Lagardere Sa · EURONEXT:MMB

Lagardere Sa — Investor Presentation (September 2006)

28 slides from Lagardere Sa's investor presentation, September 2006

  1. Slide 1: Lagardere September 2006

    Lagardere September 2006

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement 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 the Company’s views and assumptions as of the dat

  3. Slide 3: Extracting Long Term Value: Refocusing on Media

    Extracting Long Term Value: Refocusing on Media Æ 1998 Scope: Æ Today: LAGARDERE LAGARDERE „ High Technology „ Matra Automobile 100% „ Arjil Bank „ Grolier „ Club Internet 15% „ HFM Print division LAGARDERE LAGARDERE MEDIA MEDIA „ Giraudy „ T-Online EE A ADD SS 3

  4. Slide 4: Lagardère SCA in 2005 / Lagardère Media in 2005

    Lagardère SCA in 2005 Net Sales: €13.0bn Recurring EBIT before associates: €896m Lagardère EADS EADS Lagardère Media 44% 39% 61% Media & Others 56% Lagardère Media in 2005 Net Sales: €7.9bn Recurring EBIT before associates: €503m Distribution & Distribution & Services Lagardere Active Lagardere Acti

  5. Slide 5: Lagardère Media

    Lagardère Media • PRESS No.1 special interest magazine publisher worldwide • 100% owned businesses • BOOKS No.3 consumer books publisher worldwide • DISTRIBUTION SERVICES • market-leading positions 3,800 retail outlets in 19 countries • ACTIVE: radio & TV (France) 3 leading national radio networks 3

  6. Slide 6: International Presence

    International Presence North America Europe 10% 42% France 43% Asia 5% IFRS Lagardère Media 2006 H1 Net Sales 6

  7. Slide 7: Books: Competitive Position in the World Book Market

    Books Competitive Position in the World Book Market Médias Participations 212 Westermann 214 Langenscheidt 241 Gallimard * 265 La Martinière/Le Seuil 270 Blackwell 281 Wolters Kluwer 309 Cornelsen 340 Pro-forma 2004 sales in € millions Santillana 353 Top 30 players in Consumer Publishing Taylor & Fr

  8. Slide 8: Books: 2004-2006 Transformation, International Expansion

    Books 2004-2006: the Transformation – Further International Expansion U.K. Ireland Total net sales: Hachette Partworks 40% France Quebec Orion Nether- 60% International Orion Hodder lands Headline Octopus Belgium Germany Poland France TWBG Larousse Hatier Switzerland Austria Mexico Spain Mexico Duno

  9. Slide 9: Hachette Livre: a Balanced Portfolio of Assets

    Books Hachette Livre: a Balanced Portfolio of Assets Latin America 1% Other EU 4% Other 1% Partw orks and Distribution 7% HLI & other <1% France 40% USA 16% door-to-door 11% Education 25% Reference 6% UK 26% Illustrated 12% Spain 11% Literature 39% Hachette Livre 2005 net sales including: Time Warne

  10. Slide 10: Books: Strong and Regular Growth

    Books Strong and Regular Growth 189 173 164 107 91 68 58 65 53 52 30 38 34 11 12 -3 -3 1999 * 2000 * 2001* 2002 * 2003 * 2004 * 2004 * 2005 ** 2006 ** IFRS Books Half Year EBITA Books Full Year EBITA *1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating centra

  11. Slide 11: Distribution Services: 63% of HDS sales outside France

    Distribution Services 63% of HDS sales outside France Belgium: 20% France: 37% Hungary: 8% Iberia: 16% Australia / North America: 5% Singapore / China: 1% Other Europe: 57% Switzerland: 9% 11

  12. Slide 12: Distribution Services: Organic growth & acquisitions

    Distribution Services Combination of organic growth & acquisitions ƒ HDS average annual sales growth (CAGR) of approx 6.2% from 2000 to 2005 ƒ Over 50% of this growth has been via acquisitions (Virgin, Saresco, Newslink) Organic growth & acquisitions 2000 / 2005 (€bn) 0,5 0,5 3,8 2,8 2000 sales orga

  13. Slide 13: Distribution Services: Shift from distribution to retail

    Distribution Services Continuing shift from distribution to retail Net sales breakdown CAGR Distribution Travel Retail 3.8 €bn +6.2% Retail of Media & 2.8 €bn 1.7% 37% 45% 37% +7.2% 36% +13.4% 26% 19% 2000 2005 Source : HDS Finance 2000 figures restated for comparability with 2005 13

  14. Slide 14: Distribution Services: Shift towards higher margin products

    Distribution Services Continuing shift towards higher margin products Product mix Phone cards 10% Food&beverage pdts 7% Liquors, perfumes & cosmetics 5% 19% Others 7% 29% 0% 10% 5% 16% Other 10% Music&video 14% Book Tobacco Press 55% 42% 2000 2005 Source : HDS Finance 14 2000 figures restated for co

  15. Slide 15: Distribution Services: Shift towards Central Europe and Asia Pacific

    Distribution Services CAGR Region 2003/07 Continuing shift Mature countries 1% towards Central Central Europe 9% Europe and Asia Asia Pacific 64% Pacific 0,1 0,2 0,1 Over 70% of HDS’s growth 3,8 3,4 is generated by 2003 sales Growth in Growth in Growth in 2007 sales non mature countries mature Centr

  16. Slide 16: Distribution Services: Regular growth

    Distribution Services Regular growth 106 98 101 92 88 81 61 48 40 41 40 42 33 35 31 21 22 1999 * 2000 * 2001 * 2002* 2003 * 2004 * 2004 * 2005 ** 2006 ** IFRS Distribution Half Year EBITA Distribution Full Year EBITA *1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after re

  17. Slide 17: Audiovisual: A leading player in radio in France

    Audiovisual Lagardere Active A leading player in radio in France… ƒ 3 radio stations ƒ N° 1 radio sales house Europe 1, Europe 2, RFM gathering close to 20% audience share Estimated market share (net sales) Cum. daily reach Other 7.8% 12.1% 11.3% 9.6% LAP * 9.5% 9.3% 32.8% 8.1% 7.8% 6.5% 6.2% IP 5.9

  18. Slide 18: Audiovisual: and abroad (22 radio stations)

    Audiovisual … and abroad (22 radio stations) Russia Poland Gross ad revenue share Gross ad revenue share AD point other Lagardere Lagardere Q1 2006 Other Active * 2005 3% 9% Active 26% Agora 26% 26% 7% State owned stations IP contracts Gazprom 8% * 6% 1% State owned RMG ZPR stations 18% 16% 7% Profm

  19. Slide 19: Lagardere Active - A leader in TV production

    Audiovisual Lagardere Active - A leader in TV production TV Production Theme Channels ƒ N° 1 TV group in scripted production Lagardere ƒ Leader in Children’TV segments with 38.5% 57 114 37 20 Active audience share of 4-14 age-group Prime time broadcast Telfrance 77 hours ƒ Leader in Music TV segment

  20. Slide 20: Audiovisual: Catching up fast

    Audiovisual Catching up fast 49 47 41 36 37 34 30 27 14 15 12 9 5 4 -4 -4 -9 1999* 2000* 2001 * 2002 * 2003 * 2004* 2004 * 2005 ** 2006 ** IFRS Audiovisual Half Year EBITA Audiovisual Full Year EBITA *1999-2004 French GAAP ** 2004-2005 IFRS: Recurring EBIT Before Associates after reallocating centra

  21. Slide 21: Press: An International Network in Countries

    Press An International Network in 41 Countries EUROPE NORTH AMERICA 24% 21% ASIA & OTHERS 8% Controlled subsidiaries Joint venture License 47% Brand extension dynamic 21 36 editions

  22. Slide 22: No.1 Special Interest Magazine Publisher Worldwide

    Press No.1 Special Interest Magazine Publisher Worldwide women, cars, home & interiors, movies, TV… 260 magazines 22 over 1 billion copies each year

  23. Slide 23: Press - Resisting downward pressure

    Press - Resisting downward pressure Investments in new Advertising downturn launches and internet 213 203 201 196 186 192 168 161 92 93 89 92 83 75 72 68 55 1999 * 2000 * 2001 * 2002 * 2003 * 2004 * 2004 * 2005 ** 2006 ** IFRS Press Half Year EBITA Press Full Year EBITA *1999-2004 French GAAP ** 200

  24. Slide 24: Press - New launches & emerging market

    Press - New launches & emerging market ƒ New launch spend stepped up since 2004 (around €40 mil per annum) ƒ France: Choc!, Public, Psychologies… ƒ Rest of the World: Marie-Claire (4 new countries); Psychologies (5 new countries), Shock!, Red… ƒ Strong presence in high-growth countries: ƒ Russia: No

  25. Slide 25: Press - Starting to seize the Internet opportunity

    Press - Starting to seize the Internet opportunity ƒ From paper mags to e-mags: Elle.Girl; Mood; Zurban ƒ Websites: ƒ 125 HFM websites in 27 countries ƒ Advertising: 11.6m unique visitors per month, 175m page views per month ƒ Lead generation model ƒ Fast-growing revenues (+67% at €20m expected for

  26. Slide 26: Press & Audiovisual: Stepping up the effort

    Press & Audiovisual Stepping up the effort ƒ Shift from paper culture with Internet add-ons… to content-publisher serving all digital platforms ƒ A new organisational structure: ƒ Audiovisual & Press under the same management ƒ New management, headed up by Didier Quillot ƒ New opportunities: ƒ Ongoi

  27. Slide 27: Outlook for 2006

    Outlook for 2006: ƒ Lagardère Media - Recurring EBIT before associates: up « 3% to 7% » ƒ Assumptions: ƒ $1.25 = €1 ƒ Excl. DTT costs (-€21m in 2006) ƒ Excl. Time Warner Book Group & Dalloz 27

  28. Slide 28: 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

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