Lagardere Sa · EURONEXT:MMB
Lagardere Sa — Investor Presentation (November 2018)
12 slides from Lagardere Sa's investor presentation, Nov 12, 2018
Slide 1: Investor Meeting
INVESTOR MEETING November 12, 2018
Slide 2: Investor Meeting
INVESTOR MEETING November 12, 2018
Slide 3: Trade Book Markets Performance and Trends (Print)
Investor meeting TRADE BOOK MARKETS PERFORMANCE AND TRENDS (PRINT) 2017 vs. 2016 2018 Trend France -0.8% USA +1.9% UK +0.2% Spain +3.3% (incl. Educ) ▪ Flat to moderate growth thanks to favorable demographics (Silver economy) ▪ Gradual long-term decline likely, due to proliferation of digital enterta
Slide 4: Education Markets Performance and Trends
Investor meeting EDUCATION MARKETS PERFORMANCE AND TRENDS 2017 vs. 2016 2018 trend France -10.9% UK -6.0% Spain -15% (est.) ▪ Simultaneous absence of curriculum reform in three key countries in 2018 (no common cause) ▪ Reforms to resume in France in 2019, but level of public funding yet to be determ
Slide 5: Digital Performance and Trends
Investor meeting DIGITAL PREFORMANCE AND TRENDS ▪ eBooks : slow decline after peak in 2013 (US) and 2014 (UK) 20.6% 21.4% 20.7% 17.4% 17.6% 15.1% 15.9% 14.2% 13.4% 13.0% 12.2% 12.5% 16.0% 6.2% 5.8% 2.1% 1.3% 0.3% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 6: Which strategy have we adopted in the face of such performances and trends?
Investor meeting WHICH STRATEGY HAVE WE ADOPTED IN THE FACE OF SUCH PERFORMANCES AND TRENDS? Distribution for third parties Acquisitions Diversification Innovation and CRM 6
Slide 7: Distribution
Investor meeting DISTRIBUTION ▪ A key contributor to profits and cash flow • High barrier to entry (few players) • Negative working capital • Distribution for third parties is risk-free and contributes to economies of scale Opportunity : More publishers to exit the business in the future and join ma
Slide 8: Acquisitions
Investor meeting ACQUISITIONS ▪ M&A activity has inflated PER of all large publishing companies ▪ High price must be offset by skillfull integration and quickly implemented synergies in order to deliver high return on investment ▪ Lagardère Publishing’s track record in doing so is outstanding : Retu
Slide 9: Acquisitions (cont'd): Global industry-wide concentration is on-going
Investor meeting ACQUISITIONS (CONT’D) : GLOBAL INDUSTRY-WIDE CONCENTRATION IS ON-GOING Driven by : ▪ Weak organic growth ▪ Gains in profitability through synergies in : - Back offices - Distribution - Office footprints ▪ Need for leverage when dealing with online retailers But : M&A activity is slo
Slide 10: Diversification
Investor meeting DIVERSIFICATION With M&A, a top priority in order to generate growth ▪ Board Games - Good culture fit - Similar business model - Potential synergies in sales and distribution ▪ Video games for mobile devices - Fast growing segment - Need for IP ▪ Licencing - A policy for expanding m
Slide 11: Innovation & CRM
Investor meeting INNOVATION & CRM ▪ Hachette Innovation Program : • A multi-national team with offices in Silicon Valley, New York, London and Paris - Focus is on : o New technology o New creative processes o New business models - CRM focus is on : o Consumer insight o Community Building o Monetizat
Slide 12: To Summarize
Investor meeting TO SUMMARIZE ▪ Publishing is a mature, profitable and resilient industry ▪ As a top player, Lagardère Publishing needs to grow, diversify and innovate in order to continue to deliver solid, predictable profits and abundant cash flow in the long term We have already taken decisive st