SECTION 1 -

The Group’s working capital requirements are structurally negative, since most services
vouchers are prepaid (i.e., the majority of customers pay for the vouchers before the date that New
Services must redeem them). This provides the Group with significant amounts of cash. The Group
pursues a conservative investment strategy in order to limit risk (see sections 2 6.5 and 3.3.2 of this
prospectus).
The Company believes that it has adequate liquidity at its disposal to meet its requirements,
even if it were to receive a rating below BBB+ but still “solid investment grade”. In such a case, the
financing agreements that will be entered into prior to the Completion Date of the Transaction would
require it to maintain a minimum leverage ratio greater than or equal to 3.00 (see section 2.6.6.2 of
this prospectus).
2.6.2 Cash flow
The Group’s cash flow from operations experienced regular growth for several years before
declining in 2009, principally due to foreign exchange effects. The Group’s use of cash in investing
activities has remained low, despite several acquisitions. The following table presents the principal
items in the Group’s pro forma cash flow statement during the period between 2007 and 2009.
(in millions of euros) 2007 2008 2009
Net cash from operating activities 336 322 282
Net cash from (used in) non‐recurring items (5) (17) (146)
Net cash from (used in) investing activities (135) (45) (54)
Net Cash from (used in) financing activities (77) (137) (35)
Effect of changes in foreign exchange rates (40) (23) (37)
Net increase (decrease) in cash and cash equivalents 79 100 10
Cash and cash equivalents at beginning of period 1,033 1,112 1,212
Cash and cash equivalents at end of period 1,112 1,212 1,222
Net change in cash and cash equivalents 79 100 10
2.6.2.1 Cash flow from operating activities
Cash flow from the Group’s operating activities consists of funds from operations plus
changes in working capital (i.e., the increase in negative working capital requirements), less the
increase in reserve funds. “Reserve funds” are funds paid by customers for the purchase of vouchers,
which must be maintained in segregated accounts pursuant to regulations in France and Romania (see
section 2.6.5 of this prospectus). Since these funds are not at the Group’s disposal, increases in
reserve funds are recorded as reductions to cash flow from operating activities.
Funds from operations declined to €184 million in 2009 from €217 million in 2008. This
decline was in line with that of EBITDA. See section 2.6.3 of this prospectus.
Working capital requirements declined (negative working capital requirements increased) by
€111 million in 2009 compared with €154 million in 2008. The increase in reserve funds from ordinary
operations was €49 million in 2008 as against €13 million in 2009.
As a result of the foregoing, net cash from operating activities fell to €282 million in 2009
from €322 million in 2008.
2.6.2.2 Net cash from (used in) non‐recurring items
The main non‐recurring item in 2009 was a €114 million transfer of cash and cash equivalents
to reserve funds, principally due to the application of Ticket CESU regulations in France and
regulations in Romania.
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