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GL events Earnings Release 2023

Apr 20, 2023

1368_iss_2023-04-20_93b6e42b-2c8e-4c12-9555-2071667cbcce.pdf

Earnings Release

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GL EVENTS' MOMENTUM REMAINS ON TRACK WITH GROWTH IN 2023 Q1 REVENUE OF 59%

GL EVENTS (FR0000066672, GLO), THE INTEGRATED EVENT INDUSTRY GROUP, ANNOUNCES ITS 2023 FIRST QUARTER REVENUE:

  • Q1 2023 revenue: €351m, up 59%
  • A gradual recovery of activities in China
  • Confirmation of FY 2023 targets
Reported basis
Sales by division
(€m)
2020 2021 2022 2023 Change
23/22
Change
23/21
LIVE 113.4 68.4 125.2 150.4 +20 % +120 %
EXHIBITIONS 42.8 17.5 40.4 112.7 +179 % +544 %
VENUES 57.1 10.4 54.7 88.0 +61 % +745 %
CONSOLIDATED TOTAL 213.3 96.3 220.3 351.1 +59 % +265 %

Olivier Ginon, Chairman-CEO of GL events Group, commented:

"GL events maintained strong momentum in the first quarter of 2023 with growth in revenue of nearly 60% to €351m, following a record year in 2022. This very high level of activity remains on track with last year's fourth quarter performance and is explained by the confirmation of the recovery of our exhibition activities, the continuing strength of the Live division and pre-crisis revenue levels for Venues. Supported by the steadfast commitment of our teams to whom I express my gratitude, our business operations have continued to rebound, as exemplified by the success of Sirha, Global Industrie in Lyon and the Première Vision exhibition in France. The Chinese market, for its part, began its recovery in late March. And while, reflecting our disciplined management approach, we remain vigilant in the face of uncertainties with respect to the macroeconomic context and the banking sector, based on the positive indicators for GL events Group at the start of 2023, we confirm our confidence in the targets set for the year in progress."

In Q1 2023, GL events' revenue amounted to €351.1m, up 59% from Q1 2022 and 56% like-for-like.1 This new record highlights the continuing momentum following the rebound in Europe in 2022 and the strong upturn in the Group's international activities, particularly in the Americas, Middle East

1 Definition provided at the end of the press release.

and Asia, which are experiencing strong growth. In addition, GL events' activities in China are also gradually recovering, with revenue of €15.7m.

REVENUE BY DIVISION

GL EVENTS LIVE registered growth of 20% with revenue of €150.4m, or up 15% like-for-like from the same period in 2022 that was still impacted by the health crisis. In France, GL events Live was successful in maintaining its portfolio of addresses and contributed to major prestigious events like the Saut Hermès international jumping show, France's International Agricultural Fair (SIA), the Dassault Systèmes sales kick-off and presentations of the Christian Dior Homme and Haute Couture collections, confirming the strong recovery of events. Internationally, the Group has seen a resumption of activity in China and robust growth in the Americas.

GL EVENTS EXHIBITIONS reported revenue of €112.7m, up 179% (178% LFL) from one year earlier. B2B exhibitions continued to rebound in Q1 2023. The division has also benefited from the favourable effect of biennial events (Sirha Lyon, Be Positive). Global Industrie has largely benefited as an event organised in odd-numbered years in Lyon. Première Vision Paris is also continuing its post-COVID recovery, CFIA Rennes is actually exceeding the pre-COVID performances and Hyvolution Paris is still experiencing very steady growth. In China, the division relaunched its Beijing exhibitions with encouraging performances in terms of attendance by B&D, Wallpaper Expo and Door Expo despite an exhibitor offering still limited by a marketing period that was shortened by the health crisis in December and January.

GL EVENTS VENUES had revenue of €88.0m, up 61% (62% LFL) compared to 2022 that was still significantly impacted by the government-ordered closures of January 2022. This division has returned to pre-COVID business levels based on the performances of its dynamic destinations: Paris, Lyon, Clermont Ferrand, Toulouse or Strasbourg in France, Budapest, The Hague and Brussels in Europe and Sao Paulo and Rio de Janeiro in Brazil. The newly integrated sites in Chile, currently in the start-up phase of commercialisation, are expected to have an impact starting in the second half of 2023.

PALAIS BRONGNIART - TEAM USA HOUSE FOR THE PARIS 2024 OG

The United States Olympic and Paralympic Committee (USOPC), in partnership with On Location, has selected the Palais Brongniart as the future home of Team USA for the Paris 2024 Olympic Games.

Palais Brongniart, a historical French landmark located in the heart of the French capital, managed by GL events, will for a few weeks become the meeting place and hub for the US community in France. Palais Brongniart will welcome the families, future athletes in training, sponsors, donors and fans who have been waiting for more than 4 years for this opportunity to meet Team USA.

During the Paris 2024 Olympic Games, Palais Brongniart will be transformed into the Team USA House featuring entertaining and interactive events, Team USA athlete appearances, a convivial venue for Olympic Games viewing opportunities, celebrating victories and enjoying American and Parisian-inspired food and beverage.

ESG POLICY

The Group has reinforced its ESG policy in three areas: reducing its carbon footprint, enhancing its circular economy performance, waste management, and promoting regional socioeconomic development through diversity, ethical practices and responsible purchasing.

In the first quarter, with the assistance of the firm Ecoact, the Group completed the measurement of its carbon footprint for 2022. The results show a 22% reduction in emissions compared to the data published in 2019 for all three reporting scopes. This measurement was carried out in accordance with the GHG protocol method as part of the Group's medium-term goal of obtaining SBTI certification.

This performance reflects the implementation of the energy conservation plan (with a target of reducing consumption by 25%) and the energy mix implemented over several years. For example, in 2022, 52% of the Group's electricity (France and International) will qualify as renewable, with 100% of the Venues in France supplied with green electricity.

This key target for reducing the carbon footprint is monitored at the corporate level of the Group CSR Department by the climate reporting manager.

OUTLOOK

The Group confirms its guidance for 2023 with a target for growth in annual revenue of 5%, an improvement in its margin, a €80m-85m CAPEX plan and the continuing roll-out of its ESG policy.

UPCOMING EVENTS

  • Annual General Meeting 27 April 2023
  • H1 2023 revenue and results 20 July 2023 (after the close of trading)
  • Q3 2023 revenue– 18 October 2023 (after the close of trading)

POST-IAS 29 PRESENTATION

Sales by division (€m) Reported
basis
2020 2021 2022 2023 Change
23/22
Change
23/21
LIVE 113.4 68.4 125.2 150.2 +20 % +120 %
EXHIBITIONS 42.8 17.5 40.4 112.7 +179 % +544 %
VENUES 57.1 10.4 54.7 88.0 +61 % +745 %
CONSOLIDATED TOTAL 213.3 96.3 220.3 350.9 +59 % +264 %

ABOUT GL EVENTS

www.gl-events.com

About GL events: The Group is a world-class provider of integrated solutions and services for events operating across the three main market segments: conventions, conferences, congresses; cultural, sports and political events; trade shows / B2B and B2C exhibitions and consumer fairs. GL events' activities are organised into three major business divisions. GL events Live provides a complete range of services for corporate, institutional and sports events, and offers turnkey solutions from consulting and design to staging the event itself.

GL events Exhibitions manages and coordinates the Group's portfolio of more than 300 proprietary trade fairs covering a wide range of sectors: food industry, culture, textiles/fashion, manufacturing… GL events Venues manages a network of 59 venues (convention and exhibition centres, concert halls and multi-purpose facilities) in France and international destinations.

Present on five continents with operations in more than 20 countries, GL events has 5,119 employees. GL events is listed on Euronext Paris, Compartment B (mid-caps).

INVESTOR RELATIONS MEDIA RELATIONS
GL events FTI Consulting
Sylvain BECHET Emily Olivier
Tel.: +33 (0)4 72 31 54 20 Tel.: +33 (0)1 47 03 68 65
[email protected] [email protected]

ISIN FR0000066672 - BLOOMBERG GLO FP - REFINITIV GLTN.PA - FTSE 581 LEI 9695002PXZMQNBPY2P44

DEFINITIONS

Constant exchange rates: average exchange rate of N applied to the previous period (N-1)

Organic growth: growth in revenue excluding changes in the scope of consolidation

Constant structure

  • o for acquisitions of the period: by adding to revenue of prior periods the sales of the acquired company
  • o for disposals of the period: by subtracting from revenue of prior periods the sales of the company sold

LFL: like-for-like defined as at constant structure and exchange rates (see the definitions above for "constant structure" and "constant exchange rates")

IFRS 16: restatement of leases, standard applicable as from 1 January 2019

  • o Measurement of leases in the balance sheet under assets (right-of-use assets), with the recognition of a corresponding debt under liabilities (lease liabilities)
  • o A portion of lease payments is recognised under operating expenses ("amortisation") and a portion under financial expense ("cost of debt")
  • o Covenants are determined excluding the application of this standard.

IAS 29: financial reporting in hyperinflationary economies For the Group, Turkey is included in the list of countries covered by this standard. In consequence, the accounts of the Group's Turkish companies are henceforth translated at the closing rate and no longer at the average rate for the period.