Rcs Mediagroup — Investor Presentation 2016

May 2, 2016

RCS MediaGroup

Business Plan 2016-2018

Agenda

Starting point and context

• Market trends
• RCS positioning

How to succeed in the near future: RCS Plan 2016-2018

• •Objectives and key actions
• Financial projections

Agenda

Starting point and context

• Market trends
• RCS positioning

How to succeed in the near future: RCS Plan 2016-2018

• •Objectives and key actions
• Financial projections

Editorial market: the basis for competition is significantly shifting

Overall media consumption is continuing to increase

Media consumption by different media types (number of hours per week)

...but print consumption structurally declining

Increase in media consumption mainly driven by time spent online

Source: Global Consumer Media Usage and Exposure Forecast 2014 – 2018, PQMedia

This transition to the digital ecosystem as source of content is particularly evident for younger segments

Main source of news across age groups

Audience is "always on" and demands a 24/7 interaction online, and this is even more evident for younger generations

Structural decline in print translates into decreasing circulation; this decline is only partially offset by paid circulation from Digital editions

ATL budgets are shifting to Digital...

'17E

'16E

'15E

'18E

Source: RCS estimate on Nielsen-GroupM-Zenith data (Italy); ArceMedia, I2P (Spain)

'12 '13

'14

10

'10

'11

...and in Digital the focus is shifting from Display towards Video, Mobile and Social

Next to a challenging ATL market, there is a large market of BTL/ B2B marketing and communication solutions growing and increasingly digital

Agenda

Starting point and context

• Market trends
• RCS positioning

How to succeed in the near future: RCS Plan 2016-2018

• •Objectives and key actions
• Financial projections

So far RCS still shifted towards the "wrong side" of the scale

RCS has the opportunity to build a future on the "right side" of the scale

Agenda

Starting point and context

• Market trends
• RCS positioning

How to succeed in the near future: RCS Plan 2016-2018

• •Objectives and key actions
• Financial projections

Agenda

Starting point and context

• Market trends
• RCS positioning

How to succeed in the near future: RCS Plan 2016-2018

• •Objectives and key actions
• Financial projections

RCS Business Plan 2016-2018 is geared towards 3 objectives

Ensure sustainable economics going forward

Value RCS assets, managing the business transformation

Set strong foundations for future growth

To achieve these objectives, there are 8 fundamental actions to focus on

Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 1 2 3 4 5 6 7 8

1 Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 2 3 4 5 6 7 8

Persistently reduce costs, protecting products' investments & quality, mainly through 3 initiatives

A	External costs	• Direct costs (Physical production, Publishing & Editing, Logistic services) • Indirect costs (General services, Marketing & Sales services, IT & Telecom, Professional services)
B	Labor costs	• Right-sizing of corporate/ support functions also through integration of Italy & Spain • Lean model on product costs (content creation, prepress, print, logistics)
C	Print consolidation	• the value chain by leading industry See 5 Optimize Action print - consolidation process

^AExternal costs: identified initiatives to reduce external costs by ~45M€

External costs: key initiatives underpinning cost reduction so that external costs decrease to 62% of revenues in 2018P (vs. 66% in 2015F) A

1.Cost Intensity = External costs/revenues; External costs = Total costs excluding personnel costs

^BLabor costs: identified initiatives to reduce running labor costs by ~15M€

Action 2: Stabilize revenues and margins of Print+Web+Mobile editorial products

Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 1 2 3 4 5 6 7 8

Key initiatives to stabilize revenues and margins of editorial products

A	New verticalities	• Launch new paid verticalities for Corriere della Sera • Launch/develop new products "mobile-first" for Millennials • Foster cross-fertilization across countries •
B	Local editions	• Optimize print Local editions • Launch digital Hyperlocal editions •
C	Subscriptions	• Push on subscriptions and ARPU1 on Print & Digital editions • Reduce churn
D	Price	• Introduce selected paywall on companion websites • Review and optimize pricing strategy on Print editions

2) Stabilize revenues and margins of editorial products

New verticalities: New paid products to target RCS audience the example of Corriere della Sera with "La Lettura" A

• Selected examples-

Topic Launch1	Reading July 2015	Revenues 2016P	~2 - 2.5 M€
	• B2C product sold on top of Corriere since mid 2015 – Free product since 2011	(M€)
Overview	• Key success factors: – Higher quality – Discretionary purchase – Communication	EBITDA-CapEx 2016P (M€)	~0.5 - 1 M€
		EBITDA-CapEx/ Revenues 2016P (%)	~25 - 35%

LaLettura

1+ M€

Local editions: Optimize local editions and launch a new hyperlocal digital platform B

- Selected examples-

Today 9 local editions for Corriere della Sera

• 7 newspapers: Veneto, Mezzogiorno, Campania, Puglia, Firenze, Bologna, Trentino Alto Adige
• 2 editions (i.e. with desks at Corriere): Bergamo, Brescia

Review and optimization of current operating model

Optimization of existing local editions Launch of a "hyperlocal" digital platform

"Light" model, only via web & mobile Content by bloggers and registered users Coverage of 25-30 cities in Italy Impact on EBITDA-CapEx There is an opportunity to become a reference point on digital for local news – A highly relevant service for local communities – Need to focus on new, different, more engaging types of news

2018P (M€)

2) Stabilize revenues and margins of editorial products

Subscriptions: Following the 2015 trend in the Spanish market, subscriptions projected to increase going forward C

• Selected examples-

2) Stabilize revenues and margins of editorial products

Price: Introduce a Membership mechanism on companion websites to increase revenues, build loyalty and profile audience D

• Selected examples-

Action 3: Selectively invest in high-potential areas

1 Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 2 3 4 5 6 7 8

Selectively invest in high-potential areas

A	International Sport events and formats	• Push Sport events and formats, building on our "Iconic" properties, Professional events, Mass events • Develop "systems" of events
B	International audience	• Expand in Spanish-speaking markets, with a Marca-branded digital product • Leverage content from RCS power brands in Sport
C	Data-centric transformation	• Leverage Data to improve current revenue streams and create new ones • Focus on 4 areas: Online Adv, Subscriptions for Print and Digital, B2B Marketing Services, Product improvements/ new product development

International Sport events and formats: The current portfolio of Sport events, managed by RCS Sport and Last Lap A

33 1. Includes events with Long Term Licensing, organized by RCS 2. Percentages refer to the portion of Sport Events revenues generated by the relative category of events in 2015F Note. Events represented here are not an exhaustive list and refer to a selection of events in current portfolio of RCS Sport and Last Lap

%2

	Phase 1 Short term, with current set-up	Phase 2 Medium term, potentially with a partner
"Iconic" properties: enhance the value to international best practices	• Giro D'Italia - enhance its value as a global brand, • Iconic "classic" cycling and running races - fully exploit value, raise brand awareness	• RCS with a stronger competitive positioning • Further step-change in scale achievable at
Professional events: build, develop and grow "systems" of events	• Develop "systems" of events at international level • Build up on current properties by RCS	international level, potentially joining forces with a partner • Examples of partnership areas (illustrative): – Strategic investments in high potential events – Further development of own, new
Mass events: develop new formats and "systems" of events	• Growing market where Italy can command a superior value • Build up on current properties by RCS + invest in new formats development	formats, building up/ acquiring key capabilities – Creation of global circuits of professional events

International Sport events and formats: Summary of the Plan A

Economic impact of the International Sport events and formats initiative

International audience: The Spanish speaking market represents a sizeable opportunity for RCS international expansion B

~500 M people speak Spanish worldwide...

...translating into a large "Spanish-speaking" business

Online Video Adv Spend (M\$), Top 10 countries, 2015E-2020E

International audience: The attractiveness of RCS brands to Spanish speaking audiences comes from these important assets B

To succeed, need to have: Value of Marca brand and Marca+Gazzetta contents to Spanish speaking audiences

Recognized power of Marca brand to international audience

World class reference sites covering Spanish La Liga and Italian Serie A (Marca and Gazzetta)

Direct information from stars playing in La Liga and Serie A

Attractiveness to fans in Latin countries where many players come from

International audience: RCS has competitive advantage in Spanish speaking countries; a local support/partner would complement RCS strengths B

What is needed to succeed

Data-centric transformation: 4 clear opportunities to put a transformation in practice C

Data-centric transformation: Build around new capabilities to generate, analyze and utilize data C

		Technological Platform
	Generate data	Analyze data	Utilize data
What is this about?	Identify, collect and maintain useful client information	Use algorithms to extract information and make them usable by the business	Use the output of data analysis to support business decisions
Examples of actions	• Group and maintain data under a unique repository • Mandatory log-in on all News and Verticals websites	• Statistical analysis of audience profiles • Attribution models	• From offline to online Adv • From point of sale circulation to subscriptions • B2B marketing services • Product improvements and new product development

Action 4: Exploit scale to optimize technological platforms

1 Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 2 3 4 5 6 7 8

Exploit scale to optimize technological platforms

A	Enable business	• Digital contents • Digital advertising • Users' profiling • Customer experience management
B	Rationalize costs/investments	• Standardize platforms across businesses/ countries • Renegotiate jointly existing contracts
C	Exploit revenue synergies	• Develop revenue/ operating synergies

The current architecture, based on different standards per country, does not fully exploit potential synergies

	Italy	Spain
Infrastructure	Datacenter Platform A Server Farm Platform A	Datacenter Platform B
Enterprise Platform		Common Enterprise Platform
Content Management System	CMS Platform A	CMS Platform B
	CRM Platform A	CRM Platform B
	Customer Care Platform A	Customer Care Platform B
CRM & eCommerce	Campaign Platform A	Campaign Platform B
	eCommerce Platform A	eCommerce Platform B
	SFA1 Platform A	SFA1 Platform B
SFA & Advertising	Digital Inventory Platform A	Digital Inventory Platform B
	Adserver Platform A	Adserver Platform B
	Common Business Intelligence Platform
Analytics	Common Web Analytics Platform
	Advanced Analytics Platform A	Advanced Analytics Platform B
	Customer DB Platform A	Customer DB Platform B
Data	DMP2 Platform A	DMP2 Platform B
	Big Data Platform A	Big Data Platform B
	Architecture A	Architecture B
Digital Channels	• Development mostly outsourced	• Development mostly in house

Action 5: Optimize the value chain by leading the print industry consolidation process

1 Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 2 3 4 5 6 7 8

5) Optimize the value chain by leading the print industry consolidation process

There is excess of capacity in the Italian market, with outdated plants requiring investments

5) Optimize the value chain by leading the print industry consolidation process

Two options to optimize RCS printing cost in Italy

Action 6: Dismiss non-core/ low value assets

1 Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 2 3 4 5 6 7 8

Three categories of assets included in RCS portfolio review

Assets already identified as potential divestments, at the right conditions given asset trend and potential

Retain assets when functional to the core business

Under review

Action 7: Simplify the organization, focusing on capabilities, accountability & execution

1 Persistently reduce costs, protecting products' investments & quality Stabilize revenues and margins of Print+Web+Mobile editorial products Selectively invest in high-potential areas Exploit scale to optimize technological platforms Optimize the value chain by leading the print industry consolidation process Dismiss non-core/ low value assets Simplify the organization, focusing on capabilities, accountability & execution Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 2 3 4 5 6 7 8

7) Simplify the organization, focusing on capabilities, accountability & execution

The new organizational setup has been designed to ensure accountability of key decisions and execution of the overall Plan

Guiding principles

• I. Focus senior management and teams on Business Plan's key actions
• II. Facilitate synergies on Sport across Italy & Spain, on both revenues and costs
• III. Focus on execution of planned discontinuities
• Facilitate cost-synergies across Italy & Spain IV.

Ensure transformation enablers (platforms, capabilities mix), also nurturing young talents already present in RCS Group organization V.

7) Simplify the organization, focusing on capabilities, accountability & execution

A new organizational set-up for RCS Group to be implemented by January 2016

Specific aggregation and reporting lines to be communicated in coming weeks Procurement also providing Operations guidelines/ framework agreements

Action 8: Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment

• 1 Persistently reduce costs, protecting products' investments & quality
• Stabilize revenues and margins of Print+Web+Mobile editorial products 2
• Selectively invest in high-potential areas 3
• Exploit scale to optimize technological platforms 4
• Optimize the value chain by leading the print industry consolidation process 5
• Dismiss non-core/ low value assets 6
• Simplify the organization, focusing on capabilities, accountability & execution 7
• Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment 8

8) Monitor the Plan's execution via shared KPIs in order to swiftly adapt

Action 8: Continuously monitor the Plan's execution via shared KPIs in order to swiftly adapt to a changing environment

Key principles	Examples (illustrative)
The Plan will be continuously internally monitored with a set of KPIs, providing:	Persistently reduce costs, • External costs (direct & 1 protecting products' indirect)
Transparency On actions performed and results achieved	investments & quality • Labor costs • • EBITDA-CapEx per Stabilize revenues and 2
Accountability With KPIs consistent to Plan's objectives	product margins of Print+Web+ • Key milestones (e.g. Mobile editorial products products' launch) • Selectively invest in high 3 • EBITDA-CapEx per
Timeliness To react promptly to changing conditions	potential areas product • % of audience profiled •

Agenda

Starting point and context

• Market trends
• RCS positioning

How to succeed in the near future: RCS Plan 2016-2018

• •Objectives and key actions
• Financial projections

Business Plan 2016-2018: projected economics to ensure a sustainable financial structure

	Plan Target	Year 1 (2016P)
Revenues	+1.5% (CAGR 2015F - 2018P)	Flat
Net Efficiencies	~60 M€ (2018P vs. 2015F)	~40 - 45 M€
EBITDA % excl. Non Recurring	~13% (2018P)	~10%
Net Result	Solidly positive	Slightly positive
Net Cash Flow	3 years cumulative 95-100 M€	Break even
Debt Ratio	~2x	~4x

EBITDA Variance 2015F - 2018P

Variance of EBITDA excl. Non Recurring items (2015F - 2018P, M€)

KPIs Business Plan 2016-2018

P&L key highlights (current perimeter)

Net Financial Position: evolution 2015F - 2018P

Disclaimer

This presentation contains management preliminary estimates and forward-looking statements, including information related to RCS MediaGroup projected financial performance and the expected development of the publishing industry, in particular in the newspaper, magazine, book and new media segments. These statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, as of this date, though by their nature future estimates are uncertain and subject to variations due to possible changes in the market. Actual results or experience could differ materially from the information contained herein.

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.

For further information, please contact our Investor Relations Department

investor.relations@rcs.it

Investor Relations Department

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