2015 First-Half Results. July 30, 2015

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2 Certain statements contained in this document are forward-looking statements (including objectives and trends), which address our vision of the financial condition, results of operations, strategy, expected future business and financial performance of Lagardère SCA. These data do not represent forecasts within the meaning of European Regulation No. 809/2004. Disclaimer When used in this document, words such as anticipate, believe, estimate, expect, may, intend, predict, hope, can, will, should, is designed to, with the intent, potential, plan and other words of similar import are intended to identify forward-looking statements. Such statements include, without limitation, projections for improvements in process and operations, revenues and operating margin growth, cash flow, performance, new products and services, current and future markets for products and services and other trend projections as well as new business opportunities. Although Lagardère SCA believes that the expectation reflected in such forward-looking statements are reasonable, such statements are not guarantees of future performance. Actual results may differ materially from the forwardlooking statements as a result of a number of risks and uncertainties, many of which are outside our control, including without limitations: general economic conditions, including in particular growth in Europe and North America; legal, regulatory, financial and governmental risks related to the businesses; certain risks related to the media industry (including, without limitation, technological risks); the cyclical nature of some of the businesses. Please refer to the most recent Reference Document (Document de référence) filed by Lagardère SCA with the French Autorité des marchés financiers for additional information in relation to such factors, risks and uncertainties. Accordingly, we caution you against relying on forward-looking statements. The forward-looking statements abovementioned are made as of the date of this document and neither Lagardère SCA nor any of its subsidiaries undertake any obligation to update or review such forward-looking statements whether as a result of new information, future events or otherwise. Consequently neither Lagardère SCA nor any of its subsidiaries are liable for any consequences that could result from the use of any of the above statements. 2

3 Key Group figures pages 4 to 6 Contents Performance by division pages 7 to 17 Group financial results pages 18 to 25 Appendices to consolidated accounts pages 26 to 38 Significant events pages 39 to 63 3

4 Key Group figures

5 Lagardère Publishing Acquisition of UK book publisher Rising Stars. Full consolidation starting January 1, Changes of scope: main items Lagardère Active Acquisition of the Spanish group of TV production Boomerang TV. Full consolidation starting May 28, Lagardère Travel Retail Disposal of Swiss Distribution activity (Press Distribution and Integrated Retail, 180 stores), as of February 27, Disposal of Curtis Circulation Company, a US national distributor of magazines, on June 26, Acquisition of 17 retail stores (fashion and confectionary) at JFK airport on April 21,

6 ( m) H restated* H Reported change Like-for-like change** Sales 3,364 3, % +2.9% Recurring EBIT of fully consolidated companies*** % / Key figures Group Group operating margin 3.3% 3.7% +0.4 pt / Profit Group share (35) m / Adjusted profit Group share m / Cash (used)/generated by operating activities (126) m / Net debt at end of the period (954) (1,436) + 482m / Sales: a negative perimeter of - 277m, and a positive currency effect of 130m. *Including the negative impact related to the retrospective application of IFRIC 21 Levies on H figures: - 3m on Recurring EBIT of fully consolidated companies. - 2m on Profit Group share and Adjusted profit Group share. The new interpretation IFRIC 21 modifies the obligating event that gives rise to the recognition of a liability to pay a levy or contribution. The obligating event for the recognition of the liability is now the activity that triggers the payment of the levy, as defined by the tax authorities. **At constant perimeter and exchange rates. ***See definition slide 38. 6

7 Performance by division

8 H sales by geographical area H sales by activity Lagardère Publishing: activity Other 18% 20%* Spain 5% 5%* US & Canada 26% France 28% 30%* UK & Australia 23% 20%* Partworks 12% 14%* 25%* 42%* *% of sales in H Other 17% 17%* General Literature 43% H sales: 968m (+7.1% reported and -2.9% like-for-like). Education 13% 13%* Illustrated Books 15% 14%* A positive perimeter of + 20m, and a positive currency effect of 70m. All comments below are based on like-for-like figures. The decrease is mostly due to a weak H in the US (negative comparison effect with a strong H1 2014), which is not offset by the good performance in France. In France, a significant growth (+3%) thanks to a solid activity in General Literature, with both new releases and paperback segment (Fifty Shades), in addition to Illustrated Books, especially coloring books. In the US, activity contracted (-7.8%) mostly because of e-books; H benefited from a strong best-seller offering (including The Goldfinch by D.Tartt and The Silkworm by R. Galbraith). In the UK, the decrease in activity (-3.5%) is due primarily to the change in VAT rate, and to a soft performance in Trade. Activity is also slightly down in Spain and Latin America (-3.8%), with some delays in education sales. The decrease in Partworks (-3.4%) was a result of a negative comparison effect with a buoyant H

9 As expected, the weight of e-books has decreased: e-books accounted for 10.7% of sales in H vs. 11.3% in H Digital for the time being remains essentially limited to the traditional fiction/non-fiction segment, in the US and UK markets, with similar market trends: Lagardère Publishing: focus on e-book in the US, in a decreasing market (which confirms the slowdown noticed since H1 2014), Lagardère Publishing digital sales accounted for 24% of Trade sales in H It reflects market trend, fewer movie tie-ins vs. H1 2014, and the impact of the agreement with Amazon; in the UK, where the market is stabilising, e-book sales decreased due to a less intensive new release schedule and to a change in VAT rate. E-books accounted for 33% of Adult trade sales; French and Spanish markets still at an early stage. E-book share as percentage of trade market sales United States* United Kingdom** Lagardère Publishing e-book sales % of total sales 30% 29% 21% 24% 26% 24% 20% 27% 36% 31% 33% 6.0% 8.0% 11.3% 10.4% 10.3% 10.7% 8% 1% 10% 2.0% H *Trade. / **Adult trade. H H H H H

10 Lagardère Publishing: profitability ( m) H restated* H Change Sales (a) % Recurring EBIT of fully consolidated companies (b) m Operating margin (b)/(a) 5.5% 3.7% -1.8 pt Income (loss) from equity-accounted companies 1 0-1m Non-recurring/non-operating items (5) (8) - 3m EBIT m H profitability Profitability trend is mainly attributable to the decrease of activity (for the most part in the US, and in the UK), partly offset by the good performance in France. Non-recurring and non-operating items comprise mainly restructuring charges. *Includes impact of IFRIC 21 see slide 6. 10

11 Lagardère Travel Retail: activity H sales by geographical area Western Europe 12% 16%* Eastern Europe 17% 17%* Italy 8% 4%* Spain 10% 9%* US & Canada 7% 6%* Belgium 13% 12%* Asia & Australia 10% 8%* France 23% 28%* Distribution (Wholesale Distribution & Integrated Retail) 30% 37%* H sales by activity Travel Retail 70% 63%* H sales: 1,640m (-11.4% reported and +3.5% like-for-like). A negative perimeter of - 306m, and a positive currency effect of 42m. All comments below are based on like-for-like figures. The Travel Retail market environment was marked by an improvement in air traffic, showing solid growth in all regions. The development strategy of the division bore fruits with the continued momentum in Travel Retail, which grew strongly (+7.3%). See details next page. Distribution is down -4.0%, as the continued downturn of the press market is not yet fully compensated by diversification initiatives. *% of sales in H

12 Lagardère Travel Retail: focus on Travel Retail The growth strategy of Lagardère Travel Retail is bearing fruits. All comments below are based on like-for-like figures. A strong growth of Travel Retail activity (+7.3% like-for-like) on almost all markets, with a slight acceleration in Q2 (+7.8%), fuelled by improving traffic trends, the good performance of acquisitions and commercial initiatives (new Relay and Aelia concepts). - In France, a sharp growth (+8.7%) driven by Duty Free (increase in traffic and Spend Per Passenger (SPP), in addition to good performance of regional airports), Travel Essentials and Foodservice (network development). - In the rest of Europe, activity is up (+7.9%), especially in Poland (+11.8%), Italy (+7.3%) with the ramping up of Rome airport (+13.9%, despite the fire which occurred in May), Romania (+15.5%), and Spain (+10.6%). - The robust increase in North America (+5.7%) is driven by network increase and sustained underlying activity. - Asia-Pacific is up (+3.2%) with strong sales in Asia (+9.8%) fueled by the fashion activities in China and Singapore. Commercial activity was successful with several bids won and successful renewals: New Zealand (Auckland), UK (Luton), Poland (Warsaw and Krakow), Canada (Toronto), China (Kunming) Improving passenger traffic trends*: Worldwide Europe North America Asia-Pacific +5.8% +4.9%** +4.8% +5.2%** +3.9% +3.2%** +8.7%*** +5.4%** *At the end of April 2015, year-on-year increase. Source: ACI. / **Full-Year / ***Traffic is recovering after the plane crashes and the economic slowdown. 12

13 Lagardère Travel Retail: profitability ( m) H restated* H Change Sales (a) 1,852 1, % Recurring EBIT of fully consolidated companies (b) m Operating margin (b)/(a) 1.9% 1.8% -0.1 pt Income (loss) from equity-accounted companies 3 2-1m Non-recurring/non-operating items (24) (10) + 14m EBIT m H profitability Impact of the disposal of the Swiss and US Distribution activities: - 4m. Increase in Travel Retail of + 3m: rise in margin thanks to an improving product mix, the gain of new contracts and the successful development of new concepts. Negative impact of the consolidation of Airest (weaker profitability in the 1 st quarter): - 3m. Decrease in Distribution: - 1m. Non-recurring and non-operating items comprise mainly amortisation of intangible assets (due to recent acquisitions) and restructuring costs (in Distribution), which are partly compensated by the net capital gains on the Distribution assets sold during the 1 st half 2015 (in Switzerland and in the US). *Includes impact of IFRIC 21 see slide 6. 13

14 H sales by geographical area International 17% 14%* H sales by activity Radio 22% 23%* Lagardère Active: activity France 83% 86%* TV 28% 17%* Pure Digital 6% 8%* Press 44% 52%* H sales: 437m (+0.7% reported and +0.2% like-for-like). A positive perimeter of + 3m. All comments below are based on like-for-like figures. Despite a decrease in advertising sales of -3.5% and in circulation, the activity level remains stable. It benefits from a sharp increase in TV Production (+44.9%), related to a favourable phasing of programme deliveries. Magazine activities are down by -4.7%, with a drop in advertising (-6.5 %) and in circulation (-7.1%), partly offset by the strong development of other activities particularly in digital (+19%). Various trends in radio stations (-3.9%): down for Europe 1 and up for musical stations in Eastern Europe and in France (thanks to better audience shares). TV activities (theme channels and TV Production) are strongly up (+28.1%) thanks mostly to TV Production in light of a weak H and, furthermore, positive effects in 2015 tied to sales of rights and a favourable phasing of deliveries, especially on stock programmes. The drop in Pure Digital sales (-20%) is mostly due to the dip in LeGuide sales. Excluding the latter, Pure Digital activities have increased by +5.4% thanks to new sources of revenues. *% of sales in H

15 Lagardère Active: profitability ( m) H restated* H Change Sales (a) % Recurring EBIT of fully consolidated companies (b) m Operating margin (b)/(a) 7.8% 7.6% -0.2 pt Income (loss) from equity-accounted companies (4) 0 + 4m Non-recurring/non-operating items (9) (39) - 30m EBIT 21 (6) - 27m H profitability Profitability is almost stable: the strong performance in TV Production (due to a positive calendar) and the cost reduction plan implemented in 2014 enabled to offset negative trends in advertising and circulation, and in LeGuide. Non-recurring and non-operating items comprise mainly impairment losses on LeGuide (- 25m), and restructuring costs. *Includes impact of IFRIC 21 see slide 6. 15

16 H sales by geographical area H sales by activity Lagardère Unlimited: activity Rest of World 25% 20%* Asia & Australia 24% 19%* Rest of Europe 10% 9%* France 13% 15%* UK 7% 8%* Germany 21% 29%* Other 25% 22%* Marketing rights 44% 54%* Media rights 31% 24%* H sales: 259m (+48.5% reported and +34.9% like-for-like). A positive perimeter of + 6m, and a positive currency effect of + 18m. All comments below are based on like-for-like figures. As expected, an excellent first half, due to a positive calendar effect with the successful execution of two major continental soccer competitions: the African Cup of Nations and the 2015 Asian Cup. In other businesses (stadium management, consulting ), activity ramped up. *% of sales in H

17 Lagardère Unlimited: profitability ( m) H H Change Sales (a) % Recurring EBIT of fully consolidated companies (b) m Operating margin (b)/(a) 3.4% 12.4% +9 pts Income (loss) from equity-accounted companies 1 (1) - 2m Non-recurring/non-operating items (10) (15) - 5m EBIT (3) m H profitability Strong seasonality impact in full year 2015 due to the very positive calendar in the 1 st half. Underlying profit improving in accordance to the recovery plan. Non-recurring and non-operating items comprise mainly restructuring costs (continuation of the European activities reorganisation). 17

18 Group financial results

19 ( m) H restated* H Sales 3,364 3,304 Consolidated income statement (1/2) Total recurring EBIT of fully consolidated companies** Operating activities Other activities (15) (9) Income from equity-accounted companies*** 1 1 Non-recurring/non-operating items (47) (72) Restructuring costs (22) (35) Gains/(losses) on disposals (2) 19 Impairment losses (2) (30) Amortisation of acquisition-related intangible assets and other acquisition-related expenses (21) (26) EBIT *Including the negative impact related to the retrospective application of IFRIC 21 Levies on H figures: - 3m on Recurring EBIT of fully consolidated companies. - 2m on Profit Group share and Adjusted profit Group share. The new interpretation IFRIC 21 modifies the obligating event that gives rise to the recognition of a liability to pay a levy or contribution. The obligating event for the recognition of the liability is now the activity that triggers the payment of the levy, as defined by the tax authorities. **See definition slide 38. / ***Before impairment losses. 19

20 ( m) H restated* H EBIT Consolidated income statement (2/2) Net interest expense (38) (26) Profit before tax Income tax expense (57) (6) Total profit (31) 19 Attributable to minority interests (4) (10) Profit Group share (35) 9 *Includes impact of IFRIC 21 see slide

21 ( m) H restated* H Profit Group share (35) 9 Adjusted profit Group share Amortisation of acquisition-related intangible assets and other acquisition-related expenses** Impairment losses on goodwill, tangible and intangible fixed assets** Restructuring costs** Gains/(losses) on disposals** Tax contribution on dividends paid to shareholders Adjusted profit - Group share *Includes impact of IFRIC 21 see slide 19. **Net of taxes. 21

22 ( m) H restated* H Cash flow from operations before interest, taxes Changes in working capital (198) (97) Consolidated statement of cash flows Cash flow from operations (65) 71 Interest paid & received, income taxes paid (61) (26) Cash generated by/(used in) operating activities (126) 45 Acquisition of property, plant & equipment and intangible assets (98) (133) Disposal of property, plant & equipment and intangible assets 7 4 Free cash flow (217) (84) Acquisition of financial assets (201) (86) Disposal of financial assets 27 (108) Net cash from operating & investing activities (391) (278) *Includes impact of IFRIC 21 see slide

23 ( 954m) - 278m - 184m - 20m ( 1,436m) Change in net debt in H Net cash as of 31/12/2014 Net cash from operating & investing activities Dividends paid Foreign exchange, scope and other items Net debt as of 30/06/

24 Consolidated balance sheet ( m) Dec. 31, 2014 restated* June 30, 2015 Non-current assets (excl. investments in associates and joint ventures) 3,948 4,057 Investments in associates and joint ventures Current assets (other than short-term investments and cash) 2,834 2,894 Short-term investments and cash TOTAL ASSETS 7,507 7,551 Stockholders equity 2,084 2,025 Non-current liabilities (excl. debt) Non-current debt 1,030 1,084 Current liabilities (excl. debt) 3,189 2,965 Current debt TOTAL LIABILITIES AND EQUITY 7,507 7,551 *Includes impact of IFRIC 21: - 1m on non-current assets, - 4m on current liabilities and + 3m on stockholders equity. 24

25 Sound financial position H Strong liquidity. Gross debt centered on bond market & commercial paper. Reduced funding costs thanks to the new bond issued in September 2014 (2.4% effective interest rate), maturing in September 2019 vs. repayment in 2014 of the 1,000m five year s bond (5.1% effective interest rate) and the use of short term commercial paper. Gross debt breakdown: well-balanced funding sources 14% in % in % 28% 52% 65% in 2014 Bonds Commercial paper Bank loans & other 1,091m 954m 1,436m Preservation of liquidity and balanced debt repayment schedule Net debt/ Recurring EBITDA* 2.1x 1.8x 2.6x Authorised credit lines**: 1,250m 802m Cash*: 451m 49m 501m 10m 502m 23m 30/06/ /12/ /06/2015 *Last 12 months rolling recurring EBITDA, see definition slide 38. *Short-term investments and cash. **Group credit facility excluding authorised credit lines at divisions level. 25

26 Appendices to consolidated accounts

27 Lagardère Active 13% Sales by division Lagardère Unlimited 8% Lagardère Publishing 29% Recurring EBIT of fully consolidated companies by division Lagardère Unlimited 25% Lagardère Publishing 27% Group profile H Lagardère Travel Retail 50% Lagardère Active 25% Lagardère Travel Retail 23% Sales by geographic area H Sales by geographic area H USA & Canada 10% USA & Canada 12% Eastern Europe 12% France 35% Eastern Europe 10% France 32% Asia- Pacific 7% Other 2% Asia- Pacific 9% Other 3% Emerging countries: 20% Western Europe 34% Emerging countries: 21% Western Europe 34% 27

28 Sales ( m) H sales Reported m change Reported change Like-for-like change* Lagardère Publishing m -7.1% -2.9% Lagardère Travel Retail 1, m -11.4% +3.5% Recap of performance by division Lagardère Active m +0.7% +0.2% Lagardère Unlimited m +48.5% +34.9% Total 3,304-60m -1.8% +2.9% *At constant perimeter and exchange rates. Recurring EBIT of fully consolidated companies ( m) H EBIT Reported m change restated* Reported change restated* Change at constant exchange rates** restated* Lagardère Publishing 36-14m -27.0% -29.0% Lagardère Travel Retail 30-5m -10.4% -6.1% Lagardère Active 33-1m -2.0% -2.0% Lagardère Unlimited m / / Total operating activities m +6.2% +4.1% Other activities (9) + 6m / / Total m +12.3% +10.2% *IFRIC 21, see slide 19. / **and, for Lagardère Travel Retail, including LSD Suisse & Curtis adjustment, disposed of in 2015 see slide 5. 28

29 ( m) Lagardère Publishing Lagardère Travel Retail Lagardère Active Lagardère Unlimited Total operating activities Other activities Total Lagardère Restructuring costs (6) (4) (13) (12) (35) / (35) Analysis of nonrecurring/nonoperating items in H Gains/(losses) on disposals (0) 17 2 / 19 / 19 Impairment losses / (3) (27) / (30) / (30) Amortisation of acquisition-related intangible assets and acquisitionrelated expenses (2) (20) (1) (3) (26) / (26) TOTAL (8) (10) (39) (15) (72) / (72) 29

30 Balance sheet Income statement Main associates and joint ventures ( m) 2014 (as of 31/12/2014) 2015 (as of 30/06/2015) 2014 (as of 30/06/2014) 2015 (as of 30/06/2015 Marie Claire (42%) Édition J ai Lu (35%) Société de Distribution Aéroportuaire (45%) Société d Édition de Télévision par Câble (49%) Inmedio Société des Commerces en Gares (1) Gulli (66%) - - (4) - Other associates (1) TOTAL

31 ( m) H restated* H Cash flow from operations before interest, taxes Changes in working capital (153) (93) Cash flow statement data Lagardère Publishing Cash flow from operations (101) (61) Interest paid & received, income taxes paid (22) (8) Cash generated by/(used in) operating activities (123) (69) Acquisition of property, plant & equipment and intangible assets (19) (32) Disposal of property, plant & equipment and intangible assets - 2 Free cash flow (142) (99) Acquisition of financial assets (34) 1 Disposal of financial assets 1 1 (Increase)/decrease in short-term investments - - Net cash from operating & investing activities (175) (97) *Includes impact of IFRIC 21 see slide

32 ( m) H restated* H Cash flow from operations before interest, taxes Changes in working capital (51) 29 Cash flow statement data Lagardère Travel Retail Cash flow from operations Interest paid & received, income taxes paid (11) (19) Cash generated by/(used in) operating activities (3) 84 Acquisition of property, plant & equipment and intangible assets (59) (55) Disposal of property, plant & equipment and intangible assets 5 2 Free cash flow (57) 31 Acquisition of financial assets (121) (16) Disposal of financial assets 3 (109) (Increase)/decrease in short-term investments - - Net cash from operating & investing activities (175) (94) *Includes impact of IFRIC 21 see slide

33 ( m) H restated* H Cash flow from operations before interest, taxes Changes in working capital (9) (12) Cash flow statement data Lagardère Active Cash flow from operations 6 18 Interest paid & received, income taxes paid (10) (24) Cash generated by/(used in) operating activities (4) (6) Acquisition of property, plant & equipment and intangible assets (5) (5) Disposal of property, plant & equipment and intangible assets 2 - Free cash flow (7) (11) Acquisition of financial assets (7) (47) Disposal of financial assets 4 - (Increase)/decrease in short-term investments - - Net cash from operating & investing activities (10) (58) *Includes impact of IFRIC 21 see slide

34 ( m) H H Cash flow from operations before interest, taxes Changes in working capital 31 2 Cash flow statement data Lagardère Unlimited Cash flow from operations Interest paid & received, income taxes paid (4) (11) Cash generated by/(used in) operating activities Acquisition of property, plant & equipment and intangible assets (14) (41) Disposal of property, plant & equipment and intangible assets - - Free cash flow 30 (4) Acquisition of financial assets (37) (23) Disposal of financial assets - - (Increase)/decrease in short-term investments - - Net cash from operating & investing activities (7) (27) 34

35 ( m) 2014 H Commitments to purchase shares from third parties (other than minority interests) - - Off balance sheet commitments Commitments given in connection with ordinary activities: - contract guarantees and performance bonds guarantees in favour of third parties or non-consolidated companies other commitments given Commitments received: - counter-guarantees of commitments given other commitments received Mortgages and pledges

36 At June 30, 2015 entities forming part of Lagardère Unlimited had guaranteed minimum future payments amounting to 1,465m under long-term contracts for the sale of TV and marketing rights. These payments break down as follows by maturity: Lagardère Unlimited Guaranteed minimum payments Maturity ( m) Guaranteed minimum payments under sports rights marketing contracts 30/06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/2021 & beyond Total ,465 At June 30, 2015 the amounts due under marketing contracts signed by these same entities with broadcasters and partners amounted to 1,624m, breaking down as follows by maturity: Maturity ( m) 30/06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/ /06/2021 & beyond Total Sports rights marketing contracts signed with broadcasters and partners ,624 36

37 ( m) H restated*/** Dec. 31, 2014*** H1 2015** Recurring EBITDA Total recurring EBIT of fully consolidated companies**** Depreciation & amortisation of intangible assets and property, plant and equipment Dividends received from equity-accounted companies Total recurring EBITDA *Includes impact of IFRIC 21 see slide 19. **Last 12 months rolling figures. ***IFRIC 21 impact < 1m on 2014 full year consolidated income statement. ****See defintion slide

38 Recurring EBIT of fully consolidated companies is defined as the difference between profit before finance costs and tax and the following items of the profit and loss statement: For the records: definitions of Recurring EBIT of fully consolidated companies, Like-for-like sales and Free cash flow Income (loss) from equity-accounted companies; gains (losses) on disposals of assets; impairment losses on goodwill, property, plant and equipment and intangible assets; restructuring costs; items related to business combinations: - expenses on acquisitions; - gains and losses resulting from acquisition price adjustments and fair value adjustment resulting from changes in control; - amortisation of acquisition-related intangible assets. Like-for-like sales were calculated by adjusting: 2015 sales to exclude companies consolidated for the first time during the year, and 2014 sales to exclude companies divested in 2015; 2015 and 2014 sales based on 2014 exchange rates. Free cash flow is defined as: net cash generated by operating and investing activities, excluding acquisitions/disposals of financial assets and short-term investments. 38

39 Significant events

40 Book markets flat worldwide. Background and overall performance Total H sales are down -2.9% like-for-like vs. H1 2014, and are up +7.1% overall, thanks to: favorable foreign exchange rates; recent acquisitions in UK contributing positively to sales growth. New corporate headquarters near Paris completed and fully operational. Successfull move to new offices for Hachette Book Group and Hachette UK. 40

41 Stronger performance vs. H1 2014, across all segments but Education. General fiction & non-fiction, illustrated books and Larousse are leading growth. France Education is slightly down vs. H1 2014, but exceeding low expectations. 41

42 UK sales are down compared with H International markets US share of best-sellers in line with H1 2014, and superior to market share, but e-book sales falling short. Spain still struggling, and Latin America delivering strong performance. Partworks hit by Russian exchange rate, but growing elsewhere. 42

43 In the US US e-book market peaked at 25% in Q2 2014, has been eroding since. Hachette Livre e-book sales in the US declining both in volume and in value, due to market conditions and to new Amazon contract, as expected. Digital activities In the UK E-book sales declining vs. H (VAT change impact as of January 1, 2015). New long-term contract signed with Amazon. All other markets growing very slowly. 43

44 Downside No improvement expected in Education in France. Upside 2 nd half outlook Fifty Shades sequel in French scheduled in Q3. New Asterix album scheduled in Q4. Partworks to benefit in 2 nd half from larger number of new product launches than expected. 44

45 Significant events

46 Lagardère Services changed its name to Lagardère Travel Retail on July 8, It still includes revenues from the Distribution division. The rise (+5.8% * ) in passenger traffic worldwide has improved compared to last year (+4.9%). The growth remains strong in Europe at +4.8%. Asia-Pacific traffic growth is recovering after the Malaysian airline crashes and the economic slowdown. Background (1/3) At constant rate and perimeter, the favourable traffic evolution combined with a dynamic management of the network, generated a sustained growth of Travel Retail sales (+7.3%). Total division like-for-like sales increased by +3.5%, the strong performance of Travel Retail being partly absorbed by the decline of Distribution (-4%), mainly North America. Total sales on a reported basis reached 1,640m (-11.4% vs. June 2014) with a favourable exchange rate +2.3pts (rise of the Swiss franc, the US, Australian and Canadian dollars) and, as expected, a negative effect of the scope impacts (- 306m or -16.6pts): deconsolidation impact (- 214m): deconsolidation of Relay activities in train stations in France (creation of a joint venture with SNCF in September 2014), as well as high-street Retail activities in Poland (now consolidated using the equity method after disposal of 51% of Inmedio's capital in December 2014); the disposal in Switzerland of Retail activities (Naville) in February 2015, with an impact of million, and of book stores (Payot) in July 2014 with an impact of - 25 million; acquisitions for 54 million, essentially the Airest Group's activities (comparable since mid-april 2014). Distribution divestment process is on-going: disposal of the Swiss activities completed on February 27, 2015; disposal of Curtis Circulation Company, a leading US national distributor of magazines on June 26, 2015; the process to sell the other Distribution and Integrated Retail businesses (in Spain, Hungary, Belgium and Canada) is on track. * Source: ACI data / Europe: +4.8% vs. +5.2%, Asia-Pacific: +8.7% vs. +5.4%, and North America: +3.9 % vs. +3.2% (at April 30, 2015 vs. Dec. 31, 2014). 46

47 Main perimeter evolution since the beginning of the year (Travel Retail) Acquisition of 17 fashion and confectionery stores at JFK airport (New York USA) on April 21, 2015 ($25m turnover projected for the first full year). Significant perimeter effects in 2014 impacting 2015 (Travel Retail) Background (2/3) The Airest Group was acquired in April Airest operate more than 200 sales outlets in 11 countries, in Foodservice and Travel Retail ( 90m turnover at the end of June 2015). The creation of two joint ventures related to the Travel Essentials business line (transfer to equity method): - in France, a joint venture with SNCF (French railways) at the beginning of September 2014, following the gain of a 10-year concession contract to operate newsstands and convenience stores (Relay, Hubiz) in the majority of the French railway stations (307 sales outlets); - in Poland, a joint venture with Eurocash SA beginning in December 2014 which encompass the newsstands and convenience stores in malls and city centers (Inmedio activities in Poland: 413 stores). 47

48 In a still challenging environment, Travel Retail growth remained strong and halfyear 2015 was marked by: Background (3/3) The good performances and full effects of the new activities: - new Fashion concessions in Spain (6 stores opened in Madrid, Malaga, Barcelona and Valencia along year 2014) and in the UK (6 stores in Birmingham opened in second half 2014); - Foodservice developments in France with Simply Food (Marks & Spencer at La Défense opened in June 2014), new concessions opened in 2015 at Nice airport and in hospitals (Générale de Santé: 16 new stores); in the US, full effect of stores opened in 2014 at Los Angeles TBIT; - Foodservice operations started in Iceland in March 2015 (7 stores); - opening of 4 additional Duty Free stores at Rome airport in Gain or renewal of major contracts: Warsaw T1 (Retail and Foodservice) opened at the end of May 2015, Auckland (New Zealand; Duty Free concession taken over on June 26), Krakow (Poland) Duty Free concessions to be taken over in 2015, Luton (renewal of the Duty Free concession),toronto Pearson (renewal of the Travel Essentials concession), Kunming (China) master concession won to be opened late New and more aggressive marketing and commercial initiatives with the roll-out of the new Relay and Aelia concepts as well as the continuous strengthening of the purchasing ability. 48

49 Duty Free & Luxury Travel Retail in France 100% managed sales up by +8% attributable to: - an increase of +9.8% at Paris airports fueled by the strong improvement of the Fashion activities (+21%) as well as the sustained growth of the electronics & travel accessories network and favorable trends on the core duty free segment (+6%), positively impacted by the increase in spending of Chinese passengers; - sales in regional airports outside Paris are showing a decrease of -3% due to the closing of Eurotunnel stores from March 2015, not fully compensated by dynamic growth at Nice and Lyon airports. Travel Essentials and Foodservice 100% managed sales increase by +4.0%: - flat press sales and increasing book sales (+5%) within Relay network: higher press sales in January/February following Charlie Hebdo terrorist attack and dynamic book release; - successful commercial initiatives and modernisation of the network: strong growth of the Food & Beverage category (+19%); renovation of La Tour Eiffel stores; modernisation of the SNCF stores following the gain of the tender in

50 Italy Travel Retail in Europe (1/3) Rome airports - A major fire occurred on May 7 at Fiumicino airport, destroying part of the commercial spaces of the Terminal 3 (closing of 2 stores). Insurances should compensate the losses and the company is working with airport authorities to optimise customer service. - Despite this event, sales increase by +14% (traffic +7%). Airest Italy - Acquisition of Airest Group on April 16, On a comparable basis, sales increase by +1%. As expected, Foodservice operations have been affected by lower sales on motorways (-6%) and shopping malls (-5%). Duty Free & Travel Essentials more than compensate this impact with sales above last year at +7.5%. Netherlands Despite the closing of the largest store in Lounge 2 due to major renovations at Schiphol airport, sales are only down by -1.8%: - excellent transfer of sales to Lounge 3 stores and great performance of temporary stores in Lounge 2; - positive traffic trend (+4.5%). 50

51 United Kingdom Growth of +11.5% attributable to both the opening of 6 fashion stores in Birmingham in Q and to the performance of the Luton platform (which has been successfully renewed in Q1 2015). 22 stores at the end of June 2015 vs. 15 stores in June Travel Retail in Europe (2/3) Spain Sales increase by %: - Duty Free activities have strongly increased vs through the opening of 6 Fashion stores in Madrid, Barcelona, Malaga and Valencia airports last year; - Travel Essentials Print sales decreased by -2% in Spain and in Portugal, as the rationalisation of the network (21 stores closed in 2014), partly offset by the development of the Souvenirs and Food & Beverage categories; - the network comprises 146 stores (down 8 vs. June 2014). Germany Sales increase by +1.2 %: - Travel Essentials is stable; - growth of Foodservice: +7% thanks to the development of the Frankfurt train station food court and the development of the Coffee Fellows network (sales at +12.2%). The network consists of 124 sales outlets at end of June 2015 (32 in Foodservice). Austria/Slovenia (Airest) Acquisition of Airest Group on April 16, The network consists of 36 sales outlets at end of June

52 Poland Travel Retail in Europe (3/3) Excluding the impact of Inmedio activities deconsolidation on December 1, 2014, Poland s total turnover is growing by +11.8%, with +13% from both Duty Free activities and Travel Essentials and +4% from Foodservice. This positive trend is mainly explained by the strong traffic trend (Warsaw: +7.5%) and the opening of Terminal 1 stores at Warsaw airport in May Total managed network is +52 stores (780 sales outlets, including 419 Inmedio stores). Czech Republic Despite the decline in Russian traffic and spend, sales increased by +6.0% in 2015, mainly due to the continuing development of the network and the Airest integration from April 2014 (20 stores), Foodservice revenues increased by +31.9%. Duty Free showed a -6% decrease due to lower sales with Russian passengers at Prague airport following rubble devaluation and political crisis. Romania and Bulgaria Romania: sales up by +15.5% with a network of 218 sales outlets (+12 additional stores in 2015). Bulgaria: business grew by +19.8% thanks to the opening of 7 new stores in 2014/2015 and the good performance of the Food & Beverage and Tobacco categories. 52

53 Retail activities in Canada and in the United States show a +5.7% growth on a comparable basis (rate and perimeter). Increased revenues from the comparable network: +8% in Food & Beverage, +5% in Souvenirs and Travel Accessories and -5% for Press. Travel Retail in North America Revenues from non-comparable network has an impact of -2.0pts on total sales due to strong perimeter effects: - JFK T4 acquisition in April 2015 (14 stores opened at the end of June): impacting sales at +2.0pts; - Airest integration from April 2014 (9 stores): impacting sales at +0.8pt; - disposal of urban retail stores in Canada (29 stores disposed at the end of June 2014): impacting sales at -6.0pts; - other network effect (mainly Dallas and LAX Food & Beverage): impacting sales at +1.2pt. 53

54 Pacific Travel Retail in Asia-Pacific In 2015, on-going rationalisation of the news & book network has been compensated by the developments of the Duty Free & Luxury activities (Auckland Duty Free concession opened in late June, Victoria s Secret, MAC and AMUSE concepts in different locations) and the Travel Essentials activities (Tech2go, Souvenirs and Convenience). Like-for-like sales are up +4% for Travel Essentials, driven by books and food categories in Australia and overall strong performance in New Zealand. The network comprises 138 sales outlets at end of June 2015 (+6 stores). Asia Strong turnover growth (+9.8%), despite a rather challenging environment: - slowdown of traffic growth in Singapore and Malaysia due to continuous adverse effects of political events in Thailand and the 2 airplane crashes from Malaysia Airlines; - lower average spent, due to the effect of the new Chinese regulations aiming at limiting sumptuary spending and to the devaluation of the Indonesian rupiah. In this context, the turnover growth was essentially driven by the ramp-up of Fashion activities in China and the continuous development of Singapore sales (openings of new Fashion stores and new products/range development). Network: 128 stores in Asia at end of June 2015, which is an increase of +13 stores. The company exited from Taiwan (6 stores). 54

55 Significant events

56 Print Advertising In a particularly depressed print advertising market, Lagardère Active s sales decrease has been curbed to -6.5%. Elle, Elle Décoration, Elle à Table and Télé 7 Jours remain leaders on their competitive segments. Magazine Publishing Print Circulation In a declining market, the circulation revenue went down by 7.1%. The subscription revenue trend partially offset the newsstand decline. Digital Digital turnover on apps and website has registered double digit growth. In particular, Public and Télé 7 Jours turnover have increased significantly: their applications are among the leaders on their segments. Licensing The development of licenses continues in 2015 with the launch of Elle Kazakhstan (February 2015) and Elle Décoration in Lebanon and Middle East (March 2015). 56

57 Advertising radio market has declined during the first semester In this context, Lagardère Active s radios have performed variously. Europe 1: number 3 news and entertainment radio station in France, reaching daily over 4 million people. Despite its stable overall audience share, Europe 1 revenues have decreased, due to late 2014 decrease on its main commercial target audience (25-59 years old listeners). Europe1.fr launched Europe 1 Plus in March 2015, thus strengthening its video offer. Radio RFM: number 2 music radio station in France on the years old target segment. A record high audience in 8 years (2,566,000 listeners and 4.8% daily reach) was reached on the last audience wave (January-March 2015): audience share, cumulative audience and listening time have increased. RFM s growing success is due to the diversity of its music and the quality of its hosts. Virgin Radio: biggest increase in cumulative audience (wave January-March 2015) compared to the other French musical radio stations. Virgin Radio increased its average audience by 13%, altogether with a successful prime talk show. Virgin Radio is very active on digital device: visits on the website increased by 35%. International radios In H1 2015, advertising sales increased in each country where Lagardère Active Radio International (LARI) operates, with remarkable performances, notably in Poland and Romania. In Romania, on the urban market, Europa FM ranked number one private radio station in audience share over the last two audience waves. In the Czech Republic, LARI reinforced its positions by creating a joint venture for advertising brokerage operations with Media Bohemia Group, a media group editing national and regional radios. LARI continues to implement its strategy to set up a radio network on the African continent. After the launch of Vibe Radio in Senegal in September 2014, LARI gained a frequency in Ivory Coast and intends to broadcast under the Vibe Radio trademark in Abidjan in the second half of

58 Lagardère Active Broadcast: Lagardère Active has filed a draft public buyout offer for all the 8,229 shares of its audiovisual division Lagardère Active Broadcast, not held by Lagardère Active. This operation will simplify Lagardère Active Broadcast's legal processes, and entail cost savings (including on listing fees). Television With Gulli, TiJi and Canal J, Lagardère Active is the first TV offer for children in France, with 34% market share. Gulli remains the leader of kids channels in the French television market, ahead of TF1 and France 4 (the state-owned kids channel). Lagardère Active manages to keep its leadership over the kids advertising TV market. Advertising sales of Gulli increased this semester. International developments Mezzo continues to expand internationally in Asia and has been launched in Canada. Gulli has been launched in Africa s French speaking countries within A+ platform (Group Canal+). Digital Replay TV consumption continues to rise in 2015 and Gulli.fr is the leader website for children in France. 58

59 H performance: 75% revenue increase in H (+45% on a like-for-like basis) mainly due to the favorable phasing of program deliveries and positive effects in 2015 tied to sales of rights. TV Production and Distribution First development step in Europe, with the acquisition as of May 26, 2015 of Grupo Boomerang TV, a leading independent producer in Spain producing scripted and non-scripted content. Lagardère Entertainment performance Lagardère Entertainment remains the no.1 producer of scripted contents and no.2 producer of non-scripted programmes in France, with an increasing volume of production compared to last year. Very good audience performance for prime time TV series especially Clem, Cain and On se retrouvera. The other series of Lagardère Entertainment continue to attract good ratings, particularly Joséphine, ange gardien, Nos chers voisins and Pep s. First development step in Africa Creation of Diffa, a distribution company focused on selling African scripted content to broadcasters all across Africa. 59

60 During the first semester of 2015, Lagardère Active has continued to develop the division s brands and new sources of revenues. Digital Pure Players Doctissimo is the leading website for providing information on e-health and wellbeing. Since the beginning of 2015, the website has been upgraded to a responsive format. Moreover, Doctissimo is pursuing its diversification in the e-medical sector with MonDocteur.fr, first online booking website of medical consultations, and Doctipharma, a service company allowing French pharmacies to create their own online dispensary. BilletReduc, leader in France for online booking at discount prices, has incurred a strong growth during the first semester. Newsweb, editor of Sports.fr and Boursier.com, the first French editorial agency on financial information, is pursuing the diversification of its revenues by developing monetisation solutions for third party websites. LeGuide LeGuide closed its Ciao office in Munich in H and continues its activities from Paris. A new Google algorithm update stroke the group traffic in April The group is aiming at developing new sources of alternative traffic and implementing innovative solutions, while pursuing its mobile development. Legal proceedings were recently opened by the European Commission, which expects Google to re-establish a more balanced competitive environment. The group is also successfully pursuing its international expansion by signing several major partnerships. 60

61 Significant events

62 Football Africa Successful delivery the 2015 Orange Africa Cup of Nations in Equatorial Guinea. Business units (1/2) Renewal of partnership agreement with CAF* until 2028 to continue to commercialise the marketing and media rights of the main regional football competitions in Africa, including the Africa Cup of Nations, the African Nations Championship and the African Champions League. Football Asia Successful delivery the 2015 Asian Cup in Australia. Football Europe Acquisition of UFA Sports, a German sports marketing company that will enable Lagardère Unlimited to complement its activities in rights management in Europe. Expansion in Sweden with the signing of comprehensive marketing agreements with 3 clubs (10-year contracts). Comprehensive marketing agreements in Germany (MSV Duisburg) and France (Red Star). *CAF: Confédération Africaine de Football. 62

63 Stadium Management Signing of a 10-year agreement to operate Sweden s Friends Arena. Business units (2/2) Consulting and digital Acquisition of akzio! ajoint, the market leading sponsoring agency in Germany. With this acquisition, Lagardère Unlimited is complementing its service portfolio in Europe following the global growth strategy in consulting and brand activation. Expansion of strategy and activation activities in the US, France, Germany and the UK. Creation of digital products for football clubs in Europe. 63