Devoteam: €339 million of revenues over the first 9 months of 2013

Regulatory News:

Devoteam (Paris:DVT):

(1) at constant rates and perimeter

Devoteam (NYSE Euronext Paris: DVT) reported €101.8 million in revenues over the third quarter of 2013, a -1.7% change over the same quarter last year on a like-for-like basis. The improved trend on the growth rate, compared to that of the first six months, came from a higher number of working days and an increase in utilization rate.

The group kept deploying its strategic plan and refocusing its activities on its core geographies and markets. In this perspective, Devoteam divested its Russian affiliate, Teligent OOO, to New Frontier Innovation GmbH. It also created a new "Chief Operating Officer” (COO) position aiming to speed up the set-up of the "Eagle” operational model. Sebastien Chevrel, former Executive Vice President in charge of the "Western Europe” region, assumed the role. His principal mission is to replicate the success he has had deploying "Eagle” in his allocated region in the rest of the group.

Comments on business activity in the third quarter by region

(1) at constant rates and perimeter

The region "Western Europe” includes Belgium, Luxembourg and the Expertise activity in France. With around €26 million in revenues, it makes up 25% of the Group’s total revenues. On a like-for-like basis, the region confirmed its good performance with a 2.8% improvement over last year’s third quarter.

The "Mediterranean area”, composed of the France Solutions & Consulting entities, as well as the activities in North Africa, recorded a €16.3 million top line in the third quarter of 2013, €1.4 million less than last year. A return to good commercial dynamics in North Africa allowed for a lesser drop than that of the first semester 2013.

The "Northern Europe” region, incurred a 13% drop like-for-like, showing a slight improvement over the performance of the first half-year. Since the beginning of the year, the region is suffering from the closing of its biggest client’s R&D centre in Norway and a drop in license revenues – partially explained by the "SaaS” market trend.

The "Central Europe” region comprised of Germany, Switzerland, Poland, Austria and the Czech Republic recorded an 11.4% like for like drop in revenues compared to the third quarter of 2012. The stabilization of the business in the Telecom sector in Germany, along with the signing of two good projects relating to the Network Transformation and Cloud Transformation offers, hint for improvement in this country in the coming quarters. Conversely, the commercial activity in Poland and Switzerland is struggling to pick up.

The "Middle East & Turkey” region shed 7.6% in revenues compared to the third quarter of 2012 on a like-for-like basis, in line with the trend prevailing over the first six months of the year.

Revenues in the "Single entities” (Spain, Italy and the Netherlands), amounted to €10.6 million, a 14.5% drop from the same period last year. Italy and the Netherlands experienced difficulties caused by lower volumes of business with their Telecom and Financial services clients.

The segment "others”, which is composed of the "venture” entities and unallocated overheads, kept the good dynamics of the first half year.

The effect of divested entities is reflected in the "Divestments” segment. It now includes the revenues of Teligent OOO in Russia, which left the consolidation perimeter as of October 1^st, 2013. The change in the composition of this segment is detailed in the appendices, to allow for better comparison with previous quarters.

Developments in the workforce and utilization rate

On September 30^th, 2013, Devoteam counted 3 915 employees against 4 664 at the end of 2012. This change was mainly due to the divested entities. The ratio of billable staff versus total staff showed an improvement over the third quarter of 2013 and stood at 85.5% on September 30^th, 2013.

Excluding Divestments, utilization rate excluding holidays stood at 82.5% in the third quarter of 2013, compared to 82.4% during the same period in 2012 and on the same perimeter.

2013 prospects

Devoteam confirmed its 2013 targets of maintaining its operating margin rate at the level of 2012 and improving its net income. The full year revenues are expected to be around €450 million.

Financial situation and shareholder remuneration

During the third quarter of 2013, Devoteam repurchased €2.4 million worth of its own shares and paid €0.9 million in dividends.

The financial situation remained healthy. On the 30^th of September 2013, the Group showed a cash position in excess of its financial debt position.

As announced on October 16th, Devoteam will launch a share repurchase tender offer for 1.9 million of its own shares, a little less than 20% of the company’s capital, at a price of €13.50 per share. The repurchased shares are to be cancelled.

In this framework, Paper Audit was appointed as independent expert with the task of providing a fairness opinion. The project will later be submitted to the French Market Authority ("AMF”) for authorization before making the subject of an extraordinary shareholders meeting scheduled for the 19th of December 2013.

Financial calendar

Extraordinary shareholders’ meeting voting on the share repurchase tender offer: December 19^th, 2013

2013 full year results: March 4^th, 2014 - after trading hours.

Appendix

Pro forma

About Devoteam

Devoteam (ISIN: FR 0000073793, Reuters: DVTM.PA, Bloomberg: DEVO FP) is an IT consulting group created in 1995, a specialized ICT Transformation partner of its clients. Combining consulting know-how and technical expertise enables Devoteam to provide its customers with independent advice, delivering innovative and industrialized end-to-end solutions.

In 2012, Devoteam achieved revenues of €515 million and an operating margin of 3.5%. The Group has a workforce of 3 915 employees in 23 countries across Europe, North Africa and Middle East.

www.devoteam.com