Lagardere Sa · EURONEXT:MMB
Lagardere Sa — Lagardère SCA — Investor Presentation (July 2008)
26 slides from Lagardere Sa's investor presentation, July 2008
Slide 1: July 2008
© Frédérik Froument - J.P.Thomas/Agence FEP July, 2008
Slide 2: Warning
Warning 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 and
Slide 3: Lagardère SCA at end December 2007
Lagardère SCA at end December 2007 Global leader in Consumer Media Refocused on 4 activities: • Lagardère Publishing • Lagardère Active • Lagardère Services • Lagardère Sports 10% stake in EADS 10-year trend of regular profitability improvement Three growth areas: • sports rights management • digita
Slide 4: International Presence
International Presence North America 11% Europe 45% France 37% Africa & Middle East 1% Asia 5% Latin America 1% Lagardère Media 2007 sales 4
Slide 5: Lagardère SCA at end December 2007
Lagardère SCA at end December 2007 Solid set of figures: Net sales: €8,582m / + 8.5% Recurring EBIT: €636m / + 22% Net income: €534m / + 83,5% 5
Slide 6: 2007 Revenues and Recurring EBIT breakdown
Lagardère SCA at end December 2007 2007 Full-Year Revenues: 2007 Rec EBIT breakdown: €8,582m €636m Lagardère Lagardère Lagardère Lagardère Sports Publishing Lagardère Sports Publishing €440m €2,130m Services €67m €239m €116m 11% 5% 25% 18% 37% 43% 21% 12% 6% 22% Lagardère Press Broadcast & Broadband
Slide 7: Lagardère Publishing: Competitive Position in the World Book Market
Lagardère Publishing Competitive Position in the World Book Market Lagardère Publishing: No.2 2006-2007 sales(*) in € million Top 15 Consumer Book Players (Trade / Education including Academic) * except Planeta, 2003 and Holtzbrinck, Shogakukan, Shueisha, 2005 7
Slide 8: Lagardère Publishing: A Balanced Portfolio of Assets
Lagardère Publishing A Balanced Portfolio of Assets Rest of the World Others France Others Education Others Distribution (Europe) 6% 11%11%3% Partworks 13% 20% 32% 32% 10% 3% 2% 16% 16% 10% 10% Reference 16% 21% 21% 37% USA Spain Illustrated UK Literature Lagardère Publishing 2007 net sales (€2,130m
Slide 9: What next for Lagardère Publishing?
Lagardère Publishing What next for Lagardère Publishing? Continued organic growth Further consolidation: UK, Spain (trade) & USA (trade) 9
Slide 10: Lagardère Publishing: Strong, regular growth
Lagardère Publishing Strong, regular growth 239 220 189 173 164 107 91 58 65 68 71 52 53 30 38 34 11 12 -3 -3 1999* 2000* 2001* 2002* 2003* 2004* 2004** 2005 **2006***2007*** IFRS Books Half Year Rec EBITA Books Full Year Rec EBITA * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Ass
Slide 11: Lagardère Services (2007 sales: €3,721m)
Lagardère Services (2007 sales: €3,721m) 63% of sales outside France Poland: 4% Belgium: 14% France: 37% Hungary: 9% Spain: 14% Australia / North America: 6% Singapore / China: 4% Other Europe: 54% Switzerland: 9% Source: LS Finance 2007 figures 11
Slide 12: Lagardère Services shifts to improve growth & profitability
Lagardère Services 3 shifts to improve growth & profitability: 1. From distribution to retail: distribution 32% of sales in 2007 vs 45% in 2000 2. From low to high margin products 3. From mature countries toward Central Europe (17% CAGR 04/07) & Asia (37% CAGR 04/07) 12
Slide 13: Lagardère Services: Regular growth
Lagardère Services Regular growth 116 106 109 98 101 92 88 81 61 48 45 40 41 40 42 33 35 31 21 22 1999* 2000* 2001* 2002* 2003* 2004 * 2004** 2005** 2006***2007*** IFRS Distribution Half Year Rec EBITA Distribution Full Year Rec EBITA * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before
Slide 14: Lagardère Active: A newly merged entity
Lagardère Active: A newly merged entity (2007 sales: €2,291m) 14
Slide 15: Active: Audiovisual (2007 sales: €509m)
Active: Audiovisual (2007 sales: €509m) Leading player in Radio In France: Market share 9.9% 32.5% 28.7% 28.9% Abroad: 23 stations in Eastern Europe mainly - gross ad revenue share 2007: Russia 25%, Poland 27%, Czech Republic 50%... Leading player in TV Production Leading player in Theme Channels Pr
Slide 16: Active: Audiovisual: Catching up
Active: Audiovisual Catching up 77 77 49 47 41 44 36 37 34 30 27 12 14 15 9 5 4 -4 -4 -9 1999* 2000* 2001* 2002* 2003* 2004* 2004** 2005** 2006***2007 *** IFRS Audiovisual Half Year Rec EBITA Audiovisual Full Year Rec EBITA * 1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates
Slide 17: Magazine footprint & Revenue split
Magazine footprint & Revenue split (2008 footprint & 2007 revenue split excluding regional dailies) An international network in 44 countries magazines WESTERN radio EUROPE TV 24% EASTERN EUROPE 11% NORTH AMERICA 21% ASIA & OTHERS 8% Controlled subsidiaries: 160 magazines Joint venture: 31 magazines
Slide 18: Active: Press (2007 sales: €1,782m)
Active: Press (2007 sales: €1,782m) Leading Special Interest Magazine Publisher Worldwide Women, cars, home & interiors, celebs, TV, etc 18
Slide 19: Active: Press: Turning around
Active: Press Turning around Investment Advertising downturn in new launches Turnaround 213 203 192 201 196 186 168 161 137 115 92 93 89 92 75 83 72 68 55 62 1999* 2000* 2001* 2002 * 2003* 2004* 2004** 2005** 2006***2007*** IFRS Press Half Year Rec EBITA Press Full Year Rec EBITA * 1999-2004 French
Slide 20: Active 2009 portfolio reshuffle
Active 2009 portfolio reshuffle As forecast Achieved as of Full year impact New estimate (based on 2006 in Jan. 2007 June 12th, 2008 figures, €m *) Revenue EBIT Revenue EBIT Revenue EBIT Divesting non core assets -260 +4 -270 -1 -270 -1 Country portfolio - shift -40 +1 -28 +2 -28 +2 to license model
Slide 21: Active: 2007-2010: transforming steps
Active: 2007-2010: transforming steps Digital Strategy Growing digital sales and profits: Organically: from 1% of Lagardere Active sales in 2006 to 5% by 2009 Digital sales at end December 2007: 3.1% Lagardère Active sales Via acquisitions (depending on opportunities and prices): a potential extra 5
Slide 22: Lagardère Sports (2007 sales: €440m)
Lagardère Sports (2007 sales: €440m) A New Division: Sport5 + IEC, + WSG in 2008 22
Slide 23: Lagardère Sports: European leader in sports rights management
Lagardère Sports European leader in sports rights management in € million 2007 Revenues 440 Operating Margin %15.2 23
Slide 24: Lagardère Sports: 3 axes of expansion
Lagardère Sports: 3 axes of expansion November 2006 December 2007 TV Rights Trading Media: Media Production New Media Platform Web services Sponsorship TV Rights Trading Marketing: Hospitality, Stadium Management Events ownership Sponsorship CRM (Customer Relationship Management) Activity Activity C
Slide 25: Lagardère: Outlook for 2008
LAGARDERE: Outlook for 2008 Recurring EBIT before associates expected to grow in 2008 from «3% to 7%» versus 2007 level Assumptions: $1.50 = €1 25
Slide 26: Lagardère IR Team
Lagardère IR Team: Laurent Carozzi Investor Relations Director Tel: 33 1 40 69 18 02 lcarozzi@lagardere.fr Béatrice de Clermont Tonnerre Investor Relations Tel: 33 1 40 69 16 60 bct@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 d