SECTION 1 -

2.6.2.3 Net cash from (used in) investing activities
The amount of net cash used in investing activities rose from €45 million in 2008 to €54
million in 2009.
2009.
Recurring investments remained low, rising slightly from €24 million in 2008 to €30 million in
Development investments increased from €23 million in 2008 to €41 million in 2009,
principally due to the acquisition of Exit in the Czech Republic and purchases of minority interests.
Net cash used in investing activities amounted to €135 million in 2007, which included €125
million of development investments, which principally consisted of the acquisitions described in note
2 to the pro forma financial statements included in section 10.2.1 of this prospectus.
In 2009, the Group’s disposals totaled €17 million in 2009, an increase compared to €2
million in 2008. The main disposal in 2009 was the sale of 33.33% of Prepay Solutions’ shares to
MasterCard in February.
2.6.2.4 Net cash from (used in) financing activities
The Group used €35 million in financing activities in 2009, down from €137 million in 2008.
The €137 million in net cash used in financing activities in 2008 results from the centralized cash
management of the Accor group and is related to the fluctuations in intra‐group current accounts.
The €35 million in net cash used in financing activities in 2009 results from intra‐group financing
transactions that will not continue once New Services will be an independent company. The
difference between 2008 and 2009 reflects transactions between New Services and the Accor group’s
hotel business and is not, therefore, indicative of future trends.
Dividends paid by New Services to the Hotels business and, principally, Accor (pursuant to
Accor’s dividend policy, which require subsidiaries to pay approximately 90% of net income before
interest expenses) declined from €175 million in 2008 to €165 million in 2009. These dividend levels
are, however, not representative of New Services’ future dividend policy (see section 7.3.2 of this
prospectus for a description of the dividend policy the Group intends to adopt following the
Transaction).
2.6.3 Funds from operations
The Group’s funds from operations rose by 13.2% at constant scope of consolidation and
exchange rates to €184 million in 2009, but reported funds from operations declined by 15.2% as a
result of the negative impact of exchange rates, in particular the devaluation of the Venezuelan
bolivar fuerte.
Growth in funds from operations at constant scope of consolidation and exchange rates is a
key indicator for the Group. It is calculated as follows:
(in millions of euros) 2007 2008 2009
EBITDA 345 396 363
Net financial expense (92) (87) (104)
Income tax expense (78) (83) (77)
Elimination of non‐cash revenue and expenses included in
EBITDA 2 9 3
Elimination of provision movements included in net financial
expense, income tax expense and non‐recurring taxes (11) (18) (1)
Funds from operations 166 217 184
(%)
Reported growth in funds from operations N/A 30.7% (15.2%)
Growth in funds from operations at constant scope of
consolidation and exchange rates N/A 23.7% 13.2%
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