El País America, a Regio- for Spanish Sport for the Rest of the Nal Edition with Differentiated News

INDEX

Year in review 005 1

013 PRISA, a global group 016 Mission, vision and values 018 Main figures 2 026 The transformation of PRISA 028 Business areas 056 Good Corporate Governance 076 Self-regulation and ethical codes

Commitments 079 3 and future challenges 005

087 Sustainability at PRISA 090 Dialogue and communication with stakeholders 097 Our sustainability strategy: 4 097 ê Creation and distribution of content 097 ê Responsible management: - of our professionals - of our users and digitalization - of communications - of our suppliers - of environmental resources 120 ê Social and cultural initiatives Appendix 133

Application and scope of this Report 135 Correlation of indicators with 138 5 GRI-G3.1guidelines and UN Global Compact Contacts with stakeholders 145 Year in review PRISA, a global group

4 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Year 1 in review

5 Sustainability Report 2014 1 Year in review 1 3

1. TVI celebrates its 20th Anniversary. 2. Cadena Dial hosts its annual awards. 3. The Spanish writer José Ovejero wins the Alfaguara Novel Prize 2013.

January world and bringing sport to the more specifically aimed at coverage of La- than 460 million Spanish speakers in tin America. CANAL+ content triumphs at the Gol- Latin America. den Globes with a grand total of 14 The Spanish writer José Ovejero wins awards. TVI celebrates its 20th Anniversary the Alfaguara Novel Prize 2013 for his with a series of initiatives aimed at book La invención del amor (The In- Launch of cadenaserviajes.com, the reinforcing its values and its com- vention of Love). first on-line travel magazine to bring mitment to shaping the future of Por- together opinion, news and informa- tuguese society. Cadena Dial hosts its annual awards tion, special offers on a range of travel gala at the Auditorium Santa Cruz de destinations, reviews and user expe- Tenerife “Adán Martín”. riences, as well as reports from top March travel journalists. CANAL+’s El día del Fútbol wins a Silver Promax award in the category February “Best Programme Branding Design”.

Launch of As America, the showcase Launch of El País America, a regio- for Spanish sport for the rest of the nal edition with differentiated news

7 Sustainability Report 2014 Year in review PRISA, a global group

April Emilio Morenatti and Jesús de la Ser- (GFDD) and Grupo Santillana host na, among the winners at the 30th an- the Educational Innovation Forum. The World Bank shows its support for nual Ortega y Gasset Awards for Jour- Santillana’s Sistema UNO initiative with nalism. 25 million euros in funding. June Ninth annual Latin American Forum CANAL+ exclusive premiere of the third on Education in Argentina: “New cha- El País organizes the conference “In- season of Game of Thrones. llenges facing our schools: participa- vesting in Panama” with the participation, citizenship and new literacies”, tion of the President of the Republic of Santillana Foundation gives out the organized by Santillana Foundation Panama, Ricardo Martinelli. VivaLectura awards for the most outs- and sponsored by the OEI (Organiza- tanding initiatives to foster reading, tion of Ibero-American States). CANAL+ presents 4K Day, an event at the Buenos Aires Book Fair and in focused on Ultra High Definition collaboration with the Argentinean Mi- 40 Principales Mexico hosts Evento (UHD), the very latest technology that nistry of Education and the OEI (Or- 40, the most important music festival vastly improves the quality of HD ima- ganization of Ibero-American States). in the country featuring the biggest ges. names in pop. El País organizes the conference “In- May Funglode (Fundación Global Desarro- vesting in Peru” in Lima, with the parti- llo y Democracia), the Global Founda- cipation of Ollanta Humala, president Alberto Salcedo, Juan Ramón Robles, tion for Democracy and Development of Peru.

1. 30th annual Ortega y Gasset Awards for Journalism. 2. Ninth annual Latin American Forum on Education in Argentina. 3. CANAL+ presents 4K Day. 4. “Investing in Panama” forum organized by El País. 5. “Investing in Peru” forum organized by El País.

2 5

8 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

2 3

1. CANAL+ shows its commitment to technology in the 2013-14 season. 2. UNICEF’s Spanish Committee and Santillana sign an agreement. 3. W Radio in Colombia celebrates its 10th Anniversary.

July August UNICEF’s Spanish Committee and Santillana sign an agreement to pro- TVI Intenacional begins broadcasting in CANAL+ shows its commitment to te- mote joint projects and initiatives in the United States to the country’s nearly chnology as the 2013-14 football sea- favor of education. 1.4 million people of Portuguese descent. son kicks off. 40 Principales is the official broad- 40 Principales, the leading music radio caster in Spain and a further nine brand among Spanish-speaking youth, September Spanish-speaking countries for the grows in Latin America and begins iTunes Festival 2013, held in London. broadcasting in Paraguay. El Viajero, El País’s travel supplement celebrates its 15th Anniversary with a W Radio in Colombia celebrates its Radio Continental in Argentina gets special issue. 10th Anniversary with a huge Beyoncé more nominations than any other radio concert. broadcaster at the prestigious Martín Guía del Ocio (Leisure and Entertainment Fierro Awards. Guide) is added to El País’s weekend offer.

9 Sustainability Report 2014 Year in review PRISA, a global group

1 2

3 4

1. CANAL+ renews exclusive NBA broadcast rights. 2. Ondas Awards 2013. 3. 50th Anniversary of Alfaguara. 4. Icon is brought to Spain by El País.

October of award-winning programs from over the Icon, the men’s fashion and lifestyle ma- years from SER’s back catalog. gazine, is brought to Spain by El País. El País Semanal gets a revamp, with changes to structure, news desks and design to Santillana’s Pupitre app wins Best App Santillana ratifies its partnership with better adapt to the digital environment. 2013, in the Children’s and Educational UNESCO to improve education in Latin category at the TAB Innovation Awards. America. Acciona, Basque Culinary Center and Endesa win the Cinco Días Awards for Santillana and PRISA Ediciones participa- Alfaguara kicks off the celebrations for its Business Innovation 2013. te in the Sixth International Spanish Lan- 50th Anniversary at the Guadalajara Interna- guage Congress in Panama. tional Book Fair, bringing together Mario Var- CANAL+ renews exclusive NBA broad- gas Llosa, Sergio Ramírez, Xavier Velasco cast rights and expands its range of co- and Joël Dicker. verage of the best basketball league in November the world. The prestigious Ondas Awards Gala, this El País extends its global reach with the year celebrating its 60th Anniversary, con- The Ondas Awards celebrate their 60th An- launch of an edition in Portuguese, El País tinues to identify and honor both Spanish niversary with special events and the launch Brazil, and the opening of a newsroom in and international talent in the audiovisual of Radio Ondas, which will broadcast a range São Paulo. sector.

10 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

December TVI24 closes 2013 with record audiences. The 24-hour news channel, which reinfor- The eighth annual 40 Principales Awards, ced its news service, consolidated its sche- with proceeds from the awards gala going to dules and strengthened its sports content, the project El árbol es vida (Trees are Life). recorded its best year ever with an average audience share of 1.7%. The TVI24 net- 1. Cinco Días Awards for Business Launch of CANAL+ Series, the latest addi- work also expanded broadcasts to Angola, Innovation 2013. tion to the CANAL+ premium package. Mozambique and Cape Verde. 2. Eighth annual 40 Principales Awards. CANAL+ Series is a TV channel dedica- 3. Launch of CANAL+ Series. ted exclusively to TV series, and aims to 4. As Sports Awards 2013. become the channel of reference for fans of all the top TV shows. 1 As Sports Awards 2013: winners include Marc Márquez, the Spanish women’s water polo team, Simeone and Marta Ortega.

The Extraordinary General Shareholders’ Meeting of PRISA endorses the agreement on the restructuring of financial debt that the Company had reached with all creditor banks and investment funds.

3 4

11 Sustainability Report 2014 Year in review PRISA, a global group

12 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

PRISA, 2 a global group

Mission, vision and values Main figures The transformation of PRISA Business areas Good Corporate Governance Self-regulation and ethical codes

13 Sustainability Report 2014 2 PRISA, a global group

PRISA is the world’s leading Spanish and Portuguese language media group in the fields of education, information and news, and entertainment, thanks to its multi-channel offer of high-quality products. Commitments and future challenges Sustainability at PRISA

PRISA is present in the following countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, Portugal, Puerto Rico, Spain, United Kingdom, United States, Uruguay and Venezuela.

Present in 22 countries, PRISA reaches With more than 250 websites, visited PRISA reaches more than 60 million users through its glo- monthly by 31.3 million unique users* more than 60 million users bal brands El País, 40 Principales, Santi- (84 million unique browsers**) world- llana and Alfaguara. As market leader in wide, PRISA is at the forefront of multi- through its global brands general-interest press, commercial and channel and multi-device content dis- Pay TV, spoken-word and music radio, tribution. The group has embarked on education and publishing, it is one of the an ambitious strategy of content distri- Spanish-speaking world’s largest media bution, offering products and services groups and possesses an extraordinary adapted to users’ changing consumer portfolio of assets. Its presence in Brazil habits through a wide range of devices. and Portugal and among the growing His- panic community in the US has given the group an Ibero-American dimension and has opened up a potential global market *(Source: comScore, Dec 2013) of 700 million people. ** (Source:Adobe Omniture + Netscape, Dec 2013)

15 Sustainability Report 2014 Year in review PRISA, a global group Mission, vision and values

A commitment to society is at the very core of PRISA. From the very beginning, the founders and promoters of El País have been committed to Spanish society, to defending and expanding democratic liberties, equality and civil rights for all. All too aware of this responsibility, three decades on, this commitment remains as strong and vital as ever and now embraces Ibero-America.

This vision is shared by all those who work in our organization and is evident in the work and in the day-to-day operations of all those who work for PRISA:

Independence and rigor in our role as informers, educators and commu- nicators.

Responsibility, intellectual honesty and transparency.

Pluralism and respect for all ideas, cultures and people.

PRISA headquarters in Tres Cantos. Defense of freedom, peace and the protection of the environment. companies as they strive to be both so- into a “new company”, focused not only Self-criticism aimed at achieving per- cially responsible and world leaders in on the production and distribution of qua- sonal and business improvement. the fields of education, news and enter- lity content, but also on learning more tainment in the Spanish and Portugue- about each of our stakeholder groups, Creativity and innovation in the deve- se-speaking markets. We are thus res- as well as on the use of new technolo- lopment of business. ponsive to the needs and expectations gies. This new paradigm places the user of a free, responsible, respectful and at the center of our business model and Attention to the demands and con- sustainable society. requires us to commit ourselves to a cul- cerns of society at all times. tural transformation if we are to remain Meanwhile, the rapid changes taking leaders in our sector. Responsible, efficient and sustainable place in the media and content sector management, which generates added have spurred PRISA’s transformation To this end, we never lose sight of a ran- value for both the shareholder and for ge of crucial values: society as a whole A commitment to society People: everything we do revolves These values have always been embra- is at the very core around people. ced by the teams of professionals working at El País and have subsequently of PRISA Creativity: creativity is our most basic been taken on board by all the Group’s tool in our ongoing drive to innovate.

16 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

El País Editorial Code

“El País is an independent newspaper and listen to those holding different “El País must also champion solida- with a clear international vocation and views and to reject the idea that the rity, as in today’s world, at least in a defender of plural democracy based end justifies the means. In our times, Western countries, every member of on liberal and social principles. It is liberal also implies the belief in popular society is a participant in the gene- committed to the defense of the de- sovereignty, that is, in the equal rights ral welfare. For this reason, it must mocratic and legal order established of each and every individual citizen”. defend the establishment and proper by the Constitution. Within this fra- administration of a Social Security mework, it embraces all tendencies, We must therefore defend plural de- system and a fair and just sharing with the exception of those seeking mocracy, exercised through universal of wealth through the proper imposi- to achieve their ends through violen- suffrage, as the least bad mechanism tion of taxation without inhibiting in- ce (…) the paper is dedicated to pro- invented for the exercise of this sove- dividual growth. It must also defend viding daily accurate, complete and reignty. We must recognize the funda- the environment, as the patrimony high quality information of interest to mental rights of all people, while de- of all humanity; it must defend civic the public, thus enabling the reader nouncing all types of totalitarianism, virtues, and endeavor to combat all to comprehend reality and form their as the inescapable consequence of corruption, fraud or abuse, and pri- own opinion of the world.” these beliefs”. vate and state monopolies. The solidarity of all Citizens before the law “El País should be a liberal, indepen- “El País must also be an independent is also its mission, for which reason dent, socially responsible, national newspaper, not party to or mouthpie- we consider the independence of the and European newspaper, attentive to ce for political, financial or cultural judiciary to be fundamental”. the changes taking place in Western organizations or groups, and, while it society.” defends free enterprise and depends José Ortega Spottorno, on revenues from its advertisers, the March 5, 1977. “Liberal, to my understanding, means newspaper rejects all conditions from two things: to be willing to understand economic pressure groups”.

Dedication: our dedication guaran- environment in order to maintain our We aspire to be the global tees value, quality and excellence. users’ trust. benchmark in culture and Integrity: we see integrity as encom- education in Spanish and passing honesty, rigor, self-criticism, Portuguese responsibility, independence and im- partiality.

Pluralism: we see pluralism as embracing freedom of expression, transparency and diversity.

Connectivity: we are aware of the importance of being connected and being accessible in order to share and collaborate.

Security: the new digital paradigm requires us to guarantee a secure

17 Sustainability Report 2014 Year in review PRISA, a global group Main figures

Operating revenues (in millions of euros)

2013 2,709

2012 2,652

2011 2,714

Contribution to revenue by business area

Pay TV suscriptions 32%

Books and education 27%

Advertising 19%

Other operators suscriptors 9%

Magazines & newspaper sales 5%

Audiovisual & program rights 1%

Special promotions 1%

Other revenue 6%

Proforma data with no special items

18 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Revenue source by geographic region (in millions of euros)

2013 2012 2011

Spain 1,772 (65%) 1,740 (66%) 1,836 (68%)

International 937 (35%) 912 (34%) 878 (32%)

2013

Spain 65%

International 35%

EBITDA (in millions of euros)

2013 323

2012 477

2011 493

EBIT (in millions of euros)

2013 80

2012 241

2011 273

Proforma data with no special items

19 Sustainability Report 2014 Year in review PRISA, a global group

Digital audiences -in terms of pageviews- derived from strictest user-security policy. Beyond mobile phones, 15% higher than in complying with current privacy regula- Once again, figures for digital opera- December 2012 (source: Omniture De- tions, PRISA considers that maximum tions confirm PRISA’s position as one of cember 2013). security for those who place their trust the world’s leading media groups, with in us is a value in itself. the Group ranked first among Spanish- Much of this mobile traffic corresponds language media. to the browsing of web pages, but a Once again this year, the registry of significant part of such traffic is via spe- new users via social media made up a In 2013, PRISA reported an audience cific applications for smartphones and significant proportion of new registered of 31.3 million unique users (source: tablets across all operating systems. users. In 2013, 23% of people who re- comScore) and its sites were visited PRISA closed the year with 433 avai- gistered with our sites did so using so- by almost 84 million Unique Browsers lable apps, 312 of which belonged to cial networks. (source: Omniture Netscope), 17% Santillana. These apps have clocked up more than in 2012. Noteworthy is the 7,649,165 downloads. weight of El País sites, the world’s leading newspaper title in Spanish. In 2013, PRISA reported For the first time ever, Latin Ameri- an audience of 31.3 million can audiences outnumber those from unique users and its sites Spain. were visited by almost 42% of PRISA’s digital audience comes 84 million Unique Browsers from LatAm, 40% comes from Spain, 4% from the U.S. and 14% from other markets (source: comScore December 2013). During 2013, one million new users have registered in our databases, on 38% of Unique Browsers accessed di- which we worked throughout the year rectly PRISA sites, which indicates the to improve the relationship between strength of Group brands. 38% acces- our sites and our readers, listeners and sed sites from search engines, 9% from viewers, and where we endeavored to social networks and 16% via other sites avoid duplication. The collection, com- (source: Omniture December 2013). pilation and management of information from our users is conducted under the As communications media, all PRISA brands make a special effort to be part of the social media conversation and to deliver content to those environments where they can connect directly with their audiences: social networks. To this end, the Group’s professional teams are integrating this social function among all professionals, while at the same time performing specific Com- munity Management duties. PRISA’s Businesses had 37.6 million followers (on Facebook and Twitter) in December 2013, a figure 13.5 million higher than in December 2012.

Another particularly relevant figure is traffic from mobile devices. PRISA closed 2013 with 39.4% of its traffic

20 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

PRISA mobile traffic

2013 39.4%

2012 29.4%

Source of traffic to PRISA sites

Social networks: 9%

Other websites: 16%

Direct traffic *: 38%

Search engines: 38%

*Visitors access sites directly by typing addresses in browser Source: Omniture UB. Dec 2013

PRISA digital audiences by region (in thousands of unique users)

2013 2012

Spain 11,425 (40%) 11,163 (42%)

LatAm 11,859 (42%) 11,129 (42%)

USA 1,152 (4%) 843 (3%)

Other 4,119 (14%) 3,585 (13%)

TOTAL 28,555 26,720

Source: comScore

21 Sustainability Report 2014 Year in review PRISA, a global group

Audiences for news sites (in thousands of unique users)

Xinhua News Agency 92,349

People’s Daily Online 78,839

Mail Online 57,570

The New York Times Brand 44,899

The Guardian 36,941

T365 - Tribune Newspapers 31,588

Telegraph Media Group 25,848

Lenta.ru 24,516

Nydailynews.com 22,954

Hearst Newspapers 21,619

The Times of India 21,579

China Daily sites 20,971

Washingtonpost.com 18,881

CRI Online sites 17,773

Gazeta.pl Group 17,253

Mirror Online 16,260

Miliyet.com.tr 14,920

Hurriyet.com.tr 13,943

El País sites 13,817

Independent.co.uk 13,102

Source: comScore

22 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Worldwide audiences for PRISA sites (in thousands of unique users)

Elpaís.com 11,022

As.com 5,897

Dalealplay.com 3,260

Meristation.com 2,698

IOL.pt 1,882

Cincodías.com 1,530

Los40.com 1,382

Cadenaser.com 1,217

Canalplus sites 1,086

S Moda El País 961

Caracol.com.co 954

Gifmania sites 785

TVI 763

Cinemanía.es 661

Icon El País 600

At the close of December El Huffington Post reported 2,175,000 unique users. Source: comScore (December 2013)

23 Sustainability Report 2014 Year in review PRISA, a global group

LatAm audiences for news sites (in thousands of unique users)

Clarín.com 8,986

20 Minutos sites 7,525

Lanación.com.ar 7,507

El Universal de México 5,255

El País sites 4,528

Abc.es sites 3,536

Eltiempo.com 3,270

Elmundo.es sites 3,083

Elpaís.com 2,725

Elmundo.es 2,626

Abc.es 2,437

Elespectador.com 2,247

Minutouno.com 2,103

Informador.com.mx 1,784

AEE Periódicos Network 1,740

Source: comScore (December 2013)

24 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Spanish audiences for news sites (in thousands of unique users)

El País sites 7,620

Elmundo.es sites 7,486

Elmundo.es 7,200

Elpaís.com 6,729

Abc.es sites 6,362

Abc.es 4,771

20 Minutos sites 4,612

Lavanguardia.com sites 3,970

20minutos.es 3,591

Lavanguardia.com 3,165

Expansión sites 2,159

Expansión.com 2,126

El Periódico.com sites 1,726

Elperiódico.com 1,583

Cincodías.com 1,368

Cadena Ser sites 1,083

Cadenaser.com 1,053

Source: comScore (December 2013)

25 Sustainability Report 2014 Year in review PRISA, a global group The transformation of PRISA

Throughout the year, PRISA has con- with new courses such as Data Jour- PRISA Noticias. Once again, these new tinued to forge ahead with, as well as nalism and Ultra High Definition Televi- tools clearly demonstrate the potential consolidate and develop, new pro- sion: 4K to 8K. Almost 2,000 professio- and the collective talent that a Group ducts within the framework of what we nals have already registered for this tool such as PRISA can harbor among its refer to as the Organization’s Trans- which, as well as providing skills and business units and territories. formation Plan. The Office for Trans- improving knowledge, also responds to formation oversaw in 2013, with the the PRISA’s most basic demand in the In 2013 we also made the greatest direct mandate of the CEO of PRISA field of talent: training. of efforts to select our 130 Agents of and in close daily collaboration with Change who are actively working on HR teams and Departments of Com- Meanwhile, the collaborative platform integrating this entire Plan into the or- munication, the second full year of this launched the year before, Mi idea, regis- ganization. This task is now nearing endeavor that helps all PRISA profes- tered the participation of more than 200 completion and is already bearing its sionals to face the challenging task new members this year, and we have first fruits. The Agents have set out, in of adapting to the changes that are been able to fruitfully tap into their ideas the last quarter, the training priorities sweeping across our industry and our from all across the organization, ideas that are destined shape the curriculum broader environment. that have solved a whole range of cha- of Campus PRISA courses for the co- llenges. One of the most striking cases ming year. For the first time, training As part of these developments, we ha- was the solution to a challenge posed by will be based directly on those needs ve improved the curriculum at Campus PRISA Brand Solutions, which was won by that are identified by the professionals PRISA, our on-line training platform, a member of the professional tax team at themselves.

26 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

competitive, more dynamic, and more innovative future.

For 2014, we have a range of new projects in the pipeline, even as we continue to enhance and improve those already at our disposal. To mention but one, we aim to encourage PRI- SA professionals to design and share their own training courses. That is, to become PRISA Trainers. We will also be launching our Mentoring Project to invest in a culture of cross-corporate altruistic support on projects, and to facilitate the transfer of talent, knowledge and experience.

And we will finally be in a position to launch our “Welcome Package”, through which new professionals joining us, from any The Agents also helped refine the pri- If we were forced to country, will be able to the discover sa Leadership Guide, which perhaps everything they need to know about the best summarizes PRISA’s new culture. choose our flagship company, its values, its responsibilities We have worked on this guide throug- product of 2013, this and its goals. hout all of last year, conceiving it as a would undoubtedly be necessary tool for cultural change in All these efforts represent investment in any organization such as ours. This do- the Factoría de Experiencia responsible internal management that cument, the first of its kind, embodies fosters individual professional develo- the organization’s commitment to talent pment and that helps professionals to management and to the revitalization adapt to the digital environment, the- and development of a more horizontal The Factory now has around 600 regis- reby providing them with security in tur- decision-making culture, one that allows tered professionals, who are just begin- bulent times, as we move towards grea- each professional to feel responsible for ning to discover all the potential that this ter transparency. better results, and which fosters a new potent tool has to offer to a group such leadership style to which our executives as ours in increasingly demanding and are committed. competitive times.

If we were forced to choose our flags- Before launch, we identified all tho- hip product of 2013, this would undou- se professionals who were involved btedly be the Factoría de Experiencia in R&D across all our companies. All (Experience Factory), in terms of both of them accepted the role of Experts, investment as well as innovation and either in the fields of technology or the demands it placed on us. This is market intelligence. They are our pio- much more than a mere repository of neers and are responsible for ensuring knowledge, or a simple website to ar- that others now learn how to use this chive documents on projects under- new tool. taken by PRISA professionals. The Factory provides a knowledge-based Much work remains to be done, but, social space where we can share lear- at the of 2013, we can safely say that ning and mistakes; where we can seek the Plan is rapidly gaining traction, is out help from other PRISA professio- increasingly familiar to members of our nals; where we can find experts on di- organization and that it represents the fferent subjects, etc. best efforts of PRISA to invest in a more

27 Sustainability Report 2014 Year in review PRISA, a global group Business areas

Santillana Santillana’s commitment to digital situation is complicated by the adoption publishing continues apace, offering di- of the new Education Law, LOMCE (Or- Once again, and for another year run- fferent models in line with market needs ganic Law for the Improvement of Edu- ning, Santillana has maintained its and rhythms of implantation. 2013 was cational Quality) which, not without con- leadership in the education and pu- a year of consolidation for Sistema troversy, will begin to be implemented in blishing sectors in Spanish and Por- UNO, a comprehensive learning mo- the 2014-15 course for Primary and Ba- tuguese. Its intense activity in the 22 del that offers content, equipment and sic Professional Training (FP). The low countries where it operates is critical educational services to schools, with an degree of support for this Law among to the growth of the group, while the emphasis on technological innovation the autonomous regional governments strength and robust nature of many and bilingual education. At the same and among educational institutions in of its markets has enabled it to face time, this year has been instrumental in general, makes its actual level of imple- down the worst of the Spanish econo- the international expansion of Santillana mentation uncertain, to say the least. mic downturn, which has seen consu- Compartir to countries such as Colom- Meanwhile, Santillana has launched an mer spending fall and the publishing bia, Brazil and Argentina. This initiative, ambitious new educational project that industry suffering significant losses which was launched in September 2012 will be released in the coming months over the past four years. Results in in Mexico, integrates print text with digi- and which responds to the new curricu- Latin America demonstrate the effecti- tal content and is intended as a system lar changes. veness of the company’s efforts in the of support for schools in their transition region, despite the negative impact to the use of new technologies. With an operating income of 738 of volatile currency markets in some million euros (+0.6% over 2012), countries. There was particularly buo- In the Spanish market, despite the eco- Santillana’s EBITDA reached 171 yant performance in Brazil, where the nomic downturn, Santillana has outper- million euros. Business in Latin Ameri- company leads in both the public and formed the market, both in education ca accounts for 80.5% of consolidated private education sectors. and in general-interest publishing. The group revenue and 86.7% of EBITDA,

Santillana stand in LIBER.

28 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

with these good results undermined by the effects of devaluations of the local currency in several territories. Of special note are the contributions of Brazil, Spain and Mexico, and there were also good results for revenues in smaller countries such as Bolivia (+21.5%), Southern Central America (+17.3%), Puerto Rico (10.6%) and Venezuela (9.2%).

Moderna, Santillana’s educational publisher in Brazil since 2001, reported net sales of 188 million euros (+5.6%) and EBITDA of 59 million (+2.5%). This was due primarily to the good performance in sales in the private and public education sectors, with significant growth for learning systems, which increased 72.6% over the previous year.

Once again, and for another year running, Santillana has maintained Pupitre won the TAB Innovation Award. its leadership in the

education and publishing revenues of 63 million euros (+47.6%, together Richmond’s traditional busi- sectors in Spanish and over last year). ness, English learning within Santillana Compartir and the bilingual learning in Portuguese 2013 was also a year of international ex- Sistema UNO, Santillana is the leading pansion for Santillana Compartir, which provider of languages in Latin America, was rolled out in Mexico in 2012-2013 supplemented by a strong position in and has now started operations in Bra- academies and universities. Education zil, Colombia and Argentina, reaching a total of 186,045 students. In 2014, this In 2013 Santillana won several awards By business area, Santillana Educa- model will be implemented in ten coun- for its educational initiatives in multi- ción (the core business of the com- tries. device format. Pupitre, an app aimed pany), achieved sales of 489 million at children aged 6 to 10, won the TAB euros. This includes the traditional The language learning line, which in- Innovation Award for best educational textbook business, digital tools and cludes the labels Richmond, Santilla- app, while Tareas y más won the SIMO the two initiatives that best express the na Français and Santillana Español, award for Best Digital Educational Re- commitment of the company to a com- posted revenues of 90.3 million euros source created by a publisher. prehensive, integrated and innovative (12.5% of the company total). Rich- education system: Sistema UNO and mond, dedicated to English language Santillana Compartir. This year has learning, has experienced accelera- PRISA Ediciones seen the consolidation of the business ted growth in emerging markets such model for Sistema UNO Internacional, as China and Turkey. Meanwhile, in In 2013, PRISA Ediciones, which inclu- which ended December with 250,420 Spain, Santillana Français is leader des the labels Alfaguara, Alfaguara In- students and more than 13,274 digi- at all levels of education, as is Santi- fantil y Juvenil, Suma, Taurus, Aguilar, El tized classrooms. This model had llana Español in Brazil. If we consider País-Aguilar, Objetiva (Brazil) and Punto

29 Sustainability Report 2014 Year in review PRISA, a global group

de Lectura, published 123,974,000 titles Although the Spanish market remained now represent 5% of the revenues of and reported revenues of 135 million eu- depressed, with a fall of 14% (33% ac- PRISA Ediciones.The digital catalog ros (+2.85% compared to 2012). cumulated over the past four years, ac- consists of over 3,700 titles, from Spain cording to Nielsen) PRISA Ediciones has and Latin America, and these are simul- Performance in the general-interest pu- outperformed the industry average, with taneously published as print books. blishing sector was similar in 2013 to a 6% decrease. This strength compared that of 2012, with depressed consumer to other publishers has been thanks pri- In addition, PRISA Ediciones has pio- spending in Spain and stronger results marily to offering the market an attractive neered the publication of interactive and in the economies of Latin America. The publishing plan, with renowned global multimedia books, enriched with full-co- results for PRISA Ediciones in countries authors and fresh new talent, such as lor images, drop-down menus, 3D, video throughout the latter region highlight the Joël Dicker, the sensation of the year and audio, all specially created to be en- greater strength and dynamism of Latin worldwide with his book The Truth About joyed on multifunction devices such as American markets, as evidenced by the the Harry Quebert Affair (Alafaguara) tablets and smartphones. The available last International Book Fair in Guadala- chosen as book of the year by the news- catalog amounts to 168 titles, focusing jara (Mexico), where almost all publis- paper El País. In a difficult time for the on food and travel collections by El País- hers and booksellers reported higher industry, discovering talent such as this Aguilar, illustrated books from Alfaguara sales as compared to the previous year, is an enormous boost for the company. Infantil y Juvenil and titles from Aguilar and with the fair registering record at- These include: Objetivo: Cupcake per- tendance figures. In 2013 revenues With regards to the digital offer, the year fecto by the food blogger Alma Obregon, were significantly up for PRISA Edicio- was characterized by a considerable in- the interactive book “Metegol” based on nes in Argentina, Brazil and Colombia. crease in the catalog of ebooks, which the film by Juan José Campanella, and

1. Argentina Book Fair.

2. Alfaguara Novel Prize 2013.

3. Arturo Pérez Reverte signing copies at the Madrid Book Fair.

2 3

30 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

“Sé única“ from the “Monster High” se- outstanding Spanish writers of the nine- In 2013 Alfaguara Infantil y Juvenil ries, and a huge hit with younger readers. teenth and twentieth centuries. scored rights to some of the most attractive titles in the sector: a range of Two new digital labels have also been The label Aguilar garnered a major holiday books for young children featu- launched: Alfaguara Digital and Foglio, success with the publication of the non- ring the character Peppa Pig, and sto- the latter created by Brazilian publisher fiction bestseller of the year in several ries and activity books with favourite Objetiva Brasil. There are also digital countries, La enzina prodigiosa, by the characters among children and young books available in installments, such as Japanese author Hiromi Shinya. people, such as Angry Birds, Monster Oscar y las mujeres, by Santiago Ron- High and Adventure Time. cagliolo, and Y por eso rompimos, one of Alfaguara Infantil y Juvenil’s big hits Piracy remains the single Brazil was the guest country at the last worldwide. Frankfurt Book Fair, and Objetiva Brasil most destabilizing factor showcased the works of some of its top Despite best efforts to make available for digital businesses authors, including: Ana Maria Machado, a greater, more varied and moderately Adriana Lisboa, João Ubaldo Ribeiro, priced catalog, piracy remains the single Carlos Heitor Cony, Ronaldo Correia de most destabilizing factor for digital busi- Brito, Ruy Castro, Zuenir Ventura, Luiz nesses. It is therefore vital that there is Suma de Letras published El cumplea- Fernando Verissimo, João Cabral and collaboration and support from across ños secreto, the new novel by bestse- Mario Quintana. the entire sector and with public autho- lling author Kate Morton, as well as lo- rities to ensure action is taken against cal hits such as Reír al viento by Sandra illegal links and websites that undermi- Barneda, published in Spain. ne the whole value chain for books and intellectual property. El País-Aguilar has been able to offset the decline in sales of guidebooks Alfaguara, which in October 2014 will with more robust sales in the food and celebrate its fiftieth anniversary and baking sector. El cupcake perfecto by which presented its special anniversary Alma Obregon stayed on bestseller program at the last Guadalajara Inter- lists throughout the year, a publishing national Book Fair, published a range of triumph which has been supported by titles by world-renowned authors, such the the author’s hit TV show. as El héroe discreto by Mario Vargas Llosa and El francotirador paciente by Arturo Pérez- Reverte. The publisher was also successful with works of in- ManagementEquipo directivo team ternational fiction such as Mañana te dejo by Gilles Legardinier and La her- mana de Freud by Goce Smilevski. Chairman (non-executive): Ignacio Santillana Other authors such as Claudia Piñeiro, CEO: Miguel Ángel Cayuela Xavier Velasco, Fernando Vallejo and Ana Maria Machado, have been well re- Chief Operating Officier: Federico Blanco ceived in their respective markets. The Global Managing Director for Education: Francisco Cuadrado Alfaguara Novel Prize this year went to Chief Digital and New Developments Officer: Miguel Barrero Jose Ovejero for La invención del amor (The Invention of Love). Global managing director for International Sistema uno: Pablo Doberti Global Managing Director for Language Learning: Christopher West To mark the three-hundredth anniversary of the RAE (Royal Spanish Aca- Global Managing Director for PRISA Ediciones: Armando Collazos demy), Alfaguara jointly published with Director of Communication: Rosa Junquera the Royal Academy La Misericordia Director of Institutional Relations: Mariano Jabonero by Benito Pérez Galdós and La Busca by Pío Baroja, as part of a collection Director of Human Resources: Francisco Lorente of special editions of literary works by

31 Sustainability Report 2014 Year in review PRISA, a global group

Santillana: sales business area (in millions of euros)

Education without UNO 420

General 135

Languages 95

UNO 70

Other 5

Annual books sales (millions)

2013 124

2012 126

2011 115

32 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Book sales by geographic region (in millions of euros)

Brazil 226.3

Spain 134.6

Mexico 106.8

Argentina 45.6

Chile 35.2

Venezuela 32.8

Peru 32

Colombia 26.4

Portugal 6.8

Rest of Americas 77.5

33 Sustainability Report 2014 Year in review PRISA, a global group

1. El País Brasil crew.

2. El País and World Bank conference. 2 3. Investing in Perú.

PRISA Noticias number of unique users at its highest le- 2013, kept alive the spirit and values vel ever. In late 2013, 36% of the on-line that first inspired these accolades in audience accessed the sites from mobi- 1984: to promote the defense of free- El País le devices while the El País iPhone app dom, independence and rigor as the reported over a million downloads. essential hallmarks of excellent journa- El País, the global Spanish-language lism. Alberto Salcedo Ramos, Juan Ra- newspaper, remains the most read El País maintains its goal of becoming món Robles, Emilio Morenatti and Jes- newspaper in both its print and digital the worldwide daily newspaper of re- us de la Serna, were the winners of the editions. With an average circulation of ference in Spanish, and has taken yet most prestigious awards for journalism close to 300,000 copies, it is ahead of its another step in its vocation to expand in Spanish, this year celebrating their closest competitor, El Mundo, by nearly in the Americas with the launch of El thirtieth anniversary. 100,000 copies. According to the latest País America, an edition with regiona- EGM figures, El País also remains the lly differentiated news and specific co- The El País de los Estudiantes program most read daily general-interest news- verage of events in Latin America, and this year celebrated its twelfth edition, paper, with 1,812,000 daily readers. El País Brazil, a Portuguese-language thanks to the sponsorship of Endesa. In edition of the newspaper, which has a 2013, 30,818 secondary-level students According to comScore, in December new newsroom in São Paulo. and 5,595 high school teachers from 2013 El País sites exceeded 13 million 2,269 centers throughout Spain partici- unique users, 11% more than in the Once again, El País hosted the Ortega pated, a clear sign of the support and in- same month in 2012, and ahead of El y Gasset Awards for Journalism. The volvement that the educational commu- Mundo sites, with the gap in terms of the 30th edition of the awards, held in May nity continues to lend to this program.

34 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

2013 was an eventful year for El País at agency in Spain to launch El País Viajes, Cinco Días Forum, a space for debate and an institutional level. In June, in Panama a website allowing users to purchase and ideas that has established itself as one of City, the newspaper organized a forum to book trips to any destination. Furthermore, the most important business and politi- discuss business and investment oppor- in December, El País began selling news- cal forums in Spain. These events aim to tunities in the country, which was atten- paper covers on demand, a new service provide a realistic view of the current eco- ded by President of the Republic of Pa- that allows readers to buy a framed front nomic situation and the measures being nama, Ricardo Martinelli. With a similar page of the newspaper, the culture supple- taken to mitigate the effects of the crisis goal, El País organized the forum ‹Inves- ment Babelia or El País Semanal. Finally, and thus set the country on the road to ting in Peru› in Lima, with the participation in 2013 and after 9 years of service, El recovery. To this end, in 2013, Cinco Días of the Peruvian president, Ollanta Huma- País club de vinos (wine club) has become organized a series of encounters with lea- la. In addition, El País and the World Bank one of the biggest websites selling wine in ding figures from the worlds of business organized a conference in Washington on Spain, with nearly 30,000 members. and politics, such as Luis de Guindos, Mi- the growth of the middle classes and the nister of Economy and Competitiveness, gap in services in Latin America. José Manuel García-Margallo, Minister of Cinco Días Foreign Affairs and Cooperation, José An- El País launched two new tonio Grin, president of the Andalusian re- editions: El País America and Cinco Días celebrated its thirty-fifth an- gional government, and Javier Fernández, niversary in 2013 with a new logo in its President of the Principality of Asturias. El País Brazil, a Portuguese masthead, and also clocked up issue edition in São Paulo. number 10,000 for its print edition. Ac- In 2013, Cinco Días held the sixth annual cording to third quarter EGM figures, Cinco Días Awards for Business Innova- Cinco Días had 72,000 daily readers, tion. The winners were Acciona, the Bas- El País improved its weekend offer in 2013, 18,000 readers more than the accumu- que Culinary Center and Endesa. and signed a deal with the Guía del Ocio lated figure for the previous third quarter. (Entertainment and Leisure Guide) for joint distribution with the newspaper of this ma- The digital edition of the newspaper in As gazine, the ultimate newsstand guide for 2013 underwent a major redesign. In leisure, entertainment, cinema. restaurants December, according to comScore, the Sports daily As ended the year with an and shows. Meanwhile the El País travel on-line edition exceeded 1.5 million uni- average circulation of 158,164 (OJD) supplement El Viajero (The Traveler) tur- que users, almost 25% more than for and 1,346,000 daily readers, according ned 15 and celebrated its birthday with the the same month in 2012. to third quarter EGM figures. publication of a special issue. The Sunday magazine supplement, El País Semanal, Cinco Días, Spain’s veteran business and As sites increased its on-line audience got a thorough makeover and introduced finance daily, has been organizing for a in December and exceeded nine million changes to its structure, news desks, and number of years the series of events titled unique users (comScore). Thanks to the look to better adapt to the times. Finally, on the first Thursday of each month, starting last November, readers have been able to enjoy a new magazine dedicated to fashion and lifestyle, ICON.

El País reinforced its commitment to e- commerce, with such operations reaching a total turnover of 2,822.6 million euros in Spain in the first quarter of 2013, afi- gure 15.1% than in the same period in 2012 (data: CMT). In the United States 8% of media income now comes from e- commerce, according to data provided by World Press Trends WAN IFRA. Thus, and in an effort to meet readers’ demands by offering products and services through its website, El País teamed up with a travel

35 Sustainability Report 2014 Year in review PRISA, a global group

addition of the video portal Dale al Play Palace in Madrid. Marc Marquez, the MeriStation (Press Play), As, the largest on-line au- women’s water polo team, Simeone diovisual media outlet in Spanish, increa- and Marta Ortega were honored at this On November 8, PRISA Noticias launched sed its on-line audience by 48.2% com- celebration in honor of Spanish sport. a new edition of its video games portal, pared to the same month in 2012. The MeriStation Mexico. Thanks to the collabo- digital edition of As got a makeover, with As América give Spanish ration of Televisa Radio, which is 50% PRI- a more visual front page, new and enhan- sport to the more than SA owned, and Los 40 Mexico, Mexican ced navigation and improved content. In video game fans now have access to all addition to Dale al Play, As.com also in- 460 million Spanish the latest gaming news in their language, corporated As Viajes (Travel) and As Out- speakers in Latin America with information on upcoming attractions let, two new portals with special offers on and coverage of local events. Habacuc travel, shopping, and leisure for readers Guzman, a recognized industry professio- of the sports daily. As also launched the El Huffington Post nal in LatAm, presented the special edition new apps As TriviAS and the Guide to the on the occasion of the Electronic Games League, the newspaper’s first paid appli- The Spanish version of U.S. news websi- Show trade fair, which was attended by the cation for smartphones. te, founded in 2005 by Arianna Huffington founder of Meristation, Pep Sanchez. and Kenneth Lerer, celebrated its first bir- With the goal of bringing Spanish sport thday on June 7. Since its launch in 2012, In 2013 MeriStation also launched its on- to over 460 million Spanish speakers in the journalist Montserrat Domínguez has line gift shop, Lo quiero ya! (I want it now!) Latin America, As launched As America. been at the helm, leading a team of 11 With this new edition, As strengthens its journalists. Over the past year El Huffing- presence in Latin America and allows ton Post, published jointly (50%) by PRI- PRISA Revistas users in Ecuador, Colombia, Mexico, Ve- SA and AOL-The Huffington Post, has re- nezuela, Dominican Republic, Argentina designed all apps for phones and tablets In November 2013, PRISA’s magazi- and Peru to view game highlights from and has developed an integration tool nes division PRISA Revistas launched the League and the Copa del Rey. that enables tweeting selected sentences ICON, which has become the magazine from within a text. According to comSco- of reference in the men’s lifestyle maga- In 2013, As hosted the seventh edition re data from December 2013, the news zines market. It reported a circulation of of the As Sports Awards at the Hotel portal exceeded two million unique users. over 280,000 copies, according to data

36 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

from OJD, and an audience of more than Rolling Stone celebrated the fifth edi- 500,000 unique users for the web ver- tion of the Rolling Stone Awards, which sion, according to comScore. ICON is dis- were won by Rosendo, Loquillo, Leiva, tributed together with the El País on the Ariel Rot, Quique González, Mala Ro- first Thursday of each month, and is sold dríguez, Iván Ferreiro and Pete Doher- separately in kiosks from the next day. ty. There was also a prize for the TV show Un lugar llamado mundo, for fas- The Factoría de revistas (Magazine hion model Poppy Delevingne and film Factory) won the bids for the creation of director Enrique Urbizu. Rolling Stone multilingual content for the website es- continues to see its circulation grow, Madrid.com and for developing the Ma- with the third quarter EGM data repor- drid guide, Madrid, un estilo de vida, in ting over 300,000 readers. both their iPad and print versions. Both are projects for Madrid’s town hall. The Cinemanía launched its app in Apple Factoría also renewed its agreement Store and in Google Play, allowing movie with Air Europa to create its inflight ma- buffs to follow the movie world via their gazine, that also is also available as an smartphones. Furthermore, Cinemania. application for iPad, and which makes it es continues to grow, reaching 600,000 a pioneer among Spanish airline maga- unique visitors according to comScore. zines. In 2013 the Factoría also added the digital and print edition of Aqualogy’s Car consolidated its position as the top- El País Semanal new look. (Agbar) Aqua Magazine to its portfolio. selling premium car magazine in Spain, The Factoría produces more than 30 with 17,086 copies (OJD Jul12 - Jun13). tailor-made projects in different digital platforms and print formats.

Management team

Executive Chairman: José Luis Sainz. Managing Director: Julio Alonso Peña. Cfo and Resources Officer: Matilde Casado Moreno. Director of Digital Development: Carlos Relloso Cereceda Director of Commercial and Marketing: Ángel García Colín. Director of Human Resources and Managing Editor: Josefa Gutiérrez Fernández.

Chief Financial Officer:Jorge Martín Magdalena. Director of Legal Department: Xavier Pujol. Commercial Managing Director: Ferrán Juaní Solans. Editor-in-Chief, El País: Javier Moreno Barber. Editor-in-Chief, Cinco Días: Jorge Rivera. Editor-in-Chief, As: Alfredo Relaño. Editor-in-Chief, PRISA Revistas: Óscar Becerra. Director of Communication: Pedro Zuazua Gil.

37 Sustainability Report 2014 Year in review PRISA, a global group

Application downloads of PRISA newspapers (2012 - 2013)

2013* 2012 2013 vs 2012

iPhone 1,065,444 882,400 21%

El País iPad 683,616 523,977 30%

Android 721,672 294,555 145%

iPhone 636,814 518,949 23%

Diario As iPad 204,543 138,995 47%

Android 1,245,020 593,651 110%

iPhone 113,575 105,993 7%

Cinco Días iPad 94,478 86,568 9%

Android n.a. 12,851 -

*Accumulated data from the beginning of applications

Circulation figures for leading Spanish general-interest printed newspapers

El País 292,226

El Mundo 173,507

La Vanguardia 152,320

ABC 140,026

El Periódico 101,053

La Razón 85,267

Source: OJD 2013

38 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Circulation figures for leading Spanish specialist printed newspapers

PRISA Competitors

As Marca

2013 158,164 2013 183,001

2012 180,014 2012 214,635

2011 198,758 2011 244,456

Cinco Días Expansión

2013 28,911 2013 30,381

2012 31,120 2012 33,765

2011 31,327 2011 37,495

Source: OJD 2013

39 Sustainability Report 2014 Year in review PRISA, a global group

PRISA RADIO

PRISA Radio is the world’s largest Spa- nish-language radio group with 27.99 million listeners and more than 1,250 stations, either directly owned or asso- ciates, spread out over Spain, the US, Mexico, Colombia, Costa Rica, Pana- ma, Argentina and Chile, and franchi- sed in Guatemala, Ecuador and the Dominican Republic

PRISA Radio has consolidated its management model, which aims to revita- lize radio formats and brands, usher in technological innovation, and promote the production and presence of content across all digital platforms. This model, which is being implemented for both Cadena SER presents his new season. products and management, enables us to to optimize synergies and has allowed PRISA Radio to set the stan- first became Spain’s leading station with Paraguay joining, in July 2013, the dard as a truly global radio brand across and it has remained the top-ranking other ten countries that broadcast this the Spanish-speaking world. network for the past two decades. Ac- formula for musical success. cording to third quarter 2013 EGM figu- 2013 has once again highlighted the res, SER holds its lead with 4,564,000 Once again, countries have invited their robust economic health of Latin Ame- listeners tuning in to the station’s pro- listeners to their biggest music events, rican countries and all those PRISA gramming Monday through Friday. with the Eventos 40 in Colombia and Mexico gathering the biggest crowds. On PRISA Radio’s music stations in Spain May 25, more than 60,000 fans turned It has launched a system kicked off the season in September with out for one of the most important musical for the modernization and significant changes to their schedules. events of the year in Bogotá, where the innovation of radio The mic at Cadena Dial’s breakfast pro- Simon Bolivar park rocked to the sounds gram, Atrévete, was handed over to Jai- of Vicentico, Carlos Vives, Caly & El me Cantizano. Over at 40 Principales, Dandee, Luigi 21 and Dr. Krápula. meanwhile, and after a triumphant start, Radio companies operating throughout YU: No te pierdas nada, which is broad- 40 Principales Mexico once again the continent. Meanwhile, the econo- cast on-line at los40.com and in analog, scored a triumph this year, with the mic crisis that has hit Spain continues modified its schedule for strategic rea- country’s most important music event: to affect the advertising market in this sons. 100,000 music fans packed the Azte- country. Nevertheless, the crisis has ca stadium for performances by artists not prevented PRISA Radio in Spain Furthermore, in order to optimize its on-li- including Austin Mahone, DLD, Leon from forging ahead with its process ne portfolio of interactive digital products, Larregui, Enjambre, María José, Leonel of innovation and improvement. It has No te cortes joined the program schedu- Garcia, Los Angeles Azules, El Tri, San- launched a system for the moderniza- les. Presented by Uri Sabat and Daniel doval, Playa Limbo, and Jenny & The tion and innovation of radio, including Blume, the show allows direct communi- Mexicats. the revitalization of content and for- cation with the listener through the tradi- mats, the reinvention of radio’s narra- tional analog system and through social Also in 2013, PRISA Radio and Apple tive language and the reformulation media, websites and blogs, as well as signed a deal to collaborate on events of opinion spaces. The leading radio the 40 Principales website itself. that both brands jointly develop: the group’s structural and strategic goal iTunes Festival, 40 Principales Awards for 2014 is to continue apace with this In Latin America, the expansion of the Spain, Locos por la musica, and 12 transformation. In 1993, Cadena SER 40 Principales brand continued apace, Days of Christmas. The agreement,

40 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

which included all stations in all coun- cially exploit all its simulcast broadcasts venues and concession stands in the tries where 40 Principales operates, is by replacing offline advertising. zoo and in the Olympic Stadium in Bar- set to continue in 2014. celona, along with promotions carried out with other media. With regards to digital products, in New business 2013 the focus has been on four prio- For 40TV, 2013 has been a year of reor- rity areas: Development of the music the year saw a range of new agreements ganization of the channel with costs website which resulted in the launch of signed with partners in new sectors and being adjusted to optimize resources, a revamped 40 Principales, los40.com businesses leading to the expansion with the ultimate goal of maintaining the in February 2014; an improvement and of the music brand. After a three-year quality of content of the network’s own update plan for spoken-word radio si- successful run for the stage show, 40 El programs such as the chart countdown tes in Latin America that was conclu- Musical, further new agreements were show Del 40 a 1 and World Dance Mu- ded late in the second quarter of 2013; signed with producers in the sector. To- sic, as well as maintaining quality pro- the completion of the development of day the network participates as media gramming through the selection of the mobile products in app format for all partner in the musical Hoy no me pue- best videos on the market. PRISA Radio products for four opera- do levantar. Brand extension continues ting systems: iOS, Android, BlackBerry apace with existing businesses such as: and Windows Phone; and finally, the Tarjeta 40, 40 Cafá, 40 Viajes and Ca- My Major Company deployment of a CRM model in coor- dena SER Viajes. dination with PRISA Noticias that will Digital music platforms have continued provide PRISA Radio with a better un- In the world of music, agreements have to grow. In its first year of operations, My derstanding of its users and lead to a been signed and improved with artists, Major Company raised 330,000 euros greater loyalty to its products. managers and record labels for the through 50 projects that were funded in launch of new albums and tours. 2013, seven of which made it into the In addition, there have been a range of Top 20 crowdfunding projects, in terms agreements and integrations required to Other areas of growth during 2013 have of funds raised during the year in Spain bring digital audio to the market. Today, included artist merchandising, mer- and Latin America. The year 2013 en- PRISA Radio is in a position to commer- chandising in entertainment and concert ded with the launch of the record label

Dial Awards 2013.

41 Sustainability Report 2014 Year in review PRISA, a global group

artists from the current music scene, staging tours with top international performers such as Franco Battiato, Eros Ramazzotti, Marisa Monte, Carlos Vi- ves, Carlos Baute and Carlos Rivera. In Spain, the company scheduled concerts by artists such as Alejandro Sanz, Pablo Alboran, Duncan Dhu, Melendi and Diego Martin. Of particular importance is the work of Planet Events, every year, on major productions and events of all kinds, such as the 40 Principales Awards, the Premios On- das, the As Awards, the Dial Awards, the Primavera Pop Festival, and Dies Irae. 2013’s big event was a lavish, musical extravaganza held at Madrid’s Puerta de Alcala on the occasion of the capital’s bid for the Olympic Games, Madrid 2020. In addition, this year the company has successfully embarked on the organization of DCode, the Ma- drid indie festival par excellence.

Planet also brought English-speaking performers such as Alex Clare, Ben

My Major Company Musica and the sig- Miguel Bosé was named 2013’s “Person PRISA Radio closes 2013 ning of its first two artists: Naela and Mr of the Year “ by the Latin Grammy Aca- with 27,990,000 listeners Kilombo. demy. He thus closed a year which saw him tour Spain and the Americas with “Papitwo”. In December, he launched the RLM “Colección definitiva”, a compilation of his Howard and Elvis Costello to Madrid’s all-time biggest hits and videos. Raphael, summer music program, Veranos de 2013 has been a successful year for meanwhile, has scarcely left the stage. la Villa, and organized events such as the roster of artists signed with RLM. The tour “Mi gran noche”, with 55 con- the prestigious concert presentation For Alejandro Sanz 2013 was a year of certs between Spain. The USA and Latin for The Beatles collection, in partners- triumphs and plaudits. His album “La America, led to the digital edition of his al- hip with El País, thus strengthening its música no se toca”, with over 600,000 bum of the same name, which also sold relations with other companies. And in sales and a Grammy for Best Contem- 10,000 physical copies during the tour. 2013, Planet Events didn’t neglect its porary Pop Album, led to a concert tour youngest music fans, with the dazzling in Spain and the Americas: a tour featu- RLM ended 2013 with more great news: Violetta tour (Disney), a show that drew ring 60 concerts and for which he won the signing of a partnership agreement more than 160,000 fans in six different the 40 Principales Awards 2013. The with Mediaset for the management and cities year 2013 also saw definitive success booking of artists from Dreamland, the for Malu. Hot on the heels of a suc- TV series to be broadcast by Cuatro cessful Spanish tour with “Dual”, came from March. PRISA Radio closes 2013 with the new album “Sí”, which went double 27,990,000 listeners platinum and topped the album charts. The successful year culminated with Planet Events In Spain, PRISA Radio closed 2013 with a nomination for the Latin Grammys 12,143,000 listeners. Cadena SER, and accolades at the 40 Principales During 2013, concert promoter Planet with 4,564,000 listeners daily, Mon- Awards. Events has worked with the hottest day through Friday -according to EGM

42 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

data- has been Spanish radio leader broadcasts nine lines of programming in brings its extensive experience in the ra- for an uninterrupted 20 years. 40 Prin- different formats of music and spoken- dio business. Radiópolis, through its 117 cipales, with 3,616,000 listeners, has word radio, with 10,772,000 listeners, stations, and affiliates, distributes five li- been Spain’s Number 1 entertainment plus a further two radio formats distribu- nes of spoken-word and music program- brand for more than four decades and, ted exclusively on-line. ming, reaching 1,396,562 listeners daily. thanks to its expansion drive, it is now also Number 1 among youth audiences In Chile, PRISA Radio is undisputed In Argentina, PRISA Radio reached in all Latin American countries where it market leader, with 2,137,000 liste- 1,122,153 listeners according to figu- operates. ners. Of the eleven formats broadcast, res for September to November 2013. seven are among the top-ten ranking Radio Caracol, with 2,123,000 listeners, for audiences. Radio Corazon, yet remains the leading network in Colombia again is the most popular radio station 1. Alejandro Sanz in Hoy por hoy. and one of the most prestigious networks in the country 2. Carlo Ancelotti in El Larguero. in Latin America. It has thus become one of the pillars of PRISA Radio, both for In the Mexican market, PRISA Radio ope- 3. Baltasar Garzón in Hoy por hoy. its brilliant track record as well as its fi- rates through Radiópolis, owned 50% 4. Steven Spielberg and Daniel Day Lewis nancial solvency. Caracol produces and by Televisa, and to which PRISA Radio in Hoy por hoy.

1 2

3 4

43 Sustainability Report 2014 Year in review PRISA, a global group

The 10 years of W in Colombia were held with a massive Beyoncé concert.

Radio Continental continues to go from radio format that includes news, sports, strength to strength on the Argentinean music and magazine programs. It is fo- radio scene. llowed by 180,085 listeners daily.

In the U.S., PRISA Radio operates two radio stations that broadcast in Management team Spanish, one for the Los Angeles and southern California region, an area which encompasses more than 30% of the U.S. Hispanic population, and PRISA Radio Chairman: Augusto Delkader another broadcasting in Miami, where PRISA Radio and Ser Ceo: José Luis Sainz we are No. 1 in the Hispanic spoken- Chief Financial and Resources Officer:Pedro Antón word radio sector. It has an audience of 203,200 listeners. In addition, PRI- International Managing Director: Andrés Cardó SA Radio operates GLR Networks, a Managing Director of Music Radio: Sandra Rotondo producer and distributor of programs and advertising space among more Chief Digital Officier:Ignacio Azcoitia than 100 affiliated stations. Managing Director for Spain: Alejandro Nieto Managing Director for South America And Colombia: Ricardo Alarcón In Panama, PRISA Radio operates three broadcast networks, the spoken- Managing Director for Argentina: Nicolás Yocca word radio channel Radio Panama Managing Director for Chile: Ricardo Berdicheski and two music stations, 40 Principales and Bésame, all of which enjoy great Managing Director for Usa: Daniel Anido popularity. In Costa Rica, where PRI- Managing Director for Mexico: Juan Ignacio Reglero SA Radio operates four radio formats Jimena Quintero through a company co-owned 50% by Managing Director for Panama and Costa Rica: the group and La Nación, October 2011 Managing Director of Communication: Susana Sánchez Riu saw the launch of ADN, a spoken-word

44 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

PRISA Radio audience by country (in thousands of listeners)

Accumulated audience Position Source

Spain 12,143 1 EGM, 3rd wave 2013

LatAm 15,756

Colombia 10,772 1 ECAR july / october 2013

IPSOS august / november 2013. Chile 2,137 1 Gran Santiago

Mexico 1,397 3 INRA Nov 2013 Mexico DF

Argentina 1,122 4 IBOPE september / november 2013

EE.UU. Miami 102 9 Arbitron, november 2013

EE.UU. Los Angeles 70 4 Arbitron, november 2013

Costa Rica 156 4 EGM, 3rd wave, july / september 2013

Portugal 1,903 1 Marktest 2013

TOTAL PRISA Radio 29,802

PRISA Radio audience in Spain (in thousands of listeners)

Cadena Ser 4,564

40 Principales 3,616

Cadena Dial 2,177

Máxima FM 754

M80 Radio 551

Radiolé 481

Source: EGM, 3rd wave 2013

45 Sustainability Report 2014 Year in review PRISA, a global group

General interest radio audience in Spain (in thousands of listeners)

Cadena Ser 4,564

Onda Cero 2,460

Cope 1,845

RNE 1,589

Otras 1,203

Source: EGM, 3rd wave 2013

Ranking of general interest radio audience in Spain

Cadena Ser 39.1%

Onda Cero 21.1%

Cope 15.8%

RNE 13.6%

Otras 10.3%

Source: EGM, 3rd wave 2013

46 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Musical radio audience in Spain (in thousands of listeners)

Total PRISA Radio 7,579

40 Principales 3,616

Cadena Dial 2,177

Europa FM 1,901

Cadena 100 1,787

Kiss FM 976

Máxima FM 754

Source: EGM, 3rd wave 2013

Ranking of musical radio audience in Spain

40 Principales 25.1%

Cadena Dial 15.1%

Europa FM 13.2%

Cadena 100 12.4%

Kiss FM 6.8%

Source: EGM, 3rd wave 2013

47 Sustainability Report 2014 Year in review PRISA, a global group

other platforms, CANAL+1 had 91,059 network of sites run by Media Capital PRISA TV customers and CANAL+ LIGA had Digital reported robust performance 659,790. ARPU stood at 42.7. and recorded a monthly average of PRISA‘s audiovisual area ended the more than 400 million page views (up year leading the Spanish and Portugue- In Portugal, TVI has, for yet another 74%). The production company Plural se markets with its offer of digital enter- year running, consolidated its position Entertainment ended the year with tainment and commercial television. In as undisputed leader in the commer- more than 1,400 hours of productions. Spain, PRISA TV operates under the cial television sector. Furthermore, and brand CANAL+, and in Portugal the chiefly through TVI Internacional, the company is present in the commercial channel has expanded its distribution Rapid advance of yomvi television network TVI, through CAPI- to reach Portuguese communities living TAL MEDIA group. in other countries, and has launched During 2013, YOMVI has dramatically +TVI, a new entertainment channel increased its presence on new devices CANAL+ continues to lead the Spanish created for the Pay-TV market in Portu- and its robust performance runs in tan- audiovisual market with a multichannel gal, and which is broadcast exclusively dem with the successful penetration of offer delivered via satellite to more than on the ZON platform. In 2013, TVI24 re- CONNECTED TV, from SAMSUNG TV 1.6 million subscriber households. This gistered its best year ever with a share and LG, and of mobile devices such as year CANAL+ has signed important of 1.7% and the channel expanded its iPad or iPhone. agreements to expand its audiovisual broadcasts to include Angola, Mozam- content and its multichannel offer, and bique and Cape Verde. In addition, this year the company has it has committed itself to the develop- begun measuring the consumption of ment and implementation of new tech- With regards to Media Capital’s radio video on demand (VOD) after a major nology applications that will enhance stations, Rádio Comercial maintained agreement with the company Rentrak. the user experience of its customers. its absolute audience-share lead and VOD tracking has revealed that the the The company has also rolled out YOM- proved to be the most successful me- weekly VOD consumption via YOMVI VI - CANAL+’s ambitious foray into the dia brand on the social networks. The has gone from 500,000 at the begin- connected universe - to include new de- ning of the year to more than 1 million vices and has expanded its distribution YOMVI registered by the end of 2013. This increase in through OTT services. 30 million VOD downloads consumption occurred primarily from the third quarter onwards, coinciding The company has also invested enor- during 2013 with the start of football season and mous efforts in optimizing CANAL+ inte- the debut of new series. Finally, the 30 ractive services over the course of this year. Highlights in this area include: the new version of the electronic program guide, which displays faster in 16:9 and HD formats; and the option of remote recording, which enables customers to program their iPlus decoder from anywhere.

In addition, after a 20-year history of of innovation and commitment to providing its clients with all the latest technological advances, Canal + this year entered the world of 4K technology.

During 2013 GRUPO CANAL+ reported revenues totaling 1,166 million euros, with EBITDA of 28 million euros. The number of CANAL+ DTH subscribers at year end was 1,620,632. On

48 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

million VOD downloads registered during 2013 has allowed YOMVI to confirm that its offer is in clearly line with what users demand.

Futbolín, an award-winning production

RISA TV closed the year with the thea- trical release in Spanish cinemas of the film Futbolín, the first project by Juan Jose Campanella after winning an Os- car for The Secret in Their Eyes. This Spanish-Argentinean co-production, in which CANAL+ participated through Plural Entertainment, went on to win the Goya, awarded by the Spanish Film Academy, for Best Animated Film. In addition, the Argentinean Film Academy also honored the film with the awards for Best Adapted Screenplay (Juan José Campanella, Eduardo Sacheri and Gaston Gorali), Best Sound (José Luis Díaz) and Best Original Score (Emilio Kauderer).

All the best sport, all the latest technology and a winning team

CANAL+ signed a series of important deals to bring its customers all the best sports content. This season, CANAL+, the true home of football, has maintained its fantastic offer and a has made an even greater commitment to techno- scored the broadcast rights for the Eu- Antoni Daimiel, David Carnicero, Iñaki logy. Thus, tools like LIBEROVISIÓN (to roleague Basketball. Furthermore, the Cano y Nicola Loncar, Miguel Angel Ca- analyze tactical moves), VIRTUAL PRE- network renewed its rights for the exclu- lleja, Hugo Costa, etc. SENTER (puts CANAL+ presenters right sive broadcast of the NBA on pay tele- down there in the game), HIGH SPEED vision, bringing fans all the best games CAMERA (captures up to 2,000 images via YOMVI. And, as always, Canal+ CANAL+, premium content to suit per second for capturing otherwise im- has maintained its commitment to the every viewer perceptible details) and SOCIALFÚT- very best in sport: the Super Bowl, Wim- BOL (measures fan mood and sentiment bledon, Masters Golf, Diamond League Major film productions were once again, on social networks) have further de- Athletics and Six Nations Rugby. this year, the true stars of CANAL+’s monstrated CANAL+’s firm commitment schedules. The ten most-viewed pre- to football. And the channel signed up top com- miers of 2013 were: The Impossible, mentators and specialists who now Skyfall, Safe House, Jack Reacher, In addition to broadcasting the Liga join the best team in sports television Snow White and the Huntsman, The Life BBVA, the Liga Adelante, the Copa, the in Spain: Carlos Martínez, Michael Ro- of Pi, The Hunger Games, American Pie: Champions, the Premier, the Bundes- binson, Nacho Aranda, Julio Maldona- The Reunion, Men in Black 3, and The liga and the Serie A, in 2013, CANAL+ do, Noemí de Miguel, Santi Cañizares, Descendants.

49 Sustainability Report 2014 Year in review PRISA, a global group

Alongside great cinema, sports and CANAL+ series, a meeting place Hit shows hitting the CANAL+ Series series, CANAL+ also made room for for fans screen include: The Blacklist, Orange other types of content such as great do- is the new black, Breaking Bad, Nas- cumentary series, concerts by national This year, CANAL+ has expanded its hville, House of life, Ray Donovan, and international performers, the most- offer with a range of new thematic and The Michael J. Fox Show, Getting On, awarded short films and in-house pro- HD channels, most notably the launch of Ja’imie Private School, The Fjällbacka grams produced by CANAL+. Highlights CANAL+ SERIES. This is a must for fans Murders, Masters of Sex, Boardwalk included interviews by Iñaki Gabilondo, of TV series: with movies, marathons, Empire, Rake, Banshee, Girls, Shame- the absurd humor of Ilustres Ignorantes, specials, series in original version with less, The Newsroom, Game of Thro- the top-rated Informe Robinson -which subtitles in Spanish and the original lan- nes, Mad Men, Spartacus, The Com- this year celebrates its sixth season and guage, debuts aired simultaneously with puter, Hello Ladies, Boss, True Blood, has already become a benchmark for the U.S. broadcast, behind-the-scenes Looking, Archer, House of Cards, sports journalism- the magazine show reports, new releases, shows from all Treatment, Political Animals, web The- Tentaciones and CANAL+’s reports by genres and nationalities, in-house pro- rapy, Fringe, Weeds, Episodes, and Jon Sistiaga. ductions, and innovative formats. Little Britain, etc.

España en serie (Spain in series) 1. Lo imposible. an original new canal + 2. Futbolín. production 3. Introducing of the new season Soccer in CANAL +. CANAL+ continues with its commitment to quality original productions, which began with the multi-award-winning Crematorio, with the presentation of España en serie (Spain in series), a grand tour through the history of Spa- nish television series and the society in which they were created.

España en serie is a documentary series of 4 episodes. Production involved conducting in-depth interviews with around 100 professionals including 1 2 actors, directors, creators and writers, who recall how they created the fictio- nal characters who, for 50 years, have accompanied Spanish viewers every night.

Media Capital

Media Capital group is market leader. During 2013, Grupo Media Capital companies have worked on strengthening and creating synergies, bringing together the best of each to develop unique projects whose results were extremely positive, both internally and with consumers. Of particular note in this area, were the efforts of TVI and 3 MCD, both of whom made considerable

50 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

headway to integrate their respective on dramas and soap operas, news, en- were also audience-share leaders with editorial and commercial departments, tertainment and sport. With regards to 38.8% (1,340,000 viewers) and 37.6% thereby developing synergies, and le- dramas and soap operas, the network (1,400,000 viewers). veraging their respective digital and has continued its strategy of bringing content know-how to create innova- such content to prime time, with the In sports programming, TVI broad- tive and interactive apps. MCD incor- broadcast of highly successful shows cast the best free-to-air football from porated the Group’s radio sites into such as Destinos Cruzados, Mundo ao the Champions League and the Portu- its own network of sites, an important Contrário, Belmonte and I Love It, the guese league, the “Taça da Liga”. The step towards a more efficient develo- latter a teen drama broadcast in prime Champions League matches exclusi- pment of shared content and services time. vely broadcast by TVI in free-to-view between Media Capital channels and (with respect to the 2012/2013 and products. In terms of news programming, “Jor- 2013/2014 seasons) had an average nal da Uma” and “Jornal das 8” led in audience share of 41.9% (more than 2 In the music sector, the Farol label has their respective schedules, with shares million viewers). Matches from the Liga taken advantage of the radio brands of 27.6% (694,000 viewers) and 26.2% Portuguesa, meanwhile, recorded a and of TVI content to bring out a ran- (1,165,000 viewers), respectively. 39.7% share. ge of CD’s bearing the radio station Meanwhile, “Reporter TVI” (investiga- brands. As for video production, Me- tive reporting), broadcast weekly, sco- TVI 24 dia Capital embarked on a thorough red an average audience of 1,390,000 reorganization, and began adapting its viewers. Media Capital’s rolling news channel, structure so as to achieve a greater fle- TVI24, had its best year ever, with an xibility that will both improve profitabi- Flagship entertainment formats re- average audience share of 1.7%, im- lity and endow it with a more advanta- ported record audiences in prime time. proving its position during the whole geous operational capacity to respond The third season of “A Tua Cara Não é day and in prime time. TVI24 reinfor- to future challenges. Estranha Me” had an average audien- ced its news services and consolidated ce share of 37.9% (1,300,000 viewers) its opinion and debates programming. Thus, Grupo Media Capital ends 2013 and reality shows “Big Brother VIP” In addition, the channel expanded its more united, stronger and better equip- and “Secret Story-Casa dos Segredos sports content, in collaboration with ped to face an increasingly demanding IV” registered market-leading shares of TVI. In 2013, the TVI24 network also market. 37.5% and 35.4%, respectively. From expanded broadcasts to include An- Monday to Friday, “Você na TV” (mor- gola, Mozambique and Cape Verde. In 2013, Media Capital had revenues nings) maintained its leadership with a of 181.7 million euros and EBITDA of market share of 30.6% and “A Tarde é The TVI24 website and its apps recor- 40.7 million euros. Advertising reve- Sua” (in the afternoons) secured a sha- ded significant growth rates and have nues amounted to 102.7 million eu- re of 23.2%. During the weekend, the broken audience and downloads re- ros. space “Somos Portugal“ -a live program cords. By the end of 2013, TVI24 apps that travels the country from north to had registered 182,000 downloads. TVI maintains its leadership for the south- was leader in its timeslot with an ninth consecutive year and expands average audience share of 27.8%. TVI Internacional expands its presence distribution The big TVI galas - “Gala Aniversá- TVI Internacional strengthened its pre- TVI was undisputed leader in 2013, en- rio: 20 Anos” (broadcast on the day of sence in Europe, with its entry into the joying a considerable lead over its nea- its twentieth anniversary) and “Gala Spanish market and into new platforms rest competitor. Its contents embrace das Estrelas: Missão Sorriso” (broad- in Luxembourg and France. In an effort a wide variety of genres with a focus cast at Christmas for charitable ends) to bring the best of drama, entertainment

51 Sustainability Report 2014 Year in review PRISA, a global group

Meanwhile, EMAV (Plural’s technical arm) and EPC (stage and set design) have had a strong year, specifically with imaging services for sports competitions -such as the Portuguese Liga, the Champions League and the Snow- board World Championships- in the case of EMAV: and, in the case of EPC, the building of important sets for entertainment programs, dramas and series. Both companies attracted new customers and expanded their business to new countries and markets.

Activity in Spain

In Spain, Plural has produced programs for a variety of genres, including entertainment, drama and soap operas, news, sports, reality shows and news to markets where Portuguese- Plural Entertainment and documentaries: a total of about speaking communities have a significant 800 hours of production, among which presence, in 2013 TVI Internacional be- Plural Entertainment maintains its po- are programs like “Big Brother”, “Torres gan broadcasting in the US, Australia sition as one of the largest audiovisual y Reyes”, “Por la cara”, and “Deportes and New Zealand. The channel is now production companies in Iberia, parti- Cuatro”. available in 11 countries (4 continents) cularly in the area of dramas and soap and on 23 distribution platforms. operas in Portuguese and in entertain- Plural’s clients include the leading Spa- ment in Spanish. Alongside its activity nish and Portuguese television net- Ficção TVI and TVI + in Spain and Portugal, Plural also ope- works, and its projects are renowned for rates in Latin America and in the U.S. the originality of their scripts, modern TVI Ficção, the Pay-TV channel available image processing, and careful execu- on the MEO platform, combines the best In 2013, one of its made-for-TV movies tion. Plural’s contents are audience- of drama and soap opera productions from won the award in the category for Best share leaders in a range of different tar- TVI with new interactive solutions from the Fiction at the Prix Italia awards, while gets and at different times. MEO platform specifically developed to in- the animated 3D film “Futbolín”, co-pro- crease the interaction of the audience and duced by Plural, Jempsa, Atresmedia Other business increase user satisfaction through access Cine and Jorge Estrada Mora Produc- to exclusive MEO services. Launched in ciones (Argentina), won a Goya for Best media Capital’s success in the audio- October 2012, TVI Ficção, in 2013, had Animated Film. visual area has also been matched by an audience share of 0.6% (among pre- success in the areas of radio, digital and mium Pay-TV channels). Activity in Portugal music, and events.

In January this year, Media Capita laun- In 2013, Plural has strengthened its Media Capital Rádios (MCR) was ched +TVI, a new entertainment channel lead, consolidating its position as a audience leader for the second year created for the Pay-TV market in HD with leading producer in Portugal, with over running in the Portuguese radio mar- exclusive distribution through the ZON 630 hours of content produced. The ket via its station Radio Commercial, platform. +TVI combines content in Por- company’s productions set the stan- which reported a 15% audience sha- tuguese with international productions in dard at both a national and international re. m80 closed 2013 with an average recognized formats. level. In addition to dramas and soap audience share of 4% and SmoothFM, operas, Plural produced a wide range MCR’s most recent initiative, was well In 2013, TVI Ficção and +TVI began of entertainment content, especially for received by listeners and expanded its broadcasts for the Portuguese-speaking TVI Ficção and +TVI, as well as adver- network coverage. All radio networks countries Angola and Mozambique. tising content. organized and supported important

52 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

musical events throughout 2013, thus generating greater outreach to listeners. The group’s stations’ presence at major music festivals and concerts and the flagship m80 festival are prime examples. Radio Commercial is also a leader among media on Facebook, and its videos registered 9.5 million views on youtube.

In the Digital sector, this year Me- dia Capital’s sites together recorded a monthly average of more than 400 million page views (up 74%). In addition, throughout 2013, video content on Media Capital Digital (MCD) sites registered over 115 million views. Du- ring 2013, Media Capital Digital main- TVI celebrates his 20th Anniversary. tained its capacity to innovate and create new interactive applications for TVI and TVI24 content across multiple new Tony Carreira CD, “Tony Carreira-25 platforms and devices, which registe- Anos” which garnered four platinums, red significant results in the number and the album from Liliane Marise, a TV of downloads. In addition, MCD deve- character from TVI who was a hit with loped a range of publishing projects, the public and earned a gold disc. Farol such as blogs by leading TVI figures, held onto their lead in Portuguese music and sites related to the content of TV and in compilations, most resulting from productions, thereby providing unique the leveraging of synergies with TVI and interactive experiences and cross-sec- MCR. In the events sector, Media Capital tor content. Musica e Entretenimento triumphed once again with the MEO Spot event, with 57 With regards to Music and Entertain- events held at two different venues, which ment, the highlights were the launch the drew in more than 100,000 people.

Management team

Chairman: Manuel Polanco CEO: Pedro García Guillén Director of Communications, PRISATV: Purificación González CEO of CANAL+: Manuel Mirat Managing Director of Contents and Rights Acquisitions, CANAL+: Álex Martínez Roig

Managing Director of YOMVI: Guillermo Mercader CEO of mediacapital: Rosa Cullel

53 Sustainability Report 2014 Year in review PRISA, a global group

Television (Spain)

Suscribers % Penetration

IPLUS 630,005 38.9%

Source: internal ellaboration

CANAL+: number of suscribers

Dec. 2013

Subscribers CANAL+ satellite 1,620,632

Suscribers CANAL+ OTT 28,399

Source: internal ellaboration

CANAL+: average revenue per subscriber per month

Euros

Annual ARPU satellite 42.7

Source: internal ellaboration

CANAL+: cancellation rate

Dec. 2013 Dec. 2012

CHURN at year end, satellite 18 15.4

Source: internal ellaboration

54 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Audiovisual Production Plural Entertainment (Hours produced)

Portuguese

2013 638,9

2012 718,9

Spanish

2013 797,7

2012 728,2

NOTE: In 2011 there were 2,000 hours related to chip that are not covered in 2012

Television in Portugal (january-december)

24 hours Prime Time

TVI 40.2% 41.2%

SIC 34.6% 39.4%

RTP 1 21.1% 15.9%

RTP 2 4% 3,4%

55 Sustainability Report 2014 Year in review PRISA, a global group Good Corporate Governance

Shareholder structure of Bilbao and Valencia) and in New York converted to a Class A share. If con- PRISA (in the latter case through ADRs, version occurs obligatorily during the American Depositary Receipts). last conversion window, each Class The capital and shareholder structure B will be equivalent to between 1 and of PRISA is currently equipped with a These shares may be converted into 1.33 Class A ordinary shares, depen- range of existing financial instruments. Class A ordinary shares at the option ding on the price at which they are As of December 31, 2013, PRISA share of the shareholders, with conversions listed. capital is divided into: available to investors every month until expiration in May 2014, the man- Class B shares are entitled to a gua- Class A ordinary shares: a total datory deadline for conversion of all ranteed minimum dividend, payable of 740,659,416 shares listed on the Class B shares. Thus, these shares in shares (valued at one euro), in Spanish stock exchanges (Madrid, will be mandatorily converted into cash or in a combination thereof, at Barcelona, Bilbao and Valencia) Class A shares during the month of the option of the company, amoun- and in New York (in the latter case June 2014. The conversion rate of ting to 0.175 euros per share. through ADRs, American Depositary Class B shares to Class A ordinary Receipts). shares depends on the time of con- Also, to December 31, 2013, the Com- version and the price at which the pany had the following financial instru- Non-voting Class B shares: totaling Class A shares are listed. If the con- ments: 312,001,056 convertible and non-vo- version takes place during one of the ting shares, and listed on the Spanish monthly windows for voluntary con- PRISA Warrants: issued under the stock exchanges (Madrid, Barcelona, version, each Class B share will be capital increase agreement adopted

56 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

at the Extraordinary Shareholders of the minimum dividend recognised “PRISA Shareholder agreement” sig- Meeting on November 27, 2010, to the Class B shares by means of ned on December 22, 2011 (in which PRISA Warrants have PRISA Class the delivery of Class A shares, as Rucandio indirectly holds the majority of A shares as underlying titles. Their well as the eventual adjustment of votes), and whose terms were commu- exercise price amounts to 2 eu- the conversion ratio in the necessary nicated to the CNMV. ros and they may be exercised on conversion of the Class B convertible a monthly basis during any of the non-voting shares, and the exercise monthly windows (up to the date of or conversion of the necessarily con- Share performance during their expiration in June 5, 2014). PRI- vertible bonds that convert to Class exercise and shareholder SA Warrants quote on the platform of A shares of the Company issued in remuneration during the year the Spanish Stock Warrants. June 2012 The most representative price (by num- Convertible Bonds 2012: issued The PRISA 2013 Warrants have ber of shares and liquidity) is that of under the resolution of the Ordi- been subscribed by 16 institutional Class A common stock, listed on the nary Shareholders’ Meeting of June investors and are not admitted to tra- Spanish.stock exchange. 30, 2012, which endorsed a resolu- ding on any secondary market tion to increase share capital by the PRISA’s Class A Common Stock star- amount necessary to meet conver- As of December 31, 2013, according to ted the year with a price of 0.24 euros sion into Class A ordinary shares up information made available by the Spa- (2 January 2013) and closed the year to an initially envisaged maximum of nish National Securities Commission with a price 0.40 per share (31 Decem- 421,359,223 shares. The bondhol- (CNMV), the significant shareholders of ber 2013), which represents a price ders may request their conversion in- PRISA, is show in the right table. increase of 66.7%. This performance to Class A shares at any time before compares to a growth for the Spanish the final maturity date (July 2014). In Rucandio, SA is holds its investments market (IBEX 35) of 17.4% over the sa- this case, the Company shall issue through the following entities: me period. Class A shares resulting from the conversion price within the month Promotora de Publicaciones, SL, The performance of PRISA’s share following the request of early conver- holder of 77,248,921 voting rights, price has been very varied over the sion.The price of the PRISA shares representing 10,429% of the share different quarters of the year, showing for purposes of conversion will be capital with voting rights. falls of 6.2% and 2.3% in the first and 1.03 Euros and will be adjusted un- second quarter, and growth of 62% and der certain circumstances provided in Timón, SA, holder of 7,928,140 vo- 23% in the third and fourth quarters, the resolution. ting rights, representing 1.070% of respectively. the share capital with voting rights PRISA Warrants 2013: in the con- The evolution of the market price of the text of the refinancing of PRISA’s Asgard Inversiones, SLU, holder of Class A ordinary shares of Grupo PRISA bank debt, the Extraordinary Mee- 27,662,101 voting rights, represen- compared with the evolution of Ibex 35, ting of PRISA Shareholders, held on ting 3.734% of the share capital with over the course of 2013, both indexed December 10, 2013, adopted a reso- voting rights to 100, is shown in the right graph. lution to issue warrants that incorpo- rate the right to subscribe to Class A OTNAS Inversiones, SL, holder of The company has made no remune- ordinary shares newly issued by the 93,000,000 voting rights, represen- ration to shareholders of class A Company. ting 12.556% of the share capital with stock. voting rights The number of PRISA Warrants 2013 Class B shareholders have received, issued is 215,605,157, which confer Rucandio Inversiones SICAV, SA, paid in shares, a minimum guaranteed on holders the right to subscribe to holder of 339,094 voting rights, re- dividend of 0.175 euros per share, as the same number of Company Class presenting 0.045% of the share capi- agreed on the date of issuance of the A ordinary shares, as well as a num- tal with voting rights. Class B shares. This dividend was paid ber of additional Class A ordinary sha- in PRISA Class A shares, at 1 euro per res to a maximum combined total of Furthermore the indirect holding decla- share, as approved at the General 372,661,305, subject to the increase red by Rucandio includes 28,088,522 Meeting held in July 2012 (which gave in capital derived from the payment voting rights of PRISA subject to the the company the option of paying the

57 Sustainability Report 2014 Year in review PRISA, a global group

aforementioned dividend in cash, in Company’s corporate governance stra- the improper use of inside information and shares valued at 1 euro per share or a tegy. The Committee proposes a range to resolve possible conflicts of interest. combination of both). of measures aimed at improving the corporate governance of the Company, This Codes of Conduct is applicable to The payment of the annual dividend and these are now being implemented members of the Board of Directors and on Class B shares took place in Sep- by the Board of Directors and all other senior management and may also be tember 2013, although given the possi- committees. applied to corporate department heads bility of converting B shares to A shares and other managers or employees of during conversion windows taking place During 2013 the Corporate Governan- the Group who may have access to pri- every month, and given the obligation ce Committee has focussed its efforts vileged information. of the company to remunerate all outs- on examining the new regulatory fra- tanding dividend payments at the time mework on corporate governance and The Secretary General of the Group will of the conversion of the shares, PRI- on the analysis and practical implemen- oversee compliance with the Codes of SA has made payments of dividends tation of new obligations involving infor- Conduct included in this Regulation. to its shareholders in each of the Class mation and transparency that affect the B conversion windows, whenever re- Company. Code of Conduct quests for voluntary conversion have been made. This establishes general guidelines Internal company regulations that govern the conduct of PRISA and In 2013, the minimum guaranteed di- all Group employees in compliance vidend for the year 2012 for the Class The company is governed according with their duties and their business and B shares was paid out in shares amoun- to its Articles of Association and the fo- professional relationships, and in acting to a total of 54,990,280 Class A or- llowing regulations: cordance with the laws of each country dinary shares Likewise, the minimum while also respecting generally recogni- dividend due on Class B shares whose General Shareholders’ Meeting zed ethical principles. voluntary conversion was requested du- Regulations ring the year 2013, has resulted in the The values and principles that should issuance of a total of 6,330,624 Class A These regulate the principal norms for guide the actions of employees of the ordinary shares. the convocation and conduct of General Group are integrity, honesty, rigor and Shareholders’ Meetings, establishing dedication to the pursuit of business, that the “General Shareholders’ Mee- responsibility, commitment and trans- Formal policies for Good ting is the supreme sovereign body of parency, pluralism and respect for all Governance the company and compliance with its ideas, cultures and persons, creativity decisions is obligatory for all sharehol- and innovation in business develop- The principal objectives of Corporate ders”. ment, and responsible, efficient and Governance for Grupo PRISA are effi- sustainable development, thereby ge- cient administration and the provision of Board of Directors Regulations nerating shareholder value and value timely information, allowing the Group for the Group. to respond to the needs of investors The purpose of these regulations is and analysts as well as to comply with to determine the principles on which The General Secretariat of the Group legal disclosure requirements for regu- the actions of the Board are based, regularly reports to the Corporate Go- lated securities markets. The Group has the rules of its organization and the vernance Committee on its ongoing established professional management functions and norms of conduct of its monitoring and on compliance with the structures of proven effectiveness and members. rules by employees. The Corporate Go- expertise. It has developed a corporate vernance Committee conducts an an- communications policy providing mar- Internal Code of Conduct for Securities nual report on this evaluation and the ket agents with the tools and informa- Market Issues degree of compliance with the Code of tion necessary for analysis and inves- Conduct, which is then communicated tment decision-making. This establishes the Codes of Conduct to the competent governing bodies of for issues related to securities markets. PRISA. The company has a Corporate Gover- It includes regulations for the timely and nance Committee, whose functions in- accurate communication of company include the overseeing and improving the formation to the markets, in order to avoid

58 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Significant shareholders of PRISA

Number of voting rights Voting rights percent Direct Indirect

Rucandio, S.A. (*) - 234,266,778 31.629

BH Stores IV, B.V. 28,422,994 - 3.837

Inmobiliaria Carso, S.A. de CV 8,665,000 6,030,000 1.984

Information released in CNMV, december 2013

Evolution of the market price of the Class A ordinary shares

190

170 PRS 150

130 IBEX 110

90 70

50 JANFEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Source : Bloomberg (January 2, 2013, January 31, 2013.)

59 Sustainability Report 2014 Year in review PRISA, a global group

Corporate Governance and digital), will adopt the necessary muneration Committee reports on all Recommendations measures to ensure fluid communica- appointments and resignations, retire- tion with the plurality of social interests ments and removals of directors (Article Through the Annual Corporate Gover- and concerns. To this end, the Group’s 25 Board of Directors Regulations). nance Report (ACGR), the company re- media outlets will keep channels of ports on the degree of compliance with communication permanently open to corporate governance recommendations. these interests. Composition of the Board Since the 2007 report, the company has taken on board and been guided by the Various members of the administrative The structure of the Board of Direc- recommendations outlined in the Unified and management organs of the com- tors, the Delegate Committee and other Code on Good Corporate Governance pany hold executive functions that in- Committees has been reorganized, issued by the Comisión Nacional del Mer- volve them directly in the company’s due to the resignations of the members cado de Valores (CNMV) in May 2006. media organizations. This puts them in Matías Cortes, Martin Franklin, Harry a position of constant communication Sloan y Nicolas Berggruen, y de la in- Of the 53 recommendations currently in with stakeholders. corporación de los consejeros, and the force, the Company fully complies with 42. addition of new members, Claudio Boa- Of the 10 remaining recommendations, In recent years, increasing amounts of da Pallerés, John Paton and Roberto one do not apply to the Company, six have information about the company’s Corpo- Lázaro Alcántara Rojas. been partly addressed and three have not rate Social Responsibility policies have been met, predominantly due to structural been made available. This will continue Also in 2013, Iñigo Dago Elorza and factors and matters of internal regulation. to be the case, as we provide the public Carlos Palacios Ulecia resigned as non- with improved and more complete infor- executive secretary and as non-execu- Furthermore, since our common and mation about PRISA’s CSR policies. tive deputy secretary, respectively, and convertible shares are classified as were replaced in those positions by An- American Depositary Shares (ADS) on Since 2008, the Report on Corporate tonio García-Mon Marañés and Teresa the New York Stock Exchange, PRISA Social Responsibility has been submit- Diez-Picazo Giménez. meets the standards of corporate go- ted to the Board for its approval, after vernance and information set out by being analyzed by the Corporate Go- The current composition of the Board is U.S. legislation (Securities Exchange vernance Committee. reflected in the right table. Act of 1934 and the Sarbanes-Oxley Act of 2002), as well as those governing Said Committee is increasingly beco- The Board of Directors shall be made corporate governance at the NYSE. ming involved, with ever greater tho- up of a minimum of three and a maxi- roughness, in corporate responsibility mum of 17 members, determined at the policy. The Regulations of the Board of annual shareholders’ meeting. Their Criteria for actions by the Board of Directors expressly confer the power number shall be decided and they shall Directors “to monitor, promote, guide and over- be appointed by the AGM. see the performance of the Company As indicated in the Board of Directors in the area of corporate social respon- The Board is currently made up of Regulations, the actions of the Board sibility and sustainability, as well as 15members, including three executive must be subject to the following crite- corporate reputation, and report the- members, three directors representing ria: compliance with corporate purpose, reon to the Board of Directors and the controlling shareholders, and nine inde- defense of the long-term viability of the Executive Delegate Committee, as ap- pendents. In accordance with U.S. law company and the enhancement of its propriate”. (which only contemplates the position real value, safeguarding the identity and of executive and independent Board professional, ethical and editorial princi- members), the Board consists of three ples of the Group’s media. Board of Directors and executive members and 12 non-execu- Management Team tive, independent directors.

Corporate Social Responsibility Company directors are appointed by Company directors come from a wide Policy the Executive Chairman or CEO who variety of academic and professional are granted this authority under Articles backgrounds. Their CVs may be viewed The management of each business unit 10 and 11 of the Board of Directors Re- on the company website (www.prisa. (publishing, press, radio, audio-visual gulations. The Appointments and Re- com).

60 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Composition of the Board of Directors

Appointments and Corporate Delegate Audit Condition Remuneration Governance Comittee Comitee Committee Committee

Executive Juan Luis Executive × Chairman Cebrián Echarri Director

Manuel Executive Vice-president × Polanco Moreno Director

Fernando Executive CEO × Abril-Martorell Director

Roberto Lázaro Director Representing × Alcántara Rojas Controlling Shareholders

Juan Arena Non-executive × de la Mora Independent Director

Claudio Non-executive × Boada Palleres Independent Director

Arianna Non-executive × Huffington Independent Director

José Luis Non-executive × Leal Maldonado Independent Director

Gregorio Marañón Non-executive × × y Bertrán de Lis Independent Director Members Non-executive Alain Minc × × × Independent Director

Agnès Director Representing × × Noguera Borel Controlling Shareholders

John Non-executive × Paton Independent Director

Borja Director Representing × Pérez Arauna Controlling Shareholders

Emmanuel Non-executive × Roman Independent Director

Ernesto Non-executive × Zedillo Independent Director

Non-executive Antonio García-Mon secretary Marañés

Non-executive Teresa Díez-Picazo deputy secretary Giménez

61 Sustainability Report 2014 Year in review PRISA, a global group

Executive Delegate Committee Appointing Members Board Director, unless the nomination and Board of Directors comes from the Board of Directors. Committees Members are appointed by the AGM or, provisionally, by the Board in accordan- Appointment of Outside Directors PRISA’s Board has established a num- ce with the stipulations in the Companies ber of committees: i) an Executive Dele- Act, Ley de Sociedades de Capital y los The Board of Directors and the gate Committee, ii) an Audit Committee, Estatutos Sociales. Appointments and Remuneration Com- iii) a Corporate Governance Committee, mittee shall, within the scope of their and iv) an Appointments and Remunera- Motions for the appointment of directors powers, ensure that all candidates are tion Committee. are submitted by the Board of Directors persons of recognized competence and to the shareholders’ meeting and the experience. Details of the composition and responsi- appointment decisions adopted by said bilities of the Executive Delegate Com- body by virtue of the powers of co- It is the Corporate Governanc Com- mittee and of the other committees, as optation legally attributed thereto, will mittee’s task to assess the skills, well as meetings held over the course of be in accordance with the provisions of knowledge and experience required to 2013, are available in the ACGR. this Regulation and shall be preceded by sit on the board, and define, therefore, the appropriate proposal or report from the duties and qualifications required of The Audit Committee, the Corporate Go- the Appointments and Remuneration the candidates to fill each vacancy and vernance Committee, and the Appoint- Committee or the Corporate Governance evaluate the time and dedication neces- ments and Remuneration Committee Committee, as applicable, and shall not sary for them to carry out their duties. have all published reports describing be binding. their functions and activities over 2013. Re-election of directors In accordance with Article 15 bis of the Appointing and removing board members Articles of Association, 75 per 100 of the Motions for the reelection of board voting shares present or represented at members are submitted by the Board Chapter VI of the Board Regulations de- the General Meeting shall be required of Directors to the shareholders mee- tails the procedures for the appointment to amend the administrative body of the ting and shall be subject to a favorable and removal of Board members. Company and for the appointment of a opinion issued by the Appointments and

62 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Remuneration Committee, who will as- When in the course of a year they all discussion and voting on such mat- sess the performance of the directors fail to attend more than two mee- ters. over their previous mandate. tings of the Board of Directors, the Delegate Committee or any All votes of the Board that relate to the Term other Committee on which they sit, appointment, re-election or removal of without just cause. directors shall be secret if so requested Members shall maintain their posts for by any member and without prejudice to a term of five (5) years and may be re- When their remaining on the Board the right of all directors to put their vote elected. The appointment of directors is deemed inappropriate, under the on the record. by co-optation is subject to ratification terms of Article 33.5 of the Board by the first General Meeting following Regulations, and may directly, indi- his or her appointment. rectly or through third parties asso- Information ciated with the Board Member, impe- Directors shall offer their resignations to ril the loyal and diligent exercise of The company’s Annual Corporate Go- the Board of Directors when their term his or her functions with regards to vernance Report (ACGR) provides de- is completed, or when the General Mee- company interests. Under the terms tailed information on the shares held by ting, subject to its statutory powers, de- of the aforementioned Article 33.5, the board members in the company, the cides to relieve them of their post. in all those situations where there posts they hold in the different PRISA exists a conflict of interests, or one companies, as well as posts and stakes Retirement and removal may be reasonably be expected to held in other companies, analogous or exist, and this is deemed to consti- complementary to the Group’s mission. Directors shall offer their resignations to tute a structural and permanent con- The ACGR also provides information the Board of Directors when their term flict between the Board Member (or about the overall remuneration of Board is completed, or when the General Mee- between an associate, or in the case members (without prejudice to the moting, subject to its statutory powers, de- of a director representing controlling re detailed and individualized informa- cides to relieve them of their post. shareholders, a shareholder who tion as reflected in the Remuneration proposed his or her appointment, or Policy Report, as described below), Directors shall offer their resignations to any other party directly or indirectly on the guarantee or protection clauses the Board of Directors and, if deemed related to him or her) and with the of which they are beneficiaries and on appropriate, formally resign in the fo- Company or Group companies, said transactions which they may be party to. llowing cases: Member will be deemed to have failed to fulfill the duties inherent in his When they are subject to any of the or her post. Conflicts of interest legally established prohibitions or grounds for disqualification. The Board of Directors shall not propose Situations that may involve a conflict the removal of any independent director of interest, for both Company directors When based on a criminal offense before completing the term of office, as and significant shareholders, are pro- they are indicted in ordinary felony set forth in the bylaws, for which he or vided for in the Board Regulations and proceedings or have been convicted she was appointed, unless the Board in the PRISA’s Internal Regulations for in a misdemeanor proceeding. deems that there is just cause for doing Conduct Relating to Securities Markets so and after seeking the opinion of the and its Group of Companies. When they have received a serious Corporate Governance Committee. In reprimand from the Board of Direc- that regard, just cause shall be deemed Directors must notify the Company of tors for failure to fulfill their obliga- to exist when the director has failed to any situation that may involve a conflict tions as Directors. fulfill the duties inherent in his post. of interest.

When the reasons for which they Committee members shall leave their Professional or commercial transac- were appointed have ceased to posts when they cease to be directors. tions, be they direct or indirect, con- exist and, in particular, when an in- ducted between directors (or persons dependent director or a director re- Objectivity and secret voting linked or related to them, when such presenting controlling shareholders transactions amount to more than loses his or her respective status as Directors affected by proposals for re- 60,000 euros) and the Company or any such. election or removal will be absent during of its subsidiaries, must be authorized

63 Sustainability Report 2014 Year in review PRISA, a global group

by the Board of Directors, subsequent and affiliates. This excludes positions approve the annual remuneration policy to a report from the Corporate Gover- in companies that that have a stable of the Board of Directors and the Manage- nance Committee.Those transactions and significant stake in the shareholder ment team. conducted by persons related or linked structure of the Company. to directors which do not exceed 60,000 In 2013, the Company prepared a remu- euros will require the authorization of Furthermore, the Board of Directors neration policy report with details of indivi- the Corporate Governance Committee. must be made formally aware of any dual directors’ remuneration over the pre- transaction between the Company and vious year. This report was submitted to a Furthermore, Directors shall not partici- a significant shareholder. In no case will vote, on a consultative basis and as a se- pate in deliberations on matters in which the transaction be authorized unless a parate item on the agenda at the Annual they have a direct or indirect interest. report by the Corporate Governance General Meeting of Shareholders held Directors who are affected by such tran- Committee has been issued, evaluating on June 22, 2013, in compliance with the sactions will not exercise their right to the transaction in terms of market condi- Sustainable Economy Act (Ley de Econo- vote, and will remain absent from the tions. However, such authorization from mía Sostenible), which introduced Article meeting room during deliberations and the Board of Directors shall not be dee- 61 ter in the Securities Exchange Act re- voting on all such matters. med necessary for those transactions gulating the Remuneration Policy Report) that simultaneously satisfy the above and was approved with 98.197% of the Authorization of the Board of Directors three conditions (relating to directors). votes in favor. shall not be considered necessary for transactions that meet simultaneously Likewise, and in order to safeguard the The Remuneration Policy Report for the the three following conditions: principle of transparency, the Board will year 2014 will be submitted for appro- publish via a range of channels (finan- val to the Annual General Meeting to a. They are conducted under contracts cial information, annual corporate go- be held this financial year. This report, whose terms are standardized and vernance report) a summary of all tran- which has been prepared in accordan- apply en masse to many customers. sactions conducted by the Company ce with the new model, both unique and with Directors and major shareholders standardized), approved by the CNMV b. They are conducted at prices or Circular 4/2013, involves an exercise rates that are generally set by the in transparency in the reporting of the person supplying the goods or ser- Evaluation of the performance remuneration of directors with a greater vice concerned. and composition of the Board of degree of justification and detail. Directors c. The amount does not exceed 1% Likewise, the Annual Corporate Gover- of the annual income of the person Evaluation of the performance and nance Report will provide information or entity receiving the service. composition of the Board of Directors, regarding the remuneration of execu- the chair of the board and the top exe- tives and the management team. Fur- Notwithstanding the foregoing, in cases cutive is approved by the Board, after a thermore, the Company also complies where conflict of interest is, or may rea- report from the Corporate Governance, with Article 260 of the LSA (Law of Li- sonably be expected to exist, of such a Committee (articles 5.3 b.x) and 26 of mited Liability Companies), establishing nature as to constitute a structural and the Board Regulations. that the Report must include the “total permanent conflict between the Director overall remuneration” of executives. (or a person related or linked to him/her These periodic evaluations have had a or, in the case of a proprietary Director, positive impact on the organization and the shareholder or shareholders that pro- functioning of the internal organs of the Transparency of Information posed or made his appointment or all tho- Company. se persons directly or indirectly related) Providing relevant information to the and the Company or the companies inte- markets grated in the group, it is understood that Transparency the Director lacks, or no longer holds, the The company will provide the securities competence required to hold office. markets, through the CNMV and SEC, Remuneration Policy with relevant information immediately In addition, the Director may not provi- and prior to its communication by any de professional services to competitors The Board of Directors and the Appoint- other means. This information will also of the Company or of its subsidiaries ments and Remuneration Committee be posted on the PRISA website.

64 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Furthermore, quarterly, twice-yearly and analysts, indicating the share performan- This department also deals with re- annual financial reports will be made ce and payment of dividends. Furthermo- quests for information from the general available to the markets, after review by re, the website contains the information public on a range of issues relating to the Audit Committee and approval by the submitted to the CNMV and the SEC, the Company. Board of Directors. Corporate statutory norms and regulations, information about the Board of Corporate website Directors, the Executive Delegate Com- Shareholder participation mittee, the Audit Committee, the Corpo- The corporate website (www.prisa.com) rate Governance Committee, and the posts all the information the Company Appointments and Remuneration Com- Shareholder voting restrictions puts at the disposal of its shareholders mittee. Information about Shareholders’ and the general public. The site thus Meetings as well as the Corporate Go- There are no specific restrictions on the constitutes a key tool in improving the vernance Reports issued by the Com- exercise of the right to vote for holders communications of the Group with mar- pany are also available on-line. of Class A ordinary shares. Class B sha- ket agents and stakeholders. res are non-voting shares, in accordan- Department of Investor Relations ce with articles 6 and 8 of the Articles of The corporate website provides comple- Association. te information about the activities and (See paragraph dialogue and communi- geographical presence of the Group as cation with our stakeholders). well as the social and cultural initiatives Attendance at the AGM : and projects being carried out. Press Shareholder Services Department releases and news items related to the The Shareholders’ General Meetings Group are also posted. Reporting to the General Secretary, this that the Company holds may be attended Department manages all contact with by those who hold at least 60 shares, on The corporate website also includes a individual shareholders, attending to the condition that such persons are en- special section for shareholders and in- their queries and requests for informa- tered in the corresponding accounting vestors. This section provides Company tion, either in person at our office, or by records at least five days prior to the financial information and presentations to phone, fax, post or email. day on which the Meeting is held, and this record is maintained until the Mee- ting is held. In order to exercise his right of attendance, the shareholder shall be authorised beforehand by means of the corresponding attendance card issued by any of the entities participating in Iberclear, or in any other form accepted by applicable law.

Holders of fewer shares may group together in order to reach the 60-share threshold , appointing a representative.

Each share entitled to vote, either present or represented by proxy at the Ge- neral Meeting, shall have one vote.

Representation of shareholders:

Shareholders may choose to vote by proxy by allowing someone else to cast votes , complying with the requirements and formalities provided for in the Bylaws, the AGM Regulations and the Law.

65 Sustainability Report 2014 Year in review PRISA, a global group

Any such representation will be specific However, the information requested may centage to exercise the minority voting to the meeting concerned. be withheld in certain circumstances, as right established by law, as well as offers set out in AGM Regulations. or requests for voluntary representation. Proxies may be exercised by the shareholder by post or by electronic means of Right to information during the Meeting The FORUM is established to enable commumunication. communication between the sharehol- During their turns to speak, shareholders ders of PRISA (both individual and any Voting by mail or electronic means of may orally request any information or voluntary associations constituted by remote communication clarification that they deem appropria- them under applicable law) during the te concerning the items on the agenda convening period and for the purposes Votes on proposals regarding items on and also regarding the publicly available indicated in the previous paragraph, but the agenda of any General Meeting may information that the Company has sub- it is not envisaged as a mechanism for be exercised by the shareholder by post mitted to the Spanish National Securities electronic conversation between share- or by electronic means of remote com- Market Commission (CNMV) since the holders nor as a forum of virtual debate. munication , provided that the identity of date of the most recent general meeting The FORUM also provides a channel of the person exercising the right to vote and regarding the auditor’s report. communication between the Company is duly guaranteed , and in compliance and its shareholders. with the requirements and formalities Directors shall be obliged to provide the provided for in the Bylaws, the AGM requested information, unless it is not Regulations and the Law. available during the meeting, in which Risk Control case directors shall be obliged to provi- Shareholders who cast their votes remo- de that information in writing within se- tely will be taken into account as being in ven days following the end of the Mee- Control systems and risk attendance for the purpose of constitu- ting, without prejudice to the provisions management tion of the meeting. of the following paragraph. Scope of of the company’s Risk Right to information prior to the Information need not be provided in Management System Meeting certain cases, as stipulated in the AGM Regulations. The Risk Management System works Shareholders may request from the di- integrally by business unit, and is fur- rectors, in writing and up to seven days Information or clarification requested ther consolidated at the corporate level. before the day immediately preceding from directors shall be provided by the the meeting, information or clarification, Chairman, the Chief Executive Officer, The Group carries out an ongoing as- or may seek answers or clarification, the Secretary, or if the Chairman so re- sessment of the most significant risks on questions regarding any matter in- quests, from a director, the chairman of that might affect the company’s chief cluded in the agenda or on any publi- the Audit Committee or any employee businesses. To this end, the Group has cly available information that has been or expert in the matter. designed a Risk Map – a tool provi- filed by the Company with the National ding graphic representation of risks and Securities Market Commission (CNMV) Electronic Shareholder Forum used to identify and evaluate the risks to since the holding of the last General which the different business areas are Meeting, as well as clarification on the On the occasion of the convening of the exposed. auditor’s report. General Meeting, an Electronic Share- holder Forum will be established on the Company bodies responsible for the The requested information will be pro- Company website, which will be acces- development and implementation of vided to the applicant by the Board of sible with due guarantees to both indi- the Risk Management System Directors or by whomsoever they dele- vidual shareholders and any voluntary gate to this end, by any member entitled associations established by them, de- The identification of these risks, and the to do so or by the Secretary. signed to facilitate their communication operative processes through which they prior to general meetings. The forum are managed is the responsibility of the The information will be provided in wri- may include motions to be tabled in addi- senior management of each of the bu- ting up to the day of the Annual General tion to those on the announced meeting siness units as well as overall Group Meeting, through the Shareholders Re- agenda, requests for support for such senior management and is further com- lations Department. motions, initiatives to gain sufficient per- plemented and overseen by the Group’s

66 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Internal Audit Department, which reports and volatility in recent years. Specifically, Spending by advertisers tends to be periodically to the Audit Committee on the main indicators of consumer spending cyclical and is a reflection of the gene- the results of their work.The respective in both countries have undergone signi- ral economic situation and outlook. A managements of the businesses identi- ficant deterioration that have affected, worsening of the macroeconomic situa- fy both those responsible for managing and may well continue to affect, levels of tion in Spain and Portugal could have a each risk as well as all relevant action spending by the Group’s customers on negative impact on forecast budgets of plans and associated controls. their products and services, including ad- the Group’s advertisers. Given the high vertisers, Pay TV subscribers and other fixed costs associated with businesses Principal risks that may affect the consumers of PRISA content. with a high component of advertising in- achievement of business objectives come (mainly Radio and Press), any fall Furthermore, PRISA activities and in- in advertising revenues directly impacts The main risks facing the Group may be vestments in Latin America are ex- operating profits and thus the ability to grouped into the following categories: posed to the evolution of the various generate cash flow for the Group, forcing macroeconomic parameters of each different business units to carry out fre- Strategic and operational risks affec- country including a potential decline quent reviews and adjustments to their ting the Group’s businesses. in consumer spending as a result of a cost base. Financial risks. slowdown in the growth rate of these countries over the medium term. Piracy Strategic and operational risks affecting the Group’s businesses. Deterioration of advertising market Revenues from the exploitation of content and rights owned by the Group are Macroeconomic risks A significant proportion of PRISA re- affected by illicit access to these via venues is derived from the advertising the internet or copying, which primarily The economic situation of Spain and Por- market, particularly in the press, ra- affects the Pay-TV and book publishing tugal has shown a significant slowdown dio, audiovisual and digital businesses. businesses.

67 Sustainability Report 2014 Year in review PRISA, a global group

Competition risk Risk of litigation non-strategic assets, repurchase of debt in the market at a discount, the The audiovisual, education, radio and PRISA is a party to significant litigation, leverage of operating assets, debt newspaper businesses which PRISA which is detailed in the consolidated fi- transfers between tranches, and other operates are all in highly competitive sec- nancial statements for the year 2013. corporate transactions. The contract tors. Similarly, with regard to the Pay-TV Additionally, PRISA is exposed to liabili- contains automatic mechanisms that business, any operations by competitors ty deriving from the content of its publi- prevent early termination under cer- may affect the ability of the Group’s bu- cations and programs. tain circumstances should such com- sinesses in this segment to attract new mitments not be met. subscribers and increase penetration Digital activity and network rate, and may also lead to an increased security systems The contracts governing borrowing cost associated with the acquisition of conditions stipulate that PRISA must new subscribers or the acquisition of te- Digital activities depend on Internet ser- meet certain commitments and finan- levision rights, which could in turn lead to vice providers, online service providers cial leverage ratios (covenants). The- a significant negative impact on the finan- and systems infrastructure. Significant se contracts also include cross-default cial position and results in this area. system failures or security breaches provisions. Additionally, the current re- could have an adverse effect on the financing incorporates formal legal de- Falling circulation operating and financial results of the cision-making mechanisms by qualified Group. majorities in negotiation processes that Revenues from the sale of print press previously were subject to unanimous and subscriptions continue to be Technological risks consent on the part of financial institu- affected adversely by the growth of al- tions. ternative means of distribution, inclu- To maintain and increase the competi- ding free websites for news and other tiveness of its businesses, PRISA must The refinancing agreement also con- content. adapt to technological advances, for templates accelerated maturity, usual which research and development are in these type of contracts, including the Sectoral regulations crucial. Technological changes could acquisition of control of PRISA, unders- lead to the entry of new competitors and tood as the acquisition by a person or PRISA operates in regulated sectors their possible increase in market share group of persons acting together, to and is therefore exposed to regulatory at the expense of the Group. acquire more than 30 % of the capital and administrative risks that could ad- with voting rights. versely affect its businesses. Financial risks As of December 31, 2013, the Group’s Specifically, audiovisual and radio bu- Financing risks bank debt amounted to 3.401 million sinesses are subject to the obligation euros. The level of indebtedness of the to have concessions and licenses for The Group’s financial obligations are Group: the development of their businesses, detailed in Note 12 “Financial debt” in while the education business is subject PRISA’s annual consolidated report for Increases its vulnerability to eco- to the applicable education legislation 2013. nomic cycles and changing market in each country at national or regional trends. levels. As described in the note, in the month of December, 2013, the Group signed an Requires the use of part of the cash Country risk agreement to refinance its debt which flows from operations to meet pay- represents an extension of maturities, ment obligations, payment of inter- PRISA’s operations and investments greater flexibility in the process of redu- est and repayment of principal of the in Latin America may be affected by a cing said debt and an improved liquidity debt, reducing the ability to allocate range of risks typically associated with profile. these flows to meet working capital investing in emerging economies, such requirements, investment and to fi- as currency devaluation, restrictions The refinancing agreement includes nance future operations. on capital movements, inflation, expro- a number of commitments to debt priation or nationalization, tax changes, reduction, and for whose complian- Exposes the Group to fluctuations in changes in policies and regulations, ce the Group has a range of strate- interest rates of the loans financed and instabilities. gic alternatives including the sale of with floating interest rates.

68 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Limits the ability to adapt to changes Exposure to interest rate risk in the Group’s and the business units’ in markets and places the group at a risk maps. This review is conducted by disadvantage relative to less indeb- Approximately 35% of its bank debt is senior management of the Group. ted competitors. at variable interest rates, and therefore the Group is exposed to fluctuations in Risks that have arisen during the year Credit risk and liquidity interest rates. Consequently, in order to reduce its exposure, the Group arran- A number of financial risks arose in The adverse macroeconomic situation, ges interest rate hedges. 2013, including the deterioration of with significant declines in advertising investment in Pay TV and credits ge- and circulation and Pay TV subscribers, Exposure to exchange rate risk nerated by deductions in export activi- has been having a negative impact on ties, as well as the impact on revenues the Group’s ability to generate cash The Group is exposed to fluctuations due to the falling advertising market in flow in recent years, primarily in Spain. in exchange rates basically due to fi- Spain. The advertising-dependent businesses nancial investments in shares in Latin have a high percentage of fixed costs, American companies, as well as re- In 2013 the adverse economic and con- and falling advertising revenues thus venues and results from these inves- sumer-spending environment in Spain, significantly impact on margins and tments. exacerbated in the Pay TV market by in- cash position, hindering the implemen- creasing competition in the acquisition tation of additional measures to improve In this context, in order to mitigate this and offering of content from certain ope- the operational efficiency of the Group. risk, and where are credit facilities are rators and the increase in VAT from 8% Likewise, in the Pay TV business -- in available, the Group arranges hedges to 21%, has had a negative impact on a context of increased costs associated to cover the risk of changes in exchan- the performance indicators for this busi- with the new football exploitation model, ge rates (mainly foreign currency hed- ness. A longer period of time will there- growing competition in the acquisition ges and forwards) on the basis of pro- fore be required to absorb the increased of content and aggressive marketing jections and budgets, in order to reduce costs associated with the exploitation of by certain operators offering content for volatility in cash flows transferred to the football. free in combination with other services Parent. -- the resulting fall in subscriber reve- With regard to deductions for export ac- nues necessarily increases the time Tax risks tivity, in 2013 there were adverse jud- required to recoup those costs. This gments relating to some deductions. would directly affect the liquidity of the The Group’s tax risks are derived from The Group, as detailed in Note 19 of the business, which might therefore require potentially different interpretations of notes for the year 2013, has decided to additional funding. the rules that the relevant tax authori- provision deductions for this item ahead ties might exercise, as well as the ge- of a probable resolution against outs- As part of the agreement to refinance neration of taxable income to allow the tanding resources. debt signed last December, the Group recoverability of the tax credits. Addi- obtained additional credit facilities tionally, a range of tax reforms in Spain Moreover, 2013 saw a continued slump amounting to EUR 353 million to meet has limited the deductibility of interest in the advertising market in Spain, which its liquidity requirements in the medium and depreciation expenses, leading to has had a negative impact primarily on term. additional tax credits. advertising revenue for the Group’s radio and print media businesses. Minority interests in Risk tolerance level cash-generating units PRISA has defined the tolerable error Monitoring and response plans The Group has significant minority inter- of risk with regards to financial informa- for major risks affecting the ests in its cash generating units, inclu- tion. According to this tolerance level, organization ding education and Pay TV. Santillana significant processes and accounts are is required to pay to its minority inter- duly identified by the control system for The Group continually monitors inves- est (25 % of its share capital) a prede- financial reporting. tments and conducts impairment tests termined fixed preferred dividend. The for these at least annually or, where ap- Group has access to Pay TV cash, in For other risks, impact the and the pro- propriate, when impairment indicators which there are 44% minority interests, bability these occurring is assessed in are noted. In this regard, the Group has through dividends. order to determine their relative position assessed, in June and in December, its

69 Sustainability Report 2014 Year in review PRISA, a global group

investment in Pay TV and accordingly of Directors is supported in its work by and authority for the process of finan- duly recorded the impairment detected the Audit Committee. Among the basic cial reporting. by the tests, as described in the report responsibilities of the Audit Committee, for the year 2013. as defined in the Board Regulations, In addition, the Department of Organi- is the monitoring of the effectiveness zation and Human Resources coordi- With regards to impairment related to of the Company’s internal control sys- nates and carries out an assessment of export tax credits, the Group’s tax de- tems and risk management systems the internal procedures of the different partment and external tax advisers and the drafting and filing of regulated Group companies, and the degree of regularly assess the risk arising from financial information, specifically annual documentation, updating and disclosu- tax inspections and reports, in order to accounts and quarterly financial state- re of these. determine the reasonableness of the ments, which the Board is obliged to amounts credited. submit to the markets and their super- Code of Conduct, approval, disclosu- visory bodies. re, principles and values (indicating With regards to the deterioration in the any specific reference to record kee- advertising market in Spain, the sales The effective implementation of the in- ping and financial reporting), the body and marketing departments of the bu- ternal control model is the responsibi- responsible for investigating breaches siness units and the Advertising Com- lity of the Chief Executive Officer and and proposing corrective measures and mittee conduct an ongoing analysis of Chief Financial Officer, as well as the sanctions. future trends, and the management CEOs and managing directors of the teams evaluate measures to diversify Group’s business units who are also Grupo PRISA’s Code of Conduct, ap- revenues to better adapt costs to their involved in the preparation of financial proved in the fiscal year 2011 by the expected returns. information which forms the basis for Board of Directors, establishes the ge- the preparation of the Group’s financial neral guidelines that should govern the statements. conduct of PRISA and all Group emplo- Internal control systems and yees in the performance of their duties risk management regarding the The supervision of the system for in- and their business and professional process of issuance of financial ternal control over financial reporting relationships, acting at all times in ac- reporting (ICFR) (hereinafter ICFR) is carried out by both cordance with the laws of each country the Audit Committee and the Board of and with respect for commonly recog- Mechanisms involved in the control sys- PRISA, with the support of the Internal nized ethical principles. The Code of tems and risk management regarding Audit. Conduct has been communicated to all the process of issuance of financial re- employees and is also available on the porting (ICFR). Departments and / or mechanisms res- global intranet. ponsible for : (i) the design and review of Control environment of the organization the organizational structure, (ii) defining The basic values and principles that clear lines of responsibility and autho- should guide the actions of Group em- Bodies and/or functions responsible rity, with an appropriate distribution of ployees are integrity, honesty, rigor for(i) the existence and maintenance of tasks and functions, and (iii) for ensu- and dedication in carrying out their ac- an adequate and effective ICFR, (ii) im- ring there are adequate procedures for tivities, responsibility, commitment and plementation, and (iii) monitoring. correct disclosure of the above. transparency, pluralism and respect for ideas, cultures and people, creativity One of the functions assigned to the The Director of Organization and Hu- and innovation in business develop- Board of PRISA, as set out in Article man Resources, under the Chief Exe- ment, responsible, efficient and sustai- 5.3 of the Board Regulations, is the cutive Officer, is responsible for the nable management, all of which gene- approval of control and risk manage- ongoing design, implementation, re- rate value for shareholders and for the ment policy and the periodic monitoring vision and updating of the Group’s Group. of internal information and control sys- organizational structure. The Group’s tems. Furthermore, in accordance with Business Units are supplied with an The standards of conduct in relation to the provisions of this article in the Re- adequate distribution and definition of financial reporting are aimed at guaran- gulations, PRISA’s Board must approve tasks and functions in financial areas, teeing transparency in the preparation this periodic financial information, since and have detailed job descriptions for and disclosure of financial information, this is a listed company, before ma- key roles in the financial area as well at the level of both internal communica- king it public. In this regard, the Board as clearly defined lines of responsibility tion within the Group, and externally to

70 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

shareholders, markets and regulators. accounting standards, auditing, inter- significant contingent liabilities as a Likewise, there are also performance nal control and risk management. result of the transactions associated standards aimed at ensuring that all with the account, and susceptibility to operations are clearly and accurately Over the course of the year, Group em- losses due to error or fraud. reflected in the Group’s records, state- ployees who are significantly involved ments and books. in the implementation of the system of In order to perform a full risk as- internal control over financial reporting sessment, this analysis is performed Requests, incidents and queries that (more than 200), have participated in in each Group Business Unit, as the- arise regarding the interpretation and a general course on internal control, se ultimately generate financial in- implementation of the Code of Con- which covers a specific description of formation which serves as the basis duct are dealt with by the Group’s De- the model for internal control over finan- for preparing PRISA’s consolidated partments of Human Resources, and cial reporting of the Group. Furthermo- financial statements. ultimately the General Secretary, who re, finance personnel from the business report regularly to the Corporate Go- units and Group companies receive For each of the business units con- vernance Committee on the compliance bulletins updating them on accounting sidered significant, the relevant hea- by employees with the standards. The standards, and in 2013, they completed dings and sections are identified. Ha- Corporate Governance Committee will a specific course on developments in ving identified the significant accounts publish an annual report on evaluation international accounting standards that and break-downs at the consolidated and the degree of compliance with the are due to take effect in 2014. level and in each business unit, the Code of Conduct, which shall be distri- relevant associated processes are buted among the relevant PRISA gover- identified, as well as the major types ning bodies. Risk assessment regarding of transactions within each process. financial information The objective is to document how the Complaints and concerns channel that major transactions of the significant enables communication to the audit Main features of the process for iden- processes are initiated, authorized, committee of any financial and accoun- tifying risks, including risk of error or recorded, processed and reported. ting irregularities, as well as any brea- fraud: ches of the Code of Conduct and mal- When the process covers all objecti- practice within the organization. When the process exists and is do- ves of financial reporting, (existence cumented. and occurrence, completeness, va- PRISA has a complaints channel for luation, presentation, disclosure and receiving and dealing with complaints The Group has a system for the comparability, and rights and obliga- and concerns regarding accounting, in- identification and assessment of risk tions), when it is updated and how ternal controls or other auditing matters. with regards to internal control over often. This is a confidential and anonymous financial reporting, which is formally communication channel between PRI- documented and updated at least an- For each account, there is an analy- SA employees and the Audit Commit- nually. sis of the significant accounting con- tee. Additionally, there is a confidential trols that will ensure the reliability of complaints channel available to third In the risk assessment of financial in- financial reporting, ie. that the repor- parties related to the Group. formation, PRISA applies a top-down ted transactions have taken place approach based on the Group’s most and pertain to that account (existence The complaints are channeled through significant risks. This approach starts and occurrence), that the transactions a special email address or P.O. Box and with identifying significant accounts and assets have been reported in the are received by the Chairman of the and PRISA takes into account both correct amount (valuation), that the Audit Committee, who determines the quantitative and qualitative factors. assets, liabilities and transactions of appropriate resources, methods and The quantitative evaluation is based the Group are properly broken down, procedures for the investigation of each on the materiality of the account, and classified and described (presentation complaint. is supplemented by qualitative analy- and disclosure) and that there are no sis that determines the associated assets, liabilities, or significant unre- Training courses for staff involved in risk depending on the nature of the ported transactions (completeness). the preparation and review of financial transactions, the nature of the ac- Annually, and in addition to this re- information, as well as in the evalua- count, the complexity of the accoun- view, there is also a review of controls tion of ICFR, covering at the very least ting and reporting, the likelihood of that may mitigate any such risks.

71 Sustainability Report 2014 Year in review PRISA, a global group

The existence of a procedure to iden- statements, including procedures to Policies and procedures of internal tify the scope of consolidation, taking close the accounts and for the specific control over information systems (in- into account, among other things, the review of the relevant estimates, eva- cluding, access security, change con- possible existence of complex cor- luations and projections. trol, operation thereof, business con- porate structures, or special purpose tinuity and segregation of duties) that entities. The Group makes available documenta- support the relevant processes of the tion describing the flow of activities and organization in relation to the develo- One important procedure is deter- controls related to the processes identi- pment and publication of financial in- mining the Group’s scope of con- fied as significant in each business unit formation. solidation, which is performed on a and at a corporate level. The key risks monthly basis by the Consolidation and associated controls are then identi- Controls for system processes and Department, under the Corporate Fi- fied. Documentation of control activities applications that support critical busi- nance Department, in collaboration is carried out using risk matrices and ness processes are intended to main- with the Legal Department. process controls. Using these matrices, tain the integrity of the systems and activities are classified as preventive or data and ensure their operation over When the process takes into account detective in nature, and depending on time. Information systems controls are the effects of other types of risk (ope- the coverage of associated risk, stan- fundamentally access controls, segre- rational, technological, financial, le- dard or key. gation of duties, and development or gal, reputational, environmental, etc.) modification of computer applications. to the extent they might affect the fi- In each significant business unit there The Group annually. nancial statements. is a documented procedure for dealing with closing accounting, as well as spe- analyzes and evaluates the controls Risk assessment takes into account cific processes concerning relevant fo- and procedures associated with all tho- the risk profile of each business unit, recasts and estimates, according to the se applications that support critical busi- determined by its contribution to the nature of the activities and risks asso- ness processes. consolidated financial statements, ciated with each business unit. and the evaluation of specific risks Policies and internal control procedu- including those deriving from the na- In relation to the review and approval res for overseeing the management of ture of its activities, centralization or process of financial reporting, there is a outsourced activities, as well as the ap- decentralization of operations, and tiered and phased certification process praisal, calculation or valuation of acti- risks specific to the industry or the that deals with the effectiveness of the vities commissioned from independent sector in which it operates, whenever model for internal control over financial experts, which may materially affect the these have a potential impact on the reporting. Initially, the CEOs and mana- financial statements. financial statements. ging directors of the business units and companies that are considered signi- With regards to outsourced activities, Which governing body of the entity ficant confirm, in writing, the effective- the principal service that is outsour- oversees the process. ness of defined controls for all critical ced is information technology to Indra. processes, and the reliability of financial For the monitoring of this service, the The system is monitored and over- information. Following these confirma- Group has defined a governance mo- seen, as mentioned above, by the tions, and based on the report on the del that consists of various meetings Audit Committee and, ultimately, by testing of controls performed interna- and committees, of defined periodici- the Board of Directors. lly, the CEO and the CFO certify the ty and content. Specifically, there are effectiveness of the Group’s model for weekly operational meetings covering Control activities internal control over financial reporting service and demand, for monitoring in accordance with section 404 of the and tracking incidents and requests, Procedures for reviewing and autho- Sarbanes-Oxley Act. Also, in relation to attended by the Directors of Systems rizing financial information and des- this process, as mentioned above, the- of the business units and those ma- cription of ICFR, to be published in the re are procedures enabling the gover- nagers responsible for service from securities markets, and documentation ning bodies to review and approve all Indra. Fortnightly, there is a meeting describing the flow of activities and con- financial information to be disclosed to of the Operational Service Commit- trols (including those relating to fraud the securities markets, including speci- tee, in which the heads of Group’s risk) of different types of transactions fic monitoring of significant risks by the transversal systems participate, and that may materially affect the financial Audit Committee. where applications, infrastructure and

72 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

the planning of new projects are re- financial information of the Group busi- The Group has an internal audit unit to viewed. Each month the Global Ser- ness units, supporting the financial sta- support the Audit Committee in over- vice Committee reviews the month’s tements and the notes and disclosures seeing the Group’s system of internal service, and tracks performance from included in the annual accounts. control over financial reporting. The In- the previous month. Also every month, ternal Audit reports to the Audit Commit- service level agreements are followed tee, which in turn reports to the Chief up. Monitoring performance Executive Officer. of the system The purpose of internal audit is to provi- Information and communication ICFR monitoring activities performed by de the Group management and the Au- the audit committee and internal audit dit Committee with a reasonable degree Specific function responsible for defi- with responsibility to support the com- of certainty that the internal operational ning, maintaining updated accounting mittee in its oversight of the internal control systems within the Group have policies (area or department of accoun- control system, including ICFR. Scope been correctly designed, implemented ting policies) and resolving questions of the evaluation of ICFR and the pro- and managed. or disputes regarding its interpretation, cess by which those responsible for im- maintaining fluid communication with plementing the evaluation report their To this end, the internal audit over- those responsible for operations throug- results; if the entity has an action plan sees the design and scope of the mo- hout the organization, as well as the ac- detailing any corrective measures, and del of internal control over financial counting policy manual, which is upda- whether it has considered its impact on reporting of the Group, and then per- ted and communicated to the units. financial information. forms an evaluation of the design and operation of control activities as defi- The organization has an accounting The Audit Committee’s supervision du- ned in the model. There is an annual manual based on international finan- ties with regard to the internal control evaluation of the performance of the cial standards that are applicable to system are detailed in the Board Re- Group’s general controls, the informa- the Group’s businesses, defined by gulations. They include the following tion systems controls and key control the Internal Audit Department, updated regarding the process of preparing and activities in the control system for fi- periodically and communicated to the reporting financial information: nancial information. For each of the various Business Units, annually.The- weaknesses identified, the economic re are also specific accounting policies 1. Review compliance with legal requi- impact and likelihood of occurrence developed internally by some busines- rements and the correct application is estimated, and they are classified ses of the Group that define the simpli- of generally accepted accounting accordingly. Furthermore, for all the fied accounting procedures required to principles, and report on any proposal weaknesses identified, an action plan properly reflect activity. In addition, pe- suggested by management to modify is defined to correct or mitigate the riodically, the Internal Audit issues ac- accounting principles and criteria risk, and a person is delegated for the counting bulletins that detail changes in subsequent management of the risk international accounting standards in all 2. Determine and monitor the effective- and its implementation schedule. those aspects that could have an effect ness of Company internal control sys- on Group companies. tems and risk management systems Procedures through which the auditor(in and discuss with the auditors or audit accordance with the provisions of the Mechanisms for the collection and firms any significant weaknesses in NTA), the internal audit and other ex- preparation of financial information in the internal control system that may perts, may communicate to senior ma- standard format, to be applied to and have been detected during the audit. nagement and the audit committee or used by all units of the group, and board of the organization any significant which support key financial statements 3. Oversee the preparation and presenta- weaknesses in internal control identified and notes, as well as information con- tion of regulatory financial statements. during the review process of the annual cerning ICFR. accounts or during reviews that have 4. Review Company prospectus and been entrusted to them. Action plan to PRISA has a single, unified accounts information on the quarterly and correct or mitigate any such weaknes- plan, applicable to all Group compa- half-yearly financial statements that ses observed. nies that manage financial informa- the Board is obliged to submit to the tion in the Group SAP. There is also a markets and their supervisory bo- Significant material weaknesses that are single, unified reporting format for the dies. revealed as a result of the evaluation by

73 Sustainability Report 2014 Year in review PRISA, a global group

the internal audit of the internal control The functions of this Department include: Relations with the External Auditor system for financial reporting are reported to senior management, the Audit a. The evaluation of the appropriate- The Audit Committee will liaise with the Committee and to the external auditor. ness of the internal control systems, external auditor so as to be informed on The Internal audit prepares an annual in order to improve efficiency in the questions relating to the development of report on the evaluation of the internal management and control of risks in- the audit and any other communications control system of the Group’s financial herent in the activities of the Group. required by law and technical auditing information which details, for each weak- standards. ness identified, a specific action plan or b. The revision of the accuracy and a series of mitigating controls, as well as integrity of the operational and fi- The External Auditor and the Audit Com- designating all those responsible for its nancial information of the compa- mittee will communicate on questions implementation. nies within the Group and of the that may compromise the independen- means employed to identify, eva- ce of the external auditor or any other is- Additionally, the system of internal luate, classify and communicate sues related to the Auditing of company control over financial reporting is ul- said information. accounts. The Audit Committee shall re- timately reviewed by the external au- ceive annually from the auditors written ditor, who reports to the Audit Com- c. Providing an independent opinion confirmation of their independence from mittee on any significant and material on the interpretation and applica- the entity or entities linked to it directly weaknesses and gives an opinion on tion of legal accounting codes. or indirectly, and relevant information the effectiveness of internal control on any additional services provided to ahead of the reporting of financial d. The revision of measures imple- these entities by said auditors, compa- information to the Securities and Ex- mented to safeguard assets and nies, or by persons or entities linked to change Commission. their verification. them in accordance with the provisions of Law 19/1988 of July 12, Auditing of The Audit Department designs an An- Accounts. Review by the external auditor of nual Internal Auditing Action Plan for the the ICFR information supplied to identification and evaluation of the risks The Audit Committee shall deliver an- markets. inherent in the activities of the business nually, prior to the publication of the areas of Grupo PRISA, establishing audit report, a report which will express The system of internal control over fi- priorities for Internal Audits and ensu- an opinion on the independence of au- nancial reporting is reviewed by the ring concurrence with the goals of the ditors. This report shall cover the provi- auditor of Group accounts, giving an organization. sion of any additional services referred opinion on the effectiveness of inter- to above. nal control in accordance with the Sar- The Annual Internal Auditing Action banes-Oxley Act. This report together Plan will identify all the Internal Audit The external auditor attends meetings with the financial information required actions planned for the year. The Plan of the Audit Committee to report on the by U.S. regulations shall be filed with will describe the activities and projects most relevant aspects of the work per- the Securities and Exchange Commis- to be performed, their nature and scope formed by the External Auditor. sion in accordance with the established and the resources available to the Inter- deadlines. nal Audit Department. The Audit Committee will i) propose the designation, appointment, re-election or removal of the head of the internal audit Internal audit Designation of the External service, ii) supervise the internal audit Auditor services and the annual report on the The Company has an Internal Audit De- activities of the internal audit service, iii) partment whose function is to provide The Audit Committee will propose the supervise the preparation and presen- Grupo PRISA’s management and the appointment of the external auditor.The tation of regulatory financial statements, Audit Committee with a reasonable de- Audit Committee must also approve the iv) and be cognizant of and supervise gree of certainty that the internal opera- hiring of the Company’s external auditor the effectiveness of the internal control tional control systems within the Group to perform any audit work, consultancy systems of the Company as well as all have been correctly designed, imple- or any other appropriate task within the risk management systems. It also will mented and managed. Company and Group companies. liaise with the auditors of accounts and

74 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

companies on relevant weaknesses de- irregularities or breaches in the areas tected within the internal control system of accounting, internal control, auditing during the development of the audit. and any other Group auditing controls. This channel was opened in 2011 in accordance with the Sarbanes-Oxley Act, External Auditor fees and is a confidential and anonymous channel of communication between As established in the Board of Directors PRISA employees and the Audit Com- Regulations, the Board will not propose mittee. Additionally, there is a confiden- the designation or renovation of an Au- tial complaints channel for third parties diting firm in the case that the total fees linked to the Group. charged to Company constitute more than five percent of said auditing firm’s annual income, taken as an average of the last five years.

The Board of Directors will make public the total fees paid to the Auditor by the Company, distinguishing between fees for accounts auditing and other services.

Complaints Channel

PRISA has placed at the disposal of the Group a Complaints Channel for receiving, documenting and dealing with any

75 Sustainability Report 2014 Year in review PRISA, a global group Self-regulation and ethical codes

PRISA has continued in 2013 with its reputation is a priority. Freedom of expres- This code covers conduct in any on-line commitment to a solid and professio- sion on the Internet and the strategic prio- environment, at a personal or corporate nal communications and media sector rity of enhancing the positive reputation and product level, both in personal blogs by taking an important step in self-re- of our company means that PRISA must and on social networks such as Facebook, gulation. In 2011 we adopted a Code pay attention to how its employees use Twitter, Linkedin, Tuenti, YouTube, pod- of Conduct, mandatory for all workers, social networking tools. casts, Flickr, Slideshare, etc., and so on. in which pluralism and respect for all ideas, cultures and people are descri- As in other areas, we must start with our Meanwhile, PRISA’s companies are bed as the company’s core values, with own business culture. We are content members of different national and interna- the primary objective being a respect for creators and managers, we are opinion tional professional associations and orga- human dignity. leaders who promote certain values nizations, and they participate actively in based on the defense and spread of different bodies within the sector in order This document, distributed to all emplo- democratic freedoms. This is what we to exchange information and ideas. yees of the company and available on do. We should therefore never limit the intranet and websites of all Group the use of blogs and social networks In Europe, PRISA is a member of the companies, includes an overview of the by employees, but rather, promote European Publishers Council, an im- principles, objectives and values of PRI- their use. Yet we must not lose sight of portant association of leading media SA, and the standards of behavior that common sense. organizations and which represents our employees must comply with. These are common points of view to the EU. We considered necessary and crucial to the are also affiliated to the International overall success of the Group and in order In 2011 we adopted Press Institute (IPI), WAN-IFRA (World to strengthen and enhance the Group’s a Code of Conduct, Association of Newspaper and News presence and participation in society. Publishers), OPA Europe (Online Pu- The code, which includes guiding princi- mandatory for all workers blishers Association Europe), DISTRI- ples on human rights and civil liberties, PRESS, ASIMELEC (Asociación Multi- equal opportunity and nondiscrimina- sectorial de Empresas de Tecnologías tion, environmental protection and our In order to have a clear understanding de la Información, Comunicaciones y own ethical principles, sets out a series of how to conduct ourselves in this new Electrónica), and IAB (Internet Adverti- of measures to ensure compliance and environment and to know what to do in sing Bureau), among others. demonstrates the commitment of PRISA potential crisis situations, in April 2012 to good corporate governance, transpa- PRISA’s Board of Directors approved a In the Americas, PRISA has been ins- rency and social responsibility. Code of Conduct for the Web 2.0 en- trumental in the success of the Foro vironment providing a total of ten gui- Iberoamérica, which every year brings The advent of Internet and social net- delines for the correct use of Web 2.0 together leading business people from works has radically changed society social tools, based on common sense. the media world to discuss common and our way of understanding the world. These principles will help us express problems throughout this geographical They have changed the way people our values when we make use of the and cultural area. communicate and keep informed, and Internet individually or when we do so transformed leisure and consumer ha- on behalf of the Company. PRISA also collaborates with the press bits. People no longer merely want to association, Sociedad Interamericana read; they want to write; people want to As of November 2012, this code, which de Prensa (SIP), OPA: OnLine Publis- be heard, to interact and engage in dia- was initially set of recommendations, hers Association, AIMC: Asociación de logue. And they do all of this in the Web applied to everyone who maintains a Investigación de Medios de Comunica- 2.0 environment. working relationship or partnership with ción and Medios On (Asociación de Me- the company, at all levels of the organi- dios de Comunicación en la red). The social web has also changed the zation. It is especially relevant for those way companies communicate with their directly involved in the creation and dis- In the Spanish education arena, Santilla- different publics, at a time when corporate tribution of our content. na is an active member of the National

76 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

companies and their shareholders and iv) to maintain a relationship of dialogue and cooperation with the Administration Identifico una mala práctica Canal de denuncias and, In particular, the Spanish National 1 y la denuncio Apto. de Correos 96 Securities Market Commission (CNMV). 28760 Tres Cantos Proceso [Madrid] Anónima y confidencialmente Confidencial In order to enhance transparency at PRI- de denuncias y anónimo Toyoutome SA, in 2013 we conducted several proac- Descripción del proceso de realización de denuncias, 2 tive internal communications campaigns y del tratamiento de las mismas. to remind everyone of the existence of Recepción y tratamiento: 3 Presidente del Comité de Auditoría a complaints channel, on the corporate Directora de Auditoría Interna intranet, available to all company staff. Investigación, By means of this channel, employees análisis e informe can report any irregularities or breach in 4 Group accounting, internal control, audi- Propuesta 5 y adopción de medidas ting and control systems. Reporte al Comité de Auditoría The complaints received via this channel are completely anonymous and are personally managed by our independent director, Juan Arena, Chairman of the Audit Committee of PRISA, and Virginia Fernandez, Director of the Internal Audit. Book Publishers Association, ANELE, as In Portugal, Grupo Media Capital is The steps taken following any report from well as other educational organizations a member of the Portuguese Social an employee are as follows: with common values such as quality and Media Confederation, which brings to- responsibility in teaching. gether more than 600 companies from The email that describes the com- the press, radio and TV sectors. plaint is received personally by Juan In the field of radio, SER is a member of Arena and Virginia Fernandez. This the Asociación Española de Radiodifu- correspondence is anonymous. sión Comercial (Association of the Spa- By means of Complaints nish Commercial Radio Broadcasters), Channel, employees can A thorough and confidential investi- AMPE (Asociación de Medios Publici- gation into the matter reported is ca- tarios de España), AEDEMO (Asocia- report any irregularities or rried out. ción Española de Estudios de Merca- breach in Group accounting, do), and AEA (Asociación Española de A report with the results of the inves- Anunciantes). internal control, auditing tigation is presented to the Group’s Audit Committee. This committee In the audiovisual sector, PRISA TV sets out a plan of action, in accordan- represents the Group in UTECA (TV PRISA is also a member of the Spanish ce with the Group’s management, to and Audiovisual Content Union). The issuers association, Emisores Españo- resolve the issue. Group’s newspapers and magazines les, a body with 38 members represen- are members of AEDE (Spanish News- ting over 50% of the Spanish stock mar- The Group’s commitment to ensure the paper Editors Association), ARI (Aso- ket and 60% of the Ibex 35, and whose anonymity of complaints is absolute, as ciación de Revistas de Información) and main objectives include: i) to promote we are aware that this is crucial to the the Asociación de Editores de Revistas measures to strengthen legal certainty channel’s success. Culturales de España (ARCE). All the in all matters relating to the issuance of Group’s media in Spain are signed up listed securities and to participate in the to the Association for Self-regulation in development a better legal framework Commercial Media (Autocontrol) and, in at both a national and European level, the area of intellectual property rights, ii) to contribute to the development of to CEDRO (Centro Español de Dere- high standards of corporate governance, chos Reprográficos). iii) to promote communication between

77 Sustainability Report 2014 Year in review PRISA, a global group

78 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Commitments and 3 future challenges

79 Sustainability Report 2014 3 Commitments and future challenges

A commitment to quality news and information, education and entertainment is in PRISA’s DNA. A commitment to our stakeholders, internal and external, has always been at the very core of all PRISA’s operations. From the very beginning, PRISA has championed innovation and rigor as the best ways to guarantee improvement of service to our customers across all its products. This commitment remains our priority and is our most valuable asset. The main challenge for the future is to continue working to maintain our exacting standards. Commitments and future challenges Sustainability at PRISA

Globalization and the free market eco- anti-corruption, as promoted by the UN. nomy have fostered the development In 2010, 2011 and 2012, the Spanish of an extreme consumer culture that Network for the UN Global Compact often relegates to the sidelines the true congratulated PRISA for its Progress value of institutions, knowledge and re- Report, lauding the quality of the infor- flection. Companies involved in cultu- mation reported, the organization of the re and education such as PRISA now document, and the initiatives carried out face the greatest challenge of their his- by the company and its business units tory to bear the daily burden of respon- to integrate CSR into the Group’s ma- sibility in the exercise of quality journa- nagement. lism and education, both crucial to the construction of the critical and infor- In May 2013, the Group has gone from med public opinion that is required by being mere signatories of the Compact future citizens. PRISA, therefore, has to being full members of the Spanish to take on the added challenge posed Network for the UN Global Compact, by the environment in which it operates thereby strengthening its commitment by embracing the necessary transfor- to the Ten Principles. This means that mation of its business model -a model the Group now works more directly with that places the user at the center- while the organization of the Global Compact holding on to the basic values and prin- and has set itself the challenge of identi- PRISA has the added ciples of its identity as a factor that sets fying and promoting best practice in the challenge of transforming us apart. media and education sectors to promote sustainability. Also in 2013, we have its business model while maintained our commitment to impro- maintaining its values A recognized commitment ving the reporting of nonfinancial infor- and principles as a to facing ongoing mation and, as a result, we obtained the challenges GC Advanced level for our latest annual differentiator report. PRISA’s commitment to sustainability has been recognized by investors since 2008, when the international index Project for the revision and for corporate social responsibility and improvement of the CSR sustainability, the FTSE4Good, was es- report tablished. FTSE4Good is a package of indices aimed at measuring the efforts Meanwhile, we have initiated the cru- of 30 Spanish companies to meet glo- cial process of thoroughly improving bally recognized standards, and PRISA our Social Responsibility report in four has been included on the index since ambitious phases that will allow us to the very beginning in recognition of its adapt to the new G4 version of the good practices. In June 2014, PRISA GRI (Global Reporting Initiative) on once again received the index certifica- time. During 2013 we have carried out tion for maintaining the required stan- a thorough analysis of our reporting dards on corporate social responsibility, and benchmarking. Fruit of this labor human rights, labor, environment and may already be seen in this Sustaina- anti-corruption bility Report, as the first phase of improving the structure of the report has PRISA has also been signed up to the already been carried out. Thus, the United Nations Global Compact sin- information reported that was relevant ce 2008. The company thus signaled to GRI G3.1, which had not been ad- its commitment to aligning its opera- dressed properly, has now been dealt tions and strategies with ten universa- with correctly. This is an important lly accepted principles in the areas of step towards the demanding level that human rights, labor, environment and we have set for 2015 and 2016, and

81 Sustainability Report 2014 PanoramaYear in reviewde un año PRISA, a global group

whose progress we will examine in this New Sustainability Policy in the educational publishing sector in section of the report each year. and Action Plan 2013-2015 Spain and Latin America.

PRISA continues to make progress in Santillana, through its digital opera- Toyoutome Project sustainability. In 2013 we redefined the tions, is investigating new forms and Global Sustainability Policy with the firm methodologies for education with the The most prominent initiative since objective of creating value for PRISA goal of providing the educational mate- 2011 has been the project Toyoutome, and its stakeholder groups, by cham- rials and management tools required by the framework concept encompassing pioning sustainability in the Spanish and today’s schools. a number of internal communication Portuguese-language media and edu- initiatives to integrate all business cation sectors, and by striving to to get In Spain, the main goal for 2014 is to units, thus fostering entrepreneurial this message across to society at large. face the new challenges arising from the culture and a sense of belonging. This The strategy is based on the mission, implementation of the new Education is a new, far-reaching initiative that vision and values of PRISA, with these Law, which is to be implemented over completely changes the way people seen as differential factors. The strategy the course of 2014-2015 for Primary work at PRISA. A concept that involves enjoys the full support of Corporate Go- and Basic Vocational Training (FP). The the design of a new, connected organi- vernance , Senior Management and the company has launched a new, highly in- zation and one that is able to foster the Communications Department, who are novative educational project, Saber Ha- professional development of all emplo- acting as catalysts for transformation cer, that includes specific materials for yees and teams. among the business units and Group emerging teaching methodologies and companies. a whole new range of digital products Since May 2013 we are that are adapted to the new realities of With a totally transversal and integra- the classroom. members of the Spanish ted approach, there are three axes that Global Compact Network drive PRISA Sustainability: the creation In Latin America, the challenge is to and distribution of content; responsible consolidate the Sistema UNO learning for we strengthen our management; and social and cultural system, and to bolster the Santillana commitment to the Ten action. All these come under the umbre- Compartir initiative in all those countries Principles lla of proactive communication through where it already operates, as well as to different channels that foster transpa- extend its implementation to markets rency and dialogue. But any such poli- in Chile, Ecuador, Peru, the Domini- cy would be useless without a specific can Republic and the Central American The first phase, completed in 2011 con- timetable for action. We have therefore area. sisted of the launch of the new global defined the action plan for 2013/2015 communication platform, incorporating that will be developed with the utmost Santillana will continue to work to make a corporate intranet for all business care and attention. Of the six proposed available the largest possible reposi- units and Group companies and accom- plans, the first three are already being tory of content and to provide this with modating all existing internal collabora- developed, notably the Observatory on a powerful search tool that will allow tive spaces on a single channel where Responsible Action, which is already users to discover, recover, rethink and the company has been developing all the catalyst and driving force behind all reuse the content currently made avai- the tools required for the Transforma- our activities both inside and outside the lable by the company. The company tion Plan (training, professional deve- Company. Secondly, PRISA Debates, will continue investigating the development , leadership and knowledge). which aims to promote thorough and lopment of methodologies, platforms, Over the course of 2012, we improved ongoing reflection on the future of jour- formats and services that can be suc- the performance and overall functiona- nalism and quality education. cessfully implemented in schools and lity of Toyoutome, and in 2013 all the among families. tools have begun to mature in terms of the levels of traffic and usage habits, Santillana thus consolidating the transformation PRISA Ediciones project as a reality that is allowing us to The primary objective of the publishing improve day by day as a company. For group in each of its campaigns, year af- Although 2014 is not going to be an 2014 we plan to continue consolidating ter year, is to maintain quality standards easy year for Spain, there are indica- all these developments. and leadership, and to foster innovation tions pointing to a slight improvement

82 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

SUSTAINABILITY AT PRISA SUSTAINABILITY AT PRISA

Create sustainable value for the Group and its stakeholders, championing sustainability in the areas of media and Action Plans 2013 / 2015 education in Spanish and Portuguese, and to pass this value on to society at large (reputation). OBJECTIVE

Environmental A strategy must be translated into concrete action if it is to be an effective strategy. The definition and implementation of action plans is the most dynamic phase in our CSR program.

Mission: To contribute to Vision: To be the the cultural development of global brand of Action plans will be developed in individual documents, which will indicate the planning, people and the progress of Economic reference in culture and organization, management areas and control. society by offering goods and education in Spanish services that will generate Stakeholders and Portuguese. rewarding experiences These plans are as follows: and emotions in education, news and information, and entertainment. PRIJECT AREA STAKEHOLDERS DEFINITION

Creation and Open competition for Differentiation Mi Idea Social distribution of External social and cultural STRATEGY Levers Responsable Values: People, content innovation. pluralism, innovation, rigor, Corporate governance, transparency, independence, Awareness Project to dedication, connectivity, senior management and practice the 3 Rs : self-critical, security. communications departments. Responsible Zero waste Internal / external - Reduce. management - Reuse. - Recycle.

transversal and integrated APPROACH Office/ CSR Coordination Unit observatory for Responsible Internal aimed at promoting our Responsible management sustainability. Creation and distribution of Action content Responsible management social and cultural initiatives Internal and external • TV • Respect for the law • Human Rights and communications project • Radio Millennium Development Proactive • Human resources TyD channel Internal / external to foster transparency • News • Environmental security Goals communication • Publishing • Communication • Sponsorship, patronage and dialogue regarding

AXES • Education • Innovation and alliances our CSR. • Change • Social initiatives • Administration and Finance • Promotion of debate PRISA Social and Lead the debate on External • Commercial and sales • Promotion of culture, the Cultural action education and media. arts and journalism Debates • Shopping • Corporate Volunteering • ICT PRISA Social and Corporate volunteer Internal Volunteers Cultural action program. Channels of transparency and dialogue Proactive Communications CSR Reports

Action Plans

Analytics

in the economy that may boost consu- PRISA Noticias El País aims to become the leading mer spending. Fortunately, geographic provider of quality news in Spanish and diversification, together with a catalog During 2013, PRISA Noticias has con- Portuguese, in both Ibero-America and of prestigious worldwide and national tinued its strategic focus on innovation in the world. It aims to build a two-way authors, arms the company with a cru- and attention to new trends in journa- bridge for Ibero-American culture and, cial weapon to offset the weakness of lism. It is now committed to working on at the same time, share the philosophy our domestic market. digital expansion, technological innova- of change, modernization and progress tion and the generation of high-quality that the newspaper brings to all those For the publisher, robust consumer content for the growing mobile-devices societies that it addresses. demand in Latin American markets re- market. mains key, and the company needs to Sports paper As will continue to nurture continue delivering an outstanding and In 2013, with the launch of its on-line its ever-growing community of readers affordable catalog, in both print and di- edition in Brazil, El País undertook and has taken yet another step forward gital formats. The editorial team needs what is probably its most ambitious with the restructuring of its main con- to be supported as they seek out, dis- professional and entrepreneurial ven- tent, the successful launch of ¡NoticiAs! cover and deliver new talent and works ture since the newspaper was foun- (an app that delivers instant updates di- that can then be offered to readers. And ded 37 years ago. The newspaper rectly to computer desktops), exclusive the company must continue to work with thus fulfilled its global vocation with mobile content and information servi- the entire industry to combat the rava- the launch of a digital edition in Por- ces, all of which offer unrivaled services ges of piracy. tuguese. to users. The paper has recently laun-

83 Sustainability Report 2014 Year in review PRISA, a global group

ched As Club Deportivo, a social plat- El País aims to become of radio, including the revitalization of form to support Spanish amateur sport content and formats, the reinvention and endorsed by the Sports Council the leading supplier of of radio’s narrative language and the and the Spanish Olympic Committee. quality news in Spanish reformulation of opinion spaces. The and Portuguese, in South leading radio group’s structural and strategic goal for 2014 is to continue PRISA Radio America and in the world apace with this transformation.

The rapid, unstoppable digital trans- The company is also busy working on formation of PRISA continues apa- a new website which aims to connect ce, and nowhere is this more evident the areas of greatest potential: audio all the latest innovations with traditio- than at the heart of the company: in and visual. The future of radio is on nal radio, by introducing a bidirectio- its newsrooms. This transformation mobile devices, which allow users to nality between the analog world and favors the creation of more attractive create personalized stations. This abi- the on-line world, that is not currently and higher quality digital products, lity to adapt means radio always co- being exploited. This is an ambitious and gives PRISA Radio the edge in mes across as fresh and new. project, scheduled for launch in Octo- all those markets in which it operates ber 2014, and that will transform the -- and where the company can best The company has launched a system company into a powerful social net- exploit its digital and mobile assets in for the modernization and innovation working node via its contents.

84 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Radio has to be out there on the street, leader in the commercial television getting more people to register. It has sector and has expanded distribution to adopt a more rational way of dea- to include Spain and the United Sta- ling with information, and offer greater tes with the aim of bringing its content interaction. It has to adapt to new di- to Portuguese-speaking communities gital consumer habits . Radio has to worldwide. become the soundtrack for the world of social networking. A range of mo- The digital transformation sweeping bile apps are to be launched that will across PRISA TV has driven the de- allow users to record, edit and send velopment of second screen applica- audio, video and images to the radio tions, the development of adaptive network, which can be used on air and web apps for greater participation and on-line, creating a truly mobile social the use of gamification and transme- community. dia content.

Similarly, other parallel lines of action have been opened up with forums, conferences and technical seminars, all of which provide new revenue streams and strengthen the brand.

PRISA TV

PRISA TV will continue to pursue new developments in all environments, as well as develop new content using cutting-edge technology. These commitments have already positioned the company as a leader in the audiovisual entertainment sector

The objectives for 2014 are focused on continuing to work and exploring new lines of business development, that add value to content, allow the application of advanced technology, enable the optimization of interactive services and place the user at the center of all operations.

This year CANAL+ has signed important agreements to expand its audiovisual content and its multichannel offer, and it has committed itself to the development and implementation of new technology applications that will enhance the user experience of subscribers. The company has also rolled out YOMVI to include new devices and has expanded its distribution. In Portugal, TVI celebrated its 20th anniversary. It remains undisputed

85 Sustainability Report 2014 Year in review PRISA, a global group

86 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Sustainability 4 at PRISA

Dialogue and communication with stakeholders Our sustainability strategy

87 Sustainability Report 2014 Year in review PRISA, a global group

4 Sustainability at PRISA

At PRISA we believe that our very business operations play a significant social role in the development of a democratic and sustainable society. That’s why the company has always focused on developing the best possible teams of professionals and on championing quality and credibility across all our products within the same ethical framework under which El País was founded: that is to say, solidarity, transparency, independence and the protection of the environment.

88 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

As a media and education group, we the very heart of our operations: con- take our responsibilities seriously, not tent. Secondly, through responsible ma- merely in how we manage our busines- nagement. And finally, by broadening ses but also through our products and the scope of our operations to include content-through which we strive to rai- a wide range of social and cultural ini- se awareness and educate and inform tiatives that foster debate on the future the public of the issues facing society. of the sectors in which we are active Through our content and and that give a voice to minorities in activities aim to raise We believe that our relationships with defense of human rights and the envi- our employees, shareholders, users, ronment. awareness and spread customers and suppliers are key to our knowledge and report mission to act responsibly. That’s why on issues of interest and our sustainability policy is developed daily through dialogue with all these concern to society groups. Firstly, by means of what is at

89 Sustainability Report 2014 Year in review PRISA, a global group Dialogue and communication with stakeholders

As a media group, PRISA strives to set the standard when it comes to its commitments and social responsibilities to its shareholders, investors, employees, clients and customers, suppliers, the social milieu, institutions and society at large. To this end, each company within the Group possesses its own mechanisms for communicating with its stakeholders and interest groups, whereby the companies remain informed of their concerns and needs and are thus equipped to respond appropriately.

PRISA assumes its role as leader in social responsibility towards its shareholders, investors, employees, customers and suppliers Committee, and the Appointments and calls and written communication that Remuneration Committee. Information provide answers to queries about the about Shareholders’ Meetings as well as Company and its businesses. Shareholders and investors the Corporate Governance Reports issued by the Company are also available The main channels of communication on-line. Conference Call on results with shareholders and investors are: At least once a quarter, and following Investor Relations Mailbox: the filing of the financial results of the Corporate website Company with the CNMV, the CEO and A mailbox enabling direct communi- Chief Financial Officer (CFO), as well as The corporate website includes a special cation with the Investor Relations De- the Investor Relations Department, lead section for shareholders and investors. partment ([email protected]) to which sha- a conference call in which they explain This section provides Company financial reholders and investors can write. in detail the financial results and are information and presentations to analysts, available to respond to any questions indicating the share performance and pay- investors might have. ment of dividends. Furthermore, the websi- Investor Relations Department te contains all information submitted to the CNMV and the SEC, information on Cor- The Investor Relations Department Meetings with shareholders and porate statutory norms and regulations, in- maintains ongoing and transparent investors formation about the Board of Directors, the communication with investors (current Executive Delegate Committee, the Audit and potential) and financial analysts PRISA attends various types of mee- Committee, the Corporate Governance covering the company, through phone tings with shareholders and institutional

90 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

investors, organized by national and international business banks: a. Roadshows in a number of financial centers worldwide. b. Conferences. c. Occasional breakfast and group meetings.

Shareholders meeting

The Annual General Meeting takes place once a year and allows the Exe- cutive Chairman of the Company and its CEO to explain the annual financial results and to review the business situation and market challenges facing the Group. The participation of shareholders at the general meeting is described in paragraph 8. with employees from other companies Another very important channel of Additionally, and in specific cases, PRI- across the Group. At the PRISA corpo- communication with employees is the SA organizes Extraordinary General rate center we provide all necessary PRISA newsletter, a global project that Meetings to deal with specific matters tools and resources to those managing summarizes the most relevant monthly that require the approval of the share- the different intranet systems to enable news from all business units. It also holders of the Company. them to work in a coordinated fashion includes interesting information on the and to share relevant experiences and latest news on tools made available on Although there are numerous calls that best practice. There exists, therefore, the intranet: PRISA Jobs, Campus and take place every week between inves- from the departments of Communication PRISA Club. tors, shareholders and financial analysts in collaboration with Human Resources, and the Investor Relations Department, IT, Security, Purchases and Prevention, This newsletter, in addition to offering which are not detailed below, all major an internal participative network that we news updates, also showcases the most meetings and conference calls that took all keep alive every day. interesting projects of the different units. place in 2013 both in Spain and abroad It also has a space reserved for socially are as follows. PRISA maintains very open and fluid responsible initiatives in response to the communication with its employees thanks strategic importance of this area for the Conference call on results: 4 to the consolidation of Toyoutome as glo- Company. Individual conference calls: 65 bal intranet. This platform forms the basis Individual Face-to-Face Meeting: 94 for all internal communication initiatives Meanwhile, every week all departments Group Face-to-Face Meeting: 12 that are implemented by the communica- involved (Transformation, Technology, Roundtable: 1 tions units of all business units. Communication, HR) receive a report Presentations 1 on audience and usage figures for To- Toyoutome has become the main in- youtome (blog, tweet and intranet), with formation channel for employees to data on visits, traffic and tools used by Employees channel all the news flows and initiati- employees. ves that are generated by the various All of our employees have access to an units of the Company. In 2013, all the Toyoutome has also served as a plat- internal channel for communication and most important Group news, events and form for the Complaints Channel, yet collaboration (intranet Toyoutome) pro- milestones have had an immediate im- another example of the Company’s viding all the necessary information that pact at an internal level, and employees ongoing commitment to transparency might be required. Users may participa- have been duly informed of all relevant in work processes. By means of this te and interact with their colleagues or issues affecting their businesses. complaints channel, employees can

91 Sustainability Report 2014 Year in review PRISA, a global group

Ejemplo de pie de foto para las imágenes del Informe Anual 2014

report on any irregularities or breaches advertisers and media agencies as e- mail, telephone, meetings, confe- in accounting, internal control, auditing to exchange information. rences, courses, visits to factories and or other controls of the Group. facilities, etc. b. The day-to-day activity of the sales Although the main channel of commu- network and teams through their Civil society, institutions and the gene- nication with employees is through the visits and communications with ad- ral public have a permanent channel Toyoutome intranet and via monthly vertisers and their representatives. of communication with PRISA at their newsletters, internal communications disposal through the corporate web are also sent via email. page www.prisa.com, which is perma- Suppliers nently managed and administered by the Group’s Corporate Communica- Clients The main channel of communication tions and Marketing department. This with suppliers is through the PRISA cor- department gathers all requests for There are three channels of communi- porate website: http://www.prisa.com/ information that come to PRISA and cation with external clients (advertisers es/pagina/area-de-proveedores/ then attends to them directly or passes and agencies): them on to the relevant Group com- All potential suppliers interested in be- pany, depending on the subject matter. a. Corporate and research communi- coming certified as PRISA suppliers The same corporate department also cations: must apply via the Suppliers Area on represents the Group in many institu- the corporate website. This section tions and forums related to the develo- Through the website PRISA manages Group-supplier relations, all pment of the business. BRAND SOLUTION. aspects of the process, including po- A monthly newsletter to all tential supplier registration, applica- clients detailing all of the rele- tion, the certification and authorization Our companies’ initiatives vant company news. of all our suppliers worldwide as well Occasional updates on useful as ongoing follow-up and periodic as- market information, about con- sessment. Santillana tent, new programs, specials, etc. In addition, the purchasing department Santillana’s commitment to digital ope- Planned communications: these also maintains communication with rations has prompted a technological are regular meetings with key suppliers through other means such transformation within the company, a

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transformation that puts the customer and subsequent reader recommenda- The Internet has proven to be the best at the center of all activity (whether tions serve to reinforce the amplifier possible insight into the market. Publis- reader, teacher or student) via a multi- effect. hers can see the results of real sales channel and multi-platform strategy. if the title has been self-published and Social networks (especially Facebook, The company’s most successful opera- thus calculate the print run by taking in- Twitter, Linkedin and YouTube) allow tions are those that have used reverse to account the number of followers an the company to improve communica- marketing. That is to say, the company author has for their blog or on social tion with the school community far be- has anticipated the market by producing networks. yond what is permitted by traditional content that a certain group of readers media. Over the past year, the com- demanded. The best way to remain a major player pany has worked to integrate traditio- in this new, emerging value chain in nal communication strategies and new A case in point is the series of cook- the publishing sector is to provide real strategies for multichannel and multi- books by famous food bloggers, such value to readers. The company offers media communication (demonstration as Sandra Mangas, author of the blog a unique reading experience, not just videos, promotional videos, testimo- La Receta de la Felicidad (Recipe for a mere product. In this sense, PRISA nials, QR codes, etc.). Happiness), from whom the company Ediciones has pioneered the creation of commissioned a book after tracking her illustrated content in advanced formats Education blog and social media profiles over the that are particularly suitable for digitiza- course of several months. Three wee- tion such as illustrated cooking, travel or The company endeavors to maximize ks before publication, Sandra’s book children’s titles. the possibilities offered by communica- was already the best-selling title on tion channels to better interact with cus- Amazon. It now has more than 75,000 PRISA Noticias tomers. Facebook fans, more than 7,500 followers on Twitter and 40,000 on Goo- PRISA Noticias’ media maintain a close Santillana manages an on-line com- gle +, and she is already preparing her relationship with their readers. The pre- munity with more than 70,000 teachers second book. sence of its titles in social networks has through E-vocación, which provides a been key to maintaining a dialogue with wide range of educational materials The blog Webos Fritos won the blog all those users who choose the group’s and other high value-added services award, Premio Bitácoras 2010, for media, and readers can now participa- such as on-line learning, interactivity, Best Food Blog, as well as the Gas- te actively in the news and share their discounts in the entertainment sector, troblogs Award 2011. After examining own views. Data on Twitter followers etc. the blog’s content, the company deci- reflects this direct contact and dialogue ded to commission two books. These between readers and the company’s In addition, the company continues currently boast over 27,000 followers media outlets: El País (3.12 million), to move forward with the open plat- on Facebook and nearly 20,000 on As (850,000), Cinco Días (109,000), El form IneveryCrea as a community of Twitter. Huffington Post (163,000), Rolling Sto- education professionals, not only as ne (90,500) and Cinemanía (81,000). a standalone service (in the case of The authors and publisher have wor- Those are the numbers for followers of Spain) but also as a service speciali- ked hand in hand at all times, sending just some of the company’s media. All zed in the Sistema UNO and Compar- out the same messages and employing of these users receive directly all publis- tir systems. the same graphic design at all times, hed information and all of them have the without sacrificing the spirit of the origi- chance to interact. PRISA Ediciones nal. The company has got the message out via all available channels at once The Readers’ Editor is responsible for With the traditional value chain, the -the publishing label’s website, blog and dealing with reader complaints, con- reader was typically the very last link, author’s website, social media profiles, cerns and suggestions regarding the coming after the author, agent, publis- etc.- allowing the authors to be first content of the newspaper. The Readers’ her, distributor and point of sale. In the with the news: announcement of a new Editor monitors and acts as guarantor era of Internet and new technologies, book, updates to digital book reprints, of compliance with ethical rules, and the readers now actively exert influence contests and prize draws, etc.. This gets rules of conduct and professional proce- throughout the entire process: defining the reader in on the act and means that dures as set out in the Style Book and content, price and promotion. In addi- the results of the promotion are expo- acts accordingly in cases of non-com- tion, a satisfactory reader experience nential. pliance. The Readers’ Editor also acts

93 Sustainability Report 2014 Year in review PRISA, a global group

as mediator between readers and the (Talent search), in which readers are radio’s social impact after all, the medium newsroom. The existence of this figure invited to send in samples of their own of radio has always been the the social demonstrates the firm commitment of creative endeavors in any discipline medium par excellence. Here, audien- the company and its journalists to dili- they choose. A selection of the best ce participation is essential, and the gently carry out their stated duties and contributions are subsequently publis- company has opened up new chan- is a clear, necessary and vital statement hed in the Culture section. In 2013 -the nels of communication to make com- of transparency, as journalism comes second year of this initiative- more than munication more fluid and to enable under increasing suspicion. 2,000 such submissions were received, the company to join the global con- from which 45 talents were singled out. versation and thereby reach out to The most common subjects readers’ users who might not otherwise con- letters are: the moderation of the news- The company also periodically organi- sider themselves regular radio liste- paper’s forums, factual and grammati- zes digital interviews with leading public ners. Interactivity. It is the only way to cal mistakes and errors, and the news figures, allowing readers to submit their communicate with people at a perso- treatment of images. Another frequent own questions. nal and emotional level. It is two-way subject is the publication of photographs street that sees traffic flow in both di- that some readers find offensive. In 2013 we took rections. With regards to how and when the is- an important step to Social networks are deeply embedded sues are addressed, there is no fixed regulate and ensure basic in everyday reporting and in the com- timeframe, although in general these munication teams. Spoken-word pro- issues are either dealt with every two standards for comments grams, be they conventionally broad- weeks in the print edition or on the blog, posted by readers cast on the airwaves or via the web or depending on the urgency or the na- mobile networks, come into their own ture of the issue raised. The nature of on-line. Both news teams and pro- the digital edition, with its own content, grams alike use the internet as a sou- means that the Readers’ Editor does not All titles organize a wide range of public rce of information, as a means to ge- always necessarily respond to incidents events, to which readers are invited. The nerate excitement over content, and to with a published article, but instead pas- company thus links its brands to culture allow content to go viral. All this is com- ses the reader’s alert on to the news- and invites the reader to participate in a plemented by interactive on-line tools room to be appropriately addressed. dialogue with the media. Moreover, jour- and official links to both the programs nalists are encouraged to participate in di- and the presenters, through their social El País, besides providing users with the fferent initiatives out there in the real world. media accounts on Twitter and Face- figure of the Readers’ Editor ombudsman book, Google + and Tuenti. and the Letters to the Editor section, took Teachers and students participating in the a significant step in 2013 to regulate and program El País de los Estudiantes recei- The Communications and Marketing ensure basic standards for comments ve regular communications from the news- departments use social media to launch posted by readers. The main change paper informing them of the program con- and amplify institutional brand messa- has involved singling out a group of ac- tent and instructing and encouraging them ges and to measure user response to tive users, whose comments consistently throughout the process. Also included are these messages. Other parallel chan- maintain standards of politeness, correc- materials for schools, incentives, gifts, con- nels include the PRISA Radio commu- tion and high-mindedness. That is to say, tests, digital interviews and regular emails. nication platform as the main tool of the noise generated by insults and futile Internal Communication. This platform debates and useless content has been El País maintains a permanent open- provides news and information on de- reduced and encouragement has been door policy and organizes guided tours partmental projects, professional achie- given to all those showing respect for of its facilities, primarily visited by schools vements and presents the human face views that may be contrary to their own and colleges. During 2013, the newspa- of the organization, thereby improving and to those who are willing to generate per received 7,500 such visitors. collective knowledge. The Media Room debate with ideas and arguments that are 2.0, aimed at media professionals, aims formulated and expressed appropriately. to amplify news of our initiatives, distri- PRISA Radio bute information, and practice a more All PRISA Noticias’ media outlets pro- open and participatory journalism, in an mote participation through collaborati- PRISA Radio’s digital products maintain environment that integrates social web ve initiatives such as Se busca talento an ongoing commitment to maximize tools.

94 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

PRISA TV questions and receive comments, these being just a few examples of dynamic, The channels of communication that daily content that targets specific au- PRISA TV maintains with customers diences under the umbrella of CANAL+ and consumers are wide and varied. and YOMVI. Furthermore, the creation Through the company’s digital, interac- of new apps and new formats for inte- tive and multi-device magazine (www. raction allows subscribers to feel part of plus.es/revista), users can find all the CANAL+ content, and represents a ma- information they need on CANAL+ chan- jor advance in both the way in which the nels and content, plus promotional vi- user can interact with the brand, as well deos, recommendations, opportunities as the best way to foster an association for participation, etc.. In addition, through that links technology to the brand in the the company websites, www.prisatv.com new digital environment. and www.canalplus.es, as well as via on- screen interactive services, the company The relationship with the media and keeps a window open for information other institutions is channeled through about all Company activities, content the Communications Department, wor- and coming attractions. king closely with the various divisions of the company and with other areas of Canal+ also has a strong presence the different business units. Social net- in social networks. It maintains corpo- works depend directly on the Commu- rate profiles and profiles of journalists, nications Department. This means the who have a very active on-line presen- integration is total, with social media ce and who maintain an ongoing con- considered a further means by which versation with the audience. This way, to exercise corporate communication the company is better able to perso- and content strategy. During 2013, new nally customize the Canal+ viewing accounts and individuals have joined experience and provide greater value social media. to the brand.

Meanwhile, through specific PRISA TV social media accounts, the company is able to offer contests, surveys, answer

95 Sustainability Report 2014 Year in review PRISA, a global group

PRISA’s followers on the social network

Media Facebook Twitter Tuenti Total

40 Principales 4,363,332 2,935,176 73,886 7,372,394

Media Capital 5,666,298 93,209 - 5,759,507

El País 698,010 4,562,721 2,419 5,263,150

As 540,450 3,726,342 31,318 4,298,110

Cadena Ser 684,381 1,890,635 112 2,575,128

CANAL+ 365,392 2,872,249 25,256 3,262,897

Santillana 639,925 906,333 - 1,546,258

Máxima FM 489,986 96,424 82,646 669,056

Cadena Dial 521,241 50,242 1,532 573,015

Cinco Días 30,708 189,543 - 220,251

M80 151,854 25,895 323 178,072

Cinemanía 105,617 77,239 392 183,248

Rolling Stone 60,172 89,323 935 150,430

Meristation 72,016 76,054 2,958 151,028

Smoda 114,296 - - 114,296

Radiolé 73,216 30,592 25 103,833

El Viajero 24,224 53,937 - 78,161

Planeo 83,491 8,274 - 91,765

Clasificados 9,900 24,414 - 34,314

PRISA 6,080 12,946 - 19,026

Planet Events 9,133 3,358 - 12,491

Resto 1,561,727 3,334,266 - 4,895,993

Total 16,271,449 21,059,172 221,802 37,552,423

96 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA Our sustainability strategy

Creation and distribution of As the world’s largest educational pu- Responsible management content blishing group in Spanish and Portu- guese, PRISA, through the publishing The chief social responsibility of any brand Santillana, plays its role of lea- Responsible management of our media group is to defend and practice dership responsibly. We believe that professionals honestly and vigorously the right to in- education is a vital tool for the social, formation and freedom of expression. political and economic development of Providing guarantees to our stakehol- In this way we contribute to the growth the societies in which we operate. ders with respect to our duties and obli- and development of a democratic socie- gations as a business is crucial to our ty everywhere we operate, and where As well as our commitment to quality, responsibility as an organization. PRISA media outlets are clear leaders. innovation and service, we have con- With a view to guaranteeing the fulfill- tributed over the decades to improving PRISA would never reach its busi- ment of these duties and the exercise educational practice and have facilita- ness objectives without the efforts and of these rights, El País was a pioneer ted public debate on the future of the dedication of our professionals, who from the very outset in Spain in adopting education systems in Spain and the together make up a diverse and multi- a series of professional and ethical fra- Americas. disciplinary team, all sharing common meworks such as the Editorial Codes, goals. Working at PRISA means joining Style Book and Readers’ Editor, which PRISA is also deeply committed to pro- a team of professionals in an environ- have been subsequently embraced by moting Spanish language and culture ment that favors innovation, creativity all the businesses across the group. worldwide. and teamwork. Through integrated and effective management of people, we These ethical standards have fostered Every day, more than 60 million people foster both the personal and professio- the growth of a business culture that is in Europe and Latin America choose our nal development of all our employees. rigorous, critical and of high quality and TV channels, read our books, and tune that has set the standard in Spain and in in to our radio stations for leisure and A great team of professionals the Americas. In the audiovisual sector, entertainment. All too aware of the in- PRISA’s companies have signed up to fluence that our content might have on The Corporate Human Resources De- a number of codes that guarantee the children, teenagers and adults, PRISA partment coordinates all policies ai- quality of their news services. These in- has set itself certain criteria governing med at encouraging our professionals clude a Code for self-regulation of tele- integrity, quality and adaptation of con- to develop a greater engagement with vision content for children. tent. We have shown that raising aware- our brands and products, because only ness of social and environmental issues through such professional engagement Our credibility and prestige are among can go hand-in-hand with entertain- can we hope to meet the Group’s li- our greatest assets but this is not the ment, through programs that educate felong commitment to society. In this only reason why every day millions of and inform, while also providing enter- regard, the Human Resources De- people read, watch, tune in, or log on tainment at the same time. partment reiterates its obligation to re- to our services in search of information main an employer of reference, offering and news. Since the very outset, PRI- All our media outlets are signed up to its employees the appropriate condi- SA has played the role of responsible a code for self-regulation of televisual tions to carry out their work with security opinion leader and watchdog, working content for children. and independence. The depth of the cri- in defense of pluralist democracy, crea- sis is having a particularly negative im- ting awareness around the issues that The group also supports an agreement pact on this sector and unfortunately affect us. Our media have spoken loudly on self-regulation of television adver- the group has been forced to conti- and eloquently – either through special tising. Meanwhile, our music stations nue taking measures to reduce costs, coverage or by providing free adverti- avoid subjects that might prove offensi- including workforce and organizational sing spaces for NGOs – on a number ve to listeners or be discriminatory, par- adjustments. In a renewed commitment of campaigns and in defense of human ticularly during time slots when children to all stakeholders, the Group has de- rights. might be listening. clared its intentions to carry out these

97 Sustainability Report 2014 Year in review PRISA, a global group

adjustments with the minimum possible The number of people on staff who have out responsibly and with a firm com- impact on employment. participated in corporate volunteer pro- mitment to reaching agreements with grams during 2013 was 62 in Spain and the Legal Representation of Workers. The very nature of the services provided 52 in Latin America. We also applied compensation plans by PRISA to society in the fields of news that were a significant improvement and information, communication, and From an internal perspective, in 2013 over those legally established for these education and entertainment, means the Group promoted the further develo- situations. Noteworthy measures inclu- that the Company is closely bound to pment of plans and measures aimed at ded reaching agreements on Outplace- the social milieu in which it operates. creating a better work/life balance, that ment services to ease the transition of This link will only develop its full poten- were first implemented in 2012. employees to new jobs and on financial tial if we have professionals who share assistance to help them attend occupa- these same principles, as fortunately is Measures taken in response to the tional training courses. undoubtedly the case. economic situation In 2013, and in order to maintain em- Within the group, we run a range of All adopted measures have been taken ployment and to avoid further staff cuts, collaborative initiatives with educatio- using the appropriate channels of ne- a range of alternative measures have nal institutions to raise awareness and gotiation and with a view to reaching been implemented in many companies involve students in business organiza- agreements with the Legal Represen- after negotiations with workers, such as tion (internships for Universities and tation of Workers. The Group maintains wage cuts, rationalization of fringe be- Business Enterprises), and we donate a commitment with its employees to act nefits and voluntary leave. technical material to Schools and Fa- with the utmost transparency. culties. The company has launched an extensi- It has encouraged ve and comprehensive communication plan that has reached into every work- employee participation place and which explains the strategy in conservation of the to be followed to address the profound changes taking place in the market, and environment, cultural the eventual impact of each measure development, and that is taken. contributions to social It is well known that the economic situa- campaigns tion in Spain, where a significant portion of the Group’s operations are based, has been deeply affected by significant shifts related to a systematic drop in adverti- In some of the businesses, Social Res- sing spending, the emergence of new ponsibility is channeled through the As- technologies, and new consumer habits. sociation “025 Project” which manages These changes have forced adjustments donations from employees and from the across all companies in the sector. At company and distributes the funds thus PRISA, however, thanks largely to its raised to NGOs and Development Aid extraordinary geographical and business Foundations. One noteworthy event is diversity, the impact has been to some the organization’s annual Solidarity Day. extent absorbed and the Group has been more able than most to gradually In 2013 employees were encouraged to apply the required adjustments. get involved in a range of social responsibility initiatives in which the company Unfortunately, the circumstances des- participates, including: environmental cribed here have forced the Group to conservation initiatives, donations to resort to employment adjustments and social campaigns, and participation in staff cuts, which the company has at all events that foster the cultural develop- times kept to the minimum necessary. ment of society. These adjustments have been carried

98 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

PRISA workforce

2013 11,443

2012 12,191

Annual rate of rotation in 2013: 5% Note: The rotation rate is measured by comparing reincorporations and leaves, divided in terms of active workforce

Workforce by sex

2013 2012

Female 5,493 (48%) 5,644 (46%)

Male 5,950 (52%) 6,547 (54%)

Workforce by geographic region

2013 2012

Spain 5,607 (49%) 6,313 (52%)

International 5,836 (51%) 5,878 (48%)

Total average investment in training per employee

2013 7%

2012 6%

99 Sustainability Report 2014 Year in review PRISA, a global group

PRISA personnel by contract type

Temporary

2013 11%

2012 12%

Permanent

2013 89%

2012 88%

prisa personnel by bussines area

2013 2012

Education & Publishing 33% 36%

Audiovisual 27% 26%

Radio 23% 24%

Press 11% 9%

Digital 1% 1%

Other 5% 4%

100 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

PRISA personnel by area of activity

Qualified technical personnel

2013 48%

2012 49%

Middle management

2013 12%

2012 12%

Management personnel

2013 4%

2012 4%

Other

2013 36%

2012 35%

101 Sustainability Report 2014 Year in review PRISA, a global group

PRISA employees by employment category

Sales and marketing

2013 35%

2012 34%

Content

2013 31%

2012 31%

Production and logistics

2013 18%

2012 20%

Administration & management

2013 16%

2012 15%

102 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Procedures for communication with employees

Grupo PRISA is committed to maintaining open and fluid communication with employees through the designa- ted channels that each business establishes for this purpose. These include intranets, newsletters and regular communications. In addition, in accordance with established legal procedure, regular meetings are held with workers’ representatives. The Touyoutome communication platform, launched in 2011, is constantly updated with news on the Group’s activities as well as on the state of the industry, and is a two-way communication mechanism whose use is increasing gradually.

The corporate Intranet Toyoutome also in Spain and in the international arena. PRISA JOBS is a tool included in in- boasts features that allow for the chan- This plan is coordinated by the PRISA tranet, that posts internal vacancies neling of employees’ ideas that might Office of Corporate Transformation to and facilitates job rotation and mobility improve the products and processes of foster participation in all those initiatives among employees of the Group. This the Group. that will spur the organization towards improves the working environment, fa- greater innovation and technological pro- cilitates the process of introducing a Additionally, the distinct business units gress, while at the same time giving the culture of cross-corporate and division use their own intranets for any commu- Group a more horizontal structure that is entrepreneurship and functional flexibi- nications with their employees on in- better equipped to recognize individual lity, and enables employees to develop formation specific to their businesses. talent. The participation of these agents their skills, their interests and talents. It There are also company newsletters, has been decisive for the ongoing cul- thus offers employees a more dynamic with corporate or commercial content, tural change towards a more digital and career path. that are regularly sent out to anyone in- collaborative world. The selection pro- terested / involved. cess for Agents of Change has been Total number of job offers managed conducted using a particularly deman- in 2013: 86. In 2013, surveys were conducted on ding methodology in a multilateral and Total number of applicants and / or the work climate in certain companies, heterarchical fashion to ensure that the internal candidates in 2013: 198. including Media Capital, PRISA Brand resulting agents are employees from the Solution and Santillana USA. middle and technical ranks of the organi- By the end of the year, we were able to zation, thereby creating a flow of opinion facilitate 26 changes of post to internally The evaluation tools employed to as- and the bottom-up structure required to cover jobs (30% of total job postings). sess work climate included internal de- achieve the objectives contained in the This represents a significant increase partmental meetings, meetings with PRISA transformation plan, which is cu- over the figures for 2012. The challen- representatives of the employees, the rrently being implemented from manage- ge now is to increase the rate of inter- monitoring of employee participation in ment level. nal rotation during 2014 and thereby initiatives and projects, an open commu- cover a greater number of vacancies nication policy from Human Resources, Professional development of at intermediate and higher levels of the and media and communication tools. employees organization. These mechanisms were complemen- ted with a range of further tools, parti- During 2013, a range of tools aimed at Campus PRISA is an on-line training cularly, the program for the identification fostering the organizational and cultural portal for all Group employees and is of Agents of Change, which began in transformation of PRISA have been en- focused on developing employees’ skill 2012 and continued apace in 2013, both hanced: sets, and to complement the process of

103 Sustainability Report 2014 Year in review PRISA, a global group

sectoral professional retraining that is tiatives are channeled. It has message certification on innovation and knowledge demanded by the dramatic metamor- boards, a suggestion box and a com- management. phosis of the traditional media economy plaints channel. into a digital one. Number of registered users: 570. There is also a monthly newsletter, fea- Total number of items of published With nearly 2,000 students enrolled turing the corporate highlights of each knowledge: 45. in courses specializing in the digital month. world, Campus PRISA has become yet As a system for accelerating cultural another tool that fosters transformation Mi Idea! This is an open innovation change and for cultivating the spread and the improvement of the working platform aimed at getting all employees of prosocial behavior among emplo- environment. All course modules are more involved by making suggestions, yees of the Group, as well as to raise being designed and taught by emplo- sharing ideas for improvement projects the productivity of the existing ecosys- yees of the organization, which is once and even intellectual property patents. tem of tools, as described above, all em- again promoting a culture of knowledge This tool is designed to identify both ployee contributions -- whether they be and creativity among the workforce. individual talent as well as any groun- to the Experience Factory, Mi Idea! or dbreaking new ideas that may emerge Campus PRISA -- are being integrated In parallel, we have developed a series from any part of the organization. Mo- into the public profile of each emplo- of classroom sessions, workshops and reover, the innovation departments and yee on the Global Intranet Toyouto- seminars devoted to innovation and the Agents of Change of each business me. These are being made accessible knowledge. Each of the sessions was unit set challenges to encourage parti- through the Global Intranet’s search fa- dedicated to a specific sector, which has cipation and thereby gather the seeds cility, placing all talent at the service of served to keep the organization informed of ideas for projects that will improve all knowledge distribution in a transparent of emerging trends in all markets whe- Group businesses. way and on-line. re the Group operates. This fosters the development of both intellectual capital Total number of users: 456 (compa- Training and the continuing professional and social capital across all professional red to 256 in 2012). development of employees is a key ele- groups, as well as PRISA’s relations- Total number of spontaneous ideas ment in the Group’s policy to maintain hips with other sectoral and international proposed: 271 (compared to 204 in the highest standards of professiona- companies. 2012). lism, quality and career advancement. However, measures to contain costs Total number of users: 1,920 (vs. Additionally, the fourth quarter of 2013 wit- have also affected training, significantly 1,151 in 2012). nessed the launch of yet another initiative reducing the budgets allocated to this Courses developed: Powerpoint, to boost the development of the collecti- end. Nevertheless, this has in fact led Sharepoint, Outlook, educational ve intelligence of the Group through the to improved efficiency for training initia- innovation seminar, the rules of identification of Technology and Competi- tives, ensuring that new knowledge thus knowledge management, workshop tive Intelligence Experts, who are respon- acquired has an immediate application on Ultra High Definition, data jour- sible for providing crucial knowledge to in the Group processes and products. nalism course, seminar on Branded employees throughout the organization. At the same time, internal and cross- Content. These experts have an on-line platform corporate training in group companies called the Experience Factory to which has been strengthened, in order to Since its launch in June 2012, Campus all employees have access. This plat- maintain and improve competitiveness. PRISA has grown progressively and form, considered the universal knowled- continuously, with notable peaks in re- ge management tool of the Group, hosts In 2013 the downward trend for spen- gistration coinciding with the launch of all the experience and knowledge gained ding on training has been reversed, with each new module and course. from the business, organizational and the 0.8 million euros invested in training most significant technology projects once programs, a figure that in the 2014 bud- The goal for 2014 is to increase the they have been completed. The tool not get rises to 1.2 million euros. offer of courses to meet the most urgent only serves as a document repository, needs that might be detected anywhere but it also accelerates and measures the The number of hours of training in the in the organization. production of knowledge within PRISA. group exceeds 75,000 (almost 70,000 The goal for 2014 is to accumulate ever in Spain and Portugal and 7,000 in Latin The Corporate Intranet Toyoutome is more valuable content on the platform, America), which represents an average the channel through which these ini- until it is ready to obtain AENOR 166006 of more than 12 hours of training per

104 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

employee in Spain and almost 2 in Latin thereby aligning the overall objectives whose conditions are governed by an America. of the Company with the expectations individual and personal relationship with of the employees. the Group. Above and beyond these co- The ratio of training hours over annual Encourage the involvement of em- llective labor agreements, the Group’s average workforce is 7 hours / employee. ployees in the appraisal process, and companies substantially improve condi- fostering their participation through tions and thus provide our professionals In Spain and Portugal 90% of training self-evaluation and by creating ap- with an attractive and competitive wor- hours have been allocated to Qualified praisal commissions. king environment. Staff enjoy total free- Technical Personnel, 9% to Senior Ma- Encourage formal internal commu- dom to participate in trade unions and nagement and 1% to Middle Manage- nication between the various hierar- the Group fosters social dialogue for ment. chical levels, clarifying the profiles, any internal debate that might improve responsibilities and requirements of the development of its businesses. In Latin America, 36% of training hours personnel (job-person match) have been allocated to Technical Per- The percentage of employees who Elaborating on this issue, it should be no- sonnel, 29% Senior Management and are evaluated annually is not the sa- ted that labor relations within the Group are 35% to Middle Management. me for all Group companies. Depen- governed by the application of collective ding on the specific business unit, a agreements at a sectoral level, at the level With regards to the training in the areas full 100% of the employees may be of groups of companies and at a Group le- of Human Rights, Information Security evaluated or else only those who ha- vel, and all these coexist harmoniously in and Standards of Conduct / Ethics: one ve annual variable compensation as establishing the best working conditions employee received training in Human part of their remuneration plan. for all employees. Rights, and twenty in information security, and, in countries such as Brazil, all Commitment to our human capital At PRISA there is no risk factor that staff have received training in standards might jeopardize collective bargaining. of conduct / ethics. Our Human Resources policy is a reflec- Such bargaining is not only a constitution of our conviction that our human cational right nor is it merely a procedure The current job performance appraisal pital is our best guarantee for meeting our in labor law, but is also considered by system is part of the annual variable com- commitments to society. We believe that: the Group to be an effective vehicle for pensation program, applicable across employee participation. The Group has the company. It is a system of individual There is only one way to inform, edu- collective agreements at a sectoral level, performance evaluation, whereby a per- cate and understand people, and that at the level of groups of companies and formance appraisal of employees is ca- is through people. at a Group level that are all implemented rried out over a given period within the There is only one way to be world lea- within the framework of existing legisla- organization, based on a series of crite- ders in communication, and that is by tion and that of the collective agreements ria depending on the functions of the job developing leaders among our team reached. Also, periodically, and in com- and the sector. members. pliance with regulations in this regard, There is only one way to be respon- representatives of the employees are Drawing on the best practices in operation sible in society, and that is by having provided with timely information on the in those business units that have greater independent and socially committed progress of the businesses. Meanwhile, experience and more sophisticated eva- professionals. the timeframes established in the current luation processes, in 2014 the Group plans legislation or collective agreements are to design and implement a new system All the Group’s companies believe in strict rigorously adhered to. that will allow it to better identify talent in respect for the basic labor rights as recog- the organization and foster the develop- nized by the International Labor Organiza- Non-discrimination and equal ment of employees. tion, especially in issues related to equality opportunities and non-discrimination on the basis of sex, The objectives pursued in its design and ideology or beliefs as well respect for the Grupo PRISA endorses, supports and implementation are: labor laws of the country in which each promotes all policies that contribute to company operates. equal opportunities and non-discrimi- Creating a common model that reflects nation based on race, gender, political levels of performance and results that All our staff are subject to collective la- or religious beliefs. In their daily ma- are generally approved, endorsed and bor agreements in each of their com- nagement, Group companies strictly accepted throughout the organization, panies, except for senior management, comply with these principles, with such

105 Sustainability Report 2014 Year in review PRISA, a global group

policies detailed in all collective agreements.

It is worth reiterating that PRISA has adopted a Code of Conduct, mandatory for all employees, in which pluralism and respect for all ideas, cultures and people, are set out as the company’s core values. PRISA is committed to respecting and protecting human rights and civil liberties, with the chief objective being respect for human dignity.

A statement of principles is available on the Group’s Intranet and the Intranets of the individual Business Units that inform and guide company operations in the areas of equality, diversity and the integration of disadvantaged groups.

The Group ensures that many of its service needs are met through special employment centers, whose staff is composed of persons with disability.

The number of people with disabilities in Special attention to the implementa- for men was 52% in 2013, compared the group workforce is 47 (36 in Spain / tion of equal opportunities between to 46% for women and 54% for men in Portugal and 11 in Latin America). men and women in access to employ- 2012. ment, promotion, training, job security The development and promotion of this and pay equity. Additionally, 29% of senior management policy is intended to comply with the re- posts were occupied by women in 2013, quirements of LISMI (Law for the Social compared to 27% in 2012 and 40% of Integration of Persons with Disability). Group’s intranet contained middle management posts were held by our declaration principles women compared to 37% in 2012. In the collective agreements of some companies there is a chapter, which has underlying its activity, Gender equality is also present in agree- been developed by an internal protocol that promotes equality, ments with the Legal Representation of for action, on equal opportunities and diversity and inclusion of Workers. And Group policy encourages nondiscrimination, sexual harassment the promotion of women to managerial and gender-based violence. disadvantaged groups positions.

The principles that inspire both the The base salary is determined in the va- Group and its workers are: rious collective agreements applicable to Commitment to creating positive work the Group and there is no difference bet- Compliance with the principle of equal environments, to preventing bullying ween men and women’s remuneration. treatment at work. and harassment. and to pursuing and resolve any cases that might occur. All Group companies possess establis- Rejection of any discrimination on hed procedures for reporting allegations grounds of sex, marital status, age, The Group’s population pyramid shows of discrimination, harassment, abuse or race or ethnicity, religion or belief, an almost equal distribution between intimidation, the use of which triggers disability, sexual orientation, political men and women. Within the Group, the the necessary actions to correct this beliefs, trade union membership, etc. percentage of women was 48% and type of conduct.

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In 2013, not a single instance has been Special voluntary leave with guaran- Management of Personnel Protection detected that required a diagnosis of the teed readmission, financial benefits Items. risks of discrimination. and social security contributions. Medical examinations. Preventive Campaigns. Social benefits Longer annual holiday with financial Health Promotion. benefits and social security contributions. It is Group policy to provide companies PRISA’s Joint Prevention Service has with adequate resources so as to offer Longer weekend (4-day working its own space within the Intranets of employment benefits that will be suffi- weeks) while maintaining social se- the various constituent companies. This ciently attractive to the very best pro- curity contributions. Portal hosts information on prevention fessionals. It is worth noting that PRI- campaigns, news of interest, legislati- SA operates in 22 countries and has Leave for training with help to cover ve developments... so that all workers more than three hundred companies. costs as well as social security con- remain fully and permanently informed Each market in which it operates has tributions. about their health and safety. special characteristics to which Human Resource Management Policy must be Occasionally, more specific campaigns sensitive and thereby be in a position to During 2013, these are conducted. In 2013, these included: offer an appropriate response to both measures favoring a the needs and the expectations of the Blood donation campaigns. These professionals joining these companies. balance between work take place twice a year in collabora- Within this framework, in 2012 we de- and personal life have tion with the Red Cross. signed a flexible benefits and remune- been maintained ration program, implemented in Spain, Smoking cessation campaign. Mo- which in 2013 has been broadened and tivational and informative workshops improved. Portugal has followed suit have been developed covering the and employees there now have dayca- risks of smoking, and help is offe- re and school vouchers. The objective Workplace health and safety red in the monitoring of the different of this plan is to allow our employees to treatments. select their benefits in accordance with Throughout 2013, PRISA remained their real needs and to thereby potentia- committed to its objective of promo- Back and Posture Workshops. lly increase their net remuneration. ting a preventive culture throughout its Theoretical-practical course which businesses. Noteworthy in this regard is teaches good posture and habits, both In 2014, it is planned to extend the the Group’s commitment to comprehen- for work and in one’s personal life. scheme to all business units and Group sive compliance with current regulations companies in Spain. and the integration of risk prevention in First Aid Courses. These practical the general management systems of courses are given in small groups. Ba- Flexibility measures companies. The Preventive Policy is sic knowledge that everyone should available to all employees on the Intranet know for dealing with emergencies. PRISA’s companies have come to un- of the Business Units. derstand the very real benefits of offe- Anxiety and stress. Classroom cour- ring balanced work days that provide All actions carried out are aimed at se to acquire skills for improving the an optimum balance for our staff’s pro- improving safety and health at work. emotional well being of workers skills. fessional and personal lives. Many of Among these are: our companies offer employees flexi- Road Safety. Recommendations for ble work days, home working, and the Preventive Plans. safe driving. possibility of working intensive shifts in Psychosocial Assessments (Catsa, summer, at Christmas and Easter. Itaca and El País). Working in offices. Ergonomic ad- Evaluations of facilities. vice on appropriate computer use Additionally, in Spain, during 2013, the- Continuous training in Occupational through guides, brochures and videos. se measures favoring a balance bet- Health and Safety. ween work and personal life have been Implementation of Emergency Plans. The number of work-related accidents maintained, with the plan consisting of Coordination of business activities. that occurred in Group companies in four elements: Investigation of accidents. Spain was 83 (38 men and 45 women).

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The summary of absenteeism rates due Identify and promote talent within the to accidents, by business and gender is organization. in the right table. Homogenize processes to achieve The number of cases of sick leave re- synergies in terms of resources. ported in Group companies in Spain was 1,062 (262 men and 800 women). All those personnel management initiatives envisaged by the Human Resources Generally, in all business units of the Committee of the Group for the year 2014 Group, 100% of the workforce returns aim to meet the following objectives: to work after maternity / paternity leave. That these measures improve identification with the organization, as well Regarding deaths by accident, there as employee commitment and pro- has been only the death, of a male, at ductivity. PRISA Radio. That the implementation of these In 2013 there were a total of 3,214 rein- measures take place in the short / corporations and 3,422 leaves of abs- medium term. ence. The number of reincorporations as a percentage of the total average That these measures have the grea- Group workforce is 28%. test possible impact across the organization. The summary of the rates of absenteeism due to common contingencies by That these measures facilitate the business and gender is in the rihgt table. standardization of key processes for personnel management. Future challenges Drawing on these principles and objecti- In 2014, while recognizing the need ves, the Group’s Human Resources De- for cost containment policies, the De- partments envisage the development of partments of Human Resources of all a cross-corporation action plan encom- business units are committed to begin passing all human resources teams working on the implementation of pro- from each Business Unit, to be supple- jects that will allow us to build the future mented with the latter’s own individual and bring about a qualitative improve- initiatives, all of which will be adapted to ment in our employees’ lives. the specific needs of each unit.

The principles guiding the development This plan includes projects that will of this new model of Personnel Mana- cement the functions of the HR de- gement are: partments, including the definition of a new performance appraisal system, the Achieve a qualitative improvement in development of a project for the clas- the management of HR. sification and description of jobs, and the implementation of a remuneration Facilitate the development of the model for managers. There will also be skills and abilities of professionals. initiatives to improve work and family- life balance and to promote training with Promote a culture of high performan- new initiatives, at both internal and exce and professional standards. ternal levels.

Reward commitment to the organization and contribution to its objectives.

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Distribution of employees by gender

31/12/2013 31/12/2012

Women Men Women Men

Senior management 130 316 127 335

Middle management 558 845 544 937

Other employees 4,748 4,846 4,973 5,275

Total 5,436 6,007 5,644 6,547

Absenteeism rates due to accidents, by business and gender

Absentee Men Women rate percent percent

Audiovisual 0,09% 38% 63%

Digital 0,11% 0% 100%

Education 0,41% 50% 50%

News 0,16% 50% 50%

Radio 0,20% 57% 43%

Total 0,16% 47% 53%

Absenteeism due to common contingencies by business and gender

Absentee Men Women rate percent percent

Audiovisual 0,03% 50% 50%

Digital 0,12% 50% 50%

News 0,04% 59% 41%

PBS 0,05% 33% 33%

Radio 0,06% 46% 46%

Rest 0,20% 67% 67%

Santillana 0,03% 40% 40%

Total 0,04% 48% 52%

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Responsible management of our manage processes across the entire have access to new tools. It allows them users and digitization value chain of our content, allowing us to contact their colleagues or simply share to maintain the perfect balance as we an item of news on the Wall. Monthly data Digital technology has definitively pla- promote digital technology as a source show averages of around 130,000 page- ced people at the center of everything, of wealth and added value -- without views, representing an increase of 81% and companies in the business of crea- ever losing sight of the traditional stren- compared to data from 2012 (70,918). Si- ting and distributing content must now gths of our brands. milar positive trends can be seen for data rise to this new challenge. on Unique Browsers on the intranet with growth of 83% (15,650 unique browsers) The responsible management of our Responsible management of for the monthly average in 2013, compa- users must first start with preparing communications red to 8,550 in 2012. our professional teams to face the challenge of digital transformation, PRISA’s Corporate Communication and There is a broad range of a transformation that requires us to Marketing has adopted a proactive ap- be ready to respond appropriately to proach focused on the continuous impro- controls and procedures to changing user and consumer habits. vement of the Group’s reputation. The key maintain the perfect balance To this end, over the past two years, strategies are based on Integral Commu- PRISA has been promoting an ambi- nication, research and ongoing analysis, as we promote digital tious transformation plan to provide positioning, segmentation and communi- technology without ever us with the organization and corporate cations 3.0 in order to properly manage culture necessary to understand the Corporate Identity, Internal Communica- losing sight of the traditional opportunities offered by technology tions, External Relations, and Social Res- strengths of our brands and the digital world for our business ponsibility. group. This plan includes training and professional development programs All too aware of the importance of coor- that will enable our internal users to dination for a group of companies ope- This permanent communication platform adapt to this new reality. rating in 22 countries and with a broad for direct communication is supplemen- portfolio of products and services, it is ted by three further services. The daily Never before in its history, has media essential that we are equipped with an tweet, where we share a topic related to had this opportunity to listen and speak appropriate communications network. the transformation of the company, the directly to its readers. Digital technology At PRISA, there are two permanent fo- Toyoutome blog on Digital Trends, and has exponentially multiplied the audien- rums for internal communications and the monthly PRISA Newsletter, started ces of traditional media. In the case of dialogue. First, a weekly Communica- in 2013 and just the latest addition to PRISA, the Spanish and Portuguese lan- tions Committee, which brings together our communications arsenal as we stri- guages have allowed us to cross borders the communications directors from the ve to share and involve everyone in the by removing all barriers to communica- various business units and the heads changes. The use rate of this new infor- tion. This helps us to fully understand our of Human Resources, Analysts and In- mation service, exceeding 30%, reflects users’ habits, and to thereby enhance vestors, and Transformation, to correctly the desire of PRISA professionals to be content according to their expectations. oversee internal and external communi- kept informed of the Group’s progress. Now readers and clients not only want to cations activities at all levels. Secondly, read. Importantly, they also want to write, the Social Responsibility Observatory they want to participate in the construc- meets each month to check up on the tion of collective opinion, express them- progress of action plans, as well as in or- selves and become part of the content. der to be kept up to date on latest trends Here, the interactivity of our platforms with a view to their constant monitoring . and social networks are playing a key role, and we are developing all these Of special note is the internal communica- tools with the utmost care to ensure the tions policy, which has undergone a com- independence, rigor and quality that has plete overhaul in recent years at PRISA. always characterized us. Our common intranet channel, Toyouto- me, is a treasure trove of information on There is a broad range of controls and the company and a meeting point that is procedures to address and properly used daily by our professionals, who now

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Responsible management of our no single supplier enjoys any initial gations that the Group requires of all its suppliers advantage, thus fostering legitimate suppliers. competition. The goal of PRISA’s purchases and Potential suppliers will not be invited There are four criteria in the process of procurement policy is to build up a so- to participate in the adjudication pro- adjudicating and authorizing potential lid base of suppliers and collaborators cess. suppliers: which will enable all our companies to All those who apply to become acquire goods and services under the suppliers have a right to request an Quality of the product/service offered. strict criteria of efficiency, cost, covera- evaluation of their particular adjudi- How the service matches our requi- ge and technical and productive capaci- cation process. rements ty. PRISA also evaluates the supplier’s All applications will receive a reply Cost and ability to deliver on issues integrity and its fulfillment of its fiscal, la- accompanied by comments on their related to CSR. bour, human rights, environmental and, acceptance or rejection. A negative Confirmation and certification that the above all, the legal obligations in force reply is in no way an obstacle to sub- Group’s CSR criteria have been met in that country. mitting future applications, once the All potential suppliers interested in be- The Corporate Purchases Department coming certified as PRISA suppliers is the first contact PRISA will have with should apply via the Electronic Purcha- potential suppliers and this body over- The Corporate Purchases ses Platform. The process is subject to sees the relations of suppliers with the Department oversees the SOX and related internal controls re- Group’s companies. Since 2009 it has quired of companies listed in the U.S. focused on three areas of action related relations of suppliers with market. This channel manages Group- to Group CSR policy: the Group’s companies, supplier relations, all aspects of the process, including potential supplier regis- Selection and management of focused to Group CSR tration, application, the certification and suppliers, these are seen as crucial policy authorization of all our suppliers world- stakeholders in the company’s day- wide as well as ongoing follow-up and to-day operations. periodic assessment according to those Paper management. Paper is the criteria previously outlined. most important raw material used reasons behind the rejection have by most of the business units and its been addressed. All suppliers must be certified and sustainable use must be part of any The results of the adjudication pro- authorised prior to forming part of our environmental policy. cess, including a summary of the cri- list of suppliers To determine new areas where we teria employed, will be communica- can improve identification, mea- ted to the supplier in writing. For the past six years, the Department surement and management of the Initiatives for constant improvement of Corporate Purchases has been ma- company’s environmental impact. are in place, which boost quality to the naging and updating a data base of benefit of both parties. The supplier is the Group’s chief suppliers, evaluating To aid the the department to fulfill its obli- welcome to make any suggestions as them on key CSR criteria, including gations, a series of guidelines has been is felt necessary to improve relations paper management, recycling and drawn up which govern the relationship between the Group and suppliers. reuse of fungibles and CO2 emissions. between PRISA and its suppliers: Applicants must be in full compliance Selection and management of with Conventions 138 and 182 of the PRISA’s relations with suppliers are suppliers International Labor Organization (ILO) governed by principles of objectivi- governing child labor. Non-compliance ty, transparency, non-exclusivity and The acquisition process is based on the with these conventions will nullify any equal opportunities. principles of objectivity,transparency, contracts between the parties. All suppliers involved in any adjudi- non-exclusivity and equal opportuni- cation process will receive complete ties. The specifications of procurement PRISA favors suppliers who meet CSR and detailed information about the processes and negotiating rounds for criteria and who have SA 8000, ISO goods and/or services to be supplied. potential PRISA suppliers are detailed 9001 certification etc. Indeed, 74% of The information supplied will be iden- in the application forms, where there is our suppliers have a quality certifica- tical for all suppliers, ensuring that also information on conditions and obli- tion.

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Supplier Evaluation

2013 2012

Management system is certified or is being implemented plus voluntary codes 48. 02% 46.84%

Formal procedures to respond to customer concerns 78.89% 78.69%

Legislative Framework 95.28% 95.63%

Adequate environmental safeguards 76.30% 76.14%

Guidelines on corporate governance 85.56% 84.70%

Incorporation of Social Responsibility indicators in management code 80.42% 80.46%

Suppliers by type

Logistics: 1,55% Infraestructures: 1,30% Media and Public relations: 3,78%

General services: 8,04%

Production: 8,53%

Contents: 61,07%

System and communication: 15,73%

Suppliers billing > 600 K€ Source: ABC of suppliers 2012

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Authorized suppliers

Total Spain Foreign

Previous years 3,059 2,960 89

2012 (new) 99 89 10

2013 (new) 160 139 21

TOTAL 3,159 3,039 120

Carbon Footprint (PRISA: Spain and Portugal)

Conversión 2013 Conversión 2012 Form of Unit of factor Kg Equivalent factor Kg Equivalent transport measire CO2/ud of CO2 in Kg CO2/ud of CO2 in Kg measure Spain Portugal Total measure Spain Portugal Total

Hotel RN 17 13,073 1,875 14,948 254,166 28 12,439 S/D 12,439 348,292

Air Miles 0,31 11,189,170 1,382,685 17,571,855 3,897,275 0.18 12,068,311 1,119,419 13,187,730 2,373,791

Train Km 0.08 3,441,190 7,633 3,448,823 275,906 0.06 3,049,569 S/D 3,049,569 182,974

Rent a car Km 0.123 379,114 14,500 393,614 48,415 0.123 692,857 S/D 692,857 85,221

Total 19,672,976 1,406,693 16,285,692 4,475,711 15,823,176 1,119,419 16,942,595 2,990,279

notE: The sources for conversion factors are:: http://www.nef.org.uk/greencompany/co2calculator.htm (air), http://www.responsarbolidad.net/002_calcemision.html (train).

Consumption

2013 2012 %

Ink (kg) 270,047 321,564 -16.02%

Solvent (kg) 21,340 20,000 +6.7%

Plates (kg) 68,805 58,789 +17.03%

Plastics (kg of policarbonate) 69,369 - -

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Paper cycle in PRISA

Forests Raw material: 20% Raw material: 80% (fresh fiber) (recycled fiber)

Authorized manager (30% paper acquired)

Recycling Suppliers management Offices

Production Devolution waste Products 45.500 TN Press

Books Sale

Magazines Client (70% paper acquired)

Local environment (Spain & Portugal) 2013

In 2013, as in previous years, PRISA ca- pliance that contribute to the con- This policy is divided into three levels rried out a study of a sample of our wide tinuous improvement of our opera- of action: number of suppliers. In 2013, the num- tions: ber surveyed was 183, as compared to Emission control 180 in 2012, and they were evaluated PRISA will comply with all applicable Consumption control by service and percentage in volume of legal requirements, and will, whene- Waste Control purchases. ver possible, make every effort to an- ticipate them. The aim is to provide safe products and The group will actively strive to redu- services that respect the environment Responsible management of ce and prevent pollution and waste, throughout their life cycle, and to con- environmental resources and to conserve energy in all its ope- duct operations in an environmentally rations. responsible manner. PRISA is committed to reducing the The group will require its suppliers to costs and the impact that our opera- conduct their operations in an envi- Emission control tions may have on the environment. ronmentally responsible manner. The Group’s Environmental Securi- The group will ensure the safety of In 2010 the Corporate Purchasing ty Policy includes a series of basic industrial operations, to avoid nega- Department began collecting data on principles in the area of legal com- tive impact on the environment. suppliers who provide services in order

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to establish the equivalent weight of PRISA’s suppliers must comply with of managing raw materials as well as CO2 generated by travel and accom- certain environmental requirements in waste management. modation derived from Group activi- the manufacture of paper. The paper ties. The result (a decrease of the im- industry’s high level of environmental In 2013 we continued implementing the pact caused by Group trips, hotels and awareness provides a further guarantee use of “Chem Low” plates, which requi- car rentals in 2013) confirms the trend that suppliers are generally not merely re a less aggressive chemical concen- towards reductions seen over the pre- complying to environmental legislation trate and simplifies cleaning. vious year. The increase for air trans- but that they are wholeheartedly com- port is due to the revised C02-emission mitted to issues in this area. Parameters continue to be adjusted for factor for this mode. the consumption of ink, water and foun- Almost all PRISA suppliers possess the tain solution additives in the printing capacity to produce PEFC and FSC ac- process to optimize the amount of ink Consumption control credited paper, thus guaranteeing that used per million printed pages, and the controls are being carried out at the va- number of machines in operation has Responsible use of paper rious stages of the production process likewise been optimized. –from forest to printer– although this Grupo PRISA has always carefully does involve higher costs. Both ink and solvents are sourced by managed all stages of the lifecycle of PRISA from suppliers who are reviewed paper. The group works with paper ma- PRISA Noticias-Pressprint every year to ensure they are in pos- nufacturers who guarantee their adhe- session of quality certificates for ink and rence to environmental standards and Pressprint is the printers for the Group’s solvents. recycling, either directly or indirectly, print media in Spain. Its operations re- and all business units using paper com- quire the use of paper, ink and and alu- In 2014, the company will continue to mitted themselves over the course of minum plates. Pressprint uses techno- improve processes to reduce environ- 2013 to reducing their use, whether by logical innovation to constantly optimize mental impact by optimizing resources, modifying formats or opting for lower and responsibly manage their use. Over raw materials, and by reducing waste. weights of paper, while still guaranteeing the year, Pressprint continued its policy the quality of the finished product. of improving procedures, both in terms

115 Sustainability Report 2014 Year in review PRISA, a global group

Energy consumption to authorized local recyclers and waste Technological innovation allows us to managers, and we are continuing with optimize the use of resources and faci- During 2013, all Group companies have the process of replacing incandescent litates the responsible management of run campaigns to raise awareness and lighting with LEDs. any waste generated. This is achieved to foster a more rational use of energy through process improvement, auto- at their facilities and to rationalize ener- Santillana constantly strives to promote mation, adjustments to print output, gy consumption. recycling and reduce energy consump- efficient distribution, proper waste sor- tion by means of awareness drives ting and collaboration with industry-lea- To this end it we are in contact with a among employees. ding recycling companies. number of energy efficiency consultants to analyze the effciency of the range of The recycling of all types of materials is In order to optimize the amount of ink systems that currently exist in the market. conducted through authorized companies. used per million printed pages, we have adjusted consumption parameters for PRISA TV has continued to apply en- PRISA Radio has carried out a policy ink, water and fountain solution additi- vironmental measures to control ener- of continuous monitoring of energy use ves. We also continued implementing gy consumption and optimize on costs and equipment in order to increase the the use of “Chem Low” plates, which of paper and corporate digital statio- performance of all devices. Thus, con- require a less aggressive chemical con- nery, and thereby seeks to change ventional components have been repla- centrate and simplifies cleaning and re- how we generate, manage and distri- ced by other energy-saving ones mee- duces waste. The company periodically bute documents. We continue to ins- ting the strictest ecological standards. In tests ground and soil samples as well as tall multi-functional equipment to send 2013 we proceeded to replace 730 ha- groundwater to ensure the absence of and scan documents without printing logen bulbs with LED technology, achie- contamination. them, with corresponding savings in ving savings of 80%. paper and ink. Magazines by PRISA Re- PRISA Noticias uses paper as its prin- vistas bear a label (beside The company continues to separate all cipal raw material, meaning that ini- the barcode) to encourage waste generated and this is handed over tiatives to optimize use are constant. responsible recycling with

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the slogan “Please recycle this maga- environment are regularly removed by zine”. certified and authorized waste-management companies. Waste Control During 2013, all Group Corporate center companies have run All office printers are removed to a campaigns to raise Madrid recycling plant, where they are recycled according to current norms awareness and to foster and made available to suppliers for a more rational use of re-use. The company responsible for the operation is a Special Employment energy at their facilities Center, meaning that PRISA thus ful- and to rationalize energy fills a double objective: helping the consumption. environment and aiding workers with disabilities.

PRISA Noticias Recycling companies used by Pressprint:

Pressprint cuenta con gestores autori- Paper, cardboard and aluminum pla- zados que se encargan de retirar los re- tes: Carpa. siduos contaminados dePressprint has Used toner: Biotoner. authorized managers who are responsi- Lamps and lighting: S.I.G-Ambilamp ble for removing contaminated residues Used oil: Fondomovil. from ink, such as solvents. Aluminum is Contaminated cleaning materials: Mewa. gathered in containers which are then collected by an authorized agent. In Process optimization is an ongoing 2013, 68,805 kg of aluminum thus pro- goal. Indicators are established to produced were melted down for the develo- vide information on changing trends in pment of new products. the use of inks and aluminium plates. These indicators are ink consumption Pressprint recycles -- either at our own per million printed pages, plate con- plants or through outsourcing -- residual sumption per printed page and waste paper as well as returned newspapers generation by production volume. The- and magazine supplements. Waste and se indicators are reviewed monthly to residue generated during the printing achieve continuous process improve- process are classified by potential use ments. and are removed by recycling companies. Returned newspapers and magazine supplements are recycled by companies located nearby the distributors’ collection depots. We ensure that recycling companies possess the appropriate certification in waste management and disposal.

Other recycled waste includes plastic containers, oils, toners, and scrap iron, copper and other materials generated in the decommissioning of obsolete ma- chinery. Obsolete computers and other IT devices that may pose a risk to the

117 Sustainability Report 2014 Year in review PRISA, a global group

PRISA TV: direct consumption by primary source

Primary source 2013 2012 %

Electricity kw/h 18,219,947 16,569,623 +9.95%

Gas kw/h 6,938,252 6,212,155 +11.68%

Media Capital: direct consumption by primary source

Primary source 2013 2012 %

Electricity kw/h 5,287,603 5,751,256 -8.06%

Diesel kw/h 1,682 1,233 -36.4%

Gas kw/h 162,774 102,725 +58.45%

Water kw/h 9,023 - -

Santillana: direct consumption by primary source

Primary source 2013 2012 %

Electricity kw/h 679,974 666,158 +2.07%

Gas kw/h N/A 8,598 -

PRISA Radio: direct consumption by primary source

Primary source 2013 2012 %

Electricity kw/h 11,500,648 11,727,461 -1.93%

Gas kw/h N/A N/A N/A

Water kw/h 44,243 40,221 +9.9%

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PRISA Noticias: direct consumption by primary source

Primary source 2013 2012 %

Electricity kw/h 13,327,433 12,587,522 +5.87%

Gas kw/h 4,139,862 4,049,905 +2.22%

Water kw/h 15,224 10,918 +39.43%

Waste control

Resultados Recycling activity 2012 2013 2013-12

Disposal and recycling of paper 57 Tm 76 Tm –33.3 %

Disposal and recycling of batteries 475 Kg 250 Kg +90 %

Disposal and recycling of fluorescent lamps 188 unidades 564 kg -

Fosil CO2 Kg / paper Tm

Weighted average carbon intensity of paper used in the manufacture of paper PRISA 464.4 (data provided by the usual suppliers weighted consumption)

CO2 Kg

Equivalence of CO2 emitted from Tm total paper 23,168,659

119 Sustainability Report 2014 Year in review PRISA, a global group

Social and cultural initiatives WWF’s biggest awareness campaign, with a greater appreciation of trees and Earth Hour. the use of timber products. This initiative runs until June 2015. Fostering awareness of the issues For the fifth consecutive year, PRISA, facing society as official media partner, launched a PRISA lends its support to this project, major operation to support this aware- which has been declared an event of During 2013 the Group continued its ness campaign, which mobilized all exceptional public interest by the cen- tradition of fostering and promoting so- companies in all the countries where we tral government and which highlights cial solidarity, human rights and the en- operate on both sides of the Atlantic. the importance of forests in combating vironment in order to raise awareness climate change and in the reduction of among readers, viewers, listeners and In 2013, PRISA also became media greenhouse gases, and shows that it is users. PRISA’s media have long cham- partner for the state-run project El Ár- possible to build a sustainable future. pioned campaigns in favor of human bol es Vida (Trees are Life), an initiative rights and development as promoted by which aims to plant 10 million trees all Internally, and once again in kee- NGOs such as UNICEF, WWF, Intermón over Spain, and thereby foster a culture ping with PRISA’s and its business Oxfam, Fundación de Ayuda contra la Drogadicción, Ayuda en Acción, Red 1. “Caza y Pesca” distributed among Cross, Unicef, Manos Unidas, Medicos employees seedlings to plant in El Boalo. sin Fronteras, Save the Children and the UNHCR. Support is offered through 2. Trees are life. habitual reporting and specific sponsor- 3. Earth Hour 2013. ship or promotion deals.

Moreover, each of the Group companies individually collaborates on initiatives with third parties for the abovemen- tioned purposes. Such initiatives are shared on PRISA’s Social Responsibili- ty Observatory, a body in which all business units are represented and whose responsibility is to develop and manage a comprehensive global and cross-corporate social responsibility strategy and 1 2 to channel, support and coordinate the strategy of each of the companies and business units.

PRISA

PRISA, in keeping with its commitment to social responsibility with regards to the environment, works closely with the World Wildlife Foun- dation (WWF), the world’s largest independent international organization dedicated to conservation, to promote the year’s biggest mass participation event, which has been held every year since 2008. This sees hundreds of millions of people worldwide, companies, governments and educational institutions join together against 3 climate change by supporting the

120 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

units’ concern for the environment, clude Michael Robinson, sports commen- Addiction) and the Fundación COTEC CANAL+’s hunting and fishing channel, tator and director of CANAL+’s program for Technological Innovation. Caza y pesca, launched an initiative to Informe Robinson and Cadena SER’s plant oaks to offset CO2 emissions. radio show Acento ROBINSON, and Bor- In terms of university education, PRISA Seedlings were distributed to Group ja Prieto, director of MyMajorCompany in cooperates with a range of Spanish and employees before being planted on a Spain, the crowdfunding platform laun- Latin American universities, including Saturday morning in the El Boalo area ched by PRISA Radio in 2012. the Universidad Autonoma de Madrid, of Madrid, where the town hall provided with whom the Group runs the UAM-El land for the purpose. Also in November, PRISA, as part of its País School of Journalism and the Je- partnership with the Fundación SERES, sús de Polanco Chair in Ibero-American In December 2013, PRISA and all its sat on the jury for the 2013 SERES Studies; the Universidad Internacional companies, joined the UNICEF cam- AWARDS for Corporate Innovation and Menéndez Pelayo, the Technological Ins- paign to raise public awareness on the Social Commitment. titute of Monterrey (TEC) and the Mario urgent need to help children in the Phi- Vargas Llosa Chair. The headquarters lippines in the wake of Typhoon Yolan- In the field of innovation, research and of Santillana Foundation in the Americas da, that last November swept through development, PRISA works continuously (Colombia, Brazil and Argentina) develop the country, destroying entire villages with the Fundación Pro CNIC and in similar initiatives in education and cultu- and affecting more than ten million peo- 2013 the Group’s media supported the re, in collaboration with a wide range of ple, five million of whom were children. Foundation’s latest campaign in Spain institutions and the ministries of education In addition, PRISA encouraged the use “Al corazón de este país le queda mucha and culture of the respective countries. of the UNICEF crowdfunding platform vida” (The country still has plenty of heart), among employees, customers and au- whose main objective is to raise aware- PRISA Noticias diences to raise funds for this cause. ness about the vital work in research and prevention of cardiovascular disease PRISA Noticias’s companies contribute Promoting volunteering is another area in being carried out by CNIC, the National content and products that respond to which the Group is active. For instance, Center for Cardiovascular Research, led the concerns of society. El País, as a PRISA companies joined the SOMOS by Valentin Fuster, and that has put Spain general-interest newspaper, pays spe- campaign, led by NGOs such as Action at the forefront of such research. cial attention to issues related to the Against Hunger, Red Cross, UNICEF, environment, education, equality, child Ayuda en Acción and Save the Children. In the field of education and cultu- protection, and human rights, etc., both Group media covered the campaign via re, PRISA and Santillana Foundation nationally and globally. both content and advertising. have signed a range of agreements with cultural, educational and scientific The weekly supplement El País Sema- In addition, our employees actively institutions both in Spain and in Latin nal regularly devotes its pages to the collaborate with a range of NGOs. In America, including the Organization of publication of reports with social con- mid-2012 there was a charity bottletop Ibero-American States, the Inter-Ameri- tent, focusing on the defense of Human collection at the headquarters in Tres can Development Bank, the Royal Spa- Rights, written by journalists who travel Cantos, where most employees of San- nish Academy, the Instituto Cervantes, to the remotest corners of the world to tillana, PRISA TV and Corporate Cen- the Miguel de Cervantes Virtual Library bring readers first-hand news. The com- ter are based. The goal was to collect Foundation, the Royal Theatre Foun- pany regularly provides newspaper spa- as many bottletops as possible to help dation, the National Museum Centro ce for social and humanitarian causes. a good cause. The enormous success de Arte Reina Sofía, MACBA, Casa de Depending on the relationship with the of the initiative and the involvement of America, the Fundación Carolina, the NGO, these spaces and inserts may be staff prompted the Group to make this Brazilian Hispanic Cultural Foundation, free or take the form of advertising at initiative a permanent one that will help Fundación Conocimiento y Desarrollo sharply discounted rates. different foundations and NGOs. (Knowledge and Development Founda- tion), Fundación Empresa y Crecimiento The El País - UAM School In November, PRISA, through El País, (Business and Growth Foundation), the of Journalism Cinco Días, CANAL+, As and Cade- European Institute of Design (IED) and na Ser, helped publicize and cover the the Prince of Asturias Foundation. In the The El País - UAM School of Journalism fourth edition of the Brilliant Minds field of innovation, research and deve- is a non-profit foundation established in Congress, an event that brings together lopment the Group works continuously January 1987 as a result of a coopera- knowledge and creativity. Participants in- with the FAD (Foundation Against Drug tion agreement between PRISA and the

121 Sustainability Report 2014 Year in review PRISA, a global group

Universidad Autónoma de Madrid to provide 2014 a number of workshops were added international awards, aims to promote journalism training to graduates from any field. on specialized journalism: Photojournalism reading and teamwork among students and interview techniques, run by leading aged 14 to 18 from all over Spain. Since its foundation, the school, as part of professionals and aimed at anyone inter- its commitment to society, has contributed ested in journalism. It is also planned to run Now in its twelfth year, the program has to the training of almost 1,000 professio- a new workshop on Entrepreneurship and to date seen the participation of over nal journalists, who can in turn contribute Startups. 400,000 participants. In 2013, 30,818 to strengthening civil society and demo- secondary-level students and 5,595 cracy. The role of the journalist in society high-school teachers from 2,269 cen- is a theme that informs all the modules The school has contributed ters throughout Spain participated. and activity in the Masters program, which places great emphasis on practical work to the training of almost The program is envisaged as a teaching experience, thereby allowing our trainee 1,000 professional tool that fosters multidisciplinary lear- journalists to learn on the job. journalists, who can in turn ning, teamwork and the personal development of each student. It also encou- In 2013, there were two significant chan- contribute to strengthening rages the use of new technologies as a ges: the Masters in Journalism became a civil society and democracy tool for work and research. two-year program instead of one, in order to expand the curriculum and to include A jury composed of El País journalists a paid internship at a PRISA media com- is in charge of evaluating and selecting pany; and the calendar was changed, In 2013 there was a student trip to the the three best print or digital newspa- with the program now starting in Septem- European Parliament in Brussels, and a pers and the best work in eight catego- ber to adapt to the Bologna process. The number of students from the program, ries (interview, report, photography, co- program remains essentially the same, now in its 27th year, were called on to co- mic / cartoon strip, advertising, English with the same stress on integrating print ver the 5th World Congress against the section, multimedia and blog content) at and digital media. New workshops were Death Penalty, held in Madrid. a national level. added on data processing and management and more time is being spent on vi- El País de los Estudiantes deo and social networks. th El País de los Estudiantes is a free on- 1. 12 El País de los Estudiantes edition. Also in 2013, a new Data Journalism Work- line school newspaper project, organized 2. Journalism workshops for children shop was introduced, while in February by El País. The scheme, which has won in hospitals.

1 2

122 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Additionally, El País runs journalism that form an integral part of the network’s most disadvantaged groups; promoting workshops for children in Madrid hos- identity, such as “Informe Robinson” and and fostering the participation of emplo- pitals. reports by Jon Sistiaga, who has conti- yees in various initiatives; and promo- nued to seek out and tell stories focused ting sport, especially through initiatives Cinco Días, as a media outlet, strives to on social critique, solidarity, and genero- with football clubs with whom we have be influential and to create awareness sity... Examples include the reports de- agreements.The network also produced among readers of all the values of CSR. voted to women’s gymnastics, the story and aired social campaigns on different The paper endeavors to cover all social of the challenges facing an athlete with television channels and through other concerns, the dialogue between social multiple sclerosis, the report on the plight communication outlets. groups, and above all to foster respect of handball in Spain, and Sistiaga’s refor human rights ports on Chernobyl, the persecution of During 2013 advertising space wor- homosexuals in Uganda, and racism and th over 16 million euros were given to PRISA TV violence in the US. various charity campaigns run by Save the Children, Fundación Aladina, Unicef PRISA TV remains committed to acting CANAL+ has continued during 2013 and Action Against Hunger. responsibly in all its areas of activity. to collaborate on the production, pro- The company’s Social Responsibility motion and dissemination of Spanish PRISA Radio policy takes into consideration its po- cinema with films such as Futbolín, sition as producer and broadcaster of La gran familia española, Las brujas PRISA Radio, like the other Group com- audiovisual content, with the clear ob- de Zugarramurdi and Canibal, under panies, sees CSR policy as at the very jective that this remains perfectly alig- the slogan Estamos con nuestro cine core of its business operations. Such ned with its core business goal. In this (We’re with our cinema). In terms of operations are focused on news, in- regard, it is a pioneer in the application original production -which began in formation and entertainment, and the and development of new technologies 2010 and has been recognized with company is all too aware that aware in the audiovisual entertainment sector. numerous awards- the channel has of their impact on the process of social It remains committed to effective ma- continued with its project España en transformation. PRISA Radio is com- nagement, it promotes policies to re- Serie (Spain in Series), which has mitted to being perceived by society duce energy use and waste, it invests involved exhaustive work and enor- and its stakeholders as a responsible in ongoing employee training to facili- mous efforts, including in-depth in- and sustainable company. That’s why tate their career development, it fosters terviews with some 100 professionals the interaction between reputation and communication channels with viewers including actors, directors, designers social acceptance is considered key in and clients, and it develops and promo- and writers. The end result is a docu- the company’s planning of activities, tes content that will help to improve so- mentary series of four episodes that whether these be company initiatives cial awareness. explores the history of Spanish tele- or when it comes to offering support to vision series and the society in which others. In 2013, CANAL+ signed important they were created. In addition, CA- agreements to expand its audiovisual NAL+ is also promoting the creation Among PRISA Radio’s initiatives in content and its multichannel offer in HD. of documentaries and short films, at- the past year, special mention should It has committed itself to the develop- tending the most important film festi- be made of the Dial Awards Gala, ment and implementation of new tech- vals and supporting creators with the with the proceeds from the sale of tic- nology applications that will enhance CANAL+ Awards. kets going to the “Association Padre the user experience of all its customers. Laraña “ and the NGO “La Milagrosa”. It has maintained its commitment to pro- CANAL+ has also signed agreements The proceeds from 40 Principales’ vide added value to its content via new with universities and education cen- Spring Pop Concert, Primavera Pop services, and it has made YOMVI avai- ters to support the training of students 2013, went to the Red Cross cam- lable on new devices and has expanded in the processes of creation, develop- paign to support vulnerable young distribution. ment and broadcast of audiovisual pro- people affected by the current socio- ductions. economic crisis.The proceeds from In terms of content creation, CANAL+ the awards gala Lo Mejor de Aquí remains committed to responsible news CANAL+’s social solidarity initiatives y de Allí (The Best of Here and The- and information, and to the promotion of have increased dramatically over the re) were donated to the charity Casa culture and sport. In this regard, special last year. A number of projects have Caridad Valencia, a private charitable mention should be made of programs been rolled out aimed at: helping the institution that works to meet the basic

123 Sustainability Report 2014 Year in review PRISA, a global group

needs of the homeless. Cadena DIAL, In Colombia, Radio Caracol’s chief ini- Santillana with its program Àtrévete, organized a tiatives were aimed at promoting and radiothon with the slogan Ni un niño defending the rights of children and Santillana is a company that, ever sin- sin futuro (No child without a future), adolescents, providing guidance and ce its establishment in 1960, has been whose proceeds went to the charity Al- support to vulnerable people (displaced tirelessly promoting education, a crucial deas Infantiles SOS (SOS Children’s persons, victims of conflict, the disabled, area for the development of a critical Villages) in Spain. etc.), building a culture of reconciliation spirit among citizens, and for the deve- and peace in the country, and cham- lopment of people and the construction The El árbol es vida (Trees are Life) pioning the strengthening of the family. of a freer and fairer society. project was chosen as benefactor of the Examples of these campaigns include proceeds of the 40 Principales Awards Soldados W (Soldiers W), a campaign The publishing house endeavors to foster 2013. in favor of the pediatric hospital La Mi- respect for cultural diversity and thought, sericordia and Jingle Bell Rock. never losing sight of pluralism nor the ba- In Mexico, W Radio ran a special sic principles of a democratic society. broadcast to raise funds for victims of In Argentina, Radio Continental has the hurricanes Ingrid and Manuel, in co- collaborated with a range of NGOs, All materials developed by the company llaboration with the Mexican Red Cross. including Fundación manos en Acción are adapted to technological and social 40 Principales, meanwhile, held the 5th and Luchemos por la vida. development. With over 50 years of ex- edition of Arte 40, a project fostering ar- perience, the publisher has always been tistic creation. In general, all PRISA Radio stations in at the forefront of the latest trends and Spain and Latin America have conducted business opportunities to better meet The most significant campaign in Pana- social solidarity and cultural initiatives. In changing educational needs. ma was for the Patronato De Nutrición addition, all stations also provide free air- Con Grandes Pasos (Nutrition With time to NGOs and other social founda- With a view to sharing this spirit of in- Great Strides) to help reduce the rate of tions to help them spread their message novation and improvement in the deve- extreme poverty in rural areas. and gather support for their campaigns. lopment of textbooks, Santillana offers

124 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

UNICEF’s Enrédate program, designed to promote awareness of children’s rights in Spanish schools.

Santillana Foundation

Every year since its creation in 1979, Santillana Foundation, with its wide and varied program of activities, has set the standard for initiatives in the fields of education, culture, journalism and governance by creating spaces for reflection and dialogue, thus consolidating its institutional presence. In some instan- ces, the Foundation seeks answers to the latest and most urgent dilemmas fa- Launch of 57 historias del deporte por una causa solidaria. cing the culture and education sectors, with activities such as “The Cultural In- teachers a wide range of materials to “castle of solidarity” for the children’s dustries Forum”, the “Seminar on Cultu- facilitate their teaching: textbooks, tea- NGO Aldeas Infantiles and a donation ral Journalism” and “Education Week”. ching guides, material to improve as- of € 20,000 for its educational program In other cases, the Foundation organi- sessment, revision and greater depth, to combat student underperformance. zes and promotes encounters and dia- classroom schedules, handouts, digital logue among leading literary and artistic resources, etc.. Through the company’s In all the countries where its books are figures, such as the forums “Lessons digital area, the publisher investigates published, Santillana collaborates on and Masters” and “the Formentor Lite- new ways and methodologies in edu- social initiatives related to education rary Conversations”. cation with the goal of providing the with religious congregations and insti- educational materials and management tutions, foundations, cultural associa- Meriting special mention is the Masters tools required by today’s schools. tions, government agencies, schools, in Governance and Human Rights, orga- teachers’ groups, unions, parent asso- nized by Santillana Foundation, the Jes- Among the various initiatives carried out ciations and universities by supporting us Polanco Chair in Ibero-American Stu- by Santillana in 2013 was a pilot project teacher training, providing scholars- dies and the Autonomous University of to bring together different generations hips to attend events, through the do- Madrid, which in its third year has seen of a family in order to foster new forms nation of books to underprivileged chil- an ever increasing number of students, of communication through the Pupitre dren, by sponsoring conferences and primarily from Latin America. The cour- app. This initiative was run jointly with competitions and the co-publishing of se is taught by renowned senior faculty Sanitas Residencial Arturo Soria (Ma- materials. members and offers an academic pro- drid) through small workshops involving gram that responds to the most urgent senior citizens and their families. PRISA Ediciones’ Alfaguara Infantil y contemporary legal issues. Juvenil periodically, and especially over In collaboration with UNICEF, Santilla- the Christmas period, actively collabo- In Latin America, the Foundation’s ac- na launched the campaign Yo cuento rates with NGOs and foundations who- tivities are focused on fostering debate (I count), a platform that allows chil- se aim is to promote reading among on educational issues, and we support dren and young people to express their underprivileged children. These colla- initiatives that promote reading and li- opinions on issues related to building borations involve book donations. teracy. These initiatives include the Vi- a better and more caring world. The vaLectura awards in Argentina and the first initiative was a short story and art In December 2013, the publishing hou- Latin American Forum on Education, competition on the economic crisis in se Aguilar published the book 57 histo- which in 2013 was declared to be of pu- Spain, the world of work and family and rias del deporte por una causa solidaria blic interest by the parliament of Argen- social life. (57 sports stories for a good cause), a tina. In Brazil there were a number of book of over 300 pages featuring sto- important social initiatives, such as the The summer-season campaign Vaca- ries and anecdotes from 57 PRISA programs “Mestres da Obra (Masters of ciones Santillana involved building a sports journalists. The proceeds go to Works)” and “Pathways to citizenship,

125 Sustainability Report 2014 Year in review PRISA, a global group

ce and Human Rights, with a keynote speech by the president of the Inter- American Court of Human Rights (IA- CHR), Diego García-Sayán.

Presentation to the Library of Gover- nance and Human Rights: The Jes- us Polanco Chair in Ibero-American Studies, the Autonomous University of Madrid and Santillana Foundation formally presented on May 23, 2013, at the Casa de America in Madrid, the book Gobernanza democrática (Democratic Governance) (ed. Mar- cial Pons), at the inauguration of the Library of Governance and Human Rights -- outcome of the academic and research work of the Masters in Governance and Human Rights.

Acto de Graduación del Máster de Gobernanza y Derechos Humanos. The Cultural Industries Forum: In collaboration with the Fundación Al- language in the city”, as well various In 2014, Santillana ternativas, and with support from the social and cultural activities, offered in Ministry of Education, Culture and collaboration with a range of Brazilian Foundation is set to Sports, the Fundación Jesús Serra institutions. Meanwhile, the Santillana launch two new projects: and the Sociedad General de Auto- Foundation for Ibero-America in Co- res y Editores, Santillana Foundation lombia organized, in collaboration with the Center for Creative organized, in November, the fifth an- the Inter-American Development Bank, Industries and the Latin nual Cultural Industries Forum at the the conference “The Orange Economy: American Festival of Reina Sofia National Museum of Con- developing the creative industries”, with temporary Art, Madrid. This year, the the aim of stimulating debate in Latin Children’s Literature forum had as its title Apocalípticos o America and the Caribbean on the im- integrados digitales (Apocalyptic or di- portance of creativity as an integral part gitally integrated) and fostered debate of economic and social development. among professionals and experts on Spain the impact of new technologies on the In 2014, Santillana Foundation is set structures of the cultural industry. to launch two new projects: firstly, the in Madrid: Center for Creative Industries, in colla- In Mallorca: boration with the European Institute of Conference with the Robert F. Ken- Design, which will be the first business nedy Center for Justice and Hu- Formentor Literary Conversations. platform to promote the growth of inno- man Rights: In April, Kerry Kennedy, What should we do with masterpie- vative companies specializing in the cul- president of the Robert F. Kennedy ces?: In September, the fifth annual tural and creative industries and the In- Center for Justice and Human Rights Formentor Literary Conversations ternet; and secondly, the Latin American presented the Speak Truth to Power event was held in Mallorca, coordina- Festival of Children’s Literature, in co- (STTP) educational program, develo- ted by the Government of the Balea- llaboration with the Vargas Llosa Chair ped by her organization. ric Islands and Santillana Foundation, and the Miguel de Cervantes Virtual with the support of the Hotel Barceló Library Foundation. This will bring to- Graduation ceremony for the Mas- Formentor and the collaboration of gether sector leaders, writers and other ter in Governance and Human the Ministry of Education, Culture and industry players to discuss and enjoy li- Rights: On April 23, 2013, diplomas Sports. Entitled What should we do terature that fosters critical thinking and were awarded to graduates of the with masterpieces? Homer, Cervantes reflection among younger readers. third year of the Masters in Governan- and Shakespeare, Montaigne, Proust

126 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

and Broch, Woolf, Camus, Mann and in Buenos Aires. The award seeks to tion of Ibero-American States for Educa- others, the event asked guest writers to foster, promote and honor the most outs- tion, Science and Culture (OEI) and San- reflect on their own literary imagination tanding initiatives aimed at promoting tillana Foundation in Argentina. as shaped by their reading. They then reading. This sixth edition saw a record shared with the audience the hidden number of participants and projects. The Latin American Forum on Education treasures in each one of their favorite jury, chaired by writer Liliana Bodoc, in- The Latin American Forum on Edu- masterpieces. This year’s event saw cluded Margarita Eggers Lan, director of cation, organized by Santillana Foun- the participation of Manuel Rivas, Ber- Argentina’s National Reading Plan. This dation in Argentina and sponsored by nardo Atxaga, Ignacio Vidal-Folch and annual award is organized by the Ministry the OEI, was held in Buenos Aires Javier Goma, as well as other writers, of Education of Argentina, the Organiza- during the month of May. This year’s editors and journalists.

1. Formentor Literary Conversations. In Santander: 2. V Cultural Industries Forum. Lessons and Masters: For the seventh edition of the event, Santi- llana Foundation and the Interna- tional University Menéndez Pelayo (UIMP) brought together three prominent writers of children’s literature, a literature that fosters critical thinking and reflection among young readers, helps them construct their identities and that of the surrounding environment.: The seminar, held in June in Santander, debated and analyzed different aspects of the work of guest writers Joan Manuel 1 Gisbert, Maria Isabel Molina and Jordi Sierra i Fabra.

Cultural Journalism Seminar: The IV Cultural Journalism Seminar was held in mid-July, in Santander. The event brought together leading professional journalists, such as Lluís Bassets, Jesús Ruiz Mantilla, Antón Castro and Paul Ingendaay, among others, to dwebate the “Chronicle of culture: new media, new screens, new readers.” Santillana Foundation and the International University Me- néndez Pelayo (UIMP), in collaboration with TEC de Monterrey, organize this seminar every year and it can be followed at the www.periodismocul- tural.com portal.

Argentina

Vivalectura Award May saw the announcement of this 2 year’s winner of the VivaLectura Award

127 Sustainability Report 2014 Year in review PRISA, a global group

theme was “New challenges facing event, aimed at managers of public projects that enhance the quality of pu- our schools: Participation, citizenship education policy, is envisaged as a blic basic education. An initiative of the and new literacies”. It was attended by space for meeting and discussing the National Council of Secretaries of Edu- Jari Multisilta, director of the CICERO new National Education Plan, with the cation of Brazil, it is advised by Cenpec Learning Network, University of Helsin- participation of experts and public ad- (Centre for Studies and Research) and ki, Finland, who presented one of his ministrators. has the support of other entities such as most recent and important research Unesco, the National Union of Municipal projects, the Movie Platform: Mobile Vi- Pathways for citizenship. Portuguese Directors of Educatio (Undime), the Mi- deo Experience, which was developed Language in the City nistry of Education of Brazil,Fundación in the Advanced Multimedia Center at The second edition of this project, de- Itaú Social, Fundación Roberto Marin- the Tampere University of Technology. veloped and supported by Editorial Mo- ho, Instituto Unibanco and the Funda- derna and Santillana Foundation, and ción Victor Civita. Brazil in association with the Asociación Cida- de-Escola Aprendiz and the Centro de Signing of Agreement to participate in Distance-learning course for educators Acolhida para Refugiados da Cáritas in the Observatory for the National Educa- Promoted by Santillana Foundation in São Paulo, was aimed at fostering the tion Plan (PNE) Brazil, in collaboration with the Ministry social inclusion of immigrants and refu- In December, Santillana Foundation in of Education of Brazil and Undime gees arriving in Brazil and seeking op- Brazil signed an agreement to partici- (National Union of Municipal Directors portunities, through free lessons in the pate in the Observatory for the National of Education), this free on-line course Portuguese language and in citizens- Education Plan (PNE), an initiative em- takes place between January and hip which were conducted throughout bracing 20 civic organizations to moni- June. The on-line program consists of the school year 2013. The graduation tor the goals of the National Education 80 hours spread over 20 modules and ceremony took place on November 26 Plan of Brazil. The PNE Observatory is aims to guide teachers in the adoption in the auditorium of the Pinacoteca in an on-line platform that monitors the in- of appropriate methods and effective São Paulo. dicators for each of the 20 goals of the practices in achieving literacy for children National Education Plan. The project aged six in elementary school. Valued Voices Conference. Youth and has the support of national and interna- Adult Education, the education we tional organizations such as UNICEF, Mestres da Obra (Masters of Works) want: the experience of the best in the UNESCO and the Inter-American Deve- Santillana Foundation in Brazil, the sector lopment Bank (IDB). publishers Editorial Moderna and the This conference, organized by Edito- NGO “Mestres da Obra” invited cons- rial Moderna publishers and supported Colombia truction workers to participate in work- by Santillana Foundation, brought to- shops where they were able to learn gether over 400 of the best directors participation in the opening of the 21st techniques for the creation of artworks and administrators from the Brazilian Bogota Transformation Congress from discarded building materials. At state and municipal education system Committed to educational change the end of the program, all the artworks to discuss pedagogical approaches to in Latin America, UNO International were brought together in an exhibition assessment in the field of adult educa- continues to transform the region, this held in November. This initiative invol- tion. Speakers included experts such time via the Congress Inicio Colombia. ves about 500 construction workers in as André Lázaro, former Secretary of the states of São Paulo, Rio de Janei- Continuing Education, Literacy and Di- Plenary sessions and workshops were ro, Bahia, Pernambuco, Ceará, Maran- versity, at the Ministry of Education of held between January 13 and 15 , 2013, hão and Goiás. Brazil, Moacir Gadotti, director of the in the city of Bogota. The event was ai- Paulo Freire Institute, and Solange Pe- med at more than 1,500 teachers from Training seminars for teachers and pu- trosino, manager of Educational Servi- different regions of Colombia. blic education managers ces at Moderna. From January to June, Santillana Presentation of the Savia Caribbean Foundation in Brazil organized semi- School Management Award 2013 Collection nars on “Plans for Municipal Education: The School Management Award was The Colombian Academy of Langua- Challenges and Opportunities” in part- presented in Brasilia in October. Over ge, the company Argos and Santillana nership with the National Union of Mu- nine thousand schools participated in Foundation for Ibero-America presen- nicipal Directors of Educatio (Undime) this year’s award, which aims to improve ted in Bogota in April the first book of and the publishers Moderna. The free management practices, initiatives and the Savia Caribbean Collection. This

128 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

Promotion and dissemination of culture and the arts

From the very outset, PRISA has worked actively to promote the arts, culture and journalism by honoring excellence with some of the world’s most prestigious prizes and awards. In the field of journalism, PRISA holds the Premios Ondas Awards and the Orte- ga y Gasset Awards for Journalism that pay tribute to the best professionals and productions in radio, television, on-line, in music and advertising. In the publishing world, PRISA honors literary creativity in Spanish with the Alfagua- ra Book Prize. In the area of innovation, PRISA is behind the Cinco Días Awards for Business Innovation, with a 60th Anniversary of Ondas Awards specific category for Corporate Social Responsibility. collection will go in public libraries, Bank (IDB) organized the forum “The archive centers, universities, colleges orange economy: developing the creative Ondas Awards and botanical gardens in Colombia, industries” with the aim of stimulating deas a contribution to the dissemination bate in Latin America and the Caribbean The Ondas Awards gala has been ce- of Colombia’s botanical heritage. The on creativity as a key factor in economic lebrating the magic of media every No- event was addressed by Alvaro Cogo- and social development. The event was vember for 60 years. 2013 also marked llo Pacheco, scientific director of the held in late November in Bogota and was the 90th anniversary of the birth of radio Medellín Botanic Garden and curator an initiative arising from the publication of in Spain. To celebrate this double anni- of the collection.. the book The Orange Economy: an unli- versary, the Ondas Awards, awarded by mited opportunity, that the IDB made pu- PRISA via Radio Barcelona, paid tribute Santillana Award for Educational Expe- blicly available on its website. to the craft of journalism and the most riences famous voices in the country. Julia Ote- At the nineteenth edition of this award, Puerto rico ro, María Escario, Pedro Piqueras and which was held in November in Bogo- Jordi Évole were among the winners of ta, prizes were given out to the most Fourth annual Santillana education con- special awards, while Iñaki Gabilondo outstanding initiatives with the theme gress. The education we want: the ex- won the prize that was voted for by the “Are we educating for life? Emotional perience of the best in the sector public, for the first time this year, as best Intelligence, a review of the practice”. In October in San Juan, Puerto Rico, communicator. There was also a prize As in previous years, public and priva- Santillana Foundation organized the for game show Un, dos tres.... for best te entities from pre-school, primary and fourth annual Santillana education television program. secondary level education from all over congress, with the title “The education Colombia participated. This award has we want: the experience of the best in Over the past 60 years more than 1,500 consolidated its influence thanks to its the sector”. The aim was to present the Ondas Awards have paid tribute to the impact on initiatives in the area of social latest innovations in the international most outstanding professionals and responsibility.It is organized by Santilla- education sector. The congress was most exceptional projects in the radio na Foundation for Ibero-America and addressed by Nicholas Burbules, di- and audiovisual sectors, fostering and the Ministry of Education of Colombia rector of the Ubiquitous Learning Insti- encouraging excellence and innovation. tute and editor of Educational Theory, This year, the prize honored the profes- Forum “The orange economy: develo- and Francesc Pedró, the Chief of Sec- sion of critical journalism, the coverage ping the creative industries” tion - Sector Policy Advice and Infor- by Radio Galicia of the Santiago train Santillana Foundation for Ibero-America mation and Communication Technolo- crash and the program ‹Salvados› on and the Inter-American Development gy (ICT) in Education, UNESCO. the Valencia metro accident.

129 Sustainability Report 2014 Year in review PRISA, a global group

And to commemorate and celebrate this The jury was made up of journalists Pepa ago to mark the 30th Anniversary of the special 60th Anniversary, Cadena SER Bueno and Yoani Sanchez, photogra- daily business and finance newspaper launched Radio Ondas, a special radio pher Raul Cancio, actress Irene Escolar, to recognize the most innovative ini- station that allowed listeners to enjoy member of the Royal Spanish Academy tiatives in the business world and to prize-winning SER programs just as Dario Villanueva, the president of El País enhance the visibility of company efforts they were originally broadcast. Juan Luis Cebrian, the former editors-in- to improve processes, products and chief Joaquin Estefania and Jesus Ce- services. The awards gala kicked off following the berio, and the deputy editor-in-chief of El traditional red-carpet parade of winners País, Vicente Jimenez. Pedro Zuazua, In 2013, Acciona was the winner of at the Teatro del Liceo in Barcelona, communications director of PRISA Noti- the award for Most Innovative Busi- and was this year presented by Angels cias, acted as jury secretary. ness Initiative in the field of New Tech- Barceló and Manu Carreño, who were nologies for its energy self-sufficient assisted by Raquel Sanchez Silva and Alfaguara Novel Prize water treatment plant which enables Juanra Bonet. There was humor from the reuse of sludge and other indus- José Corbacho and musical performan- The Spanish author José Ovejero (Ma- trial waste. ces by Gloria Estefan, Miguel Poveda, drid, 1958) won the 16th Alfaguara Novel Manel and Rozalén. Prize for his book La invención del amor The award for Most Innovative Business (The Invention of Love), a story in which Initiative in Association with a Universi- Ortega y Gasset Awards for Journalism love is seen as a form of reinvention. ty went to the Basque Culinary Center, Using the conceit of invented love stories with the jury highlighting its endeavors Created in 1984 by the newspaper El and personal quests, Ovejero reflects on that foster “the transformation of a tradi- País, these awards are named after the the social situation in the country tional sector, gastronomy”. Spanish philosopher and journalist José Ortega y Gasset. The prize honours work This year, the jury was chaired by Ma- Endesa won the award for Most Inno- published in Spanish worldwide, recogni- nuel Rivas and was made up of Annie vative Business Initiative in the field of zing, in particular, work that champions Morvan, José María Pozuelo Yvancos, Corporate Social Responsibility for its human rights, independence, rigor, cu- Jordi Puntí, Xavier Velasco, Antonio project centered on the reconversion of riosity and passion: in short all the hall- Ramirez and Pilar Reyes (with voice one of the largest mining-electrical com- marks of excellent journalism. but no vote). plexes in Spain, As Pontes, following the cessation of mining activity there. The winner of the 13th edition of the Or- The Alfaguara Prize has established tega y Gasset Awards for Journalism in itself as a benchmark for quality literary The presentation of the awards took the print journalism category was Alber- awards given to an unpublished work place on October 24 in the auditorium to Salcedo Ramos (Colombia, 1963) for written in Spanish. Its prestige throug- of CaixaForum Madrid. This year’s jury his report La travesía de Wikdi (Widki’s hout the Spanish-speaking world means was composed of José Carlos Díez Journey), published in the magazine that prize-winning works enjoy international Gangas, who acted as jury president, Soho. The prize for digital journalism distribution, supported by the simulta- Jorge Rivera Garcia, Carlos de la Igle- went to Juan Ramon Robles (Madrid, neous publishing of the winners in Spain, sia Fuertes, who served on behalf of 1987) for the video he recorded during Latin America and the U.S. Prize-winning María Garaña Corcés, Montserrat Do- protests on September 25, 2012, with novels from its 15 editions have been mínguez Montoli and Pedro Zuazua police baton charging protesters inside translated into 22 languages. This year Gil, who served as voting secretary. Atocha Station in Madrid. saw a record number of contenders for the prize, with a total of 802 manuscripts In the category of photojournalism, the submitted from 19 countries. The award winner was Emilio Morenatti ( Zaragoza , is endowed with $175,000 (130,000 eu- 1969) from Associated Press, for a pictu- ros) and a commemorative sculpture by re taken in Barcelona on March 29,2012 Martin Chirino. , during the general strike . The prize for a lifetime dedicated to journalism was Cinco Días Awards for Business awarded to Jesus de la Serna (Santan- Innovation der, 1926), whom the jury lauded as “one of the most outstanding figures in the his- The Cinco Dias Awards for Business tory of Spanish journalism.” Innovation were established six years

130 Sustainability Report 2014 Commitments and future challenges Sustainability at PRISA

1. Ortega y Gasset Awards.

2. Cinco Días Awards for Bussines Innovation.

3. Alfaguara Novel Prize.

131 Sustainability Report 2014 132 Informe de Sostenibilidad 2014 5 Appendix

Application and scope of this report Correlation of indicators with GRI-G3.1guidelines and UN Global Compact Contacts with stakeholders

133 Informe de Sostenibilidad 2014 5 Appendix Application and scope of this Report

This Sustainability Report provides a Just as in 2011, in producing this Re- faithful and transparent overview of the port, we have followed the recommen- degree of development of the actions dations of the Guide for the Creation of and commitments of PRISA in econo- Sustainability Reports from the Global mic, social and environmental areas Reporting InitiativeTM, a key interna- over the course of 2013, and is similar tional organization in Sustainability to those of the past six years. The data Reporting. The GRI-G3.1 Technical presented here provide a broad sum- Protocols and the Principles of the mary of all the activities and operations Global Compact have been taken into of the Group in all the countries where consideration in the evaluation of data it is present. Further, the data provided for our calculations, leading us to refor- are either an aggregate of all the infor- mulate and combine some indicators mation at a Group level or broken down found in the Guide, to improve clarity PRISA declares this report, by company, depending on the nature and adapt them to our activity (see pa- corresponding to 2013, of said information with the goal of ma- ges 136-141). to be Class B. king it more amenable to the reader.

The Sustainability Report contains information on the Group’s business units, PRISA News, Radio PRISA PRI- SA TV and Santillana in the markets in which it operates.

Argentina. Bolivia. Brazil. Chile. Colombia. Costa Rica. Dominican Republic. Ecuador. El Salvador. Guatemala. Honduras. Mexico. Panama. Paraguay. Peru. Portugal. Puerto Rico. Spain. United Kingdom. Uruguay. USA. Venezuela.

135 Informe de Sostenibilidad 2014 In writing this report we have taken into affected by the Group’s activities. The PRISA’s Board of Directors incor- account: Company should endeavor to satisfy the porates the following new directors: demands and concerns of these groups Claudio Boada Pallerés, John Paton Meetings under the supervision of through the improvement and maintenan- and Roberto Lázaro Alcántara Rojas. the Communications Department to ce of the quality of its products and ser- Meanwhile, Matías Cortés Domin- discuss the most relevant topics. vices. guez, Martin Franklin, Harry Sloan The results of the internal audit on and Nicolas Berggruen left their posts. corporate social responsibility. Timeliness. This current report provides Benchmarking from other compa- continuity to those presented in previous In February 2014 the controlling sha- nies in the sector, both national and years. Worth mentioning is that there has reholder group in Prisa saw its stake international. been an ongoing interchange of informa- in Prisa capital fall below 30%. tion among the different companies of The information and results provided the Group over the course of the year. Santillana sold its general trade book here refer to 2013, although in some imprints to Penguin Random House specific cases, information from pre- Clarity. The report should present in- to focus on education (March 2014). vious years has also been provided, as formation in a way that is understan- this illustrates the Group’s evolution over dable, accessible, and usable by the time. It is to be hoped that this Report will organization’s range of stakeholders. satisfy all its readers and as always, we Information should be presented in a welcome comments and suggestions via manner that is comprehensible to stake- our web page: www.prisa.com. holders who have a reasonable understanding of the organization and its activities. Graphics and consolidated data Guiding principles behind tables can help make the information in the Report the report, such as management and control mechanisms, as well as plans This Report provides reliable and balan- of action and commitments, accessible ced information on PRISA’s endeavors and understandable. to meet the challenges raised by social responsibility. Reliability and transparency. Informa- tion used in the preparation of a report In keeping with the guidelines as set has been reliably and comprehensively out by the Global Reporting InitiativeTM, gathered, recorded, compiled, analy- the contents of this report reflect the fo- zed, and disclosed in order to reflect the llowing principles: real situation of PRISA.

Materiality. The information should cover topics and indicators that reflect Significant changes to size, the organization’s significant economic, structure and ownership environmental, and social impacts, or of the organization during those that would substantively influen- the period covered by the ce the assessments and decisions of Sustainability Report stakeholders. El País advances its global vocation To meet this objective, the relevant data with the launch of a Portuguese-lan- for the Group have been identified and guage edition, El Pais Brasil, and the categorized according to the establis- opening of a newsroom in Sao Paulo. hed thresholds and the risks these pose for each of our companies. PRISA’s Extraordinary Shareholders’ Meeting in December 2013 approved Stakeholder Inclusiveness. Stakehol- the restructuring of the company’s ders are entities or individuals that can financial debt, agreed with all banks reasonably be expected to be significantly and investment funds.

136 Informe de Sostenibilidad 2014 137 Informe de Sostenibilidad 2014 Correlation of indicators with GRI-G3.1guidelines and UN Global Compact

In accordance with the methodologi- cal criteria as laid out in the GRI-G3.1 Guidelines for the preparation of Sus- tainability Reports, we detail in the table below where the Guide’s Performance Indicators correspond with the chapters of the PRISA’s Corporate Responsibili- ty Report. We are self-declaring a “B” Application Level.

Correlation of indicators with GRI-G3.1 Guidelines

GRI (G3) AREA PAGE

1. STRATEGY AND ANALYSIS

1.1 Statement from the most senior decision-maker of the organization on the relevance of sustainability to the organization and its strategy 17

26-27; 1.2 Description of key impacts, risks and opportunities 65-75; 97-131

2. ORGANIzATIONAL PROfILE

15; 2.1 Name of the organization 145

2.2 Primary brands, products, and/or services 28-55

60-65; 2.3 Operational structure of the organization 97-109

2.4 Location of organization’s headquarters 145

2.5 Number of countries where the organization operates 15; 145

2.6 Nature of ownership and legal form 56-58

2.7 Markets served 15; 145

2.8 Scale of the reporting organization 15; 145

2.9 Significant changes during the reporting period in the size, ownership and structure of the organization 7-11; 135

7; 2.10 Awards and honors received during the reporting period 9; 29

138 Informe de Sostenibilidad 2014 3. REPORT PARAMETERS

3.1 Reporting period 135-137

3.2 Date of most recent previous report 135-137

3.3 Reporting cycle of most recent previous report 135-137

3.4 Contact point for questions regarding the report or its contents 145

SCOPE AND BOuNDARy Of REPORt

3.5 Process for defining report content 135-137

3.6 Scope and boundary of the report 135-137

3.7 Specific limitations on the scope or boundary of the report 135-137

Information on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly 135-137; 3.8 affect comparability from period to period and/or between organizations 145

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations 18-55; 3.9 applied to the compilation of the Indicators and other information in the report 135-137

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re- 18-55; 3.10 statement 135-137

18-55; 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report 135-137

GRI CONtENt INDEX

3.12 Table identifying the location of the Standard Disclosures in the report 3; 138-143

ASSuRANCE

3.13 Policy and current practice with regard to seeking external assurance for the report 135

4. GOvERNANCE, COmmITmENTS AND ENGAGEmENT wITh STAkEhOLDERS

4.1 Governance structure of the organization 58-65

58-65; 4.2 Indicate whether the Chair of the highest governance body is also an executive officer IAGC 2013

60-62; 4.3 Number of members of the highest governance body IAGC 2013

65-67; 74-77; 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body 90-96; IAGC 2013

65; 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives IAGC 2013

64; 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided IAGC 2013

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the 58-65; 4.7 organization’s strategy on economic, environmental, and social topics IAGC 2013

58-60; 74-77; Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, 4.8 16-17; and social performance and the status of their implementation 80-85; 97-131

67-77; Procedures of the highest governance body for overseeing the organization’s identification and management of economic, 81-85; 4.9 environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with interna- 111-119; tionally agreed standards, codes of conduct, and principles IAGC 2013

139 Informe de Sostenibilidad 2014 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, 58-73; 4.10 and social performance IAGC 2013

COMMItMENtS tO EXtERNAL INItIAtIVES

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization 16-43

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization 4.12 81-131 subscribes or endorses

72-73; 4.13 Memberships in associations and/or national/international organizations the organization supports 81; 121-131

StAkEhOLDER ENGAGEMENt

65-67; 4.14 List of stakeholder groups engaged by the organization 90-95

65-67; 4.15 Basis for identification and selection of stakeholders with whom to engage 90-95

65-67; 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group 90-95

key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded 65-67; 4.17 to those key topics and concerns, including through its reporting 90-95

MANAGEMENt APPROACh AND COMPLIANCE WIth PERfORMANCE INDICAtORS

ECONOMIC DIMENSION

Individual and Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations consolidated EC1 and other community investments, retained earnings, and payments to capital providers and governments accounts 2013

Individual and consolidated accounts EC2 financial implications and other risks and opportunities for the organization’s activities due to climate change 2013; 21-22; 133-139

Individual and consolidated accounts EC3 Coverage of the organization’s defined benefit plan obligations 2013; 21-22; 125-128; 135-143

Individual and consolidated EC4 Significant financial assistance received from government accounts 2013

MARkEt PRESENCE

EC6 Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation 135-137

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of 51-81; EC7 operation 135-137

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, EC8 51-81 in-kind, or pro bono engagement

140 Informe de Sostenibilidad 2014 ENVIRONMENtAL DIMESIÓN

MAtERIALS

EN1 Materials used by weight or volume 112-119

EN2 Percentage of materials that are recycled input materials 112-119

ENERGY

EN3 Direct energy consumption segmented by primary source 112-119

EN4 Indirect energy consumption by primary source 112-119

WATER

EN8 Total water withdrawal by source 112-119

BIODIVERSITY

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value EN11 NP outside protected areas

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high EN12 112-119 biodiversity value outside protected areas

EMISSIONS, EffLuENtS AND WAStE

EN16 Total direct and indirect greenhouse gas emissions by weight 113-119

EN17 Other relevant indirect greenhouse gas emissions by weight 113-119

EN19 Emissions of ozone-depleting substances by weight 113-119

EN20 NO, SO, and other significant air emissions by type and weight NP

EN21 Total water discharge by quality and destination 113-119

EN22 Total weight of waste by type and disposal method 113-119

EN23 total number and volume of significant spills -

PRODUCTS AND SERVICES

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation 113-119

EN27 Percentage of products sold and their packaging materials that are reclaimed by category 113-119

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws EN28 - and regulations

SOCIAL DIMENSION

LABOR PRACtICES & DECENt WORk

EMPLOyMENt

LA1 total workforce by employment type, employment contract, and region 97-109

141 Informe de Sostenibilidad 2014 LA2 total number and rate of employee turnover by age group, gender, and region 97-109

LABOR/ MANAGEMENt RELAtIONS

LA4 Percentage of employees covered by collective bargaining agreements 97-109

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements 97-109

OCCuPAtIONAL hEALth AND SAfEty

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region 97-109

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, LA8 97-109 or community members regarding serious diseases

tRAINING AND EDuCAtION

LA10 Average hours of training per year per employee, by employee category 97-109

DIVERSIty AND EQuAL OPPORtuNItIES

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group 61; LA13 membership, and other indicators of diversity 97-109

LA14 Ratio of basic salary of men to women by employee category 97-109

huMAN RIGhtS

INVEStMENt AND PROCuREMENt PRACtICES

Percentage and total number of significant investment agreements that include human rights clauses or that have undergone HR1 111-119 human rights screening

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken 111-119

NON-DISCRIMINAtION

HR4 Total number of incidents of discrimination and actions taken 97-109

fREEDOM Of ASSOCIAtION AND COLLECtIVE BARGAINING

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, HR5 - and actions taken to support these rights

ABOLItION Of ChILD LABOR

Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination HR6 - of child labor

PREVENtION Of fORCED AND COMPuLSORy LABOR

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute HR7 - to the elimination of forced or compulsory labor

SOCIETY

COMMuNIty

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on 28-55; SO1 communities, including entering, operating, and exiting 113-119

142 Informe de Sostenibilidad 2014 CORRuPtION

SO2 Percentage and total number of business units analyzed for risks related to corruption 74-76

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures 97-109

SO4 Actions taken in response to incidents of corruption -

PuBLIC POLICy

79-85; SO5 Public policy positions and participation in public policy development and lobbying 97-109

COMPLIANCE

SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations -

PRODuCt RESPONSIBILIty

CuStOMER hEALth AND SAfEty

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage 17; PR1 of significant products and services categories subject to such procedures 92

PRODuCt AND SERVICE LABELLING

total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information PR3 - and labeling, by type of outcomes

MARkEtING COMMuNICAtIONS

74-76; Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, 81-85; PR6 promotion, and sponsorship 121; 131

COMPLIANCE

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products PR9 - and services

143 Informe de Sostenibilidad 2014 Correlation of indicators with United Nations Global Compact

PRINCIPLE AREA page 1. Businesses should support and respect the protec- Evaluation 81 tion of internationally proclaimed human rights Policies 82-85; 88-131

Actions 88-131 Follow up and monitoring of impact 88-131; 135-137 2. Businesses should make sure that they are not Evaluation 97-109; 111-114 complicit in human rights abuses Policies 97-109; 111-114 Actions 97-109; 111-114 Follow up and monitoring of impact 97-109; 111-114 3. Businesses should uphold the freedom of association Evaluation 97-109 and the effective recognition of the right to collective Policies 97-109 bargaining Actions 97-109 Follow up and monitoring of impact 97-109 4. Businesses should support the elimination of all forms Evaluation 97-114 of forced and compulsory labour Policies 97-114 Actions 97-114 Follow up and monitoring of impact 97-114 5. Businesses should support the effective abolition of Evaluation 111-114 child labour Policies 111-114 Actions 111-114 Follow up and monitoring of impact 111-114 6. Businesses should support the elimination of dis- Evaluation 97-109 crimination in respect of employment and occupation Policies 97-109 Actions 97-109 Follow up and monitoring of impact 97-109 7. Businesses are asked to support a precautionary Evaluation 111-121 approach to environmental challenges Policies 111-121 Actions 111-121 Follow up and monitoring of impact 111-121 8. Businesses should undertake initiatives to promote Evaluation 111-121 greater environmental responsibility Policies 111-121 Actions 111-121 Follow up and monitoring of impact 111-121 9. Businesses should encourage the development Evaluation 26-27; 111-119 and diffusion of environmentally friendly technologies Policies 26-27; 111-119 Actions 26-27; 111-119 Follow up and monitoring of impact 26-27; 111-119 10. Businesses should work against corruption in all Evaluation 58-76; 97-119 its forms, including extortion and bribery Policies 58-76; 97-119 Actions 58-76; 97-119 Follow up and monitoring of impact 58-76; 97-119

144 Informe de Sostenibilidad 2014 Contacts with stakeholders

PRISA Promotora de Informaciones, S.A.

www.prisa.com Avda. de los Artesanos, 6 28760 Tres Cantos Madrid (España) Tel: +34 913 301 000 Fax +34 913 301 038 facebook.com/PRISA twitter.com/PRISA plus.google.com/s/prisa linkedin.com/company/prisa instagram.com/grupoprisa

Communications Department

Tel.: +34 913 301 079 / 093 Fax: +34 913 301 038 e-mail: [email protected]

Investor Relations Office

Tel.: +34 913 301 085 Fax: +34 913 301 088 e-mail: [email protected]

Shareholder Relations Office

Tel.: +34 913 301 168 Fax: +34 913 301 070 e-mail: [email protected]

SANTILLANA PRISA Radio Avda. de los Artesanos, 6 Gran Vía, 32 28760 Tres Cantos. Madrid (España) 28013 Madrid (España) Tel: +34 917 449 060 Tel: +91 913 477 700 www.santillana.com www.prisaradio.com

PRISA Noticias PRISA TV Miguel Yuste, 40 Avda. de los Artesanos, 6 28037 Madrid (España) 28760 Tres Cantos. Madrid (España) Tel: +34 913 378 200 Tel: +34 917 367 000 www.prisanoticias.com www.prisatv.com

145 Informe de Sostenibilidad 2014 future is here

www.prisa.com

Avda. de los Artesanos, 6 28760 Tres Cantos Madrid (España)

Tel: +34 913 301 000 Fax: +34 913 301 038

facebook.com/PRISA twitter.com/PRISA plus.google.com/s/prisa linkedin.com/company/prisa instagram.com/grupoprisa