1. Marco Polillo (marco.polillo@aie.it) Associazione Italiana Editori Corso di Porta Romana 108, Milan www.aie.it Italian publishing: export efforts in a difficult market.

2. Production.

3. 6.0% 16.8% 77.2% 81.1% 19.700 55,476 11.9% 7.2% 58,829 84.6% 8.5% 6.9% Book production figures. 213.2 million copies are printed and released onto the market every year. Number of titles on sale: 690,279 (2010; Source: IE) Source: AIE research office from Istat data 4,0024,071 3,300 6,574 4,991 15,200 44,970 49,767 1,200 19802000Present Children’sSchool Miscellaneous 77.2% 81.1%84.6% 19,700

4. Classics28011.5%44411.4% Adult fiction170570.0%2,36160.8% Detective/mystery2048.4%3128.0% Science fiction and fantasy 994.1%1554.0% Horror170.7%631.6% Erotica120.5%381.0% Romantic fiction903.7%2526.5% Poetry291.1%611.6% eBook figures by genre. +60.4% +42.2% +35.4% +42.0% +28.6% +56.7% 8,196 02_2011 Total Number of Italian eBooks in January 2010: 1,619. Source: AIE research office from IE data 321 2,436 662 407 1,309 5,135 515 3,885 897 578 1,684 7,559 Children’s / Children’s fiction Adult fictionGeneral non-fiction Practical non-fiction Specialist non-fiction Nov_2010Jan_2011

5. Reading: the potential market

6. Source: AIE research office from Istat (Multiscopo) and FEE data The number of readers of at least one book in the previous 12 months (population >6 years old) went from 39.1% in 1995 (23 million readers) to 46.8% (26.6 million): +15.7%. Despite the growth – and the consequent expansion of the potential market – Italy is still the smallest "domestic" market of the large publishing markets in Europe: France, 70% (> 15 years old, 2008), Spain 55.1% (2009); Germany (80%; of whom 45.0% read one book a month); etc.

7. Population aged over 6 56,664,000 The reading pyramid Readers of at least one book: 45.1% 25,546,000 Readers of 1-3 books: 20.3% 11,521,000 Readers of more than 12 books: 6.9% 3,883,000 Readers of 4-11 books: 17.9% 10,142,000 Base: Population aged over 6 reading at least one non-school book in the previous 12 months Source: AIE research office from Istat (Multiscopo) data

8. The market and the publishers.

9. * +2.9% +25.0% +2.3% * Includes digital products and services provided (refresher courses, magazine subscriptions, etc.) or special terms for the purchase of professional books. Breakdown of distribution channels: 2010. e-books; <0.1% Excludes 350 mln euro from piracy (photocopies; estimate) 3.408 bln euro Source: AIE research office Retail purchasing consortiums Online bookshops Bookshops Trade; 42.4% Adopted in schools; 19.6% Electronic publishing; 7.7% Databases; 2.9% Serials; 6.3% Collectibles; 4.7% VPC and book club; 5.7% Book exports; 1.2% b2b (libraries + special initiatives); 3.7% Other (non book, half price); 5.8% 78.2% 4.3% 17.5% 1

10. 1.324 1.399 1.446 1.26 1.28 1.3 1.32 1.34 1.36 1.38 1.4 1.42 1.44 1.46 200820092010 Total trade market in billions of euro (cover price) Figures for 2010 (trade channels). Source: Nielsen BookScan for AIE Var: +5.7% Euro Var: +3.4% +1.8% copies

11. 1,399 mln euro1,446 mln euro Var: +3.4% +1.8% Var: +5.7% +2.3% +25.0% +2.9 % Market: 2008-2009 trade channels /2 Source: Nielsen BookScan for AIE 17.6%17.5% 4.3% 78.9% 78.2% 2.5% 20092010 Retail purchasing consortiums Online bookshops Bookshops (chains + independent)

12. 41.0% 37.9% 3.5% 17.6% 37.9% 40.4% 4.3% 17.5% Var: +3.4% +2.9% +5.9% +25.0% -2.8% Euro 43.3% 36.0% 3.1% 17.5% +5.7% The trade channels: chain stores overtake bookshops / 3 Source: Nielsen BookScan for AIE 200820092010

13. 38.9% 15.1% 18.5% 15.7% 12.8% 37.2% 14.9% 19.9% 15.2% 13.4% Var: +4.7% -1.7% +5.0% +1.7% +0.5% +5.2 mln euro +6.6 mln euro * Excluding retail purchasing consortiums Euro 15.6% 18.4% 15.4% 12.9% Trade channels: + Children's & Young adults and Practical non-fiction: 2008-2010.* Source: Nielsen BookScan Italia 2008 2010 500000 600000 700000 800000 900000 Thousands Children’s & Young adults Specialist non-fiction Practical non-fiction General non-fiction Fiction 13.4% 15.2% 14.9% 37.2% 12.8% 15.7% 15.1% 38.9% 12.9% 15.4% 15.6% 18.4% 37.7%

14. 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 1000000 Thousands PaperbackHardcover 18.1% 81.9% 18.6% 81.4% Var: +2.9% +6.6% *Excluding retail purchasing consortiums Euro 20.3% 79.7% Var: -0.5% +10.6% The paperback gains ground: 2008-2010.* Source: Nielsen BookScan Italia 200820092010

15. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 P11 cum 2008P11 cum 2009P11 cum 2010 Thousands RestSmall publishers 88.3% 11.7% 13.0% 87.0% * The term "Small publishers" refers to publishers who exhibit at “Più libri più liberi” **Excluding retail purchasing consortiums Euro +2.1% +14.9% Var: +0.9% +6.1% Var: 13.5% 86.5% 2009-2010 small publishers* above average** / 5 Source: Nielsen BookScan for AIE 2008 20092010 In 2009/10 they “led“ the growth. They account for 13% of bookshop sales. Nielsen figures are similar to 2007 and 2008 figures from Libris.

16. 0 100,000 200,000 300,000 400,000 500,000 600,00 700,000 800,000 900,000 1,000,000 Thousands RestSmall publishers 90.2% 9.8% 10.6% 89.4% Euro +3.7% +2.3% Var: 9.7% 90.3% +0.5% +11.4% Var: 2009-2010 small publishers* without the new "big names" in the book trade** / 5 * The term "Small publishers" refers to publishers who exhibit at “Più libri più liberi”. It does not include Newton Compton and Fazi **Excluding retail purchasing consortiums Source: Nielsen BookScan for AIE 200820102009

18. The increasing role of exports. Source: AIE from ICE-Doxa figures for 2001-2007; 2008-2010 AIE estimates from publishers' data -3,600 -3,419 Historically, Italian publishers have kept an eye on what foreign houses publish: 00.0% of published titles are translated works (however, in the 1990s this figure was 23- 25%). Over the last decade, the capacity to sell publishing rights to foreign publishers has grown (+155%): fiction, children's books, photo/picture books, design, etc. +48% +155% 4,590 8,009 1,800 2,060 2,380 2,660 2,620 3,230 3,490 4,025 5,400 5,800 6,120 6,640 6,980 7,730 9,555 2001200220032004200520062007200820092010 SoldAcquired

19. Growth in children's books for export

20. Since 2001, the gap and differentiation between the sale and acquisition of publishing rights in children's publishing have gradually and constantly decreased. Between 2009 and 2010 the situation turned "positive" (+324 titles). The picture would be even stronger if figures for co-publishing (and publishing packages), graphic work and Italian illustrators working on the international market, etc. could be included. Sale and acquisition of rights. Source: AIE research office from ICE-Doxa figures for 2001-2007; 2008 and 2010 AIE research office Negative balance: -764 Positive balance: + 324

21. A growing number of titles starts out as books with possible international spread. This means new and different author policies (narrators, illustrators); graphic quality; co-publishing. Sale and acquisition of rights. * Il libro? Vale solo se tradotto?, Sole 24 Ore, 21.02.2010, pg. 29. Source: AIE research office from ICE-Doxa figures for 2001-2007; 2008 and 2010 AIE research office; Liber. Titles: new titles/rights sold % of all new titles whose rights have been sold

22. Italy Europe 65% export Asia 21% North America 4% 1,186 titles (+18%) 186 titles (+101%) 67 titles (+0%) Publishing areas where rights are sold (2010). Europe remains the main market for the sale of rights. Values in % and number of titles (2007/10). Central and South America 7% 128 titles (+83%) Asian markets, with a 21% share (14% in 2007), are currently the second region, widely overtaking North America; although starting figures were very low until a few years ago, their growth rates are extremely high. North America shows again the lowest growth rate: unchanged. Exchanges with Central and South America are on the increase: 7% of the market share (+83%) Source: AIE research office from figures supplied by publishers [70%] [5%]

23. 17.6% 5.6% 6.3% 2,8% 3.0% 4.6% 28.2% 8.2% 4.8% 7.2% 4.3% 7.4% Countries where rights are sold (2010). France Germany UK Portugal Spain Greece Scandinavia Poland Hungary Balkans Russia Other countries Source: AIE research office from figures supplied by publishers 19.0% Asia; 20.5% Middle East; 3.4% Central and South America; 7.1% North America; 3.7% Others; 0,2% Europe; 65.1%

24. Europe Asia North America Central and South America Other countries Comparison between large and small publishers (2010). Higher "transaction" costs, spread over a smaller number of titles in absolute terms, with fewer serials. Source: AIE research office from figures supplied by publishers 3.5% 5.8% 6.8% 10.7% 3.7% 2.9% 19.8% 14.9% 66.2% 65.7% Large Small independents