1. 2011-2013 Strategic Plan
Presentation to the Financial Community
Milan, December 17, 2010

2. Agenda
• Executive Summary
• Strategic Guidelines
• Revenues / EBITDA targets 2010-2013
• Organization and HR
• Economic and Financial Management’s key elements
• Details by Business Unit
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Milan, 17 December 2010

3. Executive Summary (I)
• The markets of reference for RCS are facing a process of radical transformation due to the
following:
– Technological innovation
– Transformation of purchase behavior and consumption of readers and of advertisers
– Entrance of new competitors
• The change in the media sector shows:
– Traditional media markets shrinking, with the exception of books
– Growth in digital advertising, but still not sufficient to compensate the decrease in traditional
businesses
– Crisis in the traditional business model
– Emerging opportunities to develop revenues from digital activities (e.g. digital pay models, video
web and tv, direct marketing CRM, integrated advertising projects…) with still limited volumes but
significant potential
• Necessity to align strategies, organization and competencies for the new arising challenges,
especially in these times of uncertainty
• In the new scenario, RCS wants to be a Media Group leader in quality content, multimedia and
international, and in the development of the Strategic Plan 2011-2013 the following objectives
have been stated:
– Consolidate the sustainability and guarantee the continuity of the Group
– Be ready to exploit any emerging opportunities, despite the difficult predictability
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Milan, 17 December 2010

4. Executive Summary (II)
• Strategic Plan 2011-2013 guidelines:
– Strengthen quality editorial production, rethinking products and offers
– Expand relations with clients and advertising investors to increase and consolidate loyalty
– Develop the multimedia and digital publishing evolution of the Italian and Spanish Power Brands,
Vertical Magazines and Books
– Redesign the business model mainly regarding revenues, Group organization, new organization
of work and above all company competencies
– Focus the investments and the ambition to grow in Italy and abroad to defend traditional
publishing and to develop multimedia and digital businesses, disinvesting from non core assets
• Strategic Plan economic targets from 2010 to 2013 are:
– Revenues: from 2.259 (1) to 2.453 million Euro
– EBITDA: from 197 (1) to 296 million Euro
– EBITDA margin: from 8,7% (1) to 12%
– Net Financial Position: from - 979 to - 677 million Euro
4 1. Includes GE Fabbri in 2010, EBITDA ex non recurring items
Milan, 17 december 2010

5. Agenda
• Executive Summary
• Strategic Guidelines
• Revenues / EBITDA targets 2010-2013
• Organization and HR
• Economic and Financial Management’s key elements
• Details by Business Unit
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Milan, 17 December 2010

6. Strategic Plan 2011-2013 - Objectives
Revenues In this uncertain market, the Strategic Plan
Transformation of the 2011-2013 propose two objectives:
Rationalization business model for
through the crisis the sustainability of
the Group 1 Consolidate the sustainability and
guarantee the continuity of the Group:
– Efficient cost structure
Business – Revenue mix with higher importance of
digitale digital business
– Sound balance sheet
Business
tradizionale
2 Be ready to exploit any emerging
opportunity, despite the difficult
predictability
– Business model evolution
2008 - 2010 2011 - 2013 – Organizational alignment
– Competencies to manage the new
business model
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Milan, 17 December 2010

7. The mission of Group RCS remains unchanged
International and Multimedia
Publishing Group,
leader in quality content
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Milan, 17 December 2010

8. Strategic Guidelines of the Group
Focused
investments and Focus on
growth ambitions customer
relationship
Create quality
publishing
contents
Be a multimedia
and digital
reality
Re-design the
business model
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Milan, 17 December 2010

9. Cross section projects
Business Areas
Newspapers Books Italy Advertising Unidad
Italy Magazines and France House Editorial Others
Publishing product
Review
CRM/
consumers
Strategic
Digital publishing
working content pay model
groups
TV/Video
Presence Organization &
E-reading and Competencies
e-books
Adv House
Model Review
Organization
work Operations
groups
ICT Platforms
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10. Create quality publishing contents
1 “Quality” journalism
Multimedia and information hierarchy between different
2
platforms/media and products
3 The importance of video in multimedia offering
4 Target readers/customers and engagement methods
New product concept with a different format and content mix (local
5
information, reports, …)
6 Safeguard circulation and weekly purchase frequency
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Milan, 17 December 2010

11. Focus on customer relationship
Objectives Description
Improve publishing • Direct feedback system to better understand the readers
product
• Continuous monitoring of customer base
Increase customer • Specific loyalty programs at both single Brand and Group level
loyalty
• Direct Marketing for the Group publishing products
Higher support
of the three main • Optimization of total offer through events, promotions, etc…
revenue streams
Creation and maintenance of a cross division database on
country basis and development of competencies
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Milan, 17 December 2010

12. Be a multimedia and digital reality - Digital
Free Digital Pay model
Web
(PC+Tablet) Smartphones Web (PC+Tablet) Smartphones Tablet application
CdS DIGITAL EDITION
GdS DIGITAL EDITION
GAZZETTA.IT PREMIUM1
CORRIERE.IT PREMIUM1
GAZZETTA.IT
CORRIERE.IT
EL MUNDO DIGITAL EDITION
MARCA DIGITAL EDITION
EXPANSION DIGITAL EDITION
ELMUNDO.ES
MARCA.COM
EXPANSION.COM
12 1. News selection / elaboration / opinions / video / website images, available exclusively for a fee
Milan, 17 December 2010

13. Be a multimedia and digital reality – Video Web
Power Brands’ websites
Italy Spain number of streaming (estimate)
# streaming
(Million)
Brands 800
610
600
519 605
• Video news 437
413
• Sport rights 400
• Magazines 324
285
Format • Documentaries 202
• Talk show 200
Italy
• Live event
Spain
• Video chat
0
2010 2011 2012 2013
Platforms
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Milan, 17 December 2010 Source: RCS and BCG

14. Be a multimedia and digital reality - E-reading
Fiction/Non Fiction and
Partworks Education
“Traditional” eBook (2013, ~3000 titles): eBook:
• All the new releases + selected back list • Conforming to the educational reform
(from 2012 there is an obligation to provide
“Native" eBook / Apps (2013 ~70 Apps) digital versions)
• 6 Areas:
Product
Partworks Illustrated
Famous Authors Comics (France)
Children’s book Contents service
eBook price ~30% lower than paper eBook school text price bounded by
version governmental policies
• Review of the pricing policies
Pricing Evaluation of optimal pricing strategy for
Apps price slightly lower than eBook complementary products
4 possible channels: Dedicated sales force
• Direct (Libreriarizzoli.it)
Distribution • Retailer Online / Offline
• Pure player online
• Devices developer
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15. Re-design the business model
• Balance the revenue mix according to the new scenario, with higher focus on
digital business
• More flexible cost structure
• Assure business sustainability through efficiency enhancement
• Review Group’s organizational structure and alignment to strategic objectives
• Provide the Group of the necessary resources to face the new challanges
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Milan, 17 December 2010

16. Focused investments and growth ambitions
• Multimedia and multiplatform development of the Italian and Spanish newspapers
Power Brands
• Focus on Vertical Magazines in Italy and abroad
• Consolidate the competitive position in the Italian and French books’ markets, also
through acquisitions and innovations in the digital segment
• Investment and strengthen the technological platforms (i.e. TV/Video on line, CRM, ...)
• Portfolio management with potential disposals and, as a result, a reduction of capital
invested in non core assets
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Milan, 17 December 2010

17. Agenda
• Executive Summary
• Strategic Guidelines
• Revenues / EBITDA targets 2010-2013
• Organization and HR
• Economic and Financial Management’s key elements
• Details by Business Unit
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Milan, 17 December 2010

18. Strategic Plan 2011-2013 - Main Assumptions
Cagr % Cagr %
2010-2013 2010-2013
MKT RCS MKT RCS
Newpapers 0.0% 1,9% - - - 6.0%
Add ons
Magazines - 4.0% 1,8% - - - 12.0%
Online 15,3% 30,1%
Advertising - 0,8% 2,9%
Newspapers 3,0% 3,4% Books
- 1,3% 1,2%
Online 18,9% 23%
FTA TV 4,9% 53%
Labour Cost - 3.7% (3)
Newspapers - 3,2% - 3,9% (1) Newspaper 7,3% 7,3%
Circulation Paper Cost
Newspapers n.a. - 5,4% Magazine 3,1% 3.1%
Digital Circulation Newspapers - 120 (2)
as of 2013
(copies /000) Newspapers - 103 (2)
(1) Corriere della Sera - 3.3% and Gazzetta dello Sport - 4.6%, includes the effects of cannibalization from digital editions
(2) Tablets Forecast at 2013 amounted to 3.8 million in Italy and to 3.2 million in Spain, with a market share for RCS of 3.2% in both countries
(3) Base salary
Source: Internal estimate on Nielsen, Datamonitor, i2p, CPC, Zenith and PWC
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Milan, 17 December 2010

19. Economic targets – Revenues 1
m€ = CAGR10-13 • ≈ 30 % Digital Advertising (Display, Video,
Ipad/Tablet)
2,8% • ≈ 30% Development of the DTT in Spain
2,453 • ≈ 25% Digital circulation (Ipad/tablet, mobile),
2,259 e-book and e-commerce
Digital and 20.8%
304 536 • ≈ 15% Other
Multimedia
CAGR 10-13 except of UK Partworks = +0.7%
1,955 1,917 • Circulation decrease in Italy and Spain partially
offset by price increases
Traditional - 0.7% • Advertising increase on traditional business in
Business both Italy and Spain (CAGR 10-13 around 2%)
• Disposal of UK partworks and decrease in add
ons offset by Fiction/NonFiction and
Educational books increase
2010 IIF 2013E
• Exploitation of RCS Sport and other projects
(Abroad)
2013 results improve due to the digital & multimedia business
growth and to the consolidation of the traditional business
19 1. Includes GEF in 2010
Milan, 17 December 2010

20. 1
Economic targets - EBITDA
Contribution of the following drivers:
• Traditional advertising increase
m€ = CAGR10-13
• Circulation decrease
• Cover prices increase
• Cost of paper increase ≈ 0%
14.5% • Increase of books and education
• Decrease in add ons and disposal GEF
296 • Labour cost increase
• Savings and efficiencies ≈ 33%
197
• Contribution to Power Brands from
digital/multimedia expansion ≈ 40%
(adv baseline, Ipad, freemium, web TV)
• Development DTT in Spain ≈ 17%
2010 IIF 2013E
• Other ≈ 10%
EBITDA % 8,7% 12,0%
2013 results improve due to digital & multimedia business growth,
to further efficiencies and to the consolidation of the traditional business
20 1. Includes GE Fabbri in 2010, EBITDA ex non recurring items
Milan, 17 December 2010

21. Italy vs other countries
1 1
Revenues1, Revenues1,
% on total 2010 IIF (2.259m€) % on total 2013E (2.453m€)
RoW RoW
41
39
61 59
Italy Italy
1 1
EBITDA1, EBITDA1,
% on total 2010 IIF (197m€) % on total 2013E (296m€)
RoW RoW
47 53
53 Italy 47
Italy
1. Includes GE Fabbri in 2010, EBITDA ex non recurring items
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Milan, 17 December 2010

22. Agenda
• Executive Summary
• Strategic Guidelines
• Revenues / EBITDA targets 2010-2013
• Organization and HR
• Economic and Financial Management’s key elements
• Details by Business Unit
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Milan, 17 December 2010

23. Strategic Plan 2011-13 - Organizational priorities
1
• Align Group organization to the strategic objectives
2
• Continue the efficiency enhancement
3
• Provide the Group of the necessary competencies/resources to face the new
challenges of the Strategic Plan (both through internal development and by
bringing in skills from outside)
•
4 Fostering a business environment oriented towards creativity,
innovation/experimentation and organizational flexibility, in a trustful environment
between employees and the company
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Milan, 17 December 2010

24. Agenda
• Executive Summary
• Strategic Guidelines
• Revenues / EBITDA targets 2010-2013
• Organization and HR
• Economic and Financial Management’s key elements
• Details by Business Unit
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Milan, 17 December 2010

25. Economic targets
CAGR
2007PF 2008 2009 2010 IIF 2 2013E
m€ '10 – '13
Revenues 2 785 2 660 2 206 2 259 2 453 2.8%
EBITDA1 373 271 133 197 296 14.5%
% 13.4% 10.2% 6,0% 8.7% 12,0%
EBIT n.a. 130 - 97 80 2013 n.s.
% 4,9% 3,5% 8,2%
1. Ex non recurring items
2. Includes GEF and impairment test as of 30 June 2010
3. Excludes Impairment test
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Milan, 17 December 2010

26. Cash Flow Management
Free Cash Flow • Cumulated Free Cash Flow (before CAPEX) of about €530 million
Investments • Cumulated technical investments of approximately €160 million
Portfolio • No disposals have been included in the NFP, although the Group
& non core assets is strongly considering the valorization of not strategic assets
Net Financial
• Ratio NFP/EBITDA 2013E = 2.3x
Position
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Milan, 17 December 2010

27. Cumulated CAPEX, net capital employed and ROI
Investimenti cumulati 2011 – 2013 Net capital employed
Cumulated CAPEX 2011 – 2013
100 % = 160 m€
m€ 2.364
2.141
Other 2.067
1.855
21
49 2008 2009 2010 IIF 2013E
10 ICT
Technical
ROI
20
%
10,7%
5,5%
3,8%
TV Rights
- 4,3%
2008 2009 2010 IIF 2013E
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28. Net Financial Position
As of 31/12
m€
- 677
- 966
- 979
- 1.057
- 1.147
2007PF 2008 2009 2010IIF 2013E
PFN/ 4,2 7,9 5,0 2,3
2.6
EBITDA ex NR
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Milan, 17 December 2010

29. Agenda
• Executive Summary
• Strategic Guidelines
• Revenues / EBITDA targets 2010-2013
• Organization and HR
• Economic and Financial Management’s key elements
• Details by Business Unit
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Milan, 17 December 2010

30. Newspapers Italy
2010 IIF 2013E
• • Increase multimedia and multiplatform revenues of the
Increase multimedia and multiplatform revenues of the EBITDA % 14.7% 16.1%
Gazzetta and Corriere Power Brands:
Gazzetta and Corriere Power Brands:
––Digital pay model development
Digital pay model development
––On line video expansion
On line video expansion
––Corriere editorial review (graphic, mixed themes,
Corriere editorial review (graphic, mixed themes,
young generation attraction, etc…)
young generation attraction, etc…)
––Supplements editorial review and valorization
Supplements editorial review and valorization
––Advertising collection development (brand exploitation,
Advertising collection development (brand exploitation,
new formats, special projects)
new formats, special projects)
––Non-publishing revenues increase (Gazzetta on line
Non-publishing revenues increase (Gazzetta on line
Gaming, e-commerce)
Gaming, e-commerce)
––Restore margins in the classified business
Restore margins in the classified business
––Redefinition of the organization (editorial and
Redefinition of the organization (editorial and
advertising sales force) to make ititcoherent with the
advertising sales force) to make coherent with the
multimediality
multimediality
––CRM
CRM
• • Strengthen the local editions and the online local editions
Strengthen the local editions and the online local editions
system
system
• • Focus on safeguarding the add-ons profitability
Focus on safeguarding the add-ons profitability
• • Free press at break-even
Free press at break-even
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31. Unidad Editorial
2010 IIF 2013E
• • Increase of multimedia and multiplatform publishing
Increase of multimedia and multiplatform publishing
revenues of the Power Brands:
revenues of the Power Brands:
––Strengthen the positioning in the press business EBITDA % 8.3% 18.0%
Strengthen the positioning in the press business
––Cover prices increase
Cover prices increase
––Digital pay model for Orbyt Power Brands
Digital pay model for Orbyt Power Brands
––Online video expansion
Online video expansion
––CRM
CRM
––DTT expansion (Veo7, Marca TV)
DTT expansion (Veo7, Marca TV)
• • Advertising collection development
Advertising collection development
–– Increasein TV and Internet advertising
Increase in TV and Internet advertising
––Brand exploitation with multiplatform offer
Brand exploitation with multiplatform offer
––New formats and special projects
New formats and special projects
––Direct marketing
Direct marketing
• • Non-publishing revenues increase (e-commerce
Non-publishing revenues increase (e-commerce
and social network)
and social network)
• • Redefinition of the new organization (editorial and
Redefinition of the new organization (editorial and
advertising sales force) to make ititcoherent with the
advertising sales force) to make coherent with the
multimedia approach
multimedia approach
• • Focus on safeguarding the add-ons profitability
Focus on safeguarding the add-ons profitability
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Milan, 17 December 2010

32. Magazines
• • Focus on Women/Fashion multimedia system: : 2010 IIF 2013E
Focus on Women/Fashion multimedia system
–– Protection of traditional business and Amica restyling
Protection of traditional business and Amica restyling
–– Strengthen on web and TV EBITDA % 1.9% 6.3%
Strengthen on web and TV
–– Digital contents pay model for tablets
Digital contents pay model for tablets
• • Interior Design multimedia system development: :
Interior Design multimedia system development
–– BravaCasa restyling
BravaCasa restyling
–– Advertising offer format (integrated projects, direct
Advertising offer format (integrated projects, direct
marketing)
marketing)
–– Digital development (e-commerce, digital contents pay
Digital development (e-commerce, digital contents pay
model for tablets)
model for tablets)
• • Travel multimedia system development: :
Travel multimedia system development
–– Brand Dove empowerment (e-commerce,
Brand Dove empowerment (e-commerce,
contents/services for tablets, Dove TV)
contents/services for tablets, Dove TV)
• • Infancy multimedia system development: :
Infancy multimedia system development
–– Increase digital revenues (tablets, e-commerce)
Increase digital revenues (tablets, e-commerce)
–– International expansion (China, Brazil)
International expansion (China, Brazil)
• • Family segment : :
Family segment
–– Creation of Oggi system
Creation of Oggi system
• • Further cost-efficiency measures
Further cost-efficiency measures
• • Corporate structure simplification
Corporate structure simplification
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33. Books
2010 IIF 2013E
• • Fiction-non fiction Italy
Fiction-non fiction Italy
–– Portfolio optimization with strengthening of the
Portfolio optimization with strengthening of the
competitive position in the most attractive market EBITDA% 8.9% 9.7%
competitive position in the most attractive market
segments
segments
–– Commercial and promotional re-organization
Commercial and promotional re-organization
(promotional and advertising policies, commercial
(promotional and advertising policies, commercial
net, efficiency structure)
net, efficiency structure)
–– Launch special projects and e-books
Launch special projects and e-books
• • Fiction-non fiction France
Fiction-non fiction France
–– Strengthening in the most attractive segments
Strengthening in the most attractive segments
and development of new editorial areas (e-books)
and development of new editorial areas (e-books)
–– Distribution activities development
Distribution activities development
• • Education
Education
–– Strengthen market positioning
Strengthen market positioning
–– Commercial and distribution efficiency
Commercial and distribution efficiency
enhancement
enhancement
–– Multimedia and digital product range development
Multimedia and digital product range development
with complementary contents and services for
with complementary contents and services for
didactic activities and digital production
didactic activities and digital production
• • Illustrated
Illustrated
–– Launch of new editorial segments
Launch of new editorial segments
–– International network development
International network development
• • Partworks
Partworks
–– Maintain the current offer in Italy, with focus on
Maintain the current offer in Italy, with focus on
restoring profitability
restoring profitability
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34. Italian Advertising House
• • Redefinition of the organizational model to increase
Redefinition of the organizational model to increase
market presence and penetration
market presence and penetration
–– Marketing and commercial organization by clients (top,
Marketing and commercial organization by clients (top,
medium, new business)
medium, new business)
–– Sales forces dedicated to fashion and design segments
Sales forces dedicated to fashion and design segments
–– Creation of aaSport system (dedicated sales force and
Creation of Sport system (dedicated sales force and
marketing)
marketing)
–– Online specialized sales-men integrated within each
Online specialized sales-men integrated within each
client/system team
client/system team
–– Strengthening of the integrated projects area
Strengthening of the integrated projects area
• • Creation of aanew offer model
Creation of new offer model
–– Integrated projects (tailor made/catalogue)
Integrated projects (tailor made/catalogue)
–– Enhancement of Power Brands
Enhancement of Power Brands
–– New multimedia formats (video on line, iPad, etc.)
New multimedia formats (video on line, iPad, etc.)
–– Affiliation with external websites
Affiliation with external websites
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35. Disclaimer
This presentation contains management preliminary estimates and forward-looking statements,
including information related to RCS MediaGroup projected financial performance and the expected
development of the publishing industry, in particular in the newspaper, magazine, book and new
media segments. These statements are based on estimates and assumptions made by management
of the company and are believed to be reasonable, as of this date, though by their nature future
estimates are uncertain and subject to variations due to possible changes in the market. Actual
results or experience could differ materially from the information contained herein.
This communication does not constitute an offer or solicitation for the sale, purchase or acquisition of
securities of any of the companies mentioned in any jurisdiction and is directed to professionals of
the financial community.
For further information, please contact our Investor Relations Department
Federica De Medici Nicola Banco
+39 02 2584 5508 +39 02 2584 4787
federica.demedici@rcs.it nicola.banco@guest.rcs.it
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Milan, 17 December 2010