0 FY net sales

2013 FY net sales Net sales for FY 2013: 7,216m, down 1.3% on a like-for-like(1) basis

Trends improved in Q4 for Lagard re Publishing and Lagard re Services divisions

2013 Recurring Media EBIT(2) increase expected slightly above 5%, exceeding the announced guidance

At years end, the Lagard re group benefited from improved trends in General Literature, Illustrated books, Partworks and Travel Retail, which posted fine performances. Offsetting this, an unfavourable calendar effect at Lagard re Active in Audiovisual Production and at Lagard re Unlimited is behind the decrease in sales in the fourth quarter for these two divisions.

In addition, the Lagard re group has pursued the deployment of its development strategy in high-growth business lines - in Travel Retail, acquiring fashion activities in Amsterdam Airport, and winning a bid in Warsaw Airport, and in TV Production, the acquisition of Groupe R servoir. These companies will be integrated in 2014.

Fourth-quarter 2013:

Net sales totalled 1,934 million, down 2.1% on a like-for-like basis (-4.2% on a reported basis). The difference between like-for-like and reported bases is related to a very negative currency effect due to the rise of the euro (- 45m, mainly at Lagard re Publishing and Lagard re Services). The scope effect is insignificant ( 2m).

To be noticed at Lagard re Services the continued unfavourable effect of the end of tobacco sales in Hungary, subsequent to a change in regulations in July 2013. Stripping out this factor, activity at Lagard re Services would be up 2.5% like-for-like for the fourth quarter, and the evolution for the Group as a whole would be reduced to -1%.

- Lagard re Publishing: activity up sharply at 6.7% on a like-for-like basis, thanks to good performance on almost all markets, in particular in the UK ( 12.6%), in France ( 2.6%) and in Partworks ( 25.1%).

- Lagard re Services: Travel Retail activity continued its growth trend ( 4.6% like-for-like), with improvement in all countries, specifically in the Travel Essentials segment. The contribution from Rome airports was very positive, in line with expectations. LS distributions activities improved sharply: stripping out the impact of the end of tobacco sales in Hungary, activity was virtually stable (-0.8%), a significant improvement over previous quarters.

- Lagard re Active: net sales of 309m, down 10.4% on a like-for-like basis, due mainly to the atypical delivery schedule of TV Production, concentrated in the first nine months of 2013. Stripping out this factor, trends were better in distribution and more difficult in advertising.

- Lagard re Unlimited: Net sales stood at 107m, down 26.8% on a like-for-like basis. Activity was as expected negatively impacted by a less-promising events calendar.

2013 Full year:

Net sales totalled 7,216 million, down slightly on a like-for-like basis (-1.3%), and on a reported basis ( 2.1%). The difference between reported and like-for-like figures is due essentially to a negative currency effect ( 112m on the pound sterling, the US dollar and the Australian dollar), partially offset by a positive scope effect ( 55m), related primarily to acquisitions in Travel Retail (Rome airports, DFS Wellington in Australia/New Zealand) and the LeGuide group.

I. GROUP NET SALES AND ACTIVITY

Net sales for the fiscal year ( m)

Reported

change 2013/2012

Like-for-like

change 2013/2012

2012 2013

LAGARD RE 7,370 7,216 -2.1% -1.3 %(1)

Lagard re Publishing 2,077 2,066 -0.5% 1.9%

Lagard re Services 3,809 3,745 -1.7% -0.9%(2)

Lagard re Active 1,014 996 -1.9% -3.8%

Lagard re Unlimited 470 409 -13.0% -13.6%

(1) -0.7% excluding end of tobacco sales in Hungary.

(2) 0.3% excluding end of tobacco sales in Hungary.

Net sales in Q4 (in m)

Reported

change

2013/2012 Like-for-like

change

2013/2012

Q4 2012 Q4 2013

LAGARD RE 2,018 1,934

-4.2%

-2.1%(3)

Lagard re Publishing 546 569

4,3 %

6,7 %

Lagard re Services 980 949

-3.2%

-0.2%(4)

Lagard re Active 342

309

-10.0% -10.4%

Lagard re Unlimited 150 107

-28.2%

-26.8%

(3) -1% excluding end of tobacco sales in Hungary.

(4) 2,5% excluding end of tobacco sales in Hungary.

> Lagard re Publishing 2013 was a very good year with net sales up 1.9% on a like-for-like basis, standing at 2,066m. Outstanding performances in General Literature in France, in the US, in the UK and in Partworks ( 15.4%) offset the expected decline in activity in Education in France and Spain. The negative currency effect was

- 54m, essentially on the pound sterling, the US dollar and the Japanese yen.

In France, activity was slightly up ( 0.8%), with a high increase in General Literature ( 13.3%) and Illustrated books, partially offset by the expected decrease in Education due to the end of renewal of school curricula.

In the US, activity is up 6%, driven by outstanding performance in General Literature as in the UK ( 1.5%).

Spain is impacted by the non-renewal of school curricula (as expected), in a context of economic crisis.

E-books represent 10.4% of the divisions sales in 2013 (vs. 7.8% in 2012). The digital transition remains for the time being essentially limited to the US and UK markets. In the US, in a stabilising market, Lagard re Publishing digital sales posted a strong increase ( 33%) on the back of numerous best sellers, and represents 30% of Trade(3) sales (vs. 24% in 2012). In the UK, where the market is still rising, e-book sales increases by 42% and represent 27% of Adult trade sales vs. 20% in 2012.

Fourth-quarter 2013:

Activity is up significantly ( 6.7% on a like-for-like basis and 4.3% on a reported basis), with the difference due to a negative currency effect of 18m.

This quarter was marked by an excellent performance in Partworks, Illustrated Books and

LINK:	http://www.lagardere.com/press-room/press-releases/press-releases-363....
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