Lagardere Sa · EURONEXT:MMB
Lagardere Sa — Lagardère SCA — Investor Presentation (July 2010)
35 slides from Lagardere Sa's investor presentation, July 2010
Slide 1: Investor Presentation
Investor Presentation Investor Presentation July 2010 July 2010 / 1
Slide 2: Presentation by Dominique D'Hinnin
Presentation by Dominique D’Hinnin Co-Managing Partner of Lagardère SCA July 2010 / 2
Slide 3: Disclaimer
Disclaimer 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
Slide 4: Refocusing on Media over the past ten years
Investor Presentation Refocusing on Media over the past ten years… •Split of recurring EBIT by business •High 1998•Automotive Lagardère 2009 •Technology (*) • 12% Unlimited(**) •50% 12% Lagardère Services 20% •Media Lagardère Lagardère •38% Active Publishing 3% 65% The Media division, which accounte
Slide 5: … with fewer advertising-driven activities
Investor Presentation … with fewer advertising-driven activities •Split of Media recurring EBIT 1998 2009 Book Lagardère 19% Services 20% Lagardère Unlimited (**) Press and 12% Broadcast (*) Distribution / Lagardère 61% Services Publishing 20% 65% Lagardère Active 3% Press and Broadcast, which accou
Slide 6: Cumulative cash flows and disposal proceeds from 1999 to 2009
Investor Presentation Our cumulative cash flows and disposal proceeds from 1999 to 2009… Free cash flow: €2,839m Total Free cash flow & Disposal proceeds Disposal €7,583m proceeds: €4,744m July 2010 / 6
Slide 7: …provided most of the funds for this strategy
Investor Presentation …provided most of the funds for this strategy Shareholders’ Free cash flow: return €2,839m €2,930m Disposal proceeds: €4,744m Media Acquisitions Increase in Debt: €7,055m €2,402m Free cash flow fully distributed to shareholders Media acquisitions financed by asset disposals (2/
Slide 8: A clear strategy for the future
Investor Presentation A clear strategy for the future Lagardère is a diversified media group focused on 4 main divisions: Publishing, Active (Press, Radio and TV), Services and Unlimited • Our diversity (cyclical-acyclical/ mature-non mature businesses/ domestic-international/ B2B-B2C) improves our
Slide 9: Lagardère SCA Key Figures
Investor Presentation Lagardère SCA Key Figures Revenues: €7,892m / -4.0% like-for-like Recurring EBIT: €461m vs. €647m in 2008 Net income: €137m vs. €593m in 2008 Adjusted net income (excl. EADS): €323m / -9.8% Net debt at end 2009: €1,824m vs. €2,619m in 2008 Adjusted earnings per share (excl. EAD
Slide 10: Strong international footprint
Investor Presentation Strong international footprint •2009 revenues: €7,892m •2009 Media Recurring EBIT: €463m Lagardère Lagardère Lagardère Lagardère Active Unlimited(*) 3% Active Publishing 22 % 12 % 29 % 6% 20 % •38 •19 65 % % Lagardère % 43 % Unlimited(*) Lagardère Lagardère Services Services La
Slide 11: Lagardère Publishing
Lagardère Publishing July 2010 / 11
Slide 12: Balanced Portfolio of Assets
Investor Presentation Balanced Portfolio of Assets Lagardère Publishing 2009 revenues: €2,273m Latin Rest of the Distribution Other America Education Others World France Partworks (Europe) 3% 12% 31% 9% 10% 10% 2% 2% 19% 8% 3% 9% Reference 3% 22% 21% 36% 9% 21% 36% 15% USA Spain UK Illustrated Liter
Slide 13: Competitive Position in the World Trade Book Market
Investor Presentation Competitive Position in the World Trade Book Market 5,060 2,273 1,900 1,721 1,717 Lagardère Publishing: No.2 1,641 1,559 1,369 2008-2009 - revenues(*) in €m 1,338 1,264 927 902 886 812 780 Note 1: The impact of the USD exchange rate is a key factor for all American players. Not
Slide 14: Growth opportunities for Lagardère Publishing?
Investor Presentation Growth opportunities for Lagardère Publishing? Proactive exploration of business opportunities in major emerging markets • JV with Phoenix Publishing & Media Group (PPMG) in China • Significant footprint in Latin America • Indian startup already a success Pursuit of digital tra
Slide 15: Trends in Lagardère Publishing Recurring EBIT
Investor Presentation Trends in Lagardère Publishing Recurring EBIT 301 239 246 220 189 173 164 107 112 91 65 68 71 71 52 58 53 30 38 34 11 12 -3 -3 1999 * 2000 * 2001 * 2002 * 2003 * 2004 * 2004 2005 ** 2006 *** 2007 *** 2008 *** 2009**** IFRS ** Publishing Half Year Rec EBIT Publishing Full Year R
Slide 16: Lagardère Active
Lagardère Active July 2010 / 16
Slide 17: Broadcast (2009 revenues: €454m, EBIT: €11m)
Investor Presentation Broadcast (2009 revenues: €454m, EBIT: €11m) 55% of Lagardère Radio’s business is in 46% of the Broadcast business is in TV: France: our 3 stations (Europe 1, Virgin Radio, RFM) together have nearly 20% audience share… • Strong position in TV Production in France • Successful l
Slide 18: Lagardère Active: trends in Broadcast Recurring EBIT
Investor Presentation Lagardère Active: trends in Broadcast Recurring EBIT 95 77 77 53 49 47 44 41 36 37 34 30 27 14 15 12 11 9 8 5 4 -4 -4 -9 1999 * 2000 * 2001 * 2002 * 2003 * 2004 * 2004 2005 ** 2006 *** 2007 *** 2008 *** 2009**** IFRS ** Broadcast Half Year Rec EBIT Broadcast Full Year Rec EBIT
Slide 19: Press (2009 revenues: €1,271m)
Investor Presentation Press (2009 revenues: €1,271m) •An international network in 42 countries WESTERN EUROPE 21% •RUSSIA RUSSIA 9% 9% UNITED STATES 18% ASIA & OTHERS 9% Controlled subsidiaries: 124 magazines Joint venture: 37 magazines License: 51 magazines Brand extension dynamic FRANCE 43% 42 edi
Slide 20: Lagardère Active: trends in Press Recurring EBIT
Investor Presentation Lagardère Active: trends in Press Recurring EBIT 213 203 201 192 196 186 168 161 137 115 114 92 93 89 92 83 75 72 68 62 61 55 1 4 1999 * 2000 * 2001 * 2002 * 2003 * 2004 * 2004 2005 ** 2006 *** 2007 *** 2008 *** 2009**** IFRS ** Press Half Year Rec EBIT Press Full Year Rec EBIT
Slide 21: Cost savings plans
Investor Presentation Cost savings plans €m One Step Further Plan 250 Initial Active 2009 Plan 100 200 40 150 120 80 * 100 20 50 36 86 30 0 2007 Savings 2008 Additional 2009 Additional 2010 Additional 2010 Projected savings savings savings cumulative savings * Before inflation, including around €20m
Slide 22: Lagardère Services
Lagardère Services July 2010 / 22
Slide 23: 70% of revenues outside France
Investor Presentation 70% of revenues outside France •Belgium: 15% •France: 30% •Eastern Europe: •2009 revenues: €3,387m 16% •North America: 6% •Switzerland: 11% •Spain: 14% •Australia/ Singapore/China: 4% •Other Europe: 57% • •Rest of the world: 2% July 2010 / 23
Slide 24: 3 shifts to improve growth & profitability
Investor Presentation 3 shifts to improve growth & profitability From distribution to retail: distribution 32% of revenues in 2009 vs. 45% in 2000. From low to higher margin products From mature countries toward Eastern Europe (16% of sales in 2009) & Asia (4% of sales in 2009) In 2010, the recovery
Slide 25: Trends in Lagardère Services Recurring EBIT
Investor Presentation Trends in Lagardère Services Recurring EBIT 127 116 106 109 98 101 92 91 88 81 61 48 45 46 40 41 40 42 33 35 31 27 21 22 1999 * 2000 * 2001 * 2002 * 2003 * 2004 * 2004 2005 ** 2006 *** 2007 *** 2008 *** 2009**** IFRS ** Distribution Half Year Rec EBIT Distribution Full Year Rec
Slide 26: Lagardère Unlimited
Lagardère Unlimited(1) (1) From May, 31st 2010 ; ex Lagardère Sports July 2010 / 26
Slide 27: European leader in sports rights management
Investor Presentation European leader in sports rights management •in € million •2008 •Revenues •444 •Operating Margin • 16.9% •2009 •Revenues •507 •Operating Margin • 11.0% July 2010 / 27
Slide 28: European leader in sports rights management
Investor Presentation European leader in sports rights management •2008 •2009 Other Other 16% Germany 16% Germany 24% 21% Asia 6% Other UK European 8% countries 28% Asia Other 22% European France countries 9% 37% UK France 5% 8% July 2010 / 28
Slide 29: A value chain organized around 6 segments
Investor Presentation A value chain organized around 6 segments ACADEMIES REPRESENTATION EVENTS CONSULTING MARKETING MEDIA * * LAGARDÈRE OWNS 30 % OF SADDLEBROOK ACADEMY July 2010 / 29
Slide 30: Lagardère: Guidance for 2010
Lagardère: Guidance for 2010 July 2010 / 30
Slide 31: Guidance for 2010
Investor Presentation Guidance for 2010 Very slight increase in Media recurring EBIT before associates at constant exchange rates, excluding the effects of a return to normal for Lagardère Publishing. Our guidance for Lagardère Media overall is a decrease of around 10%, assuming flat advertising r
Slide 32: Lagardère IR Team
Lagardère IR Team: Virginie BANET Investor Relations Director Tel: 33 1 40 69 18 02 [email protected] Nathalie FRIZZOLE Investor Relations Tel: 33 1 40 69 67 88 [email protected] Hélène MARTIN Assistant Tel: 33 1 40 69 19 22 Fax: 33 1 40 69 22 72 [email protected] Address: 4 rue de Presbou
Slide 33: Appendix
Appendix Lagardere July 2010 / 33
Slide 34: Magazine portfolio restructuring plan completed
Investor Presentation Magazine portfolio restructuring plan completed •243 32 •212 •2 27 27 19 18 167 132 •Fully owned -26% •Reduction in number of magazines published: 43 37 •JV 50 51 •Licenses 26 •End 2006 •Sold •Closed Shift to •Fully •Launches •Acquisitions Current license owned •(incl. 7 portfo
Slide 35: Investor Presentation
Investor Presentation Investor Presentation July 2010 July 2010 / 35