April 2006

1
Gruppo Editoriale LEspresso
April 2006 (2005 results approved by the
Shareholders Meeting)
2
Gruppo Editoriale LEspresso at a glance
Gruppo Editoriale L'Espresso is one of the
leading media groups in Italy with interests in
PUBLISHING, RADIO, TV, INTERNET, ADVERTISING and
DIGITAL RADIO AND TV
MAGAZINE

• Circ. 390,600
• Read. 2,328,000

5 OTHER TITLES

• No. 1 READERSHIP
• 19 MARKET SHARE

CO-LEADER IN NEWSMAGAZINES
CONSOLIDATED RESULT
2005/IFRS
INTERNET
LOCAL NEWSPAPERS
REVENUES
1,080
GROUPS NETWORK WEBSITES
EBITDA
222
16 DAILIES 1 BI-WEEKLY

• Circ. 482,700
• Read. 3,153,000

• 436.7 millions monthly pageviews
• 9.4 millions unique users

NET DEBT

253
RADIO
TELEVISION

• GRUPPO ESPRESSO IS THE ONLY COMPANY WITH A LONG
  LIVED STRATEGY IN THE RADIO SECTOR
• 3 NATL RADIO
• 8.6 MLN DAILY LISTNS.COMB

THE MOST RECENT ACQUISITION ALL MUSIC, A
NATIONAL TV NETWORK AIMED AT A VERY YOUNG PUBLIC
CO-LEADER ADVERTISING REGIE FOR PRINT MEDIA
Sources Audiradio, 1st semester 2006, mobile
(radio) Audipress 2005/II
(readership) Companys Data 2005
(circulation) AC Nielsen/FCP 2005
(advertising) RedSheriff March 2006 (internet)
2
www.gruppoespresso.it
3
Gruppo Editoriale LEspresso - ownership structure
NO. OF

at 26 April 2006
SHARES
Compagnie Industriali Riunite SpA
218,825,235
50.4
Carlo Caracciolo
38,744,720
8.9
Giulia Maria Crespi Mozzoni
9,654,423
2.2
Assicurazioni Generali SpA
8,950,330
2.1
Total number of shares
434,010,788
100.0
Source Companys Data
3
4
Gruppo Editoriale LEspresso - market share and
positioning circulation
ITALIAN NEWSPAPER CIRCULATION AND MARKET SHARE
2005 (AVRG CIRC.)
No. of copies (,000)
Espresso Group 19
Source Fieg Estimate 2005
4
5
Gruppo Editoriale LEspresso - Press add-ons
Add-ons Have Enabled To Increase Revenues....
mn
Source Companys data
....and also to ensure sustainable stream of
revenues

• The sale of products sold optionally with the
  Groups publications met strong success, not only
  in the case of products sold in conjunction with
  la Repubblica and Lespresso, but also those
  distributed with local newspapers.
• In 2005, 45 initiatives were implemented, in
  comparison with 35 in 2004, selling, altogether,
  over 24 millions copies of books, DVDs, etc. In
  the year add-ons registered revenues of 200
  million and a EBITDA margin of over 30.
• At the end of 2005 were launched some new
  optional initiatives LEnciclopedia della Cucina
  Italiana (The Encyclopaedia of Italian Cuisine)
  and La Grande Enciclopedia dei Ragazzi
  (Encyclopaedia for young people), offered with la
  Repubblica, sold 220 and 150 thousand average
  copies per issue respectively, while the volumes
  on the history of philosophy offered with
  Lespresso overcame 80 thousand average copies a
  week.

5
6
Gruppo Editoriale LEspresso - Press add-ons
Leveraging on a strong distribution network to
market high-quality and low-price products

• Publishers margins are strongly correlated to
  the cyclical nature of advertising spending.
  Add-ons have proved functional in reducing such
  cyclicality by generating profits in a time when
  the advertising market is struggling.
• LEspresso was first to spot and exploit the
  opportunity in Italy. The strategy proved so
  successful that today nearly every Italian paper
  sells add-ons.
• In 2004 the number of books sold in conjunction
  with the Italian newspapers and magazines in the
  newsstands reached 70 million copies.

KEY FACTORS FOR LA REPUBBLICA SUCCESSFUL STRATEGY
ON ADD-ONS
Distribution Network. Newspapers can count on a
network of around 40,000 newsstands in Italy.
Book publishers' reach is much more limited
Low Price. Newspaper publishers can count on much
larger circulation and sales and can therefore
apply much lower cover prices
Marketing. Newspaper's culture section
prominently features reviews and articles on a
book/author in conjunction with the release of
the latest book of the series
Target and Readership. la Repubblica can count
almost 3 million daily readers and some 5.5
million weekly readers. Its readers are
represented by more than average educated and
more than average culturally evolved people a
population that can be reached and interested by
cultural proposals
High Quality. Every initiative enjoys very high
quality both in terms of image and content
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7
Gruppo Editoriale LEspresso - market share and
positioning advertising
The Italian advertising market is expected to
grow in 2006-2008 with a CAGR of 2.7 versus an
average 4.4 in Europe
TOTAL ADVERTISING EXPENDITURE/GDP
European Average 0.79
Source Zenith, Year 2004
ITALIAN ADVERTISING MARKET AND LESPRESSO GROUPS
SHARE 2005

• LEspresso Group, through its subsidiary Manzoni,
  sells advertising space for Gruppo LEspressos
  newspaper and magazine titles and for its radio
  and television stations and internet sites
• Manzoni also generates a small amount of revenues
  through selling advertising on behalf of
  third-party media

LEspresso Group Share 21.7
LEspresso Group Share 17.9
Sources AC Nielsen / FCP 2005 (for Newspaper and
Magazines)
7
8
Market Overview advertising revenues
BREAKDOWN OF ITALIAN ADVERTISING MARKET
Source AC Nielsen 2005 FCP 2005 (1) Including
Radio Montecarlo, which was not included in prior
years (2) Including Radio Italia Network, Radio
Kiss Kiss and Radio LatteMiele, which were not
included in prior years (3) Including Radio
Capital, One-O-One Network and Radio 24, which
were not included in prior years
8
9
Gruppo Editoriale LEspresso - contribution to
year 2005 consolidated results
REVENUES SPLIT
EBITDA SPLIT
EBITDA MARGINS
Source Companys Data
9
10
Gruppo Editoriale LEspresso - corporate
governance

• The Group has in place a corporate governance
  system which is in line with the new guidelines
  established by the Self Discipline Code for
  Companies Listed on the Italian Stock Exchange
  (Borsa Italiana), as amended in July 2002
• Under the same Code, the Group has determined a
  composition of its Board of Directors consistent
  with the independent director criteria there
  established
• Internal auditing is conducted exclusively by
  independent members
• Rules of conduct for transactions involving
  related parties have been established
• A Code of Conduct regulating the flow of
  information on transactions involving the Gruppo
  Editoriale LEspressos shares by key persons
  has been adopted

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Gruppo Editoriale LEspresso
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Gruppo Editoriale LEspresso - la Repubblica
CONTRIBUTION TO RESULTS (IFRS)
2,958,000
DAILY READERS
OVER 33
ARE UNDER 34
YEARS OLD
THE MAJORITY OF READERS
CONSISTS OF
COLLEGE AND UNIVERSITY
Source Companys Data
GRADUATES
MEMBERS OF UPPER
THE ONLY NEWSPAPER READ THROUGHOUT ITALY
MAJOR NEWSPAPERS SOLD IN ITALY
SOCIO-ECONOMIC CLASSES
HIGH RANKING
PROFESSIONALS
CORRIERE DELLA SERA
OVER 37OF READERS
NW 24
54 NW
ARE ALSO DECISION MAKERS
IN PURCHASES
NE 24
18 NE
SUPPLEMENTS
C 28
12 C
- Il Venerdi (family, tv programming)
- AffariFinanza (business and finance)
- Salute (health)
S 24
16 S
- D (Womens supplement)

• XL (music lifestyle monthly
• for young people)

- Viaggi (travel)
Source Audipress 2005/II
Source FIEG Estimate 2005 Audipress 2005/II
Source Audipress 2005/II
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13
Gruppo Editoriale LEspresso - la Repubblica a
system
13
14
Gruppo Editoriale LEspresso - Local newspapers
LOCAL NEWSPAPERS
Il Piccolo
La Provincia Pavese
Messaggero Veneto
La Nuova Venezia
Alto Adige
Il Mattino di Padova
La Tribuna di Treviso
Corriere delle Alpi
Combined circulation 482,700 3,153,000 readers
per day
La Sentinella
La Gazzetta di Mantova
La Gazzetta di Reggio
La Gazzetta di Modena
Il Tirreno
La Nuova Ferrara
Source Companys data 2005 (Circulation)
Readership Audipress 2005/II
Il Centro
La Città di Salerno
CONTRIBUTION TO RESULTS (IFRS)
La Nuova Sardegna
LOCAL NEWSPAPERS
14
Source Companys Data
15
Gruppo Editoriale LEspresso - Local newspapers
a network at work
15
16
Gruppo Editoriale LEspresso - Magazines
CONTRIBUTION TO RESULTS (IFRS)
MAGAZINES
Source Companys Data
2,328,000
Circulation 390,600
READERS PER ISSUE
34
ARE UNDER 34
YEARS OLD
OVER
45
ARE FROM
UPPER SOCIO-ECONOMIC
CLASSES
OVER
66
ARE COLLEGE
AND UNIVERSITY
GRADUATES
Source Audipress 2005/II
Source Companys data 2005
16
17
Radio Division Overview Business
MARKET OVERVIEW MAIN PRIVATE RADIO STATIONS

• Age-group target young people
• 5.6 mln daily listeners
• Over 70 are under 34 years old
• Near 30 are students

• Age-group target 24 40 years old
• 2.0 mln daily listeners
• Near 56 are 24-44 years old
• Over 70 are employees

• Age-group target teenagers
• 0.9 mln daily listeners
• Over 70 are under 24 years old

Source Audiradio, 1st semester 2006, mobile
Source Audiradio, 1st semester 2006, mobile
NATIONAL RADIO CONTRIBUTION TO RESULT (IFRS)
17
Source Companys data
18
Gruppo Editoriale LEspresso All Music
GROUP INTERNET SITES
leading site for news in Italy, registering an
average audience of 6,122,981 monthly unique
users on March 2006 (Red Sheriff Company) 

• In December 2005 the Groups site network
  recorded
• 9.4 million unique users
• 436.7 million page views

a web portal featuring channels including
financial news and stock quotes, weather, maps,
telephone directory and job search and recruiting
the best known site for young people
CONTRIBUTION TO RESULTS (IFRS)
KATAWEB
Content Division
18
Source Companys data
19
Gruppo Editoriale LEspresso All Music
Target of people 15 - 35 years old
Viewers (,000) Weekly Daily Canale 5
12,851,151 10,044,578 Italia 1 12,260,293 8,567,4
34 Rete 4 6,204,003 2,954,288 Rai
1 11,521,721 7,828,862 Rai 2 10,487,720 6,499,433
Rai 3 8,567,434 4,726,860 MTV 8,124,290 4,726,860
All Music 5,170,003 2,658,859 La
7 5,022,288 2,215,716 7 Gold 1,772,572 590,858 Dee
jay TV 1,477,143 738,572 Canale
Italia 738,571 147,714 Odeon 590,857 147,714 Altre
emittenti terrestri 1,181,715 738,572 Altre
emittenti satellitari 2,068,001 1,477,144
According to Ipsos research, All Music is the
network with the highest increase in audience in
the last year, when, according to an Audistar
survey, viewers had been 760 thousand (250 of
increase). All Music audience gathers in
North-West areas and in centre Italy, it is
mostly male, it has a medium-high income and by a
third it has been watching the channel since less
than one year.
Source Ipsos 2006
CONTRIBUTION TO RESULTS (IFRS)
Pro-forma results refered to 9 months
(April-December)
19
Source Companys data
20
Gruppo Editoriale LEpresso strategy - highlights
LEspresso Groups strategy is to strengthen
its position as a leader among Italian media
companies, to maintain a strong market position
in national and local daily newspapers, news
magazines, commercial radio, and the internet and
to develop its new television business

• THROUGH
• a medium-term strategy of organic growth
• Reinforce competitive advantages through
  investment in higher margin businesses (color
  printing)
• Capitalize fully on market leadership in Italy,
  also through brand extensions
• strengthen and diversify its business by
  exploring opportunities in segments where the
  Group can leverage its existing expertise and
  strengths
• Successful niche magazines
• Local newspapers (in Italy)
• pursuit of multichannel strategy through
• Investments in radio and television digital
  broadcasting in order to distribute editorial
  contents to any platform
• Development of new products/markets for
  television, radio and internet (Value Added
  Services)
• Development of digital radio stations (e.g.
  RadioTVRepubblica) and/or satellite ones.

Each opportunity is considered only if within
LEspresso Groups financial targets
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Gruppo Editoriale LEspresso strategy - press
COLOR PRINTING FACILITIES
PRESS

• Maintain the leading market position and the
  editorial quality of la Repubblica newspaper also
  through the significant expansion of la
  Repubblicas colour printing capacity by
  investing in new generation, high technology,
  labour saving printing presses in order to
  attract additional higher-margin colour
  advertising
• Consolidate and develop the Groups add-ons sales
  (books, Dvds, CDs, ...) into a sustainable new
  product line, based on brand-extension of all
  groups titles
• Maintain a leadership position in the
  newsmagazine publishing market with Lespresso
  weekly, new titles and repositioning of existing
  ones
• Expand the Groups local newspaper business by
  acquisition of further titles and increase their
  profitability by enhancing their colour
  advertising capacities

• Timing
• The investment relevant to the full color has
  been completed in November 2004. La Repubblica
  has since been in the position to print up to 96
  colour pages
• Benefits
• Fly to quality to the new formats
• Prices for color national display advertising
  higher by 40
• Extension to local advertising

Milano
Padova
Bologna
Mantova
Roma
Livorno
Bari
Sassari
Salerno
Catania
Operational
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Gruppo Editoriale LEspresso strategy - radio and
internet
RADIO
INTERNET

• Maintain the Groups leadership in the Italian
  commercial radio market, enhancing profitability
  principally by increasing advertising revenues
  and brand extension initiatives
• Develop a new fully internet radio station to
  further exploit with no additional investments
  the existing capabilities of the Group to
  elaborate news and editorial contents
• Further develop the Groups satellite television
  business, capitalising on LEspresso Groups name
  recognition and brand awareness by broadcasting
  in areas where the Groups radio brands are
  market leaders

• Focus the Groups Internet operations, after
  significant cost cutting, on
• on-line editorial and publishing activities
  including www.repubblica.it
• Deejay.it and all traditional titles
• new advertising formats
• integrated offerings to customers of web
  solutions together with content and value added
  services

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Gruppo Editoriale LEspresso strategy - TV
ALL MUSIC
TV A NEW BUSINESS

• On April 14, 2005, the Espresso Group has
  finalized the acquisition of the television
  network Rete A All Music, having received all
  the authorizations required by the Competent
  Authorities, and paid the consideration of 115
  million.
• All Music broadcasts through analogue technology
  on the whole national territory and is authorized
  to broadcasting through digital technology. The
  analogue signal network covers almost 80 of the
  Italian population while the digital signal
  covers over 50 of the Italian population.
• Over the last years All Music has conquered a
  remarkable position in the young people target
  developing music programs under its brand, giving
  absolute prominence to programs with the
  interactive participation of the audience.

• With this acquisition, the Espresso Group has
  entered the sector of the analogue and digital
  terrestrial television, to implement a network
  mainly devoted to music addressed to a young
  audience, exploiting the trade marks and the
  know-how of its own radio stations, Radio D.J.,
  Radio Capital e m2o, leaders in Italy in terms of
  audience as well as of advertising revenues.
• The synergies with radio and Internet and the new
  opportunities offered by music, that has
  developed into a means to supply new products
  (for instance ring tones, clothing, technologies)
  open new and interesting potentialities of
  development to music TV.
• After the conclusion of the acquisition, the
  Group made investments in the development of a
  digital terrestrial television broadcasting
  network and the upgrade of the existing analogue
  broadcasting network, while a new corporate
  structure was put in place. The following step
  has been dedicated to the review of the format
  and the strengthening of the image of the
  network, which continues to focus on music and
  programs for a young audience. Since January
  2006, advertising sales are managed by a specific
  sales network within A.ManzoniC., the Groups
  advertising concessionaire

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Adoption of IFRS main effects

• Starting with the Interim Financial Statements at
  June 30, 2005 the Espresso Group adopted
  international financial reporting standard (IFRS)
  in the preparation of its financial statements.
  The Group chose to adopt IFRS also in the
  preparation of the financial statement of the
  parent company and its subsidiaries at the same
  date.
• To allow a like-for-like comparison with figures
  for the previous, the balance sheets at January
  1, 2004, at December 31, 2004 and at January 1,
  2005 were restated under IFRS. Independent
  auditors PricewaterhouseCoopers SpA issued an
  Audit Report certifying the correctness of
  figures reported.
• The adoption of IFRS has had a positive impact on
  the results of the Group. The most relevant one
  is represented by the book value of titles and
  radio and television frequencies, that are no
  longer amortized but subject annually to an
  impairment test. In the opening Balance Sheet at
  January 1, 2004, the historical cost of such
  items was restored and accumulated amortization
  was reversed, resulting in an increase in the
  Shareholders Equity.

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Gruppo Editoriale LEspresso - financial
highlights (Year-end)
Strong performance in difficult markets
Financial Highlights
( mn)
2001
2002
2003
2004/IFRS
2000
2005/IFRS
Revenues
923
964
1,051
1,081
1,080
953
Circulation
311
400
483
496
467
297
Advertising
577
528
534
546
586
614
Other
35
36
34
38
28
42
EBITDA
131
181
231
234
222
126
EBIT
74
122
175
192
177
70
Profit before Taxes
50
108
133
175
152
190
Net Profit
1
46
68
99
116
129
Net Debt
(111)
(63)
(150)
(143)
(253)
(61)
Capital Employed
515
474
491
638
813
508
Shareholders' Equity
392
402
332
484
550
431
15
Minority interests
11
10
10
11
11
Dividends
(40)
(37)
(141)
(47)
(56)
(33)
Capex
67
45
71
94
64
78
Ratios
EBITDA margin
14.2
18.8
22.0
21.7
20.6
13.2
EBIT margin
8.0
12.7
16.7
17.8
7.3
16.4
Net Debt/EBITDA

0.9x


0.3x


0.6x



0.5x
0.6x
1.1x
ROCE
14.3
25.8
35.6
13.8
30.1
21.8
EPS
0.00
0.11
0.16
0.23
0.30
0.27
Dividend per share
0.08
0.10
0.34
0.09
0.13
0.145
NET Debt/Shareholders' Equity
28.4
15.7
45.0
29.6
45.9
14.2
Including 0,23 of extraordinary dividend
25
Source Companys data Italian Accounting
Principles (when not specified)
26
Gruppo Editoriale LEspresso - financial
highlights (First quarter)
Strong performance in difficult markets
Financial Highlights
( mn)
1st Q 2005/IFRS
1st Q 2006/IFRS
Revenues
277
303
Circulation
142
159
Advertising
127
138
Other
8
7
EBITDA
61
62
EBIT
50
52
Profit before Taxes
45
47
Net Profit
22
27
Net Debt
(84)
(173)
Capital Employed
602
762
Shareholders' Equity
507
578
Minority interests
11
11
Capex
12
10
Ratios
EBITDA margin
22.0
20.5
EBIT margin
18.2
17.1
Net Debt/EBITDA

1.4x
2.8x
ROCE
8.4
6.8
NET Debt/Shareholders' Equity
16.5
30.0
Source Companys data
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Gruppo Editoriale LEspresso - credit rating
Standard Poors assigned a long term rating of
BBB- with a positive outlook to Gruppo Editoriale
LEpresso

• Rating published on 30th September 2004
• Sustainability of current profit base and high
  returns on investment are the conditions for the
  upgrade
• Consistent dividend policy
• Ordinary policy is expected to remain in line
  with the past years (avrg. Payout ratio 80)
• Extraordinary dividends would be considered only
  if consistent with an efficient capital structure
• LEspresso Groups management is committed to
  retain a financial policy that is in line with an
  investment grade rating within the following
  ratios
• Net Debt to EBITDA of maximum 2.5x
• FFO to Net Debt of minimum 25

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Milestones in Gruppo Editoriale LEspresso history
1955-1992
1993-1999
2000-2005
1955 Nuove Edizioni Romane starts publishing
L'espresso magazine 1956 Carlo Caracciolo
acquires a majority stake in NER 1975 The
publishing company changes its corporate title to
Editoriale LEspresso 1976-79 In 1976 la
Repubblica daily newspaper begins to be published
with Arnoldo Mondadori Editore 1977-80 Editoriale
LEspresso acquires several italian local
newspaper (Il Tirreno, Il Mattino di Padova, La
Nuova Sardegna) and a 50 share of the
advertising company A.ManzoniC. 1984 Editoriale
LEspresso SpA is listed on the italian stock
exchange. The local newspaper La Nuova Venezia is
founded. Incorporation of Finegil, a holding
company controlling the various local
newspaper 1985-89 The local daily Il Centro is
launched. La Repubblicas supplements
AffariFinanza and Il Venerdì started.
Acquisition of 50 of Radio Deejay (1989) 1989
Arnoldo Mondadori Editore takes a controlling
share in Editoriale LEspresso 1991 Break-up of
Mondadoris assets leading to the creation of the
Espresso Group in its current form, with the CIR
Group as majority shareholder 1992 Acquisition of
the entire capital stock of A.ManzoniC.. The
shareholding in Radio Deejay is increased to 86
1993 Reorganization in printing plant and
videopaginations technologies are implemented in
Rome facilities with big savings on labour costs.
Launch of the first multimedia products 1994 The
monday edition of la Repubblica is released on 10
January with no additional personnel 1995 La
Repubblica launches the supplements Musica and
Salute and introduces colour printing technology
for the front page and adverts 1996 La
Repubblica presents D-la Repubblica delle Donne
and launched the website www.repubblica.it .
Eugenio Scalfari, founder of la Repubblica,
relinquishes the editorship in favour of Ezio
Mauro 1997 Launch of la Repubblicas weekly
supplement Viaggi. Acquisition of Radio Capital
and Italia Radio, total control of Radio Deejay,
and of La Città 1998 Merger between Editoriale
LEspresso SpA and Editoriale La Repubblica SpA
into Gruppo Editoriale LEspresso SpA. Majority
shareholding acquired in the publishing company
controlling the local titles Il Piccolo and Il
Messaggero Veneto. Italian edition of National
Geographic starts. The three broadcasting
companies are merged into a single organization
named Elemedia SpA 1999 Kataweb, the Groups
Internet Company, is created
2000 A strategic agreement is signed between
Unicredito Group and Kataweb, providing the
banking group entrance in the company capital of
the Espresso Internet Company with a 5 share.
EleTV is founded for the realization and
development of the satellite Television channel
branded DeejayTV 2001 The Group intervenes in the
internet sector, by closing all the activities
abroad, defocusing from e-commerce progressively,
focusing its effort on the development of
contents, services on Groups websites and the
offerings of web-solution 2002 Exploitation of
the strength and the credibility of la Repubblica
and Lespresso brands. Acquisition of two radio
stations in Eastern Europe 2003 Acquisition of
the 5 share of Kataweb SpA which had been
underwritten by Gruppo Unicredito 2004 The full
colour investment of la Repubblica was finalized.
At the end of the year, an important agreement
was reached for the purchase of All Music, the
national television network addressed to young
people. All the Roman premises of the Group moved
into a new headquarter. 2005 In April, the Group
has finalized the acquisition of the television
broadcasting network All Music, having received
all the authorizations required by the competent
Authorities.
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