Investor Day Presentation

INVESTOR DAY H hachette - PRESENTATION LIVRE HACHETTE LIVRE WILL HAVE TO FOLLOW THE INDUSTRY CONSOLIDATION THAT HAS BEEN INITIATED BY LARGE ANGLO-SAXON PLAYERS Lagardère PUBLISHING Joint venture between Penguin and Random House announced in October 2012 and completed in July 2013, creating a giant competitor especially in the US and the UK: Combined sales of ~€3bn ~28% market share in the USA and ~24% in the UK 15K publications per year, 250 imprints, 70 Nobel prizes as authors News Corp (HarperCollins) announced in May 2014 the acquisition of Harlequin Consolidation provides: Back-office synergies - Higher attractiveness for valuable licenses - Digital development synergies Improved market share and reinforcement of the bargaining power with respect to e-retailers seeking to force publishers to adjust commercial strategy for ebooks Publishers need size and muscle in order to keep control over relations with authors, over pricing and distribution Large US players share Hachette Livre strategic analysis that size is and will remain key Sources: press; Nielsen Bookscan (print volumes for the US market share and print value for the UK market share) 40 40

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