New growth ambitions for APRIL after a year of transition in 2011

Decline in 2011 operating profit on ordinary activities in line with guidance
Board to propose payment of an unchanged dividend of €0.49 per share
Growth and profitability momentum to be ramped up

(IFRS - en M€)	2011	% of sales	2010	% of sales	Change
Consolidated sales	757.4		743.3		+ 1.9 %
Net financial income	13.3	1.8 %	24.4	3.3 %	- 45.5 %
Operating profit on ordinary activities	84.1	11.1 %	97.0	13.0 %	- 13.3 %
Operating profit	79.6	10.5 %	103.2	13.9 %	- 22.9 %
Net profit	55.5	7.3 %	79.7	10.7 %	- 30.3 %

APRIL recorded consolidated sales of €757.44 million in the year ended 31 December 2011, corresponding to an increase of 1.9% on a reported basis. Sales performances continued to reflect refocusing on the group’s core business as a broker, as a result of which commissions increased by 6.2%, while insurance premiums extended their decline, down by 5.4%.

At consolidated level, the decline of more than €11 million in net financial income, due notably to impairment losses recognised against certain fixed-income securities, accounts for most of the variance in operating performances compared with 2010. The €84.1 million operating profit on ordinary activities was in line with the guidance provided when the first-half results were published, which means that the operating margin declined by 1.9 points to 11.1% of sales.

Looking at the detail by division, Health & Personal Protection in France and abroad recorded a decline in its operating margin on ordinary activities of 20.5% to 15.7%, reflecting a decline in financial income, weaker technical performances in health and group protection insurance because of the reform of pension systems, and one-off difficulties in Switzerland and the United Kingdom requiring changes to business models.

Property & Casualty in France and abroad, which have been growing strongly, entered a new phase as regards their profitability, the operating profit on ordinary activities increasing from €-3.1 million in 2010 to €15.2 million in 2011, the margin improving to 5.7% of sales. The turnaround in the results of the captive insurance company and of the distribution network rounded off the good performances by the niche wholesale activities, consolidating the division’s solid growth and profitability fundamentals.

The consolidated operating profit declined more sharply, down 22.9%, no longer benefiting from profits on disposals and earn-outs that totalled nearly €8 million in 2010, while impairment losses were recognised against goodwill in 2011 following the restructuring of corporate brokerage at the Property & Casualty division. Income tax expense came to €24.6 million in 2011, down 20% from 2010. Finally, consolidated net profit came to €55.5 million, equivalent to a net margin of 7.3% and a return on capital employed of 12.1%, while earnings per share amounted to €1.37.

As regards the consolidated balance sheet, shareholders’ equity came to €475.3 million at 31 December 2011, while gross borrowings were extremely slight at only €5.1 million and the cash position amounted to €149.7 million.

Following what was a year of transition in 2011, in light of the group’s financial position and as a mark of confidence in the group’s development prospects, the Board of Directors will table a resolution at the Shareholders’ General Meeting proposing to distribute an unchanged net dividend compared with 2010, i.e. €0.49 per share, equivalent to a payout rate that, exceptionally, will represent 36% of consolidated net profit.

In a contrasted economic and financial environment, APRIL completed its convergence programme in 2011, laying the foundations for its growth plan, all the while reducing risks of earnings volatility going forward. APRIL is now in a position to forge ahead in its development: simpler and leaner organisation, single brand, first-rate financial structure, diversified businesses and distribution channels, global geographical presence to achieve a global dispersion of risks. Having laid the foundations, APRIL entertains new ambitions, with as goal to leverage up its momentum from 2012 to 2015 by posting stronger organic growth than the market and improving steadily its operating profitability over this period.

APRIL (Compartment B, Deferred Settlement Service) employs 3,830 people in 33 countries and provides services to more than 6 million policyholders.

The Analysts’ Meeting will be held at 9.15 a.m. on Tuesday 6 March at the Four Seasons George V Hotel in Paris. All the supporting documents for this presentation will be available on the morning of 6 March on the group’s website at www.april.com, Finance section.

APRIL will publish sales for the first quarter of 2012 on Monday 30 April after the market closes.

Contact

Jean-Marc ATLAN
EKNO
Adviser to the Chairman

+33 (0)6 07 37 20 44
jean-marc.atlan@ekno.fr

(IFRS - €m)	Health & Personal Protection	Property & Casualty	Other
Sales	499.4	267.3	-
Net financial income	8.1	3.8	1.4
% of sales	1.6 %	1.4 %
Operating profit on ordinary activities	78.3	15.2	- 9.5
% of sales	15.7 %	5.7 %
Operating profit	78.2	10.8	- 9.5
% of sales	15.7 %	4.0 %
Net profit	47.2	8.4	- 0.1
% of sales	9.4 %	3.1 %

(Sales: inter-division eliminations: €9.3m)

APRIL

5 March 2012