2007 Annual Report

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(1)Loyalty Marketing. Loyalty Marketing. Abo-Service International AMV GmbH Admiralitätstrasse 58 - 20459 Hamburg - Germany Tel. +49 40 377 000 ADLPartner Hispania Plaza de Castilla 3, 16° D1 - 28046 Madrid - Spain Tel. +34 902 36 26 11 ADL Servicos de Fidelização Alameda Franca, 1439/212 São Paulo - SP - 01422-001 - Brazil Tel. +51 11 30647637. CALYPTUS - Design by www.profil-design.com. 3, rue Henri Rol-Tanguy 93100 Montreuil - France Tel. +33 (0)1 41 58 72 03 Fax +33 (0)1 41 58 70 53 www.adlpartner.com. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. 2007 Annual Report. Disclaimer: This document is a free translation and an extract of the original French Annual Report 2007 and of the French consolidated financial statements. Only the French version is legally binding. A copy of the whole Annual Report 2007 (in French) or of the consolidated financial statements (in French) may be obtained inter alia either on the ADLPartner’s website (www.adlpartner.com), or on demand calling +33(0)1 41 58 72 03, or by email [email protected].

(2) Message from the Chairman of the Executive Board. The value of the portfolio, net of taxes (Group share), can be broken down as follows:. (thousands of euros). 12/31/2007 (2). • France • International Total Discontinued activities TOTAL VALUE OF THE OPEN-ENDED PORTFOLIO. At international level, ADLPartner is maintaining its strategy for selectivity in its commercial investments, with the Group recording €14.8 million in revenues, compared with €15.1 million in 2006. Resized with the end of commercial investments in the UK and the sale of our 50% stake in ADLPartner Switzerland, activities. 02. ADLPartner - 2007 annual report. 5,323. 69,049. 60,424. 1,371. 2,749. 70,420. 63,173. have focused on the most buoyant markets. In Germany, we have given priority to developing telemarketing, and its gradual replacement of mailings. In Spain, the improvement in performances, notably with the deployment of marketing solutions operations, is promising. For Brazil, the test phase is continuing with a view to reliably determining the potential for development on this market. These good overall operational performances illustrate the relevance of the strategy implemented over the last few years and the soundness of our fundamentals, based on the Group’s good financial health. The balance sheet is healthy and balanced, while cash flow is clearly positive, coming in at €14.2 million, up €2.7 million on the previous year. Based on shareholders’ equity and the audited value of the active open-ended subscription portfolio (Group share), net asset value is up 18.7% to €83.6 million, representing €19.6 per share on the basis of the number of shares outstanding (excluding treasury stock), compared with €16.9 one year earlier.. The value of the portfolio (Group share), plus consolidated shareholders’ equity (Group share), represented net asset value (Group share) that rose from 70.5 million euros as of December 31, 2006, to 83.7 million euros as of December 31, 2007, an increase of 13.2 million euros for the period (+18.7%). Net asset value can be analyzed as follows:. (thousands of euros). 12/31/2007. 12/31/2006. Total. Group share. Minority interests. Consolidated shareholders’ equity. 17,916. 13,236. 4,679. 12,600. 7,280. 5,320. Value of the open-ended portfolio (net of taxes). 71,785. 70,420. 1,365. 64,542. 63,173. 1,369. NET ASSET VALUE. 89,701. 83,656. 6,044. 77,142. 70,453. 6,689. Total. Group share. Minority interests. In light of these satisfactory results, the Management Board has decided to submit a dividend of €0.23 per share for approval at the general shareholders’ meeting on 13 June 2008, representing an increase of 15%.. Consolidated financial statement. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. In France, business, up 4.6% to €99.1 million, is benefiting from the now complete integration of services and skills from France Abonnements and ADLPartner, which merged at the end of 2005, and the adaptation of know-how to the various distribution channels, with the internet, which offers promising development prospects, leading the way. This strategic movement is contributing to improvements in performance, both commercial, with additional services offered to our partners, and operational, with higher quality and returns.. 55,101. 5,012. (1) Restated (reclassification of new activities shut down or currently being sold off: UK and Switzerland). (2) Incorporating the impact of the harmonization of the valuation method for open-ended subscriptions managed for the company in France (€2,282,000 impact not taken into account at 31 December 2006). Dear Shareholders, In 2007, ADLPartner confirmed and further strengthened its strategy. A quick look over the past year shows that we achieved our goal this year. Indeed, ADLPartner has significantly improved its performance levels, with operating income up 57.4% to €10.9 million and net income (Group share) climbing 245% to €6.0 million. These results are based on continued growth in the Group’s revenues, up 3.7% to €113.9 million.. 12/31/2006 restated (1). 64,037. 19.

(3) Our objective for 2008 is to ensure a long-term focus for ADLPartner’s development. At the start of this year, this dynamic development was reflected in the acquisition of OFUP’s assets, primarily comprising the brand, the agreements with universities and high schools, and the sales network. This operation represents a key opportunity for ADLPartner to further strengthen its market shares on the 15-25 year-old target, who represent major press consumers and are very open to the internet. There are many synergies. Optimizing our resources and rationalizing our organization will of course enable us to manage our costs even more effectively.. Aware of OFUP’s current image, ADLPartner plans to relaunch its commercial activities with a return to the primary “public service” mission to distribute press subscriptions to the world of education. The effects of our development strategy will be seen over time. While the ramping up of commercial investments and the integration of OFUP will push profitability down over the current year, our concrete actions will enable us to continue improving our profitability as of 2009. I would like to thank all of our staff, as well as our shareholders, for their confidence, trust and loyalty. Jean-Marie Vigneron Chairman of the Executive Board. The dovetailing of our services, the combination of our skills and our new opportunities for partnerships represent clear benefits for successfully turning OFUP around.. Message from the Chairman of the Executive Board. 03. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. The Group is looking ahead to 2008 with confidence, and intends to accelerate its business growth. In order to achieve this, ADLPartner is ramping up its commercial investments on its core business, both in France and internationally, capitalizing on its marketing know-how and its application on the various distribution channels..

(4) Key figures for 2007 Highlights in 2007 In 2007, ADLPartner achieved strong growth in its earnings, confirming the relevance of its strategic choices. Its development has primarily been built around two strategies: the adaptation of know-how on the various distribution channels and selectivity in international commercial investments.. Gross sales volume represents the value of subscriptions and other products sold, while net sales (which are determined on the basis of the relevant professional status for subscription sales) only include the amount of the compensation paid by magazine publishers. With subscription sales, net sales thus actually correspond to a gross margin, since the cost of magazines sold is deducted from the amount of sales recorded.. At international level, the Group has consolidated its positions on the most buoyant markets. Spain has seen an improvement in performances, with the deployment of marketing solutions operations, while Germany has maintained an encouraging rate of growth, with the conversion of operations to the telecard channel and the development of cross-selling. In the UK, commercial investments have been ended in line with the strategy to optimize resources. Brazil is still in a test phase, before the validation of its potential for growth. Open-ended subscriptions Fixed-term subscriptions Books, articles, audio and video Other. France Spain. 6.9. 7.2 30.5. 154.1. 54.1. Breakdown of gross business volume (€’000,000) By product type. 04. ADLPartner - 2007 annual report. Germany Brazil. 19.8. 0.8. 218.4. Breakdown of gross business volume (€’000,000) By region. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Gross sales volume or net sales. France has achieved good commercial performances. Growth on new technologies has been confirmed, with the strengthening of the internet and telecard (20% of recruitment for the open-ended subscription offering). The development of the business has also been accompanied by the recruitment of new partners and the more effective capitalization on marketing know-how..

(5) 300. 113.9. 120. 234.9. 250. 245.9. 221.4. 107.1. 109.9. 2005. 2006. 100. 200. 80. 150. 60. 100. 40. 50. 20. 0. 0. 2005. 2006. 2007. Gross business volume (€’000,000). 2007. Revenues (€’000,000). Over. 30 years experience. 12. 6.01. 6. 10.86 10. 5. 6.90. 8. dimension. 136. 4. 6.06 6. 3. 4. 2. 2. 1. 0. 1.74 0.77. 0. 2005. 2006. 2007. Operating income (€’000,000). 2005. 2006. 2007. Net income, Group share (€’000,000). million contacts initiated in 2007 More than. 3 million orders per year 2,8 million active subscriptions in 2007. 12. 90. 10. 75. 83.6 70.4 65.4. 8 6. 60.4. 63.2. 70.4. 60 45. 4. 30. 2. 15. 0. 0. 2005. 2006. 2007. Portfolio value, Group share (€’000,000). 2005. 2006. 2007. Net asset value, Group share (€’000,000). Key figures for 2007. 05. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. An international.

(6) Leading player for operational marketing Specialized in relational marketing, ADLPartner designs, markets and implements services to build loyalty, reactivate and coordinate client relations on its own behalf or for its major partners (banks, retailers, etc.).. Launched in Germany in 2006, the telecard represents a vehicle for generating calls to a call center for subscription sales. Used more and more often instead of mailing operations, the telecard saw strong growth in the number of contacts carried out at international level over 2007 (+183%).. For close to 30 years now, ADLPartner has been developing its concept around two key areas of expertise: experience of the magazine press world and expertise on marketing techniques for communication and promotion. On its own behalf or sporting the colors of its partners, the Group has built up specific know-how in line with two goals: - Coordinating and building loyalty among retail clients: With extensive files on retail clients, commercial partners are harnessing ADLPartner’s loyalty marketing expertise for the recruitment of press subscriptions, whether open-ended or discount. - Recruiting magazine press subscribers: Through its expertise on the various promotional techniques, ADLPartner. 06. ADLPartner - 2007 annual report. is able to recruit new subscribers from all “socio-professional categories” for magazine publishers. Consistent offering ADLPartner has a high level of “capital” in terms of its marketing know-how, and it is constantly being updated and enhanced by the various teams that are experts on the three categories of solutions: Open-ended subscriptions The recruitment of subscribers is combined with a system for direct debits based on set schedules, with each subscription tacitly renewed each month. With a favorable change in this offering, the recruitment operations developed in 2007 through new channels (online sales and telemarketing) achieved highly encouraging results over the year.. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Ramping up the telecard.

(7) Two goals. Magazine publishers. Subscriber recruitment and loyalty building. Key accounts. (Banking, insurance, mass retail, etc…). Client loyalty building and coordination. Turnkey service for loyalty building and client relationship management. Rollout on all channels (offline marketing, online marketing) Loyalty-building offering around press subscriptions. Books, articles, audio and video This represents a distance selling service for cultural products (books, audio, video) and practical items focused on health, wellbeing and leisure. Capitalizing on its wide range of offerings, ADLPartner is meeting objectives for the coordination, recurrence, personalization and strengthening of the client relationship, making it possible to develop the value of the “client capital” more effectively.. Extensive expertise and a presence on all distribution channels Historically, ADLPartner has operated on two main distribution channels: mailing, which uses the company’s own base or that of partners for recruitment on products and services, and discount inserts, for the recruitment of clients through the discounts offered. The merger in December 2005 with France Abonnements has made it possible to develop know-how and diversify distribution channels, notably through the development of telemarketing and the internet.. - France Abonnements site, recruiting subscriptions in the company’s name. In this respect, the Group has increased its focus on prospecting through telemarketing and new media, supplementing commercial actions carried out as mailings and inserts. In 2007, the telecard and internet represented genuine driving forces, with a growing contribution to revenues. In this way, more than 210,000 openended subscriptions have already been recruited on these new channels.. Over the last two years, the deployment of know-how on new technologies has helped strengthen the appeal of the various offerings, while continuously improving the marketing techniques applied. On the internet, ADLPartner has developed three original models: - Emailing, making it possible to capitalize on the company’s own base, targeting a conversion into product sales, - Online newsstand, for recruitment on open-ended subscriptions through partnerships,. Leading player for operational marketing. 07. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Fixed-term subscriptions This formula offers a subscription over fixed term, generally for one year, at a significantly discounted price. At the end of the first subscription, clients receive a commercial proposal from the publisher by mail offering them the opportunity to renew their subscription. This technique is widely used on a base of clients that are fans of promotional offers (games, sweepstakes). It also makes it possible to address the market for loyalty programs, implemented by partners on an “earn” basis, i.e. awarding points for any new order, and a “burn” basis, i.e. offering subscriptions in return for loyalty “points”..

(8) Qualitative growth strategy. The total value of the portfolio of subscriptions held is thus determined by cumulating all the values attached to all subscriptions. Portfolio value is corrected for any latent tax. The value of the portfolio, plus consolidated shareholders’ equity, represents net asset value.. 08. ADLPartner - 2007 annual report. Foundations for balanced development Recurrence of the subscription portfolio The sustainability of ADLPartner’s business model is founded on the recurrence of subscriptions, guaranteeing steady and sound growth. With historical data spanning over 10 years, the Group is able to reliably calculate the average lifespan of open-ended subscriptions, a key visibility element for determining the subscription portfolio’s potential at the start of each year. Strengthening of fundamentals in France In France, ADLPartner is continuing to further strengthen its business model with the diversification of its services on new sales channels and the growing. development of new partnerships. These trends are being accompanied by a proactive adaptation of marketing techniques and an acceleration in the use of new technologies, including the telecard and internet. Other actions are being looked into and starting to be launched. More specifically, the “marketing solutions” range looks promising, with development set to pick up pace over the next few years. For instance, this concerns the implementation of the Group’s sales and marketing techniques in order to reactivate customers that have become inactive. Resizing of international activities International activities, resized following. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Net asset value (NAV) The value of the portfolio of open-ended subscriptions is calculated by determining the present value of the future net revenues these subscriptions will generate throughout their useful life. The life curve of subscriptions recruited via a promotional operation makes it possible to determine the residual life expectancy of the remaining subscriptions accurately. The net contribution still to be received from residual subscriptions corresponding to an operation is computed by applying to the number of remaining subscriptions the average revenues observed and the margin on direct costs (with discounts deducted). The present value of this contribution, calculated by applying the money market rate, gives the value of this number of subscriptions.. ADLPartner is continuing to develop its core business both in France and internationally around two key strategies: capitalizing on its marketing know-how and applying it on the various distribution channels..

(9) Leading partners Banking. Retail. Services. Distance selling. Major assets and first-rate partners. Des partenaires de référence. • Close ties with leading press publishers in France. In Spain, new services are being offered and tested out on the reactivation of databases. In this way, marketing solutions operations are generating a strong level of interest among Spanish card issuers. Several operations have been launched, with encouraging results. In Germany, efforts are focusing on developing new distribution channels. The Group is developing original tele-. marketing actions and looking to capitalize on opportunities for cross-selling by introducing certain innovations into its commercial policy. In Brazil, the Group has continued with its test phase in order to obtain response rates and lifespans guaranteeing a satisfactory level of profitability on operations and optimizing its product mix. A further series of tests were launched at the beginning of 2008 on new distribution channels. The Group has remained particularly attentive to the level and quality of its commercial investments.. • ADLPartner works with 120 press publishers; • Over 350 titles are offered.. • Quality of active client files • For the company: active file with around 3 million clients; • For partners: access to several million clients within the framework of a loyalty marketing strategy.. • Unique know-how on direct marketing • From designing messages to optimizing response rates; • From boosting sales to segmenting approaches; • From optimizing client relations to capitalizing on the client capital; • Established know-how, applicable for other cultural products.. Qualitative growth strategy. 09. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. the decisions taken on the UK and Switzerland, are expected to see a significant reduction in commercial investments. In line with its strategy for selectivity, the Group is focusing on profitability, with various actions targeting markets with the best potential for development..

(10) Outlook. In 2008, ADLPartner is committed to improving its profitable growth. Strategy to acquire market shares in France Centered around its core business, the Group’s priorities in France are to acquire market shares by further strengthening its dynamic commercial development. In France, the Group’s strategy is founded on enhancing the appeal of its solutions and the commitment to ramping up its activities through the deployment of its solutions across a wider range of distribution channels. It is being accompanied by opt-in recruitment and greater use of the company-owned base.. 10. ADLPartner - 2007 annual report. Alongside this, ADLPartner has set itself an objective to continue with the developments launched in 2007 in terms of building up more in-depth services on books, objects, audio and video and marketing solutions. Selectivity at international level At international level, the arbitrage approach on commercial investments has reached a first stage in the process to turn the international subsidiaries around. The results for 2007 confirm the dynamic improvement in economic profitability achieved over the last two years, as well as the strategic choices made for future years.. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. ADLPartner’s primary objective is to improve its profile for profitability over the long term. This commitment is based on an established business model, focused on optimizing the portfolio through strengthening partnerships in France and continuing to roll out the selective investment strategy at international level. Its implementation was pursued in 2008 with a first external growth operation, thanks to the acquisition of OFUP’s assets..

(11) Attractive assets offering strong synergies with ADLPartner’s business model. Dynamic target. Unique network in France. 15-25 year olds: • 1.4 million high school students • 2.6 million university students. • Original access to the press • Network able to be deployed on a large scale at low cost. Penetration in French high schools and universities. Strong brand ready to be capitalized on directly. • Strong presence since 1972 • Significant acquisition of market shares. • Reputation • Domain names • High-potential brand. Offerings dovetailing effectively with one another, with new opportunities for partnerships. Acquisition of OFUP assets, a major opportunity At the start of 2008, the Group’s development was combined with the acquisition of assets from OFUP Education, including the brands and domain names. This external growth operation is contributing to reinforcing the Group’s positions on the 15-25 year-old segment, who represent major press consumers and are very open to the internet.. Present on the market for selling press subscriptions to high school and university students and teachers since 1972, OFUP Education has forged and maintained close and lasting ties with the main “opinion leaders”. This acquisition will enable the Group to make the growth of its portfolio even more dynamic over the long term. It represents a natural development for ADLPartner on a magazine press subscription market in which the Group has a major competitive advantage. This operation is opening up direct access to a target market of 1.4 million high school students, 2.6 million university students and 1.5 million people in the national education system, a client base that ADLPartner was only marginally able to reach up until now.. Relaunch based on OFUP’s historical fundamentals ADLPartner aims to return to OFUP’s historical foundations in order to further strengthen buy-in in the world of education and among the main press publishers. Working closely with these publishers as well as universities, high schools and the various student associations, the Group aims to move back to OFUP’s core business, i.e. the distribution of press subscriptions under exclusive referencing and pricing conditions for the world of education.. With major synergies on costs (reallocation and optimization of resources, rationalization of the organization, etc.) and revenues, this operation will create value over the medium term.. Outlook. 11. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Resized following the decisions taken on the UK and Switzerland, international activities should see their investments scaled back. In Germany, as in France, the focus will be on developing new distribution channels, such as the telecard, with the Group remaining attentive to opportunities for cross-selling. In Spain, the Group will be working to improve profitability on mailings, at the same time as developing reactivation services for certain partners. As far as Brazil is concerned, tests to identify the products that are best suited to the local market will continue to be carried out, with a limited budget..

(12) Stock market and shareholding ADLPartner is committed to providing its shareholders with lasting profitability and a satisfactory return on investment, with this commitment based on clear and transparent communications.. Voting rights: 42.92%. Publishers Clearing House Voting rights: 41.23%. Treasury stock Public Voting rights: 15.85%. Shareholder dashboard Listing market. Euronext Paris (France). ISIN. FR0000062978 - ALP. Number of shares. 4,500,000. Parent company net income. €3,147,000. Total dividend (after considering treasury stock). 35.14% 25.67%. €982,000. Payout rate. 31,2%. Dividend per share. €0.23. Yield. 1,6%. Share price: High Low Year-end. 5.41%. € 15.49 € 11.48 € 14.24. MARKET CAPITALIZATION (AS OF 12/31/2007). 33.77%. Change in the share price 120,000. Breakdown of the capital and voting rights as of December 31, 2007. 64,080,000 €. €35. Volume Closing price. €30. 100,000. €25 80,000 €20 60,000 €15 40,000 €10 20,000. €5. 18 /01 /08. 09 /02 /07. 17 /01 /06. 14 /02 /05. €0. 27 /01 /04. 02 /01 /03. 0. The Executive Board has submitted a proposal for the Annual Shareholders’ Meeting, convened on June 13th, 2008, for a dividend per share of €0.23 for 2007, up 15% compared with €0.20 in 2006.. 12. ADLPartner - 2007 annual report. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Vigneron family group.

(13) Consolidated financial statement. 13. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Consolidated financial statement as of December 31, 2007.

(14) Consolidated financial statements. Consolidated balance sheet Assets Thousands of euros. 12/31/2007. Goodwill. 12/31/2006. 12/31/2005. 172. 172. 172. Intangible assets. 1 371. 1 697. 1 930. Tangible assets. 4 744. 5 053. 5 097. 281. 667. 640. Deferred tax assets. 2 946. 4 580. 4 948. Non-current assets. 9 514. 12 168. 12 787. Other long-term investments. Inventory Trade receivable Other receivables. 5 159. 5 161. 3 550. 31 112. 29 922. 26 515. 4 660. 4 486. 5 882. Cash and cash equivalents. 14 166. 11 511. 10 738. Current assets. 55 098. 51 080. 46 685. Total assets. 64 612. 63 248. 59 472. 12/31/2006. 12/31/2005. Thousands of euros. 12/31/2007. Capital. 7 001. 7 001. 7 001. Consolidated reserves. 5 257. 3 644. 2 499. Consolidated net income. 5 658. 1 956. 1 031. Shareholders' equity. 17 916. 12 600. 10 531. . Group share. 13 236. 7 281. 5 038. 4 679. 5 319. 5 493. . Minority interests Long-term provisions. 164. 395. 371. Financial debt. 440. 924. 1 214. 987. 1 006. 1 126. 1 591. 2 326. 2 711. Deferred taxes Non-current liabilities Short-term provisions. 216. 259. 550. Tax, personnel and fringe benefits. 10 226. 12 126. 7 793. Payables. 34 155. 35 044. 35 325. Financial debt. 240. 303. 2 423. Other debt. 268. 591. 138. Current liabilities. 45 106. 48 322. 46 230. Total shareholders' equity and liabilities. 64 612. 63 248. 59 472. 14. ADLPartner - 2007 annual report. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Shareholders’ equity and liabilities.

(15) Consolidated financial statements. Thousands of euros. 2007. 2006 restated *. 2005 restated *. 113 916. 109 842. 107 098. 0. 0. 28. Input costs. (22 877). (23 130). (22 565). Personnel costs. (19 827). (19 928). (20 580). External charges. (55 160). (54 708). (53 269). Taxes. (1 163). (1 167). (1 122). Depreciation and amortization. (1 025). (1 002). (950). Provisions. (1 533). (1 188). (1 091). Other operating income (expense). (1 476). (1 822). (1 487). Operating income. 10 857. 6 897. 6 063 229. Net sales (excluding VAT) Other income. Income from cash and cash equivalents. 765. 319. Cost of gross financial debt. 19. (29). (27). Cost of net financial debt. 784. 290. 202. Other financial income (expense). (74). (119). 111. (5 303). (3 228). (2 785). 6 264. 3 840. 3 591. (605). (1 885). (2 560). Net income. 5 658. 1 956. 1 031. . Group share. 6 012. 1 745. 772. . Minority interests. (353). 210. 259. Basic net income (Group share) per share (euros). 1,43. 0,42. 0,19. Diluted net income (Group share) per share (euros). 1,41. 0,41. 0,18. Tax charge Net income before income from activites discontinued or being sold Income (loss), net of taxes, on discontinued activities. * The British and Swiss subsidiaries have been recorded under discontinued operations or operations currently being sold off. The figures at 31 December 2007 are therefore compared with the restated figures for 2006 and 2005.. Consolidated financial statement. 15. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Consolidated statement of income.

(16) Consolidated financial statements. Statement of consolidated net cash flows 2007. 2006. 2005. Consolidated net income (including minority interests). 5 658. 1 956. +/- Net depreciation, amortization and provisions (excluding items linked to current assets). 1 054. 798. 757. 402. 337. 126. +/- Calculated (expense) income linked to stock options and related items -/+ Capital gains losses on disposal of assets Cash flow after cost of net financial debt and tax + Cost of net financial debt. (806). 16. 25. 6 308. 3 108. 1 939. (784). (243). (107). 5 303. 3 233. 2 856. Cash flow before cost of net financial debt and tax. 10 828. 6 098. 4 688. - Taxes paid. (4 277). 454. (2 623). +/- Change in working capital requirements linked to activities (including debt linked to employee benefits). (3 833). (2 342). (1 758). 2 718. 4 210. 306. (462). (811). (1 996). +/- Tax charge (including deferred taxes). Net cash flow generated by activities - Funds paid for acquisition of tangible and intangible assets + Funds received from sale of tangible and intangible assets +/- Impact of changes in the consolidated entity +/- Change in loans +/- Other flows linked to investing activities Net cash flow used in investing activities. 1. 9. 23. 67. (342). (1 501). 39. (36). (252). 227. (1 181). (3 726). 447. 25. (118). 582. + Sums received upon exercise of stock options -/+ Acquisition and resale of treasury stock - Dividends paid to group shareholder. 537 (839). - Dividends paid to minority shareholder. (3). + Funds received linked with new loans - Repayment of loans (including lease finance agreements). 1 100 (281). (342). (122). 621. 199. 10. +/- Other flows linked to financing activities. (287). (176). 0. Net cash flow related to financing activities. (339). (297). 1 406. 48. 92. (85). - Net financial interest paid (including lease finance agreements). +/- Impact of fluctuations in currency exchange rates Change in net cash. 16. 1 031. 2 654. 2 824. (2 099). Cash at the beginning of the year. 11 507. 8 683. 10 782. Cash at the end of the year. 14 162. 11 507. 8 683. ADLPartner - 2007 annual report. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Thousands of euros.

(17) Consolidated financial statements. Change in consolidated shareholders’ equity Group share Capital. Shareholders’ equity as of 01/01/06. 7 001. Parent company surplus*. Consolidated reserves **. 11 021. (12 984). Translation adjustment. Net income for the year. 5 038. 94. Income for the year. Total. Minority interests. Total consolidated entity. 5 493. 10 531. 210. 1 955. (3). (3). (174). (174). 94 1 745. 1 745. SCI Rue de Chartres Dividend paid Capital paid out. 94. Impact of treasury shares. (18). (18). (18). Impact of stock options. 101. 101. 101. Impact plan of attribution of bonus shares. 237. 237. 237. Change in the consolidated entity. (68). (68). ADLPartner Italia's liquidation. 152. 152. Shareholders' equity as of 12/31/06. 7 001. Allocation of net income. 11 021. (12 486). 1 745. 2 389. (644). (1 745). Translation adjustment. 102. Income for the year. (275) 152. 5 319. 12 600. (353). 5 659. 102 6 012. Dividend paid. 7 281. (207). (839). 6 012. 102. (839). Capital paid out. (839) (287). (287). Impact of treasury shares. 438. 438. 438. Impact of stock options. 162. 162. 162. Impact plan of attribution of bonus shares. 220. 220. 220. (139). (139). (139). Impact of sale of ADLPartner Suisse Shareholders' equity as of 12/31/07. 7 001. 12 571. (12 347). 6 012. 13 237. 4 679. 17 916. * Paid-in capital + legal reserve + other reserves + retained earnings ** Group reserves + translation adjustment. Consolidated financial statement. 17. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Thousands of euros.

(18) Comptes consolidés. Gross sales volume. Net asset value. Gross sales volume represents the value of subscriptions and other products sold, while net sales (which are determined on the basis of the relevant professional status for subscription sales) only include the amount of the compensation paid by magazine publishers. With subscription sales, net sales thus actually correspond to a gross margin, since the cost of magazines sold is deducted from the amount of sales recorded, whereas with other products sold, they correspond to net sales in the usual sense of the term.. The portfolio of open-ended subscriptions managed by the Company and its subsidiaries counted 2,586,459 units as of December 31, 2006, and totaled 2,775,751 subscriptions as of December 31, 2007 (Including subscriptions that continue to be managed in connection with subsidiaries whose commercial investments have been stopped or that are intended to be sold off, which represented 69,295 subscriptions at 31 December 2007). It should be noted that all Group companies hold the financial rights related to each open-ended subscription.. Gross sales volume is understood before any discount or cancellation. That is why it represents the most stable and homogeneous indicator of the Group’s business.. The value of the portfolio of open-ended subscriptions, net of taxes (Group share), rose from 63.2 million euros as of December 31, 2006, to 70.4 million euros as of December 31, 2007. This increase in real asset value is not reflected in the consolidated financial statements. The value of the portfolio of open-ended subscriptions may be calculated by determining the present value of the future net revenues these subscriptions will generate throughout their useful life. These revenues may be determined in a precise manner by using the statistical information accumulated by the Company over several years concerning the behavior of such subscriptions in France and in its subsidiaries.. Gross sales volume totaled 245,888,000 euros in 2007, compared with 234,851,000 euros in 2006. Gross sales volume can be broken down as follows. By geographic region (thousands of euros) France Abo Service International ADLPartner Hispania. 2007. 2006 restated*. 218,364. 206,710. 19,838. 21,376. 6,939. 6,007. 747. 758. ADLPartner Brésil International TOTAL. 27,524. 28,140. 245,888. 234,851. By product offering (thousands of euros). 2007. Open-ended subscriptions. 154,022. 2006 restated* 144,392. Fixed-term subscriptions. 54,166. 55,874. Books-articles-audio-video. 30,506. 29,901. Other offerings TOTAL. 7,194. 4,683. 245,888. 234,851. * The British and Swiss subsidiaries have been recorded under discontinued operations or operations currently being sold off. The figures at 31 December 2007 are therefore compared with the restated figures for 2006.. 18. ADLPartner - 2007 annual report. The life curve of subscriptions makes it possible to determine the residual life expectancy of the subscriptions accurately. The net contribution still to be received can be computed by applying to the number of remaining subscriptions the average revenues observed and the margin on direct costs (with discounts deducted). The present value of this contribution, calculated by applying the money market rate, gives the value of this number of subscriptions. The total value of the portfolio of subscriptions held can be determined by cumulating all the values attached to all subscriptions. These portfolio values are then corrected for any latent tax. Finally, only the Group share is recognized in the value of the subscriptions portfolio.. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. Key performance indicators.

(19) Message from the Chairman of the Executive Board. The value of the portfolio, net of taxes (Group share), can be broken down as follows:. (thousands of euros). 12/31/2007 (2). • France • International Total Discontinued activities TOTAL VALUE OF THE OPEN-ENDED PORTFOLIO. At international level, ADLPartner is maintaining its strategy for selectivity in its commercial investments, with the Group recording €14.8 million in revenues, compared with €15.1 million in 2006. Resized with the end of commercial investments in the UK and the sale of our 50% stake in ADLPartner Switzerland, activities. 02. ADLPartner - 2007 annual report. 5,323. 69,049. 60,424. 1,371. 2,749. 70,420. 63,173. have focused on the most buoyant markets. In Germany, we have given priority to developing telemarketing, and its gradual replacement of mailings. In Spain, the improvement in performances, notably with the deployment of marketing solutions operations, is promising. For Brazil, the test phase is continuing with a view to reliably determining the potential for development on this market. These good overall operational performances illustrate the relevance of the strategy implemented over the last few years and the soundness of our fundamentals, based on the Group’s good financial health. The balance sheet is healthy and balanced, while cash flow is clearly positive, coming in at €14.2 million, up €2.7 million on the previous year. Based on shareholders’ equity and the audited value of the active open-ended subscription portfolio (Group share), net asset value is up 18.7% to €83.6 million, representing €19.6 per share on the basis of the number of shares outstanding (excluding treasury stock), compared with €16.9 one year earlier.. The value of the portfolio (Group share), plus consolidated shareholders’ equity (Group share), represented net asset value (Group share) that rose from 70.5 million euros as of December 31, 2006, to 83.7 million euros as of December 31, 2007, an increase of 13.2 million euros for the period (+18.7%). Net asset value can be analyzed as follows:. (thousands of euros). 12/31/2007. 12/31/2006. Total. Group share. Minority interests. Consolidated shareholders’ equity. 17,916. 13,236. 4,679. 12,600. 7,280. 5,320. Value of the open-ended portfolio (net of taxes). 71,785. 70,420. 1,365. 64,542. 63,173. 1,369. NET ASSET VALUE. 89,701. 83,656. 6,044. 77,142. 70,453. 6,689. Total. Group share. Minority interests. In light of these satisfactory results, the Management Board has decided to submit a dividend of €0.23 per share for approval at the general shareholders’ meeting on 13 June 2008, representing an increase of 15%.. Consolidated financial statement. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. In France, business, up 4.6% to €99.1 million, is benefiting from the now complete integration of services and skills from France Abonnements and ADLPartner, which merged at the end of 2005, and the adaptation of know-how to the various distribution channels, with the internet, which offers promising development prospects, leading the way. This strategic movement is contributing to improvements in performance, both commercial, with additional services offered to our partners, and operational, with higher quality and returns.. 55,101. 5,012. (1) Restated (reclassification of new activities shut down or currently being sold off: UK and Switzerland). (2) Incorporating the impact of the harmonization of the valuation method for open-ended subscriptions managed for the company in France (€2,282,000 impact not taken into account at 31 December 2006). Dear Shareholders, In 2007, ADLPartner confirmed and further strengthened its strategy. A quick look over the past year shows that we achieved our goal this year. Indeed, ADLPartner has significantly improved its performance levels, with operating income up 57.4% to €10.9 million and net income (Group share) climbing 245% to €6.0 million. These results are based on continued growth in the Group’s revenues, up 3.7% to €113.9 million.. 12/31/2006 restated (1). 64,037. 19.

(20) Loyalty Marketing. Loyalty Marketing. Abo-Service International AMV GmbH Admiralitätstrasse 58 - 20459 Hamburg - Germany Tel. +49 40 377 000 ADLPartner Hispania Plaza de Castilla 3, 16° D1 - 28046 Madrid - Spain Tel. +34 902 36 26 11 ADL Servicos de Fidelização Alameda Franca, 1439/212 São Paulo - SP - 01422-001 - Brazil Tel. +51 11 30647637. CALYPTUS - Design by www.profil-design.com. 3, rue Henri Rol-Tanguy 93100 Montreuil - France Tel. +33 (0)1 41 58 72 03 Fax +33 (0)1 41 58 70 53 www.adlpartner.com. WorldReginfo - 91e90e26-6f3d-4a74-9c70-64a642333f68. 2007 Annual Report. Disclaimer: This document is a free translation and an extract of the original French Annual Report 2007 and of the French consolidated financial statements. Only the French version is legally binding. A copy of the whole Annual Report 2007 (in French) or of the consolidated financial statements (in French) may be obtained inter alia either on the ADLPartner’s website (www.adlpartner.com), or on demand calling +33(0)1 41 58 72 03, or by email [email protected].

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