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NET ASSET VALUE
The portfolio of open-ended subscriptions managed by the Company and its subsidiaries amounted to 3 086 168 units as of December 31, 2009 (of which 79,395 subscriptions concern discontinued or held for disposal subsidiaries). It totaled 3 203 722 subscriptions as of December 31, 2010. It should be noted that all Group companies hold the financial rights related to each open-ended subscription.
The value of the portfolio of open-ended subscriptions, net of taxes (Group share), rose from € 83.0 million as of December 31, 2009, to € 88.9 million as of December 31, 2010.
This increase in real asset value is not reflected in the consolidated financial statements.
The value of the portfolio of open-ended subscriptions may be calculated by determining the present value of the future net revenues these subscriptions will generate throughout their useful life. These revenues may be determined in a precise manner by using the statistical information accumulated by the Company over several years concerning the behavior of such subscriptions in France and in its subsidiaries.
The life curve of subscriptions recruited by a promotional campaign makes it possible to determine, at any time, the residual life expectancy of the subscriptions with great accuracy. The net contribution still to be received can be computed by applying to the number of remaining subscriptions the average revenues observed and the margin on direct costs (with discounts deducted). The present value of this contribution, calculated by applying a rate based on the money market rate, gives the value of this number of subscriptions.
The total value of the portfolio of subscriptions held can be determined by cumulating all the values attached to all subscriptions.
These portfolio values are then corrected for any underlying tax.
The value of the portfolio of open-ended subscriptions, net of taxes (Group share), can be broken down as follows:
(€ thousands)
Value of ADL'S portfolio (exclusive of tax) (Group share)
at 12/31/2010
at 12/31/2009
Continuing operations ADLPartner France
85 200
78 727
ADLPartner Hispania
3 669
3 040
Total
88 869
81 767
International operations discontinued or held for disposal
0
1 207
Total
88 869
82 974
The value of the portfolio (Group share), plus consolidated shareholders' equity (Group share), represented net asset value (Group share) that rose from € 101.9 million at December 31, 2009, to € 102.0 million at December 31, 2010.
Shareholders' equity at December 31, 2010 was strongly impacted by the exceptional payout of € 14 million made in September 2010, which reduces the observed change between the two years.
