2015 Full-Year Results · 2015 Full-Year Results 9 March 2016 Disclaimer 2 Certain statements...

9 March 2016

2015 Full-Year Results


9 March 2016

Disclaimer

2

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 within the meaning of European Regulation

No. 809/2004.

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 opportunities.

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, including in particular growth in Europe and North America;

• 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.

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.

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.

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.


9 March 2016

Contents

3

Key Group figures pages 4 to 8

Performance by division pages 9 to 19

Group financial results pages 20 to 27

Appendices to consolidated accounts pages 28 to 40

Significant events pages 41 to 64

Key Group figures


9 March 2016

Key Group

figures

5

(€m) 2014* 2015

Reported change

Like-for-like change**

Sales 7,170 7,193 +0.3% +3.0%

Recurring EBIT of fully consolidated companies***

342 378 +10.5% /

Group operating margin 4.8% 5.3% +0.5 pt /

Profit – Group share 41 74 +€33m /

Adjusted profit – Group share 185 240 +€55m /

Free cash flow (23) 274 +€297m /

Net debt at end of the period (954) (1,551) -€597m /

Earnings per share (in €) 0.32 0.58 +81.3% /

Ordinary dividend per share (in €) 1.30 1.30**** = /

*The retrospective application of IFRIC 21 “Levies” has no significant impact on 2014 P&L figures: The new interpretation IFRIC 21 modifies the obligating event that gives rise to the recognition of a liability to pay a levy or contribution. The obligating event for the recognition of the liability is now the activity that triggers the payment of the levy, as defined by the tax authorities.

**At constant perimeter and exchange rates. / ***See definition slide 40. ****Ordinary dividend that will be recommended at the General Shareholder’s Meeting on 3 May 2016.

Sales: a negative perimeter of -€393m, and a positive currency effect of €222m.


9 March 2016

2015 Recurring

EBIT, slightly

above

the full-year

guidance

6

*Effect of Swiss Distribution activity and Curtis disposals.

**Calculated using 2014 exchange rates.

***Effect of Paradies and Grupo Boomerang TV acquisitions.

2014 ReportedEBIT

LTR -Distributionadjusment*

2014Comparable

BusinessPerformance

2015Comparable**

Scopeadjustment***

FX 2015 ReportedEBIT

+€11m +€11m

+€342m

-€15m

+€327m +€356m +€378m

+8.8%

+€29m


9 March 2016

Changes

of scope:

main items

(1/2)

7

Lagardère Publishing

• Acquisition of UK book publisher Rising Stars in December 2014.

Full consolidation starting 1 January 2015.

• Acquisition of UK book publisher Nicholas Brealey Publishing group.

Full consolidation starting 1 July 2015.

Lagardère Travel Retail

• Disposal of Swiss Distribution activity (Press Distribution and Integrated

Retail, 180 stores), deconsolidated since March 2015.

• Disposal of Curtis Circulation Company, a US national distributor of

magazines, deconsolidated since June 2015.

• Acquisition of 17 retail stores (fashion and confectionary) at JFK airport.

Full consolidation starting 1 May 2015.

• Acquisition of Paradies, an airport travel retail leader in North America

operating in more than 76 airports in the US and Canada. Full consolidation

starting 1 November 2015.


9 March 2016

Changes

of scope:

main items

(2/2)

8

Lagardère Active

• Acquisition of the Spanish group of TV production Grupo Boomerang TV.

Full consolidation starting 1 June 2015.

Lagardère Sports and Entertainment

• Acquisition of UFA Sports, a sports marketing agency in Germany.

Full consolidation starting 1 July 2015.

• Acquisition of akzio! ajoint. group, the market leading sponsoring agency

in Germany. Full consolidation starting 1 September 2015.

• Acquisition of the Bataclan concert hall. Full consolidation starting

1 October 2015.

• Acquisition of Event 360 and Sponsorship 360, consulting and activation

business agencies. Full consolidation starting 1 December 2015.

Performance by division


9 March 2016

Lagardère

Publishing:

activity

10

France 29%

UK & Australia

23%

US & Canada

25%

Spain 6%

Other 17%

2015 sales by geographical area

31%*

21%*

18%*

6%*

24%*

Education 16%

Illustrated Books 17%

General Literature

40%

Partworks 11%

Other 16%

2015 sales by activity

40%*

16%*

15%*

12%*

17%*

*% of sales in 2014.

2015 sales: €2,206m (+10.1% reported and +1.7% like-for-like).

• Activity growth was driven by the excellent performance in France in Illustrated Books and General Literature, and to a lesser extent to the good momentum in Education in Spain and in Partworks.

• A positive perimeter of +€28m, and a positive currency effect of €140m. All comments below are based on like-for-like figures.

• In France, a significant growth (+5.5%) thanks to a solid activity in General Literature, with successful best-sellers (Fifty Shades…), in addition to Illustrated Books, especially Asterix and coloring books.

• In the US, activity was stable (-0,3%): the increase of printed books sales has offset the decline of e-books sales.

• The decrease in the UK (-3.3%) is due to the contraction of e-books sales, in a market affected by the VAT hike. Also, good performances in Education and Illustrated Books did partially offset a slower release schedule than 2014 in non-fiction.

• Activity is up in Spain/Latin America (+7.5%, thanks to Education and Asterix), and in Partworks (+3%).


9 March 2016

2.0%

6.0%

8.0%

10.4% 10.3% 9,0%

2010 2011 2012 2013 2014 2015

1%

10%

20%

27% 31%

26%

2010 2011 2012 2013 2014 2015

8%

21% 24%

30% 26%

22%

2010 2011 2012 2013 2014 2015

Lagardère

Publishing:

focus on e-book

11

*Trade. / **Adult trade.

As expected, the weight of e-books has decreased: e-books accounted for 9% of total sales of the division in 2015 vs. 10.3% in 2014.

Digital for the time being remains essentially limited to the traditional fiction/non-fiction segment, and only in the US and in the UK, where in 2015 market trends have been reversed, with a rebound in volumes of printed books to the detriment of e-books:

• in the US, Lagardère Publishing digital sales accounted for 22% of Trade sales in 2015. It reflects market trend and the impact of the agreement with e-retailers;

• in the UK, e-book sales decreased due to a less intensive new release schedule and to a change in VAT rate. E-books accounted for 26% of Adult trade sales;

• French and Spanish markets still at an early stage.

% of total sales

E-book share – as percentage of trade sales

United Kingdom**

Lagardère Publishing e-book sales

9.0%

United States*

22%

26%


9 March 2016

Lagardère

Publishing:

profitability

12

(€m) 2014 2015 Change

Sales (a) 2,004 2,206 +10.1%

Recurring EBIT of fully consolidated companies (b) 197 198 +€1m

Operating margin (b)/(a) 9.8% 9.0% -0.8 pt

Income (loss) from equity-accounted companies 2 1 -€1m

Non-recurring/non-operating items (30) (16) +€14m

EBIT 169 183 +€14m

2015 Recurring EBIT

• Profitability trend is mainly attributable to the decrease of e-book sales in the US and in the UK, linked to the implementation of the new contractual terms with e-retailers, and in the UK to the VAT hike (from 3% to 20%).

• Profit is up in France, thanks to activity growth, and in Partworks.

A lower amount of non-recurring and non-operating items, mostly due to reduced restructuring charges.


9 March 2016

13

Lagardère

Travel Retail:

activity

France 23%

Belgium 12%

Eastern Europe

17%

Spain 10%

Asia- Pacific

10%

Italy 8%


26%*

9%*

6%*

17%*

12%*

8%*

16%*

6%*


37%*

63%*

Distribution (Wholesale Distribution

& Integrated Retail) 27%

Travel Retail 73%


2015 sales: €3,510m (-8.0% reported and +4.3% like-for-like).

• The market environment in 2015 was marked by the brisk pace of growth in air traffic, the continued downturn in the press market, and an unsettled geopolitical and macroeconomic situation.

• The repositioning and development strategy of Lagardère Travel Retail is well on track, with the advanced disposal process of the Distribution activities, the accelerated organic growth in Travel Retail and the completion of acquisitions in a growing North American market (primarily Paradies).

• A negative perimeter of -€498m, and a positive currency effect of €57m. All comments below are based on like-for-like figures.

• Strong momentum in Travel Retail, with a sustained growth of +8.2% despite the impact of Paris attacks in Q4. See details next page.

• Distribution is down -4.2%, with continued downturn of the press market, the suspension of export operations in Hungary, not fully compensated by the successful diversification initiatives.

Other Western Europe

11%

US & Canada 9%


9 March 2016

14

Worldwide North America Europe Asia-Pacific

+6.0% +8.0%

+5.0% +5.2%

+4.9%** +5.4%**

+3.2%** +5.2%**

The growth strategy of Lagardère Travel Retail is bearing fruits. All comments below are based on like-for-like figures.

• A strong growth of Travel Retail activities (+8.2%) on all markets, driven by passenger traffic, proper consolidation of acquisitions, network development and successful commercial initiatives.

- In France, a sharp growth (+5.8%) driven by the Travel Essentials and Foodservice segments (network development), as well as Duty Free (buoyant traffic and concept development). However, the end of the year was marked by the negative effect of the attacks in Paris.

- In the rest of Europe, activity is strongly up (+9.9%), especially in Poland (+17%, due to the gain of new concessions), Italy (+7.9%) with a good performance in particular in Rome, Iceland (new concession), Romania (+18.7%) and Spain (+8.1%).

- The robust activity in North America (+5.5%) is driven by network increase and sustained traffic.

- Asia-Pacific is also up (+10.4%) with strong sales in the Pacific area (opening of new duty free stores in New Zealand) and in Asia (China, Singapore and Hong Kong).

• Development activity was successful with numerous gains of tenders and successful key renewals, such as: UK (London - Luton), France (Nice), Luxemburg, Poland (Krakow), Abu Dhabi, New Zealand (Auckland), China (Kunming), Singapore, Hong Kong, Canada (Toronto and Vancouver)…

Improving passenger traffic trends*:

*At the end of October 2015, year-on-year increase. Source: ACI. / **Full-Year 2014.

Lagardère

Travel Retail:

focus on Travel

Retail


9 March 2016

15

Lagardère

Travel Retail:

profitability

(€m) 2014 2015 Change

Sales (a) 3,814 3,510 -8.0%

Recurring EBIT of fully consolidated companies (b) 105 102 -€3m

Operating margin (b)/(a) 2.7% 2.9% +0.2 pt

Income (loss) from equity-accounted companies 6 10 +€4m

Non-recurring/non-operating items (64) (74) -€10m

EBIT 47 38 -€9m

2015 Recurring EBIT

• Excluding the disposal of the Swiss and US Distribution activities (-€15m) and the Paradies integration (+€4m), performance improved in both Travel Retail and Distribution.

• Increase in Travel Retail of +€8m: rise in margin through both an improved product mix and better purchasing conditions, growth of Duty Free in Italy, successful development of new concepts, network expansion and successful new commercial initiatives.

• Negative impact (-€3m) of the consolidation of Airest (weaker profitability in the 1st quarter).

• Increase in Distribution: +€3m, thanks to cost cutting measures and diversification initiatives.

Non-recurring and non-operating items comprise mainly amortisation of intangible assets (due to recent acquisitions), restructuring costs and impairment losses (in Distribution), which are partly compensated by the net capital gains on the Distribution assets sold in 2015.


9 March 2016

2015 sales: €962m (+0.5% reported and -5.8% like-for-like).

• Lagardère Active has implemented its strategy of rebalancing its portfolio of activities toward broadcasting, primarily thanks to the acquisition of Gulli in November 2014 and Grupo Boomerang TV in May 2015.

• A positive perimeter of +€59m and a negative currency effect of -€1m. All comments below are based on like-for-like figures.

• In all, advertising was down by -1.6%, thanks to an improved end of the year.

• Magazine activities are down by -3.9%, with a drop in advertising (-4.9 %) and in circulation (-5.3%), partly offset by the strong development of digital activities (+25.1%).

• Radio demonstrated its defensiveness (-1.4%) with activity up internationally.

• TV activities (theme channels and TV Production) are down (-8.9%) mostly due to an unfavourable comparison effect for TV Production with fewer deliveries of international productions.

• The drop in Pure Digital sales (-19.5%) is mostly due to the dip in LeGuide.com sales. Excluding the latter, Pure Digital activities have increased by +4.9% thanks to new sources of revenues.

Press 41%

TV 32%

Radio 21%

Lagardère

Active:

activity

16


22%*

26%*

45%*

7%*


Pure Digital 6%

France 81%


Spain 6%

14%*

86%*

0%*

Other international 13%


9 March 2016

Lagardère

Active:

profitability

17

(€m) 2014 2015 Change

Sales (a) 958 962 +0.5%


Operating margin (b)/(a) 7.6% 8.2% +0.6 pt

Income (loss) from equity-accounted companies 4 2 -€2m


EBIT 56 18 -€38m

2015 Recurring EBIT

• Profitability is increasing, despite negative trends in press (advertising and circulation) and LeGuide.com difficulties, thanks to:

- the strong results in TV Production: successful integration of Grupo Boomerang TV and good performance in program distribution;

- the implementation of the costs saving plan that enabled to improve press magazine profitability and consolidate performance of our TV and radios activities.

Non-recurring and non-operating items comprise mainly impairment losses on LeGuide.com (-€25m) and Version Femina (-€17m), as well as restructuring costs.


9 March 2016

2015 sales: €515m (+30.9% reported and +19.6% like-for-like).

• A positive perimeter of +€17m, and a positive currency effect of +€27m. All comments below are based on like-for-like figures.

• The sharp increase in activity was attributable to the favourable calendar effect in football, as expected, mainly because of continental competitions held in Africa (Orange Africa Cup of Nations held in Equatorial Guinea) and Asia (AFC** Asian Cup held in Australia), as well as the good start of stadium management operations.

• Moreover, the good performance of marketing operations in Europe as well as services (ticketing, marketing rights and media) for the organisation of the 2015 African Games in Brazzaville boosted growth.

18


Media rights 26%

Marketing rights 42%

Other 32%

33%*

48%*

19%*

*% of sales in 2014. / **Asian Football Confederation.

Lagardère

Sports and

Entertainment:

activity


Germany 22%

UK 9%

France 13%

Asia & Australia

17%

Africa & Middle East

16%

9%*

20%*

9%*

7%*

14%*

27%*

Rest of Europe 14%

14%*

US & Latin America

9%


9 March 2016

19

(€m) 2014 2015 Change

Sales (a) 394 515 +30.9%


Operating margin (b)/(a) 1.0% 3.9% +2.9 pts

Income (loss) from equity-accounted companies (3) (2) +€1m


EBIT (18) (44) -€26m

Lagardère

Sports and

Entertainment:

profitability 2015 Recurring EBIT

• The recovery is well on track, thanks to two factors:

- strong positive seasonality impact due to the very positive calendar of continental soccer competitions;

- underlying profit improving.

Non-recurring and non-operating items comprise mainly restructuring costs and the reimbursement of past proceeds (decision of an Arbitration Court related to the commercial dispute linked to an Indian cricket competition in 2009) for €27m.

Group financial results


9 March 2016

Consolidated

income

statement

(1/2)

21

(€m) 2014* 2015

Sales 7,170 7,193

Total recurring EBIT of fully consolidated companies** 342 378

Operating activities 379 399

Other activities (37) (21)

Income (loss) from equity-accounted companies*** 9 11

Non-recurring/non-operating items (142) (215)

Restructuring costs (66) (77)

Gains (losses) on disposals (5) 20

Fair value adjustment resulting from changes in control 25 -

Impairment losses (41) (62)

Amortisation of acquisition-related intangible assets and other acquisition-related expenses

(55) (69)

Cricket litigation in India (WSG) - (27)

EBIT 209 174

*The retrospective application of IFRIC 21 “Levies” has no significant impact on 2014 P&L figures: The new interpretation IFRIC 21 modifies the obligating event that gives rise to the recognition of a liability to pay a levy or contribution. The obligating event for the recognition of the liability is now the activity that triggers the payment of the levy, as defined by the tax authorities.

**See definition slide 40. / ***Before impairment losses.


9 March 2016

Consolidated

income

statement

(2/2)

22

(€m) 2014 2015

EBIT 209 174

Net interest expense (73) (66)

Profit before tax 136 108

Income tax expense (87) (37)

Total profit 49 71

Attributable to minority interests (8) 3

Profit – Group share 41 74


9 March 2016

Adjusted profit –

Group share

23

(€m) 2014 2015

Profit – Group share 41 74

Restructuring costs* +53 +56

Gains (losses) on disposals* +5 -24

Fair value adjustment resulting from changes in control* -25 -

Impairment losses on goodwill, tangible and intangible

fixed assets* +41 +62

Amortisation of acquisition-related intangible assets

and other acquisition-related expenses* +42 +48

Cricket litigation in India (WSG)* - +19

Tax contribution on dividends paid to shareholders +28 +5

Adjusted profit - Group share 185 240

*Net of taxes.


9 March 2016

Consolidated

statement of

cash flows

24

(€m) 2014 2015

Cash flow from operations before interest, taxes 403 447

Changes in working capital (49) 180

Cash flow from operations 354 627

Interest paid & received, income taxes paid (144) (103)

Cash generated by/(used in) operating activities 210 524

Acquisition/Disposal of property, plant & equipment and intangible assets (233) (250)

Free cash flow (23) 274

Acquisition of financial assets (282) (568)

Disposal of financial assets 34 (59)

Net cash from operating & investing activities (271) (353)


9 March 2016

Consolidated

balance sheet

25

(€m) 31 Dec. 2014

restated* 31 Dec.

2015

Non-current assets (excl. investments in associates and

joint ventures) 3,948 4,672

Investments in associates and joint ventures 159 155

Current assets (other than short-term investments and cash) 2,834 2,846

Short-term investments and cash 566 634

TOTAL ASSETS 7,507 8,307

Stockholders’ equity 2,084 2,135

Non-current liabilities (excl. debt) 714 800

Non-current debt 1,030 1,526

Current liabilities (excl. debt) 3,189 3,187

Current debt 490 659

TOTAL LIABILITIES AND EQUITY 7,507 8,307

*Includes impact of IFRIC 21: -€1m on non-current assets, -€4m on current liabilities and +€3m on stockholders’ equity.


9 March 2016

Change in net

debt in 2015

26

(€954m) -€627m -€186m -€58m (€1,551m)

Net debt

as of

31/12/2014

Acquisition /

disposal of

financial

assets

Dividends

paid

Foreign

exchange,

scope and

other items

Net debt

as of

31/12/2015

Free cash

flow

+€274m


9 March 2016

€634m

€995m

€502m

€3m €18m €8m

€1,250m

€659m

Cashavailable

2016 2017 2018 2019 2020 2021 &beyond

46%

22%

14%

18%

Gross debt breakdown: well-balanced funding sources

Bonds

Bridge Loan

Bank loans & other

Commercial paperSound financial

position

27

*Short-term investments and cash. **Group credit facility excluding authorised credit lines at divisions level.

*See definition slide 40. **On a proforma basis (as per credit facility covenant), including

12 months of Paradies recurring EBITDA. On a reported basis, ratio is 2.6x.

2.1x 1.8x

31/12/2014 31/12/2015

€954m

€1,551m Authorised

credit lines**:

Cash*:

Preservation of liquidity and balanced debt repayment schedule

2015 • Revolving Credit Facility refinanced in May 2015 for

€1.25bn, 5 years + up to 2 years extension options.

• Strong liquidity, with €1,884m covering up to end of 2018.

• Gross debt centered on bond market & commercial paper.

• Paradies funded through €487m usd bridge loan available until October 2017.

2.4x**

1.8x

Leverage ratio Net debt/Recurring EBITDA*

Appendices to consolidated

accounts


9 March 2016

France 32%

Western Europe

34%

Other 3%

Asia- Pacific

8%

Eastern Europe

10%

US & Canada

13%

Group profile

2015

29

Sales by division Recurring EBIT of fully consolidated companies by division

Sales by geographic area 2014 Sales by geographic area 2015

Emerging countries: 21%


31%

Lagardère Active 13%

Lagardère Travel Retail 49%


49%

Lagardère Active 20%

Lagardère Travel Retail 26%

Emerging countries: 21%

France 35%

Western Europe

34%

Other 2%

Asia- Pacific

7%

Eastern Europe

12%

US & Canada

10%

Lagardère Sports and Entertainment 5%

Lagardère Sports and Entertainment 7%


9 March 2016

Recap of

performance

by division

30

Sales

(€m)

2015

sales

Reported

€m change

Reported

change Like-for-like change*

Lagardère Publishing 2,206 +€202m +10.1% +1.7%

Lagardère Travel Retail 3,510 -€304m -8.0% +4.3%

Lagardère Active 962 +€4m +0.5% -5.8%

Lagardère Sports and Entertainment 515 +€121m +30.9% +19.6%

Total 7,193 +€23m +0.3% +3.0%

Recurring EBIT of fully consolidated companies

(€m)

2015

EBIT

Reported

€m change

Reported

change

Change at constant

exchange rates**

Lagardère Publishing 198 +€1m +0.5% -4.0%

Lagardère Travel Retail 102 -€3m -2.9% +6.3%

Lagardère Active 79 +€6m +8.2% +2.1%

Lagardère Sports and Entertainment 20 +€16m NM NM

Total operating activities 399 +€20m +5.3% +3.7%

Other activities (21) +€16m NM NM

Total 378 +€36m +10.5% +8.8%

**And, for Lagardère Travel Retail, including LSD Suisse & Curtis adjustment, disposed of in 2015 and Paradies acquisition (2 months); for Lagardère Active, including Grupo Boomerang TV acquisition (7 months) see slide 6.

*At constant perimeter and exchange rates.


9 March 2016

Analysis of non-

recurring/non-

operating items

in 2015

31

(€m)


Lagardère Travel Retail

Lagardère Active

Lagardère Sports and

Entertainment

Total operating activities

Other activities

Total Lagardère

Restructuring costs (8) (19) (20) (30) (77) / (77)

Gains (losses) on

disposals (1) 17 3 1 20 / 20

Impairment losses (2) (16) (44) / (62) / (62)

Amortisation of

acquisition-related

intangible assets

and acquisition-

related expenses

(5) (56) (2) (6) (69) / (69)

Cricket litigation in

India (WSG) / / / (27) (27) / (27)

TOTAL (16) (74) (63) (62) (215) / (215)


9 March 2016

Main associates

and

joint ventures

32

Balance sheet Income statement*

(€m) 2014 2015 2014 2015

Marie Claire (42%) 90 90 4 -

Édition J’ai Lu (35%) 17 17 1 0

Société de Distribution Aéroportuaire (45%)

15 16 6 7

Société d’Édition de Télévision par

Câble (49%) 10 8 - -

Inmedio Poland (49%) 9 11 - 2

Société des Commerces en Gares (50%) 4 3 (1) (1)

Gulli (66%) - - (1) -

Other associates 14 10 (2) 1

TOTAL 159 155 7 9

*Including impairment losses: €2m in 2015 (other associates), €2m in 2014 (other associates).


9 March 2016

Cash flow

statement data

Lagardère

Publishing

33

(€m) 2014 2015







Free cash flow 21 125


Disposal of financial assets 1 2

Net cash from operating & investing activities (30) 118


9 March 2016

34

Cash flow

statement data

Lagardère

Travel Retail

(€m) 2014 2015







Free cash flow (7) 54


Disposal of financial assets 33 (95)



9 March 2016

Cash flow

statement data

Lagardère

Active

35

(€m) 2014 2015







Free cash flow 1 117


Disposal of financial assets (19) 3

Net cash from operating & investing activities (48) 70


9 March 2016

36

Cash flow

statement data

Lagardère

Sports and

Entertainment

(€m) 2014 2015


Changes in working capital 32 28





Free cash flow 3 (27)


Disposal of financial assets - 31



9 March 2016

Off balance

sheet

commitments

37

(€m) 2014 2015

Commitments to purchase shares from third parties (other than minority interests)

- 1

Commitments given in connection with ordinary activities:

- contract guarantees and performance bonds 207 288

- guarantees in favour of third parties or non-consolidated companies

14 115

- other commitments given 16 21

Commitments received:

- counter-guarantees of commitments given 14 7

- other commitments received 22 20

Mortgages and pledges 1 1


9 March 2016

Lagardère Sports and

Entertainment –

Guaranteed minimum payments

38

At 31 December 2015 entities forming part of Lagardère Sports and Entertainment had guaranteed minimum future payments amounting to €1,456m under long-term contracts for the sale of TV and marketing rights. These payments break down as follows by maturity:

Maturity

(€m) 2016 2017 2018 2019 2020

2021

& beyond Total 2014

Guaranteed

minimum payments

under sports rights

marketing contracts

183 165 154 141 156 657 1,456 559

At 31 December 2015 the amounts due under marketing contracts signed by these same entities with broadcasters and partners amounted to €1,679m, breaking down as follows by maturity:

Maturity

(€m) 2016 2017 2018 2019 2020

2021

& beyond Total 2014

Sports rights

marketing contracts

signed with

broadcasters and

partners

547 345 244 180 109 254 1,679 1,167


9 March 2016

Recurring

EBITDA

39

(€m) 2014 2015

Total recurring EBIT of fully consolidated companies* 342 378

Depreciation & amortisation of intangible assets and property,

plant and equipment +174 +207

Dividends received from equity-accounted companies +17 +13

Total recurring EBITDA 533 598

*See definition slide 40.


9 March 2016

For the records: definitions of

Recurring EBIT of fully

consolidated companies, Like-for-like

sales and Free cash flow

40

Recurring EBIT of fully consolidated companies is defined as the difference

between profit before finance costs and tax and the following items of the profit

and loss statement:

• income (loss) from equity-accounted companies;

• gains (losses) on disposals of assets;

• impairment losses on goodwill, property, plant and equipment and intangible assets;

• restructuring costs;

• items related to business combinations:

- expenses on acquisitions;

- gains and losses resulting from acquisition price adjustments and fair value adjustment resulting from changes in control;

- amortisation of acquisition-related intangible assets.

Like-for-like sales were calculated by adjusting:

• 2015 sales to exclude companies consolidated for the first time during the year, and 2014 sales to exclude companies divested in 2015;

• 2015 and 2014 sales based on 2014 exchange rates.

Free cash flow is defined as: net cash generated by operating and investing activities,

excluding acquisitions/disposals of financial assets and short-term investments.

Significant events


9 March 2016

Sales up 1.7% (like for like), thanks to a strong 2nd half:

• strong sales in Trade in France;

• curriculum reforms in UK and Spain;

• positive impact of acquisitions in UK.

Background

and overall

performance

42


9 March 2016

Book market up by 2%.

Outstanding year in Fiction and Illustrated Books:

• Hachette Livre garnered five of France’s six top literary awards in fiction;

• cook books and art therapy highly successful;

• Asterix album a huge bestseller;

• yet another record year for Partworks.

Education still soft but massive curriculum reform planned in 2016-2017.

France

43


9 March 2016

UK successful in Education, Illustrated Books, integration of acquisitions, and

buoyed by strong fall list in Fiction.

Spain above expectations, thanks to an effective response to local curriculum

reforms.

US sales flat and operating income disappointing, due to lower e-book sales

vs. 2014.

International

markets

44


9 March 2016

E-book sales down 15% in the US, due to market slowdown and new e-retailers

contract, as expected.

E-book sales down in the UK in both volume and value, due to absorption of

massive VAT increase and new e-retailers contract.

All other markets growing very slowly.

Digital

45

Significant events


9 March 2016

Lagardère Services changed its name to Lagardère Travel Retail on 8 July 2015. The sale of the Distribution division is progressing well.

The growth (+6.0%*) in passenger traffic remains strong in all regions with Europe at +5.2%, North America at +5.0% and Asia-Pacific at +8.0%.

At constant rate and perimeter, the favourable traffic evolution combined with a dynamic management of the network, generated a sustained growth of Travel Retail sales (+8.2%) despite an unsettled geopolitical and macroeconomic situation.

Total like-for-like sales increased by +4.3%, the strong performance of Travel Retail being partly absorbed by the decline of Distribution (-4.2%).

Total sales on a reported basis reached €3,510m (-8.0% vs. December 2014) with a favourable exchange rate +1.5 pt (rise of the US dollar, Swiss franc and GBP) and, as expected, a negative effect of the scope impacts (-€498m or -13.0 pts):

• deconsolidation impact (-€325m): deconsolidation of Relay activities in train stations in France

(creation of a joint venture with SNCF in September 2014), as well as of high-street Retail activities

in Poland (consolidated using the equity method after disposal of 51% of Inmedio's shares in

December 2014);

• the disposal of the Distribution activities in Switzerland (Naville in February 2015, with an impact

of -€266 million, and Payot in July 2014 with an impact of -€28 million) and Curtis at the end of

May 2015, with an impact of -€10 million;

• acquisitions for €146 million, essentially Paradies in November 2015 and Airest Group's activities

in April 2014.

Background

(1/2)

47 *Source: ACI data / Europe: +5.2% stable, Asia-Pacific: +8.0% vs. +5.4%, and North America: +5.0 % vs. +3.2% (at 30 Oct. 2015 vs. 31 Dec. 2014).


9 March 2016

Main perimeter evolution since the beginning of the year (Travel Retail):

• Acquisition of Paradies on 22 October 2015 (more than 550 shops among 75 airports in North America). Combining the legacy activities of Lagardère Travel Retail in North America and Paradies creates the third largest player in Travel Retail in North America, a large and sustainable market. Sales of the newly-combined company would be over USD 800 million.

• Acquisition of 17 fashion and confectionery stores at JFK airport (New York – USA) on 21 April 2015 ($25m turnover projected for the first full year).

Distribution divestment process is on-going:

• disposal of the Swiss activities completed on 27 February 2015;

• disposal of Curtis Circulation Company on 26 June 2015;

• disposal of the Spain activities completed on 25 February 2016;

• signing for the disposal of the Belgian activities on 5 February 2016; the closing will be completed in 2016 following the Competition Authorities approval;

• the process to sell the remaining Distribution businesses (Hungary and Canada) is on track.

In a complex geopolitical and macroeconomic environment, Travel Retail growth remained strong and 2015 was marked by:

• the good performances of the new activities;

• the gains or renewals of major contracts, such as: Warsaw T1 (Retail and Foodservice) opened at the end of May 2015, Auckland (New Zealand) duty free concession taken over on 26 June 2015, Krakow (Poland) duty free concession opened at the end of September 2015, Luton (renewal of the duty free concession),Toronto Pearson (renewal of the travel essentials concession), Kunming (China) master concession opened in August 2015;

• new and more aggressive marketing and commercial initiatives as well as the development of the concepts portfolio and the roll-out of the new Relay and Aelia concepts.

48

Background

(2/2)


9 March 2016

2014 Investor Day guidance achieved, one year in advance

49

2014

Investor Day

guidance

Proportional

EBITDA margin2/3

Proportional

sales2

2013

4.9%

2,598

+1.0 pt

vs. 2013

+5% to +10%

per annum

Guidance announced in

May 2014

(From 2013 to 2016)

+1.2 pt

vs. 2013

+8.2% vs. 2014 +9% 2014 vs. 2013

2015

1Lagardère Travel Retail pro-forma perimeter i.e. including Retail in Spain and Duty Free in Switzerland. 2Proportional view includes Lagardère Travel Retail share in JVs (Relay@ADP, SDA…). 3Before HQ central costs.

Lagardère Travel Retail1 guidance - €m


9 March 2016

Duty Free & Fashion

• 100% managed sales up by +7.6% attributable to:

- an increase of +8.3% at Paris airports fueled by the strong improvement of the Fashion

activities (+18.4%), the growth of the electronics & travel accessories network (+14.7%) and

favorable trends on the core duty free segment (+5.5%), positively impacted by the increased

spending of Chinese passengers, successful commercial initiatives, favorable exchange rate

impacts and a positive traffic trend (+3%);

- sales in regional airports outside Paris are showing an increase of +3.8% driven by the dynamic

growth at Beauvais, Bordeaux and Lyon airports. Performance is however negatively impacted

by the decrease in Russian and Maghreb passengers along with some works effects in Nice.

Travel Essentials and Foodservice

• 100% managed sales increase by +3.7%:

- limited print sales decrease (-2.6%): higher press sales in January/February following Charlie

Hebdo terrorist attack and growth in book sales following dynamic book releases (ie: Asterix);

- successful commercial initiatives, concept modernization and development of the network:

renovation of La Tour Eiffel stores; modernization of the SNCF stores following the gain of the

tender in 2013;

- strong performance of the Foodservice activities: +14.3% following the openings of

Marks & Spencer Chatelet, Nice airport and numerous hospitals (Générale de Santé…).

The 13 November terror attacks has negatively impacted sales across all

businesses (est. -0.5 pt on 2015 total sales).

Travel Retail

in France

50


9 March 2016

Italy

• Rome airports continue to grow strongly despite the fire that occurs at Fiumicino airport.

- A major fire occurred on 7 May at Fiumicino airport, destroying part of the commercial spaces

of the Terminal 3 (closing of 2 stores). Insurances have compensated the losses.

- Despite this event, sales increased by +12.9% following the transfers of the passengers to

the remaining stores and the success of the commercial and training initiatives. Traffic grew

at +5.0%.

• Rest of Italy (Airest)

- Acquisition of Airest Group on 16 April 2014.

- On a comparable basis, sales increased by +2.6%. As expected, Foodservice operations were

flat following the closing of few locations, but Duty Free with +11.6% and Travel Essentials with

+5.6% more than compensated this impact.

• At the end of 2015, Italian network comprises 116 stores.

Netherlands

• Despite the closing of the largest store in Lounge 2 (planned to re-open on Q1 2016) due to major

renovations at Schiphol airport, sales are up by +2.2%.

United Kingdom

• Growth of +8.5% attributable to both the opening of 6 fashion stores in Birmingham in Q3 2014

and the performance of the Luton platform (which has been successfully renewed in Q1 2015).

20 stores at the end of December 2015 vs. 21 stores in December 2014, after the closing of the

last two travel essentials stores in July and the opening of a fashion store in Glasgow.

Travel Retail

in Europe

(1/3)

51


9 March 2016

Spain and Portugal

• Sales increase by +8.1% mainly due to the Duty Free activities which have strongly increased

vs. 2014 with the opening of 8 fashion stores in Madrid, Barcelona, Malaga and Valencia.

The network comprises 157 stores (down 7 vs. December 2014).

Germany

• Sales increase by +2.6 %: Travel Essentials +1.9 %; Foodservice +13.8% thanks to the

development of the Frankfurt train station food court (+6.8%) and of the Coffee Fellows network

(impact of +7.0 pts).

• The network consists of 124 sales outlets at end of 2015 (32 in Foodservice).

Austria and Slovenia (acquisition of Airest Group on 16 April 2014)

• Growth of +6.9% for Austria (only Foodservice business) with good performance at Vienna airport.

• The network consists of 36 sales outlets at end of 2015.

Poland

• Poland’s total sales is growing by +17.0% (excluding the impact of Inmedio activities

deconsolidation on December 2014), with +13% from both Duty Free activities and Travel

Essentials and +4% from Foodservice. This positive trend is mainly explained by the strong

traffic trend (Warsaw: +7.5%), the opening of Terminal 1 stores at Warsaw airport in May 2015

and the take-over of the duty free concession at Krakow airport at the end of September 2015.

• Total managed network is +68 stores (811 sales outlets, including 451 Inmedio stores).

52

Travel Retail

in Europe

(2/3)


9 March 2016

Czech Republic

• Sales increased by +3.8% in 2015, mainly due to the continuing development of the network,

leading to a increase in Foodservice of +11.2% along with dynamic Travel Essentials performance

(+5.3%). Duty Free showed a -2.8% decrease as sales were impacted by the Russian passengers

decrease in volume and spending due to the rubble devaluation and political crisis.

Romania and Bulgaria

• Romania: sales up by +18.7% with a network of 229 sales outlets (+15 additional stores in 2015).

• Bulgaria: business grew by +15.8% thanks to the opening of 7 new stores in 2014/2015 and

the good performance of the Food & Beverage and Tobacco categories.

53

Travel Retail

in Europe

(3/3)


9 March 2016

Retail activities in Canada and in the United States show a strong +47.6% growth driven both by the like for like network and the network development (including Paradies acquisition).

• +1.2% sales increase from the comparable network: +8% in Food & Beverage, +5% in Souvenirs

and Travel Accessories compensating the -6% decline for Press.

• Revenues from non-comparable network have an impact of +46.4 pts on total sales with the

following perimeter effects:

- Paradies acquisition on 22 October 2015 (550 stores): +40.1 pts;

- JFK T4 acquisition in April 2015 (14 stores opened at the end of June): +4.6 pts;

- Airest integration from April 2014 (9 stores): +0.9 pt;

- disposal of urban retail stores in Canada (29 stores disposed at the end of June 2014): -3.3 pts;

- other network effect (mainly Dallas and LAX Food & Beverage new stores): +4.1 pts.

Travel Retail

in North America

54


9 March 2016

Pacific

• In 2015 sales grew by +11.1% with the on-going rationalization of the news & book network being

more than compensated by the developments of the Duty Free & Fashion activities (Auckland Duty

Free concession opened in late June, Victoria’s Secret, MAC and Amuse concepts in different

locations) as well as the Travel Essentials activities (Tech2go, Souvenirs and Convenience).

• Like-for-like sales are up +0.3% for Travel Essentials, driven by books and food categories in

Australia and the good performance in New Zealand that compensated the strong decline of press.

• The network comprises 160 sales outlets at end of December 2015 (+25 stores).

Asia

• Strong turnover growth (+9.0%), despite a rather challenging environment:

- slowdown of traffic growth in Singapore and Malaysia due to continuous adverse effects of

political events in Thailand and the 2 airplane crashes from Malaysia Airlines;

- lower average spend growth, due to the effect of the new Chinese regulations aiming at limiting

sumptuary spending and to the devaluation of the Indonesian rupiah.

• In this context, the turnover growth was essentially driven by the ramp-up of Fashion activities in

China (Shenzhen, Xi’an, Kunming) and the continuous development of Singapore sales (openings

of new fashion stores and new products/range development).

• Network: 151 stores in Asia at end of December 2015, which is an increase of +24 stores.

Travel Retail

in Asia-Pacific

55

Significant events


9 March 2016

Audiences One Global: the audience of our main weeklies on all devices (print, fixed-line

Internet, mobile and tabs) are all growing: Elle (+6.9%*); Paris Match (+5.0%*) and Télé 7 Jours

(+5.4%*).

Print Advertising

• In a particularly depressed print advertising market, Lagardère Active’s sales decrease has been

curbed to -4.9%.

• Elle, Elle à Table,Télé 7 Jours, and Version Femina remain leaders on their competitive segments.

Print Circulation

• In a declining market, the circulation revenue went down by -5.3%. The subscription revenue trend

partially offset the newsstand decline.

Digital

• Digital turnover on apps and websites has registered a double digit growth, driven by the

remarkable performances of Elle, Paris Match, Public and Télé 7 Jours.

Public and Télé 7 Jours’s applications are among the leaders on their segments.

Licensing

• The licensing activity has benefited from the launch by our licensees of Elle Kazakhstan

(February 2015), Elle Décoration in Lebanon and Middle East (March 2015) and 3 new websites

(Elle Mexico, Elle Indonesia and Elle Singapore).

Magazine

Publishing

57 *Evolution T4 2015 vs. T4 2014 (source One Global).


9 March 2016

Radio

58

Europe 1: number 2 news and entertainment private radio station in France, reaching daily over 4 million people.

• The latest radio audience measurement wave published by Médiamétrie* has confirmed the success of the new programmes: - 9.1% of cumulative audience, +0.4 point in a year (239 000 listeners); - 7.4% audience share on the 13 years old, +0.2 point in a year; - 5.9% audience share on the 25-59 years old commercial target, + 0.6 point in a year.

• The digital strategy of Europe 1 is to develop turnover on mobile, video and through social networks. On mobile, Europe1.fr is the first radio website.

RFM: number 2 private music radio station in France on the 35-59 years old’s, reaching 2,363,000 listeners and achieving 3.1% audience share.

• RFM’s success is due to the diversity of its music and the quality of its hosts.

Virgin Radio • The latest audience wave* has outlined the outstanding success of Virgin Radio, who achieved the highest

increase in cumulative audience compared to the other French musical radio stations. • Virgin Radio increased its average audience by 14%, thanks to its successful prime talk show. • It now reaches 2,623,000 listeners and a cumulative audience of 4.9%.

International radios • 2015 was, again, a year of strong growth in terms of advertising activity, driven by remarkable performances

in Poland, Romania and Germany. • Lagardère Active Radio International (LARI) remains a major player in all the countries where it operates:

- number one in the Czech Republic with Evropa 2 and Frekvence 1, the country’s second and third most popular stations respectively. LARI also strengthened its positions in the market by creating a joint venture for advertising brokerage operations with Media Bohemia Group, a media group editing national and regional radios;

- number two in Poland with Radio Zet, reaching daily more than 6 million listeners; - number one private radio station in audience share in the Romanian urban market, with Europa FM.

• LARI’s digital products reach each month around 6 million unique visitors and represent 30 million viewed pages in 2015.

• LARI’s development on the African continent continues: after the launch of Vibe Radio in Senegal in September 2014, broadcasting in Ivory Coast under the same trademark started in September 2015. *November-December 2015.


9 March 2016

Television

59

With Gulli, TiJi and Canal J, Lagardère Active remains the first TV offer for

children in France, with a 34% market share.

• Gulli remains the leader of kids channels in the French television market, ahead of TF1 and

France 4 (the state-owned kids channel).

• Lagardère Active kept its leadership over the kids advertising TV market with a 34% market share.

• Advertising sales of Gulli increased this year by 7.4%.

International developments

• Mezzo continues to expand internationally in Asia and has been launched in Canada.

• Gulli has been launched in Africa’s French speaking countries on the A+ platform (Group Canal+).

Digital

• TV Replay consumption continued to increase in 2015 and Gulli.fr is the leader website for children

in France.


9 March 2016

TV Production

and Distribution

60

First step of Lagardère Studios’ international development through the acquisition

of Grupo Boomerang TV, a leading independent TV producer in Spain.

Strong growth of distribution revenues in 2015 vs. 2014 confirming the

rebroadcasting value of scripted contents.

International development

• Acquisition as of 26 May 2015 of Grupo Boomerang TV, a major producer in Spain producing

scripted and non-scripted contents.

• Development in Africa through the acquisition of 75% of Keewu, a producer of scripted programmes

in Senegal and the creation of Diffa, a distribution company specialised in African contents.

• Development in Latin America through Grupo Boomerang TV which already owns a subsidiary in

Chile.

Lagardère Studios’ performance

• Revenues increased by 19% in 2015 vs. 2014, thanks to acquisitions.

• Distribution revenues (including distribution fees and catalogue revenues) increased by 47%

in 2015 vs. 2014 on a like-for-like basis.

• Lagardère Studios remains the no.1 producer of scripted contents and the no.2 producer of

non-scripted programs in France.

• In 2015, 8 programmes of Lagardère Studios were among the 100 best TV ratings in France

vs.4 in 2014.


9 March 2016

Digital Pure

Players

61

Lagardère Active is operating on the digital with websites and applications of its own offline brands (including Elle, Europe 1, Gulli, Public and Télé 7 Jours) as well as of its pure player brands (Doctissimo.fr, Boursier.com, LeGuide.com, BilletReduc.com).

Lagardère Active is one of the leading media group in audience, with more than 16 million unique visitors (UVs) in France on the fixed-line Internet, and 9 million of UVs on mobile.

Doctissimo.fr is the leading website on e-health and wellbeing with nearly 6 million of UVs. It has strengthened its position by creating a unique ecosystem within the e-health sector. Mon Docteur.fr, first French online booking website for medical consultations manages monthly more than 1 million appointments, operates in 250 French cities with more than 2,500 professionals (doctors, health centres, clinics). Doctipharma.fr, a service company allowing French pharmacies to create their own online dispensary continues its development.

BilletReduc.com, leader in France for online booking at cut prices, has continued its growth with more than 3 million tickets sold in 2015.

Newsweb, Boursier.com’s editor and first French editorial agency on financial information, has expanded its portfolio by developing a monetisation activity for third-party websites.

LeGuide

• Severely affected by Panda update in Q4 2014, the group continued to develop new sources of alternative traffic, especially through its publishers network.

• LeGuide closed its Ciao office in Munich in H1 2015 and continues its activities from Paris.

• Mid April, the European Commission sent a statement of objections to Google, expressing its preliminary view that Google should treat its own comparison shopping service in the same way as it does its competitors.

• LeGuide.com is launching a new product for its merchants, "price intelligence", which gives them a competitive intelligence tool on pricing by using LeGuide.com's extensive data technology.

*Source: Médiamétrie, NetRatings; connection from all places; January-December 2015.

Significant events


9 March 2016

63

Football Europe

• Acquisition of UFA Sports in Germany.

• Expansion in Sweden (signing of 3 clubs), Poland (Legia Gdańsk), and the Netherlands (Roda JC).

Football Asia

• Successful delivery the 2015 Asian Cup in Australia.

• Continued growth of the AFC Champions League.

Football Africa

• Successful delivery of the 2015 Orange Africa Cup of Nations in Equatorial Guinea.

• Renewal of partnership agreement with CAF* until 2028.

Golf

• Five-year agreement to operate the Safeway Open (PGA Tour event).

Olympics and Major Events

• Acquisition of specialised bid consultancy agency (EKS).

• Extension of Commonwealth Games representation agreement for 2018.

Business units

(1/2)

*CAF: Confédération Africaine de Football.


9 March 2016

64

Endurance

• Agreement to sell the activity in January 2016.

Consulting and Digital

• Expansion of our brand consulting and activation activities in Europe:

- acquisition of akzio! ajoint. in Germany;

- acquisition of Sponsorship 360 in France.

Live Entertainment

• Acquisition of the Bataclan in September 2015.

• Success of Florent Pagny’s tour and production and launching of “Enzo l’Insaisissable”.

Sports Club

• Lagardère Paris Racing (LPR): reopened fully mid 2015 after 2 years of works.

Corporate and other

• Launching of the new unified brands Lagardère Sports and Lagardère Live Entertainment.

• France appointed to manage the Euro 2016 fan zone in Paris.

• Successful delivery of the African Games in Congo-Brazzaville.

• Creation of a strategic partnership in China with Le Sports.

Business units

(2/2)

9 March 2016


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