2012 first quarter results presentation

2012 First Quarter Results Presentation

Mil 8th M 2012Milan, 8th May 2012

| 1 |

Broadcasting & Advertising

| 2 |

ITALY | TV Consumption trend (2003-2012)A D il i t

290

Average Daily minutes

269 271 266273

256 256

270 270283 290

266

Individuals

15-64 years

251 251245

251

232 233

245 244257

266

232 233

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Auditel, January-March

| 3 |

MEDIASET 2012 1Q | Commercial target Audience Share(15 64 li t h l )

1Q 2011 1Q 2012

(15-64 yrs, generalist channels)

24 Hours32.2% 29.9%

35.0% 33.4%

35 4%

35,9%

34 1%

33.0%Prime Time

35.4% 34.1%

Source: Auditel

| 4 |

MEDIASET 2012 1Q | Commercial target audience share24 H

33 4%Generalist (C5+I1+R4)

15-64 yrs24 Hours

33.4%

7.1%

Generalist (C5+I1+R4)

Multichannel (FTA + Pay TV)

40.5%Total

29.9%Generalist (R1+R2+R3)

5.5%

35 4%

Multichannel FTA (11)

Total 35.4%Total

Source: Auditel ; Pay TV Channels Company elaborations on Auditel data

| 5 |

Source: Auditel ; Pay TV Channels, Company elaborations on Auditel data

MEDIASET 2012 1Q | Multichannel Audience Share24 H i l t t24 Hours – commercial target

2011 2012

MS DTT (Free+Pay) 6.3% 7.1%

2011 2012

RAI DTT

SKY Channels

4.7%

4 5%

5.5%

5 6%SKY Channels

FOX Channels

4.5%

2.1%

5.6%

2.3%

Discovery 1.4% 2.1%

Source: Company elaborations on Auditel data

| 6 |

p y

ITALY 2012 1Q | Advertising market trend

Jan-Feb 2012 vs. Jan-Feb 2011

Total Market

Mediaset (FTA + Pay)

-6.0%

-10.0%

Rai

Sky

-14.1%

+25.3%

Press

Radio

-7.9%

-6.3%

Internet * +24.3%

Source: Nielsen, excluding direct mail*Excluding Keyword, search

| 7 |

E lMEDIASET 2012 1Q | Total Advertising revenuesEuro ml

-10.2%

693.3 622.7

1Q 2011 1Q 20121Q 2011 1Q 2012

Note: all platforms

| 8 |

Note: all platforms

MEDIASET 2012 1Q | Advertising Breakdown by Sector

Impossibile v isualizzare l'immagine. La memoria del computer potrebbe essere insufficiente per aprire l'immagine oppure l'immagine potrebbe essere danneggiata. Riavviare il computer e aprire di nuovo il file. Se v iene visualizzata di nuovo la x rossa, potrebbe essere necessario eliminare l'immagine e inserirla di nuovo.

TELECOM +0 3%

1Q 11 vs. 1Q 10 1Q 12 vs. 1Q 11

-29 8%TELECOM +0.3% -29.8%

AUTOMOTIVE +3.7% -10.5%Impossibile v isualizzare l'immagine. La memoria del computer potrebbe essere insufficiente per aprire l'immagine oppure l'immagine potrebbe essere danneggiata. Riavviare il computer e aprire di nuovo il file. Se v iene visualizzata di nuovo la x rossa, potrebbe essere necessario eliminare l'immagine e inserirla di nuovo.

INDUSTRIAL/UTILITY 147.0% -32.8%

| 9 |


1Q 11 vs. 1Q 10 1Q 12 vs. 1Q 11

-7.4% -6.5%GROCERY

-9.3%

-1.5%

FOOD

BEVERAGES

-9.9%

+5.7%

FOOD 7 6% 8 0%

-1.7%PERSONAL CARE +2.3%

FOOD -7.6% -8.0%

-11.8%

+0.8%

HOUSEKEEPING

TOILETRIES

-13.2%

-7.8%

NON FOOD -3.9%-6.9%

| 10 |


RETAIL +8 3%

1Q 11 vs. 1Q 10 1Q 12 vs. 1Q 11

-4 4%RETAIL +8.3% -4.4%

LEISURE/BETTING +34.5% +1.5%

FINANCE -40.0% +28.6%

| 11 |

Financials

| 12 |

MEDIASET GROUP 2012 1Q | P&L Highlights

Net Consolidated RevenuesItaly

(Euro ml.) 1Q 2011

1,112.1846 3

1Q 2012

977.8760 2Italy

Spain

EBITDA

846.3266.1

459.7

760.2218.0

371.6ItalySpain

EBIT

358.0101.7

135 8

293.678.0

38 9EBITItalySpain

135.889.146.6

38.918.520.4

NET PROFIT

Group Net Financial PositionItaly

68.4

(1,423.1)(1 424 5)

10.3

(1,675.2)(1 675 6)Italy

Spain(1,424.5)

1.5(1,675.6)

0.4

| 13 |

MEDIASET ITALIAN BUSINESS 2012 1Q | P&L Results

Net Consolidated Revenues

(Euro ml.) 1Q 2012

760.2

1Q 2011

846.3Personnel Costs

Other Operating Costs

EBITDA

(119.2)

(347.5)

293.6

(114.9)

(373,3)

358 0EBITDARights Amortisation

Other Amortisation & Depreciation

Operating Profit

293.6(236.7)

(38.3)

18 5

358.0(234.8)

(34.1)

89 1Operating ProfitFinancial Income (Losses)

Associates

P T P fit

18.5(13.7)

1.5

6 3

89.1(6.9)

2.1

84 3Pre-Tax ProfitTaxes

Minorities

6.3(2.5)

(2.2)

84.3(32.7)

(0.1)NET PROFIT 1.551.4

| 14 |

MEDIASET ITALIAN BUSINESS | New Reporting format

Main reasons at the root of restatement:

• Evolution of the advertising market and of the commercial policy: advertisers willing to buy multichannel and multiplatform

• Consistency with the evolution of the TV business model based on the Free-Pay/linear y ynon-linear matrix

• Consolidation of an integrated model:

i d ti di t ib ti b d l t f ti l t th TV b i• movie production, distribution, web development functional to the TV business

• greater integration of the production process and contents acquisition

• corporate simplification and cost efficiencycorporate simplification and cost efficiency

• Centralised decision process: the Top Management makes the strategic decisions, allocates the resources and evaluates the performance on the basis of this new integrated model

• Symmetric model and disclosure between Italy and Spain

• Correspondence between business units and listed Entities

| 15 |

MEDIASET ITALIAN BUSINESS | Integrated Tv Activities(Euro ml.)

Total Net Revenues 845.0

1Q 2011 1Q 2012

746.8Total Gross advertising revenues

Commissions

Total Net Advertising Revenues

693.3

(102.8)

590.5

622.7

(91.7)

531.0g

Pay Tv Revenues

Other Revenues

Total Costs

135.0

119.5

(758 1)

131.1

84.7

(740 0)Total CostsPersonel costs

Other operating costs

(758.1)(105.7)

(354.0)

(740.0)(107.7)

(326.0)

Rights Amortisation


Intra-company items

(234.8)

(26.9)

(36.8)

(236.7)

(27.8)

(41.8)

Integrated Tv Activities Operating profit 86.8 6.8

| 16 |

MEDIASET ITALIAN BUSINESS | EI Towers

(Euro ml.) 1Q 2011 (*) 1Q 2012

Total Net Revenues3rd Party Revenues

Intra-company items

56.113.4

42.7

38.61.3

37.3Intra company items

Total CostsPersonnel

(44.4)(11.5)

(36.3)(9.2)

Other operating Costs


Intra-company items

(21.5)

(10.5)

(0.9)

(19.4)

(7.2)

(0.5)p y

EI Towers Operating Profit

( )

11.7

( )

2.3

(*) Carve-outPro-forma 1Q2011data (as reported by EI Towers): revenues 52.7 ml and EBIT 9.0 ml

| 17 |

f Q ( p y )

MEDIASET ITALIAN BUSINESS 2012 1Q | Investments

(Euro ml )

1Q 20121Q 2011

178.0 146.1

(Euro ml.)

TV rights and cinema

Technical & immaterial25.027.6

Total Investments205.7 171.0

| 18 |

MEDIASET ITALIAN BUSINESS 2012 1Q | Cash Flow Statement

(1,801.9)

281 4

Initial Net Financial Position

Cash Flow from Core Activities

(Euro ml.) 1Q 2011 1Q 2012

(1,562.1)

137 6 281.4280.0

(171.0)

0.1

Cash Flow from Core ActivitiesCash Flow from Operations

Investments

Disinvestments

137.6320.6

(205.7)

0.2

172.4

(39.9)

241.5

Change in Net Working Capital (CNWC)

Equity (investment)/ disinvestment

Free Cash Flow

22.5

-

137.6

-

-

(115.2)

Dividends

Cashed-in dividends

Change in consolidation area

-

-

- (115.2)

126.3

(1,675.6)


Total Net Cash Flow

Final Net Financial Position (31/03)

137.6

(1,424.5)

| 19 |

Back up Slides

| 20 |

MEDIASET ITALIAN BUSINESS 2011 1Q | EI Towers restatement

(Euro ml.) FTA TV

Restatement

11.0

Restated1Q 2011

607.0

EI TowersCarve-out

-

1Q 2011

596.0

Revenues

Pay TV

Network Operator

EI Towers

-

(9.6)

-

177.8

-

38.6

-

(38.6)

38.6

177.8

48.3

-

Other Activities

Intra-company items

Total Revenues

-

(1.4)

-

96.6

(73.8)

846.3

-

-

-

96.6

(72.4)

846.3

(Euro ml.)

FTA TV

Restatement

(6.9)

Restated1Q 2011

93.0

EI TowersCarve-out

-

1Q 2011

99.9

Operating Profit

Pay TV

Network Operator

EI Towers

-

6.9

-

(18.4)

-

2.3

-

(2.3)

2.3

(18.4)

(4.6)

-

Other Activities

Intra-company items

Total Operating Profit

-

-

-

9.1

3.1

89.1

-

-

-

9.1

3.1

89.1

| 21 |

MEDIASET ITALIAN BUSINESS 2011 1Q | Integrated Tv Activities Restatement

(Euro ml.)

Total Net Revenues

1Q 2011Other Activities

96 6

Total

845 0

Pay Tv

177 8

FTA TV

607 0

Intra-company

(36 5)Total Net RevenuesAdvertising revenues

Commissions

T t l N t Ad ti i R

96.62.3

(0.3)

2 0

845.0693.3

(102.8)

590 5

177.822.6

(3.4)

19 2

607.0668.4

(99.2)

569 2

(36.5)-

-


Pay Tv Revenues

Other Revenues

I t it

2.0

-

71.3

23 3

590.5

135.0

119.5

19.2

135.0

23.6

569.2

-

24.6

13 2

-

-

-

(36 5)Intra-company items


23.3

(87.4)(4.7)

-

(758.1)(105.6)

-

(196.2)(4.8)

13.2

(514.0)(96.1)

(36.5)

39.5-

Operating Costs

Rights Amortisations

Other D&A

(31.4)

(36.0)

(0.7)

(354.0)

(234.8)

(26.9)

(80.2)

(85.6)

(5.8)

(242.4)

(139.5)

(20.4)

-

26.3

-

Intra-company items

Operating Profit

(14.6)

9.1

(36.8)

86.8

(19.8)

(18.4)

(15.6)

93.0

13.2

3.1

| 22 |

MEDIASET ITALIAN BUSINESS 2012 1Q | Operations Breakdown

Integrated Tv Activities

Total Net Revenues

84 0

(Euro ml.) 1Q 2011 1Q 2012

46 8

∆ml/euro ∆%

11 6%(98 2)Integrated Tv Activities

EI Towers

Intra-company items

845.0

38.6

(37 3)

746.8

56.1

(42 7)

-11.6%

45.3%

14 5%

(98.2)

17.5

(5 4)Intra company items

TOTAL

(37.3)

846.3

(42.7)

760.2

14.5%

-10.2%

(5.4)

(86.1)

Operating Profit(Euro ml.) 1Q 2011 1Q2012 ∆ml/euro ∆%

Integrated Tv Activities

EI Towers

86.8

2.3

6.8

11.7

-92,2%

n.m.

(80.0)

9.4

TOTAL 89.1 18.5 -79.2%(70.6)

| 23 |

MEDIASET ITALIAN BUSINESS FY 2010 | Integrated Tv Activities Restatement

(Euro ml.)

Total Net Revenues

FY 2010Other Activities

333 4

Total

3 431 3

Pay Tv

700 4

FTA TV

2 525 5

Intra-company


Commissions

T t l N t Ad ti i R

333.47.5

(0.7)

6 8

3,431.32,865.9

(425.4)

2 440 5

700.465.7

(9.6)

56 1

2,525.52,792.7

(415.1)

2377 5

(128.1)-

-


Pay Tv Revenues

Other Revenues

I t it

6.8

-

207.5

119 1

2,440.5

473.7

517.0

56.1

473.7

170.6

2377.5

-

139.0

9 0

-

-

-



119.1

(293.6)(20.4)

-

(2,847.4)(417,4)

-

(700.7)(17.7)

9.0

(1,956.2)(379.3)

(128.1)

103.2-

Operating Costs


Other D&A

(152.1)

(108.7)

(5.3)

(1,293.9)

(859.9)

(130,9)

(334.4)

(283.1)

(31.3)

(807.5)

(567.2)

(94.3)

-

99.1

-

Intra-company items

Operating Profit

(7.1)

39.8

(145.3)

583.9

(34.2)

(0.3)

(108.0)

569.3

4.1

(24.9)

| 24 |

MEDIASET ITALIAN BUSINESS FY 2011 | Integrated Tv Activities Restatement

(Euro ml.)

Total Net Revenues

FY 2011Other Activities

285 0

Total

3 230 9

Pay Tv

657 7

FTA TV

2 396 0

Intra-company


Commissions

T t l N t Ad ti i R

285.013.8

(1.0)

12 8

3,230.92,771.1

(410.9)

2 360 2

657.790.4

(13.4)

77 0

2,396.02,666.8

(396,5)

2270 3

(107.7)-

-


Pay Tv Revenues

Other Revenues

I t it

12.8

-

192.4

79 8

2,360.2

525.2

345.5

77.0

525.2

55.4

2270.3

-

97.7

27 9

-

-

-



79.8

(274.6)(19.3)

-

(2,871.9)(415,6)

-

(726.2)(25.7)

27.9

(1,995.9)(370.6)

(107.7)

124.9-

Operating Costs


Other D&A

(112.8)

(106.6)

(8.4)

(1,295.5)

(857.6)

(154,1)

(344.1)

(267.6)

(29.9)

(838.6)

(582.8)

(115.8)

-

99.4

-

Intra-company items

Operating Profit

(27.5)

10.4

(149.1)

359.0

(58.9)

(68.5)

(88.1)

400.1

25.5

17.1

| 25 |

MEDIASET SPANISH BUSINESS | Back up Slides

| 26 |

MEDIASET ESPANA | P&L Results

266.1 218.0Net Consolidated Revenues

(Euro ml.) 1Q 2011 1Q 2012

(39.5)

(124.9)

101 7

(25.9)

(114.2)

78 0

Personnel Costs

Other Operating Costs

EBITDA 101.7

(55.0)

46.6

78.0

(57.6)

20.4

EBITDA

Amortisation & Depreciation

EBIT

2.5

1.7

0.4

0.2

Financial Income (Losses)

Associates

50.8

(10.7)

40 1

21.0

-

21 2

Pre-Tax Profit

Taxes

NET PROFIT Reported 40.1 21.2NET PROFIT Reported

| 27 |

MEDIASET ESPANA | Investments

Total Investment 1Q 201296.6 m

(Euro ml.)

0,2 2

94,4TV RightsCo production & DistributionCo-production & DistributionTangible & Intangible Fixed Assets

| 28 |

MEDIASET ESPANA | Cash Flow Statement

(28.0)Initial Net Financial Position 26.5

(Euro ml.) 1Q 2011 1Q 2012

10.3

95.4

(96 3)

Free Cash Flow

- Cash Flow from Operations

I t t /Di i t t

(24.9)

80.3

(96 6)(96.3)

11.2

(0.3)

- Investments/Disinvestment

- Change in Net Working Capital (CNWC)

Change in Equity

(96.6)

(8.7)

-( )

19.5

-

g q y

Equity (Investments)/Disinvest.

Cashed in Dividends

(1.2)

-

-

-

29 5

Dividends


Total Net Cash Flow

-

-

(26 1)29.5

1.5

Total Net Cash Flow

Final Net Financial Position (31/03)

(26.1)

0.4

| 29 |

Investor Relations Department:

Tel: +39 02 2514.7008Fax: +39 02 2514.6719Email: [email protected] bSit di t it/i t /

Forward-looking StatementsStatements contained in this document particularly the ones regarding any Mediaset Group

WebSite: www.mediaset.it/investor/

Statements contained in this document, particularly the ones regarding any Mediaset Grouppossible or assumed future performance, are or may be forward looking statements and inthis respect they involve some risks and uncertainties.

Mediaset Group actual results and developments may differ materially from the onesexpressed or implied by the above statements depending on a variety of factors.

Any reference to past performance of Mediaset Group shall not be taken as an indication offuture performance.

This announcement does not constitute an offer to sell or the solicitation of an offer to buythe securities discussed herein.

The executive responsible for the preparation of the Mediaset S.p.A. accounts, LucaMarconcini, declares that, as per para. 2 art. 154-bis, of the “Testo Unico della Finanza”, thatthe accounting information contained in this document corresponds to that contained in thecompany’s books.

2012 first quarter results presentation

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