SECTION 1 -

TABLE OF CONTENTS
(continued)
ii
Page
1.8.4 Pricing policy ....................................................................................................................... 39
1.8.5 Contract terms .................................................................................................................... 39
1.8.5.1 Terms of customer contracts ............................................................................. 39
1.8.5.2 Terms of contraction with affiliated merchants................................................. 40
1.9 Transaction processing and information systems ....................................................................... 40
1.9.1 Transaction processing........................................................................................................ 40
1.9.1.1 Processing of paper vouchers ............................................................................ 40
1.9.1.2 Processing electronic vouchers .......................................................................... 41
1.9.2 Suppliers.............................................................................................................................. 42
1.9.3 Information systems ........................................................................................................... 42
1.9.3.1 Systems .............................................................................................................. 42
1.9.3.2 IT risk management............................................................................................ 42
1.9.3.3 Impact of the separation of the hotel and services businesses on IT
systems............................................................................................................... 42
1.10 Competition................................................................................................................................. 43
1.10.1 The employee and public benefits products and services market...................................... 43
1.10.1.1 Leadership position ............................................................................................ 43
1.10.1.2 Size of target market .......................................................................................... 43
1.10.1.3 Growth potential................................................................................................ 43
1.10.2 The performance products market ..................................................................................... 44
1.10.2.1 A solid position................................................................................................... 44
1.10.2.2 Current size of target market ............................................................................. 44
1.10.2.3 Growth potential................................................................................................ 45
1.11 Regulation.................................................................................................................................... 45
1.11.1 Tax and social regulations ................................................................................................... 45
1.11.1.1 General............................................................................................................... 45
1.11.1.2 French Regulations............................................................................................. 45
1.11.1.3 Brazilian Regulations .......................................................................................... 47
1.11.2 Other regulations ................................................................................................................ 47
1.12 Intellectual property.................................................................................................................... 48
1.13 Research and development......................................................................................................... 48
1.14 Property, plant and equipment ................................................................................................... 49
1.15 Insurance ..................................................................................................................................... 49
1.16 Legal and arbitration proceedings............................................................................................... 49
SECTION 2 ‐ MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION...................................................................................................50
2.1 Introduction................................................................................................................................. 50
2.2 Key performance indicators ........................................................................................................ 51
2.2.1 Issue volume ....................................................................................................................... 51
2.2.2 Revenue .............................................................................................................................. 52
2.2.2.1 Operating revenue ............................................................................................. 52
2.2.2.2 Financial revenue ............................................................................................... 53
2.2.3 Funds from operations........................................................................................................ 53
2.3 Methodology for preparation of historical combined and pro forma financial
statements................................................................................................................................... 54
2.3.1 Historical combined financial statements........................................................................... 54
2.3.2 Pro forma financial statements........................................................................................... 54