Investor Day Presentation

INVESTOR DAY - H hachette PRESENTATION LIVRE PUBLISHERS ARE NOW DEALING WITH GIANT TECHNOLOGY PLAYERS WHO ENJOY CONSIDERABLE BARGAINING POWER E-retailers on the digital market are highly concentrated, with Amazon dominant Breakdown of Hachette Livre digital sales by e-retailers in 2013 Lagardère PUBLISHING 8% 13% Amazon Barnes & Noble ■Apple 19% 60% Others (Kobo, Google, Sony,...) 5% 5% 12% Amazon Apple Kobo Others 78% (Google, OverDrive, Nook,...) Google TH ■ A new kind of player, US-based or international technology and e-commerce companies, have entered the publishing arena with a different economic rationale from traditional retailers amazon SAMSUNG Book Search Digitization of contents Kindle's success thanks to ebooks pricing at 9.99$ Launch of the Ipad Launch of Samsung Galaxy 2004 2009 2010 2012 By leveraging its size, Hachette was able to implement balanced solutions with Google, Amazon, Apple: the agency model allowed new entrants without impacting the market dynamics Source: Hachette Livre data 20 20

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