Lagardere Sa · EURONEXT:MMB

Lagardere Sa — Investor Day (May 2014)

53 slides from Lagardere Sa's investor day presentation, May 28, 2014

  1. Slide 1: Lagardère Active Investor Day Presentation

    LAGARDERE ACTIVE PRESENTATION INVESTOR DAY LAGARDERE Paris – 28 May 2014

  2. Slide 2: Lagardère Active: Introduction

    INVESTOR DAY – Paris, 28 May 2014 LAGARDERE ACTIVE: INTRODUCTION  Lagardère Active is a major French player in the media industry • #1 magazine publisher in France (Elle, Paris Match, JDD, Public…) • #1 TV production group in France (Lagardère Entertainment) • #1 internet & mobile media group in Fr

  3. Slide 3: Agenda

    INVESTOR DAY – Paris, 28 May 2014 AGENDA  Digital : • Denis OLIVENNES, C.E.O. Lagardère Active  Media & Non Media Licensing : • François CORUZZI, E.V.P. International • Fabrice PLAQUEVENT, C.E.O. Lagardère Entreprises  TV Production : • Takis CANDILIS, C.E.O. Lagardère Entertainment  Conclusion

  4. Slide 4: Digital Strategy

    DIGITAL STRATEGY INVESTOR DAY 28 May 2014

  5. Slide 5: Lagardère Active: Financial Reconciliation

    INVESTOR DAY – Paris, 28 May 2014 LAGARDERE ACTIVE: FINANCIAL RECONCILIATION  Reconciliation between reported consolidated figures for Lagardere Active and figures commented in this Presentation Digital Turnover Total Turnover Recurring EBIT In €m before associates 2009 2013 2009 2013 2009 2013 Rep

  6. Slide 6: Global Stability of Turnover, Robust Growth of EBIT

    INVESTOR DAY – Paris, 28 May 2014 GLOBAL STABILITY OF TURNOVER, ROBUST GROWTH OF EBIT  Lagardère Active experienced: • A stable turnover between 2009 and 2013 • A growing operating income during the same period • Out: • In*: Scope • Nextidea • Le Guide • International Press • Billet Reduc Caption •

  7. Slide 7: Slow Decline of Press, Growth of Audiovisual, Greater Growth of Internet Pure Players

    INVESTOR DAY – Paris, 28 May 2014 SLOW DECLINE OF PRESS, GROWTH OF AUDIOVISUAL, GREATER GROWTH RATE OF INTERNET PURE PLAYERS Press (incl. digital) Audiovisual (incl. digital) Turnover (M€) Turnover (M€) CAGR 2009 – 2013 CAGR 2009 – 2013 -3% +2% 600,0 501 449 550,0 430 475 400,0 275,0 200,0 0,0 0,0 2

  8. Slide 8: Stability of Non-Digital, Growth of Digital

    INVESTOR DAY – Paris, 28 May 2014 STABILITY OF NON-DIGITAL, GROWTH OF DIGITAL Digital* Non digital* Turnover (M€) Turnover (M€) CAGR 2009 – 2013 CAGR 2009 – 2013 +3% 0% 1 100 110 97 904 893 85 55 550 0 0 2009 2013 2009 2013 * Traditional media brand websites (Press & Audiovisual), Pure * Print (excl

  9. Slide 9: Growth of Traditional Media Brand Websites, Greater Growth of Pure Players

    INVESTOR DAY – Paris, 28 May 2014 GROWTH OF TRADITIONAL MEDIA BRAND WEBSITES, GREATER GROWTH OF PURE PLAYERS Other digital turnover: Pure Players mainly traditional media brand websites (incl. interactivity) Turnover (M€) Turnover (M€) 90,0 CAGR 2009 – 2013 40,0 CAGR 2009 – 2013 +4% +2% 67 30 28 57

  10. Slide 10: Short Film About Digital at Lagardère Active

    INVESTOR DAY – Paris, 28 May 2014 SHORT FILM ABOUT DIGITAL AT LAGARDERE ACTIVE 10

  11. Slide 11: Growth Acceleration Levers in Digital

    INVESTOR DAY – Paris, 28 May 2014 5 GROWTH ACCELERATION LEVERS IN DIGITAL  Systematize the implementation of SEO and ANALYTICS tools  Develop trafic generation through SOCIAL MEDIA  Expand VIDEO inventory  Develop SPECIAL OPERATION & Native Advertising  Set up ambitious CRM strategy 11

  12. Slide 12: Focus on Digital Examples

    INVESTOR DAY – Paris, 28 May 2014 FOCUS ON 3 DIGITAL EXAMPLES  BilletReduc: pure play based on services  Doctissimo: pure play based on content  Gulli: the advertising model of a traditional media brand website 12

  13. Slide 13: BilletReduc

    BILLETREDUC INVESTOR DAY 28 May 2014

  14. Slide 14: BilletReduc: Key Metrics

    INVESTOR DAY – Paris, 28 May 2014 BILLETREDUC: KEY METRICS  Website launched in 2000 in France • Bought at end 2012 • 1 M unique visitors per month on desktop (1) • #2 website on ticket segment • Community of 2M subscribers • Specialized on theatre in Paris • Awarded best online ticket service in F

  15. Slide 15: Levers of Growth for BilletReduc

    INVESTOR DAY – Paris, 28 May 2014 LEVERS OF GROWTH FOR BILLETREDUC • Develop new themes such as museums, leisure, amusement park… Enlarge the offer • Develop regional offer in the biggest cities in France like Aix/Marseille, Bordeaux… Develop the • Best practise in this area will increase ticket pri

  16. Slide 16: Doctissimo

    DOCTISSIMO INVESTOR DAY 28 May 2014

  17. Slide 17: Doctissimo: Key Metrics

    INVESTOR DAY – Paris, 28 May 2014 DOCTISSIMO: KEY METRICS  Website launched in 2000 in France • 8 M unique visitors1 per month on desktop • #1 website on women portals segment • Community of 4M subscribers • Awarded best French website in 2013 in the « Family » category2 • Doctissimo.it and Doctiss

  18. Slide 18: Levers of Growth for Doctissimo

    INVESTOR DAY – Paris, 28 May 2014 LEVERS OF GROWTH FOR DOCTISSIMO • Reorganize the advertising agency and develop the Brand content Leverage historical • Develop the WebApp and launch new applications: children, activity back pain • Video: development of special operations in video, new templates, v

  19. Slide 19: Gulli

    GULLI INVESTOR DAY 28 May 2014

  20. Slide 20: Gulli: Key Metrics

    INVESTOR DAY – Paris, 28 May 2014 GULLI: KEY METRICS  Gulli.fr, #1 website for kids in France • 1M unique users & 13M page views per month (1) • Reaches nearly 30% of families with children from 4 to 10 years-old (2) • Capitalizes on broadcasting contents, including replay • Creates specific online

  21. Slide 21: Levers of Growth for Gulli

    INVESTOR DAY – Paris, 28 May 2014 LEVERS OF GROWTH FOR GULLI • Development of a GULLI MAX, a new app based on Develop revenues subscription. The expected revenues comes mainly from B to B with tablet manufacturers. This app will propose SVOD, on mobile games and edutainment for 4,99€/month • Concept

  22. Slide 22: ELLE International Media Licenses

    ELLE INTERNATIONAL MEDIA LICENSES INVESTOR DAY 28 May 2014

  23. Slide 23: Partners & Scope

    INVESTOR DAY – Paris, 28 May 2014 PARTNERS & SCOPE  Lagardère Active remains the full owner of the ELLE and ELLE Decoration brands  80 Magazines & 41 websites worldwide published under license agreements  20 partners in the world: • Hearst in 17 countries • 19 other prestigious partners (such as

  24. Slide 24: Market Position

    INVESTOR DAY – Paris, 28 May 2014 MARKET POSITION  ELLE N°1 upscale women magazine in the World with 23% advertising market share worldwide and around 51.000 advertising pages sold per year*  ELLE leader in 24 markets in the world (outside France) including China, Russia, Italy, Brazil, Japan, Kor

  25. Slide 25: A Safe Business Model

    INVESTOR DAY – Paris, 28 May 2014 A SAFE BUSINESS MODEL  Today, Lagardère Active works only with one business model outside France : Licenses • Based on royalties paid on the total turnover (print & digital activities) • Minimum guarantees every year safer and less subject to cycles 25

  26. Slide 26: Diversified Geographies of Royalties in 2013

    INVESTOR DAY – Paris, 28 May 2014 DIVERSIFIED GEOGRAPHIES OF ROYALTIES IN 2013 Well balanced & diversified geographies 26

  27. Slide 27: A Growing & Profitable Business

    INVESTOR DAY – Paris, 28 May 2014 A GROWING & PROFITABLE BUSINESS  A very profitable business: 86% profitability ratio on sales (2012 and 2013)  A growing business : • Turnover growth 2012-2013: +2% (CAGR) • EBITA growth 2012-2013: +3% (CAGR) 27

  28. Slide 28: Potential for Growth (1/2)

    INVESTOR DAY – Paris, 28 May 2014 POTENTIAL FOR GROWTH (1/2) Strong potential in digital development : In 2013, Digital Revenues represented 8% of ELLE total Net Revenues worldwide = > our goal is to reach 10% by 2015 28

  29. Slide 29: Potential for Growth (2/2)

    INVESTOR DAY – Paris, 28 May 2014 POTENTIAL FOR GROWTH (2/2) 29

  30. Slide 30: Conclusion

    INVESTOR DAY – Paris, 28 May 2014 CONCLUSION  ELLE international media licenses: a very profitable business  A growing activity  No financial and operational risk  High contribution to ELLE Total EBIT 30

  31. Slide 31: ELLE Non Media Licences

    ELLE “NON MEDIA” LICENCES INVESTOR DAY 28 May 2014

  32. Slide 32: A Critical Size

    INVESTOR DAY – Paris, 28 May 2014 A CRITICAL SIZE  3 main segments: Ready-to-Wear • Fashion Accessories • Home Interior  Targets: Women, Children and Men  140 licensees  80 countries  20.000 points of sales worldwide  Licensees’ Turnover : approx 1 billion USD (Retail basis - 2013) 32

  33. Slide 33: Limited Risk Model

    INVESTOR DAY – Paris, 28 May 2014 LIMITED RISK MODEL Brand Licensing Core Principles  Lagardère Active Enterprises grants trademarks right to licensees, who handle and bear: • Manufacturing - Inventories • Supply chain – sales forces • Distribution / retail • Product & Retail Marketing (BtoB & BtoC

  34. Slide 34: An Improved Geographical Profile

    INVESTOR DAY – Paris, 28 May 2014 AN IMPROVED GEOGRAPHICAL PROFILE Sales geographic breakdown In % Turnover 34

  35. Slide 35: A More Balanced Business Portfolio

    INVESTOR DAY – Paris, 28 May 2014 A MORE BALANCED BUSINESS PORTFOLIO Brand Management & Categories breakdown In % Turnover 35

  36. Slide 36: Moving Towards a Balanced Retail Model

    INVESTOR DAY – Paris, 28 May 2014 MOVING TOWARDS A BALANCED RETAIL MODEL 100% 95% 90% 80% In % Turnover 70% 65% 60% 50% Wholesale Retail 40% 35% 30% 20% 10% 5% 0% 2003 2013 36

  37. Slide 37: Robust Growth Demonstrated

    INVESTOR DAY – Paris, 28 May 2014 ROBUST GROWTH DEMONSTRATED Sales from 2009 to 2013 140 120 100 80 60 40 20 0 2009 2010 2011 2012 2013 Sales growth from 2009 to 2013: +27% (CAGR + 6%) 37

  38. Slide 38: Future Growth Levers

    INVESTOR DAY – Paris, 28 May 2014 FUTURE GROWTH LEVERS  New Networks Digital: ELLE Brand websites, e-commerce, social networks  New Products Cosmetics, Perfumes, Amenities, SPAs, Resorts, F&B, Cars, ELLE Café  New Countries Australia, NZ, South Africa, LATAM (Brazil)  Enriched Business Approach

  39. Slide 39: Lagardère Entertainment

    LAGARDERE ENTERTAINMENT INVESTOR DAY 28 May 2014

  40. Slide 40: Let's Introduce Ourselves!

    INVESTOR DAY – Paris, 28 May 2014 LET’S INTRODUCE OURSELVES ! 40

  41. Slide 41: TV Production: A Changing and Growing Market

    INVESTOR DAY – Paris, 28 May 2014 TV PRODUCTION: A CHANGING AND GROWING MARKET French TV market International sales Digital market 91% of our 2014 E revenues 5% of our 2014 E revenues 4% of our 2014 E revenues TV advertising revenues - 2% French audiovisual programs + 22% growth for digital TV video

  42. Slide 42: International Markets Potential

    INVESTOR DAY – Paris, 28 May 2014 INTERNATIONAL MARKETS POTENTIAL EUROPE FRANCE USA #1 in France… ASIA AFRICA LATIN AMERICA 42

  43. Slide 43: Keys to Success

    INVESTOR DAY – Paris, 28 May 2014 KEYS TO SUCCESS Find ideas for the market Find a market for ideas  Promoting creativity and innovation  Offering a diversified panel of programs  Entertaining an ecosystem of smart partners  Consolidating every day the trust from our clients 43

  44. Slide 44: Our Portfolio: A Balanced Mix of Revenues

    INVESTOR DAY – Paris, 28 May 2014 OUR PORTFOLIO: A BALANCED MIX OF REVENUES  3 main activities: • production of scripted production of • non-scripted programs • distribution  Organic growth and acquisitions: • limiting our dependency vis-à-vis prime time series • mainly acquiring non-scripted prod

  45. Slide 45: A Diversified and Safe Business Model (1/2)

    INVESTOR DAY – Paris, 28 May 2014 A DIVERSIFIED AND SAFE BUSINESS MODEL (1/2) SCRIPTED 74% of scripted content revenues Prime time  100% pre-financed: • about 80% by a French broadcaster • about 20% by public subsidies  Operated on a long period of time Powerful audience  sales potential in Franc

  46. Slide 46: A Diversified and Safe Business Model (2/2)

    INVESTOR DAY – Paris, 28 May 2014 A DIVERSIFIED AND SAFE BUSINESS MODEL (2/2) NON SCRIPTED • entirely pre-financed by broadcasters • recurring revenues • key audience meeting points (numerous seasons) • high format sales potential % of non-scripted 53% 25% 11% 11% Magazine Entertainment Performing a

  47. Slide 47: Our Strategy

    INVESTOR DAY – Paris, 28 May 2014 OUR STRATEGY 1 Developing our activity in France 2 Producing for corporate and digital 3 Acquiring strong European companies 4 Taking a position in emerging markets 47

  48. Slide 48: Development in France

    INVESTOR DAY – Paris, 28 May 2014 DEVELOPMENT IN FRANCE We have recently acquired We could acquire other French independent companies with a complementary portfolio or know how 48

  49. Slide 49: Business Case: Producing for Corporate and Digital

    BUSINESS INVESTOR DAYCASE : May 2014 – Paris, 28 A MYRIAD OF LINEAR, DIGITAL, AND COPORATE CLIENTS NEW CLIENTS AND REVENUES Producing for corporate and digital 49

  50. Slide 50: European Development

    INVESTOR DAY – Paris, 28 May 2014 EUROPEAN DEVELOPMENT Acquiring strong independent producers in selected European countries… … and become an European player 50

  51. Slide 51: International Ambitions

    INVESTOR DAY – Paris, 28 May 2014 INTERNATIONAL AMBITIONS …with a foothold in emerging markets Step 1 Step 2 Step 3 MAGHREB French Speaking AFRICA South-East ASIA • 90% of worldwide French-speakers in • Network & experience 2050 • +4 to +8% GDP growth p. a. • +4 to +8% GDP growth p. a. • emerging DT

  52. Slide 52: Slide 52

  53. Slide 53: Our Strategy

    INVESTOR DAY – Paris, 28 May 2014 OUR STRATEGY Concentrate on growing activities and enhance their profitable development: 1 Reinforce the growing audiovisual activity in particular TV production 2 Focus on the strongest print media brands in France and diversify their sources of revenue 3 Accelerat

Lagardère — Investor Day (May 2014) on 6ix