Le Foyer S.A.

The combination of an increased headcount and the costof replacing the IT system (booked to 2003) drove operatingexpenses higher.Net profit in 2003 amounted to € 0.08 million against€ 0.21 million in 2002.Consolidated figures for asset management(including financial income of Le Foyer S.A.)(€ million) 2003 2002 2001Assets under management 1 182.16 1058.00 1 046.60Net profit 2.80 1.87 2.82Headcount (at year-end) 31 23 2240OutlookDespite signs of recovery, the economic environmentremains fragile. Positive equity-market trends should benefit FoyerAsset Management and Le Foyer, Patrimonium & Associées in2004. Changes in Luxembourg and European legislation havetriggered repositioning moves within Luxembourg’s privatebanking industry. While this repositioning has the potential tocreate both opportunities and challenges, it is too soon to drawany conclusions on its overall impact.