Ladies and gentlemen, thank you for joining us today to the Lagardère SA first semester 2023 results. I'm Emmanuel Rapin, Head of Financial Communication, I will be guiding you through this presentation. The conference is led today by Arnaud Lagardère, Chairman and Chief Executive Officer of the Lagardère SA, Sophie Stabile, Group CFO, Fabrice Bakhouche, Deputy Chief Executive Officer of Hachette Livre, Dag Rasmussen, Chairman and CEO of Lagardère Travel Retail. After the presentation, we will have a Q&A session. Please click on the Ask a Question tab at the top of right of your screen, I will be reading only questions from financial analysts. Now, I give the floor to Arnaud Lagardère. Thank you so much. Good afternoon, good evening to all of you. I will leave the floor right away to Sophie Stabile, since there's not much to say about those number, other than that they are extremely good, especially on Lagardère Travel Retail. I guess you read it. I think we have good information to give you about this first semester, and we're still very optimistic about the second. Sophie, go ahead. Thank you, Arnaud, good evening to everyone. Today, we are pleased to share with you a solid H1 '23, which saw a steep increase in both revenue and recurring EBIT. The activity was driven by the robust performances of our two main businesses. Lagardère Publishing maintained a high level of revenue, with a 1.6% growth on a like-for-like basis, despite a less dynamic market. Lagardère Travel Retail strongly increased its revenue by 32.4%, also on a like-for-like basis. The branch recurring EBIT is at a historic level of EUR 92,000,000, a performance we will further detail in this presentation. Finally, the group remains in line with its operational efficiency objectives and continues to focus on business development opportunities with significant M&A activity. Let's now have a look at the main group figures. Key groups indicators are all above H1 2019 for the first time since the COVID crisis. Overall, group revenue is strong at EUR 3,700,000,000. The operating margin is up to 3.8% versus 2.7% in 2019, and 3.5% in 2022. The group's free cash flow, excluding changes in working capital, is at EUR 76,000,000. I will comment on this later in this presentation. Moving on to group revenues. Group revenue is up 19% like-for-like versus last year. As you can see on the slide, this is essentially thanks to Lagardère Travel Retail, the red block on the bridge, with an outstanding revenue growth. Scope effect was a positive EUR 87,000,000, which includes the integration of the following acquisition: First, Al Ghurair Dubai in April 2022, Marché International in Germany in February 2023. Costa Coffee Polska in March 2023. Welbeck Publishing in December 2022. Moving on to the detail of Lagardère Publishing's activities. Lagardère Publishing achieved a high level of sales at EUR 1,200,000,000 in H1 2023. This represents a 1.6% like-for-like increase. This performance is mostly driven by, first, the strong activity of the illustrated segment, with good momentum in the tourism segment, as well as the young adult books. Second, the performance is also linked to the growth in general literature with bestseller like Le Suppléant by Prince Harry, Pagny par Florent, and Le Silence de la Colère by Pierre Lemaitre in France. Too Late by Colleen Hoover was also a success in the U.S. and in the U.K. The high level of sales was also boosted by social media trends and the exposure of authors on social networks, such as TikTok. For example, the novel Fourth Wing by Rebecca Yarros benefited from strong online engagement. Moving on to slide 10. In H1 2023, the activity varied from one geography to another. The activity was robust in France, up by 7%, mainly due to the performance of illustrated book and general literature. In the U.K., we observed a strong like-for-like growth of +7.3%, driven by the young adult segment and the dynamic release of scheduling. The U.S. was down by 8.6% like-for-like, after an excellent H1 2022, due to a softer release calendar and the lack of top-selling reference this semester. Finally, Spain and Latin America benefited from a rise of the education segment, with a cycle of school reforms in Spain for primary education. Let's have a look at profitability on the next slide. Lagardère Publishing's profitability reached EUR 65,000,000. The margin level at 5.2% improved significantly versus pre-COVID figures. Profitability remained at a very high level, despite being impacted by some inflation and specific transformation expenses. The slowdown of the activity in the U.S. was partially compensated by a specific focus on operational costs. Moving on to Lagardère Publishing free cash flow. On this slide, it is relevant to note that Lagardère Publishing's free cash flow before changes in working capital remains stable compared to H1 2022 level at EUR 3,000,000. Despite a lower cash flow from operations before changes in working capital, the income taxes paid was lighter, as well as the level of investment in H1 2023 versus last year. Moving on Lagardère Travel Retail. H1 2023 was a remarkable semester for Lagardère Travel Retail at EUR 2,300,000,000 of revenue. This represents a tremendous 32.4% increase on a like-for-like basis compared to last year. During the semester, we keep performing well, thanks to our favorable geographic footprint and foothold in the EMEA region, North America, and Asia. My geography have showed revenue equal or above 2019 levels. Besides the resumption of air traffic recovery, I would like to highlight the hard work of the team, the commercial initiative and operational efficiency efforts were once again outstanding. Let's deep dive in the division revenue. The activity was driven by a rebound in duty free and food services, thanks to a sharp activity in Northern America and the EMEA region. Food services also increased its share in the mix due to the latest M&A integration. Also, the strong growth in international traffic had a positive effect on our duty-free and fashion, who share in our revenue gradually increased from 37% in H1 2022 to 39%. If we look at China, we note that the domestic market has gradually returned to 2019 level. However, international flights in China are only progressively recovering. We may keep following this trend. Let's now focus on profitability. In H1 2023, recurring EBIT stand at EUR 92,000,000, having more than tripled compared to last year. Profitability, high point of 4% was achieved due combination of several factors. First, improved activity across all geographies. Second, improved efficiency, thanks to the lead performance program in line with targets, and temporary favorable price elasticity in the context of inflation. Last, remaining one of subsidies in the U.S. due to the COVID crisis. Moving on to Lagardère Travel Retail free cash flow. Free cash flow before changes in working capital, reached EUR 86,000,000, versus positive EUR 43,000,000 in H1 2022, meaning it's double. This is a remarkable improvement, mainly due to the travel recovery in airports. With CapEx of EUR 71,000,000 this semester, we significantly increased our investments to meet airport expectations and our commitment towards them. These investments are also materialized through the EUR 147,000,000 we spent in key M&A projects this semester, including Extime Duty Free Paris and Marché International in Germany. Let's move on to other activities. Revenue for the last six months amounted to EUR 125,000,000, up 2.5% on a like-for-like basis. A few points to be highlighted. First, positive performance of Lagardère Live Entertainment, with the new powering after the health crisis and the lifting of sanitary restrictions. Second, the press activity is down by 5.1%. The radio revenue is down by 8.5% due to softer audience circulation and the decrease of advertising revenue. The performance of ELLE International licenses is up by 4.6%. Let's move on to group detailed figures. Adjusted profit group share, which is a positive EUR 24,000,000, is stable compared to last year. This is mainly driven by the EUR 141,000,000 recurring EBIT increase. The big change in the group share, now positive at EUR 45,000,000, is mainly generated by a one-off IFRS 16 competition adjustment. We switched from a fixed lease to a variable lease. Moving on to group cash flow statement. On this document, we can see three key items. First, the cash flow from operation before changes in working capital, going from EUR 144,000,000 - EUR 207,000,000, thanks to the strong recovery in Lagardère Travel Retail's activity. Second, our CapEx increase, showing our commitment to the future of the business through investment. Third, as a further sign of this investment dynamic, our M&A acquisition stable. The seasonal variation of working capital and the dividend paid in May 2023 explain the change in the net debt level. The group's liquidity position is solid at EUR 1,100,000,000 The amount is in line with our active and prudent financial strategy. In June 2023, the SAF was extended until April 2025, for a total of EUR 982,000,000. Net debt is up to EUR 2,200,000,000 compared to EUR 1,700,000,000 at the end of 2022, due notably to the significant M&A activity and the dividend payout. It should be noted that the leverage ratio remained below the first semester of 2022. It's also below the 3.5x multiple, highlighting Lagardère's financial discipline. Moving on to the shareholder structure. A few words on the group ownership. On the 9th June 2023, the European Commission adopted the decision authorizing Vivendi to acquire control of Lagardère S.A. This authorization is subject to the fulfillment of two conditions proposed by Vivendi. Firstly, the sale of 100% of the capital of ADP, secondly, the sale of Gala Magazine. On these sales are approved by the European Commission, Vivendi will have the voting rights attached to the shares it acquired. For the full year 2023, despite the uncertain economic environment, we remain confident in our ability to maintain a high level of result, thanks to the dynamism and responsiveness of the team. Despite pressures on costs, Lagardère Publishing should maintain relatively similar performances to last year. In a normalized environment, as global traffic continue to recover, Lagardère Travel Retail has potential for revenue and profitability growth, meeting LEAP initiatives. Many thanks for your attention. We are available to answer your questions. I have a few questions. I received the first one from Julien Roch, Barclays. First question is about the travel retail. What are the Q3 trends in terms of revenue versus 2019? Could you please also comment about the activity in the Q2 versus 2019? For publishing, what are the summer trends, plus any significant releases in the autumn? The third question is more about the strike on the JDD. La Tribune said that's costing EUR 500,000 a week. Is that true? Why do we have such a strike, and how is it changing? Should I start? Yes, Dag, please. Hello, Julia. The trend in travel retail Q1 was like +13% versus 2019, April was 18%, May was 18%, and June was 25%, which gives an average of 20% for Q2, and 17% for H1. Given the initial trends for Q3, we would expect something between 18% and 20-ish% versus 2019. I think it's Fabrice. Hi, Julia. Regarding publishing, a couple of notes for this summer and the autumn. We have for the summer, we have a strong curriculum reform in Spain. We are doing reasonably well, and we will probably gain market shares, which is good news. Regarding the autumn, we have a relatively strong publishing schedule in France, with a new Asterix in October, as you probably know, plus Britney Spears' memoir, which will be published by La Terre, and a new book by Robert Galbraith in the U.K. and in the U.S. Versus last year in the U.K. and in the U.S., we won't have obviously the fantastic boost we received from Colleen Hoover in the second half of 2022. It had to be, of course, balanced versus this phenomenal boost in our revenues in the U.K. in 2020. I'm reasonably confident regarding H2 of 2023 for the good business. about the Journal du Dimanche, would Arnaud Lagardère Yeah, yeah. Okay. Absolutely. Absolutely. Why is there a strike, and how much does it cost? Why is there a strike is because the journalist of the newspaper did not accept the fact that the shareholder named Geoffroy Lejeune as a new head of the JDD for reasons that I think that a lot of people think that are totally untrue. That's the main reason. They also want to have a what we call a charte d'éthique, which means the ability for the journalists to be part of a vote, naming the rédacteur en chef, the head of the journal, which we think is not in respect of the law. We also rejected that. We opened what we call in France a guichet, which means the ability of the journalists that do not agree with those decisions to leave the company with a package which is way above what the French law would permit them to have. As far as the cost is concerned, you mentioned a number from La Tribune. It's difficult to give exactly a right number per week since there are weeks, once a month, that where we publish le JDD magazine, which is it has a cost attached to that. It's really difficult to say. We are calculating the impact that we would have worst case for the JDD, for Lagardère News, and the whole company. I would say that as of today, it will not change the budget that we have and that we presented last year in December earlier in the December, by the way, and that it will not change the course financially speaking. Maybe a slight impact in terms of cash if the journalists accept to leave the company at a certain cost. I would like to remind you also that once Vivendi will have control of Lagardère, which we think would be around October or November. I don't know exactly when, but, you know, around those dates, then at that time, they will have all the journalists of the group. Whether it's from JDD or Match, will have the ability to leave the company with a certain package. Whether they do it now or little later, would not change the whole picture. Again, it will not change the budget and the forecast that we have and the guidance that we gave to you. This is pretty much what we can say about JDD. Another question? Thank you, Arnaud. I think the questions Adrien de Saint-Hilaire from Bank of America sent us, they are quite recouping with Julien Roch. We have some questions from Christophe Cherblanc, Société Générale. I will start maybe the one from book publishing and how do you see your ability to raise book price, and what is possible to do in all regions? Yeah, it's a good question. Mostly because volumes are going down in all our geographies. We had no choice than increasing prices to stabilize our inflation and protect the margin. We did that pretty aggressively in France, with something around 8%-9% price increase, which was feasible with us because the prices did not go up, haven't gone up for almost 20 years in the French book market. Second, because some of our books did not react negatively to the price increase. In France, a rather aggressive pricing policy. In the UK, we increased by something around 4%, which is relatively aggressive, and now we are the highest average price point in the UK, in paperback and hardback. In the end point in the UK. In the US, we were more cautious, so we are already high, so I don't think there are potential pricing in the US regarding that shipping. A very, very different pricing policy between regions and geographies. Aggressive in France, relatively aggressive in the UK, and neutral in the US. Thank you, guys. So Christophe Cherblanc had some questions about travel retail. If I may rephrase that, the first question was about subsidies. How is it possible to have some subsidies in the U.S.? The second one is, how do you see the recovery of travel retail in Asia in 2022? Okay, why we get subsidies, it's because it's subsidies which were gained, quote, unquote, "last year," and which has been offset by rent aggressively. That's why we still have them. It's always uncertain because there can be changes in the allocation at any time. What we have, first half is $50,000,000, which is EUR 14,000,000, which we mentioned. We think we could get $7,000,000 more during half two in dollars. Again, this can change depending on what airports it would come to. That's basically the question. Asia is still a difficult region for us. We do not disclose results by region, so I would not say whether we reach very significant or not, but it's a very difficult region. The US is booming. Europe is doing very well. South America, Africa, Middle East. All regions are good. The Pacific is picking up. Asia is a bit flat. Again, about. There is 1 question about Simon & Schuster, wondering if the group was participating to the sale process, and what is our assumption on that topic? Well, I will answer to that, Fabrice. We cannot say anything about this since that we agreed to with the seller and the investment bank not to communicate whatever we do or we don't. There's not much we can say about that. Okay, thank you, Arnaud. Most probably for Sophie, there are some questions about some financial items. The first one is, what was roughly the amount of special funding cost that was charged at the corporate level? The second one is, what do you think you will end up in December of 23 in terms of net debt, since we are starting with a high point at the end of 30th of June? Last question is more on, would you have an idea about the financial cost effect, about the change of control, would it change the charge, the financial charges? On the first question, on the funding cost is around EUR 4,000,000. In terms of leverage, it's true that we reach a peak at the end of June 2023, mainly due to the investment and dividend. As you know, we have a strong seasonality. All the time, the second part of the year, we have the business is stronger, so the cash flow is better on the second part of the year. We expect by the end of the year to have a leverage around 3 without any acquisition. The last. Question about financial charges. Financial charges. We increase also, we expected, we expect on that, on that part, that the range will increase by 2%, mainly due to the fact that our convertible bond was at a very low level. We have to support the increase of the cost of the debt. Thank you, Sophie. There is one more question from this Sami Kettab from Exane. The question is for Dag, I guess, because we are speaking about the new joint venture with ADP. The question is, how could you describe the term of this joint venture? Hi, Sammy. First, guess you remember that the JD we have with ADP is not consolidated. We don't see directly the results. Answering to the question, the terms are different. They're more favorable to Paris Aéroport, which means we pay more rent than we used to. It's also with a better commercial tool, with a product mix, which is favorable, with new stores, great stores in terms of the brewery, in terms of souvenirs with Arc'teryx. The offer is different. Basically, what we do is we grow the pie, then we give a larger share to Paris Aéroport, but we're very happy with it. Okay, I'm monitoring the list. In fact, I must repeat that I will raise only the questions from the financial analysts that follow the equity shares. I guess, we covered a lot of the points and, in fact, I think we are good. Maybe, Arnaud, if you want to just say the final words. Well, you know, the numbers speak for themselves. I think that's the only conclusion that we should that we should have. Again, I would like to really congratulate all the teams that are present in this call, whether it's Fabrice Bakhouche, whether it's Dag Rasmussen and his team. We've done a wonderful rebound. I remember us talking to you guys, like, 2 years ago, it was a different speech and different forecast. Now we feel that we really are in a very, very good shape and ready to grow organically or through acquisitions. In addition to that, you know, the fact that we have a very calm governance in the group, and shareholders that are supporting the management helps us tremendously also. Thank you so much for your attention, we'll speak, I guess, very soon. Thank you so much!