Results 1st Half, 2014

Press Release

Operating result: 636 K€ (-45,4%)

Net income before amortization of goodwill : 732 K€ (-36,7%)

Aix en Provence, June 16th, 2014

Custom solutions France (ISIN: FR0010889386 - Ticker: ALSOL), who are a key player in Operational Marketing Solutions in Europe, announced today its non-audited consolidated sales turnover for the first year half of 2014 (from Oct 1st 2013 till March 31, 2014).

SALES TURNOVER - FIRST YEAR HALF, 2014

The figures are extracted from the unaudited interim financial statements.

In millions euros H1 2014 H1 2013 Variation

2014/2013

Sales Turnover 9 461 9 128 +3,7%


Operating Result In % of TU Financial Result In % of TU

Current Result before taxes


In % of TU Exceptional Result In % of TU

Net income before amortization of goodwill In % of TU

636

6,7%

551

5,8%

1 187

12,5%

-97

-1,0%

732

7,7%

1 165

12,8%

434

4,8%

1 599

17,5%

129

1,4%

1 156

12,7%

-45,4%

+27,0%

-25,8%

n/s

-36,7%

Amortization of goodwill -161 - n/s

Result of equity-accounted companies

-21 - n/s

Consolidated net income

In % of TU

550

5,8%

1 156

12,7%

-52,4%

MAINTENANCE OF THE PROFITABILITY IN SPITE OF THE GROSS MARGIN DECLINE


As previously announced, the Group's operating result was impacted by lower gross margin and amounts to 636 K €, or 6.7% of sales.
The financial result amounts to 551 K €, by maintaining a high level of cash (close to € 23 million) and
the optimization of investments.
www.customsolutions.fr/en

CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z

ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: contact@customsolutions.fr

Press Release

Thus, the profit before tax fell by only 26% and remains at a high level of 12.6% of sales at 1,187 K €. The exceptional result amounts to € -97 K and corresponds to provisions for risks.
The net income before amortization of goodwill amounts then to 732 K €, representing a net margin of 7.7% significantly affected by the depreciation of the equity shares of Q3, which is
behind its development plan. The consolidated net income stands at 550 K € or 5.8% of sales.
This result does not take into account the two new acquisitions (APP Group and Lojaali) occurred in

March 2014 and will be included as of April 1, 2014.

KEY FEATURES OF THE FIRST HALF OF 2014

With the return to a slight increase in activity during the first half of 2014, the result was marked by:

An unfavorable product mix, despite a growth in operational marketing, having led to a decline in gross margin, which increased from 67% of sales in the first half of 2013 to 61% in the first half of 2014.

An increase in operating expenses (excluding HR), with a strong increase in purchases of goods, explained by the change in the product mix. Other purchases and external expenses were stable (+1%), despite a sharp increase in expenditures related to interim 63%, which is due to a stronger seasonality than usual and the change of ERP occurred on October 1st,
2013.

The control of personnel costs, falling by 11.7%, mainly related to the deferral of the effect of the departures from the previous year, and this despite the deployment in the first half of a sales force in Europe (including Spain/Portugal, Benelux and Sweden), as part of the acceleration of international expansion of the Group.

Maintaining a consistently high level of cash associated with optimized investments, allowed the company to achieve a historic financial result.

The increase in capital expenditures in connection with the development of the group's

internal tools (ERP), but also digital products.

The confirmation of the opening of three new trade offices in May in London, Warsaw and

Milan, and the closure of the office in Stockholm since acquiring Lojaali, which now cover
the Nordic countries.
www.customsolutions.fr/en

CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z

ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: contact@customsolutions.fr

PERSPECTIVES 2014


The Group intends to continue its international expansion and its investments in digital, while continuing to focus on the Operational Marketing.

Press Release

It expects a continuation of organic activity in the second half but with a gross margin that should meet a normal level of 65%.
Finally, the recent acquisitions will bring the Group's growth in the short term and allow it to find improved results in the second half despite continued expenses on sales development and investment.

Cedric Reny, CEO CUSTOM SOLUTIONS, comments: "These results are an illustration of the news in France with a depressed economic environment that requires more investments to find the path to growth. The change of our ERP affected the performance of the company more than expected but should provide us the tools for our development in France and Europe for years to come, and join us in the digital turn, taken in the past two years. Starting international operations is slower than expected but shows encouraging signs. It will represent a real growth for the Group in the coming years. The investment efforts are maintained. Finally, the Group's recent acquisitions will bring back our dynamic for the months and years to come and should allow a return to sales growth in the second half of this year.»

IN THE NEXT PRESS RELEASE Annual Sales Turnover 2014

On December 9th, 2014

(After the market close)

www.customsolutions.fr/en

CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z

ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: contact@customsolutions.fr

CUSTOM

SOLUTIONS

Toujouu plus procht de votre marché

Press Release

www.customsolutions.fr/en

CUSTOM SOLUTIONS.capitaiof 4 863 OSO RCS {SIRET): Aix en Provence 500 517 776 {00042) VAT FR 33 500 517 776·APE 7311 z

Zl Rousset,135 Avenue Vjctoire,13790 Rousset {France) Phone: ;-33 {0)4 86 9142 00 ,. Fax: +33 {0)4 86 9142 30 e-ma ; contact@customsolutions.fr


ABOUT CUSTOM SOLUTIONS

Press Release

Founded in 1997, Custom Solutions is a major player in Operational Marketing Solutions.
The company helps its clients to develop their sales, acquisitions and retention of consumers and motivate their sales networks by designing and deploying innovative and effective marketing offers throughout France and Europe.
Thanks to its 17 years of expertise and its global offer, Custom Solutions have built a robust reputation amongst their 300 prestigious clients, including Danone, Nestlé, Ferrero, Procter and Gamble, Sony, LG, Warner Bros, Orange, Free, Renault or Total..
In 2013, the Company announced its 3 years strategic plan called RIO 2016, with the objective of establishing Custom Solutions as a major European player in operational marketing. The project is structured around three levels:
- - External acquisitions
- - Innovation in new products in the marketing and the digital fields
- - International development

On this basis, Custom Solutions became a 25 % shareholder in "Q3", who are a leading company in social networking who have developed a ground breaking virus mobilisation software solution. Custom Solutions also acquired 70% of a French "packaged solutions" marketing group called "APP", as well as a 55% stake in Finnish promotions agency "LOJAALI" and its Swedish partner "LOJALTIC".

Listed on Euronext's Alternext Paris

ISIN : FR0010889386 - Mnemonic : ALSOL

CUSTOM SOLUTIONS

Cédric Reny

CEO

David Lebec

Administrative and Financial Director

Phone : +33 (0)4 86 91 41 43

investisseurs@customsolutions.fr

CONTACTS

GILBERT DUPONT Jérôme Guyot Listing Sponsor

Phone : +33 (0)1 40 22 45 87

jerome.guyot@gilbertdupont.fr
https://www.linkedin.com/profile/view?id=154292266&trk=na
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www.customsolutions.fr/en

CUSTOM SOLUTIONS - capital of € 4 863 050 - RCS (SIRET): Aix en Provence 500 517 776 (00042) - VAT FR 33 500 517 776- APE 7311 Z

ZI Rousset, 135 Avenue Victoire, 13790 Rousset (France)- Phone: +33 (0)4 86 91 42 00 - Fax: +33 (0)4 86 91 42 30 - e-mail: contact@customsolutions.fr

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