8 | Strategy Strategy | 9

Strong progress towards the shift to digital The deployment of digital solutions was ac- celerated in 2011. Digital solutions accounted for 41% of the Group's total issue volume, compared with 34% at the end of 2010. In Latin America, which is leading the way in the shift to digital, the deployment of digital solutions totaled 70% in 2011, compared with 59% in 2009. The shift to digital is just getting started in Europe, where digital solu- tions represented 11% of volume by the end of 2011, compared with 6% in 2009.

● A WELL BALANCED FINANCIAL POLICY

Edenred's sound fi nancial position allows the company to pursue a fi nancial policy that aims to achieve a balanced distribution of its free cash fl ow.

• Increase of the dividend amount on a recurring basis in the years to come. The Group proposes to pay out almost 80% of its recurring profi t after tax, by offering a dividend of €0.70 per share(3), up 40% on the €0.50 dividend in 2011.

€1.0 billion Revenue

€257 million

Funds from operations(2)

€306 million

Free cash  ow

€355 million

EBIT

€15.2 billion

Issue volume

58 % Issue volume in emerging

markets

2011 KEY FIGURES

• ISSUE VOLUME (in € billions)

● STRONG GROWTH

(1) Like-for-like (2) Before non-recurring items (3) Dividend subject to approval by shareholders at the Annual Meeting on May 15, 2012

(*) Average annual growth rate

2003 2004 2005 2006 2007 2008 2009 2010 2011 2003 2004 2005 2006 2007 2008 2009 2010 2011

2003 2004 2005 2006 2007 2008 2009 2010 2011 2003 2004 2005 2006 2007 2008 2009 2010 2011

• FUNDS FROM OPERATIONS(2)

(in € millions)

CAGR* +23.9%

CAGR* +10.5%

• EBIT In 2011, EBIT was up to 11.2% to €355 million, in the top part of the target bracket of between €340 and €360 million.

2011 a year of consolidation and growth

In 2011, Edenred consolidated the foundations of its strong and sustainable growth by placing innovation

at the heart of its strategy, while still achieving good results in the short term. The Group confi rmed the

strength of its business model and the relevance of its strategy by performing in line with its forecasts.

● STRONGER FOUNDATIONS

Throughout 2011, Edenred worked on crea- ting the right conditions to better understand its clients' needs, to mobilize employee skills and to nurture the creativity of its teams in order to build a solid base for sustainable growth and to turn marketing and technolo- gical innovation into powerful springboards for growth.

Enable the digital transition Since 2010, no fewer than 18 countries have launched new digital solutions. Dedi- cated teams were trained to prepare the move from paper to electronic media, inclu- ding cards, mobile phones and the Internet, and to make the necessary adjustments to the value chain.

Prepare to develop new countries The mission of the pre-development team consists in assessing the potential of future markets according to socio-economic, regu- latory and business criteria. Between June 2010 and December 2011, 15 countries were analyzed, enabling the Group to confi rm the launch of six to eight new countries by 2016, including one or two as early as 2012.

Create the right conditions for more intensive innovation Edenred is remaining loyal to its pioneering

spirit by placing innovation at the very heart of its strategy more than ever and by orga- nizing itself to stimulate imagination and to encourage the sense of initiative in its ope- rational teams.

• Creation of a group of business deve- lopers, tasked primarily with designing new solutions.

• Opening of the innovation pipeline to encourage sharing. Since the pipeline was opened in July 2011, the Group has identifi ed and examined no fewer than 120 innovative projects.

• Organization of the annual innovation forum, innovation award and innovation fund to encourage and co-fund the launch of the most ambitious projects.

● ACHIEVEMENTS IN LINE WITH THE STRATEGY

2011 saw strong growth in the Group's busi- nesses.

First effects of the organic growth strategy The Group's strategy for organic growth is starting to bear fruit. In 2011, issue vo- lume increased by 9.7% to €15.2 billion. This growth in the issue volume was fueled by the vitality of the emerging markets, where

it grew by a full 17.8% (1) and now accounts for 58% of the global issue volume. Despite the particularly diffi cult economic environment in Europe, Edenred’s issue volume grew by 2.7%. This overall performance is the result of a combination of factors.

• Strong sales activity, resulting in an increase in penetration rates in existing mar- kets of 5.3% in terms of issue volume. This growth is the result of the 1.7 million new benefi ciaries worldwide. By way of example, the number of Ticket Restaurant® benefi cia- ries working for new clients in France grew by 4.5%, i.e. 52,000 benefi ciaries in 2011.

• The faster deployment of new solu- tions, which generated a 0.8% increase in the issue volume. Examples include the successful launch of Ticket Restaurante® in Mexico, which attracted 46,000 new benefi - ciaries in 4 months.

• The increase in program face values, which contributed 3.6% to the growth in the issue volume. This increase is determined by infl ation, which was high in certain countries in Latin America and more moderate in Eu- rope. It also depends on decisions taken by employers to increase the program face value as part of their human resources policy.

• Gross debt repayment. In 2011, the Group paid back €100 million, a fi gure that represents one third of its free cash fl ows.

• Targeted acquisitions. The Group is pursuing its strategy to make targeted acquisitions in order to increase its market share in the countries where it is active.