Half-Year Report at June 30, 2015 Was Approved by the Board of Directors That Authorised Its Publication

Half-year Report

at June 30, 2015

This is English translation of the Italian Half-year report, which is the sole authoritative version.

RCS MediaGroup S.p.A. Via A. Rizzoli, 8 – 20132 Milan Share Capital €475,134,602.10 - Company Register and Tax Code/VAT No. 12086540155, REA No. 1524326

Contents

Corporate Officers ...... 3 Group structure of RCS MediaGroup ...... 5 Brief description of the Group ...... 6 Consolidated financial highlights of RCS MediaGroup ...... 8 Report on operations ...... 9 Group performance in the second quarter ...... 10 Group performance in the first half of the year ...... 14 Other Information ...... 22 Operating segment performance ...... 23 Media Italy ...... 24 Media Spain ...... 30 Books ...... 33 Advertising and Events ...... 37 Corporate Functions and Other Activities ...... 40 Related party transactions ...... 43 Significant events during the first half of the year ...... 43 Events after the reporting period ...... 46 Outlook 2015 ...... 47 Additional information required by CONSOB pursuant to Art. 114, paragraph 5 of Italian Legislative Decree no. 58/1998 of May 27, 2013 ...... 48 Condensed interim consolidated financial statements ...... 54 Consolidated financial statements ...... 55 Condensed income statement ...... 56 Condensed statement of comprehensive income ...... 57 Condensed statement of financial position ...... 58 Condensed statement of cash flows ...... 59 Condensed statement of changes in equity ...... 60 Notes to the condensed interim consolidated financial statements ...... 63 Format, content and other information on the condensed interim consolidated financial statement items ...... 64 Annexes ...... 105 List of group equity investments at June 30, 2015 ...... 106 Exchange rates against the euro ...... 111 Related parties ...... 113

CORPORATE OFFICERS

Honorary Chairman

Cesare Romiti

Board of Directors (^)

Maurizio Costa Chairman Pietro Scott Iovane (°) Chief Executive Officer Gerardo Braggiotti Director Laura Cioli Director Paolo Colonna Director Teresa Cremisi Director Dario Frigerio Director

Tom Mockridge Director

Stefano Simontacchi Director

(^) The Board of Directors in office at the date of approval of this Report. The Directors are in office for the years 2015-2016-2017 and therefore until the Shareholders’ Meeting called to approve the 2017 financial statements. (°) Also holds the office of Chief Operating Officer.

Powers delegated by the Board of Directors (^)

Without prejudice to internal observance of the functions and rules of corporate governance adopted, the Board of Directors has delegated in particular all the powers to the Chief Executive Officer and Chief Operating Officer for the conduct of the Company's ordinary administration, as well as a set of powers for the company’s management, with limits on the size of financial commitments and/or risks that may be assumed for certain types of transactions.

Board of Statutory Auditors (^)

Lorenzo Caprio Chairman Gabriella Chersicla Standing auditor Enrico Colombo Standing auditor Barbara Negri Alternate auditor Renata Maria Ricotti Alternate auditor Ugo Rock Alternate auditor

(^) The Board of Statutory Auditors in office as at the date of approval of this Report. The Statutory Auditors are in office for the years 2015-2016-2017 and therefore until the Shareholders’ Meeting called to approve the financial statements relating to the last of these years.

Independent auditors (^)

KPMG S.p.A.

(^) In office until the Shareholders’ Meeting called to approve the 2017 financial statements.

GROUP STRUCTURE OF RCS MEDIAGROUP

Media Italy

Media Sp ain

Books

Advertising and Events

Corporate Functions and Other Activ ities

BRIEF DESCRIPTION OF THE GROUP

RCS MediaGroup is one of the leading multi-media publishing groups at international level. The Group is active in various publishing sectors, from newspapers to magazines, books to TV, radio to new media, as well as being among the primary operators on the advertising sales and distribution market. In a global context characterised by a deep change in communication mediums, media is increasingly important for the development of civil society and its individuals. RCS MediaGroup is a leading player in the evolution process of the publishing sector, fortified by the founding values and principles which inspire it and the acknowledged influence which characterises its contents, brands and authors.

In particular, the RCS Group is leader in newspaper publishing in Italy and Spain. In Italy, the RCS Group publishes Corriere della Sera and La Gazzetta dello Sport, leaders among national and sport dailies, in addition to numerous weekly and monthly magazines, including Amica, Living, Style Magazine, Dove, Oggi, Io Donna, Sportweek, Sette and Abitare. In Spain, the Group is one of the main players in the media sector with the Unidad Editorial Group, which publishes Spain's number two daily newspaper El Mundo, Marca, leader in sports news, and Expansión, leader in business news, in addition to numerous magazines, including Telva, Marca Motor, Actualidad Económica, Golf Digest, Historia, Siete Leguas. The Group is also active in multimedia communication dedicated to early childhood with the Sfera Group, which operates in Italy, China, Spain, Mexico and France, where it is active with numerous initiatives, including e-commerce and industry trade fairs.

Via RCS Sport, the RCS Group organises very important sporting events at global level, including the Giro d’Italia, the Dubai Tour, the Milan City Marathon and the Color Run, and presents itself as partner for the creation and organisation of events via the newly-established RCS Live Agency. In Spain, with Last Lap, it is a point of reference for non-conventional mass events. Also in the sports arena, RCS MediaGroup entered the football and sport on-line betting sector with the launch of GazzaBet, which began operating on September 10, 2014. This activity is also carried out in Spain through the Marca Apuestas website. In Italy, RCS MediaGroup is also active in the television sector, by means of the subsidiary Digicast S.p.A. with the satellite channels Lei, Dove and Caccia & Pesca, and via the web TV channels of Corriere della sera and La Gazzetta dello Sport. In addition, broadcasting of GazzettaTV began on February 26, 2015 on digital terrestrial channel 59. In Spain it is present with the first Spanish sports radio station Radio Marca, with the web TV channel of El Mundo and with the digital TV channels Canal 13 and Discovery max.

In addition to the natural digital off-shoots of the Group brands, the strategy towards innovation has led to the creation of the incubator for start-ups RCS Nest, which incorporates a number of successful start-ups such as Dunkest and to the development of multimedia systems such as Corriere Innovazione and transversal projects such as La27Ora. Numerous cross-media initiatives have also been launched, such as the TV talent show Masterpiece, the web series Una Mamma Imperfetta and the co-publishing contest YouCrime, and apps and e- commerce have been developed such as City1Tap, Quimammeshop and DoveClub.

RCS MediaGroup is the leading operator with regard to advertising sales in Italy and Spain. In Italy, besides advertising sales for the Group’s publications, the Advertising Division also acquired the national advertising sales activities for the Monrif Group and Editrice La Stampa and other important southern Italian publishers such as: Società Editrice Sud or SES for “Gazzetta del Sud”; Domenico Sanfilippo Editore for “La Sicilia”; Editrice del Sud Edisud for “Gazzetta del Mezzogiorno”; Giornale di Sicilia Editoriale Poligrafica for “il Giornale di Sicilia”; Sicilia Multimedia for “lasiciliaweb.it”. The publications “Il secolo XIX” and “Il secolo XIX.it” were added on January 1, 2015. Furthermore, together with other operators in the sector it established Gold 5, the new video display advertising concession holder. The Group is present in “below the line” marketing thanks to RCS Numix, a creative agency which includes various business lines in support of advertising customers. RCS MediaGroup holds an investment in m-dis Distribuzione Media S.p.A. and Corporaciòn Bermont, leaders in distribution on the newsstand channel in Italy and in the daily press in Spain, respectively.

The RCS Group is the second leading Italian operator in the book publishing field via RCS Libri. It should be pointed out that, on July 30, 2015, the Board of Directors, as part of the wider assessments of the Group’s strategy, acknowledged the communication received from Arnoldo Mondadori Editore S.p.A., for the integration of the offer sent on June 29, 2015 in relation to the purchase of the entire shareholding in RCS Libri S.p.A. and - despite reserving the right to take any decision on the transfer of the equity investment - unanimously resolved to provide the Chief Executive Officer with the mandate to continue negotiations and with the definition of the contractual aspects. The equity investment in the Finelco Group, operating in the radio sector, which heads up national broadcasters Radio 105 Network and Radio Monte Carlo, plus Virgin Radio, was reclassified to Assets held for sale and discontinued operations. The preliminary sale agreement was signed on July 30, 2015 with Blue Ocean S.r.l., a company representing a consortium of Italian entrepreneurs.

The Parent is a publicly listed company on Italy's electronically-traded equities market, organised and run by Borsa Italiana S.p.A.. It is headquartered in Via Angelo Rizzoli 8, Milan, and has been registered under number 12086540155 in the Milan Company Register since March 6, 1997 (RCS MediaGroup S.p.A. ISIN code: IT0004931496).

CONSOLIDATED FINANCIAL HIGHLIGHTS OF RCS MEDIAGROUP

2nd quarter 1st half of 2015 2014 2015 2014 (€/millions) (2)

INCOME STATEMENT

Revenue 335.4 348.2 591.9 611.1 EBITDA (1) 20.4 16.7 ( 3.0) ( 29.2) OPERATING LOSS ( 46.5) ( 5.1) ( 85.5) ( 65.1) Loss before tax and non-controlling interests ( 63.3) ( 17.0) ( 111.2) ( 87.7) Income taxes 2.2 1.4 14.5 13.9 Loss from continuing operations ( 61.1) ( 15.6) ( 96.7) ( 73.8) Profit (loss) from assets held for sale and discontinued operations (3) 1.1 ( 0.6) 1.1 3.4 Loss for the period ( 60.2) ( 16.1) ( 95.4) ( 70.0)

Basic earnings per share: continuing operations ( 0.12) ( 0.03) (0.19) (0.16) Diluted earnings per share: continuing operations ( 0.12) ( 0.03) (0.19) (0.16) Basic earnings per share: assets held for sale and discontinued operations 0.002 ( 0.001) 0.002 0.008 Diluted earnings per share: assets held for sale and discontinued operations 0.002 ( 0.001) 0.002 0.008

Jun-30-2015 Jun-30-2014 Dec-31-2014 STATEMENT OF FINANCIAL POSITION (2)

Net capital employed 709.4 829.8 755.5 Net financial debt (4) 526.3 518.2 482.5 _ of which net financial debt related to assets held for sale and discontinued operations Equity 183.1 311.6 273.0

Average number of employees excluding those involved with assets held for sale and discontinued operations 4,009 4,038 4,023

Average number of employees 4,009 4,038 4,023

(1) Earnings before interest, tax, amortisation/depreciation and impairment losses. (2) The Casa Editrice La Tribuna business unit and trademark were sold on March 1, 2014. This change led in total to a decrease in consolidated revenue of €0.3 million and an improvement in the EBITDA of €0.4 million. (3) In the first half, and in the second quarter of 2014, profit (loss) from assets held for sale and discontinued operations was restated to also take account of the profit (loss) accrued in the first half of 2014 and relating to the investees IGPDecaux transferred at June 30, 2015 and Finelco Group, classified under assets held for sale and discontinued operations starting from the end of 2014, whose preliminary sale contract was signed on July 30, 2015. (4) Indicator of financial structure, calculated as current and non-current financial liabilities less cash and cash equivalents, current financial assets and non-current financial assets recognised for derivatives. Net financial debt as defined by CONSOB in its Communication DEM/6064293 dated July 28, 2006 excludes non-current financial assets. Non-current financial assets at June 30, 2015, June 30, 2014 and December 31, 2014 amounted to zero and, therefore, RCS’s financial ratio at June 30, 2015, June 30, 2014 and December 31, 2014 matches the net financial debt as defined by the abovementioned CONSOB Communication.

The Half-year Report was approved by the Board of Directors on August 25, 2015.

REPORT ON OPERATIONS

DRAFTED IN ACCORDANCE WITH LAW DECREE No. 58/1998 AND SUBSEQUENT AMENDMENTS

GROUP PERFORMANCE IN THE SECOND QUARTER

The Italian macroeconomic context confirmed modest signs of a recovery, characterised by the halt in the fall of GDP at essentially stable values, with variations of around 0.1% (up 0.2% over the previous quarter: Source - Istat preliminary estimate). The unknown quantity relating to developments in the Greek crisis affected the overall scenario. By contrast, Spanish GDP recorded more robust growth of 3.1% on an annual basis in the second quarter of 2015 (Source: Ine). The advertising market disclosed a 6.6% decrease with respect to print in Italy during the second quarter of 2015, while the overall advertising market presented a drop of 3.4% with respect to the same period in 2014 (Source: Nielsen). In Spain, there was a 0.2% increase compared to the second quarter of 2014 for print, while the overall advertising market showed a 6.9% increase compared to the same period of last year (Source: I2P/ArceMedia). Reclassified income statement

Reference to financial 2nd quarter (€/millions) statements 2015 % 2nd quarter 2014 % Difference Difference (5) (4) ABA-B% Revenue 335.4 100.0 348.2 100.0 (12.8) (3.7%) Distribution revenue I 153.1 45.6 153.3 44.0 (0.2) (0.1%) Advertising revenue (1) I 139.7 41.7 149.7 43.0 (10.0) (6.7%) Other publishing revenue (2) I 42.6 12.7 45.2 13.0 (2.6) (5.8%) Operating expenses II (223.6) (66.7) (241.9) (69.5) 18.3 (7.6%) Personnel expense III (85.4) (25.5) (85.7) (24.6) 0.3 (0.4%) Allowance for impairment IV (2.6) (0.8) (2.9) (0.8) 0.3 (10.3%) Provisions for risks V (3.4) (1.0) (1.0) (0.3) (2.4) 240.0% EBITDA (3) 20.4 6.1 16.7 4.8 3.7 22.2% Amortisation of intangible assets VI (11.0) (3.3) (9.2) (2.6) (1.8) Depreciation of property, plant and equipment VII (5.2) (1.6) (5.4) (1.6) 0.2 Depreciation of investment property VIII (0.2) (0.1) (0.3) (0.1) 0.1 Other impairment losses on non-current assets IX (50.5) (15.1) (6.9) (2.0) (43.6) Operating loss (46.5) (13.9) (5.1) (1.5) (41.4) Net financial expense X (9.4) (2.8) (10.6) (3.0) 1.2 Gains (losses) on financial assets/liabilities XI (7.9) (2.4) 0.0 0.0 (7.9) Share of profits (losses) of equity-accounted investees XII 0.5 0.1 (1.3) (0.4) 1.8 Loss before tax (63.3) (18.9) (17.0) (4.9) (46.3) Income taxes XIII 2.2 0.7 1.4 0.4 0.8 Loss from continuing operations (61.1) (18.2) (15.6) (4.5) (45.5) Profit (loss) from assets held for sale and discontinued operations (4) XIV 1.1 0.3 (0.6) (0.2) 1.7 Loss before non-controlling interests (60.0) (17.9) (16.2) (4.7) (43.8) (Profit) loss attributable to non-controlling interests XV (0.2) (0.1) 0.1 0.0 (0.3) Loss attributable to owners of the parent (60.2) (17.9) (16.1) (4.6) (44.1)

(1) Advertising revenue in the second quarter of 2015 includes €77.4 million earned through the Communication Solutions division, a Group concessionaire (of which €63.9 million by Media Italy, €12.6 million by selling the spaces of other publishers, €0.5 million by Media Spain and €0.4 million by Advertising and Events) and €62.3 million earned directly by publishers (of which €41.1 million by Media Spain, €12.4 million by Sports Events in Advertising and Events, €4.7 million by Media Italy and €4.1 million by Corporate Functions and Other Activities). Advertising revenue in the second quarter of 2014 includes €86.4 million earned through the Communication Solutions division, a Group concessionaire (of which €71.7 million by Media Italy, €13.9 million by selling the space of other publishers, €0.5 million in relation to sundry events and €0.3 million by Media Spain) and €63.3 million earned directly by publishers (of which €44.1 million by Media Spain, €12.4 million by Sports Events, €2.6 million by Media Italy, €4.4 million by Corporate Functions and Other Activities and €0.2 million in intragroup eliminations). (2) Other publishing revenue mostly refers to revenue from the sale of film rights by the Unidad Editorial group, revenue from the television activities of Media Italy and Media Spain, royalty revenue from third parties, revenue associated with events and exhibitions in Italy and Spain, e-commerce revenue and revenue from the sale of customer lists and children's boxed sets by companies in the Sfera Group, which are classified within the Corporate Functions and Other Activities segment. (3) Earnings before interest, tax, amortisation/depreciation and impairment losses. (4) In the first half of 2014, profit (loss) from assets held for sale and discontinued operations (zero in the Half-year Report at June 30, 2014) was restated to also take account of the profit (loss) accrued in the first half of 2014 and relating to the investees IGPDecaux and Finelco Group, classified under assets held for sale and discontinued operations starting from the end of 2014. (5) These notes relate to the corresponding headings in the condensed income statement.

Revenue for the second quarter amounted to €335.4 million compared with €348.2 million in the same period of the previous year. The €12.8 million decrease is attributable, in the first place, to the decrease in advertising revenue (down €10 million) and, secondarily, the fall in other publishing revenue (down €2.6 million). Distribution revenue remained essentially stable (down €0.2 million) The trend in advertising revenue (down 6.7% compared to the second quarter of 2014), is mainly attributable to a decrease in advertising revenue in the Media Italy segment (down €5.7 million) and the Media Spain segment (down €2.7 million), both adversely affected by a comparison with the second quarter of 2014 characterised by the World Cup, in addition to, solely for the Media Spain segment, the effect of the reduction in the perimeter 10

of advertising sales activities on behalf of third parties, effective from 2015. On a like-for-like basis, the advertising revenue of Media Spain would essentially be in line with the second quarter of 2014, while the advertising revenue of Media Italy, although recording a reduced decrease, would show an adverse impact due to the unfavourable trend in the print media segment and advertising sales via the on-line media corriere.it and gazzetta.it. Advertising revenue with third party publishers, characterised by reduced profit margins, recorded a decrease of €1.3 million compared to the second quarter of 2014, despite the new advertising concession acquired in the first quarter of 2015 for the print media and on-line sales of the publication of Il Secolo XIX. The advertising sales of the other areas were essentially stable.

The decrease in other publishing revenue of €2.6 million is attributable, for €1.2 million, to the activities of the Media Spain segment, adversely impacted by the closure of two television channels in May 2014.

The generally stable trend in distribution revenue with respect to the second quarter of 2014 is the result of the drop in the distribution revenue of Media Spain, almost fully offset by the increases in the distribution revenue recorded by Media Italy and the Books segment. More specifically:

 A decrease of €5.7 million in the distribution revenue of the Media Spain segment, adversely affected primarily by the contracting market and the reduction in promotional activities for the publication El Mundo, benefitting profit margins.  An increase of €3.7 million in the distribution revenue of the Media Italy segment due to the positive effect of both the increase in the publication price (introduced for the Corriere della Sera in January 2015 and for La Gazzetta dello Sport in August 2014 and in June 2015) and the different timing of publication of add-on products with respect to the 2014 publishing plan (up €6 million over the second quarter of 2014). The overall effects of these initiatives more than offset the natural and continuous decline in circulation.  An increase in the distribution revenue of the Books segment (up €2 million), owing to both the positive performance in the period, thanks in particular to the books published by Marsilio and Adelphi and the special projects relating to Illustrated Books Italy, and the constant growth in digital revenue. The revenue of Rizzoli International Publications also recorded an increase of €0.5 million. EBITDA was positive at €20.4 million, compared to positive EBITDA of €16.7 million in the second quarter of 2014. Excluding non-recurring expense and income, EBITDA would amount to a positive €27.4 million and would be compared to EBITDA of €24.8 million in the same period of 2014, marking an increase of €2.6 million. EBITDA was affected, in the second quarter of 2015, by costs relating to the launch of the Gazzetta TV channel and the comparison with a second quarter of 2014 which benefitted from the effect of the World Cup and the special editions of Corriere della Sera and La Gazzetta dello Sport. Excluding these aspects and the positive impact of the Expo on EBITDA in the second quarter of 2015, EBITDA before non-recurring income and expense would register an improvement of around €13 million compared to the second quarter of 2014. The overall change in EBITDA before non-recurring income and expense (up €2.6 million) includes the positive contribution from the Advertising and Events segment (up €2.9 million compared to the second quarter of 2014), due to the strong performance of proprietary sporting events and cost reduction initiatives, in addition to the positive contribution from the Books segment (growth of €2.1 million). These increases were only partially offset by the decrease recorded by EBITDA before non-recurring income and expense of the Corporate Functions and Other Activities segment and the decrease of €0.8 million of Media Spain. EBITDA before non-recurring income and expense of the Media Italy segment was essentially stable, nonetheless affected by the comparison with the second quarter of 2014 and the already mentioned negative effects attributable mainly to the absence of significant sporting events and the costs incurred by Digital Factory S.r.l. for the launch of Gazzetta TV.

The positive trend continued with respect to the corresponding period of the previous year, highlighted by EBITDA before non-recurring expense and income, starting from the third quarter of 2013.

In the second quarter of 2015 the cost reduction activities set forth in the Plan continued, whose benefits amounted to €12.6 million, of which €10.1 million in Italy and €2.5 million in Spain.

Personnel expense was €85.4 million in the second quarter of 2015 (€85.7 million in the second quarter of 2014). Excluding net non-recurring expense of €5.6 million in the second quarter of 2015 (€7.7 million in the same period in 2014), an increase of €1.8 million would be registered, attributable almost entirely to Media Spain, as a result of the increase in the average headcount and the positive effect of the adjustment due to the revision of the salary model in the second quarter of 2014. The operating loss amounted to €46.5 million in the second quarter of 2015, compared to a loss of €5.1 million in the same period of 2014. The decrease of €41.4 million was due not only to the above-mentioned phenomena but also to greater amortisation/depreciation and impairment losses. The increase of €1.5 million is essentially attributable to intangible assets, particularly in the Books segment, due to the increases in investments linked to the lifting of the block on adoptions, in force from 2014, in the Education segment. The impairment losses in the second quarter of 2015 amounted to €50.5 million and compare with the impairment losses of €6.9 million in the same period of the previous year. They refer, for €34.7 million, to the impairment loss resulting from the impairment test on the publications of the Unidad Editorial Group (net of the reversal of the impairment loss of the publication Expansion amounting to €1.1 million) and for €14.9 million to the impairment losses on the intangible assets in the Books segment, and in particular on the Education segment (€14.1 million) and the Fiction and Non-Fiction segment (€0.8 million), as a result of the fair value measurement of the associated cash-generating units (as better described in note 16). Lastly, goodwill in the Sfera segment of Corporate Functions impaired by €1.2 million as a result of impairment testing. These amounts were partially offset by reversals of impairment losses of €0.3 million relating to the Television Activities of Digicast.

A summary of the main indicators by business area relating to the second quarters of 2015 and 2014 is shown below:

(€/millions) 2nd quarter 2015 2nd quarter 2014 EBITDA EBITDA OPERATING OPERATING BEFORE NON- % of % of % of BEFORE NON- % of % of % of Revenue EBITDA PROFIT Revenue EBITDA PROFIT RECURRING revenue revenue revenue RECURRING revenue revenue revenue (LOSS) (LOSS) ITEMS ITEMS Media Italy 137.4 15.6 11.4% 14.3 10.4% 10.7 7.8% 137.9 15.4 11.2% 15.2 11.0% 4.3 3.1% Media Spain 87.1 10.2 11.7% 5.2 6.0% (34.7) (39.8)% 96.9 11.1 11.5% 4.0 4.1% (0.8) (0.8)% Books 47.7 0.4 0.8% 0.0 0.0% (16.3) (34.2)% 45.7 (1.7) (3.7)% (2.3) (5.0)% (2.6) (5.7)% Advertising and Events 110.7 8.7 7.9% 8.4 7.6% 8.4 7.6% 120.1 5.8 4.8% 5.6 4.7% 5.6 4.7% Corporate Functions and Other Activities 19.6 (7.5) (38.3)% (7.5) (38.3)% (14.6) n.a 20.8 (5.8) (27.9)% (5.8) (27.9)% (11.5) n.a Other and eliminations (67.1) 0.0% 0.0 0.0% 0.0 n.a (73.2) 0.0% - n.a (0.1) n.a Consolidated 335.4 27.4 8.2% 20.4 6.1% (46.5) (13.9)% 348.2 24.8 7.1% 16.7 4.8% (5.1) (1.5)%

Net financial expense decreased by €1.2 million, passing from €10.6 million in the second quarter of 2014 to €9.4 million in the second quarter of 2015. There was an improvement of €0.5 million due to lower interest expense on loans granted by the banking system, essentially associated with the reduction in interest rates applied following the renegotiation in August 2014 of the applicable conditions of the Loan Agreement governing medium and long-term loans. This was augmented by a decrease in net expense, deriving from the discounting of the financial statement items.

Losses on financial assets and liabilities amounted to €7.9 million, include estimated ancillary charges relating to the application of the fair value less cost to sell to the cash generating units of the Books segment (as better described in note 16), settlement expense of certain investees and the impairment loss on a financial receivable from a printing centre. These losses were only partially offset, primarily by the capital gain realised on the transfer of Accademia Holding (€1.8 million) and the reversal of the impairment loss on financial assets available for sale. In the second quarter of 2014, this item amounted to zero.

The share of profits (losses) of equity-accounted investees amounted to €0.5 million (net loss of €1.3 million in the second quarter of 2014) due to the share of the improved results of the investees m-dis Distribuzione Media S.p.A. and Corporation Bermont. In the second quarter of 2014, the item also included the impairment loss on the investee INIM 2 (€0.9 million).

Current tax income stood at €2.2 million in the second quarter of 2015, compared to €1.4 million in positive taxes in the second quarter of 2014. The variation is mainly attributable to the higher deferred tax assets and lower IRAP taxes.

agreement signed on July 30, 2015. In the second quarter of 2014, the profit from assets held for sale and discontinued operations was restated with respect to the total in the half-year report in 2014 to take account of the profit accrued in the second half of 2014 relating to the investees IGPDecaux and Gruppo Finelco, classified under assets held for sale and discontinued operations starting from the end of 2014.

The loss for the second quarter of 2015 was €60.2 million (loss of €16.1 million in the second quarter of 2014). The decrease compared to the second quarter of 2014 amounted to €44.1 million and reflects the elements already mentioned.

GROUP PERFORMANCE IN THE FIRST HALF OF THE YEAR

The Group's financial highlights and related comments are presented below.

Reference to financial (€/millions) statements First half of 2015 % First half of 2014 % Difference Difference (6) (4) (5) ABA-B% Revenue 591.9 100.0 611.1 100.0 (19.2) (3.1%) Distribution revenue I 287.2 48.5 288.1 47.1 (0.9) (0.3%) Advertising revenue (1) I 236.0 39.9 250.8 41.0 (14.8) (5.9%) Other publishing revenue (2) I 68.7 11.6 72.2 11.8 (3.5) (4.8%) Operating expenses II (418.8) (70.8) (444.5) (72.7) 25.7 (5.8%) Personnel expense III (165.4) (27.9) (186.0) (30.4) 20.6 (11.1%) Allowance for impairment IV (5.2) (0.9) (7.0) (1.1) 1.8 (25.7%) Provisions for risks V (5.5) (0.9) (2.8) (0.5) (2.7) 96.4% EBITDA (3) (3.0) (0.5) (29.2) (4.8) 26.2 89.7% Amortisation of intangible assets VI (21.1) (3.6) (17.8) (2.9) (3.3) Depreciation of property, plant and equipment VII (10.3) (1.7) (10.7) (1.8) 0.4 Depreciation of investment property VIII (0.3) (0.1) (0.5) (0.1) 0.2 Impairment losses on non-current assets IX (50.8) (8.6) (6.9) (1.1) (43.9) Operating loss (85.5) (14.4) (65.1) (10.7) (20.4) Net financial expense X (18.3) (3.1) (20.9) (3.4) 2.6 Gains (losses) on financial assets/liabilities XI (8.1) (1.4) 0.0 0.0 (8.1) Share of profits (losses) of equity-accounted investees XII 0.7 0.1 (1.7) (0.3) 2.4 Loss before tax (111.2) (18.8) (87.7) (14.4) (23.5) Income taxes XIII 14.5 2.4 13.9 2.3 0.6 Loss from continuing operations (96.7) (16.3) (73.8) (12.1) (22.9) Profit (loss) from assets held for sale and discontinued operations XIV 1.1 0.2 3.4 0.6 (2.3) Loss before non-controlling interests (95.6) (16.2) (70.4) (11.5) (25.2) (Profit) loss attributable to non-controlling interests XV 0.2 0.0 0.4 0.1 (0.2) Loss attributable to owners of the parent (95.4) (16.1) (70.0) (11.5) (25.4)

(1) Advertising revenue in the first half of 2015 includes €134.8 million earned through the Communication Solutions division, a Group concessionaire (of which €111.2 million by Media Italy, €22.1 million by selling the space of other publishers, €1 million by Media Spain and €0.5 million by various Advertising and Events) and €101.2 million earned directly by publishers (of which €71.3 million by Media Spain, €15.7 million by Advertising and Events, €7.9 million by Media Italy, €6.5 million by Corporate Functions and Other Activities and €0.2 million in intragroup eliminations). Advertising revenue in the first half of 2014 includes €148.2 million earned through the Communication Solutions division, a Group concessionaire (of which €125.1 million by Media Italy, €21.9 million by selling the Space of other publishers, €0.7 million by Media Spain and €0.5 million by Advertising and Events) and €102.6 million earned directly by publishers (of which €74.5 million by Media Spain, €16.5 million by Advertising and Events, €6.8 million by Corporate Functions and Other Activities, €5.2 million by Media Italy and €0.4 million in intragroup eliminations). (2) Other publishing revenue mostly refers to revenue from the sale of film rights by the Unidad Editorial Group, revenue from the television activities of Media Italy and Media Spain, royalty revenue from third parties, revenue associated with events and exhibitions in Italy and Spain, e-commerce revenue and revenue from the sale of customer lists and children's boxed sets by companies in the Sfera Group, which are classified within the Corporate Functions and Other Activities segment. (3) Earnings before interest, tax, amortisation/depreciation and impairment losses. (4) The Casa Editrice La Tribuna business unit and trademark were sold on March 1, 2014. This change led in total to lower consolidated revenue for €0.3 million and an improvement in EBITDA of €0.4 million. (5) In the first half of 2014, profit from assets held for sale and discontinued operations (€7.1 million in the Half-year Report at June 30, 2014) was restated to also take account of the profit (loss) accrued in the first half of 2014 and relating to the investees IGPDecaux and Gruppo Finelco, classified under assets held for sale and discontinued operations starting from the end of 2014. (6) These notes relate to the corresponding headings in the condensed income statement.

The change in revenue with respect to the first half of 2014 is presented below.

M€ ‐5

6 611

‐16 ‐11

Distribution/ -13 Sundry 360 5 ‐3 0 592 -2 592 -3 5 ‐1 0

356 356

Advertising 251

236 236

Revenue Media Media Books Other To t a l Amounts Revenue first half of Italy Spain received - first half of 2014 non-controlling 2015 interests

Revenue at first half of 2015 amounted to €591.9 million, marking a decrease of €19.2 million over the first half of 2014, attributable mainly to the trend in advertising revenue (down €14.8 million, marking a decrease of 5.9% compared to the advertising revenue in the first half of 2014), and lower other publishing revenue (down €3.5 million). Distribution revenue remained essentially stable (down 0.3%).

Revenue from digital activities, which are transversal across almost all segments of the Group, represents 13.6% of the Group’s total revenue (15.2% excluding the Books segment) and reached €80.8 million at June 30, 2015, up 1.5% compared to the first half of 2014.

Advertising revenue for the first half of 2015 came to €236 million, down €14.8 million compared to the same figure in the first half of 2014. The main contributions to the variation came from the fall in the advertising revenue of Media Italy (down €11.2 million), adversely impacted by the persistently decreasing trend in the reference markets of the two newspaper publications, in addition to, for the La Gazzetta dello Sport publications, the positive effect generated by the World Cup on the first half of 2014. Also the advertising revenue of Media Spain, down €2.9 million, was negatively affected by the comparison with the first half of 2014 in relation to the advertising sales of Marca, augmented in this case by the effects of the reduction in the perimeter of activities of advertising sales on behalf of third parties, effective from 2015. Excluding these effects, the trend in the advertising sales of Media Spain would register a decrease of just 0.9% compared to the first half of 2014.

Other publishing revenue recorded a net decrease of €3.5 million compared to the first half of 2014, primarily due to other publishing revenue of Media Spain (down €2.1 million) and, in particular, to the effects of the closure of two of the four television channels, in fulfilment of the legislative provisions introduced in Spain in May 2014, and to lower mail-order sales of Corriere della Sera paper add-on products and lower revenue generated by the Sfera group in China. On the contrary, the Books segment recorded a positive trend in other publishing revenue, due to higher revenue from the rights sales (up €0.8 million).

Distribution revenue, although registering a generally stable performance, was affected by the following main phenomena:

 The €11.2 million decrease in the distribution revenue of the Media Italy segment is attributable to the decline in circulation. In particular, the average daily circulation of both El Mundo and Marca (including digital copies) recorded a decrease of 13.4% compared to the same figure in the first half of 15

2014, with both, nonetheless, retaining their respective market positions. Digital revenue in the first half of 2015 accounted for 16.4% of the segment’s total revenue, up 3% with respect to the same period in 2014.  The €7 million increase in the distribution revenue of the Media Italy segment is mainly due to the growing publishing revenue of the Corriere publications and the increase in the cover price of Corriere della Sera as from January 2015 (€1.5) and of La Gazzetta dello Sport with two increases in August 2014 (€1.4) and on June 12, 2015 (€1.5), and the strong performance of sales of add-on products.  The growth in the distribution revenue of the Books segment (up €3.7 million) is attributable, for €2.5 million, to the Fiction and Non-Fiction segment and, in particular, to the publishing products of the third party publishing houses Marsilio and Adelphi, as well as to digital publishing products, no book products and special projects for Illustrated Books Italy, in addition to higher revenue generated by the US investee Rizzoli International Publications (up €1.4 million compared to the first half of 2014) and the appreciation of the dollar and higher sales, which made it possible to offset the lower revenue generated by the temporary closure of the historic Rizzoli bookstore in New York, which re-opened recently (at the end of July 2015). Education revenue remained essentially stable (down €0.2 million).

The change in EBITDA before non-recurring income and expense with respect to June 30, 2014 is presented below.

M€ 1,41.4 5.1 3.93,9

3,73.7

0.30,3

‐-4,24.2 EBITDA Media Media Books Other EBITDA first half of Italy Spain first half of 2014 2015

EBITDA was a negative €3 million, an improvement of €26.2 million with respect to the first half of 2014. Excluding €8.1 million in net non-recurring expense in the first half of 2015, EBITDA would be a positive €5.1 million, and would be compared with negative EBITDA of €4.2 million in the first half of 2014 before non- recurring expense, marking a €9.3 million increase, over €6 million of which generated in the first quarter and €2.6 million in the second quarter, EBITDA before non-recurring income and expense, was affected, in the first half of 2015, by costs relating to the launch of the channel Gazzetta TV and the comparison with a second half of 2014 which benefitted from the effect of the World Cup and the special editions of Corriere della Sera and La Gazzetta dello Sport. Excluding these aspects and the positive impact of the Expo on EBITDA in the first half of 2015, EBITDA before non-recurring income and expense would register an improvement of more than €20 million compared to the first half of 2014.

Net non-recurring expense in the first half of 2015, amounting in total to €8.1 million, is attributable for around €6.3 million to the personnel restructuring plans relating mainly to Media Italy (€2.7 million) and to Media Spain (€2.6 million), also including the expense incurred for the change of management of the publication El Mundo), as well as, for €3 million to non-recurring expense linked mainly to the television activities of Media 16

Spain (€2 million) and the withdrawal of the Advertising and Events sales network from some geographic areas (€0.4 million). Non-recurring income of €1.2 million was also recorded, relating to the release of provisions relating to the process of rationalisation of some printing centres.

The improvement in EBITDA before non-recurring income and expense, with respect to the first half of 2014, was €9.3 million and regards:

 The trend in EBITDA before non-recurring income and expense of the Media Italy segment was stable on the whole (up €0.3 million). Also excluding from the comparison the costs incurred in the first half of 2015 for the launch of GazzettaTV, and the positive impacts on the first half of 2014 of the World Cup and special projects, EBITDA in the first half of 2015, excluding the positive effects of the Expo, would record an improvement of €10 million.  EBITDA before non-recurring income and expense in the Media Spain segment rose by €3.7 million. Excluding the negative effects of the closure of two television channels, this increase would be €4.6 million, due to the constant cost reduction initiatives and recovery of efficiency, as well as higher digital revenue. These initiatives more than offset the drop in circulation.  The increase in EBITDA before non-recurring expense of the Advertising and Events segment (up €3.2 million) is mainly due to the cost efficiencies achieved and the growth in margins related to the organisation of sporting events by RCS Sport.  The increase of €3.9 million in EBITDA before non-recurring expense compared to the first half of 2014 recorded by the Books segment, due to both the higher sales of digital products and the publishing products of Adelphi and Marsilio, and the greater revenue deriving from the sales of copyrights and the launch of special projects in relation to Italian Illustrated Books. A positive contribution was also made by the EBITDA before non-recurring expense of the Education segment and of Rizzoli International Publications, up €1.7 million and €0.3 million respectively. In particular, greater investments of €1.9 million were recorded in the half compared to the same period in 2014, incurred for the conception and production of school non-fiction books, linked to the recent development in publishing products and €1.6 million incurred for the re-opening of the historic New York bookstore at a new address.  The decrease in EBITDA before non-recurring expense of Corporate Functions and Other Activities (down €1.8 million) was mainly associated with Corporate Functions, as a result of the full effect, in 2015, of the rental expenses resulting from the transfer of the historic Corriere della Sera building completed on March 6, 2014, as well as lower revenue generated by Childhood Verticals in China.

Group capital expenditure in property, plant and equipment and intangible assets continued. During the first half of 2015, such expenditure amounted to €24.2 million, €4.2 million of which as the development costs of the publishing products of the Education segment. Around half of the remaining investments was incurred in the digital and Information Technology area. In particular, during the half and in the subsequent months, actions continued to enhance publishing and enrich the digital offer for the Corriere della Sera and La Gazzetta dello Sport newspapers, with a view to increasing the total audience and strengthening vertical channels with the launch of new subject areas and initiatives, linked in particular to the Expo 2015. The Corriere della Sera offered a rich programme of events in the last few months at the “#CasaCorriere@Expo”, the only daily newspaper stand present at the Expo and the special issue of Corriere della Sera on May 1, with 4.5 million free copies distributed at the opening of the event, as well as the app dedicated to the universal event City1Tap. In February, La Gazzetta dello Sport revolutionised its offer, enriching its products with the launch of Gazzetta Tv, which - also due to the exclusive acquisition of the rights to the 2015 Copa América, Serie A volleyball and basketball - registered good results in terms of audience shares in the half (average share of 0.52% all day and 1.15% in late evening, with a peak share above 18% - Auditel - June 2015). At the Expo 2015, La Gazzetta dello Sport, together with Aic (Associazione italiana calciatori - Italian Footballers’ Association) staged the Football Heroes event, a must-see for sports fans and a place for subject specific meetings.

March saw the launch of the new Expansiòn site, the leading business newspaper in Spain, while the following month saw the debut of Marca Buzz, Marca’s new sports and entertainment portal dedicated to young people. Several initiatives were also implemented on the magazines front, with the restyling of iodonna.it, the launch of the Dove and Style Magazine, the launch of AIR, Abitare Instagram Residency, the new on-line residence project on-line Abitare for Instagram, and several successful events took place, like the 2015 edition of the “The Art of Living” exhibition, the renewal of the system connected with the publication OGGI, with the new release of oggi.it and OGGI Cucino and the launch of the new monthly Oggi Cucino FREE – The art of living gluten-free. As regards advertising, RCS Communication Solutions was formed on February 11, 2015, a new Group concessionaire set-up, as well as NuMix Agency, which revolutionise the offering of marketing services for businesses, and can already bank on agreements and partnerships with Madai, Blurum, Mosaicoon and Warner Music Italia, with whom the RCS Group has signed an exclusive agreement for the sale of the advertising spaces of the video channel YouTube of the latter throughout Italy. The major mass events included the successful races, the Milan City Marathon, Color Run and Electric Run, which will see the addition of the Edenred Ekirun in September, the Italian version of the famous relay race on Japanese roads, plus non-sporting events such as Bimbinfiera 2015, the largest Italian trade fair dedicated to families. In addition, in cycling, the 98th edition of the Giro d’Italia was hugely successful, and abroad, the second Dubai Tour, in anticipation of the first Abu Dhabi Tour in October. As regards the world of books, two authors published in Italy by Rizzoli won the 2015 Pulitzer Prize: “Il patto col diavolo. Mussolini e Papa Pio XI” (“The pact with the devil. Mussolini and Pope Pius XI”) by David Kertzer for best biography and “Tutta la luce che non vediamo” (All the Light We Cannot See) by Anthony Doerr for best novel. At the end of July, the new Rizzoli bookstore was opened to the public in New York, in the new site in the centre of Manhattan, in the heart of the NoMad district. BooktoBook Magazine was also created, RCS Libri’s blog dedicated to readers. Lastly, as regards social responsibility, the RCS Group, with Corriere della Sera, La Gazzetta dello Sport, GazzettaTV and the Fondazione Candido Cannavò, was a media partner in the Giochi Senza Barriere 2015 exhibition, organised with the onlus (non-profit organisation for social welfare) art4sport to promote sport as a tool for integration between young able-bodied and disabled people. On June 14, 2015, the “Open Day dello Sport” (Open day of sport) event was organised at the San Vittore prison in Milan, during which the inmates had the chance to take part in various sporting activities, including the football tournament organised in memory of Candido Cannavò. Huge success was achieved by the new reading formula, the Corriere della Sera supplement, enriched and now on a paid format, selling out on its first release on Sunday July 19.

In the first half of 2015 the cost reduction activities set forth in the Plan continued, whose benefits in the first half of 2015 amounted to €25.6 million, of which €20.1 million in Italy and €5.5 million in Spain.

Personnel expense decreased by €20.6 million. That change, excluding from that item net non-recurring expense in the first half of 2015 totalling €6.3 million, and in the first half of 2014 totalling €24.2 million, would have been an overall decrease of €2.7 million, as a result of decreases relating mainly to Media Italy (down €3 million) and Corporate Functions and Other Activities (down €1.9 million), only partially offset by the increase recorded by the other segments, primarily including Media Spain. The overall decrease in the average headcount of 29 compared to the first half of 2014, was driven by the reduction in the headcount of Corporate Functions (down 57).

The operating loss amounted to €85.5 million, compared with an operating loss of €65.1 million in the first half of 2014. The decrease of €20.4 million not only reflects the phenomena described above but higher amortisation, depreciation and impairment losses. The increase in amortisation relates to intangible assets (up €3.3 million compared to the first half of 2014), partly offset by a reduction in the depreciation of property, plant and equipment and investment property (total decrease of €0.6 million). The increase in the amortisation of intangible assets relates, for €1.6 million to the Books segment, for development costs incurred by the Education segment and capitalised starting from the final quarter of 2014, as a result of the lifting of the block on adoptions; the remaining amount of €1.6 million relates to Media Italy, Media Spain and Corporate Functions, essentially due to greater investments incurred in the digital and television segment. The impairment losses in the first half of 2015 amounted to €50.8 million and compare with the impairment losses of €6.9 million in the same period of the previous year. They refer, for €34.7 million, to the impairment loss resulting from the impairment test of the publications of the Unidad Editorial Group (net of the reversal of the impairment loss of the publication Expansion amounting to €1.1 million) and for €14.9 million to the 18

impairment losses on the intangible assets in the Books segment, and in particular on the Education segment (€14.1 million) and the Fiction and Non-Fiction segment (€0.8 million), as a result of the fair value measurement of the associated cash-generating units. Lastly, goodwill in the Sfera segment of Corporate Functions was impaired by €1.2 million as a result of impairment testing.

Revenue, EBITDA and operating profit (loss) by operating segment are summarised below, illustrated in the “Operating segment performance” section, to which reference should be made for more details.

(€/millions) Jun-30-2015 Jun-30-2014

EBITDA EBITDA OPERATING OPERATING BEFORE NON- % of % of % of BEFORE NON- % of % of % of Revenue EBITDA PROFIT Revenue EBITDA PROFIT RECURRING revenue revenue revenue RECURRING revenue revenue revenue (LOSS) (LOSS) ITEMS ITEMS

Media Italy 258.7 15.1 5.8% 13.6 5.3% 5.9 2.3% 260.6 14.8 5.7% 12.0 4.6% (2.5) (1.0)% Media Spain 160.2 7.8 4.9% 2.7 1.7% (42.0) (26.2)% 176.6 4.1 2.3% (16.6) (9.4)% (26.2) (14.8)% Books (1) 76.6 (6.0) (7.8)% (6.9) (9.0)% (24.1) (31.5)% 72.1 (9.9) (13.7)% (11.0) (15.3)% (11.6) (16.1)% Advertising and Events 178.6 4.4 2.5% 3.9 2.2% 3.9 2.2% 194.0 1.2 0.6% 0.8 0.4% 0.7 0.4% Corporate Functions and Other Activities 36.9 (16.2) (43.9)% (16.3) (44.2)% (29.2) n.a 37.8 (14.4) (38.1)% (14.4) (38.1)% (25.5) n.a Other and eliminations (119.1) 0.0% (0.0) 0.0% 0.0 n.a (130.0) 0.0% - n.a 0.0 n.a Consolidated 591.9 5.1 0.9% (3.0) (0.5)% (85.5) (14.4)% 611.1 (4.2) (0.7)% (29.2) (4.8)% (65.1) (10.7)%

Net financial expense decreased by €2.6 million, passing from €20.9 million in the first half of 2014 to €18.3 million in the first six months of 2015. There was an improvement of €1 million due to lower interest expense on loans granted by the banking system, essentially associated with the reduction in interest rates applied following the renegotiation in August 2014 of the applicable conditions of the Loan Agreement governing medium and long-term loans. This was augmented by a decrease of €1.4 million, mainly relating to net expense deriving from the discounting of the financial statement items.

Losses on financial assets and liabilities amounted to €8.1 million, include estimated ancillary charges relating to the application of the fair value less cost to sell to the cash generating units of the Books segment, the settlement expense of certain investees, the impairment loss on a financial receivable from a printing centre and the impairment loss on financial assets held for sale. These losses were only partially offset, primarily by the capital gain realised on the transfer of Accademia Holding and the reversal of the impairment loss on financial assets available for sale. In the first half of 2014, this item amounted to zero.

The share of profits of equity-accounted investees amounted to €0.7 million, compared with a loss of €1.7 million in the first half of 2014. The increase of €2.4 million is essentially attributable to the better net result realised in the first half of 2015 by the companies m-dis Distribuzione Media S.p.A. and Corporation Bermont (compared to the first half of 2014), augmented by the increase deriving from a comparison with the figures for the first half of 2014 adversely impacted by the impairment loss on the investee (zero in the first half of 2015).

Profit from assets held for sale and discontinued operations came to €1.1 million and is composed of the realignment of the company amount of the investee Finelco Group to the price agreed in the preliminary sale agreement signed on July 30, 2015. In the first half of 2014, profit from assets held for sale and discontinued operations amounted to €3.4 million, different from the profit of €7.1 million reported in the Half-year Report at June 30, 2014. In fact, the profit from assets held for sale and discontinued operations at June 30, 2014 was restated to also take account of the profit (loss) accrued in the first half of 2014 and relating to the investees IGPDecaux and Finelco Group, classified under assets held for sale and discontinued operations starting from the end of 2014.

Income taxes registered an income of €14.5 million in the first half of 2015, compared to a tax income €13.9 million in taxes in the first half of 2014. This item includes positive taxes of €16.1 million, partially offset by IRAP of €1 million, taxes on foreign companies and the taxes of previous year totalling €0.6 million. The change in income taxes relates mainly to the lower IRAP taxes, partially offset by lower prepaid taxes. The loss for the first half of 2015 was €95.4 million (loss of €70 million in the first half of 2014), and reflects the trends described above, adjusted by loss attributable to non-controlling interests (€0.2 million).

Breakdown of the number of employees by geographic segment

The exact headcount of the RCS Group at June 30, 2015 was down 17 on June 30, 2014. The trend in the headcount was characterised by efficiency initiatives, implemented mainly through restructuring plans, partially offset by new hires primarily for developing business and net increases due to the variation in the perimeter of the Media Italy segment (up 39 following the acquisition of the business unit relating to RCS Produzione Padova and down 15 due to closure of the company Rizzoli Beijing Advertising).

The exact headcount at June 30, 2015 (3,984) includes 151 journalists working under a solidarity regime, involving a reduction in working hours up to a maximum of 30% and belonging to the ‘Media Italy’ (for Verticals) and ‘Corporate Functions and Other Activities’ segments (relating to the Childhood Segment).

The exact headcount broken down by geographic segment is shown below.

Italy Spain Other countries Total Exact headcount June 30 June 30 June 30 June 30

2015 2014 2015 2014 2015 2014 2015 2014

Media Italy 1,509 1,527 009 28 1,518 1,555

Media Spain 001,455 1,422 001,455 1,422

Books 272 266 0044 41 316 307

Advertising and Events 209 205 003 1 212 206

Corporate Functions and Other Activities 362 381 37 36 84 94 483 511

Total 2,352 2,379 1,492 1,458 140 164 3,984 4,001

The average number of RCS Group employees in the first six months of 2015 totalled 4,009, less than in the same period of 2014 (4,038). The total of 29 employees is due, on the one hand, to the effects of the restructuring plans and efficiency initiatives, and on the other, the development of new business and operations involving a change in the scope of consolidation.

Of particular significance was the reduction in the workforce in the Corporate Functions and Other Activities segment (down 57, as a result of efficiency initiatives), while a slight decrease was registered by the workforce in the Media Italy (following the closure of the company Rizzoli Beijing Advertising and efficiency actions partially offset by the acquisition of the business unit relating to RCS Produzioni Padova), as well as the Books segment (owing to the reduction in the workforce of the company Rizzoli International Publishing and the transfer of the business unit of Casa Editrice La Tribuna and, on the other hand, the consolidation of the company Adelphi). Compared to the figure in the first half of 2014, the average workforces of the Media Spain and Advertising and Events areas recorded increases of 25 (as a result of the development of new projects and the acquisition of new profiles, particularly in the digital domain) and 9 (in particular following the strengthening of RCS Sport S.p.A.), respectively.

Employees working in the Group’s foreign operations accounted for approximately 41% of the Group’s average total in the first half of 2015.

The breakdown of the average number of employees by geographic segment is shown below.

Italy Spain Other countries Total Average headcount first half of first half of first half of first half of 2015 2014 2015 2014 2015 2014 2015 2014 Media Italy 1,523 1,504 008 31 1,531 1,535

Media Spain 001,446 1,421 001,446 1,421

Books 271 262 0042 53 313 315 Advertising and Events 208 201 002 0 210 201

Corporate Functions and Other Activities 383 434 37 37 89 95 509 566

Total 2,385 2,401 1,483 1,458 141 179 4,009 4,038 20

Reclassified statement of financial position

(€/millions) Reference to the Jun-30-2015 % Dec-31-2014 % financial statements (2)

Intangible assets XVI 454.9 64.1 508.8 67.3 Property, plant and equipment XVII 115.0 16.2 118.7 15.7 Investment property XVIII 24.6 3.5 24.9 3.3 Financial assets XIX 240.3 33.9 225.8 29.9 Non-current assets 834.8 117.7 878.2 116.2 Inventories XX 94.7 13.3 78.8 10.4 Trade receivables XXI 368.5 51.9 392.6 52.0 Trade payables XXII (374.2) (52.7) (395.2) (52.3) Other assets/liabilities XXIII (38.1) (5.4) (22.8) (3.0) Net working capital 50.9 7.2 53.4 7.1 Provisions for risks and charges XXIV (76.5) (10.8) (83.7) (11.1) Deferred tax liabilities XXV (70.7) (10.0) (75.6) (10.0) Employee benefits XXVI (49.4) (7.0) (53.7) (7.1) Net operating capital employed 689.1 97.1 718.6 95.1 Net capital employed from assets held for sale XXVII 20.3 2.9 36.9 4.9 Net capital employed 709.4 100.0 755.5 100.0 Equ i ty XXVIII 183.1 25.8 273.0 36.1 Non-current financial liabilities XXIX 446.8 63.0 393.8 52.1 Current financial liabilities XXX 93.8 13.2 97.7 12.9 Non-current financial liabilities recognised for derivatives XXXI 13.5 1.9 16.5 2.2 Non-current financial assets recognised for derivatives XXXII -- -- Cash and cash equivalents and current financial assets XXXIII (27.8) (3.9) (25.5) (3.4) Net financial debt (1) 526.3 74.2 482.5 63.9 Total sources of financing 709.4 100.0 755.5 100.0

(1) Indicator of financial structure, calculated as current and non-current financial liabilities less cash and cash equivalents, current financial assets and non-current financial assets recognised for derivatives. Net financial debt as defined by CONSOB in its Communication DEM/6064293 dated July 28, 2006 excludes non-current financial assets. Non-current financial assets at June 30, 2015 and December 31, 2014 amounted to zero and, therefore, RCS’s financial ratio at June 30, 2015 and at December 31, 2014 matches the net financial debt as defined by the above-mentioned CONSOB Communication. (2) These references relate to the corresponding captions in the statement of financial position.

Net capital employed amounted to €709.4 million and reports a net decrease of €46.1 million compared to December 31, 2014, also considering assets held for sale (down €16.6 million mainly due to the sale of the investee IGPDecaux). Before net assets held for sale and discontinued operations, net capital employed fell by €29.5 million. Non-current assets fell by €43.4 million, determined by the reduction in intangible fixed assets, property, plant and equipment and investment property due to amortisation/depreciation (€31.7 million) and impairment losses (€50.8 million). This decrease was only partially offset by investments totalling €24.2 million, and the increase in financial assets amounting to €14.5 million, mainly owing to higher prepaid taxes. The decreases include the change in working capital (down €2.5million), provisions (up €11.5 million) essentially due to the additional uses made with respect to December 31, 2014, of the provision for deferred tax liabilities (up €4.9 million). Please refer to the specific notes of these condensed interim consolidated financial statements for comments on the trend in the main items of net capital employed.

Equity recorded a reduction with respect to December 31, 2014 amounting to €89.9 million. In particular, Group equity fell by €90.6 million, while non-controlling interests rose by €0.7 million. The variation is essentially due to the profit for the half and increase in the Cash Flow Hedge reserve and the translation reserve.

Net financial debt amounted to €526.3 million, marking an increase of €43.8 million since December 31, 2014. The first half of 2015 saw the collection generated by the transfer of the equity investment in IGPDecaux (€18 million) to Digital Accademia Holding S.r.l., amounting to €2.4 million.

These changes were more than offset by the seasonal trend of core activities which, however, improved by around €30 million compared to the same period in the previous year, by outlays incurred for the ongoing reorganisation process and new capital expenditure.

OTHER INFORMATION

Rizzoli civil litigation

In relation to this case, please refer to the section “Other Information” in the Annual Financial Report at December 31, 2014, noting that Mr. Rizzoli’s death was announced at the hearing on October 21, 2014 and the Appeals Court suspended the proceedings. Subsequently, in late January 2015, the successors took up the case once again. At the hearing on March 3, 2015, the case was postponed for the presentation of final pleadings on next October 6.

Veo Tv civil litigation

As reported in the section “Other information” of the Annual Report at December 31, 2014, on November 24, Veo Television S.A. received an additional appeal submitted by M&M Infonet Associated s.l. against the agreement of the Council of Ministers of June 11, 2010 whereby the concession on the second television channel of the remaining two channels that are currently broadcast is transformed into a licence. In Veo Television S.A.’s response, it requested that this appeal be found inadmissible or rejected. On June 11, M&M Infonet Associated s.l. communicated its waiver, asking the Supreme Court to dismiss the case. On June 30, 2015, the Supreme Court upheld the request from M&M Infonet Associated S.L., declaring the case to be dismissed.

RCS Sport Events

With reference to the aforementioned events, please refer to the section “Other Information” in the Annual Report at December 31, 2014. It should be noted that the Court of Milan issued a measure on January 27, 2015 postponing the first hearing to May 26, 2015 to enable the defendants to summon third parties. RCS MediaGroup S.p.A. received this summons on February 12 and 19. At the hearing on May 26, the Judge, having acknowledged the non-completion, within the legal terms, of the notification from the defence counsel of the former General Manager to a former employee, put the first hearing back to November 10, 2015, at 10.00, to allow the renewal of the notice to the former employee.

The Judge for Preliminary Investigations at the Court of Milan upheld the compromise request formulated by RCS Sport and issued a judgment, ordering the party to pay a sum of €250,000, applying an amount equal to half of that envisaged for the penalty based on the pre-selected procedure (“application of penalty requested by the party”), also awaiting full compensation of the damages to public entities as well as the adoption of an organisational model suited to prevent the same type of offences as those verified.

**********

Effective as of August 7, 2012, the Company decided to take advantage of the rights set forth in Art. 70, paragraph 8 and Art. 71, paragraph 1-bis of the Regulation pursuant to CONSOB Resolution no. 11971/1999 as amended.

OPERATING SEGMENT PERFORMANCE

MEDIA ITALY

Segment profile

The Media Italy segment is dedicated to the editing, production and marketing of publications relating to the titles Corriere della Sera and La Gazzetta dello Sport, and of Vertical and integrated publishing products. It also includes television and digital development activities.

Corriere della Sera, the leading national news and information daily, comprises a structured, integrated platform of paper and digital information media, including the national daily, a network of local titles, the weekly Sette, special inserts and general interest and specialised supplements, as well as the website corriere.it. La Gazzetta dello Sport is the leading national sports daily and comprises a structured, integrated platform of information media, including the national daily, the weekly Sportweek, special inserts and specialised supplements and the website gazzetta.it. The Media Italy segment also includes local editions of the two newspapers.

The business area of Vertical publishing products is dedicated to the editing, production and marketing of a structured offer of publishing products. There are 7 main magazines, including weeklies and monthlies and concern the following areas: Women’s (IO Donna and Amica), Home Furnishings and Interior Design (Living and Abitare), Family (Oggi publications) and Men’s & Lifestyle (Style Magazine, Dove). It is also active in the multimedia domain through its websites (Living.corriere.it, Iodonna.it, Amica.it, Oggi.it, Doveviaggi.corriere.it, Style.corriere.it, Doveclub.it and Abitare.it). Publication of Il Mondo and Abitare was suspended in the first quarter of 2014. The latter was relaunched in October 2014. In the first quarter of 2015, two new monthlies were launched under the Oggi name: Oggi Cucino FREE, launched in March, which is a new magazine dedicated to the gluten-free world and Oggi Enigmistica, in January, a new monthly puzzles and games publication. The Vertical and integrated publishing products area also includes the activities of Hotelyo SA, a company operating under the Dove Club name in the on-line travel segment in ‘flash sales’, catalogue and ‘tailor made’ mode, in addition to high-range offers.

Television activities are carried out in Italy, through the company Digicast, which operates in the satellite television broadcasting segment, offering 5 channels on SKY: Lei (channel 127), Dove (channel 412), in addition to the optional channels Caccia (channel 235), Pesca (channel 236) and Lei+1 (channel 129). These channels have their own RCS Group websites which are in turn increasingly integrated with the RCS Group's magazines. The TV offer was expanded on February 26, 2015 with the launch of Gazzetta TV, broadcasting on digital terrestrial channel 59, an initiative developed in collaboration with the De Agostini Group. The Media Italy segment also includes the activities to develop newspapers on digital media as well as classified activities including Trovocasa and, through the company Trovolavoro S.r.l., the market segment dedicated to the search for qualified personnel.

Media Italy’s video offering also includes YouReporter.it, the leading Italian portal in user-generated videos. In addition, in September 2014, the Gazzabet portal was launched in the football and sport on-line betting sector.

Financial Highlights

2nd quarter 2015 2nd quarter 2014 % change First half of 2015 First half of 2014 % change (€/millions) Publishing revenue 72.4 68.7 5.4 145.3 138.3 5.1 Advertising revenue (3) 59.5 63.5 (6.3) 102.7 111.0 (7.5) Other publishing revenue 5.5 5.7 (3.5) 10.7 11.3 (5.3) Total revenue from sales and services (1) (2) 137.4 137.9 (0.4) 258.7 260.6 (0.7) EBITDA BEFORE NON-RECURRING EXPENS E 15.6 15.4 1.3 15.1 14.8 2.0 EBITDA 14.3 15.2 (5.9) 13.6 12.0 13.3

(1) of which add-on product sales: 23.0 17.4 45.5 35.3

(2) Add-on product revenue in the first half of 2015 stood at €45.5 million, €44 million of which was attributable to publishing revenue, €1.3 million to other publishing revenue and €0.2 million to advertising revenue (in the first half of 2014 this revenue totalled €35.3 million, of which €32.9 million related to publishing revenue, €2.2 million relating to other publishing revenue and €0.2 million to advertising revenue). In the second quarter of 2014 add-on product revenue stood at €23 million, €21.9 million of which was attributable to publishing products, €0.9 million to other publishing revenue and €0.2 million to advertising revenue (in the second quarter of 2014 the revenue totalled €17.4 million, of which €15.9 million related to publishing products, €1.3 million related to other publishing revenue and €0.2 million to advertising revenue). (3) Advertising revenue in the first half of 2015 includes €94.8 million generated by the advertising concessionaire, net of the profit retained by the concessionaire (€105.8 million in the first half of 2014).

Market trend

At the end of June 2015, the advertising market decreased by 2.8% compared to the same period of last year. In the print media segment there was an overall downturn of 6.3%, with newspapers down by 8%, characterised by a negative trend in both national business and local business, and magazines were down by 3.4% (Source: Nielsen), further confirmation of the negative trend already reported in March. The on-line segment also fell by 3.1% over the same period of the previous year (Source: Nielsen). The advertising market for general television programmes (Source: Nielsen) was down 3% overall compared to the same period of 2014.

In terms of circulation, in Italy the unfavourable trend in the paper products market continued in 2015, due to the acceleration in sales of digital and multimedia versions and the price increase applied on the main titles in the second half of 2014 and January 2015. Specifically, the distribution of paper copies of general-interest newspapers (with circulation exceeding 90 thousand copies) in 2015 was down by 10% (Source: ADS figures, January-June 2015). Also including digital copies, the market was down 5.3%. From January to June of 2015, sports newspapers showed a decrease of 9.2% (Source: ADS figures, January-June 2015) compared to the same period of 2014 while La Gazzetta dello Sport was down 8.4% in the period. Also including digital copies, the market was down 9.5%, with La Gazzetta dello Sport down 9.3% (Source: ADS figures, January-June 2015).

The average audience of paid-for satellite television channels, down by 18% at June 2015 compared to the same period of last year (Internal source from data processed by Auditel – Average Daily Audience figures calculated in respect of paid-for TV broadcasts), achieved a share of approximately 6.8% of the total Television audience in June 2015, down by around 16% compared to the same period of the previous year (Internal source from data processed by Auditel – Share calculated in respect of paid-for TV broadcasts). The average audience of the digital terrestrial television channels (non-general interest and non-local) grew by 4% over the same period in the previous year (Internal source from data processed by Auditel – figures for average audience per minute).

Segment results

Consolidated revenue of the Media Italy segment amounted to €258.7 million in the first half of 2015, down by €1.9 million (a decrease of 0.7%) compared to the same period of 2014. The decrease was generated by the persistent contraction in advertising revenue, almost offset by the growth in publishing revenue, due to the strong performance of add-on products and increase in the price of paper publications. This effect was generated despite the fall recorded by newsstand sales, mainly brought about by the general drop in consumption and the reference market in particular.

Digital revenue in this area amounted to €36.9 million, accounting for 14.3% of total segment revenue, a slight decrease compared to the same period of 2014 (in which it accounted for 15%). *** 25

Publishing revenue of the Media Italy segment amounted to €145.3 million, up by 5.1% compared to the first half of 2014. In particular, the publishing revenue of Corriere della Sera publications registered an increasing trend compared to the first half of 2014, due to both the strong performance of add-ons launched in recent months and the positive effect of the Corriere della Sera cover price increase to €1.50 in January 2015. These initiatives more than offset the fall in circulation.

The two newspapers retained their circulation leadership in their respective market segments in June 2015. In the first six months of 2015, Corriere della Sera recorded an average of 454 thousand copies distributed (a decrease of 3.8%, or an average of 18 thousand copies - Internal source). Digital copies reached an average of 141 thousand, up 18.5% compared to the same period in 2014. Total distribution of La Gazzetta dello Sport in the first six months of 2015, totalling 245 thousand copies on average (including 44 thousand digital copies on average - Internal Source), was down by 9.3% compared to the same period in 2014: average digital copies (a decrease of 12% compared to the same period of 2014) also fell.

On the whole, digital editions of the two newspapers in the first half of 2015 stood at around 145 thousand active subscriptions, down by 12.3% compared to the same period of 2014. In the first half of 2015, a total of 3 million digital editions were downloaded, an increase of 23.3% compared to the same period of 2014 (Internal Source).

Publishing revenue for the Verticals segment rose by €1.1 million compared to revenue in the first half of 2014 (up 7.4%). The variation is attributable to activities relating to the publication Oggi as a result of the launch of two new monthly products (Oggi Enigmistica and Oggi Cucino Free), the higher number of issues of Nomi di Oggi and the price increase in add-on products, generally higher than the first half of 2014. The success of these initiatives more than offset the fall in circulation recorded solely by the publishing products not sold together with add-on products.

In particular, distribution revenue increased by €1.5 million (up 14%) in the Family area (Oggi publications). While the Women’s and Men’s, Travel and Lifestyle segments registered a reduction of €0.2 million, attributable to the suspension of the publication of Il Mondo at the start of March 2014 (8 editions compared to 0 editions in 2015). Distribution revenue in the Women’s area also decreased by €0.2 million (down 8%). Distribution revenue in the home furnishings and interior design segment rose by €0.2 million compared to the same period of 2014. It should be noted that the Corriere Living supplement changed from free to paid in May, and the first half of 2014 saw the release of just one issue of Abitare before its publication was suspended, then relaunched in October the same year.

***

Advertising revenue for Italy Media amounted to €102.7 million, down by 7.5% on the first half of 2014. Total advertising sales for on-line media reached roughly 22.7% of total advertising revenue for the segment. The advertising revenue of Corriere della Sera publications (including supplements and on-line) decreased overall by 7.2% compared to the first half of 2014, in the presence of a persistently unfavourable market trend. Advertising revenue from La Gazzetta dello Sport publications (including supplements and on-line) reported a decrease of 24.5% with respect to the same period of 2014; net of the effect generated by the World Cup on the previous year, the fall in revenue stands at 10.3%, also adversely impacted by the fall in the reference market. In the period just ended, plans continued to target an increase in the value of the publications in the Media Italy segment and the networks to which they belong. The main activities in the period include the system of initiatives created for the Expo, the simultaneous presence at the CasaCorriere stands and the exhibition organised by Gazzetta dello Sport dedicated to Football Heroes. The #CasaCorriere@Expo stand was created using environmentally friendly materials, and features Expo- themed debates, meetings and insights on a daily basis, with the objective of emphasizing the importance of information as food for thought. To this end, a number of special issues were conceived dedicated to the trade fair themes: the special issue on all themes was released on 1 May “Orizzonti Expo: Porte aperte sul mondo” with 4.5 million copies distributed.

The Gazzetta dello Sport also implemented special initiatives emphasised by the Expo event, from the above- mentioned event dedicated to football heroes, to the success of the special 48-page issue circulated at newsstands with an extraordinary print run of 1 million copies, rich in important testimonies, interesting stories about the competitive spirit and interviews (in which the champions also describe their relationship with food).

Gazzetta Tv’s audience also grew significantly. Gazzetta Tv acquired the exclusive rights to the Copa América 2015, the only major football tournament for national teams in this 2014/2015 season, hence enriching its offer which already includes the rights to Serie A volleyball and basketball. All matches were broadcast live (and were also then repeated), in high definition, and were accompanied by features and insights during the day.

Advertising revenue for the Verticals segment was also affected by the ongoing negative economic environment, and dropped by 5.7% (down €1.2 million) compared to the same period of the previous year. Advertising revenue of paper products fell by €0.7 million (down 3.9%), down in line with the market due to the contraction in the advertising revenue of all segments. The advertising revenue of websites dropped by €0.3 million (down 13.8%) over the same period of 2014, due to the fall in the advertising revenue of all websites, with the exception of the Io Donna website, which recorded an increase of 20% compared to the same period in 2014.

Brand development also continued in the Verticals segment. In particular, in April, the Dove multimedia system undertook a process of transformation, strengthening its focus on topic issues, with special attention to readers’ lifestyles. New features were introduced, a new language, highly evocative images and fresher graphics, enhanced by finer paper.

***

The main digital performance indicators are summarised below. The average monthly unique browsers for the corriere.it site reached 39.7 million in the first six months of 2015 (up 15.5% compared to the same period of 2014), and the average unique browsers on weekdays totalled 2.6 million, up by 11.4% compared to the first six months of 2014. (Source: Adobe SiteCatalyst). The site gazzetta.it recorded 21.4 million average unique browsers per month in the first six months (up 41.7% compared to the first six months of 2014). The average unique browsers on weekdays totalled 1.7 million, up by 44.6% compared to the same period of 2014. (Source: Adobe SiteCatalyst). On the whole, in the first six months of 2015, unduplicated unique browsers totalled 54.9 million per month on average in 2015 for the two websites corriere.it and gazzetta.it, up 20.5% compared to the same period of 2014. (Source: Adobe SiteCatalyst).

On-line videos provided in the first six months of 2015 on corriere.it reached 216.5 million, compared with 156 million in the first half of 2014, underlining the positive effects and driving force of the site’s new graphic layout. A total of 101.6 million on-line videos were provided via gazzetta.it, compared with 78.2 million in the same period of 2014, also benefiting from the website’s new graphics (Source: Adobe SiteCatalyst). As regards the mobile versions of the two websites, in the first six months of 2015 Corriere Mobile recorded 12.9 million unique browsers, with 155% growth compared to that reported in the same period in 2014. Gazzetta Mobile reached 8.7 million unique browsers, up by 157% with respect to the first six months of 2014 (Source: Adobe SiteCatalyst). Active paid subscriptions to Corriere della Sera at the end of June for smartphones numbered more than 20 thousand (Internal source), with almost 1.2 million apps downloaded from the start of the offer (Internal source).

As regards the Verticals segment, in the Women’s area, particular attention was paid to IoDonna.it for which restyling was carried out on April 13 (with a second release expected at the end of July 2015). The relaunch brought the page views monthly from 12 million in January to roughly 24 million in June. Unique browsers rose from 1.3 million in January 2015 to around 2.2 million at the end of June 2015 (Source: Adobe SiteCatalyst). Amica.it recorded a fall from 2.9 million page views on average in June 2014 to an average of 2.2 million in the same month in 2015, despite the decision to suspend supporting investments to focus activities on the IoDonna.it. site.

In the Home Furnishings and Interior Design area, the Living.corriere.it confirmed RCS’s leadership of the on- line market in the luxury sector, maintaining, at the end of June 2015, a monthly average of 5.5 million page views and 400 thousand unique browsers (Source: Adobe SiteCatalyst).

In the Family area, the main Oggi.it website traffic indicators recorded an excellent performance: 48 million average page views per month at the end of June 2015 (in line with the figure in the same period in 2014) and 5.2 million unique browsers (an increase of 27% compared to the same period of 2014) (Source: Adobe SiteCatalyst). It should be pointed out that June 22 saw the launch of a new site release, whose focal points are the new graphic design, the rearrangement of the content, the greater focus on the women’s universe and on the world of food and the central importance of videos.

By contrast, as regards the Men’s, Travel and Lifestyle segment, the website Style.corriere.it, launched on March 25, 2014, disclosed an average of 2.8 million page views and 187 thousand unique browsers at the end of June 2015.

***

Other publishing revenue amounted to €10.7 million in June, down slightly compared to the same period of 2014 (€11.3 million).

As regards Television Activities, the downturn in other publishing attributable to the subscriptions of the channel Caccia e Pesca was offset at overall revenue level by the growth in advertising sales for Lei and Dove. The Lei channel, with an audience in June of 8,584 AMR (Average Minute Rating - Source: Auditel), was down by 17% compared to the same period of 2014. The Dove channel recorded 5,400 AMR in June, down 12% compared to the same period of 2014. Subscribers to Caccia e Pesca totalled 61,100, down roughly 8% compared to the same period of 2014.

***

EBITDA in the first half of 2015 amounted to €13.6 million, up by €1.6 million compared to €12 million in the same period of 2014. Excluding non-recurring expense from the comparison (€1.5 million in 2015 and €2.8 million in 2014), EBITDA would be €15.1 million, up by €0.3 million. The lower advertising revenue is more than offset by the increase in the cover price of the paper publications and the ongoing actions for recovering efficiency. Also excluding from the comparison the costs incurred in the first half of 2015 for the launch of GazzettaTV, and the positive impacts on the first half of 2014 of the World Cup and special projects, EBITDA, excluding the positive effects of the Expo, would record an improvement of €10 million.

Total operating costs in the first half of 2015, including personnel expense and excluding non-recurring expense, were down slightly from those of the previous year. Deducting the effect of the different publishing plan for add-on products from the first half of 2015 and the first half of 2014, as well as the costs incurred for the launch of Gazzetta TV, the reduction in costs would be 8%, due to the decrease in the sales volumes as well as initiatives related to the constant search for efficiency and cost reduction, developed with the goal of countering the unfavourable segment trends and in particular the drop in advertising investments in print media, without, however, impacting the quality of the products and services offered.

The operating performance in the second quarter of 2015 had a similar trend to that of the half-year. Total revenue amounted to €137.4 million, essentially in line with the figure in the same period in 2014. The performance deriving from the difficulties on the advertising market in the print sector and the digital area and the drop in circulation sales were largely offset by the revenue from the increase in the cover price of the publications and the effect of the different timing of the add-on product publishing plan. In the second quarter of 2015, advertising revenue totalled €59.5 million, compared to €63.5 million in the second quarter of 2014 (a decrease of 6.3%). The print media segment and advertising sales via on-line media corriere.it and gazzetta.it saw a continued general decrease; the second quarter of 2014 also saw revenue benefit from the World Cup.

Publishing revenue totalled €72.4 million in the second quarter of 2015, up by 5.4% compared to the same period of 2014. The effect of the increase in the cover price of the publications and the revenue deriving from add-on products which benefitted from the different timing of the publishing plan, more than offset the fall in circulation.

Other publishing revenue amounted to €5.5 million in the second quarter of 2015, essentially in line with the figure in the same period of 2014.

The EBITDA for the second quarter came to €14.3 million, down by €0.9 million with respect to the same period in 2014. EBITDA before non-recurring income and expense was €15.6 million in the second quarter, compared to €15.4 million in the second quarter of 2014. The essential stability recorded, nonetheless reflects, in the comparison with the second quarter of 2014, the absence of major sporting events, in addition to the negative effect of Gazzetta TV’s recent start-up phase, with lower EBITDA before non-recurring expense due to the costs incurred in implementing the launch (down €2.7 million).

MEDIA SPAIN

Segment profile

Unidad Editorial is one of the main players in the Iberian publishing market where it operates with several forms of media and brands. It operates in the daily and periodic press, in book publishing, in radio broadcasting, in event and conference organisation (also in Portugal) and in distribution, with products in its own portfolio and numerous other national and international products, through its own distribution company. It also owns, through Veo TV, a multiplex for national digital television transmission.

As regards the product portfolio, the Group publishes El Mundo, Spain's number two daily newspaper in terms of circulation, and is leader in sports news, with the daily paper Marca, and in business news, with the daily newspaper Expansión. It maintains a web presence through sites for each of its publications, elmundo.es, marca.com and expansión.com. It is active in the magazines market with the women’s magazine Telva and several specialist magazines (Marca Motor, Actualidad Económica, Historia and Siete Leguas). It operates in book publishing with the publishing houses La Esfera de los Libros and A Esfera dos Livros (Portugal). It operates in radio with Radio Marca, the top national sports radio station. In digital TV, it broadcasts two television channels: Canal 13 and Discovery Max.

Consolidated financial highlights

2nd quarter 2015 2nd quarter 2014 % change 1st half 2015 1st half 2014 % change (€/millions) Publishing revenue 35.4 41.2 (14.1) 69.7 81.0 (14.0) Advertising revenue 41.5 44.3 (6.3) 72.1 75.2 (4.1) Other publishing revenue 10.2 11.4 (10.5) 18.4 20.4 (9.8) Total revenue from sales and services (1) 87.1 96.9 (10.1) 160.2 176.6 (9.3)

EBITDA BEFORE NON-RECURRING EXPENSE 10.2 11.1 (8.1) 7.8 4.1 90.2 EBITDA 5.2 4.0 30.0 2.7 (16.6) >100

(1) of which add-on product sales: 1.0 0.4 2.3 1.3 (1) Revenue from add-ons at in the first half of 2015 stood at €2.3 million, €1.9 million of which was attributable to publishing revenue and €0.4 million to other revenue (in the first half of 2014 the total was €1.3 million, of which €1 million related to publishing revenue and €0.3 million to other revenue). Revenue from add-ons in the second quarter of 2015 stood at €1 million, €0.8 million of which was attributable to publishing revenue and €0.2 million to other revenue (in the second quarter of 2014 the total was €0.4 million, of which €0.3 million related to publishing revenue and €0.1 million to other revenue).

Market trend

In June 2015, there was a 7.5% increase in the gross advertising sales market compared to the same period of 2014 (Source: i2p, Arce Media). The newspapers market recorded growth of 1.9%, driven by a strong performance by local newspapers, while national newspapers saw a fall of 4.3%. Supplements rose by 1.4%, while the on-line segment showed 12.1% growth compared to the same period of 2014. The sole exception was magazines, which fell by 2.2%.

In June 2015, the sales performance on the newspapers market declined compared to the same period of 2014. Circulation figures for Spain until June (Source: OJD) regarding the general interest newspaper market (those with a circulation exceeding 80 thousand copies), show an overall reduction of 11.2%. The fall in the circulation of business newspapers was 10.5% in the same period. Daily sports newspapers saw the same trend, down 11.3%.

Segment results

Consolidated revenue totalled €160.2 million in the first half of 2015, down by €16.4 million (a decrease of 9.3%) over the same period of 2014, also due to the closure of two television channels that were still active in 30

the first quarter of 2014. In fact, as regards the television activities of the Unidad Editorial Group, carried out via Veo Television S.A., the regulatory measures described in the “Other information” section led to the blocking of the transmission of two of the four channels starting from May 2014. Revenue was also impacted by both the reduction in activities included within the marketing scope of advertising sales on behalf of third party publishers, and the change of promotional policy for El Mundo. Net of these elements, the downturn would amount to €10.2 million (down 6%). Digital revenue in the segment in June 2015 accounted for 16.4% of the segment’s total revenue, up 3% with respect to the same period in 2014.

Advertising revenue, amounting to €72.1 million, decreased by 4.1% compared to the same period of 2014; however, net of the reduction in the perimeter of advertising sales activities on behalf of third parties effective from 2015, and net of the sporting events which took place in the first half of 2014, advertising revenue would register a decrease of 0.9%. Total advertising sales for on-line media reached 29% of total net advertising revenue. Publishing revenue amounted to €69.7 million, down by €11.3 million due to a general reduction in circulation.

Other revenue, amounting to €18.4 million, decreased by €2 million compared to the same period in 2014, due exclusively to the revenue in the television area (down €2.6 million) due to the above-mentioned closure of two TV channels. On a like-for-like basis, revenue would record growth of €0.6 million.

El Mundo, with an average daily circulation of roughly 159 thousand copies, including digital copies (down 13.4% compared to the same period of last year), confirmed its position as the number two daily national newspaper. The circulation of sports daily Marca (average daily circulation of roughly 161 thousand copies, including digital copies), leader in the sporting segment, also fell by 13.4% over the same period in the previous year. The daily newspaper Expansión (average daily circulation of roughly 40 thousand copies including digital copies) decreased by 4.8% with respect to the same period of 2014.

Sales of add-on products increased by €1 million compared to the same period of 2014.

Among on-line activities, the average monthly unique browsers (source: Omniture) of elmundo.es reached 37.6 million (up 16.3% compared to the same period of 2014), and average weekly unique browsers amounted to 2.6 million (up 21.2% compared to the previous year). At the end of June 2015, marca.com reached a monthly average of 40.8 million unique browsers (up 6.2% compared to the same period of the previous year), and average weekly unique browsers amounted to 4.3 million (up 5.9% compared to the previous year). The average monthly unique browsers of expansión.com reached 7.9 million unique users, up by 29.9% compared to the same period in the previous year. Average weekly unique browsers totalled 0.5 million (up 29.2% compared to last year). It should be noted the website expansion.com went on-line with a new graphic appearance in March, and the early feedback from users is positive.

In order to accelerate the digital transformation process of the main publication, the management of El Mundo was assigned to David Jiménez on April 30, 2015.

With Orbyt, Unidad Editorial reached 81 thousand subscribers in June, down compared to December as a result of subscriptions linked to sales agreements which have expired. Around 139 thousand applications have been downloaded for iPhones and roughly 287 thousand applications downloaded for iPads since the launch of Orbyt.

Unidad Editorial closed the first half of 2015 with a positive EBITDA of €2.7 million, compared to a negative €16.6 million in the same period in 2014, thus marking an improvement of €19.3 million. Non-recurring income and expense in in the first half of totalled €5.1 million (€20.7 million in the same period of 2014).

EBITDA before non-recurring expense and income would amount to a positive €7.8 million, marking an improvement of €3.7 million over EBITDA before non-recurring expense in the first half of 2014 (an increase of €4.6 million by neutralising the negative impact of the closure of the two television channels): the decrease in circulation was more than offset by continuous cost reduction and efficiency recovery initiatives and the growth in digital revenue. 31

Revenue amounted to €87.1 million in the second quarter, a decrease of €9.8 million. Publishing revenue dropped by €5.8 million (down 14.1%) mainly due to lower circulation. Advertising sales decreased by €2.8 million compared to the same period of the previous year. On a like-for-like basis, advertising revenue would essentially be in line with the same period of the previous year. Other revenue was down (down €1.2 million) mainly as a result of the closure of two television channels.

EBITDA, amounting to €5.2 million, is up €1.2 million over the previous year; EBITDA before non-recurring expense and income was €10.2 million in the second quarter, down by €0.9 million compared to last year. The second quarter of 2014 benefitted from the effect of the World Cup; net of this event, EBITDA before non- recurring income and expense would record an improvement of €0.7 million.

BOOKS

Segment profile

The Books segment comprises the RCS Group’s activities in the book publishing segment. It operates in Italy with the brands Rizzoli, BUR, Bompiani, Fabbri and Lizard, and with publishing houses Marsilio (also with the Sonzogno brand) and Adelphi. It also holds stakes in Edigita (in the digital distribution market) and in Mach2 (in the large-scale retail market). It is present in the United States with Rizzoli International Publications and the brands Rizzoli, Universe, HLLA and Welcome Books. In Italy it is active in textbook publishing (with Fabbri, Etas, La Nuova Italia, Sansoni, Tramontana, Oxford University Press, Hachette, Edinumen, Calderini, Edagricole, Edizioni del Quadrifoglio and Markes).

Financial highlights

2nd quarter 2015 (1) 2nd quarter 2014 % change 1st half 2015 (1) 1st half 2014 % change (€/millions) Fiction and Non-Fiction - Italy 26.3 25.2 4.4 47.5 44.6 6.5 Education 15.8 15.8 (0.0) 18.4 18.6 (1.1) Rizzoli Int. Publications 5.6 4.8 16.7 10.7 8.9 20.2 Other revenue 0.0 (0.1) - - -

Total revenue from sales and services 47.7 45.7 4.4 76.6 72.1 6.2 EBITDA BEFORE NON-RECURRING EXPENSE 0.4 (1.7) n.s. (6.0) (9.9) 39.4 EBITDA 0.0 (2.3) n.s. (6.9) (11.0) 37.3 (1) The Casa Editrice La Tribuna business unit and trademark were sold on March 1, 2014. This change led in total to lower consolidated revenue for €0.3 million and an improvement in EBITDA of €0.4 million at March 31, 2015.

Revenue for the first half of 2015 totalled €76.6 million, up by €4.5 million (up 6.2%) compared to the same period of 2014, (up €4.8 million if we exclude from the comparison the assets of the La Tribuna trademark sold in March 2014). The macroeconomic context is still characterised by a contraction in the books market in Italy (down 2.7%), while the market recorded growth of 4% in the United States. In this context, the Group recorded a positive revenue performance in Fiction and Non-Fiction - Italy (up 6.5%) and from Rizzoli International Publications (up 20.2%) compared to the first half of 2014. Revenue in the Education division recorded a decrease of 1.1%. Net of the revenue of assets sold relating to the La Tribuna trademark, the revenue of the Education division would be essentially stable. For more detailed comments on revenue in the first half of 2015, please refer to the paragraphs below.

EBITDA before non-recurring expense for the period was a loss of €6 million, improving by €3.9 million compared to the same period of 2014. This increase is due to both the higher sales of the publishing products of Adelphi and Marsilio, and the growth in digital e-book products plus the greater revenue deriving from the sales of copyrights and the launch of special projects in relation to Illustrated Books Italy. A positive contribution was also made by the EBITDA before non-recurring expense of the Education segment and of Rizzoli International Publications, up €1.7 million and €0.3 million respectively. In particular, greater investments of €1.9 million were recorded in the half year compared to the same period in 2014, incurred for the conception and production of school non-fiction books, linked to the recent development in publishing products and €1.6 million incurred for the re-opening of the historic New York bookstore at a new address.

Revenue in the second quarter of 2015 totalled €47.7 million, an increase of €2 million compared to the second quarter of 2014. In particular, revenue from Fiction and Non-Fiction - Italy rose by €1.1 million due to the strong performance of books published by Marsilio and Adelphi, of digital revenue and the success of special projects relating to Illustrated Books Italy. The revenue of Rizzoli International Publications rose by €0.8 million as a result of the better performance of the catalogue and the benefit generated by the dollar exchange rate. Revenue in the Education segment in the second quarter of 2015 was stable with respect to the same period in 2014.

The EBITDA before non-recurring expense in the second quarter of 2015, a profit €0.4 million, rose by €2.1 million mainly due to the effect of higher revenue in the period and cost reduction actions. This increase was also essentially confirmed by EBITDA after non-recurring expense, up by €2.3 million.

Fiction and Non-Fiction - Italy

Market trend

According to the GFK Institute, in the first half of 2015 the Italian book market contracted compared to the same period of 2014, by 2.7% in terms of revenue and by 4.9% in terms of copies.

With reference to sales channels, the e-commerce registered growth of 3.1%, confirming its market share in the first quarter of 2015 at 15.4%. Large-Scale Retail lost 8.9% and had a market share of 13.9%, and bookshops (including bookshop chains and independent bookshops) fell by 2.6%, with a market share of 70.8%.

As regards the various market segments, the Children’s Books segment was essentially unchanged (down 0.5%). Fiction recorded a similar result (down 0.5%), as a result of differing trends in the Italian Fiction market (up 9.6%) and the Foreign Fiction market (down 5.8%). The Non-Fiction segment recorded a decrease of 5.2%, with a drop in non-fiction (down 4.4%) as well as Fiction and Non-Fiction, although to a more marked degree (down 6.4%).

In the first half of 2015, the e-book market recorded 10% growth in revenue compared to the same period of the previous year. E-books’ share of the total revenue of the books market (paper + e-books) was confirmed at around 5% (Aie 2015 data), and for the Group, accounts for 5.8% of total revenue of fiction and non-fiction books, an increase of around 1% compared to the first quarter of 2015 (internal analysis on GFK source). In this context, RCS Libri confirmed its growth position as the second largest group in the market, with a market share of 12.2% in terms of revenue. Among the top four publishing groups, the RCS Group was the only one to record a positive figure, with an increase of 2.7%.

Segment results

Despite the fact the reference market is still characterised by an unfavourable trend as outlined above, Fiction and Non-Fiction - Italy revenue recorded an increase of 6.5% compared to the first half of 2014, with the publishing revenue of publishing houses generally stable and growth for digital revenue, revenue from the transfer of rights and special projects, no book revenue and publishing revenue of third party publishers and of Marsilio and Adelphi.

In the first six months of 2015, the sell-outs of Bompiani and Rizzoli BUR recorded significant growth in terms of value of +10.5% and +9.8%, respectively. The exceptional result of the publishing house Fabbri should be underlined, which, due to the launch of various successful highlights in the second quarter, ensured growth in revenue of 26.6%. Rizzoli instead saw a decrease of 18.8% in revenue due to a comparison with first half of 2014 which was rich with bestsellers, written by authors like Friedman, Vitali, Severgnini, Pansa and Tartt.

For a large part of the first half of 2015, Rizzoli retained its position in the standings of Foreign Fiction, Non- Fiction and Fiction & Non-Fiction, due to the staying power of titles already successful in 2014 like Colpa delle stelle by John Green and, among Non-Fiction work, I tre giorni di Pompei, the book by Alberto Angela and Dire, fare, brasare by Carlo Cracco.

Worthy of note in particular is the brilliant performance of the Tascabili RCS promotional campaign, which brought the value share of Rizzoli paperbacks to 10.7% (up 14% compared to the first half of 2014) in a reference market which lost 2.1%.

Education

Market trend

The most recent Databank forecasts estimate an essentially stable market performance, with a value of around €560 million. The impetus generated by the lifting of the block on adoptions last year fell away immediately due to both the recourse to the purchase of used books and the fall in the average cover price of new releases, linked to the ministerial decision to reduce the spending caps for household purchases of textbooks by 10%. During the period, the competitive context remained essentially unchanged with respect to the end of 2014.

The overall offering of school works and textbooks stood at around 19 thousand titles, of which two thirds concentrated on upper secondary schools, down around 2% compared to the previous year. The adoption changes in the period, which represent the real window of commercial opportunity on which to focus the network’s promotional activities, excluding primary schools, fell to 15% compared to 2014, returning to a theoretically normal performance.

Segment results

This publishing house completed the production of its textbooks for the 2015/2016 academic year in times consistent with the adoption promotional campaign, presenting a complete offering of both basic texts and all the ancillary and support material. The number of new releases and new editions, slightly lower than last year, standing at around fifty new titles and works targeted at all levels of education, also including initiatives aimed at the so-called extracurricular sector. Digital open book format and a multimedia and interactive version of the course is available for each title, useful for increasingly more open and inclusive learning. The multimedia and interactive course functions are provided within a dedicated platform named “MyStudio”, the area of rcseducation.it, which has been specially designed and created for digital learning. Based on the statistics on the volumes of adoptions from the start of the cycle drawn up by the Associazione Editori, even though not definitive, the general performance of RCS Education in 2015 bucked the trend from previous years due to the excellent performance in primary schools (up 16%) and strong staying power in the lower and upper secondary school segment. In relation to the individual trademarks, Fabbri balanced the success in primary schools against the decrease, nonetheless forecast, in lower secondary schools. La Nuova Italia performed positively in upper secondary schools. As regards third party publishers distributed, with specific reference to texts for teaching English, French and Spanish, the overall performance recorded growth over the first half of 2014, signalled in particular, in lower secondary schools, by Oxford University Press branded products.

The school market is characterised by a highly seasonal nature, with heavy concentration of revenue in the last four months of the year. Despite not being particularly significant for the annual trend due to the seasonal nature, revenue was essentially stable in the first half compared to the same period of the previous year, excluding the effect of the transfer of La Tribuna publishing house.

Rizzoli International Publications

Market trend

The US publishing market segment in which Rizzoli International Publications primarily operates (Adult Non- Fiction with a cover price of over USD50) recorded roughly a 4% increase in copies sold in bookstores at the end of June 2015 (excluding e-books, source: Nielsen Bookscan).

Segment results

The company recorded an increase in consolidated revenue of more than 20%, due largely to the appreciation of the dollar against the euro and partly the rise in sales, which offset the lower revenue generated by the temporary closure of the historic Rizzoli bookstore in New York at the end of April 2014. In particular, excluding the effects of the above-mentioned closure, total net revenue in dollars in the first half of 2015 rose by around 8% compared to the same period in 2014. This increase favoured by the positive performance of the US market is due to both the trend in the sales of the publishing house’s products and the catalogue of Welcome titles acquired in the second half of 2014.

Lastly, on the retail front (Rizzoli Bookstore), the historic New York bookstore was re-opened in July, in its new location.

ADVERTISING AND EVENTS

Segment profile

The sector comprises both the Advertising and Other Events area including the Communication Solutions division, an advertising concessionaire of the RCS Group and RCS Live, and the Sports Events area including the activities of RCS Sport S.p.A., of RCS Sports and Events DMCC (a company with registered office in Dubai, active in organising Sporting Events in the UAE) and, starting from December 2014, Società Sportiva Dilettantistica RCS Active Team– SSD RCS AT a.r.l., active in the development and broadcasting of sporting activities. The interest in the IGPDecaux Group (leader in the outdoor advertising sector, jointly controlled with other shareholders), classified as an asset held for sale, was transferred on June 30, 2015. As regards the Communication Solutions division, please recall that the revenue of the Advertising division does not include the advertising sales of Media Spain and the Childhood Segment of Corporate Functions and Other Activities, in which the publishers work directly with third-party concessionaires. Local advertising sales for customers in Tuscany, Emilia-Romagna, Trentino Alto Adige, Veneto, Campania, Lazio and the provinces of Brescia and Bergamo are assigned to sub-concessionaires. The division includes advertising sales on the websites Kelkoo and Linkiesta.it and domestic print advertising sales for the Monrif Group daily newspapers - QN, Il Giorno, Il Resto del Carlino and La Nazione - (“Poligrafici Editoriale”). The Communication Solutions division is also the concessionaire for domestic print and on-line advertising sales for some publications distributed in southern Italy. The agreements were entered into with the following publishers: Società Editrice Sud or SES, which publishes Gazzetta del Sud, Gazzetta Avvisi (Friday insert also on-line), Noi Magazine (Thursday school insert) and Gazzetta del Sud.it; Domenico Sanfilippo Editore, which publishes La Sicilia and La Sicilia.it; Editrice del Sud Edisud, the publisher of Gazzetta del Mezzogiorno and Gazzetta del Mezzogiorno.it; and Giornale di Sicilia Editoriale Poligrafica, which publishes Giornale di Sicilia and Giornale di Sicilia.it. On February 1 last year, the RCS Group entered into a print and on-line advertising sales agreement with the publisher Itedi S.p.A. for La Stampa, its supplements and La Stampa.it. The publications Il secolo XIX and Il Secolo XIX.it were added on January 1 this year. The RCS Live events agency is known for its direct, multimedia and efficient approach to the design, planning and execution of business to consumer, business to business and corporate events. In the Sports Events area, RCS Sport S.p.A. organises and manages extremely high profile events for a variety of sports by providing a full and customised range of services as well as advertising sales activities for third parties. RCS Sport S.p.A. is a Sport and Media company, one of the most important players in the Italian and international scene.

Financial highlights

2nd quarter 2015 2nd quarter 2014 % change 1st half 2015 1st half 2014 % change (€/millions) Advertising and sundry events (1) 79.7 87.3 (8.7) 138.0 149.9 (7.9) - of which revenue from RCS publishers 64.8 72.5 112.7 126.3 - of which revenue from third party publishers 12.6 13.9 22.1 21.9 Sports events (2) 31.0 32.8 (5.5) 40.6 44.1 (7.9) Total revenue from sales and services (3) 110.7 120.1 (7.8) 178.6 194.0 (7.9) EBITDA BEFORE NON-RECURRING EXPENS E 8.7 5.8 50.0 4.4 1.2 n.s. EBITDA 8.4 5.6 50.0 3.9 0.8 n.s. (1) In the first half of 2015, they include advertising revenue of €134.8 million (€148.2 million at June 30, 2014) and other publishing revenue of €3.2 million (€1.7 million in the first half of 2014). (2) In the first half of 2015, they include advertising revenue of €15.7 million (€16.5 million at June 30, 2014) and other publishing revenue of €24.9 million (€27.6 million in the first half of 2014). (3) Group advertising revenue totalling €236 million at June 31, 2015 also includes revenue earned directly by the publishers, of €101.1 million (of which €71.3 million by Media Spain, €15.7 million by Sports Events, €7.9 million by Media Italy, €6.5 million by Corporate Functions and Other Activities and €0.3 million in intragroup eliminations. Group advertising revenue totalling €250.8 million in the first half of 2014 also includes revenue earned directly by the publishers, of €102.6 million (of which €74.5 million by Media Spain, €16.5 million by Sports Events, €5.2 million by -Media Italy, €6.8 million by Corporate Functions and Other Activities and €0.4 million in intragroup eliminations.

Market trend

The advertising market in Italy (Source: Nielsen) closed the first six months of the current year down 2.8% over the previous year. Sales decreased in general across all advertising media with the exception of Radio (up 7.5%) and billboards (up 4.2%). The newspapers segment was down by 8%, magazines 3.4%, internet 3.1% and, lastly, TV was down 3%. The print advertising investment segments that have suffered the most are fashion, automobiles and telecommunications.

Segment results

Total revenue for the segment in the first six months of 2015 stood at €178.6 million, down €15.4 million over the first half of 2015 (down 7.9%). The change was due to the decrease in Sports Events revenue (down €3.5 million) and in Advertising and Sundry Events revenue (down €11.9 million).

In particular, Advertising and Sundry Events revenue, amounting to €138 million and the afore-mentioned decrease of €11.9 million compared to the first half of 2014, is essentially attributable to the fall in the advertising sales on RCS publications, highlighted by the Communication Solutions division for a total of €13.6 million (down 10.8%) and relating mainly to Newspapers (€8.8 million) and on-line (€3.9 million). In particular, the performance of advertising sales on sports newspapers was adversely impacted by the comparison with a first half of 2014 characterised by major sports events. Advertising revenue from Magazines remained essentially stable.

This trend in advertising sales realised with third party publishers remained essentially stable at €22.1 million also due to the effect of the new advertising concession acquired in the first quarter, relating to Il Secolo XIX, for print and on-line sales.

Revenue from Sports Events in the half year stood at €40.6 million, a decrease of €3.5 million compared to the first half of 2014. In particular, Sports Events advertising revenue decreased by €0.7 million, due to the activities relating to advertising sales on behalf of third parties like FC Internazionale (down €2.2 million), FIGC (down €0.4 million), LEGA B and FIP (down €0.6 million), partly offset by increased advertising revenue associated with the Giro d’Italia (up €0.9 million; growth of 11%), the Dubai Tour (up €0.9 million), the Color Run (up €0.4 million) and spring classics (up €0.3 million). Other revenue fell by €2.8 million: the start of the Giro d’Italia 2015 in Italy as opposed to the overseas start in 2014 involved around €2 million less in income from local entities, but a higher margin; in 2015, the Final Four of Eurolega (down €0.8 million) was also missing, organised in May 2014.

EBITDA for the area was a positive €3.9 million, marking an improvement of €3.1 million compared to the previous year. This trend is also confirmed by EBITDA before non-recurring expense.

In particular, the EBITDA before non-recurring expense of Sports Events in the half year highlighted growth of €1.9 million over the corresponding period in 2014, also due to the reasons described above. On the other hand, the fall in revenue from advertising sales activities on behalf of third parties, being characterised by extremely low profit margins, did not adversely impact EBITDA in the first half of 2015. The EBITDA before non-recurring expense of the Advertising and Sundry Events segment improved by €1.3 million over the corresponding period in the previous year, essentially due to cost efficiencies. Non-recurring expense in the first half of 2015 related, for €0.5 million to Advertising and Events (€0.4 million in the first half of 2014 relating to Sports Events).

Total revenue in the sector for the second quarter of 2015 fell by €9.4 million compared to the same period of the previous year. The Advertising and Sundry Events segment recorded a decrease of €7.6 million, essentially attributable to advertising in RCS newspapers, only partly offset by the increase in the sundry revenue of direct marketing activities acquired from the Direct division of Corporate Functions and Other Activities. Revenue for the period of Sports Events totalled €31 million, down €1.8 million compared to 2014; in particular, advertising revenue was essentially unchanged, while the other types of revenue saw a drop for the above reasons. 38

EBITDA for the second quarter of 2015 was a positive €8.4 million, an improvement of €2.8 million compared to the same period of the previous year. The EBITDA of Sports Events highlighted growth of €2 million over the corresponding period in 2014 (up €1.8 million excluding non-recurring expense). Advertising and Sundry Events recorded an increase of €0.8 million in EBITDA (up €1.1 million before non-recurring expense), essentially due to the cost reduction actions.

CORPORATE FUNCTIONS AND OTHER ACTIVITIES

Segment profile

This area includes the provision of services for other Group companies (Corporate Functions) as well as publishing activities targeted at families with children from zero to three years old (the Childhood Verticals), including the publications Insieme and Io e il mio Bambino, the controlled distribution of boxed sets containing assorted products for mothers, the organisation of events and fairs (Bimbinfiera), the offer of digital products (quimamme.it website, publication websites and web TV) and e-commerce functions. Childhood Verticals (Sfera) are the market leader in Italy, Spain and Mexico and are present in China with business models similar to the Italian one. The segment also includes other digital activities, comprising direct marketing services, subscriptions and mail order sales managed by the Direct division, as well as digital development activities carried out by RCS Digital Ventures by entering into partnership/licensing agreements or by acquiring interests in companies, including start-ups, with innovative digital product portfolios that are deemed strategic. The area also incorporates m-dis Distribuzione Media S.p.A., the equity-accounted company dedicated to the newsstand distribution of the Group's publications and those of third party publishers, and the Finelco Group, which has been classified as an asset held for sale. The Fondazione Corriere della Sera should also be pointed out, which organises and keeps the archives of the Corriere della Sera, and RCS Group magazines and publishing houses. The Foundation increases the archive and cultural value of its assets through intense activities involving debates, conferences, publications and photographic and documentary exhibitions. Lastly, the Fondazione Candido Cannavò per lo sport, created following the death of the esteemed journalist and writer, was established in order to operate in the field of solidarity, social development and sport, in the tradition of the work and message of Candido Cannavò.

Financial highlights

2nd quarter 2015 2nd quarter 2014 % change 1st half 2015 1st half 2014 % change (€/millions) Corporate Functions 9.6 9.3 3.2 19.1 18.4 3.8 Childhood Verticals 8.1 8.9 (9.0) 13.6 15.0 (9.3) Other digital activities 1.9 2.6 (26.9) 4.2 4.4 (4.5)

Total revenue from sales and services 19.6 20.8 (5.8) 36.9 37.8 (2.4) EBITDA BEFORE NON-RECURRING EXPENSE (7.5) (5.8) 29.3 (16.2) (14.4) (12.5) EBITDA (7.5) (5.8) 29.3 (16.3) (14.4) (13.2)

Market trend

Corporate Functions and Other Digital Activities recorded activities targeted primarily at the RCS Group while the reference Italian advertising market for Childhood Verticals concerns Magazines, down by 3.4% in Italy in the first half of 2015 compared to the previous year (Source: Nielsen), in a domestic market that is down on the whole by 2.8%, while the internet market registered a drop of 3.1% (Source Nielsen).

The current economic crisis has also resulted in a continuous decrease in births both in Italy and Spain in the 2008-2014 period (Source: Istat, INE-Instituto Nacional de Estadística).

Segment results

Revenue, amounting to €36.9 million, decreased by €0.9 million compared to the previous year. The growth in revenue of Corporate Functions only partially offset the reduction in the revenue of Digital activities and Childhood Verticals.

The Corporate Functions segment rose by €0.7 million, due to recharges of centralised services by other companies/segments of the Group. It should be recalled that IT, administration and tax, finance and treasury, 40

procurement, legal and corporate affairs, human resources, facility management and activities connected with digital development are charged back.

The revenue of Childhood Verticals totalled €13.6 million in the half year, down by 9.3% (down €1.4 million compared to the same period in 2014), due mainly to the lower revenue of Chinese activities, only partly offset by the revenue generated in Spain and Mexico, up by 16.7% and 14.3%, respectively, while Italy recorded a slight decrease again in traditional activities (print and boxed sets). As regards the e-commerce business, Italy and Spain recorded, on the whole, an increase in revenue of more than 50% compared to the revenue in the first half of 2014. Furthermore, a new company was incorporated in July, in collaboration with Planet Cards France, for the on-line marketing in Italy of photographic and personalised paper products; similarly, an identical activity had been launched in a joint venture in Spain at the end of 2014, with encouraging results. In terms of geographical diversification, the digital offer of publishing content of Childhood Verticals continued in France: this activity, started just over a year ago, is continuously achieving better results, both as regards revenue and in terms of customer data collected, registering positive margins from the last few months of 2014.

Revenue from other digital activities fell €0.2 million with respect to the same period in the previous year. The positive contribution from RCS Digital Ventures, up €0.7 million, with the revenue generated through the site Made.com (an innovative Home Furnishings and Interior Design e-commerce model) did not offset the fall in the activities of the Direct sector, down due to lower mail-order sales of the paper add-on products of Corriere della Sera and the effects of the suspension, in April, of the subscription management activities of the Group brands (down €0.7 million).

EBITDA before non-recurring expense is a loss of €16.2 million (loss of €14.4 million in the first half of 2014). The variation of €1.8 million compared to the same period of 2014 is due to higher rental expenses on the Solferino segment (it should be noted that the completion of the transfer of Block 1 - Corriere della Sera’s historical office building - of the Via San Marco and Via Solferino property complex took place on 6 March 2014, with a positive effect on financial expense), as well as the impact of lower revenue of the Direct Division and Childhood Verticals in China.

Revenue amounted to €19.6 million in the second quarter of 2015, down by €1.2 million compared to the previous year. This contraction is attributable to Childhood Verticals, due to the lower revenue of the Chinese subsidiary, only partially offset by the strong performance recorded in other countries, as well as lower revenue of the Direct division, also due to the suspension, in April, of the subscription management activities of the Group’s brands.

EBITDA in the quarter was a loss of €7.5 million (loss of €5.8 million in the second quarter of 2014). The change of €1.7 million compared to the same period of 2014 is attributable to the lower profits of Corporate Functions and the negative impact of the lower revenue of the Direct division and of Childhood Verticals, adversely affected, among other things, by the lower profits from Chinese activities.

m-dis DISTRIBUZIONE MEDIA m-dis Distribuzione Media S.p.A. distributes publishing and non-publishing products (phone cards and on-line mobile phone top-ups) to the newsstand channel and to other authorised resellers. The company's portfolio includes not only the products of its shareholders (RCS, De Agostini, Hearst Magazines) but also those of numerous other publishers, such as La Stampa, Il Sole 24 Ore and Il Fatto Quotidiano. The company relies on the subsidiaries MDM Milano Distribuzione Media for distribution in Milan and the surrounding Milan area, to-dis S.r.l. for distribution in the Turin area, Pieroni Distribuzione for national distribution of specialised publishing products and the associate Liguria Press S.r.l. (formerly ge-dis S.r.l.) for distribution in the Genoa area. m-dis Distribuzione Media S.p.A. also has investments in Trento Press Service S.r.l. (30.4%), actively carrying out distribution in Trento and the province of Trento, and in Mach2 Press S.r.l. (40%), a company specialised in the distribution of publishing products in the large-scale retail channel.

In the first half of 2015, consolidated revenue totalled €178.8 million (€194.5 million in the same period of last year), while consolidated EBITDA was roughly €3.1 million, up by approximately €0.9 million with respect to the previous year. The €15.7 million decrease in consolidated revenue compared to the first half of 2014 is mainly due to the decrease in revenue from the non-publishing segment (phone cards and online mobile phone top-ups), equal to around 9%, accompanied by the fall in the publishing revenue registered by picture card products. Consolidated profit for the period amounted to around €2.2 million, up by roughly €1.3 million over last year. The volume distributed (the term used to mean the number of copies sold to the end customer, measured at the cover price) registered a decrease of roughly 2.2% in the second quarter of 2015 compared with the same period in the previous year, attributable to the delay in the Picture Cards segment which, in the second quarter of 2014, had benefited from the launch of the collection linked to the European football championship, partly offset by the strong performance of add-on products. Newspapers registered a slight decrease, while the Magazines and Partworks segments were essentially stable.

RELATED PARTY TRANSACTIONS

Please refer to note 12 of the notes for an analysis of related party transactions.

SIGNIFICANT EVENTS DURING THE FIRST HALF OF THE YEAR

 On February 11, 2015, the RCS Group announced a new organisational set-up: the Group’s Advertising Division was transformed into RCS Communication Solutions, which will work alongside the newly founded NuMix Agency. The primary objective of RCS Communication Solutions is to expand the product range to maximise advertising revenue by offering new services, including through partnerships and new acquisitions. NuMix Agency will be specialised in data, content, events and innovative platforms, and will absorb other units with years of experience: Connecto, the leading direct marketing operator with a database of more than 10 million names, RCS Live, focused on the conceptualisation and execution of B2B and B2C corporate events in Italy and abroad, including the large RCS Group events, and InProject, the unit devoted to tailor-made multimedia projects for businesses. NuMix Agency has been operating since March 2015.

 On February 26, 2015, La Gazzetta dello Sport presented its television version GazzettaTv on digital terrestrial channel 59, directed by Andrea Monti. GazzettaTv is produced by Digital Factory, a company in which Digicast holds a 60% equity investment and in which DeA 59, of the De Agostini group, which has the broadcasting authorisation for this channel, holds a 40% equity investment. Digital Factory’s Chairman is Pierfrancesco Gherardi, Digital De Agostini managing director, and the CEO is Francesco Carione, director of the RCS MediaGroup Gazzetta division and the RCS MediaGroup S.p.A. television segment.

 On April 23, 2015, RCS MediaGroup’s ordinary Shareholders’ Meeting took place, chaired by Angelo Provasoli, and the Shareholders: - approved the separate financial statements as at and for the year ended December 31, 2014, which reported a net loss for the year of €117,570,193.00, carried forward; - expressed a favourable vote on Section 1 of the Remuneration Report drafted by the Board of Directors in accordance with the provisions of Art. 123-ter of Italian Legislative Decree no. 58/1998 and the associated implementing provisions issued by Consob; - approved the Board of Directors’ proposal for the disposal of treasury shares based on the prior revocation of the previous authorisation. Based on the authorisation, the Board of Directors, pursuant to and in accordance with Art. 2357-ter of the Italian Civil Code, may dispose, wholly or partly, in one or more occasions, of treasury shares already in the portfolio at today’s date, or require them to be subsequently acquired within eighteen months from the resolution date, in particular, via the following alternative methods: (i) through cash transactions, at a value of no lower than 10% of the reference price recorded on the Mercato Telematico Azionario (Electronic Equities Market) organised and managed by Borsa Italiana S.p.A. in the stock market trading session prior to each individual transaction through stock market sales, in blocks, via public offering, or (ii) through trade, exchange or transfer transactions, or another act of disposal not in cash within the context of business projects or extraordinary finance transactions under the economic terms of the transaction which will be determined, with the help of independent experts, on the basis of the nature and the characteristics of the transaction, also taking into account the market trend in RCS MediaGroup shares; - 9-member Board of Directors appointed for the years 2015-2017: Maurizio Costa, Pietro Scott Jovane, Teresa Cremisi, Laura Cioli, Gerardo Braggiotti, Tom Mockridge, elected from the majority list presented by Mediobanca Banca di Credito Finanziario S.p.A., also in the name and on behalf of Fiat Chrysler Automobiles N.V., DI.VI. Finanziaria di Diego della Valle & C. S.r.l., Pirelli & C. S.p.A., Intesa San Paolo S.p.A., which together hold 38.9% of the ordinary share capital; Stefano Simontacchi, elected from the list of candidates presented by U.T. Communications S.p.A., which represents 4.616% of ordinary share capital; Dario Frigerio and Paolo Colonna elected from the list of candidates presented by

Anima SGR S.p.A., manager of the fund Fondo Anima Geo Italia, Fondo Anima Italia and Fondo Anima Star Italia Alto Potenziale, Arca SGR S.p.A. manager of the fund Arca Azioni Italia; Eurizon Capital S.A. manager of the fund Eurizon EasyFund - Equity Italy LTE, Eurizon EasyFund Equity Italy, Eurizon Investment SICAV - PB Equity EUR; Eurizon Capital SGR S.p.A manager of the fund Eurizon Azioni Italia and Eurizon Azioni PMI Italia; Kairos Partners SGR S.P.A. manager of the sub-fund Kairos International Sicav – Sub-fund Section; Mediolanum Gestione Fondi SGR.p.A. manager of the funds Mediolanum Flessibile Italia and Mediolanum Flessibile Sviluppo Italia, Mediolanum International Funds Limited - Challenge Funds – Challenge Italian Equity; Pioneer Asset Management S.A. manager of the fund Pioneer Fund Italian Equity and Pioneer Investment Management SGR.p.A., manager of the Pioneer Italia Azionario Crescita fund, which represent 3.25% of ordinary share capital. - Board of Statutory Auditors appointed for the years 2015-2017, composed of: Lorenzo Caprio (Chairman) taken from the list presented by the management companies for the above funds, Gabriella Chersicla and Enrico Maria Colombo (Standing Auditors) taken from the majority list presented by Mediobanca - Banca di Credito Finanziario S.p.A. also in the name and on behalf of the shareholders listed above, Renata Maria Ricotti (Alternate auditor), taken from the list presented by the afore-mentioned fund management companies, Ugo Rock and Barbara Negri (Alternate auditors), taken from the majority list presented by Mediobanca – Banca di Credito Finanziario S.p.A., also in the name and on behalf of the aforementioned shareholders.

 On April 23, 2015, the Board of Directors, which met after the shareholders’ meeting, appointed Maurizio Costa as Chairman and Pietro Scott Jovane as Chief Executive Officer.

 On April 30, 2015, the Board of Directors of RCS MediaGroup, which met under the chairmanship of Maurizio Costa, unanimously appointed Luciano Fontana as the editor-in-chief of Corriere della Sera, who took office when the required procedures were completed. The Board therefore established the following committees, appointing their respective members: Strategic Committee: Maurizio Costa, Pietro Scott Jovane, Paolo Colonna and Tom Mockridge Appointments Committee: Maurizio Costa, Teresa Cremisi and Stefano Simontacchi Remuneration Committee: Gerardo Braggiotti, Teresa Cremisi and Dario Frigerio Control and Risk Committee: Dario Frigerio, Laura Cioli and Stefano Simontacchi

 On April 30, 2015, RCS MediaGroup announced that the Board of Directors of Unidad Editorial had appointed David Jiménez as the new editor of El Mundo.

 On June 9, RCS MediaGroup announced that, in a highly recessionary macro-economic context at global level, with significant impacts on the Group segments, RCS implemented an important efficiency plan in 2013, with the goal of generating €220 million in 3 years, of which €180 million already realised as of today (60% from industrial and process savings). Also thanks to these economic benefits, the Group continues with the investment plan of €160 million in the three-year period, of which around €120 million already allocated for digital development, the launch of new products and technical infrastructures. RCS intends to pursue a profitability objective in line with the best performers at global level and will continue its policy of investing in new products and alternative forms of revenue. However, the sector continues to be characterised by the constant fall in traditional publishing revenue and the persistent difficulties on the advertising front: therefore, it is essential for the RCS Group to adjust the cost structure in line with the new market conditions, to ensure company sustainability and protect the independence and quality of its publications. This means there is a need for initiatives targeted at revising both organisational processes and work activities, in order to make the RCS Group more dynamic and flexible, to meet the challenges of the market. To this end, a meeting was held on June 9 with the trade union representatives of the RCS Group employees and journalists to illustrate the group’s restructuring proposal. In particular, in relation to the perimeter of Italian activities, structural savings of €50 million are expected in 2015, of which €30 million from the reduction in personnel expense. RCS demonstrated its willingness to the trade unions to also draw

on the solidarity contracts to avoid surpluses, now measured at 470 company employees. The top management renewed its commitment, undertaken in 2013, to voluntarily reduce its emoluments.

 On June 30, the Board of Directors of RCS MediaGroup, which met under the chairmanship of Maurizio Costa, acknowledged the offer received from Arnoldo Mondadori Editore S.p.A. in relation to the acquisition of the entire shareholding in RCS Libri S.p.A.. The Board reserved the right to conduct all appropriate evaluations on this matter, also as part of the wider considerations in progress regarding the Group’s strategic prospects. It should be pointed out that: - On February 18, 2015, at the request of CONSOB, RCS MediaGroup S.p.A. confirmed that the Board of Directors had received an expression of interest from Arnoldo Mondadori Editore S.p.A. regarding the RCS Group’s book activities. The Board reserved the right to conduct all appropriate evaluations on this matter. - On March 6, 2015, with respect to the expression of interest received from Arnoldo Mondadori Editore S.p.A. in relation to its possible acquisition of RCS MediaGroup’s stake in RCS Libri S.p.A., the majority of the Board approved the submission to the Mondadori Group of a proposal to concede a period of exclusivity until May 29, 2015 in order to further analyse the terms and conditions of a possible transaction, reserving the right to conduct all appropriate evaluations on this matter. - On May 26, 2015, with reference to the possible acquisition of RCS MediaGroup’s stake in RCS Libri S.p.A. by Arnoldo Mondadori Editore S.p.A., RCS MediaGroup’s Board of Directors, under the chairmanship of Maurizio Costa, resolved - following the relevant request from Arnoldo Mondadori Editore S.p.A. - to extend the period of exclusivity granted to the latter until June 29, 2015, in order to allow the due diligence process to be completed.

 On June 30, 2015, RCS MediaGroup communicated the completion of the transfer of a 34.5% stake in IGPDecaux S.p.A. to JCDecaux Europe Holding SAS and IDA S.p.A. (already the object of a previous communication on February 12, 2015). The financial impact of this transaction, which falls under those set forth in the process of sale of non-core assets, was roughly a gain of €18 million in addition to a potential earn-out of a further €2 million within 3 years, subject to the achievement of certain objectives. It should be pointed out that: - on February 12, 2015, the RCS MediaGroup Board of Directors announced that it had received a binding offer from JCDecaux S.A. and Publitransport S.r.l. for the purchase of 34.5% of the share capital of IGP Decaux S.p.A., held through its subsidiary RCS International Advertising BV. The Board of Directors resolved to accept the offer which, in accordance with the provisions of the loan agreement, was to be submitted to the consortium of financing banks for authorisation. The transaction, which requires a number of steps, was expected to be completed in the first half of 2015. The valuation of the equity investment in the RCS MediaGroup 2014 Financial Statements will be based on the offer price (€18 million). Please recall that at September 30, 2014 the consolidated company amount amounted to roughly €26 million.

EVENTS AFTER THE REPORTING PERIOD

 On July 30, 2015, RCS MediaGroup’s Board of Directors met under the chairmanship of Maurizio Costa to examine the preliminary consolidated results for the first half of 2015, and also unanimously approved the RCS Group’s Strategic Plan based on the guidelines already disclosed to the market and summarised below.

In addition to confirming an already strong presence in the News sector, structured through News Italy - thanks to the strength of Corriere della Sera publications and Vertical Systems - and News Spain - through El Mundo and Expansión, the Group will bolster its presence in the Sport segment through the creation of a specific business unit, which will bring together all the activities of the La Gazzetta dello Sport and Marca publications as well as the organisation of the sporting events of RCS Sport and Last Lap. The plan of the new Sport business unit envisages the gradual international extension of the activities of the Sport segment over time. In this scenario, the RCS Group aims to achieve profitability in line with that of the best international operators in the segment, and the full sustainability of its financial structure.

The Strategic Plan will be presented next September.

In addition, the Board of Directors, as part of the wider assessments of the Group’s strategy, acknowledged the communication received from Arnoldo Mondadori Editore S.p.A., supplementing the offer sent on June 29, 2015 in relation to the purchase of the entire equity investment in RCS Libri S.p.A. and - despite reserving the right to take any decision on the transfer of the equity investment - unanimously resolved to provide the Chief Executive Officer with the mandate to continue negotiations and with the definition of the contractual aspects.

 On July 30, 2015, as part of the plan for the transfer of non-core assets, RCS announced that it had signed a preliminary sale agreement with Blue Ocean S.r.l., a company representing a consortium of Italian entrepreneurs, for a 44.45% stake in the Finelco Group. The price was €21 million, which will be paid on closing of the transaction (expected by September 2015), plus an additional sum of €1 million, connected with the verification of certain conditions by December 31, 2015.

 On August 25, 2015, the Board of Directors was updated on the evolution of ongoing negotiations with Arnoldo Mondadori Editore S.p.A. relating to the shareholding in RCS Libri S.p.A., in relation to which the period of exclusivity was extended until September 30.

2015 OUTLOOK

The first half of 2015 saw positive signs of a recovery in the Italian economy, albeit prospects are still characterised by uncertainty. Italian GDP rose by 0.5% (Source: Istat) in the second quarter of 2015 compared to the second quarter of 2014, while Italian GDP is expected to grow by 0.7% over the whole year (Source: Istat). In Spain, the positive trend strengthened in the second quarter (up 3.1% compared to the same period of 2014), in evidence from the first half of 2014, essentially in line with the Spanish GDP growth forecasts for the whole of 2015 (up 2.8% Source: European Commission).

In the Italian Media segment, and despite taking account of the positive effects expected to derive from EXPO2015, forecasts point to another decline in print advertising sales, albeit less severe than in recent years, while slight growth is forecast in the on-line advertising market. By contrast, in Spain, growth is expected in on-line advertising, and to a lesser extent, traditional newspaper print advertising.

In this macro-economic context, RCS forecasts that consolidated revenue will be essentially stable for 2015, on the whole (on a like-for-like and actual basis), when compared with 2014. As regards distribution revenue, the drop in volumes may be partially offset by price hikes. Books revenue on the whole is expected to be up slightly.

In response to unfavourable trends in the reference markets, in 2015 the RCS Group continued to determinedly pursue additional efficiency initiatives. A total of €220 million in cumulative benefits are expected to be realised by the end of the three-year period of the 2013-2015 Growth Plan. Of this, €190 million have already been achieved at the end of June 2015 (€26 million in the first half of 2015). The expected benefits in the second half also include those deriving from recent trade union agreements signed by the Group in Italy.

On this basis, in 2015 consolidated EBITDA (on a like-for-like and actual basis) is expected to grow until reaching a margin (before non-recurring expense) of around 9% of revenue for 2015, unless the advertising market, especially in Italy, experiences a further significant contraction in addition to the decline already forecast for 2015.

As regards the EBIT forecast for 2015, it is confirmed that net of impairment losses made in the first half totalling €50.8 million, this amount would be a profit.

To further reduce consolidated net financial debt, the Company continued and ramped up activities targeted at non-core asset sales (note the recent transfer of the equity investment in IGP Decaux and the signing of the preliminary sale agreement for the equity investment in the Finelco Group) and also has some additional negotiations in progress for the sale of other assets (including the repeatedly mentioned negotiations for the sale of the equity investment in RCS Libri S.p.A.).

In relation to the contractual commitments set forth in the Loan Agreement, also in light of the approval of the RCS Group’s Strategic Plan, and taking into account the decisions that may be taken as regards the sale of the RCS Libri S.p.A. equity investment, the company asked the financing banks to commence a shared redefinition process to further improve the terms and conditions of the Loan Agreement for the company.

ADDITIONAL INFORMATION REQUIRED BY CONSOB PURSUANT TO ART. 114, PARAGRAPH 5 OF ITALIAN LEGISLATIVE DECREE NO. 58/1998 OF MAY 27, 2013

a) Net financial debt of the RCS Group and of its Parent showing short-term and medium/long- term components separately

(€/millions) Carrying amount Change Jun-30-2015 Dec-31-2014 Non-current financial assets recognised for derivatives - - - TOTAL NON-CURRENT FINANCIAL ASSETS --- Securities 0.6 - 0.6 Financial receivables 5.7 11.8 (6.1) Current financial assets recognised for derivatives - - Receivables and current financial assets 6.3 11.8 (5.5) Cash and cash equivalents 21.5 13.7 7.8 TOTAL CURRENT FINANCIAL ASSETS 27.8 25.5 2.3 Non-current financial liabilities (446.8) (393.8) (53.0) Non-current financial liabilities recognised for derivatives (13.5) (16.5) 3.0 TOTAL NON-CURRENT FINANCIAL LIABILITIES (460.3) (410.3) (50.0) Current financial liabilities (93.8) (97.7) 3.9 Current financial liabilities recognised for derivatives - - - TOTAL CURRENT FINANCIAL LIABILITIES (93.8) (97.7) 3.9

Total net financial debt (1) (526.3) (482.5) (43.8)

The net financial debt stood at €526.3 million at June 30, 2015, which was €43.8 million higher than at December 31, 2014, due essentially to disbursements relating to new investments and non-recurring expense and the absorption of cash due to typical current operations of a seasonal nature. Typical current operations reduced the absorption of seasonal cash by around €30 million (Source: Management Reporting) with respect to the first half of 2014.

The net financial debt of the Parent RCS MediaGroup S.p.A. is shown below, with short-term and long-term components displayed separately.

(€/millions) Jun-30-2015 Dec-31-2014 Change Current financial assets Cash and cash equivalents 6.1 0.7 5.4 Current loan assets 51.4 47.9 3.5 A) Total current financial assets 57.5 48.6 8.9

Current financial liabilities Bank loans and overdrafts ( 42.6) ( 36.8) ( 5.8) Current financial liabilities ( 472.3) ( 585.2) 112.9 Financial liabilities recognised for derivatives - - - B) Total current financial liabilities ( 514.9) ( 622.0) 107.1

(A+B) Total current net financial debt ( 457.4) ( 573.4) 116.0

Non-current financial assets Financial assets recognised for derivatives - - - C) Total non-current financial assets - - -

Non-current loan liabilities Non-current financial liabilities ( 520.3) ( 380.8) ( 139.5) Non-current financial liabilities recognised for derivatives ( 13.4) ( 16.6) 3.2 D) Total non-current financial liabilities ( 533.7) ( 397.4) ( 136.3)

(C+D) Total non-current net financial debt ( 533.7) ( 397.4) ( 136.3)

TOTAL Net Financial Debt ( 991.1) ( 970.8) ( 20.3)

The Parent’s net financial debt stood at a negative €991.1 million at June 30, 2015, which was €20.3 million higher than at December 31, 2014.

This change was essentially generated by the disbursements for new investments, for non-recurring expense incurred for the ongoing reorganisation process, capital injections/coverage of losses for subsidiaries, in addition to the absorption of cash by typical current operations of a seasonal nature, an improvement with respect to the cash absorbed in the first half of 2014.

b) Past due borrowing positions broken down by type (financial, trade, tax and social security) and any related actions taken by Group creditors (reminders, injunctions, supply suspensions)

(€/millions) Analysis of past due borrowing positions

31 - 90 181 - 360 Total past Jun-30-2015 30 days 91 - 180 days > 360 days Falling due Total days days due

Trade borrowing positions 18.8 18.8 4.1 8.5 20.8 71.0 303.1 374.1 Financial borrowing positions 93.9 93.9 Tax borrowing positions 16.9 16.9 Social security borrowing positions 11.3 11.3 Other borrowing positions 0.1 0.1 0.2 106.3 106.5 Total borrowing positions 18.9 18.8 4.1 8.5 20.9 71.2 531.5 602.7

At June 30, 2015, total current liabilities of the RCS Group amounted to €654 million (€620.8 million at March 31, 2015), an increase of €33.2 million compared to March 31, 2015. Not including items with no contractual expiry such as Short-term portions of provisions for risks and charges and payables arising from recognition of equity-accounted investees, they total €602.7 million. Positions which are not past due, of €531.5 million, represent roughly 88% of the total. At June 30, 2015, there were no past due amounts for financial, tax or social security borrowing positions.

Past due payables, mainly trade positions, amounted to a total of €71.2 million (€68.6 million at March 31, 2015), marking an increase of €2.6 million.

Past due positions include €18.9 million in payables past due by less than 30 days (€11.4 million at March 31, 2015), basically associated with business operations (so-called technical past due amounts). In addition, positions due on June 30, 2015, amounting to roughly €26.7 million, have been conventionally classified as payables falling due. The remaining past due amount of €52.3 million includes a total of €17.2 million in past due amounts owed to agents (32.9% of the total remaining past due amounts). On the basis of sector practice, a monthly advance is paid to agents for their respective activities and is recognised in the financial statements as a trade receivable. Agent advances associated with past due payables amount to around €23.2 million, which is higher than specific past due amounts. Please note that amounts due to agents past due by over 360 days represent approximately 69.2% of that past due range. Past due trade borrowing positions totalling €71 million (€68.3 million at March 31, 2015) relate mainly to the Parent for €43.5 million.

Past due amounts have increased by €2.6 million compared to March 2015. This value derives primarily from an increase in the 30 day range (up €7.5 million) and the 181-360 day range (up €2.5 million). This increase is offset by the decrease in the ranges 31-90 day (down €2.9 million), 91-180 day (down €2.6 million) and over 360 day (down €1.9 million).

There have been no legal actions for the recovery of significant sums allegedly due on the basis of trading relationships.

c) Related party transactions of the RCS Group and its Parent

Please refer to the relevant Note of the Half-year Report for detailed information on transactions with related parties of the Group and of RCS MediaGroup S.p.A..

d) Failure to comply with covenants, negative pledges and any other Group borrowing clause which limits the use of financial resources, including updated degree of compliance with such clauses

The amount of the loan under the Agreement entered into in June 2013 for a maximum total amount of €600 million reduced to €447.6 million at June 30, 2015.

The Loan consists of three separate credit facilities:

- Credit Line A (bullet), a term line of €225,000,000.00, subject to bullet repayment at the earlier of (i) the third anniversary of the date of utilisation and (ii) July 31, 2016 and whose use at June 30, 2015 remained essentially unchanged with respect to December 31, 2014 at €95.6 million. It should be noted that said line was repaid early with gains from the sale of non-core assets;

- Credit Line B (amortising), a term line of €275,000,000, subject to repayment at the earlier of (i) the fifth anniversary of the date of utilisation and (ii) July 31, 2018, based on a repayment plan annexed to the Loan Agreement and whose use remained unchanged with respect to December 31, 2014 at €252 million; and

- Revolving Credit Line, a revolving line of €100,000,000, subject to repayment at the earlier of (i) the fifth anniversary of the first date of utilisation and (ii) July 31, 2018.

The Loan Agreement envisaged a NFP default Covenant of no more than €440 million at the end of 2015. The Covenant was identified on the basis of the forecasts of the 2013-2015 Growth plan and foreseeable sales of non-core assets for an amount of no less than €250 million by the end of the year. On August 11, 2014, the Company entered into an agreement with the financing banks to amend certain terms and conditions of the Loan Agreement.

In particular, the Loan Agreement envisages compliance with the following financial covenants, which the Company has deemed consistent with the economic and financial forecasts in the Growth Plan:

Reference Date Financial Covenant (at Group consolidated financial statements level)

Dec-31-2015 (i) Net Financial Debt < equal to €440 million; (ii) Net Financial Debt/EBITDA ratio (Leverage Ratio), lower than 3.50x. Dec-31-2016 (i) Net Financial Debt < equal to €410 million; (ii) Net Financial Debt/EBITDA ratio (Leverage Ratio), lower than 3.25x. Dec-31-2017 (i) Net Financial Debt < equal to €380 million; (ii) Net Financial Debt/EBITDA ratio (Leverage Ratio), lower than 3.00x.

Should the applicable covenants be breached, or when additional qualified events occur such as, inter alia, failure to pay the amounts due under the Loan Agreement, cross default in relation to the Group’s financial debt or the initiation of enforcement procedures by creditors for amounts exceeding certain thresholds, the violation of obligations undertaken under the Loan Agreement, Change of Control or the occurrence of events that have a significant negative effect as defined therein, the lenders are entitled to request the repayment of the credit lines disbursed pursuant to the Loan Agreement. As regards the Change of Control, the termination of the Shareholders' Agreement which took place last October did not match the definition of change of control as it is set out in the Loan Agreement.

The amendment agreement signed on August 11, 2014 changed certain terms and conditions of the Loan Agreement. To achieve greater flexibility with regard to the timing of non-core asset disposals, the expiries of the following obligations were shifted from the end of 2014 to the end of September 2015: (i) obligation of exercising - by December 31, 2015 and in any event in due time to enable the subscription and discharge of the share capital increase subject to the Delegation by March 31, 2016 - the delegation granted to the Parent’s Board of Directors on May 30, 2013 to increase the Parent’s share capital, in tranches, up to €190,000,000.00 (the “Delegation”), precisely, an amount equal to the difference between €600,000,000.00 and the amount of the Parent’s share capital increase actually subscribed and discharged before the first disbursement pursuant to the Loan Agreement, if one of the following trigger events takes place:

(a) at the date of approval of the consolidated quarterly report at September 30, 2015 and on the basis of the figures set forth in that report (and, with respect to the calculation of EBITDA, also on the basis of the Company’s consolidated financial statements at December 31, 2014 and the consolidated quarterly situation at June 30, 2015), the Net Financial Debt/EBITDA ratio (to be calculated before non-recurring expense up to an amount of €40 million) on a rolling last twelve month basis based on the aforementioned quarterly situation at September 30, 2015 (as well as with

respect to EBITDA, the consolidated financial statements at December 31, 2014 and the interim financial statement at June 30, 2015) is above 4.5x and/or

(b) the gains actually collected by the Company from the date on which the Loan Agreement was entered into until September 30, 2015 deriving from deeds of disposal of non-core assets are under €250,000,000.00 (net of amounts already paid for the early voluntary repayment of Credit Line A); and/or without prejudice to the fact that, if by March 31, 2016 the share capital increase subject to the Delegation is discharged in an amount of less than €200,000,000.00, the Parent will be required to dispose of, for cash (without payment extensions and earn-outs), assets other than non-core assets (x) on which sales agreements must be formalised by March 31, 2016; (y) for which the relative gains must be actually collected by March 31, 2016 for a total amount equal to the difference between (a) €200,000,000.00 and (b) the amount actually discharged and paid in cash as well as allocated for the early repayment of the Loan in compliance with the Loan Agreement following the execution of the share capital increase subject to the Delegation actually subscribed; (z) whose sale proceeds must be used for the early mandatory repayment of Credit Line A, until it is fully repaid, and of Credit Line B, to be carried out by reducing the instalment amounts starting with the next instalment.

It should be pointed out that, on June 30, the sale of the equity investment in IGPDecaux was completed, inserted in the list of Non-core assets for the purposes of the repayment of Line A and activities are continuing for the sale of other Non-core assets.

e) Business plan implementation status, including any variations between actual and forecast data

In the second quarter of 2015, Italian GDP rose by 0.5% with respect to the second quarter of 2014 (up 0.2% compared to the previous quarter) - Source Istat estimate. In Italy, at the end of June 2015, the advertising market decreased by 2.8% compared to the same period of last year. In the print media segment there was an overall downturn of 6.3%, with newspapers down by 8%, characterised by a negative trend in both national business and local business, and magazines were down by 3.4% (Source: Nielsen), further confirmation of the negative trend already reported in March. The on-line segment also fell by 3.1% (excluding the Search and Social components) over the same period of the previous year (Source: Nielsen). The advertising market for general television programmes (Source: Nielsen) was down 3% overall compared to the same period of 2014. In terms of circulation, the unfavourable trend in the paper products market continued, due to the acceleration in sales of digital and multimedia versions, which, however, did not offset the loss recorded by traditional copies, and the price increase applied to the main titles at the end of 2014 and the start of 2015. Specifically, the distribution of paper copies of general-interest newspapers (with circulation exceeding 90 thousand copies) in 2015 was down by 10% (Source: ADS figures, January-June 2015). Also including digital copies, the market was down 5.3%.

By contrast, in Spain, the positive performance of GDP that began in the first half of 2014 continues. In particular, Spanish GDP recorded growth of 1% in the second quarter of 2015 compared to the previous quarter, and of 3.1% on an annual basis (Source: Ine).

The overall advertising market showed a 7.5% increase compared to the first half of 2014, and in particular, internet increased by 12.1% (Source: I2P/ArceMedia) and newspapers by 1.9%, driven by the strong performance of local newspapers while national newspapers recorded a drop of 4.3%. However, in terms of circulation, the negative trend with regard to sales of newspapers continued in Spain as well (Source: OJD). Also in the first half of 2015, the RCS Group continued to search for additional efficiency actions, to guard against a fall in revenue due to the above-mentioned market trends, managing to preserve profit results in line with the Budget provisions.

Revenue in the first quarter of the year was slightly down on the objectives set for the period in the 2015 Budget, with Italy feeling the effects of the persistently recessionary advertising market scenario, and Spain the fall in paper circulation, in addition to the closure of two television channels as a result of legislative provisions which involved the blocking of two of the four channels. Despite the drop in revenue, EBITDA is in line with the objectives established in the Budget and an improvement over the first half of 2014, with the main business units closing the half year with higher EBITDA than in the first half of 2014, with a consolidated EBITDA before non-recurring expense at year-end which grew further, confirming the indication of a consolidated EBITDA margin before non-recurring expense of around 9%. Consolidated net financial debt at June 30, 2015 totalled €526.3 million (€518.2 million at June 30, 2014) and - despite feeling the effects of the absorption of cash due to the seasonal nature of the first half year - highlighted a major improvement in typical operations of around €30 million compared to the same period in 2014.

The expected reduction in the NFP (consolidated net debt) associated with continuing non-core asset sales took place with different timing, as already noted in the most recent market disclosures. In particular, negotiations aimed at increasing the value of non-core assets continued, including:  the completion, on June 30, 2015, of the transfer of a 34.5% stake in IGPDecaux S.p.A. to JCDecaux Europe Holding SAS and IDA S.p.A.. The financial impact of this transaction, which falls under those set forth in the process of sale of non-core assets, was roughly a gain of €18 million in addition to a potential earn-out of a further €2 million within 3 years, subject to the achievement of certain objectives;  the signing, on July 30, 2015, of a preliminary sale agreement with Blue Ocean S.r.l., a company representing a consortium of Italian entrepreneurs, for a 44.45% stake in the Finelco Group. The price was €21 million, which will be paid on closing the transaction (expected by September 2015), plus an additional sum of €1 million, connected with the verification of certain conditions by December 31, 2015.

Furthermore, the Board of Directors, as part of the wider assessments of the Group’s strategy on July 30, 2015, acknowledged the communication received from Arnoldo Mondadori Editore S.p.A., for the integration of the offer sent on June 29, 2015 in relation to the purchase of the entire equity investment in RCS Libri S.p.A. and - despite reserving the right to take any decision on the transfer of the equity investment - unanimously resolved to provide the Chief Executive Officer with the mandate to continue negotiations and with the definition of the contractual aspects.

During the same meeting on July 30, the Board of Directors approved the RCS Group’s Strategic Plan based on the guidelines already disclosed to the market and summarised below. In addition to confirming an already strong presence in the News sector, structured through News Italy - thanks to the strength of Corriere della Sera publications and Vertical Systems - and News Spain - through El Mundo and Expansión, the Group will bolster its presence in the Sport sector through the creation of a specific business unit, which will bring together all the activities of the La Gazzetta dello Sport and Marca sectors as well as the organisation of the sporting events of RCS Sport and Last Lap. The plan of the new Sport business unit envisages the gradual international extension over time of the activities of the Sport segment. In this scenario, the RCS Group aims to achieve profitability in line with that of the best international operators in the sector, and the full sustainability of its financial structure. The Strategic Plan will be presented next September.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

Condensed income statement

€/millions Note 2nd quarter 1st half of the year ended 2015 2014(^) 2015 2014(^) I Revenue 11 335.4 348.2 591.9 611.1 II Increase in internal work capitalised 0.0 0.0 0.0 0.0 II Changes in work in progress, finished and semi-finished products 5.4 8.1 13.7 17.4 II Raw materials and services (225.4) (246.8) (426.9) (457.6) III Personnel expense (85.4) (85.7) (165.4) (186.0) II Other operating expense (3.6) (3.2) (5.6) (4.3) IV/V Provisions and allowance for impairment (6.0) (3.9) (10.7) (9.8) VI/VII/VIII/IX Amortisation, depreciation and impairment losses (66.9) (21.8) (82.5) (35.9) Operating loss 11 (46.5) (5.1) (85.5) (65.1) X Net financial expense (9.4) (10.6) (18.3) (20.9) XI Other gains (losses) on financial assets/liabilities (7.9) 0.0 (8.1) 0.0 XII Share of profits (losses) of equity-accounted investees 0.5 (1.3) 0.7 (1.7) Loss before tax (63.3) (17.0) (111.2) (87.7) XIII Income taxes 2.2 1.4 14.5 13.9 Loss from continuing operations (61.1) (15.6) (96.7) (73.8) XIV Profit (loss) from assets held for sale and discontinued operations 13 1.1 (0.6) 1.1 3.4 Loss for the period (60.0) (16.2) (95.6) (70.4)

Attributable to: XV Non-controlling interests 0.2 (0.1) (0.2) (0.4) Owners of the parent (60.2) (16.1) (95.4) (70.0) Loss for the period (60.0) (16.2) (95.6) (70.4)

Basic earnings (losses) per share: continuing operations (0.12) (0.03) (0.19) (0.16) Diluted earnings (losses) per share: continuing operations (0.12) (0.03) (0.19) (0.16) Basic earnings per share: assets held for sale and discontinued operations 0.002 (0.001) 0.002 0.008 Diluted earnings (losses) per share: assets held for sale and discontinued operations 0.002 (0.001) 0.002 0.008

The notes form an integral part of these condensed interim consolidated financial statements.

(^) The income statement for the first half of 2014 and in the second quarter of 2014 were amended to reflect the application of IFRS 5 to the amounts relating to the investees IGP Decaux, transferred on June 30, 2015, and Finelco Group, whose preliminary sale agreement was signed on July 30, 2015.

Condensed statement of comprehensive income

€/millions Note 2nd quarter 1st half of the year endend 2015 2014(^) 2015 2014 Loss for the period (60.0) (16.2) (95.6) (70.4)

Other comprehensive income (expense):

Other comprehensive income/(expense) that will subsequently be reclassified to profit/(loss) for the period: Gains (losses) on foreign currency translation of foreign operations 34 (1.1) 0.2 1.6 0.2 Reclassification of gains (losses) on foreign currency translation of foreign operations 0.0 0.0 0.0 0.0 Gains (losses) on cash flow hedges 34 0.3 (2.1) (0.1) (4.8) Reclassification of gains (losses) on cash flow hedges to profit or loss 34 1.9 2.3 3.8 4.3 Fair value gains (losses) on available-for-sale financial assets 34 0.0 0.0 0.0 0.0 Reclassification of fair value gains (losses) on available-for-sale financial assets to profit or loss 34 0.0 (0.1) 0.0 0.0 Share of comprehensive income (expense) of equity-accounted investees 34 0.0 0.0 0.0 0.0

Income tax on other comprehensive income 34 (0.6) (0.1) (1.0) 0.1

Other comprehensive income/(expense) that will not be subsequently reclassified to profit/(loss) for the period:

Actuarial (loss)/gain on defined benefit plans 34 0.0 0.0 0.0 0.0 Actuarial (loss)/gain on defined benefit plans relating to equity-accounted investees 34 0.0 0.0 0.0 0.0 Income tax on other comprehensive income 34 0.0 0.0 0.0 0.0

Total other comprehensive income (expense) 0.5 0.2 4.3 (0.2)

Total comprehensive expense (59.5) (16.0) (91.3) (70.6)

Total comprehensive income (expense) attributable to: non-controlling interests 0.2 (0.1) (0.2) (0.4) owners of the parent (59.7) (15.9) (91.1) (70.2)

Total comprehensive expense (59.5) (16.0) (91.3) (70.6)

The notes form an integral part of these condensed interim consolidated financial statements.

Condensed statement of financial position

(€/millions) Note Jun-30-2015 Dec-31-2014

ASSETS XVII Property, plant and equipment 15 115.0 118.7 XVIII Investment property 24.6 24.9 XVI Intangible assets 16 454.9 508.8 XIX Financial assets 17 81.6 78.0 XIX Deferred tax assets 17 158.7 147.8 Total non-current assets 834.8 878.2 XX Inventories 18 94.7 78.8 XXI Trade receivables 19 368.5 392.6 XXIII Other receivables and current assets 20 95.0 99.1 XXIII Current tax assets 9.5 8.7 XXXIII Current financial assets 21 6.3 11.8 XXXIII Cash and cash equivalents 21 21.5 13.7 Total current assets 595.5 604.7 XXVII Non-current assets held for sale 13 20.3 36.9 TOTAL ASSETS 1,450.6 1,519.8 EQUITY AND LIABILITIES XXVIII Share capital 475.1 475.1 XXVIII Reserves 32-33 (45.4) (50.3) XXVIII Retained earnings (losses carried forward) (156.5) (45.6) XXVIII Loss for the year (110.8) XXVIII Loss for the period (95.4) Total equity attributable to owners of the parent 177.8 268.4 XXVIII Non-controlling interests 5.3 4.6 Total 183.1 273.0 XXIX Non-current financial liabilities 21 446.8 393.8 XXXI Financial liabilities recognised for derivatives 21 13.5 16.5 XXVI Employee benefits 22 49.4 53.7 XXIV Provisions for risks and charges 22 27.5 28.5 XXV Deferred tax liabilities 70.7 75.6 XXIII Other non-current liabilities 23 5.6 3.3 Total non-current liabilities 613.5 571.4 XXX Current financial liabilities 21 93.8 97.7 XXIII Current tax liabilities 2.2 1.1 XXII Trade payables 24 374.2 395.2 XXIV Current portion of provisions for risks and charges 22 49.0 55.2 XXIII Other current liabilities 25 134.8 126.2 Total current liabilities 654.0 675.4 XXVII Liabilities relating to assets held for sale 13 -- TOTAL EQUITY AND LIABILITIES 1,450.6 1,519.8

The notes form an integral part of these condensed interim consolidated financial statements.

Condensed statement of cash flows

1st half of 1st half of (€/millions) Note 2015 2014

A) Cash flows used in operating activities Pre-tax loss from continuing operations (111.2) (87.7) Profit (loss) from assets held for sale and discontinued operations 0.0 0.0 Amortisation, depreciation and impairment losses 82.5 35.9 (Gains) losses and other non-monetary items (4.1) (3.5) Impairment losses (reversals of impairment losses) on equity investments (0.2) 0.0 Net financial income (including dividend income) 18.2 20.9 - of which with related parties 12 8.9 8.9 Increase (decrease) in employee benefits and provisions for risks and charges 26 3.0 (9.5) Changes in working capital 27 (12.1) (21.6) - of which with related parties 12 6.7 5.6 Income taxes paid 0.0 0.0 Change in assets held for sale and discontinued operations 13 0.0 0.0 Total (23.9) (65.5) B) Cash flows used in investing activities Acquisition of equity investments (net of dividends received) 0.2 (5.8) Capital expenditure in property, plant and equipment, investment property and intangible assets 28 (31.9) (28.7) (Purchase) sale of other non-current financial assets (0.7) 0.2 - of which with related parties 12 (0.1) 0.0 Proceeds from sale of equity investments 29 20.3 0.1 Proceeds from sale of property, plant and equipment, investment property and intangible assets 0.4 18.5 Change in assets held for sale and discontinued operations 13 0.0 0.0 Total (11.7) (15.7) Free cash flow (A+B) (35.6) (81.2) C) Cash flows from financing activities Net change in financial liabilities and other financial assets 30 46.3 61.2 - of which with related parties 12 25.3 16.4 Net interest paid (14.7) (16.8) - of which with related parties 12 (8.9) (8.9) Dividends paid 0.0 0.0 Change in equity reserves (0.6) 47.0 Change in assets held for sale and discontinued operations 13 0.0 0.0 Total 31.0 91.4 Net increase (decrease) in cash and cash equivalents (A+B+C) (4.6) 10.2 Opening cash and cash equivalents (25.2) (15.5) - of which with related parties 12 (13.3) (10.6) Closing cash and cash equivalents 31 (29.8) (5.3) - of which with related parties 12 (6.0) (27.8) Increase (decrease) for the period (4.6) 10.2

RECONCILIATION OF CASH AND CASH EQUIVALENTS (€/millions)

Opening cash and cash equivalents consisting of: (25.2) (15.5) Cash and cash equivalents 13.7 10.7 Current bank loans and overdrafts (38.9) (26.2) Closing cash and cash equivalents (29.8) (5.3) Cash and cash equivalents 21.5 56.6 Current bank loans and overdrafts (51.3) (61.9) Increase (decrease) for the period (4.6) 10.2

The notes form an integral part of these condensed interim consolidated financial statements.

Condensed statement of changes in equity Treasury Losses of the Equ i t y Share shares and Fair value Retained Profit (loss) Non- Share Legal Parent attributable to (€/millions) premium equit y reserve earnings (losses for the year/ controlling Equ i t y capital reserve currently owners of the reserve transaction note 33 carried forward) period interests being incurred parent note 32 Balance at Dec-31-2013 (*) 475.1 65.1 19.1 (174.9) (6.7) 94.6 78.0 (218.5) 331.8 19.0 350.8 Effect of applying IFRS 10 - 11 (15.9) (15.9) Restated balance at Jan-01-2014 475.1 65.1 19.1 (174.9) (6.7) 94.6 78.0 (218.5) 331.8 3.1 334.9 Allocation of loss for the year ended Dec-31- 2013 as per Shareholders’ Meeting resolution of May 8, 2014 - to cover losses (78.0) 78.0 - to retained earnings (losses carried forward) (140.5) 140.5 Amount received from conversion of savings shares as per the Shareholders’ Meeting resolution dated May 8, 2014 47.0 47.0 47.0 Expenses related to conversion of savings shares (1.0) (1.0) (1.0) Equity transaction (0.1) (0.1) 0.2 0.1 Change in equity attributable to non- controlling interests 1.2 1.2 Total comprehensive expense (0.2) (70.0) (70.2) (0.4) (70.6) Balance at Jun-30-2014 475.1 111.1 19.1 (175.0) (6.9) (45.9) (70.0) 307.5 4.1 311.6

Treasury Losses of the Equ i t y shares and Fair value Retained Profit (loss) Non- Legal Parent attributable to premium equit y reserve note earnings (losses for the year/ controlling Equ i t y reserve currently owners of the Sharereserve transaction 33 carried forward) period interests Sh ar e being incurred parent (€/millions) note 32 Balance at Dec-31-2014capital 475.1 110.9 19.1 (174.5) (5.8) (45.6) (110.8) 268.4 4.6 273.0 Allocation of profit (loss) for the year ended Dec-31-2014 as per Shareholders’ Meeting resolution of April 23, 2015 - to retained earnings (losses carried forward) (110.8) 110.8 Equity transaction 0.5 0.5 (0.4) 0.1 Other movements 0.1 (0.1) (0.2) (0.2) Change in equity attributable to non- controlling interests 1.5 1.5 Total comprehensive income (expense) 4.3 (95.4) (91.1) (0.2) (91.3)

Balance at Jun-30-2015 475.1 110.9 19.1 (174.0) (1.4) (156.5) (95.4) 177.8 5.3 183.1

(*) Published in the consolidated financial statements at December 31, 2013 6

Income statement pursuant to CONSOB Resolution no. 15519 of July 27, 2006

€/millions Note First half of 2015 2014 Revenue 11 591.9 611.1 - of which from related parties 12 137.7 127.9 Increase in internal work capitalised 0.0 0.0 Changes in work in progress, finished and semi-finished products 13.7 17.4 Raw materials and services (426.9) (457.6) - of which with related parties 12 (37.7) (40.3) - of which non-recurring 14 (1.6) (0.4) Personnel expense (165.4) (186.0) - of which to related parties 12 (2.9) (17.7) - of which non-recurring 14 (6.3) (24.2) Other operating expense and income (5.6) (4.3) - of which from related parties 12 0.4 1.0 - of which non-recurring 14 2.2 Provisions and allowance for impairment (10.7) (9.8) - of which non-recurring 14 (2.4) (0.4) Amortisation, depreciation and impairment losses (82.5) (35.9) - of which non-recurring 14 Operating loss (85.5) (65.1) Net financial expense (18.3) (20.9) - of which to related parties 12 (8.9) (8.9) Other gains (losses) on financial assets/liabilities (8.1) 0.0 Share of profits (losses) of equity-accounted investees 0.7 (1.7) Loss before tax (111.2) (87.7) Income taxes 14.5 13.9 Loss from continuing operations (96.7) (73.8) Profit from assets held for sale and discontinued operations 13 1.1 3.4 Loss for the period (95.6) (70.4) Attributable to: Non-controlling interests (0.2) (0.4) Owners of the parent (95.4) (70.0) Loss for the period (95.6) (70.4)

Basic losses per share: continuing operations (0.19) (0.16) Diluted losses per share: continuing operations (0.19) (0.16) Basic earnings per share: assets held for sale and discontinued operations 0.002 0.008 Diluted earnings per share: assets held for sale and discontinued operations 0.002 0.008

Statement of financial position pursuant to CONSOB Resolution no. 15519 of July 27, 2006

(€/millions) Note Jun-30-2015 Dec-31-2014

AS S ETS Property, plant and equipment 15 115.0 118.7 Investment property 24.6 24.9 Intangible assets 16 454.9 508.8 Financial assets 17 81.6 78.0 - o f which with related parties 12 0.3 0.2 Deferred tax assets 17 158.7 147.8 Total non-current assets 834.8 878.2 Inventories 18 94.7 78.8 Trade receivables 19 368.5 392.6 - o f which with related parties 12 37.4 40.0 Other receivables and current assets 20 95.0 99.1 - o f which with related parties 12 0.1 0.1 Current tax assets 9.5 8.7 Current financial assets 21 6.3 11.8 - o f which with related parties 12 4.0 10.2 Cash and cash equivalents 21 21.5 13.7 - o f which with related parties 12 7.7 1.1 Total current assets 595.5 604.7 Non-current assets held for sale 11 20.3 36.9 TOTAL ASSETS 1,450.6 1,519.8 EQUITY AND LIABILITIES Share capital 475.1 475.1 Reserves 32-33 (45.4) (50.3) Losses carried forward (156.5) (45.6) Loss for the year (110.8) Loss for the period (95.4) Total equity attributable to owners of the parent 177.8 268.4 Non-controlling interests 5.3 4.6 Total 183.1 273.0 Non-current financial liabilities 21 446.8 393.8 - o f which with related parties 12 184.1 161.9 Financial liabilities recognised for derivatives 21 13.5 16.5 - o f which with related parties 12 12.3 15.1 Employee benefits 22 49.4 53.7 Provisions for risks and charges 22 27.5 28.5 Deferred tax liabilities 70.7 75.6 Other non-current liabilities 23 5.6 3.3 - o f which with related parties 12 Total non-current liabilities 613.5 571.4 Current financial liabilities 21 93.8 97.7 - o f which with related parties 12 27.8 28.8 Current tax liabilities 2.2 1.1 Trade payables 24 374.2 395.2 - o f which with related parties 12 29.4 28.6 Current portion of provisions for risks and charges 22 49.0 55.2 Other current liabilities 25 134.8 126.2 - o f which with related parties 12 3.3 Total current liabilities 654.0 675.4 Liabilities relating to assets held for sale 13 -- TOTAL EQUITY AND LIABILITIES 1,450.6 1,519.8

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FORMAT, CONTENT AND OTHER INFORMATION ON THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1. Corporate information

RCS MediaGroup S.p.A. is incorporated and domiciled in Milan, with its registered office at no. 8, Via Angelo Rizzoli.

On August 25, 2015, RCS MediaGroup’s Half-year Report at June 30, 2015 was approved by the Board of Directors that authorised its publication.

There are two main subsidiaries of RCS MediaGroup S.p.A.: RCS Libri S.p.A. controlled directly and Unidad Editorial S.A. controlled indirectly.

RCS MediaGroup S.p.A., parent of the RCS Group, is organised into divisions.

At June 30 2015, the condensed interim financial statements included 76 direct and indirect subsidiaries consolidated on a line-by-line basis (75 at December 31, 2014). For more details on the equity investments, please refer to the attachment “List of Group equity investments at June 30, 2015”.

RCS MediaGroup S.p.A. does not have any subsidiaries with significant non-controlling investments.

2. Format and content

The RCS Group’s condensed interim consolidated financial statements were drawn up in compliance with IAS 34 “Interim Financial Reporting”, as also set out in Art. 154-ter of the Consolidated Finance Act (Legislative Decree no. 58/1998).

Said condensed interim consolidated financial statements were consolidated on the basis of the interim financial statements of RCS MediaGroup S.p.A. and the subsidiaries in relation to the first six months of 2015, drafted in accordance with the IFRS. The main financial statements of the subsidiaries RCS Libri S.p.A. and Unidad Editorial were approved by the respective Boards of Directors on July 29, 2015 and August 24, 2015, respectively.

The condensed interim consolidated financial statements have been audited by KPMG S.p.A., to which the engagement was assigned pursuant to shareholders’ resolution dated April 28, 2009. In addition, KPMG S.p.A. was assigned the task of performing specific checks (Agreed Upon Procedures) on specific items recorded at June 30, 2015 in the condensed interim consolidated financial statements and in the financial position, in the interim separate financial statement of the Parent in accordance with the International Standard on Related Services (ISRS) 4400 “Engagements to Perform Agreed Upon Procedures regarding Financial Information” issued by the International Auditing and Assurance Standards Board (IAASB).

The presentation currency of these consolidated financial statements is the euro, which is used as the functional currency by most of the Group's companies. Unless otherwise specified, all amounts are stated in millions of euro.

3. Changes in the scope of consolidation

The changes in the scope of consolidation in the first half of 2015 are as follows.

The following companies have been included in the scope of consolidation as equity-accounted investees:

- Quibee S.r.l. (acquired) - Global Alisa, S.L. (acquired)

The following companies previously included in the scope of consolidation as equity-accounted investees, have left the scope of consolidation:

- Digital Accademia Holding S.r.l. (sold) - Digital Accademia S.r.l. (sold) - Log607 S.r.l. (sold)

The following companies previously classified as Assets held for sale and discontinued operations left the scope of consolidation:

- IGPDecaux S.p.A. (sold) - Publitransport GTT S.r.l. (sold) - Audioutdoor S.r.l. (sold) - I - Mago S.p.A. (sold)

4. Consolidation methods and accounting policies The accounting policies adopted for the preparation of the condensed interim consolidated financial statements at June 30, 2015 are the same as those used to draft the consolidated financial statements at December 31, 2014, with the exception of the information disclosed in the paragraph “Accounting standards, amendments and interpretations applied from January 1, 2015”.

With reference to CONSOB communication no. DEM/11070007 of August 5, 2011, it is also noted that the Group does not hold bonds in its portfolio issued by central or local governments or government authorities, and, therefore, it is not exposed to the risk of market fluctuations.

The financial statement formats used in the condensed interim consolidated financial statements reflect the financial statements at December 31, 2014 in condensed format. Significant transactions with related parties and non-recurring items have been indicated in separate financial statements, as required by CONSOB Resolution No. 15519 of July 27, 2006. Therefore, the condensed interim financial statements do not include all the information required by annual financial statements and must be read together with the annual financial statements as at and for the year ended December 31, 2014. In order to appreciate the seasonality of the Group’s activities, please refer to note 35 “Income statement: analysis by quarter”.

Key sources of estimation uncertainty

The preparation of the condensed interim consolidated financial statements has required using estimates and assumptions both for determining the carrying amounts of some assets and liabilities and for measuring contingent assets and liabilities. The estimates and assumptions are periodically reviewed and the effects of any changes immediately reflected in the financial statements. In particular, the current macroeconomic context, still rendered unstable by the effects of the ongoing financial crisis, involved the preparation of estimates on future trends by taking into account said elevated level of uncertainty. It is possible that, following the drafting of the condensed interim consolidated financial statements, actual events may have a different outcome to that forecast for the condensed interim consolidated financial statements at June 30, 2015, causing significant adjustments to the carrying amounts of assets and liabilities, amongst which intangible assets with an indefinite useful life, because of their materiality.

Certain assessment processes, in particular the determination of any impairment losses on intangible assets, are generally carried out on a complete basis at year-end, when all the necessary information is available, and on a half-yearly basis only for the activities of the Unidad Editorial cash generating unit in consideration of the 65

relevance of the values treated, unless there are impairment indicators which call for an immediate impairment test to be carried out or there are events subsequent to June 30 but prior to the publication date, which call for a careful evaluation. In particular, in the Books segment, the carrying amounts of the cash generating units were measured at fair value less cost to sell. This measurement method was adopted as a result of the resolution taken by the Board of Directors on July 30, 2015, which, as part of the wider assessments of the Group’s strategy, acknowledged the communication received from Arnoldo Mondadori Editore S.p.A., for the integration of the offer sent on June 29, 2015 in relation to the purchase of the entire shareholding in RCS Libri S.p.A. and - despite reserving the right to take any decision on the transfer of the equity investment - unanimously resolved to provide the Chief Executive Officer with the mandate to continue negotiations and with the definition of the contractual aspects. In observance of the accruals principle, on continuation of the negotiations also confirmed by the aforementioned resolution and in the absence of new facts which change the course of events, the Books segment will be considered a disposal group in the Interim Management Statement at September 30, 2015 and treated in line with the indications of IFRS 5. However, it was deemed appropriate to take account of these significant facts, which occurred after the date of the condensed interim financial statements to assess the carrying amounts of the cash generating units by using the fair value less costs to sell as the recovery value. The analyses conducted at June 30, 2015 are described in note 16.

Projections are also used when determining the provisions for risks and charges, and in particular expense allocated for the ongoing restructuring process, the estimate of returns in the Media Italy and Media Spain segments, the allowance for impairment and other provisions for write-downs, particularly for inventories in the Books segment, as well as depreciation and amortisation, employee benefits and deferred taxes. In particular, the allocation of deferred tax assets was made on the basis of an analysis of recoverability based, for the Parent, on the 2018 Strategic Plan approved by RCS MediaGroup’s Board of Directors on July 30, 2015 and for the part pertaining to Unidad Editorial, on the basis of the 2016-2019 economic and financial projections approved by Unidad Editorial’s Board of Directors on July 28, 2015 and subject to an Independent Business Review by a consulting firm.

The following is a summary of the principal assumptions used by management in the Group's most critical valuation process, namely the determination of the recoverable amount of non-current assets, including goodwill.

Principal assumptions for determining the recoverable amount of non-current assets

The Group periodically reviews the carrying amount of intangible assets and property, plant and equipment to ensure that this is not higher than the recoverable amount. In particular, such an assessment is carried out whenever there are indications that these assets might be impaired. In the case of goodwill and intangible assets with an indefinite useful life, this assessment is performed once a year irrespective of any signs or evidence of impairment.

Taking into consideration the significance of the values of Unidad Editorial’s cash generating unit, the same was subject to impairment testing also at June 30, 2015. In the presence of a recovering Spanish macroeconomic context and decreasing trend in the risk-free rate (and subsequently of the WACC used for the valuation), the test highlighted a recoverable amount of the cash generating unit around €207 million higher than the carrying amount, after impairment losses on publications of €34.7 million (net of the reversal of impairment losses of €1.1 million of the publication Expansion) as a result of the application of the Relief From Royalty method to the valuation of these publications.

As regards the Unidad Editorial cash generating unit, impairment testing was performed on the basis of the forecast cash flows expected from the cash generating unit at December 31, 2014, appropriately reviewed to take account of new macroeconomic scenarios, the reference markets and new operating events outlined through constant recording of actual figures up to June 30, 2015. The expected cash flows are extended to a period of five years of explicit forecast. Said forecasts carried out were subject to review by Unidad Editorial’s Board of Directors on July 28, 2015. In line with the approach adopted in previous years, the impairment test was organised with the assistance of a leading consultancy firm. A second scenario highlighted recoverable amount of the cash generating unit around €168 million higher than the carrying amount, again after the above-

mentioned impairment losses on publications. This second scenario estimated the terminal value on more prudential assumptions based on a normalised EBITDA calculated by applying the average expected weighted profit margin for the 2016-2019 period to prospective revenue for 2019. It should be noted that this profit margin level applied to the terminal year is also consistent with the sector estimates. In fact, the profit margin envisaged for the 2015-2019 projections is aligned to the first quartile of the distribution of the profit margin of comparables.

As regards the values of the cash generating units regarding the Books segment, the adoption of the fair value less cost to sell as the reference recoverable amount (based on the reasons described above), involved some impairment losses on intangible assets with an indefinite life totalling €14.9 million, including the impairment losses on goodwill for €8.9 million.

For all the remaining cash generating units which include the intangible assets with an indefinite useful life, at June 30, 2015, a detailed analysis was conducted to identify any indicators of impairment in the Group’s intangible assets.

In particular, in order to determine whether goodwill might be impaired, management took into consideration the trends in the financial figures for the current year, comparing them with the respective provisional data used in the impairment testing at December 31, 2014, and analysed the trend in interest rates to evaluate the repercussions of said trend on the estimate of the discount rate (WACC) to be applied to expected cash flows. This analysis highlighted indicators of impairment for the Sfera cash generating unit, essentially attributable to the activities performed in China, therefore also subject, at June 30, 2015, to an impairment test. The impairment test was organised by Sfera with the help of a leading consultancy firm, in line with the approach taken in 2014. The provisional figures used in the impairment test of December 31, 2014 were essentially reconfirmed, with the exception of China, whose trends pointed towards the assumption of a gradual disengagement. The Sfera cash generating unit did not pass the impairment test giving rise to impairment losses of €1.2 million.

The recoverable amount identified by each impairment test is nonetheless sensitive to changes in the assumptions used, such as changes in EBITDA, among the calculation variables, the discount rate (WACC) and the assumption of constant cash flow beyond the planning period (g equal to zero, in nominal terms). In turn, WACC is sensitive to changes in its components, including the risk-free element that synthesises the country risk, which is decreasing, not only for the Unidad Editorial cash generating unit. In order to understand the impact that minimal changes in the assumptions could have on the recoverable amounts calculated in relation to the Unidad Editorial cash generating unit, note 16 contains a sensitivity analysis which forms an integral part of the valuation.

5. Basis of preparation - use of going concern assumption in preparing the financial statements

As envisaged in IAS 1 and in compliance with documents no. 2 of February 6, 2009 and no. 4 dated March 3, 2010 published jointly by the Bank of Italy, CONSOB (the Italian Commission for Listed Companies and the Stock Exchange) and ISVAP (Italy's insurance industry regulator), the evaluations of the Directors with respect to the fulfilment of the going concern assumption for the purposes of preparing the Half-year Report at June 30, 2015 are provided below.

First of all, please recall that at their Extraordinary Meeting on May 30, 2013, the Shareholders resolved to authorise the Board of Directors pursuant to Art. 2443 of the Italian Civil Code to increase the share capital against payment also in several tranches by December 31, 2015 for a maximum total amount of €200,000,000.00 including a possible share premium, and in any event until reaching the maximum of €600,000,000.00 net of the amount effectively subscribed at the conclusion of the share capital increase, pursuant to Art. 2441, first paragraph of the Italian Civil Code, for a maximum of €500,000,000.00, also resolved upon on May 30, 2013 and completed in July 2013 for around €410 million, giving the Board of Directors a mandate, inter alia, to establish, on a case by case basis, in compliance with the limits set forth above, the procedures, terms, timing and all conditions of the share capital increase, including the number and issue price of the shares to be issued (including a possible share premium), as well as the option ratio.

As disclosed, on June 14, 2013, RCS MediaGroup entered into a loan agreement (as subsequently amended, the “Loan Agreement”) under which a pool of financing banks led by Banca IMI S.p.A. as agent bank (the “Agent Bank”) and also including Intesa Sanpaolo S.p.A., Banca Popolare Commercio e Industria S.p.A., Banca Popolare di Bergamo S.p.A., Banca Popolare di Milano S.c.a r.l., BNP PARIBAS S.A. Succursale Italia, Mediobanca – Banca di Credito Finanziario S.p.A. and UniCredit S.p.A. the (“Financing Banks”) granted the Company a loan for a maximum amount of €600,000,000.00.

The Loan Agreement consisted of three separate credit facilities:

- Credit Line A (bullet), a term line of €225,000,000, subject to bullet repayment at the earlier of (i) the third anniversary of the date of utilisation and (ii) July 31, 2016;

- Credit Line B (amortising), a term line of €275,000,000, subject to repayment at the earlier of (i) the fifth anniversary of the date of utilisation and (ii) July 31, 2018, based on a repayment plan annexed to the Loan Agreement (with the first instalment due on June 30, 2016); and

- Revolving Credit Line, a revolving line of €100,000,000, subject to repayment at the earlier of (i) the fifth anniversary of the first date of utilisation and (ii) July 31, 2018.

On August 11, 2014, some contractual conditions of the Loan Agreement were renegotiated, resulting in improved terms for the Company which are reported in note 21 to the condensed interim consolidated financial statements.

In particular, with reference to the Company’s obligations to be complied with in 2015, the Loan Agreement sets forth the following financial obligations (at Group consolidated financial statements level); failure to meet such obligations will result in a Termination Event and/or a Withdrawal Event, depending on the case:

(i) obligation to ensure that the leverage ratio (Net Financial Debt over EBITDA) is lower than 3.50x at the reference date of December 31, 2015;

(ii) obligation to ensure that Net Financial Debt is not higher than €440,000,000.00 at the reference date of December 31, 2015.

At June 30, 2015, the loan amount stood at €447.6 million, of which €95.6 million related to Line A, €252 million related to Line B and €100 million relating to Line C. The loan amount reduced due to the partial early mandatory repayment (pursuant to Art. 8.2.4 of the Loan Agreement) through the use of: (i) as regards Line A, net income deriving from the sale of certain non-core assets for a total of €129.4 million (with total proceeds of €167 million); (ii) as regards line B, 50% of net income from the voluntary conversion of A and B savings shares into ordinary shares for €23 million (with total net proceeds of €46 million).

In early 2015, a leading investment bank was engaged to support the Company in managing and monitoring activities underway to ensure compliance with obligations deriving from the Loan Agreement, particularly with reference to the relative financial obligations.

In order to further reduce Net Financial Debt, the Company continued and intensified activities aimed at disposing of non-core assets in line with the provisions of the 2013-2015 Growth Plan.

In particular, on February 12, 2015, a binding offer was received from JCDecaux S.A. and Publitransport Srl for the purchase of 34.5% of the share capital of IGP Decaux S.p.A., held by the Company through its subsidiary RCS International ADV BV (accepted by RCS Mediagroup S.p.A.’s Board of Directors). The transaction was completed on June 30, 2015 with a positive financial impact of around €18 million, in addition to a potential earn-out of an additional €2 million within 3 years and subject to the achievement of certain objectives.

Furthermore, as part of the plan for the transfer of non-core assets, on July 30, 2015, a preliminary sale agreement was signed with Blue Ocean S.r.l., a company representing a consortium of Italian entrepreneurs, for a 44.45% stake in the Finelco Group. The price was €21 million, which will be paid on closing of the transaction (expected by September 2015), plus an additional sum of €1 million, connected with the verification of certain conditions by December 31, 2015. It should be pointed out that RCS received an expression of interest from Arnoldo Mondadori Editore, in relation to the possible acquisition of RCS MediaGroup S.p.A.’s equity investment in RCS Libri S.p.A.. On March 6, the Board of Directors approved the granting to the Mondadori Group of a period of exclusivity until May 29, 2015 (period then extended) in order to further analyse the terms and conditions of a possible transaction, reserving the right to conduct all appropriate evaluations on this matter. On June 29, 2015, Arnoldo Mondadori Editore S.p.A. communicated an offer in relation to the equity investment in RCS Libri S.p.A.. RCS MediaGroup’s Board of Directors acknowledged the offer, reserving the right to conduct all appropriate evaluations on this matter, also as part of the wider considerations in progress regarding the Group’s strategic prospects. Subsequently, on July 30, 2015, the Board of Directors, as part of the wider assessments of the Group’s strategy, acknowledged the communication received from Arnoldo Mondadori Editore S.p.A., for the integration of the offer sent on June 29, 2015 in relation to the purchase of the entire shareholding in RCS Libri S.p.A. and - despite reserving the right to take any decision on the transfer of the equity investment - unanimously resolved to provide the Chief Executive Officer with the mandate to continue negotiations and define of the contractual aspects.

During the same meeting on July 30, 2015, RCS MediaGroup’s Board of Directors unanimously approved the RCS Group’s Strategic Plan based on the guidelines already disclosed to the market: in addition to confirming an already strong presence in the News sector, structured through News Italy - thanks to the strength of Corriere della Sera publications and Vertical Systems - and News Spain - through El Mundo and Expansión, the Group will bolster its presence in the Sport sector through the creation of a specific business unit, which will bring together all the activities of the La Gazzetta dello Sport and Marca systems as well as the organisation of the sporting events of RCS Sport and Last Lap. The plan of the new Sport business unit envisages the gradual international extension over time of the activities of the Sport sector. In this scenario, the RCS Group aims to achieve profitability in line with that of the best international operators in the sector, and the full sustainability of its financial structure. The Strategic Plan will be presented to the financial community next September.

The Company also has other negotiations in progress for the sale of Non-core assets and Other assets. The Non-core assets include certain properties in Spain and Italy for a total estimated value of around €45 million. Specifically, it includes a property for which a preliminary sale agreement for around €10 million was already signed, subject to the Municipality of Milan’s approval of an Executive Plan for the area, expected in the first half of 2016. Further meetings are continuing aimed at increasing the value of the aforementioned real estate assets.

Also in light of the approval of the RCS Group’s Strategic Plan, and taking into account the decisions that may be taken as regards the sale of the RCS Libri S.p.A. equity investment, the company asked the financing banks to commence a shared redefinition process to further improve the terms and conditions of the Loan Agreement for the company.

This being stated, and despite the presence of current restrictions and obligations set forth in the Loan Agreement, taking into account the general reference context, and despite uncertainties concerning the evolution of the macroeconomic and industry scenario, the Directors believe that it is reasonable to adopt the going concern assumption for the preparation of the Half-year Report at June 30, 2015.

6. Accounting standards, amendments and interpretations which entered into force as from January 1, 2015

The following accounting standards, amendments and interpretations, also revised as a result of the annual Improvement process conducted by the IASB, have been applied for the first time as from January 1, 2015: IFRIC 21 - Levies.

This interpretation, issued by the IASB in May 2013, provides clarifications on when an entity should recognise a liability for the payment of taxes imposed by a government, except for those already covered by other standards (e.g. IAS 12 - Income Taxes). IAS 37 establishes the criteria for recognising a liability, one of which is the existence of a present obligation by the company resulting from past events (known as an obligating event). The interpretation clarifies that the obligating event, which results in a liability for the tax payment, is described in the reference regulations that give rise to the tax payment. IFRIC 21 is applicable according to the IASB as from the years beginning on or after January 1, 2014, while according to the regulations of the European Union, from the date of the start of the first year commencing on or after June 17, 2014. The application of this interpretation as from January 1, 2015 did not impact the figures provided in the Half-year Report at June 30, 2015.

Improvements to IFRSs: 2011-2013 Cycle

On September 12, 2013, the IASB published “Annual Improvements to IFRSs: 2011-2013 Cycle”, which incorporates amendments made to standards as part of the annual improvement process. For the IASB, the amendments came into force for years starting on or after July 1, 2014. For the European Union, the entry into force was put back to years starting on or after January 1, 2015. These amendments are to be applied prospectively and did not impact the figures provided in the Half-year Report at June 30, 2015.

The main amendments regard:

 IFRS 1 - First-time Adoption of International Financial Reporting Standards - It is clarified that the first- time adopter of IFRS may opt for early application of a new standard meant to replace a current standard instead of applying a standard currently in force at the date of the first IFRS financial statements. This option is available when early application of the new standard is permitted. The same version of the standard must be applied to all periods presented in the first IFRS financial statements.  IFRS 3 - Business Combinations - The amendments clarify that all types of joint arrangements fall outside the scope of application of IFRS 3 and not just joint ventures.  IFRS 13 - Fair Value Measurement - IFRS 13 paragraph 52 (portfolio exception) currently allows only financial assets and liabilities included within the scope of application of IAS 39 to be measured at fair value based on their net value. The amendment clarifies that fair value measurement on the basis of net value is also possible for contracts within the scope of IAS 39 which are not defined as financial assets and liabilities as set forth in IAS 32, such as commodity purchase and sale contracts that may be settled in cash for their net value.  IAS 40 - Investment Property - The amendment clarifies that IFRS 3 and IAS 40 are not mutually exclusive and that, in order to determine whether the acquisition of an investment property falls within the scope of IFRS 3, it is necessary to refer to the specific instructions provided by IFRS 3. Instead, to determine whether the acquisition in question falls within the scope of IAS 40, it is necessary to refer to the specific instructions provided for in IAS 40.

7. Accounting standards, amendments and interpretations endorsed by the EU and applicable for the years as from January 1, 2015

Amendments to IAS 19 - Defined Benefit Plans: Employee Contributions

This amendment, issued by the IASB in November 2013, introduces simplifications to account for defined benefit plans that provide for contributions from employees or third parties. In particular, the amendments to IAS 19 allow contributions from employees or third parties to be accounted for as a reduction of “service costs” in the period in which the associated services were provided, if the following conditions are met: ‐ the contributions of employees or third parties are set out in the formal terms of the plan; ‐ the contributions are related to the services provided; ‐ the amount of the contribution is independent of the number of years of service.

In all other cases, the recognition of these contributions will be more complex given that they must be attributed to the individual periods of the plan through an actuarial calculation of the associated liability. For the IASB, the amendments came into force for years starting on or after July 1, 2014. For the European Union, the entry into force was put back to years starting on or after February 1, 2015. Although these amendments are to be applied retroactively, they will not impact the figures provided in the Half-year Report at June 30, 2015.

Improvements to IFRSs: 2010-2012 Cycle

On September 12, 2013 the IASB published “Annual Improvements to IFRSs: 2010-2012 Cycle”, which incorporates amendments made to standards as part of the annual improvement process. For the IASB, the amendments came into force for periods starting on or after July 1, 2014. For the European Union, the entry into force was put back to periods starting on or after February 1, 2015. These amendments are to be applied prospectively.

The main amendments regard:

 IFRS 2 - Share-based Payments - Amendments have been made to the definitions of “vesting condition” and “market condition” and the definitions of “performance condition” and “service condition” (previously included in the general definition of “vesting condition”) have been added.  IFRS 3 - Business Combinations - The amendments clarify that a contingent consideration classified as an asset or liability must be measured at fair value at each reporting date, regardless of whether the contingent consideration is a financial instrument subject to IAS 39 or a non-financial asset or liability. Changes in fair value must be recognised in profit or loss for the year.  IFRS 8 - Operating Segments - The amendments require an entity to provide a disclosure of the judgements made by management in applying operating segment aggregation criteria, including a description of the operating segments that have been aggregated and the economic indicators that have been assessed in determining whether the aggregated operating segments share “similar economic characteristics”. The amendments also clarify that a reconciliation of the total of the reportable segments’ assets to the entity’s assets should only be disclosed if that amount is regularly provided to the chief operating decision maker (“CODM”).  IFRS 13 - Fair Value Measurement - The Basis for Conclusions has been amended to clarify that with the issue of IFRS 13, it remains possible to recognise short-term trade receivables and payables without reporting the effects of discounting if such effects are immaterial.  IAS 16 - Property, Plant and Equipment and IAS 38 - Intangible Assets - The amendments eliminated inconsistencies in the recognition of accumulated depreciation and amortisation when property, plant and equipment or an intangible asset. The new requirements clarify that the gross carrying amount should be adjusted in a manner that is consistent with the carrying amount of the asset and that the accumulated depreciation or amortisation equal the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.  IAS 24 - Related Party Disclosures - with an amendment to IAS 24, the IASB: ‐ extended the definition of “related party” to entities that provide key management personnel services within the group (usually these entities are called “management companies”);

‐ clarified that it is sufficient to provide the total amount of the cost charged by the management company without providing a separate indication of the individual types of benefits that the management company paid to its employees.

8. Accounting standards, amendments and interpretations not yet approved by the EU and applicable for the years as from January 1, 2015

IFRS 14 - Regulatory Deferral Accounts

IFRS 14, issued by the IASB in January 2014, allows only first time adopters of IFRS to continue to recognise regulatory accounts on the basis of the accounting standards applied previously. To improve comparability with entities that already apply IFRS and do not account for such amounts, the standard requires the amounts recorded for regulatory accounting purposes to be presented separately from other items. The standard will apply as of January 1, 2016, but early application is permitted. The process of approval by the European Union is suspended at present.

Amendments to IFRS 11 - Joint Arrangements

The amendments published by the IASB in May 2014 provide clarification on the accounting recognition of the purchases of jointly controlled investments which represent a business. The amendments are applicable prospectively, for the annual periods which will start on or after January 1, 2016; early application is permitted.

Amendments to IAS 16 and IAS 38 – Property, Plant and Equipment and Intangible Assets

The amendments published by the IASB in May 2014 have the aim of clarifying that the use of revenue-based methods to calculate the amortisation/depreciation of an asset is not appropriate since the revenue generated by an activity which includes the use of an asset generally reflects factors other than the consumption of the economic benefits deriving from the asset. The IASB also clarified that revenue generally is not a suitable basis for measuring consumption of the economic benefits generated by an intangible asset. This presumption, however, can be overcome in certain limited circumstances. The amendments are applicable prospectively, for the annual periods which will start on or after January 1, 2016; early application is permitted.

IFRS 15 - Revenue from Contracts with Customers

The standard, issued by the IASB in May 2014, introduces a general framework to establish whether, when and to what extent revenue will be recognised. The standard replaces the recognition criteria set forth in IAS 18 - Revenue, in IAS 11 - Construction Contracts and in IFRIC 13 - Customer Loyalty Programmes, in IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC-31 Revenue - Barter Transactions Involving Advertising. IFRS 15 is applicable for financial years beginning on or after January 1, 2017, and early application is permitted. During first-time adoption, IFRS 15 must be applied retroactively. However, some simplifications (“practical expedients”) and an alternative approach (“cumulative effect approach”) are permitted which avoids restating comparative periods; in the latter case, the effects of the application of the new standard must be booked to opening equity in the year of first-time application of IFRS 15. The Group is currently evaluating the potential impact of the application of IFRS 15 on the consolidated financial statements.

Amendments to IAS 16 and IAS 41 – Agriculture: Bearer Plants

These amendments, published by the IASB in June 2014, require bearer plants that will produce future harvests to be accounted for in line with the requirements established in IAS 16 - Property, plant and equipment, rather than those established in IAS 41 - Agriculture. The amendments must be applied retroactively for years which start as from January 1, 2016, and early application is permitted.

IFRS 9 – Financial Instruments.

The standard, issued by the IASB in July 2014, replaces IAS 39 - Financial Instruments: recognition and measurement. IFRS 9 introduces new provisions for the classification and measurement of financial instruments, including a new model for expected losses for the purpose of calculating impairment losses on financial assets, and new general provisions for hedge accounting. It also includes provisions for the recognition and derecognition of financial instruments in line with the current IAS 39. The new standard will be applicable as from January 1, 2018, and early application is permitted. IFRS 9 indicates, as a general rule, that the application must be prospective, although some exceptions are provided.

Amendment to IAS 27 – Separate Financial Statements.

The amendments to IAS 27, published in August 2014, enable entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in the separate financial statements. The amendments will be applicable for years which start as from January 1, 2016, and early application is permitted.

Amendments to IFRS 10 - Consolidated Financial Statements and IAS 28 - Investments in Associates and Joint Ventures.

The amendment, issued by the IASB in September 2014, highlights the amendments that aim to address an inconsistency in accounting for the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that profit or loss is recognised in full when the transaction concerns a business. The aforementioned amendments will be applicable prospectively for years starting on or after January 1, 2016, but the IASB decided, in January 2015, to postpone the entry into force as inconsistencies were identified in some sections of IAS 28. As a result of the decision taken by the IASB, the European Union therefore blocked the approval process, while waiting for the new document to be published with the new date of entry into force.

Improvements to IFRSs: 2012-2014 Cycle

In September 2014, the IASB published the document “Annual Improvements to IFRSs: 2012-2014 Cycle”, which incorporates amendments made to standards as part of the annual improvement process. The amendments are applicable for years beginning on or after January 1, 2016, and early application is permitted.

The main amendments regard:

 IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations - The amendment introduces specific guidance to IFRS 5 for cases in which an entity reclassifies an asset (or a disposal group) from held for sale to held for distribution (or vice versa), or when an asset no longer meets the criteria for held for distribution.  IAS 19 - Employee Benefits - The amendment to IAS 19 clarifies that high quality corporate bonds used to determine the discount rate of post-employment benefits must be issued in the same currency as the currency used to pay the benefits.  IAS 34 - Interim Financial Reporting - The amendment clarifies the requirements for cases in which the required disclosure is presented in the interim financial report but outside the interim financial statements. The amendment requires the disclosure to be included through a cross-reference from the interim financial statements to other parts of the interim financial report, and the document to be available to users of the financial statements on the same terms as the interim financial statements and at the same time.  IFRS 7 - Financial Instruments: Disclosures - The document introduces additional guidance to clarify whether a servicing contract constitutes residual involvement in a transferred asset for the purposes of the required disclosure about transferred assets.

Amendment to IAS 1 - Disclosure initiative

The amendments to IAS 1, published in December 2014 are applicable for years beginning on or after January 1, 2016, and early application is permitted. The main amendments regard:

 Materiality and aggregation: An entity should not compromise the clarity of its financial statements by obscuring information material with irrelevant information or by aggregating material items of information that have a different nature or function. In addition, for additional subtotals, the entity must also present the reconciliation of each subtotal with the reported total.  Information to be presented in the statement of financial position and in the statement of comprehensive income: Specific items of profit or loss, other comprehensive income and the statement of financial position may be disaggregated. Partial totals must consist of elements recognised and measured in accordance with IFRS, be presented and labelled so as to make the items constituting the subtotal clear and understandable; be consistent from one year to the next.  Statement of other comprehensive income: The entity’s share of other comprehensive income of equity- accounted associates and joint ventures should be presented in aggregate as single line items based on whether or not it will subsequently be reclassified to the profit or loss.  Notes - Structure: The entity is free to decide on the order of presentation of the financial statements, but must consider the effect on understandability and comparability of its financial statements, highlighting the most significant business segments for understanding its financial performance and financial position.

Amendment to IFRS 10, IFRS 12 and IAS 28 - Investment Entities: exceptions to the consolidation method

The amendments, published in December 2014 are applicable retroactively for years beginning on or after January 1, 2016, and early application is permitted.

The main amendments regard:

 IFRS 10 - Consolidated Financial Statements - The amendments to this IFRS clarify that the exception from presentation of the consolidated financial statements applies to a parent in turn controlled by an investment entity, when the investment entity measures all subsidiaries at fair value.  IAS 28 - Investments in Associates - The amendment to IAS 28 makes it possible for a company that is not an investment entity but which applies the equity method of accounting for its equity investment in an investment entity to retain the fair value measurement applied by the investment entity for its interests in subsidiaries.  IFRS 12 - Disclosure of Interests in Other Entities - the amendment to IFRS 12 clarifies that this standard does not apply to an investment entity that prepares financial statements in which all of its subsidiaries are measured at fair value through profit or loss.

The Group will adopt these new standards, amendments and interpretations on the basis of the date of application and will assess their potential impact when these are approved by the European Union.

9. Management of capital and financial risks

The Group manages its capital structure and financial risks in accordance with the asset structure.

The Group's objective is to maintain a suitable credit rating and capital ratio levels over time which are consistent with its asset structure, taking into consideration current trends in credit supply in the Italian economy, which appears to be continuing the improvement commenced last year thanks to the first signs of economic growth and the persistence of a spread between long-term Italian Government bonds and German bonds at some of the lowest levels recorded in recent years, which ensures the average cost of new borrowing at rather competitive rates. In the first half of 2015, the objectives, policies and procedures to hedge against these risks did not change.

The agreement for the medium/long-term loan disbursed in July 2013, some terms and conditions of which were later amended on August 11, 2014, envisages specific financial covenants (at Group consolidated financial statements level). Regarding such covenants, please refer to the comments provided in the section “Additional information required by CONSOB pursuant to Art. 114, paragraph 5 of Italian Legislative Decree no. 58/1998 of May 27, 2013” of this Half-year Report.

In relation to the interest rate hedging conditions on the loan agreement, these were negotiated with the financing banks with reference to the repayment profile of credit lines A (bullet with three-yearly maturity) and B (amortising with five-yearly maturity), constituting the loan agreement together with the revolving line (five- yearly maturity). The various financial risks to which the RCS Group is exposed are commented on below:

Interest rate risk

Interest rate risk refers to the risk of higher financial expense because of an adverse, unexpected fluctuation in interest rates. The Group is exposed to this risk in relation to its floating-rate financial liabilities. The Group uses derivatives to manage exposure to interest rate risk; the contracts currently in place are Interest Rate Swaps (IRS) and Interest Rate Caps. At June 30, 2015, around 50% of loans and borrowings, including finance lease payables, were at a contractually fixed rate, or transformed to fixed rate from a variable rate via interest rate swaps (IRS) or hedged by interest rate caps (at December 31, 2014 this stood at 56% and around 69% at June 30, 2014).

Currency risk

Currency risk can be defined as the sum of negative effects on assets or liabilities in foreign currency caused by changes in exchange rates. Although the RCS Group has an international presence, it does not have a large exposure to currency risk because the euro is the functional currency in its principal areas of business, the currency in which business cash flows are chiefly denominated.

Liquidity risk

Liquidity risk can arise in relation to difficulties in obtaining finance in due time to support operating activities, also possibly for the purpose of repaying maturing loans. The Finance department has the central responsibility for sourcing the required funds and investment of temporary liquidity (using cash management systems for the main subsidiaries) in compliance with the objectives and strategies defined by management. The Parent's objective continues to be that of maintaining a balance between continuity of financing and flexibility of management by: - investing any available cash in short-term transactions (usually lasting between one and three months) that can be easily and quickly unwound, such as money-market instruments; - using different types of source of finance, both short-term as well as medium/long-term.

Credit risk

Credit risk can be defined as the possibility that one party to a financial instrument will cause a financial loss by failing to discharge an obligation. Trade receivables are managed by the Group's individual companies in compliance with the Group's financial objectives, agreed commercial strategies and operating procedures, which prevent products or services from being sold to customers without an adequate credit rating or collateral. New customers and their credit rating

are generally evaluated using an automated scoring system. In addition, receivables are constantly controlled during the year with the aim of reducing late payments and limiting any significant losses. The Group has adopted a rigorous customer classification criterion to permit careful monitoring of situations of potential risk. This measure was necessary in light of the possible deterioration of receivables and the lower reliability of credit ratings, which are still influenced by the macroeconomic scenario as well as the scarcity of market liquidity. Under the adopted impairment procedures, individual impairment losses are recognised on large, individual trade positions for which a significant payment delay has been reported or which are potentially in default. A worsening in the credit rating determines a specific impairment loss on the receivable, even if the same is not past due at the analysis reference date. The applicable impairment percentage is established according to the past due age range, and periodically reviewed to take account of credit ratings given by the Group to individual counterparties. The impairment percentages of the individual customers, with regard to Italy, were recently updated (start of 2015). The level of hedging of the allowance for impairment at June 30, 2015, with respect to total trade receivables and compared with the figure at June 30, 2014, rose from 12.5% to 13.4%, upon conclusion of the process of evaluation of the individual credit positions. Changes recorded in trade receivables at June 30, 2015 did not significantly alter credit risk with respect to December 31, 2014. As far as loans are concerned, investments of surplus cash and derivative transactions are carried out with highly reputable banking counterparties.

Fair value of financial instruments

In the first six months of 2015, there were no reclassifications between the various levels of the fair value hierarchy used to measure the fair value of financial instruments at December 31, 2014.

The levels are as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); Level 3: inputs for the asset or liability which are not based on observable market data.

At June 30, 2015 and December 31, 2014 assets and liabilities have been classified according to the fair value hierarchy as follows.

Hierarchy of fair value measurement for categories of financial instruments at June 30, 2015 Note level 1 level 2 level 3 Total FINANCIAL ASSETS Financial assets at fair value through profit or loss Held-for-trading securities 21 0.6 0.6 Available-for-sale financial assets Equity investments 17 5.1 5.1 Hedging derivatives -- Total - -5.75.7 FINANCIAL LIABILITIES

Financial liabilities at fair value through profit or loss Non-hedging derivatives - - - - Hedging derivatives 21 - 13.5 - 13.5 Total - 13.5 - 13.5

Hierarchy of fair value measurement for categories of financial instruments at December 31, 2014 Note level 1 level 2 level 3 Total FINANCIAL ASSETS

Financial assets at fair value through profit or loss Held-for-trading securities 21 0- Non-hedging derivatives Available-for-sale financial assets Equity investments 17 - 4.6 4.6 He dgi ng de ri vati ve s -- Total - -4.64.6

FINANCIAL LIABILITIES

Financial liabilities at fair value through profit or loss Non-hedging derivatives - - - - He dgi ng de ri vati ve s 21 - 16.5 - 16.5

Total - 16.5 - 16.5

The following table reports movements in the period in items classified in Level 3. The following changes in the items classified in Level 3 took place during the period in question:

Gains/(losses) Gains and losses recognised Balance at Dec-31- recognised in profit or Increases/ Decreases/ as other comprehensive Transfers to/from Balance at Jun-30- 2014 loss acquisitions sales income level 3 2015 4.6 0.2 0.9 5.7

10. Business combinations and acquisitions of non-controlling interests

Polis Medialink S.r.l.

On February 27, 2014, 100% of the quota capital of Polis Medialink S.r.l., publisher of the YouReporter.it portal and the Italian leader in user generated videos, was acquired. Due to this transaction, YouReporter.it, which has been used as a publishing supplier of Corriere della Sera for years, will now consolidate its leadership and continue to grow by offering an increasingly independent, broader and deeper range of content to its audience, due to its greater integration with the on-line properties of Corriere della Sera. With this acquisition, the RCS Group continues to strengthen its digital strategy and develop its video offering in line with the strategic plan, via the acquisition of a technologically advanced platform that has met with great success among the Italian digital public, which can also be extended to other Group properties in Italy and abroad.

The Group has temporarily accounted for the business combinations in 2014, reserving itself - in line with the matters envisaged by the standard IFRS 3 - Business combinations - the right to complete the cost allocation within twelve months of the acquisition date. Subsequently, the Group assigned a leading advisory company the task of allocating the surplus inherent in the property, plant and equipment and investment property and intangible assets and in the liabilities included in the scope of the acquired company, on the basis of the measurement methods deemed most appropriate in relation to the type of asset considered (“Purchase Price Allocation” process). The valuation led to the identification of the following values for PolisMedialink’s assets. In particular, the fair value estimate of the internet domains Youreporter.it and Youreporternews.it led to the identification of a fair value gain of €0.8 million emerging from the comparison with the associated carrying amount. In view of this activity, a provision for deferred tax liabilities of €0.3 million was allocated. Consequently, the residual goodwill stood at €1.9 million.

Fair value recognised at Carrying amount (€/millions) acquisition Assets acquired: 0.1 0.9 Non-current assets 0.8 of which domains 0.8 Current assets 0.1 0.1 of which cash and cash equivalents of which current financial assets Liabilities assumed: (0.3) Non-current liabilities (0.3) of which provision for deferred tax liabilities (0.3) Current liabilities Net identifiable assets acquired 0.1 0.6 Portion of equity acquired 0.1 0.6 Consideration transferred 2.5 2.5 Goodwill arising from the acquisition 2.4 1.9

Consideration transferred 2.5 Payments made 2.3

DeA 59 business unit

On January 30, 2015, the ownership structure of Digital Factory S.r.l. was modified as a result of the transfer by DeA 59 S.r.l. of the business unit including Channel 59. As a result, the percentage stake held by the RCS Group in Digital Factory S.r.l through the subsidiary Digicast fell from 100% to 60%. DeA 59 S.r.l. is a company which operates in the publishing sector, belonging to the De Agostini Group, owner of TV channel 59. Channel 59 is part of a segment of digital terrestrial sports channels broadcast nationally free-to-air.

In order to adequately enhance this channel, DeA 59 S.r.l. began the search for potential partners to realise a new publishing project and, therefore, identified RCS Mediagroup S.p.A. as a suitable company for the start of a joint project involving the launch of a sports television channel. On February 26, 2015, La Gazzetta dello Sport started its television version GazzettaTv on digital terrestrial channel 59.

The operation entailed, on the part of Digital Factory S.r.l., the resolution of a quota capital increase and a quota premium reserve totalling EUR 3.8 million, subscribed and paid-in by RCS for €1.9 million, and by DeA 59 S.r.l., with the transfer of Canale59, valued at €1.9 million. The transfer of Channel 59 was valued through an appraisal pursuant to Art. 2465 of the Italian Civil Code.

The transfer involved, for RCS, the recognition of badwill, classified under profit of equity-accounted investees. The badwill essentially represents the partial recovery of costs that Digital Factor S.r.l. had incurred last year for the launch of the sports television channel.

Fair value Carrying recognised at amount (€/millions) acquisition Assets acquired: 0.2 1.9 Non-current assets 0.2 1.9 of which Channel 59 concession 1.7 of which concessions, licenses, trademarks 0.2 0.2 Current assets Liabilities assumed: Non-current liabilities Current liabilities Net identifiable assets acquired 0.2 1.9 Portion of equity acquired 0.1 1.1 Consideration 0.9 0.9 Badwill (0.3) Goodwill arising from transfer 0.7 0.0

Consideration: Portion of equity transferred prior to transaction 0.1 Portion of share capital increase reserved to RCS pertaining to DeA 59 0.8

11. Segment reporting

In application of IFRS 8, the following tables present information by operating segment. RCS has identified its various reportable segments based on factors that management uses to make its operating decisions, i.e. on the internal reports which are regularly reviewed by management for the purposes of allocating resources to the different segments and assessing their performance.

The accounting policies used for presenting the figures of reportable segments are consistent with those adopted for preparing the consolidated financial statements.

Transactions between the different segments mostly refer to the exchange of goods, the provision of services and the provision and use of funds. All such transactions are conducted on an arm’s length basis, according to the quality standard of the goods and services provided.

Information by operating segment

Other reconciliation €/millions Operating segments items Media Media Books Advertising Corporate Functions Eliminations / 2nd quarter 2015 Italy Spain (1) and Events and Other Activities adjustments TOTAL Distribution revenue 72.4 35.4 45.6 0.0 0.4 (0.7) 153.1 Advertising revenue 59.5 41.5 - 89.9 4.1 (55.3) 139.7 Other publishing revenue 5.5 10.2 2.1 20.8 15.1 (11.1) 42.6 Total segment revenue 137.4 87.1 47.7 110.7 19.6 (67.1) 335.4 Intersegment revenue (55.5) (0.4) (1.0) (0.1) (10.1) Revenue 81.9 86.7 46.7 110.6 9.5 335.4 Segment operating profit (loss) 10.7 (34.7) (16.3) 8.4 (14.6) 0.0 (46.5) Net financial expense (9.4) Other gains (losses) on financial assets/liabilities (7.9) - of which dividends from non-current equity investments 0.0 Share of profits (losses) of equity-accounted investees 0.0 0.2 0.0 0.2 0.1 0.5 Loss before tax (63.3) Income taxes 2.2 Loss from continuing operations (61.1) Profit from assets held for sale and discontinued operations 1.1 Loss for the period (60.0) Loss attributable to non-controlling interests (0.2) Loss attributable to owners of the parent (60.2)

Other reconciliation €/millions Operating segments items Advertisin 2nd quarter 2014 (2) Media Media Books g and Corporate Functions Eliminations / Italy Spain (1) Events and Other Activities adjustments TOTAL Distribution revenue 68.7 41.2 43.8 0.0 0.6 (1.0) 153.3 Advertising revenue 63.5 44.3 - 98.9 4.4 (61.4) 149.7 Other publishing revenue 5.7 11.4 1.9 21.2 15.8 (10.8) 45.2 Total segment revenue 137.9 96.9 45.7 120.1 20.8 (73.2) 348.2 Intersegment revenue (61.9) (0.3) (0.8) (0.8) (9.4) Revenue 76.0 96.6 44.9 119.3 11.4 348.2 Segment operating profit (loss) 4.3 (0.8) (2.6) 5.6 (11.5) (5.1) Net financial expense (10.6) Other gains (losses) on financial assets/liabilities 0.0 - of which dividends from non-current equity investments 0.0 Share of profits (losses) of equity-accounted investees (0.1) (0.1) 0.0 0.0 (1.1) (1.3) Loss before tax (17.0) Income taxes 1.4 Loss from continuing operations (15.6) Loss from assets held for sale and discontinued operations (2) (0.6) Loss for the period (16.2) Profit attributable to non-controlling interests 0.1 Loss attributable to owners of the parent (16.1)

(1) The Casa Editrice La Tribuna business unit and trademark were sold on March 1, 2014. This change led in total to lower consolidated revenue of €0.3 million and an improvement in the EBITDA of €0.4 million. (2) In the second quarter of 2014, loss from assets held for sale and discontinued operations was restated to also take account of the profit (loss) accrued in the second quarter of 2014 and relating to the investees IGPDecaux transferred at June 30, 2015 and Finelco Group, classified under assets held for sale and discontinued operations starting from the end of 2014, whose preliminary sale contract was signed on July 30, 2015. Reference is made to note 13 for the information concerning Assets held for sale and discontinued operations.

Other reconciliation €/millions Operating segments items

Corporate First half of the year ended 2015 Advertising Functions and Eliminations / Media Italy Media Spain Books (1) and Events Other Activities adjustments TOTAL Distribution revenue 145.3 69.7 73.0 0.0 0.9 (1.7) 287.2 Advertising revenue 102.7 72.1 - 150.6 6.5 (95.9) 236.0 Other publishing revenue 10.7 18.4 3.6 28.0 29.5 (21.5) 68.7 Total segment revenue 258.7 160.2 76.6 178.6 36.9 (119.1) 591.9 Intersegment revenue (96.2) (0.8) (1.5) (0.5) (20.1) Revenue 162.5 159.4 75.1 178.1 16.8 591.9 Segment operating profit (loss) 5.9 (42.0) (24.1) 3.9 (29.2) 0.0 (85.5) Net financial expense (18.3) Other gains (losses) on financial assets/liabilities (8.1) - of which dividends from non-current equity investments 0.0 Share of profits (losses) of equity-accounted investees 0.0 0.3 (0.3) 0.2 0.6 0.7 Loss before tax (111.2) Income taxes 14.5 Loss from continuing operations (96.7) Profit from assets held for sale and discontinued operations (2) 1.1 Loss for the period (95.6) Profit attributable to non-controlling interests 0.2 Loss attributable to owners of the parent (95.4)

Other reconciliation €/millions Operating segments items Corporate First half of the year ended 2014 Advertising Functions and Eliminations / Media Italy Media Spain Books (1) and Events Other Activities adjustments TOTAL Distribution revenue 138.3 81.0 69.6 0.0 1.2 (2.0) 288.1 Advertising revenue 111.0 75.2 - 164.7 6.8 (106.9) 250.8 Other publishing revenue 11.3 20.4 2.5 29.3 29.8 (21.1) 72.2 Total segment revenue 260.6 176.6 72.1 194.0 37.8 (130.0) 611.1 Intersegment revenue (107.5) (0.6) (1.4) (1.7) (18.8) Revenue 153.1 176.0 70.7 192.3 19.0 611.1 Segment operating profit (loss) (2.5) (26.2) (11.6) 0.7 (25.5) 0.0 (65.1) Net financial expense (20.9) Other gains (losses) on financial assets/liabilities 0.0 - of which dividends from non-current equity investments 0.0 Share of profits (losses) of equity-accounted investees (0.1) 0.0 (0.7) 0.0 (0.8) (1.7) Loss before tax (87.7) Income taxes 13.9 Loss from continuing operations (73.8) Profit from assets held for sale and discontinued operations (2) 3.4 Loss for the period (70.4) Profit attributable to non-controlling interests 0.4 Loss attributable to owners of the parent (70.0)

(1) The Casa Editrice La Tribuna business unit and trademark were sold on March 1, 2014. This change led in total to lower consolidated revenue for €0.3 million and an improvement in the EBITDA of €0.4 million. (2) At June 30, 2014, profit from assets held for sale and discontinued operations was restated to also take account of the profit (loss) accrued in the first half of 2014 and relating to the investees IGPDecaux transferred at June 30, 2015 and Finelco Group, classified under assets held for sale and discontinued operations starting from the end of 2014, whose preliminary sale contract was signed on July 30, 2015. Reference is made to note 13 for information concerning Assets held for sale and discontinued operations.

€/millions Operating segments

Corporate Media Advertising Functions Jun-30-2015 Media Italy Books TOTAL Spain and Events and Other Activities

Segment assets 190.6 480.3 215.5 175.9 120.3 1,182.6 Investments in associates and JVs - 43.6 0.6 2.9 4.6 51.7 Unallocated financial assets - - - - - 27.8 Unallocated tax assets - - - - - 168.2 Assets held for sale (1) - - - - - 20.3 Total assets 1,450.6

€/millions Operating segments

Corporate Media Advertising Functions Media Italy Books TOTAL Spain and Events and Other Activities Dec-31-2014 Segment assets 191.0 532.3 226.6 178.4 124.1 1,252.4 Investments in associates and JVs - 43.2 1.1 0.1 4.1 48.5 Unallocated financial assets - - - - - 25.5 Unallocated tax assets - - - - - 156.5 Assets held for sale (1) - - - - - 36.9 Total assets 1,519.8

(1) Reference is made to note 13 for information concerning Assets held for sale and discontinued operations.

Information about major customers No revenue was earned in the first half of 2015 from third parties, excluding transactions with associates and joint ventures, deriving from transactions with a single customer, that amounted to more than 10% of the Group's total revenue.

12. Related party transactions

As required by CONSOB Communication pursuant to article 114, paragraph 5 of Italian Legislative Decree 58/98, protocol number 13046378 of May 27, 2013, transactions with the related parties of the RCS Group are reported below.

As regards the Regulations approved by CONSOB with resolution no. 17221 of March 12, 2010 and subsequent amendments, on November 10, 2010 the Parent adopted a procedure for transactions with related parties as for authorisations and communication with the market and CONSOB. This procedure remained in force throughout 2013. Subsequently, several updates made to this procedure became effective as of January 1, 2014. A copy of this new edition of the Procedure is published on the website of the Parent in the “Governance” section. This procedure, as the previous provisions, has also been described in the Report on Corporate Governance and Ownership Structure. In this regard, in consideration of the provisions of said Procedure, in addition to the more significant transactions indicated above, several less significant transactions were subject to the prior opinion of the Related Party Transactions Committee provided for therein.

Jointly controlled companies and associates of the Group have also been identified as related parties, for the purposes of the provisions of IFRS. The Ultimate Parent of the Group is RCS MediaGroup S.p.A.. Related parties include shareholders (of RCS MediaGroup S.p.A.) that exercise significant influence over the RCS Group (and their parents, subsidiaries and jointly controlled companies) as well as, on a voluntary basis and until the reference date of this Half-year Report, each of the remaining parties formerly participating (and each of the parties controlling or controlled by such participant, directly or indirectly, on the basis of the criteria pursuant to Art. 93 of the Consolidated Finance Act) in the RCS MediaGroup Consultation and Lock-Up

Shareholders’ Agreement (terminated on October 30, 2013), which held an equity investment exceeding 3% of the Parent’s ordinary share capital on the date of the appointment of the previous Board of Directors (appointed on May 2, 2012 with expiry of office on April 23, 2015). “Other related parties” also includes certain key management personnel as reported below.

The following table shows the amount and proportion of related party transactions and balances included in each relevant financial statement caption. Intragroup transactions eliminated on consolidation are excluded.

Receivables and Financial Tra de Other receivables and Cash and cash current financial (€/millions) assets receivables current assets equivalents assets

Jointly controlled companies - 28.2 - 4.0 - Associates 0.3 6.3 - - - Supplementary pension fund for executives - - 0.1 - - Other group companies (1) - 2.8 - 0.0 7.7 Other related parties (2) - 0.1 0.0 - - To t a l 0 . 3 37.4 0.1 4.0 7.7 Reported total 81.6 368.5 95.0 6.3 21.5 % of the reported total 0.4% 10.1% 0.1% 63.5% 35.8% (1) They include the parties formerly participating in the “Consultation and Lock-Up Shareholders’ Agreement” (expired on October 30, 2013) which held equity investments exceeding 3% on the date of appointment of the RCS MediaGroup’s Board of Directors (May 2, 2012). (2) It refers mainly to transactions with key management personnel and their close family members.

Non-current Non-current financial Current Tr a de Other current financial liabilities financial (€/millions) payables liabilities liabilities recognised for liabilities de rivative s

Jointly controlled companies - - - 3.4 2.6 Associates - - 2.8 14.6 0.6 Supplementary pension fund for executives - - - - - Other group companies (1) 184.1 12.3 25.0 11.4 - Other related parties (2) - - - - 0.1 Total 184.1 12.3 27.8 29.4 3.3 Reported total 446.8 13.5 93.8 374.2 134.8 % of the reported total 41.2% 91.1% 29.6% 7.9% 2.4%

(1) They include the parties formerly participating in the “Consultation and Lock-Up Shareholders’ Agreement” (expired on October 30, 2013) which held equity investments exceeding 3% on the date of appointment of the RCS MediaGroup’s Board of Directors (May 2, 2012). (2) It refers mainly to transactions with key management personnel and their close family members.

Other Ordinary Other operating financial Raw materials Revenue personnel expense and income (€/millions) and services expense income and expense

Jointly controlled companies 127.6 (8.9) - 0.6 0.1 Associates 5.2 (16.0) - 0.1 - Supplementary pension fund for executives - - (0.3) - - Other group companies (1) 4.8 (12.1) - (0.3) (9.0) Other related parties (2) 0.1 (0.7) (2.6) - - Total 137.7 (37.7) (2.9) 0.4 (8.9) Reported total 591.9 (426.9) (165.4) (5.6) (18.3) % of the reported total 23.3% 8.8% 1.8% -7.1% 48.6%

Purchase of Net change in Net financial Changes in other non- financial Opening cash Closing cash income Net Statement of cash flows working current liabilities and and cash and cash (including interest capital financial other financial equivalents equivalents dividend received assets assets income)

Related parties 6.7 (0.1) 25.3 (13.3) (6.0) 8.9 (8.9) Reported total (12.1) (0.7) 46.3 (25.2) (29.8) 18.2 (14.7)

For a detailed analysis of related party transactions refer to the specific attachment to this Half-year Report.

Transactions with associates and jointly controlled companies mostly refer to the exchange of goods, the provision of services, the provision and use of funds, as well as tax-related transactions. All such transactions are conducted on an arm's length basis, according to the quality of the goods and services provided.

Transactions with jointly controlled companies mostly refer to m-dis Distribuzione Media S.p.A., in respect of which Group companies have earned €127.6 million in revenue, incurred €8.7 million in costs, earned €0.6 million in operating income and reported €28.1 million in trade receivables, €4 million in current financial receivables and €3.3 million in trade payables.

The most significant trade transactions between associates concerned the companies in the Bermont Group: €0.7 million in trade receivables and €14.2 million in trade payables, as well as €0.6 million in revenue and €15.1 million in costs and €0.1 million in other operating income) and Mach 2 Libri S.p.A. (trade receivables for €5.3 million, trade payables for €0.1 million and revenue for €4.3 million).

The financial transactions with “other group companies” relate primarily to loan transactions and leases with companies in the Intesa SanPaolo Group and the Mediobanca Group as well as trade transactions with FCA (Fiat Chrysler Automobiles) Group companies. The trade transactions with “other group companies” involve revenue of €4.8 million, costs of €12.1 million, as well as financial expense of €9 million. Revenue was generated mainly with FCA (Fiat Chrysler Automobiles) and Intesa SanPaolo Group companies, while the costs incurred pertain mainly to the group companies of FCA (Fiat Chrysler Automobiles) and Generali. Revenue refers mostly to the sale of advertising space and the provision of various services, including printing services. The costs incurred mainly concern the purchase of advertising space further to the contract entered into with Editrice La Stampa S.p.A. for national advertising sales. Financial expense refers to Intesa SanPaolo Group companies and Mediobanca - Banca di Credito Finanziario S.p.A. Group companies. The transactions with companies in the Intesa SanPaolo Group and the Mediobanca – Banca di Credito Finanziario S.p.A. Group relate to financial relationships involving mostly long-term credit facilities as well as leases.

There are arm’s length derivative contracts with a total nominal amount of around €249.7 million subscribed with Intesa SanPaolo Group (€189 million) and Mediobanca – Banca di Credito Finanziario S.p.A. Group (€60.7 million) for ordinary operating requirements.

In particular, in the first half of 2015, there were no transactions of “greater significance” in accordance with the Procedure on related party transactions adopted by the Company pursuant to CONSOB Regulation no. 17221/2010.

Group tax consolidation for IRES purposes. During the first six months of 2015, RCS MediaGroup S.p.A. continued to file for tax on a group basis, as permitted by Legislative Decree no. 344 dated December 12, 2003 in order to achieve tax savings by calculating tax on a single tax base, with a consequent immediate offset of tax assets and tax liabilities for the year. Intragroup transactions deriving from the group tax consolidation are based on the objectives of fairness and neutrality.

Group tax consolidation for VAT purposes in the first six months of 2015, RCS MediaGroup S.p.A. continued to make use of the rules allowing the Group filing of VAT returns with a tax asset balance of €1.6 million. The Parent transferred net tax liabilities totalling €6.1 million to the group VAT position during the first six months of 2015.

Key management personnel were identified (in accordance with IAS 24) as members of the Board of Directors and Board of Statutory Auditors and the Chief Executive Officer of the Parent, as well as the members of the Board of Directors and Board of Statutory Auditors (where applicable) and the Chief Operating Officer of the subsidiaries RCS Libri and Unidad Editorial. These personnel also include, for RCS MediaGroup S.p.A., the Chief Financial Officer, the Manager in charge of Financial Reporting, the Human Resources and Organisation Director, the Group Marketing & New Business Manager, (former Chief Digital Officer of RCS MediaGroup S.p.A.) and the heads of the Media Italy and the Advertising and Events segments of RCS MediaGroup S.p.A.

The required information on their ordinary remuneration in the various forms paid is shown below.

(€/millions) Ordinary personnel Other current S ervice costs expense liabilities

Board of Directors - fees (0.5) - 0.0

Board of Statutory Auditors - fees (0.1) 0.1

Chief Executive Officers and Chief Operating Officers - other remuneration (1.7)

Executives (0.9)

Total related parties (0.6) (2.6) 0.1

Reported total (426.9) (165.4) 134.5 % of the reported total 0.1% 1.6% 0.1%

“Personnel expense” includes €2.6 million in remuneration paid to key management personnel. Personnel expense referring to related parties accounted for 1.6% of total personnel expense.

These chief operating officers of subsidiaries do not own any shares of the Parent or the subsidiaries.

There are also commitments to key management personnel amounting to €4.4 million and to other related parties amounting to €26.1 million, as indicated in note 36.

Related parties of RCS MediaGroup S.p.A.

The following table shows the amount and proportion of related party transactions and balances included in each relevant heading of the statement of financial position and income statement.

Statement of financial position - assets

Other Equi ty Non-current Current Non-current Trade receivables Current tax investments financial financial assets held receivables and current assets at cost assets assets for sale assets Subsidiaries 1,207.6 - 14.2 0.1 8.1 47.5 - Associates 10.9 0.3 28.5 - - 3.9 21.1 Supplementary pension fund for executives - - - 0.1 - - - Sub-holdings and their parents - - 1.7 - - - ( 0.5) Other related parties (1) - - 0.1 - - - - Total related parties 1,218.5 0.3 44.5 0.2 8.1 51.4 20.6 Reported total 1,218.5 3.0 201.2 35.2 15.4 51.4 20.3 % of the reported total 100.00% 10.00% 22.12% 0.57% 52.60% 100.00% 101.48% (1) Refers mainly to transactions with key management personnel and their close family members, as specified below.

Statement of financial position - liabilities

Financial Non-current Other non- Bank loans Current liabilities Current tax Trade Other current financial current and financial Commitments recognised for liabilities payables liabilities liabilities liabilities overdrafts liabilities derivatives Subsidiaries 85.0 - 2.0 - 446.5 11.8 13.8 6.0 28.6 Associates - - - - 2.8 - 3.4 2.6 - Sub-holdings and their parents 183.0 12.3 - 19.1 4.7 - 10.4 - 30.7 Other related parties (1) ------0.2 2.2 Total related parties 268.0 12.3 2.0 19.1 454.0 11.8 27.6 8.8 61.5 Reported total 520.3 13.5 4.2 42.6 472.3 11.9 198.2 87.9 84.3 % of the reported total 51.51% 91.11% 47.62% 44.84% 96.13% 99.16% 13.93% 10.01% 72.95%

(1) Refers mainly to transactions with key management personnel and their close family members, as specified below. * Include €22.8 million relating to sureties to guarantee the bank credit facilities for subsidiaries.

Income statement

Profit (loss) Other gains from assets Other Other Raw materials Personnel Financial Financial (losses) on held for sale Revenue operating operating and services expense income expense financial and income expenses assets/liabilities discontinued operations Subsidiaries 9.9 ( 34.7) - 5.4 - 1.2 ( 6.9) ( 18.5) - Associates 127.8 ( 9.1) - 0.6 ( 0.1) 0.1 - ( 0.1) 1.1 Supplementary pension fund for executives - - ( 0.2) ------Sub-holdings and their parents 3.4 ( 10.5) - - ( 0.1) 0.1 ( 8.2) - - Other related parties (1) 0.1 ( 0.5) ( 1.8) ------Total related parties 141.2 ( 54.8) ( 2.0) 6.0 ( 0.2) 1.4 ( 15.1) ( 18.6) 1.1 Reported total 304.4 ( 225.6) ( 88.5) 13.7 ( 11.2) 2.1 ( 23.9) ( 18.2) 1.1 % of the reported total 46.39% 24.29% 2.26% 43.80% 1.79% 66.67% 63.18% 102.20% 100.00% (1) Refers mainly to transactions with key management personnel and their close family members, as specified below.

Transactions between RCS Mediagroup S.p.A. and related parties primarily regard the provision of services, as already commented on in the note regarding the Group, which should be referred to for a more detailed analysis. In addition, it executed transactions with subsidiaries (eliminated on consolidation), primarily regarding the exchange of goods (mostly the purchase of advertising space), the provision of services (largely administrative, IT, financial, legal/corporate and tax, relating to the centralisation of these functions within Corporate Functions, as well as processing and printing services), the provision and use of funds, tax-related transactions as well as trade transactions relating to the lease of offices space and operations areas. Key management personnel were identified (in accordance with IAS 24) as members of the Board of Directors and Board of Statutory Auditors and the Chief Executive Officer of the company. That personnel also include the Chief Financial Officer, the Manager in charge of Financial Reporting of the company, the Human

Resources and Organisation Director, the Group Marketing & New Business Manager and the heads of the Media Italy and the Advertising and Events segments.

The required information on their ordinary remuneration in the various forms paid is shown below.

Personnel Other current Service costs Commitments expense liabilities

Board of Directors - fees (0.4) - - - Board of Statutory Auditors - fees (0.1) - 0.2 - Chief Executive Officer, Chief Operating Officer, Key management personnel, Manager in charge of Financial Reporting - other remuneration - (1.8) - 2.2 Total related parties (0.5) (1.8) 0.2 2.2 Reported total (138.6) (88.5) 87.9 84.3 % of the reported total 0.36% 2.03% 0.23% 2.61%

13. Assets held for sale

Assets held for sale at June 30, 2015 refer to the equity investment in Finelco Group . (44.45% of the share capital of the investee (whose transfer was deemed highly likely in 2014 and for which a preliminary sale agreement was signed on July 30, 2015 at a price of €21 million and payment established at the closing of the transaction (expected by September 2015), plus an additional sum of €1 million on verification of certain conditions by December 31, 2015. At June 30, 2015, the measurement performed at fair value less costs to sell was modified with respect to December 31, 2014 to take account of the agreed price. On June 30, 2015, the transfer of a 34,5% stake in IGPDecaux S.p.A. to JCDecaux Europe Holding SAS and IDA S.p.A. was completed. The financial impact of this transaction was roughly a gain €18 million in addition to a potential earn-out of a further €2 million within 3 years, subject to the achievement of certain objectives.

Profit from assets held for sale and discontinued operations amounted to €3.4 million in the first half of 2014, including €7.1 million relating to the capital gain realised with the sale of Block 1 of Via Solferino, net of ancillary charges and taxes due, as well as the negative contribution of IGPDecaux S.p.A. and Finelco Group in the first half of 2014.

The following tables contain the income statement figures in the first half of 2015 and the first half of 2014, as well as in the second quarters of 2015 and 2014, plus the statement of financial position balances of the assets held for sale at June 30, 2015 and December 31, 2014 relating to the investees IGPDecaux S.p.A., RCS International Advertising B.V. and Finelco Group.

Income statement for the first half of 2015 Income statement for the 2nd quarter of 2015 CORPORATE ADVERTISING TOTAL of which CORPORATE ADVERTISING TOTAL of which FUNCTIONS related parties FUNCTIONS related parties Profit (loss) from assets held for sale accrued in the period 1.1 1.1 1.1 1.1 Pre-tax profit (loss) from assets held for sale and discontinued operations 1.1 0.0 1.1 1.1 0.0 1.1 Income taxes Net Profit (loss) from assets held for sale and discontinued operations 1.1 0.0 1.1 1.1 0.0 1.1 Profit (losses) from assets held for sale and discontinued operations 0.0 0.0 Profit (loss) for the period from discontinued operations 1.1 0.0 1.1 1.1 0.0 1.1 Profit (loss) for the period from discontinued operations attributable to non-controlling interests 0.0 0.0 0.0 0.0 Profit (loss) for the period from discontinued operations attributable to owners of the parent 1.1 0.0 1.1 1.1 0.0 1.1

Income statement for the first half of 2014 Income statement for the 2nd quarter of 2014 CORPORATE ADVERTISING TOTAL of which CORPORATE ADVERTISING TOTAL of which FUNCTIONS related parties FUNCTIONS related parties

Profit (loss) from assets held for sale accrued in the period (3.6) (0.1) (3.7) (1.5) 0.9 (0.6) Pre-tax profit (loss) from assets held for sale and discontinued operations (3.6) (0.1) (3.7) (1.5) 0.9 (0.6) Income taxes Net Profit (loss) from assets held for sale and discontinued operations (3.6) (0.1) (3.7) (1.5) 0.9 (0.6) Profit (losses) from assets held for sale and discontinued operations 7.1 7.1 (0.2) 0.0 Profit (loss) for the period from discontinued operations 3.5 (0.1) 3.4 (1.5) 0.9 (0.6) Profit (loss) for the period from discontinued operations attributable to non-controlling interests 0.0 0.0 0.0 0.0 Profit (loss) for the period from discontinued operations attributable to owners of the parent 3.5 (0.1) 3.4 (1.5) 0.9 (0.6)

Statement of Financial Position at June 30, 2015 Statement of Financial Position at December 31, 2014

CORPORATE ADVERTISING CORPORATE ADVERTISING TOTAL of which related parties TOTAL of which related parties FUNCTIONS AND EVENTS FUNCTIONS AND EVENTS

Segment assets 0.0 0.0 Investments in associates and JVs 20.3 20.3 19.2 17.7 36.9 Unallocated financial assets 0.0 0.0 Unallocated tax assets 0.0 0.0 Net assets held for sale and discontinued operations 20.3 0.0 20.3 0.0 19.2 17.7 36.9 0.0 Segment liabilities Unallocated financial liabilities 0.0 0.0 Unallocated tax liabilities 0.0 0.0 Net liabilities held for sale and discontinued operations 0.0 0.0 0.0 0.0 0.0 0.0

14. Non-recurring income (expense)

Other operating Personnel Raw materials and expense and Provisions for risks and expense services income allowance for impairment Total Non-recurring expense (6.3) (1.6) (2.4) (10.3) Non-recurring income 2.2 2.2 Total non-recurring income (expense) (6.3) (1.6) 2.2 (2.4) (8.1) Reported total (165.4) (426.9) (5.6) (10.7) % of the reported total 3.8% 0.4% n.s. 22.4%

Non-recurring expense relating to personnel expense amounted to €6.3 million. This related, for €2.7 million, to Media Italy and concerns both expense allocated as a result of the trade union agreement of June 2015, individual incentives allocated for exits of white-collar workers, blue-collar workers and executives. The remaining €3.6 million refers to the personnel restructuring plans of Media Spain (€2.6 million, including expense incurred due to the change of management of the publication El Mundo), the Books segment (€0.9 million), Corporate Functions (€0.1 million) and essentially concern individual leaving incentives.

Non-recurring expense relating to raw materials and services include the costs incurred following the flooding of the Via Rizzoli offices for a total of €0.7 million, augmented by estimated expense of €0.3 million classified under the item Provisions for risks and for impairment. These costs were covered by an insurance compensation of €1 million classified as non-recurring income under the item Other operating expense and income.

The item Raw materials and services includes non-recurring expense of €0.9 million, €0.5 million of which relating to additional costs for the change of management of the publication El Mundo and €0.4 million to the restructuring of the Advertising and Events agent network due to the disengagement of the sales network in certain geographic areas.

The item Provisions for risks refers to Media Spain (€2.1 million).

The item Other operating income includes €1.2 million for the definitive release of provisions allocated as non- recurring expense for the process of rationalisation of some of Media Italy’s printing facilities.

15. Property, plant and equipment

Property, plant and equipment totalled €115 million, down €3.7 million in total compared to December 31, 2014. The decrease includes €10.3 million in depreciation, only partly offset by increases deriving from new acquisitions of €6.5 million and positive reclassifications of €0.1 million. Investments are attributable, for €2.3 million, to the Corporate Functions area due to improvements to the Via Solferino and Via Rizzoli properties and for the purchase of new hardware equipment and IT infrastructures to support digital development. Investments in the Media Italy segment rose by €1.9 million, due mainly to the purchase of equipment as part of television activities and investments increased by €1.8 million in the Books segment due to improvements (€1.6 million) made to the historic New York bookstore re-opened at its new location, and improvements (€0.2 million) to the Milan “Galleria” bookstore. Acquisitions in the Media Spain area rose by €0.5 million, due mainly to the acquisition of new IT equipment and devices.

The item includes the Via Cefalù property, for which on December 27, 2013 a preliminary sale agreement for €10.1 million was signed, subject to the Municipality of Milan’s approval of an Executive Plan for the area, expected by June 30, 2016.

16. Intangible assets

Changes in intangible assets at June 30, 2015 are summarised below:

FINITE USEFUL LIFE INDEFINITE USEFUL LIFE DESCRIPTION Development Intellectual Concessions, Assets under Other Concessions, Goodwill Goodwill TO TA L costs property licenses, development intangible licenses, arising on rights trademarks and advances assets trademarks consolidation and similar payments on and similar rights accounts rights NET BALANCE AT DEC-31-2014 4.6 3.5 320.9 5.4 1.0 123.3 35.4 14.7 508.8 Additions 0.8 9.9 2.8 13.5 Additions - internally generated 1.0 3.2 4.2 Decreases Amortisation (1.3) (1.1) (18.4) (0.3) (21.1) Impairment losses/Reversals of impairment losses (37.2) (3.5) (9.8) (0.3) (50.8) Exchange rate differences 0.1 0.1 Change in scope of consolidation Other movements 1.7 0.1 3.2 (4.3) (0.5) 0.2 NET BALANCE AT JUN-30-2015 6.0 3.3 278.5 3.6 0.7 123.3 25.6 13.9 454.9

These amounted to €454.9 million, a decrease of €53.9 million over December 31, 2014. This change reflects impairment losses of €50.8 million, amortisation of €21.1 million, only partially offset by investments of €17.7 million, reclassifications and other changes of €0.3 million. Investments refer to projects, websites, portals and licences totalling €9.3 million, mainly attributable to Corporate Functions (€7 million), the Media Spain segment (€1.7 million) and the Media Italy and Books segments totalling €0.6 million. These were augmented by investments in rights of €2 million, primarily for licences and television productions attributable to the Media Italy (€1.7 million) and Media Spain (€0.3 million) segments. These increases also included the effect of €2.2 million relating to “Concessions, licenses, trademarks and similar rights” acquired through the transfer of the business unit by DeA59 S.r.l. and the associated activities of Gazzetta Tv. Lastly, in the Books (Education) segment, investments in the design and development of textbook totalled €4.2 million. Impairment losses of €50.8 million refer, for €34.7 million, to the Media Spain segment resulting from the impairment test on the publications of the Unidad Editorial Group and for €14.9 million to the intangible assets in the Books segment, and in particular on the Education segment (€14.1 million) and the Fiction and Non-Fiction segment (€0.8 million). Lastly, goodwill in the Sfera segment of Corporate Functions was impaired by €1.2 million, also as a result of impairment testing.

Intangible assets include goodwill of €39.5 million, and goodwill arising on consolidation recorded during the acquisition of companies and allocated to intangible assets, particularly titles, in the course of the purchase price allocation, totalling €357.4 million (of which 34.5% with an indefinite life).

The breakdown of Group assets into cash-generating units, and their identification criteria did not undergo any changes with respect to the financial statements at December 31, 2014. During the first quarter, the accounting of the business combination of Polis Medialink S.r.l. was completed, leading to the identification of a surplus of the internet domains YouReporter.it and YouReporternews.it.

The cash-generating units to which goodwill and intangible assets with an indefinite useful life have been allocated are as follows:

Goodwill arising on consolidation Goodwill Concessions, licenses and trademarks Segments CGU Jun-30-2015 Dec-31-2014 Jun-30-2015 Dec-31-2014 Jun-30-2015 Dec-31-2014 Media Italy RCS Produzioni Padova 2.4 2.4 Ed. del Mezzogiorno 2.1 2.1 Polis Medialink 1.9 2.4 Hotelyo 0.5 0.5 Media Spain Unidad Editorial 9.4 9.4 123.3 123.3 Books Education 8.6 M arsilio 0.3 Corporate Functions Sfera 14.2 15.4 and Other Activities Direct 9.0 9.0 Total 13.9 14.7 25.6 35.4 123.3 123.3

The Group periodically reviews the carrying amount of intangible assets to ensure this amount is not higher than the recoverable amount, determined by using the higher of the fair value and the value in use resulting from the respective impairment tests. Consequently, on June 30, 2015 the value in use was predominantly used for the measurement, with the exception of the intangible assets of the Books cash generating unit which were meaured by taking into account the associated fair value less costs to sell. This measurement method was adopted as a result of the resolution taken by the Board of Directors on July 30, 2015, which, as part of the wider assessments of the Group’s strategy, acknowledged the communication received from Arnoldo Mondadori Editore S.p.A., for the integration of the offer sent on June 29, 2015 in relation to the purchase of the entire shareholding in RCS Libri S.p.A. and - despite reserving the right to take any decision on the transfer of the equity investment - unanimously resolved to provide the Chief Executive Officer with the mandate to continue negotiations and define the contractual aspects. In observance of the accruals principle, on continuation of the negotiations also confirmed by the aforementioned resolution and in the absence of new facts which change the course of events, the Books segment will therefore be considered a disposal group in the Interim Financial Statements at September 30, 2015 and treated in line with the indications of IFRS 5. However, it was deemed appropriate to take account of these significant facts, which occurred after the date of the condensed interim financial statements to assess the measure the cash generating units by using the fair value less costs to sell as therecoverable amount .

In addition to the periodic review of the carrying amounts of the intangible assets generally on an annual basis (or half-yearly for Unidad Editorial based on the significant amounts relating to the cash generating unit), the Group conducts a review whenever there is an indication that these assets have suffered impairment.

At June 30, 2015, Unidad Editorial’s cash generating unit was subject to impairment testing, approved by Unidad Editorial’s Board of Directors on August 24, 2015. Apart from the Books sector, mentioned above, with regard to the remaining cash generating units indicated above, an analysis was carried out to identify any impairment indicators. As a result of this analysis, the Sfera cash generating unit was also subject to an impairment test.

***

The search for possible indicators of impairment regarded the main assumptions used to calculate the value in use at December 31, 2014 such as expectations over the variation in product sales and the trend in direct costs during the period used in the calculation and the discount rate (WACC). Accordingly, management placed special attention on the trend in the financial figures for the year in progress with respect to the corresponding provisional data used in the impairment testing at December 31, 2014, and analysed the trend in rates to evaluate the repercussions of said trend on the estimate of the discount rate (WACC) to be applied to expected cash flows.

Methods for calculating WACC were the same as those used at December 31, 2014. Please see the Consolidated financial statements at December 31, 2014 for full details on these methods. Analysis is provided below:

Average discount rate Segments CGU net of taxation WACC Jun-30-2015 Dec-31-2014 Media Italy RCS Produzioni Padova 7.00% 7.38% Ed. del Mezzogiorno 7.00% 7.38% Polis M edialink 7.00% 7.38% Hotelyo 7.00% 7.38% Media Spain Unidad Editorial 8.00% 8.37% Books Education 7.00% 7.38% M arsilio 7.00% 7.38% Corporate Functions and Other Sfera 7.00% 7.38% Activities Direct 7.00% 7.38%

The WACC presents a decrease of 38 basis points with respect to the WACC applied in the impairment test at December 31, 2014 (-37 basis points for Unidad Editorial’s cash generating units), essentially due to the decrease in the risk free rate. These positive effects are partially offset by a change in the debt equity structure net of the effect of the variation in the Beta coefficient.

***

With reference to the Unidad Editorial cash generating unit, the intangible assets amounted to €409.5 million (of which €132.7 million with an indefinite useful life), or approximately 81% of the Group’s total intangible assets. Given the significance of these figures, the impairment test was organised with the assistance of an advisory firm, already used to carry out the test in 2014. The valuation of the goodwill was carried out using the value in use by means of applying the discounted cash flow method. The cash flows used for the test are based on the budget figures for 2015 and the projections for the period 2016-2019, both updated in light of the results reported at June 30, 2015. These cash flows reflect not only the savings plan already in place, but a compound annual average growth rate (CAGR) for the revenue in the explicit forecast period of 6%. An increase is forecast in revenue relating to digital versions, correlated to the decrease in the circulation of print editions of the newspapers, and new projects are expected to get up to full speed (a clear increase is forecast in the internet contribution by the end of 2019). The updated projections also envisage a gradual increase in advertising revenue, in line with the expectations for an economic pick up in the country. The incidence of corporate costs is expected to remain stable in relation to turnover throughout the period covered by the Business Plan. In particular, the financial forecasts used in the impairment test have been prepared by taking as a reference base the latest parameters available from official sources and relating to both medium-term macroeconomic expectations of Spain (Source: IMF) and to the expected trends in the markets in which the Unidad Editorial Group operates, or rather Media and Publishing, TV, Internet (Source: I2P processed by Media Hot Line, Arcemedia, AIMC, OJD, PWC), supplemented with specific business assumptions formulated by the management of Unidad Editorial, including in relation to the positioning and specificity of the products of Unidad Editorial.

These forecasts were, on the whole, corroborated by an Independent Business Review performed by a leading audit company and subject to examination by the Board of Directors of the company concerned on July 28, 2015 independently and prior to the approval of the impairment test, which took place on August 24, 2015 and finally approved by the Parent’s Board of Directors on August 25, 2015. The WACC applied was 8% after taxes, 37 basis points lower than the WACC applied in the impairment test at December 31, 2014. The change is essentially due to the decrease in the risk free rate. These positive effects were partially offset by a change in the debt equity structure, net of the variation in the Beta coefficient.

The market risk premium was evaluated using the Practitioners method (Guatri-Bini) with the objective of avoiding a “duplication” of country risk (already reflected in the Spanish Risk Free Rate – Bonos – whose estimate is made using the average yields from 10-year Spanish Government bonds as a reference, over the reference time period of one year. The growth rate (g) adopted for the years following the explicit forecast period is assumed to be zero in nominal terms (negative in real terms due to inflation) and the terminal value in the goodwill impairment test is calculated with an infinite time period, consistently with last year. The calculated discount rate was compared with the estimated WACC of the main Spanish comparables of Unidad Editorial (Source: Equity researches), carried out by market analysts. The combined rate (WACC and g), calculated as the median of the values published by market analysts, is in line with the rate used for the Unidad Editorial impairment test.

The discounted cash flow method applied to the carrying amount of the cash generating unit (after impairment losses and reversals of impairment losses carried out on the publications) did not show the need to apply any impairment losses at June 30, 2015, highlighting a recoverable amount €206.9 million higher than the carrying amounts of the cash generating unit.

A summary of the main data resulting from the sensitivity analysis is shown below, which is an integral part of the measurement of Unidad Editorial, showing the change in the excess recoverable amount with respect to the carrying amount which would have been brought about with changes in the WACC and in the g rate.

Growth rate -1.00% -0.50% - +0.50% +1.00% 7.50% 192.8 217.0 244.5 276.0 312.3 7.75% 176.9 199.5 225.1 254.2 287.5 8.00% 161.9 183.1 206.9 233.8 264.6

WACC 8.25% 147.8 167.6 189.7 214.8 243.2 8.50% 134.4 152.9 173.6 196.9 223.3

As suggested by the ESMA, which on October 28, 2014 published the Public Statement “European common enforcement priorities for 2014 financial statements”, the result of the impairment test was subjected to sensitivity analysis to determine how it would change with EBITDA changes for an infinite time-horizon, since this variable is a key assumption.

EBITDA % change -15.00% -10.00% - +10.00% +15.00% 7.50% 146.2 179.0 244.5 310.1 342.9 7.75% 130.1 161.8 225.1 288.4 320.1 8.00% 115.0 145.6 206.9 268.1 298.8

WACC 8.25% 100.8 130.4 189.7 249.1 278.7 8.50% 87.4 116.1 173.6 231.1 259.9

Even in the presence of a 15% change in EBITDA, the sensitivity analysis did not indicate any impairment indicators.

In addition, a second forecast scenario was developed, to be considered an integral part of the valuation. This second scenario estimates the perpetual cash flow on the basis of normalised profitability. Therefore, with reference solely to the terminal value, in order to obtain a prudential representation of the capacity to generate cash flows in the long-term, normalised EBITDA was calculated by applying the average expected weighted profit margin for the 2016-2019 period to prospective revenue for 2019. It should be noted that this profit margin level applied to the terminal year is also consistent with the sector estimates. In fact, the profit margin trend envisaged for the 2015-2019 projections is aligned to the first quartile of the distribution of the profit margin of comparables. This valuation would lead to a recoverable amount around €168 million higher than the carrying amounts.

The publications were measured at fair value less costs to sell, by applying the Relief from Royalty method. This method establishes that the value of an intangible asset is equal to the present value of the amount that a company, if it did not possess the asset in question, would be ready to pay to have an identical asset under concession or license. The afore mentioned method entails using parameters taken from market observation such as information on royalty rates, normally deduced from the analysis of market transactions involving comparable assets. In particular, at June 30, 2015, this analysis involved the use of lower royalty rates than those applied at December 31, 2014. The publications were measured by projecting the assumed royalties for the remaining economic useful life. For El Mundo, the valuation was carried out in perpetuity, in line with this publication’s classification as an intangible asset with indefinite useful life. This measurement was classified at level 3 in the fair value hierarchy on the basis of the parameters used in the valuation techniques. Applying that method resulted in an estimated value for the publications generally lower than the net carrying amount by €34.7 million (net of the reversal of an impairment loss of €1.1 million on the publication Expansion).

***

The gradual disengagement from publishing activities in the Chinese area is envisaged for the Sfera cash generating unit, considering that in the performance of the impairment test, it gave rise to impairment losses of €1.2 million on goodwill. The impairment test was carried out with the assistance of an advisory firm. The cash flow projections were drawn up for the period starting from the second half of 2015 to 2018. The growth rate (g) adopted for the years following the explicit forecast period is assumed to be zero in nominal terms and the terminal value is calculated with an infinite time period, consistently with last year. These cash inflows and outflows reflect a compound annual average growth rate (CAGR) for the revenue in the explicit forecast period of 10.6%. In addition to a gradual disengagement from publishing activities in China, a shift is expected in the product mix towards digital and e-commerce, also in consideration of the decrease in the traditional sales channels (newsstand and subscriptions). Margins are expected to grow starting from the first year of the explicit forecast period due to the revision of the cost structure of the Italian division and the creation of a single hub for the production of online as well as off-line content. The main countries that contribute to the overall profit margin are Italy and Mexico.

***

As regards the Books segment, the measurement performed at fair value less costs to sell led to overall impairment losses on intangible assets with an indefinite life of €14.9 million, of which €8.9 million relating to the full impairement loss on the goodwill of Education (€8.6 million) and Marsilio (€0.3 million). Lastly, it should be pointed out that the Books segment represents an operating segment pursuant to IFRS 8.

17. Financial assets and deferred tax assets

Jun-30-2015 Dec-31-2014 Change Available-for-sale financial assets 5.1 4.6 0.5 Investments in associates and joint ventures 51.7 48.5 3.2 Financial receivables and other non-current assets 24.8 24.9 (0.1) Financial assets recognised for derivatives - - - Total 81.6 78.0 3.6 Deferred tax assets 158.7 147.8 10.9

Total 240.3 225.8 14.5

Available-for-sale financial assets are generally measured at fair value. Assets for which no fair value is available are recognised at cost, possibly net of impairment losses. The increase of €0.5 million since December 31, 2014 is attributable to the reversal of the impairment loss on the equity investment held by RCS Mediagroup S.p.A. in the Istituto Europeo di Oncologia (European Institute of Oncology). An increase was also recorded, attributable to the purchase of 10% of the share capital of the company Wouzee Media S.L. by Media Spain (€0.2 million), which was offset by the impairement losses on some investees camed out by Corporate Functions.

Investments in associates and joint ventures amounted to €51.7 million, up €3.2 million with respect to December 31, 2014. The increase refers to the positive net result of investees (€0.7 million), partly offset by the transfer of the equity investment in Digital Accademia Holding S.r.l. by the subsidiary Marsilio Editori S.p.A. (€0.5 million) and by the distribution of dividends (€0.3 million). The item “Other movements” (up €3.2 million) mainly includes the reclassification of the investee RCS International Advertising B.V. from assets held for sale. In the income statement presented for comparison, relating to the first half of 2014, the loss of RCS International Advertising B.V. (€0.02 million) was classified in the Profit (loss) from assets held for sale and discontinued operations.

The carrying amounts relating to the investments in joint ventures and associates are provided below.

Investments in Investments in Total joint ventures associates Balance at Dec-31-2014 1.8 46.7 48.5 Share of profit 0.5 0.2 0.7 Acquisitions/to cover losses 0.1 0.1 Transfers/reimbursements (0.5) (0.5) Dividends distributed (0.2) (0.1) (0.3) Other movements 2.9 0.3 3.2 Balance at Jun-30-2015 5.1 46.6 51.7

At June 30, 2015, investments in joint ventures, totalling €5.1 million (€1.8 million at December 31, 2014), were accounted for using the equity method and include the equity investments in m-dis Distribuzione Media S.p.A., Edigita S.r.l. and RCS International Advertising B.V.. At June 30, 2015, equity investments in associates totalling €46.6 million (€46.7 million at December 31, 2014), were accounted for using the equity method and mainly include the equity investment in Corporacion Bermont.

Please see note 11 Segment reporting, for an analysis of the carrying amounts and the results byoperating segment .

Financial receivables and other non-current assets were essentially stable.

Deferred tax assets increased by €10.9 million, attributable primarily to the Parent in relation to the tax loss from Italian tax consolidation (€9.8 million) and the Media Spain segment (€1.2 million).

18. Inventories Inventories amounted to €94.7 million at June 30, 2015, marking an increase of €15.9 million over December 31, 2014, attributable to the Books segment. In particular, there were increases in finished products (totalling €14.1 million) attributable to the Education segment (€9.5 million), due to the seasonal nature of sales, increases of Rizzoli International Publications (€2.6 million), as a result of the re-opening of the New York bookstore and the appreciation of the dollar against the euro and to the Fiction and Non-Fiction segment (€2 million) owing mainly to the paperback reprint campaign. Work in progress (€1.5 million) contributed to the increase in inventories, €1.2 million of which was attributable to the Books segment. Inventories of raw materials, comprised mainly of paper, were essentially stable.

19. Trade receivables

Trade receivables amounted to €368.5 million at June 30, 2015, marking a decrease of €24.1 million over December 31, 2014, mainly due to the fall in revenue. The fall in trade receivables affected almost all areas: Media Spain (down €11.3 million), Books (down €11 million), Corporate Functions (down €4 million). Trade receivables in the Advertising and Events area were essentially stable, despite highlighting an increase of €16.7 million for Sports Events, attributable mainly to the seasonal nature of the Giro d’Italia This increase was almost fully offset by the decrease in the trade receivables of the Group’s advertising concessionaire, caused by the trend in revenue. Bucking this trend was the increase in the trade receivables of the Media Italy segment (up €1.4 million), mainly due to the launch of the new TV channel Gazzetta TV.

20. Other receivables and current assets

Other receivables and current assets amounted to €95 million at June 30, 2015, falling by €4.1 million compared to December 31, 2014. The most significant aspects include the decrease in the items ‘advances to agents and authors’, in relation to lower advances to agents (down €7 million) and authors (down €1.3 million), which mainly concerned the Books (down 4.6 million) and Advertising and Events (down €3.5 million) segments. In contrast, an increase was recorded in Tax assets (up €1.3 million), i.e. VAT credits, there was an increase in other receivables (up €1.4 million), essentially attributable to Media Spain and advances to suppliers (up €0.6 million).

21. Net financial debt

Net financial debt stood at €526.3 million at June 30, 2015. Net financial debt underwent a negative change of €43.8 million with respect to December 31, 2014.

Details of the net financial debt are provided below at carrying amount and fair value.

Carrying amount Fair Value Note Jun-30-2015 Dec-31-2014 Jun-30-2015 Dec-31-2014 Financial assets Cash and cash equivalents 21.5 13.7 21.5 13.7 Other financial assets 4.0 10.2 4.0 10.2 Financial receivables 1.7 1.6 1.7 1.6 Held-for-trading securities 0.6 0.0 0.6 Total FINANCIAL ASSETS 27.8 25.5 27.8 25.5 Financial liabilities Current bank loans and overdrafts (78.1) (80.0) (78.1) (80.0) Other financial liabilities (3.3) (1.9) (3.3) (1.9) Loans: Fixed rate loans Non-current floating rate loans (429.1) (371.8) (428.9) (371.8) Current and non-current financial liabilities recognised for derivatives (13.5) (16.5) (13.5) (16.5) Floating rate finance lease payables (30.1) (37.8) (28.2) (35.2) Fixed rate finance lease payables Total FINANCIAL LIABILITIES (554.1) (508.0) (552.0) (505.4) Total net financial debt (1) (526.3) (482.5) (524.2) (479.9)

The change compared to December 31, 2014 is due essentially to the absorption of cash from core operating activities of a seasonal nature (an improvement of €30 million compared to the first half of 2014) and disbursements relating to new investments and non-recurring expense. The first half of 2015 saw the collection generated by the transfer of the equity investment in IGPDecaux (€18 million) and in Digital Accademia Holding S.r.l. (€2.4 million). The first half of 2014 benefitted from the collection relating to the voluntary conversion of savings shares to ordinary shares amounting to around €47 million.

The agreement entered into with the financing banks on August 11, 2014 for the amendment of certain terms and conditions of the Loan Agreement (for which refer to the comments in the section “Additional information required by CONSOB pursuant to Art. 114, paragraph 5 of Italian Legislative Decree no. 58/1998 of May 27, 2013 in this Half-year Report) envisages a reduction of the spreads on the A and B credit facilities by 37.5 basis points and on the C revolving credit facility by 25 basis points, in the presence of early voluntary repayment of the B credit facility of €23 million, reducing the annual synthetic cost of the loan. On June 30, 2015, Line A was reduced by €18 million with the use of net gains deriving from the transfer of IGPDecaux. In this way, the total amount of the loan fell to around €448 million. The amendment agreement referred to above also envisaged certain contractual conditions aimed at ensuring the company greater flexibility time-wise from the end of 2014 until the end of September 2015 in the sales process for the non-core assets.

The methods of measuring fair value are summarised below for the principal categories of financial instruments to which they have been applied:  derivative instruments: the standard calculation models have been used, based on market interest rates by maturity, currency and on the corresponding foreign exchange rates;  asset and liability positions: the calculation methods used for interest rate derivatives have been applied with appropriate adaptations.

The fair value of both short and medium/long-term positions has been assessed taking into account the new financial environment's impact on the credit spread.

22. Employee benefits and provisions for risks and charges These amounted to €125.9 million, marking a net decrease of €11.5 million over December 31, 2014.

Other Discounting Reclassifications provi s ions Personnel Financial to present and other 31-Dec-2014 (1) Provisions expense (2) Releases Utilisations expense val ue movements 30-Jun-2015 Employee benefits 53.7 1.0 (4.2) 0.3 (1.4) 49.4 Provisions for risks and charges 28.5 1.7 1.0 (0.6) (1.0) 0.1 (2.2) 27.5 Current portion of provisions for risks and charges 55.2 8.6 3.8 1.0 (2.3) (8.9) (8.4) 49.0 Total 137.4 8.6 5.5 3.0 (2.9) (14.1) 0.3 (1.3) (10.6) 125.9

(1) Includes provisions classified in the item Other (gains) losses on financial assets/liabilities and income taxes. (2) Includes provisions classified under personnel expense. The main movements in the period are analysed below:

 Provisions amounted to €17.1 million, including €8.6 million classified in the items Other gains (losses) on financial assets and taxes and duties, €5.5 million classified as provisions for risks and €3 million classified as personnel expense. The allocation to the item Other gains (losses) on financial assets includes estimated ancillary charges relating to the application of the fair value less costs to sell method to the cash generating units of the Books segment. Allocations classified under provisions for risks(€5.5 million) include €2.4 million for non-recurring expense, €1.8 million relating to the legal disputes provision, €0.9 million for provisions for sundry risks and €0.4 million for the accruals to agent’s leaving indemnity . Non-recurring expense (€2.4 million) refers to Media Spain (€2.1 million), the Verticals sector of Media Italy (€0.3 million) as a result of the damages due to the flooding of the Via Rizzoli offices, for which the insurance compensation classified under non-recurring income was received. Allocations of the legal disputes provisions were attributable mainly to the Media Italy segment (€1.1 million) and Media Spain (€0.5 million) and concern ongoing disputes with third parties. Provisions for sundry risks, amounting to €0.9 million, are mainly attributable to the Media Spain (€0.6 million) and Media Italy (€0.2 million) segments. Provisions classified under personnel expense (€3 million) concern non-recurring expense of the Media Italy segment, amounting to €2 million deriving from the trade union agreement of June 2015 and relating to further journalist exits from the publication Corriere della Sera. The remaining provisions totalled €1 million and concern almost exclusively Post-employment benefits.  Provisions for employee benefits include financial expense of €0.3 million and income for the discounting of post-employment benefits of €1.4 million, as the lower personnel expense resulting from the discounting of the total amount of the revaluation of the provision for post-employment benefits, also due to the new substitute tax rate in force from January 1, 2015.  Utilisations of €14.1 million, of which €4.2 million for payments of post-employment benefits due, €6.9 million for other costs related to employees leaving the group, in addition to €0.8 million relating to the settlement of legal disputes, €0.8 million for utilisations of the agents’ leaving indemnity, and, lastly, €1.4 million for ordinary utilisations of previous provisions made primarily by the Books segment and Corporate Functions.  Releases amounted to €2.9 million, and refer to €1.2 million for non-recurring income originating from the release of provisions allocated previously and deriving from the conclusion of the process to rationalise the production structure of some of Media Italy’s printing facilities, €1.4 million for legal disputes settled successfully and €0.3 million to ordinary recoveries of the provision for risks.  Reclassifications and other movements totalled €10.6 million, and refer to the classifications under payables as a result of the changed circumstances underlying the allocations made in due course.

23. Other non-current liabilities Other non-current liabilities totalled €5.6 million at June 30, 2015, an increase of €2.3 million over December 31, 2014, mainly due to the classification of the long-term portion of debt which arose with the Municipality of

Milan, owing to the change of use of the Solferino property, as a result of the repayment plan agreed with the Municipality at the end of the dispute (€2.1 million).

24. Trade payables Trade payables amounted to €374.2 million at June 30, 2015, marking a decrease of €21 million over December 31, 2014. This variation is attributable, for €20.8 million, to the Books segment due mainly to the seasonal trend in activities. The comparison with the data at June 30, 2014 would actually show an overall increase in the trade payables of the Books segment of just €2.1 million (up 3%). The other segments recorded a total decrease in trade payables of €14.8 million, correlated to the reduction in costs. The greatest change (down €9.3 million) is attributable to the Media Spain segment. The Sports Event segment recorded a contrasting trend, with an increase of €14.6 million in trade payables, due to the seasonal nature associated with the Giro d’Italia.

25. Other current liabilities Other current liabilities amounted to €134.8 million at June 30, 2015, marking an increase of €8.6 million over December 31, 2014. This variation is attributable to deferred income (up €4.8 million), mainly relating to the Advertising and Events segment (up €3.1 million), payables to employees (up €4.5 million) mainly for holidays accrued and not taken, the recognition of the payable to RCS International Advertising (up €2.6 million) and other payables (up €0.9 million). The latter increase originated from contrasting phenomena: an increase arising from the settlement of a dispute with INPGI (up €4.7 million), the decrease arising from the classification of the long-term portion of the payable to the Municipality of Milan, owing to the change of use of the Solferino property, as a result of the repayment plan agreed with the Municipality at the end of the dispute (down €2.1 million) as well as the payment of a first portion (down €1 million). Lastly, a decrease was recorded in social security charges payables due to the tax authorities (down €5.7 million).

26. Increase (decrease) in employee benefits and provisions for risks and charges reported in the statement of cash flows

The overall increase reported in the statement of cash flows excludes the effect of discounting provisions to present value, which has also been netted of net interest received/paid. This item does not include the reclassification related to the recognition of the amounts due to INPGI and to employees and ordinary recoveries (see note 22).

Change in scope Discounting and to present Note Dec-31-2014 Jun-30-2015 reclassifications Releases value Change Employee benefits 22 53.7 49.4 1.1 (3.2) Provisions for risks and charges 22 83.7 76.5 10.6 2.9 (0.1) 6.2 Total 137.4 125.9 10.6 2.9 1.0 3.0

27. Changes in working capital reported in the statement of cash flows

Jun-30-2015 Jun-30-2014 Change in working capital 2.5 (30.5) Adjustments to capital expenditure for cash outflows 1.2 0.3 Reclassification of provisions (10.6) (3.8) Change in scope of consolidation 8.3 Reversal of non-monetary changes (5.2) 4.1 Total (12.1) (21.6)

This item has been adjusted to exclude movements not attributable to operations deriving, in particular, from the adjustment to trade payables for capital expenditure not settled in cash in the period under review. The item does not include the non-monetary changes deriving from the recognition of the payable relating to items previously posted to provisions for risks.

28. Capital expenditure in property, plant and equipment and intangible assets reported in the statement of cash flows

This item amounted to €24.2 million and refers to capital expenditure made in the first six months of 2015, minus purchases not affecting cash flow, goodwill arising on consolidation already included in the outlay for the equity investments, plus capital expenditure recorded in the prior year but paid in the period under review. The capital expenditure reported in the statement of financial position is reconciled with that included in the statement of cash flows for the first half of 2015 as follows:

Note Jun-30-2015 Jun-30-2014 Capital expenditure in intangible assets 16 (17.7) (20.3) Capital expenditure in property, plant and equipment 15 (6.5) (3.7) Total (24.2) (24.0) Adjustments to capital expenditure for cash outflows (9.6) (8.9) Business combinations 1.9 4.2 Total (31.9) (28.7)

29. Proceeds from the sale of equity investments reported in the statement of cash flows

The item amounted to €20.3 million, and refers to the transfer of the equity investment in IGPDecaux S.p.A. for around €18 million and, for the remainder, to the transfer of the equity investment in Digital Accademia Holding S.r.l by the subsidiary Marsilio Editori S.p.A..

30. Net change in financial liabilities and other financial assets reported in the statement of cash flows

This item refers to the monetary changes included in net financial debt. As required by IFRS, current bank loans and overdrafts form part of the change in cash and cash equivalents.

The reconciliation with the changes in the net financial debt is provided below:

Note Jun-30-2015 Jun-30-2014 Change in net financial debt 21 43.8 43.9

Change in cash and cash equivalents (4.6) 10.2 Non-monetary change in derivatives 3.5 (0.5) Adjustments to investments for lease principal 8.4 8.6 Non-monetary change in results of financing activities (3.9) Reversal of non-monetary changes (0.9) (1.0) To t a l 46.3 61.2

31. Cash and cash equivalents The balance of cash and cash equivalents in the statement of cash flows, net of current account overdrafts, was a negative €29.8 million at June 30, 2015 (a negative €5.3 million at June 30, 2014).

32. The “Treasury shares and Equity Transaction” reserve This reserve is recognised as a deduction from equity and amounted to €174 million. Treasury shares at June 30, 2015, unchanged with respect to last December 31, amounted to €27.1 million, while goodwill arising from the acquisition of non-controlling interests in already controlled investees, representing equity transactions, amounted to €146.9 million, a decrease of €0.5 million. The change mainly derives from the adjustment to the value regarding the put option granted to third parties for 43.71% of the share capital of Marsillio Editori S.p.A..

33. Fair value reserve The Fair value reserve totals -€1.4 million, and includes €8.1 million from the hedging reserve and €0.4 million from the reserve for the actuarial gains/losses on Post-employment benefits, both inclusive of the related tax effect. In contrast, the translation reserve was a positive €7.1 million.

34. Tax effect of other interim consolidated comprehensive income The tax effect of other comprehensive income is composed as follows:

2nd quarter 2015 2nd quarter 2014 (1) June 30, 2015 June 30, 2014 (1) Gross Tax Net Gross Tax Net Gross Tax Net Gross Tax Net Other comprehensive income (expense): amount benefit/(charge) amount amount benefit/(charge) amount amount benefit/(charge) amount amount benefit/(charge) amount

Reclassifiable to profit (loss) for the year: Gains (losses) on foreign currency translation of foreign operations (1.1) 0.0 (1.1) 0.2 0.0 0.2 1.6 0.0 1.6 0.2 0.0 0.2 Gains (losses) on cash flow hedges 2.2 (0.6) 1.6 0.2 (0.1) 0.1 3.7 (1.0) 2.7 (0.5) 0.1 (0.4) Share of comprehensive income of equity-accounted investees 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Fair value gains (losses) on available-for-sale financial assets 0.0 0.0 0.0 (0.1) 0.0 (0.1) 0.0 0.0 0.0 0.0 0.0 0.0 Actuarial (loss)/gain on defined benefit plans 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total other comprehensive income (expense) 1.1 (0.6) 0.5 0.3 (0.1) 0.2 5.3 (1.0) 4.3 (0.3) 0.1 (0.2)

(1) The second quarter of 2014 and June 30, 2014 were amended to reflect the application of IFRS 5 to the amounts relating to the investees IGP Decaux, transferred on June 30, 2015, and Finelco Group, whose preliminary sale contract was signed on July 30, 2015.

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35. Income statement: analysis by quarter In order to appreciate the seasonality of the Group’s activities, the performances by quarter are summarised below:

(€/millions) 1st quarter 2nd quarter 3rd quarter 4th quarter Year

2015 2014 2015 2014 2014 2014 2014 (1) (1) (1) (1) Revenue 256.5 262.9 335.4 348.2 310.4 357.8 1,279.4 Distribution revenue 134.1 134.8 153.1 153.3 196.9 173.5 658.5 Advertising revenue 96.3 101.1 139.7 149.7 90.6 149.8 491.2 Other publishing revenue 26.1 27.0 42.6 45.2 22.9 34.5 129.7 Operating expenses (195.2) (202.6) (223.6) (241.9) (225.8) (219.8) (890.1) Personnel expense (80.0) (100.3) (85.4) (85.7) (65.6) (73.8) (325.5) Allowance for impairment (2.6) (4.1) (2.6) (2.9) (4.0) (7.6) (18.6) Provisions for risks (2.1) (1.8) (3.4) (1.0) (2.2) (10.2) (15.2) Gros s operating profit (loss) (23.4) (45.9) 20.4 16.7 12.8 46.4 30.0 Amortisation of intangible assets (10.0) (8.6) (11.0) (9.2) (9.5) (12.0) (39.3) Depreciation of property, plant and equipment (5.2) (5.4) (5.2) (5.4) (5.3) (5.5) (21.5) Depreciation of investment property (0.2) (0.2) (0.2) (0.3) (0.2) (0.2) (1.0) Impairment losses on non-current assets (0.3) - (50.5) (6.9) (1.9) (12.9) (21.7) Operating profit (loss) (39.1) (60.1) (46.5) (5.1) (4.1) 15.8 (53.5) Net financial expense (8.9) (10.2) (9.4) (10.6) (10.1) (10.4) (41.4) Gains (losses) on financial assets/liabilities (0.2) 0.0 (7.9) 0.0 (1.9) (0.5) (2.3) Share of profits (losses) of equity-accounted investees 0.3 (0.3) 0.5 (1.3) (0.2) 0.5 (1.4) Profit (loss) before tax (47.9) (70.6) (63.3) (17.0) (16.3) 5.4 (98.6) Income taxes 12.3 12.5 2.2 1.4 (3.1) (6.5) 4.3 Loss from continuing operations (35.6) (58.1) (61.1) (15.6) (19.4) (1.1) (94.3) Profit (loss) from assets held for sale 0.0 3.9 1.1 (0.6) (3.7) (15.7) (16.1) Loss before non-controlling interests (35.6) (54.2) (60.0) (16.2) (23.1) (16.8) (110.4) (Profit) loss attributable to non-controlling interests 0.4 0.3 (0.2) 0.1 0.0 (0.9) (0.4)

Loss for the period (35.2) (53.9) (60.2) (16.1) (23.1) (17.7) (110.8)

(1) The income statement for the 1st, 2nd and 3rd quarters of 2014 were amended to reflect the application of IFRS 5 to the amounts relating to the investees IGP Decaux, transferred on June 30, 2015, and Gruppo Finelco, whose preliminary sale agreement was signed on July 30, 2015.

36. Commitments Commitments were detailed in the notes to the consolidated financial statements at December 31, 2014, to which reference should be made for a more in-depth analysis. In the first six months of 2015, the main guarantees given highlighted the following trends:

 Sureties increased by €1.1 million, mainly due to the organisation of sports events. A total of €10.6 million was entered into with related parties.  Endorsements decreased by €2.6 million, attributable to Media Spain primarily for the lower amount of guarantees given for investments in new media and for on-line game licences. Commitments totalling €9.3 million have been entered into with related parties.  Other guarantees decreased by €1.5 million, principally due to lower amounts of guarantees given in favour of associates by Unidad Editorial. Commitments totalling €6.2 million have been entered into with related parties.  Other commitments entered into with related parties amounted to €4.4 million, a stable performance.

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37. Events after the reporting period Please refer to the specific section in this Half-year Report for comments on events that occurred after the close of the first six months of 2015.

Milan, August 25, 2015

On behalf of the Board of Directors:

Chairman Maurizio Costa (Signed on original)

Chief Executive Officer Pietro Scott Iovane (Signed on original)

102

STATEMENT PURSUANT TO ARTICLE 154 BIS, PARAGRAPH 5 OF THE CONSOLIDATED FINANCE ACT

103

Statement on the Condensed interim consolidated financial statements pursuant to Art. 154 bis of Legislative Decree no. 58/98

1. The undersigned, Pietro Scott Iovane, Chief Executive Officer, and Roberto Bonalumi, Manager in charge of Financial Reporting for RCS MediaGroup, hereby state, also taking account of the provisions of paragraphs 3 and 4, Art. 154-bis of Legislative Decree 58 dated February 24, 1998: - the adequacy in relation to the company's characteristics and - the effective application, of the administrative and accounting procedures in preparing the condensed interim financial statements, during the first half of 2015.

2. The assessment of the adequacy of the administrative and accounting procedures for preparing the condensed interim consolidated financial statements at June 30, 2015 was carried out on the basis of the process defined by RCS MediaGroup, in line with the Internal Control – Integrated Framework model issued by the Committee of Sponsoring Organisations of the Treadway Commission as the reference framework generally accepted at international level.

3. It is also stated that: 3.1 the condensed interim consolidated financial statements of RCS MediaGroup at June 30, 2015: a) have been prepared in accordance with the International Financial Reporting Standards endorsed by the European Union pursuant to EC Regulation no. 1606/2002 of the European Parliament and Council dated July 19, 2002; b) correspond to the book results and accounting records; c) are suitable to provide a true and fair view of the issuer's statement of financial position and results of operations and cash flows of the issuer and of the group of companies included in the consolidation;

3.2 the report on operations contains a reliable analysis of references to significant events that occurred in the first six months of the year and their impact on the Condensed interim consolidated financial statements, together with a description of the principal risks and uncertainties for the remaining six months of the year. The report on operations also includes a reliable analysis of the information on significant transactions with related parties.

Milan, August 25, 2015

Chief Executive Officer Manager in charge of Financial Reporting Pietro Scott Iovane Roberto Bonalumi (Signed on original) (Signed on original)

104

ANNEXES

105

LIST OF THE GROUP EQUITY INVESTMENTS AT JUNE 30, 2015

106

Fully consolidated companies

REGISTERED BUSINESS SHARE/QUOTA % consolidated HELD COMPANY NAME CURRENCY % held directly OFFICE SEGMENT CAPITAL by Group BY

Corporate Functions and Other Activities - Corporate division GFT NET S.r.l. in liquidation Milan Apparel EUR 100,000.00 100.00 RCS MediaGroup S.p.A. 100.00 RCS Investimenti S.p.A. Milan Finance EUR 39,129,066.00 99.67 RCS MediaGroup S.p.A. 99.67 RCS International Newspapers B.V. Amsterdam Publishing EUR 6,250,000.00 100.00 RCS MediaGroup S.p.A. 100.00 RCS Factor S.r.l. in liquidation Milan Factoring EUR 100,000.00 90.00 RCS MediaGroup S.p.A. 90.00

Corporate Functions and Other Activities - Childhood Verticals Feria Bebe S.L. Barcelona Publishing EUR 10,000.00 60.00 Sfera Editores Espana S.L. 60.00 Rizzoli Sfera International Advertising (Beijing) Co. Ltd. Beijing Publishing EUR 2,575,000.00 95.00 RCS MediaGroup S.p.A. 95.00 Rizzoli Sfera International Convention & Exhibition (Beijing) Co. Ltd. Beijing Publishing RMB 5,000,000.00 85.50 Rizzoli Sfera International Advertising (Beijin 90.00 Rizzoli (Shanghai) Advertising Co. Ltd Shanghai Publishing RMB 500,000.00 98.80 Rizzoli Sfera International Advertising (Beijin 100.00 Sfera Direct S.L. Barcelona Publishing EUR 3,006.00 100.00 Sfera Editores Espana S.L. 100.00 Sfera Service S.r.l. Milan Services EUR 52,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Sfera Editores Espana S.L. Barcelona Publishing EUR 174,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Sfera Editores Mexico S.A. Colonia Anzures Publishing/Services MXN 8,807,100.00 100.00 RCS MediaGroup S.p.A. 99.99 Sfera Service S.r.l. 0.001 Sfera France SAS Paris Publishing EUR 240,000.00 66.70 Sfera Editores Espana S.L. 66.70

Corporate Functions and Other Activities - Digital Activities MyBeautyBox S.r.l. Milan Multimedia EUR 10,000.00 60.00 RCS Digital Ventures s.r.l. 60.00 RCS Digital Ventures s.r.l. Milan Multimedia EUR 118,000.00 100.00 RCS MediaGroup S.p.A. 100.00

BOOKS Adelphi Edizioni S.p.A. Milan Publishing EUR 1,040,000.00 57.99 RCS MediaGroup S.p.A. 10.00 RCS Libri S.p.A. 48.00 Librerie Rizzoli S.r.l. Milan Commerce EUR 500,000.00 99.99 RCS Libri S.p.A. 100.00 Marsilio Editori S.p.A. Venice Publishing EUR 1,300,000.00 50.99 RCS Libri S.p.A. 51.00 RCS International Books B.V. Amsterdam Publishing EUR 500,000.00 99.99 RCS Libri S.p.A. 100.00 RCS Libri S.p.A. Milan Publishing EUR 42,405,000.00 99.99 RCS MediaGroup S.p.A. (1) 99.99 Rizzoli International Publications Inc. New York Publishing USD 26,900,000.00 99.99 RCS International Books B.V. 100.00 Rizzoli Bookstores Inc. New York Publishing USD 3,498,900.00 99.99 Rizzoli International Publications Inc. 100.00

Advertising and Events Blei S.p.A (in liquidation) Milan Advertising EUR 1,548,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Consorzio Milano Marathon S.r.l. Milan Services EUR 20,000.00 100.00 RCS Sport S.p.A. 100.00 RCS Sport S.p.A. Milan Services EUR 100,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Società Sportiva Dilettantistica RCS Active Team– SSD RCS AT a r.l. Milan Services EUR 10,000.00 100.00 RCS Sport S.p.A. 100.00 RCS Sport USA Inc. New York Services USD 150,000.00 100.00 RCS Sport S.p.A. 100.00 RCS Sports and Events DMCC Dubai Services AED 100,000.00 100.00 RCS Sport S.p.A. 100.00

Media ITALY - Newspapers division Editoriale Corriere di Bologna S.r.l. Bologna Publishing EUR 1,002,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Editoriale Fiorentina S.r.l. Florence Publishing EUR 1,000,000.00 50.09 RCS MediaGroup S.p.A. 50.09 Editoriale Del Mezzogiorno S.r.l. Naples Publishing EUR 1,000,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Editoriale Veneto S.r.l. Padua Publishing EUR 1,840,000.00 51.00 RCS MediaGroup S.p.A. 51.00 Edi.T.A.A. S.r.l. Trento Publishing EUR 600,000.00 100.00 RCS MediaGroup S.p.A. 100.00 RCS Gaming Srl Milan Multimedia EUR 10,000.00 100.00 RCS MediaGroup S.p.A. 100.00 RCS Produzioni S.p.A. Milan Production EUR 1,000,000.00 100.00 RCS MediaGroup S.p.A. 100.00 RCS Produzioni Milano S.p.A. Milan Production EUR 1,000,000.00 100.00 RCS MediaGroup S.p.A. 100.00 RCS Produzioni Padova S.p.A. Milan Production EUR 500,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Trovolavoro S.r.l. Milan Advertising EUR 674,410.00 100.00 RCS MediaGroup S.p.A. 100.00

Note (1) Percentage refers to total share capital. Share of ordinary capital held: 100%.

107

Fully consolidated companies

SHARE/QUOTA HELD % held COMPANY NAME REGISTERED OFFICE BUSINESS SEGMENT CURRENCY % consolidated by Group CAPITAL BY directly

Media ITALY - Other division Polis Medialink Srl Milan Digital EUR 10,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Redazione Contenuti Digitali S.r.l. Milan Publishing EUR 100,000.00 100.00 RCS MediaGroup S.p.A. 100.00

Media ITALY - Verticals division Hotelyo S.A. Chiasso Digital CHF 100,000.00 51.00 RCS MediaGroup S.p.A. 51.00 Rizzoli (Beijing) Advertising Co. Ltd Beijing Publishing EUR 2,500,000.00 98.80 RCS MediaGroup S.p.A. 98.80

Media ITALY - Television Activities Canali Digitali S.r.l. (in liquidation) Milan Television EUR 12,750.00 99.20 RCS MediaGroup S.p.A. 99.20 Digicast S.p.A. Milan Television Production EUR 211,560.00 100.00 RCS MediaGroup S.p.A. 100.00 Digital Factory S.r.l. Milan Television EUR 500,000.00 100.00 Digicast S.p.A. 60.00 Sailing Channel S.r.l. (in liquidation) Milan Television EUR 100,000.00 100.00 RCS MediaGroup S.p.A. 100.00 Seasons S.r.l. (in liquidation) Milan Television EUR 12,750.00 100.00 RCS MediaGroup S.p.A. 100.00

Media SPAIN Baobad - Comunicações e Publicações S.A. Lisbon Radio EUR 60,200.00 99.90 Unidad Editorial S.A. 99.90 Unedisa Comunicaciones S.L.U. 0.050 Unidad Editorial Informaciòn General S.L.U. 0.025 Unidad Editorial Informaciòn Economica S.L.U. 0.025 Canal Mundo Producciones Audiovisuales de Levante S.L. (in liquidation) Valencia Television EUR 6,000.00 99.90 Unedisa Telecomunicaciones S.L.U. 100.00 Canal Mundo Radio Cataluna S.L. Barcelona Radio EUR 3,010.00 99.89 Unidad Editorial S.A. 99.99 Corporación Radiofónica Informacion y Deporte S.L.U. Madrid Radio EUR 900,120.00 99.90 Unedisa Comunicaciones S.L.U. 100.00 Ediciones Cónica S.A. Madrid Publishing EUR 432,720.00 99.30 Unidad Editorial S.A. 99.40 Ediservicios Madrid 2000 S.L.U. Madrid Publishing EUR 601,000.00 99.90 Unidad Editorial Revistas S.L.U. 100.00 Editora De Medios De Valencia, Alicante Y Castellon S.A. Valencia Publishing EUR 429,000.00 65.43 Unidad Editorial Informaciòn General S.L.U. 65.49 A Esfera dos Livros S.L.U. Lisbon Publishing EUR 5,000.00 74.93 La Esfera de los Libros S.L. 100.00 La Esfera de los Libros S.L. Madrid Publishing EUR 48,000.00 74.93 Unidad Editorial S.A. 75.00 Global Alisa, S.L. Madrid Television EUR 3,600.00 99.90 Unidad Editorial S.A. 100.00 Información Estadio Deportivo S.A. Seville Publishing EUR 154,339.91 84.89 Unidad Editorial Informaciòn Deportiva S.L.U. 84.97 Last Lap S.L. Madrid Services EUR 6,010.00 99.90 Unidad Editorial Informaciòn Deportiva S.L.U. 100.00 Last Lap Organiçao de eventos S.L. Lisbon Services EUR 30,000.00 99.90 Last Lap S.L. 99.67 Unidad Editorial Informaciòn Deportiva S.L.U. 0.33 Logintegral 2000 S.A.U. Madrid Distribution EUR 500,000.00 99.90 Unidad Editorial S.A. 100.00 Rey Sol S.A. Palma de Mallorca Publishing EUR 68,802.00 66.61 Unidad Editorial S.A. 66.67 Unedisa Comunicaciones S.L.U. Madrid Multimedia EUR 2,410,000.00 99.90 Unidad Editorial S.A. 100.00 Unedisa Telecomunicaciones S.L.U. Madrid Multimedia EUR 1,100,000.00 99.90 Unidad Editorial S.A. 100.00 Unedisa Telecomunicaciones de Levante S.L. Valencia Multimedia EUR 3,010.00 51.11 Unedisa Telecomunicaciones S.L.U. 51.16 Unidad Editorial S.A. Madrid Publishing EUR 125,896,898.00 99.90 RCS International Newspapers B.V. 73.75 RCS Investimenti S.p.A. 26.24 Unidad Liberal Radio S.L. Madrid Multimedia EUR 10,000.00 54.95 Unidad Editorial S.A. 55.00 Unidad de Medios Digitales S.L. Madrid Advertising EUR 3,000.00 49.95 Unidad Editorial S.A. 50.00 Unidad Editorial Informaciòn Deportiva S.L.U. Madrid Multimedia EUR 4,423,043.43 99.90 Unidad Editorial S.A. 100.00 Unidad Editorial Informaciòn Economica S.L.U. Madrid Publishing EUR 102,120.00 99.90 Unidad Editorial S.A. 100.00 Unidad Editorial Formacion S.L.U. Madrid Television EUR 1,693,000.00 99.90 Unedisa Telecomunicaciones S.L.U. 100.00 Unidad Editorial Informaciòn General S.L.U. Madrid Publishing EUR 102,120.00 99.90 Unidad Editorial S.A. 100.00 Unidad Editorial Juegos S.A. Madrid Multimedia EUR 100,000.00 99.90 Unidad Editorial S.A. 100.00 Unidad Editorial Información Regional S.A. (formerly Editora de Medios de Publishing EUR 4,109,508.00 98.06 Unidad Editorial S.A. 94.03 Madrid Castilla y Leon) Unidad Editorial Informaciòn General S.L.U. 4.12 Unidad Editorial Revistas S.L.U. Madrid Publishing EUR 1,195,920.00 99.90 Unidad Editorial S.A. 100.00 Veo Television S.A. Madrid Television EUR 27,328,752.00 99.90 Unidad Editorial S.A. 100.00

108

Equity-accounted investees

REGISTERED BUSINESS SHARE/QUOTA HELD COMPANY NAME CURRENCY % held directly OFFICE SEGMENT CAPITAL BY

Corporate Functions and Other Activities - Corporate division Inimm Due S.à.r.l. Luxembourg Real Estate EUR 240,950.00 RCS MediaGroup S.p.A. 20.00

Corporate Functions and Other Activities - Distribution division Consorzio C.S.I.E.D. Milan Distribution EUR 103,291.00 M-Dis Distribuzione Media S.p.A. 20.00 Liguria press S.r.l. (former GE-dis S.r.l.) Genoa Distribution EUR 240,000.00 M-Dis Distribuzione Media S.p.A. 40.00 Mach2 Press S.r.l. Milan Distribution EUR 200,000.00 M-Dis Distribuzione Media S.p.A. 40.00 RCS International Advertising B.V. Amsterdam Advertising EUR 5,000,000.00 RCS MediaGroup S.p.A. 51.00 M-Dis Distribuzione Media S.p.A. Milan Distribution EUR 6,392,727.00 RCS MediaGroup S.p.A. 45.00 MDM Milano Distribuzione Media S.r.l. Milan Distribution EUR 611,765.00 M-Dis Distribuzione Media S.p.A. 51.00 Pieroni Distribuzione S.r.l. Milan Distribution EUR 750,000.00 M-Dis Distribuzione Media S.p.A. 51.00

TO-dis S.r.l. Milan Distribution EUR 510,000.00 M-Dis Distribuzione Media S.p.A. 55.00

Trento Press Service S.r.l. Trento Distribution EUR 260,000.00 M-Dis Distribuzione Media S.p.A. 30.40

Corporate Functions and Other Activities - Digital Activities Quibee S.r.l. Turin Digital EUR 14,285.71 RCS Digital Ventures s.r.l. 30.00

Corporate Functions and Other Activities - Childhood Verticals Planet Sfera SL Barcelona Services EUR 40,000.00 Sfera Editores Espana S.L. 50.00 Beijing Gehua-Rizzoli Design Communication Co.,Ltd Beijing Services RMB 5,000,000.00 Rizzoli Sfera International Advertising (Beijing) Co. Ltd. 30.00

Advertising and Events Gold 5 S.r.l. Milan Advertising EUR 250,000.00 RCS MediaGroup S.p.A. 20.00

BOOKS Civita Tre Venezie S.r.l. Venice Museum EUR 1,014,000.00 Marsilio Editori S.p.A. 24.50 Consorzio Scuola Digitale Milan Multimedia EUR 40,000.00 RCS Libri S.p.A. 25.00 Edigita S.r.l. Milan Multimedia EUR 600,000.00 RCS Libri S.p.A. 33.33 Mach 2 Libri S.p.A. Peschiera B. Publishing EUR 646,250.00 RCS Libri S.p.A. 29.10 Skira Rizzoli Publications Inc New York Publishing USD 1,000.00 Rizzoli International Publications Inc. 49.00 Venezia Accademia Società per i Servizi Museali S.c.a.r.l. Mestre Services EUR 10,000.00 Marsilio Editori S.p.A. 25.00

Media SPAIN Corporacion Bermont S.L. Madrid Printing EUR 21,003,100.00 Unidad Editorial S.A. 37.00 Bermont Catalonia S.A. Barcelona Printing EUR 60,101.21 Corporacion Bermont S.L. 100.00 Bermont Impresion S.L. Madrid Printing EUR 321,850.00 Corporacion Bermont S.L. 100.00 Calprint S.L. Valladolid Printing EUR 1,856,880.00 Corporacion Bermont S.L. 39.58 Ediciones Globaliza, S.L. Madrid Internet EUR 69,184.00 Unidad Editorial Informacion General S.L.U. 21.57 Escuela de Cocina Telva S.L. Madrid Training EUR 61,000.00 Ediciones Cónica S.A. 50.00 Fabripress S.A.U. Madrid Publishing EUR 961,600.00 Corporacion Bermont S.L. 100.00 Impresiones y distribuciones de Prensa Europea S.A. Madrid Printing EUR 60,101.21 Corporacion Bermont S.L. 100.00 Lagar S.A. Madrid Printing EUR 150,253.03 Corporacion Bermont S.L. 60.00 Bermont Impresion S.L. 40.00 Madrid Deportes y Espectáculos S.A. Madrid Multimedia EUR 600,000.00 Unidad Editorial Informaciòn Deportiva S.L.U. 30.00 Newsprint Impresion Digital S.L. Tenerife Printing EUR 93,000.00 TF Print S.A. 50.00 Omniprint S.A. Santa Maria del Cami Printing EUR 2,790,000.00 Corporacion Bermont S.L. 100.00 Radio Salud S.A. Barcelona Radio EUR 200,782.08 Unedisa Comunicaciones S.L.U. 30.00 Recoprint Dos Hermanas S.L.U. Madrid Printing EUR 2,052,330.00 Corporacion Bermont S.L. 100.00 Recoprint Güimar S.L.U. Madrid Printing EUR 1,365,140.00 Corporacion Bermont S.L. 100.00 Recoprint Impresiòn S.L.U. Madrid Printing EUR 3,010.00 Corporacion Bermont S.L. 100.00 Recoprint Pinto S.L.U. Madrid Printing EUR 3,652,240.00 Corporacion Bermont S.L. 100.00 Recoprint Rábade S.L.U. Madrid Printing EUR 1,550,010.00 Corporacion Bermont S.L. 100.00 Recoprint Sagunto S.L.U. Madrid Printing EUR 2,281,920.00 Corporacion Bermont S.L. 100.00 Suscribe S.L. Palma de Mallorca Publishing EUR 300,000.00 Logintegral 2000 S.A.U. 22.50 TF Press S.L. Santa Cruz de Tenerife Printing EUR 3,005.06 Corporacion Bermont S.L. 100.00 TF Print S.A. Santa Cruz de Tenerife Printing EUR 1,382,327.84 Corporacion Bermont S.L. 75.00 Bermont Impresion S.L. 25.00 Unidad Liberal Radio Madrid S.L. Madrid Multimedia EUR 10,000.00 Unidad Editorial S.A. 45.00 Libertad Digital S.A. 55.00

109

Available-for-sale companies

REGISTERED BUSINESS SHARE/QUOTA HELD % held COMPANY NAME CURRENCY OFFICE SEGMENT CAPITAL BY directly

Corporate Functions and Other Activities - Corporate division Ansa Società Cooperativa Rome Publishing EUR 11,305,852.00 RCS MediaGroup S.p.A. 3.13 Cefriel S.c.a.r.l Milan Research EUR 1,057,797.70 RCS MediaGroup S.p.A. 5.46 Consuledit S.c.a.r.l. (in liquidation) Milan Publishing EUR 20,000.00 RCS MediaGroup S.p.A. 19.55 Emittenti Titoli S.p.A. Milan Finance EUR 4,264,000.00 RCS MediaGroup S.p.A. 1.46 H-Farm Ventures S.p.A. Roncade (TV) Services EUR 5,003,000.00 RCS MediaGroup S.p.A. 0.68 Immobiliare Editori Giornali S.r.l. Rome Publishing EUR 830,462.00 RCS MediaGroup S.p.A. 7.49 Istituto Europeo di Oncologia S.r.l. Milan Scientific research EUR 80,579,007.00 RCS MediaGroup S.p.A. 5.08 ItaliaCamp S.r.l. Rome Services EUR 10,000.00 RCS MediaGroup S.p.A. 3.00 SAS Mode et Finance Paris Apparel EUR 6,965,714.00 RCS MediaGroup S.p.A. 4.62

Corporate Functions and Other Activities - Distribution division Giorgio Giorgi Srl Calenzano (FI) Distribution EUR 1,000,000.00 M-Dis Distribuzione Media S.p.A. 5.00

Corporate Functions and Other Activities - Digital Activities Digital Magics S.p.A. Milan Multimedia EUR 3,409,247.00 RCS Digital Ventures S.r.l. 0.86 Mperience S.r.l. Rome Digital EUR 26,718.00 RCS Digital Ventures S.r.l. 2.00 Network Mamas S.r.l. Milan Digital EUR 10,000.00 RCS Digital Ventures S.r.l. 5.00 Trova La Zampa s.r.l Milan Digital EUR 10,000.00 RCS Digital Ventures S.r.l. 5.00 Webentually S.r.l. Brescia Digital EUR 10,000.00 RCS Digital Ventures S.r.l. 15.00 Yoodeal Ltd Crowborough Digital EUR 3,500,000.00 RCS Digital Ventures S.r.l. 2.00

Media ITALY - Newspapers division Consorzio Edicola Italiana Milan Digital EUR 60,000.00 RCS MediaGroup S.p.A. 16.66 Onering S.r.l. (in liquidation) ntegrotto Terme (P Digital EUR 10,000.00 RCS MediaGroup S.p.A. 15.00 Premium Pubblisher Network (Consortium) Milan Advertising EUR 19,425.77 RCS MediaGroup S.p.A. 20.51

Media SPAIN Cronos Producciones Multimedia S.L.U. Madrid Publishing EUR 3,010.00 Libertad Digital Television S.A. 100.00 Digicat Sis S.L. Barcelona Radio EUR 3,200.00 Radio Salud S.A. 25.00 Libertad Digital S.A. Madrid Multimedia EUR 2,582,440.00 Unidad Editorial S.A. 1.16 Libertad Digital Publicidad y Marketing S.L.U Madrid Advertising EUR 3,010.00 Libertad Digital S.A. 100.00 Libertad Digital Television S.A. Madrid Television EUR 2,600,000.00 Libertad Digital S.A. 99.66 Medios de Azahar S.A. Castellon Services EUR 500,500.00 Editora De Medios De Valencia, Alicante Y Castellon S.A. 6.50 Palacio del Hielo S.A. Madrid Multimedia EUR 1,617,837.91 Unidad Editorial S.A. 8.53 Wouzee Media S:L Madrid Multimedia EUR 14,075.00 Unidad Editorial S.A. 10.00

BOOKS SCP S.c.a.r.l. Mestre Services EUR 111,975.00 Marsilio Editori S.p.A. 8.93 Venezia Musei società per i servizi Museali S.c.a.r.l. (in liquidation) Mestre Services EUR 10,000.00 Marsilio Editori S.p.A. 17.00

Companies held for sale and sold companies

REGISTERED BUSINESS SHARE/QUOTA HELD COMPANY NAME CURRENCY % held directly OFFICE SEGMENT CAPITAL BY

Corporate Functions and Other Activities - Corporate division Consorzio Editori Radio s.c.a.r.l. Milan Services EUR 14,000.00 Virgin Radio Italy S.p.A. 25.00 Milan Services EUR 14,000.00 Radio Studio 105 S.r.l. 25.00 Milan Services EUR 14,000.00 RMC Italia S.r.l. 25.00 Edizioni Donegani S.r.l. (in liquidation) Milan Publishing EUR 10,000.00 Gruppo Finelco S.p.A. 100.00 Gruppo Finelco S.p.A. Milan Radio EUR 7,378,393.00 RCS MediaGroup S.p.A. 44.45 NCP Ricerche S.r.l. Milan Research EUR 10,000.00 Gruppo Finelco S.p.A. 100.00 Publisa S.r.l. Rome Advertising EUR 10,200.00 Gruppo Finelco S.p.A. 30.00 Radio 105 USA Corp New York Radio USD 100.00 Radio Studio 105 S.r.l. 100.00 Radio Engineering CO S.r.l. Milan Services EUR 52,000.00 Gruppo Finelco S.p.A. 100.00 Radio News Network S.r.l. Milan Publishing EUR 10,400.00 Gruppo Finelco S.p.A. 100.00 Radio Studio 105 S.r.l. Milan Radio EUR 780,000.00 Gruppo Finelco S.p.A. 100.00 RMC Italia S.r.l. Milan Radio EUR 1,100,000.00 Gruppo Finelco S.p.A. 99.99 Sing Sing S.r.l. Milan Services EUR 10,000.00 Gruppo Finelco S.p.A. 100.00 United Music S.r.l. Milan Services EUR 10,000.00 Gruppo Finelco S.p.A. 100.00 Virgin Radio Italy S.p.A. Milan Radio EUR 10,063,293.63 Gruppo Finelco S.p.A. 98.99 RCS MediaGroup S.p.A. 1.00 RMC 2 S.r.l. Milan Radio EUR 10,200.00 Gruppo Finelco S.p.A 19.00 Audiradio S.r.l. (in liquidation) Milan Services EUR 258,000.00 Gruppo Finelco S.p.A 7.50 Premium Pubblisher Network (Consortium) Milan Advertising EUR 19,425.77 Gruppo Finelco S.p.A 5.13

110

EXCHANGE RATES AGAINST THE EURO

111

EXCHANGE RATES AGAINST THE EURO

The main exchange rates used to translate financial statements drawn up in currencies other than the euro are as follows:

Spot Average Spot Average exchange rate exchange rate exchange rate exchange rate at Jun-30-2015 Jun-30-2015 at Jun-30-2014 Jun-30-2014

Canadian dollar CAD 1.38390 1.37736 1.45890 1.50288 US dollar USD 1.11890 1.11579 1.36580 1.37035 Swiss franc CHF 1.04130 1.05673 1.21560 1.22145 British pound GBP 0.71140 0.73233 0.80150 0.82134 Mexican peso MXN 17.53320 16.88873 17.71240 17.97472 Brazilian real BRL 3.46990 3.31015 3.00020 3.14987 Australian dollar AUD 1.45500 1.42608 1.45370 1.49890 Chinese renminbi CNY 6.93660 6.94081 8.47220 8.44997 United Arab Emirates dirham AED 4.10748 4.09672 5.01636 5.03326

112

RELATED PARTIES

113

Jointly controlled companies Current financial Other current Trade receivables Trade payables Financial transactions assets lia bilitie s

M-dis Distribuzione Media S.p.A. 28.1 4.0 3.3 RCS International Advertising B.v. - - 2.6 Edigita S .r.l. - - - 0.1 Planet Sfera SL 0.1

TOTAL 28.2 4.0 2.6 3.4

Current Associates Trade Current financial Other current Financial assets fina nc ia l Trade payables Commitments F ina nc ia l tra ns a c tio ns receivables assets lia bilitie s lia bilitie s

Mach 2 Libri S.p.A. 5.3 - - - 0.1 - - Fabripress S.A. (Bermont Group) 0.6 - - - 3.5 - 5.0 Gruppo Finelco S.p.A. 0.1 - - - 0.1 - - Recoprint Dos hermanas S.L.U. (Bermont Group) - - - - 2.6 - - MDM Milano Distribuzione Media S.r.l. - - - 2.2 0.1 - - Recoprint Sagunto S.L.U. (Bermont Group) - - - - 2.1 - - Bermont Catalonia S.a. (Bermont Group) - - - - 1.6 - - To -dis S.r.l. - - - 0.6 - - - C a lprint S .l. (B e rm o nt Gro up) 1. 4 1.2 Omniprint S.A. (Bermont Group) - - - - 1.1 - - TF P rint S.a. (Bermont Group) 1. 0 Recoprint Ràbade S.L.U. (Bermont Group) 0.9 Madrid Deportes y Espectáculos S.A. - - - - 0.6 - Radio Salud SA - - - - 0.1 - - Go ld 5 S .r.l. 0.1 - 0.2 - - - - Civita Tre Venezie Srl 0.1 ------Beijing Gehua-Rizzoli Design Communication Co..Ltd Inimm Due S.à.r.l. - - 0.1 - - - - Recoprint Impresìon S.L.U. (Bermont Group) 0.1

TO TAL 6.3 - 0.3 2.8 14.6 0.6 6.2

Cash and cash Other group companies (1) Trade receivables equivalents F ina nc ia l tra ns a c tio ns - As s e ts

Banca Intesa Sanpaolo Group companies 1.1 7.7 Mediobanca Group companies 0.3 FCA (Fiat Chrysler Automobiles) Group companies 1.3 P ire lli Gro up c o m pa nie s - Italmobiliare Group companies - - Generali Group companies 0.1 UnipolSai S.p.A. (formerly Fondiaria Sai S.p.A.) Group companies - TOTAL 2.8 7.7

114

Non-current Current financial Non-current Other group companies (1) financial liabilities Bank loans and Current financial liabilities financial Trade payables Commitments Financial transactions - Liabilities recognised for overdrafts liabilities recognised for liabilities derivat ives derivatives

Banca Intesa Sanpaolo Group companies 165.1 9.2 13.7 8.0 0.0 0.1 19.9 Mediobanca Group companies 19.0 3.1 3.3 0.1 FCA (Fiat Chrysler Automobiles) Group companies 10.2 P ire lli Gro up c o m pa nie s - Italmobiliare Group companies - Generali Group companies 1.0 Unipo lSai S.p.A. (fo rmerly Fo ndiaria Sai S.p.A.) Gro up co mpanies TO TA L 184.1 12.3 13.7 11.3 0.0 11.4 19.9

J o intly c o ntro lle d c o m pa nie s Raw materials and Other operating Other financial Revenue Income-related transactions services inc o m e inc o m e

M-dis Distribuzione Media S.p.A. 12 7 . 6 (8.7) 0.6 0.1

Edigita S.r.l. (0.2) - -

TOTAL 127.6 (8.9) 0.6 0.1

Other Associates Raw materials Revenue operating Income-related transactions and services inc o m e

Fabripress S.A. (Bermont Group) 0.5 (5.2) - Mach 2 Libri S.p.A. 4.3 - - C a lprint S .l. (B e rm o nt Gro up) - (2.4) - Recoprint Sagunto S.L.U. (Bermont Group) - (2.2) - Recoprint Dos hermanas S.L.U. (Bermont Group) (2.2) Omniprint S.A. (Bermont Group) - (0.9) - Recoprint Rábade S.L.U. (Bermont Group) (0.8) Bermont Catalonia S.a. (Bermont Group) - (0.8) - TF Print S.a. (Bermont Group) (0.6) Radio Salud S.A. 0.1 (0.4) - MDM Milano Distribuzione Media S.r.l. - (0.4) - Gruppo Finelco S.p.A. 0.1 (0.1) Recoprint Impresiòn S.L.U. (Bermont Group) 0.1 - 0.1 Gold 5 srl 0.1

TO TAL 5 . 2 (16.0) 0.1

115

Other group companies (1) Raw materials and Financial Other operating Revenue Income-related transactions services expense expenses

Banca Intesa Sanpaolo Group companies 2.4 (0.1) (7.8) (0.1) Mediobanca Group companies 0.3 (0.1) (1.2) FCA (Fiat Chrys ler Auto mo biles ) Gro up co mpanies 1.7 (10.3) Pirelli Group companies (0.1) Italmobiliare Group companies Generali Group companies (1.5) (0.2) Unipo lS a i S .p.A. (fo rm e rly F o ndia ria S a i S .p.A.) Gro up c o m pa nie s 0.4 TO TAL 4.8 (12.1) (9.0) (0.3)

Commitments and guarantees to related parties (€/millions) Associates 6.2 Other group companies (1) 19.9 Other related parties (2) 4.4

To t a l 30.5

116