Slide 1: 2015 Full-Year Results
2015 Full-Year Results 9 March 2016
Slide 2: 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
Slide 3: Contents
Key Group figures pages 4 to 8 Contents Performance by division pages 9 to 19 Group financial results pages 20 to 27 Appendices to consolidated accounts pages 28 to 40 Significant events pages 41 to 64 2015 Full-Year Results 9 March 2016 3
Slide 4: Key Group figures
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Slide 5: Key Group figures: Profit – Group share
Reported Like-for-like 2014* 2015 (€m) change change** Sales 7,170 7,193 +0.3% +3.0% Recurring EBIT of fully 342 378 +10.5% / consolidated companies*** Group operating margin 4.8% 5.3% +0.5 pt / Key Group Profit – Group share 41 74 +€33m / figures Adjusted profit – Group share 185 240 +€55m / Free c
Slide 6: 2015 Recurring EBIT, slightly above guidance
+8.8% +€342m +€327m +€356m +€378m -€15m +€29m +€11m +€11m 2015 Recurring EBIT, slightly above the full-year guidance 2014 Reported LTR - 2014 Business 2015 Scope FX 2015 Reported EBIT Distribution Comparable Performance Comparable** adjustment*** EBIT adjusment* 2015 Full-Year Results 9 March 2016 *
Slide 7: Changes of scope: main items (1/2)
Lagardère Publishing • Acquisition of UK book publisher Rising Stars in December 2014. Full consolidation starting 1 January 2015. • Acquisition of UK book publisher Nicholas Brealey Publishing group. Changes Full consolidation starting 1 July 2015. of scope: Lagardère Travel Retail main items •
Slide 8: Changes of scope: main items (2/2)
Lagardère Active • Acquisition of the Spanish group of TV production Grupo Boomerang TV. Full consolidation starting 1 June 2015. Changes Lagardère Sports and Entertainment of scope: • Acquisition of UFA Sports, a sports marketing agency in Germany. Full consolidation starting 1 July 2015. main
Slide 9: Performance by division
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Slide 10: Lagardère Publishing: activity
2015 sales by geographical area 2015 sales by activity Other Other Education 17% 16% 16% 18%* France 17%* 16%* 29% Spain 31%* 6% Partworks 6%* 11% Illustrated 12%* Books 17% Lagardère US & UK & General 15%* Canada Australia Publishing: 25% 24%* 23% Literature 40% 21%* 40%* activity 2015 sales: €2,
Slide 11: Lagardère Publishing: focus on e-book
As expected, the weight of e-books has decreased: e-books accounted for 9% of total sales of the division in 2015 vs. 10.3% in 2014. Digital for the time being remains essentially limited to the traditional fiction/non-fiction segment, and only in the US and in the UK, where in 2015 market trend
Slide 12: Lagardère Publishing: profitability
(€m) 2014 2015 Change Sales (a) 2,004 2,206 +10.1% Recurring EBIT of fully consolidated companies (b) 197 198 +€1m Operating margin (b)/(a) 9.8% 9.0% -0.8 pt Lagardère Income (loss) from equity-accounted companies 2 1 -€1m Non-recurring/non-operating items (30) (16) +€14m Publishing: EBIT 169 183 +€
Slide 13: Lagardère Travel Retail: activity
2015 sales by geographical area 2015 sales by activity US & Canada 9% Eastern 6%* Asia- Europe Pacific 17% Distribution 10% (Wholesale Distribution 17%* 8%* & Integrated Retail) 27% 37%* Other Western Travel Retail Lagardère Europe 11% France 73% 16%* 23% 63%* Travel Retail: Italy 8% 26%* activity 6
Slide 14: Lagardère Travel Retail: focus on Travel Retail
The growth strategy of Lagardère Travel Retail is bearing fruits. All comments below are based on like-for-like figures. • A strong growth of Travel Retail activities (+8.2%) on all markets, driven by passenger traffic, proper consolidation of acquisitions, network development and successful comme
Slide 15: Lagardère Travel Retail: profitability
(€m) 2014 2015 Change Sales (a) 3,814 3,510 -8.0% Recurring EBIT of fully consolidated companies (b) 105 102 -€3m Operating margin (b)/(a) 2.7% 2.9% +0.2 pt Income (loss) from equity-accounted companies 6 10 +€4m Lagardère Non-recurring/non-operating items (64) (74) -€10m Travel Retail: EBIT 47 38 -
Slide 16: Lagardère Active: activity
2015 sales by geographical area 2015 sales by activity Other international 13% Radio 14%* 21% Spain 22%* 6% 0%* Press France 41% Lagardère 81% 86%* 45%* TV Active: 32% 26%* activity Pure Digital 6% 7%* 2015 sales: €962m (+0.5% reported and -5.8% like-for-like). • Lagardère Active has implemented i
Slide 17: Lagardère Active: profitability
(€m) 2014 2015 Change Sales (a) 958 962 +0.5% Recurring EBIT of fully consolidated companies (b) 73 79 +€6m Operating margin (b)/(a) 7.6% 8.2% +0.6 pt Lagardère Income (loss) from equity-accounted companies 4 2 -€2m Non-recurring/non-operating items (21) (63) -€42m Active: EBIT 56 18 -€38m profitabi
Slide 18: Lagardère Sports and Entertainment: activity
2015 sales by geographical area 2015 sales by activity US & Latin America France 13% Media 9% 14%* rights 14%* Other 26% Africa & 32% 19%* Middle East 33%* 16% Germany Lagardère 9%* 22% 27%* Sports and Asia & Australia 17% Entertainment: 20%* UK 9% Marketing Rest of Europe rights activity 14% 9%* 7%
Slide 19: Lagardère Sports and Entertainment: profitability
(€m) 2014 2015 Change Sales (a) 394 515 +30.9% Recurring EBIT of fully consolidated companies (b) 4 20 +€16m Operating margin (b)/(a) 1.0% 3.9% +2.9 pts Lagardère Income (loss) from equity-accounted companies (3) (2) +€1m Non-recurring/non-operating items (19) (62) -€43m Sports and EBIT (18) (44) -€
Slide 20: Group financial results
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Slide 21: Consolidated income statement (1/2)
(€m) 2014* 2015 Sales 7,170 7,193 Total recurring EBIT of fully consolidated companies** 342 378 Operating activities 379 399 Consolidated Other activities (37) (21) income Income (loss) from equity-accounted companies*** 9 11 statement Non-recurring/non-operating items (142) (215) (1/2) Restructuri
Slide 22: Consolidated income statement (2/2)
(€m) 2014 2015 EBIT 209 174 Net interest expense (73) (66) Consolidated Profit before tax 136 108 income statement Income tax expense (87) (37) (2/2) Total profit 49 71 Attributable to minority interests (8) 3 Profit – Group share 41 74 2015 Full-Year Results 9 March 2016 22
Slide 23: Profit – Group share to Adjusted profit
(€m) 2014 2015 Profit – Group share 41 74 Restructuring costs* +53 +56 Adjusted profit Gains (losses) on disposals* +5 -24 – Fair value adjustment resulting from changes in control* -25 - Group share Impairment losses on goodwill, tangible and intangible +41 +62 fixed assets* Amortisation of acquisi
Slide 24: Consolidated statement of cash flows
(€m) 2014 2015 Cash flow from operations before interest, taxes 403 447 Changes in working capital (49) 180 Cash flow from operations 354 627 Consolidated statement of Interest paid & received, income taxes paid (144) (103) cash flows Cash generated by/(used in) operating activities 210 524 Acquisit
Slide 25: Consolidated balance sheet
31 Dec. 2014 31 Dec. (€m) restated* 2015 Non-current assets (excl. investments in associates and joint ventures) 3,948 4,672 Investments in associates and joint ventures 159 155 Consolidated Current assets (other than short-term investments and cash) 2,834 2,846 balance sheet Short-term investments
Slide 26: Change in net debt in 2015
(€954m) +€274m -€627m -€186m -€58m (€1,551m) Change in net debt in 2015 Net debt Acquisition / Foreign Net debt 2015 Full-Year Results Free cash disposal of Dividends exchange, as of as of 9 March 2016 flow financial paid scope and 31/12/2014 31/12/2015 assets other items 26
Slide 27: Sound financial position
2015 Gross debt breakdown: • Revolving Credit Facility refinanced in May 2015 for well-balanced funding sources €1.25bn, 5 years + up to 2 years extension options. • Strong liquidity, with €1,884m covering up to end 18% Bonds of 2018. Bridge Loan • Gross debt centered on bond market & commercial 1
Slide 28: Appendices to consolidated accounts
Appendices to consolidated accounts
Slide 29: Group profile
Sales by division Recurring EBIT of fully consolidated companies by division Lagardère Sports and Entertainment Lagardère Sports and Entertainment 7% 5% Lagardère Active Lagardère 13% Lagardère Active Lagardère Publishing 20% Publishing 31% 49% Group profile 2015 Lagardère Lagardère Travel Travel Re
Slide 30: Recap of performance by division
Sales 2015 Reported Reported Like-for-like change* (€m) sales €m change change Lagardère Publishing 2,206 +€202m +10.1% +1.7% Lagardère Travel Retail 3,510 -€304m -8.0% +4.3% Lagardère Active 962 +€4m +0.5% -5.8% Recap of Lagardère Sports and Entertainment 515 +€121m +30.9% +19.6% performance Tota
Slide 31: Analysis of non-recurring/non-operating items in 2015
Lagardère Lagardère Lagardère Lagardère Total Other Total Publishing Travel Active Sports and operating activities Lagardère (€m) Retail Entertainment activities Restructuring costs (8) (19) (20) (30) (77) / (77) Gains (losses) on (1) 17 3 1 20 / 20 Analysis of non- disposals recurring/non- Impairme
Slide 32: Main associates and joint ventures
Balance sheet Income statement* (€m) 2014 2015 2014 2015 Marie Claire (42%) 90 90 4 - Édition J’ai Lu (35%) 17 17 1 0 Main associates Société de Distribution Aéroportuaire 15 16 6 7 (45%) and Société d’Édition de Télévision par joint ventures Câble (49%) 10 8 - - Inmedio Poland (49%) 9 11 - 2 Sociét
Slide 33: Cash flow statement data: Lagardère Publishing
(€m) 2014 2015 Cash flow from operations before interest, taxes 193 202 Changes in working capital (44) 3 Cash flow from operations 149 205 Cash flow Interest paid & received, income taxes paid (47) (32) statement data Cash generated by/(used in) operating activities 102 173 Lagardère Acquisition/Di
Slide 34: Cash flow statement data: Lagardère Travel Retail
(€m) 2014 2015 Cash flow from operations before interest, taxes 161 161 Changes in working capital (33) 50 Cash flow from operations 128 211 Cash flow Interest paid & received, income taxes paid (32) (42) statement data Cash generated by/(used in) operating activities 96 169 Lagardère Acquisition/Di
Slide 35: Cash flow statement data: Lagardère Active
(€m) 2014 2015 Cash flow from operations before interest, taxes 59 68 Changes in working capital (28) 107 Cash flow from operations 31 175 Cash flow Interest paid & received, income taxes paid (24) (44) statement data Cash generated by/(used in) operating activities 7 131 Lagardère Acquisition/Dispo
Slide 36: Cash flow statement data: Lagardère Sports and Entertainment
(€m) 2014 2015 Cash flow from operations before interest, taxes 24 32 Changes in working capital 32 28 Cash flow from operations 56 60 Cash flow Interest paid & received, income taxes paid (13) (15) statement data Cash generated by/(used in) operating activities 43 45 Lagardère Acquisition/Disposal
Slide 37: Off balance sheet commitments
(€m) 2014 2015 Commitments to purchase shares from third parties - 1 (other than minority interests) Commitments given in connection with ordinary activities: Off balance - contract guarantees and performance bonds 207 288 sheet - guarantees in favour of third parties or commitments 14 115 non-conso
Slide 38: Lagardère Sports and Entertainment: guaranteed minimum payments
At 31 December 2015 entities forming part of Lagardère Sports and Entertainment had guaranteed minimum future payments amounting to €1,456m under long-term contracts for the sale of TV and marketing rights. These payments break down as follows by maturity: Maturity 2021 2016 2017 2018 2019 2020 To
Slide 39: Recurring EBITDA
(€m) 2014 2015 Total recurring EBIT of fully consolidated companies* 342 378 Recurring Depreciation & amortisation of intangible assets and property, EBITDA +174 +207 plant and equipment Dividends received from equity-accounted companies +17 +13 Total recurring EBITDA 533 598 2015 Full-Year Results
Slide 40: Definitions of Recurring EBIT and like-for-like
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 41: Significant events: Lagardère Publishing
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Slide 42: Background and overall performance
Sales up 1.7% (like for like), thanks to a strong 2nd half: • strong sales in Trade in France; • curriculum reforms in UK and Spain; • positive impact of acquisitions in UK. Background and overall performance 2015 Full-Year Results 9 March 2016 42
Slide 43: France
Book market up by 2%. Outstanding year in Fiction and Illustrated Books: • Hachette Livre garnered five of France’s six top literary awards in fiction; France • cook books and art therapy highly successful; • Asterix album a huge bestseller; • yet another record year for Partworks. Education s
Slide 44: International markets
UK successful in Education, Illustrated Books, integration of acquisitions, and buoyed by strong fall list in Fiction. Spain above expectations, thanks to an effective response to local curriculum reforms. International markets US sales flat and operating income disappointing, due to lower e-b
Slide 45: Digital
E-book sales down 15% in the US, due to market slowdown and new e-retailers contract, as expected. E-book sales down in the UK in both volume and value, due to absorption of massive VAT increase and new e-retailers contract. Digital All other markets growing very slowly. 2015 Full-Year Results
Slide 46: Significant events: Lagardère Travel Retail
Lagardere TRAVEL RETAIL Significant events
Slide 47: Background (1/2)
Lagardère Services changed its name to Lagardère Travel Retail on 8 July 2015. The sale of the Distribution division is progressing well. The growth (+6.0%*) in passenger traffic remains strong in all regions with Europe at +5.2%, North America at +5.0% and Asia-Pacific at +8.0%. At constant r
Slide 48: Background (2/2)
Main perimeter evolution since the beginning of the year (Travel Retail): • Acquisition of Paradies on 22 October 2015 (more than 550 shops among 75 airports in North America). Combining the legacy activities of Lagardère Travel Retail in North America and Paradies creates the third largest player
Slide 49: Investor Day guidance
2014 Investor Day guidance achieved, one year in advance Lagardère Travel Retail1 guidance - €m 2014 Guidance announced in 2013 May 2014 2015 Investor Day (From 2013 to 2016) guidance Proportional 2,598 +5% to +10% +8.2% vs. 2014 sales2 per annum +9% 2014 vs. 2013 Proportional +1.0 pt +1.2 pt EBITDA
Slide 50: Travel Retail in France
Duty Free & Fashion • 100% managed sales up by +7.6% attributable to: - an increase of +8.3% at Paris airports fueled by the strong improvement of the Fashion activities (+18.4%), the growth of the electronics & travel accessories network (+14.7%) and favorable trends on the core duty free segment
Slide 51: Travel Retail in Europe (1/3)
Italy • Rome airports continue to grow strongly despite the fire that occurs at Fiumicino airport. - A major fire occurred on 7 May at Fiumicino airport, destroying part of the commercial spaces of the Terminal 3 (closing of 2 stores). Insurances have compensated the losses. - Despite this event,
Slide 52: Travel Retail in Europe (2/3)
Spain and Portugal • Sales increase by +8.1% mainly due to the Duty Free activities which have strongly increased vs. 2014 with the opening of 8 fashion stores in Madrid, Barcelona, Malaga and Valencia. The network comprises 157 stores (down 7 vs. December 2014). Germany Travel Retail • Sales in
Slide 53: Travel Retail in Europe (3/3)
Czech Republic • Sales increased by +3.8% in 2015, mainly due to the continuing development of the network, leading to a increase in Foodservice of +11.2% along with dynamic Travel Essentials performance (+5.3%). Duty Free showed a -2.8% decrease as sales were impacted by the Russian passengers de
Slide 54: Travel Retail in North America
Retail activities in Canada and in the United States show a strong +47.6% growth driven both by the like for like network and the network development (including Paradies acquisition). • +1.2% sales increase from the comparable network: +8% in Food & Beverage, +5% in Souvenirs and Travel Accessorie
Slide 55: Travel Retail in Asia-Pacific
Pacific • In 2015 sales grew by +11.1% with the on-going rationalization of the news & book network being more than compensated by the developments of the Duty Free & Fashion activities (Auckland Duty Free concession opened in late June, Victoria’s Secret, MAC and Amuse concepts in different locat
Slide 56: Significant events: Lagardère Active
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Slide 57: Magazine Publishing
Audiences One Global: the audience of our main weeklies on all devices (print, fixed-line Internet, mobile and tabs) are all growing: Elle (+6.9%*); Paris Match (+5.0%*) and Télé 7 Jours (+5.4%*). Print Advertising • In a particularly depressed print advertising market, Lagardère Active’s sales
Slide 58: Radio
Europe 1: number 2 news and entertainment private radio station in France, reaching daily over 4 million people. • The latest radio audience measurement wave published by Médiamétrie* has confirmed the success of the new programmes: - 9.1% of cumulative audience, +0.4 point in a year (239 000 list
Slide 59: Television
With Gulli, TiJi and Canal J, Lagardère Active remains the first TV offer for children in France, with a 34% market share. • Gulli remains the leader of kids channels in the French television market, ahead of TF1 and France 4 (the state-owned kids channel). • Lagardère Active kept its leadership o
Slide 60: TV Production and Distribution
First step of Lagardère Studios’ international development through the acquisition of Grupo Boomerang TV, a leading independent TV producer in Spain. Strong growth of distribution revenues in 2015 vs. 2014 confirming the rebroadcasting value of scripted contents. International development TV P
Slide 61: Digital Pure Players
Lagardère Active is operating on the digital with websites and applications of its own offline brands (including Elle, Europe 1, Gulli, Public and Télé 7 Jours) as well as of its pure player brands (Doctissimo.fr, Boursier.com, LeGuide.com, BilletReduc.com). Lagardère Active is one of the leadin
Slide 62: Significant events: Lagardère Sports and Entertainment
Lagardere SPORTS AND ENTERTAINMENT Significant events
Slide 63: Business units (1/2)
Football Europe • Acquisition of UFA Sports in Germany. • Expansion in Sweden (signing of 3 clubs), Poland (Legia Gdańsk), and the Netherlands (Roda JC). Football Asia • Successful delivery the 2015 Asian Cup in Australia. Business units • Continued growth of the AFC Champions League. (1/2) Fo
Slide 64: Business units (2/2)
Endurance • Agreement to sell the activity in January 2016. Consulting and Digital • Expansion of our brand consulting and activation activities in Europe: - acquisition of akzio! ajoint. in Germany; Business units - acquisition of Sponsorship 360 in France. (2/2) Live Entertainment • Acquisit
Slide 65: 2015 Full-Year Results
2015 Full-Year Results 9 March 2016