Hachette Filipacchi Medias

INVESTOR DAY

PARIS

FEBRUARY 2, 2004 HFM: in a nutshell…

Ô The world leader in consumer magazines.

Ô 2002 consolidated revenues: 2156 M€.

Ô 238 different magazines in 36 countries.

Ô Most important market positions: n N°1 in France, n N°1 in Spain, n N°4 in the US, n N°3 in Italy, n Local actor in the most important markets in the world.

Ô 57% of total revenue generated outside France, (64% of magazine activities)

Ô Headcount: 7500 people.

2 HFM: a consistent strategy

Ô HFM is unique:

l We are global thanks to ELLE and to our other international brands,

AND

l We are local thanks to acquisition and/or launches country by country,

AND

l We control our business in all major markets (except one)

3 HFM: a global presence

Controlled subsidiaries

Joint venture

Licence

4 238 Magazines in 36 Countries HFM: Business organisation

P.Bellanger

HFM CorporateCorporate finance finance

AM Couderc JP Denfert Rochereau P. Zagdoun O. Chapuis

Magazine in France Magazine International Daily Press Interdeco (PMF) (PMI) Ad sales company

Ad sales company PMF Ad sales company PMI Ad sales company PQ

Ô Four main lines of business

5 HFM: Measuring the performance

Ô Overall performance

Ô Benchmarking

Ô Profitable acquisitions : the Japanese and Italian examples

6 HFM: a profit driven Publisher

EBIT x 19 Ô Three periods of time: Cagr= 14,4% Ô 1980-1988, beginning of internationalisation process,

Ô 1989-1997, Priority is given to international launches; Impact on Ebit,

Ô 1998-2002, Revenue growth consolidation and EBIT Growth acceleration. Rev X 8,4 Cagr=11,1%

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 7 Rapid revenue growth from a strong base

1997-2002 EBIT growth (publishing only)

HFM Emap Mondadori

Ô Within the benchmark: n HFM has the most important revenues in magazine n HFM creates the most important volume of new revenues each year.

Ô Pertinent data not avalaible for G+J

Ô Exchange rates stable through 1997 / 2002 Ô HFM : Non strategic businesses deducted: Printing, Radio, posters, Ô Revenues calculated according to international GAAP 8 Ô EMAP : without Petersen, magazines only 1997-2002: EBIT growth (normalised perimeter)

1997-2002 EBIT growth (publishing only)

HFM Emap Mondadori

Ô Within the benchmark: n HFM has the most important EBIT in magazine n HFM creates the most important volume of new EBIT each year.

Ô Exchange rates stable through 1997 / 2002 Ô HFM : Non strategic businesses deducted: Printing, Radio, posters, Ô Revenues calculated according to international GAAP Ô EMAP : without Petersen, magazines only

9 HFM: high margin level with some upside

Examples of magazine division profitability in 2002

16,3% 16,2%

11,8% 9,4%

6,5% 6,0% 6,0%

Emap Time HFM G+J RCS sanoma Burda Warner

Ô Margin pickup at HFM: almost 0,50% per year over the last five years

Ô Actually, data are not strictly comparable since TW and Emap are deeply concentrated in two countries.

10 Sources: annual reports, HFM (S1/03+S2/02) international GAAP,Bank studies Hachette and Emap: Magazine houses

Comparisons of HFM and Emap

20,0%

15,0%

10,0%

5,0%

0,0% Emap UK HFM UK Emap France HFM PMF Emap internatl HFM inter (hors UK) -5,0%

Ô Margin gaps in France and in UK tend to decrease.

Ô Excluding launch costs in 2002, EBIT margin for HFM France would exceed 15%

Ô HFM has developped a powerful and profitable international network.

11 HFM: Profitable acquisitions

Ô HFM acquisitions : Main characteristics

n Medium size companies (versus structuring) n « sleeping beauties » vs « market share » n Strong potential of synergies with HFM at various levels n High ROI and reasonable prices measured through a multiple of revenues.

Fugin-Gaho Rusconi Japan Italy

Acquisition multiple 0,7 X Rev 1,1 X Rev ROI 17% 10%

12 HFM: division presentation

Ô Olivier Chapuis: HFM approach to the advertising business consolidation: the other network.

Ô Jean Paul Denfert Rochereau Expanding in mature and in emergent countries: monitoring the different challenges of a global expansion

Ô Anne-Marie Couderc Defining a new strategy for homeland

Ô Philippe Zagdoun regional dailies and supplements

13 As a conclusion….

Ô Strategical axis Financial impact

Ô Internationalisation Increased growth Ô Segmentation Higher profitability Ô Size and Power Higher Cash flow Ô Time Return on investment

Ô Our strategy enables HFM, year after year, to increase our profitability, that is to say our contribution to Lagardère’s shareholder.

14 2003 Advertising review 2004 Forecasts

15 Worldwide results - Key figures

Ô Advertisers in the world’s top 9 countries investments : 230 billion euros

USA : 135 EU7 : 60 JP : 35

308 billion euros worldwide

16 Worldwide results - Key figures

Ô The US alone accounts for some 60% of the global market

2002 2004 Europe 26.4% 25.7% Europe USA 58.2% 59.4% 25% Japan 15.4% 14.9% Total 100.0% 100.0%

US 60%

Japan 15%

17 Worldwide results - Key figures

Ô UK and Germany account for more than 50% of all European investments

SW PO SP 3% 2% 10% DE 26%

IT 15%

FR UK 17% 27%

18 Worldwide results - Spending mix on key markets

Ô Dailies and TV are smaller in Europe than in the US and in Japan Ô Magazines are much stronger in Europe

14% 20% 46% 11% 9% Total 9

10% 24% 49% 4% 13% Japan

12% 21% 47% 15% 4% USA

20% 17% 41% 6% 16% Europe 7

0% 20% 40% 60% 80% 100%

Magazines Dailies Television Radio Others

19 Source : Ad’Barometer/Interdeco European results – Country shares

Poland Sweden Spain 2% 1% Ô Europe : 6% 8.4 billions Euros Italy Germany invested in consumer magazines 14% 31%

Ô Three countries account for a major market share.

France 20%

UK 26%

20 Forecasts

21 Worldwide results Key market data : major media advertising worldwide

Europe : 2,5 20042004 US : 4,1 Japan : 1,2 ++ 3.23.2

235 billion € 20032003 ++ 1.71.7 20022002 228 billion € ++ 0.10.1

224 billion €

22 Worldwide results Key market data : major media advertising worldwide

Global expenditure (1999-2004) Million euros Million euros 560 000 260 000 Global advertiser expenditure (medias, 540 bn€ 540 000 internet, below-the-line) (left scale) 250 000

520 000

240 000 500 000 235 bn€

480 000 228 bn€ 230 000

460 000 Major medias (TV, press, radio, 220 000 outdoor, cinema) (right scale) 440 000

210 000 420 000

400 000 200 000 1999 2000 2001 2002 2003 2004

23 Worldwide results AD/GDP ratio

Minimum Maximum 2004

France 0.66 0.76 0.66

Germany 0.70 0.91 0.73

UK 0.93 1.14 0.93

Europe 7 0.74 0.85 0.74

Japan 0.60 0.91 0.85

USA 1.15 1.34 1.16

24 2003 / 2004 : the growth in HFM advertising revenue is generally higher than that forecast for magazines

10%

5% Magazines 03 0% HFM E03 -5% Magazines Market forecasts 04 -10%

-15% France Spain Italy UK US Japan

Countries Magazines 03 HFM E03 Magazines Market forecasts 04 France -1,9% 1,6% 1,2% Spain -1,5% 0,5% 2,2% Italy -1,3% -1,5% 1,4% UK 1,4% 5,2% 3,2% US 3,3% 4,8% 2,6% Japan -0,1% 6,5% 1,2%

Source Ad Barometer Major trends 2000-2010 : Globalization and fragmentation

26 Globalization

27 5 OR 6 MAJOR INTERNATIONAL CORPORATIONS BY SECTOR

Ô Cosmetics and Fashion : L’Oréal, Lauder, LVMH, Chanel, Beiersdorf

Ô Automobile : GM, Ford, Toyota, Daimler, VW, Renault, PSA

Ô Telecom : Microsoft, HP,Vodafone, IBM, France Telecom

Ô Food : Nestlé, Danone, General Mills, Coca, Mars, Pepsi

28 A growing trend toward more centralization and consolidation

Ô Top twenty worldwide advertisers (55 billion euros) = 20% of the worldwide advertisers

Ô The top seven media agencies (160 billion dollars) = 60% of the worldwide advertising expenditures : n Starcom/Zenith Media, Magna Global, Mindshare/CIA, Omnicom, Aegis, Mediacom, MPG

Ô HFM : top twenty five worldwide advertisers (250 millions euros) = 25% of HFM global advertising revenue (1,075 billion euros net)

The key strategic significance of international advertising business

29 The only truly global organization Brands, readership contracts and consistent targets

36 editions

An universal editorial concept 5 400 000 copies / month 20 000 000 readers/month

18 editions 1 600 000 copies/issue 7 000 000 readers/issue

6 editions 400 000 copies/issue More than 2 million readers/issue

Network 10 editions 3 700 000 copies/issue More than 16 million readers

14 editions 30 3 million copies/month + 20 million readers A policy for advertising harmonization among the top 25 key accounts

Some 250 million euros are at stake

© L ’OREAL © LVMH © PROCTER & GAMBLE © GENERAL MOTORS © ESTEE LAUDER © PPR (YSL - GUCCI) © FORD © CHANEL © DAIMLER © UNILEVER © NISSAN © TOYOTA © VIVENDI © BEIERSDORF© 123 MULTIMEDIA © NESTLE © HONDA © VW © ALTRIA GROUP © AUCHAN© The SWATCH GROUP © PSA© JOHNSON & JOHNSON© TROIS SUISSES © BMW

31 A strengthened position in the main advertising world markets

FRANCE ITALY UK N°1 31% N°3 13% N°6 7%

All titles All titles All titles

15% 23% Women’s Women’s mags mags 33% Women’s Source Secodip Acquisition of Rusconi Source AC Nielsen Acquisition of Attic Futura Source MMS mags Takeover of Elle and MarieClaire Takeover of Elle and Red SPAIN US JAPAN non- japanese N°1 N°5 N°1 14% 20% 16% UC Hachette All titles 21% Acquisition Women’s of Fujingaho mags 24% Women’s mags Source Infoadex Source LNA Source TNS Secodip 32 2002 Fragmentation

33 Ô Audience fragmentation to the detriment of major n a ramp up of special interest channels networks n Internet development

Ô In this context, Magazines n are fully capitalizing on this trend because of their ability to target customers n and can prevail l the 10 most powerful magazines : 82% penetration l he 10 most powerful TV commercials : 66% penetration

Ô Ex : In France, Femina : 4 million copies – T7J : 2 300 000 copies - TV Hebdo : 1 800 000 copies

34 New media, which are complementary to magazines, do not have an impact on magazine readership

110 107 107 107 108 110 104 106104 106 106 106 106 102 103 100 100100100100 98 98 99 98 98 98 100

50 1998 1999 2000 2001 2002

Sources: ABC (US),ABC (UK), ADS US UK Italy Spain France (Italy),OJD (Spain), OJD ( France)

35 Consumers do not choose between old and new media, but between mass and segmented media

The leading and trendiest individuals are heavy magazines readers as well as being new media enthusiasts

36 Magazines have a bright future

37 Presse Magazine France Magazine publishing France Strategy presentation HFM in France: a brand strategy

Ô Centered on three main areas:

n Enhancing our position as French market leader for magazines

n Focusing on our core business

n Building up consistent magazine families around our flagship titles

39 1. Enhancing our position as French market leader in magazine publishing

n PMF is the leader on the French market

Distribution market share 2003 Advertising market share 2003 (source : OJD) (source : Secodip)

19,00% 25,0%

18,00% 20,0% 17,00% 15,0% 16,00% 10,0% 15,00% 14,00% 5,0%

13,00% 0,0%

* PMF EMAP Prisma PMF EMAP Prisma Régie Obs Grpe Figaro Marie-Claire (magazines)

n The French magazine publishing market is a very creative market, characterized by lively competition and the presence of all major international groups

* Excl. Magazine supplements TV Hebdo (1,800,000 copies) and Version Femina (3,600,000 copies)

40 Top titles in each segment

UPSCALEMARCHE WOMEN'S DES FEMININS MAGAZINES LIFESTYLEMARCHE ART MAGAZINES DE VIVRE Exl supplementsHors suppléments (Total ( Diff annual cumulée circulation) annuelle) 200 000 180 000 20 000 000 160 000 140 000 15 000 000 120 000 100 000 80 000 10 000 000 60 000 40 000 5 000 000 20 000 0 Journal de la Elle Déco M. Claire Maison Coté Sud Maison md 0 Maison Maison Française Figaro Elle M. Claire Cosmopolitan Biba M. France

FAMILYMARCHE DESMAGAZINES FAMILIAUX MONTHLYMARCHE & BIMONTHLY DES MENSUELS AUTOMOBILE ET BIMENSUELS MAGAZINES AUTOMOBILE

400 000 350 000 350 000 300 000 300 000 250 000 250 000 200 000 200 000 150 000 150 000 100 000 100 000 50 000 50 000 0 0 Parents Top Famille Enfants Famili Auto Moto Automobile Magazine Auto Journal

100% HFM 41 HFM shareholder & operational Partnership Source : Diffusion Contrôle. Diffusion Totale 2002-2003 Competition Top titles in each segment

NEWS MAGAZINES TVMARCHE MARKET TV 800 000

2 500 000 600 000 2 000 000

1 500 000 400 000 1 000 000

200 000 500 000

0 0 Télé 7 jours Télé Z Télé Loisirs Télé Star Télé Poche Paris Match L'Express Nouvel Le Point VSD Courrier observateur International

MEN'SMARCHE MAGAZINES DES MASCULINS PEOPLE PRESS*

600 000 600 000 500 000 500 000 400 000 400 000 300 000 300 000 200 000 200 000 100 000 100 000 0 0 France DIMANCHE VOICI ICI PARIS POINT DE VUE OH LA Entrevue FHM Maximal Max Men's Health Newlook *

100% HFM 42 HFM shareholder & operational (*) : Source éditeur Partnership (*) : Source éditeur Competition 2. Focusing on our core business

n The sale of industrial activities has enabled us to put in place profitable contracts

n The merger of Hachette and Filipacchi Groups in 1997 has multiplied synergies

n These 2 factors combined have to accelerated the reduction in structure overheads from 2000 onwards

STRUCTURAL OVERHEADS

102 100 98 96 94 -11% 92 90 88 86 84 82 1998 1999 2000 2001 2002 2003

43 3. Building consistent families of magazines around strong brands

Ô Over the past 20 years, the French branch has achieved through efficient management a sound and development of its historical titles

(1945) (1969) (1960) (1946) (1948) (1977) (1934)

Ô Synergy and marketing Ô Spin-offs and families

Ô Internationalisation

44 Scaling up from a foundation of historical titles with diversified revenue streams

Margins trend (baseline 100 in 1997)

250 200 150 100 Diversified revenues steams 50 0 Advertising 15% 1989 1991 1993 1995 1997 1999 2001 2003

News stands Subscribtion 54% 15%

45 Building consistent families of titles

Ô Since 1997, our portfolio has developed through:

n Launches: l Elle à Table, l Isa, l Bon Voyage, l Maximal, l Match Belgium l Princesse l Witch l Winnie Lecture l Campagne Déco l Public

46 Building consistent families of titles

Ô Acquisitions: n Journal de la Maison, n Mon Jardin Ma Maison, n Zurban, n Hola

Ô Spin offs: n Match en Chine n Première n Entrevue Choc! n …

47 Building consistent families of titles A brand strategy

TV Youth News

People

Historical titles

Choc Women's

Men's

48 Leisure HFM in France: What strategy for tomorrow?

n Continue to improve our profitability

n Maintain the annual investment necessary for our portfolio renewal

n Focus on editorial creativity and marketing innovation

n Pursue a strategy of targeted and opportunist growth by acquisition and launches

49 Best of 2003

Record year for Paris Match

Paris Match No. 1 French weekly news magazine (777 000 copies)

Best growth in paid France sales for 20 years (close to 5%)

50 ELLE : 1st French magazine for advertising revenue

ELLE elected Magazine of the year 2003

51 ENTREVUE wins OJD Etoile d'Or

Entrevue wins OJD "Etoile d’Or" award for highest total paid circulation (in absolute value terms) with over 600,000 copies

Entrevue is the unrivalled leader in men's magazines

52 HFM

Regional Dailies & Supplements 02/02/2004 Evolution of the Equity investment held by HFM :

InIn 198119902003

Operator Minority

Le Parisien also holds the national *daily "Aujourd'hui en France". Total Circulation 500 000ex

54 HFM's regional dailies and supplements branch A very efficient ad sales company

Ô The dailies use the service of a local ad sales company (EUROSUD, owned at 100% by HFM) which has excellent results in the sector

Compared percentage of Growth 1999-2002

25,00%

20,00%

15,00% EUROSUD 10,00%

5,00% Market's average 0,00% Growth 1999-2002

55 Source : SPQR (French Regional Dailies' Organization) HFM's regional dailies and supplements branch

HFM has been a great innovator in the dailies' market by introducing new business models :

Ô Created the supplements, TV Hebdo and Version Femina, sold to French dailies (outside or within HFM)

Ô Launched Marseilleplus, a free editorial daily newspaper which complements La Provence in terms of n editorial content and readers n advertising revenues

56 HFM's regional dailies and supplements branch

n Publisher of 6 millions copies each week with the women and TV supplements :

VERSION FEMINA : TV HEBDO : First European weekly women magazine 2 millions copies each week 4 millions copies each week Distributed with 15 dailies 57 Distributed with 38 dailies Evolution of our women supplement's turnover since 1997

TURNOVER (K€)

60 000

50 000

40 000

30 000

20 000

10 000

0 1997 1998 1999 2000 2001 2002 2003

Sales Advertising

58 HFM's regional dailies and supplements branch

HFM has been a great innovator in the dailies' market by introducing new business models :

Ô Created the supplements, TV Hebdo and Version Femina, sold to French dailies (outside or within HFM)

Ô Launched Marseilleplus, a free editorial daily newspaper which complements La Provence in terms of n editorial content and readers n advertising revenues

59 Employees in the daily Regional Press since 1997

2100 Acquisition of 2000 Nice Matin 35 hours law 1900

1800

1700

Dailies' Launch of 1600 restructuring Marseilleplus 1500 1997 1998 1999 2000 2001 2002

60 Compared Profitability of the French Regional Dailies' actors in 2002

10% 9% 8% 7% 6% 5% 4% (…) 3% 2% 1% (…) 0% HFM Ouest France Market's Average Dépêche Nouvelle Sud Ouest Le Progres Republique Voix Du Nord

61 Ratio EBITDA (without extraordinary items)/Turnover Source GGR 2002 Ratio of operating income on turnover in the HFM's Dailies and supplements since 1997

Operating Income / turnover (%)

10%

2% Mid-Term Target is 0% a 10% ratio -2%

-4%

-6%

-8% 1997 1998 1999 2000 2001 2002