investor presentation - lagardere.com · distribution in hungary distribution in belgium and spain...

INVESTOR

PRESENTATION

December 2017

DISCLAIMER

Certain statements contained in this document are forward-looking statements (including objectives and trends), which address our vision of the

financial condition, results of operations, strategy, expected future business and financial performance of Lagardère SCA. These data do not

represent forecasts regarding Lagardère SCA’ results or any other performance indicator, but rather trends or targets, as the case may be.

When used in this document, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “predict”, “hope”, “can”, “will”, “should”, “is

designed to”, “with the intent”, “potential”, “plan” and other words of similar import are intended to identify forward-looking statements. Such

statements include, without limitation, projections for improvements in process and operations, revenues and operating margin growth, cash flow,

performance, new products and services, current and future markets for products and services and other trend projections as well as new business

opportunities.

Although Lagardère SCA believes that the expectation reflected in such forward-looking statements are reasonable, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including without limitations:

• general economic conditions;

• legal, regulatory, financial and governmental risks related to the businesses;

• certain risks related to the media industry (including, without limitation, technological risks);

• the cyclical nature of some of the businesses.

Please refer to the most recent Reference Document (Document de référence) filed by Lagardère SCA with the French Autorité des marchés

financiers for additional information in relation to such factors, risks and uncertainties.

No representation or warranty, express or implied, is made as to, and no reliance should be placed upon, the fairness, accuracy, completeness or

correctness of such forward-looking statements and Lagardère SCA, as well as its affiliates, directors, advisors, employees and representatives

accept no responsibility in this respect.

Accordingly, we caution you against relying on forward-looking statements. The forward-looking statements abovementioned are made as of the

date of this document and neither Lagardère SCA nor any of its subsidiaries undertake any obligation to update or review such forward-looking

statements whether as a result of new information, future events or otherwise. Consequently neither Lagardère SCA nor any of its subsidiaries are

liable for any consequences that could result from the use of any of the above statements.

2

GROUP PROFILE slide 4

GROUP STRATEGY slide 8

slide 15

slide 19

slide 23

slide 26

GROUP PERFORMANCE slide 29

Appendix slide 40

TABLE OF CONTENT

3

GROUP PROFILE

Consommation

Mobility

Digital is a growth driver for

content consumption (multi-

binge-viewing)

Creation of a worldwide

middle class, happy to travel

and experience worldwide

cultural products

International offering adjusted to local

specificities: shops, sport events,

medias and entertainment Nomadism,

globalisation of

travel: increase

in PAX

Consumption

Digitalisation

Glocalisation

A FAST-CHANGING GLOBAL ENVIRONMENT SHAPED BY 4 KEY GROWTH DRIVERS

5

Assemblée Générale

du 4 mai 2017

Source: Lagardère, ACI, 2016 World Airport Traffic Forecasts.

Growth in air passengers travel [in %, 2015-2040]

GROUP LONG-TERM GROWTH BASED ON WORLDWIDE INCLINATION TOWARDS EXPERIENCE: TRAVEL AND CULTURE EXPERIENCES

Source: Airbnb travel report 2016.

Travel is key for millenials & BRICs

CAGR: 4.9 %

Latin

America

+4.6%

North

America

+2.8%

Europe

+3.7%

Asia-

Pacific

+6.2%

Middle

East and

Asia

+7.7%

Africa

+4.2%

6

50%

31%

• No. 3 worldwide in Travel Retail

• Robust expertise in three business lines

• Leader in football in Africa, Asia and Europe

• Leader in sponsorship and media rights globally

• Leader in golf globally

7%

2016 revenue breakdown by division

• No. 3 worldwide (Trade)

• A multi-segment publisher

• A major player in the digital sector

12% • No. 1 in TV Production in

France

• One of France's leading Internet and mobile media groups

• Major player in Press and Radio in France

A DIVERSIFIED GROUP WITH LEADING BRANDS AND MARKET POSITIONS

2016 revenue breakdown by region

France 30%

Europe 39%

US and Canada

20%

Latin America, Africa, Middle East 2%

Asia-Pacific

9%

7

GROUP STRATEGY

OUR STRATEGY IS FOCUSED ON LONG-TERM VALUE CREATION

Successful business portfolio overhaul focused on growth

Strategic plan focused on profitability and cash generation

A well-balanced, prudent financial strategy 3

2

1

9

SUCCESSFUL OVERHAUL OF OUR PORTFOLIO 1

31%

50%

12%

7%

*Proportionate consolidation of EADS at 15.04%.

Major

disposals

Revenue by division

2007

2006

2011

2014

2016

2017

2015

Distribution In Hungary

Distribution in Belgium and Spain

Distribution in Switzerland and the US

10 French magazines

International magazines

French regional dailies, Virgin Megastore

Distribution in Germany

7.5% of

Le Monde Interactif

2013

7.4% of

20% of

25% of

Retail

2005

Major

acquisitions

2016

2003

EADS 36%

Press 16%

Books 8%

Lagardère Active

Broadcast 5%

*

Lagardère Media

Distribution Services 35%

10

A BALANCED PORTFOLIO SET UP FOR GROWTH AND SUSTAINABLE CASH GENERATION

1

Growth

engine

Cash

generation

today

Low High

11

INCREASING PROFITABILITY IS A PRIORITY

Consolidated recurring EBIT (€m) and operating

margin (%)

339

395

2012 2016

4.6%

5.3%

Revenue stable over the period

2

Main factors/measures

Restructuring and sale of the Distribution business.

Improved product mix and purchase conditions.

Synergies resulting from acquisitions.

Restructuring of declining activities.

Shift in business portfolio to focus on TV Production.

Revenue diversification.

Restructuring of the premium media rights business in Europe.

Portfolio rationalization.

Operating efficiency drive.

Cost control discipline.

Office and warehouse space optimized in France, in the UK and in the US.

Cost synergies resulting from acquisitions.

12

SHARP RISE IN CASH FLOW GENERATION FUELLED BY HIGH LEVEL OF INVESTMENTS

193 202 234

136

161 161

194

168

59 68

63 253 24

32

84

(34) (16) (18)

403 447

557 557

2014 2015 2016 Allocation of 2016operating cash flow

Lagardère Publishing Lagardère Travel Retail Lagardère Active Lagardère Sports and Entertainment Other

+11% +25%

2

45% investment spending

30%: ordinary dividend

25%: reduction in debt and

other*

*Includes mainly translation adjustments and payments of taxes and interest. 13

31/12/2015 31/12/2016

A WELL BALANCED, PRUDENT FINANCIAL STRATEGY

2,4x*

*Defined as the sum of (i) recurring EBIT of fully consolidated companies,

(ii) depreciation and amortisation of property, plant and equipment and

intangible assets and (iii) dividends received from equity-accounted companies.

**On a proforma basis (as per credit facility covenant), including 12 months

of Paradies’ recurring EBITDA. On a reported basis, the ratio is 2.6x.

Headroom €1,551m

€1,389m

2.2x

2.4x

**

€500m

+ €162m

3x

Leverage Ratio Net debt/ Recurring EBITDA*

1.3 1.3 1.3 1.3 1.3

9.0

6.0

2012 2013 2014 2015 2016

Dividende ordinaire Dividende extraordinaire

Historical dividends (€/share)

Ordinary dividend stable over the long term (€ per share).

Large payouts to shareholders following the one-off sale of non-strategic shareholdings.

Attractive ordinary dividend yield given the current climate of low interest rates.

***Yield based on the closing share price of €27.31 at 20 April 2017.

4.8%***

…and providing long-term viability for

an attractive dividend payout policy

Ordinary dividend Extra dividend

A tight rein on debt which allows

a €500 million investment capacity

3

14

4,980 3,715

2,066

France 28%

UK & Australia

22%

US & Canada

27%

Spain 6%

Other 17%

SUCCESSFUL PORTFOLIO OF PUBLISHING BUSINESSES WITH SOLID LEADING POSITIONS IN CORE MARKETS

2016 revenue by geographic area

*Consumer (trading and education).

Based on 2015 average exchange rates. Revenues from STM, professional markets and other activities than book publishing have been excluded when it could be isolated.

Sources: Annual reports, Internal estimates, lpsos, Nielsen Bookscan.

Ranking in core markets*

#1 #2 #3 #4 #2

Top 3 Consumer book publishers worldwide

Based on 2015 pro-forma turnover (€m) (Consumer: Trade & Education including Higher Education)

Education 17%

Illustrated Books 13%

General Literature

44%

Partworks 11%

Other 15%

2016 revenue by activity

16

GROWTH FUELLED BY ACQUISITION AND INTERNATIONAL DEVELOPMENT

959

2,264

2003 2016

234

Revenue evolution (€m) and cash flow from operations

before changes in working capital

(2003-2016)

Growth fuelled by acquisitions (2003-2016)

Revenue

Cash flow from operations before

changes in working capital

83

2009

2008

2007

2006

2004

2003

A.

2011

2013

2014

2016

2015

17

Mobile apps Exploring new opportunities: UK mobile gaming startups acquisitions for cross-fertilization with all imprints (Neon Play / Brainbow - Peak).

E-education

RIDING THE DIGITAL WAVE

E-publishing

Spearheading new educational practices: from the digital multi-support version of a textbook to enhanced classroom content including

game-changing self-assessment, solutions: acquisition of Rising Stars.

Reinforcing leadership: Bookouture / acquisition of Britain’s leading independent e-publisher.

E-books E-books contribution to Lagardère Publishing's overall revenue: 8.0% in 2016.

18

France 26%

North America

24%

Asia- Pacific

12%

HIGH GROWTH BUSINESS WITH LEADING POSITIONS IN ITS 3 SEGMENTS

2016 revenue* by geographic area

Ranking in core markets Top 10 Travel Retail operators worldwide

2016 revenue by activity

Top 5

#1 Top 10

Core Duty Free

#1

Fashion Travel Essentials

Foodservice

Duty Free & Fashion

Foodservice

Travel Essentials

0.9

4.8 1.6

0.4

2.0

4.4

5.7

4.0 3.8 3.8

2.8 2.5 2.3

2.0 1.7

€bn, pro-forma**

**Acquisitions made by Lagardère Travel Retail In 2015 consolidated at 100% for the full year (Paradies) / Sales @100%. Sources: Companies reports, The Moodie Report, Lagardère Travel Retail estimates

Travel Essentials

46%

Duty Free & Fashion

38%

Foodservice 16%

*IFRS revenue, excluding Distribution.

Europe (excl. France)

38%

20

DIVERSIFIED GROWTH PATHS

JFK airport (New York): acquisition of 17 stores

Poland: master concession won at Gdansk airport

US: acquisition of Paradies (present in more than 76 airports)

Gain of new concessions

External Growth

Organic Growth

Creation of the 3rd largest player in North America

Expansion of existing concessions

Rome: Food & Duty Free in Avancorpo Terminal

Nice: opening of new T1 with an innovative food concept

November 2016

December 2016

October 2015

April 2015

Riyad, Dammam, Djeddah: Duty Free End 2016

A strong development driven both

by organic growth and M&A

September 2015 2,853

4,162

230

278

801

508

2013 revenue Organic growth External growth 2016 revenue

+46%

*Net of contracts terminated over the period.

[Bridge sales growth (€m, revenue @100%, 2013–2016)]

New concessions*

Existing concessions

61%

39%

Hong Kong: Liquor & Tobacco (with China Duty Free Group) Early 2017

Abu Dhabi: Duty Free & Foodservice

December 2015

Geneva: Duty Free Early 2017

21

IMPROVEMENT OF CASH GENERATION BACKED BY A RESILIENT BUSINESS MODEL

Travel Retail Cash Flow from Operations*

95

121 135

188

2013 2014 2015 2016

+95%

*Travel Retail perimeter only (excluding Distribution) – Cash Flow from Operations before working capital.

**Capex Travel Retail, excluding Distribution.

Breakdown of Capex**

46 52

44

82

48 44

66

56

4,0%

3,5%

4,3% 4,4%

0,0%

1,0%

2,0%

3,0%

4,0%

0

20

40

60

80

100

120

140

160

2013 2014 2015 2016Growth CAPEX Renewal CAPEX % of revenue

22

A DIVERSIFIED BUSINESS MIX WITH SOLID LEADING POSITIONS

2016 revenue by geographic area 2016 revenue by activity

France 76%

Spain 7%

Peers Sound market positions

#1 #1 #3 #1

Magazine publisher in France

TV production group in France

Internet in France

Youth and family TV channels

in France

PRESS Radio + TV + Internet

Other

International

17%

Press 38%

TV 32%

Radio 22%

Pure Players & BtoB

8%

24

SUSTAIN PROFITABILITY AND DEVELOP PROMISING GROWTH DRIVERS

Accelerate the development of digital through content and services

e-health development

Acquisition of Grupo Boomerang TV in Spain

Development in Africa & Asia

Keewu in Senegal

Diffa*

Vibe Radio in Abidjan

LVMG in Cambodia

Secure a profitable development Reinforce audiovisual activity

Focus on the strongest print media brands

and diversify their sources of revenue

*Distribution Internationale de Films Africains / International Distribution of African Movies.

64 78

2012 2016

6.4%

margin 8.5%

margin

CAGR 2012-16

+5%

Employment protection

plan in 2013.

Voluntary redundancy

plan in 2016.

25

Germany 18%

France 21%

Asia & Australia

18%

Rest of Europe

14%

Rest of World 21%

A GLOBAL NETWORK COMBINING INTERNATIONAL EXPERTISE WITH LOCAL MARKET KNOWLEDGE

2016 revenue by geographic area 2016 revenue by activity

UK

8%

Marketing rights 44%

Other 35%

Media rights 21%

Leading Positions Competitive Landscape

#1 #1 #1

In football

in Africa, Asia

and Europe

In sponsorship

and media rights

globally

In golf globally

27

Consolidate and expand

comprehensive business on

existing territories in Football

Europe

Focus on AFC & CAF next cycles

Continue to grow the media

rights distribution portfolio,

leveraging our global platform

in tennis

Focus on Olympic Games

(dedicated team, marketing

programs…)

with AFC

A SUCCESSFUL RECOVERY PLAN TO PREPARE FOR GROWTH

PRESERVING LONG

TERM PARTNERSHIPS

YEARS

22 of continuous partnership

> Contract until 2028

> Contract until 2020

EUROPEAN

FOOTBALL

Long-term partnerships

with CAF

70

YEARS 21

of continuous partnership

Tailored partnerships

& RUGBY

CLUBS

DEVELOPING BRAND

CONSULTING AND

DIGITAL SERVICES

Brand Consulting

Acquisition of EKS (specialized

bid consultancy agency), Akzio!

(sponsoring agency) and

Sponsorship 360 (activation)

Digital Services

Comprehensive digital strategies

Mobile and tablet apps for

rights-holders

Social apps & activations for

rights-holders and brands

Production & management

of digital content

STRENGHTENING CORE

SALES ACTIVITIES

(33)

20

2012 2016

n.m. 3.9%

Division returned to profitability

in 2014

28

GROUP PERFORMANCE

IN H1 2017

HIGHLIGHTS

(€m) H1 2016 H1 2017

Revenue 3,431 3,306

Recurring EBIT* 101 136

Group operating margin* 2.9% 4.1%

Profit – Group share 44 29

Adjusted profit – Group share* 65 72

Free cash flow* /

** 56 (67)

Net debt* at end of period*** (1,389)*** (1,677)

*Alternative Performance Measure (APM) – See definitions on slides 53 and 54.

**Free cash flow impacted by +€9m in H1 2016 and +€23m in H1 2017 of interest paid/received following a change in accounting

method related to the consolidated statement of cash flows (see note 1.1 to the interim consolidated financial statements).

***Net debt as of 31 December 2016.

-3.6% consolidated

+5.4% like-for-like*

+10.8%

+€35m

+1.2pts

Growth lifted by good momentum at Travel Retail and brisk activity at Lagardère Publishing

Profitability fuelled by a favourable calendar at Lagardère Sports and Entertainment

Cash flow from operations up by 8.3% reflecting the good operating performance

Free cash flow negatively impacted by working capital seasonality

30

LAGARDÈRE PUBLISHING: ACTIVITY

*% of revenue in H1 2016.

France 26%

UK & Australia

21%

US & Canada

29%

Spain 5%

Other 19%

28%*

21%*

19%*

5%*

27%*

H1 2017 revenue by geographic area

Education 13%

Illustrated Books

11%

General Literature

45%

Partworks 14%

Other 17%

13%*

43%*

14%*

14%*

H1 2017 revenue by activity

16%*

36

172

41

3.7%

13.3%

4.0%

H1 2016 H2 2016 H1 2017

Change in recurring EBIT (€m) and operating margin (%)

31

LAGARDÈRE TRAVEL RETAIL: ACTIVITY


Duty Free & Fashion

38%

Travel Essentials

45%

Wholesale Distribution

1%

Foodservice

16%

18%*

30%*

13%*

39%*

H1 2017 revenue by activity

France 24%

Belgium 0%

Eastern Europe

18%

Spain 2% Italy

9%

0%*

22%*

3%*

21%*

17%*

12%*

10%*

8%* 7%*

US & Canada 24%

Middle East 1%

H1 2017 revenue by geographic area

Asia-Pacific

11%

Other Western

Europe

11%


9 4

27

68

32

H1 2016 H2 2016 H1 2017

2.0%

2.9%

1.8%

4.1%

1.6%

Travel Retail

Distribution

32

LAGARDÈRE ACTIVE: ACTIVITY


France 76%

Spain 7%

Other International

17% 17%*

76%* 7%*

Press 41%

TV 29%

Radio 23%

22%*

29%*

40%*

9%*

Pure Players

& BtoB

7%

H1 2017 revenue by geographic area H1 2017 revenue by activity

33 45

32

7.6%

9.4%

8.0%

H1 2016 H2 2016 H1 2017


33

LAGARDÈRE SPORTS AND ENTERTAINMENT: ACTIVITY

20 20



Marketing rights 46%

Other 32%

34%*

48%*

18%*

Media rights 22%

Germany 23%

France 23%

Asia & Australia

15%

Rest of World 23%

16%*

7%*

21%*

27%* 16%*

13%*

UK

5%

Rest of Europe 11%

H1 2017 revenue by geographic area H1 2017 revenue by activity

5 15 35

2.1% 5.3%

H1 2016 H2 2016 H1 2017

13.6%

34

CONSOLIDATED STATEMENT OF CASH FLOWS

*Impacted by +€9m in H1 2016 and +€23m in H1 2017 of interest paid/received following a change in accounting policy

related to the consolidated statement of cash flows

**Including €2m of interest received in H1 2016 and €3m in H1 2017.

(€m) H1 2016 H1 2017

Cash flow from operations before changes in working capital 181 196

Changes in working capital (153) (231)

Income taxes paid (27) (50)

Net cash from (used in) operating activities* 1 (85)

Purchase of property, plant & equipment and intangible assets (133) (131)

Disposals of property, plant & equipment and intangible assets 188 149

Free cash flow* 56 (67)

Purchase of investments (89) (37)

Disposals of investments** 100 3

Net cash from (used in) operating & investing activities 67 (101)

Dividend paid and other (244) (161)

Interest paid (11) (26)

Change in net debt (188) (288)

Up 8.3%

Traditional working capital

seasonality impacted by

expected reversal from 2016

(Lagardère Publishing)

Sustained strong level

of investment

Disposal of real estate properties

35

€469m €13m

€132m

€14m

€497m €497m

€808m

€756m

€1,250m Authorised

credit lines (1):

Cash (2):

FINANCING POLICY

Delivering a leverage ratio of close to 2.5x thanks to tight rein on debt and the favourable impact of recurring EBITDA.

30/06/2016 31/12/2016 30/06/2017

€1,389m

2.8x

**

Leverage ratio Net debt/Recurring EBITDA*

€1,739m

2.2x 2.6x

€1,677m

*Alternative Performance Measure (APM) – See definitions on slides 53 and 54.

**On a proforma basis (as per credit facility covenant), including

12 months of Paradies’ recurring EBITDA.

Bond matured in October 2017 was refinanced ahead of term at attractive conditions with the €300m June issue, while extending the debt maturity.

(1) Group credit facility excluding authorised credit lines at divisional level.

(2) Short-term investments and cash.

(3) €500m at 2% maturing in September 2019.

(4) €500m at 2,75% maturing in April 2023 & €300m at 1,625% maturing in June 2024.

€6m

Bonds

Bank loans and other

Commercial paper

36

(3)

(4)

(€m) Q3 At

30 September

2017 revenue 1,852 5,158

2016 revenue 1,976 5,407

Consolidated growth -6.3% -4.6%

Like-for-like growth* +2.2% +4.2%

UPDATE: Q3 2017 REVENUE

After a solid first-half performance,

the Lagardère group continued

its like-for-like growth momentum,

buoyed by good results at

Lagardère Travel Retail.

*Alternative Performance Measure (APM). See definition on slide 53. 37

GUIDANCE

2017 GUIDANCE

“Group recurring EBIT growth is expected to be between 5% and 8% versus 2016, at

constant exchange rates and excluding the impact from disposals of Distribution activities.”

39

APPENDIX: BUSINESS UPDATES

PERSEUS ACQUISITION

Date of creation: 1996

Date of acquisition: 1st April 2016

2015 revenue: ≈ €90m

Activities: Non-fiction / Backlist publishing programs

9 imprints: Avalon Books, Basic Books, DACapo Press, Public Affairs, Running Press…

Market Positionning: Major general trade publisher in the US

Markets: US + UK

Synergies: The synergies for us will come to finding our own way out of the global Perseus infrastructure and running the business through our own infrastructure, which will take about 18 months.

EXPANSION OF NON-FICTION AND BACKLIST PUBLISHING PROGRAMS

41

KEY FEATURES AND RATIOS OF TENDER OFFERS IN THE AIRPORT TRAVEL RETAIL ENVIRONMENT

Contracts are awarded through tender offer processes where travel retail operators answer RFPs on “packages” depending on the retail space location and / or the product line targeted

✓

Duty Free & Fashion Travel Essentials Foodservice

Surface

(sqm)

Capex

(€/sqm)

Length

(years)

Rent

(% of sales)

Exclusivity

500 – 10,000 30 – 200 50 – 300

3,000 – 5,000

(incl. brand contrib.) 1,000 – 3,000

2,000 – 5,000 (incl. kitchen)

5 – 10 5 – 7 7 – 10

15 – 45 8 – 30 10 – 35

Rare (de facto in some cases)

1) Ratios 90% within standard deviation from the mean 2) MG could be fixed, indexed on traffic and/or inflation, monthly or annual

Most of the time supported by a Minimum Guaranteed(2)

Main ratios(1)

Business Line

*Other mainly includes: travel accessories, gifts & souvenirs and convenience products (phone cards, lottery, …).

[in €m, revenue@100% 2011-2016]

A favourable product mix evolution

TRAVEL RETAIL ORGANIC GROWTH DRIVERS

17% 15% 14% 15%

16% 14%

10% 10%

7% 10%

15% 20%

5% 6% 10%

10% 15% 16%

16% 14%

9% 9% 10%

9%

25% 24% 19% 17%

6% 6% 6% 5%

2011 2013 2015 2016

Liquor

Tobacco

Gourmet food & Confectionary

Fashion Food & Beverage

Print

Other*

€2.3bn €2.9bn €3.6bn €4.2bn CAGR

+12%

CAGR

+12% CAGR

+16%

Perfume & Cosmetics

43

GROWTH HAS BEEN DRIVEN BY THE AWARD OF MAJOR TENDER OFFERS IN ALL THREE BUSINESSES…

Focus on major airport tender offers won since 2014

Luxembourg Auckland

Krakow Hong Kong

Abu Dhabi Riyadh & Dammam

& Jeddah

2015 2014 2017

Award date

Warsaw T1

Reykjavik

Melbourne T4

Phoenix

Gdansk

2016

Hong Kong

Geneva

Prague

44

… AND BY SELECTIVE M&A OPERATIONS

Focus on M&A operations performed in 2014 and 2016

Coffee Fellows

Closed in January 2014

18 PoS in German train stations

Operations in Foodservice

Annual sales: €10m

Inflight Service activities in

Poland and Northern Ferries

Signed in October 2016

9 PoS in airports and seaport

Operations in Duty Free


Gerzon

Closed in January 2014

12 PoS in Schiphol airport

Operations in Fashion


Airest

Closed in April 2014

200 PoS in 11 countries

Operations mainly in Foodservice


Saveria

Closed in April 2015

17 PoS located at JFK T4

Operations in Fashion & Conf.


Paradies

Closed in October 2015

520 PoS located in 75 airports

Operations in the 3 businesses


45

Source: Paradies internal data.

PARADIES LAGARDÈRE: CREATING A REGIONAL LEADER

Paradies

Lagardère

2015 key

figures

#3 in North

America

100 airports

6,000 employees

$770m revenue

A new entity managed

by an experienced

leadership team

A unique and

complementary North

American footprint

A brand portfolio tailor

made for the North

American market

A strong and

long-lasting relationship

with landlords

Overview of Paradies Lagardère

46

ABU DHABI INTERNATIONAL AIRPORT: A MAJOR STEP IN MIDDLE-EAST

Source: Lagardère Travel Retail internal data.

10-year contract on core duty free categories, confectionery and fine foods

13 PoS over 3,000 sqm

10-year estimated cumulated revenue: €3bn

9 Food and Beverage contracts awarded in April 2016

Key

figures

Le Club iconic shop Multi-category shops

Overview of Abu Dhabi contract awarded

50/50 joint venture created

to bid and run operations

47

ELLE BRAND: REVENUE DIVERSIFICATION

48

2017

1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER

FOOTBALL

AFRICA

AFCON

WORLD CUP 2018 QUALIFIERS

U20 AFCON U17 AFCON

SUPER CUP CONFEDERATION CUP & AFRICAN CHAMPIONS LEAGUE

FOOTBALL

EUROPE

FOOTBALL SEASONS 16/17 (FRANCE, GERMANY & UK) FOOTBALL SEASONS 17/18 (FRANCE, GERMANY & UK)

FOOTBALL SEASON 2017 IN SWEDEN

FOOTBALL

ASIA

AFC CHAMPIONS LEAGUE + AFC CUP

2018 WORLD CUP QUALIFIERS

AFC WOMEN U16 AFC WOMEN U19

AFC PRESIDENT'S CUP

AFC FUTSAL CLUB COMPETITION

GOLF SINGAPORE OPEN NORDEA MASTER AUSTRALIA OPEN

TENNIS ATP + WTA BASTAD & CITI OPEN WTA FINALS SINGAPORE

& STOCKHOLM OPEN

2017 SPORTS EVENTS CALENDAR

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

2017

49

APPENDIX: FINANCIAL UPDATES

PROACTIVE, MEASURED MANAGEMENT OF OUR ASSETS...

*Disposals include the sale of interests in EADS (€2,272m) and Canal+ France (€1,017m).

**Defined as the sum of (i) recurring EBIT, (ii) depreciation, amortisation and impairment, and (iii) dividends received from equity-accounted companies.

Cumulative cash flows from

operations and disposals Cumulative utilisation of cash

Cumulative cash flows from operations and disposals in 2006-2016 (€m)

Leverage ratio: Net debt/recurring EBITDA** 2.4x 2.2x

7,308

38%

4,553

22%

37%

3%

Cash flows from

operations

Disposals* Shareholder

return

Organic

growth

Acquisitions

Other

2006 2016

2006-2016 cum. cash flows: €11.9bn

51

AN EXCELLENT SHAREHOLDER RETURN OVER THE LAST 5 YEARS

100

*Source: Bloomberg (Total Return Index [gross dividend]).

Shareholder return*

2012 2013 2014 2015 2016 2017

Indexes rebased (100 at 2 January 2012)

Lagardère CAC 40 STOXX Europe 600 Media Dufry

317

220

198

Lagardère share: +217%

CAC 40: +98% STOXX Europe 600 Media: +120% Dufry: +85%

185

52

DEFINITIONS (1/2)

Lagardère uses alternative performance indicators which serve as key measures of the Group's operating and financial performance. These indicators are tracked by the Executive Committee in order to assess performance and manage the business, as well as by investors in order to monitor the Group's operating performance, along with the financial metrics defined by the IASB. These indicators are calculated based on elements taken from the consolidated financial statements prepared under IFRS and a reconciliation with those accounting items is provided either in this presentation or in the notes to the consolidated financial statements.

The like-for-like change in revenue is calculated by comparing:

• H1 2017 revenue to exclude companies consolidated for the first time during the period, and H1 2016 revenue to exclude companies divested in H1 2017;

• H1 2017 and H1 2016 revenue based on H1 2016 exchange rates.

(See reconciliation in note 1.2 to the consolidated financial statements for the six months ended 30 June 2017)

Recurring EBIT. The Group's main performance indicator is recurring operating profit of fully consolidated companies (Group recurring EBIT), which is calculated as follows:

Profit before finance costs and tax excluding:

• Income (loss) from equity-accounted companies before impairment losses;

• Gains (losses) on disposals of assets;

• Impairment losses on goodwill, property, plant and equipment, intangible assets and investment in equity-accounted companies;

• Net restructuring costs;

• Items related to business combinations:

- Acquisition-related expenses;

- Gains and losses resulting from acquisition price adjustments and fair value adjustment due to changes in control;

- Amortisation of acquisition-related intangible assets.

• Specific major disputes unrelated to the Group's operating performance.

(See reconciliation in note 3 to the consolidated financial statements for the six months ended 30 June 2017)

53

DEFINITIONS (2/2)

Operating Margin is calculated by dividing Recurring EBIT of fully consolidated companies (Group recurring EBIT) by Revenue.

Recurring EBITDA over a rolling 12-month period is calculated as recurring EBIT of fully consolidated companies (Group recurring EBIT) plus dividends received from equity-accounted companies, less amortisation and depreciation charged against intangible assets and property, plant and equipment.

Adjusted profit – Group share is calculated on the basis of profit - Group share, excluding non-recurring/non-operating items, net of tax and minority interests, as follows:

Profit - Group share excluding:

• Gains (losses) on disposals of assets;

• Impairment losses on goodwill, property, plant and equipment, intangible assets and investments in equity-accounted companies;

• Net restructuring costs;

• Items related to business combinations:

- Acquisition-related expenses;

- Gains and losses resulting from purchase price adjustments and fair value adjustments due to changes in control;

- Amortisation of acquisition-related intangible assets.

• Specific major disputes unrelated to the Group's operating performance;

• Tax effects of the above items, including the tax on dividends paid in France.

Free cash flow is calculating as cash flow from operations plus net cash flow relating to acquisitions and disposals of intangible assets and property, plant and equipment.


Net debt is calculated as the sum of the following items: Short-term investments and cash and cash equivalents, Financial instruments allocated as hedges of debt, Non-current debt and Current debt


54

LAGARDÈRE IR TEAM AND CALENDAR

IR team details

Florence Lonis

Chief of Investor Relations

Tel: +33 1 40 69 18 02

[email protected]

Dounia Amouch

Investor Relations Officer

Tel: +33 1 40 69 67 88

[email protected]

Sophie Reille

Assistant

Tel: +33 1 40 69 19 22

[email protected]

Address: 42 rue Washington - 75408 Paris - France

Tickers: Bloomberg (MMB FP), Reuters (LAGA.PA)

Calendar (all time is CET)

• Publication of full-year 2017 revenue 8 February 2018 at 8:00 a.m. (conference call at 10:00 a.m.).

• Publication of full-year 2017 results 8 March 2018 at 5:35 p.m.

55

investor presentation - lagardere.com · distribution in hungary distribution in belgium and spain...

Documents