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Annual report May 2002

Activity report 2001 Télévision Française 1

A public limited company (“Société Anonyme”) with a share capital of €42,399,216 RCS Nanterre B 326 300 159

TF1 1, quai du Point du Jour 92656 Boulogne Cedex / Tel: (33) 1 41 41 12 34 e-mail: comfi@.fr Internet: http://www.tf1.fr RA - ANGLAIS (1) 27/05/02 8:25 Page 1

Table of contents Activity report 1

Chairman’s statement 2

2001 highlights 4

Group activity 6

Board of directors, auditors 22 Directors’ report 24 Five year financial record 40 RA - ANGLAIS (1) 27/05/02 8:25 Page 2

Chairman’s statement 2 Activity report

Dear Shareholders,

2001 has been a transition year for the TF1 During this period, TF1 Group reinforced its From now on, our website builds on a three- Group. In spite of the slow down of the asset portfolio through: fold business plan based on the sale of content, French economy, the decrease of household paying access and advertising. consumption, the bursting of the “Internet bubble”, as well as a disturbed international Broadcasting Moreover, at the end of December 2001, TF1 context, TF1 Group strengthened its increased its stake in Télévision Par Satellite positions: At the European level, TF1 completed the (TPS) from 25% to 50% through the acquisition and restructuring of , a acquisition of the shares of France Télévision • the decrease in turnover has been offset by a real driver of development for the Group, in and France Télécom. This operation will be significant improvement of TF1’s advertising sport and internationally. In France, Série completed in 2002. Such reinforcement market share versus 2000, Club, of which we acquired 50% in January reflects our confidence in the future and the 2001, and TF6 both successfully strengthen profitability of this modern and efficient • thanks to the reorganisation of TF1 Group’s our complementary offer of programmes. distribution platform. assets and to two years of external growth, diversifications now represent 35.6% of total Your Group is at the same time working on revenues. Distribution the distribution of content and services through high-speed phone line (ADSL). e-TF1, our Internet portal, achieved its objectives in terms of pages viewed and visits, and also from a financial point of view, with a significant reduction of its losses.

Shooting of “Navarro”

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Chairman’s statement Activity report 3

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Finally, TF1 will participate (directly or In 2001, TF1 Group has developed and In conclusion, TF1’s consolidated revenues indirectly) in the bids for Digital Terrestrial launched new parlour games: Who wants to be a should grow in 2002 by more than 10% Television frequencies, a new means of millionaire?, AttaKube and Tir et But, for which thanks to the consolidation of 50% of TPS, distributing programmes which in the long a World Cup edition is already available. What and to the revenues from the World Cup. run will replace the analogue TV we currently is more, TF1 bought the video rights for the In terms of advertising revenue, the prospects use. film The Lord of the Rings, and acquired the are unclear but growing audiences support exclusive rights for France of the World Cup the encouraging figures of the beginning of Production and acquisition of content 2002 as well as the free to air broadcasting the year. These factors allow us to believe in a rights for the best 24 matches of the Football take-up in advertising spend during the second Success was encountered not only by Tanguy, World Cup 2006. In 2002, the games will be half. TF1 is well placed to take advantage produced by Téléma (49% owned by TF1), broadcast on TF1, LCI and Eurosport France, of this. but also by the 11 films co-produced by TF1, and exploited in combination with other which have each scored more than 1 million divisions of the Group: music, merchandising, Backed by your support, and confident in our theatre entries in 2001. This confirms the phone-based services, etc. in order to extract prospects, we will again this year be proud Group’s commitment to cinema. the most value from this event. to honour the trust you have placed in TF1.

Patrick Le Lay Chairman and Chief Executive Officer

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❶ Hé Harnold ! ❷ Julie Lescaut ❸ Astérix contre César ❷ ❹ Navarro RA - ANGLAIS (1) 27/05/02 8:25 Page 4

2001 highlights 4 Activity report

❶ Passeur d’enfants ❷ Le Maillon faible ❸ Cazas

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JANUARY FEBRUARY MARCH APRIL MAY JUNE • TF1 acquired • Journalists and • Two “Oscar” • Consolidation of tf1.fr • Diamond record (one • Industrial partnership the totality of Canal+ reporters entered the nominations for The and eurosport.fr for sports million copies sold) for the agreement signed by TF1 and Havas Images digital era with “process Contender, a feature film news. album Jusqu’au bout de la Group and Endemol shareholdings in the news”. distributed by TF1 • Peugeot acquired from nuit by Emile et Images, Entertainment. Eurosport group. Eurosport • Release of La Vérité International. TF1 Licences the usage produced by Une Musique. • According to the 6th EMS International and Eurosport si je mens 2, which • Télétoon reaches more rights for the Ushuaïa The live album of Emile study (European Media France are now 100% attracted some 7.9 million French households thanks Nature brand for its et Images at the & Marketing Survey), owned by TF1. spectators1. to an agreement with “Partner” vehicle. received a golden record. Eurosport further • New Eurosport • Internet partnership cable operator UPC. • LCI now reaches • Partnership agreement strengthened its audience programme grid and between Crédit Agricole 150,000 new subscribers signed between e-tf1 leadership of pan- new identity. and TF1. www.tf1.fr is thanks to a contract and 6ème sens, the mobile European channels. • Major re-design and now content provider for between TF1 Digital and services portal of • TF1 extended for three new version of the the bank’s portal. the cable operator UPC Bouygues Télécom. years its rights in Téléfoot; website www.tf1.fr • Reportages celebrates France. • Who wants to be a which was created by TF1 • Release of the film Le its 700th edition. millionaire? launches and has been broadcast Placard by Francis Weber, • Le Pacte des loups by the version of the game for more than 20 years. co-produced by TF1 Films Christophe Gans and co- for couples. • Success of Production. The audience produced by TF1 Films • Largest audience of the Méditerranée, the TF1 exceeded 5.3 million1. Production attracts over year achieved by a French summer fiction drama. 5.2 million spectators1. movie: 11.7 million • TF1 stock enters the viewers for Le Dîner de ASPI Eurozone® share cons, an audience share of index, managed by Arese, 50.3% on individuals aged a social and environmental 2 ❺ 4 and above . rating agency.

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❹ Astérix contre César ❺ Hé Arnold ! ❻ Le Pacte des loups ❼ Eurosport - Anna Kournikova ❽ Tir et But and AttaKube

(1) Source: Le Film Français - number of spectators for the duration of the film’s showing. (2) Source: Médiamétrie. (3) Source: Cybermétrie - December 2001. RA - ANGLAIS (1) 27/05/02 8:25 Page 5

2001 highlights Activity report 5

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JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER • Video rights acquired • The TF1 autumn • 1st anniversary of TV • TF1’s authorization to • For €168 million, TF1 • Success of the limited for Jean-Pierre Jeunet’s season grid Breizh, the small-scale broadcast was renewed acquired from the Kirch series collector pack of film Le fabuleux destin characterised by general-interest channel on October 5. The new group the exclusive Amélie Poulain. d’Amélie Poulain. innovation and real-TV. focused on Brittany TF1 licence agreement television rights for • TF1 announced the • TF1 Games created • Koh Lanta, an and the sea. took effect on January 1, the 2002 football World increase (effective in within TF1 Entreprises, adaptation of , • Launch of the 2002 and covers its Cup as well as the 2002) to 50% in its whose objective is to was broadcast during “premium” channel TPS activities through to April broadcasting rights for shareholding in TPS develop and market weekends on TF1. Star, produced by TPS 15,2007. the best 24 matches on the acquisition of parlour games. • TF! started the new and combining both the • Marketing of the of the 2006 World Cup, the stakes of France • Athletics world season off with a bang emotion of cinema and parlour games Tir et But with an option over Télévision et France championships at thanks to its new the passion for football. and AttaKube launched the remaining matches. Télécom. Edmonton broadcast on identity, new series and • Standard & Poor’s by TF1 Games. • Public release of • The new capital Eurosport in its entirety, 3D programmes. gave TF1 a long-term • Birth of two Tanguy, Etienne increase reserved for Eurosportnews and • The new MédiaCabSat “A” rating and a short- subsidiaries: Alma Chatiliez’s film produced employees brings their Eurosport.com. study confirmed the term “A-1” rating. Productions, whose aim by Téléma, co-produced combined stake in the supremacy of the • On Tuesday, is to provide “prime by TF1 Films Production TF1 capital to 2.9%. analogue channels September 11 following time” fiction dramas for and distributed abroad • La Musique, the (68.8% audience share) the terrorist attacks in TF1; and TAP (Tout by TF1 International; single by the students of in households equipped the US, TF1, LCI and Audiovisuel Productions), it notched up over the Star Academy, co- with cable and satellite e-TF1 took immediate specialising in producing 4.11 million admissions produced by Universal and released good action and provided magazine formats and by December 31. Music and Une Musique, audience scores for permanent coverage field reporting. headed the Top 50 the thematic channels of the event. • TF1 stock quoted on (French chart). of the TF1 Group. • Buena Vista Home the DJSI STOXX share • TF6 blew out the Video entrusted the index, created and candle on its first distribution of its rental managed by Dow Jones birthday with its top films to TF1 Vidéo. Indexes, Stoxx Ltd and audience share for the ❼ Sam Group. DJSI STOXX 15-34 age group consists of 120 European (MédiaCabSat’s August stocks selected from study). those companies • The www.tf1.fr that have adopted ❽ website exceeds its goal a “sustainable” with 138 million pages development policy viewed in the month and strategy. and a total of more than 1,000 million for the whole year 20013. RA - ANGLAIS (1) 27/05/02 8:26 Page 6

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❶ Les Aventuriers de Koh-Lanta ❷ Une femme d’honneur ❸ Les petites Crapules RA - ANGLAIS (1) 27/05/02 8:26 Page 7

Group activity Activity report 7

Group activity

Since 1987, when TF1 was privatised, the company has moved from being a single programme provider to an integrated communications group and a major French and European player in free and pay TV.

With a 32.7% audience share on individuals aged four and above in 20011, TF1 is the most popular channel in the heart of the French public. It broadcasts free-to-air over the whole of the French territory as well as via analogue and digital cable networks and the TPS digital satellite platform.

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Centred on its prime channel, the Group’s Thematic channels such as Eurosport, As a result, the TF1 Group has access to historical and traditional base, TF1 has Eurosport News, LCI, TF6, Série Club, outstanding content through its production, developed five areas of diversification Odyssée, TV Breizh and Shopping Avenue. co-productions or its rights acquisition. It also – natural extensions of its television possesses the necessary know-how to develop know-how: Publishing and distribution of and distribute them over current and future videocassettes, DVD and music CD, platforms (analogue or digital) and to assure phone based services, home shopping their reception on all types of terminal. and merchandising. The TF1 Group now has close to Production, acquisition and sale of 40 operational subsidiaries. They enable it to broadcasting rights. diversify its revenue sources, position itself across the broadcasting industry and create Internet activities (portal and content) new value-added business. They also through e-TF1, the eurosport.com site and complement the Group’s image with new, its local versions. powerful and top of mind brands.

Pay television via a 50%2 stake in the TPS satellite bundle, which develops and distributes digital programmes and interactive services. (1) Source: Médiamétrie, and 35.5% of women under 50. (2) Effective in first half 2002. RA - ANGLAIS (1) 27/05/02 8:27 Page 8

Group activity 8 Activity report

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Broadcasting popularity. Its success is based on the same Moreover, TF1’s coverage of the tragic events principles: powerful encounters and of September 11 showed its superior a broad range of exclusive and innovative responsiveness to the news. TF1 is France’s leading general-interest brand products, as well as pride of place channel in audience share1. It has In 2001, daily news programmes continued to to events and live broadcasts. meet success, with an average of 7.0 million developed a programme offering aimed at viewers for the 1.00 pm news (53%2 of satisfying the demands of a broad cross- And because it is above all a ceremonial audience share), and 8.6 million viewers for section of the public at large: news, fiction, medium, the TF1 channel builds social the 8.00 pm news (41%2 of audience share). magazines and entertainment, cartoons, links. sports and cinema form the backbone of The TF1 news offering is complemented by investigative reporting in magazine formats the channel’s programming. TF1’s offering such as 7 à 8 or Reportages, special editions is unifying, dynamic and entertaining, and political debates such as Répondez-nous. seeking constantly to meet viewers’ News They cover topical subjects and help viewers expectations. News is the prime anchor of the TF1 brand understand the issues of public debate. and contributes to the channel’s identity. Thanks to its editorial staff of over In a context of expansion and 400 journalists, its migration to full digital individualisation of the television offering, broadcasting in March 2001, and its know- especially with the growth in number of how in news processing, TF1 always stays thematic channels and the development close to the news as it breaks. Its audience success is a natural consequence. of pay television, TF1 was able to maintain (1) Source: Médiamétrie. its leadership in terms of audience and (2) Source: Médiamétrie - individuals aged 4 and above.

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Group activity Activity report 9

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Fiction dramas Children Cinema TF1 gives pride of place to French TV drama In 1997, TF1 provided its children’s TF1 continues to be the leading channel for in its programmes, with a focus on diversity, programmes with the means to be genuinely exclusive, free to air movie broadcasts, richness and innovation. Since the arrival of innovative by creating TF! Jeunesse, devoting two “prime time” evenings a week to Navarro, which revolutionised the genre back a “channel within the channel”, targeting the cinema. The channel is aware of the key place in 1989, over the years TF1 has developed 4 to 10 age group. They enjoy their own cinema holds in the hearts of viewers. It fiction dramas spotlighting recurrent heroes identity, recognised by the children and based therefore makes every effort to offer a wide with whom the public identifies, from on a specific branding, graphic creativity and line-up of recent, general-interest films every Julie Lescaut to Une femme d’honneur, from self-promotion. By continuously refreshing year. Numerous French and international box Un homme en colère and Joséphine ange gardien its creative offering to better respond to the office hits are broadcast on TF1 each year – to Les Cordiers juge et flic. With the more recent demands of young viewers, TF1’s children’s comedies, detective films, westerns or Cazas, Sauveur Giordano and Commissariat programmes boast outstanding success. adventure features – in short all the most Bastille, TF1 offers numerous TV dramas to popular film types are on offer. which the public responds enthusiastically: The children’s programme grid is broadcast 46 of the highest rated 48 fiction dramas of the primarily on Wednesdays, Saturdays and The policy of broadcasting exclusive, event- year 2001 were broadcast on TF1(2). Sundays and includes such hits as Pokémon, based programmes, coupled with tight control Digimon, Hé Arnold, or Fifi Brindacier and of grid costs, will help sustain audience success On the strength of its recurrent heroes, TF1 Rocket Power. and ensure TF1 an exceptional market has also demonstrated its sense of innovation position for the years to come. by investing in a new genre – prestige Sport TV dramas. Le Comte de Monte Cristo, TF1 has always given special prominence to Les Misérables, and L’Aîné des Ferchaux, sport, be it through regular showing of football are the kind of action-packed programmes matches and Formula 1 racing, or through that TF1 likes to offer its viewers. magazine formats such as Téléfoot or Auto-Moto, which are among the oldest ❶ Les Castors allumés ❷ Magazines and entertainment television programmes. Miss France 2002 election ❸ Rêve d’un soir 2001 saw the emergence of a new genre on the ❹ 20 heures live from New York TF1 channel: real TV. The TF1 programme TF1 has focused on the sports most demanded ❺ Sept à Huit grid met with the loyalty of its public with Les by viewers and on the most prestigious events: ❻ Eurosport Aventuriers de Koh-Lanta, Star Academy or the the Champions League, the French national game Le Maillon faible. In recognition of its team matches, the French Football Cup and responsibilities as a broadcaster, TF1 set itself Formula 1 are the channel’s annual “musts” some simple rules in an effort to maintain and their exclusive nature gives TF1’s sports human dignity so that these new programmes programming an exceptional quality. stay in line with the channel’s editorial approach – unifying and family-oriented, In 2002, football will again be a highlight of accessible to all segments of the public. TF1 with the exclusive broadcasting of the World Cup on the Group’s channels. This Complementing its existing offering (Y’a pas major event will be the catalyst for synergies photo, C’est quoi l’amour or Les Enfants de la télé), among the TF1 channels and for exploiting TF1’s entertainment programming has been the cross-disciplinary nature of this content. enriched with innovative, sometimes slightly spicy, but always enjoyable programmes – with Vis ma Vie, Rêve d’un jour or Rêve d’un soir.

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Group activity 10 Activity report

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TF1 Publicité The other channels refine the communications On all the channels served by TF1 Publicité strategies by targeting specific population and broadcast on digital platforms, the categories. In this environment, TF1 Publicité advertisers also have the opportunity to TF1 Publicité offers a wide range offers a bundle of reference channels (whether implement interactive communications, of advertising solutions, from classic or not they belong to the TF1 Group) creating a personalised link with the viewers. advertising to relational marketing. focused on major centres of interest: Eurosport France, the general-interest Internet is now recognised by advertisers for sports channel with optimum coverage of its targeting capabilities and its flexibility. TF1 The TF1 channel is the support necessary the male population and A/B+ social class; Publicité has firmed up its position in this for mass-market communications. LCI, the 100% news channel and reference market. This is due, on the one hand, to the for decision-makers; strengthened position of the tf1.fr portal, It ensures maximum exposure to all segments of the public and enables TF6, the small-scale general-interest channel hosting thematic reference sites: les News, LCI launched end 2000, already boasts a good (news), Bourse (stock market), Tfou (children) the brands to quickly achieve the visibility performance and is very attractive to young and Plurielles (women); and on the other hand they seek. adults; it is thanks to the inclusion in 2001 of new Télétoon and Cartoon Network, two sites such as Cario.fr (initiated by Crédit significant children’s channels whose Agricole) and 6ème Sens.com (Bouygues complementary positioning and distribution Télécom). At the end of the year, TF1 ensure a broad coverage of the target; Publicité also established an original Odyssée, the ; communications lever combining the power of TV Breizh, the regional general-interest TF1 with the advantages of the Internet as a channel; relational marketing tool (the consumer site Libertytv.com, the ; TF1 conso.fr). KTO, the Catholic channel; Shopping Avenue, the home shopping 2001 also meant for TF1 Publicité embracing channel. Bouygues Télécom platforms, from new relational marketing products (spot refill card and SMS) to consumer magazines.

TF1 Publicité is customising its offering in the face of increasing demands from advertisers for global communications solutions. It offers innovative solutions that respond to its customers’ expectations.

❶ Bigdil ❷ TF1 Vidéo ❸ ❸ Julie Lescaut ❹ Téléshopping RA - ANGLAIS (1) 27/05/02 8:27 Page 11

Group activity Activity report 11

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Publishing / Distribution TF1 Vidéo Une Musique TF1 Vidéo continues to grow. Above and TF1’s music publishing and production beyond its retail and rental business, TF1 subsidiary, Une Musique, develops special Complementing the TF1 channel, the Vidéo offers several ranges of video and operations together with the broadcasting publishing/distribution business brings multimedia products through kiosk outlets channel or other subsidiaries of the TF1 together the distribution of DVD and and in 1999 launched a dedicated website: Group. Its aim is to promote consumer music www.tf1video.fr. through major events and/or to cascade videocassettes, merchandising, phone- the channel’s concepts in music form. based services (telematics), music TF1’s catalogue of over 3,000 items covers all publishing and home shopping. Historically types of product – films, sports and children’s and financially, it constitutes the TF1 products. Among its most recent successes Téléshopping Group’s first major step into diversification. can be found the musical Roméo et Juliette, Téléshopping is one of the leading operators Le Fabuleux destin d’Amélie Poulain, La Tour in the home shopping sector in France. The publishing and distribution business Montparnasse Infernale…, plus the hits of The activity of this subsidiary revolves around represented 12% of 2001 operating previous years such as: Seven, La Vie est Belle, programmes broadcast on TF1 (mornings income. Taxi or the René Château Vidéo classical from Monday to Saturday – except catalogue “la mémoire du cinéma français.” Wednesday), the eight million catalogues dispatched each year to more than one million TF1 Entreprises TF1 Vidéo also offers its products in DVD active customers, and a dedicated website. TF1 Entreprises encompasses the following format, with more than 340 titles. This market More than 60,000 orders were registered on activities: is expanding strongly; sales of DVD on the the website in 2001, generating a positive net Telematics, which design, publish and French market reached 25 million copies sold income over the past two years. distribute content and services linked to TF1 for the year 2001 (source: SEV). broadcast programmes and accessible via The TF1 Group has developed extensive kiosks, Minitel and Audiotel services as well know-how in home shopping through its as mobile telephones; Téléshopping and Shopping Avenue TF1 Licences, which markets brand licenses subsidiaries and through the dispatch of some to manufacturers (Ushuaïa, etc) and two million packages per year. This includes publishers of children’s magazines (including catalogue management, logistics processes, TF! Mag); product quality, after-sales service and others. TF1 Games, which creates parlour games based on television programmes (Who wants to be a millionaire?, Star Academy) or based on the acquisition of rights, and exploits them on different media.

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Group activity 12 Activity report

Since 1988, TF1 Films Production has invested €381 million in French cinema by co-producing 235 films, of which 70 exceeded Production and one million entries in France. This year TF1 Films Production had a stake in 11 of management of these films1: La Vérité si je mens 2 (7.9 million Furthermore, under its licence TF1 is required entries), Le Placard (5.3 million entries), Le audiovisual rights to dedicate a percentage of its net advertising Pacte des loups (5.2 millions entries), Yamakasi turnover to the co-production of French- (2.4 million entries), Belphégor le fantôme du language cinema and broadcasting products. Louvre (2 million entries), Vidocq (1.9 million In 2001, TF1 finalised the restructuring of its Production quotas have been raised for the entries), Absolument fabuleux (1.7 million “cinema” and “broadcasting rights” businesses year 2002 and onwards to 3.2% (versus 3% entries), 15 août (4.1 million entries), Wasabi by establishing a business unit combining the previously) for the co-production of (1.3 million entries), Tanguy (3.9 million following activities: French-language films. entries) and Les Rois mages (2.2 million entries). production: TF1 International Pictures, The latter two films were still showing in TF1 Cinéma and stakes in Film Par Film This investment is managed by TF1 Films cinemas in January 2002. and Téléma. Production, which co-produces some rights management: TF1 International 20 feature films each year. Consequently, this Among free-to-air channels, TF1 is the distribution: TF1 Catalogue, which brings TF1 subsidiary acquires the broadcasting leading investor in French film production, together Les Films Ariane and Ciby DA, rights for TF1 as well as the co-producer share making it one of the principal supporters of i.e., a catalogue of over 600 feature films. of receipts generated by the films. cinema.

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(1) Source: Le Film français, theatre entries. ❸ RA - ANGLAIS (1) 27/05/02 8:28 Page 13

Group activity Activity report 13

Through its 73% owned subsidiary, Glem, the TF1 group has also developed recognised know-how in the production of stage- Studios 107, based north of in La Plaine performances and entertainment programmes Saint-Denis, markets its technical services to for television. They include: producers of entertainment programmes evening specials such as NRJ Music Awards, (variety, games, etc.) and home shopping. Les Mandrakes d’Or and Miss France; They have provided technical support to numerous magazine formats such as Succès, numerous TF1 programmes such as Le Bigdil, Sans Aucun Doute, 7 Péchés Capitaux and Attention à la marche, and Y’a pas photo. They Finally, TF1 Publicité Production Confessions Intimes, produced by Quai Sud, have also acted as executive producers for executes and produces trailers, advertising which has been 60% owned by the Glem Téléshopping and Shopping Avenue programmes. or sponsorship clips, as well as mini group since the end of 2001. programmes such as Du côté de chez vous In co-operation with the TF1 Technical or Vivre com’ ça. The musical Roméo et Juliette and the shows of Division, Studios 107 have, since August 1999, Anthony Kavanagh, André Rieu and Maurice also hosted sports programmes such as Auto- Since 1996, TF1 Publicité Production has Béjart were the big events of the year 2001. Moto, Téléfoot and La Ligue des Champions. been moving towards multimedia by offering Furthermore, Studios 107 produces Ushuaïa production of interactive advertising and Through its disc production subsidiary, Baxter, Nature, the discovery programme with Internet advertising support. It also offers full Glem also produced the albums Roméo et anchorman Nicolas Hulot, and 52 sur la Une, website creation, positioning it in fact as an Juliette and Georgian Legend. the major investigative reporting magazine. authentic web agency.

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❶ L’Aîné des Ferchaux ❷ Tanguy ❸ Yamakasi ❹ Astérix contre César ❺ Georgian Legend ❻ Roméo et Juliette RA - ANGLAIS (1) 27/05/02 8:28 Page 14

Group activity 14 Activity report

Thematic channels

On the strength of its television Hence sports, news, cinema and expertise, the TF1 Group has entertainment, documentaries and home developed a broad offering shopping are today being developed by our thematic channels. Their editorial quality of complementary channels. is appreciated by viewers and they After the launch of Eurosport in 1991 complement TF1 programming, taking their place as a relay of news and and that of LCI in 1994, TF1 now entertainment. has direct stakes in eight thematic channels and indirect stakes Thanks to the thematic channels, TF1 has set up a real network, a family of channels in the seven thematic channels meeting the needs of all sectors of the developed by TPS. population.

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Group activity Activity report 15 History of the Eurosport group

1989 1993 The European Eurosport and The Broadcasting Union (EBU) European Sport Network, September 2000 founds Eurosport. Its operated by Canal+ and Eurosport launches operation is entrusted ESPN, are combined to 1999 Eurosportnews, the first to Rupert Murdoch’s produce and market a Eurosport launches its worldwide sports news NewsCorp group. single pan-European first website, channel to use Internet ❸ sports channel: eurosport.com, which is data feed. Over May 21, 1991 Eurosport. today complemented by 90 million households After a 10-day six local versions: .fr, receive Eurosport itself. interruption of the 1994 .co.uk, .de, .it, .es, .se. channel’s programmes, Eurosport acquires the January 30, 2001 TF1 takes over European advertising May 19, 2000 TF1 becomes the sole operations. services Eurosales with TF1 and Canal+ buy out shareholder of four subsidiaries in ESPN’s stake in Eurosport after acquiring November 2001 1992 Europe. Eurosport (33% of the totality of the Canal+ TF1 acquires the Barcelona: Eurosport Eurosport International and Havas Image stakes remaining 50% of SETS is the first sports channel 1996 and 10% of Eurosport (49.5% of Eurosport held by the UER to broadcast the Eurosport reaches France) for $155 million, International and 64% consortium and takes Olympic Games financial break-even split equally by the of Eurosport France) control of the Eurosport 24 hours a day. point. purchasing groups. for €345 million. brand.

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❶ Cathy Jacob ❷ Swimming ❸ Ice skating ❹ Eurosport matin ❺ Moto Grand Prix 250 Les 24 heures du Mans

Eurosport Olympics, US Open, etc.) and European The Internet offering comprising sports The sports channel Eurosport is broadcast events ( 2004, the Le Mans 24 hours race, news (latest updates, events calendars and in 18 different language versions and operates etc). results) and entertainment (games, in 54 countries on all the European satellite community, etc.) is available in six languages platforms. At the end of 2001, it was reaching With 44 million subscribers as of December (English, French, German, Italian, Spanish over 93 million households. 31, 2001, 70% of the Eurosport turnover and Swedish). This offering is in perfect comes from fees from cable and satellite harmony with Eurosport News since it is its Like last year, Eurosport has confirmed its operators. The advertising income, which direct source of content. It has doubled its leadership position among pan-European varies by event broadcast, represents close to average monthly audience with close to channels in terms of audience. Among sports 30% of the channel’s resources. Eurosport has 30 million pages viewed2. thematic channels, it takes n° 1 audience slot been profitable since 1996. in , Spain, France, Italy and By exploiting the synergies of Eurosport, Scandinavia1. Eurosport has diversified its business through Eurosportnews and the Internet, the TF1 the following: Group can thus provide sports with a cross- Its success is based on the quality and diversity disciplinary multimedia platform. of its live or first broadcast programmes Eurosportnews, the 24-hour sports news (4,000 “fresh” hours, of which 50% are live). channel, which is now broadcast in five Eurosport offers more than 6,300 hours languages (English, Greek, Italian, Polish of programmes covering 100 different sports and Turkish) and is received by 11 million such as football, athletics, motor sports, and digital households in 44 countries. the majority of winter and summer Olympic Eurosportnews offers a news update every (1) Among those countries where audience measurements of Games. It holds broadcasting rights for major 15 minutes, followed by a magazine with thematic channels are carried out. international events (summer and winter different news sections updated in real time. (2) Source: Open Ad Stream. RA - ANGLAIS (1) 27/05/02 8:28 Page 16

Group activity 16 Activity report

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LCI TF6 / Série Club Série Club, the “100% series” channel offers As of December 31, 2001, LCI was received In partnership with M6, TF1 develops and its two million subscribers the best series. by close to 4.2 million households. During the produces two thematic channels in each of year, the channel increased its penetration by which it has a 50% shareholding. The Série Club grid is characterised by: 600,000 new households, advancing on the rich and varied programming which satellite bundles and the cable networks and TF6, the “Télé très Télé” launched in alternates between original series (Farscape, taking advantage of the expansion of its December 2000 is the group’s latest thematic Homicide, Diagnosis murder, Oz, Millennium), position in the French overseas territories. channel. It is a small-scale general-interest modern series (Buffy, Roswell), “gold” series channel broadcast on TPS and cable networks. (Le Fugitif) and some classics (Code Quantum, For LCI, 2001 was a year of contrasts, difficult Wonder Woman, etc); economically and demanding editorially. Determined to serve the widest possible a theme for each evening of the week with Subsequent to the September 11 events, LCI audience, TF6 offers rich and up-to-date a specific look and a promise to viewers showed its know-how by maintaining programmes, with new concepts such as Bandes to offer them the best of a genre; complete, in-depth and real-time coverage à part or Sexe sans complexe, and a cinema a privileged relationship with the viewers around the clock, which was essential to keep offering that focuses on such films as La leçon de thanks to full information before each series the population informed. Dire et expliquer piano, Demolition Man, and Casino, plus exclusive (episode, season, version, subsequent (“Tell and explain”) was the LCI motto during and original series (Sheena, Gilmore Girls, Les re-broadcasts) and screenings to help them this period, a time when the channel was able Associés, Cold Feet, etc). select the original series they would like to respond to public expectations and create TF6 also offers an updated version of the Top to see on the channel. lasting links with public opinion. 50 and broadcasts a large number of music clips. In March 2002, TF6’s MédiaCabSat results According to the March 2002 MédiaCabSat were very promising since it showed the study, LCI is the news channel most appreciated channel as the audience leader on TPS on by the French, with 4.9 million viewers per individuals aged 4 and above and women week. In the cable and satellite landscape, LCI below 50 (excluding free-to-air channels). is the channel most watched by the A/B+ categories, with an audience share of 2%. TF6 has set itself the ambitious objective of unifying a population in search of innovative and original programmes and of becoming the reference channel for the new television wave.

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Odyssée TV Breizh Shopping Avenue Odyssée, launched in 1996, is one of the first TV Breizh, France’s first regional television Shopping Avenue is a non-stop home documentary channels available on cable channel, celebrated its first birthday in shopping channel on TPS and the cable and satellite. It offers 17 hours of varied September 2001. network. It offers a simple, modern vehicle topics per day covering nature, animals, for window-shopping. science, history and more. TV Breizh is broadcast on two satellite bundles, TPS and CanalSatellite, as well as on Shopping Avenue offers the pleasure of Odyssée has instituted thematic “meetings” the main French cable networks. At December shopping combined with the comfort and each evening at 8.45 pm. Subjects covered 31, 2001, it was accessible by 3.2 million freedom of choice. Each day, new products include: Pays de France, Itinéraires sauvages, Sans households. are on offer, targeted at a younger and more frontières, Aventure, L’Histoire du monde, Docs affluent audience than traditional home et Débats conceived and presented by Gérard It is a small-scale general-interest channel that shopping programmes. Carreyrou. broadcasts every day from 9.00 am to 1.30 am. Programme types are the same as on the The Shopping Avenue grid comprises some As of December 31, 2001, Odyssée had national channels: feature films, fiction dramas, 12 themes. Starting in June 2002, it will be 1.7 million subscribers. series, cartoons, magazines, documentaries, enhanced with eight hours live a day, so as news, sport, etc. Some of its programmes are to more closely resemble the international Odyssée has co-produced more than 250 hours accessible in Breton (especially children’s format of home shopping channels. of documentaries over five years. New to programmes) thanks to a double sound viewers this year were L’opium des Talibans, channel. Algérie, Paroles de tortionnaire and Les 100 jours de la Somme. The year 2001 was marked by a gradual inclusion of new programmes in the TV In addition, viewers can find out what’s on in Breizh grid (Actu Breizh, regional football the weeks to come by accessing matches, Défi Foot TV Breizh, Chapeau Melon www.odyssee.com. et Bottes de cuir, Arabesque, etc). However, a clear and systematic distinction has been made between national programmes broadcast during “prime time”, and regional programmes broadcast during “access prime time” and “night time”.

TV Breizh wishes to attract a broad audience ❺ throughout France yet maintain its regional roots and its Celtic and Breton themes. ❶ Providence ❷ Présumé innocent ❸ Michel Field ❹ Sheena ❺ Un vétérinaire pas comme les autres 2 ❻ TV Breizh

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TPS - satellite television Today TPS offers TPS: producer and service provider Over 170 digital quality channels and services, TPS is the only French digital television including all the national channels, 5 cinema operator to combine production and service channels, 400 football matches per year provision. TPS is also the leading cable and TF1 is actively contributing to the digital (of which 242 Premiere League matches), satellite producer in terms of investment in its revolution in France through its 50%1 stake and all the other sports. Plus, more than programmes. Such know-how enables TPS in TPS. At the end of 2001, just five years 30 thematic channels, a choice of 16 optional to offer its subscribers consistently appealing channels, 71 channels from across the globe, programmes. after it was founded, TPS reached 7 pay-per-view channels, 51 non-stop 1.1 million households via Direct Broadcast interactive services, and 42 digital sound September 2001: introducing TPS Star Satellite. The figure rises to 1.34 when radio stations. With the September 19 launch of the access via the cable networks is included. premium channel TPS Star, TPS has created In 2001, new channels appeared on the a channel which allows viewers to experience bundle: TFJ, Cinéinfo, as well as events-based both the emotion of cinema and the passion channels Loft Story and Star Academy. for football, on the TV screen.

The programme includes a wide choice of exclusive or recent films, coverage of the complete French Premiere League football championship, plus a big match live and exclusive each match day. Then there are daily magazines on cinema and football. TPS Star even includes an interactive service on the same subjects.

(1) Following the acquisition of the France Télévision and France Télécom stakes in the first half of 2002.

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❶ L’Affaire Thomas Crown ❷ Lara Croft ❸ Infosport ❹ Hé Arnold !

Cinema and football: the cream Interactive services on demand of the TPS offering Today, 91% of subscribers use the interactive On the basis of its agreements with a large features including electronic programming number of US studios and of its policy of guides, weather forecast, home banking, financing French cinema, TPS can offer the networked video games, e-mail, classifieds and TPS subscribers of TPS Star, Cinestar1, Cinestar2, horoscopes. TPS Interactif, the subsidiary facts and figures Cinefaz, Cinétoile and Multivision more than specialising in design, development, 1,000 films a year, including exclusive first runs production and operation of TPS interactive Source: BVA - October 2001. on television. services, has launched around 250 permanent or events-based services. And the contract signed with the French National Football League enables subscribers to watch 242 Premiere League matches per season on TPS Star and Multivision. Our subscribers Infosport: non-stop sports news A young customer base: Infosport gives its subscribers the opportunity 69% are under 50, to keep abreast of sports news seven days a 38% are under 35. week with a news bulletin every 15 minutes from 7.00 am till 1.00 am.

Teletoon: a channel just for children Small-town/rural subscribers: Teletoon continues its policy of investing in 75% live in towns of under cartoon production. That translates into a 100,000 inhabitants. unique level of cartoon programme diversity and the advent of new cartoon characters.

Modern households: 62% have a PC 26% have Internet access at home

Company profile TPS employs 850 full-time staff at 4 sites.

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❶ Sophie Rousseau ❷ Ushuaïa ❸ Les Enfoirés Opération Pièces Jaunes

Internet These major themes are complemented by Creative and technical know-how cross-interest content: Since its launch, e-TF1 has initiated a number of technological projects enabling it to video – with a varied offering of more than introduce a spectrum of value-added technical e-TF1, a 100% subsidiary of TF1 SA, 25,000 videos on-line and on-demand. tools. These not only help manage numerous develops and produces multimedia content Moving images on the Internet is a strategic services and contents but also add value to and services that are made available over thrust for e-TF1 with the advent of high- that content, which can be adapted for major the fixed (Internet) and mobile (WAP, PDA, speed access and technological advances in partners. etc.) networks. Today the offering is video image compression and transmission. It is also a key editorial direction with the Indeed, by capitalising on its know-how and incorporated into the www.tf1.fr website, deployment of “rich media” content enabling leveraging its audiences, e-TF1 has signed which is one of the most popular French videos to be indexed and supplemented with agreements with major industrial partners. websites with 7.6 French visitors and some text, sound and images; This is the case in the area of mobile 140 million pages viewed a month1. communities, enabling surfers to respond, multimedia where e-TF1 creates and develops communicate and share ideas through content for Bouygues Télécom. In fixed forums, chats or photo album swapping, etc.; Internet, e-TF1 supplies the Crédit Agricole A general-interest site mobility, an area where e-TF1 was an early group with content and has developed the www.tf1.fr is a general-interest, consumer starter offering several mobile telephone portal for its “Cario” Internet access website. Its full, rich offering combines the services – downloading logos and ring tones, (www.cario.fr), both in its national version and themes of the Group’s channels and the creating games and SMS services, etc. in its various regional sub-versions. specifics of the Internet medium. Among the prime topics can be found: The tf1.fr positioning aims at building up a Similarly, e-TF1 is working on the news, which is handled in all its forms - wide-ranging audience and taking advantage of development of Internet pay content and non-stop general-interest news as well as the marketing opportunities this provides. The service with the aim of creating new sources of national and international and also economic site offers a palette of advertising tools with the income for the business. The first tests of and financial news on the Les News possibility of reaching a broad yet targeted combining Internet with Audiotel/Minitel and lci.fr sites; audience. e-TF1 also offers a trading were successfully completed in 2001, notably sport, with a multi-sport site produced in mechanism that gives considerable visibility to for games. e-TF1 will pursue the roll-out of a partnership with Eurosport; e-commerce enterprises. range of pay-per-play games while piloting games, which enjoy significant success new forms of payment. thanks to a full offering: games derived from their TV format but in interactive and multi-player form (The weakest link, Who wants to be a millionaire?, etc.); sports games (such as “playing the coach”); classic arcade games; quizzes, etc.; entertainment with content in harmony with the channel’s programmes and events. In 2001, these products expanded with the success of the sites devoted to the programmes featuring Koh Lanta, the Miss France contest and Star Academy; children: the Tfou and Ptifou sites offer the children a wide choice of fun and educational content (with colouring workshop, games, etc.); www.tf1.fr also offers Plurielles, a site focused on the feminine world.

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TF1, non-trading The Goup’s thematic channels also seek to Environment inform, notably Odyssée, the channel devoted TF1 plays an active role in making the public company to documentaries. aware of environmental issues.

For two months in 2001, in partnership with TF1, the channel of solidarity the Ministry of the Environment, TF1 showed A responsible television company Above and beyond its vocation as a clips every day before the one o’clock news. As a major national media company, TF1 broadcaster, TF1 also takes an active part in Entitled “Merci” dit la planète, their aim was attaches great importance to the respect the promotion of actions of general interest. to demonstrate that each individual can of viewers through a responsible and family- personally and with little effort contribute oriented editorial policy and programmes that As in the past 12 years, TF1 continues to to the environment. In addition, regular are accessible and understandable by everyone. support the Pièces Jaunes (small change) programmes such as Ushuaïa or Très chasse In agreement with the CSA, TF1 has adopted operation, which in 2001 collected close to are oriented towards the environment. the use of information symbols for programme €10 million to finance projects aimed at identification. Furthermore, programmes improving the conditions and care of Furthermore, the TF1 Group makes every for children are vetted by psychologists. hospitalised children. This operation is effort to respect simple rules for the protection organised by the foundation Hôpitaux de Paris of the environment. It has instituted a policy In renewing TF1’s licence on October 5, 2001, - Hôpitaux de France and benefits from of recycling waste linked to its activity. the CSA underscored the channel’s efforts in awareness advertising banners on the channel. This concerns paper, batteries, neon lights subtitling programmes for the hearing- The Pièces Jaunes high-speed train cross- and printer toner, etc. With some 20 tons impaired. It fixed a minimum annual volume country tour was highlighted in the TF1 and of paper recycled per year, TF1 is the leading of 1,000 hours for this type of programme. In LCI news bulletins. enterprise in Boulogne-Billancourt in terms 2001, TF1 broadcast 1,816 subtitled hours. of paper recycling. For the second year running, TF1 and the association Ensemble contre le Sida combined A multi-ethnic channel their efforts for 48 hours live in favour of the TF1 and sustainable development In co-operation with the CSA and the fight against AIDS, informing, mobilising and TF1 is aware that its activity is not simply one associations Egalité and le Club Averroes, encouraging viewers. The two days focused of the present point in time and endeavours to TF1 has committed to significantly increase on the need for prevention and the care of ensure that its economic expansion brings the presence of anchors, journalists and actors sufferers and collected over €3.5 million in advantages to everyone. from “visible minorities” on the channel. While committed donations. Faithful to its policy, challenging the idea of quotas, TF1 has agreed the association donated 50% of the sum The efforts made by TF1 as part of its policy to increase its efforts to discover talent in these collected to research and 50% to prevention of sustainable development have led to its communities and, all things being equal, and support programmes. inclusion in two stock exchange indices: the to promote their access to the channel. DJSI1 and the ASPI® of Arèse. TF1 has been Such ad-hoc operations add to an on-going honoured by being included in these indices policy of solidarity with a multitude of based on the positions it has taken in such An informative channel charitable organisations to which TF1 devotes areas as respect for the environment, In 2001, TF1 broadcast over 1,610 hours advertising space to promote their activities. social policies, risk management, of magazines and documentaries (that is, Aides et Action, the Comité National Contre le corporate governance, and the equivalent of 67 full days of broadcasting). Tabagisme, the Fondation de France, Reporters relations with private TF1 is aware that its leadership, in terms Sans Frontières, Unicef and many others have shareholders. of audience, is an efficient vehicle for giving benefited from the support of TF1 these programmes great visibility to a wide to obtain greater exposure. population. (1) DJSI: Dow Jones Sustainability Indexes. On November 5, Sophie Rousseau - La vie avant tout won the Midas Prize, presented by the International Science Fiction Festival, which is awarded to the best fiction film broadcast in Europe, in which science or technology ❹ play a significant role.