2001 Annual ResultsAnalyst & Investor Presentation

Paris and Lyon, March 13 and 14, 2002

Jean-Michel Bérard (Chief Executive Officer)

Emmanuel Olivier (V.P. Finance and Investor Relation)

2

Agenda

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strengths to succeed

Conclusion

3

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strenghts to succeed

Conclusion

4

Independent Software Vendor

Founded in 1985

Listed on the Nouveau Marché (Euronext Paris) since 1997

Our mission:• Esker develops software products that immediately integrate new

and existing technologies to streamline the exchange of vital business information.

Our principles:• Focus on software development• Diversify our product portfolio in complementary markets to

feed company's growth

Esker at a glance

5

3rd largest world-wide fax server software vendor

6th largest world-wide Host Access solutions vendor

Esker at a glanceA world-wide leader

6

16 years of sustained growth

89% of sales outside France

-

5,00

10,00

15,00

20,00

25,00

30,00

35,00

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Annual sales from 1990 to 2001

Esker at a glanceAn international success story

France11%

Germany6%

USA 60%

Benelux4%

Spain2%

Australia4%

Italy2%

UK11%

Sales by country in 2001

7

Subsidiaries in 7 countries :- USA : 3 offices: Madison (WI), Stillwater (OK), Lake Forest (CA)- Europe : France, UK, Germany, Italy, Spain- Asia Pacific : Australia

Esker at a glanceAn international success story

300 employees world-wide

UK7%

Germany3%

Italy1%

Spain2%Australia

3%

USA55%

France29%

R&D27%

Sales and Tech. Support

38%

Marketing13%

Production3%

Management & Admin.

19%

8

Host Access : provide access via a PC to core business information residing on most legacy systems and hosts

IID (Intelligent Information Delivery) : multi-channel electronic delivery of core business information from any enterprise application (ERP, CRM, Legacy, …)

Esker at a glanceProducts

9

Become the world-wide leader in electronic delivery of business documents …

… and to consolidate existing complimentary markets to accelerate our development:

• Print management• Forms Processing• Archiving• EDI-XML • Fax servers…

Esker at a glanceStrategic goal

10

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strenghts to succeed

Conclusion

11

Size: $1 billion a year

Market drivers• Compliance with evolving operating systems (Windows

2000, Windows XP)• Migration to newer architectures (from PC-to6host to

Web-to-Host)

Market forecast• Esker believes the Host Access market will decline by

5 to 10% a year by 2005

Esker’s markets Host Access

12

0

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

3 500 000

1/1/2000

Stabilization

Esker’s markets - Host AccessWorld-wide monthly sales from 1/1/99 to 12/31/01

13

I.I.D. : Intelligent Information Delivery

Distribution of electronic business documents originating from an

enterprise application

Esker’s markets – I.I.DDefinition

14

EnterpriseInformation

System(ERP, SCM, HR, ...)

EnterpriseInformation

System(ERP, SCM, HR, ...)

PaperPaper

Printing

• Notifications• Reminders• Exception management

Physical MailPhysical Mail

FaxFax

TelephoneTelephone

ArchivingArchiving

Internal copiesInternal copies

• Invoices• Reminders• Claims

• Purchase Orders• Delivery notes• Quotes/proposal

• Payroll• Reporting

• All legal document

Man

ual T

asks

Eskers’ markets – I.I.DEnterprises yesterday…

15

EnterpriseInformation System

(ERP, SCM, HR, ...)

EnterpriseInformation System

(ERP, SCM, HR, ...) Pulse

HybridMail

HybridMail

• Invoices• Claims• Reminders

AutomatedFax

AutomatedFax

• Purchase Order• Delivery notes• Proposal/quotes

SMS, Automated

voice

SMS, Automated

voice

• Notifications• Reminders• Exception management

Archiving System

Archiving System • All legal document

Web or E-Mail (Secure)

Web or E-Mail (Secure)

• Reporting• Account statements• Quotes, Delivery notes• Purchase Orders

PrintingPrinting • Other paper documents

XML(RossetaNet)

XML(RossetaNet)

• Invoices• Purchase Orders• Payment

Eskers’ markets – I.I.DToday with IID…

16

Esker’s markets – I.I.DGuaranteed R.O.I for the enterprise

Productivity gains— Eliminate numerous manual activities (printing, waiting, walking,

stuffing, dialing, phoning, archiving, stamping,…)

Cost Reduction— Eliminate primary materials such as paper, ink, printers, envelopes and

office space— Use less expensive media than Post or Fax to carry Business

Documents

Accelerate Business Cycles— Reduce cash collection cycles— Reduce level of inventory— Reduce % of problematic incoming orders

Customer/Supplier relationship improvement — Real-time communication via customer preferred channel— Personalized information can be sent more often to the customer— Senders can be sure that information reaches right destination— Customers can deal more easily with digital information

17

Eskers’ markets – I.I.DReal life business caseA €100 million company produces per month:

•17,000 invoices•5,000 delivery notes•150 collection notices•8 500 collection reminder letters•1 700 purchase orders

Savings are:•Productivity gains 54 000 € •Reduction in material consumption 11 500 € •Total direct gains 65 500 € •Improvement of interest expense 120 000 €

Return on Investment < 5 months

18

90% of paper-based documents originate as electronic documents (Aberdeen)

The e-billing and e-presentment market will reach $3.3 billion by 2005 (Killen & Associates)

75% of American companies use no electronic media to handle their business transactions (National Association of Manufacturers – Ernst & Young)

Per Gartner Group:

By 2004 DOM servers will become as pervasive as networked print servers (0.7 probability)

DOM is approximately a US$560 million market that is growing at 35 % CAGR.

Esker’s markets – I.I.DA market with high growth potential

The IID market should reach $2 billion by 2005

19

Esker’s markets – I.I.DCompetitive analysis

• Accelio (Nasdaq: ACLO), formerly Jetform

• Dazel – Hewlett Packard• Formscape• Macro 4 (LSE)• Streamserve• IBM• …In red: public companies

20

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strenghths to succeed

Conclusion

21

Eskers’ strategy is well balanced between its two product lines:• Host Access :

Mature productLow investmentsCapitalize on existing channels and gain market shareHigh profitability

• IID : New product with high growth potentialDemands high investment in R&D, sales and marketing

Growth financed through optimization of existing commercial world-wide infrastructure

2001 financial statements Esker’s financial rationale for growth

22

Back to growth• + 3.4% at comparable structure• + 18% accounting annual growth

Accelerated growth on IID products• + 25% in 2001• + 47.3% for Q4

Stabilisation of Host Access sales• - 7.8% in 2001

Excellent commercial results in the US• Growth exceeds 10% in 2001

2001 sales reached: 32.3 M€

2001 financial statements2001 : back to growth

23

2001 financial statements2001 sales by country

France

Germany

Benelux

UKItaly

Spain

Australia

Europe

USA

Esker

-30,00%

-20,00%

-10,00%

0,00%

10,00%

20,00%

30,00%

40,00%

F ra n c e Ge rma n y B e n e lu x UK Ita ly S p a in A u stra lia E u ro p e US A E sk e r

2001 Growth by country

Performance is heavily influenced by quality of implementation of the IID strategy:

Australia: growth 36% with 60% of sales in IID

Germany: decrease of 29% with 5% of sales in IID

24

Valéo, Cofinoga, Imerys, C&S Wholesale Grocers Union Bank

of California, Reliant Energy, Pacific Century Cyberworks,

Schneider national, Tab limited, Toronto Mutual Life, South

carolina State Ports Authority, Rexel, Experian, …

2001 Financial statementsOver 100 Pulse servers sold world-wide

2001 revenu : M€1.5

25

-10%

0%

10%

20%

30%

40%

50%

Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01

Lauch of Pulse

2001 Financial statements IID growth accelerates…

26

2001 Financial statements2001 sales by product line

At comparable structure

2001 shows Esker’s ability to further grow its businesses with two main achievements :

High growth on IID products : + 25%

Stabilization of Host Access range - 7,8%

Million euros 2001 2000 Var. %

IID 13,35 10,67 2,68 25,1%Host Access 18,96 20,57 1,61 - -7,8%

Total 32,31 31,24 1,07 3,4%

27

2001 Financial statements 2001 sales by quarter

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

Q1 Q2 Q3 Q4

Europe

US

Esker

28

2001 Financial statements 2001 income statement

Esker continued to heavily invest in R&D, sales and marketing

'000 euros 12/31/2001 % 12/31/2000 % Change

Sales 32 533 100% 27 477 100% 18,4%

Cost of goods sold (2 919) (0.9%) (2 524) (0.9%) (1.6%)R&D expenses (6 797) (2.1%) (6 370) (2.3%) (0.7%)Selling expenses (11 795) (3.6%) (11 013) (4.0%) (0.7%)Marketing expenses (6 577) (2.0%) (5 711) (2.1%) (1.5%)General & administration expenses (5 704) (1.8%) (5 590) (2.0%) (0.2%)Total operating expenses (33 792) (10.4%) (31 208) (11.4%) (0.8%)

Loss before Interest & Taxes (1 259) (0.4%) (3 731) (1.4%) 6.6%Interest income (net) 292 0.1% 289 0.1% 0.1%Operating income (967) (0.3%) (3 442) (1.3%) 7.2%Exceptional items (772) (0.2%) (1 065) (0.4%) 2.8%Amortization of goodwill (273) (0.1%) (246) (0.1%) (1.1%)Income taxes (182) (0.1%) (400) (0.1%) 5.5%

Net loss (2 194) (0.7%) (5 153) (1.9%) 5.7%

29

2001 Financial statements Pro forma income statement

Pro forma data include VSI revenues and cost from 1/1/2000

Millions d’euros 2001 2000 Var.

Sales 32.5 31.3 4%

E.B.I.T -1.3 -4.8 73%Interest income 0.3 0.3 1%Operating loss -1.0 -4.5 78%Exceptional items -0.8 -1.1 27%Income taxes -0.2 0.1 -300%Amortization of goodwill -0.3 -0.2 11%

Net loss -2.2 -5.6 61%

Taking into account VSI’s activities in 2000, improvement is even better.

VSI’s acquisition allowed Esker to implement economies of scale and improve profitability

30

2001 Financial statements Analysis of operating costs

Esker invests to build the future of its products

In % of sales 2001 S2 2000 Change

Cost of goods sold 9.0% 9.4% -0.4%R&D expenses 21.0% 22.1% -1.1%Selling expenses 36.5% 34.2% 2.3%Marketing expenses 20.4% 15.8% 4.6%General & administration expenses 17.7% 17.7% 0.0%Total operating expenses 105.6% 99.2% 6.4%

31

2001 Financial statements Exceptional items

As of 12/31/2001 (in ‘000 of euros)• Write down of treasury stock 276• Write down of goodwill 153• Restructuring costs 343

772

As of 12/31/2000 (in ‘000 of euros)• Write down of treasury stock 311• Restructuring costs 610• Other 144

1 065

32

2001 financial statementsCash flow statement

2001 showed positive cash flow€ 1.3 million from operating activities € 0.5 million net increase in cash

In '000 euros 2001 2000

Financing capacity 594 - 2 578 - Change in working capital 1 865 - 534 -

Net cash provided by operating activities 1 271 2 044 -

Net cash used by investing activities 666 457

Net cash provided by financing activities 63 - 1 741 -

Net increase in cash 542 4 242 -

Cash at beginning of year 7 912 11 606 Net increase in cash 542 4 242 - Change in treasury stock 297 - 548 Currency translation adjustment 49 Cash at end of year 8 206 7 912

33

2001 financial statementsBalance sheet

12/31/2001 12/31/2000 12/31/2001 12/31/2000EUROS EUROS EUROS EUROS

Intangible assets 2 456 633 2 983 570 SHAREHOLDERS EQUITY 13 327 671 15 729 803 Tangible fixed assets 1 152 406 1 368 530 Financial fixed assets 59 717 70 739 FIXED ASSETS 3 668 756 4 422 839 Reserves for risks 176 692 174 809 Inventories 307 639 279 502 Trade accounts receivable 6 669 226 6 727 232 Other receivable 1 191 979 1 740 484 Financial debt 7 602 203 976 Deferred taxes 308 607 647 487 Treasury shares 250 782 548 428 Cash and cash equivalents 7 962 909 7 567 728 Trade accounts payable 4 351 053 4 144 888 CURRENT ASSETS 16 691 142 17 510 861 & other payablePrepaid expenses 495 511 694 192 Deferred revenue 2 992 391 2 374 416

TOTAL 20 855 409 22 627 892 TOTAL 20 855 409 22 627 892

34

Active Passive

Shareholders’ equity

Current liabilities

Deferred income

Fixed assets

Current assets

Net cash on hand

A very healthy financial position…

… resulting from years of careful management.

2001 financial statementsBalance sheet analysis

35

2001 Financial statementsEsker’s market capitalization

Total value Value per share

in M€ in Euros

Market capitalization 14.0 4.1

Cash 8.0 2.3

Value excluding cash 6.0 1.76

Esker is valued at (not including cash):

19% of 2001 sales

1,75 times its cash

36

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strenghts to succeed

Conclusion

37

Installed baseBanking, Insurance, retail,...

Direct sales to large accountsHeadpin strategy

Channel sales / partnershipsERP, Output management, Archiving, Postal services,...

Srategy – I.I.DSales strategy

38

Strategy – I.I.DThe headpin approach

Seg 1App 1

Seg 2App 1

Seg 3App 1

Seg 1App 2

Seg 1App 3

Seg 2App 2

* From Inside the Tornado

The goal is to dominate the market within the headpin, providing a starting point for the rest of the bowling pin.

Headpin

39

Strategy – I.I.DSupply Chain Communications

Capacity, promotion, plans, delivery schedules

Raw materials, intermediate products, finished goods

Credits, consignment, payment terms, invoice

Sales, orders, inventory, quality, promotion plans

Returns, repairs, servicing, recycling, disposal

Payments, consignment

Information

Material

Finance

Information

Material

Finance

ManufacturersSuppliers Distributors Retailers Customers

40

Strategy – I.I.DA new sales approach

Facsimile Print Secure e-mail Web Wireless

Purchase Orders Invoices Order Confirmations Collection Notices

Distributor communication Supplier communication Customer communication Partner communication

Technology

Documents

Business

Historical EskerApproach.

Solution SellingApproach

41

IID quarterly sales in Australia

050 000

100 000150 000200 000250 000300 000350 000400 000450 000

Q100

Q200

Q300

Q400

Q101

Q201

Q301

Q401

2002 growth: + 167%

Strategy – I.I.DAn remarkable example

42

Strategy – I.I.DStrategic alliances with key partners

Cincom Systems

France Télécom

Mobius Management Systems

La Poste

Zixit Corporation

Complemented by active recruitment of local partners: Novaxel, Lasercom, Creatis, …

43

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strenghts to succeed

Conclusion

44

Esker’s strengths to succeedPrestigious references

Opel, Mercedes Benz, Lufthansa Service, Commerzbank, Hansestadt Hamburg, Siemens, Frei Universität Berlin…

Mapfre, Cadena Sol, Diputación de la Coruña, Porcelanosa, Pirelli, AEG Fabrica de Motores, Feria Muestrario de Valencia…

Kodak, Casino, Ministère de la Défense, Ministère du Travail et des Affaires Sociales, France Télécom, ELF Antar, Sagem, Gec Alsthom, BMW, Pierre & Vacances, EDF, Société Générale, Crédit Agricole, Seita, Siemens, Continent, Infogrames, Mercedes Benz, Ikea, Cadbury, Usinor, Cofinoga, Lafarge…

Durham County Council, London Ambulance, Houses of Commons, Ocean Infogram, Rolls Royce, University of Humberside, Nacanco, BBC…

Lloyd Adriatico, Teuco Guzzini, Università di Napoli, Banca Passadore…

AT&T, Healthcare USA, Nieman Marcus, Phillips Petroleum, Danone Company.

Peel Board of Education, American Express, First USA, The Vanguard Group, Staples,Target Stores, Ohio State University, UCLA University of California, University of Oklahoma Library, General motors, Motorola, Inc., Mobil Oil Corporation, Pennsylvania Power & Lighting Co, United States Air Force, Federal Reserve Bank of NY, First National Bank & Trust…

Germany

Spain

France

UK

Italy

Australia

USA & Canada

45

Well-balanced ownership structure between founders and investors

Independent Supervisory Board

A commitment to transparence and good corporate governance evidenced by the Euronext NextEconomy label

Open communication with all shareholdersInfo Plus newsletterMulti channel e-mailing list powered by Pulse

Thomas Wolfe

8%

Capital risque

2%

Russell Teubner

7%

Public59%

Esker S.A.4%

David Droman

6%

Benoît Borrits

3%

J.Michel Bérard

9%

Autres nominatifs

3%

Esker’s strengths to succeedPublic accountability

46

Jean-Michel Bérard

CEO

Co-Founder of Esker

Emmanuel Olivier

VP Finance and Investor

Relations

Dan Speer

CEO Esker US

Jean-Jacques Bérard

VP Research & Development

Lynn Weatherby

VP Corporate Marketing

Mitch Baxter

VP Business Development

Esker’s strengths to succeedAn international managing team

47

Esker’s strengths to succeedEsker’s vision

Fax ServersFax ServersPrintingPrinting

EDI EDI Workflow Workflow

ArchivingArchiving

FormsProcessing

FormsProcessing

Information Delivery

48

Esker at a glance

Esker’s markets

2001 Financial statements

Strategy

Esker’s strenghts to succeed

Conclusion

49

Esker starts a new growth area

• With a highly promising project targeting a growing market

• With very positive initial results

Esker will benefit from its experience

• Mature products will generate positive cash flows to accelerate the

success of the IID product line

• Installed bases speed up market presence for new products

• International infrastructure (people & subsidiaries) will help Esker

become a world-wide leader in IID markets

Esker has all the necessary resources to succeed and stay

independent

Conclusion

2001 Annual ResultsAnalyst & Investor Presentation

Paris and Lyon, March 13 and 14, 2002

Jean-Michel Bérard (Chief Executive Officer)

Emmanuel Olivier (V.P. Finance and Investor Relation)