Investor Day Presentation

INVESTOR DAY H hachette - LIVRE PRESENTATION 2 HACHETTE INTENDS TO BE A PREMIER LEAGUE COMPETITOR IN THE US TRADE MARKET AS SIZE IS, AND WILL CONTINUE TO BE, A CRITICAL ASSET IN THE FORTHCOMING YEARS IN THIS MARKET Lagardère PUBLISHING The US market is dominated by a few players 2013 top 5 pro-forma market shares on the US Trade print market (in volume) 27.7% Penguin 10.5% 7.5% 5.8% HarperCollins Simon & Schuster Hachette Book Group Random House Harlequin 4.9% Macmillan Penguin-Random House controlling ~28% of the print market US-based technology and e-commerce companies such as Amazon dominating the US digital market Hachette Livre strategy and rationale In this new environment, scale is important: To attract authors (particularly for bestselling authors), acquire valuable licenses and control more worldwide rights To maintain bargaining power in a context of increasing downstream concentration of retailers: sales and profits expected to be preserved for publishers, even improved, as long as tight control is kept on business models To benefit from synergies Hachette Book Group market share is only ~6% Objective to secure HBG's position on this market by reviewing external growth opportunities, be it through creative JVs, synergy-driven small acquisitions Source: Nielsen Bookscan 47

View entire presentation