Gl Events Sa · EURONEXT:GLO
Gl Events Sa — FY2022 Earnings Presentation
41 slides from Gl Events Sa's earnings presentation, Mar 9, 2023
Slide 1: 2022 Annual Results
2022 ANNUAL RESULTS 9 MARCH 2023 BRINGING PEOPLE TOGETHER | 1
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared solely for information uncertainties that could cause figures to materially differ or updates of the forward-looking information that may be purposes, as a supplement to information rendered public from those presented herein for forward-looking purpose
Slide 3: Year in Review
YEAR IN REVIEW GL events delivered a record performance in 2022, surpassing all expectations and targets Activity in Europe and the Americas: x2 and x3 Revenue +77% to €1.315bn Events Exhibitions & Venues: +66% EBITDA +41% to 12.8% of revenue Employees : 5,119 Net attributable income to Group shareh
Slide 4: Contents
CONTENTS 1. 2022 highlights 2. 2022 annual results 3. Change in net debt 4. ESG policy 5. Outlook BRINGING PEOPLE TOGETHER | 4
Slide 5: 2022 Highlights
2022 HIGHLIGHTS BRINGING PEOPLE TOGETHER | 5
Slide 6: The strong rebound for every type of event validates the Group's business model
THE STRONG REBOUND FOR EVERY TYPE OF EVENT VALIDATES THE GROUP'S BUSINESS MODEL • In 2022, GL events benefited from its +68 % strategic positioning in its different business lines and regions • International markets account for Recovery 55% of Group revenue starting in Q3 2021 • Strong performance i
Slide 7: Record revenue in 2022: €1.315bn
RECORD REVENUE IN 2022: €1.315BN ▪ 2022 revenue growth: +77% to €1.315bn, driven by the Live and Venues divisions vs. 2021 vs. 2019 pre-COVID Group revenue 2022 +77% +12 % Group revenue in 2022 excl. China +92% +16 % Revenue growth by division 2019-2022 (€m) BRINGING PEOPLE TOGETHER | 7
Slide 8: Live - A diversified pipeline of mega events: €252m in revenue
LIVE - A DIVERSIFIED PIPELINE OF MEGA EVENTS: €252M IN REVENUE Commonwealth Games UK Birmimgham Overlays 2022 QATAR – 2022 Energy – Distribution World Athletics FIFA Hospitality Services Championships World Cup Brand activation Oregon2022 Qatar2022 "The Corniche” USA – Oregon Engineering & MotoGP Ov
Slide 9: Live: strengthening of structures activities
LIVE: STRENGTHENING OF STRUCTURES ACTIVITIES ▪ Strengthening the supply and geographical coverage of the structures activities ▪ A business line characterized by recurrent business and resilience Field & Lawn Ltd ▪ May 2022 ▪ Infrastructure provider, specialist in festive lighting solutions, geograp
Slide 10: Successful plans for the recovery driving a return to profitability
SUCCESSFUL PLANS FOR THE RECOVERY DRIVING A RETURN TO PROFITABILITY ▪ Growth in business accompanied by an improvement in the Group's profitability ( €49m / + 41%) ▪ Growth in the EBITDA margin impacted by: • A less favourable business and geographical mix vs. 2021 • Pressure on margins • Supporting
Slide 11: Venues - New locations in France
VENUES - NEW LOCATIONS IN FRANCE ▪ Orléans: 6 venues (Convention Centre, Exhibition Centre, Event Hall, Zenith, Conference Centre, Chapit'O) • Concession term: 9 years as from 1 January 2023 • Expected revenue: €9m / year ▪ Paris - Invalides: Paris - Invalides: event facilities, under management for
Slide 12: Venues - Chile: two new sites in Santiago
VENUES - CHILE: AN OFFERING STRENGTHENED BY THE ADDITION OF 2 SITES IN SANTIAGO ▪ Vitacura / Metropolitan: 4,500 sqm reception facility ▪ Parque FISA: take over of an event venue with the • Concession term: 20 years // Start of operation: June 2022 installation of a 12,000 sqm modular exhibition • E
Slide 13: Exhibitions - Exhibition launches
EXHIBITIONS - EXHIBITION LAUNCHES ▪ New exhibitions launched in three main markets • France: CFIA Toulouse (September), Horizonia (September), Vinequip (October), • Chile: Enloce (May), Transport Exhibition (September), Santiago Fair (November) • Brazil: Replication of the book fair in Salvador (Nov
Slide 14: Financial Performance
FINANCIAL PERFORMANCE BRINGING PEOPLE TOGETHER | 14
Slide 15: Live: robust commercial and operational momentum
LIVE: ROBUST COMMERCIAL AND OPERATIONAL MOMENTUM Change vs. Live (€m) 2020 2021 2022 2021 ▪ Strong and diversified activity: event Revenue 309.2 430.4 851.7 98% format, type of services, geographical EBITDA 10.6 60.0 93.1 55% areas, clients, etc. EBITDA margin 3.4% 13.9% 10.9% -3.0 Current operati n
Slide 16: Exhibitions: a less robust rebound and an unfavourable biennial effect
EXHIBITIONS: A LESS ROBUST REBOUND AND AN UNFAVOURABLE BIENNIAL EFFECT Change vs. Exhibitions (€m) 2020 2021 2022 2021 Revenue 68.0 144.5 138.5 -4% EBITDA -15.1 34.2 20.1 -41% EBITDA margin -22.2% 23.7% 14.5% -9.2 Current operati ng i ncome -15.8 32.4 18.1 -44.1% Current operating margin (%) -23.2%
Slide 17: Venues: strong growth in revenue and earnings
VENUES: STRONG GROWTH IN REVENUE AND EARNINGS Change vs. Venues (€m) 2020 2021 2022 2021 Revenue 102.2 166.3 325 95% EBITDA -16.4 26.1 55.4 112% EBITDA margin -16.0% 15.7% 17.0% 1.4 Current operati ng i ncome -36.4 10.4 35.3 239.4% Current operating margin (%) -35.6% 6.3% 10.9% 4.6 ▪ Revenue: • Back
Slide 18: Current operating income €103m: +61% from 2021
CURRENT OPERATING INCOME €103M: +61 % FROM 2021 ▪ Revenue: see previous slides €m 2021 2022 ▪ Operating profitability €49m / -0.9 points: Revenue 741 1,315 • Margin on variable costs lower than in 2021 Purchases and external charges -455 -856 (unfavourable business and geographical mix) Staff costs
Slide 19: Record net income attributable to Group shareholders: €57m
RECORD NET INCOME ATTRIBUTABLE TO GROUP SHAREHOLDERS: €57M (+217 %) ▪ Net financial income (expense): -€2m vs. 2021 • Borrowing costs (+30 points vs. 2021, average rate 2%): (-€6m) €m 2021 2022 • Optimisation for returns on cash: (+€8m) Operating profit 60 98 • Decrease in foreign exchange income: (
Slide 20: Change in the Balance Sheet and Net Debt
CHANGE IN THE BALANCE SHEET AND NET DEBT BRINGING PEOPLE TOGETHER | 20
Slide 21: Balance sheet position at 31 December 2022
BALANCE SHEET POSITION AT 31 DECEMBER 2022 ▪ Goodwill: €m 2021 2022 • Changes in the scope of consolidation (+€32m): Field & Lawn, Créatifs and Seed Expo Goodwill 775 806 • Impact of translation differences ( -€1m) PPE & intangible assets 348 364 ▪ Tangible & intangible assets / Rental equipment Ren
Slide 22: Change in net debt: -€74m
CHANGE IN NET DEBT: -€74M ▪ Generation of operating cash flow of €135m (10.3% of revenue) vs. €68m in 2021 and €110m (9.4%) in 2019 ▪ Regeneration of the Net Source of Funds: COVID Net debt reduction of €74m 2021 aid receipts, Q1 2023 & OJ 24 advance payments ▪ Capex of which: • Live: Power €10m, St
Slide 23: Debt maturity & liquidity
DEBT MATURITY & LIQUIDITY 2023 refinancing programme ▪ 2023 debt service is "sustainable" due to high liquidity levels (€626m) ▪ Maturity extension of bank debt obtained in H1 2022 (€251m over 6 years) ▪ Introduction of a sustainably-linked Recovery Bond (€50m) backed by ESG KPIs ▪ Partial refinanci
Slide 24: Sources of funds and covenants
SOURCES OF FUNDS AND COVENANTS Subsidiary bank ▪ Breakdown of sources of funds borrowing s… • Diversified and secure financing • Debt mainly held by GL events • Fixed rate or hedged debt ≈ 65% French Euro PP • Cash reserve of €50m (undrawn RCF) government 21% backed loans 34% ▪ Bank covenants Calcul
Slide 25: ESG Policy
ESG POLICY BRINGING PEOPLE TOGETHER | 25
Slide 26: Strategic priorities in the service of meetings
STRATEGIC PRIORITIES IN THE SERVICE OF MEETINGS*** A circular business model… ...Supported by an organisation and commitments ESG as an integral part of the business model of the Group Providing consulting and Commitments formalised in 2009 with the creation of a Bringing people engineering sustaina
Slide 27: ESG policy: carbon footprint
ESG POLICY: CARBON FOOTPRINT MAIN ACTIONS ADOPTED • Group carbon assessment LOWERING THE CARBON FOOTPRINT • Energy conservation plan • Communication plan on eco-friendly practices • Reducing energy consumption • Around 50 Venues to be supplied with 100% green electricity • Promoting renewable energi
Slide 28: ESG policy: sorting and consumables
ESG POLICY: SORTING AND CONSUMABLES MAIN ACTIONS ADOPTED Limit the use of disposables and maximise • Raising awareness and training in eco-design and product life cycle analysis our circular energy performance • Product innovation (e.g. Furniture for good, modular • Limiting waste by eco-design and
Slide 29: ESG policy: diversity and territories
ESG POLICY: DIVERSITY AND TERRITORIES MAIN ACTIONS ADOPTED • Integrating CSR criteria into sourcing practices and PROMOTING DIVERSITY AND REGIONAL supplier selection, including a responsible purchasing DEVELOPMENT charter and a code of ethics • Recourse to SSE companies, particularly with respect to
Slide 30: 2022 Group carbon assessment: -22% vs. published data in 2019
2022 GROUP CARBON ASSESSMENT: - 22% VS. PUBLISHED DATA IN 2019 ▪ 2022 Carbon Assessment - Carbon footprint of the Group's activities • Scope: Group companies with a business activity • Service Provider: Ecoact • Methodology: GHG protocol ▪ Carbon footprint reduction (-22%): travel, energy, inputs, w
Slide 31: 2023 Outlook
2023 OUTLOOK BRINGING PEOPLE TOGETHER | 31
Slide 32: Confirmed market opportunities identified and growth in exhibitions
CONFIRMED MARKET OPPORTUNITIES IDENTIFIED AND GROWTH IN EXHIBITIONS Rugby Santiago Mega events Paris2024 Euro2024 Expo2025 WorldCup Cop28 2023 France2023 Exhibitions France Exhibitions International BRINGING PEOPLE TOGETHER | 32
Slide 33: Key challenges for the Group in 2023
KEY CHALLENGES FOR THE GROUP IN 2023 Managing inflation and margins Adding new Venues Reducing gross debt Impact of the economic environment Targeted M&A Business recovery in China BRINGING PEOPLE TOGETHER | 33
Slide 34: 2023 Outlook
2023 OUTLOOK ▪ The Group intends to resume its long-term growth trajectory in 2023, benefiting in particular from the continuing rebound of exhibitions in Europe and the gradual recovery of its activities in China, which will more than offset the lower volume expected for mega events in 2023 compare
Slide 35: Upcoming events
UPCOMING EVENTS Q1 2023 revenue: 20 April 2023 2022 Combined General Meeting : 27 April 2023 Contact: infos.finance@gl-events.com +33 (0)4 72 31 54 20 BRINGING PEOPLE TOGETHER | 35
Slide 36: Appendices
APPENDICES BRINGING PEOPLE TOGETHER | 36
Slide 37: Transition from reported basis to full IFRS accounts presentation
TRANSITION FROM REPORTED BASIS TO FULL IFRS ACCOUNTS PRESENTATION IFRS 16 & IAS 2022 €m 2022 29 impact Full IFRS Goodwill 806 3 809 PPE & intangible assets 364 0 364 IFRS 16 concessions and leases 0 490 490 Rental equipment assets 131 0 131 Financial assets 81 0 81 Deferred taxes 22 6 28 Net source
Slide 38: Transition from reported basis to full IFRS accounts presentation
TRANSITION FROM REPORTED BASIS TO FULL IFRS ACCOUNTS PRESENTATION IFRS 16 & IAS 29 €m 2022 2022 Full IFRS impact Revenue 1.315 -5 1.310 Purchases and external charges -856 59 -797 Staff costs -286 0 -285 Taxes and similar payments -18 0 -18 Other operating income and expenses 12 -1 11 EBITDA 169 53
Slide 39: Breakdown of capital and voting rights at 28 February 2023
BREAKDOWN OF CAPITAL AND VOTING RIGHTS AT 28 FEBRUARY 2023 ▪ Number of shares: 29,982,787 (at 28/03/2022) ▪ LEI: 9695002PXZMQNBPY2P44 ▪ ISIN code: FR0000066672 ▪ SYMBOL: GLO ▪ Main index: CAC All shares ▪ Market: COMPARTMENT B (mid-caps) (EURONEXT PARIS) ▪ Eligibility for French Personal Equity Savi
Slide 40: A comprehensive service offering combining assets and skills
A COMPREHENSIVE SERVICE OFFERING COMBINING ASSETS AND SKILLS A digital services offering tailored for each division > 4,400 20 countri employees GL EVENTS GL EVENTS GL EVENTS es LIVE EXHIBITIONS VENUES €852m in revenue €139m in revenue €325m in revenue for 2022 for 2022 for 2022 11 % operating margi
Slide 41: Annual Results 2022
2022 ANNUAL RESULTS 9 MARCH 2023 BRINGING PEOPLE TOGETHER | 41