MESSAGE FROM Arnaud Lagardère

Ladies and Gentlemen, dear Shareholders,

2019 was a year of transformation and refocusing for the Lagardère group.

Our strategy is now concentrated on two priority areas: Lagardère Publishing, our power engine, and Lagardère Travel Retail, our growth engine.

These two divisions are highly complementary in terms of growth and profitability and will give the Group a more coherent profile, as regards both industry leadership and market development.

Even though it has involved some painful decisions, this deep-seated transformation means that we can continue expanding our two businesses - among the leaders in their industries - thereby guaranteeing the Group's robustness and staying power.

The disposals carried out as part of our strategic refocusing have given us the resources we needed to strengthen our divisions on their respective markets, with several large-scale acquisitions finalised in 2019.
These included Gigamic, Short Books and Blackrock Games at Lagardère Publishing, and International Duty Free (IDF) at Lagardère Travel Retail.

" THESE TWO DIVISIONS ARE HIGHLY COMPLEMENTARY IN TERMS OF GROWTH AND PROFITABILITY AND WILL GIVE THE GROUP A MORE COHERENT PROFILE"

Revenue for Lagardère Publishing came in at €2,384 million for 2019, up 5.9% on a consolidated basis and up 2.8% like for like. Recurring EBIT climbed 10% to €220 million.
Lagardère Travel Retail also delivered growth, with revenue up 16.1% on a consolidated basis (up 6.3% like for like) at €4,264 million, and recurring EBIT €31 million higher at €152 million. We emerged from 2019 with a streamlined profile and having delivered on our forecasts, posting recurring EBIT of €361 million for the target scope.

Within the context of this transformation, I would like to emphasise the importance I place on our CSR policy, which is now integral to how businesses are assessed and valued. We have identified three priorities which will continue to guide our efforts in this area: placing people at the heart of our strategy, reducing the environmental impact of our products and services, and sharing the social and cultural diversity of our businesses.

Our efforts over the past few years to give our Group a renewed attractiveness and to create value for our shareholders will continue apace despite the current crisis. Our achievements would not have been possible without the unwavering commitment and talent of all of our employees, to whom I am sincerely grateful.

The Covid-19 epidemic which first emerged in China at the beginning of 2020 before spreading to the rest of the world is having a significant impact on our businesses, and particularly Travel Retail. At the date of this document, it is not currently possible to foresee how this unprecedented crisis will develop going forward. Given this context, we have decided to suspend the guidance announced on 27 February 2020, and have rolled out a cost cutting plan in agreement with our customers and partners.

I would like to stress that since the early days of the epidemic, the Group's primary concern has been how best to protect our employees, whose dedication and adaptability has been outstanding throughout this challenging period.

For these reasons, and in order to reflect the appropriate solidarity and corporate responsibility in the current climate, the Managing Partners, in agreement with the Supervisory Board, have decided to withdraw the proposed dividend in respect of 2019.

I would like to thank all of our shareholders for their loyalty and support.