Presentation SFAF - annual accounts 2018March 22, 2019

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New growth engines

• Netgem, connected home expert since its creation

• 2018: key year for usage behavioural changes and market structure

• Our strategy for growth step

• Outlook 2019-2020

• Results 2018

New growth engines

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netgem, connected home expert since its creation

Our Mission

connect each and every home to the digital world (

• The first TV Box was launched 15 years ago in France - 2004

• Near 9 millions connected homes through digital services via a Netgem Box across 20 countries

• Certified by Hollywood and the major European publishers

• More than €1 billion in cumulated revenue

• More than €100 millions returned to shareholders

• No debt

Netgem, connected home expert since its creation in 1996

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2004

2019

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2018: key year for usage behavioural changes and market structure

• New consumer habits are rising, with new connected devices and Fibre to the home (FTTH) changing everything

• The tablet, mobile phones and laptops overtaking TV for "millenials", and streaming habits lead the consumption.

• Connected speakers, the new multi-services way at the heart of the home?

• Fibre to the home and its strengths are creating new services opportunities: a challenge for operators to convince their already equipped users to pay more.

These new services will be at the heart of offers for providers.

L’émergence de nouveaux modes de consommation, de nouveaux objets connectés, et la Fibre qui change la donne

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Operators will become more and more multi-services oriented with offers becoming more fragmented

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The end of a unique offer for all

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A Political will in France

France's Broadband Plan identifies "non-dense" areas, known as 'Réseaux d’Initiative Publique' or Public Initiative Networks, which cover 40% of French households; In these areas, the operators which provide connected equipments and services are different from the infrastructure operators, which install the fibre to the home

17 million households planned in the "Réseaux d’Initiative Publique" zone, opening competition; 1 million plugs installed in 2018 As and when connected areas are set-up, each person can choose his own operator; Videofutur, operator of which Netgem is co-shareholder with the 'Caisse des Dépôts et Océinde' is today leader of this emerging market in France

- Abroad, similar business models exist, eg: the FTTH providers in the UK

A l’étranger, des modèles comparables

Broadband for all: a more open market, which enriches competition through services.

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Our strategy for this new stage of growth

Our 10 years plan

Connecting millions of homes, in France and elsewhere, to the new services made possible by ultra-fast broadband and fibre.

How ? By becoming the number one partner of multi-services operators, offering them an open and secure platform of Connected Equipment and Operated Services for the connected home.

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A multi-screen cloud platformsecure and certified for streaming

video on the fiberA controlled investment thanks to the expertise of our

resources in the field of TV experiences and the management of usage data, and the content security

approved by the studios.

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Our multiservice connected speaker

An investment that demonstrates the successful integration of the expertise of a startup supported by our industrial experience in terms of quality, competitiveness and financing.

The 2019 news on the Netgem platform

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2019 - 2020

Perspectives

Reinforcement within Vitis through the contribution of the activity “TV Cloud”.• Continue co-investment with Caisse des Dépôts and Océinde to

capture the growth of the France High-Speed Plan

• Increase Vitis' value by giving it the means to launch new differentiating multi-screen TV offerings in the fiber market.

ZTE Partnership

• Have a privileged partner to strengthen the supply of connectedequipment (new connectivity products, financing services).

• Develop trade operators in common in the Fiber market.

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Recent projects and how they fit amongst this new strategy

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2019 -2020 Perspectives

Support the Fiber / 4K migration of our current customers and the relevance of new business models.

Demonstrate the first commercial results around our multiservice connected speakers.

Extend the 'Connected devices' offer with the ZTE partnership

Strong growth in France on Videofutur and commercial launch of a new offer on CloudTV platform. Target € 30 million in 2021

Growth in the UK through the FTTH operators & distributors strong partnerships.

Assessment of opportunities outside UK.

Explore opportunities beyond entertainment

Based on a healthy balance sheet and a proven self-financing capacity, the Group reserves the right to use various means to accelerate its growth:

Strategic partnership similar to to expand the offer and develop the business

Acquisition of holdingsor controls in startups (as for the development of the soundbox) to surround itself with expertise at at attractive costs.

Joint VentureV similar to Vitis for the FTTH market in France, ...

Call to shareholders as in the 2018 dividend which proposes a payment option in action.

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ow will we fund this new strategy?

It is the growth in net income and / or service income that will be the relevant indicator of growth in future activity.

The “ net income ” (turnover less hardware cost) is the total of the margin from the hardware sales plus all revenue from services and use of equipment. It provides a relevant indicator of the contribution of the various "products" sold by the Group within its consolidated scope.

Revenue from the unconsolidated scope (Vitis) is made almost exclusively of service sales, and is therefore similar in nature to the net income of the consolidated perimeter.

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Two KPIs to follow our progress

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2018 Results

• Application of IFRS, accounting principles consistent with those of 2017

• Audit finalized, accounts validated by the council of 21 March 2019

• Only one operational sector

• Vitis accounted for by the equity method

• IFRS 5 for bringing the platform to Vitis

Accounting principles 2018

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Consolidated results

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2017 2018 Var 18/1761,8 41,8 -32%25,2 19,6 -23%

Data in millions of euros TurnoverNet revenueGross margin 24,6 18,5 -25%

S&M (8,8) (7,2) -18%R&D (5,9) (6,2) 6%G&A (3,7) (2,8) -24%

(18,3) (16,2) -11%

6,6 2,7 -59%

6,3 2,3 -63%0,8 2,1 176%7,0 4,4 -37%

0,2 (0,9)(2,0) (2,8)(0,6) (0,6)

4,7 0,2(0,3) 0,1

Operational expenditure

Ebitda

Current operating income Other operating income Operating profit

Financial bottom linePut in equivalenceTaxesNet profit attributable to the OCI group Overall net income 4,4 0,3

5/9/2016 20Netgem

Consolidated results12/31/2018 12/31/2017 var.

4,3 5,8 -1,50,3 0,7 -0,42,4 4,9 -2,50,7 2,6 -1,9

4,1 4,5 -0,5

11,7 18,5 -6,9

0,8 0,4 0,510,2 16,4 -6,2

5,2 6,3 -1,17,1 7,6 -0,5

11,0 10,2 0,7

34,3 40,9 -6,6

2,0 0,0 2,0

M€ - consolidated IFRS

Deviations acquisitionProperty, plant and equipments Investment in associates

Non-current financial assetsDeferred tax assetsTotal non-current assets

StocksCustomersOther current assetsCurrent financial assetsCash and cash equivalents

Total current assets

Assets to be sold

TOTAL ASSETS 48,0 59,5 -11,5

12/31/2018 12/31/2017 var.

24,0 27,7 -3,70,2 0,2 -0,10,3 2,9 -2,60,5 3,1 -2,6

7,2 3,0 4,20,1 1,9 -1,8

12,0 18,4 -6,44,0 5,3 -1,3

23,3 28,6 -5,4

0,2 0,0 0,2

M€ - consolidé IFRS

EquityEmployee benefitsNon-current financial liabilities Total non-current liabilities

Current financial liabilities Provisions - Current share Suppliers and related accounts Other current liabilitiesTotal current liabilities

Liabilities held for sale

TOTAL LIABILITIES 48,0 59,5 -11,5

Consolidated cash flows

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2018 2017

1,4 14,02,8 6,40,1 - 0,4

- 1,5 8,0

3,2 -1,5

4,6 12,5

- 3,9 - 35,1

M€ - consolidated IFRS

Cash flow related to activity (A)CIF before tax paymentTax paidDecrease (increase) of the WCR

Investment cash flow (B)

Operating cash flow (A + B))

Cash flow related to financing

Net cash flow 0,7 - 22,6

Vitis (non consolidé, comptes non arrêtés)

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2018 2017 Variation10.4 5.6 +86%

M€Turnover Net income -5.5 -3.4 -62%

M€ 31/12/2018 31/12/2017Gross cash 5.1 5.3

• The Board proposes to maintain the dividend at a level of 10c / share.

• A stock option will be offered (10% discount)

• The founding families will take payment in shares.

2018 Dividend

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Shareholding

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Capital DDV net22% 32%

8% 13%10% 8%

7% 6%5% 5%4% 5%9% 0%

35% 30%

Famille HaddadFamille GuillauminMousse partnersFidelity investmentsEximiumEmployees and ExecutivesSelf-owned Floating Total 100% 100%