Lagardere Sa · EURONEXT:MMB
Lagardere Sa — FY2023 Earnings Presentation
49 slides from Lagardere Sa's earnings presentation, Feb 27, 2024
Slide 1: Full-Year 2023 Results
FULL-YEAR 2023 RESULTS 27 February 2024
Slide 2: Disclaimer
Full-year 2023 results / 27 February 2024 DISCLAIMER By reading this presentation, you agree to be bound by the following limitations and qualifications: This presentation is for information purposes only and does not constitute an offer or solicitation for the sale or purchase of any securities, an
Slide 3: Full-Year 2023 Highlights
Full-year 2023 results / 27 February 2024 FULL-YEAR 2023 HIGHLIGHTS
Slide 4: An exceptional year for the Lagardère Group driven by its two main businesses
Full-year 2023 results / 27 February 2024 AN EXCEPTIONAL YEAR FOR THE LAGARDÈRE GROUP DRIVEN BY THE PERFORMANCE OF ITS TWO MAIN BUSINESSES The Lagardère group recorded robust revenue growth (up 14%* yoy) and higher recurring EBIT, up by €82m versus 2022, setting historical highs. Lagardère Publi
Slide 5: Lagardère Group achieves 15-year revenue and recurring EBIT high
Full-year 2023 results / 27 February 2024 LAGARDÈRE GROUP ACHIEVES 15-YEAR REVENUE AND RECURRING EBIT HIGH (€m) 2022 2023 Revenue 6,929 8,081 Group recurring EBIT* 438 520 Operating margin* 6.3% 6.4% Free cash flow* 221 261 o/w free cash flow before changes in WC* 294 272 Net debt at end of year* (1
Slide 6: Robust growth driven by Lagardère Travel Retail
Full-year 2023 results / 27 February 2024 ROBUST GROWTH DRIVEN BY LAGARDÈRE TRAVEL RETAIL +242 8,081 (€m) +950 6,929 +52 254 -9 -83 254 +1.9% -3.3% 5,018 +23.4% 3,927 Like-for-like vs. 2022 2,809 2,748 2022 Lagardère Lagardère Other Scope FX 2023 revenue Publishing Travel Retail Activities effect ef
Slide 7: Performance by Division
Full-year 2023 results / 27 February 2024 PERFORMANCE BY DIVISION
Slide 8: Full-Year 2023 Performance
Full-year 2023 results / 27 February 2024 FULL-YEAR 2023 PERFORMANCE
Slide 9: Steady growth, fueled by successes across all segments
Full-year 2023 results / 27 February 2024 STEADY GROWTH, FUELED BY SUCCESSES ACROSS ALL SEGMENTS Following an outstanding performance in 2022, revenue remained at a historic level despite a less favorable 2019 to 2023 revenue evolution environment Successes in all segments especially in Illustra
Slide 10: A well-balanced portfolio and footprint enabling growth capture
Full-year 2023 results / 27 February 2024 A WELL-BALANCED PORTFOLIO AND FOOTPRINT ENABLING GROWTH CAPTURE 2023 revenue by geographic area 2023 revenue by activity Education 11% UK*** France 11%* 19% 29% 20%* 27%* Spain General Illustrated 6% Literature Books 5%* €2,809m 42% €2,809m 19% 42%* 19%* €2,
Slide 11: Profitability remained high
Full-year 2023 results / 27 February 2024 PROFITABILITY REMAINED HIGH Change in recurring EBIT (€m) and operating margin (%) evolution since 2019 13.5% 11.0% 10.7% Profitability stood at 10.7% in 2023 significantly higher than pre-Covid levels 10.3% 9.2% Recurring EBIT remained stable compared t
Slide 12: Free cash flow before changes in working capital at €159m
Full-year 2023 results / 27 February 2024 FREE CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AT €159M (€m) 2022 2023 Cash flow from operations before changes in working capital 308 292 Changes in working capital (118) (63) Income taxes paid (104) (68) Cash flow from operations 86 161 Purchases/disposa
Slide 13: Full-Year 2023 Performance
Full-year 2023 results / 27 February 2024 FULL-YEAR 2023 PERFORMANCE
Slide 14: Excellent performance driven by international air traffic and EMEA growth
Full-year 2023 results / 27 February 2024 EXCELLENT PERFORMANCE DRIVEN BY INTERNATIONAL AIR TRAFFIC AND EMEA GROWTH All key business indicators exceeded 2019 levels across the majority of geographical Abu Dhabi Duty Free Flagship regions (United Arab Emirates) Sharp growth in France and EMEA dri
Slide 15: Travel Retail benefitted from the strong rebound in EMEA
Full-year 2023 results / 27 February 2024 IN 2023, LAGARDÈRE TRAVEL RETAIL BENEFITTED FROM THE STRONG REBOUND IN EMEA 2023 revenue by geographic area 2023 revenue by activity Greater China 7% 6%* Other Duty Free & Asia-Pacific Fashion 1% 38% Americas 1%* 38%* 27% 30%* €5,018m Travel €5,018m France 1
Slide 16: Recurring EBIT at historical levels
Full-year 2023 results / 27 February 2024 RECURRING EBIT AT HISTORICAL LEVELS Change in recurring EBIT (€m) and operating margin (%) 4.9% All-time high recurring EBIT of €245m and record profitability of 4.9% thanks to: 3.6% • Improved activity across all geographies 3.5% 92 245 • Good margin cont
Slide 17: Record free cash flow before working capital supported by profitable activities
Full-year 2023 results / 27 February 2024 RECORD FREE CASH FLOW BEFORE WORKING CAPITAL SUPPORTED BY PROFITABLE ACTIVITIES (€m) 2022 2023 Cash flow from operations before changes in working capital 265 373 Changes in working capital 46 64 Income taxes paid (4) (18) Cash flow from operations 307 419 P
Slide 18: Other Activities
Full-year 2023 results / 27 February 2024 OTHER ACTIVITIES
Slide 19: Other Activities
Full-year 2023 results / 27 February 2024 OTHER ACTIVITIES 2023 revenue by activity Radio Other Activities revenue decreased by 3.3% vs. 2022*** 32% 34%* Press & • Press & Radio revenue was down due to lower audience and Licenses 40% circulation figures 43%* €254m • Positive momentum for Elle Inte
Slide 20: Group Results
Full-year 2023 results / 27 February 2024 GROUP RESULTS
Slide 21: 2023 Consolidated Income Statement
Full-year 2023 results / 27 February 2024 2023 CONSOLIDATED INCOME STATEMENT (€m) 2022 2023 Revenue 6,929 8,081 Group recurring EBIT 438 520 Income (loss) from equity-accounted companies* 13 (1) Non-recurring/non-operating items (131) (85) o/w IFRS 16 impacts on concession agreements 24 144 Total EB
Slide 22: 2023 Consolidated Statement of Cash Flows
Full-year 2023 results / 27 February 2024 2023 CONSOLIDATED STATEMENT OF CASH FLOWS (€m) 2022 2023 Cash flow from operations before changes in working capital 524 611 Changes in working capital (73) (14) Income taxes paid (57) (70) Net cash from operations 394 527 Purchases/disposals of PP&E and int
Slide 23: Solid liquidity with €3.1bn available as of 31 December 2023
Full-year 2023 results / 27 February 2024 SOLID LIQUIDITY PRIOR TO IMPACTS OF CHANGE OF CONTROL WITH €3.1BN AVAILABLE AS OF 31 DECEMBER 2023 Debt maturity profile (€m) 3,079 2,184 1,630 133 191 1,300 982 285 467 561 40 1 3 53 270 Available 2024 2025 2026 2027 2028 2029 & liquidity beyond Cash positi
Slide 24: Simulation as of 12 January 2024 after bonds and SSD puts
Full-year 2023 results / 27 February 2024 SIMULATION AS OF 12 JANUARY 2024 AFTER BONDS AND SSD PUTS Debt maturity profile (€m) 1,869 420 1,495 924 982 133 191 1,480 40 467 561 89 53 9 3 Available 2024 2025 2026 2027 2028 2029 & beyond liquidity Cash position RCF - Undrawn* Vivendi loan Commercial pa
Slide 25: The leverage ratio remains below 3x at the end of December
Full-year 2023 results / 27 February 2024 THE LEVERAGE RATIO REMAINS BELOW 3X AT THE END OF DECEMBER Leverage 7.5x 3.6x 2.9x 2.97x 2.1x 2.1x 3.6x 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 Debt 1,367 1,461 1,733 1,535 1,713 2,099 Recurring 657 696 26 422 597 706 EBITDA over 12 rolling mon
Slide 26: Overview of Lagardère SA's ownership structure as of 31 December 2023
Full-year 2023 results / 27 February 2024 OVERVIEW OF LAGARDÈRE SA’S OWNERSHIP STRUCTURE AS OF 31 DECEMBER 2023 Distribution of share capital* Distribution of voting rights* Other Other 9.60% 10.36% 7.97% 6.75% 141m shares 59.80% 167m voting rights 50.62% 11.11%*** 12.77%** 11.52% 19.50% Completio
Slide 27: ESG Performance
Full-year 2023 results / 27 February 2024 ESG PERFORMANCE
Slide 28: ESG performance in 2023: some of our achievements
Full-year 2023 results / 27 February 2024 ESG PERFORMANCE IN 2023: SOME OF OUR ACHIEVEMENTS End of plastic bag +50 hours of green Lagardère Publishing Full deployment of orders for all Lagardère content broadcast under wins gold trophy at the sensory kits for ASD Travel Retail in-house Lagardère Rad
Slide 29: ESG performance in 2023: key figures
Full-year 2023 results / 27 February 2024 ESG PERFORMANCE IN 2023: KEY FIGURES ENVIRONMENT SOCIAL GOVERNANCE SOCIETY Limiting the environmental Placing people at the heart of the Ensuring ethical and responsible Sharing the social and cultural impact of products Group’s strategy corporate governance
Slide 30: 2024
Full-year 2023 results / 27 February 2024 2024
Slide 31: 2024 outlook
Full-year 2023 results / 27 February 2024 2024 Despite the uncertain geopolitical and macroeconomic environment, the Lagardère group remains confident in its ability to maintain a high level of results, thanks to the dynamism and responsiveness of its teams, and the diversified geographical presence
Slide 32: Appendices to the consolidated financial statements
Full-year 2023 results / 27 February 2024 APPENDICES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Slide 33: Changes in scope: main items
Full-year 2023 results / 27 February 2024 CHANGES IN SCOPE: MAIN ITEMS Lagardère Publishing • Acquisition of Welbeck Publishing, fully consolidated since January 2023, a UK-based independent publisher specialising in fiction, illustrated non-fiction and children's gift books. Lagardère Travel Re
Slide 34: Revenue by geographic area
Full-year 2023 results / 27 February 2024 REVENUE BY GEOGRAPHIC AREA 29% 27% 26% 25% 24% 25% 12% 10% 7% 7% 4% 4% 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 France Western Europe Eastern Europe USA & Canada Asia-Pacific Latin America, Middle East, Africa 34
Slide 35: Summary of performance by division – 2023
Full-year 2023 results / 27 February 2024 SUMMARY OF PERFORMANCE BY DIVISION – 2023 Revenue 2023 Consolidated Consolidated Like-for-like change* (€m) change change (%) (%) Lagardère Publishing 2,809 +61 +2.2 +1.9 Lagardère Travel Retail 5,018 +1,091 +27.8 +23.4 Other Activities 254 - - -3.3 Total
Slide 36: Analysis of non-recurring/non-operating items
Full-year 2023 results / 27 February 2024 ANALYSIS OF NON-RECURRING/NON-OPERATING ITEMS Lagardère Lagardère Other Total Total (€m) Publishing Travel Retail Activities 2023 2022 Recurring EBIT 301 245 (26) 520 438 Income (loss) from equity-accounted companies 3 (4) - (1) 13 Restructuring costs (45) (
Slide 37: Adjusted profit – Group share
Full-year 2023 results / 27 February 2024 ADJUSTED PROFIT – GROUP SHARE (€m) 2022 2023 Profit for the period 187 175 Restructuring costs +38 +75 Gains/losses on disposals -7 -10 Impairment losses on goodwill, PP&E, intangible assets and investments +9 +47 in equity-accounted companies Amortisation o
Slide 38: Group recurring EBIT to adjusted profit – Group share
Full-year 2023 results / 27 February 2024 GROUP RECURRING EBIT TO ADJUSTED PROFIT – GROUP SHARE (€m) 2022 2023 520 438 263 252 13 (1) (14) (13) (33) (40) (74) (97) (67) (117) Income tax Income (loss) Interest Adjusted profit Group expense excluding from expense on lease Finance costs, (loss) attribu
Slide 39: Free cash flow reconciliation
Full-year 2023 results / 27 February 2024 FREE CASH FLOW RECONCILIATION (€m) 2022 2023 Cash flow from operating activities before changes in working capital 858 1,070 Repayment of lease liabilities (241) (354) Interest paid on lease liabilities (87) (99) Changes in working capital of lease liabiliti
Slide 40: Consolidated balance sheet (1/2)
Full-year 2023 results / 27 February 2024 CONSOLIDATED BALANCE SHEET (1/2) (€m) Assets* Equity and liabilities 31 Dec. 2023 31 Dec. 2023 31 Dec. 2022 31 Dec. 2022 956 Total equity 2,794 1,030 Intangible assets 2,626 2,099 Net debt** 1,713 Right-of-use assets 2,070 Lease liabilities (IFRS 16) 1,640 2
Slide 41: Consolidated balance sheet (2/2)
Full-year 2023 results / 27 February 2024 CONSOLIDATED BALANCE SHEET (2/2) (€m) 31 Dec. 2022 31 Dec. 2023 Non-current assets 5,420 6,063 Investments in equity-accounted companies 83 158 Current assets 2,627 2,628 Short-term investments and cash 851 467 Assets held for sale - - TOTAL ASSETS 8,981 9,3
Slide 42: Recurring EBITDA – over 12 rolling months
Full-year 2023 results / 27 February 2024 RECURRING EBITDA – OVER 12 ROLLING MONTHS (€m) 2022 2023 Group recurring EBIT* 438 520 Depreciation and amortisation of property, plant & equipment +171 +177 and intangible assets Adding back fixed rental expense – building and other items -86 -85 Cancelling
Slide 43: Glossary (1/3)
Full-year 2023 results / 27 February 2024 GLOSSARY (1/3) Lagardère uses alternative performance measures which serve as key indicators 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, a
Slide 44: Glossary (2/3)
Full-year 2023 results / 27 February 2024 GLOSSARY (2/3) The like-for-like change in revenue is calculated by comparing: • 2023 revenue to exclude companies consolidated for the first time during the period, and 2022 revenue to exclude companies divested in 2023 • 2023 and 2022 revenue based on 20
Slide 45: Glossary (3/3)
Full-year 2023 results / 27 February 2024 GLOSSARY (3/3) Adjusted profit – Group share is calculated on the basis of profit for the period, excluding non-recurring/non-operating items, net of the related tax and of minority interests, as follows: Profit for the period excluding: • Gains (losses) o
Slide 46: Impact of IFRS 16 on the consolidated accounts
Full-year 2023 results / 27 February 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED ACCOUNTS
Slide 47: Impact of IFRS 16 on the consolidated income statement and related indicators
Full-year 2023 results / 27 February 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED INCOME STATEMENT AND RELATED INDICATORS (€m) 2022 2023 Recurring EBITDA* (7) (5) Group recurring EBIT* +10 +12 Income from equity-accounted companies** (4) (6) Non-recurring/non-operating items +24 +141 Of which cancella
Slide 48: Impact of IFRS 16 on the consolidated statement of cash flows
Full-year 2023 results / 27 February 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED STATEMENT OF CASH FLOWS (€m) 2022 2023 Cash flow from operating activities before changes in working capital +319 +452 Repayment of lease liabilities (241) (354) Interest paid on lease liabilities (87) (99) Changes in wo
Slide 49: Impact of IFRS 16 on the consolidated balance sheet
Full-year 2023 results / 27 February 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED BALANCE SHEET (€m) 31 Dec. 2022 31 Dec. 2023 (€m) 31 Dec. 2022 31 Dec. 2023 Total equity (255) (200) Non-current assets +1,737 +2,145 Non-current liabilities +1,641 +1,954 Right-of-use asset +1,640 +2,070 Lease liability