1.7 Major investments
The Group’s major contractual commitments in terms of investments are described in notes 33 and 34 to the 2019 consolidated financial statements.
1.7.1 INVESTMENT AND INNOVATION POLICY
1.7.1.1 PURCHASES OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
| (in millions of euros) | 2019 (2) | 2018 (2) | 2017 (1)/(2) |
|---|---|---|---|
| Lagardère Publishing | 35 | 42 | 46 |
| Lagardère Travel Retail | 162 | 130 | 138 |
| Other Activities | 11 | 9 | - |
| Total target scope | 208 | 9 | 184 |
| Assets sold and pending disposal at Lagardère Active | 7 | 34 | 25 |
| Total | 215 | 215 | 209 |
(1) 2017 data restated for the retrospective application of IFRS 15.
(2) In accordance with IFRS 5, Lagardère Sports has been classified as a discontinued operation at 31 December 2019. Its cash flows have been recognised in net cash from (used in) discontinued operations (see note 4.3 to the consolidated financial statements).
1.7.1.2 INVESTISSEMENTS FINANCIERS
| (in millions of euros) | 2019 (1) | 2018 (1) | 2017 (1) |
|---|---|---|---|
| Lagardère Publishing | 32 | 14 | 31 |
| Lagardère Travel Retail | 249 | 308 | 18 |
| Other Activities | 3 | 7 | 10 |
| Total target scope | 284 | 329 | 59 |
| Assets sold and pending disposal at Lagardère Active |
3 | 10 | 4 |
| Total | 287 | 339 | 63 |
These figures are taken directly from the consolidated statement of cash flows.
(1) In accordance with IFRS 5, Lagardère Sports has been classified as a discontinued operation at 31 December 2019. Its cash flows have been recognised in net cash from (used in) discontinued operations (see note 4.3 to the consolidated financial statements).
1.7.2 MAJOR INVESTMENTS 2017
Purchases of property, plant and equipment and intangible assets chiefly concerned Lagardère Travel Retail (in line with the Travel Retail growth strategy) and Lagardère Publishing (in particular for logistics projects in the United Kingdom and the United States).
Purchases of investments mainly related to acquisitions carried out by Lagardère Publishing, in particular Bookouture, an e-book publisher in the United Kingdom, and IsCool Entertainment, a developer of social games for web and mobile, as well as Jessica Kingsley and Summersdale, two UK-based publishing houses. Note that assets sold and pending disposal at Lagardère Active include the majority stake acquired in the capital of Aito Media Group, a Finnish audiovisual production company. The others correspond to smaller-scale acquisitions and earn-outs at Lagardère Travel Retail and in the Other Activities.
1.7.3 MAJOR INVESTMENTS 2018
Purchases of property, plant and equipment and intangible assets essentially concerned Lagardère Travel Retail, in line with its growth strategy, and to a lesser extent Lagardère Publishing (particularly logistics projects in the United Kingdom and the United States) and the assets sold and pending disposal at Lagardère Active (fitting out of new premises following the sale of a building in Levallois-Perret).
Purchases of investments mainly included the November 2018 acquisition of Hojeij Branded Foods (HBF), a leading Foodservice operator in North America, by Lagardère Travel Retail. Purchases also included Lagardère Publishing’s acquisition of US publisher Worthy Publishing Group and the acquisition of a majority stake in Skyhigh TV, the Netherlands’ leading independent production company, in assets sold and pending disposal at Lagardère Active.
1.7.4 MAJOR INVESTMENTS 2019
Purchases of property, plant and equipment and intangible assets represented a net outflow of €215 million in 2019. They chiefly related to Lagardère Travel Retail (€162 million), a significant portion of which corresponded to the financing of new points of sale. The balance (€35 million) stemmed essentially from Lagardère Publishing and primarily reflected the end of investments in logistics projects in the United Kingdom and in new information systems projects in France.
Purchases of investments represented an outflow of €287 million in 2019 and mostly related to the acquisition of the International Duty Free (IDF) group in Belgium, and to a lesser extent the acquisition of Smullers in the Netherlands by Lagardère Travel Retail. Purchases of investments also included Lagardère Publishing’s acquisitions of Gigamic, Blackrock Games and Short Books in the United Kingdom.