2008 Annual Report WorldReginfo - 38f7aa35-aa25-47d0-950c-cf8fccafb961 WorldReginfo - 38f7aa35-aa25-47d0-950c-cf8fccafb961 WorldReginfo - 38f7aa35-aa25-47d0-950c-cf8fccafb961 Table of contents Notice of convocation Mediaset Group - Consolidated Financial Statements as at 31st December 2008 Corporate Boards ....................................................................................................................................... 1 Financial highlights.................................................................................................................................... 3 Directors’ Report on Operations............................................................................................................... 5 • The general economic situation ................................................................................................................. 9 • Development of the regulatory framework in the television industry.......................................................... 11 • Mediaset on the stock market .................................................................................................................... 13 • Main corporate operations and equity investments.................................................................................... 17 • The main companies of the Group............................................................................................................. 19 • Evolution of operations by segment of activity ........................................................................................... 20 • Analysis of results by geographical areas and areas of operation Economic results................................................................................................................................ 50 Balance sheet and financial position ................................................................................................. 60 • Table of reconcilement between the Group’s consolidated Shareholders’ equity and the parent company Shareholders’ equity................................................................................................................................... 63 • Information regarding risks and uncertainties to which the Group is exposed .......................................... 64 • Human resources ....................................................................................................................................... 75 • Environment and the company’s commitment to culture ........................................................................... 83 • Subsequent events after 31 December 2007............................................................................................. 87 • Forseeable developments .......................................................................................................................... 88 Consolidated Financial Statements • Consolidated balance sheet....................................................................................................................... 90 • Consolidated income statement................................................................................................................. 92 • Consolidated cash flow statement.............................................................................................................. 93 • Movements in consolidated Shareholders’ equity...................................................................................... 94 • Consolidated balance sheet and income statement according to Consob decision n. 15519 dated 27 July 2006 .......................................................................................... 95 Notes • General information.................................................................................................................................... 98 • General drafting criteria and accounting standards for the preparation of the financial statements.......... 98 • Summary of significant accounting policies and valuation criteria............................................................. 98 • Main company operations and changes in the consolidation area during the year ................................... 114 • Segment report........................................................................................................................................... 116 • Comments on the main assets items ......................................................................................................... 121 • Comments on the main Shareholders’ equity and liabilities items............................................................. 138 • Comments on the main income statement items....................................................................................... 148 • Additional disclosures about financial instruments and risk management policies.................................... 154 • Business combinations............................................................................................................................... 167 • Share-based payments .............................................................................................................................. 168 • Transactions with related parties................................................................................................................ 172 • Other information........................................................................................................................................ 173 • List of equity investments included in the Group’s consolidated financial statements as at 31 December 2008 ............................................................................................................................ 175 WorldReginfo - 38f7aa35-aa25-47d0-950c-cf8fccafb961 Statement concerning the Group’s Consolidated Financial Statements in Compliance with Art. 154-bis of Italian Law Decree 58/98 ................................................................. 177 Report of the External Auditors ................................................................................................................ 181 Mediaset S.p.A. - Financial Statements as at 31st December 2008 Directors’ Report on Operations............................................................................................................... 185 • Information on the ownership structure (art. 123-bis of the consolidated finance act) ..........................190 • Report on operations..............................................................................................................................194 • Main corporate transactions...................................................................................................................197 • Information on the main risks and uncertainties ....................................................................................198 • Human resources...................................................................................................................................198 • Other information pursuant to art. 2428 of the Italian civil code ...........................................................201 • Additional information ............................................................................................................................209 • Director’s report to the shareholders’ general meeting.........................................................................211 • Annex: annual report of the Board of Directors on Corporate Governance..........................................225 Financial Statements.................................................................................................................................. 291 • Balance sheet.........................................................................................................................................292 • Income statement...................................................................................................................................294 • Cash flow statement...............................................................................................................................295 • Statement of changes in shareholders’ equity .......................................................................................296 • Balance sheet pursuant to CONSOB Decision no. 15519 dated July 27th, 2006 .................................297 • Income statement pursuant to CONSOB Decision no. 15519 dated July 27th, 2006 ...........................299 Explanatory notes....................................................................................................................................... 301 • General information................................................................................................................................301 • Adoption of the international accounting principles................................................................................301 • Summary of accounting standards and valuation criteria ......................................................................302 • Other information....................................................................................................................................313 • Comments on the main asset items.......................................................................................................317 • Comments on the main shareholders’ equity and liability items ............................................................327