First-quarter 2017 revenue

First-quarter 2017 revenue Significant growth in revenue, up 6.2 like-for-like(1) at 1,532 million Confirmation of the Recurring EBIT growth target(2) for 2017

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The Lagard re group posted a sharp increase in like-for-like revenue, buoyed by robust business at Lagard re Publishing, continued momentum at Lagard re Travel Retail and a rebound in business at Lagard re Sports and Entertainment.

Revenue for the first quarter came in at 1,532 million, up 6.2% on a like-for-like basis and down 3.4% on a consolidated basis. The difference between like-for-like and consolidated figures reflects a positive 6 million foreign exchange effect and a negative 147 million scope impact, breaking down as:

the negative impact of disposals ( 168 million), primarily relating to the divestment of Distribution activities by Lagard re Travel Retail in Belgium, Hungary, Spain and Canada, and the sale of LeGuide.com by Lagard re Active;

the positive impact of acquisitions ( 21 million), carried out mainly by Lagard re Publishing in connection with the consolidation of Perseus in the United States.

By division (like-for-like basis):

- Lagard re Publishing: a solid first quarter driven by vigourous performances in the United Kingdom and United States, although this is not necessarily representative of full-year trends.

- Lagard re Travel Retail: continued growth momentum in Travel Retail (up 8.4% like-for-like).

- Lagard re Active: the first quarter was down slightly on the prior year, held back in particular by the contraction in Press and Radio advertising revenue. The first quarter is generally weaker and not necessarily representative of full-year performance.

- Lagard re Sports and Entertainment: a strong first quarter attributable primarily to the Total Africa Cup of Nations.

I. REVENUE BY DIVISION

Lagard re Publishing

Revenue for the division totalled 440 million, up 6.1% on a consolidated basis and up 3.3% like-for-like. The difference between consolidated and like-for-like figures is attributable to (i) a negative 7 million foreign exchange impact resulting mainly from the depreciation in the pound sterling, and (ii) a positive 18 million scope effect, due chiefly to the acquisition of Perseus in the United States in April 2016.

As in previous years, we emphasise that the first quarter traditionally makes a relatively low contribution to the year as a whole.

On a like-for-like basis, the main changes in each geographic area can be explained as follows:

In France, business remained stable (down 0.5%) at the beginning of the year in a sharply downbeat market and against the backdrop of the French presidential election. The success of new Livre de Poche paperback releases partly offset the decline in Illustrated Books.

The United States turned in a good performance, with 4.1% revenue growth driven by the Nashville unit and the success of titles such as William P. Young s The Shack and Trump s War by Michael Savage.

Business surged 8.1% in the United Kingdom, led by both significant restocking of J.K. Rowling titles and by the success of Bruno Vincent s Famous Five series. Business also benefited from a positive calendar effect over the period.

The Spain/Latin America region declined as expected (down 13.9%), due mainly to the fall in Education and to a one-off export transaction in 2016 in Latin America that did not recur in the first quarter of 2017.

Partworks climbed 6.1%, lifted by the success of new collections launched in Spain and continued good momentum in Japan, particularly with the success of Disney Tsum Tsum titles.

E-books accounted for 10.0% of Lagard re Publishing revenue in first-quarter 2017 (including Perseus), compared to 10.4% for the first three months of 2016.

Lagard re Travel Retail

Revenue for the division totalled 763 million, up 8.2% like-for-like (down 10.5% on a consolidated basis) owing to a positive foreign exchange impact of 13 million, primarily linked to the appreciation of the US, Australian, New Zealand and Canadian dollars and a negative 159 million scope impact due mainly to the disposal of Distribution operations in Belgium, Hungary, Spain and Canada.

The figures below are presented on a like-for-like basis.

The first quarter saw ongoing robust like-for-like revenue growth in Travel Retail (up 8.4%), powered by continued network expansion, the success of sales initiatives (including modernised points of sale), synergies relating to the consolidation of Paradies and the growth in air traffic. Travel Retail was also boosted by the sharp rise in revenue relating to Russian passengers. This performance was achieved despite an unfavourable basis for comparison (one less trading day in the quarter) owing to the fact that 2016 was a leap year.

In France, business continued to enjoy strong momentum (up 8.5%), led primarily by the Duty Free segment boosted by both a favourable basis for comparison and network expansion, despite the adverse impact of the introduction of plain packaging in the tobacco segment.

The EMEA region (excluding France) reported robust 11.5% revenue growth, buoyed by points of sale opened at Rome airport s new Avancorpo terminal in Italy (up 13.0%), modernised points of sale at Amsterdam s Schipol airport in the Netherlands (up 26.3%), the growth in traffic and network expansion in Poland (up 16.8%) and the takeover of Duty Free stores in the Czech Republic (up 16.5%).

The United Kingdom also delivered strong 22.9% growth, powered by the positive impact of the revamped Luton airport and the depreciation of the pound sterling in the wake of the Brexit vote.

North America reported further growth, up 7.4% owing mainly to the impact of sales synergies and new points of sale opened in Tampa and Phoenix.

Business was mixed in Asia-Pacific (up 1.2%): the A

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