1.7 Major investments
The Group’s major contractual commitments in terms of investments are described in notes 32 and 33 to the 2020 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) | 2020 (1) | 2019 (1) | 2018 (1) | |
Lagardère Publishing | 39 | 35 | 42 | |
Lagardère Travel Retail | 121 | 162 | 130 | |
Other Activities | 7 | 11 | 9 | |
Total target scope | 167 | 208 | 181 | |
Assets sold and pending disposal at Lagardère Active | 3 | 7 | 34 | |
Total | 170 | 215 | 215 |
(1) In accordance with IFRS 5, Lagardère Sports has been classified as a discontinued operation at 31 December 2020 and 31 December 2019. Its earnings and cash flows for 2020, 2019 and 2018 were respectively classified in profit (loss) from discontinued operations and net cash from (used in) discontinued operations (see note 4.3 to the consolidated financial statements).
1.7.1.2 PURCHASES OF INVESTMENTS
(in millions of euros) | 2020 (1) | 2019 (1) | 2018 (1) | |
Lagardère Publishing | 31 | 32 | 14 | |
Lagardère Travel Retail | 2 | 249 | 308 | |
Other Activities | 2 | 3 | 7 | |
Total target scope | 35 | 284 | 329 | |
Assets sold and pending disposal at Lagardère Active | 1 | 3 | 10 | |
Total | 36 | 287 | 339 |
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 2020 and 31 December 2019. Its earnings and cash flows for 2020, 2019 and 2018 were respectively classified in profit (loss) from discontinued operations and net cash from (used in) discontinued operations (see note 4.3 to the consolidated financial statements).
1.7.2 MAJOR INVESTMENTS IN 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.
1.7.3 MAJOR INVESTMENTS IN 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.
1.7.4 MAJOR INVESTMENTS IN 2020
Purchases of property, plant and equipment and intangible assets represented an outflow of €170 million, €45 million less than in 2019. Purchases chiefly relate to Lagardère Travel Retail (outflow of €121 million), a significant portion of which corresponds to commitments undertaken in 2019 as well as investments in information systems and developments in China. Most of the balance reflected the €39 million in outflows from Lagardère Publishing’s logistics and IT projects in the United Kingdom and new information systems projects in France.