SECTION 1 -

Issue volume growth is at the center of a virtuous circle that the Group believes could allow it
in the medium‐term to generate normative double‐digit annual percentage growth in funds from
operations. 16 Issue volume growth is a driver of cash flow generation, because:
• it generates operating revenue growth through commissions on additional vouchers,
as well as revenues from value added services that should be developed as issue
volume increases;
• it produces significant economies of scale due to the shift from paper to electronic
solutions 17 (after amortization of the initial investment); the Group will seek to move
to a 50/50 split between paper and electronic products by 2016, compared to 70/30
today; the longer‐term objective is a 20/80 split;
• it increases the float 18 (in absolute value) and, accordingly, financial revenue; and
• it can be achieved with limited recurring capital expenditures; the Group believes that
its annual recurring capital expenditures should be on the order of €30 to €40 million
in the coming years, assuming no significant acquisition; this includes ongoing
maintenance expenditures, as well as investments relating to the creation of new
products (estimated at €1 to €2 million per product), and geographical expansion
(estimated at €2 to €3 million per new country).
The prospect of the Transaction and the need to better adapt the definition of the
performance indicators to the Services Business led the Company to define objectives different from
those presented in the 2008 annual report of Accor S.A. (“Accor”). The Company decided to adopt a
normative issue volume growth objective, which is the driver for its revenue growth and its cash flows
(see section 2.2 of this prospectus).
The Company confirms that its previously announced objective to conduct acquisitions in an
amount of €100 million each year no longer seems appropriate. The Company’s acquisition strategy is
not based on a quantitative objective, but will instead reflect potential opportunities as well as its
financing capabilities.
The objectives described above are based on data, assumptions and estimates that the
management of New Services considers reasonable. These data, assumptions and estimates are likely
to change or be modified due to uncertainties arising in particular from the economic, financial,
competitive and regulatory environment. The occurrence of certain risks described in section 3, “Risk
Factors,” would have an impact on the Group’s activities, financial condition and results of operations,
and on its ability to meet these objectives. New Services can provide no assurances regarding its
ability to achieve the objectives described in this prospectus.
1.4 History
1.4.1 Three key stages in the Company’s development
1.4.1.1 From an innovative idea to a successful economic model
The meal voucher made its first appearance in the United Kingdom in 1954. In 1962, Jacques
Borel International launched the Ticket Restaurant ® , the first meal voucher in France, and creation of
the Credit‐Repas company. Five years later, a French law was passed creating the legal framework for
16
For a detailed description of “funds from operations” see section 2.2.3 of this prospectus and the note
entitled “Ratios and key pro forma indicators” in the pro forma financial statements included in section
10.2.1 of this prospectus.
17
For a description of the regulation of the Group’s electronic payment solutions, see section 1.11.2 of this
prospectus.
18
For a description of negative working capital requirements (the float) see section 2.6.4 of this prospectus
and note 23.1 to the pro forma financial statements included in section 10.2.1 of this prospectus.
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