2001 Annual Results Analyst

1
2001 Annual ResultsAnalyst Investor
PresentationParis and Lyon, March 13 and 14,
2002

• Jean-Michel Bérard (Chief Executive Officer)
• Emmanuel Olivier (V.P. Finance and Investor
  Relation)

2
Agenda

• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strengths to succeed
• Conclusion

3

• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strenghts to succeed
• Conclusion

4
Esker at a glance

• Independent Software Vendor
• Founded in 1985
• Listed on the Nouveau Marché (Euronext Paris)
  since 1997
• Our mission
• Esker develops software products that immediately
  integrate new and existing technologies to
  streamline the exchange of vital business
  information.
• Our principles
• Focus on software development
• Diversify our product portfolio in complementary
  markets to feed company's growth

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Esker at a glance A world-wide leader

• 3rd largest world-wide fax server software vendor
• 6th largest world-wide Host Access solutions
  vendor

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Esker at a glance An international success story

• 16 years of sustained growth
• 89 of sales outside France

Sales by country in 2001
7
Esker at a glance An international success story
300 employees world-wide

• Subsidiaries in 7 countries
• - USA 3 offices Madison (WI), Stillwater
  (OK), Lake Forest (CA)
• - Europe France, UK, Germany, Italy, Spain
• - Asia Pacific Australia

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Esker at a glance Products

• Host Access provide access via a PC to core
  business information residing on most legacy
  systems and hosts

• IID (Intelligent Information Delivery)
  multi-channel electronic delivery of core
  business information from any enterprise
  application (ERP, CRM, Legacy, )

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Esker at a glance Strategic goal

• Become the world-wide leader in electronic
  delivery of business documents
• and to consolidate existing complimentary
  markets to accelerate our development
• Print management
• Forms Processing
• Archiving
• EDI-XML
• Fax servers

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• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strenghts to succeed
• Conclusion

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Eskers markets Host Access

• Size 1 billion a year
• Market drivers
• Compliance with evolving operating systems
  (Windows 2000, Windows XP)
• Migration to newer architectures (from PC-to6host
  to Web-to-Host)
• Market forecast
• Esker believes the Host Access market will
  decline by 5 to 10 a year by 2005

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Eskers markets - Host Access World-wide monthly
sales from 1/1/99 to 12/31/01
Stabilization
1/1/2000
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Eskers markets I.I.D Definition

• I.I.D. Intelligent Information Delivery

Distribution of electronic business documents
originating from an enterprise application
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Eskers markets I.I.DEnterprises yesterday
EnterpriseInformation System(ERP, SCM, HR,
...)
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Eskers markets I.I.DToday with IID
EnterpriseInformation System (ERP, SCM, HR,
...)
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Eskers markets I.I.DGuaranteed R.O.I for the
enterprise

• Productivity gains
• Eliminate numerous manual activities (printing,
  waiting, walking, stuffing, dialing, phoning,
  archiving, stamping,)
• Cost Reduction
• Eliminate primary materials such as paper, ink,
  printers, envelopes and office space
• Use less expensive media than Post or Fax to
  carry Business Documents
• Accelerate Business Cycles
• Reduce cash collection cycles
• Reduce level of inventory
• Reduce of problematic incoming orders
• Customer/Supplier relationship improvement
• Real-time communication via customer preferred
  channel
• Personalized information can be sent more often
  to the customer
• Senders can be sure that information reaches
  right destination
• Customers can deal more easily with digital
  information

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Eskers markets I.I.D Real life business case

• A 100 million company produces per month
• 17,000 invoices
• 5,000 delivery notes
• 150 collection notices
• 8 500 collection reminder letters
• 1 700 purchase orders
• Savings are
• Productivity gains 54 000
• Reduction in material consumption 11 500
• Total direct gains 65 500
• Improvement of interest expense 120 000
• Return on Investment lt 5 months

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Eskers markets I.I.D A market with high growth
potential

• 90 of paper-based documents originate as
  electronic documents (Aberdeen)
• The e-billing and e-presentment market will reach
  3.3 billion by 2005 (Killen Associates)
• 75 of American companies use no electronic media
  to handle their business transactions (National
  Association of Manufacturers Ernst Young)
• Per Gartner Group
• By 2004 DOM servers will become as pervasive as
  networked print servers (0.7 probability)
• DOM is approximately a US560 million market that
  is growing at 35 CAGR.

The IID market should reach 2 billion by 2005
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Eskers markets I.I.D Competitive analysis

• Accelio (Nasdaq ACLO), formerly Jetform
• Dazel Hewlett Packard
• Formscape
• Macro 4 (LSE)
• Streamserve
• IBM
• In red public companies

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• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strenghths to succeed
• Conclusion

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2001 financial statements Eskers financial
rationale for growth

• Eskers strategy is well balanced between its two
  product lines
• Host Access
• Mature product
• Low investments
• Capitalize on existing channels and gain market
  share
• High profitability
• IID
• New product with high growth potential
• Demands high investment in RD, sales and
  marketing
• Growth financed through optimization of existing
  commercial world-wide infrastructure

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2001 financial statements 2001 back to growth

• Back to growth
• 3.4 at comparable structure
• 18 accounting annual growth
• Accelerated growth on IID products
• 25 in 2001
• 47.3 for Q4
• Stabilisation of Host Access sales
• - 7.8 in 2001
• Excellent commercial results in the US
• Growth exceeds 10 in 2001

2001 sales reached 32.3 M
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2001 financial statements2001 sales by country
2001 Growth by country

• Performance is heavily influenced by quality of
  implementation of the IID strategy
• Australia growth 36 with 60 of sales in IID
• Germany decrease of 29 with 5 of sales in IID

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2001 Financial statements Over 100 Pulse servers
sold world-wide
2001 revenu M1.5
Valéo, Cofinoga, Imerys, CS Wholesale Grocers
Union Bank of California, Reliant Energy, Pacific
Century Cyberworks, Schneider national, Tab
limited, Toronto Mutual Life, South carolina
State Ports Authority, Rexel, Experian,
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2001 Financial statements IID growth accelerates
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2001 Financial statements 2001 sales by product
line
At comparable structure

• 2001 shows Eskers ability to further grow its
  businesses with two main achievements
• High growth on IID products 25
• Stabilization of Host Access range - 7,8

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2001 Financial statements 2001 sales by quarter
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2001 Financial statements 2001 income statement

• Esker continued to heavily invest in RD, sales
  and marketing

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2001 Financial statements Pro forma income
statement

• Pro forma data include VSI revenues and cost from
  1/1/2000

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2001 Financial statements Analysis of operating
costs
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2001 Financial statements Exceptional items

• As of 12/31/2001 (in 000 of euros)
• Write down of treasury stock 276
• Write down of goodwill 153
• Restructuring costs 343
• 772
• As of 12/31/2000 (in 000 of euros)
• Write down of treasury stock 311
• Restructuring costs 610
• Other 144
• 1 065

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2001 financial statementsCash flow statement

• 2001 showed positive cash flow
• 1.3 million from operating activities
• 0.5 million net increase in cash

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2001 financial statements Balance sheet
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2001 financial statements Balance sheet analysis
Fixed assets
Shareholders equity
Current assets
Current liabilities
Net cash on hand
Deferred income

• A very healthy financial position
• resulting from years of careful management.

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2001 Financial statements Eskers market
capitalization

• Total value Value
  per share
• in M in Euros
• Market capitalization 14.0 4.1
• Cash 8.0 2.3
• Value excluding cash 6.0 1.76

• Esker is valued at (not including cash)
• 19 of 2001 sales
• 1,75 times its cash

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• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strenghts to succeed
• Conclusion

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Srategy I.I.D Sales strategy
Installed base Banking, Insurance, retail,...
Direct sales to large accounts Headpin strategy
Channel sales / partnerships ERP, Output
management, Archiving, Postal services,...
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Strategy I.I.DThe headpin approach
Seg 3 App 1
Seg 1 App 3
Seg 2 App 2
Seg 2 App 1
Seg 1 App 2
Headpin
Seg 1 App 1
The goal is to dominate the market within the
headpin, providing a starting point for the rest
of the bowling pin.
From Inside the Tornado
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Strategy I.I.DSupply Chain Communications
Information Material Finance
Capacity, promotion, plans, delivery schedules
Raw materials, intermediate products, finished
goods
Credits, consignment, payment terms, invoice
Manufacturers
Distributors
Retailers
Customers
Suppliers
Information Material Finance
Sales, orders, inventory, quality, promotion plans
Returns, repairs, servicing, recycling, disposal
Payments, consignment
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Strategy I.I.DA new sales approach
Historical Esker Approach.

• Distributor communication
• Supplier communication
• Customer communication
• Partner communication

• Purchase Orders
• Invoices
• Order Confirmations
• Collection Notices

• Facsimile
• Print
• Secure e-mail
• Web
• Wireless

Business
Solution Selling Approach
Documents
Technology
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IID quarterly sales in Australia
Strategy I.I.DAn remarkable example

• 2002 growth 167

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Strategy I.I.DStrategic alliances with key
partners
Cincom Systems France Télécom Mobius Management
Systems La Poste Zixit Corporation
Complemented by active recruitment of local
partners Novaxel, Lasercom, Creatis,
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• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strenghts to succeed
• Conclusion

44
Eskers strengths to succeed Prestigious
references
Opel, Mercedes Benz, Lufthansa Service,
Commerzbank, Hansestadt Hamburg, Siemens, Frei
Universität Berlin
Germany
Mapfre, Cadena Sol, Diputación de la Coruña,
Porcelanosa, Pirelli, AEG Fabrica de Motores,
Feria Muestrario de Valencia
Spain
Kodak, Casino, Ministère de la Défense, Ministère
du Travail et des Affaires Sociales, France
Télécom, ELF Antar, Sagem, Gec Alsthom, BMW,
Pierre Vacances, EDF, Société Générale, Crédit
Agricole, Seita, Siemens, Continent, Infogrames,
Mercedes Benz, Ikea, Cadbury, Usinor, Cofinoga,
Lafarge
France
UK
Durham County Council, London Ambulance, Houses
of Commons, Ocean Infogram, Rolls Royce,
University of Humberside, Nacanco, BBC
Lloyd Adriatico, Teuco Guzzini, Università di
Napoli, Banca Passadore
Italy
ATT, Healthcare USA, Nieman Marcus, Phillips
Petroleum, Danone Company. Peel Board of
Education, American Express, First USA, The
Vanguard Group, Staples,Target Stores, Ohio State
University, UCLA University of California,
University of Oklahoma Library, General motors,
Motorola, Inc., Mobil Oil Corporation,
Pennsylvania Power Lighting Co, United States
Air Force, Federal Reserve Bank of NY, First
National Bank Trust
Australia
USA Canada
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Eskers strengths to succeed Public accountability

• Well-balanced ownership structure between
  founders and investors
• Independent Supervisory Board
• A commitment to transparence and good corporate
  governance evidenced by the Euronext NextEconomy
  label
• Open communication with all shareholders
• Info Plus newsletter
• Multi channel e-mailing list powered by Pulse

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Eskers strengths to succeed An international
managing team
Emmanuel Olivier VP Finance and Investor Relations
Dan Speer CEO Esker US
Jean-Jacques Bérard VP Research Development
Lynn Weatherby VP Corporate Marketing
Mitch Baxter VP Business Development
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Eskers strengths to succeedEskers vision
Information Delivery
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• Esker at a glance
• Eskers markets
• 2001 Financial statements
• Strategy
• Eskers strenghts to succeed
• Conclusion

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Conclusion

• Esker starts a new growth area
• With a highly promising project targeting a
  growing market
• With very positive initial results
• Esker will benefit from its experience
• Mature products will generate positive cash flows
  to accelerate the success of the IID product line
• Installed bases speed up market presence for new
  products
• International infrastructure (people
  subsidiaries) will help Esker become a world-wide
  leader in IID markets
• Esker has all the necessary resources to succeed
  and stay independent

50
2001 Annual ResultsAnalyst Investor
PresentationParis and Lyon, March 13 and 14,
2002

• Jean-Michel Bérard (Chief Executive Officer)
• Emmanuel Olivier (V.P. Finance and Investor
  Relation)