Lagardere SA · EURONEXT:MMB
Lagardere SA — Lagardère SCA — FY2014 Earnings Presentation
26 slides from Lagardere SA's earnings presentation, May 5, 2015
Slide 1: General Meeting 2015 Full-Year 2014 Results
General Meeting 2015 Full-Year 2014 Results Dominique D’Hinnin Co-Managing Partner of Lagardère SCA 5 MAY 2015
Slide 2: Key figures for the Group
Key figures for the Group General Meeting 5 May 2015
Slide 3: Key figures for the Group 2014
Reported (€m) 2013 2014 change Sales 7,216 7,170 -0.6%* Recurring EBIT of fully consolidated 327 342 +4.7% companies** Key figures for Operating margin 4.5% 4.8% +0.3 pt the Group ̶ Profit – Group share 1,307 41 -€1,266m 2014 Adjusted profit*** – Group share 172 185 +7.6% Net cash (debt) 361 (954) -
Slide 4: 2014 Media Recurring EBIT, slightly above guidance
+2.9% +€372m +€369m +€379m +€379m 2014 Media -€3m +€10m Recurring EBIT, slightly above the full-year guidance General Meeting 5 May 2015 2013 Reported Payot 2013 Business 2014 FX 2014 Reported Ebit adjusment* Comparable Performance Comparable** Ebit *Effect of disposal of Payot bookstores in July 20
Slide 5: Performance by division
Performance by division General Meeting 5 May 2015
Slide 6: Lagardère Publishing: activity
2014 sales by geographical area 2014 sales by activity Other Other Education 18% 17% 16% 18%* 16%* 16%* France Spain 31% Illustrated 6% 32%* Partworks Lagardère 12% books 6%* 11%* 15% 15%* Publishing: US & UK & General activity Canada 24% Australia 21% Literature 40% 25%* 19%* 42%* 2014 sales: €2,
Slide 7: Lagardère Publishing: focus on e-book
As expected, the pace of digital transition has slowed down: e-books accounted for 10.3% of total division sales in 2014 (vs. 10.4% in 2013). Digital for the time remains essentially limited to the English-speaking markets, and only on the General Literature segment, with diverging market trends
Slide 8: Lagardère Publishing: profitability
(€m) 2013 2014 Change Sales (a) 2,066 2,004 -3.0% Recurring EBIT of fully consolidated 223 197 -€26m companies (b) Lagardère Operating margin (b)/(a) 10.8% 9.8% -1.0 pt Publishing: Income (loss) from equity-accounted (2) 2 / profitability companies Non-recurring/non-operating items (29) (30) / EBIT
Slide 9: Lagardère Services: activity
2014 sales by geographical area 2014 sales by activity US & Asia- Canada Pacific 6% 8% Wholesale 6%* 8%* Eastern Distribution Europe Other 22% 17% 7% Lagardère 24%* 18%* 4%* Italy Services: 3%* 6% France 37% 63% activity 26% 40%* 60%* Switzerland Integrated 9% 29%* Retail 10%* Spain 15% Belgium 9% 1
Slide 10: Lagardère Services: focus on Travel Retail
The development strategy of LS travel retail is bearing fruits: Strong growth on all markets, with an acceleration in H2, fuelled by improving traffic trends and the good performance of acquisitions. On a comparable basis: • in France, activity is up 3.4% thanks to the good performances in Duty Fr
Slide 11: Lagardère Services: profitability
(€m) 2013 2014 Change Sales (a) 3,745 3,814 +1.8% Recurring EBIT of fully consolidated 96 105 +€9m companies (b) Lagardère Operating margin (b)/(a) 2.6% 2.7% +0.1 pt Services: Income from equity-accounted companies 8 6 / profitability Non-recurring/non-operating items (62) (64) / EBIT 42 47 +€5m 2
Slide 12: Lagardère Active: activity
2014 sales by geographical area 2014 sales by activity International Radio 14% 22% 13%* 21%* Press 45% 49%* Lagardère France 86% TV Active: 87%* 26% 23%* activity Pure Digital 7% 7%* 2014 sales: €958m (-5.4% like-for-like). • The decrease in activity is still mainly related to the Magazine decline
Slide 13: Lagardère Active: profitability
(€m) 2013 2014 Change Sales (a) 996 958 -3.8% Recurring EBIT of fully consolidated 64 73 +€9m companies (b) Lagardère Operating margin (b)/(a) 6.4% 7.6% +1.2 pt Active: Income from equity-accounted companies 2 4 / profitability Non-recurring/non-operating items (375) (21) / EBIT (309) 56 +€365m 20
Slide 14: Lagardère Unlimited: activity
2014 sales by geographical area 2014 sales by activity Rest of France World 14% 15% Other Media 12%* rights 13%* 33% 20%* 19% US & 38%* Lagardère Canada 8% Germany Unlimited: 6%* Asia & 27% 28%* activity Australia 20% Marketing 14%* Rest UK rights of Europe 48% 9% 7% 11%* 42%* 16%* 2014 sales: €39
Slide 15: Lagardère Unlimited: profitability
(€m) 2013 2014 Change Sales (a) 409 394 -3,8% Recurring EBIT of fully consolidated (11) 4 +€15m companies (b) Lagardère Operating margin (b)/(a) / 1.0% / Unlimited: Loss from equity-accounted companies (1) (3) / profitability Non-recurring/non-operating items (23) (19) / EBIT (35) (18) +€17m 2014
Slide 16: Group financial results
Group financial results General Meeting 5 May 2015
Slide 17: Consolidated income statement (1/2)
(€m) 2013 2014 Sales 7,216 7,170 Total recurring EBIT of fully consolidated companies* 327 342 Consolidated Media activities 372 379 income Other activities (45) (37) statement Income from equity-accounted companies** 7 9 (1/2) Non-recurring/non-operating items 1,193 (142) Restructuring costs (122)
Slide 18: Consolidated income statement (2/2)
(€m) 2013 2014 EBIT 1,527 209 Consolidated Net interest expense (91) (73) income statement Profit before tax 1,436 136 (2/2) Income tax expense (117) (87) Total profit 1,319 49 Attributable to minority interests (12) (8) Profit – Group share 1,307 41 General Meeting 5 May 2015 18
Slide 19: Adjusted profit Group share
(€m) 2013 2014 Profit – Group share 1,307 41 Amortisation of acquisition-related intangible assets +20 +42 Adjusted profit and other acquisition-related expenses* – Impairment losses on goodwill, tangible and intangible Group share fixed assets* +298 +41 Restructuring costs* +117 +53 Gains/losses on
Slide 20: Consolidated statement of cash flows
(€m) 2013 2014 Cash flow from operations before interest, taxes 454 403 Changes in working capital 116 (49) Cash flow from operations 570 354 Consolidated Interest paid & received, income taxes paid (235) (144) statement of Cash generated by operating activities 335 210 cash flows Acquisition of pro
Slide 21: Change in net debt in 2014
€361m -€271m -€961m -€83m (€954m) Change in net debt in 2014 General Meeting Net cash Net cash from Dividends Foreign exchange, Net debt 5 May 2015 as of operating & paid scope and as of 31/12/2013 investing other items 31/12/2014 activities 21
Slide 22: Consolidated balance sheet
(€m) 31 Dec. 2013 31 Dec. 2014 Non-current assets (excl. investments in 3,579 3,949 associates and joint ventures) Investments in associates and joint ventures 152 159 Consolidated Current assets (other than short-term balance sheet investments and cash) 2,817 2,834 Short-term investments and cash 1
Slide 23: Sound financial position
2014 Gross debt breakdown: well-balanced funding sources • Strong liquidity. 14% in 2013 • Reduced funding costs thanks to the new 14% Bonds bond issued in September 2014 (2% coupon, maturing in September 2019) and the use of Commercial paper short term commercial paper. 21% Bank loan & other Soun
Slide 24: Appendices
Appendices General Meeting 5 May 2015
Slide 25: Definitions of Recurring EBIT of fully consolidated companies and EBITDA
Recurring EBIT of fully consolidated companies is defined as the difference between profit before finance costs and tax and the following items of the profit and loss statement: • Income (loss) from equity-accounted companies; • gains (losses ) on disposals of assets; For the records: • impairment
Slide 26: 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 forec