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November 2006

Making the transition to fast-forward mode

D Lamouche

The Group’s recently announced results for Q3 2006 confirm that we have achieved the transformation we committed to make towards a more services-oriented business model, and a focus on high added-value products. Indeed, we recorded a growth rate of 20.8% in our revenues for services, and a 35% increase in orders (making an overall figure of 16.6%) while our products business – where we recently appointed a new Director – has suffered somewhat from strong pressure on prices.These results confirm the performance of our combined products and services offerings, and show that the strategic choices and the Group’s action plan we defined at the start of the year were correct.

Today, that plan is in full swing, with the main points being:
A special focus on seven key growth initiatives relating to high added-value products. In particularly, I’d mention HPC (supercomputing), where we are reaching new heights of success with Aliena Aeronautica (a subsidiary of Finmecanica), the University of Manchester and a significant contract in Asia. There can be few companies in the world capable of moving up from 229th to 5th position worldwide (and number one in Europe) in less than two years in the field of supercomputers. Other initiatives include storage solutions and high added-value services, notably in telecommunications, where recent success stories include Maroc Connect, Embratel and SFR – whose project to deliver video content to mobile phones, delivered with the help of our new subsidiary Agarik, amply demonstrates the value placed on our solutions. And, of course, our services and software solutions for customs and tax authorities, where Bull has a global reputation.
A new sales and marketing organization in France for both products and services, aiming to optimize the operational efficiency and re-organization of the Western European network outside France, in order to stimulate product sales.
A new worldwide organization for our maintenance and support services, with a new Director at its head responsible for re-energizing this business and redefining our offerings in order to halt the decline in revenues due mainly to the increased reliability of hardware. We are already making good progress in this respect.
A new R&D organization, designed to accelerate innovation both in products and services, and to encourage synergies.
All this represents the accelerated business transformation that we are committed to delivering. By combining our strategic vision with our key areas of expertise, I am convinced that Bull has all the qualities needed to ensure the success of your most critical projects.

Didier Lamouche
Chairman and Chief Executive Officer



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