DIRECT ENERGIE : H1 2014 Financial Results. Acceleration of Sales growth. Turnover and profitablity rise.

PRESS RELEASE

Paris, October the 14th 2014

H1 2014 Financial results

Acceleration of sales growth :

Acquisition of 176,000 new customer sites: up 66% (from H1 2013)

Customer base increased to 1,174,000 customer sites: up 13,6% (from H1 2013)

Acquisition target for 2014 raised to 400,000 new customer sites

Turnover and profitability rise despite adverse impact of mild winter

(*) retrospective application of IFRS 10 and 11, and new presentation of the Mark-to-market variations on commodity derivatives other than trading instruments

A sustained acquisition pace, enabling the Group to offset the impact of an extremely warm winter

In the first half of 2014, Direct Energie steps up again the pace of acquisitions, helped by an improving regulatory framework that secures its margins. The Group has acquired 176,000 new customer sites, up 66% from H1 2013. With 1,174 million customer sites in its portfolio, the Group is moving ahead on its annual target of 340,000 acquisitions.

This commercial performance, supported by an advertising campaign, has enabled to offset the adverse impact of an extremely warm winter after an unusually cold winter in 2013. Sales reach €422.6 m, up 3.3% from H1 2013.

The Group points out that the access to GDF Suez's customer file decided by the Competition Authority will level the chances to compete equally with the incumbent. If confirmed, this decision will act as a significant acquisition stimulus for the coming years.

Sharp growth of profitability

During the first half, Direct Energie took advantage of the improved regulatory framework to raise its gross margin by 18.0% to €61.5 m. This increase, combined with tight cost control and lower amortisation charges, has boosted the current operating income to €13.6 m. After Mark-to-market variations of fair value on derivative instruments other than trading (- €4.2 m) now classified under current operating income, the net income reaches €10.2 m.

The change in working capital shows a significant drop of €51.2 m in H1, but only reflects the normal seasonality of the operating cycle. The financial structure continues to strengthen with equity amounting to €41 m, i.e. 16.3% of total assets (vs. 12.9% on 30 June 2013) while the net financial debt remains at a low level of €5.8 m.

The private bond placement in July 2014 was a success

In order to improve its financial flexibility and enhance its growth strategy, Direct Energie successfully placed a first bond issue of €40m maturing in December 2019 for €28.5 m (coupon of 4.70%) and July 2021 for €11.5 m (coupon of 5.00%).

Adjustment of 2014 targets

Ahead on its projections, Direct Energie raises the annual customer site acquisition target from 340,000 to 400,000. This trend should enable the Group to reach a turnover growth between 7% and 10%, depending upon weather conditions. Helped by tight cost control, Management also confirms its target of doubling current operating income in 2014.

Xavier Caitucoli, Chairman and CEO of Direct Energie, commented: "Direct Energie has benefited from a greater than expected commercial development in the first half, which will be confirmed on

the second half and for the next accounting periods. Each month, the Group strengthens his position as the third-largest provider of electricity and gas in France."  

Publications
The Group has put its first half management report on its website (www.direct-energie.com:
http://www.direct-energie.com).

About Direct Energie
Direct Energie is France's third-largest electricity and gas provider, serving more than 1.2 million customers sites (residential and businesses). Direct Energie has also developed its offer for companies and local authorities, with more than 100,000 delivery points.
As an integrated energy group in France, Direct Energie produces and supplies electricity, supplies gas, and offers energy services to its customers.
The group is also operating in Belgium (Wallonie) and aims to be active on the whole territory by end 2015.
In 2013, the group generated turnover in excess of €760 million and delivered 8.8TWh of energy.
Direct Energie's success has been underpinned for more than the past decade by its technical expertise, excellent customer relationships and capacity for innovation.
Direct Energie is listed on the Alternext compartment of Euronext Paris Stock Exchange (ALDIR / FR0004191674).
For more information, visit our website www.direct-energie.com:
http://www.direct-energie.com

Contact presse :                                                                                              
Image Sept                                                                                                     
Grégoire Lucas - glucas@image7.fr:
mailto:glucas@image7.fr
Tel + 33 (0)1 53 70 74 94                                                                                                                                   
Marie Artzner - martzner@image7.fr:
mailto:martzner@image7.fr
Tel + 33 (0)1 53 70 74 31 / + 33 (0)6 75 74 31 73

CM CIC Securities
Stéphanie Stahr -  stephanie.stahr@cmcics.com:
mailto:stephanie.stahr@cmcics.com
Tel + 33 (0)1 45 96 77 83

Direct Energie
Ivan Roussin 
ivan.roussin@direct-energie.com:
mailto:ivan.roussin@direct-energie.com
Tel +33 (0)6 19 30 05 03

Mathieu Behar
Mathieu.behar@direct-energie.com:
mailto:Mathieu.behar@direct-energie.com
Tel +33 (0)6 12 48 85 85