Strategy

2021 Strategic repositioning

Major business model de-risking path.

The positive results, the good business outlook and the further improvement in operating performance and cash generation capacity, paint a picture of a very solid Group, allowing it to look forward with greater confidence to the results achievable in the new year, despite the recent challenges posed by the increase in energy prices and the purchase of raw materials, paper first.

From a strategic point of view, the Group will continue to strengthen its core business and therefore its leadership in the Books Area, increasing its relevance and influence on the overall Group business. This path will see Mondadori both expand horizontally through entry into new segments of book publishing, including contiguous areas, and continue and consolidate the process of vertical integration launched through the recent acquisitions in the field of book promotion and distribution.

Mondadori will concurrently continue to develop its digital skills and range of products, and to rationalize its non-strategic activities, also through M&As.

Outlook 2022

FY2022 Targets

• Economic targets
  • high-single digit increase in revenue
  • adjusted EBITDA up by or more than 25%.
  • Net profit expected to grow double-digit.

• Cash Flow and Net Financial Position – significant cash generation capacity confirmed:
  • Ordinary Cash Flow in line with 2021
  • Free Cash Flow in the region of €40/45 million before dividend payout
  • Group Net Debt (IFRS16) at 1.3x Adjusted EBITDA.

• Dividend Policy 2022-2024:

distribution of 40% of Ordinary Cash Flow per year, maintaining a minimum floor equal to the Dividend Per Share of 2021 (€8,5 cents).