Annual General Meeting April 25 th, 2006 1 Disclaimer All forward-looking statements are TF1 management s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. 2 1
List of documents at shareholders disposal during the AGM 3 List of documents at shareholders disposal The Notification to attend the Meeting, released in : -the n 33 BALO issue dated March 17 th, 2006 -The n 25 Annonces de la Seine issue dated April 6 th, 2006 - a copy of the notification sent to registered shareholders as from April 6 th, 2006 The copy of the letters sent to the Auditors on April 6 th, 2006 4 2
List of documents at shareholders disposal The Directors report to the AGM: - the Directors report to the AGM (ordinary part), - the Directors report to the AGM (extraordinary part), - the special report on stock option exercised or granted in 2005, - the special report on transaction of TF1 free shares attribution, - the special report on shares buy-back, - the Chairman s special report to the AGM on the conditions of preparation and organisation of the Board of Director s works and on the internal control procedures set up by the company. 5 List of documents at shareholders disposal Five years financial record Parent company financial statements year ended December 31, 2005: - Balance sheet, Profit and Loss Account and notes Consolidated financial statements year ended December 31, 2005: - Balance sheet, Profit and Loss Account and notes. 6 3
List of documents at shareholders disposal Statutory auditors reports The list of administrators mandates Informations on the Administrator, whose contract is due to be renewed, are mentionned in the AGM agenda Human resources report List of shareholders 7 List of documents at shareholders disposal Attendance sheet, shareholders proxy and votes, certificates of the authorized intermediary The resolutions The statutes 8 4
Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 9 TF1 : the strongest link with French people They watch They take part They are curious They comment on 7.3 million TV viewers each day during Prime Time more than 11 million votes for Star Academy Season 5 4 million visitors per month on tf1.fr, 1st media website more than 1,000 people contact the TV viewers service each day TF1 Group : the leading medias power 10 5
A growing media offer Terrestrial TV 97% of French households Daily using time 243 per day +2 Theme channels TV 25% of French households Daily using time 111 per day +7 Internet 38% of French households Daily using time 32 per day +6 The development of new supports is not made at the expense of TV consumption New supports Sources : Terrestrial TV : Baromètre Multimedia Mediamétrie GFK Q4 2005 - Mediamat Mediamétrie FY 2005 / Pay TV : MediaCabSat Mediamétrie H1 2005 / Internet : Panel Nielsen Netratings FY 2005 11 2005 2006 : a new step of development Development of TF1 s core activities : Content editor Optimization of federator themes declination : News, Sport, Entertainment/Games, TV drama/cinema, Youth Adaptability to all supports and uses TF1 : creator of notorious and modern brand 12 6
Introduction Broadcasting Advertising Subsidiary Strategy TF1 SA and consolidated accounts Questions Resolutions 13 French people and TV : increasing consumption Daily using time by consumer In 5 years TV Radio Internet 260' 225' 231' 233' 238' 241' 243' 240' 220' 200' 181' 186' 181' In min 172' 180' 167' 169' 160' 140' 120' 100' 80' 60' 17' 22' 26' 32' 40' 20' 0' 2000 2001 2002 2003 2004 2005 + 18-12 + 15 The TV daily viewing time is still in increase. The development of Internet is not made at the expense of TV viewing. Whole base TV : DET 4 years or + - Source : Médiamétrie / Mediamat Radio : DEA 15/13 years or + - Source : Médiamétrie / 75,000-126,000 Internet : 2 years or + - Source : Médiamétrie / Nielsen NetRatings Panel / Internet Équipement and Usages 14 7
New households equipments stimulates TV consumption TV SCREEN MARKET : SALES FORECAST IN VOLUME (in thousands of products) Cathode ray tube Flat screen TV Overhead projector 4,895 4,445 4,165 190 560 1,400 1 400 3,905 3 3,8003 3,430 3 5,160 2,600 2 2,500 2 2003 2004 2005 2006 (Forecasts) A fast growing market (+10% 2005 vs. 2004) supported by the dynamism of flat screens sales. 2006 : flat screens sales will overbalance other screens sales. This enthusiasm of French people for new technologies creates strong expectations of TV consumption in optimal conditions (sound and picture). Source : GFK 15 Consolidation of audience shares Individuals 4 years and + 31,5 32,3 2003 2004 2005 (+0.5) 31,8 20,5 19,8 32,3 (-0.7) 20,5(+0,5pt) 1,8 (-0.5) 3,1 3,6 15,2 14,7 19,8-0,5pt (-0,7pt) 16,1 14,7 3,7 3,6 (-0.2) 3,8 1,8 1,8 12,6 (-0.2) 2,0 12,6 (+0.1) 12,5 (-1,0pt) 16,3 (+0.1) -0,8pt) 3,0 2,9 3,1 36,2 (+0,7pt) (+0.8) 11,2 10,9 F2 F3 C+ Arte M6 F5 ATV 12 Source : Médiamétrie Jan-Dec 2005 vs Jan Dec 2004 16 8
specially on commercial targets Women < 50 years 15-49 years 36,2 (+0.7) 35,5 34,4 16,3 (-0.8) 36,2 (+0,7pt) 19,1 (+0.5) 18,6 1,3 18,5 17,0 10,3 10,6 3,0 (-1.0) 12,2 (+0.9) 3,3 10,0 3,3 3,0 10,3 (-0.3) 1,3 (+0.3) 3,9 (-1,0pt) 16,3 (-0.1) 2,7-0,8pt) 1,4 F2 F3 C+ Arte M6 F5 ATV 17,1 11,3 2003 2004 2005 3,6 1,4 2,7 9,7 32,3 33,7 2003 2004 2005 (+0.6) 33,1 16,7 16,1 (-0.8) 16,9 12,1 10,5 (-0.8) 11,3 5,0 4,4 (-0.4) 4,8 1,5 18,4 (+0.4) 18,0 18,0 1,4 1,6 (-0.2) 2,5 2,6 (+0.1) 2,5 12,0 12,8 (+0.8) 12,0 F2 F3 C+ Arte M6 F5 ATV Source : Médiamétrie Jan-Dec 2005 vs Jan Dec 2004 17 TF1 : always higher! 100 99 97 programmes of TF1 in the 100 best audiences (2005 - Individuals aged 4 and +) 98 96 94 92 90 88 86 84 95 95 95 95 92 92 92 92 91 89 89 89 89 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 97 Best top 100 for TF1 since 1991 Source : Médiamétrie / Individuals aged 4 and above / 2005 18 9
TF1 : always higher! All genres of programmes in the top 100 FRENCH TV DRAMAS : 55 MOVIES : 16 SPORTS : 8 Incl. Dolmen Incl. Le Dîner de cons, best movie audience Incl. best audience of the year: France-Cyprus match 13.3 M viewers NEWS AND MAGAZINES : 7 ENTERTAINMENT : 7 Incl. 8 o clock news bulletin in top 3 Restos du Cœur, Star Academy 19 TF1 strongly invests in all genres of programmes : French TV drama : 90 original TV dramas co-produced in 2005 In 2006, TF1 will carry on investing through 3 themes of programmes : - Eventful TV Drama : L Empire du Tigre, Alerte à Paris, Marie Besnard (M.Robin), Cher Léon (M.Serrault) - 52 : R.I.S (new episodes), Section de recherche, Paris Brigade Criminelle, Les rivières pourpres - and of course recurrent heros : Julie Lescaut, Joséphine Ange Gardien, Navarro 20 10
TF1 strongly invests in all genres of programmes Sport : Great events on TF1 Football World Cup: -2006 - Exclusive rights on all supports 2010-2014 Champions League: - until mid 2009 French Football national team: - until 2010 Rugby World Cup: - 2007 + 2011 Formula 1 Grands Prix: - until 2012 21 TF1 strongly invests in all genres of programmes : Entertainment : Overlasting of strong programmes : Star Academy : Season 6 production in progress Survivor, Temptation Island New concepts: Get me out of here, I m a celebrity! 2006 Key events : Les enfoirés Johnny Hallyday concert NRJ Music Awards 22 11
Beginning 2006 : still the best audiences* 25 programmes above 9 M viewers (vs. 18 in Q1 2005) Since the beginning of the year, a strong leadership with 88 Prime Time on 92 vs. 84 Prime Time on 92 over the same period in 2005 Les Bronzés: 12.1 M viewers 2006 best audience: Les Bronzés font du ski 12.2 M viewers 8 o clock news bulletin: 11.3 M viewers on March 12 Source : Médiamétrie / Médiamat * From 01/01/06 to 02/04/06 23 Leading complementary channels Ranking Cabsat 1) Target 1 AB + Men 15-49 5 channels in the top 10 3 5 8 9 Women 15-49 Individuals 25-59 59 AB + 15-34 Individuals 15-49 AB + AB + AB + A portfolio of leading theme channels, with strong contents, for every advertising target and on every support 1 Source : Médiamétrie / MédiaCabSat 10 / Whole basis Ranking excluding FTA terrestrial channels 24 12
Conclusion TV is the most popular media in France. => The TV consumption is still in increase! TF1 reinforce its leading position with a policy of exclusive, eventful and live programmes. TF1 is preparing the future by: 1. Securing strongest contents; 2. Developing leading theme channels covering all the French population and thus all advertising targets; 3. Adopting new digital technologies (HD broadcasting, 16/9, digital production ); 4. Adapting its contents to each new support (Mobiles, Internet, Podcasting ). 25 Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 26 13
2005 advertising revenue in France TF1 core channel French thematic channels Change vs. 04 + 0.1% + 16% Internet + 30% 2005 ( M) TF1 Group total advertising in France + 0.7% 1,716 27 TF1 : a commercial audience 2 or 3 times higher than on other channels 6.2% Commercial audience 2005 7.0% 2.2% 2.0% 5.5% 1.7% 4.5% 2.2% 1.6% 4.2% 1.5% 3.6% Wom < 50 years Ind 25-49 years Ind 15-34 years Wom + Child Men15-49 years Ind AB + Source Médiamétrie 2005 TF1commercial audience in comparison with competitors ( France 2 France 3- Canal + - M6) 28 14
4 channels managed by TF1 Publicité in the top 10 Audience Audienceshare share(%) (%)--Individuals Individuals44++ 1.9 1.8 RTL 9 1.3 Theme channels : 1.2 Canal J 1.1 Paris Première - April 25th 2006-12.0% of TV total audience (+ 0.9 pt in 1 year) - Annual General Meeting In a context of strong development: 1.0 1.0 Canal + Sport 0.9 0.9 13ème Rue 0.9 Source : Médiamétrie 2005 whole base Individuals aged 4 and above - TOP channels : Médiacabsat 10 September 2005 to February 2006 29 TF1 Publicité, the multimedia agency Internet Create the contact massively Enrich and keep the contact - April 25th 2006 -.fr New supports - Annual General Meeting Theme channels TV Terrestrial TV TF1 Publicité Publicité on every audiovisual supports 30 15
Different and complementary advertising means Traditional advertising Sponsorship Sponsorship Traditional advertising Big screen Web Podcasting Webisodes.fr Mobisodes SMS + MMS + WAP Sponsorship - April 25th 2006 - Sponsorship Podcasting - Annual General Meeting Traditional advertising Sponsorship 31 A new growth opportunity : European advertising deregulation - Additionnal ad breaks - Remaining forbidden sectors soon on TV (cinema (cinema,, books) - April 25th 2006 - - Advertising limit : 20% per hour - Annual General Meeting -From 60 60 sequential hour to the o clock hour 32 16
TF1 Group: today 2005 ( M) TF1 Group total revenue 2,874 Total advertising revenue in France 1,716 Other activities 1,158 Incl. TPS* 365 100% 60% 40% 13% * Contribution IFRS 5 33 TF1 Group after TPS : tomorrow Revenue ( M) 2005 2008 TPS * Thematic channels** Other activities 365 318 475 Total 1,158 Cagr + 8% / y Cagr + 8% / y 400 600 New Developments 0 250 0 1,250 * IFRS 5 impact ** France (excl. adv) + Eurosport International 34 17
TF1 Group after TPS : profitability Operating profitability 2005 2008 TF1 Channel 16% TPS * Other activities excl. TPS TF1 Group 4.7% 10.7% New developments 0% Total other activities 8.9% ~ 10% 12.9% * IFRS 5 impact 35 Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 36 18
The TPS challenge 2005 key figures Revenue: 396.9 M (+5.6%) Operating profit *: 17.0 M Total subs: 1.75 M DTH. & ADSL subs: 1.33 M (- 28 k vs. 2004) Net profit : 23 M in 2005 (100%) An improvement of the offer 23 new theme channels (incl. 7 DTT): Ushuaïa a TV, Eurosport 2, OM TV Exclusive sports rights Video On Demand (VOD( VOD) A growing distribution in 2005 Launch of TPS offer through Neuf Télécom T (May 05) Launch of TV over mobile (October 05) Launch of TPS offer through Alice (November 05) * TPS contribution (at 66%) TPS DTT offer launched mid-february 2006 37 TPS : pay-tv commercial agreement Signature in January 2006 of an agreement to combine the pay-tv businesses in France of Canal+ Group and TPS within a Group controlled by Vivendi Universal. This agreement in several steps will be finalized in 2006, after the approval of concerned authorities. Upon completion of the transaction, and further to the agreement signed in February 2006 by Vivendi Universal and Lagardère, the new group would be owned: Vivendi Universal : 65,0 % Lagardère : 20,0 % TF1 : 9,9 % M6 : 5,1 % TF1 and M6 have decided to remain shareholders of the new group for a minimum of 3 years. When this period expires, TF1 and M6 would have a put option at market value that would allow them to obtain the maximum benefit from the dynamism of the new group. This put option would be exercisable at a minimum guaranteed figure of 1.13 billion for the shareholding of 15%, corresponding to an overall valuation of the new group of 7.5 billion. 38 19
TPS : pay-tv commercial agreement December 16, 2005: proposed pay TV combination between Group Canal+ and TPS. January 6, 2006: signature of the agreement between Vivendi, TF1 and M6. April 14, 2006: The operation is submitted to the competition authority by the finance minister. The competition authority has 3 months available to examine the operation and consult the CSA and the ARCEP. The authority will give its answer on July 13, 2006 at the latest. The minister has 4 weeks available for action. 39 Téléshopping : a strong growth on Internet 2005 key figures Revenue: 89.3 M (+ 6.8%) Operating profit : 8.2 M Operating margin: 9.2% A strong activity in 2005 Broadcasting business remains at a high level in 2005 Internet revenue: + 56% / 20% of Téléshopping T revenue 4.0 M 3.5 M 3.0 M 2.5 M 2.0 M 1.5 M Revenue Orders January 06 : Internet Record 3.7 M of revenue 50,000 orders 1 M visits 1.0 M 0.5 M 2002 2003 2004 2005 2006 40 20
Téléshopping: promising growth drivers Promising growth drivers Development of e-business and m-business (Internet & mobile) Launch of 2 sites on i-mode and on Interactive TV through TPS Acceleration of the development of surinvitation.com Infomercials: : start in October 2005 on several cable & satellite channels Opening of 2 shops in Paris in August 2005 and March 2006 41 TF1 Vidéo : a growing profitability 2005 key figures* Revenue: 160.5 M (- 5%) Operating profit: 16.8 M Operating margin: 10.5% (+ 0.6 pt) Units sold: 20.4 M 2006 prospects Accelerate sales of non movies products Develop the VOD business => dematerialization of supports on www.tf1vision.fr website launched in November 2005 Develop the business in Europe 7.2% 7.5% 8.0% 9.9% 10.5% Medium term operating margin : > 10% * Incl. CIC and RCV. 2001 2002 2003 2004 2005 42 21
Cinema: a good performance in 2005 2005 key figures* Revenue * : 61.1 M (+ 52.7%) Operating profit * : 2.8 M 14 M viewers in theatre 2005: a good performance Revenue : x2 vs. 2003 4 th theatre distributor in France (1 st excl. US Majors) Stake in The Weinstein Company (substitution to the Miramax agreement) Strong growth of audiovisual rights trading in France and abroad Movies 1st run Movies in library M 60 50 40 30 20 TF1 International company accounts TV Programmes 10 * Contributions of TF1 International 0 2002 2003 2004 2005 2006 Forecasts 43 Cinema : strategy and prospects 2006 : a promising line-up International market: Tom Yum Goong, La Môme French market: Les Brigades du Tigre, The Departed TF1 International audiovisual rights: a metric key in TF1 Group s s strategy Strategy of World rights acquisition for US and Asian movies Negotiation of multi-supports rights Provider for each TF1 Group s s network 44 22
Métro : 1st year of breakeven 2005 key figures (figures at 100%) Revenue: 27 M (+ 35%) Net profit > 0 2002 : launch in Paris 2005 : breakeven A strong development of the business (2005 figures) Distributed in 10 cities in France: + 7 new cities in 3 years 2003 : TF1 stake => 34% 630,000 copies printed on average per day: + 70% in 3 years 770 advertisers, i.e. 4,073 pages of advertising sold Declination of know-how and contents Special copies: Cinema: Festival de Cannes (launched in 2005) Music: Fête de la Musique (launched in 2005) Finances: : 3 copies in 2005 Beach: : 4 copies during the summer 2005 Sport: : 2006 football World Cup 45 An ongoing growth of the core business 2005 key figures* Revenue: 292.7 M Operating profit : 31.8 M Geographical Launch of Eurosport in Asia/Pacific Technological Linguistic A strategy of expansion Broadcast of the Eurosport channel in HD Launch of new versions Of the products offer Development of the portfolio of events organized by Eurosport Development of Eurosport Group on mobile and Internet Of the brand * Contribution to TF1 Group consolidated Profit and Loss account 46 23
N 1 pan-european channel A must have channel 0.1 105 M households + 7.2% best growth since 1996 56 M paying subs + 8.5% 54 countries / 20 languages French German English Dutch Spanish Portuguese Italian Greek Swedish Norwegian Danish Finnish Polish Russian Turkish Hungarian Czech Romanian Bulgarian 21 millions viewers / day 1.7 0.5 3.2 23% 10.4 42% 6.5 28% 1.1 7.0 1.1 1.5 34.3 95% 3.2 4.2 4.0 0.8 0.7 2.6 2.6 2.7 2.3 2.4 0.3 3.3 0.5 1.2 16% 0.2 1.0 0.2 0.2 2.9 0.9 0.8 H1 2006 : launch of the Serbian version 0.5 0.6 1.7 1.7 Israel: 1.4 Russia: 2.4 Penetration (% of households) >75% 50% - 75% 25% - 50% 10% - 25% 5% - 10% Others: 0.8 Eurosport is available in mother tongue for 85% of the households. 47 The strength of the Eurosport brand* * n 1 in Europe A real success in 2005 Launch of the channel on January 10, 2005 with a 86% Brand awarness 18 millions households 18 millions paying subs 37 countries 8 languages English Italian French Polish Greek Turkish 0.3 0.4 0.2 0.4 0.2 0.2 9.0 0.0 0.1 1.3 0.01 2.5 0.4 0.8 0.2 0.4 0.2 0.2 0.2 0.0 0.0 0.1 0.1 0.2 0.5 Romanian Version launched on February 8, 2006 Russia & others: 0.4 Russian Romanian Eurosport 2 Eurosport 2 & Eurosportnews * EMS 2005 Winter release 48 24
The World expansion The 24h/24 sport news channel is distributed in Europe and in the World to 8 millions households and in planes with A F R I CA I N D I A V I E T N A M T H A I L A N D C H I N A (Hotels) H O N G K O N G EUROSPORT ASIA Ltd M A L A I S Y A S I N G A P O R E M A L D I V E S A U S T R A L I A N E W - Z E L A N D A tool to develop the Eurosport brand all over the World 49 The N 1 pan-european sport website A strong growing media 2005: Audiences X 2 to reach 1.8 billion pages viewed Advertising revenue: + 55% Audience (Billions of pages viewed) 0.3 0.4 0.6 2001 2002 2003 2004 2005 Launch of the Russian version on February 3, 2006 «Become a national leader in each country» 0.9 1.8 New design on line on January 16, 2006 2006 : launch of 5 new versions 50 25
Services to all operators Belgium Holland Norway Sweden Dutchtone Finland Ireland UK Germany France Portugal Orange Spain Suisse Italia Denmark Autriche Orange Malta Vodafone Malta Poland Orange Slovakia Moldavia Voxtel Moldcell Romania Greece Go Mobile Distribution of the Eurosport channel on Vodafone mobile network (1) (1) In 12 countries in Europe (UK, Germany, Spain, Holland, Portugal, Greece, Belgium, Austria, Ireland, Sweden, Hungary & Croatia) 51 Eurosport : organizer of sport events Eurosport promotes the FIA World Touring Car Championship and owns all commercial rights (TV rights, marketing rights on all circuits and cars, video rights, merchandising, mobility ) 10 week-ends 3 continents For the next season, Eurosport will broadcast the European races in HD "2 intense races of 25 each with tourism cars close to mass-produced cars" 52 26
Eurosport : the conquest of new territories On January 6, 2006: launch of a channel called Eurosport World, for Asia and the Pacific (1) A growth driver Strength of the Eurosport brand Taste for European sports No European sports channel yet Make a worldwide brand with 30% of the advertising revenue made with Asian advertisers EUROSPORT ASIA Ltd (1) Hong-Kong, Singapore, Malaysia, Australia, India 53 Eurosport : close to 15 years of developments 1991 2005 2006 Channels Languages Internet websites Continents Households Subscribers 3 for Eurosport 1 for Eurosport 20 millions 19 for Eurosport 20 for Eurosport 6 10 / 11 1 for Eurosport 3 for Eurosport 105 millions 78 millions* world Broadcasting Cable Cable, satellite, ADSL, DTT, UMTS Cable, satellite, ADSL, DTT, UMTS, DVBH Technologies Analogue Analogue, Digital Analogue, Digital * For the 3 channels 54 27
TF1 Italia Shareholder of Europa TV, content editor and distributor and potential player on TV over mobile (DVBH( DVBH) December 16, 2006: sale of Europa TV frequencies to Radio Televisive Italiane (AGCOM agreement in April 2006) to develop a new DVBH network in which Europa TV could hold a 20% minority stake. And a DTT operator Those assets and our know-how are the basis of our development in Italy: TV offer, PlayOne, Le Buzz, Internet and mobile businesses Reminder : the Italian activities are consolidated under the equity method in TF1 Group accounts 55 overtakes its target 2005 key figures Revenue: 68.7 M (+ 43.7%) Operating profit : 6.3 M (x 2.5) Operating margin: 9.2% Medium term target : profitability > 10% 80 60 40 20 0 2,5 2.5 2004 68.7 69,8 6,3 6.3 2005 Revenue Operating profit +87% pages viewed (4.5 Bn) the audience doubled every other year 120 M videos in 2005 Advertising: ~ +30% of growth in 2005 47.8 48,9 + 44% x 2,5 accelerate its growth 56 28
outperform the market Tf1.fr, 1st media website Evolution of the TF1 Group audience (unique visitors) compared to the Market (December( 2004 to December 2005) Audience share of TV media websites December 2005 14% 21% 13% 52% Visitors: > 3.9 M (+ 47%) Source: Médiamétrie Dec.2005 4 3 2 Dec. 04 2.8 M of visitors Jan 05 2.6 M of visitors TF1 Dec. 05 3.9 M of visitors Market : 21 st French website in France in audience (+6 ranks in 1 year) : 9 th website in terms of advertising revenue 57 New media: growth accelerator for the Group Take opportunities on high speed market (Internet, mobile) : reinforcement of the power A strategy of alliances and partnerships Agreement with Creation of with 58 29
Strengthen the positioning of Agreement between and The N 1 alternative high speed Internet Provider in France works with : for the edition for the advertising agency The universe will enter the top 10 of French websites A power that will create a leverage effect on advertising revenue. 59 Accelerator of the development on mobiles teams up with European leader of multimedia on line services TOP 3 of mobile entertainment at the end of 2006-2006 revenue: 20 M - Market share at the end of 2006: > 10% 1 st «mobile Entertainment» advertiser on leading media 1 st TV 1 st French magazine 1 st radio on people < 25 60 30
Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 61 A «global Media» Strategy Keep in touch! on mobile TF1 is able to reach its audience any where and on any device TF1 optimizes the use of its content on every support. 62 31
From Television to «Global Media» TF1 Group Thematic skills Uses TV PC Mobility One dimensional Multi-Dim Off Media RIGHTS News Sport Dramas/ / Cinema Games / Entertain. Mag /Documentaries/ Youth Podcast Podcast * * * Other LANGUAGE : FRENCH * Temporary name Group Consumption Individual Consumption 63 New Media : growth accelerator for the Group Take opportunities on high speed market (Internet, TV, mobile) Development of new multi-support contents 1 st project (Games) : PlayOne Concept : games available on every support 2 nd project (Community) : le.buzz Concept : Spread audio and video contents from and for net surfers in order to create a brand and a community * Broadcast of those contents : France - Italy * Temporary name 64 32
Licences and off médiam The promise : «I play, I win» The concept : A general vision of the game delivered on every support «Playing everywhere at anytime» The stake : Develop a cross brand for game for TF1 Group TV Web Mobility Becoming a multimedia game leader in 3 years time 65 le.buzz* : its position Spread audio and video contents from and for net surfers and create a brand and a community Lifestyle : music, fashion, sport, animation, short movies 15-34 years old Community Brand Two targets : TARGET * DISTRIBUTION Multi supports Internet (Web) TV Mobile Alldevices CONTENTS Be well-known (Internet) The best contents from Internet User Generated Content Productions Concept : *temporary TF1 project name A community TV & TV Blog creation 66 33
Bouygues Telecom and TF1 launch a new offer The natural partnership between A Telecom operator And a major editor well-known for its innovation, in mobile phone A new voices and services offer attractive for customers An original marketing positioning A 5 years agreement Launch of the offer: May 2 nd, 2006 67 Conclusion TF1 Group Strategy : Consolidating leadership in programs edition in France and abroad Optimizing Brands and contents offer Adapting programs and services to new technologies ATAWAD Strategy Any time, any where, any device 68 34
Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 69 TF1 SA Profit and Loss Account M 2005 2004 / 04 M / 04 % Turnover Operating Expenses (1,226.7) Deprec., amort.. and provision (146.4) Other expenses (70.2) Operating profit 293.4 Financial profit/loss 0.5 Exceptional profit/loss 2.7 Employee profit sharing (10.2) Corporate income tax 1,736.7 1,710.5 + 26.2 + 1.5 % (104.1) (1,170.0) (110.8) (71.9) 357.8 (60.5) 1.9 (12.9) (130.5) - 56.7-35.6 + 1.7-64.4 + 61.0 + 0.8 + 2.7 + 26.4 + 4.8 % + 32.1 % - 2.4 % - 18.0 % NS + 42.1 % - 20.9 % - 20.2 % Net profit 182.3 155.8 + 26.5 + 17.0 % 70 35
TF1 SA Cash Flow statement M 31 dec. 2005 31 dec. 2004 Cash position at beginning period 125.8 154.6 Cash Flow Change in working capital needs Net cash inflow from operating activities Net cash inflow from investing activities Net cash inflow from financing activities Total Change in cash position 208.8 (78.3) 130.5 (59.6) (152.9) (82.0) 246.5 12.3 258.8 (66.3) (221.3) (28.8) Cash position at end of period 43.8 125.8 71 TF1 SA Balance sheet : net assets M 31 dec.. 05 31 dec.. 04 / 04 M Intangible fixed assets Tangible fixed assets Financial assets Fixed assets Inventories Debtors* Marketable securities and cash at bank and in hand Current Assets Total Assets 107.2 31.5 988.4 1,127.1 417.9 1,009.1 44.1 2,598.2 137.1 29.4 967.3 1,133.8 403.0 960.6 142.1 1,471.1 1,505.7 2,639.5-29.9 + 2.1 + 21.1-6.7 + 14.9 + 48.5-98.0-34.6-41.3 * Incl. prepaid expenses. prepayment and accrued income, unrealized losses/gains on foreign exchange, expenses to be spread over several years, premium on the redemption of the bond issues. 72 36
TF1 SA Balance sheet : liabilities M 31 dec.. 05 31 dec.. 04 / 04 M Share capital Share premium Reserves Shareholders funds 1,143.3 Provisions for liabilities and charges Financial creditors Other creditors* Total Shareholders' funds and liabilities 42.8 24.1 1,076.4 43.8 674.9 736.2 2,598.2 43.0 50.0 1,066.5 1,159.5 34.9 679.2 765.9 2,639.5-0.2-25.9 + 9.9-16.2 + 8.9-4.3-29.7-41.3 * Incl. prepaid income, unrealized losses/gains for foreign exchange 73 Consolidated P/L: operational breakdown(1/2) M Net advertising revenue Advertising agency fees Authors CNC TDF / Satellites / Transmissions Net revenue from broadcasting Programming costs 2005 2004 / 04 % 1,647.5 (86.5) (63.2) (81.7) (54.9) 1,361.2 (919.4) 1,645.5 (86.3) (63.9) (81.5) (56.5) 1,357.3 (893.2) + 0.1% + 0.2% - 1.1% + 0.2% - 2.8% + 0.3% + 2.9% Gross Margin 441.8 464.1-4.8% 74 37
Consolidated P/L: operational breakdown (2/2) / 04 M 2005 2004 % Gross margin 441.8 464.1-4.8% Diversifications and other revenue Other operating expenses Depreciation & amortization EBIT Résultat opérationnel Including TPS* Cost of net debt Share of profit/losses of associates Income Tax expense Other financial income and expenses Minority Interest 1,215.7 (1,134.7) (152.6) 370.2 17.0 (15.6) 2.2 (116.6) (5.5) 1.6 1,201.2 (1,138.4) (143.9) 278.6 383.0 2.0 (20.6) 2.0 (136.2) (5.0) 1.5 + 1.2% - 0.3% + 6.0% - 3.3 % -24.3% +10.0% - 14.4% NS + 6.7% Net Profit 236.3 224.7 Résultat Net part du Groupe 176.6 166.1 + +5.3% 6.3% Including TPS* 14.2 (2.5) *In accordance with IFRS 5. impact of held-for-sale operation (TPS) 75 Contributions 2005 * M Revenue Op. Profit Op. Margin 2005 2004 TV Broadcasting Incl. TPS International Channels Other activities Total Téléshopping E-TF1 Audiovisual rights Incl. TF1 Vidéo TF1 International 2,010.6 396.9 228.5 243.0 (5.1) 2,873.9 292.5 16.4 22.6 29.9 8.8 370.2 14.5% 17.1% 89.3 8.2 9.2% 11.4% 68.7 6.3 9.2% 5.2% 160.5 61.1 16.8 2.8 4.1% 0.5% 9.9% 6.2% 10.5% 9.9% 4.6% ns 12.3% 11.2% ns ns 12.9% 13.4% TV broadcasting : TF1, TF1 Entreprises, Teleshopping, Eurosport France, LCI, Odyssée, TF6, TV Breizh, Série Club, Histoire, Tfou, Ushuaïa TV, TMC, e-tf1, Glem, Alma, TAP, TPP, Studios 107, TF1 Films Production TPS : TPS and holdings Audiovisual Rights : TF1 Vidéo, CIC, RCV, Ciby DA, TF1 International, Téléma, TCM, Cabale International Channels : Eurosport, KSO & SRW Other activities : Visiowave, Syalis * Contributions after intra-group restatements 76 38
Consolidated cash flow statement M Cash position at beginning period 2005 142.3 2004 184.2 Operating cash flow before tax expenses Change in working capital need Net cash inflow from operating activities Incl. held-for-sale operation* Net cash inflow from investing activities Incl. held-for-sale operation* Net cash inflow from financing activities Incl. held-for-sale operation* Total Change in cash position Incl. held-for-sale operation* 452.2 (47.0) 248.8 34.1 (114.4) (23.8) (159.1) (9.5) (24.7) 0.8 489.9 Tax expenses (156.4) (148.3) Effect of changes in accounting method Incl. held-for-sale operation* (10.0) 331.6 48.4 (119.5) (7.1) (252.1) (41.3) (1.9) (0.1) (41.9) (0.1) Cash position at end of period 117.6 142.3 *In accordance with IFRS 5 (TPS) 77 Consolidated balance sheet : net assets M Intangible assets Goodwill Property. plant & equipment Investments in associates Other financial assets Tax assets Non-current assets Stocks Trade and other debtors Financial instruments Cash and cash equivalents Current assets 2005 179.8 481.4 151.7 39.6 21.0 57.1 930.6 523.1 1,261.8 15.1 175.8 1,975.8 2004 125.1 889.0 208.2 45.1 10.7 52.4 Other financial assets 10.7 Tax assets 52.4 1,330.5 551.4 1,218.6 12.2 158.9 Financial instruments 12.2 1,941.1 Change M M % + 54.7 + 43.7% - 407.6-45.8% - 56.5-27.1% - 5.5-12.2% + 10.3 + 4.7-399.9-28.3 + 43.2 + 2.9 + 16.9 + 34.7 + 96.3% + 9.0% - 30.0% - 5.1% + 3.5% + 23.8% + 10.6% + 1.8% Held-for for-sale asset* 563.6 + 563.6 Total Assets 3,470.0 3,271.6 + 198.4 + 6.1% *In accordance with IFRS 5 (TPS) 78 39
Consolidated balance sheet : liabilities M 2005 2004 Change M M % Shareholders equity 1,049.8 975.5 + 74.3 + 7.6% Long-term debt Non-current provisions Short-term term debt 26.0 57.1 Financial instruments Trade and other creditors 0 1,404.2 6.6 1,557.3 Current provisions 46.0 58.1 Total liabilities and equity 513.3 32.5 3,470.0 524.3 30.1 Non-current tax liabilities 48.6 62.6 Non-current liabilities 594.4 617.0 Current liabilities 1,476.2 1,679.1 Liabilities relating to held-for for- sale asset* 3,271.6-11.0 + 2.4-14.0-22.6-31.1-6.6-153.1-12.1-202.9 349.6 + 349.6 + 198.4-2.1% + 8.0% - 22.4% - 3.7% - 54.5% - 100% - 9.8% - 20.8% - 12.1% + 6.1% *In accordance with IFRS 5 (TPS) 79 Employees TF1 SA 1,508 1,485 Subsidiaries Total 31 Dec. 05 2,454 3,962 31 Dec. 04 2,382 3,867 / 04 + 23 + 72 + 95 Growth of employees is mainly due to the integration of mobile staff. s 80 40
Shareholding structure 31st December 2005 BOUYGUES Capital 42.9% Voting rights 42.9% Société Générale (1) Core shareholders Other France (2) Incl. employees Europe (excl( excl.. France) Autres (excl( excl.. Europe) 1.0% 43.9% 29.0% 3.6% 17.6% 9.4% 1.0% 43.9% 29.0% 3.6% Treasury shares 0.1% - 17.7% 9.4% Total 100% 100% (1) At the beginning of 2006. Société Générale sold on the market its 1% stake that it held in TF1. End of the agreement of February 19th 1987 between Société Générale and Bouygues (2) Including unidentified shareholders Source : Euroclear as of 31 December 2005 81 Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 82 41
Introduction Broadcasting Advertising Subsidiaries Strategy TF1 SA and consolidated accounts Questions Resolutions 83 Ordinary Part First Resolution Approval of the 2005 company accounts 84 42
Ordinary Part Second Resolution Approval of the 2005 consolidated accounts 85 Ordinary Part Third Resolution Approve the agreements and operations governed by article L. 225-38 of French Commercial Law (Code de Commerce) mentioned in the special report of the Statutory Auditors 86 43
Ordinary Part Fourth Resolution Approve the appropriation and distribution of profits and fixed the dividend per share at 0.65 87 Ordinary Part Fith Resolution Renew for a further two years the term in office of Alain POUYAT whose term as Director is due to expire at the end of this Annual General Meeting 88 44
Ordinary Part Sixth Resolution Note the election of Directors representing employees 89 Ordinary Part Seventh Resolution Authorise the implementation of a share acquisition programme enabling the company to buy back its own shares on the stock market. Such acquisition would be limited to 10% of total share capital. The maximum purchase price per share is to be set at 45 and the minimum selling price per share at 15. 90 45
Extraordinary Part Eighth Resolution Authorise the Board of Directors, for a 24 months period, to reduce the company s capital through the cancellation of treasury shares (limited to 10% of the capital) 91 Extraordinary Part Ninth Resolution Abolish the 0.5% limit on shareholding and voting rights leading to the statutory obligation of declaration modification of Article 7 of the articles of incorporation 92 46
Extraordinary Part Tenth Resolution Allow Directors participation in Board meetings by telephone modification of Article 13 of the articles of incorporation 93 Extraordinary Part Eleventh Resolution Bring into line the company s articles of incorporation with the provisions of Law No. 2005-842 dated July 26, 2005 on economic confidence and modernisation. 94 47
Extraordinary Part Twenty-second Resolution Powers for registration and formalities 95 Annual General Meeting April 25 th, 2006 96 48