SpR - RELAYTO

ESpR Enterprise Sponsored Research©

Enterprise Sponsored Research©

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Generix Group Generix Group is a French company that designs, installs, and develops integrated software packages for logistics,

distribution and sales management.

Business overview

A collaborative software vendor and SaaS provider for the

retail ecosystem, GENX designs and markets integrated

software products. It offers a range of solutions for use in

enterprise resource planning, product life management,

supply chain management, loyalty development, sales

promotions, retail outlet performance, e-invoicing, tax

dematerialization and data synchronization, among others.

GENX currently derives 8% of its annual revenue from

license sales and 25% from services on demand (or SaaS).

Maintenance benefits represent 34% of total revenue, and

depend on the evolution of the installed base of licenses

sold. Service revenues, which make up 33% of total

revenue, come from the deployment of licenses or services

on demand for new or existing customers.

GENX supplies clients in a number of sectors, including

aeronautics, the car industry, health, advertising, food and

specialized retail, as well as transportation and logistics.

Strengths and weaknesses

GENX has seen its income and margins improve over the

past few years. In recent quarters, it has benefitted from

growth in the software as a service (SaaS) segment, which

has improved license sales and customer loyalty. The

signing of SaaS contracts of a value of EUR10.9 M since

the beginning of 2015 promises a new acceleration for the

current fiscal year.

Software companies in France have had to deal with paltry

growth in software spending and a slowdown in economic

activity. Like most of them, GENX has not yet reached

critical mass and is not sufficiently present in the

international market, where it could grow more quickly. It is

nevertheless moving in the right direction: exports

constituted 26% of sales in 2014, compared to 18% in

2009.

GENX:FP

Application Software 15-Jun-15

Last Price 2.31 EUR 52wk High 2.56 EUR 52wk Low 1.48 EUR Cash Dividend none Dividend Ex-Date none Shares Outstanding 22.1 M Market Cap 54.4 M EUR Shareholder’s equity (2014) 42.0 M EUR Long term debt (2014) 1.6 M EUR Annual Sales (2014) 49.4 M EUR Operating income (2014) 3.5 M EUR Operating margin (2014) 7.2 % Net profit (2014) 3.7 M EUR Net margin (2014) 7.5 % Earnings Per Share (ttm) 0.03 EUR

Sources: Bloomberg, GENX

Trends and outlook

GENX will continue to profit from the accelerating cloud

computing adoption by companies and the increasing

importance of SaaS in French and international markets.

The global supply chain management software (SCM)

market presents opportunities for small providers like

GENX as users are looking for alternative solutions while

some of the larger players are executing M&A strategies.

High demand for specialized SCM offerings is another

advantage for small vendors, and has helped them to

achieve above-average growth.

However, GENX has to keep up with a very competitive

and fragmented market characterized by rapid

technological progress, changes in client needs and the

frequent introduction of new features and products.

To increase the competitive advantage it has built with

SaaS, GENX will invest additional resources, particularly in

research and development which currently represents 12%

of its annual sales.


1

Table of Contents

Business overview .......................................................................................................................................................................... 2

Industry overview ............................................................................................................................................................................ 3

Software as a service (SaaS) ...................................................................................................................................................... 3

Supply chain management software (SCM) ................................................................................................................................ 4

French software industry ............................................................................................................................................................. 5

Industry outlook .............................................................................................................................................................................. 7

Competition .................................................................................................................................................................................... 8

Markets and clients ......................................................................................................................................................................... 8

Business outlook............................................................................................................................................................................. 9

SWOT analysis ............................................................................................................................................................................. 10

Financial overview ........................................................................................................................................................................ 11

Stock Price versus EPS ................................................................................................................................................................ 16

Financial data summary ................................................................................................................................................................ 17

Financial data ............................................................................................................................................................................... 18

Major shareholders ....................................................................................................................................................................... 24

Management ................................................................................................................................................................................. 25

Company history ........................................................................................................................................................................... 26

Company profile............................................................................................................................................................................ 26

Company financial links ................................................................................................................................................................ 27

Company media center ................................................................................................................................................................. 27


2

Business overview

GNX is the result of a merger between three companies: Generix; Influe, which it acquired in 2007; and Infolog, which was

acquired in 2008 and provided transport, warehouse management and traceability solutions.

GENX designs and markets integrated software products. It offers a range of solutions for use in enterprise resource planning,

product life management, supply chain management, loyalty development, sales promotions, retail outlet performance, e-

invoicing, tax dematerialization and data synchronization, among others. The main subsector of the software market where

GENX is active is the application software related to supply chain management.

GENX currently derives 8% of its annual revenue from license sales and 25% from licenses and services on demand (or SaaS).

Maintenance benefits represent 34% of total revenue, and depend on the evolution of the installed base of licenses sold. Finally,

the revenue generated by the supply of services, or 33% of the total annual revenue, comes from the deployment of licenses or

services on demand for new or existing customers.

GENX is present in 30 countries via its subsidiaries in France, Belgium, Italy, Portugal, Spain, Brazil and Argentina, and a

network of international partners. As of September 30, 2014, it had 359 staff.


3

Industry overview

Software as a service (SaaS)

In 2014, the global SaaS market grew by 20.1% to reach USD 54.5BN. This highly fragmented market was headed by

salesforce.com, which held a 9% share from revenues of USD 4.9BN; however, salesforce lost money in the year. IBM was in

second position, generating USD 2.9BN revenues and a 5% share from its SaaS offerings. Both Electronic Arts and Activision

appear in the top eight vendors, as consumer spending is included in the ranking. Microsoft, Oracle, SAP and CA are all major

SaaS players offering their traditional applications and databases to customers via on-line subscriptions.

Global SaaS market share in 2014

Company Revenue (USD M) Share % Net Profit (USD M) Share % Employees Share %

Salesforce $4,923 9.0% -$232 -2.8% 55,705 9.3%

IBM $2,902 5.3% $443 5.3% 52,291 8.7%

Electronic Arts $2,304 4.2% $436 5.2% 19,608 3.3%

Microsoft $1,815 3.3% $400 4.8% 9,398 1.6%

Oracle $1,138 2.1% $318 3.8% 14,645 2.4%

SAP $676 1.2% $128 1.5% 8,005 1.3%

Activision $575 1.1% $109 1.3% 4,278 0.7%

CA $333 0.6% $53 0.6% 3,925 0.7%

Others $39,861 73.1% $6,714 80.2% 434,235 72.1%

Total $54,527 100.0% $8,369 100.0% 602,090 100.0%

Source: ITCandor, 2015

The global SaaS market is dominated by Enterprise Applications cloud solutions such as enterprise resource management

(ERM) with a 24% share of 2013 revenue and customer relationship management (CRM) with 18%, followed by Collaborative

applications with 7%, according to International Data Corporation. System Infrastructure Software cloud solutions – the other

major part of the SaaS market, including Security, Systems Management, and Storage Management cloud services – drove

21% of the SaaS market in 2013.

Different SaaS adoption plans and patterns can be found across the three largest Western European markets which are France,

Germany, and the UK. Because Europe is far from homogenous, vendors need different go-to-market strategies for each

country. U.S.-based vendors have dominated the market for SaaS applications in Europe, but European vendors are rising fast,

particularly in the business applications space.

According to AFDEL (the French association of software and internet solution providers), the share of SaaS represents 7% of

the software market in France, but it is growing quickly. The French SaaS market was estimated at EUR 735M in 2013, and

forecast to grow to EUR 1.79BN by 2015.


4

Supply chain management software (SCM)

The supply chain market is generally oriented towards applications that allow supply chain management to be focused on the

customer and on the optimization of costs. The global market for supply chain technologies is buoyant. Supply chain

management software, maintenance and services generated over USD 8.9BN in 2013, including applications for procurement

software. That represented an over 7% increase over 2012 revenues, according to Gartner. Without procurement, the market

generated USD 6.1BN, a 9% increase over 2012.

The top three providers SAP, Oracle and JDA Software accounted for 45% of the total SCM market in 2013. As detailed in the

table below, SAP held onto the top supply chain management software market position in 2013 with nearly 24% market share,

while Oracle remained second with relatively flat revenue growth. JDA Software, which acquired RedPrairie, was third largest.

The top 10 vendors accounted for 55% of market share. The 58 other vendors combined saw 18% revenue growth, indicating

high demand for specialized offerings.

Supply Chain Management and Procurement Software Vendors by Total Software Revenue

Company 2013 Revenue

(USD M) 2013 Market Share (%)

2012 Revenue (USD M)

2012 Market Share (%)

2012-2013 Revenue Growth (%)

SAP $2,138 23.9% $1,721 20.7% 24.0%

Oracle $1,455 16.3% $1,453 17.4% 0.1%

JDA Software $455 5.0% $426 5.1% 5.0%

Manhattan Associates $168 1.9% $160 1.9% 5.0%

Epicor $159 1.8% $138 1.7% 15.0%

Others $4,569 51.1% $4,433 53.2% 3.0%

Total $8,944 100.0% $8,332 100.0% 7.3%

Source: Gartner, May 2014

Note: Ariba held the fourth market share position in 2012 and is now part of SAP.

RedPrairie held the ninth market share position in 2012 and is now part of JDA Software.

GENX is positioned in the SaaS segment of the supply chain market. The share of SaaS in SCM has grown significantly, and

should pass from 18% in 2011 to 28% in 2016. This applies especially to the SCM subsector Transport Management Systems

(TMS) where at the global level, SaaS revenues already represent 25% of total TMS revenues. The global TMS market was

estimated at USD 820M in 2013, a y-o-y increase of 12%. TMS customers are looking for high logistics visibility and efficiency

as well as a reduction of transport costs. GENX indicates that the gains observed among its customers are at least 15% of the

transport budget after one year.

Another SCM subsector where GENX is also present is the Warehouse Management System (WMS) market, which was

estimated at USD 1.1BN in 2013, growing 3% from 2012, according to Gartner. This market offers potential in the SME

segment, where companies are still underequipped. A certain number of users are looking for alternatives to the solutions

provided by the major suppliers.


5

French software industry

The French software industry has the fourth place in world rankings. It represents more than 70,000 employees and generates

nearly EUR 5.2BN income annually. But it has been in decline since 2010: The growth rate of the top 100 companies in the

sector has fallen from 13.8% in 2010 to 1.5% in 2013.

Top 20 French Software Companies in 2013

Ranking Company Listed Total software sales (EUR M)

Total sales (EUR M)

French software sales (EUR M)

% software exports

1 Dassault Systèmes Yes 1,881 2,066 187 90%

2 Cegedim Yes 303 902 119 61%

3 Murex No 210 335 11 95%

4 Axway Software Yes 182 238 n/a n/a

5 Cegid Group Yes 173 260 156 10%

6 Sopra Group Yes 140 1,349 83 41%

7 Linedata Services Yes 119 160 49 59%

8 Avanquest Yes 88 100 15 83%

9 Esi Group Yes 81 109 8 90%

10 Talend No 73 85 23 68%

11 Bull (incl. Evidian) Yes 69 1,262 23 67%

12 Berger-Levrault No 64 108 62 3%

13 Isagri No 63 91 55 13%

14 GFI Yes 63 743 59 6%

15 Lectra Yes 57 203 5 91%

16 Smartfocus No 53 64 24 55%

17 Pharmagest Yes 45 113 43 4%

18 Infovista No 44 50 10 77%

19 Generix Group Yes 44 64 34 23%

20 Trace One No 38 47 19 50%

Source: AFDEL estimates

French players had to deal with a slowdown in economic activity in the country and, at the same time, manage a delicate

transition to the SaaS model requiring investment and implying a temporary loss of income. The great majority of them do not

have the critical mass enabling them to survive these challenges, leading to greater concentration in the market, as well as

liquidation in some cases.


6

Source: AFDEL

The French software industry is not sufficiently present in the international market, where it could grow more quickly. In 2013,

software spending in France saw one of the lowest growth rates at the global level at 1.3% (down from 3% in 2010) compared

with 6% in North America or 8.5% in Asia-Pacific. French vendors must therefore continue to position themselves globally,

especially in areas such as banking, information technology and data integration.


7

Industry outlook

Cloud computing adoption is accelerating in companies on a global scale. Cisco is predicting that by 2018, 59% of the total

cloud workloads will be Software-as-a-Service (SaaS) workloads, up from 41% in 2013. Infrastructure-as-a-Service (IaaS)

workloads will be 28% of the total cloud workloads, down from 44% in 2013. 13% of the total cloud workloads will be Platform-

as-a-Service (PaaS) workloads in 2018, down from 15% in 2013. Global SaaS software revenues are forecasted to reach USD

106B in 2016, increasing 21% over projected 2015 spending levels.

Supply chain investments remain a high priority even as IT budget decision makers continue to exercise caution. This has

resulted in stronger price-based competition and smaller contracts in the SCM market. Cloud and subscription-based pricing is

shifting revenue streams and influencing growth. Many new deals are for specific functionality, rather than full-suite

deployments. Gartner is predicting a CAGR of 9.9% for SCM software excluding procurement starting from 2013, reaching USD

9.8BN in 2018.

Although the SCM software market is nearing the point at which over 60% of its revenue will derive from existing

implementations, in terms of new spending in 2013 approximately 16% of SCM investments were by companies adopting this

software for the first time. Gartner expects this figure to fall to less than 10% by 2018, and that the vast majority of new spending

will come from organizations that already have SCM and are purchasing add-on functionality. Through 2018, 40% of new

spending and 80% of recurring end-user spending will focus on advancing and extending foundational supply chain capabilities.

Providers will therefore have to focus increasingly on securing long-term contracts, and on engaging existing customers in order

to ensure their continued loyalty.

The biggest change in the SCM market may be the way processes that once operated in their own silos are now converging into

the broader supply chain management space, such as procurement. That is reflected in the appearance of tracks on

procurement and supply management at conferences. It is also reflected in the growing revenues in the procurement software

space. Less supplier revenue is being generated out of supply chain planning and execution applications with more activity in

procurement. Companies are more and more looking to integrate their procurement activities into their manufacturing,

distribution and transportation strategies.

The Transport Management System (TMS) sub-segment is particularly promising, especially in France where the equipment

rate is estimated at between 20% and 30% of companies. At the global level, much of the growth of the mid-market TMS is

anticipated to come from mid-sized shippers spending USD 25M to USD100M a year on freight. Some leading TMS providers

are now offering tools that allow for what-if scenarios outside the traditional planning horizon, and analytics are expected to be a

more common feature in the new TMS offers. Solution providers are also moving away from dedicated hardware that has to be

installed inside the cab of a truck to deploying their solutions on smart phones and tablets that may simply plug into a

dashboard. These are less cumbersome, offer a more modern interface, and can take advantage of social media.


8

Competition

In the supply chain software market, the main international competitors of GENX are SAP and Oracle. International specialists

include JDA Software (which merged with RedPrairie), Manhattan Associates, Symphony EYC (which bought Aldata) and

Descartes System Group. Specialists in the French market are Hardis, A-Sis, Acteos and DDS Logistics.

The main actors in the EAI, EDI, dematerialization, and B2B portals market are the large American and European players

including Oracle, Microsoft, IBM, SAP, GXS, Seeburger, Axway, Software AG, Edicom, Comarch, Edi Tie and Tibco. GENX also

competes against EDI specialists such as Euroedi, TX2 Concept, AGENA 3000, EDT, and @GP.

Markets and clients GENX has a strong European presence, especially in France, its home market. Over the last few years, GENX has gradually

developed its export market.

GENX counts over 1,500 companies among its clients, most of which are based in Europe. They include Auchan, Carrefour,

Cdiscount, DHL, Feu Vert, Gefco, Kuehne + Nagel, Leroy Merlin, Louis Vuitton, Metro, Nestlé, Sodiaal, and Unilever, among

others. GENX supplies clients in a number of sectors, including aeronautics, car industry, health, advertising, food and

specialized retail, as well as transportation and logistics.


9

Business outlook

Effective May 2, 2014, GENX sold its Enterprise Resource Planning (ERP) GCE business to American firm Aurea. The

transaction was realized on the basis of a EUR 12.25M valuation for the ERP GCE business. For Aurea, the GCE business will

form the core of a new division focused exclusively on the needs of global retailers, and will strengthen Aurea's presence in

France, one of its most important, strategic markets. For GENX, the purpose of the transaction was to support the development

of its SaaS offers in the supply chain, cross-channel and integration solutions.

GENX reported revenue of EUR 14.3M for the quarter ending 31 March 2015, a y-o-y increase of 15%. This growth was

primarily driven by the increase in new SaaS signings since the beginning of the 2013/2014 financial year, resulting in 36%

growth in the revenue generated by this activity over the most recent quarter. The new implementations generated by the SaaS

signings lead to 12% y-o-y growth in consulting and services revenue. In addition, the loyalty of the installed license customer

base produced 17% growth in license sales and 2% growth in maintenance revenue.

The growth in sales since the beginning of fiscal 2013/2014 is confirmed over fiscal 2014/2015 (between 1 April 2014 and 31

March 2015) with a 23% y-o-y increase in the number of new SaaS contracts. GENX secured signatures amounting to EUR

10.9M in new SaaS contracts as of 31 March 2015, versus EUR 8.8M a year earlier.

As the new SaaS contracts signed run for an average of 3.7 years, the signatures recorded over fiscal 2014/2015 will, once the

various deployments are completed, allow GENX to generate additional annual sales of close to EUR 3M, which is an increase

of over 22% in monthly recurring revenue (after taking into account contracts that are signed but which have not started yet, and

cancellations that have not yet taken effect).

Customer loyalty is improving for GENX with an attrition rate over fiscal 2014/2015 that is down 20% compared to the previous

reporting period. It is also manifest in the lengthening of customer commitments on new contracts and renewals. The benefits

from the signatures recorded over fiscal 2014/2015 and the extension of the commitment period caused the SaaS backlog (firm

orders received in SaaS spread over several years which are not yet recognized as revenue) to increase nearly 50% y-o-y.

GENX will invest additional resources to increase the competitive advantage it has built with SaaS in its domestic and

international markets, particularly in research and development which currently represents 12% of annual sales.

.


10

SWOT analysis

Generix SWOT Analysis

Strengths Weaknesses

Improving income and margins Lack of geographic diversification: 74% of the

revenue is generated in France

Growth of on demand (SaaS) and license sales and improved customer loyalty in recent quarters

Little progress in sales revenue over previous years

12% of annual revenue is spent on R&D Has not yet reached critical mass

Opportunities Threats

Accelerating cloud computing adoption by companies globally

Highly competitive and fragmented market

SaaS is gaining in importance in the French and the global market

Failure to improve existing technologies and to develop new products that correspond to customer needs could negatively affect sales

High demand for supply chain management (SCM) software, in particular specialized offerings

Failure to maintain the engagement and loyalty of existing customers would reduce future revenue

Source: EspR


11

Financial overview

The ERP GCE business that GENX sold to Aurea represented 23% of GENX's revenue in fiscal year 2012/2013, or EUR 14.8M.

This transaction accounts for most of the decline in GENX annual sales.

Source: Generix

Source: Generix


12

Source: Generix

Source: Generix


13

Between 31 March 2013 and 31 March 2014, GENX net income grew by 126.85% from EUR 1.63M to EUR 3.70M. A slight

reduction in the selling, general and administrative costs as a percentage of sales was a component in the net income growth

despite flat revenues.

Source: Generix

Source: Generix


14

Source: Generix

Source: Generix


15

Source: Generix

Dupont Analysis

2010 2011 2012 2013 2014

Operating Margins -0.04 -0.08 -0.01 0.02 0.07

Net Margins -0.04 -0.09 -0.03 0.03 0.07

Asset efficiency -2.77 -6.23 -2.37 1.77 3.95

Financial Leverage 2.59 2.77 2.45 2.41 2.25

Return on Equity -7.22 -16.66 -6.16 4.31 9.20

Return on Assets -2.77 -6.23 -2.37 1.77 3.95

Source: Euronext


16

Stock Price versus EPS

Sources: Bloomberg, Generix


17

Financial data summary

Annual Financial data (EUR M, except per share items)

2010 2011 2012 2013 2014

Product Sales 39.8 39.4 41.8 32.4 33.1

y/y growth 6% -1% 6% -23% 2%

Services Sales 28.8 26.8 22.5 15.6 16.3

y/y growth -5% -7% -16% -31% 5%

Total Sales 68.6 66.2 64.3 48.0 49.4

y/y growth 1% -3% -3% -25% 3%

Cost of revenue 2.4 2.1 2.1 1.1 1.2

as % of Sales 4% 3% 3% 2% 2%

Operating income -2.7 -5.2 -0.9 1.0 3.5

Operating margin -4% -8% -1% 2% 7.2%

R&D 10.2 9.0 6.8 6.2 6.1

as % of Sales 15% 14% 11% 13% 12%

SG&A 62.0 63.0 58.0 32.0 33.0

as % of Sales 90% 95% 90% 67% 67%

Depreciation/amortization 6.1 5.7 4.0 2.2 1.7

Total operating expenses 71.0 71.0 65.0 47.0 46.0

Financial expenses 0.3 0.3 0.3 0.3 0.4

Net pre-tax income -3.5 -5.9 -1.6 0.6 3.1

Provision for income taxes -0.8 -0.3 0.5 0.7 -1.1

Tax rate 33% 33% 33% 33% 33%

Net income -2.8 -5.6 -2.1 1.6 3.7

Net margin -4% -9% -3% 3% 7%

Diluted normalized EPS -0.18 -0.37 -0.04 -0.01 0.16

Sources: Generix, Euronext


18

Financial data

Annual Income Statement (EUR M, except per share items)

2014 2013 2012 2011 2010

Total revenue 49.4 48.3 64.3 66.2 68.6

Cost of revenue total 1.2 1.1 2.1 2.1 2.4

Selling, general and admin. expenses, total 33.0 32.0 58.0 63.0 62.0


Other operating expenses, total 10.0 12.0 0.8 0.8 0.5

Total operating expense 46.0 47.0 65.0 71.0 71.0

Operating income 3.5 1.0 -0.9 -5.2 -2.7

Operating income 3.5 1.0 -0.9 -0.1 -0.2

Other, net -0.1 -0.1 -0.1 -5.9 -3.5

Net income before taxes 3.1 0.6 -1.6 -0.3 -0.8

Provision for income taxes -1.1 0.7 0.5 -5.7 -2.8

Net income after taxes 4.3 -0.1 -2.1 -0.1 0.0

Net income before extra. Items -0.1 0.0 0.0 -5.7 -2.8

Total extraordinary items 4.2 -0.1 -2.1 0.0 0.0

Net income 3.7 1.6 -2.1 -5.7 -2.8

DPS - common stock primary issue 0 0 0 0 0

Gross dividend - common stock (EUR) 0 0 0 0 0

Basic normalized EPS (EUR) 0.16 -0.01 -0.04 -0.37 -0.18

Diluted normalized EPS (EUR) 0.16 -0.01 -0.04 -0.37 -0.18

Sources: GENX, Euronext


19

Interim Income Statement (EUR M, except per share items)

Sep 30 2014 Mar 31 2014 Sep 30 2013 Mar 31 2013 Sep 30 2012

Total revenue 25.0 49.0 24.0 48.0 30.0

Cost of revenue total 8.1 15.0 7.5 15.0 9.3

Selling, general and admin. expenses, total 15.0 30.0 15.0 29.0 19.0


Other operating expenses, total 0.9 -0.9 -0.2 0.2 1.2

Total operating expense 25.0 46.0 23.0 47.0 31.0

Operating income 0.3 3.5 1.5 1.0 -0.8

Other, net 0.0 0.0 0.0 0.0 -0.1

Net income before taxes 0.1 3.1 1.3 0.6 -1.0

Provision for income taxes 0.1 -1.1 0.4 0.7 0.3

Net income after taxes 0.0 4.3 0.9 -0.1 -1.3

Minority interest 0.0 -0.1 -0.1 0.0 0.0

Net income before extra. Items 0.0 4.2 0.9 -0.1 -1.3

Total extraordinary items -0.9 -0.5 -0.5 1.8 0.0

Net income -0.9 3.7 0.3 1.6 -1.3

DPS - common stock primary issue 0 0 0 0 0

Gross dividend - common stock 0 0 0 0 0

Basic normalized EPS 0.0 0.16 0.02 -0.01 -0.05

Diluted normalized EPS 0.0 0.16 0.02 -0.01 -0.05


20

Annual Balance Sheet (EUR M)

2014 2013 2012 2011 2010

Cash And Short Term Investments 4.8 7.4 9.2 3.7 5.8

Total Receivables, Net 25.0 32.0 27.0 25.0 29.0

Total Inventory 0 0.0 0 0.2 0

Prepaid expenses 0 0 0 0 0

Other current assets, total 19.0 0 0 0 0

Total current assets 49.0 39.0 36.0 29.0 35.0

Property, plant & equipment, net 1.2 1.0 1.1 1.9 2.3

Goodwill, net 34.0 43.0 43.0 43.0 43.0

Intangibles, net 3.5 4.8 6.6 8.4 12.0

Long term investments 0.3 0.5 0.5 0.5 0.6

Total assets 94.0 93.0 91.0 87.0 96.0

Accounts payable 17.0 21.0 21.0 23.0 23.0

Current portion long-term debt/capital leases 4.6 7.2 5.1 2.4 7.4

Other current liabilities, total 25.0 20.0 21.0 22.0 21.0

Total current liabilities 46.0 48.0 47.0 47.0 52.0

Total long term debt 1.6 1.5 4.2 5.7 4.0

Total debt 6.1 8.7 9.3 8.1 11.0

Minority interest 0.4 0.3 0.3 0.3 0.3

Other liabilities, total 4.0 4.8 2.8 2.5 2.4

Total liabilities 52.0 54.0 54.0 56.0 59.0

Common stock 13.0 13.0 13.0 7.2 7.2

Additional paid-in capital 30.0 30.0 30.0 28.0 28.0

Retained earnings (accumulated deficit) -1.2 -4.5 -5.8 -3.8 1.7

Total equity 42.0 39.0 37.0 31.0 37.0

Total liabilities & shareholders' equity 94.0 93.0 91.0 87.0 96.0

Total common shares outstanding 26 25 26 16 15

Treasury shares - common primary issue 0.25 0.39 0.09 0.08 0.04


21

Interim Balance Sheet (EUR M)


Cash And Short Term Investments 9.4 4.8 2.8 7.4 3.3

Total Receivables, Net 23.0 25.0 22.0 32.0 22.0

Other current assets, total 0.0 19.0 0.0 0.0 0.0

Total current assets 32.0 49.0 25.0 39.0 25.0

Property, plant & equipment, net 1.2 1.2 0.9 1.0 1.2

Goodwill, net 34.0 34.0 43.0 43.0 43.0

Intangibles, net 3.3 3.5 4.4 4.8 5.7

Long term investments 0.4 0.3 0.4 0.5 0.5

Total assets 76.0 94.0 77.0 93.0 80.0

Accounts payable 21.0 17.0 18.0 21.0 18.0

Current portion long-term debt/capital leases 2.8 4.6 4.2 7.2 8.4

Other current liabilities, total 6.6 25.0 8.7 20.0 9.6

Total current liabilities 30.0 46.0 31.0 48.0 36.0

Total long term debt 1.4 1.6 2.3 1.5 3.6

Total debt 4.2 6.1 6.4 8.7 12.0

Minority interest 0.3 0.4 0.3 0.3 0.3

Other liabilities, total 2.9 4.0 5.3 4.8 4.5

Total liabilities 35.0 52.0 39.0 54.0 44.0

Common stock 13.0 13.0 13.0 13.0 13.0

Additional paid-in capital 30.0 30.0 30.0 30.0 30.0

Retained earnings (accumulated deficit) -2.3 -1.2 -4.4 -4.5 -7.3

Total equity 41.0 42.0 39.0 39.0 36.0

Total liabilities & shareholders' equity 76.0 94.0 77.0 93.0 80.0

Total common shares outstanding 26 26 26 25 26

Treasury shares - common primary issue 0.06 0.25 0.06 0.39 0.13


22

Annual Cash Flow (EUR M)

2014 2013 2012 2011 2010

Net income 4.3 -0.1 -2.1 -5.6 -2.8

Depreciation/depletion 1.5 2.5 3.5 6.6 6.1

Non-Cash items 1.3 -0.5 0.5 0.5 0.4

Changes in working capital -0.4 -2.1 -3.8 2.7 4.9

Total cash from operations 4.7 -0.1 -2.1 3.2 7.0

Capital expenditures -0.7 -0.6 -0.3 -1.1 -1.9

Other investing and cash flow items, total -0.7 -0.3 -1.1 -0.8 -1.8

Total cash from investing -1.4 -0.9 -1.4 -2.0 -3.7

Financing cash flow items -0.5 0.3 0 0 0

Issuance (retirement) of stock, net -0.6 -0.3 7.9 -0.1 0.0

Issuance (retirement) of debt, net -1.7 -0.9 1.2 -3.3 -4.1

Total cash from financing -2.7 -0.8 9.1 -3.4 -4.1

Net change in cash 0.6 -1.8 5.5 -2.2 -0.9

Net cash-begin balance/reserved for future use 7.4 9.2 3.7 5.8 6.7

Net cash-end balance/reserved for future use 8.0 7.4 9.2 3.7 5.8

Depreciation, supplemental 1.5 2.5 3.5 6.6 6.1


23

Interim Cash Flow (EUR M)


Net income 0 4.3 0.4 -0.1 -1.3

Depreciation/depletion -0.4 1.5 1.5 2.5 2.5

Non-Cash items -5.0 1.3 0.4 -0.5 0.4

Changes in working capital -1.8 -0.4 -3.8 -2.1 -9.2

Total cash from operations -7.5 4.7 -1.5 -0.1 -7.9

Capital expenditures -0.3 -0.7 -0.1 -0.6 -0.5

Other investing and cash flow items, total 12.0 -0.7 -0.3 -0.3 -0.2

Total cash from investing 11.0 -1.4 -0.4 -0.9 -0.7

Financing cash flow items -0.3 -0.5 0 0.3 0

Issuance (retirement) of stock, net 0 -0.6 -0.4 -0.3 0

Issuance (retirement) of debt, net -2.0 -1.7 -2.2 -0.9 2.7

Total cash from financing -2.3 -2.7 -2.6 -0.8 2.7

Net change in cash 1.4 0.6 -4.5 -1.8 -5.9

Net cash-begin balance/reserved for future use 8.0 7.4 7.4 9.2 9.2

Net cash-end balance/reserved for future use 9.4 8.0 2.8 7.4 3.3

Depreciation, supplemental -0.4 1.5 1.5 2.5 2.5


24

Major shareholders

GENX Shareholders

Shareholders Number of

shares % ownership

rights % voting

rights

Pleiade Investissement 12,715,000 49.32% 46.17%

Famille Poirier 34,576 0.13% 0.20%

Jean-Charles Deconninck 568,759 2.21% 2.10%

Subtotal Concert Pleiade, Poirier, Deconninck

13,318,335 51.66% 49.15%

Quaeroc 3,044,110 11.81% 11.22%

Gérard Vérin 84,178 0.33 % 0.47%

Philippe Seguin 114,994 0.45% 0.51%

Alain Lévy 322,843 1.25% 2.15%

Ludovic Luzza 25,000 0.10% 0.09%

Gérard Claverie 10,033 0.04% 0.07%

Jean-Philippe Gallant 17,954 0.07% 0.13%

Dominique Despiney 360,341 1.40% 2.61%

JFG Développement 60,000 0.23% 0.44%

Jean-Noël Labroue 100 0,00% 0,00%

Marie-Laure Bordais 1,000 0.00% 0,00%

Employees 92,058 0.36% 0.34%

Treasury shares owned through a liquidity contract

253,051 0.98% 0.93%

Floating 8,075,135 31.32% 31.87%

Total 25,779,132 100.00% 100.00%

Source: Generix


25

Management

GENX Management Profiles

Title Name Description

Chairman of the Supervisory Board

François Poirier

Mr. Francois Poirier has been Chairman of the Supervisory Board at Generix SA since September 1, 2011. He is Member of the Audit Committee and of the Nominating and Remuneration Committee and of the Strategy Committee of the Company. Currently, he also holds several other positions outside the Company, including Chief Executive Officer of Le Polyptyque SAS, and Director of Netgem SA, Chairman of the Board of Pleiade Investissement SAS, Member of the Supervisory Board of Smart Trade Holding Director of Industries et Finances Partenaires SAS, among others. He worked for IDI from 1983 until 1990. He then managed Astorg, a branch of the Suez group between 1990 and 1997. He is co-founder of Seeft, which is a capital priming fund, and Chairman of Pleiade Investissement SAS. He holds a degree from HEC (1981).

Chairman of the Management Board

Jean-Charles Deconninck

Mr. Jean-Charles Deconninck has been Chairman of the Management Board of Generix SA since March 30, 2005. He holds an Engineering degree from Ecole des Hautes Etudes Industrielles (HEI) de Lille (Ecole des Hautes Etudes Industrielles). He started his career at IBM in 1986, where he held the following positions: Sales Engineer, Head of Department of Sales, and Manager of the Distribution business in France and Belgium and European Marketing Manager for Retail. In 2000, he became Manager of Europe for LGS Europe and participated in the acquisition by IBM Corporation of the Company. He acted as a service consultant on an international level and then was in charge of the European restructuring of LGS Europe. In January 2005, he moved to Generix SA as a consultant to the President, and became Chairman of the Management Board in March 2005. Currently, he also serves as Vice Chairman of the Supervisory Board of Divalto SA and Director of Influe Portugal, as well as Chairman of the Board of Association OGEC Petit Val, among others.

CFO Ludovic Luzza

Mr. Ludovic Luzza has served as Chief Financial Officer and Member of the Management Board of Generix SA since July 18, 2013. He became Chief Financial Officer of the Company on January 6, 2012. He additionally holds the post on Director within Generix Group Italie and Generix Group BENELUX SA. After starting his professional career in large distribution, he worked as Audit Manager for Mazars in Lille, France from 2004 to 2009, when he joined the Company. He is an accountant. He began his career in retail before joining the audit firm Mazars, where he worked for six years as an auditor and then as Director of Mission. He joined Generix Group in 2009 as Chief Accountant.

Director of the Industrial Division

Philippe Seguin

Mr. Philippe Seguin has been Director of the Industrial Division and Member of the Management Board of Generix SA since April 12, 2005. He holds a degree from Ecole Superieure des Techniques Aeronautiques et de Construction Automobile. He also has a degree from Ecole Superieure de Commerce de Paris. He was a mechanical engineer for Arianespace Kourou between 1992 and 1994. In 1995, he moved to the Chamber of Commerce and Industry in Paris where he was in charge of business for Africa, the south Indian Ocean region and the Latin American region. In 1997, he moved to Transciel, and in 2004 he moved to Generix SA as Director of Consultancy and Services.

Source: Bloomberg


26

Company history

GENX History Highlights

2014 Sale of the ERP GCE business valued at EUR 12.25M to American group Aurea

2011 Birth of the "Collaborative Business" offer. Confirmation of orientation to the On Demand model.

2010

Launch of TMS On Demand. Launch of Cross Channel in services mode.

2009

Launch of WMS On Demand and of the generixgroupondemand.com site

2008

Convergence of offers to create the Collaborative Supply Chain.

2007

Acquisition of Influe and Illicom, European leaders of inter-company flow management. Acquisition of Infolog Solutions, French leader in warehouse management.

2006

Generix receives the Oseo Anvar label.

2005

Change of management. Acquisition of Ceitel, specialised in the store management solution under the Agil brand.

2004

Verticalisation of the ERP for Distribution and Retail

1998

Generix is listed on the stock exchange.

1990

Foundation of Generix in Villeneuve d'Ascq. Development of the multi-sector ERP.

Source: Generix

Company profile

GENX Corporate Information

Company Name Head Office

Generix Group Immeuble le Verdi 6 rue du Moulin de Lezennes 59654 Villeneuve d'Ascq, France

Phone Listed on

+ 33-3-20-41-48-00 Euronext

Website Fiscal Year

www.generixgroup.com January 1st to December 31st

IR Contact IR Web

Ludovic Luzza http://www.generixgroup.com/en/investors

IR Mail IR Phone

[email protected] +33-1-77-45-42-80

Source: Generix

http://www.generixgroupondemand.com/


27

Company financial links

Q4 2014 revenue announcement

Semi-annual Report FH 2014

Annual report 2013

Company media center

Press releases

Events

Videos

Sector Studies

News about GENX and the Sector

Date News Link

14-Apr-15 Les enseignes ont tout à gagner à (vraiment) s'engager localement

25-Feb-15 La logistique sous le signe de l’innovation

7-Jan-15 Enterprise software spend to reach $620 billion in 2015: Forrester

9-Dec-14 Le niveau de maturité Cloud des organisations françaises a franchi un palier

29-Jul-14 $10 Billion Supply Chain Software Revenues in 2014

Sources: Various

http://www.generixgroup.com/en/investors/financial-press-releases/13701,Q4-revenue-2014-2015.htm

http://www.generixgroup.com/ressources/documents/5/13288,Rapport-financier-semestriel-30092.pdf

http://www.generixgroup.com/ressources/documents/5/12843,GENERIX_DOC_REF_31_MARS_2014-vdef.pdf

http://www.generixgroup.com/en/investors/financial-press-releases/13701,Q4-revenue-2014-2015.htm

http://www.generixgroup.com/en/news/events/

http://www.generixgroup.com/en/news/generix-tv/

http://www.generixgroup.com/fr/actualites/publications.htm

http://www.e-marketing.fr/Thematique/retail-1001/Breves/Etude-Generix-Group-Toluna-revelent-pourquoi-distributeurs-doivent-engager-localement-253263.htm

http://www.informatiquenews.fr/la-logistique-sous-le-signe-de-linnovation-isabelle-badoc-generix-group-30820

http://www.zdnet.com/article/enterprise-software-spend-to-reach-620-billion-in-2015-forrester/

https://www.pac-online.com/le-niveau-de-maturit%C3%A9-cloud-des-organisations-fran%C3%A7aises-franchi-un-palier

http://www.supplychain247.com/article/10_billion_supply_chain_software_revenues_in_2014/logility


28

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