GECI INTERNATIONAL : Annual Results 2016-2017 ENG

PRESS RELEASE

Full-year earnings

FY 2016-17

Paris, July 31, 2017 – 7:30 pm

2016-17 FULL-YEAR EARNINGS

• Strategic transition year focused on the subsidiaries' redeployment
• Net income affected by significant non-recurring items
• Financial structure further strengthened in 2017

At the Board meeting on July 28, 2017, the Directors reviewed and approved the annual financial statements for FY 2016-16 ended March 31, 2017.

Consolidated financials

The consolidated financial statements at March 31, 2017 for the GECI International Group (“the Group”) include a full year of business for Eolen, compared with eight months the previous year (Eolen Group integrated in August 2015), and nine months of business for ETUD Integral, acquired at the end of June 2016.

Highlights

During FY 2016-17, the Group continued moving forward with its strategy to redeploy the Eolen companies, adjusting its positioning around strong value-added markets. The Group has set itself a target to consolidate its position on its longstanding markets and extend its range of solutions. Internationally, the Group has continued to expand its operations, particularly with its Brazilian and South African subsidiaries, which have achieved promising levels of development with their sales, while further strengthening their visibility.

Alongside this, at the end of June 2016, the Group acquired ETUD Integral, a company specialized in design, engineering and prototypes for the automotive and transport sectors in particular. This subsidiary is enabling the Group to further strengthen its range of services, particularly with new solutions for urban and interurban mobility, including international markets.

At March 31, 2017, the Group is reporting revenues of €24.3 million, with 17% generated internationally. The breakdown of the Group's operations between its various markets is as follows: 25% for engineering, 52% for IT and telecoms, and 23% for finance. At end-March 2017, the Group had a total of 440 employees in France, Brazil and South Africa.

Current operating income

Current operating income reflects the efforts made in terms of: i/ integrating and putting in place a new strategy for ETUD Integral, ii/ turning around the Eolen companies' business and repositioning them, and iii/ investing in dedicated commercial and recruitment resources for the deployment of the Group's solutions.

In this context, current operating income is negative, coming in at €(1.3) million, compared with a positive result of €1.0 million for the previous financial year. ETUD Integral, which was acquired during the year, contributed €(0.4) million.

Net income

Net income (Group share) shows a €(5.7) million loss, after virtually breaking even at March 31, 2016. This result factors in several non-recurring items, including: i/ over €2 million of provisions for contingencies and liabilities, linked in particular to tax inspections concerning the Eolen companies, ii/ €1.7 million of provisions for the impairment of goodwill for ETUD Integral, iii/ a €0.5 million writedown of customer relationships, and iv/ €1.3 million for a readjustment of deferred taxes.

Financial position

After factoring in earnings for the year, shareholders' equity (Group share) represents €(5.9) million, compared with €(1.9) million the previous year. At March 31, 2017, the Group's net debt came to €(12.3) million, with €0.7 million of cash and cash equivalents.

The capital increases relating to, on the one hand, the issue of free equity warrants[2] (“BSA warrants”) decided on by the General Meeting on March 29, 2016, and on the other hand, the financing based on bonds that can be redeemed in cash and/or converted into new and/or existing shares (“ORNANE bonds”)[3] decided on by the General Meeting on July 28, 2017, are expected to further strengthen the Group's financial position.

In particular, this financing set up with the ORNANE bond issue will enable the Group to restructure its financial debt and support its development. It will also enable it to cover its net working capital requirements.

Outlook

The Group is continuing to move forward with its commercial deployment, focused on expanding its client base and further strengthening the quality of its offers. Alongside this, it is continuing to reorganize its operations with a view to achieving a financial balance by reducing its operating costs.

The Group is looking to capitalize on opportunities for development in engineering, telecoms and IT. With its highly complementary and innovative expert capabilities, the Group is supporting major industrial firms, SMEs and startups, ensuring the success of their digital transition and designing smart services and solutions.

Next dates

• Annual financial report on July 31, 2017
• 2017-18 first-quarter revenues on August 14, 2017
• General Meeting in September 2017

About GECI International: Smart Solutions for a Smart World

The GECI International Group, created in 1980, has established itself as a high-tech engineering specialist. Today, GECI International is targeting high-growth, strong value-added market segments, focusing in particular on engineering, IT, telecommunications and smart products and services. With its world-renowned credibility for advisory services, its expertise and its ability to deploy the most qualified skills, GECI International is supporting businesses with their digital transition and their efforts to design and develop new smart services and solutions.

GECI International - French limited company (société anonyme) with capital of €720,419.36

Registered office: 48 bis Avenue Kléber - 75116 Paris – France - Paris trade and companies register: 326 300 969

GECI International is listed on the regulated market Euronext Paris – Compartment C

ISIN (shares): FR0000079634 – GECP

ISIN (equity warrants): FR0013141249 - GECBS