Couv dos8,5mm Angl 26/04/04 15:56 Page 1 Télévision Française 1 ANNUAL REPORT 2003 A public limited company “Société Anonyme” with a share capital of €43,030,830 326 300 159 RCS Nanterre TF1 1, quai du Point du Jour 92656 Boulogne Cedex / France Tel. : (33) 1 41 41 12 34 Internet : http://www.tf1.fr Couv dos8,5mm Angl 26/04/04 15:56 Page 2 Postal and e-mail addresses Profil First French Channel of main subsidiaries and participations 3 out of 4 French people watch TF1 every day 1, quai du Point du Jour 145, quai de Stalingrad 92656 BOULOGNE-BILLANCOURT CEDEX – FRANCE 92137 ISSY-LES-MOULINEAUX CEDEX – FRANCE 95 out of the 100 best programs in 2003 TF1 PUBLICITE (www.tf1pub.fr) TELEVISION PAR SATELLITE – TPS (www.tps.fr) TF1 PUBLICITE PRODUCTION (www.tf1.fr / tpp) TPS CINEMA TPS JEUNESSE 20 thematic channels, of which Eurosport, LCI, TF6 TF1 FILMS PRODUCTION TPS ENTREPRISES TPS MOTIVATION TF1 DIGITAL TPS GESTION TPS TERMINAUX and TPS Star ALMA PRODUCTION TPS SPORT TPS INTERACTIF TFM DISTRIBUTION TPS FOOT TPS SERVICES A presence in 54 countries via Eurosport TF1 PRODUCTION TPS STAR MULTIVISION YAGAN PRODUCTIONS TPS CINEFAZ MULTIVISION GESTION CIBY 2000 TPS CINETOILE SENT More than 15 million cassettes/DVD distributed TFOU 3, rue Gaston et René Caudron in 2003 305, avenue le Jour se Lève 92448 ISSY-LES-MOULINEAUX CEDEX – FRANCE 92656 BOULOGNE-BILLANCOURT CEDEX – FRANCE EUROSPORT (www.eurosport.com) e-TF1 EUROSALES About 20 French movies coproduced every year TF1 ENTREPRISES (www.tf1licences.com) EUROSPORT France SOCIETE D’EXPLOITATION ET DE DOCUMENTAIRES 120, avenue Charles de Gaulle ODYSSEE (www.odyssee.com) First French generalist channel, TF1 is although a built-in group of communication that 92200 NEUILLY-SUR-SEINE – FRANCE COMPAGNIE INTERNATIONALE DE COMMUNICATION – CIC develops, around its core business, activities in growth markets. TF6 (www.tf6.fr) CIBY DA Since 1987, date of the privatization and the entry of Bouygues in the shareholding SERIE CLUB (www.serieclub.fr) structure, the TF1 channel has created new activities with strong added value, from its 9, rue Maurice Mallet Quai Péristyle – 56100 LORIENT – FRANCE business of programs producer and broadcaster. 92130 ISSY-LES-MOULINEAUX – FRANCE TV BREIZH (www.tvbreizh.fr) Today, TF1 group activities cover the whole audiovisual industry: upstream in UNE MUSIQUE (www.tf1.fr/unemusique) production, acquisition and sale of audiovisual rights, downstream in publishing and TF1 VIDEO (www.tf1video.fr) 3, rue du Commandant Rivière – 75008 PARIS – FRANCE distribution of cassettes, DVD and music CD, derivative products linked to TCM DA broadcasting (telematic services, derivative rights, games, contents and Internet web 18, quai du Point du Jour site) and the home shopping. 92656 BOULOGNE-BILLANCOURT CEDEX – FRANCE Chemin du Dévent – 8 Victoria House TF1 INTERNATIONAL 1024 ECUBLENS – SUISSE VISIOWAVE (www.visiowave.fr) 105, avenue Raymond Poincaré 75116 PARIS – FRANCE Tour Maine Montparnasse – 33, avenue du Maine GROUPE GLEM 75015 PARIS – FRANCE LES NOUVELLES EDITIONS TF1 30-32, rue Proud’hon 93210 LA PLAINE SAINT DENIS – FRANCE 10, rue des Gardinoux – 93300 AUBERVILLIERS – FRANCE STUDIOS 107 SYLVER TELESHOPPING (www.teleshopping.fr) 26, rue Danton – 92300 LEVALLOIS-PERRET – FRANCE TOUT AUDIOVISUEL PRODUCTION – TAP TELEMA 54, avenue de la Voie-Lactée 47, rue de la Chapelle – 75018 PARIS – FRANCE 92656 BOULOGNE-BILLANCOURT CEDEX – FRANCE QUAI SUD TELEVISION LA CHAINE INFO – LCI (www.lci.fr) TF1 expands as well in the pay TV market, with the TPS satellite platform and 7, esplanade Henri de France – 75015 PARIS – France thematic channels that are today major components of the cable and satellite offer in GIE FREQUENCES France. 44, rue de Strasbourg – 44000 NANTES – France OUEST INFO 35, rue Greneta – 75002 Paris – France METRO Design & production: L’Agence Synelog - 41, rue Greneta - 75002 Paris – Photos: Getty Images, DR, TF1, Eurosport, Paramount Pictures, Twentieth Century Fox, TPS, Warner Bros, Téléma, Miramax Film Corp., Studio 107, TF1 International, Focus Features, Mars Distribution, © 2000 StudioCanal, X. TF1 P1/12ANGLAIS 26/04/04 16:07 Page 1 Annual Report 2003 CHAIRMAN’S STATEMENT 02 PRINCIPAL DIRECTORS 04 GROUP ORGANISATION 05 KEY FIGURES 06 KEY EVENTS 08 SECTOR ANALYSIS 10 GROUP ACTIVITY 12 BROADCASTING 14 ADVERTISING 18 THEMATIC CHANNELS 20 TPS 24 PUBLISHING / DISTRIBUTION – INTERACTIVE DIVISION 28 PRODUCTION AND AUDIOVISUAL RIGHTS 30 TF1, A NON-TRADING COMPANY 32 GROUP HISTORY 35 FINANCIAL REPORT 36 TF1 P1/12ANGLAIS 26/04/04 16:07 Page 2 Annual Report 2003 Chairman’s Statement activities by creating a “TV production” arm and by restructuring and streamlining our cinema division. This will enable us to be more efficient and more profitable by leveraging all the synergies among Patrick LE LAY, Chairman & Chief Executive Officer the different components of the Group and, like the major international players in the media sector, by offering better service to resources necessary for financing an After the launch of new and our customers and partners – attractive programming grid, making attractive subscription offerings, producers or rights owners. investments that will bring future TPS L was introduced in December In conclusion, we are optimistic growth and achieving profits that will in Lyon, bringing to fruition several about 2004. The difficulties we have enable us to distribute substantial and years of research and development encountered during the past two regular dividends to shareholders. in the distribution of audiovisual years have made us stronger. Dear Shareholders, content over high-speed telephone The thematic channels are a decisive They have nudged us into improving, lines (ADSL). TPS L will be deployed growth vector. All our offerings are streamlining and re-engineering in the Paris region in first half 2004 extending their distribution in France our processes and structures as and in most major French cities in In the course of 2003, the TF1 channel After improving the financial situation, TPS pursued its strategy of and, on occasion, abroad. The we pursue the growth and the following quarters. This will benefited from a modest rebound of TF1 Digital, the TF1’s thematic strengthening its cinema, sports and opening up of the thematic channels diversification of TF1 Group. In view open up a new market of some eight the French advertising market, despite channels holding company (excluding youth offering. This enabled it to to sectors that were heretofore of the signs of economic recovery million urban households that until a first quarter hit by the lead-up to the Eurosport ), increased its stake in TV launch innovative commercial banned from advertising – the press, that we perceive in France and now had no access to TPS. Iraqi conflict and then its outbreak. Breizh and now holds more than half offerings in September. For TPS, 2003 book publishing and mass retailing – As a result, our strategic choices across Europe, we estimate that the Starting in April, a certain recovery the capital. In addition, TF6 was very was also the year of the TPS L launch, should contribute to improving their have been sound and we are group’s consolidated revenue could set in and continued through the close to operating break-even in 2003 in partnership with France Télécom, financial situation. confident in the future of TPS, which grow 4% to 5%. The TF1 channel’s summer. The channel then after only three years’ existence. with the aim of offering its In this sector, 2004 will be marked by will be profitable in 2004 (excluding advertising revenue could rise 3% to experienced another unsettled period programmes over a simple telephone Eurosport has improved its audiences several major operations: ADSL). 5% thanks to the improved economic with regard to revenues, lasting until and margins and renewed its major line. With TPS and TPS L, all French " the February launch of the free-to- outlook and the partial opening up to TF1 Group aims to pursue its growth December and marked by high distribution contracts, assuring its households will be able to receive the air Italian general-interest sports sectors that were previously banned in distribution in France and Europe. volatility and lack of visibility. Since long-term presence on all the major TPS offering. From a financial point of channel, Sportitalia, operated by from TV advertising. The TF1 In Digital Terrestrial Television, TF1 then the situation has improved, view, TPS has met all its commitments Eurosport out of Milan. This offering channel programming costs are European markets. Furthermore, has linked up with Mr. Tarak Ben though it continues to be unsteady. by reimbursing part of its debt and complements those of major Italian expected to increase between 4% Eurosport participated in the launch Ammar and Prima TV, operates a On the other hand, TF1 made the reporting positive operating income. television groups as well as that of and 5%. of a general-interest sports channel in network of digital terrestrial most of favourable financial market Eurosport itself, which is today Italy, SportItalia, which began As you can see, in 2003, your frequencies since February 2004 and Diversification activities, at constant conditions in November to diversify broadcast in large parts of Italy; broadcasting in February 2004 and company was consistent in applying is consequently commercial consolidation scope, have as " broadcasting LCI in Italy; its sources of financing by issuing a seems set for a brilliant future. the strategy laid out several years operator of a digital terrestrial their objective to be profitable in € " the project to create an 500 million bond, maturing at the e-TF1 continued to grow, reduced its ago. We enter 2004 in the same television multiplex. 2004, and the TPS satellite business end of 2010. international news channel in losses and, with a view to expanding spirit to endow each group division should achieve break-even partnership with the public service; As concerns diversification activities, is commercial offering and with the best business outlook.