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Gruppo Editoriale L’Espresso: Company Presentation

September 2014

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Disclaimer

» This document has been prepared by Espresso Group for information purposes only and for use

in presentation of the Group’s results and strategies.

» For further details on Espresso Group, reference should be made to publicly available

information, including the Annual Report, the Semi-Annual Report and Quarterly Reports.

» Statements contained in this document, particularly the ones regarding any Espresso Group

possible or assumed future performance, are or may be forward looking statements and in this

respect they involve some risks and uncertainties.

» Any reference to past performance of Espresso Group shall not be taken as an indication of

future performance.

» This document does not constitute an offer or invitation to purchase or subscribe for any shares

and no part of it shall form the basis of or be relied upon in connection with any contract or

commitment whatsoever.

Index

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» First Half 2014

» Full Year 2013 results and Company Overview

» Divisional Breakdown

» The Digital Strategy

» Additional Information

Gruppo Editoriale L’Espresso - Financial Highlights (1H 2014)

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ECONOMIC AND FINANCIAL RESULTS OF THE ESPRESSO GROUP AS OF JUNE 30 2014

Consolidated results (€mn) 1st Half

2013 1st Half

2014 %

2014/2013

Revenues, of which: 369.4 332.5 -10.0% circulation 123.2 114.8 -6.8% advertising 209.6 188.2 -10.2% other revenues 36.7 29.5 -19.6% Gross operating margin 33.3 33.7 +1.0%

Operating result 17.8 17.9 +0.8%

Result before taxes 12.5 10.8

Net result 3.7 3.8

(€mn) June 30

2013 Dec. 31

2013 June 30

2014

Net financial position (86.1) (73.5) (66.8) Equity of Group and minority shareholders 559.6 562.2 567.7 equity of the Group 557.7 560.2 565.8 minority shareholders’ equity 1.9 2.0 2.0 Employees 2,502 2,425 2,391

Index

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» First Half 2014





Gruppo Editoriale L’Espresso - Financial Highlights (FY 2013)

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ESPRESSO GROUP FINANCIAL RESULTS AS OF DECEMBER 31, 2013

Consolidated results (€M) Year 2012

Year 2013

% 2013/2012

Revenues, of which: 812.7 711.6 -12.4% circulation 263,2 248.0 -5.8% Add-on products 44,6 33.6 -24.6% advertising 476,3 403.0 -15.4% other 28,6 27.0 -5.3%Gross operating profit 102.4 63.5

Operating profit 60.4 31.3

Pre-tax profit 44.1 17.3

Net profit 21.8 3.7

(€M) December 31

2012 December 31

2013

Net Financial position (108.1) (73.5)Shareholders' Equity including minority interests 557.7 562.2 Shareholders’ Equity 555.9 560.2 Minority interests 1.8 2.0

Employees 2,536 2,425

Gruppo Editoriale L’Espresso at a glance

Gruppo Editoriale L'Espresso is one of the leading media groups in Italy with interests inNEWSPAPERS, MAGAZINES, RADIO, TV, INTERNET, and DIGITAL RADIO AND TV

Sources: Radiomonitor 2013 (radio) , Audipress 2013/(readership) , Internal estimates on ADS december 2013 (circulation) , AWDB and Nielsen Site Census (internet)

NATIONAL DAILY

• Circ. 324K• Read. 2,8 million

CO-LEADER IN NEWSMAGAZINES

RADIOGRUPPO ESPRESSO IS THE ONLY COMPANY WITH A LONG LIVED STRATEGY IN THE RADIO SECTOR:

• 3 NAT’L RADIO• 7.5 MLN COMB DAILY LISTENERS

• No. 1 READERSHIP• 19.4% MARKET SHARE

MAGAZINE

• Circ. 239K• Read. 2,0 millions+ 4 OTHER TITLES

LOCAL NEWSPAPERS18 NEWSPAPERS• Circ. 365K (ADS) • Read. 3,0 millions

ADVERTISINGSALES FOR GROUP’S TITLES &

THIRD PARTIES:• >480 sales agents• >300 employees

2013REVENUES 712EBITDA 64NET DEBT 74

INTERNET

GROUP’S NETWORK WEBSITES:• 1,8 millions unique users • 95K digital subscriptions

CONSOLIDATED RESULTS

TELEVISIONDEEJAY TV A NATIONAL TV NETWORK AIMED AT A YOUNG PUBLIC

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TWO DIGITAL MULTIPLEX LICENCES

Gruppo Editoriale L’Espresso - Market share and positioning: circulation

ITALIAN NEWSPAPER CIRCULATION AND MARKET SHARE 2013 (1)

Source: ADS December 2013 Total Circulation

Espresso

Group 19.4%Market Share of

Total Circulation (+0.2bp)

* 2013 vs 2012Total Circulation -10.9%Paid Circulation -10.1%

8(1) Internal estimates based on ADS December 2013 data

Not including digital subscriptions

Gruppo Editoriale L’Espresso - Add-ons

Add-ons have ensured an additional stream of revenues

€ mn

In 2013 market characterized, as expected by a strong contraction

The company focused on a smaller number of initiatives but with higher margin:

• 34m euro revenues

• 5,4m Ebit (17,7% margin up vs 2012)

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€m

Gruppo Editoriale L’Espresso - Italian advertising market

ITALIAN ADVERTISING MARKET

10(1) Internal estimates based on Nielsen, FCP data

€bn

Gruppo Editoriale L’Espresso - Contribution to year 2013 consolidated results

EBITDA MARGINS

REVENUES SPLIT (€712 million)

* including add-ons

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Repubblica -

Local Newspapers 17,7%

Radio 26,9%

Digital 18,9%

EBITDA margin 8,9%

TV 21,4%

Magazines -

In 2013, with the exception of the newspaper/magazines divisions, all other divisions had a positive Ebitda margin

Gruppo Editoriale L’Espresso - Cost reduction

• In 2009 Gruppo Editoriale L'Espresso S.p.A. approved

and announced a major plans of intervention aimed at

cost reduction:

― The overall savings were equal to approximately €160

million (20% of the costs recorded in 2008)

― In order to recover efficiency, the plan entailed

structural and permanent interventions addressed to

all Group's areas and functions

(1) Excluding extraordinary and amortization 12

In light of the market and economic scenario the Group is

continuously working and focalizing new action aimed at cost

reduction and efficiency. In 2013:

― total costs show a 9.6% reduction thanks to a further cost

reduction implemented in the year

― excluding digital edition and digital terrestrial television,

whose costs are increasing to support their development,

an 11% reduction has been recorded

Cost Management : 2012- 2013Cost Management : 2008-2012

In Millions of Euro 2012 2013Industrial and Technical costs 149,7 128,0 % on total costs 27% 26%Editorial costs 179,6 171,0 % on total costs 33% 34%Commercial costs 65,2 57,5 % on total costs 11,9% 11,5% Management & Administration costs 155,8 141,6 % on total costs 28% 28%

TOTAL GROUP'S COSTS - CORE BUSINESS 550,3 498,1 Digital and TV costs 58,6 58,6 Add-on, third parties sales and other costs 92,4 75,5

TOTAL GROUP'S COSTS (1) 701,3 632,2

Index

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» First Half 2014





Gruppo Editoriale L’Espresso - La RepubblicaCONTRIBUTION TO RESULTS

THE ONLY NEWSPAPER READ THROUGH ITALY

North West 22%

North East 22%

Center 28%

South 28%

2,8 millionsDAILY READERS

OVER 62% ARE 18 - 54 YEARS OLD

THE MAJORITY OF READERS CONSISTS OF:• COLLEGE AND UNIVERSITYGRADUATES

• MEMBERS OF UPPERSOCIO-ECONOMIC CLASSES

• HIGH RANKINGPROFESSIONALS

OVER 45% OF READERSARE ALSO DECISION MAKERSIN PURCHASES

SUPPLEMENTS- Il Venerdi (family, tv programming)- Affari&Finanza (business and finance)- D (women’s supplement)

Source: Audipress 2013/III and internal marketing research, , Internal estimates on ADS december 2013

Divisional data do not include add-ons

Total Circulation324K

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Paid Circulation281K

No. 1 in READERSHIP and in

the PAID daily newspaper market

In Millions of Euro FY 12 FY 13Revenues 277,7 234,5 - Circulation 116,3 107,3

- Advertising 159,2 125,5

- Others 2,2 1,7

EBITDA 16,8 (1,4)

Margin 6,0% -0,6%EBIT 12,0 (4,0)

Gruppo Editoriale L’Espresso - Local newspapers

Il Tirreno

La Nuova Sardegna

Il Mattino di Padova

La Tribuna di Treviso

La Nuova Venezia

La Provincia Pavese

Il Centro

La Gazzetta di Mantova

La Gazzetta di Reggio

La Gazzetta di Modena

La Nuova Ferrara

Alto Adige

Corriere delle Alpi

La Città di Salerno

Il PiccoloMessaggero Veneto

La Sentinella

LOCAL NEWSPAPERS

LOCAL NEWSPAPERS

Total circulation 365K

3,0 millions readers per day

Trentino

CONTRIBUTION TO RESULTS

15Source: Audipress 2013/and Internal estimates on ADS december 2013. Divisional data do not include add-ons



- Others 1,9 2,0

EBITDA 34,3 32,6

Margin 16,8% 17,7%EBIT 25,4 26,9

Gruppo Editoriale L’Espresso - Magazines

MAGAZINES

Circulation 239K

2,0 millionsREADERS PER ISSUE

Over 60% ARE 18-54 YEARS OLD

OVER 71% ARE COLLEGEAND UNIVERSITYGRADUATES

Source: Audipress 2013/and internal marketing research and internal estimates on ADS december 2013

Divisional data do not include add-ons


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Others Magazines

NatureScience Politics Geopolitics



- Others 0,5 0,7

EBITDA (5,0) (5,2)

Margin -12,9% -17,0%EBIT (5,4) (5,5)

Two magazines have been

discontinued

MARKET OVERVIEW - RADIOAge-group target: under 44 years old (80%)

4.9 mln daily listenersOver 50% are under 34 years oldOver 50 % are college / university graduates

Source: Radiomonitor 2013 and internal marketing research

Gruppo Editoriale L’Espresso - Radio


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Age-group target: 25 – 54 years old (70%)

1.7 mln daily listenersOver 40% are 25-44 years oldOver 76 % are employees

Age-group target: under 24 years old (50%)

1.8 mln daily listenersOver 70% are under 34 years old

In Millions of Euro FY 12 FY 13Revenues 60,5 54,3 - Advertising 57,7 52,2

- Others 2,8 2,1

EBITDA 20,8 14,6

Margin 34,4% 26,9%EBIT 18,0 11,7

1 RTL 6.9302 DJ 4.8983 R105 4.7144 RDS 4.6995 RI 4.6016 RAI1 4.2047 RAI2 2.9488 VIRGIN 2.3629 R24 2.04610 KKISS 1.88111 R101 1.87012 m2o 1.75813 CAP 1.74614 RAI3 1.36315 RMC 1.231

Gruppo Editoriale L’Espresso – TV

The new national and generalist channel “Deejay TV” was born in November 2009. The brand of the leading Espresso Group “Radio Deejay” - already available on the Internet, podcast, mobile, and satellite TV - has thus been strengthened. Programming based on entertainment, movies, TV series and news (three daily news editions).


The transition to digital terrestrial transmission was completed in first half 2012 with DTT channels lease to third parties plus intercompany (i.e. LCN 9 DeeJay TV)

In June 30 ‘14 closing of the agreements to merge the network operator businesses of TIMedia and Espresso in Persidera (new name): TIMedia and Espresso will each hold 70% and 30% The integration of five muxes, would create Italy's

leading independent network with significant industrial synergies

The company will have a annual turnover (2013 pro-forma data) of approximately 100 million euro, a positive income and healthy cash generation

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The division includes the activities of Rete A (owner of an analog channel) and of two digital multiplex licenses, and the publishing activity of Deejay TV, the television channel that replaced All Music

In Millions of Euro FY 12 FY 13Revenues 28,4 25,2 - Advertising 10,3 7,7

- Others 18,1 17,6

EBITDA 3,5 5,4

Margin 12,3% 21,4%EBIT (8,9) (9,6)

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Gruppo Editoriale L’Espresso - Digital Division key figures

In Millions of Euro FY 12 FY 13Revenues 52,6 55,7

- Advertising 43,7 44,0 - Subscriptions and others 8,9 11,7

EBITDA 12,5 10,5

Margin 23,8% 18,9%EBIT 11,9 9,8


Digital Division: established in 2009 with full responsibility on online strategy across all media. About 180 staff (of which 85 journalists). First 24H coverage online-news service

Revenues break down:

• ~ 60 % national, ~ 15% local ~ 25% other

• ~80% Adv ~ 20% subscriptions & others

Costs break down (as of % of revenues):

• ~ 40 % contents, ~ 14% IT platform ~ 17% other

Direct cost allocation approach as % of print contents is limited

Local

News andinformation

Classified

Entertainment

• Repubblica.it is the main information site in Italy, conceived to be fully “digital” with a very limited contribution (<10%) of printed contents; positioned on “real time” news, strongly integrates video contents (from “content to be read” to “content to be seen”)

• Focus on brand extension (i.e. integration between Internet and TV), vertical strategy (i.e. D lifestyle, Finance with Bloomberg, Sport) and international partnership (i.e. Huffington Post)

• New restyling with the same look and feel introduce in all the 18 local web sites with strong web traffic growth in 2013

• Leadership in local community news, focusing on real time, video, sport and user generated community contents

• Broad and diversified entertainment media portfolio with interesting potentials in revenues other than advertising (i.e. video on demand, self publishing)

• Main focus on Legal, Jobs and free Classified (registration)

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Index

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» First Quarter 2014





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The Digital strategy – The online advertising market in Italy and in Europe

(1) (2) Source: IAB Europe report 2012/2013 and 2007

Italy - online advertising market (1)

€m

• The online advertising industry in Italy has experienced strong growth

• Display ads is our main reference market

Benchmarking - online advertising market (1)

€m

The online advertising market in Italy (including search and classified) is still underdeveloped compared to Continental Europe

~115~55 ~57~28Online adv. per Capita (€)

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The Digital strategy – Focus on the advertising (revenues and usage)

(1) Source FCP Internet (2) FCP and internal estimates(3) Source: Audiweb December 2013

Italy – Online Advertising Display Market (1) Italy – Online Advertising Video Display Market (2)

~10%Market share

€m €m

• Gruppo Espresso online properties rank 9° overall in Italy, and rank 3rd if we exclude the global international players

• Repubblica.it, main digital asset of the Group: ― “Real time news” positioning

―Higher reach than any other Newspaper / TV

―Extremely strong presence in social networks:

• 3,0m fans on Fb/Twitter/G+ main page

• 5,5m followers of vertical topics on Fb

―Well balanced traffic origination (direct vs. indirect)

― Leadership in the video market in terms of usage

Italy – Online Reach Traditional Newspaper (3)Italy – Online Usage Key assets (3)

44mrevenues

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The Digital strategy – Focus on the current digital Subscriptions offering (for Repubblica, R+ brand)

Gruppo Espresso -Tablet Replica-only Subscribers (1)

As of December 2013

Local

Others

# of iPad/Tablets (2)

• The high penetration on iPad / Tablet devices of la Repubblica readers accounts for the fact that most early adopters are likely to be newspaper readers. However such penetration will decrease as tablets/smartphones become mass-market devices.

• New actions expected in 2014 to promote digital subscriptions:

― Launch of L’Edicola Italiana (digital newsstand) a consortium of six media groups

―Corporate offering agreement (i.e. agreement with Telecom Italia mobile)

• Further focus to develop the 27k mobile subscribers (not included in figures)

Penetration on iPad/Tablets ~2.9%

(1) Excluding mobile (2) GFK data

Not including

27K mobile

La Repubblica

~2.1M

~2.0%

~3.5M

12mrevenues

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The Digital strategy – La Repubblica Print vs online positioning

Source: (1) AWDB – Audiweb – Unique Browser; (2) Audipress 2013 / III readers (3) Online Active subscribers (4) Kiosk sales 20123(5) La Repubblica advertising only

2013: Daily Readers/Browsers

Within La Repubblicacore asset, the online business has the best product positioning and provides further earning opportunities

as the number of online

users/subscribers grows

Online(1)Print (2)

2013: Daily pay circulation

~281K

Online(3) Print (4)

FY ‘13 - Advertising100%=~153M€

Online(5)

24%

Print (5)

76%

FY ‘13 – Subscribers revenues

100%=~113M€

Print (4)

95%

Online(3) 6%

~48K (Dic ‘13)

~2,8M

~1,4M

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The Digital strategy - La Repubblica.it international benchmark vs online newspaper and TV

High domestic

reach

Online Newspaper TV and broadcaster

Low domestic

reach

In countries like UK and USA the “real time news” online market has been mainly developed by the existing TV broadcasters (with the exception of Daily Mail in UK)

In countries like Germany/ Italy/France/Spain newspapers have been the first entrants in the “real time news” online market

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The Digital strategy - Repubblica.it reach (domestic): international benchmarking vs online newspapers

Thanks to its specific positioning Rep.it has a higher domestic reach than most of its international peers in its own country

Rep.it is a product conceived to be fully “digital” with a very limited contribution (>10%) of printed contents, focusing on “real time” news and video (from “content to be read” to “content to be seen”)

Reach % (1)

(1) Source: Internal estimates on market data

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The Digital strategy - La Repubblica.it “Real time news” and Repubblica TV positioning

• Take advantage in the expected integration between Internet and TV (Repubblica TV is part of the Digital Division)

• Repubblica.it on the PC «real time news» has a separate positioning than Mobile (freemiummodel) and Tablet (pay model)

Main strategic drivers

• Strengthening of the news video production both in terms of quality and quantity

• Focus on sub-brand strategy (thematic areas):―Entertainment ― Life style and fashion ―Sport―Business and finance―Auto― Technologies

• New advertising formats

Main Actions

Italy – Online Reach vs TV (1)

(1) Source: Audiweb January 2014

In Italy Rep.it is perceived more as a «real time news» online site than an «online newspaper» and has a brand awareness that is higher than the traditional TV news sites.

Rep.tv brand in the

Repubblica.it homepage

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The Digital strategy – La Repubblica branding strategy

• Repubblica.it is the Italian «real time news» online provider

• Further convergence between “written” information and video (i.e. from “content to be read” to “content to be seen”) is expected

To take advantage of the expected integration between Internet and TV on the new devices (i.e. Smart TV) further development in the Repubblica TV brand is planned

R+ will be the premium/pay brand for all the platforms. Introduction on all platforms (including PC) of new “modular” payments form adapted to users’ needs and profile

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The Digital strategy – La Repubblica.it “metered pay-wall” options

% of printed contents available in the desktop/laptop version

Focus on online-only

contents (i.e. real time,

video)

100%

High

Focus on photos videos,

everyday day life, showbiz

and gossip

Focus on real time-news and comments with video

and rich-info bundled

50%

Focus on politics and

in-depth contents (i.e.

opinion)

1

1

2

3

2 3

• The introduction of a “metered pay-wall ” system is an option that supports in-depth news vs. real-time contents.

• Today, less than 10% (vs 100% of NYT) of the La Repubblica printed contents are available online (i.e. “real time news” positioning)

• “Soft" metered pay-wall approach is the benchmark (i.e. NYT introduction in 2011 with 20 free articles a month, now down to 10 articles)

• According to Press+ (provider of pay-wall tools):

“Traffic loss from implementing paid model has ranged from 0%-20% of page views and 0%-7% of monthly unique visitors.

No publisher has reported any decline in advertising revenue. This is because most publishers do not sell all of their available inventory

10%

Today

Tomorrow

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The Digital strategy - Local online is a big opportunity

Main Data• Strong usage growth in 2013 (1) . 12 out of 18 local web

sites grow more that 13% yoy• Video syndication project: 14 third party local publishers ,

31 web sites 1,4 m di streaming in February 14• Leadership in local community news• Growing (+25%) digital subscriptions (~12K)

Main data and strategic drivers Italy – Usage Growth (1)

CAGR ~30%

(1) Source: Audiweb Data Base

Traffic growth mainly related to news

Strategic drivers• Launch of new web sites (by September) and mobile

version (by December) • Fostering leadership in local community news with focus

on real time, events “trovaserata”, video and sport• Deployment on all sites of the user generated community

contents “Faccionotizia” today in beta test on the Tirrenoweb sites

• Further area of development already identified

News

Local SportLocal Life

Journalistic approach: Leadership in local news

Not Journalistic approach: External information, UGC, community

(‘000)

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The Digital strategy – A broad and diversified entertainment media portfolio

Web sites revised in February ‘14. The social TV guide at the intersection of television and digital with the introduction of socialscore to measure the popularity of TV programs . Tvzaphas a reach of 114K daily unique users and 16mln monthly page views

Market leader with online reach of over 100K daily unique users (+23% vs competitor) and >1.7 m download for the mobile application. New web sites launched in June ’13 with focus on entertainment and engagement (i.e.viral videos, photo galleries and contents)

Social self publishing platform with a community of almost 130K registered users. The website offers a self-publishing service, a dedicated area of writing tips and a catalog of 30,000 books distributed in bookstores and in the main Italian and international ebookplatform

Social gaming (fantasy soccer) with a community of over 130K registered users. For next soccer season a deep redesign of the sites is planned to re-launch this strong and historical brand

Database 2000

Services 2003

Information 2004

Multimedia 2005

Community 2010

Entertainment 2013-2014

Radio’s Brands

Movies and TV guide

Leader in movies and cinema contents (with 3 million monthly unique users, a community with over 200,000 users' reviews, database with over 1 million pages, complete coverage of cinema screenings). 2010 launch of MYMOVIESLIVE!, and in December 2012 of MYMOVIESWIDE! (VOD)

Gaming

Self Publishing

(1) Source: Audiweb 2013 and internal data

Index

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» First Half 2014





Gruppo Editoriale L’Espresso – Financial Highlights (Year-end)

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(1) In 2005, the income statement includes the impact of paper contributions (€15.1 millions), no longer available in 2006

(2) In 2007 Financial results have benefited from two extraordinary effects produced by new regulatory provisions: the different accounting applied to the employee terminationindemnity (TFR) entailed a €7.8 millions positive impact on net profit (€11.6 millions on operating profit); the reduction of both regional tax (IRAP) and income tax (IRES) entailed a recalculation of deferred taxes and subsequent €10.3 millions positive impact on net profit

(3) In 2011 and 2012 digital subscription revenues included in “circulation”

(€ mn) 2004 2005 ( 1) 2006 2007 ( 2) 2008 2009 2010 2011 (3) 2012 (3) 2013 (3)

Revenues 1.081 1.080 1.103 1.098 1.026 887 885 890 812 712- Circulation 269 266 266 277 276 274 268 271 262 251- Add-ons 227 201 193 128 115 101 66 63 49 30- Advertising 546 586 616 657 608 497 528 535 476 403- Other 38 28 28 36 26 15 22 21 26 27EBITDA 234 222 204 223 143 107 147 160 102 64EBIT 192 177 163 181 95 64 109 123 60 31Profit before Taxes 175 152 144 163 76 44 95 108 44 17Net Profit 99 116 104 96 21 6 50 61 22 4Net Debt (143) (253) (263) (265) (279) (208) (135) (110) (108) (74)Capital Employed 638 813 836 811 768 704 678 675 666 638Shareholders' Equity 484 550 563 535 478 486 539 563 556 562Minority Interests 11 11 11 11 11 10 4 2 2 2Dividends 47 56 62 67 69 - - 30 25 -Capex 94 64 38 41 53 25 25 15 28 21RATIOSEBITDA margin 21.7% 20.6% 18.5% 20.3% 13.9% 12.0% 16.6% 17.9% 12.6% 8,9%EBIT margin 17.8% 16.4% 14.8% 16.4% 9.3% 7.2% 12.3% 13.8% 7.4% 4,4%Net Debt/EBITDA 0.6x 1.1x 1.3x 1.2x 2.0x 2.0x 0.9x 0.7x 1.06x 1.15xROCE 30.1% 21.8% 19.5% 22.3% 12.4% 9,1% 16,1% 18,1% 9,1% 4,9%Net Debt/Shareholders' Equity 29.6% 45.9% 46.7% 49.5% 58.3% 42.9% 25.0% 19.6% 19.5% 13.1%

Gruppo Editoriale L’Espresso - Ownership structure

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