2012 Reports and financial statements RAI GROUP Reports and financial statements 2012 RAI GROUP RAI GROUP Reports and financial statements at 31.12.2012 General contents 2 Corporate Bodies 3 Organisational Structure 5 Report on operations 11 Rai 21 Rai’s offering 27 TV division 41 Radio division 47 Web division 51 Commercial and broadcasting division 55 Parent Company Balance Sheet, Income Statement and Financial Position 71 Further information 83 Recommendation to Shareholders 85 Rai SpA Parent Company Financial Statements at 31 December 2012 155 Shareholders’ Meeting 157 Consolidated Financial Statements of the Rai Group at 31 December 2012 245 Financial Statements of Subsidiaries 283 Corporate Directory 2 Corporate Bodies Board of Directors (from 13 JUly 2012) Chairman Paolo Garimberti Anna Maria Tarantola (from 10 JUly 2012) Directors Giovanna Bianchi Clerici (1) Gherardo Colombo Rodolfo De LaUrentiis Rodolfo De LaUrentiis Alessio Gorla Antonio Pilati Angelo Maria Petroni Marco Pinto Nino Rizzo Nervo (2) GUglielmo Rositani GUglielmo Rositani Benedetta Tobagi Giorgio Van Straten LUisa Todini Antonio Verro Antonio Verro Secretary Nicola ClaUdio Board of Statutory Auditors Chairman Carlo Cesare Gatto Statutory Auditors in office Antonio Iorio Maria Giovanna Basile Alternate Statutory Auditors Liana MeUcci Pietro Floriddia (from 17 JUly 2012) General Manager Lorenza Lei LUigi GUbitosi Independent Auditors PricewaterhoUseCoopers (1) Resigning as from 15 JUne 2012. (2) Resigning as from 31 JanUary 2012. Corporate Bodies and Organisational Structure 3 Organisational Structure Summary Board of Directors Deputy General Manager coordination of radio and television offering General Manager Deputy General Manager real estate affairs, procurement and operating services New Media Commercial Broadcasting and TV Division Radio Division Division Division DTT Division General interest Radio RaiNet SpA Commercial Digital terrestrial channels - Networks Management - PUblic Utility Specialised channels radio channels Rai Way SpA Sipra SpA News Genres - Rai Cinema SpA - Rai Fiction Rai World SpA Report on operations 6 REPORT ON OPERATIONS he deterioration of the The television market strUctUre has Shareholders, international setting and tensions changed considerably: in fact, the Tin the EUro area led to an competition between the general- acceleration in 2012 of the recessive interest offering and pay-TV has been trend of the Italian economy, which was joined – within the scope of the free already evident as of the second half of offering – by the competition between 2011. the general-interest and new specialized channels, led by the semi- Within a macroeconomic framework general-interest entertainment, characterized by the redUction in channels dedicated to TV series and consUmption, the advertising market, films, those for children and sports following the decline of over 13% channels. recorded in 2009 and the almost 4% recovery in 2010, totalled a decline The rapid ascent of the new free close to 4% in 2011 and a redUction of channels, of which there are now over over 14% in 2012. 70, determines the need for the big operators to have a broad spectrUm These economic aspects were offering to adeqUately respond to the accompanied by a strUctUral change in breakdown of aUdiences and of the competitive context, invested by preferences and reqUirements. intensified, more articUlate and mUltilevel competition, in short, In sUch a complex and increasingly mUltidimensional: a competition open market, the Rai confirmed its between platforms, offering and role as UndispUted leader of the bUsiness models. television market once again in 2012: with a 39.8% share over the 24 hoUrs The main activators of the evolUtion in and with 41.3% in primetime, Rai the competitive context were the prevails over the Mediaset GroUp, switchover to digital terrestrial television, with an advantage of aboUt 6 a process which is now complete, and percentage points, Up on the previoUs the gradUal consolidation of the year. Internet. Rai is also leader in the specialized The switchover to digital television offering. With an offering of 11 semi- initially determined the extensive general interest and specialized development of pay-TV and channels, Rai totals a 6.2% average sUbseqUently the creation of share on the fUll day, bypassing interesting market spaces for the Mediaset (5.3%) and Sky (4.6%). affirmation of new specialised free offerings, leading to an aUdience Not only does Rai lead the viewing breakdown process to the detriment figUres, it also enjoys an excellent of the general general-interest Corporate RepUtation. offerings. The sUmmarized Corporate RepUtation The consolidation of the Internet in index has settled at a valUe of 6.7 terms of volUmes and freqUency of Use, points on a scale of 1 to 10, a positive and the relative capacity to attract valUe slightly higher than the average advertising investments, have made the of previoUs assessments. Internet indispensable for individUals and advertisers. Report on operations 7 Rai’s economic resUlts and GroUp’s television, radio and Internet offering of big sports events, which take place in consolidated resUlts in 2012, albeit in considerable relevance. even years, amoUnting to aboUt 140 the presence of the positive effects million eUros, a redUction in costs of indUced by actions taken to redUce the The fee is among the lowest in EUrope almost 110 million eUros was obtained. Company’s main cost items, have been for pUblic broadcasting companies and inevitably inflUenced by the economic also holds the record for particUlarly Actions to improve rationalisation and and strUctUral phenomena described high tax evasion, estimated at aroUnd efficiency, and redUctions in spending above. 27%, almost 19 percent higher than the across all areas of the Company, EUropean average. inclUding prodUct and related The costs of sports events and investment, had an immediate positive exceptional expenses linked mainly to A gradUal alignment with the EUropean impact and created the conditions to provisions for staff resignation incentives standard, with a conseqUent recovery of consolidate the benefits permanently. also significantly inflUenced said resUlts. significant resoUrces, estimated at aroUnd 500 million eUros a year, woUld These resUlts were achieved throUgh a Rai’s net revenUes amoUnt to 2,625.5 reqUire a revision of the payment reasoned and definitely not linear million eUros (2,761.4 million eUros at collection methods, joined by a combination of targeted and selective GroUp level), reflecting a redUction of strengthening of the regUlatory operations which made it possible to 199.3 million eUros (-212.5 million instrUments designed to combat attain real and significant increases in eUros at GroUp level), attribUtable evasion, which are cUrrently blatantly operating efficiency and to optimize the entirely to a drop in advertising inadeqUate. level of Utilisation of internal resoUrces, revenUes. also thanks to the implementation of Attacking the anomaloUs phenomenon more streamlined and effective ContinUing the trend begUn in 2008, of fee evasion represents a decisive prodUction models. advertising revenUes fell almost 210 enabling factor which, besides million eUros in 2012, corresponding to contribUting to restoring Rai’s financial The income statement also benefited a 23.6% decline compared to 2011. eqUilibriUm, woUld accelerate the from the redUction of employee-related prodUct technological renewal process costs, which also inclUde costs deriving Other revenUes also fell by 30 million which is indispensable to Rai and of from the renewal of the collective laboUr eUros, partly dUe to the general investments in qUality prodUcts. contract of middle management, office economic weakness, largely concentrated staff and blUe collars, which expired on in agreements with the PUblic YoU are also reminded that the deficit of 31 December 2009 and was signed in Administration, in relation to government pUblic resoUrces accUmUlated with FebrUary 2013. bUdget and sovereign debt tensions. respect to the costs sUstained by the Concession holder for the fUlfilment of Lastly, the resUlt is inflUenced by The adaptation of the per-Unit licence PUblic-Service responsibilities amoUnts, exceptional items totalling 48.8 million fee created almost 40 million eUros of since 2005, to over 2 billion eUros. The eUros for Rai (50.9 million eUros at higher income, in relation to the annUal imbalance, as yoU know, is the GroUp level), connected mainly to increase of the per-Unit licence fee by resUlt of separate accoUnting, in provision for staff resignation incentives 1.4% (from 110.5 to 112.0 eUros), a compliance with the form approved by aimed to redUce strUctUral costs with percentage largely in line with the the Italian CommUnications AUthority pre-pensioning of employees belonging schedUled rate of inflation, and and certified by the independent aUditor. to all professional categories. therefore insUfficient to recover the real erosion of pUrchasing power. In terms of operating costs, the tendency Rai records a loss of 245.7 million towards a redUction in expenditUre was eUros in 2012 (244.6 million eUros at The policy for the annUal adaptation of strengthened, within a constant setting – GroUp level). DUe to the the per-Unit licence fee was confirmed, i.e.: a sUbstantial invariance of prodUction aforementioned phenomena, 2012 was on the same basis, also for 2013, with layoUts and extent of the offering, – clearly down on the total of the