Slide 1: 2010 First-Half Results
2010 First-Half Results August 26, 2010
Slide 2: Disclaimer
Disclaimer 2010 First-Half Results 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
Slide 3: Contents
2010 First-Half Results Contents Key Figures ………………………….…. pages 4 to 5 Financial Indicators by Division ………. pages 6 to 22 Summary Financial Information ….…... pages 23 to 31 Appendices ………..………………........ pages 32 to 42 Significant Events………………………. pages 43 to 76 August 26, 2010 3
Slide 4: Key Figures
Key Figures 4
Slide 5: Key Figures
Key Figures 2010 First-Half Results Net sales virtually unchanged at €3,716m (vs. €3,720m for H1 2009) • Down 2.7% on a like-for-like basis Lagardère Media recurring EBIT before associates: €183m (vs. €181m for H1 2009) - up 0.6% on a reported basis - down 1.8% at constant exchange rates • Consolida
Slide 6: Financial Indicators by Division
Financial Indicators by Division 6
Slide 7: Lagardère Publishing
© Lagardére Publishing Lagardere PUBLISHING
Slide 8: Changes in scope of consolidation
Changes in scope 2010 First-Half Results of consolidation Deconsolidation of Brazilian educational publisher Escala Educacional from April 30, 2010, following signature of an agreement to sell the business. August 26, 2010 8
Slide 9: Net sales
Net sales 2010 First-Half Results H1 2010 net sales: €975m (vs. €1,009m in H1 2009), down 3.4% on a reported basis and down 4.5% on a like-for-like basis (exchange rate effects). Key operating trends: • Decline in sales of Stephenie Meyer books • Education sales hit by very tough spending cuts in Sp
Slide 10: Income statement data
Income statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Change Net sales (a) 1,009 975 -3.4% Recurring EBIT before associates (b) 112 101 -10.2% Income from associates 1 1 Non-recurring/non-operating items (1) (13) EBIT 112 89 -20.4% Operating margin (b) / (a) 11.1% 10.3% August 26, 2010
Slide 11: Lagardère Active
© Lagardére Active Lagardere ACTIVE
Slide 12: Changes in scope of consolidation
Changes in scope 2010 First-Half Results of consolidation Deconsolidation of the Virgin 17 TV channel from May 31, 2010, following signature of an agreement to sell the business. Interest in Canal+ France reclassified to “Held-for-sale assets” in the balance sheet as of June 30, 2010, at the carryin
Slide 13: Net sales
Net sales 2010 First-Half Results H1 2010 net sales: €855m (vs. €831m in H1 2009), up 2.9% on a reported basis and up 0.6% on a like-for-like basis: • Magazines: €641m, up 1.1% (down 0.2% on a like-for-like basis) • Radio: €130m, up 7.5% (up 1.4% on a like-for-like basis) • TV: €84m, up 9.7% (up 6.1
Slide 14: Income statement data
Income statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Change Net sales (a) 831 855 +2.9% Recurring EBIT before associates (b) 9 36 +287.6% Magazines 1 28 Radio 4 11 TV 4 (3) Income from associates before amortization of acquisition-related intangible assets and 47 1 impairment losses Ma
Slide 15: Lagardère Services
© Lagardére Services Lagardere SERVICES
Slide 16: Changes in scope of consolidation
Changes in scope 2010 First-Half Results of consolidation Consolidation from February 1, 2010 of Aelia CZ, which operates airport retail outlets in the Czech Republic. August 26, 2010 16
Slide 17: Net sales
Net sales 2010 First-Half Results H1 2010 net sales: €1,712m (vs. €1,619m for H1 2009), up 5.7% on a reported basis and up 1.6% on a like-for-like basis: • Impact of exchange rates: +3.6% • Impact of changes in scope of consolidation: +0.5% Key operating trends: • Very strong trading in France, at R
Slide 18: Income statement data
Income statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Change Net sales (a) 1,619 1,712 +5.7% Recurring EBIT before associates (b) 27 37 +36.1% Income from associates 3 4 Non-recurring/non-operating items (12) (7) EBIT 18 34 Operating margin (b) / (a) 1.7% 2.2% August 26, 2010 18
Slide 19: Lagardère Unlimited
© Lagardére Unlimited Lagardere UNLIMITED «
Slide 20: Changes in scope of consolidation
Changes in scope 2010 First-Half Results of consolidation Acquisition of Best, a U.S. company specializing in athlete and celebrity representation, to be consolidated from H2 2010. August 26, 2010 20
Slide 21: Net sales
Net sales 2010 First-Half Results H1 2010 net sales: €174m (vs. €261m in H1 2009), down 33.1% on a reported basis and down 33.8% on a like-for-like basis (exchange rate effects). Key operating trends: • Absence of football World Cup qualification matches had a very big impact on Sportfive and WSG •
Slide 22: Income statement data
Income statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Change Net sales (a) 261 174 -33.1% Recurring EBIT before associates* (b) 33 9 -72.7% Income from associates - - Amortization of acquisition-related intangible assets and other acquisition-related expenses (13) (8) Non-recurring/non-
Slide 23: Summary Financial Information
Summary Financial Information 23
Slide 24: Lagardère Media income statement data
Lagardère Media income 2010 First-Half Results statement data (€m) H1 2009 H1 2010 Recurring EBIT before associates 181 183 Contribution from associates before amortization of acquisition-related 51 6 intangible assets and impairment losses Recurring EBIT 232 189 Restructuring costs (32) (14) Net ga
Slide 25: EBIT
EBIT 2010 First-Half Results (€m) H1 2009 H1 2010 Lagardère Media (102) 190 Non-media 5 (48) Total excluding EADS (97) 142 Equity-accounted contribution from EADS 34 15 Gain on disposals of EADS shares 539 - Total Lagardère Group 476 157 August 26, 2010 25
Slide 26: Consolidated income statement
Consolidated income 2010 First-Half Results statement EADS & EADS & Lagardère Non- Total Lagardère Non- Total (€m) Media Media H1 2009 Media Media H1 2010 Change Net sales 3,720 - 3,720 3,716 - 3,716 -0.1% Recurring EBIT before 181 5 186 183 (4) 179 -3.7% associates Income from associates 85 21 Excl
Slide 27: Adjusted net income (excluding EADS)
Adjusted net income 2010 First-Half Results (excluding EADS) (€m) H1 2009 H1 2010 Net income attributable to equity holders of the parent 318 80 Equity-accounted contribution from EADS (34) (15) Equity-accounted contribution from Canal + France (48) - Amortization of acquisition-related intangible a
Slide 28: Consolidated statement of cash flows
Consolidated statement of 2010 First-Half Results cash flows (€m) H1 2009 H1 2010 Cash flow from operations before interest, taxes & changes in working capital 277 244 Changes in working capital (94) (142) Cash flow from operations 183 102 Interest paid and received, and income taxes paid (135) (47)
Slide 29: Change in net debt H1 2009 vs. H1 2010
Change in net debt 2010 First-Half Results H1 2009 vs. H1 2010 (€m) H1 2009 H1 2010 Net debt at start of period (2,619) (1,824) Net cash generated by/(used in) operating and investing activities 662 (94) Purchase of treasury shares (3) 2 Dividends (194) (192) Increase/(decrease) in short-term invest
Slide 30: Consolidated balance sheet
Consolidated balance sheet 2010 First-Half Results (€m) Dec. 31, 2009 June 30, 2010 Non-current assets (other than investments in associates) 5,206 5,381 Investments in associates 2,169 272 EADS 395 0 Other associates 1,774 272 Current assets (other than short-term investments and cash) 2,908 3,022
Slide 31: Stockholders’ equity and net debt
Stockholders’ equity 2010 First-Half Results and net debt (€m) Dec. 31, 2009 June 30, 2010 Stockholders’ equity 4,082 3,725 Net debt (1,824) (2,199) Gearing 44.7% 59.0% August 26, 2010 31
Slide 32: Appendices
Appendices 32
Slide 33: Analysis of non-recurring/non-operating items – H1 2010
Analysis of non-recurring/ 2010 First-Half Results non-operating items – H1 2010 Lagardère Lagardère Lagardère Lagardère Non- (€m) Publishing Active Services Unlimited media Total Restructuring costs - (8) (3) (3) (30) (44) Gains/(losses) on disposals and (12) 40 - - (14) 14 associated risks Impairm
Slide 34: Analysis of non-recurring/non-operating items – H1 2009
Analysis of non-recurring/ 2010 First-Half Results non-operating items – H1 2009 Lagardère Lagardère Lagardère Lagardère Non- (€m) Publishing Active Services Unlimited media Total Restructuring costs - (20) (12) - (1) (33) Gains/(losses) on disposals and - (4) 1 - 540 537 associated risks Impairment
Slide 35: Contribution from associates by division
Contribution from 2010 First-Half Results associates by division (€m) H1 2009 H1 2010 Lagardère Publishing 1 1 Lagardère Active 33 1 - Broadcast* 31 (5) - Press 2 6 Lagardère Services 3 4 Total Lagardère Media 37 6 Non-media 34 15 TOTAL 71 21 * Includes €10m negative impact of amortization of acquis
Slide 36: Principal associates
Principal associates 2010 First-Half Results 2009 2010 Balance Income Balance Income sheet statement sheet statement (€m) (Dec. 31, 2009) (H1 2009) (June 30, 2010) (H1 2010) EADS 395 34 0 15 Canal+ France* 1,507 38 - - Marie-Claire** 128 1 126 1 Other associates 139 (2) 146 5 Total 2,169 71 272 21 *
Slide 37: Cash flow statement data
Cash flow statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Cash flow from operations before interest, taxes & changes in 120 107 working capital Changes in working capital (111) (114) Cash flow from operations 9 (7) Interest paid & received, and income taxes paid (33) (50) Cash generated
Slide 38: Cash flow statement data
Cash flow statement data 2010 First-Half Results Broad- H1 Broad- H1 (€m) cast Press 2009 cast Press 2010 Cash flow from operations before interest, taxes 16 (9) 7 11 29 40 & changes in working capital Changes in working capital 19 35 54 (14) 19 5 Cash flow from operations 35 26 61 (3) 48 45 Interes
Slide 39: Cash flow statement data
Cash flow statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Cash flow from operations before interest, taxes & changes in working capital 55 53 Changes in working capital 6 (15) Cash flow from operations 61 38 Interest paid & received, and income taxes paid (12) (8) Cash generated by/(used
Slide 40: Cash flow statement data
Cash flow statement data 2010 First-Half Results (€m) H1 2009 H1 2010 Cash flow from operations before interest, taxes & changes in working capital 81 55 Changes in working capital (32) (18) Cash flow from operations 49 37 Interest paid & received, and income taxes paid (30) (7) Cash generated by/(u
Slide 41: Debt by maturity
Debt by maturity 2010 First-Half Results (€m) as of June 30, 2010 < 1 year 1-5 years > 5 years Total Bond issues 189 1,255 - 1,444 Bank borrowings 22 1,025 - 1,047 Finance lease obligations 1 2 - 3 Liabilities arising from commitments - 40 1 41 to buy out minority interests Other debt 449 6 7 462 TO
Slide 42: Off balance sheet commitments
Off balance sheet 2010 First-Half Results commitments Dec. 31, June 30, (€m) 2009 2010 Commitments to purchase shares from third parties (other than 14 14 minority interests) Commitments given in connection with ordinary activities: - contract guarantees and performance bonds 81 69 - guarantees in f
Slide 43: Significant events
© Significant events Lagardere
Slide 44: Contents
2010 First-Half Results Contents Lagardère Publishing…………………... pages 45 to 51 Lagardère Active ……………………….. pages 52 to 59 Lagardère Services………………………pages 60 to 69 Lagardère Unlimited ………..………….. pages 70 to 76 August 26, 2010 44
Slide 45: Lagardère Publishing
© Lagardére Publishing Lagardere PUBLISHING
Slide 46: Overview
Overview 2010 First-Half Results 2010 first-half performance • Net sales: €975m: down 3.4% on a reported basis down 4.5% on a like-for-like basis • Recurring EBIT before associates: €101m on a reported basis • Operating margin: 10.3% for H1 2010, vs. 11.1% for H1 2009 August 26, 2010 46
Slide 47: Stephenie Meyer
Stephenie Meyer 2010 First-Half Results Marked decline in sales of Volumes 1 to 4 in all markets, partly offset by substantial international rights sales in the first quarter. Worldwide release of the Manga version of Twilight. Worldwide release in June 2010 of the spin-off, Bree Tanner, a short nov
Slide 48: France
France 2010 First-Half Results Net sales and recurring EBIT before associates in line with budget, and ahead of the first half of 2008. Change versus H1 2008 almost entirely due to lower Twilight sales. Excellent first half for Kids/Teens, Livre de Poche, Literature and Larousse. Lower revenues for
Slide 49: International
International 2010 First-Half Results HBG (USA) ahead of 2008 and budget, in terms of net sales and recurring EBIT before associates. • 90 titles in the New York Times bestsellers list, versus 131 over 2009 as a whole. • Strong rights sales for Twilight. Hachette UK ahead of budget thanks to resilie
Slide 50: Partworks Digital
Partworks 2010 First-Half Results Net sales and recurring EBIT before associates ahead of budget. • Good performances in the Italian and Japanese markets. • Excellent start-up in Russia. Digital Hachette Livre a worldwide partner of Apple for the iPad launch. Over 10,000 titles available from the la
Slide 51: Second-half outlook
Second-half outlook 2010 First-Half Results School and University textbooks in decline in France, the UK, and especially in Spain, due to public spending cuts. USA: very tough comparative (the takeoff in Twilight sales began in August 2008 and lasted until the end of 2009 thanks to the release of th
Slide 52: Lagardère Active
© Lagardére Active Lagardere ACTIVE
Slide 53: Overview
Overview 2010 First-Half Results 2010 first-half performance • Net sales: €855m: up 2.9% on a reported basis up 0.6% on a like-for-like basis • Recurring EBIT before associates: €36m on a reported basis • Operating margin: 4.2% for H1 2010, vs. 1.1% for H1 2009 Press 2010 first-half performance • Ne
Slide 54: Magazines – France
Magazines – France 2010 First-Half Results Circulation Circulation revenues were slightly down excluding Version Femina and on a same-titles basis (excluding the launch of Be). In a market where single-copy sales are generally under pressure, our titles gained or held market share: • Elle accelerate
Slide 55: Magazines – International
Magazines – International 2010 First-Half Results First-half net sales: flat, but growth on a like-for-like basis. • After remaining flat overall in Q1 on a same-titles basis, clear signs of recovery emerged in all countries from April, with an acceleration in emerging markets, China and Russia. • A
Slide 56: Magazines – International (continued)
Magazines – International 2010 First-Half Results (continued) Italy: the most challenging European market in the first half. • Circulation and advertising revenues were both slightly lower on a like-for-like basis. United States: return to growth in women’s magazines. • Circulation revenues rose sli
Slide 57: Television
Television 2010 First-Half Results Digital Terrestrial Television An agreement was signed with Bolloré Média on June 9, 2010 with a view to the sale of Virgin 17 at end of August 2010. Gulli maintained excellent first half viewing figures among kids, and among target adult audiences for evening slot
Slide 58: Radio / Radio Airtime Sales
Radio / Radio Airtime Sales 2010 First-Half Results Europe 1 Radio advertising revenues rose sharply in the first half. Audiences: • Europe 1 gained further audience share in its key target market (the 25-59 age bracket), attracting a 6.6% share in H1 2010, an increase of 5% versus 2009 (6.3%). Grow
Slide 59: Digital
Digital 2010 First-Half Results Cumulative worldwide audience of 68m unique visitors with strong positions in the women’s segment, especially with Doctissimo (8m UVs) and the Elle network (17m UVs). Launch of Spanish, Italian and English versions of Doctissimo (April-July 2010). Deployment of strate
Slide 60: Lagardère Services
© Lagardére Services Lagardere SERVICES
Slide 61: Overview
Overview 2010 First-Half Results 2010 first-half performance • Net sales: €1,712m: up 5.7% on a reported basis up 1.6% on a like-for-like basis • Recurring EBIT before associates: €37m on a reported basis • Operating margin: 2.2% for H1 2010, vs. 1.7% for H1 2009 Split by business line • Retail: 70.
Slide 62: Overview
Overview 2010 First-Half Results Factors influencing Lagardère Services 2010 first-half revenues: • The ongoing decline in single-copy print media sales: Magazine publishers have responded to the sharp fall in advertising revenues by launching fewer new titles, breaking the cycle of product refreshm
Slide 63: France
France 2010 First-Half Results Relay France • Net sales growth of 5.1%: • Same-stores sales growth of 4.8%. - decline in print media and phonecard sales. - strong growth in tobacco product sales. - increase in food sales. • Expansion of the core store network, especially in hospitals, with 7 more ou
Slide 64: France (continued)
France (continued) 2010 First-Half Results Aelia • Net sales up 5.9% (or 5.8% on a same-stores basis): - airports up 5.5% despite the contraction in air passenger traffic in France. - Euronord up 3.4%, with a very good 2010 second-quarter performance. - in-flight up 42.8% thanks to the new in-flight
Slide 65: Europe
Europe 2010 First-Half Results Spain • Distribution down 1.3%, with a 5.3% decline for magazines (reflecting adverse trends in the print media market) but 20% growth in book sales. • Retail up 4.1%: - press sales outlets down 2.0% on lower downtown and shopping mall footfall. - 6.1 points of growth
Slide 66: Europe (continued)
Europe (continued) 2010 First-Half Results Belgium • Sales virtually unchanged (0.1% growth), despite a drop of nearly 0.7% in print media sales, thanks to increased tobacco product sales. The network now comprises 280 outlets. • Slight drop of 1% in sales for the Distribution business. Switzerland
Slide 67: Eastern Europe (continued)
Eastern Europe (continued) 2010 First-Half Results Poland • Overall growth of 10.7% in Poland, with the network now standing at 665 outlets (9 more than at end of June 2009). • 10.6% growth for the Relay and Inmedio retail businesses. • Ongoing diversification with the Empik Café concept (55 outlets
Slide 68: Eastern Europe (continued)
Eastern Europe (continued) 2010 First-Half Results Czech Republic • First-half sales growth of 22.9% - excluding the acquisition, sales rose by 1.3% thanks to the opening of 5 new outlets (including the Paul and Costa diversifications). The network now stands at 175 outlets. - the 5 duty free outlet
Slide 69: Other countries
Other countries 2010 First-Half Results North America • Retail in Canada and the United States down 4.9%, but stable on a same-stores basis with good performances in airport retail. • Distribution in the United States: the market has stabilized following the bankruptcy of one of America’s top 4 whol
Slide 70: Lagardère Unlimited
© Lagardére Unlimited Lagardere UNLIMITED «
Slide 71: Overview
Overview 2010 First-Half Results H1 2010 performance • Net sales: €174m: down 33.1% on a reported basis down 33.8% on a like-for-like basis • Recurring EBIT before associates: €9m on a reported basis • Operating margin: 5.1% for H1 2010, vs. 12.6% for H1 2009 August 26, 2010 71
Slide 72: Media Rights (distribution/sale)
Media Rights 2010 First-Half Results (distribution/sale) Media revenues represent around 59% of divisional net sales Successful distribution of media rights to a number of major events held in early 2010: • African Cup of Nations (January - Sportfive France/Africa): rights to the 2010 tournament in
Slide 73: Media Rights (acquisitions)
Media Rights (acquisitions) 2010 First-Half Results A number of important contracts were obtained or renewed during the first half of 2010: • Portuguese Football League (March - IEC in Sports): renewal of the media rights distribution contract until 2012. • ATP 250 tournaments (February-May - IEC in
Slide 74: Sports Marketing
Sports Marketing 2010 First-Half Results Marketing activities represent around 36% of divisional net sales. Sportfive consolidated its leading position in football: • Expansion of the portfolio of clubs under exclusive marketing contracts: long-term partnerships agreed with AS Saint-Etienne (France)
Slide 75: Events
Events 2010 First-Half Results High level of participation in the 3rd Skoda Berlin Velothon, organized by Upsolut. Success of the first Copa del Sol, a football tournament organized in Spain by IEC in Sports, in February 2010. Promotion by World Sport Group of the Luxehills Championships (Chengdu, C
Slide 76: Events
Events 2010 First-Half Results Acquisition of Best, an American company that represents sports stars and celebrities, in May 2010. Creation of Lagardère Unlimited to replace Lagardère Sports. We are now active in 6 business lines across the sport and entertainment world: artist and athlete represent