FIMALAC : Fiscal 2013 Results

*     Following the change of fiscal year-end to December 31 from September 30, and to facilitate comparisons between accounting periods, pro forma figures are presented for the period January 1-December 31, 2012. Net profit for the fifteen-month transition period from October 1, 2011 to December 31, 2012 totaled €197.8 million, including also a capital gain of €90.7 million realized on the sale of Algorithmics in October 2012.

The healthy profit reported in 2013 largely reflects the excellent performance delivered by Fitch, which is accounted for by the equity method.

The 40% interest held in Groupe Lucien Barrière is also accounted for by the equity method. Fimalac's share of this associate's profit amounted to €10.9 million in 2013, reflecting a resilient performance in a difficult economic environment.

Fully consolidated companies mainly include Vega in the entertainment industry, new acquisitions in the digital sector, the North Colonnade building in London and the Group's holding companies The Digital businesses have been consolidated from the acquisition date.

II) FITCH'S 2013 CONSOLIDATED RESULTS

As shown in the table below, which is presented on a 100% basis, Fitch turned in a very good 2013 performance:

*       Pro forma figures.
**     Based on a comparable scope of consolidation and at constant exchange rates.
***   EBITDA: Earnings before interest, taxes, depreciation and amortization.

Fitch had one of its best years ever in 2013, with revenue increasing 12.5% like-for-like to €740.1 million.

All segments of the rating business generated higher revenues in 2013, led by corporate finance and financial institution ratings, with structured finance ratings enjoying a recovery. Strong gains were achieved in Europe during the year (up 17.7% overall), with growth remaining robust in North America (up 10.1%) and Latin America (up 11.2%).

This robust performance was supported by good cost discipline, leading to an even sharper increase in operating results for 2013, with EBITDA up 22.2% like-for-like to €299.7 million.

Beside the rating activities, subscription-based research services provided by Fitch grew at a notable pace in 2013. Constituting Fitch's second business line, they now account for roughly 15% of its revenue. In today's challenging environment, market participants as well as major international and government institutions are increasingly calling on Fitch's research services to interpret the massive quantities of economic and financial data that are available worldwide.

To meet the credit risk analyst training needs of major financial institutions, banks and insurance companies, Fitch has created a third business line dedicated to specialized credit risk analysis training and learning solutions. This business already accounts for nearly 5% of Fitch's total revenue.

A significant post-balance sheet event was Fitch's acquisition on March 13, 2014 of all outstanding shares in Business Monitor International (BMI), a widely recognized provider of country risk analysis and industry research specializing in emerging and frontier markets. BMI employs around 300 people worldwide, with offices in London, New York, Singapore and Pretoria. The BMI acquisition is consistent with Fitch's strategy of developing the business by meeting the ever-growing needs of public and private-sector market participants.

III) OTHER SIGNIFICANT EVENTS

1)  Creation and development of a Digital Sector

Fimalac holds a 65.2% stake in the recently merged Webedia/TFco group, which in turn owns all outstanding shares in Allociné.

In December 2013, Webedia acquired a controlling interest in Groupe Confidentielles (owner of the 750g recipe website) and Exponaute (a cultural events website). After the balance sheet date, it acquired the foreign company Diwanee and Melberries in France to further extend its offering.

Through these acquisitions, Fimalac has created French seventh largest digital media group - with 17.2 million unique visitors recorded in France in February 2014 - and strengthened its leadership in entertainment and leisure information. Fimalac aims to speed its expansion in the digital media industry, both in France and internationally.

2)  Development of the Entertainment Sector

Fimalac has become a top-tier player in France's entertainment industry through its show production and venue management operations. The aggregate revenue of these two segments (excluding Groupe Lucien Barrière's venue management businesses) exceeded €150 million in 2013.

3)  Lease of the North Colonnade building in London

The remaining vacant floors of the London office building were let to KPMG in early August 2013.

Fully let under long-term leases, the building will provide Fimalac with a secure revenue stream over many years.

IV) DIVIDEND OF €1.90 PER SHARE

At the Annual Shareholders' Meeting on June 17, 2014, the Board of Directors will propose to pay a dividend of €1.90 per share. By comparison, the dividend paid in 2013 in respect of 2012 amounted to €1.80 per share, including a special dividend of €0.30 per share.