M E D I A S E T G R O U P

M E D I A S E T G R O U P

2000: A Memorable Year Leadership in terms of audience Leadership in terms of advertising revenues Careful control of costs Development of multimedia MEDIASET GROUP

2000: A Memorable Year Free-to-air generalist television will continue to play a central role in the media system Il Grande Fratello (Big Brother): the ante-chamber of convergence Television - a bridge connecting different media MEDIASET GROUP

2000: A Memorable Year: Results Consolidated net revenues: 2,363.6 m Euro (+15.4% vs 1999) Operating profit: 691.5 m Euro (+23.4% vs 1999) EBIT Margin up from 27.3% to 30.1% Net profit: 423.5 m Euro (+ 24.9% vs 1999) MEDIASET GROUP

New Media The Internet Cost-conscious investment strategy (light structure) Business approach based on interaction with and within television (TG5 & TG.COM) Thematic channels Low cost of conception and packaging MEDIASET GROUP

Diversification (Television is the hub) The core business will remain at the heart of the coming transformations Viewers will become less passive more interactive Enhanced TV: agreements and alliances with telecom companies to build an integrated platform MEDIASET GROUP

Regulatory Scenario March 2001: Law approved for the shift to digital terrestrial This means: A precise time frame - 2006 - for the change-over Testing to be carried out by incumbent licence-holders The possibility of buying frequencies A reserve of 60% of additional broadcasting capacity allocated to the licence-holders that launch testing MEDIASET GROUP

Conclusions Core Business: Dependability and continued value creation TV: the key element in the development of digital technology and interactivity Content provider International partnership Leadership in digital TV MEDIASET GROUP

B R O A D C A S T I N G

Summary 2000 Results Programming Strategy Costs Control: Efficiency and Performance Improvement 2001 Objectives BROADCASTING

Mediaset Total Viewers (%) 2000: Best Result of the Last 6 Years Daily audience share (24 hours) 42.8 42.5 42.6 43.4 41.7 41.7 95 96 97 98 '99 00 Soccer European Championship + Olympics Soccer World Championship Soccer European Championship +Olympics BROADCASTING

Canale 5 Total Viewers (%) 2000: Best Result in the Auditel Age Daily audience share (24 hours) 18.4 18.4 18.4 19.6 20.5 20.3 21.2 21.4 21.9 20.8 21.2 22.5 16.3 16.4 87 88 89 '90 91 92 93 94 95 96 97 98 '99 00 BROADCASTING

Editorial Strategy Three Networks, One Television Leadership/Co-leadership in Individuals Target Leadership in Commercial Target Leadership in Young Target (Children, 15-24yrs, 25-34yrs) Focus on RAI Targets BROADCASTING

Editorial Strategy Three Networks, One Television Wider offer for viewers Better service for ad investors Effectiveness and Efficiency Co-ordination in programming to optimize costs BROADCASTING

Channel Positioning Three Networks, One Television ITALIA 1 RAI 2 TMC Female e Mal CANALE 5 RAI 3 TOT. AUDIENCE RETE 4 RAI 1 Young Adults BROADCASTING

Channel Positioning Three Networks, One Television 2000 Daily audience share % COMMERCIAL TG. (15-64 yrs) Canale 5 Rai 1 Rai 2 Italia 1 Rai 3 Rete 4 Tmc 24.5 21.3 14.8 11.8 9.1 8.7 1.9 15-24 YEARS 25-34 YEARS >65 YEARS Canale 5 Italia 1 Rai 2 Rai 1 Rai 3 Rete 4 Tmc 27.5 19.2 15.7 13.0 6.5 6.2 1.7 Canale 5 Rai 1 Italia 1 Rai 2 Rai 3 Rete 4 Tmc 27.2 18.1 14.8 14.4 7.7 7.5 2.0 Rai 1 Canale 5 Rai 2 Rete 4 Rai 3 Italia 1 Tmc 29.9 18.1 14.3 13.3 11.3 5.5 1.9 BROADCASTING

Programming Strategy Maximum Efficiency & Performance Improvement Increase in in-house production hours (Fiction & Entertainment) Reduction in high-cost and low-profitability products (Champions League) Revenues from the sale of programming rights BROADCASTING

Cost of Programming & Commercial Productivity: Examples AVERAGE AUDIENCE PER MINUTE PRODUCT COST INDEX GRP INDEX Champions League match 24/5/00 Real Madrid - Valencia 5,503 100 100 Film 20/3/00 Independence Day 5,548 60 114 Fiction 27/4/00 Valeria Medico Legale 5,519 40 142 Entertainment 13/2/00 La sai l ultima? 5,548 16 *127 *excluding TV promotions BROADCASTING

Cost of Programming Examples: Canale 5 Programming in Autumn 2000 SUN MON TUE WED THU FRI SAT Forecast In-house Film Champ. Champ. Fiction In-house In-house Broadcast Fiction Big Broth Total saving Total GRP -16 million Euro +72% BROADCASTING

Cost of Programming & Mediaset Group Net Revenues +8.8% +10.4% +8.6% +5.7% +11.5% +5.2% Net Revenues Cost of Programming 97 98 '99 00 BROADCASTING

Cost of Programming 2000 vs. 1999, 1999 vs. 1998, 1998 vs. 1997 98 vs 97 99 vs 98 00 vs. 99 Total costs before sale of rights +10.4% +8.2% +7.6% Revenues from sale of rights (m Euro) 20.1 40.8 Total costs after sale of rights +10.4% +5.7% +5.2% BROADCASTING

2001 Objectives Control of Programming Costs Management Strategy Development = Brand Extension BROADCASTING

Control of Programming Costs % costs increase lower than % adv. revenues increase Tactical Cancelling or postponing some productions: Prime time specials Day time specials Strategic Long series prod. vs. Rights acquisitions Joint-venture production Development of in-house formats Revenues from the sale of programming rights BROADCASTING

Management Strategy Internal Growth Motivation Team working Cost control Innovation Consistency with our strategy: Three Channels, One Television BROADCASTING

Development= Brand Extension Free TV is fundamental to launch/sustain new products Mediaset (43% share) either owns or can build strong brands Brand extension activities have 3 main objectives: - to create incremental revenues - to optimize internal resources - to reinforce Generalist TV BROADCASTING

Brand Extension Example 1.Free Programming 6. Press (weeklies/monthlies) 5. Events Brand Extension 2.Thematic Digital Channel 3. Internet 4. Merchandising BROADCASTING

2001: January - March audience share 24 hours vs 2000 Prime Time vs 2000 MEDIASET 44.7 +2.2 45.4 +5.1 RAI 46.8-1.6 46.6-4.0 CANALE 24.9 +2.8 26.4 +4.9 RAI 1 25.1 +1.3 24.8-1.6 Source: Auditel (at 10/3/01) BROADCASTING

A D V E R T I S I N G

Summary 2000 Achievements 2001 Initial Results Future Developments ADVERTISING

Summary 2000 Achievements 2001 Initial Results Future Developments ADVERTISING

Publitalia: TV Advertising Revenues in 2000 (million Euro) + 268 2,467 2,199 1999 2000 ADVERTISING

Excellent Results for the 3rd Consecutive Year (million Euro) + 657 m Euro 2000 268 1999 198 1998 191 ADVERTISING

Tv Market Growth versus previous year TOTAL MARKET PUBLITALIA SIPRA TMC +12.4% +12.6% +12.0% +10.5% Source: Nielsen ADVERTISING

Publitalia s Competitive Capacity FIRST 9 MONTHS +16.0% +15.4% LAST 3 MONTHS +6.0% +3.8% TV MARKET PUBLITALIA TV MARKET PUBLITALIA Source: Nielsen ADVERTISING

A Fundamental Support: Our Audience Share October - December: Mediaset leader in 24 hours MEDIASET RAI % vs 2000 % vs 2000 24 hours 45.8 +2.3 45.7-1.9 Prime time 45.9 +2.9 46.5-2.0 Day time 45.8 +2.2 45.4-1.8 Source: Auditel; Target Individuals ADVERTISING

Tv Consumption (minutes per day) + 2.7% 207 212 214 224 221 214 212 230 201 191 191 181 178 179 87 88 89 90 91 92 93 94 95 96 97 98 99 00 Source: Auditel - Target individuals ADVERTISING

Tv Viewers (daily million) + 4.5% 46.073 44.102 1999 2000 ADVERTISING

Publitalia: Advertising Demand Trend ACTIVE CLIENTS NEW CLIENTS IN 00 1999 1,044 New Clients 280 2000 1,045 Revenue 180 m Euro Average Inv. 0.6 m Euro ADVERTISING

Mediaset: Advertising Investments by Sector (million Euro) 2000 %vs 99 GROCERY NEW SECTORS AUTOMOTIVE OTHERS 1,053 467 181 766 +5.2% +58.8% +8.9% +3.8% ADVERTISING

Mediaset: Focus on New Sectors (million Euro) 2000 % vs 99 TELECOMS 348 +70% FINANCE/INSURANCE 68 +52% ADVERTISING

Mediaset: Advertising Investments by Sector GROCERY OTHER SECTORS GROCERY OTHER SECTORS 33.6 45.5 31.1 42.7 AUTOMOTIVE 7.6 7.3 18.9 13.4 AUTOMOTIVE NEW SECTORS NEW SECTORS 1999 2000 ADVERTISING

Mediaset: New Media Revenues (in million Euro) 16.0 5.5 11.8 +10.5 m Euro + 191 % INTERNET MEDIAVIDEO 2.3 3.2 4.2 1999 2000 ADVERTISING

Mediaset: 2000-year Growth (in million Euro) OTHERS 283 15 1 10 MEDIAVIDEO INTERNET 4 ADVERTISING BOARD TV 268 ADVERTISING

Summary 2000 Achievements 2001 Initial Results Future Developments ADVERTISING

Telecinco: Audience Share Trend 2000 24.9 20.3 TVE 24.5 19.7 ANTENA3 22.8 23.2 21.5 23.0 1999 2000 1999 2000 % Total Audience % Commercial Target TELE5 21.0 23.5 25.0 22.3 Commercial Target: 13-55 years, high, middle and mid. low income for towns > 10.000 pop. 1999 2000 ADVERTISING

Spanish Tv Advertising trend 2000 vs 1999 in million Euro 2,041 2,227 +9.1% 476 498 +4.5% 568 620 645 558 +9.1% +15.6% 99 00 99 00 99 00 99 00 TOTAL NATIONAL TV TVE ANT3 TELE5 ADVERTISING

Telecinco Financial Results Consolidated pro-forma figures (in million euro) 1999 2000 Net consolidated Revenues 512.7 610.7 +19.1% Operating costs (350.5) (368.6) +5.2% EBIT 162.1 242.1 +49.3% Pre-Tax Profit 149.5 228.1 +52.6% Net Profit 110.5 154.7 +40.0% ADVERTISING

Telecinco: One of the Most Profitable Free Tv in Europe (in million euro) 39.6% Ebit Margin 27.0% 31.6% 111.2 162.3 242.1 1998 1999 2000 ADVERTISING

Summary 2000 Achievements 2001 Initial Results Future Developments ADVERTISING

Market Reference Framework Increase in Consumption Propensity «One should spend everything, without caring about saving» (% very+quite favourable) «One should buy only what is really needed» (% very much favourable) 18 16 14 12 1991 1993 1994 1996 1997 1999 2000 30 28 26 24 22 20 18 16 14 1989 1991 1993 1994 1996 1997 1999 2000 Source:GPF & A. ADVERTISING

Market Reference Framework Advertising: an increasingly fundamental asset «I have recently hesitated before letting myself be influenced by advertising» 48 46 44 42 40 38 36 (% favourable) «Advertising can help in making a product selection» 66 64 62 60 58 (% very favourable) 34 1997 1999 2000 56 1996 1997 1999 2000 Source:GPF & A. ADVERTISING

Publitalia Bookings - Jan./ Feb. 2001 (million Euro) 449 423 +26 m Euro + 6.1 % 2000 2001 ADVERTISING

Publitalia: First-2-months Positive Aspects ACTIVE CLIENTS BANK/INSURANCE SECTOR AUTOMOTIVE MARKET GROCERY SECTOR FOOD SECTOR 481 + 27 +189% +15.7% +7.8% +15.5% ADVERTISING

Mediaset: an Important Contribution from Audience Share 2001: Mediaset Leader in Prime Time PRIME TIME 24 HOURS JAN. FEB. JAN. FEB. MEDIASET 46.1 47.3 45.2 45.9 RAI 45.5 44.8 46.1 45.8 Source: Auditel; Target Individuals ADVERTISING

Mediaset: an Important Contribution from Audience Share 2001: Canale 5 Undisputed Leadership PRIME TIME 24 HOURS JAN. FEB. JAN. FEB. CANALE 5 26.4 27.9 25.1 25.8 RAI 1 23.5 22.6 24.1 24.1 Source: Auditel; Target Individuals ADVERTISING

Canale 5 s Brand Perception Canale 5 is the network: 1991% 2000 % 00 vs 91% I would be least willing to give up 20.9 37.0 +16.1 Most in tune with audience needs 16.9 29.1 +12.2 With the newest, up-to-date programmes 29.4 41.7 +12.3 I watch most often 25.8 42.8 +17.0 That will be most successful in the future 26.4 33.2 +6.8 Source:GPF & A. ADVERTISING

Mediaset: New Media Revenues (Jan.-Feb. 2001) (million Euro) INTERNET 1.5 1.3 + 0.2 m Euro 0.8 + 15.4% 0.7 MEDIAVIDEO 0.6 0.7 2000 2001 ADVERTISING

Summary 2000 Achievements 2001 Initial Results Future Developments ADVERTISING

The New Scenarios After the Start of Digital Terrestrial Broadcasting By 2010 Tv will be digital New national and international players DTT will entail a Tv evolution Mediaset will remain a major player ADVERTISING

Our Mission : to Become Leader in Digital TV To strengthen our leadership in the core business: Italy and Spain To play a leading role in the new opportunities offered by digital THEMATIC CHANNELS INTERACTIVITY ADVERTISING

Our Mission : to Become Leader in Digital TV CORE BUSINESS To maintain the acquired levels of profitability (cost control) and to continue to innovate both in content and advertising. To exploit the potential of our brands (merchandising) DIGITAL OPPORTUNITIES To develop channels for specific targets To exploit the possibilities offered by interactivity To launch new services ADVERTISING

F I N A N C I A L 62

Mediaset Financial Overview Consolidated Full Year Results (m Euro) 1999 2000 Net consolidated revenues 2,048.7 Operating costs (875.7) EBITDA 1,173.1 Amortization and depreciation (612.9) EBIT 560.2 Pre-tax profit 586.1 Net profit 339.2 2,363.6 (1,006.4) 1,357.2 (665.7) 691.4 647.9 423.4 +15.4% +14.9% +15.7% +8.6% +23.4% +10.5% +24.9% FINANCIAL

Mediaset Financial Overview Italian Business (m Euro) 1999 2000 Total Net Revenues 2,048.7 2,284.5 +11.5% Operating costs (875.7) (939.0) +7.2% EBITDA 1,173.1 1,345.5 +14.7% Amortization & depreciation (612.9) (657.5) +7.3% EBIT 560.2 688.0 +22.8% FINANCIAL

Mediaset Financial Overview Italian Activities Operating Profit (m Euro) 26.1% 27.3% 30.1% Ebit Margin 492.8 560.2 688.0 31 dic.98 31 dic.99 31 dic.00 FINANCIAL

Mediaset Financial Overview Italian Business Revenues (m Euro) 1999 2000 Advertising (third parties) 2,165.0 2,422.4 +11.9% TV operations 117.1 132.5 +13.0% Multimedia 10.6 29.0 n.a. Non - TV operations 73.7 55.2 (25.1%) Commissions (317.7) (354.7) +11.6% TOTAL Net Revenues 2,048.7 2,284.5 +11.5% FINANCIAL

Mediaset Financial Overview Italian Business Operating Costs (m Euro) Labour cost trend 269 + 3.9% 279,5 + 3.5% 289,3-0.4% 288,1 1997 1998 1999 2000 FINANCIAL

Mediaset Financial Overview Italian Business Operating Costs (m Euro) 1999 2000 Commercial costs (82.0) (87.9) +7.3% In-house production (336.1) (383.9) +14.2% Transmission costs (28.8) (35.2) +22.2% Overheads (72.3) (85.7) +18.5% Multimedia activities (6.9) (18.6) n.a. Other non Tv costs (60.4) (39.4) -34.7% TOTAL Italian Costs (586.4) (650.8) +11.0% FINANCIAL

Mediaset Financial Overview Italian Business (m Euro) 1999 2000 In-house production costs (336.1) (383.9) +14.2% In-house production costs (297.6) (313.5) +5.3% Tv concession fee (0.9) (16.2) n.a. SIAE costs (37.6) (42.2) +12.2% Soap costs* - (12.1) n.a. * In 99 Soap Opera costs were in TV rights amortisation FINANCIAL

Mediaset Financial Overview Italian Business (m Euro) 1999 2000 Transmission costs (28.8) (35.2) +22.2% Capitalised Costs in 1999 3.1 --- n.a. Lay off provision --- (3.1) n.a. Total running comparable costs (31.9) (32.1) +0.6% FINANCIAL

Mediaset Financial Overview Italian Business (m Euro) 1999 2000 Overheads (72.3) (85.7) +18.5% Witholding tax --- (7.6) n.a. Running costs (72.3) (78.1) +8.0% FINANCIAL

Mediaset Financial Overview Italian Business Amortisation and Depreciation (m Euro) DEPRECIATION AND OTHER AMORTISATION SPORTS 612.9 92.0 92.8-4.5% + 47.8% 657.5 87.8 137.2 +7,3% TV RIGHTS AMORTISATION FICTION 428.1 + 1.0% 432.5 1999 2000 FINANCIAL

Mediaset Financial Overview Financial income & Associated Companies (m Euro) 1999 2000 Net financial income/charges Total Associated companies TELECINCO (40% stake) ALBACOM (19.5% stake) PKS Group (24.5% stake) BLU (9% stake) & others 18.6 2.4 21.8 (19.3) --- (0.1) (52.4) 10.0 41.7 (25.8) (5.2) (0.7) FINANCIAL

Mediaset Financial Overview Net Profit (m Euro) 17,9% Net profit Margin 15,1% 284.5 16,6% 339.2 423.4 1998 1999 2000 Net Profit:2000 + 24.9% vs 1999 FINANCIAL

Financial Overview Cash flow statements (excl. Epsilon) (m Euro) 1998 1999 2000 Free Cash flow 122.6 Cash flow from operations 846.7 Investments (563.8) Others movements (160.3) Dividends (139.5) Equity movements 2.0 Total Net cash flow (14.9) (12.4) 950.4 (1,384.9) 422.1 (167.1) 2.0 (177.4) 159.0 1,142.4 (799.3) (184.1) (216.2) 2.7 (54.5) FINANCIAL

Financial Overview Investments (m Euro) 1999 = 1,384.9 2000 = 799.3 394.3 57.8 116.7 77.4 932.8 605.2 Associates TV Rights Technical & immaterial FINANCIAL

Financial Overview Earnings per share (Lit.) TO BE APPROVED BY AGM 9 th April 2001 1997 1998 1999 2000 Number of shares (million) 1,176.1 1,178.5 1,180.3 1,181.2 Earnings per share 393.2 467.4 556.4 694.1 Net dividend per share 230 275 355 465 Pay out ratio 58.5% 58.8% 63.8% 67.0% FINANCIAL