5.3 Lagardère SCA consolidated financial statements at 31 December 2020
Consolidated income statement
| (in millions of euros) | 2020 | 2019 | |
| Revenue | (Notes 5 et 6) | 4,439 | 7,211 |
| Other income from ordinary activities | 41 | 84 | |
| Total income from ordinary activities | 4,480 | 7,295 | |
| Purchases and changes in inventories | (1,438) | (2,697) | |
| External charges | (1,473) | (1,847) | |
| Payroll costs | (1,186) | (1,587) | |
| Depreciation and amortisation other than on acquisition-related intangible assets | (187) | (180) | |
| Depreciation of right-of-use assets | (Note 18) | (473) | (546) |
| Amortisation of acquisition-related intangible assets and other acquisition-related expenses | (109) | (88) | |
| Restructuring costs | (Note 8) | (55) | (42) |
| Gains (losses) on disposals of assets | (Note 9) | (7) | 134 |
| Gains and losses on leases(*) | (Note 18) | 171 | 3 |
| Impairment losses on goodwill, property, plant and equipment and intangible assets | (Note 10) | (151) | (34) |
| Other operating expenses | (Note 11) | (126) | (83) |
| Other operating income | (Note 12) | 63 | 77 |
| Income (loss) from equity-accounted companies | (Note 20) | (58) | 6 |
| Profit (loss) before finance costs and tax | (Note 5) | (549) | 411 |
| Financial income | (Note 13) | 8 | 10 |
| Financial expenses | (Note 13) | (84) | (63) |
| Interest expense on lease liabilities | (Note 18) | (74) | (85) |
| Profit (loss) before tax | (699) | 273 | |
| Income tax benefit (expense) | (Note 14) | 31 | (55) |
| Profit (loss) from continuing operations | (668) | 218 | |
| Profit (loss) from discontinued operations(**) | (20) | (207) | |
| Profit (loss) for the year | (688) | 11 | |
| Attributable to: | |||
| Owners of the Parent | (660) | (15) | |
| Minority interests | (28) | 26 | |
| Earnings per share – Attributable to owners of the Parent: | |||
| Basic earnings (loss) per share (in €) | (Note 15) | (5.11) | (0.12) |
| Diluted earnings (loss) per share (in €) | (Note 15) | (5.11) | (0.12) |
| Earnings per share from continuing operations – Attributable to owners of the Parent: | |||
| Basic earnings (loss) per share (in €) | (Note 15) | (4.94) | 1.47 |
| Diluted earnings (loss) per share (in €) | (Note 15) | (4.94) | 1.46 |
(*) Including gains and losses on lease modifications, negative variable lease payments and reductions in lease liabilities obtained in connection with Covid-19 (see note 18).
(**) 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) | 2020 | 2019 |
| Profit (loss) for the year (1) | (688) | 11 |
| Actuarial gains and losses on pensions and other post-employment benefit obligations(*) | (7) | (14) |
| Change in fair value of investments in non-consolidated companies | - | - |
| Other comprehensive income (expense) for the year, net of tax, that will not be reclassified subsequently to profit or loss (2) | (7) | (14) |
| Currency translation adjustments | (124) | 54 |
| Change in fair value of derivative financial instruments(*) | 8 | (25) |
| Share of other comprehensive income (expense) from equity-accounted companies(*) | - | 1 |
| Other comprehensive income (expense) for the year, net of tax, that may be reclassified subsequently to profit or loss (3) | (116) | 30 |
| Other comprehensive income (expense) for the year, net of tax (2)+(3) | (123) | 16 |
| Total comprehensive income (expense) for the year (1)+(2)+(3) | (811) | 27 |
| Attributable to: | ||
| Owners of the Parent | (778) | - |
| Minority interests | (33) | 27 |
(*) Net of tax.
Consolidated statement of cash flows
| (in millions of euros) | 2020 | 2019 | |||
| Profit (loss) from continuing operations | (668) | 218 | |||
| Income tax benefit (expense) | (Note 14) | (31) | 55 | ||
| Finance costs, net | (Note 13) | 150 | 138 | ||
| Profit (loss) before finance costs and tax | (549) | 411 | |||
| Depreciation and amortisation expense | 763 | 811 | |||
| Impairment losses, provision expense and other non-cash items | 148 | 14 | |||
| (Gains) losses on disposals of assets and on leases | (164) | (137) | |||
| Dividends received from equity-accounted companies | 1 | 6 | |||
| (Income) loss from equity-accounted companies | (Note 20) | 58 | (6) | ||
| Changes in working capital | (Note 25) | (21) | 25 | ||
| Cash flow from operating activities | 236 | 1,124 | |||
| Income taxes paid | (38) | (52) | |||
| Net cash from operating activities | (A) | 198 | 1,072 | ||
| Cash used in investing activities | |||||
| - Purchases of intangible assets and property, plant and equipment | (Note 5) | (170) | (215) | ||
| - Purchases of investments | (Notes 4.2 and 5) | (40) | (276) | ||
| - Cash acquired through acquisitions | (Note 5) | 13 | 3 | ||
| - Purchases of other non-current assets | (Note 5) | (9) | (14) | ||
| Total cash used in investing activities | (B) | (206) | (502) | ||
| Cash from investing activities | |||||
| Proceeds from disposals of non-current assets | |||||
| - Disposals of intangible assets and property, plant and equipment | (Note 5) | 1 | 32 | ||
| - Disposals of investments | (Notes 4 and 5) | 104 | 339 | ||
| - Cash transferred on disposals | (Note 5) | (18) | (32) | ||
| Decrease in other non-current assets | (Note 5) | 10 | 9 | ||
| Total cash from investing activities | (C) | 97 | 348 | ||
| Interest received | (D) | 5 | 7 | ||
| Net cash used in investing activities | (F) = (B) + (C) + (D) | (104) | (147) | ||
| Net cash from operating and investing activities | (G) = (A) + (F) | 94 | 925 | ||
| Capital transactions | |||||
| - Minority interests' share in capital increases by subsidiaries | 1 | 5 | |||
| - (Acquisitions) disposals of treasury shares | 5 | (31) | |||
| - (Acquisitions) disposals of minority interests | (12) | (2) | |||
| - Dividends paid to owners of the Parent(*) | - | (172) | |||
| - Dividends paid to minority shareholders of subsidiaries | (13) | (29) | |||
| Total capital transactions | (H) | (19) | (229) | ||
| Financing transactions | |||||
| - Increase in debt | (Note 28.1) | 334 | 836 | ||
| - Decrease in debt | (323) | (573) | |||
| Total movements in debt | (I) | 11 | 263 | ||
| Interest paid | (J) | (64) | (65) | ||
| Decrease in lease liabilities | (Note 18) - (J) | (236) | (518) | ||
| Interest paid on lease liabilities | (Note 18) - (J) | (49) | (77) | ||
| Net cash used in financing activities | (K) = (H) + (I) + (J) | (357) | (626) | ||
| Other movements | |||||
| - Effect on cash of changes in exchange rates | 11 | (5) | |||
| - Effect on cash of other movements | (11) | 13 | |||
| Total other movements | (L) | - | 8 | ||
| Net cash from (used in) discontinued operations(**) | (M) | - | (99) | ||
| Change in cash and cash equivalents | (N) = (G) + (K) + (L) + (M) | (263) | 208 | ||
| Cash and cash equivalents at beginning of year | 868 | 660 | |||
| Cash and cash equivalents at end of year | (Note 25) | 605 | 868 | ||
(*) 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 (IFR 5).
Consolidated balance sheet
| ASSETS (in millions of euros) | 31 Dec. 2020 | 31 Dec. 2019 | |
| Intangible assets | (Note 17) | 975 | 1,135 |
| Goodwill | (Note 16) | 1,461 | 1,564 |
| Right-of-use assets | (Note 18) | 1,939 | 2,859 |
| Property, plant and equipment | (Note 19) | 709 | 811 |
| Investments in equity-accounted companies | (Note 20) | 52 | 73 |
| Other non-current assets | (Note 21) | 212 | 154 |
| Deferred tax assets | (Note 14) | 239 | 210 |
| Total non-current assets | 5,587 | 6,806 | |
| Inventories | (Note 22) | 498 | 631 |
| Trade receivables | (Note 23) | 1,050 | 1,068 |
| Other current assets | (Note 24) | 675 | 717 |
| Cash and cash equivalents | (Note 25) | 687 | 913 |
| Total current assets | 2,910 | 3,329 | |
| Assets held for sale | (Note 4.3) | - | 994 |
| Total assets | 8,497 | 11,129 | |
Consolidated balance sheet
| EQUITY AND LIABILITIES (in millions of euros) | 31 Dec. 2020 | 31 Dec. 2019 | |
| Share capital | 800 | 800 | |
| Share premiums | 4 | 9 | |
| Reserves and retained earnings | 815 | 843 | |
| Profit (loss) for the year attributable to owners of the Parent | (660) | (15) | |
| Other comprehensive income | (234) | (115) | |
| Equity attributable to owners of the Parent | 725 | 1,522 | |
| Minority interests | (Note 26) | 102 | 150 |
| Total equity | 827 | 1,672 | |
| Provisions for pensions and other post-employment benefit obligations | (Note 27) | 108 | 106 |
| Non-current provisions for contingencies and losses | (Note 27) | 174 | 156 |
| Non-current debt | (Note 28) | 1,643 | 1,842 |
| Non-current lease liabilities | (Note 18) | 1,833 | 2,527 |
| Other non-current liabilities | (Note 31) | 45 | 51 |
| Deferred tax liabilities | (Note 14) | 253 | 278 |
| Total non-current liabilities | 4,056 | 4,960 | |
| Current provisions for contingencies and losses | (Note 27) | 168 | 138 |
| Current debt | (Note 28) | 793 | 532 |
| Current lease liabilities | (Note 18) | 413 | 570 |
| Trade payables | 1,042 | 1,249 | |
| Other current liabilities | (Note 31) | 1,198 | 1,215 |
| Total current liabilities | 3,614 | 3,704 | |
| Liabilities associated with assets held for sale | (Note 4.3) | - | 793 |
| Total equity and liabilities | 8,497 | 11,129 | |
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 2018 | 800 | 23 | 1,022 | (81) | (43) | (7) | 1,714 | 154 | 1,868 |
| Profit (loss) for the year | - | - | (15) | - | - | - | (15) | 26 | 11 |
| Other comprehensive income (expense) for the year(a) | - | - | (14) | - | 54 | (25) | 15 | 1 | 16 |
| 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 | - | - | - | (31) | - | - | (31) | - | (31) |
| Share-based payments | - | - | 7 | - | - | - | 7 | - | 7 |
| Effect of transactions with minority interests | - | - | (1) | - | - | - | (1) | - | (1) |
| Changes in scope of consolidation and other | - | - | 10 | - | - | (5) | 5 | (7) | (2) |
| At 31 December 2019 | 800 | 9 | 836 | (97) | 11 | (37) | 1,522 | 150 | 1,672 |
| Profit (loss) for the year | - | - | (660) | - | - | - | (660) | (28) | (688) |
| Other comprehensive income (expense) for the year(a) | - | - | (3) | - | (123) | 8 | (118) | (5) | (123) |
| Total comprehensive income (expense) for the year | - | - | (663) | - | (123) | 8 | (778) | (33) | (811) |
| Dividends paid | - | - | - | - | - | - | - | (13) | (13) |
| Parent company capital increase/reduction(b) | - | (5) | (8) | 13 | - | - | - | - | - |
| Minority interests' share in capital increases | - | - | - | - | - | - | - | 1 | 1 |
| Changes in treasury shares | - | - | - | 5 | - | - | 5 | - | 5 |
| Share-based payments | - | - | 5 | - | - | - | 5 | - | 5 |
| Effect of transactions with minority interests | - | - | (12) | - | - | - | (12) | 12 | - |
| Changes in scope of consolidation and other | - | - | (23) | - | - | 6 | (17) | (15) | (32) |
| At 31 December 2020 | 800 | 4 | 135 | (79) | (112) | (23) | 725 | 102 | 827 |
(a) See note 26 to the consolidated financial statements.
(b) Capital increase carried out by capitalising reserves and capital reduction carried out by cancelling treasury shares.