.

AKKA Technologies is listed on Euronext Paris TM - Segment B - ISIN code: FR0004180537.

CAC^® Small, CAC^® Mid & Small, CAC^® All-Tradable, CAC^® All-Share indices

For more information, please visit www.akka.eu

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In case of discrepancy between the French and English versions of this press release, only the French version should be deemed valid.

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