STORE ELECTRONIC SYSTEMS (SES)

• EBIT margin: major growth, at 33.9% of turnover vs. 25.7% for S1 2006.
• Profit before tax : 6.919 K€, up 118.7%
• Profit after tax : 4.558 K€, up 120%

Turnover

S1 total sales amount to 20.15 M€, against 14.23 M€ during the same period in 2006. Export sales show strong growth at 5.68 M€, up 138.7%. In France, turnover amounts to 14.47 M€, up 22.1%; growth on the domestic market could have been even stronger without the slowdown in orders from franchised stores between April 1 and May 10 (“uncertainty “due to presidential elections).
Globally over the 6 months period, recurrent business (maintenance, reorders) accounts for 27.9% of turnover, while 72.1% is due to equipment of new stores. Export sales account for 28.2% of total turnover, against 17% over the same period last year.

Profitability

Increase in gross margin combined with volume growth, resulted in yet another substantial increase in EBIT margin at 33.9 % vs. 25.7% for S1 2006. This is 11 percentage points above company objectives for a 4 year period announced at the IPO.
The sensitivity of the business model to volume increases is best illustrated by an increase in labour costs of 8.9% vs. S1 2006, to be compared to sales growth of 41.6%.

Balance sheet

The Company has no financial debt; the cash position amounted to 8.4 M€ as of June 30 2007, against 6.1 M€ on December 31 2006.

Outlook

- FY 2007
Between July 1st and August 24, SES has recorded 71 new orders against 32 over the same period last year, i.e a 122% growth.
This good start combined with the gain of the Système U competitive bid (892 stores, exclusive supplier) should allow SES to continue to grow in line with its objectives (average of 40% p.a between 2007 and 2009). EBIT margin for 2007 should be above the Company’s long term objective communicated during the IPO (22.7% of sales) by at least 7 percentage points.

- 2008 and 2009
Store Electronic Systems believes its value proposition is well positioned on a growing market with substantial potential. The conclusion of current negotiations for new significant roll-outs should secure volumes in line with the Company’s growth objectives. Profitability levels should remain above objectives.

Q3 turnover will be published on November 14, 2007.

About Store Electronic Systems
Store Electronic Systems is a leader in Electronic Shelf Labelling systems for large-scale food and non-food retailers. The global market for this reliable, high added-value product offers strong potential, with equipment currently being rolled out worldwide.

Store Electronic Systems is listed on the Eurolist market – Compartment B- on the EuronextTM stock exchange in Paris.
Mnémonic: SESL
ISIN Code: FR0010282822 - Reuters: SESL.PA – Bloomberg: SESL.FP
www.ses-esl.com

Store Electronic Systems
PLEASE CONTACT

Thomas CHASSEPOT
Financial Director
Tél. : +33 (0)1 34 34 61 61
thomas.chassepot@ses-esl.com

François Berrubé
Marketing Manager
Tél. : +33 (0)1.34.34.61.61
francois.berrube@ses-esl.com