Investor Day 2 / 2 / 2004 INVESTOR DAY Lagardère

Transcription

1 Investor Day 2 / 2 / 2004

2 AGENDA Investor Day Introduction 8:45 9:15 Active H F M E A D S H D S Hachette Livre 9:15 10:30 10:45 12:15 Lunch 14:00-15:15 15:30 16:45 Conclusion 16:45 17:30 2

3 AGENDA Investor Day INTRODUCTION 3

4 INTRODUCTION Check-up Strategy 4

5 INTRODUCTION Check-up 5

6 CHECK-UP - Discount Margins 35% Governance 10% Conglomerate 55% 6

7 CHECK-UP - Other issues Minority equity stakes Too much of Lagardere s valuation Communication by CEO Not enough media reporting More details on Active 7

8 INTRODUCTION Check-up Strategy 8

9 INTRODUCTION Strategy 9

10 STRATEGY Track Record Mission statement Portfolio strategy Action Plan 10

11 STRATEGY - media track record Operating Income % CAGR over a 5 years period + 7% CAGR over a 10 years period 11

12 STRATEGY - media track record Operating Margin 10 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % 0 % -1 % -2 % BOOK MAGAZINE DIGITAL DISTRIBUTION 12

13 STRATEGY - media track record Acquisitions Fujingaho Rusconi Attic Futura Marie-Claire Cassel Orion Octopus Editis Virgin Canal Sat Multithématiques 13

14 STRATEGY - media track record WE DELIVERED Operating Income growth Operating margin improvement Solid performance Protection from economic downturns and some market trends Good Gearing Level Clean Balance Sheet 14

15 STRATEGY - Mission Statement Foster entrepreneurial spirit all across Lagardere Media Attract & keep talents - our most valuable asset Position value accretion at the heart of any capital allocation Give precedence to organic growth Prohibit any investment decision that might put at risk the Company 15

16 STRATEGY - Portfolio Leadership position Growth potential Consolidation Extendable model Leadership position Magazines Books Distribution TV Radio Digital Leadership position Cash contributor Growth potential Room for synergies 16

17 STRATEGY - Portfolio Banque Arjil Divest E A D S Capture stock valuation improvement No cash allocated No liability 17

18 STRATEGY - Portfolio M E D I A Review minority equity stakes T- on line Canal sat, Multithématiques Marie-Claire Strengthen print media leadership positions Expand in digital (TV) Fast growing Countries 18

19 STRATEGY - Action Plan Engines of growth - segments Organic growth All units New segments TV Broadband - mobile 19

20 STRATEGY - Action Plan Engines of growth - countries North America 21% Europe 34% France 42% Asia 3% Currencies Eastern Europe China, Russia LAGARDERE media 2002 revenues 20

21 STRATEGY - Action plan Road Map Portfolio reorganization Cost Cutting TV segment Portfolio reorganization Margin Improvement Governance adjustments Engines of growth 21

22 AGENDA Investors Day Business Units 22

23 AGENDA Investors Day CONCLUSION 23

24 CONCLUSION Margin improvement Corporate governance 24

25 CONCLUSION - Margin improvement Margins have been improved 10 % 9 % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % 0 % -1 % -2 % BOOK MAGAZINE DIGITAL DISTRIBUTION but we can do better 25

26 CONCLUSION - Margin improvement Margins targets (based on current portfolio) Book publishing Magazines publishing Distribution Digital 12% 12% 3% 10% > 7% for Media with the current portfolio > 11% without Distribution 26

27 CONCLUSION - Corporate governance Limited Partnership L C M Fees structure will be changed. Management compensation plan based on performance. Stock Option Plan 27