INVESTOR DAY INTRODUCTION 28 MAY 2014

Transcription

1 INVESTOR DAY INTRODUCTION 28 MAY 2014

2 INVESTOR DAY PURPOSE Over the past years, we ve been building the foundations of a better growth profile Streamlining our portfolio, with the disposal of major non-core assets and minority stakes Enhancing our leadership market positions Investing in growing activities Increasing the Group s financial headroom Today s agenda: Next years strategy Elaborate on the Group s growth opportunities 2

3 GROUP PROFILE REMINDER INVESTOR DAY 28 MAY 2014

4 A DIVERSIFIED MEDIA GROUP WITH LEADING GLOBAL BRANDS AND MARKET POSITIONS World #3 trade book publisher #1 in France #2 in the UK, #3 in Spain #4 in the US A multi-segment publisher Trade and Illustrated books, Education, Partworks A leading digital player A world leader in Travel Retail More than 4,000 shops in 30 countries and 150 airports worldwide Strong expertise in three business lines Duty Free & Luxury Food & Beverage, Travel Essentials France #1 Internet & mobile media Group French #1 TV Production Group Leading magazine publisher 27 French titles 87 international editions under license Major player in Radio Leading global sports marketing, media and event management company Preeminent in football globally, with leading positions in Europe, Asia and Africa Major player in golf, tennis, olympic marketing and stadiums businesses 4

5 A STRONG PROFILE Divisions owned at 100% Enables capital reallocation, for full strategy implementation Diversity is a strength Benefit from several underlying trends and business cycles GDP, school curricula renewals, demographics, air traffic, sports events, etc. Diversified business models Complementarity B to B, B to C, etc. Diversified business profiles Mitigates risk Growth, cash generation/allocation, profitability, etc. 5

6 KEY FIGURES INVESTOR DAY 28 MAY 2014

7 IMPROVED GEOGRAPHICAL EXPOSURE Profile improved over the past 10 years Emerging countries: +8 pts International: +6 pts 12% 10% 17% 14% 21% 20% 16% 57% 42% 63% 51% 66% 63% 56% Figures excluding International Magazine Publishing disposed in Today: an international Group with diversified geographical exposure 2013 net sales breakdown by geography 5% 6% 2% 25% 30% 8% 18% 6% 39% 6% 6% 87% 1% 13% 14% 5% 6% 50% 2% 7% 11% 10% 33% Latin America, Africa, Middle East ASPAC Eastern Europe USA/Canada 32% 29% 12% 37% Western Europe France Publishing Services Active Unlimited Groupe 7

8 REDUCED EXPOSURE TO PRINT AND ADVERTISING Evolution of print revenues as % of total sales 72% 67% 61% 49% Total reduction in print exposure: -23 pts 2003* Evolution of advertising** revenues as % of total sales 16% 17% 14% 7% 2003* Total reduction in advertising exposure: -9 pts *Excluding EADS proportionate consolidation. **Advertising sales at Lagardère Active and marketing sales at Lagardère Unlimited. 8

9 SOLID CASH GENERATION AND BALANCED CASH POLICY cash sources* ~ 12.2bn cash usage* ~ 12.2bn Assets disposals ~ 7.6bn Cash flow from operations ~ 4.6bn Acquisitions 30%, ~ 3.7bn Business development: Organic growth 18%, ~ 2.1bn Deleveraging 21%, ~ 2.6bn Return to shareholders 31%, ~ 3.8bn 48% *Figures from 2003 to 2006 excluding EADS proportionate consolidation. 9

10 BUSINESS STRATEGY INVESTOR DAY 28 MAY 2014

11 FROM MEGATRENDS ANALYSIS Megatrends: Impact: Growth strategy: Digitalisation Mobility Globalisation Audience fragmentation Value shift to customer knowledge (data management) Increase in emerging countries wealthy & middle class Increase in air traffic Divest non-core activities & minority stakes Enhance leadership positions Invest in higher growth activities Reallocate cash generation and capital from assets disposals GROWTH: -Mostly organic innovation, entrepreneurship -External acquisitions 11

12 TO PORTFOLIO ANALYSIS 12% N.B: Size proportional to sales. 10% Growth potential 8% 6% 4% Digital Lagardère Unlimited Television Travel Retail 3 Invest in higher growth activities 2% Radio 0% 2% 4% Distribution Book Publishing Press 2 Enhance leadership positions 6% 8% Market 12 position Divest non-core activities and minority stakes 12

13 ACHIEVEMENTS INVESTOR DAY 28 MAY 2014

14 1 DIVEST NON-CORE ACTIVITIES AND MINORITY STAKES Non-core activities Printing activities in Spain Encyclopaedia in the US Printing activities in Italy, France and Belgium T-Online Minority stakes 2.1% of EADS Distribution in Germany French local newspapers Virgin Megastore International Magazine Publishing % of EADS Le Monde interactif Disposal of 10 French magazines % of EADS 20% of Canal+ France 25% of Amaury 2014 Launch of disposal process of Press Distribution and Integrated Retail 14

15 2 ENHANCE LEADERSHIP POSITIONS (1/3) Sustained consolidation of positions across 3 major languages (French, English and Spanish) and across all market segments (trade, education, illustrated, etc.) Acquisition of Editis (France), Grupo Anaya (Spain), Hodder Headline (UK), Time Warner Book Group (US), Albert René (France), Galore Park (UK), Quercus (UK), Hyperion (US), etc. Successful digital transition Digital accounts for 10.4% of total sales in 2013 Footprint in emerging countries Argentina, Mexico, China, Russia, India, Lebanon Continuous investment in innovation and talent sourcing - Significant success of Partworks developed in house - Major best seller authors in portfolio Ranking evolution: From world #11 in 2003 to #3 in

16 2 ENHANCE LEADERSHIP POSITIONS (2/3) Consolidation of major long term partnerships Joint ventures with ADP and SNCF Significant improvement of Travel Retail product mix Travel Retail breakdown: Duty Free development 30% 4% +11 pts 41% 8% Duty Free ** Food Service Decreased print exposure 66% -15 pts 51% Travel essentials *** *Consolidated sales + 100% of JV s sales. **Fashion, alcohol & liquors, perfumes & cosmetics, tobacco. ***News & convenience, gifts & souvenirs, electronics & media. 16

17 2 ENHANCE LEADERSHIP POSITIONS (3/3) Strengthened position of media brands in France Licensing & digital share in Elle revenues: 36% Extended geographical exposure 2% 5% 7% 82% 4% 4% 14 % 67% Extended sports portfolio 16% 84% 32% 68% 8% 7% Middle East Africa America ASPAC Europe Other Soccer Non European countries from 18% to 33% + 15 pts Other sports than soccer +16 pts

18 3 DEVELOP HIGHER GROWTH ACTIVITIES (1/3) Acquisitions and gain of concessions in Travel Retail countries 28% International* World #5 Source: Lagardère Services, ACI Worldwide Airport Traffic Report. *Consolidated net sales. 18

19 3 DEVELOP HIGHER GROWTH ACTIVITIES (2/3) Acquisitions and gain of concessions in Travel Retail countries 28% International* World #5 Today 30 countries, 150 airports 52% International* World #3 Airports classified among the world s top 100 airports in terms of passenger volume Other airports Source: Lagardère Services, ACI Worldwide Airport Traffic Report. *Consolidated net sales. 19

20 3 DEVELOP HIGHER GROWTH ACTIVITIES (3/3) Digital Development and acquisition of websites and apps Educational apps and e-learning platforms Digital innovation - Sportfive: launch of the first official application for the Orange Africa Cup of Nations and creation of the Media Center (already adopted by five German soccer clubs) - Launch of innovative offers by Lagardère Publicité: LP Player (real-time 3D augmented reality), second screen system Rights & content Built a leadership position in sports markets with the creation of Lagardère Unlimited Branch out in new business models Consulting, stadium solutions, agent TV Production development - Continuous content creation, with scripted vs. non scripted content rebalancing - Acquisitions (Les Productions 22, B3Com, Réservoir Prod, etc.) 20

21 INCREASED SHARE OF HIGHER GROWTH* POTENTIAL ACTIVITIES Higher growth* potential activities: +28 pts 39% Travel Retail excl. Relay (as % of Group sales) 25% 30% Travel Retail excl. Relay emerging markets Emerging markets Lagardère Publishing & Lagardère Active Lagardère Unlimited emerging markets 11% Lagardère Unlimited excl. emerging markets TV production Digital *Higher growth= GDP+. 21

22 AGENDA INVESTOR DAY 28 MAY 2014

23 AGENDA Hachette Livre since 2010 Successful digital transformation 3 year outlook Lagardère Publishing am am: Q&A session Publishing am am: coffee break Lagardère Services A new Lagardère Services An attractive market on which Lagardère Services is well positioned A sustained growth exceeding expectations A widely demonstrated operational excellence An ambitious vision for future 1.00 pm 2.15 pm: lunch Lagardère Unlimited Global sports market key facts and trends Overview of Lagardère Unlimited Illustration of growth perspectives by sport Digital strategy Brand licensing TV Production Lagardère Active 4.00 p.m. Q&A session 4.30 p.m. End of Investor Day 23