GEDI Gruppo Editoriale S p A : Under the terms of CONSOB Resolution 11971/99 and subsequent amendments and additions

PRESS RELEASE

Under the terms of CONSOB Resolution 11971/99 and subsequent amendments and additions

GEDI GRUPPO EDITORIALE S.P.A.

ECONOMIC AND FINANCIAL RESULTS AT 31 March 2020

TURNOVER € 129.8 MILLION

EBITDA €-0,3 MILLION

NET PROFIT €-52.9 MILLION

(write-downs on publications of €42.9 million)

NET FINANCIAL DEBT € 47.7 MILLION

(pre-IFRS 16)

Rome, 05 May 2020- Today, under the chairmanship of John Elkann, the Board of Directors of GEDI Gruppo Editoriale S.p.A. met and approved the consolidated results at 31 March 2020 as presented by Chief Executive Officer Maurizio Scanavino.

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

ECONOMIC AND FINANCIAL RESULTS FOR THE GEDI GROUP AT 31 MARCH 2020

Below are the main economic and financial indicators at 31 March 2020.

Consolidated results (€ million)	Jan-Mar	Jan-Mar
2019	2020
Revenues, of which:	145.6	129.8
•	circulation	67.1	63.8
•	advertising	67.5	56.3
•	add-ons and others	10.9	9.8
Gross operating profit	8.4	(0.3)
Adjusted operating profit	1.5	(8.1)
Operating profit	0.5	(67.0)
Profit (loss) before taxes	(2.6)	(68.0)
Net profit (loss) from continuing operations	2.0	(52.9)
Profit (loss) from discontinued operations and	0.0	-
assets held for sale(1)
Adjusted net profit	2.8	(9.9)
Net profit	2.0	(52.9)
(€ million)	31 December	31 March
		2019	2020
Net financial debt pre-IFRS 16	(44.1)	(47.7)
Payables for leasing and rights of use - IFRS 16	(55.3)	(52.5)
Net financial position post-IFRS 16	(99.4)	(100.2)
Shareholders'Equity incl.non-controlling interests	393.9	341.0
•	Group Shareholders' Equity	393.4	340.6
•	Non-controlling interests	0.5	0.5
Employees	2,221	2,185

1. The "Profit (loss) from discontinued operations and assets held for sale" at 31 March 2019 includes the result for the period of the subsidiary Persidera, subsequently sold in 2019.

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

INTRODUCTION

Results in the initial months of 2020 have been significantly affected by the spread of the COVID-19 virus and consequent restrictions for its containment established by national and local authorities.

From a macroeconomic perspective, the leading agencies and banks have lowered their GDP growth estimates, whereas the Company has seen a direct contraction in advertising revenue, with the cancellation of certain national and local campaigns that had already been booked for February, March and April (some of these have been rescheduled for a later date, whereas others cannot be recovered), as well as a decrease in daily bookings.

Meanwhile, all Group brands have further consolidated their central position and authority in providing accurate information to readers, recording particularly significant increases in digital traffic.

In this context, the Group prioritised actions to guarantee the health and safety of its workforce and swiftly adopted a series of measures for further rationalisation and reduction of costs, aimed at containing the economic and financial effects deriving from the sudden drop in advertising revenue, whilst continuing investment according to the strategic guidelines identified.

MARKET PERFORMANCE

In the first two months of 2020, advertising investments grew slightly (+0.8%) compared to the corresponding period in the previous year (Nielsen Media Research figures).

However, in this health-emergency scenario, the trend of the first two months of the year, whilst traditionally indicative of a trend that will be consolidated for the first quarter, already represents a situation that the market has moved beyond.

Considering individual platforms, in the two-month period, television saw growth of 2.0%, as did the Internet with +4.8%, excluding Search and Social, and above all radio, that reached +13.9%. Printed media again recorded a drop, this time of -8.6%, with newspapers reporting -6.7%(-9.9% revenue for national papers and -4.9% for local papers) and magazines -12.2%.

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

According to ADS (Accertamento Diffusione Stampa) data, in the first two months of 2020, newspaper subscriptions and sales at newsstands fell by 6.8% (-5.0% for national newspapers and - 9.0% for local newspapers). Including digital copies, overall circulation dropped by around -6.5%.

GEDI GROUP OPERATING PERFORMANCE FOR THE 1ST QUARTER OF 2020

Consolidated revenues, totalling € 129.8m, fell by 10.8% compared to the first quarter of 2019. Revenue from digital activitiesrepresented a total of 13.5% of consolidated revenues (17.4% on the Repubblica brand).

Circulation revenues, amounting to € 63.8m, decreased by 4.9% when compared with the previous financial year, in a market which, as indicated above, reports a decrease of 6.8% in the sales of daily newspapers at newsstands and via subscription.

The effects of COVID-19 and the restrictions introduced at a regional and national level have also affected sales at newsstands, with a significantly greater drop in March compared to that for the first two months of the year.

Meanwhile, sales of digital subscriptions confirmed their positive trend, supported both by continuation of actions to maximise consumer-base profitability and increased new activations following growing attention of readers to news regarding the spread of COVID-19. In this context, a promotional policy was introduced for digital-only products (Rep:, Topnews, Stai con Noi) and on annual dual-copy subscriptions. All of these actions increased the customer base, which exceeded 216,000 subscriptions across all Group publications.

Advertising revenuewas down by 16.7% compared to the first quarter of 2019. In January-February, revenue from the Group's different platforms was in line with the corresponding period of the previous year (-0.3%), reflecting the trend in respective reference markets. The subsequent health emergency and lockdown measures launched during March led to a drastic reduction in advertising revenue, which dropped 37.4%.

With reference to the Group's different platforms, in the quarter, print advertising was down 21.6% and radio 10.3%. The drop in internet advertising revenue was slightly less marked, at -6.2%.

Costs, including depreciation, are 4.2% lower compared to the first quarter of 2019. Personnel costs (-3.6%) and other costs (-4.6%) have decreased. It should also be highlighted that these reductions still only marginally reflect the effects of the current restructuring in the printing, administrative and

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

management areas of GEDI News Network and the Parent Company, as well as the local commercial structures of the advertising concessionaire A.Manzoni&C.

Consolidated gross operating losswas € -0.3m compared to € 8.4m in the first quarter of 2019.

Consolidated operating losswas € 67.0m and includes € 58.9m of goodwill write-downs on publications following impairment testing. These write-downs relate for € 34.6m to the Cash Generating Unit (CGU) "La Repubblica", for € 10.2m to the CGU "GEDI News Network Nord Est (Messaggero Veneto, Il Piccolo, Quotidiani Venetiand Corriere delle Alpi)", for € 12.6m to the CGU "GEDI News Network Nord Ovest (La Stampaand Il Secolo XIX)" and for € 1.5m to the CGU "GEDI News Network Livorno (Il Tirreno)" and have been carried out to align the accounting values of each CGU with the relative recoverable values determined on the basis of cash flows under the previous Business Plan approved, adapted to reflect certain scenarios for the possible evolution of the pandemic and its effects on Italian GDP, and consequently on advertising investments, "weighted" relative to degree of probability.

Excluding these write-downs, the adjusted operating profittotals € -8.1m compared to € 1.5m in the first quarter of 2019.

The Consolidated net losswas € 52.9m, including goodwill write-downs on publications performed following impairment testing for € 42.9m, net of the effect on taxes.

Net of the aforementioned effects, the adjusted net lossfor the first quarter of 2020 was € 9.9m, compared to € 2.8m in the corresponding period of the previous year.

Net financial debtat 31 March 2020, before application of the IFRS 16 accounting standard, totals

• 47.7m, slightly up compared to the € 44.1m at the end of 2019: the cash flow from ordinary operations was positive, at € 1.9m, while restructuring plans in progress resulted in expenditure of € 5.3m. Application of IFRS 16 led to recording, at 31 March 2020, of payables for leasing and rights of use of € 52.5m, and therefore net financial debt after IFRS 16 application totalled € 100.2m.

The Group's workforce, including fixed-term employees, at the end of March 2020, numbered 2,185 employees, down 36 compared to the 31 December 2019. The average workforce for the period was 5.3% lower than in the first quarter of the previous year.

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

***

The Company's Director of Administration and Accounts, Mr Gabriele Acquistapace, the company's Financial Reporting Manager, hereby attests, under the terms of paragraph 2 of Article 154-bisof the Consolidated Law on Finance (TUF) that the accounting disclosure contained in this press release corresponds to the results documented in the Company's accounts and ledgers.

***

SUBSEQUENT EVENTS AND OUTLOOK

On 23 April 2020 an agreement was executed that was reached on 02 December 2019 between CIR and EXOR N.V. ("EXOR"), for the sale of all GEDI Gruppo Editoriale S.p.A. ("GEDI") ordinary shares owned by CIR (the "CIR shareholding"), equal to 43.78% of the share capital released by GEDI. Specifically, having obtained the necessary authorisations, the sale was completed of the CIR Shareholding to Giano Holding S.p.A. ("Giano Holding"), a newly established joint stock company wholly owned by EXOR and designated by the latter as the purchaser of the CIR Shareholding, at a price per share of € 0.46, which corresponds to a total amount of € 102.4m. Following completion of the sale of the CIR Shareholding, Giano Holding will launch a mandatory takeover bid regarding all GEDI shares in circulation that it does not already hold, at the same price per GEDI share paid to CIR and, therefore, at the fixed unit price of € 0.46, pursuant to Article 106, paragraph 1 of Italian Legislative Decree No. 58 of 24 February 1998, as amended (the "TUF").

In a context of extremely poor visibility, certain leading operators in the sector forecast that the advertising revenue market may experience a drop of between 15% and 19% in 2020 based on the various scenarios for predicted COVID-19 effects. A drop of these proportions has only been seen during the 2012 financial crisis, where the market fell -14.3%.

With the current situation, all elements feeding into forecasts for the year remain completely uncertain: development of the pandemic, provisions of authorities regarding restarting manufacturing activity that is currently under lockdown and economic support for companies and, finally, following the possible recovery of business, the reaction of advertising investors in the context of a serious recession, as may develop. The circumstances listed render any forecast that the company can formulate extremely uncertain.

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

The Group is focused on doing everything within its powers to manage the crisis: it has implemented further measures to reduce costs and contain expenditure for investments that are not strictly necessary. It is regularly reassessing liquidity positions, through dialogue with its financial partners, with which it has also agreed the temporary suspension of covenants, and continues to adopt all health and safety measures required to safeguard its employees, as defined and requested by the various local authorities.

CONTACTS:

HEADQUARTERS

EXTERNAL RELATIONS

Stefano Mignanego

Tel.: [phone]

e-mail:[e-mail]

GEDI Gruppo Editoriale S.p.A.	Share Capital € 76,303,571.85 fully paid-up - Economic and Administrative Index
Via Cristoforo Colombo, 90, 00147 Rome, Italy	(R.E.A.) Rome no.192573 VAT no. 00906801006
Tel. [phone] Fax. [phone]	Tax ID code and registration Rome Companies' Register No. 00488680588
www.gedispa.it

GEDI Gruppo Editoriale

Consolidated Income Statement

	Jan - Mar	Jan - Mar
(€ million)	2019	2020
Revenues	145,6	129,8
Change in inventories	(0,0)	0,2
Other operating income	1,3	0,4
Purchases	(13,7)	(12,5)
Services received	(65,1)	(61,4)
Other operating charges	(2,8)	(2,9)
Personnel costs	(57,0)	(53,9)
Depreciation, amortization and write-downs	(7,9)	(66,8)
Operating profit	0,5	(67,0)
Financial income (expense)	(3,2)	(1,0)
Investments valued at equity	0,1	0,1
Pre-tax profit	(2,6)	(68,0)
Income taxes	4,6	15,0
Net profit from continuing operations	2,0	(52,9)
Net profit (loss) from discontinued operations	0,0	-
Net profit	2,0	(52,9)
Minority interests	(0,0)	0,0
GROUP NET PROFIT	2,0	(52,9)
Earnings per share, basic	0,004	(0,108)
Earnings per share, diluted	0,004	(0,106)

Consolidated Comprehensive Income Statement

	Jan - Mar	Jan - Mar
(€ million)	2019	2020
NET PROFIT	2,0	(52,9)
Other components of comprehensive income statement:
Profit / (Loss) from valuation of available-for-sale assets	-	-
Taxes on other profits / (losses)	-	-
Other components of comprehensive income statement,
after taxes	-	-
TOTAL COMPREHENSIVE INCOME STATEMENT	2,0	(52,9)
Total comprehensive income statement, of which:
Parent Company's shareholders	2,0	(52,9)
Minority Interests	0,0	(0,0)

Not audited data

GEDI Gruppo Editoriale

Consolidated Balance Sheet

ASSETS	December, 31	March, 31
(€ million)	2019	2020
Intangible assets with an indefinite useful life	425,2	366,8
Other intangible assets	10,3	9,8
Intangible assets	435,6	376,6
Rights of use	53,7	50,8
Property, plant and equipment	73,2	70,9
Investments valued at equity	17,9	18,0
Other investments	9,2	9,2
Non-current receivables	0,9	0,9
Deferred tax assets	38,8	38,2
NON-CURRENT ASSETS	629,3	564,7
Inventories	15,9	15,1
Trade receivables	173,0	137,1
Marketable securities and other financial assets	3,1	-
Tax receivables	4,6	5,4
Other receivables	13,1	20,7
Cash and cash equivalents	51,4	38,0
CURRENT ASSETS	261,2	216,3
TOTAL ASSETS	890,5	781,0
LIABILITIES AND SHAREHOLDERS' EQUITY
December, 31	March, 31
(€ million)	2019	2020
Share capital	76,3	76,3
Reserves	228,3	254,6
Retained earnings (loss carry-forwards)	217,7	62,5
Net profit (loss) for the period	(129,0)	(52,9)
Group Shareholders' Equity	393,4	340,6
Minority interests	0,5	0,5
SHAREHOLDERS' EQUITY	393,9	341,0
Financial debt	1,7	1,7
Payables for rights of use	41,7	39,3
Provisions for risks and charges	8,8	8,9
Employee termination indemnity and other retirement benefits	52,1	51,8
Deferred tax liabilities	90,0	74,4
NON-CURRENT LIABILITIES	194,4	176,1
Financial debt	96,8	83,9
Payables for rights of use	13,6	13,2
Provisions for risks and charges	32,2	29,5
Trade payables	88,3	77,3
Tax payables	16,6	11,7
Other payables	54,7	48,2
CURRENT LIABILITIES	302,2	263,8
TOTAL LIABILITIES	496,6	439,9
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	890,5	781,0

Not audited data

GEDI Gruppo Editoriale

Changes in the Consolidated Net Financial Position

	Jan - Mar	Jan - Mar
(€ million)	2019	2020
SOURCES OF FUNDS
Net profit (loss) for the period, including minority interests	2,0	(52,9)
Net profit (loss) from discontinued operations	(0,0)	-
Depreciation, amortization and write-downs	7,9	66,8
Accruals to provisions for stock option costs	0,2	0,1
Net change in provisions for personnel costs	(2,2)	(0,3)
Net change in provisions for risks and charges	(17,8)	(2,6)
Adjustments for investments valued at equity	(0,1)	(0,1)
Cash flow from operating activities	(10,1)	10,9
Decrease (Increase) in non-current receivables	0,1	0,1
Increase in liabilities/Decrease in deferred tax assets	(0,1)	(15,0)
Increase in payables/Decrease in tax receivables	4,1	(5,7)
Decrease (Increase) in inventories	(2,3)	0,8
Decrease (Increase) in trade and other receivables	13,7	28,3
Increase (Decrease) in trade and other payables	(18,7)	(14,3)
Change in current assets	(3,3)	(5,8)
CASH FLOW FROM OPERATING ACTIVITIES	(13,4)	5,1
TOTAL SOURCES OF FUNDS	(13,4)	5,1
USES OF FUNDS
Net increase in right of use	(66,2)	(0,7)
Net investments in fixed assets	(4,5)	(5,3)
(Acquisition) sale of treasury stocks	0,1	0,0
Other changes	(0,3)	(0,0)
TOTAL USES OF FUNDS	(71,0)	(5,9)
Financial surplus (deficit)	(84,3)	(0,8)
BEGINNIG NET FINANCIAL POSITION	(103,2)	(99,4)
ENDING NET FINANCIAL POSITION	(187,5)	(100,2)

Not audited data

GEDI Gruppo Editoriale

Statement of Consolidated Cash Flows

	Jan - Mar	Jan - Mar
(€ million)	2019	2020
OPERATING ACTIVITIES
Net profit (loss) for the period, including minority interests	2,0	(52,9)
Adjustments:
- Depreciation, amortization and write-downs	4,5	66,8
- Accruals to provisions for stock option costs	0,2	0,1
- Net change in provisions for personnel costs	(2,2)	(0,3)
- Net change in provisions for risks and charges	(17,8)	(2,6)
- Adjustments in value of financial assets	(0,0)	-
- Adjustments for investments valued at equity	(0,1)	(0,1)
Cash flow from operating activities	(13,6)	10,9
Change in current assets and other flows	(1,5)	(5,5)
CASH FLOW FROM OPERATING ACTIVITIES	(15,1)	5,4
of which:
Interest received (paid) through banks	(0,3)	(0,4)
Received (outlay) for income taxes	-	-
INVESTING ACTIVITIES
Outlay for purchase of fixed assets	(4,6)	(5,3)
Received on disposals of fixed assets	0,1	0,1
CASH FLOW FROM INVESTING ACTIVITIES	(4,5)	(5,3)
FINANCING ACTIVITIES
(Acquisition) sale of treasury stocks	0,1	0,0
Outlay for rights of use leasing	(13,3)	(3,7)
Issue (repayment) of other financial debt	-	(9,9)
Other changes	(0,1)	(0,0)
CASH FLOW FROM FINANCING ACTIVITIES	(13,3)	(13,6)
Increase (decrease) in cash and cash equivalents	(32,9)	(13,4)
Cash and cash equivalents at beginning of the period	77,2	51,2
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	44,3	37,8

Not audited data

GEDI Gruppo Editoriale

Consolidated Net Financial Position

	March, 31	December, 31	March, 31
(€ million)	2019	2019	2020
Financial receivables from Group companies	0,2	0,2	0,2
Financial payables to Group companies	-	-	-
Cash and bank deposits	44,2	51,2	37,8
Current account overdrafts	(0,1)	(0,2)	(0,3)
Net cash and cash equivalents	44,3	51,2	37,8
Marketable securities and other financial assets	0,8	3,1	-
Bond issue	(100,8)	-	-
Other bank debt	(6,2)	(23,0)	(23,1)
Other financial debt	(62,8)	(75,3)	(62,3)
Other financial assets (liabilities)	(169,0)	(95,3)	(85,4)
NET FINANCIAL POSITION PRE-IFRS 16	(124,7)	(44,1)	(47,7)
Payables for leasing and rights of use-IFRS 16	(62,8)	(55,3)	(52,5)
NET FINANCIAL POSITION POST-IFRS 16	(187,5)	(99,4)	(100,2)

Not audited data