A message from Nonce Paolini

"Bouncing back in 2010"

Although 2009 was a tough year mired in economic crisis, it also spawned several initiatives that the TF1 group made every effort to capitalise on and bring to fruition in 2010. As a result, last year was marked by a recovery in almost all the Group’s entities and by the incorporation of two digital terrestrial channels, TMC and NT1.

But 2010 will also be remembered as a year of innovation, not just in terms of programming, from drama and entertainment to news, but also technology (HD, 3D, interactive applications for smart TV), services (from the web to MyTF1, from the TF1, TMC and Eurosport Players to video on demand with TF1 Vision, and Automotocompare.fr) and e-tailing (Place des Tendances). Innovation was also in evidence at TF1 Publicité, which launched TF1 Conso, and TF1 Entreprises, with highlights such as MasterChef (the game and book), Spiritus Dei, Mozart, l’Opéra Rock, Zaz, and new licences.

Another highlight of 2010 was the implementation of the Group’s 360 strategy. Further substantial progress has been made and we are no longer addressing our audiences simply as viewers but as people. Our content is present on all types of screens, allowing us to reach all our targets. Web users, owners of smart phones, viewers and consumers can access it whenever they want, whether at home or on the move, alone or with family.

By pursuing and expanding an approach that combines the broad and effective reach of mass media with the closeness of digital media, TF1 should be able to consolidate its position as the leading private TV channel in France.

All this has been made possible by the new mindset that has pervaded the Group in recent months.

The cross-cutting approach that was initially aimed at breaking down barriers has now become a shared working method, in evidence every day. No programme goes out on the air without being discussed and implemented with the subsidiaries and on digital media. The business model for digital media is beginning to take shape, particularly with the commercial success of video advertising.

These remarkable achievements result from the analyses and preparations we undertook during the bleakest year in our history. Thus 2009 was a year of crisis but also of initiative – and the first positive results are beginning to emerge.

In 2010 we delivered on our promises. Two key events were the award of Diversity certification on 14 December and the decision by France’s supreme administrative court on 30 December to approve the acquisition of TMC and NT1, a successful outcome to two years’ work. Last but not least, 2010 demonstrated our ability to adapt our business model, thereby boosting the Group’s profitability.

If 2010 was the year of recovery, 2011 will be the year of building on those achievements and winning (or winning back) customers.

We must once again harness all our energies so that our Group, which now operates on a 360° horizon, can consolidate its positions and continue to advance while remaining a leader in its core business, information and entertainment in all its forms.

I would like to thank our shareholders for their trust and our staff for their unwavering dedication and efforts.

Boulogne-Billancourt, February 16, 2011

Nonce Paolini
Chairman and Chief Executive