MILESTONES 2012-2013
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01 Profi le
02 Message from Arnaud Lagardère
03 Governance
08 Key shareholder data
14 Worldwide presence
16 Human resources
18 Sustainable development
26 Jean-Luc Lagardère Foundation
28 Cultivating innovation
30 Lagardère Publishing
40 Lagardère Active
50 Lagardère Services
60 Lagardère Unlimited
68 Contacts
69 Publications PROFILE
LAGARDÈRE, A WORLD-CLASS PURE-PLAY 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 Active: Press, Audiovisual (Radio, Television, Audiovisual Production), Digital and Advertising Sales Brokerage; • Lagardère Services: Travel Retail and Distribution; • Lagardère Unlimited: Sport Industry and Entertainment.
Informer, Rassurer, Partager Grasset
••• ••• ••• ••• KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE GOVERNANCE .. DATA PRESENCE RESOURCES MESSAGE T HE LAGARDÈRE GROUP SAW A RETURN TO PROFITABILITY IN 2012, WITH ATTRIBUTABLE PROFIT REACHING 89 MILLION, AND FROM ARNAUD NET SALES HOLDING STEADY DESPITE A VERY TOUGH MARKET. THE GROUP’S MEDIA BUSINESSES POSTED RECURRING EBIT SLIGHTLY HIGHER THAN OUR GUIDANCE. THESE GOOD FIGURES LAGARDÈRE REVEAL A GROUP THAT HAS THE STRENGTH TO RESIST THE CURRENT ECONOMIC UNCERTAINTY AND LACK OF SHORT-TERM MARKET VISIBILITY.
We h ave continued to follow our policy of a premium media righ ts intermediary in Europe developing growth businesses and managing and the rise of commission-based business. our business portfolio, especially at Lagardère Lagardère is fi nancially robust, with excellent Active, which acquired LeGuide.com and liquidity and an appropriate level of debt for its BilletReduc.com, expanding its Digital business and the market climate: suffi cient to operations and reducing its exposure to the ensure our independence and offer a stable advertising market. Lagardère Services acquired dividend. the Duty Free activities of Rome’s airports, in line with its growth strategy for Travel Retail, which In 2013, th e talented men and women who now accounts for 56% of this division’s activity. work for our Group and who represent our most valuable asset will continue to drive the success As we are cont inuing to focu s on our media of Lagardère, and I would like to commend business, we have sold ou r entire stake in EADS. them here for their commitment and their This divestment will help to reduce the holding professionalism. company valuati on discount; the proceeds from the transaction will be partly redistributed to And I would like to thank you, our shareholders, shareholders and employee s, and partly u sed to for your loyalty and your support. reduce the Group’s debt.
Lagardère Unlimited has also begun its recovery, and I am confi dent that the division will see a return to profi tability in the medium term, driven by the reduction of risk linked to its activity as Arnaud Lagardère
These good gures demonstrate the Group’s resilience
2 . Lagardère / 2012-2013 Milestones 2012 MANAGEMENT TEAM
THE EXECUTIVE COMMITTEE’S ROLE IS TO SHARE INFORMATION AND COORDINATE ACTIONS TAKEN BY THE MANAGING PARTNERS.
It assists the Managing Partners, who are members of the Committee, in the fulfi lment of their duties, which are to:
• defi ne the Group’s strategy; • coordinate its development and control; • make the key management decisions as and when appropriate and ensure that they are implemented at both parent company and operational levels.
The Managing Partners also draw on Lagardère Media’s Operating Committee which includes the division senior managers and meets every month.
C OM VE M TI I U TT EC E X E E Arnaud Lagardère General and Managing Partner, Lagardère SCA
Pierre Leroy Dominique D’Hinnin Thierry Funck-Brentano Co-Managing Partner, Lagardère SCA Co-Managing Partner, Lagardère SCA Co-Managing Partner, Lagardère SCA
Ramzi Khiroun Spokesperson, Lagardère SCA Chief External Relations Offi cer
Arnaud Nourry Denis Olivennes Dag Rasmussen Arnaud Lagardère Chairman and Chief Executive Chairman and Chief Executive Chairman and Chief Executive Chief Executive Offi cer, Offi cer, Hachette Livre Offi cer, Lagardère Active Offi cer, Lagardère Services Lagardère Unlimited
Gérard Adsuar Norbert Giaoui Deputy Chief Financial Offi cer, General Counsel, Lagardère SCA Lagardère SCA
* * Lagardère Media’s COLM Operating Committee.
3 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE GOVERNANCE .. DATA PRESENCE RESOURCES
FRENCH PARTNERSHIP LIMITED BY SHARES: PRESENTATION
Lagardère is a French partnership limited by shares (société en commandite par actions – SCA), which has two categories of partners:
• two General Partners (Associés Commandités), who are jointly and severally liable, to an unlimited extent, for the Company’s liabilities;
• Limited Partners (Associés Commanditaires or shareholders) whose liability as regards the company’s losses, like that of shareholders in a société anonyme (form of French joint stock corporation), is limited to the amount of their contributions. The Limited Partners alone designate the members of the Supervisory Board, the General Partners being unable to participate in the voting.
Because of the two categories of partners, collective decisions require consultation of both the shareholders, in Annual General Meetings, and of the General Partners.
The Company is managed by the Managing Partners (Gérants) under the supervision of the Supervisory Board, which represents the shareholders.
4 . Lagardère / 2012-2013 Milestones General Partners Managing Partners
Arnaud Lagardère • Arnaud Lagardère Arjil Commanditée-Arco • Arjil Commanditée-Arco represented by: Arnaud Lagardère Chairman and Chief Executive Offi cer
Pierre Leroy Statutory Auditors Deputy Chairman and Chief Operating Offi cer Dominique D’Hinnin Chief Operating Offi cer Ernst & Young et Autres Thierry Funck-Brentano Mazars Chief Operating Offi cer
The French partnership limited by shares (SCA): a modern structure that is perfectly suited to the requirements of corporate governance
An SCA allows an absolute separation of powers between the Furthermore, Lagardère SCA encourages the management management bodies (General Partners and Managing Partners) bodies to run the Company in a responsible and careful manner and the supervisory bodies (Supervisory Board). with a long-term perspective, since the Managing Partners are No member of management can be a member of the also General Partners, and thus have unlimited liability for the Supervisory Board. Company’s debts.
Lagardère SCA: increased shareholder rights
Lagardère SCA has adapted its Articles of Association to strengthen shareholders’ rights by granting them specifi c powers:
Right of veto over the appointment Approval in the event of a change of of the Managing Partners control of Arjil Commanditée-Arco
The Supervisory Board, which represents the shareholders, (General and Managing Partner) must give its consent to the appointment of the Managing The Supervisory Board must give its prior agreement to: Partners by the General Partners. • any sale or issue of shares leading to a change of control of In the event of any ongoing disagreement between the Arjil Commanditée-Arco (except in the case of a valid takeover General Partners and the Supervisory Board, the shareholders bid for all the Lagardère SCA’s shares); themselves have the ultimate say in an Annual General Meeting. • any new shareholder in this company.
5 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE GOVERNANCE .. DATA PRESENCE RESOURCES SUPERVISORY BOARD
The main task of the Supervisory Board, which is An independent Board appointed by the shareholders, is to: • carry out ongoing supervision of the Company’s management; More than four-fifths of the Board members are • ensure that the Company has the resources it needs independent. to assess and monitor its risk exposure. To do this, the Supervisory Board meets regularly, and in A fl exible Board, with frequent 2012 met four times. It reviews the financial position and turnover of members operations of the Company and its subsidiaries, the annual and interim financial statements and the outlook for each of the Group’s activities, and considers the work carried In 2010, the length of the Board members’ terms of office out by the committees. was changed. Members are now appointed for a maximum period of four years, which gives shareholders the opportunity to renew half of the Board every two years.
Experience as manager Financial expertise of an international company Georges Chodron de Courcel Javier Monzón Chief Operating Offi cer, BNP Paribas Chairman, Indra Sistemas François David Didier Pineau-Valencienne François Roussely Former Chairman of the Board of Directors, Coface Former Chairman and Chief Executive Offi cer, Deputy Chairman, Patrick Valroff Schneider SA Crédit Suisse Europe Former Chief Executive Offi cer, Crédit Agricole CIB
Hélène Molinari Chief Operating Offi cer, MEDEF Nathalie Andrieux Amélie Oudéa-Castéra Chairman, Mediapost Marketing Director, Service and Digital, Axa France. Former professional Antoine Arnault tennis player Chief Executive Offi cer, Berluti Susan M. Tolson Pierre Lescure Former Senior Vice President, Former Chairman and Chief Capital Group Executive Offi cer, Canal+ SA. Former Chief Executive Offi cer, Vivendi Universal
Media/Sports/Technical innovation/Legal and governance expertise/ Workforce relations/Communication Xavier de Sarrau Lawyer specialising in the governance and organisation of family and private groups Martine Chêne Former CFDT Union Representative within the Group Committee Jean-Claude Magendie Former First President of the Paris Court of Appeals
6 . Lagardère / 2012-2013 Milestones The Board’s expertise covers the Group’s main businesses, enabling it to fulfi l its supervisory duties
The Supervisory Board has always been committed to ensuring search and selection work carried out by the Appointments and that its members are chosen for their managerial, fi nancial, Remuneration Committee. strategic and legal skills and experience, and their professional The candidates proposed would strengthen the Board by ethics, so as to be able to respond appropriately and fully to all providing complementary skills in some of the Group’s business the requirements needed for its supervisory role within the lines, including distribution, culture and new technologies. They Lagardère group. would also bolster the Board’s in-depth expertise in fi nance and The Supervisory Board is chaired by Xavier de Sarrau, a lawyer human resources. These appointments would also comply with specialising in governance issues. Xavier de Sarrau is an generally accepted governance rules, since both candidates are independent member. fully independent with respect to the Group. Shareholders will In order to propose candidates for appointment to the be called upon to vote on these appointments in the Annual Supervisory Board as replacements for outgoing members in General Meeting of 3 May 2013. the Annual General Meeting of 3 May 2013, the Board used
A Supervisory Board with committees that help it to prepare and organise its work
Two special committees have been set up: Audit Committee Appointments and Remuneration
The Audit Committee carries out preparation work for the Board, Committee in particular with respect to reviewing the accounts and verifying Given the need for Supervisory Board members to have the reliability and clarity of the information that will be provided to professional experience that helps them fulfi l their control duties shareholders and the market, and with respect to monitoring the (see page 6) while complying with governance rules in terms of effectiveness of internal control systems and risk management independence, diversity etc. the Supervisory Board set up the procedures. Appointments and Remuneration Committee in 2010 to provide effective assistance in this area. All Audit Committee members have fi nancial and accounting expertise, and more than two-thirds of the members are Two thirds of the Committee’s members are independent, independent. The Audit Committee is chaired by Xavier de including François David, the Committee’s chairman. Sarrau, an independent member. In 2012, the Appointments and Remuneration Committee used Its operations comply with the standards of applicable an independent recruitment fi rm to carry out the search and regulations. selection of candidates order to propose candidates for appointment to the Supervisory Board. Most of the Audit Committee’s meetings precede the meetings of the Supervisory Board by a few days so that the latter can be prepared effi ciently.
Compliance with the AFEP-MEDEF Code of Corporate Governance
The Supervisory Board of Lagardère SCA is committed to • a maximum term of offi ce of four years; meeting the recommendations of the AFEP-MEDEF Code of • remuneration of Board members based on their attendance at Corporate Governance for Listed Companies, which the meetings; Company has decided to adopt. This is shown by: • increasing representation of women on the Board; • the strong independence of the Supervisory Board; • a yearly Supervisory Board meeting not attended by the • the creation of committees to prepare the Board’s work; Managing Partners. • annual self-assessment of the Board and an external assessment every three years;
7 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE.. GOVERNANCE DATA PRESENCE RESOURCES
Key fi gures 2008 2009 2010 2011 2012 Δ 2012/2011
Profi t attributable to owners of the parent, per share €4.62 €1.08 €1.29 -€5.56 €0.70 NS Adjusted profi t attributable to owners % of the parent, per share* €2.78 €2.06 €2.24 €1.78 €1.62 -9 Dividend per share €1.30 €1.30 €1.30 €1.30 €1.30 ** =
Share price at 31 December €29.00 €28.41 €30.83 €20.40 €25.29 +23.9%
Yield 4.48% 4.58% 4.22% 6.37% 5.14% NS
Market capitalisation (€m)*** 3,803 3,725 4,043 2,675 3,316 +23.9%
*Excluding the contribution of EADS and non-recurring/non-operating items. **Proposed dividend to be submitted to a vote by shareholders at the Annual General Meeting of 3 May 2013. ***As at 31 December.
Information about Lagardère shares
• Codes: ISIN (FR0000130213), Ticker (MMB), Bloomberg (MMB:FP), Reuters (LAGA.PA). • Listing market: Euronext Paris (compartment A). • Member of: SBF 120, CAC Next 20, MSCI Europe. • Shares eligible for the Deferred Settlement Service (SRD) and French “PEA” share savings plans.
Share ownership structure and voting rights at 31 December 2012
% of share % of voting capital rights
Lagardère Capital & Management 9.30% 14.94%
Treasury stock 2.49% –
Employees 1.45% 2.08%
Individual shareholders 6.02% 8.29%
French institutional investors 16.79% 17.25%
Non-French institutional investors 63.95% 57.44%
Total 100.00% 100.00%
8 . Lagardère / 2012-2013 Milestones SHARE PRICE
Share price performance since January 2012 Performance in 2012 1 January-30 March 2013 Lagardère: +23.9% Lagardère: +13.6% CAC 40: +15.2% CAC 40: +2.5% 140 CAC 40 Lagardère 130
120
110
100
90
80 Jan. 12 March 12 May 12 July 12 Sept. 12 Nov. 12 Jan. 13 March 13
Source: Nyse Euronext.
PAYMENTS TO SHAREHOLDERS SINCE 2003 Payments made to shareholders each year (€m) 2003 130 2004 179 € 2.7bn paid out 2005 501 to shareholders 2006 419 2007 500 2008 276 Ordinary dividends 2009 173 Share buyback 2010 167 Exceptional dividend* 2011 169 2012 166
*In 2005, Lagardère paid a special dividend of two euros per share following the sale of T-Online shares received in exchange for Club Internet.
DIVIDEND
Ordinary dividend per share since 2003
2003 €0.90 €1.00 2004 The dividend proposed to shareholders at the Annual General Meeting 2005 €1.10 of 3 May 2013 in respect of the 2012 fi nancial year was €1.30 per 2006 €1.20 share and is therefore maintained at the same level as for 2011. €1.30 2007 This is in keeping with the pro-active policy of paying returns to 2008 €1.30 shareholders, which combines stable ordinary dividends since 2009 €1.30 2007 and ad hoc share buyback programmes (from 2004 to 2008) 2010 €1.30 or exceptional dividend (in 2005). 2011 €1.30 2012 €1.30
9 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE.. GOVERNANCE DATA PRESENCE RESOURCES
Shareholders’ Consultative Committee
In 1997, the Lagardère group formed a Shareholders’ Consultative The Committee has considered themes such as: Committee representing individual shareholders. • fi nancial communication via the Group’s website; The Committee’s objectives are to: • sustainable development; • improve fi nancial communications between the Group and its • the annual report; shareholders; • the Group’s business development and strategy. • refl ect on shareholders’ expectations and their perception of the Anyone interested in becoming a member and participating Group and its investor relations policy (fi nancial results, strategy, in the Committee’s work should contact the Investor Relations the Annual General Meeting, etc.). department via the Investor Relations section of the Lagardere.com The Committee consists of representatives of individual website. shareholders (natural persons and shareholder associations) along with representatives of Lagardère, including one Managing Partner.
Shareholder relations
Information Meetings with investors for shareholders and fi nancial analysts
The Group provides its shareholders with comprehensive and easily In 2012, the Group met with over 400 investors (shareholders and accessible fi nancial information on a regular basis in various ways bondholders), conducted around 15 roadshows in Europe and including the distribution of fi nancial press releases by an North America and participated in fi ve sector-specifi c conferences. AMF-approved provider, publications on its website and live The programme for 2013 will cover new fi nancial markets. broadcasts of fi nancial results presentations and the Annual The Group also carries out specifi c communication relating to General Meeting. certain Group businesses (Lagardère Unlimited in January 2011 and The Lagardere.com website includes two sections especially for Lagardère Services in June 2012) through investor days. investors and individual shareholders, including documents relating The Group maintains close and regular relations with fi nancial to the Annual General Meeting, answers to frequently asked analysts, including through the publication of earnings and sales questions and information about how to become a shareholder. fi gures and conference calls. Specifi c sections are also provided on particular topics such Information meetings for individual shareholders are also organised as sustainable development, corporate governance, regulated across the French regions in conjunction with the French Federation information and debt. of Investment Clubs (F2iC). One such meeting was held in Toulouse in April 2012 and another in Lille in December 2012.
10 . Lagardère / 2012-2013 Milestones SECURITIES SERVICES AND REGISTERED SHARES
Lagardère SCA’s share capital is made up entirely of registered shares, held either in administered form (via a fi nancial intermediary) or in directly registered form (via BNP Paribas Securities Services). Thanks to this form of shares, all shareholders: • are systematically invited to Annual General Meetings and can vote more easily by post; • benefi t from double voting rights once they have held shares on a continuous basis for four years.
Practical information about how to transfer directly registered shares to BNP Paribas Securities Services can be found on the Lagardère website.
The main advantages of holding shares in directly registered form are: • no custodian fees; • dividends paid directly on the date of payment decided by the Annual General Meeting; • free handling of standard instructions relating to the ordinary running of the securities account: transfers, donations, adjustments etc.; • taking care of passing on instructions from the shareholder to sell securities; • guaranteed receipt of documents relating to the running of the account periodically or on request, as soon as possible and free of charge.
Financial calendar
• 3 May 2013: 2012 Annual General Meeting • 10 May 2013: payment of 2012 dividend • 14 May 2013: net sales for the fi rst quarter of 2013 • 29 August 2013: 2013 fi rst-half results • 12 November 2013: net sales for the fi rst nine months of 2013
2013 OUTLOOK
In 2013, the Media recurring EBIT before associates is expected to increase by 0% to 5% at constant exchange rates, compared to 2012. This guidance is based notably on the assumption of a circa 5% decrease of advertising sales for Lagardère Active.
11 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE.. GOVERNANCE DATA PRESENCE RESOURCES
2012 RESULTS 2012: the Lagardère group demonstrates its resilience 6,000 7,000 8,000 Net sales 2011 7,657 Net sales remained stable thanks to the strategy of developing (€m) -3.7% 2012 7,370 growing business lines – in particular E-books and Travel Retail – which helped to offset the impact of continuing diffi cult market conditions. 300 360 420 At Lagardère Publishing, the Group achieved major publishing Recurring 2011 414 successes in General Literature and enjoyed further growth in operating profi t -13.5% 2012 358 e-books. Operating margin remained at a high level of 10.7%. from Media (€m) Lagardère Active sustained a slight drop in sales (excluding the sale of the International Magazine Publishing business) and continued -707 -350 0 to expand its Digital activities via acquisitions, in particular that of Profi t 2011 -707 NS LeGuide.com, with signifi cant improvement in operating margin attributable to 89 to 6.4% under diffi cult market conditions. Lagardère Services owners of the 2012 achieved solid growth in Travel Retail, with the continuation of its parent (€m) strategic shift of the last few years. It was a more diffi cult year for 100 175 250 Lagardère Unlimited, which was subject to less favourable events Adjusted profi t 226 2011 -8.4% and saw its margins affected by exceptional items. attributable to 207 owners of the 2012 Recurring operating profi t from Media – covering the four parent* (€m) divisions mentioned above – came out at €358 million, slightly above the announced guidance. 250 325 400 Profi t attributable to owners of the parent was positive again Cash fl ow 2011 257 from operating +52% at €89 million. 2012 391 activities Cash fl ow from operating activities increased signifi cantly (€m) thanks to considerable improvement in the change in working 40 50 60 capital requirement. 42 Gearing ratio** 2011 +15 pts The Group’s fi nancial position remains healthy, with (%) 2012 57 excellent liquidity. The successful €500 million bond issue carried out in October 2012 attested to investors’ confi dence in the Lagardère group’s strategy and the solidity of its fi nancial profi le.
*Excluding the contribution of EADS and non-recurring/non-operating items. **Net debt/equity.
Breakdown of 2012 net sales Breakdown of 2012 recurring operating by division profi t from Media by division
52% Lagardère Services 27% Lagardère Services
6% Lagardère Unlimited 16% Lagardère Active
28% Lagardère Publishing 57% Lagardère Publishing 14% Lagardère Active NB: Lagardère Unlimited recurring operating loss in 2012: -€33m.
12 . Lagardère / 2012-2013 Milestones Condensed consolidated balance sheet
2011 2012 (€m)
Non-current assets (excl. investments in associates) 3,626 3,922
Investments in associates 1,771 1,451
EADS 277 -
Other associates 1,494 1,451
Current assets (excl. short-term investments and cash) 2,781 2,847
Short-term investments and cash 737 703
Assets held-for-sale 13 437
TOTAL ASSETS 8,928 9,360
Shareholders’ equity 3,024 2,991
Non-current liabilities (excl. debt) 553 670
Non-current debt 1,843 2,165
Current liabilities (excl. debt) 3,345 3,296
Current debt 163 238
Liabilities associated with assets held-for-sale - -
TOTAL EQUITY AND LIABILITIES 8,928 9,360
Condensed consolidated income statement
2011 2012 Δ 2012/2011 (€m)
7,657 7,370 -3.7% Net sales
402 339 -15.6% Recurring operating profi t before associates
(95) (82) -13.7% Finance costs, net
(105) (40) NS Income tax expense
(707) 89 NS Profi t (loss) attributable to owners of the parent
226 207 -8.4% Adjusted profi t attributable to owners of the parent*
*Excluding the contribution of EADS and non-recurring/non-operating items.
The consolidated fi nancial statements were prepared in accordance with IFRSs. The Lagardère group’s business operations are divided into four operating divisions that make up Lagardère Media. This is in addition to the contribution from the Group’s interests in EADS, as well as other activities not directly related to the operating entities of Lagardère Media.
13 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER WORLDWIDE HUMAN PROFILE.. GOVERNANCE DATA PRESENCE RESOURCES WORLDWIDE PRESENCE
FRANCE
January-December 2012 Europe 1 has more podcast listeners than any other radio station in France for 12 consecutive months, with more than 63.6 million downloads in 2012. June 2012 TV channel Gulli is voted “Best broadcaster of the year” by animation professionals at the 2012 Cartoon Forum. July 2012 Lagardère Active acquires LeGuide.com, Europe’s market leader in shopping guides. October 2012 Launch by Lagardère Unlimited Live Entertainment of the musical Salut les copains at Les Folies Bergère in Paris. 10% October 2012-February 2013 Publication by JC Lattès, a subsidiary of Lagardère Publishing, of the Fifty Shades trilogy by E L James. December 2012 Lagardère Active acquires ticketing website BilletReduc.com, French market leader in discounted tickets.
SPAIN
September 2012 Acquisition by SGEL, a subsidiary of LS distribution, of Celeritas, a specialist in e-commerce and logistics. 3%
UNITED STATES/FRANCE/UNITED KINGDOM
September 2012 Little, Brown Book Group (United Kingdom), Little, Brown and Company (United States) and Grasset (France), three subsidiaries of Lagardère Publishing, publish The Casual Vacancy by J.K. Rowling, France author of the Harry Potter books. Western Europe
Eastern Europe
United States and Canada
UNITED STATES Asia-Pacifi c
Other countries January 2013 Acquisition by LS distribution North America of Crossings, importer and distributor of French fi ne foods to the United States. Countries in which the Lagardère group operates June 2012 Hachette Book Group launches Redhook, Orbit’s new commercial Breakdown of 2012 net sales by geographic area fi ction publishing subsidiary.
14 . Lagardère / 2012-2013 Milestones UNITED KINGDOM ITALY INDIA/RUSSIA
March 2012 September 2012 November 2012 Octopus Publishing, a subsidiary LS travel retail acquires AdR Retail Lagardère Unlimited Stadium of Hachette UK, acquires and becomes operator of eight duty Solutions, a specialist in consulting children’s non-fi ction publisher free and duty paid stores at Rome’s services for the management and Ticktock Entertainment. airports (Fiumicino and Ciampino). operation of multi-functional stadiums and arenas, signs contracts in India and Russia.
INDIA
October 2012 LS travel reta il signs a strategic partnership agreement in India with Travel Food Services, India’s market leader in Food & Beverage Services.
ASIA
February/October 2012 Launch of a bimonthly edition of Elle in China (published under licence by Hearst Magazines China) and Elle Decoration in the Philippines (with Summit Media).
36% 32% JAPAN January-December 2012 12% The “Crochet” series published by the Partworks division of Lagardère Publishing, sold more than 3.5 million copies in 2012. March 2012 World Sport Group renews its distribution contract for the media 7% rights to the Japanese football league (J. League) for a further year.
MALAYSIA
January 2013 As the result of a partnership between Lagardère Active Entreprises and LS travel retail ASPAC, a future Elle Café outlet is announced for the new KLIA2 terminal at Kuala Lumpur airport.
AUSTRALIA
AUSTRALIA/ September 2012 NEW-ZEALAND Lagardère Unlimited acquires SOUTH AFRICA Sports Marketing and Management, August 2012 an Australian sports marketing agency specialising in Olympic sports. January-February 2013 LS travel retail ASPAC acquires Sportfi ve Africa is the exclusive agency Duty Free Stores Wellington Ltd and for marketing and media rights for the becomes operator of 16 duty free Orange Africa Cup of Nations, SOUTH stores at Australian and New Zealand www.lagardere.com AFRICA 2013. airports.
15 . Lagardère / 2012-2013 Milestones . KEY SHAREHOLDER . WORLDWIDE HUMAN SUSTAINABLE GOVERNANCE DATA PRESENCE RESOURCES DEVELOPMENT
PEOPLE ARE A KEY CONCERN FOR ALL OF THE GROUP’S BUSINESS LINES. IN 2012, ITS EFFORTS FOCUSED ON MANAGING TALENTED STAFF, ATTRACTIVENESS, THE NEW CODE OF CONDUCT AND, LIKE EVERY YEAR, DIVERSITY. HUMAN RESOURCES
Priorities in 2012
The Group and all of its brands disabled people. Furthermore, in conjunction with the benefi t from a high level of non-profit organisation Nos quartiers ont des talents spontaneous attractiveness (Our neighbourhoods have talent), Lagardère took part in coaching workshops and increased the number of For a number of years, communications initiatives mentorships by employees, thereby helping young targeted at students and new graduates have been people from inner cities to access the job market. launched in order to strengthen the Lagardère group’s image as an employer, capitalising on all of its business A new Code of Conduct lines and brand names. Notably, Lagardère is a partner A new version of the Lagardère group’s Code of of the Challenge du monde des grandes écoles et Conduct was published in 2012. This is the result of universitiés (Wo rld Academic Sports Challenge), which involves more than 5,000 young future graduates unprecedented collaboration between the various each year. business lines, entities and cultural identities that make up the Group. It took more than one year of working Diversity: we say “equal together to be able to put together this reference framework, which constitutes one of the fundamental opportunities” aspects of Lagardère’s Corporate Social Responsibility In 2012, the Group endeavoured to promote cross- (CSR) policy. functional initiatives to support the integration of
Strengthening the Lagardère group’s image as an employer by capitalising on all of its business lines and brands
A new dynamic in managing talented staff In 2012, the Lagardère group redefined its principles and policies for managing talented staff across the Group, on the basis of procedures that have been in place for a number of years. This policy will enable the Group to build on all of the initiatives taken in terms of training, development and fostering talented people within the Group. Particular emphasis has been placed on proposing succession plans for all key jobs at Lagardère.
www.lagardere.com
16 . Lagardère / 2012-2013 Milestones 2012 KEY FIGURES
4,325 1,508 871 54% employees recruited interns students on work-study of managers on permanent contracts taken on programmes are women
22,541 permanent employees
57% of permanent employees work outside France
229,271 27.7% hours Increase of training in internal mobility
talented young people More than and managers took part in a Media Campus* 200 programme
*Internal training scheme to support talented staff and managers in their career development. KEY SHAREHOLDER ..WORLDWIDE HUMAN SUSTAINABLE J.L. LAGARDÈRE DATA PRESENCE RESOURCES DEVELOPMENT FOUNDATION
THE LAGARDÈRE GROUP MUST INCORPORATE SUSTAINABLE DEVELOPMENT INTO THE PRODUCTION PROCESSES OF ITS VARIOUS BUSINESSES AND INTO THE DAY-TO-DAY ACTIVITIES OF ITS SUBSIDIARIES, ASSUME THE RESPONSIBILITIES THAT RELATE SPECIFICALLY TO LAGARDÈRE’S MEDIA ACTIVITIES, IN WHICH DIGITAL TECHNOLOGY IS LEADING TO FUNDAMENTAL CHANGE, AND INNOVATE TO MEET THE EXPECTATION OF STAKEHOLDERS. SUSTAINABLE DEVELOPMENT
The Lagardère group commitments
To meet these objectives, Lagardère’s CSR (Corporate Social Responsibility) strategy has four priorities: • being a responsible employer; • developing the business while respecting the environment; • promoting access to information and knowledge; • being a media group that fosters social cohesion.
For each of these four priorities, Lagardère has made commitments that it is pursuing as part of a continuous improvement approach.
Using CSR as a tool to help the Group adjust to developments in society Workforce-related commitments
These refl ect the Lagardère group’s desire to create a dynamic, attractive working environment that empowers, motivates and encourages creativity among its staff: • ensuring workforce balance and diversity; • promoting harmonious working conditions; • encouraging the development of skills.
Social commitments
These commitments relate to the responsibilities that arise specifi cally from Lagardère’s media activities: • defending information pluralism and ensuring content diversity; • facilitating access to content and listening to various audiences; • supporting the digital transformation of society; • encouraging dialogue about sustainable development; • making a commitment to promoting culture and sport; • taking a community-based approach and promoting the emergence of young talent.
Environmental commitments
These refl ect the issues and challenges involved in the Group’s various business activities: • preserving natural resources, particularly those used to make paper; • promoting energy effi ciency and helping to adjust to climate change; • fostering employee commitment to environmental issues.
Within each division, the sustainable development strategy is implemented by a sustainable development departmen t, which works closely with the Executive Committee. At Group level, the Sustainable Development Department – reporting to Thierry Funck-Brentano, Co-Managing Partner of Lagardère SCA – co-ordinates a steering committee in which several Group-wide departments are represented (Human Resources, Communications, Purchasing, Legal and Financial).
In 2013, Lagardère will seek to use CSR as a tool to help it adjust to developments in society. KEY SHAREHOLDER ..WORLDWIDE HUMAN SUSTAINABLE J.L. LAGARDÈRE DATA PRESENCE RESOURCES DEVELOPMENT FOUNDATION
Six initiatives that were started or continued in 2012-2013
MICHAËL JEREMIASZ Special adviser to the Group Human Resources Department DISABILITIES: raising employee awareness
This project to carry out a disability review of the Group’s divisions was very appealing to me. I had very constructive discussions with HR departments and various disabled employees. We met people who want to create a simpler and fairer way for disabled people to fi nd work. The priority was to carry out various staff awareness-raising initiatives. The Group could consider better ways to share best practice in order to guide, support and develop our relationships with the main institutions, for example by setting up a Group disability initiative. Of course, the initial focus is on directly employing disabled people, for example through work placements, work-study programmes, assisted contracts and France’s “jobs for the future” programme. We also want to increase use of the protected sector, such as through “support-through- work organisations” (ESATs) and socially-responsible purchasing, when buying various services. There is limited awareness of these services, which are therefore underused.
www.lagardere.com
20 . Lagardère / 2012-2013 Milestones SARAH BAILEY LAURENT GUIMIER Associate Director, Director Communications, of Digital News, Hachette Book Group Lagardère Active WRITE YOUR OWN SOCIAL NETWORKS: FUTURE: journalists’ role a video promoting diversity in guiding the public
Hachette Book Group (HBG) initially got involved with The emergence of social networks has totally changed the “It Gets Better” project in order to support all young the journalist’s role in the public sphere. LGBT(1) people in the USA who experience a sense of Upstream, the conversations that citizens have with malaise. The project also provided an opportunity for public fi gures on social networks provide a fertile new us to convey HBG’s openness to all forms of diversity, source of material, which Lab Europe 1 seeks to exploit. strengthen our reputation as the best place to work Downstream, readers, listeners and Internet users are and establish our credentials with younger generations constantly commenting on the work done by journalists attracted by the world of publishing, which is known for on social networks. This dialogue is now an integral part its open-mindedness. of the journalist’s work. From start to finish, the project was run by employees In the age of the Internet and rolling news, people are themselves. At the very first meeting, when we chose faced with a mass of information every day, and much the theme of the Write Your Own Future video, some of it is contradictory. As a result, the journalist needs to 50 employees with different professional backgrounds, guide the public. ages and levels of seniority volunteered either to speak We are seeing digital innovations not every year, but on camera or to assist with the technical aspects every month. At a time when people, companies and of producing the video. When it was completed, we public bodies are rapidly making use of these new tools, arranged screenings at our main offices in New York, Europe 1’s Des clics et des claques programme has Boston, Nashville, Toronto and Indianapolis. It was a covered news relating to the Internet and social media highly emotional occasion. since 2011.
(1)Lesbian, Gay, Bisexual, Transgender.
www.hachettebookgroup.com http://lelab.europe1.fr
21 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER www.aelia.com warehouse an environmentally-friendly AELIA: Paris-Charles-de-Gaulle airport. airport. Paris-Charles-de-Gaulle 2012 to 12 on close December opened which warehouse, ofthis operation and construction to design, the approach to aresponsible take wanted Aelia outset, the From DATA .. WORLDWIDE PRESENCE Supply Chain Manager, Aelia SOPHIE BOASSON 22 . Lagardère /2012-2013 Milestones RESOURCES HUMAN (1)See defi nition ofBREEAMonpage24thisdocument. has BREEAM warehouse the aresult, As effectively. it publicising then and standard arecognised byadopting efforts its for recognition obtain should Aelia that we realised decisions, our However, wemade itself. as in objective an not was building the for certification Obtaining • • • • • The main measures involved: within the building. building. the within conditions working to improve and emissions, noise site’s the to limit specialist acoustics an for arranging airport; to the deliveries to make vehicles electric providing waste;sorting system; water hot the in use for rainwater recovering and selecting insulation materials, installing solar panels, consumption; energy reducing DEVEL (1) SUSTAINABLE certification. OPMENT J.L. LAGARDÈRE FOUNDATION
CONSTANCE BENQUÉ FRANCK PEYRE CEO, Deputy Director of the Group Lagardère Publicité Real Estate Department LAGARDÈRE FOLIES BERGÈRE: PUBLICITÉ: improved sound protecting the personal data and heat insulation of Internet users
In the second half of the 19th century, the Folies Bergère building was a bed linen shop. The IAB(1) Europe framework for online behavioural It was therefore not designed as an entertainment advertising, which we have signed, governs the use venue. In addition, it is surrounded by residential of targeted advertisements, which are often regarded buildings, which causes noise problems. Based as intrusive by consumers who do not know how on identifi ed sources of sound leakage, we improved they come to appear on their screens. It gives online sound insulation through work on the roof and in all consumers a way of stopping this practice. passageways (corridors, doors etc.). We are one of 170 signatories, and the fi rst French To reduce energy loss, we also carried out media group to make a full commitment alongside renovation work, mainly on the building’s roof and IAB Europe on this subject. Digital technology entails façades. Double glazing has been installed, and new responsibilities with respect to the public and the roof has been replaced. It is now made of zinc, Internet users. It is our responsibility to give Internet as it was originally. The main façade has also been users more control over the way in which their restored, and is now identical to how it was in the personal data are collected, used, stored and shared 1920s, and insulation has been improved in terms by websites and online media sales companies. of both heat and sound. Finally, some of the The pan-European portal www.youronlinechoices.eu electrical and plumbing systems have been replaced, lies at the heart of the system. The website is and presence detectors have been installed. available in several languages and gives users a tool for managing their personal data.
(1)Interactive Advertising Bu reau.
www.lagardere-pub.com www.lagardere-unlimited.com
23 . Lagardère / 2012-2013 Milestones KEY SHAREHOLDER ..WORLDWIDE HUMAN SUSTAINABLE J.L. LAGARDÈRE DATA PRESENCE RESOURCES DEVELOPMENT FOUNDATION
Key words
Building Research Oscar Establishment Environmental Corporate philanthropy Oscar awarded by Admical Assessment Method (BREEAM) (French association for the promotion of corporate philanthropy) to the Elle Foundation in November 2012. Environmental certification standard selected for Aelia’s new warehouse, to obtain recognition of all measures taken to limit the project’s environmental impact. Gold Award Award won by LS travel retail in August 2012 for the Indice écologique des environmental performance of its stores in Hong Kong magazines (magazine airport. environmental index) Name of the tool for assessing the environmental Reporters Sans Frontières (RSF) impact of magazines, resulting from work done by the Charity benefiting from sales of the 100 photos pour la sustainable development committee of the Syndicat liberté de la presse photobook, which Relay stores sold des éditeurs de la presse magazine (French magazine for the tenth consecutive year in 2012, with all proceeds publishers’ union), to which Lagardère Active made a going to RSF. major contribution. Alter’Actions Write Your Own Future New social partnership initiative adopted by Lagardère Name of the video produced by Hachette Book Group to help students taking CSR courses including to combat discrimination, as part of the US project to assignments in the charity sector. support young gay people entitled “It Gets Better”. BAT’LIB® Diversité Active Name of the service involving Matra electric scooters, Name of one of Lagardère Active’s 22 transformation lithium batteries and self-service charging stations. projects, intended to embed diversity more deeply into all of the division’s activities.
Book carbon footprinting tool Tool for measuring the carbon footprint of books, used by Hachette UK’s production teams.
24 . Lagardère / 2012-2013 Milestones 2012 KEY FIGURES
448 580 4,500 tonnes of CO equivalent Number of Lapker employees, 2 Number of books out of a total of 560, receiving available as part of a health check-up offered Emissions generated by the Hachette Livre’s by the company as part fi lming of eight episodes of print-on-demand service of its illness prevention the TV series Jo, following in France at end-2012 efforts in Hungary efforts to reduce the carbon footprint of the shoot 80% 219 Number of grants awarded by the Jean-Luc Lagardère Foundation Percentage of advertising between 1990 and 2012 inserts supplied by advertisers to Lagardère Active made from recycled or certifi ed paper 7,680 Number of tennis balls collected by the French tennis federation at the La Croix Catelan site, to be used in making sports surfaces at the Robert-Debré children’s hospital in Paris €80,387 Amount collected by Aelia stores in France, Spain and the UK as part of the “Time for Action” anti-hunger campaign, organised in partnership with Action contre la Faim 860 Number of hours of programmes with an anti-obesity message broadcast by Lagardère Active’s youth channels (Gulli, Canal J and TiJi) over four years
Area of beach in Montpellier cleaned following Gulli’s campaign in support of the Surfrider 2 Foundation Europe charity, after 6,142 people 30,170 m attended Gulli’s 2012 Earth Day event WORLDWIDE ..HUMAN SUSTAINABLE J.L. LAGARDÈRE CULTIVATING PRESENCE RESOURCES DEVELOPMENT FOUNDATION INNOVATION
SINCE 1989, THE JEAN-LUC LAGARDÈRE FOUNDATION HAS DEVELOPED A NUMBER OF PROGRAMMES TO HELP YOUNG PEOPLE: FOR THE CREATIVE, BY AWARDING GRANTS EACH YEAR; FOR THOSE IN SUFFERING, BY LAUNCHING PROGRAMMES TO HELP SICK CHILDREN; AND FOR THOSE WHO ARE LEARNING, BY SUPPORTING INITIATIVES IN THE FIELDS OF CULTURE AND SPORT. PROGRAMMES SUPPORTED BY THE FOUNDATION
Helping children young writer who is a citizen of and lives in one of the countries of the Arab League, the founder countries In 2012, the Jean-Luc Lagardère Foundation gave its of the IMA. support to the Les Amis de Mikhy association, which Since 2010, the Foundation has supported supports projects to help with the physical or emotional Studio 13/16 at the Centre Pompidou, devoted suffering of children with cancer. to promoting the practice of the arts among The Foundation also partnered the “Multisports dream: adolescents aged 13 to 16. It also partners the Musica target London 2012” campaign, spearheaded by the festival and the Divertimento Symphony Orchestra. 1 Maillot Pour la Vie association, which enabled sick young people to enjoy the Olympic Games. A springboard for young champions Promoting culture Thanks primarily to the support of the As a partner of the Institut du Monde Arabe (IMA), Jean-Luc Lagardère Foundation, Sciences Po the Foundation supported the overhaul of the IMA’s is able to offer a training programme targeted at permanent museum, which was opened in February high-level sportsmen and women to allow them 2012. In addition, the Foundation and the IMA plan to obtain a cultural foundation and pursue a career to launch a literary prize in 2013 to be awarded to a path with a view to reconverting their skills.
The Elle Foundation wins an award In November 2012, the Elle Foundation was awarded a prize for corporate sponsorship by the Association pour le Développement du Mécénat Industriel et Commercial (French association for the development of industrial and commercial philanthropy). The prize is awarded in recognition of the Foundation’s efforts. Since it was created in 2004, the Foundation has funded around 50 different innovative projects helping thousands of women in 22 countries.
www.ellefondation.net
26 . Lagardère / 2012-2013 Milestones FOCUS
The 23rd annual grant awards
At the Centre Pompidou on 29 January 2013, the Jean-Luc Lagardère Foundation awarded its 2012 grants to 14 talented young people. This brings the total number of grants awarded since 1990 to 219.
The grants awarded by the Photographer, Film Producer and Jean-Luc Lagardère Foundation TV Screenwriter. support young people working in The grant winners are chosen by the fi elds of culture and media prestigious juries who are experts presenting an original and in their respective fi elds and help to innovative project in the following categories: Documentary promote France and its culture. In Filmmaker, Animation Filmmaker, addition to fi nancial support, these Digital Artist, Novelist, Press grants provide a real springboard Journalist, Bookseller, Musician, for the continuation of their careers.
more info at www.fondation-jeanluclagardere.com HUMAN ..SUSTAINABLE J.L. LAGARDÈRE CULTIVATING LAGARDÈRE RESOURCES DEVELOPMENT FOUNDATION INNOVATION PUBLISHING
INNOVATION IS ESSENTIAL TO THE LAGARDÈRE GROUP’S GROWTH CULTIVATING AND ITS ABILITY TO ADAPT IN ORDER TO DEVELOP ITS ACTIVITIES AND CREATE ADDED VALUE IN THE SECTORS IN WHICH IT OPERATES. TO THIS END, THE GROUP IS CONTINUALLY RENEWING ITSELF AND INNOVATION OFFERING INNOVATIVE SOLUTIONS TAILORED TO THE CHALLENGES OF TODAY. LAGARDÈRE’S FOUR DIVISIONS ONCE AGAIN DEMONSTRATED THEIR EXPERTISE IN 2012.
THIERRY FUNCKFUNCK-BRENTANO BRENT Co-Managing Partner, Lagardère SCA, KEN MICHAELS Chief Human Relations, President and Communications and Chief Operating Offi cer, Sustainable Development Offi cer Hachette Book Group
MOMENTUM DAD: IN INNOVATION Digital Asset Distribution supporting talented staff In the face of major changes to the global publishing market relating to the arrival of electronic books, As part of the new momentum given to the Lagardère Hachette Livre (France), Hachette UK (United Kingdom), group’s policy of managing talented staff, the Human Anaya (Spain) and Hachette Book Group (United States) Resources and the Corporate IT de partments are have together developed a standardised planning to develop an innovative initiative in 2013. and centralised digital platform to store and deliver Drawing on the model of study trips to Silicon Valley e-books to online retailers. This is the first system built organised over the last two years by Lagardère in collaboration across the globe by different entities Innovation, a fact-finding mission will be carried out in of Lagardère Publishing. India, which will be proposed to talented staff identified This new process (called DAD for Digital Asset in advance by the human resources departments of the Distribution) allows Lagardère Publishing to distribute Group’s four divisions. The study will focus on learning authors’ works globally without border or language about the local culture and the organisation of innovation constraints. in India, and will explore the growth potential of markets This has become a highly strategic project as it gives us close to our business lines in the country. control of our digital distribution in all countries and allows At the end of the trip, the participants will compile a report us to maintain a direct relationship with e-book vendors accompanied by recommendations, and a presentation rather than going through third party providers. to the heads of Human Resources and the Managing Partners will be organised. This project will help to create momentum around innovation while also strengthening the feeling of belonging to the Group.
www.lagardere.com www.hachette.com
28 . Lagardère / 2012-2013 Milestones PIERRE-YVES POLICELLA Head of digital JEAN LEROUX applications, Chief Information Offi cer , Lagardère Active Aelia
FOTO+: AELIA: a futuristic tool for editorial teams an innovative payment service
Lagardère Active, in partnership with Microsoft and Peak hours at the sales outlets managed by Aelia, Sensorit, has developed a collaborative and easy-to-use synonymous with waiting and stress for travellers, are one tool for photo formatting using a touch-screen table. of the main challenges we face. In partnership with other Our application, named Foto+, makes it possible for retailers (Sephora, Norauto, Yves Rocher), members of the different departments of an editorial team to work the YourCegid Retail user club, we have developed a collaboratively and view, organise, touch up and share mobile payment service that allows sales staff to take photos. It also allows for images to be annotated in order payments from customers themselves using a PDA-type to give instructions to graphic designers and provide device that can be held in one hand. guidance for art directors. This new system helps to improve queue management The ability to view the edited photo and formatting and service standards, while also optimising net sales immediately optimises the formatting stage and avoids during peak hours. the need to manipulate photos physically by means such This innovative solution represents a major first in Travel as print-outs, cut-outs and montages, which uses up a Retail, which is subject to very strict requirements with significant amount of time and paper. regards to payment. It also strengthens Aelia’s image Foto+ is connected directly to the editorial team’s among airports relative to the standard of its customer IT system and allows for fully integrated use of photo relations and its expertise in technological solutions. streams in the production of print or digital versions of magazines.
www.lagardere.com www.aelia.com
In 2012, Lagardère Unlimited US continued to diversify its capabilities and concentrate its focus on offering brands fully integrated marketing solutions, with success among leading brands. We secured a partnership with Disney to develop an exclusive AL SILVESTRI Walmart mobile app surrounding the launch of the Cinderella Senior Vice President of Marketing & Blu-ray DVD. This launch was one of Disney’s most successful New Media Strategies, retail promotions to date. Lagardère Unlimited In partnership with Bumble Bee Foods and tennis player Mardy Fish, we developed a year-long content-driven campaign to tell a story perfectly aligned with the brand’s core messaging. LAGARDÈRE We are pushing the boundaries of creative marketing and leveraging our innovative approach to set ourselves apart and UNLIMITED US: become more relevant in the marketplace. Properly balancing offering brands fully integrated what brands truly want and what we have to sell is the key to delivering more value to clients while also maximizing net sales marketing solutions for Lagardère Unlimited.
www.lagardere-unlimited.com THE WORLD’S SECOND-LARGEST TRADE BOOK PUBLISHER FOR THE GENERAL PUBLIC AND EDUCATIONALAAL MARKEMARKETSTS (NUMBER ONE IN FRANCE, NUMBER TWO IN THE UNITED KINGDOMM AND SPAIN, NUMBER FIVE IN THE UNITEDTTED STATESSTATES),), LAGARDÈRE PUBLISHINGSSHING IS A FEDERATION OF PUBLISHINGUBLISHING COMPANIES WITH A LARGERGE DEGREEDEGREE OF EDITORIAL INDEPENDENCE.DDENCE. THEYTHEEY ARE UNITED BY COMMON MANAGEMENTMANAGEMMEENNT RULES, A CONCERTED EFFORTEFFORT TOT EXPAND IN DIGITAL ACTIVITIES,ACCTIVITIEESS, A COORDINATED STRATEGYGGY IN RESPECTREESPECT OF THE GLOBAL DISTRIBUTIONUUTION GGIANTS,IAANTTSS, AND THE SAME HIGH STANDARDSSSTANDARRDDS REQUIRED OF THE PEOPLELLE APPOINTEDAPPOOINNTEED TO POSITIONS OF RESPONSIBILITYPPONSIBILITTY IN EACH COMPANY.AANY.
30 . Lagardère / 2012-2013 Milestones Grasset
•••
across majormarkets and publishingthemsuccessfully Attracting themostrenownedauthors DEVELOPMENT SUSTAINABLE AND 2013 PRIORITIES 2012 OVERVIEW Of Chairman andChiefExecutive ARNAUD NOURRY PROFIT INCREASE IN 2012. PUBLISHING’SLAGARDÈRE BRAND LIVRE HACHETTE SAW BOTH NETSALES ANDOPERATING FOR IDENTIFYING INTERNATIONAL BESTSELLERS ANDADVANTAGEOUS EXCHANGE RATES, OF CHALLENGES. STRICT AFTER MANAGEMENT, ALEADING POSITION IN DIGITAL, AFLAIR COUNTRY TO COUNTRY, ANDTHERISE OF DIGITAL PUBLISHING IS BRINGING ANOTHER SET THE FORTUNES OF THEBOOK MARKETIN WITHSTANDING THEEC fi cer, Hachette Livre . J.L. LAGARDÈRE FOUNDATION 32 . Lagardère /2012-2013 Milestones books that could take over from from over take could that books however, to was fi or book the nd of2012, challenge main The court. of out settled was action The fi price as it interpreted which xing. Commission, European the and Department Justice States United the both from challenges legal faced then but policy, this adopted international publishing groups from online sales platforms. All pressure despite margins, our to protect order in United Kingdom the and States United the in prices to continue to control e-book retail 2012 in was challenges ofour One . CULTIVATING INNOVATION ONOMIC CRISIS VARY FROM FROM VARY CRISIS ONOMIC LAGARDÈRE PUBLISHING diversity and appetite for risk. for appetite and diversity characteristic its compromising without publications, of its investment on return the to optimise In 2013, Hachette Livre will continue division’s publishers. ofthe several with to work chose series, Potter Harry the wrote who Rowling, J.K. that markets major across successfully them publish and authors renowned most the to attract Livre’s ability of Hachette asign is It series. Twilight the and of2011 bestsellers international the LAGARDÈRE ACTIVE
FOCUS
Hachette Book Group, Publishing Innovator of the Year
At the 2012 Publishing Business Conference & Expo, Hachette Book Group (HBG) won the prize for Publishing Innovator of the Year, awarded by Publishing Executive and Book Business magazines.
To justify its decision, Book Group,” writes the magazine, “won Business cited HBG’s innovative the award in recognition of its solutions for eliminating moiré avant-garde approach in terms of patterns in digital readers, production, collection and analysis digital pre-formatting to speed of digital data.” Ralph Muns, up the sending of fi les to digital Chief Information Offi cer at HBG, platforms, the creation of a hub comments, “Our aim is to offer – Hachette Digital Platform – and consumers the best reading the adoption of a 100% digital experience possible.” editorial process. “Hachette Book
more info at www.hachettebookgroup.com SUSTAINABLE . J.L. LAGARDÈRE . CULTIVATING LAGARDÈRE LAGARDÈRE DEVELOPMENT FOUNDATION INNOVATION PUBLISHING ACTIVE 2012 KEY EVENTS
Some big hits in France Slowdown of the digital revolution in the United States For the third consecutive year since the end of the Twilight saga, the division’s performance in France The e-book segment continued to grow in the has been the strongest contributor to growth. United States, albeit at a gentler pace than in 2011. Two relative unknowns were remarkably successful Hachette Book Group (HBG) followed the same pattern with the book-buying public: Grégoire Delacourt, with as the trade book market, with e-books accounting La Liste de mes envies published by JC Lattès, and for 23% of net sales at year-end. Barbara Constantine with Et puis, Paulette… published The number of HBG’s releases listed among the New by Calmann-Lévy. It was not until the end of the year, York Times bestsellers rose by 17%, with 214 print however, that the most spectacular results were books and 71 e-books, which is a record for this achieved, on the release of J.K. Rowling’s Une place à division. Thirty print books and six e-books rose to prendre (The Casual Vacancy), published by Grasset, number one on this benchmark list, which featured and E L James’s Cinquante nuances de Grey (Fifty HBG works for a total of 1,330 weeks. Shades of Grey), published by JC Lattès. Hachette Livre also received a number of literary awards. ... Hachette Éducation and the publishing houses Didier and Hatier performed well despite the contraction of the textbooks segment. Travel guides and high-quality illustrated books were hit by the crisis, but Hachette Illustré posted good results. Larousse continued, successfully, to recast itself as a publisher of practical books and high-quality illustrated books without abandoning its leading position in reference works.
Truly spectacular results have been achieved with The Casual Vacancy by J.K. Rowling at Grasset, and Fifty Shades of Grey by E L James at JC Lattès
34 . Lagardère / 2012-2013 Milestones World’s nd LEADING 2 ranking POSITIONS publisher
No.1 textbook publisher in Spain
No.1 partworks issuer on the Japanese market
st No.1 1 book distributor publisher in the world to display on the French market the carbon footprint of each copy on books sold in France
2012 15 MARCH 14 JUNE Acquisition of Ticktock Entertainment, Hachette Book Group launches Redhook, a publisher of non-fiction for children, Orbit’s new popular fiction subsidiary. KEY DATES by Octopus Publishing, a subsidiary of Hachette UK. 17 OCTOBER 11 JANUARY 26 MARCH The first volume of Cinquante nuances de Hachette Livre’s Industrial and Commercial Grey (Fifty Shades of Grey), by E L James, activity releases its first digital comic strip in Hachette UK acquires the rights to the estate is published in France, with 100,000 copies France. of Enid Blyton, author of The Famous Five sold in five days. and The Secret Seven books.
23 FEBRUARY 2 MAY J.K. Rowling announces that she will publish her first adult novel with Little, Brown Book The first Hachette Livre books to carry a Group in the United Kingdom and Little, carbon label arrive in French bookshops. Brown and Company in the United States.
35 . Lagardère / 2012-2013 Milestones SUSTAINABLE . J.L. LAGARDÈRE . CULTIVATING LAGARDÈRE LAGARDÈRE DEVELOPMENT FOUNDATION INNOVATION PUBLISHING ACTIVE 2012 KEY EVENTS ... The United Kingdom holds fi rm Partworks withstand the crisis
Of a total of 122 Hachette UK books to reach the Generally considered to be more sensitive to authoritative Sunday Times bestseller list, 20 reached purchasing power fluctuations than books, partworks number one. Is It Just Me?, by Miranda Hart (Hodder enjoyed an excellent 2012 by posting positive net sales & Stoughton), held on at number one for eight weeks, growth. J.K. Rowling’s The Casual Vacancy (Little, Brown Book France, Italy and Russia all recorded very respectable Group) for ten weeks, and A Street Cat Named Bob results, but Japan and the United Kingdom saw (Hodder & Stoughton) for thirteen weeks. the most spectacular performances, defying the pundits with the Crochet series in Japan, which sold Spain struggles against the over 3.5 million copies, and the Marvel series in the United Kingdom, which sold 2 million. recession
Publishing was not spared the effects of the severe economic crisis in Spain. Despite the austere conditions, the Anaya group’s positioning in the Education segment tempered the effects of the recession, since most regional authorities have maintained their textbook orders. With a relative decline in net sales of 12% in Spain, this division decisively outperformed the market.
2012 was an excellent year for Partworks
The Famous Five in all its forms In March 2012, Hachette UK acquired the global rights across all media – including cinema and television – to the 800 books written by Enid Blyton, the well-known writer of The Famous Five and The Secret Seven, among others.
www.hachette.co.uk
36 . Lagardère / 2012-2013 Milestones UN NOUVEAU ROMAN POUR UNE NOUVELLE GENERATION
FOCUS
Hachette Livre,
enen vente the choice of J.K. Rowling lele 28 septembreseptembre
J.K. Rowling has selected Little, Brown Book Group (UK), Little, Brown and Company (US) and Grasset (France), three subsidiaries of Hachette Livre, to publish her fi rst novel for adults, The Casual Vacancy.
In an interview with UK newspaper So then I sort of vaguely mentioned The Guardian, the author stated: what I might have, without saying “I had a meeting with David Shelley*, it’s virtually fi nished. There was no who’s now my editor, without him auction. It was just a great way to knowing there was a book. So we fi nd an editor!” just had a conversation, and I could tell he was really on my wavelength.
*David Shelley is Publisher at Little, Brown Book Group.
more info at www.hachette.com SUSTAINABLE . J.L. LAGARDÈRE . CULTIVATING LAGARDÈRE LAGARDÈRE DEVELOPMENT FOUNDATION INNOVATION PUBLISHING ACTIVE
2012 Results 5 1 Breakdown of net sales by geographic area 4
1 France 32% 3 2 2 United Kingdom and Australia 20% 3 United States and Canada 23% 4 Spain 8% 5 Other countries 17%
7, 326 7,10 9
2,077 2,038 2012 Key fi gures
1 Net sales (€m) 223 221 146 2 Recurring operating profi t 130 before associates (€m)
3 Net cash from operating activities (€m)
4 Employees
2011 2012 1 2 3 4
38 . Lagardère / 2012-2013 Milestones 2012 KEY FIGURES
14,926 900,000 Number of new titles Number of copies of Cinquante nuances de Grey published in 2012 (Fifty Shades of Grey) sold in France (including e-books)
1,330 Total number of weeks Hachette Book Group titles were listed on the New York Times bestsellers
7,109 Number of employees
TITLES in the Enid Blyton estate were acquired 800 by Hachette UK LAAGGARDDÈRE ACTIIVE PLAYS A CENNTRAAL ROLE IN THE MEDIA WORLDD, WITH SUCH ICONIC BRANNDS AS ELLLE, PARIS MATTCH, EUROPE 1, GULLLI AND DOCTISSSIMO. IT IS THHE NUMBEER ONNE MAGAZZINE PUBLISHER IN FRAANCE,, WITH 39 FRENCH TITLLES AND 85 INNTERNATIIONAL TITLES SOLD UNDEER LICENCCE. LAGARDÈRE ACTIVVE IS ALSO A MAJOR PLAYEER IN TELEVISION AND RADIO, WITTH 21 RADIO STATIONS WORLDWIDEE, 11 TV CHAANNELS, AAND FRANCE’S NUMBEER ONE PRRODUCTION COMPPANY.. LAGARDÈÈRE PUBLICITTÉ IS FRRAANCEE’S THIRD ADVERTISING SALLEES BRROKERAGE, AND WITH 25 WEEBSITTES, LAGARDÈRE ACTIVVE IS THEE COUUNTRY’S LEADING MEDDIIA GRROOUP BY AUDIENCE ON THE INTERRNET AND MOBBILE MARKETTSS.
40 . Lagardère / 2012-2013 Milestones Informer, Rassurer, Partager
ttt
as akeymediaplayerinthedigitalage in 2013withaviewtoconsolidatingLagardère Active’s position Our transformation,whichisalreadywellunderway, willcontinue J.L. LAGARDÈRE FOUNDATION AND 2013 PRIORITIES 2012 OVERVIEW Of Chairman andChiefExecutive DENIS OLIVENNES CONSOLIDATE ITS POSITION IN THEAGE OF DIGITAL MEDIA. ACTIVE WILL PURSUEITS GROWTH STRATEGY ANDEXPAND ITS BUSINESS IN 2013 IN ORDER TO SUCCESS OF ITS LEADING BRANDS, SUCH ELLE, AS PARIS MATCH ANDEUROPE 1, LAGARDÈRE AND WEBSITES. ON THESTRENGTH OF ITS LEADERSHIP IN ITS DIFFERENT MARKETSANDTHE PRODUCTIVITY GAINS ANDDRIVE GROWTH FOR ITS PRESS TITLES, RADIO STATIONS, CHANNELS TV BROKERAGE –IN 2012, ACTIVE LAGARDÈRE LAUNCHED APROJECT DESIGNED TO SECURE TO ITS MAIN BUSINESSES –PRESS, AUDIOVISUAL, PUREDIGITAL ANDADVERTISING SALES REFOCUSINGAFTER ITS ACTIVITIES ON THEFRENCH MARKETANDADAPTING ITS STRUCTURE fi cer, Lagardère Active . CULTIVATING INNOVATION 42 . Lagardère /2012-2013 Milestones businesses, with Europe 1 Europe with businesses, our all affected also has renewal creative waveof This Newsstand. toApple the titles of 21 press introduction the and DailyElle, and Media Place ofLa launch the BilletReduc.com, and LeGuide.com of acquisition the year: the during goals these towards taken were business. Signifi cant steps brokerage sales advertising ofthe potential development the tapping and reduction including driving growth, cost priorities, several establishes Active) Lagardère (Reinventing Réinventer Lagardère Active transformation project in 2012. a launched Active Lagardère . LAGARDÈRE PUBLISHING
LAGARDÈRE ACTIVE streamlining the organisation. and innovation as such principles, guiding our byfollowing this achieve wewill and websites, and channels TV stations, radio titles, press ofits audience the increase now must division Our world. media the in player acentral as position Active’s Lagardère consolidating continue in 2013, and asserting will it underway, well Already Elle anew-look and supermarkets and hypermarkets, in sale on YouTube magazine and on channel TV Doctissimo new a schedule, anew adopting LAGARDÈRE . SERVICES
FOCUS
LeGuide.com, a leading pure-play operator in Europe
With the acquisition of LeGuide.com and BilletReduc.com in early 2013, Lagardère Active is continuing with its policy of building up a catalogue of pure-play companies that are market leaders in their respective segments, with Doctissimo.fr and Boursier.com.
LeGuide.com, Europe’s No. 1 rolled out its mobile strategy, network of online shopping guides, including in particular the launch of attracts 28.3 million unique visitors its application for Windows 8 and each month and brings together its mobile website (No. 1 in France more than 79,600 e-commerce with 1.8 million unique visitors). retailers, as well as 155 million To date, the company operates in offerings. Before becoming part of 14 European countries and is market Lagardère Active, LeGuide.com leader in France, Italy and Spain.
more info at www.leguide.com J.L. LAGARDÈRE . CULTIVATING LAGARDÈRE LAGARDÈRE LAGARDÈRE . FOUNDATION INNOVATION PUBLISHING ACTIVE SERVICES 2012 KEY EVENTS
Success in audiovisual, in line • Audiovisual Production: Lagardère Entertainment with 2011 is France’s number one audiovisual production group, with 1,152 hours of programmes and 203 million viewers in 2012 confi rming its leading Lagardère Active has confirmed its strategy and market position. These figures are supported by leading position in Radio, Television and Audiovisual classics such as C dans l’air, new programmes (Nos Production. chers voisins) and ambitious international projects, • Radio: almost 4.7 million people tuned into Europe 1 e.g., the second season of Borgia, and Jo, a new each day. The station’s podcasts are the most series starring Jean Reno. frequently downloaded in France. The quality and range of RFM’s music have pushed it to the number two spot on the radio market for Leading press titles its target audience, the 35-49 age group. Newly refocused on pop music, with a blend of classics and With a readership of 25 million, Lagardère Active is newcomers, Virgin Radio had 2.3 million listeners per France’s leading magazine publisher, and is cultivating day. its brands on the global market. It has always been able • Television: Lagardère Active has France’s biggest to reinvent itself: witness the makeover of Be, which Youth and Family offer, with the TV channels Gulli, now appears monthly and was the first media brand Canal J and TiJi. Gulli is the most popular free to launch its own social shopping site; the successful channel in its segment, with 35 million viewers every reinterpretation of Elle as a bi-monthly in China; month. It has a strong brand, which has successfully and the launch of Elle in Australia. Quality remains reached into digital, with over 6 million video views a fundamental to the press offering. In April 2012, at month on Gulli Replay, 600,000 downloads of its app, the tenth “Magazines of the year” awards, Elle and and the launch of its own tablet computer. ...Paris Match both received prizes.
Lagardère Active has con rmed its status as market leader in its Radio, Television and Audiovisual Production activities
44 . Lagardère / 2012-2013 Milestones No.1 LEADING magazine publisher in France (paid distribution POSITIONS in 2012)
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No.1 No.3 No.1 audiovisual production advertising sales brokerage media group on the Internet group in France in France in terms of gross sales and mobile in France
MAY AUGUST 2012 Launch of the first Elle Café at Ho Chi Minh Lagardère Publicité joins forces with Amaury City in Vietnam. Elle Décoration celebrates Médias, FigaroMedias and TF1 Publicité to its 25th anniversary with a 25th edition in launch La Place Media: the first pure play KEY DATES the Philippines. media market place in France.
30 JANUARY JUNE OCTOBER All-time audience high for C dans l’air, presented by Yves Calvi, with 2.16 million Gulli is voted “Best broadcaster of the year” Launch of the Doctissimo Play television viewers. by animation professionals at Forum Cartoon channel in partnership with YouTube. Gulli 2012. Replay sets new record of 8.7 million video views in a single month.
APRIL JULY Paris Match and Elle receive awards at the DECEMBER tenth “Magazines of the year” organised Acquisition of LeGuide.com, European by SPMI (Syndicat de la presse magazine). shopping site leader. Filming starts on Europe 1 was France’s most popular radio 21 titles launched on Apple’s Newsstand. Jo, the division’s first eco-production and station in terms of podcast downloads from Jean Reno’s first television series. January to December 2012. Public.fr is the digital number one in the women’s celebrity segment. 45 . Lagardère / 2012-2013 Milestones J.L. LAGARDÈRE . CULTIVATING LAGARDÈRE LAGARDÈRE LAGARDÈRE . FOUNDATION INNOVATION PUBLISHING ACTIVE SERVICES 2012 KEY EVENTS ... Digital: audience expansion The competitive, innovative offer of Lagardère Publicité Lagardère Active has continued to deploy its brands in all media, consolidating its position as leading media Lagardère Publicité is France’s third-ranking advertising group by audience on Internet and mobile in France. sales brokerage, selling advertising space in the press, The acquisitions of LeGuide.com, the top price radio, television, Internet, mobile and tablets. comparison site in Europe and, more recently, In August, Lagardère Publicité joined forces with BilletReduc.com, France’s leading online discount Amaury Médias, FigaroMedias and TF1 Publicité ticket seller, have given this division a new growth to launch La Place Media, an ad exchange platform driver and new forms of audience monetisation for its for the real-time auction sale of their qualified digital business model. audience in a premium brand environment.
Lagardère Active has continued to deploy its brands in all media
Europe Images International becomes Lagardère Entertainment Rights To reflect its desire to bring together its Distribution and Production activities, Lagardère Entertainment has changed the name of its distribution subsidiary, asserting its aim of developing its catalogue to include international programmes.
www.le-rights.com
46 . Lagardère / 2012-2013 Milestones FOCUS
RFM, 30 years old and ghting t!
2011-2012 was a record season for RFM, with the longest duration of listening to music radio, the sharpest increase in audience share for adult music radio and the No. 1 breakfast show in this category.
In September and October, the It also illustrates RFM’s ability to radio station reported its best develop a unique profi le, combining audience in fi ve years, attracting good humour – provided each 2,569,000 listeners each day. morning by Bruno Roblès, Sandra This excellent result refl ects the Lou and Pascal Gigot –, know-how of its teams and the spontaneity and high quality music relevance of its values. programming.
more info at www.rfm.fr J.L. LAGARDÈRE . CULTIVATING LAGARDÈRE LAGARDÈRE LAGARDÈRE . FOUNDATION INNOVATION PUBLISHING ACTIVE SERVICES
2012 Results 1
Breakdown of net sales by geographic area 2 1 France 88% 2 International 12%
7, 870
5,081 1,441 2012 Key fi gures
1,014 1 Net sales (€m)
2 Recurring operating profi t 95 before associates (€m) 64 16 3 Net cash from operating activities (€m)
(21) 4 Employees
2011 2012 1 2 4
3
48 . Lagardère / 2012-2013 Milestones 2012 KEY FIGURES
57% 43% 42% 23 of net sales of net sales of net sales generated million listeners per day, generated by generated by by Advertising with 21 radio stations Magazine Publishing Audiovisual Production in seven countries 39 press titles published in France and 85 worldwide 12 special-interest television channels worldwide 1,152 hours of audiovisual programming produced
Almost MILLION unique website visitors 20 per month in France LAGARDÈRE SERVICES IS A GLOOBAL LEAADER IN LOCAL DISSTRIBUTION AND TRRAVEL RETAIL, WITH OPERATTIONS IN 25 COUNTRRIES AND FOUR CONTINENTS, ORGANISED INTO TWO DIVVISIONS: • LS TRAVEL REETAIL, WHICH OPERAATES BUSSINESSES IN TRAVEL ARREAS, INCLUDING INNTERNATTIONAL BRANDS SUCH AS RELAY AND AEELIA DUTY FREE; • LS DDISISTRIIBUUTION, WHICH COVERS NAN TTIONAAL PRPRESESS DISSTTRIBUTION, CITY-CENTTRE RREETAAILERS AANND PRESS IMPORT-EEXXPORTT. yourfashionstore
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and diversi ed itsDistributionactivities Lagardère ServiceshassteppedupitsrateofacquisitionsinTravel Retail CULTIVATING INNOVATION AND 2013 PRIORITIES 2012 OVERVIEW DI Lagardère Services Executive Of Chairman andChief DAG RASMUSSEN SH LA LA HI H A A GGH VVE GGA GGA OOU E H RS -Q RDÈRE SERVICESCON KN RDÈRE SERVICESIS LD MS TEA TY UALI IFIE PAY . D DIST fi cer, OFF LAGARDÈRE , ESPE PUBLISHING RI BUTI , INNO CIAL ON 52 52 A LY TI VA OW CT NU IN IN TI IV . VE Lagardère /2012-2013 Milestones N EED performance, developing targets consolidation and growth its toreach aiming is activity the media, print in decline the its diversifi increased has distribution LS emerging countries. in growth organic intensifying and offering, commercial its expanding awareness, brand and effectiveness to increase order in positions its by consolidating efforts growth external its up 2012,In stepped retail travel LS I E IT N FO SPI Y. TERNAT TO BU TO R ITS SE . RIT RIT by improving operating operating byimproving IL AND ENTREP IONA D ON THESEASS LAGARDÈRE cation. Despite CT ACTIVE OR L TRAV AL L EA EL RETAI RENE DE RSHI S. I ETS. UR L IA P, AAN N L O AT 20 D THEINCR PE TITUDE LAGARDÈRE 13 RATI SERVICES , TH positioning. strategic our to strengthen place in put levels local and global the at fi and industrial on tie-ups nancial for the Distribution business hinge prospects The offering. product ofthe renewal ongoing the and partnerships bynew provided growth external Africa, and East Asia-Pacifi Middle the c region, the in growth 2013 on based is for outlook the TravelIn Retail, offering. B2B service a up building and services, and diversifi ed distribution businesses ON IS . DU AL H U L EEA AR EXCEL RI SI NG D WO NG 2 LY LY 01 LE RK 2, NC E, LAGARDÈRE
UNLIMITED
FOCUS
LS travel retail, at Rome airports
In July 2012, LS travel retail won the tender procedure launched by Aeroporti di Roma for the acquisition of AdR Retail, the company that operates the eight duty free stores (alcohol, tobacco, confectionary, perfumes and cosmetics) at Rome airports.
In keeping with its strategy of sales have already risen stepping up its rate of growth by by 1.1% relative to 2011, means of calls for tenders or despite a 7.0% fall in air traffi c. acquisitions, LS travel retail took 2013 will be a year of transition over operations at the Fiumicino with a full renovation programme and Chiampino terminals on and conversion of the various 1 October 2012. Since this date, stores to the new brand.
more info at www.lagardere-services.com CULTIVATING . LAGARDÈRE . LAGARDÈRE LAGARDÈRE LAGARDÈRE INNOVATION PUBLISHING ACTIVE SERVICES UNLIMITED 2012 KEY EVENTS
LS travel retail: retail services luxury and fashion. It has acquired the duty free activity for the travelling public of Rome airports, Duty Free Stores Wellington Ltd in Australia and New Zealand, and the fashion retail business at Geneva airport. The Lagardère Services activity LS travel retail aims to become the leading transport retailer and the preferred The partnership with Aéroports de Paris has led to partner for licensors on all market segments. significant investments in some terminals.
As one of the world’s leading operators in Travel Retail, New concessions were won in Reunion Island, Kuala Lagardère Services has the world’s largest international Lumpur and Xi’an. network of convenience stores and stores dedicated LS travel retail is also moving into food services to cultural leisure products. 2012 saw the winning or in travel areas, launching the Trib’s concept in renewal of a large number of concessions, including France and internationally, and the deployment Boutiques du Quotidien on the French rail network, of franchises, including Paul and Costa Coffee at the Eiffel Tower and airports in Nantes, Bordeaux, in the Czech Republic and Subway in Bulgaria. Dallas, Chicago, Boston, Edmonton, Xi’an, Singapore, LS travel retail has also acquired FEE in the Perth and Cairns. Czech Republic, and the German chain Coffee Fellows. New concepts were developed, including Hubiz, Several concessions were won in French hospitals and Tech2go and iStore, new product ranges were in airports in Bulgaria and Los Angeles. introduced, and the Redgroup chain in New Zealand and Jablonsky in the Czech Republic were upgraded. Lagardère Services is a major player in duty free, ...
LS travel retail operates more than 450 food sales outlets in nine countries worldwide
54 . Lagardère / 2012-2013 Milestones No.2 Travel Retail operator in LEADING the world, no. 1 in France, in POSITIONS Poland and in Czech Republic No.1 national press distributor in Belgium (AMP), French-speaking Switzerland (Naville), Spain (SGEL), Hungary (Lapker) and the United States (Curtis Circulation Company)
No.1 international press distributor in Belgium, Spain, Hungary, French-speaking Switzerland, Czech Republic and Canada Leading international chain of newsagents and convenience stores
2012 JUNE SEPTEMBER LS travel retail Deutschland wins the food LS travel retail acquires AdR Retail, the duty court concession at the central station in free activity of Aeroporti di Roma. KEY DATES Frankfurt. SGEL acquires Spanish company Celeritas, specialised in logistics and e-tailing. JANUARY JULY Acquisition of Unimex, with duty free and NOVEMBER Lagardère Services sells OLF, a book fashion activities at Prague’s Ruzyne airport. distributor in French-speaking Switzerland, LS travel retail ASPAC boosts operations to its managers. in Malaysia, reaching four department stores in Kuala Lumpur’s international airport. FEBRUARY AUGUST LS travel retail North America arrives in Jamaica at Montego Bay airport. LS travel retail ASPAC acquires Duty Free Stores Wellington Ltd, with operations in New Zealand and Australia.
55 . Lagardère / 2012-2013 Milestones CULTIVATING . LAGARDÈRE . LAGARDÈRE LAGARDÈRE LAGARDÈRE INNOVATION PUBLISHING ACTIVE SERVICES UNLIMITED 2012 KEY EVENTS ... LS distribution: focus on The activity boosted its services to e-tailers in each productivity and diversifi cation of its subsidiaries with the acquisitions of Celeritas in Spain and Sprinter in Hungary and sold OLF, a non- strategic book distribution business in French-speaking LS distribution continued to work on productivity and Switzerland. diversification in response to the decline in print media, and 2012 was particularly fast-moving. LS distribution continues to gain market share in its traditional business, both in Spain and in the United The development of non-press retail continued with States. the integration of Euro-Excellence in North America (import and distribution of fine chocolate and European fine foods) and the acquisition of a similar activity from Crossings in the United States. LS distribution also acquired the Hungarian retailer Deliterra.
To diversify its activities, LS distribution relies on the strength of its networks and local organisations
Relay.com The Relay.com digital newsagent website was overhauled in 2012. The new features include: • a new subscription charge with access to a range of 600 magazines; • automatic resizing of the website for smartphones, tablets and PCs; • a revised and faster user interface; • a dedicated iPad app for digital readers and content sharing.
www.relay.com
56 . Lagardère / 2012-2013 Milestones FOCUS
LS distribution, the promise of new services
Supplying newspaper and magazine sales outlets is key to press marketing. Lagardère Services provides this service in nine countries on two levels: national press distribution and international press import/export.
In response to the structural brand distribution and decline in the market, representation, consumer product Lagardère Services has diversifi ed distribution and new services – its traditional activities and now including digital services – such as offers services in the areas of money transfers with Western logistics (for e-commerce retailers), Union and telephony services.
more info at www.lagardere-services.com CULTIVATING . LAGARDÈRE . LAGARDÈRE LAGARDÈRE LAGARDÈRE INNOVATION PUBLISHING ACTIVE SERVICES UNLIMITED
2012 Results
Breakdown of net sales by geographic area
1 France 28% 7 8 1 6 2 Belgium 5 3 12% 2 3 Eastern Europe 20% 4 4 Spain 10% 5 Switzerland 11% 6 United States and Canada 6% 7 Asia and Australia 8% 8 Other countries 5%
10,454 3,809 10,187 3,724 2012 Key fi gures
1 Net sales (€m) 105 104 96 86 2 Recurring operating profi t before associates (€m)
3 Net cash from operating activities (€m)
4 Employees
2011 2012 1 2 3 4
58 . Lagardère / 2012-2013 Milestones 2012 KEY FIGURES
More than 56.3% 130 4,000 33% Travel Retail’s contribution Number of international stores in 25 countries Curtis Circulation to Lagardère Services’ airports where worldwide Company’s market share net sales LS travel retail operates in North America 1 billion LS travel retail’s net sales in duty free and luxury
Over 450 food service outlets in 9 countries 50,000 newsagents in Europe and 180,000 in North America supplied daily by LS distribution
RELAY 1,350 stores A LEADING PLAYER IN THE SPORT INDUSTRY AND ENTERTAINMENT, LAGARDÈRE UNLIMITED HAS EXPERTISE IN SIX COMPLEMENTARY BUSINESS ACTIVITIES: EVENTS PRODUCTION AND MANAGEMENT, TALENT REPRESENTATION, VVENUEENUE CONSULTING, MARKETINGNG RIGHTS AND ASSOCIATED PRODUCTS,ODUCTS, BROADCAST RIGHTS,S, AND MAMANAGEMENTNA OF SPORTSSPPORTS ACADEMIES.
60 . Lagardère / 2012-2013 Milestones ••• *
*30% owned by Lagardère Unlimited. LAGARDÈRE LAGARDÈRE LAGARDÈRE LAGARDÈRE CONTACTS AND
. . PUBLISHING ACTIVE SERVICES UNLIMITED PUBLICATIONS
AFTER REORGANISING ITS BUSINESS BY REGION IN 2011, LAGARDÈRE UNLIMITED CONTINUED TO DIVERSIFY IN 2012, MOVING ONTO NEW GROUND IN THE SPORT AND ENTERTAINMENT MARKETS. LAGARDÈRE UNLIMITED HAS A FIRM FOOTHOLD ON THESE ATTRACTIVE MARKETS, WITH OPERATIONS IN MANY DIFFERENT COUNTRIES, COVERAGE OF THE ENTIRE VALUE CHAIN, AND ACKNOWLEDGED EXPERTISE IN FOOTBALL (THE WORLD’S MOST POPULAR SPORT).
2012 OVERVIEW AND 2013 PRIORITIES
In 2013, Lagardère Unlimited intends to focus on commission-based businesses
In 2012, Lagardère Unlimited Amid very sluggish economic expanded its marketing conditions, the decision expertise, focusing on strategic was taken in 2012 to restrict support for brands and rights Lagardère Unlimited’s business holders, acquiring the Australian as premium media rights agency Sports Marketing and intermediary in Europe. Management (SMAM) and building ARNAUD LAGARDÈRE In 2013, the division intends to up its marketing teams in Europe Chief Executive Offi cer, focus on commission-based and the United States. Lagardère Unlimited businesses, such as support Lagardère Unlimited also developed for rights holders, sponsors and its venue consulting activity, and athletes, the development of the production and management of assets, especially events, and the events in these venues. expansion of its activities in growth regions such as South America, Africa, Asia and the Middle East.
62 . Lagardère / 2012-2013 Milestones FOCUS
Strategic acquisition in Olympic sports
With the acquisition of Australian agency Sports Marketing and Management (SMAM), Lagardère Unlimited has confi rmed its desire to develop its presence in Olympic sports.
SMAM works with international Group, will enable Lagardère sports federations and multi-sport Unlimited to benefi t from the events such as the Commonwealth networks and renowned experience Games on developing their of the agency, with has worked marketing and communications actively with international sporting strategies. This acquisition, federations for more than 25 years. spearheaded by World Sport
more info at www.lagardere-unlimited.com LAGARDÈRE . LAGARDÈRE . LAGARDÈRE LAGARDÈRE CONTACTS AND PUBLISHING ACTIVE SERVICES UNLIMITED PUBLICATIONS 2012 KEY EVENTS
Increased marketing activities A hit for Lagardère Unlimited and development of innovative Live Entertainment digital solutions In the wake of the success it encountered in 2012, Sportfive has become a marketing agent for German Lagardère Unlimited Live Entertainment’s new football clubs FC Carl Zeiss Jena and VfR Aalen, production, Salut les copains, will spend 2013 on a OGC Nice in France and FC Utrecht in the Netherlands. nationwide tour of France. The Lagardère Unlimited subsidiary also broke into new markets, including sailing, with skipper Winning new markets at Michel Desjoyeaux, and expanded its hospitality Lagardère Unlimited offering (Formula 1 Grand Prix, Gucci Masters, 2013 Stadium Solutions Champions League, and Paris Opera). The integration of Gaylord Sports Management Lagardère Unlimited Stadium Solutions has (renamed Lagardère Unlimited Arizona) in the United introduced its consultancy services on new States has helped consolidate marketing activities and markets: Russia (Spartak Moscow) and India develop the talent representation activity. (Trivandrum). It has also been involved in preparing for Lagardère Unlimited has also rounded out its offer of major events, such as the 2014 FEI World Equestrian innovative digital solutions, especially with the launch Games. of a loyalty programme management platform for European football clubs and specific consultancy and Distribution of broadcasting development missions for brands in the United States. rights in Europe, Africa and Asia
Lagardère Unlimited has also In 2012, Lagardère Unlimited sold the broadcasting rights to major events, including the Africa Cup of rounded out its offer of innovative Nations, qualifying matches for the 2014 FIFA World digital solutions Cup, the UAFA Arab Nations Cup and WTA and ATP tennis tournaments.
Organisation of three major new triathlons
Upsolut has been entrusted with the organisation of three new stages in the ITU World Triathlon Series. It will now manage the organisation of the events in S an Diego (alongside Lagardère Unlimited US), Stockholm (with IEC in Sports) and Auckland, in addition to its existing races in London and Hamburg.
64 . Lagardère / 2012-2013 Milestones No.1 LEADING on the African POSITIONS football market
Leader in Asian sports rights
2012 KEY FIGURES
Over Over Almost 500 30 1,200 72% sports and entertainment sports employees Net sales generated personalities represented represented by football
JULY OCTOBER
2012 Sportfive extends its activity to new sports Lagardère Unlimited Live Entertainment and signs a partnership with skipper launches its musical Salut les copains at the KEY DATES Michel Desjoyeaux. Folies Bergère in Paris.
SEPTEMBER NOVEMBER
Acquisition of Sports Marketing and Lagardère Unlimited Stadium Solutions signs Management (SMAM), an Australian sports consultancy contracts in Russia and India. marketing agency specialised in Olympic sports.
65 . Lagardère / 2012-2013 Milestones LAGARDÈRE . LAGARDÈRE . LAGARDÈRE LAGARDÈRE CONTACTS AND PUBLISHING ACTIVE SERVICES UNLIMITED PUBLICATIONS
2012 Results
Breakdown of net sales by geographic area
1 Germany 25% 6 1
2 United Kingdom 7% 5 4 3 2 3 France 11%
4 Rest of Europe (excluding Germany, France and 16% United Kingdom) 5 Asia 21% 6 Other countries 20%
1,174 1,110
470 2012 Key fi gures 454
102 1 Net sales (€m)
56 2 Recurring operating profi t before associates (€m)
3 Net cash from operating activities (€m)
4 Employees (6) (33) 2011 2012 1 2 3 4
66 . Lagardère / 2012-2013 Milestones FOCUS
The Orange Africa Cup of Nations goes digital
As part of its partnership with the Confederation of African Football, Sportfi ve has developed the fi rst offi cial application for the Orange Africa Cup of Nations, SOUTH AFRICA 2013.
By offering exclusive video content, and YouTube, to allow football fans the Orange Africa Cup of Nations, to enjoy each minute of the major SOUTH AFRICA 2013 mobile app African football tournament. The adds to the offering dedicated to app is available on App Store and the tournament on social media Google Play. sites such as Facebook, Twitter
more info at www.sportfi ve.com LAGARDÈRE . LAGARDÈRE ..LAGARDÈRE LAGARDÈRE CONTACTS AND PUBLISHING ACTIVE SERVICES UNLIMITED PUBLICATIONS CONTACTS
Head offi ce
Lagardère SCA 4 rue de Presbourg 75116 Paris Tel: +33 (0)1 40 69 16 00
Spokesperson
Ramzi Khiroun Spokesperson, Lagardère SCA Tel: +33 (0)1 40 69 16 33 Chief External Relations Offi cer E-mail : [email protected]
Investor Relations
Anthony Mellor Tel: +33 (0)1 40 69 18 02 Chief of Investor Relations E-mail : [email protected]
Re gistered shareholders
BNP Paribas Securities Services CTS - Lagardère Shareholder Relations Department Grands Moulin de Pantin 9 rue du Débarcadère 93761 Pantin Cedex France Tel: +33 (0)1 57 43 34 00
Photo credits: Barry Aldworth/Backpagepix 2013; Élie-Stéphane Azoulay/DPPI/Lagardère; Gilles Bassignac/Lagardère; William Beaucardet; Karolina Brunstraum; Canal+; Arnaud Carroué/Lagardère; Christophe Chevalin/TF1; Dahmane/Lagardère; Augustin Détienne; DR; Nicolas Droz; Fanny Duprés/Lagardère; Mike Ehrmann/Getty Images/AFP; Franck Faugère/DPPI; Deborah Feingold; Frédérik Froument/Lagardère; Philip Gay; Mike Grecco; Jacques Grison/Lagardère; Xavier Imbert; JJB-Admical; Stéphane Kempinaire/ KMSP/DPPI; Lagardère Services; Thierry Lewenberg-Sturm; Allan James Lipp/Backpagepix 2013; Philippe Millereau/DPPI; Philippe Millereau/KMSP/DPPI; Andrew Montgomery; Jérôme Prébois; Thierry Quenette; Chris Ricco/Backpagepix 2013; Wolfgang Reiher/Leo Seidel; Patrick Robert; Huma Rosentalski; Charlotte Schousboe; Thomas Schreyer/ Picture Alliance/DPPI; Michael Schwartz/ Hoch Zwei; Kirk Sides; Singapore Hub Consortium; Story Box Photo/Europe 1; Sugar, Pepper & Salt; Swedish Open; Sylvain Thomas/DPPI; Bertrand Vacarisas. Design: Sugar, Pepper & Salt Production: BRIEF © Lagardère - April 2013
68 . Lagardère / 2012-2013 Milestones PUBLICATIONS
MILESTONES REFERENCE 2012-2013 DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT TOUT EGYPTE NOUVEAU2 € VOILES SUR 2 € LES FILLES... ET SUR LA TÉLÉ
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These publications are also available in French.
more info at www.lagardere.com
69 . Lagardère / 2012-2013 Milestones www.lagardere.com
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