Analysts Meeting 9th march Year s results 2006 Forecasts 2007

Transcription

1 Analysts Meeting 9th march 2007 Year s results 2006 Forecasts 2007

2 Noteworthy events : real take-off year for Internet TV in France Generalising of 3-play (TV, Internet, fixed telephony) offers among all telecom operators and Internet access providers, with the advent of high-definition MPEG4 platforms, which has valorised stock for some time to come The result: a significant growth in turnover (52.6M +205%), with over 300,000 IPTV* solutions deployed in 2006 for the main French telecom operators * Internet Protocol Television

3 Noteworthy events 2006 France: A successful implementation Leading consumer high-definition offer (FNAC) Integration know-how proven to our customers Epg v3 (*) Visio MediaCenter Epg (*) MediaCenter Radio/ Photo IHM (*) Fibre optic The ability to cope with the increase in customer load * from 0 to 400,000+ solutions sold in 24 months * Fab-Less model * Industrial subcontracting in France (*) Epg: Electronic program guide IHM: Man Machine Interface

4 Noteworthy events 2006 France: A powerhouse customer: 9Cegetel 2.2m ADSL subscribers at end of 12/06 (+1.0m in 2006) (*) Share of high-velocity Internet subscribers market on 31/12/06: 18.1% (*) Number of subscribers to the ADSL TV offer on 31/12/06: 300,000(*) A 3-play offer that has caught up with Free in innovation terms, and overtaken it in quality of service terms (classed as best triple-play offer in 2006 by IP Label period 29/12/05 to 27/12/06) (*) The force behind our technological innovation R&D applied on the basis of customers'immediate needs A consolidator: repurchase of AOL (October 2006) then announcement of the Erenis takeover project (February 2007) ) (*) Source: 9C March 2007

5 Noteworthy events 2006 Media Services Insufficient investment in the face of the terminals division taking up all the Group s energy: Contribution of services < 10% of consolidated sales compared to 24% en 2005 Nevertheless, a common subsidiary, Médiamétrie, is set up (50/50) * Commercial management of TV-Performances services of Netgem s Médiamétrie and Viewtime * Use of terminals return channel for the development of a new usage observation system Downward variation (-2%) of % of control of Belgian and Dutch entities on 1/1/06 (Agreements of March 2005)

6 Noteworthy events 2006 International: Immature Few markets, with the exception of some Asian markets, have France s level of IPTV maturity The International share fell in 2006, from 35% in 2005 to 10% In Great Britain, BT s offer has been delayed, which is likely to drive the market. This situation should change in 2007

7 Consolidated key figures IFRS 2006 Data in m Significant and profitable growth in the activity Sharp increase in turnover Tangible improvement of operational profitability CA 12 months: 52.6 m +205% (S2 06 = 35,9 M ) 92% Terminals 90% France COR 12 months : 7,0 M 46,3% of Gross Margin T105 T205 T305 T405 T106 T206 T306 T ,7-4,7

8 Consolidated key figures IFRS 2006 Data in m Increase in equity and cash reserves Sharp increase in the net result Group share (NRGS) Tangible improvement in operational cash flow (*) NRGS 12 months : 7,9 M X4 4 3 Trading CF. 12 months: +3.5 m X , ,6 Equity 31/12/06: 16.3 m ,4 +0, (*) Net cash flows generated by the activity and investment operations

9 Analysis of trading performance Var 2006 Data in millions of euros (IFRS) Var Chiffres d affaires 52,6 17,3 +205% Gross Margin (GM) 15,1 5,3 +185% Gross margin as % of Turnover 28,7% 30,8% Other revenue from the activity 0,4 - - Operating expenses (8,5) (6,0) +42% Current operating result (COR) 7,0 (0,7) na COR as % of GM 46,3% na Net revenue of scope variation (*) - 2,7-100% Trading result 7,0 2,0 +255% (*) VL on Media Services minority interest exchange operations (agreements March 2005)

10 Formation of NRGS Data in millions of euros (IFRS) 31/12/06 31/12/05 Var Trading result 7,0 2,0 +255% Financial result 0,3 0,2 +42% Tax proceeds (charges) (*) 0,6 (0,1) Na Net result 7,9 2,1 +277% of which net result group share (NRGS) 7,9 1,9 +312% NRGS as % of GM 52,4% 36,2% NRGS per share (in euros) 0,25 0, % (*) Of which deferred tax proceeds (IAS Norm 12) 0,6 - -

11 Consolidated Cash flow Data in millions of euros (IFRS) Cash flow linked to the activity (A) 4,6 1,5 (2,5) Self-financing capacity 8,1 (0,3) (4,2) Tax paid (0,1) - - Variation of BFR (*) (3,4) 1,8 1,7 Cash flow linked to investment operations (B) (1,1) (1,3) 0,1 TRADING CASH FLOW (A)+(B) +3,5 +0,2 (2,4) CASH FLOW LINKED TO FINANCING OPS. +1,0 +0,1 +1,4 Net cash variation +4,5 +0,3 (1,0) Rediscovered self-financing capacity Limited investment needs

12 Consolidated Balance Data in millions of euros (IFRS) 31/12/06 31/12/05 31/12/04 ASSETS Non current assets 3,6 2,4 2,5 Cash and equivalents 10,7 6,2 5,9 Other current assets 21,3 6,6 5,3 LIABILITIES 35,6 15,2 13,7 EQUITY Capitaux propres (including minority interests) 16,3 7,1 4,0 Financial borrowings and debts, long term share Other non-current liabilities 0,6 0,4 3,5 Provisions 0,2 0,1 0,4 Other current liabilities 18,5 7,6 5,8 TOTAL LIABILITIES 35,6 15,2 13,7 Renforcement des fonds propres sans endettement significatif (M 0.7 yc C/A shareholders)

13 NETGEM on the stock market Eurolist C, code ISIN FR Price on : 3,99 Stock market capitalisation : 125M Average volume 12 months: 200,000 Floating : 48,2% Quantity of shares in circulation: Liquidity contract (AFEI Charter) implemented 15/1/07 Endowment : 0,1M + securities En 1 year 1st year +High 5,59 4,77 +Low 1,91 3,68 Var 78,26% 7,89% Var MS190 13,77% 1,98% Var SBF ,06% -0,87% 1 month 4,44 3,68 2,24%

14 Outlook 2007 France: Market 1. The fixed operators market continues to consolidate Reduction of rate of dependency at end of Massive investments in fibre optic. 100% high-definition / VOD eligibility 3. Foreseeable arrival of new actors: Mobiles operators Distribution networks

15 Evolution of the offer Adjustment of the current offer and of the industrial model Meet acquisition cost reduction expectations Investment in services: Pressure on the ARPU for our customers as from 2008 Services linked to fixed mobile continuity and non-linear video Internal development or external growth

16 International development strategy Great Britain appears to be the most mature market in Europe The Group will launch a comprehensive TNT + video on demand offer there as a white label Permit Internet access providers and other service distributors to rapidly offer a service that competes with the one offered by the historical operator The rest of the world offers various opportunities, but no significant contribution before Netgem will have to adapt its human resources in order to support these opportunities

17 In conclusion A key position in France. Leading TV convergence market A proven capacity for innovation, reactivity and technological leadership An industrial model that is currently being adapted to follow growth. An economic model linked to subscriber acquisition, led to evolve towards services and customer valorisation. At international level, a market on the verge of explosive growth

18 Calendar of financial announcement Results 1st q Week beginning Results 2nd q Week beginning Six-monthly accounts 2007 Week beginning