APRIL : Deteriorating results in the 2nd half. Exceptional items recorded at the end of the fiscal year. Recurring EBIT margin c. 10%

In the second half of the year, the activity and profitability of April group were more affected than expected by some factors anticipated in our press release on sales for the first nine months of 2014.

The second half of 2014 has been strongly impacted due notably to heavier investments and over a longer term than initially forecast - notably in information systems - aimed at preparing for the future, as well as exceptional items, the full extent of which the group was only able to assess in the very last weeks of the year.

Ø  The group expects 2014 pro forma sales to decline by -1% to -2% due to restrictions on the production of new business in individual health insurance for employees since 2013 under the generalisation of group complementary health insurance, as well as poor business performances in South America.

Ø  Current EBIT is expected to decline by -12% to -15%. This decline is attributable mainly to investments that will enable the group to meet the challenges of tomorrow, as well as non-recurring items that occurred during the year while adapting and consolidating our business model in travel insurance and assistance. These investments are likely to continue through 2015.

Ø  Non-currentitems also had a negative impact on our EBIT, which should decline by -18% to ‑21%. In La Reunion, the group has recently proceeded to rescind a business as general agent in order to concentrate on its historical brokerage business. This arrangement, which will enable the group to maintain a presence in the island and strengthen its partnerships with insurance companies, will nevertheless impact its non-current operating expenses in the amount of €5m. Furthermore, the cost of closing down our activity in Argentina and stopping our operations in Belarus will have an impact of €2m.

"In recent years, our group has both extended its geographic positioning and consolidated the markets in which we are already present. 2014 has been a pivotal year during which, despite the uncertainties related to the macroeconomic and regulatory environment, April has continued to benefit from a sustainable, profitable - expected current EBIT margin of c. 10% - and cash generating model, as well as a stronger entrepreneurial culture and innovative momentum.

That said, we cannot be satisfied with this level of performance, which does not reflect April's true potential. We have therefore already initiated the measures that should enable us to restore our competitiveness: optimisation of information systems, opening up to key accounts, digital offer of products and services and priority given to innovation. Furthermore, as we consider the quality of management is essential to steer and roll out these actions, we have strengthened the group's management team. Emmanuel Morandini has recently joined us as Deputy Chief Executive Officer to support us in the group's development and performance improvement.

The group remains confident in the solidity and relevance of its economic model and reaffirms the continuity of its multi-specialist strategic approach," commented Bruno Rousset, Chairman and CEO, APRIL.