Investor Day Presentation

INVESTOR DAY H hachette - LIVRE PRESENTATION SINCE 2007, PROACTIVE ACTIONS HAVE BEEN TAKEN TO SUCCEED IN THE DIGITAL TRANSITION AND PRESERVE MARKET VALUE (2/2) Fostering competition among e-retail partners Lagardère PUBLISHING Supporting competition among e-retailers to avoid dominant position in the value chain: development of a large network of clients composed of both international and local clients (Amazon, Apple, Kobo as well as Cultura, Fnac, independent French bookstores through Numilog partnership...) Control over business models Agreement with Google for out-of-print books Agreement with authors on a "new publishing contract” in France Agency model implemented with e-retailers thanks to Hachette Livre's size and Anglo- Saxon presence in order to retain control over ebook pricing Cautious approach towards new business models Adequate protection mechanisms Use of adequate protection mechanisms (DRM) with interoperable formats (Epub) which are user-friendly Active search of illegal contents through anti-piracy tools limiting the proliferation of illegal copies Publishing benefits from consumer awareness regarding fraudulent nature of file sharing and the existing legal frameworks against piracy Participation of Hachette Livre in development on interoperability and standard norms (IPDF, W3C) 26

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