Prsentation PowerPoint

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LINEDATA SERVICES GROUP Half-year results
2003 September 2003
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Contents

• Key facts of the Linedata Services Group
• Half-year results 2003 well controlled margins
• Asset Management confirmed position as a world
  leader
• Leasing and Credit Finance maintenance of strong
  growth in Europe
• Employee Savings creation of a major player in
  individual and company-sponsored savings schemes
• Conclusion

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A worldwide presence in the main financial
markets A major player in financial IT services
Software Developer Systems Integrator Processing
Service Provider

• Asset Management US / France / Luxemburg / UK
• Employee savings France
• Leasing and Credit Finance Germany / France /
  Tunisia

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An eventful and positive first half

• Asset Management Groups positions strengthened
• External growth Thomson Financials PIMS assets
• An increasingly comprehensive and international
  range of products
• Leasing Credit Finance Increasing return of
  previous investments
• Employee Savings Preparation of ESDS acquisition
  to create a key business line
• New growth drivers with strong potential
• Unfavourable external factors Exchange rate,
  less favourable economic environment

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An eventful and positive first half

• Company evolves to optimise management of future
  growth
• Strengthened management
• Pascal Xatart appointed as Managing Director of
  Asset Management
• Gilles Labossière becomes the new CFO
• ASP data centres transferred to Atos Origin
• Flexibility and 24-hour service
• International support
• Offices reorganisation
• UK ICON / IASII and LongView teams at the same
  site in London

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Contents

• Key facts of the Linedata Services Group
• Half-year results 2003 well controlled margins
• Asset Management confirmed position as a world
  leader
• Leasing and Credit Finance maintenance of strong
  growth in Europe
• Employee Savings creation of a major player in
  individual and company-sponsored savings schemes
• Conclusion

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Half-year results 2003 consolidation of growth
In millions of euros
Half-year sales
47.6
47.5
38.5
23.7
In M
2001
2000
2003
2002

• Overall growth of 3.3 excluding exchange rate
  effect (- 1.6M due to exchange rate)
• Negative organic growth excluding exchange rate
  effect
• 35 of revenues out of international business

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Half-year revenues 2003
Breakdown by business unit
Leasing Credit Finance 25.6
Asset Management 53.6
Employee Savings 20.8

• Asset Management Sales at 25.5M, down 5.9
• Leasing Credit Finance Sales at 12.2M, up
  18.6
• Employee Savings Sales at 9.9M, down 2.8

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Asset Management First half of 2003
consolidating our performance

• 3M behind forecasts
• Two simultaneous events
• Longer decision-making times postponement
• 5.0M in revenues for new clients 25 of those
  booked for H1 03
• Less growth in existing client base (ASP
  contracts)
• Development according to geographical locations
• US
• Market plan in USD on track with growth plan in
  USD
• 4 new clients signed (Sun Trust, Bank One,
  Liquidnet and UBS Zurich)
• UK
• Market plan in GBP on tracks with growth plan in
  GBP
• 2 new Icon clients (Bealfour Beatty PF, West
  Yorkshire PF),
• Continental Europe
• Recurring business, but less growth,
• 2 major accounts signed (HSBC/Vernet Valor and
  Groupama)

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Leasing Credit Finance targets exceeded

• Ekip deployment picks up in Europe
• A key step towards consumer credit
• A high-potential market
• A major agreement with Lukas Bank
• one of the leading Polish banks
• over 2 million contracts eventually
• Go-live at several clients
• Credit Plus AG, Deutsche Leasing, PSA Germany

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Employee Savings a consolidated first half of
2003

• Number of employee accounts under management
  continues to grow
• 7.4 million accounts on June 30, 2003
• 7 growth over December 31, 2002
• New services deferred
• Bespoke developments and additional modules
• Looking to reduce expenses following COB/CMF
  directives to separate management and accounting
• Awaiting Fillon law measures

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Half-year results 2003 margins consolidated
In millions of euros
H1 2002
H1 2003
Var
Sales
47.49
47.57
0.17
7.39
7.42
0.41
Operating income
Operating margin
15.56
15.60
Net income before goodwill
4.41
4.61
4.53
Net margin before goodwill
9.3
9.7
Group net income after goodwill
2.74
2.78
1.46

• Strong profitability maintained despite decrease
  in growth, due to
• Rigorous management of operating expenses and
  economies of scale
• ASP model
• RD 8 of sales (compared with 7 in H1 02)

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A solid financial structure
ASSETS
LIABILITIES
In millions of euros
On June 30, 2003
Shareholders equity provisions
52.6
85.3
Fixed assets
41.3
Financial Debt
Cash
13.0
WCR
4.6

• Gearing ratio reduced to 55 (compared with 64
  in H1 2002)
• 5.2M Cash Flow (compared with 3.1M in H1 02)
  11 of revenues
• 4.3M Free Cash Flow (before dividends) (compared
  with 2.1M in H1 02) 9 of revenues

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Contents

• Key facts of the Linedata Services Group
• Half-year results 2003 well controlled margins
• Asset Management confirmed position as a world
  leader
• Leasing and Credit Finance maintenance of strong
  growth in Europe
• Employee Savings creation of a major player in
  individual and company-sponsored savings schemes
• Conclusion

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Asset Management current situation
Back Office
1600 bn AUM on Linedata Servicessystems
Euroland Assets Under Management 10,000 bn

• More than 15 of European assets daily on
  Linedata Services systems
• Linedata Services serves 180 clients in 15
  countries
• Via two regional solutions Icon (UK,
  Scandinavia and Middle East) and Chorus
  (continental Europe)

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Asset Management current situation
Middle Front Office
Linedata Services 3,000 users
World 20,000 users

• Euroland North America a market of over 20,000
  users
• Linedata Services 3,000 users on a daily basis
• Linedata Services serves 85 clients on 120
  locations in 15 countries
• Via two global products LongView Trading
  System (Front) and Spice (Middle)

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Asset Managementan organisation on the offensive

• After 5 acquisitions in 5 years, Asset Management
  has reorganized
• 1 head office and 1 sales/development department
• 4 operational departments per geographical area
• North America (80 people)
• UK, Scandinavia and the Middle East (120 people)
• Benelux, Switzerland and Germany (30 people)
• France and South Europe (80 people)
• 2 product development centres
• Boston Middle and Front Office
• Paris/London Back Office
• 1 operational centre (ASP)
• Atos Origin (operational centers in France and
  UK)

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Asset Management focusing on growth

• Strategy based on 3 factors
• Coninually improving product range
• Financial Data ? Back Office ? Middle Office ?
  Front Office ? ECN/ATS
• Combined with a unique range of services
• Sale of software ? FM (Facilities Managament) ?
  ASP (Application Service Provider) ? BPO
  (Business Process Outsourcing)
• Accessible from all client sites
• Continental Europe ? UK and Scandinavia ? North
  America ? Middle East ? Asia

Services
Locations
Products

• Flexible business model
• ASP or Licences
• Single product or Comprehensive solution

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Areas of significant growth

• Cross-Selling
• Linedata Services works for over 200 prestigious
  clients
• Seeking to combine their solutions
• In most of their locations
• A ROI-oriented offering
• Linedata Services provides a unique and
  constantly developing range of products
• Associated with Added Value and cost-saving
  services
• ROI-oriented
• An economic climate encouraging unification
• The current economic situation discourages global
  players
• And encourages search for local partners
• With a player seeking unification Linedata
  Services

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Contents

• Key facts of the Linedata Services Group
• Half-year results 2003 well controlled margins
• Asset Management confirmed position as a world
  leader
• Leasing and Credit Finance maintenance of strong
  growth in Europe
• Employee Savings creation of a major player in
  individual and company-sponsored savings schemes
• Conclusion

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Leasing Credit Finance a high-potential market
Analysis of credit market in Europe in terms of
outstanding credit
Car Finance 34
Leasing 36
Consumer credit 28

• 500 million euros in outstanding credit in Europe
  (US)
• 75 million loans, including 7 managed by
  Linedata Services
• 75 of loans in 4 countries Germany (23), UK
  (22), France (17) and Italy (13)

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Leasing Credit Finance fully exploit our
potential in Europe
Supporting major accounts internationally

• Strengthen our presence in Europe
• Use our capacity to handle large volumes (PSA,
  LUKAS)
• Extend our contracts to a multi-national level
• Increase strategic partnerships
• Pre-sale, integration (Accenture)
• Additional functional services (Bynx)
• Continue development of ASP model with
  international clients
• Prestigious reference in 2002 Toyota Financial
  Services
• Leading international reference in 2003
  FranFinance Suisse
• (Société Générale Group)

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Contents

• Key facts of the Linedata Services Group
• Half-year results 2003 well controlled margins
• Asset Management confirmed position as a world
  leader
• Leasing and Credit Finance maintenance of strong
  growth in Europe
• Employee Savings creation of a major player in
  individual and company-sponsored savings schemes
• Conclusion

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The French individual and company-sponsored
savings schemes market current situation
Employee Savings great potential for small and
medium size companies

• 10 million employees, including 7.4 million
  managed by Linedata Services
• Number of policy holders increasing by 10 each
  year
• The gradual effect of the Fabius Act on SMEs
• Potentially 6 million additional accounts
• Few laws in Europe compare

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The French individual and company-sponsored
savings schemes market current situation
Insurance-based retirement savings plans

• Individual savings
• Essentially Life Insurance with 18 million
  policy-holders, including 1/3 of retirement
  policies
• PEP/PEA
• Retirement savings for self-employed workers
  (Madelin, ex-Coreva) and civil servants (Prefon)
• Company-sponsored savings
• Additional Retirement Savings for employees
• Articles 39, 82, 83, IFC, etC.
• 1 million subscribers
• Similar plans in the main European countries

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The French individual and company-sponsored
savings schemes market significant developments
A major event the Fillon laws 2 new retirement
savings plans created

• PEIR
• An essentially individual retirement savings plan
• Open to all French residents
• Annuity payment
• Will gradually replace individual measures
  already in place (particularly life insurance)
• PPESVR
• A retirement version of the PPESV
• Open to all employees
• Annuity payment or lump sum
• Group plan subject to company approval

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A larger, unified picture
The boundaries are no longer clear
Employee Savings
Retirement Savings
Life Insurance
PEE, PEI (profit sharing)
Art. 39, 82, 83,IFC, Madelin
Insurance for life, death, pensionsand PEP
PPESVR
PEIR
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Acquisition of main ESDS assets
A French company specialising in individual and
group savings

• Founded in 1990
• Founders and current directors Jack Hazout,
  Olivier Réglade and Jean-Marie Valicon
• Revenues in 2002 10.6M - Revenues forecast for
  2003 12M
• 30 of revenues recurrent
• Model used geared toward an ASP model (monthly
  billing hosting)
• 50 employees
• Locations Saint-Ouen Gentilly
• 1 subsidiary specialising in BPO (22 of Vie
  Services held with ACMN VIE)

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Acquisition of main ESDS assets
 A comprehensive offering in Life Insurance and
Retirement Savings

• Master A software
• Covers the entire range of personal insurance
  products
• Individual and group products
• Life, funded pension schemes, retirement and
  pensions (excluding health)
• Multi-currency and multi-lingual
• Multi-tiers architecture developed under ORACLE,
  Web portal, Workflow, GED
• 3 types of additional offers
• Software on site
• ASP (LDCOM hosting)
• Delegated management (via Vie Services)

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Acquisition of main ESDS assets
Prestigious clients in the European insurance
sector

• Insurance companies
• AGF-Allianz, AIG, Erisa, Fortis, Scandia, Zurich
  Assurances
• Mutual insurance companies
• ACMN Vie, MAAF, MAIF, Mutuelles de France
• Pension funds and additional retirement plans
• AG2R, Ionis, Mederic, Malakoff, Pasteur
• Approximately 1 million contracts managed

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Life insurance and supplementary retirementA
booming IT market
Life insurance companies external expenses
500M in 2002

• Software still only a small part
• Approximately 15 of external expenses
• A trend towards IT outsourcing
• Often simultaneously with internal systems
• Already available with delegated management
• Trend boosted by
• Need to rapidly adapt to market trends
• Increasing importance of ROI on IT budgets

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ESDS a solid position in a booming market
Revenues dAffaires Progiciels en Assurances Vie
et Retraite Complémentaire ()
Revenues for Software in Life Insurance
Supplementary Retirement Schemes ()
Excluding Health
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The European market for life insurance and
pension funds great potential for LDS

• Life Insurance
• World US Europe (ahead of Japan)
• Europe UK leading player ahead of France,
  Germany and Italy
• Supplementary retirement and pension funds
  (Europe)
• Mature countries UK, Netherlands, Switzerland
  and Sweden
• Recent laws Germany, Italy, Spain and France
• A European industry for IT companies
• UK Marlborough Stirling, Sherwood, Profund, and
  Comino
• Germany FJA, COR AG and VES
• Switzerland Hewitt and Trianon
• Potential acquisition targets for LDS

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Individual and group savings Commercial
position forecast for 2004
Development in Europe
Employee Savings Employee StockOwnership
Life Insurance
LDS offering
Retirement Savings
LDS site
France
Europe
Leader

2004/2005 launch
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Contents

• Key facts of the Linedata Services Group
• Half-year results 2003 well controlled margins
• Asset Management confirmed position as a world
  leader
• Leasing and Credit Finance maintenance of strong
  growth in Europe
• Employee Savings creation of a major player in
  individual and company-sponsored savings schemes
• Conclusion

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Short and medium-term objectives

• Maintaining 2003 financial objectives
• 10 growth at a constant exchange rate (excluding
  ESDS integration)
• An operational margin at least equal to that of
  2002
• Strengthening our investment capacity
• 20M in revenues acquired in 2003 by improving
  results
• Toward a corporate structure producing 200M in
  revenues at the end of 2005
• Groups current corporate structure for end of
  2003/start of 2004 115M
• Potential for growth identified within the 3 main
  areas of activity

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Investment information

• Share price at 22/09/03 14.72
• Market cap. at 22/09/03 142.7M
• Number of shares 9,691,931
• SBF 250
• IT CAC 50
• Next Economy
• Ownership structure
• Public 55
• Managers employees 38
• APEF 7

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LINEDATA SERVICES GROUP Questions Answers