INVESTOR PRESENTATION - Lagardere.com · Distribution In Hungary Distribution in Belgium and Spain...
Transcript of INVESTOR PRESENTATION - Lagardere.com · Distribution In Hungary Distribution in Belgium and Spain...
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INVESTOR
PRESENTATION
December 2017
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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.
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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
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GROUP PROFILE
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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
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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%
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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%
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GROUP STRATEGY
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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
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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%
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A BALANCED PORTFOLIO SET UP FOR GROWTH AND SUSTAINABLE CASH GENERATION
1
Growth
engine
Cash
generation
today
Low High
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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.
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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
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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
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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
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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
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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.
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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%
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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
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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
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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%
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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.
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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
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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
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GROUP PERFORMANCE
IN H1 2017
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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
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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 (%)
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LAGARDÈRE TRAVEL RETAIL: ACTIVITY
*% of revenue in H1 2016.
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%
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 Retail
Distribution
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LAGARDÈRE ACTIVE: ACTIVITY
*% of revenue in H1 2016.
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
Change in recurring EBIT (€m) and operating margin (%)
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LAGARDÈRE SPORTS AND ENTERTAINMENT: ACTIVITY
20 20
Change in recurring EBIT (€m) and operating margin (%)
*% of revenue in H1 2016.
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%
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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
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€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)
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(€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
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GUIDANCE
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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.”
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APPENDIX: BUSINESS UPDATES
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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
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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
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*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
Other*
€2.3bn €2.9bn €3.6bn €4.2bn CAGR
+12%
CAGR
+12% CAGR
+16%
Perfume & Cosmetics
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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
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… 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
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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
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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
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ELLE BRAND: REVENUE DIVERSIFICATION
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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
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APPENDIX: FINANCIAL UPDATES
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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
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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 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)
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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 Lonis
Chief of Investor Relations
Tel: +33 1 40 69 18 02
Dounia Amouch
Investor Relations Officer
Tel: +33 1 40 69 67 88
Sophie Reille
Assistant
Tel: +33 1 40 69 19 22
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.
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