Valtech unveils its "Rocket" strategic plan (AcT)

Financial targets 2017: 240 M€ to 260 M€ of revenue at constant exchange rates & 11% to 12% adjusted EBITDA margin

Paris (France) 21 October 2014 – Valtech SA [Euronext Paris: FR0011505163 - LTE], first independent European agency in digital and technology marketing, unveiled the financial objectives and means of action of its 2015 - 2017 strategic plan, baptised "Rocket". Rocket aims to enable Valtech to acquire leadership in digital and technology marketing and to become one of the TOP 5 global digital agencies.

In recent years, Valtech has profoundly changed: from an IT services company, the group has become the first independent European "full service" agency of technology marketing, with strong expertise in strategy, multichannel marketing and e-commerce digital platforms while working in an agile way and delivering projects on a global scale. Valtech now begins the third phase of its business plan and intends to accelerate its development to become one of the top five agencies of digital and technology marketing globally, in terms of size and customer base, geographic coverage, services portfolio, innovation and profitability.

Through Rocket, Valtech aims by 2017 to :

• become one of the TOP 5 global digital and technology marketing agencies;
• achieve a turnover at constant exchange rates of between € 240 and € 260 million, combining double-digit organic growth with targeted acquisitions ;
• increase its adjusted EBITDA⁽¹⁾ margin to a range of between 11% and 12% of its turnover.

Three key strategic themes underpin this new phase of development:

• a targeted acquisition plan to accelerate the critical mass and threshold effects ;
• increased internationalization, essential to better serve our global customers ;
• the creation of new offerings in Data and expansion of domain expertise that feed the group's organic growth through building strong strategic partnerships with major accounts identified as the most strategic.

Sebastian Lombardo, Valtech's CEO, said:

« The major disruptions caused by the speed of technological change and the evolution of consumer behaviour offer us a fantastic development opportunity. Whether it relates to rethinking an organization in an agile way, to multi-channel e-commerce or technology marketing, we were able to anticipate these changes, build highly relevant service offerings and build teams with multifaceted and unique skills to partner the digital transformation of our clients. With the Rocket plan, our intention is to significantly accelerate the group's development, by investing to remain at the forefront of digital technologies and their uses, with double-digit growth targets and a significant increase in profitability. »
 

To implement Rocket, Valtech announced a capital increase of € 27 million reserved for SiegCo, majority shareholder of Valtech with 56.6% of the share capital, who has decided to support this new phase of development. This capital increase without preferential subscription rights, carried out at a price of 4.30 € per share, equal to the average of the share price over 3 and 6 months prior to the announcement, received the FMA's approval No. 14-560 on October 17, 2014, and will therefore be subject to the approval of the company's shareholders at an extraordinary general meeting to be held on October 22, 2014 at Valtech headquarters.

FINANCIAL CALENDAR

• Extraordinary general meeting of Valtech shareholders, on Wednesday, October 22, 2014 at 10 am at Valtech HQ.
• Publication of the 2014 annual revenues, on Wednesday, Jan. 28, 2015, after market close.

ABOUT VALTECH
Valtech [Euronext Paris: FR0011505163 - LTE] is a digital marketing agency, pioneer in technology with a presence in 9 countries (France, UK, Germany, Sweden, Denmark, United States, India, Australia and Singapour) and approximately 1500 employees. As a "digital full service" player, Valtech knows how to add value to its customers at all stages of a digital project: strategy consulting, design, graphic design, development and optimization of business-critical digital platforms. Thanks to its recognized commitment to innovation and agility, Valtech helps brands to develop and grow their business with web technologies while optimizing time to market and return on investment (ROI).

(1) Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) excludes exceptional items and expenses of the redeemable warrants plan (IFRS 2).