Rcs Mediagroup

Earnings Release • Mar 22, 2016

RCS MediaGroup

FY 2015 Results

Milan, March 22nd, 2016

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

2015 FY Results – Guidance achieved

Agenda

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

Italy: Advertising Trends

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

Italian Advertising Trends: Market & RCS

Advertising Gross Revenue, YoY %

6

Source: Nielsen Media Research - Online excluding Search Adv

Spain: Advertising Trends

Advertising Gross Revenue, EUR million

	∆ (%)		∆ (%) 2015/2014
Market	+5.8%
Cinema Outdoor	+25.1% +3.4%
Online	+12.3%	+10.3%	+11.5%
Radio	+7.8%
Magazines	+0.1%	-6.9%	-6.9%
(1) Newspapers	+0.5% o/w +9.1% Local -5.0% National	-6.1%	-5.0%
TV	+6.9%

TOTAL MARKET 2015 2014

Spanish Advertising Trends: Market & RCS

Advertising Gross Revenue, YoY %

* Ex Sport Events

8

** Including special branded events referring to Unidad Editorial Source: Arce Media and internal estimates for National Newspapers

Italy: Newspaper Circulation Trends

Circulation, copies/000 per day

Spain: Newspaper Circulation Trends

Circulation, copies/000 per day

Digital editions included Sources: OJD

10

(2)

2014

2015

2015 2014

Source: Nielsen Online – SiteCensus- Adobe Sitecatalyst

Spain: Online Readership

Million Users

Daily Unique Browsers (1)

Source: Omniture

Agenda

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

FY 2015 Results – Summary

EUR million

	Q4 2015		Q4 2014		∆ %	2015		2014		∆ %
Total Revenue	289.1	10 0 %	293.3	10 0 %	(1.4%)	1032.2	10 0 %	1065.1	10 0 %	(3.1%)
Circulation	97.0		111.8		(13.2%)	420.9		446.2		(5.7%)
Advertising	148.0		149.8		(1.2%)	475.5		491.3		(3.2%)
Other	44.1		31.7		39.1%	135.8		127.6		6.4%
EBITDA ex NR Items	53.1	18 .4 %	52.5	17.9 %	1.1%	71.8	7.0 %	60.7	5.7%	18.3%
Non Recurring Items	(42.5)	0 .0 %	(5.8)	0 .0 %		(55.4)	0 .0 %	(32.8)	0 .0 %
EBITDA	10.6	3 .7%	46.7	15.9 %	n s	16.4	1.6 %	27.9	2 .6 %	(41.2%)
EBIT	(33.0)		18.5			(107.0)		(51.9)
Net Result	(49.3)		(17.7)			(175.7)		(110.8)
NFP						486.7		482.5

14 In 4Q15 and in FY15 costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op. In 4Q14 and in FY14 this Financial Statement item has been restated to take into account to the Books activities results and also the IGP Decaux and Finelco Group results. Starting from this Financial Report as of 31 December 2015, net results of equity-accounted investees were classified before EBITDA and in 2014 have been reclassified for comparison.

Q4 & FY 2015 Results

15

Q4 & FY 2015 Results
								∆ %
								(5.7%)
								(3.2%)
								6.4%
								(3.1%)
								(4.3%)
								(1.5%)
								(41.7%)
	0.4%		0.1%		0.2%		(0.1%)	ns
53.1	18.4%	52.5	17.9%	71.8	7.0%	60.7	5.7%	18.3%
(42.5)	(14.7%)	(5.8)	(2.0%)	(55.4)	(5.4%)	(32.8)	(3.1%)	ns
10.6	3.7%	46.7	15.9%	16.4	1.6%	27.9	2.6%	(41.2%)
(15.4)	(5.3%)	(16.1)	(5.5%)	(59.3)	(5.7%)	(58.9)	(5.5%)
(28.2)	(9.8%)	(12.1)	(4.1%)	(64.1)	(6.2%)	(20.9)	(2.0%)
(33.0)	(11.4%)	18.5	6.3%	(107.0)	(10.4%)	(51.9)	(4.9%)
(8.7)	(3.0%)	(9.9)	(3.4%)	(34.9)	(3.4%)	(40.7)	(3.8%)
0.2	0.1%	(0.5)	(0.2%)	(1.4)	(0.1%)	(2.4)	(0.2%)
(41.5)	(14.4%)	8.1	2.8%	(143.3)	(13.9%)	(95.0)	(8.9%)
(0.3)	(0.1%)	(7.4)	(2.5%)	7.9	0.8%	5.5	0.5%
(41.8)	(14.5%)	0.7	0.2%	(135.4)	(13.1%)	(89.5)	(8.4%)
(5.1)	(1.8%)	(17.5)	(6.0%)	(38.8)	(3.8%)	(20.9)	(2.0%)
(2.4)	(0.8%)	(0.9)	(0.3%)	(1.5)	(0.1%)	(0.4)	(0.0%)
(49.3)	(17.1%)	(17.7)	(6.0%)	(175.7)	(17.0%)	(110.8)	(10.4%)
	Q415 97.0 148.0 44.1 289.1 (167.8) (66.4) (3.0) 1.2	33.6% 51.2% 15.3% 100% (58.0%) (23.0%) (1.0%)	Q414 111.8 149.8 31.7 293.3 (164.8) (69.7) (6.7) 0.4	38.1% 51.1% 10.8% 100% (56.2%) (23.8%) (2.3%)	2015 420.9 475.5 135.8 1,032.2 (673.4) (280.7) (8.8) 2.5	40.8% 46.1% 13.2% 100% (65.2%) (27.2%) (0.9%)	2014 446.2 491.3 127.6 1,065.1 (703.7) (285.0) (15.1) (0.6)	41.9% 46.1% 12.0% 100% (66.1%) (26.8%) (1.4%)

In 4Q15 and in FY15 costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op. In 4Q14 and in FY14 this Financial Statement item has been restated to take into account to the Books activities results and also the IGP Decaux and Finelco Group results. Starting from this Financial Report as of 31 December 2015, net results of equity-accounted investees were classified before EBITDA and in 2014 have been reclassified for comparison.

2013-2015 EBITDA Evolution by Quarter

EBITDA ex non recurring items

16 2013 figures are proforma excluding RCS Libri figures. 2014 adjusted after Books disposal with the adoption of the amendment to IFSR 5

Variance 2015 vs 2014 – EBITDA

Q4 and 2015 Results – Revenue & EBITDA

EUR million

18

			Q4 2015					Q4 2014
	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%
Media Italy	137.6	33.4	24.3%	21.2	15.4%	147.6	34.4	23.3%	32.4	22.0%
Media Spain	95.3	20.6	21.6%	(7.2)	(7.6%)	101.0	22.1	21.9%	21.0	20.8%
Advertising & Events	106.5	2.8	2.6%	2.5	2.3%	93.7	1.4	1.5%	1.1	1.2%
Corporate and Other Activities	21.9	(5.1)	(23.3%)	(7.3)	(33.3%)	22.3	(6.2)	(27.8%)	(8.5)	(38.1%)
Others and eliminations	(72.2)	1.4	n.s.	1.4	n.s.	(71.3)	0.8	n.s.	0.7	n.s.
CONSOLIDATED	289.1	53.1	18.4%	10.6	3.7%	293.3	52.5	17.9%	46.7	15.9%

			2015					2014
	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%
Media Italy	517.4	65.3	12.6%	52.1	10.1%	531.9	61.8	11.6%	60.4	11.4%
Media Spain	330.0	29.4	8.9%	(9.2)	(2.8%)	358.1	27.3	7.6%	(0.5)	(0.1%)
Advertising & Events	344.9	4.3	1.2%	3.3	1.0%	345.5	(0.6)	(0.2%)	(1.7)	(0.5%)
Corporate and Other Activities	75.7	(27.7)	(36.6%)	(30.3)	(40.0%)	78.0	(28.3)	(36.3%)	(30.8)	(39.5%)
Others and eliminations	(235.8)	0.5	n.s.	0.5	n.s.	(248.4)	0.5	n.s.	0.5	n.s.
CONSOLIDATED	1,032.2	71.8	7.0%	16.4	1.6%	1,065.1	60.7	5.7%	27.9	2.6%

In 4Q15 and in FY15 costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op. In 4Q14 and in FY14 this Financial Statement item has been restated to take into account to the Books activities results and also the IGP Decaux and Finelco Group results. Starting from this Financial Report as of 31 December 2015, net results of equity-accounted investees were classified before EBITDA and in 2014 have been reclassified for comparison.

2015 Results – Revenue & EBITDA

		2015			2014
	Revenue	EBITDA ex Non Recurring Items	Ebitda ex NR %	Revenue	EBITDA ex Non Recurring Items	Ebitda ex NR %
Media Italy	517.4	65.3	12.6%	531.9	61.8	11.6%
Media Spain	330.0	29.4	8.9%	358.1	27.3	7.6%
Advertising & Events	344.9	4.3	1.2%	345.5	(0.6)	(0.2%)
Advertising	285 5	(5 0)	(1 8%)	297	(5 9) 4	(2 0%)
RCS Sport	59 4	9 3	15 7%	48	1 5 3	11 0%
Corporate & Other Activities	75.7	(27.7)	(36.6%)	78.0	(28.3)	(36.3%)
Corporate Functions	38 2	(18 7)	(49 0%)	37	(23 4) 1	(63 1%)
Sfera	27 6	(3 1)	(11 2%)	30	(1 8) 4	(5 9%)
New Business	9 9	(5 9)	(59 6%)	10	(3 1) 5	(29 5%)
Other & Eliminations	(235.8)	0.5	n s	(248.4)	0.5	n s
CONSOLIDATED	1,032.2	71.8	7.0%	1,065.1	60.7	5.7%

Ebitda ex NR %	Revenue	EBITDA ex Non Recurring Items	Ebitda ex NR %

Balance Sheet

	31/12/2015		31/12/2014
Net fixed assets	745.0	125.9%	878.2	116.2%
Tangible Intangible fixed & assets	539 9	91 2%	652 4	86 4%
Financial fixed assets	205 1	34 7%	225 8	29 9%
Net working capital	(64.2)	(10.8%)	53.4	7.1%
Reserve for risk and charges	(115.7)	(19.5%)	(159.3)	(21.1%)
Employee termination indemnity	(40.1)	(6.8%)	(53.7)	(7.1%)
Net invested capital: assets held for sale	66.8	11.3%	36.9	4.9%
CAPITAL EMPLOYED	591.9	100.0%	755.5	100.0%
Net financial debt (cash) total	486.7	82.2%	482.5	63.9%
financial debt (cash) related Net continuing operations to	530 9	89 7%	482 5	63 9%
financial debt (cash) of held for sale Net assets	(44 2)	(7 5%)	-	-
Equity	105.2	17.8%	273.0	36.1%
EQUITY & NFP	591.9	100.0%	755.5	100.0%

Agenda

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

Outlook 2016 - confirmed the first year objectives of the 2016-2018 Business Plan

2016 First Highlights - KPI

Advertising revenue: higher than 2015 both in Italy and Spain, better than Plan 1

• Circulation revenue: mixed trends across brands 2
• Costs efficiencies: Q1 effect in line with 40-45 million yearly target 3
• Paywall subscriptions: more than 30K, already exceeding FY 2016 target 4
• 5 EBITDA: more than 25% of total year improvement
• 6 Books disposal: closing expected by mid April

2016 EBITDA Progress

2016 First Highlights – Other Plan Actions

Costs efficiencies 1

• External costs: identified and activated all initiatives planned
• Labor costs:
• FTE reduction in Italy (Working time reduction with Trade Unions agreement)
• Trade Unions consultations opening soon in Spain

Launch of metered Paywall on Corriere della Sera 2

New organizational set-up: 3

• simplified through elimination/ rationalization of some business areas (Sfera,…) and through integration of Italy & Spain
• aligned with strategy
• Printing facilities saturation: agreement signed with other newspaper (Il Manifesto), other opportunities under evaluation 4
• Gazzetta TV: closure of DTT channel and new editorial TV project on web 5
• Veo TV: new lease contract signed and disposal negotiation ongoing 6

New organizational set-up

Unidad Editorial CEO to retain solid or dotted lines on Spanish activities Specific aggregation and reporting lines to be communicated in coming weeks Procurement also providing Operations guidelines/ framework agreements

New organization chart

New segments reporting in line with Group's vision

Media Italy

• Corriere della Sera System
• Gazzetta System
• Verticals
• Digicast

Media Spain

• El Mundo System
• Marca System
• Expansion System
• Verticals
• Events Last Lap
• Other

Advertising & Events

• Advertising RCS publishing
• Advertising 3rd party publishers
• Sport Events RCS Sport

Corporate & Other

• Corporate Functions
• Sfera
• New Business

Old segment reporting New segment reporting

News Italy

• Corriere della Sera System
• Verticals
• Digicast
• Sfera

News Spain

• El Mundo System
• Expansion System
• Verticals
• Other

Sport

• Gazzetta System
• Marca System
• International Sport events & formats (RCS Sport + Last Lap)
• International audience

Other activities

• Group shared services
• Advertising 3rd party publishers

2015 results by new segments

		2015			2015
Old segment reporting	Revenue	EBITDA	New segment reporting	Revenue	EBITDA
Media Italy • Corriere della Sera System • Gazzetta System • Verticals • Digicast	517.4	65.3	News Italy • Corriere della Sera System • Verticals • Digicast • Sfera	416.7	37.5
Media Spain • El Mundo System • Marca System • Expansion System • Verticals • Events - Last Lap • Other	330.0	29.4	News Spain • El Mundo System • Expansion System • Verticals • Other Sport • Gazzetta System	220.2 332.1	16.4 37.8
Advertising & Events • Advertising RCS publishing • Advertising 3rd party publishers • Sport Events - RCS Sport	344.9	4.3	• Marca System • International Sport events & formats (RCS Sport + Last Lap) • International audience
Corporate & Other • Corporate Functions • Sfera • New Business	(160.1)	(27.2)	Other activities • Group shared services • Advertising 3rd party publishers	63.2	(19.9)
	1,032.2	71.8		1,032.2	71.8

Agenda

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

Agenda

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

• BU old segments
• BU new segments

Media Italy – P&L

	4Q15	4Q14	YoY	2015	2014	YoY
Circulation Advertising	63.0 64.9	72.8 66.5	(13 5%) (2 4%)	282.9 209.7	287.8 219.5	(1 7%) (4 5%)	advertising on-line 23%
Other TOTAL REVENUE add O/W on	9.7 137.6 19 2	8.3 147.6 23 8	16 9% (6 8%)	24.8 517.4 78 2	24.6 531.9 77 1	0 8% (2 7%)
EBITDA ex NR Items	33.4	34.4	(2 9%)	65.3	61.8	5 7%
Non Recurring Items	(12.2)	(2.0)		(13.2)	(1.4)
EBITDA	21.2	32.4	(34 6%)	52.1	60.4	(13 7%)

Media Spain – P&L

EL O MUNDO			MA KEA			Expansión
PAPE!		TELVA			Last Lap
	қ\т \ р{()?() ы		SIETE LEGUAS	CTUALIDAD ECONOMICA		tuera $-$ de $\widetilde{\mathsf{sepre}}$

	4Q15	4Q14	YoY	2015	2014	YoY
Circulation Advertising Other	33.5 50.6 11.2	38.4 51.3 11.3	(12 8%) (1 4%) (0 9%)	137.7 151.8 40.5	158.0 156.7 41.4	(12 8%) (3 1%) (2 2%)	advertising on-line 29.3%
TOTAL REVENUE add O/W on	95.3 1 1	101.0 1 0	(5 6%)	330.0 3 8	356.1 2 5	(7 3%)
EBITDA ex NR Items	20.6	22.1	(6 8%)	29.4	27.3	7 7%
Non Recurring Items	(27.8)	(1.1)		(38.6)	(27.8)
EBITDA	(7.2)	21.0	ns	(9.2)	(0.5)	ns

Advertising & Events – P&L

	4Q15	4Q14	YoY	2015	2014	YoY
Advertising and Events	91.1	91.0	0 1%	285.5	297.5	(4 0%)
publishing O/W RCS	72 9	74 0		231 6	248 0
3rd publishers party	15 9	15 8		47 2	45 9
Sport Events	15.4	2.7	n.s.	59.4	48.0	23 8%
TOTAL REVENUE	106.5	93.7	13 7%	344.9	345.5	(0 2%)
EBITDA ex NR Items	2.8	1.4	100 0%	4.3	(0.6)	n.s.
Non Recurring Items	(0.3)	(0.3)		(1.0)	(1.1)
EBITDA	2.5	1.1	127 3%	3.3	(1.7)	n.s.

Agenda

Highlights

Market & Business Trends

FY 2015 Results

Outlook 2016 and Plan Progress

Business Units Backup

• BU old segments
• BU new segments

News Italy – P&L	Verticals	TV
News
		Sfera

	2015
Circulation	175.8
Advertising	207.1
Other	33.8
TOTAL REVENUE	416.7
EBITDA ex NR Items	37.5
EBITDA % NR ex	9 0%
CapEx	(19.7)
EBITDA - CapEx	17.8

News Spain – P&L
News	Verticals & other

	2015
Circulation	91.7
Advertising	110.8
Other	17.6
TOTAL REVENUE	220.2
EBITDA ex NR Items	16.4
EBITDA % NR ex	7 4%
CapEx	(3.3)
EBITDA - CapEx	13.1

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.