Lagardere Sa · EURONEXT:MMB

Lagardere Sa — Investor Presentation (November 2005)

30 slides from Lagardere Sa's investor presentation, November 2005

  1. Slide 1: Lagardere November 2005

    Lagardere November 2005 Lagardere

  2. Slide 2: Extracting Long Term Value: Refocusing on Media

    * 2 Extracting Long Term Value: Refocusing on Media  1998 Perimeter including:  Today:  High Technology LAGARDERE  Matra Automobile  Telecommunications 100%  Arjil Bank  Grolier  Club Internet  HFM Print division 15%  Giraudy LAGARDERE MEDIA  T-Online EADS

  3. Slide 3: Lagardere SCA and Lagardere Media in 2004

    3 LAGARDERE SCA in 2004 Revenues: €12.3bn Recurring EBIT before associates: €823m Lagardère EADS Media 39% EADS 61% 42.6% Lagardère Média & Other 57.4% LAGARDERE MEDIA in 2004 Revenues: €7.5bn Recurring EBIT before associates: €470m Press Distribution & 24.6% Services Press 21.5% Distribution & 35.7

  4. Slide 4: Lagardere Media

    4 LAGARDERE MEDIA • PRESS No 1 special interest magazine publisher worldwide • 100% owned businesses • BOOKS No 5 consumer books publisher worldwide • market-leading positions • DISTRIBUTION SERVICES 3,800 retail outlets in 19 countries 40% market share in the US • premier brands • ACTIVE: radio & T

  5. Slide 5: International presence

    5 International presence North America Europe 8% 43% France 45% Asia 4% LAGARDERE Media 2004 revenues IFRS

  6. Slide 6: Books: competitive position in the world book market

    6 Westermann 214 Competitive position in the world book Langenscheidt Gallimard * 241 265 market La Martinière/Le Seuil 270 Blackwell 281 Wolters Kluwer 309 Cornelsen 340 Santillana 353 Taylor & Francis Informa 360 Proforma 2004 sales in €million Time Warner Book Group 374 Mondadori 407 Top 30 playe

  7. Slide 7: Books: 2004 transformation and further international expansion

    7 2004 : the transformation Further international expansion U.K. Ireland Hachette Partworks Quebec Orion Orion Nether- Total revenues: Hodder Headline lands 54% France Octopus Belgium Germany 46% international Poland France Larousse Hatier Switzerland Austria Mexico Spain Mexique Dunod Hachette Dall

  8. Slide 8: Hachette Livre: a balanced portfolio of assets

    8 Hachette Livre: a balanced portfolio of assets Other Latin America 2% 2% France Distribution Other Education 54.6% 9.1% 1% 31.2% Partworks Other Europe 13.3% 5% UK Reference 20.2% 8.1% Spain Illustrated Literature 16.1% 16.1% 21.2% Hachette Livre 2004 revenues including Editis & Hodder Headline IF

  9. Slide 9: Book publishing is a highly segmented market

    9 Book publishing is a highly segmented market with diversified growth rates CAGR 1998-2003 9.9% 10.0% 6.9% 7.5% 5.6% 5.0% 4.0% 4.2% 2.9% 2.8% 1.4% 0.0% Education Dictionaries -1.1% -5.0% Children’s books Literature -10.0% Art books Encyclopaedias (door to door) -15.0% Partworks Practical / Travel g

  10. Slide 10: Books: Strong and regular growth

    10  Strong and regular growth 173 164 107 91 58 65 53 52 30 38 34 11 12 -3 -3 1999* 2000* 2001* 2002* 2003* 2004* 2004 IFRS** 2005** Books Half Year EBITA Books Full Year EBITA *1999-2004 FRENCH GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs  Books

  11. Slide 11: Press: An international network in 36 countries

    11 An international network in 36 countries EUROPE NORTH AMERICA 24 % 21 % ASIA & OTHERS 8% Controlled subsidiaries Joint venture Licence 47 % Brand extension dynamic  Press 36 editions

  12. Slide 12: No 1 special interest magazine publisher worldwide

    12 No 1 special interest magazine publisher worldwide women, cars, home & interiors, movies, TV… 250 magazines over 1 billion copies each year  Press

  13. Slide 13: Press: France acquisitions, new launches and re-launches

    FRANCE – ACQUISITIONS, NEW LAUNCHES & RE-LAUNCHES 2004-2005 13  Press

  14. Slide 14: Press: International acquisitions and new launches

    INTERNATIONAL – ACQUISITIONS & NEW LAUNCHES 14  Press

  15. Slide 15: Press: Stability through the advertising downturn

    15  Stability through the advertising downturn 213 203 201 196 186 192 168 92 93 89 92 83 75 72 68 1999* 2000 * 2001* 2002* 2003 * 2004* 2004 2005 ** IFRS** Press Half Year EBITA Press Full Year EBITA *1999-2004 FRENCH GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating cent

  16. Slide 16: Press: Investing for the long term

    16 Investing for the long term  2005 growth in recurring EBIT before Associates impacted by high new launch costs and weak advertising environment  2005 guidance on recurring EBIT before associates: H2 decline in line with H1 decline  Roadmap to 2007 margin target:  Cost cutting  New launch cos

  17. Slide 17: Distribution Services: sales by geography

    17 63% of HDS sales Belgium: outside 20% France France: 37% Hungary: 8% Australia / Iberia: 16% North America: Singapore / 5% China: 1% Other Europe: 57% Switzerland: 9%  Distribution Services

  18. Slide 18: Distribution Services: segments in Press Distribution

    18 2 segments in Press Distribution Publisher A Publisher B Publisher C National distributor: sales promotion, relationship with No 1 distributor in the publishers, monitoring of U.S. wholesalers Press wholesalers: reliable and cost-effective distribution of press, monitoring of retail network Whole

  19. Slide 19: 3 segments in Retail

    19 3,800 retail 3 segments in outlets (19 Retail countries)  Travel retail: press and specialty stores in travel locations  Newsstands : press stores in high streets and shopping malls  Media & entertainment products: high-street and shopping-mall retailing of books, music and video  Distributio

  20. Slide 20: Distribution Services: HDS will continue to grow

    20 Equal split between Retail & Distribution HDS will continue to grow 2004 consolidated sales : €3,675m HDS: organic growth forecasts Overall growth: 3% Press Distribution 100% Travel Retail 39% 34% 90% 1 – 2% p.a. 80% 70% 60% 4 – 5% p.a. 50% 40% 30% 20% 4 – 5% p.a. 10% 0% 27% 2004 2007 IFRS consol

  21. Slide 21: Distribution Services: Regular growth

    21  Regular growth 98 101 92 88 81 61 48 40 41 40 33 35 31 21 22 1999* 2000* 2001* 2002* 2003* 2004* 2004 2005 ** IFRS** Distribution Half Year EBITA Distribution Full Year EBITA *1999-2004 FRENCH GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs  Distributi

  22. Slide 22: Audiovisual: Radio

    22 RADIO - Lagardere Active Broadcast  France: outperforming the  International: now profitable advertising market  Russia:  Europa plus (no.2)  Europe 1: no.2 French  Retro Plus (no.6) news radio station  Poland: (cumul. audience share:  Radio Zet (no.2) 9.8%)  RadioStacja (no.6)  Europe

  23. Slide 23: Audiovisual: TV

    23 TV - Lagardere Active Broadcast  TV program production - No1 in France • no.1 Producer of French Drama (biggest prime time audiences) • no. 2 TV Show producer • Catalog of 13,000 hours of programming  Two No1 THEME CHANNELS in France Canal J (children) MCM (music)  Three DTT LICENCES  A 34% e

  24. Slide 24: Audiovisual: Early cycle recovery

    24  Early cycle recovery 49 36 37 34 30 27 14 15 12 9 5 4 -4 -4 -9 1999 * 2000 * 2001* 2002* 2003 * 2004* 2004 IFRS** 2005** Audiovisual Half Year EBITA Audiovisual Full Year EBITA *1999-2004 FRENCH GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating central costs  Audiovis

  25. Slide 25: Outlook for 2005

    25 Outlook for 2005:  Lagardere Media: Recurring EBIT before associates: guidance raised to "5% to 9%"  Assumptions:  $1.3 = €1  Excl. DTT costs (€ -8 mil in 2005)  Excl. stock option costs (estimated €30m to €35m in 2005)

  26. Slide 26: The way forward: Completing our refocusing on media

    The way forward: 2005 – 2010 opportunities 26  Completing our refocusing on media  Restructuring: margin targets to be reached by 2007  Expansion:  Organic growth  Consolidation in our main markets

  27. Slide 27: Opportunities: 2005-2007 organic growth

    Opportunities: 2005-2007 organic growth 27  Editis & Hodder Headline  Pruning the portfolio synergies  Advertising uplift  Better than expected growth expectations for Trade  Cost cutting Publishing  Books  Press  Favourable trend in retail vs  Radio: advertising market share gains wholesal

  28. Slide 28: Leading to margin uplift: 2007

    … leading to margin uplift: 2007 28 2004 Margin targets IFRS  after corporate  after corporate cost reallocation cost reallocation  after stock option costs  after stock option costs Books 11.5% 11.3% Press 9.1% 11.7% Distribution 2.75% 3.5% Services Lagardere Active 6.6% 8.9%

  29. Slide 29: Opportunities: Potential acquisitions

    Opportunities: 2005 and beyond – Potential acquisitions 29  USA  Spain: Trade Publishing  Europe: UK, Italy  UK: Trade & Education  Japan  Other Countries  Russia  …  Books  Press  Canal + Group  Eastern Europe  International Radio  Asia  TV Production  Distribution Services  Audiov

  30. Slide 30: Alternative use of cash: returning cash to shareholders

    Opportunities: 2005 & beyond – alternative use of cash 30  Returning cash to shareholders  example: €2 one-off dividend paid in 2005 • But investing in media assets remains the priority

Lagardère — Investor Presentation (November 2005) on 6ix