Investor Day Presentation

INVESTOR DAY - H hachette LIVRE PRESENTATION THE PENETRATION OF DIGITAL ON PUBLISHING MARKETS IN THE USA AND THE UK HAS POSITIVE IMPACT Trade market evolution 2011-2013 (net publisher revenues, in $bn for the USA and £bn for the UK) 2011-2013 Print Digital CAGR +4% +3% 13.6 13.5 1.3 1.3 12.5 1.2 22% 22% 17% 16% 8% (21% 84% 78% 78% 92 % 83% 79% 2011 2012 2013E 2011 2012 2013 Lagardère PUBLISHING Financial impacts Once the investment phase is over, digital modifies the cost structure of a publisher (example: decrease of print volumes) The across all formats slightly better incremental profitability of ebooks offsets the loss of contribution to fixed costs (distribution, sales forces) resulting from decline of print volumes Cash flow improvement, lower upfront investments in working capital and shorter payment terms Sources: Bookstats (Trade market excluding religion), internal estimates, The Publishers Association (home sales only for print) 19

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