Mediaset Groupplit/Mediaset Group - 201… · Attilio Ventura . Executive Committee. Fedele Confalonieri . Pier Silvio Berlusconi . Giuliano Adreani . Gina Nieri . Risk and Control

Mediaset Group Half Year Financial Report

at 30 June 2013

MEDIASET S.p.A. - via Paleocapa, 3 - 20121 Milan

Share Capital Euros 614,238,333.28 fully paid up

Tax Code, VAT number and inscription number in the

Milan Enterprises Register: 09032310154

Website: www.mediaset.it

INDEX

Corporate Bodies ..................................................................................................................................... 1

Financial Highlights ................................................................................................................................... 2

Foreword .................................................................................................................................... 3

Interim Report on Operations at 30 June 2013 ........................................................................ 3

Outstanding events and operations in the first half .................................................................................. 8

Analyses of the results by geographical areas ......................................................................................... 10

Financial results ...................................................................................................................................... 10

The Balance Sheet and Financial Situations ............................................................................................ 17

Group Employees ................................................................................................................................... 20

Transactions with Related Parties .......................................................................................................... 21

Opt-out of obligation for publication of information documents in connection with significant operations ............................................................................................... 21

Significant events that took place after 30 June 2013 ............................................................................. 21

Risks and uncertainties for the remaining part of the financial year ...................................................... 22

Forecast for the year .............................................................................................................................. 23

Interim Consolidated Financial Statements ............................................................................ 25

Consolidated Accounting Tables ........................................................................................................... 26

Explanatory Notes .................................................................................................................................. 32

List of the Equity Investments in the Consolidated Accounting Statemements at 30 June 2013 ..................................................... 51

Statement concerning the Condensed Half-Year Financial Statements in compliance with Art. 154-bis of Italian Law Decree 58/98 ................................................. 55

Auditors’ review report on the half-year condensed consolidated financial statements ........................................................................................... 59

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CORPORATE BODIES

Board of Directors Chairman Fedele Confalonieri Deputy Chairman Pier Silvio Berlusconi CEO Giuliano Adreani Directors Marina Berlusconi Pasquale Cannatelli Paolo Andrea Colombo Mauro Crippa Bruno Ermolli Marco Giordani Alfredo Messina Gina Nieri Michele Perini Niccolò Querci Carlo Secchi Attilio Ventura Executive Committee Fedele Confalonieri Pier Silvio Berlusconi Giuliano Adreani Gina Nieri Risk and Control Committee Carlo Secchi (Chairman) Alfredo Messina Attilio Ventura Remuneration Committee Attilio Ventura (Chairman) Paolo Andrea Colombo Bruno Ermolli Governance and Nominating Attilio Ventura (Chairman) Committee Paolo Andrea Colombo Carlo Secchi Indipendent Committee Michele Perini (Chairman) for related parties transactions Carlo Secchi Attilio Ventura Board of Statutory Auditors Mauro Lonardo (Chairman) Silvio Bianchi Martini (Active Auditor) Francesco Vittadini (Active Auditor) Massimo Gatto (Substiture Auditor) Flavia Daunia Minutillo (Substiture Auditor) External Auditors Reconta Ernst & Young S.p.A.

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MEDIASET GROUP: FINANCIAL HIGHLIGHTS

mio € % mio € % mio € %

3,720.7 100% Total net Revenues 1,737.0 100% 1,999.3 100%

2,834.9 76.2% Italy 1,310.4 75.4% 1,525.8 76.3%

886.7 23.8% Spain 427.0 24.6% 474.0 23.7%

(235.4) 100% EBIT 133.6 100% 145.6 100%

(284.0) 120.6% Italy 86.4 64.7% 113.6 78.0%

48.8 -20.7% Spain 47.2 35.3% 32.0 22.0%

(287.4) Profit before Tax and Minority Interest 94.2 120.5

(287.1) Net Profit 30.1 42.8

mio € mio € mio €

4,677.9 Net Invested Capital 4,554.4 4,976.4

2,965.1 Total Net Shareholders' Equity 3,018.0 3,280.3

2,121.9 Net Group shareholders' Equity 2,155.3 2,465.4

843.2 Minorities Shareholders' Equity 862.7 814.9

(1,712.8) Net Financial Position (1,536.4) (1,696.1)

1,333.0 Operating Cash Flow 582.6 693.2

718.9 Investiments 376.4 469.6

113.6 Dividens paid by the Parent Company - 113.6

32.1 Dividens paid by Subsidiares 4.1 32.0

% % %

5,908 100% Mediaset Group Personnel (headcount) 5,828 100% 6,253 100%

4,573 77.4% Italy 4,497 77.2% 4,882 78.1%

1,335 22.6% Spain 1,331 22.8% 1,371 22.0%

6,252 100% Mediaset Group Personnel (average) 5,907 100% 6,288 100%

4,892 78.2% Italy 4,579 77.5% 4,915 78.2%

1,360 21.8% Spain 1,328 22.5% 1,373 21.8%

n.s. EBIT/Net Revenues 7.7% 7.3%

n.s. Italy 6.6% 7.4%

5.5% Spain 11.1% 6.8%

n.s. EBT/Net Revenues 5.4% 6.0%

n.s. Net Profit/Net Revenues 1.7% 2.1%

(0.25) EPS (euro per share) 0.03 0.04

(0.25) Diluted EPS (euro per share) 0.03 0.04

Main Balance Sheet and Financial Data

Main Income Statement Data

Personnel

1H 2013 1H 2012

1H 2013 1H 2012FY 2012

FY 2012 1H 2013 1H 2012

30th June 2013 30th June 201231st December 2012

Main Indicators

FY 2012

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FOREWORD

This Half-Yearly Financial Report, drawn up pursuant to article 154, part three, of the Legislative Decree 58/1998, includes the Interim Report on Operations, the Half-Yearly Condensed Consolidated Financial Statements and the Attestation established by article 154, part two, of the Legislative Decree 58/98.

The Half-Yearly Condensed Consolidated Financial Statements have been prepared in conformity with the IAS/IFRS (International Accounting Standards/International Financial Reporting Standards) that are applicable pursuant to EC Regulation number 1606/2002 of the European Parliament and Council of 19 July 2002 and, specifically, with IAS 34 – Interim Financial Reporting, as well as according to the measures issued in order to actuate article 9 of the Legislative Decree number 38/2005.

The structure and the contents of the reclassified consolidated accounting tables contained in the Interim Report on Operations and the mandatory layouts included in this Report are in line with those produced at the time of the Yearly Financial Statements.

The explanatory notes have been drawn up in conformity with the contents prescribed by IAS 34 – Interim Financial Reporting, also taking into account the measures supplied by Consob in its Communication number 6064293 of 28 July 2006. Therefore, the informational contents of this Report are not the same as those for a fully completed set of Financial Statements, as these would be drawn up pursuant to IAS 1.

It is highlighted that the Income Statement data relative to the First Half-Year 2012 have been restated in order to take in, retroactively from 1 January the impacts connected with the recalculation of the accounting book values and the future useful lives of some assets, which took place within the context of the final allocation process regarding the assets and liabilities acquired as a result of the Business Combination between the “Tower” businesses owned by the Mediaset Group and the DMT Group, as was reported on in the Consolidated Financial Statements at 31 December 2012. These impacts have brought about higher amortisation for EUR 0.8 million and a lower net financial result belonging to the, amounting to EUR 0.3 million, compared to what was shown in the Half-Yearly Financial Report for 2012.

INTERIM REPORT ON OPERATIONS AT 30 JUNE 2013

In the first part of the financial year the continuing economic recession that has been an ongoing characteristic of Italy and Spain has impacted, yet again, the progress and trend of the advertising markets within which the Group operates, bringing about a significant drop in the revenues compared to those for the same accounting period of the previous financial year.

Summary of Group Results

As opposed to this negative trend, the Mediaset Group, based on the current information available at the date of this report, has consolidated its shares of the advertising market within both of its geographical reference areas, while its continuing process of stringent and efficient cost control and its actions regarding investments have enabled it to safeguard, at the consolidated level, the operating profitability that it achieved in the same accounting period of 2012 and to reduce its consolidated financial debt, through the generation of cash during the accounting period, compared to the figure at 31 December 2012.

Half Year Financial Report at 30 June 2013 – Interim Report on Operations

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Below there are summarised the key consolidated economic/financial data recorded in the relative half-year, compared to those achieved in the same accounting period of the previous financial year:

The consolidated net revenues amounted to EUR 1,737.0 million, down compared to the EUR 1,999.3 million for the same period of 2012.

The operating result (Ebit) amounted to EUR 133.6 million, compared to the figure of EUR 145.6 million recorded in the same accounting period of the previous financial year. Operating profitability reached 7.7%, compared to the figure of 7.3% recorded for the same period of 2012;

The profit earned from the functioning assets, before taxes and the amount belonging to minority shareholders, amounted to EUR 53.4 million compared to the figure of EUR 69.1 million at 30 June 2012.

The net profit belonging to the Group amounted to EUR 30.1 million, compared to the figure of EUR 42.8 million for the same period of 2012.

The net consolidated financial debt went down from EUR 1,712.8 million at 31 December 2012 to EUR 1,536.4 million at 30 June 2013 due to the impact of the cash generated during the accounting period, i.e. the free cash flow, which amounted to EUR 178.7 million for the period.

In the first six months of 2013 the Consolidated Net Revenues from the Group’s operations in Italy reached EUR 1,310.4 million, compared to the figure of EUR 1,525.8 million achieved in the same accounting period of the previous financial year. The drop was mainly caused by the negative trend of the advertising revenues.

Progress and trend of operations by geographical area: Italy

The gross advertising revenues from the media that are in concession of the Group, i.e. relative to the Free and Pay TV television channels and to the amount belonging to the Group from the sub-concessions on the websites, in the first half-year of 2013 recorded, compared to the figure for the same accounting period of the year 2012, a drop that amounted to 17.5%. In spite of the big difficulties that have characterised the trend and progress of the market in the first few months of the year, the Group, as certified by the Nielsen data for the first five months of the year, has succeeded in maintaining the levels of its market shares. However, the progress and trend of the advertising revenues in the second quarter showed an improvement compared to the negative situation that took place during the first three months of the financial year where a drop was recorded that amounted to 19.4%.

The characteristic revenues of Mediaset Premium consisting of prepaid cards, recharges and easy pay subscriptions, arrived at the figure of EUR 280.2 million, increasing compared to the EUR 260.1 million recorded for the first half-year of 2012.

For the half-year in question the total costs in Italy, i.e. costs of personnel, other operating costs, amortisation, depreciation and write-downs, went down by 13.3%, compared to the figure for the same period of the previous financial year. Particularly, the television operating costs (not including items relating to amortisation and write-downs) went down by 12.6%, and this demonstrates the consolidation of the process of the ongoing structural reduction of the functional costs, which is planned on a three-year basis.


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The Operating result (EBIT) for all the business operations in Italy amounted to EUR 86.4 million, compared to the EUR 113.6 million at 30 June 2012. At end of the accounting period in question the operating profitability was 6.6%, compared to the figure of 7.4% for 2012.

The total audience during the 24-hour period in the first six months of 2013 was 11 million 100 thousand individual viewers, with a growth rate of 0.3% compared to the figure for the same period of 2012.

The total audience increase is mainly linked to the increase in the average viewing time, i.e. +8 minutes increased viewing per person per day.

For the relative accounting period and in total the Mediaset Networks, considering the contributions of the channels viewable in Digital Terrestrial Television, for both Free and Pay TV (Premium Calcio), according to the figures obtained by AGB Nielsen, achieved shares of 32.3% in the 24-hour period, 32.0% in Day Time and 33.3% in Prime Time.

In detail the results that were achieved by the individual networks, in the period being examined, were the following:

Source: AGB Nielsen data computation. For the channel Top Crime data collection only started on 23 June 2013. The Mediaset total is the weighted average and not the sum of the individual channels.

There has to be highlighted the first place that was obtained by Canale 5 and the third place that was achieved by Italia 1 in all of the time ranges, regarding the 15-64 years target, as well as the precious contribution made by the theme networks, both Pay and Free TV, which made the Mediaset total grow by about 5 points of share on the individual viewers target and by 6 points on the commercial target, in all of the time ranges.

35.2 35.136.5

34.3 34.0

37.1

24 hours Day Time Prime Time

First Half 2013% COMMERCIAL TARGET SHARE 15-64 years old

Mediaset RAI


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Regarding the Spring “guarantee” period the generalist Mediaset Networks achieved an audience share of 27.2% in the 24-hour period, of 27.1% in Day Time and of 28.5% in Prime Time. Considering the contributions of the digital TV channels, the total audience share in the 24-hour period amounted to 32.6%, to 32.5% in Day Time and to 34.1% in Prime Time.

The contribution of the Multichannel Free TV and Pay TV channels continues to be extremely positive and it has made the Mediaset total grow by about 5 points of share on the individual viewers target and by 6 points on the commercial target.

In the Spring of 2013 Mediaset again confirmed its leadership regarding the commercial target in all the relative time ranges and there has to be highlighted that Canale 5 is still classified as the first placed channel and that Italia 1 is still classified as the third.

35.9 35.7

37.4

34.2 33.9

36.3

24 hours Day Time Prime Time

GUARANTEE PERIOD: SPRING 2013 (from 06/01 to 01/06)

% COMMERCIAL TARGET SHARE 15-64 years old

Mediaset RAI

In the following table there are shown the comprehensive scheduling of the three Mediaset generalist networks for the first half of the 2013 and 2012, with the detail of the broadcasted hours for the main kinds of programmes.

Mediaset Networks - Broadcasted programmes ∆ ∆%Film 2,141 16.4% 2,333 17.8% (192) -8.2%

Tv Movie 447 3.4% 559 4.3% (112) -20.0%

Mini-series 221 1.7% 107 0.8% 114 106.5%

Telefilm 2,903 22.3% 2,737 20.9% 166 6.1%

Tv Romance 12 0.1% 29 0.2% (17) -58.6%

Sit-com 261 2.0% 401 3.1% (140) -34.9%

Soap 140 1.1% 183 1.4% (43) -23.5%

Telenovelas 283 2.2% 197 1.5% 86 43.7%

Cartoons 440 3.4% 493 3.8% (53) -10.8%Total TV Rights 6,848 52.6% 7,039 53.7% (191) -2.7%

News 1,636 12.6% 1,731 13.2% (95) -5.5%

Information programmes 1,318 10.1% 1,159 8.8% 159 13.7%

Sport programmes 283 2.2% 70 0.5% 213 304.3%

Event 180 1.4% 93 0.7% 87 93.5%

Entertainment: 2,120 16.3% 2,290 17.5% (170) -7.4%

Culture 188 1.4% 273 2.1% (85) -31.1%

Teleshopping 455 3.5% 449 3.4% 6 1.3%Total in-house productions 6,184 47.4% 6,065 46.3% 119 2.0%

Total 13,032 100.0% 13,104 100.0% (72) -0.5%

IH 2013 I H 2012

At the end of the first half-year of 2013 the consolidated net revenues of the Mediaset España Group arrived at EUR 427.0 million, recording a reduction amounting to 9.9%, compared to the figure for the same period of the previous financial year.

Progress and trend of operations by geographical area: Spain


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The gross television advertising revenues, arrived at EUR 418.2 million, recording a reduction amounting to 12.6%, compared to those for the same period of the previous financial year. Mediaset España has, however, reinforced its share of its television reference market at 44.1%. Based on the Infoadex data, the television advertising investments in Spain during the first six months of the year went down by –14.3%, compared to the figure for the same period of the previous year, with a drop in the advertising investments on the television media amounting to 12.8%.

The value of the total costs, (including personnel expenses, other operating costs, amortisation and write-downs) for the first six months of the financial year, recorded a reduction amounting to 14.1%, compared to the figure for the same period of the previous year. This reduction was achieved thanks to the strong action taken to obtain cost efficiency and also due to the lower costs relative to the absence of some sporting events, e.g. UEFA EURO 2012, which were present in the schedule of the same accounting period of the previous financial year.

Due to the impact of these factors the Operating Result arrived at EUR 47.2 million, compared to EUR 32.0 million for the same period of the year 2012, which was equivalent to an operating profitability of 11.0%, compared to the figure of 6.8% achieved in the first half-year of 2012.

The overall Free TV television offer of the Mediaset España Group, as well as consisting of Telecinco and Cuatro, also includes the theme channels La Siete, Factoria De Ficcion, Boing, Divinity and Energy, was also enriched during the first six months of the year with the launching of the them channel “Nueve”, which is aimed at a female audience. During the accounting period the average audience share, in the 24-hour period recorded by the Mediaset España channels based on total individual viewers amounted to 28.8%, while regarding the commercial target it reached the figure of 30.8%.

During the first six months of the year television viewing in Spain grew, compared to the data for the same period of the previous financial year, at the rate of 0.9%, with a daily average in terms of total viewing amount to about 7.8 million viewers.

In the following table there is given the audience split between the three generalist and theme networks of the Mediaset España Group.


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The following table shows the contents of the programme schedules that were broadcasted by the two main networks Telecinco and Cuatro during the period being examined, which also shows, compared to figures for the same period of the previous year, the further increase in the part of the programmes that is self-produced, compared to the part that is obtained through rights that are acquired.

Telecinco-CuatroHours of broadcasted contents ∆ ∆%

Film 544 6.3% 540 6.2% 4 0.7%TV Movies, Mini-series and Telefilm 1,306 15.0% 1,850 21.2% (544) -29.4%Cartoons 16 0.2% 16 0.2% - 0.0%Total TV Rights 1,867 21.5% 2,406 27.5% (540) -22.4%Quiz-game-show 1,587 18.3% 1,208 13.8% 379 31.4%Sport 278 3.2% 328 3.8% (50) -15.2%Documentaries and others 3,575 41.1% 3,378 38.7% 197 5.8%News 1,283 14.8% 1,285 14.7% (2) -0.2%Fiction 101 1.2% 133 1.5% (32) -24.1%Others - 0.0% - 0.0% - 0.0%Total in-house productions 6,823 78.5% 6,333 72.5% 490 7.7%Total 8,690 100.0% 8,739 100.0% (49) -0.6%

1H 2013 1H 2012

On 15 January 2013 Mediaset stipulated a restructuring contract for two loans that were already in existence with Banca Intesa Sanpaolo for an overall total amount of EUR 400 million, the future reimbursements of which were concentrated within the year 2014. The refinancing contract regarding the loans establishes the splitting up of the new due dates into two parts, which are EUR 200 million in June 2016 and EUR 200 million in December 2017. The contract that has been stipulated has given a benefit, in the form of the lengthening of the average overall payment terms of the financial debt of Mediaset from 2.7 years to 3.3 years.

Outstanding events and operations during the first half

On 15 March 2013, RTI enters into an agreement for the sale of its branch concerned with the personnel and library of television rights and entertainment programs dedicated to an audience of children, to the Boing S.p.A. joint venture, including the update of the agreements related to the functioning of the joint venture of Boing S.p.A. with the Turner Group.

On 22 March 2013, the Spanish Council of Ministers passed a resolution that expressed the wish to carry out the execution of the ruling of the Spanish Supreme Court of 27 November 2012, in which there was declared null and void the resolution passed by the said Council of Ministers on 16 July 2010. The measure contained in that latter resolution assigned an additional channel to each of the television broadcasters, among whom there was Mediaset España, at that time called Gestevision Telecinco, and Sogecuatro, completing the space of four channels corresponding to a digital multiplex with integrated national coverage. Prior to this Mediaset España and Sogecuatro each managed three channels. Due to the impact of the executive nature of the aforesaid ruling Mediaset España, Antena 3, Net TV and Veo TV must, respectively, stop transmitting on the following number of channels: 2 channels out of 8 (Mediaset España), 3 channels out of 8 (Antena 3), 2 channels out of 4 (Veo TV) and 2 channels out of 4 Net TV. The measure introduced by the Spanish Government establishes that the aforesaid television broadcasters can, in any case, continue to transmit on the relative frequencies at least until the end of 2014, which is the timeframe established by the relative legislation that is currently force for the complete actuation of the process of liberalisation of


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the “Digital Dividend” frequencies, which is currently ongoing. Mediaset Espana has contested the judicial ruling before the Spanish “Tribunal Supremo”, both at its own individual level and at a collective level through the association of the Spanish national television companies (UTECA), maintaining that the aforesaid judgement was based on a mistaken interpretation, because the judgement in question did not sanction the annulment of the assignment of the additional channels, nor was this annulment sanctioned by the process of the liberalisation of the frequencies, i.e. the Digital Dividend.

On 12 April 2013, the Italian Communications Authority approves, with resolution 277/13/CONS, a new criterion regarding the financial offer, excluding from the tender competition all those operators who are already in possession of three or more multiplexes, (i.e. Mediaset, RAI and Telecom). Instead, admission to the tendering competition is granted only to the so-called “new entries” and Sky. As of the today, no date about the offer has been scheduled.

On 18 April 2013, EI Towers concludes the issuance of a “rated” Eurobond for an aggregate amount equal to Euro 230 million, a term of five years and a coupon of 3.875 per cent., resolved upon by the meeting of the Board of Directors of EI Towers held on 21 March 2013. The number of requests from the institutional investors totalled almost ten times the value of the amount. The bonds have been listed on the Irish Stock Exchange. On 24 April 2013, Fitch Ratings assigned the Bond Issue with a definitive ‘BBB’ rating, with a stable outlook.

In June, Mediaset launches a new thematic channel, “TopCrime”, specialised in investigation content.

In June, Mediaset España acquires free to air broadcasting rights for 25 Fifa World Cup Brazil 2014 matches including all of the Spanish team’s matches. These events will take place in Brazil between12 June and 13 July 2014.

On 27 June 2013, following the positive opinion of the Italian Communications Authority, the Ministry of Economic Development, authorises Elettronica Industriale by the conversion of the multiplex called “Mediaset 3” from DVB-H to DVB-T technology.


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Below there are given the analyses of the Consolidated Income Statement, Balance Sheet and Financial Situation, showing separately the contributions made to the Group results by the two geographical operational areas of Italy and Spain, as well as the breakdown of the revenues and the operating results of the main business operational segments that are included in these areas. As already reported on the next paragraph starting from this financial year there has been reviewed the disclosure information documentation with which there are presented and broken down the financial results for the Italy area and, consequently, the comparative data has been reworked.

Analyses of the results by geographical areas

The form and contents of the tables of the Income Statement, Balance Sheet and Financial Situation that are shown below are the same as those that were given in the Report on Operations of the Yearly Consolidated Financial Statements and, therefore, they are shown in a restated format compared to those contained in the subsequent Financial Statement Tables, for the purpose of highlighting some interim levels of the results and the Balance Sheet and Financial Situation groupings that are believed to be the most significant ones, in order to be able to truly understand the operating performances of the Group and its individual Business Units. For these balances, even if they are not specifically required, there are also supplied, in conformity with the indications contained in the Consob Communication number 6064293 of 28 July 2006 and in the Recommendation of the CESR (Committee of European Securities Regulators) of 3 November 2005 (CESR/o5-178b) regarding alternative performance indicators, i.e. “Non GAAP Measures”, the descriptions of the criteria used in preparing them and the appropriate notes regarding the references for the items contained in the mandatory tables.

The Income Statement information is given for the first half of both 2013 and 2012. The Balance Sheet information is supplied for the relative situations at 30 June 2013 and at 31 December 2012.

Financial results

In the following Consolidated Income Statement table by item type there are shown the interim results relative to the gross operating margin (EBITDA) and to the Operating Result (EBIT).

The gross operating margin (EBITDA) is the difference between the Consolidated net revenues and the operating costs, gross of the non-monetary costs relative to Depreciation, Amortisation and Write-downs, net of any renewal of the values, of both current and non-current assets

The Operating Result (EBIT) is obtained by deducting from the EBITDA the non-monetary costs relative to Depreciation, Amortisation and Write-downs, net of any reinstatement of the values, of both current and non-current assets.


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(Values in EUR millions)

2013 2012 2013 2012

Total consolidated net revenues 1,737.0 1,999.3 905.3 1,021.5Personnel expenses 273.3 301.3 132.4 153.6Purchases, services, other costs 804.3 931.3 435.1 472.7Operating costs 1,077.6 1,232.6 567.5 626.3EBITDA 659.4 766.7 337.9 395.2Rights amortisations 436.1 540.0 207.7 249.6Other amortisations and depreciations 89.7 81.2 50.0 38.5Amortisations and depreciations 525.8 621.2 257.6 288.2EBIT 133.6 145.6 80.2 107.1Financial income/(losses) (30.7) (29.5) (16.9) (16.2)Income/(expenses) from equity investments (8.7) 4.3 (6.3) 2.6EBT 94.2 120.5 57.0 93.5Income taxes (40.8) (51.4) (23.1) (48.9)Net profit from continuing operations 53.4 69.1 33.9 44.6Net profit from discontinued operations - - - -Minority interests in net profit (23.3) (26.4) (13.1) (12.0)

Mediaset Group net profit 30.1 42.8 20.8 32.7

Mediaset Group: Income Statement2nd Quarter1H

In the following table there are shown some significant components of the Group Income Statement, expressed as percentages of the consolidated net revenues.

2013 2012 2013 2012Total consolidated net revenues 100.0% 100.0% 100.0% 100.0%Operating costs 62.0% 61.7% 62.7% 61.3%EBITDA 38.0% 38.3% 37.3% 38.7%Amortisation, depreciation and write-downs 30.3% 31.1% 28.5% 28.2%EBIT 7.7% 7.3% 8.9% 10.5%EBT 5.4% 6.0% 6.3% 9.2%Net profit 1.7% 2.1% 2.3% 3.2%Tax rate (EBT %) -43.3% -42.7% -40.5% -52.3%

1H 2nd Quarter

There follows below an analysis of the Income Statement showing separately, at operational level, the financial contributions generated by the business activities in the two geographical areas of Italy and Spain.


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Below there is shown the Summarised Income Statement of the Mediaset Group, relative to its domestic business activities:

Analyses of the results by geographical areas: Italy


2013 2012 2013 2012

Total consolidated net revenues 1,310.4 1,525.8 675.0 765.6Personnel expenses 221.8 248.2 106.0 126.4Purchases, services, other costs 563.0 647.2 299.4 302.4Operating costs 784.8 895.5 405.4 428.8EBITDA 525.6 630.3 269.5 336.7Rights amortisations 357.8 444.8 171.8 208.1Other amortisations and depreciations 81.4 71.9 45.8 33.2Amortisations and depreciations 439.2 516.7 217.7 241.3EBIT 86.4 113.6 51.9 95.5Financial income/(losses) (29.7) (29.8) (16.3) (16.1)Income/(expenses) from equity investments (0.8) (0.7) (1.0) (2.2)EBT 55.8 83.1 34.6 77.2Income taxes (32.3) (51.4) (18.2) (49.0)Net profit from continuing operations 23.5 31.8 16.4 28.3Net profit from discontinued operations - - - -Minority interests in net profit (5.9) (4.6) (2.9) (2.5)Mediaset Group net profit 17.6 27.1 13.4 25.8

Italy: Income Statement2nd Quarter1H

As previously highlighted, the data for the first half of 2012 have been restated in order to take in, retroactively from 1 January the impacts, which on an overall basis amount to EUR 0.8 million of greater amortisation and depreciation, coming from the recalculation of the accounting book values and the future useful lives of some tangible and intangible fixed assets that took place in the context of the process of the definitive allocation of the assets and liabilities that were acquired as a result of the business combination between the “Tower” business owned by the Mediaset Group and the DMT Group, respectively, as shown within the Consolidated Financial Statements at 31 December 2012.

In the following table there are shown some significant components of the Income Statement, expressed as percentages of the Consolidated Net Revenues.

2013 2012 2013 2012Total consolidated net revenues 100.0% 100.0% 100.0% 100.0%Operating costs 59.9% 58.7% 60.1% 56.0%EBITDA 40.1% 41.3% 39.9% 44.0%Amortisation, depreciation and write-downs 33.5% 33.9% 32.3% 31.5%EBIT 6.6% 7.4% 7.7% 12.5%EBT 4.3% 5.4% 5.1% 10.1%Net profit 1.3% 1.8% 2.0% 3.4%Tax rate (EBT %) 57.9% 61.8% 52.7% 63.4%

1H 2nd Quarter


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The financial results that have been achieved by the Group in Italy are shown below and are broken down by business activity segments.

Integrated Television Activities, which include the free and pay television activities and the ancillary activities that are connected to them, consisting of the web, teleshopping, publishing activities, licensing and merchandising and movie production and distribution.

EI Towers, which is relative to the activities of hosting, maintenance and management services within the radio/television networks sector and that of wireless telecommunications and that are headed up by the quoted company EI Towers S.p.A., an entity that has resulted from the merger that was finalised at the beginning of 2012, between the “Tower” activities of the Mediaset Group and DMT.

In the following two summary tables there are given the breakdowns of the Revenues and the Operating Result for the business activities sectors that have been identified.

RevenuesBusiness segments breakdown 2013 2012 2013 2012

Integrated Television Operations 1,283.9 1,498.0 (214.1) -14.3% 661.4 751.2 (89.8) -12.0%

EI Towers 116.4 117.0 (0.6) -0.5% 58.6 60.9 (2.3) -3.8%

Eliminations (89.9) (89.2) (0.7) 0.8% (45.1) (46.5) 1.4 3.0%

Total 1,310.4 1,525.8 (215.4) -14.1% 675.0 765.6 (90.6) -11.8%

% changes1H % changeschanges 2nd Quarter changes

Operating ResultBusiness segments breakdown 2013 2012 2013 2012

Integrated Television Operations 56.6 89.7 (33.1) -36.9% 36.3 82.9 (46.6) -56.2%

EI Towers 29.8 23.9 5.9 24.7% 15.6 12.6 3.0 23.7%

Total 86.4 113.6 (27.2) -23.9% 51.9 95.5 (43.6) -45.7%

% changes1H

% changes2nd Quarter

changeschanges

Below there are shown the Income Statements of the two business activity areas. In the period being examined both of them have achieved an improvement in their financial margins, compared to those for the same period of the previous financial year.

Integrated Television Operations 2013 2012 changes % changes 2013 2012 changes % changes

Gross advertising revenues 1,061.7 1,286.3 (224.6) -17.5% 560.0 663.6 (103.6) -15.6%Agency discounts (155.6) (189.7) 34.0 17.9% (82.1) (97.9) 15.9 16.2%Total net advertising revenues 906.1 1,096.6 (190.5) -17.4% 477.9 565.6 (87.7) -15.5%

Revenues from subscriptions/pre-paid cards 280.2 260.1 20.0 7.7% 135.7 129.0 6.7 5.2%Other revenues 97.6 141.2 (43.6) -30.9% 47.9 56.5 (8.7) -15.3%Total Revenues 1,283.9 1,498.0 (214.1) -14.3% 661.4 751.2 (89.8) -11.9%

Personnel expenses 199.6 224.5 (24.9) -11.1% 95.4 114.1 (18.7) -16.4%Operating costs 522.5 602.1 (79.6) -13.2% 279.2 278.8 0.4 0.1%TV and movie rights amortisation 357.8 444.8 (87.0) -19.6% 171.8 208.1 (36.2) -17.4%Other amortisation and depreciation 59.1 49.4 9.7 19.6% 34.5 21.6 12.9 59.5%Inter-segment costs 88.3 87.5 0.8 0.9% 44.2 45.7 (1.5) -3.2%Total Costs 1,227.3 1,408.4 181.1 12.9% 625.2 668.3 (43.2) -6.5%

Operating result 56.6 89.7 (33.1) -36.9% 36.3 82.9 (46.6) -56.2%

% on revenues 4.4% 6.0% 5.5% 11.0%

1H 2nd Quarter


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The notable reduction in the Revenues from the Television Business was the result, in the half-year just finished, of the progress and trend of the advertising revenues that have already been commented on previously. On the other and in the same period there was a significant growth rate of 7.7% in the characteristic revenues of the Mediaset Premium offer. The reduction in the value of the other revenues is, more or less, totally relative to the drop in the incomes generated by movie distribution which, in the opening months of the year 2012, benefited from the presence of a larger number of movies distributed to the movie theatres, some of which achieved notable success with the public and positioned themselves among the leading positions in the classification of the top 10 most seen movies at the beginning of 2012.

The trend of the overall costs of the television business has continued to benefit, also during this first half-year, from the actions that have been taken to make a structural reduction in the functioning costs, which have been undertaken in the context of the ongoing three-year efficiency plan. Specifically, the operating costs, which include the personnel costs and the other operating costs, i.e. purchases, the supplies of services and others, have gone down by an amount that is equivalent to 12,6%, compared to the figure for the same period of the financial year 2012. The lower costs for the amortisation of television rights are a reflection, as well as of the impacts from lower investment levels in rights also of the impacts linked to the adjustments made to the book values of the sporting rights, which were carried out as a result of the impairment tests carried out on these assets at 31 December 2012 and to the lower amounts of the amortisation related to the progress and trend of the revenues from the movie rights distribution business. The increase in the totality of the item Other amortisation and depreciation are mainly relative to the higher amounts that have been posted to provisions in the relative accounting period for the risks on receivables.

(values in EUR millions)

EI Towers 2013 2012 changes % changes 2013 2012 changes % changes

Revenues towards third parties 26.5 27.8 (1.3) -4.7% # 13.5 14.4 (0.9) -5.9%Inter-segment revenues 89.9 89.2 0.7 0.8% # 45.1 46.5 (1.4) -3.0%

Total revenues 116.4 117.0 (0.6) -0.5% 58.6 60.9 (2.3) -3.7%

Personnel expenses 22.2 23.7 1.6 6.7% # 10.6 12.3 1.7 13.6%Operating Costs 40.5 45.1 4.6 10.2% # 20.2 23.6 3.4 14.4%Other amortisation and depreciation 22.3 22.5 0.2 0.9% # 11.3 11.6 0.2 2.0%Inter-segment costs 1.6 1.7 0.1 7.3% 0.8 0.8 (0.1) -8.5%Total costs 86.5 93.1 6.5 7.0% 43.0 48.3 5.3 10.9%

Operating result 29.8 23.9 5.9 24.7% 15.6 12.6 3.0 23.7%-

% on revenues 25.6% 20.4% 26.6% 20.7%

1H 2nd Quarter

In the half-year in question the EI Towers Group achieved a growth rate amounting to 24.7% of its operating result. This was mainly achieved through the reduction of the operating costs and this also enabled the operating profitability grow up to the figure of increased 25.6%. The trend of the revenues recorded the results of the updates to the contracts that govern the services of hosting, support and maintenance, logistics, the usage of the transmission infrastructures and the design and planning carried out for subsidiary company Elettronica Industriale, while the revenues from other customers, relative to the services of hosting, maintenance and logistics towards other broadcasting and wireless telecommunications operators, were mainly impacted by the budgeted reduction of the services supplied to the television customers, which is inherent to the process of the digitalising of the television signal that was finalised during the third quarter of the year 2012.


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Below there is shown the Income Statement of the Spanish business activities, which is the same as the consolidated data of the Mediaset Group España.

Analyses of the results by geographical areas: Spain


2013 2012 2013 2012

Total consolidated net revenues 427.0 474.0 230.4 256.0Personnel expenses 51.6 53.1 26.4 27.2Purchases, services, other costs 241.7 284.5 135.7 170.3Operating costs 293.2 337.6 162.1 197.6EBITDA 133.8 136.4 68.3 58.4Rights Amortisations 78.3 95.1 35.9 41.6Others amortisations and depreciations 8.4 9.3 4.1 5.3Amortisations and depreciations 86.6 104.4 40.0 46.8EBIT 47.2 32.0 28.4 11.6Financial income/(losses) (1.0) 0.3 (0.6) (0.1)Income/(expenses) from equity investments (7.8) 5.0 (5.4) 4.8EBT 38.4 37.3 22.4 16.3Income taxes (8.5) - (4.9) -Net profit from continuing operations 29.8 37.3 17.5 16.3Net profit from discontinued operations - - - -Minority interests in net profit 0.3 0.3 0.1 0.1

- -Mediaset Group net profit 30.1 37.6 17.6 16.4

1H 2nd QuarterSpain: Income Statement

In the following table some of the most significant components of the Income Statement of the Spanish business activities are shown as percentages of their Consolidated Net Revenues.

2013 2012 2013 2012Total consolidated net revenues 100.0% 100.0% 100.0% 100.0%Operating costs 68.7% 71.2% 70.4% 77.2%EBITDA 31.3% 28.8% 29.6% 22.8%Amortisation, depreciation and write-downs 20.3% 22.0% 17.4% 18.3%EBIT 11.1% 6.8% 12.3% 4.5%EBT 9.0% 7.9% 9.7% 6.4%Net profit 7.0% 7.9% 7.6% 6.4%Tax rate (EBT %) 22.1% 0.0% 21.9% 0.0%Tax rate (EBT %)

1H 2nd Quarter


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The following table shows the details of the revenues and the costs of the Mediaset Group España highlighting their most significant components:


2013 2012%

change 2013 2012

%change

TV advertising revenues 387.9 459.1 -15.5% 208.7 247.1 -15.6%Other advertising revenues 30.3 19.4 56.2% 18.3 10.1 81.1%Gross advertising revenues 418.2 478.5 -12.6% 227.0 257.2 -11.8%Agency discounts (24.9) (28.3) 12.3% (13.5) (15.4) 11.9%Net advertising revenues 393.3 450.1 -12.6% 213.4 241.9 -11.7%Other revenues 33.7 23.9 41.2% 17.0 14.2 20.1%Total net consolidated revenues 427.0 474.0 -9.9% 230.4 256.0 -10.0%

1H 2nd Quarter

The item Other revenues mainly refers to the revenues coming from the distribution of movie joint productions, to the revenues coming from gambling activities, merchandising and incomes coming from the telephone traffic that originates from audience interactivity regarding some television productions. The change for the accounting period, amounting to 41.2%, mainly refers to the increase in the revenues coming from movie distribution.

2013 2012 changes % changes 2013 2012 changes % changes

Operating costs 379.9 442.0 -62.1 -14.0% 202.1 244.4 -42.3 -17.3%

Personnel expenses 51.6 53.1 -1.5 -2.9% 26.4 27.2 -0.8 -3.0%

Purchases, services, other costs 241.7 284.5 -42.8 -15.1% 135.7 170.3 -34.6 -20.3%

TV and movie rights amortisation 78.3 95.1 -16.8 -17.7% 35.9 41.6 -5.7 -13.7%

Other amortisation and write-downs 8.4 9.3 -0.9 -9.6% 4.1 5.3 -1.2 -21.8%

1H 2nd Quarter

Also for the first half of 2013 the progress and trend of the total costs of the Mediaset Group España highlights the actions that have been taken to control and limit the operating costs. In fact, the operating costs have gone down by 14.1% compared to their value for the same accounting period of the previous financial year.

At 30 June 2013, the operating result of the Spanish geographical area reached the figure of EUR 47.2 million, compared to the figure of EUR 32.0 million at the same date in the year 2012.

Below there is given the analysis of the other components of the Income Statement, which has been carried out with reference to them for the total Mediaset Group.


Financial income/(losses) -30.7 -29.5 -1.2 -4.0% -16.9 -16.2 -0.7 -4.5%

1H 2nd Quarter


Result from equity investments -8.7 4.3 -13.0 n.s. -6.3 2.6 -9.0 n.s.

1H 2nd Quarter


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The worsening of the results of the equity investments is mainly due to part of the loss belonging to the Spanish Group that was generated, during the accounting period, by the equity investment that is owned by Mediaset España in the company Digital Plus. Also, in the first half-year of 2012 there was included within this item the capital gain, amounting to EUR 2.1 million, which came from the sale of the remaining amounts of the Endemol debt.


EBT 94.2 120.5 -26.2 -21.8% 57.0 93.5 -36.5 -39.1%

Income taxes -40.8 -51.4 10.5 20.5% -23.1 -48.9 25.8 52.8%Tax Rate (%) -43.3% -42.7% -40.6% -52.3%

Net profit from discontinued operations 0.0 0.0 0.0 n.s. 0.0 0.0 0.0 n.s.

Minority interests in net profit -23.3 -26.4 3.1 11.7% -13.1 -12.0 -1.1 -9.0%

Group net profit 30.1 42.8 -12.7 -29.7% 20.8 32.7 -11.9 -36.5%

1H 2nd Quarter

The financial result for the accounting period is shown net of the income taxes calculated according to the reporting criterion established by the IAS 34 and by using the tax rate that is forecasted to be in force at the closing date of the current financial year. As a result of the lower EBT (and even considering the effects of non recurring expenses in the first half of 2012) the consolidated tax rate is affected (with reference to the same period of the previous year) in Italy by the higher weight of IRAP non deductible expenses, and in Spain by the absence during the period of fiscal benefits related to the deductibility of investments in audio-visual works envisaged by the local tax administration due to the different time scheduling planned for this activity for the current period compared to the previous year.

The Financial Result that belongs to the minority shareholders is relative to the amounts due to them that are contained within in the consolidated results of Mediaset España and EI Towers.

Below there are given the tables of the

The Balance Sheet and Financial Situations

Group Summary Balance Sheet

Therefore, these tables differ compared to the Balance Sheet layout that is contained in the mandatory tables of the Financial Statements, which are prepared according to the split between the current and the non-current assets and liabilities.

and by geographical area, shown in a reclassified format for the purpose of highlighting the two macro groupings consisting of the Net Capital Invested and of the Net Financial Position, where this latter figure consists of the Gross Financial Debt reduced by Cash and other available liquidity equivalents and by Other financial assets. The details relative to the items in the Financial Statements that form part of the calculation of the Net Financial Position are shown in the following explanatory note number 4.7.

Within the item Equity investments and other financial assets there are included the assets inserted in the table of the Balance Sheet and Consolidated Financial Situation within the items called Equity investments in affiliated and jointly controlled companies and in Other financial assets but limited, for this latter item, to the equity investments and to the non-current financial receivables, with the exclusion of the financial assets relative to coverage financial derivatives that are included in the item Net Working Capital and Other Assets/Liabilities.


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The item Net Working Capital and other assets and liabilities includes the current assets (with the exclusion of cash and cash equivalents and the current financial assets that are included in the Net Financial Position),the other current liabilities the assets and liabilities for prepaid and deferred taxes, the non-current assets available for sale, the funds for risks and charges, the payables to suppliers and the taxation payables.


Balance Sheet Summary 30/06/2013 31/12/2012

TV and movie rights 2,132.3 2,284.1

Goodwill 912.7 912.3

Other tangible and intangible non current assets 1,267.8 1,311.7

Equity investments and other financial assets 536.8 525.9

Net working capital and other assets/(liabilities) (204.9) (258.2)

Post-employment benefit plans (90.4) (97.9)

Net invested capital 4,554.4 4,677.9

Group shareholders' equity 2,155.3 2,121.9Minority interests 862.7 843.2Total Shareholders' equity 3,018.0 2,965.1

Net financial position 1,536.4 1,712.8

Below there are shown separately, for the two relative accounting periods, the details of the Balance Sheet situations of the two geographical areas of Italy and Spain.

It is highlighted that the Balance Sheet situation relative to the assets in Italy includes, in the item called Equity investments and other financial assets, the posted book value of the controlling interest owned in Mediaset España and the amount of the equity investment of 25% owned in Mediacinco Cartera, consolidated on a line-by-line basis by Mediaset España which, in its turn, owns the controlling interest in it of 75%. These equity investments are then eliminated at the time of the consolidation.


Balance Sheet Summary (geographical breakdown)30/06/2013 31/12/2012 30/06/2013 31/12/2012

TV and movie rights 1,871.5 2,056.4 261.0 227.9Goodwill 262.2 261.8 287.4 287.4Other tangible and intangible non current assets 975.3 1,020.9 292.4 290.8Equity investments and other financial assets 1,025.7 1,006.2 463.8 472.4Net working capital and other assets/(liabilities) (275.7) (326.9) 70.8 68.7Post-employment benefit plans (90.4) (97.9) - -Net invested capital 3,768.6 3,920.5 1,375.4 1,347.2

Group shareholders' equity 2,125.4 2,104.6 1,439.0 1,408.4Minority interests 31.1 29.4 12.2 12.5Total Shareholders' equity 2,156.5 2,134.0 1,451.2 1,420.9

Net financial position 1,612.1 1,786.5 (75.8) (73.7)

Italy Spain


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In the following table, the Summarised Balance Sheet situation of the Group at 30 June 2013 is broken down, for the purpose of highlighting the impacts arising from the line-by-line consolidation of Mediaset España.


Balance Sheet Summary (geographical breakdown)

Italy Spain Eliminations/Adjustments

Mediaset Group

TV and movie rights 1,871.5 261.0 (0.2) 2,132.3Goodwill 262.2 287.4 363.2 912.7Other tangible and intangible non current assets 975.3 292.4 1,267.8Equity investments and other financial assets 1,025.7 463.8 (952.7) 536.8Net working capital and other assets/(liabilities) (275.7) 70.8 (204.9)Post-employment benefit plans (90.4) (90.4)Net invested capital 3,768.6 1,375.4 (589.7) 4,554.4Group shareholders' equity 2,125.4 1,439.0 (1,409.1) 2,155.3Minority interests 31.1 12.2 819.4 862.7Total Shareholders' equity 2,156.5 1,451.2 (589.7) 3,018.0

Net financial debt 1,612.1 (75.8) 1,536.4

In the following table there is shown the summarised cash flow statement by geographical areas, for the purpose of being able to evaluate the contribution to the financial movements during the two periods. Also this table is shown in a reclassified format, compared to the layout established by IAS 7, which is used for laying out the mandatory cash flow statement table, highlighting the changes in the Net Financial Position which, for the Group, represents the most significant indicator regarding its ability to be able to face up to its financial obligations.


Cash Flow Statementas at 30 June 2013 2012 2013 2012 2013 2012

Net Financial Position at the beginning of the year (1,712.8) (1,775.5) (1,786.5) (1,801.9) 73.7 26.5

Free Cash Flow 178.7 303.1 177.4 315.7 1.3 (12.6) - Cash Flow from operating activities (*) 582.6 693.2 461.2 556.3 121.4 136.9 - Investments in fixed assets (376.4) (469.6) (254.0) (334.1) (122.4) (135.5) - Disposals of fixed assets 42.6 0.6 42.4 0.4 0.2 0.3 - Changes in net working capital and other current assets/liabilities (70.1) 78.9 (72.1) 93.2 2.1 (14.3)

Change in the consolidation perimeter - (115.2) - (115.2)

Equity investments/Invesment in other financial assets 0.2 23.1 0.5 (24.6) (0.3) 47.7

Cashed-in dividends 1.7 13.9 0.6 24.0 1.1 13.2

Dividends paid (4.1) (145.6) (4.1) (113.6) (55.3)

Financial Surplus/Deficit 176.4 79.4 174.4 86.3 2.1 (6.9)

Net Financial Position at the end of the period (1,536.4) (1,696.1) (1,612.1) (1,715.7) 75.8 19.6

(*): Net profit +/- minority interests + amortisations +/- net provisions +/- valuation of investments recorded using the net equity method + changesin valuation reserves - gains/losses on equity investments

Italy SpainMediaset Group

The characteristic generation of cash of the Group, i.e. its free cash flow amounted to EUR 178.7 million. Specifically, in Italy there was recorded a positive free cash flow generation that amounted to EUR 177.4 million brought about by the benefits from the controlling and limiting of the costs and the investments.


20

The increases in the fixed assets that can be seen in the above cash flow statement are summarily detailed in the following table:

Increase in fixed assets

from 1/1 to 30/6 2013 2012 2013 2012 2013 2012

Investments in TV and movie rights (342.2) (449.9) (230.6) (290.1) (111.6) (159.8)

Changes in advances on TV rights (17.1) 44.5 (8.9) 15.7 (8.2) 28.8

TV and movie rights: investments and advances (359.3) (405.4) (239.5) (274.4) (119.8) (131.0)

Investments in other fixed assets (17.1) (64.3) (14.5) (59.8) (2.6) (4.5)

Total investments in fixed assets (376.4) (469.6) (254.0) (334.1) (122.4) (135.5)

Mediaset Group Italy Spain

On the other hand, the disposal of fixed assets refers for ER 38.3 million (with counterpart for EUR 33.7 million on the item Changes in net working capital and other current assets/liabilities) to the book value of the tv rights library sold to the affiliated company Boing S.p.A. in the context of the operation concerning the sale to this latter of the company branch with the same name which took place on 1 April 2013.

In the same period of the previous year, with a higer free cash flow, also the cash outs related to the distribution of dividends of Mediaset and Mediaset España, as well as the consolidation of the net financial debt for EUR 115.2 million (reported on the item Changes in the consolidation perimeter) of DMT and Towertel (which were the subjects of the business combination that became effective at the beginning of the previous year), affected the change in the net financial debt.

The Dividends distributed during the first half-year of 2013 are relative to the profits that were distributed to its minority shareholders by the subsidiary company EI Towers.

Beside, during the first half of the previous year, some operations linked to the trade of Equity investments and other financial assets had a positive impact on the financial dynamic of the period for a total net amount of EUR 23.1 million. Particularly, EUR 63.6 million coming from the sale of the stake of the senior debt of Endemol had been cashed-in, as well as EUR 39.7 million for the acquisition of a further stake of 5% of EI Towers (following the effectiveness of the business combination generated by the merger between EI Towers and DMT) had been cashed-out.

The employee ending headcount of the Mediaset Group at 30 June 2013 amounted to 5,828 people (6,253 at 30 June 2012 and 5,908 at 31 December 2012).

Group Employees

The change compared to the figure at 31 December 2012 has been brought about by the substantial completion, which took place during the opening months of the financial year, of the manpower reduction plans that were formalised in Italy during the last part of 2012.

The following tables show the changes in the employee headcount numbers, split between labour categories, within the two geographical business areas:

Number of employees (including temporary staff)as at 30 June 2013 2012 2013 2012Managers 307 360 120 121Journalists 342 353 169 175Middle managers 882 916 81 88Office workers 2,920 3,191 938 964Industry workers 46 62 23 23

Total 4,497 4,882 1,331 1,371

ITALY SPAIN


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Average workforce (including temporary staff)1H 2013 2012 2013 2012Managers 313 363 119 119Journalists 339 360 171 176Middle managers 885 921 82 89Office workers 2,985 3,124 933 966Industry workers 57 147 23 23

Total 4,579 4,915 1,328 1,3730 0

ITALY SPAIN

The transactions carried out with related parties cannot be classed as either atypical or unusual, because they fall within the categories of the normal business activities of the Group companies. All these transactions are regulated at normal arm’s length market conditions, taking into account the characteristics of the goods and services supplied regarding them. The detailed information regarding the Income Statement, Balance Sheet and financial impacts of the transactions with parent, affiliated, jointly controlled and associated companies and entities, including those that are required to be disclosed by the Consob Communication of 29 July 2006, are shown in the following explanatory note number 6.

Transactions with related parties

Pursuant to art. 3 of CONSOB Resolution no. 18079 of 20 January 2012, the Board of Directors on 13 November 2012 has chosen to adhere to the opt-out provisions of Articles. 70, paragraph 8, and 71, paragraph 1 - bis of Consob Regulation no. 11971/99 and subsequent amendments and additions, thus taking advantage of the possibility waive their obligations to publish information documents prepared in connection with significant operations such as mergers, spin-offs, capital increases by contributions in kind, acquisitions and disposals.

Opt-out of obligation for publication of information documents in connection with significant operations

During the month of July, having taken into consideration the prolonged situation of stalemate regarding the financial and company restructuring process of the Endemol Group, which was started up during the year 2011, Mediaset Group, through its subsidiary company Mediacinco Cartera S.A., decided to sell those amounts, which had already been totally written off in its accounting books, that it still owned of the second lien debt and the amounts that it owned of the share capital of Edam, cashing in the remaining liquidity that was redistributed by this latter company, for the amount of EUR 1.5 million.

Significant events that took place after 30 June 2013

The project of partial demerger of Towertel S.p.A. into EI Towers S.p.A. has been approved on 30 July by respective Board of Directors. This demerger is finalized to a better operating integration of the Group, concentrating in Towertel S.p.A. the infrastructures dedicated to “Telecom” operators and spinning off in the favor of EI Towers S.p.A. the infrastructures dedicated to “Broadcast” operators, with corresponding accounting assets and liabilities. This demerger will be effective January 1, 2014.


22

The Group has entered the second half of the year while being fully aware that, also for the following foreseeable months, its business activities will continue to be heavily impacted by the evolution of the general overall macroeconomic situation. Specifically, the prospects for greater stability of the economic climate in the Euro zone must be checked and verified with respect to the impacts on them that are linked to any eventual application of the guidelines, which were recently announced by the FED, regarding the possibility of a future reduction, even if it is carried out gradually, of those monetary stimulus actions that have hitherto supported the growth of the US economy and also a check regarding the impact on them of the outcome of the German elections at the end of September.

Risks and uncertainties for the remaining part of the financial year

Italy and Spain continue to be among those economic areas that are still the weakest and for which there have to be again confirmed, for the current year, estimates of reductions in real terms in their GDP, high levels of unemployment and a significant lack of dynamism in private sector consumption. These factors, taken all together, do not constitute the best basis for an assumption that are able, in the short term, to trigger the start of an upward trend of the advertising investments.

In this context the Group will continue to operate in the pursuance of its primary objective of consolidating its own integrated multiplatform television system, while maintaining and, if possible, increasing its advertising market share by leveraging its indisputable audience leadership position regarding its reference commercial targets and also, in Italy, increasing the coverage of its Pay TV offer through the launching of the innovative on demand service called “Infinity”, which is forecasted to take place before the end of the year.

With reference to the procedure for the assignment of new frequencies to television broadcasters in Italy, which has been reported on in detail in the section called Important events and operations in the first half-year, as of today there still remains a significant level of uncertainty regarding the timeframe for the start-up of the assignment competition, open only to new entries and to SKY.

A detailed analysis of the risks to which the Group is structurally exposed when carrying out its business activities, coming both from independent external factors and from strategic choices, as well as the internal management and operational risks is contained in the specific section regarding them in the Report on Operations of the Consolidated Financial Statements at 31 December 2012 to which reference should be made, as well as to the following section called Forecast for the year that is contained in this Report.

Lastly, it is highlighted that the consolidated results will, as always, be subjected to those impairment tests that are carried out on a yearly basis for the goodwill and the other company assets. These valuation processes will be carried out in a complete manner, at the closing date of the financial year, because at that time there will also be available the relevant information that is contained in the updated multiyear plans of the respective Cash Generating Units. However, it is stated that, at the closing date of this half yearly report, there were not found, based on the information available at that date, any impairment risks regarding these assets.


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FORECAST FOR THE YEAR

The trend in advertising sales in July, both in Italy and Spain, showed a slight improvement compared with the negative trend during the first half.

In Italy, Mediaset's advertising sales in July, for the first time in almost two years, showed an improvement on the same period of 2012, reaching around +4%. On current visibility, also August is expected to show an increase on the same month of last year.

These first important signals of improved dynamism reinforce the expectations for a stabilisation in the market in the second half of the year. However, the poor visibility and the still widespread economic uncertainty make it impossible to make reliable predictions on the trend in advertising revenues for the full year.

In Italy, the Group remains focused on the implementation of the three-year (2012-2014) cost reduction plan. In this regard, the results achieved last year and in the first six months of 2013 confirm the expectation of achieving the announced structural reduction target ahead of schedule, ensuring that in the current year there will be a further significant improvement in the level of cash generation.

For the Board of Directors the Chairman

Mediaset Group Interim Consolidated Financial Statements

at 30 June 2013

26

MEDIASET GROUP

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR million)

Notes 30/6/2013 31/12/2012

ASSETS

Non current assets

Property, plant and equipment 4.1 570.1 606.6

Television and movie rights 4.1 2,132.3 2,284.1

Goodwill 4.1 912.7 912.3

Other intangible assets 4.1 697.7 705.2

Investments in associates 4.2 493.1 511.0

Other financial assets 4.2 44.7 17.3

Deferred tax assets 4.3 541.7 565.9

TOTAL NON CURRENT ASSETS 5,392.2 5,602.4

Current assets

Inventories 37.6 54.3

Trade receivables 837.2 924.2

Tax receivables 83.8 85.9

Other receivables and current assets 320.4 307.1

Current financial assets 4.7 24.9 24.7

Cash and cash equivalents 4.7 231.9 221.8

TOTAL CURRENT ASSETS 1,535.8 1,618.0

Non current assets held for sale - -

TOTAL ASSETS 6,928.0 7,220.5

27

MEDIASET GROUP

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR million)

Notes 30/6/2013 31/12/2012

LIABILITIES AND SHAREHOLDERS' EQUITY

Share capital and reserves

Share capital 614.2 614.2

Share premium reserve 275.2 275.2

Treasury shares (416.7) (416.7)

Other reserves 4.4 504.7 504.9

Valuation reserve 4.5 1.7 0.6

Retained earnings 1,146.0 1,430.7

Net profit for the period 30.1 (287.1)

Group Shareholders' Equity 2,155.3 2,121.9

Minority interests in net profit 23.3 37.3

Minority interests in share capital, reserves and retained earnings 839.4 805.9

Minority interests 862.7 843.2

TOTAL SHAREHOLDERS' EQUITY 3,018.0 2,965.1

Non current liabilities

Post-employment benefit plans 90.4 97.9

Deferred tax liabilities 65.6 67.8

Financial liabilities and payables 4.7 1,145.2 1,212.3

Provisions for non current risks and charges 4.6 103.2 110.0

TOTAL NON CURRENT LIABILITIES 1,404.3 1,488.0

Current liabilities

Financial payables 4.7 588.8 686.3

Trade and other payables 1,476.0 1,567.8

Provisions for current risks and charges 4.6 71.2 115.8

Current tax liabilities 46.7 57.7

Other financial liabilities 4.7 58.2 51.8

Other current liabilities 264.7 287.9

TOTAL CURRENT LIABILITIES 2,505.7 2,767.4

Liabilities related to non current assets held for sale - -

TOTAL LIABILITIES 3,910.0 4,255.4

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,928.0 7,220.5

28

MEDIASET GROUP

INTERIM CONSOLIDATED INCOME STATEMENT (EUR million)

STATEMENT OF INCOMENotes

1H 2013 1H 2012 (*)

Sales of goods and services 1,712.4 1,986.6Other revenues and income 24.5 12.8

TOTAL NET CONSOLIDATED REVENUES 1,737.0 1,999.3

Personnel expenses 273.3 301.3Purchases, services, other costs 804.3 931.3Amortisation, depreciation and write-downs 525.8 621.2Impairment losses and reversal of impairment on fixed assets - -

TOTAL COSTS 1,603.4 1,853.8

EBIT 133.6 145.6

Financial expenses 4.8 (30.7) (29.5)Income/(expenses) from equity investments (8.7) 4.3

EBT 94.2 120.5

Income taxes 4.9 40.8 51.4

NET PROFIT FROM CONTINUING OPERATIONS 53.4 69.1

Net Gains/(Losses) from discontinued operations - -

NET PROFIT FOR THE PERIOD 53.4 69.1

Attributable to:

- Equity shareholders of the parent company 30.1 42.8

- Minority Interests 23.3 26.4

Earnings per share 4.10- Basic 0.03 0.04

- Diluted 0.03 0.04 (*) 1H 2012 restated results

29

MEDIASET GROUP

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR million)

Note

PROFIT OR (LOSS) FOR THE PERIOD 53.4 69.1

OTHER COMPREHENSIVE INCOME RECYCLED TO PROFIT AND LOSS 3.6 (5.0)

Changes arising from translating the financial statement of foreign operations - -

Effective portion of gains and losses on hedging instruments (cash flow hedge) 4.5 5.2 (6.9)

Gains and losses on available-for-sale financial assets - -

Other gains and losses of associates valued by equity method 4.4 (0.2) -

Other gains and losses - -

Tax effects 4.5 (1.4) 1.9

OTHER COMPREHENSIVE INCOME NOT RECYCLED TO PROFIT AND LOSS (0.6) (4.2)

Changes in revaluation surplus - -

Actuarial gains and losses on defined benefit plans 4.5 (0.8) (5.8)

Other gains and losses of associates valued by equity method - -

Other gains and losses - -

Tax effects 4.5 0.2 1.6

TOTAL OTHER COMPREHENSIVE INCOME FOR THE PERIOD NET OF TAX EFFECTS (B) 3.0 (9.2)

TOTAL COMPREHENSIVE INCOME (A)+(B) 56.4 59.9

attributable to:

- owners of the parent 33.1 33.7

- non controlling interests 23.3 26.2

1H 2013 1H 2012 (*)

(*) 1H 2012 restated results

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MEDIASET GROUP

INTERIM CONSOLIDATED CASH FLOW STATEMENT (EUR million)

1H 2013 1H 2012 (*)

CASH FLOW FROM OPERATING ACTIVITIES:Operating profit before taxation 133.6 145.6+ Depreciation and amortisation 525.8 621.2+ Other provisions and non-cash movements 2.6 (11.1)+ Change in trade receivables 87.0 76.2+ Change in trade payables 42.6 (74.0)+ Change in other assets and liabilities (78.5) 70.0- Interests (paid)/received (10.1) (1.1)- Income tax paid (39.6) (31.1)

Net cash flow from operating activities [A] 663.4 795.8

CASH FLOW FROM INVESTING ACTIVITIES:Proceeds from the sale of fixed assets 4.1 0.6Proceeds from the sale of equity investments - -Interests (paid)/received - (0.1)Purchases in television rights (342.2) (449.9)Changes in advances for television rights (17.1) 44.5Purchases of other fixed assets (17.1) (64.3)Equity investments (1.2) (6.0)Changes in payables for investing activities (133.8) (27.0)Proceeds/(Payments) for hedging derivatives 8.2 2.9Changes in other financial assets 7.1 117.7Dividends received 2.7 13.9Business Combinations net of cash acquired - 2.2Changes in consolidation area - (39.7)

Net cash flow from investing activities [B] (489.3) (405.2)

CASH FLOW FROM FINANCING ACTIVITIES:Changes in financial liabilities (353.5) (125.7)Corporate bond 230.0 -Dividends paid (4.1) (145.6)Changes in other financial assets/liabilities (1.5) (0.6)Interests (paid)/received (34.9) (32.1)

Net cash flow from financing activities [C] (164.0) (304.0)

CHANGE IN CASH AND CASH EQUIVALENTS [D=A+B+C] 10.1 86.6

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD [E] 221.8 113.9

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD [F=D+E] 231.9 200.5

(*) 1H 2012 restated results

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MEDIASET GROUP

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

(EUR million)

Share Share Legal Company's Valuation Retained Profit/ Total Total TOTALcapital premium reserve treasury reserve earnings/ (loss) Group shareholders' SHARE-

reserve and other shares (accumulated for the shareholders' equity HOLDERS'reserves losses) period equity attributable EQUITY

to minority interests

Balance at 1/1/2012 614.2 275.2 436.4 (416.7) 26.4 1,317.8 225.0 2,478.3 817.4 3,295.7

Business Combinations - - 105.3 - - - - 105.3 3.5 108.8

Allocation of the parent company's 2011 net profit - - - - - 225.0 (225.0) - - -

Dividends paid by the parent company - - - - - (113.6) - (113.6) (32.0) (145.6)

Stock Option plan valuation - - - - 1.0 - - 1.0 0.4 1.4

(Purchase)/sale of treasury shares - - - - - - - - - -

Profits/(losses) from negotiation of treasury shares - - - - - - - - - -

Change in consolidation perimeter - - (39.2) - - - - (39.2) (0.5) (39.7)

Other changes - - - - - (0.1) - (0.1) (0.2) (0.3)

Comprehensive income/(loss) - - - - (9.1) - 42.8 33.7 26.2 59.9

Balance at 30/06/2012 (*) 614.2 275.2 502.5 (416.7) 18.3 1,429.1 42.8 2,465.4 814.9 3,280.3

Balance at 1/1/2013 614.2 275.2 504.9 (416.7) 0.6 1,430.7 (287.1) 2,121.9 843.2 2,965.1

Allocation of the parent company's 2012 net profit - - - - - (287.1) 287.1 - - -

Dividends paid by the parent company - - - - - - - - (4.2) (4.2)

Stock Option plan valuation - - - - (2.1) 2.3 - 0.2 0.1 0.3

(Purchase)/sale of treasury shares - - - - - - - - - -

Profits/(losses) from negotiation of treasury shares - - - - - - - - - -

Change in consolidation perimeter - - - - - (0.1) - (0.1) - (0.1)

Other changes - - - - - 0.2 - 0.2 0.3 0.5

Comprehensive income/(loss) - - (0.2) - 3.2 - 30.1 33.1 23.3 56.4

- - - - - - - - - -

Balance at 30/06/2013 614.2 275.2 504.7 (416.7) 1.7 1,146.0 30.1 2,155.3 862.7 3,018.0 (*) 1H 2012 restated results

32

EXPLANATORY NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS AT 30 JUNE 2013

1. Drafting criteria

In these Interim Condensed Half-Yearly Consolidated Financial Statements, which have been drawn up according to what is established by IAS 34 – Interim Financial Statements –, there have been applied the same accounting standards and valuation criteria that were used to draw up the Consolidated Financial Statements at 31 December 2012, to which reference should be made, with the exception of the adoption of the new standards, changes and interpretations that have come into force from 1 January 2013 and also some very complex valuation processes among which there are the impairment tests that are aimed at ascertaining any losses in value of capitalised assets that, in the absence of indicators, events and phenomena that would be such as to change the valuations of them that had been done in the past. These tests are usually carried out at the time of the drafting of the yearly financial statements, which is the time when there is available all the necessary information in order to be able carry out this process correctly and completely.

These Interim Condensed Half-Yearly Consolidated Financial Statements do not contain all the information and the explanatory notes that are required for the yearly financial statements and, therefore, in order to be fully comprehensible, they should be read together with the Consolidated Financial Statements at 31 December 2012.

The drafting of these Interim Financial Statements requires the company management to make a number of estimates and assumptions that have an impact on the stated values of the revenues, of the costs of the assets and of the liabilities contained in the financial statements, as well as an impact on the disclosure information relative to the contingent assets and liabilities at date of the interim financial.

The Income Taxes pertaining to the half-year were calculated based on the best estimate of the weighted average tax rate, which is forecasted for the whole financial year.

The interim consolidated results of the Mediaset Group are impacted by their seasonality, which is a characteristic feature of the trend of the advertising revenues, which, traditionally, are always much more heavily concentrated within the first part of the financial year.

The values of the items contained in the Consolidated Financial Statements, taking into account their very large size, are shown in EUR millions.

It is highlighted that the Income Statement data for the first half-year of 2012 have been restated to take in, retroactively and pursuant to the IFRS 3, the impacts of the final Purchase Price Allocation process regarding the values of the assets and the liabilities that have come into being, as a result of the business combination operation that took place between the companies EI Towers S.p.A. and the company Digital Multimedia Technologies S.p.A., which is the holding company of the DMT Group. The full details of this business combination operation are given in the Consolidated Financial Statements at come 31 December 2012.

The foregoing impacts have brought about, in the first half-year of 2012, higher amortisation and depreciation for EUR 0.8 million and a lower net financial result for the Group amounting to EUR 0.3 million, compared to the figure that was shown in the Interim Condensed Half-Yearly Consolidated Financial Statements at 30 June 2012.

Half Year Financial Report at 30 June 2013 – Explanatory Notes

33

These Interim Condensed Half-Yearly Consolidated Financial Statements have been the subject of a limited accounting audit by the auditing company Reconta Ernst & Young S.p.A..

2. Accounting standards, amendments and interpretations applied from 1 January 2013

The Group applied the following accounting standards, amendments and interpretations, for the first time starting from 1 January 2013.

IAS 1 Presentation of Items of Other Comprehensive Income – Amendments to IAS 1

The amendments to IAS 1 change the grouping of items presented in other comprehensive income (OCI). Items that could be reclassified (or ‘recycled’) to profit or loss at a future point in time (for example, net gain on hedge of net investment, exchange differences on translation of foreign operations, net movement on cash flow hedges and net loss or gain on available-for-sale financial assets) would be presented separately from items that will never be reclassified (for example, actuarial gains and losses on defined benefit plans and revaluation of land and buildings). The amendment affects presentation only and has no impact on the Group’s financial position or performance.

IAS 19 Employee benefits (changes)

The IASB has issued a number of changes to the IAS 19. These go from the radical changes, such as the elimination of the corridor method and of the concept of the expected returns from the activities of the plan, to those of simple clarifications and changes in terminology. The most relevant change relative to the elimination of the corridor method does not have any impacts at Group level because, at the time of the First Time Adoption, it had already opted for the option established by paragraph 93 A-D of the IAS 19, which establishes that the accounting posting of the actuarial profits and losses must be made directly to the Net Equity.

IAS 28 Investments in Associates and Joint Ventures (as revised in 2011)

As a consequence of the new IFRS 11 Joint Arrangements, and IFRS 12 Disclosure of Interests in Other Entities, IAS 28 Investments in Associates, has been renamed IAS 28 Investments in Associates and Joint Ventures, and describes the application of the equity method to investments in joint ventures in addition to associates. This standard has no impact on the Group, because the Goup already adopts the equity method on the evaluation of investments in joint ventures instead of the proportionate consolidation method.

IFRS 12 Disclosure of Interests in Other Entities

IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously included in IAS 31 and IAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required. This amendment has no impact on the Group’s financial position or economic results and but only reflects a different disclosure on the Annual Report.


34

IFRS 13 Fair Value Measurement

IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The application of these criteria required in the context of the calculation of the fair value of assets and liabilities the measurement of credit risk components of the counterpart; especially for the financial instruments held for hedge accounting purpose. The introduction of this new standard has no relevant impact on the valuation of the items included in this Interim Condensed Half-Yearly Consolidated Financial Statements.

3. The main company operations and changes in the consolidation area

It is highlighted that on 22 January 2013 Mediaset Investment Sarl exercised a call option it had on 20,155 shares of Nessma S.A., which were held by Karoui & Karoui Luxe SA, taking its equity investment in that company to 42.82% of its Share Capital. Afterwards, on 18 March 2013 the Shareholders Meeting of Nessma S.A. passed a resolution for an increase in the company’s Share Capital, which Mediaset Investment did not subscribe to and which, therefore, reduced its equity investment in that company to 34.12% of its Share Capital. This operation has not changed the valuation method that is used for this equity investment.

4. Comments on the main changes in the assets, liabilities, revenues and costs.

4.1 Tangible and intangible fixed assets, television and movie rights

NET BOOK VALUEProperty, plant and equipment

Television and movie rights

GoodwillOther intangible

assets

Balance at 31/12/2012 606.6 2,284.1 912.3 705.2

Changes in the consolidation area - - - -

Additions 12.9 302.7 0.4 52.0

Other changes (1.1) 23.4 - (30.0)

Disposals (1.2) (41.9) - (0.0)

Amortisation, depreciation and write-downs (47.1) (436.1) - (29.4)

Balance at 30/06/2013 570.1 2,132.3 912.7 697.7

Below there are summarised the main changes that have taken place in these assets, as well as the relative amortisation and depreciation, compared to their balances that were shown in the Consolidated Financial Statements at 31 December 2012:

There were increases in the item television and movie rights amounting to EUR 342.2 million of which EUR 302.7 million relative to the purchases made during the period and EUR 39.5 million relative to the capitalisation of advance payments on assets that were made to suppliers in the past. At 31 December 2012 these amounts were classified in the item called Fixed assets in progress and advances paid – Other changes. The item Other changes also includes rights decreases and cancellations. It is highlighted that the disposals


35

refer to the sale of the library of television rights, that was carried out on 1 April 2013, for a book value amounting to EUR 38.4 millions, to the company Boing S.p.A., joint venture with the Turner Group.

There were increases in the item real estate, plant and machinery amounting to EUR 12.9 million, mainly relative to investments in the purchase of devices that are to be rented out and for commonly utilisable apparatuses and plants that are at the stage of being completed.

There were increases in the item other intangible fixed assets for an overall total amount of EUR 52,0 million mainly relative to increases in the item called fixed assets in progress and advances paid for future purchases of rights. As already commented for the television and movie rights, the item Other changes includes EUR 39.5 millions linked to the capitalisation in the item television and movie rights of advances previously paid to suppliers.

4.2 Equity investments in affiliated and jointly controlled companies and other financial assets

Equity investments in jointly-controlled and affiliated companies

511.0 0.9 - (9.5) (9.3) 493.1

Equity investments 2.9 0.1 - - - 3.0

Receivables and other financial assets 14.4 22.3 (1.4) 0.1 6.3 41.7

Total 528.3 23.3 (1.4) (9.4) (2.9) 537.8

Balance at 30/06/2013

Balance at 31/12/2012

Additions Disposals Write-ups /(Write-offs)

Other changes

With reference to the item Equity investments in affiliated and jointly controlled companies the write-downs pertaining to the accounting period refer for EUR 9.6 million to the impact of the valuation by means of equity method of the stake of 22% owned in the company DTS Distribuidora de Television Digital S.A., which correspond to the pro-rata amount belonging to the Group of the result for the first half, as well as to amortisation of the intangible fixed assets identified in the context of the final Purchase Price Allocation process for this equity investment amounting to EUR 3.6 million.

The item Other Changes mainly refers to the decrease in 30% stake held in Titanus Elios S.p.A. following a decrease in share capital. Due to the impact of this reduction the Group posted a receivable, amounting to EUR 6.3 millions, in the item called Receivables and other financial assets.

The increase in the item Receivables and other financial assets, refers to the non current portion of the receivable from the affiliated company Boing S.p.A. relating to the the sale of a library of television rights and entertainment programs targeted for an audience of children.

4.3 Defferred tax assets and liabilities

The reduction of Deferred tax assets for EUR 24,2 million is mainly due to the use of the stake pertaining to the period of the provisions made during the previous year linked to the write-downs of sport tv rights.


36

4.4 Other reserves

30/06/2013 31/12/2012

Legal reserve 122.8 122.8Equity investment evaluation reserve (0.2) -Consolidation reserve (78.8) (78.8)Other comprehensive income/(losses) 124.4 124.4Other reserves 336.5 336.5

Total 504.7 504.9

The change in Equity method reserves includes the effects of the measurement of equity investments using the equity method, for the components allocated directly to the investee company's shareholders' equity.

4.5 Valuation reserves

30/06/2013 31/12/2012

Cash flow hedge reserve 2.7 (1.1)Stock option plans 13.9 15.9Actuarial Gains/(Losses) (14.9) (14.3)

Total 1.7 0.6

The table below illustrates the changes to these reserves during the period:

Valuation reservesBalance at

1/1Increase/

(Decrease)

Through Profit and

Loss Account

Opening balance

adjustments of the hedged

item

Fair Value adjustments

Deferred tax effect

Balance at 30//06

Financial assets for cash flow hedging purpose (1.1) (2.1) 1.5 (0.1) 5.9 (1.4) 2.7

of which:- FOREX rate risk 1.2 (2.1) (0.0) (0.1) 5.3 (0.8) 3.4

- interest rate risk (2.3) - 1.5 - 0.6 (0.6) (0.7)

Stock option plans 15.9 (2.1) - - - - 13.9Actuarial Gains/(Losses) on defined benefit plans (14.3) (0.8) - - - 0.2 (14.9)

Total 0.6 (4.9) 1.5 (0.1) 5.9 (1.2) 1.7

The Valuation reserve for cash flow hedge instruments was set up in the context of the valuation of the qualified financial derivatives used to hedge the exchange rate risk regarding the acquisitions of television and movie rights in foreign currencies and to hedge the risk of the interest rate change for medium and long term financial liabilities.

The Reserve for Stock Option Plans takes in the other side of the accounting entry of the amounts of the cost accrued at 30 June 2013, calculated according to the IFRS 2, for the three year Stock Option Plans assigned by Mediaset in the financial years 2010 and for the amount, pertaining to the Group, for the plans assigned by the subsidiary company Mediaset Espana


37

Comunicacion S.A. in the financial years 2011 and 2012.The change occurred during the period refers for EUR 0.2 million to the amount of the cost accrued during the first half pertaining to the Group as well as for EUR 2.3 million to the restatement in the item Retained earnings for the part of the reserve relating to the stock option plan expired during the period.

The Valuation reserve for actuarial gains and losses takes in the actuarial components relative to the valuation of the defined benefit plans that are posted directly to net equity.

The change in the Valuation reserve for financial instruments to hedge the cash flows and in the Valuation reserve for actuarial gains and losses, gross of the fiscal impacts, is shown in the Comprehensive Income Statement table.

4.6 Risks Funds and Contingent Liabilities

The reduction relative to the risks funds, amounting to EUR 51.4 million, mainly refers to the usage of the funds that were provided at 31 December 2012 last, as a result of the fact that these liabilities had begun to show themselves in the first half.

With reference to the contingent liabilities, the current updated situation is given below relative to those legal proceedings that are ongoing and regarding which the appropriate disclosure information was given in the Financial Statements at 31 December 2012.

As far as the criminal proceedings 22964/2001, i.e. “The Mediaset Rights Trial”, are concerned, as reported in the financial statements at 31 December 2012, on 23 October 2012 the Court of Milan issued its first level ruling, finding Silvio Berlusconi, Frank Agrama, Gabriella Galetto and Daniele Lorenzano guilty of tax fraud but, on the contrary, fully absolving, “because he had not committed the offence”, the Chairman Fedele Confalonieri. The Court of Appeal of Milan confirmed this first level ruling, on 8 May 2013.

As reported on the 2012 Annual Report, on 21 December 2012 the Revenue Agency issued to Mediaset S.p.A. an assessment notice raising net profit for the fiscal year 2003 by Euro 8.8 million for purposes of IRPEG (i.e. the corporate income tax) and IRAP (i.e. the regional tax on productive activities), on grounds of non-recognition of amortisation for the television rights involved in the above criminal case. It should be noted that an appeal against the assessment notice (issued for the 2001, 2002 and 2003 tax periods which recognised a greater IRPEG and IRAP tax base of respectively EUR 15.6, 19.9 and 8.8 million) was lodged with the competent Tax Commission. The hearing before the Provincial Tax Commission of Milan for the discussion of the “rights” dispute, relative to the 2001 tax year has been fixed for the day of 9 October 2013.

It should be stressed that none of the tax disputes before the Taxation Commissions has been decided, that opinions are divided as to the likely outcome of those disputes, and that the proceedings in question form part of a fairly systematic though as yet unresolved set of criminal cases in which the courts’ decisions – such as, most recently, that of the Court of Cassation handed down on 6 March 2013 – though they bear on the facts of different tax years, nevertheless agree in relating to facts which are similar to those which the company has challenged in the tax hearings: this accordingly only strengthens the company’s position, that it is convinced that it has been guilty of no wrongdoing. On that basis the company has not made any specific provision for it in the accounts.

With regard to the proceeding no. 40382/05 (the “Mediatrade” case), involving Frank Agrama together with directors and managers of the Mediaset Group, is currently at the trial stage of


38

cross-examination and argument. The Mediaset Group officers are charged with aggravated tax fraud between 2005 and 30 September 2009. The total amount of tax allegedly evaded is Euro 8.2 million. The company is confident that the trial stage will show that it itself, its directors and its senior managers had no involvement in the alleged offences, and accordingly believes there is no need to make any specific provision in the accounts.

With reference to the Tax Assessment Notice that was formally served on RTI on 21 December 2012 relative to the “Mediatrade rights” dispute for the,2003 tax year, with which the Tax Receipts Agency adjusted the taxable base by Euro 7.8 million, it is highlighted that the situation was defined in May 2013 by means of the presentation of a declaration of adherence to the assessment made by that institution, but solely for the purpose of carrying out a deflationary action regarding the taxation dispute. This decision was also taken while being fully aware of the fact that the calculation of the taxable base made by the Agency is totally out of alignment with value of the technical valuation carried out by KPMG S.p.A., which is the basis of the public prosecution in the criminal proceedings that are referred to above and that the matters that are the subject of the adherence were fully defined at the end of the criminal proceedings with an acquittal judgement that was made “because the fact did not take place”. The determination of this situation brought about a charge of Euro 2.7 million.

The estimate of the value of the potential risk involved if there arises a dispute, initiated by the Tax Receipts Agency for the tax years 2004 to 2011, amounts to about Euro 8 million, plus the relative interest charges and fines.

With reference to assessment noticed by the Revenue Agency on 21 December 2012 to the Group subsidiary Publitalia’80 for VAT in 2005, 2006 and 2007, for IRES in 2006 and 2007, and for IRAP in 2006 and 2007 amounting in all to EUR 7.2 million plus interest and fines for which the company proposed a declaration of adherence to the assessment on a part of the objections raised by the Italian Revenues Agency. It should be noted that since no agreement with the tax authority has been reached, the relevant appeals have been promptly presented. Beside, facing those assessments, a provision of EUR 6 million has been made.

With reference to Mediaset España, it is highlighted that on 6 February 2013 the “Consejo de la Comision Nacional de la Competencia”, i.e. the Spanish Antitrust Authority, issued sanctions, for a total overall amount of EUR 15.6 million, against Mediaset Espana because it was claimed that it had not fulfilled some obligations/commitments to which that body had subordinated the business concentration operation regarding Telecinco/Cuatro, which took place in December 2010. These obligations also established some restrictions for Mediaset España, which were aimed at neutralising the business concentration that would have taken place due to the effect of the operation.

The limitations/restrictions were afterwards developed into an actuation plan, imposed by the antitrust commission, which also established some specific periodic informational disclosure obligations, in order to enable it to watch over the observance of these obligations. This plan created an interpretation of the situation that was so restrictive upon the agreements involved that its result was to significantly change the commitments taken on by Mediaset España, both regarding advertising matters and those involving the acquisition of television rights. In fact, Mediaset España contested and appealed against the plan in the appropriate administrative locations and, as of today, a ruling on this matter is still awaited.

The company maintains that it has fulfilled the commitments that were agreed with the Comision Nacional de la Competencia. In fact, regarding the advertising situation it is


39

highlighted that there has been a reduction in the advertising market share, as a result of the average price charged, while regarding the acquisition of rights situation Mediaset España has gone ahead and renounced all the option rights included in the purchase contracts.

For these reasons Mediaset España has decided to present a plea to the “Audiencia Nacional” (Spanish National Court), requesting the suspension of the payment of the sanction in conformity with what is established by articles 46, 129 and the following ones of the Law 29/1998. Therefore, believing the risk to be unfounded the company maintains that there is no need to make any posting, whatsoever, of a provision in these Half-Yearly Condensed Consolidated Financial Statements.

During the year 2013 a tax audit was carried out on Mediaset Espana by the Spanish Financial Administration, i.e. “Dependencia de Control Tributario y Adeanuero de la Delegacion Central de Grandes Contribuentes”, and there was contested the company’s application of dome fiscal measures that were used in the calculation of the taxes called “Tasa juegos, suerte, envite oazar: Rifas y tombola y Tasa de juego” for the tax years that run from 2008 to 2011 inclusive, claiming an additional assessment for a total overall sum amounting to EUR 9.00 million. The company maintains that there have merely been utilized for these calculations the same criteria that were established for them by the taxation administration itself on previous occasions and with reference to exactly identical operations to those contained in the contested calculations. Therefore, the company has not posted any provision, whatsoever, regarding this matter in its Condensed Half Yearly Consolidated Financial Statements.

4.7 Net Financial Position

Below there is given the breakdown of the Consolidated Net Financial Position as required by the Consob communication number 6064293 of 28 July 2006, which shows the current and non-current net financial debt of the Group.

For the analysis of the changes in the Net Financial Position that took place in the relative accounting period reference should be made to the Interim Report on Operations, within the comment’s section regarding the Group’s Equity and Financial Structure.

30/06/2013 31/12/2012

Cash in hand and cash equivalents 0.1 0.1Bank and postal deposits 231.8 221.7Securities and other current financial assets 4.8 4.8Total liquidity 236.7 226.6

Current financial receivables 17.3 13.4

Due to banks (577.9) (664.7)Current portion of non current debt (27.9) (39.1)Other current payables and financial liabilities (41.8) (36.6)Current financial debt (647.6) (740.4)

Current Net Financial Position (393.5) (500.5)

Due to banks (627.1) (912.9)Corporate bond (514.4) (296.2)Other non current payables and financial liabilities (1.3) (3.2)Non current financial debt (1,142.8) (1,212.3)

Net Financial Position (1,536.4) (1,712.8)


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The item Securities and current financial assets refers for EUR 4.8 million to bonds and mutual funds that are owned by the subsidiary company Mediaset Investment S.a.r.l. (EUR 4.8 million at 31 December 2012).

The item Current Financial Receivables includes the state contributions that have been obtained for movie productions carried out by Medusa Film S.p.A., the payments for which have been resolved upon by the competent entities, but that have not yet been paid out, for the total amount of EUR 16.2 million (EUR 11.3 million at 31 December 2012) and other financial receivables relative to the Mediaset España Group for EUR 1.1 million (EUR 1.7 million at 31 December 2012).

The item Payables to Banks (current) refers to short term revolving “committed” credit lines and term loans for EUR 20.0 million and to short term credit lines for EUR 557.9 million.

The decrease for the half-year period amounting to EUR 86.8 million mainly refers to the following items:

The extinguishing of the “revolving” committed credit lines and the reimbursement of short term credit lines, relative to the EI Towers Group, for a total overall nominal value amounting for a total overall nominal value amounting to EUR 65.2 million;

The reimbursement of revolving committed loans and financing for a total overall nominal value amounting to EUR 30.0 million;

The extinguishing of term loans and revolving committed loans and financing for a total overall nominal value amounting to EUR 205.0 million

The greater level of usage of the short term credit lines for a total overall nominal value amounting to EUR 209.0 million.

The item Current part of the non-current debt mainly consists of the current part of the bond issue for the amount of EUR 16.3 million and the current amount of the medium and long term bank loans and financing, i.e. term loans for EUR 10.8 million.

The item Current Other Financial Payables and Liabilities, mainly consists of EUR 21.5 million relative to current account relationships, which are managed on behalf of affiliated and jointly controlled companies by the Group Parent Company Mediaset S.p.A. (EUR 7.8 million at 31 December 2012), EUR 15.5 million relative to the payables to factoring companies (EUR 19.9 million at 31 December 2012), financing received to cover the activities of movies development, distribution and production for the amount of EUR 1.8 million (EUR 2.2 million at 31 December 2012) and the fair value of financial instruments, not dedicated to hedging, for the part that is in excess, compared to the change in the amount of the foreign currency payables that have been hedged for EUR 1.8 million.

The item Non-current payables to banks refers to the “committed” credit lines and to the “term loans” for the amounts of them that will fall due beyond 12 months. The “term loans” are posted to the accounting books using the amortised cost method.

The movements during the accounting period resulted in an ending net reduction amounting to EUR 285.8, which was the result of the following items:

The reclassification into the item Current part of the non-current debt of the parts of the amounts of the term loans that will fall due within 12 months for a total overall nominal value amounting to EUR 10.9 million


41

The extinguishing of the financing regarding the “committed” credit lines and the term loans relative to the EI Towers Group for a total overall nominal value amounting to EUR 66.7 million;

The reimbursement of the revolving “committed” credit lines for a total overall nominal value amounting to EUR 250.0 million;

The opening of some new revolving committed credit lines for a total overall nominal value amounting to EUR 40.0 million.

As already referred to in the Financial Statements at 31 December 2012, the loans, financing and the credit lines in existence are subject to financial covenants, on an established consolidated basis (half-yearly and yearly), which if they are not respected would require that the part that has been used be repaid immediately. Up till today all the requisites contained in these covenants have been fully observed.

The item Bonds Issued refers to the following:

To the 7 year bond for a total overall nominal value amounting to EUR 300.0 million issued by Mediaset S.p.A. on 1 February 2010,

To the bond for a total overall nominal value amounting to EUR 230.0 million, with a duration of 5 years, issued by the subsidiary company EI Towers S.p.A. on 26 April 2013.

In both of these cases the bond issues have been posted to the accounting books applying the amortised cost method, based on the internal rates of return of 5.23% and 4.35%, respectively.

The item Other non-current financial payables and liabilities mainly refers to loans and financing received regarding the activities of movie development, distribution and production for the amount of EUR 2.3 million (EUR 1.2 million at 31 December 2012).

4.8 Financial income/losses

1H 2013 IH 2012

Interests on financial assets 0.9 3.0

Interests on financial liabilities (23.6) (21.6)

Other financial income/(losses) (8.3) (8.1)

Foreign exchange gains/(losses) 0.4 (2.8)Total financial income/(losses) (30.7) (29.5)

4.9 Taxes for the accounting period

1H 2013 1H 2012

Current tax expenses (IRES and IRAP) (4.5) 25.6

Tax expenses (foreign companies) 7.8 27.7

Deferred tax expense 37.5 (1.9)

Total 40.8 51.4

The item Current taxes includes, beside IRAP charges pertaining to the first half, an income generated as a result of a negate tax base IRES which has its counterpart accounted on the


42

deferred tax assets item. The amount also includes EUR 2.1 million relative to the defining and closing, by the subsidiary company RTI S.p.A., of a taxation dispute, as has been commented on in the section called Risks Funds and Contingent Liabilities.

As commented on in the section called Prepaid taxes assets, the change in the values of the prepaid and deferred taxes mainly refers to the usage that belongs to the accounting period, of the taxes that were provided for at the end of the last financial year, as a result of the write-downs and the provisions that were posted as adjustments to the values of the rights pertaining to the main sporting events.

The item called Foreign company taxes mainly consists of the current taxes that have been posted by the companies belonging to the Mediaset Group España. It is highlighted that this item, in the first half-year of 2012, mainly consisted of the charges relative to taxes pertaining to previous financial years, as a result of the defining and closing of a taxation dispute relative to the Luxembourg based subsidiary company Mediaset Investment S.a.r.l.

4.8 Earnings per share

The calculation of basic and diluted earnings per share is based on the following data:

1H 2013 1H 2012

Net result for the period (millions of euro) 30.1 42.8

Weighted average number of ordinary shares (without own shares) 1,136,402,064 1,136,402,064Basic EPS 0.03 0.04

Weighted average number of ordinary shares for the diluted EPS computation 1,136,402,064 1,136,402,064

Diluted EPS 0.03 0.04

The figure for earnings per share is determined by reconciling the Group’s net profit with the weighted average number of shares in circulation during the period, net of own shares. The figure for diluted shares is determined by calculating the number of shares in circulation and the potential diluting effect from the allocation of own shares to the beneficiaries of accrued stock option rights.


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5. Segment Report

As required under IFRS 8, the following information relates to the operating segments identified on the basis of the Group’s present organisational structure and internal reporting system.

The Group’s main operating segments (already included in the analysis of results contained in the Interim Report on Operations, are the same as the geographical areas (Italy and Spain) identified according to the location of operations. These operations are then segmented further, to monitor the performance of the business areas operating in each country, which are identified according to their economic profile (type of product, process and reference market). In relation to Spain (Mediaset España Group) no significant areas have been identified other than the core business of television, which is the same entity.

Following the nature of this segmentation, for the geographical areas there are supplied the information and reconciliations required by IFRS 8 relative to profits or losses, assets and liabilities that can be extrapolated from the two sub-consolidations, which are specifically prepared at that level, while for the operational segments that have been identified in the geographical area of Italy the information is supplied with reference to the financial results and the “operational” business activities that are directly imputable to it.

Geographical Areas

In the following tables there are shown the key Income Statement/Balance Sheet data regarding the two geographical business activity areas of Italy and Spain at 30 June 2013 and 2012, respectively.

These tables have been obtained by processing specific sub-consolidations, within which the posted book value of the equity investments, owned by companies belonging to a segment those companies that are held in another segment are kept at their respective acquisition costs and then they are eliminated at the time of consolidation. Similarly, in the Income Statement of the segment, charges and incomes, relative to any dividends received from such equity investments, are shown in the item Result from other equity investments

Specifically, the data relative to the inter-segment assets of the Italian geographical segment are mainly relative to the posted book value of the equity investments owned in Mediaset España (41.6%) and Mediacinco, which is held for 25% and already consolidated on a full line-by-line basis in the Spain geographical segment, because 75% of it is owned there, and the loan given by Mediaset Investment S.a.r.l. to Mediacinco, amounting at 30 June 2013 to EUR 19.1 million.

The costs of a non-monetary nature refer to the provisions posted for risks and charges funds and to the costs for the stock option plans.


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1H 2013 ITALY SPAINEliminations/ Adjustments

MEDIASETGROUP

MAIN INCOME STATEMENT FIGURES

Revenues from external customers 1,310.0 427.0 - 1,737.0

Inter-segment revenues 0.4 - (0.4) -

Consolidated net revenues 1,310.4 427.0 (0.4) 1,737.0

% 75% 25% 0.0 100%

EBIT 86.4 47.2 - 133.6

% 65% 35% 0% 100%

Financial income/(losses) (29.7) (1.0) - (30.7)

Income/(expenses) from equity investments valued (1.7) (7.8) - (9.5)

Income/(expenses) from other equity investments 0.9 (0.0) - 0.8

EBT 55.8 38.4 - 94.2

Income taxes (32.3) (8.5) - (40.8)

NET PROFIT FROMCONTINUING OPERATIONS

23.5 29.9 - 53.4

Net Gains/(Losses) from discontinued operations - - - -

NET PROFIT FOR THE PERIOD 23.5 29.8 - 53.4

Attributable to:- Equity shareholders of the parent company 17.6 30.1 (17.7) 30.1- Minority Interests 5.9 (0.3) 17.7 23.3

OTHER INFORMATION

Assets 5,744.6 1,794.4 (611.1) 6,928.0

Liabilities 3,588.1 343.2 (21.3) 3,910.0

Investments in tangible and intangible non current assets 254.0 122.4 - 376.4

Amortization 439.2 86.6 (0.0) 525.8

Other non monetary expenses (2.3) 2.6 - 0.3

(*) Includes the change in “Advances for purchase of right”


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1H 2012 ITALY SPAINEliminations/ Adjustments

MEDIASETGROUP

MAIN INCOME STATEMENT FIGURES


Inter-segment revenues 0.4 - (0.4) -

Consolidated net revenues 1,525.8 474.0 (0.4) 1,999.3

% 76% 24% 0.0 100%

EBIT 113.6 32.0 - 145.6

% 78% 22% 0% 100%

Financial income/(losses) (29.8) 0.3 - (29.5)

Income/(expenses) from equity investments valued (1.1) 4.3 - 3.2

Income/(expenses) from other equity investments 23.8 0.7 (23.3) 1.1

EBT 106.4 37.3 (23.3) 120.5

Income taxes (51.4) - - (51.4)

NET PROFIT FROM CONTINUING OPERATIONS

55.0 37.3 (23.3) 69.1

Net Gains/(Losses) from discontinued operations - - - -

NET PROFIT FOR THE PERIOD 55.0 37.3 (23.3) 69.1

Attributable to:- Equity shareholders of the parent company 50.4 37.6 (45.3) 42.8- Minority Interests 4.6 (0.3) 22.1 26.4

OTHER INFORMATION

Assets 6,415.8 1,839.5 (616.9) 7,638.4

Liabilities 3,954.2 431.3 (27.4) 4,358.2

Investments in tangible and intangible non current assets 334.1 135.5 - 469.6

Amortization 516.8 104.4 - 621.2

Other non monetary expenses 7.3 (0.2) - 7.1

Include s the change in “Advances for purchase of right”


46

Italy: Business Segments

Business segments have been already illustrated on the Interim Report on Operations, which is the reference for the commentary on the economical trends in the period.

With reference to assets and liabilities detail of EI Towers Group, it is worth noting that the amount relating to the goodwill is not the same of the EI Towers Group consolidated statement of financial position, representing instead the value generated at consolidated level of the same segment.

Income Statement Summary INTEGRATED EI ELIMINATIONS GEOGRAPHICAL

1H 2013 TELEVISION TOWERS / SEGMENTOPERATIONS ADJUSTMENTS ITALY


Inter-segment revenues - 89.9 (89.9) -

Consolidated net revenues 1,283.9 116.4 (89.9) 1,310.4% 98% 9% -7% 100%

Operating costs from thrid parties (722.1) (62.7) - (784.8)

Inter-segment operating costs (88.3) (1.6) 89.9 -

Total Operating Costs (810.4) (64.3) 89.9 (784.8)


EBIT 56.6 29.8 (0.0) 86.4

Income Statement Summary INTEGRATED EI ELIMINATIONS GEOGRAPHICAL

1H 2012 TELEVISION TOWERS / SEGMENTOPERATIONS ADJUSTMENTS ITALY


Inter-segment revenues - 89.2 (89.2) -

Consolidated net revenues 1,498.0 117.0 (89.2) 1,525.8% 98% 8% -6% 100%

Operating costs from thrid parties (826.6) (68.8) - (895.4)

Inter-segment operating costs (87.5) (1.7) 89.2 -

Total Operating Costs (914.1) (70.5) 89.2 (895.4)


EBIT 89.7 23.9 - 113.6


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Operating Assets and Investments INTEGRATED EI ELIMINATIONS GEOGRAPHICAL

30th June 2013 TELEVISION TOWERS / SEGMENT

OPERATIONS ADJUSTMENTS ITALYTelevision rights 1,871.5 - - 1,871.5Other tangible and intangible non current assets 640.9 334.4 - 975.3Goodwill 143.2 119.0 - 262.2Trade receivables 701.5 34.7 - 736.2Inventories 27.3 3.0 - 30.3Operating assets 3,384.4 491.1 - 3,875.5

- - - -Investments in television rights (*) 230.6 - - 230.6Other investments 12.2 2.3 - 14.5

Investments in tangible and intangible assets 242.8 2.3 - 245.1 (*) Not including the change in “Advances for the purchase of right

Operating Assets and Investments INTEGRATED EI ELIMINATIONS GEOGRAPHICAL

30th June 2012 TELEVISION TOWERS / SEGMENT

OPERATIONS ADJUSTMENTS ITALYTelevision rights 2,538.6 - - 2,538.6Other tangible and intangible non current assets 734.8 295.1 - 1,030.0Goodwill 142.8 149.0 - 291.8Trade receivables 854.4 29.3 - 883.7Inventories 54.4 4.8 - 59.2Operating assets 4,325.0 478.3 - 4,803.3

- - - -Investments in television rights (*) 290.1 - - 290.1Other investments 36.1 23.7 - 59.8

Investments in tangible and intangible assets 326.2 23.7 - 349.9

(*) Not including the change in “Advances for the purchase of right

The main operations allocated refer to the television and movie rights included in the Integrated Television Activities area, the library (films, dramas, mini-series, TV films and cartoons), long-running self-produced drama series, entertainment, news and sport rights serving both the free to air channels and Mediaset Premium. In particulary Sports rights include the broadcasting rights for Italy’s leading football clubs up until the 2014/2015 season.

Other tangible and intangible asset refer mainly to:

for Integrated Television Activities, these relate mainly to rights to use television frequencies related to DTT Multiplex and connected transmission equipments, equipments that support television production centres, IT systems, and the upgrading of management offices and other property and investments relating to development of the subscription-based pay-TV platform Mediaset Premium.

for EI Towers, are included lands, buildings and the equipments related to the broadcasting network.


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6. Transactions with related parties

In the following summary table there are given, for the main Income Statement/Balance Sheet groupings, the details relative to each company that is the counterpart in these transactions, which are identified pursuant to IAS 24 and that are also are grouped according to the main types of the transaction relationships.

RevenuesOperating

costs

Financial income/

(charges)

Trade receivables

Trade payablesOther

receivables/(payables)

CONTROLLING ENTITY

Fininvest S.p.A. 0.1 2.5 - 1.3 0.0 19.5

ENTITA' CONSOCIATE

A.C. Milan S.p.A.* 0.1 0.2 - 0.1 6.1 (0.0)

Alba Servizi Aerotrasporti S.p.A. 0.0 0.3 - 0.1 0.3 -

Arnoldo Mondadori Editore S.p.A.* 8.2 1.3 0.0 8.5 1.2 0.1

Isim S.p.A. - - - - - -

Mediolanum S.p.A.* 2.8 0.0 (0.6) 1.2 - (24.5)

Trefinance S.A.* 0.0 0.0 - 0.0 - -

Other associated 0.0 0.4 (3.5) 0.0 0.0 (397.2)

Total associated 11.1 2.2 (4.1) 9.9 7.6 (421.6)

JOINT COTROLLED AND AFFILIATED ENTITIES

60 DB Entertainment S.L. - 0.7 - - 0.8 -

Agrupaciòn de Interés Economico Furia de Titanes II A.I.E. - - - - - -

Auditel S.p.A. - 2.6 - - 0.0 -

Beigua S.r.l. - - - - - -

Big Bang Media S.L. - 2.9 - - 1.2 -

Boing S.p.A. 5.6 10.9 0.0 5.9 6.8 33.3

Capitolosette S.r.l.** 1.3 0.4 0.0 2.2 0.3 0.8

DTS Distribuidora de Television Digital SA 1.3 10.6 - 0.3 6.4 -

Editora Digital de Medios S.L. 0.0 0.1 - 0.0 0.1 -

Fascino Produzione Gestione Teatro S.r.l. 0.8 31.4 (0.1) 0.3 6.9 (21.3)

La Fabbrica De la Tele SL - 14.6 - - 10.4 -

Mediamond S.p.A. 14.2 1.7 - 14.8 2.9 0.0

Nessma Lux S.A.** - - 0.0 0.0 0.1 0.2

Pegaso Television INC** - - 0.2 2.0 - 3.8

Produciones Mandarina SL - 9.9 - - 6.4 -

Tecno Impianti S.a.s. 0.0 0.0 - 0.1 0.0 -

Titanus Elios S.p.A. - 2.6 - 0.0 - 6.4

Tivù S.r.l. 0.7 0.6 - 0.8 0.5 -

Trentuno S.r.l. 0.1 0.0 - 0.4 0.5 -

Total joint controlled and affiliated entities 24.0 89.1 0.1 26.9 43.4 23.2

KEY STRATEGIC MANAGERS*** - 0.5 - - 0.2 -

PENSION FUNDS (Mediafond) - - - - - (1.1)

OTHER RELATED PARTIES**** 0.1 0.1 - 0.1 0.0 -

TOTAL RELATED PARTIES 35.3 94.4 (4.0) 38.2 51.3 (380.0) * This item includes the company and its subsidiaries, affiliates and jointly controlled companies. ** This item includes the company and its subsidiaries. *** This item includes the Directors of Mediaset S.p.A. and of Fininvest S.p.A., their close family members and the companies within which these persons exercise the control, a joint control or a notable or who hold, either directly or indirectly, a significant portion which, in any case, is not less than 20% of the voting rights. **** This item includes the relations with some consortiums that mainly carry out activities that are connected with the operational management of the broadcasting of the television signal.


49

The revenues and the trade receivables from associated entities are mainly relative to the sales of television advertising spaces. The costs and the relative trade payables mainly refer to the purchase of television rights and productions and to the fees that have been recognised towards affiliated companies regarding the sales of advertising spaces that are managed on an exclusive concession basis by the companies of the Group.

The item other receivables/payables mainly refers to debt relationships regarding loans and credit lines given to associated companies, to current account relationships between companies in the Group and to loans given to affiliated companies. It is highlighted that the other receivables that are owed by Boing S.p.A. are mainly relative to the remaining amount of the price that is due to be paid to R.T.I. S.p.A. in relation to the operation regarding the sale of a part of the latter company that was carried out on 1 April 2013. There is also included within this item, as was already reported on in the Financial Statements at 31 December 2012, the receivable amounting to EUR 19.2 million, owed to it by its parent company Fininvest S.p.A. and which is relative to a receivable, which is the subject of an indemnity that was recognised by Fininvest S.p.A. with the legal settlement agreement that was signed on 5 March 2010 with Mediaset S.p.A., regarding the taxation dispute that was defined and concluded on 27 February 2013 with the judgement number 4901 that was issued by the Supreme Court.

The debt relationships for financing, loans and credit lines regarding the other associated companies amounting to EUR 425.8 million are mainly relative to contracts with Mediobanca, an affiliated company of the Fininvest Group and with Banca Mediolanum. Of this total amount EUR 400.0 million refers to the usage of the revolving loan financing, with a duration of 8 years, which was agreed with Mediobanca in May 2011. There were also present in this item some uncommitted credit lines with Banca Mediolanum, which have been used for an overall total value amounting to EUR 25.0 million.

The main impacts on the consolidated cash flows that have been generated by the relationships with related parties during the half-year are mainly relative to disbursements for the acquisition of rights from the company Milan A.C. for the amount of EUR 10.3 million.


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7. Personal guarantees given and commitments

The total overall value of the guarantees received, which are mainly bank sureties and guarantees, relative to receivables from third parties amounted to EUR 25.4 million (EUR 39.3 million at 31 December 2012). Of this amount EUR 19.7 million refers to the Mediaset España Group.

There were also issued sureties and guarantees in favour of third party companies for EUR 55.0 million (EUR 42.0 million at 31 December 2012). Of this amount EUR 48.7 million refers to the Mediaset España Group.

The main existing commitments of the companies of the Mediaset Group can be summarised as follows:

Multi-year commitments that are mainly relative to rental contracts for satellite channels, with variable durations, which will bring about future disbursements for EUR 114.2 million (EUR 141.6 million at 31 December 2012) and to contracts for contents and broadcasting capacity services on digital frequencies for EUR 254.8 million, EUR 48.7 million of which towards affiliated companies (EUR 230.0 million at 31 December 2012), as well as transmission capacity services on digital frequencies for EUR 283.6 million (EUR 305.1 million at 31 December 2012),

Commitments for artistic collaboration, television productions and contracts with press agencies for about EUR 120.0 million (EUR 126.5 million at 31 December 2012).

Commitments for the acquisition of rights amounting to an overall total of EUR 906.5 million (EUR 1,113.3 million at 31 December 2012). These future commitments mainly refer to the volume deal contracts that the Mediaset Group currently has in existence, both in Italy and Spain, with some of the Major American studios.

Commitments for the acquisition of new equipment, apparatuses, the realisation of works and supplies for the sites of the Group’s companies and the supply of EDP services for EUR 70.7 million (EUR 72.4 million at 31 December 2012).


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8. Transactions arising from atypical and/or unusual operations

Pursuant to the Consob Communication of 28 July 2006 number DEM 6064296, it is underlined that during the first half of 2012 the Group has not put in place any atypical and/or unusual operations, as these are defined by the aforesaid Communication.

For the Board of Directors the Chairman


53

LIST OF THE EQUITY INVESTMENTS IN THE CONSOLIDATED ACCOUNTING STATEMENTS AT 30 JUNE 2013

(values in EUR million)

Companies consolidated on a line-by-line basis Registered Office Currency Share capital % held by the

Group (*)

Mediaset S.p.A. Milan EUR 614.2 -

Publitalia '80 S.p.A. Milan EUR 52.0 100.00%

Digitalia '08 S.r.l. Milan EUR 10.3 100.00%

Promoservice Italia S.r.l. Milan EUR 6.7 100.00%

Publieurope Ltd. London GBP 5.0 100.00%

R.T.I. S.p.A. Rome EUR 500.0 100.00%

Videotime S.p.A. Milan EUR 52.0 99.05%

Elettronica Industriale S.p.A. Lissone (MB) EUR 363.2 100.00%

EI Towers S.p.A. Lissone (MB) EUR 2.8 65.00%

Towertel S.p.A. Lissone (MB) EUR 22.0 65.00%

Tecnoimpianti S.a.s. Trento EUR 0.0 32.50%

Mediashopping S.p.A. Milan EUR 7.0 100.00%

Medusa Film S.p.A. Rome EUR 120.0 100.00%

Taodue S.r.l. Rome EUR 0.1 100.00%

Mediaset Investment S.a.r.l. Luxembourg EUR 79.6 100.00%

Mediaset España Comunicacion S.A. Madrid EUR 203.4 41.55%

Publiespaña S.A.U Madrid EUR 0.6 41.55%

Publimedia Gestion S.A.U. Madrid EUR 0.1 41.55%

Sogecabel Editorial SLU Madrid EUR 0.0 41.55%

Sogecabel Media SLU Madrid EUR 0.0 41.55%

Telecinco Cinema S.A.U. Madrid EUR 0.2 41.55%

Grupo Editorial Tele 5 S.A.U. Madrid EUR 0.1 41.55%

Conecta 5 Telecinco S.A.U. Madrid EUR 0.1 41.55%

Mediacinco Cartera S.L. Madrid EUR 240.0 56.16%

Premiere Megaplex S.A. Madrid EUR 0.1 20.78%

Joint control and affiliated companies Registered Office Currency Share capital% held by the

Group

Agrupación de Interés Economico Furia de Titanes II A.I.E. Santa Cruz de Tenerife EUR 0.7 14.13%

Auditel S.r.l. Milan EUR 0.3 26.67%

Beigua S.r.l. Rome EUR 0.1 15.93%BigBang Media S.L. (former Telecinco Factoria de Production, SLU) Madrid EUR 0.2 12.47%

Boing S.p.A. Milan EUR 10.0 51.00%

Capitolosette S.r.l. Milan EUR 2.9 48.96%

DTS Distribuidora de Television Digital SA Madrid EUR 126.3 9.14%

Editora Digital de Medios S.L Madrid EUR 1.0 20.78%

60 DB Entertainment S.L. Barcelona EUR 0.0 12.47%

Fascino Produzione Gestione Teatro S.r.l. Rome EUR 0.0 50.00%La Fabrica De La Tele S.L. (former Hormigas Blancas Producciones S.L.) Madrid EUR 0.0 12.47%

Mediamond S.p.A. Milan EUR 1.5 50.00%

Nessma S.A. Luxembourg EUR 8.1 34.12%

Nessma Broadcast S.a.r.l. Tunis EUR 1.0 25.00%

Pegaso Television INC Miami (Florida) EUR 83.3 18.16%

Producciones Mandarina S.L. Madrid EUR 0.0 12.47%

Titanus Elios S.p.A. Rome EUR 5.0 29.72%

Tivù S.r.l. Rome EUR 1.0 48.16%

Equity investments held as "Available for sale" Registered Office Currency Share capital% held by the

Group

Alto Adige S.r.l. Trento EUR 0.2 5.41%

Aprok Imagen S.L. Madrid EUR 0.3 1.27%

Ares Film S.r.l. Rome EUR 0.0 5.00%

Cinecittà Digital Factory S.r.l. Rome EUR 6.0 15.00%

Circuito Cinema S.r.l. Rome EUR 2.1 11.53%

Class CNBC S.p.A. Milan EUR 0.6 10.90%

Edam Acquisition Holding I Cooperatief U.A. Amsterdam EUR 2,075.6 18.72%

Gruppo Editoriale Trentino Trento EUR 0.2 5.41%

Grattacielo S.r.l. Milan EUR 0.1 10.00%International Media Services Ltd. (winding-up) Valletta (Malta) EUR 0.1 99.95%

Kirch Media GmbH & Co. Kommanditgesellschaft auf Aktien Unterföhring (Germany) EUR 55.3 2.28%

Radio e Reti S.r.l. Milan EUR 1.0 10.00%

Romaintv S.p.A. Rome EUR 0.8 9.68%

Sportsnet Media Limited George Town (Grand Cayman) EUR 0.1 12.00%

Trentuno S.r.l. Trento EUR 0.0 5.41%X Content S.r.l. (winding-up) Rome EUR 0.1 100.00%

(*) Group’s stake calculated not considering parent companies’ own shares

Mediaset Group Statement concerning the

Condensed Half-Year Financial Statements in Compliance with Art. 154-bis of

Italian Law Decree 58/98

Mediaset Group Auditors’ review report on the

half-year condensed consolidated financial statements

Documents

Mediaset Groupplit/Mediaset Group - 201… · Attilio Ventura . Executive Committee. Fedele Confalonieri . Pier Silvio Berlusconi . Giuliano Adreani . Gina Nieri . Risk and Control