Slide 1: Full-Year 2020 Results
FULL-YEAR 2020 RESULTS 25 February 2021
Slide 2: Disclaimer
Full-year 2020 results / 25 February 2021 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: Highlights
Full-year 2020 results / 25 February 2021 HIGHLIGHTS
Slide 4: 2020 Highlights: Strong Business Adaptability and Efficient Crisis Management
Full-year 2020 results / 25 February 2021 2020 HIGHLIGHTS: STRONG BUSINESS ADAPTABILITY AND EFFICIENT CRISIS MANAGEMENT OVER 2020 Action plans delivering strong results in H2 2020, after H1 2020 initial impact Lagardère Publishing very strong H2 2020, with +5% revenue growth, exceptional Recurring
Slide 5: 2020 Group Performance Marked by Covid Crisis Effect on Travel Retail
Full-year 2020 results / 25 February 2021 2020 GROUP PERFORMANCE MARKED BY COVID CRISIS EFFECT ON TRAVEL RETAIL (€m) 2019 2020 Revenue* 7,211 4,439 Group recurring EBIT*/** 378 (155) Operating margin*/** 5.2% -3.5% Free cash flow*/** 294 (256) o/w free cash flow before changes in WC*/** 260 (239) Ne
Slide 6: Lagardère Publishing Outstanding Results Providing Solid Ground to the Group
Full-year 2020 results / 25 February 2021 LAGARDÈRE PUBLISHING OUTSTANDING RESULTS PROVIDING SOLID GROUND TO THE GROUP IN A COVID CONTEXT 2020 Revenue by division 2020 Recurring EBIT by division Non- retained 219 scope**** Other 2% Activities*** 4%* 5% 4%* 27 H1 H2 H1 H2 H1 0 Lagardère H2 Travel Ret
Slide 7: 2020 Significant ESG Achievements
Full-year 2020 results / 25 February 2021 2020 SIGNIFICANT ESG ACHIEVEMENTS ENVIRONMENT PEOPLE SOCIAL ETHICS Reducing the Placing people at the heart Sharing our social and Ensuring ethical and environmental footprint of of Group strategy cultural diversity responsible governance our products and se
Slide 8: Performance by Division
Full-year 2020 results / 25 February 2021 PERFORMANCE BY DIVISION
Slide 9: Lagardère Publishing Performance
Full-year 2020 results / 25 February 2021 2020 PERFORMANCE
Slide 10: Capturing Revenue Growth Over H2 2020 Despite Lockdown
Full-year 2020 results / 25 February 2021 CAPTURING REVENUE GROWTH OVER H2 2020 DESPITE LOCKDOWN 2020 monthly like-for-like revenue Attractive book offering allowing to capture exceptional +21% demand for General Literature over the year +10% +13% Strong adapting curve post-H1 2020 lockdown: swi
Slide 11: Strong Year in General Literature Across Geographies
Full-year 2020 results / 25 February 2021 STRONG YEAR IN GENERAL LITERATURE ACROSS GEOGRAPHIES, BOOSTED BY FORMAT MIX, MITIGATING SOFTER PERFORMANCE IN OTHER SEGMENTS 2020 revenue by geographic area 2020 revenue by activity Education UK & 14% Australia*** France 15%* 21% 28% 19%* 29%* Illustrated Bo
Slide 12: Increase in Profitability Driven by Exceptional Context
Full-year 2020 results / 25 February 2021 INCREASE IN PROFITABILITY DRIVEN BY EXCEPTIONAL CONTEXT Change in recurring EBIT (€m) Favourable format and distribution channel mix in and operating margin (%) General Literature across geographies Ebooks: +22% revenues vs. 2019 10.4% Audiobooks: +25%
Slide 13: Maintaining High Cash Conversion Rate and Favourable Working Capital
Full-year 2020 results / 25 February 2021 MAINTAINING HIGH CASH CONVERSION RATE AND FAVOURABLE WORKING CAPITAL (€m) 2019 H1 2020 H2 2020 2020 Cash flow from operations before changes in working capital 229 33 211 244 Changes in working capital 35 (114) 182 68 Income taxes paid (43) (22) (28) (50) Ca
Slide 14: Lagardère Travel Retail Performance
Full-year 2020 results / 25 February 2021 2020 PERFORMANCE
Slide 15: Revenue in Line with Passenger Air Traffic Levels
Full-year 2020 results / 25 February 2021 REVENUE IN LINE WITH PASSENGER AIR TRAFFIC LEVELS 2020 monthly like-for-like revenue vs. passenger traffic +1% Revenue correlated with global passenger air traffic In Q4 2020, travel restrictions in several countries affected performance in Europe (secon
Slide 16: Mainland China Outperformance & Travel Essentials Resilience
Full-year 2020 results / 25 February 2021 MAINLAND CHINA OUTPERFORMANCE & TRAVEL ESSENTIALS RESILIENCE AMID TRAVEL RESTRICTIONS 2020 revenue by geographic area 2020 revenue by activity Mainland China 7% US & Canada 2%* Other Asia- 24% 25%* Pacific 6% 10%* Travel Duty Free Essentials & Fashion €1,720
Slide 17: Profitability: Flow Through at Better End of Guidance
Full-year 2020 results / 25 February 2021 PROFITABILITY: FLOW THROUGH AT BETTER END OF GUIDANCE Flow through* (change in recurring EBIT/change in revenue) -19.9% Massive efforts to reduce costs in a crisis context: swift implementation of cost saving €m measures to deliver 19.9% flow through Lim
Slide 18: Strict Capex Control with Focus on Relevant Projects
Full-year 2020 results / 25 February 2021 STRICT CAPEX CONTROL WITH FOCUS ON RELEVANT PROJECTS Capex breakdown €m 156 Excluding Capex for IT & Mainland China: Capex reduced by -40% (vs. 2019) 35 -23% 120 IT projects mainly carried on as planned to avoid further costs related to a stop & go 47 pr
Slide 19: Cash Flow Statement: Strong Improvement in H2 2020 vs. H1 2020
Full-year 2020 results / 25 February 2021 CASH FLOW STATEMENT: STRONG IMPROVEMENT IN H2 2020 VS. H1 2020 Significant improvement in free cash flow management in H2 2020 (vs. H1 2020) despite ongoing low air traffic levels, thanks to working capital management and Capex arbitrage in H2 2020 (€m) 20
Slide 20: Other Activities
Full-year 2020 results / 25 February 2021 OTHER ACTIVITIES
Slide 21: Radios & Press Less Impacted by Crisis than Licenses & Venues
Full-year 2020 results / 25 February 2021 RADIOS & PRESS LESS IMPACTED BY CRISIS THAN LICENSES & VENUES Radios and Press affected by decrease in advertising revenues due to successive lockdowns, 2020 revenue by activity despite a slight recovery over summer (Q3 2020) and toward year end (December
Slide 22: Group Results
Full-year 2020 results / 25 February 2021 GROUP RESULTS
Slide 23: 2020 Consolidated Income Statement
Full-year 2020 results / 25 February 2021 2020 CONSOLIDATED INCOME STATEMENT (€m) 2019 2020 Revenue 7,211 4,439 Group recurring EBIT* 378 (155) Group Recurring EBIT significant Income (loss) from equity-accounted companies** 6 (58) improvement in H2 at €63m (vs. -€218m in H1) Non-recurring/non-ope
Slide 24: 2020 Consolidated Statement of Cash Flows
Full-year 2020 results / 25 February 2021 2020 CONSOLIDATED STATEMENT OF CASH FLOWS (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) 2019 H1 2020 H2 2020 2020 Cash flow from (used in) operations before changes in working capital 495 (138) 106 (32
Slide 25: Strong Liquidity at Year-End with €1.6bn Available
Full-year 2020 results / 25 February 2021 STRONG LIQUIDITY AT YEAR-END WITH €1.6BN AVAILABLE €1.6bn available liquidity (as of 31/12/20) including €687m cash position and €950m undrawn RCF amount Debt maturity profile €m 1,637 950 586 493 498 481 359 90 687 271 183 300 498 496 222 298 3 59 Availab
Slide 26: Outlook
Full-year 2020 results / 25 February 2021 OUTLOOK Lagardère Publishing In light of exceptional 2020 year, 2021 revenue expected to normalise, taking into account: New Astérix release in Q4 2021, mitigated by lack of school reform Book sales to be impacted by progressive reopening of leisure
Slide 27: Appendices to the Consolidated Accounts
Full-year 2020 results / 25 February 2021 APPENDICES TO THE CONSOLIDATED ACCOUNTS
Slide 28: Changes in Scope: Main Items
Full-year 2020 results / 25 February 2021 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 • Acquisition in September 2020 of Laurence
Slide 29: Revenue by Geographic Area
Full-year 2020 results / 25 February 2021 REVENUE BY GEOGRAPHIC AREA 28% 28% 25% 25% 24% 25% 11% 10% 10% 9% 2% 3% 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 France Western Europe Eastern Europe USA & Canada Asia-Pacific Latin America, Middle East, Africa 29 29
Slide 30: Change in Revenue
Full-year 2020 results / 25 February 2021 CHANGE IN REVENUE (EXCLUDING LAGARDÈRE SPORTS, CLASSIFIED WITHIN DISCONTINUED OPERATIONS IN ACCORDANCE WITH IFRS 5) (€m) 7,211 275 288 (19) -0.8% 4,439 4,264 115 (2,575) 229 (59) (35) (40) (44) -60.4% 1,720 -20.7% -22.8% 2,384 2,375 2019 Lagardère Lagardère
Slide 31: Summary of Performance by Division – 2020
Full-year 2020 results / 25 February 2021 SUMMARY OF PERFORMANCE BY DIVISION – 2020 Revenue 2020 Consolidated Consolidated Like-for-like change* (€m) change change (%) (%) Lagardère Publishing 2,375 (9) (0.4) (0.8) Lagardère Travel Retail 1,720 (2,544) (59.7) (60.4) Other Activities 229 (59) (20.5
Slide 32: Analysis of Non-Recurring/Non-Operating Items
Full-year 2020 results / 25 February 2021 ANALYSIS OF NON-RECURRING/NON-OPERATING ITEMS Non-retained Lagardère scope Lagardère Travel Other Total target Total Total (former (€m) Publishing Retail Activities scope Lagardère Active) 2020 2019 Recurring EBIT* 246 (353) (47) (154) (1) (155) 378 Income (
Slide 33: Adjusted Profit – Group Share
Full-year 2020 results / 25 February 2021 ADJUSTED PROFIT – GROUP SHARE (€m) 2019 2020 Profit (loss) for the period 11 (688) Restructuring costs +42 +55 Gains/losses on disposals (134) +7 Impairment losses on goodwill, PP&E, intangible assets and investments +34 +151 in equity-accounted companies Am
Slide 34: Group Recurring EBIT to Adjusted Profit (Loss) – Group Share
Full-year 2020 results / 25 February 2021 GROUP RECURRING EBIT TO ADJUSTED PROFIT (LOSS) – GROUP SHARE (€m) 2019 2020 378 200 6 15 (19) (17) (39) (35) (58) (53) (76) (77) (155) (330) Income tax Group Income (loss) Interest expense excluding Adjusted profit (loss) Adjusted expense on lease Finance co
Slide 35: Free Cash Flow Reconciliation
Full-year 2020 results / 25 February 2021 FREE CASH FLOW RECONCILIATION (€m) 2019 2020 Cash flow from operating activities before changes in working capital 1,099 257 Repayment of lease liabilities (518) (236) Interest paid on lease liabilities (77) (49) Changes in working capital of lease liabiliti
Slide 36: Consolidated Balance Sheet
Full-year 2020 results / 25 February 2021 CONSOLIDATED BALANCE SHEET Equity and liabilities Assets* (€m) 31 Dec. 2019 31 Dec. 2020 31 Dec. 2019 31 Dec. 2020 1,672 Intangible assets 2,699 1,461 827 Total equity Right-of-use assets 2,436 (IFRS 16) 2,859 1,733 Net debt** 3,097 1,939 Lease liabilities O
Slide 37: Consolidated Balance Sheet
Full-year 2020 results / 25 February 2021 CONSOLIDATED BALANCE SHEET (€m) 31 Dec. 2019 31 Dec. 2020 Non-current assets 6,733 5,519 Investments in equity-accounted companies 73 52 Current assets 2,416 2,223 Short-term investments and cash 913 687 Assets held for sale 994 - TOTAL ASSETS 11,129 8,481 T
Slide 38: Glossary (1/3)
Full-year 2020 results / 25 February 2021 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 39: Glossary (2/3)
Full-year 2020 results / 25 February 2021 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
Slide 40: Glossary (3/3)
Full-year 2020 results / 25 February 2021 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 41: Impacts of IFRS 16 on the Consolidated Accounts
Full-year 2020 results / 25 February 2021 IMPACTS OF IFRS 16 ON THE CONSOLIDATED ACCOUNTS
Slide 42: Impact of IFRS 16 on the Consolidated Income Statement and Related Indicators
Full-year 2020 results / 25 February 2021 IMPACT OF IFRS 16 ON THE CONSOLIDATED INCOME STATEMENT AND RELATED INDICATORS (€m) FY 2019 FY 2020 Recurring EBITDA* - (2) Group recurring EBIT* +13 +13 Income from equity-accounted companies** - - Non-recurring/non-operating items +60 (17) Of which cancella
Slide 43: Impact of IFRS 16 on the Consolidated Statement of Cash Flows
Full-year 2020 results / 25 February 2021 IMPACT OF IFRS 16 ON THE CONSOLIDATED STATEMENT OF CASH FLOWS (€m) FY 2019 FY 2020 Cash flow from operating activities before changes in working capital +616 +295 Repayment of lease liabilities (519) (236) Interest paid on lease liabilities (77) (49) Changes
Slide 44: Impact of IFRS 16 on the Consolidated Balance Sheet
Full-year 2020 results / 25 February 2021 IMPACT OF IFRS 16 ON THE CONSOLIDATED BALANCE SHEET (€m) 31 Dec. 2019 31 Dec. 2020 (€m) 31 Dec. 2019 31 Dec. 2020 Total equity (134) (187) Non-current assets +2,934 +2,022 Non-current liabilities +2,535 +1,843 Right-of-use asset +2,859 +1,939 Lease liability