Lagardre takes a decisive step in its strategic refocusing thanks to the disposal of Lagardre Sports to H.I.G. Capital and announces an Investor Day

Lagard re takes a decisive step in its strategic refocusing thanks to the disposal of Lagard re Sports to H.I.G. Capital and announces an Investor Day As part of its strategic refocusing on Lagard re Publishing and Lagard re Travel Retail, the Lagard re group has received an offer from H.I.G. Capital to acquire 75% of Lagard re Sports.

This planned disposal values Lagard re Sports at approximately 110 million(1), and the Lagard re Sports and Entertainment division as a whole at around 150 million(2). This valuation does not include the future value creation potential of the Group s residual 25% interest in Lagard re Sports, or any potential gains from the Confederation of African Football (CAF) agreement.

The Group anticipates recognising a write-down estimated at between 210 million and 240 million, notably deriving from the unilateral cancellation of the CAF agreement.

The planned disposal will be submitted to the relevant employee representative bodies and is subject to clearance from the competition authorities. The transaction is targeted to close before the end of the first quarter of 2020.

This disposal will enable Lagard re Sports to implement its strategic plan under the auspices of its new shareholder.

This disposal will see Lagard re take a decisive step in its strategy, by concentrating all efforts and resources on developing Lagard re Publishing and Lagard re Travel Retail.

In addition, the Group will be holding an Investor Day in early 2020, at the time of the publication of its 2019 annual results, to present the strategy, outlook and operating performance of the Lagard re Publishing and Lagard re Travel Retail businesses.

(1) The enterprise value breaks down as 55 million in net cash receivable subject to various time scales and conditions, and 55 million in liabilities (pension obligations and non-controlling interests). The estimated 55 million impact on net cash breaks down as: (i) 22.5 million receivable on the closing of the transaction; (ii) 63 million in the form of a vendor loan reimbursable in line with cash receipts from the Asian Football Confederation (AFC); (iii) 35 million in the form of a vendor loan reimbursable on 31 December 2025 (or earlier, in the event of a change of control); and (iv) (66) million in cash deconsolidated, as estimated for the expected closing date of the transaction.

(2) The Lagard re group will retain its entire interest in Lagard re Live Entertainment, valued in its financial statements at just over 40 million.

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

Florence Lonis - Tel. +33 1 40 69 18 02 - flonis@lagardere.fr

Until recently, the Lagard re group was structured into four business divisions: Lagard re Publishing, Lagard re Travel Retail, Lagard re Sports and Entertainment and Lagard re Active.

In 2018, the Group launched its strategic refocusing around two priority divisions: Lagard re Publishing and Lagard re Travel Retail.

Lagard re shares are listed on Euronext Paris.

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