listed mid-size businesses – demonstrate growth and success

© 2007 NYSE Euronext. All Rights Reserved.

Listed SMEs: dynamic, high- performance companies

July, 2008

Martine CharbonnierHead of European Listing - NYSE Euronext

Study undertaken with the corroboration of

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Commentaires de présentation

2Listed SMEs: dynamic, high-performance companies

Methodology of the Study*• Scope of the study:

– All companies listed on Alternext as of 31 December 2007

– Most metrics analysed in this study are as of end 2007

– Statistics based on representative samples (after removal of extreme samples of some indicators)

– Comparison with French Private Equity (source: AFIC, the French association of Private Equity investors)

– Comparison with French non-financial companies (source: INSEE, the French National Institute for Statistics and Economic Studies)

* Methodology detailed in appendix (slides 25 and 26)

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Alternext: The Market Dedicated to Dynamic, High-Performance Listed SMEsCompanies listed on Alternext:

are innovative: 51% were granted the label/financed by OSEO-ANVAR*

are creating jobs: employees + 80% between 2004 and 2007 (and for the French companies, twenty times the average national rate)

are pursuing external growth: 58% made acquisitions

are expanding abroad: 49% acquired/set up a subsidiary outside their domestic market after their listing on Alternext

are creating value: EBIT margin + 28% between 2004 and 2007 (and for the French companies ten times the average national rate)

are increasingly using the Stock Market to finance their growth: €2Bn of net proceeds raised on Alternext since launch, of which 53% at IPO and 47% through follow-ons

* French Agency for the Innovation

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Alternext: Overview as of 30 June 2008• Founded in May 2005, first listing: MeilleurTaux.com (May 17th, 2005)

• 125 listed companies in Paris, Brussels and Amsterdam, of which 9 are international*, for a total Market Cap of €5.3Bn

• €2Bn of capital raised:– €1,035m at IPO– €906M through follow-ons

• A wide range of sectors (all ICB sectors represented)

• Three international* companies joined Alternext since 1st Jan. 2008:– Two Chinese (China Corn Oil, Huacheng Real Estate) and – One British (Proventec)

* Not French, Belgian or Dutch

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Parmi les secteurs les plus représentés: #1) 11 sociétés: agence de médias #2) 9 sociétés chacun: - Internet, - Équipements électroniques, - Services informatiques, - Services d'appui professionnels #3) 8 sociétés: logiciels #4) 6 sociétés: biotechnologies etc


A Certain Maturity

Age of Companies At IPO As of June 2008

• Average 12.8 14.5

• Median 9 11

• Maximum 76 78 (Lamarthe)

• Minimum 1 4 (Au Plata, Goadv, CBO Territoria)

• 50% of companies listed on Alternext were founded before 1997, representing a median age of 11 years old:

1/3 founded before 1990

1/3 founded in the 1990s

1/3 founded after 2000

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Highly Innovative Companies

ANVAR Label ANVAR Financing ANVAR Label/Financing

Number of companies 50 11 61

Percentage of total number of companies 42% 9% 51%

* French Venture Capital Funds specialized in innovative companies

• 42% of Alternext companies were qualified as “innovative companies” (ANVAR label granted by OSEO, the French Agency for Innovation)

• 51% of Alternext companies were either granted the ANVAR label or financed by OSEO-ANVAR

• Half the European companies listed on Alternext are eligible for FCPI*

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Le label/financement ANVAR concerne tous les secteurs industriels bien évidemment prioritairement les sociétés du secteur technologique (79% des sociétés de ce secteur ont reçu soit le label soit un financement de l’ANVAR), de la santé (86%, biotech et medtech) mais également de l’industrie (43%), des biens de consommation (43% également) et des services aux consommateurs (42%).


Companies that Create Jobs (1/2)

Headcount* (number) 2004 2005 2006 2007 2004-2007**

• Average 103 122 138 188 + 80%

• Median 49 64 76 103 + 95%

• Maximum 1,510 1,419 1,433 1,721 -

• Minimum 1 2 5 3 -

• All companies from Alternext, whatever their nationality, had a headcount increase* of 80% in the last 3 years (2004-2007)

* Including job creation in foreign subsidiaries

** Based on a stable and representative sample

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Exemples: Rentabiliweb (paiements sécurisés sur Internet): 5 personnes en 2004 => 90 à fin 2007 Adverline (régie publicitaire): 6 personnes en 2004 => 66 à fin 2007 Mastrad (conception d’accessoires culinaires): 7 personnes en 2004 => 40 à fin 2007 Celeos (promotion immobilière): 47 personnes en 2004 => 377 à fin 2007


• Among French companies only, the average annual headcount increase* between 2004 and 2007 was 23.1%

• Over the same period, the headcount of non-financial companies based in France has increased on average by 1.2% per annum (source: INSEE)

Companies that Create Jobs (2/2)

* Including headcount of foreign subsidiaries

** Average annual variation between 2004 and 2006

(2007 not available)

+ 1.2%+ 5.4%

+ 23.1%

Non-financial companies based in France (INSEE)

French companies under Private Equity (AFIC)**

French companieslisted on Alternext

Average annual headcount increase (2004-2007)

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Pour les seules sociétés françaises d’Alternext, la croissance des effectifs est de 86% sur 3 ans (2004-2007) soit une progression de 23,1% chaque année


An Expansion Based on External Growth

Acquisitions (number) As of June 2008

• Total 149

of which intrnationally based companies 36

• Average 2.2

• Median 2.0

• Maximum 9 (O2i)

Companies that performed ≥ 1 acquisition(s) 69 (58%*)

Examples:

Jan. 2008, Heurtey Petrochem bought Petro-Chem Development (US), 71% cash finance and 29% through a reserve capital increase.

Feb. 2008, Harvest bought 70% of O2S (software); fully financed in cash.

Jan. 2008, Yin Partners bought E-magineurs, 65% equity finance and 35% cash finance.

• 58% of companies listed on Alternext made acquisitions since their initial listing (69 companies)

• On average, Alternext listed companies that expanded externally acquired 2.2 companies

* Percentage of the total number of Alternext listed companies as of 31 December 2007

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A noter que les sociétés qui réalisent des acquisitions utilisent autant leur trésorerie (incluant les fonds levés à l’intro ou ceux levés par la suite sur le marché) que leurs propres actions. Les statistiques récoltées n’ont pas été suffisamment nombreuses pour rendre l’échantillon d’observation représentatif: cela ne nous a pas permis de donner une conclusion formelle sur la devise d’acquisition (cash ou titres). Les 4 sociétés d’Alternext ayant réalisé le plus d’acquisitions (O2i, Yin Partners, Adverline, D.L.S.I.) ont (a priori) financé ces acquisitions principalement en titres ou grâce aux capitaux propres levés à l’introduction (les montants de levées secondaires sont assez faibles).


International-Oriented Companies 1/4 of Alternext companies acquired at least one international company

1/3 of Alternext companies set up at least one affiliate abroad

14 companies bought: ≥

1 foreign company

29 companies set up: ≥

1 affiliate abroad

15 companies at the same time: - bought ≥

1 foreign company and - set up ≥

1 affiliate abroad

58 companies expanded outside their domestic market* after their listing on Alternext (49% of the total)* Either by external growth and/or by setting up of an affiliate

12%

24%

13%

Percentage of Alternext companiesexpanding internationally after their listing

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Après leur intro en bourse: - 29 sociétés d’Alternext ont réalisé une ou plusieurs acquisitions à l’étranger (24% du total = > environ un quart) 44 sociétés d’Alternext ont ouvert un ou plusieurs établissements à l’étranger (37% du total = > plus du tiers) En supprimant les recoupements on a trouvé 58 sociétés d’Alternext qui se sont développées en dehors de leur marché domestique après leur introduction (49% du total => la moitié)


Companies that Demonstrate Profitable Growth

Alternext companies create value at all levels:

• Revenues (net sales),

• EBIT result*,

• Net Profit.

* EBIT (Earning Before Interests and Taxes)

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Revenues Show Strong Growth (1/2)

Annual Revenues (€M) 2004 2005 2006 2007 2004-2007*

• Average 15.7 20.8 27.6 35.7 + 106%

• Median 7.0 10 12.9 17.6 + 153%

• Maximum 135 173 244 363 (Poweo) -

Total 1,745 2,449 3,253 4,141 + 106%

• In 2007 Alternext companies recorded total revenues of €4.1Bn

• Average revenues of Alternext companies have increased by 106% over 3 years (2004-2007)

• In 2006, half of all Alternext companies generated more than 20% of their revenues abroad

* Based on a stable and representative sample

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Plus fortes progressions: #1: CBO Territoria (promotion immobilière): de 400K€ de CA en 2004 à 24m€ en 2007 #2: Adthink media (électricité): de 200K€ de CA en 2004 à 12m€ en 2007 #3: DL Software (logiciels): de 700K€ de CA en 2004 à 25,5m€ en 2007 #5: Rentabiliweb (Internet): de 2,5m€ de CA en 2004 à 50m€ en 2007


Revenues Show Strong Growth (2/2)• Among French companies only, the average annual revenue increase* between 2004 and 2007 was 26.3%

• Over the same period, the total annual revenue of non-financial companies based in France has increased on average by 5.7% per annum (source: INSEE)

* Including revenues generated by foreign subsidiaries

** Excluding retail stores and real estate (estimates based on SUSE and other revenues indices issued by INSEE)

*** Average annual variation between 2004 and 2006 (2007 not available)

+ 5.7%+ 9.0%

+ 26.3%

Average annual revenuegrowth (2004-2007)


French companies under Private Equity (AFIC)***


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Pour les seules sociétés françaises d’Alternext, la croissance du chiffre d’affaires entre 2004 et 2007 est de 102% soit une progression de 26,3% chaque année


• EBIT* multiplied by 3.2 over the last 3 years (2004-2007)

• Median EBIT margin increased by 28% over the last 3 years (2004-2007)

Better cost management without inhibiting growth (headcount, investments, acquisitions, expansion abroad continued to grow)

EBIT* (€M) 2004 2005 2006 2007 2004-2007**

• Average 0.8 1.3 2.0 2.8 + 223%

• Median 0.5 0.9 1.5 2.1 + 368%

Total 80 146 232 315 + 223%

EBIT margin (in % of revenue) 2004 2005 2006 2007 2004-2007**

• Average 11.3% 13.4% 14.2% 14.1% + 10%

• Median 7.2% 8.4% 9.0% 9.4% + 28%

* Earning Before Interests and Taxes** Based on a stable and representative sample

Strong Growth in Operating Performance (1/2)

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Parmi les plus fortes progressions de l’EBIT: Maesa (ex-Parfum d’Image): tout juste à l’équilibre en 2004 (+2000€) => +4,5m€ en 2007 Heurtey Petrochem (: de 172K€ en 2004 à +4,7m€ en 2007


• Among French companies only, the average EBIT growth* between 2004 and 2007 was 48.3%.

• Over the same period, the total Earning net from amortizations** of non- financial companies based in France has increased on average by 4.4% per annum (source: INSEE)

* Including EBIT generated by foreign subsidiaries

** Proxy for EBIT

+ 4.4%

+ 48.3%

Average annual variation of EBIT (2004-2007)

Strong Growth in Operating Performance (2/2)



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Pour les seules sociétés françaises d’Alternext, la croissance de l’EBIT entre 2004 et 2007 est de 226% soit une progression de 48,3% chaque année


• Net profit multiplied by 3.8 over the last 3 years (2004-07)

• Median net margin increased by 27% over the last 3 years (2004-2007)

• Based on analysts’ predictions profitability from Alternext companies should continue to increase in 2008 (estimated P/E ratio of 15x*)

Net Profit (€M) 2004 2005 2006 2007 2004-07**

• Average 0.3 0.7 1.1 2.0 + 279%

• Median 0.4 0.6 0.9 1.5 + 280%

Total 36 82 133 225 + 279%

* Based on financial analysts’ recommendations as of 16 June 2008 (source: Bloomberg)** Based on a stable and representative sample

Profitability: Increased Growth Rates (1/2)

Net Margin (in % of revenue) 2004 2005 2006 2007 2004-2007**

• Average 8.0% 9.2% 10.0% 11.2% + 10%

• Median 4.4% 5.2% 5.7% 6.0% + 27%

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Parmi les plus fortes progressions du Résultat Net entre 2004 et 2007: Celeos (promotion immobilière): +1,3m€ en 2004 => +12,5m€ en 2007 Initiatives et Développements (agence médias): tout juste à l’équilibre en 2004 (+3000€) => +5,3m€ en 2007


• Among French companies only, the average Net Profit increase* between 2004 and 2007 was 56%.

• Over the same period net profit from amortizations of non-financial companies in France** has decreased on average by 4% per annum (source: INSEE’s national accounts)

* Including Net Profit generated by foreign subsidiaries

** Proxy for Net Profit

- 4.0%

+56%

Average annual variationof Net Profit (2004-2007)

Profitability: Increased Growth Rates (2/2)



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Pour les seules sociétés françaises d’Alternext, la croissance du Résultat Net entre 2004 et 2007 est de 279% soit une progression de 56% chaque année Dans le même temps le « résultat net » des sociétés françaises en France a baissé de 4% chaque année. Cela est principalement lié au fait que les sociétés françaises ont connu sur la période une érosion substantielle des marges dans l'industrie sur le territoire national et donc généré en France (comptes sociaux) des profits tendanciellement en baisse. La plus grosse part de la croissance des profits qui a pu être enregistrée sur la période l’aura été à l’international, ce qui ne se retrouve pas dans les chiffres de la comptabilité nationale. A noter que Monsieur Denis Ferrand, directeur de la conjoncture chez Coe-Rexecode, avait en juin 2006 réalisé une étude similaire qui démontrait la surperformance des sociétés du CAC 40 en terme de progression de la profitabilité par rapport aux sociétés françaises non financières (source: http://elections.lesechos.fr/elections-presidentielles-2007/theme/entreprises/300133819.htm).


Getting Listed on Alternext: a Major Source of Financing

Capital raised at IPO (€M) 2005 2006 2007 Total

• Average* 6.5 8.8 11.2 9.4

• Median* 4.8 7.7 8.8 7.4

• Maximum 12.9 23.3 34 34 (Vergnet)

Total 78 467 426 971

* Excluding Free Market transfers and other direct listings

• €1Bn has been raised by new listings on Alternext

• 100% of companies newly listed on Alternext raised capital*

• 75% of the amounts raised at IPO were gained through public offers; the remainder by Private Placement

• 50% of companies that raised capital at IPO placed €10M or more

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Tout comme les levées secondaires (qu’on verra dans la slide suivante) les capitaux levés à l’introduction sont principalement utilisés dans le financement de la croissance interne et externe de la société.


A Dynamic Secondary Market to Finance Growth

Follow-ons (€M) 2005 2006 2007 2008 YTD** Total

• Average - 5.0 7.2 4.4 6.6

• Median - 0.8 1.3 1.5 1.3

Total 50 85 627 144 906

* Secondary offerings (follow-ons) include: Capital increase, warrants/options exercise, convertible bonds issues, etc.

** As of 16 June 2008

• Alternext provides listed companies with exceptional means to finance their growth on a regular basis: over the last three years half the companies listed on Alternext raised capital through follow-ons* for a total amount of €906M

• 50% of Alternext companies that performed secondary offerings (follow-ons) raised at least €4M

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Trois des 5 sociétés d’Alternext à avoir levé le plus de fonds (Poweo avec 248m€, Safwood avec 55m€ et Exonhit Therapeutics avec 41m€) ont réalisé peu d’acquisition (1 pour Poweo) ce qui laisse à penser que le fonds levés ont - pour ces cas particuliers - plus été utilisés à financer la croissance interne de l’activité que la croissance externe. Parmi les plus grosses levées secondaires: Poweo pour un total de 248m€ levé (principalement) lors de plusieurs opérations (notamment par une augmentation de capital réservée de 26m€ en mai 2006; 150m€ en juillet 2007) Initiatives et développements avec 77,6m€ levés (dont 45m€ levés lors d’une émission d’obligations convertibles en juin 2007)


Conclusion (1/3)Statement:

• A lack of correlation between the stock performance of small & midcaps (investors disaffection in difficult times) and their economic andfinancial performances

Challenges:

• Broaden the investor base while creating new interest for the mid caps segment

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Conclusion (2/3)Action plan:

• Reinforcement of the NYSE Alternext brand from an international standpoint : brand to be used for the listed SMEs segment in the US (formerly listed on AMEX)

• Active promotion of Alternext in France and abroad

Interim results:

• 3 international companies have been listed on Alternext since 1st

January 2008 including the 2 first Chinese companies (China Corn Oil,Huacheng Real Estate) and 1 British company (Proventec)

• Other candidates from diverse areas: China, Spain, Canada, etc.

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Conclusion (3/3)Forward thinking:

1. To enhance the attractiveness of investing • The tax aspect: comparative analysis of AIM / Alternext reveals a

much more attractive tax environment on AIM. e.g. a spread that can go from 1 to 20 on authorized amount of tax deductions for an initial investment on companies listed on AIM

2. To increase the visibility of issuers

• Launch of a limited Alternext index (30 / 40 companies)• Continue to promote the companies to investors

(in London among others) through dedicated events (sector days)

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Questions &

Answers

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1. Scope of the study:

• All companies listed on Alternext as of 31 December 2007 (119 domestic and non-domestic companies)

• Study of main metrics (headcount, revenues, etc.) performed on very representative statistical samples (80%-97% of total).

• Comparison with French Private Equity in France (AFIC) and non- financial companies based in France (INSEE) performed after removal of extreme samples of the following Alternext data:

- Study based only on French companies

- Extreme values (minimum, maximum) from each sample excluded

- Statistics (total, average, median) were only calculated based on stable and representative samples

Detailed Methodology of the Study (1/2)

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Detailed Methodology of the Study (2/2)2. All metrics in this study are stated as of end 2007, excluding:

• ANVAR Label (as of end March 2008)

• Follow-ons, external growth, foreign subsidiaries and analyst coverage (as of 16 June 2008)

3. Scope of Coe-Rexecode involvement:

• Validation of the reliability of samples

• Corroboration of statistical methodology

• Relevance of comparative data (AFIC, INSEE)

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Companies Listed on Alternext as of 31/12/07# Company # Company # Company # Company

1 Cbo Territoria 30 Laroche 60 AB Fenetres Groupe 90 Richel Serres de France 2 Poweo 31 Mastrad 61 Hitechpros 91 Genoway3 Adomos 32 Adverline 62 The Member Company TMC nv 92 Yin Partners4 Harvest 33 Celeos 63 Trilogiq 93 Demos5 MG International 34 Cedip Infrared Systems 64 Groupe Promeo 94 Vergnet6 Satimo 35 Sovep 65 Octo Technology 95 Homair7 Maximiles 36 Evadix sa 66 RoyalReesink 96 Thenergo8 Sidetrade 37 Normaction 67 Turenne Investissement sca 97 Ecodis9 Freelance.com 38 Aquila 68 Rentabiliweb Group 98 Inventoriste10 Sporever 39 Neotion 69 D.L.S.I. 99 Fountaine Pajot11 Techniline 40 Medicrea International 70 eFront 100 Auplata12 Staff and Line 41 Heurtey Petrochem 71 Genfit 101 Reims Aviation Industries13 Assya Capital 42 Weborama 72 1855 102 Stradim14 Exonhit Therapeutics 43 LeGuide.com 73 Ideom (ex-Avenir Numeric's) 103 Logic Instrument15 Serma Technologies 44 OBER 74 Dietswell Engineering 104 Arkoon Network Security16 O2I 45 Netbooster 75 VDI Group 105 Groupimo17 The Marketingroup 46 Emakina Group sa 76 Groupe Eurilogic 106 Acheter-Louer.fr18 Environnement sa 47 Voyageurs du Monde 77 H2O Innovation (2000) inc 107 Orolia19 Clasquin 48 De Rouck Geomatics sa 78 Auto Escape 108 Goadv20 1000mercis 49 MGI Digital Graphic Technology 79 Entreparticuliers.com 109 I2S21 Emailvision 50 Piscines Groupe ga 80 Cellectis 110 Streamwide22 Maesa (ex-Parfum d'image) 51 Initiatives et Développements 81 Antevenio 111 Fashion B Air 23 Safwood 52 CRM Company 82 Notrefamille.com 112 Mindscape24 Evolis 53 Proservia 83 Air Energy SA 113 Monceau Fleurs25 Millet Innovation 54 Xiring 84 Brossard 114 Conporec26 Prodware 55 International Technologie Sélection 85 Eurogerm 115 Hybrigenics27 Come and Stay 56 Budget Telecom 86 Traqueur 116 Astellia28 Lamarthe 57 Assima 87 Dolphin Integration 117 Ventos29 Press Index 58 ECT Industries 88 Adthink Media 118 Cortix

59 Porthus NV 89 DL Software 119 Vision IT

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List of Companies Listed on Alternext in H1 2008# IPO

Date

Company Country Place ICB sector Market Capat IPO

Market Cap as of 30/06/08

Capital raisedat IPO

1 02/01/08 Co.Br.Ha. BEL Brussels 3533 - Brewers € 118 903 500 € 110 580 760 ---2 25/03/08 China Corn Oil CHI Paris 3577 - Food Products € 84 996 615 € 87 868 412 € 5 000 0003 08/04/08 Huacheng Real Estate CHI Paris 8633 - Real Estate Holding & Development € 165 000 000 € 165 000 000 € 5 000 0004 22/05/08 Proventec UK Paris 2791 - Business support services € 24 948 998 € 33 954 978 ---5 28/05/08 Referencement.com FRA Paris 9535 - Internet € 22 527 692 € 19 010 814 € 2 775 7556 09/06/08 Easydentic FRA Paris 2737 - Electronic equipments € 230 998 655 € 180 009 825 ---7 10/06/08 Ipsogen FRA Paris 4573 - Biotechnology € 31 877 165 € 31 965 712 € 11 769 970

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