2013 Reference Document Chapter 1 - Persons Responsible for the Reference Document and Statutory Auditors
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REFERENCE DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT 2013 PROFILE Lagardère, a world-class diversifi ed media group led by Arnaud Lagardère, operates in around 30 countries and is structured around four distinct, complementary divisions: • Lagardère Publishing: Book and e-Publishing; • Lagardère Services: Travel Retail and Distribution; • Lagardère Active: Press, Audiovisual (Radio, Television, Audiovisual Production), Digital and Advertising Sales Brokerage; • Lagardère Unlimited: Sports and Entertainment. ... ... ... ... REFERENCE DOCUMENT including the Annual Financial Report 2013 Lagardère SCA French partnership limited by shares (société en commandite par actions) with share capital of €799,913,044.60 divided into 131,133,286 shares with a par value of €6.10. Registered offi ce: 4 rue de Presbourg - 75116 Paris - France Telephone: + 33 (0)1 40 69 16 00 Lagardère is registered with the Paris Trade and Companies Registry (Registre du commerce et des sociétés) under number 320 366 446 Corporate website: www.lagardere.com The original version of this Reference Document (Document de référence) in French was fi led with the French financial markets authority (Autorité des Marchés Financiers – AMF) on 4 April 2014 in accordance with article 212-13 of the AMF’s General Regulations. It may be used in connection with a fi nancial transaction if supplemented by an information notice approved by the AMF. This document has been prepared by the Company under the responsibility of the persons who signed the French original Document de référence. 2013 / REFERENCE DOCUMENT CONTENTS 1 PERSONS RESPONSIBLE FOR 6.4 Comments on the Lagardère SCA parent THE REFERENCE DOCUMENT Company fi nancial statements AND STATUTORY AUDITORS AFR 5 at 31 December 2013 AFR 178 1.1 Persons responsible 6.5 Parent Company balance sheet for the information contained at 31 December 2013 AFR 180 in the Reference Document 6 6.6 Statutory Auditors’ report 1.2 Declaration by the persons responsible on the Company’s fi nancial statements AFR 194 for the Reference Document 6 6.7 Statutory Auditors’ report on the consolidated 1.3 Details of the Statutory Auditors 7 fi nancial statements AFR 195 6.8 Special Statutory Auditors’ report on 2 CONSOLIDATED KEY FIGURES FOR 2013 9 regulated agreements and commitments 196 2.1 Consolidated key fi gures 10 2.2 Per share data 10 7 ORGANISATION OF THE COMPANY AND THE GROUP – CORPORATE GOVERNANCE AFR 197 3 RISK FACTORS AFR 11 7.1 General presentation of French partnerships 3.1 Risks associated limited by shares and of Lagardère SCA 198 with the economic environment 12 7.2 General Partners, Managing Partners 3.2 Risks associated with the business activity 13 and members of the Supervisory Board 199 3.3 Legal risks 14 7.3 Remuneration and benefi ts 211 3.4 Financial or market risks 16 7.4 Organisation, operation and control 3.5 Operational risks 16 of the Company and the Group 231 7.5 Transactions with related parties 4 GENERAL INFORMATION (Managing Partners and members ABOUT LAGARDÈRE SCA 19 of the Supervisory Board) 246 4.1 General information about the issuer 20 8 OTHER INFORMATION ON THE COMPANY 247 4.2 History 21 8.1 Share capital AFR 248 4.3 Organisation chart – principal subsidiaries – relations between the parent Company 8.2 Principal provisions of the Company’s and subsidiaries 22 Articles of Association AFR 254 4.4 Major investments 23 8.3 Major contracts AFR 260 8.4 Real estate property 261 5 INFORMATION ON THE BUSINESS ACTIVITIES OF THE COMPANY AND THE GROUP AFR 25 9 RECENT DEVELOPMENTS AND OUTLOOK AFR 263 5.1 Business activities and strategy 26 9.1 Recent developments 5.2 The Group’s principal activities and main (since 1 January 2014) 264 markets – operations during 2013: Lagardère Media 27 9.2 Outlook 264 5.3 Corporate social responsibility and 9.3 Earnings forecast 264 corporate citizenship – Ethics 48 10 DOCUMENTS ON DISPLAY 265 6 NET ASSETS, FINANCIAL POSITION AND RESULTS 91 11 CROSS-REFERENCE TABLE FOR THE REFERENCE DOCUMENT 267 6.1 Per share data, dividend policy and share performance AFR 92 6.2 Comments on the Lagardère SCA consolidated fi nancial statements at 31 December 2013 AFR 94 Items appearing in the Annual Financial 6.3 Consolidated income statement Report are cross-referenced with the for the year ended 31 December 2013 AFR 99 following symbol AFR 2 The Annual Financial Report prepared in accordance with article L.451-1-2 of the French Financial and Monetary Code (Code monétaire et fi nancier) and article 222-3 of the General Regulations of the French fi nancial markets authority (Autorité des Marchés Financiers – AMF) comprises the information, documents and reports listed below, which are presented in the chapters, sections and pages indicated of the accompanying Reference Document. Statement by the persons responsible for the information (Statement by the persons responsible for the Annual Financial Report and Reference Document) Chapter 1 5 Parent company fi nancial statements for 2013 Chapter 6.5 180 Consolidated fi nancial statements for 2013 Chapter 6.3 99 Management report: ▼ Business activities of the Company and the Group Chapter 5 25 Chapter 8.3 260 263 Chapter 9 ▼ Results and fi nancial position Chapter 6.1 92 Chapter 6.2 94 178 Chapter 6.4 ▼ Main risks Chapter 3 11 ▼ Organisation of the Company and the Group – corporate governance Chapter 7 197 ▼ Information on the share capital, major shareholders, share buyback programmes and principal provisions of the Articles of Association Chapter 8.1 248 Chapter 8.2 254 Statutory Auditors’ report on the Parent Company fi nancial statements Chapter 6.6 194 Statutory Auditors’ report on the consolidated fi nancial statements Chapter 6.7 195 3 Chapter 1 - Persons responsible for the Reference Document and Statutory Auditors This page is left intentionally blank. 4 2013 Reference Document Chapter 1 - Persons responsible for the Reference Document and Statutory Auditors 2 PERSONS RESPONSIBLE FOR THE REFERENCE 1 DOCUMENT AND STATUTORY AUDITORS 1.1 PERSONS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THE REFERENCE DOCUMENT AFR 6 Managing Partners 6 1.2 DECLARATION BY THE PERSONS RESPONSIBLE FOR THE REFERENCE DOCUMENT AFR 6 Declaration by the Managing Partners 6 Items appearing in the Annual Financial Report are cross-referenced with the 1.3 DETAILS OF THE STATUTORY following symbol AFR AUDITORS AFR 7 2013 Reference Document 5 Chapter 1 - Persons responsible for the Reference Document and Statutory Auditors 1.1 PERSONS RESPONSIBLE FOR THE INFORMATION AFR CONTAINED IN THE REFERENCE DOCUMENT MANAGING PARTNERS − Arnaud Lagardère, Chairman and Chief Executive Offi cer; Arnaud Lagardère, − Pierre Leroy, Deputy Chairman and Chief Operating Offi cer; Arjil Commanditée-Arco, represented by: − Dominique D’Hinnin, Chief Operating Offi cer; − Thierry Funck-Brentano, Chief Operating Offi cer. 1.2 DECLARATION BY THE PERSONS RESPONSIBLE AFR FOR THE REFERENCE DOCUMENT DECLARATION BY THE MANAGING PARTNERS The Statutory Auditors’ report on the consolidated fi nancial statements for the year ended 31 December 2011 contains two observations: “We hereby declare, having taken all reasonable care to ensure that such is the case, that the information set out in this Reference one concerning note 10 to the consolidated fi nancial statements Document is, to the best of our knowledge, in accordance with the with respect to impairment losses on goodwill and other intangible facts and contains no omission likely to affect its import. assets, relating in particular to Lagardère Unlimited; We further declare that to the best of our knowledge, the fi nancial the other concerning note 19 to the consolidated fi nancial statements have been prepared in compliance with the applicable statements, which presents the accounting treatment applied at accounting standards and give a true and fair view of the assets, 31 December 2011 for the investment in Canal+ France. liabilities, fi nancial position and results of the Company and all the The Statutory Auditors’ report on the consolidated fi nancial statements entities included in the consolidation, and that the accompanying for the year ended 31 December 2012 contained two observations: management report (Chapter 3, pages 11 to 17; Chapter 4, one concerning note 10 to the consolidated fi nancial statements pages 19 to 24; Chapter 5, pages 25 to 89; Chapter 6, section 6.1, with respect to impairment losses on goodwill and other intangible pages 92 to 93; Chapter 6, section 6.2, pages 94 to 98; Chapter 7, assets, relating in particular to Lagardère Limited and Lagardère pages 197 to 246; Chapter 8, pages 247 to 261; Chapter 9, Active; pages 263 to 264) provides a fair view of the business, results of the other concerning note 19 to the consolidated fi nancial operations and fi nancial position of the Company and all the entities statements, which presents the accounting treatment applied at included in the consolidation, together with a description of the main 31 December 2012 for the investment in Canal+ France. risks and uncertainties to which they are exposed. The Statutory Auditors’ report on the consolidated fi nancial We have obtained a letter from the Statutory Auditors issued upon statements for the year ended 31 December 2013 contains one completion of their engagement, confi rming that they have read observation concerning note 10 to the consolidated fi nancial the Reference Document in its entirety and verifi ed the information statements, which presents the assumptions used for impairment contained therein relating to the Group’s fi nancial position and