Highco: gross margin for the 1st quarter of 2022

Aix en Provence, April 26, 2022 (6:00 p.m.)

HIGHCO: ACTIVITY GROWTH IN Q1 2022 IN LINE WITH EXPECTATIONS (GP UP 1.1%); 2022 TARGETS CONFIRMED

Q1 2022 Business growth driven by digital

• Q1 2022 gross margin¹ of €18.8 million, up 1.1% on a reported basis and LFL².

• Good performance of digital activities (Q1 up 5.7% LFL) with very strong growth in Mobile; decline in offline activities (Q1 down 6.6% LFL).

• Business growth in France (Q1 up 1% LFL) and internationally (Q1 up 1.8% LFL).

2022 orientation confirmed

HighCo Venturi Startup Studio: First equity investment and development of ongoing projects

Annual Financial Report 2021 and General Meeting of May 16, 2022

1 Unaudited data.
2 Like-for-like: On the basis of a like-for-like scope and at constant exchange rates (ie by applying the average exchange rate for the period to the data for the period being compared).

Didier Chabassieu, Chairman of the Management Board, declared: “HighCo’s start to the year is in line with expectations, with slight growth driven by two major trends. First of all, the growth of mobile activities has accelerated significantly (+ 21.2%). On the other hand, the inflationary environment led to strong growth in the volume of discount vouchers, with purchasing power being at the heart of consumers’ concerns. To support our customers in accelerating the transformation of retail, we will continue to invest in innovation in two key areas: the shift to digital promotions and the emergence of Web3 retail.

Q1 2022 BUSINESS GROWTH DRIVEN BY DIGITAL

As anticipated, HighCo grew slightly in Q1 2022 and posted a gross margin up 1.1% to €18.8m.
This change is mainly due to:

• Double-digit growth in Portable (+21.2%);

• Healthy performance of coupon clearing with volumes up (+9%);

• Slight decrease in the management of traditional promotions;

• Decrease in marketing & communication consulting activities in France (-14.2%).

These factors have led 5.7% growth in Digital in Q1 2022. Its share in the Group’s total gross margin increased significantly, from 62.6% in Q1 2021 to 65.5% in Q1 2022. At the same time, offline activities fell by 6.6% in the quarter.

The story continues

Growth in France and internationally

In France, gross margin for Q1 2022 increased slightly by 1% to €16.14 million and represented 85.9% of the Group’s gross margin. The main reasons for this growth are: double-digit growth Portable businesses (+20.8%), the strong increase in volumes of compensated coupons (+11%) and the decline in traditional promotion management activities and marketing & communication consulting activities.
Digital grew by 6.9% in Q1 2022, accounting for two-thirds of total business activity. Impacted by the loss of a marketing & communication consulting client, offline activities fell by 9.1% over the quarter.

Internationally, the gross margin for Q1 2022 increased by 1.8% to € 2.65M and represented 14.1% of the Group’s gross margin.
In Belgium, the gross margin increased by 0.3%. Performance was driven by growth in coupon clearing companies and the slowdown in the management of promotions. The share of Digital in Belgian companies represented 52.7% of the gross margin.
With double-digit growth (+13.5%), activity in other countries (Spain and Italy) is more dynamic and represents 1.9% of the Group’s gross margin.

2022 TARGETS CONFIRMED

The Group specifies that it is not directly or indirectly active in the regions involved in the Russian-Ukrainian conflict. However, the ongoing war, in addition to the Covid-19 pandemic which continues to spread, creates uncertainty.
In this complex and changing environment, HighCo remains vigilant as to the potential impact on its retail and retail customers, in particular the consequences of the sharp rise in commodity prices and inflation.

Given the performance recorded in Q1 and the business growth outlook expected for Q2 (comparable to the published growth of Q1), the Group has confirmed its guidance for 2022:

• Slight growth in gross margin (2021 gross margin: €76.52 million);

• A increase in adjusted operating margin (adjusted EBA/gross profit) of 50 basis points (2021 adjusted operating margin: 20.3%).

HIGHCO VENTURI START-UP STUDIO: FIRST EQUITY TAKING AND DEVELOPMENT OF CURRENT PROJECTS

After having radically changed our ways of doing things, the Covid-19 crisis has accelerated the retail transformation. Brands and distributors face huge new challenges: the transformation of physical points of sale, the strong growth of e-commerce, the development of m-commerce and social networks, and the emergence of Web3.

Through its startup studio HighCo Venturi, HighCo continues to invest in innovation support its clients in accelerating the transformation of retail in two key areas: switch to digital promotions and the emergence of Web3 commerce.

Towards digital promotions

In an inflationary environment where purchasing power is a major consumer concern, promotions are at the heart of brand and distributor strategy.
Through its startups in the growth phase and an initial equity investment, HighCo invests in the creation of solutions for:

• develop digital coupons, and

• provide retailers with a technology platform for managing promotions.

1) DEVELOP DIGITAL COUPONS

Universal Mobile Discount Coupons: HighCo Nifty continues its development with the aim of simplifying access to the generosity of the brand. Initially developed in pharmacy chains (6,000 pharmacies will be covered by the end of 2022), this solution will then be rolled out to food chains.
Smart Discount Coupons: Coupon HighCo[AI] allows brands to optimize their generosity strategy thanks to the artificial intelligence of its decision-making and recommendation engines. Major brands such as Danone or Blédina use this solution to optimize the ROI of their relational programs by industrializing the personalization of campaigns based on their first party data.

2) PROVIDE MERCHANTS WITH PROMOTIONS MANAGEMENT TOOLS

HighCo announces its participation in the launch of the very first SaaS centralized promotion management platform.
In the context of the growing use of promotions, merchants face a growing need for automation in management, campaign planning, regulatory compliance, and more. This situation is what led to the start RretailJech founded by Martin Rennert to develop its technological platform unipromo for retailers. HighCo invested €0.5 million in the first funding round by acquiring a third of the share capital.

Supporting the emergence of Web3 retail

Virtual trade still in its infancy, HighCo is already supporting brands and distributors in their first steps towards Web3 through a complete offer: creation of a collection of non-fungible tokens (NFT), purchase of land in the metaverse, development of interfaces with electronic commerce, etc.
For example, HighCo recently worked with French department store chain Printemps to create its first-ever virtual and immersive shopping experience. In the 3D digital store, users can purchase a selection of exclusive items and enter a raffle to win artwork NFTs.

2021 ANNUAL FINANCIAL REPORT AND 2022 GENERAL MEETING

HighCo 2021 Universal Registration Document was filed with the Autorité des marchés financiers on April 21, 2022 under number D22-0325. The document contains the annual financial report and is available on the HighCo website (www.highco.com), section Investors > Regulated information > Annual Financial Report.

the The annual general meeting will take place at the head office in Aix-en-Provence on May 16, 2022. A dividend of €0.32 per share for the 2021 financial year will be proposed to the meeting, representing a substantial increase. Payment is scheduled for May 23, 2022 (ex-dividend of May 19, 2022). the cancellation of treasury shares equal to at least 8% of the share capital will also be offered.

If measures preventing physical attendance are taken, the Board of Directors may decide to hold the meeting behind closed doors. Shareholders would be informed of this and are invited to regularly consult the Company’s website at the address: https://www.highco.com/investors/assemblee-generale/.

GOVERNANCE

HighCo announces that Céline Dargent has resigned from the Management Board today. The Supervisory Board took note of the resignation and decided not to proceed with a replacement. The Management Board is now made up of two members: Didier Chabassieu, Chairman of the Management Board, and Cécile Collina-Hue, member of the Management Board and Chief Executive Officer. HighCo recalls that the Management Board works in close collaboration with the Executive Committee, made up of business unit managers and experts in strategy and in steering the Group’s operations and management.

About HighCo

Expert in data marketing and communication, HighCo is constantly innovating to support brands and retailers in the face of the retail challenges of tomorrow.
Listed on compartment C of Euronext Paris, and eligible for the PEA-PME, HighCo has more than 500 employees and has obtained Platinum status from EcoVadis, which places the Group in the top 1% of companies in terms of CSR performance. and responsible purchasing.

Your contacts

Cecile Collina Hue Cynthia The rat
General director Press relations
+33 1 77 75 65 06 +33 1 77 75 65 16
comfi@highco.com c.lerat@highco.com

Events to come

Publications take place after market close.

Q2 and H1 2022 Gross Margin: Thursday July 21, 2022
2022 half-year results: Wednesday August 24, 2022
Conference call on the 2022 half-year results: Thursday, August 25, 2022
Gross margin Q3 and 9 months YTD 2022: Wednesday October 19, 2022
Gross margin for the 4th quarter and full year 2022: Wednesday, January 25, 2023

HighCo is a constituent share of the CAC indices^® Small (CACS), CAC^® Medium and small (CACMS), CAC^® All-Tradable (CACT), Euronext^® Tech Growth (FRTPR) and Enternext^® PEA-PME 150 (ENPME).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
For more financial information and press releases, visit www.highco.com

This English translation is for the convenience of English-speaking readers. Therefore, the translation cannot be relied upon to support any legal claim, nor be used as the basis of legal advice. HighCo expressly disclaims any liability for any inaccuracies herein.

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