Lagardere SA · EURONEXT:MMB
Lagardere SA — Lagardère SCA — Investor Presentation (September 2009)
33 slides from Lagardere SA's investor presentation, September 2009
Slide 1: Investor Presentation
Investor Presentation Investor Presentation September 2009 Investor Presentation / 1
Slide 2: Presentation by Dominique D’Hinnin, CFO of Lagardère SCA
Presentation by Dominique D’Hinnin CFO of Lagardère SCA Investor Presentation / 2
Slide 3: Disclaimer
Disclaimer Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management’s beliefs. These statements reflect such views and assumptions as of the date of the statements
Slide 4: A clear strategy for the future
Investor Presentation A clear strategy for the future Lagardère is a diversified media group focused on 4 main divisions: Publishing, Active (Press, Radio and TV), Services and Sports • Our diversity (cyclical-acyclical/ mature-non mature businesses/ domestic-international) improves our risk profile
Slide 5: Lagardère SCA Key Figures
Investor Presentation Lagardère SCA Key Figures Operating results to end June 2009 confirm our ability to meet our full-year guidance: Revenues: €3,720m / - 3.5% like-for-like and - 2.2% on a reported basis Consolidated recurring EBIT before associates: €186m / - 27.0% Recurring EBIT before associat
Slide 6: Lagardère SCA 2008 full-year figures
Investor Presentation Lagardère SCA 2008 full-year figures 2008 revenues: €8,214m 2008 Media Recurring EBIT: €657m 5% 26% 11% 19% 37% 43% 26% 33% Investor Presentation / 6
Slide 7: Lagardère Publishing
Lagardère Publishing Investor Presentation / 7
Slide 8: A Balanced Portfolio of Assets
Investor Presentation A Balanced Portfolio of Assets Lagardère Publishing 2008 revenues: €2,159m 11% 13% 2% 22% 4% 31% 7% 8% 2% 20% 10% 18% 18% 34% Investor Presentation / 8
Slide 9: Competitive Position in the World Book Market
Investor Presentation Competitive Position in the World Book Market Pearson 4 744 Hachette Livre 2 159 Houghton Mifflin Harcourt* 1 900 Random House* 1 837 McGraw -Hill Education 1 803 Lagardère Publishing: No.2 Planeta + Editis* 1 760 De Agostini* 1 616 Scholastic 1 612 2007-2008 sales(*) in € mill
Slide 10: What next for Lagardère Publishing?
Investor Presentation What next for Lagardère Publishing? Continued organic growth: • Proactive exploration of business opportunities in large emerging countries • Partworks start-up in Russia to offset decline in mature markets (France, Spain, UK) • Implementation of digital plan to capitalize on g
Slide 11: Evolution of Lagardère Publishing Recurring EBIT
Investor Presentation Evolution of Lagardère Publishing Recurring EBIT • * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs • *** 2006 onward:post IAS 31 implementation •**** 2009 After management fees charged by Non-Media activities based on
Slide 12: Lagardère Active
Lagardère Active Investor Presentation / 12
Slide 13: Broadcast (2008 revenues: €520m)
Investor Presentation Broadcast (2008 revenues: €520m) 50% of Lagardère Radio’s business is 40% of the Broadcast business is in in France: our 3 stations (Europe 1, Virgin TV: Radio, RFM) together have nearly 20% • Strong position in TV Production in France audience share… • Successful launch of DTT
Slide 14: Evolution of Lagardère Active: Broadcast Recurring EBIT
Investor Presentation Evolution of Lagardère Active: Broadcast Recurring EBIT • * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs •*** 2006 onward: post IAS 31 implementation **** 2009 After management fees charged by Non-Media activities ba
Slide 15: Press (2008 revenues: €1,591m)
Investor Presentation Press (2008 revenues: €1,591m) •An international network in 44 countries WESTERN EUROPE 22% •RUSSIA 12% UNITED STATES 19% ASIA & OTHERS 8% Controlled subsidiaries: 128 magazines Joint venture: 40 magazines License: 50 magazines FRANCE 39% Brand extension dynamic 41 editions (39
Slide 16: Evolution of Lagardère Active: Press Recurring EBIT
Investor Presentation Evolution of Lagardère Active: Press Recurring EBIT • * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs •*** 2006 onward: post IAS 31 implementation **** 2009 After management fees charged by Non-Media activities based
Slide 17: Lagardère Active: Objectives for 2009
Investor Presentation Lagardère Active: Objectives for 2009 What factors will affect Lagardère Active recurring EBIT in 2009? • A decline in our advertising revenues: other things being equal, each 1% loss of advertising revenue has a negative impact of €8m to €10m on full-year recurring EBIT, befor
Slide 18: Lagardère Active: Objectives for 2009
Investor Presentation Lagardère Active: Objectives for 2009 How have we responded? •Active 2009 Plan – “One Step Further” • •Rationalization of the business portfolio After the Active 2009 plan, which in 2009 will In addition to cost-cutting, we will rationalize our have generated cumulative savings
Slide 19: “One Step Further” 2009 cost savings plan
Investor Presentation “One Step Further” 2009 cost savings plan €m 156 * ** Cumulative savings: • Close to 8% of operating expenses • Double the initial cost savings plan (Active 2009) * Before inflation, including around €20m one-shot savings that will be maintained as long as the environment does
Slide 20: Lagardère Services
Lagardère Services Investor Presentation / 20
Slide 21: Investor Presentation
Investor Presentation Investor Presentation / 21
Slide 22: 3 shifts to improve growth & profitability
Investor Presentation 3 shifts to improve growth & profitability From distribution to retail: distribution 34% of revenues in 2008 vs 45% in 2000 From low to higher margin products From mature countries toward Central Europe (18% of sales in 2008) & Asia (4% of sales in 2008) Investor Presentation /
Slide 23: Evolution of Lagardère Services Recurring EBIT
Investor Presentation Evolution of Lagardère Services Recurring EBIT • * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs •*** 2006 onward: post IAS 31 implementation **** 2009 After management fees charged by Non-Media activities based on th
Slide 24: Lagardère Sports
Lagardère Sports Investor Presentation / 24
Slide 25: European leader in sports rights management
Investor Presentation European leader in sports rights management •in € million •H1 2008 •2008 •H1 2009 •Revenues •197 •444 •261 •Operating Margin • 14.9% • • 16.9% • 12.6% Other 16% Germany 24% Asia 6% •In 2008 UK 8% Other European France countries 9% 37% •These figures do not include World Sport G
Slide 26: Building leading positions across key markets and expanding our service offering
Investor Presentation Building leading positions across key markets and expanding our service offering Investor Presentation / 26
Slide 27: Lagardère: Outlook for 2009
Lagardère: Outlook for 2009 Investor Presentation / 27
Slide 28: Outlook for 2009: Objectives confirmed
Investor Presentation Outlook for 2009: Objectives confirmed For Lagardère Active, the lack of visibility makes it impossible to set guidance for 2009 at this stage. However: • Each 1% loss of advertising revenue has a negative impact of €8m to €10m on full-year recurring EBIT before any cost saving
Slide 29: Lagardère IR Team
Lagardère IR Team: Virginie Banet Investor Relations Director Tel: 33 1 40 69 18 02 vbanet@lagardere.fr Nathalie Frizzole Investor Relations Tel: 33 1 40 69 67 88 nfrizzole@lagardere.fr Hélène Martin Assistant Tel: 33 1 40 69 19 22 Fax: 33 1 40 69 22 72 hmartin@lagardere.fr Address: 4 rue de Presbou
Slide 30: Appendix
Appendix Investor Presentation / 30
Slide 31: Most of the magazine portfolio restructuring plan achieved in 2008
Investor Presentation Most of the magazine portfolio restructuring plan achieved in 2008 •243 26 •220 •2 23 24 18 18 167 132 •Fully owned -21% •Reduction in # of magazines published: -35 37 •JV 50 51 •Licenses 26 •End 2006 •Sale •Closed Shift to •Fully •Launches •Acquisitions Current license owned •
Slide 32: “One Step Further” plan
Investor Presentation “One Step Further” plan Summary by line item Investor Presentation / 32
Slide 33: Investor Presentation
Investor Presentation Investor Presentation September 2009 Investor Presentation / 33
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