5.3 Lagardère SCA consolidated financial statements at 31 December 2019

Consolidated income statement​

(in millions of euros)   2019 2018(*)
Revenue (Notes 5 et 6) 7 211 6 868
Other income from ordinary activities   84 83
Total income from ordinary activities​   7 295 6 951
Purchases and changes in inventories   (2 697) (2 509)
External charges   (1 847) (1 869)
Payroll costs   (1 587) (1 579)
Depreciation and amortisation other than on acquisition-related
intangible assets		   (180) (155)
Depreciation of right-of-use assets (Note 18) (546) (464)
Amortisation of acquisition-related intangible assets
and other acquisition-related expenses		   (88) (72)
Restructuring costs (Note 8) (42) (71)
Gains (losses) on:      
  • Disposals of assets​
 (Note 9) 133 205
  • Lease modifications​
 (Note 18) 3 (4)
  • Fair value adjustments due to changes in control​
   1 -
Impairment losses on goodwill, property, plant and equipment
and intangible assets		 (Note 10) (34) (44)
Other operating expenses (Note 11) (83) (35)
Other operating income (Note 12) 77 94
Income from equity-accounted companies (Note 20) 6 3

 

(in millions of euros)   2019 2018(*)
Profit before finance costs and tax​ (Note 5) 411 451
Financial income (Note 13) 10 14
Financial expenses (Note 13) (63) (71)
Interest expense on lease liabilities (Note 18) (85) (76)
Profit before tax   273 318
Income tax expense (Note 14) (55) (124)

 

(in millions of euros)   2019 2018(*)
Profit from continuing operations​   218 194
Profit (loss) from discontinued operations(**)   (207) 5

 

(in millions of euros)   2019 2018(*)
Profit for the year​   11 199
Attributable to:      
Owners of the Parent   (15) 177
Minority interests   26 22
Earnings per share – Attributable to owners of the Parent:      
Basic earnings per share (in €) (Note 15) (0,12) 1,36
Diluted earnings per share (in €)​ (Note 15) (0,12) 1,34
Earnings per share from continuing operations – Attributable
to owners of the Parent:​		      
Basic earnings per share (in €)​ (Note 15) 1,47 1,33
Diluted earnings per share (in €) (Note 15) 1,46 1,32

(*) Data for 2018 restated for the full retrospective application of IFRS 16 (see note 1.1) and for the reclassification of Lagardère Sports as a discontinued operation in accordance with IFRS 5 (see note 4.3).
(**) See note 4.3 for more details on the impact of IFRS 5 — Non-current Assets Held for Sale and Discontinued Operations.

Items appearing in the Annual Financial Report are cross‑referenced with the following symbol AFR

Consolidated statement of comprehensive income​

(in millions of euros) 2019 2018(*)
Profit for the year(*) (1)​ 11 199
Actuarial gains and losses on pensions and other post-employment benefit
obligations		 (19) 8
Tax relating to actuarial gains and losses on pensions and other post-employment
benefit obligations		 5 (2)
Change in fair value of investments in non-consolidated companies - (1)
Other comprehensive income (expense) for the year, net of tax,
that will not be reclassified subsequently to profit or loss (2)​		 (14) 5
Currency translation adjustments 54 41
Change in fair value of derivative financial instruments: (30) (13)
  • Unrealised gains and losses recognised directly in equity​
 (31) (14)
  • Amounts reclassified from equity to profit or loss​
 1 1
Share of other comprehensive income of equity-accounted companies, net of tax: 1 1
  • Unrealised gains and losses recognised directly in equity​
 - -
  • Amounts reclassified from equity to profit or loss​
 1 1
Translation reserve 1 1
Valuation reserve - -
Tax relating to components of other comprehensive income (expense) 5 3

 

(in millions of euros) 2019 2018(*)
Other comprehensive income for the year, net of tax,
that may be reclassified subsequently to profit or loss (3)​		 30 32

 

(in millions of euros) 2019 2018(*)
Other comprehensive income for the year, net of tax (2)+(3)​ 16 37

 

(in millions of euros) 2019 2018(*)
Total comprehensive income for the year (1)+(2)+(3)​ 27 236
Attributable to:    
Owners of the Parent - 211
Minority interests 27 25

(*) Data for 2018 restated for the full retrospective application of IFRS 16 (see note 1.1).

Consolidated statement of cash flows

(in millions of euros)   2019 2018 (*)
Profit from continuing operations   218 194
Income tax expense (Note 14) 55 124
Finance costs, net (Note 13) 138 133

 

(in millions of euros)   2019 2018 (*)
Profit before finance costs and tax   411 451
Depreciation and amortisation expense   811 682
Impairment losses, provision expense and other non-cash items   14 26
(Gains) losses on disposals of assets   (137) (201)
Dividends received from equity-accounted companies   6 5
(Income) loss from equity-accounted companies (Note 20) (6) (3)
Changes in working capital(**) (Note 26) 25 16

 

(in millions of euros)   2019 2018 (*)
Cash flow from operating activities   1 124 976

Income taxes paid

   (52) (72)

 

(in millions of euros)   2019 2018 (*)

Net cash from operating activities

 (A) 1 072 904

Cash used in investing activities

      
  • Purchases of intangible assets and property,
    plant and equipment
 (Note 5) (215) (215)
  • Purchases of investments
 (Notes 4.2 et 5) (276) (336)
  • Cash acquired through acquisitions
 (Note 5) 3 15
  • Purchases of other non-current assets
 (Note 5) (14) (18)

 

(in millions of euros)   2019 2018 (*)
Total cash used in investing activities (B) (502) (554)

 

(in millions of euros)   2019 2018 (*)
Cash from investing activities      
Proceeds from disposals of non-current assets      
  • Disposals of intangible assets and property,
    plant and equipment
 (Note 5) 32 254
  • Disposals of investments
 (Note 5) 339 113
  • Cash transferred on disposals
 (Note 5) (32) 21
Decrease in other non-current assets (Note 5) 9 8

 

(in millions of euros)   2019 2018 (*)
Total cash from investing activities (C) 348 396
Interest received (D) 7 5

 

(in millions of euros)   2019 2018 (*)
Net cash used in investing activities (F) = (B) + (C) + (D) (147) (153)

 

(in millions of euros)   2019 2018 (*)
Net cash from operating and investing activities (G) = (A) + (F) 925 751

 

(in millions of euros)   2019 2018 (*)
Capital transactions      
  • Minority interests’ share in capital increases by subsidiaries
   5 1
  • (Acquisitions) disposals of treasury shares
   (31) (4)
  • Acquisitions) disposals of minority interests
   (2) (3)
  • Dividends paid to owners of the Parent(***)
   (172) (171)
  • Dividends paid to minority shareholders of subsidiaries
   (29) (27)

 

(in millions of euros)   2019 2018 (*)
Total capital transactions (H) (229) (204)

 

(in millions of euros)   2019 2018 (*)
Financing transactions      
  • Increase in debt
 (Note 29.1) 836 206
  • Decrease in debt
   (573) 2

 

(in millions of euros)   2019 2018 (*)
Total movements in debt (I) 263 208
Interest paid (J) (65) (56)
Decrease in lease liabilities (Note 18) - (J) (518) (443)
Interest paid on lease liabilities (Note 18) - (J) (77) (76)

 

(in millions of euros)   2019 2018 (*)
Net cash used in financing activities (K) = (H) + (I) + (J) (626) (571)

 

(in millions of euros)   2019 2018 (*)
Other movements      
  • Effect on cash of changes in exchange rates
   (5) (4)
  • Effect on cash of other movements
   13 (33)

 

(in millions of euros)   2019 2018 (*)
Total other movements (L) 8 (37)
Net cash from (used in) discontinued operations(****) (M) (99) 40

 

(in millions of euros)   2019 2018 (*)
Change in cash and cash equivalents (N) = (G) + (K) + (L) + (M) 208 183

 

(in millions of euros)   2019 2018 (*)
Cash and cash equivalents at beginning of year   660 477

 

(in millions of euros)   2019 2018 (*)
Cash and cash equivalents at end of year (Note 26) 868 660

(*) Data for 2018 restated for the full retrospective application of IFRS 16 (see note 1.1) and for the reclassification of Lagardère Sports as a discontinued operation in accordance with IFRS 5 (see note 4.3).
(**) Including changes in working capital relating to lease liabilities representing a negative €9 million, of which a negative €8 million in respect of concession agreements in 2019 (a negative €1 million and €1 million, respectively, in 2018).
(***) Including the portion of profit for the year paid to the General Partners.
(****) See note 4.3 for more details on the impact of discontinued operations (IFRS 5).

Consolidated balance sheet

ASSETS (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Intangible assets (Note 17) 1 135 1 196 1 058
Goodwill (Note 16) 1 564 1 624 1 809
Right-of-use assets (Note 18) 2 859 2 552 2 378
Property, plant and equipment (Note 19) 811 794 724
Investments in equity-accounted companies (Note 20) 73 70 121
Other non-current assets (Note 21) 154 196 210
Deferred tax assets (Note 14) 210 215 248

 

ASSETS (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total non-current assets   6 806 6 647 6 548
Inventories (Note 22) 631 566 583
Trade receivables (Note 23) 1 068 1 294 1 414
Other current assets (Note 24) 717 872 934
Cash and cash equivalents (Note 26) 913 710 546

 

ASSETS (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total current assets   3 329 3 442 3 477

 

ASSETS (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Assets held for sale (Note 4.3) 994 701 6

 

ASSETS (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total assets   11 129 10 790 10 031

(*) Data at 1 January 2018 and 31 December 2018 restated for the full retrospective application of IFRS 16 (see note 1.1).

Consolidated balance sheet

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Capital social   800 800 800
Primes et réserves   737 737 699
Résultat de la période (part du Groupe)   (15) 177 164

 

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Equity attributable to owners of the Parent   1 522 1 663  
Minority interests (Note 27) 150 154 137

 

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total equity   1 672 1 868 1 800
Provisions for pensions and other
post-employment benefit obligations		 (Note 28) 106 135 163
Non-current provisions for contingencies
and losses		 (Note 28) 156 190 220
Non-current debt (Note 29) 1 842 1 020 1 555
Non-current lease liabilities (Note 18) 2 527 2 283 2 115
Other non-current liabilities (Note 32) 51 237 120
Deferred tax liabilities (Note 14) 278 244 231

 

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total non-current liabilities   4 960 4 109 4 404
Current provisions for contingencies and losses (Note 28) 138 146 147
Current debt (Note 29) 532 1 065 370
Current lease liabilities (Note 18) 570 458 431
Fournisseurs et comptes rattachés   1 249 1 188 1 364
Other current liabilities (Note 32) 1 215 1 541 1 515

 

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total current liabilities   3 704 4 398 3 827

 

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Liabilities associated with assets held for sale (Note 4.3) 793 415 -

 

EQUITY AND LIABILITIES (in millions of euros) 31 Dec. 2019 31 Dec. 2018(*) 1 Jan. 2018(*)
Total equity and liabilities   11 129 10 790 10 031

(*) Data at 1 January 2018 and 31 December 2018 restated for the full retrospective application of IFRS 16 (see note 1.1).

Consolidated statement of changes in equity

(in millions of euros) Share
capital		 Share
premiums		 Other
reserves		 Treasury
shares		 Translation
reserve		 Valuation
reserve		 Equity
attributable
to owners
of the Parent		 Minority
interests		 Total equity
At 31 December 2017 800 34 1 122  (92) (82) 3 1 785 139 1 924
Impact of first-time
application of IFRS 9(c)		 - - (8) - - - (8) - (8)
Impact of first-time
application of IFRS 16(c)		 - - (117) - 3 - (114) (2) (116)

 

(in millions of euros) Share
capital		 Share
premiums		 Other
reserves		 Treasury
shares		 Translation
reserve		 Valuation
reserve		 Equity
attributable
to owners
of the Parent		 Minority
interests		 Total equity
At 1 January 2018 800 34 997 (92) (79) 3 1 663 137 1 800
Profit for the year - - 177 - - - 177 22 199
Other comprehensive
income (expense)
for the year(a)		 - - 6 - 38 (10) 34 3 37

 

(in millions of euros) Share
capital		 Share
premiums		 Other
reserves		 Treasury
shares		 Translation
reserve		 Valuation
reserve		 Equity
attributable
to owners
of the Parent		 Minority
interests

Total equity
Total comprehensive
income (expense) for
the year		 - - 183 - 38 (10) 211 25 236
Dividends paid - - (170) - - - (170) (28) (198)
Parent company capital
increase/reduction(b)		 - (11) (4) 15 - - - - -
Minority interests’ share
in capital increases		 - - - - - - - 137 1
Changes in treasury shares - - - (4) - - (4) - (4)
Share-based paymentss - - 13 - - - 13 - 13
Effect of transactions
with minority interests		 - - 4 - - - 4 (4) -
Changes in scope of
consolidation and other		 - - (1) - (2) - (3) 23 20

 

(in millions of euros) Share
capital		 Share
premiums		 Other
reserves		 Treasury
shares		 Translation
reserve		 Valuation
reserve		 Equity
attributable
to owners
of the Parent		 Minority
interests

Total equity
At 31 December 2018 800 23 1 022 (81) (43) (7) 1 714 154 1 868
Profit for the year - - (15) - - - (15) 26 11
Other comprehensive
income (expense)
for the year(a)		 - - (14) - 54 (25) 15 1 16

 

(in millions of euros) Share
capital		 Share
premiums		 Other
reserves		 Treasury
shares		 Translation
reserve		 Valuation
reserve		 Equity
attributable
to owners
of the Parent		 Minority
interests

Total equity
Total comprehensive
income (expense) for
the year		 - - (29) - 54 (25) - 27 27
Dividends paid - - (172) - - - (172) (29) (201)
Parent company capital
increase/reduction(b)		 - (14) (1) 15 - - - - -
Minority interests’ share
in capital increases		 - - - - - - - 5 5
Changes in treasury shares - - 10 - - (5) 5 (7) (2)
Share-based payments - - 7​ - - - 7 - 7
Effect of transactions
with minority interests		 - - (1) - - - (1) - (1)
Changes in scope of
consolidation and other		 - - - - - (5) 5 (7) (2)

 

(in millions of euros) Share
capital		 Share
premiums		 Other
reserves		 Treasury
shares		 Translation
reserve		 Valuation
reserve		 Equity
attributable
to owners
of the Parent		 Minority
interests

Total equity
At 31 December 2019 800 9 836 (97) 11 (37) 1 522 150 1 672

(a) See note 27 to the consolidated financial statements.
(b) Capital increase carried out by capitalising reserves and capital reduction carried out by cancelling treasury shares.
(c) Data at 1 January 2018 restated for the full retrospective application of IFRS 16 and for the application of IFRS 9.

Total gains and losses recognised in equity in respect of groups of assets (disposal groups) held for sale at 31 December 2019 represented a net loss of €23 million, including €5 million in translation losses, €17 million in actuarial losses on provisions for pensions and other post-employment benefit obligations and a negative €1 million impact resulting from the fair value hedging reserve (see note 4.3).