GEDI Gruppo Editoriale Società Per Azioni

GEDI Gruppo Editoriale Società per azioni

Consolidated Non-Financial Statement pursuant to Italian Legislative Decree no. 254/2016 Sustainability Report 2019 Consolidated Non-Financial Statement 2019

Consolidated Non-Financial Statement

pursuant to Italian Legislative Decree no. 254/2016 Sustainability Report 2019

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Contents

LETTER TO STAKEHOLDERS ...... 4

1. THE GEDI GROUP ...... 6

1.1 - GEDI Group profile ...... 6 1.2 - The business model and economic performance ...... 15 1.3 - Structure and governance ...... 18 2. THE GEDI GROUP AND MATERIAL TOPICS ...... 24

2.1 - Stakeholders and stakeholder engagement ...... 24 2.2 - Materiality analysis ...... 26 3. THE GROUP'S ROLE AS AN INFORMATION PROVIDER AND RESPONSIBILITY TO THE COMMUNITY .. 28

3.1 - Our history, our values ...... 29 3.2 - Content quality, independence and responsibility ...... 33 3.3 – Social role and participation in the community...... 34 3.4 - Responsibility and digital communication...... 40 3.5 – Responsibility towards the community ...... 43 4 - HUMAN RESOURCES ...... 46

4.1 - Focus on human resources ...... 46 4.2 - Health and safety in the workplace ...... 50 5 - ENVIRONMENTAL IMPACTS ...... 52

5.1 - Management of paper and other raw materials ...... 53 5.2 - GEDI's environmental impact ...... 55 METHODOLOGY ...... 62

ANNEXES ...... 63

Annex 1 - Reconciliation table of topics relating to Italian Legislative Decree no. 254/16 and the main GRI Standards ...... 64 Annex 2 - Scope of Material Aspects of the GEDI Group ...... 65 Annex 3 – Focus on Human Resources – Reporting Table ...... 67 Annex 4 - Environmental impacts - Reporting Table ...... 70 GRI Content Index...... 72

INDEPENDENT AUDITOR’S REPORT ...... 78

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LETTER TO STAKEHOLDERS

GEDI Gruppo Editoriale is committed to offering information, culture, commentary and entertainment through its media in accordance with the principles of independence and freedom, with the awareness of the role that this activity plays in the formation of the citizen-reader’s ethical and moral values.

The Group’s mission is also to create value for all stakeholders by devoting the required attention to financial stability within an adverse market environment, while offering quality products based on highly socially and environmentally sustainable management decisions. In order to disclose our activities on the subject of sustainability, for the sixth year we are publishing a report prepared in accordance with the GRI international guidelines. Last year the Group adopted the updated version of the guidelines, the “Global Reporting Initiative Sustainability Reporting Standards”, in line with the “Core” approach.

In this document, we have adopted a format recognised at European level through which we address the various issues based on these themes: the Group’s commitment to informing the citizen-reader and its responsibility to the general public; social role and participation in the community; focus on human resources; and environmental impacts.

The Group will always retain a keen focus on these aspects of corporate life, aware of their importance in the creation of value both in economic and systemic terms.

GEDI Gruppo Editoriale S.p.A.

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1. THE GEDI GROUP

1.1 - GEDI Group profile

GEDI Gruppo Editoriale (“GEDI” or the “Group”) is one of the leading Italian media companies and operates in the communication sector, from the daily and periodical press and publishing sectors to radio, internet and advertising sales. GEDI publishes La Repubblica, La Stampa, Il Secolo XIX, thirteen local newspapers, the weekly magazine L’Espresso and other magazines. The Group also includes three radio national broadcasters, Radio Deejay, Radio Capital, and m2o. Furthermore, GEDI operates in the internet sector and sells advertising through the agency A. Manzoni & C. S.p.A., including on behalf of third-party publishers.

GEDI is committed to providing information, culture, commentary and entertainment through its media in accordance with the principles of independence, freedom and respect, with an awareness of its responsibility towards the formation of the ethical and moral values of its readership.

Daily Newspapers and Periodicals Digital

Advertising

Radio

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Daily Newspapers - La Repubblica

Founded in 1976, la Repubblica is a leading Italian newspaper with an average circulation of 198,800 copies per day (ADS 2019) and a daily readership of 1.9 million (Audipress 2019/II). La Repubblica has a national section present in all versions and nine local editions (Rome, Milan, Turin, Bologna, Genoa, Florence, Naples, Palermo and Bari). The various daily editions of the paper are accompanied by supplements including “Affari e Finanza”, which focuses on macro-economic and financial analysis and reports on leading national and international man- ufacturing businesses with reports and surveys; “Il venerdì”, the weekly magazine supplement that focuses on current and foreign affairs, reports, politicians and celebrities, and culture; “D - la Repubblica”, the weekly supplement aimed at women that focuses on current affairs, culture, fashion and events, trends and social change; “Robinson”, the cultural supplement published on Sundays which since May 2019 has gained greater identity and completeness to become an independent supplement separate to la Repubblica; and “Trova Roma e Tutto Milano,” the weekly guides that present the weekly highlights for each city, covering events, culture, entertainment, food, etc. In line with the previous reporting period, in 2019 the Sunday edition of la Repubblica continued to be accompanied by the magazine L’Espresso. Furthermore, new products associated with the newspaper have been launched, such as “Rep:”, a new mobile app designed to enable users to personalise editorial content in a highly innovative manner, with a selection of articles and news items chosen by the app based on the user’s browsing history/usage. Since February 2019, la Repubblica and the Group's other daily newspapers have been accompanied by “LIVE”, a monthly supplement dedicated to health, well-being and science, providing information based on social scientific data as well as practical information.

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Daily Newspapers - News Network

GEDI News Network is the group company that includes La Stampa, Il Secolo XIX and thirteen local newspapers, Il Tirreno, Messaggero Veneto, Il Piccolo, Gazzetta di Mantova, il Mattino di Padova, la Provincia Pavese, la Tribuna di Treviso, la Nuova di Venezia e Mestre, Gazzetta di Reggio, Gazzetta di Modena, la Nuova Ferrara, Corriere delle Alpi, and la Sentinella del Canavese, which have an average total distribution of around 351,000 copies per day (ADS 2019) and a daily readership of approximately 3.4 million people (Audipress 2019/II).

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Periodicals and Guides

The National Press Division includes the following periodicals and guides:

Founded in 1955, L’Espresso is a weekly magazine covering culture and politics, representing a point of reference for widespread and important segments of Italian public opinion. Its launch marked the start of the Group’s history.

Limes, the Italian geopolitics magazine, was founded in 1993 to become one of the most influential and author- itative mouthpieces of geo-political reflection.

Launched in 1986, MicroMega is the magazine of the democratic left and Italian liberalism. A cultural and political point of reference, it has long played an important role in Italian political debate with a strong anti-party politics, legalistic and secular identity.

National Geographic, the Italian edition of the famous American magazine established in 1888, was launched in February 1998. It focuses on geography in the broadest sense of the term, with a particular focus on high-quality photography. National Geographic Traveler features journeys that readers could take, sometimes of a particularly adventurous nature but always focused on the discovery of new experiences.

Le Scienze, the Italian edition of Scientific American, covers the most recent advances across all of the scientific disciplines, from physics and biology to medicine, environment science, geology and cosmology.

Mind, launched in 2018 as the evolution of Mente & Cervello, is the new psychology and neuroscience monthly magazine and discusses life, conflicts, emotions and relationships. It is affiliated with the German (Gehirn und Geist), US (Scientific American Mind) and French (Cerveau et Psycho) editions.

Published each year, le Guide di Repubblica have a strong local focus and occupy a position on the market with a pronounced link to the region, describing local sights, sounds and smells in the la Repubblica style, while for more than forty years le Guide dell’Espresso have presented photographs of Italy's vibrant and varied restaurant culture, a sector that constantly consolidates and embellishes its strengths while diversifying and modernising.

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Editorial initiatives proposed alongside the main publications

In 2019 GEDI launched various editorial initiatives in combination with its daily newspapers and periodicals which focussed on various fields of cultural and scientific communication. The most significant series grouped by theme are described below.

History - Come eravamo. Il romanzo degli italiani dalle origini all’unità d’Italia, an original series by Alberto An- gela that reconstructs Italy's great history through stories of everyday life written in accessible language; Le Grandi Civiltà, a series dedicated to exploring the great ancient civilisations, from Egypt to Maya, from ancient Greece to China.

Music - Von Karajan, a collection of audio CDs featuring a compilation of the conductor's most important works with the world's leading orchestras with works from Mozart, Beethoven, Bach, Brahms, etc.

Philosophy - Capire la filosofia, a collection of short texts exploring the ideas of the most esteemed ancient, modern and contemporary philosophers curated by current leading experts in the field including M. Cacciari, U. Eco, E. Severino and others.

Literature - La Biblioteca del mondo, a narrative series of great works of international literature, from the Congo to the United States, from Alaska to China and Argentina. Science; I Manga delle Scienze, a series dedicated to school subjects such as Physics, Mathematics or Algebra, with explanations and exercises delivered through manga comic strips accompanied by numerous exercises, definitions and theories usually associated with traditional textbooks.

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Digital

The mission of the Digital Division is to guarantee the digital development of the Group's brands across all digital platforms and to promote the diversification of GEDI's activities through new digital operations. The Digital Di- vision is therefore responsible for the development and online management of all of the Group’s main brands, as well as important international partnerships such as HuffPost Italia, Business Insider Italia and, since 2019, Mashable Italia.

Digital: significant results achieved in 2019

With an average of 5.13 million unique users on an average day and 25.8 million unique users a month on its sites (Audiweb, average figures for January-December 2019), GEDI ended the year as the fifth biggest operator on the entire Italian digital market (including international service providers and platforms like Google, Facebook and Amazon).

Repubblica.it confirmed its position as the leading Italian news website with 2.9 million unique users on an average day, representing a lead of 24% on the second biggest news website (Audiweb, average figures for January-December 2019).

The La Stampa.it website directed by GEDI News Network recorded an average Total Dig- ital Audience of 1,003,000 unique users on an average day (Audiweb average for January- December 2019).

With regard to the brands of GEDI News Network's local newspapers, the Il Secolo XIX website recorded an average daily Total Digital Audience of 73,000 unique users (Audiweb average for January-December 2019), while the average Total Digital Audience of the other local newspapers was 602,000 unique users per day, mainly consisting of mobile traffic (Audiweb average for January-December 2019).

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Radio

In the last thirty years, GEDI has developed its activities in the radio sector and the Radio Division currently includes the Group's three national radio stations, Radio Deejay, Radio Capital and m2o.

Radio Deejay was founded in 1982 by Claudio Cecchetto. With an average of 5.2 million daily listeners (RadioTer survey for 2019), it is an established leader in the entertainment sector and offers a plethora of successful programmes presented by well-known personalities such as Linus, who is also the network’s artistic director, Nicola Savino, Fabio Volo, Alessandro Cattelan, il Trio Medusa, Albertino, La Pina, and Luciana Littizzetto, Rudy Zerbi, Fabio Caressa, Ivan Zazzaroni at the weekend. The radio station drives music trends and has a strong relationship with the community thanks to events that place the radio station in direct contact with the audience.

Launched in the mid-eighties and with an average global listenership of 1.6 million people per day (RadioTer survey, 2019), Radio Capital has long been a point of reference for music enthusiasts with a preference for the classic tracks of the seventies, eighties and nineties, and combines music with entertainment and news reports. Since September 2018, under the management of the new director Massimo Giannini, long-established columnist of la Repubblica and TV pundit, the station has developed a new editorial approach aimed at optimising the news component - which has been expanded and is now also

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broadcast at weekends - balanced with a consistent focus on high-quality music as the broadcaster’s key value.

Acquired by the Group in 1998 under its former name Italia Radio, the station was restyled and relaunched as m2o in late 2002 to become a dance music station aimed at a young audience. Since 2010 it has expanded its musical range to include hit tracks while maintaining the high- energy appeal that has always characterised the station. With an average daily listenership of 1.7 million people (RadioTer survey, 2019) m2o boasts a unique identity in the radio industry and is the only station able to develop close affinities with young people while also appealing to older listeners. Since the end of 2018 the artistic director of m2o has been Al- bertino, one of Italian radio's best-known personalities.

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Advertising

The company A. Manzoni & C. is the sole advertising agency of the media outlets of GEDI and a selected group of third-party publishers. Manzoni is one of the top agencies on the Italian advertising market. Manzoni’s strength lies in its top-quality multimedia portfolio, with leading newspapers in the main market segments and a broad customer consultancy and support network. Aside from its sales service and its flexible and structured advertising solutions, Manzoni provides its customers with a system of information, databases, case studies, analyses and original market research.

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1.2 - The business model and economic performance

The Business Model

GEDI has decided to concentrate its efforts on a strategy developed around five main points:

• focusing on development by strengthening the traditional business with ongoing revisions of its publishing products, but also taking advantage of all new opportunities that the market may offer.

• leading the way in the business’ digital transformation in Italy, leveraging the position of the Group's brands and optimising the customer/subscriber acquisition and management process.

• affirming its position within the advertising market in accordance with the guidelines put in place by the internal agency.

• maintaining the profitability of the business in a context of persistent industry losses, adapting the cost structure to the changing revenue.

• developing the revenue and profit margins of the radio stations, focusing on relaunching the Group's smaller broadcasters (m2o, Radio Capital).

Oversight and digital strategy

In recent years the media industry has experienced a pronounced shift towards digitalisation. In response to this and to meet the new requirements of its users in the most effective way, since the 2000s GEDI has gradually embarked on a digital evolution that encompasses the development of new products, company processes and the organisation’s day-to-day activities. With a view to this transition, in 2019 GEDI's Digital Division focused its efforts on the following projects:

Digital products and platforms. As part of the activities on new digital platforms and with a view to continuous improvement and enhancement, in 2019 the new versions of the la Repubblica, la Stampa and il Secolo XIX websites were launched, along with the Italian version of the Mashable site, which enhances the Group's native digital range.

Audio, Video and Newsletters. In 2019 the production and distribution of video content continued, providing live news footage and reports with themed video clips across all of the Group's websites. The Group's audio content was also improved: new podcasts were accompanied by the audio version of a daily selection of articles taken directly from la Repubblica and adapted for Rep:. Since September, Repubblica’s international correspond- ents have put together a selection of new newsletters aimed exclusively at Rep: readers to offer a round-up of world news.

Technological projects and funding. In terms of technology, GEDI's Digital Division secured funding from Goog- le's Digital News Innovation (DNI) Fund for the “Come Together” project, aimed at creating an engagement platform that promotes interaction between the local daily newspaper departments and readers, as well as from the Google News Initiative (GNI) “Propensity to Subscribe” project, which focuses on the definition of an algo- rithm to promote registrations and paid subscriptions to a digital subscription service. The integration of the

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Group's systems created the ideal conditions for the launch of the CRM system, aimed at optimising user relations and maximising profits.

Data Lake. In partnership with the advertising concessionaire Manzoni, GEDI has continued the project to implement a Group Data Lake to enable integrated data management for advertising and editorial purposes.

GEDI's Economic Value

The statement of Economic Value is a reclassification of the Consolidated Income Statement and represents the wealth generated and redistributed by GEDI. In particular, this statement presents the financial performance, the wealth distributed to parties deemed to be stakeholders in the Group or the capacity of the organisation to create value for its stakeholders.

Statement of Economic Value of GEDI

Direct economic value generated and distributed

(€ million) 2017 (*) 2018 2019 (**)

Net revenue from sales 615.8 648.7 603.5

Financial income 8.2 0.0 0.0

Other income 10.8 15.7 8.3

Economic Value generated 634.8 664.4 611.8

Operating costs 362.5 381.5 340.3

Personnel 211.3 249.9 237.3

Lenders 9.1 22.3 23.9

Shareholders 0.1 0.1 0.0

Public Administration 150.5 -1.1 -24.5

Local community 0.0 0.0 0.0 Economic Value distributed to stakehold- 733.6 652.6 577.0 ers Depreciation, amortisation and impair- 24.6 44.2 163.8 ment losses Loss for the year -123.3 -32.34 -129.0

Economic Value held by the Group -98.8 11.8 34.8

(*) The data for 2017 described above has been reclassified for comparative purposes with the retrospective application of IFRS 15. (**) From 1 January 2019 the Group has applied the new accounting standard IFRS 16 - Leases which provides a new definition for the term “lease” and introduces criteria based on the control (right of use) of an asset to distinguish leases from service supply contracts, identifying the following defining characteristics: the identification of the asset, the right to re- placement of the same, the right to obtain all of the economic benefits resulting from the use of the asset, and the right to

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direct the use of the asset subject to the lease. When adopting this standard, the Group used the modified retrospective application model; in view of this, comparative data has not been restated.

Net revenue from sales represents revenue from publications and advertising, the sale of online and mobile services, the transfer of rights and trademarks and the sale of content and other services.

Financial income represents income/expense from dividends, securities and equity investments, interest income on current accounts and short-term deposits, exchange gains, etc.

Other income consists of operating income deriving from grants, capital gains on the disposal of assets, prior year income and income from equity accounted investments.

The three elements described above comprise the Economic Value Generated, which in 2019 was €611.8 million (down on the € 644.4 million in 2018).

The distribution of Economic Value is broken down as follows:

• Operating costs totalled € 340.3 million (-10.8% compared to 2018), of which costs for services constitute the majority (editorial costs, publishing fees and printing and other work carried out by third parties, etc.).

• The distribution of Economic Value to personnel equalled € 237.3 million (-5% compared to 2018), represented for the most part by the wages and salaries of GEDI Group employees.

• The distribution of Economic Value to lenders in 2019 was € 23.9 million (+7.3% compared to 2018).

• The distribution of Economic Value to shareholders was practically zero and constituted non- controlling interests (profit attributable to non-controlling shareholders of GEDI News Network S.p.A. and Mo-Net S.r.l.). This figure refers to the allocation of third party shares in 2018 as, at the time of publication of this document, the Shareholders’ Resolution for 2019 was not available.

• The remuneration of the Public Administration, in the form of taxes, came to € 24.5 million.

• As regards the local community, GEDI made donations to charitable organisations for € 39,000.

During the year, the Group did not receive any grants from the Public Administration, as defined by article 1, paragraph 125 of Law no. 124 of 4 August 2017, amended by article 35 of Legislative Decree no. 34/2019, or from associations similar to the Public Administration, and did not pay contributions of any kind to political parties or politicians. During the year the Group did not receive grants from the Public Administration or associations similar to the PA and did not make donations of any kind to political parties or politicians.

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1.3 - Structure and governance

The structure of the GEDI Group

As at 31 December 2019, GEDI Gruppo Editoriale S.p.A., the parent of the GEDI Group, is listed on the Electronic Stock Market (STAR segment). The table below shows the investments consolidated according to the line by line method and the equity method. Compared to the previous year, the sale of the 30% investment in Persidera S.p.A. was finalised on 2 December 2019. In the table, fully consolidated companies falling within the reporting scope of this report are indicated in red.

GEDI Gruppo Editoriale – Ownership Structure as at 31 December 2019

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Corporate Governance System

The corporate governance system of GEDI S.p.A. enables the achievement of strategic objectives while ensuring effective, efficient and correct governance, in compliance with institutional and legal provisions, with regard to all stakeholders, as described in more detail in the Report on Corporate Governance and the Ownership Struc- ture. GEDI’s governance system consists of the following corporate boards and committees: the Board of Direc- tors, the Board of Statutory Auditors, the Internal Committees and the Shareholders’ Meeting.

The Board of Directors was appointed on 26 April 2018; directors serve for a period of time established by the Shareholders when appointed and in any case for no longer than three years. They can also be reappointed. The mandate of the current Board will expire on approval of the Financial Statements at 31 December 2020. The Shareholders’ Meeting held on 19 April 2019 confirmed the appointment to the Board of Directors of Laura Cioli, co-opted by the Board of Directors on 26 April 2018. Also on 19 April 2019 the Board of Directors confirmed the appointment of Laura Cioli as CEO and General Manager of the parent, the latter position being held until 31 December 2019, on which date - pursuant to the Resolution of the Board of Directors of 16 December 2019 - the role of General Manager of the parent and Group was assumed by Maurizio Scanavino. At the meeting of 26 April 2018, the Board of Directors also appointed Monica Mondardini and John Elkann as Deputy of the Chair- person. It is noted that the Board of Directors, at the meeting of 23 June 2017, appointed Carlo De Benedetti as Honorary Chairman and he stepped down on 28 October 2019. On 6 November 2019 Elisabetta Oliveri resigned from the Board of Directors of the parent.

At the end of the year to which this Sustainability Report refers, the Board of Directors had fifteen members, fourteen of which were in office, consisting of eleven men and three women. Most directors of GEDI S.p.A. are over 50 years old.

Internal control and risk management system

The internal control and risk management system is the set of rules, measures and organisational structures that, beginning with the adequate identification and evaluation of the risks to which the parent and its operating sectors are exposed, enables risks to be managed and monitored in an efficient and timely manner. This system, as outlined in the Report on Corporate Governance and the Ownership Structure that can be consulted in the Governance section of the Group's website, is based on the general principles and guidelines approved by the Board of Directors and subdivided as follows:

• Control and Risk System which, in addition to the principles expressed in the guidelines, includes the provisions of the Articles of Association and internal regulations regarding the allocation and delegation of responsibilities, the system of delegation, procedures and risk areas mapped by the Organisational, Man- agement and Control Model pursuant to Italian Legislative Decree no. 231/01 (the “Organisational Model”) and, finally, risk assessment goals and methods and provisions regarding the administrative, reporting and financial system.

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• Tasks of the bodies and departments of the Control and Risk System, which defines the departments responsible for the Control and Risk System in terms of their roles and expertise and in accordance with the indications in the guidelines and in the applicable legislative, regulatory and internal provisions.

• Risk management, structured into three different levels of control distinguishing between internal departments, which identify risks and carry out management actions, risk management departments, which carry out constant analysis and monitoring, and the Internal Audit department, which oversees the func- tioning of the System and provides independent assessments.

The definition of the nature and the level of risk compatible with the Group’s goals is the responsibility of the Board of Directors, following the opinion of the Internal Control and Risk Committee; to this end, the suitability of the internal control and risk management system with respect to the characteristics of the business and the risk management profile assumed is assessed at least once a year.

The review, discussion and definition within the Board of Directors of the nature and level of risk compatible with the Group's goals is subject to critical analysis. This analysis considers the probability/impact assessment carried out by the Risk Manager and preventively established by the Internal Control and Risk Committee in consideration of the risk parameters of the various fields of analysis.

The Risk Manager works in close collaboration with process managers and the Head of Internal Audit, carrying out a complete review and constantly monitoring the risks, and considering any changes to the boundaries made in the course of the year at organisational and corporate level.

Specifically, the activities of the Risk Manager consist of the following actions:

• Mapping of group processes and implementation of the relative updates, when necessary.

• Annual identification of internal and external risks in reference to individual processes.

• Measurement of risks in terms of probability/impact and assessment of the effect on different affected perimeters.

• Analysis of risk mitigation factors and consequently the residual risks to which the Group is exposed.

• Presentation of the results of these actions to the Internal Control and Risk Committee for review and preliminary discussion, prior to the presentation of the same to the Board of Directors.

The aforementioned activities are carried out according to the guidelines of the ERM - Enterprise Risk Manage- ment framework published by the Committee of Sponsoring Organisations of the Treadway Commission (COSO report), supplemented by the guidelines developed in October 2018 for the application of ERM to Environmen- tal, Social and Governance risks.

In addition to the risks identified in the Group's “Annual Financial Report”, with regard to the topics covered by Articles 3 and 4 of Italian Legislative Decree no. 254/16 such as environmental, social and staff-related topics, human rights and the fight against active and passive corruption, GEDI has also identified the following critical topics:

• Topics relating to staff. Following the tightening of the market, the reorganisation of corporate and organisational structures and changes to the scale of the workforce, the risk of strained relations between

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the Group and trade unions has emerged, resulting in strikes and/or negatively impacting the organisation of work. In order to maintain an open and transparent dialogue with employees and freelance workers, develop relations and support employees and journalists, the Group has implemented various concrete actions regarding the planning and management of resources, such as solidarity programmes and welfare policies.

Risks related to staff management were also identified, particularly as regards the selection process, regional distribution, and the lack of flexibility and mobility of resources. To mitigate these risks, the Human Resources Department has taken steps to improve the recruitment criteria and provide the necessary training to its employees to promote mobility.

• Social topics and human rights. One of the main risks identified was the possibility of non-compliance or inadequate observance of legislation regarding occupational health and safety, with specific reference to training and equipment. To mitigate this risk, the Group has developed specific action plans to periodically monitor training and health check activities. A specific operating protocol in line with the Organisational Model was also defined.

Furthermore, the risk of non-compliance with legal provisions regarding privacy and the processing of personal data, advertising regulations and copyright, which could expose the Group to the risk of sanc- tions and civil or criminal liability, was also evaluated. As well as appointing the Group Data Protection Officer (DPO), GEDI has defined actions and plans to constantly monitor regulations and reference case law, formulating guidelines and codes of conduct and providing specific training to employees.

• Fight against active and passive corruption. To avoid the risk that the control systems for the management of conflicts of interest (Related Parties) are inadequate and to continually monitor the Group's management of this issue, GEDI has adopted a specific procedure for the management of related party trans- actions.

• Environmental topics. The risk of non-compliance with environmental protection laws is mitigated by the presence of an internal structure and the appointment of external companies with expertise in the sector, with annual audits carried out at printing facilities with the consequent assessment of any necessary action.

In line with the provisions of Law no. 179/2017, GEDI has also implemented a portal (the “Whistleblowing Por- tal”) where online reports can be made which protect the confidentiality of the whistleblower during the management of the reports. A management policy has also been adopted. This tool supports and supplements the other methods (email, post) in place for the submission of reports, also pursuant to Legislative Decree no. 231/2001. Reports received through the application of the aforementioned policy have been handled by the respective Supervisory Bodies and Internal Audit Departments, guaranteeing the confidentiality of the whistleblower, protecting the person to whom the report refers and revealing the partial grounds of the report. The manager of the Internal Audit Department periodically reports the results of the reporting and analysis activities to the control bodies.

The Whistleblowing Portal can be accessed at https:/gedispa.segnalazioni.net and via the link in the “Services” section of the group website.

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The Organisational Model and anti-corruption

In order to ensure correctness and transparency in the performance of its business and parent activities and to prevent the crimes envisaged by Legislative Decree no. 231/2001, the Parent and its subsidiaries have adopted an “Organisational, Management and Control Model” that is periodically updated in order to ensure the continuous correspondence of the same with any changes to legislation or the group structure. An extract from the Organisational Model can be viewed in the “Governance” section of the corporate website.

On 5 March 2018, the parent’s Board of Directors approved the revision of the Organisational, Management and Control Model pursuant to Italian Legislative Decree no. 231/01, proposed in agreement with the Supervisory Body and based on the prior approval of the same. Similarly, during the year other Group companies approved the revision of the current Organisational Models, in line with the resolutions taken by the Parent. GEDI S.p.A. has also carried out activities to update the Organisational, Management and Control Model pursuant to Italian Legislative Decree no. 231/01 in order to ensure its alignment with newly introduced legislation.

Topics regarding the updates to the Organisational Model and the appointment of the Supervisory Bodies of Group companies were subject to specific resolutions by the relevant Board of Directors and were notified to employees.

The Group provides both general training on issues pertaining to the Organisational Model for its employees and more specific training for employees that work in specific risk areas, the supervisory body and those responsible for the internal audit. The content and frequency of the training courses are defined on a case by case basis, and checks are also carried out on attendance levels and the quality of the content of the courses. Partic- ipation in training courses is compulsory. For more detail on the hours of training delivered on the Organisational Model, see the section relative to training hours in the “Annexes” section.

The Group promotes the awareness and observance of the Organisational Model, including amongst consult- ants, the various types of freelance workers, contracting businesses and their employees, self-employed workers who work for the Group, customers and suppliers. The Code of Ethics and its distribution

The Code of Ethics is the set of ethics/behavioural rules that are transmitted to all employees on an ongoing basis, the consistent application of which is continuously monitored. The Code of Ethics clearly and transparently defines the set of values that inspire the Group for the achievement of its objectives. Therefore, the activities of all Group companies must comply with the principles expressed by the Code. GEDI Gruppo Editoriale S.p.A. recognises the importance of ethical and social responsibility in the management of its business affairs and activities, and is committed to respecting the legitimate interests of its stakeholders and the general public. At the same time, it asks its employees and those who work within the Group companies to comply with the company rules and the tenets established in this Code.

The Group has made a formal commitment to promoting awareness of the content of the Code of Ethics and the applicable company processes amongst all employees: all new employees are given a copy of the Code of Ethics. A similar awareness-raising activity on the values and principles expressed in the Code of Ethics is carried out among freelance workers, suppliers and customers of all types.

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Relations with the financial community

GEDI takes steps to establish and maintain an effective dialogue with its shareholders and the market, using various forms of communication such as the presentation of parent and Group results at shareholders’ meetings, meetings with financial analysts and institutional investors in Italy and abroad, the circulation of press releases to the general public and presentations by making the corporate documentation envisaged by legislation available on the group website. Furthermore, GEDI observes the principles of the Market Disclosure Guidelines and has appointed a head of the Investor Relations unit to handle the flow of information addressing the shareholders, the financial analysts and institutional investors, in observance of the rules established for the disclosure of group information and documents.

For more information on the procedure for the management and public disclosure of confidential documents and news, see the “Handling corporate information” section of the annual Financial Report.

In November 2018, GEDI entered into the STAR segment of Borsa Italiana (segment for securities with strict requirements in terms of transparency, liquidity and corporate governance). With this request, the Group, which already has a corporate governance system in line with the highest international standards, is working towards further developing its relationship with the financial market, offering greater visibility of its corporate initiatives, with the aim of enhancing the Group’s value.

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2. THE GEDI GROUP AND MATERIAL TOPICS

2.1 - Stakeholders and stakeholder engagement

For many years, GEDI has been committed to an important journey of sustainability with the aim of guaranteeing a balance between the different activities of the Group and their environmental, social and economic impacts on the environment and society.

The adopted approach is based on the development and maintenance of a relationship of mutual trust between the Group and its stakeholders, as well as considering the interests of stakeholders in order to reach the company objectives, observing the laws and the principles of honestly, impartiality, reliability, loyalty, correctness, transparency and good faith, always while respecting and protecting human life.

GEDI maintains an open dialogue with its numerous reference stakeholders who operate within the scope of its activities, using the various communications tools at its disposal. The following graph shows the map with the identified stakeholders, which in 2019 remained unchanged from the previous year; the stakeholder “the Public” is represented by various categories of users who can be subdivided into: buyers of the newspapers, subscribers, radio listeners, online users, TV viewers and satellite subscribers.

GEDI - Stakeholder Map 2019

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To pursue the Group’s objectives, it is fundamental to develop forms of dialogue and ongoing interaction with internal and external stakeholders in order to understand and take into consideration their various requirements, interests and expectations. In particular, within the dynamic and competitive scenario of intense change pervading the publishing sector and the media, being capable of anticipating change and identifying emerging trends through stakeholder engagement enables the Group to generate shared, ongoing added value over the long term.

GEDI constantly monitors its relations with stakeholders in order to receive suggestions to enable it to better pursue its sustainability strategy. This is why GEDI works every day to establish trusting relationships with its stakeholders, based on the principles of transparency, openness and dialogue. The Group’s stakeholder communications approach has evolved continuously over time, giving rise to a range of initiatives aimed at making the best use of the multiple channels available. One example of this structured and continuous stakeholder engagement process is the series of activities carried out by the External Affairs Head Office Division, which is responsible for managing relationships between the Group and the media primarily as regards corporate communications and handling relationships with other Group stakeholders. Engagement activities include but are not limited to: participation in conferences, periodic meetings and dedicated events, user satisfaction surveys, customer feedback, focus groups, events, conventions, etc.

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2.2 - Materiality analysis

In 2019, GEDI updated its analysis of the material topics relative to the Group and its stakeholders. To this end, in line with previous years the best practices established in the publishing sector, relevant studies and publications and the topics referenced by Legislative Decree no. 254/16 were considered. Consequently, specific work- shops were conducted in-house, during which management presented their assessments of the various topics and their relevance for the Group. On the basis on the analyses carried out, the number and definition of the material topics were largely unchanged, with the exception of the topic “Promotion and local engagement”, which in 2019 was renamed “Information, social role and responsibility towards the community”. To promote even greater interaction with stakeholders, and in line with the public engagement initiatives implemented in 2018, an internal stakeholder engagement project was launched to gather opinions on the Group's sustainability topics. An ad hoc questionnaire was sent to group employees whose responses made a significant contribution to the identification of the main impacts that the Group’s activities have on the various phases of the value chain.

The results of the materiality analysis for 2019 were then subjected to the Internal Control and Risk Committee of GEDI S.p.A. during the meeting of 13 December 2019.

The overall analysis therefore made it possible to confirm the material aspects identified in the previous year, namely those that have significant impacts for the Group from an economic, environmental and social perspec- tive, and which substantially influence stakeholder assessments and decisions. Indeed, combining a strategic business approach with stakeholder expectations is key to enabling the Group to continue to generate shared value over time. The analysis was carried out in compliance with the criteria defined by the Global Reporting Initiative (GRI Standards).

In line with previous years, the material topics relate to five key areas:

1) economic and corporate responsibility;

2) governance and compliance;

3) product responsibility;

4) responsibility towards employees;

5) environmental responsibility.

These topics are reported in this document. For the reconciliation of the material aspects identified, the GRI standards and the topics referred to in Legislative Decree no. 254/2016 (social, staff-related, anti-corruption, diversity, etc.), please refer to the table in Annex 1. For information on the types of impact that the material topics may have on the Group and/or its Stakeholders, reference should be made to the table in Annex 2. The GRI standards considered in this document and their location in the text are provided in the GRI Content Index.

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The priorities expressed both by the GEDI Group and by stakeholders are processed and represented in the Materiality Index below:

GEDI – Materiality Index 2019

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3. THE GROUP'S ROLE AS AN INFORMATION PROVIDER AND RE- SPONSIBILITY TO THE COMMUNITY

GEDI acts transparently and responsibly with respect to society and its stakeholders, holding fast to the concepts of quality and integrity. Considering the effects of its activities on the social development and general welfare of the community, when creating and distributing content and interacting and engaging with users GEDI is committed to providing an accurate and robust news service that respects the different religious, political, scientific and social views of the public. To do this, the Group interacts with users continuously while also maintaining its independence from all types of influence. In the pursuit of its mission, GEDI is committed to boosting public awareness surrounding sustainability by encouraging constructive and respectful debate. GEDI contributes to sustainable local development by supporting the communities in which it works and organises social events and initiatives on all of its technological platforms.

The following pages aim to express the values, history and commitment of the Group and to report, by way of non-exhaustive example, on the events of 2019 achieved through initiatives, surveys, projects and all of the other activities that the Group carries out in pursuit of its corporate mission and in the exercise of its social role, in line with the reporting scope of Legislative Decree no. 254/2016.

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3.1 - Our history, our values

Values, memory (by Bruno Manfellotto)

The clearest definition can be attributed to rights, education, culture, community and the pro- the imaginative genius of Umberto Eco: “detonator tection of the region, our past is a frequent point effect”. He was referring to the strength, to the in- of reference. The best constructions have robust credible ability - first of "L’Espresso", and then of foundations. And when those constructions take "Repubblica” under Eugenio Scalfari and the local their place in history not as bricks and mortar but newspapers gradually acquired with foresight by as ideas, principles and a sense of responsibility, it Carlo Caracciolo - to raise issues, to rouse spirits, to is the memory we must preserve. In fact, what denounce abuse and injustices: in short, to "cause keeps a working group (or a country!) alive, espe- scandal". Forcing readers to face up to a reality that cially when creating a daily record, if not memory, was otherwise denied and changing the very face upholding teachings and culture? Generations may of journalism. pass, but it is the ancient roots which give rise to Years later, in the seething climate of the new ones: without memory those roots wither and 1968 movement and the hot autumn, when it are lost. The true challenge is to protect that herit- might have succumbed to the trend for misinfor- age without being overwhelmed by nostalgia: pre- mation circulating at the time, instead the founding serving good journalism and the values it brings - a fathers oriented themselves towards information, rigorous working method and the strong convic- nothing more: rigorous, clear, and free from ideo- tions that inspire it; and updating those elements logical prejudice. Their intention was to uncover that are no longer enough to understand the hidden truths and crimes and attribute responsibil- changing world without losing the best of its his- ity, promoting better engagement and knowledge tory. All the while preserving our identity. among the readership. Someone else, Giampaolo Perhaps an example would explain this bet- Pansa perhaps, once wrote that the guys on Via Po ter. In January 1956, three months after L'Espresso devoted to the difficult task of accurate reporting first hit the shelves, it ran with a headline that gradually became seen as “pugnacious youngsters, would go on to make history: “Capitale corrotta = rigorous moralists, secular to the extreme, honest Nazione infetta” - Corrupt capital = infected nation. progressives.” He missed out the adjective “pas- It expertly summarised the essence of a sensational sionate”, which goes without saying. piece of investigative journalism about real estate It is no coincidence that in this 2019 edition speculation in Rome by Manlio Cancogni, a writer of the GEDI Gruppo Editoriale Consolidated Non Fi- turned journalist (the director Arrigo Benedetti nanzial Statement, which goes beyond mere fig- said that L’Espresso was a weekly novel). The inves- ures and the bottom line to instead express the tigative report, a new and innovative type of re- commitment devoted every day by hundreds of porting unknown to other newspapers - already men and women to promote the very best of Italy's contained its trademark signature - the clear re- ethical and moral values towards socially sensitive fusal of unfair practices that threaten healthy com- topics such as the environment, diversity, human munities: real estate speculation regardless of the

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law, the all-powerfulness of the big property com- does not exist: but the true scandal is to close our panies; the perversely interwoven nature of money eyes to it. Sometimes, when following the road less and politics; corruption in the very heart of the cap- travelled, mistakes are made: but wouldn't it have ital; the damage to the community in the name of been worse to stay silent and simply accept the of- business. “La Repubblica” wouldn't be launched for ficial version of events? And so, time after time, our another twenty years, but those same principles newspapers have served as the “detonator” that would flow through its DNA - “a certain idea of It- Eco predicted, discovering facts, revealing new top- aly” - to be defended and protected. ics of interest and prompting others to deal with When it went to print, no-one refuted its topics that had so far been ignored. Offering the contents. Rather than humbling them, the silence readership more news and culture, creating an in- confirmed the journalists’ convictions: if this was trinsic value that cannot be measured in mere eco- how things were in Rome, they said, thinking of the nomic terms. work that awaited, then the same could be said of It was in these pages that subjects now so many other Italian cities. The fact was that the confined to specialist magazines were discussed: media at that time kept silent, glossing over the is- health and the environment, for example. And we sues and fuelling the power with a kind of reveren- continue to travel these roads today, with dedi- tial fear. According to legend, when faced with cated publications such as Le Scienze, “Mind”, and scandals and corruption the celebrated newspaper “National Geographic". A common thread con- editor Mario Missiroli was wont to exclaim: “We nects the investigative reports of the fifties and six- need a newspaper!” Indeed; a newspaper to report ties into food crime or “health pirates” with those on the things he clearly could not publish in his written in later years about the methanol wine own... scandal or to discredit the bogus Di Bella cancer “No-one covers public morality,” Benedetti cure and the disproved Stamina method. And it is said, summing up this scandalous silence. True, but clear that the spirit that now drives L’Espresso and asides from rare exceptions, the newspapers were i to sound the alarm about climate change, to sup- also silent on other things. The press portrayed the port the fight of young activist Greta Thunberg or reassuring image of a happy, contented Italy, one to expose “Tutte le Ilva d’Italia”, Italy’s polluting without unemployment or poverty. But this was factories, is the very same spirit that once led An- not at all the case. In 1959, journalists from L'Es- tonio Cederna - one of the earliest environmental presso decided to retrace the streets, towns and reporters - to denounce the deterioration of Italy's the countryside travelled by the parliamentarians coastline, relentless construction in cities and of the Franchetti-Sonnino commission who in 1876 widespread unregulated activity. had conducted the historic "Poverty Inquiry", with Furio Colombo's reports from the revolts in photos and reports that documented that little or Harlem's black ghettos in the sixties show the same nothing had changed. Eighty-three years later. The civil responsibility that, more recently, drove Fab- headline: “L’Africa in casa,” Africa on our own door- rizio Gatti to uncover the modern slave trade in the steps. Mediterranean. Indeed, the pro-divorce and abor- Civil passion, moral tension. These values tion campaigns in the seventies undoubtedly laid have endured until this day. Every now and then, the foundation for today's civil rights campaigns for someone tries to belittle this work with talk of adoption, civil partnership and respect for diver- “scandalism”, as though to suggest that the scandal sity. The battles for “public morality” so beloved of

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Arrigo Benedetti can be seen in both our past and the problems that affect local people the most. Is- present. Like one great novel, over the years the sues like the environment and recycling. For exam- pages of L'Espresso and La Repubblica have uncov- ple, Il Mattino di Padova and the other three news- ered the Fiumicino scandal, the Sindona collapse; papers in Veneto (Treviso, Belluno and Venice) the cancer of P2, the Tangentopoli (bribesville) of have opened their pages to reader contributions then and now; the great tax evasion uncovered by that highlight and describe ways to reduce the use the Panama papers; the new sacking of Rome at of plastic. The Messaggero Veneto in Udine and Pic- the hands of the “Four kings” of the Mafia; and the colo in Trieste have signed up to the initiative and events at Hotel Metropole in Moscow between set a good example by making the publication en- Russian mediators and Lega politicians. And the list tirely plastic-free. goes on. In some ways, it could be said that these in- Politics, economics and culture have al- itiatives reflect and build upon the intuition shown ways been the three pillars of L’Espresso and La Re- by Giulio De Benedetti when, in late 1955, he pubblica, which were the first to report economic launched the ever-popular column “Specchio dei facts as a metaphor for a continually evolving coun- tempi” - Mirror of our times - in La Stampa, the first try: bringing to light the manoeuvres of power, ex- and now longest-running example of tangible col- plaining the meaning of large financial transac- laboration between the newspaper and its reader- tions, fighting against privileges and monopolies in ship. Today, for example, the Tirreno runs stalls in the name of the market economy, to ensure that squares in many Tuscan towns and cities to connect everyone has fair access to the market. with the community and listen to the needs of the Having abandoned the academic tones of public directly, and organises tours of historic vil- Elzevir, the cultural pages have become the focal lages - part of the unique heritage of the Tuscany point for new trains of thought, opening debates - region - not only to promote their beauty but also the most recent one on elitism and power, a key to ask for support in protecting and restoring them. theme during the period of economic recession In Padua Il Mattino takes readers to visit to Giotto’s and great social inequalities - presenting personal- frescoes, both to promote culture and also to mon- ities, fighting against censorship and encouraging itor the condition of the works. The Provincia has reading. Promoting culture rather than academia brought young people, residents and shopkeepers means fighting for better schools, for education in Pavia's old town together to define a shared reg- and for high-quality teaching. It means fighting ulation for the city's nightlife. The newspapers en- against misguided reforms, as in the recent at- gage with the public in several ways, reminding tempt - exposed by a Repubblica campaign - to re- them to exercise their rights, such as in the case of move history from high school exams. Memory the services offered by “Tirreno” to protect against cannot be wiped out with the stroke of a pen. harassing phone calls from irresponsible commer- Indeed, listening to citizens, building com- cial operators, and also by promoting good prac- munities and promoting the region - understood as tices of sport, well-being and health, like Radio the heritage and values that represent a communi- Deejay does through its “Deejay Ten” podcast. The ty's identity - is the main mission of the Group's lo- relationship with the community is also consoli- cal papers. We do this through our widespread dated through the websites: the “community” of news service and special initiatives dedicated to

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local newspapers has just reached 320,000 sub- Years have passed but the newspapers, scribers who take part in the newspapers’ initia- magazines and radio stations continue to distin- tives and help to gather news. A great wealth. guish themselves through their undeniable charac- Much has changed since L’Espresso was teristics: respect for the readership - which has launched on 2 October 1955 and La Repubblica hit grown enormously - that has always formed a co- the shelves on 14 January 1976, but a common hesive and connected community, as proven by thread runs through our history that has never the success of the “Repubblica delle idee", an op- been severed. When Gruppo Editoriale L'Espresso portunity for debate and shared reflection; the use acquired the company that publishes La Stampa of clear, effective and never mediocre language; and Il Secolo XIX in 2016, and completed the mer- the platform offered to different, sometimes con- ger to become the newly entitled GEDI Gruppo Ed- tradictory opinions; the sincere declaration of its itoriale SpA in 2017, in some ways the long-held point of view, at every junction. With no ideological dream of Carlo Caracciolo, who had followed the or political restriction, our newspapers have aimed two newspapers with their national prestige and to interpret and protect the heritage of shared val- solid links to the regions and their communities, fi- ues and civil rights that comprise the social fabric nally came true, bringing together Genoa's daily of our country, in an attempt - perhaps not always newspaper, relaunched by Piero Ottone, and Tu- successful, but undoubtedly sincere - to help to rin's flagship publication, instilled with the values provide accurate news and information to enable represented by men such as Norberto Bobbio, Italy to grow with complete freedom. Carlo Casalegno, Alessandro Galante Garrone.

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3.2 - Content quality, independence and responsibility

GEDI is inspired by the principles and values of its Code of Ethics and is committed to ensuring quality, plurality and diversity, also with a view to compliance with industry regulations.

To ensure the high quality of all of its products, GEDI operates with the utmost respect for freedom of expression, a matter of fundamental importance for any media organisation. Guaranteeing content plurality and freedom of expression by providing an independent product is a fundamental value and constitutes the most basic asset for a publisher, which goes hand in hand with the desire to offer the highest number of products to an increasingly broad audience of users. At the same time, the Group guarantees compliance with standards and protects the intellectual property of every content provider.

In the development of its publishing products, the Group does all of the groundwork to ensure that journalists, artists and other freelance workers can act in accordance with the principle of editorial independence, which translates into the development of quality content that is not influenced by interests aside from those of journalism and the right to truthful and correct information.

The Group also works to improve and promote the access and right to information for all, including mi- norities, people with disabilities and isolated communities.

The Code of Ethics adopted by La Repubblica outlines the standards aimed at providing traceable news which corresponds to precise ethical principles in order to guarantee its contents. To do so, the GEDI Group - through its publications - has signed up to the Trust Project, an international consortium of media and digital companies, introducing into its own digital content the “trust indicators” which help readers to choose high quality, traceable information certified according to the code established by the organisation and shared with partners.

GEDI is a member of the Leading European Newspaper Alliance (LENA), founded in March 2015 and committed to developing suitable responses to the changes affecting the journalism industry.

GEDI is also a member of the FIEG (Italian Federation of Publishers and Newspapers), whose goals are freedom of information, the cost effectiveness of publishing companies, the development and spread of the mass media as a vehicle for information and advertising, and the protection of the rights and moral and material interests of its members.

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3.3 – Social role and participation in the community

As indicated above, GEDI contributes to sustainable local development by supporting the communities in which it works and organises social events and initiatives on all of its technological platforms. This section aims to describe some of the Group’s main initiatives carried out or launched in 2019.

La Repubblica delle Idee (Bologna, 7-9 June 2019) - The Repubblica

festival has found its home in the city of Bologna. Since 2012, after various events in major cities throughout Italy, from north to south, the great cultural and entertainment event continues to draw a huge audience to Bologna. Over 50,000 people attended the three-day festival in 2019 alone.

Around a hundred speakers have participated in the event over the

years. From morning to late at night, Bologna hosts the Repubblica Festival in its halls and squares.

Interviews, talks, debates, concerts, stage performances, readings: all centred on a new vision of the world and social issues, perceiving the transformations of a society in constant evolution.

As well as politicians, the great thinkers of our time - artists, writers and intellectuals - have turned our Festival into a point of reference for over one and a half million readers and citizens since 2012 to the present day.

On life (4-5 October 2019) - The first festival organised by Repubblica devoted entirely to tech-

nology, open to the public and held in the centre of Milan. Organised in collaboration with Lena, the event welcomes leading national and international scientific experts who have made history with their discoveries: Kasparov, Zuboff, Levine and Lucy Hawking are just some of the festival's previous speakers.

The digital world, artificial intelligence and the new frontiers of communication are discussed over two days, aiming to pinpoint the drivers of tomorrow’s world. Hundreds of people come together for a packed schedule of events at Milan's Teatro Franco Parenti.

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L’Alfabeto del Futuro - The world turns ever more rapidly and offers us possibilities that until a short time ago were unimaginable: meanwhile, we have to become increasingly prepared in order to take advantage of these opportunities and not find ourselves behind the times.

The innovations that affect our daily actions and those of our fami- lies require us to deepen our knowledge and awareness of this epochal change. For this reason, La Stampa and the daily newspapers of the GEDI News Network Group have embarked on a journey to help readers to gain a better grasp of everyday language and learn the “alphabet of the future”, aiming to provide an understanding of the things that are rapidly transforming our lives. In Autumn 2019, GEDI News Network launched a series of public events in some of the cities where the Group's main offices are located: Genoa, Alba, Padua, Trieste, Mantua, Livorno and Modena.

Issues such as health, food, transport, the climate, automation, finance, energy and telecommunications will be explored extensively by institutions, associations, entrepreneurs and readers. The tour will con- clude in Spring 2020 in Turin with a two-day event to present the best experiences of the event and to summarise the findings of this investigation into the changing world.

Arena Robinson - This has become a regular event at Italy's book fairs. From Turin to Rome (Salone del Libro and Fiera della Piccola e Media Editoria), the Robinson stand offers high quality culture and embraces the most important topics of the year.

Culture, politics, society, economics and new literary or scientific works make Arena Robinson the perfect place for debate between the speakers themselves, as well as providing an opportunity for

engagement with an increasingly large audience. Schools are constantly involved, much to the ap- preciation of teachers and students who are able to interact with the guests and La Repubblica journalists. The high level of engagement received by Arena Robinson's twitter accounts (shares, retweets and likes) show how the cultural space offered by La Repubblica has become “the” event for a curious audience.

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For the last three years, the Robinson events have been a regular feature in the packed schedule of events at Lucca Comics (30 October – 3 November 2019), the second largest comics festival in the world. In 2019, interviews, debates and events with the biggest stars of the comics world animated the Repubblica space in the former church of Saint John. The Repubblica stage was shared by the great classics and newcomers alike, drawing over 400,000 people to Lucca from all over the world.

StraTorino - StraTorino is the emblematic fun run of the people of Turin, bringing people together for a Sunday of festivities, sun, friendship and fun. On 29 September 2019 the 43rd StraTorino event presented a series of new initiatives in pursuit of sport, solidarity and environmental sustainability. In particular: Pro- motion and Sport: StraTorino set itself the objective of promoting sport and physical activity among all age groups. Thanks to this precise goal, it has received the support of the Piedmont Region and the City of Turin. Inclusion and Prevention: people with disabilities were able to take part for free and had a dedicated start- ing time. A prevention programme was implemented to offer free breast screening. Environment: on the subject of the environment, during the event debates and awareness-raising campaigns about waste sort- ing were held, plastic bottles were replaced with biodegradable cups and a team of “cleaner runners” stepped in at the end of the race. Furthermore, forty-three trees were donated to the city as part of an urban planting project. Solidarity: once again, this year Stratorino supported social solidarity projects linked to two important regional foundations: Specchio dei Tempi and Piemontese per ricerca sul cancro, donating €1 for every registration to the fund to build the new Oncological Day Hospital at Sant’Anna Hospital in Turin.

Top500 - This is an event held in various Italian cities where PWC and local universities present their research regarding the economic stability of local businesses. The research is presented with collaboration from the local Repubblica newsrooms, which also compile albums on the topic. The events attract senior management officials from major companies, employees from all sectors of the economy and the public. Genoa, Bari, Florence. The tour continues.

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The National Geographic photographic

exhibitions have grown significantly. The programme of events involves agreements signed each year with exhibiting associations who wish to promote the topics

and values explored by the National Geo- graphic editorial initiatives: these include sustainable food production to the exces- sive use of plastic, space exploration to

celebrating the changing role of women in society in the last hundred years. The exhibitions are designed to offer visitors a series of multimedia and immersive expe-

riences. As well as photographs, these include videos, objects, infographics, sounds and augmented reality.

Limes, the Italian geopolitics magazine, has distinguished itself over the years with its credi-

bility and ability to explore internationally relevant topics. The editorial content is supported

by public events and private seminars, featuring Italian and international experts able to out- line the possible future scenarios of a continuously evolving geopolitical climate, culminating

in the annual Limes festival organised in collaboration with the Doge’s Palace in Genoa.

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DeejayTen- One of the main initiatives promoted by the radio broadcaster Radio Deejay is a race organised in various Italian cities. Launched in 2005 as an initiative “amongst friends”, over the years it has grown exponentially to become an increasingly popular and hotly-anticipated event by listeners and runners. The race represents the climax of a three-day event held in Deejay Village, brought to life by radio hosts and characterised by music and entertainment. The initiative has set a trend of beating its attendance records each year. With 2019 marking its fifteenth year, the Milan edition of Deejay Ten has become an annual tradition for both the city and the entire north of Italy and involved 35,000 runners. Florence, one of the key host venues of the event, recorded 11,000 participants in 2019. Bari greeted its fifth edition of the Radio Deejay race with great enthusiasm, with 10,000 runners taking part. In Rome in 2019, 10,000 runners took part in the race in the magnificent setting of Circo Massimo and passed the Colosseum and the Imperial Forum, two of the most evocative and historical sites in Rome away from the noise of the traffic.

In 2019 the third edition of the new Deejay Triathlon was held, with approximately 3,000 athletes taking part. Dynamo Camp is the campaign supported by Radio Deejay in 2019 for the eleventh consecutive year, consisting of a week-long radio marathon with guests and special events during the Deejay chiama Italia programme. The campaign explored the importance of the recreational therapy offered by the non- profit organisation to children and young people affected by serious or chronic medical conditions. Lis- teners could donate €2 by contacting a charity phone line by text message or landline to help provide an experience at the camp. The fund-raising activities were supported by a charity auction organised by the Dynamo Camp Non-Profit Organisation in collaboration with Radio Deejay.

With DEEJAY for Children, during the Christmas period Radio Deejay raises money for projects aimed at children through a charity auction that concludes with a day-long event that completely takes over the radio station. The Christmas campaign raised over €55,000 for Dynamo Camp, Vidas, CasaOz and Associ- azione Genitorinsieme Napoli.

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Exclusive gadgets and dinner with the radio presenters were among the prizes up for auction, and the event was met by an extremely generous response from listeners.

L’Espresso LIVE (Rome, 12-19 July 2019) – L’Espresso met with listeners and citizens in front of the Basilica of San Giorgio in Velabro in the heart of Rome, destroyed by the Mafia in 1993 during a dramatic night for institutions and later rebuilt, serving as a metaphor for the possible redevelopment of the country. In this period of time when walls are being built rather than torn down, it is a journalist's duty to report and bear witness; on the final evening, the anniversary of the murder of Paolo Borsellino, Lirio Abbate, Marco Tullio Giordana and Benedetta Tobagi narrated the Romanzo delle Stragi, the story of the massacres that took place between Piazza Fontana and Via D’Amelio.

Vinitaly (7-10 April 2019) - For the last two years Repubblica has been present at Vinitaly, the major wine event in Verona, with a large stand full of content about politics, culture, economics and education and a focus on B2B marketing. All of GEDI’s brands in the food and wine sector were represented: Rfood, sapori.it, le guide di Repubblica, le guide dell’Espresso. The programme is packed with events, including some oriented towards groups of students from various hospitality training schools. Bar tendering, social patterns, climate change, heroic viticulture, the eastern markets: these are just some of the topics that have been explored over the years at the Repubblica stand.

Le Guide di Repubblica - These guides list food and wine businesses in Italy’s regions, towns, districts and neighbourhoods. In 2019 the series included more than 40 guides, each one presented in its native region and involving thousands of people from institutions, theatres and important sites.

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3.4 - Responsibility and digital communication

In 2019 many new, experimental, innovative and social editorial initiatives were launched in the digital sphere with great success, dealing with topics relating to the environment, human right, local communities and region, diversity and inclusion, etc. As an example, some of the initiatives on Repubblica.it include:

• The webseries dedicated to sport such as La Partita della Vita - 28 episodes about the often forgotten games that changed the lives and careers of the great footballing greats, from Cristiano Ronaldo to Maradona, from Beckham to Baggio; and Sorelle D’Italia - 26 televised interviews of female athletes from Italy's national teams who have won medals and trophies over the years: Cagnotto, Kostner, Quadrella. The four-part webseries Palestre di Vita was a great success: the programme dealt with at-risk youngsters who live in places abandoned by institutions who are saved by sport thanks to community gyms, associations and non-profit organisations. • The launch of the audio series such as La Prima Cosa Bella by Romagnoli, and the production of podcast series such as I Demoni di Salvini which looks at the similarities between the methods of communication used by the Lega and those of the extreme right and neo-fascists, or Piccole Storie per Natale, ten short stories aimed at rediscovering classic works of English and American literature to be listened to beneath the Christmas tree. • The reports, inquiries and in-depth analyses of the most significant current affairs, with particular focus on ecology and the environment with “L’altra Amazzonia”, the three-part multimedia video report on oil exploitation in Ecuador, where around 50% of the country is covered by the Amazon rainforest. Oil extraction began in the 1970s. In four decades pollution has severely hit the indig- enous population. Much of their habitat has been destroyed and their lifestyle has been changed forever. Other social reports include “La Terra Giusta”, the video report into Mafia criminality and illegal recruitment in the Italian agricultural sector; the video exposés devoted to important anniversaries such as the episode to mark ten years since the Terremoto dell’Aquila, the video stories about the redevelopment of Genoa and its displaced persons in three episodes “ll Ponte Morandi Un Anno Dopo”, and the video story produced to mark the 75th anniversary of the Ital- ian Liberation “4 June 1944, Roma Città Libera: La Spia Americana che Guidò l’Avanzata degli Alleati”, which features author and director Maria Luisa Forenza and recounts the stories of Peter Tompkins and Harry Shindler.

In 2019 TV and audio reports were produced as part of coverage of the European Parliament elections in May 2019 and uploaded to a dedicated site under the title “#EU4YOU”, Che cosa fa l’Europa per ciascuno di noi?” (What does Europe do for you), created in collaboration with four newspapers from the LENA (Leading European Newspaper Alliance) and funded by the European Parliament. The videos, shot over four months, followed a journey in 27 stages to discover how the European Union affects our daily lives and its presence in our countries, cities and regions. In 2019 much space was given to humanitarian themes in collaboration with some of the world's leading humanitarian organisations, such as the projects with Save the Children and the video report “Inferno

40 Consolidated Non-Financial Statement 2019

Yemen: Il Dramma dei Bambini tra Fame e Bombe by Francesca Mannocchi, with Medici Senza Frontiere and the video report “Migranti, nell’Inferno di Lesbo” about the plight of around 38,000 people, including 12,000 children, who fled from conflicts in Afghanistan, Syria or Iraq and are now confined to the Greek islands, and the Lercio satirical publication Lercio in Africa con Amref about the prejudices, stereotypes and fake news about African people. Studio, live, long-form and interactive productions: in 2019 Visualdesk was produced using state-of-the- art digital techniques. In particular, in 2019 funding was secured from Google/YouTube to support the development and use of live video skills and technology in all of the Group's editorial departments. In the TV special “Terremoto Centro Italia”, for example, the footage of Amatrice and Accumo three years on from the earthquake were taken by drone. Over the years, long-form productions have been produced about the environment and the climate emergency, such as the interactive long-form “La Grande Onda per il Clima - FridaysForFuture” to tackle global warming before it is too late, or about the younger generations, with the multimedia report “Trap Gen- eration” about Trap artists. Thanks to developments in video technology, Visualdesk produced interactive specials for La Repubblica, La Stampa, Il Secolo XIX and the local newspapers, including the interactive 3D special “Viaggio sulla Luna” accompanied by the Repubblica dossier “Sbarco sulla Luna, storia di un’impresa”; the “Rivoluzione Plas- tica” dossiers about how to campaign for the correct use of plastic, the interactive map of femicide in Italy, and the other dossiers about Italy's regions for the GNN sites.

In terms of education and culture, Repubblica@Scuola is a free, digital educational project promoted by Repubblica and aimed at Italian students and high schools. Recognised by prestigious international organisations such as the World Young Reader Network, Repubblica@Scuola is the biggest platform for the publication of educational content for schools in Italy. Over the course of its eighteen-year history, the project has seen more than 10 million subscriptions and over 660,000 publications produced by students in the last 9 editions. In the 2018/2019 academic year, over 250,000 students, 1,200 teachers and 2,250 schools took part in the project. The platform was created with the aim of helping students to improve their writing skills by producing articles and participating in competitions offered by the project. Students can develop and improve their writing and interaction skills through work groups, taking part in the various projects and creating their very own online school newspaper. Furthermore, by actively participating in Repubblica@Scuola, students can earn school credits. Repubblica@Scuola is a partner of United Network for the organisation of Atlante - Italian Teacher Award, the first competition dedicated to the best extracurricular educational projects implemented by primary

41 Consolidated Non-Financial Statement 2019

and secondary school teachers. Atlante was created with the aim of enhancing the role of Italian teachers and celebrating their social and cultural value by recognising the many creative, useful and important projects carried out in schools which are not part of the standard curriculum. The platform has over 1,500 contributions and this year the Atlante award is the Italian partner of the Global Teacher Prize, known as the Nobel prize for teaching. Furthermore, the collaboration with United Network led to the creation of Global Citizens, a competition aimed at high school students. The students must develop a project on a topic of global interest and the winners have the chance to participate in the Global Citizens Model United Nations in New York. Repubblica@Scuola supports the “School-Work” project promoted by MIUR in an exceptionally innovative and completely digital way. High school students from across Italy, regardless of location and using technology to work remotely, are given the opportunity to explore how a newsroom and a publishing group works. Thank to video-conferences with our journalists, 30 hours of independent work by the students and the assessment of the projects by the speakers involved in the project, the students will receive a certification that enables them to gain school credits. Over 800 students participating in the school-work programme took part in the project in the 2018/2019 academic year. A digital literacy course has been developed for students in collaboration with Google. The platform features mini e-learning resources which, supported by videos designed by Google, form the basis for the development of projects about the digital world for high school students.

42 Consolidated Non-Financial Statement 2019

3.5 – Responsibility towards the community

Privacy and data protection

Privacy and personal data protection are of the utmost importance for the GEDI Group in order to guarantee and protect the precious relationship of trust between the publisher and its readers.

In fact, the GEDI Group, in processing the personal data of its users, employs rigorous policies which are constantly revised and updated in line with the applicable relevant national and European legislation, as applied and interpreted in the provisions of the Personal Data Protection Authority. These policy concern, in particular, the data collected and managed through the Group's digital properties and centre on the principles of necessity of processing, proportionality, transparency and freedom of choice of the inter- ested party.

Within this context, Group companies only process the data actually needed to provide the services and contents required by users and processing for commercial purposes is carried out on the basis of the free and informed consent acquired by users after having provided them with adequate information.

For all databases in which the personal data of users, partners and associates is collected and stored, the Group adopts all necessary technical, organisational and security measures to avert the risk of the de- struction or loss of data, unauthorised access and the unauthorised processing of data. Also in relation to the personal data of users acquired and processes using cookies, the Group companies observe the applicable regulations governing privacy, with particular reference to the provisions of the Personal Data Pro- tection Authority adopted in compliance with the provisions of Article 122 of the Privacy Code, pending the introduction of new European legislation. On this point, in order to guarantee users maximum transparency in the processing of their personal data when browsing, in November 2019 we began the process to progressively implement a Consent Management platform which provides a detailed list of potential third parties who may install cookies on the site and, more importantly, offers the possibility to provide or deny - in a simplified manner - consent to each of these parties.

More generally, throughout 2019 privacy and personal data protection has continued to be a central topic for the GEDI Group, which is committed to consolidating a culture of privacy within its internal activities and actions launched in previous years in implementation of the European General Data Protection Reg- ulation (EU Regulation 2016/679 - “GDPR”). The main measures implemented in this regard, which were coordinated by the Group Data Protection Department and directed by the Data Protection Officer, include: the constant updating of the data processing register, the Privacy Organisational Model and the list of third parties, altering the relative assignment of data processing duties where necessary; the revision of processing support system mapping, analysing the relative organisational, procedural and technical security measures; the implementation of remediation activities identified following a constant Privacy Risk Assessment process; the coordination of activities in order to support the exercise of rights by inter- ested parties; legal consultation with regard to progress and operations; training courses for employees at Group level.

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Responsible advertising and marketing

Through its agency (A.Manzoni & C.), the Group is committed to applying virtuous models of advertising communications. The Group has adopted the rules laid out in the Italian Code of Commercial Communi- cation Self-Regulation, and therefore does not accept any messages contrary to the dignity and the interest of people. As a result, those responsible for advertising sales conduct monitoring to prevent the publication of false advertising information regarding commercial products, messages that incite physical and moral violence, which promote racism or offend the moral, religious or civil convictions of citizens, or which contain elements that could mentally, morally or physically harm minors. The Group does not accept advertising that may provoke gambling or the abuse of alcohol, tobacco or any type of drug, and rejects any advertising containing pornography. In 2019, no penalties were imposed upon A. Manzoni & C. as a result of cases of unlawfulness or non-compliance of advertising messages in line with applicable law.

In addition to the Marketing Communication Self-Regulation Code, the Group complies with the decree regarding misleading and comparative advertising in professional relations (Italian Legislative Decree no. 145/07). This decree involves the adoption of a complete and comprehensive regulation that protects professionals from misleading advertising and its unfair consequences, as well as providing for conditions of legality in comparative advertising.

The Group operates on the basis of internal procedures and systems to safeguard and promote honest advertising communications which do not offend the sensibilities of users. The Group acknowledges MEF- MISE (Ministry of Economy and Finance - Ministry of Economic Development Decree) of 19 July 2016 on the media exempt from the prohibited advertising of games with winnings in cash. An operating procedure to manage lawfulness (legal aspects) and opportunities (compatibility with the editorial line of the media in question) is in force, which applies to any notice to be published by the media under concession, through which requests can be made to evaluate messages which are doubtful or otherwise in need of verification. In this context, where necessary, training on issues of lawfulness is provided to agents and employees.

For example, following the introduction of Law no. 145 of 30 December 2018 (so-called Budget Law 2018), entered into force on 1 January 2019, which introduced a new ban on advertising material in the health sector, and of Law no. 96 of 9 August 2018 relative to the “Conversion into law, with amendments, of Law Decree no. 87 of 12 July 2018 (so-called “Dignity Decree”), Chapter III of which was amended with new measures to combat gambling, including the ban on advertising for gambling and bets, an informative and summary note on the prudential approach that the company intends to follow and of the consequent behaviour to be adopted has been disclosed.

The company intranet of A. Manzoni & C. features a special section on “Advertising laws”. This section is broken down into topics and briefly describes the regulations in place which are applicable to users, agencies and advertising media, and therefore provides a guide for the entire A. Manzoni & C. organisation, to be read and consulted on a preventive basis for all advertising sale activities.

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This section aims to contribute to limiting litigation and company costs and, if used appropriately, also constitutes a valid instrument for customer-focused service activities, fostering long-term relationships. As regards online advertising and promotional campaigns, given the relative absence of specific regulations for this platform and in order to protect those who are most vulnerable and most influenced by advertising, the Group follows the more restrictive regulation applicable to television advertising.

Moreover, with reference to the Digital Division, the GEDI Group observes the provisions of the “White Paper on Digital Communication”, a document prepared by the eight associations that represent the entire supply chain of digital advertising - UPA (advertising investors), Assocom and Unicom (communications companies), FCP Assointernet (advertising concessionaire), Fedoweb (digital publishers), Fieg (print publishers), Iab (digital advertising market standards), and Netcomm (e-commerce companies), which requires its members to adhere to a standardised code of conduct to protect the association as a whole. The White Paper is based on corporate governance. The “White Paper on Digital Communication” iden- tifies six areas, namely viewability, the transparency of the supply chain, ad fraud, brand safety and brand policy, user experience and transparency of advertising investments.

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4 - HUMAN RESOURCES

4.1 - Focus on human resources

The Group recognises the centrality of human resources and the importance of establishing and maintaining relationships with them based on loyalty and mutual trust. Therefore, the management of work and collaboration relationships is based on respect for workers’ rights and on taking full advantage of their contribution with a view to promoting their development and professional growth. The Group is deeply committed to strengthening the sense of belonging and promoting the effectiveness of teamwork, knowledge sharing and professional advancement. The realisation of these goals guarantees that human resources pursue results that are consistent with the Group’s objectives, which have always prioritised excellence. Investing in human and intellectual capital is a fundamental lever for the Group in order to create and retain value over time. Investments in training and development courses and company welfare initiatives generate benefits that contribute to the creation of value. Respect for human rights is a founding principle of the Group's management system; it is expressly required by the Code of Ethics and is in line with the provisions of Italian employment law and the applicable collective labour agreement (CCNL). For GEDI, the respect for human rights is predominantly expressed through the provision of adequate working conditions for its employees, freedom of expression, non-discrimination and occupational health and safety; in this regard and in line with the previous year, in 2019 no breaches to human rights were identified. The Workforce The workforce of the GEDI Group as at 31 December 2019 comprised 2,221 people, reflecting the continuous reduction of the last three years, as represented below alongside the employee breakdown by professional category as at 31 December 2019. Group Employees (2017 - 2019)

2,445

2,359

2,221

2017 2018 2019

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Breakdown of Group employees by professional level (2019)

Execu- Journalist Clerical Manual- tives workers workers

With reference to the age distribution of the group workforce, 61% of employees are aged over 50, 39% are between 30 and 50 and around 1% are under 30. The graph below shows the employee breakdown by age and professional level.

Breakdown of Group employees by age and professional level (2019)

Dirigenti

Giornalisti

Impiegati

Operai

<30 30-50 >50

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In line with the HR policies practised over time by the GEDI Group aimed at establishing stable working relationships with its employees, there is a high percentage of permanent contracts, accounting for approximately 98% of all employees. The turnover rate for the year is around 4% for incoming employees and 10% for outgoing employees, of which 1.5% through voluntary redundancy.

The Group undertakes to avoid all forms of discrimination based on age, gender, sexuality, state of health, race, nationality, political opinion, religious beliefs, in all decisions that impact the relations with its stakeholders. GEDI pays close attention to respect for diversity and equal opportunities in its recruitment of new employees, rejecting all discriminatory practices and recognising the skills of each individual irrespec- tive of nationality, religion or gender. GEDI’s management and enhancement of human capital has always been focused on integration and respect for diversity. Relations amongst employees take place in accordance with provisions to protect people’s rights and freedoms and the core principles that affirm equal social dignity, with no discrimination based on nationality, language, age, gender, ethnic background, religious beliefs, political and union memberships or physical or mental condition.

The percentage of women on the total workforce is around 39%; the 833 women at the Group are mainly concentrated in the newsrooms, as well as in administrative and commercial roles; the current composition of the workforce is impacted by some of the specific work carried out within the Group, particularly in the printing industry, and a tradition in which there has historically been a predominantly male presence within the specific work category, as in the case of preparation and printing processes, which take place at night.

The remuneration policies are aimed at ensuring competitiveness on the labour market in line with the growth and loyalty retention objectives for human resources, as well as differentiating remuneration on the basis of individual expertise and skills. There are also slight differences between the average wages of men and women within the same employee category. The table below shows the ratio of basic salary and remuneration between men and women. For more details on the calculation method please refer to the footnote.

Ratio of basic salary and remuneration of women to men1 (2019) Professional category Ratio of average gross salary of Ratio of total remuneration women/men

Executives 0.78 0.75

Journalists 0.85 0.81

Clerical workers 0.88 0.82

Manual workers 0.94 0.80

1 The ratio of basic salary and remuneration of women to men is calculated on an interval between 0 and 1, where one refers to the total equalisation of women to men for the same professional category.

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Industrial relations

Industrial relations with trade union organisations have always been focused on proactive collaboration with respect for the various roles. Over the course of the year, in the context of a difficult economic scenario both for the country as a whole and the sector in particular, important agreements have been reached with trade unions, including agreements to establish company welfare policies. Furthermore, in line with previous years 100% of the Group’s employees were covered by collective bargaining agreements in 2019.

Enhancement and development of skills The GEDI Group has implemented training programmes aimed at supporting and enhancing the development and expertise of human resources. Training requirements are evaluated based on periodic discus- sions with employees, sector managers and the Human Resources Department.

In 2019, continuing the trend of previous years, the Group implemented transversal training courses focusing on the issues of anti-corruption in the context of the Organizational Model and on occupational health and safety. Furthermore, training activities aimed at implementing and developing administrative and management skills in response to changes to legislation were organised, with specific focus on privacy and administrative reporting, while training courses for foreign languages and IT skills were also continued. In this regard, specific courses for journalists operating in regional editorial offices were launched in order to develop skills and synergies with other Group companies. As in previous years, the usual professional training courses were offered to journalists.

The table below shows total hours of training subdivided by gender and professional level.

Hours of training provided to Group employees by professional role (2019)

Execu- Journalist Clerical Manual- tives workers workers

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4.2 - Health and safety in the workplace

GEDI has always been committed to protecting the integrity, health and well-being of its workers at all of its workplaces. The Group actively complies with legal requirements and obligations regarding health and safety in the workplace and ensures that they are applied in all of its companies. This takes place through the definition of organisational structures based on specific operating responsibilities, managerial responsibilities, the planning of prevention activities over time, the preparation of the relative expense budget, and the ongoing use of all technical support required to assess and reduce risks. Particular focus is given to the staff training process in relation to new roles, the duties and tasks assigned and the associated risk profiles.

In 2019, with the collaboration of various company departments and the relative managers, for each production department all relevant data regarding working practices and the methods of execution of ordi- nary and extraordinary activities was collected in order to promptly identify the risks, attributing them to the job in question and evaluating the risk profiles.

The analysis process continues with the identification of the prevention and protection measures which would enable the employee health and safety standards to be improved. The actions implemented following the risk assessment mainly regarded training activities, as indicated below. The hierarchical control system involves all internal subjects (Employer, Executives, Managers and Employees) and represents an effective tool for monitoring health and safety.

With regards to the safety of industrial plants, particular attention was given to verification and assessment activities during the design, restructuring and reconfiguration of machines and production cycles, with particular focus on the criteria regulating the introduction and management of substances and chem- icals. Working conditions and operating procedures are continuously monitored to regularly improve worker health and safety levels.

Moreover, the preparation and subsequent adoption of workplace health and safety operating instructions and procedures continues, playing an important role in terms of prevention, particularly at printing facilities. The process for drawing up these documents requires the constant involvement of operating personnel, specifically managers and workers, in order to promote the progressive increase in awareness among those employees and, at the same time, the constant adoption of good practices and conduct aimed at improving the general health and safety conditions at company workplaces.

The aforementioned activities undertaken to implement the operating procedures/instructions and to improve employee awareness represent the Group's firm commitment to lay the foundations for the construction and implementation of a Workplace Health and Safety Management System.

In line with the training plan, in 2019 the training activities and mandatory five-year refresher course on health and safety for office and newsroom workers (clerical staff and journalists), as well as printing facility workers (manual workers, maintenance staff and technicians) continued. Furthermore, specific training courses were launched for employees certified to carry out electrical works (emergency management)

50 Consolidated Non-Financial Statement 2019

and employee safety officers, etc. During the year, specific asbestos training sessions were provided. In 2019, a total of 8,000 hours of classroom-based training was delivered to 2,229 people.

In 2019 seven accidents were reported, none of which had serious consequences. In line with the reference standards, the number of commuting injuries involving personal vehicles or public transport was not considered, as such journeys were not organised by GEDI and did not involve the use of company vehicles. A comparison of the 2019 and 2018 figures shows a decrease of around 40%.

With reference to third parties operating at GEDI Group offices, the work carried out in the previous year was continued, furthering the analyses conducted in 2018 and focussing on suppliers who, in relation to the types of activities carried out and their presence at the site, represent a significant sample with regard to workplace health and safety risk profiles. Specifically, these analyses focused on the companies responsible for surveillance, cleaning, maintenance, logistics, IT support (software and hardware) catering, industrial maintenance - rotary presses, prepress and shipping facilities - and antenna management, operating at offices, newsrooms and printing facilities.

In line with the previous year and on the basis of the data collected, in 2019 no accidents were recorded among third-party companies operating at Group sites.

Also in line with previous years, there were no certified cases of work-related ill health. As per the guidelines, it is noted that in 2019 there was one report of a case of work-related ill health from a former employee. In this regard, as at 31 December 2019 the work-related illness had not been recognised and all requested documentation had been submitted to the relevant bodies and the relative assessments and investigations are in the process of being carried out.

Finally, total hours worked in 2019 amounted to 4.2 million, down by approximately 2.4% on the previous year (approximately 4.3 million according to the table shown in Annex 3), reflecting the effects of solidarity contracts and the reduction in total workforce. Data from the previous year has been recalculated.

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5 - ENVIRONMENTAL IMPACTS

The Group’s commitment to safeguarding the environment is realised through a range of initiatives designed to minimise the environmental impact of products and production activities, for example through the efficient use of natural resources, the optimisation of logistics flows and responsible waste management. The Group dedicates human and financial resources to actively comply with the extensive regulations in force for the protection of the environment and the resolution of environmental problems, primarily deriving from industrial processes.

This activity involves a broad range of assessment and procedural activities and instrumental measure- ments which are carried out every day to efficiently and comprehensively meet regulatory requirements in this area as well as the expectations of its stakeholders.

Paper management and consumption are fundamental issues for the Group and - despite the digital evolution at the root of the GEDI strategy - still play a very important role in terms of reducing its environmental impact. The Group also seeks to guarantee the responsible use of its various resources by reducing energy and water consumption and improving the management of atmospheric emissions.

For qualitative data regarding human resources, refer to the table in Annex 4 for more details.

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5.1 - Management of paper and other raw materials

Paper is a material of primary importance in the industrial activities of the GEDI Group and is also considered to be a sensitive element due to its associated environmental impact. When sourcing the different types of paper used to print its editorial products, the Group relies on leading international paper mills that are able to guarantee the strictest compliance with environmental protection regulations and whose production processes are certified by various bodies in order to obtain sustainability certifications and to verify the environmental management systems.

In particular, the paper industry supported by the GEDI Group adopts forest management certification systems, adopting control procedures - according to recognised standards - in order to obtain certifications from independent bodies which certify that the forest management procedures adopted are com- pliant with established sustainability criteria. To date, the most common and widely adopted forest management certifications systems for the paper industry are the Programme for the Endorsement of Forest Certification Schemes (PEFC) and the Forest Stewardship Council (FSC). The main certified environmental management systems adopted by GEDI's paper suppliers conform to specific reference standards such as ISO 14001 and the Eco-Management and/or Audit Scheme (EMAS) monitored by the European Union. These systems cover all of the organisation's activities, from procurement and product development to production and distribution.

In relation to the paper acquired for printing processes, in 2019 the GEDI Group required its suppliers to provide specific declarations, the so-called “Paper Profile”, containing information regarding the aforementioned certifications and management systems, specific environmental criteria, and indicating product composition. For some of the acquired supplies, it also required suppliers to issue specific declarations regarding the product certification of origin (indicated as “certified paper” in the table below).

Use of virgin, certified and recycled paper by the Group (t) (2017-2019)

47,875

16,380 43,573 42,585 22,166 19,269 9,424 18,250 9,135 2017 2018 2019

Vergin paper [t] Certified paper (FSC-PEFC) [t] Recycled paper [t]

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Based on the product composition characteristics, paper used by the Group for various printing uses can be divided into two main categories: virgin paper, produced from wood fibres (mechanical and/or chem- ical pulp) and recycled paper, produced from recycled fibres (so-called deinked pulp).

In 2019, the Group consumed approximately 70 thousand tonnes of paper, a 7% reduction on the 75 thousand tonnes consumed in 2018 and in line with the previous years and the current distribution trends.

In terms of production material used for printing purposes, plates and ink are particularly significant, whose consumption in 2019 decreased on the previous year (-5.5% for plates and -2.2% for ink).

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5.2 - GEDI's environmental impact

2 Consumption and emissions CO2

As regards energy consumption, the Group is committed to implementing initiatives focused on efficiency and limiting consumption with the ultimate goal of achieving higher eco-efficiency levels. GEDI's electricity consumption refers to various uses, predominantly linked to the use of radio relays and printing facilities, and lighting systems in the Group's administrative offices and newsrooms, its various Italian offices and warehouses. In 2019 GEDI consumed approximately 50,500 MWh of electricity, marking a decrease of around 4.8% compared to the 53,000 MWh consumed in the previous year, in line with the decreasing trend of the last three years.

Group electricity consumption (MWh)3 (2017-2019)

With reference to the thermal energy consumed following the acquisition of energy from district heating systems, in 2019 the Group consumed around 1,700 GJ of energy, down by 14% on the 2,000 GJ consumed in 2018. With regard to consumption in 2018, the data indicated in this report has been updated to include total consumption for each site where district heating systems are used4.

2Group electricity consumption includes high-frequency absorption. As regards natural gas, the conversion parameter applied was 9.7 (as notified by the Lazio Region in 2016) in order to include a precautionary margin of plant efficiencies.

3The conversion factors used to calculate energy consumption refer to electricity and thermal energy (1 kWh = 0.0036 GJ); in 2018, for natural gas and fuel oil the coefficients provided by the Ministry of the Environment were used.

4 The 2018 data has been integrated with the total consumption for all Manzoni and GNN Lombardia Emilia offices with district heating system.

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With regard to fossil fuels, natural gas consumption fell significantly from 1,033,944 cubic metres in 2018 to 908,057 cubic metres in 2019 (-12.2%). The Group’s use of natural gas mainly refers to central heating in the Group's offices and printing facilities.

Group natural gas consumption (m3) (2017-2019)

As regards fuel oil, consumption mainly relates to central heating; however since 2018 consumption relating to company vehicles has also been reported. As well as company vehicles allocated to managers, there are certain employees, such as Distribution Inspectors (GEDI Distribution), Antenna Inspectors and Radio Technicians (Elemedia), who, in the performance of their duties, travel around the country using company vehicles. Overall, fuel oil consumption for heating and company vehicles in 2019 totalled around 154,000 litres, down by approximately 24% on the 202,000 litres recorded in 2018.

To monitor its environmental impact and implement initiatives to mitigate it, in 2019 GEDI once again calculated the greenhouse gas emissions directly or indirectly associated with its core activities. Total

56 Consolidated Non-Financial Statement 2019

5 emissions of the GEDI Group in 2019 were 26 thousand tonnes of CO2 (total emissions calculated with the market-based method), with a reduction of around 6% on the previous year.

Greenhouse gas emissions6

t CO2 2017 2018 2019

Scope 1 1,957 2,572 2,151

Scope 2 (thermal energy) - 109 -

Scope 2 (location-based electricity) 20,276 19,115 18,198

Scope 2 (market-based electricity) 26,865 25,328 24,112

Total emissions (location-based approach) 22,232 21,796 20,349

Total emissions (market-based approach) 28,822 28,008 26,263

Environmental impact of radio activities

Elemedia S.p.A. broadcasts FM radio on behalf of the Group's three broadcasters (Radio Deejay, Radio Capital and m2o). Transmission takes place through roughly 900 frequencies broadcast by transmission sites where antennas on metal support frames are installed. These sites are located primarily in moun- tainous areas far from inhabited areas.

5To calculate the Group's greenhouse gas emissions, in 2019 the methods proposed by the GRI Sustainability Standards were applied. For this reason, scope 2 emissions for 2017, which were calculated according to GRI G4, have been recalculated according to the new guidelines. The GRI proposes two different approaches for the calculation of scope 2 emissions: Market-based and Location-based. The “Market-based” approach centres on the use of an emission factor defined contractually with the electricity supplier, and considers the certificates acquired by the company that certify that the electricity is generated by renewable energy sources (e.g. Guarantee of Origin). The “Location-based” approach uses an average emission factor associated with the specific combination of energy sources used to generate electricity in the country in question. This approach takes into account the energy conversion factor with reference to its generation in the country in which it was purchased. For the Location-based calculation, the TERNA 2016 - Confronti Internazionali emission factors were used, while for the Market- based approach, the residual mix factors published by the AIB were used. For the calculation of thermal energy emissions (scope 2), the emission factor used corresponds to the factor indicated by the national energy efficiency agency (ENEA)5. In compliance with the provisions of the Greenhouse Gas (GHG) Protocol, the leading emissions reporting standards, emissions were subdivided into various categories: in particular, Scope 1 emissions refer to those produced by natural gas, while Scope 2 emissions refer to electricity and thermal energy consumption. 6 The 2017 data for CO2 emissions from electricity was recalculated following the adoption of the new methodology proposed by the GRI Standards (adopted in the 2018 NFS) in order to ensure its comparability with the 2018 data. For the 2017 data calculated using the old methodology, refer to the 2017 Consolidated Non-Financial Statement.

57 Consolidated Non-Financial Statement 2019

The Group does not decide on the placement of broadcasting plants or technical parameters, which are established by the Ministry of Economic Development.

The Group’s radio antennas may be checked by the ARPA (Regional Environmental Protection Agencies), which monitor compliance with the legal limits placed on electromagnetic fields (the limits imposed by Italian law are amongst the strictest in Europe). In any event, the emissions generated by the Elemedia plants are a direct result of management methods based on strict compliance with the parameters established for the concession.

To keep pollution levels systematically below the limits, the Elemedia conducts self-audits and allocates adequate resources expressly for this reason. The Group relies on a network of inspectors responsible for managing the plant network, who carry out periodic control and maintenance activities. The Group also uses several probes located throughout the country and placed in some strategic points in cities, which are used to monitor signal levels (remote control network). Elemedia did not receive any penalties for exceeding radiation protection limits, while it is common practice for Elemedia to undertake reduction procedures to ensure compliance.

Lastly, along with other Italian radio broadcasters, Elemedia is a member of a consortium (DAB Italia) for the promotion and development of Digital Audio Broadcasting (DAB) frequencies, a digital radio broadcasting system which is still being planned in many Italian regions by the Ministry of Development. DAB has a number of advantages compared to analogue broadcasting: first and foremost, these include better signal quality due to the reduction in interference and disturbances deriving from the overlapping of programmes and the presence of obstacles in the signal broadcasting path; secondly, the system helps to offer a better service to users as it enables supplementary information to be combined with the audio signal; finally, the DAB system consumes much less energy than analogue systems, which also greatly reduces the environmental impact.

Water consumption

GEDI promotes the responsible and informed use of water. This resource is used primarily in employee bathrooms and, to a lesser extent, in the printing process at some plants. In 2019, water consumption came to approximately 47.2 megalitres, representing a decrease of -35.6% compared to the 73,3 megalitres recorded in 2018. The Group uses water exclusively from the public water supply. As regards waste water, all of the Group's sites use the public drainage system, in line with the qualitative characteristics imposed by the water network operator. The Printing Facility in Rome is authorised for surface water drainage. As regards water abstraction from areas affected by water stress, the Group uses the Aqueduct

58 Consolidated Non-Financial Statement 2019

Tool, developed by the World Resources Institute7, to identify potential at-risk areas. Water stress refers to the “extreme scarcity” and “scarcity” categories defined by the tool.

Water drawn by the Group from the public water system (megalitres - Ml) (2017- 2019)8

Waste management

In line with its focus on environmental protection and the responsible use of resources, GEDI also works to reduce waste from its core operations. The Group raises the awareness of its employees with regard to proper waste disposal and management and the minimisation of waste. In 2019, total production of hazardous and non-hazardous waste was approximately 11,300 tonnes, in line with the data from 2018. The percentages of hazardous and non-hazardous waste were 34% and 66% respectively, in line with the previous year. In 2019, approximately 5.3% of waste was recycled. As well as the customary evaluation and management activities to ensure compliance with applicable regulations, the group complied with all requirements connected with the introduction of the SISTRI waste management system.

7The WRI tool is available online at the website:https://www.wri.org/our-work/project/aqueduct. For the purposes of the analysis, the results of the “baseline water stress” column were considered.

8 The 2017 data for Group water abstraction was recalculated following the adoption of the new methodology proposed by the GRI Standards (adopted in the 2018 NFS) in order to ensure its comparability with the 2018 data. For the 2017 data calculated using the old methodology, refer to the 2017 Consolidated Non-Financial Statement.

59 Consolidated Non-Financial Statement 2019

Waste produced by the Group (t) (2017-2019)

Percentage of hazardous and non-hazardous waste produced by the Group (t)

TITOLO DEL GRAFICO

Pericolosi [t] Non pericolosi [t]

34% 66% 2019

32% 68% 2018

35% 65% 2017

Pericolosi [t] Hazardous [t] Non pericolosi [t] Non-hazardous [t]

Environmental impact of distribution and logistics

The Group is constantly focused on reducing the environmental impact of the transportation of its products and is committed to developing solutions to optimise it.

60 Consolidated Non-Financial Statement 2019

Newspapers

As at 31 December 2019 and following the activities regarding the Group's industrial structure, the printing of the newspapers published by GEDI S.p.A. and GEDI News Network S.p.A. is carried out at eight printing facilities located throughout Italy, five of which are owned by the Group (Turin, Mantua, Padua, Rome and Sassari) and three of which belong to third-party printers (Florence, Catania and Salerno).

Each night, vehicles depart from the various printing facilities to deliver printed copies to various local distributors, who then deliver the copies to Italian newsagents. The transport from the printing facility to the Local Distributor (third-party operator) is classified as “primary transport”, while transport from the Local Distributor to the newsagent is “secondary transport” and is managed wholly and independently by the Local Distributors, who contract third-party suppliers. In order to fully saturate the vehicles and thus reduce the environmental impact, action has been taken to reduce the number of dedicated and exclusive couriers, outsourcing the activity to operators who also transport publications produced by other publishers. Furthermore, transport pooling has been introduced at the printing facilities where the local newspapers are printed. Periodicals

Primary transport of periodicals and products sold optionally with titles published by GEDI S.p.A. (books, CDs, DVDs etc.) from printing facilities is managed by Gedi Distribution Spa, which has outsourced to a single nationally certified operator which also transports publications produced by other companies. This has enabled the maximum possible saturation of the vehicles used and a consequent reduction in atmospheric emissions. Returns and pulp

Unsold copies of publications (“returns”) are returned to newsagents by local distributors who count and account for the same. Returns are generally collected from the warehouses of local distributors on pallets by a single operator responsible for collecting the returns of GEDI S.p.A. and other companies. These copies are counted and certified and, if they are add-on products (Books, CDs, DVDs etc.), are “sorted”. Copies in perfect condition are made available for sale through the back issues service while the remainders are pulped.

In recent years the mechanism of the certified return of publications has been introduced. This consists of processing returns by local distributors through certification and, at the same time, pulping. As at 31 December 2019, 42 out of a total of 47 active local distributors were certified by the Certified Returns Body. This enabled the local distributors to pulp the publications directly on-site. In 2019, local pulp totalled approximately 19,900 tonnes.

61 Consolidated Non-Financial Statement 2019

METHODOLOGY

This document is the consolidated non-financial statement (the “NFS” or “Sustainability Report”) prepared to fulfil the obligations provided for by Articles 3 and 4 of Italian Legislative Decree no. 254/16 (“the Decree”) by GEDI Gruppo Editoriale S.p.A. (“GEDI” or the “Group”), and aims to transparently describe the initiatives and main results achieved in terms of sustainability performance in 2019 financial year. This NFS has been produced in compliance with the “Global Reporting Initiative Reporting Standards” according to the “in accordance - Core” option defined by 2016 by the Global Reporting Initiative (“GRI”). The “GRI Content Index” with details of the reported content is annexed to this document. For certain aspects of the information reported in this document, specific reference is made to other company documents (such as the Report on Corporate Governance and the Ownership Structure, the Annual Financial Report, the Code of Ethics, etc.). The process to collect the data required for the preparation of the Sustainability Report involved various Group company departments and was carried out according to the principles of balance, comparability, accuracy, timeliness, clarity and reliability expressed in the GRI Guidelines.

The data and information contained in the Sustainability Report refers to all companies of the GEDI Group as at 31 December 2019, consolidated on a line by line basis (any exceptions, in addition to the information provided below, are expressly indicated in the text). In order to ensure the comparability of the data and information over time and to assess the trend of the Group’s activities over a certain period, wherever possible accounting data for the 2017 and 2018 reporting periods has been provided. Any quantitative data subject to estimates is duly noted. Estimates are based on the most accurate information available or on sample surveys, as indicated in the comments alongside the data. In order to reconcile the information with the content indicated by the Decree, the relevance of the topic to the Group's activities has been indicated for each theme. Moreover, the risks associated with each topic referenced by the Decree and the management approaches adopted by the Group are duly identified.

The Board of Directors of GEDI Gruppo Editoriale S.p.A. approved the NFS . This document shall be subjected to a compliance review (“limited assurance engagement” in accordance whit ISAE 3000 Revised) by KPMG S.p.A. . The review will be carried out according to the procedures indicated in the “Independent Auditor’s Report”, which will be included in this document. The Consolidated Non-Financial Statement is produced on an annual basis. The previous Sustainability Report was published on 19 April 2019.

For comments, requests, opinions and areas of improvement in the work performed as regards GEDI’s corporate responsibility and on the information in the Sustainability Report, contact the following:

External Relations Head Office - Stefano Mignanego - [email protected]

62 Consolidated Non-Financial Statement 2019

ANNEXES

63 Consolidated Non-Financial Statement 2019

Annex 1 - Reconciliation table of topics relating to Italian Legislative De- cree no. 254/16 and the main GRI Standards

Topics relating to Italian Legislative Area Reference GRI Standards Disclosure Decree no. 254/2016 • Group Profile • The business model and economic performance • Internal control and risk management system • Stakeholders and stakeholder en- 102-2; 102-4; 102-5;102-6; 102-7; gagement 102- 9; 102-10; 102-11; 102-12; Corporate management model and Environment, Social, Personnel, • Materiality analysis 102-13; 102-18; 102-25; 102-40; organisation of business activities Human Rights, Anti-corruption • Content quality, independence and 102-43; 102-44; MA 205; MA 300;

responsibility 301-1; 302-1; 306-2; MA 400; MA • Focus on human resources 401 • Management of paper and other raw materials • GEDI's environmental impacts • Methodology

• Management of paper and other MA 301; 301-1; MA 302; 302-1; raw materials Environment MA 303; 303-1; 303-2; 303-3; MA • GEDI's environmental impacts 305; 305-1; 305-2; MA 306; 306-2

• GEDI Group Profile • The business model and economic performance • Internal control and risk management system • Stakeholders and stakeholder engagement 102-2; 102-4; 102-9; 102-40; 102- • Content quality, independence and 42; 102-43; 102-44; MA 205; MA Social responsibility 412; 412-1; MA 413; 413-1; MA Policies practised by the business, in- • Social role and participation in the 418; 418-1; MA 419; 419-1; cluding those relating to due dili- community gence, the results achieved by the • same and the relative basic indicators Responsibility and digital commu- of non-financial performance nication • Responsibility towards the community

102-8; 102-41; MA 401; 401-1; 401-2; MA 402; 402-1; MA 403; • Content quality, independence and 403-1; 403-2; 403-3; 403-4; 403-5; Personnel responsibility 403-6; 403-7; 403-9; 403-10; MA • Focus on human resources 404; 404-1; 404-2; MA 405; 405-1; 405-2 • The Organizational Model and anti- corruption 102-16; MA 205; 205-1; 205-2; Anti-corruption • Internal control and risk manage- 205-3 ment system

Main risks generated or sustained, including the management methods of the same, relating to the aforementioned topics and deriving from the Environment, Social, Personnel, • Internal control and risk manage- 102-15 business activities, products, services Human Rights, Anti-corruption ment system or business relations, including, where relevant, supply chains and subcon- tractors • The Corporate Governance System Diversity of the administrative man- • Focus on human resources agement and control bodies

• Stakeholders and stakeholder engagement • Materiality analysis Reporting standards and materiality Environment, Social, Personnel, 102-45; 102-46; 102-47; 102-54; • Methodology analysis Human Rights, Anti-corruption 102-55; 102-56 • GRI Content Index • Independent Auditor’s Report

Key: MA = Disclosure 103-1, 103-2, 103-3

64 Consolidated Non-Financial Statement 2019

Annex 2 - Scope of Material Aspects of the GEDI Group

Scope of mate- Type of impact Material topics rial topics Economic and corporate responsibility Caused by the Economic performance and independence from public funding GEDI Group Caused by the Collaborations GEDI Group Caused by the GEDI Group and directly User satisfaction Public related to its activity Caused by the Business model in the media sector GEDI Group Caused by the Relations with the financial community GEDI Group Governance and compliance Caused by the Governance and business integrity GEDI Group Caused by the Risk management system GEDI Group Caused by the GEDI Group and directly Responsible supply chain Suppliers related to its activity Product responsibility Caused by the Freedom of expression, independence and editorial responsibility GEDI Group Caused by the Content quality GEDI Group Caused by the Advertising and responsible marketing GEDI Group Caused by the GEDI Group and directly Information, social role and responsibility to the community Local community related to its activity Caused by the GEDI Group and directly Privacy and data protection Public related to its activity Caused by the GEDI Group and directly Protection of intellectual property Collaborators related to its activity Caused by the Oversight and digital strategy GEDI Group Responsibility to employees Caused by the Relations with trade unions GEDI Group Caused by the Valorisation, skills development and talent attraction GEDI Group Caused by the Protection of human rights and working practices and conditions GEDI Group

65 Consolidated Non-Financial Statement 2019

Caused by the Diversity and equal opportunities GEDI Group Caused by the Worker health and safety GEDI Group Caused by the Welfare and employee benefits GEDI Group Environmental responsibility Caused by the GEDI Group and directly Process efficiency and paper management Suppliers related to its activity Caused by the Emissions and the environment GEDI Group

66 Consolidated Non-Financial Statement 2019

Annex 3 – Focus on Human Resources – Reporting Table

a) Human Resources9

Group population by professional category and gender 2017 2018 2019

Men Women Total Men Women Total Men Women Total % Executives 2% 0% 3% 2% 1% 3% 2% 1% 3% Journalists 32% 16% 48% 32% 16% 48% 32% 16% 48% Clerical workers 22% 19% 42% 23% 19% 42% 23% 20% 43% Manual workers 7% 1% 8% 6% 1% 7% 5% 1% 6% Total 63% 37% 100% 63% 37% 100% 62% 38% 100%

Group population by contract type (fixed-term vs. permanent) and gender 2017 2018 2019

Men Women Total Men Women Total Men Women Total no. of employees Fixed-term 40 35 75 23 22 45 13 12 25 Permanent 1,509 861 2,370 1,458 856 2,314 1,375 821 2,196 Total 1,549 896 2,445 1,481 878 2,359 1,388 833 2,221

Permanent group staff by employee type (full time vs. part time) and gender 2017 2018 2019

no. of employ- Men Women Total Men Women Total Men Women Total ees Full time 1,542 828 2,370 1,475 813 2,288 1,381 768 2,149 Part time 7 68 75 6 65 71 7 65 72 Total 1,549 896 2,445 1,481 878 2,359 1,388 833 2,221

Group population by employee category and age 2017 % <30 30-50 >50 Total Executives 0% 1% 2% 3% Journalists 1% 20% 27% 48% Clerical workers 1% 16% 25% 42% Manual workers 0% 4% 3% 8% Total 1% 41% 58% 100%

9 The data relative to total employees of the Group as at 31/12/2017 includes the 435 employees acquired with the merger of ITEDI. The 2017 data relating to the group workforce subdivided by age, gender and professional level was recalculated following the adoption of the new methodology proposed by the GRI Standards (adopted in the 2018 NFS) in order to ensure its comparability with the 2018 data. For the 2017 data calculated using the old methodology, refer to the 2017 Consolidated Non- Financial Statement.

67 Consolidated Non-Financial Statement 2019

Group population by employee category and age 2018 % <30 30-50 >50 Total Executives 0% 1% 2% 3% Journalists 1% 19% 29% 48% Clerical workers 1% 20% 22% 42% Manual workers 0% 3% 4% 7% Total 1% 43% 56% 100%

Group population by employee category and age 2019 % <30 30-50 >50 Total Executives 0% 1% 2% 3% Journalists 1% 18% 30% 48% Clerical workers 1% 18% 24% 43% Manual workers 0% 2% 4% 6% Total 1% 39% 60% 100%

Incoming and outgoing turnover broken down by age and gender (2017)10 Incoming Outgoing

<30 30-50 >50 Total Turnover <30 30-50 >50 Total Turnover no. of employees Men 11 106 42 159 10.3% 5 95 67 167 10.8% Women 16 86 26 128 14.3% 12 46 23 81 9.0% Total 27 192 68 287 11.7% 17 141 90 248 10.1%

Incoming and outgoing turnover broken down by age and gender (2018) Incoming Outgoing

<30 30-50 >50 Total Turnover <30 30-50 >50 Total Turnover no. of employees Men 2 21 4 27 1.7% 5 54 35 94 6.1% Women 4 21 4 29 3.2% 6 25 17 48 5.4% Total 6 42 8 56 2.3% 11 79 52 142 5.8%

Incoming and outgoing turnover broken down by age and gender (2019) Incoming Outgoing

<30 30-50 >50 Total Turnover <30 30-50 >50 Total Turnover no. of employees Men 9 31 11 51 3.4% 10 58 76 144 9.7% Women 13 24 5 42 4.8% 6 48 33 87 9.9% Total 22 55 16 93 3.9% 16 106 109 231 9.8%

10The data relative to turnover in 2017 also contains the turnover of employees of the former ITEDI Group from 01/01/2017. ITEDI became part of the Group in July 2017.

68 Consolidated Non-Financial Statement 2019

Protected categories 2017 2018 2019 Print Men Women Total Men Women Total Men Women Total no. of employees Executives ------Journalists ------Clerical workers 40 33 73 44 29 73 39 28 67 Manual workers 8 2 10 7 2 9 6 2 8 Total 48 35 83 51 31 82 45 30 75

b) Training11

Average hours of training per person by professional role and gender 2017 2018 2019

Men Women Total Men Women Total Men Women Total no. hours Executives 13.8 26.7 16 14.1 15.9 14.5 3.3 2.8 3.2 Journalists 1.6 1.8 2 0.9 1.1 1.0 2.7 2.6 2.6 Clerical workers 9.5 10.2 10 6.3 6.1 6.2 5.8 5.7 5.8 Manual workers 0.8 1.6 1 1.6 - 1.3 6.3 0.4 5.0 Total 4.7 6.5 5 3.4 3.9 3.6 4.1 4.1 4.1

c) Health and safety12

Injuries13 2017 2018 2019 No. of cases Men Women Total Men Women Total Men Women Total

Occupational injuries 10 - 10 11 2 13 5 2 7 of which fatal ------of which with serious consequences (excluding fatalities) - - - - 1 1 - - -

Time 2017 2018 2019 no. hours Men Women Total Men Women Total Men Women Total Hours worked 2,350,747 1,322,043 3,672,790 2,827,821 1,513,803 4,341,623 2,679,207 1,559,471 4,238,678

11In 2019 the percentage of employees who have received anti-corruption classroom-based training, divided by employee category, are as follows: Managers 50%, Clerical Workers 11%.

12 The 2017 data for injuries and injury ratios was recalculated following the adoption of the new methodology proposed by the GRI Standards (adopted in the 2018 NFS) in order to ensure its comparability with the 2018 data. For the 2017 data calculated using the old methodology, refer to the 2017 Consolidated Non-Financial Statement. Data for hours worked in 2018 have been recalculated.

13 The data regarding occupational injuries in 2018 does not include injuries to collaborators.

69 Consolidated Non-Financial Statement 2019

Health and safety indicators 2017 2018 2019 No. of cases Men Women Total Men Women Total Men Women Total

Injury frequency index 0.9 - 0.5 1.0 0.3 0.7 0.4 0.3 0.3 Fatality index ------Frequency index of injuries with serious consequences ------No cases of work-related illness have been recorded in the last three years; see the Workplace health and safety chapter of the NFS for more details. Annex 4 - Environmental impacts - Reporting Table

Paper used [tonnes] 2017 2018 2019

Total % Total % Total %

Virgin paper [t] 19,269 23.1% 9,424 12.5% 9,135 13.1% Certified paper (FSC-PEFC) [t] 16,380 19.6% 22,166 29.5% 18,250 26.1% Recycled paper [t] 47,875 57.3% 43,573 58% 42,585 60.9% Total [t] 83,524 100% 75,163 100% 69,970 100%

Other materials 2017 2018 2019

Total % Total % Total %

Offset plates [m2] 194,500 34.1% 219,603 40.2% 215,600 41.8% Flexo plates [m2] 376,291 65.9% 326,077 59.8% 300,041 58.2% Total plates [m] 570,791 100% 545,680 100% 515,641 100% Ink for Offset plates [kg] 354,519 22.3% 309,752 23.6% 384,730 29.9% Ink for Flexo plates [kg] 1,237,257 77.7% 1,003,800 76.4% 900,100 70.1% Total ink [kg] 1,591,776 100% 1,313,552 100% 1,284,830 100%

Energy Consumption14 2017 2018 2019

Total Total GJ Total Total GJ Total Total GJ

Electricity [kWh] 56,321,695 202,758 53,098,077 191,153 50,549,813 181,979 Thermal energy [kWh] - - 581,701 2,094 498,800 1,796 Natural Gas [m3] 1,037,926 40,489 1,033,943 36,450 908,057 32,057 Fuel oil [l]15 122,000 4,374 201,779 7,246 153,893 4,855

14 The conversion factors used to calculate energy consumption are: for electricity and thermal energy: 1 kWh = 0.0036 GJ; for natural gas 1 m3 = 0.03901 GJ (in 2017), 1 m3=0.03525 GJ (in 2018) and 1 m3=0.035303 (in 2019); for fuel oil 1t = 42.88 GJ (in 2017), 1t = 42.87 GJ (in 2018 and 2019). The 2018 data for thermal energy has been recalculated following the integration of consumption from all GEDI Group offices. 15From 2017 fuel oil consumption by company vehicles has been accounted for.

70 Consolidated Non-Financial Statement 2019

Total water abstraction16 Change 18- Ml 2017 2018 2019 19 Soft wa- Other Source of abstraction Soft water Other types Soft water Other types ter types Surface water ------Groundwater ------Seawater ------Generated water ------Third-party water 102.8 - 73.3 - 47.2 - -35.6% Total 102.8 - 73.3 - 47.2 - -35.6%

Water abstraction in water stress areas17 Change 18- MI 2017 2018 2019 19 Soft wa- Other Source of abstraction Soft water Other types Soft water Other types ter types Surface water ------Groundwater ------Seawater ------Generated water ------Third-party water 2.02 - 2.08 - 2.68 - 29% Total 2.02 - 2.08 - 2.68 - -

Waste 2017 2018 2019

Total % Total % Total %

Hazardous [t] 3,617 35.4% 3,613 32.4% 3,855 34.2% Non-hazardous [t] 6,606 64.6% 7,550 67.6% 7,403 65.8% Total [t] 10,222 100% 11,163 100% 11,258 100%

Waste for disposal 2017 2018 2019

Total % Total Total % Total Total % Total

Recycling [t] 1,242 12.2% 891 8.0% 592 5.3% Landfill [t] - 0% 23 0.2% - 0% Other [t] 8,981 87.9% 10,249 91.8% 10,666 94.7% Total 10,222 100% 11,163 100% 11,258 100%

16 The 2017 data for water abstraction was recalculated following the adoption of the new methodology proposed by the GRI Standards (adopted in the 2018 NFS) in order to ensure its comparability with the 2018 data. For the data for 2017 calculated using the old methodology, refer to the 2017 Consolidated Non-Financial Statement. Soft water is defined as water with ≤1.000 mg/l of dissolved solid material. Other types of water are defined as water with >1.000 mg/l of dissolved solid material.

17Water stress areas are defined using the Aqueduct tool developed by the World Resources, considering the “extreme scarcity” and “scarcity” categories. With reference to the sites considered for the analysis, the Group's printing facilities (Milan, Rome and Turin) were evaluated due to their impact on consumption against total Group consumption. Abstraction from water stress areas is detailed in the total water abstraction table.

71 Consolidated Non-Financial Statement 2019

GRI Content Index The 2019 Sustainability Report of the GEDI Group has been drafted on the basis of the guidelines of the GRI Global Reporting Initiative Standards in compliance with the “In accordance - Core” option and the “Sector Disclosures - Media” guidelines. The table below specifies the Group’s information based on the GRI Standard guidelines with reference to the GEDI materiality analysis.

Indicator Page references/notes GENERAL STANDARD DISCLOSURE Organisational profile 5; “Articles of Association of the 102-1 Name of the organisation GEDI Group” 102-2 Activities, brands, products, and services 7-15

102-3 Location of headquarters 19

102-4 Location of operations 7-15 19; “Report on corporate govern- 102-5 Ownership and legal form ance and the ownership structure” 102-6 Markets served 7-15

102-7 Scale of the organisation 7-19; 47

102-8 Information on employees and other workers 47-52; 68-71

102-9 Supply chain 23; 52; 54

102-10 Significant changes to the organisation and its supply chain 5; 7-9

102-11 Precautionary Principle or approach 20-24; “Annual Financial Report”

102-12 External initiatives 24; 34; 44

102-13 Membership of associations 24

Strategy and analysis

102-14 Statement from senior decision-maker 5

Ethics and Integrity 23-24; “Articles of Association of 102-16 Values, principles, standards, and norms of behaviour the GEDI Group” 102-17 Mechanisms for advice and concerns about ethics 22-23

Governance 19 -20; “Report on corporate gov- 102-18 Governance structure ernance and the ownership structure” Stakeholder engagement 102-40 List of stakeholder groups 25

102-41 Collective bargaining agreements 50

102-42 Identifying and selecting stakeholders 25-28

102-43 Approach to stakeholder engagement 25-28

72 Consolidated Non-Financial Statement 2019

Indicator Page references/notes 102-44 Key topics and concerns raised 27-28

Material aspects and boundaries

102-45 Entities included in the consolidated financial statements 7; 63

102-46 Defining report content and topic Boundaries 27; 63

102-47 List of material topics 27-28

102-48 Restatements of information 63

102-49 Changes in reporting 63 Report Profile 102-50 Reporting period 63

102-51 Date of most recent report 63

102-52 Reporting cycle 63

102-53 Contact point for questions regarding the report 63

102-54 Claims of reporting in accordance with the GRI Standards 63

102-55 GRI content index 73-78

102-56 External assurance 79

Indicator Page references/notes Omission SPECIFIC STANDARD DISCLOSURE ECONOMIC INDICATORS MATERIAL ASPECT: Economic performance (2016) Explanation of the material topic and its Bound- 103-1 17-18; 66-67 ary 103-2 The management approach and its components 17-18; “Annual Financial Report”

103-3 Evaluation of the management approach 17-18 Direct economic value generated and distrib- 201-1 17-18 uted 201-4 Financial assistance received from government 17-18

MATERIAL ASPECT: Anti-corruption (2016)

103-1 Material topic and boundary 19-24; 66-67 19-24: “Organisational, Management 103-2 The management approach and its components and Control Model”; “Code of Ethics” 103-3 Evaluation of the management approach 19-24 Communication and training about anti-corrup- 205-2 50; 70 tion policies and procedures Confirmed incidents of corruption and actions In 2019 no cases of corruption were 205-3 taken reported or identified. ENVIRONMENTAL INDICATORS MATERIAL ASPECT: Materials (2016) 103-1 Material topic and boundary 53-53; 71

73 Consolidated Non-Financial Statement 2019

Indicator Page references/notes Omission 103-2 The management approach and its components 53-54

103-3 Evaluation of the management approach 53-54

301-1 Materials used by weight or volume 53-54; 71 MATERIAL ASPECT: Energy (2016) 103-1 Material topic and boundary 56-57; 71

103-2 The management approach and its components 56-57

103-3 Evaluation of the management approach 56-57

302-1 Recycled input materials used 56-57; 71 MATERIAL ASPECT: Water and effluents (2018) 103-1 Material topic and boundary 59-60; 71

103-2 The management approach and its components 59-60

103-3 Evaluation of the management approach 59-60

303-1 Interactions with water as a shared resource 59-60 Management of water discharge related im- 303-2 59-60; 71 pacts 303-3 Water withdrawal 59-60; 71 MATERIAL ASPECT: Emissions (2016) 103-1 Material topic and boundary 57-58; 71

103-2 The management approach and its components 57-58

103-3 Evaluation of the management approach 57-58

305-1 Direct (Scope 1) GHG emissions 57-58

305-2 Energy indirect (Scope 2) GHG emissions 57-58 MATERIAL ASPECT: Effluents and waste (2016) 103-1 Material topic and boundary 60-62; 71

103-2 The management approach and its components 60-62

103-3 Evaluation of the management approach 60-62

306-2 Waste by type and disposal method 60-62; 71 SOCIAL INDICATORS MATERIAL ASPECT: Employment (2016) 103-1 Material topic and boundary 47; 65

103-2 The management approach and its components 47

103-3 Evaluation of the management approach 47

401-1 New employee hires and employee turnover 47 MATERIAL ASPECT: Work and industrial relations (2016) 103-1 Material topic and boundary 50; 65

74 Consolidated Non-Financial Statement 2019

Indicator Page references/notes Omission 103-2 The management approach and its components 50

103-3 Evaluation of the management approach 50 Minimum notice periods for operational 402-1 50 changes MATERIAL ASPECT: Occupational health and safety (2018) 103-1 Material topic and boundary 51-52; 65

103-2 The management approach and its components 51-52

103-3 Evaluation of the management approach 51-52 Occupational health and safety management 403-1 51-52 system 403-2 Hazard identification, risk assessment, and inci- 51-52

dent investigation 403-3 Occupational health services 51-52 403-4 Worker participation, consultation, and com- 51-52

munication on occupational health and safety 403-5 Worker training on occupational health and 51-52

safety 403-6 Promotion of worker health 51-52 403-7 Prevention and mitigation of occupational 51-52 health and safety impacts directly linked by business relationships 403-9 Occupational injuries 51-52; 70-71

403-10 Work-related ill health 51-52; 70-71

MATERIAL ASPECT: Training and education (2016) 103-1 Material topic and boundary 50; 65

103-2 The management approach and its components 50 .

103-3 Evaluation of the management approach 50 Average hours of training per year per em- 404-1 50; 70 ployee MATERIAL ASPECT: Diversity and equal opportunities (2016) 103-1 Material topic and boundary 47-49; 65

103-2 The management approach and its components 47-49

103-3 Evaluation of the management approach 47-49

405-1 Diversity of governance bodies and employees 20; 47-49; 68-70 Ratio of basic salary and remuneration of 405-2 47-49 women to men

75 Consolidated Non-Financial Statement 2019

Indicator Page references/notes Omission MATERIAL ASPECT: Human Rights Assessment (2016)

103-1 Material topic and boundary 47; 65

103-2 The management approach and its components 47

103-3 Evaluation of the management approach 47 Operations that have been subject to human 412-1 47; “Code of Ethics” rights reviews or impact assessments MATERIAL ASPECT: Local communities (2016) 103-1 Material topic and boundary 35-40; 65

103-2 The management approach and its components 35-40

103-3 Evaluation of the management approach 35-40 Operations with local community engagement, 413-1 impact assessments, and development pro- 35-40 grams MATERIAL ASPECT: Compliance (2016) 103-1 Material topic and boundary 19-24; 65

103-2 The management approach and its components 19-24

103-3 Evaluation of the management approach 19-24 Non-compliance with laws and regulations in 19-24 419-1 the social and economic area MATERIAL ASPECT: Labelling of products and services (2016) 103-1 Material topic and boundary 45-46; 65

103-2 The management approach and its components 45-46

103-3 Evaluation of the management approach 45-46 Incidents of non-compliance concerning mar- 45-46 417-3 keting communications MATERIAL ASPECT: Customer privacy (2016) 103-1 Material topic and boundary 44-45; 65

103-2 The management approach and its components 44-45

103-3 Evaluation of the management approach 44-45 Substantiated complaints regarding concerning 44-45 418-1 breaches of customer privacy and losses of customer data Other material aspects

MATERIAL ASPECT: Relations with the financial community

103-1 Material topic and boundary 24; 65

103-2 The management approach and its components 24

103-3 Evaluation of the management approach 24

76 Consolidated Non-Financial Statement 2019

Indicator Page references/notes Omission

MATERIAL ASPECT: Business model in the media sector

103-1 Material topic and boundary 16;34; 65

103-2 The management approach and its components 16; 34

103-3 Evaluation of the management approach 16; 34

MATERIAL ASPECT: Risk management system

103-1 Material topic and boundary 20-23; 65

103-2 The management approach and its components 20-23

103-3 Evaluation of the management approach 20-23

MATERIAL ASPECT: Oversight and digital strategy

103-1 Material topic and boundary 16-17; 65

103-2 The management approach and its components 16-17

103-3 Evaluation of the management approach 16-17

MATERIAL ASPECT: Protection of intellectual property

103-1 Material topic and boundary 29-34; 65

103-2 The management approach and its components 29-34

103-3 Evaluation of the management approach 29-34

77 Consolidated Non-Financial Statement 2019

INDEPENDENT AUDITOR’S REPORT

78 Consolidated Non-Financial Statement 2019

79 Consolidated Non-Financial Statement 2019

80 Consolidated Non-Financial Statement 2019