GL events : maintains positive momentum in h1 2023 and raises its full-year growth target

GL EVENTS (FR0000066672, GLO), THE INTEGRATED EVENT INDUSTRY GROUP, ANNOUNCES ITS H1 2023 RESULTS.

• H1 2023 revenue: €690m, +32 %
• EBITDA1 : €100m (14.4% as a percentage of revenue)
• Net profit attributable to Group shareholders: +88%
• FY 2023 growth target raised from 5% to 8%

GL events' Board of Directors, meeting on 20 July 2023, approved the interim financial statements for the six-month period ending 30 June 2023. Audit procedures have been completed and the statutory auditors' report is in the process of being issued.

"GL events' strong momentum remains on track with revenue up 32% in the first half, driven by its strategy of combining the strengths of its three business divisions to provide an integrated offering: Live, Venues and Exhibitions. In recognition of its expertise, in June GL events was selected to provide overlay services for the 2024 Olympic and Paralympic Games venues in the heart of Paris, from the Champ de Mars to the Place de la Concorde, and throughout France in the stadiums of Bordeaux,Lille, Lyon, Marseille, Nantes, Nice and Saint-Etienne.

Meanwhile, as we expected, all our markets are returning to growth, in particular China, which enjoyed a very robust second quarter, and the Americas, with particularly good performances inBrazil and Chile.

1 Definition provided at the end of the press release.

Our commercial efficiencies in all our markets provided the basis for good operating results, withEBITDA up 56% and operating profit up 94%, creating additional value for our shareholders.

This good first-half performance has allowed us to raise our target for growth in sales from 5% to 8%in 2023. In response, our operating margin will also continue to improve. We are accelerating the pace of our investments in the future while maintaining our objectives to reduce gross debt.

Looking to the future, GL events continues to invent sustainable worlds for the event industry, reflecting the ambitious ESG policy underpinning its strategy and commitments. During the period, the Group was granted the building permit, enabling it to begin installing a 13-hectare photovoltaic shading structure on the Eurexpo site in Lyon. For these reasons, I confirm my confidence in our Group and am particularly proud of the progress and advances made by our teams in France andaround the world in the first half of 2023. "

All regions where the Group operates displayed good momentum in the first half. For the six month period ended 30 June 2023, GL events' revenue grew 32% (29% LFL1) to €690.2m, driven in particular by the strong rebound in Exhibitions and the business upturn in China beginning in the second quarter.

In H1 2023, the Group's EBITDA margin rose to 14.4%, mainly in response to:

• Strong growth in EBITDA of 56% to €100m in H1 2023 compared with €64m in H1 2022;
• A sharp rebound in business in China in the second quarter and continuing strong momentum in France and the Americas;
• Significant growth in profitability by the Venues and Exhibitions divisions.

After taking into account other operating income and expenses representing a charge of €3m, net financial expenses of €10.0m (-€18m under full IFRS) and a tax charge of €14m, net profit attributable to the Group amounted to €32m (€30m under full IFRS), up 88% from H1 2022 (€17m, €15m under full IFRS) thus resulting in a net margin of 4.6%.

EPS for H1 2023 on that basis rose 88% to €1.05.

GL events and all its employees are actively engaged each and every day in building a fairer and more sustainable events industry. GL events' ESG policy is continuing to meet its key long-term objectives by reducing energy consumption and the use of consumables by 25% in relation to 2019.

1 Definition provided at the end of the press release.

GL EVENTS LIVE registered strong growth in H1 2023. This performance reflected the contributions of major contracts in a wide range of sectors, but also global events, especially in sports, with the Roland Garros French Tennis Open and the Monte Carlo Rolex Tennis Masters tournament, motor racing with the Monaco Formula 1 Grand Prix and the 24 Hours of Le Mans Auto, and equestrian sports with the Saut Hermès international jumping show. The first half also benefited from the return of major international events such as the Cannes Film Festival and the Paris Air Show, at also corporate events, like the Dassault Systèmes Business Convention and the Christian Dior Homme & Haute Couture fashion shows. GL events Live's revenue rose 22 % to €367.3m, an increase of 18 % LFL1.

This division, which displayed the most resilience during the COVID-19 crisis, recorded growth in EBITDA1 of 16% to €33.9m compared with 2023, whereas the EBITDA margin declined by 40 basis points to 9.2%. At the same time, current operating income declined 13% to €9.7m, resulting in a current operating margin of 2.6%. This contraction in the operating profitability in H1 was the result of lower margins in France (structures and services), very low margins for mega events and higher fixed costs. GL events Live is expecting its margins to improve in H2 2023 after adopting a plan for implementing higher sales prices and optimizing fixed costs.

GL EVENTS EXHIBITIONS delivered an excellent performance, with revenue nearly doubling to €143.6m, up 97% on a reported basis and LFL1. The division has benefited from a favourable biennial effect (SIRHA, Expomin) and strong momentum by B2B exhibitions like Hyvolution, Be Positive, CFIA and Global Industrie in France. It also benefited from the rebound in activity in China in Q2, in particular with the 19th China Association of Clinical Laboratory Practice Expo (CACLP) and ISH

1 Definition provided at the end of the press release.

Beijing. While some of the Group's exhibitions are recovering more slowly, reflecting difficulties experienced in certain industry sectors (fashion in Europe, construction in China), it is deploying the human and marketing resources needed to take advantage of the rebound.

The division's profitability rose significantly, with EBITDA1 reaching €33.1m, up from €9.2m in H1 2022, while its EBITDA margin increased from 12.7% to 23%. The current operating margin reached 23.1%, driven notably by the recovery in China, a favourable biennial effect, the success of B2B exhibitions, and tight controls over fixed costs.

By acquiring a 51% stake in Première Vision in H1, GL events Exhibitions became the sole shareholder in the world's leaving exhibition for the upstream*** fashion industry.

GL EVENTS VENUES continued to perform well with revenue of €179.2m, up 19% in the same period in 2022 and 20% LFL.1. After gradually returning to its pre-pandemic level, the division's positive momentum, combining growth in revenue and profitability, remains on track. On that basis, GL events Venues' EBITDA1 grew 28% to €32.6m while its current operating margin gained 320 basis points from H1 2022. Profitability has also improved for the Venues division which benefits from contributions of major destinations (Sao Paulo, Rio de Janeiro, Paris, Lyon and Budapest), optimised management of increased energy costs and tight control over personnel costs.

On June 30, 2023, in line with its ambitious investment plan and with net sources of funds at a low point (consumption of exhibition deposits for H1 2023), GL events generated operating cash flow of €27m. After taking into account acquisitions (€63m), debt servicing and dividend payments, GL events' net debt rose in the period by €68m to €560m. At June 30, 2023, GL events had a cash position of €577m (€637m including undrawn credit lines). After adjusting for acquisitions during the period, the Group's net debt (€484m) remained largely stable in relation to December 31, 2022 (€492m).

At the same time, GL events continued to successfully refinance and extend the maturity of its debt which was thus increased to 3.7 years. A number of major refinancing operations were completed by GL events since the beginning of the year. On this basis, the Group today announces the refinancing of a €60m Euro PP (including €26m with a 7-year maturity and €34m with an 8-year maturity), in addition to bank refinancing of €70m and the renewal of a €150m revolving credit facility (RCF) completed in H1 2023.

1 Definition provided at the end of the press release.