2017 GENERAL MEETING. Gérard Adsuar Chief Financial Officer. 4 May 2017

Transcription

1 2017 GENERAL MEETING Gérard Adsuar Chief Financial Officer 4 May 2017

2 CONTENTS KEY FIGURES FOR THE GROUP 2016 PERFORMANCE BY DIVISION 2016 GROUP FINANCIAL RESULTS FINANCIAL POSITION GUIDANCE 2

3 KEY FIGURES FOR THE GROUP Annual Ordinary and Extraordinary General Meeting 4 May 2017

4 HIGHLIGHTS Continued strong organic growth momentum in Travel Retail Solid performance from Lagardère Publishing Significant free cash flow generation and decrease in net debt ( m) Revenue 7,193 7,391 Recurring EBIT of fully consolidated companies** Group operating margin 5.3% 5.3% Profit Group share Adjusted profit*** Group share Free cash flow Net debt at end of the period (1,551) (1,389) Earnings per share (in ) Ordinary dividend per share (in ) **** +2.7% consolidated +2.5% like-for-like* +4.6% + 101m + 142m + 162m *At constant perimeter and exchange rates. **Recurring operating profit of fully consolidated companies. ***Excluding non-recurring/non-operating items. ****Ordinary dividend submitted for approval for

5 2016 RECURRING EBIT +13.5% + 378m - 25m + 353m + 400m + 395m + 47m - 5m 2015 Résop consolidated publié LTR - LTR Ajusté - des Recurring 2015 EBIT activités Distribution de Distribution* adjustment* 2015 à 2015 données comparables Comparable Performance Businessdes Performance branches 2016 à 2016 données comparables** Comparable** Effet du FX taux de 2016 Résop consolidated publié change Recurring 2016 EBIT *Effect of the disposals of the Swiss, US, Spanish, Canadian and Belgium activities. **Calculated using 2015 exchanges rates. 5

6 2016 PERFORMANCE BY DIVISION Annual Ordinary and Extraordinary General Meeting 4 May 2017

7 LAGARDÈRE PUBLISHING 2016 revenue by geographic area 2016 revenue by activity Spain 6% 6%* Other 17% 17%* France 28% 29%* Partworks 11% 11%* Other 15% 16%* Education 17% 16%* Illustrated Books 13% 17%* US & Canada 27% 25%* UK & Australia 22% 23%* General Literature 44% 40%* Change in recurring EBIT ( m) and operating margin (%) 9.0% 9.2% *% of revenue in

8 LAGARDÈRE TRAVEL RETAIL 2016 revenue by geographic area 2016 revenue by activity Eastern Europe 17% 17%* Other Western Europe 8% 11%* US & Canada 21% 9%* Italy 8% 8%* Spain 3% 10%* Asia-Pacific 10% 10%* Belgium 11% 12%* France 22% 23%* Distribution (Wholesale Distribution & Integrated Retail) 15% 27%* Travel Retail 85% 73%* Change in recurring EBIT ( m) and operating margin (%) 2.9% 2.9% 2.7% % Travel Retail Distribution 3.5% % *% of revenue in

9 LAGARDÈRE ACTIVE 2016 revenue by geographic area 2016 revenue by activity Other International 17% 13%* Spain 7% 6%* France 76% 81%* 8.2% 8.5% Radio 22% 21%* TV 32% 32%* Change in recurring EBIT ( m) and operating margin (%) Press 38% 41%* Pure Players and BtoB 8% 6%* *% of revenue in

10 LAGARDÈRE SPORTS AND ENTERTAINMENT 2016 revenue by geographic area 2016 revenue by activity Rest of World 21% 25%* France 21% 13%* Other 35% 32%* Media rights 21% 26%* Asia & Australia 18% 17%* Rest of Europe 14% 14%* UK 8% 9%* Germany 18% 22%* Marketing rights 44% 42%* Change in recurring EBIT ( m) and operating margin (%) 3.9% 3.9% *% of revenue in

11 2016 GROUP FINANCIAL RESULTS Annual Ordinary and Extraordinary General Meeting 4 May 2017

12 CHANGES IN CONSOLIDATED REVENUE 2016 Assemblée Générale du 3 mai 2016 ( m) , , Revenue Lagardère Publishing Lagardère Travel Retail Lagardère Active Lagardère Sports and Entertainment 2016 Revenue Revenue up 2.7% on a consolidated basis, up 2.5% like-for-like. Top-line growth largely driven by Lagardère Travel Retail (up 185m) and Lagardère Publishing (up 58m). Positive scope effect of 124m and negative currency effect of 95m. 12

13 RECURRING EBIT TO EBIT Assemblée Générale du 3 mai 2016 ( m) (77) (113) (62) (90) (69) (82) (27) Recurring EBIT of fully consolidated companies Income from equity-accounted companies* Restructuring costs Gains (losses) on disposals Impairment losses Amortisation** Cricket litigation in India EBIT *Before impairment losses. **Amortisation of acquisition-related intangible assets and acquisition-related expenses. 13

14 EBIT TO PROFIT GROUP SHARE Assemblée Générale du 3 mai 2016 ( m) (66) (49) (37) (69) (21) EBIT Net interest expense Income tax expense Profit attributable to minority interests Profit Group share 14

15 ADJUSTED PROFIT GROUP SHARE ( m) Profit Group share Restructuring costs* Gains (losses) on disposals* (24) (149) Impairment losses on goodwill, PP&E and intangible assets* Amortisation of acquisition-related intangible assets and other acquisition-related expenses* Cricket litigation in India (WSG) Tax contribution on dividends paid to shareholders Adjusted profit Group share *Net of taxes. 15

16 CONSOLIDATED STATEMENT OF CASH FLOWS ( m) Cash flow from operations before changes in working capital Changes in working capital Net interest paid and income taxes paid (103) (125) Net cash from operating activities Purchases of property, plant & equipment and intangible assets (259) (253) Disposals of property, plant & equipment and intangible assets Free cash flow Purchases of investments (568) (108) Disposals of investments (59) 133 Net cash from operating and investing activities (353) 441 Dividend paid and other (244) (279) Change in net debt (597) 162 Net debt (1,551) (1,389) Operating cash performance significantly up: +25% following +11% last year Non-recurring items in 2015 Higher taxes due to disposals Continued investments especially in Travel Retail (> 50% of total capex) Disposal of property assets Paradies acquisition in 2015 Positive cash generation post dividend 16

17 CONSOLIDATED BALANCE SHEET Assets* Liabilities ( m) Dec Dec Dec Dec Intangible assets 3,322 3,109 2,135 2,035 Shareholders equity 1,551 1,389 Net debt** Other assets 1,589 1,448 1,098 1,113 Other liabilities Working capital 2,762 2,712 2,889 2,732 Working capital 7,673 7,269 7,673 7,269 *Excluding assets included in net debt. **Net of cash, cash equivalents, short-term investments and derivative instruments documented as hedges of debt. 17

18 FINANCIAL POSITION Annual Ordinary and Extraordinary General Meeting 4 May 2017

19 FINANCIAL POLICY A tight rein on debt which allows a 500 million investment capacity A liquidity position which broadly covers upcoming maturities 3x Bonds 1,551m + 162m 500m Headroom 1,731m Bank loans & other Commercial paper 1,389m Authorised credit lines** 1,250m 829m 2,4x* 2.4x ** 2.2x Cash* 481m 501m 514m 6m 13m 7m 31/12/ /12/2016 Cash available & beyond Leverage Ratio Net debt/ Recurring EBITDA* *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 of Paradies recurring EBITDA. On a reported basis, the ratio is 2.6x. *Short-term investments and cash. **Group credit facility excluding authorised credit lines at divisions level. 19

20 GUIDANCE Annual Ordinary and Extraordinary General Meeting 4 May 2017

21 GUIDANCE 2017 guidance Group Recurring EBIT* growth in 2017 is expected to be between 5% and 8% versus 2016: - at constant exchange rates; and - excluding the impact from disposals of Distribution activities. *Recurring operating profit of fully consolidated companies. 21