1
2
Sales
from reported to like-for-like
(in € millions)
YTD
sept 05
YTD
sept 06
Change
Sales (reported)
382.7
457.4
+ 19.5 %
Currency translation impact ($ and £)
- 6.6
Changes in consolidation scope
(Algorithmics entrance)
- 2.3
SALES (like-for-like)
382.7
448.5
+ 17.2 %
Sales by company
(reported)
(in € millions)
YTD
sept 05
YTD
sept 06
Change
382.4
457.1
+ 19.5 %
Fitch Ratings
331.4
388.8
+ 17.3 %
Algorithmics
51.0
68.3
+ 33.9 %
0.3
0.3
382.7
457.4
FITCH GROUP
Other (Parent company)
SALES (reported)
+ 19.5 %
Sales by company
(like-for-like)
(in € millions)
YTD
sept 05
YTD
sept 06
Change
382.4
448.2
+ 17.2 %
Fitch Ratings
331.4
383.6
+ 15.8 %
Algorithmics
51.0
64.6
+ 26.7 %
0.3
0.3
382.7
448.5
FITCH GROUP
Other (Parent company)
SALES (like-for-like)
+ 17.2 %
Sales by geographic regions
(reported)
YTD
sept 05
%
YTD
sept 06
%
1 USA
210.2
54.9 %
237.4
51.9 %
2 UK
51.3
13.4 %
58.4
12.8 %
3 Germany
13.0
3.4 %
18.5
4.0 %
4 France
8.5
2.2 %
10.4
2.3 %
5 Netherlands
6.9
1.8 %
10.1
2.2 %
6 Switzerland
7.8
2.0 %
9.9
2.2 %
7 Italy
9.4
2.5 %
9.8
2.1 %
8 Spain
7.0
1.8 %
8.8
1.9 %
9 Mexico
7.2
1.9 %
8.2
1.8 %
5.8
1.5 %
6.9
1.5 %
10 Japan
% TOTAL SALES (reported)
85.5 %
82.7 %
From sales
to recurring operating income
(in € millions)
Sales (reported)
Operating expenses
Recurring operating income
YTD
sept 05
YTD
sept 06
382.7
457.4
- 317.2
- 377.4
65.5
80.0
Change
+ 19.5%
+ 22.1%
(reported)
Currency translation impact ($ and £)
- 1.2
2.9
Changes in consolidation scope
(Algorithmics entrance)
RECURRING OPERATING INCOME
(like-for-like)
65.5
81.7
+ 24.7%
Recurring operating income by company
(reported)
(in € millions)
YTD
sept 05
YTD
sept 06
Change
75.8
85.6
+ 12.9 %
Fitch Ratings
96.5
111.7
+ 15.8 %
Algorithmics
- 20.7
- 26.1
- 26.1 %
- 10.3
- 5.6
+ 45.6 %
65.5
80.0
+ 22.1 %
FITCH GROUP
Other (Parent company)
RECURRING OPERATING INCOME
(reported)
Recurring operating income by company
(like-for-like)
(in € millions)
YTD
sept 05
YTD
sept 06
Change
75.8
87.3
+ 15.2 %
Fitch Ratings
96.5
110.0
+
14.0 %
Algorithmics
- 20.7
- 22.7
-
9.7 %
- 10.3
- 5.6
+ 45.6 %
65.5
81.7
+ 24.7 %
FITCH GROUP
Other (Parent company)
RECURRING OPERATING
INCOME (like-for-like)
Operating margin (ROI / Sales)
17.1 %
18.2 %
From recurring operating income
to operating result (reported)
(in € millions)
YTD
sept 05
YTD
sept 06
Change
65.5
80.0
+ 22.1 %
Other operating income and expense
- 5.0
- 2.5
OPERATING RESULT
(reported)
60.5
77.5
Recurring operating income
(reported)
+ 28.1 %
From operating result to net earnings
(reported)
(in € millions)
YTD
sept 05
YTD
sept 06
60.5
77.5
Interest expense and other financial income
(expense)
- 13.3
1.4
Taxes
- 26.9
- 29.1
0.2
1.0
- 1.7
450.7
Operating result
(reported)
Equity in net earnings of affiliated
companies
Net earnings from discontinued operations,
and in process of disposal
Minority interests
-
- 9.8
NET EARNINGS
(reported)
18.8
491.7
Cash and cash equivalents / (net debt) by company
(in € millions)
12/31/2005
09/30/2006
Fitch Group
- 226
- 273
Parent company
- 186
+ 413
Net cash position - Fimalac
- 412
+ 140
Main cash flows of the parent company
from January 1 through September 30, 2006
(in € millions)
Net debt as of 12/31/2005
Facom disposal (January 2006)
- 186
+ 344
Sale of 20 % of Fitch Group (April 2006)
+ 493
BASA and options exercise
+ 48
Fimalac shares buyback
- 265
Dividends (received/payed), other flows
- 21
NET CASH POSITION AS OF 09/30/2006
+ 413
Evolution of the treasury stocks level
since January 1, 2006
Number of treasury stocks
POSITION AS OF 12/31/2005
2006 Buybacks
2 762 131
+ 3 942 828
7.3 % (1)
10.4 % (1)
17.7 %
Service / BASA and options
BASA
Options
- 1 576 805
- 275 039
-
4.2 % (1)
-
0.7 % (1)
Cancellations (reductions in capital)
03/15/2006
05/30/2006
09/19/2006
- 400 000
- 1 700 000
- 1 480 000
-
1.1 % (1)
-
4.5 % (1)
-
3.9 % (1)
- 14.4 %
POSITION AS OF 09/30/ 2006
(1)
(2)
% of capital as of 12/31/2005
% of capital as of 09/30/2006
1 273 115
3.7 %
(2)
Reserved for options : 1.1 %
Reserved for BASA : 0.3 %
Free
: 2.3 %
Fimalac share performance vs. CAC 40 and SBF 120
December 1992 to November 15, 2006
1700
FIMALAC
1500
1 435
1300
1100
900
700
SBF 120
337
500
CAC 40
300
301
100
Fimalac share performance vs. CAC 40 and SBF 120
January 2006 to November 15, 2006
150
145
140
135
130
125
120
115
110
105
100
FIMALAC
137
SBF 120
117
CAC 40
116
"Total Shareholder Return" over 10 years
SBF120 companies
Ranking
TSR
Over 10 years
Annualized
in %
in %
1
Be ne te au
3 738,8%
44,0%
2
Valloure c
2 836,9%
40,2%
3
Eiffage
2 167,6%
36,6%
4
Maure l Et Prom
2 077,3%
36,1%
5
Vinci
1 400,8%
31,1%
6
Unibail
1 101,2%
28,2%
7
C FF Re cycling
1 035,6%
27,5%
8
Are va
999,5%
27,1%
9
W e nde l Inve stisse me nt
913,3%
26,1%
10
Kle pie rre
852,2%
25,3%
11
Bouygue s
731,8%
23,6%
12
Socie te Ge ne rale
704,7%
23,2%
13
Fimalac
663,6%
22,5%
14
C ime nts Français
634,1%
22,1%
15
BNP Paribas
579,6%
21,1%
Source JCF Group
Ordinary dividend per share
1,40
1,25
1,05
0,90
0,95 0,95 0,95
0,74
0,55
0,52
0,48
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
9 months
19
History
Fitch Group structure
Fitch Group
Revenue Growth
In $ Mil
800
$693
700
600
$565
$511
500
$483
$455
400
$356
$305
300
$222
200
100
$24
$156
$169
1998
1999
$43
0
1996
1997
2000
2001
2002
2003
2004
2005
YTD
YTD
Sept 05 Sept 06
Fitch Group
Operating Income Growth (EBIT)
In $ Mil
160
$150
140
$113
120
$110
$106
$96
100
$83
80
$72
60
40
20
$5
$29
$32
1998
1999
$37
$10
0
1996
1997
2000
2001
2002
2003
2004
2005
YTD
YTD
Sept 05 Sept 06
Fitch Group
Sales to Operating Income
YTD
Sept 05
YTD
Sept 06
483.1
565.0
+ 17.0%
254.2
299.6
+ 17.9 %
83.7
107.4
+ 28.3 %
337.9
407.0
+ 20.4 %
145.2
158.0
+ 8.8 %
Profit sharing plan
Depreciation
Intellectual property
28.6
9.3
11.6
27.1
9.7
15.4
- 5.2 %
+ 4.3 %
+ 32.8 %
Operating Income
95.7
105.8
+ 10.6 %
in US$ millions
Revenue
Personnel costs
External expenses
Total charges
EBITDA
% Change
Key Figures by Company
(in US$ millions)
Revenue FITCH GROUP
FitchRatings
Algorithmics
Intercompany revenue
EBITDA FITCH GROUP
FitchRatings
Algorithmics
Operating Income FITCH GROUP
FitchRatings
Algorithmics
YTD
Sept 05
YTD
Sept 06
% Change
483.1
565.0
+ 17.0 %
418.6
64.5
-
480.5
87.8
- 3.3
+ 14.8 %
+ 36.1 %
145.2
158.0
156.8
- 11.6
173.4
- 15.4
+ 10.6 %
95.7
105.8
+ 10.6 %
121.9
- 26.2
138.1
- 32.3
+ 13.3 %
+
8.8 %
26
Fitch Ratings
Overview

A leading global provider of credit ratings, opinions,
research and data for debt issued in domestic and
international markets.

Fitch Research
 A subscription based product that provides access to all of
Fitch Ratings’ global credit ratings and research.

Fitch Training
 A service that provides credit risk training to capital
market participants
Fitch Ratings
Revenue growth
(in millions of US$)
700
$594
600
$502
500
$481
$448
400
$419
$353
$305
300
200
100
0
2001
2002
2003
2004
2005
YTD Sept 05
YTD Sept 06
Global Debt Issuance
($ Volume)
($US Billions)
6,000
5,000
4,000
3,000
2,000
1,000
0
2002
Source: Thomson Financial
2003
2004
2005
YTD Sept 05
YTD Sept 06
Fitch Ratings
Market Share
Fitch Market Share (By Dollar Volume)
100%
90%
89%
89%
80%
70%
60%
50%
40%
65%
53%
66%
51%
30%
20%
10%
0%
Structured Finance
Financial Institutions
FY 2005
YTD Sept 06
Non-Financial Corporates
Fitch Ratings
Revenue by Segment
(in US$ millions)
YTD
Sept 05
YTD
Sept 06
% Change
Structured Finance
224.7
246.7
+ 9.8%
Corporate Finance
147.2
178.8
+ 21.5%
46.7
55.0
+ 17.8%
418.6
480.5
+ 14.8%
Subscriptions /Training
TOTAL FITCH RATINGS
Fitch Ratings
Revenue by Region
(in US$ millions)
YTD
Sept 05
YTD
Sept 06
% Change
North America
248.5
271.3
+ 9.2%
Europe, Middle East & Africa
139.6
173.0
+ 23.9%
Latin America
17.5
20.0
+ 14.3%
Asia Pacific
13.0
16.2
+ 24.6%
418.6
480.5
+ 14.8%
TOTAL FITCH RATINGS
Fitch Ratings
EBITDA and Operating Income
(in US$ millions)
YTD
Sept 05
YTD % Change
Sept 06
Revenue
418.6
480.5
+ 14.8%
EBITDA
156.8
173.4
+ 10.6%
EBITDA Margin
37.5 %
36.1 %
28.4
27.2
6.5
8.1
+ 24.6%
Operating Income
121.9
138.1
+ 13.3%
Operating Income Margin
29.1 %
28.7 %
Profit sharing plan
Depreciation & Amortization
-
4.2%
2006 Accomplishments
Structured Finance

Enhanced analytical model for RMBS market.

Launched a new performance analytics product
SMARTView, for US CMBS, to provide timely monthly
surveillance for all rated deals.

Won The International Securitisation Report’s, Best
International Structured Finance Rating Agency of the
Year award.
2006 Accomplishments
Structured Finance (cont’d)

Credit Derivative Initiative
 Updated VECTOR model for the Structured Credit Market.
 Released a new Rating Analytics Platform for Credit
Derivatives (RAP CD) that provides mark to model pricing
for synthetics CDOs.
 Acquired Reoch Credit, Ltd, and its pricing model
platform.
 Launched Stability Scores, a service that provides
transparency to compare and contrast tranches of
transactions and their relative stability.
 Created Commercial Real Estate CDO team.
2006 Accomplishments
Corporate Finance

Added 250 corporate, financial institution and insurance
mandate ratings during the first nine months of 2006.

Roll-out of Recovery Ratings.

Launched Prism, the first global stochastic Insurance
Capital Model.

Financial Guaranty Capital Model in development.

Expansion into the leveraged loan market.
2006 Accomplishments
Business Development

Continued institutionalization of Fitch into investment
guidelines, risk management systems and trading
platforms.
 80 of the top 100 U.S. investors
 42 of the top 50 public pension fund investors
 19 of the top 50 corporate pension fund investors

Growth in subscription research and data products
Fitch Ratings
Investment in Human Capital
Headcount
2,064
2,100
1,827
1,800
1,500
1,767
1,617
1,350
1,447
1,200
900
600
300
0
12/31/02
12/31/03
12/31/04
12/31/05
09/30/05
09/30/06
2007 Initiatives
Structured Finance Initiatives


Derivative Fitch launch and continued focus on meeting
demands of the credit derivatives market
Release and implementation of new models:



ResiLogic, new US RMBS model
New US CMBS model
Continued focus on EMEA expansion and emerging
markets securitization growth
 Participation in the global growth of Asset Backed
Commercial Paper.
2007 Initiatives
(cont’d)
Corporate Finance

Continued expansion into rapidly growing new markets




Continued expansion in existing markets



Corporate loan ratings
Emerging markets
Covered bonds
The high yield and loan markets
Introduction of new analytical tools and procedures
including new quantitative models and analytics
Focused effort at servicing the burgeoning infrastructure
financing market
Fitch Ratings
Launch of Derivative Fitch
FitchGroup
30,000
25,000
20,000
15,000
10,000
5,000
Cash Bonds
*
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
0
19
Notional Outstanding (USD Trillion)
Fitch Ratings
Credit Derivative Growth Outpacing Cash Market
Credit Derivatives
Source: British Bankers Association, Bank for International Settlements, ISDA
*as of 30 June 2006
Fitch Ratings
Global CDO Market Issuance
(in millions of US$)
350
$322
300
$249
250
200
$157
150
100
50
0
2004
Source: The Bond Market Association
2005
YTD Sept 06
Fitch Ratings
Derivative Fitch Today
Key Features

Credit Ratings & Surveillance

Established & Leading Credit Models

Leading Edge Research

Market Risk Analytics
Fitch Ratings
Expanding Tools and Methodologies Used to Analyze
Credit Stability and Market Risk
Traditional Ratings
- Further granularity of credit risk
Mean default probability
Recovery Analysis
Surveillance
Market Implied Ratings
Scenario & Stress Analysis
Default Risk Modeling
Pre-sale reports
Derivative Ratings
- Ratings and services that
incorporate credit and market
risk
Migration Analysis
Mark to Model Pricing
Correlation
CDS Pricing
Greek Sensitivity Analysis
Stability Analysis
Portfolio Evaluation
Fitch Ratings
Goals

Create and maintain reputation for highest quality
ratings and research

Maintain and grow market share across all key
segments and regions

Enhance pricing flexibility

Continue consistent long-term investment plan

Fitch Ratings secular revenue growth: 10–12%

US: 8–10%

International: 15–20%
47
Algorithmics
Introduction
Algorithmics is an internationally recognized leader in
the development and delivery of enterprise solutions
for the measurement and reporting of risk, and
business applications that enable clients to make riskaware business decisions
Algorithmics
Revenue by Region
(in millions of US$)
YTD
Sept 05
YTD
Sept 06
% Change
North America
19.9
28.8
44.7%
Europe, Middle East & Africa
37.0
46.4
25.4%
Latin America
3.2
3.9
21.9%
Asia Pacific
4.4
8.7
97.7%
64.5
87.8*
36.1%
TOTAL ALGORITHMICS
* Includes inter-company revenue of $3.3 million
Algorithmics
EBITDA and Operating Income
(in millions of US$)
YTD
Sept 05
YTD
Sept 06
% change
64.5
- 11.6
87.8*
- 15.4
+ 36.1%
Profit sharing plan
0.2
- 0.1
Depreciation
2.8
2.5
11.6
14.5
- 26.2
- 32.3
Revenue
EBITDA
Intellectual property
Recurring Operating
Income
* Includes inter-company revenue of $3.3 million
Algorithmics
Highlights

330 software solution clients (30 new)

120 data and content clients

70 of the world’s top 100 banks 1

752 (87 new) professionals in 19 (+1) global offices
Notes:
1 Top 100 banks according to “The Banker”
Algorithmics
2006 Achievements
Growth

53 new licenses

26.7 % revenue growth vs. 2005 (comparable numbers)
Investment in Human Capital

Grew expertise and capacity in services, advisory, sales
and marketing
Recent Media and Analyst Recognition

Risk Technology rankings: #1 in 6 categories

Placed in Gartner’s Leaders Quadrant for Basel II for 2006
Algorithmics
Solution Achievements
Credit and Capital Solutions

108 clients (80 in 2005)
Market Risk Solutions

128 clients (100 in 2005)
Operational Risk Solutions

89 clients (80 in 2005)
Collateral Management Solutions

68 clients (60 in 2005)
Algorithmics
Recognized Leadership
“The broadest and deepest offering available for Basel II ...advanced features and
technology... an integrated approach to market, credit, and operational risk, but also
delivers data and sophisticated analytics/models.“
Source: Celent, February 2006
Algorithmics
Investment Focus
Pursuing our Growth Strategy in 2007





Expanding sales and services to support revenue growth
Establishing presence in new geographical markets
Investing in direct managed service solutions for asset
managers and hedge funds
Developing broader risk solution for the insurance industry
Continued focus on core solutions – completing product
development plans
Algorithmics
2007 Outlook
Market Drivers




Adoption of ‘risk aware’ business applications in financial
services
Increasingly complex financial markets and products which
require more sophisticated tools
Regulation for banks (more countries adopting Basel II), asset
managers and insurance companies (e.g. Solvency II)
Financial institutions’ increasing use of external vendors for risk
solutions
Appendix
57
Fitch Ratings
Glossary of Terms

Asset Backed Security (ABS) - A financial security backed by a loan, lease or receivables
against assets other than real estate and mortgage-backed securities

Collateralized Debt Obligation (CDO) - An investment-grade security backed by a pool of
bonds, loans and other assets. A CDO is unique in that it is comprised of different tranches, each
with a different maturity and risk associated with it.

Collateralized Loan Obligation (CLO) - A CDO backed by a pool of loans. Financial
institutions back this security with receivables from loans.

Commercial Mortgage Backed Security (CMBS) - A type of mortgage-backed security that is
secured by the loan on a commercial property.

Residential Mortgage Backed Security (RMBS) - A type of security whose cash flows come
from residential debt such as mortgages, home-equity loans and sub-prime mortgages
Fitch Ratings
Glossary of Terms (cont’d)





Fitch Prism Capital Model (Prism) - a fully stochastic economic global capital model that
will be used to apply ratings consistency from insurer to insurer.
Fitch RAP CD - Fitch’s Risk Analytics Platform for Credit Derivatives is a breakthrough
global market-risk assessment service that helps investors understand how their CDO
investments trade by tracing price movements back to the changes in the CDOs underlying
portfolio from which they stem.
Fitch Recovery Ratings –A sophisticated approach to measure the primary components of
credit risk: default and loss given default
 Recovery Ratings - the prospects of recovery in the event of a default
 Issuer Default Ratings - The probability that an entity will default on its commitment.
Fitch Stability Scores - CDOs are divided into tranches, each having a different maturity and
risk associated with it and therefore each carrying its own rating. A stability score is an
estimate of the probability of a rating remaining in the same category after the passage of one
year, thus helping investors compare and contrast transactions that may have the same ratings
but possess different characteristics.
Fitch VECTOR Default Model (VECTOR) - Fitch Ratings’ main quantitative tool for
evaluating default risk in credit portfolios backing CDOs. The main outputs of VECTOR are
the rating default rate, rating loss rate and the rating recovery rate corresponding to each rating
tier within a security.