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HEDGINGS

The Company uses fnancial instruments to hedge the impact of foreign exchange diferences in connection with transactions (primarily the acquisition of external production rights) denominated in foreign currency. These hedges are designed to ofset the impact on the income statement of exchange-rate fuctuations in outstanding amounts payable on these transactions. Specifcally, the Company buys foreign currency forward for the amounts payable so as to match the forecast payment dates.

RISK CONTROL

As part of its general oversight function, the Board of Directors is in charge of identifying the Telecinco Group’s main risks, as well as implementing and monitoring the internal information and control, and internal reporting systems.

In addition, among the basic responsibilities of the Audit and Compliance Committee are to know and verify the appropriateness of the fnancial reporting process and internal control systems.

To support 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 Telecinco is based on the COSO II (Committee of Sponsoring Organizations of the Treadway Comission) integrated framework for enterprise risk management.

Telecinco 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

Telecinco’s biggest investments go to the current and future content broadcast by the Group. It does not have a specifc R&D department, although innovation is still a crucial area of future development.

EVENTS AFTER THE REPORTING PERIOD

As of the date of authorisation for issue of these consolidated fnancial statements, the signifcant events after the reporting period are those listed in the corresponding section in these Notes. Worth noting is the redundancy plan fled with the Directorate General of Labour on 1 February 2010 afecting a total of 110 employees of Sogecuatro and CINTV. The directors estimate that this procedure will be concluded by 1 April 2011.

CAPITAL STRUCTURE

The Company’s share capital before the capital increases carried out to acquire Cuatro and 22% of Digital+ amounted to EUR 123,320,928.00, made up of 246,641,856 shares of the same class represented by book entries and with a par value of EUR 0.50 each. As a result of the capital increases, the number of shares increased to 406,861,426 of EUR 0.50 par value each, taking the total to EUR 203,430,713. All the shares are of the same class and represented by book entries.

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GESTEVISION TELECINCO, S.A.