Investor relations

CHANGES IN ACCOUNTANCY STANDARDS

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The Media segment includes the operations of the Book Publishing, Print Media, Distribution Services and Lagardere Active divisions.
Significant changes in this segment’s structure during 2005 were as follows:

Book Publishing

• Full consolidation from 1 April 2006 of the newly acquired publishing group Time Warner Book Group comprising Time Warner Book Group Inc. in the United States and Time Life Entertainment Group Ltd in the United Kingdom.
• Full consolidation from 6 March 2006 of Philip Allan Updates, acquired by British publisher Hodder Headline.
• Sale and deconsolidation from 1 January 2006 of the French publisher Éditions Dalloz.

Distribution Services

• Full consolidation of HDS Retail Czech Republic, which was proportionately consolidated on a 50% basis in 2005.
• Full consolidation of HDS Hong Kong point-of-sale activities, which were only consolidated from 1 November in 2005.
• Sale and deconsolidation from 1 January 2006 of the German distributor Saarbach.

Full consolidation from 1 November 2005 of newly acquired businesses in the Asia-Pacific zone.

Lagardere Active

• Full consolidation from 1 March 2006 of four newly acquired radio stations in Russia.
• Application of the equity method since 1 October 2006 for the US Cellfi sh group comprising Lagardère Active’s mobile phone activities, which were previously fully consolidated.
  
  

The merger process initiated in early 2006 with Vivendi Universal and Canal+ Group culminated on 4 January 2007 in the acquisition by Lagardère Active of a 20% investment in Canal+ France, the new entity formed by the merger between CanalSatellite and TPS. This investment was undertaken through a contribution on 4 January 2007 of Lagardère’s 34% holding in CanalSatellite, preceded by the acquisition on 19 December 2006 of Canal+ France shares for the sum of €469 million. The 34% holding in CanalSatellite continues to be accounted for by the equity method in the fi nancial statements at 31 December 2006, and the shares in Canal+ France are recorded as unconsolidated investments. In 2007, the 20% investment in Canal+ France will be accounted for by the equity method.

EADS

Lagardère’s presence in the High Technology industry is represented by its interest in EADS, which is included in Lagardère’s consolidated fi nancial statements using the proportionate method of consolidation based on Lagardère’s percentage interest of 14.98% in 2006 and 14.95% in 2005.

On 10 April 2006, Lagardère SCA issued Mandatory Exchangeable Bonds redeemable in EADS shares concerning 7.5% of the capital of EADS. This will entail the transfer of 2.5% of the capital in each of the three years 2007, 2008 and 2009. Details of this operation are provided in note 2 to the consolidated fi nancial statements.

• Consult the document « Changes in accountancy standards » (xls - 62 kB)