Based on the estimated proportion of revenues and costs expressed in U.S. dollars or in currencies correlated with the dollar, a 5-cent fall in the euro against the dollar (at an exchange rate of $1.20/€1) would mechanically increase 2015 revenues by approximately €3.6 million and income from operations by €2 million. Conversely, a 5-cent appreciation of the euro against the dollar (i.e. $1.30/€1) would mechanically reduce revenues and income from operations by the same amounts. The company has not hedged its currency exposure for 2015. At the date of this report, the dollar has further strengthened against the euro, with a parity of $1.12/€1; if the exchange rate were to remain close to this level, it would have a beneﬁcial impact on the company’s revenues and income. Key Financial Metrics Key ﬁnancial metrics of the 2015 plan are (like-for-like variations): – keeping gross proﬁt margins on the different product lines at the same levels as in the second half of 2014, the product mix reﬂecting the growing importance of new software licenses, training and consulting; – an increase of around 4% to 6% in recurring revenues. Recurring contracts are expected to increase by around 4% to 5%, and sales of spare parts and consumables by 4% to 7%, given the increase in the installed base and the activity and output at customers; – ﬁxed overhead costs of around €133 million, up €9.6 million (+8%) relative to 2014. Of this €133 million, €20 million, or 15%, is attributable to the company’s transformation plan; – a security ratio (i.e. the percentage of annual ﬁxed overhead costs covered by gross proﬁt on recurring revenues) of 78%.
As in previous years, the main uncertainty concerns the level of revenues from new systems sales. Visibility remains limited, calling for continuing caution. The company’s objective is to reach total revenues of approximately €240 million (+14% relative to 2014; +11% like-for-like) for the ﬁscal year, income from operations before non-recurring items of around €29 million (+47%; +30% like-for-like), an operating margin before non-recurring items of 12% (a 1.6 percentage points increase like-for-like), and net income of around €20 million (+39%). For every €1 million increment (or decline) in revenues from new systems sales, income from operations should increase (or decrease) by approximately €0.45 million. Free cash ﬂow should continue to exceed net income, assuming the use or the receipt of the French research tax credit and competitiveness and employment tax credit recognized in the year. In 2015, free cash ﬂow will beneﬁt from the refund of the 2011 research tax credit (€4.7 million). Company Conﬁdent in its Medium-Term Growth Prospects The transformation plan is scheduled for completion at the end of 2015. The headcount will be strengthened and resources will be reallocated to the most strategically important activities and to those geographical markets and market sectors offering the greatest growth potential. Bolstered by the strength of its business model and the relevance of its strategic roadmap, the company maintains the ﬁnancial goals it has set for 2016 unchanged and remains conﬁdent in its growth prospects for the medium term. The Board of Directors March 3, 2015