Lebon : Compagnie Lebon 2019 annual results

PRESS RELEASE

Paris, 31 March 2020 at 6 P.M.

Compagnie Lebon returned to growth in 2019

1. Net asset value of €241.5 millionoValue creation of €16.8 million

1. Net Income group share up €8.0 million1

The 2019 earnings confirm the soundness of the Group's strategy, with a 6.1% increase in its NAV and a sharp

increase in NIGS to €8.0 million (+80%)

The transformation undertaken since 2018 began to bear fruit in 2019, a year marked by the return of growth

and momentum to the real estate and private equity sector

The strategic investments and decisions of previous years are bearing fruit

The results have confirmed the predictions of the roadmap: after a 2018 transition year marked by numerous investments, 2019 was the year in which Compagnie Lebon returned to growth.

This strong growth can be mainly attributed to the Financial Sectorsince it was driven by the Private Equity (Paluel- Marmont) and Real Estate (Paluel-Marmont Valorisation) business lines.

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	At 31 December 2019			2019				Change			2018
	in €million					%	€million
	Net Asset Value (NAV)	241.5		6.1%	13.9		227.9
	Net Income Group Share (NIGS)	8		80.0%	3.5		4.5
	Value creation*	16.8		35.5%	4.4		12.4

*Value creation = NAV changes before distribution for the year

The consolidated financial statements have been fully audited. The certification report is being issued.

"2019 was satisfactory for our Group. The renewed momentum confirms the strategic choices outlined in our roadmap. We achieved the expected results in spite of external events that were unfavourable to our business operations. 2020 is shrouded in uncertainty due to the unprecedented crises that we are facing now ... This situation calls for humility and solidarity. From the viewpoint of the company, we need to be agile; we need the same agility that we demonstrated when confronted with the hazards of 2019. We learned from those events that we had to be capable of adapting to our environment and to unexpected events. Once again, we shall mobilise all of the Group's

• Calculation under IFRS 8. NIGS totalled €7.7 under IFRS

skills to face this challenge" saysBertrand Leclercq, Chairman of the Board of Directors of Compagnie Lebon, in his analysis of the situation.

"2019 has demonstrated again that the Group draws its strength from the complementary nature of our activities. When business operations are affected by the social, health or economic macro situations, financial activities take over to ensure growth and income.

In the light of the serious Covid-19 crisis that we are facing, our priority has shifted to our teams, our partners, our suppliers, generally to all our stakeholders. The entire Compagnie Lebon Board has asked me to forward its warmest thoughts to the Group's customers and shareholders and to their families.

Lastly, we have taken all necessary measures to ensure the permanence of the company and organise business continuity as much as possible. I am convinced that again, it is the complementarity and diversity of our activities that will allow us to manage 2020 as positively as possible", explains Philippe Depoux, Chief Executive Officer of Compagnie Lebon.

Presentation of the financial statements by business sector (IFRS 8)

This year, Compgnie Lebon has chosen to present its financial statements in accordance with IFRS 8 format. This presentation enables direct reading of the different activities as they are managed and provides better insight into the activities through a sector-based approach.

For enhanced legibility, the Group has rearranged its activities around two sectors and four business lines.

• TheFinancial Sectormade up of private equity and real estate.
• TheOperations Sectormade up of Hospitality and Thermal baths as well as the Asset Management activity (management of the registered office and corporate debt).

The Group's growth in 2019 was driven by the financial sector

Private Equity: ramp up confirmed by Paluel-Marmont Capital

In 2019, private equity was very active, which confirms that the company made the right strategic choices for its teams and positioning. The team has increased its presence on the market, has completed significant new investments (SECURINFOR and QUADRILATERE) and benefits from a very dynamic deal flow (109 files under study).

	Private Equity share			2019				Change			2018
	at 31 December 2019					%	€million
	Net Asset Value (NAV)	61.4		37%	16.6		44.8
	Net Income Group Share (NIGS)	3.5		40%	1.0		2.5
	Value creation*	2.8		-7%	-0.2		3

*Value creation = NAV changes before distribution for the year

As such, Private Equity is a very substantial contributor to the Group's 2019 NIGS (44% of the Group's NIGS); it contributes up to €2.8 million to value creation thanks to the revaluation of historic investments.

Real Estate: Paluel-Marmont Valorisation is stable and robust

This year again, real estate has demonstrated its stability and remains a major contributor to NIGS for up to €4.4 million and creation of Group value for up to €6.8 million.

These positive results are underpinned by two factors: dynamic disposals and the revaluation of assets. The most significant sales include, in a very buoyant market context, the sale of an office asset in Lyon Gerland or again the sale of the last housing projects in the Curial development in Paris, 19th arrondissement.There is also a new value creating investment: a mixed-activity building to be redeveloped in Paris 11th, Rue Oberkampf.

The Operations Sector impacted by the global social (hotels)

and sanitary (thermal baths) context

Hospitality: Esprit de France stays on track in a troubled social context

2019 remains a positive year for the hospitality business line with a 3% increase in revenue on a like-for-like basis. Hospitality made a positive contribution to value creation for the Group (€10.4) and its earnings with NIGS of €2.2 million.

	Hospitality share			2019				Change			2018
	At 31 December 2019					%	€million
	Net Asset Value (NAV)	136.1		4%	5.7		130.4
	Net Income Group Share (NIGS)	2.2			NS	2.2		0
	Value creation*	10.4		63%	4		6.4

*Value creation = NAV changes before distribution for the year

These positive results stem from two factors: first, the robust performance of the "historic" hotels which stayed on track despite the social unrest (strikes, yellow jackets), outperforming the competition (increase in REVPAR) and second, the disposal of Hôtel Aiglon; despite the impact of the four hotels opened in 2018, which are gradually ramping up their activity and continue to weigh on earnings.

Thermal baths: 2019 disrupted by bacterial pollution

2019 was a difficult year for thermal activity, heavily impacted by the shutdown of the social security accredited thermal activity of Brides-les-Bains for nearly the entire 2019 thermal season.

	Thermal baths share			2019				Change			2018
	At 31 December 2019					As%	in €million
	Net Asset Value (NAV)	17.9		17%	2.6		15.3
	Net Income Group Share (NIGS)	-2.6		550%	-2.2		-0.4
	Value creation*	-3.1		-875%	-3.5		0.4

*Value creation = NAV changes before distribution for the year

This shutdown, an administrative requirement for sanitary reasons, followed the appearance of bacterial origin pollution in the thermal water distribution system. SET Brides thus recorded losses of €2.2 million (social) net of the activation of the income loss insurance cover.

The entire water distribution network was changed during the inter-seasonal period so as to ensure better command of water quality and the possibility of re-opening for the 2020 thermal season.

The resilience of Brides hotels even though their customer base is nearly exclusively made up of accredited spa guests (loss of revenue limited to 30%) and the performance of the Brides Grand Spa Thermal which achieved its ambitious budget despite the context, helped to limit the poor results generated by the shutdown of accredited spa centres.

With respect to the Allevard Thermal resort, the first post-renovations season saw a 2% jump in activity.

Dividend

Conscious of the unprecedented crisis that we are going through, the Board of Directors and the majority family shareholder believe that no stone should be left unturned in efforts to maintain the know-how of teams and the specificity of Compangie Lebon's assets.

Consequently, the Board of Directors of Compagnie Lebon has unanimously decided to exceptionally propose to the next Shareholders' Meeting not to pay any dividend for the 2019 financial year.

2020 Outlook: numerous uncertainties at this stage and teams ready and prepared for action in the light of the Covid-19 crisis.

Before the emergence of the public health crisis, the Compagnie Lebon roadmap expected 2020 to follow in the steps of 2019, with increased business for hotels, a dynamic takeoff for the thermal activity and a financial sector generating new value creations.

This roadmap will be certainly impacted and arrangements have been made to protect employees, activities and cash flow for upcoming months.

In addition to central actions on postponements of corporate and dedicated debts, rents, taxes, levies and authorised contributions, specific actions are being taken for the business lines.

For the Financial Sector:

• Private Equity: teams are working remotely, equity interests are under analysis and are being closely monitored and new investments have been placed on hold.
• Real Estate: the measures taken are the same as for Private Equity and the team is working on closing the scheduled sales.

For the Operations Sector:

• Esprit de France hotels: all hotels are closed, employees have registered as unemployed for technical reasons, the buildings have been secured and operating expenses reduced to the minimum.Re-opening plans are already being studied.
• Sources d'Equilibre thermal baths business unit: the thermal activity (accredited and spa) has stop as required by the administrative decision, the two Brides hotels are closed and measures have been taken similar to those of Esprit de France hotels.

"The diversity of the Group's activities and their complementarity, but also and most importantly, the commitment of teams and the constant support of shareholders, are all essential for Compgnie Lebon in these troubled times", concludes Philippe Depoux

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About Compagnie Lebon:

Compagnie Lebon is a French company listed on Euronext Paris (compartment B), controlled by the Paluel-Marmont family and active in four complementary business areas: The financial sector consisting of Private Equity with Paluel-Marmont Capital and Real Estate with Paluel-Marmont Valorisation. The operations sector consisting of hospitality activities with the Esprit de France hotels, thermal baths with the Sources d'Equilibre destination spas and hotels, as well as an asset management activity. NAV at 31/12/2019: €241.5 million - 2019 NIGS: €8 million - Workforce: 630 people

Upcoming financial communication events:

Earnings presentation meeting: 2 April 2020 (by video conference in the light of Covid-19).

Annual Shareholders' Meeting: 27 May 2020

Investor and analysts relations

Frédérique Dumousset - Compagnie Lebon - Tel.: [phone] - [e-mail]

Media relations

Karima Doukkali & Aurélie Vinzent

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