Financials Rai 2015 Reports and financials 2015 December 31 at as Financials Rai 2015 Reports and financials as at 31 December 2015 2015. A year with Rai. with A year 2015. Reports and financials as at 31 December 2015 Table of Contents Introduction 5 Rai Separate Financial Statements as at 31 December 2015 13 Consolidated Financial Statements as at 31 December 2015 207 Corporate Directory 314 Rai Financial Consolidated Financial Introduction Statements Statements 5 Introduction Corporate Bodies 6 Organisational Structure 7 Letter to Shareholders from the Chairman of the Board of Directors 8 Rai Financial Consolidated Financial Introduction 6 Statements Statements Corporate Bodies Board of Directors until 4 August 2015 from 5 August 2015 Chairman Anna Maria Tarantola Monica Maggioni Directors Gherardo Colombo Rita Borioni Rodolfo de Laurentiis Arturo Diaconale Antonio Pilati Marco Fortis Marco Pinto Carlo Freccero Guglielmo Rositani Guelfo Guelfi Benedetta Tobagi Giancarlo Mazzuca Antonio Verro Paolo Messa Franco Siddi Secretary Nicola Claudio Board of Statutory Auditors Chairman Carlo Cesare Gatto Statutory Auditors Domenico Mastroianni Maria Giovanna Basile Alternate Statutory Pietro Floriddia Auditors Marina Protopapa General Manager until 5 August 2015 from 6 August 2015 Luigi Gubitosi Antonio Campo Dall’Orto Independent Auditor PricewaterhouseCoopers Rai Financial Consolidated Financial Introduction Statements Statements 7 Organisational Structure (chart) Board of Directors Chairman of the Board of Directors Internal Supervisory Auditing Board General Manager Legal (1) Affairs CFO Human Resources and CTO (2) Communication, Legal News Editorial Chief Other Corporate Public, Organisation Director (4) and Support Institutional and Security Functions International Officer (5) Relations Editorial Area and News • General interest TV channels • Semi-general interest TV channels • Themed TV channels • News • Rai Fiction • Rai World • Radio - Channels - Public Service channels - News • Digital Terrestrial Rai Cinema SpA Commercial and Advertising Area Rai Com SpA Rai Pubblicità SpA Broadcasting Rai Way SpA (3) (1) Finance, Management Planning and Budgeting, Administration, Tax, Real Estate Assets and Services, Licence Fee functions report to the Chief Financial Officer. (2) TV Production, Quality and Planning, Research and Technological Innovation Centre, Frequency Planning and Spectrum Management, Satellite Structure, ICT functions report to the Chief Technology Officer. (3) Listed since 19 November 2014. Although this Company is managed and coordinated by Rai, it operates autonomously, generating revenues from its clients and using its own expertise, technologies, human and financial resources. (4) The News programmes report on their operations to the News Editorial Director. (5) The Security & Safety Department reports to the Chief Security Officer. Rai Financial Consolidated Financial Introduction 8 Statements Statements Letter to Shareholders from the Chairman of the Board of Directors Dear Shareholders, In a fast-evolving media environment that is into a digital media company at the top of the experiencing profound changes day by day, game and in tune with the country in a phase of the year just ended posed a further challenge constantly increasing evolution. to our organisation on its path to future growth. This commitment was and is of great importance In parallel with a gradual adoption of the most to Rai in that it provides a Public Service that is advanced practices applied in the financial sector fundamental to democracy in our country, working - following the listing of a portion of Ray Way to develop in an increasingly competitive and shares on the Italian Stock Exchange - Rai has complex environment. successfully launched its first bond issue of Euro 350 million reserved for institutional investors, In 2015 the legislator focused its attention on Rai motivated by the need to strengthen its medium/ and enacted significantly advanced measures, long-term sources of financing. which covered key issues to a Public Service company, such as the corporate governance 2015 was also a year of success in publishing, reform and a new licence fee collection system. awards and major achievements and, at the same time, the time framework to conceive projects and Firstly, the new governance structure and clear events that were started in the first half of 2016 commitments to transparency respond to the need and that will continue in the coming years. for making our Company more efficient and able to take informed decisions promptly and in In our vision Rai is to become a place where keeping with the times. people can virtually gather, in hard and often confusing times, a reliable and safe place where Secondly, the purpose of a more streamlined to discover insights and stories focused on the method of collecting licence fees for private use development of their country, working together for as part of the electricity bills is to make a decisive common good and the protection of rights. contribution to the fight against evasion which has We pursue quality while narrating and trying been a historical feature of this tax, while helping to explain an increasingly complex and mobile to reduce the unit amount. world in an attractive, accurate and multi-faceted manner peculiar to trusted broadcasters. The other two key drivers behind the transformation of our Company in the coming Rai must also be the voice of our country all decades are the renewal of the term of the over the world, to convey our vision, to help concession whereby Rai will be assigned the us to regain trust and assert our place on the role of multimedia operator of the Public Service international scene, without disregarding local and the new Service Contract, which for the first needs and priorities. time shall be extended to five years and shall be signed subject to a resolution of the Council of We are committed to raising awareness of Ministers. citizenship and offering the best of our knowledge wealth to all of you, both to the citizens that A strongly-defined mission that embraces a far- have been following Rai for decades and to the reaching vision of our country and of the vital younger audience in order to stay in tune and contribution that Rai may make to its growth on an connected with the Millennial Generation. ongoing basis, is our drive to continue to operate as the Public Service concession holder in the In an age of increasing media fragmentation future. and in the midst of profound changes in the way audiovisual contents are consumed, there are two While pending the adoption of the new key challenges to be addressed in the immediate guidelines governing the renewal of the future: to win the trust of those who already concession term, some key milestones have been predominantly use the Internet and mobile devices established which are required for the long-term and to not forget those who are comfortable with development of the process that will transform Rai more traditional media. Rai Financial Consolidated Financial Introduction Statements Statements 9 Letter to Shareholders from the Chairman of the Board of Directors To do this we shall build on the appeal of new We are on the path to offering inclusive methods of consumption, developing non- innovation, a key to the objectivity and freedom linear content and bringing it into tune with our of information, as well as to increasing digital scheduled programming. Our objective will then literacy in our country, developing the audiovisual be to allow the public to get in touch with the industry, stimulating creativity and talented skills in Multimedia Television Service concession holder all sectors: in a word, enhancing the civil, social through a strategy based on the integration of and economic growth of our society. all publishing activities and the development of highly versatile and easy-to-use digital products of Apart from the indispensable prerequisites in new generation. terms of operations, organisational efficiency and a socially-responsible economic and financial This means putting content and its distinguishing management of Rai, our priorities will be freedom features first, through innovative formats and of creativity, a universal audience, and definitely narrative language and models capable of to continue to earn your trust and confidence. generating quality content, regardless of how they are distributed. More generally, Rai must enable everyone – from citizens to market players – to perceive and live the Public Service concession holder as a partner, thanks to a system-based approach suitable to the major role it plays. Rai Financial Consolidated Financial Introduction 10 Statements Statements Review of Rai SpA results and financial Income Statement position (in millions of Euros) FY 2015 FY 2014 Change External revenues 2,335.3 2,349.7 (14.4) External costs (1,363.4) (1,415.2) 51.8 Personnel costs (888.3) (913.8) 25.5 EBITDA 83.6 20.7 62.9 Result before tax (101.4) (252.6) 151.2 Result for the year (46.0) (203.5) 157. 5 Balance Sheet (in millions of Euros) 31.12.2015 31.12.2014 Change Equity 811.8 828.4 (16.6) Net financial debt (liquidity) 349.5 228.1 121.4 1,161.3 1,056.5 104.8 Investments (in millions of Euros) FY 2015 FY 2014 Change Investments in programmes 220.3 16 7. 6 52.7 Technical investments 69.6 72.5 (2.9) Total investments 289.9 240.1 49.8 Personnel (in units) 31.12.2015 31.12.2014 Change Personnel on permanent and fixed contracts 11,82 5 11,8 6 8 (43) of which fixed contracts 771 1,114 (343) Rai Financial Consolidated Financial Introduction Statements Statements 11 Rai Group Consolidated Income Statement (in millions of Euros) FY 2015 FY 2014 Change External revenues 2,493.1 2,489.2 3.9 External costs (989.1) (1,072.1) 83.0 Personnel costs (976.5) (1,0 01.1) 24.6 EBITDA 5 2 7. 5 416.0 111. 5 Result before tax (29.7) (183.6) 153.9 Result for the year (25.6) (175.8) 150.2 Consolidated Balance Sheet (in millions of Euros) 31.12.2015 31.12.2014 Change Equity 492.8 499.8 ( 7.