INVESTOR DAY PARIS FEBRUARY 2, 2004

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INVESTOR DAY PARIS

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OUTLINE OF THE PRESENTATION

Ô 1 . Introduction Brigitte Gauthier-Darcet

Ô 2 . Audiovisual Brigitte Gauthier-Darcet

n 2.1 Production / Distribution n 2.2 Theme Channels

Ô 3 . Radio Brigitte Gauthier-Darcet

Ô 4. Complementarity of Music Media Christophe Sabot

Ô 5 . New Media Fabrice Sergent

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Net Sales 2002

1 . INTRODUCTION : Presentation of Lagardere Active

Ô A media group focusing on 5 strategic and complementary areas

n Producer and distributor of TV programs

n Publisher of theme channels

n Radio operator in France and 7 other countries n Publisher of multimedia services

n Multimedia advertising rep

Ô With a clear management approach

n Combine growth with tight management

n Attract talents and promote creation

n Secure short-term profitability without undermining the long term

Multimedia Prod. Distrib. 17,3% Theme Channels 12,7% New Medias 18,8%

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2 . 1 . Production / Distribution: Presentation of the Businesses

Ô 10 stock production companies :

n GMT Productions (Napoléon, Julie Lescaut, Boulevard du Palais,…) n DEMD Productions (Nestor Burma, Joséphine Ange Gardien,…,

Le Bleu de l’Océan, 2003 summer serial on TF1)

n …

168 hours

produced in 2002 (revenue

57 M

€

) drama, documentaries, animation

all of them re-usable rights enriching our library

Ô 7 one-off production companies :

n JLR Productions (20h10 Pétantes with Stéphane Bern for Canal +) n MAXIMAL Productions (C dans l’air for France 5)

n B3COM (created by Benjamin Castaldi)

680

hours produced in 2002 (revenue

25 M

€

)

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2 . 1 . Production / Distribution: Business Model – Key Elements

Ô These companies address the entire market :

n The 6 French terrestrial TV channels (TF1, France 2, France 3, France 5, M6, Canal +) n And some theme channels (Equidia, Match TV,...)

Ô Our library : 13 000 hours mainly fictions, documentaries, animation Ô Although the instant audience measurement

n Has no direct impact on the financing of the related production, n It is a key factor for the broadcasting channel’s advertising revenue

n It helps building up broadcaster loyalty and is a key element of long term business

growth

Ô One of our skills is the know-how over financing big international co-productions,

involving the main developed countries (in Europe, Canada and the United States), and using all existing aids such as tax shelters and tax credits.

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2 . 1 . Production / Distribution: Competitive Position

Ô No. 1 producer of fiction, 23% market share in France

No. 2 approximately twice smaller

Ô No. 3 producer of one-off programs to be on air in 2003 (No. 5 in 2002) Ô 30 of the most successful 100 audiences in 2003 (14 in 2002)

29 of the 60 most successful audiences for fiction

Ô Awards from French and international juries

n 7 nominations for Emmy Awards in September 2003,

n 5 awards at the “16ème Nuit des 7 d’Or” ceremony in November 2003.

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2 . 1 . Production / Distribution: SWOT Analysis

Ô Strengths Depth and variety of top talents

High quality programs

Good business profitability, due to tight management

Ô Weaknesses Still insufficient presence in animations and gameshows

Ô Opportunities Changes in regulations (access to TV advertising for the

previously prohibited sectors,…)

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2 . 1 . Production / Distribution: Growth Prospects

Ô Consolidate the Group’s pre-eminence in fiction Ô Strengthen production of one-off programs

n By a policy aimed at finding young talents n Through the search for innovative formats

n By acquiring companies producing one-off programs in the gameshow

field

Ô Become a leading distributor in Europe through the acquisition of

existing catalogs

Be the

leading program supplier

for French terrestrial TV

for both fiction and one-off programs.

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2 . 2 . Theme Channels: Presentation of the Business

Ô Properties: 9 channels broadcast mainly in Europe in 4 editorial categories

n Music: MCM, MCM TOP, MCM POP, MCM 100% Belge, MEZZO n Children: Canal J, TiJi

n Daily life: La Chaîne Météo n People : Match TV

n 27.4% share in multiThématiques (publisher of Planète, Ciné-cinémas, Jimmy, etc.)

Ô Distributors: cable and satellite operators (CanalSatellite, TPS, Noos, etc.) Ô Key figures: over 5 M cable and satellite subscribers

nearly 28 M subscribers to our channels, incl. 10 M abroad

Ô Net revenue : 80% fees (from distribution platforms)

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2 . 2 . Theme Channels: Competitive Position

Ô Children area

Canal J

n No. 2 theme channel, all theme channels viewers combined

n No. 1 children channel for 4-10 and 4-14 age group (7,9 %), all theme channels

viewers combined

TiJi

n No. 2 children channel for 4-10 age group (7,3 %), all theme channels viewers

combined

Canal J + TiJi combined enjoy a 42,9 % market share (4-14 age group)

on children channels

Ô Music area

MCM

n No. 1 theme channel for 15-24 age group n No. 1 music channel for 4 + age group

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2 . 2 . Theme Channels: SWOT Analysis

Ô Strengths Strong presence on key sectors for advertisers (children, music)

Complementarity of TV music channels and radio stations Increasing number of subscribers to CanalSatellite

Ô Weaknesses Dependence on the distributor

Not backed by a terrestrial TV channel

Ô Opportunities Opportunities for acquisition (trend towards market concentration)

New distribution technologies : digital terrestrial TV, ADSL, etc.

Ô Threats Sharpening competition from other theme channels (Piwi, M6

Music, etc.)

and from terrestrial channels (development of Star Academy type of formats, etc.)

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2 . 2 . Theme Channels: Growth Prospects

Ô Growth potential :

n Access to TV advertising for previously prohibited sectors

reserved until 2007 for cable and satellite channels

n Convergence between advertising market share (5%) / audience share (11%)

n Constant growth of audience share : from 7% in 2000 to 11% in 2003

Ô Spin off new channels from successful ones (Canal Jà TiJi) Ô Opportunities to acquire one or more channels in order to :

n Enhance the product range in selected areas such as

l “children”, “music” and “daily life”

n Promote the international growth of MCM

Become an unavoidable package provider

for all pay channel distributors

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Audiovisual Summary

Over a 8 year period, Lagardere Active has collected :

Ô Strategic assets:

n Talents: producers, anchors, channel executives n Products, brands, catalogs

n Audiences

Ô A range of know-hows:

n Creator of programming

n Distributor

n Producer for theme channels

n Broadcaster of themes channels

n Advertising airtime rep

Constituting an independent entity,

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3 . Radio: Presentation of the Business

Ô 3 national radio stations in France:

n A general-interest News & Talk format

n A music “generation motor” for 15-34 age group

n A contemporary music station for 25-49 age group

In a very competitive French radio environment (15 private national broadcasters)

Ô 16 stations abroad, in 7 countries (Eastern Europe, Germany and South Africa):

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3 . Radio: Business Model – Key Elements

Ô 85% of net revenue from advertising à a very cyclical business

Most costs are fixed (schedule, broadcast, promotion)

n More than half of the costs are constituted by payroll charges

n Program generally set for the broadcast season (from september to june)

n Cost of dual broadcasting (LW/FM) for Europe 1

Ô Unbalanced distribution of frequencies throughout France :

n Europe 1 186 frequencies 51.6 M coverage on LW+FM

n Europe 2 199 frequencies 39.5 M coverage on FM

n RFM 162 frequencies 34.4 M coverage on FM

Representing total potential coverage of 125.5 M < threshold of 150 M Note: NRJ 257 frequencies, France Inter 621 frequencies

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3 . Radio: Competitive Position

Ô Very competitive environment in a context frozen by regulations

n 3 main private players: Lagardere Active, NRJ, RTL

n 3 small ones : Skyrock, RMC Info, Radio Classique, competing for growth n A 7th player, on the audience market only: the state-owned stations

Ô Market share (source: Médiamétrie – Nov. / Dec. 2003): no. listeners/d.

n Cumulative audience 9.9% for Europe 1 4,909,000

6.7% for Europe 2 3,314,000 4.4% for RFM 2,193,000

n A total of more than 10 million listeners every day

Ô Internationally: No. 1 radio operator in Poland, Czech Republic, Romania,

No. 2 in Russia, No. 4 in Hungary

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3 . Radio: SWOT Analysis

Ô Strengths Programming expertise

Complementary formats reaching every age group

Abroad: strong Group positions in a balanced portfolio of countries

Ô Weaknesses Insufficient coverage of the country by our stations Ô Opportunities Changes in regulation (categories, threshold, …)

Satellite radio broadcasting (XM in the United States)

Abroad: opportunity for consolidation (values at cyclical low point)

Ô Threats Open access from 2007 to sectors (especially retail)

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3 . Radio: Growth Prospects

Ô Continue to improve coverage, by obtaining new frequencies

Ô Internationally, consolidate our positions in countries where we are

already present, while studying the possibility of investing in new countries

Ô Develop the complementarity of media between music radio and

n Music TV channels

n Downloading

n Spin-offs

n Interactivity

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4 . Complementarity of Media

A Unique Radio Landscape

Ô The French radio landscape today:

n A peculiar French situation that is not found in any other country n 15 different national music and/or news stations

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4 . Complementarity of Media

Segmentation of Content

Ô Radio is a business sector that is not exempt from the basic rules of

marketing:

Create desire,

be unique,

and make it known.

Ô Our every day policy:

n Respect for the genetic codes of the brand

n Respect for our promise concerning our products

n Regularity in the production of our programs

n Evolution, never revolution, in our offer of programs.

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4 . Complementarity of Media

Segmentation of Content (continued)

Ô To survive and grow in the face of the combined offering of music and

entertainment (mornings and evening talk shows) presented by our competitors:

n Be segmented

n Be different

n Be capable of inducing a feeling of “ownership”

“making it theirs”

Ô Europe 2 and RFM, two music stations

n Positioned in the cycle of the discovery and consumption of music n Trend-setters on their own market segment

Ô Exploit our brands more intensely

n So that they become labels

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4 . Complementarity of Media

Music Radio and Interactivity

Ô An intense listener/radio station relationship through the “participatory

links” that arise from conventional resources, such as:

n Fixed wire and mobile phones,

n Text messaging,

n Email,

n The communities that we have developed on our Web sites.

Ô Make progress in the commercial use of databases identifying our

consumers (useful for downloading as well as for music searches), while emphasizing:

n The marketing of our games lines,

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4 . Complementarity of Media

Music Radio and Spin-offs

Ô Strong identifiable brands that are already producing lines of derivative

products: CDs and DVDs

Ô with Europe 2 “un maxx’ de bruit”

the “un maxx’ de frisson” collection

Ô with RFM “le meilleur du cinéma” or “night fever”

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4 . Complementarity of Media

Music Radio and Downloading

Ô The commercial market for music downloads has no choice but to organize itself. Ô We will be a media player in this process through the development of Virgin Méga.

Music Radio and Concerts

Ô The market for organizing concerts is changing particularly quickly.

Ô In this situation, our radio stations could rapidly develop a “concert branch”:

1st example: Europe 2 Live,

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4 .Complementarity of Media

Music Radio and Music TV Channels

Downloading, Concerts,

Derivative products, Interactivity,

Are applied on the MCM channels in the same way as in the FM business,

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5. New Media : Presentation of the Business

LAGARDERE ACTIVE BROADBAND Nouveaux médias

Mobile

Minority shareholder :

Lifestyle

Chat/Dating Pictures Music

Content Syndication

Scope of presentation : Géography :

Main services and brands :

rev.2002: Approx. m109 E

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5 . New Media : Focus on mobile (1)

Ô Mobile device accelerate paying content services penetration !

logos Single ton ringtones Bingo SMS Fin 2002 2003 2004 Voice mail greetings Tele-greetings Greeting cards Colored pictures Polyphonic ringtones Premium SMS Real tones Java Games MMS Animated pictures Java applets Karaoke MP3 downloads Jeux Java 2.0 video clip Live dating

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Notes

• Numbers include airtime revenue for operators

• Projections for 2005 in line with recent publications from Jupiter Research and W2F

247 241 233 203 170 94 85 85 87 108 131 191 332 326 320 312 301 285 0 50 100 150 200 250 300 350 400 2001 2002 2003 2004 2005 2006 Internet Enabled Not Internet Enabled

Western European Mobile Subscribers

MM

Source Morgan Stanley Equity Research

26 27 27 27 27 28 9 7 6 5 4 3 35 34 33 32 31 31 0 10 20 30 40 2001 2002 2003 2004 2005 2006 Voice Data

Western European Mobile ARPU

€/Month 18 12 3 1 12 2 32 15 0 5 10 15 20 25 30 35 40 2002 2005 P2P Browsing Premium

Western European Mobile Data Market(1)

€ Bn

28% CAGR

1.8 1.0 0.0 0.5 1.0 1.5 2.0 2002 2005

Western European Market for Ringtones/Logos(2)

€ Bn

23% CAGR

5 . New Media : Mobile Data Market Europe vs USA

Note

• Numbers include airtime revenue for operators

140 113 83 47 13 0 42 61 81 106 128 128 183 174 164 153 141 128 0 50 100 150 200 2001 2002 2003 2004 2005 2006 2.5/3G Phones No 2.5/3G US Mobile Subscribers MM

47 49 51 52 53 53 5 3 2 2 1 1 52 52 53 53 54 54 20 30 40 50 60 2001 2002 2003 2004 2005 2006 Voice Data US Mobile ARPU $/Month 2.5 0.6 1.5 0.4 2.8 0.6 6.8 1.5 0 1 2 3 4 5 6 7 8 2002 2005 P2P Browsing Premium

US Mobile Data Market(1)

$ Bn

66% CAGR

403 17 0 100 200 300 400 500 2002 2005

US Market for Ringtones

$ MM

187% CAGR

Source IDC, May 2003

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STATISTICS BILLING

WAP Imode Java BREW

MOBILE OPERATORS CONNECTIVITY

FRONT OFFICES

COMMUNITIES

COMMUNITIES CONTENTCONTENT

5 . Business Models

Magazines

Wap

2) Marketing expertise :

- mobile operators distribution - advertising on print, TV, radio 1) Technical expertise

àSUBSCRIBERS

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5. New Media : Competitive Position

International

Hosting

Publishing

Prosodie

Jamba

Newtech

ADT

AGL

123 MM

Itouch

Computel

ATS

Broadsystem

Match.com

InfoSpace

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Ô New growing and profitable markets

Ô Good match with other Group’s assets : Virgin, magazines…

Ô Global markets, centralized technology, R&D and hosting

Ô New technologies fosters operators’ growth as well :

UMTS…

Ô Increase of space/ copyrights costs

Ô Fast sector consolidation Ô Need of fast critical mass reach

Ô Internal mobile expertise

Ô Operating practice on the audiotex markets since 1994

Ô Operating presence in 4 key countries

Ô Track record in mass market advertising since Club-Internet Ô Direct access to privileged data on music industry (Virgin,

MCM, Europe2) and image/pictures businesses (Gamma, Paris Match)

Ô Brand ownership and promotion capacity

Ô No mobile carrier’s ownership

Ô No large TV station ownership

Ô No music / movie majors’ ownership within the Group

Ô Threats Ô Opportunities

Ô Strengths

Ô Weaknesses

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5 . New Media : Growth Prospects (2) / Conclusion

Ô Existing brands, products, expertise and technologies with local

presence in 4 countries.

Ô Fast growing market overall, with

l Late US growth

l Opportunity to consolidate existing businesses in Europe

Ô … Strong opportunity to strengthen and extend our leading positions

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Lagardere Active

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6. Lagardere Active Publicité

The French advertising market

Ô 8.6 Billion Euros invested in the French media market in 2003

National TV 29,0% Cable TV 1,5% Radio 7,4% National Daily Press 15,3% Other press 17,1% Outdoor Advertising 11,3% Cinema 0,8% Internet 0,7% (+) (+) (+) (+)

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Since 1999, Lagardere Active Publicité has experienced a steady rise of its market share.

6. Lagardere Active Publicité’s markets

The audiovisual sales company of the Lagardere Group is positionned on both an « historical » market and two « emerging » markets.

Ô1 « historical » advertising market :

n Radio with a national and local commercialisation

Ô 2 « emerging » advertising markets with high growth potential:

n television thematical channels n internet sites

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Ô Radio

On a highly concentrated market (3 major players : LAP, IP, NRJ)

Lagardere Active Publicité owns very strong brands and is present on every level.

n A historical leading role (2nd commercial radio, commercial

coverage share) with an innovative format : News & Talk.

n A musical network composed of and reinforced by the

commercialisation of , leading offer ahead of NRJ.

n A presence on every market with strong positions :

l on the national market with a leading position in terms of audience (34% of

commercial coverage share),

l on local markets, a challenger position

Between 1998 and 2003, on the national market : Turnover +54% while the

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Ô Televison :

n Large commercial portfolio (26 cable TV and 5 local or regional TV) composed

of television channels edited by the group and channels owned by other groups (primarly AB group) which makes LAP the leading sales rep with 30% coverage share.

n Leading channels targetting the most interesting people : children with Canal J

and TiJi, the 15-34 with the MCM+ offer, the Housewives-50 with RTL 9.

Ô Web sites :

n A specific positionning : only sales rep which commercialises a portal

(Club-Internet) and strong internet brands (Europe1.fr, Europe2.fr, le Routard.com,etc.)

n A systematic approach of prolonging our TV and Radio actions on our

websites (cross-media)

Between 2001 and 2003 : Turnover +32% for a market up 6% (estimate)

Between 2001 and 2003 : Turnover +20% for a market down 10% (estimate)

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6. Lagardere Active Publicité

Market conditions

Ô Clients’ media strategies are becoming more and more complex

(search of opportunities, simultaneous work on different targets, etc…)

Ô Investments based on more and more quantitative criteria ;

the effective audience ; with a more and more accurate expertise of the Media agencies (buying agency).

Ô Clients expect increased expertise in terms of service :

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A performing back office allowing optimisation of revenues & profits

6. Lagardere Active Publicité’s strengths

Ô Owned by a major media company

Ô Powerful media brands with very strong added value which can be

sold as a global media : cross-media

Ô A dynamic team with very ambitious objectives :

n more turnover and market share

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6. Lagardere Active Publicité

The French advertising market

Ô In 2002, companies have invested 29,3 Billion euros for their communication

in France which represents a small increase (+0.6%) after the strong increases until 2000 (up to +8%) and the steadiness of 2001.

Ô 2% of the national GDP is devoted each year to above-the-line and

below-the-line media (direct marketing, promotion,etc).

Ô The French advertising market makes up for 4% of the international

advertising market and 20% of the european advertising market.

Ô The French media have a great growth opportunity since France ranks

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1998 1999 2000 2001 2002 2003 Mkt share₂₀₀₃ Var 2003 vs ₁₉₉₈ Var 2003 vs ₂₀₀₁ press 3 499 3 861 4 150 3 987 3 866 3 789 44% 8% -5% télévision 2 473 2 684 3 046 2 867 2 921 3 038 35% 23% 6% outdoor 1 026 1 089 1 174 1 129 1 085 1 031 12% 0% -9% radio 575 645 716 654 713 749 9% 30% 14% cinema 52 69 82 72 74 67 1% 28% -7% total 7 626 8 348 9 086 8 709 8 659 8 673 100% 14% 0% Millions of euros

6. Lagardere Active Publicité

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6. Lagardere Active Publicité

Sectorial breakdown of the brutto radio turnover

Distribution 24% Telecom 16% Services 10% Culture and leisure 8% Publishing 8% Media 8% Transport 8% Food 6% Tourism 4% Other 8%

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6. Lagardere Active Publicité

Ranking of commercial stations

12 ,1 8 ,1 6 ,9 5 ,4 5 ,2 4 ,1 3 ,8 3 ,5 3 ,4 2 ,6 2 ,5 1 ,8 1 ,1 0 ,8 RTL EUROPE 1 NRJ

NOSTALGIE SKYROCKCHERIE FM EUROPE 2