03. EDUCATION, INFORMATION, AND ENTERTAINMENT IN TRANSFORMATION ANNUAL REPORT 2011 Santillana Quality and innovation at the service of education and culture Santillana celebrated its 50th anniversary in 2010. Founded in 1960 with the aim of providing a successful and innovative model for educational publishing, Santillana is today a global publishing group in Spanish and Portuguese. The group is present in almost all Spanish-speaking countries, where it is leader in education. Santillana is also a significant player in other lines of business such as general-interest publishing, as well as in Portugal, United Kingdom, Brazil and the United States. Over 2010 Santillana added 6,000 new titles to its catalog of 31,000 titles. Over the past fifty years, Santillana has built a cultural bridge between Spain and Latin America and has been instrumental in improving education. Santillana is committed to education and for three decades has sponsored school innovation awards and the annual events Spring Seminar and Monographic Education Week. Santillana Education Despite adverse economic conditions, Santillana in 2010 reported record results, thus consolidating the company as a leader in products for all levels of education. With operating income of 642.25 million euros (4.1% more than in 2009), the group reported EBITDA of EUR 166.35 million (+9.4%). This excellent result was in part thanks to the strong growth experienced in Latin America, which saw a 12% increase in revenue and 15.7% in EBITDA. Among those countries seeing significant growth were Brazil (+38.9%), Mexico (+20%), Chile (+17.3%) and Argentina (+7.1%). The quality of our publications and our attention to the needs of teachers, students and general readers have strengthened our national and international leadership. Moderna, our educational publishing house in Brazil since 2001, posted outstanding results, with net sales of 181 million euros, 37% more than in 2009. EBITDA reached 47 million euros (+50.7%). Moderna strengthened its lead in the private market, with an increase in sales of 42% compared to 2009. It now has a market share of 18% of business aimed at the state school sector, selling 27 million titles. For the language-teaching sector, it has been a good year, with revenues up by of 9.7% and EBIT up 17% compared to 2009. Richmond has improved its position in the market for English-language education, consolidating its international image. In the French-language sector in Spain, Santillana Français leads at all levels of education from primary (with a 37.8% market share), Secondary (38.1%), to Bachillerato, where it has more than a 50% share . In 2010 Santillana has accelerated its transformation into a technology and educational services company with 44