SECTION 1 -

specific, it is unlikely that any future change to an incentive scheme will affect a large portion of the
Group’s business. New Services benefits from a good balance between developed and strong growth
emerging markets, which the company expects to be an important source of future expansion.
The following table provides a breakdown of the 2009 issue volume and operating revenue
of New Services between developed and emerging markets.
In millions of
euros
Employee
and public
benefits
products
and
services
Developed Markets
Performance
products Total
13
Employee and
public benefits
products and
services
Emerging Markets Total
Performance
products Total
Issue volume 5 394 582 5 976 5 559 872 6 431 12 407
% of total 43% 5% 48% 45% 7% 52%
Average
annual growth
2005‐2009
8.3% 29.9% 9.6% 5.7% 15.8% 6.7%
Operating
revenue
307 109 416 334 58 392 808
% of total 38% 13% 51% 42% 7% 49%
Number of
countries
15 11 17 18 20 23 40
New Services has 27 products, more than 80% of which (based on issue volume) are used to
serve the primary needs of beneficiaries, for which demand is relatively immune to the impact of
business cycles. The Group’s diversification is also reflected in its portfolio of new product lines with
strong growth potential.
New Services also benefits from its diversified customer base. In 2009, two‐thirds of the
Group’s customers were businesses with fewer than 200 employees. The clientele is composed of
local, regional and international companies, public authorities and non‐governmental organizations.
In addition, New Services' customer base is diversified by sector. This diversification is facilitated by
the Group's wide range of products, services and media.
1.2.3 Leadership positions in its core markets
New Services is the global leader of the market for employee and public benefits products
and services, 12 with leadership positions in each of its three main markets (France, Italy and Brazil).
New Services is also a leading player in the performance products market. In particular, the Group
ranks number one in the Latin American market for expense management (issue volume of €818
million in 2009), and the European incentives market (issue volume of €585 million in 2009).
Holding a leadership position is important to the growth potential of New Services, for a
number of reasons:
• economies of scale, which allow the Group to reap the full benefits of issue volume
growth;
• credibility with public authorities, with which New Services maintains a relationship of
confidence, resulting from its strong position in the employee and public benefits
products and services sector;
• a large customer base, and marketing expertise that can drive future growth; and
12 Source: all information concerning the Group's position is based on Company estimates.