CEGID : Full year 2014

* up 5.6% at constant scope, excl. Hospitality business in H2 2013 (€1.0M)
** up 3.3% at constant scope, excl. Hospitality business in H2 2013 (€1.9M)

Q4 2014 revenues totaled €75.9 million (€74.1 million in Q4 2013), marking a progression of 2.5% at unadjusted scope and 3.9% at constant scope.
The nearly 26% increase in Cloud services (SaaS/On Demand solutions) led to an increase in total SSRS sales of 4.8% at constant scope (3.7% at unadjusted scope). Against this highly favorable backdrop of the development of Cloud services activities, licenses revenue also increased during the fourth quarter, by 2.4% at constant scope and 1.4% at unadjusted scope.

Services also continued to improve (up 5.7% at constant scope and 4.4% at unadjusted scope) with a more marked increase in activity related to the new "DSN" nominative employee filing procedures.

Cegid's full-year 2014 revenues totaled €266.6 million (2013 revenues totaled €259.9 million), marking a progression of 3.3% at constant scope and 2.6% at unadjusted scope resulting from the sale of the Hospitality business on July 1, 2014.

Over all of 2014, strategic SSRS sales (Cloud Services & Software, Maintenance Software) advanced 5.6% at constant scope (5.0% at unadjusted scope), which is higher than market growth forecasts(1).
Sales of Cloud services (SaaS/On Demand and Portals) continued to rise to €47.7 million, an increase of 25.4% (25.3% at unadjusted scope).
The value of active SaaS contracts as of January 1, 2015 was nearly €116 million(2), up 43% from the estimated value of €80.7 million as of January 1, 2014. This trend underscores Cegid's position as a major provider of business solutions for companies, entrepreneurs and the public sector.
Revenue from recurrent contracts of €155.9 million, including maintenance (software and hardware) and Cloud services, rose 5.7% at constant scope and 4.9% at unadjusted scope, and represented 58% of total sales, an increase of one percentage point compared to the previous fiscal year.
(1) France's software market: up 2.6% (source CXP/PAC) / SSRS up 2% in 2014 (forecasts by IDC and Syntec Numérique)
(2) Value of SaaS contracts, defined as active contracts as of January 1, 2015 extrapolated over their remaining lifetime for fixed maturity contracts and over 36 months generally for automatic renewal contracts, taking into account the churn rate as of December 31, 2014 (internal, unaudited figures).

Cegid continued its expansion, essentially in the Retail sector, with sales rising more than 18.3% to €19.8 million. Cegid's successful international expansion can be accredited to its innovation in the field of mobility and fresh approach to the customer experience, combined with the flexibility of its Yourcegid Retail solutions, available in more than 25 languages and in 75 countries.

Revenue from the non-strategic "Hardware distribution and other" of €23.6 million, or 9% of total sales, was down 8.2%, or 10.1% at unadjusted scope from 2013 (€26.3 million). This reduction was in line with the strategy the Group has been pursuing for the past several years to focus on SSRS and in particular on SaaS/On Demand.

* including Hospitality business, totaling €4.2 million in 2013 (€1 million in Q4 2013).

Over all of 2014, income from ordinary activities, which expresses the Group's operating performance as it shifts toward a recurring revenue model, should continue to rise compared with the previous year (€31.1 million). The margin on ordinary activities should be around 13% of consolidated sales (12% in 2013).
EBITDA for the year is expected to be up compared with 2013 (€69.1 million). It should represent at least 27% of consolidated sales (26% in 2013), i.e. the highest level of EBITDA since Cegid was founded.

Increased cash flow, effective working capital management and the sale of the Hospitality business on June 30, 2014 should lead to a reduction in net financial debt of more than €12 million over the full year. At year end, net financial debt should be around €42 million (€55 million at December 31, 2013). Gearing should improve significantly again, subsiding to nearly 22% (28% at 12/31/2013 and 38% at 12/31/2012).
As of year-end, Cegid also had a syndicated line of credit totaling €170 million, of which €50 million was drawn as of December 31, 2014. This line provides Cegid with a significant drawdown capacity, which it can use to finance its investment needs, in particular acquisitions. Between 2014 and 2017, it reduces annually on June 30.

The MOBICLOTM concept (MObility, BI and CLOud), incorporating the new ways people use software into Cegid solutions, was reflected in the new applications released in 2014:  

• Payroll/Human resources: Cegid, the first provider ready to respond to the new nominative employee filing (DSN)(1) requirements aimed at simplifying the process of filing payroll information, is supporting HR departments with its "Talent Management" solution, as this function undergoes significant change.

• Public Sector: "Channel", the first fully SaaS-based portal dedicated to small local authorities, was a finalist in the IT/Telecommunications category for the Innovation Prize at the 2014 Local Authorities trade show.
• Retail: a new point-of-sale digitization offering for developing the customer experience. The Retail business' Yourcegid Retail Mobile Clienteling Y2 solution was awarded "Gold special mention" by the Equipmag jury. Furthermore, for the second year in a row, Cegid was ranked in the RIS Software LeaderBoard (a.k.a. the "Retail Oscars") top 10 global retail software vendors.
• Business Intelligence has become Business Analytics, with solutions that transform data into management information.

- Yourcegid Retail Intelligence Y2, which transforms all customer and sales data into indicators and interactive dashboards, was also recognized at the Equipmag tradeshow, receiving a "Bronze special mention" from the jury.
- Cegid's solutions now offer dashboards with more than 300 industry-specific indicators in the Group's various areas of expertise: finance, taxation, HR, manufacturing, trade and services, the accounting profession and the public sector.
(1) The new legislation will be implemented progressively on a voluntary basis between now and January 1, 2016, but certain companies and accounting firms are likely to be required to adhere to it by May 2015. Learn more about Cegid's "DSN" solution on Cegid's website (in French): http://media.cegid.com/media/webcast/rh/Comprendre_Anticiper_la_DSN/Declaration_Sociale_Nominative.html

In Q4 2014, Cegid received the distinction of "Elu Service Client de l'Année" ("Customer Service Award"), in the category of Software Provider for BtoB customers, in recognition of the quality of its customer relationships. This award officially recognizes the success of our strategy to ensure customer satisfaction-an ongoing objective to which Cegid has always attached great importance.
The varied, interactive and multichannel customer experience is the result of the work our 2,000 employees do every day to bring customer relationships to life by listening to customers and recognizing their needs, advising, guiding and supporting them.

*Software provider category - Inference Operations study carried out by Viséo Conseil from May to July 2014, applying the "mystery customer" principle to 215 telephone, email, web and social network contacts.

The Cegid Foundation, conceived at the time of Cegid's 30th anniversary celebration, was officially launched in July 2014. The Foundation aims to leverage the power of digital transformation for the benefit of corporate patronage initiatives. In 2014, the Foundation enlisted the support of more than 230 Cegid employees and Cegid's ecosystem to use digital technologies to foster progress in four priority areas: healthcare, education, integration into the workforce and entrepreneurship. In the same year, Cegid entered into five partnerships with nonprofit organizations to collaborate on specific projects: Léon Berard Center, Web@cadémie, Job dans la Ville, EMLyon incubator, Entreprendre pour apprendre and Entrepreneurs dans la Ville. Cegid also signed a framework partnership agreement with the National Board of France's Order of CPAs, and activities have already begun with the Order's Rhône-Alpes chapter.
An endowment fund was set up alongside the Foundation to support more specific initiatives relating to entrepreneurship and to help finance and support hi-tech start-ups.
In 2014, Cegid doubled its corporate patronage initiatives and contributed further forms of support, including donating skills and products and raising awareness about its projects.

Full year 2014 earnings will be published on March 10, 2015 after the market close. The full calendar of publication dates and upcoming events can be found at the following address: http://en.cegid.com/financial-calendar

(The figures included in this press release are consolidated, unaudited, preliminary estimates).

distributed by