Adomos 2016 results : Net earnings of €1.99 million, up 61%

Paris, March 16, 2017

• 85% growth in operating income
• Net earnings of €1.99 million, up 61%
• Record 27% profitability
• Excellent outlook for 2017

  In € thousands *	2016	2015	Change
  Operating income	7,334	5,442	↗	35%
  Operating profit	1,528	825	↗	85%
  Income from ordinary activi- ties before tax	1,997	1,320	↗	51%
  Net profit	1,995	1,236	↗	61%
  Net profitability on operating in- come	27%	23%	↗
  Net earnings per share	€0.006	€0.004	↗	50%
  *Audited annual financial statements. Audit report in preparation.

  After several years of sustained growth, Adomos brought success to a new level in 2016, combining strong business growth and exemplary cost control to achieve the highest level of profitability in its history: 27%. The new year is off to an excellent start, with robust growth expected once again in 2017.

  Operating income up 35%

  Operating income rose 35% in 2016 to €7.3 million, the highest level in value terms since 2007.

  Both main business lines achieved growth: 10% for rental of qualified leads and 51% for the real estate business and other products. Adomos recorded 406 reservations compared to 232 in 2015, representing an increase of 75%. At 12.31.2016, the company's overall reservations (equivalent to orders) stood at more than twice the previous year's level.

  Record 27% profitability, the highest level since the creation of Adomos

  Operating profit came to €1.528 million, compared to €825 thousand in 2015 (+85%). Growth in profitability was driven by a new model for Adomos based on automation of processes. This was made possible thanks to substantial investments in technology: with only 15 employees, fixed costs have been reduced to a bare minimum; as Adomos' partnering sales representatives / advisors are independent contractors, variable costs essentially consist of commissions paid in proportion to sales.

  As such, after reaching the break-even point, each sale provides additional net margin, thereby generating this spectacular rise in operating income.

  Income from ordinary activities was up 51% to €1.99 million, compared to €1.32 in 2015. The company is completely free of debt and recorded a €450 thousand reversal of provisions for investments in its subsidiary Selectaux, which was re-launched two years ago and now stands out as a key player in its strategic niche of monetizing email databases and performance marketing - potentially an exceptional growth driver in the coming years.

  Net profit came to €1.995 million compared to €1.236 million in 2015 (+ 61%), for an all-time record profitability rate of 27%. With a six-fold reduction in staff and fixed costs divided by three compared to 2006 and 2007, in the future Adomos could achieve sales levels comparable to that period with significantly greater profit.

  2017: growth surging ahead

  The fundamental growth dynamics in 2016 have become even more solid in 2017.

  • Interest rates remain at historically low levels, providing support for a market currently exhibiting record performance;

  • Demand for leads is growing, bolstered by competition among established real estate players and market newcomers;

  • Adomos's offering in terms of real estate programs, which already accounts for 60% of new properties for sale in France, will continue to expand, increasing the conversion rate and thus boosting sales;

  • The network of advisors / partners will continue to expand by some 35%, automatically increasing the number of sales;

  • At March 15, 2017, reservations were on the rise and notarized sales were already up 80% year-on-year;

  • The new land and property administration activities should begin to contribute to the company's business.

    Adomos also enjoys an extremely favorable financial position at the start of 2017: the company is highly profitable, has no financial debt and looks forward to significant growth thanks to the strength of its business model, with each additional sale contributing directly to profitability.

    Finally, Adomos recalls the Extraordinary General Meeting scheduled for April 3, 2017. If the resolutions put before the Meeting are adopted, the company will be able to:

  • reward all shareholders with free share subscription warrants to be issued in early April;

  • contribute to convincing institutional investors (mutual funds, UCITS, etc.) to purchase Adomos securities thanks to the reduced volatility brought about by the reverse stock split.

The financial statements have been audited. The audit report for certification will be published on the company and Euronext websites by April 30, 2017, following specific work currently underway.

Contact: Fabrice Rosset, +33 1 58 36 45 00 fabrice.rosset@adomos.com

Dimitri Lecerf, +33 1 44 50 54 72, dim itr i.l ec erf @k able - c f .c om