2008 Annual Report

Texte intégral

(1)Loyalty Marketing. Disclaimer: This document is a free translation and an extract of the original French Annual Report 2008 and of the French consolidated financial statements. Only the French version is legally binding. A copy of the whole Annual Report 2008 (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 relations.investisseurs@adlpartner.fr. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 2008 Annual Report.

(2) Message from the Chairman of the Executive Board. We are confident in ADLPartner’s future.. Loyalty Marketing. Message from the Chairman of the Executive Board The results achieved in 2008 highlight the appropriateness of ADLPartner’s strategic direction. In a context of significant marketing investment, we recorded strong sales growth and demonstrated our capacity to maintain our level of profitability, while at the same time successfully integrating OFUP. Although the highly deteriorated macro-economic environment leads us to be cautious and particularly vigilant in our management, we continue to calmly implement our medium and long term development strategy, drawing on strengthened fundamentals and financial resources.. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 2.

(3) 2008 Annual report. Dear shareholders, he 2008 fiscal year featured strong growth, with a gross sales volume up 13.6% to € 278.6 million and net sales up 10.5% to € 125.6 million. In France, we continued to gain market share by stepping up our commercial investments. This dynamic, driven by all offerings, was reflected in the 17% growth in the gross sales volume (up 14.2% on a like-for-like basis) and 14.4% net sales growth (up 11.0% on a like-for-like basis). This strong commercial development enabled us to establish new partnerships. It also resulted in higher value being derived from our marketing expertise and how it is applied to the various distribution channels; the diversification of marketing approaches, in particular on the internet, is making significant progress, either through partnerships or our own operations. 2008 was also marked by the integration in France of OFUP within ADLPartner. This new subsidiary contributed € 6.0 million to the consolidated sales volume and expanded our market share over the 15 to 25 year old target group, a customer base which we only marginally catered for previously. Taking into account significant restructuring and relaunching costs, the integration of OFUP in the consolidated financial statements had a € 1.4 million negative impact on consolidated net income. On international markets, ADLPartner continued to implement its policy of selective commercial investment, which resulted in the termination of our operations in Brazil following an insufficiently convincing testing phase. In Germany, in the face of an environment disrupted by the excesses of a number of direct marketing players, we recorded poor results which have compelled us to rationalize our approach in this market. In Spain, subscription recruitment volumes were marked by encouraging telemarketing operations. As anticipated, the major commercial investments, the integration of OFUP and the weaker performance in Germany adversely affected the profitability of the fiscal year. Net income - Group share thus declined to € 3.5 million, compared to € 6 million in 2007. The Group’s cash positioning which provides the most objective indicator of the soundness of the financial statements has historically never been stronger. Cash rose by € 7 million in 2008, in spite of significant investments, to a position, net of financial debt, of € 20.7 million. This is a reflection of the quality of our balance sheet.. Based on shareholders’ equity and the audited value of the open-ended subscription portfolio (group share), the Group also recorded a strong increase in its Net Asset Value to € 22.5 per share, based on the number of outstanding shares (excluding treasury shares), compared to € 19.6 a year earlier. We are confident in ADLPartner’s future, as justified by our past performance and strengthened by that of 2008. This is the reason why the Executive Board has decided to submit for approval by the Shareholders’ General Meeting on June 12, 2009 the payment of a dividend of € 0.25 per share, an increase of 8.7%. In the face of the uncertain economic climate, ADLPartner remains confident of its profitable development in the medium and long-term. We remain true to the values that have contributed to our Group’s development. They express themselves in our behaviour as entrepreneurs, cautious in our choices, creative in our proposals and responsible in our commitments. We continue to develop based on our strategic direction, drawing on structurally sound fundamentals, as evidenced by the recurrence of the subscription portfolio and our significant financial resources. In 2009, we will have to adapt to an environment that will feature uncertainties as well as opportunities. ADLPartner is in a particularly good position to adapt to the former and make the most of the latter. The long-term outlook of ADLPartner’s strategy is based on the implementation of a committed sustainable development policy. It favors the three fundamental principles of governance and its economic impact, social and corporate responsibility and environmental responsibility. We intend to fully meet the growing expectations of society at large, as reflected today by ADLPartner’s adherence to the Nicolas Hulot Foundation’s partners’ college and the support given to the Foundation’s activities. I wish to thank all our personnel, as well as our shareholders, for their trust and loyalty.. Jean-Marie Vigneron Chairman of the Executive Board. 3. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. T.

(4) 2008 key figures. 2008 Key figures 2008 highlights:. Gross sales volume breakdown. A. 4. In France, the development of expertise in the management of proprietary files and the increase in the number of mail shots from partnerships generated an increase in the sales volume of all offerings. New media (internet and telemarketing) also recorded a marked development and now represents 20% of open ended subscriptions. The 2008 fiscal year also saw the incorporation of the OFUP subsidiary, following the acquisition in February of the business goodwill of the OFUP Education corporation, which notably included the “OFUP” brand and related domain names. It is dedicated to catering for the 15-25 year old market segment, providing strong synergies with the Group’s expertise. This new subsidiary provides ADLPartner with access, using a renowned brand, to a target market of 2.6 million university students, 1.4 million high school pupils and 1.5 million staff members of the French Department of Education, a customer base which the Company only marginally catered for previously. In international markets, ADLPartner continued to implement its policy of selective investment. After completion of a testing program, the Group noted that the conditions for the development of its Brazilian subsidiary were not met and consequently decided to cease its operations in December 2008. The German subsidiary operated in a highly unfavorable environment, due to the economic downtown and the excesses of a number of direct marketing participants in terms of distributing personal data, a practice with which the company had no involvement, which caused consumers to behave increasingly cautiously. In Spain, despite the difficult macro-economic background, subscription recruitment volumes rose due to projects developed through telecards; new partnerships were entered into at the same time as existing partnerships strengthened.. 7.1 36.2. 16.29 170.1. 6.86. 6.00 249.43. 65.2. By type of products Open - ended subscription Fixed - term subscription Books - Marchandises - Audio-Video Others. By geographic region and subsidiary ADLPartner France OFUP Spain Germany. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. DLPartner recorded sustained organic growth in 2008, confirming the appropriateness of its strategic direction. All of its offerings contributed to a satisfactory business performance, driven by stepped up commercial investments, distribution channel diversification and strengthened partnerships..

(5) 2008 Annual report. 300 250. 278.6 234.9. 245.1. 125.6 120. 200. 100 150. Loyalty Marketing. 109.8. 113.7. 80 60. 100. 40 50. 20. 0. Over. 30 years’. experience. 0. 2006 2007 restated restated. 2006 2007 2008 restated restated. Gross sales volume (€ millions). 12. 2008. Net sales (€ millions). 11.34. 10. Over. 130 million contacts initiated every year. 3.4 million orders a year. 3.1 million. active subscriptions in 2008. 7.67. 7.53. 6. 6.01. 6 5 4. 4. 3.47. 3 2. 2. 1. 1.74. 0. 0. 2006 2007 restated restated. 2008. Operating income (€ millions). 120. 2006 2007 restated restated. 2008. 5. Net income (Group share - € millions). 120. 100. 100. 80. 63.2. 70.4. 79.1. 83.7 80. 60. 60. 40. 40. 20. 20. 0. 95.9. 70.4. 0. 2006 2007 2008 restated restated. Portfolio value (Group share - € millions). 2006 2007 2008 restated restated. Net asset value (Group share - € millions). Gross Sales Volume vs. Net Sales The gross sales volume (GSV) 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 amounts of revenue paid by magazine publishers. For subscription sales, turnover thus actually correspond to a gross margin, since the cost of magazines sold is deducted from the amount of sales recorded.. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 8.

(6) An original player in operational marketing. An original player in operational marketing. Specialized in relational marketing, ADLPartner designs, markets and implements services to recruit, activate and build client loyalty on its own behalf or for its major partners.. F. ADLPartner create added value for our partners. Indeed, the implementation of these projects generates marketing and CRM data which is compiled and analyzed by ADLPartner on behalf of its partners.. > Recruiting magazine subscribers:. or almost 30 years, ADLPartner has been developing its concept around two key areas of expertise: experience of the magazine sector and expertise in marketing techniques for communication and promotion. On its own behalf or sporting the colours of its partners, the Group has built up specific expertise, which it has developed in many directions:. Through its expertise in various promotional techniques, ADLPartner is able to recruit new subscribers from all “socio-professional categories” for magazine publishers.. > Coordinating and building loyalty among retail clients:. Drawing on significant expertise, enhanced on an ongoing basis, ADLPartner provides relevant and efficient solutions to companies who wish to optimize their client relationships and thus meet the challenges of winning over and building client loyalty and drawing value from client data. Group operations are organized in the following three categories of offering:. With extensive files on retail clients, commercial par tners are harnessing ADLPartner’s loyalty marketing expertise to prepare and implement innovative activation and loyalty building solutions. In addition to the advantages enjoyed by our partners’ customers, the projects led by. ADLPartner has asserted itself as the European benchmark for direct marketing by press subscription.. Consistent offering. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 6.

(7) 2008 Annual report. MULTIPLE CHANNELS OF EXPERTISE. Turnkey service. for loyalty building and client relationship management. Magazine publishers. Banking, insurance, mass retail…. Recruitment. Loyalty-building. Key accounts. Coordination. Rollout. on all channels (offline marketing, online marketing). Loyalty-building offering. around press subscriptions. Fixed-term subscriptions, the Group’s original business, are marketed under the France Abonnements brand and offer a broad range of magazines and newspapers at significantly reduced prices for a set term, usually twelve months. When the first subscription expires, clients are sent a commercial offering by post by the publisher, suggesting they renew the subscription.. > Open-ended subscriptions Primarily operated in partnership, the recruitment of open-ended subscriptions includes a direct debit system, with collections organized at specified due dates, as subscriptions are renewed by tacit agreement every month. This offering provides access to significant promotions on subscriptions and clients are also given the opportunity to enter exclusive prize draws. This offering is reporting favorable results due to encouraging sales grow th in new channels (online and telemarketing sales).. > Books-Merchandising-Audio-Video This represents a distance selling service for cultural products (books, audio and video) and practical items focused on health, wellbeing and leisure. Capitalizing on its wide range of offerings, ADLPartner is meeting objectives for the coordination, retention, personalization and strengthe-. ning of the client relationship, making it possible to develop the value of the “client capital” more effectively.. Extensive expertise and a presence in all distribution channels ADLPartner capitalizes on real direct marketing expertise in all offline and online distribution channels. The Company’s rollout of its expertise in online channels, initiated in 2005 following the merger with France Abonnements, contributes to improving the Group’s commercial performance and expanding the spectrum of its partnerships. In particular, these new channels complement the offline campaigns in more traditional channels, such as mail shots and discount inserts. This multi-channel diversification has strengthened the attractiveness of our offering, while continuously improving marketing techniques. In 20 08, the Group’s internet operations combined with telecards contributed 20% of openended subscription recruitment.. Development of partnerships with e-tailers In order to meet the expectations of major e-commerce players, ADLPartner created new offerings based on its open-ended subscription formula. ADLPartner offers major e-commerce players the opportunity to build customer loyalty through the A to Z creation of relevant white label offerings, focusing on the quality follow up of client relationships. Alapage. com, LaRedoute.fr, Mistergooddeal. com and Pixmania have selected this process, which enable them to increase the attractiveness of their offering by boosting the number of references on their website.. 7. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. > Fixed-term subscriptions.

(8) An expansion and value creation strategy. An expansion and value creation strategy ADLPartner is continuing to develop its core business both in France and internationally around three key strategies: increasing the number of its partners, capitalizing on its marketing expertise and applying it to the various distribution channels.. > Revival of OFUP. 8. 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 10 years, the Group is able to reliably calculate the average lifespan of openended subscriptions, a key visibility element for determining the subscription portfolio’s potential at the start of each year.. > Strengthening of positions in France In France, ADLPartner is continuing to further strengthen its business model with the stepped up development of partnerships, due to the enhanced attractiveness of its. offerings and their extension to new distribution channels. The Group is committed to a strategy of achieving value from its expertise and draws on the proactive adaptation of its marketing techniques and the growing use of new technologies, including telecards and the internet. Other actions are under consideration and are starting to be implemented. The “marketing solutions” offering in particular looks promising and should see accelerated development over the next few years. It consists of implementing the Group’s selling and marketing techniques to revive files that have become inactive.. OFUP is well placed to improve its profitability in 2009. Moreover, ADLPartner’s expertise in terms of mail shot communication is gradually being put at the disposal of the new subsidiary in order to benefit from this new client base. At the same time, the OFUP brand and its specific client base will enable the Group to establish new partnerships.. > Selectiveness of international investments In line with its strategy of adding value from international investments, ADLPartner rationalizes its development in the most profitable markets, as illustrated by the cessation at the end of 2008 of commercial activities in Brazil, following inconclusive test results. In 2009, this strategy will be reflected in improved operating processes and reductions in the management costs of subsidiaries in operation.. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. Established in the market of press subscriptions to university and high school students and teachers since 1972, OFUP’s original model provides ADLPartner with new target clients, in the 15 to 25 age bracket, which are dynamic and high volume press consumers. During the 2008 fiscal year, ADLPartner strove to rationalize the management of its new subsidiary and to gradually refocus its commercial activity through an ethical and responsible approach, in particular by renewing deeper relationships with universities and their environment..

(9) 2008 Annual report. Relationships built on trust with mass market brands and clients Long-standing partnerships Banking. Services. Retail. Distance selling. Major development assets • Unique expertise in direct marketing • Loyalty-building, acquisition, enrichment, activation of client database in all media. In Germany, against a difficult background, ADLPartner adapted its model to the new environment and developed original marketing techniques and cross-selling activities, by introducing certain innovations in its commercial policy.. In Spain, ADLPartner continued to develop innovative offerings to reactivate database by providing marketing solutions and telemarketing services. The attractiveness of our offering was reflected in particular by the development of new partnerships.. 9. • Quality of active client files • For the Company: file with up to 3 million addresses • For partners: access to several million clients. • Close ties with leading press publishers in France • 120 publishers, over 350 titles. • High subscription portfolio renewal rate. 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 accurately the residual life expectancy of the remaining subscriptions. The net contribution still to be received from residual subscriptions is computed by applying to the number of remaining subscriptions the average revenues experienced and the margin on direct costs (with discounts deducted). The present value of this contribution, calculated by applying a rate based on the money market rate, gives the value of this number of subscriptions. The total value of the portfolio of subscriptions held is the cumulative value attached to all subscriptions. Portfolio value is corrected for any underlying tax effect. The value of the portfolio, plus consolidated shareholders’ equity, represents net asset value.. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. • Expertise rolled out and applied to other products and services.

(10) Profitable growth outlook. 10. ADLPartner creates value through profitable and dynamic growth, the development of differentiating and difficult to replicate concepts, based on the Group’s strengths and expertise, and its leading position in the market of loyalty-building through press subscription marketing. In order to capitalize on its strengths and core know how as much as possible, the Group’s strategy is based on three key objectives: generating profitable sales growth, aiming for excellence in execution and acting as a socially responsible company with all stakeholders.. T. he development of ADLPar tner h a s a m e d i u m a n d l o n g -te r m outlook and draws on structurally sound fundamentals and solid financial resources. Against a difficult economic background, the company is focussing on segmenting approaches to boost sales, on strengthening positions in France, through portfolio optimization, and drawing value from international investment by giving the priority to business profitability.. Segmenting approaches to boost sales ADLPartner improves the attractiveness of its offerings on an ongoing basis, in order to perfect its marketing techniques and enhance sales grow th. To complement marketing steps such as mail shots and inserts, the Company has been stepping up telemarketing and new media prospecting over the past few years. Internet sales are a major area of ADLPar tner’s develop-. ment. In order to support this strategy, the Group has designed a unique e-mail address collection model. This model is principally based on the organization of lotteries and enables the rollout of online sales, both on the par tners’ ad hoc sites managed by the Group and on the Company’s own we bs i te s (“ f ra nc e -a b o nn e m e nts.f r ” and”plusdemags.com”). The 20 08 f iscal year demonstrated the appropriateness of these strategic. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. Profitable growth outlook.

(11) 2008 Annual report. choices. Results are encouraging, given the continuing development of new media and the recruitment of new partners.. Market share gains in France In France, ADLPartner intends to bolster its commercial strength by making its offering more attractive on an ongoing basis, the growing diversification of distribution channels and the development and extension of existing partnerships. This policy is being supported by opt-in re cruitme nt and gre ate r use of the company-owned client base; in particular, the Group has set itself an objective of boosting the development of its BooksMerchandising-Audio-Video offerings, by extending the catalogue of products sold. With respect to OFUP, ADLPartner will strive to ensure the future of its subsidiary. Following a 2008 fiscal year of business rationalization and synergy implementation, the Group intends to bolster its commercial activity by strengthening relationships with the education sector. These steps should contribute to returning OFUP’s operations to break even.. Rationalization of international development: At international level, ADLPartner intends to implement a selective and controlled investment strategy in higher added value regions. In Germany, priority is given to developing cross-selling, strengthening operations in the telecard channel and recruiting new partners. The economic and legal developments in this country have compelled ADLPartner to be vigi-. ADLPartner continuously improves the attractiveness of its offerings in order to improve its marketing techniques and bolster business growth.. ”. lant regarding forthcoming changes to the legal framework of direct marketing, in order to react proactively in adapting its model. In Spain, the emphasis will be on improving profitability, at the same time as strengthening partnerships and the attractiveness of offerings, especially with regard to database reactivation services.. Opening up new markets In order to boost its performance, the Group remains open to new development opportunities, with a view to acquiring and developing new offerings in new channels, if the latter contributes to boosting both growth and profitability.The quality of ADLPartner’s financial position ensures the viability of this strategy.. ADLPartner becomes a member of the Nicolas Hulot Foundation As a company committed to responsible development, ADLPartner’s activities are intended to fully meet the growing expectations of society at large regarding environmental risks. The Company implements best practices to limit its energy consumption and provide for the collection, sorting and recycling of the paper waste it produces. This policy is supported by an ISO 14001 certification process and an unfaltering commitment to certified suppliers. As a company aware of all the steps that can be taken to save resources, ADLPartner supports the initiatives of the Nicolas Hulot Foundation.. 11. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. “.

(12) Stock market and shareholding ADLPartner continues its active dividend distribution policy despite the difficult economic environment. The Group intends to maintain its position as a growth stock and high-yield security and to provide its shareholders with a satisfactory return on investment.. Vigneron family group. Shareholder dashboard. Voting rights: 42.85 %. Listing market. Euronext Paris (France). Voting rights: 41.19 %. ISIN. FR0000062978 - ALP. Treasury stock. Number of shares. 4,500,000. Parent company net income. 4,805 K€. Total dividend (after considering treasury stock). 1,059 K€. Publishers Clearing House. Public. Voting rights: 15.96 %. 35.14 %. 25.87 %. 22 %. Dividend per share. € 0.25. Yield. 3.4 %. Share price:. 33.77 %. High Low Year-end. € 14.24 € 7.07 € 7.40. Market capitalization (as of 12/31/2008). Breakdown of the capital and voting rights as of 31 december 2008. 33,300,000 €. Change in the share price 125. €35. Volume (€ millions) Closing price. €30 100 €25 75. €20. €15. 50. €10 25 €5 0. €0. Nov. May 05. Nov. May 06. Nov. May 07. Nov. May 08. Nov May 09. The Executive Board has submitted a proposal for the Annual General Meeting, convened on June 12, 2009, for a dividend per share of €0.25 for 2008, up 8.7% compared with €0.23 in 2007.. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 12. Payout rate. 5.21 %.

(13) Loyalty Marketing. 13. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 2008 Consolidated financial statements.

(14) Consolidated financial statements. Consolidated balance sheet ASSETS (€ thousands). 2008. 2007. Non-current assets 342. 172. Intangible assets. Goodwill. 3,558. 1,371. Tangible assets. 4,951. 4,744. Other long-term investments Deferred tax assets Non-current assets. 325. 281. 1,558. 2,946. 10,735. 9,514. Current assets Inventory Trade receivables Other receivables. 5,159 31,112. 5,884. 4,660. Cash and cash equivalents. 21,357. 14,166. Current assets. 64,746. 55,098. Assets held for disposal. 314. Total assets. 75,795. 64,612. SHAREHOLDERS’ EQUITY AND LIABILITIES (€ thousands) Capital Consolidated reserves Consolidated net income. 2008. 2007 7,001. 7,001. 10,933. 5,257. 1,391. 5,658. 19,325. 17,916. 16,719. 13,236. 2,605. 4,679. Long-term provisions. 467. 164. Financial debt. 220. 440. Deferred taxes. 664. 987. 1,351. 1,591. Shareholders’ equity of which: • Group share • Minority interests. Non-current liabilities. Non-current liabilities Current liabilities Short-term provisions. 200. 216. Tax, personnel and fringe benefits. 10,606. 10,226. Trade payables. 41,338. 34,155. Financial debt. 452. 240. other debt. 856. 268. 53,453. 45,106. Current liabilities Liabilities held for disposal Total shareholders' equity and liabilities. 1,666 75,795. 64,612. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 14. 4,383 33,122.

(15) 2008 Annual report. Consolidated statement of income Other income. 2008. 2007 restated*. 125,599. 113,692. 0. 0. Purchases. (26,541). (22,790). Personnel costs. (23,829). (19,827). External charges. (60,556). (54,557). Taxes. (1,391). (1,162). Depreciation and amortization. (1,031). (1,025). Provisions. (2,905). (1,517). Other operating income (expenses). (1,817). (1,476). 7,529. 11,339. 905. 748. Operating income Income from cash and cash equivalents Gross cost of financial debt Net financial income Other financial income (expense) Tax charge Net income before income from discontinued operations or operations held for disposal Net income (loss) on discontinued operations or operations held for disposal. 14. 65. 920. 813. (20). 17. (5,713). (5,354). 2,716. 6,814. (1,325). (1,156). Net income. 1,391. 5,658. • Group share. 3,466. 6,012. (2,075). (353). Basic net income (Group share) per share (¤). 0.81. 1.43. Diluted net income (Group share) per share (¤). 0.81. 1.41. • Minority interests. * The Brazilian subsidiary was recorded under discontinued operations or operations held for disposal in 2008. The results at 31 december, 2008 are therefore compared with the restated figures for the same period of 2007.. 15. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. (€ thousands) Net sales (excluding VAT).

(16) Consolidated financial statements. Statement of consolidated net cash flows (€ thousands). 2008. 2007 restated. Consolidated net income (including minority interests). 1,391. 5,658. + / - Net depreciation, amortization and provisions (excluding items linked to current assets). 1,263. 1,054. 178. 345. 21. (806). 2,853. 6,251. - / + Unrealized capital gains (losses) relating to fair value movements + / - Calculated (expenses) income linked to stock options and related items - / + Other calculated (expenses) income - / + Capital gains (losses) on disposal of assets - / + Dilution gains (losses) + / - Share of Associates’ net income - Dividends (unconsolidated securities) Cash flow after cost of net financial debt and tax - Net financial income + / - Tax charge (including deferred tax) Cash flow before net financial income and tax (A). (813). 5,713. 5,354. 7,646. 10,793. (4,992). (4,277). + / - Change in working capital requirement linked to operations (including debt linked to employee benefits) (C). 7,320. (3,884). = Net cash flow from operations (D) = (A + B + C). 9,974. 2,632. (3,469). (462). 4. 1. - Taxes paid (B). - Funds paid for acquisition of tangible and intangible assets + Funds received from the sale of tangible and intangible assets - Funds paid for acquisition of long-term investments (unconsolidated securities) + Funds received from the sale of long-term investments (unconsolidated securities) + / - Impact of changes in group structure. 67. + Dividends received (equity accounted companies, unconsolidated securities) + / - Movements in loans and advances granted. 582. + Investments grants received + / - Other cash flows from (used in) investing operations = Net cash flow from (used in) investing activities (e). (44). 39. (3,508). 227. + Proceeds from share capital increases . Paid by parent company shareholders . Paid by minority interests in consolidated companies + Sums received upon exercise of stock options» - / + Purchase and sale of treasury shares. 428 (68). 76. (983). (839). (220). (281). - Dividends paid over the fiscal year . Dividends paid to group shareholders . Dividends paid to minority shareholders + Proceeds from new borrowings - Repayment of loans (including lease finance agreements) - / + Net financial interest (including lease finance agreements). 936. + / - Other cash flows used in financing operations. 650 (287). = Net cash flow from (used in) financing activities (f). (335). + / - Impact of fluctuations in currency exchange rates (G). 899. 48. 7,029. 2,654. Cash at the beginning of the year. 14,162. 11,507. Cash at the end of the year. 21,191. 14,162. = Change in net cash (d + e + f + g). (252). WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 16. (920).

(17) 2008 Annual report. Change in consolidated shareholders’ equity Group share. Shareholders’ equity as of 01/01/2007. Capital 7,001. Parent Consolidated Net company reserves income for surplus (1) (2) the year 13,410. Translation adjustment. (13,130). ADLPartner dividends. 5,319. 12,600. (353). 5,659. Total. 0. 7,281. 6,012. 6,012. 102. Net income for the year. Total consolidated entity. 102. (839). 102. (839). “Capital reserve” refund to Abo Service International. 0. (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. Consolidation of ADLP Switzerland’s net loss. (139). (139). (139). Shareholders’ equity as of 31/12/2007. 7,001. Allocation of net income. 12,571. (12,347). 6,012. 3,148. 2,864. (6,012). Translation adjustment. 899. Net income for the year. 3,466. ADLPartner dividends. (983). 13,237. 4,679. 17,916. 0. 0. 899. 899. 3,466. (2,075). (983). 1,391 (983). Impact of treasury shares. (43). (43). (43). Impact of stock options. 162. 162. 162. Impact plan of attribution of bonus shares. (17). (17). (17). Shareholders’ equity as of 31/12/2008. 7,001. 14,736. (1) Additional paid-in capital + legal reserve + other reserves + retained earnings (2) Group reserves + translation adjustment. (8,482). 3,466. 16,721. 17. 2,604. 19,325. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. (€ thousands). Minority interests.

(18) Key performance indicators. Key performance indicators By product offering. Gross sales volume represents the value of subscriptions and other products sold.. (€ thousands). Net sales are represented: > A s regards subscription sales, by the amounts paid by magazine publishers, with sales being generated by the company in its capacity as a press agent. Sales thus actually correspond to a gross margin, since the cost of magazines sold is deducted from the amount of sales recorded, > As regards other products sold, by sales revenue. Gross sales volume is reported before any discount or cancellation. Therefore it represents the most stable and standard indicator of the Group’s performances. Gross sales volume from continuing operations increased by 13.6% to € 278,585 thousand in 2008, compared with € 245,888 thousand in 2007. Gross sales volume can be broken down as follows.. By geographic region and subsidiary (€ thousands) ADLPartner France OFUP France Abo Service International ADLPartner Hispania International Total. 2008. 2007 restated *. 249,430. 218,364. 6,004. 0. 255,434. 218,364. 16,288. 19,838. 6,862. 6,939. 23,150. 26,777. 278,585. 245,141. Open-ended subscriptions. 2008. 2007 restated*. 170,138. 154,238. Fixed-term subscriptions. 65,198. 54,166. Books-articles-audio-video. 36,156. 30,505. Other offerings Total. 7,092. 6,232. 278,585. 245,141. * The Brazilian subsidiary was recorded under discontinued operations or operations held for disposal in 2008. The results at December 31, 2008 are therefore compared with the restated figures for the same period of 2007.. Net asset value The portfolio of open-ended subscriptions managed by the Company and its subsidiaries amounted to 2,698,693 units as of December 31, 2007, and totaled 2,938,625 subscriptions as of December 31, 2008 (excluding discontinued or held for disposal subsidiaries). It should be noted that all Group companies hold the financial rights related to each open-ended subscription. The value of the portfolio of open-ended subscriptions, net of taxes (Group share), rose from € 70.4 million as of December 31, 2007, to € 79.1 million as of December 31, 2008. 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. The life curve of subscriptions recruited by a promotional campaign makes it possible to determine, at any time, the residual life expectancy of the subscriptions with great. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. 18. Gross sales volume.

(19) 2008 Annual report. accuracy. 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 a rate based on 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.. 19. These portfolio values are then corrected for any underlying tax. The value of the portfolio of open-ended subscriptions, net of taxes (Group share), can be broken down as follows:. (€ thousands). Value of open-ended portfolio (exclusive of tax) (Group share) at Dec. 31, 2008. Value of open-ended portfolio (exclusive of tax) (Group share) at Dec. 31, 2007. 73,537. International Total International operations discontinued or held for disposal Total. 64,037. 4,677. 5,012. 78,214. 69,049. 918. 1 371. 79,132. 70,420. The value of the portfolio (Group share), plus consolidated shareholders’ equity (Group share), represented net asset value (Group share) that rose from € 83.7 million at December 31, 2007, to € 95.9 million at December 31, 2008, an increase of € 12.2 million for the period (+14.6%). Net asset value can be analyzed as follows: Dec. 31, 2008. (€ thousands) Total. Group share. Dec. 31, 2007 Minority interests. Total. Group share. Minority interests. Consolidated shareholders’ equity. 19,325. 16,719. 2,606. 17,916. 13,236. 4,679. Value of open-ended portfolio (net of taxes). 80,379. 79,132. 1,248. 71,785. 70,420. 1,365. Net asset value. 99,704. 95,851. 3,854. 89,701. 83,656. 6,044. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. Continuing operations: France.

(20) 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 Tél. +34 902 36 26 11. CALYPTUS - Design by www.profil-design.com. 3, rue Henri Rol-Tanguy 93100 Montreuil - France Tél. +33 (0)1 41 58 72 03 Fax +33 (0)1 41 58 70 53 www.adlpartner.com. WorldReginfo - 70fdc1af-6521-4380-82ec-ecadd61afcbc. Loyalty Marketing.

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