0 FIRST-HALF RESULTS

2013 FIRST-HALF RESULTS Guidance maintained for 2013 recurring Media EBIT(1)

Strong increase in recurring Media EBIT

Net sales: 3,406 million, stable on a like-for-like basis(2)

Growth in recurring Media EBIT: 138 million, up 23%

Net income attributable to the Group: 1,483 million

A stronger financial situation

A sharp decline in net debt to 900 million, primarily due to the disposal of EADS stake

Very strong liquidity position ( 2,272 million in available cash(3))

Press release

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The Lagard re group proved during the first half of 2013 its resilience in challenging conditions.

A strong performance in General Literature, TV Production and Travel Retail allowed to offset the economic difficulties in Europe and the negative trend in printed products in Press and Distribution. At 3,406 million net sales grew ( 0.5%) on a reported basis, and were stable on a like-for-like basis.

Recurring Media EBIT increased by 23%, up 26 million, at 138 million.

- Lagard re Publishing recorded a 14 million increase, while profitability improved by 1.4 point on the back of a very strong performance in General Literature.

- Lagard re Active posted a slight 2 million increase, bolstered by the contribution of new digital activities and tight cost control.

- Lagard re Services: despite the strong performance in Travel Retail on the Duty Free & Luxury and Food Services segments as well as in emerging countries the division posted a declining EBIT (- 8 million) due to a higher than expected decrease in printed products at LS distribution. Travel Retail represents now 59% of total activity.

- Lagard re Unlimited recorded a positive and increasing ( 18 million) EBIT due to a favorable basis for comparison arising from the 22 million provision for risk related to the IOC contract(4) in the first half of 2012. Excluding this item, the variation of recurring EBIT reflects mainly an adverse calendar effect.

Net income attributable to the Group amounted to 1,483 million. This includes in particular the profit on the disposal of EADS.

Adjusted net income(5) rose slightly, to 33 million.

Net debt fell sharply, to 900 million, primarily as a result of proceeds received on the disposal of EADS.

I- GROUP NET SALES AND BUSINESS ACTIVITY Lagard re SCAs net sales in the first half of 2013 amounted to 3,406 million - an increase on a reported basis ( 0.5%) and stable in like-for-like terms.

Net sales ( m)

Reported change

2013/2012

Like-for-like

change

2013/2012

H1 2012

H1 2013

LAGARD RE 3,389 3,406 0.5% 0%

Lagard re Publishing

905 917

1.4% 3.1%

Lagard re Active

450 471 4.7% 0.3%

Lagard re Services

1,821 1,814 -0.4% -0.8%

Lagard re Unlimited

213 204 -4.6% -7.1%

The difference between reported and like-for-like data is mainly due to the positive impact of changes in consolidation scope, for 40 million (essentially related to acquisitions in Travel Retail and Digital), which was partially offset by an adverse exchange rate effect of - 24 million caused by the decline in the pound sterling, the yen, the Swiss franc and the US dollar.

Lagard re Publishing

Net sales amounted to 917 million, up by 1.4% in reported terms and by 3.1% like-for-like. The difference is mainly attributable to negative exchange rate movements (- 15.5 million).

Activity in the first half of 2013 was mainly driven by the very strong performance in General Literature in France, the United Kingdom and the United States, and in Partworks.

In France and other French-speaking countries, sales were up 5.5% in a weak market, with in particular a strong increase in General Literature bolstered by the publication of Volumes 2 and 3 in the Fifty Shades of Grey series, the Moi Zlatan Ibrahimovi biography, Gr goire Delacourts La premi re chose quon regarde and the release in May of Dan Browns Inferno.

Business was also up in the United States ( 7%) thanks to a stronger publication schedule that was underpinned by the cinema release of films based on Nicholas Sparks books published by the Group.

In the United Kingdom, the Adult Trade segment was up ( 1%), but this positive trend was countered by difficulties in overseas markets (New Zealand and Australia).

In Spain/Latin America, activity declined (-7.7%) due to the spanish economic problems, which were not offset by growth in Latin America.

Partworks sales grew sharply ( 12.1%) with a very strong performance in the UK, Russia and Japan.

Digital books continued their rise in English-speaking countries, accounting for 34% of Adult Trade sales in the United States (vs. 27% at end-June 2012) and 31% in the United Kingdom (vs. 22% at end-June 2012). Digital books now account for 11.3% of Lagard re Publishings total net sales, compared with 8.4% at the end of June 2012. In France, the contribution of digital sales to Adult Trade sales remains low (3.2%), although rising sharply.

Lagard re Active

Net sales totalled 471 million, up 4.7% on a reported basis or 0.3% on a like-for-like basis. The difference between reported and like-for-like figures is essentially due to the positive impact of changes in consolidation scope ( 20 million) following the acquisitions made in Digital in 2012 (BilletR duc.com and LeGuide.com).

Sales were mainly underpinned by the strong performance in Audiovisual Production, partially offset by the 6.2% decline in advertising sales across all businesses within the division and by the continuing fall in circulation revenue.

Sales for Magazines in France fell by 5.6%, with a contraction in the advertising market and a decline in circulation (-7.6%).

Radio turned in a strong performance in France, in particular at Europe 1 ( 3.7%), while international activity slowed. Radio confirmed its role as a defensive media suited to the current period of crisis

LINK:	http://www.lagardere.com/press-room/press-releases/press-releases-363....
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