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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
Mediaset España is aware of the social impact of its actions. This awareness is all the more impor tant at Mediaset
España as a mass media, prompting the network to spearhead a variety of initiatives, such as the “12 meses, 12 causas”
(12 months, 12 causes) project to make the network’s viewers more aware of a series of issues. The program entails
a monthly spot and a web platform through the www.12meses12causas.com webpage, which encourages community
interaction and awareness of younger people.
Internally, Mediaset España also remains firmly committed to the training and career development of its employees.
HEDGING
The Company uses financial instruments to hedge the impact of foreign exchange differences in connection with
transactions (primarily the acquisition of external production rights) denominated in foreign currency.These hedges are
designed to offset the impact on the income statement of exchange-rate fluctuations in outstanding amounts payable
on these transactions. Specifically, the Company buys foreign currency forward for the amounts payable so as to match
the forecast payment dates.
RISK CONTROL
As par t of its general oversight function, the Board of Directors is in charge of identifying the Mediaset España’s main
risks, as well as implementing and monitoring the internal information and control, and internal repor ting systems.
In addition, among the basic responsibilities of the Audit and Compliance Committee are to know and verify the
appropriateness of the financial repor ting process and internal control systems.
To suppor t and back this Committee, a Corporate Risk Management System is applied consistently at all Group
companies.This system is reviewed and updated periodically.
Corporate risk management at Mediaset España is based on the COSO II (Committee of Sponsoring Organizations of
the Treadway Comission) integrated framework for enterprise risk management.
Mediaset España monitors its risks permanently, assessing the relevance and potential impact on Group companies, the
probability that this risk will occur and the degree of control over the risk.
RESEARCH AND DEVELOPMENT
The Company’s biggest investments go to the current and future content broadcast by the Group. It does not have a
specific R&D depar tment, although innovation is still a crucial area of future development.
EVENTS AFTER THE REPORTING PERIOD
The main events occurring between the end of the repor ting period and the date of authorisation for issue of the
financial statements are those discussed in the related Note to the financial statements.