Annual Report 2015 WorldReginfo - d961cf53-0912-4e3f-b8b4-9f8982d97204 MEDIASET S.p.A. - via Paleocapa, 3 - 20121 Milan Share Capital Euros 614,238,333.28 fully paid up Tax Code, VAT number and inscription number in the Milan Enterprises Register: 09032310154 Website: www.mediaset.it WorldReginfo - d961cf53-0912-4e3f-b8b4-9f8982d97204 Table of contents Notice of calling Consolidated Financial Statements 2015 Directors’ report on operations Corporate Boards .................................................................................................................... 1 Financial Highlights .................................................................................................................. 2 Directors’ Report on Operations ............................................................................................. 4 • General economic trends .................................................................................................................... 8 • Development in the legislative framework in the television sector .................................................... 9 • Mediaset shares ................................................................................................................................... 10 • Significant Events and Key Corporate Transaction for the year .......................................................... 12 • The Main Group companies ................................................................................................................ 17 • Group Profile and Performance Review by Business Segment ........................................................... 18 • Consolidated Performance by Geographical Area and Business Segment Economic Results ......................................................................................................................... 49 Balance Sheet and Financial Position ............................................................................................ 57 • Parent Company Performance Economic Results ......................................................................................................................... 60 Balance Sheet and Financial Position ............................................................................................ 62 •Reconciliation between Consolidated and Parent Company Net Profit and Shareholders’ Equity ..... 64 • Disclosure of the Main Risks and Uncertainties to which the Group is exposed ................................ 65 • Human Resources: - Group ....................................................................................................................................... 76 - Parent Company ...................................................................................................................... 83 • The Company’s Commitment to the Environment and Culture ........................................................ 87 • Disclosure Required by article 2428 of the Italian Civil Code ............................................................. 92 • Other Information ............................................................................................................................... 98 • Events after 31 December 2015 ......................................................................................................... 101 • Forecast for the year ........................................................................................................................... 102 Board of Directors Report to the General Meeting of 27 April 2016 ..................................... 103 WorldReginfo - d961cf53-0912-4e3f-b8b4-9f8982d97204 Mediaset Group 2015 Consolidated Annual Report Consolidated Financial Statements • Consolidated Statement of Financial Position ..................................................................................... 108 • Consolidated Statement of Income ..................................................................................................... 110 • Consolidated Statement of Comprehensive Income .......................................................................... 111 • Consolidated Statement of Cash Flows .............................................................................................. 112 • Consolidated Statement of Changes in Shareholders’ Equity ............................................................. 113 • Consolidated Statement of Financial Position and Statement of Income according to Consob Resolution n. 15519 dated 27 July 2006 ................................................................................. 114 Explanatory Notes • General Information ............................................................................................................................ 117 • Basis of Presentation and Accounting Policies for the preparation of the Financial Statements ......... 117 • Summary of the Accounting Standards and Measurement Criteria .................................................... 118 • Key Information relating to the scope of consolidation ...................................................................... 138 • Business Combination ......................................................................................................................... 142 • Segment Reporting .............................................................................................................................. 145 • Notes on main Asset Items ................................................................................................................. 151 • Notes on main Shareholders’ Equity and Liability Items ..................................................................... 167 • Notes on the main Items of the Statement of Income ........................................................................ 179 • Cash Flow Statement .......................................................................................................................... 186 • Disclosures on Financial Instruments and Risk Management Policies ................................................. 187 • Share-based Payments ........................................................................................................................ 201 • Related Party Transactions .................................................................................................................. 204 • Commitments ..................................................................................................................................... 206 • List of Equity Investments included in the Group’s Consolidated Financial Statements at 31December 2015 ............................................................................................................................... 207 Certification on the Consolidated Annual Financial Statements pursuant art- 154 – bis of Legislative Decree 58/98 ................................................................ 209 Indipendent Auditors’ Report.................................................................................................. 213 WorldReginfo - d961cf53-0912-4e3f-b8b4-9f8982d97204 Mediaset S.p.A. 2015 Annual Report Financial Statements Statement of Financial Position ........................................................................................................... 219 Statement of Income ........................................................................................................................... 221 Statement of Coprehensive Income ................................................................................................... 222 Statement of Cash Flows .................................................................................................................... 223 Statement of Changes in Shareholders’ Equity ................................................................................... 224 Statement of Financial Position according to Consob resolution n. 15519 of 27 July 2006 .................................................................. 225 Statement of Income according to Consob resolution n. 15519 of 27 July 2006 .................................................................. 227 Explanatory Notes General Information ............................................................................................................................ 229 Adoption of International Accounting Standards ................................................................................ 229 Basis of presentation, accounting policies for the preparation of the financial statements and measurement criteria ........................................ 229 Other Information ............................................................................................................................... 241 Notes on main Asset Items ................................................................................................................. 248 Notes on main Shareholders’ Equity and Liability Items ..................................................................... 257 Notes on the main Items of the Statement of Income........................................................................ 271 Investment Commitments and Guarantees ........................................................................................ 280 Disclosures on Financial Instruments and Risk Management Policies ................................................. 281 Attachments .......................................................................................................................................