0 FULL-YEAR RESULTS

2013 FULL-YEAR RESULTS Significant improvement of recurring EBIT from Media activities(1) ( 5.9%(2))

in a difficult global economy

Net income - Group share: 1,307 million

Net sales: 7,216 million, down 1.3% on a like-for-like basis(3)

Recurring EBIT from Media activities: 372 million, up 5.9% at constant exchange rates

Net income - Group share: 1,307 million thanks to the gain on EADS disposal.

Proposals to maintain the ordinary dividend at 1.3 per share

and of an exceptional distribution of 6 /share

2014 Recurring EBIT from Media activities target: growth between 0% and 5%(4)

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2013 saw significant progress in the continuing implementation of the Lagard re Group re-focus strategy:

Disposal of minority stakes (EADS, Canal France and Amaury);

Development of growing businesses (Travel Retail and TV Production);

Reducing exposure to declining activities (restructuring the Magazines Publishing business and initiating a divestiture process for LS distribution).

For the first time, activities related to print products accounted only for 49% of the Groups net sales (down two percentage points relative to 2012).

In a difficult global economy, the Lagard re Group reported good performances with, of particular note, an exceptional net income and a 5.9% increase in recurring EBIT from Media activities at constant exchange rates, performing just above announced guidance (growth between 0% and 5% at constant exchange rates).

Net sales totalled 7,216 million, down -1.3% on a like-for-like basis, with an upward momentum at the end of the year.

Recurring Media EBIT came out to 372 million, up 4.0% on 2012 at current exchange rates, on the back notably of:

- strong recurring EBIT ( 223 million) and good performance turned in by Lagard re Publishing, with a slight increase in profitability (10.8%, up 0.1 pt), thanks to good results in General Literature and Partworks;

- a 96 million Recurring EBIT at Lagard re Services (compared to 104 million in 2012). Brisk Travel Retail sales still do not offset the decline in press products;

- resilient recurring EBIT at Lagard re Active ( 64 million). Effective cost control and good performance by Radio and TV Production offset the negative trends in Magazines.

- improving recurring EBIT at Lagard re Unlimited (- 11 million compared to - 33 million in 2012). Stable excluding the impact of the provision for the IOC(5) contract recognised in 2012.

Net income - Group share at 1,307 million, compared to 89 million in 2012, thanks to the gain on EADS stake disposal. Adjusted net income - Group share (excluding the EADS contribution and non-operating items) came in at 172 million, down 35 million relative to 2012, attributable mainly to higher tax charges.

Cash flow from operations rose ( 570 million, up 39 million), notably due to a very significant improvement in change in Working Capital Requirement (WCR). Total net cash provided by operating and investing activities accounted for a net cash inflow of 3,445 million.

The Group shows at the end of the year a net cash surplus of 361 million, compared to a net debt at year-end 2012 of 1,700 million. This improvement is mainly attributable to the disposals of non-strategic assets.

I- NET SALES AND RECURRING EBIT BEFORE ASSOCIATES Net sales totalled 7,216 million, down slightly on a like-for-like basis (-1.3%), and on a reported basis (-2.1%). The difference between reported and like-for-like data is due essentially to a negative foreign exchange effect ( 112 million, in particular on the pound sterling, the US dollar and the Australian dollar), partially offset by a positive scope effect ( 55 million), primarily attributable to acquisitions in Travel Retail (Rome airports and DFS Wellington in Australia/New Zealand) and the LeGuide group.

Net sales ( m)

Reported

change

2013/2012 Like-for-like

change

2013/2012

2012

2013

LAGARD RE 7,370 7,216 -2.1% -1.3%(1)

Lagard re Publishing

2,077 2,066 -0.5% 1.9%

Lagard re Services

3,809 3,745 -1.7% -0.9%(2)

Lagard re Active

1,014 996 -1.9% -3.8%

Lagard re Unlimited

470 409 -13.0% -13.6%

(1) -0.7%, excluding the end of tobacco sales in Hungary.

(2) 0.3%, excluding the end of tobacco sales in Hungary.

Recurring EBIT from Media activities stood at 372 million, up 4.0%. Stripping out the negative foreign exchange effect (- 7m), recurring EBIT stands at 379 million, up 21 million ( 5.9%) relative to 2012 and slightly above initially announced guidance (growth between 0% and 5% at constant exchange rates).

Recurring EBIT

before associates ( m)

Difference between

2013/2012 on a

reported basis ( m)

2012 2013

LAGARD RE Media 358 372 14

Lagard re Publishing

223 223 0

Lagard re Services

104 96 -8

Lagard re Active

64

64 0

Lagard re Unlimited

-33 -11 22

Lagard re Publishing: stable recurring EBIT before associates and an improvement in the operating margin thanks to good performances in General Literature and Partworks. Activity

2013 was a good year with net sales at 2,066 million, up 1.9% on a like-for-like basis.

Profitability

Lagard re Publishing successfully raised its operating margin to 10.8% in 2013, up from 10.7% in 2012, thanks to the excellent performance turned in by General Literature and Partworks. The divisions recurring EBIT before associates was 223 million, up 6m vs. 2012 at constant exchange rate. This result is achieved despite the anticipated decline in Education attributable to the absence of curriculum reform and the negative comparison effects (number of best-sellers in 2012). The negative foreign exchange impact brings the recurring EBIT evolution back to stability relative to 2012.

In France, recurring EBIT before associates edged up slightly: the good perform

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