Lagardere SA · EURONEXT:MMB
Lagardere SA — FY2018 Earnings Presentation
24 slides from Lagardere SA's earnings presentation, May 10, 2019
Slide 1: Full-Year 2018 Results
FULL-YEAR 2018 RESULTS Gérard Adsuar Chief Financial Officer Annual Ordinary and Extraordinary General Meeting 10 May 2019
Slide 2: Contents
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 CONTENTS 1 Key figures for the Group 2 2018 performance by division 3 2018 Group financial results 4 Guidance 2
Slide 3: Key Figures for the Group
KEY FIGURES FOR THE GROUP Annual Ordinary and Extraordinary General Meeting 10 May 2019
Slide 4: Highlights
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 HIGHLIGHTS (€m) 2017* 2018 +2.5% consolidated Revenue 7,084 7,258 +3.3% like-for-like** Solid performance from Lagardère Travel Group recurring EBIT** 399 401 Retail and Lagardère Sports and Group operating margin** 5.6% 5.5% Entertai
Slide 5: Group Recurring EBIT
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 GROUP RECURRING EBIT +2.1% +€403m +€396m +€405m +€401m -€4m -€3m +€9m +€1m -€5m 2017 Group IFRS 15** Impact of 2017 Business 2018 HBF impact FX 2018 Group recurring EBIT* disposals*** comparable performance comparable**** recurring EBIT
Slide 6: 2018 Performance by Division
2018 PERFORMANCE BY DIVISION Annual Ordinary and Extraordinary General Meeting 10 May 2019
Slide 7: Lagardère Publishing
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 LAGARDÈRE PUBLISHING 2018 revenue by geographic area 2018 revenue by activity Other France Other Education 18% 28% 17% 14% 19%* 29%* 16%* 16%* Illustrated Spain Partworks Books 6% 12% 13% 6%* €2,252m 12%* €2,252m 13%* US & UK & General
Slide 8: Lagardère Travel Retail
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 LAGARDÈRE TRAVEL RETAIL 2018 revenue by geographic area 2018 revenue by activity North America Asia-Pacific 21% 13% 22%* 12%* Travel Duty Free Essentials & Fashion 43% 40% €3,673m 44%* €3,673m 39%* EMEA France (excluding 24% France) 25%
Slide 9: Lagardère Active
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 LAGARDÈRE ACTIVE 2018 revenue by geographic area 2018 revenue by activity Other Other 5% / (5%*) 16% 16%* Lagardère Non-core Spain France Studios Press 7% 77% 24% 27% 6%* 78%* 21%* 27%* €895m €895m TV Channels Press 12% 15% 12%* 15%* In
Slide 10: Lagardère Sports and Entertainment
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 LAGARDÈRE SPORTS AND ENTERTAINMENT 2018 revenue by geographic area 2018 revenue by activity Other France Live Entertainment Media rights 21% 18% 10% 16% 25%* 18%* 10%* 22%* Other Asia €438m Germany 27% €438m & Australia 20% 24%* 17% 20%
Slide 11: 2018 Group Financial Results
2018 GROUP FINANCIAL RESULTS Annual Ordinary and Extraordinary General Meeting 10 May 2019
Slide 12: Changes in Revenue – 2018
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 CHANGES IN REVENUE – 2018 +232 (€m) +298 -20 -19 -58 7,258 7,084 -27 2017 Lagardère Lagardère Lagardère Lagardère FX and 2018 revenue* Publishing Travel Retail Active Sports and scope effect revenue Entertainment Revenue up 2.5% on a co
Slide 13: Group Recurring EBIT to EBIT
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 GROUP RECURRING EBIT TO EBIT (€m) 2017* 2018 399 401 409 275 205 43 3 4 (41) (57) (47) (79) (72) (75) Group Income from recurring equity-accounted Restructuring Gains (losses) Impairment Amortisation**** EBIT EBIT** companies*** costs o
Slide 14: EBIT to Profit – Group Share
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 EBIT TO PROFIT – GROUP SHARE (€m) 2017* 2018 409 275 176 194 2 (28) (22) (73) (59) (134) Profit attributable Finance costs, Income tax to minority Profit – Group EBIT net expense interests share * Restated for IFRS 15 using the retrospe
Slide 15: Group Recurring EBIT to Adjusted Profit – Group Share
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 GROUP RECURRING EBIT TO ADJUSTED PROFIT – GROUP SHARE (€m) 2017* 2018 399 401 214 222 3 4 (35) (31) (73) (59) (80) (93) Income tax Group Income from Adjusted profit Adjusted Finance costs, expense excluding recurring equity-accounted at
Slide 16: Consolidated Statement of Cash Flows
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 CONSOLIDATED STATEMENT OF CASH FLOWS (€m) 2017* 2018 Cash flow from operations before changes in working capital 536 505 Substantial improvement attributable to Lagardère Changes in working capital (71) 55 Publishing and Lagardère Trave
Slide 17: Consolidated Balance Sheet
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 CONSOLIDATED BALANCE SHEET (€m) Assets* Liabilities 31 Dec. 2017** 31 Dec. 2018 31 Dec. 2017** 31 Dec. 2018 2,001 Total equity 2,820 1,924 Intangible assets 2,867 1,375 Net debt*** 1,368 1,245 Other assets 1,271 1,035 Other liabilities
Slide 18: Financing Policy
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 FINANCING POLICY A stable debt level. 2019 bond refinancing will reshuffle repayment HBF acquisition funded by non-core schedule positively. asset disposals (Lagardère Active assets and office buildings). Bonds Bank loans & other
Slide 19: Guidance
GUIDANCE Annual Ordinary and Extraordinary General Meeting 10 May 2019
Slide 20: Outlook
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 OUTLOOK 2019 RECURRING EBIT* GROWTH TARGET BASED ON TARGET SCOPE**: The Lagardère group expects 2019 recurring EBIT growth based on the target scope to be between 4% and 6% at constant exchange rates and excluding the acquisition of HBF
Slide 21: Glossary
GLOSSARY Annual Ordinary and Extraordinary General Meeting 10 May 2019
Slide 22: Glossary (1/3)
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 GLOSSARY (1/3) Lagardère uses alternative performance measures which serve as key measures of the Group's operating and financial performance. These indicators are tracked by the Executive Committee in order to assess performance and ma
Slide 23: Glossary (2/3)
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 GLOSSARY (2/3) Operating margin is calculated by dividing recurring EBIT of fully consolidated companies (Group recurring EBIT) by revenue. Recurring EBITDA over a rolling 12-month period is calculated as recurring EBIT of fully con
Slide 24: Glossary (3/3)
Annual Ordinary and Extraordinary General Meeting / 10 May 2019 GLOSSARY (3/3) In the context of the first-time application of IFRS 16 – Leases, effective 1 January 2019, the Group has elected to retain its existing alternative performance measures with certain modifications, in particular the neutr