First quarter 04 Net sales: ,56 million (-5.6% like-for-like())

First quarter 2014 Net sales: 1,526 million (-5.6% like-for-like(1)) Lagard re maintains its 2014 Recurring EBIT(2) target from Media activities

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Net sales for the first quarter of 2014 stood at 1,526 million, compared to 1,627 million in the first quarter of 2013, -6.2% on a reported basis, and -5.6% like-for-like.

The difference between reported and like-for-like was due to a currency effect (- 27 million) related to the decline in the Australian, American and Canadian dollars, partially offset by a positive scope effect ( 16 million), due mainly to acquisitions made by Lagard re Services in Schiphol Airport (Amsterdam) and, to a lesser extent, by Lagard re Active (Groupe R servoir).

By division:

- Lagard re Publishing: net sales of 393 million (-6.3% on a reported basis and -5.3% like-for-like). The drop in the first quarter of 2014 is due to the very high level of sales in the first quarter of 2013, (spectacular success of the Fifty Shades trilogy in France). Sales were stable compared with the first quarter of 2012.

- Lagard re Services: net sales of 858 million (-2.1% on a reported basis, -0.9% like-for-like). Excluding the impact of the end of tobacco sales in Hungary, activity rose 1.5%. Travel Retail was still growing ( 5.4% at constant exchange rates).

- Lagard re Active: net sales of 202 million (-8.9% on a reported basis and -10.7% like-for-like). The trend is largely due to a comparison effect in TV Production, following an exceptionally strong first quarter of 2013 ( 82.1% vs the first quarter of 2012). Excluding TV Production, the change in net sales was limited to -5.6%, due essentially to advertising being down -6.5%, while magazines circulation had a much smaller decrease this quarter, at -1.6%.

- Lagard re Unlimited: net sales of 73 million (-33% on a reported basis and like-for-like), as expected, in relation to the absence of the Africa Cup of Nations (ACN) and the shrinking of the Media rights trading business in Europe.

I. GROUP NET SALES AND ACTIVITY Net sales (in m) 2014/2013 Change

Q1 2013 Q1 2014 on a reported

basis like-for-like

LAGARD RE

1,627 1,526

-6.2%

-5.6%*

Lagard re Publishing

419 393

-6.3%

-5.3%

Lagard re Services

876 858

-2.1%

-0.9%**

Lagard re Active

222 202

-8.9%

-10.7%

Lagard re Unlimited 110 73

-33.0%

-32.9%

*-4.3%, excluding the end of tobacco sales in Hungary.

** 1.5%, excluding the end of tobacco sales in Hungary.

Lagard re Publishing

Performance marked by the Fifty Shades impact in first quarter of 2013.

In the first quarter of 2014, business was down -6.3% on a reported basis (-5.3% like-for-like), due mostly to the comparison effect with a first quarter 2013 that benefited from many best-sellers (specifically the Fifty Shades trilogy, which had sold 1.8 million copies in France). Sales were stable compared with the first quarter of 2012.

The difference between reported and like-for-like net sales was mainly due to a negative currency effect of 6 million, primarily associated with the US dollar and the rouble.

In France, business trend reflects the absence of the Fifty Shades effect in the first quarter 2013. This decrease is partially offset by the growth in Illustrated books.

In the English-speaking countries, business was down slightly due to a lower programme of titles and to some postponements of releases.

The variation of net sales of the Spain/Latin America zone (-8.6%) was marked by delayed orders in Education in Argentina, while Spain benefited from the beginnings of a recovery amid the improving economic environment.

Partworks continued its solid growth over all markets, at 10.9%, thanks to the success of launches in the second half of 2013 in Russia, Japan and France.

The momentum of e-books continued for Lagard re Publishing, which outperformed a stabilizing market. E-books now represent 13.4% of net sales for the division (vs. 12.4% in the first quarter of 2013). This is still concentrated in English-speaking countries, though in a mixed position:

- in the United States, Lagard re Publishings net e-book sales are now stabilising (34% of net Trade sales, as in the first quarter of 2013), in a market that is contracting slightly;

- in the United Kingdom, the e-book continued to grow, making up 40% of net sales in Adult trade(3) in the first quarter of 2014 (vs. 31% for the same period last year).

Note that the first quarter, excluding special publication programme, always represent a relatively low weight on the year as a whole.

Lagard re Services

Continued momentum in Travel Retail.

Net sales of the division stood at 858 million, down slightly (-2.1% on a reported basis and -0.9% like-for-like), with a very unfavourable currency effect this quarter of - 19 million (decline in the Australian and Canadian dollars), partly counterbalanced by a positive scope effect of 9 million, primarily related to the acquisition of Schiphol Airport (Amsterdam) fashion operations.

As in the 2nd half of 2013, the ban of tobacco sales in Hungary had a significant impact on sales. Without this item, growth in net sales for the division was positive ( 1.5% like-for-like).

Like-for-like, growth in Travel Retail ( 3.3%) continued and virtually offset the decrease in Distribution (-7.1% or -1.3% excluding the effect of the end of tobacco sales in Hungary).

Travel Retail now represents 61.8% of net sales for the division, vs. 59% in the first quarter of 2013.

LS travel retail: 3.3% on a like-for-like basis and 5.4% at constant exchange rate

Business is still being carried by growth in traffic, improved product mix, the development of Duty Free and Food Services networks, the modernisation of sales outlets and the development of new concepts.

However, the moment

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