Rcs Mediagroup

Earnings Release • Aug 25, 2015

RCS MediaGroup

First Half 2015 Results

Milan, August 25, 2015

Agenda

Highlights

Market & Business Trends

First Half 2015 Results

Business Units Backup

1H 2015 Delivery Report

Profitability Continued improvement despite the tough comparison with last year

Efficiencies In line with FY15 target of € 56 M and with 3 year objective of € 220 M

Operating Cash Flow Continued positive trend with € 30 M improvement vs 1H 2014

Advertising Different pace across media & countries Market volatility continues

Books Board of Directors mandated CEO to proceed with the negotiation and the definition of contractual terms

Non Core Disposals Preliminary sale agreement reached for stake in Finelco Group Price set at € 21 M

Focus on Q2 & Q3 2015 Initiatives

MEDIA ITALY

NEWS

• Special initiatives for Expo (CasaCorriere, OrizzontiExpo)
• Enrichment of la Lettura (Sunday issue)
• Corriere della Sera : launch of new Digital Edition in September

SPORT

• Gazzetta TV : live events (e.g. Copa America) boost audience
• Special initiatives for Expo (Football Heroes)

ADV & SPORT EVENTS BOOKS

ADVERTISING

• Exclusive advertising collection for Warner Music Italia's YouTube channel

SPORT EVENTS

• 98th Giro d'Italia and Spring Classic cycling races
• Color Run: participation more than doubled
• New mass event format: 1st edition of Edenred Ekirun

MEDIA SPAIN

NEWS

• El Mundo: launch of new Sunday edition and Saturday cover price increase
• Expansión: reached #1 in Comscore economics and financial information sites

SPORT

• Redesign of Marca.com
• Relaunch of Marca Motor magazine and site

• Successful branded sport events (Cycling, Running, MTB, Cliff Diving)

• Strong Q2 titles, high potential launches and Armani book global launch in Q3

• Reopening of New York Rizzoli bookstore on July 27
• Education: positive performances in adoption of school textbooks

1H 2015 Digital Revenue

6 (2) % on trade books Agenda

Highlights

Market & Business Trends

First Half 2015 Results

Business Units Backup

Advertising Trends: Italy vs Spain

Advertising Gross Revenue, 1H 15/1H 14 %

Online excluding Search Adv Source: Nielsen Media Research and Arci Media

Italian Advertising Trends: Market & RCS

Advertising Gross Revenue, YoY %

Online excluding Search Adv Source: Nielsen Media Research *Ex Sport Events & Special Initiatives

Italy: Advertising Trends

Spain: Advertising Trends

Italy: Newspaper Circulation Trends Circulation, copies/000 per day

Source: Nielsen Online – SiteCensus- Adobe Sitecatalyst

Spain: Newspaper Circulation Trends Circulation, copies/000 per day

1H 2014 1H 2015

1H 2014 1H 2015

(1) Includes newspapers with circulation > 80,000 copies Sources: OJD (2) Digital editions included

1H 2014 1H 2015 30 28 12 1H 2015 -4.8% Digital 42 12 40 1H 2014 +2%

Million Users

Spain: Online Readership

Agenda

Highlights

Market & Business Trends

First Half 2015 Results

Business Units Backup

1H 2015 Results – Summary

	Q2 2015		Q2 2014		∆%	1H 2015		1H 2014	(1)	∆%
Total Revenue	335.4	100%	348.2	100%	(3.7%)	591.9	100%	611.1	100%	(3.1%)
Circulation	153.1		153.3		(0.1%)	287.2		288.1		(0.3%)
Advertising	139.7		149.7		(6.7%)	236.0		250.8		(5.9%)
Other	42.6		45.2		(5.8%)	68.7		72.2		(4.8%)
EBITDA ex NR Items	27.4	8.2%	24.8	7.1%	10.5%	5.1	0.9%	(4.2)	(1.2%)	>100%
Non Recurring Items	(7.0)		(8.1)			(8.1)		(25.0)
EBITDA	20.4	6.1%	16.7	4.8%	22.2%	(3.0)	(0.5%)	(29.2)	(4.8%)	ns
EBIT	(46.5)		(5.1)			(85.5)		(65.1)
Net Result	(60.2)		(16.1)			(95.4)		(70.0)
NFP						(526.3)		(518.2)

Q2 & 1H 2015 Results

EUR million	Q215		Q214		1H15		(1) 1H14		∆%
Circulation	153.1	45.6%	153.3	44.0%	287.2	48.5%	288.1	47.1%	(0.3%)
Advertising	139.7	41.7%	149.7	43.0%	236.0	39.9%	250.8	41.0%	(5.9%)
Other	42.6	12.7%	45.2	13.0%	68.7	11.6%	72.2	11.8%	(4.8%)
TOTAL REVENUE	335.4	100%	348.2	100%	591.9	100%	611.1	100%	(3.1%)
Operating costs (ex non recurring costs)	(224.6)	(67.0%)	(241.7)	(69.4%)	(419.4)	(70.9%)	(444.1)	(72.7%)	(5.6%)
Labour costs (ex non recurring costs)	(79.8)	(23.8%)	(78.0)	(22.4%)	(159.1)	(26.9%)	(161.8)	(26.5%)	(1.7%)
Writedowns	(2.6)	(0.8%)	(2.9)	(0.8%)	(5.2)	(0.9%)	(7.0)	(1.1%)	(25.7%)
Provisions	(1.0)	(0.3%)	(0.8)	(0.2%)	(3.1)	(0.5%)	(2.4)	(0.4%)	29.2%
EBITDA ex Non Recurring Items	27.4	8.2%	24.8	7.1%	5.1	0.9%	(4.2)	(0.7%)	>100%
Non Recurring Items	(7.0)	(2.1%)	(8.1)	(2.3%)	(8.1)	(1.4%)	(25.0)	(4.1%)	ns
EBITDA	20.4	6.1%	16.7	4.8%	(3.0)	(0.5%)	(29.2)	(4.8%)	ns
D&A	(16.4)	(4.9%)	(14.9)	(4.3%)	(31.7)	(5.4%)	(29.0)	(4.7%)
Impairment writeoffs	(50.5)	(15.1%)	(6.9)	(2.0%)	(50.8)	(8.6%)	(6.9)	(1.1%)
EBIT	(46.5)	(13.9%)	(5.1)	(1.5%)	(85.5)	(14.4%)	(65.1)	(10.7%)
Net financial income (charges)	(9.4)	(2.8%)	(10.6)	(3.0%)	(18.3)	(3.1%)	(20.9)	(3.4%)
Gain (losses) on financial assets/liabilities	(7.9)	(2.4%)	0.0	0.0%	(8.1)	(1.4%)	0.0	0.0%
Income (charges) from equity investments	0.5	0.1%	(1.3)	(0.4%)	0.7	0.1%	(1.7)	(0.3%)
PRE-TAX RESULT	(63.3)	(18.9%)	(17.0)	(4.9%)	(111.2)	(18.8%)	(87.7)	(14.4%)
Taxes	2.2	0.7%	1.4	0.4%	14.5	2.4%	13.9	2.3%
Net Result from Discontinuing and Discontinued Op.	1.1	0.3%	(0.6)	(0.2%)	1.1	0.2%	3.4	0.6%
Minorities	(0.2)	(0.1%)	0.1	0.0%	0.2	0.0%	0.4	0.1%
NET RESULT	(60.2)	(17.9%)	(16.1)	(4.6%)	(95.4)	(16.1%)	(70.0)	(11.5%)

2013-2015 EBITDA Evolution by Quarter (1)

EUR million

√ 8 consecutive quarters of YoY improvements

2013 figures were restated further to the adoption of the amendment to IFRS 10 and IFRS 11 related to the perimeter of consolidation.

Variance Q2 2015 EBITDA*

• √ 13M € increase in Q2 2015 vs Q2 2014 when adjusted for:
• Sport Events
• Corriere della Sera and Gazzetta dello Sport's special editions
• Gazzetta TV launch and start-up costs

Q2 and 1H 2015 Results – Revenue & EBITDA

		Q2 2015						Q2 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	137.4	15.6	11.4%	14.3	10.4%		137.9	15.4	11.2%	15.2	11.0%
Media Spain	87.1	10.2	11.7%	5.2	6.0%		96.9	11.1	11.5%	4.0	4.1%
Books	47.7	0.4	0.8%	0.0	0.0%		45.7	(1.7)	(3.7%)	(2.3)	(5.0%)
Advertising & Events	110.7	8.7	7.9%	8.4	7.6%		120.1	5.8	4.8%	5.6	4.7%
Corporate Activities	19.6	(7.5)	(38.3%)	(7.5)	(38.3%)		20.8	(5.8)	(27.9%)	(5.8)	(27.9%)
Others and eliminations	(67.1)	0.0	0.0%	0.0	ns		(73.2)	0.0	0.0%	0.0	ns
TOTAL RCS	335.4	27.4	8.2%	20.4	6.1%		348.2	24.8	7.1%	16.7	4.8%

						H1 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	258.7	15.1	5.8%	13.6	5.3%	260.6	14.8	5.7%	12.0	4.6%
Media Spain	160.2	7.8	4.9%	2.7	1.7%	176.6	4.1	2.3%	(16.6)	(9.4%)
Books	76.6	(6.0)	(7.8%)	(6.9)	(9.0%)	72.1	(9.9)	(13.7%)	(11.0)	(15.3%)
Advertising & Events	178.6	4.4	2.5%	3.9	2.2%	194.0	1.2	0.6%	0.8	0.4%
Corporate Activities	36.9	(16.2)	(43.9%)	(16.3)	(44.2%)	37.8	(14.4)	(38.1%)	(14.4)	(38.1%)
Others and eliminations	(119.1)	0.0	0.0%	0.0	ns	(130.0)	0.0	0.0%	0.0	ns
TOTAL RCS	591.9	5.1	0.9%	(3.0)	(0.5%)	611.1	(4.2)	(0.7%)	(29.2)	(4.8%)

H1 2015						(1) H1 2014
	Ebitda ex NR %	EBITDA	Ebitda%	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%

2015 Efficiency Program

• √ Additional € 26 M at June 2015
• √ €190 M delivered vs enhanced target of €220 M by end 2015

Balance Sheet

	30/06/2015		31/12/2014
Net fixed assets	834.8	117.7%	878.2	116.2%
Tangible Intangible fixed & assets	594 5	83.8%	652 4	86.4%
Financial fixed assets	240 3	33.9%	225 8	29.9%
Net working capital	50.9	7.2%	53.4	7.1%
Reserve for risk and charges	(147.2)	(20.7%)	(159.3)	(21.1%)
Employee termination indemnity	(49.4)	(7.0%)	(53.7)	(7.1%)
Net invested capital: assets held for sale	20.3	2.9%	36.9	4.9%
CAPITAL EMPLOYED	709.4	100.0%	755.5	100.0%
Net financial debt (cash)	526.3	74.2%	482.5	63.9%
Equity	183.1	25.8%	273.0	36.1%
EQUITY & NFP	709.4	100.0%	755.5	100.0%

1H 2015 Cash Flow

Agenda

Highlights

Market & Business Trends

First Half 2015 Results

Business Units Backup

Media Italy –	P&L
EUR million	2Q15	2Q14	YoY	1H15	1H14	YoY
Circulation Advertising Other	72.4 59.5 5.5	68.7 63.5 5.7	5 4% (6 3%) (3 5%)	145.3 102.7 10.7	138.3 111.0 11.3	5 1% (7 5%) (5 3%)	advertising on-line 23%
TOTAL REVENUE add O/W on	137.4 23 0	137.9 17 4	(0 4%)	258.7 45 5	260.6 35 3	(0 7%)
EBITDA ex NR Items	15.6	15.4	1 3%	15.1	14.8	(2 0%)
Non Recurring Items	(1.3)	(0.2)		(1.5)	(2.8)
EBITDA	14.3	15.2	(5 9%)	13.6	12.0	(13 3%)
27

	Media Spain –	P&L
EUR million		2Q15	2Q14	YoY	1H15	1H14	YoY
	Circulation Advertising Other	35.4 41.5 10.2	41.2 44.3 11.4	(14 1%) (6 3%) (10 5%)	69.7 72.1 18.4	81.0 75.2 20.4	(14 0%) (4 1%) (9 8%)	advertising on-line 29%
	TOTAL REVENUE add O/W on	87.1 1 0	96.9 0 4	(10 1%)	160.2 2 3	176.6 0 9	(9 3%)
	EBITDA ex NR Items Non Recurring Items	10.2 (5.0)	11.1 (7.1)	(8 1%)	7.8 (5.1)	4.1 (20.7)	90 2%
28	EBITDA	5.2	4.0	30 0%	2.7	(16.6)	>100

	Books – P&L
EUR million		2Q15	2Q14	YoY	1H15	1H14	YoY
	Fiction & non-Fic. Italy	26.3	25.2	4 4%	47.5	44.6	6 5%
	Education	15.8	15.8	0 0%	18.4	18.6	(1 1%)
	Rizzoli International	5.6	4.8	16 7%	10.7	8.9	20 2%
	Other	0.0	(0.1)	n.s.	0.0	0.0	ns
	TOTAL REVENUE	47.7	45.7	4 4%	76.6	72.1	6 2%
	EBITDA ex NR Items	0.4	(1.7)	>100	(6.0)	(9.9)	39 5%
	Non Recurring Items	(0.4)	(0.6)		(0.9)	(1.1)
	EBITDA	0.0	(2.3)	100 0%	(6.9)	(11.0)	37 3%

	Communication Solutions	Sport MILANO SUISSEGAS
Ciro d'Italia	IRO ARTisE	AGENCY_	$10^{\circ}$

Advertising & Events – P&L

EUR million	2Q15	2Q14	YoY	1H15	1H14	YoY
Advertising and Events	79.7	87.3	(8 7%)	138.0	149.9	(7 9%)
publishing O/W RCS	64 8	72 5		112 7	126 3
3rd publishers party	12 6	13 9		22 1	21 9
Sport Events	31.0	32.8	(5 5%)	40.6	44.1	(7 9%)
TOTAL REVENUE	110.7	120.1	(7 8%)	178.6	194.0	(7 9%)
EBITDA ex NR Items	8.7	5.8	50 0%	4.4	1.2	n.s.
Non Recurring Items	(0.3)	(0.2)		(0.5)	(0.4)
EBITDA	8.4	5.6	50 0%	3.9	0.8	n.s.

RCS MediaGroup

First Half 2015 Results

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.

Roberto Bonalumi, 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.