6 | Strategy Strategy | 7

EM PL

OY EE

BE NE

FIT S

INCENTIVE AND

REWARDS

EXPENSE MANAGEMENT

EXPENSE MANAGEMENT

PUBLIC SOCIAL PROGRAMS

D ed

ic at

ed fu

nd s

N on

-d ed

ic at

ed fu

nd s

B2B

€121 bn €116 bn €204 bn

B2G B2C

OUR CORE BUSINESS

Edenred sells its solutions to companies on the B2B market. These companies decide on the amount allocated to the vouchers (paper or cards), and then hand them over to the beneficiaries, who are usually the employees. In the B2G segment, Edenred sells solutions to government, local or regional authorities, which then distribute vouchers to their citizens as part of their welfare policies. On the B2C market, it is the consumer that buys the prepaid solution. The party that decides on the amount to be paid out also stipulates the use. Dedicated funds can be allocated to specific uses (examples include restaurants for Ticket Restaurant® and supermarkets for Ticket Alimentación®) in a network of selected affiliated merchants. Non-dedicated funds can be used for a broader selection of purposes in an open network of merchants.

Our market Edenred is the worldwide leader in Employee benefi ts, with a total issue volume of €15.2 billion, on a market for prepaid corporate services that was estimated at €121 billion in 2011. Edenred is an expert in the management of dedicated and non- dedicated funds allocated by companies (B2B), and in the management of dedicated funds allocated by public institutions or governments (B2G). The Group aims primarily to capitalize on Employee benefi ts and to develop its activity in high-growth segments, such as Expense management solutions and Incentive and rewards. Edenred may also show an interest in other segments that are adjacent to its core business on the B2B and B2G markets, which is why the Group invested €15 million in a partnership with the Partech International venture capital outfi t in December 2011.

A TOTAL MARKET OF €441 bn

Created by the demerger from Accor in 2010, Edenred has acquired a unique position in the world of prepaid

corporate services over the past 50 years and has clearly expressed its ambition to build differentiated

solutions and deliver a unique quality of service to meet Customers’ needs, so that it becomes their preferred

partner. The 3-phase strategy laid down in 2010 is designed to meet short-term performance and to build

medium and long-term growth.

Edenred has adopted a long-term strategy that is broken down into three phases to sup- port the company’s progress.

WIN 2010

The fi rst phase, “Win 2010”, consisted in creating the right conditions for the Group to become independent, following the demer- ger from the Accor Group. In 2010, Edenred took a number of signifi cant steps towards building the company's future, including the formal announcement of the company's corporate mission, the creation of a management team and corporate gover- nance policy, the creation of a new identity, the listing on the stock exchange, the expres- sion of its business expertise, the structuring of the offering and the defi nition of specifi c fi nancial targets.

CONQUER 2012

In the second phase, the Group will conso- lidate its foundations in order to create the right conditions for strong and sustainable growth. “Conquer 2012” is based on the im- plementation of two strategic priorities.

Nurturing organic growth We will develop our familiar territories by systematically deploying our know- how and our successful solutions. We will use a number of growth drivers, such as the development of new solutions and new countries, winning over new clients and in- creasing program face values.

Accelerating the shift to digital The shift to digital is a source of innovation and new relationships with our stakeholders. Innovation, in the shape of the digital transi- tion, will allow us to break into new territories of growth, by coming as close as possible to the needs of our clients, benefi ciaries and af- fi liates. We are committed to transitioning half of our issue volume to digital format by 2012.

INVENT 2016

The Group will “Invent 2016” thanks to its better understanding of the relationships with its stakeholders, based on digital technology. With more services for its clients, affi liates and benefi ciaries, Edenred’s offering will be richer and differentiated.

2010-2016 a 3-phase strategy

GROWTH DRIVERS OF ISSUE VOLUME To successfully meet the objective of increasing issue volume by between 6% and 14% per year, Edenred has identifi ed four organic growth drivers:

Increasing penetration rates in existing markets: 2% to 5% growth per year

Creating new solutions and deploying existing ones: 2% to 4% growth per year

Extending geographical coverage: 1% to 2% growth per year

Increasing program face value: 1% to 3% growth per year

Edenred may also make some targeted acquisitions.

GROWTH IN FUNDS FROM OPERATIONS of more than 10% per year on a like-for-like basis.

1

2

3

4

Win 2010

C

on quer 2012

Inv ent 2016