INVESTOR DAY

PARIS

FEBRUARY 2, 2004 OUTLINE OF THE PRESENTATION

Ô 1 . Introduction Brigitte Gauthier-Darcet

Ô 2 . Audiovisual Brigitte Gauthier-Darcet n 2.1 Production / Distribution n 2.2 Theme Channels

Ô 3 . Radio Brigitte Gauthier-Darcet

Ô 4. Complementarity of Music Media Christophe Sabot

Ô 5 . New Media Fabrice Sergent

Ô 6. Multimedia advertising brokerage Constance Benqué

2 Introduction 1 . INTRODUCTION : Presentation of Lagardere Active

Ô A media group focusing on 5 strategic and complementary areas n Producer and distributor of TV programs n Publisher of theme channels n Radio operator in France and 7 other countries n Publisher of multimedia services n Multimedia advertising rep

Ô With a clear management approach n Combine growth with tight management n Attract talents and promote creation n Secure short-term profitability without undermining the long term

Prod. Theme Distrib. Channels New 17,3% 12,7% Medias Net Sales 18,8% 2002

Multimedia Advertising Brokerage 4 19,6% Radio 31,6% Production / Distribution 2 . 1 . Production / Distribution: Presentation of the Businesses

Ô 10 stock production companies : n GMT Productions (Napoléon, Julie Lescaut, Boulevard du Palais,…) n DEMD Productions (Nestor Burma, Joséphine Ange Gardien,…, Le Bleu de l’Océan, 2003 summer serial on TF1) n … 168 hours produced in 2002 (revenue 57 M€) drama, documentaries, animation all of them re-usable rights enriching our library

Ô 7 one-off production companies : n JLR Productions (20h10 Pétantes with Stéphane Bern for Canal +) n MAXIMAL Productions (C dans l’air for France 5) n B3COM (created by Benjamin Castaldi) 680 hours produced in 2002 (revenue 25 M€) ligth drama, magazines, gameshows, celebrity shows, real TV only the formats may be resold after broadcast

6 2 . 1 . Production / Distribution: Business Model – Key Elements

Ô These companies address the entire market : n The 6 French terrestrial TV channels (TF1, , France 3, France 5, M6, Canal +) n And some theme channels (Equidia, Match TV,...)

Ô Our library : 13 000 hours mainly fictions, documentaries, animation

Ô Although the instant audience measurement n Has no direct impact on the financing of the related production, n It is a key factor for the broadcasting channel’s advertising revenue n It helps building up broadcaster loyalty and is a key element of long term business growth

Ô One of our skills is the know-how over financing big international co-productions, involving the main developed countries (in Europe, Canada and the United States), and using all existing aids such as tax shelters and tax credits.

7 2 . 1 . Production / Distribution: Competitive Position

Ô No. 1 producer of fiction, 23% market share in France No. 2 approximately twice smaller

Ô No. 3 producer of one-off programs to be on air in 2003 (No. 5 in 2002)

Ô 30 of the most successful 100 audiences in 2003 (14 in 2002) 29 of the 60 most successful audiences for fiction

Ô Awards from French and international juries n 7 nominations for Emmy Awards in September 2003, n 5 awards at the “16ème Nuit des 7 d’Or” ceremony in November 2003.

Lagardere Active has become a leader in TV production

8 2 . 1 . Production / Distribution: SWOT Analysis

Ô Strengths Depth and variety of top talents High quality programs Good business profitability, due to tight management

Ô Weaknesses Still insufficient presence in animations and gameshows

Ô Opportunities Changes in regulations (access to TV advertising for the previously prohibited sectors,…)

Ô Threats “Producer” risk

9 2 . 1 . Production / Distribution: Growth Prospects

Ô Consolidate the Group’s pre-eminence in fiction

Ô Strengthen production of one-off programs n By a policy aimed at finding young talents n Through the search for innovative formats n By acquiring companies producing one-off programs in the gameshow field

Ô Become a leading distributor in Europe through the acquisition of existing catalogs

Be the leading program supplier for French terrestrial TV for both fiction and one-off programs.

10 Theme Channels 2 . 2 . Theme Channels: Presentation of the Business

Ô Properties: 9 channels broadcast mainly in Europe in 4 editorial categories n Music: MCM, MCM TOP, MCM POP, MCM 100% Belge, MEZZO n Children: , TiJi n Daily life: La Chaîne Météo n People : Match TV n 27.4% share in multiThématiques (publisher of Planète, Ciné-cinémas, Jimmy, etc.)

Ô Distributors: cable and satellite operators (CanalSatellite, TPS, Noos, etc.)

Ô Key figures: over 5 M cable and satellite subscribers nearly 28 M subscribers to our channels, incl. 10 M abroad

Ô Net revenue : 80% fees (from distribution platforms) 20% advertising

12 2 . 2 . Theme Channels: Competitive Position

Ô Children area

Canal J n No. 2 theme channel, all theme channels viewers combined n No. 1 children channel for 4-10 and 4-14 age group (7,9 %), all theme channels viewers combined

TiJi n No. 2 children channel for 4-10 age group (7,3 %), all theme channels viewers combined

Canal J + TiJi combined enjoy a 42,9 % market share (4-14 age group) on children channels

Ô Music area

MCM n No. 1 theme channel for 15-24 age group

13 n No. 1 music channel for 4 + age group 2 . 2 . Theme Channels: SWOT Analysis

Ô Strengths Strong presence on key sectors for advertisers (children, music) Complementarity of TV music channels and radio stations Increasing number of subscribers to CanalSatellite

Ô Weaknesses Dependence on the distributor Not backed by a terrestrial TV channel

Ô Opportunities Opportunities for acquisition (trend towards market concentration) New distribution technologies : digital terrestrial TV, ADSL, etc.

Ô Threats Sharpening competition from other theme channels (Piwi, , etc.) and from terrestrial channels (development of Star Academy type of formats, etc.)

14 2 . 2 . Theme Channels: Growth Prospects

Ô Growth potential : n Access to TV advertising for previously prohibited sectors reserved until 2007 for cable and satellite channels n Convergence between advertising market share (5%) / audience share (11%) n Constant growth of audience share : from 7% in 2000 to 11% in 2003

Ô Spin off new channels from successful ones (Canal Jà TiJi)

Ô Opportunities to acquire one or more channels in order to : n Enhance the product range in selected areas such as l “children”, “music” and “daily life” n Promote the international growth of MCM

Become an unavoidable package provider for all pay channel distributors

15 Audiovisual Summary

Over a 8 year period, Lagardere Active has collected : Ô Strategic assets: n Talents: producers, anchors, channel executives n Products, brands, catalogs n Audiences Ô A range of know-hows: n Creator of programming n Distributor n Producer for theme channels n Broadcaster of themes channels n Advertising airtime rep

Constituting an independent entity, ready to contribute to the success of any new investment in the Audiovisual field 16 Radio 3 . Radio: Presentation of the Business

Ô 3 national radio stations in France: n A general-interest News & Talk format

n A music “generation motor” for 15-34 age group

n A contemporary music station for 25-49 age group In a very competitive French radio environment (15 private national broadcasters)

Ô 16 stations abroad, in 7 countries (Eastern Europe, Germany and South Africa): 25 M daily listeners

18 3 . Radio: Business Model – Key Elements

Ô 85% of net revenue from advertising à a very cyclical business Most costs are fixed (schedule, broadcast, promotion) n More than half of the costs are constituted by payroll charges n Program generally set for the broadcast season (from september to june) n Cost of dual broadcasting (LW/FM) for

Ô Unbalanced distribution of frequencies throughout France : n Europe 1 186 frequencies 51.6 M coverage on LW+FM n Europe 2 199 frequencies 39.5 M coverage on FM n RFM 162 frequencies 34.4 M coverage on FM Representing total potential coverage of 125.5 M < threshold of 150 M Note: NRJ 257 frequencies, France Inter 621 frequencies

19 3 . Radio: Competitive Position

Ô Very competitive environment in a context frozen by regulations n 3 main private players: Lagardere Active, NRJ, RTL n 3 small ones : Skyrock, RMC Info, Radio Classique, competing for growth n A 7th player, on the audience market only: the state-owned stations

Ô Market share (source: Médiamétrie – Nov. / Dec. 2003): no. listeners/d. n Cumulative audience 9.9% for Europe 1 4,909,000 6.7% for Europe 2 3,314,000 4.4% for RFM 2,193,000 n A total of more than 10 million listeners every day

Ô Internationally: No. 1 radio operator in Poland, Czech Republic, Romania, No. 2 in Russia, No. 4 in Hungary Positive operating income for the last 3 years

20 3 . Radio: SWOT Analysis

Ô Strengths Programming expertise Complementary formats reaching every age group Abroad: strong Group positions in a balanced portfolio of countries

Ô Weaknesses Insufficient coverage of the country by our stations

Ô Opportunities Changes in regulation (categories, threshold, …) Satellite radio broadcasting (XM in the United States) Abroad: opportunity for consolidation (values at cyclical low point)

Ô Threats Open access from 2007 to sectors (especially retail) where TV advertising is still prohibited

21 3 . Radio: Growth Prospects

Ô Continue to improve coverage, by obtaining new frequencies

Ô Internationally, consolidate our positions in countries where we are already present, while studying the possibility of investing in new countries

Ô Develop the complementarity of media between music radio and n Music TV channels n Downloading n Spin-offs n Interactivity n Concerts

22 Complementarity of Media 4 . Complementarity of Media

A Unique Radio Landscape

Ô The French radio landscape today: n A peculiar French situation that is not found in any other country n 15 different national music and/or news stations

This situation is unique in the world today.

24 4 . Complementarity of Media

Segmentation of Content

Ô Radio is a business sector that is not exempt from the basic rules of marketing:

Create desire, be unique, and make it known.

Ô Our every day policy: n Respect for the genetic codes of the brand n Respect for our promise concerning our products n Regularity in the production of our programs n Evolution, never revolution, in our offer of programs.

This is also our competitors’ policy.

25 4 . Complementarity of Media

Segmentation of Content (continued)

Ô To survive and grow in the face of the combined offering of music and entertainment (mornings and evening talk shows) presented by our competitors: n Be segmented n Be different n Be capable of inducing a feeling of “ownership” “making it theirs”

Ô Europe 2 and RFM, two music stations n Positioned in the cycle of the discovery and consumption of music n Trend-setters on their own market segment

Ô Exploit our brands more intensely n So that they become labels n And also take on a marketing function.

26 4 . Complementarity of Media

Music Radio and Interactivity

Ô An intense listener/radio station relationship through the “participatory links” that arise from conventional resources, such as: n Fixed wire and mobile phones, n Text messaging, n Email, n The communities that we have developed on our Web sites.

Ô Make progress in the commercial use of databases identifying our consumers (useful for downloading as well as for music searches), while emphasizing: n The marketing of our games lines, n The use of text messaging for gameshows and talk show broadcasts.

27 4 . Complementarity of Media

Music Radio and Spin-offs

Ô Strong identifiable brands that are already producing lines of derivative products:

CDs and DVDs Ô with Europe 2 “un maxx’ de bruit” the “un maxx’ de frisson” collection Ô with RFM “le meilleur du cinéma” or “night fever”

that constitute complementary sources of sales.

28 4 . Complementarity of Media

Music Radio and Downloading

Ô The commercial market for music downloads has no choice but to organize itself.

Ô We will be a media player in this process through the development of Virgin Méga.

Music Radio and Concerts

Ô The market for organizing concerts is changing particularly quickly.

Ô In this situation, our radio stations could rapidly develop a “concert branch”: 1st example: Europe 2 Live, The first Radio & TV Show, simulcast on Europe 2 and MCM.

29 4 .Complementarity of Media

Music Radio and Music TV Channels

Downloading, Concerts, Derivative products, Interactivity,

Are applied on the MCM channels in the same way as in the FM business,

And by promoting synergies between the two fields.

30 New Media 5. New Media : Presentation of the Business

Géography : Scope of presentation :

LAGARDERE ACTIVE BROADBAND Nouveaux médias

rev.2002: Approx. m109 E Mobile

Main services and brands :

Chat/Dating Lifestyle Pictures Music Internet

Minority shareholder :

Content Syndication

32 5 . New Media : Focus on mobile (1)

Ô Mobile device accelerate paying content services penetration !

Animated MP3 Colored Real tones pictures downloads Voice mail pictures logos greetings Java Jeux Java 2.0 Single ton Polyphonic Tele- Games Java ringtones ringtones greetings applets Bingo SMS video clip Greeting Premium cards SMS MMS Karaoke Live dating

Fin 2002 2003 2004

33 5 . New Media : Mobile Data Market Europe vs USA

EUROPE USA

Western European Mobile Western European Mobile ARPU US Mobile Subscribers US Mobile ARPU Subscribers €/Month MM $/Month MM 400 40 183 34 35 200 174 60 320 326 332 32 33 164 54 54 53 53 52 350 301 312 31 31 153 52 285 141 42 1 1 2 300 30 5 6 7 9 150 128 50 2 3 87 85 85 3 4 61 5 108 250 131 81 200 191 20 100 106 40 53 53 150 28 27 27 128 140 52 51 49 233 241 247 27 27 26 128 47 100 203 10 50 113 30 170 83 50 94 47 0 0 0 0 13 20 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Internet Enabled Not Internet Enabled Voice Data 2.5/3G Phones No 2.5/3G Voice Data

Source Morgan Stanley Equity Research Source Morgan Stanley Equity Research Source Morgan Stanley Equity Research Source Morgan Stanley Equity Research

Western European Mobile Data Western European Market for US Mobile Data Market(1) US Market for Ringtones (1) (2) Market Ringtones/Logos $ Bn $ MM € Bn € Bn 1.8 40 2.0 8 500 32 6.8 403 35 7 400 30 1.5 23% 6 28% 12 2.8 25 1.0 CAGR 5 300 20 15 CAGR 3 1.0 4 66% 1.5 200 15 12 3 CAGR 187% 1.5 10 18 0.5 2 CAGR 5 12 0.6 2.5 100 1 0.4 17 0 0.6 0.0 0 0 2002 2005 2002 2005 2002 2005 2002 2005 P2P Browsing Premium P2P Browsing Premium

Source Morgan Stanley Equity Research Source Morgan Stanley Equity Research Source IDC, May 2003 Notes Source Morgan Stanley Equity Research • Numbers include airtime revenue for operators • Projections for 2005 in line with recent publications from Jupiter Research and W2F Note • Numbers include airtime revenue for operators

34 5 . Business Models

1) Technical expertise 2) Marketing expertise : - mobile operators distribution - advertising on print, TV, radio COMMUNITIES CONTENT COMMUNITIES CONTENT àSUBSCRIBERS àPAY PER VIEW

Wap STATISTICS BILLING

FRONT OFFICES

WAP Imode Java BREW Magazines MOBILE OPERATORS CONNECTIVITY

35 5. New Media : Competitive Position

Match.com Itouch International

Jamba Prosodie

Publishing Hosting

123 MM Computel AGL ADT Broadsystem Newtech InfoSpace ATS Zingy Local Jet MM 36 5 . New Media : SWOT Analysis

Ô Strengths

Ô Internal mobile expertise Ô Operating practice on the audiotex markets since 1994 Ô Weaknesses Ô Operating presence in 4 key countries Ô No mobile carrier’s ownership Ô Track record in mass market advertising since Club-Internet Ô No large TV station ownership Ô Direct access to privileged data on music industry (Virgin, Ô No music / movie majors’ ownership within the Group MCM, Europe2) and image/pictures businesses (Gamma, ) Ô Brand ownership and promotion capacity

Ô Opportunities Ô Threats

Ô New growing and profitable markets Ô Increase of space/ copyrights costs Ô Good match with other Group’s assets : Virgin, magazines… Ô Fast sector consolidation Ô Global markets, centralized technology, R&D and hosting Ô Need of fast critical mass reach Ô New technologies fosters operators’ growth as well : UMTS…

37 5 . New Media : Growth Prospects (2) / Conclusion

Ô Existing brands, products, expertise and technologies with local presence in 4 countries.

Ô Fast growing market overall, with l Late US growth l Opportunity to consolidate existing businesses in Europe

Ô … Strong opportunity to strengthen and extend our leading positions as key content providers to mobile users and mobile operators.

38 Lagardere Active Advertising Sales Company 6. Lagardere Active Publicité The French advertising market Ô 8.6 Billion Euros invested in the French media market in 2003 (+) Internet Cinema Outdoor 0,7% 0,8% Advertising 11,3%

National TV 29,0% (+)

Other press 17,1%

Cable TV 1,5% (+)

Radio 7,4% (+) National Daily Press 15,3% Magazines 16,9% 40 Source : Estimate LAP january 2004 6. Lagardere Active Publicité’s markets

The audiovisual sales company of the Lagardere Group is positionned on both an « historical » market and two « emerging » markets.

Ô1 « historical » advertising market : n Radio with a national and local commercialisation

Ô 2 « emerging » advertising markets with high growth potential: n television thematical channels n internet sites

Since 1999, Lagardere Active Publicité has experienced a steady rise of its market share.

41 6. LAP’s position on these different markets

Ô Radio On a highly concentrated market (3 major players : LAP, IP, NRJ) Lagardere Active Publicité owns very strong brands and is present on every level.

n A historical leading role (2nd commercial radio, commercial coverage share) with an innovative format : News & Talk.

n A musical network composed of and reinforced by the commercialisation of , leading offer ahead of NRJ.

n A presence on every market with strong positions : l on the national market with a leading position in terms of audience (34% of commercial coverage share), l on local markets, a challenger position

Between 1998 and 2003, on the national market : Turnover +54% while the market is up 30%

42 6. LAP’s position on these different markets

Ô Televison : n Large commercial portfolio (26 cable TV and 5 local or regional TV) composed of television channels edited by the group and channels owned by other groups (primarly AB group) which makes LAP the leading sales rep with 30% coverage share.

n Leading channels targetting the most interesting people : children with Canal J and TiJi, the 15-34 with the MCM+ offer, the Housewives-50 with RTL 9. Between 2001 and 2003 : Turnover +32% for a market up 6% (estimate)

Ô Web sites : n A specific positionning : only sales rep which commercialises a portal (Club-Internet) and strong internet brands (Europe1.fr, Europe2.fr, le Routard.com,etc.) n A systematic approach of prolonging our TV and Radio actions on our websites (cross-media)

Between 2001 and 2003 : Turnover +20% for a market down 10% (estimate)

43 6. Lagardere Active Publicité Market conditions

Ô Clients’ media strategies are becoming more and more complex (search of opportunities, simultaneous work on different targets, etc…)

Ô Investments based on more and more quantitative criteria ; the effective audience ; with a more and more accurate expertise of the Media agencies (buying agency).

Ô Clients expect increased expertise in terms of service : refined target groups with an efficiency that has to be proven.

44 6. Lagardere Active Publicité’s strengths

Ô Owned by a major media company

Ô Powerful media brands with very strong added value which can be sold as a global media : cross-media

Ô A dynamic team with very ambitious objectives :

n more turnover and market share

n A guarantee of efficiency and perfect services

A performing back office allowing optimisation of revenues & profits

45 Annexes

46 6. Lagardere Active Publicité The French advertising market

Ô In 2002, companies have invested 29,3 Billion euros for their communication in France which represents a small increase (+0.6%) after the strong increases until 2000 (up to +8%) and the steadiness of 2001.

Ô 2% of the national GDP is devoted each year to above-the-line and below-the-line media (direct marketing, promotion,etc).

Ô The French advertising market makes up for 4% of the international advertising market and 20% of the european advertising market.

Ô The French media have a great growth opportunity since France ranks in the european average with 489€ invested by inhabitants.

47 6. Lagardere Active Publicité Advertising income of the major media from 1998 to 2003

Millions of euros

Mkt share Var 2003 vs Var 2003 vs 1998 1999 2000 2001 2002 2003 2003 1998 2001

press 3 499 3 861 4 150 3 987 3 866 3 789 44% 8% -5% télévision 2 473 2 684 3 046 2 867 2 921 3 038 35% 23% 6% outdoor 1 026 1 089 1 174 1 129 1 085 1 031 12% 0% -9% radio 575 645 716 654 713 749 9% 30% 14% cinema 52 69 82 72 74 67 1% 28% -7% total 7 626 8 348 9 086 8 709 8 659 8 673 100% 14% 0%

48 Source : Irep 1998-2002 – estimate LAP for 2003 6. Lagardere Active Publicité Sectorial breakdown of the brutto radio turnover

Other 8% Tourism Distribution 4% 24% Food 6%

Transport 8%

Media Telecom 8% 16%

Publishing 8% Services Culture and 10% leisure 8%

49 Source : Secodip janvier-december 2003 6. Lagardere Active Publicité Ranking of commercial stations 12 ,1 8 ,1 6 ,9 5 ,4 5 ,2 4 ,1 3 ,8 3 ,5 3 ,4 2 ,6 2 ,5 1 ,8 1 ,1 0 ,8

RTL NRJ RFM RTL2 RMC MFM

EUROPE 1 SKYROCK EUROPE 2 NOSTALGIE CHERIE FM R. Classique R & Chansons

50 Source : Médiamétrie 75 000+ November-december 2003 – Base 13 years + (commercial coverage share)