PRESENTATION INVESTOR January 2018 DISCLAIMER Certain statements - - PDF document

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PRESENTATION INVESTOR January 2018 DISCLAIMER Certain statements - - PDF document

PRESENTATION INVESTOR January 2018 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,


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SLIDE 1

INVESTOR PRESENTATION

January 2018

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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 forecasts regarding Lagardère SCA’ results or any other performance indicator, but rather trends or targets, as the case may be. When used in this document, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “predict”, “hope”, “can”, “will”, “should”, “is designed to”, “with the intent”, “potential”, “plan” and other words of similar import are intended to identify forward-looking statements. Such statements include, without limitation, projections for improvements in process and operations, revenues and operating margin growth, cash flow, performance, new products and services, current and future markets for products and services and other trend projections as well as new business

  • pportunities.

Although Lagardère SCA believes that the expectation reflected in such forward-looking statements are reasonable, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including without limitations:

  • general economic conditions;
  • legal, regulatory, financial and governmental risks related to the businesses;
  • certain risks related to the media industry (including, without limitation, technological risks);
  • the cyclical nature of some of the businesses.

Please refer to the most recent Reference Document (Document de référence) filed by Lagardère SCA with the French Autorité des marchés financiers for additional information in relation to such factors, risks and uncertainties. No representation or warranty, express or implied, is made as to, and no reliance should be placed upon, the fairness, accuracy, completeness or correctness of such forward-looking statements and Lagardère SCA, as well as its affiliates, directors, advisors, employees and representatives accept no responsibility in this respect. Accordingly, we caution you against relying on forward-looking statements. The forward-looking statements abovementioned are made as of the date of this document and neither Lagardère SCA nor any of its subsidiaries undertake any obligation to update or review such forward-looking statements whether as a result of new information, future events or otherwise. Consequently neither Lagardère SCA nor any of its subsidiaries are liable for any consequences that could result from the use of any of the above statements.

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SLIDE 3

GROUP PROFILE slide 4 GROUP STRATEGY slide 8 slide 15 slide 19 slide 23 slide 26 GROUP PERFORMANCE slide 29 Appendix slide 40

TABLE OF CONTENT

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SLIDE 4

GROUP PROFILE

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SLIDE 5

Consommation

Mobility Digital is a growth driver for content consumption (multi- binge-viewing) Creation of a worldwide middle class, happy to travel and experience worldwide cultural products International offering adjusted to local specificities: shops, sport events, medias and entertainment Nomadism, globalisation of travel: increase in PAX Consumption Digitalisation Glocalisation

A FAST-CHANGING GLOBAL ENVIRONMENT SHAPED BY 4 KEY GROWTH DRIVERS

5

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SLIDE 6

Assemblée Générale du 4 mai 2017

Source: Lagardère, ACI, 2016 World Airport Traffic Forecasts.

Growth in air passengers travel [in %, 2015-2040]

GROUP LONG-TERM GROWTH BASED ON WORLDWIDE INCLINATION TOWARDS EXPERIENCE: TRAVEL AND CULTURE EXPERIENCES

Source: Airbnb travel report 2016.

Travel is key for millenials & BRICs

CAGR: 4.9 %

Latin America +4.6% North America +2.8% Europe +3.7% Asia- Pacific +6.2% Middle East and Asia +7.7% Africa +4.2%

6

Discretionary categories are showing the fastest growth

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SLIDE 7

50% 31%

  • No. 3 worldwide in Travel

Retail

  • Robust expertise in three

business lines

  • Leader in football in Africa,

Asia and Europe

  • Leader in sponsorship and

media rights globally

  • Leader in golf globally

7%

2016 revenue breakdown by division

  • No. 3 worldwide (Trade)
  • A multi-segment publisher
  • A major player in the digital

sector

12%

  • No. 1 in TV Production in

France

  • One
  • f

France's leading Internet and mobile media groups

  • Major player in Press and

Radio in France

A DIVERSIFIED GROUP WITH LEADING BRANDS AND MARKET POSITIONS

2016 revenue breakdown by region

France 30% Europe 39% US and Canada 20% Latin America, Africa, Middle East 2% Asia- Pacific 9%

7

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SLIDE 8

GROUP STRATEGY

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SLIDE 9

OUR STRATEGY IS FOCUSED ON LONG-TERM VALUE CREATION Successful business portfolio overhaul focused on growth Strategic plan focused on profitability and cash generation A well-balanced, prudent financial strategy

3 2 1

9

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SLIDE 10

SUCCESSFUL OVERHAUL OF OUR PORTFOLIO

1

31% 50% 12% 7%

*Proportionate consolidation of EADS at 15.04%.

Major disposals Revenue by division

2007 2006 2011 2014 2016 2017 2015 Distribution In Hungary Distribution in Belgium and Spain Distribution in Switzerland and the US 10 French magazines International magazines French regional dailies, Virgin Megastore Distribution in Germany 7.5% of Le Monde Interactif 2013 7.4% of 20% of 25% of

Retail

2005

Major acquisitions 2016 2003

EADS 36% Press 16% Books 8% Lagardère Active Broadcast 5%

* Lagardère Media

Distribution Services 35% 10

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SLIDE 11

A BALANCED PORTFOLIO SET UP FOR GROWTH AND SUSTAINABLE CASH GENERATION

1

Growth engine Cash generation today

Low High

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SLIDE 12

INCREASING PROFITABILITY IS A PRIORITY

Consolidated recurring EBIT (€m) and operating margin (%)

339 395

2012 2016

4.6% 5.3%

Revenue stable over the period

2

Main factors/measures

  • Restructuring and sale of the Distribution business.
  • Improved product mix and purchase conditions.
  • Synergies resulting from acquisitions.
  • Restructuring of declining activities.
  • Shift in business portfolio to focus on TV Production.
  • Revenue diversification.
  • Restructuring of the premium media rights business

in Europe.

  • Portfolio rationalization.
  • Operating efficiency drive.
  • Cost control discipline.
  • Office and warehouse space optimized in France, in

the UK and in the US.

  • Cost synergies resulting from acquisitions.

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SLIDE 13

SHARP RISE IN CASH FLOW GENERATION FUELLED BY HIGH LEVEL OF INVESTMENTS

193 202 234 136 161 161 194 168 59 68 63 253 24 32 84 (34) (16) (18)

403 447 557 557

2014 2015 2016 Allocation of 2016

  • perating cash flow

Lagardère Publishing Lagardère Travel Retail Lagardère Active Lagardère Sports and Entertainment Other

+11%

+25%

2

45% investment spending 30%: ordinary dividend 25%: reduction in debt and

  • ther*

*Includes mainly translation adjustments and payments of taxes and interest.

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SLIDE 14

31/12/2015 31/12/2016

A WELL BALANCED, PRUDENT FINANCIAL STRATEGY

2,4x*

*Defined as the sum of (i) recurring EBIT of fully consolidated companies, (ii) depreciation and amortisation of property, plant and equipment and intangible assets and (iii) dividends received from equity-accounted companies. **On a proforma basis (as per credit facility covenant), including 12 months

  • f Paradies’ recurring EBITDA. On a reported basis, the ratio is 2.6x.

Headroom

€1,551m €1,389m

2.2x 2.4x **

€500m

+ €162m

3x

Leverage Ratio

Net debt/ Recurring EBITDA*

1.3 1.3 1.3 1.3 1.3 9.0 6.0

2012 2013 2014 2015 2016 Dividende ordinaire Dividende extraordinaire

Historical dividends (€/share)

  • Ordinary dividend stable over the long term (€ per share).
  • Large payouts to shareholders following the one-off sale
  • f non-strategic shareholdings.
  • Attractive ordinary dividend yield given the current climate
  • f low interest rates.

***Yield based on the closing share price of €26.73 at 02 January 2018.

4.9%***

…and providing long-term viability for an attractive dividend payout policy

Ordinary dividend Extra dividend

A tight rein on debt which allows a €500 million investment capacity

3

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SLIDE 15
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SLIDE 16

4,980 3,715 2,066

France 28% UK & Australia 22% US & Canada 27% Spain 6% Other 17%

SUCCESSFUL PORTFOLIO OF PUBLISHING BUSINESSES WITH SOLID LEADING POSITIONS IN CORE MARKETS

2016 revenue by geographic area

*Consumer (trading and education).

Based on 2015 average exchange rates. Revenues from STM, professional markets and other activities than book publishing have been excluded when it could be isolated. Sources: Annual reports, Internal estimates, lpsos, Nielsen Bookscan.

Ranking in core markets*

#1 #2 #3 #4 #2

Top 3 Consumer book publishers worldwide

Based on 2015 pro-forma turnover (€m) (Consumer: Trade & Education including Higher Education)

Education 17% Illustrated Books 13% General Literature 44% Partworks 11% Other 15%

2016 revenue by activity

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SLIDE 17

GROWTH FUELLED BY ACQUISITION AND INTERNATIONAL DEVELOPMENT

959 2,264

2003 2016

234 Revenue evolution (€m) and cash flow from operations before changes in working capital (2003-2016) Growth fuelled by acquisitions (2003-2016)

Revenue Cash flow from operations before changes in working capital

83

2009 2008 2007 2006 2004 2003

A.

2011 2013 2014 2016 2015

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SLIDE 18

Mobile apps Exploring new opportunities: UK mobile gaming startups acquisitions for cross-fertilization with all imprints (Neon Play / Brainbow - Peak). E-education

RIDING THE DIGITAL WAVE

E-publishing Spearheading new educational practices: from the digital multi-support version of a textbook to enhanced classroom content including game-changing self-assessment, solutions: acquisition of Rising Stars. Reinforcing leadership: Bookouture / acquisition of Britain’s leading independent e-publisher. E-books E-books contribution to Lagardère Publishing's overall revenue: 8.0% in 2016.

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SLIDE 20

France 26% North America 24% Asia- Pacific 12%

HIGH GROWTH BUSINESS WITH LEADING POSITIONS IN ITS 3 SEGMENTS

2016 revenue* by geographic area Ranking in core markets Top 10 Travel Retail operators worldwide 2016 revenue by activity

Top 5

#1

Top 10

Core Duty Free

#1

Fashion Travel Essentials Foodservice

Duty Free & Fashion Foodservice Travel Essentials

0.9 4.8 1.6 0.4 2.0

4.4 5.7 4.0 3.8 3.8 2.8 2.5 2.3 2.0 1.7 €bn, pro-forma**

**Acquisitions made by Lagardère Travel Retail In 2015 consolidated at 100% for the full year (Paradies) / Sales @100%. Sources: Companies reports, The Moodie Report, Lagardère Travel Retail estimates

Travel Essentials 46% Duty Free & Fashion 38% Foodservice 16%

*IFRS revenue, excluding Distribution.

Europe (excl. France) 38%

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DIVERSIFIED GROWTH PATHS

JFK airport (New York): acquisition of 17 stores Poland: master concession won at Gdansk airport US: acquisition of Paradies (present in more than 76 airports)

Gain of new concessions

External Growth Organic Growth

Creation of the 3rd largest player in North America Expansion of existing concessions

Rome: Food & Duty Free in Avancorpo Terminal Nice: opening of new T1 with an innovative food concept November 2016 December 2016 October 2015 April 2015 Riyad, Dammam, Djeddah: Duty Free End 2016

A strong development driven both by organic growth and M&A

September 2015

2,853 4,162

230 278 801 508

2013 revenue Organic growth External growth 2016 revenue +46%

*Net of contracts terminated over the period.

[Bridge sales growth (€m, revenue @100%, 2013–2016)]

New concessions* Existing concessions

61% 39%

Hong Kong: Liquor & Tobacco (with China Duty Free Group) Early 2017 Abu Dhabi: Duty Free & Foodservice December 2015 Geneva: Duty Free Early 2017

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IMPROVEMENT OF CASH GENERATION BACKED BY A RESILIENT BUSINESS MODEL

Travel Retail Cash Flow from Operations*

95 121 135 188

2013 2014 2015 2016

+95%

*Travel Retail perimeter only (excluding Distribution) – Cash Flow from Operations before working capital. **Capex Travel Retail, excluding Distribution.

Breakdown of Capex**

46 52 44 82 48 44 66 56

4,0% 3,5% 4,3% 4,4%

0,0% 1,0% 2,0% 3,0% 4,0% 20 40 60 80 100 120 140 160

2013 2014 2015 2016

Growth CAPEX Renewal CAPEX % of revenue

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SLIDE 23
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SLIDE 24

A DIVERSIFIED BUSINESS MIX WITH SOLID LEADING POSITIONS

2016 revenue by geographic area 2016 revenue by activity

France 76% Spain 7%

Peers Sound market positions

#1 #1 #3 #1 Magazine publisher in France TV production group in France Internet in France Youth and family TV channels in France

La partie de l'image avec l'ID de relation rId25 n'a pas été trouvé dans le fichier.

PRESS Radio + TV + Internet

Other International 17% Press 38% TV 32% Radio 22% Pure Players & BtoB 8%

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SLIDE 25

SUSTAIN PROFITABILITY AND DEVELOP PROMISING GROWTH DRIVERS

Accelerate the development of digital through content and services

e-health development Acquisition of Grupo Boomerang TV in Spain Development in Africa & Asia

  • Keewu in Senegal
  • Diffa*
  • Vibe Radio in Abidjan
  • LVMG in Cambodia

Secure a profitable development Reinforce audiovisual activity Focus on the strongest print media brands and diversify their sources of revenue

*Distribution Internationale de Films Africains / International Distribution of African Movies.

64 78

2012 2016

6.4% margin 8.5% margin

CAGR 2012-16 +5%

  • Employment protection

plan in 2013.

  • Voluntary redundancy

plan in 2016.

25

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SLIDE 26
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SLIDE 27

Germany 18% France 21% Asia & Australia 18% Rest of Europe 14% Rest of World 21%

A GLOBAL NETWORK COMBINING INTERNATIONAL EXPERTISE WITH LOCAL MARKET KNOWLEDGE

2016 revenue by geographic area 2016 revenue by activity

UK 8% Marketing rights 44% Other 35% Media rights 21%

Leading Positions Competitive Landscape

#1 #1 #1 In football in Africa, Asia and Europe In sponsorship and media rights globally In golf globally

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SLIDE 28
  • Consolidate and expand

comprehensive business on existing territories in Football Europe

  • Focus on AFC & CAF next cycles
  • Continue to grow the media

rights distribution portfolio, leveraging our global platform in tennis

  • Focus on Olympic Games

(dedicated team, marketing programs…)

with AFC

A SUCCESSFUL RECOVERY PLAN TO PREPARE FOR GROWTH

PRESERVING LONG TERM PARTNERSHIPS YEARS

22

  • f continuous partnership

> Contract until 2028 > Contract until 2020

EUROPEAN FOOTBALL

Long-term partnerships with CAF

70

YEARS

21

  • f continuous partnership

Tailored partnerships

& RUGBY CLUBS

DEVELOPING BRAND CONSULTING AND DIGITAL SERVICES

Brand Consulting

  • Acquisition of EKS (specialized

bid consultancy agency), Akzio! (sponsoring agency) and Sponsorship 360 (activation)

Digital Services

  • Comprehensive digital strategies
  • Mobile and tablet apps for

rights-holders

  • Social apps & activations for

rights-holders and brands

  • Production & management
  • f digital content

STRENGHTENING CORE SALES ACTIVITIES

(33) 20

2012 2016

n.m. 3.9%

Division returned to profitability in 2014

28

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SLIDE 29

GROUP PERFORMANCE IN H1 2017

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SLIDE 30

HIGHLIGHTS

(€m) H1 2016 H1 2017 Revenue 3,431 3,306 Recurring EBIT* 101 136 Group operating margin* 2.9% 4.1% Profit – Group share 44 29 Adjusted profit – Group share* 65 72 Free cash flow*/** 56 (67) Net debt* at end of period*** (1,389)*** (1,677)

*Alternative Performance Measure (APM) – See definitions on slides 53 and 54. **Free cash flow impacted by +€9m in H1 2016 and +€23m in H1 2017 of interest paid/received following a change in accounting method related to the consolidated statement of cash flows (see note 1.1 to the interim consolidated financial statements). ***Net debt as of 31 December 2016.

  • 3.6% consolidated

+5.4% like-for-like* +10.8% +€35m +1.2pts

  • Growth lifted by good

momentum at Travel Retail and brisk activity at Lagardère Publishing

  • Profitability fuelled by a

favourable calendar at Lagardère Sports and Entertainment

  • Cash flow from
  • perations up by 8.3%

reflecting the good

  • perating performance

Free cash flow negatively impacted by working capital seasonality

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LAGARDÈRE PUBLISHING: ACTIVITY

*% of revenue in H1 2016.

France 26% UK & Australia 21% US & Canada 29% Spain 5% Other 19%

28%* 21%* 19%* 5%* 27%*

H1 2017 revenue by geographic area

Education 13% Illustrated Books 11% General Literature 45% Partworks 14% Other 17%

13%* 43%* 14%* 14%*

H1 2017 revenue by activity

16%*

36 172 41

3.7% 13.3% 4.0% H1 2016 H2 2016 H1 2017

Change in recurring EBIT (€m) and operating margin (%)

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LAGARDÈRE TRAVEL RETAIL: ACTIVITY

*% of revenue in H1 2016.

Duty Free & Fashion 38% Travel Essentials 45% Wholesale Distribution 1% Foodservice 16%

18%* 30%* 13%* 39%*

H1 2017 revenue by activity

France 24% Belgium 0% Eastern Europe 18% Spain 2% Italy 9%

0%* 22%* 3%* 21%* 17%* 12%* 10%* 8%* 7%*

US & Canada 24% Middle East 1%

H1 2017 revenue by geographic area

Asia-Pacific 11% Other Western Europe 11%

Change in recurring EBIT (€m) and operating margin (%) 9 4 27 68 32

H1 2016 H2 2016 H1 2017

2.0% 2.9% 1.8% 4.1% 1.6%

Travel Retail Distribution

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SLIDE 33

LAGARDÈRE ACTIVE: ACTIVITY

*% of revenue in H1 2016.

France 76% Spain 7% Other International 17%

17%* 76%* 7%*

Press 41% TV 29% Radio 23%

22%* 29%* 40%* 9%*

Pure Players & BtoB 7%

H1 2017 revenue by geographic area H1 2017 revenue by activity

33 45 32

7.6% 9.4% 8.0% H1 2016 H2 2016 H1 2017

Change in recurring EBIT (€m) and operating margin (%)

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LAGARDÈRE SPORTS AND ENTERTAINMENT: ACTIVITY

20 20

Change in recurring EBIT (€m) and operating margin (%)

*% of revenue in H1 2016.

Marketing rights 46% Other 32%

34%* 48%* 18%*

Media rights 22% Germany 23% France 23% Asia & Australia 15% Rest of World 23%

16%* 7%* 21%* 27%* 16%* 13%*

UK 5% Rest of Europe 11%

H1 2017 revenue by geographic area H1 2017 revenue by activity

5 15 35

2.1% 5.3%

H1 2016 H2 2016 H1 2017

13.6%

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CONSOLIDATED STATEMENT OF CASH FLOWS

*Impacted by +€9m in H1 2016 and +€23m in H1 2017 of interest paid/received following a change in accounting policy related to the consolidated statement of cash flows **Including €2m of interest received in H1 2016 and €3m in H1 2017.

(€m) H1 2016 H1 2017 Cash flow from operations before changes in working capital

181 196

Changes in working capital

(153) (231)

Income taxes paid

(27) (50)

Net cash from (used in) operating activities*

1 (85)

Purchase of property, plant & equipment and intangible assets

(133) (131)

Disposals of property, plant & equipment and intangible assets

188 149

Free cash flow*

56 (67)

Purchase of investments

(89) (37)

Disposals of investments**

100 3

Net cash from (used in) operating & investing activities

67 (101)

Dividend paid and other

(244) (161)

Interest paid

(11) (26)

Change in net debt

(188) (288)

Up 8.3%

Traditional working capital seasonality impacted by expected reversal from 2016 (Lagardère Publishing) Sustained strong level

  • f investment

Disposal of real estate properties

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SLIDE 36

€469m €13m €132m €14m €497m €497m €808m €756m €1,250m Authorised credit lines (1): Cash (2):

FINANCING POLICY

  • Delivering a leverage ratio of close to 2.5x

thanks to tight rein on debt and the favourable impact of recurring EBITDA.

30/06/2016 31/12/2016 30/06/2017

€1,389m 2.8x **

Leverage ratio

Net debt/Recurring EBITDA*

€1,739m 2.2x 2.6x €1,677m

*Alternative Performance Measure (APM) – See definitions on slides 53 and 54. **On a proforma basis (as per credit facility covenant), including 12 months of Paradies’ recurring EBITDA.

  • Bond matured in October 2017 was refinanced ahead
  • f term at attractive conditions with the €300m June

issue, while extending the debt maturity.

(1) Group credit facility excluding authorised credit lines at divisional level. (2) Short-term investments and cash. (3) €500m at 2% maturing in September 2019. (4) €500m at 2,75% maturing in April 2023 & €300m at 1,625% maturing in June 2024.

€6m

Bonds Bank loans and other Commercial paper

36

(3) (4)

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(€m) Q3 At 30 September

2017 revenue 1,852 5,158 2016 revenue 1,976 5,407 Consolidated growth

  • 6.3%
  • 4.6%

Like-for-like growth* +2.2% +4.2%

UPDATE: Q3 2017 REVENUE

After a solid first-half performance, the Lagardère group continued its like-for-like growth momentum, buoyed by good results at Lagardère Travel Retail.

*Alternative Performance Measure (APM). See definition on slide 53.

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GUIDANCE

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2017 GUIDANCE “Group recurring EBIT growth is expected to be between 5% and 8% versus 2016, at constant exchange rates and excluding the impact from disposals of Distribution activities.”

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APPENDIX: BUSINESS UPDATES

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PERSEUS ACQUISITION

  • Date of creation: 1996
  • Date of acquisition: 1st April 2016
  • 2015 revenue: ≈ €90m
  • Activities: Non-fiction / Backlist publishing programs
  • 9 imprints: Avalon Books, Basic Books, DACapo Press, Public Affairs, Running Press…
  • Market Positionning: Major general trade publisher in the US
  • Markets: US + UK
  • Synergies: The synergies for us will come to finding our own way out of the global Perseus

infrastructure and running the business through our own infrastructure, which will take about 18 months.

EXPANSION OF NON-FICTION AND BACKLIST PUBLISHING PROGRAMS

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Contracts are awarded through tender offer processes where travel retail operators answer RFPs on “packages” depending on the retail space location and / or the product line targeted

Duty Free & Fashion Travel Essentials Foodservice

Surface (sqm) Capex (€/sqm) Length (years) Rent (% of sales) Exclusivity

500 – 10,000 30 – 200 50 – 300 3,000 – 5,000 (incl. brand contrib.) 1,000 – 3,000 2,000 – 5,000

(incl. kitchen)

5 – 10 5 – 7 7 – 10 15 – 45 8 – 30 10 – 35

Rare

(de facto in some cases)

1) Ratios 90% within standard deviation from the mean 2) MG could be fixed, indexed on traffic and/or inflation, monthly or annual

Most of the time supported by a Minimum Guaranteed(2)

Main ratios(1) Business Line

KEY FEATURES AND RATIOS OF TENDER OFFERS IN THE AIRPORT TRAVEL RETAIL ENVIRONMENT

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SLIDE 43

*Other mainly includes: travel accessories, gifts & souvenirs and convenience products (phone cards, lottery, …).

[in €m, revenue@100% 2011-2016]

A favourable product mix evolution

TRAVEL RETAIL ORGANIC GROWTH DRIVERS

17% 15% 14% 15% 16% 14% 10% 10% 7% 10% 15% 20% 5% 6% 10% 10% 15% 16% 16% 14% 9% 9% 10% 9% 25% 24% 19% 17% 6% 6% 6% 5% 2011 2013 2015 2016

Liquor Tobacco Gourmet food & Confectionary Fashion Food & Beverage Print Other*

€2.3bn €2.9bn €3.6bn €4.2bn

CAGR +12% CAGR +12% CAGR +16%

Perfume & Cosmetics

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GROWTH HAS BEEN DRIVEN BY THE AWARD OF MAJOR TENDER OFFERS IN ALL THREE BUSINESSES…

Focus on major airport tender offers won since 2014

Luxembourg Auckland Krakow Hong Kong Abu Dhabi Riyadh & Dammam & Jeddah

2015 2014 2017 Award date

Warsaw T1 Reykjavik Melbourne T4 Phoenix Gdansk

2016

Hong Kong Geneva Prague 44

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SLIDE 45

… AND BY SELECTIVE M&A OPERATIONS

Focus on M&A operations performed in 2014 and 2016

Coffee Fellows

 Closed in January 2014  18 PoS in German train stations  Operations in Foodservice  Annual sales: €10m

Inflight Service activities in Poland and Northern Ferries

 Signed in October 2016  9 PoS in airports and seaport  Operations in Duty Free  Annual sales: €20m

Gerzon

 Closed in January 2014  12 PoS in Schiphol airport  Operations in Fashion  Annual sales: €55m

Airest

 Closed in April 2014  200 PoS in 11 countries  Operations mainly in Foodservice  Annual sales: €200m

Saveria

 Closed in April 2015  17 PoS located at JFK T4  Operations in Fashion & Conf.  Annual sales: €20m

Paradies

 Closed in October 2015  520 PoS located in 75 airports  Operations in the 3 businesses  Annual sales: €480m 45

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SLIDE 46

Source: Paradies internal data.

PARADIES LAGARDÈRE: CREATING A REGIONAL LEADER

Paradies Lagardère 2015 key figures

#3

in North America

100

airports

6,000

employees

$770m

revenue

A new entity managed by an experienced leadership team A unique and complementary North American footprint A brand portfolio tailor made for the North American market A strong and long-lasting relationship with landlords

Overview of Paradies Lagardère

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ABU DHABI INTERNATIONAL AIRPORT: A MAJOR STEP IN MIDDLE-EAST

Source: Lagardère Travel Retail internal data.

 10-year contract on core duty free categories, confectionery and fine foods  13 PoS over 3,000 sqm  10-year estimated cumulated revenue: €3bn  9 Food and Beverage contracts awarded in April 2016

Key figures

Le Club iconic shop Multi-category shops

Overview of Abu Dhabi contract awarded

50/50 joint venture created to bid and run operations

47

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ELLE BRAND: REVENUE DIVERSIFICATION

48

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SLIDE 49

2018 SPORTS EVENTS CALENDAR

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

2018

49

FOOTBALL AFRICA CHAN 2018 AFCON 2019 QUALIFIERS WOMEN AFCON SUPER CUP CHAMPIONS LEAGUE & CONFEDERATION CUP FOOTBALL EUROPE FIFA WORLD CUP 2018 FOOTBALL ASIA AFC CHAMPIONS LEAGUE + AFC CUP AFC U23 AFC WOMEN AFC U16 / U19 AFC FUTSAL AFF 2018 GOLF SINGAPORE OPEN NORDEA MASTER AUSTRALIA OPEN TENNIS ATP + WTA BASTAD & CITI OPEN WTA FINALS SINGAPORE & STOCKHOLM OPEN OLYMPIC GOLD COAST 2018 COMMONWEALTH GAMES

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APPENDIX: FINANCIAL UPDATES

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PROACTIVE, MEASURED MANAGEMENT OF OUR ASSETS...

*Disposals include the sale of interests in EADS (€2,272m) and Canal+ France (€1,017m). **Defined as the sum of (i) recurring EBIT, (ii) depreciation, amortisation and impairment, and (iii) dividends received from equity-accounted companies.

Cumulative cash flows from

  • perations and disposals

Cumulative utilisation of cash

Cumulative cash flows from operations and disposals in 2006-2016 (€m)

Leverage ratio: Net debt/recurring EBITDA** 2.4x 2.4x 2.2x 2.2x 7,308 38% 4,553 22% 37% 3% Cash flows from

  • perations

Disposals* Shareholder return Organic growth Acquisitions Other

2006 2016

2006-2016 cum. cash flows: €11.9bn

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SLIDE 52

AN EXCELLENT SHAREHOLDER RETURN OVER THE LAST 5 YEARS

100

*Source: Bloomberg (Total Return Index [gross dividend]).

Shareholder return*

2012 2013 2014 2015 2016 2017 Indexes rebased (100 at 2 January 2012) Lagardère CAC 40 STOXX Europe 600 Media Dufry

317 220 198 Lagardère share: +217% CAC 40: +98% STOXX Europe 600 Media: +120% Dufry: +85% 185

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SLIDE 53

DEFINITIONS (1/2)

Lagardère uses alternative performance indicators 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 manage the business, as well as by investors in order to monitor the Group's operating performance, along with the financial metrics defined by the IASB. These indicators are calculated based on elements taken from the consolidated financial statements prepared under IFRS and a reconciliation with those accounting items is provided either in this presentation or in the notes to the consolidated financial statements.

  • The like-for-like change in revenue is calculated by comparing:
  • H1 2017 revenue to exclude companies consolidated for the first time during the period, and H1 2016 revenue to exclude companies divested

in H1 2017;

  • H1 2017 and H1 2016 revenue based on H1 2016 exchange rates.

(See reconciliation in note 1.2 to the consolidated financial statements for the six months ended 30 June 2017)

  • Recurring EBIT. The Group's main performance indicator is recurring operating profit of fully consolidated companies (Group recurring

EBIT), which is calculated as follows: Profit before finance costs and tax excluding:

  • Income (loss) from equity-accounted companies before impairment losses;
  • Gains (losses) on disposals of assets;
  • Impairment losses on goodwill, property, plant and equipment, intangible assets and investment in equity-accounted companies;
  • Net restructuring costs;
  • Items related to business combinations:
  • Acquisition-related expenses;
  • Gains and losses resulting from acquisition price adjustments and fair value adjustment due to changes in control;
  • Amortisation of acquisition-related intangible assets.
  • Specific major disputes unrelated to the Group's operating performance.

(See reconciliation in note 3 to the consolidated financial statements for the six months ended 30 June 2017)

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SLIDE 54

DEFINITIONS (2/2)

  • 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 consolidated companies (Group recurring EBIT) plus

dividends received from equity-accounted companies, less amortisation and depreciation charged against intangible assets and property, plant and equipment.

  • Adjusted profit – Group share is calculated on the basis of profit - Group share, excluding non-recurring/non-operating items, net of tax and

minority interests, as follows: Profit - Group share excluding:

  • Gains (losses) on disposals of assets;
  • Impairment losses on goodwill, property, plant and equipment, intangible assets and investments in equity-accounted companies;
  • Net restructuring costs;
  • Items related to business combinations:
  • Acquisition-related expenses;
  • Gains and losses resulting from purchase price adjustments and fair value adjustments due to changes in control;
  • Amortisation of acquisition-related intangible assets.
  • Specific major disputes unrelated to the Group's operating performance;
  • Tax effects of the above items, including the tax on dividends paid in France.
  • Free cash flow is calculating as cash flow from operations plus net cash flow relating to acquisitions and disposals of intangible assets and

property, plant and equipment. (See reconciliation in note 3 to the consolidated financial statements for the six months ended 30 June 2017)

  • Net debt is calculated as the sum of the following items: Short-term investments and cash and cash equivalents, Financial instruments allocated

as hedges of debt, Non-current debt and Current debt (See reconciliation in note 15 to the consolidated financial statements for the six months ended 30 June 2017)

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SLIDE 55

LAGARDÈRE IR TEAM AND CALENDAR

IR team details

Florence Lonis Chief of Investor Relations Tel: +33 1 40 69 18 02 flonis@lagardere.fr Dounia Amouch Investor Relations Officer Tel: +33 1 40 69 67 88 damouch@lagardere.fr Sophie Reille Assistant Tel: +33 1 40 69 19 22 sreille@lagardere.fr Address: 42 rue Washington - 75408 Paris - France Tickers: Bloomberg (MMB FP), Reuters (LAGA.PA)

Calendar

(all time is CET)

  • Publication of full-year 2017 revenue

8 February 2018 at 8:00 a.m. (conference call at 10:00 a.m.).

  • Publication of full-year 2017 results

8 March 2018 at 5:35 p.m.

55