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Lagardere Sa — Debt Investor Presentation (September 2014)

29 slides from Lagardere Sa's debt investor presentation, September 2014

  1. Slide 1: Company Presentation

    COMPANY PRESENTATION September 2014

  2. Slide 2: Table of Content

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 TABLE OF CONTENT 1) Group profile slide 3 2) Group strategy slide 6 3) Group performance slide 16 4) Key credit highlights slide 19 2

  3. Slide 3: Group Profile

    GROUP PROFILE September 2014

  4. Slide 4: A diversified media group with leading global brands and market positions

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 A DIVERSIFIED MEDIA GROUP WITH LEADING GLOBAL BRANDS AND MARKET POSITIONS World #3 trade France #1 Internet & A world leader in Leading global sports book publisher mobile media marketing, media and Travel Retail #1 in France Group event management

  5. Slide 5: A balanced business mix and a worldwide presence

    INVESTOR PRESENTATION / SEPTEMBER 2014 A BALANCED BUSINESS MIX AND A WORLDWIDE PRESENCE Breakdown of H1 2014 Breakdown of H1 2014 net sales by division recurring EBIT by division Unlimited Unlimited 5% 5% Publishing Services 27% Publishing 28% 40% * Services 55% Active Active 27% 13% * H1 figures ar

  6. Slide 6: Group Strategy

    GROUP STRATEGY September 2014

  7. Slide 7: 3-Pillar Strategy (1/2)

    INVESTOR PRESENTATION / SEPTEMBER 2014 3-PILLAR STRATEGY (1/2) Megatrends: Impact: Growth strategy: 1 Divest Audience fragmentation non-core Digitalisation activities & minority Value shift to stakes customer Re- knowledge allocate (data management) 2 cash Mobility Enhance generation GROWTH: leaders

  8. Slide 8: 3-Pillar Strategy (2/2)

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 3-PILLAR STRATEGY (2/2) N.B: Size proportional to sales. Growth potential Travel Retail Digital 3 Invest in higher growth Lagardère Unlimited activities Television Radio Book Publishing Distribution 2 Enhance leadership positions Press 1 Market pos

  9. Slide 9: Divest declining activities & non core assets

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 1 DIVEST DECLINING ACTIVITIES & NON CORE ASSETS  In 2013, successful disposal of the 3 main non core stakes at good conditions France 7,4% of the share capital 20% of the share capital 25% of the share capital €2,3bn €1bn €91m April, 9, 2013 Novem

  10. Slide 10: Enhance leadership positions (1/4): Publishing

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 2 ENHANCE LEADERSHIP POSITIONS (1/4): PUBLISHING Sustained consolidation of positions since 2003 • across 3 major languages (French, English and Spanish) • across all market segments (trade, education, illustrated, etc.) • acquisition of Editis (Fr

  11. Slide 11: Enhance leadership positions (2/4): Publishing

    INVESTOR PRESENTATION / SEPTEMBER 2014 2 ENHANCE LEADERSHIP POSITIONS (2/4): PUBLISHING Successful transition to digital  For the time being, the ebook has developed only • in anglo-saxon countries • in General Literature (fiction and non fiction)  The shift to digital is more an opportunity than

  12. Slide 12: Enhance leadership positions (3/4): Travel Retail

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 2 ENHANCE LEADERSHIP POSITIONS (3/4): TRAVEL RETAIL Consolidation of major long term partnerships Joint ventures with ADP (Paris airport) and SNCF (French railway company) Significant improvement of Travel Retail product mix Travel Retail sales@100

  13. Slide 13: Enhance leadership positions (4/4): Travel Retail

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 2 ENHANCE LEADERSHIP POSITIONS (4/4): TRAVEL RETAIL  Organic growth drivers of travel retail 1. Strong and regular increase of global air traffic 2. Increase in sales from emerging country passengers travelling in mature countries 3. Increasing ex

  14. Slide 14: Develop higher growth activities (1/2)

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 3 DEVELOP HIGHER GROWTH ACTIVITIES (1/2) Acquisitions and gain of concessions in Travel Retail 2003 Today 8 countries 30 countries, 150 airports 28% International* 52% International* #5 Worldwide #3 Worldwide Airports classified among the world’s t

  15. Slide 15: Develop higher growth activities (2/2)

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 3 DEVELOP HIGHER GROWTH ACTIVITIES (2/2) Digital  Development and acquisition of websites and apps Educational apps and e-learning platforms  Digital innovation • Sportfive: launch of the first official application for the Orange Africa Cup of Na

  16. Slide 16: Ongoing strategy is bearing fruit: reduced exposure to print and advertising

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 ONGOING STRATEGY IS BEARING FRUIT: REDUCED EXPOSURE TO PRINT AND ADVERTISING  Evolution of print revenues as % of total sales 72% 67% 61% Total reduction in print exposure: 49% -23 pts 2003 * 2007 2010 2013  Evolution of advertising** revenues as

  17. Slide 17: Key growth catalysts

    INVESTOR PRESENTATION / SEPTEMBER 2014 KEY GROWTH CATALYSTS Over the next years, the Group’s growth is likely to be:  Mostly organic: • After LS Distribution disposal, most of the portfolio adjustment would be achieved • Portfolio streamlining gives us the opportunity to build a stronger growth • S

  18. Slide 18: Group Performance

    GROUP PERFORMANCE FULL-YEAR 2013 AND H1 2014 September 2014

  19. Slide 19: 2013 Key Figures – Group

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 2013 KEY FIGURES – GROUP (€m) 2012 2013 Change Net sales 7,370 7,216 -2.1% Media Recurring EBIT before associates 358 372 +4.0% Net income – Group share 89 1,307 +€1,218m Adjusted net income – Group share* 207 172 -€35m Cash flow from operations 53

  20. Slide 20: H1 2014 Key Figures – Group

    INVESTOR PRESENTATION / SEPTEMBER 2014 H1 2014 KEY FIGURES – GROUP H1 H1 Reported Like-for-like (€m) 2013 2014 change change* Net sales 3,406 3,364 -1.2% -2.6% Recurring EBIT before associates 105 113 +7.6% / Profit (loss) – Group share 1,483 (33) -€1,516m / Adjusted net profit – Group share 33 33 =

  21. Slide 21: H1 and Q2 2014 Highlights by Division

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 H1 AND Q2 2014 HIGHLIGHTS BY DIVISION  H1 in line with forecasts, guidance on Recurring Media EBIT for 2014 confirmed  Net sales for H1 2014 at €3,364m (-2.6% on a like-for-like basis) • Net sales evolution was expected and essentially comes from

  22. Slide 22: Guidance

    INVESTOR PRESENTATION / SEPTEMBER 2014 GUIDANCE  2014 guidance on recurring media EBIT before associates: • In 2014, the Media recurring EBIT before associates is expected to increase again by 0% to 5% compared to 2013, ‒ at constant exchange rates ‒ excluding the impact of the potential disposal o

  23. Slide 23: Key Credit Highlights

    KEY CREDIT HIGHLIGHTS September 2014

  24. Slide 24: Conservative financial policy

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 CONSERVATIVE FINANCIAL POLICY  Disciplined financial policy supported by selective non-core assets disposals Net debt / EBITDA* Disposal of 3 non-core stakes in Disposal of 2013: Inaugural bond in International - EADS (7.4%): €2.28bn 2009 Magazine

  25. Slide 25: Change in net debt in 2013 and 1H 2014

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 CHANGE IN NET DEBT IN 2013 AND 1H 2014 (Net debt) / cash, in €m 3,398 Working capital needs higher in H1 vs. H2 Of which €28m related to taxes on exceptional 136 dividends 361 361 (201) (61) (1,339) (45) (91) €570m cash-flow (174) from operations i

  26. Slide 26: Diversified funding structure supported by a strong liquidity position

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 DIVERSIFIED FUNDING STRUCTURE SUPPORTED BY A STRONG LIQUIDITY POSITION  H1 2014 Gross debt breakdown: well-balanced funding sources – Strong liquidity position – Gross debt centered on bond market 22% – Financial ratio covenants of 3.5x (net debt/

  27. Slide 27: Conservative financial policy with a strong liquidity profile

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 CONSERVATIVE FINANCIAL POLICY WITH A STRONG LIQUIDITY PROFILE (EUR 1.6BN LIQUIDITY AVAILABLE), AND DIVERSIFIED FUNDING SOURCES  Leading market positions in Publishing (#3 worldwide publisher) & Services (world leader in Travel Retail)  A diversi

  28. Slide 28: Disclaimer

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 DISCLAIMER This document presents the first-half 2014 and full-year 2013 results from the consolidated financial statements of Lagardère SCA. This document does not constitute the Annual Financial Report (Rapport Financier Annuel) within the meanin

  29. Slide 29: Lagardère IR team and calendar

    FIXED INCOME INVESTOR PRESENTATION / SEPTEMBER 2014 LAGARDÈRE IR TEAM AND CALENDAR IR team details Calendar Anthony MELLOR (all time is CET) Head of Investor Relations Tel: 33 1 40 69 18 02 amellor@lagardere.fr Sophie BARBOSA Investor Relations Deputy Head Announcement of Q3 / 9 months 2014 sales Te

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