SECTION 1 -

issuer allows it to market regulated products throughout the European Union; and most importantly it
allows affiliated merchants to use their existing MasterCard payment terminals (through which
transactions can be filtered on a customized basis), to accept the Group’s electronic products without
any additional investment.
New Services has also created a proprietary processing system called WATTS (Worldwide
New Services Transactional Ticket Software), which was developed for the management of electronic
transactions in Brazil. The WATTS system has recently been deployed in Chile, and the Group intends
to use it throughout Latin America.
Two successful examples of the migration of New Services products to electronic format are
the Childcare Voucher ® in the United Kingdom and the Ticket Restaurant ® and Ticket Alimentación ® in
Brazil. After an initial phase in which costs increased modestly as a result of new investments and the
dual‐use of paper and electronic formats, the issue volume of both products has increased, resulting
in economies of scale and the preservation of margins.
The following chart shows trends in the issue volumes of Ticket Restaurant ® and Ticket
Alimentation ® in terms of paper and electronic formats in Brazil since 2003, as well as related margins.
1 800
1 600
1 400
1 200
1 000
800
600
400
200
0
2.3% 2.3% 2.1% 2.2%
(in thousands of euros)
2.8%
16
3.2% 3.4%
2003 2004 2005 2006 2007 2008 2009
Paper
Electronic
EBIT /Issue Volume
The following chart shows trends in the issue volumes of the Childcare Voucher ® in terms of
paper and electronic formats in the United Kingdom since 2004, as well as the related margins.
300
250
200
150
100
50
0
2.5%
1.8%
2.6%
(in thousands of euros)
3.1% 3.3%
3.7%
2004 2005 2006 2007 2008 2009
Paper
Electronic
EBIT/Issue Volume