M e d i a s e t G r o u p 11 th May 2004 2004 First Quarter Results
M e d i a s e t G r o u p BROADCASTING
MEDIASET 2004 1Q 24 Hours Audience Trend Individuals Share Points Vs 1Q 2003 OTHER SATELLITE 44.0% 44.4% 2.2% 3.7% +0.3-1.3 +0.1 +1.5 Stable Growth OTHER TERRESTRIAL 5.8% -0.6 Source: Auditel, Individuals BROADCASTING 3
MEDIASET 2004 1Q Still Leader in Prime Time Individuals Commercial Target (15-64yrs) 45.0% 44.5% 46.6% 42.3% Source: Auditel BROADCASTING 4
MEDIASET 2004 1Q Channel Ranking PRIME TIME Individuals 15-64 yrs 15-34 yrs RAI 1 25.7 CANALE 5 26.2 CANALE 5 29.1 CANALE 5 24.8 RAI 1 23.6 RAI 1 20.0 ITALIA 1 11.2 ITALIA 1 12.4 ITALIA 1 16.1 RAI 2 9.5 RAI 2 9.8 RAI 2 8.8 RAI 3 9.4 RAI 3 9.0 RAI 3 7.5 RETE 4 9.0 RETE 4 8.1 RETE 4 6.9 Source: Auditel BROADCASTING 5
MEDIASET 2004 1Q CANALE 5: Audience Share PEAK TIME (21:00 23:00) Share Points Vs 1Q 2003 Share Points Vs 1Q 2003 INDIVIDUALS 24.6% +1,4 24.2% = 15-64 yrs 25.7% +1.6 22.1% -0.5 Source: Auditel BROADCASTING 6
MEDIASET 2004 1Q Ad Break Audience Performance PEAK TIME (21:00 23:00) Individuals Commercial Target (15-64yrs) 13.6% 31.7% 5.333 3.773 4.696 2.864 Source: Auditel BROADCASTING 7
MEDIASET 2004 1Q ITALIA 1: 3rd Channel in Prime Time Individuals 11.2% 9.5% Commercial Target (15-34yrs) 16.1% 8.8% Source: Auditel BROADCASTING 8
MEDIASET 2004 1Q RETE4: Strong Growth PRIME TIME Share Points Vs 1Q 2003 INDIVIDUALS 9.0% +1.1 MALE TARGET 9.5% +1.7 Source: Auditel BROADCASTING 9
MEDIASET 2004 1Q Ad Break Audience Performance 24 HOURS % Vs Estimated Impacts JANUARY FEBRUARY MARCH INDIVIDUALS +2.3 +0.6 +2.7 HOUSEWIVES* +1.1 = +2.5 15-34 yrs +3.0 = +4.9 Source: Auditel * Women over 20 yrs BROADCASTING 10
M e d i a s e t G r o u p ADVERTISING 2004 First Quarter Results
MEDIASET 2004 1Q Advertising Revenues 692.2 692.6 +55.9ml 748.5 ADV Revenues +8.1% Vs 1Q 2003 2002 1Q 2003 1Q 2004 1Q ADVERTISING 12
MEDIASET 2004 1Q 4-YEAR Advertising Trend 113 106 103 103 100 101 99 95 107 2000 1Q 2001 1Q 2002 1Q 2003 1Q 2004 1Q Source: Infoadex Nielsen Estimates ADVERTISING 13
ITALIAN MARKET 2004 1Q Advertising Trend by Sector 2004 vs 2003 FINANCE/INSURANCE TELECOM AUTOMOTIVE MEDIA & PUBLISHING RETAIL +33.6% +21.3% +12.8% +24.5% +46.2% ADVERTISING 14
MEDIASET 2004 1Q Advertising by Sector 1Q2004 (ml ) 2004 vs 2003 2003 vs 2002 FOOD 210-2.1% +2.7% NON FOOD 120 +4.4% -7.5% AUTOMOTIVE 92 +13.8% +2.0% FINANCE/INSURANCE 23 +55.2% -28.7% TELECOM 72 +9.6% +8.8% MEDIA & PUBLISHING 78 +29.7% +22.4% ADVERTISING 15
MEDIASET 2004 1Q New Clients Acquisition Policy Active Clients New Clients in 1Q 2004 2002 596 New Clients 66 2003 588 Revenues 12.8 ml 2004 587 ADVERTISING 16
M e d i a s e t G r o u p BROADCASTING 2004 First Quarter Results
TELE5 2004 1Q TV Audience Share PRIME TIME Individuals Commercial Target 24,1 23,9 26,8 28,3 22,5 22,8 19,0 19,2 18,3 17,8 20,1 18,8 17,0 20,0 18,8 16,0 2003 2004 2003 2004 Source: Sofres, Prime Time, Individuals (4+ years), Commercial Target (13-54 years) BROADCASTING 18
TELE5 2004 1Q TV Audience Share 24 Hours Individuals Commercial Target 23,7 22,9 24,7 25,2 21,4 19,7 18,8 22,1 20,1 17,7 21,0 19,5 16,6 21,4 18,9 15,7 2003 2004 2003 2004 Source: Sofres, 24 hours, Individuals (4+ years), Commercial Target (13-54 years) BROADCASTING 19
M e d i a s e t G r o u p ADVERTISING 2004 First Quarter Results
TELECINCO 2004 1Q Advertising Revenues +21.2% +28.2% 169.5 139.8 109.1 ADV Revenues +21.2% Vs 1Q 2003 ( ml) 2002 2003 2004 Source: Publiespana ADVERTISING 21
M e d i a s e t G r o u p 2004 First Quarter Results
MEDIASET GROUP Consolidated Results ( ml.) 1Q 2004 1Q 2003 Net Consolidated Revenues Operating Costs EBITDA Amortisation & Depreciation EBIT pre Goodwill Amortisation Tele5 Goodwill Amortisation EBIT Pre-Tax Profit 850.7 (355.9) 494.8 (209.8) 285.0 (10.8) 274.2 274.1 777.1 (309.1) 468.0 (248.6) 219.4 (10.8) 208.6 191.1 23
ITALIAN BUSINESS 24
MEDIASET ITALIAN BUSINESS Financial Results ( ml.) 1Q 2004 1Q 2003 Net Consolidated Revenues Operating Costs EBITDA Amortisation & Depreciation EBIT Pre-Tax Profit 677.6 (281.1) 396.5 (168.4) 228.1 226.7 634.8 (243.7) 391.1 (199.6) 191.5 173.6 25
MEDIASET ITALIAN BUSINESS Operations Breakdown ( ml.) Total Net Revenues EBIT EBIT margin TV Operations 653.6 234.9 35.9% Non TV Operations 20.1 2.1 10.4% DTT Operations 3.8 (8.8) n.a. 677.6 228.1 33.7% 26
MEDIASET ITALIAN BUSINESS TV Operations ( ml.) 1Q 2004 1Q 2003 D % Total Net TV Revenues 653.6 614.9 +6,3% TV Advertising Revenues 748.5 692.6 Other TV Revenues 13.5 9.9 Sale of Rights 3.6 14.5 Commissions (111.9) (102.2) Total TV Costs (418.8) (423.9) -1.2% Personnel (76.5) (74.8) TV Operating Costs (180.5) (152.8) TV Amortisations (144.3) (176.2) Other Amortisations & Depreciations (17.5) (20.0) EBIT from TV Operations 234.9 190.9 +23,0% margin 35.9% 31.1% 27
MEDIASET ITALIAN BUSINESS Non TV Operations ( ml.) 1Q 2004 1Q 2003 Total Non TV Revenues Thematic Channels Teletext Internet Other Non-TV Revenues Total Non TV Costs Personnel Multimedia Operating Costs Non-TV Operating Costs Amortisations & Depreciations EBIT from Non TV Operations margin 20.1 7.7 1.4 3.6 7.5 (18.0) (2.6) (6.3) (6.1) (3.0) 2.1 10.4% 20.0 5.6 1.4 2.5 10.6 (19.0) (2.7) (6.2) (6.8) (3.3) 0.9 4.5% 28
MEDIASET ITALIAN BUSINESS DTT Operations ( ml.) 1Q 2004 1Q 2003 Total DTT Revenues 3.8 0.0 Total DTT Costs Personnel DTT Operating Costs Amortisations & Depreciations (12.7) (1.8) (7.3) (3.6) (0.4) (0.1) (0.3) (0.0) EBIT from DTT Operations (8.8) (0.4) 29
MEDIASET ITALIAN BUSINESS Non Operating Items ( ml.) 1Q 2004 1Q 2003 ALBACOM (19.5% stake) Others Total Associates Net Financial Income/(Charges) Total Extraordinary Items (2.4) (0.1) (2.5) 1.4 (0.3) (10.3) - (10.3) (7.5) (0.1) 30
MEDIASET ITALIAN BUSINESS Cash Flow Statement ( ml.) 1Q 2004 1Q 2003 Net Financial Position 1/1 Free Cash Flow Cash Flow from Operations Investments Disinvestments Change in Net Working Capital Equity (Investments)/Disinvest. Dividends Cashed-in Dividends from Tele5 Total Net Cash Flow Net Financial Position 31/3 (451.4) 356.3 440.7 (136.2) 0.4 51.4 - - - 356.3 (95.1) (170.8) 201.5 388.7 (133.8) - (53.4) (276.0) - - (74.5) (245.3) 31
MEDIASET ITALIAN BUSINESS Investments 136.2 ml. 133.8 ml. 7.1 3.4 4.8 5.9 1Q 2004 125.7 1Q 2003 123.0 TV Rights Technical & Immaterial DTT investments ( ml.) 32
TELECINCO 33
TELECINCO Financial Results ( ml.) ITALIAN GAAP 1Q 2004 1Q 2003 Total Net Revenues Total Costs Personnel Operating Costs Amortisation & Depreciation EBIT Pre-tax Profit 173.2 (116.4) (16.8) (58.1) (41.5) 56.8 58.1 142.3 (114.4) (16.1) (49.3) (49.0) 27.9 28.3 34
TELECINCO Cash Flow Statement ( ml.) ITALIAN GAAP 1Q 2004 1Q 2003 Net Financial Position 1/1 Free Cash Flow Cash Flow from Operations Investments Disinvestments Change in Net Working Capital Equity (Investments)/Disinvest. Dividends Total Net Cash Flow Net Financial Position 31/3 252.1 58.9 91.6 (58.4) 0.6 25.1 - - 58.9 311.0 142.3 43.5 70.1 (52.6) - 26.0 - - 43.5 185.8 35
MEDIASET GROUP Back up Slides 36
MEDIASET GROUP Consolidated Results ( ml.) 1Q 2004 Consolidated 1Q 2004 Mediaset 1Q 2004 Telecinco Consolidation Effects Net Consolidated Revenues 850.7 677.6 173.2 (0.1) Operating Costs (355.9) (281.1) (74.9) 0.1 EBITDA 494.8 396.5 98.3 - Amortisation & Depreciation (209.8) (168.4) (41.5) - EBIT pre Goodwill Amortisation 285.0 228.1 56.8 - Tele5 Goodwill Amortisation (10.8) - - (10.8) EBIT 274.2 228.1 56.8 (10.8) Pre-Tax Profit 274.1 226.7 58.1 (10.8) 37
MEDIASET GROUP Consolidated Cash Flow ( ml.) 1Q 2004 1Q 2003 Net Financial Position 1/1 Free Cash Flow Cash Flow from Operations Investments Disinvestments Change in Net Working Capital Change in Consolidation Area Equity (investments)/disinvest. Dividends Total Net Cash Flow Net Financial Position 31/3 (*): including 142.3m. Tele5 1/1/2003 Net Financial Position (199.3) 415.2 532.3 (194.6) 1.0 76.5 - - - 415.2 215.9 (170.8) 111.3 458.8 (186.4) - (27.4) (133.7) * - - 111.3 (59.5) 38
MEDIASET ITALIAN BUSINESS Back up Slides 39
MEDIASET ITALIAN BUSINESS Revenues Breakdown ( ml.) 1Q 2004 1Q 2003 Total Net TV Revenues TV Advertising Revenues Other TV Revenues Sales of Rights Commissions Total Net Multimedia Revenues Non TV Revenues DTT Revenues Total Net Revenues 653.6 748.5 13.5 3.6 (111.9) 12.6 7.5 3.8 677.6 614.9 692.6 9.9 14.5 (102.2) 9.4 10.6-634.8 40
MEDIASET ITALIAN BUSINESS Operating Costs Breakdown ( ml.) 1Q 2004 1Q 2003 Personnel Costs TV Operating Costs Commercial Costs In-house Production Transmission Costs Overheads Multimedia Operating Costs Non TV Operating Costs DTT Operating Costs Total Operating Costs (80.8) (180.5) (20.5) (138.0) (7.0) (15.0) (6.3) (6.1) (7.3) (281.1) (77.6) (152.8) (19.8) (111.0) (7.9) (14.1) (6.2) (6.8) (0.3) (243.7) 41
MEDIASET ITALIAN BUSINESS Amortisation & Depreciation -15.6% Depreciation And Other Amortisation ( ml.) 168.4 24,0 +2.6% 199.6 23.4 TV Rights Amortisation ( ml.) 144.3-18.1% 176.2 1Q 2004 1Q 2003 42
TELECINCO Back up Slides 43
TELECINCO TV Revenues Breakdown ( ml.) ITALIAN GAAP 1Q 2004 1Q 2003 Net TV Advertising Revenues Gross TV Advertising Revenues Agency Commissions Other Net Revenues Total Net Revenues 158.6 169.5 (10.9) 14.6 173.2 128.5 139.9 (11.4) 13.8 142.3 44
TELECINCO TV Operating Costs Breakdown ( ml.) ITALIAN GAAP 1Q 2004 1Q 2003 Personnel Costs TV Operating Costs Commercial Costs In-house Production Transmission Costs Overheads Total Operating Costs (16.8) (58.1) (1.1) (42.5) (4.3) (10.2) (74.9) (16.1) (49.3) (1.5) (35.3) (4.5) (8.0) (65.4) 45
TELECINCO Amortisation & Depreciation ( ml.) ITALIAN GAAP 41.5-15.4% 49.0 5,1 Other Depreciation & Amortisation ( ml.) 3,7-27.5% TV Rights Amortisation & Depreciation ( ml.) 37,8-13.9% 43,9 1Q 2004 1Q 2003 46
TELECINCO Non Operating Items ( ml.) ITALIAN GAAP 1Q 2004 1Q 2003 Total Associates 0.1 (0.7) Net Financial Income/(Charges) 1.4 1.5 Total Extraordinary Items (0.2) (0.4) 47
TELECINCO Investments 58.4 ml. 52.6 ml. 1.4 2.0 1Q 2004 57.0 1Q 2003 50.6 TV Rights Tangible & Intangible Fixed Assets ITALIAN GAAP 48
DISCLAIMER Statements contained in this document, particularly the ones regarding any Mediaset Group possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. Mediaset Group actual results and developments may differ materially from the ones expressed or implied by the above statements depending on a variety of factors. Any reference to past performance of Mediaset Group shall not be taken as an indication of future performance. The content of this document is not, and shall not be considered as, an offer document or an offer or solicitation to buy or sell any stock. 49