Lagardere Sa · EURONEXT:MMB

Lagardere Sa — H1 2020 Earnings Presentation

42 slides from Lagardere Sa's earnings presentation, Jul 30, 2020

  1. Slide 1: First-half 2020 Results

    FIRST-HALF 2020 RESULTS 30 July 2020

  2. Slide 2: Disclaimer

    First-half 2020 results / 30 July 2020 DISCLAIMER Certain statements contained in this document are forward-looking statements (including objectives and trends), which address our vision of the financial position, results of operations, strategy, expected future business and financial performance of

  3. Slide 3: Highlights

    First-half 2020 results / 30 July 2020 HIGHLIGHTS

  4. Slide 4: Highlights

    First-half 2020 results / 30 July 2020 HIGHLIGHTS (€m) H1 2019 H1 2020 Revenue* 3,324 2,088 Group recurring EBIT*/** 88 (218) Profit (loss) – Group share [including net income/(loss) from Lagardère Sports] 52 (481) Adjusted profit (loss) – Group share*/** 6 (278) Free cash flow*/** (34) (511) o/w fr

  5. Slide 5: Like-for-like revenue growth by segment

    First-half 2020 results / 30 July 2020 LIKE-FOR-LIKE REVENUE GROWTH BY SEGMENT Lagardère Publishing Lagardère Travel Retail Other Activities* +21% +6% +1% +1% -19% -22% -19% -39% -36% -42% Jan.- March April May June -54% -51% Feb. Jan.- March April May June Feb. -8.3% -82% -87% -91% -26.1% Jan.- Mar

  6. Slide 6: Vigorous corrective measures implemented to limit the impact of Covid-19

    First-half 2020 results / 30 July 2020 VIGOROUS CORRECTIVE MEASURES IMPLEMENTED TO LIMIT THE IMPACT OF COVID-19  Protecting employees, customers and partners.  Creating and activating a Covid-19 solidarity fund with an endowment of (i) €5m out of the cash initially allocated to the dividend paymen

  7. Slide 7: Liquidity

    First-half 2020 results / 30 July 2020 LIQUIDITY  Strong liquidity for the next 12 months with nearly €1.5bn available as of 30 June 2020. Bonds Authorised credit lines*: €450m Bank loans and other Credit line** Commercial paper Cash: €1,021m €230m €800m** €298m €496m €497m €344m €60m €189m €90m €3

  8. Slide 8: Performance by Division

    First-half 2020 results / 30 July 2020 PERFORMANCE BY DIVISION

  9. Slide 9: Lagardère Publishing: Activity

    First-half 2020 results / 30 July 2020 LAGARDÈRE PUBLISHING: ACTIVITY H1 2020 revenue by geographic area H1 2020 revenue by activity Education UK & 11% France 11%* Australia*** 25% 20% 28%* Illustrated 17%* Books 11% Spain 12%* 5% 5%* €971m General €971m Literature €1,044m** €1,044m** 49% Partworks

  10. Slide 10: Lagardère Publishing: Profitability

    First-half 2020 results / 30 July 2020 LAGARDÈRE PUBLISHING: PROFITABILITY Change in recurring EBIT (€m) Flow through* and operating margin (%) (change in recurring EBIT/change in revenue) 13.7% -€73m H1 2019 H1 2020 -13% 184 1,044 971 -€9m 3.5% 2.8% 36 36 27 27 H1 2019 H2 2019 H1 2020 Revenue Recur

  11. Slide 11: Lagardère Publishing: Cash Flow Statement

    First-half 2020 results / 30 July 2020 LAGARDÈRE PUBLISHING: CASH FLOW STATEMENT (€m) H1 2019 H1 2020 Cash flow from operations before changes in working capital 37 33 Changes in working capital (100) (114) Income taxes paid (19) (22) Cash flow used in operations (82) (103) Purchases/disposals of PP

  12. Slide 12: Lagardère Travel Retail: Activity

    First-half 2020 results / 30 July 2020 LAGARDÈRE TRAVEL RETAIL: ACTIVITY H1 2020 revenue by geographic area H1 2020 revenue by activity US & Canada Asia-Pacific 26% 12% 26%* 12%* Travel Duty Free Essentials & Fashion €947m 42% €947m 36% EMEA France 40%* €1,995m** 38%* €1,995m** (excluding 20% 23%* F

  13. Slide 13: Lagardère Travel Retail: Profitability

    First-half 2020 results / 30 July 2020 LAGARDÈRE TRAVEL RETAIL: PROFITABILITY Change in recurring EBIT (€m) Flow through* and operating margin (%) (change in recurring EBIT/change in revenue) 4.7% -24% 2.3% 107 -22.1% +574 46 46 +219 (209) (209) (1,048) H1 2019 Change Variable-cost Fixed-cost H1 202

  14. Slide 14: Lagardère Travel Retail: Cash Flow Statement

    First-half 2020 results / 30 July 2020 LAGARDÈRE TRAVEL RETAIL: CASH FLOW STATEMENT (€m) H1 2019 H1 2020 Cash flow from operations before changes in working capital 102 (136) Changes in working capital (7) (201) Income taxes paid (7) (2) Cash flow from (used in) operations 88 (339) Purchases/disposa

  15. Slide 15: Other Activities

    First-half 2020 results / 30 July 2020 OTHER ACTIVITIES H1 2020 revenue by activity Change in recurring EBIT (€m) 0 Radio -11 38% 36%* €107m Press -35 46% €145m** 41%* H1 2019 H2 2019 H1 2020 Other 16% 23%* €107m (down 26.2% on a consolidated basis and down 26.1% like-for-like).  €1m negative scope

  16. Slide 16: Group Results

    First-half 2020 results / 30 July 2020 GROUP RESULTS

  17. Slide 17: Changes in Revenue

    First-half 2020 results / 30 July 2020 CHANGES IN REVENUE (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) -87 +3 3,324 -1,088 -37 -27 2,088 H1 2019 Lagardère Lagardère Other Activities Non-retained FX and scope H1 2020 revenue Publishing Travel

  18. Slide 18: Group Recurring EBIT to EBIT

    First-half 2020 results / 30 July 2020 GROUP RECURRING EBIT TO EBIT (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 88 98 37 29 0 (25) (8) (12) (8) (6) (63) (42) (56) (94) (218) (476) IFRS 16 Group Income from Restructuring Gains

  19. Slide 19: EBIT to Profit (Loss) – Group Share

    First-half 2020 results / 30 July 2020 EBIT TO PROFIT (LOSS) – GROUP SHARE (€m) H1 2019 H1 2020 98 65 51 17 52 (41) (38) (24) (41) (12) (8) (20) (476) (481) Interest Net income/(loss) Profit (loss) EBIT expense on Finance costs, Income tax from discontinued attributable Profit (loss) – Group lease n

  20. Slide 20: Group Recurring EBIT to Adjusted Profit (Loss) – Group Share

    First-half 2020 results / 30 July 2020 GROUP RECURRING EBIT TO ADJUSTED PROFIT (LOSS) – GROUP SHARE (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 88 0 8 8 6 (25) (9) (10) (25) (41) (24) (24) (218) (278) Income tax Group Income

  21. Slide 21: Consolidated Statement of Cash Flows

    First-half 2020 results / 30 July 2020 CONSOLIDATED STATEMENT OF CASH FLOWS (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 Cash flow from (used in) operations before changes in working capital 139 (138) Changes in working capita

  22. Slide 22: Consolidated Balance Sheet

    First-half 2020 results / 30 July 2020 CONSOLIDATED BALANCE SHEET (€m) Assets* Equity and liabilities 31 Dec. 2019 30 June 2020 31 Dec. 2019 30 June 2020 1,672 Intangible assets 2,699 1,461 1,099 Total equity 2,607 2,859 2,048 Net debt** Right-of-use assets 3,097 2,157 Other assets 1,295 2,538 Lease

  23. Slide 23: Outlook

    First-half 2020 results / 30 July 2020 OUTLOOK  Business environment remains uncertain into H2 2020 in the context of the continued spread of the COVID-19 pandemic globally. Lagardère Publishing • Solid recovery in June in context of lockdowns lifting, confirming the resilience of the business mode

  24. Slide 24: Liquidity

    First-half 2020 results / 30 July 2020 LIQUIDITY  Robust liquidity of €1,471m as of June 2020.  Liquidity consolidated with a covenant waiver for June 2020 and December 2020.  The Group estimates that its liquidity position as of June 2020 is sufficient to operate in the next 12 months based on p

  25. Slide 25: Appendices to the Consolidated Accounts

    First-half 2020 results / 30 July 2020 APPENDICES TO THE CONSOLIDATED ACCOUNTS

  26. Slide 26: Changes in Scope: Main Items

    First-half 2020 results / 30 July 2020 CHANGES IN SCOPE: MAIN ITEMS  Lagardère Publishing • Acquisition in December 2019 of Blackrock Games, a French board game distributor. • Acquisition in January 2020 of Le Livre Scolaire, a French textbook publisher.  Non-retained scope • Lagardère Sports - Di

  27. Slide 27: Consolidated Income Statement

    First-half 2020 results / 30 July 2020 CONSOLIDATED INCOME STATEMENT (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 Revenue 3,324 2,088 Group recurring EBIT* 88 (218) Income (loss) from equity-accounted companies** - (25) Non-re

  28. Slide 28: Consolidated Statement of Cash Flows

    First-half 2020 results / 30 July 2020 CONSOLIDATED STATEMENT OF CASH FLOWS (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 Cash flow from (used in) operations before changes in working capital 139 (138) Changes in working capita

  29. Slide 29: Free Cash Flow Reconciliation

    First-half 2020 results / 30 July 2020 FREE CASH FLOW RECONCILIATION (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 Cash flow from operating activities before changes in working capital 422 28 Repayment of lease liabilities (225

  30. Slide 30: Target Scope Free Cash Flow

    First-half 2020 results / 30 July 2020 TARGET SCOPE FREE CASH FLOW (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) H1 2019 H1 2020 Cash flow from (used in) operations before changes in working capital* 142 (136) Income taxes paid (11) (14) Purch

  31. Slide 31: Analysis of Non-Recurring/Non-Operating Items in H1 2020

    First-half 2020 results / 30 July 2020 ANALYSIS OF NON-RECURRING/NON-OPERATING ITEMS IN H1 2020 (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) Non-retained Lagardère scope Lagardère Travel Other Total target Total Total (former (€m) Publishing Retai

  32. Slide 32: Adjusted Profit – Group Share

    First-half 2020 results / 30 July 2020 ADJUSTED PROFIT – GROUP SHARE (€m) H1 2019 H1 2020 Profit (loss) for the period 72 (498) Restructuring costs +8 +12 Gains/losses on disposals -37 +8 Impairment losses on goodwill, PP&E, intangible assets and investments +6 +63 in equity-accounted companies Amor

  33. Slide 33: Group Profile – H1 2020 (Excluding Lagardère Sports)

    First-half 2020 results / 30 July 2020 GROUP PROFILE – H1 2020 (EXCLUDING LAGARDÈRE SPORTS) H1 2020 revenue by division H1 2020 recurring EBIT by division H1 2020 revenue by geographic area Non-retained scope**** 27 US & France Other Activities*** 3% Canada 26% 27% 29%* 5% (1) 25%* (35) Lagardère La

  34. Slide 34: Summary of Performance by Division – H1 2020

    First-half 2020 results / 30 July 2020 SUMMARY OF PERFORMANCE BY DIVISION – H1 2020 (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5)  Revenue H1 2020 Consolidated Consolidated Like-for-like (€m) change change change* Lagardère Publishing 971 -€73m -7

  35. Slide 35: Consolidated Balance Sheet

    First-half 2020 results / 30 July 2020 CONSOLIDATED BALANCE SHEET (€m) 31 Dec. 2019 30 June 2020 Non-current assets 6,733 6,033 Investments in equity-accounted companies 73 56 Current assets 2,416 2,193 Short-term investments and cash 913 1,021 Assets held for sale 994 217 TOTAL ASSETS 11,129 9,520

  36. Slide 36: Glossary (1/3)

    First-half 2020 results / 30 July 2020 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, as w

  37. Slide 37: Glossary (2/3)

    First-half 2020 results / 30 July 2020 GLOSSARY (2/3)  Flow through is calculated by dividing the change in recurring operating profit of fully-consolidated companies (recurring EBIT) by the change in revenue. This indicator is used by the Group in the context of the Covid-19 pandemic to measure th

  38. Slide 38: Glossary (3/3)

    First-half 2020 results / 30 July 2020 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) on d

  39. Slide 39: Impacts of IFRS 16 on the Consolidated Accounts

    First-half 2020 results / 30 July 2020 IMPACTS OF IFRS 16 ON THE CONSOLIDATED ACCOUNTS

  40. Slide 40: Impact of IFRS 16 on the Consolidated Income Statement and Related Indicators

    First-half 2020 results / 30 July 2020 IMPACT OF IFRS 16 ON THE CONSOLIDATED INCOME STATEMENT AND RELATED INDICATORS (€m) H1 2019 FY 2019 H1 2020 Recurring EBITDA* -1 - -1 Group recurring EBIT* +8 +13 +6 Income from equity-accounted companies** - - - Non-recurring/non-operating items +29 +60 -94 Of

  41. Slide 41: Impact of IFRS 16 on the Consolidated Statement of Cash Flows

    First-half 2020 results / 30 July 2020 IMPACT OF IFRS 16 ON THE CONSOLIDATED STATEMENT OF CASH FLOWS (€m) H1 2019 FY 2019 H1 2020 Cash flow from operating activities before changes in working capital +289 +616 +172 Repayment of lease liabilities -225 -519 -109 Interest paid on lease liabilities -40

  42. Slide 42: Impact of IFRS 16 on the Consolidated Balance Sheet

    First-half 2020 results / 30 July 2020 IMPACT OF IFRS 16 ON THE CONSOLIDATED BALANCE SHEET (€m) 31 Dec. 2019 30 June 2020 (€m) 31 Dec. 2019 30 June 2020 Total equity -134 -228 Non-current assets +2,934 +2,259 Non-current liabilities +2,535 +2,093 Right-of-use asset +2,859 +2,157 Lease liability – no

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