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May 14, 2008

First quarter 2008 revenue: EUR 438.5m. Global growth: + 38.3%

Consolidated revenue for Q1 2008 increased by 38.3% to €438.5m.
• Like-for-like revenue was virtually stable (-0.3% compared to Q1 2007).
• In the UK, organic growth based on Steria’s historic perimeter was +8.6%. The revenue trend for the full perimeter notably reflects the expected impact of the non renewal of the Learning and Skills Council and MyTravel contracts.
• In Germany, organic growth was 14.4%.
• In France, Q1 2008 is the last period which will be impacted by the effects of the transformation programme before a return to growth which is expected for Q2 2008.
First-quarter 2008 consolidated revenue
 
(In € million)
 
Q1 2007
Q1 2008
Growth
Revenue
317.1
438.5
38.3%
Change in structure
+131.0
 
 
Currency effect
-8.3
 
 
Pro forma revenue
439.9
438.5
-0.3%
 
First-quarter 2008 revenue by geographic zone
 
(In € million)
 
Q1 2007*
Q1 2008
Organic growth
France
135.0
129.8
-3.8%
UK
198.6
193.6
-2.5%
Germany
51.1
58.4
14.4%
Other Europe
55.2
56.6
2.5%
Total
439.9
438.5
-0.3%
 
First-quarter 2008 revenue by business line
 
(In € million)
Q1 2007*
Q1 2008
Organic growth
Outsourcing and BPO
172.2
175.7
2.0%
Consulting and Systems Integration
267.7
262.7
-1.8%
 
* Revenue at constant structure and exchange rates (base 2008).

In Q1 2008, consolidated revenue for the Group, which includes Xansa, increased by 38.3%. Like-for-like revenue was virtually stable (-0.3%). As of 31 March 2008, the ratio of new orders to revenue was 1.1 at the Group level.
In France, the ratio of new orders to revenue of 1.19 at 31 March 2008 underlines the current strong commercial dynamic and enables the Group to expect revenue growth from Q2 2008, after a Q1 revenue which continues to be impacted by the effects of the transformation programme. This programme of increasing value-added, along with a more selective hiring policy in 2007, has been continued, during Q1 2008, with a significant reorganisation in order to facilitate the deployment of the new Group offers and offshore.
In the UK, the Q1 revenue trend was largely attributable to the decline of the Learning & Skills Council and MyTravel contracts following a decision by these clients, which pre-dated Steria’s takeover of Xansa, not to renew them, the full impact of which will occur in Q2. In this zone, the Group has observed no major change in its operating environment. It should be noted that, in the defence domain, there has been a postponement in the start date of a significant contract from H1 to H2 2008.
Germany confirms its strong dynamic with organic growth of 14.4% together with a strong entry order performance.
The Other Europe zone, shows a good trend. In Scandinavia, after the restatement for the disposal in Q4 2007 of the payment terminal activity, the growth was 8.9%.

The integration of Xansa is progressing according to plan in terms of integration, offers deployment and the realisation of cost synergies.

Outlook
Given the distribution of cost savings over the year, the investments made to increase the value added in France and to support the rollout of BPO and offshore, the Group’s targets are based on a stable operating margin rate in H1 and at least 8% for the full year 2008.


Forthcoming events / next publication: Shareholders’ General Meeting on 6 June 2008 at 2.00 p.m.; first-half 2008 revenue on Thursday 14 August before the market opens.