2013

The Board of Directors of Arnoldo Mondadori Editore S.p.A., chaired by Marina Berlusconi, met on today’s date to examine and approve the consolidated financial statements and the parent company financial statements as at December 31, 2012. Following to Maurizio Costa’s resignations from the post of Vice-President and CEO – as already disclosed to the market on last February 28 – the Board of Directors coopted Ernesto Mauri, appointing him CEO.

“Mr. Mauri has a complex but clear mission: giving further thrust to reorganize and improve our activities, and introduce strong elements of innovation and change”, said the President Marina Berlusconi. “In the name of the entire Board, I extend to him my best wishes to continue the excellent job he has accomplished so far within Mondadori at the highest level of responsibility”, she concluded.

THE MARKET SCENARIO

As we know, global economy and, in particular, the economy in the euro zone, continued to worsen also in the second half of 2012.

In Italy GDP posted a further drop (-2.4%) on an annual basis, unprecedented in the last twenty years. Also the unemployment rate, which rose from 8.4% to 10.7% in just one year, hit a peak since 1993, while consumer spending decreased by 3.8%.

In France, where the economic situation seems less difficult though also showing a rising unemployment rate (from 9.4% in 2011 to 10.2%) and consumer spending and GDP equal to zero growth, the values of Mondadori activities in the markets of reference proved less negative.

GROUP PERFORMANCE FOR THE YEAR ENDED AT DECEMBER 31, 2012

The Mondadori Group closed 2012 with a 6% reduction in revenues and EBITDA 49% lower than in the previous year; impairment on assets equaled euro 194.3 million, thus showing a negative result in the income statement at euro -167.3 million, which net of impairment would have instead been positive for euro 12 million.

Net consolidated revenues amounted to euro 1,416.1 million, down 6% against euro 1,507.2 million of 2011. Net of the consolidation of the EMAS joint venture (Editions Mondadori Axel Springer S.n.c.) in Mondadori France, the revenue reduction would have been equal to 8.6%.
Consolidated EBITDA amounted to euro 66.5 million, down 49% against euro 130.4 million of the previous year.
Excluding non-recurring items and restructuring costs, the reduction in EBITDA would have been equal to 38.9%.

Consolidated EBIT was negative for euro 151.6 million (against euro +103.8 million in 2011) after impairments for euro 194.3 million, mainly attributable to the goodwill of Mondadori France (euro 140 million) and the R101 radio station (euro 46.3 million). Amortizations and depreciations for the year totaled euro 25.1 million (euro 23.3 million in 2011).

Consolidated pre-tax profit was equal to euro -173.8 million, (euro 82.7 million in 2011) with financial charges amounting to euro 22.2 million (euro 20.5 million in 2011).

Consolidated net profit was negative at euro -167.3 million against euro + 49.6 million in 2011; net of impairments, 2012 would have closed with a consolidated net profit equal to euro 12 million.

As for balance sheet items, consolidated net equity equaled euro 433.8 million against euro 608.9 million of the previous year; the Group’s net financial position posted euro -267.6 million, up euro 67.8 million against 2011 also as a result of the transfer, completed in November, of the 50% interest owned in Random House Mondandori to Bertelsmann for a price equal to euro 54.5 million.

Information on personnel

At December 31, 2012 the Group employees with a permanent or temporary employment contract amounted to 3,703 people and the cost of personnel amounted to euro 290.4 million.

On a like for like basis, that is, net of the integral consolidation of the French joint venture Editions Mondadori Axel Springer S.n.c., personnel values dropped by 1.3%.

In fact, the final cost of personnel takes into account the already mentioned transaction with Emas, the merger into Arnoldo Mondadori Editore S.p.A. of the former joint-venture Mondadori Rodale, and a higher fund allocation for the restructuring started in the year of reference and is lower than 1.4%.

In addition to the ongoing rationalization and efficiency actions constantly implemented since 2009 in all Group companies, the results obtained are mainly attributable to specific re-organization actions started in the Direct area and, specifically, to the approval of a new restructuring plan that is expected to be completed by April 2014 for 152 redundant graphic-publishing workers belonging to Arnoldo Mondadori Editore S.p.A., Mondadori Pubblicità S.p.A. and Press-Di Distribuzione Stampa e Multimedia S.r.l..

Since, for bureaucratic reasons, they were implemented only in the second half of the year, these actions had only a limited economic and quantitative impact on the financial year of reference.

These efficiency actions have been combined with company development and rationalization actions aimed at favoring the Group’s growth strategy, with a view to enhancing the Group’s presence in the digital segment and internationally. In this respect, the establishment of Mondadori International Business S.r.l. is particularly relevant.

In the Direct area, where a rationalization process was started long ago on all points of sale, a negotiation table was opened last December 2012 for the definition of job security agreements for the employees of the offices of Mondadori Direct S.p.A. in Milan, Brescia and Rimini, for a total of 239 people. A similar job security agreement was reached for Mondadori Iniziative Editoriali S.p.A..

For Cemit Interactive Media S.p.A., an agreement was reached to reduce the number of jobs through redundancy payments and mobility.

In addition, it should be noted that in December 2012, also in Arnoldo Mondadori Editore S.p.A. Magazines area, negotiations were opened with the trade unions representing the journalists, for the purpose of examining the consequences of the shutting down of five magazines and the re-organization of the publisher’s remaining editorial staff. Negotiations are still underway.

RESULTS BY BUSINESS AREA

· BOOKS

In 2012 the trade book market decreased both in terms of copies (-6.9%) and value (-7.8%) against 2011 (source Nielsen) with a lower improvement than expected in the last month of the year. This reduction hit all the channels cross-sectionally: bookstores, hypermarkets and e-commerce.

In this context, the Mondadori Group increased its market share in terms of value (27.6%), confirming its leadership in the trade book segment.

In 2012 revenues from the Mondadori Books segment amounted to euro 370.6 million, down 4.8% against euro 389.1 million in the previous year.

Among the Group’s trade book publishers, in 2012 Edizioni Mondadori increased its market share in terms of value (14.1% against 13.3% in 2011), thanks to the excellent performance of a few publications: four titles ranked among the ten best sellers in 2012 and 43 were in the top 100.

Particularly important to Mondadori was the increase in foreign fiction, with the erotic trilogy by E.L. James, Cinquanta sfumature di grigio, Cinquanta sfumature di nero and Cinquanta sfumature di rosso, which exceeded 3,300,000 copies sold in Italy and 130,000 e-book downloads, the first, third and fourth, respectively, in the best seller lists for the year.

Mondadori also won the most prestigious Italian literary prizes, including the Strega Prize in July 2012 with Inseparabili by Alessandro Piperno, and the Campiello Prize, in September 2012, with La collina del vento by Carmine Abate.

Ken Follett’s new book, L’inverno del mondo, posted an excellent performance, coming in sixth in the 2012 general ranking, with over 300,000 copies sold and over 40,000 e-book downloads, as did the long-awaited second book by Paolo Giordano, Il corpo umano, printed in 300,000 copies.

In the educational segment, in 2012 Mondadori maintained a significant position in the school text book segment with a 12.8% market share.

During the year of reference Mondadori Education made massive investments: from a publishing perspective to update text books, and from a technological standpoint to produce books in digital format.

E-Book
Mondadori is market leader in the e-book segment with a market share of approximately 40%. In 2012 1.2 million books of the Group’s trade publishers were downloaded, with a 2% incidence on the net revenues of the hard copy product.

Among the most successful e-books, included in a catalogue of 4,000 titles in total, in addition to the trilogy Cinquanta sfumature, the following are worth noting: L’inverno del mondo by Ken Follett, La Dieta Dukan by Pierre Dukan, Steve Jobs by Walter Isaacson, 1Q84 by Haruki Murakami, the Hunger Games trilogy and the first book of the Diabolik series.

In relation to store performance, we should not overlook the sales results achieved by the Kobo platform in just a few months from its launch in the Italian market at the beginning of the last quarter of 2012.

· MAGAZINES ITALY
In an extremely dire economic scenario (the market is showing a 13.6% drop in value on a like for like basis), Mondadori magazines in 2012 posted revenues equal to euro 383.9 million in Italy, down 16.3% against euro 458.8 million of the previous year.

This result does not only reflect the negative economic performance, but also the effects of the structural changes that the segment of periodic publications has gone through in recent years, mainly linked to the evolution of the digital media and the different use of information and content, especially by the younger target.

Investments in advertising, decreasing in all channels with the exception of Internet (+5.3%), posted heavier reductions in printed magazines and papers (-17.6% for newspapers, -18.4% magazines), despite the introduction of new magazines compared to the previous year (source Nielsen)..

The circulation market was characterized by the launch of low cost products, addressed to a mass target, with relevant effects on the estimated reduction of the overall value of sales of magazines at newsstands (-10.5%, -13.6% compared with an equal number of magazines, internal source).

The results obtained in the Magazines Italy Area show different performances:

• revenues from circulation (-13.5%) were penalized by a significant drop both in the newsstand segment and subscriptions, as well as a lower number of copies sold in on-pack activities;
• revenues from the sales of add-ons, including co-editions, (-18,3%) were penalized by a drop in the sales of home videos, publishing products and gadgets, though still maintaining a good margin and the market leadership (34%);
• revenues from advertising in Mondadori magazines registered a 21.2% decrease despite the ongoing growth of Internet (+37.4%) and international (+17.1%).

International activities

International activities, concentrated since October 31, 2012 in the newly established Mondadori International Business S.r.l., carrying out licensing, syndication and advertising activities.

Licensing: in 2012 the aggregate revenue result generated by Grazia International Network- with over 20 editions all over the world – rose 8% against 2011, with a further possible increase expected in 2013 following the launch of Grazia Korea (bi-monthly) and Grazia Spain (weekly) in February 2013. As to the other international editions of Mondadori magazines, the launch of the German edition of Flair is worth noting, published by the Klambt Group in August 2012.

Syndication and photorights: this activity includes the sale of images produced by Mondadori and/or third parties, for which Mondadori acts as an agent, to a hundred of different publishers in more than forty countries.

Advertising: revenues from advertising grew by 17.1% against 2011 thanks also to the expansion of the activities in the French and Swiss markets, extending the company’s reach also to other product categories.

The Mondadori Group also owns interests in Greece, China and Russia:

– Attica Publications posted dropping revenues by 3% against 2011: considering the extremely difficult economic scenario, the performance was satisfactory and allowed the company to post a positive pre-tax result. The crisis in Greece and competitors’ difficulties enabled Attica to considerably increase its market share, obtaining benefits deriving from its leadership position.

– Mondadori Seec Advertising Co Ltd, exclusive concessionaire for the collection of advertising for the Chinese edition of Grazia, launched in 2009, posted a 56% revenue growth in 2012 against the previous year. This result enabled it to close the financial year with profits one year ahead of schedule.

– Mondadori Independent Media LLC, publisher of Grazia in Russia, closed 2012 at break-even thanks to the good performance of investments in advertising, which registered a 21% growth against the previous year.

Revenues generated from the international network of the magazines under licensing agreement and investments amounted to more than euro 160 million, up 9% against 2011.

· ADVERTISING
The continuing deterioration of the general economic situation has had a predictable impact on investment in advertising, which closed out the worst year in the past two decades (-14.3%). The market, in fact, dropped well below a value of euro 8 billion for the first time since 2003 at current prices and in real terms, down to the levels of 1991.

As already mentioned, the sharpest decline was seen in the print media, with newspapers (-17.6%) and magazines (-18.4%, reaching -21.4% if comparing the same number of publications to 2011), the sectors in which Mondadori Pubblicità S.p.A. mainly operates.

Advertising on the radio channel was also down considerably: after a positive start in 2012, advertising volumes dropped 10.2% compared to the previous year.

Internet was the only channel posting positive numbers (+5.3%), though showing signs of a sharp slowdown in the last months of the year.

In this scenario, every single segment has suffered a sharp cut in advertising investments.

Though facing increasingly aggressive competition in terms of prices, Mondadori Pubblicità paid close attention to pricing, in an attempt to reinforce the value of the publications it represents in concession.

In 2012, the company posted revenues at euro 172.9 million, down 21.4% against euro 219.9 million of 2011: all sectors were hit by the crisis, including Cosmetics, Interior Design and Automotive.

In particular:
– revenues from advertising for the Mondadori magazines were down 22.6% as a result of the negative performance of both monthlies and weeklies;
– revenues from advertising on the Radio channel dropped by 14.9%. This was largely due to cost containment policies on the part of clients from the sectors that had historically been the most important, such as Automotive, Consumer Goods and Telecommunications.

Increases in both volume and revenues from clients in the Fashion and Design sectors were not enough to counterbalance the reduction in investments by the traditional radio advertisers.

In 2012, the Mediamond S.p.A. joint venture registered an overall increase in revenues equal to 63.4%; the main web sites of the Mondadori Group are in constant growth: www.donnamoderna.com (+22%), www.grazia.it (+43%) and www.panorama.it (+22%), while RTI, TgCom (+10.5%) and Sport Mediaset (+53%) are also growing. Advertising for the www.videomediaset.it web site, which was added to the portfolio in January 2012, also posted strong growth figures.

· MAGAZINES FRANCE

The magazines market in France posted a reduction of 5.4% in value for circulation at newsstands (internal source) and lower investments from advertising by 4.9% in value (source: Kantar Media).

In this difficult scenario, Mondadori France obtained good results in 2012: revenues totaled euro 381.6 million, up 9.6% against euro 348.1 million in the previous year. On a like for like basis, excluding the integral consolidation of the Editions Mondadori Axel Springer S.n.c. joint venture, revenues would have shown a 2.2% drop in the period.

The ongoing improvement of products, combined with constant attention to cost containment policies, enabled the company to post a 16.5% increase in EBITDA against 2011, topping euro 38.9 million with a 10.2% incidence on revenues.

However, impairments amounting to a total of euro 140 million, including impairment on magazines and goodwill, had a strong impact on EBIT.

Revenues from advertising: from this standpoint, revenues on a like for like basis registered a 2.4% reduction against the previous year; in terms of volume, the decrease amounted to 1.4% in a market that showed a 5.7% overall drop (source: Kantar Media).

In the second half of the year, the advertising market showed a downturn against the first half, which had closed with results essentially in line with 2011.

In this context, Mondadori advertising revenues increased for the fourth consecutive year in terms of volume, consolidating its second position.

This excellent result reflects the growing trend of women’s magazines, including Grazia (+7.2%), Biba (+10.8%) and Pratique Modes & Traveaux (+9.1%), and the steady performance of the other publications despite the definitely unfavourable market scenario.

Revenues from circulation: revenues from circulation (newsstands and subscriptions), making for approximately 70% of the total revenues of Mondadori France, registered a reduction (-2.2% on a like for like basis).

Based on circulation audits DSH, the circulation of magazines in 2012 decreased by 4.3% in terms of copies. Mondadori registered a 3.6% reduction. For the third consecutive year Mondadori France outperformed the market.

In terms of value, sales at newsstands dropped 5% in the period. This reduction is in line with the market trend (-5.4% in the period; internal source).

Subscriptions, which rose by 0.5% against 2011, have increased by 10% over the last five years, making for 33.6% of Mondadori France revenues with over three million subscribers.

The key factors underlying the good performance of magazine circulation are ongoing innovation and publishing quality including product restyling and the launch of brand extension initiatives on the magazines.

Digital: in 2012, Mondadori France accelerated its investments in this area, targeting a 28% increase in revenues and a 67% increase in the audience, reaching 4.5 million single hits in 2012, against 2.7 million hits of 2011 (source: Nielsen).

It should be noted that at the end of August 2012, Mondadori France acquired a 60% interest in Naturabuy.fr, a leading web site for classifieds and personals, auction sales and a boutique for products associated with free time and, specifically, hunting and fishing. Last year Mondadori France also acquired the majority stake in AutoReflex.com, a web site featuring car ads.

· DIRECT

In 2012 the main products offered by the Mondadori Direct S.p.A. network registered sharp drops in revenues: books (-8%), dvd-films (-18%) and music (-14%) were all down, with the exception of gift boxes and consumer electronics, which grew respectively by 6.5% and 6% (source: GFK).

Advertising investments by companies in the traditional direct marketing channels, like door to door, mailings, inserts and telemarketing, have been in decline for several years, a logical consequence of technological innovation and the progressive replacement of these channels with web-based communication, mainly e-mail marketing and social media.

In this context, the revenues of the Direct area dropped by 5.8% to euro 261.8 million against euro 278 million of 2011.

In 2012 the top management concentrated on the following areas:
– activities related to the rationalization of sale points, which diminished by 31 units to a total of 597 sale points, in line with company policies targeting the integration of the various formats;
– further development of customer loyalty initiatives using the Mondadori Card, whose numbers have more than doubled in a year (units 700,000);
– redefinition of the strategies for retail, both hard copy and digital, with the creation of the inMondadori trademark as an umbrella brand, comprising all product and service sale formats offered, including e-commerce;
– signing of a partnership agreement with Kobo Inc. for the exclusive Italian distribution rights to the new Kobo e-reader, in various versions and formats.

· RADIO

In 2012, advertising revenues from the Radio channel, certified by Nielsen, decreased by 10.2%, with a downward trend that worsened over the course of the year (in June -5.5%, in September -8.1%, in December -10.2%).

In this context, R101 closed 2012 with a drop in advertising revenues of -13.7% compared to 2011, ascribable to a significant cut in investments by the key clients in the Automotive, Consumer Goods and Telecommunications sectors, which together accounted for more than 50% of its total revenues. Including revenues from the web site and other initiatives launched during the course of the year, total revenues were down 14.7% from euro 16.3 million in 2011 to euro 13.9 million in 2012.

EBIT reflected the effects of the reduced value of the frequencies assigned for a total of euro 46.3 million as a result of the impairment process and based on the opinion drafted by an independent professional consultant.

In terms of listeners, R101 is one of the leading commercial radio stations in Italy, with about 2.1 million listeners on an average day (source: Eurisko Radio Monitor, January-December panel) and more than 11.3 million per week (source: Eurisko Radio Monitor, February-December panel); the data on the average fifteen-minute segment for the last quarter were also very positive, posting an 18% increase over the first half of 2012 (source: Eurisko Radio Monitor).

The digital growth of R101 in 2012 was also significant: the web site reached an average of 200,000 single users per month and averaged more than 1.4 million page views per month.

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RESULTS OF PARENT COMPANY ARNOLDO MONDADORI EDITORE S.P.A.
The Annual Report of the parent company, Arnoldo Mondadori Editore SpA, for the year ended at December 31, 2012 shows a net loss of euro 39.6 million against net profits of euro 55.3 million in 2011.

The decrease was due to dropping revenues from publishing activities, particularly in the magazines area, where revenues plummeted, both in terms of number of copies sold and the sale of add-ons, as well as in the sale of advertising space.

EBITDA reflected the business trend, down from euro 48.5 million in 2011 to euro 3.9 million in 2012.

This reduction aggregates trademark depreciation for euro 1.4 million and the depreciation of Monradio (R101 frequency) for euro 46.3 million. The net balance of profits and losses from investments, including dividends received and impairments in 2011 was equal to a positive euro 35.4 million and a negative euro 30.8 million in 2012.

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PROPOSAL TO COVER THE LOSSES FROM THE FISCAL YEAR BY UTILIZING A PORTION OF THE SHARE PREMIUM RESERVE

The Board of Directors will submit to the Shareholders’ Meeting, called on April 23, 2013 on first call (April 24 on second call) a proposal to entirely cover the losses of the 2012 fiscal year, equal to euro 39,574,943.13, through the utilization of the share premium reserve for the corresponding amount.

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PREDICTABLE EVOLUTION

The trend in the first months of 2013 continues to be strongly negative, with an impact on the company’s main sectors of activity.
Cost reduction measures implemented in recent years have allowed Mondadori to post positive results in 2012, before impairments. However, given the difficult scenario in which the Group is currently operating in all sectors of activity, for the purpose of recovering profitability in the medium term, the Group intends to implement the following measures with even greater emphasis:

• rationalization of the structure and reduction of industrial costs, resulting in greater flexibility in responding to the changing levels of demand;
• actions necessary to consolidate high value added business lines and the recovery of profitability in the area of Italian Magazines, with the ultimate aim of further reinforcing the Group’s competitive position and make the most of any new opportunities, also in the digital area.

Realization of the above objectives will require massive financial and economic investments; for 2013 a lower EBITDA than in 2012 is expected.

RENEWAL OF THE AUTHORIZATION TO PURCHASE AND DISPOSE OF TREASURY SHARES

Following expiry of the previous authorization resolved by the Shareholders’ Meeting on April 19, 2012, upon the approval of the financial statements at December 31, 2012, the Board of Directors will submit to the next Shareholders’ Meeting the proposal for the renewal of the authorization to purchase Treasury Shares for the purpose of maintaining the legal requirement for possible buyback plans applicable and, consequently, the possibility of taking advantage of investment opportunities on its Treasury Shares.

It should be noted that the Shareholders’ Meeting of April 19, 2012 had authorized purchases, also taking the shares already in portfolio into account, up to a cap equal to 10% of the company’s share capital, represented by n. 24,645,834 ordinary shares.

Considering the total of n. 13,555,209 shares already directly or indirectly owned as at the date of the Shareholders’ Meeting, the authorization provided for the possibility of purchasing max. another n. 11,090,625 Treasury Shares.

In relation to the authorization of April 19, 2012 Arnoldo Mondadori Editore S.p.A. purchased a total of n. 1,398,291 Treasury Shares, corresponding to 0.56% of the company’s share capital on the Mercato Telematico Azionario (screen-based stock exchange).

Following completion of the aforementioned transactions, the total number of Treasury Shares comprehensively owned by the company, either directly or indirectly, is equal to n. 14,953,500 corresponding to 6.067% of the company’s share capital, of which n. 10,436,014 directly in Arnoldo Mondadori Editore S.p.A.’s portfolio and n. 4,517,486 owned by its subsidiary Mondadori International S.p.A.

Pursuant to article 2357 ter of the Italian Civil Code, the Shareholders’ Meeting will also be submitted an authorization to dispose of Treasury Shares purchased or already in the Company’s portfolio.

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

• Reasons

The reasons underlying the request for the authorization to purchase and dispose of Treasury Shares make direct reference to the opportunity of giving the Board of Directors the power to:

– use the Treasury Shares purchased or already in the Company’s portfolio in relation to the exercise of rights, including conversion rights, deriving from financial instruments issued by the Company, its subsidiaries and third parties;
– use the Treasury Shares purchased or already in the Company’s portfolio to pay for the acquisition of interests within the framework of the Company’s investment policy;
– possibly dispose, if considered strategic for the Company, of investment opportunities also in relation to the Company’s available liquidity;
– dispose of Treasury Shares in relation to the exercise of options for the purchase of the same shares attributed to the beneficiaries of the Stock Option Plans established by the Shareholders’ Meeting;

• Duration

Until the approval of the 2013 financial statements.

• Maximum number of repurchasable shares

The renewed authorization refers to the purchase of max. another n. 9,692,334 shares (3.933% of the Company’s share capital) which, taking into account the Treasury Shares already owned either directly or indirectly by the Company as above indicated, would enable the Company to reach the cap of 10% of the Company’s share capital, in line with the previous authorization coming to expiry.

• Criteria for purchasing Treasury Shares and indication of the minimum and maximum purchasing cap

Purchases shall be made on the regulated markets pursuant to article 132 of Italian Legislative Law n. 58 of February 24, 1998 and article 144 bis, paragraph 1, letter B of Consob Regulation n. 11971/99 according to the operating criteria established in the organization and management regulations of the same markets, which do not allow the direct combination of the purchase negotiation proposals with pre-determined sale negotiation proposals.

The minimum and maximum purchase amount would be determined under the same conditions established in the previous Shareholders’ Meetings and, therefore, at a unit price not lower than the official Stock Exchange price of the day preceding the purchase transactions, decreased by 20%, and not higher than the Stock Exchange price of the day preceding the purchase transactions, increased by 10%.

In terms of prices and daily volumes, the purchase transactions would in any case be completed in compliance with the conditions established in EC regulation n. 2273/2003.

Today at 3pm, at the Company’s headquarters in Segrate, the Mondadori Group top management will present the results for 2012, approved on today’s date by the Board of Directors, to the financial community.

The entire documentation is available on the web site www.gruppomondadori.it (Investor Relations Section) and from Borsa Italiana S.p.A..

The CV of Mr Ernesto Mauri is available in the Governance section of our website www.gruppomondadori.it.

The executive manager responsible for the preparation of the company’s accounts, Carlo Maria Vismara, declares that, pursuant to aricle. 2, 154 bis of the Finance Consolidation Act, the accounting information contained in this release corresponds to that contained in the company’s formal accounts.

Carmine Perna has been appointed general manager of Mondadori France Group, reporting directly to the chairman of Mondadori France, Ernesto Mauri.

In his new role Perna will be responsible for coordinating the activities of the members of the operating committee of Mondadori France: Valérie Camy (executive director Mondadori France Publicité), Carole Fagot (executive director of the area Femme, Science et Loisirs), Stéphane Haitaian (director of the area Star e Nature) and Fabienne Mercier-de Luze (head of human resources and legal affairs).

Carmine Perna, 43, has a degree in economics and business administration from the Bocconi University in Milan and has extensive experience in the administration and fiscal areas. He joined the Mondadori Group in 2006 where he had a series of roles with increasing responsibility in finance and administration before moving, in 2007, to Mondadori France as chief financial officer. In 2010 he was appointed executive director Finance & Operations, expanding his role to include also, from April 2012, the management of the magazine division Auto.

Riccardo Cavallero, General Manager of Mondadori Trade Books Division, gathering all books activities of the Group, has been also appointed General Manager of Edizioni Mondadori ad interim as of March 18, 2013.

Mondadori is leader in the Italian book market with a 27.6% share in 2012 (source: Nielsen Bookscan). Its extensive offering includes fiction, non-fiction, popular non-fiction books and children’s books. The general management operates through four main publishing houses, Giulio Einaudi editore, Edizioni Piemme, Sperling & Kupfer and Edizioni Mondadori, first imprint with a 14.1% share in 2012 (source: Nielsen Bookscan).

“We recently started a process aimed at integrating the publishing and managerial resources in every publishing house of the Group”, said Riccardo Cavallero. “The plan also involves Edizioni Mondadori, with the objective of globally enhancing the leadership of the individual brands and of Trade Books Division. Reflecting the virtuous model applied for instance by Knopf in the United States, the combination of publishing and marketing functions is targeted to strengthen the value of the profiles operating in a more effective team context”.

“Let me thank Laura Donnini, a highly professional manager and colleague of rare character and integrity, for the significant contribution she has given in these years and for the atmosphere of collaboration and respect that she has developed. I wish her the brilliant personal success she deserves”, concluded Cavallero.

Maurizio Costa, CEO and Deputy Chairman of Arnoldo Mondadori Editore S.p.A., informed the Board of Directors, which met with Marina Berlusconi in the chair, that he will resign from his positions with effect from the Board’s approval of the draft financial statements for the period ended on 31 December 2012, scheduled to take place on 20 March this year.

Maurizio Costa has been at the head of the Mondadori Group since 1997. Under his management, the company has strengthened its leading position in the books publishing sector, has embarked on the development of magazines abroad – the Group is now present in more than 20 countries – and has carried out a far-reaching review of its business portfolio, including exiting the printing sector among other aspects.

The Chair then informed the Directors that on the occasion of the Board of Directors scheduled on 20 March, she intends to move that Ernesto Mauri – the General Manager of Mondadori Magazines and Chairman and General Manager of Mondadori France – be co-opted onto the Board and appointed Chief Executive, once the Remuneration and Appointments Committee has completed the work for it is responsible.

“I believe that this is a very particular moment for all those who love Mondadori” stated Marina Berlusconi at the end of the meeting. “The passion and professionalism with which Maurizio Costa has led the company during these sixteen years, in an increasingly complex sector like publishing, his loyalty and honesty, in short, in fact, everything that he has done in the service of a company that is so important for the life of this country, deserve the most sincere gratitude on the part of our publishing house, all its shareholders and on my part personally. But Costa’s decision does not break off his long relationship of collaboration with the Fininvest Group and my family. In fact he will take on the position of Deputy Chairman of Fininvest S.p.A., concluding a process that began last June when he entered the parent company’s Board of Directors.”

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The Board of Directors of Arnoldo Mondadori Editore S.p.A. also co-opted Danilo Pellegrino, the General Manager of Fininvest, to replace Roberto Briglia, formerly acting as an Executive Director owing to the executive position that he previously held with the company, who resigned with effect from today’s meeting.

The CV of Danilo Pellegrino, who has the status of a Non-Executive Director in compliance with the Italian Stock Exchange Self-Regulation Code, may be consulted in the Governance section of website www.mondadorigroup.com.

As of March 1, 2013 a new function will be included – Literary Director – reporting to Laura Donnini, Managing Director of Edizioni Mondadori. The new position will be assigned to Antonio Riccardi who, in cooperation with the Editorial Directions, will support Laura Donnini in the development of the company’s publishing strategies.

“The changes of the book publishing market deriving from the digital revolution and the new reading habits as well as the increased crossover of genres and literary styles have inspired a new, more strengthened organization better focused on our publishing strategies”, said Laura Donnini.

“We believe that the new structure will enable us not only to increase our ability to acquire new editorial talents, but also to strengthen our publishing and marketing capabilities with a synergic approach to all possible content formats, keeping clear in mind that competition is no longer only for the market share but also for the share of attention of our potential readers”, continued Donnini.

The Editorial department of Edizioni Mondadori, reporting to Laura Donnini, Managing Director, includes: Literary Director – Antonio Riccardi; Fiction Books Department headed by Antonio Franchini; Non-fiction Books Department headed by Francesco Anzelmo; Popular Non-fiction Books Department headed by Gabriella Ungarelli; Children Books Department headed by Fiammetta Giorgi; Paperback Books Department temporarily headed by Antonio Riccardi.

The Mondadori Group is a media partner of the new edition of Social Media Week that begins today in Milan in conjunction with nine other cities around the world. The event, which will continue until Friday 22 February, is dedicated to the analysis of the role of social media in both the public and private aspects of people’s lives.

Mondadori, a leader in magazine and book publishing and with the most extensive network of bookstores in Italy, has always paid attention to the languages ​​and forms of communication of all of its communities of readers, both print and digital. The Group is present online with dozens of brands active on all of the major platforms and follows with interest the creativity and dynamics of the social landscape.

The social profiles of the Group include more than one million fans on Facebook and 700 thousand followers on Twitter. The company’s profile on Linkedin now has more than 10,000 contacts. Meanwhile the company’s brands are also active on other social networks, including YouTube, Pinterest and Tumblr.

On the occasion of Social Media Week, Mondadori’s digital channels will cover the issues emerging from the presentations, discussions and workshops, drawing up an outline of the new scenarios in media and technology. The Group will also make its own event space InMondadori (inlibreria.inmondadori.it), at its store in Piazza Duomo in Milan, available, making it one of the official locations of Social Media Week and host to some of the daily events in the programme.

Some of the most anticipated events include:

– on Tuesday 19 February, from 1pm “La città che dà spazio al tempo: conciliazione e work-life balance”, moderated by Annalisa Monfreda, editor of Donna Moderna;

– on Tuesday 19 February, from 3pm, “Facciamoci avanti. Le donne, il lavoro e la voglia di riuscire” (Putting ourselves forward. Women, work and the will to succeed), with Laura Donnini, general manager of Edizioni Mondadori. A round table discussion, organised in association with Valore D, and inspired by the book by Sheryl Sandberg, COO of Facebook, Facciamoci avanti (Lean In), which will be published in Italy on 12 March.

– on Wednesday 20 February, from 3pm, a panel discussion and analysis of the links between social media and the law, starting from the recent shutdown of the site Avaxhome.ws;

– on Wednesday 20 February, from 7pm, “Communicating Fashion on Tumblr”, a discussion led by Tamu McPherson, Style Director of Grazia.it;

– on Friday 22 February at 3pm, “Twitter: a guide to digital chat”, with Stefano Jugo, head of editorial marketing at Giulio Einaudi Editore.

Social Media Week will be followed by R101, which will give a voice to many of the most important personalities of the Italian net during the station’s most popular programmes.

You can follow Social Media Week on Twitter using the hashtag #SMWMilan

An up-to-date calendar of the events of Social Media Week is available at

socialmediaweek.org/milan/schedule/

With regard to press agency reports and comments on social networks concerning the career of Giulia Ichino, Mondadori underlines that professional qualifications are the only criteria that have ever guided the management of the company’s human resources.

Giulia Ichino, 34, and the mother of one child, has been the head of Italian fiction for Edizioni Mondadori since 2010 and is responsible for all of the series that publish new Italian fiction.

Having first joined Mondadori in 2002 as an editor, Giulia Ichino is now a well respected figure in Italian publishing and has worked with dozens of authors, from Giuseppe Pontiggia to Margaret Mazzantini, Andrea Camilleri, Roberto Saviano, Paolo Giordano, Niccolò Ammaniti, Alessandro Piperno, Carmine Abate, Chiara Gamberale, Daria Bignardi, Mauro Corona, Valerio Massimo Manfredi and many more.

The Mondadori Group is a media partner of the new edition of Social Media Week that, from 18 to 22 February, returns to Milan in conjunction with nine other cities around the world.
The event is dedicated to the analysis of the role of social media in both the public and private aspects of people’s lives.

Mondadori, a leader in magazine and book publishing and with the most extensive network of bookstores in Italy, has always paid attention to the languages and forms of communication of all of its communities of readers, both print and digital. The Group is present online with dozens of brands active on all of the major platforms and follows with interest the creativity and dynamics of the social landscape.
The social profiles of the Group include more than one million fans on Facebook and 700 thousand followers on Twitter. The company’s profile on Linkedin now has more than 9,500 contacts. Meanwhile the company’s brands are also active on other social networks, including YouTube, Pinterest and Tumblr.

On the occasion of Social Media Week, Mondadori’s digital channels will cover the issues emerging from the presentations, discussions and workshops, drawing up an outline of the new scenarios in media and technology.
The Group will also make its own event space InMondadori, at its store in Piazza Duomo in Milan, available, making it one of the official locations of Social Media Week and host to some of the daily events in the programme.

Among the most anticipated events on Tuesday 19 February, from 3pm, a round table discussion “Facciamoci avanti. Le donne, il lavoro e la voglia di riuscire” (Putting ourselves forward. Women, work and the will to succeed), with Laura Donnini, general manager of Edizioni Mondadori. The meeting, organised in collaboration with Valore D, discusses the issues raised by the book by Sheryl Sandberg, COO of Facebook, Facciamoci avanti (Lean In), which will be published in Italy on 12 March.

Another woman will be the main guest of the evening dedicated to the use of Tumblr in the fashion world: Tamu McPherson, Style Director of Grazia.it, will lead the discussion at the meeting on Wednesday 20 February at 7.30pm with Valentine Uhovski, Tumblr‘s Fashion Evangelist.

A panel devoted to legal issues in social media will provide an opportunity to discuss the forced closure of the site Avaxhome.ws, obtained by the Mondadori Group in the autumn: on Wednesday 20 February at 3pm legal experts will attempt to clarify the not subtle difference between the free movement of editorial content and crimes committed on the net.

Social Media Week will be followed by R101, which will give a voice to many of the most important personalities of the Italian net during the station’s most popular programmes.

An up-to-date calendar of the events of Social Media Week is available at http://socialmediaweek.org/milan/schedule/

From February Annalisa Monfreda will be the new editor of the weekly Donna Moderna. At the same time Monfreda will also take over editorial responsibility for the weekly Confidenze.

Annalisa Monfreda, 34, the mother of 2 children, and a degree in modern literature from the University of Bari, began her career in 1996. After initial professional experience and a Master’s in journalism at the University of Urbino she worked for a number of magazine titles, including Donna Moderna. In 2005 she joined Gruner+Jahr/Mondadori on the staff of Geo and was subsequently appointed editor of Topgirl in 2008 and the following year of Geo. Since September 2010 she has been the editor of Cosmopolitan.

Mondadori wishes to extend its sincerest thanks to Patrizia Avoledo for the professionalism and passion demonstrated over the years she has been with the company: a lengthy period during which Patrizia has contributed, with her team, to making Donna Moderna Italy’s top selling women’s magazine, with over 2.7 million readers (Audipress 2012/II).