2014 HALF-YEARLY RESULTS Continued revenue growth Run rate for bank card collections in excess of 560 million Strategic investment initiative is maintained Brussels, 30 July 2014, 7:30 AM Regulated information RENTABILIWEB GROUP (ISIN BE0946620946 trading symbol BIL) is today publishing its financial statements for the first six months of the 2014 fiscal year. The first half of fiscal 2014 saw a new acceleration in the development of Be2bill, Rentabiliweb's bank card payment solution. The online activity has confirmed its growth and its popularity with e-merchants quarter after quarter, and posted a run rate* of 560 million for bank card collections at 30 June. Over the half-year Rentabiliweb maintained its investment initiative, which is wholly self-financed. Jean-Baptiste Descroix-Vernier, the President of Rentabiliweb Group announced, "During the first half of this fiscal year, we continued an active, self-financed investment policy. We are making this effort as our priority is still to win market shares in the bank card services sector. The success enjoyed by our online solution Be2bill has convinced us to continue in this direction, so that, starting in the fall, we can break into the card-present market, for which the challenges are increasingly similar to those of the online market. Our expertise in the field of shopping cart conversion will provide genuine value-added for card-present merchants." * Run rate for bank card collections: payments collected in June projected over an entire year Key figures for the first half of 2014 1
Operations The consolidated revenue for Rentabiliweb Group is 33.9 million, up by almost 2% compared to the first half of 2013. For the B to B segment, the revenue for the first half of 2014 is 15.1 million, an increase of 7% compared to the first half of 2013. Over this first half-year, the Direct Marketing and Telecom business lines enjoyed strong commercial momentum, associated with the contracts signed at the end of 2013, and therefore posted an increase in their revenues. The micropayment business line, which is not seen as strategic given the size of the market and its prospects, saw negative growth, as expected. The continued ramp-up of Be2bill in the online payment sector During the first half of 2014, the bank card services for online payments, driven by the Be2bill solution, continued to win market shares, in particular with major leading e-merchants, such as Allopneus.com, which is the 12 th leading French e-merchant (source: ecomercemag, 17/06/2014). Be2bill now covers all the vertical markets, from retail and digital, to travel and the sharing economy. Thus, at 30 June 2014: - The run rate for bank card collections exceeded 560 million, an increase of 47% compared to 381 million at 31 December 2013, and 39% compared to 31 March 2014. - The average commission rate remained close to 1%, even though major clients have adopted the Be2bill solution. This shows the Group's capacity to monetize its value-added for shopping cart conversion and fraud management, above and beyond classic bank card processing. A new stage in the development of Be2bill: card-present payment solutions Following on from its success in the field of online payment, Rentabiliweb has taken a strategic initiative by deciding to deploy its payment solution on the card-present market, which in France is estimated at more than 500 billion in transactions per year (ten times the size of the online payment market). A dedicated team is being set up and major investments in R&D, hardware and software are being made in order to ensure the quality and innovative nature of this offering, as Rentabiliweb believes that the line between online and offline retail is becoming increasingly blurred. Be2bill's approach, which is based on optimum shopping cart conversion, will help to provide value-added for card-present merchants. The Group will launch this solution during the second half of 2014. The revenue for the B to C segment during the first half of 2014 totals 18.8 million, a slight decrease (-2%) compared to the year-ago figure, with no impact on EBIT. These performances correspond to Rentabiliweb's expectations for the online content publishing market. The Group's strategy involves generating significant margin levels on these B to C activities, which are also a testing ground for functionalities that can potentially enrich the Group's payment solutions. EBIT The initial investments made for the deployment of the payment solution on the card-present market inevitably impacted the EBIT for the B to B segment, which totalled ( 1.6 million). The B to C segment has confirmed its capacity to generate solid, long-term levels of profitability and posted EBIT of 4.6 million for the first half of 2014. The EBIT for the Corporate division (primarily the Group's overheads) is ( 1.9 million), in line with the first half of 2013, due to the stability of the Group's structure. Overall, the consolidated EBIT totalled 1.1 million for the first half of 2014. 2
Financial position and cash flow The Group ended the first half of 2014 with a financial position that is still extremely robust. The surplus cash at 30 June 2014 was 11.6 million, up by 5.8 million compared to 31 December 2013. This increase can be explained by both a significant improvement in working capital and by the increase in the credit balance of the settlement accounts, due to increased bank card collections. The shareholders' equity was 72.3 million at 30 June 2014. Rentabiliweb self-financed all of its investments and therefore currently does not have any debt. Prospects Rentabiliweb will continue its strategy of winning market shares and of developing its online and card-present payment solutions. The Group also intends to expand internationally within the SEPA, via the subsidiary incorporated in the Netherlands at the start of the year. For its Be2bill online payment solution, Rentabiliweb's ambition is to reach a run rate** for expected payments of more than two billion euros and a run rate for bank card collections of more than one billion euros at 31 December 2014. In order to achieve these milestones, the Group plans to continue its investments over the second half of 2014, while maintaining EBIT at least equal to that posted for the first half-year. ** Run rate for expected payments: payments expected in December projected over an entire year Next press release Publication of Q3 revenue: 5 November 2014. Download the press release from the Group's institutional site: http://www.rentabiliweb-group.com/en/?p=9425 3
APPENDICES INCOME STATEMENT Group (in thousands) S1 2013 S1 2014 S1 2014 vs S1 2013 Consolidated revenue 33 260 33 905 +1,9% Gross margin 19 826 19 819-0,0% Gross margin rate 59,6% 58,5% -1,2 points EBITDA 2 673 1 782-33,3% As a % of revenues 8,0% 5,3% -2,8 points EBIT 1 874 1 064-43,2% As a % of revenues 5,6% 3,1% -2,5 points Operating income 1 397 1 193-14,6% As a % of revenues 4,2% 3,5% -0,7 point Net consolidated income 1 098 1 630 +48,4% As a % of revenues 3,3% 4,8% +0,9 point B to B (in thousands) S1 2013 S1 2014 S1 2014 vs S1 2013 Consolidated revenue 14 096 15 081 +7,0% Gross margin 6 813 6 986 +2,5% Gross margin rate 48,3% 46,3% -2 points Other operating incomes 68 7-89,0% Recurring operating expenses (3 798) (3 932) +3,5% Payroll expenses (3 488) (4 249) +21,8% EBITDA (405) (1 187) -193,2% As a % of revenues -2,9% -7,9% -5 points Depreciations and amortizations (463) (424) -8,3% EBIT (868) (1 612) -85,7% As a % of revenues -6,2% -10,7% -4,5 points 4
B to C (in thousands) S1 2013 S1 2014 S1 2014 vs S1 2013 Consolidated revenue 19 164 18 824-1,8% Gross margin 13 013 12 833-1,4% Gross margin rate 67,9% 68,2% +0,3 points Other operating incomes 0 1 n/a Recurring operating expenses (6 848) (6 745) -1,5% Payroll expenses (1 399) (1 402) +0,2% EBITDA 4 766 4 687-1,7% As a % of revenues 24,9% 24,9% +0 points Depreciations and amortizations (147) (95) -35,3% EBIT 4 619 4 592-0,6% As a % of revenues 24,1% 24,4% +0,3 points Corporate (in thousands) S1 2013 S1 2014 S1 2014 vs S1 2013 Consolidated revenue 0 0 n/a Gross margin 0 0 n/a Gross margin rate n/a n/a n/a Other operating incomes 2 103 n/a Recurring operating expenses (539) (801) +48,6% Payroll expenses (1 152) (1 020) -11,5% EBITDA (1 689) (1 718) -1,7% As a % of revenues n/a n/a n/a Depreciations and amortizations (189) (198) +4,9% EBIT (1 878) (1 916) -2,0% As a % of revenues n/a n/a n/a 5
Consolidated statement of financial position BALANCE SHEET: ASSETS 2013 S1 2014 Goodw ill 50 624 50 624 Fixed assets 5 883 5 687 Deferred tax assets 4 106 5 228 Customers and other debtors 25 731 22 634 Payable tax assets 4 130 3 425 Cash and cash equivalents 5 779 11 583 OVERALL TOTAL ASSETS 96 252 99 181 BALANCE SHEET: LIABILITIES Equity 71 042 72 327 Provisions 908 921 Financial liabilities 13 12 Deferred tax liabilities 888 518 Suppliers and other creditors 20 034 22 569 Payable tax liabilities 3 367 2 834 OVERALL TOTAL LIABILITIES 96 252 99 181 6
Consolidated statement of cash flows (in thousands of euros) S1 2014 S1 2013 Net earnings from integrated companies 1 630 1 098 Elim. of the amortisations and provisions 793 761 Elim. of the variation of deferred taxes (1 148) (667) Elim. of disposal capital gains or losses 9 0 Other proceeds and expenses having no incidence on the cash (454) (260) Incidence of the change in working capital requirements 5 706 519 Net acquisitions of fixed assets (677) (934) Net cash from operating activities * A 5 858 518 * Before financial investments, capital operations and financing operations Financial acquisitions and price supplement payments (126) 154 Variation of the financial assets 1 0 Impact of changes in scope of consolidation 0 5 Capital increase 6 0 Dividends paid 0 0 Treasury shares transactions 63 (458) Repayment of loans and other debts 0 4 Net cash from investment and financing operations B (56) (294) Change of the cash and cash equivalents A+B 5 802 224 Net cash and cash equivalents at beginning of the period 5 779 7 806 Net cash and cash equivalents at end of the period 11 583 7 995 Impact of exchange rate variations 1 (35) Net increase (decrease) in cash and cash equivalents 5 802 224 7
CHANGE IN CONSOLIDATED EQUITY (in thousands of euros) Share capital Premiums Group reserves Currency translation differences Net profit for the year Revaluation reserves Treasury shares Instruments settled in the Company s shares Equity attributable to owners of the parent Noncontrolling interests Position at December 31, 2012 23 396 14 105 29 473 (46) 1 114 0 (1 589) 2 132 68 585 0 68 585 Share capital increase 0 0 0 0 0 0 0 0 0 0 0 Equity Appropriation of earnings 0 0 1 114 0 (1 114) 0 0 0 0 0 0 Dividends paid 0 0 0 0 0 0 0 0 0 0 0 Net profit for the period 0 0 0 0 2 869 0 0 0 2 869 48 2 917 Currency movements 0 0 0 (7) 0 0 0 0 (7) 0 (7) Changes in consolidation scope 0 0 0 0 0 0 0 0 0 6 6 Other changes 0 0 (386) 0 0 0 (913) 841 (458) 0 (458) Position at Decembre 31, 2013 23 396 14 105 30 202 (53) 2 869 0 (2 502) 2 973 70 989 54 71 042 Share capital increase 3 3 0 0 0 0 0 0 6 0 6 Appropriation of earnings 0 0 2 869 0 (2 869) 0 0 0 0 0 0 Dividends paid 0 0 0 0 0 0 0 0 0 0 0 Net profit for the period 0 0 0 0 1 611 0 0 0 1 611 18 1 630 Currency movements 0 0 0 12 0 0 0 0 12 0 12 Changes in consolidation scope 0 0 0 0 0 0 0 0 0 0 0 Other changes 0 0 (298) 0 0 0 63 (128) (363) 0 (363) Position at June 30, 2014 23 398 14 109 32 773 (41) 1 612 0 (2 439) 2 844 72 255 72 72 327 8
About Rentabiliweb Founded in 2002, Rentabiliweb Group offers businesses and webmasters the leading platform of website traffic monetisation services (e.g. payment and micropayment solutions). It has been definitively approved as a Payment Body by the Banque de France and as a member of the French Bank Card Group (Groupement Carte Bancaire) for the provision of online payment solutions, with the Be2Bill solution. It also runs affiliate programs, offers online advertising space brokerage and interactive voice services for offline media, and provides acclaimed expertise in loyalty programs and direct marketing. Rentabiliweb Group is also one of the premier French-language content publishers, with a package of services spanning the full range of mass-market entertainment including astrology, community services, casual gaming, services for the general public, advice for Internet users, personal ads and dating, women s wellbeing, humour, entertainment and more. Listed on Compartment C of the Euronext Brussels and Paris stock markets, the Group currently has 20 subsidiaries in Europe and America, with a workforce of over 250 worldwide. In 2013, Rentabiliweb Group reported revenue of 72 million and operating income of 3.2 million. Rentabiliweb Group is a socially responsible company in its sectors of activity, and rigorously applies the 10 principles laid out by the UN Global Compact. The Group is eligible for FCPI investment funds and was awarded the OSEO Innovative company kitemark. Group shares are eligible for French PEA-PME share savings plans. CONTACTS Corporate Communication IMAGE SEPT Anne Auchatraire aauchatraire@image7.fr Claire Doligez cdoligez@image7.fr +33 1 53 70 74 70 Investor Relations CALYPTUS Mathieu Calleux mathieu.calleux@calyptus.net +33 1 53 65 37 91 9