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2013 First-Half Results

August 29, 2013August 29, 2013

Disclaimer

2

Certain statements contained in this document are forward-looking statements which address our vision of expected future business and financial performance. Undue reliance should not be placed on such statements which are subject to risks and uncertainties.

When used in this document, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend” and “plan” are intended to identify forward-looking statements. Such statements include, without limitation, projections for improvements in process and operations, revenues and operating margin growth, cash flow, performance, new products and services, current and future markets for products and services and other trend projections as well as new business opportunities.

These forward-looking statements are based upon a number of assumptions which are subject to uncertainty and trends that may differ materially from future results, depending on a variety of factors including without limitation:

• general economic conditions, including in particular growth in Europe and North America;• legal, regulatory, financial and governmental risks related to the businesses;• certain risks related to the media industry (including, without limitation, technological risks);• the cyclical nature of some of the businesses.

Please refer to the most recent Reference Document (Document de référence) filed by Lagardère SCA with the French Autorité des marchés financiers for additional information in relation to such factors, risks and uncertainties.Lagardère SCA undertakes no obligation to update or review the forward-looking statements referred to above. Consequently Lagardère SCA is not liable for any consequences that could result from the use of any of the above statements.

2013 First-Half Results / August 29, 2013

Contents

3

Key performance figures pages 4 to 7

Performance by division pages 8 to 16

Group financial results pages 17 to 24

Appendices pages 25 to 37

Significant events pages 38 to 64


Key performance figures

4

Changes of scope: main items

5

Lagardère Active• Disposal of 25% interest held in Éditions P. Amaury in May 2013.• Full consolidation of LeGuide.com group for the six months of 2013. In 2012, it was

integrated as of July 1.• Full consolidation of BilletRéduc.com for the six months of 2013. In 2012, only the

balance-sheet of this entity acquired at year-end was consolidated.

Lagardère Services• Six months full consolidation of AdR Retail (operator of duty free/duty paid shops in

Rome airports) in 2013. In 2012, it was consolidated as of October 1.

EADS• Disposal of 7.4% interest holding in EADS group on April 12, 2013.


H1 2012 H1 2013

Group net sales – H1 2013

6*At constant perimeter and exchange rate, see definition slide 37.

€3,389m €3,406m

€3,332m €3,333m

Net sales

Like-for-likeH1 2013 net sales*

0%

like-for-likeLike-for-like

H1 2012 net sales*

The good performance in General Literature, TV Production and Duty Free enabled to offset the still-difficult economy in Europe and declining print

press markets.


+0.5%

reported

Key figures – Group

7

(€m) H1 2012 H1 2013 Change

Net sales 3,389 3,406 +0.5%

Media Recurring EBIT before associates* 112 138 +€26m

Net income – Group share 36 1,483 -

Adjusted net income – Group share** 30 33 +€3m

Cash from operating activities*** 2 (11) -€13m

Net debt 1,700**** 900 -€800m

*See definition slide 37.**Excluding the contribution of EADS and non-recurring/non-operating items.***Including in H1 2013 a €40m payment of tax contribution on dividends.****Net debt 31/12/2012.


Performance by division

8

Education14%

Illustrated Books14%

General Literature

43%

Reference4%

Other25%

France32%

UK & Australia

19%

USA & Canada

25%

Spain6%

Other18%

Lagardère Publishing: activity

9*% of net sales in H1 2012.

32%*

20%*

19%*

6%*

23%*

H1 2013 net sales by geographical area H1 2013 net sales by activity

H1 2013 net sales: €917m are up (+3.1% like-for-like) thanks to:• strong activity in France (+5.5%) and in the United States (+7%), especially in

General Literature (best-sellers by E L James and Dan Brown in France, releases of films tied to novels published by the Group in the United States);

• ongoing e-books momentum: Digital represents 34% of Trade sales in the United States and 31% of Adult Trade sales in the United Kingdom in H1 2013, representing 11.3% of total net sales.


41%*

15%*

15%*

4%*

25%*

Lagardère Publishing: profitability

10

(€m) H1 2012 H1 2013 ChangeNet sales (a) 905 917 +1.4%Recurring EBIT before associates (b) 57 71 +€14mOperating margin (b)/(a) 6.3% 7.7% +1.4 ptIncome from associates 1 1 -Non-recurring/non-operating items 0 (12) -EBIT 58 60 +€2m

H1 2013 profitability

• Profitability is up due to the strong sales based on best-sellers.

Non-recurring and non-operating items comprise mainly impairment of goodwill of Salvat* (€10m).


*Partworks in Spain and Latin America.

Lagardère Active: activity

11

France87%

International13%

10%*

90%*

Press & other60%

Television & Audiovisual Production

19%

Radio21%

23%*

16%*

61%*

*% of net sales in H1 2012.


H1 2013 net sales: €471m (+0.3% like-for-like).

• Activity was driven in H1 by a high level of deliveries to date in TV Production, which is not to be extrapolated to the rest of the year.

• Good performance from Radio in France (Europe 1), a “defensive” media which partially offsets declining magazine trend.

• Overall advertising was down by 6.2%, and magazine circulation by 7.6%.• International sales grew due to the newly acquired LeGuide.com and the development

of international TV productions.


Lagardère Active: profitability

12

(€m) H1 2012 H1 2013 Change Net sales (a) 450 471 +4.7%Recurring EBIT before associates (b) 31 33 +€2mOperating margin (b)/(a) 7% 7% +0 ptIncome from associates (1) (5) -Non-recurring/non-operating items (22) (274) -EBIT 8 (246) -€254m


• Profits are slightly up due to new Digital activities and ongoing cost control.• This is partially offset by the declining trends in Magazines.

Non-recurring and non-operating items comprise mainly impairment losses on intangible assets (€209m) and associates (€45m).


France28%

Belgium13%

Eastern Europe

20%

USA & Canada

6%

Spain9%

Switzerland10%

Asia & Australia

8%

Other6%

Lagardère Services: activity

13

28%*

10%*

6%*

19%*

13%*

5%*

7%*12%*

41%

WholesaleDistribution

23%

56%*

26%*

18%*

IntegratedRetail18%

59%44%*


*% of net sales in H1 2012.

H1 2013 net sales: €1,814m (-0.8% like-for-like).

• The good performance overall in Duty Free and Food Services is offset by the decline in print products which impacts both the news & convenience in Travel Retail, and Wholesale Distribution.

• The Asia-Pacific area enjoys a buoyant level of sales (+6.3%).• Travel Retail activities are up (+6.6% reported and +2.0% like-for-like) and overall

Distribution activity is down (-9.1% reported and -4.5% like-for-like).


Lagardère Services: profitability

14

(€m) H1 2012 H1 2013 ChangeNet sales (a) 1,821 1,814 -0.4%Recurring EBIT before associates (b) 37 29 -€8mOperating margin (b)/(a) 2.0% 1.6% -0.4 ptIncome from associates 2 2 -Non-recurring/non-operating items (9) (41) -EBIT 30 (10) -€40m


• Good performance in Duty Free and Food Services. • Despite improved product mix in news and convenience, slight decline in the Travel

Essentials profitability (Relay) due to negative print product trends.• Decrease of LS distribution results due to print decline, partially offset by cost control

and successful diversification initiatives.

Non-recurring and non-operating items mainly due to impairment of goodwill in Press Wholesale Distribution in Switzerland (€30m).


Media rights40%

Marketing rights46%

Other14%

Lagardère Unlimited: activity

15

13%*

41%*

46%*


Germany26%

UK10%

France12%

Rest of Europe

13%

Asia17%

Rest of World22%


16%*

24%*

23%* 21%*

5%*

11%*

H1 2013 net sales: €204m (-7.1% like-for-like). This trend in sales reflects:

• in Asia the expected negative calendar effect, and the sales accounting impact of the new commission based AFC** contract (vs. buy-out previously);

• a downscaling of media rights trading business in Europe…• …which is partially offset by a good momentum in marketing activities, notably for

German football clubs.

*% of net sales in H1 2012.**Asian Football Cup.

Lagardère Unlimited: profitability

16

(€m) H1 2012 H1 2013 ChangeNet sales (a) 213 204 -4.6%Recurring EBIT before associates (b) (13) 5 +€18mOperating margin (b)/(a) - 2.4% -Income from associates 1 - -Non-recurring/non-operating items* (8) (7) -EBIT (20) (2) +€18m


H1 2013 operating profitability

• Profits are up due mainly to the -€22m provision booked in H1 2012 for the IOC** contract.

• In addition, the trend in profitability reflects the negative impacts of the unfavorable competition calendar in Asia, and of the reduction of media rights trading activity in Europe, which is partially offset by the positive contribution of German football clubs.

*Amortisation of acquisition-related intangible assets was -€6m in H1 2012 and -€5 in H1 2013.**International Olympic Committee.

Group financial results

17

Consolidated income statement (1/2)

18

H1 2012 H1 2013

(€m)Lagardère

MediaOther

activities* TotalLagardère

MediaOther

activities* TotalNet sales 3,389 - 3,389 3,406 - 3,406

Recurring EBIT before associates** 112 (6) 106 138 (33) 105

Income from associates*** 3 42**** 45 (2) - (2)Non-recurring items (39) - (39) (334) 1,823 1,489

Restructuring costs (14) - (14) (14) - (14)

Gains/(losses) on disposals - - - (13) 1,823 1,810

Impairment losses (9) - (9) (294) - (294)

Amortisation of acquisition-related intangible assets and other acquisition-related expenses

(16) - (16) (13) - (13)

EBIT 76 36 112 (198) 1,790 1,592

*Non-media, Canal+ France and EADS. / **See definition slide 37. / ***Before impairment losses. / ****EADS contribution.


Consolidated income statement (2/2)

19

H1 2012 H1 2013

(€m)Lagardère

MediaOther

activities* TotalLagardère

MediaOther

activities* Total

EBIT 76 36 112 (198) 1,790 1,592

Net interest expense (11) (29) (40) (15) (40) (55)Income before tax 65 7 72 (213) 1,750 1,537Income tax expense (44) 20 (24) (22) (24) (46)Total net income 21 27 48 (235) 1,726 1,491Attributable to minority interests (12) - (12) (8) - (8)

Net income – Group share 9 27 36 (243) 1,726 1,483

*Non-media, Canal+ France and EADS.


Adjusted net income – Group share

20*Net of taxes.

(€m) H1 2012 H1 2013

Net income attributable to the Group 36 1,483

Equity accounted contribution from EADS (42) -

Amortisation of acquisition-related intangible assets and other acquisition-related expenses* 13 10

Impairment losses on goodwill, tangible and intangible fixed assets* 10 263

Restructuring costs* 13 12

Gains (losses) on disposals* - (1,788)

Tax contribution on dividends paid to shareholders - 40

Exceptional bonus for employees* - 13

Adjusted net income excluding EADS 30 33


Consolidated statement of cash flows

21

(€m) H1 2012 H1 2013Cash flow from operations before interest, taxes 237 178

Changes in working capital (191) (91)

Cash flow from operations 46 87

Interest paid & received, income taxes paid* (44) (98)

Cash generated by/(used in) operating activities 2 (11)

Acquisition of property, plant & equipment and intangible assets (103) (163)

Disposal of property, plant & equipment and intangible assets 4 1

Free cash flow (97) (173)

Acquisition of financial assets (107) (47)

Disposal of financial assets 16 2,381

(Increase)/decrease in short-term investments 10 14

Net cash from operating & investing activities (178) 2,175


*Including in H1 2013 a €40m payment of tax contribution on dividends.

Change in net debt in H1 2013

22


€1,700m -€2,175m

€1,332m €43m €900m

Net debt as of 31/12/2012

Net cash from operating &

investing activities

Dividends paid FX, scope and otheritems

Net debt as of 30/06/2013

Consolidated balance sheet

(€m) Dec. 31, 2012 June 30, 2013Non-current assets (excl. investments in associates) 3,922 3,688Investments in associates 1,451 1,303Current assets (other than short-term investments and cash) 2,847 2,959Short-term investments and cash 703 627Held-for-sale assets 437 -TOTAL ASSETS 9,360 8,577Stockholders’ equity 2,991 3,130Non-current liabilities (excl. debt) 670 686Non-current debt 2,165 1,282Current liabilities (excl. debt) 3,296 3,234Current debt 238 245Held-for-sale liabilities - -TOTAL LIABILITIES AND EQUITY 9,360 8,577

23


Sound financial position

24

H1 2013• Gearing* is 29% in H1 2013 vs. 57% in 2012.

*Net debt-to equity ratio.**See definition slide 37. Last 12 months rolling EBITDA.

***Short-term investments and cash.****Group credit facility excluding authorised credit lines at divisions level.

€627m €245m

€659m

€11m€99m

€495m

€8m €10m

€1,645m

Preservation of liquidity and balanced debt repayment schedule

Authorisedcredit lines****:

Treasury***:

€2,272m

88%

12%

Gross debt breakdown: well-balanced funding sources

Bonds

Bank loanand other


30/06/2012 31/12/2012 30/06/2013

3,1x

€1,700m

€900m

1,8x

Net debt/ EBITDA**

€1,729m

3,1x

Appendices

25

LagardèrePublishing

51%

LagardèreActive24%

LagardèreServices

21%

LagardèreUnlimited

4%

Group profile – H1 2013

26

Net sales by division Recurring EBIT by division

Net sales by geographic area H1 2012 Net sales by geographic area H1 2013

Emerging countries: 22%Emerging countries: 22%

France36%

Western Europe

32%

Other3%

Asia-Pacific

7%

Eastern Europe

12%

USA & Canada

10%

France36%

Western Europe

32%

Other3%

Asia-Pacific

7%

Eastern Europe

12%

USA & Canada

10%

Lagardère Publishing

27%

Lagardère Active14%

Lagardère Services

53%

Lagardère Unlimited

6%


Recap of Media performance by division

27

Net sales

(€m) H1 2013 net sales €m change Change vs H1 2012

Lagardère Publishing 917 +€12m +1.4%Lagardère Active 471 +€21m +4.7%Lagardère Services 1,814 -€7m -0.4%Lagardère Unlimited 204 -€9m -4.6%Total Media 3,406 +€17m +0.5%

Recurring Media EBIT before associates(€m) H1 2013 EBIT €m change Change vs H1 2012

Lagardère Publishing 71 +€14m +24.2%Lagardère Active 33 +€2m +5.5%Lagardère Services 29 -€8m -21.4%Lagardère Unlimited 5 +€18m -Total Media 138 +€26m +22.6%


EBITDA

28

(€m) H1 2012 H1 2013 €m change Change vs H1 2012

Lagardère Publishing 68 83 +€15m +22.0%Lagardère Active 30 33 +€3m +11.0%Lagardère Services 72 63 -€9m -12.3%Lagardère Unlimited 41 41 - -1.0%Total Media 211 220 +€9m +4.4%

Other activities 26 (28) -€54m -TOTAL 237 192 -€45m -18.9%


29

Analysis of non-recurring/non-operating items in H1 2013

(€m)Lagardère Publishing

Lagardère Active

Lagardère Services

Lagardère Unlimited

Total Lagardère

MediaOther

activitiesTotal

Lagardère

Restructuring costs (1) (8) (2) (3) (14) - (14)

Gains/(losses) on disposals - (11) (2) - (13) 1,823 1,810

Impairment losses (10) (254) (30) - (294) - (294)

Amortisation of acquisition-related intangible assets and acquisition-relatedexpenses

(1) (1) (7) (4) (13) - (13)

TOTAL (12) (274) (41) (7) (334) 1,823 1,489


Main associates

30

Balance Sheet Income Statement

(€m)2012(as of

31/12/2012)

2013(as of

30/06/2013)

2012(as of

30/06/2012)

2013(as of

30/06/2013)

EADS (7.39%) - - 42 -

Canal+ France (20%) 1,154 1,154 - -

Marie Claire (42%) 125 90 2 (35)

Amaury (25%) 98 - - -

Other associates 74 59 1 (12)

TOTAL 1,451 1,303 45 (47)


Cash flow statement data – Lagardère Publishing

31

(€m) H1 2012 H1 2013

Cash flow from operations before interest, taxes 60 77


Cash flow from operations (74) (18)

Interest paid & received, income taxes paid (17) (28)

Cash generated by/(used in) operating activities (91) (46)


Disposal of property, plant & equipment and intangible assets - -



Disposal of financial assets - -

(Increase)/decrease in short-term investments - -

Net cash from operating & investing activities (106) (64)


Cash flow statement data – Lagardère Active

32

(€m) H1 2012 H1 2013


Changes in working capital 24 (20)



Cash generated by/(used in) operating activities 13 (20)


Disposal of property, plant & equipment and intangible assets 1 -

Free cash flow 9 (27)


Disposal of financial assets 15 98


Net cash from operating & investing activities (44) 67


Cash flow statement data – Lagardère Services

33

(€m) H1 2012 H1 2013





Cash generated by/(used in) operating activities (10) (1)


Disposal of property, plant & equipment and intangible assets 3 1



Disposal of financial assets 1 -

(Increase)/decrease in short-term investments 10 14

Net cash from operating & investing activities (51) (57)


Cash flow statement data – Lagardère Unlimited

34

(€m) H1 2012 H1 2013


Changes in working capital (15) 56



Cash generated by/(used in) operating activities 41 97


Disposal of property, plant & equipment and intangible assets - -

Free cash flow (2) 21


Disposal of financial assets - 10


Net cash from operating & investing activities (24) 3


Off balance sheet commitments

35

(€m) 2012 H1 2013

Commitments to purchase shares from third parties (other than minority interests) - -

Commitments given in connection with ordinary activities:

- contract guarantees and performance bonds 106 138

- guarantees in favour of third parties or non-consolidated companies 34 26

- other commitments given 56 54

Commitments received:

- counter-guarantees of commitments given 34 26

- other commitments received 79 74

Mortgages and pledges - -


Lagardère Unlimited – Guaranteed minimum

36

At June 30, 2013 entities forming part of Lagardère Unlimited had guaranteed minimum future payments amounting to €828m under long-term contracts for the sale of TV and marketing rights. These payments break down as follows by maturity:

Maturity(€m)

30/06/2013-30/06/2014

30/06/2014-30/06/2015

30/06/2015-30/06/2016

30/06/2016-30/06/2017

30/06/2017-30/06/2018

30/06/2018-30/06/2019

30/06/2019& beyond

Total

Guaranteed minimum payments under sports rights marketing contracts

125 151 127 114 69 67 175 828

At June 30, 2013 the amounts due under marketing contracts signed by these same entities with broadcasters and partners amounted to €1,223m, breaking down as follows by maturity:

Maturity(€m)

30/06/2013-30/06/2014

30/06/2014-30/06/2015

30/06/2015-30/06/2016

30/06/2016-30/06/2017

30/06/2017-30/06/2018

30/06/2018-30/06/2019

30/06/2019& beyond

Total

Sports rights marketing contracts signed with broadcasters and partners

281 308 269 167 66 55 77 1,223


37

Recurring Media EBIT before associates is defined as the difference between earnings before interest and tax and the following items of the profit and loss statement: • contribution of associates; • gains or losses on disposals of assets; • impairment losses on goodwill, property, plant and equipment and intangible assets; • restructuring costs; • items related to business combinations:

– expenses on acquisitions;– gains and losses resulting from acquisition price adjustments;– amortisation of acquisition-related intangible assets.

EBITDA is defined as: Earnings before interest and tax - Gains/(+losses) on disposals + Depreciation and amortisation + Impairment losses on goodwill, property, plant and equipment and intangible fixed assets - Positive contribution (+ Negative contribution) of associates + Dividends received from associates.

Like-for-like net sales were calculated by adjusting: • 2013 net sales to exclude companies consolidated for the first time during the year, and 2012 net sales

to include companies divested in 2013; • 2013 and 2012 nets sales based on 2012 exchange rates.

Free cash flow is defined as: Net cash generated by operating and investing activities, excluding acquisitions/disposals of financial assets and short-term investments.

For the records: definitions of Recurring Media EBIT, EBITDA, Like-for-like net sales and Free cash flow


Significant events

38

France

Net sales up by 5.5% owing mostly to JC Lattès fiction list (the Fifty Shades trilogyand Dan Brown’s Inferno) and distribution.

Education’s slowdown (due to pause in curriculum renewal) has minimal impact on H1 2013.


39

International market

US net sales up by 7.0% across the board, with digital activity still growing and improving profitability.

UK net sales down 1.9%, with Australia suffering from massive imports by online retailers.

Spain down 12.8% in the middle of restructuring efforts and growth in Latin America (+4.2%).

Partworks up by 12.1% with successful campaigns in United Kingdom, Russia and Italy.

Middle East and Russia developing in line with the business plan.


40

Digital activities (1/2)

E-books net sales in the United States still growing, but at a slower pace.

E-books growth curve in United Kingdom still steep and catching up with the United States.


41

0%

5%

10%

15%

20%

25%

30%

35%

40%

2009 2010 2011 2012 2013

United States

United Kingdom

21%

27%

34%

16%

23%

(As % of first half figures)

1%0%

5%3%

8% (as % of Trade net sales)

(as % of net sales)

E-books remain small in France (1.8% of Trade net sales).

Digital activities (2/2)

Digital back office best in class.

Prices of e-books have stabilised at a satisfactory level.

Best sellers account for overwhelming majority of e-books sales.

Self publishing not a nuisance, as successful self-published online authors soon seek the money, promotion and media coverage only established publishers can offer.


42

Second half outlook

Second half expected to be impacted by:

• significant shortfall in Education (July through October) due to the lack of curriculum change in all territories (France, Spain and United Kingdom);

• comparison with strong 2012 second half performance in the United States, United Kingdom and France (The Casual Vacancy launch, from September to December 2012).


43

Significant events

44

Magazines in France2013 First-Half Results / August 29, 2013

45

In a particularly depressed magazine market during the first six months of 2013, LagardèreActive maintains its leaderships on both circulation and advertising.

AdvertisingThe print advertising revenue declined by -8.8%1 in the first half of 2013 which is consistent with the magazine market. However, most of the Lagardère Active magazines such as Elle, Elle Décoration, Télé 7 Jours or Parents stay strong leaders on their competitive sets and gain market shares.

CirculationOverall, the circulation revenue is down by -7.2%1. The subscription revenue partially offset the newsstand decline. During the first months of the year, strikes at Presstalis disturbed the distribution network and thus weakened the newsstand sales.

Significant events• Elle received the 2013 Best magazine brand award rewarding its global brand strategy development on new

media (web, tablets and mobile phones) and also new fields (special events, services…).• Development of the international licence business with the launch of Elle in Australia. It will be the first

multimedia launch combining a website to be launched in August and the magazine in September. The advertising potential is promising since the booked order as of today is higher than expected.

• Public celebrated in June its 10th anniversary. The brand continues to grow on digital (+14% UVs2 vs. 2012) and became leader of the celebrity market on all digital media: websites, mobile phones and apps.

• In May, Paris Match enhanced its editorial offer revamping the magazine itself with a new layout and new sections and bringing to market a new website using the responsive design technology.

1Like-for-like basis excluding Be which changed its frequency from weekly to monthly in October 2012.2UV: unique visitors.

Radio

Europe 1• Europe 1 radio:

Europe 1 secured its audience share on its main commercial target : 6.1%1 (+2%) on listeners aged 25 to 59 during the radio season from September 2012 to June 2013. The listening time lengthened to reach two hours long (+2 minutes1).Over the April-June survey period, Europe 1’s listnership has reached its top level since 2006. This sharp increasecompared to the previous survey period (+0.5 point)2 confirms the strategy initiated by the radio station. As a result, the advertising revenue increased by 3% on the first half of 2013.

• Europe1.fr: The website stabilised its audience with a monthly average of 2.1 million unique visitors3 during H1 2013. Europe1.fr remains the most podcasted French radio. Europe1.fr strengthened also its position on video and mobile during the first half of 2013: around 50,000 people watched the live audio show on Europe1.fr (66 minutes per day) and the mobile audience raised up to 250,000 unique visitors.

RFM• With 2,430,000 listeners per day, RFM won 199,000 listeners on that survey. No.2 adult-music radio station on the

35-49 years old target with 4.8% audience share2, RFM remains the radio with the longest listening time (1h45min).

Virgin Radio• Virgin Radio achieved an additional +0.2 point audience share on its target (25-49 year olds) on a year on year

basis (audience share at 3.5%, average audience at 7.3% i.e. +12% and +155,000 listeners1).

International radios• H1 2013 saw mixed performances from one country to another: advertising growth in Romania and Germany

mitigated by decrease in Poland and Czech Republic. The slowdown noted in 2012 in the SMS activity in Poland continued throughout H1 2013.

• In March 2013, Lagardère Active Radio International (LARI) started broadcasting in Czech Republic the twelvefrequencies acquired from BBC Radiocom.

• On July 1st, LARI launched in 15 cities across Poland Radio ZET Gold, which replaces radio station Planeta FM.


461Source: Médiamétrie 126,000; September 2012-June 2013. / 2Source: Médiamétrie 126,000; April-June 2013. / 3Source: Médiamétrie, Nielsen NetRatings.

Television

Turnover and profitability are still positively oriented in 2013.

• Free TV: six new channels have been launched in December 2012 in France and the take-over of D8 and D17 by Groupe Canal+, have significantly increased the competition in Digital Terrestrial Television (DTT) French market.

– Gulli audience share have decreased during the first half of 2013 (-15%) leading to a decreasing advertising turnover.

– The new management has decided to focus on kids aiming to be again the first French kids channel. – Digital and merchandising business is still positively oriented in 2013 and remain key in the

development of the brand.

• Pay TV:– the two key distribution contracts in France have been renewed for 3 years therefore the turnover of the

channels continue to grow thanks to Internet distributor fees; – abroad, subscription fees continue to grow in Eastern Europe and especially in Russia; – Mezzo Live HD will be launched in Asia by the end of 2013, with first revenues expected in 2014.


47

TV Production and Distribution

43% revenue growth in H1 2013 vs. H1 2012 mainly due to the deliveries of the six remaining episodes of Borgia season 2 for Canal+ and the last four episodes of Jo for TF1. H1 2012 was a low comparable.

Lagardère Entertainment performances:

• sharp increase of turnover in the first half of 2013 is related to the different timing of deliveries vs. last year;• Lagardère Entertainment enjoyed the resounding success of short format serie Nos chers voisins which was

the only French scripted format on the TF1 “Top 100” audience in 2012 and continues to outperform in 2013;• the other series of Lagardère Entertainment continue to attract good viewing figures, particularly Joséphine,

ange gardien, Clem and Famille d’accueil;

• the programme C dans l’air, broadcast daily on France 5, continues to attract good viewing figures and has been renewed by a 3 years contract starting September 2013;

• launch of Borgia season 3 which will be delivered in 2014 to Canal+.


48

Digital

Lagardère Active is the leading media group in France with 20 million unique visitors1, and consolidates its digital position.

• LeGuide pursued its growth during the first half of 2013 (+8% like-for-like with sales vs. 2012) and consolidated its leader position in Europe.

• BilletRéduc pursued its strong growth during the first half of 2013 and launched a new online ticket service with Gulli in June.

• La Place Media pursued its developments with the launch of mobile ad exchange in May 2013.

• Doctissimo.fr, the leading French feminine site with 8 million unique visitors, pursued its brand development by launching its magazine.

• Boursier.com launched a new website in responsive web design, L'Argent & Vous, in June to increase its targeted audience.


491Source: Médiamétrie-NetRatings; all connection sites; May 2013.

Lagardère Active Enterprises

Development of the international licensing business with:

• launch of new categories: – kids for India with Arvind;– multi-country launch of a stationery product line with Clairefontaine.

• signed contract: handbags and luggage for Canada with Holiday Group.

• groundbreaking projects :– two new Elle Café (Tokyo/Roppongi and Hanoi): grand opening in July;– launch of new product lines in Europe: beauty appliances, tablet and Smartphone protections.

At the end of June 2013, revenues (mainly from Elle licensing) have increased by 5% vs. end of June 2012.


50

Significant events

51

Background

The rise (+2.3%)1 in passenger traffic worldwide has significantly dropped, after a gradual slowdown in the second half of 2012. Domestic and intra-European traffic were particularly affected.

Despite an accelerated decline in the print media markets, the effects of the economic crisis and unfavourable weather conditions, consolidated net sales at the end of June remained flat at -0.4%:• +6.6% for LS travel retail (+2% at constant rate and like-for-like basis);• -9.1% for LS distribution (-4.5% at constant rate and like-for-like basis).

In this difficult environment, project momentum remained strong and the first half of 2013 was marked by: • successful integration of the new businesses: Rome Duty Free, Airport Fashion, DFS Wellington,

Celeritas…• renewal of the French railway concession (SNCF) for 10 years following a very competitive process.• dynamic organic growth and continued efforts to modernise and diversify sales outlets:

– opening the new fashion concession in Xi’an (China), confectionery store at Hong Kong airport, the food court at Frankfurt station (10 stores);

– gain of the fashion concession at the main Spanish airports (Malaga, Madrid and Barcelona), numerous tenders in hospitals (Toulouse, Reims...) and Food Services concessions (Mulhouse, Avignon...);

– launch of the new Relay format at Paris-Orly airport, roll out of the Hubiz, So! Coffee and Trib’sconcepts.

• several acquisitions including Coffee Fellows in Germany (15 stores), Crossings Fine Food in the United States (import of European gourmet products), Sprinter (service to e-retailers) and LDS Distributor (distribution of convenience products) in Hungary.


521Source: ACI data at June 30, 2013 (Europe: +1.2%; North America: +0.6%; ASPAC: +5.1%).

Travel Retail in France Aelia

• 100% managed net sales up by +5.3% attributable to:– an increase of +8.2% at Paris airports despite a marginal traffic growth (+0,5%), the closure of

terminal 2B and heavy works at terminal 2F: strong development of the Fashion activities since the take-over from previous operator (+19.5%), positive impact of store renovations (Roissy A/C and S4 terminals refits) and dynamic commercial initiatives in core business (+5.7%);

– sales in the regions outside Paris up by +8.6%, driven by Nice, Lyon and Bordeaux airports, and Eurotunnel;

– in-flight retail has been affected by traffic decline and strikes in Spain and Italy (-5.1%); La Réunion(-15.8%) by strong traffic decrease and electronics division is impacted by the closure of few ex-Virgin Stores (-33.4%).

Relay• 100% managed sales are flat (-0.5%):

– unfavorable environment…:– decline of the domestic and intra-European traffic both in airport and rail networks; – reduction in spending and bad weather.

– …and strong decrease of the print products (-6.5%)…:– Presstalis strikes in Q1 and switch to digital.

– …compensated by successful commercial initiatives and the modernisation of the network:– strong growth of the food & beverage (+9.2%) and gifts and souvenirs (+11.3%) categories;– opening of Gare Saint-Lazare stores and roll out of the new convenience and food services concepts

(Hubiz or Trib’s).• Sustained development activities:

– gain of several tenders in food & beverage (Trib’s in Arras, Café Leffe and Trib’s in Tours, Eric Kayser in Avignon…);

– and hospital cafeterias.

• The network is stable vs. 2012 with 865 sales outlets.


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Travel Retail in Europe (1/2)

Italy (Rome airports)• Successful take-over started October 1st, 2012: 9 stores (8 in Fiumicino and 1 in Ciampino).• Full modernisation of all stores has started and has been completed early August. • The team and systems are in place.• In this context, and despite unfavorable traffic evolution on both platforms (-2.7%), sales per passenger

are showing promising growth.

United Kingdom• Growth in business of +3.9% mainly attributable to the opening of new concepts in late 2012 (+3.4 points).• Comparable sales are increasing by +0.5% thanks to commercial initiatives, especially in Luton, London

City and Glasgow.

Germany• The opening of the Berlin international airport (Willy Brandt), initially scheduled for June 2012, is now

pushed back to end of 2014.• Sales are flat vs. 2012:

– the constant network is suffering from the traffic decline in German airports and the change of passengers flows at Frankfurt airport since October 2012;

– it is compensated by the strong growth in Food Services with:– the opening (May 29th) of the Frankfurt train station concession (10 stores);– the acquisitions of the travel retail activities of the Coffee Fellows coffee chain on January 1st, 2013

(15 stores) and a Burger King store at Frankfurt station. • The network consists in 122 sales outlets at end of June, +35 vs. 2012.


54

Travel Retail in Europe (2/2)

Poland• Poland benefited from the UEFA Euro 2012™ in H1 2012; however, net sales increased by +4.1%

driven by the very good performances of the Duty Free and Food Services segments:– Duty Free activity: +15.6%, driven mainly by Warsaw airport where business benefits from a positive

transfer of traffic since the closing of Modlin regional airport (December 2012) and improved penetration since the closing of the terminal 1 (July 2012);

– Food Services activity: +12.1%, strong growth in travel locations; – Travel Essentials: +0.1%, negative comparison with H1 2012, deteriorating economic environment

and decrease of press & tobacco sales compensated by the continuing repositioning of the network towards convenience concepts (1 minute, Hubiz).

Czech Republic• Negative impacts of the traffic decrease at Prague airport (-2%), economic crisis and bad weather

(floods in June).• In this context, sales increase (+3.6%), driven by network development (+14 sales outlets), successful

modernisations and commercial initiatives:– Duty Free: +3.7% (traffic: -2%), impact of the store renovations and marketing actions;– Food Services: +22.3%, strong development of Costa Coffee and Paul franchises; roll out of

Lagardère Services owned brands;– Travel Essentials: -1.1%, decrease in print products (-9.2%) partly offset by the good performance of

the tobacco products (+3.8%). Network impacted by the floods in June.

Romania and Bulgaria• Romania: +11.5%, network development: 197 sales outlets (+9 sales outlets vs. June 30, 2012).• Bulgaria: +23%, with a network of 84 sales outlets (+20 sales outlets compared to June 30, 2012).


55

Travel Retail in North America

Retail activities in Canada and the United States are decreasing by -2.8% impacted by the store network reduction and heavy decline in print sales (-11% in comparable basis).

• Comparable sales (-2%): the decrease in print products (-10.9%) is mitigated by the acceleration of the change in product mix and concept evolution (food & beverages and souvenirs mainly).

• Non comparable (-1 point): – closure of LaGuardia and JFK airports in 2012;– not fully compensated by the opening of Edmonton (end of 2012) and Detroit (February 2013).

• Successful development activities will lead to numerous new openings in the coming months:– News & Convenience: Chicago (2014);– Specialty:

– Detroit, Dallas, Los Angeles and JFK T8 (H2 2013);– Dallas and Los Angeles (2014).

– Food Services: Houston, Denver and Los Angeles (H2 2013).


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Travel Retail in Asia-Pacific

Pacific• H1 results remain affected by a challenging environment:

– the Australian dollar remained strong affecting tourism related activities. It has dropped since May which should positively impact H2;

– print sales continue to drop significantly (books: -16.6%; press: -10.2%) due to price decrease, switch to digital and offshore online sales;

– implementation of new and more restrictive tobacco policy since September 2012 in Australia.

• Despite this difficult environment, net sales continued to grow by +10.3%: – acquisition of DFS Wellington in July 2012 (+15 duty free stores in New Zealand and in Australia

including an online activity);– concept and product mix diversification in the Travel Essential network in Australia (+12.5% in food &

beverages; +5.2% in gifts and souvenirs); – Purely sales decreased by -6.9% following the network rationalisation (+2.3% like-for-like);– good performance of the Travel Essentials activities in New Zealand:+9.5%.

• The network comprises 136 sales outlets (+6 compared to 2012).

Asia• Net sales increased by +25.4%, thanks to the traffic growth, the development of the network in

Singapore and Malaysia (mainly specialty & confectionery), and the consolidation of stores operated on the high-speed railway lines in China.

• Lagardère Services is present in Singapore, Malaysia, China, Hong Kong and Taiwan with 89 stores(-3 stores due to the closure of non-profitable stores in China ‒ subway and regional airports).

• Development of fashion activity in China is ongoing: first 4 stores opened at Xi’an airport in December 2012 and 13 new stores will open in Shenzhen before year-end.


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Distribution activities (1/2)

Belgium• Integrated Retail activities remained flat (+0.3%): press decline (-8.2%) was fully compensated by the

development of food & beverage and accessories.• Distribution activity declined by -6.9%, including -7.5% in press.

Spain• Business in Spain continues to decrease, with sales at -8.9% in a very difficult economic environment

(high unemployment rate, decrease of consumption…): – Retail activities fell by -6.5%, with a traffic at -5.9% and press sales at -10%;– Distribution activities declined by -9.5%, with print at -11%.

• Gain of the fashion and luxury tenders for Malaga, Madrid and Barcelona airports.

Switzerland• Retail sales dropped by -1.9%: press decline (-11%) is almost fully compensated by the development of

the fashion business (acquisition of Airport Fashion in 2012) and the good performances of Payot (+2%).• Distribution activity declined by -6.6%, mainly driven by a -10,2% drop in press sales.


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Distribution activities (2/2)

Hungary• Integrated Retail activity grew by +9% (excl. the impact of the change in mobile prepaid sales method

of accounting). The growth is driven by the tobacco sales.• Distribution activity increased by +5.1% (excl. the impact of the mobile prepaid sales) following the

acquisition of LDS Distributor in January (FMCG1 distributor) and Sprinter (service to e-retailers) mid May.

North America• The Press Distribution activity was strongly impacted both in the United States (Curtis: -10.2%) and

Canada (LS distribution North America: -10%).• Press decline was partly compensated thanks to the success of the diversification strategy, with

Euro-Excellence growing by +33% and the acquisition of Crossings company (importation of European food products in the United States).


591Fast-moving consumer goods.

Significant events

60

Media

Sportfive Africa

• Successfully managed the marketing and media rights of the 2013 Orange Africa Cup of Nations played in South Africa in January and February 2013.

Sportfive International

• Extended by 4 years – until 2017 – its agreement with the French Tennis Federation to distribute Roland-Garros media rights in a selection of Asian territories.

• Renewed for 3 years – until 2016 – its agreement with the International Tennis Federation for Davis Cup and Fed Cup rights in a selection of Asian territories.

• Signed a new agreement with the International Basketball Federation to distribute the media rights of its competitions in a selection of Asian territories until 2015.


61

Marketing

Sportfive France

• Signed an exclusive sales agreement with the French Cycling Federation to support them in the marketing of the rights of a new multidisciplinary professional cycling team.

• Brokered the 4-year shirt sponsor deal between Joker – the fruit juice brand – and the French Basketball Federation.– Joker is to become the official partner of the French Basketball Federation, for a 4-year

period up to the Rio 2016 Olympic Games.• Renewed for 3 years its agreement to manage Roland-Garros hospitality sales.

Sportfive Germany

• Extended for 5 additional years – until end of season 2019-2020 – its comprehensive marketing contract with Hamburg SV football club.

Sportfive Netherlands

• Extended for 3 additional years – until end of season 2019-2020 – its comprehensive marketing contract with FC Utrecht football club.


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Events

World Sport Group

• Represented the Singapore Sports Council in the winning bid to host the WTA Championships that will be hosted in Singapore from 2014 to 2018 and organised by World Sport Group.

Upsolut

• Organised the first edition of the Kitzbühel Velothon.

• Organised the first edition of the Auckland Triathlon.

Sportfive France

• Signed a 5-year contract with the French National Handball League to be the promoter of the new Hand Star Game event.

IEC in Sports

• Organised the first edition of the Aarefjällsopet, last stage of the long distance ski championship Swix Ski Classics.


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Stadiums and arenas

Lagardère Unlimited Stadium Solutions

• Signed two new consulting contracts in Russia for two 2018 FIFA World Cup stadiums.• Signed a first contract in Qatar, for an arena consulting agreement for Qatar National

Olympic Committee on the Handball World Cup 2015.


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2013 First-Half Results

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