2017-2018 full-year results

Confirmed rebound in business volumes in Q4

Strong increase in net income in second half

Group CEO Olivier de la Clergerie made the following comments: "The overall performance in 2017-2018 was disrupted by a complex economic environment due to the ongoing and sharp increase in the price of memory components throughout the period. However, we did not slow down our operating plan, which aims to boost our advantages and to launch high-growth projects in the short and medium term. We also demonstrated our ability to make structural external acquisitions during the financial year, including the successful consolidation of Materiel.net, and the purchase of a 100% interest in the Olys Group, which operates the BIMP and GDA i-Tribu retail outlets that act as Apple distributors for business and retail customers. The improvement in business volumes recorded in the last quarter, and our sound fundamentals, combined with our new expansion drivers, give us confidence in our ability to execute our operating plan. Based on our positioning as a specialised multi-brand distributor, we are aiming for double-digit like-for-like growth in the 2018-2019 financial year, and will derive a mechanical benefit from the addition of the Olys Group."

SIMPLIFIED FULL-YEAR INCOME STATEMENT (1 APRIL-31 MARCH)

EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortisation

NB: The Olys Group was consolidated on 31 March 2018, and made no contribution to the net income for the financial year.

OVERVIEW OF THE FINANCIAL YEAR

The Group generated revenues of €472.1 million over the financial year. B2B business volumes increased to €120.7 million, and now account for 25.5% of total revenues. The roll-out of the store network is ongoing, and included 29 stores at 31 March 2018, with revenues of €53 million.

The Group's average basket continued to increase, and amounted to €344, excluding tax, compared with €321 excluding tax the previous year. The Group attracted 470,000 new (B2C and B2B) customers over the financial year.

The gross margin recorded a marked increase. The “Purchasing” synergies implemented with Material.net enabled a 0.9 point increase in the margin, which now amounts to 17% of revenues compared to 16.1% in the previous financial year. The gross margin amounted to 17.2% of revenues in the second half.

EBITDA amounted to 3.1% of revenues compared with 3.7% in the previous financial year as a result of the significant number of expansion plans launched during the year (move to the new head office in Limonest, development of the information systems and IT platforms, launch of the operations in Spain, and setting up a B2B team in the Paris region, etc.).

Net financial expense amounted to €1.0 million compared to €0.9 million in 2016-2017, while the tax charge amounted to €2.3 million compared to €4.4 million. Net income Group share amounted to €5.4 million overall.

The structure of the balance sheet remains sound, including the Olys Group and the Group's new head office. Shareholders' equity amounted to €60.7 million (€54.9 million at 31 March 2017) compared to tightly-controlled net debt of €51.4 million (€36.2. million at 31 March 2017), giving a debt-to-equity (gearing) ratio of 0.85 at the financial year-end, compared with 0.66 last year.

Dividend: as part of the current development trend, the Annual General Meeting scheduled for 28 September 2018 will be asked not to pay any dividend for the financial year just-ended. The Meeting will also be asked to approve the merger & absorption of Domisys by LDLC Group.

OPERATIONAL PRIORITIES AND OBJECTIVES

The 2018-2019 financial year will benefit from the consolidation of the Olys Group, and should also reap the initial rewards of the major growth investments initiated in 2017-2018, including double-digit like-for-like growth.

Given its sound fundamentals and the initiatives implemented, LDLC Group is confirming its goal of reaching €1 billion in revenues by 2021, with an EBITDA margin of between 5.5% and 6%. The Group will have around 100 stores at that point.

Next meeting:

At 10.00 am on 15 June 2018, information meeting at the Edouard VII Conference Centre, 23 square Edouard VII, Paris 8^th District

Next release:

On 26 July 2018 after market close, Q1 2018-2019 revenues

GROUP OVERVIEW

The LDLC Group was one of the first to venture into online sales in 1997. Today, as an e-commerce leader in the IT and high-tech market, the LDLC Group operates via 11 websites, including 6 commercial sites, serving consumers and professionals alike. The Group employs 1 000 people.

Winner of a number of customer service awards and widely recognised for the efficiency of its integrated logistics platforms, the LDLC Group is also developing a network of branch stores and franchises.

Read more at www.groupe-ldlc.com

ACTUS