MESSAGE FROM Arnaud Lagardère

We achieved our objectives in 2018, delivering revenue and recurring EBIT in line with our forecasts, as in previous years. This performance vindicates our strategy, which is now focused around two priority areas: Lagardère Publishing, our power engine, and Lagardère Travel Retail, our growth engine.

Today, we are among the world's leading companies in each of these sectors. This strategic refocusing helps give our Group a clearer, simpler and more coherent business profile. It also reflects our goal of enhancing our profitability, growth and ability to generate cash to finance our long-term development.

Paris Match, Le Journal du Dimanche, the Europe 1 radio station, Virgin Radio, RFM, the Elle licence and Lagardère Live Entertainment remain a part of the Group's business scope and are included within the "Other Activities" segment along with the Corporate functions of the Group and of Lagardère Active.

The Group has divested a large number of media assets, including international radio operations, most magazine publishing titles, and a number of digital activities. Exclusive negotiations are also in progress for the sale of the TV business. Regarding Lagardère Sports and Entertainment, we have begun the process to divest our sports division, as previously announced.

The proceeds from all of these disposals will obviously be reinvested first and foremost in Lagardère Publishing and Lagardère Travel Retail. The aim is to invest in businesses offering accretive operational synergies and to enable them to become a fixture among the global leaders in their respective segments. Mindful of this aim, we acquired publishing houses La Plage and Worthy Publishing Group, and entered into exclusive negotiations for the purchase of Gigamic, a creator, publisher and distributor of board games. We also carried out another key acquisition, purchasing Hojeij Branded Foods (HBF), a leading Foodservice travel retail operator in North America.

We gave fresh impetus to our corporate social responsibility (CSR) goals, with our efforts now focused on three areas: placing people at the heart of our strategy, supporting and anticipating social and environmental change, and ensuring ethical and responsible governance. Regarding ethical and responsible governance, amid increasing demands from our stakeholders and from regulators in France and across the globe, we remain firmly committed to the highest ethical standards in our business, with the roll-out of awareness-raising initiatives and specific procedures.

I would like to pay tribute to the women and men of our Group for the dedication and talent they show in their daily work. Their unwavering commitment is key to the success of our strategic refocusing.

And I would like to thank you, dear Shareholders, for your loyalty and your support. I am pleased to be able to recommend maintaining a stable dividend payout in step with our dynamic shareholder return policy.