Mediaset Group

Index 3.4 Data protection and privacy ................................................................... 54 3.5 Relations with the public administration ............................................ 57 Letter to Stakeholders .............................................................................1 4 ▪ Effectiveness and sustainability of the broadcasting and Note on methodology ............................................................................ 7 commercial offering ............................................................................. 63 1 ▪ The Mediaset Group ........................................................................ 13 4.1 Quality of the product and service ............................................... 65 1.1 Profile and activity ................................................................................ 15 4.2 Responsible advertising and marketing ..................................... 77 1.2 History ........................................................................................................ 18 4.3 Protection of minors........................................................................... 80 1.3 The values of the Mediaset Group ................................................ 23 4.4 Protection of intellectual property................................................84 1.4 The Mediaset Group, its business context and sustainability 4.5 Audience interaction and Customer satisfaction ................... 86 25 5 ▪ People ............................................................................................... 91 2 ▪ Economic performance and investor relations ......................... 33 5.1 People in the Mediaset Group ......................................................... 93 2.1 Summary of financial data ................................................................ 35 5.2 Diversity and equal opportunities ................................................. 95 2.2 Distribution of economic value generated ................................ 36 5.3 People management, attraction and development ............... 96 2.3 Relations with investors ............................................................................ 38 5.4 Welfare and well-being .................................................................... 103 3 ▪ Ethics, integrity and transparency in business activities ........ 41 5.5 Industrial relations .............................................................................. 107 3.1 Corporate governance ....................................................................... 43 5.6 Health and safety of workers......................................................... 108 3.2 Ethics and integrity in business ...................................................... 45 6 ▪ Community and Territory ............................................................. 113 3.3 The internal control and risk management system ............... 50 6.1 Responsible management of the supply chain ....................... 115 6.2 The social impact of the Group ..................................................... 125 6.3 Social utility initiatives....................................................................... 127 7 ▪ Environment .................................................................................... 131 7.1 Commitment to environmental protection .............................. 133 7.2 Management of electromagnetic emissions ............................ 133 7.3 Waste management ........................................................................... 136 7.4 Management of energy consumption and emissions .......... 138 GRI Content Index ................................................................................ 141 Report of the Indipendent Audit Firm.............................................. 151 Letter to Stakeholders ber of viewers and hours of original prod- Dear stakeholder, ucts. At the same time as the World Cup, the new this introduction to the Non-Financial Mediaset Play online platform was launched: Statement gives us the chance to notify and all Mediaset TV contents can now be ac- In particular, it was involved in numerous share with you the many activities that the cessed on the web from a single platform, developments, while maintaining a steady Group has been involved in and committed where users can view programmes live and focus on sustainability. .to over the last year. on demand, from TV screens, PCs or mobile devices. This new service is free, and aims to offer entertainment and knowledge for all As could easily be predicted, 2018 was a Mediaset successfully managed on an exclu- Italians. complex year. The main financial indicators, sive basis the media event of the year in particularly in Italy, gradually deteriorated, June and July - the 2018 World Cup in Rus- setting off an unprecedented volatility on sia. For the first time ever in Italy, all match- Mediaset contents are therefore gaining financial markets and hampering expecta- es were broadcast live and on free-to-view ground on all free and pay-to-view plat- tions of a recovery in consumption and ad- TV, as well as on the web and mobile devic- forms: digital terrestrial TV, satellite and vertising investments. es. online streaming. This continual expansion has led to two major results: on the one The event was widely acclaimed by viewers, hand the public have the chance to view critics and industry operators alike, reward- Mediaset channels on any device, and on the In this scenario, Mediaset still had the ability ing the hard work of our journalists, opera- other hand the strength, quality and value of to pursue the objectives set in keeping with tors, technicians and studio operators. Mediaset schedules and contents have been guidelines notified to the financial market in Overall viewing figures amounted to around consolidated. early 2017 with considerable determination. 297 million TV viewers (49 million more compared to the previous World Cup when As regards the central nature of contents Italy matches were also aired), plus 35 mil- and their distribution, Mediaset's efforts to lion web and smartphone views and around In 2018, Mediaset first and foremost consoli- safeguard intellectual property in Italy over 20 million unique users of Mediaset digital dated its central position as a cross/media the years has been vitally important. We content on the official Mediaset Mondiali publisher in Italy and Spain, as well as its have been pleased with recent rulings, leadership position in Europe for the num- FIFA 2018 app. 3 2018 Sustainability Report – Mediaset Group – Letter to Stakeholders which finally implement consolidated Euro- additional social responsibility related to ra- has gained a status as independent opera- pean case law on the infringement of copy- dio broadcasting and its social function. tor, which will allow it to be more easily in- right in Italy, backing up our claims pending volved in the consolidation process already final approval of the Europeaen Directive on underway at national and international level. copyright in the digital single market. A focus on the social function of communi- cation was confirmed in a thoroughly inno- vative way by our advertising sales compa- The year has therefore been important and In the summer,Mediaset's television news ny Publitalia ’80, that hosted "Digital Next" essential, marked by the work and expertise and information services were fully involved for the first time ever in Italy, in 2018. This of our human capital: thousands of people, in covering the collapse of the Morandi annual, international congress is organised motivated by advanced working conditions Bridge in Genoa. Besides 24-hour coverage by EGTA, the association of advertising represent a competitive asset for us, which of the event, extraordinary news editions sales entities of leading radio and TV broad- we will continue to invest in. and in-depth programmes, the Company casters in Europe. The event underlined the decided to suspend commercials for the en- recognition of our advertising sales compa- tire day when the funerals of the victims ny, that was the first in Italy to develop and Similarly, we will continue to invest in the were held on 18 August. This was an ex- launch "advanced" advertising solutions for social dimension through Mediafriends. In tremely significant gesture for a commercial free-to-view TV reaching out to the entire 2018, we supported the immense work of television whose only revenues are from ad- population. many people, organising solidarity initiatives vertising, with a considerable change in including "Fabbrica del Sorriso" with its schedules to alert the public immediately to fundraising initiatives for children, as well as the meaning of the day. In keeping with Mediaset's goal of consoli- fundraising campaigns on TV to help chil- dating its focus on the core business of free dren and those in financial need. The radio sector was consolidated. In just TV, we have finalised a major operation en- over three years, the first national group of abling us to monetise the value created on broadcasters, RadioMediaset, has been set an industrial level through EI Towers, with- up, creating - through careful editorial and In brief: Today, Mediaset has an even more out foregoing a key presence in the strate- business actions, culminating in 2018 with robust financial position and is a market gic sector of TV transmission towers. The the acquisition of Radio Monte Carlo - an ef- leader. It is a company that looks towards company,

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