MARCH 2014 RESULTS PRESENTATION Madrid, 2014

MARCH 2014 RESULTS PRESENTATIONMadrid, 2014

2

Disclaimer

In addition to figures prepared in accordance with IFRS, PRISA presents non-GAAP financial performance measures, e.g., EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net profit, free cash flow, gross debt and net debt, among others. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. For further information relevant to the interpretation of these terms, please refer to the “Reconciliation Section” of the 1Q 2014 earnings press release filed with the Securities and Exchange Commission and posted on prisa.com.

This document may contain “forward-looking statements” as defined in Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements about the financial conditions, results of operations, earnings outlook and prospects of the Company. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.

Forward-looking statements are based on management’s current expectations and are inherently subject to uncertainties and changes in circumstance and their potential effects and each speaks only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated.

These forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in our filings with the Securities and Exchange Commission under “Risk Factors”.

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Executive summary

Improving macro environment in Spain & Portugal…1

… Although still fragile recovery in advertising investment2

PRISA maintains the leadership position in all businesses where it is present3 Press: #1 generalist press Radio: #1 music & generalist in Spain, Colombia & Chile Education: #1 Spain, Brazil, Mexico, Argentina Chile, Colombia FTA TV Portugal: #1 audience in 24hrs and prime time Pay TV Spain: #1 in 2013 and 1Q 2014 (number of subscribers)

Strong cost & capex control efforts undertaken6

Solid, strong performance in Latam activities in constant currency, but negative FX impact4

Group digital development continues to grow5

Group focussed on executing debt reduction plan7

Improving macro conditions since 2013 Improvement expected to continue in 2014-2015

Quarterly improvement in Spanish & Portuguese advertising sectors Advertising Group revenues fall by 6.7% in Spain & grow by 3.1% in Portugal in 1Q 2014

Adjusted revenues at constant currency grow by +3.1%

Digital ad revenues grow by 6.9%: in Press they reach 29% of total division ad revenues Unique browsers to PRISA sites grow by 16.6% Digital education systems continue to grow in Brazil, Mexico & Colombia

Sale of General Publishing business has been agreed Sale of 3.69% stake in Mediaset España undertaken in April 2014. Debt buyback action in progress Acceptance of the offer received from Telefónica for the purchase of PRISA’s 56% stake in Canal+

All costs reduced except for football rights

4

Spain & Portugal macro environment

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13E 1Q14

-1.7

-2.1 -2-1.6

-1.1

-0.2

0.4

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13E

-3.6-3.8 -4.1

-2.0-1.0

1.7

Spain Portugal

2008 2009 2010 2011 2012 2013E 2014E 2015E

-5.9 -5.5

-1.7

-5.6

-7.4

-4

0.1

0.7

2008 2009 2010 2011 2012 2013E 2014E 2015E

3.3

-3.8

-0.10.1

-1.7 -1.20.9 1.0

0.0

-2.9

1.9

-1.3

-3.2

-1.5

1.21.4

Spain Portugal

Source: INE

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

-5.7 -5.2 -5.1

-7.0

-3.4

-6.9

-8.0-9.5 -9.9

-4.7

-1.4

0.5 0.0

Spain & Portugal GDP (%)

Spain retail sales (%)

Source: INE, Bank of Portugal & IMF

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Iberia advertising market

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

-0.6

-9 -8.4 -9.2

-15.1 -16.2 -16.9

-23.1

-16.8

-13

-3 -1.7 -1.3

Source: i2p, March, 2014

Spain advertising market growth (%)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E

8.8

6.2 5.4

-11.4

-21.9

2.3

-7

-18

-10.1

1.7

2011 2012 2013 2014

Sunday paper

Magazines

Press

Radio

Outdoor

Cinema

Television

Internet

-23.8

-18.7

-14.8

-10.6

-11.5

-10.3

-7.5

-2.5

-8.1

-7.3

-2.6

1

2.2

20.7

4

4.8

2014E

2013

Evolution of advertising investment in Spain per sector (%)

Source: i2p, March, 2014

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Latin America macro & FX environment

Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-1490

95

100

105

110

115

120

Brazil Mexico Colombia Chile

Source: World Bank, IMF

2007 2008 2009 2010 2011 2012 2013 2014 2015-6%

-4%

-2%

0%

2%

4%

6%

8%


* All Group and business unit figures are Adjusted (exclude non-recurring items, detailed in the press release)Source: Bloomberg

Latam GDP growth (%)

Latam FX evolution


Q1 2013 1,51 9,58 1.358,01 357,95

Q2 2013 1,58 9,55 1.425,55 371,18

Q3 2013 1,73 9,75 1.440,29 382,70

Q4 2013 1,67 9,57 1.405,41 379,55

Q1 2014 1,72 9,66 1.463,12 402,54

1Q14/1Q13 -14,0% -0,8% -7,7% -12,5%

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Consolidated Group Results

* All Group and business unit figures are Adjusted (exclude non-recurring items, detailed in the press release)

1T 2014 1T 2013 % Ch.

Revenues 630.90 678.15 (7.0%)

EBITDA 58.54 82.88 (29.4%)

EBITDA margin 9.3% 12.2%

EBIT 8.59 27.14 (68.4%)

EBIT margin 1.4% 4.0%

Group results (€m)

Group results ex Canal+ at constant currency (€m)

1T 2014 1T 2013 % Ch.

Revenues 378.53 378.13 0.1%

EBITDA 73.50 66.90 9.9%

EBITDA margin 19.4% 17.7%

EBIT 40.54 35.24 15.0%

EBIT margin 10.7% 9.3%


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Consolidated Group Results – Canal+ & FX impact

90

Revenues

Opex 281

339

Ex Canal+

311

378

305

379

Ex Canal+, local currency

311

378

% Ch

(1.9%)

0.1%

% Ch

(9.7%)

(10.4%)

572

631

Group adjusted

595

678

1Q14 1Q13 % Ch

(3.8%)

(7.0%)

EBITDA 58 67 74 67 9.9%(13.4%)59 83 (29.4%)

Spain 105 113 105 113 (6.6%)(6.6%)397 413 (3.8%)

International 234 265 274 265 3.1%12.0%234 265 (12,0%)

Spain 123 136 123 136 (9.6%)(9.6%)414 420 (1,4%)

International 158 175 182 175 4.0%9.8 %158 175 (9.8%)

Spain (18) (23) (18) (23) 23.9%23.9%(17) (7) (134%)

International 76 90 91 90 1.3%(16.1%)76 (16.1%)

(€m) 1Q14 1Q13 1Q14 1Q13

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(40)(8) (4)

(5) (2)

15 3 3

Revenue Evolution

34.5% 13.3% 4.4% 9.2% 0.9% 32.1% 5.1% 7.0%

33.3% 12.9% 4.8% 8.8% 0.8% 29.1% 4.3% 6.1%1Q 2013*

1Q 2014*

+7%

631

+9%

678

(*) As % of total revenues

-3% +10%-4% -15%n.a. -4% +3%

** Constant Currency

Group results (€m)

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Expenses 1Q 2013

Purchases Staff Costs External Services &

Other

Football Expenses 1Q 2014

595

572

(15)

(11)

(9.2)

13

(35)

Focus on efficiency & cost control

-13% -8.3% -5.0% +7.5%

1Q 2013 1Q 2014

81 73

4946

Spain International

130 119

-8.3%

-6.5%

-9.5%

Opex reduction

Staff costs (€m)

-3.9%

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1Q 13 1Q 14 1Q 14 (ex-FX)

62

46

60

Santillana

Source: Santillana’s Market Research, 2013 (all except Mexico – 2012)

1Q 13 1Q 14 1Q 14 (ex-FX)

200171

206

EBITDARevenues

Latam revenues as % of total revenues

1Q 2014 1Q 2013

Textbooks

Position Market Share

Spain 19,3% 1

Brazil 19,9% 1

Mexico 17,4% 1

Argentina 27,6% 1

Chile 38,8% 1

Colombia 17,2% 1

Portugal 7,1% 3

Recent performance (€m) Digital development – learning systems

Market position Geographical position

COMPARTIR Schools Students

Total 711 253,178

UNO Schools Students

Brazil 329 116.591Colombia 73 24.989Mexico 130.000

-14.7% +2.7% -25.5% -2.6%

Spain4%

Portugal0%

Brazil38%

Mexico7%

Colombia6%

Chile12%

Argentina9%

Other24%

Spain3%

Portugal0%

Brazil40%

Meico6%

Colombia6%

Chile10%

Argentina11%

Other24%

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Radio

Source: EGM November 2013

1Q 2013

Latam revenues as % of total revenues

Spain61%

Latam39%

1TQ2014

Spain75%

Latam43%

Recent performance (€m)

Market position

Geographical position

1Q 13 1Q 14 1Q 14 (ex-FX)

3

67

1Q 13 1Q 14 1Q 14 (ex-FX)

70 66 71

EBITDARevenues

-5.3% +1.7% +64.2% +92.8%

Spain International

Listeners Oyentes

Thousand listeners 2013 Position Share

Colombia 10.772 1 37,2%Chile 2.137 1 45,9%México 1.397 3 14,0%Argentina 1.122 4 18,5%Costa Rica 156 4 7,1%USA - Miami 102 9 2,5%USA - Los Ángeles 70 4 8,2%

Source: ECAR (Colombia), IPSOS (Chile), INRA (Mexico), IBOPE (Argentina)

Listeners

Thousand listeners 1Q 2014 Position Share

Generalist Radio 4.688 1 38,6%Cadena SER 4.688 38,6%Musical radio 7.796 1 62,1%40 Principales 3.578 28,5%Dial 2.281 18,2%Máxima FM 770 6,1%M80 612 4,9%Radiolé 555 4,4%Total 12.484

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Radio (Digital development)

Online audience evolution

Online radio listening hours (million hours)

1Q 13 1Q 14

7.4 7.9

Spain

+6.6%

Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14

13 13 14 14 14 13 14 16 16 14 16 16 18

25 28 28 26 28 27 2629 28 27

29 2630

Spain International

1Q 13 1Q 14

7.69.6

International

+26.4%

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Press

Source: OJD March 2014

-2.0%

EBITDARevenues

-13.7%

2010 2011 2012 2013 1Q 14

10.313.4

19.9

25.528.9

Market position

Digital advertising / total advertising (%)

Digital development

Recent Performance (€m)

PRISA ABC El Mundo

7.1%6.8%

1.3%

Digital advertising (% growth)

Source: AEDE March 2014

1Q 13 1Q 14

3.22.8

1Q 13 1Q 14

67 65

El País31%

Mundo17%

ABC15%

Razón10%

Vanguardia16%

Periódico10%

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Media Capital

Source: Gfk. Audience share for 1Q 2014

+1.5%

EBITDARevenues

TVI24.3%

RTP115.4%

RTP22.0%SIC

19.7%

Rest38.5%

24 hours Prime time

+42.5%

Recent performance (€m)

Market position

1Q 13 1Q 14

4

6

1Q 13 1Q 14

39 40

Advertising revenues evolution (%)

TVI26.9%

RTP114.1%

RTP21.7%

SIC24.3%

Rest32.9%

1Q13 2Q13 3Q13 4Q13E 1Q14

-11.6

-19.0

-0.4

3.2 5.3

Media Capital advertising

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Canal+

Source: internal estimates (1Q 2014)

EBITDARevenues

-96.1%

Subscribers

Canal+43%

Ono21%

Imagenio19%

GolTV6%

Rest11%

Recent performance Digital development – YOMVI users

-2.7%

Market position Key Performance Indicators

1Q 2014

Dec 2013

Satellite subscribers (‘000s) 1.632 1,621

Average ARPU (€) 43.5 42.7

Churn 16.5% 18.0%

iPlus (subscribers) 649,214 630,005

iPlus (penetration) 40% 39%

Yomvi (‘000s users DTH) 541 470

Yomvi (penetration) 33.2% 29%

Yomvi (downloads) 4.4m 4.6m

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

346 347 329278 257

339

414444 452 470

517 512541

14 16 15 14 22 18 22 28 29 28 32 32 37

Satellite OTT

2013 2014

1Q 13 1Q 14

16

11Q 13 1Q 14

300 292

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Cash Flow generation & adjusted net debt position


Grupo Prisa Net Debt (€m)

€6m Cash interest

€19m PIK Interest

€8m Accrued unpaid interest

€5m DLJ preferred dividend

€10m Taxes paid

€9m Redundancy expenses

€16m FX impact

€12m Change in consolidation perimeter

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Cash generation at Holdco level- 1Q 2014


Cash generation at Holdco level 1Q 14 (€m)

€9m Redundancies

€2m Perimeter effect

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Canal + Transaction

Prisa has accepted an offer from Telefónica for the purchase of Prisa´s 56% stake in Canal+

Price of 725 million euros Subject to final agreement of the SPA including price adjustments to be negotiated 30 days maximum period starting May 7th to finalize negotiations of final contract

Mediaset España has a right of first refusal and tag along Rights could be exercised during the 15 natural days following the signing of the contract

The transaction is subject to certain approvals Non-opposition from a group of core lenders

Up to 20 business days from signing Antitrust authorities

Expected to last a minimum of 12 months from signing

KEY TERMS

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Conclusions

1. Focus on operating improvement and growth

2. PRISA to benefit if macro recovery in Spain and Portugal consolidates

3. Latam to maintain its positive trend, but FX remains volatile

4. Digital learning Systems transforming the education business and contributing to growth

5. Continued effort in cost control with strong operating leverage

6. Execution of debt reduction plan

THANK YOU.

MARCH 2014 RESULTS PRESENTATION Madrid, 2014

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