FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère

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FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
FULL-YEAR
2018 RESULTS
 13 MARCH 2019
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

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’s 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
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
HIGHLIGHTS

Full-year 2018 results
   13 March 2019
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

HIGHLIGHTS

                                  (€m)                                                            2017*            2018
                                                                                                                           +2.5% consolidated
                                  Revenue                                                          7,084          7,258    +3.3% like-for-like**
  Solid performance
   from Travel Retail             Group recurring EBIT**                                             399             401
   and Sports &
   Entertainment                  Group operating margin**                                         5.6%            5.5%
   divisions
                                  Profit – Group share                                               176             194
  Due to the absence             Adjusted profit – Group share**                                    214             222
   of curriculum
   reform, lower                  Free cash flow**                                                   283             471
   performance from
   Publishing
                                  Net debt at end of year**                                     (1,368)         (1,375)
  Free cash flow
                                  Earnings per share (in €)                                         1.36            1.49
   substantially
   improved
                                  Ordinary dividend per share (in €)                                1.30        1.30***

                                 * Restated for IFRS 15 using the retrospective method.
                                 ** Alternative Performance Measure (APM) – See Glossary on slides 50/51.
                                 *** Ordinary dividend that will be recommended at the General Meeting on 10 may 2019.
                                                                                                                                                   4
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

GROUP RECURRING EBIT
                                                                            +2.1%

   +€403m                                               +€396m                           +€405m                                +€401m

                        -€4m              -€3m                               +€9m                          +€1m        -€5m

    2017 Group         IFRS 15**        Impact of          2017             Business         2018         HBF impact    FX      2018 Group
  recurring EBIT*                      disposals***     comparable         performance   comparable****                       recurring EBIT*

 * Alternative Performance Measure (APM) – See Glossary on slides 50/51.
 ** Impact of IFRS 15.
 *** Disposals in 2018: Radio businesses in Eastern Europe, MonDocteur and Doctissimo.
 **** Calculated using 2017 exchanges rates.                                                                                                    5
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
PERFORMANCE
 BY DIVISION

Full-year 2018 results
   13 March 2019
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

LAGARDÈRE PUBLISHING: ACTIVITY
             2018 revenue by geographic area                       2018 revenue by activity
                                                                                    Education
                          Other          France                     Other             14%
                          18%             28%                       17%                 16%*
                       19%*                 29%*                   16%*
                                                                                          Illustrated
                  Spain                                    Partworks                         Books
                   6%                                         12%                             13%
                 6%*                                        12%*                                  13%*

                    US &                  UK &                                           General
                   Canada                Australia                                      Literature
                    29%                    19%                                             44%
                  27%*                       19%*                                               43%*

€2,252m (down 1.6% on a consolidated basis and down 1.2% like-for-like).
 €40m negative currency impact partially offset by a €30m positive scope effect.
 Business down slightly, due to the absence of curriculum reform in France, Spain and the UK, partially
  offset by a good performance in General Literature in the US and the UK.
* % of revenue in 2017.                                                                                    7
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

LAGARDÈRE PUBLISHING: PROFITABILITY

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

                                            9.2%
                                                                 8.4%

                                             210                 190

                                             2017                2018
 Profitability down slightly.
 • Negative currency effect.
 • Absence of education reforms weighed on profitability, as Education has a higher operating margin.
 • Negative prior-year comparison basis in the Illustrated segment (Astérix et la Transitalique released
   in 2017).
 • Partially offset by good momentum in General Literature and contribution of recent acquisitions in the UK.   8
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

LAGARDÈRE TRAVEL RETAIL: ACTIVITY
             2018 revenue by geographic area                      2018 revenue by activity

                 US & Canada             Asia-Pacific
                     21%                     13%
                    22%*                       12%*

                                                            Travel                      Duty Free &
               EMEA                            France
                                                          Essentials                     Fashion
            (excluding                          24%
                                                             43%                           40%
              France)                              25%*
                                                           44%*                              39%*
                42%
             41%*

                                                                          Foodservice
                                                                             17%
                                                                               17%*

€3,673m (up 7.7% on a consolidated basis and up 8.8% like-for-like).
 €62m negative currency effect and €25m positive scope effect.
 Strong growth in France, EMEA, America and ASPAC, lifted by good sales momentum, network expansion
  and store openings, as well as robust passenger traffic.
* % of revenue in 2017.                                                                                9
FULL-YEAR 2018 RESULTS - 13 MARCH 2019 - Lagardère
Full-year 2018 results / 13 March 2019

LAGARDÈRE TRAVEL RETAIL: PROFITABILITY

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

                                                                 3.3%
                                            3.3%

                                             112                 119

                                             2017                2018

 Travel Retail profitability stable.
 • Travel Retail recurring EBIT up by €7 million buoyed mainly by organic growth and network expansion
   in EMEA. North America benefits from strong sales momentum and commercial initiatives.
 • Stable operating margin: the setup and development costs of new openings are offset by margin
   improvements in existing concessions.
                                                                                                         10
Full-year 2018 results / 13 March 2019

LAGARDÈRE ACTIVE: ACTIVITY
              2018 revenue by geographic area                                     2018 revenue by activity
                                                                                                Others
                          Other                                                                  5%
                                                                                               5%*
                          16%
                       16%*
                                                                              Lagardère                            Non-Core
                                                                               Studios                              Press
                  Spain                                  France                  24%                                 27%
                   7%                                     77%                 21%*                                     27%*
                 6%*                                         78%*

                                                                                  TV                               Press
                                                                               Channels                             15%
                                                                                 12%
                                                                                                                      15%*
                                                                               12%*
                                                                                      International
                                                                                          Radio          French
                                                                                                         Radio                Non-core business
                                                                                           3%
                                                                                                          14%                 Retained business
                                                                                        6%*
                                                                                                            14%*

€895m (down 3.6% on a consolidated basis and down 2.3% like-for-like).
 €13m negative scope effect.
 Good performance from TV Channels and Audiovisual Production partially countering a drop in advertising
  and circulation revenues at Magazine Publishing, as well as lower audience figures for the Europe 1 radio
  station.
* % of revenue in 2017 restated for IFRS 15 using the retrospective method.                                                                       11
Full-year 2018 results / 13 March 2019

LAGARDÈRE ACTIVE: PROFITABILITY

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

                                                                          8.4%
                                                             7.5%*

                                                               70         75

                                                              2017        2018

 Profitability up by 0.9 percentage points.
 • Margin improvement driven by good performance in advertising on TV Channels as well as cost saving
   measures on Magazine Publishing and Radio operations in France.
 • Partially offset by negative trends at Magazine Publishing, Europe 1 and some digital activities.
* % margin in 2017 restated for IFRS 15 using the retrospective method.                                 12
Full-year 2018 results / 13 March 2019

LAGARDÈRE SPORTS AND ENTERTAINMENT: ACTIVITY
              2018 revenue by geographic area                                    2018 revenue by activity
                                                  France                        Live Entertainment   Media rights
                          Other
                          21%                      18%                                 10%              16%
                       25%*                             18%*                           10%*                22%*

               Asia &                                      Germany             Other                          Marketing
              Australia                                      20%               27%                             rights
                17%                                            20%*           24%*                              47%
              17%*                                                                                                  44%*

                     Rest of Europe             UK
                          11%                   13%
                        12%*                      8%*

€438m (down 3.6% on a consolidated basis and down 4.1% like-for-like).
 €8m negative currency effect and €10m positive scope effect.
 2018 marked the lowest point of the four-year sporting events cycle, with the non-occurrence of the 2017
  Total Africa Cup of Nations and the 2017 Asian qualifiers for the 2018 FIFA World Cup.
 Partially offset by good performances from the Olympics division and from Football activities in Europe.
* % of revenue in 2017 restated for IFRS 15 using the retrospective method.                                                14
Full-year 2018 results / 13 March 2019

LAGARDÈRE SPORTS AND ENTERTAINMENT: PROFITABILITY

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

                                                                          6.9%

                                                             4.7%*

                                                                          30
                                                               22

                                                              2017        2018

 Recurring EBIT up and improved operating margin.
 • 2018 marked the lowest point of the four-year sporting events cycle.
 • However, improved recurring EBIT and margin, mainly driven by the development of Sponsoring activities
   and the good performance of the Olympic division.
* % margin in 2017 restated for IFRS 15 using the retrospective method.                                     15
GROUP RESULTS

 Full-year 2018 results
    13 March 2019
Full-year 2018 results / 13 March 2019

CHANGES IN REVENUE – 2018

                                                                   +232
           (€m)
                                                            +298

                                                                            -20           -19             -58        7,258
                7,084                  -27

                 2017              Lagardère              Lagardère       Lagardère    Lagardère      FX and scope     2018
               revenue*            Publishing            Travel Retail      Active     Sports and         effect     revenue
                                                                                      Entertainment

Revenue up 2.5% on a consolidated basis, up 3.3% like-for-like.
 €52m positive scope effect and €110m negative currency effect.
 Continued growth momentum powered by a solid performance at Lagardère Travel Retail, and achieved
  despite lacklustre business cycles at Lagardère Publishing and Lagardère Sports and Entertainment.
* Restated for IFRS 15 using the retrospective method.                                                                         17
Full-year 2018 results / 13 March 2019

GROUP RECURRING EBIT TO EBIT

   (€m)                                                                                                                     2017*     2018

        399 401                                                                                                                       409

                                                                                                                               275
                                                                                   205

                                                                             43
                                3       4

                                                    (41)                                    (57) (47)
                                                            (79)                                           (72) (75)

            Group            Income from
          recurring        equity-accounted         Restructuring          Gains (losses)   Impairment   Amortisation****           EBIT
            EBIT**          companies***               costs                on disposals      losses

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.
*** Before impairment losses.
**** Amortisation of acquisition-related intangible assets and expenses.                                                                     18
Full-year 2018 results / 13 March 2019

EBIT TO PROFIT – GROUP SHARE

                           (€m)                                                                          2017*     2018
                                        409

                               275

                                                                                                           176 194

                                                                       2

                                                                                     (28) (22)
                                                         (73) (59)
                                                                           (134)
                                                                                   Profit attributable
                                                     Finance costs,   Income tax      to minority          Profit – Group
                                    EBIT
                                                          net          expense         interests               share

* Restated for IFRS 15 using the retrospective method.                                                                      19
Full-year 2018 results / 13 March 2019

GROUP RECURRING EBIT TO ADJUSTED PROFIT – GROUP SHARE

   (€m)                                                                                                              2017*     2018

          399     401

                                                                                                                       214    222

                                     3        4

                                                                      (59)                         (35)    (31)
                                                             (73)               (80)    (93)
                                                                                 Income tax
            Group                 Income from                                                      Adjusted profit      Adjusted
                                                            Finance costs,   expense excluding
          recurring             equity-accounted                                                    attributable      profit – Group
                                                                 net         tax adjustments on
            EBIT**               companies***                                                       to minority          share**
                                                                              non-recurring and
                                                                                                     interests
                                                                             non-operating items

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.
*** Before impairment losses.                                                                                                          20
Full-year 2018 results / 13 March 2019

CONSOLIDATED STATEMENT OF CASH FLOWS
 (€m)                                                                                2017*      2018
 Cash flow from operations before changes in working capital                           536       505    Substantial improvement
 Changes in working capital                                                            (71)       55    attributable to Lagardère
                                                                                                        Publishing and Lagardère
 Taxes paid excluding taxes on property disposals                                      (61)      (35)   Travel Retail
 Net cash from operating activities**                                                  404       525
                                                                                                        Including €130m at
 Purchases/disposals of tangible and intangible assets***                            (246)     (237)    Lagardère Travel Retail
 Free cash flow excluding property disposals                                           158       288    with a significant portion
                                                                                                        relating to new
 Proceeds from property disposals net of tax paid and related refitting costs****      125       183    stores/concessions
 Free cash flow*****                                                                   283       471
                                                                                                        In 2018, HBF acquisition
 Purchases of investments                                                              (68)    (340)    covered by proceeds from
 Disposals of investments                                                                19      148    non-core assets disposals
 Net cash from operating and investing activities                                      234       279
 Dividend paid and other                                                             (143)     (229)
 Interest paid                                                                         (70)      (57)
 Change in net debt                                                                     21        (7)
 Net debt**                                                                         (1,368)   (1,375)

* Restated for IFRS 15 using the retrospective method.
** Before tax paid on property disposals.
*** Excluding property disposals and refitting costs.
**** See details on slide 30.
***** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                                                          21
Full-year 2018 results / 13 March 2019

CONSOLIDATED BALANCE SHEET

                (€m)                            Assets*                                                  Liabilities
                                  31 Dec. 2017**        31 Dec. 2018                          31 Dec. 2017**       31 Dec. 2018

                                                                                                                       2,001           Total equity
                                                           2,820                                   1,924
     Intangible assets                  2,867
                                                                                                                       1,375           Net debt***
                                                                                                   1,368
                                                            1,245
            Other assets                1,271                                                                          1,035           Other liabilities
                                                             699                                     956
 Assets held for sale                      6                                                                             413           Liabilities held for sale

        Working capital                 2,933               2,737                                  2,829                2,677          Working capital

                                        7,077               7,501                                  7,077               7,501
* Excluding assets included in net debt.
** Restated for IFRS 15 using the retrospective method.
*** Net of cash, cash equivalents, short-term investments and derivative instruments documented as hedges of debt. / Alternative Performance Measure (APM) – See Glossary
on slides 50/51.                                                                                                                                                            22
Full-year 2018 results / 13 March 2019

FINANCING POLICY

 A stable debt level.                                                     A stable dividend.
 HBF acquisition funded by non-core
  asset disposals (Lagardère Active
  assets and office buildings).
                                                                                  Historical dividends (€/share)
                    Leverage ratio
               Net debt/Recurring EBITDA**
                                                                                                                                   Ordinary dividend per share (€)
                                                                                                                                   Extra dividend per share (€)

           €1,368m                   €1,375m                                                      9.0
                                                                                                             6.0                                      5.7%*
             2.2x                      2.1x*
                                                                            1.3        1.3        1.3        1.3        1.3        1.3         1.3     1.3

          31/12/2017                 31/12/2018                            2011       2012       2013       2014       2015       2016         2017   2018

* On a proforma basis (as per credit facility covenant), including
12 months of HBF recurring EBITDA. On a reported basis, ratio is 2.2x.      * Dividend yield based on €22.80 closing price on 12 March 2019.
** Alternative Performance Measure (APM) – See Glossary on slide 50/51.
                                                                                                                                                                  23
Full-year 2018 results / 13 March 2019

GROUP TARGET SCOPE

                                                                                                              2018            Estimated impact        REVISED 2018
(€m)
                                                                                                         recurring EBIT          of IFRS 16*         recurring EBIT**

 Lagardère Publishing (core business)                                                                          190                     11                 201

 Lagardère Travel Retail (core business)                                                                       119                      2                 121

 Other Activities***                                                                                           (13)                     1                 (12)

 Target scope                                                                                                  296                     14                 310

 Non-retained scope – disposed                                                                                  29                                         29

 Non-retained scope – not disposed to date****                                                                  76                      2                  78

 Total Lagardère group                                                                                         401                     16                 417

* IFRS 16 impact on buildings and other only. Impact on concession contracts of Travel Retail is neutralised in REVISED Recurring EBIT.
** See Glossary on slide 52/53.
*** Other Activities includes Lagardère News (French radio, Paris Match, JDD, Elle brand licensing), Entertainment activities, Group Corporate and
Lagardère Active Corporate (to be extinguished by 2020).
**** Please refer to slide 35.                                                                                                                                          24
Full-year 2018 results / 13 March 2019

OUTLOOK

2019 RECURRING EBIT* GROWTH TARGET BASED ON TARGET SCOPE:
The Lagardère group expects 2019 recurring EBIT* growth based on the target scope to be between 4% and 6% at
constant exchange rates and excluding the acquisition of HBF.

NON-RETAINED SCOPE – NOT DISPOSED TO DATE**:
Based on constant exchange rates, the contribution to recurring EBIT in 2019 for businesses not disposed to date (which
represented €78 million in 2018) is expected to be between €80 million and €90 million on a full-year basis.

* Including IFRS 16 impact on buildings and other only. Impact on concession contracts of Travel Retail is neutralised in REVISED Recurring EBIT.
See Glossary on slide 52/53.
** Recurring EBIT for assets disposed to date is minimal, since the Press business was deconsolidated with effect from 1 January 2019 and the amounts
corresponding to the other assets are not significant.                                                                                                  25
APPENDICES TO
THE CONSOLIDATED
    ACCOUNTS

  Full-year 2018 results
     13 March 2019
Full-year 2018 results / 13 March 2019

CHANGES OF SCOPE: MAIN ITEMS

 Lagardère Publishing
 • Full consolidation in 2018 of Summersdale following the acquisition in November 2017.
 • Full consolidation in 2018 of Jessica Kingsley Publishers following the acquisition in November 2017.

 Lagardère Travel Retail
 • Acquisition of Hojeij Branded Foods (HBF), a leading Foodservice travel operator in North America,
   in November 2018.

 Lagardère Active
 •   Acquisition of 52% of Skyhigh TV, a Dutch TV production company, in March 2018.
 •   Disposal of the minority stake (42%) of Marie Claire group.
 •   Disposal of MonDocteur in July 2018.
 •   Disposal of Radio businesses in the Czech Republic, Poland, Slovakia and Romania in July 2018.
 •   Disposal of Doctissimo in October 2018.

                                                                                                           27
Full-year 2018 results / 13 March 2019

CONSOLIDATED INCOME STATEMENT

 (€m)                                                                      2017*    2018
 Revenue                                                                   7,084   7,258
 Group recurring EBIT**                                                      399     401
 Income from equity-accounted companies***                                     3       4
 Non-recurring/non-operating items                                         (127)       4
 Total EBIT                                                                  275     409
 Finance costs, net                                                         (73)    (59)
 Profit before tax                                                          202      350
 Income tax (expense) benefit                                                  2   (134)
 Profit for the period                                                      204     216
 Attributable to minority interests                                          28      22
 Profit – Group share                                                       176     194

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.
*** Before impairment losses.                                                              28
Full-year 2018 results / 13 March 2019

CONSOLIDATED STATEMENT OF CASH FLOWS

 (€m)                                                                       2017*      2018
 Cash flow from operations before changes in working capital                  536       505
 Changes in working capital                                                   (71)       55
 Income taxes paid                                                            (89)      (77)
 Net cash from operating activities                                           376       483
 Purchases of property, plant & equipment and intangible assets             (253)     (270)
 Disposals of property, plant & equipment and intangible assets***            160       258
 Free cash flow**                                                             283       471
 Purchases of investments                                                     (68)    (340)
 Disposals of investments                                                       19      148
 Net cash from operating and investing activities                             234       279
 Dividend paid and other                                                    (143)     (229)
 Interest paid                                                                (70)      (57)
 Change in net debt                                                            21        (7)
 Net debt**                                                                (1,368)   (1,375)

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.
*** Including €7m of non-property disposals in 2018 and €5m in 2017.                           29
Full-year 2018 results / 13 March 2019

FREE CASH FLOW EXCLUDING PROPERTY DISPOSALS

(€m)                                                                       2017*   2018
 Free cash flow excluding property disposals                               158     288

  Proceeds from disposals                                                  155     251
  Tax paid on disposals                                                    (28)    (42)
  Refitting costs                                                           (2)    (26)
  Proceeds from property disposals net of tax paid
                                                                           125     183
  and related refitting costs

 Free cash flow**                                                          283     471

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                  30
Full-year 2018 results / 13 March 2019

ANALYSIS OF NON-RECURRING/NON-OPERATING ITEMS IN 2018

                                                                                                 Lagardère
                                               Lagardère        Lagardère        Lagardère      Sports and       Other    Total    Total
 (€m)                                          Publishing     Travel Retail         Active   Entertainment   Activities   2018    2017*

 Group recurring EBIT**                               190              119             75              30         (13)    401      399

 Income from equity-accounted
                                                         1                  2           1                                    4        3
 companies

 Restructuring costs                                  (21)                 (6)        (44)             (8)                (79)     (41)

 Gains (losses) on disposals                                               (3)        207                            1    205        43

 Impairment losses                                                         (4)        (40)             (2)         (1)    (47)     (57)

 Amortisation of acquisition-related
                                                        (5)           (59)             (2)             (7)         (2)    (75)     (72)
 intangible assets and expenses

 EBIT                                                 165                  49         197              13         (15)    409      275

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                                                                   31
Full-year 2018 results / 13 March 2019

ADJUSTED PROFIT – GROUP SHARE

(€m)                                                                           2017*   2018

Profit for the period                                                           204    216
Restructuring costs                                                              41     79
Gains/losses on disposals                                                        -43   -205
Impairment losses on goodwill, PP&E, intangible assets and investments in
                                                                                 57     47
equity-accounted companies
Amortisation of acquisition-related intangible assets and expenses               72     75
Tax effects on the above transactions                                            -17    41
Tax paid on dividends, reimbursements and surtax in France                        -6     -
Recognition of tax loss carryforwards in France (planned sale of a building)     -40     -
Remeasurement of deferred taxes (US tax reform)                                  -19     -
Adjusted profit                                                                 249    253
o/w attributable to minority interests                                           35     31
Adjusted profit – Group share**                                                 214    222

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                      32
Full-year 2018 results / 13 March 2019

GROUP PROFILE – 2018
                     Revenue by division                          Group recurring EBIT by division
             Lagardère Sports and Entertainment                     Lagardère Sports and Entertainment
                               6%                                                  7%
              Lagardère                                             Lagardère
                Active                                                Active
                 12%                                                   18%
                                                    Lagardère                                            Lagardère
                                                    Publishing                                           Publishing
                                                      31%                                                  46%

              Lagardère                                             Lagardère
                Travel                                                Travel
                Retail                                                Retail
                 51%                                                   29%

          2017 revenue by geographic area                        2018 revenue by geographic area
                     US &                                                 US &
                    Canada                                               Canada
                     20%                          France                  21%                       France
                                                   32%                                               31%

              Eastern
              Europe                                                Eastern
               11%                                                  Europe
                                                                     11%
                   Asia-
                  Pacific                                                Asia-
                    9%                        Western                   Pacific                     Western
                            Other             Europe                      9%                        Europe
                                               24%                                Other              25%
                             4%                                                    3%
                        Emerging countries: 24%                               Emerging countries: 23%                 33
Full-year 2018 results / 13 March 2019

RECAP OF PERFORMANCE BY DIVISION – 2018
 Revenue
                                                                     Consolidated   Consolidated
                                                           2018                                    Like-for-like change*
 (€m)                                                                     change         change
 Lagardère Publishing                                    2,252              -€37m         -1.6%                  -1.2%
 Lagardère Travel Retail                                 3,673             +€261m        +7.7%                   +8.8%
 Lagardère Active                                           895             -€34m         -3.6%                  -2.3%
 Lagardère Sports and Entertainment                         438             -€16m         -3.6%                  -4.1%
 Total                                                   7,258             +€174m        +2.5%                   +3.3%

 Group recurring EBIT**
                                                                     Consolidated   Consolidated    Change at constant
                                                           2018
 (€m)                                                                     change         change        exchange rates
 Lagardère Publishing                                      190              -€20m         -9.7%                  -8.1%
 Lagardère Travel Retail                                    119             +€7m         +6.9%                   +8.0%
 Lagardère Active                                            75             +€5m         +6.8%                  +11.1%
 Lagardère Sports and Entertainment                          30             +€8m        +42.8%                 +44.1%
 Other Activities                                          (13)             +€2m         +0.3%                   -6.8%
 Total                                                     401              +€2m         +0.5%                   +2.1%
* At constant scope and exchange rates.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                                                   34
Full-year 2018 results / 13 March 2019

NON-RETAINED SCOPE RECURRING EBIT

                                                                               Estimated            REVISED2018
                                                              2018 recurring               Scope
                  (€m)                                                         impact of
                                                                                           impact
                                                                                                     recurring
                                                                  EBIT
                                                                                IFRS 16*               EBIT**

                  Lagardère Active assets                          75             0         (29)        46
Disposed
                   Disposals completed in 2018                     3              -          (3)         -
                   Disposals completed in 2019 to date             26             -         (26)         -

                   Lagardère Studios                               19             -                     19
                   TV Channels                                     23             -                     23
   Not
disposed
                   Mezzo                                            3             -                      3
 to date           Other***                                         1             -                      1
                  Lagardère Sports and Entertainment assets        30             2                     32
                   Sports                                          30             2                     32
                  Non-retained scope                              105             2        (29)         78

* IFRS 16 impact on buildings and other only.
** See Glossary on slide 52/53.
*** o/w Moneytag, Sports.fr, Label Box.                                                                           35
Full-year 2018 results / 13 March 2019

CASH FLOW STATEMENT DATA – LAGARDÈRE PUBLISHING

 (€m)                                                                     2017   2018
 Cash flow from operations before changes in working capital              227    197
 Changes in working capital                                               (63)   (14)
 Income taxes paid                                                        (60)   (40)
 Net cash from operating activities                                       104    143
 Purchases of property, plant & equipment and intangible assets           (46)   (43)
 Disposals of property, plant & equipment and intangible assets              0      1
 Free cash flow*                                                           58    101
 Purchases of investments                                                 (30)   (13)
 Disposals of investments                                                  12      1
 Net cash from operating and investing activities                          40     89

* Alternative Performance Measure (APM) – See Glossary on slides 50/51.
                                                                                        36
Full-year 2018 results / 13 March 2019

CASH FLOW STATEMENT DATA – LAGARDÈRE TRAVEL RETAIL

 (€m)                                                                     2017    2018
 Cash flow from operations before changes in working capital               207     224
 Changes in working capital                                                  1      59
 Income taxes paid                                                         (24)    (21)
 Net cash from operating activities                                        184     262
 Purchases of property, plant & equipment and intangible assets           (138)   (130)
 Disposals of property, plant & equipment and intangible assets               1       3
 Free cash flow*                                                            47     135
 Purchases of investments                                                  (18)   (308)
 Disposals of investments                                                    6       4
 Net cash from (used in) operating and investing activities                 35    (169)

* Alternative Performance Measure (APM) – See Glossary on slides 50/51.
                                                                                          37
Full-year 2018 results / 13 March 2019

CASH FLOW STATEMENT DATA – LAGARDÈRE ACTIVE

 (€m)                                                                     2017   2018
 Cash flow from operations before changes in working capital               47     21
 Changes in working capital                                               (15)   (27)
 Income taxes paid                                                        (33)   (79)
 Net cash used in operating activities                                     (1)   (85)
 Purchases of property, plant & equipment and intangible assets            (8)   (34)
 Disposals of property, plant & equipment and intangible assets              0   250
 Free cash flow*                                                           (9)   131
 Purchases of investments                                                 (12)   (12)
 Disposals of investments                                                   3    142
 Net cash from (used in) operating and investing activities               (18)   261

* Alternative Performance Measure (APM) – See Glossary on slides 50/51.
                                                                                        38
Full-year 2018 results / 13 March 2019

CASH FLOW STATEMENT DATA – LAGARDÈRE SPORTS AND ENTERTAINMENT

 (€m)                                                                      2017   2018
 Cash flow from operations before changes in working capital                61     72
 Changes in working capital                                                 18     37
 Income taxes paid                                                          (6)    (8)
 Net cash from operating activities                                         73    101
 Purchases of property, plant & equipment and intangible assets            (59)   (62)
 Disposals of property, plant & equipment and intangible assets               2      4
 Free cash flow**                                                           16     43
 Purchases of investments                                                   (6)    (1)
 Disposals of investments                                                   (3)     1
 Net cash from operating and investing activities                            7     43

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                 39
Full-year 2018 results / 13 March 2019

CONSOLIDATED BALANCE SHEET

 (€m)                                                                     31 Dec. 2017*        31 Dec. 2018
 Non-current assets                                                                 4,007                3,987
 Investments in equity-accounted companies                                             123                   73
 Current assets                                                                     2,941                2,742
 Short-term investments and cash                                                       546                 710
 Assets held for sale                                                                     6                699
 TOTAL ASSETS                                                                       7,623                8,211
 Total equity                                                                       1,924                2,001
 Non-current liabilities                                                               737                 810
 Non-current debt**                                                                 1,542                1,019
 Current liabilities                                                                3,048                2,902
                                                                                                                             Net debt**** stable at €1,375m
 Current debt***                                                                       372               1,066
                                                                                                                             (vs. €1,368m at 31 Dec. 2017)
 Liabilities associated with assets held for sale                                         0                413
 TOTAL LIABILITIES AND EQUITY                                                       7,623                8,211

* Restated for IFRS 15 using the retrospective method.
** Including €18m of long-term derivative assets at 31 December 2017 and a long-term derivative assets €5m and a long-term derivatives liabilities €1m at 31 December 2018.
*** Including €3m of short-term derivative assets at 31 December 2018 and 31 December 2017.
**** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                                                                                               40
Full-year 2018 results / 13 March 2019

OFF-BALANCE SHEET COMMITMENTS

 (€m)                                                        2017   2018
 Commitments to purchase shares from third parties
                                                               0      0
 (other than minority interests)

 Commitments given in connection with ordinary activities:
   - contract guarantees and performance bonds               361    348
   - guarantees in favour of third parties or
                                                             110     88
     non-consolidated companies
   - other commitments given                                   6      5
 Commitments received:
   - counter-guarantees of commitments given                   1      0
   - other commitments received                                2      2
 Mortgages and pledges                                         0      1

                                                                           41
Full-year 2018 results / 13 March 2019

LAGARDÈRE TRAVEL RETAIL
GUARANTEED MINIMUM PAYMENTS

 At 31 December 2018 entities forming part of Lagardère Travel Retail had guaranteed minimum future payments
  amounting to €2,450m under concession agreements.
  These payments break down as follows by maturity:

 Maturity                     2019       2020   2021   2022     2023      2024
                                                                        & beyond    Total     2017
 (€m)

 Guaranteed minimum
 payments under
                              478        423    396    343      261       549      2,450     1,876
 concession
 agreements

                                                                                                                42
Full-year 2018 results / 13 March 2019

LAGARDÈRE SPORTS AND ENTERTAINMENT
GUARANTEED MINIMUM PAYMENTS

 At 31 December 2018 entities forming part of Lagardère Sports and Entertainment had guaranteed minimum future
  payments amounting to €981m under long-term contracts for the sale of TV and marketing rights.
  These payments break down as follows by maturity:

 Maturity                     2019       2020   2021   2022    2023      2024
                                                                       & beyond    Total     2017
 (€m)

 Guaranteed minimum
 payments under
                              213        143    99     65       97       364       981      1,064
 sports rights
 marketing contracts

 At 31 December 2018 the amounts due under marketing contracts signed by these same entities with broadcasters
  and partners amounted to €1,513m, breaking down as follows by maturity:

 Maturity                     2019       2020   2021   2022    2023      2024
                                                                       & beyond    Total     2017
 (€m)

 Sports rights
 marketing contracts
 signed with                  488        357    167    133     102       266      1,513     1,550
 broadcasters and
 partners
                                                                                                                  43
Full-year 2018 results / 13 March 2019

RECURRING EBITDA – OVER 12 ROLLING MONTHS

 (€m)                                                                      2017*   2018

 Group recurring EBIT**                                                     399     401

 Depreciation and amortisation of property, plant
                                                                           +193    +202
 & equipment and intangible assets

 Amortisation of signing fees                                               +24    +17

 Dividends received from equity-accounted
                                                                             +6     +5
 companies

 Recurring EBITDA**                                                         622     625

 Recurring EBITDA** including pro forma HBF                                         654

* Restated for IFRS 15 using the retrospective method.
** Alternative Performance Measure (APM) – See Glossary on slides 50/51.                  44
Full-year 2018 results / 13 March 2019

FINANCING POLICY

 86% of gross debt funding contracted                          2019 bond refinancing will reshuffle repayment
  directly with credit investors.                                schedule positively.

                                 Bonds
                                 Bank loans & other
                                                       Authorised
                                 Commercial paper     credit lines**: €1,250m
       24%

                              62%                                                €499m
      14%                                                                                                                         €492m
                                                                                  €71m
                                                             Cash*: €710m                                                                      €297m
                                                                                 €496m                    €152m
                                                                                              €26m                     €48m
                                                                                                                                                €4m
                                                                    Available     2019         2020        2021         2022        2023       2024 &
                                                                      cash                                                                     beyond

                                                                   * Short-term investments and cash, excluding €8m of derivative assets.
                                                                   ** Undrawn Group credit facility excluding authorised credit lines at divisional level.

                                                                                                                                                        45
APPENDICES
ESTIMATED IMPACTS
 OF IFRS 16 ON 2018
  CONSOLIDATED
     ACCOUNTS

   Full-year 2018 results
      13 March 2019
Full-year 2018 results / 13 March 2019

ESTIMATED IMPACT OF IFRS 16 ON 2018 CONSOLIDATED INCOME STATEMENT
AND RELATED INDICATORS
                                                                                        IFRS 16
 (€m)                                                                                 impacts 2018
 Revenue                                                                                             -
 REVISED recurring        EBITDA*                                                                    -
 REVISED Group        recurring EBIT*                                                            +16            Buildings and other

 Income from equity-accounted companies**                                                          -1
 Non-recurring/non-operating items                                                               +42             Concessions stores

 Of which Cancellation of fixed rental expense*** - concession stores NEW                        +441
 Of which Depreciation of right-of-use asset - concession stores NEW                              -395
 Of which Gains and losses on lease modifications NEW                                               -4
 Total EBIT                                                                                      +57
 Finance costs, net                                                                                  -           o/w -€58m for concessions stores
 Lease interest expense NEW                                                                       -76
                                                                                                                 o/w -€18m for buildings and other
 Profit before tax                                                                                -19
 Income tax expense                                                                               +4
 Profit for the period                                                                            -15
 Attributable to minority interests                                                                  -           o/w -€14m for concessions stores
 Profit – Group share                                                                             -15
                                                                                                                 o/w -€1m for buildings and other
 REVISED Adjusted        profit – Group Share*                                                     -1
* Alternative Performance Measure (APM) – See Glossary on slides 52/53. / ** Before impairment losses.
*** Cancellation of fixed rental expense is equal to the repayment of the lease liability, the associated change in working capital and interest paid in the statement of cash flows.   47
Full-year 2018 results / 13 March 2019

ESTIMATED IMPACT OF IFRS 16 ON 2018 CONSOLIDATED STATEMENT
OF CASH FLOWS

 (€m)                                                                         2018
 Cash flow from operations before changes in working capital                  +533
                                                                                                                   o/w €439m for concessions stores
 Repayment of lease liabilities NEW                                           -453
                                                                                     Fixed rent payment of €529m
 Interest paid on lease liabilities NEW                                        -76                                 o/w €90m for buildings and other
 Cash flow from operations before changes in working capital*                   +4
 Changes in working capital                                                     -4
 Income taxes paid                                                               -
 Net cash from operating activities                                              -
 Purchases of property, plant & equipment and intangible assets                  -
 Disposals of property, plant & equipment and intangible assets                  -

 REVISED    Free cash flow*                                                      -

  Purchases of investments                                                       -
  Disposals of investments                                                       -
 Net cash from operating & investing activities                                  -
  Dividend paid and other                                                        -
  Interest paid                                                                  -
 Change in net debt                                                              -

 Net debt*                                                                       -

* Alternative Performance Measure (APM) – See Glossary on slides 51 and 53.                                                                           48
Full-year 2018 results / 13 March 2019

ESTIMATED IMPACT OF IFRS 16 ON 2018 CONSOLIDATED BALANCE SHEET

 (€m)                                    31 Dec. 2018   (€m)                                      31 Dec. 2018
                                                        Total equity                                     -128
 Non-current assets                          +2,480
                                                        Non-current liabilities                       +2,180
 Right-of-use asset NEW                      +2,433     Lease liability non current NEW               + 2,180
   o/w concession stores                       +1,897     o/w concession stores                         +1,638
   o/w buildings and other                       +536     o/w buildings and other                         +542
                                                        Deferred tax liabilities
 Deferred tax asset                              +47
                                                        Non-current debt                                     -
 Investments in equity-accounted                                                                        +414
                                                        Current liabilities
 companies                                        -3
                                                        Lease liability current NEW                     +440
 Current assets                                  -11      o/w concession stores                           +372
                                                          o/w buildings and other                          +68
 Short-term investments and cash                    -   Other current liabilities                         -26
                                                        Current debt                                         -
                                                        Liabilities associated with assets held
 Assets held for sale                             +2    for sale                                           +2
 TOTAL ASSETS                                +2,468     TOTAL LIABILITIES AND EQUITY                  +2,468

                                                                                                                 49
Full-year 2018 results / 13 March 2019

GLOSSARY (1/4)
Lagardère uses alternative performance measures 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 accounting items taken from the consolidated financial statements prepared under IFRS and a reconciliation with those items is
provided either in this presentation or in the press release or in the notes to the consolidated financial statements.

 The like-for-like change in revenue is calculated by comparing:
 • 2018 revenue to exclude companies consolidated for the first time during the period, and 2017 revenue to exclude companies divested
   in 2018;
 • 2018 and 2017 revenue based on 2017 exchange rates.
 (See reconciliation in section VIII - Appendices of the full-year 2018 results press release)
 Recurring EBIT (Group recurring EBIT). The Group's main performance indicator is recurring operating profit of fully consolidated
  companies, 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 purchase 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 on slide 18)                                                                                                         50
Full-year 2018 results / 13 March 2019

GLOSSARY (2/4)
 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, less amortisation of signing fees.
 (See slide 44 for reconciliation with Recurring EBIT of fully consolidated companies)
 Adjusted profit – Group share is calculated on the basis of profit for the period, excluding non-recurring/non-operating items, the related tax effect
  and minority interests, as follows:
  Profit for the period 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;
 • Non-recurring changes in deferred taxes;
 • Adjusted profit attributable to minority interests (Profit for the period attributable to minority interests plus minority interests on the above items).
 (See slide 32 for reconciliation with Profit for the period)
 Free cash flow is calculated as cash flow from operations plus net cash flow relating to acquisitions and disposals of intangible assets and
  property, plant and equipment.
 (See reconciliation on slide 29)
 Net debt is calculated as the sum of the following items: Short-term investments and cash and cash equivalents, Financial instruments designated
  as hedges of debt, non-current debt and current debt.
 (See reconciliation on slide 40)                                                                                                                  51
Full-year 2018 results / 13 March 2019

GLOSSARY (3/4)
In the context of the first-time application of IFRS 16 – Leases, effective 1 January 2019, the Group has elected to retain its existing
alternative performance measures with certain modifications, in particular the neutralisation of pure accounting effects and distortions
created by the new standard on the concessions businesses. From 1 January 2019, these indicators will be monitored by the Executive
Committee to assess operating performance and manage the business, along with the financial metrics defined by the IASB. These
indicators will be calculated based on accounting items taken from the consolidated financial statements prepared under IFRS and a
reconciliation with those items will be provided.
To prevent any confusion during the transition period between the alternative performance measures before and after the application of IFRS 16,
each corresponding definition is preceded with “REVISED”. The estimated impacts of the application of IFRS 16 on the 2018 consolidated financial
statements are set out on slides 47 to 49.
 REVISED Recurring EBIT (REVISED Group recurring EBIT). The Group's main performance indicator is recurring operating profit of fully
  consolidated companies, 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 purchase 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.
 • Items related to leases: (NEW)
   - Cancellation of fixed rental expense* on concessions;
   - Depreciation of right-of-use assets on concessions;
   - Gains and losses on lease modifications.
* Cancellation of fixed rental expense is equal to the repayment of the lease liability, the associated change in working capital and interest paid in the statement of cash flows.   52
Full-year 2018 results / 13 March 2019

GLOSSARY (4/4)
 REVISED Recurring EBITDA over a rolling 12-month period is calculated as REVISED recurring EBIT of fully consolidated companies
  (REVISED Group recurring EBIT) plus dividends received from equity-accounted companies, less amortisation and depreciation charged against
  intangible assets and property, plant and equipment, less amortisation of signing fees, less depreciation of right-of-use assets for buildings and
  other items (NEW), less cancellation of fixed rental expense* for buildings and other items (NEW).
 REVISED Adjusted profit – Group share is calculated on the basis of profit for the period, excluding non-recurring/non-operating items,
  the related tax effect and minority interests, as follows:
  Profit for the period 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;
 • Items related to leases: (NEW)
   - Cancellation of fixed rental expense* on concessions;
   - Depreciation of right-of-use assets on concessions;
   - Interest expense on lease liabilities on concessions;
   - Gains and losses on lease modifications.
 • Tax effects of the above items, including the tax on dividends paid in France;
 • Non-recurring changes in deferred taxes;
 • Adjusted profit attributable to minority interests (Profit for the period attributable to minority interests plus minority interests on the above items).
 REVISED Free cash flow is calculated as cash flow from operations including repayment of lease liabilities and associated interest paid (NEW)
  plus net cash flow relating to acquisitions and disposals of intangible assets and property, plant and equipment.
* Cancellation of fixed rental expense is equal to the repayment of the lease liability, the associated change in working capital and interest paid in the statement of cash flows.   53
SIGNIFICANT
  EVENTS

Full-year 2018 results
   13 March 2019
Full-year 2018 results / 13 March 2019

BACKGROUND AND OVERALL PERFORMANCE

 Revenue down -1.2% at €2,252m like-for-like.

 Recurring EBIT down by -€20m at €190m.
 • Education (high margin segment) impacted by anticipated absence of curriculum reform in France, UK and Spain.
 • Partially offset by a solid performance on the trade segment in the US and the contribution of acquisitions in the UK.
 • Contribution of recent acquisitions (+€30m) more than offset by negative foreign exchange effect (-€40m).

                                                                                                                            55
Full-year 2018 results / 13 March 2019

FRANCE

 Strong Christmas revenue offset disappointing autumn in otherwise flat (+0.2%) trade market.

 +0.8% gain in trade market share.

 Education at an all-time low due to freeze in curriculum reform as government defines new policy.

 Unfavourable comparative with 2017 (no Asterix album).

 Overall sales performance down -3.8%.

 Acquisition of La Plage publishing house in July 2018.

 Lagardère Publishing entered into exclusive negotiations to acquire Gigamic in January 2019.

                                                                                                      56
Full-year 2018 results / 13 March 2019

INTERNATIONAL MARKETS

 UK: record-setting revenue and recurring EBIT in adult trade and children’s segments thanks to numerous bestsellers.
 • Education lagging due to absence of substantial curriculum reform in primary and secondary.
 • Stellar performance of recent acquisitions (Summersdale, Jessica Kingsley, Bookouture).

 US: revenue and recurring EBIT exceeding prior year.
 • The President is Missing biggest novel of 2018 with 1.3 million copies sold.
 • Acquisition of Worthy Publishing Group, a religious book publisher based in Nashville.

 Spain and Latin America: revenue and recurring EBIT in Education down in Spain due to budget cuts and political
  instability, partly offset by growth in Mexico.

 Partworks: flat sales, rising profit confirm division’s #1 worldwide ranking.

                                                                                                                         57
Full-year 2018 results / 13 March 2019

DIGITAL

 e-Book decline in the US and the UK compensated by spectacular growth of audiobooks (+30% per year) for fourth
  year in a row.

 e-Books accounted for 7.9% of total Lagardère Publishing revenue in 2018, with the proportion remaining stable
  versus 2017, while digital audiobooks represented 2.7% of revenue versus 2.0% in 2017.

 Hachette Innovation Program now fully operational, promoting a culture of innovation and forming partnerships with
  relevant start-ups.

                                                                                                                       58
SIGNIFICANT
  EVENTS

Full-year 2018 results
   13 March 2019
Full-year 2018 results / 13 March 2019

BACKGROUND AND OVERALL PERFORMANCE

 Acquisition of HBF successfully completed and integration plan launched.

 Solid like-for-like revenue growth (up 8.8%) driven by a combination of traffic growth, success of new concepts and
  commercial initiatives, as well as net concessions gains.

 Margins stable as a % of sales as start-up expenses have been compensated by solid improvement of the existing business.

 Positive dynamic in terms of business development:
 •   North America: opening of several stores at Austin, Charlotte, Raleigh, Cincinnati, San Francisco, Denver, Philadelphia and Dallas;
 •   Italy: new concession wins in Rome, Trieste, Brindisi and Bari;
 •   Spain: opening of four Foodservice units at Malaga airport in Q3 2018;
 •   Austria: opening of five Foodservice outlets at Salzburg station in Q2 2018;
 •   United Arab Emirates: opening of food court Daily DXB in Dubai International airport T3 in Q2 2018;
 •   China: very strong network development notably in Shanghai and Wuhan;
 •   New Zealand: opening at the end of the year of Duty Free units at Christchurch airport.

 The growth in passenger traffic* (up 6.3%) remains solid. Strong in Europe (up 6.3%), North America (up 5.2%) and
  Asia-Pacific (up 8.0%).

 Challenging FX effect on currencies against euro.

* Source: Lagardère Travel Retail internal data and ACI data from January to September 2018.                                               60
Full-year 2018 results / 13 March 2019

FRANCE

 Travel Essentials: 100% revenue up 2.9% vs. 2017.
 • Of which +3.6% for the LFL network fuelled by (i) Paris airport network (+11.6% LFL fuelled by both traffic and SPP improvement) and
   (ii) +3.0% for the SNCF network despite 36 days of strikes which significantly impacted business from April to June.
 • Non LFL performance is driven by:
   - the negative impact of the planned RATP network closure program; partly offset by full-year impact of 2017 openings (Nice T2, Marks
       & Spencer Lille Flandres and CDG 2F, Fnac Lyon Airport) and 2018 openings, including Marks & Spencer (CDG 1 and Roissypôle)
       openings and various regional airports such as Pau and Nice (Monop).

 Foodservice: 100% revenue up 10.3% vs. 2017.
 • +4.4% growth in the LFL network fueled by +7.5% growth in airports and +4.2% growth in the hospital network.
 • Non LFL performance is driven by:
   - the full-year impact of 2017 openings including Nice T2 and 2018 openings such as Teppan restaurant in Paris airport, regional airport
     expansion (Toulouse, Pau); and openings in the hospital network (Lyon, Montpellier);
   - these positive effects offset contract losses (Rennes, Caen, Arras).

 Duty Free & Fashion: 100% revenue up 5.0% vs. 2017.
 • LFL network is flat at +0.3%.
 • Non LFL performance is fuelled by:
   - full-year performance of Nice, Lyon and La Réunion airports and Gare du Nord shop after store openings and concept modernisation
     in 2017 (e.g., new walkthrough in Nice T1 and T2) and positive impacts of commercial initiatives;
   - openings of new concepts in Paris in 2018 (including the Beauty New Age concept in Terminal 2E) and the integration of La Maison
     du Chocolat network.
                                                                                                                                         61
Full-year 2018 results / 13 March 2019

EMEA

 Italy
 • Strong revenue growth driven by network development in (i) Duty Free & Fashion in Venice, Bologna and Trieste; (ii) Foodservice with
   openings in Palermo, Genoa, Venice and Rome Termini and overall strong growth in all the channels; (iii) Travel Essentials in Bari,
   Brindisi, Venice and Rome thanks to successful roll-over of Relay concepts.

 Poland
 • Dynamic overall thanks to strong activity at regional airports (Modlin, Krakow, Gdansk, etc.) notably in Duty Free and Travel Essentials
   more than offsetting negative network effect at Warsaw T2 from second half of the year.

 Czech Republic
 • Revenue up with continuous expansion at Prague airport, following the opening of several Fashion and Foodservice units.
   Travel Essentials is very dynamic in the commute channel.

 Other EMEA countries also posted strong revenue growth.

                                                                                                                                              62
Full-year 2018 results / 13 March 2019

NORTH AMERICA, ASIA AND PACIFIC

 North America
 • Closing of the HBF acquisition on 20 November 2018;
 • Sustained traffic growth and strong network development both in Travel Essentials and Foodservice with awards in San Francisco and
   in Orlando.
 • Very favourable impact of the commercial initiatives as well as developments in concepts and the mix.

 Asia
 • Strong Hong Kong revenue growth with the successful opening of Foodservice units at the airport, as well as the development of the
   sales to the JV with China Duty Free and the entry into the new high-speed railway station with five new Travel Essentials and Fashion
   stores;
 • China maintained solid revenue growth thanks to the good performance of the fashion stores at Shenzhen and the success of the new
   developments in Fashion and Foodservice (Shanghai, Wuhan, Chongqing, Beijing).

 Pacific
 • Australian operations negatively impacted by work at Sydney Terminal 2 since May and an unfavourable network impact.
 • Auckland benefitting from full year of Duty Free operations but all activities including the Travel Essentials units have been disrupted
   by work at the International Terminal.
 • Christchurch Duty Free concession opening in November; Travel Essentials units to be opened in 2019 as part of Master Concession.

                                                                                                                                              63
SIGNIFICANT
  EVENTS

Full-year 2018 results
   13 March 2019
Full-year 2018 results / 13 March 2019

STRATEGIC REFOCUSING AND REORGANISATION

 In 2018, Lagardère Active focused on the strategic refocusing which was announced by Arnaud Lagardère on March
  and May 2018.

 Lagardère Active structured its organisation by creating five autonomous business units (Lagardère News, Audiovisual
  Production and Distribution, Press, Television, Pure players and B2B), each with their own operating and functional resources.
 • Except for Lagardère News which encompass Europe 1, the French music radio stations (Virgin Radio and RFM), Paris Match,
   Le Journal du Dimanche and the license management business of the Elle brand, each other business units have been engaged in
   a disposal process which was launched during the first half of the year.

 Significant sales transactions were finalised during 2018 and early 2019.
 • Disposal of most of the Group's international radio activities: sale of radio businesses in the Czech Republic, Poland, Slovakia
   and Romania to Czech Media Invest was completed in July 2018 and the disposal of the radio and advertising sales brokerage assets
   in South Africa was announced in February 2019 (closing of the transaction for the advertising sales brokerage subject to clearance
   from the South African regulatory authorities)
 • Sale of several Group magazine publishing titles in France, including the sale of Elle and its various extensions, Version Femina,
   Art & Décoration, Télé 7 Jours and its various extensions, France Dimanche, Ici Paris and Public, to Czech Media Invest (CMI), which
   was finalised in February 2019 (the Lagardère group remains the owner of the Elle brand in France and abroad).
 • Disposal of the interest in Marie Claire in June 2018.
 • Sale of the e-Health division: MonDocteur was sold in July 2018 and Doctissimo in October 2018; other Pure player and B2B assets
   also sold (notably Boursier.com in January 2019 and Billetreduc.com and Plurimedia in February 2019).

 Other significant transactions are ongoing, notably with the start of exclusive negotiations announced for the sale of the
  Television business (excluding Mezzo).
                                                                                                                                          65
Full-year 2018 results / 13 March 2019

MAGAZINE PUBLISHING

 Global audiences* for our most powerful brands are the following (i.e., on all devices: print, computer, smartphones and tablets):
  Elle (down 8.4%), Paris Match (up 1.6%), Télé 7 Jours (down 1.4%) and Public (up 16.5%).
 In a depressed print advertising market (down around 10.8%)**, our main titles outperformed their markets. Elle remained leader in
  high-end women’s magazines: with 26%** market share, far above its main competitors. Flagship publications (Elle à Table, Télé 7
  Jours) are leaders on their competitive segments. Paris Match saw its market share remain stable during the year.
 In a declining circulation market (down 1.9%***), our main titles performed better than their market segment. Elle displayed one of
  the best trends in the high-end women’s weekly magazine segment. Paris Match remains leader in the news magazine segment and
  registered a better trend in global paid circulation. Télé 7 Jours is one of the leaders on its market in terms of news-stand circulation
  trends. The subscription revenue trend partially offset the news-stand decline.
 Digital revenues are still growing: Public**** is the leader in women’s mobile apps by audience and saw its global digital audience
  grow 42% since December 2017. Elle**** is the number one high-end digital women’s brand for upper socio-professional women.
 Launches in licensing activity:
 • Elle Italy became weekly in November 2018 (formerly monthly);
 • launch of Elle Decoration in Ukraine and Argentina;
 • launch of Elle Argentina website and continued international development of digital activities;
 • first edition of the Elle International Fashion & Luxury Management Program;
 • new international events and strategic projects (Elle Active in Japan, Italy, China; Elle Weekender UK; Elle Women in Tech (US, Norway);
   Elle International Beauty Awards, Elle Deco International Design Awards, etc.);
 • launch of numerous spin-offs (wedding, kids, decoration, etc.).
 Following the sale of most of the magazine titles in France to CMI, the Lagardère group remains the owner of the Elle brand in
  France and abroad. CMI has been granted an exclusive license for the Elle brand covering France.
* ACPM One Global; 2018 T3 vs. 2017 T3 study. / ** IREP; YTD09 2018 vs. YTD09 2017; Magazine Publishing // Kantar Media; January-December 2018; total pages except inserts, except various advertisements
and infomedia. / *** ACPM-OJD; 2017/2018 vs. 2017; DSH DFP Mainstream Press. / **** Médiamétrie - NetRatings Internet Global; December 2018.                                                                66
Full-year 2018 results / 13 March 2019

RADIO IN FRANCE

 Europe 1
 • A new program grid to reposition the station was put in place by the new management team appointed in May 2018.

 Solid position of music radio in France
 • Virgin Radio now reaches 2,390,000 listeners and has a cumulative audience of 4.4%*.
 • RFM now reaches 2,030,000 listeners and has a cumulative audience of 3.7%*.

* Médiamétrie; November-December 2018.                                                                               67
Full-year 2018 results / 13 March 2019

TELEVISION ACTIVITIES – TV CHANNELS

 Gulli recorded its best-ever audience figures in 2018 and is thus the leader in terms of audiences* on the 4/10-year old
  target (audience share 18.9%) and on the 4/14-year old target (audience share 16.4%) as regards the French television
  market, ahead of TF1 and France 4.

 Lagardère Active’s TV hub is the #1 kids group in France including Gulli but also Canal J & TiJi**, benefiting from a high
  recognition rate (99% of households with children know at least one of these TV channels)***.

 Over the years, this Kids TV & Entertainment hub has gained a significant international presence with at least one channel
  broadcast in 91 countries (in Europe, Africa, Middle East and Asia).

* Médiamétrie measure; national Médiamat measure; consolidated audience from 6 am to 8 pm and from 3 am to 27 pm; 2018 Youth Barometer.
** Médiamétrie - Médiamat Thématik; consolidated audience 4/10 y.o. from 3 am to 27 pm – from 1/1/2018 until 03/06/2018.
*** CSA; Observatoire CSA research 2018 – Fame of TV channels; April 2018.                                                                68
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