Lagardere Sa · EURONEXT:MMB
Lagardere Sa — H1 2024 Earnings Presentation
44 slides from Lagardere Sa's earnings presentation, Jul 23, 2024
Slide 1: First-Half 2024 Results
FIRST-HALF 2024 RESULTS 23 July 2024
Slide 2: Disclaimer
First-half 2024 results / 23 July 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, any p
Slide 3: First-Half 2024 Highlights
First-half 2024 results / 23 July 2024 FIRST-HALF 2024 HIGHLIGHTS
Slide 4: H1 2024: Significant Revenue Growth and Record Recurring EBIT
First-half 2024 results / 23 July 2024 H1 2024: SIGNIFICANT REVENUE GROWTH AND RECORD RECURRING EBIT, DRIVEN BY STRONG PERFORMANCES ACROSS OUR DIVISIONS ▪ Strong performance in H1 2024 • Revenue at €4,193m, up 10.1%* on a like-for-like basis • Record recurring EBIT of €212m, up €71m • Free cash flow
Slide 5: Significant Increase in Group Revenue and Record Recurring EBIT at €212m
First-half 2024 results / 23 July 2024 SIGNIFICANT INCREASE IN LAGARDÈRE GROUP REVENUE AND RECORD RECURRING EBIT AT €212M (€m) H1 2023 H1 2024 Revenue 3,701 4,193 Group recurring EBIT* 141 212 Operating margin* 3.8% 5.1% Free cash flow* (88) 35 o/w free cash flow before changes in WC* 76 148 Net deb
Slide 6: Robust Growth Driven by Our Two Main Divisions
First-half 2024 results / 23 July 2024 ROBUST GROWTH DRIVEN BY OUR TWO MAIN DIVISIONS (€m) +1 0 4,193 +107 +1 +327 0 136 +57 +95 Travel Retail 3,701 + 1 Publishing +11 Other Activities 125 +4.5% +13.5% 2,748 Like-for-like vs. H1 2023 2,329 1,309 1,247 H1 2023 Lagardère Lagardère Other Scope FX H1 20
Slide 7: Performance by Division
First-half 2024 results / 23 July 2024 PERFORMANCE BY DIVISION
Slide 8: First-Half Performance: Lagardère Publishing
First-half 2024 results / 23 July 2024 FIRST-HALF PERFORMANCE
Slide 9: Lagardère Publishing Achieves Strong Growth on a High Basis
First-half 2024 results / 23 July 2024 LAGARDÈRE PUBLISHING ACHIEVES STRONG GROWTH ON A HIGH BASIS ▪ It was a successful first half for General Literature, with Quelqu’un d’autre by Guillaume Musso and Un monde presque parfait by Laurent Gounelle in France, The Empyrean series by Rebecca Yarros and
Slide 10: Excellent Performances in the UK and the US
First-half 2024 results / 23 July 2024 EXCELLENT PERFORMANCES IN THE UK AND THE US SUPPORTED BY FRONT- AND BACKLIST TITLES AND GROWTH IN AUDIO H1 2024 revenue by geographic area ▪ Business benefited from a vibrant front- and backlist programme in the UK and the US UK* 20% France ▪ In the US and the
Slide 11: Excellent Level of Profitability
First-half 2024 results / 23 July 2024 EXCELLENT LEVEL OF PROFITABILITY Change in recurring EBIT (€m) and operating margin (%) 8.7% ▪ Profitability stood at 8.7% in H1 2024 significantly higher than in previous years ▪ Recurring EBIT strongly increased compared to 5.2% H1 2023 which can be attribute
Slide 12: Free Cash Flow Before Changes in Working Capital at €73m
First-half 2024 results / 23 July 2024 FREE CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AT €73M MAINLY DRIVEN BY HIGHER CASH FLOW FROM OPERATIONS (€m) H1 2023 H1 2024 Cash flow from operations before changes in working capital 67 118 Changes in working capital (182) (128) Income taxes paid (37) (26)
Slide 13: First-Half Performance: Lagardère Travel Retail
First-half 2024 results / 23 July 2024 FIRST-HALF PERFORMANCE
Slide 14: Strong Performance Confirming the Division's Growth Model
First-half 2024 results / 23 July 2024 STRONG PERFORMANCE CONFIRMING THE DIVISION'S GROWTH MODEL H1 2024 revenue by geographic area ▪ Solid growth in France, thanks to modernisations and Americas Greater China 28% 5% commercial initiatives, and in the EMEA region with excellent performances in Roman
Slide 15: Increase in Revenue Across the Division's Activities
First-half 2024 results / 23 July 2024 INCREASE IN REVENUE ACROSS THE DIVISION'S ACTIVITIES H1 2024 revenue by segment ▪ Revenue growth is primarily driven by the Foodservice segment amplified by M&A in the US with Tastes on the Fly and expansion in the EMEA region Duty Free & Fashion ▪ Success of t
Slide 16: Recurring EBIT at Record Levels
First-half 2024 results / 23 July 2024 RECURRING EBIT AT RECORD LEVELS Change in recurring EBIT (€m) and operating margin (%) 4.0% 4.0% ▪ High level of recurring EBIT of €109m, up 17m€, maintaining a high level of profitability: • improved activity, in particular for EMEA 109 92 • good margin contro
Slide 17: Free Cash Flow Before Working Capital Remains Stable
First-half 2024 results / 23 July 2024 FREE CASH FLOW BEFORE WORKING CAPITAL REMAINS STABLE AS HIGHER CASH FLOW FROM OPERATIONS ALLOWS FOR CAPEX DEVELOPMENT (€m) H1 2023 H1 2024 Cash flow from operations before changes in working capital 161 194 Changes in working capital 40 12 Income taxes paid (4)
Slide 18: First-Half Performance: Other Activities
First-half 2024 results / 23 July 2024 FIRST-HALF PERFORMANCE Other Activities
Slide 19: Other Activities
First-half 2024 results / 23 July 2024 OTHER ACTIVITIES H1 2024 revenue by activity ▪ Other Activities revenue stable vs. H1 2023* Radio 30% Press & • Radio revenue up thanks to improved audience figures at Licenses Europe 1 36% €136m • Strong performance by Lagardère Live Entertainment ▪ Recurring
Slide 20: Group Results
First-half 2024 results / 23 July 2024 GROUP RESULTS
Slide 21: H1 2024 Consolidated Income Statement
First-half 2024 results / 23 July 2024 H1 2024 CONSOLIDATED INCOME STATEMENT (€m) H1 2023 H1 2024 Revenue 3,701 4,193 Group recurring EBIT 141 212 Loss from equity-accounted companies (5) (2) Non-recurring/non-operating items 43 (28) o/w IFRS 16 impacts on concession agreements 118 54 Total EBIT 179
Slide 22: H1 2024 Consolidated Statement of Cash Flows
First-half 2024 results / 23 July 2024 H1 2024 CONSOLIDATED STATEMENT OF CASH FLOWS (€m) H1 2023 H1 2024 Cash flow from operations before changes in working capital 207 293 Changes in working capital (164) (113) Income taxes paid (29) (20) Net cash from operations 14 160 Purchases/disposals of PP&E
Slide 23: New Maturity Profile After June 2024 Refinancing
First-half 2024 results / 23 July 2024 NEW MATURITY PROFILE AFTER JUNE 2024 REFINANCING WITH THE BANKING POOL Debt maturity profile (€m) 1,145 80 916 798 600 700 172 610 75 775 300 481 159 179 365 75 300 75 8 17 70 35 100 100 49 Available H2 2024 & 2025 2026 2027 2028 2029 2030 & beyond liquidity Ca
Slide 24: 30 June 2024: Leverage According to Bank Covenant Below x3
First-half 2024 results / 23 July 2024 30 JUNE 2024: LEVERAGE ACCORDING TO BANK COVENANT BELOW X3 AND DECREASED VS. H1 2023 Leverage and net debt including put options (€m) 7.5x 3.7x 3.6x 2.97x 1,716 3.6x 3.7x 1,961 2.9x 3.6x 2.97x 2.97x 2,164 2,314 30/06/2021 30/06/2022 30/06/2023 30/06/2024 Recurr
Slide 25: 2024
First-half 2024 results / 23 July 2024 2024
Slide 26: 2024 Outlook
First-half 2024 results / 23 July 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 of
Slide 27: Appendices to the Consolidated Financial Statements
First-half 2024 results / 23 July 2024 APPENDICES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Slide 28: Changes in Scope: Main Items
First-half 2024 results / 23 July 2024 CHANGES IN SCOPE: MAIN ITEMS ▪ Lagardère Publishing • None ▪ Lagardère Travel Retail • None 28
Slide 29: Revenue by Geographic Area
First-half 2024 results / 23 July 2024 REVENUE BY GEOGRAPHIC AREA 26% 25% 27% 28% 23% 23% 12% 13% 8% 6% 5% 4% H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 France Western Europe Eastern Europe US & Canada Asia-Pacific Latin America, Middle East, Afri
Slide 30: Summary of Performance by Division – First-Half 2024
First-half 2024 results / 23 July 2024 SUMMARY OF PERFORMANCE BY DIVISION – FIRST-HALF 2024 ▪ Revenue 2024 Consolidated Consolidated Like-for-like (€m) change change (%) change* (%) Lagardère Publishing 1,309 62 5.0 4.5 Lagardère Travel Retail 2,748 419 18.0 13.5 Other Activities 136 11 9.2 0.0 Tota
Slide 31: Analysis of Non-Recurring/Non-Operating Items
First-half 2024 results / 23 July 2024 ANALYSIS OF NON-RECURRING/NON-OPERATING ITEMS Lagardère Lagardère Other Total Total (€m) Publishing Travel Retail Activities H1 2024 H1 2023 Recurring EBIT 113 109 (10) 212 141 Income (loss) from equity-accounted companies 1 (3) - (2) (5) Restructuring costs (7
Slide 32: Adjusted Profit – Group Share
First-half 2024 results / 23 July 2024 ADJUSTED PROFIT – GROUP SHARE (€m) H1 2023 H1 2024 Profit for the period 61 2 Restructuring costs +14 +18 Gains/losses on disposals -3 - Impairment losses on goodwill, PP&E, intangible assets and +11 +1 investments in equity-accounted companies Amortisation of
Slide 33: Group Recurring EBIT to Adjusted Profit – Group Share
First-half 2024 results / 23 July 2024 GROUP RECURRING EBIT TO ADJUSTED PROFIT – GROUP SHARE (€m) H1 2023 H1 2024 212 141 24 36 (5) (2) (6) (6) (20) (27) (38) (48) (69) (72) Income tax Interest Adjusted loss Group Loss from expense excluding Adjusted expense on lease Finance costs, attributable recu
Slide 34: Free Cash Flow Reconciliation
First-half 2024 results / 23 July 2024 FREE CASH FLOW RECONCILIATION (€m) H1 2023 H1 2024 Cash flow from operating activities before changes in working capital 416 579 Repayment of lease liabilities (164) (220) Interest paid on lease liabilities (40) (62) Changes in working capital of lease liabilit
Slide 35: Consolidated Balance Sheet (1/2)
First-half 2024 results / 23 July 2024 CONSOLIDATED BALANCE SHEET (1/2) (€m) Assets* Equity and liabilities 30 June 2024 30 June 2024 31 Dec. 2023 31 Dec. 2023 877 Total equity 956 2,782 Intangible assets 2,794 2,255 Net debt** 2,043 Right-of-use assets 2,070 2,204 (IFRS 16) Lease liabilities 2,372
Slide 36: Consolidated Balance Sheet (2/2)
First-half 2024 results / 23 July 2024 CONSOLIDATED BALANCE SHEET (2/2) (€m) 31 Dec. 2023 30 June 2024 Non-current assets 6,063 6,227 Investments in equity-accounted companies 158 170 Current assets 2,628 2,710 Short-term investments and cash 467 365 Assets held for sale - - TOTAL ASSETS 9,316 9,472
Slide 37: Recurring EBITDA – Over 12 Rolling Months
First-half 2024 results / 23 July 2024 RECURRING EBITDA – OVER 12 ROLLING MONTHS (€m) H1 2023 H1 2024 Group recurring EBIT* 472 591 Depreciation and amortisation of property, plant & equipment +171 +184 and intangible assets Adding back fixed rental expense – buildings and other items -86 -88 Cancel
Slide 38: Glossary (1/3)
First-half 2024 results / 23 July 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, as w
Slide 39: Glossary (2/3)
First-half 2024 results / 23 July 2024 GLOSSARY (2/3) ▪ The like-for-like change in revenue is calculated by comparing: ▪ H1 2024 revenue and H1 2023 revenue adjusted for changes in the scope of consolidation ▪ H1 2024 revenue and H1 2023 revenue based on H1 2024 exchange rates (See reconciliation i
Slide 40: Glossary (3/3)
First-half 2024 results / 23 July 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) on d
Slide 41: Impact of IFRS 16 on the Consolidated Financial Statements
First-half 2024 results / 23 July 2024 IMPACT OF IFRS 16 ON THE CONSOLIDAT ED FINANCIAL STATEMENTS
Slide 42: Impact of IFRS 16 on the Consolidated Income Statement
First-half 2024 results / 23 July 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED INCOME STATEMENT AND RELATED INDICATORS (€m) H1 2023 FY 2023 H1 2024 Recurring EBITDA* (4) (5) - Group recurring EBIT* +4 +12 +11 Income from equity-accounted companies** (2) (6) - Non-recurring/non-operating items +105 +14
Slide 43: Impact of IFRS 16 on the Consolidated Statement of Cash Flows
First-half 2024 results / 23 July 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED STATEMENT OF CASH FLOWS (€m) H1 2023 FY 2023 H1 2024 Cash flow from operating activities before changes in working capital +202 +452 +283 Repayment of lease liabilities (164) (354) (220) Interest paid on lease liabilities (
Slide 44: Impact of IFRS 16 on the Consolidated Balance Sheet
First-half 2024 results / 23 July 2024 IMPACT OF IFRS 16 ON THE CONSOLIDATED BALANCE SHEET (€m) 31 Dec. 2023 30 June 2024 (€m) 31 Dec. 2023 30 June 2024 Total equity (200) (197) Non-current assets +2,145 +2,275 Non-current liabilities +1,954 +2,051 Right-of-use assets +2,070 +2,204 Lease liabilities