Press Release

The company’s return on equity was 22%.

- IT services and methodology consultancy, through Sys-com and its Omnes services offering aimed at IT managers;

- Organisation and contractorship management consultancy through Coorg and its Artes services offering directed at operating managers,

- ERP and strategic alignment consultancy with 3D Harmony’s Strates services offering targeted at corporate executive managers.

This offering is aimed at helping our clients incorporate emerging technologies and at facilitating multi-channel distribution. Revenues in the emerging technologies business continued growing at a very fast pace in the first half-year. At the end of December 2000, this business accounted for 8% of total revenues (versus 4.2% in the previous year). Although demand has ebbed slightly since then, revenues have doubled in this field compared with the previous year. This clearly reflects a fundamental trend and underscores that this business is relatively immune to short-term economic swings.

- The fiscal year of 3D Harmony has been aligned with that of the Group’s other units (year ending 30 June) and the company’s lease has been assumed by Sys-com.

- The Management Board decided to split Sys-com into two companies: the holding company, which is listed, and an operating company providing IT and methodology consultancy services.

- Recruitment is temporarily being suspended in the second half until markets recover,

- Expenses are being cut drastically, especially outsourcing costs,

• Our customers belong to the financial industry, and we are positioned in a high-growth niche that is experiencing a great deal of restructuring. Despite the current economic climate, the medium and long-term outlook remains bright. The market’s growth appears sustainable over the coming years, although the pace will probably be more moderate than in the three past years.
• The breakdown of revenues is well-balanced: half is derived from IT services/development, and the other half from high added-value consulting services.
• Thanks to the acquisition of 3D Harmony, we now have a comprehensive and seamless offering.
• Our revenues are very recurrent, 97% of our clients have renewed their contracts with us, and our customer base is well diversified.
• Our first entrant position has helped Sys-com establish a strong reputation in the high-growth third-party applications maintenance market. These contracts, which last from 2 to 3 years on average, are recurrent and smooth revenue streams over the cycle (32% of total FY2000/01 revenues).
• Our net cash position stands at € 5 m.
• We have a historical culture of promoting profitability and efficiency.

Against this favourable medium-term backdrop, and although the environment will be more volatile in the near term, Sys-com’s goal is to continue expanding and to become a leading name in the field of IT services to the financial industry. We have identified two major priorities for the near-term future :

• Maintaining a rate of profitable organic growth that is three to five points above the market’s growth rate.
• After having commissioned a report from a specialised research firm on the supply of and demand for consulting and IT services throughout Europe, Sys-com has short-listed Spain and the UK for its first forays outside France. Furthermore, Sys-com remains on the look out for any external growth opportunities in France.

In the light of all these factors, Sys-com has made conservative forecasts. For fiscal 2001/02, we expect consolidated turnover (IASC standards) of € 40.4 m, up 18% compared with FY2000/01.