GL events — Earnings Release 2015

Mar 8, 2016

2015 annual results: Strong growth in current operating income: +11% Rise in net income: +8%

Solid foundations and a favourable calendar for profitable growth in 2016

€m	2015	2014*	Change
Revenue	942.4	939.4	+0.3%
Current operating income	71.7	64.6	+11.0%
Current operating margin (%)	7.6%	6.9%
Operating profit	69.1	66.9	+3.4%
Pretax income	56.7	55.7	+2.3%
Income tax	(18.6)	(19.3)	-
Net income of consolidated companies	37.1	34.4	+8%
o/w Net income attributable to equity holders of the parent	30.8	29.6	+4%

*Restated (notably to reflect application of IFRIC 21)

In a turbulent macroeconomic and geopolitical environment, and despite an unfavourable currency effect, GL events' operating performance showed improving momentum in 2015.

Improved operating performance confirmed

By strengthening financial and operational controls over all activities, the Group has confirmed improvements in all key indicators:

• EBITDA rose by nearly €12 million to €116.7 million in 2015, up from €104.8 million one year earlier.
• Current operating income registered strong growth (+11%), with a 0.7 point improvement in the current operating margin to 7.61%. This result includes a reduction in the cost of supplies and consumables and external charges. The increase in staff costs reflects primarily a consolidation scope effect (Strasbourg Évènements and Jaulin Group - consolidated for 12 and 3 months respectively) and insourcing selected expertise for the execution of projects.
• Operating profit includes effects of trade-offs involving disposals of non-strategic assets, with the full impact to be reflected in future financial periods.
• Net income of consolidated companies came to €37.1 million, up 8% from 2014. After the deduction of minority interests relating primarily to Eurexpo and Première Vision, net income attributable to equity holders of the parent was €30.8 million, up 4%.

Operating margins by business unit

€m	2015	2014	2013
Revenue – Live	486.4	529.6	411.4
Operating profit	32.7	39.8	14.7
Operating margin	6.7%	7.5%	3.6%
Revenue – Exhibitions	166.4	143.2	161.5
Operating profit	20.1	8.4	18.0
Operating margin	12.1%	5.9%	11.1%
Revenue – Venues	289.6	266.6	236.3
Operating profit	19.0	16.5	17.1
Operating margin	6.6%	6.2%	7.2%

• GL events Live's operating margin achieved a good level for the full-year of 6.7%, despite the base effect from the 2014 Football World Cup.
• GL events Exhibitions had an operating margin of 12.1%, up from the benchmark year of 2013. This improvement was mainly driven by Sirha, Industrie Lyon, renewed successes by Première Vision (in France and international markets) and the Biennial International Book Fair of Rio de Janeiro.
• GL events Venues' margin came to 6.6%, also up from 2014, benefiting from synergies achieved across all Group sites as well as with Live and Exhibitions.

A year of substantial investments to support future growth

During this period, the Group made two strategic investments: the extension and renovation of the Sao Paulo Expo exhibition centre in Brazil and the acquisition of the company Jaulin in France.

When inaugurated in April of this year, Sao Paulo Expo will be equipped with an exhibition and convention area of 100,000 m² on par with international standards and a 4,500 car parking facility for visitors or exhibitors. These investments, initially planned in 2015-2017, were accelerated to address the needs of organisers.

Multi-year reservations exceeding initial forecasts confirm the relevance of this investment for a destination that was lacking quality exhibition infrastructures.

By acquiring Jaulin, GL events has strengthened its position in the event sector in the Ile de France region. With the Paris Event Center (a centrally located venue hosting corporate events), the Group has thus expanded its offering in the French capital, one of the leading event industry destinations in the world.

Reflecting these investments and the strong business activity at year-end adversely impacting working capital, net debt at 31 December 2015 amounted to €375 million. This amount will be gradually reabsorbed in 2016 and 2017 by cash generation from the entire invested asset base. The maturity of the debt will furthermore be adjusted accordingly to the long-term strategic assets.

Group ROCE (excluding the Rio Centro hotel and Sao Paulo Expo whose revenue streams are still limited and with operations to be ramped up over 2016-2017) has improved significantly from 6.6% in 2014 to 7.3% at the end of 2015.

Proposal for the payment of a stock dividend (€0.60 per share)

At the upcoming Annual General Meeting to be held on 29 April 2016, the Board of Directors will submit a proposal to distribute a dividend of €60 per share for 2015, representing a pay-out ratio of 43%.

The Board will furthermore propose that this dividend be paid in the form of shares, with the main shareholders having already indicated their intention to opt for this form of dividend payment. This payment method will strengthen the Group's financial structure and limit cash outflow during the phase when major investments are being finalised and that are expected to generate significant EBITDA in the coming years.

Subject to approval by the General Meeting, the new shares will be issued at a price equal to 90% the average opening price over 20 trading days preceding 29 April 2016, minus the amount of the dividend.

Outlook: solid foundations and a favourable calendar for profitable growth in 2016

Bolstered by its long-term strategic investments and measures to improve its operating performance, the Group confirms its guidance for profitable growth in 2016. This period will also be marked by major world-class sports events such as the Euro Football Championship and the Brazilian Olympic Games.

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Upcoming events: First-quarter sales: 26 April 2016 (after the close of trading)

Investor Relations Media Relations Erick Rostagnat Tel.: +33 (0)4 72 31 54 20 infos.finance@gl-events.com

Stéphanie Stahr Tel.: +33 (0)1 53 48 80 57 stephanie.stahr@cmcic.fr

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