Mediaset Group 2017 Consolidated Annual Report

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Mediaset Group 2017 Consolidated Annual Report Annual Report 2017 MEDIASET S.p.A. - via Paleocapa, 3 - 20121 Milan Share Capital Euros 614,238,333.28 fully paid up Tax Code, VAT number and inscription number in the Milan Enterprises Register: 09032310154 Website: www.mediaset.it Table of Contents Consolidated Financial Statements 2017 Directors’ report on operations Corporate Boards ..................................................................................................... 1 Financial Highlights .................................................................................................. 2 Directors’ Report on Operations ................................................................................ 5 General economic trends ........................................................................................... 8 Development in the legislative framework in the television sector ................................. 9 Mediaset shares ..................................................................................................... 11 Significant Events and Key Corporate Transaction for the year ................................... 13 The Main Group companies ...................................................................................... 16 Group Profile and Performance Review by Business Segment ..................................... 17 Consolidated Performance by Geographical Area and Business Segment Economic Results ............................................................................................. 51 Balance Sheet and Financial Position .................................................................. 69 Parent Company Performance Economic Results ............................................................................................. 67 Balance Sheet and Financial Position .................................................................. 69 Reconciliation between Consolidated and Parent Company Net Profit and Shareholders’ Equity ........................................................................................ 71 Disclosure of the Main Risks and Uncertainties to which the Group is exposed .............. 72 Human Resources: Group .............................................................................................................. 80 Parent Company ............................................................................................... 82 Disclosure Required by article 2428 of the Italian Civil Code ...................................... 86 Other Information................................................................................................... 89 Events after 31 December 2017 .............................................................................. 92 Forecast for the year .............................................................................................. 93 Draft resolution ...................................................................................................... 94 Mediaset Group 2017 Consolidated Annual Report Consolidated Financial Statements Consolidated Statement of Financial Position ............................................................ 96 Consolidated Statement of Income ........................................................................... 98 Consolidated Statement of Comprehensive Income ................................................... 99 Consolidated Statement of Cash Flows ................................................................... 100 Consolidated Statement of Changes in Shareholders’ Equity .................................... 101 Consolidated Statement of Financial Position and Statement of Income according to Consob Resolution n. 15519 dated 27 July 2006 .................................................... 102 Explanatory Notes General Information .............................................................................................. 105 Basis of Presentation and Accounting Policies for the preparation of the Financial Statements ............................................................ 105 Summary of the Accounting Standards and Measurement Criteria ............................ 106 Key Information relating to the scope of consolidation ............................................. 125 Business Combination ........................................................................................... 130 Segment Reporting ............................................................................................... 134 Notes on main Asset Items .................................................................................... 140 Notes on main Shareholders’ Equity and Liability Items ............................................ 159 Notes on the main Items of the Statement of Income ............................................... 173 Cash Flow Statement ............................................................................................ 182 Disclosures on Financial Instruments and Risk Management Policies ......................... 183 Share-based Payments ......................................................................................... 200 Related Party Transactions ................................................................................... 203 Commitments ...................................................................................................... 205 List of Equity Investments included in the Group’s Consolidated Financial Statements at 31December 2017 ........................................................................................... 207 Certification on the Consolidated Annual Financial Statements pursuant art- 154 – bis of Legislative Decree 58/98 .................................................. 209 Indipendent Auditors’ Report .................................................................................... 213 Mediaset S.p.A. 2017 Annual Report Financial Statements Statement of Financial Position ............................................................................. 224 Statement of Income ............................................................................................ 226 Statement of Coprehensive Income ........................................................................ 227 Statement of Cash Flows ....................................................................................... 228 Statement of Changes in Shareholders’ Equity ........................................................ 229 Statement of Financial Position according to Consob resolution n. 15519 of 27 July 2006 ....................................... 230 Statement of Income according to Consob resolution n. 15519 of 27 July 2006 ....................................... 232 Explanatory Notes General Information .............................................................................................. 234 Adoption of International Accounting Standards ..................................................... 234 Basis of presentation, accounting policies for the preparation of the financial statements and measurement criteria ................. 234 Other Information................................................................................................. 248 Notes on main Asset Items .................................................................................... 254 Notes on main Shareholders’ Equity and Liability Items ............................................ 266 Notes on the main Items of the Statement of Income ............................................... 284 Investment Commitments and Guarantees .............................................................. 295 Disclosures on Financial Instruments and Risk Management Policies ......................... 297 Attachments ........................................................................................................ 310 Report of the Statutory Auditors and the External Auditors ..................................... 315 Certification on the Annual Financial Statements pursuant art- 154 – bis of Legislative Decree 58/98 .................................................. 337 Summary Tables of main economic and financial data of Companies Included in the Consolidation Area........................................................... 341 Extract from the Resolutions adopted by the Shareholders’ Meeting ......................... 355 Compensation Report Report on Corporate Governance and the Company’s Ownership Structure Mediaset Group Annual Report 2017 Mediaset Group Consolidated Annual Report 2017 Directors’ Report on Operations CORPORATE BOARDS Board of Directors Chairman Fedele Confalonieri Deputy Chairman and Chief Executive Officer Pier Silvio Berlusconi Directors Giuliano Adreani Marina Berlusconi Franco Bruni Pasquale Cannatelli* Mauro Crippa Bruno Ermolli Marco Giordani Fernando Napolitano Gina Nieri Michele Perini Alessandra Piccinino Niccolo' Querci Stefano Sala Carlo Secchi Wanda Ternau Executive Committee Fedele Confalonieri Pier Silvio Berlusconi Giuliano Adreani Marco Giordani Gina Nieri Risk and Control Committee Carlo Secchi (Chairman) Franco Bruni Fernando Napolitano Compensation Committee Michele Perini (Chairman) Bruno Ermolli Fernando Napolitano Governance Carlo Secchi (Chairman) and Appointments Committee Michele Perini Wanda Ternau Committee of Independent Directors for Michele Perini (Chairman) Related-party transactions Alessandra Piccinino Carlo Secchi Board of Statutory Auditors Mauro Lonardo (Chairman) Francesca Meneghel (Regular Auditor) Ezio Maria Simonelli (Regular Auditor)
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