Lagardre Travel Retail completes the acquisition of International Duty Free (IDF), Belgium s leading Travel Retail operator

Lagard re Travel Retail completes the acquisition of International Duty Free (IDF), Belgium s leading Travel Retail operator Lagard re Travel Retail today announced that it had completed the acquisition of International Duty Free, Belgium s leading Travel Retail operator also present in Luxembourg and Kenya.

Announced on 25 July, this acquisition cements Lagard re Travel Retail s position as the world s third-largest operator of Duty Free airport points of sale and as the European leader in Travel Retail, bringing its annual revenue to a total of 5.3 billion1. The acquisition also enables Lagard re Travel Retail to extend its presence to an additional leading European Hub, Brussels, with high-quality operations, while consolidating its positions in Luxembourg and in Africa with entry into Kenya. Lagard re Travel Retail will also be able to leverage IDF s experience in the fast growing Belgian premium chocolate segment to strengthen its operations in this market at the international level.

The close affinity between IDF and Lagard re Travel Retail in terms of culture and strategy will help to ensure a successful integration, led by Nicolas Van Brandt as CEO, while the companies combined operating and sales expertise will help boost sales and unlock recurring operating synergies.

IDF revenue for 2019 is expected to be between 185 million and 190 million. The company will be consolidated in Lagard re s financial statements with effect from 1 October 2019.

The acquisition has been valued at 250 million2, or around 8x IDF s pro forma EBITDA3 for 2020, factoring in 7 million in recurring synergies expected to be unlocked through to 2022. It is expected to deliver solid cash generation and be accretive to Lagard re Travel Retail s recurring EBIT, as well as extending the average life of the Group s concession agreements.

This value-creating transaction is an important step in Lagard re Travel Retail s global growth strategy, marking its entry into the Duty Free space in a further two countries, including Belgium, where it will benefit from a long-standing leadership position and long-term concessions in both of the country s main airports.

1Based on 100% of 2018 revenue, including the pro forma contribution of HBF on a full-year basis, which would translate into consolidated pro forma revenue of 4.1 billion.

2Enterprise value based on zero cash and debt.

3Pro forma EBITDA corresponds to estimated budgeted EBITDA for 2020 (first year of operation), plus recurring run-rate synergies of 7 million.

Press Contact Lagard re Travel Retail

Vanessa MIREMONT - Tel. 33 1 42 99 07 14 - v.miremont@lagardere-tr.com

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.

www.lagardere.com

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