Group Avenir Telecom - Presentation of Annual Consolidated Results 2010-2011

1. Full-year results 2010-2011
15 June 2011

2. Contents
Overview and highlights
Full-year consolidated results
Outlook
Appendices
Full-year results 2010-2011 2

3. Key distributor of telecom products and services
150
France
• Present in 12 European
countries UK
www.internity.fr
• Partner of Europe’s www.avenir-telecom.co.uk 110
leading telecom Romania
manufacturers and
operators 66
Portugal
www.internity.ro
• Present across multiple
distribution channels www.ensitel.pt
(retail, web, food
superstores, specialist
superstores,
183 83
convenience stores) Spain Bulgaria
• 2,600 employees
www.internity.es
www.internity.bg
# Number of shops
Full-year results 2010-2011 3

4. Preferred partner of telecom operators and handset
manufacturers
Trend in number of contracts and
Breakdown of revenues by operator
products / services sold1 (in millions)
+5.3% +17.9%
3,00 -7.8% 3.9% 3.0% 2.0% 0.4%
2.64 2.67
2.49 2.51 6.0%
2,50 2.30 2.26 7.5% 37.3%
2,00
18.7%
1,50 -26.5%
21.2%
1,00 0.89
0.66
0,50 Avenir Telecom, partner of:
0,00
Produits
Multimedia Contrats
Operator Terminaux
Mobile Accessoires
Accessories
multimédia
products opérateurs et
contracts mobiles
handsets
autres services
and other
services
Exercice 2009-10
Full year 2009-10 Exercice 2010-11
Full year 2010-11 and more….
1. See glossary
Full-year results 2010-2011 4

5. Highly diversified presence across all distribution
channels
Breakdown of Group revenues by • Promotion of new ranges of accessories,
sales channel telephony and multimedia products
• New customer acquisition
1.6% 0.8%
• Capture of new customer segments
19.0%
45.1%
10.0%
Avenir Telecom, partner of companies
such as:
23.5%
Réseau propre
Own network Revendeurs
Resellers
Affiliés
Affiliates Grands comptes
Major accounts
Web
Web BtoB
BtoB
Full-year results 2010-2011 5

6. 2010-2011 financial year marked by return
to profitability
€ millions FY 2010-2011 FY 2009-2010 Change %
Revenues 564.2 570.9 -1.2%
Gross margin 135.1 135.1 -0.0%
As % of revenues 23.9% 23.7%
Operating income 13.1 -0.5 na
Net income 6.1 (7.3) na
Cash flow 11.9 6.4 x1.9
Shareholders' equity 64.7 62.1 +4.2%
Net financial debt 36.9 33.4 +10.5%
• Return to profitability in both of our business segments (direct and indirect)
• Stabilisation of revenues due to particularly marked recovery in France in indirect
distribution since the summer of 2010
• Stabilisation of gross margin due to growth in sales of licensed branded and private label
accessories
• Positive effects of restructuring, particularly closure of underperforming sales outlets
• Good control of cash position due to cash flow generation
Full-year results 2010-2011 6

7. Development of licence agreement with Energizer,
the global leader in batteries
Key licence agreement:
• Products designed and developed by Avenir Telecom’s R&D department
• Plants qualified for manufacture of products
• Distribution synergies in EMEA region
Essential products for mobile phones and multimedia devices:
• Chargers for all Apple, Samsung, Blackberry, etc. mobile handsets
• Connecting equipment and multimedia cables
• Powerline adapters
Full-year results 2010-2011 7

8. Many new product launches:
OXO Platinum, lifestyle products
lifestyle
products
Full-year results 2010-2011 8

9. Many new product launches (continued)
innovative patented
products
from the creator of
Hello Kitty
the HIT in Parisian chic
fashion
Spanish passion
Full-year results 2010-2011 9

10. Various initiatives to support the growth of the
Group
Strengthening partnerships with telecom operators:
• Remote management for accessory ranges of the largest European operators
Expanding our geographic presence into new territories:
• European partnership with FNAC: France, Italy, Switzerland, Portugal, Spain and
Belgium
• Launching operations in Turkey, Egypt and Tunisia
• Developing operations throughout the Balkans: Greece, Croatia, Serbia, etc.
Optimising our logistics organisation:
• Strengthening sourcing in Asia
• Adapting information system to all distribution channels
20 years of international know-how
Full-year results 2010-2011 10

11. Retail: active management of owned store base
With 592 stores, strong positions among specialist mobile
phone chains
Continued rationalisation of store base:
• Opening of 17 new sales outlets
• Closure of 45 unprofitable sales outlets
Asserting our positioning in digital convergence:
• As demonstrated by large market share in sales of 3G
dongles
Repositioning in prime sites in shopping malls and city
centres
63% prime sites
Full-year results 2010-2011 11

12. Contents
Overview and highlights
Full-year consolidated results
Outlook
Appendices
Full-year results 2010-2011 12

13. Recovery buoyed by indirect distribution, with
revenue growth in fourth quarter
Quarterly trend in 2010-2011 • Strong recovery in indirect
revenues by business segment
distribution with renewal and
30% expansion of product portfolio
25.5%
20%
11.8%
16.3%
• Slower rise in direct distribution
10% due to shift in consumption
6.6% 5.2% towards prepaid offerings and low-
0%
-4.0%
cost plans and the store base effect
-0.8%
-12.5%
-10% -11.5%
-10.6%
-14.2%
-16.1%
-20%
1T11
Q111 2T11
Q211 3T11
Q311 4T11
Q411
Indirect distribution 1 1
Distribution indirecte Direct distribution 1
Distribution directe1
Total revenues total
Chiffre d'affaires
1. See glossary
Full-year results 2010-2011 13

14. Revenues by geographic region boosted
by France
Full year Full year
€ millions Change %
2010-2011 2009-2010
France 329.4 300.2 +9.7%
Iberian peninsula 175.1 195.7 -10.5%
Western Europe 1 33.5 33.5 0.0%
Eastern Europe 2 26.3 41.5 -36.8%
Full-year total 564.2 570.9 -1.2%
At constant exchange rate 563.0 570.9 -1.3%
• Strong revenue growth in France due to successful repositioning of indirect distribution
• Recovery in revenues in Iberian peninsula slowed by fall in prices of operator packs in Spain
and lower footfall in shopping malls in Portugal
• Stabilisation of revenues in Western Europe due to growth in partnerships with UK
operators
1. United Kingdom, Germany, Italy
2. Romania, Bulgaria, Balkans
Full-year results 2010-2011 14

15. Spectacular turnaround in profitability
Full year Full year
€ millions %
2010-2011 2009-2010
Revenues 564.2 570.9 -1.2%
Cost of products and services sold (429.1) (435.8) -1.5%
Gross margin 135.1 135.1 -0.0%
% gross margin 23.9% 23.7%
Transport and logistics expenses (6.9) (6.5) +6.2%
Costs of direct distribution networks (76.7) (85.2) -10.0%
Commercial expenses (9.2) (9.9) -7.1%
Administrative expenses (28.1) (33.1) -15.1%
Impairment of non-current assets (0.4) (1.9) -78.9%
Other items (0.7) 1.1 na
Operating income 13.1 (0.5) na
Favourable trend in product mix and tight control
of expenses
Full-year results 2010-2011 15

16. Rebound in operating income driven by both
business segments
Trend in consolidated operating Trend in operating income by business
income (in € millions) segment (in € millions)
25 14,0
20.0 12,0
20
10,0
15 8.7
13.1 8,0
13.1
10 6,0
4,0
5
1.7 2,0 4.4
0
0,0
-0.5
-0.5
-5 -2,0
31/03/2008 31/03/2009 31/03/2010 31/03/2011 Operating Distribution Distribution Operating
Résultat Direct Indirect Résultat
opérationnel directe 2011 distribution opérationnel
income Distribution indirecte income
2010 2011 2011 2011
2011
Full-year results 2010-2011 16

17. Net income in excess of €6 million
Full year Full year
€ millions
2010-2011 2009-2010
Revenues 564.2 570.9
Gross margin 135.1 135.1
% gross margin 23.9% 23.7%
Operating expenses (122.0) (135.6)
Operating income 13.1 (0.5)
% operating margin 2.3% -0.1%
Net financial expense (2.5) (3.1)
Profit tax (4.5) (4.5)
Net income from continuing operations 6.1 (8.1)
Net income from discontinued operations 0.0 0.8
Net income 6.1 (7.3)
Control of financial expenses
Full-year results 2010-2011 17

18. Increase in cash flow
Trend in cash flow (in € millions)
25
20.8
20
16.3
15 X1.9
11.9
10
6.4
5
0
31/03/2008 31/03/2009 31/03/2010 31/03/2011
Doubling of cash flow provided by continuing operations
Full-year results 2010-2011 18

19. Debt level under control
Covenant on net debt/shareholders'
Covenant on net debt/EBITDA
equity
14% 22% 46% 43%
3,0 1,2
2.50 2.50 1.00 1.00
2,5 1,0
2.14
1.96
2,0 0,8
0,6 0.57
1,5 0.54
1,0 0,4
0,5 0,2
0,0 0,0
31/03/2010 31/03/2011 31/03/2010 31/03/2011
Maximum autorisé
Authorised Dette financière nette / EBITDA
Net financial debt / EBITDA Maximum autorisé
Authorised Dettefinancial debt / shareholders’
Net financière nette / capitaux propres
maximum maximum equity
Improved headroom under bank covenants
Full-year results 2010-2011 19

20. Solid financial position
Simplified balance sheet (in € millions)
Shareholders'
equity
Non-current 81.4 64.7
assets Net financial
36.9
debt
Current assets 158.9
138.6
Other liabilities
Assets
Actif Liabilities
Passif
Market value of assets exceeds their book value
Full-year results 2010-2011 20

21. Contents
Overview and highlights
Full-year consolidated results
Outlook
Appendices
Full-year results 2010-2011 21

22. A market on the move
• Resumption of market growth in mid-2010, which should be confirmed in 2011-
2012 and in the longer term should be sustained by equipment upgrades with
the advent of 4G and very high bit-rate uses
• Operators using specialist players for a significant part of their distribution to
reach all customer segments
o 30% of their sales are through third-party distribution channels 1
• Strong tendency among major brands to exploit market growth from digital
convergence through brand licences for accessories
o As in other sectors (optical services, perfumery, etc.)
Market driven by digital convergence based on mobile
devices
1 Source: Arthur D. Little, 2009
Full-year results 2010-2011 22

23. Strengths on which to base an offensive strategy
Main strengths Development strategy
• Expertise in logistics and leading-edge ERP • Strengthening the Group’s position
tools among operators and manufacturers
• Structured presence in the main European • Developing the Group’s geographic
countries presence in emerging markets
• Know-how in communication, marketing • Enriching and expanding the portfolio of
and the development of point-of-sale licensed or owned brands to take
advertising and promotional tools advantage of the rapid growth of the
market
• R&D ability in development of products
matching image of brands represented
Full-year results 2010-2011 23

24. Contents
Overview and highlights
Full-year consolidated results
Outlook
Appendices
Full-year results 2010-2011 24

25. Income statement
Full year Full year
€ millions
2010-2011 2009-2010
Revenues 564.2 570.9
Gross margin 135.1 135.1
% gross margin 23.9% 23.7%
Operating expenses (122.0) (135.6)
Operating income 13.1 (0.5)
% operating margin 2.3% -0.1%
Net financial expenses (2.5) (3.1)
Profit tax (4.5) (4.5)
Net income from continuing operations 6.1 (8.1)
Net income from discontinued operations 0.0 0.8
Net income 6.1 (7.3)
Full-year results 2010-2011 25

26. Direct distribution
Full year Full year
€ millions %
2010-2011 2009-2010
Revenues 268.0 300.0 -10.7%
Gross margin 103.8 107.7 -3.6%
% gross margin 38.7% 35.9%
Operating expenses (99.4) (109.8) -9.5%
Operating income 4.4 (2.1) na
% operating margin 1.6% -0.7%
Full-year results 2010-2011 26

27. Indirect distribution
Full year Full year
€ millions %
2010-2011 2009-2010
Indirect distribution revenues 296.2 270.8 +9.4%
Gross margin 31.3 27.4 +14.2%
% gross margin 10.6% 10.1%
Operating expenses (22.6) (25.8) -12.4%
Operating income 8.7 1.6 +444%
% operating margin 2.9% 0.6%
Full-year results 2010-2011 27

28. Cash flow statement
31 March 31 March
€ millions
2011 2010
Cash flow from continuing operations 11.9 6.4
Change in operating net assets and liabilities before acquisition effects
(9.2) 6.1
(working capital requirement)
Cash provided by continuing operations 2.7 12.5
Cash provided by (used in) discontinued operations (0.1) 0.6
Cash flow from operating activities 2.6 13.1
Investment flows before acquisitions/disposals of subsidiaries (1.6) (0.9)
Free cash flow from operating activities 1.0 12.2
Flux de trésorerie liés aux activités d’investissement (1.6) (0.9)
Cash used in investing activities (13.8) (7.9)
Impact of exchange rate fluctuations on cash position (0.0) 0.3
Change in cash position (12.8) 4.5
Opening cash position 39.4 34.9
Closing cash position 26.6 39.4
Full-year results 2010-2011 28

29. Simplified balance sheet
31 March 31 March
€ millions
2011 2010
Non-current assets 81.4 88.5
Goodwill 13.3 13.3
Net intangible fixed assets 13.9 14.9
Net tangible fixed assets 21.9 26.3
Other non-current assets 5.6 6.2
Non-current assets held for sale 0.2 1.1
Deferred tax 26.5 26.7
Current assets 184.5 175.1
Net stocks 57.0 46.4
Net trade receivables 78.1 75.7
Other current assets 22.8 13.5
Cash and cash-equivalents 26.6 39.4
Net assets of discontinued operations 1.0 1.1
Total assets 267.0 264.7
Full-year results 2010-2011 29

30. Simplified balance sheet (continued)
31 March 31 March
€ millions
2011 2010
Shareholders' equity 64.7 62.1
Non-current liabilities 24.8 33.7
Financial debts – non-current portion 22.7 30.7
Provisions and other liabilities – non-current portion 0.4 0.4
Derivative financial instruments – non-current portion 0.3 1.5
Deferred tax liabilities 1.4 1.1
Current liabilities 174.9 166.2
Financial debts – current portion 12.3 11.7
Bank overdrafts 28.5 30.5
Provisions – current portion 5.8 8.7
Trade creditors 88.5 68.8
Derivative financial instruments – current portion - 0.0
Tax and social security contributions payable 20.9 24.1
Current tax liability 3.7 6.0
Other current liabilities 15.1 16.5
Liabilities from discontinued operations 2.5 2.7
Total liabilities 267.0 264.7
Full-year results 2010-2011 30

31. Information for investors
Key dates in 2011-2012 1 Actionnariat au 31 mars 2011
First quarter 25 Aug 2011 Treasury stock
Second quarter 15 Nov 2011 0.9% OXO
29.9%
First half 30 Nov 2011
Third quarter 9 Feb 2012 Public 48.4%
Fourth quarter 15 May 2012 20.5%
0.3%
Full-year results 20 June 2012
Jean-Daniel
Managers Beurnier
Stock Market Data As at 31 March 2011
Listing market Euronext Paris
Investors’ contact
Code FR0000066052
Agnès Tixier
Shares in issue 93,270,895 +33 (0)4 88 00 63 21
Capitalisation (€m) 95
atixier@avenir-telecom.fr
1.These dates are provided for information purposes and are liable to change if the Company deems it necessary. Press releases will usually
be distributed after the close of the market.
Full-year results 2010-2011 31

32. Glossary
Indirect distribution: professional distribution through customers in mass
distribution (food superstores, specialist superstores), independent specialist
resellers, affiliates and telecom operators.
Direct distribution: distribution to the general public through the Group’s own
store networks and through Internet sites
Signed contracts: contracts signed on behalf of telecom operators which are
partners of the Avenir Telecom Group
Multimedia equipment: products other than mobile phones, smartphones, i.e. IT
equipment, e-books, MP3 players, tablets, printers, etc.
Adaptateur CPL : used to connect electrical equipment (e.g. TV and broadband
router) using only domestic mains electricity wiring
Full-year results 2010-2011 32

33. Notice
This document contains forward-looking statements. Although the Avenir Telecom Group believes its
expectations are based on reasonable assumptions, these statements are subject to numerous risks and
uncertainties. Important factors that could cause actual results to differ materially from the results
anticipated in the forward-looking statements include, among other things: the effect of competition;
technological developments; the success of the investments of the Avenir Telecom Group in France and
abroad; the effects of the economic situation.
A description of the risks borne by the Avenir Telecom Group appears in the section entitled “Identification
et gestion des principaux facteurs de risque" of the "Document de Référence" of the Avenir Telecom Group
filed with the French financial markets authority (AMF) on 4 June 2010. The forward-looking statements
contained in this document apply only from the date of this document, and the Avenir Telecom Group does
not undertake to update any of these statements to take account of events or circumstances arising after
the date of the said document or to take account of the occurrence of unexpected events.
All the accounting data are presented in audited consolidated form.
Full-year results 2010-2011 33