Lagardere Sa · EURONEXT:MMB
Lagardere Sa — Investor Day (June 2017)
67 slides from Lagardere Sa's investor day presentation, Jun 12, 2017
Slide 1: Investor Day
INVESTOR DAY Paris, 12th June 2017
Slide 2: Agenda
AGENDA Introduction How does publishing live up to investors' expectations? Why us? What next ? 2
Slide 3: Hachette Livre has become the world #3 private-sector consumer book publisher
WITHIN THE LAST DECADE, HACHETTE LIVRE HAS BECOME THE WORLD #3 PRIVATE-SECTOR CONSUMER BOOK PUBLISHER Hachette Livre revenue Growth fuelled by acquisitions - 2003-2016, €M - CAGR 2016 +7% 2,264 2015 2014 2013 2012 2011 (100%) 959 2010 2009 2008 (60%) 2007 2006 2003 2016 2005 Ranking in the worldwide
Slide 4: Hachette Livre has delivered solid profits and healthy cash flows
HACHETTE LIVRE HAS DELIVERED SOLID PROFITS AND HEALTHY CASH FLOWS Hachette Livre recurring EBIT - 2003-2016, €M - 301 239 246 250 220 221 223 223 198 208 Typical 173 189 197 225 190 margin range 107 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Hachette Livre cash flow (after
Slide 5: Agenda: Content creation is and will remain a growth industry
AGENDA Introduction How does publishing live up to investors' expectations? • Why invest in a content-oriented company? Content creation is and will remain a growth industry • Why publishing vs another media? Why us? What next ? 5
Slide 6: Entertainment and education are fundamental and sustainably growing needs
ENTERTAINMENT AND EDUCATION ARE FUNDAMENTAL AND SUSTAINABLY GROWING NEEDS Consumption of entertainment Education of population worldwide 5% 92% 80 90% 70 4% Annual GDP growth 88% Global population growth 60 86% 84% 50 3% 82% 40 80% 2% Annual growth of consumer 30 78% entertainment spend 76% Global s
Slide 7: Innovation allowed content to thrive, leading to today's profusion in entertainment offering
INNOVATION ALLOWED CONTENT TO THRIVE, LEADING TO TODAY'S PROFUSION IN ENTERTAINMENT OFFERING Innovation milestones shaping entertainment 1895-1950 1950-1990s 2000s - Today 1895 1950 2001 2010 First film by the Arrival of 1st Launch of iTunes & Launch of Netflix's Lumière brothers color TVs the 1st i
Slide 8: Successful content can reach worldwide audiences
SUCCESSFUL CONTENT CAN REACH WORLDWIDE AUDIENCES Book industry Other content industries - Unit sales worldwide - - Top 2010-2017 - The girl on the train 2Bn 1.7Bn 1.5Bn ~20M Cinema (Gross revenue, USD) Millenium trilogy ~80M 586M 556M 507M "50 shades" series Singles ~125M (# of Spotify streams) Twil
Slide 9: The race for content acquisition is on!
THE RACE FOR CONTENT ACQUISITION IS ON! Annual Netflix investments in content production & acquisition 6 blockbusters produced - $M - since 2015 5,850 600 hours of original content produced in 2016 CAGR +68% 3,848 3,116 Co-production of 2,564 2,406 latest Europacorp / L. Besson movie Valérian Creati
Slide 10: Sustainability of need for education is supported by demographics
SUSTAINABILITY OF NEED FOR EDUCATION IS SUPPORTED BY DEMOGRAPHICS Number of K121 students - since 2009, millions of students - CAGR +0.8% CAGR CAGR +1.1% +0.5% 8.4 8.6 8.1 8.1 8.1 8.2 8.2 8.3 7.9 8.0 8.1 8.1 8.1 12.4 12.4 12.6 12.6 12.7 12.7 7.6 7.8 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012
Slide 11: Entry of new players demonstrates attractiveness of the education sector
ENTRY OF NEW PLAYERS DEMONSTRATES ATTRACTIVENESS OF THE EDUCATION SECTOR Examples of new players - Education Market - 11
Slide 12: Agenda: Publishing has the most attractive financial profile
AGENDA Introduction How does publishing live up to investors' expectations? • Why invest in a content-oriented company? • Why publishing vs another media? Publishing has the most attractive financial profile Why us? What next ? 12
Slide 13: Commonalities can be found between all content industries
COMMONALITIES CAN BE FOUND BETWEEN ALL CONTENT INDUSTRIES All content industries… …have to compose with talent in limited quantity … deal with artists and their agents … cherry-pick projects … are prototype industries: each project is unique … work with a return on investment approach … need to leve
Slide 14: Publishers are the irreplaceable link between authors and readers
PUBLISHERS ARE THE IRREPLACEABLE LINK BETWEEN AUTHORS & READERS Foresee trends Optimize profits Sales Management from production to Copyright sales Detect talent Sub- rights Protection Financials (Advance) Acquisition/assignments Editing (Agent) Promotion & Author Fact Negotiate contracts Sales auth
Slide 15: Publishing has a lower-risk industry profile (1/2)
PUBLISHING HAS A LOWER-RISK INDUSTRY PROFILE… (1/2) Comparison of industry profiles - Main features - Publishing Film industry • Multiple houses within groups, hedging individual • Consolidated groups, sensitive to a single firm's performance performance • Numerous projects • Few projects at end of
Slide 16: Publishing has a lower-risk industry profile (2/2)
PUBLISHING HAS A LOWER-RISK INDUSTRY PROFILE… (2/2) Comparison of industry profiles - Illustrations - Publishing Film industry … in two developed trade markets €4Bn market with over 100,000 titles1 $1.6Bn generated by 654 films1 $24Bn market with over 300,000 titles2 $11Bn generated by 708 films1 …
Slide 17: ...Which leads to stable margins
… WHICH LEADS TO STABLE MARGINS Margin rates per industry - 2003-2016, worldwide content activities1 - 40% 2 30% 20% 10% 0% 40% 30% 20% 10% 0% -10% 40% 30% 20% 10% 0% -10% -20% 40% 30% 20% 10% 0% -10% -20% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1. If not stated otherwi
Slide 18: The music industry collapse resulted from late digital transition
THE MUSIC INDUSTRY COLLAPSE RESULTED FROM LATE DIGITAL TRANSITION Music physical vs. digital sales and device penetration - 1997-2016, $Bn, % of US households equipped - 1 2 3 No adequacy Growing between Late & sub-optimal digital market hardware development of Paid subscriptions and legal offer bus
Slide 19: Publishers have taken proactive actions to succeed in the digital migration
PUBLISHERS HAVE TAKEN PROACTIVE ACTIONS TO SUCCEED IN THE DIGITAL MIGRATION Music Publishing Pricing Control over ebook prices Leverage of content to boost devices & services sales ! to maintain margins across value chain Business model Debundling leading to sales No debundling or drop ! "Pay as
Slide 20: Agenda: Why us?
AGENDA Introduction How does publishing live up to investors' expectations? Why us? Hachette Livre is the most balanced, diversified and resilient publishing group Hachette Livre develops a clear strategy and has a strong track record of delivery What next? 20
Slide 21: Hachette Livre owns a constellation of famous brands everywhere in the world
HACHETTE LIVRE OWNS A CONSTELLATION OF FAMOUS BRANDS EVERYWHERE IN THE WORLD Hachette Livre's brands - A selection - Source: Hachette Livre 21
Slide 22: Editorial has been kept local, while strategic vision is global
EDITORIAL HAS BEEN KEPT LOCAL, WHILE STRATEGIC VISION IS GLOBAL LOCAL MARKETS Deep understanding of customer expectations Healthy competition between publishing Houses Boutique-style creativity GLOBAL VISION Provide strategic vision and direction Monitor and promote technological changes
Slide 23: Hachette Livre has deployed a leadership strategy in attractive markets
HACHETTE LIVRE HAS DEPLOYED A LEADERSHIP STRATEGY IN 4 ATTRACTIVE MARKETS Ranking by country of presence - 2016 - Trade Education Distribution Partworks #1 #1 #1 #2 #2 #2 #1 Canada Russia Taiwan Japan Mexico Peru Brazil Chile #3 #3 #2 Argentina South Africa Australia New Zealand #41 #3 1. Considerin
Slide 24: Balanced portfolio across geographies and market segments
HACHETTE LIVRE IS THE ONLY MAJOR PUBLISHER WITH A BALANCED PORTFOLIO ACROSS GEOGRAPHIES AND MARKET SEGMENTS Breakdown of HL revenue by country of destination Breakdown of HL revenue by activity - 2016, €M, % - - 2016, €M, % - 2,264 2,264 Other Partworks Others 11% 1% 17% France 28% Distribution Spai
Slide 25: Unique model allows it to linearize regional and business cycles
HACHETTE LIVRE'S UNIQUE MODEL ALLOWS IT TO LINEARIZE REGIONAL AND BUSINESS CYCLES Evolution of Hachette's sub-segment revenue1 - 2013-2016, % YoY variation - 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% Trade France Trade UK Trade Spain Trade USA Partworks Education Education UK Education Distribution Total
Slide 26: Unique model allows it to linearize regional and business cycles
HACHETTE LIVRE'S UNIQUE MODEL ALLOWS IT TO LINEARIZE REGIONAL AND BUSINESS CYCLES Evolution of Hachette's sub-segment revenue1 - 2013-2016, % YoY variation - 100,0% Size effect of the acquisition of Rising Stars by Hodder Education 80,0% 60,0% 40,0% 20,0% 0,0% Trade France Trade UK Trade Spain Trade
Slide 27: Unique model allows it to linearize regional and business cycles
HACHETTE LIVRE'S UNIQUE MODEL ALLOWS IT TO LINEARIZE REGIONAL AND BUSINESS CYCLES Evolution of Hachette's sub-segment revenue1 - 2013-2016, % YoY variation - 100,0% Size effect of the acquisition of Rising Stars by Hodder Education 80,0% 60,0% 40,0% 20,0% 0,0% Trade France Trade UK Trade Spain Trade
Slide 28: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 29: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 30: Trade markets are more or less flat in core geographies
TRADE MARKETS ARE MORE OR LESS FLAT IN HACHETTE LIVRE'S CORE GEOGRAPHIES Trade market total net sales evolution - 2012-2015, Trade, Home sales only, Print+Digital, €Bn / $Bn / £Bn - CAGR +0.5% CAGR CAGR +1.9% -0.6% 14.89 14.38 14.70 15.12 2.14 2.11 1.23 1.19 2.07 2.10 1.17 1.12 2012 2013 2014 2015 2
Slide 31: Penetration of book reading declines slightly, heavy readers still the majority
WHILE PENETRATION OF BOOK READING DECLINES SLIGHTLY, HEAVY READERS STILL ACCOUNT FOR THE MAJORITY OF VOLUME Proportion of readers1 in French population Book readers and share of read books - 1981-2014, France, in % of 15yr+ population - - 2014, France, % of readers pop2, % of books read - -4 pts Est
Slide 32: Best-sellers are still strong contributors, but top never exceed 15% of sales
BEST-SELLERS ARE STILL STRONG CONTRIBUTORS, BUT TOP 10 NEVER ACCOUNT FOR MORE THAN 15% OF SALES Adult hardback book sales - 2016, # of titles, print, millions of units - All literature Fiction Sample size: 14,078 titles 30 Sample size: 5,640 titles 30 25 Sales in volume 25 80% Sales in volume 20 80%
Slide 33: eBooks are declining in mature geographies
eBOOKS ARE DECLINING IN MATURE GEOGRAPHIES eBook penetration in Trade markets - 2009-2015, Trade, % of sales in value - Current eBook sales drop in the 21.4% 20.6% 20.7% US and the UK due to: 17.9% 17.2% 15.1% 15.5% 15.7% 1 12.5% Peaking device penetration 6.2% 5.8% 2.1% 1.3% 1.5% 1.7% 1.3% 0.6% 0.5
Slide 34: Digital has introduced new rules to the game
DIGITAL HAS INTRODUCED NEW RULES TO THE GAME Other key digital trends in Trade • Growing share of online sales, with Amazon holding a leading position • Copyright under pressure – Development of Google Books (supported by the Supreme Court, rejecting the Authors' Guild appeal in April 2016) – Europe
Slide 35: Hachette Livre has successfully ridden the digital wave
HACHETTE LIVRE HAS SUCCESSFULLY RIDDEN THE DIGITAL WAVE Main initiatives launched by Hachette Livre • Hachette Digital, engaging with readers through digital channels – Website factory: best-in-class online presence for our publishers and authors, performance monitoring 2,000,000+ 80+ • Cross-channe
Slide 36: Deep backlist is key to revenue and profitability
HACHETTE LIVRE DEEP BACKLIST IS KEY TO ITS REVENUE & PROFITABILITY Hachette Livre Trade revenue breakdown - 2016 - ~31,000 titles ~40,000 titles ~22,000 titles 37% 40% 33% 63% 60% 67% ~4,700 titles ~4,000 titles ~1,500 titles Backlist – Titles published before 1st January 2016 Frontlist – Titles pub
Slide 37: Hachette Livre publishes ~17,000 new titles every year
HACHETTE LIVRE PUBLISHES ~17,000 NEW TITLES EVERY YEAR, OF WHICH ~12,000 TITLES IN TRADE A selection of Hachette Livre’s 2016 trade frontlist Fiction & Non Fiction Illustrated & Reference NICHOLAS DAVID JK KES MIKE SPARKS BALDACCI ROWLING GRAY HORN PASSEPORT STEPHEN GUINESS ELLA JAMES JOEL HIRO KING
Slide 38: Editorial teams innovate constantly, with remarkable success
HACHETTE LIVRE'S EDITORIAL TEAMS INNOVATE CONSTANTLY, WITH REMARKABLE SUCCESS Examples of growth areas identified by Hachette Boxes "Simplissime" "Art Therapy" • Huge success of cook book • Phenomenal success of Art Therapy • 450k copies sold in France alone Coloring Books in France, the UK, the • 1
Slide 39: High-value licenses and franchises with considerable growth potential
HACHETTE LIVRE OWNS HIGH-VALUE LICENSES AND FRANCHISES WITH CONSIDERABLE GROWTH POTENTIAL Licenses Astérix Enid Blyton • All rights controlled by Editions Albert René, owned by Hachette Livre • One of the best-known writer of • Strong expertise in the publication of • 352M comic books sold worldwide
Slide 40: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 41: Education is a cyclical market
EDUCATION IS A CYCLICAL MARKET Publishing market total net sales evolution - 2012-2015, Education, Home sales only, Print+Digital, €Bn / £Bn / €Bn - Education markets CAGR CAGR +5.6% CAGR • Cash intensive: Players must have the ability to -3.6% 0.71 0.0% mass produce up front 0.63 0.68 0.68 0.86 0.8
Slide 42: Hachette Livre bases its competitive positioning on strong assets
HACHETTE LIVRE BASES ITS COMPETITIVE POSITIONING ON STRONG ASSETS Hachette Livre's edge on Education markets Proven Strong Renowned Multi-language ability to Financial multi-local brands Know-how anticipate capacity presence changes • #1 in France, • Served by • Knowledge of local • Ability to susta
Slide 43: Emerging practices are likely to transform education markets
EMERGING PRACTICES ARE LIKELY TO TRANSFORM EDUCATION MARKETS Emerging educational practices Trends 1 Away from "one size fits all" Personalization Adaptive learning, artificial intelligence 2 Increase students' engagement & enrich Gamification & interactivity knowledge delivery Video content 3 Measu
Slide 44: Digital penetration grows more slowly than expected
DESPITE MARKET APPETITE, DIGITAL PENETRATION GROWS MORE SLOWLY THAN EXPECTED Share of digital in K12 sales Delaying factors - % of total revenue, 2015 - • Historically low budget for digital content and digital 13.7% equipment leading to Budget & –Lack of hardware in schools Equipment –Lagging conne
Slide 45: Hachette Livre is ready to ride the digital wave
HACHETTE LIVRE IS READY TO RIDE THE DIGITAL WAVE • Enriched and interactive eTextbooks, granular content, websites, and auto- corrective exercises paths / banks and augmented reality • Unified reader apps for digital resources with embedded libraries and teacher-specific Digital content features: Ed
Slide 46: Leveraging know-how in 3 major languages to extend international footprint
HACHETTE LIVRE IS PREPARED TO LEVERAGE ITS KNOW-HOW IN 3 MAJOR LANGUAGES TO EXTEND ITS INTERNATIONAL FOOTPRINT Hachette's recent acquisitions in Education & potential areas of expansion Rising Stars (acquired in 2015) • Specialized in Primary Education • Present in 8,000 schools in the UK • Distribu
Slide 47: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 48: Multi-polar, strategic and financially attractive distribution business
HACHETTE LIVRE OPERATES A MULTI-POLAR, STRATEGIC & FINANCIALLY ATTRACTIVE DISTRIBUTION BUSINESS Key facts & figures Distribution facilities • 1 site • ~7,000m² • ~12m books processed #1 in France #1 in the US • 2 sites1 • ~43,000m² each year • ~63m books processed each year • 4 sites • 100,000m² #2
Slide 49: The distribution business is constantly optimized
THE DISTRIBUTION BUSINESS IS CONSTANTLY OPTIMIZED Distribution optimization – Key initiatives Merger of the 2 New third party contracts Continuous efforts distribution centers signed in key territories: on the cost structure in the UK starting 2018/2019 Disney O. Jacob, Bayard Pearson Source: Hachet
Slide 50: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 51: Partworks combine artistic creation and scientific testing
PARTWORKS COMBINE ARTISTIC CREATION & SCIENTIFIC TESTING Key steps in the launch of a new partwork collection Mass-market Creation of an Testing & Tight operational intensive attractive product forecasting management advertising • Trend foresight • Round table panels • TV commercials • Monitoring of
Slide 52: Hachette Collections is the #2 global player in partworks
HACHETTE COLLECTIONS IS THE #2 GLOBAL PLAYER IN PARTWORKS 2016 ranking & key figures Countries of presence #2 Worldwide Germany United 27 countries Canada Kingdom Ireland Belgium Russia Switzerland Taiwan 12 languages France Spain Austria Romania Slovakia Japan Portugal Poland Mexico Italy Czech Rep
Slide 53: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 54: Organization relies on talented individuals and lean resource management
HACHETTE LIVRE ORGANIZATION RELIES ON TALENTED INDIVIDUALS AND LEAN RESOURCE MANAGEMENT Hachette Livre’s publishers: Pillars of our organization • Appointment of a new generation of publishers Joining forces & sharing best practices Lean organization • Adult, Children, Education Steering Groups • UK
Slide 55: Hachette Innovation Program
HACHETTE INNOVATION PROGRAM: A FAR-REACHING AND AMBITIOUS UNDERTAKING Machine Learning Foster creativity and Teacher empowerment Gamification innovation of & Student engagement Hachette Livre teams Adaptive Learning Anticipate major Video trends by active and global monitoring Test and learn T
Slide 56: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 57: Hachette Livre has proven its takeover expertise
HACHETTE LIVRE HAS PROVEN ITS TAKEOVER EXPERTISE Hachette Livre's after tax return on investment in acquisitions - 2016, % - • Acquisition in 1996 • Return on investment 15% • Acquisition in 2008 • Return on investment 14% • Acquisition in 2004 • Return on investment 9% • Acquisition in 2014 • Retur
Slide 58: Acquisitions generate significant synergies
ACQUISITIONS GENERATE SIGNIFICANT SYNERGIES Key synergies generated by acquisitions More volume for distribution and sales force, at marginal cost Centralization of back office functions enabling optimization of office space Optimization of production and shipping costs Source: Hachette Livre 58
Slide 59: Hachette Livre has delivered against 7 key objectives
OVER THE PAST YEARS, HACHETTE LIVRE HAS DELIVERED AGAINST 7 KEY OBJECTIVES 1 Grow our business in Trade, in the midst of a digital revolution 2 Strengthen & diversify our presence in Education 3 Keep investing in our Distribution business 4 Develop Partworks 5 Nurture publishing talent and creativit
Slide 60: Leading player of industry in social and environmental responsibility
HACHETTE LIVRE IS A LEADING PLAYER OF INDUSTRY IN TERMS OF SOCIAL & ENVIRONMENTAL RESPONSIBILITY Key actions Key actions - Social responsibility - - Environmental responsibility - Diversity based on gender, ethnicity Scope 3 carbon footprint assessment and disability every 3 years (France) All vendo
Slide 61: Agenda: What next?
AGENDA Introduction How does publishing live up to investors' expectations? Why us? What next ? Further strengthen innovation & digital reach Consolidate the industry 61
Slide 62: Hachette Livre's key assets going forward: a reminder
HACHETTE LIVRE’S KEY ASSETS GOING FORWARD: A REMINDER Publishing market Hachette Livre • Large & sustainable publishing market, with ever- rising innovation expectations • Global leading position, built upon the talent and creativity of editorial teams • Critical size needed & collection of prestigi
Slide 63: Time and spending taken off reading are nurturing growth in other content markets such as gaming
TIME AND SPENDING TAKEN OFF READING ARE NURTURING GROWTH IN OTHER CONTENT MARKETS SUCH AS GAMING Mobile Gaming1 market growth - 2011-2020f, worldwide, $Bn - CAGR +7.5% Gaming is now addressing the whole population: 18.4 17.6 16.5 • Male, 18-34 y.o. CAGR 15.2 +14.2% 14.0 Gamer in • Techy 12.8 the 200
Slide 64: Development in mobile gaming will allow Hachette Livre to benefit from digital growth
DEVELOPMENT IN MOBILE GAMING WILL ALLOW HACHETTE LIVRE TO BENEFIT FROM DIGITAL GROWTH, LEVERAGING ITS UNIQUE ASSETS 1 2 … growth potential in digital, notably Unique assets of Hachette Livre … in mobile • Unique expertise in creative process • Growing shift of entertainment and • Strong relationship
Slide 65: Hachette Livre now has a foothold in the mobile game market
HACHETTE LIVRE NOW HAS A FOOTHOLD IN THE MOBILE GAME MARKET Hachette Livre's acquisitions and/or equity ownerships • Founded in 2010, in the UK • Foundation of Brainbow (creator of • Founded in 2001, in France • 30+ mobile games, including Paper Peak) in 2012, in the UK • Specialized in competitive
Slide 66: Scale is an increasingly critical asset
SCALE IS AN INCREASINGLY CRITICAL ASSET Main advantages of scale Make up for flat market • Generation of growth in a context of stable / slightly declining markets • Financial capacity and flexibility, particularly important for bestselling authors / acquiring valuable licenses (children, illustrate
Slide 67: In a nutshell...
IN A NUTSHELL… The • Content creation, a lasting growth industry industry • The most attractive financial profile among content industries • The most balanced, diversified and resilient publishing group Our DNA • A clear strategy and a strong track record of delivery Our • Further strengthen innovat