Cairo Communication S p A : Results at 31 March 2024 approved

Press Release - Results at 31 March 2024 approved

• In first quarter 2024, the Group achieved consolidated gross revenue of Euro 244.3 million (Euro 256.2 million in 2023) and growing margins, with EBITDA at Euro 16.1 million (Euro 13.6 million in 2023), EBIT at Euro -2.8 million (Euro -6.5 million in 2023) and a net result of Euro -2.0 million (Euro -3 million in 2023)
• In the quarter, the Group generated positive cash flows, improving the net financial position by Euro 18.6 million versus 31 December 2023
• RCS ranks as Italy's top online publisher also in the quarter, with an aggregate figure of 31.8 million average monthly unique users (net of duplications - Audicom)
• At end March, the RCS Group's titles confirm an active digital customer base of over one million subscriptions, 615 thousand for Corriere della Sera, Italy's leading newspaper also on newsstands, 224 thousand for Gazzetta, 143 thousand for El Mundo, and 89 thousand for Expansión
• La7 achieved high ratings, 3.59% in the all-day share and 5.23% in prime time, and was the fifth channel for ratings in this time slot and the fourth in March with a 5.36% share, position confirmed in April with a 5.6% share
• Cairo Editore's magazine publishing division, with EBITDA of Euro 1.9 million, also improved its results versus 2023 (Euro 1.2 million)

Milan, 14 May 2024: at its meeting today, the Board of Directors of Cairo Communication reviewed and approved the Interim Management Statement at 31 March 2024.

Income statement and balance sheet figures (€ millions)	31/03/2024	31/03/2023
Consolidated gross revenue	244.3	256.2
EBITDA before net non-recurring expense	16.3	14.0
EBITDA	16.2	13.6
EBIT	(2.8)	(6.5)
Profit (loss) attributable to the owners of the parent	(2.0)	(3.0)
	31/03/2024	31/12/2023
Net financial position (net financial debt)	13.8	(4.8)

The first quarter of 2024 was dominated by the ongoing conflicts in Ukraine and the Middle East, with their repercussions extending to the economy and trade. These events persist in creating a state of significant overall uncertainty.

Against this backdrop, in first quarter 2024:

• the Group achieved higher margins (EBITDA, EBIT, and net result) than in the same period of 2023 and continued to generate positive cash flows, improving the net financial position by approximately Euro 18.6 million versus 31 December 2023;
• RCS's margins (EBITDA, EBIT and net result) too were up versus first quarter 2023. RCS confirmed remarkable circulation levels at newsstands and continued its growth in the digital field, ranking as Italy's top online publisher also in first quarter 2024 with an aggregate figure of 31.8 million average monthly unique users (net of duplications - Audicom). At end December, the total active digital customer base (digital edition, membership and m-site) of Corriere della Sera reached 615 thousand subscriptions (595 thousand at end 2023 - Internal Source), while the customer base of Gazzetta's pay products (G ALL, G+, GPRO and Fantacampionato) reached 224 thousand subscriptions (214

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thousand at end 2023 - Internal Source). Digital subscriptions grew in Spain too (digital edition and premium), reaching at year end 143 thousand subscriptions for El Mundo (136 thousand at end 2023 - Internal Source) and 89 thousand subscriptions for Expansión (82 thousand at end 2023 - Internal Source). Both Italian newspapers, Corriere della Sera and La Gazzetta dello Sport, and in Spain Marca and Expansión, retained their circulation leadership in their respective market segments (ADS for Italy and OJD for Spain). EGM's latest April 2024 "General Media Research" survey confirms Unidad Editorial as the leader in Spanish print media, with over 1.5 million overall daily readers of its three daily newspapers. The main digital performance indicators confirm the top market position of RCS, with the Corriere della Sera and La Gazzetta dello Sport brands, which counted in first quarter 2024

• 30.3 million and 15.5 million average monthly unique users, and 3.9 million and 2.1 million average daily unique users (Audicom). The main social accounts of the Corriere System at 31 March 2024 reached approximately 12.7 million total followers (considering Facebook, Instagram, X, LinkedIn and TikTok - Internal Source) and those of La Gazzetta dello Sport 6.1 million (considering Facebook, Instagram, X, TikTok and YouTube - Internal Source). In Spain, as part of the online activities, elmundo.es, marca.com and expansión.com reached 40.8 million, 86.8 million and 9.4 million average monthly unique browsers in first quarter 2024, comprising both domestic and foreign browsers and including apps (Google Analytics). The social audience of Unidad Editorial Group titles (Internal Source) stands at 10.9 million followers for El Mundo, 19 million for Marca and 2.4 million for Telva (considering Facebook, Instagram and X) and 1.5 million for Expansión (considering Facebook, Instagram, X and LinkedIn). Net operating revenue amounted to Euro 168.9 million, with total digital revenue (Italy and Spain) amounting to approximately Euro 44.4 million and accounting for approximately 26.3% of total revenue. Total advertising sales from RCS online media amounted to Euro 27 million in first quarter 2024, making for 47% of total advertising revenue.

• the TV publishing (La7) and network operator segment achieved higher margins (EBITDA, EBIT and net result) than those achieved in the same period of 2023 and high ratings of the La7 channel (3.59% all-day share and 5.23% prime time). Gross advertising sales on La7 and La7d channels amounted to approximately Euro 35.8 million (Euro 35.4 million in 2023). Specifically, in the quarter La7 ranked as the fifth channel in prime time ratings and in March the fourth with a 5.36% share, a position confirmed in April with a 5.6% share. In the morning slots too (7:00/12:00), La7 achieved a 3.61% share in the three months, claiming the fifth position in the national ranking. La7d's share in first quarter 2024 was 0.43% in all-day and 0.48% in prime time. Starting in April, La7d's programming has been enhanced with a revamped and dynamic schedule featuring new exclusive content. La7's news and discussion programmes in first quarter 2024 all continued to deliver remarkable results: Otto e Mezzo with 7.5% average share from Monday to Friday, TgLa7 8 p.m. edition with 6.5% from Monday to Friday, diMartedi with 7.5%, Piazzapulita with 5.1%, Propaganda Live with 6%, In Altre Parole with 5.3% on Saturdays, In Onda with 6.8%, Omnibus La7 with 3.7%, Coffee Break with 4.2% from Monday to Friday, L'Aria che tira with 4.7%, Tagadà with 3.7%, and re-runs of previous episodes of Una Giornata Particolare with 4.6%. In first quarter 2024, La7 confirmed its leadership among generalist TV stations in terms of news hours (almost 14 average hours) and was the second channel in terms of live hours (an average of almost 11 hours per day). On the digital front, in first quarter 2024 average monthly unique users were 6.4 million and daily unique users 438 thousand. Stream views were 18.5 million per month. In the quarter, average monthly unique browsers of Tg.La7.it (3.2 million) grew by 140% versus the same period of 2023. At end March 2024, followers of La7 and its active programmes on Facebook, X, Instagram and TikTok were 7.2 million;
• the magazine publishing segment Cairo Editore, with an EBITDA of Euro 1.9 million, also achieved higher results than in 2023 (Euro 1.2 million).

In first quarter 2024, consolidated gross revenueamounted to approximately Euro 244.3 million (comprising gross operating revenue of Euro 232.4 million and other revenue and income of Euro 11.8 million) versus Euro 256.2 million in 2023 (comprising gross operating revenue of Euro 243.4 million and other revenue and income of Euro 12.8 million).

EBITDAand EBITcame to Euro 16.2 million and Euro -2.8 million (Euro 13.6 million and Euro -6.8 million in the same period of the prior year). Net non-recurring expense amounted to Euro -0.1 million (Euro -0.4 million in 2023). The Group's seasonality factors generally impact on the results of the first and third quarters of the year.

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The net resultattributable to the owners of the parent came to Euro -2.0 million (Euro -3 million in 2023).

Looking at the business segments, in first quarter 2024:

• in the magazine publishing segment (Cairo Editore), EBITDAand EBITcame to Euro 1.9 million and Euro 1.6 million (Euro 1.2 million and Euro 0.8 million in 2023). Regarding weeklies, with approximately 0.9 million average copies sold in first quarter 2024 (ADS January-March2024), Cairo Editore retains its position as the leading publisher in copies of weeklies sold at newsstands, with an approximately 29% market share. Including the average sales of titles out of the ADS survey (comprising copies sold of "Enigmistica Più" and of "Enigmistica Mia"), average copies sold were approximately 1 million;
• in the TV publishing (La7) and network operator segment, EBITDAgrew to reach approximately Euro 1.8 million (Euro 0.9 million in 2023). Mention should be made that the TV publishing segment's seasonality factors generally impact on the results of the first and third quarters of the year. EBITwas approximately Euro -2.2million (Euro -3.4million in 2023);
• in the advertising segment, EBITDAcame to Euro -0.6 million (Euro -0.3 million in 2023) and EBITto Euro -1.3 million (Euro -0.9 million in 2023);
• in the RCS segment, in the consolidated financial statements of Cairo Communication, EBITDA1 and EBITamounted to Euro 13.2 million and Euro -0.9 million (Euro 11.8 million and Euro -3 million in the same period of the prior year). In first quarter 2024, initiatives continued on maintaining and developing revenue, boosting the publishing systems' range of products, developing the digital platforms and enhancing the vertical publishing systems. In Italy, regarding the main initiatives only, the new digital services "Chiedi all'Esperto" and "Sportello Cancro" were launched for Corriere della Sera, new video columns were created on Corriere TV, the fast channel "Talks by Corriere della Sera" was launched on Samsung TV Plus, the podcast offer was enhanced, and the cross-media project "Questa è l'Europa" was launched. Important events were also organized, including Obiettivo5, Italia Genera Futuro, the Pact4Future International Forum, the series of meetings Le Economie d'Italia, "Come cambia l'informazione, dietro le quinte del Corriere". Amica launched its first podcast series dedicated to fashion in February. La Gazzetta dello Sport opened two new social channels, LinkedIn and YouTube, launched a new app that provides access to both the site's news and the newspaper's browser in digital format, opened three new podcast columns, launched a new cross-platform (site and social channels) organization for the video area, and launched the Fantacampionato's "Torneo dei lettori del quotidiano". In Spain, regarding the main initiatives only, Lectura launched its new version in February, in March Marca revamped its print edition with a new look and expanded its range of content and created the new section "Ganamos Juntos", to support a social cause each month; in March again, Expansión launched a new series of video interviews with leading figures from the Spanish business world. Since January, Radio Marca has extended its territorial reach by adding 11 new stations in Castilla and Leon, a region inhabited by 2 million people. In February, Escuela de Formacion launched a new, fully revamped web portal to access its educational offerings. Work also continued on the organization of major events, including participation with El Mundo and La Lectura in the International Contemporary Art Fair in Madrid, the Foro Internacional de El Mundo "Europa, un año decisivo", which inaugurates a series of initiatives aimed at celebrating the 35th anniversary of the title, and the start of the "España está de moda" series of meetings organized by Telva.

The consolidated net financial position at 31 March 2024 stood at approximately Euro 13.8 million (net debt of Euro 4.8 million at end 2023). The change versus end 2023 is explained mostly by the positive contribution from ordinary operations, offset by outlays for technical expenditure and non-recurring expense totaling Euro 9.5 million. Mention should be made that working capital is still affected by the timing of the collection of tax receivables provided for the publishing industry (at 31 March 2024, Euro 43.5 million residual receivables also related to the years 2021, 2022 and 2023).

1 Mention should be made that RCS adopts a different definition of EBITDA from the one used by the Cairo Communication Group, as indicated in the section below "Alternative Performance Measures". As a result of these differences, which lie in the provisions for risks and in the allowance for impairment, totaling Euro 0.5 million in first quarter 2024 - EBITDA shown in the RCS Interim Management Statement at 31 March 2024, approved on 13 May 2024, amounted to Euro 12.6 million.

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Total net financial debt, which includes financial liabilities from leases recognized in accordance with IFRS 16 (mainly property leases) of Euro 156.6 million, amounted to Euro 142.7 million (Euro 150.2 million at 31 December 2023).

***

The first quarter of 2024 was dominated by the ongoing conflicts in Ukraine and the Middle East, with their repercussions extending to the economy and trade. These events persist in creating a state of significant overall uncertainty. The Group has no direct exposure and/or business activities towards the markets affected by the conflict and/or sanctioned entities.

These conflicts, and their impacts, are still ongoing even at the date of approval of this Interim Management Statement.

In the opening months of 2024, the Group met the public's strong need to stay informed through its information offering, ensuring a timely service to its viewers and readers. The La7 programmes, the daily editions of Corriere della Sera and La Gazzetta dello Sport in Italy, and of El Mundo, Marca and Expansión in Spain, the Group's magazines and web and social platforms have played a pivotal role in informing, focusing on their mission as a non-partisan, trustworthy public service, and establishing themselves as authoritative players in daily television, print and online information, with strong television ratings and digital traffic figures.

The developing situation and the potential effects on the business outlook, which are constantly monitored, are unforeseeable at this time as they depend, inter alia, on the evolution, developments and duration of the conflicts in Ukraine and the Middle East and their geopolitical effects.

In consideration of the actions already implemented and those planned, in the absence of a deterioration of the consequences from the ongoing conflicts and their developments in Ukraine and the Middle East and/or cost dynamics, the Group believes that it can confirm the goal of achieving strongly positive margins (EBITDA) in 2024, up from those achieved in 2023, and of continuing with further cash generation from operations.

Developments in the ongoing conflicts, the overall economic climate and the core segments could, however, affect the full achievement of these targets.

* * *

The Financial Reporting Manager of Cairo Communication S.p.A., Marco Pompignoli, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Finance Law, that the accounting information contained herein is consistent with the underlying accounting documents, books and records.

Cairo Communication is one of the leading groups in the publishing and advertising sales segments, recognized as one of the first to have developed a multimedia sales approach. With the acquisition of the control of RCS MediaGroup, Cairo Communication establishes itself as a major multimedia publishing group, well-positioned to become the main player on the Italian market, with a strong international presence in Spain, by leveraging on the high quality and diversification of products in the dailies, web, television, magazines and sporting events segments.

For further information: Mario Cargnelutti, Investor Relations, [phone], [e-mail] press release is also available on the Company's website www.cairocommunication.it

in the section NOTICES AND DOCUMENTS / PRESS RELEASES

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Summary of the main consolidated income statement figures at 31 March 2024

The main consolidated income statement figures in first quarter 2024 can be compared as follows with those of first quarter 2023:

(€ millions)	31/03/2024	31/03/2023
Gross operating revenue	232.4	243.4
Advertising agency discounts	(12.1)	(12.7)
Net operating revenue		220.3	230.7
Change in inventory	1.0	1.0
Other revenue and income	11.8	12.8
Total revenue		233.2	244.5
Production costs	(136.7)	(148.8)
Personnel expense	(80.2)	(81.7)
Non-recurring income and expense	(0.1)	(0.4)
EBITDA		16.2	13.6
Amortization, depreciation, provisions and write-downs	(19.0)	(20.1)
EBIT		(2.8)	(6.5)
Other gains (losses) from financial assets/liabilities	(0.1)	-
Net financial income	(3.5)	(3.0)
Profit (loss) before tax		(6.4)	(9.5)
Income tax	3.7	5.6
Non-controlling interests	0.7	0.8
Profit (loss) for the period attributable to the owners	(2.0)	(3.0)
of the parent

Unaudited reclassified statements

The Group statement of comprehensive income can be analyzed as follows:

€ millions	31 March 2024	31 March 2023
Profit (loss) for the year	(2.7)	(3.9)
Reclassifiable items of the comprehensive income statement
Gains (losses) from the translation of financial statements denominated in
foreign currencies	0.0	0.0
Gains (losses) from cash flow hedges	(0.1)	(0.1)
Reclassification of gains (losses) from cash flow hedges	-	(0.1)
Tax effect	-	0.0
Total comprehensive income for the period	(2.8)	(4.0)
- Owners of the parent	(2.1)	(3.2)
- Non-controlling interests	(0.7)	(0.8)
	(2.8)	(4.0)

Unaudited reclassified statements

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Summary of the main consolidated statement of financial position figures at 31 March 2024

The main consolidated statement of financial position figures at 31 March 2024 can be analyzed versus

the situation at 31 December 2023:

(€ millions)	31/03/2024	31/12/2023
Tangible assets	106.1	107.1
Rights of use on leased assets	142.0	130.4
Intangible assets	984.2	987.3
Financial assets	34.2	35.0
Deferred tax assets	86.4	84.0
Net working capital	(67.0)	(47.1)
Total assets	1,285.9	1,296.7
Non-current liabilities and provisions	86.9	87.8
Deferred tax provision	163.6	163.4
(Financial position)/Net debt	(13.8)	4.8
Liabilities from leases (pursuant to IFRS 16)	156.6	145.4
Equity attributable to the owners of the parent	546.3	548.4
Equity attributable to non-controlling interests	346.3	346.9
Total equity and liabilities	1,285.9	1,296.7

Unaudited reclassified statements

The consolidated net financial position at 31 March 2024, versus the situation at 31 December 2023, is summarized as follows:

Net financial position	31/03/2024	31/12/2023	Changes
(€ millions)
Cash and cash equivalents	57.9	58.1	(0.2)
Other current financial assets and financial	0.7	0.9	(0.2)
receivables
Current financial assets (liabilities) from derivative	0.1	0.2	(0.1)
instruments
Current financial payables and payables to banks	(4.1)	(23.6)	19.5
Current net financial position (net financial	54.6	35.6	19.0
debt)
Non-current financial payables	(40.8)	(40.4)	(0.4)
Non-current financial assets (liabilities) from	-	-	-
derivative instruments
Non-current net financial position (net	(40.8)	(40.4)	(0.4)
financial debt)
Net financial position (net financial debt)	13.8	(4.8)	18.6
Liabilities from leases (pursuant to IFRS 16)	(156.6)	(145.4)	(11.1)
Total net financial position (net financial	(142.7)	(150.2)	7.5
debt)

Unaudited reclassified statements

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Segment reporting at 31 March 2024

The Group's performance can be read better by analyzing the results by main business segment:

	Magazine publishing	Advertising	TV publishing	RCS	Eliminations	Total
2024	Cairo Editore		La7		and
					unallocated
(€ millions)			and network
		operator

Gross operating revenue Advertising agency discounts

Net operating revenue

Change in inventory

Other revenue and income

Total revenue

Production costs

Personnel expense

Non-recurring income (expense)

EBITDA

Amortization, depreciation, provisions and write-downs

EBIT

Other gains (losses) from financial assets/liabilities

Net financial income

Profit (loss) before tax

Income tax

Non-controlling interests

Profit (loss) for the period attributable to the owners of the parent

16.5	79.2	28.1	175.4	(66.8)	232.4
-	(10.2)	-	(6.5)	4.6	(12.1)
16.5	69.0	28.1	168.9	(62.2)	220.3
(0.0)	-	-	1.0	-	1.0
2.6	1.1	0.2	8.9	(0.9)	11.8
19.1	70.0	28.4	178.9	(63.2)	233.2
(13.2)	(65.1)	(16.8)	(104.6)	63.0	(136.7)
(3.9)	(5.5)	(9.7)	(61.0)	(0.0)	(80.2)
-	-	-	(0.1)	-	(0.1)
1.9	(0.6)	1.8	13.2	(0.1)	16.2
(0.3)	(0.7)	(4.0)	(14.1)	0.1	(19.0)
1.6	(1.3)	(2.2)	(0.9)	(0.0)	(2.8)
(0.0)	-	-	(0.1)	-	(0.1)
0.0	(0.7)	0.3	(3.1)	0.0	(3.5)
1.7	(2.0)	(1.9)	(4.1)	(0.0)	(6.4)
(0.0)	0.5	0.4	2.9	(0.0)	3.7
-	0.2	-	0.5	0.0	0.7
1.6	(1.3)	(1.5)	(0.8)	(0.0)	(2.0)

Unaudited reclassified statements

	Magazine publishing	Advertising	TV publishing	RCS	Eliminations	Total
2023	Cairo Editore		La7		and
					unallocated
(€ millions)			and network
		operator

Gross operating revenue Advertising agency discounts

Net operating revenue

Change in inventory

Other revenue and income

Total revenue

Production costs Personnel expense

Non-recurring income (expense)

EBITDA

Amortization, depreciation, provisions and write-downs

EBIT

Other gains (losses) from financial assets/liabilities

Net financial income

Profit (loss) before tax

Income tax

Non-controlling interests

Profit (loss) for the period attributable to the owners of the parent

Unaudited reclassified statements

18.0	81.3	28.1	185.8	(69.9)	243.4
-	(10.4)	-	(7.0)	4.8	(12.7)
18.0	70.9	28.1	178.8	(65.2)	230.7
(0.0)	-	-	1.0	-	1.0
3.5	0.6	0.1	9.3	(0.6)	12.8
21.5	71.5	28.2	189.1	(65.8)	244.5
(16.1)	(66.2)	(17.6)	(114.8)	65.8	(148.8)
(4.2)	(5.6)	(9.7)	(62.2)	(0.0)	(81.7)
-	-	-	(0.4)	-	(0.4)
1.2	(0.3)	0.9	11.8	0.0	13.6
(0.5)	(0.6)	(4.3)	(14.8)	0.0	(20.1)
0.8	(0.9)	(3.4)	(3.0)	0.0	(6.5)
-	-	-	0.0	-	0.0
(0.0)	(0.1)	0.1	(2.9)	(0.0)	(3.0)
0.7	(0.9)	(3.3)	(5.9)	0.0	(9.5)
0.4	0.2	0.8	4.2	(0.0)	5.6
-	0.2	-	0.7	(0.0)	0.8
1.1	(0.6)	(2.5)	(1.1)	0.0	(3.0)

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Details of consolidated revenue at 31 March 2024

Gross operating revenue in first quarter 2024, split up by main business segment, can be analyzed as follows versus the amounts of the same period of 2023:

2024	Magazine	Advertising	TV publishing La7	RCS	Eliminations	Total
publishing			and unallocated
(€ millions)	Cairo		and network
Editore		operator
TV advertising	-	35.8	24.7	0.1	(24.9)	35.6
Advertising on print media,	1.2	43.0	0.4	63.7	(39.5)	68.7
Internet and sporting events
Other TV revenue	-	-	0.7	0.6	-	1.3
Magazine over-the-counter sales
and subscriptions	15.6	-	-	80.5	(0.4)	95.7
VAT relating to publications	(0.2)	-	-	(0.7)	-	(0.9)
Sundry revenue	-	0.4	2.4	31.2	(2.0)	32.0
Total gross operating revenue	16.5	79.2	28.1	175.4	(66.8)	232.4
Other revenue	2.6	1.1	0.2	8.9	(0.9)	11.8
Total gross revenue	19.1	80.2	28.4	184.3	(67.7)	244.2
2023	Magazine	Advertising	TV publishing La7	RCS	Eliminations	Total
publishing			and unallocated
(€ millions)	Cairo		and network
Editore		operator
TV advertising	-	35.4	24.6	0.0	(24.9)	35.2
Advertising on print media,	1.4	45.5	0.6	71.1	(42.5)	76.1
Internet and sporting events
Other TV revenue	-	-	0.4	0.7	(0.1)	1.0
Magazine over-the-counter sales
and subscriptions	16.9	-	-	83.8	(0.5)	100.2
VAT relating to publications	(0.2)	-	-	(0.8)	-	(1.0)
Sundry revenue	-	0.4	2.5	31.0	(2.0)	31.8
Total gross operating revenue	18.0	81.3	28.1	185.8	(69.9)	243.4
Other revenue	3.5	0.6	0.1	9.3	(0.6)	12.8
Total gross revenue	21.5	81.9	28.2	195.1	(70.6)	256.2

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Alternative performance measures

In this press release, in order to provide a clearer picture of the financial performance of the Cairo Communication Group, besides of the conventional financial measures required by IFRS, a number of alternative performance measures are shown that should, however, not be considered substitutes of those adopted by IFRS.

The alternative measures are:

• EBITDA: used by Cairo Communication as a target to monitor internal management, and in public presentations (to financial analysts and investors). It serves as a unit of measurement to evaluate Group and Parent operational performance, with EBIT, and is calculated as follows:
  Result from continuing operations, before tax+/- Net finance income
  +/- Other income (expense) from financial assets and liabilities

EBIT - Operating profit (loss)

• Amortization & depreciation
• Bad debt impairment losses
• Provisions for risks

EBITDA - Operating profit (loss), before amortization, depreciation, provisions and write-downs.

EBITDA (earnings before interest, tax, depreciation and amortization) is not classified as an accounting measure under IFRS, therefore, the criteria adopted for its measurement may not be consistent among companies or different groups.

RCS defines EBITDA as operating profit/loss (EBIT) before depreciation, amortization and write-downs on fixed assets

The main differences between the two definitions of EBITDA lie in the provisions for risks and in the allowance for impairment, included in the EBITDA definition adopted by RCS, while they are excluded from the EBITDA definition adopted by Cairo Communication. Owing to the differences between EBITDA definitions adopted, in this press release, consolidated EBITDA has been determined consistently with the definition adopted by the parent company Cairo Communication.

Consolidated gross revenue: for a more detailed view, and in consideration of the specific features of the segment, operating revenue - for advertising revenue - includes gross operating revenue, advertising agency discounts and net operating revenue. Consolidated gross revenue is equal to the sum of gross operating revenue and other revenue and income.

The Cairo Communication Group also considers the net financial position (net financial debt) as a valid measure of the Group's financial structure determined as a result of current and non-current financial liabilities, net of cash and cash equivalents and current financial assets, excluding financial liabilities (current and non-current) from leases previously classified as operating and recognized in the financial statements in accordance with IFRS 16.

The total net financial position (net financial debt) also includes financial liabilities from leases recorded in the financial statements pursuant to IFRS 16, previously classified as operating leases and non- remunerated debt, which have a significant implicit or explicit financing component (e.g. trade payables with a maturity of over 12 months), and any other non-interest-bearing loans (as defined by the "Guidelines on disclosure requirements under the Prospectus Regulation" published by ESMA on 4 March 2021 with document "ESMA32-382-1138" and taken up by CONSOB in communication 5/21 of 29 April 2021).

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