GUY’S LAST MEMO?

I am writing to you today, as I am pleased to announce that we have completed the difficult, but necessary organisational restructuring of EMI and, having finalised our strategic planning, are entering a new phase of positive development and innovation across the business.

First, I am delighted to inform you that I have appointed Elio Leoni-Sceti as Chief Executive of EMI’s recorded music division.

Elio joins EMI from Reckitt Benckiser, the global consumer brands company, with £3 billion in sales and 10,000 staff, where he has been Executive Vice President, Europe.

During Elio’s stellar 16 year career with Reckitt Benckiser he led some outstanding brand successes and business turnarounds in the United States and across Europe. His career achievements and excellent leadership qualities are ideally suited to ensuring that EMI is a successful business and a strong creative partner for our artists.

Elio has the passion, drive and belief in the future of the music industry to realise the ambitions we all have for EMI. Elio joins at the right time to shape, drive and lead EMI to become the world’s most artist focused and consumer friendly music company.

Second, with Elio’s arrival as Chief Executive, I will step back to become Non Executive Chairman of EMI. I would like to thank you, and our artists, for your continued support and for your contribution to the positive results currently being achieved by our artists, in collaboration with EMI staff globally.

Elio, EMI’s board and I believe the potential that can be realised in this industry, for our artists and EMI, is massive. Music consumption is growing more than ever across the world and EMI is now poised to take the lead in ensuring our artists reach more consumers, are rewarded financially for their creativity, work in true partnership with EMI and are able to collaborate closely with our newly empowered staff to make the best possible decisions for their careers.

Third, I wanted to inform you that JF Cecillon and I have amicably agreed that he will step down from his executive positions as President, A&R Labels, International, and President, EMEA, at the end of this week. I would like to thank JF for his many contributions to EMI. He has nurtured great talent, both artistic and executive.

Billy Mann, EMI Music’s Chief Creative Officer based in New York, will assume the additional role of President, A&R Labels, International, assuming JF’s responsibilities for artist development in countries outside North America and the UK. With Nick Gatfield leading our A&R efforts in North America and the UK from the 15th of July, complemented by Billy Mann in the rest of the world, we have two strong, artist-driven talented executives who can help us move into a new phase of creativity and who can ensure we work in a collaborative partnership with our artists.

David Kassler will take over JF’s regional duties as President, Europe/Middle East/Africa, in addition to his other role of President, Global Artist Projects. Ashley Unwin will assume David Kassler’s former duties as President, UK and Ireland. Ashley, who has been interim President, A&R Labels, North America and UK, will step down from that role when Nick Gatfield joins EMI on the 15th of July. At EMI France, where JF was President and CEO, Nathalie Collin now moves into the lead management position there as Chairman, EMI Music France, reporting to David Kassler.

We all look forward to working with you over the coming year and to ensuring the success of your music.

With best wishes,

Guy Hands