Arnoldo Mondadori Editore S.p.A. hereby informs that the following documents are available from today at the Company’s registered office, at the authorized storage mechanism 1Info (www.1info.it) and on the website www.gruppomondadori.it (Governance section):

• the 2017 Annual Report, which includes the draft financial statements, the consolidated financial statements for the year ended 31 December 2017, the Directors’ Report on Operations (comprising the Non-Financial Statement), the certifications pursuant to art. 154 bis, par. 5 of Legislative Decree no. 58/1998, the Independent Auditors’ reports and the Statutory Auditors’ Report;
• the Report on Corporate Governance and Ownership Structure for the year 2017;
• the Remuneration Report pursuant to art. 123-ter of Legislative Decree no. 58/1998.

In sort of triptych that includes the previous experiences at the Art Biennales of 2013 and 2015, the Holy See takes part for the first time this year in the Venice Architecture Biennale, through the creation of the Vatican Chapels Pavilion curated by Francesco Dal Co.

The project takes its cue from a precise model, the Woodland Chapel built in 1920 by the renowned architect Gunnar Asplund at the Woodland Cemetery in Stockholm, a work featured in an initial exhibition space, illustrated with original drawings of the project.

The theme of the chapel as a place of orientation, encounter, mediation and salutation – as Asplund put it – was suggested to ten architects who were invited to design and build ten chapels in a wooded area at one end of the Venetian island of San Giorgio Maggiore. Therefore this will be a composite, distributed pavilion, visited in stages along an itinerary that is also a spiritual pilgrimage. The chapels created by the architects, thanks to the indispensable support of important contractors and contributors, will be arranged in “an utterly abstract natural setting, marked only by its presence on the lagoon, its openness to the water,” as Dal Co explains, emphasizing the unique, original character of the initiative that has granted the architects complete freedom to design “without any reference to commonly recognized canons.” Inside the chapels, the shared fulcrum and identifying, unifying feature is represented by the presence of the altar and the lectern.

The choice of the invited architects was based on the decision to focus on designers capable of applying different expressive languages, all strong characters from the standpoint of constructive experimentation, belonging to different generations and hailing from Europe, Australia, Japan, the United States and South America, in order to reflect the universal – indeed  “catholic” – nature of the Church.

The architects who have designed the ten chapels and the exhibition space of Vatican chapels are: Andrew Berman (USA), Francesco Cellini (Italy), Javier Corvalàn (Paraguay), Eva Prats and Ricardo Flores (Spain), Norman Foster (UK), Terunobu Fujimori (Japan), Sean Godsell (Australia), Carla Juaçaba (Brazil), Smiljan Radic (Chile), Eduardo Souto de Moura (Portugal), while Francesco Magnani and Traudy Pelzel are the designers of the pavilion that will contain the exhibition of the drawings of Gunnar Asplund for the “Skogskapellet,” the “Woodland Chapel” in Stockholm.

The opening of the Pavilion, with the presence of Cardinal Ravasi, will be on Friday 25 May in the gardens of the Island of San Giorgio in Venice. The Pavilion will remain open to the public from 26 May to 25 November 2018.

The catalogue edited by Francesco Dal Co, with essays by Gianfranco Ravasi, Francesco Dal Co and Elisabetta Molteni, published by Electaarchitettura, will be available from 23 May.

Panorama d’Italia, now in its fifth year, presents a completely new edition following the record achieved in 2017. The live & media experience of Panorama, that looks at and talks about Italy in streets and squares around the country through initiatives and events open to the public, returns with its celebration of the protagonists of the best of Italian business, economy, culture, science and food and wine, in 6 stages, running between April and September. The Mondadori Group’s newsmagazine, edited by Raffaele Leone, will cover the country, from north to south, involving examples of local excellence and prestigious guests, moderated by some of the magazine’s leading journalists and contributors. For four days each of the cities on the tour will host a rich calendar of event in the most lively and representative locations and in close contact with the protagonists.

Staring in Florence (11-14 April) and continuing to Bergamo (9-12 May), Reggio Emilia and Piacenza (23-26 May), Naples (13-16 June), Palermo (12-15 September), Roma (26-29 September). To which should be added, in June, This is Italy, a special stage in New York (28 June-2 July) that last year saw an exciting 3 days of event and workshops dedicated to Italian companies and excellence that have managed to take root in the United States.

“We’re back! Not just for a new tour around Italy, as in the past four years, but with initiatives, new faces and the benefits of accumulated experience,” declared Panorama editor Raffaele Leone. “Talking about Italy in Panorama and then having the opportunity to meet it in the various towns and cites gives us a great sense of satisfaction and lots of ideas. The magazine thus becomes an event, and opportunity for exchange and direct contact with the country. Our aim has been to enhance our relationship with people  and we have achieved this, and we don’t want to stop,” Leone added.

An authentic consecration of a tried and tested formula that includes talk shows, debates with leading figures from national politics, conferences and entertainment: in the last four years more than 20 million people have been reached by the tour, with over 500,000 taking direct part in the events in 45 towns and cities, with more than 1600 guests and speakers (including government ministers, Regional Presidents and mayors), and almost 1000 events free and open to the public. This year the format will be expanded to include a new editorial team to cover a complete range of themes and issues of current interest:: alongside the editor Raffaele Leone and the editorial director of the tour Sergio Luciano, will be Nicola Porro, protagonist of talk shows on territorial growth and development; Oscar Giannino, who will oversee meetings with businesses on the economy and innovation; Vittorio Sgarbi, the unrivalled animator of lessons about art and the discovery of Italian treasures; the editor of Focus Jacopo Loredan who will moderate meetings looking at science and technology; Marco Ventura for encounters with local and national politics; Roberto Giacobbo literally “leading” city bike tours; the editor of Icon Michele Lupi who will run the meetings with leading figures from the world of fashion and Made in Italy; Fiammetta Fadda will talk to some of the best chefs in Italy, the editor of Ciak Piera Detassis will meet with stars from the cinema, Gianni Poglio with stars from the world of music and Antonio Carnevale with writers and authors.

A Panorama d’Italia info-point will be manned continuously in the heart of each city for the duration of the event and in other areas a number of institutional and entertainment events will be organised. Key figures from the local and national economy will discuss together examples of territorial excellence and development prospects, in collaboration with local Chambers of Commerce and universities. At each city on the tour, the Mondadori Group company Inthera will conduct research on the territory of each location to understand opinions and the level of satisfaction of local citizens. And, during the talk show “Presidente mi spieghi” (President Please Explain), the regional governor will respond live to questions from citizens.

Once again the tour will also feature the meetings organised by Focus and dedicated to the environment, in collaboration with the Italian Research Council and Air Force, and to astronomy with Umberto Guidoni who will take everyone on a “Journey into Space” with scientists and astronauts from the European Space Agency (ESA).

Also this year a central focus will be on young people, training and employment, including the return of  the project for children “100 libri per 1 scuola” (100 books for 1 school), that rewards the city’s high schools and best students, based on a competitve essay on their favourite book. In fact, thanks to the support of Mondadori Books, Panorama has been able to donate over 8,000 during previous tours to the winning schools. Moreover, also the 2018 edition of Panorama d’Italia will offer the possibility for high-school students, undergraduates and recent graduates to take part in round table discussions and individual orientation meetings organised in collaboration with HRCommunity Academy Italia, with the heads of human resources from leading companies in the area.

Finally, and also with the aim of promoting local business excellence, Panorama and IBM will take up a new challenge: to offer concrete answers to local entrepreneurs and companies who wish to raise a particular business problem. This is IBM Cloud Garage, an initiative that, in the space of two weeks, aims to find solutions which are presented at a specially dedicated event.

Panorama d’Italia on TV
Once again this year, the Mondadori weekly’s live & media event will also appear officially on the Mediaset TV channels. The late slot on Rete 4 will see the return of “Grand Tour d’Italia”, a programme that will provide coverage of and details about each stage of the tour.

Panorama d’Italia online
The main events will also be available live on Panoramaditalia.it, as well as the Panorama.tv channel and on Facebook. Over the last years some 900 hours of events have been broadcast in  live streaming, in addition to real-time updates. Also this year, users will be able to find an area with recordings of the events on the tour’s dedicated web site, that also guarantees a free three-month subscription to the digital edition of Panorama.

Impressions and experiences of the events of Panorama d’Italia can be shared on the leading social networks using the hashtag #panoramaditalia. The Twitter account @panoramaditalia will offer real-time comment on all of the most significant moments involving the protagonists of the meetings.

The partners
Panorama d’Italia can count on the support of high level partners that share a commitment to enhancing the value of Italian territorial excellence. They include: ab medica, ACEA, Autostrade per l’Italia, Cobat, Enel, Grimaldi Lines, IBM, Intesa San Paolo, Lottomatica, McDonald’s, Menarini, Università Telematica Pegaso. Our charity partnership with Lega del Filo d’oro will also be present on every stage of the tour and, in addition, stage by stage media partnerships will be activated with the leading local newspapers, TV and radio stations. Panorama d’Italia is produced in collaboration with Fluendo srl for executive production and logistics; the enrolment platform is managed by The Rocks, while digital strategy is developed and curated by FpS Media.

For more information about Panorama d’Italia 2018 please go to: http://bit.ly/Panoramaditalia2018

Arnoldo Mondadori Editore S.p.A. hereby informs that the notice of call of the Annual General Meeting on 24 April 2018, and the Directors’ reports, pursuant to art. 125-ter of Legislative Decree 58/1998 of the Italian Civil Code, on the following items on the agenda, to be discussed at the ordinary session, are available at the Company’s registered office, at the authorized storage mechanism 1info (www.1info.it), and on the website www.gruppomondadori.it (Governance section):

• authorization for the purchase and sale of treasury shares, pursuant to the combined provisions of articles 2357 and 2357-ter of the Italian Civil Code;
• appointment of the Board of Directors;
• appointment of the Board of Statutory Auditors;
• resolutions, pursuant to art. 114-bis of the TUF, on the granting of financial instruments.

Also made available, in the above manners, the Information Document on the 2018-2020 Performance Share Plan, prepared in accordance with Annex 3A, under the provisions of art. 84-bis of the Issuer Regulation.

The notice of call of the AGM was published today also in the newspaper indicated in the notice.

The additional documents regarding the AGM will be made available, in the manners above, within the time limits established by current laws

Today, the meeting of the Board of Directors of Arnoldo Mondadori Editore S.p.A., chaired by Marina Berlusconi, reviewed and approved the draft Parent Company and Group consolidated financial statements at 31 December 2017[1] presented by CEO Ernesto Mauri.

2017 HIGHLIGHTS
2017 was a year in which the Mondadori Group consolidated the goals achieved in the preceding three-year period, on the path of strategic redefinition of its activities and of further operating and financial improvement, while continuing to push strongly on efficiency measures consistent with the relevant market trends and strengthening its leadership across all business areas.

The results achieved were in line with the expectations disclosed to the market:

• revenue was basically steady versus 2016 (-0.9% on a pro-forma basis);
• adjusted EBITDA grew by 3% (versus 100 million euro pro-forma in 2016), with margins on revenue of 8.4%, up from 7.8% and with a higher contribution of Books to Group profitability (approximately 70% of total);
• net profit increased by 35% versus 2016;
• cash flow from ordinary operations stood at 7 million euro, producing an approximately 28% reduction in net debt and a debt/adjusted EBITDA ratio of 1.8x (versus 2.4x in 2016).

Additionally, at year end, a new (five-year) loan agreement was concluded for a total of 450 million euro, setting better financial conditions in terms of lower average debt cost and a new duration.

PERFORMANCE AT 31 DECEMBER 2017
In 2017, consolidated net revenue amounted to 1,268.3 million euro, up by 0.4% versus 1,263.3 million euro in 2016, but down by 0.9% versus the pro-forma figure of 2016.

The Group’s areas showed a different revenue pattern: a +10% increase by Books (due also to the different consolidation period), outperforming the relevant markets; an overall 7% drop by Magazines, attributable to the downturn of the circulation and advertising markets.

In 2017, consolidated adjusted EBITDA was up by 6.3% (on a pro-forma basis), reaching 106.3 million euro.

The Books Area contributed approximately 70% to Group EBITDA, with margins on revenue of 14% and a 12% increase on a like-for-like consolidation basis with Rizzoli Libri.

Magazines Italy continued its upswing in profit, with adjusted EBITDA of 15.4 million euro, up by 47.3% versus the prior year.

Magazines France, instead, saw its profit margins drop from 10% to 8.5%, managing to only partly alleviate the effects of the sharp decline of the markets.

EBITDA, on a pro-forma basis, grew for the fourth consecutive year, increasing margins to reach 8.4% of consolidated revenue, a growth that confirms the improvement in operating efficiency, benefiting also from the integration synergies of the companies acquired in 2016.

On a like-for-like consolidation scope, the impact on revenue of the cost of goods sold, variable costs and structural costs, decreased as a result of the ongoing cost-curbing measures adopted across all business areas; even stronger benefits came from the cost of personnel, which amounted to 3.7% versus the prior year (approximately -2% on a like-for-like basis[2]).

Employees at 31 December 2017 were 3,026, down by 7.2% versus 31 December 2016 (approximately -4% on a like-for-like basis), as a result of the ongoing reorganization process implemented both in Italy and in France.

EBITDA grew by 7.5% to reach 101.1 million euro from 94 million euro in 2016 (+16.8% on a pro-forma basis). 2017 benefited from net positive not ordinary items of 8.3 million euro related to the gains from the disposal of certain assets in the second quarter of the year, while recording restructuring costs of 12.3 million euro.

Consolidated EBIT in the year amounted to 61.5 million euro, improving by approximately 2% versus 60 million euro in 2016, as a result of the abovementioned increased EBITDA, despite the increase in amortization, depreciation and impairment.

Consolidated profit before tax came to a positive 47.5 million euro, up by approximately 12% versus 42.3 million euro in 2016; financial costs in 2017 amounted to 14 million euro versus 17 million euro in 2016, down by 21% as a result of the reduction in the average interest rate of over 60 bps and of a lower average net debt.

Overall tax costs in the period under review amounted to 14.3 million euro, down versus 18 million euro in 2016, benefiting from the positive adjustment of deferred tax of Mondadori France of 6.3 million euro.

Group profit at 31 December 2017 amounted to 30.4 million euro, up by 35% versus 22.5 million euro in 2016.

The Group’s net financial position at 31 December 2017 stood at -189.2 million euro, down by approximately 28% versus -263.6 million euro at 31 December 2016, as a result of the Group’s positive cash generation from ordinary operations of 68.7 million euro.

Not ordinary cash flow came to a positive 5.6 million euro, and includes disposals of 12.6 million euro, restructuring costs of approximately 14 million euro, and cash-ins from prior-years’ tax of 6.8 million euro.

CONSOLIDATED FINANCIAL HIGHLIGHTS IN 4Q17

Consolidated revenue in 4Q17 amounted to 343.5 million euro, up by 4.7% versus 328.1 million euro in 4Q16, driven by the growth of Books; Retail too posted a positive 4Q17, with revenue from the Book product rising by +8.2%, thanks to the market performance (sell-out of the bestseller titles published in the third quarter) of Books (+11.9%). Magazines continued the downward revenue trend, in line with the relevant markets, but with a more modest decline in Italy, thanks to the over 10% growth in the digital revenue of the properties.

Adjusted EBITDA fell slightly in the last quarter of the year, closing at 31.1 million euro versus 32.3 million Euro in 4Q16, due mainly to the Books Area, as a result of the benefits in 4Q16 from the adjustment of the provision for bad debts (approximately 3.5 million euro) regarding the positions of a number of clients whose receivables had been cashed in, and to an adverse product mix of revenue. The Magazines areas, instead, reported a strong upswing in Italy, which more than offset the downward trend seen in France.

Consolidated EBITDA amounted to 21.8 million euro, down versus 23.8 million euro in 4Q16, as a result also of extraordinary/restructuring costs incurred by Magazines France in 4Q16, which include the remediation costs for the current offices, allocated on an accrual basis in 2017.

Amortization, depreciation and impairment increased versus 4Q16, as a result mainly of the write-down of 2.9 million euro of the investment in the associate publisher of Il Giornale.

Financial costs, as in prior quarters, benefited from lower debt costs and lower average debt versus the prior year.

The weight of tax in the last quarter was affected by the impact of the write-downs of non-fiscally deductible investments.

Accordingly, the net result came to -0.8 million euro (versus +4.7 million in 4Q16).

OUTLOOK

The Group will continue on the path of strategic repositioning and focus on its core businesses, specifically on consolidating its leadership in the Books Area, on developing the digital area of Magazines Italy, and on expanding the franchised channel in the Retail Area.

In line with the above strategy and in light of the current relevant context, the plan sets operational targets which, based on the current scope, allow the Group to estimate a slight decrease in consolidated revenue in 2018 and a basically steady adjusted EBITDA versus 2017.

Net profit for the year 2018 is expected to drop versus the prior year, which had included non-recurring positive items of approximately 7 million euro (net of tax).

Cash flow from ordinary operations in 2018 is forecast at around 50 million euro.

On a like-for-like basis, forecasts for 2019 indicate the same trend in revenue seen in 2018, a growth in adjusted EBITDA to reach approximately 110 million euro, a net profit above 30 million euro, ordinary cash flow above 50 million euro, and a net financial position lower than -150 million euro (with a net debt/adjusted EBITDA ratio of approximately 1.3x).
The forecast for 2019 updates the estimates disclosed to the market on the approval of the 2016 results.
Due to the sharp reduction in net debt and to the expected cash flows, the Group is well-positioned to consider development opportunities in its core strategic businesses, also through external growth.

PERFORMANCE OF BUSINESS AREAS

• BOOKS

In the trade books market, which grew by 5.4% in 2017 versus 2016, the Mondadori Group retained its leadership position with a 28.7%[3] market share, and with 8 of its books appearing in the top 10 bestselling titles of the year (in terms of value): Origin, by Dan Brown (Mondadori); Storie della buonanotte per bambine ribelli, by Francesca Cavallo and Elena Favilli (Mondadori); La colonna di Fuoco, by Ken Follett (Mondadori); Quando tutto inizia, by Fabio Volo (Mondadori); Le otto montagne, by Paolo Cognetti (Einaudi), winner of the 2017 Strega Prize; L’arte di essere fragili, by Alessandro D’Avenia (Mondadori); Dentro l’acqua, by Paula Hawkins (Piemme); L’arminuta, by Donatella Di Pietrantonio (Einaudi), winner of the Campiello Prize.

Additionally in the year under review, the 2017 Nobel Prize in Literature went to Kazuo Ishiguro, whose works are translated and published in Italy by Einaudi.

In 2017, the Mondadori Group also retained its leadership position in the school textbooks market, with a 23.7% share, adoptions-wise.[4]

Revenue from the Books Area amounted to 523.9 million euro, up by 10.3% versus 475.1 million euro in 2016, due also to the different consolidation period of Rizzoli Libri versus the prior year.

All areas grew: +12.3% Trade, due also to the effects of the different consolidation scope versus 2016 and to the publication of a number of bestsellers in the second half of the year; +10.4% Educational, which did not include the first quarter of Rizzoli Libri in 2016 and as a result of the good performance of school textbooks and Mondadori Electa (+16.8%); +2.2% distribution activities.

Adjusted EBITDA of the Books Area amounted to 74.3 million euro which, on a like-for-like consolidation basis with Rizzoli Libri, would be up by approximately 12% versus 2016, despite a more negative contribution from the associate Mach2 Libri in 2017 (down by -1.8 million euro versus 2016).

2017 saw efforts continue on implementing the management policy focused on a targeted editorial planning in the Trade segment and on the ongoing optimization of operating processes, which allowed the Group to keep profitability above 14%.

The Area’s EBITDA amounted to 74.5 million euro, up by 3% versus 72.3 million euro in 2016, which included certain non-recurring charges amounting to approximately 2.3 million euro from the acquisition of Rizzoli Libri.

• RETAIL

In the Retail Area, the Group continued to implement its strategy to align the organization and all the sales channels to the developments of the market; the Books segment continued to grow in 2017, with actions aimed at gradually reviewing the network and the sales proposition: in Books (80% of store revenue), the Mondadori Retail market share stood at 15%[5], up versus 14.9% in 2016.

In 2017, the Retail Area achieved revenue of 198.5 million euro, basically in line (-0.5%) with 199.6 million euro reported in the prior year, despite the upward trend of the Book product, offset by the targeted reduction in revenue from consumer electronics products implemented from the first half of the year.

In the fourth quarter, revenue grew by 2% versus the prior year, driven by the promotional activities launched, with a sharp increase by 8.2% reported by Books.

The analysis by channel shows the following:

• a 1.3% increase by directly-managed bookstores (+2.5% on a like-for-like basis in terms of stores);
• the positive trend (+0.9%) of franchised bookstores (-1.5% on a like-for-like basis in terms of stores);
• the drop by Megastores (-8.3%), due to the shrinking sales in consumer electronics and to the closure of the store in Palermo; Books performed well (+1.2%);
• an over 36% increase in the online segment, driven by the positive performance of sales related to the government’s “Culture Bonus” for 18 year olds (“18app”);
• a lower drop by the Bookclub than in prior years.

In 2017, Mondadori Retail achieved adjusted EBITDA of 0.7 million euro, deteriorating versus 1.8 million euro in 2016, as a result of the temporary decline in margins from the franchised channel, affected by a number of promotional campaigns whose benefits are expected to be felt starting from next year, of the structural decline in sales volumes in the book club channel, and of the costs associated with the targeted reduction in the sales of consumer electronics products.

EBITDA stood at 0.6 million euro (1.4 million euro in 2016) and includes higher restructuring costs (1.5 million euro) and a number of not recurrent positive items (including key money from the closure of two stores).

• MAGAZINES ITALY

In 2017, Magazines Italy’s revenue amounted to 290.7 million, down by 6.4% versus 310.6 million euro in 2016.

Specifically:

• Circulation revenue (newsstands + subscriptions) lost 4.2%, but outperformed the relevant market[6], thanks mainly to the performance of the TV magazine Tv Sorrisi e Canzoni and to the launch of the magazines GialloZafferano and Spy

The Mondadori Group retained its market leadership position in the period, with a share, in terms of value, increasing to 31.8%, up versus 30.8% in 2016.

• total advertising revenue (print + web) grew by 1.8%; gross advertising sales in Italy increased by 7.5% versus 2016, driven by the contribution of Banzai Media activities: the trend of print advertising sales, on a like-for-like basis of titles and barter deals for goods, was basically in line (-5.8%) with the relevant market[7], while digital revenue grew by 27%, accounting for 27% of the total;
• revenue from add-on products dropped sharply (-24.4%) versus 2016, in line with the market trend throughout the year[8];
• distribution and revenue towards third publishers dropped by 2.8% versus the prior year, outperforming by far the relevant market trend[9] thanks to the ongoing commitment to developing third-publisher portfolios distributed both in the channel and through subscriptions.

In 2017, Mondadori retained its position as Italy’s top digital publisher, reaching a total unique audience of 16.2 million/month[10], a position corroborated by comScore surveys, which reported in December 2017 an audience of 24.2 million unique users/month.

Digital revenue reached an overall 38 million euro, up by approximately 16% versus the prior year.

Adjusted EBITDA in the Magazines Italy Area improved sharply by 47.3%, rising from 10.5 million euro in 2016 to 15.4 million euro, driven not only by the benefits of the digital business achieved with the combination of Banzai Media’s teams and products, but also by the print activities, which offset the drop triggered by the trend of the markets, with ongoing process optimization actions and containment of editorial and overhead costs.

The Area’s EBITDA improved further, closing at 12.8 million euro (3.6 million euro in 2016), thanks also to lower restructuring costs.

• MAGAZINES FRANCE

In a shrinking market (advertising and circulation-wise), Mondadori France achieved revenue of 297.4 million euro, down by 7.5% (-7% on a like-for-like basis[11]) versus 321.7 million euro in 2016. Specifically:

• circulation revenue (74% of the total) dropped by 4.9%, losing less than the market thanks to the performance of the subscriptions channel.[12] Revenue from the sale of digital copies doubled versus 2016, driven by the new partnerships with the main French telco players, to offer Mondadori France brands to their subscriber base.
• advertising revenue (print+web) dropped by 17.1%. Print advertising revenue (90% of the total) fell by 11.8% versus the prior year, in line with the relevant market trend[13].

Against this backdrop, Mondadori France retained its position as second top player in the magazine advertising market, with its share steady at 11.1% versus the prior year; digital advertising revenue saw a bigger decline versus the prior year, as a result of the discontinuity from the internalization of mobile/video advertising sales.

The digital readers of Mondadori France were over 12.1 million unique users[14], with six brands topping the one million mark of unique users.

Adjusted EBITDA in 2017 came to 26 million euro versus 33.2 million euro in the prior year. The drop is mainly attributable to the downturn in print and digital advertising revenue, affected also by the increase in circulation expenses. Adjusted EBITDA was also affected by the increase in rental costs for the offices (1.4 million euro) and by the deconsolidation of Naturabuy (1.1 million euro).

EBITDA amounted to 18.4 million euro, down from 30.8 million euro in 2016, as a result of higher restructuring costs in 2017 (7.1 million euro versus 2.3 million euro in 2016) from the new voluntary staff departure plan announced in December – whose benefits will be felt in 2018 – and of extraordinary costs for the remediation of the current offices, allocated on an accrual basis in 2017 and amounting to 3.1 million euro, despite the gain of 4.3 million euro from the disposal of NaturaBuy in May 2017 (3.3 million euro net of relating charges).

PERFORMANCE OF ARNOLDO MONDADORI EDITORE S.P.A.
In the current year, given the significant differences between cost and equity of investments as a result of retained earnings, the Board of Directors deemed it appropriate to change the measurement method of investments in subsidiaries and associates.

Following this change in the accounting standard,[15] consolidated and Parent Company equity are now in line and amount to 315.8 million euro at 31 December 2017; the Parent Company income statement shows the same net result as the consolidated side of 30.4 million euro, up versus the figure on a like-for-like basis in 2016 (22.5 million euro).

The Board of Directors of Arnoldo Mondadori Editore S.p.A. has called the Annual General Meeting on Tuesday 24 April 2018 in first call.

PROPOSED RENEWAL OF THE AUTHORIZATION TO PURCHASE AND SELL TREASURY SHARES
Following the expiry of the preceding authorization resolved upon by the Shareholders’ Meeting on 27 April 2017, with the approval of the financial statements at 31 December 2017, the Board of Directors will propose to the next Shareholders’ Meeting the renewal of the authorization to purchase and sell treasury shares with the aim of retaining the applicability of law provisions in the matter of any additional re-purchase plans and, consequently, of seizing any investment and operational opportunities involving treasury shares.

Here below are the main elements of the proposal made by the Board of Directors:

• Motivations

The motivations underlying the request for the authorization to purchase and sell treasury shares refer to the opportunity to attribute to the Board of Directors the power to:

• to use the treasury shares purchased as consideration in the acquisition of interests as part of the Company’s investment policy;
• to use the treasury shares purchased in the exercise of option rights, including conversion rights, deriving from financial instruments issued by the Company, its subsidiaries or third parties, and to use the treasury shares for lending, exchange or transfer transactions or to support extraordinary transactions on the Company’s capital or financing transactions implying the allocation or sale of treasury shares;
• to undertake any investments, directly or through intermediaries, including for the purpose of containing abnormal movements in share prices, stabilizing share trading and prices, supporting the liquidity of the share on the market, in order to foster the regular conduct of trading beyond normal fluctuations related to market performance, without prejudice in any case to compliance with applicable statutory provisions;
• to rely on investment or divestment opportunities, if considered strategic by the Company, also in relation to available liquidity;
• to sell treasury shares as part of share-based incentive plans pursuant to art. 114-bis of the TUF, and of plans for the free allocation of shares to Shareholders.
• Duration

The authorization to purchase treasury shares is requested to last until the approval of the financial statements for the year ending 31 December 2018, while the authorization to sell is requested to last for an unlimited period.

• Maximum number of purchasable treasury shares

The renewed authorization will enable the Company to reach the cap of 10% of its share capital, also considering the shares held directly and indirectly from time to time, in line with the previous authorization.

• Criteria for purchasing treasury shares and indication of the minimum and maximum purchasing cap

Purchases shall be made on regulated markets pursuant to the combined provisions of art. 132 of Legislative Decree no. 58/1998, of art. 5 of Regulation (EU) 596/2014, (ii) of art. 144-bis of the Issuer Regulation, (iii) of the EU and national legislation on market abuse, and (iv) of Accepted Practices.

Specifically, purchases shall be made on regulated markets, according to operating criteria which do not allow the direct combination of the purchase negotiation proposals with pre-determined sale negotiation proposals.

The minimum and maximum purchase price would be determined under the same conditions established by the preceding Shareholders’ Meeting authorizations, i.e. at a minimum unit price not lower than the official Stock Exchange price of the day preceding the purchase transaction, reduced by 20%, and a maximum not higher than the official Stock Exchange price of the day preceding the purchase transaction, increased by 10%.

In terms of daily prices and volumes, the purchase transactions would be completed in compliance with the conditions established in art. 3 of the Delegated Regulation (EU) 2016/1052.

Purchases instrumental in (a) the support to market liquidity and (b) the purchase of treasury shares to build a so-called “treasury shares” portfolio, shall also be made in accordance with the conditions provided by market practices, under the combined provisions of art. 180, par. 1, lett. C) of the TUF and of art. 13 of (EU) Regulation 596/2014.

With regard to the sale of treasury shares, the Board of Directors resolved to propose to the Shareholders’ Meeting to sell the shares in any appropriate manner in the interest of the Company, for purposes which include the sale on regulated markets, the exercise of option rights, including conversion rights, deriving from financial instruments issued by the Company or third parties, support to incentive plans approved by the Shareholders’ Meeting, and as consideration for the acquisition of equity interests as part of the Company’s investment policy.

To date, Arnoldo Mondadori Editore S.p.A. holds a total of no. 920,000 treasury shares, equal to 0.352% of the share capital.

For further information on the proposed authorization for the purchase and sale of treasury shares, reference should be made to the Directors’ Explanatory Report, which will be published within the time limits and in the manner prescribed by current laws and regulations.

PROPOSED ADOPTION OF A 2018-2020 PERFORMANCE SHARE PLAN
The Board resolved, on a proposal from the Remuneration and Appointments Committee, and consistent with the introduction of the performance share plan approved last year for the medium/long-term remuneration of executive directors and key management personnel, to submit to the approval of the Ordinary Shareholders’ Meeting, the adoption of a 2018-2020 Performance Share Plan, in accordance with art. 114-bis of Legislative Decree no. 58 of 24 February 1998, intended for the Chief Executive Officer, the CFO – Executive Director and a number of managers chosen by the Company who have an employment and/or directorship relationship with the Company or with its Subsidiaries on the date of the Granting of the Shares.

With the adoption of the Plan, the Company aims to encourage Management to improve medium to long-term performance, in terms of both industrial performance and growth in the value of the Company.

The Plan envisages the right for beneficiaries to receive a bonus in the form of Company shares, subject to the achievement of specific targets set and measured at the end of the three-year performance period from 2018 to 2020.

These targets are structured to include both shareholder remuneration indicators and management indicators functional to raising the share value, ensuring maximum alignment of Management remuneration and the creation of value for the Company.

For details on the proposed adoption of the 2018-2020 Performance Share Plan, the beneficiaries and the main characteristics of the Regulations of the Plan, reference should be made to the Information Document drawn up by the governing body, pursuant to art. 84-bis and annex 3A of the Issuer Regulation, and to the explanatory report, which will be published within the time limits and in the manner prescribed by current laws and regulations.

CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO LEGISLATIVE DECREE 254/2016
Under Legislative Decree 254/2016, the Board of Directors’ 2017 Report on Operations of the Mondadori Group is also composed of the Consolidated Non-Financial Statement, a qualitative-quantitative description of the non-financial performance of the Company, associated with environmental, social, and staff-related issues, as well as those regarding respect for human rights, and the fight against active and passive corruption, which are relevant given the activities and characteristics of the Company.

The 2017 results, approved on today’s date by the Board of Directors, will be presented by the Mondadori Group Management to the financial community today, 3:30 PM, at the Mondadori Megastore in piazza Duomo, Milan.

The corresponding documentation will be made available on 1Info atwww.1info.it, www.borsaitaliana.it and www.gruppomondadori.it (Investors).

The Executive Manager responsible for the drafting of the corporate accounting documentation – Oddone Pozzi – hereby declares, pursuant to Art. 154 bis, par. 2, of the Finance Consolidation Act, that the accounting documentation contained in this press release corresponds to the Company’s accounting entries, books and results.

CHANGE IN THE 2018 CORPORATE EVENTS CALENDAR
The meeting of the Board of Directors called to approve the Interim Report on Operations at 31 March 2018, previously scheduled on 10 May 2018, has been put back to Tuesday 15 May 2018. The presentation of the results to analysts will be held on the same day.

Annexes (see attached pdf):
Consolidated balance sheet;
Consolidated income statement;
Consolidated income statement – fourth quarter;
Group cash flow;
Arnoldo Mondadori Editore S.p.A. balance sheet;
Arnoldo Mondadori Editore S.p.A. income statement;
Arnoldo Mondadori Editore S.p.A. cash flow statement
Glossary of terms and alternative performance measures used.

[1] 2017 at Group level includes the contribution as from 1 January of  Rizzoli Libri (outside the scope of consolidation in 1Q16) and Banzai Media activities (consolidated as from 1 June 2016 and merged by incorporation into the Parent Company, with accounting effects as from 1 January 2017).
[2] Net of the effects of the outsourcing of logistics activities.
[3] Source GFK, December 2017
[4] Source: AIE, 2017 (adopted sections)
[5] Source GFK, December 2017
[6] -10.6% Internal source Press-di, December 2017
[7] -6.2% Source Nielsen, December 2017
[8] -21.9% Source Nielsen, December 2017
[9] Source ADS, December 2017
[10] Source Audiweb, December 2017
[11] Net of NaturaBuy, sold in May 2017
[12] – 6.1%; Source Kantar Media, January-December 2017
[13] -10.8%; Source Kantar Media, January-December 2017
[14] Source Nielsen, October 2017
[15] The publication of the amendment to IAS 27 (Equity Method in Separate Financial Statements), has, in fact, introduced the option of adopting the equity method for measuring investments in separate financial statements

The Telegatti are back. The award ceremony will take place in Milan in mid October. Tv Sorrisi e Canzoni, the Mondadori Group magazine that is a point of reference for the world of entertainment, made the announcement today during the presentation of a book, published by Sorrisi, entitled Il Telegatto. Storia del premio più amato dalle star (Telegatto, the prize most loved by stars), that took place as part of Tempo di Libri, the international book fair in Milan.

The presentation, which featured Michelle Hunziker, Pippo Baudo and Gerry Scotti, along with Rosanna Mani, editor of the book, and Aldo Vitali, the editor of Tv Sorrisi e Canzoni, was the occasion to share with the public anecdotes and curiosities form the past of a prize that has been much sought after by the stars of television.

“We are delighted and very excited to be bringing the Telegatti back after ten years,” declared Aldo Vitali, the editor of Tv Sorrisi e Canzoni. “Our readers wanted it, the stars wanted it and so we can finally reveal that the much-loved event will be back this autumn in Milan with a host of big names. Many things in TV have changed in the last ten years, in our habits and in the audience, which is now much expanded thanks to the web and social media. Naturally, the 25^th edition of the Telegatti will also take account of this. Over the coming months we will reveal more details about the prize and we invite all our fans to follow us in the forthcoming preparations.”

First launched in 1971, the Telegatti have been an essential part of the history of Italian entertainment. It main characteristic has always been that it is a prize awarded by a public jury, made up of readers of Tv Sorrisi e Canzoni, Italy’s most widely-read weekly. And it is precisely this uniqueness that distinguishes the Telegatti from all of the other prizes, that are awarded by professionals and experts, and which have made it one of the most sought after prizes by artists from television, music and the cinema.

But while we excitedly await the award ceremony of the Telegatti, Tv Sorrisi e Canzoni has published a book entitled Il Telegatto. Storia del premio più amato delle star, edited by Rosanna Mani. A book of 280 pages full of photographs featuring the most popular personalities and many of the most significant moments in the history of entertainment. From the multi-award winning Mike Bongiorno, Pippo Baudo and Corrado, to the unforgettable Michael Jackson and Luciano Pavarotti and former President of the Italian Republic such as Sandro Pertini. From Hollywood stars of the calibre of Paul Newman, Robert De Niro and Sean Connery, as well as national idols like Fiorello and Vasco Rossi, Laura Pausini and Raffaella Carrà, Gerry Scotti, Roberto Baggio and Valentino Rossi, all of whom proudly have one of the prestigious Italian Made in Italy statues in their home.

The book has been edited by Rosanna Mani, who has been with Tv Sorrisi e Canzoni since 1968 and was the weekly’s co-editor for twenty-five years, as well as being the real prime mover behind the Telegatti and the producer of the shows  La notte dei Telegatti and Vota la Voce. The introduction is by Antonio Dipollina and the book is written by Daniele Soragni.

Il Telegatto. Storia del premio più amato dalle star is available in bookshops from this week at the price of € 29.

For the Telegatti 2018 Tv Sorrisi e Canzoni will work with the Armando Testa agency, that will run the communications campaign and crossmedia operations, and Radio 105, the official radio station for the event. The charity partner for the event is Lega del Filo d’Oro, the association that provides assistance and rehabilitation to people with sensory impairments.

Grazia and Salvatore Ferragamo Parfums have developed a special project to mark the magazine’s 80^th anniversary and the launch of the new fragrance Amo Ferragamo.

Travel, fashion, self-awareness and independence are the passions of contemporary women that Grazia and Salvatore Ferragamo Parfums jointly celebrate by talking about what women love. Because the Mondadori Group brand describes the contemporary world and fashion, talks to women and shares their greatest passions, the same passions to which Ferragamo has dedicated Amo Ferragamo.

The face of the new fragrance and featuring on the cover of this week’s edition of Grazia is Suki Waterhouse, the British model who symbolises the mil­lennials generation. In addition, to enhance this event, Grazia has involved four international influencers – Tatjana Catic, the London-based German fashion, fitness and beauty icon; Kristina Bazan, influencer and artist with over two million followers; Xenia Van Der Woodsen, who travels the world and lives between  Hamburg and Paris; and Marta Lozano, the Spanish socialite and fashion enthusiast, who is also enormously successful on YouTube – who will interpret on social media and other platforms the themes of the Amo Ferragamo campaign.

For this occasion, Grazia and Salvatore Ferragamo Parfums have also organised a special event involving the editor of Grazia Silvia Grilli, the chief executive of Ferragamo Parfums Luciano Bertinelli, the influencers  who are part of the project, as well as a number of personalities from the world of entertainment, including Fabio Volo and Johanna Maggy Hauksdottir, Filippa Lagerback and Daniele Bossari, Camilla Raznovich, and the actresess Giulia Bevilacqua and Benedetta Porcaroli.

For its unmistakeable style, Grazia has become a point of reference for the most dynamic readers and digital communities, as well as the preferred advertising vehicle for companies in the up-scale fashion and cosmetics sectors. These strong points have enabled Grazia to evolve into an international multi-channel print-digital-social-events system with over 20 editions around the world.

Donna Moderna, the Mondadori Group magazine edited by Annalisa Monfreda, on the occasion of its 30^th anniversary, is launching with L’Oréal Paris a female empowerment project: Donne come noi (#donnecomenoi).
Empowerment means giving both power and responsibility to someone. And in this case, it means encouraging women to think big. Donna Moderna aims to do this with an inspiring book, a moving theatrical show and a training programme that provides specific skills.
L’Oréal Paris is accompanying Donna Moderna in this project, much as it is always at women’s sides, by offering the show and training programme for free to Italian women in order to help them to learn to believe in themselves.

The book
Donne come noi (Women Like US) is the title of a book that the editorial team of Donna Moderna has written for Sperling & Kupfer (in bookshops from tomorrow, 6 March, and presented at the Tempo di Libri event at FieraMilanoCity on Thursday 8 March at 5.30 pm).
34 journalists tell 100 stories about contemporary Italian women who, thanks to their determination, skills and courage, have achieved something important. From the boxer Irma Testa to the physicist Fabiola Gianotti, the restorer of The Last Supper Pinin Brambilla Barcilon to the manager of rappers Paola Zukar.  Strong and engaging stories that through struggles and success can inspire women to continue to their evolution in the family, at work and in society in general..
For 10 weeks, from 8 March, some of these stories will be broadcast on R101 in the Isabella Eleodori slot, on Thursdays at 10.30 am.
“Today, there is more than ever a need for stories about women’s conquests and successes; of a gallery of inspirational models. Telling stories has never been more important. And this is the sense behind the book that the editorial team of Donna Moderna have put together to celebrate the magazine’s 30^th anniversary, a magazine that has accompanied the battles and celebrated the progress made by women. As the first edition is published, we are already at work on the second, as we collect stories from our readers, who can send them to us by email at this address: storie.donnecomenoi@mondadori.it», declared the editor, Annalisa Monfreda.

The theatre show
To continue with inspiring stories, Donne come noi is also the name of a theatrical show produced by Donna Moderna, in collaboration with Teatro Franco Parenti, and that will tour Italy from 17 April. From the stage, five actors will play some of the protagonists from the book, as well as the journalists who met them, sisters, friends, teachers. A piano, a cello and an accordion weave through the stories and, in the background, a wall changes colour and is animated by key words. The theatre stimulates the emotions and after an hour and a half, the audience feels a pervasive sense of possibility and the perception that the only limit holds us back from achieving great objectives is the imagination.

The training programme
Team work, time management, reconfiguring your career, thinking outside the box, learning to present yourself: these are just some of the skills that the course, designed and developed by Donna Moderna will provide and that is offered free of charge in a number of Italian towns and cities.

Over the last thirty years, women have conquered professional roles form which they were previously excluded and have redrawn the balance inside the family towards greater equality. But still, in Italy only 48.8% of women work, compared with 66.8% of men. The worst figure in Europe, with the sole exception of Greece.
The aim of this training programme is to contribute to improving this situation by providing participants with the so-called soft skills that are now more important than ever in the selection of candidates. A team of trainers will be supported by a number of corporate professionals who will share their experience and offer guidance.

L’Oréal Paris is our partner in the “Donne Come Noi” project and, in line with the claim “Because you’re worth it”, supports the self confidence of women of all ages, around the world, as there is no single model of beauty.
Every woman has her own idea of being beautiful, an authentic way of  affirming and expressing herself and her values. L’Oréal Paris supports women around the world by encouraging them to see themselves as unlimited, in their realisation of their value and potential and for years has been at the forefront of female empowerment and always focused on gender discrimination and equal opportunities.

To support the initiative, a campaign has been developed across a range of media: print, web and social channels.

“Donne come noi” has been organised in collaboration with Mondadori Store, that will host the training courses and book presentations inside its Bookstores. Here is a list of dates: Genoa 13 March, Turin 14 March, Bologna 22 March, Florence 23 March, Tolentino 24 March, Parma 26 March, Velletri 12 May, Bisceglie 19 May, Salerno 26 May. The addresses and times of the presentations are available at: eventi.mondadoristore.it.

For full details about Donne come noi and to book your place, please go to: www.donnamoderna.com/donne-come-noi (limited availability).