Full-Year 2019 Results

Full-Year 2019 Results Revenue up 4.5% like for like(1) for the target scope and recurring EBIT(1) for the target

scope(2) up 5.6%(3) to 361 million

Sharp rise in free cash flow generation(1) for the target scope: up 20% to 250 million (excluding changes in working capital), and by 13% to 278 million including changes in working capital

Proposed ordinary dividend stable at 1.30 per share

2020 recurring EBIT growth target: between 4% and 6%(4), excluding the impact of the coronavirus

Action plan in progress at Lagard re Travel Retail to mitigate the impact of the coronavirus on 2020(5)

With the sale of Lagard re Sports and of numerous media assets, in 2019, the Lagard re group completed the bulk of its strategic refocusing plan.

In 2019, the Group continued to see strong growth in revenue and in recurring EBIT based on the target scope(2), driven by impressive momentum at Lagard re Publishing and Lagard re Travel Retail as the two divisions took full advantage of the opportunities resulting from their diverse geographic and business profiles.

Free cash flow for the target scope (excluding changes in working capital) totalled 250 million, a rise of 20% year on year led by strong margin growth in the Group s two businesses.

The Group also continued to develop its two pillars, with the acquisitions of Gigamic, Short Books and Blackrock Games at Lagard re Publishing, and of the International Duty Free group (IDF) at Lagard re Travel Retail. These acquisitions were mainly financed out of proceeds from the sale of media assets.

Continued growth momentum

The target scope reported revenue of 6,936 million in 2019, up 4.5% like for like. This growth momentum was powered by a solid performance at Lagard re Travel Retail, which delivered 6.3% growth, and by a good year at Lagard re Publishing, which advanced by 2.8%.

Continued rise in recurring EBIT

Recurring EBIT was 5.6% higher than in 2018, meeting the recurring EBIT target for the target scope as confirmed on 7 November 2019 ("Restated for the impact of IFRS 16 on concession agreements at Lagard re Travel Retail, at constant exchange rates and excluding Lagard re Travel Retail s acquisitions of Hojeij Branded Foods (HBF) and International Duty Free (IDF)").

Recurring EBIT for the target scope came in at 361 million versus 310 million in 2018, buoyed by good performances from Lagard re Travel Retail and Lagard re Publishing, and by the consolidation of HBF.

Profit before finance costs and tax was 411 million in 2019, compared with 451 million in 2018 which had included the one-off capital gain on the sale of the office building located in rue Fran ois 1er (Paris, France).

Profit for the period was 11 million, down from 199 million in 2018 owing to the adverse impact of discontinued operations. Restated for non-recurring/non-operating items, adjusted profit - Group share was 200 million, stable year on year.

Solid financial position

At end-December 2019, net debt stood at 1,461 million. The leverage ratio (net debt (1)/recurring EBITDA(1)) at both end-2019 and end-2018 was 2.1.

Consolidated data

At 31 December 2019, Lagard re Sports is classified within "Assets held for sale and associated liabilities" in the consolidated balance sheet. In accordance with IFRS 5, the contribution of Lagard re Sports is presented as a single amount on the face of the 2019 consolidated income statement and consolidated statement of cash flows, within "Profit (loss) from discontinued operations" and "Net cash from (used in) discontinued operations", respectively. Data for 2018 have been restated for the purposes of comparability.

1 Alternative performance measure, see definition at the end of the press release.

2 Lagard re Publishing, Lagard re Travel Retail, Lagard re News (Paris Match, Le Journal du Dimanche, Europe 1, Virgin Radio, RFM, the Elle brand licence), the Entertainment business, the Group Corporate function and the Lagard re Active Corporate function, whose costs are being wound down by 2020.

3 Restated for the impact of IFRS 16 on concession agreements at Lagard re Travel Retail, at constant exchange rates and excluding Lagard re Travel Retail s acquisition of HBF and IDF.

4 At constant exchange rates, excluding the impact of Lagard re Travel Retail s acquisition of IDF.

5 The adverse impact to date and action plans are described on page 10 in the "Outlook" section.

To read more:

Download the press release

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Press Contacts

Thierry Funck-Brentano Tel. +33 1 40 69 16 34 - tfb@lagardere.fr

Ramzi Khiroun Tel. +33 1 40 69 16 33 - rk@lagardere.fr

Investor Relations Contact

Emmanuel Rapin Tel. +33 1 40 69 17 45 - erapin@lagardere.fr

Created in 1992, Lagard re is an international group with operations in more than 40 countries worldwide. It employs over 30,000 people and generated revenue of 7,211 million in 2019.

In 2018, the Group launched its strategic refocusing around two priority divisions: Lagard re Publishing (Book and e-Publishing, Mobile and Board games) and Lagard re Travel Retail (Travel Essentials, Duty Free & Fashion, Foodservice).

The Group s operating assets also include Lagard re News and Lagard re Live Entertainment.

Lagard re shares are listed on Euronext Paris.

www.lagardere.com

Important Notice:

Some of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management s beliefs. These statements reflect such views and assumptions prevailing as of the date of the statements and involve known and unknown risks and uncertainties that could cause future results, performance or future events to differ materially from those expressed or implied in such statements.

Please refer to the most recent Universal Registration Document filed

LINK:	http://www.lagardere.com/index.php?coe_i_id=363&idpress=7806...
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