Rcs Mediagroup

Earnings Release • Jun 24, 2015

RCS MediaGroup

Q1 2015 Results

Mediobanca Italian CEO Conference Milan, June 25, 2015

Agenda

Highlights

Market & Business Trends

Q1 2015 Results

Business Units Back up

2

Q1 2015 Delivery Report

Profitability

Continued improvement EBITDA affected by cyclical seasonality in Q1

Efficiencies In line with FY15 target of € 56M

Cash Flow Continued positive trend with improvement of € 25M vs Q1 2014

Advertising Different pace across media & countries Market volatility continues

Books Market share gains, revenue growth +10%, EBITDA improving Due diligence ongoing

Q1 2015 Results on track to reach FY targets

EUR million	Q1 2015	vs. Targets
REVENUE	256.5	Broadly in line
EFFICIENCIES	13.0	In line
EBITDA ex non recurring items	(22.3)	In line
Non recurring items	(1.1)	In line
NFD	507.5	In line

Focus on Q1 & Q2 2015 initiatives

MEDIA ITALY

NEWS

• New Corriere della Sera Editor in Chief
• Special initiatives for Expo
• Relaunch of Style Magazine
• Successful 2nd The Art of Living exhibition

SPORT

• Encouraging launch of Gazzetta TV channel 59 on DTT
• Launch of HeyGoal App
• 7 th edition of Gazzetta Cup tournament

ADV & SPORT EVENTS BOOKS

ADVERTISING

• New adv organization: RCS Communication Solutions
• New BTL agency NuMix
• Partnerships on profiling & data monetization (Madai, Blurum
• Mosaicoon)

SPORT EVENTS

(Electric Run)

• 98th Giro d'Italia and Spring Classic Cycling Races
• Great results for the 2nd edition of Dubai Tour
• Participants increase for Color Runs and Milano Marathon and extending new mass events formats

MEDIA SPAIN

NEWS

• New El Mundo Editor in Chief
• Expansión.com new web-site launch
• Branded content web series successfully launched

SPORT

• Launch of Marca Buzz

• Marca.com new video platform with improved "In app" video

• 2 Pulitzer Prizes published by Rizzoli

• Strong Q1 titles (Eco, Houellebecq) and successful Q2 launches (Cazzullo, Vespa)
• Rizzoli Galleria bookstore in Milan successful results and upcoming reopening of New York Rizzoli bookstore

Q1 2015 - Digital revenue

(1) Italy excluding books

(2) % on trade books

6

Agenda

Highlights

Market & Business Trends

Q1 2015 Results

Business Units Back up

Advertising Trends: Italy vs Spain

Advertising Gross Revenue, Q1 2015/Q1 2014 %

Online excluding Search Adv Source: Nielsen Media Research

(2) Including: Cinema , Direct Mail ,Transit, Out of home TV (3) RCS including third party Source: Nielsen Media Research

Spain: Advertising Trends

10

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

Q1 2015

21.4

40.3

Source: Nielsen Online – SiteCensus- Adobe Sitecatalyst

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

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

Q1 2014 Q1 2015 30 28 12 Q1 2015 -2.9% Digital 42 13 41 Q1 2014 +4%

13

Million Users

Spain: Online Readership

14

Books: RCS Trade vs Market

Agenda

Highlights

Market & Business Trends

Q1 2015 Results

Business Units Back up

Q1 2015 Results - Summary

EUR million
	Q1 2015		(1) Q1 2014		∆ %
Total Revenue	256.5	10 0 %	262.9	10 0 %	(2.4%)
Circulation	134.1		134.8		(0.5%)
Advertising	96.3		101.1		(4.7%)
Other	26.1		27.0		(3.3%)
EBITDA ex NR Items	(22.3)	( 8 .7%) 0 .0 %	(29.0)	( 11.0 %) 0 .0 %	n s
Non Recurring Items	(1.1)	0 .0 %	(16.9)	0 .0 %
EBITDA	(23.4)	( 9 .1%)	(45.9)	( 17.5%)	n s
EBIT	(39.1)		(60.1)
Net Result	(35.2)		(53.9)
NFP	(507.5)		(520.8)

Q1 2015 FY Results – Profit & Loss

EUR million	Q1 2015		(1) Q1 2014		∆ %
Circulation	134.1	52.3%	134.8	51.3%	(0.5%)
Advertising	96.3	37.5%	101.1	38.5%	(4.7%)
Other	26.1	10.2%	27.0	10.3%	(3.3%)
TOTAL REVENUE	256.5	100%	262.9	100%	(2.4%)
Operating costs (ex non recurring costs)	(194.8)	(75.9%)	(202.5)	(77.0%)	(3.8%)
Labour costs (ex non recurring costs)	(79.3)	(30.9%)	(83.7)	(31.8%)	(5.3%)
Writedowns	(2.6)	(1.0%)	(4.1)	(1.6%)	ns
Provisions	(2.1)	(0.8%)	(1.6)	(0.6%)	ns
EBITDA ex Non Recurring Items	(22.3)	(0.1)	(29.0)	(11.0%)	(23.1%)
Non Recurring Items	(1.1)	(0.4%)	(16.9)	(6.4%)	ns
EBITDA	(23.4)	(0.1)	(45.9)	(17.5%)	ns
D&A	(15.4)	(6.0%)	(14.2)	(5.4%)
Impairment writeoffs	(0.3)	(0.1%)	0.0	0.0%
EBIT	(39.1)	(15.2%)	(60.1)	(22.9%)
Net financial incomes (charges)	(8.9)	(3.5%)	(10.2)	(3.9%)
Gain (losses) on financial assets/liabilities	(0.2)	(0.1%)	0.0	0.0%
Income (charges) from equity investments	0.3	0.1%	(0.3)	(0.1%)
PRE-TAX RESULT	(47.9)	(18.7%)	(70.6)	(26.9%)
Taxes	12.3	4.8%	12.5	4.8%
Net Result from Discontinuing and Discontinued Op.	0.0	0.0%	3.9	1.5%
Minorities	0.4	0.2%	0.3	0.1%

(1) The Casa Editrice La Tribuna business was sold on March 1, 2014

2013-2015 EBITDA evolution by quarter (1)

EUR million

√ 7 consecutive quarters of YoY improvements

(1) EBITDA before non recurring costs

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

Q1 2015 Results – Breakdown Revenue & Ebitda

	Q1 2015				(1) Q1 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	121.4	(0.4)	(0.3%)	(0.6)	(0.5%)	122.7	(0.6)	(0.5%)	(3.2)	(2.6%)
Media Spain	73.0	(2.4)	(3.3%)	(2.5)	(3.4%)	79.7	(7.0)	(8.8%)	(20.6)	(25.8%)
Books	28.9	(6.4)	(22.1%)	(6.9)	(23.9%)	26.3	(8.3)	(31.6%)	(8.7)	(33.1%)
Advertising & Events	68.0	(4.3)	(6.3%)	(4.5)	(6.6%)	73.9	(4.6)	(6.2%)	(4.8)	(6.5%)
Corporate Activities	17.3	(8.8)	(50.9%)	(8.9)	(51.4%)	17.1	(8.6)	(50.3%)	(8.6)	(50.3%)
Others and eliminations	(52.1)	0.0	0.0%	0.0	0.0%	(56.8)	0.1	(0.2%)	0.0	0.0%
TOTAL RCS	256.5	(22.3)	(8.7%)	(23.4)	(9.1%)	262.9	(29.0)	(11.0%)	(45.9)	(17.5%)

2015 Efficiency program

• √ Additional €13M at March 2015
• √ €177 M delivered vs enhanced target of €220 M by end 2015

Balance Sheet

	31/03/2015		31/12/2014
Net fixed assets	890.6	118.7%	878.2	116.2%
Tangible Intangible fixed & assets	652 0	86.9%	652 4	86.4%
Financial fixed assets	238 6	31.8%	225 8	29.9%
Net working capital	27.4	3.7%	53.4	7.1%
Reserve for risk and charges	(152.8)	(20.4%)	(159.3)	(21.1%)
Employee termination indemnity	(52.1)	(6.9%)	(53.7)	(7.1%)
Net invested capital: assets held for sale	36.9	4.9%	36.9	4.9%
CAPITAL EMPLOYED	750.0	100.0%	755.5	100.0%
Net financial debt (cash)	507.5	67.7%	482.5	63.9%
Equity	242.5	32.3%	273.0	36.1%
EQUITY & NFP	750.0	100.0%	755.5	100.0%

Focus on Q1 2015 Cash Flow

• 8 - 4 -13 0 -507 -483 0 (1) Non recurring items and other minor EUR million Cash flow representation as of management reporting NFP Acquisitions 31/12/14 NFP 31/03/15 Others Operating Cash Flow CAPEX (1) Q1 2014 -474 -22 -29 -521 NFP 31/12/2013 NFP 31/03/2014 19 -5 OPERATING CASH FLOW -10 Disposals +25 VS AP -483 -507 -8 -4 -13

Agenda

Highlights

Market & Business Trends

Q1 2015 Results

Business Units Back up

O/W add on 22.5 17.9

Non Recurring Items (0.2) (2.6)

EBITDA ex NR Items (0.4) (0.6) 33.3%

EBITDA (0.6) (3.2) 81.3%

EUR million
	Q1 2015	Q1 2014	YoY
Circulation Advertising Other	34.2 30.6 8.2	39.8 30.9 9.0	(14 1%) (1 0%) (8 9%)	advertising on-line 32%
TOTAL REVENUE	73.0	79.7	(8 4%)
add O/W on	1 3	0 9
EBITDA ex NR Items	(2.4)	(7.0)	65 7%
Non Recurring Items	(0.1)	(13.6)
EBITDA	(2.5)	(20.6)	87 9%

	Q1 2015	Q1 2014	YoY
Fiction & non-Fic. Italy Education Rizzoli International Other	21.2 2.6 5.1 0.0	19.4 2.7 4.2 0.0	9 3% (3 7%) 21 4% ns
TOTAL REVENUE	28.9	26.3	9 9%
EBITDA ex NR Items	(6.4)	(8.3)	22 9%
Non Recurring Items	(0.5)	(0.4)
EBITDA	(6.9)	(8.7)	20 7%

	Q1 2015	Q1 2014	YoY
Advertising and Events	58.4	62.6	(6 7%)
publishing O/W RCS	47 9	53 8
3rd publishers party	9 5	8 0
Sport Events	9.6	11.3	(15 0%)
TOTAL REVENUE	68.0	73.9	(8 0%)
EBITDA ex NR Items	(4.3)	(4.6)	6 5%
Non Recurring Items	(0.2)	(0.2)
EBITDA	(4.5)	(4.8)	6 3%

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.