Half-year Report at June 30, 2015 This is English translation of the Italian Half-year report, which 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 Group structure of RCS MediaGroup .......................................................................................................................................................... 5 Brief description of the Group ..................................................................................................................................................................... 6 Consolidated financial highlights of RCS MediaGroup .............................................................................................................................. 8 Report on operations ................................................................................................................................................................................ 9 Group performance in the second quarter .................................................................................................................................................. 10 Group performance in the first half of the year ......................................................................................................................................... 14 Other Information ...................................................................................................................................................................................... 22 Operating segment performance ........................................................................................................................................................... 23 Media Italy ........................................................................................................................................................................................... 24 Media Spain .......................................................................................................................................................................................... 30 Books .................................................................................................................................................................................................... 33 Advertising and Events ......................................................................................................................................................................... 37 Corporate Functions and Other Activities ............................................................................................................................................ 40 Related party transactions .......................................................................................................................................................................... 43 Significant events during the first half of the year ..................................................................................................................................... 43 Events after the reporting period ............................................................................................................................................................... 46 Outlook 2015 ............................................................................................................................................................................................. 47 Additional information required by CONSOB pursuant to Art. 114, paragraph 5 of Italian Legislative Decree no. 58/1998 of May 27, 2013 ........................................................................................................................................................................................................... 48 Condensed interim consolidated financial statements .......................................................................................................................... 54 Consolidated financial statements .......................................................................................................................................................... 55 Condensed income statement ................................................................................................................................................................ 56 Condensed statement of comprehensive income .................................................................................................................................. 57 Condensed statement of financial position ........................................................................................................................................... 58 Condensed statement of cash flows ...................................................................................................................................................... 59 Condensed statement of changes in equity ........................................................................................................................................... 60 Notes to the condensed interim consolidated financial statements ...................................................................................................... 63 Format, content and other information on the condensed interim consolidated financial statement items ................................................ 64 Annexes .................................................................................................................................................................................................. 105 List of group equity investments at June 30, 2015 .............................................................................................................................. 106 Exchange rates against the euro ........................................................................................................................................................... 111 Related parties ....................................................................................................................................................................................... 113 2 CORPORATE OFFICERS Honorary Chairman Cesare Romiti Board of Directors (^) Maurizio Costa Chairman Pietro Scott Iovane (°) Chief Executive Officer Gerardo Braggiotti Director Laura Cioli Director Paolo Colonna Director Teresa Cremisi Director Dario Frigerio Director Tom Mockridge Director Stefano Simontacchi Director (^) The Board of Directors in office at the date of approval of this Report. The Directors are in office for the years 2015-2016-2017 and therefore until the Shareholders’ Meeting called to approve the 2017 financial statements. (°) Also holds the office of Chief Operating Officer. 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 delegated in particular all the powers to the Chief Executive Officer and Chief Operating 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. Board of Statutory Auditors (^) Lorenzo Caprio Chairman Gabriella Chersicla Standing auditor Enrico Colombo Standing auditor Barbara Negri Alternate auditor Renata Maria Ricotti Alternate auditor Ugo Rock Alternate auditor (^) The Board of Statutory Auditors in office as 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. Independent auditors (^) KPMG S.p.A. (^) In office until the Shareholders’ Meeting called to approve the 2017 financial statements. 3 GROUP STRUCTURE OF RCS MEDIAGROUP 4 GROUP STRUCTURE OF RCS MEDIAGROUP Media Italy Media Sp ain Books Advertising and Events Corporate Functions and Other Activ ities 5 BRIEF DESCRIPTION OF THE GROUP RCS MediaGroup is one of the leading multi-media publishing groups at international level. The Group is active in various publishing sectors, from newspapers to magazines, books to TV, radio to new media, as well as being among the primary operators on the advertising sales and distribution market. In a global context characterised by a deep change in communication mediums, media is increasingly important for the development of civil society and its individuals. RCS MediaGroup is a leading player in the evolution process of the publishing sector, fortified by the founding values and principles which inspire it and the acknowledged influence which characterises its contents, brands and authors. In particular, the RCS Group is leader in newspaper publishing in Italy and Spain. In Italy, the RCS Group publishes Corriere della Sera and La Gazzetta dello Sport, leaders among national and sport dailies, in addition to numerous weekly and monthly magazines, including Amica, Living, Style Magazine, Dove, Oggi, Io Donna, Sportweek, Sette and Abitare. In Spain, the Group