UPDATE 1-National Express H1 boosted by margin improvement

July 30, 2010 By Leave a Comment

LONDON, July 29 (Reuters) – British transport group National Express (NEX.L) reported a 36 percent increase in first-half pretax profit on Thursday as it benefited from improved operating margins and new contracts in North America.

The company, which runs coach services and rail franchises in the east of England, made a pretax profit of 75.7 million pounds ($118.2 million) in the six months to June 30. Its operating margin rose by 3.8 percentage points to 9 percent.

“Despite challenging economic conditions, greater operational focus is having a positive impact and we will continue to progressively drive improvement in performance and cut cost,” said Chief Executive Dean Finch.

National Express, which also operates yellow school buses in North America and a fleet of coaches and buses in Spain, said it expected trading to remain resilient in the next six months.

“We have secured growth opportunities, particularly in North America and Spain, in which we will selectively invest in the second half of the year,” said Finch.

The company, which raised 360 million pounds through a rights issue last November, said it expected to recommence dividend payments at the year-end, depending on its trading performance.

Shares in National Express closed on Wednesday at 242.9 pence, valuing the business at 1.25 billion pounds.

(Reporting by Matt Scuffham; Editing by Victoria Bryan)

($1=.6402 Pound)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-Publicis raises 2010 outlook amid ad recovery

July 30, 2010 By Leave a Comment

PARIS, July 29 (Reuters) – Publicis (PUBP.PA), the world’s third-largest advertising group by revenue, posted better than expected first-half results and raised its outlook as the global advertising industry recovers.

Publicis’ outperformance in the first half was fueled largely by a return to growth in nearly all regions, including the U.S., Europe, Asia, and Latin America, as well as by its digital business, the company said.

“The growth came from both new business and existing clients raising their ad spending,” Publicis CEO Maurice Levy told journalists. “We really have the feeling of being at the end of economic crisis, or even having put it completely behind us.”

Publicis, which competes with WPP (WPP.L) and Omnicom Group Inc. (OMC.N), posted first-half revenues of 2.54 billion euros and operating profit of 369 million euros, and had an operating margin of 14.5 percent.

The results exceeded analysts’ expectations of revenue of 2.44 billion euros, operating profit of 326 million euros, and a 13.4 percent operating margin.

Publicis’ strong performance comes after some of the world’s big advertising groups have sounded optimistic notes about the economic recovery lately as blue-chip companies boost their ad spending.

Omnicom posted better-then-expected results last week with CEO John Wren saying growth had returned to the U.S., Middle East, Asia, and Latin America, although Europe remained sluggish. [ID:nN16117713] [ID:nLDE65O1BB]

Analysts at ZenithOptimedia recently upped their forecast for worldwide advertising market growth from 2.2 to 3.5 percent this year.

“Of our 30 biggest clients, the vast majority of them have increased their ad budgets and are doing more business with us than before,” said Levy.

The group also signed new business contracts worth 2.1 billion euros in the first half.

Levy said the situation led Publicis to raise its full-year guidance for organic growth from 3 percent to at least 3.5 percent.

He also said Publicis hoped to exceed the 15 percent operating margin it achieved last year, a change from its earlier target of meeting last year’s level. [ID:nLDE65O1UT]

Levy added that concerns remained over Europe’s sovereign debt crisis and the prospects for the U.S. economy, but that he felt that Publicis would reach its raised targets nevertheless.

“There are indications that the market could slow, and I take them into account,” he said. “But even in a slowing market Publicis will do better than what we have announced till now.”

(Additional reporting by Cyril Altmeyer, editing by Geert De Clercq)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Publicis Groupe: First Half 2010 Results

July 30, 2010 By Leave a Comment

PARIS, July 29, 2010

PARIS, July 29, 2010 /PRNewswire-FirstCall/ –

Second quarter 2010
(EUR million)

– Revenue 1,376 (+21.3%)
– Organic growth +7.1%

First half 2010
(EUR million)

– Revenue 2,538 (+14.9%)
– Organic growth +5.3%
– Operating margin 369 (+28.6%)
– Operating margin rate 14.5%
– Net income (Group share) 213 (+27.5%)
– Free Cash Flow (1) 277 (+42%)
– Headline diluted EPS (2) 1.00 euro (+12%)
– Debt/equity ratio 0.20

(1) Before changes in WCR

(2) After elimination of impairment, amortization of intangibles arising on acquisitions and the tax credit arising on the deferred tax liability on the Oceane 2014 convertible bond.

Maurice Levy, Chairman and Chief Executive Officer of Publicis Groupe declares:

“With organic growth of 7.1% for the second quarter of 2010 and 5.3% for the half-year, an operating margin of 14.5% and net income up by 27.5%, Publicis Groupe has once again given proof of its energy and ability to create value, even in the aftermath of the worst global economic crisis in many years.

This growth is the result of a strategy that has been effectively executed over a number of years. We were quick to take the digital route, gaining a decisive lead over our competitors and providing clients with the best and most innovative solutions for the new landscape being shaped by the explosion of digital technology.

We also opted for expansion in emerging markets. The economic crisis may have slowed the pace of their growth, but ZenithOptimedia’s latest estimates for 2011 and 2012 bode well for strong growth.

The challenges our clients face demand from us greater inventiveness, creativity and innovation, and relentless operational efforts to ensure that they win whatever the circumstances. I would like to thank them for their confidence, and to pay tribute to the hard work of all our teams who have performed wonders within the constraints of strict cost controls, enabling Publicis Groupe to emerge stronger than ever from the crisis.

Tight cost containment since end 2008 and strong growth in revenue have boosted operating margin to an impressive 14.5%, despite the fact that Razorfish is still in the integration phase with a margin that, while improving, is still well below average for the Groupe.

Without lapsing into the euphoria that these half-year results for our Groupe might warrant, I remain firmly convinced that Publicis Groupe will succeed in outperforming the market in terms of both growth and margin.”

At its meeting on July 28, 2010, chaired by Mrs. Elisabeth Badinter, the
Supervisory Board of Publicis Groupe examined the first half results for 2010
presented by Mr. Maurice Levy, Chairman and Chief Executive Officer of
Publicis Groupe.
Key figures

EUR million, except for 1st half 2010 1st half 2009 2010/2009
percentages and
per-share data (EUR)

Income statement data
Revenue 2,538 2,209 14.9%
Operating margin before
depreciation and amortization 422 333 26.7%
As % of revenue 16.6% 15.1%
Operating margin 369 287 28.6%
As % of revenue 14.5% 13.0%
Operating income 353 257 37.4%
Net income attributable to Publicis
Groupe 213 167 27.5%

Earnings per share (1) 1.04 0.83 25.3%

Diluted earnings per share (2) 0.95 0.82 15.8%

Balance sheet data June 30, 2010 June 30, 2009
Total assets 14,458 11,408
Shareholders’ equity 3,090 2,418

(1) The average number of shares used to calculate earnings per share was 204.5 million for 1st Half 2010 and 200.8 million for 1st Half 2009.

(2) The average number of shares used to calculate diluted earnings per share was 237.1 million for 1st Half 2010 and 206.3 million for 1st Half 2009. This includes stock options, free shares, equity warrants and convertible bonds with a dilutive effect on EPS. For the first six months of 2010, the instruments that diluted EPS were the Oceane convertible bonds, equity warrants, free shares and certain tranches of stock options with a strike price below the average price over the period.

Analysis of key figures

I. First half 2010 activity

The global economy rallied over the first half of 2010. After forecasting a 0.9% increase in 2010 global advertising expenditure in its December 2009 forecast, ZenithOptimedia upgraded its forecast in April this year to 2.2% growth and upped its latest estimate yet again, on July 19, to 3.5%. This steady improvement in growth forecasts is most encouraging.

As the advertising market recovered, Publicis Groupe posted an increase of 14.9% in reported revenue for the first half and organic growth of +5.3%.

Second quarter revenue was up by 21.3% and organic growth rose to 7.1%.

Revenue in first half 2010

Consolidated revenue for the first half of 2010 was EUR 2,538 million compared to EUR 2,209 million for the first half of 2009, an increase of 14.9% (exchange rate impact was positive at EUR 55 million).

Organic growth was 5.3%.

First half growth reflects the strong recovery in advertising expenditure after the record slump triggered by the 2009 economic crisis. The larger networks, in particular Leo Burnett and Publicis Worldwide along with VivaKi, made the most of the upturn, and digital activities maintained their strong growth trend.

The breakdown of consolidated revenue for the first half of 2010 is as follows: 33% from advertising, 20% from media and 47% from specialized agencies and marketing services (including digital activities).

Breakdown of first half 2010 revenue by region

(EUR million) Revenue Organic Growth
1st half 2010 1st half 2009

Europe 805 738 +3.1%
North America 1,258 1,061 +6.6%
Asia-Pacific 286 238 +6.0%
Latin America 126 109 +10.8%
Africa and Middle East 63 63 -3.3%

Total 2,538 2,209 +5.3%

Almost all the regions, Europe included, saw a return to growth, with the exception of Africa and the Middle East, which is still suffering from Dubai’s financial crisis.

North America continues to enjoy good growth. Organic growth for the USA was 7.2%, fuelled by strong growth from all the agencies and significant contributions from the healthcare and digital activities, the latter accounting for 42.5% of the region’s revenue.

The Asia Pacific region is growing again, thanks largely to India and Korea.

Every country in Latin America except Chile reported growth.

Expressed in US dollars, first half revenue was USD 3,362 million, an increase of 14.3%.

Revenue in 2nd quarter 2010

Consolidated second quarter 2010 revenue was EUR 1,376 million, an increase of 21.3% on the figure of EUR 1,134 million for the corresponding period in 2009 (the exchange rate impact was positive at EUR 73 million).

Organic growth was +7.1% in the second quarter, a significant improvement on first quarter organic growth of +3.1%.

The second quarter undoubtedly benefited from a low basis of comparison, but the marked upswing in advertising business seen in the first quarter was also maintained.

Growth was also fuelled by new business wins in 2009 and by an increase in advertising spending by major clients.

– Breakdown of 2nd quarter 2010 revenue by region

(EUR million) Revenue Organic Growth
2nd quarter 2nd quarter
2010 2009

Europe 437 381 +7.3%
North America 679 535 +8.1%
Asia-Pacific 154 123 +5.3%
Latin America 71 58 +11.5%
Africa and Middle East 35 37 -10.4%

Total 1,376 1,134 +7.1%

Europe performed well in the second quarter. Only Africa and the Middle East posted negative figures.

Operating margin and operating income

Operating margin before depreciation and amortization was EUR 422 million in first half 2010, up 26.7% from EUR 333 million for the first half of 2009.

Operating margin was EUR 369 million compared with EUR 287 million for the same period in 2009, an increase of 28.6%.

Operating margin rate for the first half of the year was 14.5%, up from 13% for the same period in 2009. This reflects the significant upturn in activity as compared with first half 2009, and continued tight control over costs. The effects of measures taken in 2009, particularly with regard to containing personnel costs, are beginning to be felt.

Operating income for first half 2010 was EUR 353 million compared to EUR 257 million for the corresponding period in 2009, an increase of 37.4%.

Net income

Net income attributable to the Group was EUR 213 million, an increase of 27.5% on the net income of EUR 167 million reported for the first half of 2009.

Net income includes a net financial expense of EUR 42 million and a tax charge of EUR 89 million for the half-year.

Free Cash Flow

The Groupe’s free cash flow, excluding changes in WCR, was up sharply (+42% on the corresponding period of 2009) at EUR 277 million. The increase is directly linked to the increase in operating margin before depreciation and amortization.

Net financial debt at June 30, 2010

Net financial debt was EUR 618 million at June 30, 2010 compared to 899 EUR million at June 30, 2009. This figure includes the impact of the partial buyback of Publicis Groupe shares held by SEP Badinter-Dentsu at a cost of EUR 217.5 EUR million. Net financial debt at December 30, 2009 was EUR 313 million, the raise observed at June 30,2010 reflecting the usual seasonal effect.

The Groupe’s average net debt for the first half of 2010 was EUR 673 million, down sharply on the figures of EUR 1, 002 million for first half 2009 and EUR 929 million for the full year 2009.

The Groupe’s available liquidity position at June 30, 2010 was EUR 3.6 billion.

Shareholders’ equity at June 30, 2010

Consolidated shareholders’ including minority interests was EUR 3,111 million at June 30, 2010, compared with EUR 2,838 million at December 31, 2009. This includes the impact of allocation of 2009 income (dividends of EUR 107 million distributed).

The debt/equity ratio thus rose from 0.14 at December 31, 2009 to 0.20 at June 30, 2010.

II. NETWORKS

The upturn in advertising markets over the course of the first half of the year is benefiting all the Groupe’s networks. The growing contribution from digital activities, up to 28.1% of first half revenue compared with 20.7% (at 2010 exchange rate) for the first half of 2009, once again confirms the Groupe’s strategic decision to help its clients keep pace with a changing consumer landscape and the new digital audience. Digital activities are now making their way into every one of the Groupe’s networks, bringing the benefits of expertise and new ideas in virtually every area of digital operations, be it search, display, or the social and mobile networks made possible by the creation of the VivaKi Nerve Center (and at the same time avoiding duplication of investments).

III. COST CONTROL

The Groupe continues to exercise tight control over its costs. Cost optimization programs are the focus of unrelenting attention and are ongoing. The deployment of shared service centers, initiated some years ago, continues, as does the process of regionalization. The “Americas” platform, designed to serve the entire continent, is scheduled to go fully operational at the end of this year. The rollout (first local and subsequently global) of ERP, made possible by the integration of most agencies into shared service centers and the adoption of shared processes, continues. The Group expects to achieve a significant reduction in its operating costs from this investment, through global harmonization of processes and systems as from 2012.

Thanks to a solid balance sheet and improved cost control, the Groupe is well placed to meet market needs and sharpen its competitive edge.

IV. New BUSINESS: USD 2.1 BILLION IN NET wins

Publicis Groupe took in USD 2.1 billion in net new business in the first half of 2010, clear testimony to the attractiveness of its products and services (see Appendix for list).

V. ACQUISITIONS

Publicis Groupe has embarked on a process of securing long-term growth by ramping up its engagement in digital activities and emerging economies, both of which are growth drivers for the communications sector today and in the future.

A significant number of targets have been identified, with special interest focusing on the opportunities offered by China.

On March 30, Publicis Groupe announced it had acquired a minority stake in Taterka Comunicacoes (Taterka), an advertising agency based in Sao Paulo, Brazil.

On April 6, 2010, the Groupe acquired Canadian agency In-Sync. Founded in 1989, the Toronto-based agency operates in the health and wellness space, specializing in market research consultancy and offering innovative marketing solutions to its biopharma clients.

At the end of April, Publicis Groupe bought out the minority interests in W&K and holds now 100% of the capital of this Chinese agency, now rebranded Leo Burnett Beijing Communications Co., Ltd.

On May 19, 2010, Publicis Groupe acquired Resolute Communications Ltd. Founded in 2002, Resolute Communications provides healthcare communications programs spanning strategic consulting, medical education, and media and public relations. Resolute is headquartered in London with an office in New York. Resolute will be merged with Publicis Life Brands in London to form a new entity renamed Publicis Life Brands Resolute, that will further entrench Publicis Healthcare Communications Group (PHCG) as a leader in the United Kingdom.

VI. FINANCE

January 2010 saw the early redemption of some of the outstanding 2018 Oceane convertible bonds. According to the 2018 Oceane prospectus, any holder was entitled to request early redemption of all or part of its Oceane bonds at the early redemption price of EUR 45.19 per bond. At the early redemption date, i.e. January 18, 2010, a total of 617,985 Oceane bonds were repaid early for a total amount of EUR 28 million.

The number of Oceane bonds subsequently outstanding is 2,624,538, representing 14.9% of the number initially issued (17,624,521).

Furthermore, in view of the authorization granted by the Combined Annual General Meeting of the shareholders on June 9, 2009, Publicis Groupe SA entered into an agreement on January 8, 2010, with an authorized intermediary, with a view to purchasing 2.7 million Publicis Groupe shares. This authorization was granted for a period of eighteen months from June 9, 2009, i.e. until December 8, 2010. To date, 2,482,440 shares have been purchased under this program.

On May 10, 2010 Publicis Groupe purchased from Dentsu Inc. a block of 7,500,000 of its own shares, held by SEP Dentsu-Badinter, to be cancelled. The total price paid for the block was EUR 217.5 million, equivalent to EUR 29 per share. The shares were immediately cancelled.

VII. RECENT EVENTS

Acquisitions

On July 12, 2010, Publicis Groupe announced its acquisition of G4, a Beijing-based advertising agency. Launched in 2009, G4 offers integrated communications solutions, including advertising, design and strategic consulting, to Nestle in China. G4 has rebranded as Publicis G4 and will join forces with the Publicis Beijing Nestle team. Concentrating all the skills and resources dedicated to Nestle within Publicis G4 will provide an enhanced service to this key customer throughout Greater China and the Asia region.

New Business

New business maintained its dynamic pace at the beginning of second half 2010 after total gains of USD 1 billion for the second quarter.

VIII. Outlook

For the second time in succession, ZenithOptimedia has upgraded its forecasts of growth in global advertising expenditure for 2010, most recently to 3.5% growth. These significantly higher forecasts confirm the upturn in the market, after a year of record decline in global advertising expenditure in 2009.

Publicis Groupe’s growth rates for the first two quarters of 2010 are a mark of excellent performance and testimony to its judicious strategic choices, with digital activities continuing to expand across all the Groupe’s networks and creating the right conditions for innovation and value creation. Emerging economies are returning to growth rates more commensurate with their level of development and opening up new prospects for the Groupe.

These two cornerstones offer assurances of growth both now and in the future.

Investments in talent and in digital activities are still very much ongoing, made possible by strict cost control and a sound financial situation.

With many emerging economies, China in particular, returning to high growth, a recovering US economy (although flat since May), and certain European countries (including France and the UK) holding up well, Publicis Groupe confirms its target of outperforming the market on growth for full year 2010.

“This document contains forward-looking statements. The use of the words “aim(s),” “expect(s),” “feel(s),” “will,” “may,” “believe(s),” “anticipate(s)” and similar expressions in this press release are intended to identify those statements as forward looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than in connection with applicable securities laws, Publicis Groupe undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. Publicis Groupe urges you to review and consider the various disclosures it made concerning the factors that may affect its business carefully, including the disclosures made to the French financial authority (AMF)”

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world’s third largest communications group. In addition, it is ranked as the world’s second largest media counsel and buying group, and is the first global network in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 46,000 professionals. Publicis Groupe offers local and international clients a complete range of advertising services through three global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi, two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty, as well as New York-based Kaplan Thaler Group. Media consultancy and buying is offered through the two first ranked worldwide networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and digital marketing led by the two first ranked Digitas and Razorfish networks. Publicis Groupe launched VivaKi to leverage the combined scale of the autonomous operations of Digitas, Denuo, Razorfish, Starcom MediaVest Group and ZenithOptimedia to develop new services, tools, and next generation digital platforms. Publicis Groupe’s specialized agencies and marketing services offer healthcare communications with Publicis Healthcare Communications Group (PHCG, the first network in healthcare communications), sustainability communications and multicultural communications. With MS&LGroup, one of the world’s top three PR and Events networks, expertise ranges from corporate and financial communications to public relations and public affairs, branding, social media marketing and events, sports marketing and events.

Web site: http://www.publicisgroupe.com
Appendices
New Business – 1st Half 2010
USD 2.1 billion (net)
Key wins
Digitas

Electronic Arts (Brazil), Topper (Brazil), CA (USA), Goodyear (USA), Aflac (USA), Sears (USA), Whitewave (USA), Olay (Hong Kong/ Taiwan), Airtel (India), Nestle (India), Renault ZE (France)

Fallon

Cadbury Flake (UK), French Connection (global), Nokia (global), The Cosmopolitan of Las Vegas. (USA), Cadillac (USA)

Leo Burnett

Chrysler (UK, Germany, Turkey), Samsung (Malaysia, Czech Republic, Thailand, Kazakhstan), COI/BIS (UK), Research in Motion- Blackberry (UK), DUFRY- duty free (Mexico), Sigma Alimentos (Mexico), Koleston (Colombia), Nestle (Guatemala), Sanofi-Aventis (Guatemala), Canon (Thailand), Amway (China), Siemens (China), Merrill Lynch (Korea), British Council (Sri Lanka), BMW (Malaysia), Pilipinas Shell (Philippines), Arla Food (Russia), Nycomed (Latvia), The ITI Group (Poland), Altıparmak (Turkey), El-Bi Electrics (Turkey), Turkcell (Turkey), Ulker (Turkey), Delipapier Sofidel (France), Campero (Guatemala, Salvador), V-Inspired (UK), Cemex (Costa Rica), World Gold Council (Turkey), Dubai International Film Festival, Tele2 (Kazakhstan), Fiat (Mexico), Cipher Lab (Taiwan)

MS&L Group

What’s on (India), World Gold Council (China), Central agency for national insurance (France), National Defense Ministry (France), Klepierre Segece (France), Pernod Ricard (France), RapidShare (Germany), Apoteket (Sweden)

Publicis Worldwide

Dolce Gusto (France, USA), Chrysler (Canada), City of Toronto (Canada), Metro (Canada), Siemens Energy (Germany, Asia), Telefonica / Movistar (Spain), Sky News / Online project (UK), Cafe do Brasil (Italy), Orogel (Italy), J.K. Helene Curtis (India), Reserve Bank of India / VIP Bags (India), SCMP Classified Post (Hong Kong), Le Monde (France), Ricola (France), Descamps (France), Carte d’Or (France), Cyrillus (France), GT Land Plaza (China), La Halle (France), Aeroports de la Cote d’Azur (France), Nestle / Dairy Culinary (Mexico), Bupa (UK), Concha y Toro / VCT (Brazil), Hamburger / Financial (Germany), Bud Light (Canada), Beefeater Gin (UK), Randstad (UK), Belle Avenue (Thailand), Black Canyon (Thailand), Wellcome / Social business (Germany), Emirates Airlines (Netherlands), Stivoro / Anti-smoking campaign (Netherlands), Musee du Louvre (France), Losc / Lille Football Club (France), Hammerson (France), Shanghai World Expo’s / Information & communication pavilion account, Virgin Mobile (Australia), City of Dreams / Digital account (Hong Kong), Indigo Books / Largest Canadian book retailer, (Canada), Hasbro (Canada), Canadian Olympic Foundation (Canada), Fiat / Punto Evo / International launch in Spain, Portugal, Netherlands, Belgium, Ireland, Poland ( France), BNP Paribas / Investment Partners (Netherlands), Nestle Maggi (Malaysia)

Saatchi & Saatchi

Arla Foods – Lurpak (Global except for UK), BNP Paribas (Poland), Red.es digital TV (Spain), Chrysler & Dodge SUV (China), Vinda (China), Carlsberg: Dali, Wusu, XiXia (China), Petrobras (Brazil), Sanitarium (New Zealand), Toyota (Italy)

Starcom MediaVest Group

Honda (Germany, Italy, Norway, Poland, Sweeden, UK), CBS Film (USA), Turner (USA), Napa Auto Parts (USA), Nintendo (Netherlands), Dutch Government (Netherlands), Van Haren (Netherlands), Silesia Voivodship (Poland), Ministry of Environment (Poland), Skyways (Sweeden), FEW Online Retail (Sweeden), Prudential Direct Insurance (Taiwan), Coca-Cola (France), Mitre 10 (Australia), Mars Wrigley (China), in.gr (Greece), General Mills (China), Supermac’s (Ireland), AIB (Ireland), IKKS (Netherlands), Provident (Poland), Aflac (USA), Avon (USA), Kraft/Cadbury (global), American Egg Board (USA)

The Kaplan Thaler group

Aflac (USA)

ZenithOptimedia

Aviva (global), Reckitt Benckiser (global), Beijing Tourism Board, China Merchant Bank, Maoduoli (China), Electrolux (Vietnam), Georgia Pacific (Romania), Vivartia (Romania), BN Telecom (Turkey), Dyo (Turkey), Pegasus Airlines (Turkey), SAB Miller (Ecuador), Axtel (Mexico), Lindt (United Arab Emirates), Catalonian Government (Spain), Ministry of Environment (Spain), Perfume Shop (UK), Remington Consumer Products (USA), Beijing Lan Hai Cold Mineral Water (China), Warner Bros (Singapore), Universal Pictures (Mexico), Hubei Mobile (China), Reckitt Benckiser (China), AS Watson (APAC)

Glossary

Operating margin rate: operating margin/revenue.

Average half-year net debt: half-year average of average monthly net debt.

Free cash flow: cash flow from operations minus capital expenditures for tangible and intangible fixed assets, excluding acquisitions.

Net new business: this figure is derived not from financial reporting but from estimated media-marketing budgets based on annual business (net of losses) from new and existing clients.

For further information, please visit our website: http://www.finance.publicisgroupe.com

2010 Press Releases

08/01/10 Share repurchase program

11/01/10 Partnership between the Women’s Forum and Terrafemina

18/01/10 OCEANES 2018 – early redemption

05/02/10 Lov Group and Publicis Groupe in exclusive negotiations

17/02/10 2009 Annual Results

16/03/10 Management Board bonuses

30/03/10 Publicis Groupe acquires a minority stake of Brazilian agency
Taterka Comunicacoes

06/04/10 Publicis Groupe Acquires In-Sync Healthcare Agency

22/04/10 Publicis Groupe: First Quarter 2010 Revenue – Back to Growth

26/04/10 Re-Elections at the Publicis Groupe Supervisory Board

29/04/10 Publicis Groupe Acquires Remaining Capital of Leo Burnett / W&K
Beijing Advertising Co. Ltd

10/05/10 Publicis Groupe Announces its Acquisition from Dentsu Inc. of
7,500,000 of its own Shares in Order to Cancel Them

19/05/10 Publicis Groupe acquires Resolute Communications, in Healthcare
Communications

01/06/10 Publicis Groupe Annual General Shareholders’ Meeting – Dividend
set at 0.60 Euros per Share

01/06/10 Supervisory Board and Management Board of Publicis Groupe

28/06/10 Daniele Bessis Joins Publicis Groupe as CEO of Re:Sources
Worldwide

12/07/10 Publicis Groupe Acquires G4 Advertising co. Ltd. in China

For further information: http://www.publicisgroupe.com

Publicis Groupe

Consolidated financial statements – June 30, 2010 (unaudited)

Consolidated income statement

(in millions of euros) June 30, June 30, 2009
2010 2009

Revenue 2,538 2,209 4,524
Personnel expenses (1,613) (1,423) (2,812)
Other operating expenses (503) (453) (940)
Operating margin before depreciation
and amortization 422 333 772
Depreciation and amortization expense
(excluding intangibles arising on
acquisition) (53) (46) (92)
Operating margin 369 287 680
Amortization of intangibles arising on
acquisition (17) (15) (30)
Impairment – (20) (28)
Non-current income (expense) 1 5 7
Operating income 353 257 629
Interest expense (40) (34) (73)
Interest income 6 9 12
Cost of net financial debt (34) (25) (61)
Other financial income (expenses) (8) (2) (9)
Income of consolidated companies before
taxes 311 230 559
Income taxes (89) (59) (146)
Net income of consolidated companies 222 171 413
Share in net income of associates – 1 4
Net income 222 172 417
Of which:

– Net income attributable to
non-controlling interests
(Minority interests) 9 5 14
– Net income attributable to equity
holders of the parent company 213 167 403

Per share data (in euros) – Net income
attributable to equity holders of the
parent company
Number of shares 204,545,563 200,760,562 202,257,125
Net earnings per share 1.04 0.83 1.99
Number of shares – diluted 237,073,116 206,261,458 220,867,344
Net earnings per share – diluted 0.95 0.82 1.90

Consolidated statement of comprehensive income

(in millions of euros) June 30, June 30, 2009
2010 2009

Net income for the year (a) 222 172 417
Other comprehensive income
– Valuation of available-for-sale
investments at fair value (1) 4 12
– Actuarial gains and losses on defined
benefit plans (24) (16) (4)
– Translation of foreign operations 431 (12) (59)
– Deferred taxes on other comprehensive
income 7 5 1
Other comprehensive income for the period
(b) 413 (19) (50)

Total comprehensive income for the period
(a) + (b) 635 153 367
Of which:

– Comprehensive income attributable to
non-controlling interests (Minority
interests) 18 7 17
– Comprehensive income attributable to
Equity holders of the parent company 617 146 350

Consolidated balance sheet

(in millions of euros) June 30, 2010 December 31, 2009

Assets
Goodwill, net 4,416 3,928
Intangible assets, net 937 835
Property and equipment, net 480 458
Deferred tax assets 96 73
Investments in associates 42 49
Other financial assets 113 94
Non-current assets 6,084 5,437
Inventory and costs billable to clients 406 290
Accounts receivable 5,941 4,875
Other receivables and other current assets 609 548
Cash and cash equivalents 1,418 1,580
Current assets 8,374 7,293

Total Assets 14,458 12,730

Liabilities and shareholders’ equity
Share capital 76 79
Additional paid-in capital and retained earnings 3,014 2,734
Equity attributable to holders of the
parent company 3,090 2,813
Non-controlling Interests (Minority interests) 21 25
Total Equity 3,111 2,838
Long-term financial debt (more than 1 year) 1,812 1,796
Deferred tax liabilities 235 214
Long-term provisions 499 449
Non-current liabilities 2,546 2,459
Accounts payable 6,858 5,835
Short-term financial debt (less than 1 year) 227 214
Income taxes payable 75 63
Short-term provisions 105 100
Other creditors and other current liabilities 1,536 1,221
Current liabilities 8,801 7,433

Total Liabilities and Equity 14,458 12,730

Consolidated cash flow statement

(in millions of euro) June 30, June 30, 2009
2010 2009
Cash flows from operations
Net income 222 172 417
Adjustment for non-cash income and
expenses:
Income taxes 89 59 146
Cost of net financial debt 34 25 61
Capital (gains) losses on disposal
(before tax) (1) (4) (10)
Depreciation, amortization and
impairment on property and equipment and
intangible assets 70 81 150
Non-cash expenses on stock options and
similar items 15 12 24
Other non-cash income and expenses 3 5 11
Equity in net income of associates – (1) (4)

Dividends received from equity accounted
investments 11 6 9
Taxes paid (103) (86) (157)
Interest paid (36) (51) (75)
Interest received 7 10 16
Change in working capital requirements(1) (266) (495) 59
Net cash flows provided by (used in)
operating activities (I) 45 (267) 647
Cash flows from investment operations
Purchases of property and equipment and
intangible assets (35) (33) (74)
Proceeds from sale of property and
equipment and intangible assets 1 – 10
Proceeds from sale of investments and
other financial assets, net (5) 3 10
Acquisition of subsidiaries (48) (70) (298)
Divestment of subsidiaries 1 – 1
Net cash flows provided by (used in)
investment operations (II) (86) (100) (351)
Cash flows from financing operations
Capital Increase – – -
Dividends paid to parent company
shareholders – – (107)
Dividends paid to minority shareholders
of subsidiaries (14) (15) (26)
Cash received on new borrowings 13 734 744
Reimbursement of borrowings (59) (115) (108)
Net (purchases)/sales of treasury shares
and equity warrants (249) 1 5
Cash received on hedging transactions – – -
Net cash flows provided by (used in)
financing operations (III) (309) 605 508
Impact of exchange rate fluctuations (IV) 173 34 (94)
Net change in consolidated cash flows (I
+ II + III + IV) (177) 272 710
Cash and cash equivalents as of January 1, 1,580 867 867
Bank overdrafts as of January 1, (33) (30) (30)
Net cash and cash equivalents at
beginning of period 1,547 837 837
Cash and cash equivalents at end of
period 1,418 1,162 1,580
Bank overdrafts at end of period (48) (53) (33)
Net cash and cash equivalents at end of
period 1,370 1,109 1,547
Net change in cash and cash equivalents (177) 272 710
(1) Breakdown of change in working
capital requirements
Change in inventory and costs billable
to clients (73) 31 29
Change in accounts receivable and other
receivables (458) 729 160
Change in accounts payable, other
creditors and provisions 265 (1,255) (130)
Variation in working capital
requirements (266) (495) 59

Statement of changes in consolidated shareholders’ equity

Number of (in millions of Capital Additional Reserves Translation
outstanding euros) stock paid-in and reserve
shares capital retained
earnings

178,854,301 January 1, 2009 78 2,553 (105) (315)
Net income for the 167
period
Other
comprehensive
income
Valuation of
available-for-sale
investments at
fair value
Actuarial gains (11)
and losses on
defined benefit
plans
Translation of (14)
foreign operations
Total other – – (11) (14)
comprehensive
income
Total – – 156 (14)
comprehensive
income for the
period

Equity component 49
of OCEANE 2014
Dividends (107)
Share-based 12
compensation
Additional (3)
interest on Oranes
Effect of changes
in scope of
consolidation and
of commitments to
purchase minority
interests
72,910 Purchases/sales of 1
treasury shares
178,927,211 June 30, 2009 78 2,553 3 (329)

Number of (in millions Fair-value Equity Non-Controlling Total
of outstanding euros) reserve attributable Interest Equity
shares to holders (Minority
of the interests)
parent
company

178,854,301 January 1, 2009 109 2,320 30 2,350
Net income for the 167 5 172
period
Other
comprehensive
income
Valuation of 4 4 4
available-for-sale
investments at
fair value
Actuarial gains (11) (11)
and losses on
defined benefit
plans
Translation of (14) 2 (12)
foreign operations
Total other 4 (21) 2 (19)
comprehensive
income
Total 4 146 7 153
comprehensive
income for the
period

Equity component 49 49
of OCEANE 2014
Dividends (107) (15) (122)
Share-based 12 12
compensation
Additional (3) (3)
interest on Oranes
Effect of changes – 3 3
in scope of
consolidation and
of commitments to
purchase minority
interests
72,910 Purchases/sales of 1 1
treasury shares
178,927,211 June 30, 2009 113 2,418 25 2,443

Number of (in millions of Capital Additional Reserves Translation
outstanding euros) stock paid-in and reserve
shares capital retained
earnings

187,168,768 January 1, 2010 79 2,600 390 (377)
Net income 213
Other
comprehensive
income
Valuation of
available-for-sale
investments at
fair value
Actuarial gains (17)
and losses on
defined benefit
plans
Translation of 422
foreign operations
Total other – – (17) 422
comprehensive
income
Total – – 196 422
comprehensive
income for the
period

Dividends paid (107)
Share-based 19
compensation
Additional (3)
interest on Oranes
Effect of changes
in scope of
consolidation and
of commitments to
purchase minority
interests
(7,500,000) Cancellation of (3) (215)
Publics Groupe SA
shares
(807,764) Purchases/sales of (31)
treasury shares
178,861,004 June 30, 2010 76 2,385 464 45

Number of (in millions Fair-value Equity Non-Controlling Total
of outstanding euros) reserve attributable Interests Equity
shares to holders (Minority
of the interests)
parent
company

187,168,768 January 1, 2010 121 2,813 25 2,838
Net income 213 9 222
Other
comprehensive
income
Valuation of (1) (1) (1)
available-for-sale
investments at
fair value
Actuarial gains (17) (17)
and losses on
defined benefit
plans
Translation of 422 9 431
foreign operations
Total other (1) 404 9 413
comprehensive
income
Total (1) 617 18 635
comprehensive
income for the
period

Dividends paid (107) (14) (121)
Share-based 19 19
compensation
Additional (3) (3)
interest on Oranes
Effect of changes
in scope of
consolidation and
of commitments to
purchase minority
interests – (8) (8)
(7,500,000) Cancellation of (218) (218)
Publics Groupe SA
shares
(807,764) Purchases/sales of (31) (31)
treasury shares
178,861,004 June 30, 2010 120 3,090 21 3,111

Earnings per share calculation details

Earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of
earnings per share
Net income attributable to equity holders
of the parent a 213 167
Impact of dilutive instruments:
– Savings in financial expenses related
to the conversion of debt instruments,
net of tax (1) 13 2
Net income attributable to equity holders
of the parent – diluted b 226 169
Number of shares used for the calculation
of earnings per share
Average number of shares composing the
company’s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average
for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the
calculation c 204,545,563 200,760,562
Impact of dilutive instruments: (2)
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 -
– Shares resulting from the conversion of
convertible bonds (1) 28,450,700 4,455,073
Number of shares – diluted
(en euro) d 237,073,116 206,261,458

Net earnings per share a/c 1.04 0.83

Net earnings per share – diluted b/d 0.95 0.82

(1) In 2010 and 2009, both Oceane 2018 and Oceane 2014 were taken into account for the calculations (the Oceane 2014, issued in June 2009, was only included for one month for the first semester 2009).

(2) Only stock-options and equity warrants with a dilutive effect (whose exercise price is lower than the average share price for the period) are taken into consideration.

Headline earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of
headline earnings per share (1)
Net income attributable to equity holders
of the parent 213 167
Items excluded:
– Amortization of intangibles arising on
acquisition, net of tax 10 9
– Impairment, net of tax – 16
– Deferred tax asset linked to Oceane 2014(2) – (11)

Headline income attributable to equity
holders of the parent e 223 181
Impact of dilutive instruments:
– Savings in financial expenses related to
the conversion of debt instruments, net of
tax 13 2
Adjusted net income attributable to equity f
holders of the parent – diluted 236 183

Number of shares used for the calculation
of earnings per share
Average number of shares composing the
company’s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average
for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the
calculation c 204,545,563 200,760,562
Impact of dilutive instruments:
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 -
– Shares resulting from the conversion of
convertible bonds 28,450,700 4,455,073
Number of shares – diluted
(in euro) d 237,073,116 206,261,458

Headline earnings per share (1) e/c 1.09 0.90

Headline earnings per share – diluted (1) f/d 1.00 0.89

(1) Earnings per share before Amortization of intangibles from acquisitions, impairment and deferred tax assets linked to equity component of Oceane 2014.

(2) Effect of deferred tax asset recognized against deferred tax liabilities linked to equity component of Oceane 2014 recorded as equity.

SOURCE Publicis Groupe

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Publicis Groupe: First Half 2010 Results

July 30, 2010 By Leave a Comment

http://www.businesswire.com/news/home/20100728007270/en

PARIS–(Business Wire)–
Regulatory News:

Second quarter 2010 (EUR million)

* Revenue1,376 (+21.3%)
* Organic growth+7.1%

First half 2010 (EUR million)

* Revenue2,538 (+14.9%)
* Organic growth+5.3%
* Operating margin369 (+28.6%)
* Operating margin rate14.5%
* Net income (Group share) 213 (+27.5%)
* Free Cash Flow (1)277(+42%)
* Headline diluted EPS (2) 1.00 euro (+12%)
* Debt/equity ratio0.20

(1)Before changes in WCR

(2)After elimination of impairment, amortization of intangibles arising on
acquisitions and the tax credit arising on the deferred tax liability on the
Oceane 2014 convertible bond.

Maurice Lévy, Chairman and Chief Executive Officer of Publicis Groupe declares:

“With organic growth of 7.1% for the second quarter of 2010 and 5.3% for the
half-year, an operating margin of 14.5% and net income up by 27.5%, Publicis
Groupe has once again given proof of its energy and ability to create value,
even in the aftermath of the worst global economic crisis in many years.

This growth is the result of a strategy that has been effectively executed over
a number of years. We were quick to take the digital route, gaining a decisive
lead over our competitors and providing clients with the best and most
innovative solutions for the new landscape being shaped by the explosion of
digital technology.

We also opted for expansion in emerging markets. The economic crisis may have
slowed the pace of their growth, but ZenithOptimedia`s latest estimates for 2011
and 2012 bode well for strong growth.

The challenges our clients face demand from us greater inventiveness, creativity
and innovation, and relentless operational efforts to ensure that they win
whatever the circumstances. I would like to thank them for their confidence, and
to pay tribute to the hard work of all our teams who have performed wonders
within the constraints of strict cost controls, enabling Publicis Groupe to
emerge stronger than ever from the crisis.

Tight cost containment since end 2008 and strong growth in revenue have boosted
operating margin to an impressive 14.5%, despite the fact that Razorfish is
still in the integration phase with a margin that, while improving, is still
well below average for the Groupe.

Without lapsing into the euphoria that these half-year results for our Groupe
might warrant, I remain firmly convinced that Publicis Groupe will succeed in
outperforming the market in terms of both growth and margin.”

***

At its meeting on July 28, 2010, chaired by Ms. Elisabeth Badinter, the
Supervisory Board of Publicis Groupe (Paris:PUB) examined the first half results
for 2010 presented by Mr. Maurice Lévy, Chairman and Chief Executive Officer of
Publicis Groupe.

Key figures

EUR million, except for percentages and per-share data (EUR) 1st half 2010 1st half 2009 2010/2009
Income statement data
Revenue 2,538 2,209 14.9%
Operating margin before depreciation and amortization 422 333 26.7%
As % of revenue 16.6% 15.1%
Operating margin 369 287 28.6%
As % of revenue 14.5% 13.0%
Operating income 353 257 37.4%
Net income attributable to Publicis Groupe 213 167 27.5%
Earnings per share (1) 1.04 0.83 25.3%
Diluted earnings per share (2) 0.95 0.82 15.8%
Balance sheet data June 30, 2010 June 30, 2009
Total assets 14,458 11,408
Shareholders` equity 3,090 2,418

(1)The average number of shares used to calculate earnings per share was 204.5
million for 1st Half 2010 and 200.8 million for 1st Half 2009.

(2)The average number of shares used to calculate diluted earnings per share was
237.1 million for 1st Half 2010 and 206.3 million for 1st Half 2009. This
includes stock options, free shares, equity warrants and convertible bonds with
a dilutive effect on EPS. For the first six months of 2010, the instruments that
diluted EPS were the Oceane convertible bonds, equity warrants, free shares and
certain tranches of stock options with a strike price below the average price
over the period.

Analysis of key figures

I.First half 2010 activity

The global economy rallied over the first half of 2010. After forecasting a 0.9%
increase in 2010 global advertising expenditure in its December 2009 forecast,
ZenithOptimedia upgraded its forecast in April this year to 2.2% growth and
upped its latest estimate yet again, on July 19, to 3.5%. This steady
improvement in growth forecasts is most encouraging.

As the advertising market recovered, Publicis Groupe posted an increase of 14.9%
in reported revenue for the first half and organic growth of +5.3%.

Second quarter revenue was up by 21.3% and organic growth rose to 7.1%.

* Revenue in first half 2010

Consolidated revenue for the first half of 2010 was EUR 2,538 million compared
to EUR 2,209 million for the first half of 2009, an increase of 14.9% (exchange
rate impact was positive at EUR 55 million).

Organic growth was 5.3%.

First half growth reflects the strong recovery in advertising expenditure after
the record slump triggered by the 2009 economic crisis. The larger networks, in
particular Leo Burnett and Publicis Worldwide along with VivaKi, made the most
of the upturn, and digital activities maintained their strong growth trend.

The breakdown of consolidated revenue for the first half of 2010 is as follows:
33% from advertising, 20% from media and 47% from specialized agencies and
marketing services (including digital activities).

- Breakdown of first half 2010 revenue by region

(EUR million) Revenue Organic Growth
1st half 2010 1st half 2009
Europe 805 738 +3.1%
North America 1,258 1,061 +6.6%
Asia-Pacific 286 238 +6.0%
Latin America 126 109 +10.8%
Africa and Middle East 63 63 -3.3%
Total 2,538 2,209 +5.3%

Almost all the regions, Europe included, saw a return to growth, with the
exception of Africa and the Middle East, which is still suffering from Dubai`s
financial crisis.

North America continues to enjoy good growth. Organic growth for the USA was
7.2%, fuelled by strong growth from all the agencies and significant
contributions from the healthcare and digital activities, the latter accounting
for 42.5% of the region`s revenue.

The Asia Pacific region is growing again, thanks largely to India and Korea.

Every country in Latin America except Chile reported growth.

Expressed in US dollars, first half revenue was USD 3,362 million, an increase
of 14.3%.

* Revenue in 2nd quarter 2010

Consolidated second quarter 2010 revenue was EUR 1,376 million, an increase of
21.3% on the figure of EUR 1,134 million for the corresponding period in 2009
(the exchange rate impact was positive at EUR 73 million).

Organic growth was +7.1% in the second quarter, a significant improvement on
first quarter organic growth of +3.1%.

The second quarter undoubtedly benefited from a low basis of comparison, but the
marked upswing in advertising business seen in the first quarter was also
maintained.

Growth was also fuelled by new business wins in 2009 and by an increase in
advertising spending by major clients.

- Breakdown of 2nd quarter 2010 revenue by region

(EUR million) Revenue Organic Growth
2nd quarter 2010 2nd quarter 2009
Europe 437 381 +7.3%
North America 679 535 +8.1%
Asia-Pacific 154 123 +5.3%
Latin America 71 58 +11.5%
Africa and Middle East 35 37 -10.4%
Total 1,376 1,134 +7.1%

Europe performed well in the second quarter. Only Africa and the Middle East
posted negative figures.

Operating margin and operating income

Operating margin before depreciation and amortization was EUR 422 million in
first half 2010, up 26.7% from EUR 333 million for the first half of 2009.

Operating margin was EUR 369 million compared with EUR 287 million for the same
period in 2009, an increase of 28.6%.

Operating margin rate for the first half of the year was 14.5%, up from 13% for
the same period in 2009. This reflects the significant upturn in activity as
compared with first half 2009, and continued tight control over costs. The
effects of measures taken in 2009, particularly with regard to containing
personnel costs, are beginning to be felt.

Operating income for first half 2010 was EUR 353 million compared to EUR 257
million for the corresponding period in 2009, an increase of 37.4%.

Net income

Net income attributable to the Group was EUR 213 million, an increase of 27.5%
on the net income of EUR 167 million reported for the first half of 2009.

Net income includes a net financial expense of EUR 42 million and a tax charge
of EUR 89 million for the half-year.

Free Cash Flow

The Groupe`s free cash flow, excluding changes in WCR, was up sharply (+42% on
the corresponding period of 2009) at EUR 277 million. The increase is directly
linked to the increase in operating margin before depreciation and amortization.

Net financial debt at June 30, 2010

Net financial debt was EUR 618 million at June 30, 2010 compared to 899 EUR
million at June 30, 2009. This figure includes the impact of the partial buyback
of Publicis Groupe shares held by SEP Badinter-Dentsu at a cost of EUR 217.5 EUR
million. Net financial debt at December 30, 2009 was EUR 313 million, the raise
observed at June 30,2010 reflecting the usual seasonal effect.

The Groupe`s average net debt for the first half of 2010 was EUR 673 million,
down sharply on the figures of EUR 1, 002 million for first half 2009 and EUR
929 million for the full year 2009.

The Groupe`s available liquidity position at June 30, 2010 was EUR 3.6 billion.

Shareholders` equity at June 30, 2010

Consolidated shareholders` including minority interests was EUR 3,111 million at
June 30, 2010, compared with EUR 2,838 million at December 31, 2009. This
includes the impact of allocation of 2009 income (dividends of EUR 107 million
distributed).

The debt/equity ratio thus rose from 0.14 at December 31, 2009 to 0.20 at June
30, 2010.

II.NETWORKS

The upturn in advertising markets over the course of the first half of the year
is benefiting all the Groupe`s networks. The growing contribution from digital
activities, up to 28.1% of first half revenue compared with 20.7% (at 2010
exchange rate) for the first half of 2009, once again confirms the Groupe`s
strategic decision to help its clients keep pace with a changing consumer
landscape and the new digital audience. Digital activities are now making their
way into every one of the Groupe`s networks, bringing the benefits of expertise
and new ideas in virtually every area of digital operations, be it search,
display, or the social and mobile networks made possible by the creation of the
VivaKi Nerve Center (and at the same time avoiding duplication of investments).

III.COST CONTROL

The Groupe continues to exercise tight control over its costs. Cost optimization
programs are the focus of unrelenting attention and are ongoing. The deployment
of shared service centers, initiated some years ago, continues, as does the
process of regionalization. The “Americas” platform, designed to serve the
entire continent, is scheduled to go fully operational at the end of this year.
The rollout (first local and subsequently global) of ERP, made possible by the
integration of most agencies into shared service centers and the adoption of
shared processes, continues. The Group expects to achieve a significant
reduction in its operating costs from this investment, through global
harmonization of processes and systems as from 2012.

Thanks to a solid balance sheet and improved cost control, the Groupe is well
placed to meet market needs and sharpen its competitive edge.

IV.NEW BUSINESS: USD 2.1 BILLION IN NET WINS

Publicis Groupe took in USD 2.1 billion in net new business in the first half of
2010, clear testimony to the attractiveness of its products and services (see
Appendix for list).

V.ACQUISITIONS

Publicis Groupe has embarked on a process of securing long-term growth by
ramping up its engagement in digital activities and emerging economies, both of
which are growth drivers for the communications sector today and in the future.

A significant number of targets have been identified, with special interest
focusing on the opportunities offered by China.

On March 30, Publicis Groupe announced it had acquired a minority stake in
Taterka Comunicações (Taterka), an advertising agency based in São Paulo,
Brazil.

On April 6, 2010, the Groupe acquired Canadian agency In-Sync. Founded in 1989,
the Toronto-based agency operates in the health and wellness space, specializing
in market research consultancy and offering innovative marketing solutions to
its biopharma clients.

At the end of April, Publicis Groupe bought out the minority interests in W&K
and holds now 100% of the capital of this Chinese agency, now rebranded Leo
Burnett Beijing Communications Co., Ltd.

On May 19, 2010, Publicis Groupe acquired Resolute Communications Ltd. Founded
in 2002, Resolute Communications provides healthcare communications programs
spanning strategic consulting, medical education, and media and public
relations. Resolute is headquartered in London with an office in New York.
Resolute will be merged with Publicis Life Brands in London to form a new entity
renamed Publicis Life Brands Resolute, that will further entrench Publicis
Healthcare Communications Group (PHCG) as a leader in the United Kingdom.

VI.FINANCE

January 2010 saw the early redemption of some of the outstanding 2018 Oceane
convertible bonds. According to the 2018 Oceane prospectus, any holder was
entitled to request early redemption of all or part of its Oceane bonds at the
early redemption price of EUR 45.19 per bond. At the early redemption date, i.e.
January 18, 2010, a total of 617,985 Oceane bonds were repaid early for a total
amount of EUR 28 million.

The number of Oceane bonds subsequently outstanding is 2,624,538, representing
14.9% of the number initially issued (17,624,521).

Furthermore, in view of the authorization granted by the Combined Annual General
Meeting of the shareholders on June 9, 2009, Publicis Groupe SA entered into an
agreement on January 8, 2010, with an authorized intermediary, with a view to
purchasing 2.7 million Publicis Groupe shares. This authorization was granted
for a period of eighteen months from June 9, 2009, i.e. until December 8, 2010.
To date, 2,482,440 shares have been purchased under this program.

On May 10, 2010 Publicis Groupe purchased from Dentsu Inc. a block of 7,500,000
of its own shares, held by SEP Dentsu-Badinter, to be cancelled. The total price
paid for the block was EUR 217.5 million, equivalent to EUR 29 per share. The
shares were immediately cancelled.

VII.RECENT EVENTS

Acquisitions

On July 12, 2010, Publicis Groupe announced its acquisition of G4, a
Beijing-based advertising agency. Launched in 2009, G4 offers integrated
communications solutions, including advertising, design and strategic
consulting, to Nestlé in China. G4 has rebranded as Publicis G4 and will join
forces with the Publicis Beijing Nestlé team. Concentrating all the skills and
resources dedicated to Nestlé within Publicis G4 will provide an enhanced
service to this key customer throughout Greater China and the Asia region.

New Business

New business maintained its dynamic pace at the beginning of second half 2010
after total gains of USD 1 billion for the second quarter.

VIII.Outlook

For the second time in succession, ZenithOptimedia has upgraded its forecasts of
growth in global advertising expenditure for 2010, most recently to 3.5% growth.
These significantly higher forecasts confirm the upturn in the market, after a
year of record decline in global advertising expenditure in 2009.

Publicis Groupe`s growth rates for the first two quarters of 2010 are a mark of
excellent performance and testimony to its judicious strategic choices, with
digital activities continuing to expand across all the Groupe`s networks and
creating the right conditions for innovation and value creation. Emerging
economies are returning to growth rates more commensurate with their level of
development and opening up new prospects for the Groupe.

These two cornerstones offer assurances of growth both now and in the future.

Investments in talent and in digital activities are still very much ongoing,
made possible by strict cost control and a sound financial situation.

With many emerging economies, China in particular, returning to high growth, a
recovering US economy (although flat since May), and certain European countries
(including France and the UK) holding up well, Publicis Groupe confirms its
target of outperforming the market on growth for full year 2010.

***

“This document contains forward-looking statements. The use of the words
“aim(s),” “expect(s),” “feel(s),” “will,” “may,” “believe(s),” “anticipate(s)”
and similar expressions in this press release are intended to identify those
statements as forward looking. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Other than in
connection with applicable securities laws, Publicis Groupe undertakes no
obligation to publish revised forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect the occurrence
of unanticipated events. Publicis Groupe urges you to review and consider the
various disclosures it made concerning the factors that may affect its business
carefully, including the disclosures made to the French financial authority
(AMF)”

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world’s third largest
communications group. In addition, it is ranked as the world`s second largest
media counsel and buying group, and is the first global network in digital and
healthcare communications. With activities spanning 104 countries on five
continents, the Groupe employs approximately 46,000 professionals. Publicis
Groupe offers local and international clients a complete range of advertising
services through three global advertising networks, Leo Burnett, Publicis,
Saatchi & Saatchi, two multi-hub networks, Fallon and 49%-owned Bartle Bogle
Hegarty, as well as New York-based Kaplan Thaler Group. Media consultancy and
buying is offered through the two first ranked worldwide networks, Starcom
MediaVest Group and ZenithOptimedia; and interactive and digital marketing led
by the two first ranked Digitas and Razorfish networks. Publicis Groupe launched
VivaKi to leverage the combined scale of the autonomous operations of Digitas,
Denuo, Razorfish, Starcom MediaVest Group and ZenithOptimedia to develop new
services, tools, and next generation digital platforms. Publicis Groupe`s
specialized agencies and marketing services offer healthcare communications with
Publicis Healthcare Communications Group (PHCG, the first network in healthcare
communications), sustainability communications and multicultural communications.
With MS&LGroup, one of the world’s top three PR and Events networks, expertise
ranges from corporate and financial communications to public relations and
public affairs, branding, social media marketing and events, sports marketing
and events.

Web site: www.publicisgroupe.com

*******

Appendices

New Business – 1st Half 2010
USD 2.1 billion (net)

KEY WINS

DIGITAS
Electronic Arts (Brazil), Topper (Brazil), CA (USA), Goodyear (USA), Aflac
(USA), Sears (USA), Whitewave (USA), Olay (Hong Kong/ Taiwan), Airtel (India),
Nestle (India), Renault ZE (France)

FALLON
Cadbury Flake (UK), French Connection (global), Nokia (global), The Cosmopolitan
of Las Vegas. (USA), Cadillac (USA)

LEO BURNETT
Chrysler (UK, Germany, Turkey), Samsung (Malaysia, Czech Republic, Thailand,
Kazakhstan), COI/BIS (UK), Research in Motion- Blackberry (UK), DUFRY- duty free
(Mexico), Sigma Alimentos (Mexico), Koleston (Colombia), Nestlé (Guatemala),
Sanofi-Aventis (Guatemala), Canon (Thailand), Amway (China), Siemens (China),
Merrill Lynch (Korea), British Council (Sri Lanka), BMW (Malaysia), Pilipinas
Shell (Philippines), Arla Food (Russia), Nycomed (Latvia), The ITI Group
(Poland), Altıparmak (Turkey), El-Bi Electrics (Turkey), Turkcell (Turkey),
Ülker (Turkey), Delipapier Sofidel (France), Campero (Guatemala, Salvador),
V-Inspired (UK), Cemex (Costa Rica), World Gold Council (Turkey), Dubai
International Film Festival, Tele2 (Kazakhstan), Fiat (Mexico), Cipher Lab
(Taiwan)

MS&L GROUP
What`s on (India), World Gold Council (China), Central agency for national
insurance (France), National Defense Ministry (France), Klépierre Ségécé
(France), Pernod Ricard (France), RapidShare (Germany), Apoteket (Sweden)

PUBLICIS WORLDWIDE
Dolce Gusto (France, USA), Chrysler (Canada), City of Toronto (Canada), Metro
(Canada), Siemens Energy (Germany, Asia), Telefonica / Movistar (Spain), Sky
News / Online project (UK), Cafè do Brasil (Italy), Orogel (Italy), J.K. Helene
Curtis (India), Reserve Bank of India / VIP Bags (India), SCMP Classified Post
(Hong Kong), Le Monde (France), Ricola (France), Descamps (France), Carte d’Or
(France), Cyrillus (France), GT Land Plaza (China), La Halle (France), Aéroports
de la Cote d’Azur (France), Nestlé / Dairy Culinary (Mexico), Bupa (UK), Concha
y Toro / VCT (Brazil), Hamburger / Financial (Germany), Bud Light (Canada),
Beefeater Gin (UK), Randstad (UK), Belle Avenue (Thailand), Black Canyon
(Thailand), Wellcome / Social business (Germany), Emirates Airlines
(Netherlands), Stivoro / Anti-smoking campaign (Netherlands), Musée du Louvre
(France), Losc / Lille Football Club (France), Hammerson (France), Shanghai
World Expo’s / Information & communication pavilion account, Virgin Mobile
(Australia), City of Dreams / Digital account (Hong Kong), Indigo Books /
Largest Canadian book retailer, (Canada), Hasbro (Canada), Canadian Olympic
Foundation (Canada), Fiat / Punto Evo / International launch in Spain, Portugal,
Netherlands, Belgium, Ireland, Poland ( France), BNP Paribas / Investment
Partners (Netherlands), Nestlé Maggi (Malaysia)

SAATCHI & SAATCHI
Arla Foods – Lurpak (Global except for UK), BNP Paribas (Poland), Red.es digital
TV (Spain), Chrysler & Dodge SUV (China), Vinda (China), Carlsberg: Dali, Wusu,
XiXia (China), Petrobras (Brazil), Sanitarium (New Zealand), Toyota (Italy)

STARCOM MEDIAVEST GROUP
Honda (Germany, Italy, Norway, Poland, Sweeden, UK), CBS Film (USA), Turner
(USA), Napa Auto Parts (USA), Nintendo (Netherlands), Dutch Government
(Netherlands), Van Haren (Netherlands), Silesia Voivodship (Poland), Ministry of
Environment (Poland), Skyways (Sweeden), FEW Online Retail (Sweeden), Prudential
Direct Insurance (Taiwan), Coca-Cola (France), Mitre 10 (Australia), Mars
Wrigley (China), in.gr (Greece), General Mills (China), Supermac’s (Ireland),
AIB (Ireland), IKKS (Netherlands), Provident (Poland), Aflac (USA), Avon (USA),
Kraft/Cadbury (global), American Egg Board (USA)

THE KAPLAN THALER GROUP
Aflac (USA)

ZENITHOPTIMEDIA
Aviva (global), Reckitt Benckiser (global), Beijing Tourism Board, China
Merchant Bank, Maoduoli (China), Electrolux (Vietnam), Georgia Pacific
(Romania), Vivartia (Romania), BN Telecom (Turkey), Dyo (Turkey), Pegasus
Airlines (Turkey), SAB Miller (Ecuador), Axtel (Mexico), Lindt (United Arab
Emirates), Catalonian Government (Spain), Ministry of Environment (Spain),
Perfume Shop (UK), Remington Consumer Products (USA), Beijing Lan Hai Cold
Mineral Water (China), Warner Bros (Singapore), Universal Pictures (Mexico),
Hubei Mobile (China), Reckitt Benckiser (China), AS Watson (APAC)

*******

Glossary

Operating margin rate: operating margin/revenue.

Average half-year net debt: half-year average of average monthly net debt.

Free cash flow: cash flow from operations minus capital expenditures for
tangible and intangible fixed assets, excluding acquisitions.

Net new business: this figure is derived not from financial reporting but from
estimated media-marketing budgets based on annual business (net of losses) from
new and existing clients.

For further information, please visit our website:
www.finance.publicisgroupe.com

*******

2010 Press Releases

08/01/10 Share repurchase program
11/01/10 Partnership between the Women`s Forum and Terrafemina
18/01/10 OCEANES 2018 – early redemption
05/02/10 Lov Group and Publicis Groupe in exclusive negotiations
17/02/10 2009 Annual Results
16/03/10 Management Board bonuses
30/03/10 Publicis Groupe acquires a minority stake of Brazilian agency Taterka Comunicações
06/04/10 Publicis Groupe Acquires In-Sync Healthcare Agency
22/04/10 Publicis Groupe: First Quarter 2010 Revenue – Back to Growth
26/04/10 Re-Elections at the Publicis Groupe Supervisory Board
29/04/10 Publicis Groupe Acquires Remaining Capital of Leo Burnett / W&K Beijing Advertising Co. Ltd
10/05/10 Publicis Groupe Announces its Acquisition from Dentsu Inc. of 7,500,000 of its own Shares in Order to Cancel Them
19/05/10 Publicis Groupe acquires Resolute Communications, in Healthcare Communications
01/06/10 Publicis Groupe Annual General Shareholders’ Meeting – Dividend set at 0.60 Euros per Share
01/06/10 Supervisory Board and Management Board of Publicis Groupe
28/06/10 Danièle Bessis Joins Publicis Groupe as CEO of Re:Sources Worldwide
12/07/10 Publicis Groupe Acquires G4 Advertising co. Ltd. in China

For further information: www.publicisgroupe.com

Publicis Groupe

Consolidated financial statements – June 30, 2010 (unaudited)

Consolidated income statement

(in millions of euros) June 30, 2010 June 30, 2009 2009
Revenue 2,538 2,209 4,524
Personnel expenses (1,613) (1,423) (2,812)
Other operating expenses (503) (453) (940)
Operating margin before depreciation and amortization 422 333 772
Depreciation and amortization expense (excluding intangibles arising on acquisition) (53) (46) (92)
Operating margin 369 287 680
Amortization of intangibles arising on acquisition (17) (15) (30)
Impairment – (20) (28)
Non-current income (expense) 1 5 7
Operating income 353 257 629
Interest expense (40) (34) (73)
Interest income 6 9 12
Cost of net financial debt (34) (25) (61)
Other financial income (expenses) (8) (2) (9)
Income of consolidated companies before taxes 311 230 559
Income taxes (89) (59) (146)
Net income of consolidated companies 222 171 413
Share in net income of associates – 1 4
Net income 222 172 417
Of which: 9 5 14
– Net income attributable to non-controlling interests
(Minority interests)
– Net income attributable to equity holders of the parent company 213 167 403

Per share data (in euros) – Net income attributable to equity holders of the parent company
Number of shares 204,545,563 200,760,562 202,257,125
Net earnings per share 1.04 0.83 1.99
Number of shares – diluted 237,073,116 206,261,458 220,867,344
Net earnings per share – diluted 0.95 0.82 1.90

Consolidated statement of comprehensive income

(in millions of euros) June 30, 2010 June 30, 2009 2009
Net income for the year (a) 222 172 417
Other comprehensive income
– Valuation of available-for-sale investments at fair value (1) 4 12
– Actuarial gains and losses on defined benefit plans (24) (16) (4)
– Translation of foreign operations 431 (12) (59)
– Deferred taxes on other comprehensive income 7 5 1
Other comprehensive income for the period (b) 413 (19) (50)

Total comprehensive income for the period (a) + (b) 635 153 367
Of which: 18 7 17

- Comprehensive income attributable to non-controlling interests
(Minority interests)
– Comprehensive income attributable to Equity holders of the parent company 617 146 350

Consolidated balance sheet

(in millions of euros) June 30, 2010 December 31, 2009
Assets
Goodwill, net 4,416 3,928
Intangible assets, net 937 835
Property and equipment, net 480 458
Deferred tax assets 96 73
Investments in associates 42 49
Other financial assets 113 94
Non-current assets 6,084 5,437
Inventory and costs billable to clients 406 290
Accounts receivable 5,941 4,875
Other receivables and other current assets 609 548
Cash and cash equivalents 1,418 1,580
Current assets 8,374 7,293

Total Assets 14 ,458 12,730

Liabilities and shareholders` equity
Share capital 76 79
Additional paid-in capital and retained earnings 3,014 2,734
Equity attributable to holders of the parent company 3,090 2,813
Non-controlling Interests (Minority interests) 21 25
Total Equity 3,111 2,838
Long-term financial debt (more than 1 year) 1,812 1,796
Deferred tax liabilities 235 214
Long-term provisions 499 449
Non-current liabilities 2,546 2,459
Accounts payable 6,858 5,835
Short-term financial debt (less than 1 year) 227 214
Income taxes payable 75 63
Short-term provisions 105 100
Other creditors and other current liabilities 1,536 1,221
Current liabilities 8,801 7,433

Total Liabilities and Equity 14,458 12,730

Consolidated cash flow statement

(in millions of euro) June 30, 2010 June 30, 2009 2009
Cash flows from operations
Net income 222 172 417
Adjustment for non-cash income and expenses:
Income taxes 89 59 146
Cost of net financial debt 34 25 61
Capital (gains) losses on disposal (before tax) (1) (4) (10)
Depreciation, amortization and impairment on property and equipment and intangible assets 70 81 150
Non-cash expenses on stock options and similar items 15 12 24
Other non-cash income and expenses 3 5 11
Equity in net income of associates – (1) (4)

Dividends received from equity accounted investments 11 6 9
Taxes paid (103) (86) (157)
Interest paid (36) (51) (75)
Interest received 7 10 16
Change in working capital requirements (1) (266) (495) 59
Net cash flows provided by (used in) operating activities (I) 45 (267) 647
Cash flows from investment operations
Purchases of property and equipment and intangible assets (35) (33) (74)
Proceeds from sale of property and equipment and intangible assets 1 – 10
Proceeds from sale of investments and other financial assets, net (5) 3 10
Acquisition of subsidiaries (48) (70) (298)
Divestment of subsidiaries 1 – 1
Net cash flows provided by (used in) investment operations (II) (86) (100) (351)
Cash flows from financing operations
Capital Increase – – –
Dividends paid to parent company shareholders – – (107)
Dividends paid to minority shareholders of subsidiaries (14) (15) (26)
Cash received on new borrowings 13 734 744
Reimbursement of borrowings (59) (115) (108)
Net (purchases)/sales of treasury shares and equity warrants (249) 1 5
Cash received on hedging transactions – – –
Net cash flows provided by (used in) financing operations (III) (309) 605 508
Impact of exchange rate fluctuations (IV) 173 34 (94)
Net change in consolidated cash flows (I + II + III + IV) (177) 272 710
Cash and cash equivalents as of January 1, 1,580 867 867
Bank overdrafts as of January 1, (33) (30) (30)
Net cash and cash equivalents at beginning of period 1,547 837 837
Cash and cash equivalents at end of period 1,418 1,162 1,580
Bank overdrafts at end of period (48) (53) (33)
Net cash and cash equivalents at end of period 1,370 1,109 1,547
Net change in cash and cash equivalents (177) 272 710
(1) Breakdown of change in working capital requirements
Change in inventory and costs billable to clients (73) 31 29
Change in accounts receivable and other receivables (458) 729 160
Change in accounts payable, other creditors and provisions 265 (1,255) (130)
Variation in working capital requirements (266) (495) 59

Statement of changes in consolidated shareholders` equity

Number of outstanding shares (in millions of euros) Capital stock Additional paid-in capital Reserves and retained earnings Translation reserve Fair-value reserve Equity attributable to holders of the parent company Non-Controlling Interest (Minority interests) Total Equity

178,854,301 January 1, 2009 78 2,553 (105) (315) 109 2,320 30 2,350
Net income for the period 167 167 5 172
Other comprehensive income
Valuation of available-for-sale investments at fair value 4 4 4
Actuarial gains and losses on defined benefit plans (11) (11) (11)
Translation of foreign operations (14) (14) 2 (12)
Total other comprehensive income – – (11) (14) 4 (21) 2 (19)
Total comprehensive income for the period – – 156 (14) 4 146 7 153

Equity component of OCEANE 2014 49 49 49
Dividends (107) (107) (15) (122)
Share-based compensation 12 12 12
Additional interest on Oranes (3) (3) (3)
Effect of changes in scope of consolidation and of commitments to purchase minority interests – 3 3
72,910 Purchases/sales of treasury shares 1 1 1
178,927, 211 June 30, 2009 78 2,553 3 (329) 113 2,418 25 2,443

Number of outstanding shares (in millions of euros) Capital stock Additional paid-in capital Reserves and retained earnings Translation reserve Fair-value reserve Equity attributable to holders of the parent company Non-Controlling Interests (Minority interests) Total Equity

187,168,768 January 1, 2010 79 2,600 390 (377) 121 2,813 25 2,838
Net income 213 213 9 222
Other comprehensive income
Valuation of available-for-sale investments at fair value (1) (1) (1)
Actuarial gains and losses on defined benefit plans (17) (17) (17)
Translation of foreign operations 422 422 9 431
Total other comprehensive income – – (17) 422 (1) 404 9 413
Total comprehensive income for the period – – 196 422 (1) 617 18 635

Dividends paid (107) (107) (14) (121)
Share-based compensation 19 19 19
Additional interest on Oranes (3) (3) (3)
Effect of changes in scope of consolidation and of commitments to purchase minority interests – (8) (8)
(7,500,000) Cancellation of Publics Groupe SA shares (3) (215) (218) (218)
(807,764) Purchases/sales of treasury shares (31) (31) (31)
178,861,004 June 30, 2010 76 2,385 464 45 120 3,090 21 3,111

Earnings per share calculation details

Earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of earnings per share
Net income attributable to equity holders of the parent a 213 167
Impact of dilutive instruments:
– Savings in financial expenses related to the conversion of debt instruments, net of tax (1) 13 2
Net income attributable to equity holders of the parent – diluted b 226 169
Number of shares used for the calculation of earnings per share
Average number of shares composing the company`s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the calculation c 204,545,563 200,760,562
Impact of dilutive instruments: (2)
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 –
– Shares resulting from the conversion of convertible bonds (1) 28,450,700 4,455,073
Number of shares – diluted d 237,073,116 206,261,458
(en euro)
Net earnings per share a/c 1.04 0.83

Net earnings per share – diluted b/d 0.95 0.82

(1)In 2010 and 2009, both Oceane 2018 and Oceane 2014 were taken into account
for the calculations (the Oceane 2014, issued in June 2009, was only included
for one month for the first semester 2009).

(2)Only stock-options and equity warrants with a dilutive effect (whose exercise
price is lower than the average share price for the period) are taken into
consideration.

Headline earnings per share and diluted earnings per share

(In millions of euro except for shares) June 30, 2010 June 30, 2009
Net income used for the calculation of headline earnings per share (1)
Net income attributable to equity holders of the parent 213 167
Items excluded:
– Amortization of intangibles arising on acquisition, net of tax 10 9
– Impairment, net of tax – 16
– Deferred tax asset linked to Oceane 2014 (2) – (11)
Headline income attributable to equity holders of the parent e 223 181
Impact of dilutive instruments:
– Savings in financial expenses related to the conversion of debt instruments, net of tax 13 2
Adjusted net income attributable to equity holders of the parent – diluted f 236 183

Number of shares used for the calculation of earnings per share
Average number of shares composing the company`s share capital 195,469,852 196,020,983
Treasury shares to be deducted (average for the year) (11,231,966) (17,130,227)
Shares to be issued to redeem the Oranes 20,307,677 21,869,806
Average number of shares used for the calculation c 204,545,563 200,760,562
Impact of dilutive instruments:
– Free shares and dilutive stock options 3,904,161 1,045,823
– Equity warrants (BSA) 172,692 –
– Shares resulting from the conversion of convertible bonds 28,450,700 4,455,073
Number of shares – diluted d 237,073,116 206,261,458
(in euro)
Headline earnings per share (1) e/c 1.09 0.90
Headline earnings per share – diluted (1) f/d 1.00 0.89

(1)Earnings per share before Amortization of intangibles from acquisitions,
impairment and deferred tax assets linked to equity component of Oceane 2014.

(2)Effect of deferred tax asset recognized against deferred tax liabilities
linked to equity component of Oceane 2014 recorded as equity.

PUBLICIS GROUPE CONTACTS
Peggy Nahmany, Corporate Communication: + 33 (0)1 44 43 72 83
peggy.nahmany@publicisgroupe.com
or
Martine Hue, Investor Relations: + 33 (0)1 44 43 65 00
martine.hue@publicisgroupe.com

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

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July 30, 2010 By Leave a Comment

* Confirmed recovery
* Increased net profit
* Strong growth in bookings

PARIS–(Business Wire)–
Regulatory News:

The Board of Directors of Cap Gemini S.A. (Paris:CAP), chaired by Serge Kampf,
convened in Paris on July 28, 2010 to examine and approve the accounts of the
Capgemini group for the first half of 2010. The key figures are as follows:

(in millions of euros) H1 2009 H2 2009 H1 2010 Change vs. Change vs.

H1 2009
H2 2009
Revenues 4,376 3,995 4,211 -3.8% +5.4%
Operating margin (1) 287 308 245
as a % of revenues 6.6% 7.7% 5.8% -0.8 point -1.9 points
Operating profit (2) 167 166 200 +19.8% +20.5%
Group share net profit 78 100 101 +29.5% +1.0%
as a % of revenues 1.8% 2.5% 2.4% +0.6 point -0.1 point
Net cash and cash equivalents at 576 1 269 809 +233 -460

the end of the half-year

Although the impact of the global economic crisis on demand for IT services has
not been entirely erased, the stabilization of the main markets in which the
Group operates is now established and is reflected by steadily improving
activity levels. 2010 first-half revenues fell 3.8% compared to the first half
of 2009 (and even 6.1% like-for-like, i.e. at constant Group structure and
exchange rates) but increased 5.4% (1.8% like-for-like) on the previous
half-year. In the 2nd quarter alone, revenues (€2,159 million) increased 5.2%
(2.0% like-for-like) on the previous quarter.

Booking volumes also confirmed this positive trend, rising 14% like-for-like on
the first half of 2009 (and even 32% in the 2nd quarter alone). Outsourcing
Services recorded the greatest increase in bookings (+37%), thanks to the early
renewal or extension of several major contracts. Bookings for the three other
businesses (Consulting Services, Technology Services and Local Professional
Services) increased 4% for the half-year, accelerating significantly in the 2nd
quarter (+13%). The book-to-bill ratio for these three businesses was 1.17 for
the half-year and 1.28 for the 2nd quarter alone.

Confirming their good match with its clients` requirements, the five new service
offerings(3) launched by the Group at the end of 2009 and the beginning of 2010,
represented 36% of total bookings recorded in the first half of the year.

The operating margin (5.8%) is down on the first six months of 2009 (6.6%), but
operating profit (€200 million) surged nearly 20% on the first half of 2009,
which was affected by particularly high restructuring costs.

After deducting a net financial expense of €38 million and an income tax expense
of €61 million, the Group profit for the period (€101 million) is up nearly 30%
on the first-half of 2009.

Consolidated net cash and cash equivalents total €809 million at June 30, 2010,
down some €460 million on December 31, 2009: this difference is mainly due to
increased working capital requirements – usual at this time of year – the
payment of the dividend (€0.80 per share, or €122 million in total) and the
financing of several small acquisitions for a total net amount of €90 million
(mainly IBX in Sweden and Strategic Systems Solutions, a company dedicated to
the financial services sector and in which the Group has held a minority
interest since the acquisition of Kanbay).

Outlook:

After a particularly tough 2009, the Group prepared itself to face an
environment which remained difficult at the beginning of the year, but which it
expected to improve steadily. First-half results, both in terms of growth and
profitability, confirmed the appropriateness of decisions taken, while the
dynamism of bookings validated the assumption that this improvement will
continue in the second-half, despite ongoing macro-economic concerns and
significant stock market volatility. In this context, Capgemini Group forecasts
revenue growth in the second-half of 2010 of 3 to 5%, like-for-like, on the
second-half of 2009. For the year as a whole, the operating margin rate should
exceed 6.5%.

Paul Hermelin, CEO of the Capgemini group, confirms that “Strengthened by this
above-expectations performance and the marked increase in bookings, the Group
will enjoy a return to growth in the second half of the year. We have now
relaunched a dynamic recruitment policy and will focus particularly on our five
global service lines, in order to satisfy the new expectations of our clients.”

Appendix

Operations by major region:

* France – which remains the Group`s leading “main region” – reported revenues
down 2.7% on the first half of 2009, but up 4.4% on the previous half-year
(second half of 2009), with the operating margin rate almost unchanged at 5.1%.
* Revenues in the United Kingdom/Ireland region dropped by 5.0%, essentially due
to the renegotiation of the terms of a major contract entered into several years
previously. The operating margin rate (7.3%), remains, however, one of the best
in the Group.
* In North America, revenues for the first six months recorded – due to the
termination (scheduled and announced) of a large outsourcing services contract -
a drop of 3.9%. Sogeti (Local Professional Services), enjoyed a marked
improvement, while Technology Services in the financial services sector
experienced a veritable bounce (+30%). The operating margin rate decreased 1
point to 4.3%.
* Benelux, where the crisis was the most acute, recorded a slump in revenues of
12.2% compared to the first half of 2009 but only 2.7% compared to the second
half of 2009, thanks to the stabilisation of operations and signs of recovery
for Technology Services. The restructuring carried out in 2009 enabled an
increase in the operating margin rate of 1.5 points to 9.1%, while operating
profit nearly tripled on the first-half of 2009, increasing from €18 to €51
million.
* The other regions reported revenue growth of 4.0%, with an operating margin
rate of 7.7%.

Operations by business:

* Technology Services recorded a drop in revenues (like-for-like) in line with
that reported by the Group. This was principally due to the pressure on prices
which heavily marked the second half of 2009 and has since decreased.
Nevertheless, activity levels increased by 2.9% between the 1st and 2nd quarters
of the year, announcing a significant improvement for the fiscal year. The
operating margin rate (5.5%) is comparable to that of the Group.
* The drop in Outsourcing Services revenues(-6.3%) can be fully explained by the
reduction in the volume of business under the two contracts referred to above,
while the remaining operations (which were particularly dynamic in North
America) recorded growth of 4.0%. Further, revenues also increased by 2.9%
between the 1st and 2nd quarters of 2010. Thanks to the increasing use of
offshore resources and strict control of costs, these operations maintained
their operating margin rate (6.7%) at first-half 2009 levels.
* Local Professional Services (Sogeti) achieved the Group`s best performance
with a return in the 2nd quarter 2010 to 2nd quarter 2009 activity levels and
reported a drop in revenues finally limited to 4.1% in the half-year and an
operating margin rate down more than 2 points on the first half of 2009.
* As expected, Consulting Services is the business which recorded the greatest
contraction in operations (-9.3%), however, extremely rigorous cost management
enabled it to see an improvement in its margin rate to 11.1%.

Headcount:

On June 30, 2010 the Group`s total headcount was 95,586, an increase of 6%
compared to December 31, 2009, thanks to an extremely dynamic recruitment policy
which brought over 13,000 employees into the Group in the half-year (5,000
employees in the 1st quarter and 8,000 in the 2nd quarter). With 62,717
employees, the Group`s headcount in its traditional countries increased slightly
on December 31, 2009. The strongest growth concerned offshore employees:
principally located in India (26,000 employees at June 30), but also in other
Asian countries, Eastern Europe, Latin America and North Africa, offshore staff
comprises 32,869 employees and represents 34.4% of the Group`s total headcount.

________________________________________________

(1) Operating margin, a key Group performance indicator, is defined as the
difference between revenues and operating costs, these being equal to the cost
of services rendered (expenses incurred during project delivery) plus selling
and general and administrative expenses.

(2) Group operating profit incorporates the charges associated with shares or
options granted to a large number of employees, as well as other non-recurring
income and expenses such as goodwill impairment, capital gains or losses on
disposals, restructuring costs, acquisition and integration costs of recently
acquired companies, as well as the impacts of the curtailment and/or settlement
of defined benefit pension plans.

(3) Capgemini created five global service lines focusing particularly on the
most promising market segments: data management (Business Information
Management) and applications development and maintenance (Application Lifecycle
Services) – two offerings launched at the end of last year -; applications
testing (Testing Services), smart meters and networks (Smart Energy Services),
virtualization and cloud computing (Infostructure Transformation Services)
launched in the 1st quarter of 2010.

Cap Gemini S.A.
Press relations:
Christel Lerouge, +33 1 47 54 50 76
or
Investor relations:
Manuel Chaves d`Oliveira, +33 1 47 54 50 87

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-BASF’s Q2 profit almost doubles on industrial sales

July 30, 2010 By Leave a Comment

* Q2 adj EBIT up 94 pct at 2.2 bln eur

* Confirms FY outlook for adj EBIT to see marked gains

* Still aims to increase dividend for 2010

(Adds details, background)

FRANKFURT, July 29 (Reuters) – German chemicals maker BASF (BASF.DE) surpassed analysts’ earnings expectations for the sixth straight quarter, bolstered by a rebound in the car and electronics industries.

The strong results add to evidence global chemical makers are out of the woods.

The world’s largest chemicals supplier by sales said on Thursday that second-quarter earnings before interest and tax (EBIT), adjusted for one-off items, almost doubled to 2.2 billion euros ($2.9 billion).

That surpassed the 2.03 billion euros expected on average in a Reuters poll of analysts as BASF continued to recover from an economic crisis. [ID:nLDE63P246]

BASF reiterated that adjusted operating profit was set to improve significantly this year compared with crisis-fraught 2009, when its operating margin hit an eight-year low.

It also confirmed its goal to increase the annual dividend.

The dominance of massive overhead costs in the industry means rising sales — 30 percent in the case of BASF’s second quarter — translate into a much stronger profit rebound as companies use capacity left idle during the slump.

Signs are rife that a rebounding global economy continues to fuel a recovery in the chemical sector. DuPont (DD.N), the third-largest U.S. chemical maker, on Tuesday forecast 2010 earnings well above expectations. [ID:nN26201739]

The Netherlands’ AkzoNobel (AKZO.AS), the world’s largest paint maker, hit its 2011 margin target early and reporting better-than-expected quarterly results last week. [ID:nLDE66M02Z] (Reporting by Ludwig Burger)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Clariant AG: Clariant further improves profitability based on better demand and reduced cost base

July 30, 2010 By Leave a Comment

Clariant AG / Clariant further improves profitability based on better demand and reduced
cost base processed and transmitted by Hugin AS. The issuer is solely responsible for
the content of this announcement.

*

Q2 sales up 20% in local currencies and 18% in CHF as global economic activity continued
to rebound year on year

*

Q2 operating income before exceptional items rose to CHF 211 million compared to CHF 69
million a year ago and CHF 183 million in the first quarter, mainly driven by higher
sales volumes

*

Q2 operating income margin before exceptional items reached 11.1% compared to 4.3% a
year ago

*

Q2 cash flow from operations amounted to CHF 33 million from CHF 184 million in the
previous year given a volume-related temporary increase in inventories and trade
receivables

*

Outlook: Against the backdrop of an anticipated softening of the global economy,
Clariant expects lower sales growth in the second half of the year with demand remaining
solid. Clariant guides for sales growth in the high-single digit percentage range and an
operating margin before exceptionals for the full-year above 8%.

CEO Hariolf Kottmann commented: “In the first half of 2010 the economic tailwind
leveraged the results of our restructuring program. Consequently we recorded a good
operating income before exceptionals and a strong cash flow. We maintained our good cost
position and further reduced our debt. For the second half of the year we predict a
softening in demand compared to the first half as a result of a weaker economy and the
traditional seasonal effects of our businesses. Until the end of the year we will
continue with our focus on restructuring with the expected impact of restructuring costs
on our net income. All in all we expect a satisfactory year 2010 for our company. ”

Key Financial Data

Second quarter First half year
in CHF million 2010 2009 % CHF % LC 2010 2009 % CHF % LC
Sales 1’894 1’609 18 20 3’711 3’213 15 18
EBITDA before exceptional items 264 125 111 121 499 168 197 206
– margin 13.9% 7.8% 13.4% 5.2%
EBIT before exceptional items 211 69 206 218 394 56 604 626
– margin 11.1% 4.3% 10.6% 1.7%
EBIT 124 0 – – 198 -68 – –
Net income / loss 25 -61 – – 35 -152 – –
Operating cash flow 33 184 192 340
Number of employees 17’2681 17’5362

1 as of 30 June 2010 2 as of 31 December 2009

Clariant Q2, 2010 Performance

Muttenz, July 29, 2010

-Clariant, a world leader in specialty chemicals, today announced sales of CHF 1.894
billion in the second quarter 2010, compared to CHF 1.609 billion in the previous year.
Sales increased 18% in Swiss Francs and 20% in local currency.

Volumes were up 20% over an extremely weak second quarter 2009, but remained
significantly below pre-crisis levels. On the back of a broad economic recovery,
Clariant reported sales growth across all businesses and regions. The Business Units
Pigments, Additives, Leather and Masterbatches benefited the most from the improved
economic environment and grew above group average.

Against the backdrop of the depreciation of the Euro against the USD and an increased
competitiveness, demand in Europe developed better than expected compared to the low
basis year on year, which resulted in a strong 22% sales growth for Clariant. Demand in
the regions Asia, Latin and North America increased as well, favorably affecting the
company’s sales volumes.

Clariant significantly improved the gross margin to 28.9% from 24.8% year on year, based
on good capacity utilization. Sequentially, the company increased sales prices by 1% in
order to respond to a 4% uptake in raw material costs. However these price increases
have not been sufficient yet to fully compensate for the feedstock markup and will be
intensified in the coming months in particular as raw material costs are predicted to
further increase.

Despite the negative margin squeeze Clariant managed to keep the gross margin stable
sequentially also due to a favorable development of exchange rates and higher volumes.

As part of its Global Asset Network Optimization (GANO) efforts Clariant continued to
improve the structure of its production facilities and decided to relocate the Pigments
site in Tianjin (PR China) – as part of the consolidation of the Pigments activities in
China – and to close Pigments production in Onsan (South Korea). Both sites will have
stopped their operations in 2010/11. At the same time the investment in a new
ethoxylation plant in Dayabay (PR China) is proceeding as planned. The site will go on
stream in early 2011.

As a result of the ongoing focus on cost reduction, SG&A costs decreased to 16.3% of
sales, compared to 18.6% a year ago. In absolute terms, SG&A costs slightly increased to
CHF 309 million, from CHF 299 million year on year, due to one time costs resulting from
the restructuring projects and necessary IT upgrades. Personnel costs further decreased.

Consequently the operating income (EBIT) before exceptional items increased to CHF 211
million, compared to CHF 69 million a year ago and CHF 183 million in the first quarter
of 2010. The EBIT margin before exceptional items improved to 11.1% from 4.3% a year
ago.

Restructuring and impairment costs amounted to CHF 87 million. However, the favorable
development of the operating result could more than offset the restructuring costs.
Hence Clariant reported a net profit of CHF 25 million for the quarter, compared to a
net loss of CHF 61 million a year ago.

As a consequence of the pick-up in business activity, inventories and trade receivables
were significantly higher than in the second quarter of 2009 that had marked the peak of
the economic crisis. Nevertheless cash flow from operations remained positive at CHF 33
million compared to CHF 184 million in the second quarter of previous year based on
decisive net working capital management and good EBIT generation.

The company’s cash position – including an investment of CHF 382 million in short-term
deposits – remained strong at CHF 1’221 million.

Clariant continued to reduce its net debt to CHF 379 million from CHF 545 million at the
end of 2009. The gearing – net debt divided by equity – improved to 20%, compared to 29%
by year-end 2009 and remained stable compared to the end of the first quarter 2010.

Outlook

Although demand will remain solid in the remainder of the year, Clariant expects a
weaker second half-year as the global economy is expected to soften and the normal
seasonality of its businesses returns in 2010. In addition, raw material costs are
expected to rise further.

In the second half-year, Clariant will continue to focus on generating cash, decreasing
costs and reducing complexity, which will result in an additional reduction of job
positions. The ongoing restructuring program will be finalized by the end of the year
and the company will be managed for profitable growth as of 2011. However some of the
measures – in particular related to the GANO activities – will not be completely
implemented before 2013.

Based on the good results in the first half of the year and the continuing restructuring
efforts, Clariant aims for a high single digit sales growth in local currency and an
EBIT margin before exceptionals of above 8% for the full year. The cash flow from
operations will remain strong.

Clariant confirms its target of a sustainable, above-industry-average return on invested
capital (ROIC) by the end of 2010.

Contacts

Media Relations

Stefanie Nehlsen Phone: +41 61 469 67 42
E-Mail: stefanie.nehlsen@clariant.com
Arnd Wagner Phone: +41 61 469 61 58
E-Mail: arnd.wagner@clariant.com

Investor Relations

Ulrich Steiner Phone: +41 61 469 67 45
E-Mail: ulrich.steiner@clariant.com

Clariant – Exactly your chemistry.

Clariant is a global leader in the field of specialty chemicals. Strong business
relationships, commitment to outstanding service and wide-ranging application know-how
make Clariant a preferred partner for its customers.

Clariant, which is represented on five continents with over 100 group companies, employs
around 17,300 people. Head-quartered in Muttenz near Basel, Switzerland, it generated
sales of CHF 6.6 billion in 2009. Clariant is organized into ten Business Units:
Additives; Detergents & Intermediates; Emulsions; Industrial & Consumer Specialties;
Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; and
Textile Chemicals.

Clariant is committed to sustainable growth, which is derived from its own innovative
strength. Clariant’s world-class products and services play a key role in its customers’
manufacturing processes and add value to their end products. The company’s success is
based on the know-how of its people and their ability to identify new customer needs at
an early stage and to work together with customers to develop innovative, efficient
solutions.

www.clariant.com

HUG#1434582

Financial Review Q2 2010 http://hugin.info/100166/R/1434582/380143.pdf
Media Release Deutsch http://hugin.info/100166/R/1434582/380142.pdf
Media Release English http://hugin.info/100166/R/1434582/380141.pdf

— End of Message —

Clariant AG
Rothausstrasse 61 Muttenz 1 Switzerland

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Dassault Systèmes Reports Second Quarter Results with Strong EPS Growth

July 30, 2010 By Leave a Comment

http://www.businesswire.com/news/home/20100728007198/en

PARIS–(Business Wire)–
Regulatory News:

Dassault Systèmes (DS) (Paris:DSY) (Euronext Paris: #13065, DSY.PA) reports IFRS
unaudited financial results for the second quarter and six months ended June 30,
2010. These results were reviewed by the Company`s Board of Directors on July
27, 2010.

Second Quarter Summary Highlights

* 2010 second quarter earnings and operating margin above DS` objectives
* Net operating cash flow of €132 million
* EPS growth of 82% reaching €0.40 (IFRS) and 57% reaching €0.58 (Non-IFRS)
* IBM PLM integration well on track
* Expanding into new addressable market with Exalead acquisition
* DS upgrades 2010 objectives to reflect recent acquisitions, currency
fluctuations and Q2 overachievement

Second Quarter Financial Summary

In millions of Euros, except per share data IFRS Non-IFRS
Change Change in Change Change in
cc* cc*
Q2 Total Revenue 385.6 24% 18% 391.9 26% 20%
Q2 Software Revenue 346.4 28% 22% 352.7 30% 24%
Q2 EPS 0.40 82% 0.58 57%
Q2 Operating Margin 18.7% 27.9%

*In constant currencies.

“Dassault Systèmes had a very solid second quarter, with sales above the high
end of our revenue target excluding any currency benefits, and earnings and
operating margin results significantly above our objectives, thanks in large
measure to execution at both the sales and operational levels. In the Mainstream
3D market, SolidWorks delivered strong results with new licenses up 20%, showing
an encouraging business trend in the SMB market” commented Bernard Charlès,
Dassault Systèmes President and Chief Executive Officer.

“On top of the smooth integration of IBM PLM, the second quarter was a very
dynamic period with new strategic customer partnerships with leading, global
companies including Michelin and Gap Inc., and more on the way.We added a new
addressable market in search-based applications with the Exalead acquisition,
expanded V6 PLM with a new release and with the Geensoft acquisition to advance
in design and simulation for smart products.

“Looking forward, we are focused on the significant opportunity ahead of us to
leverage both our direct and indirect sales resources to expand our presence
across the eleven industries Dassault Systèmes serves.”

DS completed the acquisition of the IBM PLM operations on March 31, 2010 and
these operations were merged into the Company`s operations within its PLM
business segment for the three-month period commencing April 1, 2010. Due to the
deep integration of former IBM PLM employees into the Company`s operations,
involving many changes in territories and responsibilities, it is not possible
to track the IBM PLM revenue and profit since the acquisition date. As
previously disclosed, the IBM PLM share of DS software revenue was estimated at
approximately €53 million in the second quarter of 2009. The IBM PLM acquisition
was a significant contributor to growth in direct sales and sales related
headcount and in turn to revenue, expenses and earnings during the 2010 Second
Quarter and First Half in comparison to the respective 2009 periods.

Second Quarter 2010 Financial Review

In millions of Euros IFRS Non-IFRS
Q2 2010 Q2 2009 Change in Q2 2010 Q2 2009 Change in
cc* cc*
Total Revenue 385.6 310.9 18% 391.9 311.2 20%
Software Revenue 346.4 271.3 22% 352.7 271.6 24%
Services and other Revenue 39.2 39.6 (6%) 39.2 39.6 (6%)

PLM software Revenue 268.4 206.5 24% 274.7 206.8 27%
Mainstream 3D software Revenue 78.0 64.8 14% 78.0 64.8 14%

Americas 116.2 96.5 12% 117.2 96.6 13%
Europe 173.7 144.2 20% 175.1 144.2 21%
Asia 95.7 70.2 22% 99.6 70.4 27%

*In constant currencies.

* In constant currencies, IFRS total revenue increased 18% (24.0% as reported)
and non-IFRS total revenue increased 20% (25.9% as reported) on in-line new
licenses revenue performance and higher than anticipated growth in recurring
software revenue.
* IFRS new license revenue increased 23.1% and 17% in constant currencies.
Second quarter new licenses revenue and growth comparisons reflected some delays
in transaction closings in the Company`s PLM business segment, as anticipated in
relation to its integration of the IBM PLM organization.
* IFRS recurring software revenue increased 30.0% and 24% in constant
currencies. Non-IFRS recurring software revenue increased 33.0% and 27% in
constant currencies. The growth reflected a further improvement in subscription
revenue trends as renewal rates are back to historical levels across the
Company. In addition, second quarter recurring software results also included
some one-time, catch-up payments by customers for maintenance renewals.

* Representing approximately 10% of total revenue, service and other revenue,
which normally lag the improvement in new activity, decreased 6% (non-IFRS) in
constant currencies, compared to a decrease of 14% in the 2010 first quarter.
The non-IFRS service and other revenue gross margin was 9.2%, representing a
significant sequential improvement.
* IFRS PLM software revenue increased 30.0% and 24% in constant currencies and
non-IFRS PLM software revenue increased 32.8% and 27% in constant currencies.
* Mainstream 3D (IFRS and non-IFRS) software revenue increased 20.4% and 14% in
constant currencies. New seats licensed increased 20% to 9,770 and the average
SolidWorks seat price increased 3% in constant currencies.
* The Company`s IFRS operating margin expanded 510 basis points. The non-IFRS
operating margin increased 600 basis points to reach 27.9% from 21.9% in the
2009 second quarter. The operating margin came in above the Company`s objective
principally reflecting higher than anticipated revenue results, higher cost
control and a one-time reclassification caused by a taxation change in France.
* IFRS earnings per diluted share increased 82% to €0.40 up from €0.22 in the
2009 second quarter. Non-IFRS earnings per diluted share increased 57% to €0.58
compared to €0.37 in the year-ago period, principally due to strong revenue
growth and operating margin expansion, offset in part by a higher non-IFRS
effective income tax rate.

2010 First Half Financial Summary

In millions of Euros, except per share data IFRS Non-IFRS
Change Change in Change Change in
cc* cc*
YTD 2010 Total Revenue 697.5 12% 10% 703.9 13% 11%
YTD 2010 Software Revenue 626.1 15% 13% 632.5 16% 14%
YTD 2010 EPS 0.72 57% 1.01 36%
YTD 2010 Operating Margin 17.4% 25.4%

*In constant currencies.

In millions of Euros IFRS Non-IFRS
YTD 2010 YTD 2009 Change in YTD 2010 YTD 2009 Change in
cc* cc*
Total Revenue 697.5 620.6 10% 703.9 621.9 11%
Software Revenue 626.1 543.1 13% 632.5 544.4 14%
Services and other Revenue 71.4 77.5 (10%) 71.4 77.5 (10%)

PLM software Revenue 477.2 407.2 15% 483.6 408.5 16%
Mainstream 3D software Revenue 148.9 135.9 7% 148.9 135.9 7%

Americas 207.9 193.9 7% 209.0 194.4 7%
Europe 314.6 281.8 11% 316.0 281.9 12%
Asia 175.0 144.9 12% 178.9 145.6 14%

*In constant currencies.

* In constant currencies, IFRS total revenue increased 10% (12.4% as reported)
and non-IFRS total revenue increased 11% (13.2% as reported).
* By geographic region and in constant currencies, IFRS revenue in Europe
increased 11% (increased 11.6% as reported), the Americas increased 7%
(increased 7.2% as reported) and Asia increased 12% (increased 20.8% as
reported).
* IFRS PLM software revenue increased 17.2% and 15% in constant currencies and
non-IFRS PLM software revenue increased 18.4% and 16% in constant currencies.
* Mainstream 3D (IFRS and non-IFRS) software revenue increased 9.6% and 7% in
constant currencies. New SolidWorks commercial seats licensed during the 2010
First Half increased 14% to 19,613 seats.
* IFRS recurring software revenue, comprised of periodic licenses and
maintenance revenue, increased 14.2% as reported and 12% in constant currencies.
Similarly, non-IFRS recurring software revenue increased 13% in constant
currencies to €470.7 million for the 2010 First Half compared to €407.8 million
in the prior year period.
* Diluted net income per share increased 56.5% principally reflecting an
increase in operating income of 47.1%. Non-IFRS net income per diluted share
increased 36.5% to €1.01 per share from €0.74 per share, principally reflecting
an increase in non-IFRS operating income of 39.0%.

Cash Flow and Other Financial Highlights

IFRS net operating cash flow was €132.3 million for the 2010 second quarter, up
from €81.0 million in the year-ago period. IFRS net operating cash flow was
€265.6 million for the first half ended June 30, 2010, compared to €177.3
million for the 2009 First Half. In the second quarter 2010, the Company
completed acquisitions totaling €144 million and paid cash dividends aggregating
€54.5 million.

The Company`s net financial position, representing cash and short-term
investments of €1.02 billion, net of long-term debt of €306.8 million, was
€714.1 million, compared to a net financial position of €858.0 million at
December 31, 2009.

Annual Shareholders` Meeting Approved Cash Dividend Payment

The Annual Shareholders` Meeting was held on May 27, 2010. At the meeting
shareholders approved for the fiscal year ended December 31, 2009 the payment of
an annual cash dividend equivalent to €0.46 per share, equal to the prior year.
The Company has consistently paid annual cash dividends since its initial public
offering in 1996. The cash dividend was paid on June 17, 2010.

Summary Business and Corporate Highlights

DS Outlined New Five-Year Financial Objectives at Capital Markets Day, June 15,
2010. DS publicly outlined its growth plan including targeting a 30% non-IFRS
margin and the five-year goal to more than double non-IFRS EPS in comparison to
2009.

Dassault Systèmes Acquired Exalead, a France-based company providing Search
Platforms and Search-Based Applications (SBA) for consumer and business users.
Every month, over 100 million people rely on Exalead for information search,
access and reporting, including people in companies like Sanofi-Aventis and
World Bank for business use, and Friendster, Lagardère Active and ViaMichelin
for contextual consumer search. Exalead provides the industry`s only platform
designed from the ground up to apply advanced semantic processing to Web-scale
data volumes and usage. Exalead brings unique scalability, agility and usability
to industries such as Banking, Retail, Publishing, Business Services, Life
Sciences and Consumer Services where easy access to information is essential.
The acquisition price was approximately €135 million.

DS Advances Systems Strategy with the Acquisition of Geensoft, a France-based
company. Geensoft provides embedded systems development tools and professional
services that help engineering teams in the aerospace, automotive, defense,
energy, industrial automation, medical and transportation industries to more
efficiently manage their engineering processes as well as design, verify and
validate their model-based embedded systems applications. With Geensoft, the
Company`s V6 portfolio is expanded by adding the capacity to model and generate
the entire vehicle control software system, allowing a validation loop by
connecting the physical equipment with the digital mock-up. The purchase price
was approximately €5.5 million.

The Company launched V6R2011, the latest release of its PLM 2.0 platform as part
of its Lifelike Experience strategy. The release includes new advances in
collaborative creation with 874 new features, additional collaborative
innovation enhancements, as well as an entirely new V6 Academia solution. It
includes CATIA advancements in systems functionality and content, such as
various automotive-focused Modelica libraries, as well as Lifelike Human and
Lifelike Conveyor, two new DELMIA production solutions for enterprise resource
modeling. SIMULIA V6R2011 delivers to designers the power of Abaqus technologies
for complex assemblies. 3DVIA Composer continues to extend its competitive
advantage in 3D lifelike technical publishing experience. V6R2011 also updates
Dassault Systèmes` PLM Express offer with new key attributes for the mid-market.
V6R2011 features new capabilities in collaborative innovation, extending the
depth of ready-to-use solutions in its eleven target industries, including
consumer product goods, fashion, high tech, aerospace & defense, and automotive.
These ENOVIA-based solutions deliver a strategic foundation for all communities
to participate in the product lifecycle online.

DS introduced Abaqus Release 6.10 from SIMULIA with New Multiphysics Technology.
In response to expanding industry demand for realistic simulation, the new
release delivers more than 100 customer-requested enhancements for modeling,
performance, usability, visualization, multiphysics, and core mechanics. Abaqus
6.10 introduces a new multiphysics capability for performing Computational Fluid
Dynamics (CFD) simulation.

DS Has Launched Open Online DraftSight Community. DS has made available
DraftSight.com, aimed at providing all computer-aided design (CAD) users access
to new services and products to unlock valuable data stored in billions of DWG
files. Building on Dassault Systèmes` vision of enabling social innovation, the
launch of this community comes as a direct result of customer demand and marks
the next step in bringing DWG file management and storage into an easy-to-use,
online, service-oriented environment.

Business Outlook

Thibault de Tersant, Senior Executive Vice President and CFO, commented, “The
quarter unfolded largely as we expected from a revenue perspective. We saw some
upside thanks to our recurring software revenue, which has reached a positive
inflection point somewhat earlier than we had estimated. Our customers are
moving back to their historical subscription renewal levels, confirming the
value our software brings to them.Our bottom-line performance was particularly
gratifying, with a non-IFRS operating margin of 28% and an EPS growth of 57%,
coming in above our objectives thanks principally to the continued positive
impact of our 2009 efficiency plan and our revenue performance.

“Looking ahead we are reconfirming our second half outlook and adding to it the
recently completed acquisitions, leading to an acceleration of revenue growth to
about 22% to 25% in constant currencies for the 2010 second half. Taking into
account the second quarter over-performance leads to an updated full year
non-IFRS total revenue growth objective of 16% to 18% in constant currencies.
Our objectives are consistent with our view of a gradual improvement in the
economic environment.

“With respect to our earnings and operating margin objectives, we are now
targeting non-IFRS EPS growth of 21% to 26% to reflect our continued focus on
driving efficiencies across the business and benefiting from the progress made
to date, and to take into account the currency evolution.”

The Company`s current objectives are the following:

* Third quarter 2010 non-IFRS total revenue objective of about €365 to €375
million, non-IFRS operating margin of about 25% to 26% and non-IFRS EPS of about
€0.52 to €0.56;
* 2010 non-IFRS revenue growth objective range of about 16% to 18% in constant
currencies; (€1.495 to €1.515 billion based upon the 2010 currency exchange rate
assumptions below from €1.455 to €1.475 billion previously);
* 2010 non-IFRS operating margin of about 26% to 27% from about 26%;
* 2010 non-IFRS EPS range of about €2.25 to €2.35, representing growth of about
21% to 26%; (previous range €2.19 to €2.28)
* Objectives are based upon exchange rate assumptions for the 2010 third quarter
of US$1.37 per €1.00 and JPY128 per €1.00 and a full year average of US$1.35
($1.40 previously) per €1.00 and JPY125 (JPY130 previously) per €1.00.

The Company`s objectives are prepared and communicated only on a non-IFRS basis
and are subject to the cautionary statement set forth below.

The non-IFRS objectives set forth above do not take into account the following
accounting elements and are estimated based upon the 2010 currency exchange
rates above: deferred revenue write-downs estimated at approximately €17 million
for 2010; share-based compensation expense estimated at approximately €21
million for 2010 and amortization of acquired intangibles estimated at
approximately €66 million for 2010. The above objectives do not include any
impact from other operating income and expense, net principally comprised of,
acquisition, integration and restructuring expenses. These estimates do not
include any new stock option or share grants, or any new acquisitions or
restructurings completed after July 29, 2010.

Webcast and Conference Call Information

Dassault Systèmes will host a webcast and a conference call today, Thursday,
July 29, 2010. Management will host a webcast at 9:30 AM London time/10:30 AM
Paris time and will then host the conference call at 9:00 AM New York time/2:00
PM London time/3:00 PM Paris time. The webcast and conference call will be
available via the Internet by accessing http://www.3ds.com/company/finance/.
Please go to the website at least fifteen minutes prior to the webcast or
conference call to register, download and install any necessary audio software.
The webcast and conference call will be archived for 30 days.

Additional investor information can be accessed at
http://www.3ds.com/company/finance/ or by calling Dassault Systèmes` Investor
Relations at 33.1.61.62.69.24.

Forward-looking Information

Statements herein that are not historical facts but express expectations or
objectives for the future, including but not limited to statements regarding the
Company`s non-IFRS financial performance objectives, are forward-looking
statements.

Such forward-looking statements are based on DS management’s current views and
assumptions and involve known and unknown risks and uncertainties. Actual
results or performances may differ materially from those in such statements due
to a range of factors. In preparing such forward-looking statements, the Company
has in particular assumed an average U.S. dollar to euro exchange rate of
US$1.35 per €1.00 and an average Japanese yen to euro exchange rate of JPY125 to
€1.00 for 2010; however, currency values fluctuate, and the Company`s results of
operations may be significantly affected by changes in exchange rates. The
Company has tried to factor in the potential impact of the current global
economic environment on its 2010 third quarter and full year objectives, but
conditions may not improve as the Company has anticipated or could worsen.
Further the Company has assumed that its increased responsibility for its direct
PLM sales, in particular resulting from the integration of the IBM PLM
acquisition which was completed on March 31, 2010, and the resulting commercial
and management challenges, will not cause it to incur substantial unanticipated
costs and inefficiencies. The Company`s actual results or performance may also
be materially negatively affected by the current global economic crisis,
difficulties or adverse changes affecting its partners or its relationships with
its partners, including the Company`s longstanding, strategic partner, IBM; new
product developments and technological changes; errors or defects in its
products; growth in market share by its competitors; and the realization of any
risks related to the integration of IBM PLM within DS and of any newly acquired
company and internal reorganizations. Unfavorable changes in any of the above or
other factors described in the Company`s regulatory reports, including the
Document de référence, as filed with the French “Autorité des marchés
financiers” (AMF) on April 1, 2010, could materially affect the Company`s
financial position or results of operations.

Non-IFRS Financial Information

Readers are cautioned that the supplemental non-IFRS (previously referred to as
“adjusted IFRS”) information presented in this press release is 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. Further specific limitations for individual non-IFRS measures, and
the reasons for presenting non-IFRS financial information, are set forth in the
Company`s annual report for the year ended December 31, 2009 included in the
Company`s 2009 Document de référence filed with the AMF on April 1, 2010.

In the tables accompanying this press release the Company sets forth its
supplemental non-IFRS figures for revenue, operating income, operating margin,
net income and diluted earnings per share, which exclude the effect of adjusting
the carrying value of acquired companies` deferred revenue, stock-based
compensation expense, the expenses for the amortization of acquired intangible
assets and other income and expense, net (in each case, as explained
respectively in the Company`s 2009 Document de référence filed with the AMF on
April 1, 2010) and the income tax effect of the non-IFRS adjustments. The tables
also set forth the most comparable IFRS financial measure and reconciliations of
this information with non-IFRS information.

Information in Constant Currencies

When the Company believes it would be helpful for understanding trends in its
business, the Company provides percentage increases or decreases in its revenue
(in both IFRS as well as non-IFRS) to eliminate the effect of changes in
currency values, particularly the U.S. dollar and the Japanese yen, relative to
the euro. When trend information is expressed herein “in constant currencies”,
the results of the “current” period have first been recalculated using the
average exchange rates of the comparable period in the preceding year, and then
compared with the results of the comparable period in the preceding year.

About Dassault Systèmes

As a world leader in 3D and Product Lifecycle Management (PLM) solutions,
Dassault Systèmes brings value to more than 115,000 customers in 80 countries. A
pioneer in the 3D software market since 1981, Dassault Systèmes develops and
markets PLM application software and services that support industrial processes
and provide a 3D vision of the entire lifecycle of products from conception to
maintenance to recycling. The Dassault Systèmes portfolio consists of CATIA for
virtual product design – SolidWorks 3D for Professionals – DELMIA for virtual
production – SIMULIA for realistic simulation – ENOVIA for global collaborative
lifecycle management, and 3DVIA for online 3D lifelike experiences. Dassault
Systèmes` shares are listed on Euronext Paris (#13065, DSY.PA) and Dassault
Systèmes` ADRs may be traded on the US Over-The-Counter (OTC) market (DASTY).
For more information, visit http://www.3ds.com

CATIA, DELMIA, ENOVIA, SIMULIA, SolidWorks and 3DVIA are registered trademarks
of Dassault Systèmes or its subsidiaries in the US and/or other countries.

TABLE OF CONTENTS

Non-IFRS key figures

Condensed consolidated statements of income

Condensed consolidated balance sheets

Condensed consolidated cash flow statements

IFRS – non-IFRS reconciliation

DASSAULT SYSTEMES
NON-IFRS KEY FIGURES
(unaudited; in millions of Euros, except per share data, headcount and exchange
rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of
acquired companies` deferred revenue, stock-based compensation expense,
amortization of acquired intangible assets, and other operating income and
expense, net.

Comparable IFRS financial information and a reconciliation of the IFRS and
non-IFRS measures are set forth in the proceeding tables.

Three months ended Six months ended
June 30, 2010 June 30, 2009 Change Change in June 30, 2010 June 30, 2009 Change Change in
cc* cc*
Non-IFRS Revenue € 391.9 € 311.2 26% 20% € 703.9 € 621.9 13% 11%

Non-IFRS Revenue breakdown by activity
Software revenue 352.7 271.6 30% 24% 632.5 544.4 16% 14%
of which new licenses revenue 85.4 69.4 23% 17% 161.5 134.0 21% 18%
of which periodic licenses, maintenance and 267.3 202.2 32% 26% 471.0 410.4 15% 12%
product development revenue
Services and other revenue 39.2 39.6 (1%) (6%) 71.4 77.5 (8%) (10%)

Recurring software revenue 267.0 200.8 33% 27% 470.7 407.8 15% 13%

Non-IFRS software revenue breakdown by product line
PLM software revenue 274.7 206.8 33% 27% 483.6 408.5 18% 16%
of which CATIA software revenue 168.1 117.9 43% 36% 288.8 234.4 23% 21%
of which ENOVIA software revenue 48.5 40.1 21% 15% 84.7 74.2 14% 12%
Mainstream 3D software revenue 78.0 64.8 20% 14% 148.9 135.9 10% 7%

Non-IFRS Revenue breakdown by geography
Americas 117.2 96.6 21% 13% 209.0 194.4 8% 7%
Europe 175.1 144.2 21% 21% 316.0 281.9 12% 12%
Asia 99.6 70.4 41% 27% 178.9 145.6 23% 14%

Non-IFRS operating income € 109.5 € 68.1 61% € 178.6 € 128.5 39%
Non-IFRS operating margin 27.9% 21.9% 25.4% 20.7%
Non-IFRS net income 70.2 43.9 60% 121.5 87.3 39%
Non-IFRS diluted net income per share € 0.58 € 0.37 57% € 1.01 € 0.74 36%
Closing headcount 8,789 7,903 11% 8,789 7,903 11%

Average Rate USD per Euro 1.27 1.36 (7%) 1.33 1.33 (0%)
Average Rate JPY per Euro 117.2 132.6 (12%) 121.3 127.3 (5%)

DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS)
(unaudited; in millions of Euros, except per share data)

Three months ended Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
New licenses revenue 85.4 69.4 161.5 134.0
Periodic licenses, maintenance and product development revenue 261.0 201.9 464.6 409.1
Software revenue 346.4 271.3 626.1 543.1
Services and other revenue 39.2 39.6 71.4 77.5
Total Revenue € 385.6 € 310.9 € 697.5 € 620.6
Cost of software revenue (excluding amortization of acquired intangibles) (19.4) (14.1) (35.8) (28.1)
Cost of services and other revenue (35.8) (35.6) (70.1) (73.5)
Research and development (83.2) (80.3) (160.6) (162.4)
Marketing and sales (121.5) (91.5) (213.6) (185.4)
General and administrative (29.4) (28.0) (56.9) (56.8)
Amortization of acquired intangibles (17.7) (11.9) (27.4) (22.6)
Other operating income and expense, net (6.6) (7.1) (11.6) (9.2)
Total Operating Expenses (€ 313.6) (€ 268.5) (€ 576.0) (€ 538.0)
Operating Income € 72.0 € 42.4 € 121.5 € 82.6
Financial revenue and other, net (3.3) (4.5) 2.4 (4.2)
Income before income taxes 68.7 37.9 123.9 78.4
Income tax expense (20.0) (12.2) (37.4) (23.9)
Net Income 48.7 25.7 86.5 54.5
Minority interest (0.1) (0.1) (0.1) (0.1)
Net Income attributable to equity holders of the parent € 48.6 € 25.6 € 86.4 € 54.4
Basic net income per share 0.41 0.22 0.73 0.46
Diluted net income per share € 0.40 € 0.22 € 0.72 € 0.46
Basic weighted average shares outstanding (in millions) 118.6 117.4 118.4 117.4
Diluted weighted average shares outstanding (in millions) 120.7 118.1 120.2 118.1

IFRS revenue variation as reported and in constant currencies

Three months ended June 30, 2010 Six months ended June 30, 2010
Change* Change in cc** Change* Change in cc**
IFRS Revenue 24% 18% 12% 10%
IFRS Revenue by activity
Software Revenue 28% 22% 15% 13%
Services and other Revenue (1%) (6%) (8%) (10%)
IFRS Software Revenue by product line
PLM software revenue 30% 24% 17% 15%
of which CATIA software revenue 38% 32% 21% 18%
of which ENOVIA software revenue 19% 13% 13% 11%
Mainstream 3D software revenue 20% 14% 10% 7%
IFRS Revenue by geography
Americas 20% 12% 7% 7%
Europe 20% 20% 12% 11%
Asia 36% 22% 21% 12%

* Variation compared to the same period in the prior year. ** In constant
currencies.

DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS)
(unaudited; in millions of Euros)

June 30, December 31,
2010 2009

ASSETS
Cash and cash equivalents 939.3 939.1
Short-term investments 81.6 118.9
Accounts receivable, net 331.0 322.3
Other current assets 119.9 121.4
Total current assets 1,471.8 1,501.7
Property and equipment, net 68.4 59.6
Goodwill and Intangible assets, net 1,322.3 660.8
Other non current assets 150.1 77.6
Total Assets € 3,012.6 € 2,299.7
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable 96.2 67.7
Unearned revenues 435.8 243.7
Other current liabilities 274.5 174.3
Total current liabilities 806.5 485.7
Long-term debt 306.8 200.1
Other non current obligations 233.1 165.1
Total long-term liabilities 539.9 365.2
Minority interests 1.0 1.1
Parent shareholders’ equity 1,665.2 1,447.7
Total Liabilities and Shareholders’ equity € 3,012.6 € 2,299.7

DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS)
(unaudited; in millions of Euros)

Three months ended Six months ended
June 30, 2010 June 30, 2009 Change June 30, 2010 June 30, 2009 Change
Net Income attributable to equity holders of the parent 48.6 25.6 23.0 86.4 54.4 32.0
Minority interest 0.1 0.1 0.0 0.1 0.1 0.0
Net Income 48.7 25.7 23.0 86.5 54.5 32.0
Depreciation and amortization of property & equipment 6.1 5.9 0.2 11.4 11.5 (0.1)
Amortization of intangible assets 18.7 12.5 6.2 29.4 24.6 4.8
Other non cash P&L Items (2.5) 4.0 (6.5) 1.9 2.7 (0.8)
Changes in working capital 61.3 32.9 28.4 136.4 84.0 52.4
Net Cash provided by operating activities 132.3 81.0 51.3 265.6 177.3 88.3

Acquisition of assets and equity, net (1) (155.1) (10.4) (144.7) (484.9) (16.8) (468.1)
Sale of fixed assets 0.5 0.3 0.2 0.7 0.5 0.2
Sale (purchase) of short term investments, net 23.1 (41.5) 64.6 42.3 (42.1) 84.4
Loans and others 0.1 0.2 (0.1) 0.1 0.0 0.1
Net Cash provided by (used in) investing activities (131.4) (51.4) (80.0) (441.8) (58.4) (383.4)

Borrowings 115.0 0.0 115.0 115.0 0.0 115.0
Share repurchase 0.0 0.0 0.0 (1.5) 0.0 (1.5)
Exercise of DS stock option 22.6 0.2 22.4 24.8 0.5 24.3
Cash dividend paid (54.5) (54.8) 0.3 (54.5) (54.8) 0.3
Net Cash provided by (used in) financing activities 83.1 (54.6) 137.7 83.8 (54.3) 138.1

Effect of exchange rate changes on 52.4 (32.4) 84.8 92.6 (13.5) 106.1
cash and cash equivalents

Increase in cash and cash equivalents 136.4 (57.4) 193.8 0.2 51.1 (50.9)

Cash and cash equivalents at beginning of period 802.9 902.6 939.1 794.1
Cash and cash equivalents at end of period 939.3 845.2 939.3 845.2

(1) The acquisition of the IBM PLM operations is presented net of payments
received from IBM in connection with the settlement of royalties due as of March
31, 2010. As a result, reported cash flows from operations are lower in the
periods presented above (and for the remainder of 2010) than they would have
been had this transaction not occurred.

DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)

Readers are cautioned that the supplemental non-IFRS information presented in
this press release is 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. Further specific limitations for individual
non-IFRS measures, and the reasons for presenting non-IFRS financial
information, are set forth in the Company`s Document de référence for the year
ended December 31, 2009 filed with the AMF on April 1, 2010 To compensate for
these limitations, the supplemental non-IFRS financial information should be
read not in isolation, but only in conjunction with the Company`s consolidated
financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages Three months ended June 30, Change
2010 Adjustment 2010 2009 Adjustment 2009 IFRS Non-IFRS
IFRS (1) non-IFRS IFRS (1) non-IFRS (2)
Total Revenue € 385.6 6.3 € 391.9 € 310.9 0.3 € 311.2 24% 26%
Total Revenue breakdown by activity
Software revenue 346.4 6.3 352.7 271.3 0.3 271.6 28% 30%
New Licenses 85.4 69.4 23%
Product Development 0.3 1.4
Periodic Licenses and Maintenance 260.7 6.3 267.0 200.5 0.3 200.8 30% 33%
Recurring portion of Software revenue 75% 76% 74% 74%
Services and other revenue 39.2 39.6 (1%)
Total Software Revenue breakdown by product line
PLM software revenue 268.4 6.3 274.7 206.5 0.3 206.8 30% 33%
of which CATIA software revenue 162.7 5.4 168.1 117.9 38% 43%
of which ENOVIA software revenue 47.6 0.9 48.5 40.1 19% 21%
Mainstream 3D software revenue 78.0 64.8 20%
Total Revenue breakdown by geography
Americas 116.2 1.0 117.2 96.5 0.1 96.6 20% 21%
Europe 173.7 1.4 175.1 144.2 20% 21%
Asia 95.7 3.9 99.6 70.2 0.2 70.4 36% 41%
Total Operating Expenses (€ 313.6) 31.2 (€ 282.4) (€ 268.5) 25.4 (€ 243.1) 17% 16%
Stock-based compensation expense (6.9) 6.9 – (6.4) 6.4 – – –
Amortization of acquired intangibles (17.7) 17.7 – (11.9) 11.9 – – –
Other operating income and expense, net (6.6) 6.6 – (7.1) 7.1 – – –
Operating Income € 72.0 37.5 € 109.5 € 42.4 25.7 € 68.1 70% 61%
Operating Margin 18.7% 27.9% 13.6% 21.9%
Income before Income Taxes 68.7 37.5 106.2 37.9 25.7 63.6 81% 67%
Income tax expense (20.0) (15.9) (35.9) (12.2) (7.4) (19.6) – –
Income tax adjustments (15.9) 15.9 – (7.4) 7.4 – – –
Minority interest (0.1) (0.1) –
Net Income attributable to shareholders € 48.6 21.6 € 70.2 € 25.6 18.3 € 43.9 90% 60%
Diluted Net Income Per Share (3) € 0.40 0.18 € 0.58 € 0.22 0.15 € 0.37 82% 57%

(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue
data reflect the exclusion of the deferred revenue adjustment of acquired
companies; (ii) adjustments to IFRS operating expenses data reflect the
exclusion of the amortization of acquired intangibles, share-based compensation
expense, and other operating income and expense, and (iii) all adjustments to
IFRS income data reflect the combined effect of these adjustments, plus with
respect to net income and diluted net income per share, the income tax effect of
the non-IFRS adjustments.

Three months ended June 30,
In millions of Euros 2010 Adjustment 2010 2009 Adjustment 2009
IFRS non-IFRS IFRS non-IFRS
Cost of services and other revenue (35.8) 0.2 (35.6) (35.6) 0.2 (35.4)
Research and development (83.2) 4.0 (79.2) (80.3) 3.7 (76.6)
Marketing and sales (121.5) 1.5 (120.0) (91.5) 1.3 (90.2)
General and administrative (29.4) 1.2 (28.2) (28.0) 1.2 (26.8)
Total stock-based compensation expense 6.9 6.4

(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for
the two different periods. In the event there is non-IFRS adjustment to the
relevant measure for only one of the periods under comparison, the non-IFRS
increase (decrease) compares the non-IFRS measure to the relevant IFRS
measure.(3) Based on a weighted average 120.7 million diluted shares for Q2 2010
and 118.1 million diluted shares for Q2 2009.

DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)

Readers are cautioned that the supplemental non-IFRS information presented in
this press release is 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. Further specific limitations for individual
non-IFRS measures, and the reasons for presenting non-IFRS financial
information, are set forth in the Company`s Document de référence for the year
ended December 31, 2009 filed with the AMF on April 1, 2010 To compensate for
these limitations, the supplemental non-IFRS financial information should be
read not in isolation, but only in conjunction with the Company`s consolidated
financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages Six months ended June 30, Change
2010 Adjustment 2010 2009 Adjustment 2009 IFRS Non-IFRS
IFRS (1) non-IFRS IFRS (1) non-IFRS (2)
Total Revenue € 697.5 6.4 € 703.9 € 620.6 1.3 € 621.9 12% 13%
Total Revenue breakdown by activity
Software revenue 626.1 6.4 632.5 543.1 1.3 544.4 15% 16%
New Licenses 161.5 134.0 21%
Product Development 0.3 2.6
Periodic Licenses and Maintenance 464.3 6.4 470.7 406.5 1.3 407.8 14% 15%
Recurring portion of Software revenue 74% 74% 75% 75%
Services and other revenue 71.4 77.5 (8%)
Total Software Revenue breakdown by product line
PLM software revenue 477.2 6.4 483.6 407.2 1.3 408.5 17% 18%
of which CATIA software revenue 283.4 5.4 288.8 234.4 21% 23%
of which ENOVIA software revenue 83.8 0.9 84.7 74.2 13% 14%
Mainstream 3D software revenue 148.9 135.9 10%
Total Revenue breakdown by geography
Americas 207.9 1.1 209.0 193.9 0.5 194.4 7% 8%
Europe 314.6 1.4 316.0 281.8 0.1 281.9 12% 12%
Asia 175.0 3.9 178.9 144.9 0.7 145.6 21% 23%
Total Operating Expenses (€ 576.0) 50.7 (€ 525.3) (€ 538.0) 44.6 (€ 493.4) 7% 6%
Stock-based compensation expense (11.7) 11.7 – (12.8) 12.8 – – –
Amortization of acquired intangibles (27.4) 27.4 – (22.6) 22.6 – – –
Other operating income and expense, net (11.6) 11.6 – (9.2) 9.2 – – –
Operating Income € 121.5 57.1 € 178.6 € 82.6 45.9 € 128.5 47% 39%
Operating Margin 17.4% 25.4% 13.3% 20.7%
Income before Income Taxes 123.9 57.1 181.0 78.4 45.9 124.3 58% 46%
Income tax expense (37.4) (22.0) (59.4) (23.9) (13.0) (36.9) – –
Income tax adjustments (22.0) 22.0 – (13.0) 13.0 – – –
Minority interest (0.1) (0.1) –
Net Income attributable to shareholders € 86.4 35.1 € 121.5 € 54.4 32.9 € 87.3 59% 39%
Diluted Net Income Per Share (3) € 0.72 0.29 € 1.01 € 0.46 0.28 € 0.74 57% 36%

(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue
data reflect the exclusion of the deferred revenue adjustment of acquired
companies; (ii) adjustments to IFRS operating expenses data reflect the
exclusion of the amortization of acquired intangibles, share-based compensation
expense, and other operating income and expense, and (iii) all adjustments to
IFRS income data reflect the combined effect of these adjustments, plus with
respect to net income and diluted net income per share, the income tax effect of
the non-IFRS adjustments.

Six months ended June 30,
In millions of Euros 2010 Adjustment 2010 2009 Adjustment 2009
IFRS non-IFRS IFRS non-IFRS
Cost of services and other revenue (70.1) 0.4 (69.7) (73.5) 0.3 (73.2)
Research and development (160.6) 6.8 (153.8) (162.4) 7.4 (155.0)
Marketing and sales (213.6) 2.4 (211.2) (185.4) 2.5 (182.9)
General and administrative (56.9) 2.1 (54.8) (56.8) 2.6 (54.2)
Total stock-based compensation expense 11.7 12.8

(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for
the two different periods. In the event there is a non-IFRS adjustment to the
relevant measure for only one of the periods under comparison, the non-IFRS
increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.

(3) Based on a weighted average 120.2 million diluted shares for H1 2010 and
118.1 million diluted shares for H1 2009.

Dassault Systèmes:
François-José Bordonado/Beatrix Martinez
33.1.61.62.69.24
or
United States and Canada:
Michele.Katz@3DS.com
or
Financial Dynamics:
Juliet Clarke/Erwan Gouraud
44.20.7831.3113
or
Eloi Perrin-Aussedat/Clément Bénétreau/
Florence de Montmarin
33.1.47.03.68.10

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

B/E Aerospace Second Quarter Results Exceed Expectations; EPS of $0.39 Up 11% (Exclusive of $0.02 Non-Cash Debt Prepayment Charge); 2010 Full Year Guidance Increased

July 28, 2010 By Leave a Comment

WELLINGTON, Fla.–(Business Wire)–
B/E Aerospace (Nasdaq: BEAV), the world`s leading manufacturer of aircraft cabin
interior products and the world`s leading distributor of aerospace fasteners and
consumables, today announced second quarter 2010 financial results.

SECOND QUARTER 2010 HIGHLIGHTS VERSUS SECOND QUARTER PRIOR YEAR

* Revenues of $483.9 million increased 1.9 percent.
* Operating earnings of $78.8 million increased 6.6 percent. Operating margin of
16.3 percent expanded 70 basis points.
* Earnings before income taxes, exclusive of the $2.5 million non-cash debt
prepayment charge, increased 14.6 percent.
* Net earnings and earnings per diluted share, exclusive of a $2.5 million or
$0.02 per share non-cash debt prepayment charge, were $39.0 million, or $0.39
per share, and increased 12.4 percent and 11.4 percent, respectively.
* Free cash flow was $46.5 million and represented a free cash flow conversion
ratio of 125 percent.
* The second quarter book-to-bill ratio was 1.1 to 1 and was in excess of one
for the third consecutive quarter.
* Full-year 2010 earnings per diluted share guidance raised by $0.05 per share
to approximately $1.50 per share (exclusive of non-cash debt prepayment
charge).

SECOND QUARTER CONSOLIDATED RESULTS

Second quarter 2010 revenues of $483.9 million increased $9.1 million, or 1.9
percent, as compared with the same period of the prior year. The increase in
consolidated revenues was due to a higher level of commercial aircraft segment
revenues.

Second quarter 2010 operating earnings of $78.8 million increased 6.6 percent on
the aforementioned 1.9 percent increase in revenues. Operating margin in the
current quarterly period was 16.3 percent and expanded by 70 basis points as
compared with the prior year period.

Second quarter 2010 earnings before income taxes, exclusive of the $2.5 million
non-cash debt prepayment charge, were $58.9 million and increased 14.6 percent
as compared with the prior year period.

Second quarter 2010 net earnings, exclusive of non-cash debt prepayment charge,
were $39.0 million, or $0.39 per diluted share, and increased 12.4 percent and
11.4 percent, respectively, as compared with the prior year period. During the
second quarter of 2010 the company prepaid $75 million of long-term debt
resulting in a $2.5 million non-cash debt prepayment charge (approximately $0.02
per diluted share). Second quarter 2010 earnings per diluted share, including
the non-cash debt prepayment charge, were $0.37.

Second quarter 2010 free cash flow was $46.5 million, representing a free cash
flow conversion ratio of 125 percent.

Commenting on the company`s recent performance, Amin J. Khoury, Chairman and
Chief Executive Officer of B/E Aerospace said, “Our second quarter earnings
growth was driven by significant margin expansion at both our consumables
management segment (CMS) and our commercial aircraft segment (CAS). Our CMS
operating margin expanded by 160 basis points to 19.8 percent while our CAS
operating margin expanded by 140 basis points to 15.5 percent. Overall,
operating earnings increased 7 percent on a 2 percent increase in revenues.
Exclusive of a $2.5 million or $0.02 per share non-cash debt prepayment charge,
pretax earnings, net earnings and earnings per share increased 14.6 percent,
12.4 percent and 11.4 percent, respectively. Our free cash flow conversion ratio
was 125 percent, we prepaid $75 million of long-term debt and for the third
consecutive quarter our backlog grew. This, together with an expected continued
increase in global passenger traffic, underscores our expectation for stronger
operating results in 2010 and significant improvements thereafter. As a result,
we are raising our 2010 EPS guidance by $0.05 per diluted share to approximately
$1.50 per diluted share (exclusive of the non-cash debt prepayment charge).”

Earnings before income taxes exclusive of non-cash debt prepayment charge, net
earnings exclusive of debt prepayment charge, adjusted earnings per diluted
share exclusive of debt prepayment charge, free cash flow and free cash flow
conversion ratio are non-GAAP financial measures. For more information see
“Reconciliation of Non-GAAP Financial Measures.”

SECOND QUARTER SEGMENT RESULTS

The following is a tabular summary and commentary of revenues and operating
earnings by segment:

REVENUES
Three Months Ended June 30,
($ in millions)
2010 2009 % Change
Consumables management $ 193.1 $ 196.6 -1.8 %
Commercial aircraft 236.4 223.9 5.6 %
Business jet 54.4 54.3 0.2 %
Total $ 483.9 $ 474.8 1.9 %

OPERATING EARNINGS
Three Months Ended June 30,
($ in millions)
2010 2009 % Change
Consumables management $ 38.2 $ 35.8 6.7 %
Commercial aircraft 36.6 31.6 15.8 %
Business jet 4.0 6.5 -38.5 %
Total $ 78.8 $ 73.9 6.6 %

Second quarter 2010 consumables management segment (CMS) revenues of $193.1
million were 1.8 percent lower as compared with the second quarter of 2009.
Sequentially, second quarter 2010 CMS revenues increased 3.8 percent as compared
with the first quarter of 2010. Second quarter 2010 CMS operating earnings of
$38.2 million increased 6.7 percent and operating margin of 19.8 percent
expanded 160 basis points as compared with the second quarter of 2009.

Second quarter 2010 commercial aircraft segment (CAS) revenues of $236.4 million
increased 5.6 percent as compared with the prior year period. CAS spares
revenues in the second quarter of 2010 increased at a double digit rate as
compared with the second quarter of 2009. CAS second quarter 2010 operating
earnings were $36.6 million, or 15.5 percent of revenues, an increase of 15.8
percent as compared with the prior year. Second quarter 2010 operating margin
expanded 140 basis points as compared with the prior year period primarily due
to a higher level of spares revenues and ongoing operational efficiencies.

Second quarter 2010 business jet segment revenues of $54.4 million were flat as
compared with the prior year period. Operating earnings of $4.0 million
decreased $2.5 million or 38.5 percent as compared with the prior year period
primarily as a result of an unfavorable mix of product revenues in the current
year period.

SIX-MONTH CONSOLIDATED RESULTS

For the six months ended June 30, 2010, revenues of $947.4 million declined 5.1
percent as compared with the prior year period as a result of lower revenues in
the first quarter of 2010 as compared with the first quarter of 2009.

For the six months ended June 30, 2010, operating earnings of $150.8 million
declined 2.5 percent as compared with the prior year period as a result of 5.1
percent lower revenues in the current period. Operating margin in the current
period of 15.9 percent expanded 40 basis points as compared to the prior year
period.

For the six months ended June 30, 2010, net earnings were $71.1 million, or
$0.71 per diluted share, as compared with $72.6 million, or $0.73 per diluted
share, in the prior year period. During the second quarter of 2010 the company
prepaid $75 million of long-term debt resulting in a debt prepayment charge of
approximately $0.02 per diluted share. Exclusive of the charge, earnings per
diluted share for the 2010 period were $0.72 per diluted share.

SIX-MONTH SEGMENT RESULTS

The following is a tabular summary and commentary of revenues and operating
earnings by segment:

REVENUES
Six Months Ended June 30,
($ in millions)
2010 2009 % Change
Consumables management $ 379.2 $ 436.0 -13.0 %
Commercial aircraft 466.5 449.8 3.7 %
Business jet 101.7 112.7 -9.8 %
Total $ 947.4 $ 998.5 -5.1 %

OPERATING EARNINGS
Six Months Ended June 30,
($ in millions)
2010 2009 % Change
Consumables management $ 75.0 $ 83.2 -9.9 %
Commercial aircraft 70.4 60.1 17.1 %
Business jet 5.4 11.3 -52.2 %
Total $ 150.8 $ 154.6 -2.5 %

For the six months ended June 30, 2010, CMS revenues of $379.2 million declined
13.0 percent as compared with the prior year period, primarily as a result of
lower revenues in the first quarter of 2010 as compared with the first quarter
of 2009. CMS bookings in the first half of 2010 increased more than 10 percent
sequentially as compared with the second half of 2009. First half 2010 operating
earnings declined 9.9 percent as compared with the prior year period. The first
half 2010 CMS operating margin of 19.8 percent increased 70 basis points as
compared with the prior year period primarily due to ongoing operational
efficiencies. CMS operating earnings in the first half of 2010 increased 10.6
percent on a 4.7 percent increase in revenues sequentially as compared with the
second half of 2009.

For the six months ended June 30, 2010, CAS revenues of $466.5 million increased
3.7 percent as compared with the prior year period. CAS spares revenues and
bookings in the first half of 2010 increased at a healthy double digit rate
sequentially as compared with the second half of 2009. First half 2010 CAS
operating earnings were $70.4 million, or 15.1 percent of revenues, an increase
of 17.1 percent as compared with the prior year period. Current period operating
margin expanded 170 basis points as compared with the prior year period
primarily as a result of a higher level of spares revenues and ongoing
operational efficiencies.

For the six months ended June 30, 2010, business jet segment revenues of $101.7
million declined 9.8 percent and operating earnings of $5.4 million decreased
$5.9 million or 52.2 percent as compared with the prior year period, as a result
of lower revenues, an unfavorable mix of product revenues and the negative
impact of reduced operating leverage in the current year period.

LIQUIDITY AND BALANCE SHEET METRICS

Second quarter 2010 free cash flow of $46.5 million represents a free cash flow
conversion ratio of 125 percent. During the second quarter of 2010 the company
prepaid $75 million of long-term debt and has prepaid $175 million of long-term
debt since the fourth quarter of 2009. Net debt as of June 30, 2010 was $819.5
million and the company`s net debt-to-net capital ratio was 35.5 percent, an
improvement of 610 basis points since June 30, 2009. The company has no
borrowings outstanding on its $350 million revolving credit facility and no debt
maturities until 2014.

BOOKINGS

Bookings during the second quarter of 2010 were strong at approximately $550
million reflecting solid bookings with respect to both new aircraft and
aftermarket programs. The book-to-bill ratio was 1.1 to 1 for the quarter, and
for the third consecutive quarter represented a book-to-bill ratio in excess of
one. Backlog at the end of the quarter was approximately $2.8 billion, an
increase of approximately 4 percent as compared with the company`s June 30, 2009
backlog and supplier furnished equipment programs awarded expanded to $2.62
billion. As a result, total backlog, booked and unbooked expanded to a record
$5.4 billion.

OUTLOOK

Commenting on the company`s outlook, Mr. Khoury stated, “As a result of our
better than expected performance during the first half of 2010, improving global
air traffic, and improving airline yields, we are raising our 2010 full year
earnings per share guidance by $0.05 per diluted share to approximately $1.50
per diluted share (exclusive of non-cash debt prepayment charge). 2010 revenues
are now expected to be about equal to 2009 revenues of approximately $1.94
billion. In addition, we expect to generate free cash flow in excess of 100
percent of net earnings for the full year 2010. Importantly, based upon our
expectation of a continued expansion in orders and backlog and a continued
recovery in our commercial aircraft segment spares and consumables businesses
during 2010 as well as higher levels of wide-body aircraft deliveries in 2011,
we expect a significant increase in revenues, earnings and cash flows beginning
in 2011.”

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements include, but are not
limited to, B/E Aerospace`s financial guidance and industry expectations for the
next several years and the expected benefits from the HCS acquisition. Such
forward-looking statements involve risks and uncertainties. B/E Aerospace`s
actual experience and results may differ materially from the experience and
results anticipated in such statements. Factors that might cause such a
difference include changes in market and industry conditions and those discussed
in B/E Aerospace`s filings with the Securities and Exchange Commission, which
include its Proxy Statement, Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. For more information, see the section
entitled “Forward-Looking Statements” contained in B/E Aerospace`s Annual Report
on Form 10-K and in other filings. The forward-looking statements included in
this news release are made only as of the date of this news release and, except
as required by federal securities laws, we do not intend to publicly update or
revise any forward-looking statements to reflect subsequent events or
circumstances.

About B/E Aerospace

B/E Aerospace is the world`s leading manufacturer of aircraft cabin interior
products and the world`s leading distributor of aerospace fasteners and
consumables. B/E Aerospace designs, develops and manufactures a broad range of
products for both commercial aircraft and business jets. B/E Aerospace
manufactured products include aircraft cabin seating, lighting, oxygen, and food
and beverage preparation and storage equipment. The company also provides cabin
interior design, reconfiguration and passenger-to-freighter conversion services.
Products for the existing aircraft fleet – the aftermarket – generate
approximately 50 percent of sales. B/E Aerospace sells and supports its products
through its own global direct sales and product support organization. For more
information, visit the B/E Aerospace website at www.beaerospace.com.

BE AEROSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(In Millions, Except Per Share Data)

THREE MONTHS ENDED SIX MONTHS ENDED
June 30, June 30, June 30, June 30,
2010 2009 2010 2009

Revenues $ 483.9 $ 474.8 $ 947.4 $ 998.5
Cost of sales 309.6 309.5 605.3 656.5
Selling, general and administrative 70.0 68.1 138.7 140.1
Research, development and engineering 25.5 23.3 52.6 47.3

Operating earnings 78.8 73.9 150.8 154.6

Operating earnings, as a percentage of revenues 16.3 % 15.6 % 15.9 % 15.5 %

Interest expense, net 19.9 22.5 40.7 45.0
Debt prepayment costs 2.5 — 2.5 —

Earnings before income taxes 56.4 51.4 107.6 109.6

Income taxes 19.1 16.7 36.5 37.0

Net earnings $ 37.3 $ 34.7 $ 71.1 $ 72.6

Net earnings per common share:

Basic $ 0.37 $ 0.35 $ 0.71 $ 0.74
Diluted $ 0.37 $ 0.35 $ 0.71 $ 0.73

Weighted average common shares:

Basic 99.5 98.3 99.5 98.3
Diluted 100.7 99.1 100.6 98.9

BE AEROSPACE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In Millions)

June 30, December 31,
2010 2009

ASSETS

Current assets:
Cash and cash equivalents $ 123.9 $ 120.1
Accounts receivable, net 251.2 222.5
Inventories, net 1,259.9 1,247.4
Deferred income taxes, net 0.4 12.1
Other current assets 23.4 20.5
Total current assets 1,658.8 1,622.6
Long-term assets 1,177.1 1,217.5
$ 2,835.9 $ 2,840.1

LIABILITIES AND STOCKHOLDERS` EQUITY

Total current liabilities $ 365.8 $ 335.7
Total long-term liabilities 980.6 1,056.9
Total stockholders’ equity 1,489.5 1,447.5
$ 2,835.9 $ 2,840.1

BE AEROSPACE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In Millions)

SIX MONTHS ENDED
June 30, June 30,
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 71.1 $ 72.6
Adjustments to reconcile net earnings to net cash flows provided by
(used in) operating activities:

Depreciation and amortization 25.0 24.1
Provision for doubtful accounts 1.0 0.6
Non-cash compensation 13.9 11.5
Debt prepayment costs 2.5 —
Loss on disposal of property and equipment 0.5 1.8
Tax benefits realized from prior exercises of employee stock options (5.4 ) —
Deferred income taxes 24.7 26.4
Changes in operating assets and liabilities:
Accounts receivable (36.0 ) 24.3
Inventories (28.8 ) (130.6 )
Other current assets and other assets 2.4 20.9
Payables, accruals and other liabilities 25.4 (57.1 )
Net cash provided by (used in) operating activities 96.3 (5.5 )

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (17.0 ) (15.5 )
Other, net 0.1 (0.4 )
Net cash used in investing activities (16.9 ) (15.9 )

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock issued 1.4 1.6
Tax benefits realized from prior exercises of employee stock options 5.4 —
Principal payments on long-term debt (75.2 ) (3.2 )
Net cash used in financing activities (68.4 ) (1.6 )

Effect of foreign exchange rate changes on cash and cash equivalents (7.2 ) 1.3

Net increase (decrease) in cash and cash equivalents 3.8 (21.7 )

Cash and cash equivalents, beginning of period 120.1 168.1

Cash and cash equivalents, end of period $ 123.9 $ 146.4

BE AEROSPACE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

This release includes the financial measures “earnings before income taxes
exclusive of the non-cash debt prepayment charge,” “net earnings exclusive of
the non-cash debt prepayment charge,” “net earnings per diluted share exclusive
of the non-cash debt prepayment charge,” “free cash flow” and “free cash flow
conversion ratio,” which are “non-GAAP financial measures” as defined in
Regulation G of the Securities and Exchange Act of 1934.

The company defines “earnings before taxes exclusive of the non-cash debt
prepayment charge,” “net earnings exclusive of the non-cash debt prepayment
charge,” and “net earnings per diluted share exclusive of the non-cash debt
prepayment charge,” as earnings before taxes, net earnings or net earnings per
diluted share reported under GAAP, as the case may be, less the amount of the
charge associated with the company`s prepayment of $75 million of its long-term
debt. The company believes these financial measures are relevant and useful for
investors because it allows investors to have a better understanding of the
company`s operating performance that were not affected by the debt prepayment
charge. These financial measures should not be viewed as a substitute for or
superior to earnings before taxes, net earnings and net earnings per diluted
share, respectively, which are the most comparable GAAP measures and as measures
of the company`s operating performance. The debt prepayment charge, which was a
non-cash charge,in the second quarter of 2010 was $2.5 million, or $0.02 per
share.

The company defines “free cash flow” as net cash flows provided by operating
activities, plus tax benefits from the exercise of stock options, less capital
expenditures. The company uses free cash flow to provide investors with an
additional perspective on the company’s cash flow provided by operating
activities after taking into account reinvestments. Free cash flow does not take
into account debt service requirements and therefore does not reflect an amount
available for discretionary purposes. The company defines “free cash flow
conversion ratio” as free cash flow expressed as a percentage of the company`s
net earnings. The company uses free cash flow conversion ratio to provide
investors with a measurement of its ability to convert earnings into free cash
flow.

Pursuant to the requirements of Regulation G, the company is providing the
following tables which reconcile the non-GAAP financial measures described above
to the most comparable GAAP measure.

RECONCILIATION OF EARNINGS BEFORE TAXES TO EARNINGS BEFORE TAXES
EXCLUSIVE OF NON-CASH DEBT PREPAYMENT CHARGE
(In Millions, Except Per Share Data)

Three Months Ended
June 30,
2010
Earnings before taxes, as reported $ 56.4
Debt prepayment costs 2.5
Earnings before taxes exclusive of non-cash debt prepayment $ 58.9

RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS
EXCLUSIVE OF NON-CASH DEBT PREPAYMENT CHARGE
(In Millions, Except Per Share Data)

Three Months Ended Six Months Ended
June 30, June 30,
2010 2010
Net earnings, as reported $ 37.3 $ 71.1
Debt prepayment costs 2.5 2.5
Income taxes on debt extinguishment costs (0.8 ) (0.8 )
(33.9% effective tax rate)
Net earnings exclusive of non-cash debt prepayment $ 39.0 $ 72.8

Net earnings per diluted share
exclusive of non-cash debt prepayment $ 0.39 $ 0.72

Net earnings per diluted share, as reported $ 0.37 $ 0.71

RECONCILIATION OF NET CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
(In Millions)

Three Months Ended
June 30,
2010
Net cash flow provided by operating activities $ 48.8
Add back: tax benefits realized from prior exercises of employee stock options 5.4
Less: capital expenditures (7.7 )
Free cash flow $ 46.5

B/E Aerospace
Greg Powell, Vice President, Investor Relations
561-791-5000 ext. 1450

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

SAP Reports 16% Growth in Software and Software-Related Service Revenues for the Second Quarter

July 28, 2010 By Leave a Comment

WALLDORF, Germany July 27 /PRNewswire-FirstCall/ — SAP AG (NYSE: SAP) today announced its preliminary financial results for the second quarter ended June 30, 2010.

(Logo: http://photos.prnewswire.com/prnh/20050310/SFTH009LOGO-a )

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FINANCIAL HIGHLIGHTS – Second Quarter 2010

Second Quarter 2010(1)

IFRS

Non-IFRS(2)

€ million, unless
otherwise stated

Q2 2010

Q2 2009

% change

Q2 2010

Q2 2009

% change

% change
const. curr.(3)

Software revenue

637

543

17%

637

543

17%

5%

Software and software-related service revenue

2,258

1,953

16%

2,258

1,953

16%

8%

Total revenue

2,894

2,576

12%

2,894

2,576

12%

5%

Total operating expenses

-2,120

-1,935

10%

-2,054

-1,866

10%

4%

– thereof restructuring

-1

-17

-94%

-1

-17

-94%

Operating profit

774

641

21%

840

710

18%

5%

Operating margin (%)

26.7

24.9

1.8pp

29.0

27.6

1.4pp

0.2pp

Profit after tax

491

426

15%

551

478

15%

Basic earnings per share (€)

0.41

0.36

14%

0.46

0.40

15%

(1) All figures are preliminary and unaudited.

(2) Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have
recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under
IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items
are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures in the
appendix for details.

(3) Constant currency revenue and operating profit figures are calculated by translating revenue and operating
profit of the current period using the average exchange rates from the previous year’s respective period
instead of the current period. Constant currency period-over-period changes are calculated by comparing the
current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s
respective period. See Explanations of Non-IFRS Measures in the appendix for details.

Revenues – Second Quarter 2010

* IFRS software and software-related service revenues were euro 2.26 billion (2009: euro 1.95 billion), an increase of 16% (8% at constant currencies).
* IFRS software revenues were euro 637 million (2009: euro 543 million), an increase of 17% (5% at constant currencies).
* IFRS total revenues were euro 2.89 billion (2009: euro 2.58 billion), an increase of 12% (5% at constant currencies).

Income – Second Quarter 2010

* IFRS operating profit was euro 774 million (2009: euro 641 million), an increase of 21%. Non-IFRS operating profit was euro 840 million (2009: euro 710 million), an increase of 18% (5% at constant currencies). In the second quarter of 2009, the IFRS and Non-IFRS operating income was impacted by restructuring charges of euro 17 million resulting from a reduction of positions. In contrast, restructuring charges were not material in the second quarter of 2010.
* IFRS operating margin was 26.7% (2009: 24.9%), an increase of 1.8 percentage points. Non-IFRS operating margin was 29.0% (2009: 27.6%), or 27.8% at constant currencies, an increase of 1.4 percentage points (0.2 percentage points at constant currencies). In contrast to the respective quarter in 2009, the second quarter of 2010 was not materially impacted by restructuring expenses which had, in the second quarter of 2009, negatively impacted the IFRS and Non-IFRS operating margin by 0.7 percentage points. However, severance expenses of euro 11 million (2009: euro 1.3 million) negatively impacted the second quarter 2010 IFRS and Non-IFRS operating margin by 0.4 percentage points (2009: 0.1 percentage points).
* IFRS profit after tax was euro 491 million (2009: euro 426 million), an increase of 15%. Non-IFRS profit after tax was euro 551 million (2009: euro 478 million), an increase of 15%. IFRS basic earnings per share were euro 0.41 (2009: euro 0.36), an increase of 14%. Non-IFRS basic earnings per share were euro 0.46 (2009: euro 0.40), an increase of 15%. The impact, net of tax, of the severance expenses incurred in the second quarter 2010 on the second quarter 2010 IFRS and Non-IFRS basic earnings per share was euro 0.01. The impact, net of tax, of the restructuring expenses incurred in the second quarter 2009 on the second quarter 2009 IFRS and Non-IFRS basic earnings per share was euro 0.01. The IFRS effective tax rate in the second quarter of 2010 was 27.4% (2009: 28.5%).

Second Quarter 2010 Non-IFRS operating profit excludes acquisition-related charges and discontinued activities totaling euro 66 million (2009: euro 69 million). Second quarter 2010 Non-IFRS profit after tax and Non-IFRS basic earnings per share exclude acquisition-related charges and discontinued activities totaling euro 60 million net of tax (2009: euro 52 million).

“We are pleased to report another quarter of growth in software and software-related service revenue,” said Werner Brandt, CFO of SAP. “The top line results were driven by continued growth in software revenue, strong support revenue, mainly from the majority of our customers who endorsed Enterprise Support, and double-digit growth in subscription revenue.”

“Customers continue to invest for growth across large, midsized and small enterprises and within many industries,” said Bill McDermott, Co-CEO of SAP. “We had outstanding growth in strategic markets like the U.S. and we saw continued double-digit growth in key emerging markets in Latin America and Asia. This solid performance is due to renewed customer confidence, an ever-expanding ecosystem, as well as focused execution on our go-to-market strategy.”

“Our focus on customer-driven innovation is positively impacting our growth. Reaching more than 100,000 customers is a testament to the inroads we have made in expanding our volume business and our success in the small and midsized enterprise (SME) segment,” said Jim Hagemann Snabe, Co-CEO of SAP. “Our success in the SME segment creates a strong foundation for the new version of our on-demand platform SAP Business ByDesign. The new version will be available on time on July 31st and is ready for volume deployment in six countries.”

SAP Completes Tender Offer for Shares of Sybase, Inc.

SAP also announced today that it has completed the cash tender offer for all outstanding shares of common stock of Sybase. Under the terms of the agreement, Sybase will operate as a separate company under the leadership of current CEO John Chen and will remain focused on its core business. Sybase will continue to execute plans and product strategies around its core database and information management business and Sybase’s expertise in the mobile business will be a key driver for the Sybase and SAP vision for the unwired enterprise. For more details on SAP and Sybase, please visit www.sap.com/about/investor/sybase.epx .

The acquisition rounds out the Company’s three pillar strategy of providing solutions on-premise, on-demand and on-device supported by orchestration. Already the clear leader in on-premise business software solutions, the Company expects that with its aggressive push into on-demand and now on-device, with the biggest and most heterogeneous mobile platform provided by the acquisition of Sybase, it will be able to extend its reach into new user categories well beyond its traditional user base.

SAP will host a press briefing on August 19, 2010 in Boston, Massachusetts, where SAP Co-CEO Bill McDermott, Sybase CEO John Chen and members of the SAP leadership team will share details on joint company strategy and product road maps, along with planned co-innovations in mobility, analytics and database technologies. Details on the event will follow in a media alert to be issued in early August.

FINANCIAL HIGHLIGHTS – Six Months 2010

First Half 2010(1)

IFRS

Non-IFRS(2)

€ million, unless
otherwise stated

1H 2010

1H 2009

% change

1H 2010

1H 2009

% change

% change const. curr.(3)

Software revenue

1,101

962

14%

1,101

962

14%

6%

Software and software-related service revenue

4,205

3,695

14%

4,205

3,706

13%

9%

Total revenue

5,403

4,974

9%

5,403

4,985

8%

4%

Total operating expenses

-4,072

-4,026

1%

-3,951

-3,879

2%

-1%

– thereof restructuring

-1

-183

-99%

-1

-178

-99%

Operating profit

1,331

948

40%

1,452

1,106

31%

20%

Operating margin (%)

24.6

19.1

5.5pp

26.9

22.2

4.7pp

3.5pp

Profit after tax

878

622

41%

986

740

33%

Basic earnings per share (€)

0.74

0.52

42%

0.83

0.62

34%

(1) All figures are preliminary and unaudited.

(2) Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have
recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under
IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items
are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures in
the appendix for details.

(3) Constant currency revenue and operating profit figures are calculated by translating revenue and
operating profit of the current period using the average exchange rates from the previous year’s respective
period instead of the current period. Constant currency period-over-period changes are calculated by
comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous
year’s respective period. See Explanations of Non-IFRS Measures in the appendix for details.

Revenues – Six Months 2010

* IFRS software and software-related service revenues were euro 4.21 billion (2009: euro 3.70 billion), an increase of 14%. Non-IFRS software and software-related service revenues were euro 4.21 billion (2009: euro 3.71 billion), an increase of 13% (9% at constant currencies).
* IFRS software revenues were euro 1.10 billion (2009: euro 962 million), an increase of 14% (6% at constant currencies).
* IFRS total revenues were euro 5.40 billion (2009: euro 4.97 billion), an increase of 9%. Non-IFRS total revenues were euro 5.40 billion (2009: euro 4.99 billion), an increase of 8% (4% at constant currencies).

Six months 2009 Non-IFRS revenue figures exclude a deferred support revenue write-down from the acquisition of Business Objects of euro 11 million.

Income – Six Months 2010

* IFRS operating profit was euro 1.33 billion (2009: euro 948 million), an increase of 40%. Non-IFRS operating profit was euro 1.45 billion (2009: euro 1.11 billion), an increase of 31% (20% at constant currencies). In the first half of 2009, the IFRS and Non-IFRS operating income was impacted by restructuring charges of euro 183 million and euro 178 million, respectively, resulting from a reduction of positions.
* IFRS operating margin was 24.6% (2009: 19.1%), an increase of 5.5 percentage points. Non-IFRS operating margin was 26.9% (2009: 22.2%), or 25.7% at constant currencies, an increase of 4.7 percentage points (3.5 percentage points at constant currencies). In contrast to the respective first half of 2009, the first half of 2010 was not materially impacted by restructuring expenses which had, in the first half of 2009, negatively impacted the IFRS and Non-IFRS operating margin by 3.7 percentage points and 3.6 percentage points, respectively. However, severance expenses of euro 38 million (2009: euro 3.1 million) and unused lease space expenses of euro 8 million negatively impacted the IFRS and Non-IFRS operating margin by 0.9 percentage points (2009: 0.1 percentage points).
* IFRS profit after tax was euro 878 million (2009: euro 622 million), an increase of 41%. Non-IFRS profit after tax was euro 986 million (2009: euro 740 million), an increase of 33%. IFRS basic earnings per share were euro 0.74 (2009: euro 0.52), an increase of 42%. Non-IFRS basic earnings per share were euro 0.83 (2009: euro 0.62), an increase of 34%. The impact, net of tax, of the severance and unused lease space expenses incurred in the first half of 2010 on the first half 2010 IFRS and Non-IFRS basic earnings per share was euro 0.03. The impact, net of tax, of the restructuring expenses incurred in the first half of 2009 on the first half 2009 IFRS and Non-IFRS basic earnings per share was euro 0.11. The IFRS effective tax rate in the first half year 2010 was 26.6% (2009: 29.6%). The year over year decrease in the effective tax rate mainly results from tax effects on changes in foreign currency exchange rates. The currency related tax effects recorded in the second quarter 2010 were substantially compensated by several individually minor negative tax effects.

First half 2010 Non-IFRS operating profit excludes acquisition-related charges and discontinued activities totaling euro 121 million (2009: euro 158 million). First half 2010 Non-IFRS profit after tax and Non-IFRS basic earnings per share exclude acquisition-related charges and discontinued activities totaling euro 108 million net of tax (2009: euro 118 million).

Cash Flow – Six Months 2010

Operating cash flow was euro 1.28 billion (2009: euro 1.82 billion), a decrease of 30%. The year-over-year decrease in operating cash flow resulted from 1) timing of cash inflows as the Company received significantly more payments from customers in 2009 compared to 2010 due to the onset of the financial crisis that caused 2008 payment delays; 2) net cash outflows for derivative financial instruments used for the hedging of foreign exchange risks which did not affect profit, but were higher in the first six months 2010 compared to the prior period; and 3) a one-time payment in the second quarter of 2010 from the settlement of a lawsuit with the main part of the corresponding insurance reimbursement expected to be received in subsequent periods. Free cash flow was euro 1.16 billion (2009: euro 1.72 billion), a decrease of 33%. Free cash flow was 21% of total revenues (2009: 35%). At June 30, 2010, SAP had a total group liquidity of euro 3.96 billion (December 31, 2009: euro 2.28 billion), which includes cash and cash equivalents and short term investments. At June 30, 2010, net liquidity, defined as total group liquidity less short term debt, was euro 2.19 billion.

Business Outlook

SAP is providing the following outlook for the full-year 2010, which now takes into account the acquisition of Sybase:

* The Company expects full-year 2010 Non-IFRS software and software-related service revenue (1) to increase in a range of 9% – 11% at constant currencies (2009: euro 8.2 billion). SAP’s business, excluding the contribution from Sybase, is expected to contribute 6 – 8 percentage points to this growth.
* The Company expects the full-year 2010 Non-IFRS operating margin to be in a range of 30% – 31% (2009: 27.4%) at constant currencies.
* The Company projects an effective tax rate of 27.5% – 28.5% (based on IFRS) for 2010 (2009: 28.1%).

(1) Unchanged from the past, software and software-related service revenue continues to only include software and services directly related to software. Revenues from all other services (including consulting, training and Sybase’s messaging services) continue to be reported as Professional Services and Other Service Revenue.

Major Customer Wins

In the second quarter of 2010, SAP closed major contracts in key regions.

In EMEA: E.ON IT GmbH, Sisal S.p.A., Bashneft ANK OAO, Swiss Reinsurance Company Ltd., DSG Retail Ltd; In the Americas: American Water Works Service Co., U.S. Department of Agriculture, Delta Air Lines, Inc., Pelagio Oliveira S/A, Montepio Luz Savinon I.A.P, H.D. Smith Wholesale Drug Co., United Nations; In Asia Pacific/Japan: Shanghai Huayi (Group) Company, Huaneng Lancang River Hydro Power, National Institute for Environmental Studies, Sumitomo Chemical Co.,Ltd, Malaysia Airports Holdings Berhad, Parkway Hospitals Singapore Pte Ltd.

Webcast / Supplementary Financial Information

SAP senior management will host a conference call today at 3:00 PM (CET) / 2:00 PM (UK) / 9:00 AM (Eastern) / 6:00 AM (Pacific). The conference call will be web cast live on the Company’s website at http://www.sap.com/investor and will be available for replay.

Supplementary financial information pertaining to the quarterly results can be found at http://www.sap.com/investor.

SAP First Half 2010 Interim Report

The First Half 2010 Interim Report will be published on July 29th, 2010 and will be available for download at http://www.sap.com/investor.

About SAP

SAP is the world’s leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 102,500 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” For more information, visit www.sap.com.

(*) SAP defines business software as comprising enterprise resource planning, business intelligence, and related applications.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright © 2010 SAP AG. All rights reserved.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

For more information, press only:

Christoph Liedtke

+49 (6227) 7-50383

christoph.liedtke@sap.com, CET

Guenter Gaugler

+49 (6227) 7-65416

guenter.gaugler@sap.com, CET

Jim Dever

+1 (610) 661-2161

james.dever@sap.com, ET

For more information, financial community only:

Stefan Gruber

+49 (6227) 7-44872

investor@sap.com, CET

Martin Cohen

+1 (212) 653-9619

investor@sap.com, ET

Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information to Follow

FINANCIAL INFORMATION

FOR THE SECOND QUARTER AND HALF YEAR 2010

– Condensed, Preliminary and Unaudited –

Page

Financial Statements (IFRS)

Income Statements – Quarter

F1

Statements of Comprehensive Income – Quarter

F2

Income Statements – Half Year

F3

Statements of Comprehensive Income – Half Year

F4

Statements of Financial Position

F5

Statements of Changes in Equity

F6

Statements of Cash Flows

F7

Supplementary Financial Information

Reconciliations from Non-IFRS Numbers to IFRS Numbers

F8 to F9

Revenue by Region

F10 to F11

Share-Based Compensation

F12

Free Cash Flow

F12

Days Sales Outstanding

F12

Headcount

F12

Multi-Quarter Summary

F13

Explanations of Non-IFRS Measures

F14 to F16

Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP

For the three months ended June 30

€ millions, unless otherwise stated

2010

2009

Change in %

Software revenue

637

543

17

Support revenue

1,526

1,337

14

Subscription and other software-related service revenue

95

73

30

Software and software-related service revenue

2,258

1,953

16

Consulting revenue

528

517

2

Training revenue

71

70

1

Other service revenue

18

23

-22

Professional services and other service revenue

617

610

1

Other revenue

19

13

46

Total revenue

2,894

2,576

12

Cost of software and software-related services

-415

-400

4

Cost of professional services and other services

-497

-467

6

Research and development

-397

-373

6

Sales and marketing

-658

-561

17

General and administration

-156

-123

27

Restructuring

-1

-17

-94

Other operating income/expense, net

4

6

-33

Total operating expenses

-2,120

-1,935

10

Operating profit

774

641

21

Other non-operating income/expense, net

-86

-22

>100

Finance income

11

8

38

Finance costs

-21

-28

-25

Other financial gains/losses, net

-2

-3

-33

Financial income, net

-12

-23

-48

Profit before tax

676

596

13

Income tax expense

-185

-170

9

Profit after tax

491

426

15

– Profit attributable to non-controlling interests

0

1

-100

– Profit attributable to owners of parent

491

425

16

Basic earnings per share, in €

0.41

0.36

14

Diluted earnings per share, in €

0.41

0.36

14

* For the three months ended June 30, 2010 and 2009 the weighted average number of shares were 1,188 million
(Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF SAP GROUP

for the second quarter ended June 30

€ millions

2010

2009

Profit after tax

491

426

Gains (losses) on exchange differences on translation, before tax

142

3

Reclassification adjustments on exchange differences on translation, before tax

-11

0

Exchange differences on translation

131

3

Gains (losses) on remeasuring available-for-sale financial assets, before tax

-7

1

Reclassification adjustments on available-for-sale financial assets, before tax

0

0

Available-for-sale financial assets

-7

1

Gains (losses) on cash flow hedges, before tax

-40

-7

Reclassification adjustments on cash flow hedges, before tax

11

25

Cash flow hedges

-29

18

Actuarial gains (losses) on defined benefit plans, before tax

-5

3

Other comprehensive income before tax

90

25

Income tax relating to components of other comprehensive income

10

-6

Other comprehensive income after tax

100

19

Total comprehensive income

591

445

– attributable to non-controlling interests

1

1

– attributable to owners of parent

590

444

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP

For the six months ended June 30

€ millions, unless otherwise stated

2010

2009

Change in %

Software revenue

1,101

962

14

Support revenue

2,920

2,589

13

Subscription and other software-related service revenue

184

144

28

Software and software-related service revenue

4,205

3,695

14

Consulting revenue

1,007

1,071

-6

Training revenue

130

142

-8

Other service revenue

37

47

-21

Professional services and other service revenue

1,174

1,260

-7

Other revenue

24

19

26

Total revenue

5,403

4,974

9

Cost of software and software-related services

-814

-786

4

Cost of professional services and other services

-948

-989

-4

Research and development

-790

-738

7

Sales and marketing

-1,215

-1,074

13

General and administration

-304

-262

16

Restructuring

-1

-183

-99

Other operating income/expense, net

0

6

-100

Total operating expenses

-4,072

-4,026

1

Operating profit

1,331

948

40

Other non-operating income/expense, net

-122

-23

>100

Finance income

22

17

29

Finance costs

-33

-53

-38

Other financial gains/losses, net

-1

-6

-83

Financial income, net

-12

-42

-71

Profit before tax

1,197

883

36

Income tax expense

-319

-261

22

Profit after tax

878

622

41

– Profit attributable to non-controlling interests

1

1

0

– Profit attributable to owners of parent

877

621

41

Basic earnings per share, in €

0.74

0.52

42

Diluted earnings per share, in €

0.74

0.52

42

* For the six months ended June 30, 2010 and 2009 the weighted average number of shares were 1,189 million
(Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF SAP GROUP

for the six months ended June 30

€ millions

2010

2009

Profit after tax

878

622

Gains (losses) on exchange differences on translation, before tax

272

35

Reclassification adjustments on exchange differences on translation, before tax

-17

0

Exchange differences on translation

255

35

Gains (losses) on remeasuring available-for-sale financial assets, before tax

-1

1

Reclassification adjustments on available-for-sale financial assets, before tax

0

0

Available-for-sale financial assets

-1

1

Gains (losses) on cash flow hedges, before tax

-72

-22

Reclassification adjustments on cash flow hedges, before tax

16

43

Cash flow hedges

-56

21

Actuarial gains (losses) on defined benefit plans, before tax

-10

2

Other comprehensive income before tax

188

59

Income tax relating to components of other comprehensive income

22

-6

Other comprehensive income after tax

210

53

Total comprehensive income

1,088

675

– attributable to non-controlling interests

1

1

– attributable to owners of parent

1,087

674

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP

as at June 30, 2010 and December 31, 2009

€ millions

2010

2009

Change in %

Assets

Cash and cash equivalents

3,605

1,884

91

Other financial assets

574

486

18

Trade and other receivables

2,768

2,546

9

Other non-financial assets

217

147

48

Tax assets

202

192

5

Total current assets

7,366

5,255

40

Goodwill

5,136

4,994

3

Intangible assets

829

894

-7

Property, plant, and equipment

1,415

1,371

3

Other financial assets

337

284

19

Trade and other receivables

66

52

27

Other non-financial assets

34

35

-3

Tax assets

125

91

37

Deferred tax assets

364

398

-9

Total non-current assets

8,306

8,119

2

Total assets

15,672

13,374

17

€ millions

2010

2009

Change in %

Equity and liabilities

Trade and other payables

698

638

9

Tax liabilities

3

125

-98

Financial liabilities

219

146

50

Other non-financial liabilities

990

1,577

-37

Provisions

354

332

7

Deferred income

1,919

598

>100

Total current liabilities

4,183

3,416

22

Trade and other payables

34

35

-3

Tax liabilities

259

239

8

Financial liabilities

1,764

729

>100

Other non-financial liabilities

12

12

0

Provisions

224

198

13

Deferred tax liabilities

137

190

-28

Deferred income

88

64

38

Total non-current liabilities

2,518

1,467

72

Total liabilities

6,701

4,883

37

Issued capital

1,227

1,226

0

Treasury shares

-1,349

-1,320

2

Share premium

331

317

4

Retained earnings

8,851

8,571

3

Other components of equity

-104

-317

-67

Equity attributable to owners of parent

8,956

8,477

6

Non-controlling interests

15

14

7

Total equity

8,971

8,491

6

Equity and liabilities

15,672

13,374

17

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY OF SAP GROUP

For the six months ended June 30

€ millions

Other Components of Equity

Issued
Capital

Share
Premium

Retained
Earnings

Exchange
Differences

Available-
for-Sale
Financial
Assets

Cash
Flow
Hedges

Treasury
Shares

Equity
Attributable
to Owners
of Parent

Non-Controlling
Interests

Total
Equity

January 1, 2009

1,226

320

7,423

-395

-1

-42

-1,362

7,169

2

7,171

Profit after tax

621

621

1

622

Other comprehensive income

2

34

1

16

53

53

Share-based compensation

-2

-2

-2

Dividends

-594

-594

-594

Treasury shares transactions

-4

21

17

17

Convertible bonds and stock options exercised

4

4

4

Other

1

1

1

June 30, 2009

1,226

318

7,453

-361

-26

-1,341

7,269

3

7,272

January 1, 2010

1,226

317

8,571

-319

13

-11

-1,320

8,477

14

8,491

Profit after tax

877

877

1

878

Other comprehensive income

-3

255

-1

-41

210

210

Share-based compensation

-1

-1

-1

Dividends

-594

-594

-594

Treasury shares transactions

-5

-113

-118

-118

Convertible bonds and stock options exercised

1

20

84

105

105

June 30, 2010

1,227

331

8,851

-64

12

-52

-1,349

8,956

15

8,971

CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP

as at June 30

€ millions

2010

2009

Profit after tax

878

622

Adjustments to reconcile profit after taxes to net cash provided by operating activities:

Depreciation and amortization

225

253

Gains/losses on disposals of non-current assets

1

3

Impairment loss on financial assets recognized in profit

0

7

Decrease/increase in sales and bad debt allowances on trade receivables

6

97

Other adjustments for non-cash items

15

13

Deferred income taxes

36

-65

Decrease/increase in trade receivables

31

628

Decrease/increase in other assets

-216

-96

Decrease/increase in trade payables, provisions and other liabilities

-802

-687

Decrease/increase in deferred income

1,108

1,048

Net cash flows from operating activities

1,282

1,823

Business combinations, net of cash and cash equivalents acquired

0

-49

Purchase of intangible assets and property, plant, and equipment

-125

-106

Proceeds from sales of intangible assets or property, plant, and equipment

17

13

Purchase of equity or debt instruments of other entities

-651

-573

Proceeds from sales of equity or debt instruments of other entities

689

233

Net cash flows from investing activities

-70

-482

Dividends paid

-594

-594

Purchase of treasury shares

-120

0

Proceeds from reissuance of treasury shares

85

10

Proceeds from issuing shares (share-based compensation)

21

4

Proceeds from borrowings

1,063

697

Repayments of borrowings

-6

0

Purchase of equity-based derivative instruments (hedge for cash-settled share-based payment plans)

-14

0

Proceeds from exercise of equity-based derivative financial instruments

4

4

Net cash flows from financing activities

439

121

Effect of foreign exchange rates on cash and cash equivalents

70

-25

Net decrease/increase in cash and cash equivalents

1,721

1,437

Cash and cash equivalents at the beginning of the period

1,884

1,280

Cash and cash equivalents at the end of the period

3,605

2,717

Supplementary Financial Information

RECONCILIATIONS FROM NON-IFRS NUMBERS TO IFRS NUMBERS

(Preliminary and unaudited)

The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules or principles.

€ millions, unless otherwise stated

Three months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Non-IFRS Revenue Numbers

Software revenue

637

0

637

-66

571

543

0

543

17

17

5

Support revenue

1,526

0

1,526

-88

1,438

1,337

0

1,337

14

14

8

Subscription and other software-related service revenue

95

0

95

-3

92

73

0

73

30

30

26

Software and software-related service revenue

2,258

0

2,258

-157

2,101

1,953

0

1,953

16

16

8

Consulting revenue

528

0

528

-36

492

517

0

517

2

2

-5

Training revenue

71

0

71

-4

67

70

0

70

1

1

-4

Other service revenue

18

0

18

-1

17

23

0

23

-22

-22

-26

Professional services and other service revenue

617

0

617

-41

576

610

0

610

1

1

-6

Other revenue

19

0

19

-1

18

13

0

13

46

46

38

Total revenue

2,894

0

2,894

-199

2,695

2,576

0

2,576

12

12

5

Non-IFRS Operating Expense Numbers

Cost of software and software-related services

-415

41

-374

-400

48

-352

4

6

Cost of professional services and other services

-497

1

-496

-467

1

-466

6

6

Research and development

-397

1

-396

-373

1

-372

6

6

Sales and marketing

-658

15

-643

-561

19

-542

17

19

General and administration

-156

9

-147

-123

0

-123

27

20

Restructuring

-1

0

-1

-17

0

-17

-94

-94

Other operating income/expense, net

4

0

4

6

0

6

-33

-33

Total operating expenses

-2,120

66

-2,054

107

-1,947

-1,935

69

-1,866

10

10

4

Non-IFRS Profit Numbers

Operating profit

774

66

840

-92

748

641

69

710

21

18

5

Other non-operating income/expense, net

-86

11

-75

-22

0

-22

>100

>100

Finance income

11

0

11

8

0

8

38

38

Finance costs

-21

0

-21

-28

0

-28

-25

-25

Other financial gains/losses, net

-2

0

-2

-3

0

-3

-33

-33

Financial income, net

-12

0

-12

-23

0

-23

-48

-48

Profit before tax

676

77

753

596

69

665

13

13

Income tax expense

-185

-17

-202

-170

-17

-187

9

8

Profit after tax

491

60

551

426

52

478

15

15

- Profit attributable to non-controlling interests

0

0

0

1

0

1

-100

-100

- Profit attributable to owners of parent

491

60

551

425

52

477

16

16

Non-IFRS Key Ratios

Operating margin in %

26.7

29.0

27.8

24.9

27.6

1.8pp

1.4pp

0.2pp

Effective tax rate in %

27.4

26.8

28.5

28.1

-1.1pp

-1.3pp

Basic earnings per share, in €

0.41

0.46

0.36

0.40

14

15

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period. See Explanations of Non-IFRS Measures for details.

Differences may exist due to rounding.

€ millions, unless otherwise stated

Six months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Non-IFRS Revenue Numbers

Software revenue

1,101

0

1,101

-81

1,020

962

0

962

14

14

6

Support revenue

2,920

0

2,920

-98

2,822

2,589

11

2,600

13

12

9

Subscription and other software-related service revenue

184

0

184

-2

182

144

0

144

28

28

26

Software and software-related service revenue

4,205

0

4,205

-182

4,023

3,695

11

3,706

14

13

9

Consulting revenue

1,007

0

1,007

-41

966

1,071

0

1,071

-6

-6

-10

Training revenue

130

0

130

-5

125

142

0

142

-8

-8

-12

Other service revenue

37

0

37

0

37

47

0

47

-21

-21

-21

Professional services and other service revenue

1,174

0

1,174

-46

1,128

1,260

0

1,260

-7

-7

-10

Other revenue

24

0

24

-1

23

19

0

19

26

26

21

Total revenue

5,403

0

5,403

-229

5,174

4,974

11

4,985

9

8

4

Non-IFRS Operating Expense Numbers

Cost of software and software-related services

-814

81

-733

-786

99

-687

4

7

Cost of professional services and other services

-948

2

-946

-989

2

-987

-4

-4

Research and development

-790

3

-787

-738

2

-736

7

7

Sales and marketing

-1,215

27

-1,188

-1,074

37

-1,037

13

15

General and administration

-304

9

-295

-262

0

-262

16

13

Restructuring

-1

0

-1

-183

5

-178

-99

-99

Other operating income/expense, net

0

0

0

6

1

7

-100

-100

Total operating expenses

-4,072

121

-3,951

109

-3,842

-4,026

147

-3,879

1

2

-1

Non-IFRS Profit Numbers

Operating profit

1,331

121

1,452

-120

1,332

948

158

1,106

40

31

20

Other non-operating income/expense, net

-122

17

-105

-23

0

-23

>100

>100

Finance income

22

0

22

17

0

17

29

29

Finance costs

-33

0

-33

-53

0

-53

-38

-38

Other financial gains/losses, net

-1

0

-1

-6

0

-6

-83

-83

Financial income, net

-12

0

-12

-42

0

-42

-71

-71

Profit before tax

1,197

138

1,335

883

158

1,041

36

28

Income tax expense

-319

-30

-349

-261

-40

-301

22

16

Profit after tax

878

108

986

622

118

740

41

33

- Profit attributable to non-controlling interests

1

0

1

1

0

1

0

0

- Profit attributable to owners of parent

877

108

985

621

118

739

41

33

Non-IFRS Key Ratios

Operating margin in %

24.6

26.9

25.7

19.1

22.2

5.5pp

4.7pp

3.5pp

Effective tax rate in %

26.6

26.1

29.6

28.9

-3.0pp

-2.8pp

Basic earnings per share, in €

0.74

0.83

0.52

0.62

42

34

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

REVENUE BY REGION

(Preliminary and unaudited)

The following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

€ millions

Three months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Software revenue by region

EMEA

241

0

241

-7

234

266

0

266

-9

-9

-12

Americas

269

0

269

-39

230

164

0

164

64

64

40

Asia Pacific Japan

127

0

127

-20

107

114

0

114

11

11

-6

Software revenue

637

0

637

-66

571

543

0

543

17

17

5

Software and software-related service revenue by region

Germany

360

0

360

0

360

329

0

329

9

9

9

Rest of EMEA

718

0

718

-26

692

701

0

701

2

2

-1

Total EMEA

1,078

0

1,078

-25

1,053

1,030

0

1,030

5

5

2

United States

616

0

616

-49

567

481

0

481

28

28

18

Rest of Americas

207

0

207

-33

174

158

0

158

31

31

10

Total Americas

822

0

822

-81

741

639

0

639

29

29

16

Japan

111

0

111

-14

97

107

0

107

4

4

-9

Rest of Asia Pacific Japan

247

0

247

-37

210

178

0

178

39

39

18

Total Asia Pacific Japan

358

0

358

-51

307

285

0

285

26

26

8

Software and software-related service revenue

2,258

0

2,258

-157

2,101

1,953

0

1,953

16

16

8

Total revenue by region

Germany

506

0

506

0

506

463

0

463

9

9

9

Rest of EMEA

884

0

884

-32

852

882

0

882

0

0

-3

Total EMEA

1,390

0

1,390

-32

1,358

1,345

0

1,345

3

3

1

United States

802

0

802

-62

740

663

0

663

21

21

12

Rest of Americas

275

0

275

-43

232

214

0

214

29

29

8

Total Americas

1,077

0

1,077

-106

971

877

0

877

23

23

11

Japan

125

0

125

-16

109

126

0

126

-1

-1

-13

Rest of Asia Pacific Japan

302

0

302

-45

257

229

0

229

32

32

12

Total Asia Pacific Japan

427

0

427

-61

366

355

0

355

20

20

3

Total revenue

2,894

0

2,894

-199

2,695

2,576

0

2,576

12

12

5

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

€ millions

Six months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Software revenue by region

EMEA

459

0

459

-14

445

472

0

472

-3

-3

-6

Americas

440

0

440

-40

400

316

0

316

39

39

27

Asia Pacific Japan

201

0

201

-26

175

174

0

174

16

16

1

Software revenue

1,101

0

1,101

-81

1,020

962

0

962

14

14

6

Software and software-related service revenue by region

Germany

671

0

671

-1

670

605

0

605

11

11

11

Rest of EMEA

1,409

0

1,409

-45

1,364

1,307

4

1,311

8

7

4

Total EMEA

2,079

0

2,079

-44

2,035

1,912

4

1,916

9

9

6

United States

1,087

0

1,087

-23

1,064

941

6

947

15

15

12

Rest of Americas

399

0

399

-46

353

312

0

312

28

28

13

Total Americas

1,485

0

1,485

-68

1,417

1,253

6

1,259

19

18

13

Japan

208

0

208

-14

194

203

0

204

3

2

-5

Rest of Asia Pacific Japan

432

0

432

-54

378

326

0

327

33

32

16

Total Asia Pacific Japan

641

0

641

-69

572

530

1

530

21

21

8

Software and software-related service revenue

4,205

0

4,205

-182

4,023

3,695

11

3,706

14

13

9

Total revenue by region

Germany

949

0

949

0

949

895

0

896

6

6

6

Rest of EMEA

1,743

0

1,743

-56

1,687

1,673

4

1,676

4

4

1

Total EMEA

2,692

0

2,692

-56

2,636

2,568

4

2,572

5

5

2

United States

1,422

0

1,422

-27

1,395

1,313

6

1,319

8

8

6

Rest of Americas

522

0

522

-62

460

425

0

425

23

23

8

Total Americas

1,944

0

1,944

-89

1,855

1,738

6

1,744

12

11

6

Japan

235

0

235

-15

220

246

0

246

-4

-4

-11

Rest of Asia Pacific Japan

531

0

531

-68

463

422

0

423

26

26

9

Total Asia Pacific Japan

767

0

767

-84

683

668

1

669

15

15

2

Total revenue

5,403

0

5,403

-229

5,174

4,974

11

4,985

9

8

4

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

SHARE-BASED COMPENSATION

(Preliminary and unaudited)

€ millions

Six months ended June 30

2010

2009

Change in %

Share-based compensation per expense line item

Cost of software and software-related services

0

2

-100

Cost of professional services and other services

1

4

-75

Research and development

8

7

14

Sales and marketing

4

4

0

General and administration

4

3

33

Total share-based compensation

17

20

-15

Note: The share-based compensation expenses do not differ between SAP’s IFRS and non-IFRS measures.

Differences may exist due to rounding.

FREE CASH FLOW

(Preliminary and unaudited)

€ millions

Six months ended June 30

2010

2009

Change in %

Net cash flows from operating activities

1,282

1,823

-30

Additions to non-current assets excluding additions from acquisitions

-125

-106

18

Free cash flow

1,157

1,717

-33

Differences may exist due to rounding.

DAYS SALES OUTSTANDING

(Unaudited)

as at June 30, 2010 and December 31, 2009

2010

2009

Change in days

Days sales outstanding in days*

73

79

-6

* Day Sales Outstanding (DSO) measures the length of time it takes to collect receivables. SAP calculates
DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average
monthly sales of the last 12 months.

NUMBER OF EMPLOYEES (in Full-Time Equivalents)

June 30, 2010

June 30, 2009

EMEA

Americas

Asia Pacific Japan

Total

EMEA

Americas

Asia Pacific Japan

Total

Software and software-related services

3,479

1,422

2,100

7,001

3,238

1,239

1,840

6,317

Professional services and other services

6,407

3,544

2,243

12,194

6,916

3,597

2,358

12,871

Research and Development

8,288

2,458

3,600

14,346

8,620

2,553

3,889

15,062

Sales & Marketing

4,216

3,704

1,811

9,731

4,320

3,600

1,808

9,728

General & Administration

1,891

717

418

3,026

1,945

750

418

3,113

Infrastructure

1,044

471

208

1,723

888

409

179

1,476

SAP Group (June 30)

25,325

12,316

10,380

48,021

25,927

12,148

10,492

48,567

SAP Group (average H1)

25,314

12,117

10,304

47,735

26,422

12,712

10,877

50,011

MULTI-QUARTER SUMMARY

(IFRS and non-IFRS; preliminary und unaudited)

€ millions, unless otherwise stated

Q2/2010

Q1/2010

Q4/2009

Q3/2009

Q2/2009

Q1/2009

Software revenue (IFRS)

637

464

1,120

525

543

418

Revenue adjustment*

0

0

0

0

0

0

Software revenue (non-IFRS)

637

464

1,120

525

543

418

Support revenue (IFRS)

1,526

1,394

1,364

1,333

1,337

1,252

Revenue adjustment*

0

0

0

0

0

11

Support revenue (non-IFRS)

1,526

1,394

1,364

1,333

1,337

1,263

Subscription and other software-related service revenue (IFRS)

95

89

82

79

73

71

Revenue adjustment*

0

0

0

0

0

0

Subscription and other software-related service revenue (non-IFRS)

95

89

82

79

73

71

Software and software-related service revenue (IFRS)

2,258

1,947

2,566

1,937

1,953

1,741

Revenue adjustment*

0

0

0

0

0

11

Software and software-related service revenue (non-IFRS)

2,258

1,947

2,566

1,937

1,953

1,752

Total revenue (IFRS)

2,894

2,509

3,190

2,508

2,576

2,397

Revenue adjustment*

0

0

0

0

0

11

Total revenue (non-IFRS)

2,894

2,509

3,190

2,508

2,576

2,408

Operating profit (IFRS)

774

557

1,022

619

641

307

Revenue adjustment*

0

0

0

0

0

11

Expense adjustment*

66

54

113

68

69

78

Operating profit (non-IFRS)

840

612

1,134

687

710

396

Operating margin (IFRS)

26.7

22.2

32.0

24.7

24.9

12.8

Operating margin (non-IFRS)

29.0

24.4

35.5

27.4

27.6

16.4

Effective tax rate (IFRS)

27.4

25.7

31.1

20.5

28.5

31.7

Effective tax rate (non-IFRS)

26.8

25.3

30.5

21.0

28.1

30.1

Basic earnings per share, in € (IFRS)

0.41

0.33

0.57

0.38

0.36

0.17

Basic earnings per share, in € (non-IFRS)

0.46

0.37

0.64

0.42

0.40

0.22

Headcount**

48,021

47,598

47,584

47,810

48,567

49,922

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but
that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line
items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures for details.

** in full-time equivalents at quarter end

Differences may exist due to rounding.

EXPLANATIONS OF NON-IFRS MEASURES

This document discloses certain financial measures, such as non-IFRS revenues, non-IFRS expenses, non-IFRS operating income, non-IFRS operating margin, non-IFRS net income, non-IFRS earnings per share, free cash flow as well as constant currency revenue and operating income measures that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. Our non-IFRS financial measures may not correspond to non-IFRS financial measures that other companies report. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS. Our non-IFRS financial measures included in this document are reconciled to the nearest IFRS measure in the tables on the pages F8 to F13 above.

We believe that the supplemental historical and prospective non-IFRS financial information presented here provides useful supplemental information to investors because it is the same information used by our management in running our business and making financial, strategic and operational decisions – in addition to financial data prepared in accordance with IFRS – to attain a more transparent understanding of our past performance and our future results. The non-IFRS measures as defined below replaced the Non GAAP measures which we used until the termination of our US GAAP reporting. We use these non-IFRS measures consistently in our planning and forecasting, reporting, compensation and external communication. Specifically,

* Our management primarily uses these non-IFRS measures rather than IFRS measures as the basis for making financial, strategic and operating decisions.
* The variable remuneration components of our board members and employees are based on revenue and operating profit. However, the basis for the compensation is on non-IFRS revenue and non-IFRS operating profit rather than the respective IFRS measures.
* The annual budgeting process involving all management units is based on non-IFRS revenues and non-IFRS operating income numbers rather than IFRS numbers with costs such as share-based compensation and restructuring only being considered on corporate level.
* All monthly forecast and performance reviews with all senior managers globally are based on these non-IFRS measures, rather than IFRS numbers.
* Both, company-internal target setting and guidance provided to the capital markets are based on non-IFRS revenues and non-IFRS income measures rather than IFRS numbers.

We believe that our non-IFRS measures are useful to investors for the following reasons:

* The non-IFRS measures provide investors with insight into management’s decision-making since management uses these non-IFRS measures to run our business and make financial, strategic and operating decisions.
* The non-IFRS measures provide investors with additional information that enables a comparison of year-over-year operating performance by eliminating certain direct effects of acquisitions.

Our non-IFRS financial measures reflect adjustments based on the items below, as well as the related income tax effects:

Non-IFRS revenue:

Revenues in this document identified as non-IFRS revenue have been adjusted from the respective IFRS numbers by including the full amount of support revenue that would have been recorded by an entity acquired by SAP had it remained a stand-alone entity but which we are not permitted to record as revenue under IFRS due to fair value accounting for the support contracts in effect at the time of the respective acquisition.

Under IFRS, we record at fair value the support contracts in effect at the time an entity was acquired. Consequently, our IFRS support revenue, our IFRS software and software-related service revenue and our IFRS total revenue for periods subsequent to acquisitions do not reflect the full amount of support revenue that would have been recorded for these support contracts absent the acquisition by SAP. Adjusting revenue numbers for this revenue impact (if significant) provides additional insight into the comparability across periods of our ongoing performance.

Non-IFRS operating expense:

Operating expense figures in this report that are identified as non-IFRS operating expense have been adjusted by excluding the following acquisition-related charges:

* Acquisition related charges
o Amortization expense/impairment charges of intangibles acquired in business combinations and certain standalone acquisitions of intellectual property (including purchased in-process research and development)
o Restructuring expenses and settlements of pre-existing relationships incurred in connection with a business combination
o Acquisition-related third-party expenses
* Discontinued Activities: Results of the discontinued operations that qualify as such under IFRS in all respects except that they do not represent a major line of business

Non-IFRS operating income, non-IFRS operating margin, non-IFRS net income and non-IFRS earnings per share:

Operating income, operating margin, net income and earnings per share in this document identified as non-IFRS operating income, non-IFRS operating margin, non-IFRS net income and non-IFRS earnings per share have been adjusted from the respective operating income, operating margin, net income and earnings per share numbers as recorded under IFRS by adjusting for the above mentioned non-IFRS revenues and non-IFRS expenses.

We exclude the acquisition related expense adjustments for the purpose of calculating non-IFRS operating income, non-IFRS operating margin, non-IFRS net income and non-IFRS earnings per share when evaluating the continuing operational performance of the Company because these expenses generally cannot be changed or influenced by management after the relevant acquisition other than by disposing of the acquired assets. Since management at levels below the Executive Board has no influence on these expenses we generally do not consider these expenses for the purpose of evaluating the performance of management units.

We include the revenue adjustements outlined above and exclude the expense adjustements when making decisions to allocate resources, both on a Company level and at lower levels of the organization. In addition, we use these non-IFRS measures to gain a better understanding of the Company’s comparative operating performance from period to period. We believe that our non-IFRS financial measures described above have limitations, which include but are not limited to the following:

* The eliminated amounts may be material to us.
* Without being analyzed in conjunction with the corresponding IFRS measures the non-IFRS measures are not indicative of our present and future performance, foremost for the following reasons:
o While our non-IFRS income numbers reflect the elimination of certain acquisition-related expenses, no eliminations are made for the additional revenues and other revenues that result from the acquisitions.
o The acquisition-related charges that we eliminate in deriving our non-IFRS income numbers are likely to recur should SAP enter into material business combinations in the future.
o The acquisition-related amortization expense that we eliminate in deriving our non-IFRS income numbers is a recurring expense that will impact our financial performance in future years.
o The revenue adjustment for the fair value accounting of the acquired entities’ support contracts and the expense adjustment for acquisition-related charges do not arise from a common conceptual basis. This is because the revenue adjustment aims to improve the comparability of the initial post-acquisition period with future post-acquisition periods while the expense adjustment aims to improve the comparability between post-acquisition periods and pre-acquisition periods. This should particularly be considered when evaluating our non-IFRS operating income and non-IFRS operating margin numbers as these combine our non-IFRS revenue and non-IFRS expenses despite the absence of a common conceptual basis.

Additionally, our non-IFRS measures have been adjusted from the respective IFRS numbers for the results of the discontinued operations that qualify as such under IFRS in all respects except that they do not represent a major line of business. We refer to these activities as “discontinued activities.” Under our U.S. GAAP which we provided until 2009, we presented the results of operations of the TomorrowNow entities as discontinued operations. Under IFRS, results of discontinued operations may only be presented as discontinued operations if a separate major line of business or geographical area of operations is discontinued. Our TomorrowNow operations were not a separate major line of business and thus did not qualify for separate presentation under IFRS. We believe that this additional non-IFRS adjustment to our IFRS numbers for the results of our discontinued TomorrowNow activities is useful to investors for the following reasons:

* Despite the migration from U.S. GAAP to IFRS, we will continue to internally view the ceased TomorrowNow activities as discontinued activities and thus will continue to exclude potential future TomorrowNow results, which are expected to mainly comprise of expenses in connection with the Oracle lawsuit, from our internal management reporting, planning, forecasting, and compensation plans. Therefore, adjusting our non-IFRS measures for the results of the discontinued TomorrowNow activities provides insight into the financial measures that SAP will use internally beginning in 2010 with our migration to IFRS.
* By adjusting the non-IFRS numbers for the results from our discontinued TomorrowNow operations, the non-IFRS numbers are more comparable to the non-GAAP measures that SAP used through the end of 2009, which makes SAP’s performance measures before and after the full IFRS migration easier to compare.

We believe, however, that the presentation of the non-IFRS measures in conjunction with the corresponding IFRS measures as well as the relevant reconciliations, provides useful information to management and investors regarding present and future business trends relating to our financial condition and results of operations. We therefore do not evaluate our growth and performance without considering both non-IFRS measures and the relevant IFRS measures. We caution the readers of this document to follow a similar approach by considering our non-IFRS measures only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with IFRS.

Free Cash Flow

We use our free cash flow measure to estimate the cash flow remaining after all expenditures required to maintain or expand the organic business have been paid off. This assists management with the supplemental information to assess our liquidity needs. We calculate free cash flow as net cash from operating activities minus additions to non-current assets, excluding additions from acquisitions. Free cash flow should be considered in addition to, and not as a substitute for or superior to, cash flow or other measures of liquidity and financial performance prepared in accordance with IFRS.

Constant Currency Period-Over-Period Changes

We believe it is important for investors to have information that provides insight into our sales. Revenue measures determined under IFRS provide information that is useful in this regard. However, both sales volume and currency effects impact period-over-period changes in sales revenue. We do not sell standardized units of products and services, so we cannot provide relevant information on sales volume by providing data on the changes in product and service units sold. To provide additional information that may be useful to investors in breaking down and evaluating changes in sales volume, we present information about our revenue and various values and components relating to operating income that are adjusted for foreign currency effects. We calculate constant currency year-over-year changes in revenue and operating income by translating foreign currencies using the average exchange rates from the previous year instead of the report year.

We believe that data on constant currency period-over-period changes has limitations, particularly as the currency effects that are eliminated constitute a significant element of our revenue and expenses and may severely impact our performance. We therefore limit our use of constant currency period-over-period changes to the analysis of changes in volume as one element of the full change in a financial measure. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-IFRS revenue and non-IFRS operating income on the one hand and changes in revenue, expenses, income, or other measures of financial performance prepared in accordance with IFRS on the other. We caution the readers of this document to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue, expenses, income, or other measures of financial performance prepared in accordance with IFRS.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Coca-Cola FEMSA S.A.B. de C.V. Announces 2010 Second-Quarter and First Six-Month Results

July 24, 2010 By Leave a Comment

MEXICO CITY, Jul 23 (MARKET WIRE) —
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF) (BMV: KOFL) (“Coca-Cola
FEMSA” or the “Company”), the Largest Coca-Cola Bottler in Latin America
in Terms of Sales Volume, Announces Results for the Second Quarter of
2010.

– Total revenues reached Ps. 25,177 million in the second quarter of
2010, an increase of 4.1% compared to the second quarter of 2009;
mainly driven by double-digit total revenue growth in our Mercosur
division and a high single-digit total revenue growth in our Mexico
division. On a currency neutral basis and excluding the acquisition of
Brisa in Colombia, total revenues grew approximately 16%.
– Consolidated operating income grew 11.2% to Ps. 4,088 million for the
second quarter of 2010, driven by operating income growth recorded in
every division. Our operating margin was 16.2% in the second quarter
of 2010.
– Consolidated net controlling interest income increased 14.8% to Ps.
2,480 million in the second quarter of 2010, mainly reflecting higher
operating income, resulting in earnings per share of Ps. 1.34 in the
second quarter of 2010.

“Despite recent global economic volatility, our geographically
balanced portfolio of franchise territories across Latin America
delivered strong results for the quarter. Our Mexico and Mercosur
divisions achieved significant top-line growth, driven by solid volume
growth and tactical price increases implemented throughout our
operations. Demonstrating its continued strength and consumer popularity
throughout our territories, the Coca-Cola brand made a substantial
contribution to our Company’s incremental volumes. We are pleased to
serve a growing base of customers and consumers in one of the best
markets in which to sell beverages worldwide, Latin America. During the
quarter, we paid our shareholders a dividend of Ps. 2,612 million, an
important increase over the preceding year — which extended our track
record of rising dividend payments to seven years in a row. We believe
that our Company has the right tools, talents, and capabilities to
continue driving successfully our business going forward,” said Carlos
Salazar Lomelin, Chief Executive Officer of the Company.

CONFERENCE CALL INFORMATION
Our second-quarter 2010 Conference Call will
be held on: July 23, 2010, at 11:00 A.M. Eastern Time (10:00 A.M. Mexico
City Time). To participate in the conference call, please dial: Domestic
U.S.: 866-700-7477 or International: 617-213-8840. We invite investors to
listen to the live audio cast of the conference call on the Company’s
website, www.coca-colafemsa.com

If you are unable to participate live, an instant replay of the
conference call will be available through July 30, 2010. To listen to the
replay, please dial: Domestic U.S.: 888-286-8010 or International:
617-801-6888. Pass code: 23786500.

Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola,
Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola
Company in Mexico (a substantial part of central Mexico, including Mexico
City and southeast Mexico), Guatemala (Guatemala City and surrounding
areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama
(nationwide), Colombia (most of the country), Venezuela (nationwide),
Brazil (greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do
Sul, part of the state of Goias and part of the state of Minas Gerais)
and Argentina (federal capital of Buenos Aires and surrounding areas),
along with bottled water, beer and other beverages in some of these
territories. The Company has 31 bottling facilities in Latin America and
serves over 1,500,000 retailers in the region. The Coca-Cola Company owns
a 31.6% equity interest in Coca-Cola FEMSA.

Please click on this link to view the full version of the Press Release
on our Web Site

http://www.coca-colafemsa.com

Roland Karig
Investor Relations KOF
+52-55-50-81-51-86
roland.karig@kof.com.mx
www.coca-colafemsa.com

Copyright 2010, Market Wire, All rights reserved.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Saab’s Result for January-June 2010

July 24, 2010 By Leave a Comment

Defence and Security Company Saab Releases the Interim Report for January-June
2010
STOCKHOLM–(Business Wire)–
Saab (STO:SAABB):

Results January – June 2010:

* Order bookings amounted to MSEK 10,516 (8,096) and the order backlog at the
end of the period amounted to SEK 38.9 billion (42.4 billion)
* Sales decreased by 3 percent to MSEK 11,377 (11,695), also adjusted for
exchange rate effects
* Gross income amounted to MSEK 2,712 (3,037), corresponding to a gross margin
of 23.8 percent (26.0). Adjusted for non-recurring items, the gross margin was
24.4 percent (25.3)
* Operating income was MSEK 402 (622), corresponding to an operating margin of
3.5 percent (5.3). Adjusted for non-recurring items, the operating margin was
4.5 percent (4.9). Recurring figures included charges of MSEK 290, mainly
related to a terminated contract in Security and Defence Solutions
* Net income was MSEK 246 (265), with earnings per share after dilution of SEK
2.25 (2.46)
* Operating cash flow amounted to MSEK 2,233 (-243) • The outlook for 2010 has
changed

Changed outlook for 2010:

We remain cautious regarding order intake and foresee sales and profitability at
about the same level as 2009. Our long-term financial targets remain.

Previous outlook: We remain cautious regarding order intake and foresee sales on
the same level as 2009. Due to the effect of continued business improvement
activities we expect profitability to increase. Our long-term financial targets
remain.

Financial highlights

MSEK Jan-Jun Jan-Jun Change, Apr-Jun Apr-Jun Jan-Dec
2010 2009 % 2010 2009 2009
Order bookings 10,516 8,096 30 5,038 3,995 18,428
Order backlog 38,859 42,414 -8 -695** -1,744** 39,389
Sales 11,377 11,695 -3 5,993 6,283 24,647
Operating income (EBIT) 402 622 -35 276 472 1,374
Operating margin, % 3.5 5.3 4.6 7.5 5.6
Adjusted operating margin, * % 4.5 4.9 5.7 6.7 5.4
Net income 246 265 -7 174 292 699
Earnings per share before dilution, SEK 2.33 2.51 1.68 2.75 6.45
Earnings per share after dilution, SEK 2.25 2.46 1.62 2.69 6.28
Return on equity,*** % 6.5 -5.3 7.0
Operating cash flow 2,233 -243 – 2,306 213 1,447
Operating cash flow per share after dilution, SEK 20.46 -2.23 21.13 1.95 13.26
* Adjusted for non-recurring items impacting operating income, for more information see page 4 -110 50 -68 50 50
** Refers to quarterly change
*** The return on equity is measured over a rolling 12-month period

Statement by the president and CEO:

“Order bookings increased for several of our business areas during the first
half-year, even though we still see some delays in customer decision making
processes. Sales were at the expected level and the operating cash flow was
strong as a result of our business activities being delivered according to plan.

Profitability was negatively impacted by a terminated contract in our civil
security business and lower capacity utilization pending larger orders. As a
consequence, we change our outlook for 2010. Previously we estimated
profitability to increase compared to 2009, whereas now the profitability is
expected to remain at about the same level as in 2009.

Our strategy, focusing on value creation by delivering on our strategic
priorities to increase our market focus, create a more focused portfolio and
more efficient operations, remain firm,” says President and CEO Åke Svensson.

Press and analysts meeting

Press and analysts are invited to a presentation of the Interim Report by CEO
Åke Svensson and CFO Lars Granlöf. The meeting is held in Stockholm at World
Trade Center conference center, 4th floor, entrance from Klarabergsviadukten 70
or Kungsbron 1, friday, 23 July, 10.00 am C.E.T

Live webcast

If you are unable to attend in person, please visit
http://www.saabgroup.com/en/InvestorRelations where a live webcast will be
available together with the presentation material. All viewers will be able to
post questions to the presenters. The webcast will also be available at Saab`s
website afterwards.

For streaming and broadcast-standard video, please visit
www.thenewsmarket.com/saab. If you are a first-time user, please take a moment
to register. In case you have any questions, please e-mail
journalisthelp@thenewsmarket.com.

The information is that which Saab AB is required to declare by the Securities
Business Act and/or the Financial instruments Trading Act. The information was
submitted for publication on July 23 at 07.30.

Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has operations
and employees on all continents and constantly develops, adopts and improves new
technology to meet customers` changing needs.

This information was brought to you by Cision http://www.cisionwire.com

For further information, please contact:
Saab Press Centre, 46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, 46 (0)734 187 214
presscentre@saabgroup.com
www.saabgroup.com

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-BioMerieux blames austerity for sales target cut

July 23, 2010 By Leave a Comment

PARIS, July 22 (Reuters) – French in-vitro diagnostics company BioMerieux (BIOX.PA) cut its 2010 sales growth target to 6 percent from 7 percent on Thursday partly due to healthcare budget cuts in Western Europe as austerity measures take hold.

BioMerieux, which supplies systems used to diagnose infectious diseases and analyse samples, said it was sticking to its 2010 operating margin target of 17-18 percent.

In addition to healthcare budget cuts, Chief Executive Stephane Bancel also blamed the end of the H1N1 “swine flu” pandemic and the low incidence of seasonal flu for the target cut.

The company, which has a market value of 3.5 billion euros ($4.47 billion), said on Thursday that net sales for the first half of 2010 rose 6 percent year-on-year to 651 million euros.

Although growth was flat in Western Europe in the first half, with laboratories sharply cutting back on spending, regions such as the Middle East, Africa and Asia boosted sales.

BioMerieux has been expanding its innovation and international development through bolt-on acquisitions in China and partnerships with companies like Philips Electronics (PHG.AS) to develop fully automated handheld diagnostic tests for hospital use.

The company bought a 10 percent stake in U.S. human genomics company Knome in April. It signed an agreement with GlaxoSmithKline (GSK.L) in May to develop a novel molecular test for cancer. ($1=.7838 Euro) (Reporting by Lionel Laurent; Editing by James Regan)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

WRAPUP 1-Faurecia, Plastic Omnium upbeat after strong H1

July 23, 2010 By Leave a Comment

PARIS, July 22 (Reuters) – French car parts maker Faurecia (EPED.PA) raised its full-year targets on Thursday while smaller supplier Plastic Omnium (PLOF.PA) made upbeat comments about the coming months as rising car demand boosted first-half results.

Carmakers and suppliers hurt by a deep industry crisis and a dramatic sales slump have benefited in recent months from scrappage schemes and rising emerging market sales, combined with an underlying recovery in economic activity in Europe.

Faurecia, which makes seats, exhausts and emissions control systems for carmakers including BMW (BMWG.DE) and Opel [GM.UL], said it saw product sales up 13-16 percent for the full year, compared with a previous target of a 4 percent rise.

Faurecia said it was aiming for over 340 million euros in operating income in the year as a whole, compared with an earlier target of over 200 million. Net cash flow would be over 100 million euros, rather than simply “positive”, it added.

Chief Executive Yann Delabriere told BFM Radio he expected the group to post a net profit for the year.

“We can easily imagine that the net profit will remain comfortably positive for the year as a whole,” he said.

Analysts had predicted first-half sales from car suppliers and carmakers would be strong, but warned there were still doubts about the second half as scrapping schemes fade and austerity measures kick in. [ID:nLDE66F083]

Plastic Omnium had a first-half net profit of 72.3 million euros, up from 8 million in the first half of 2009 and more than double the 31 million euros it posted in the full year.

The first-half operating margin reached 7.3 percent, compared with 3 percent in the first half last year. The group is expecting business to remain “dynamic” in the second half, it said in a statement.

Faurecia, 57.4 percent-owned by French carmaker PSA Peugeot Citroen (PEUP.PA), posted a 33.2 percent like-for-like rise in product sales in the first half to 5.4 billion euros. Overall sales rose 26.9 percent like-for-like to 6.8 billion.

Operating income swung to a 216.5 million euro profit from a 187.3 million euro loss in the first half of 2009. Net income reached 101.9 million euros, against a 364.6 million net loss.

The group said second-half sales would likely fall 5-8 percent in Europe. Sales soared in the second half of last year with scrapping schemes in full swing, providing an unfavourable basis for comparison.

Sales in the second half are set to rise 11-14 percent in North America and surge 20-25 percent in Asia, Faurecia said.

Faurecia last month set out ambitious growth and profitability targets and said it wanted to speed up development in Asia. [ID:nLDE65D11I]

For a story on truckmaker Volvo see [ID:nLDE66L06A]

(Reporting by Helen Massy-Beresford; Additional Reporting by Gilles Guillaume; Editing by James Regan and Michael Shields)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

WRAPUP 1-Faurecia, Plastic Omnium upbeat after strong H1

July 23, 2010 By Leave a Comment

PARIS, July 22 (Reuters) – French car parts maker Faurecia (EPED.PA) raised its full-year targets on Thursday while smaller supplier Plastic Omnium (PLOF.PA) made upbeat comments about the coming months as rising car demand boosted first-half results.

Carmakers and suppliers hurt by a deep industry crisis and a dramatic sales slump have benefited in recent months from scrappage schemes and rising emerging market sales, combined with an underlying recovery in economic activity in Europe.

Faurecia, which makes seats, exhausts and emissions control systems for carmakers including BMW (BMWG.DE) and Opel [GM.UL], said it saw product sales up 13-16 percent for the full year, compared with a previous target of a 4 percent rise.

Faurecia said it was aiming for over 340 million euros in operating income in the year as a whole, compared with an earlier target of over 200 million. Net cash flow would be over 100 million euros, rather than simply “positive”, it added.

Chief Executive Yann Delabriere told BFM Radio he expected the group to post a net profit for the year.

“We can easily imagine that the net profit will remain comfortably positive for the year as a whole,” he said.

Analysts had predicted first-half sales from car suppliers and carmakers would be strong, but warned there were still doubts about the second half as scrapping schemes fade and austerity measures kick in. [ID:nLDE66F083]

Plastic Omnium had a first-half net profit of 72.3 million euros, up from 8 million in the first half of 2009 and more than double the 31 million euros it posted in the full year.

The first-half operating margin reached 7.3 percent, compared with 3 percent in the first half last year. The group is expecting business to remain “dynamic” in the second half, it said in a statement.

Faurecia, 57.4 percent-owned by French carmaker PSA Peugeot Citroen (PEUP.PA), posted a 33.2 percent like-for-like rise in product sales in the first half to 5.4 billion euros. Overall sales rose 26.9 percent like-for-like to 6.8 billion.

Operating income swung to a 216.5 million euro profit from a 187.3 million euro loss in the first half of 2009. Net income reached 101.9 million euros, against a 364.6 million net loss.

The group said second-half sales would likely fall 5-8 percent in Europe. Sales soared in the second half of last year with scrapping schemes in full swing, providing an unfavourable basis for comparison.

Sales in the second half are set to rise 11-14 percent in North America and surge 20-25 percent in Asia, Faurecia said.

Faurecia last month set out ambitious growth and profitability targets and said it wanted to speed up development in Asia. [ID:nLDE65D11I]

For a story on truckmaker Volvo see [ID:nLDE66L06A]

(Reporting by Helen Massy-Beresford; Additional Reporting by Gilles Guillaume; Editing by James Regan and Michael Shields)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Cision: Interim Report January-June 2010

July 23, 2010 By Leave a Comment

Continued improvement in profitability
STOCKHOLM–(Business Wire)–
April-June

* The Group`s operating revenue amounted to SEK 285 million (377). Organic
growth was negative at 5 percent, compared with negative 8 percent for
January-March 2010 and negative 12 percent for April-June 2009. Exchange rate
effects decreased revenue by SEK 11 million compared with the same period last
year.
* Operating profit excluding restructuring costs amounted to SEK 35 million
(30). Exchange rate effects had a negative impact on operating profit of SEK 1
million compared with the same period last year.
* Following mainly the successful divestment of loss-making businesses in
Europe, Cision`s operating margin excluding restructuring costs continued to
strengthen in the second quarter, reaching 12.2 percent compared with 10.4
percent in the first quarter of 2010 and 7.9 percent in the second quarter last
year.
* Cision US returned to organic growth of 3% in the second quarter, following
negative organic growth of 4% in the first quarter of 2010 and negative 10% for
2009.

January-June

* The Group`s operating revenue amounted to SEK 599 million (837). Organic
growth was negative at 7 percent (-10). Exchange rate effects decreased revenue
by SEK 45 million.
* Operating profit excluding restructuring costs amounted to SEK 68 million (48)
and the operating margin excluding restructuring costs was 11.3 percent (5.7).
Exchange rate effects had a negative impact on operating profit of SEK 6 million
compared with the same period last year.
* Operating profit including restructuring costs amounted to SEK 62 million (33)
and profit before tax was SEK 39 million (-14). Earnings per share were SEK 0.20
(-0.28).
* For the period January-June, operating cash flow amounted to SEK -3 million
(19) and free cash flow amounted to SEK -71 million (-56).

Comment by Cision CEO Hans Gieskes: “In the second quarter of 2010, we were
pleased to see continued improvement in profitability. Our EBITDA margin
exceeded 17 percent, up from 15 percent in the first quarter of 2010, indicating
that we are on track toward achieving our financial target of an EBITDA margin
exceeding 20 percent by 2012 at the latest. The improvement in profitability was
mainly driven by stronger performance in Cision Europe, where the EBITDA margin
increased significantly from 5 percent in the first quarter to 11 percent in the
second quarter of 2010. Our North American business also continued to do well,
delivering a very solid 25 percent EBITDA margin in the second quarter.

In the second quarter, we continued to see positive effects from the launch of
CisionPoint as our most important business, Cision US, returned to organic
growth. The share of customers on the CisionPoint platform in the US has now
reached 78 percent as of June 30, 2010, compared with 48 percent one year ago.
As we continue to roll out CisionPoint in our other markets, we remain confident
in the long-term growth prospects for Cision.”

Cision empowers businesses to make better decisions and improve performance
through its CisionPoint software solutions for corporate communication and PR
professionals. Powered by local experts with global reach, Cision delivers
relevant media information, targeted distribution, media monitoring, and precise
media analysis. Cision has offices in Europe, North America and Asia, and has
partners in 125 countries. Cision AB is quoted on the Nordic Exchange with a
turnover of SEK 1.5 billion in 2009.

This information was brought to you by Cision http://www.cisionwire.com

Hans Gieskes, President and CEO
telephone +46 (0)8 507 410 11
e-mail: hans.gieskes@cision.com
or
Erik Forsberg, CFO
telephone +46 (0)8 507 410 91
e-mail: erik.forsberg@cision.com
Cision AB (publ)
Corp Identity No. SE556027951401
Telephone: +46 (0)8 507 410 00

http://corporate.cision.com

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Net Insight AB: Interim report January – June 2010

July 23, 2010 By Leave a Comment

NET INSIGHT
INTERIM REPORT JANUARY – JUNE 2010

Net Insight AB [publ] Corporate Reg. No 556533-4397

Second Quarter 2010

· Net sales of SEK 71.5 million (62.6).

· Software license and support revenue of SEK 19.0 million (15.3).

· Gross Margin of 74.3% (78.7) applying the same accounting treatment as in
previous years.

· Gross Margin of 66.4% (78.7).

· Operating earnings of SEK 11.9 million (11.0), corresponding to an operating
margin of 16.6% (17.6).

· Net income of SEK 8.7 million (7.9).

· Net profit margin of 12.2% (12.7).

· Earnings per share of SEK 0.02 (0.02).

· Total cash flow of SEK 3.3 million (-34.5).

January – June 2010

· Net sales of SEK 132.0 million (123.1).

· Software license and support revenue of SEK 34.8 million (32.2).

· Gross Margin of 74.5% (77.2) applying the same accounting treatment as in
previous years.

· Gross Margin of 66.1% (77.2).

· Operating earnings of SEK 18.1 million (21.3), corresponding to an operating
margin of 13.7% (17.3).

· Net income of SEK 72.7 million (15.1). The improvement is a one-time effect
related to the IPR transaction in Q1.

· Net profit margin of 55.1% (12.3).

· Earnings per share of SEK 0.19 (0.04).

· Total cash flow of SEK 56.4 million (-13.5).

A strong quarter with revenue growth of 14%

We are delivering a strong second quarter both from a financial and strategic
perspective.
Revenue is up with 14% compared to last year and 18% from the first quarter 2010. We
also see a healthy operating margin of 17%.

For the first half of the year, the operating earnings are slightly down compared to
last year, as a result of increased investments in sales and marketing. This in turn has
led to an increased order flow and more business opportunities.

The company is progressing well towards our strategic objectives to leverage our DTT
leadership, to expand our business in broadcast and media as well as finding new
business in the area of CATV/IPTV.

I am very proud to count six important DTT wins over the past six months. We just
recently, in the middle of July, announced a very significant win in Poland where a
combined offering of Ericsson and Net Insight was the winning solution for a new DTT
network. Earlier in the quarter we won what I regard as a very significant and strategic
project when Teracom of Sweden selected Net Insight for the world’s first all IP-based
DVB-T2 network.

During the end of the quarter we have been greatly involved with the FIFA World Cup live
transmissions from South Africa. The Nimbra platform was used by nine different
customers to bring live TV signals to over 80 countries. For the first time ever our
customer ESPN transmitted live 3D feeds from South Africa to viewers across the United
States. I can also mention that our participation was successful and we have received
positive feedback from our customers which holds us in good stead for the future.

In regards to the CATV/IPTV business area we received an order with a large cable
operator in Canada, a new customer to Net Insight, which is encouraging for future
opportunities in the cable TV market.

Geographical expansion is of strategic importance to us and during the second quarter we
have entered new markets with new partners and reached new customers successfully. The
new markets entered during the second quarter are the Philippines and South Africa. I am
satisfied with the first half of the year and at the moment I see no lack of business
opportunities for the quarters ahead.

The full report can be found below.

Net Insight AB discloses the information provided herein pursuant to the Securities
Market Act and/or the Financial Instruments Trading Act. The information was submitted
for publication on July 22nd, 2010 at 08.30 am CET.

Stockholm, July 22nd, 2010

Fredrik Trägårdh
Chief Executive Officer

For more information, please contact:

Fredrik Trägårdh, CEO Net Insight AB
Tel: +46 (0) 8-685 0400, fredrik.tragardh@netinsight.net

Thomas Bergström, CFO, Net Insight AB
Tel.: +46 (0) 8-685 04 00, email:thomas.bergstrom@netinsight.net

Net Insight AB
Net Insight AB (publ)
Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net http://www.netinsight.net/
Corporate Reg. No. 556533-4397

HUG#1433345

Interim report January – June 2010 http://hugin.info/130084/R/1433345/379218.pdf

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Technip`s Second Quarter Results

July 23, 2010 By Leave a Comment

http://www.businesswire.com/news/home/20100721007037/en

2010 outlook confirmed
PARIS–(Business Wire)–
Regulatory News:

Technip (Paris:TEC) (ISIN:FR0000131708):

SECOND QUARTER 2010 RESULTS

* Revenue of €1,485 million, of which €688 million in Subsea
* Group operating margin of 10.8%
* Net Income of €106 million
* Net cash of €1,498 million
* Backlog of €8,263 million, underpinned by an order intake of €1,521 million

FULL YEAR 2010 OUTLOOK CONFIRMED*

* Group revenue around €5.9 – 6.1 billion
* Subsea revenue around €2.6 – 2.7 billion
* Subsea operating margin above 15%
* Onshore/Offshore combined operating margin stable year-on-year

* second quarter average exchange rates

€ million 2Q 09 2Q 10 % change ex. FX impact 1H 09 1H 10 % change ex. FX impact
(except EPS)
Revenue 1,732.0 1,484.5 (14.3)% (18.4)% 3,301.0 2,802.9 (15.1)% (17.5)%
EBITDA(1) 241.5 195.9 (18.9)% (24.7)% 432.2 370.4 (14.3)% (18.4)%
EBITDA Margin 13.9% 13.2% (75) bp 13.1% 13.2% 12 bp
Operating Income from recurring activities 196.0 160.5 (18.1)% (24.5)% 349.9 299.7 (14.3)% (18.8)%
Operating Margin 11.3% 10.8% (50) bp 10.6% 10.7% 9 bp
Operating Income 188.2 162.5 (13.7)% 347.3 301.7 (13.1)%
Net Income 116.2 106.1 (8.7)% 215.3 202.0 (6.2)%
EPS (€) 1.08 0.98 (9.5)% 2.01 1.87 (7.2)%
(1) Calculated as Operating Income from recurring activities pre depreciation and amortization

On July 20, 2010, Technip`s Board of Directors approved the unaudited second
quarter 2010 consolidated accounts. Chairman and CEO Thierry Pilenko commented:
“At the half of year, Technip remains on track to deliver its 2010 objectives,
following two quarters of good project execution and delivery across all
segments.

During the second quarter we made good progress on key projects in Subsea, and
despite lower activity in the North Sea and Asia, we accordingly delivered a
solid operating margin above our expectations at 16.9%. In Onshore/Offshore the
underlying profitability of our newer book of business combined with the
completion of key projects drove a satisfactory operating margin of 7.1%.

Order intake was €1,521 million split nearly 50:50 between Subsea and
Onshore/Offshore. In Subsea, major orders include Tupi pilot in Brazil and
Burullus in Egypt. In Onshore/Offshore, we took a significant reimbursable EPCIC
order in Asia, a project for Eastern Europe and various other projects.

Our expectations for an improvement in the North Sea have been confirmed by a
pick up in awards in the quarter notably on the Norwegian side: we expect this
to continue in the second half. Brazil continues to show promise and prospects
in the Middle East and Asia are substantial although competition remains intense
particularly Onshore.

It is difficult to predict all of the repercussions from the tragic incident in
the Gulf of Mexico. At this stage, there has been no adverse impact on our 2010
operations. The drilling moratorium will likely delay near-term FIDs for Subsea
and Offshore order intake in the Gulf even if FEEDs and studies continue to be
awarded. In the longer term we believe operators will everywhere prefer to work
with contractors that have been investing consistently in safety,
high-performing assets, operational excellence, and technology – elements that
are central to Technip`s strategy.

For the balance of the year, we will continue to focus on the key drivers of our
business: good project execution (notably for our Subsea projects in
installation phase), and a balanced, profitable order intake. Furthermore
Technip will continue to invest in its strategy, with a particular focus on
local content and partnerships, technology and hiring key talent throughout our
business.”

I. SECOND QUARTER 2010 REPORT

1. Operational Highlights

Subsea business segment`s main events were:

* In the Gulf of Mexico:

* Cascade & Chinook project was successfully completed,
* Offshore operations on other projects continued as planned,

* Pipelayer Apache II sea trials were completed in May. She successfully
completed her first projects: Talisman Auk North and Burghley in the North Sea,
* Vessel utilization rate was 70% compared with 83% a year ago and 70% in the
first quarter 2010,
* Offshore operations continued on Jubilee field in Ghana,
* Procurement and fabrication progressed well in preparation for offshore
operations on Pazflor and Block 31 projects in Angola,
* Operations offshore Brazil on the Tupi gas export pipeline continued,
* Good activity at flexible pipe production units continued.

Offshore business segment`s main events were:

* FEED activities continued to progress as planned for Floating LNG contracts
for Shell Prelude field near Australia and for Petrobras in Brazil,
* FEED activities progressed on Wheatstone gas processing platform for offshore
Australia,
* Projects in Brazil and Asia progressed well.

In the Onshore business segment:

* Construction and pre-commissioning continued to progress for Qatargas 3&4
Trains 6 and 7 in Qatar,
* Dung Quat refinery in Vietnam was turned over to the Client,
* Saudi Arabian Khursaniyah gas plant, Trains 1 & 2 were turned over to the
client,
* Second train of the Yemen LNG natural gas liquefaction plant turned over to
the client,
* Construction activities and pre-commissioning progressed well, and
commissioning started on the Gdańsk refinery for Grupa Lotos in Poland,
* Engineering and procurement continued for the Jubail refinery in Saudi Arabia;
early construction works started,
* Biodiesel plants for Neste Oil progressed well with construction in Rotterdam,
The Netherlands, while commissioning started in Singapore,
* Basic engineering was completed while detailed engineering and procurement
progressed as planned on the Yinchuan, Ningxia LNG in China.

2. Order intake and Backlog

During second quarter 2010, Technip`s order intake was €1,521 million compared
with €873 million in second quarter 2009. The breakdown by business segment for
the second quarter was as follows:

€ million 2Q 09 2Q 10
Subsea 528.7 60.6% 772.8 50.8%
Offshore 119.9 13.7% 318.6 20.9%
Onshore 224.3 25.7% 429.9 28.3%

Subsea order intake of €773 million comprised notably of a wide variety of
projects in the North Sea including Devenick for BP, the Marulk reeled
pipe-in-pipe project for Eni and several frame agreements (BP, BG, and Statoil).
We won several contracts in Brazil including Tupi 2Pilot, and in Egypt, where we
were awarded the West Delta Deep Marine (WDDM) Phase VIIIa project for Burullus.

Onshore/Offshore order intake included a significant reimbursable EPCIC project
in Asia, as well as an extension of the Artificial Island FEED in UAE for ZADCO
and several small and medium-sized projects in Europe and Latin America.

Listed in annex II (d) are the main contracts announced during second quarter
2010 and their approximate value if publicly disclosed.

At the end of second quarter 2010, Technip`s backlog rose to €8,263 million,
compared with €8,018 million at the end of fourth quarter 2009 and €6,066
million at the end of second quarter 2009. Approximately 35% of the backlog is
expected to be executed in the second half of 2010.

The backlog breakdown by business segment is as follows:

€ million June 30, 2009 June 30, 2010
Subsea 3,115.9 51.4% 3,057.3 37.0%
Offshore 373.9 6.2% 600.8 7.3%
Onshore 2,575.9 42.4% 4,604.7 55.7%

3. Capital expenditures

Capital expenditure for second quarter 2010 was inline with expectations at €90
million compared with €175 million a year ago (which included the Apache II
acquisition).

4. Other

The ongoing investigations led by the US Department of Justice (“DOJ”) and
Securities and Exchange Commission (“SEC”) have been resolved by the signature
on June 28th, 2010 of a final agreement to fully resolve all potential claims
arising from Technip`s participation in the TSKJ joint venture between 1994 and
2004. The agreements are in line with the disclosures made previously. Technip
agreed to pay USD 240 million to the DOJ in eight equal installments over the
next two years starting in the third quarter and to the SEC USD 98 million in
July 2010.

II. SECOND QUARTER 2010 FINANCIAL RESULTS

1.Revenue

€ million 2Q 09 2Q 10 % change
Subsea 848.4 687.6 (19.0)%
Offshore 147.6 185.5 25.7%
Onshore 736.0 611.4 (16.9)%
Corporate – – nm
Total 1,732.0 1,484.5 (14.3)%

* Subsea`s major revenue contributors included Jubilee in Ghana, Caesar Tonga
and Cascade & Chinook in the Gulf of Mexico, Pazflor and Block 31 in Angola, and
various contracts in the North Sea and Brazil, for example the Tupi gas export
pipeline,
* Offshore`srevenue included the Floating LNG contracts for Shell and Petrobras,
the Wheatstone gas processing platform FEED in Australia, and numerous ongoing
contracts in Asia,
* Onshore`s major revenue contributors were the Jubail refinery and Khursaniyah
gas plant in Saudi Arabia, the Ningxia LNG in China and the Dung Quat Refinery
in Vietnam.

Foreign exchange had a positive impact of €71 million on second quarter 2010
Group revenue compared with same quarter last year.

2.Operating Income from Recurring Activities

€ million 2Q 09 2Q 10 % change
Subsea 159.1 116.1 (27.0)%
Offshore 8.8 9.0 2.3%
Onshore 38.3 47.5 24.0%
Corporate (10.2) (12.1) 18.6%
Total 196.0 160.5 (18.1)%

Subsea EBITDA margin was 21.1% versus 23.5% for the same quarter last year and
operating margin was 16.9% versus 18.8% for the same quarter last year.

The successful completion of several projects drove the combined operating
margin for Onshore/Offshore to 7.1% compared with 5.3% a year ago.

Foreign exchange had a positive impact of €13 million on second quarter 2010
Group operating income from recurring activities compared with same quarter last
year.

Financial income on projects accounted as revenue amounted to €4 million during
second quarter 2010 compared with €6 million in second quarter 2009.

3.Net Income

€ million 2Q 09 2Q 10 % change
Other operating income (7.8) 2.0 nm
Operating Income 188.2 162.5 (13.7)%
Financial charges (22.7) (8.1) (64.3)%
Income from equity affiliates 0.7 (1.0) nm
Income tax (50.1) (48.2) (3.8)%
Minority Interests 0.1 0.9 nm
Net income 116.2 106.1 (8.7)%

Financialcharges for second quarter 2010 included a €7 million negative impact
from currency variations and fair market value of hedging instruments, compared
with a €16 million negative impact for the same quarter in 2009.

The effective tax rate in the quarter was 31.4% compared with 30.1% a year ago.

The average number of shares during the period on a diluted basis is calculated
as per IFRS. For second quarter 2010 the number of shares stood at 108,076,795
versus 107,157,468 for the same quarter in 2009. The variation is mainly due to
the diluted effect of the outstanding performance shares and stock options
granted by the Board of Directors to Technip`s employees.

4.Cash and Balance Sheet

€ million
Net cash as of March 31, 2010 1,800.6
Net cash from operating activities (162.5)
of which:
Cash from operations 126.3
Change in Working capital (288.8)
Capex (89.5)
Dividend payment (143.6)
Others including currency 92.9
Net cash as of June 30, 2010 1,497.9

As of June 30, 2010, the Group`s net cash position was €1,498 million compared
with €1,784 million as of December 31, 2009 and €1,561 million as of June 30,
2009.

During second quarter 2010, cash generated from operations amounted to €126
million compared with €160 million for the same quarter in 2009. Working capital
movements had a €289 million negative impact.

Shareholders` equity as of June 30, 2010 was €2,722 million compared with €2,717
million as of December 31, 2009.

III. FULL YEAR 2010 OUTLOOK

Full year 2010 outlook remains unchanged*:

* Group revenue around €5.9 – 6.1 billion
* Subsea revenue around €2.6 – 2.7 billion
* Subsea operating margin above 15%
* Onshore/Offshore combined operating margin stable year-on-year

* second quarter average exchange rates

°

° °

The information package on Second Quarter 2010 results includes this press release and the annexes which follow as well as the presentation published on Technip`s website: www.technip.com

NOTICE

Today, July 22nd, 2010, Chairman and CEO Thierry Pilenko, along with CFO Julian
Waldron, will comment on Technip`s results and answer questions from the
financial community during a conference call in English starting at 10:00 a.m.
CET.

To participate in the conference call, you may call any of the following
telephone numbers approximately 5 – 10 minutes prior to the scheduled start
time:

France / Continental Europe: + 33 (0)1 72 00 09 84

UK: + 44 (0) 203 367 9454

USA: + 1 866 907 5924

The conference call will also be available via a simultaneous, listen-only
audio-cast on Technip`s website.

A replay of this conference call will be available approximately two hours
following the conference call for 90 days on the Technip`s website and for two
weeks at the following telephone numbers:

Telephone Numbers Confirmation Code

France / Continental Europe: + 33 (0)1 72 00 15 00 270307#

UK: + 44 (0)203 367 9460 270307#

USA: + 1 877 642 3018 270307#

Cautionary note regarding forward-looking statements

This presentation contains both historical and forward-looking statements. These
forward-looking statements are not based on historical facts, but rather reflect
our current expectations concerning future results and events and generally may
be identified by the use of forward-looking words such as “believe”, “aim”,
“expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”,
“may”, “estimates”, “potential” or other similar words. Similarly, statements
that describe our objectives, plans or goals are or may be forward-looking
statements. These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, performance
or achievements to differ materially from the anticipated results, performance
or achievements expressed or implied by these forward-looking statements. Risks
that could cause actual results to differ materially from the results
anticipated in the forward-looking statements include, among other things: our
ability to successfully continue to originate and execute large services
contracts, and construction and project risks generally; the level of
production-related capital expenditure in the oil and gas industry as well as
other industries; currency fluctuations; interest rate fluctuations; raw
material (especially steel) as well as maritime freight price fluctuations; the
timing of development of energy resources; armed conflict or political
instability in the Arabian-Persian Gulf, Africa or other regions; the strength
of competition; control of costs and expenses; the reduced availability of
government-sponsored export financing; losses in one or more of our large
contracts; U.S. legislation relating to investments in Iran or elsewhere where
we seek to do business; changes in tax legislation, rules, regulation or
enforcement; intensified price pressure by our competitors; severe weather
conditions; our ability to successfully keep pace with technology changes; our
ability to attract and retain qualified personnel; the evolution, interpretation
and uniform application and enforcement of International Financial Reporting
Standards (IFRS), according to which we prepare our financial statements as of
January 1, 2005; political and social stability in developing countries;
competition; supply chain bottlenecks; the ability of our subcontractors to
attract skilled labor; the fact that our operations may cause the discharge of
hazardous substances, leading to significant environmental remediation costs;
our ability to manage and mitigate logistical challenges due to underdeveloped
infrastructure in some countries where we are performing projects.

Some of these risk factors are set forth and discussed in more detail in our
Annual Report. Should one of these known or unknown risks materialize, or should
our underlying assumptions prove incorrect, our future results could be
adversely affected, causing these results to differ materially from those
expressed in our forward-looking statements. These factors are not necessarily
all of the important factors that could cause our actual results to differ
materially from those expressed in any of our forward-looking statements. Other
unknown or unpredictable factors also could have material adverse effects on our
future results. The forward-looking statements included in this release are made
only as of the date of this release.We cannot assure you that projected results
or events will be achieved. We do not intend, and do not assume any obligation
to update any industry information or forward-looking information set forth in
this release to reflect subsequent events or circumstances.

****

This presentation does not constitute an offer or invitation to purchase any
securities of Technip in the United States or any other jurisdiction. Securities
may not be offered or sold in the United States absent registration or an
exemption from registration. The information contained in this presentation may
not be relied upon in deciding whether or not to acquire Technip securities.

This presentation is being furnished to you solely for your information, and it
may not be reproduced, redistributed or published, directly or indirectly, in
whole or in part, to any other person. Non-compliance with these restrictions
may result in the violation of legal restrictions of the United States or of
other jurisdictions.

Technip is a world leader in the fields of project management, engineering and
construction for the oil & gas industry, offering a comprehensive portfolio of
innovative solutions and technologies.

With 23,000 employees around the world, integrated capabilities and proven
expertise in underwater infrastructures (Subsea), offshore facilities (Offshore)
and large processing units and plants on land (Onshore), Technip is a key
contributor to the development of sustainable solutions for the energy
challenges of the 21st century.

Present in 48 countries, Technip has operating centers and industrial assets
(manufacturing plants, spoolbases, construction yard) on five continents, and
operates its own fleet of specialized vessels for pipeline installation and
subsea construction.

The Technip share is listed on NYSE Euronext Paris exchange and over the counter
(OTC) in the USA.

OTC ADR ISIN: US8785462099

°

° °

ANNEX I (a)

CONSOLIDATED STATEMENT OF INCOME

IFRS, unaudited

€ million Second Quarter First Half
(except EPS, and number of shares)
2009 2010 % ∆ 2009 2010 % ∆
Revenue 1,732.0 1,484.5 (14.3 )% 3,301.0 2,802.9 (15.1 )%
Gross Margin 299.9 288.4 (3.8 )% 562.3 542.1 (3.6 )%
Research & Development Expenses (14.0 ) (13.3 ) (5.0 )% (25.6 ) (26.2 ) 2.3 %
SG&A & Other Operating Expenses (89.9 ) (114.6 ) 27.5 % (186.8 ) (216.2 ) 15.7 %
Operating Income from Recurring activities 196.0 160.5 (18.1 )% 349.9 299.7 (14.3 )%
Other operating income (7.8 ) 2.0 nm (2.6 ) 2.0 nm
Operating Income 188.2 162.5 (13.7 )% 347.3 301.7 (13.1 )%
Financial Income (Charges) (22.7 ) (8.1 ) (64.3 )% (34.8 ) (11.3 ) (67.5 )%
Income from Equity Affiliates 0.7 (1.0 ) nm 1.4 – nm
Profit Before Tax 166.2 153.4 (7.7 )% 313.9 290.4 (7.5 )%
Income Tax (50.1 ) (48.2 ) (3.8 )% (94.5 ) (90.0 ) (4.8 )%
Tax on Sale of Activities – – – –
Minority Interests 0.1 0.9 nm (4.1 ) 1.6 nm
Net Income 116.2 106.1 (8.7 )% 215.3 202.0 (6.2 )%

Number of Shares on a Diluted Basis 107,157,468 108,076,795 106,886,791 108,007,347

EPS (€) on a Diluted Basis 1.08 0.98 (9.5 )% 2.01 1.87 (7.2 )%

1 As per IFRS, Earnings Per Share (diluted) is calculated by dividing profit or
loss attributable to the Parent Company`s Shareholders by the weighted average
number of outstanding shares during the period, plus the effect of dilutive
stock options and performance shares calculated according to the “Share Purchase
Method” (IFRS 2), less treasury shares. In conformity with this method,
anti-dilutive stock options are ignored in calculating EPS. Dilutive options are
taken into account if the subscription price of the stock options plus the
future IFRS 2 charge (i.e. the sum of annual charge to be recorded until the end
of the stock option plan) is lower than the average market share price during
the period.

ANNEX I (b)

CONSOLIDATED BALANCE SHEET IFRS

€ million Dec. 31, 2009 June 30, 2010
(audited) (unaudited)

Fixed Assets 3,646.0 3,812.4
Deferred Taxes 263.8 383.8
NON-CURRENT ASSETS 3,909.8 4,196.2

Construction Contracts 158.0 248.2
Inventories, Trade Receivables and Others 1,845.9 1,913.5
Cash & Cash Equivalents 2,656.3 2,404.1
CURRENT ASSETS 4,660.2 4,565.8

TOTAL ASSETS 8,570.0 8,762.0

Shareholders` Equity (Parent Company) 2,686.7 2,695.3
Minority Interests 30.4 26.9
SHAREHOLDERS` EQUITY 2,717.1 2,722.2

Non-Current Debts 844.5 244.2
Non-Current Provisions 100.4 113.2
Deferred Taxes and Other Non-Current Liabilities 124.9 122.1
NON-CURRENT LIABILITIES 1,069.8 479.5

Current Debts 28.2 662.0
Current Provisions 484.1 262.5
Construction Contracts 975.6 706.5
Accounts Payable & Other Advances Received 3,295.2 3,929.3
CURRENT LIABILITIES 4,783.1 5,560.3

TOTAL SHAREHOLDERS` EQUITY & LIABILITIES 8,570.0 8,762.0

Changes in Shareholders` Equity (Parent Company), unaudited
Shareholders` Equity as of December 31, 2009 2,686.7
First Half 2010 Net Income 202.0
Capital Increases 2.6
IAS 32 and 39 Impacts (174.3 )
Dividend Payment (143.6 )
Treasury Shares 0.8
Translation Adjustments and Other 121.1
Shareholders` Equity as of June 30, 2010 2,695.3

ANNEX I (c)

CONSOLIDATED STATEMENT OF CASH FLOWS

IFRS, unaudited

First Half
€ million 2009 2010

Net Income 215.3 202.0
Depreciation of Fixed Assets 82.2 70.8
Stock Option and Performance Share Charges 13.8 5.7
Long-Term Provisions (including Employee Benefits) 3.0 2.0
Carry Forwards not previously Recognized – –
Deferred Income Tax (11.8) (40.7)
Capital (Gain) Loss on Asset Sale (0.7) (9.8)
Minority Interests and Other 5.5 (1.6)
Cash from Operations 307.3 228.4

Change in Working Capital (44.4) (366.5)

Net Cash Provided by (Used in) Operating Activities 262.9 (138.1)

Capital Expenditures (232.9) (150.8)
Cash Proceeds from Asset Sales 1.2 21.6
Acquisitions of Investments, net of cash acquired (7.4) (28.9)
Change of scope of consolidation – 2.4

Net Cash Provided by (Used in) Investment Activities (239.1) (155.7)

Increase (Decrease) in Debt 46.2 9.9
Capital Increase 0.0 2.6
Dividend Payment (127.5) (143.6)
Treasury Shares – (6.8)

Net Cash Provided by (used in) Financing Activities (81.3) (137.9)

Foreign Exchange Translation Adjustment 36.2 180.3

Net Increase (Decrease) in Cash and Equivalents (21.3) (251.4)

Bank overdraft at Period Beginning (4.2) (1.2)
Cash and Equivalents at Period Beginning 2,404.7 2,656.3
Bank overdraft at Period End (0.1) (0.4)
Cash and Equivalents at Period End 2,379.2 2,404.1
(21.3) (251.4)

ANNEX I (d)

TREASURY AND FINANCIAL DEBT – CURRENCY RATES

IFRS

€ million Treasury and Financial Debt
Dec. 31, 2009 June 30, 2010
(audited) (unaudited)
Cash Equivalents 2,140.6 1,674.5
Cash 515.7 729.6
Cash & Cash Equivalents (A) 2,656.3 2,404.1
Current Debts 28.2 662.0
Non Current Debts 844.5 244.2
Gross Debt (B) 872.7 906.2
Net Financial Cash (Debt) (A – B) 1,783.6 1,497.9

€ versus Foreign Currency Conversion Rates

Statement of Income Balance Sheet as of
2Q 09 2Q 10 1H 09 1H 10 Dec. 31, 2009 June 30, 2010

USD 1.36 1.27 1.33 1.35 1.44 1.23
GBP 0.88 0.85 0.89 0.88 0.89 0.85

ANNEX II (a)

REVENUE BY REGION

IFRS, unaudited

Second Quarter First Half
€ million 2009 2010 % Δ 2009 2010 % Δ
Europe, Russia, C. Asia 492.1 430.1 (12.6)% 867.4 696.1 (19.7)%
Africa 279.3 218.9 (21.6)% 458.7 510.3 11.2%
Middle East 325.8 304.5 (6.5)% 738.5 586.4 (20.6)%
Asia Pacific 199.3 184.5 (7.4)% 407.7 350.8 (14.0)%
Americas 435.5 346.5 (20.4)% 828.7 659.3 (20.4)%
TOTAL 1,732.0 1,484.5 (14.3)% 3,301.0 2,802.9 (15.1)%

ANNEX II (b)

ADDITIONAL INFORMATION BY BUSINESS SEGMENT

IFRS, unaudited

€ million 2Q 09 2Q 10 % ∆ 1H 09 1H 10 % ∆
SUBSEA
Revenue 848.4 687.6 (19.0 )% 1,464.0 1,319.4 (9.9 )%
Gross Margin 196.5 168.2 (14.4 )% 360.4 323.3 (10.3 )%
Operating Income from Recurring Activities 159.1 116.1 (27.0 )% 277.5 224.3 (19.2 )%

Depreciation and Amortization (40.1 ) (29.2 ) (27.2 )% (69.6 ) (58.5 ) (15.9 )%
EBITDA(1) 199.2 145.3 (27.1 )% 347.1 282.8 (18.5 )%

OFFSHORE
Revenue 147.6 185.5 25.7 % 294.7 327.5 11.1 %
Gross Margin 24.4 26.0 6.6 % 44.7 50.6 13.2 %
Operating Income from Recurring Activities 8.8 9.0 2.3 % 15.4 20.0 29.9 %

Depreciation and Amortization (2.5 ) (2.7 ) 8.0 % (4.9 ) (4.9 ) 0.0 %

ONSHORE
Revenue 736.0 611.4 (16.9 )% 1,542.3 1,156.0 (25.0 )%
Gross Margin 79.0 94.5 19.6 % 157.2 168.5 7.2 %
Operating Income from Recurring Activities 38.3 47.5 24.0 % 74.7 75.1 0.5 %

Depreciation and Amortization (3.1 ) (2.7 ) (12.9 )% (7.1 ) (6.5 ) (8.5 )%

CORPORATE
Operating Income from Recurring Activities (10.2 ) (12.1 ) 18.6 % (17.7 ) (19.7 ) 11.3 %

Depreciation and Amortization 0.2 (0.8 ) nm (0.7 ) (0.8 ) 14.3 %

(1) Calculated as Operating Income from recurring activities before depreciation
and amortization

ANNEX II (c)

ORDER INTAKE & BACKLOG

unaudited

Order Intake by Business Segment
Second Quarter
€ million 2009 2010 % Δ
Subsea 528.7 772.8 46.2%
Offshore 119.9 318.6 2.7x
Onshore 224.3 429.9 1.9x
TOTAL 872.9 1,521.3 74.3%

Backlog by Business Segment
€ million As of As of As of
June 30, 2009 Dec. 31, 2009 June 30, 2010
Subsea 3,115.9 3,053.0 3,057.3
Offshore 373.9 467.9 600.8
Onshore 2,575.9 4,497.4 4,604.7
TOTAL 6,065.7 8,018.3 8,262.8

Backlog by Region
€ million As of As of As of
June 30, 2009 Dec. 31, 2009 June 30, 2010
Europe, Russia, C. Asia 1,152.7 1,440.2 1,716.0
Africa 1,583.5 1,505.6 1,341.5
Middle East 1,182.2 3,062.7 3,066.3
Asia Pacific 618.8 643.3 660.5
Americas 1,528.5 1,366.5 1,478.5
TOTAL 6,065.7 8,018.3 8,262.8

June 30, 2010 Backlog Estimated Scheduling

SUBSEA OFFSHORE ONSHORE GROUP
€ million
For 2010 (6 months) 1,264.1 367.9 1,263.5 2,895.5
For 2011 1,439.1 195.2 2,265.3 3,899.6
For 2012 and beyond 354.1 37.7 1,075.9 1,467.7
TOTAL 3,057.3 600.8 4,604.7 8,262.8

ANNEX II (d)

ORDER INTAKE

unaudited

In Second quarter 2010, Technip`s order intake reached €1,521 million compared with €873 million for the same period the year before. The main contracts that we announced during second quarter 2010 were:
* Onshore was awarded two contracts, together worth approximately €115 million, by Hindustan Petroleum Corporation Ltd. (HPCL) for their diesel hydrotreater project in the Visakh refinery, on the east coast of India,
* Onshore was awarded three lump sum turnkey contracts for Mangalore Refinery & Petrochemicals Ltd. (MRPL), worth a total value of approximately €25 million, for the Phase III Expansion Project for a refinery located in Mangalore on the west coast of India,
* Subsea was awarded by Statoil ASA a three-year framework contract for the design, fabrication and supply of flexible pipe products for projects in Norway,
* Subsea was awarded a contract by Petrobras for the Tupi pilot infield lines. This field is located at a water depth of 2,200 meters in the pre-salt layer of the Santos Basin, approximately 300 kilometers offshore the Brazilian coast,
* Subsea was awarded a contract worth approximately €30 million by Statoil ASA for the fabrication and installation of a 30.5 kilometer-long pipe-in-pipe flowline to support the Marulk field development in the Norwegian sea,
* Subsea was awarded an engineering, procurement, installation and construction (EPIC) contract by Eni for the Kitan field development project, located in approximately 350 meters of water in the Timor Sea, 500 kilometers off the Australian coast,
* Subsea was awarded a major four-year term agreement by BG Group for the provision of pre-FEED, FEED, full EPIC and IRM services in both the United Kingdom and Norwegian Continental Shelves. The agreement contains a provision to extend the contract with a further three, one-year options,
* Subsea was awarded a lump sum engineering, procurement, installation and construction (EPIC) contract by Burullus Gas Company SAE for the West Delta Marine (WDDM) Phase VIIIa development project. The contract value is in excess of USD300 million. It involves an expansion of the WDDM facilities, located 95 kilometers offshore Egypt in the Mediterranean Sea.

Since July 1, 2010, Technip has also announced the award of the following contracts that were included in the backlog as of June 30, 2010:
* Subsea was awarded by BP two significant contracts, with a combined total value in the region of GBP100 million. The first award is a three-year diving repair & maintenance (R&M) frame agreement contract with two further one year options. The second is a major engineering and installation contract for the development of the Devenick field, located 234 kilometers north east of Aberdeen,
* Subsea was awarded by BP Exploration Operating Company Ltd a contract, worth approximately €14 million, for the Andrew field development. This field is located 230 kilometers north east of Aberdeen, in the United Kingdom North Sea.

Since July 1, 2010, Technip has also announced the award of the following
contracts that were included in the backlog as of June 30, 2010:

* Subsea was awarded by BP two significant contracts, with a combined total
value in the region of GBP100 million. The first award is a three-year diving
repair & maintenance (R&M) frame agreement contract with two further one year
options. The second is a major engineering and installation contract for the
development of the Devenick field, located 234 kilometers north east of
Aberdeen,

* Subsea was awarded by BP Exploration Operating Company Ltd a contract, worth
approximately €14 million, for the Andrew field development. This field is
located 230 kilometers north east of Aberdeen, in the United Kingdom North Sea.

Technip
Investor and Analyst Relations
Kimberly Stewart, +33 (0) 1 47 78 66 74
kstewart@technip.com
or
Public Relations
Christophe Bélorgeot, +33 (0) 1 47 78 39 92
Floriane Lassalle-Massip, +33 (0) 1 47 78 32 79
press@technip.com
Technip`s website: http://www.technip.com
Technip`s IR website: http://investors-en.technip.com
Technip`s IR mobile website: http://investors.mobi-en.technip.com

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Sandvik: Interim Report Second Quarter 2010

July 21, 2010 By Leave a Comment

STOCKHOLM–(Business Wire)–
Sandvik (STO:SAND):

CONTINUED RECOVERY

· Order intake SEK 23,179 M
· Invoiced sales SEK 20,603 M
· Operating profit SEK 3,471 M
· Operating margin 16.8%
· Cash flow from operations SEK +2,626 M

Accounting policies

This interim report was prepared in accordance with IFRS, applying IAS 34,
Interim Financial Reporting. The same accounting and valuation policies were
applied as in the most recent annual report. New standards and interpretations
effective from 1 January 2010 have not had any significant impact on Sandvik`s
financial statements.

The phrase “Minority interest” has been changed in the financial statements to
the new designation “Non-controlling interest” according to revised IFRS 3
Business Combinations and amended IAS 27 Consolidated and Separate Financial
Statements.

The company’s auditors have not conducted a special review of the Q2 2010
report. The Sandvik Group`s interim report for the third quarter 2010 will be
published on 29 October 2010.

A combined presentation and teleconference will be held on 20 July 2010 at 14.00
CET at Operraterassen in Stockholm. Information is available at
www.sandvik.com/ir.

Sandviken 20 July 2010

Sandvik Aktiebolag (publ)

Lars Pettersson

President and CEO

Sandvik discloses the information provided herein pursuant to the Securities
Market Act. The information is submitted for publication on 20 July 2010 at
08.00 am CET.

This information was brought to you by Cision http://www.cisionwire.com

Sandvik
Jan Lissåker, Investor Relations
tel. +46 26 26 10 23
e-mail info.ir@sandvik.com

Copyright Business Wire 2010

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Electrolux: Interim Report January – June 2010

July 20, 2010 By Leave a Comment

STOCKHOLM–(Business Wire)–
Electrolux (STO:ELUXA) (STO:ELUXB):

Highlights of the second quarter of 2010

* Net sales amounted to SEK 27,311m (27,482) and income for the period was SEK
1,028m (658), or SEK 3.61 (2.32) per share.
* Net sales increased by 2.8% in comparable currencies, due to higher sales
volumes.
* Operating income amounted to SEK 1,477m (1,027), corresponding to a margin of
5.4% (3.7), excluding items affecting comparability.
* Operating margin for the past 12-month period reached 6.5%, excluding items
affecting comparability.
* Operating income improved across all business areas, in comparable currencies.

* Higher volumes and product mix improvements had a positive effect on income.
* Higher costs for raw materials and increased marketing spend had a negative
impact on operating income.
* Solid cash flow in the quarter.
* The US market continued to recover during the quarter.
* The overall European market stabilized, but demand weakened in Southern Europe
at the end of the quarter.

Telephone conference

A telephone conference is held at 15.00 CET on July 19, 2010. The conference is
chaired by Hans Stråberg, President and CEO of Electrolux. Mr. Stråberg is
accompanied by Jonas Samuelson, CFO, and Peter Nyquist, Head of Investor
Relations and Financial Information.

A slide presentation on the second-quarter results of 2010 will be available on
the Electrolux website www.electrolux.com/ir

Details for participation by telephone are as follows:
Participants in Sweden should call +46 (0)8 505 598 53
Participants in UK/Europe should call +44 (0)20 3043 2436
Participants in US should call +1 866 458 4087

You can also listen to the presentation at http://www.electrolux.com/webcast1

Financial information from Electrolux is also available at www.electrolux.com/ir

This information was brought to you by Cision http://www.cisionwire.com

Electrolux
Peter Nyquist, +46 (0)8 738 60 03
Head of Investor Relations and Financial Information

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,
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