aufeminin: Fine Performances in H1 2016: Significant Growth in Activity, Improvement in the EBITDA Margin and Increase in the Cash Position

Regulatory News:

Groupe aufeminin (Paris:FEM) (ISIN: FR0004042083, Ticker: FEM), 1^st creator of communities, announces its results for the first half of 2016 to the end of June.

The aufeminin Board of Directors met on 7 September to approve the Group’s first-half results. Over the first six months of 2016, the Group continues to report highly satisfactory performances on the French market, whilst abroad the development of My Little Paris, the integration of Livingly Media in the United States, and the insourcing of advertising operations in Italy continued successfully. This significant growth in activity allowed the Group to improve its operating profitability and its net cash position.

Marie-Laure Sauty de Chalon, CEO of aufeminin, says: "Despite the uncertain economic situation in France and across Europe, Groupe aufeminin has successfully achieved this first stage of the transformation of its business model that will enable it to maintain a high level of profitability in 2016.”

Financial summary – published data: consolidation of Livingly Media from 1 January in 2016 vs. 1 March in 2015 (post acquisition) and reclassification of Smart AdServer, divested on 30 April 2015, as "net income from divested activities” in 2015. Following this divestment, the aufeminin group is focusing on publishing and e-commerce, i.e. the monetisation of the communities associated with the Group’s various brands through the sale of advertising space and paying content on various mediums.

(1) EBITDA results from operating income minus expenses, non-recurring operating income, amortisation and provisions.
(2) In 2015, non-recurring operating income of €26.7 million associated with the divestment of Smart AdServer was recorded.

Significant growth in activity

In H1 2016, the aufeminin group recorded revenue of €51.3m, up 22% compared with the 1^st half of 2015 including the scope effect of Livingly Media, acquired on 1 March 2015.

On the French market, the aufeminin group continued to record good performances in an environment that remains difficult, albeit with a slight improvement in Q2 2016.

International activity continued to record buoyant growth: +43% to €26.6m over the 1^st half:

• in the United States, Livingly Media’s strategic repositioning resulted in further substantial growth in activity;
• on the other international markets, the Q1 trends globally continued, with further positive performances notably in Italy and Japan.

Improvement in the EBITDA margin: close control of operating expenses and the strategic repositioning of Livingly Media on programming are both bearing fruit

The 19% increase in operating expenses, +€6.2m to €39m, was associated with the growth in activity, the investments carried out over the 1^st half and the inclusion of Livingly Media over all 6 months of the 1^st half of 2016 versus 4 months of the 1^st half of 2015, following its acquisition on 1 March 2015.

Hence, he aufeminin group recorded a significant improvement in its profitability, with EBITDA increasing by 31% to €12.4m, compared with €9.5m in the 1^st half of 2015. The EBITDA margin was 24.3%, up by more than 170 bp compared with the same period of 2015.

Operating profit was €9.5m, vs. €31.3m in H1 2015, the latter including €26.7m of non-current operating income associated with the divestment of Smart AdServer. Once, in particular, tax of €3.0m is taken into account, the Group recorded consolidated profit of €6.4m and attributable net profit of €5.9m in the 1^st half of 2016.

Increase in the cash position

On the basis of these results and lower working capital requirements of €0.3m, operating cash flow was €8.4m, vs. €4.9m in the 1^st half of 2015. Given, in particular, tangible and intangible investments of €1.6m, net cash flow was €5.9m. The Group thus had a cash position of €69m at end-June 2016, an improvement of €8.2m compared with end-June 2015 and €5.9m compared with end-December 2015.

Outlook

Over the second half of the year, the Group will continue the transformation of its business model with the development of social audiences and the diversification of its revenue.

Next publication: unaudited 3^rd quarter revenue and operating profit, on 20 October, 2016.

About aufeminin http://corporate.aufeminin.com

1^st creator of communities, the aufeminin group provides an editorial and community-based offer covering all the most popular topics amongst women: Fashion, Baby, Beauty, Shopping, Cooking, News, Entertainment, etc.

With media brands such as aufeminin, Marmiton, My Little Paris, Merci Alfred, Gifted Agency, Onmeda, Zimbio.com, Livingly.com and Stylebistro.com, the Group is present in more than 20 countries in Europe, North Africa, North America and Latin America. Leader on the desktop market with a global audience of 42 million visitors a month, the aufeminin group’s presence is growing on the mobile market, with 73 million visitors, and tablet market, with 12 million visitors, and is developing its presence on all other platforms, including video, print and social networks⁽¹⁾.

The aufeminin group, which is 79.3% owned by the Axel Springer group, is listed on compartment B of Euronext Paris (ISIN: FR0004042083, Ticker: FEM). In 2015, with 370 staff, the Group recorded revenue of €93 million and an EBITDA margin of 25%.

(1) Google Analytics, aufeminin group, no double counting, August 2016

Appendices

I. CONSOLIDATED INCOME STATEMENT (€ thousands)

(1) EBITDA results from operating income minus expenses, non-recurring operating income, amortisation and provisions.
(2) Given the divestment of Smart AdServer at end-April 2015, SmartAdServer’s 2015 results have been reclassified as "Net income from divested activities”.

II. CONSOLIDATED BALANCE SHEET AT 30 JUNE, 2016 (€ thousands)

III. CONSOLIDATED CASH FLOW STATEMENT (€ thousands)

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