SECTION 1 -

The proportion of operating revenue generated by the employee and public benefits
activities was 67% in France, 80% in Europe (excluding France), 86% in Latin America and 73% in the
rest of the world.
The proportion of operating revenue generated by performance products was 33% in France,
20% in Europe (excluding France), 14% in Latin America and 27% in the rest of the world.
2.4.2.4 Financial revenue
In 2009, the Group’s pro forma financial revenue was €94 million, down 15.0% at constant
scope of consolidation and exchange rates as compared to 2008. On a reported basis, pro forma
financial revenue fell 27.4% as compared to 2008 (€129 million).
This sharp decline in financial revenue included a €7 million negative foreign exchange
impact (accounting for 5.4% of the decline), a €9 million decrease from changes in the Group’s scope
of consolidation (accounting for 7.0% of the decline) and a €19 million decrease (accounting for the
remaining 15.0% of the decline) principally due to lower interest rates over the period.
2.4.3 EBIT
Pro forma earnings before interest and taxes (EBIT) declined by €38 million (10.4%) on a
reported basis, from €365 million in 2008 to €327 million in 2009.
At constant scope of consolidation and exchange rates, the decline was €5 million (1.7%),
including the impact of a €19 million reduction in financial revenue. Excluding the negative financial
revenue impact (caused by adverse fluctuations in interest rates), EBIT rose by €14 million at constant
scope of consolidation and exchange rates, reflecting a strong margin on the €28 million increase in
operating revenue at constant scope of consolidation and exchange rates.
Operating margin (EBIT as a percentage of issue volume) decreased from 2.9% in 2008 to
2.6% in 2009, largely due to the decline in financial revenue.
Operating costs as a proportion of issue volume remained stable at 4.3% in 2009.
Personnel costs totaled €248 million in 2009, virtually in line with 2008 levels (€249 million).
Full‐time equivalent employees increased from 5,723 employees in 2008 to 5,835 in 2009.
Other operating expenses (mainly information technology costs, marketing, advertising and
promotion expenses, professional fees and rental payments) fell from €301 million in 2008 to €291
million in 2009.
2.4.4 Net financial expense
In 2009, the Group’s pro forma net financial expense was €104 million, compared to €87
million in 2008, representing a net increase of €17 million.
This decrease reflects a €19 million foreign exchange loss caused by the devaluation of the
Venezuela bolivar fuerte. On January 8, 2010, the monetary authorities in Venezuela decided to
devalue the bolivar fuerte (VEF). The national currency, which until that time had been fixed at the
rate of 2.15 for 1 USD, is now exchanged at the rate of 4.30 for 1 USD. Given this devaluation of 50%,
the impact on the Group’s income before tax and non‐recurring items amounted to €39 million, €19
million of which was recorded in net financial expenses, reflecting the impact of the devaluation in
the first quarter of 2010.
Net interest expenses reflect the assumptions used in preparing the pro forma financial
statements, described above (see section 2.3.2 and note a “Pro forma adjustments to the income
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