SECTION 1 -

3.3 Market risks
3.3.1 Exchange rate risk
The Group is subject to exchange rate risk arising from the translation for accounting
purposes of its issue volumes, revenue and operating profit in each country. These exchange rate
risks are not covered by hedging instruments.
A 10% variation in the exchange rate of major currencies would have the following impact on
Group EBIT: Brazil (BRL) €8.1 million, Venezuela (VEF) €3.3 million, Mexico (MXP) €1.7 million and
Romania (RON) €1.4 million. In 2009, exchange rate variations had a significant impact on the
Company’s financial statements (see section 2.4 of this prospectus, “Comparison of fiscal years ended
December 31, 2009 (pro forma) and December 31, 2008 (pro forma)”).
A large portion of the Group’s business is carried out in countries whose functional currency
is not the euro, the Group’s reporting currency. Group policy is to invest cash generated by activities
in the currency of the country in which the associated products are issued.
Real cash flows from non‐euro countries mainly involve dividends paid by subsidiaries to the
parent company, which can be subject to fluctuations between the currency of the originating country
and the euro. The Company does not, as of the date of the admission of its shares for trading on
Euronext Paris, have hedging instruments to cover currency rate fluctuations. However, the Group
may decide to hedge such exposure, mainly through the use of currency futures.
3.3.2 Interest rate risk
Interest rate fluctuations directly affect the Group’s financial revenue. Based on a float at
December 31, 2009 of €2,032 million (see note 23.1 to the pro forma financial statements in section
10.2.1 of this prospectus), an average fluctuation of 100 basis points would have a €20.3 million
impact on financial revenue.
At December 31, 2009, the Group’s pro forma net financial debt was €303 million (see note
20 to the pro forma financial statements in section 10.2.1 of this prospectus and, for a description of
the conditions of the Company’s credit agreements, see section 2.6.6.2 of this prospectus). An
average fluctuation of 100 basis points would have a €3 million impact on the Group’s pre‐tax
operating income, including the impact on financial revenue indicated above.
The Company does not, as of the date of the admission of its shares for trading on Euronext
Paris, have hedging instruments to cover interest rate risk.
3.3.3 Credit risk and counterparty risk
The Group is exposed to the credit risk of banks and financial institutions in which it invests
its cash. The failure or deterioration in the financial position of one of its counterparties could result
in a financial loss. In order to reduce counterparty risk, New Services:
• carries out transactions with counterparties the Group perceives to be of the highest
quality in the relevant country;
• diversifies its counterparty portfolio;
• sets credit ceilings for each counterparty; and
• carries out a monthly reporting procedure to track the different types of
counterparties and their credit worthiness (based on their credit ratings).
The Group’s policy is to invest cash in the currency in which Tickets Restaurant ® and its other
products are issued. As a result the Group is subject to country risk, which could have an impact in
the event of a financial crisis affecting one or several of the countries in which New Services operates.
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