Groupe Partouche : 31/01/2017 - Résultats annuels 2016 Version Anglaise

Groupe Partouche - 2016 : new growth in business activity & Improvement of the margins

• Turnover of € 405 M, up by 2,0% (on a like-for-like)
• EBITDA margin up to 19,8%
• Current operating income at € 41,4 M, up by 22%
• Net income doubled at € 18,6 M, o/w Group share of € 11,1 M
• Net debt stable at € 66 M (leverage at 0,8x EBITDA)

Paris, 31st of January 2017,

During the meeting it held on the 24th of January2017, the Supervisory Board, reviewed the management report of the Executive Board and the annual consolidated statements of the financial year ended 31st October 2016 that is presently being audited.

Fabrice Paire, Chairman of the Executive Board, stated that: « the financial year 2016 witnessed the continuation of the positive trends recorded since several quarters, both in the business activity with a continuous organic growth and in the profitability with new improvements of the Group' margins. These positive bases combined with the strength of our assets and the dedication of all our employees, allows Groupe Partouche to be confident about its future. »

The published consolidated turnover of Groupe Partouche reached at 31st October 2016, € 405.2 M.

On a like-for-like scope of consolidation1, the turnover is up by 2%. The business activity of the financial year 2016 recorded in France, an increase in attendance of 1.2% and of the average basket for 1.9%, as well as an increase in GGR both in table games (+11.2% compared to +8.3% in 2015) and in slots (+1.5% compared to

+0.7% in 2015).

2016 : new growth in income and improvement of the Group' margins

As published, the increase in turnover (+€4.9M) is backed up by the increase in the current operating income (COR) of €7.5M, reaching € 41.4 M and by an EBITDA of € 5.1 M at € 80.1 M, thus representing 19.8% of the turnover, i.e. a significant improvement of the margin of 110 bp compared with the financial year 2015.

On a like-for-like basis, the additional turnover recorded during the year under review € 8 M is backed up by an additional COR of € 4.6 M and the EBITDA increased by € 2.5 M.

The non-current operating income (NCOI) represents an expense of € -19.2 M compared with € - 11.9 M in 2015. The depreciation of non-current assets reached € - 16.4 M, a decrease compared with 2015 NCOI (€ - 21.5 M), and includes:

- An impairment of goodwill reduced to € - 5.7 M compared with € - 21.5 M in 2015,

1 The expression " on a-like-for-like " means in this release : after neutralization of the contribution of :

• Chaudfontaine Casino and Juan Garden Beach Hotel divested in 2015,

• La Trinité-sur-Mer Casino closed during the financial year 2015

- An impairment to real estate assets for € - 10.6 M, as a consequence of special local situations.

Apart from the above mentioned issued, the progress in the non-current operating income is mainly due to lower results in disposals carried out, considering that the financial year 2015 accounted a net income equal to € 7.8 M (+ € 0.1M in 2016).

Taking into account all of the above factors, the operating income of the financial year under review increased and reached € 22.1 M compared with € 22 M in 2015.

The financial income represents a net expense of € - 2.5 M, compared with € - 3.5 M in 2015, mainly due to the decrease in the financial expenses related to the bank debt.

The Group's total tax expense fell by € 8.2 M, from € 9.1 M in 2015 to € 0.9 M in 2016. While the "CVAE" tax on corporate added value remained stable at € 3.3 M, the corporate income tax (including deferred tax) decreased from an expense of € -5.7 M in 2015, to an income of € +2.4 M in 2016, mainly due to the activation of loss carried forward over a reasonable horizon for € 5.3 M on the one hand, and to the mechanical effect of reversals of deferred taxes resulting from the impairment of property assets mentioned above for € 3.5 M on the other hand.

The net income represents a profit with a strong growth, double compared with 2015: from € 9.3 M in 2015 to

€ 18.6 M in 2016, out of which the Group's share is a profit of € 11.1 M compared with the previous € 2 M .

CONSOLIDATED INCOME STATEMENT

Assets of the consolidated financial statement having not been impacted by any divestment, recorded remarkable changes due to an increase under the item trade receivables and other debtors of € 6.9 M and a decrease under the item cash flow of € 12.4 M mainly used for the investments over the period which totaled a net flow of €43.8M, while a net revenue of € 13.1 M was recorded in 2015 due to an important flow of assets divestments, more

particularly in real estates. In 2016, these investments mainly include the construction works of the new casino in La Ciotat.

On the liability side, shareholders' equity progressed slightly reaching € 335.2 M.

Borrowings decreased by € 14.3 M, from € 203.6 M in 2015 to € 189.3 M. An annual repayment of the syndicated loan fell due during the year: € 21.5 M, as well as a reimbursement of the shareholder's advance of € 2.2 M and finally new medium term borrowings were subscribed totaling € 11 M intended to finance the development of the Group.

With a stable net debt at € 66.1 M, the Leverage ratio is still improving at 0.8 times the EBITDA. FINANCIAL SYNTHESIS

(*) the notion of gross debt includes bank borrowings and restated leases, accrued interest, miscellaneous borrowings and financial debts, banking facilities and financial instruments.

• By end of September 2016, the Juan-les-Pins casino moved out from the Garden Beach Hotel that was sold in 2015, to the new premises in the city center, in an area of approximately 1 000 square meters, thereby saving operating expenses.

• Cannes city hall and the Ministry of the Interior granted the Palm Beach casino the authorization to move its business activity to the Hotel 3.14. Renovation works currently under way will allow the start of operations before the 2017 edition of the Cannes Film Festival.

• Construction works of the new casino in La Ciotat continue and the operations will be transferred in June 2017. The innovative design in the open air of this casino will allow games on terrace, thus making it the first establishment designed to propose a new experience and to reconquer a clientele wishing to smoke while playing.

• Other establishments will start refurbishments works during the present financial year, such as Aix-en- Provence, Royat, Dieppe, La Roche-Posay and Saint-Amand-les-Eaux.

• Finally, the construction of a new casino in Pornic will start during the second-half of 2017 and the transfer of the operations is scheduled for October 2018.

• Otherwise, the negotiations that started in June 2016 are still under process regarding the planned divestment of Cannes Balnéaire SA, holder of the legal rights of Palm Beach premises, leased to the Casino de la Pointe Croisette.

Upcoming events :

• Turnover 1st quarter: Wednesday 15th of March 2017 - after the stock market close

• General Meeting : Wednesday 5th of April 2017

Groupe Partouche was established in 1973 and has grown to become one of the market leaders in Europe in its business sector. Listed on the stock exchange, it operates casinos, hotels, restaurants, spas and golf courses. The Group operates 43 casinos and employs nearly 4,500 people. It is well known for innovating and testing the games of tomorrow, which allows it to be confident about its future, while aiming to strengthen its leading position and continue to enhance its profitability. Groupe Partouche was floated on the stock exchange in 1995, and is listed on Euronext Paris, Compartment B. ISIN : FR0000053548 - Reuters : PARP.PA - Bloomberg : PARP:FP

Groupe Partouche Phone: 01.47.64.33.45

Alain Cens, Chief Financial Officer info-finance@partouche.com