ADLPartner: 2017 EARNINGS MARKED BY THE INTENSITY OF COMMERCIAL INVESTMENTS

PRESS RELEASE
Paris, 23 March 2018 (6:30pm)

ADLPartner: 2017 EARNINGS MARKED BY THE INTENSITY OF COMMERCIAL INVESTMENTS
PROPOSED DIVIDEND OF €1 PER SHARE

The ADLPartner Group is releasing its full-year earnings for 2017. Operating income came to €6.5 million, representing 5.3% of net sales, with €4.57 million in net income (Group share), representing €1.11 per share.

HIGHLIGHTS

ADLPartner continued to diversify its business in 2017:

• For press services, commercial investments in the open-ended subscription business made it possible to generate strong sales volume growth and limit its portfolio's attrition;
• For marketing services, the increase in sales is reflecting the organic growth in France and the full consolidation of Activis since October 2016 and LEOO since July 2017, which have offset the contraction in business in Spain;
• For direct marketing insurance brokerage, with significant commercial investments, equivalent to 2016, ADLP Assurances has developed its customer base and its portfolio of contracts generating recurrent revenues through its own-account business and white-label operations with market-leading firms.

EARNINGS

Consolidated net sales^[1] climbed to €124.2 million, up 1.4% from 2016, while the gross sales volume^[2] came to €279.5 million, up 0.6%.

EBITDA^[1] represents €8.3 million, down €1.8 million. This change primarily reflects i/ the sustained commercial investments in the open-ended subscription business and the ADLP Assurances subsidiary, ii/ the contraction in earnings for the Spanish subsidiary, and iii/ the consolidation of earnings for the company LEOO in the second half of the year.

Operating income came to €6.5 million in 2017, down €2.3 million from 2016, against a backdrop of an increase in investments linked in particular to the implementation of the General Data Protection Regulation (GDPR).

Consolidated net income (Group share) represents €4.57 million, with a net margin of 3.7%, versus 4.5% in 2016.

Consolidated data (€m)	2017	2016
Net sales	124.20	122.30
EBITDA1 % of net sales	8.35 6.7%	10.12 8.3%
Income from ordinary operations % of net sales	7.04 5.7%	9.38 7.7%
Operating income % of net sales	6.54 5.3%	8.89 7.3%
Net income (Group share) % of net sales	4.57 3.7%	5.47 4.5%

FINANCIAL STRUCTURE

Consolidated shareholders' equity represented €21.5 million at 31 December 2017, down €1.9 million from 31 December 2016, primarily factoring in consolidated earnings for the year (+€4.3 million), the ordinary dividend paid out for FY 2016 (-€4.0 million) and the impact of LEOO's acquisition (-€2.9 million).

The Group's net free cash flow is up €3 million to €31.8 million at 31 December 2017. Net asset value^[3] (Group share), calculated based on shareholders' equity and the value of the active open-ended subscription portfolio, is down -2.1% to €123.6 million at 31 December 2017 (€31.1 per share excluding treasury stock).

PROPOSED DIVIDEND OF €1 PER SHARE

Considering the results achieved in 2017 and the investments planned for 2018, the Management Board will be submitting a proposal at the General Shareholders' Meeting on 15 June 2018 to keep the dividend at €1 per share. This dividend will be released for payment on 22 June 2018.

OUTLOOK

In 2018, the ADLPartner Group is continuing to roll out its strategy to create value and capitalize on its marketing expertise and solutions in new growth markets. The continued commercial investments in the open-ended subscription business and the ADLP Assurances subsidiary will enable it to develop its portfolios of contracts generating recurrent revenues. Alongside this, marketing services will continue to be strengthened with Converteo fully integrated from the second half of 2018, which will favorably impact Group's full year sales.

ADDITIONAL INFORMATION

The consolidated financial statements for 2017 were approved by the Management Board on 16 March 2018 and checked and controlled by the Supervisory Board during its meeting on 23 March 2018. The statutory auditors have completed the audit procedures on the consolidated accounts. The certification report will be issued once the necessary procedures have been finalized for publishing the full-year financial report.

Next date: 2018 first-quarter net sales on 26 April 2018 (after close of trading).

ADLPartner in brief

With its extensive track record in performance marketing, ADLPartner designs, markets and implements customer relationship management and loyalty services on its own behalf or for its major partners (banks, retailers, services,
e-commerce, etc.) across all distribution channels.
ADLPartner is listed on the regulated market Euronext Paris - Compartment C.
ISIN: FR0000062978-ALP - Bloomberg: ALP:FP - Reuters: ALDP.PA
www.adlpartner.com

CONTACTS

ADLPartner Investor Relations & Financial Information tel: +33 1 41 58 72 03 relations.investisseurs@adlpartner.fr

Calyptus Cyril Combe tel: +33 1 53 65 68 68 adlpartner@calyptus.net

^[1] Earnings before interest, tax, depreciation and amortization

^[1] Net sales (determined in line with the French professional status for subscription sales) only include the amount of remuneration paid by magazine publishers; for subscription sales, net sales therefore correspond to a gross margin, deducting the cost of magazines sold from the amount of sales recorded. For acquisition and management commissions linked to sales of insurance policies, net sales comprise current and future commissions issued, acquired by the accounting reporting date, net of cancellations.

^[2] Gross sales volume represents the value of subscriptions and other products sold. It is equal to net sales for the insurance business.

^[3] Net asset value represents the amount of equity plus the discounted value of future net revenues generated by the active open-ended subscription portfolio.

Attachment:

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