annual_2003.ppt

Copyright Linedata ServicesMarch 2004 -

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LINEDATA LINEDATA SERVICES GROUPSERVICES GROUP

Annual results 2003Forecast for 2004

March 2004

Copyright Linedata ServicesMarch 2004

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Contents

Linedata Services: a successful company ready to pursue its growth

Net margin exceeds targets

Asset Management: focus on organic growth in 2004

Leasing and Credit Finance: sustain strong European growth throughout 2004

Savings and Insurance: take advantage of the thriving Insurance/Retirement savings market in 2004

Conclusion: Our ambition is undiminished


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Revenues doubled since IPO

In millions of euros

2001 2002 2000

94.7

100.3

2003

53.7

79.1

110.0 Pro forma

2003 Pro forma


4

Strong track-record for external growth

6 successful acquisitions in 4 6 successful acquisitions in 4 yearsyears

2000

2001

PEN LAN 1992 Systems Engineering, FranceEKIP 1978 Leasing & Credit Finance, France LONGVIEW 1986 Asset Management, US & UK

2002 IAS II 1994 Asset Management, UK

PIMS 1986 Asset Management, UK ESDS 1990 Retirement Savings/Life Insurance,

France

2003


5

Continuously improving profitability

Profitability ratios since IPO

In % of revenues

18

16

14

12

10

8

6

2000 2001 2002

Net margin before goodwill EBIT margin after profit sharing

2003

13.5%

8.3%

16.6%

10.8%


6

An efficient and fully operational management structure

Chairman & CEO Anvaraly Jiva

Strategy : Yves StuckiAdministration & Finance : Gilles LabossièreInternational devt : Mike de VerteuilMarketing & Communi. : Thomas HirschASP : Jean-Louis Sapei

Operational Management

Tunisie35

Allemagne5

Etats-Unis90

UK110

EuropeContinentale

160

360 employees 180 employees 120 employees

France140

France

Asset ManagementPascal Xatart

Leasing & Credit FinancePhilippe Gaillard /Jean-Louis Sapei

Savings & InsuranceThierry Soret /Jack Hazout


7

Capital ownership

Public 55%

Managers & Employees 38%

APEF 7%


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2003 revenues : +5.9%

24.6

2003

22.9

100.3

52.8

Scopevar.

Group

Leasing & Credit Finance

Savings and Insurance

Asset Management


20.6

2002

20.5

94.7

53.6

-

2.8

13.0

(0.1)

-

(4.1)

10.2 (4.0)

4.1

(0.4)

(3.3)

(7.0)

Asset Management: the variation in scope compensates for weak organic growth

Leasing & Credit Finance: keeping on strong organic growth

Savings and Insurance: ESDS integration starting

Unfavourable exchange rates account for €4.1M

Organicvar.

Exchangevar.


10

Asset Management: a transitional FY 2003

12.5

2003

25.2

52.8

15.1

Scopevar.

Asset Management

UK

Continental Europe

USAIn millions of euros

2.5

2002

28.5

53.6

22.6

10.2

-

10.2

(1.2)

0.0

(4.0)

- (2.8)

1.0

(3.3)

(7.0)

(4.7)

USA: difficult year after outstanding FY 2002 Investors hesitant faced with market fluctuationsUnfavorable exchange ratesWeek sales force

UK: strong sales forceICON activities successfully integrated, new licenses salesIASII gradually migrated onto ICON Organic growth +8%

Continental Europe: positions strengthenedMajor contracts wins in FranceImpact of economic slowdown on customer base development

Exchangevar.

Organicvar.


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Leasing & Credit Finance: beyond target

2003, an outstanding year: Some major wins

Consumer credit with Lukas Bank in PolandAccelerated pan european roll-out of existing customers

Toyota France, Peugeot, Wafasalaf, etc.

Start-up of ASP business modelToyota France, FranFinance Suisse

Car finance 48%

Equipment leasing33%

Consumer credit 19%

Revenues break-downRevenues break-down


12

Savings & Insurance: expanding into new markets

Consolidation of the ESDS businessConsolidated over 2 months for €2.8MPro forma revenues: €12M

Employee savings7.4 million employee accounts managed at December 31, 2003Contracts with main market players renewedEmployee shareholding: Thomson flotation, Renault

Employee savings€20.1M

Insurance €2.8M


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2003 Earning per Share exceeds targets: +23.6%

EBIT 15.8

2002

EBIT margin

Net profit before goodwill

16.7%

8.7

Net margin before goodwill 9.2%

16.7

2003

16.6%

10.9

10.8%

+5.7%

Var

+25.2%

Revenues 94.7 100.3 + 5.9%

Consolidated net profit 5.3 7.1 +32.8%


EPS in euros 0.55 0.68(*) +23.6%

EBIT margin maintained at 16.6%

Strong growth in net margin at 10.8%

Value creation for shareholders: EPS= +23.6%

(*) Includes shares created from acquisition of ESDS


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2003 earnings:contribution of each business unitOn December 31, 2003

22.9%

24.4%

34.3%

21.6%

Revenues EBIT margin

52.7% 44.1%

Savings & Insurance

Leasing & Credit Finance

Asset Management

EBIT margin by business: Asset Management : 13.9%

Leasing & Credit Finance : 14.7%

Savings & Insurance : 24.9%


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A sound financial base


Significant drop in capital gearing: 44% vs 52% in 2002Increase in Cash Flow: €11.3M vs €9.8MExtension of debt maturity: 5 years

On December 31, 2003

6.6

Working capital

requirement

Net Fixed assets Shareholders' equity

Net financial debt

29.1

66.2

Assets Liabilities

88.788.7


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Market grows again after a 2-year downturn

Potential recurring market over €300M

A unique "best of breed" product offering

A strong and aggressive Sales & Marketing force

A realistic growth target for 2004

Asset Management: return of growth


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Market trends in 2004

Further pressure to cut costs, increase performance and the economies of scale

New regulations to be implemented

Platform technology and operation reaching maturity

Front office

Back office

Middle office

Pressure from market and regulators to efficiently manage the investment lifecycle

Industrialisation of processes and reporting tools

Looking for cost of transactions optimisation, i.e. best execution

Increasing internationalisation of platforms

Increase in outsourcing (including ASP, facilities management)

Increase in specific developments to update systems

Demand takes off for compliance software packages

Emerging demand for flexible solutions which are interoperable with existing systems

Acquisition of technology tools, providing access to market liquidity and connection to the main networks

Multi-site and multi-country roll-outs

Trends Impact


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Asset Management: competitive environment

Worldwide

Multi-country

Local

Specialist Multi-specialist Generalist/Unifying hub

CHARLES

RIVERLATENT ZEROMac GREGOR

EZ CASTLENETIK EAGLE

IGEFIFORBATEC

DPIVERMEGUNIONE

FIDUCIARI

ADVENT

SIMCORP

MISYS

SUNGARD

SS2C

PFS

DST


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A complementary and recurrent potential market of €280M

Back Office

1500 companies

LDS

8%

Other

publishers

77%

bespoke +

Renewed.

15%

225 prospects Client revs. €260K Potential revs. €58M

600 companies

LDS 2%

Other

13%


Middle Office

bespoke +

to be equipped

85%

900 companies

Other

publishers

57%


Front Office

LDS

8%

bespoke. +

Renewed.

35%

New business

Cross-selling

125 clients MO Potential €15M FO Potential €31M

12 clients BO Potential €3M FO Potential €3M

Cross-selling

70 clients BO Potential €18M MO Potential €10M

Potential cross-selling revenues - €80M (per year)

Potential new business revenues - €200M (per year)

Cross-selling

New business New business


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Understanding our clients' needs

An effective control of our clients' investment policies

A modular solution complying with current regulations and able to be rolled out in several countries

Fast and effecive access to the market

Decrease in total transaction costs

Maintaining a unique and consolidated position (by country, by product)

A solution which could be linked to all products on the market in the long term

Order Management System

Position Keeping

Fund Accounting

Co

mp

lian

ce

We

b R

ep

ort

ing

A flexible and fully customizable reporting solution


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FRONT-OFFICE

BACK-OFFICE

Our answer: a "Best of Breed" offering

TDP Module (position keeping)

LONGVIEW TRADING(order management system)

CHORUS / ICON(fund accounting) L

INE

DA

TA

CO

MP

LIA

NC

E

(ex

Sp

ice)

(co

mpl

ianc

e)

FR SW LUX GER IRL …

WE

B R

EP

OR

TIN

G

(rep

ort

ing

)

An integrated front-to-back offering

A set of "best of breed" solutions that covers all the investment process lifecycle


23

Expansion into Asia (Singapore) in 2004 Six branches in

Europe in 2004

Sales & marketing: 35 employees (vs 23 in 2003)

Present in over 10 countries

In Canada since late 2003

A strong and aggressive Sales & Marketing force


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2003 2004 (e)Before exchange rate

2004 (e)After exchange rate

2004 target: 5% growth to €56.7M (at constant exchange rate)

Backlog

New business (licences / ASP)

Pipeline no.: 100+ Pipeline value: €35M+ Shortlist no.: 16 Shortlist value: €8.3M+

Focus on New business (after exch. rate)

52.8 M€

48.7 M€

8.8 M€

57.5 M€

5%

54.8 M€


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Contents








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Idée 2 Consumer creditConsumer creditCar financeCar finance

Syndicated loansSyndicated loansEquipment

financeEquipment

finance

Front Office

Back Office

Middle Office

Leasing & Credit Finance: one offering for all types of finance


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Leasing & Credit Finance: a market with high-growth capacity

Consumer Finance 29%Lloyd’s TSB / Sofinco / GE Capital /

Cetelem / Groupo Santander

Vehicle Finance & fleet 40 %LeasePlan / Arval / ALD / PSA / Toyota /

BMW

Equipment finance 20%ING / KBC / Deutsche Leasing /De Lage Landen / Franfinance

/ LombardOthers 11%

European market breakdown

Europe: 100 million credit loans

Linedata Services' market share: 5%

Others 11%


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Leasing & Credit Finance: competitive environment

Specialised modules Global coverage

National

2 countries

Morethan 5

countriesLynx

PancreditAFBIndra

Fernbach

ZEDA

IDS Fimasys

Vega

Leasman (Delta)

BynxSofico

Apak

CHP

CQ SystemsOrfi

EasySoft

TrebiOysterBay

Subito


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Extend our product offeringStrengthen and maintain our technological advantage Expand our ASP model

Rationalise costsOffshore approach

Continue our growth in EuropeSupport our major clients in their pan-European development (PSA, Toyota and ING Lease)Strengthen commercial partnerships (Accenture)

Act as a unifying hub in Europe Expand market niches not occupied by EkipStep up and develop in key countries (UK, Germany)

Leasing & Credit Finance: maintain strong growth through a 4-part strategy


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Leasing & Credit Finance: a European development plan

Established player Leader 2003 launch

European development

Leasing Car Finance

Cons. credit

France

Rest of Europe

LDS offering

Germany

UK

LDS sales

North Africa


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Savings & Insurance: coverage adapted to legislative changes in France

PEE, PEI (profit sharing)

Art. 39, 82, 83,IFC, Madelin,

Insurance for life, death, pensions, PEP

Employee Savings

RetirementSavings

LifeInsurance

PERCO PERP

TRADITIONAL SCHEMES

NEW SCHEMES


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Savings & Insurance: competitive European market

Functionnal coverage

Employee Savings

Retirement Savings & Life Insurance

FIMASYSEDS

CSCMALBOROUGH

SHERWOODPROFUND

FJACOR AG

EXTELEXTEL

Strong functionalities


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Employee Savings: promoting growth in a lasting business

Supporting the key market players: • Approx. 40 employee savings management corporate

clients, including 7 of the top 10

Take advantage of increased investments in the wake of the Fillon Act

Implement "Employee Shareholding" programmes through major accounts

Develop new services


35

Life Insurance: capitalise on a thriving business

The main savings vehicle in France and Europe

50% of IT solutions in France still bespoke

Increasing number of insurance companies using software solutions

Master A: a "best of breed" product that perfectly meets the regulations and needs of a rapidly changing market

Gradually internationalise our solution


36

Retirement Savings: seize opportunities provided by the Fillon Act

Strong client demand to develop Fillon Act products

PERCO: a natural extension of employee savings already offered by management companies

PERP: installation of modules for insurance and private insurance companies

1st contract: la France Mutualiste

Increase visibility across the world


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Client reference

Prospect clients

Distribution Supports

Trade order

manage-ment

Commission management

Payment method

management

Simulation tool

ClientInternet

DistributorExtranet

Publication

Invoicing

Call Center

MinitelAudiotel

Marketingtool

Client cost

analysisAnnuities

Common references

Common associated services

Common operational

modules

Specialised management

engines

New offer: a view of savings plans in France

Employee Savings engine

Retirement Savings engine

Life Insurance engine


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A new growth cycle

Step n° 1 Step n° 2

2003€100.3M

2000€53.7M

2006€200M

(objective)


40

2004 perspectives

Organic growth : + 5 %

External growth :Numerous accounts being studied in all fields of activityAn economic situation favorable to mergersSignificant own cash flow resources

Maintain current profit levels

annual_2003.ppt

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