Nielsen Book Research, Nielsen Book International

International Markets: UK, IT and Spain Nielsen Book Research, Nielsen Book International

April 2018

BookScan International Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 2 Widespread growth across BookScan territories

Only UK and Spain decline in volume sales, but UK grew in value

-2.6%

+1.3%

+0.4%

-9.7%

+2.7%

+8.1%

+1.6%

-3.7%

+10.3% Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright All figures based on the BookScan Panel in each territory with differing coverage 3 International Markets by genre

Children’s includes Text, Non Fiction incl Trade & Specialist, all others are unclassified

100%

90% 24% 20% 24% 33% 38% 36% 80% 42% 46% 44% 70%

60% 37% 50% 57% 48% 43% 36% 31% 44% 40% 31% 34% 30% 20% 39% 27% 29% 10% 24% 26% 20% 23% 23% 22% 0% UK Ireland Italy Spain SA India AUS New Brazil Children's inc Text Zealand All Non Fiction

Fiction Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 4 Global Top 10 – with share of UK sales

UK Other territories Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 5 Copyright ©2012 The Nielsen Company. Confidential and proprietary. BookScan Global Market 2017 Nielsen Nielsen ISBNs: Value sales: Value sales: €183.1m (takes 18.8%) BookScan byFernando Unit sales: Unit sales: 11.28m (takes 17.8%) Volume: Volume: 63.5m ( Total Spain Total Spain market Value Sales: €10,468,814 393,981 – Unit sales: Unit sales: 458,969 Please Please Note: Top title: Patria Top 500 titles Aramburu € - this this panel 974.9m 974.9m ( AvPrice: does not - 9.7%) Irigoyen currently include significant a internet retailer - 7.7%) €15.34 – 10.000.000 15.000.000 20.000.000 25.000.000 30.000.000 5.000.000 SPAIN SPAIN Snapshot Spain Spain Genre Share by volume 0 All Fiction +0.3% 27.4% share All Non FictionAll Non - 27.9% 2.5% share All Children's incl All Children's - 18.0% 41.6% share text 6 Copyright ©2012 The Nielsen Company. Confidential and proprietary. Nielsen Nielsen BookScan Global Market 2017 Unit sales: Unit sales: BookScan Top title: bambine ribelli. 100 vite di donne Volume: Volume: 76.02m (+0.4%) Value*: Total Total Italy market 14,124,025 Numbers of ISBNs Unit sales: Unit sales: 307,444 Storie Storie della buonanotte per Top 500 titles straordinarie € 526,082 1.115m 1.115m (+3.1%) ** ** AllNonFiction includes, General, Specialistand Practical NonFiction *The actual price paid isNOT recorded in Italy, so ValueSales are Volume xList Price (takes (takes 18.4%) – 10.000.000 15.000.000 20.000.000 25.000.000 30.000.000 35.000.000 Italy Italy Snapshot 5.000.000 0 ItalyGenreby Share All Fiction All +1.5% 38.5% share volume Fiction** - All Non All 37.3% 3.7% share All Children's All excl text excl +5.2% 24.2% share 7

The UK Market Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 8 More money from fewer sales in 2017

2.6% decline in volume but 0.2% increase in value

195

190 Millionen 185 Volume 180

175

170 2013 2014 2015 2016 2017 £1.600

£1.550

Millionen £1.500

£1.450 Value £1.400

£1.350

£1.300

£1.250 Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 9 Consumer data shows the growing share from audiobooks in the UK

350

300

250

200 Audiobook Ebook 150 Print

100 Volume sales (millions)sales Volume

- 2012 2013 2014 2015 2016 2017

Children’s and Adult Non-Fiction with steady growth

Annual value sales for growing categories

£25

Millionen £20 Popular Science Children's General NF £15 MBS: General Self Improvement Careers & Success £10 Coping with Problems & Illness Vegetarian Cookery £5

£0

2013 2014 2015 2016 2017 Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 11 Generally prices up across all sectors in 2017

2017 had the highest ASP since records began.

FICTION TRADE NON-FICTION CHILDREN’S

£6.75 £6.90 £9.94 £10.42 £5.78 £5.87

£8,60 £8,40 Overall TCM: £8.39 £8,20 £8,00 £7,80 £7,60 £7,40 £7,20 £7,00 £6,80

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 12 Nielsen Consumer data shows that Audiobooks are bought more often by males while eBooks are bought to a higher extent by females

However, men have been increasing the share of purchasing of all formats year on year

55% Audiobook 45%

37% Ebook/app 63%

50% Hardback 50%

45% Paperback 55% Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 13 Books & Consumers data Adult Fiction

• Crime sales overtake General for the first time

50% • Volume % share of adult fiction

45% Crime & Thriller 40% General & Literary 35%

Romance & Sagas 30%

25% Science Fiction & Fantasy

20% Historical & Mythological

15% Graphic Novels

10% Short Stories & Anthologies

5% Horror & Ghost

0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Range from 74% taken by e-books to 16%

Romance Erotic Fantasy Crime/thriller SciFi Historical

Comics/graphic Sagas Horror/ghost General Classic novels

£25 Translated fiction value by Product Class

£20 Millionen Westerns Erotic Fiction

£15 Romance & Sagas Horror & Ghost War Fiction Historical & Mythological £10 Sci-Fi & Fantasy Short Stories & Anthologies Crime & Thriller General & Literary £5

£0 2012 2013 2014 2015 2016 2017

Trade Non-Fiction Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 18 Top 10 titles in Trade Non-Fiction 2017

1 2 3 4 5

INSERT INSERT INSERT INSERT INSERT 6 7 8 9 10

INSERT INSERT INSERT INSERT INSERT Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 19 Slight decline in 2017 but sales still above 2012 to 2015

£900 90 £800 80

£700 70 Millionen

Millions £600 60 £500 50 £400 40 £300 30 £200 20 £100 10 £0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Value Volume Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 20

Children’s Books Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 21 70% of the Children’s Market is held by 3 areas

Children’s Fiction accounts for more than a third of sales

Y2.1 Children's Fiction 3% 4% Y1.3 Picture Books 4% Y1.2 Novelty & Activity Books Y2.2 Young Adult Fiction 5% 36% Y4.0 Children's General Non-Fiction Y4.1 Children's General Interest & Leisure 9% Y1.1 Pre-school & Early Learning Y4.2 Reference & Home Learning

Y3.1 Children's Annuals 17% 18% Y4.4 Young Adult General Interest & Leisure Y2.3 Children's Comic Strip Fiction & Graphic Novels

Y4.3 Children's Dictionaries

Y6.0 Children's Maps & Atlases Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 22 Leading authors and brands in 2017

Despite decline, Harry Potter stayed on top

£16.9m £16.6m £14.9m £7.2m £6.0m

£5.0m £5.0m £4.6m £4.2m £3.9m Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright Copyright © 2017 The Nielsen Company. Confidential and proprietary. and Confidential Company. NielsenThe ©2017 Copyright 23 Mainstay Children’s Fiction Authors

Walliams, Rowling and Pichon have consistently grown since 2013 Annual sales for leading Fiction authors £18 David Walliams

£16 J. K. Rowling Millionen £14 Jeff Kinney

£12 Philip Pullman

Liz Pichon £10 Roald Dahl £8 Jacqueline Wilson £6 Rick Riordan £4 Enid Blyton

£2 Rachel Renee Russell

£0 Michael Morpurgo