Meilleurtaux : The Reference for Credit on the Internet

1
Meilleurtaux The Reference for Credit on
the Internet
Presentation of the Results for 2005
Meeting of March 29, 2006
2
Synopsis

• Our business activity
• 2. The market and Meilleurtauxs strengths
• 3. Developments for 2005
• 4. Results for 2005
• 5. Meilleurtaux on Alternext
• 6. Prospects

3

• Our Business Activity
• Real Estate Credit Brokerage

4
Our business activity

• Real Estate Credit Brokerage
• A website tool
• An integrated network of agencies (40 agencies
  by the end of March 2006)
• Over 100 partner banks

5
Background

• 1999 www.meilleurtaux.com is the number one
  real estate website
• 2000-2003 The take off period
• Very high increase of the number of applications
  filed
• 50 partner banks
• Opening of the 1st agency in 2001
• 2003 Reaching financial return
• 2004 Accelerating development
• High increase of the number of applications
  granted loans
• Important turnover progression
• Expanding the agency network of agency (18 end of
  2004)
• Over 100 partner banks

6
An efficient business model

• Free Service for Private Individuals
• Commissions charged to process  Internet
  applications 
• 1 fee charged on the loans granted by the banks
  (with ceilings)
• Commissions and fees charged to process  agency
  applications 
• 1 fee charged on the loans granted by the banks
  (with ceilings)
• Application fee charged to the borrower instead
  of application fee charged by the banks

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Benefits for the customer

• An efficient process
• - Same day processing of applications through
  the Internet site
• An optimized access to financing
• - Money saving
• - Time saving
• - Professional advice
• - No additional cost
• The choice
• - All Internet
• - Agency appointment

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Benefits for the banks

• High Quality Prospects
• A tool of conquest
• Identitying prospects
• Assessing applications
• File preparation
• High potential prospects
• Dynamic 59 are under 35 years old
• High income prospects between 35 K and 50 K
  , (25 over 50 K )
• Socio-professional categories
• 38 of executives
• 24 of employees

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A very high growth
Number of applications filed
Number of loans granted
x 2.5 in 2 years
x 5 in 2 years
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A high growth
Turnover Evolution
x 4.8 in 2 years
The turnover increases twice as fast as the
number of applications filed on the website
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• A Market with Potential
• and Known Strengths

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• A market with potential

Internet and Finance The Convergence
A strong complementarity An ideal media to
Compare, inform and distribute Backed up by
the generalization of the use of
Internet Internet penetration 31.7 to 37,7
between the 1st and the 4th quarter 2005
Source Médiamétrie - FEVAD Jan. 2005
Sources Médiamétrie - 2005
Our business activity
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A market with potential

• Brokerage A Growing Market
• Real estate credit
• 1998-2003 The amount of transactions increased
  from 52 billion to 100 billion
• 2004 718 200 real-estate transactions of which
  85 financed with a credit loan representing
  98 billion
• 2005 750 000 real-estate transactions for about
  110 billion of credit loans granted,
  which represents an additional 13 compared with
  2004 ( 3 in transaction volume and 10 in
  prices )
• Brokerage in France
• About 18 of all credit loans granted in 2005
  (versus 15 in 2004)
• For a turnover of about 260 million (versus
  200 million in 2004)

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A market with potential
A Very Strong Potential for Catch-Up
Market shares of real estate credit brokerage in
2005
Source Meilleurtauxs estimates
Market shares expected to double in France by
the end of 2009
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• A market with potential

A Scattered Competition
Agencies
Meilleurtaux
Internet
Meilleurtaux is the only company with a full and
integrated offer
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Strengths
The Power of Multichannel Distribution

• A reference web site
• The power of an integrated network of agency
• A local reference company
• A high number of partner banks
• - over 100 partner banks
• An efficient marketing approach
• - A high media visibility
• - Partnerships with Internet reference companies
  
• Boursorama.com, Yahoo.fr, SeLoger.com,
  Immostreet.fr, Pap.fr
• - A powerful word of mouth

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Strengths

• An Experienced Management
• Christophe Crémer - 51 years old - President and
  founder
• Graduate from HEC Business School 1976 DEA
  Econométrie (Post-graduate degree in
  Econometrics) BNP CITIBANK Founder of
  Sybel Informatique
• Thierry Jover - 48 years old Bank Partnership
  Director
• Graduated in Political Sciences, UCB - Sygma
  Banque (Groupe Cofinoga) - Banque La Hénin
• Gérald Loobuyck - 41 years old - Directeur
  Assurance
• Graduate from ISCA AIG Development Director
  Cardif (Forecasting and Retirement Director)
• Alain Colliaux - 43 years old Franchise
  Director
• Graduate from Institut Technique de Banque -
  Groupe Banque Populaire - BPVF Network
  Co-Director
• Jacques Daboudet - 40 years old Commercial
  Director
• Graduate from Institut Technique de Banque -
  Groupe Banque Populaire - Founder of Finavenir
• Thierry Frémont - 51 years old Financial
  Director

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Meilleurtaux Developments 2005
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A very dynamic year 2005

• Meilleurtaux in 2005

• Applications filed on the site www.meilleurtaux.co
  m
• - 304 270 in 2005 (66 )
• Managed by the Internet platform
• - 30 teleadvisors end of 2004, reaching 50 end
  of 2005
• - 6 400 credit loans granted (versus 3 000 in
  2004, i.e. 113)
• Managed by agencies
• - 18 agencies in 2004, reaching 32 in 2005
• - 11 400 credit loans granted (versus 3 400 in
  2004, i.e. 235)
• - 7 500 coming from the Internet
• - 3 900 coming from a direct approach (
  word of mouth, prescribers )
• Totalling 17 800 credit loans granted in 2005
  (175 )

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A very dynamic year 2005
An Expanded Coverage
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A very dynamic year 2005

• 2005 Key Facts

• Listing of Meilleurtaux on the stock exchange
  (Alternext)
• - Growing public awareness
• A booming market situation for real estate credit
• - Low inflation rates maintained
• - An active real estate market
• Further development of the Internet website
• - Increasing number of households equiped with
  microcomputers
• - Development of ADSL
• Partnerships with banks were intensified
• New activities were expanded or launched

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A very dynamic year 2005
Launching of New Activities and Services

• Defiscalization of real estate
• Insurance for borrowers
• The franchise
• Prescribers channel

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Meilleurtaux Results 2005
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Reminder of 2005 objectives
Objectives Presented during the Listing of
Meilleurtaux on the Stock Exchange

•  To double turnover and maintain profitness for
  2005   

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A dynamic, profitable and strong company
A Very High Growth
X 4.8 in 2 years
Consolidated figures (IFRS)
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A dynamic, profitable and strong company
A Growing Rate of Return
Consolidated figures (IFRS)
27
A dynamic, profitable and strong company
Income Statement
Consolidated figures (IFRS)
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A dynamic, profitable and strong company
A Self-Financing Growth
5 189
752
5 476
( 28 )
(1) Of which 744 k in leasing in 2005 ( 345 K
in 2004 ) (2) Of which 3 632 k are due to
an increase in capital in 2005
Consolidated figures (IFRS)
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Une société dynamique, rentable et solide
Une structure financière saine
Chiffres consolidés aux normes IFRS
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A successful business model
Two Complementary Profit Models Internet/
Agencies

• The Internet platform
• A light cost structure
• An Internet advisor successfully processes 15
  applications per month
• An Internet advisor has a turnover of 180 K per
  year
• The model agency
• 1 director, 6 advisors, 2 assistants
• Development initiated by internet and relayed by
  the local network
• Break-even point reached after 6 months, rate of
  return reached after 12 months
• After a year of activity - 50 loans
  applications granted - A turnover of 900 K
  per year

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Meilleurtaux on Alternext
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Outcome of the listing on May 17, 2005

• Total transaction volume 344 550 shares
• Increase in capital of 309 650 shares, of which
  28 000 are stock options for employees
• Transfer of 36 900 shares to employees who
  exercised their option to buy
• Number of securities publicly traded 316 550,
  excluding stock options for employees
• Procedure for securities distribution
• Offre à Prix Ouvert (Open Price Offering,
  OPO) on 20 of securities (1)
• Global Placement on 80 of securities
• Initial offering price fixed at 13,70
• Offering suscribed 15 times
• (1) French IPO process

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Meilleurtaux on the stock market
CAC 40
Meilleurtaux

• Initially offered at 13,70 , the share was
  quoted at 20 on Dec. 31 (46) and 43,40
• on March 27, 2006 (217)
• Increased quotation since January 2006
• Daily average trading volume is 6 800 securities
• Float represents about 14 of capital today (9
  at initial offer)

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Capital distribution
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Development Prospects
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Development prospects
Strengthening the Internet service
Opening of a second platform in Le Havre By
the end of 2006 150 advisors Improving client
follow-up Dealing with applications without
pre-contract  (38 ) Strengthening the interface
with banks Internet will represent about 30 of
the total turnover (versus 25 )
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Development prospects
To Further Develop the Network of Agencies
Source Meilleurtaux.
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Development prospects

• Developing our core business
• - Franchise network
• - Real estate ???? activity - Activité
  prescription immobilière
• Credit restructuring
• Mortgage credit
• Credit insurance
• New activities
• Estate defiscalization
• Life Assurance
• Assurance comparator (car, housing..)

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Synthesis
A publicly recognised company A unique business
model A market with potential A strong and
profitable company Very favorable development
perspectives
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Objectives 2006
In 2006 The turnover should increase by 80
with a stable rate of return A beginning of the
year responding to planned objectives
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Meilleurtaux The Reference for Credit on the
Internet
Presentation of the results for 2005
Meeting of March 2006