Robust and relevant business model

• Improvement in gross margin
• Positive commercial momentum
• Cost control and continued investment in R&D
• Impact of temporary effects
• Solid financial structure

PARIS — (BUSINESS WIRE) — September 25, 2014 — Alain de Rouvray, ESI Group’s Chairman and CEO, comments: "The results for the first half, although impacted by significant temporary effects, demonstrate the robustness of the Group's business model and the relevance of its industrial strategy. The increase in gross margin, with composition positively evolved due to the product mix changes, is buoyed by the strategic shift of the Services activity towards projects with high value added. While boosting sales linked to its integrated trade solutions, the Group has continued to invest in its multi-sector development while maintaining its policy of cost control. These factors, as well as the strengthening of strategic partnerships with key customers, mean that the Group can serenely embark on its more significant second half – where there is typically strong positive seasonal impact – confident in its ability to generate growth and to improve its profitability for the year."

Consolidated half-year results

FY to January 31 (unaudited)

In € millions			H1 2014 to July 31, 2014			H1 2013 to July 31, 2013			Δ (actual)						Δ (constant currency)
									Amount			%			Amount	%
Total sales			42.6			44.3			(1.7)			-3.7%			(0.2)	-0.6%
Licenses			29.7			29.9			(0.2)			-0.7%			0.9	2.9%
Services			13.0			14.4			(1.5)			-10.1%			(1.1)	-7.8%
Gross margin			28.0			27.9			0.1			0.4%			1.2	4.1%
% of sales			65.7%			63.0%
EBITDA			(4.8)			(3.7)			(1.2)			-31.8%			(0.9)	-24.9%
% of sales			-11.4%			-8.3%
Core Operating Profit			(6.1)			(4.5)			(1.6)			-35.3%			(1.4)	-30.4%
% of sales			-14.3%			-10.2%
EBIT			(6.3)			(5.0)			(1.4)			-27.4%			(1.1)	-22.7%
% of sales			-14.8%			-11.2%
Attributable net profit/loss			(4.9)			(3.8)			(1.1)			- 30.1%			(1.1)	-29.5%
% of sales			-11.6%			-8.7%

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