INVESTOR DAYJune 1, 2006

Lagardère Media

2

Contents

What have we achieved so far? ---- p. 3 to 11

What next? -------------------------------- p. 12 to 25• Achieving 2007 margin targets• Accelerating top-line growth & market consolidation

2007-2012 growth guidance --------- p. 26 to 28

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What have we achieved so far?

Lagardère Media

4

• Reshaping the Group:- Refocusing on media activities, now completed with EADS exposure

reduced to 7.5% in April 2006- Exiting low profitability media activities: Printing, Grolier, Billboards,

Club Internet- Focusing on a few key leading positions: Books, Magazines,

Distribution, Radio, TV production - Increasing profitability & free cash flow

• Identifying future growth opportunities:- Market consolidation: under way in Books (Europe, US), in Magazines

(US, Europe, Asia), in Distribution (Europe)- Emerging markets (Russia, Eastern Europe, China): €775m revenues in

2005 (10% of total revenues)

- Development of digital: currently 3% of Lagardère Media revenues

• Building up an investment capacity of around €4bn from:- Cash-flow generation- Gains on divestments

Lagardère MediaLagardère Media has prepared for growth in recent years by:

5

Source: Lagardère Media

Lagardère Media: 75% of revenues generated by tier one national & international positions

Lagardere Media weighted average market share(in %)

Estimated annual market growth

(2005-2010)

Revenues (except HDS: gross profit)

HDSHFMHachette LivreLagardere Active

DistributionSpain

Virgin

Duty FreeFrance

Magazine France

MagazineUSA

MagazineJapan

MagazineSpainMag

Italy

MagUK

Books Spain

Books UK

Partworks

Books France

National distribution USA

Distribution Belgium and Switzerland-2%

0%

2%

4%

6%

Relay

Radio Eastern Europe

Distribution Eastern Europe

Radio France

TV production France

Cable and satellite TV France

Magazine Emerging markets VirginMega

France

0% 10% 20% 30% 40% 50%

6

Lagardère Media: Strong ROCE

Lagardère Media activities have the abilityto generate high levels of ROCE

• Books:- Trade France (excl. Editis acquisitions): +- Education France (excl. Editis acquisitions): +59%- Partworks: +49%

• Magazines:- Spain: +57%- France: +50%

• Distribution:- Relay: +

• LA Broadcast: +42%

∞

∞

7

Lagardère Media: improved operating leverage

Profitability and ROCE have improvedconsistently since 2002:

CAGR 02-05:

ROCE: +4.1% since 2002

• Revenues: +3.6%- Organic growth: +2.4%- Effect of acquisitions: +3.3%- Effect of divestments: -0.3%- Effect of exchange rates: -1.9%

• Operating income: +10.8%

8

Lagardère Media:A balanced portfolio of activities

2005 Recurring EBIT breakdown2002 Recurring EBIT breakdown

Books38%

Press

32%

Distribution21%

Audiovisual9%

Books25%

Press

47%

Distribution24%

Audiovisual4%

9

2002-2005: Acquisitions track record

Strict investment criteria with expected IRR risingto reflect risk level (excl. leverage)

Track record: a few highlights

• Editis: 1% to 2% above the expected IRR• Hodder Headline: 1% to 2% above the expected IRR• Newslink: higher than the expected IRR• Fujin Gaho: significantly higher than the expected IRR

• Recent transactions: - TWBG: trading ahead of expectations- Canal+ France: acquisition price at the low end of

market expectations

10

Lagardere TSR was one of the strongest in the industry

WH SmithTimeWarner

Comcast

GannetEMI M6 RCS

Tribune PearsonDirect TV

Disney

TF1 News Corp

Reuters

RTLEmap

ClearChannel

ElectronicArts

ReedMicrosoft

Thomson Mondadori

Mc GrawHill

Ebay

Amazon

Yahoo

Iliad (2)

Google(3)

(excluding internet pure players)(1) 01/01/02 - 12/30/05 (2) Iliad IPO: 1/29/04 (3) Google IPO: 8/18/04 Note: TSR = Annual total return of a stock to an investor during the period (capital gains; dividends (reinvested); free shares) Source: Bloomberg

Total Shareholder Return 2002-2005 (1)

(in %)

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%27% 44% 45% 84% 219%

11.6%

2002-2005: Total Shareholder Return

11

Lagardère Media

What have we achieved so far?

• International tier one positions in Books, Magazines, Distribution, Radio

• A business culture focused on improved profitability and delivery of strong ROCE

• A balanced asset portfolio• A successful asset portfolio management

12

What next?

• Achieving 2007 margin targets

• Accelerating top-line growth & market consolidation

- In traditional activities- In digital businesses

Lagardère Media

13

2005-2007: Margin targets

Lagardère Media will achieve its stated targets.By 2007, each division will be tier one in profitability terms.

Books

Press

Distribution Services

Audiovisual (*)

2005 2007

11.5%

8.7%

2.8%

8.7%

11.3%

11.7%

3.5%

8.9%

• Top-line growth inducing incremental EBIT margin

• Cost reduction programs

• Portfolio management

• Selective divestments

• Acquisition synergies

• Economies of scale

- Recurring EBIT as % of revenues -

(*) ex DTT costs

14

What will happen post 2007?

Two imperatives:

• Improve top-line growth• Continue to consolidate our markets worldwide

Lagardère Media’s 2006-2012 strategy

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Lagardère Media’s 2006-2012 strategyLagardère Media’s growth strategy is based on two drivers

• Continued investment in creativity and content(talent management)

• Selective and attractive consolidation of some segments (business/country)

• Selective growth in some emerging markets (Eastern Europe, Asia, Russia, Latin America)

These growth objectives are built upon Lagardère’s financial resources (about €4bn)

• Leverage on existing businesses (brands, content, networks)

• Development of new national digital businesses

• Selective investments (digital broadcast and other)

Increased developments in digital businesses

Growth in traditional activities

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2006-2012: Investment in creativity and contentExamples from 2004-2005

PressBooks AudiovisualDistribution

Services

• 40 new products p.a. (Partworks)

• Marabout, Mangas, audio books(Illustrated)

• Timoon (Youth TV production)

• Filles TV(channels)

• Licensing• Improving technical coverage and services (radio)

• Gourmet food: Australian Gourmet traveller, Godiva, etcConvenience stores: Hub, Relay services, Mini market, etcPress cafés: Relay café, Voyage café(Travel retail)

• New concepts with larger food/café offering: Journo, Café press, Inmédio café, etc (retail media andentertainment)

• Diversification in distribution

• Choc, Public and Guts(France)

• Shop (Holland)• Ana Rosa,

Nova (Spain)

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2006-2012: Market Consolidation (1/2)The segments in which Lagardère Media competes are still fragmented, leading to a trend towards consolidation

(1) Consumer magazines (2) Trade books(3) USA, France, UK, Germany, Italy, Spain, Japan (4) USA, UK, France, Spain (5) more than 1,000 competitors, average revenues: €30mSources: PriceWaterhouse Coopers, ZenithOptimedia, HFM, Hachette Livre, DDM, PPA Marketing, annual reports

Magazines (1)Magazines (1) Books (2)Books (2)

Weighted average market share

(in %)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Developedcountries (3)

Emergingmarkets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Developedcountries (4)

Emergingmarkets

47%

53%

Others(5)

Top 3

17%

83%

Others

Top 341%

59%

Others(5)

Top 3

20%

80%Others

Top 3

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PressBooks AudiovisualDistribution

Services

• USA Trade: €11.9bn / Lag ms: 3%

• Spain Trade: €1.3 bn / Lag ms: 7%

• UK Education: €0.8 bn / Lag ms: 7%

• UK Trade:€2.6 bn / Lag ms: 17%

•News & GiftEastern Europe:€0.4bn / Lag ms: 23%Germany:€0.5bn / Lag ms: 14%USA:€0.9bn / Lag ms: 3%

•NewsstandsEastern Europe:€1.8bn / Lag ms: 9%

•Press wholesaleEastern Europe:€0.7bn / Lag ms: 22%

•Duty FreeAsia:€3.4 bn / Lag ms: 0%

• USA:€24bn / Lag ms: 4%

• UK: €5bn / Lag ms: 3%

• Italy: €3bn / Lag ms: 9%

• Japan: €5bn / Lag ms: 3%

Lagardère Media consolidation options

Investment strategy• Gradual and step by step investments• Consistent with Lagardère Media's margins targets

2006-2012: Market Consolidation (2/2)

Books: publisher net sales, excluding professional books, including services in education; Press: circulation (retail sales) + advertising; Distribution Services: Eastern Europe: Poland, Hungary and Czech Republic; Asia: strong positions in news & gift in Singapore, Hong Kong and Australia; Audiovisual: radio; Eastern Europe: Poland and Czech Republic

• Eastern Europe:€0.1bn / Lag ms: 28%

• Russia: €0.1bn / Lag ms: 26%

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2006-2012: Growth in emerging markets (1/2)Emerging markets have started to catch up and now account for 10% of 2005 Lagardère Media revenues

- Developed countries -- Emerging markets* -

Annual market growth

(2005-2010)(in %)

0%

1%

2%

3%

4%

15%Books

Distribution

RadioMagazine

$4bn $3bn $17bn$1bnMarket size 2005 $36bn $148bn

Books

Distribution

Radio

Magazine

$30bn $50bn

*Emerging markets: Eastern Europe and Russia, China, India

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2006-2012: Growth in emerging markets (2/2)Examples of current positions and development options

PressBooks AudiovisualDistribution

Services

• Number 3 in Russia with a 9% market share

• Among top 3 players in women’s magazines in China

• Strong presence in specific segments in South America (Larousse andAnaya in Mexico, Aiqué in Argentina)

• Number 1 in Czech republic with a 33% market share

• Number 2 in Poland with a 26% market share

• Number 1 in Russia (Radio)

• Strong position in news & gifts in Poland, Hungary and Czech Republic with a 23% market share

• Number 1 in press distribution in Hungary with a 97% market share

• China• Russia• India

• Latin America• China• India• Eastern Europe

• Eastern Europe• North Africa• Asia

• Eastern Europe• Asia

Development options

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• Digital will bring:- improvements to existing business models

= facilitating access to our products rather than substitution

- incremental revenues at higher margin= new business models

• Digital revenues should grow from 3% in 2005 to 10% in 2010

Increasing Digital ExposureDigital Opportunities

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• Improving revenue growth with better product exposure:- Online book sales: biggest selection available 24/24- Digital Education Newsstand (KNE) facilitating teachers’ choices- Online magazine subscription: + 15,000 US subscribers- Radio program downloads: Europe 1- Advertising sales packages: performance based and multiplatform (LAP)

• Improving margins:- Reducing bricks & mortar costs

= printing, shipping, postal costs, broadcasting & video delivery costs, etc- Improving marketing tools and customer databases- Leveraging technological costs over a broader basis

Increasing Digital Exposure Improving existing business models

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A new generation of products…:

• VOD and Legal downloading: Virginmega.fr• Chanelling realtime content into magazines and books

- Daily content on Media Websites & Schoolastance sites- Triggering user-generated content

• Video everywhere- Magazine brands turned into TV: Public.tv- Radio turned into podcast: Europe 1 daily

• Global networking starting with ELLE: US- France- Asia• Mobile content: text, audio, video (Canal J on Canalsat Mobile)

Increasing Digital ExposureEntering New Business Models (1/2)

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… opening up new business models:

Increasing Digital ExposureEntering New Business Models (2/2)

MagazinesBooks Mobile contentRadio & TV

Advertising

Click through& SponsoringSubscription Pay Services

Circulation & Advertising

Single Unit Purchase

Europe 1 MobileCanal J on Canalsat Mobile

Experimenting:advertising,

pay per use, flat fees

Single Unit Purchase

addadd add add

Exa

mpl

es:

Schoolastance www.caranddriver.comDownloading on

www.MCM.frwww.Europe2.fr

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Existing digital developments

PressBooks AudiovisualDistribution

Services

• Education websites: KiosqueNumériqued’Education(KNE)

• Media websites: routard.fr, etc

• DTT: Gulli, Europe 2 TV, Canal J

• Legal down-loading and VOD: VirginMega.fr

• Media websites: Europe 1, Canal J

• Radio and Video podcasting:Europe 1, Canal J

• Mobile: MCM TOP, E1 Podcast news

• Digital distribution: hdsdigital

• Legal downloading and VOD: VirginMega.fr

• Digital magazines: Elle, Woman’s Day, Car and Driver

• Media websites: Car and Driver, Elle, Choc, Guts, etc

• Rich media: Public TV, etc

2006-2012: Leverage on existing businesses

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Lagardère Media

2007 – 2012 growth guidance

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2007-2012 growth guidanceLagardère Media will grow profitably by 6% - 8% CAGR over the next five years

2007 revenues

Emerging markets

2012 revenues

Organic growth in developed countries

Growth in digital activities

Acquisitions

6% to 8% CAGR

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2007-2012 growth guidanceLagardère Media’s objective is to improve profitability by 2007 and accelerate growth by 2012 (maintaining 2007 profitability)

2002

2005

2007

2012

2002-2005

2007-2012

3.8% per year

Between 6% and 8% CAGR, with a mix of organic growth and accretive acquisitions

Profitability increase

Profitability increase GrowthGrowth

Operating income(as % of revenues)

4.8%

6.4%

6.8%

>6.8%

Note: 2002 and 2003 French GAAP; 2004 to 2010: IFRS

Annual growth guidance will be fine-tuned in 2007 once margin targets have been achieved