SECTION 1 -

This sharp increase in the Group’s financial revenue included an increase of €37 million
arising from higher interest rates over the period, which was partially offset by a negative foreign
exchange impact of €4 million (‐3.9%).
2.5.3 EBIT
The Group’s pro forma EBIT was €365 million in 2008, up 14.1% (+€45 million) as compared
to 2007 levels (€320 million) on a reported basis.
At constant scope of consolidation and exchange rates, the increase was €71 million
(+22.2%), reflecting primarily the increase of €37 million in financial revenue. Apart from the financial
revenue impact (caused by favorable interest rate trends), EBIT rose by €34 million at constant scope
of consolidation and exchange rates, reflecting a strong margin on the €72 million increase in
operating revenue at constant scope of consolidation and exchange rates.
The reported figure was affected by an adverse foreign exchange impact of €22 million, of
which €14 million was due to the devaluation of the Venezuelan bolivar fuerte.
The Group’s EBIT represented 2.8% of issue volume in 2007 and 2.9% in 2008.
2.5.4 Net financial expense
In 2008, the Group’s pro forma net financial expense totaled €87 million, as compared to €92
million in 2007, reflecting a decrease of €5 million in financial expense. Net interest expenses are
based on the assumptions used in preparing the pro forma financial statements.
2.5.5 Income tax
The Group’s pro forma income tax expense rose from €68 million in 2007 to €86 in 2008.
The Group’s effective tax rate decreased from 30.5% in 2007 to 28.6% in 2008.
2.5.6 Operating profit before non‐recurring items
Operating profit before non‐recurring items rose by 27.5% from €131 million in 2007 to €167
million in 2008.
2.5.7 Net profit
The Group reported a net profit (before adjusting for non‐controlling interests) of €177
million in 2008, as compared to a net profit of €134 million in 2007.
The main non‐recurring expenses recorded in 2008 were a €9 million provision for New
Services France moving costs and €4 million in restructuring costs.
After taking into account these non‐recurring items, the net income attributable to equity
holders of the parent was €152 million in 2008, as compared to €117 million in 2007.
2.6 Liquidity and capital resources
2.6.1 Introduction
The Group’s business generates significant amounts of operating cash flow. It does not
require significant ongoing investment expenditures and requires low levels of maintenance capital
expenditures. Growth in issue volume and the development of new revenue sources have increased
the Group’s capacity to generate cash flow.
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