2009 full-year results - lagardere.com · 2009 full-year results march 10, 2010 6 market-leading...

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2009 Full-Year ResultsMarch 10, 2010

2009Good resilience despite an exceptional environment

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2009 Full-Year Results

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A historically difficult environmentin 2009…

Collapse in the rate of GDP growth in 2009Decline particularly marked in Central and Eastern EuropeGrowth in China and emerging markets

GDP growth by region

•Source : FMI


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…with an exceptional slidein the advertising market

Collapse in the advertising market across all regions

•Advertising market trend by region

•Source: Zenith Optimedia


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Good resilience from Lagardère

Only a slight fall in consolidated net sales of 4.0% on a like-for-like basis, despite a 16.6% dip in revenues at Lagardère Active, thanks to overall growth of 0.3% for our other three divisions

Recurring EBIT before associates excluding Lagardère Active up 1.6% at constant exchange rates, beating the guidance we set at the start of 2009

Adjusted earnings per share excluding EADS down by less than 10%

Reduction of €795m in net debt thanks to tighter control over working capital


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Market-leading positions reaffirmed (1/4)

Further expansion in travel retail via acquisition (New Gift Shop Inc (NGSI) in the USA) and new store openings (93 new outlets)

News and gifts retail: Lagardère Services is a leading global player with the Relay brand

Nearly 4,000 sales outlets at December 31, 2009

> Lagardère Services


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Leading player in football rights in Europe, Asia and Africa Additions to the business portfolio: in Asia, with the AFC (Asian Football Confederation) contract for the 2013-2020 periodExtension of the business portfolio: After moving into cricket with WSG in 2008:

In 2009, we obtained the European and African media rights for the 2010-2013 World Series in athleticsWe also signed a worldwide media and marketing partnership deal with One Asia in golf, and a deal to promote the Australian Open Golf championship forthe next 6 years

Management of media rights for the Olympic Games: The IOC awarded us the contract for managing the media rights to the 2014 and 2016 Olympic Games in 40 European countries

> Lagardère Sports


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A world leader in publishing: no.1 in France, the UK and Australia, and no.2 worldwide

Over 80 million copies of the Twilight saga sold worldwide to date

Driving force in the development of e-books:Pioneer in storage and distribution in France, with Numilog5% of our U.S. December 2009 salesDriving force in the setting-up of the mandate agreement with Apple

> Lagardère Publishing


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Internet: Doctissimo again a leading French player in terms of unique visitorsLagardère Active, French no.1 in i-phone apps with over 2 million downloads (Doctissimo, Public, boursier.com)Elle: Best worldwide network, with 15 million unique visitors per monthEurope 1: Leading player in catch-up radio, podcast downloads and deferred streaming

Elle: Highest circulation ranking in France for 30 years in terms of paid-for sales

Europe 1: Audience figures rising fast (3rd most popular radio station in France)

> Lagardère Active


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Major efforts to address change

Cost-cutting plans:Lagardère Active: Cost savings more than 10% ahead of €90m target set at the start of 2009Lagardère Services: Target of €35m cost cuts versus budget, revised upwards in Q2 2009 but still met

Adjustment to the business mix:Lagardère Active:

- Rationalization of the magazine portfolio: sale of 5 magazines to Bonnier in the USA: Popular Photography, Flying, Boating, Sound & Vision and American Photo

- Discontinuation of half-a-dozen magazines in various parts of the world- Arrival of the Sumitomo group as an equity investor in Fujingaho

Lagardère Services: Discontinuation of press distribution activities in Poland


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Improved balance sheet

Excellent control over working capital needs, which fell by €127m in 2009

Sharp reduction in net debt:Net debt of €1.8bn at end 2009, versus €2.6bn at end 2008Net cash of €552m generated by operating activities during 2009Net cash of €986m generated by operating and investing activities during 2009

Successful bond issue: a sign of investor confidence:Amount: €1bnAnnual interest rate: 4.875%Diversifies our sources of funding, and extends the average maturity of debt


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Chiffres clés

Chiffre d’affaires en baisse de - 3,5 % à données comparables à 3 720 M€Baisse de - 2,2 % à données brutes (3 804 M€ au 30 juin 2008)

Résultat opérationnel courant des sociétés intégrées :RESOP consolidé y compris hors pôle 186 M€ (255 M€ au 30 juin 2008)RESOP Media hors Lagardère Active 172 M€ (144 M€ au 30 juin 2008)

- en hausse de 19,4 % à données courantes- en hausse de 14,5 % à parités de change constantes (selon guidance, objectif

de variation compris entre une stabilité et une baisse n’excédant pas 10 % àparités de change constantes)

Résultat net - Part du Groupe : 318 M€ (572 M€ au 30 juin 2008)Résultat net - Part du Groupe hors EADS ajusté : 129 M€ (vs 159 M€ au 30 juin 2008), soit une baisse de 18,9 %

Outlook for 2010

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China + 10.0%

Emerging markets + 6.0%

Russia + 3.6%

USA + 2.7%

Europe + 2.0%

Central & Eastern Europe + 2.0%

Japan + 1.7%

France + 1.4%

World + 3.9%

Economic outlook still uncertain

GDP growth still weak, except in the major emerging markets•Source : FMI

2010 GDP growth estimates

http://blogduglobe.files.wordpress.com/2009/07/drapeau-japon.jpg

http://www.euroiron1.univ-rennes1.fr/Image/LogoEuropeCouleurOfficiel copie.gif


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Convalescent advertising market

Recovery in the advertising market is expected to be limited again in 2010,with just a few exceptions such as China, Russia and India

Estimated advertising market trends by country, 2010 vs. 2009

Source: BIPE - Ad Barometer, February 2010


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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 revenues relative to 2009.


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Chiffres clés

Chiffre d’affaires en baisse de - 3,5 % à données comparables à 3 720 M€Baisse de - 2,2 % à données brutes (3 804 M€ au 30 juin 2008)

Résultat opérationnel courant des sociétés intégrées :RESOP consolidé y compris hors pôle 186 M€ (255 M€ au 30 juin 2008)RESOP Media hors Lagardère Active 172 M€ (144 M€ au 30 juin 2008)

- en hausse de 19,4 % à données courantes- en hausse de 14,5 % à parités de change constantes (selon guidance, objectif

de variation compris entre une stabilité et une baisse n’excédant pas 10 % àparités de change constantes)

Résultat net - Part du Groupe : 318 M€ (572 M€ au 30 juin 2008)Résultat net - Part du Groupe hors EADS ajusté : 129 M€ (vs 159 M€ au 30 juin 2008), soit une baisse de 18,9 %

Pro-active strategy for managingour assets

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We are a diversified media group

We are committed to diversity:in our business mix: Lagardère Publishing, Lagardère Services, LagardèreActive, Lagardère Sportsin our target markets:

- B2C for Lagardère Publishing and Lagardère Services - B2B for Lagardère Active and Lagardère Sports

We have market-leading positions


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Continuing to invest in our strengths

Sport: a growth market, especially in Asia, Africa, the Middle East and South America. Catch-up acquisition opportunities in the U.S.

Digital: A fresh source of growth for Lagardère PublishingNew tools enable us to explore new sources of monetizationPotential for expansion built on strong brands in the Women’s segment(Elle, Doctissimo, Be…), News in France, and the Kids and Men’s segmentsat Lagardère Active

Travel retail: Growth market, especially in the airport segment


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Continuing to adapt our portfolioand control costs

Partnership in the international magazines business

Divestment of low-growth businesses

Divestment of minority stakes

Continuing optimization of our operating costs


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Protecting shareholder returns

* Proposed dividend, subject to approval by the Annual General Meeting

One-off dividend payouts following divestments: In 2005, we paid an exceptional dividend of €2 per share following the sale of the T-Online shares we received in exchange for Club Internet, representing a payout of €274m (nearly half of what we received for the shares)

Regular dividend growth

*


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Protecting shareholder returns

Share buybacks: Since 2003, we have repurchased 16.1 million of our ownshares for a total of €822m.

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2009 Full-Year ResultsMarch 10, 2010

2009 full-year results - lagardere.com · 2009 full-year results march 10, 2010 6 market-leading...

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