Investor Day Presentation

INVESTOR DAY H hachette - LIVRE PRESENTATION HACHETTE UK IS A LEADING PLAYER IN THE UK AND COMMONWEALTH COUNTRIES Lagardère PUBLISHING UK SPLIT OF 2013 SALES BY BUSINESS 5% Distribution Education 8% CONTRIBUTION TO 2013 GLOBAL SALES* 21% (€ 2,066m) Including Ireland, India and Australia 87% Trade 3 BUSINESSES IN THE UK 2013 ranking and market share in value Focus on the UK TRADE EDUCATION 12.8% #2 #4 Main segments of presence and examples of imprints Fiction & Non Fiction headline little, brown publishing group Illustrated ⚫ Children HOG BOOK GROUP HODDER & STOUGHTON ORION PUBLISHING GROUP hachette CHILDREN'S BOOKS О OCTORES TUBLILBING GROUT HODDER EDUCATION DYNAMIC LEARNING Create outstanding lessons GALORE- PARK Secondary Schools Market: #3 on this segment Key business factors All authors have agents Most unregulated market High retail concentration Outstanding performances in 2013: 112 Times bestsellers Need for size Extremely concentrated More digital than France but only~10% Strong performance in 2013 (curriculum change in Scotland) DISTRIBUTION O 1 B S -23-24% Owned imprints # 1 Bookpoint • Third-party clients: 41% of activity *Sales by country of origin Sources: Nielsen Bookscan (physical sales only); Education group of Publisher's Association; The Publishers Association; internal estimates Working capital negative Less profitable than France and US 60

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