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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT. 2012
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 department, although innovation is still a crucial area of future development.
EVENTS AFTERTHE REPORTING PERIOD
The main events occurring between the end of the reporting period and the date of authorization for issue of the
financial statements are those discussed in the related Note to the financial statements.
CAPITAL STRUCTURE
The Company’s share capital before the capital increases carried out to acquire Cuatro and 22% of Digital+ amounted
to 123,320,928.00 euros, made up of 246,641,856 shares of the same class represented by book entries and with a par
value of 0.50 euros each. As a result of the capital increases, the number of shares increased to 406,861,426 of 0.50
euros par value each, taking the total to 203,430,713 euros. All the shares are of the same class and represented by
book entries.
The Company’s shares are listed on the Madrid, Madrid, Barcelona, Bilbao and Valencia stock exchanges.The ISIN code
is ES0152503035.
Mediaset España Comunicación, SA is a member of the IBEX 35 since January 3, 2005.
BUSINESS OUTLOOK
The Company’s business is dependent on national private consumption, and as such, in 2013 will not be able to separate
itself from the overall macroeconomic environment and related indicators. As discussed in this Management Report,
despite the fact the there are reasonable expectations that towards the end of the year Spain will begin to experiment
the first signs of economic recovery after nearly five years of an unprecedented deep recession, this is not to say that
in 2013 (particularly during the first six months) basic economic indicators such as unemployment and consumption
will not continue to be big concerns.
As regards free-to-air television, a sector in which the Company was pioneer and is still consolidating its presence, it
should continue forging a strong presence based on rationalized use and transparency, making it more easily adaptable
to the demands of the economy as well as the situations presenting themselves when expected recovery arrives.
Available data onTV consumption and its share of the total advertising income pie indicate that the sector has undergone
a crisis brought on by the economic recession; however, structural factors remain solid.
Within this context of the concentration and consolidation of operators, the Company’s business strategy will be
focused on how to maintain its strong lead, in both terms of audience as well as advertising market, while being fully-
adapted to the environment which affects cash generation as well as its cost structure, in order to protect its financial
margins as well as foster growth once the economy makes it possible to do so.
As far as its programming lineup is concerned, the Company will continue to support genres which have traditionally
been popular, thereby making it the indisputable leader of the market; it will also continue with its strategy of diversifica-
tion, focusing on the different audience to which the family of channels is tailored.Also, it will endeavor to better position
each channel in advertising terms, while remaining cognizant of sporting events which, in an increasingly-fragmented
market, are very popular and attract large audiences. All this will take place with close supervision of acquisition costs
and attention to advertising opportunities, which are key to obtaining economic benefits, as well as a relevant goal within
our programming strategy and commercial operations.
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