Rcs Mediagroup

Earnings Release • Nov 13, 2015

RCS MediaGroup

9M 2015 Results

Milan, November 13th, 2015

Market & Business Trends

9M 2015 Results

Business Units Backup

Italian Advertising Trends: Market & RCS

Advertising Gross Revenue, YoY %

Spanish Advertising Trends: Market & RCS

Advertising Gross Revenue, YoY %

*Ex Sport Events

** Including special branded events referring to Unidad Editorial

Source: Arce Media and internal estimates for National Newspapers

Spain: Advertising Trends

6

Source: Arce Media

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

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

Sports 9M 2014 9M 2015 456 404 -11.3%

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

9M 2014 9M 2015 29 27 12 9M 2015 -6.0% Digital 41 12 39 9M 2014 +2%

Million Users

Spain: Online Readership

Weekly Unique Browsers

Agenda

Market & Business Trends

9M 2015 Results

Business Units Backup

9M 2015 Results – Summary

EUR million

	Q3 2015		(1) Q3 2014		∆ %	9M 2015		(1) 9M 2014		∆ %
Total Revenue	223.8	10 0 %	228.8	10 0 %	(2.2%)	743.0	10 0 %	771.8	10 0 %	(3.7%)
Circulation	109.1		115.0		(5.1%)	323.8		334.4		(3.2%)
Advertising	91.5		90.7		0.9%	327.5		341.5		(4.1%)
Other	23.2		23.1		0.4%	91.7		95.9		(4.4%)
EBITDA ex NR Items	6.8	3 .0 %	3.4	1.5%	100.0%	17.4	2 .3 %	9.2	1.2 %	89.1%
Non Recurring Items	(5.7)	0 .0 %	(3.1)	0 .0 %		(12.9)	0 .0 %	(27.1)	0 .0 %
EBITDA	1.1	0 .5%	0.3	0 .1%	266.7%	4.5	0 .6 %	(17.9)	( 2 .3 %)	n s
EBIT	(13.5)		(15.9)			(75.4)		(69.4)
Net Result	(31.0)		(23.1)			(126.4)		(93.1)
NFP						(500.0)		(515.3)

12 In 3Q15 and in 9M15 costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op. (1)

Q3 & 9M 2015 Results

EUR million			(1)				(1)
	Q315		Q314		9M15		9M14		∆ %
Circulation	109.1	48.7%	115.0	50.3%	323.8	43.6%	334.4	43.3%	(3.2%)
Advertising	91.5	40.9%	90.7	39.6%	327.5	44.1%	341.5	44.2%	(4.1%)
Other	23.2	10.4%	23.1	10.1%	91.7	12.3%	95.9	12.4%	(4.4%)
TOTAL REVENUE	223.8	100%	228.8	100%	743.0	100%	771.8	100%	(3.7%)
Operating costs	(149.2)	(66.7%)	(159.3)	(69.6%)	(505.5)	(68.0%)	(539.0)	(69.8%)	(6.2%)
Labour costs	(66.7)	(29.8%)	(64.3)	(28.1%)	(214.3)	(28.8%)	(215.3)	(27.9%)	(0.5%)
Writedowns	0.0	0.0%	(0.2)	(0.1%)	(2.7)	(0.4%)	(2.4)	(0.3%)	12.5%
Provisions	(1.1)	(0.5%)	(1.6)	(0.7%)	(3.1)	(0.4%)	(5.9)	(0.8%)	(47.5%)
EBITDA ex Non Recurring Items	6.8	3.0%	3.4	1.5%	17.4	2.3%	9.2	1.2%	89.1%
Non Recurring Items	(5.7)	(2.5%)	(3.1)	(1.4%)	(12.9)	(1.7%)	(27.1)	(3.5%)	ns
EBITDA	1.1	0.5%	0.3	0.1%	4.5	0.6%	(17.9)	(2.3%)	ns
D&A	(14.6)	(6.5%)	(14.3)	(6.3%)	(44.0)	(5.9%)	(42.7)	(5.5%)
Impairment writeoffs	0.0	0.0%	(1.9)	(0.8%)	(35.9)	(4.8%)	(8.8)	(1.1%)
EBIT	(13.5)	(6.0%)	(15.9)	(6.9%)	(75.4)	(10.1%)	(69.4)	(9.0%)
Net financial incomes (charges)	(8.1)	(3.6%)	(10.0)	(4.4%)	(26.1)	(3.5%)	(30.8)	(4.0%)
Gain (losses) on financial assets/liabilities	0.0	0.0%	(1.8)	(0.8%)	(1.6)	(0.2%)	(1.9)	(0.2%)
Income (charges) from equity investments	0.3	0.1%	(0.1)	(0.0%)	1.4	0.2%	(1.0)	(0.1%)
PRE-TAX RESULT	(21.3)	(9.5%)	(27.8)	(12.2%)	(101.7)	(13.7%)	(103.1)	(13.4%)
Taxes	(3.1)	(1.4%)	1.3	0.6%	8.3	1.1%	12.8	1.7%
NET RESULT FROM CONTINUING OPERATIONS	(24.4)	(10.9%)	(26.5)	(11.6%)	(93.4)	(12.6%)	(90.3)	(11.7%)
(1) Net Result from Discontinuing and Discontinued Op.	(7.2)	(3.2%)	3.4	1.5%	(33.8)	(4.5%)	(3.3)	(0.4%)
Minorities	0.6	0.3%	0.0	0.0%	0.8	0.1%	0.5	0.1%
NET RESULT	(31.0)	(13.9%)	(23.1)	(10.1%)	(126.4)	(17.0%)	(93.1)	(12.1%)

13 (1) In 3Q15 and in 9M15 costs and revenues related to the Books activities were classified as Net Result from Discontinuing and Discontinued Op. In 3Q14 and in 9M14 this Financial Statement item has been restated to take into account to Books activities results and also the IGP Decaux and Finelco Group results

2013-2015 EBITDA Evolution by Quarter (1)

EUR million

√ 9 consecutive quarters of YoY improvements

Variance 9M 2015 EBITDA*

√ 21.2M € increase in 9M 2015 vs 9M 2014 when adjusted for:

• Sport Events

• Corriere della Sera and Gazzetta dello Sport's special editions
• Gazzetta TV launch and start-up costs

Q3 and 9M 2015 Results – Revenue & EBITDA

			Q3 2015			Q3 2014
EUR million	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%	Revenue	EBITDA Ex Non Recurring Items	Ebitda ex NR %	EBITDA	Ebitda%
Media Italy	121.1	15.9	13.1%	16.3	13.5%	123.7	12.6	10.2%	16.1	13.0%
Media Spain	74.5	0.6	0.8%	(5.0)	(6.7%)	80.5	1.2	1.5%	(4.9)	(6.1%)
Advertising & Events	59.8	(2.9)	(4.8%)	(3.1)	(5.2%)	57.8	(3.2)	(5.5%)	(3.6)	(6.2%)
Corporate Activities	17.0	(6.3)	(37.1%)	(6.6)	(38.8%)	17.8	(6.9)	(38.8%)	(7.0)	(39.3%)
Others and eliminations	(48.6)	(0.5)	n.s.	(0.5)	n.s.	(51.0)	(0.3)	n.s.	(0.3)	n.s.
CONSOLIDATED	223.8	6.8	3.0%	1.1	0.5%	228.8	3.4	1.5%	0.3	0.1%
(1) Assets held for sale or sold	86.0	11.6		11.5		83.3	14.1		12.2
Others and eliminations	(1.2)	0.4		0.4		(1.7)	0.4		0.4
TOTAL	308.6	18.8	6.1%	13.0	4.2%	310.4	17.9	5.8%	12.9	4.2%

		9M 2015					9M 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	379.8	31.0	8.2%	29.9	7.9%	384.3	27.5	7.2%	28.1	7.3%
Media Spain	234.7	8.5	3.6%	(2.3)	(1.0%)	257.1	5.2	2.0%	(21.5)	(8.4%)
Advertising & Events	238.4	1.4	0.6%	0.8	0.3%	251.8	(2.0)	(0.8%)	(2.8)	(1.1%)
Corporate Activities	53.8	(22.6)	(42.0%)	(23.0)	(42.8%)	55.6	(21.2)	(38.1%)	(21.4)	(38.5%)
Others and eliminations	(163.7)	(0.9)	n.s.	(0.9)	n.s.	(177.0)	(0.3)	n.s.	(0.3)	n.s.
CONSOLIDATED	743.0	17.4	2.3%	4.5	0.6%	771.8	9.2	1.2%	(17.9)	(2.3%)
(1) Assets held for sale or sold	162.6	5.6		4.6		155.4	4.2		1.3
Others and eliminations	(5.1)	0.9		0.9		(5.7)	0.3		0.3
TOTAL	900.5	23.9	2.7%	10.0	1.1%	921.5	13.7	1.5%	(16.3)	(1.8%)

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

16 (1) Revenues, EBITDA and EBITDA Ex Non Recurring Items related to Books area are exposed separately from the Total consolidated for both 2014 and 2015

2015 Efficiency Program

EUR million

• √ Additional € 41 M at September 2015
• √ €205 M delivered vs enhanced target of €220 M by end 2015

Balance Sheet

EUR million

	30/09/2015		31/12/2014
Net fixed assets	783.8	120.3%	878.2	116.2%
Tangible Intangible fixed & assets	571 8	87.8%	652 4	86.4%
Financial fixed assets	212 0	32.5%	225 8	29.9%
Net working capital	(88.4)	(13.6%)	53.4	7.1%
Reserve for risk and charges	(119.5)	(18.3%)	(159.3)	(21.1%)
Employee termination indemnity	(43.2)	(6.6%)	(53.7)	(7.1%)
Net invested capital: assets held for sale	118.6	18.2%	36.9	4.9%
CAPITAL EMPLOYED	651.4	100.0%	755.5	100.0%
Net financial debt (cash)	497.1	76.3%	482.5	63.9%
Net financial debt: assets held for sale	2.9	0.5%	-
Equity	151.4	23.2%	273.0	36.1%
EQUITY & NFP	651.4	100.0%	755.5	100.0%

19 -517 -28 - 1 -502 -31 -483 0 41 9M 2015 Cash Flow EUR million NFP Acquisitions 31/12/14 NFP 30/09/15 Others Operating Cash Flow CAPEX (1) -474 -37 -36 -515 NFP 01/01/2014 NFP 30/09/2014 20 -5 OPERATING CASH FLOW -30 Disposals +35 VS PY -483 0 47 0 +41 Saving Shares Conv. -31 -28 -500 9M 2014 +9 VS PY - 26 VS PY -3 -497 -33 +32 -1 -27 -4 -27 +2 +39 Books +34 Group Net of Books o/w 0 -1 0 -1 +1 Dividends

(1) Non recurring items and other minor Cash flow representation as of management reporting

FY 2015

Market & Business Trends

9M 2015 Results

Business Units Backup

Media Italy –		P&L
EUR million		3Q15	3Q14	YoY	9M15	9M14	YoY
Circulation Advertising Other		74.6 42.2 4.3	76.7 41.9 5.1	(2 7%) 0 7% (15 7%)	219.9 144.8 15.1	215.0 152.9 16.4	2 3% (5 3%) (7 9%)	advertising on-line 22.5%
add O/W	TOTAL REVENUE on	121.1 19 0	123.7 17 3	(2 1%)	379.8 61 5	384.3 53 3	(1 2%)
	EBITDA ex NR Items	15.9	12.6	26 2%	31.0	27.5	(12 7%)
	Non Recurring Items	0.4	3.5		(1.1)	0.6
EBITDA		16.3	16.1	1 2%	29.9	28.1	(6 4%)
22

Media Spain –		P&L
EUR million		3Q15	3Q14	YoY	9M15	9M14	YoY
Circulation Advertising Other		34.5 29.1 10.9	38.6 30.2 11.7	(10 6%) (3 6%) (6 8%)	104.2 101.2 29.3	119.6 105.4 32.1	(12 9%) (4 0%) (8 7%)	advertising on-line 29.8%
TOTAL REVENUE add O/W on		74.5 0 4	80.5 0 2	(7 5%)	234.7 2 7	257.1 1 5	(8 7%)
EBITDA ex NR Items		0.6	1.2	(50 0%)	8.5	5.2	63 5%
Non Recurring Items		(5.6)	(6.1)		(10.8)	(26.7)
EBITDA		(5.0)	(4.9)	(2 0%)	(2.3)	(21.5)	89 3%

	Communication Solutions	MILANO V SUISSEGAS
Giro d'Italia	IBO RT29E	AGENCY_	NOON

Advertising & Events – P&L

EUR million	3Q15	3Q14	YoY	9M15	9M14	YoY
Advertising and Events	56.3	56.7	(0 7%)	194.4	206.6	(5 9%)
publishing O/W RCS	46 0	47 6		158 7	174 0
3rd publishers party	9 3	8 3		31 4	30 2
Sport Events	3.5	1.1	n.s.	44.0	45.2	(2 7%)
TOTAL REVENUE	59.8	57.8	3 5%	238.4	251.8	(5 3%)
EBITDA ex NR Items	(2.9)	(3.2)	(9 4%)	1.4	(2.0)	n.s.
Non Recurring Items	(0.2)	(0.4)		(0.6)	(0.8)
EBITDA	(3.1)	(3.6)	(13 9%)	0.8	(2.8)	n.s.

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.