Rcs Mediagroup

Earnings Release • Aug 3, 2016

RCS MediaGroup

First Half 2016 Results

Agenda

Highlights

Market & Business Trends

First Half 2016 Results

Business Units Backup

Q2 2016 Results – Key highlights

EUR million

Editorial Revenue

Other Revenue

3

1H 2016 Results – Key highlights

EUR million

Other Revenue

Editorial Revenue

Agenda

Highlights

Market & Business Trends

First Half 2016 Results

Business Units Backup

Italy: Advertising Trends

Advertising Gross Revenue, EUR million

	∆ (%)	∆ (%) 1H 16/1H 15
Market	+3.5%
Online (1)	-1.9%	+4.3%
Outdoor Radio	+2.3% +0.6%
Magazines	-3.0%	-1.5%
Newspapers	-4.9%	-3.8%
TV	+7.8%
Other (2)	-6.2%

1H 2015 1H 2016 TOTAL MARKET

6

(1) Excluding Search Adv

(2) Including: Cinema , Direct Mail ,Transit, Out of home TV RCS including third party Source: Nielsen Media Research

RCS

Spain: Advertising Trends

Advertising Gross Revenue, EUR million

	∆ (%)
Market	+3.8%
Cinema	+8.8%
Outdoor	-1.2%
Online	+16.1%
Radio	- 0.8%
Magazines	- 7.1%
(1) Newspapers	- 8.6%
TV	+8.1%

RCS

7 (1) Including special branded events referring to Unidad Editorial Unidad Editorial excluding third parties

TOTAL MARKET

Italy: Newspaper Circulation Trends

Circulation, copies/000 per day

Spain: Newspaper Circulation Trends

Circulation, copies/000 per day

Italy: Online Readership Million Users

Daily Unique Browsers (1) Monthly Unique Browsers -0.3% 1H 2016 39.7 1H 2015 39.8 -0.9% 2.6 1H 2016 2.6 1H 2015

Source: Nielsen Online – SiteCensus- Adobe Sitecatalyst

Spain: Online Readership

Million Users

Source: Omniture

Agenda

Highlights

Market & Business Trends

First Half 2016 Results

Outlook 2016 and Plan Progress

Business Units Backup

Q2 and 1H 2016 Results – Summary

EUR million
	Q2 2016		Q2 2015		∆ %	1H 2016		1H 2015		∆ %
Total Revenue	284.3	10 0 %	289.9	10 0 %	(1.9%)	504.1	10 0 %	519.3	10 0 %	(2.9%)
Circulation	98.6		107.7		(8.4%)	193.3		214.8		(10.0%)
Advertising	138.6		139.7		(0.8%)	236.0		236		0.0%
Other	47.1		42.5		10.8%	74.8		68.5		9.2%
EBITDA ex NR Items	43.6	15.3 %	27.2	9 .4 %	60.3%	40.2	8 .0 %	11.7	2 .3 %	>100%
Non Recurring Items	(1.8)	0 .0 %	(6.5)	0 .0 %		(2.1)	0 .0 %	(7.2)	0 .0 %
OPAS/OPA C osts	(4.2)		-			(4.2)		-
EBITDA	37.6	13 .2 %	20.7	7.1%	81.6%	33.9	6 .7%	4.5	0 .9 %	>100%
EBIT	23.8	8 .4 %	(29.9)	( 10 .3 %)	n s	6.3	1.2 %	(60.8)	( 11.7%)	n s
Net Result	19.9	7.0 %	(60.2)	( 2 0 .8 %)	n s	(2.1)	( 0 .4 %)	(95.4)	( 18 .4 %)	n s
Net Result ex OPAS/OPA	24.1	8 .5%	(60.2)	( 2 0 .8 %)	n s	2.1	0 .4 %	(95.4)	( 18 .4 %)	n s
NFP						(422.4)		(526.3)

Starting from 30 September 2015, the costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op.

13 Starting from the Financial Report as of 31 December 2015, net results of equity-accounted investees were classified before EBITDA.

Q2 and 1H 2016 Results – Profit & Loss

EUR million

EUR million
	Q2 2016		Q2 2015		∆ %
Circulation	98.6	34.7%	107.7	37.2%	(8.4%)
Advertising	138.6	48.8%	139.7	48.2%	(0.8%)
Other	47.1	16.6%	42.5	14.7%	10.8%
TOTAL REVENUE	284.3	100%	289.9	100%	(1.9%)
Operating costs	(171.5)	(60.3%)	(188.7)	(65.1%)	(9.1%)
Labour costs	(69.2)	(24.3%)	(74.0)	(25.5%)	(6.5%)
EBITDA ex Non Recurring Items	43.6	15.3%	27.2	9.4%	60.3%
Non Recurring Items	(1.8)	(0.6%)	(6.5)	(2.2%)	ns
OPAS/OPA Costs	(4.2)	(1.5%)	-
EBITDA	37.6	13.2%	20.7	7.1%	>100%
D&A	(13.7)	(4.8%)	(15.0)	(5.2%)
Writeoffs	(0.1)	(0.0%)	(35.6)	(12.3%)
EBIT	23.8	8.4%	(29.9)	(10.3%)	n s
Net financial incomes (charges)	(7.4)	(2.6%)	(10.6)	(3.7%)
PRE-TAX RESULT	16.4	5.8%	(40.5)	(14.0%)	n s
Taxes	(4.7)	(1.7%)	2.1	0.7%
NET RESULT FROM CONTINUING OPERATIONS	11.7	4.1%	(38.4)	(13.2%)	n s
Net Result from Discontinuing and Discontinued Op.	8.4	3.0%	(21.6)	(7.5%)
Minorities	(0.2)	(0.1%)	(0.2)	(0.1%)
NET RESULT	19.9	7.0%	(60.2)	(20.8%)	n s
NET RESULT ex OPAS/OPA	24.1	8.5%	(60.2)	(20.8%)	n s

IH 2016		IH2015		Δ%
193.3	38.3%	214.8	41.4%	$(10.0\%)$
236.0	46.8%	236.0	45.4%	0.0%
74.8	14.8%	68.5	13.2%	9.2%
504.1	100%	519.3	100%	(2.9%)
(323.9)	(64.3%)	(360.0)		$(69.3%)$ $(10.0%)$
(140.0)	(27.8%)	(147.6)	(28.4%)	$(5.1\%)$
40.2	8.0%	11.7	2.3%	>100%
(2.1)	(0.4% )	(7.2)	(1.4%)	ns
(4.2)
33.9	6.7%	4.5	0.9%	>100%
(27.5)	(5.5%)	(29.4)	(5.7%)
(0.1)	(0.0%	(35.9)	(6.9%)
6.3	1.2%	(60.8)	(11.7%)	ns
(15.3)	(3.0%)	(19.6)	(3.8%)
(9.0)	(1.8%)	(80.4)	(15.5%)	ns
(1.5)	(0.3%)	11.3	2.2%
(10.5)	(2.1%)	(69.1)	(13.3%)	ns
8.4	1.7%	(26.5)	(5.1%)
0.0	0.0%	0.2	0.0%
(2.1)	(0.4% )	(95.4)	(18.4%)	ns
2.1	0.4%	(95.4)	(18.4%)	ns

Starting from 30 September 2015, the costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op.

14 Starting from the Financial Report as of 31 December 2015, net results of equity-accounted investees were classified before EBITDA.

2014-2016 EBITDA Evolution by Quarter

Variance 1H 2016 vs 1H 2015 – EBITDA

Q2 and 1H 2016 Results – Breakdown Revenue & EBITDA

EUR million

	Q2 2016						Q2 2015
	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%
News Italy	100.4	13.8	13.7%	11.6	11.6%	111.9	11.4	10.2%	9.7	8.7%
News Spain	57.3	5.6	9.8%	5.6	9.8%	59.2	8.3	14.0%	3.3	5.6%
Sport	111.2	29.1	26.2%	28.7	25.8%	102.0	14.3	14.0%	14.8	14.5%
Other activities	15.4	(4.9)	n.s.	(8.7)	n.s	16.8	(6.8)	n.s.	(7.1)	n.s.
CONSOLIDATED	284.3	43.6	15.3%	37.2	13.1%	289.9	27.2	9.4%	20.7	7.1%
			1H 2016					1H 2015
	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%
News Italy	189.9	14.1	7.4%	11.6	6.1%	209.8	8.2	3.9%	6.3	3.0%
News Spain	105.0	3.3	3.1%	3.3	3.1%	108.7	4.7	4.3%	(0.4)	(0.4%)
Sport	181.0	31.6	17.5%	31.2	17.2%	171.6	12.1	7.1%	12.6	7.3%
Other activities	28.2	(8.8)	n.s.	(12.6)	n.s.	29.2	(13.3)	n.s.	(14.0)	n.s.

Representation as of management reporting

17 Advertising revenues and costs (including overhead costs) for the Italian advertising agency (limited to advertising collection related to RCS publishing ) have been allocated in the individual business units in the first half 2016 and consistently in in the first half of 2015.

Balance Sheet

EUR million

		30/06/2016 31/12/2015
Net fixed assets	718.4	139.2%	745.0	125.9%
Tangible Intangible fixed & assets	521 1	100 9%	539 9	91 2%
Financial fixed assets	197 3	38 2%	205 1	34 7%
Net working capital	(47.7)	(9.2%)	(64.2)	(10.8%)
Reserve for risk and charges	(115.5)	(22.4%)	(115.6)	(19.5%)
Employee termination indemnity	(39.0)	(7.6%)	(40.1)	(6.8%)
Net invested capital: assets held for sale	-	0.0%	66.8	11.3%
CAPITAL EMPLOYED	516.2	100.0%	591.9	100.0%
Net financial debt (cash) total	422.4	81.8%	486.7	82.2%
of which financial debt (cash) of held for sale Net assets	0 0	0 0%	(44.2)	(7.5%)
Equity	93.8	18.2%	105.2	17.8%
EQUITY & NFP	516.2	100.0%	591.9	100.0%

1H 2016 Cash Flow

EUR million

Agenda

Highlights Market & Business Trends

First Half 2016 Results

Business Units Backup

News Italy – P&L	Verticals	TV
News
		Sfera

EUR million

	1H 2016	1H 2015	YoY
Circulation	80.0	91.7	(12 8%)
Advertising	94.2	103.1	(8 6%)
Other	15.7	15.0	4 7%
TOTAL REVENUE	189.9	209.8	(9 5%)
add O/W on	17 9	24 2	(26 0%)
EBITDA ex NR Items	14.1	8.2	72 0%
EBITDA % NR ex	7 4%	3 9%
Non Recurring Items	(2.5)	(1.9)
EBITDA	11.6	6.3	84 1%

News Spain –		P&L
--------------	--	-----

News Verticals & other

EL ‡ MUNDO	PAPEL	V DONA tuera "serie BEL SIBLE XXI
Expansión	TELVA	қ\т>рқ(); (); 1
	SIETE LEGUAS	ACTUALIDAD ECONOMICA

EUR million

	1H 2016	1H 2015	YoY
Circulation	41.6	47.1	(11 7%)
Advertising	53.1	52.5	1 1%
Other	10.3	9.1	13 2%
TOTAL REVENUE	105.0	108.7	(3 4%)
add O/W on	1 7	1 9	(10 5%)
EBITDA ex NR Items	3.3	4.7	(29 8%)
EBITDA % NR ex	3 2%	4 3%
Non Recurring Items	0.0	(5.1)
EBITDA	3.3	(0.4)	>100%

Representation as of management reporting

23 Events represented here are not an exhaustive list and refer to a selection of events in current portfolio of RCS Sport and Last Lap

Disclaimer

Investor Relations Department

+39 02 2584 5508 Federica.demedici@rcs.it Federica De Medici

Forward-looking Statements

Statements contained in this document, particularly the ones regarding any RCS MediaGroup possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties.

RCS MediaGroup actual results and developments may differ materially from the ones expressed or implied by the following statements depending on a variety of factors. Any reference to past performance of RCS MediaGroup shall not be taken as an indication of future performance.

This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned in any jurisdiction and is directed to professionals of the financial community.

Riccardo Taranto, the Manager responsible for drawing up the company's accounting statements, hereby declares, pursuant to article 154-bis, paragraph 2 of the "Testo Unico della Finanza" (Legislative Decree n. 58/1998), that the information contained in this presentation corresponds to those one contained in the group's documents and books accounting records.