About Lagardere

You announced a 10% increase in operating income, rising to €636 million, in 2007. What factors – other than performance – explain this growth?

This rise is a strong and symbolic signal to all of our stakeholders. Last year, every one of our businesses exceeded our projections.
Our Sports and Media divisions were real growth engines that generated high margins, the Publishing subsidiary turned in a solid performance and the print-media business recovered nicely.
This demonstrates once again that our group was able to maintain solid performance and create value despite the risks facing our industry in a world economy that has fallen into recession. I would also like to acknowledge the women and men of the Lagardère Group for making this success possible.

I completely changed the Lagardère Group over the past decade.
Before, we were a group of miscellaneous assets; now, we’re a well-organized group with four business divisions: publishing, distribution, sports, and print and audiovisual media, each of which occupies a leading position in the various media sectors.
Over the past 10 years, we have invested over €6.5 billion in the media, with the acquisition of part of Vivendi Publishing and Time Warner Book for approximately €2 billion, sports company Sportfive for €860 million, and a €1.5 billion interest in Canal+ France. We also spent some €200 million to acquire Internet companies.
At the same time, we sold non-strategic assets, as well as assets where we’re not a majority shareholder, for a total of about €2.5 billion.Because we’re a family company and have a “builder’s spirit”, we will continue to consolidate our core businesses, and we will focus in particular on exclusive rights, sporting events and select content.I will pursue Lagardère’s growth with the same confidence and tenacity that have led to an average 11.8% rise in operating income every year over the past decade.


The print and audiovisual media businesses merged last year, becoming Active. How is this new division faring?

With the convergence of our print, audiovisual and digital media and advertising-sales businesses, Lagardère Active was able to refocus on digital media and multimedia content.
Just one year after the merger took place, the results have exceeded our forecasts: in 2008, digital products will generate 5-10% of Lagardère Active’s overall sales – and we thought we would only be able to reach that level in 2009. In addition, by reducing the number of titles, the print-media segment is boosting its profitability. Lagardère Active is clearly coming up with comprehensive, creative solutions to new-media consumption.
Lastly, in early 2008 I decided to create Lagardère Entertainment as a subsidiary of Lagardère Active. The new company brings together our audiovisual production and distribution activities and will help us to develop fresh expertise in the fields of performing arts and talent and audiovisual-rights management.
For a long time, we did not invest in audiovisual production because we hadn’t decided whether we wanted to be a broadcaster or a producer; we have now decided on the latter option. Lagardère thus plans to take part in the consolidation trend and become a leader in audiovisual production.


Your Sport division distinguished itself in 2007, its first year in operation.

In 2007, Lagardère Sports achieved major acquisitions and agreements, making this division a benchmark player in the sports business.
Lagardère Sports is now the group’s most dynamic and profitable entity, with an operating margin of 15%. There are many sporting events and also various companies that can be acquired. For that reason, Lagardère Sports plans to continue diversifying over the next few years, with the goal of becoming the market leader. Sports and its values are part of my group’s DNA. More than ever we are – and will remain – committed to this high-growth sector.


Let’s move on to Publishing

Lagardère Publishing has made the group the second-leading publisher in the world and No. 1 in Europe. What does that mean for the Group? After acquiring Time Warner Book in 2006, Lagardère Publishing continued its active acquisition policy in 2007 in its traditional markets. Secondly, that policy has not stopped our geographical expansion strategy, especially in Latin America – quite the contrary.


In the sector that distributes leisure products and services, you are revising your approach. Could you describe your new strategy?

We plan to expand our retail business in travel locations at a faster pace.
Our growth projections in this market are very promising due to an expected rise in passenger traffic in coming years. We already have a major presence in the travel-retail segment, but we are going to expand operations in 2008, particularly in Eastern Europe, Asia and South America.


Lagardère is gradually reducing its stake in EeADSs. Does this mean that your group plans to withdraw completely?

In 2005, we decided to gradually sell half of Lagardère’s interest in EADS.
We currently hold a 12.51% stake in the company – that is the current reality of our shareholding in EADS, and a complete withdrawal is not on the table.
In addition, for the first time our accounts do not include EADS. I also feel that its share price is not where it should be, but there’s a good chance it will rebound. So selling our interest in EADS would not be in the best interest of our shareholders.


in conclusion, Mr Lagardère, is there anything you would like to add?

I can say with satisfaction that our efforts are intense and fascinating
every day. In the very nature of our work, we are contributing to the fulfilment of men and women by providing them with information and entertainment.
And through the Jean-Luc Lagardère Foundation, especially via TeamLagardère and Lagardère Paris Racing, we are fighting for France’s influence in the fields of sports and culture.I will continue to increase and strengthen these commitments over the coming years.