WorldReginfo - cc8b9ce0-5c88-4fc3-a701-b74e08b1c399 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 - cc8b9ce0-5c88-4fc3-a701-b74e08b1c399 Contents Notice of call Consolidated Financial Statements 2010 Director’s report on operations Corporate Bodies ............................................................................................................................................. 1 Financial Highlights .......................................................................................................................................... 2 Directors’ Report on Operations .................................................................................................................... 4 • The general economic situation ................................................................................................................................ 8 • Development of the regulatory framework in the television industry ..................................................................... 10 • Mediaset shares on the stock market........................................................................................................................ 11 • Main corporate operations and equity investments .................................................................................................. 14 • The Main Group companies ...................................................................................................................................... 18 • Evolution of operations by sector of activity ............................................................................................................. 19 • Analysis of consolidated results by geographic and operating area Financialc Results ............................................................................................................................................... 52 Balance Sheet and Financial Position................................................................................................................... 63 Analysis of results of the parent company Financialc Results ............................................................................................................................................... 67 Balance Sheet and Financial Position................................................................................................................... 69 • Reconciliation between consolidated and parent company net profit and shareholders’ equity .............................. 72 • Information regarding the main risks and uncertainties to which the Group is exposed .......................................... 73 • Human Resources: - Group ............................................................................................................................................................ 84 - Mediaset S.p.A. .............................................................................................................................................. 92 • The company’s commitment to the environment and culture.................................................................................. 96 • Report on corporate governance and ownership ..................................................................................................... 101 • Shares held by directors, statutory auditors, general managers and executives with strategic responsibilities ........ 153 • Information required by article 2428 of the Italian Civil Code.................................................................................. 154 • Other information .................................................................................................................................................... 156 • Events subsequent to 31 December 2010 ................................................................................................................ 159 • Foreseeable developments........................................................................................................................................ 160 • Board of Directors’ Report to the Shareholders’ Meeting ........................................................................................ 161 WorldReginfo - cc8b9ce0-5c88-4fc3-a701-b74e08b1c399 Mediaset Group 2010 Annual Report Consolidated Financial Statements • Consolidated statement of financial position............................................................................................................. 185 • Consolidated statement of income............................................................................................................................ 187 • Consolidated statement of comprehensive income .................................................................................................. 188 • Consolidated statement of cash flows....................................................................................................................... 189 • Consolidated statement of changes in equity............................................................................................................ 190 •Consolidated statement of financial position and income according to Consob resolution no. 15519 dated 27 July 2006...................................................................................................... 191 Explanatory notes • General information .................................................................................................................................................. 194 • General drafting criteria and accounting standards for the drafting of the financial statements................................ 194 • Summary of the accounting standards and valuation criteria .................................................................................... 195 • Main company operations and changes in the consolidation area............................................................................. 213 • Business combination ................................................................................................................................................ 214 • Segment report ........................................................................................................................................................ 216 • Notes on main assets items....................................................................................................................................... 222 • Notes on main liabilities items................................................................................................................................... 239 • Notes on main income statement items ................................................................................................................... 251 • Notes on main cash flow statement items ................................................................................................................ 258 • Additional disclosures on financial instruments and risk management policies ......................................................... 259 • Share-based payments............................................................................................................................................... 273 • Related party transactions ......................................................................................................................................... 276 • Commitments............................................................................................................................................................ 278 • Potential liabilities ...................................................................................................................................................... 279 • List of equity investments included in the consolidated financial statement as at 31 December 2010 ..................... 281 Attestation of the Group’s Financial Statements in conformity with article 154, part two, of Legislative Decree 58/98 ..........................................................283 Indipendent Auditors’ Report .........................................................................................................................287 WorldReginfo - cc8b9ce0-5c88-4fc3-a701-b74e08b1c399 Mediaset S.p.A. 2010 Annual Report Financial statements Statement of financial position as of 31 December 2010....................................................................................... 292 Statement of income as of 31 December 2010 ..................................................................................................... 294 Statement of comprehensive income as of 31 December 2010 ............................................................................ 295 Statement of cash flows as of 31 December 2010................................................................................................. 296 Statement of changes in equity as of 31 December 2010 and 31 December 2009............................................... 297 Statement of financial position as per the Consob resolution n° 15519 of 27th July 2006 ...................................................................................................................................... 298 Statement of income Statement as per the Consob resolution n° 15519 of 27th July 2006 .....................................................................................................................................