Altran Technologies: 2004 Financial Year Results.

PARIS -- Revenues for 2004 of the Altran group stand at EUR 1418.7 m, a rise of 6.0% compared to 2003. On a like-for-like basis, revenues are up by 5.4%.

Is to be noted that revenues announced on 11 Feb 2005 are up from 1418.2 to 1418.7 million euros, after audit adjustments.

Operating Income: EUR 58.7 m, an increase compared to 2003

The operating income for 2004 stands at EUR 58.9 m. The operating margin for the second semester is 4.3%, against 4% for the first semester. Staff numbers deceased on average compared to 2003, thus limiting staff expenses to +0.9%. On the other hand, non-staff expenses are up partly due to an increase in subcontracting, and have attenuated the operating income, which compared to 2003 is up from EUR 14.7 m to EUR 58.9 m.

Financial result: EUR -23.5 m

The financial result is mainly accounted for by interest charges on group debt. It is worth noting that on 3 Jan 2005, the group completely paid off the 2005 convertible bonds which had come to maturity (EUR 332 m).

Net extraordinary result: EUR +35.3 m

Net extraordinary result is mostly accounted for by the gain made through selling stock of the CSR company (EUR +33.4 m).

Amortisation of goodwill: EUR -42.1 m

As in 2002 and in 2003, the group has implemented an impairment test on its assets which results in extraordinary amortisation in addition to the regular amortisation over 30 years.

This had been done because the group considered profitability of assets to be insufficient compared to historic value in the balance sheet.

As a result, the extraordinary amortisation is EUR 23.3 m, and the regular amortisation EUR 18.8 m. Extraordinary amortisation was made on 16 companies in 2004.

Income tax: EUR -29.7 m

Income tax for 2004 came to EUR 29.7 m, and remains a large sum. The implementation of tax integrations which cover 90% of revenues should decrease this expense in the future.

Net result: EUR -2.1 m

The group's net results stand at EUR -2.1 m against EUR -92.0 m in 2003. Results before goodwill amortization is at EUR +41.0 m.

in euros                   31.12.2003   H1 2004   H2 2004  31.12.2004
                                                 Pro forma
-------------------------- ----------- --------- --------- -----------
Sales                       1 337 761   695 816   722 873   1 418 689
-------------------------- ----------- --------- --------- -----------
EBIT
 (after employee profit
  sharing)                     14 678    27 633    31 238      58 871
-------------------------- ----------- --------- --------- -----------
EBIT margin                       1.1%      4.0%      4.3%        4.1%
-------------------------- ----------- --------- --------- -----------
Financial income              (23 730)   (8 525)  (14 944)    (23 469)
-------------------------- ----------- --------- --------- -----------
Exceptional income            (33 317)   14 835    20 500      35 335
-------------------------- ----------- --------- --------- -----------
Taxes                          (2 949)  (28 305)   (1 425)    (29 730)
-------------------------- ----------- --------- --------- -----------
Net result
 before goodwill
  amortization                (45 318)    5 638    35 369      41 007
-------------------------- ----------- --------- --------- -----------
Goodwill amortization         (39 789)  (19 279)  (22 857)    (42 136)
-------------------------- ----------- --------- --------- -----------
Prior period adjustments       (7 389)        -         -           -
-------------------------- ----------- --------- --------- -----------
Net result of integrated
 companies                    (92 496)  (13 641)   12 441      (1 200)
-------------------------- ----------- --------- --------- -----------
Minority interests               (454)      344       582         926
-------------------------- ----------- --------- --------- -----------
Group's net result            (92 042)  (13 985)   11 859      (2 126)
-------------------------- ----------- --------- --------- -----------

Clearer Finances
Targets Met on Factoring and Cash Centralisation

Assets                               31.12.03    30.06.04    31.12.04
---------------------------------- ----------- ----------- -----------
Fixed assets                          636 235     599 938     592 399
---------------------------------- ----------- ----------- -----------
Intangible fixed asset                534 149     514 895     511 420
---------------------------------- ----------- ----------- -----------
 Of which goodwill                    462 790     444 762     442 644
---------------------------------- ----------- ----------- -----------

Tangible fixed assets                  75 782      48 729      45 929
---------------------------------- ----------- ----------- -----------
Financial assets                       56 304      36 314      35 049
---------------------------------- ----------- ----------- -----------
Current assets                        743 805     679 935     952 439
---------------------------------- ----------- ----------- -----------
Inventory & in progress                 2 538       3 643       2 431
---------------------------------- ----------- ----------- -----------
Clients & accounts receivables (1)    376 892     427 978     416 308
---------------------------------- ----------- ----------- -----------
Other receivables                     127 280     111 302     119 787
---------------------------------- ----------- ----------- -----------
Cash & marketable securities          228 608     124 765     397 678
---------------------------------- ----------- ----------- -----------
Accrual accounts                        8 487      12 247      16 235
---------------------------------- ----------- ----------- -----------
Total assets                        1 380 040   1 279 873   1 544 838
---------------------------------- ----------- ----------- -----------


Liabilities                         31.12.03    30.06.04     31.12.04
-------------------------------- ------------ ----------- ------------
Shareholder's equity                 303 564     291 110      303 875
-------------------------------- ------------ ----------- ------------
Minority interest                         17           -          918
-------------------------------- ------------ ----------- ------------
Conditional pre-payments                   0         715          668
-------------------------------- ------------ ----------- ------------
Provisions for losses & charges      103 180     103 053      103 003
-------------------------------- ------------ ----------- ------------
Debt                                 973 279     884 995    1 136 374
-------------------------------- ------------ ----------- ------------
Convertible bonds                    370 648     352 878      577 732
-------------------------------- ------------ ----------- ------------
Loans & borrowing from financial
 institutions                        239 670     188 705      199 296
-------------------------------- ------------ ----------- ------------
Account payable                      312 745     328 349      322 661
-------------------------------- ------------ ----------- ------------
Debt on fixed assets                  37 800       6 367       21 473
-------------------------------- ------------ ----------- ------------
Other liabilities                     12 416       8 696       15 211
-------------------------------- ------------ ----------- ------------
Total liabilities                  1 380 040   1 279 873    1 544 838
-------------------------------- ------------ ----------- ------------
(1) EUR 114.9 m of factoring have been accounted in the 2003 accounts;
    EUR 128.7 m in H1 and EUR 145.4 m in the 2004 accounts.

At 31 December 2004 group debt stabilised at EUR 379.4 m (against EUR 381.7 m at the end of 2003). There was a positive cash flow in the second semester amounting to EUR 37.4 m.

The objectives to clarify financial processes have largely been reached:

--cash held locally within companies is limited to EUR 42 m, as of 31 December 2004, out of the total cash of EUR 398 m.

--client receivables, through the factoring facilities, has opened financing possibilities of EUR 145.4 m, on 31 December 2004, for an objective of around of EUR 150 m.

--following a sharp rise in client receivables in the first semester 2004, the group has made considerable efforts to reduce these in the second semester. The receivables have thus reduced from EUR 427.9 m at the end of the first semester to EUR 416.3 m at year end, in spite of a steep rise in business during the last quarter.

Altran 2008

As newly appointed CEO of the group, Christophe Aulnette has announced the launch of an Altran 2008 plan which has two parts:

Strategy definition

The group has engaged actions to adapt to and anticipate market changes on:

--The definition of the value offering to our customers

--The identification of strong market segments

--Geographic priorities

This strategy will be presented to the Annual General Meeting on 29 June 2005

In a second phase, various actions will be led:

--Requirements for the Altran 2008 plan (by October 2005)

--Organisational changes

--Offer coherence

--Client relations

--Development policy for Human Resources

--Branding

--Offshore policy

Continuing Improvement in Profitability

In spite of the improvement in operating income in 2004, the profitability of the group is still lacking, and must increase semester after semester.

Work will focus on 4 items:

--rationalisation of the business portfolio

--optimisation of functional operations

--reduction of non-productive costs

--harnessing of decentralised costs

The resulting action plans will have quick gains on short term actions, and also an impact on long term actions.

Corporate Governance

The Board of Directors has nominated Christophe Aulnette as CEO on the 23 March 2005, and has co-opted him as administrator on the 15 April 2005. Yves de Chaisemartin has also been co-opted as administrator.

The Board of Directors has also begun to work on the change of legal status of the company, which will lead it propose the Annual General Meeting of the 29 June 2005, a Management Board and a Supervisory Board. This initiative was viewed favourably by the Works Council on April 8th 2005.

Following dates:

--Publication of turnover for the first quarter 2005, on 9 May 2005 (before markets open)

--Shareholders' Annual General Meeting, on 29 June 2005