Marketing & Communication – March 2004 1 2003 Results March 2004

1Marketing & Communication – March 2004

2003 Results

March 2004


• Facts & Figures

• Market – Strategy – Activities

• 2003 Results

• Prospects

Eric Peyre Chairman & [email protected]

Manuel Cruz C.E.O. [email protected]

Pierre Col Marketing, Communication & [email protected]


Facts & Figures


HistoryHistory

• Founded in 1989 : 15 years expertise of online multimedia Minitel, Audiotel, Internet, Web, Wap, SMS, i-mode, MMS…

• Listed on Euronext Paris / Second Marché since 1996

• 420 people, 400 in France + 20 in Italy Lyon Paris

• 2 majors activities Value Added Hosting & Services Advertising & Promotion :

Toulouse Grenoble

Chambéry Milan


GroupGroup

• 3rd French telco with: 70,000 business customers 1,400,000 residential customers

• Strong shareholders, no debt, 400 ME net cash, 1 billion E revenues with 100 ME EBITDA for 2003

• A network with 12 000 km optic fiber connecting 60 cities, huge investments on LL unbundling & DSL access

• A large sales network (30 agencies, 250 people) organized by markets) with 2 brands :

neuf telecom : voice & data IP wireline network solutions Jet Multimédia : hosting solutions for online services

200 telcos & ISPs 2,000 hosting customers


Market – Strategy - Activities


19851985 19951995

MinitelMinitel

Fixed & MobileFixed & MobileTelephonyTelephony

InternetInternet

20042004

"Multichannel Hosting""Multichannel Hosting"


"Multichannel Hosting""Multichannel Hosting"

• French market for multi-channel online services :

50 millions wireline users

42 millions mobile users

22 millions Internet users

15 millions Minitel users

(sources ART, France Telecom, Mediamétrie)


MarketingMarketingAdvertisingAdvertising

StrategyStrategy

MULTI-MULTI-CHANNEL CHANNEL

VALUE ADDED VALUE ADDED HOSTINGHOSTING

• Our Background : Multi-channel online applications involving Internet, Fixed phone, Mobile Phone, Minitel,...

• Our Mission " a one-stop-shop for corporate voice + data online services "

• Our Core Business : Value Added Hosting

ConsultingConsultingIntegrationIntegration


MissionMission

Content & Service

Providers Internet,Minitel,Audiotex, SMS,WAP,I-mode ...

Users


MissionMission

Content & Service

Providers

Vale

ur

Ajo

uté

eDedicated Hosting Dedicated Hosting

Application ManagementApplication Management

IS OutsourcingIS Outsourcing

-----------------------------

Shared Hosting

--------------------------------------

Housing / Colocation


Business CaseBusiness Case

• "Plate-Formes de Services" nationwide IVR+ACD+CTI server to collect the phone calls thru a

"global virtual call center" 70% already deployed, 2 million calls - 6 millions min. per month

• Web portals of the Ministère de l'Education Nationale

www.education.fr - www.education.gouv.fr www.debatnational.education.gouv.fr (thematic site) OpenSource LAMP - Linux, Apache, MySQL, PHP technologies full redundant servers with firewalling & load balancing capabilities,

e-mail platform, audio & video streaming millions of visits per month


Business CaseBusiness Case

• Intranet / Extranet applications on a Microsoft high-performance shared platform: www.dhl.fr site +

Danzas, Ducros Euro Express, DHL International sites Extranet "e-Office" application on a dedicated platform with N-tier

architecture integrating Windows, J2EE, BEA Weblogic, Oracle

• "Contacteur Hyperphone" system to automatically link recruitment agencies to people seeking jobs

when a job mission meets people's profile, the server automatically

issues a call by phone / SMS / e-mail / fax

more than 1 million contacts monthly, 90% successful within less than

one hour

system deployed in France, Benelux and being deployed in the UK


Jet Media : AdvertisingJet Media : Advertising

• Jet Media : an advertising & communication agency Consulting & marketing : strategic advice, direct marketing Design & publishing : studio, publishing & printing, packaging Media planning & ad space buying

• A buying agency to promote online services web site Audiotex service

• In the top five for free newspapers, with 400 titles

• Presence on targeted magazines Weekly: Voici, Maxi, Nous Deux, TV Magazine, Télé Poche, Télé Star… Monthly: Mon Jardin-Ma Maison Business newsletters: Revue Fiduciaire, Revue Comptable

Minitel service Premium SMS service


2003 Results


Revenue GrowthRevenue Growth

M E Annual Sales

+11%+11%


Revenue GrowthRevenue Growth

"Proforma 12 month" data

0

20

40

60

80

100

120

140

160

2002 2003

Advertising

Multi-channelHosting

+7%+7%

+15%+15%

M Euros


Activity breakdownActivity breakdown

"Proforma 12 month" data



"Proforma 12 month" data for Hosting

0

20

40

60

80

100

120

140

2002 2003

Other

SMS & mobile

Minitel

Internet

Audiotex &telephony

+15%+15%

0%0%

+53%+53%

- 31%- 31%

+39%+39%

M Euros



"Proforma 12 month" data for Hosting


Business growthBusiness growth

• Development of telephony services Audiotex : media & content providers CRM : virtual call-centers

• Broadband Internet deployment : more bandwidth increases usage and traffic, Internet users

Are viewing more pages / resources on the sites -> positive trend for Internet hosting

are accepting to pay for premium services, attracting more content providers -> positive trend for Internet micropayment

• Mobile telephony Personalization services : logos, ringtones… Interactive WAP / i-mode services : games…

• External growth with Oxone


Simplified P & LSimplified P & L

millions of euros 2003 2002 (*) 2002

Turnover 120.0 111.4 108.5

Operating income 4.9 -1.6 -3.5

Operating+financial income 6.2 0.8 -1.2

Net income 7.5 3.7 1.8before goodwill amortization

Net income 5.8 2.0 0.1

(*) proforma data integrating for 2002 four month of Oxone Technologies activity and excluding commpanies sold by the end of 2002


Simplified balance sheetSimplified balance sheet

ASSETS 000 euros 2003 2002 (*) 2002

Fixed assets 17 331 21 769 20 328

Current assets 47 328 47 641 41 958

Deferred charges 8 147 6 383 6 322

Cash 33 757 70 441 69 105

LIABILITIES

Stockholder’s equity 59 422 94 609 92 570

Prov. / liabilities & charges 2 544 3 227 3 227

Current liabilities 41 768 44 073 37 606

Other debts 2 829 4 325 4 310

TOTAL 106 563 146 234 137 713

(*) proforma data


Back to profitabilityBack to profitability

• Stopping of non-core business activities & downsizing

• A relevant strategy : the partnership with a telco to obtain better conditions on voice & data traffic

• Increase of sales on the existing customer base

• Break-even for previously non-profitable business in investment phase (Internet)

• Adjustment of all parameters, including investments, to the level of the demand


Infrastructure optimizationInfrastructure optimization

2001 : 9 datacenters in France

Backbone

Leased lines


Infrastructure optimizationInfrastructure optimization

2003 : 3 datacenters in France

Backbone

Secured VPN-IP


Stock ChartStock Chart

6 €

8 €

10 €

12 €

14 €

16 €

18 €

20 €

mars

03

avr

03

mai

03

juin

03

juil

03

août

03

sept

03

oct

03

nov 0

3

déc

03

janv 0

4

févr

04

Private placement


Shareholders – BrokersShareholders – Brokers

Free float


Prospects


0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004(est.)

ProspectsProspects

Source ACSEL / CoPilot Partners – january 2004

Online services market in France (M Euros)


Prospects - in FranceProspects - in France

• Audiotex & telephony services To increase market share on Audiotex / short numbers To grow aggressively on CRM / 0 800 services, for inbound calls

(Contact Access) and outbound calls (Contacteur Hyperphone)

• Internet & E-Business Hosting & Applications Management, with Micro-payment : growth with a new offer integrating EasyClick PMV

with Oxone solution

• Mobile Growth of the SMS / Premium SMS business To provide vaule added in technologies, applications and contents

for WAP / i-mode : personnalization, games, video, entertainment… To anticipate the opening of new markets : MMS, 3G…

• Jet Média : to develop value added


Prospects - internationalProspects - international

• Italy Growth of Jet Multimédia srl (14.7 M Euros, +12% in 2003) Acquisitions to increase the market share and and diversify the

business

• Morocco Operations are beginning in March 2004 : Maroxone Audiotex / SMS & mobile services CRM – inbound & outbound traffic management

• Opportunities in other countries


Documents

Marketing & Communication – March 2004 1 2003 Results March 2004