November 27, 2007 12:14 ET

FIMALAC : 2006/2007 recurring operating income up 27,7% like for like

PARIS--(Marketwire - November 27, 2007) - I) 2006/2007 RESULTS (October 1, 2006 to September 30, 2007)

1) Revenue up 20.4% like-for-like

As announced on October 25, revenue for fiscal 2006/2007 amounted to EUR 744.8 million compared with EUR 630.3 million the previous year, representing an increase of 18.2% on a reported basis and 20.4% like-for- like.

Ratings revenue reached EUR 632.3 million, a 21.4% like-for-like increase, while enterprise risk management revenue was EUR 105.1 million, 14.1% higher like-for-like.

2) Recurring operating income up 27.7% like-for-like

Fitch Ratings delivered a robust operating performance, reporting EBITDA** of $338.1 million (excluding Korea Ratings) compared with $264.6 million in fiscal 2005/2006. Algorithmics' EBITDA was a negative $16.5 million versus a negative $19.0 million in 2005/2006.

Fimalac's consolidated recurring operating income in euros amounted to EUR 149.1 million in fiscal 2006/2007, compared with EUR 119.3 million for the previous fiscal year. This represented an increase of 25.0% on a reported basis and 27.7% like-for-like.

3) Attributable profit for the year: EUR 79.5 million

Profit attributable to equity holders of the parent for fiscal 2006/2007 came to EUR 79.5 million. This is not directly comparable with the EUR 531.8 million profit for fiscal 2005/2006, which included EUR 465.1 million in net gains on disposal of the Facom Group and the sale of a 20% stake in the Fitch Group.

4) 2006/2007 dividend: EUR 1.50 per share

At the Annual Shareholders' Meeting on February 12, 2008, the Board of Directors will recommend paying a dividend of EUR 1.50 per share, compared with EUR 1.40 per share for 2005/2006. The dividend will be payable as from February 19, 2008.

II) 2007/2008 OUTLOOK

1) Ratings

It is currently difficult to predict how long the crisis in the credit market will last and how severe it will be, which means guidance for fiscal 2007/2008 can only be issued tentatively. If the credit market continues to contract in the coming months, it will be necessary to exercise caution. However, the crisis should be followed by a more stable environment leading to the restoration of the ratings business' growth drivers.

2) Group Structures

To support the Group's future business development, it has been decided to organize its assets around three intermediate holding companies (Fimalac Services Financiers, Fimalac Information and Fimalac Technologies de l'Information).

This internal restructuring is in line with Fimalac's strategic vision and will maintain shareholders' rights and interests. It is scheduled to be carried out before the end of the year.


The Fimalac share buyback program continued to be implemented as planned, attesting to the confidence of management and the Board in Fitch Ratings' fundamentals and Algorithmics' growth potential.

At November 16, 8.20% of the capital was held in treasury. At that date, Marc Ladreit de Lacharrière's direct and indirect interest in Fimalac stood at 66.25%.

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