Mediaset Group Report on corporate governance and ownership structure The report, written pursuant to Article 123-bis of the TUF [Consolidated Law on Finance] is made available at the registered office, published in the Company's website, and available on the authorised storage mechanism eMarket Storage (www.emarketstorage.com) in accordance with the methods and terms required by the regulations in effect. Issuer: Mediaset S.p.A.. Website: www.mediaset.it Financial year to which the report refers: ending on 31 December 2018 Date of approval of the report: 12 March 2019 Contents GLOSSARY ........................................................................................................................................................................................................................................................... 3 1. PROFILE OF THE ISSUER ................................................................................................................................................................................................................................ 4 2. INFORMATION ON OWNERSHIP STRUCTURE AS OF 12 MARCH 2019 .................................................................................................................................................... 6 Structure of share capital ........................................................................................................................................................................... 6 American Depositary Receipts programme ................................................................................................................................................... 6 Restrictions on the transfer of securities ...................................................................................................................................................... 7 Significant equity investments in share capital .............................................................................................................................................. 7 Employee shareholdings: mechanism for exercising voting rights .................................................................................................................... 7 Restrictions on the right to vote .................................................................................................................................................................. 7 Agreements between shareholders.............................................................................................................................................................. 7 Change of control clauses and provisions of Company Bylaws regarding Public Purchase Offers ......................................................................... 7 Legislation and regulations applicable to the appointment and replacement of Directors and changes to the Company Bylaws ............................... 8 Powers to increase share capital and authorisation to purchase treasury shares ............................................................................................... 8 Management and coordination activities (pursuant to Article 2497 et seq. of the Italian Civil Code...................................................................... 9 3. COMPLIANCE ................................................................................................................................................................................................................................................. 9 4. BOARD OF DIRECTORS ................................................................................................................................................................................................................................. 9 4.1 APPOINTMENT AND REPLACEMENT ............................................................................................................................................................ 9 4.2 COMPOSITION ........................................................................................................................................................................................ 10 4.3. THE ROLE OF THE BOARD OF DIRECTORS ................................................................................................................................................. 13 4.4 DELEGATED BODIES ................................................................................................................................................................................ 16 4.5. OTHER EXECUTIVE DIRECTORS ............................................................................................................................................................... 18 4.6. INDEPENDENT DIRECTORS ...................................................................................................................................................................... 18 4.7 LEAD INDEPENDENT DIRECTOR ................................................................................................................................................................ 19 5. THE PROCESSING OF COMPANY INFORMATION .................................................................................................................................................................................... 19 6. BOARD COMMITTEES .................................................................................................................................................................................................................................. 21 7. GOVERNANCE AND APPOINTMENTS COMMITTEE ................................................................................................................................................................................ 22 8. COMPENSATION COMMITTEE ................................................................................................................................................................................................................... 24 9. COMPENSATION OF DIRECTORS .............................................................................................................................................................................................................. 26 10. CONTROL, RISK AND SUSTAINABILITY COMMITTEE ............................................................................................................................................................................. 26 11. THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM ............................................................................................................................................................. 30 11.1. INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM DIRECTOR ........................................................................................................... 34 11.2. INTERNAL AUDIT FUNCTION MANAGER .................................................................................................................................................. 35 11.3. COMPLIANCE PROGRAMME ................................................................................................................................................................... 36 11.4. INDEPENDENT AUDITORS ..................................................................................................................................................................... 38 11.5. THE FINANCIAL REPORTING OFFICER ..................................................................................................................................................... 38 11.6. COORDINATION BETWEEN PARTIES INVOLVED IN THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM .................................................. 39 12. INTERESTS OF DIRECTORS AND RELATED-PARTY TRANSACTIONS .................................................................................................................................................... 39 13. APPOINTMENT OF STATUTORY AUDITORS ........................................................................................................................................................................................... 41 1 Mediaset Group - Report on corporate governance and ownership structure 14. STATUTORY AUDITORS ............................................................................................................................................................................................................................ 41 15. RELATIONS WITH SHAREHOLDERS .......................................................................................................................................................................................................... 43 16. SHAREHOLDERS’ MEETINGS ..................................................................................................................................................................................................................... 44 17. CHANGES AFTER THE END OF THE REPORTING PERIOD ..................................................................................................................................................................... 45 18. CONSIDERATIONS ON THE LETTER OF 21 DECEMBER 2018 OF THE CHAIRMAN OF THE CORPORATE GOVERNANCE COMMITTEE ....................................... 45 ATTACHMENT A .............................................................................................................................................................................................................................................