ACTIVITIES IN 2011

• Send

2011 OVERVIEW AND 2012 PRIORITIES

DAG RASMUSSEN Chairman and Chief Executive Officer, Lagardère Services

In 2011, Lagardère Services expanded its network of upscale duty-free shops by winning new airport concessions, making acquisitions in the Czech Republic and New Zealand, extending Société de Distribution Aéroportuaire's contracts on a long-term basis and acquiring 50% of Duty Free Paris, a fashion concession operator. Both these companies are joint ventures with Aéroports de Paris. In 2012, Lagardère Services will continue its expansion strategy in Europe, Middle East and Africa (EMEA), Asia-Pacific and North America in all segments of this promising market, in both airports and train stations, with a view to increasing its market shares in News & Convenience, Duty Free & Luxury and Food & Beverage. In 2012, like last year, the division's distribution companies will continue to implement a diversification strategy in Europe and North America by seeking to forge commercial and industrial partnerships in new product and service lines, while maintaining and strengthening their leading positions in their traditional markets.

2011 KEY EVENTS

A sustained international presence in Travel Retail

The subsidiaries of LS travel retail continue to test new marketing concepts by opening new retail outlets and renewing various concession contracts in travel hubs.

Relay is the leading international newsagents chain, offering travellers an extensive range of leisure products and services to make their travel experience more enjoyable.

LS travel retail has operations in 130 airports worldwide and runs duty-free shops (fashion, perfume, food, alcohol, tobacco, etc.) in Europe, North America and Asia-Pacific under the Aelia brand.

In addition to its own brands (Buy Paris Duty Free in partnership with Aéroports de Paris, Beauty Unlimited, Pure and Rare, Gourmand, Sunny Days, Men's Lounge, The Fashion Gallery, etc.) and its franchises (Virgin, Fnac, Hermès, Hédiard, etc.), LS travel retail also operates an in-flight sales service for upscale brands on behalf of various airlines.

It also operates new retail outlets in the fast food segment in partnership with international (Costa Coffee, Paul) and local groups (Panos, Mr Baker, Empik Café), or under its own banners (Trib's, Hubiz).

With Travel Retail accounting for 53% of net sales, Lagardère Services is a major player in this industry and intends to strengthen its positions rapidly.

Press Distribution and local outlets

A world leader in national press distribution, Lagardère Services is number one in the United States, Belgium, French-speaking Switzerland, Spain and Hungary. Companies in the LS distribution division serve convenience store chains and some provide an additional range of products and services: Lapker in Hungary with almost 12,000 retail outlets, SGEL in Spain (21,000 retail outlets), AMP in Belgium (6,000 retail outlets) and Naville in Switzerland.

In addition, LS distribution is also developing its own convenience stores under various brand names, providing consumers with press products and and other services: Inmedio in Hungary, Poland, Czech Republic and Romania, BDP in Spain, Press Shop in Belgium and Naville in Switzerland.

Curtis Circulation Company , the leading national magazine distributor in North America with a 33% market share, operates a chain of independent wholesalers and manages sales of the magazines it represents for the largest retail chains.

In Spain, SGEL is the top national press distributor with a 47% market share.

Lagardère Services is a leading importer and exporter of international publications, with operations in nine countries (Belgium, Bulgaria, Canada, Spain, the United States, Hungary, the Czech Republic, Romania, and French-speaking Switzerland).