Viewpoints 2009 business review Outlook for 2010

Sustainable development 2009 annual accounts

Viewpoints - Friedrich Schock, Virginie Morgon What do you think of Eurazeo’s support? F. S.: We appreciate their encouragement of our long term vision as well as their help in the short term managing the impacts of a crisis that has had a huge impact on a certain number of our markets. The year just ended was a good example. Our teams and those of Eurazeo studied in detail all the levers that could be used immediately to minimize the impact of the crisis. In addition to these immediate measures, we continued to work together on the modernization of the company, a project that began when they first became shareholders in 2007. This is an ambitious project that will create substantial value over the medium term. In 2009, we were able to both reorganize our most important market, Germany, with the creation of four regional divisions in charge of operations and further strengthen our support functions in order to increase the professionalism of some of our processes, such as procurement and yield management. Finally, we initiated a major reorganization of our commercial functions in order to take full advantage of the many growth opportunities in our markets. What do you discuss with APCOA? V. M.: As soon as we acquired a stake in APCOA, we spoke with management about the need to transform the company, whose organization had been highly decentralized from the outset, into an integrated Group in order to take advantage of growth opportunities. This led to the implementation of large projects, such as the reorganization of the company’s management and teams, the overhaul of processes such as purchasing, and the leveraging of commercial initiatives, notably using a market segment-based approach. Along with this long-term vision and in the face of an exceptionally difficult economic environment in 2009, we also encouraged the company to undertake important measures to cut costs. Finally, we assisted the company in its discussions with its creditors. Convinced of APCOA’s potential for value creation, we increased its capital to enable it to continue its development.

	APCOA – Europe’s leading car park management operator - 2009 business review

In 2009, APCOA generated total revenues of E639.5 million, down slightly year on year on a reported basis (0.4%) but up 3.8% on a comparable basis thanks mainly to the contribution on a full year basis of certain new contracts won in 2008, such as the one with the airport in Luton.

The company posted EBITDA of E52.7 million in 2009, down 15.6% from E62.5 million year on year on a reported basis and down 12.8% on a comparable basis. All year long, APCOA was penalized by the decline in foot traffic in malls and passenger traffic in airports, which, combined with minimum rents guaranteed under certain contracts, led to a sharp decline in the company’s profitability. Due to the sharp drop in passenger traffic, and despite the important contribution of the latter to revenues, the Luton contract has weighed heavily on the Group’s results and explains much of the decline in EBITDA compared to 2008. Some segments, such as hospitals, however, held up well, posting revenue growth year on year.

Germany, Denmark, Belgium, the Netherlands and Italy showed resilience, while the United Kingdom, Norway and Sweden were the countries most affected by economic conditions.

Despite the decline in results, the company’s net debt as of December 31, 2009 had increased only moderately over the previous year, at constant exchange rates, thanks to the major efforts undertaken to control working capital.

APCOA also successfully obtained the approval of its banks to adjust its funding conditions, restoring the full financial flexibility the company requires to drive future growth. Under these conditions, Eurazeo and Eurazeo Partners increased the company’s capital by E24 million (of which E20 million for Eurazeo) in February 2010, and pledged to make an additional contribution, if necessary, of up to E16.7 million (E13.9 million for Eurazeo). These funds will be used to finance the company’s growth, including notably the capital expenditures required by the management contract at Heathrow, which got fully underway in early 2010.

The company is continuing to modernize its operations. The year just ended was marked notably by the reorganization of Germany, with a new centralized control center and the creation of four regional divisions in charge of operations, as well as the enhancement of certain central functions such as e-commerce, yield management and purchasing management through new hiring and the development of new tools. Moreover, AP COA recently initiated a major reorganization of its commercial functions in order to take full advantage of the many growth opportunities in its markets.

	Outlook for 2010

In 2010, the gradual recovery of activity in APCOA’s underlying markets, especially airports, may have a positive impact on the company’s results. The management team will, moreover, continue to pursue the company’s modernization by applying the German example to other countries in order to get the company into the best position possible to take advantage of renewed growth. In this context, careful attention will be paid to the reorganization of commercial functions, as winning new contracts is a key factor for the company’s creation of value.

	Sustainable development

> The RWE Group and APCOA have established a partnership in the field of electric mobility. The two companies have launched a joint roll-out of recharging stations for electric vehicles in public parking areas. This will allow drivers to recharge their electric vehicles easily, for example while shopping. Initially, RWE recharging stations will be set up at 20 APCOA parking facilities located at sites in downtown Berlin, such as Alexanderplatz and the Brandenburg Gate. The next step will be the installation of these recharging facilities in RWE car parks in other major cities, such as Hamburg, Dusseldorf, Frankfurt, Stuttgart and Munich.

> Launch of “This parking space can save lives” campaign: established in cooperation with Deutsche Verkehrswacht. APCOA undertakes to pass on the revenue Sustainable development generated by a certain number of parking spaces to pay for better driver education for young drivers, in order to improve road safety.

> Cooperation with BAA to significantly reduce CO2 emissions at Heathrow by optimizing the routing of buses. This cooperation has resulted in the reduction by two thirds of the number of buses and allowed BAA to obtain approval to build a third runway: such approval had been subject to significant commitments to reduce emissions.

> Cooperation with companies specialized in the installation of solar panels to be deployed in some APCOA car parks, to contribute to environmental conservation.

	2009 annual accounts

	In millions of euros as of December 31 2008 2009 Revenues 642.1 639.5 Change +9.0% - 0.4 % EBITDA 62.5 52.7 Parking spaces (in thousands) 1,241 1,298 Number of car parks 5,494 5,738 Employees 4,600 4,356

	(In millions of euros) ASSETS LIABILITIES AND EQUITY     Equity 91 Non-current assets 915 Non-current liabilities 171 Current assets 112 Current liabilities 766 Total assets 1,028 Total liabilities and equity 1,028