Message from Michel David - Weill - Interview with Patrick Sayer

	Message from Michel David-Weill Chairman of the Supervisory Board

To the Shareholders,

At this time last year, the economy was facing one of its most profound crises and Eurazeo found itself operating under particularly diffi cult conditions. Yet even then, I expressed a message of confi dence: confi dence in your Company and confi dence in its team.

Where do we stand one year later?

The paths to restoring growth are still very narrow, and the imbalances generated by the crisis are far from over. Despite these uncertainties, the principles of Eurazeo’s strategy have helped it through this diffi cult period under favorable conditions and enabled it to emerge even stronger. Those principles are: the choice to not maintain any structural debt at Eurazeo level and to retain a solid fi nancial structure; the desire to keep our investments well diversifi ed; and a strin- gent selection process which guarantees of the high quality of our assets.

A solid financial structure

In 2009, Eurazeo sought to strengthen its fi nancial structure, notably through the optimized sale of its investment in Danone. Overall, the transactions carried out during the year enabled us to increase Eurazeo’s cash holdings and to signifi cantly reduce our exposure to listed securities. Steps were taken to optimize or enhance the fi nancial structure of Group companies when it made sense. Overall, the Group’s financial structure is strong, although the continued growth of our financial resources must remain a goal.

High quality assets

Eurazeo’s portfolio consists of quality assets, with a good balance between defensive and growth assets (Accor services, B&B Hotels, Elis, ANF, etc.) and assets more sensitive to environment changes (Accor Hotels, Europcar and Rexel). The first type of investments helped cushion the impact on Eurazeo of the economic crisis. The latter in turn have even greater upside potential now that the necessary adjustments have been made. During this difficult period, Eurazeo’s teams’ hard work alongside the management of each company was a determinant factor.

An even more selective investment process

Eurazeo had the opportunity to study a number of investment projects all year long. Rigorous due diligence, however, convinced that it was still too early to return to the market, especially in light of our goal of optimizing the utilization of our resources. But the deal flow is growing steadily and the reopening of markets should provide opportunities: in our investment activity, bottoms of economic cycles have traditionally been good times to invest.

Shareholder structure

In terms of ownership, as I had announced at the Shareholders’ Meeting in May 2009, Société Civile Hausmann-Percier, which included some of Eurazeo’s historical shareholders, was dissolved in late 2009. These shareholders therefore became direct shareholders of Eurazeo. Most of them also became direct parties to the existing shareholders’ agreement. I am delighted by the stability of Eurazeo’s strategic shareholder base, not only the quasi-family shareholders, but the Crédit Agricole Group and a number of long-term shareholders as well, some of whom are, moreover, represented on the Supervisory Board

Changes in the Supervisory Board

In light of the renewal of certain of its members, a change in the Supervisory Board will be proposed to the Shareholders’ Meeting. Three new members will join the Board: Anne Lalou, Georges Pauget and Bertrand Badre. Conversely, Beatrice Stern, Noel Dupuy, Jean-Pierre Rosso, Henri Saint Olive and Theodore Zarifi will leave the Board. I wish to thank them in particular for the contribution they have made all these years. Marcel Roulet will be appointed a non-voting member (censeur), while Jean-Philippe Thierry and Georges Ralli, previously non-voting members, will also be leaving the Board. Overall, the Board has in large part been renewed and the number of its members has been reduced from fourteen to twelve in order to increase effectiveness. The number of non-voting members has been reduced from four to three.

Share performance

Eurazeo’s stock had one of its best years ever in 2009, with an increase of 51%. Admittedly, this increase followed a significant drop, but over a longer period, Eurazeo shares were up 17% over five years and 55% over ten years. But we should avoid any misplaced satisfaction: much still remains to be done to catch back up to the share price seen in 2007 and to reveal the full potential of your Company.

Dividend

Despite the period we have just gone through, Eurazeo remains true to its policy of distributing regular dividends. The Board has approved a dividend of €1.20 per share, which may be paid, at the option of each shareholder, either in cash or in shares. The dividend will be accompanied by the distribution of one bonus share for every twenty shares held.