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INVESTORPRESENTATION
January 2018
DISCLAIMER
Certain statements contained in this document are forward-looking statements (including objectives and trends), which address our vision of thefinancial condition, results of operations, strategy, expected future business and financial performance of Lagardère SCA. These data do notrepresent 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”, “isdesigned to”, “with the intent”, “potential”, “plan” and other words of similar import are intended to identify forward-looking statements. Suchstatements 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 businessopportunities.
Although Lagardère SCA believes that the expectation reflected in such forward-looking statements are reasonable, such statements are notguarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks anduncertainties, 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 marchésfinanciers 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 orcorrectness of such forward-looking statements and Lagardère SCA, as well as its affiliates, directors, advisors, employees and representativesaccept no responsibility in this respect.
Accordingly, we caution you against relying on forward-looking statements. The forward-looking statements abovementioned are made as of thedate of this document and neither Lagardère SCA nor any of its subsidiaries undertake any obligation to update or review such forward-lookingstatements whether as a result of new information, future events or otherwise. Consequently neither Lagardère SCA nor any of its subsidiaries areliable 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 worldwidemiddle class, happy to travel
and experience worldwidecultural products
International offering adjusted to local specificities: shops, sport events,
medias and entertainmentNomadism, globalisation of travel: increase
in PAX
Consumption
Digitalisation
Glocalisation
A FAST-CHANGING GLOBAL ENVIRONMENT SHAPED BY 4 KEY GROWTH DRIVERS
5
Assemblée Généraledu 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
Discretionary categories are showing the fastest growth
50% 31%
• No. 3 worldwide in TravelRetail
• Robust expertise in threebusiness lines
• Leader in football in Africa,Asia and Europe
• Leader in sponsorship andmedia 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 digitalsector
12% • No. 1 in TV Production inFrance
• One of France's leadingInternet and mobile mediagroups
• Major player in Press andRadio in France
A DIVERSIFIED GROUP WITH LEADING BRANDS AND MARKET POSITIONS
2016 revenue breakdown by region
France30%
Europe39%
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 strategy3
2
1
9
SUCCESSFUL OVERHAUL OF OUR PORTFOLIO1
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 Switzerlandand the US
10 French magazines
International magazines
French regional dailies, Virgin Megastore
Distribution in Germany7.5% of
Le Monde Interactif
20137.4% of 20% of 25% of
Retail
2005
Major acquisitions
2016
2003
EADS36%
Press16%
Books8%
Lagardère Active
Broadcast5%
*
Lagardère Media
Distribution Services35%
10
A BALANCED PORTFOLIO SET UP FOR GROWTH AND SUSTAINABLE CASH GENERATION
1
Growthengine
Cashgeneration
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 234136
161 161194
168
59 6863
25324 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 andintangible assets and (iii) dividends received from equity-accounted companies.
**On a proforma basis (as per credit facility covenant), including 12 monthsof 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 RatioNet debt/ Recurring EBITDA*
1.3 1.3 1.3 1.3 1.3
9.06.0
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 €26.73 at 02 January 2018.
4.9%***
…and providing long-term viability for an attractive dividend payout policy
Ordinary dividend Extra dividend
A tight rein on debt which allowsa €500 million investment capacity
3
14
4,9803,715
2,066
France28%
UK & Australia
22%
US & Canada
27%
Spain6%
Other17%
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 worldwideBased on 2015 pro-forma turnover (€m)
(Consumer: Trade & Education including Higher Education)
Education17%
Illustrated Books13%
General Literature
44%
Partworks11%
Other15%
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 operationsbefore changes in working capital
(2003-2016)
Growth fuelled by acquisitions (2003-2016)
RevenueCash flow from operations beforechanges 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
France26%
North America
24%
Asia-Pacific
12%
HIGH GROWTH BUSINESS WITH LEADING POSITIONS IN ITS 3 SEGMENTS
2016 revenue* by geographic area
Ranking in core marketsTop 10 Travel Retail operators worldwide
2016 revenue by activity
Top5 #1 Top
10
Core Duty Free
#1
FashionTravel Essentials
Foodservice
Duty Free & FashionFoodserviceTravel 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%
Foodservice16%
*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 concessionsRome: 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 FreeEnd 2016
A strong development driven both by organic growth and M&A
September 20152,853
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 & FoodserviceDecember 2015
Geneva: Duty FreeEarly 2017
21
IMPROVEMENT OF CASH GENERATION BACKED BY A RESILIENT BUSINESS MODEL
Travel Retail Cash Flow from Operations*
95
121135
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**
4652
44
8248 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
France76%
Spain7%
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 FranceLa partie de l'image avec l'ID de relation rId25 n'a pas été trouvé dans le fichier.
PRESS Radio + TV + Internet
OtherInternational
17%Press38%
TV32%
Radio22%
Pure Players & BtoB8%
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 redundancyplan in 2016.
25
Germany18%
France21%
Asia & Australia
18%
Rest of Europe14%
Rest of World21%
A GLOBAL NETWORK COMBINING INTERNATIONAL EXPERTISE WITH LOCAL MARKET KNOWLEDGE
2016 revenue by geographic area 2016 revenue by activity
UK8%
Marketing rights44%
Other35%
Media rights21%
Leading PositionsCompetitive Landscape
#1 #1 #1
In footballin 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 platformin tennis
Focus on Olympic Games (dedicated team, marketing programs…)
with AFC
A SUCCESSFUL RECOVERY PLAN TO PREPARE FOR GROWTH
PRESERVING LONG TERM PARTNERSHIPS
YEARS22 of continuous partnership
> Contract until 2028
> Contract until 2020
EUROPEANFOOTBALL
Long-term partnerships
with CAF
70
YEARS21 of continuous partnership
Tailored partnerships
& RUGBYCLUBS
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 2017Revenue 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 performanceFree cash flow negatively impacted by working capital seasonality
30
LAGARDÈRE PUBLISHING: ACTIVITY
*% of revenue in H1 2016.
France26%
UK & Australia
21%
US & Canada
29%
Spain5%
Other19%
28%*
21%*
19%*
5%*
27%*
H1 2017 revenue by geographic areaEducation
13%
Illustrated Books
11%
General Literature
45%
Partworks14%
Other17%
13%*
43%*
14%*
14%*
H1 2017 revenue by activity
16%*
36
172
413.7%
13.3%
4.0%
H1 2016 H2 2016 H1 2017
Change in recurring EBIT (€m) and operating margin (%)
31
LAGARDÈRE TRAVEL RETAIL: ACTIVITY
*% of revenue in H1 2016.
Duty Free & Fashion
38%
Travel Essentials
45%
Wholesale Distribution
1%
Foodservice16%
18%*
30%*
13%*
39%*
H1 2017 revenue by activity
France24%
Belgium0%
Eastern Europe
18%
Spain2%Italy
9%
0%*
22%*
3%*
21%*
17%*
12%*
10%*
8%* 7%*
US & Canada24%
Middle East1%
H1 2017 revenue by geographic areaAsia-Pacific
11%
Other WesternEurope
11%
Change in recurring EBIT (€m) and operating margin (%)
9 4
27
68
32
H1 2016 H2 2016 H1 2017
2.0%2.9%
1.8%
4.1%
1.6%
Travel RetailDistribution
32
LAGARDÈRE ACTIVE: ACTIVITY
*% of revenue in H1 2016.
France76%
Spain7%
Other International
17%17%*
76%*7%*
Press41%
TV29%
Radio23%
22%*
29%*
40%*
9%*
Pure Players& BtoB
7%
H1 2017 revenue by geographic area H1 2017 revenue by activity
33 4532
7.6%9.4%
8.0%
H1 2016 H2 2016 H1 2017
Change in recurring EBIT (€m) and operating margin (%)
33
LAGARDÈRE SPORTS AND ENTERTAINMENT: ACTIVITY
20 20
Change in recurring EBIT (€m) and operating margin (%)
*% of revenue in H1 2016.
Marketing rights46%
Other32%
34%*
48%*
18%*
Media rights22%
Germany23%
France23%
Asia & Australia
15%
Rest of World23%
16%*7%*
21%*
27%*16%*
13%*
UK5%
Rest of Europe11%
H1 2017 revenue by geographic area H1 2017 revenue by activity
5 1535
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 2017Cash flow from operations before changes in working capital 181 196Changes 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
€1,250mAuthorised
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 ratioNet 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 Juneissue, 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 otherCommercial paper
36
(3)
(4)
(€m) Q3At
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
Contracts are awarded through tender offer processes where travelretail operators answer RFPs on “packages” depending on the retail spacelocation 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 mean2) 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
KEY FEATURES AND RATIOS OF TENDER OFFERS IN THE AIRPORT TRAVEL RETAIL ENVIRONMENT
42
*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
FashionFood & Beverage
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
LuxembourgAuckland
Krakow Hong Kong
Abu Dhabi Riyadh & Dammam & Jeddah
20152014 2017Award 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 Annual sales: €20m
Gerzon
Closed in January 2014
12 PoS in Schiphol airport Operations in Fashion
Annual sales: €55m
Airest
Closed in April 2014
200 PoS in 11 countries Operations mainly in Foodservice
Annual sales: €200m
Saveria
Closed in April 2015
17 PoS located at JFK T4 Operations in Fashion & Conf.
Annual sales: €20m
Paradies
Closed in October 2015
520 PoS located in 75 airports Operations in the 3 businesses
Annual sales: €480m
45
Source: Paradies internal data.
PARADIES LAGARDÈRE: CREATING A REGIONAL LEADER
ParadiesLagardère2015 key figures
#3in North America
100airports
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 shopMulti-category shops
Overview of Abu Dhabi contract awarded
50/50 joint venture created to bid and run operations
47
ELLE BRAND: REVENUE DIVERSIFICATION
48
2018 SPORTS EVENTS CALENDAR
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2018
49
FOOTBALL AFRICA
CHAN 2018 AFCON 2019 QUALIFIERS
WOMEN AFCON
SUPER CUP CHAMPIONS LEAGUE & CONFEDERATION CUP
FOOTBALL EUROPE FIFA WORLD CUP 2018
FOOTBALL ASIA
AFC CHAMPIONS LEAGUE + AFC CUP
AFC U23 AFC WOMEN AFC U16 / U19
AFC FUTSAL AFF 2018
GOLF SINGAPORE OPEN NORDEA MASTER AUSTRALIA OPEN
TENNIS ATP + WTA BASTAD & CITI OPENWTA FINALS SINGAPORE
& STOCKHOLM OPEN
OLYMPIC GOLD COAST 2018 COMMONWEALTH GAMES
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** 2.4x2.4x 2.2x2.2x
7,30838%
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
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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 indicatorsare 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)
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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.
(See reconciliation in note 3 to the consolidated financial statements for the six months ended 30 June 2017)
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
(See reconciliation in note 15 to the consolidated financial statements for the six months ended 30 June 2017)
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LAGARDÈRE IR TEAM AND CALENDAR
IR team details
Florence LonisChief of Investor RelationsTel: +33 1 40 69 18 02flonis@lagardere.fr
Dounia AmouchInvestor Relations OfficerTel: +33 1 40 69 67 88damouch@lagardere.fr
Sophie ReilleAssistantTel: +33 1 40 69 19 22sreille@lagardere.fr
Address: 42 rue Washington - 75408 Paris - France
Tickers: Bloomberg (MMB FP), Reuters (LAGA.PA)
Calendar(all time is CET)
• Publication of full-year 2017 revenue8 February 2018 at 8:00 a.m. (conference call at 10:00 a.m.).
• Publication of full-year 2017 results8 March 2018 at 5:35 p.m.
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