Lagardère S.A. — Earnings Release 2023

Apr 18, 2023

Paris, 18 April 2023, 8:00 a.m.

Remarkable growth in Lagardère group revenue (up 24.4%1), driven by strong momentum at Lagardère Travel Retail

Lagardère Publishing: revenue up by a slight 1.0%1 versus a historically high comparison basis and despite a less dynamic market

Lagardère Travel Retail: excellent performance (up 44.2%1), boosted by the growth in international air traffic, the beginning of the recovery in North Asia and the success of numerous commercial initiatives.

Other Activities: revenue up 3.3%1, lifted by a strong performance from live performance venues

Arnaud Lagardère, Chairman and Chief Executive Officer of Lagardère SA, commented:"We maintained our remarkable momentum in early year trading, with revenue surging by 24.4% year on year during the first quarter. Our two core businesses delivered solid performances, with Lagardère Travel Retail registering strong growth and Lagardère Publishing continuing to advance. In addition, the Group's Other Activities also remained on the growth path. Our strategy has been validated by the Group's dynamic since the beginning of the year, with Lagardère group increasingly taking advantage of the strengths of its model."

I. REVENUE

Revenue for the Lagardère group climbed sharply over the first three months of 2023 to €1,675 million, up 28.4% as reported and up 24.4% like for like. The difference between reported and like-for-like revenue is attributable to a €33 million positive scope effect, mainly in connection with the acquisitions of Marché International (Germany), Creative Table Holdings Ltd (Dubai) and Costa Coffee in Poland by Lagardère Travel Retail, and of Welbeck Publishing Group and Paperblanks by Lagardère Publishing and to a €10 million positive currency effect, chiefly resulting from the appreciation of the US dollar (€18 million positive impact), offset by the depreciation of the British pound (€9 million negative impact).

¹ On a like-for-like basis (see Glossary).

	Revenue (€m)		Change vs. 2022 (%)
	Q1 2022	Q1 2023	reported	like for like
Lagardère Publishing	554	570	+3.0%	+1.0%
Lagardère Travel Retail	694	1,046	+50.8%	+44.2%
Other Activities*	56	59	+3.4%	+3.3%
LAGARDÈRE	1,304	1,675	+28.4%	+24.4%

* Lagardère News (Paris Match, Le Journal du Dimanche, JDD Magazine, Europe 1, Europe 2, RFM, and the Elle brand licence), Lagardère Live Entertainment, Lagardère Paris Racing and the Group Corporate function.

Unless otherwise specified, the changes presented below for the first quarter of 2023 are calculated on a like-for-like basis.

Lagardère Publishing

First-quarter 2023 revenue totalled €570 million, up 3.0% as reported and up 1.0% like for like. In a less dynamic market, Lagardère Publishing maintained strong trading momentum. The difference between reported and like-forlike revenue is primarily attributable to a €12 million positive scope effect linked chiefly to the acquisition of Welbeck Publishing Group and Paperblanks.

In France, revenue for the division grew strongly by 10.7% during the quarter. Business was driven by a more dynamic publication schedule amid a stable market. General Literature performed well, with bestsellers such as Prince Harry's Spare and Pierre Lemaitre's Le Silence et la Colère and strong momentum at Le Livre de Poche. Illustrated Books was lifted by Sarah Rivens' successful Captive series and the release of graphic novel film tie-in Asterix: The Middle Kingdom. There was also notable growth in tourist guides, linked to the recovery in travel.

In the United Kingdom, revenue grew sharply by 9.7% in a stable market, reflecting an upbeat start to 2023, particularly in the Adult Trade segment especially the digital book publisher Bookouture.

Revenue in the United States was down by 11.0%, on the back of a lighter publication schedule compared to 2022 and in a sluggish book market.

In Spain/Latin America, revenue rose by 15.6%, mainly due to the strong performance of Larousse in Mexico.

Revenue from Partworks was down by 9.3%, owing to a less dynamic launch campaign than in 2022.

E-books accounted for 8.2% of total Lagardère Publishing revenue in first-quarter 2023, versus 8.1% in first-quarter 2022, while digital audiobooks represented 5.2% of revenue compared to 4.8% in the same year-ago period.

Lagardère Travel Retail

First-quarter 2023 revenue totalled €1,046 million, up 50.8% as reported and up 44.2% like for like (favourable base effect, as Q1 2022 was impacted by the Omicron wave). The difference between reported and like-for-like revenue is attributable to an €11 million positive currency effect, resulting mainly from the appreciation of the US dollar (€10 million positive impact).

Revenue in France jumped by 41%, although business was affected by the strikes.

The EMEA region (excluding France) confirmed its recovery, posting strong growth of 54% thanks to international traffic, with excellent performances in Italy (up 116%), Belgium (up 72%), Poland (up 55%) and Romania (up 35%).

North America maintained its strong momentum, with growth of 29% driven by sustained activity in the United States, where business was up 21%. Revenue also recovered strongly in Canada, surging 114% over the quarter.

Business in Asia-Pacific resumed, with 61% revenue growth in the region. North Asia2 grew by 56%, benefiting from the end of the zero-Covid policy in China and the gradual reopening of borders.

² Mainland China, Hong Kong and Japan.

Other Activities

First-quarter 2023 revenue totalled €59 million, up 3.4% as reported and up 3.3% like for like.

Revenue growth was driven mainly by Lagardère Live Entertainment (up 241%), which benefited from live performance venues being free from health restrictions and open throughout the quarter.

Revenue for Lagardère News3 declined by 7.6% over the period. Revenue for the Radio segment was down by 9.6% in the wake of lower audience figures, while Press revenue was down by 10.6%. Lastly, the international Elle licensing business grew by 1.8%.

II. KEY EVENTS SINCE 15 FEBRUARY 2023

On 10 March 2023, the Board of Directors of Lagardère SA unanimously confirmed the advisability of implementing the plan to make the Group's radio division (Europe 1, Europe 2 and RFM) autonomous, through a reorganisation of its ownership and governance structure.

The radio division would be consolidated under a holding company that would adopt the form of a limited partnership with shares, whose limited partners would be Lagardère group companies, and of which Arnaud Lagardère would be indirectly the General Partner and personally the Managing Partner. In this dual capacity, Arnaud Lagardère would be solely responsible for supervising the managers and teams of the radio division and would be the ultimate decision-maker on editorial policy. Constance Benqué would be appointed Chief Executive Officer of the limited partnership and would report to Arnaud Lagardère in her functions.

Proposed transaction between Lagardère SA and Vivendi SE

To date, the European Commission has until 14 June 2023 to take a decision.

It should be noted that the shares acquired by Vivendi SE from Amber Capital and in the public offer will not carry effective voting rights until the takeover is approved by the competition authorities, such that it can currently exercise only 38,387,791 voting rights representing approximately 22.81% of the total.

III. LIQUIDITY

The Group's liquidity position remains solid, with €1,615 million in available liquidity (available cash and short-term investments reported on the balance sheet totalling €633 million and an undrawn amount on the revolving credit facility of €982 million).

IV. INVESTOR CALENDAR 4

• Annual General Meeting: Tuesday, 18 April 2023 at 10:00 a.m. at Casino de Paris.
• Ex-dividend date5: Wednesday, 19 April 2023, with the €1.30 per share dividend paid from 21 April 2023.
• First-half 2023 results: Tuesday, 25 July 2023 at 5:35 p.m.

³ Paris Match, Le Journal du Dimanche, JDD Magazine, Europe 1, Europe 2, RFM, and the Elle brand licence.

⁴ Dates susceptible to change. 5 Subject to approval by the Annual General Meeting on 18 April 2023

V. APPENDICES

CHANGES IN SCOPE OF CONSOLIDATION AND EXCHANGE RATES

In first-quarter 2023, the difference between reported and like-for-like data is attributable to a €10 million positive currency effect, chiefly resulting from the appreciation of the US dollar (€18 million positive impact), and to a €33 million positive scope effect.

The scope effect can be analysed as follows:

• a €33 million positive impact from acquisitions at Lagardère Travel Retail, including Marché International AG, Creative Table Holdings Ltd and Costa Coffee in Poland, and a €12 million positive impact from acquisitions at Lagardère Publishing, including Welbeck Publishing Group and Paperblanks;
• a €12 million negative impact, reflecting the creation of the joint venture incorporating Lagardère Travel Retail's activities in Australia and New Zealand, which was accounted for as a disposal.

VI. GLOSSARY

Lagardère uses alternative performance measures which serve as key indicators of the Group's operating and financial performance. These indicators are tracked by the Executive Committee in order to assess performance and manage the business, as well as by investors in order to monitor the Group's operating performance, along with the financial metrics defined by the IASB. These indicators are calculated based on accounting items taken from the consolidated financial statements prepared under IFRS and a reconciliation with those items is provided in this press release or in the first-quarter 2023 revenue presentation.

Like-for-like revenue

Like-for-like revenue is used by the Group to analyse revenue trends excluding the impact of changes in the scope of consolidation and in exchange rates.

The like-for-like change in revenue is calculated by comparing:

• revenue for the period and revenue for the prior-year period adjusted for companies consolidated for the first time during the period and consolidated companies divested during the period;
• revenue for the period and revenue for the prior-year period adjusted based on the exchange rates applicable in the period.

The scope of consolidation comprises all fully-consolidated entities. Additions to the scope of consolidation correspond to business combinations (acquired investments and businesses), and deconsolidations correspond to entities over which the Group has relinquished control (full or partial disposals of investments and businesses, such that the entities concerned are no longer included in the Group's financial statements using the full consolidation method).

The difference between reported and like-for-like figures is explained in section V – Appendices of this press release.

***

Created in 1992, Lagardère is an international group with operations in more than 40 countries worldwide. It employs some 27,400 people and generated revenue of €6,929 million in 2022. The Group focuses on three divisions: Lagardère Publishing (Book and e-Publishing, Board Games and Mobile Games), Lagardère Travel Retail (Travel Essentials, Duty Free & Fashion and Foodservice) and Lagardère News (Paris Match, Le Journal du Dimanche, JDD Magazine, Europe 1, Europe 2, RFM, and the Elle brand licence). The Group's operating assets also include Lagardère Live Entertainment and Lagardère Paris Racing. Lagardère shares are listed on Euronext Paris. www.lagardere.com

Important notice:

Some of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management's beliefs. These statements reflect such views and assumptions prevailing as of the date of the statements and involve known and unknown risks and uncertainties that could cause future results, performance or future events to differ materially from those expressed or implied in such statements. Please refer to the most recent Universal Registration Document filed in French by Lagardère SA with the Autorité des marchés financiers for additional information in relation to such factors, risks and uncertainties.

Lagardère SA has no intention and is under no obligation to update or review the forward-looking statements referred to above. Consequently, Lagardère SA accepts no liability for any consequences arising from the use of any of the above statements.

Press Contact

presse@lagardere.fr

Investor Relations Contact

Emmanuel Rapin Tel. +33 1 40 69 17 45 erapin@lagardere.fr