Half-year Report at June 30, 2017 This is English translation of the Italian Half-year report. The Italian Half-year report is the sole authoritative version. RCS MediaGroup S.p.A. Via A. Rizzoli, 8 – 20132 Milan Share Capital €475,134,602.10 - Company Register and Tax Code/VAT No. 12086540155, REA No. 1524326 Contents Corporate Officers ....................................................................................................................................................................................... 3 Brief description of the Group ..................................................................................................................................................................... 4 Financial highlights of RCS MediaGroup ................................................................................................................................................... 5 Report on operations ................................................................................................................................................................................. 6 Group performance in the first half of the year ........................................................................................................................................... 7 Information on ongoing disputes ............................................................................................................................................................... 14 Other Information ...................................................................................................................................................................................... 14 Operating segment performance ............................................................................................................................................................ 15 Newspapers Italy .................................................................................................................................................................................. 16 Magazines Italy .................................................................................................................................................................................... 19 Advertising and Sport ........................................................................................................................................................................... 22 Unidad Editorial ................................................................................................................................................................................... 24 Other Corporate activities ..................................................................................................................................................................... 27 Related party transactions .......................................................................................................................................................................... 28 Significant events during the first half of the year ..................................................................................................................................... 28 Events after the reporting date ................................................................................................................................................................... 28 Outlook for the current year ...................................................................................................................................................................... 29 Additional information required by CONSOB pursuant to Art. 114, paragraph 5 of Italian Legislative Decree no. 58/1998 of May 27, 2013 ............................................................................................................................................................................................. 30 Condensed interim consolidated financial statements .......................................................................................................................... 35 Consolidated financial statements .......................................................................................................................................................... 36 Income statement ................................................................................................................................................................................. 37 Statement of comprehensive income ................................................................................................................................................... 38 Statement of financial position ............................................................................................................................................................ 39 Statement of cash flows (*) ................................................................................................................................................................. 40 Statement of changes in equity ............................................................................................................................................................ 41 Notes to the condensed interim consolidated financial statements ...................................................................................................... 44 Format, content and other information on the condensed interim consolidated financial statements ........................................................ 45 Annexes .................................................................................................................................................................................................... 72 List of the group’s equity investments at June 30, 2017 ....................................................................................................................... 73 Exchange rates against the euro ............................................................................................................................................................. 76 Related parties ......................................................................................................................................................................................... 78 2 CORPORATE OFFICERS Honorary Chairman Cesare Romiti Board of Directors (*) Urbano Roberto Cairo Chairman and Chief Executive Officer Marilù Capparelli Director Carlo Cimbri Director Alessandra Dalmonte Director Diego Della Valle Director Veronica Gava Director Gaetano Micciche' Director Stefania Petruccioli Director Marco Pompignoli (**) Director Stefano Simontacchi Director Marco Tronchetti Provera Director (*) The Board of Directors in office at the date of approval of this Report was appointed by resolution of the shareholders’ meeting on September 26, 2016. The Directors are in office for the years 2016-2017-2018 and therefore until the Shareholders’ Meeting called to approve the 2018 financial statements. (**) Director with delegated powers Powers delegated by the Board of Directors Without prejudice to internal observance of the functions and rules of corporate governance adopted, the Board of Directors has granted all the powers to the Chairman and Chief Executive Officer for the conduct of the Company's ordinary administration, as well as a set of powers for the Company’s management, with limits on the size of financial commitments and/or risks that may be assumed for certain types of transactions. The Board of Directors also assigned Director Marco Pompignoli the role of overseeing and supervising the administration, finance and management control, legal and corporate affairs, procurement and information systems functions of the RCS Group, in coordination with and in support of the Chairman of the Board of Directors and Chief Executive Officer, granting him within the scope of these functions a series of powers with limits on the financial commitments and/or risks that may be assumed for certain types of transactions. Director Marco Pompignoli was also designated by the Board of Directors as Director responsible for the internal control and risk management system. Board of Statutory Auditors (*) Lorenzo Caprio Chairman Gabriella Chersicla Standing auditor Enrico Colombo Standing auditor Guido Croci (**) Alternate auditor Renata Maria Ricotti Alternate auditor Paola Tagliavini (**) Alternate auditor (*) The Board of Statutory Auditors in office at the date of approval of this Report. The Statutory Auditors are in office for the years 2015-2016-2017 and therefore until the Shareholders’ Meeting called to approve the financial statements relating to the last of these years. (**) The Alternate auditors Guido Croci and Paola Tagliavini were appointed by means of resolution of the ordinary shareholders’ meeting held on April 27, 2017, replacing the Alternate auditors Barbara Negri and Ugo Rock who resigned on February 9, 2017. Independent auditors (*) KPMG S.p.A. (*) In office until the Shareholders’ Meeting called to approve the 2017 financial statements. 3 BRIEF DESCRIPTION OF THE GROUP RCS MediaGroup is one of the main European publishing groups. It is a leader in newspapers in Italy and Spain and active in magazines, television, radio and new media, one of the top operators in the advertising sales market and is also active in distribution. It is a reference in sport business through the production