Annual Report on Activities, Governance and Corporate

Transcription

2
Relevant data on the Telecinco Group
RELEVANT DATA
Corporate Governance
Board of Directors
Mr. ALBERTO CARULLO
Antenna Division
D. Alejandro Echevarría Busquet, Chairman
Mr. ALVARO AUGUSTIN
D. Paolo Vasile
CEO of Telecinco Cinema
D. Giuseppe Tringali
Mr. JESÚS Mª BAUTISTA
D. Giuliano Adreani
Director of Business Development Atlas and Multiplatform
D. Pier Silvio Berlusconi
Mr. EUGENIO FERNÁNDEZ
D. Fedele Confalonieri
Technology Division
D. Marco Giordani
Mr. LUIS EXPÓSITO
D. Alfredo Messina
Human Resources and Services Division
D. José Mª Bergareche Busquet
Mr. JAVIER URÍA
D. Ángel Durández Adeva
Finance Division
D. Miguel Iraburu Elizondo
Mr. PEDRO PIQUERAS
D. José Ramón Álvarez-Rendueles
General Director of News Programming
D. Borja Prado Eulate
Mr. GHISLAIN BARROIS
Director 3rd Party Production Ajena y TDT
Executive Committee
Mr. LUCA GIAMMATTEO
Head of Investor Relations Department
D. Alejandro Echevarría Busquet
Mr. DÁMASO QUINTANA
D. Paolo Vasile
Deputy Director General of Management and Operations
D. Giuseppe Tringali
D. Fedele Confalonieri
PUBLIESPAÑA
D. Giuliano Adreani
Mr. GIUSEPPE SILVESTRONI
D. José Mª Bergareche Busquet
General Manager Sales
D. Miguel Iraburu Elizondo
Mr. FRANCISCO ALUM
General Manager Marketing and Sales
Management Team
Mr. SALVATORE CHIRIATTI
General Director Publimedia
TELECINCO
Mr. GASPAR MAYOR
Mr. PAOLO VASILE
Sales Director Publimedia
Chief Executive Officer Television
Mr. OSCAR GONZÁLEZ
Mr. GIUSEPPE TRINGALI
Sales Manager
Chief Executive Officer Advertising
Mr. MIGUEL ÁNGEL JIMÉNEZ
Mr. MASSIMO MUSOLINO
Director of Special Initiatives
Management & Operations Director
Mr. JOSÉ LUIS VILLA ALEGRE
Mr. MANUEL VILLANUEVA
Media Centre Manager
Director of Content
Mr. LÁZARO GARCÍA
Mr. MARIO RODRÍGUEZ VALDERAS
Corporate Marketing Manager
Secretary General
Ms. CRISTINA PANIZZA
Ms. MIRTA DRAGO
Sales Operations and Services Manager
Head of Communications & External Relations
Telecinco Annual Report on Activities, Governance and Corporate Responsibility 2007
3
Structure of the Telecinco Group
GESTEVISIÓN TELECINCO
GRUPO
EDITORIAL
MEDIACINCO
CARTERA
TELECINCO
CINEMA
ATLAS
ESPAÑA
PUBLIESPAÑA
FACTORÍA FICCIÓN
CONECTA CINCO
APROK IMAGEN
ADVANCED MEDIA
PREMIERE
COMERADISA
MI CARTERA
PUBLIMEDIA
KULTEPERALIA
CINEMATEXT MEDIA
ATLAS MEDIA
PUBLIECI
ALBA ADRIÁTICA
CINEMATEXT ITALIA
ATLAS PAÍS VASCO
SUPER 9 TV
EDAM COOP. (*)
MANDARINA
CONSOLIDATED USING
LINE BY LINE CONSOLIDATION
CONSOLIDATED USING COST METHOD
CONSOLIDATED USING
THE EQUITY METHOD
LA FÁBRICA DE LA TELE
(*) JOINED THE GROUP
ON 31/7/2007
HUMAN RESOURCES
2006
2007
Average workforce (number of employees)
1,184
1,195
37.75(1)
38.14
Average age (years)
Average time with the Group(years)
9.72
10.37
Percentage of female workers
45.61%
45.62%
Percentage of permanent employees
98.20%
97.07%
(1) The 2006 Annual Report identifies the average age as 38 due to the rounding of the figure, This year’s report is more exact and uses decimals.
4
History of Telecinco
repeated and consolidated its undisputed leadership in 2005
and 2006.
1990. Telecinco begins broadcasting on the 3rd of March.
1995. Launch of the series “Médico de Familia”, the blueprint
for content based on in-house production of quality fiction
series.
1995. Telecinco establishes the foundation for a late-night
viewing habit with the premiere of “Esta noche cruzamos el
Mississippi”. Subsequently succeeded by “Crónicas Marcianas”, consolidating the ratings leadership in this timeslot.
1996. Grupo Correo (currently Vocento) becomes a leading
shareholder.
1998. Telecinco implements the pioneer Digital Broadcast of
Telecinco News, the first and most modern in Spain, and creates Agencia Atlas.
2005. Telecinco inaugurates the Central Control and Broadcasting Centre in July, using the latest and most advanced technologies. The station completed the digitalization project
started six years earlier with Digital Production in a further
step towards the final establishment of Digital Terrestrial Television (DTT). This technology will allow Telecinco to broadcast
multiplatform content, DTT, theme channels mobile television
and the Internet.
2005. Telecinco launches, on 30 November, the broadcast of
two DTT channels: Telecinco Estrellas and Telecinco Sport.
2007. Telecinco joins the international elite in multimedia content with the acquisition of Endemol, the world’s largest producer with a presence in 25 countries.
2000. Telecinco launches the social project “12 months, 12
clauses”, becoming the first station to dedicate its potential
to increasing awareness among viewers of 12 specific social
causes each year.
2000. Telecinco debuts reality TV in Spain with the premiere
of “Gran Hermano”, the television programme that marked a
new beginning in the way we make and watch television.
2004. Telecinco acquires the rights to rebroadcast Formula 1,
which has become one of the top rated spectator sports with
a huge following in Spain.
2004. Telecinco goes public and just six months later is chosen to be included in the selective Ibex 35 index. Publiespaña
becomes part of the Telecinco group to handle the marketing
aspects of the initial public offering.
2004. Telecinco snatches TVE1’s historic audience leadership,
becoming the top rated television station in Spain. Telecinco
5
The Telecinco Share
2005
2006
2007
Earnings per Share 1.18 €
1.28 €
1.45 €
Gross Dividend per Share
1.18 €
1.28 €
1.30 €
100.00%
100.00%
89.66%
5.76%
6.09%
9.00%
Pay-Out Ratio: Dividend/Net Profit
Dividend Yield: Dividend/Share Price
SHAREHOLDER STRUCTURE
TELECINCO MARKET CAP SINCE IPO
MARKET CAPITALISATION (MILLIONS OF €)
MEDIASET 50.14%
OPV
2.503
JUN 04
2.960
DEC 04
3.744
DEC 05
5.258
DEC 06
5.323
DEC 07
+72,5%
4.319
VOCENTO 13.0%
TREASURY
SHARES 1.26%
REST FREE-FLOAT
35.6%
2007 MARKET PERFORMANCE MEDIA COMPANIES
MARKET PERFORMANCE 24 JUNE 2004 - 28 DECEMBER 2007
120
220
110
200
180
100
160
90
140
80
120
70
100
TL5
A3TV
SOG
IBEX
VOC
06/12/07
15/11/07
25/10/07
04/10/07
13/09/07
23/08/07
02/08/07
12/07/07
21/06/07
31/05/07
10/05/07
18/04/07
26/03/07
05/03/07
12/02/07
60
22/01/07
80
50
29/12/06
60
JUN 04 SEP 04 DEC 04 FEB 05 MAY 05 JUL 05 OCT 05 JAN 06 MAR 06 JUN 06 SEP 06 NOV 06 FEB 07 APR 07 JUL 07 OCT 07 DEC 07
TL5
A3TV
SOG
IBEX35
VOCENTO
6
Earnings Performance
FREE CASH FLOW (MILLIONS €)
2007
TOTAL NET INCOME (MILLIONS €)
2006
2007
1,081.64
2006
34.2%
33.7%
2005
33.0%
997.55
369.8
336.2
307.3
Conversion in FCF
2005
931.11
DIVIDENDS (MILLIONS €)
OPERATING COSTS (MILLIONS €)
2007
2007
596.4
2006
2006
557.9
2005
2005
517.8
89.7%
100%
100%
320.63
314.25
290.33
Pay Out
NET FINANCIAL POSITION (MILLIONS €)
GROSS OPERATING INCOME EBITDA (MILLIONS €)
2007
2006
2005
45.4%
44.6%
45.5%
490.6
445.3
423.3
2007
13.2
2006
396.1
2005
355.8
EBITDA/Total Net Income
NET INVESTMENTS 2007: €185.25 MILLIONS
FICTION TV RIGHTS
53.7%
NET PROFIT (MILLIONS €)
2007
2006
2005
32.3%
31.5%
31.2%
353.1
314.2
290.3
Net Profit / Total Net Income
FIXED ASSETS
6.2%
COPRODUCTION /
DISTRIBUTION
13.8%
NON FICTION TV RIGHTS
26.3%
7
Viewers
This was the fourth consecutive year in which the station has led the market in total audience share with 20.3%, consolidating its
leadership, maintaining the top position for 22 consecutive months and widening its lead over its closest competitors.
SHARE, 24 HOURS, TOTAL INDIVIDUALS IN %
AVERAGE DAILY VIEWERS (SHARE) IN 2007
Telecinco
20.3
Antena 3
17.4
20.80
21.0%
19.0%
TVE1
17.2
FORTA
14.5
La 2
4.6
Cuatro
7.7
La Sexta
4
Temáticas
11.3
Locales
2.9
18.20
18.30
18.00
17.90
13.0%
14.60
14.60
21.10
20.20
20.10
17.40
17.30
17.50
14.60
APR
19.00
18.00
17.60
16.60
17.50
15.0%
14.40
20.50
20.00
18.20
17.0%
21.50
20.70
20.90
19.90
16.50
16.30
14.20
14.40
14.10
MAY
JUN
JUL
17.00
14.60
19.00
17.10
16.00
14.30
16.20
14.40
17.20
17.60
16.90
17.10
14.30
14.80
11.0%
9.0%
7.0%
5.0%
3.0%
JAN
FEB
MAR
TL5
A3TV
TVE1
FORTA
AUG
SEP
OCT
CUATRO
NOV
DEC
LA SEXTA
AUDIENCE SHARES IN 2007
Telecinco
Antena 3
TVE1
FORTA
La 2
Cuatro
La Sexta Temáticas
Locales
All day
20.3
17.4
17.2
14.5
4.6
7.7
4
11.3
2.9
Morning
17.7
18.1
17
13.7
5.7
7.2
3.1
14.2
3.1
Afternoon
19.9
19.1
18.6
16.3
5
6.5
3.9
8.6
2
Evening 21
16.7
18.4
14.1
4.2
6.9
3.5
12.2
2.9
Prime Time 20:30
20.9
16.8
16.8
15
4.1
8
4.6
10.8
2.8
Late night
23.1
17.7
13.4
11
4.1
10.6
4.4
11.3
4.3
Day time
20
17.7
17.4
14.2
4.9
7.5
3.7
11.5
3
content
2 relevant data on the Telecinco Group
10 letters from the chairman and the chief executive officers
17 group structure at 31 december 2007
25 financial highlights
31 Telecinco shares
39 growth strategy
57 corporate governance
67 corporate social responsibility
95 annex
Alejandro Echevarría, Chairman
Letters from the chairman and the chief executive officers
11
Being the only Spanish network to surpass 20% in audience share, leading the market for four consecutive
years and establishing record-breaking differences with our competitors. To become the first national
television station to surpass the 1,000 million euro mark in advertising income. Remain as one of the
most profitable television broadcasters in Europe with net profit of 353.1 million euros and an increase
of 12.3% over the previous year. Expand beyond our borders with major operations like the participation
in the acquisition of Endemol and the entrance into the American market - in 2008- through the channel
CaribeVisión. Achieve, as few companies have been able, a commitment with workers despite the
continuing validity of the Collective Bargaining Agreement in order to maintain a climate of social peace.
All of this would be a dream for any broadcaster, but for Telecinco in 2007 it is the reality.
The Spanish media landscape continues to evolve and despite this context Telecinco was once again able
to maintain its leadership commitment to its viewers and shareholders, across all parameters that measure
its management, thanks to the impeccable efforts of our people, to whom I would like to express my most
profound gratitude.
In addition to our daily business activities as a communications media company, we have also remained
active in our commitment to social action through the “12 months, 12 clauses” initiative, through which
we strive to increase the awareness of viewers in various matters relating to culture, health care, society
and solidarity. Thanks to this initiative, we have once again positioned Telecinco as a point of reference
in the field of Corporate Social Responsibility. In order to reinforce our commitment to CSR, in 2007 we
created the Corporate Social Responsibility and Governance Department to coordinate all of the areas
involved in the management of the company’s corporate social responsibility actions. Maintaining business
ethics and continuing to contribute to social development and environmental protection has earned us
various awards throughout the year from different organizations, ranging from an investment bank to
social entities and foundations. All of our actions in these fields are fully explained in the Annual Corporate
Social Responsibility Report, which together with the Annual Report and Financial Statements describe the
primary activities of the company and are all, once again, characterised by their rigor and transparency.
We hope that our viewers and shareholders are equally satisfied by our performance in 2007 as everyone
here at Telecinco is. We hope to continue to grow together, with the solid foundation that we have already
established, in the construction of the Telecinco Group of the future, once again the leaders, but always
a unique.
Paolo Vasile, Chief Executive Officer
13
When in last year’s Annual Report we expressed uncertainty regarding the changing media landscape
we were not wrong. Since then the market has been subject to a high degree of complexity due to both
internal and external factors.
2007 brought new challenges, but the response of Telecinco was firm and once again we have
consolidated our leadership position. Our success has been based on three key aspects: our emphasis on
professionalisation, the loyalty of our viewers and the trust of our shareholders.
Our viewers and the companies that choose us for their investments and help us to grow, thanks to their
trust and confidence, are the true drivers that have allowed us to continue offering our very best service
to the market.
This trust is backed up by Telecinco’s strong emphasis on quality. The broadcasting of innovative content
that has attracted the interest of viewers, together with our station’s consolidated series and programmes,
have made Telecinco the most solid television network in the current media landscape.
Our programming this year continued to show its strength and stability with a high share across all
timeslots. Once again in 2007, Telecinco was the only channel with an audience share of over 20% in both
the daytime and prime time, maintaining our position as the leading television station by audience share
in Spain. This success across all timeslots has widened the gap with our competitors, despite a much more
complex market environment.
There can be no doubt that we have amply met the objective we established in 2006 when, faced with the
revolution of the industry, we set our eyes on “jumping forward”. In the end, we did not jump, we made
a huge leap and the results obtained are the best reward for the daily efforts of a professional team that
have treated the changes in the sector as opportunities for growth and improvement.
For all of this, we would like to express our sincere gratitude to all of those people who, like us, have
believed in the business model that has made us one of the most innovative and profitable television
broadcasters in Europe.
Giuseppe Tringali, Chief Executive Officer
15
2007 was an historic year for Telecinco and a key time in the Spanish audiovisual sector with the different
television stations moving to establish their positions in the market. Within this context Telecinco was able
to consolidate its leadership and even widen the gap with its nearest competitors thanks to the capacity,
dedication and enthusiasm of the professionals that day to day make Telecinco what it is.
From Telecinco we have worked with care and dedication to offer viewers the best in news and entertainment.
In Publiespaña we have applied the creativity needed to continue to innovate in the design and sale of
advertising. And everyone, throughout the Group, has come together and combined our forces to provide
value to our shareholders and the highest profitability of any company in our industry in Spain.
Our management model has demonstrated the agility needed to face any type of scenario. We anticipated
a difficult market with new strategies that have made Telecinco the only commercial television with an
audience share of over 20% and the first television station to surpass the 1,000 million euro mark for
advertising income, with a market share that has grown to 30.9%, confirming us as the most competitive
company in the industry.
Telecinco was able to take advantage of the new panorama, creating new business lines to continue
growing through the commercialisation of different formats, such as mobile telephones and Internet. This
philosophy has given birth to Advanced Media, within the structure of Publimedia Gestión, the Publiespaña
subsidiary that surpassed 30 million euros in sales in 2007.
These figures clearly demonstrate our strength in the national market and have allowed us to continue
to increase the value of our company. We have also increased our international presence through the
acquisition of Endemol in 2007. This transaction placed Telecinco among the worldwide elite in television
content. We are very excited about the possibilities provided by this operation, and it will act as further
motivation to continue to excel in coming years.
group structure
at 31 december
2007
18
Group structure at 31 december 2007
Telecinco group structure
Gestevisión Telecinco, S.A. (parent company) was founded in
Madrid on 10 March 1989. Its corporate object is the indirect
management of Public Service Television in accordance with
the terms of the 1989 State concession and other operations
related to said management.
Gestevisión Telecinco S.A. became a publicly traded company
on 24 June 2004, and is listed on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges. On 3 January 2005, the
Company was selected to be included in the IBEX-35 index.
Gestevisión Telecinco heads a group of dependent companies which form the Telecinco group. (hereinafter the Group
or Telecinco).
Companies using full
(line-by-line) consolidation
Companies in which Telecinco holds 50% or more of the
voting rights or otherwise maintains effective control are
considered as dependent companies and integrated using full
consolidation. These companies are:
GESTEVISIÓN TELECINCO
GRUPO
EDITORIAL
MEDIACINCO
CARTERA
TELECINCO
CINEMA
ATLAS
ESPAÑA
PUBLIESPAÑA
FACTORÍA FICCIÓN
CONECTA CINCO
APROK IMAGEN
ADVANCED MEDIA
PREMIERE
COMERADISA
MI CARTERA
PUBLIMEDIA
KULTEPERALIA
CINEMATEXT MEDIA
ATLAS MEDIA
PUBLIECI
ALBA ADRIÁTICA
CINEMATEXT ITALIA
ATLAS PAÍS VASCO
SUPER 9 TV
EDAM COOP. (*)
MANDARINA
CONSOLIDATED USING
LINE BY LINE CONSOLIDATION
CONSOLIDATED USING COST METHOD
CONSOLIDATED USING
THE EQUITY METHOD
LA FÁBRICA DE LA TELE
(*) JOINED THE GROUP
ON 31/7/2007
100% held by Gestevisión Telecinco S.A.
19
name from Europortal Jumpy, S.A., on 5 November 2007 and
is currently known as Conecta 5 Telecinco, S.A.U.
Grupo Editorial Tele 5, S.A.U.
Active in the acquisition and distribution of audiovisual recordings, phonograms and graphic material, artistic representation, promotion of shows and the direction, production,
distribution and marketing of publications and the graphic
materials of the various musicals of the station.
Agencia de Televisión Latino-Americana de Servicios y
Noticias España, S.A.U.
The subsidiary is active in news agency activities in any media:
print, radio, television and audiovisual media in general. Production, recording, postproduction and any activities required
for any type of broadcasting of news programmes and audiovisual work in general.
Mediacinco Cartera, S.L. (75%)
This company provides accounting, financial, tax, civil, mercantile, labour and administrative services and consulting for
group companies.
100% held through Agencia de Televisión
Latino-Americana de Servicios de Noticias
España, S.A.U.
Atlas Media, S.A.U.
The subsidiary is active in news agency activities in any media,
as well as the production, recording, postproduction and any
activities required for any type of broadcasting of news programmes and audiovisual work in general.
Telecinco Cinema S.A.U.
The subsidiary provides television broadcast services using digital technologies; research, development and marketing of
new technologies relating to telecommunications and any
other activities as may be required for any other type of television broadcast; intermediation in the audiovisual rights
markets; organisation, production and broadcast of television
shows and programmes of any type.
Agencia de Televisión Latino-Americana de Servicios y
Noticias País Vasco, S.A.U.
Publiespaña, S.A.U.
100% held through Publiespaña, S.A.U.
Exclusive Telecinco agent for the exploitation of the station’s
advertising resources. Active in the production and execution
of advertising projects and activities related to marketing,
merchandising, and telesales; the organisation and production
of cultural, sports, musical and any other type of event and
providing advisory, analysis and management services for the
above activities.
Cinematext Media, S.A. (60%)
This company’s primary activity is the production of subtitles
for the film industry, video and television. Provides services to
Telecinco and other channels.
Conecta 5 Telecinco, S.A.U.
The main activity of this company is the exploitation of audiovisual content over the Internet. The company changed its
Active in news agency activities in any media.
Mi Cartera Media, S.A.U.
This subsidiary’s primary activity is multimedia operations
with financial and economic content in all formats.
Publimedia Gestión, S.A.U.
Its field of activities includes the complete production of audiovisual works and recordings; the production and execution
of advertising projects; the creation, acquisition, marketing
and exploitation of brands, patents, and any other type of
copyright or other intellectual or industrial rights; the organization and production of events and the provision of advisory,
analysis and management services for any procedure relating
to the above activities.
Advanced Media, S.A.U.
Inactive since January 2004, the subsidiary was reactivated on
1 November 2007.
Their main activities include the direction, production and
publication in any format of books, newspapers, magazines,
20
etc.; the production and execution of advertising projects and
related tasks; the performance of marketing, merchandising
and related activities for audiovisual works and intermediation
in the markets for intellectual and industrial property rights of
any class.
60% held through Cinematext Media, S.A.
Cinematext Media Italia, S.r.L.
The main activities of this company are the doubling and subtitling of audiovisual works and recordings.
Producciones Mandarina, S.L. (30%)
This affiliate is active in the creation, development, production
and commercial operation of audiovisual content in fiction,
entertainment, etc., in any format.
La Fábrica de la Tele, S.L. (30%)
This affiliate is active in the creation, development, production
and commercial operation of audiovisual content.
Indirectly held through Publiespaña, S.A.U.
Publieci Televisión, S.A. (50%)
Company’s consolidated using
the equity method
Companies in which Telecinco holds between 20% and 50%
of the voting rights and has significant influence over management are considered as affiliated companies and integrated
using the equity method. These companies are:
Directly held through Gestevision Telecinco,
S.A.
Premiere Megaplex, S.A. (50%)
This affiliate is active in the sale of products and services for
the end consumer using broadcast television systems. Operates the telesales activities of Telecinco.
Indirectly held through Mediacinco Cartera,
S.L.
Edam Acquisition Holding I Cooperative U.A. (33%)
Channelling of the investments of the Consortium formed by
Goldman Sachs Capital Partners, Cyrte Fund II B.V. and Mediacinco Cartera S.L. in Endemol N.V., & Co. active in the creation, production and exploitation of content for television and
other audiovisual platforms.
This affiliate is a multiplex cinema operator and producer of
audiovisual and interactive content for television.
Other companies
Canal Factoría de Ficción, S.A. (40%)
Comeradisa (10%)
Their main activities focus on the creation, production, and
distribution of audiovisual works on any media. The dissolution of the company was approved in September 2007
Their main activity is the operation of digital radio in collaboration with Vocento.
Indirectly held through Agencia de Televisión
Latino-Americana de Servicios Y Noticias
España, S.A.U.
Kulteperalia, S.L. (15%)
Producers involved in the direction, distribution and marketing
of audiovisual programmes in general.
Alba Adriática, S.L. (15%)
Aprok Imagen, S.L. (40%)
News agency providing services primarily to print and audiovisual media.
Producers involved in the direction, distribution and marketing
of audiovisual programmes in general.
21
Super Nueve Televisión, S.A. (25%)
This affiliate is active in the direction, production, marketing
and acquisition of programmes for dissemination and/or
broadcast on local television.
The organisational flow charts for the parent company, Gestevisión Telecinco, and primary subsidiaries are included below.
Organisational flowchart for Gestevisión Telecinco
ALEJANDRO ECHEVARRÍA
CHAIRMAN
Mario Rodríguez
Secretary General
PAOLO VASILE
CEO Television
Giuseppe Tringali
CEO Advertising
Mirta drago
Head of Comunication & External Relations
Manuel Villanueva
General Manager Content
alberto carullo
Antenna Division
J. Mª Bautista
Conecta 5 Telecinco
CORPORATE AREAS (PROVIDING SERVICES TO
THE TV AND ADVERTISING BUSINESSES)
massimo musolino
Director of Management & Operations
ghislain barrois
3RD Party
Production & T.D.T.
ÁLVARO augustín
Telecinco Cinema
eUGENIO
Fernández
IT Division
Luis Expósito
HR and Services
Division
Javier Uría
Financial
Division
FUNCTIONAL TV AREAS
22
Organisational flowchart for Publiespaña
Alejandro Echevarría
Chairman
Giuseppe Tringali
Chief Executive Officer
sALVATORE chiriatti
General Manager Publimedia
Óscar
González
Cusotmer Sales
Director
Giuseppe
Silvestroni
Sales
Management
Giuseppe Silvestroni
General Manager Sales
Miguel A.
Jiménez
Special Initiatives
Management
José Luis Villa
Alegre
Facilaties
Management
Lázaro García
Marketing
Management
Francisco Alum
General Manager Marketing and Sales Operations
Cristina
Panizza
Sales & Service
Operations
Management
fRANCESCA
guadalupi
Deputy CEO
Organisational flowchart for Atlas España
Board of Directors
Alejandro Echevarría
Chairman
Jesús maría Bautista
General Management of Business Development
Pedro Piqueras
General Manager Of News Programmes
Javier
Hernández
H. R. Division
23
CONTRIBUTION TO EARNINGS (%)
2006
2007
Gestevisión Telecinco, S.A.
71.62
Gestevisión Telecinco, S.A.
78.38
Grupo Editorial Tele5, S.A.U.
0.88
Grupo Editorial Tele5, S.A.U.
1.03
Atlas España, S.A.U.
1.78
Atlas España, S.A.U.
1.78
22.17
22.05
0.32
0.27
Publimedia, S.A.U.
1.54
Publimedia, S.A.U.
1.67
Rest (1)
1.69
Rest (2)
(5.18)
TOTAL
100%
TOTAL
100%
(1) Estudios Picasso, Cinematext Media, S.A., Cinematext Italia, S.R.L., Atlas Media, S.A.U., Atlas País Vasco, S.A.U., Advanced Media, S.A.U., Red de Televisión Digital Madrid, S.A.U
and subsidiaries.
(2) Telecinco Cinema, S.A.U., Cinematext Media, S.A., Conecta5 Telecinco, S.A.U., Mediacinco Cartera, S.L., Atlas Media, S.A.U., Atlas País Vasco, S.A.U., Advanced Media, S.A.U.,
Cinematext Italia, S.R.L. and subsidiaries.
financial
highlights
26
Financial highlights
FINANCIAL HIGHLIGHTS
World economic environment
The world economy in the second half of 2007 was hard hit
by the turbulence in the financial markets in response to the
sudden appearance of a lack of confidence derived from the
mass packaging and aggressive distribution of high risk assets
such as the now infamous subprime mortgage loans. This has
resulted in a sharp increase in risk premiums, the contraction
of credit to both individuals and companies and a sudden
dearth of the leveraged buyouts that had become so common
in recent years. In response, monetary authorities on both sides of the Atlantic rushed to inject liquidity into the markets to
offset the most total lack of liquidity derived from the uncertainty and mistrust existing among market agents.
Fortunately, Spain’s financial institutions do not seem to have
been contaminated by this turbulence which, as can be seen
from the recently released earnings statements, has clearly
had a sharp impact on the earnings of many large banks in
the United States and Europe.
Fears of a recession in the United States intensified towards
the end of 2007 in response to the collapse of the real estate
market following the sharp rate hikes from 2002 to 2006, the
granting of mortgage loans for greater than the home value
and the above-mentioned credit crisis. In this context, the US
economy recorded a sharp deceleration in the fourth quarter,
registering a modest 0.60% growth in comparison with the
4.90% recorded in the previous quarter. This led the federal
reserve to slash interest rates to the current 3% and, at the
time of preparation of this Annual Report, we would not rule
out further rate cuts.
On our own side of the Atlantic, European economic growth
in 2007 shows a progressive deceleration in quarterly figures
on a year-on-year basis. Over the year, from the first quarter
to the last, economic growth in Europe dropped almost a full
point while inflation rose significantly from 1.9% in 2006 to
3.2% in January of 2008.
Looking at the Spanish situation, on the date of preparation
of this Report, available data show that the Spanish economy continued to benefit from the prolonged expansive
cycle in the last quarter of 2007 with 0.8% growth, closing
the year with GDP growth of 3.8% (3.9% in 2006). Despite
these figures, available data for January 2008 show a deceleration in consumption, job creation, automobile sales and,
very sharply, in the real estate sector. This points to 2008
being a year of slower economic growth than in previous
years.
All of these factors reflect a macroeconomic outlook for 2008
that invites caution and prudence and leave barely any room
for optimism. The two primary drivers of Spanish economic
growth, as regards both job creation and GDP, are specifically
real estate and consumption, both of which are weakening.
Given the very close correlation between economic growth
and advertising spend, we will need to maintain a close watch
on the advertising market throughout 2008.
Strengthening of the leadership of Telecinco
during a year of change in the economic cycle
The strength of Telecinco’s leadership continued to grow in
2007, widening the station’s lead over the rest of the competition despite the downturn in the economy in the second
half of the year. The crisis in the international financial markets
point to slower growth and a sharp realignment in some of
the most important areas of our economy.
Within this changing environment and increased global uncertainty, Telecinco was able to maintain its successful business model based on efficient, flexible and innovative exploitation of advertising space and a programming grid that
is strongly aligned with the tastes of the public. Telecinco
was also able to efficiently combine the traditional programming that has been a public favourite for many years with
new and renovated formats to complement our more classic
products.
The success of this business model can be clearly seen from
our audience figures. Telecinco continues to be the preferred
channel for Spanish viewers, widening the distance from our
nearest competitors in 2007 both in total share and in the leading dayparts that are the most desired by advertisers.
2007 was also the year in which Telecinco moved beyond
the borders of the Spanish market, a very important move
given the difficulty in reproducing the television operation
business models in other countries, which is inherent in the
sector, and the lack of attractive investment opportunities
with an appropriate return on investment such as those in
the current markets.
Also in 2007, Mediacinco Cartera S.L., 75% held by Telecinco, acquired an equity stake in Endemol, the world’s largest
producer of television content. The acquisition was made in
collaboration with Telecinco’s leading shareholder Mediaset
following a highly competitive bidding process organised by
the previous owner. The new shareholder structure of Endemol is divided equally among Mediacinco Cartera, S.L., Goldman Sachs Capital Partners VI L.P. and Cyrte Fund II B.V., a
Dutch hedge fund.
27
price leadership. Once again in 2007, the station is the price
leader in the market with a wide and growing gap over the
rest of the competitors. This price leadership relies on the service capacity and wider range of products offered by the concessionaire to advertisers, providing them with an excellent
commercial target, a segment in which Telecinco is again the
absolute leader by a wide margin over the rest of the broadcasters. Once again, Telecinco was able to improve its relative
position against the rest of the leading competitors.
REVENUES
Advertising revenues Grupo Publiespaña
Other advertising income
Revenues from services
2006 (€ ‘000)
2007 (€ ‘000)
922,806
1,006,121
620
907
42,421
35,347
Other income
13,162
13,199
Total
979,009
1,055,574
OPERATING INCOME -EBIT (IN MILLIONS OF EUROS)
2005
2006
EBIT
413.3
439.6
2007
485.2
EBIT/Net Income
44.4%
44.1%
44.9%
2007
NET PROFIT (IN MILLIONS OF EUROS)
2005
2006
Net Profit
290.3
314.2
353.1
Net Profit/Net Income 31.2%
31.5%
32.6%
Income
The television advertising market in 2007 continued to expand. Although the final figure was not available at time of
this report, estimated growth was between 8% and 9%, thereby reaffirming the importance of television communications
for Spanish advertisers.
Advertising revenues of the Group, invoiced through Publiespaña S.A.U. and Publimedia Gestión S.A.U., rose 8.9% to
1,051.8 million euros thanks to the persistent confidence of
advertisers in the station’s ability to reach the most highly valued audience segments. This growth is based on Telecinco’s
28
Telecinco, the most profitable television
in europe
Telecinco’s cost structure is directly related to the station’s business model, based primarily on the strong focus on in-house
production over the acquisition of third-party rights. This gives
the station considerable control over content as well as flexibility and is largely responsible for the successful cost control
policy and the Company’s ability to achieve the highest operating margins in the sector.
OPERATING COSTS
Operating income on the group level rose 84% from 998 million euros in 2006 to 1,082 million euros in 2007.
Operating profit (EBIT) closed the year at 485.3 million euros,
a 10.4% gain over the previous year (439.6 millions). The EBIT
margin increased from 44.1% in 2006 to 44.9% in 2007, a
notable gain given the already high margin recorded in the
previous year.
2006 (€ ‘000) 2007 (€ ‘000)
Reduction in the finished goods
and works in progress
Comparing this year’s results with those for the previous year,
we can see the considerable growth recorded:
On the bottom line, net profit for the year reached 353.1 million euros, an 11% gain over the previous year making Telecinco the most profitable television broadcaster in Europe.
(97)
(1,511)
Supplies
140,209
141,933
Personnel expense
79,478
84,853
Consumption of audiovisual rights
163,715
188,084
Amortisation and depreciation
5,869
4,698
Variation in operating provisions
(168)
689
Other expense 168,971
177,646
Financial position and investments
Total operating expense
557,977
596,392
In 2007 Telecinco continued with its policy of investing in audiovisual rights, applying a careful selection for both type and content in order to sustain the ratings achieved and guarantee optimal exploitation of advertising. Similarly, Telecinco has placed
special emphasis on investment in nationally produced series.
Telecinco’s cost performance in 2007 was very satisfactory with
total operating expenses increasing by only 6.9% over the previous year. As mentioned previously this was possible largely
thanks to the station’s strategy of assuring valuable content at
a measured cost and for a reasonable time following a fruitful
association with suppliers and other key agents in the programming strategy, which positively value an association with the
leading company in the sector over the medium term.
On the other side of the ledger, the Group in 2007 recorded
significant growth in all key accounts, making it once again
the most profitable television station in Europe. This is the direct result of the station’s leadership in audience, the correct
commercial policies of Publiespaña S.A.U., and the strength of the advertising market, all within a highly competitive
business environment in which both national and regional
public television channels compete with the more recent private competitors, all of which have joined the market with
considerable financial resources for the acquisition of programming content.
Special note should be taken of the activity developed by Telecinco Cinema S.A.U. (formerly Estudios Picasso S.A.U.), a 100%
held subsidiary of Gestevisión Telecinco, S.A. that is responsible
for coproducing legally required films. Under current legislation the station must invest 5% of the operating earnings of
the concession holder in Spanish and European cinema.
All of the cinema projects have been accompanied by Telecinco’s
vocation for international exposure through the contracting of
renowned actors and directors in order to expand our sources
of operating income beyond our own borders. To this end Telecinco strives to increase the return on investment and produce films that combine quality and saleability, all under the
distinctive seal of the station.
2006 was the year of “Alatriste” and “Pan’s Labyrinth”, two
high-quality productions that obtained not only high box offi-
ce receipts and international sales, but also string recognition
from critics as well as major awards and nominations. Pan’s
Labyrinth received three Oscars in the 79th edition of the prestigious awards and was the fifth top grossing foreign film in
the history of US cinema.
2007 was the year of “The Orphanage”, coproduced by Telecinco Cinema, which was a smash hit at the box office and
widely praised by critics for its artistic value. This film is a clear
example of a marriage between quality and commercial success, something with which Telecinco fully identifies.
Although the Group generated cash flow of 369 million euros
in 2007, the net financial position of the group declined to
13.2 million euros from 396 million in 2006 in response to the
acquisition, together with Mediaset, of 75% of Endemol. Telecinco also distributed 314 million euros in dividends. In 2007
the audiovisual producer reported an 18% decline in operating
income following the stagnation of sales at 1,256 million.
TOTAL ASSETS
931.6
1,082.5
CONSOLIDATED BALANCE SHEET (MILLIONS OF EUROS)
2005
2006
Net Equity
571.2
599.0
662.5
Noncurrent Liabilities
76.0
82.5
151.4
2007
Current Liabilities
246.2
250.1
268.6
Total Liabilities
893.3
931.6
1,082.5
Direct economic value generated
and distributed
MAGNITUD
1. Economic value generated 2007 (in millions of euros)
1,081.6
2. Economic value distributed: - Operating costs* 596.4
- Taxes and minority interests 134.4
- Donations and community investments Total economic value distributed
Income statement highlights
893.3
29
3. Total retained value (1-2=3)
8.8
739.6
342
*Includes payments to suppliers, investments in rights and total wages and salaries.
CONSOLIDATED INCOME STATEMENT (MILLIONS OF EUROS)
2005
2006
2007
Net Revenues
931.1
997.5
1.081.6
Operating Costs
517.8
557.9
596.4
Net Operating Income
413.3
439.6
485.2
Earnings Before Taxes
And Minority Interests
421.5
450.6
487.4
Consolidated Net Profit
290.3
314.2
353.1
Balance sheet highlights
CONSOLIDATED BALANCE SHEET (MILLIONS OF EUROS)
2005
2006
Noncurrent Assets
318.5
294.7
2007
738.5
Current Assets
574.8
636.9
344.0
TELECINCO shares
32
Telecinco shares
TELECINCO SHARES
Leadership in a difficult environment
The international markets in 2007 were marked by a slowdown
in international economic growth resulting from the subprime
mortgage crisis in the US and the resulting lack of liquidity on
the credit markets. The impact on equity markets was negative, but not uniform. Among the major markets, the New
York Stock exchange registered the best performance in 2007,
outperforming the European equity markets as a whole. Within Europe, market performance was unequal.
In Spain, following a relatively calm start to the year are the
spectacular performance of the equity markets worldwide in
the previous year. This ended with the coming of summer and
the subprime mortgage crisis. The uncertainty regarding the
impact of the financial instability on a worldwide economy that
was what showing signs of deceleration contributed to generating a crisis of confidence and a sharp increase in volatility in
the national markets, thereby putting an end to the bull run of
the last few years.
Despite this instability, companies in 2007 closed the year with
positive figures and blue-chip stocks were not hurt excessively.
The Spanish market, in line with leading exchanges around the
world, reached another high in a run that has its origins at the
end of the 20th century and is characterized by the huge size
achieved by the markets in terms of capitalization or total value of listed companies. This new size is a clear reflection of
the confidence of society in the efficiency and strength of the
securities exchanges as an essential mechanism in the healthy
economic development of a modern economy.
2007 was the fifth straight year of annual gains for the Spanish market, consolidating its leadership position in total return among the main international markets. The benchmark
index, the IBEX35, repeatedly recorded new highs throughout
the year to close the year with a 7.3% gain according to the
2007 Market Report issued by Spain’s stock exchange holding
company, BME (Bolsa de Mercados Españoles, Informe de Mercado 2007).
straight years of strong gains. The Spanish market also closed
the year with a new high in trading volume and liquidity; it was
also a record-breaking year for IPOs and tender offers. 2007
was also a crucial year for the regulation of the European securities exchanges with the enactment of the Markets in Financial
Instruments Directive (MiFID).
INTERNATIONAL STOCK MARKET PERFORMANCE 2007
130
125
120
DAX + 22,3%
115
110
IBEX + 7,3%
105
DOW JONES + 6,9%
IGBM + 5,6%
EURO STOXX + 4,9%
FTSE 100 + 3,8%
100
CAC + 1,3%
95
90
DEC 06
JAN 07
FEB 07
IGBM
MAR 07
IBEX
APR 07
MAY 07
DOW JONES
JUN 07
JUL 07
AUG 07
EURO STOXX
SEP 07
OCT 07
NOV 07
FTSE 100
DEC 07
CAC
DAX
MARKET PERFORMANCE OF LEADING WORLDWIDE INDEXES IN 2007
31/12/06
31/12/07
GBM
INDEX
1.554,93
1.642,01
%Change
5,6%
IBEX 35
14.146,50
15.182,30
7,3%
FTSE100
6.220,80
6.456,90
3,8%
CAC 40
5.541,76
5.614,08
1,3%
DAX
6.596,92
8.067,32
22,3%
DOW JONES
12.501,52
13.365,87
6,9%
EURO STOXX
395,63
414,9
4,9%
DOW JONES MEDIA
236,26
227,61
-3,7%
The Media and Advertising sector closed 2007 with its second
annual loss in response to the doubts generated by the ongoing
transformation processes, the appearance of new channels, and
changes in legislation.
Accordingly, during 2007, a year in which the Spanish economy
surpassed the €1 billion mark in GDP, the Spanish exchange
faced a difficult year with brilliance and solvency following four
Telecinco shares
Outperforming the rest
The media industry recorded sharp declines in stock prices due
in part to its association by analysts and investors to consumer spending and the fear arising from the poor outlook for
economic growth. Within this context, Telecinco in 2007 once
again outperformed the other communications media companies of the Ibex 35 and continues to have the highest market
cap in Spain with 4,319 million euros, far above that of our
competitors. Despite the decline over the previous year, our
market capitalisation has increased by 72.5% since our initial
public offering on the 24th of June in 2004. This clearly shows
that our market performance can be characterised by a high
level of stability, with sustained performance in line with that
of the Ibex 35, while our competitors have recorded sharp
declines during the year.
33
TELECINCO MARKET CAP SINCE IPO
MARKET CAPITALISATION (MILLIONS OF €)
OPV
2.503
JUN 04
2.960
DEC 04
3.744
DEC 05
5.258
DEC 06
5.323
DEC 07
+72,5%
4.319
MARKET PERFORMANCE 24 JUNE 2004 – 28 DECEMBER 2007
220
200
180
MARKET CAPITALISATION OF LEADING MEDIA
COMPANIES IN 2007
160
140
120
T5
4.319
A3TV
2.215
SGC
3.793
100
80
60
JUN 04 SEP 04 DEC 04 FEB 05 MAY 05 JUL 05 OCT 05 JAN 06 MAR 06 JUN 06 SEP 06 NOV 06 FEB 07 APR 07 JUL 07 OCT 07 DEC 07
TL5
A3TV
SOG
IBEX35
VOCENTO
2007 MARKET PERFORMANCE MEDIA COMPANIES
Total trading volume in Telecinco shares in 2007 reached
326.1 million shares, somewhat below that recorded in
previous years. This equals a total value of 6,601 million
euros. Telecinco shares recorded their highest trading volume on 31 May 2007, the day on which Telecinco increased
its weight in the Morgan Stanley Capital Index. The stock hit
an intraday high on 5 June of 21.21 euros per share. The
annual intraday low was recorded on 28 December at 17.13
euros per share.
120
110
100
90
80
70
60
TL5
A3TV
SOG
IBEX
VOC
06/12/07
15/11/07
25/10/07
04/10/07
13/09/07
23/08/07
02/08/07
12/07/07
21/06/07
31/05/07
10/05/07
18/04/07
26/03/07
05/03/07
12/02/07
22/01/07
29/12/06
50
One of the reasons that has allowed Telecinco to maintain
its market strength despite the international environment has
been the majority backing of the audience for the programming offered by the company. In addition, we have broken
the 1,000 million euro mark for gross advertising income, a
new record in Spanish television that has made Publiespaña
the leading company in the advertising industry by sales.
34
Telecinco shares
SHARE PRICE IN TRADING VOLUMEN 2007
TRADING VOLUMEN,
(MILLIONS OF €)
140.000.00
TL5: MORGAN STANLEY CAPITAL INDEX
INCREASES WEIGHT OF T5 (31 MAY)
TL5: DIVIDEND PAID
€ 1.28 (3 MAY)
Share Price (€)
ADVANCE EARNINGS
RELEASE FOR 9M07
(24 OCTOBER)
25.00
120.000.00
20.00
100.000.00
ACQUISITION
OF ENDEMOL (14 MAY)
80.000.00
15.00
60.000.00
10.00
40.000.00
5.00
20.000.00
0.00
0
JAN 07
FEB 07
MAR 07
APR 07
MAY 07
JUN 07
JUL 07
MILLONES €
AUG 07
SEP 07
OCT 07
NOV 07
DEC 07
COTIZACIÓN
TRADING AND OTHER SHARE DATA
Number of ordinary shares
Market Capitalisation (28/12), €
2004
2005
2006
2007
246,641,856
246,641,856
246,641,856
246,641,856
3,774,023,374
5,258,404,370
5,322,531,252
4,318,698,899
Share Price (intraday Madrid Stock Exchange)
- High
13/10/04:16.44 €
22/12/05:21.74 €
11/01/06: 22.90 €
13.14 €
18.61€
€ 20.37
€ 19.76
24/06/04:11.82 €
3/01/05:15.10 €
14/06/06:17.47 €
28/12/07:17.13 €
Net earnings per Share (1) 0.88 €
1.18 €
1.28 €
1.45 €
Gross dividend per share (2)
0.70 €
1.18 €
1.28 €
1.30 €
Pay-Out Ratio: Dividend/Net Profit (1)
79.96%
100.00%
100.00%
89.66%
- Average
- Low
05/06/07: 22.21 €
Dividend Yield: Dividend / Share Price (3)
Total trading volume (shares)
4.15%
5.76%
6.09%
9.00%
382,535,962
442,393,320
424,213,771
326,112,750
Total cash trading volume (millions of €)
4,819.90
7,863.55
8,335.05
6,601.79
Average Daily Volume (shares)
2,942,584
1,728,098
1,670,132
1,288,982
Annual gain or loss (Telecinco)
49.6%
40.4%
1.2%
-18.9%
Ibex35 gain or loss
15.3%
18.2%
31.8%
7.3%
Dow Jones Media Index gain or loss
7.3%
12.5%
7.5%
-3.7%
(1) Net Profit 2007 = €353.06 million, Net Profit 2006 = €314.25 million, Net Profit 2005 = €290.33 million, Net Profit 2004 = €214.21 million
(2) Excluding treasury shares: 3,106,913 and 13 shares at 31 December 2007, 1,411,540 shares at 31 December 2006, 1,450,000 shares at 31 December 2005, and 11,250 shares at 31 December 2004
(3) Share price at the date of preparation of the accounts: 27 February 2008 €14.44, 28 February 2007 €21.01, 1 March 2006 €20.55, 1 March 2005 €16.88.
Telecinco shares
Dividends in 2007
On 11 April 2007 the Shareholders in General Meeting agreed
to distribute a total dividend of €314,249,000 charged against
2006 earnings. The dividend was paid out in May of 2007
and equalled €1.28 per share.
Relating to 2007, the Board of Directors of Telecinco notified
the CNMV on 27 February 2008 of the proposed distribution
of a Gross dividend of €1.30 per share pending approval by
the shareholders in the General meeting. This dividend equals
a dividend yield of 9% and a payout ratio of 90%. Telecinco
boasts one of the highest dividend yields in the benchmark
Ibex index.
GROSS DIVIDEND PER SHARE (€)
2004
1,18
1,28
1,30
Dividend per share: 5,8%
2006
2007
figures and events occurring during the period and includes
a graphic representation of the main activities and areas of
interest of the company. This information is disseminated,
firstly, in Spanish, to the Spanish National Securities Market
Commission (CNMV) for publication on their website.
After this first step, Telecinco publishes the same data in Spanish and English on his own website (www.inversores.telecinco.es), in the investor relations section. At the same time,
the presentations are sent in English and in Spanish by e-mail
to those shareholders, institutional investors and analysts that
have requested. The website complies with all requirements
established under CNMV Circular 1/2004 of 17 March and
contains all of the information used in the meetings and presentations to analysts and investors, as well as the most relevant press releases.
0,70
2005
35
Investor relations
Telecinco’s Investor Relations Department is responsible for
managing the communications to the national and international markets, striving for permanent and transparent transmission of information on the situation, performance and outlook
of the company for all shareholders, investors and analysts in
strict compliance with the guidelines established by the Spanish National Securities Market Commission.
After publication on the web, we normally hold a conference
call and simultaneous webcast for shareholders, institutional
investors and analysts that wish greater explanations or to
pose any questions to the top executives of the company. The
conference call is recorded and published on the company’s
website in the investor relations section for three months.
Telecinco immediately notifies the CNMV of any significant
events for publication on their website and subsequently publishes the same information on the Telecinco website and
sends the information by e-mail to those parties interested in
receiving it.
During 2007, more than 30 financial institutions published regular analysis on Telecinco, maintaining continuous tracking
of the operating and financial performance of the company.
We have held more than 315 meetings with fund managers
and analysts and have organized 13 conferences and two road
shows in the United States and the United Kingdom.
Similarly, Telecinco has adopted various measures to ensure
that the information disseminated to the securities exchanges
is transmitted as equitably and symmetrically as possible. At
the close of each quarter, the Company publishes its results
by means of a detailed earnings release that provides the key
36
Telecinco shares
Shareholder structure.
Our shareholders as stakeholders
The majority shareholders are Mediaset and Vocento, who retained their majority stakes of 50.1% and 13% respectively in
2007. Treasury shares increased by 1.26% and the remaining
35.6% is free float held mainly by institutional investors from
Spain, Britain and the United States.
SHAREHOLDER STRUCTURE
During the past year, Italy and the United Kingdom reduced
their investment in Telecinco by 3%, while investors in the US,
Germany and France lowered their holdings by 1%. Conversely, investors in Japan, Belgium and, particularly, Spain,
increased their positions, with Spanish investors now holding
21% of the shares.
It should be noted that Telecinco meets the information needs
of minority shareholders, institutional investors and analysts
through its Investor Relations Department, and strictly follows
the guidelines established by the Spanish National Securities
Market Commission.
TREASURY SHARES
1,26%
REST FREE-FLOAT
35,6%
MEDIASET
50,14%
VOCENTO
13%
DISTRIBUTION OF TELECINCO SHAREHOLDERS BY COUNTRY
2006
FRANCIA
1%
2007
BÉLGICA
1%
ALEMANIA
4%
ALEMANIA
5%
USA
10%
USA
11%
REINO UNIDO
3%
REINO UNIDO
6%
ESPAÑA
21%
ESPAÑA
17%
ITALIA
59%
Rest
2%
Rest
2%
ITALIA
56%
JAPÓN
2%
Telecinco shares
37
growth
strategy
40
Growth strategy
THE AUDIOVISUAL BUSINESS
Consolidated leadership
AUDIENCE SHARE DURING PRIME TIME
Once again in 2007 Telecinco was able to reaffirm its leadership position and resist the expansion of the audiovisual market thanks to the competitive strength of its day time programming and its solid daily prime time programming, dayparts
in which Telecinco has historically maintained a strong lead
over its competitors.
This was the fourth consecutive year in which the station has
led the market in total audience share with 20.3%, representing a 2.9 point advantage over Antena 3 (17.4%) and a 3.1
point advantage over TVE 1 (17.2%).
Telecinco led the ratings 256 days of the year, 27 days more
than in 2006 and beating its own record by becoming the
ratings leader during every month of the year.
In comparison with 2006, and despite the consolidation of the
current audiovisual map and the increase in the number of
operators, the audience share of Telecinco edged down only
9/10 of a point, compared with a two-point drop by Antena 3
and a 1.1 point decline by TVE 1.
TOTAL AUDIENCE SHARE FOR THE FULL DAY
Telecinco
20,3
Antena 3
17,4
TVE1
17,2
FORTA
14,5
La 2
4,5
Cuatro
7,7
Telecinco
20,9
Antena 3
16,8
TVE1
16,8
FORTA
15
La 2
4,1
Cuatro
8
La Sexta
4,5
Temáticas
10,8
Local
2,8
Telecinco’s programming once again made the station the undisputed leader in television’s most important daypart, prime time
(20:30-00:00 hours in Spain), with an audience share of 20.9%.
Despite declining slightly over the previous year, Telecinco sharply
widened its lead over its two closest competitors. The very solid
foundation of this success lies in the excellent ratings achieved by
the station’s programming, a compendium of most viewed national
and foreign series backed up by in-house productions that have
been widely and firmly accepted by Spain’s television audiences.
This strength has made Telecinco the first choice among audiences
every night of the week during prime time. Telecinco has 16 of the
25 top rated broadcasts and 14 of the 20 top rated series in 2007.
10 TOP-RATED BROADCASTS IN 2007
Broadcast
FOOTBALL: CHAMPIONS LEAGUE
FOOTBALL: EUROCUP CLASSIFICATION La Sexta
4
Temáticas
11,3
Local
2,9
AÍDA
Station
Viewers
Share
A3
5,604
33.0
TVE1
5,368
36.8
Telecinco
5,182
28.2
C.S.I. MIAMI
Telecinco
5,181
27.2
C.S.I. LAS VEGAS
Telecinco
4,854
26.3
FOOTBALL: UEFA
OPERACIÓN TRIUNFO: GALAS
A3
4,752
31.3
Telecinco
4,535
28.2
FÓRMULA 1
Telecinco
4,479
48.3
FOOTBALL: SUPER CUP
Telecinco
4,345
38.4
LOS SERRANO
Telecinco
4,263
23.9
Growth strategy
41
42
Growth strategy
Telecinco’s supremacy extends to all of the key dayparts.
The station was the lunch companion of choice at midday
(19.9%), consolidated its position in the afternoon (21%) and
kept people during the late-night (23.1%), all of which translates into a clear domination of the Spanish daytime (20%),
a 2.3 point advantage over Antena 3 (17.7%) and 2.6 points
over TVE 1 (17.4%).
But this past year also marked another triumph for Telecinco.
The station’s programming is perfectly in tune with the preferred target audience of advertisers (viewers between 13 and
59, middle to upper classes residing in cities with a population
of over 10,000). 2007 was the ninth consecutive year in which
Telecinco was the absolute leader in its commercial target,
with an even larger share than that of the average audience:
22.5% in total and 23.5% in prime time.
Regionally, Telecinco was also the absolute leader in eight regions: the Basque country, Asturias, Madrid, the Canary Islands, Aragón, Valencia, Andalucía and Catalonia.
Fiction
Telecinco has again clearly demonstrated that it is without rival in both national and foreign fiction series, the genre most
highly demanded by viewers and one of the true keys to the
success of the station. The station offers 14 of the 20 top
rated series in 2007:
TOP RATED SERIES 2007
Series
Station
Viewers
Cher
AÍDA
Telecinco
5,182
28.2
C.S.I MIAMI
Telecinco
5,181
27.2
C.S.I LAS VEGAS Telecinco
4,854
28.3
LOS SERRANO
Telecinco
4,263
23.9
CUÉNTAME CÓMO PASÓ
ESCENAS DE MATRIMONIO (L-V)
TVE1
4,223
23.5
Telecinco
4,140
26.1
HOSPITAL CENTRAL
Telecinco
4,106
24.4
CAMERA CAFÉ (D)
Telecinco
3,841
22.3
LOS HOMBRES DE PACO
A3
3,782
22.4
EL INTERNADO
A3
3,718
21.4
HOUSE
CUATRO
3,668
19.0
CAMERA CAFÉ (L-V)
Telecinco
3,610
22.8
EL COMISARIO
Telecinco
3,494
22.7
HERMANOS Y DETECTIVES
Telecinco
3,417
20.3
YO SOY BEA
Telecinco
3,391
34.3
MIR
Telecinco
3,181
18.5
LA QUE SE AVECINA
Telecinco
3,158
21.3
MANOLO & BENITO
A3
3,104
16.5
LA FAMILIA MATA
ESCENAS DE MATRIMONIO (weekend)
A3
3,037
16.9
Telecinco
2,940
21.1
In-house fiction
Telecinco has continued to bet on in-house production of fiction as the cornerstone of a stable programming grid, making
it the leading television station in Spain.
Among the most notable new series during the year, we would
highlight the mixture of intrigue, mystery and comedy offered
by “Hermanos y detectives”. With 3,417,000 average viewers
and a share of 20.3%. This adaptation of the popular Argentine
series of the same name has become one of the most viewed
fiction series premieres of the season. Other successful new
series included “MIR”, a Hospital Central spinoff that closed
the year with 3,181,000 average viewers and a share of 18.5%,
and the very popular “La que se avecina”, a comedy series with
3,158,000 average viewers and a share of 21.3%. All of these
new series are worthy additions to Telecinco’s fiction catalogue,
where they join other productions that have become nearly historical.
This is the case of “Aída”, which, with 5,182,000 average
viewers, is Spain’s top rated fiction series. Of course we cannot
forget the extremely popular “Los Serrano”, with an average
share of 23.9% and 4,263,000 viewers, “Hospital Central”,
the series with the highest number of episodes and 4,106,000
average viewers during the last season for a 24.4% share, and
Spain’s longest running series, “El Comisario”, with a season
total of 3,494,000 viewers and a 22.7% share.
“Escenas de matrimonio” without doubt was the new series
with the best reception by audiences during the year, becoming a true television phenomenon recording constant growth
Growth strategy
since its premier in August and tripling the number of viewers.
This irreverent look at married life has become an unstoppable
success story with a share of 26.1% and 4,140,000 average
viewers. The series shows the varied reactions of three couples
of different ages when faced with similar situations in their daily
lives. This formula has made “Escenas de matrimonio” one of
the preferred choices for audiences in 2007 and the surprise
success of the year in national fiction.
If there is any show that deserves special mention it is “Yo soy
Bea”; the hugely popular soap opera in the midday time slot
has been unbeatable since its premiere in July 2006. With a
34.3% share and 3,391,000 viewers, the series has topped the
ratings in its time slot in every single one of its more than 300
episodes, making it the undisputed top rated fiction series during the day time since 1995.
“Camera café” reaffirmed its popularity on both weekdays
and prime time on Sundays. The zany antics of the show’s
stars and the biting humour of the sketches have allowed “Camera Café” to maintain in 2007 the success registered since
its launch in 2005. The show registered 3,618,000 average
viewers and 70 episodes were ranked among the three most
viewed broadcasts of the year.
43
diences. These new formats have joined already consolidated
success stories that continue to perform superbly, including
the reality shows, contests and live broadcasts offered during
prime time.
One of the shining stars of the kinds of has been the talent
contest “Operación Triunfo”, presented by Jesús Vázquez
(Premio Ondas 2007 for his career), which has become the
most viewed in-house production of the year with 4,535,000
viewers and a share of 28.2%.
Flagship reality show, “Gran Hermano”, Spain’s “Big Brother”
has truly surpassed the test of time and now in its ninth year
as reaffirmed its position as the most successful reality show
on Spanish television. The prime time broadcast presented by
Mercedes Milá registered in almost 5 point increase in share
from the previous year, reaching an average of 28.3% with
3,511,000 viewers. This success carried over to all of the other
related programming: the daily summaries presented by Óscar
Martínez (24.9%); the debate moderated by Jordi González
(25.4%) and the live broadcast “Gran Hermano: la casa en
directo” (28%).
RATINGS DURING DE EXACT TIME SLOT OF “GRAN HERMANO IX”
35,7
Telecinco increased the weight of in-house productions in
2007 up to 83.6% of total broadcasts. The station has bet
heavily on new formats that have been able to click with au-
25,1
26,2
27,7
24,9
26,3
26,7
27,3
29
29,5
28,2
27,4
20/12/07
30,2
28,7
30,0
26
25,0
20,0
15,0
10,0
5,0
TVE1
ANTENA 3
AUTONÓMICAS
CUATRO
LA SEXTA
27/12/07
06/12/07
29/11/07
22/11/07
01/11/07
25/10/07
18/10/07
11/10/07
04/10/07
27/09/07
20/09/07
13/09/07
09/09/07
0,0
TELECINCO
In-house production
31,7
30,7
13/12/07
Telecinco in 2007 continued to offer the highest quality foreign fiction to meet the needs of an audience that, faced
with expanding number of choices, demand the most attractive products, such as “C.S.I.”, the top rated foreign fiction
series in 2007. Thanks to the forensic teams of “C.S.I. Las Vegas” (4,854,000 and 28.3%) and “C.S.I. Miami” (5,181,000
and 27.2%), the station has become the undisputed leader of
Monday nights.
35,0
15/11/07
40,0
08/11/07
Foreign fiction
RESTO
In addition, Telecinco successfully launched the second season
of the international format “Supervivientes: perdidos en Honduras”. Quality production, excellent casting and the superb
performance of host Jesús Vázquez have allowed this survival contest to dominate not only Thursday nights (3,312,000
44
Growth strategy
viewers and a 24.8% share), but also during the daily summaries presented by Mario Picazo and the Sunday debate moderated by Lucía Riaño.
Prime time programming this year also included the return
of one of Spain’s most popular programmes. Two years after
the close the of “Crónicas Marcianas”, host Javier Sardá has
returned to Telecinco with “Dutifrí”. The popular journalist
combines humour and spontaneity as he travelled around the
world in the company of leading personalities from cinema,
culture, music and sports.
Telecinco has also premiered in-house productions during the
daytime and late night thanks in many cases to the agreements established in 2006 with production companies Mandarina, La Fábrica de la Tele and Alba Adriática, taking an
equity stake in each.
There were two new successful premieres in the evening timeslot: “Está pasando”, a news and entertainment programme hosted by Emilio Pineda and Lucía Riaño that has become
the source for evening news with an average share of 20.4%
and 1,628,000 viewers, and “Pasapalabra”, the popular word
game hosted by Christian Gálvez that has continued to attract
more and more viewers over its more than 100 episodes, reaching a figure of close to 2 million. Throughout the year, the
popular contest was followed by the equally popular international competition “¡Allá tú!”, which has attracted a loyal
following of more than 2 million viewers.
During the late-night timeslot, Maria Teresa Campos has returned to Telecinco 2007 to host “El laberinto de la memoria”, a
monthly programme offering biographical documentaries on
leading Spanish personalities followed by a debate moderated
by the veteran journalist that is followed by over one million
viewers.
Other premieres during the timeslot included: “Hormigas
Blancas”, a look at the lives of well-known public personalities presented by Jorge Javier Vázquez; “El Ventilador”, an
interview programme hosted by Yolanda Flores, and the new
season of “Caiga Quien Caiga” with Manel Fuentes, Leo Rivera and Juan Ramón Bonet and new investigative reporting
offered by Mercedes Milá on “Diario de…”. On Saturdays,
viewers have responded well to the interviews and investigative reporting offered by “La Noria”, a live broadcast hosted
by Jordi González.
One of our most veteran programmes continues to stand out
as a resounding success, “El programa de Ana Rosa”, has
continued to be the unbeatable leader in its time slot with an
average 935,000 viewers and a share of 21.6%. At midday,
the irreverent “Aquí hay tomate” continued to lead its timeslot throughout the year with an average share of 23.6%
and 2,826,000 viewers. After five years of following current
events and the goings-on of the rich and famous, this top
rated programme hosted by Jorge Javier Vázquez and Carmen Alcayde bid a fond farewell to their faithful audience in
February 2008.
Telecinco´s news
Telecinco’s news team, led by news director and anchor Pedro
Piqueras, was reinforced in 2007 with the incorporation of
journalist Marta Fernández, who will present the news with
Hilario Pino during the midday broadcast. Telecinco, responding to an increasingly demanding audience, has shifted the
broadcast from its normal time to 3 p.m.. Marta Fernández is
an experienced journalist and a welcome addition to the Telecinco news team, where she will join a long list of excellent
journalists, including Ángeles Blanco, Daniel Gómez, Carme
Chaparro, José Ribagorda, J.J. Santos, Antonio Lobato and
Mario Picazo, among others.
Telecinco’s news programmes are characterised by exclusives
and top-notch reporting throughout the year. The changes
introduced with the arrival of veteran journalist Pedro Piqueras
have progressively consolidated to become on many days the
top choice of viewers.
The superb work of the Telecinco news team has allowed us
to scoop all of our competitors on some of the most important
events of the year, such as national and international terrorism. Telecinco was the first to broadcast images of the inter-
Growth strategy
nal training manual of the Basque terrorist group ETA, as well
as the recruiting video used by the terrorists. Other exclusives
by Telecinco included the photographs of the terrorists that
murdered a Spanish soldier in Afghanistan. All of this information has also been quickly available on the station’s news
website www.informativos.telecinco.es.
45
closed 2007 with record audience levels for all of the Grand
Prix broadcasts.
F1 BROADCASTS AUDIENCE SHARE AND VIEWERS
2007
2006
Grand Prix’s
48.3% & 4,479,000
48.4% & 4,111,000
During 2007 the station offered exclusive interviews with leading personalities, like the interview by Pedro Piqueras of Interior Minister Alfredo Pérez Rubalcaba, during which he made
his first declarations following the violation of the cease-fire
by ETA. Also in 2007, Informativos Telecinco commemorated
the 30th anniversary of the first democratic elections with a
series of special reports on the changes in Spanish society since the so-called Transition.
Classifications
25.3% & 1,789,000
24.4% & 1,596,000
Pre-Formula 1
30.6% & 2,134,000
31.6% & 1,979,000
Post Formula 1
39% & 4,024,000
39.2% & 3,536,000
2007
48,3% 4.479
Telecinco has also used its news programmes to support various social initiatives. This included, as part of the “12 months, 12 clauses” campaign, the broadcast of two reports on
Alzheimer’s disease during its main broadcasts in commemoration of World Alzheimer’s Day.
2006
48,4% 4.111
Fórmula 1
Telecinco broadcast its fourth Formula 1 series in 2007. The
experience gained by the Telecinco team in this sport over
these years has again translated into a new ratings success.
The 2007 Grand Prix was followed by 4,479,000 viewers
for a 48.3% share, the highest following ever achieved by
Formula 1 in Spain.
The broadcast this year followed a new format, with a
more mature and experienced team and a more advanced
technological structure. The team led by Antonio Lobato
introduced important new aspects into the prerace features,
with new sections that brought racing closer to audiences
and made it more understandable. Telecinco also reinforced
viewer participation through the website www.formula1.telecinco.es, where fans could prepare “à la carte” contents to
the prerace by contributing their own videos, comments and
suggestions. Thanks to this dedication and effort, Telecinco
GRAND PRIX AUDIENCE SHARE AND VIEWERS (IN MILLIONS)
2005
47,6% 4.247
share
Telecinco also broadcast the GP2 race, the prelude to the Formula
1; the Superbike Championships and some of the most decisive
competitions of the 2007 football season: the Copa del Rey finals
(Sevilla F.C.- Getafe C.F.), the two Supercup matches between Sevilla F.C. and Real Madrid C.F and three league matches (AthleticReal Madrid, Valencia-Barcelona and Villareal-Barcelona).
DTT
The quality and the functionality of the work system used by
the company for Digital Terrestrial Television (DTT) has improved noticeably since the launch of the Central Control and
Broadcasting Centre in July 2005. This new digital platform
increases the possibilities for distribution of content by satellite, fibre optics, wireless and ADSL. It also manages the reception, production and delivery of content in digital format and
increases the available value added services.
Telecinco launched 2008 with new offers in digital channels,
with competitive content not only in the DTT market, but also
46
Growth strategy
in the global audiovisual sector. The station has also established links between the content currently broadcast on the
general channel and that on the theme channels. The content
and interactive possibilities continue to grow as the penetration and consumption of this new technology continues to
be implemented across society. The changes in content have
been coupled with a new corporate identity for each of the
channels, with Telecinco Sport becoming known, starting in
February 2008, as Telecinco 2, and Telecinco Estrellas changing its name to FDF Telecinco.
Telecinco Estrellas and Telecinco Sport
Telecinco Sport and Telecinco Estrellas celebrated their second
anniversary in 2007, the station’s theme channels for digital
terrestrial television offering the two genres with the greatest
possibility for interactive development and future growth: fiction series and sporting events.
On Telecinco Sport, the content revolves around one hour
blocks with sports and news bulletins every 15 minutes thanks
to an agreement with Eurosport, Throughout the year, Telecinco Sport progressively increased its programming with a wide
range of in-house productions produced specifically for the
digital channel. This included “Semanal Sport”, a weekly debate and news programme presented by J.J. Santos; “Reporteros”, a programme with reports produced by the Telecinco
news team that hits the street to uncover the news that most
concerns Spanish society, and “Documenta 5”, an alternative
news format presented by Hilario Pino and Pedro Piqueras covering newsworthy events in a documentary format.
events, such as the classification sessions for the Formula 1
and GP2 races, broadcast during prime time.
The fiction channel, Telecinco Estrellas, provides 24 hours a
day of the most emblematic national and international fiction
series, the most highly demanded genre among viewers, including “Yo soy Bea”, “Siete vidas”, “Médico de familia” and
“Al salir de clase”. The channel also offered the prime the
time broadcast of “Motivos personales” and the creation of
a special cycle dedicated to Steven Spielberg, which included
the national premiere of the science fiction series “Taken”, the
complete broadcast of the epic WWII super production “Band
of Brothers”, the showing of the academy award winning
“Saving Private Ryan”. Foreign series in their original versions
in the container programme “Let’s speak English”, the soap
opera “Los Reyes”, news programs such as “100% sun”, and
a wide range of films all week long complete the programming grid of Telecinco Estrellas.
Improvements in DTT audio
2007 also marked the introduction of high quality stereo audio content in at least two languages on the DTT channels.
The technical resources and bandwidth have been augmented
to increase the audio content offered by DTT, in addition to
the compliance with other legal commitments. Depending
on the commercial strategy, broadcasts can be in Spanish, foreign languages, or the vernacular languages of the Spanish
regions.
At the close of 2007, Telecinco Sport expanded its theme
format to include reality programming and establish greater
synergy with the general channel with the first ever digital
broadcast of “Gran Hermano: la casa en directo”, as well as
entertainment, with the national premiere of the tryouts for
the contestants in the first edition of “Tú si que vales”.
Other programmes broadcast on the DTT channel include “El
Tiempo”, “Píldoras Más Que Coches”, “Más Que Coches
Competición”, “Swing Golf”, “Match Golf” and “El Rincón
del Cazador”. Telecinco Sport also broadcast first rate sporting
Growth strategy
47
THE ADVERTISING BUSINESS
Publiespaña has hit a new milestone in the history of Spanish
television. The holder of the concession on Telecinco’s advertising space has surpassed the 1000 million euro barrier in gross
advertising income in 2007, a symbolic figure that has never
before been achieved by any operator in Spain. With 8.9%
growth over the previous year, Publiespaña is the leading Spanish advertising company by sales, profitability, power ratio,
price and market share.
ADVERTISING SPEND (IN MILLONS OF EUROS)
TTV 06
TTV 07
+8,4%
3.096,5
3.356
TL5 06
953,7
TL5 07
+8,8%
1.038
A3 06
837,4
A3 07
-0,3%
834,8
MARKET SHARE 2006
TVE 06
692,5
TVE 07
+3%
713,1
2006
CUATRO
6,0%
REGIONAL
12,0%
LA SEXTA
1,6%
TELECINCO
30,9%
ANTENA 3
27,1%
MARKET SHARE 2007
2007
LA SEXTA
4,0%
REGIONAL
10,6%
TELECINCO
30,9%
ANTENA 3
24,9%
TVE
21,2%
370,7
-6,2%
354,8
CUATRO 06
186,6
CUATRO 07
+51,4%
282,5
LA SEXTA 06
48,2
LA SEXTA 07
+175,5%
132,8
Note: The advertising spend figure for Total TV 2006 (3096,5) differs from that provided
in last year’s annual Report (3089,2) due to an errata in the Infoadex report for 2006.
TVE
22,4%
CUATRO
8,4%
AUTO 06
AUTO 07
The drivers behind the success are the strength and uniformity
of the programming across all dayparts, the leadership in audience share and the efficient management of advertising space. This, together with a mature and flexible commercial policy, has reinforced the advertising efficiency of Telecinco. The
results obtained by Publiespaña gain special relevance given
that 2007 was a year in which there was greater competition
among the Spanish broadcast television stations and from the
new technologies and forms of access to television content.
The search for new solutions oriented to meet the needs of its
clients has always been a differentiating factor that has helped
the station stand out in advertising. This has led the company to
create exclusive blocks of shorter durations in order to increase
the efficiency of the campaigns, as well as a varied catalogue of
products under the banner of “Special Initiatives” with the goal of
48
Growth strategy
not only constantly increasing the integration of television content
and advertising messages but ding it better and better every day.
THE LAUNCH OF TOP SPOT, THE MAGAZINE
OF THE PUBLIESPAÑA GROUP
PUBLIESPAÑA INCREASES THE WEIGHT OF SPECIAL
INITIATIVES AND CREATES NEW FORMULAS
FOR PRESENTING CONVENTIONAL ADVERTISING
In order to continue growing in transparency and build stronger ties to clients and media agencies, in 2007 Publiespaña launched the magazine Top Spot, a pioneering initiative
through which the company has created a new channel for
communicating with the market. Top Spot is published quarterly by the Customer Retention Department of Publiespaña
and provides detailed information on the commercial policy of
Telecinco, reports on the series and programmes broadcast by
the station, interviews with the executives of leading advertisers and media centres in Spain and reports on the latest news
in the Spanish audiovisual sector, as well as other interesting
content.
In 2007 Publiespaña achieved its goal of increasing the weight
of Special Initiatives to over 15% of total revenues. The company again anticipated the market with the creation of an ample catalogue of products that allow advertisers to communicate in different ways and achieve greater awareness through
celebrity presentations, internal moments, commercial sitcoms,
advances, lead ins, special mentions, overprinting, infomercials and infotainment, plus a service of “à la carte” designs
adapted to any alternative proposal from the clients.
In addition, Publiespaña has also introduced new forms of
placing conventional advertising, aware that the form of programming, broadcasting and integrating advertising content
is one of the most widely used tools by television stations to
differentiate themselves from their competitors. This is the
case of new formulas such as “Daily”, an agreement with the
advertiser to broadcast a total of 14 five-second commercials
in a single day at one hour intervals at the antepenultimate position, and “Top Spot”, consisting of the broadcast of a
block of only one advertisement situated between the end of
a programme and the start of the next.
Other possibilities offered by Publiespaña to provide added
value to classic television advertising include the “Hi Quality” and “Podium” blocks in Fórmula 1, which do not combine more than four spots; the preferred positions at the start
and the end of a programme; morphings - the merger and
transition of the advertiser’s image with that of Telecinco- a
reduction of advertising pressure during certain programming
spaces, such as the case of “C.S.I.”.
The Formula 1 broadcasts this year also achieved a balance
between content and advertising by using advertising windows rather than commercial breaks, thereby allowing viewers
to watch the race without losing any moment of what was
happening on the track.
Publiespaña has also renewed its website, improving both
the design and the content. Through the website, clients and
other interested parties can learn more about the company,
everything from its most qualitative offer through the latest
news on programming and upcoming content of the Top Spot
magazine.
Publimedia Gestión
Huge technological advances, the myriad new ways to access
content and the digitalisation process have given birth to a
new broadcasting reality that provides new trends and greater
opportunities for advertisers. The challenge of diversification
and specialisation in the commercial management of the new
television formats is assured in the Publiespaña Group though
its subsidiary Publimedia Gestión.
The ability to offer the best multivenue product for an increasingly demanding market is the raison d’être of Publimedia
Gestión. During 2007 the company has marketed audiovisual
content in diverse media formats ranging from the Telecinco Digital Terrestrial Television channels through cable television operators such as ONO and analogical television stations, through
the commercial management within the Spanish market of the
Mediaset stations in Italy, Germany and the United Kingdom.
Growth strategy
49
Publimedia Gestión has also continued to bet on print media
with Bulevar 21, Mi cartera de inversión and the publications
of Mondadori, as well as outdoor advertising -Canal Metro
Madrid and Barcelona and seat back in football stadiums -,
and television formats such as “Más que coches”, “Nosolomusica” and “El mundo mágico de Brunelesky”.
ADVANCED MEDIA, INTERNET AND MOBILE
TELEPHONES, CLOSER TO THE ADVERTISER
The advances in mobile telephone technologies and the increasing importance of advertising on the Internet has led Telecinco to increase its focus on these business lines, in which
the advertisers are dedicating increasingly higher percentage
of their advertising spend. Publimedia Gestión has created a
specific department under the brand Advanced Media, with
the goal of reinforcing the advertising on the Telecinco website, www.telecinco.es, The financial portal, www.bolsacinco.
com, and the station’s news website, www.informativos.telecinco.es.
Similarly, Advanced Media will market the audiovisual content
reaching the Orange users of 3G-enabled mobile telephones,
as well as the virtual magazine, “Blue”, of the BBVA Group,
which the bank uses to interact weekly with a large number
of young people using rich media formats.
Advanced Media provides traditional advertising space on these venues as well as developing and marketing new advertising formats, adapted to the singular nature and language of
each medium.
This new business line has reinforced the multimedia character
of Publimedia Gestión and helped the company to achieve
gross advertising income of over 31 million euros.
50
Growth strategy
OTHER BUSINESS LINES
TELECINCO CINEMA,
CINEMA WITH PEDIGREE
The commercial department of Telecinco maximises the use
of the audiovisual products of the station, managing all of
Telecinco’s rights both nationally and internationally and optimising all of the products derived from the station’s programmes and series. Specifically we would highlight the launch of
the first season of “Escenas de matrimonio” on DVD, Which
has become the leading Spanish series in the national market. The station has also released the new seasons of “Aída”,
“Hospital Central”, “Los Serrano” and “Yo soy Bea”, which
have consolidated Telecinco’s position as the market leader in
the direct sales of Spanish fiction series.
Over the last few years the Telecinco European and Spanish
Cinema Division has made a firm commitment to the national
film industry with the production of some of the most highly
rated and acclaimed films in the national and international
arena.
The ninth season of Spain’s Big Brother, “Gran Hermano”, has
revitalised the value of the brand through associated products
in both sound recordings and print. In-house brands, such as
“Las 101 mejores bandas sonoras” occupy the top spot on
sales lists, without forgetting the launch of performers like
Soraya, Sergio and Edurne after their time on “Operación
Triunfo”, which throughout 2007 have topped the charts for
national soloists.
In the video-on-demand business line, Telecinco has taken
the first steps for its series to be available on cable operators and other platforms, such as ONO and Imagenio, which
offer Telecinco products as an added value service. Theme
channels have also become home to Telecinco series, including Teuve, Sony-AXN, Paramount Comedy and Universal
Calle 13.
In the area of rights sales, Telecinco has successfully marketed “Escenas de matrimonio” internationally, selling the format in such countries as France (M6), Italy (Endemol), Greece (KAPA) and Czechoslovakia (Top TV), among others. In
addition, the Spanish version of “Aída” is being broadcast in
Mexico (TV Azteca) and “Los Serrano” has been exported to
Russia (NTS), Italy (Canale 5), Rumania (Kanal D) and Finland
(YLE), among others.
In 2007, Telecinco European and Spanish Cinema Division
changed its name to Telecinco Cinema, a brand that will
substitute the Estudios Picasso brand that has been used in
our cinema productions to date. The increasingly active and
fundamental role that the company is playing in the development and financing of films makes it the perfect time to
announce the association of Telecinco with some of the most
ambitious and acclaimed films and more than a few smash
box office hits.
Under its new identity, Telecinco Cinema has undertaken various
important projects in 2007 and premiered others produced the
previous year in order to continue participating and contributing
to the development and expansion of Spanish films beyond our
borders. The company’s cinema policies are based, on the one
side, on the production of major feature length films directed by
renowned filmmakers with top level actors, and, on the other,
in entrusting the camera to a young talents in order to promote
the stars of the future through numerous lower budget feature
films. The soundness of this policy is clearly reflected by the fact
that some of Spain’s top box office hits have been produced by
Telecinco, including “El Orfanato”, “Alatriste”, “El laberinto del
fauno” and “El otro lado de la cama”, among others.
We would especially highlight the success of “El Orfanato”
(The Orphanage), Spain’s top box office hit of 2007, grossing
24,264,376 euros with an audience of 4,257,576 viewers,
Numbers that surpass those of Hollywood super productions
“Pirates of the Caribbean” and “Shrek 3”. The Orphanage
is also the second highest grossing film in the history of Spanish cinema.
“El Orfanato” was nominated to represent Spain for the Oscar
for Best Foreign Language Film in the 80th Edition of the Academy Awards. In addition, this hit film allowed Telecinco to
dominate the nominations for the Goya Awards for the second
consecutive year, Spain’s main film awards. The Telecinco Cine-
Growth strategy
51
ATLAS ESPAÑA
ma film was awarded 7 “estatuillas”, for Best Original Script,
Best New Director, Best Production, among others. Internationally, “El Orfanato”, released as The Orphanage in English,
has been sold in over 40 countries including the United States
through the distributor Picturehouse, who also handled “El
laberinto del Fauno” (Pan’s Labyrinth in the US). In addition
the film was acquired prior to its premiere by the American
producer of the “Lord of the Rings” in order to shoot a remake
in the US with Guillermo del Toro as producer.
In 2007, Telecinco Cinema began the shooting of “El Argentino” and “Guerrilla”, two mega-productions on the revolutionary figure of Che Guevara directed by Steven Soderbergh, the
Academy award-winning American filmmaker. The film stars
Benicio del Toro in the lead and a superb international cast.
The company also premiered “Los crímenes de Oxford”, by
Álex de la Iglesia, starring Elijah Wood, John Hurt and Leonor
Watling In the lead roles.
In addition to these ambitious projects, and Telecinco Cinema has participated throughout the year in numerous other
films by new directors (currently in different stages), including
Jaime Marques (“Ladrones”), Álvaro Díaz Lorenzo (“Café
solo o con ellas”) and Max Lemcke (“Casual Day”), Together
withindependent producers. Through the ease projects, the
station covers such varied genres as comedy (“Salir pitando”,
by Álvaro Fernández Armero; “Un buen día lo tiene cualquiera”, by Santiago Lorenzo and “Gente de mala calidad”, by
Juan Cavestany), drama (“Todos estamos invitados” by Manuel Gutiérrez Aragón), Black comedy (“Que parezca un accidente” by Gerardo Herrero), Intrigue (“Eskalofrío”, by Isidro
Ortiz; “El rey de la montaña” by Gonzalo López-Gallego), Comic (“Santos” by Nicolás López) and documentaries (“Maradona”, by Emir Kusturica). Diverse genres that, primarily, had
a single common denominator: the presence of independent
producers and a firm commitment to new directors in quality projects. These films join the recent premieres of “La caja
Kovak”, “Días de cine” and “¿Quién dice que es fácil?”,
among others.
In 2007 Atlas registered an all-time high in earnings, reaffirming its leadership of the multimedia news agency market
through the sale of images and broadcast services for television, Internet, institutions and companies. With this growth,
Atlas is now present across all television market segments,
from national and regional general channels, to DTT and local
television.
The company has also consolidated its position as a leader in
the digital media market with a Web presence in such leading
media as El Mundo, El País, ABC, 20 minutos, El Economista,
Público, Mundo Deportivo, Marca, AS and the regional Websites of Vocento, as well as leading Internet portals, such
as Terra, ONO, Wanadoo and Ya.com, among others. Atlas
makes available to each a daily selection of 50 videos produced on current national news subjects and grouped under
the headings of politics, sports, economy, current events and
society, which can be consulted directly by subscribers on the
agency’s website, www.atlas-news.com.
With its large portfolio of clients, the Broadcast Services area
also recorded its highest ever earning since its creation. These
excellent results were possible things to the company’s sales
growth, commercial drive and cost controls.
The programmes produced by Atlas in 2007 form part of the
programming of five regional television stations, with “Un paseo por las nubes” (TVA Castilla la Mancha), “KKO canario”
(TVA Canarias), “Kaos” (TVA Extremadura), “No digas no” (TVA
Andalucía) And “Vuelta de tuerca” (ETB). Atlas also produces
programmes for Telecinco, including “Aquí hay tomate” and
“Diario de…”, as well as various top-level sports broadcasts,
such as Formula 1 racing, the Superbike championship and the
finals of the Copa del Rey Football championship.
With this excellent background, Atlas in 2008 plans on continuing with the development of the News Agency business
and taking advantage of the demand generated by the new
channels and its current leadership position.
52
Growth strategy
TECHNOLOGICAL INNOVATIONS
AS GROWTH DRIVERS
New Telecinco website
In 2007, the Multimedia Content Platform designed the
new Telecinco website, characterised by a strong audiovisual
style, the high capacity of interactive resources and image
downloads, as well as new sections that establish synergies
between television and the Internet, promoting the active
participation of users.
Telecinco.es received the firm backing of Web users, allowing
the station to consolidate its Internet leadership and, once
again, far out-passing its closest competitors during every
month of the year, both for home and work access. Work
access was incorporated into the measurements in the month of March; the ratings agency previously had only measured home access. Even with this change in the sample,
Telecinco.es always maintained its supremacy.
AVERAGE COVERAGE FIGURES 2007.
AUDIOVISUAL SECTOR. SOURCE: NIELSEN
telecinco.es
9,47%
antena3tv.com
5,68%
cuatro.com
4,63%
rtve.es
3,80%
plus.es
2,84%
lasexta.com
1,98%
ra”, a unique service among television webpages that allows
users the option of recording their own videos with their webcam using a simple application that allows them to record
and edit, if desired, their videos and upload. Another popular
new section is “La tele de…”, which allows each user to manage the Telecinco content according to their own preferences, with the possibility of being informed foreign immediately
when any video or additional information is uploaded on the
selected series and programmes.
Also in 2007, www.telecinco.es promoted participation through
blogs to reinforce the community around each programme. In
order to interact with the public, the station’s hosts, such as
Mercedes Milá and Mario Picazo, reflect their personal opinions and news in personal blogs, allowing for an ample forum
for debate. Also along these lines, the Telecinco website has
created an encounter point for its viewers with “Blogmaster”,
where the questions, doubts and suggestions of site users are
answered by the professionals of www.telecinco.es.
To add some more interactive fun to the website, www.telecinco.es includes numerous games and contests, including
“Toma café”, an animated video game that allows users to
re-create the daily life of an office environment.
Loyal Telecinco fans can also find previously unpublished content from their favourite programmes and series, given that
each has its own website. The most popular images broadcast
on the television, extra content, interviews with stars, and trivia on the shows and recordings are just some of the content
that users will find on each site.
Fuente: Nielsen
One of the greatest innovations on the new www.telecinco.es
is “Mitele” (literally MyTV), a video channel where users can
access the top moments of their favourite programmes, advances on their favourite series, bloopers, unpublished extras,
and in-house reports that expand on the television broadcasts,
all offered at 544x408 pixels, the largest viewer among all of
the audiovisual portals in Spain.
The possibilities offered by “Mitele” are multiplied through its
many sections, among which we would highlight “Yo cáma-
The website also opens up new business opportunities by
offering advertisers the most interesting targets and using the
new advertising formats that best adapt to their needs.
bolsacinco.com
Less than two years old, www.bolsacinco.com has become one
of the five top financial portals, with over 200,000 unique users
per month. The website is used by small investors and savers,
as well as the movers and shakers of Spain’s financial markets,
Growth strategy
offering a wide range of investment services, opinions, news
and articles on the financial markets and economy.
53
Digitalisation in Telecinco
Digitalisation of the historic library
Easy access to share prices around the world, fluctuations in
mutual funds and other financial assets are just some of the
distinctive services offered by Bolsacinco.com. There is also
a message board that has become hugely popular with over
16,000 registered users.
In 2007, Bolsacinco improved its services again thanks to an
agreement with Openbank to offer share prices from the Spanish exchanges in real time for both large and small investors,
making it an excellent tool for managing investments. The
agreement includes implementation of a mutual fund clinic,
that will provide monthly recommendations to facilitate decision-making by small savers and investors.
Mobile telephone applications
Telecinco offers a wide variety of content for distribution via
mobile telephone operators. In 2007 the station and Glu
Mobile launched the official “Pasapalabra” game based on
Telecinco’s successful television competition, , which re-creates all of the tests faced by the contestants on the television
programme. Another of the new services launched this year
is a video alert service, whereby subscribers can sign up to
receive relevant news on their mobile phones in a video.
Teletext
Telecinco reinforced its teletext services, incorporating improvements to optimise the service. Firstly, Telecinco adopted a
new colour code that facilitates the use of the service making
it more comfortable and easier to read.
Secondly, in addition to the normal publication of news, Telecinco has incorporated a call system for increased information
on the latest news that is of greatest interest to the spectator,
such as closing stock prices, sports results, and other current
events. Lastly, the stations own content has been increased
with theme chats and interactive services.
In recent years, Telecinco has been immersed in the long but
highly beneficial process of changing the Digital File from a
support element for the programmes to a Digital Management System for Corporate Content.
The first step in the process implies the reception of agency materials over the Internet directly into the Digital File,
allowing for the processing and distribution in an automated
and efficient manner. The Digital Content Receipt System provides a reduction in reception times and allows for the simultaneous use of the same material by different users, minimising
or totally eliminating transportation costs.
In 2007, the station also made a significant advance in the
digital conversion of its library of past programme and shows,
completing the process begun two years earlier. This provides numerous benefits, not only avoiding the deterioration of
historical recordings, but also representing an improvement in
the efficiency of the production process.
First digital production in the tv programme environment
Another step towards total digitalisation has been the first
digital production of a television program, with the pilot experience of “El programa de Ana Rosa”. Plans call for the expansion to the rest of the station’s programmes. This system
introduces an important advance in the writing, editing and
mounting tools that have simplified the process, reducing
times and providing real-time simultaneous availability of audiovisual material across all production processes.
Thanks to the new technologies we have been able to place
all of the audio and video material available to programme
writers for the preparation of the pieces that are subsequently produced. This form of working eliminates tapes in
the programme production process, With all content being
contained in files. Around 5000 tapes in the historical library
of “El programa Ana Rosa” had been substituted for electronic files using this new system.
54
Growth strategy
Technological and process improvements
Renewal of satellite dishes
As part of the technological improvement plan, during 2007
the station substituted the old motorized antennas and part of
the fixed antennas with new systems that are better adapted
for outdoor use, as well as new software remote control systems. These antennas represent a 300% improvement in the
speed of satellite acquisition, with signals for news and other
programmes and the resulting increase in satellite signal traffic
and contributions.
Automation of the hiring of temporary workers
The Human Resource Department in 2007 implemented a
new improvement to the Employee Portal that substitutes
the forms and faxes from the area for requesting the contracting of temporary personnel from Temp Agencies (ETT for the
Spanish initials). The online contracting process represents a
savings in paper use, given that the entire process is electronic, as well improvements in processing times and the quality
of the data, reducing data entry errors and providing greater
control for requests. Currently this new method is being used
by Atlas, Cinematext and Conecta 5, as well as by the Operating Department of Gestevisión, and plans call for it to be
expanded to the rest of the areas with the highest volume of
temporary worker hiring over the next year.
Electronic approval of invoices
Also during the year, Telecinco has implemented the use of the
electronic approval of invoices for high-volume areas, such as
the Technologies Division. Electronic approval eliminates the
intermediate copies of invoices that are made to obtain payment authorisation, a sharp improvement over the current
process of photocopying, sending and return by internal mail.
Gradually the system will be implemented across all Group
departments.
Growth strategy
55
corporate governance
58
Corporate governance
CORPORATE GOVERNANCE
Corporate governance in Telecinco
other body: the approval of the annual budgets
and strategic plan, supervision of the investment
and financing policies and of the corporate structure, supervision of the Corporate Social Responsibility policy, the approval of the remuneration policy
for executive directors and the primary conditions
that should apply to their contracts, performance appraisals of executive directors, monitoring
of risk management and control policies and the
internal information and control systems, and the
approval of the treasury stock policy of Telecinco.
Similarly the Board of Directors must be informed
of the appointment and dismissal of senior management and their contract terms and conditions,
the approval of the periodic financial information
which must be released by Telecinco, the approval
of the creation or acquisition of equity interests in
special-purpose vehicles or companies domiciled in
countries or territories considered as tax havens, as
well as of any other operation or transaction which
may impact on the transparency of the Group, the
authorisation of operations with affiliated entities,
with the exception of those cases mentioned in Recommendation 8, which has also been incorporated into the Regulations,
Since our initial public offering in 2004, Telecinco has strived
to integrate all of the corporate governance recommendations
existing on both the national and international level into its
governance model. A large number of the recommendations
mentioned in the Unified Code of Good Governance of 2006
have already been incorporated.
During 2007, various amendments were proposed to the
shareholders in the Annual General Meeting of April 5th. In
addition, the Board of Directors approved the adaptation of
the Regulations of the Board of Directors to the new recommendations of Corporate Governance by absolute majority.
In all, nine articles of the Bylaws, four articles of the AGM
Regulations, and 18 articles of the Regulations of the Board of
Directors have been amended
The Annual Report on Corporate Governance for the year
2007, available on the corporate website www.inversores.telecinco.es, contains greater detail on the degree of compliance and the modifications made to the bylaws and regulations
to adapt to the new Unified Code. Nonetheless, we have provided a brief summary of the changes made:
With regard to the right of shareholders and the functioning of the Annual General Meeting: we have suppressed
all restrictions to the right to attendance. It is no longer
necessary to hold a certain number of shares to attend the
AGM. We have also introduced the possibility of divided
votes for financial intermediaries and strengthened the
competencies of the AGM, which is the only body with
jurisdiction for approving incorporation of companies dependent on the essential activities developed by Telecinco,
even if Telecinco maintains full control. The AGM is also
the only body with the power to approve any operations
that imply or are equal to the liquidation of the company.
With regard to the Board of Directors:
We have introduced the definition of senior management, independent director and representational
director proposed by the Unified Code,
We have increased the scope of jurisdiction so that
the following matters cannot be delegated to any
The obligations of directors now include that of
reporting on any criminal charges lodged against
them and of the results of the corresponding procedures and the obligation to notify the Appointments
and Remuneration Committee of any other professional occupation and any other boards of directors
on which they hold a seat.
The duration of the appointment of independent
directors has been limited to twelve (12) years and
the appointment must be proposed by the Appointment and Remuneration Committee.
In the event of resignation prior to the end of their
terms, directors must notify Telecinco in writing of
the reasons for the resignation, which shall be made
public by Telefónica. We have also introduced the
59
obligation to reduce the number of representational
directors in proportion to the percentage of equity
sold by the shareholder represented thereby. Similarly, the early dismissal of an independent director
may only be recommended if the independent director does not meet the conditions established under the Unified Code for such position, as reflected
in the Regulations.
We have also introduced the recommendations of
the Unified Code referring to directors fees and
have prepared a report on the matter which will be
submitted to the Annual General Meeting this year,
providing a detailed breakdown of the remuneration
received by each of the directors. This information is
also included in the Corporate Governance report.
The Chairman now has the obligation to provide all
of the directors with all required information on the
matters included on the Agenda sufficiently in advance of the meeting.
The Secretary, non-member secretary in the case
of Telecinco, is required to include any un-resolved
matters in the minutes, to include any matters proposed by any director in the Agenda and to maintain the minutes of the meetings in conformity with
applicable laws and with the Regulations and the recommendations of corporate governance. Similarly,
prior to the appointment of the Secretary, a report
thereon shall be prepared by the Appointments and
Remuneration Committee.
Telecinco has prepared an orientation programme
on the company, the group, and the rules of corporate governance for all new directors.
Lastly, the Board of Directors shall perform periodic
self assessments.
60
Shareholder structure
SHARE CAPITAL OF THE COMPANY
Date of last modification
29-03-2004
Share Capital (€)
Number of shares
Number of votes
123.320.928,00
246.641.856
246.641.856
% of total
SIGNIFICANT SHAREHOLDERS (DIRECT AND INDIRECT) EXCEPTING DIRECTORS
Shareholder name or corporate name
Number
Number of direct votes
of indirect votes (*)
Mediaset Investimenti SPA(1)
123,653,768
0
50.135
Corporación de Medios Audiovisuales, S.L.(2)
32,063,436
0
13.00
0
5,063
5.063
Chase Nominees LTD
5,395
0
5.395
Harris Associates L.P.
5,038
0
5.038
Barclays Global Investors UK Holdings LTD
(1) Indirect holder: Silvio Berlusconi
(2) Indirect holder: Vocento, SA
MEMBERS OF THE BOARD OF DIRECTORS OF THE COMPANY HOLDING VOTING RIGHTS
Shareholder name or corporate name
Number
Number of direct votes
of indirect votes (*)
Mr. Alejandro Echevarría Busquet
12,140
0
0.005
Mr. Paolo Vasile
6,369
0
0.003
Mr. Miguel Iraburu Elizondo
134,600
0
0.055
Mr. Ángel Durández Adeva
6,237
0
0.003
Mr. José Ramón Álvarez-Rendueles
7,000
0
0.003
490
5,050 (1)
Mr. Borja de Prado Eulate
% of total
0.002
% of total votes held by the Board of Directors
0,071
(1) Through Bopreu, S.L.
MEMBERS OF THE BOARD OF DIRECTORS OF THE COMPANY HOLDING OPTIONS ON SHARES
Director
Number
Number Number
% of total
of direct options
of indirect options
share equivalents
votes
198,588
0
198,588
0.081
Mr. Paolo Vasile
397,175
0
397,175
0.161
Mr. Giuseppe Tringali
397,175
0
397,175
0.161
Administrative structure of the company
61
suales S.L., with 13%, together holding a total of 63.135%
of total share capital.
Composition of the board of directors
The Board of Directors is comprised of 13 members, two of
which are executive directors, seven are representational directors, and four are independent directors. No directors have
been named or appointed upon the proposal of shareholders
holding less than 5% of capital. Similarly, Telecinco has not
received any formal request for a presence on the Board of
Directors by any shareholders with a number of shares that is
the same or higher than those shareholders that do currently
have representation on the Board of Directors.
There are no female members of the Board of Directors of
Telecinco. All members were appointed in 2004 for a five-year
term and there have been no vacancies since that time. Various measures were adopted in 2007 in order to establish
the measures to correct this circumstance in the future. For
example, the Regulations of the Appointments and Remuneration Committee now include the obligation of informing
the Board of Directors of matters regarding gender diversity,
assuring that there are no obstacles or barriers to the appointment of women to the position of Director. In addition the
Committee must provide incentives to Telecinco to include
women with an appropriate professional profile on the short
list of candidates.
The Board met six times during 2007. There were no dismissals
or resignations during the year and all meetings were attended by both the Chairman and the non-member Secretary.
In order to better understand the structure of the Board of
Directors of Telecinco, as in previous reports, please note that
executive directors represent 15.384%, representational directors account for 53.846% and independent directors account for 30.769%. This distribution attempts to reflect the
current composition of the shareholders of the company, with
two shareholders, Mediaset Investimenti SPA, with 50.135%
of share capital and Corporación de Nuevos Medios Audiovi-
MEMBERS OF THE BOARD OF DIRECTORS iN 2007
Name
Position
Condition
Date of first Date of last
appointment
appointment
Chairman
Representational
15/05/1996
29/03/2004
Mr. Paolo Vasile
CEO
Executive
29/03/1999
29/03/2004
CEO
Executive
29/03/2004
29/03/2004
Mr. Giuliano Adreani
Director
Representational
26/09/2001
29/03/2004
Mr. Pier Silvio Berlusconi
Director
Representational
07/05/2003
29/03/2004
Mr. Fedele Confalonieri
Director
Representational
21/12/2000
29/03/2004
Mr. Marco Giordani
Director
Representational
07/05/2003
29/03/2004
Mr. Alfredo Messina
Director
Representational
30/06/1995
29/03/2004
Mr. José María Bergareche Busquet
Director
Representational
17/03/2000
29/03/2004
Director
Independent
20/05/2004
29/03/2004
Mr. Miguel Iraburu Elizondo
Director
Independent
20/05/2004
29/03/2004
Mr. José Ramón Álvarez-Rendueles
Director
Independent
28/07/2004
22-04-2005
Mr. Borja de Prado Eulate
Director
Independent
28/07/2004
22-04-2005
62
Committees of the board of directors
There were no changes in the composition of the committees
of the Board of Directors during 2007, with each having the
same members and functions as indicated as in our previous
annual report.
EXECUTIVE COMMITTEE
Name
Position
Chairman
Mr. Paolo Vasile
Member
Member
Member
Member
Mr. José Mª Bergareche Busquet
Member
Mr. Miguel Ángel Iraburu Elizondo
Member
AUDITING COMPLIANCE COMMITTEE
Name
Position
Member
Member
Mr. José Mª Bergareche
Member
Mr. Marco Giordani
Member
Mr. Alfredo Messina
Member
APPOINTMENTS AND REMUNERATION COMMITTEE
Mr. Miguel Ángel Iraburu Elizondo
With the support of the Audit and Compliance Committee, the
Internal Audit Department uses a Corporate Risk Management
System that is applied uniformly across all group companies. This
system is revised and updated periodically.
Corporate risk management is based on the principles of “COSO
II Enterprise Risk Management” (Committee of Sponsoring Organizations of the Tradeway Commission). Telecinco permanently
monitors the risks, evaluates their relevance and potential impact
on the group companies, the probability of occurrence, and the
degree of control existing on each.
Based on the Corporate Risk Management System and the type
of risks identified and managed within the Telecinco Group, risks
are categorised in accordance with the following classification:
Chairman/
Independent Director
Name
appropriateness of the financial reporting process and internal
control systems.
Position
Chairman/
Strategic Risks: Those risks relating to the Group’s objectives and aligned with the mission of the Group;
Operating Risks: Those relating to the efficient use of the
resources of the Group;
Reporting Risks: Those risk relating to the reliability and
integrity of reporting, both internal and external, financial or otherwise, provided by the Group to its stakeholders, and
Compliance Risks: Risks relating to the Group’s compliance with applicable laws and regulations.
Independent Director
Member
Member
Mr. José Mª Bergareche Busquet
Member
The risks identified and managed by the Telecinco group companies are as follows:
The risk derived from the obligation of annually investing
a percentage of gross income in Spanish and European
films.
Risk control systems
As part of its general oversight function, the Board of Directors
has the particular mission of identifying the primary risks faced
by the Telecinco Group and to implement and oversee the internal information and control systems and other required reporting
systems. In addition, one of the basic responsibilities of the Audit
and Compliance Committee assure and confirm the integrity and
The lack of a stable legal framework on the rights that can
be claimed by the companies, associations and other entities responsible for managing intellectual property rights.
The sensitivity of advertising spend to economic cycle
and national and international economic development.
63
Variations in market conditions, new media competing
with open broadcasters, change in consumption habits
by consumers, etc.
Progress in compliance with corporate
governance recommendations
The following table provides a summary of the progress made
in the level of compliance with the recommendations for Corporate Governance included in the Unified Code of Corporate Governance.
Further information is available in the Annual Corporate Governance Report of Gestevisión Telecinco S.A., as well as in
the Bylaws, the Regulations of the Annual General Meeting
and the Regulations of the Board of Directors, among others,
all of which may be consulted on the Telecinco website:
www.inversores.telecinco.es.
The following table indicates the progress made through the
end of 2007; progress achieved during 2007 is highlighted.
64
Nº
RECOMMENDATION
COMPLIANCE
SECTIONS OF THE CG REPORT
Bylaws and AGM
1
Attendance limits.
<
A.9; B.1.22; B.1.23; E.1; E.2
2
Reporting requirements for publicly traded parent company or subsidiaries.
<
C.4; C.7
3
Competencies of the AGM. <
4
Prior information on proposals.
<
5
Separated voting.
<
E.8
6
Dividing votes.
<
E.4
Board of Directors
7
Defence of the company’s best interest by the Board.
<
8
Competencies of the Board. <
B.1.10; B1.13; B1.14; D.3; C.1; C.6
9
Size of the Board.
<
B.1.1
10
Functional structure of the Board.
<
A.2; A.3.; B.1.3; B.1.14
11
Other classifications of Directors
<
B.1.3.
12
Proportion of representational and independent directors.
<
B.1.3.; A.2; A.3
13
Sufficient number of independent directors
<
B.1.3
14
Explanation of the character of the directors.
<
B.1.3; B.1.4
15
Gender diversity. <
B.1.2; B1.27; B.2.3
16
Competencies of the Chairman.
<
B.1.42
17
Executive chairman and calling meetings <
B.1.21
18
Secretary: Obligations and appointment/dismissal.
<
B.1.34
19
Meetings: frequency, proposal of matters not on the agenda.
<
B.1.29
20
Meetings: absences.
<
B.1.28; B.1.30
21
Meetings: Minutes
<*
22
Periodic self-assessment.
<
B.1.19
23
Rights of Directors: additional information.
<
B.1.42
24
Rights of Directors: advisory.
<
B.1.41
25
Writes of new directors: orientation.
<
26
Dedication of the directors.
<
B.1.8; B.1.9; B.1.17
B.1.2
Directors
27
Appointments and Remuneration Committee: Appointment and re-election of directors.
<
28
Public information on directors.
<
29
Rotation of independent directors.
<
B.1.2
30
Appointment and dismissal: representational directors.
<
A.2; A.3; B.1.2.
31
Appointment and dismissal: dismissal of independent directors.
<
B.1.2; B.1.5; B.1.26
32
Information and resignation: criminal proceedings.
<
B.1.43; B.1.44
33
Appointment and dismissal: conflicts of interest
<*
34
Notification of resignation
<*
B.1.5
35
Remuneration: approval and transparency system
<
B.1.15
36
Criteria: share distribution.
<
A.3; B.1.3
37
Criteria: amount of remuneration.
<
38
Criteria: decline in earnings.
<
39
Criteria: technical clauses for variable remuneration.
<
40
Remuneration: consultation vote in the AGM.
<
41
Transparency of individual remuneration.
<
65
B.1.16
Board of Directors Committees
42
Executive Committee: structure of participation.
<
43
Executive Committee: reporting to the Board. <
B.2.1; B.2.6
44
Supervision and Control Committees: Appointments and Remuneration.
<
45
Supervision and Control Committees: supervision of codes of conduct and governance rules. <
46
Audit and Compliance Committee: Chairman and members.
<
47
Audit and Compliance Committee: internal audit Department.
<
48
Audit and Compliance Committee: annual work plan.
<
49
Audit and Compliance Committee: risk policies and management.
<
D
50
Audit and Compliance Committee: functions.
<
B.135; B.2.2; B.2.3; D.3
51
Audit and Compliance Committee: powers.
<
52
Audit and Compliance Committee: transparency of operations.
<
B.2.2; B.2.3
53
Audit and Compliance Committee: Auditor and Annual Accounts.
<
B.1.38
54
Appointments and Remuneration Committee: majority of independents.
<
B.2.1
55
Appointments and Remuneration Committee: functions.
<
B.2.3
56
Appointments and Remuneration Committee: appointment of members.
<
57
Appointments and Remuneration Committee: functions
<
58
Appointments and Remuneration Committee: executive directors and senior management.
<
B.2.1; B.2.3
B.1.14; B.2.3
< Complies
< Partially complies
< Explain
< No applicable
*The recommendations classified as “not applicable” due to the lack of any circumstances during 2007 that required reporting. Nonetheless, in all cases Telecinco has introduced
the modifications into the bylaws and regulations that include the circumstances considered and the related recommendations of the Unified Code.
corporate social responsibility
68
Corporate social responsibility
CORPORATE SOCIAL RESPONSIBILITY
Telecinco and CSR
In an increasingly complex audiovisual environment, the ability
to listen, understand and incorporate new social demand has
allowed us to offer audiovisual products that are more closely connected to the sensitivity of the population. This also
represents an added advantage for the attraction, retention
and development of talent, the rationalisation of our internal
processes and the responsible use of resources, allowing us to
present the market with a model company that is transparent
and committed to permanent improvement.
Since we first launched the initiative “12 meses, 12 causas”
(12 months, 12 clauses) eight years ago, Corporate Social Responsibility (CSR) in Telecinco has continually evolved year after
year, becoming a much wider and more complex concept permeating all aspects of television broadcasting.
In 2007, Telecinco continued to progress in the integration of
CSR into the singular nature of its business model and sceptre
of activity. To this end, Telecinco began to study the peculiarities of its sector, commercial broadcasting, without any clear
national or international references, given that the existing
standards and initiatives (e.g. Global Reporting Initiative or the
United Nations Global Compact)are only partially applicable.
As part of this process, Telecinco sought the answer to various
questions on how commercial broadcast television can and
should contribute to sustainability. What is happening in the
sector? What is the role of the communications media in this
new context? What are the duties, challenges and opportunities facing the company in the future to respond to these
new challenges? To answer these questions, in February 2007,
Telecinco created a workgroup comprised of senior executives
of the network, consultants and academic experts in Corporate Social Responsibility with the goal of, among other things,
developing a specific survey of the company stakeholders1.
One of the side benefits of this internal analysis has been to
consolidate the organisational structure of CSR in Telecinco.
The previously created Corporate Social Responsibility De(1)
The conclusions of the fieldwork will be reflected in a specific publication on
sustainability in the commercial television sector to be released in mid 2008.
partment has been transformed and is now known as the
Corporate Social Responsibility and Governance Department
answering to the General Secretariat of the Board of Directors.
This department is in charge of coordinating all of the areas
involved in managing CSR within the company, excepting the
initiative “12 meses, 12 causas” (12 months, 12 clauses) and
the associated Foundation, which are managed by the Communications and External Relations Department, which answers directly to the Chief Executive Officer. This framework
continues to place CSR at the highest levels of the company.
Commitment to external initiatives
United Nations Global Compact
The Global Compact is an initiative launched by the former
Secretary-General of the United Nations, Kofi Annan, in a
speech given at the World Economic Forum at Davos challenging business leaders to join an international initiative that
would bring companies together with UN agencies, labour
and civil society to support universal environmental and social
principles.
Telecinco signed on to the initiative in 2006, wholly integrating Global Compact’s ten principles in the areas of human
rights, labour, the environment and anti-corruption. The network was the first private television broadcaster to subscribe to the Global Compact and the only television company
with a category of “associate participant”, indicating its commitment goes beyond the adoption of the 10 Principles to
actively contribute in encounters and events organised by the
Global Compact local network, the Asociación Española del
Pacto Mundial (ASEPAM), as well as in its financing.
Global Reporting Initiative
In 2007, Telecinco gave a further step in the preparation of
its annual report, fully conforming to the latest version of the
international standard Global Reporting Initiative (GRI), G3
version. This standard, which is periodically updated to sure
its quality, credibility and benevolence, offers a reporting guidelines that allow for comparisons to be made between the
social, environmental and financial indicators included in the
annual reports. By applying this standard, Telecinco guaran-
tees that all relevant information in these areas are included,
increasing the quality and usefulness of its Annual Report.
69
investment fund, a product of the Dutch investment bank
that observes the social and environmental commitment of
the companies.
Fundación Empresa y Sociedad
Telecinco is a member of the Fundación Empresa y Sociedad
(Company and Society Foundation). The Foundation provides
a framework for companies committed to continuous improvement in their social activities in those of the business sector
in general, as well as specifically promoting the integration of
society’s disadvantaged.
The Foundation and Servimedia have published the fourth
edition of the study “Press Treatment of Business Activities
Relating to the Integration of Disadvantaged Persons during
2007” which highlights the efforts of Telecinco as the television network that best reports on social projects and subjects,
in recognition of the “12 months, 12 clauses” initiative.
Also in 2007, Telecinco received an award in the second edition of the Randstad Foundation awards for social action in the
Communications Media category. This award recognises the
efforts of companies in the workforce integration of people at
risk of exclusion, such as the handicapped, immigrants, single
mothers and caregivers, long-term unemployed, and people
over 45 years of age, as well as their activities in increasing the
awareness of society regarding this problem.
Dialogue with stakeholders
The main channels of communication and dialogue with Telecinco stakeholders include the following:
Employees
Awards and recognition
in 2007, Telecinco was awarded the “SRI” seal (“Socially Responsible Investment) by the Dutch investment bank Kempen
& Co., which recognizes companies that show a marked social
commitment through their corporate social responsibility policy. Telecinco was included in the Kempen SNS Smaller Europe
SRI Index, the first European index of low cap companies that
stand out for their business ethics and contribution to social
development and environmental protection.
The index provides detailed and objective information on
the socially responsible actions of European companies, and
aspect increasingly demanded by investors that are concerned with the social value that companies provide in their
financial results.
To qualify for the index Telecinco had to pass strict selection
criteria. The socially responsible behaviours of Telecinco that
were recognised included the reduction in the use of energy
and the substitution of electric lighting on the stages and
sets for energy derived from solar panels installed on the
roof tops of Telecinco buildings. These activities have also
led to the selection of Telecinco for the “Orange SeNSe”
One of the main communication channels for communicating
with employees is the corporate intranet, Cinco.net, thanks to
the immediacy of the communications and the large volume
of users. The intranet was renovated in 2007 and structured
into three primary sections: corporate information (information on all of the companies in the Group, the departments
into which they are divided, computer applications, etc.), services (telephone numbers, time management, group websites, sports clubs, etc.) and daily information (memos, press
releases, audience, etc.).
Another internal communication tool that contains all of the
useful information needed by employees is the Employee Portal: personal data, payroll, professional development, training,
vacations, absences, time management, etc... For those employees who do not have direct access to a computer, Telecinco has established a computer room with five workstations
with access to Cinco.net, the Employee Portal and Internet.
Another channel is the internal corporate magazine, Punto
de Encuentro (PdE), which is issued quarterly and targeted
to all group personnel and external companies. All three of
these channels, magazine, intranet and employee portal,
70
have a suggestion box where personnel can inform the Internal Communications Department of their opinions and
suggestions.
We will also place bulletin boards in high traffic areas near the
studios (cafeteria and dining hall) where the company posts
the latest news as well as other permanent information such
as the organizational flow charts and holiday schedule. This
information, with a characteristic design and format, are also
distributed through Cinco.net.
Additionally, information meetings are held, particularly in the
companies of the Publiespaña Group.
Shareholders
The various dialogue channels allow us to learn the interest
of the shareholders and to inform them of our financial situation and CSR activities. In the Investor Relations Department
Sends out Quarterly Reports to Financial Analysts, Institutional Investors, Individuals and the Spanish Exchanges Once
the Information Has Been Reported to the Spanish National
Stock Exchange Commission (CNMV) and is posted on the
corporate website.
During 2007 more than 30 financial institutions regularly publish financial analysis on Telecinco, maintaining continuous
monitoring of the financial and operating development of
the company. We have held more than 350 meetings with
analysts and fund managers, 13 conferences and two road
shows in United States and the United Kingdom.
Once again in 2007 Telecinco was recognised by the European
communications media for its shareholder care. Institutional
Investor magazine ranked Telecinco in the number two spot
on the ranking of “The top European shareholder-friendly
companies of 2007”.
INSTITUTIONAL INVESTOR. THE FRIENDLIEST COMPANIES,
IN THE EYES OF SHAREHOLDERS 2007
Rank
1
Company Name
Reuters Group
2
Gestevisión Telecinco
3
Wolters Kluwer
4
Yell Group
5
Reed Elsevier
Advertisers
The relationship between Telecinco and its advertisers is governed by the Agreement on the Procedures for the Commercialisation and Management of Advertising Spaces on
National General Television Stations signed with the Spanish
Association of Advertisers (AEA) in 2005 to promote a greater
balance in the contracting, Ward and management of advertising space.
Another of the channel’s commitments with advertisers, first
launched in October 2003, is the “Allocation Guarantee”
“(GARAD), which guarantees advertisers that their advertising
campaigns will be broadcast on Telecinco with the precedence
established by agreement between the parties. In addition to
allowing for a dialogue between Telecinco and its advertisers,
GARAD also reflects the emphasis that Telecinco places on the
transparency of its relationship with the stakeholders.
Viewers
Telecinco uses various channels and quantitative and qualitative
research tools in order to be in permanent and direct contact
with its viewers and to be able to gauge their opinions. One
of the quantitative research tools is the daily audience ratings,
the General Media Study (on a quarterly basis and based on
personal interview of a sample of 48,000 people) and ah-hoc
research (based on predesigned questionnaires directed at finding information on a particular aspect of programmes). The
qualitative techniques focus on audience evaluations, opinions,
attitudes and judgments on the TV channel’s programmes. The
most common research tools are discussion groups, panels of
experts, in-depth interviews and ethnographic studies.
In addition, Publiespaña in 2007 began to publish a magazine Top Spot, edited by its Customer Loyalty Department as
a communications channel with customers in the market in
general. The magazine contains reports on programmes and
series broadcast by the channel, interviews with leading personalities, reports on the audiovisual sector in Spain, and other
information of interest.
Telecinco also belongs to the Association for the Self-Regulation
of Commercial Communications (Asociación para la Autorregulación de la Comunicación Comercial - www.autocontrol.es),
a watchdog group that oversees broadcast advertising in the
benefit of advertisers, consumers, and society in general.
Competitors
Telecinco collaborates with its competitors in various initiatives relating to the development of television broadcasting
activities. We would particularly highlight our membership in
the Union of Associated Commercial Television Broadcasters
UTECA for its Spanish initials (www.uteca.com), together
with, Antena 3, Sogecable, La Sexta, Net TV and Veo TV. The
rotating presidency of UTECA during 2007 fell to Alejandro
Echevarría, chairman of Telecinco, which allowed the channel to play a prominent role in all of the initiatives developed
by the Union.
UTECA defends the common interests of commercial broadcasters on the national, European and international level, with
members regularly qua operating and exchanging information
and collaborating on the development of measures to promote commercial television.
Another of the agreements signed by Telecinco is the “Good
Practices in Advertising Agreement”, signed between Telecinco, Antena 3 and RTVE and the Spanish Association of
Advertisers.
Suppliers
Suppliers are an important stakeholder group for Telecinco,
comprised primarily of specialised production companies that
supply the station with a large part of its programming content. The channel maintains fluid communication with these
companies given that coordinating and maintaining the criteria on the production of content is idle for guaranteeing compliance with the channels commitments in responsibility and
avoid that the content consists of independent actions.
Lastly, as for any service company, Telecinco maintains relationships with other types of suppliers, applying the same
code of conduct.
71
tiatives to represent its interests in the audiovisual market,
in which regulation plays a very important role. The main
channel used is the above-mentioned Union of Associated
Commercial Television Stations, which maintains an open
channel with the various administrations in order to defend
and represent the common interests of the private television
networks.
Social Organisations
The main channel used for Telecinco’s social action is the campaign “12 meses, 12 causas”, and the awards and Foundation
of the same name, through which the channel has collaborated with numerous social organisations. The awards also
represent a channel for dialogue with other entities, annually recognising the social activities of people and institutions.
Specifically, 2007 Telefónica Foundation was recognised for
its solidarity.
Other collaborative efforts such as the channel’s membership
in Fundación Empresa y Sociedad and its collaboration with
the Spanish Cancer Association, allow Telecinco to create closer ties to these types of organisations.
Between the months of May and September 2007, Telecinco
carried out its first Stakeholder Survey in order to identify the
most relevant aspects relating to the Company’s sustainability strategy.
The survey process was guided by the principles of the October 2006 version of the sustainability report guidelines of the
Global Reporting Initiative (GRI) and the AA1000 Assurance
Standard by AccountAbility.
The survey was performed using four workshops with representatives of stakeholder groups in the communications media sector (advertisers, viewers, suppliers, shareholders, etc.).
The structure followed for the groups was as follows.
A. The television business
Advertisers, Agencies, Producers, Shareholders, Ratings
Government and regulatory bodies
analysts.
Telecinco maintains open communications with various
regulatory and government agencies through various ini-
B. Television programming
Programmers, Writers, journalists, Producers.
72
C. The impact on society
The CSR agenda of Telecinco
Viewer Associations, Trade Unions, Government
The conclusions of the Stakeholder Survey, together with the
internal reflection process and the experience required by the
station in recent years in CSR, have all allowed Telecinco to
more precisely define the corporate strategy for Corporate
Social Responsibility. The conclusions are summarised in the
following chart, which highlights the primary matters included
on the CSR agenda of the company and reflects the progress
represented by this reflection in comparison with the agenda
in previous years.
D. Corporate social responsibility
Leading companies in CSR, Specialists, CSR associations
and promoters
We also analysed numerous documents, focusing on the annual reports of European commercial television companies in
order to identify those matters considered as most relevant within the industry context. This was complemented with a series
of in-depth interviews with opinion leaders. The result was the
identification of the following relevant matters:
Common aspects for all sectors
The human side of Telecinco
1. Protection of childhood and adolescence
in the content broadcast
2. Reflecting social and cultural diversity in programming
3. Responsible broadcasting of advertising
4. Support for the community
5. Promotion of education and culture
6. Awareness of the challenges of sustainability
7. Dialogue with stakeholders
8. Responsible H. R. management
9. Transparency
10. Management of environmental impact
11. Accountability
Our people are one of the true bastions of strength of Telecinco. With them. all of our innovative ideas are born and developed and though them Telecinco has become a different and
special place to work. Our workforce in 2007 was comprised
of 1195 people, somewhat more than in previous years and
almost all working in Spain. The average age at the close of
the year was approximately 38.14 years, with an average time
in service of 10.37 years. As in previous years, these averages
increased in 2007. This shows the concern of Telecinco for job
security, which has a direct impact on employee satisfaction
and performance. Our commitment to stable employment
can also be seen from the high percentage of indefinite contracts, 97.07% of the total.
The following sections describe the manner in which Telecinco approaches these matters.
Transparency
Community Support
Management of enviromental
impact
Common aspect for all sectors
ACCOUNTABILITY
DIALOGUE WITH STAKEHOLDERS
Responsable H.R. Management
TELECINCO CSR STRATEGY
Aspects especIfic to television
Responsible broadcasting of content
Reflecting social and
cultural diversity
in programming
Protection of
childhood and
adolescence
Responsible
broadcasting of
advertising
Broadcasting of responsible content
Promotion of education
and culture
Awareness of the challenges
of sustainability
As regards the distribution of the work force in 2007 between
men and women, women accounted for 45.69% of the total
(546 / 1195). Equal opportunity is a core value of Telecinco.
BREAKDOWN OF WORKFORCE BY CATEGORY AND GENDER
Category
Men
2006
Women Total
2007
Men
67
22
89
71
27
Department heads
44
48
92
35
51
86
Journalists 47
64
111
54
72
126
892
489
396
885
649
546 1,195
486
406
TOTAL
644
540 1,184
98
NATURE OF THE TELECINCO WORKFORCE (*)
Indicators
2005
2006
2007
Average workforce (# of people)
1,185
1,184
1,195
Average age (years)
37.16
37.75
38.14
Average time in service (years)
9.43
9.72
10.37
Proportion of female employees (%)
45.1
45.6
45.6
Proportion of indefinite contracts (%)
97.04
98.23
97.07
0.67
1.35
0.92
Average employee turnover
(number of losses / avg. Annual workforce)
(*) The data for 2005 and 2006 are slightly different than those contained in this
year’s report given that this is the first year that we are including decimals.
BREAKDOWN OF WORKFORCE BY AGE
Years Men
Women
>60
2
3
56 to 60
9
6
51 to 55
28
12
46 to 50
67
27
41 to 45
161
115
36 to 40
196
165
31 to 35
122
126
26 to 30
60
78
<25
5
12
650
544
TOTAL(1)
different employee programmes focuses on key questions in
the communications media industry, such as work-life balance, company benefits, training and professional development,
internal communications, equal opportunity and human
rights, labour relations and freedom of association, on-thejob health and safety, etc.
Women Total
Executives
Staff 73
Work-life balance and employee benefits
The people most likely to be affected by work-life imbalance are women, who frequently have to face the dilemma
of choosing between maternity and their professional careers. To overcome this difficulty and avoid discriminatory
practices, Telecinco has adopted various measures to allow
for professional development in accordance with our equal
opportunity policy.
Within this context, in the second half of 2007 we decided to
perform an analysis and diagnostic of the situation regarding
equal opportunity and treatment for men and women among
all of our Group companies. Based on the resulting snapshot,
in the beginning of 2008 both Gestevisión Telecinco and Atlas
España (as per the corresponding collective bargaining agreements) will negotiate Equality Plans which will, among other
things, lead to the implementation and application of additional measures to correct eventual discriminatory situations and
improve the promotion of women within the company.
This is taking place within the same year that the new Organic Law on Equality between Women and Men was enacted
in Spain. This law introduces improvements in certain areas
relating to labour situations and establishes active policies to
avoid discriminatory practices. Nonetheless, well before the
publication of this law, both the collective bargaining agreements in force for Telecinco and those approved in 2007 had
already included improvements that surpass the legal requirements of the new law in many areas.
(1) The total equals 1,194, the total workforce at 31 December.
Telecinco’s Human Resources and Services Division consistently works to promote the continuous improvement of the
Group’s professionals, the source of our talent, initiatives,
competitiveness and added value. The development of the
In 2007, Telecinco equalised the financial conditions for paternity, complementing the Social Security benefit in order
to assure that the employee receives the full salary while on
74
leave. Paternity leave is now 13 consecutive days in the case
of birth, foster care or adoption. These measures represent a
further step towards effective equality among all employees
regardless of gender.
The following table highlights a few of the other work-life
balance measures adopted by Telecinco:
CONCILIATION MEASURES
Measure
Workday reduction for child care
No. of beneficiaries 2007(1)
75
Family care leave 2
Cumulative nursing leave
38
Flexible working hours
406
(1) The number of beneficiaries is based on the use of the conciliation measures
established by law or bargaining agreement applicable to the different companies
of the Telecinco group
In order to help create an appropriate work environment
within the company and favour the commitment of our employees, Telecinco has established a series of voluntary improvements. These benefits are enjoyed by all of the employees
directly hired by the Group companies, regardless of whether
the contract is temporary or indefinite, and may vary according to the applicable collective bargaining agreement.
These benefits include:
Term life insurance for all Group employees.
Salary complement for temporary disability, complementing the Social Security benefit up to 100% of the salary,
with the exception of the job position complement.
Salary complement for maternity or paternity leave.
Scholarships, including language study.
Employee dining hall for all Group employees on work days.
Special salary advances, in addition to standard advances, for special situations (buying of first home, health
care expenses for the worker or immediate family...)
Subsidies for sporting activities.
Employee coach service.
Employee Club, offering numerous benefits such as discounts, special pricing and promotions on products, club
memberships, events...
Special parking for pregnancies.
Subsidised private medical insurance for Group executives.
Special summer hours and short workday on Fridays.
Training and professional development
Telecinco is firmly committed to the professional development of all its employees across all professional categories.
This commitment is implemented, primarily, through the
annual Training Plan which contains all of the training actions planned for the year. The plan is designed to meet
the needs for adaptation demanded by our business activities, improve recruitment and retention and provide for
the continued professional development of our employees
through training in professional competencies and the
learning of new management skills and techniques, and,
in general, to contribute to a more humane, efficient and
positive work environment.
Training
The Annual Training Plan is designed and prepared in meetings between executives and the representatives of the workers. The design takes into account the recommendations
received through the employee intranet portal. The plan is
structured into different types of training: technical, general,
skills, languages, computer applications, and masters programmes. During 2007, there were a total of 32,424 training
hours and 852 participants, representing a high percentage
of the workforce.
Another aspect of the professional development programmes are the agreements between Telecinco and 43 different
educational institutions, including universities and business
schools. As part of the agreements, 325 students performed
internships with the channel during 2007 and now form part
of a pool available to Telecinco to cover future vacancies.
TRAINING ACTIVITIES
Activity
Group training
Seminars and conferences
Masters programme
Beneficiaries (1)
1,373
215
5
Languages 174
Online training
10
Employee scholarships
73
important action during the year has been the continuous
improvement of one of our most important channels, the
corporate intranet: Cinco.net. In response to the high level
of use and utility, we have made various improvements to
the design and interactivity and have added numerous useful applications for the employees. We will also strengthen
the use of this tool for the dissemination of changes in the
company, both on the level of infrastructure (in 2007 we prepared the internal communications plan on new accesses to
the Fuencarral complex), and on the level of organisational
changes (appointments, structure, etc.). In this way the employees have immediate access to all information that may
concern them in any way.
(1) One person may be a beneficiary of more than one course or activity.
TRAINING HOURS BY PROFESSIONAL CATEGORY
Executives
5,130
Department Heads
3,542
Technicians
18,940
Operators
80
Journalists
817
Temps
TOTAL
75
3.915
32,424
Retention of talent
In order to help retain the true talent of Telecinco (its employees), we strive to ensure that we consistently maintain favourable working conditions as described above. In addition,
all of the Group companies, in general, carry out professional
development actions for talented personnel in order to increase their potential for accessing key positions. For example, in
2007 Grupo Publiespaña introduced a new Skill Assessment
System to allow employees to know the objectives and principles that should guide their actions and help in their professional development.
Another fundamental element of our talent retention policy is to apply an attractive remuneration policy. According
to various studies of the industry, Telecinco occupies a very
competitive position for total remuneration of key positions in
comparison with other companies in the industry. The variable
part of the total salary (bonuses linked to personal or company
objectives) for key positions can equal as high as 50% of the
fixed salary. Other retention measures include employee stock
options and deferred or long-term bonuses.
Internal communications:
the relationship with the employees
Internal Communications were a core priority for Telecinco
in 2007 and will continue to be so in the future. The most
On the print side, the internal magazine Punto de Encuentro
(PdE) is an excellent communications channel that is highly
valued by the employees, the true stars of its pages. The magazine is published quarterly and includes news on the company and the business, information on employees and their
initiatives, recognition of their efforts, etc. The magazine has
become a true point of reference for all of the main events
occurring in the company throughout the year.
There are other Internal Communications tools designed
to promote the awareness, integration and motivation of
employees, such as the Employee Portal and the Bulletin
Board.
Equal opportunity and human rights
Telecinco does not allow for any form of discrimination within
the company and applies a policy of equal opportunity in all
aspects of management. For example, we would highlight
our policy of equal salaries regardless of gender resulting from
our strict compliance with the criteria established in the salary
tables of the collective bargaining agreement, which assigns
salaries to professional Category without any indication of
gender. The company also follows a strict policy of hiring and
promotion based on equal opportunity for all and eliminating
any possibility of any discrimination due to race, sex, religion
or physical handicap.
76
HANDICAPPED WORKERS BY CATEGORY
2005
2006
2007
Executives
1
2
2
Department heads
1
1
1
Journalists 0
0
0
Staff 5
5
6
TOTAL
7
8
9
With respect to other factors that could limit the human rights
of any groups, it is significant that the activity of the company and its location do not imply any risks of forced labour.
However, due to the entertainment nature of the business
of the channel, child actors and entertainers are occasionally
employed. In these cases, Telecinco complies with and strictly
enforces all legal requirements. Specifically, the law prohibits
anyone under 16 years of age to work, with few exceptions,
one of them being: “the participation of minors in public entertainment is only authorised by the labour of authority in
exceptional cases and provided that there is no danger for the
physical health or professional and human training. Permission must be in writing and for specific acts”.
In addition to the legal guarantees, the Joint Prevention Service of
the Telecinco Group has prepared a protocol that is applicable to
all cases of child labour, including child actors and entertainers.
As a member of the United Nations Global Compact, Telecinco, in addition to supporting the elimination of forced labour
and the eradication of child labour, strives to promote best
practices in human rights across the entire production chain.
Labour relations and freedom of association
The entertainment industry has a certain tradition of labour
conflicts and Telecinco makes a committed effort to guarantee
the appropriate representation of its workers and maintain a
high level of fluidity in its relationships with worker representatives and in collective bargaining.
tive Bargaining Agreement of Gestevisión Telecinco and the
4th Collective Bargaining Agreement of Atlas España, both
approved with the majority backing of the workforces of both
companies. These agreements replace the former CBA’s, now
expired, and shall be in force from January 2008 until December 2010. This is a huge step towards the continuation of
peaceful labour relations over coming years.
These agreements were achieved quickly without drawnout negotiations, demonstrating the high level of responsibility of the company and the workers representatives in
establishing a framework for the working conditions of
the workforce. Telecinco respects and closely collaborates
with union representatives in the exercise of their functions,
always complying with applicable legislation and with the
firm belief that this represents an added value for our business activities.
The collective bargaining agreements do not expressly established a minimum prior notification for changes in the organisation. Occasional changes are notified following criteria of
minimal negative impact on the members of the organization.
The total number of employees covered by a collective bargaining agreement is 92.22%.
EMPLOYEES COVERED BY A COLLECTIVE BARGAINING
AGREEMENT (CBA)
Employees covered by the Company CBA
871
Employees covered by the Industry CBA
231
Employees covered by the Office Worker’s CBA
44
Employees covered by the Advertising Worker’s CBA
187
COMPANY AND INDUSTRY COLLECTIVE BARGAINING
AGREEMENTS APPLICABLE TO EACH GROUP COMPANY
Company
Gestevisión Telecinco
Atlas España
Cinematext and Conecta 5
Publiespaña, Publimedia and Advanced Media
The degree of maturity achieved in this regard can clearly be
seen from the signing in December 2007 of the 8th Collec-
CBA
7th Company CBA
3rd Company CBA
Office Worker’s CBA
Advertising Worker’s CBA
77
Health and safety
Telecinco has instituted a Joint Prevention Service that assumes all of the preventative specialisations contemplated under
current rules and legislation and provides services to Gestevisión Telecinco S.A., Atlas España S.A., Publiespaña S.A., Publimedia Gestión S.A., Advanced Media, Conecta 5 Telecinco,
Mediacinco Cartera, Cinematext Media S.A. and Telecinco
Cinema. The service is in charge of assuring that all human
and material resources are appropriate for the development
of their particular purposes.
The Group has established a risk prevention policy that provides the main guidelines and a Annual Risk Prevention Plan,
which establishes the specific targets to achieve. Both are
approved by senior management and presented to the Health
and Safety Committee. The participation processes for prevention delegates is performed through the existing Health and
Safety Committee, which represents 962 employees.
The areas of responsibility assumed by the Service are:
Fire protection (manuals for automatic elements).
Emergency measures.
Ensuring appropriate training and awareness of detected
risks for each position.
78
TRAINING 2007
DEPARTMENT
TRAINING ACTION
People
Hours
Technical Maintenance and Facilities Technicians
Working with electricity
23
4
92
Fire fighting
24
8
192
Survival and hostile environments
6
40
240
PCI Regulations for Industrial Installations
2
14
Second-level intervention teams (various departments)
Atlas
Joint Prevention Service
Total (hours)
28
TOTAL
552
Organisation and Management of Prevention. In order to achieve the full integration of prevention across all levels of the company hierarchy, a
clear assignment of functions and responsibilities within the company has been implemented.
Periodic Risk Control.
Investigation and management of accidents, proposing corrective measures and statistical analysis thereof.
ABSENTEEISM, ABSOLUTE VALUES 2006
WORKER(*) LACB
LAIT
CI
NLA
MAT
ABSENTEEISM, ABSOLUTE VALUES 2007
PD WORKER(*) LACB
LAIT
CI
ANL
MAT
PD
14
251
11
18
1
198
67
2
13
1
143
1
1
23
1
1
41
1
8
1
GESTEVISIÓN
766
13
9
244
5
19
1
755
ATLAS
199
0
3
69
0
7
0
PUBLIESPAÑA
135
0
1
24
1
PUBLIMEDIA
32
0
0
8
0
CINEMATEXT
18
0
0
11
1
13
17
11
(*) Average workforce. The total does not coincide with the total group workforce due to several companies in 2007 not being covered by the services of the Joint Prevention Service.
Key: Labour accidents with lost time (LALT). “In itinere” labour accidents (LAIT). Common Illness (CI). Non-Labour accident (NLA). Maternity (MAT). Professional disease (PD)
Below we have included three statistical ratios that according to the National Institute of Labour Health and Safety (INSHT for the Spanish initials)
identifies the relative accident rate of a company.
LALT Frequency Ratio = total LALT * 1000000 / total hours worked = 14 * 1000000 /1704 * 1195 = 6,88
LALT Incidents Ratio = total LALT * 1000 /average workforce = 14 * 1000 / 1195 = 11.72
LALT Seriousness Ratio = Number of days lost * 1000 / number of hours worked = 278 * 1000 /1704 * 1195 = 0.14
Health monitoring. Annual programme, health protocols adapted to each activity, emergency aid and first aid. During 2007, 225 medical exams
were given and 327 analyses were performed.
Industrial Hygiene
Ergonomics and applied psychosociology
The environment. Periodic control system for environmental factors integrated into risk evaluations.
79
Transparency
the mergers and acquisitions in the communications media
industry over the last 10 years have earned the scepticism of
the population. This sheer size of the multimedia conglomerates to which many television stations belong around the world
has led to increasing mistrust.
One of the primary fears arising from this concentration of ownership of communications media in just a few hands has to
do with the capacity to these conglomerates have for incorporating a plurality of visions of reality, in other words, their independence. The fear derives from their power to transmit the
same message across numerous communications channels.
One of the primary demands in this context is transparency regarding
the characteristics and size of the business and the ownership thereof.
In response, Telecinco has sharply increased its efforts in recent years
to generate complete and quality information for stakeholders.
This can be clearly seen from the position of Telecinco on the
leading rankings for sustainability and corporate governance.
The 2007 edition of the “Corporate Social Responsibility Reports
of IBEX-35 Companies” study prepared by the Corporate Social
Responsibility Observatory2 ranked Telecinco in the top slot in
the corporate governance category. The 2004 and 2006 editions of this study ranked Telecinco as the most dynamic company listed in the IBEX-35 in annual improvements in the quality
of its report, advancing a total of 15 positions on the ranking.
(2)
The Observatorio de la Responsabilidad Social Corporativa, is an umbrella association
comprised of 14 organisations representing civil society, including NGOs, trade unions and
consumer associations. This network promotes the participation incorporation among the
social organisations that, in their different areas, work on Corporate Social Responsibility.
2006
TELECINCO
1,06
2005
0,82
SOGECABLE
0,68
0,64
PRISA
0,53
0,39
ANTENA 3TV
0,38
0,35
Media sector
0,66
0,55
IBEX -35 MEDIA
1,14
1,09
Source: Corporate Social Responsibility Observatory 2007
Community support: “12 meses, 12 causas”
Throughout 2007, Telecinco has maintained its social action
structure through the “12 months, 12 causes” campaign
and for the eighth consecutive year has taken advantage of
the potential of being the leading television station in Spain
to increase the awareness of viewers, always with a positive
focus, of the various problems that currently concern today’s
society. Thanks to the strong efforts over these years, the “12
meses, 12 causas” brand has become a key point of reference for social actions by communications media in Spain.
Within the concept of social advertising, the channel has
broadcast in institutional spots during different advertising
time slots to support and explain each of the causes. The
messages are also broadcast during news and other programming and occasionally during fiction series and special reports, such as those broadcast in September during the main
news programming for the campaign “In support of those
living with Alzheimer patients”.
While in 2006, the campaigns centred on defending childhood; in 2007 the focus was on supporting teens, with eight
of the 12 annual causes being particularly targeted towards
this collective: a group of specific problems faced by teens
as they grow up in their high capacity for reaction in implication in social questions. Innovative campaigns such as “Promotion of reading of the press” and “Promotion of classical
music”, together with traditional messages such as “For a
drug-free youth”, “For responsible driving”, “The promotion of reading”, “For a complex free youth” and others,
such as “Promotion of sports” and “For a healthy diet”,
were the subjects selected for their higher impact on teens
and young adults.
80
As has become the norm in recent years, leading institutions,
companies and personalities have joined this year’s “12 meses,
12 causas” campaigns to help reinforce the messages with
their express support. This included, once again, the Instituto
de la Mujer, with the women’s rights Institute again collaborating with Telecinco in the causes “For equal job opportunity”.
Publisher Editorial Santillana again participated in the causes
“The promotion of reading”, and thanks to their collaboration
and the direct involvement of Mercedes Milá, the station was
able to distribute almost 2000 books all over Spain at no charge. Antonio Lobato, the face in Spain of Formula One racing,
lent his image to the August campaign “For responsible driving”. Likewise, young orchestra director Inma Shara lent her
image to the campaign “Promotion of classical music”.
The website www.12meses12causas.telecinco.es contains all
of the information on the different causes and campaigns and
the awards granted.
In 2007, Telecinco dedicated 8,825,661 euros to the “12 meses, 12 causas” campaign, which represents a total of 3,230
adult GRP (the Gross Rating Point is a unit of measurement
used in the communications and media sector to price advertising space. It equals the result of dividing the number
of viewers that have seen a spa by the total potential market
previously calculated for the spot).
“12 MESES, 12 CAUSAS” 2007
January
Promotion of reading of the press
February
For a complex free youth
March
For a drug-free youth
April
The promotion of reading
May
For equal job opportunity
June
In the support of refugees
July
For a healthy diet
August
For responsible driving
September
In support of those living with Alzheimer patients
The awareness strategy of “12 meses, 12 causas” was improved in 2007 by taking advantage of the resources made
available by the new technologies and Internet, key tools in
advancing at a stronger pace and converting the passive spectator into an active subject. In February, Arturo Valls starred
in “El Piropeitor” (loosely translated as “The Flatterizer”), a
series of comedy shorts that could be downloaded and sent
by e-mail or mobile phone with flattering remarks designed
to increase the self-esteem of the recipients in support of the
cause “For a complex free youth”. Throughout the month,
the initiative registered more than 2 million page visits, with 8
million videos being downloaded by users.
October
Promotion of sports
November
Against gender violence
December
Promotion of classical music
Another Web initiative, the project “unesuvoz.com” (loosely
translated as lend your voice.com), Telecinco achieved 230,000
people to use the downloadable rap song by a group of Somali refugees for their ring tone in support of the cause “In
the support of refugees”, with the collaboration of ACNUR
and the participation of Jesús Vázquez, who is able to help
raise the funds needed to create a radio broadcaster in the
refugee camp in Dadaab (Kenya).
Brazilian musician Carlinhos Brown received the award for
Best Career in Solidarity for his strong commitment to the
development programmes for the disadvantaged neighbourhoods of Salvador de Bahía (Brazil). Fundación Telefónica received the award for Best Business Trajectory in
Solidarity, while the McCann Ericsson spot for Acciona on
sustainability received the award for Best Social Awareness
Advert. The José Couso award went to the camera team of
Again in 2007, “12 meses, 12 causas” dedicated space to the
fight “Against gender violence”, as it has done each year since the launch of the campaigns. New this year, the cause was
covered with two different institutional spots and a below the
line advertising initiative for the distribution of free postcards
that achieved an acceptance rate of 91%
TELECINCO “12 MESES, 12 CAUSAS” AWARDS
In December of 2007, Telecinco held the “12 meses, 12
causas” awards ceremony, recognising people, organisations and other entities for their outstanding efforts helping
others. The ceremony took place at the new facilities of the
Prado Museum and was attended by leading personalities
from Spanish society.
the Telemadrid program “Mi cámara y yo” (“Me and my camera”), author of the report “No estamos solos” (“We are
not alone”), which looks at the lives of the close to one half
million older people that live all alone in Madrid. The piece
“Las alas de la vida” (“The wings of life”) won the award
for Best Audiovisual Production for its in-depth look at the
last stage of human life. Special Mention of the jury went to
filmmaker Antonio Mercero for his career, and highlighting
his film on Alzheimer’s disease “¿Y tú quien eres?” (“Who
are you again?).
SPECIAL ACTIONS
In support of World Breast Cancer Day on 19 October, Telecinco took advantage of the strengths of its life programming to
launch various messages to increase the awareness of women
on the need to perform annual checkups for the early detection of this disease.
The messages were presented throughout the day by the
some of the most popular and well-known hosts on the station: Ana Rosa Quintana, Mercedes Milá, Emma García, Carmen Alcayde and Ángeles Blanco. As part of the campaign,
Telecinco created the website www.telecincoporlavida.com,
which was accessible from any banner on the Telecinco website highlighting the anniversary. The website allows users
to send postcards that encouraged recipients to have annual
checkups and launched support messages for women suffering from the disease.
In addition, Telecinco has dedicated huge efforts in recent
years to the fight against tobacco addiction. There were various actions in 2007 that had very good results, primarily
through the reality show “Gran Hermano”, one of the most
viewed shows up on Spanish television. Mercedes Milá took
advantage of the large public to promote this cause in collaboration with the Spanish Cancer Association (AECC).
In addition, Telecinco also maintained an active campaign for
the donation of blood in collaboration with the Spanish Red
Cross, and provided information on the “12 meses, 12 causas” website. The subject was also included within the popular fiction series “Hospital Central”, with the stars of the show
demonstrating their sore port for this initiative.
81
Management of environmental impact
As a leading communications media company, our mission is
to inform and entertain our viewers, favouring, among other
things, attitudes that are committed to the protection, respect
and conservation of the environment
ENVIRONMENTAL POLICY
As part of its commitment to environmental protection, Telecinco began to apply environmental policy in 2007 with the
following core principles:
Reduction of the consumption of energy and raw material per unit produced by means of applying more efficient processes that lower the CO2 emissions are derived
from energy consumption and assure proper waste management.
Reparation of content that favours greater and better
environmental awareness among television viewers, with
special emphasis on the fight against climate change.
Development of training and information actions for the
workforce and suppliers to allow them to perform their
jobs in a manner that is respectful of the environment.
To implement this policy, Telecinco will create an Environmental Management System (SGMA for its Spanish initials) that
allows for the integration of environmental concern into the
general management of the company, thereby contributing
to the reduction of the environmental impact of our activities.
The SGMA will systemise the actions carried out to date for
the environment, facilitating our objectives and establishing a
work methodology.
Involvement of our personnel is essential for the proper
functioning of the system and this is the aspect upon which
the company is going to focus throughout 2008.
Loyal to the commitments assumed under the United Nations
Global Compact in 2006, the company continued to work
this year on the development and diffusion of environmentally friendly technologies (Principle 9), establishing the primary
objective of promoting initiatives in favour of greater envi-
82
ronmental responsibility among the public and our workforce
(Principal 8) for 2008.
INDIRECT ENVIRONMENTAL IMPACT:
CAPACITY TO INVOLVE SOCIETY IN RESPECT
FOR THE ENVIRONMENT
Telecinco is aware that its mission of informing and educating
viewers, encouraging them to question their own behaviours
and promoting the changes needed to adapt their daily habits
to favour sustainable development.
Our position gives us the ability to influence society with our
programming, approaching subjects such as recycling, saving
energy, the use of public transportation, etc., and we take full
advantage of it. This year we have continued to offer coverage for those notable aspects of environmental news such
as climate change and efficient resource consumption, take
advantage of our programming to include criteria of good environmental practices.
The greater efforts of the company will begin to bear fruit in
2008 with the launch of the new digital television channel
Telecinco 2, which will have a strong focus on content that
increases social awareness and respect for the environment
through collaboration agreements with the most prestigious
and far-reaching NGOs in the world. The first collaboration
will be with Greenpeace, , which will provide the new channel with news programs and a careful selection of documentaries and special reports that are in line with the spirit of
solidarity of Telecinco.
The weekly program will include news, a report and a documentary, all produced by Greenpeace Spain, which, together
with Telecinco, has decided to use the potential offered by
the channel to increase the awareness of the public on various social subjects and environmental problems. The news
section will provide the latest environmental news. The first
programme in mid February will include a report on climate
change, the impact that it is producing and the solutions that
they propose.
Each programme will also be available after the broadcast on
the corporate website.
The “12 meses, 12 causas” initiative in 2700 and that cover
the environment and the channel will return to the subject in
coming years, specifically dedicating April 2008 to sustainable
development.
In addition to the planned 2008 initiative, the environmental
subjects covered in prior years are as follows:
March 2000
“For energy savings and recycling”
April 2000
“For the conservation of our natural environment”
February 2001
“For respect for the environment”
July 2002
“For the environment”
January 2003
“For the conservation of our coasts”
July 2003
“For the prevention of fighters”
November 2004
“Promotion of recycling”
July 2005
“For the rational use of water”
April 2008
“For the promotion of sustainable development”
POLICY OF FIGHTING AGAINST CLIMATE CHANGE
Throughout 2008, Telecinco will launch a policy of fighting
against climate change that will focus on two main aspects:
Reduction of greenhouse gases by the company.
Generation of an attitude of respect and commitment
among viewers.
We will hold an environmental awareness and responsible
consumption programme among Telecinco employees in order to favour behaviours that are committed to reducing electric energy consumption, the use of the company bus, etc. in
order to contribute to reducing the CO2 emissions into the
atmosphere.
DIRECT ENVIRONMENTAL IMPACT:
OUR ENVIRONMENTAL STRATEGY
The Joint Prevention Service and the Deputy Directorate of
Operating Continuity share the environmental control and
management of the activities of the company.
Both departments are responsible for rolling out the plans and
programmes for reducing consumption and managing the
waste generated through the company’s activities.
A - Water energy and materials consumption:
TOTALS
2006
2007
Water (m3)
54,589
48,841
17,512,170
15,864,577
28,000
28,331
Electricity (kwh)
Diesel (litres)
Propane (kg)
15,008
13,970
Paper (kg)
35,514
39,752
83
The completion of the new buildings in Fuencarral and certain
repairs on the supply network in older facilities have led to a
10% decrease in water consumption during the period.
As from the second half of 2006, Telecinco launched a series
of energy-saving measures, the positive effects of which were
already noticeable in the last quarter of 2006 and continued
to provide positive effects of this year.
Scope: Entire Group except the headquarters of Publimedia in Madrid, and the
The measures adopted consist of optimising the functioning of the automated lighting and heating and air-conditioning system for the stages, as well as rationally planning
of production hours following a study on temperatures in
order to allow for a more efficient use of energy and the
subsequent savings.
delegations of Publiespaña.
CONSUMPTION PER EMPLOYEE
2006
Water (m3)
46.1
40.9
14,790.7
13,275.8
Electricity (kwh)
2007
Diesel (litres)
23.7
23.7
Propane (kg)
12.7
11.7
Paper (kg)
30,0
33,3
Scope: Entire Group except the headquarters of Publimedia in Madrid, and the
CONSUMPTION PER HOUR
OF PRODUCTION (*)
Total hours of production in studios and sets (h)
Water (m3)
Electricity (kwh)
2006
2007
149,335
141,269
0.4
0.3
117.3
112.3
Diesel (litres)
0.2
0.2
Propane (kg)
0.1
0.1
Paper (kg)
0.2
0.3
Scope: Entire Group accept the headquarters of Publimedia in Madrid, and the
In addition, in 2007 the company arranged for the study of
two companies in order to analyse the energy savings that
would be provided by a change in studio lighting, switching
from halogen lighting to cold lighting. The savings measure
was complement the percentage reduction in energy consumption and established by the company.
Regarding the use of fuel, one of the older buildings (building B) in Fuencarral has replaced its diesel boiler for one
ride on natural gas ; which will have a favourable impact
on our fuel consumption starting next year. The emptying
of the boiler and subsequent work were performed using
a waste manager, assuring the proper air tightness of the
operation.
(*) We have included the figure for studios and film sets because we believe it is
the key to understanding the resource and managing needs of our core activities,
the production and broadcasting of television content.
There were significant improvements in the production processes of the station in 2007 that have positively affected the
associated environmental impact.
These improvements included:
(3)
Last year’s report mentioned that the new facilities would use natural gas.
However, the adaptation process has been slower than expected, beginning this
year with one of the older buildings (building B).
Pilot implementation in November of the first digital
production of the programme environment. This new
way of working eliminates the need for tapes, which
are replaced by digital files, as well as a reduction in
the number of editing and equipment rooms needed
(video, etc.)
84
Substitution of sending tapes of in-house productions for
sending computer files, resulting in an annual savings of
approximately 1850 tapes. This initiative was launched in
November.
Substitution of sending content for subtitling bites May
with the sending of computer files. Saving approximately
1200 tapes annually as well as the associated transportation. This initiative was launched in April.
Substitution of the forms and faxes for temporary personnel requests with the consequential savings in paper
consumption.
Electronic approval of invoices within the Technologies
Division, avoiding the photocopying, shipment and returned by internal mail.
The last two improvements, begun in 2007, will be reflected in
the consumption figures included in next year’s report, when
the measures will be extended to other areas and departments
of the company
B - Waste management.
Telecinco has continued with the improvement process this
year, working on its plans for reducing, recycling and evaluating wastes.
All of the company’s facilities handle wastes using an authorised waste manager.
WASTED MANAGED (Kg.) (*)
2006
2007
Paper/cardboard (kg)*
76,795
77,380
37,920
Tape (kg)*
35,255
Batteries (kg)*
1,300
1,500
Electrical and electronic apparatus 15,403
17,670
paper recycled is derived from the printed material entering
into the channel (magazines, newspapers, advertising), which
is not recycled until the end of its useful life.
This year Telecinco completed the digital conversion of its library of past programme and shows begun in 2005. Older
films and those no longer used were sent for recycling using
an authorised manager, while most were stored for internal
reuse. In 2007 the company reused a total of 26,250 units.
The company is planning for next year to increase the awareness and commitment of suppliers (in this case of assemblers)
to separate in orange in the woods from the metal in order
to proceed with the collection by the manager and therefore
facilitate an increase in number of ways to treat.
This year we have also installed containers at various points
for the recycling of toner. The figures will be provided in next
year’s report.
C - Atmospheric emissions.
Fully aware of the responsibility of all of society for climate
change, Telecinco has continued this year to implement measures to improve the company’s contribution to reducing CO2
emissions to the atmosphere.
The main activities in this area are focused on saving energy,
a key aspect for the company, by means of those measures
commented in the previous section (optimisation of the automated functioning regulating lighting and climate control
on the stages).
Paint remains
194
406
Aerosols 25
20
(4)
Tins and plastic containers 36
14
Sustainable Development (WBCSD) and the World Resources Institute (WRI) that
The GHG Protocol is an international initiative of the World Business Council for
Scope: All production centres and offices in Madrid.
provides an accounting tool for government and businesses of all sizes to unders-
(*) Wastes derived from the core activities of Telecinco, the exploitation of advertising
tand, quantify, and manage greenhouse gas emissions and indentify opportunities
space, and in the distribution of products and services through multimedia systems.
for reducing emissions and operate using clean technologies. For more information
on this subject see the appropriate annex of the report or visit the website www.
The difference between the figures for paper consumed and
ghgprotocol.org
This year we have also completed the works for reorganising
the entrances and exits from the Fuencarral facilities, which has
contributed to improving traffic in the area and avoiding traffic
jams at peak hours at the beginning and end of the day.
This year, like last year, the CO2 emissions were calculated
using the methodology specified by the Greenhouse Gas Protocol4. Emissions from its primary activity, electrical consumption, showed a decrease over the previous year, indicating that
the measures adopted by the company are so far successful.
ATMOSPHERIC EMISSIONS (MT)
CO2 of energy consumed by fuel 1
2006
119.6
117.43
2,215.7
- National
824.8
1.243.8
- International
540.9
971.9
1,203.54
1,125.47
CO2 derived from land transport:
- Vehicles owned by Telecinco 2
205.2
205.2
- Mass transportation (coach)3
23.17
23.17
- Vehicles not owned by Telecinco
821.47
828.7
- Transportation by rail
153.7
68.4
4,220.4
3,791.6
SO2 derived from electricity consumption 4
1.1
10.9
NOx derived from electricity consumption 4
12.3
9.2
Particles derived from electricity consumption 4
14.0
0.8
CO2 of electricity consumed 4
For this reason the Group is working on the launch of an environmental awareness and responsible consumption programme
for our workforce. The initiative should be launched next year, informing all of our employees on the rules for environmental behaviour within the company and good environmental practices
(energy savings, the use of long-duration light bulbs, turning off
appliances when not in use, rather than leaving on standby, etc.)
for their daily life, so that all of the workers can extend this environmental awareness to other areas beyond their workplace.
As regards suppliers, as we have commented, the company
continuously works to improve the results in recycling of waste, promoting the separation of material for some that when
treatment by the authorised manager.
2007
1,365.7
CO2 derived from air travel:
85
TOTAL EXPENSES AND INVESTMENTS
IN ENVIRONMENTAL MATTERS
During 2007, the total cost and investments made in environmental matters on the Group level was 51,257 euros.
Scope: Entire Group accept the headquarters of Publimedia in Madrid, and the delegations of Publiespaña
1 This year we have modified the conversion factor for CO2 from the consumption
of propane and have updated the 2006 figure 2 conform to the new calculation for
comparison purposes. This has resulted in the figures provided differing from that
contained in last year’s report.
2 The number of rental vehicles did not increase in 2007; the mileage figure provided
is the number of kilometres contracted per year for each rental vehicle.
3 The emissions derived from mass transportation are unchanged from last year
given that there were no changes in the route or number of stops made by the
company coach.
4 Estimates based on utility company data (2007 update)
ENVIRONMENTAL AWARENESS
The key to the success of our current initiatives for reducing
consumption and waste and for compliance with the longterm environmental objectives established life specifically with
the workforce of Telecinco and its suppliers.
86
Aspect specific to the television sector
professionals and collaborate in the appropriate alphabetisation of children.
Responsible broadcasting of content
Responsible broadcasting of content refers to the transversal integration of criteria that allow for models that are more
inclusive and responsible, and more faithfully reflect reality.
Both Telecinco and Publiespaña have the firm commitment
of offering news, entertainment and advertising content that
follows criteria of honesty, correctness, independence and responsibility.
Promote parental control and efficient technical measures
that allow for parents to be appropriately informed on television content and exercise their responsibility over the
children (access codes, program blocking, EPG’s).
The commitment of Telecinco takes the form of the following
aspects:
Promote the responsible use of television and other audiovisual media by means of awareness campaigns.
a) Protection of children and teens
The protection of the rights of children and teens is one of the
core subjects in the debate on the responsible broadcasting of
television content. The primary instrument for the protection
of childhood used by Telecinco is the Code for the Development of Self-Regulation of Television Content and Children5,
the primary objectives of which are:
In March 2007, Telecinco released the second report on the
evaluation of the application of the Code, with very positive
results in terms of the reduction in complaints and the resolution of them since the previous reports. Of the 359 complaints
filed between 2006 and 2007, 9.7% referred to programmes
broadcast by Telecinco and only four of them were accepted.
Improve the efficiency of the protection of minors as television viewers during the timeslots subject to legal protection.
Avoid indecent or insulting language.
Do not incite children to imitate unhealthy or dangerous
behaviours.
Widely and regularly disseminate the content of the Code
over the television during times with large audiences.
EXCEPTED COMPLAINTS ON THE PROGRAMMING OF TELECINCO
BETWEEN 2006 AND 2007
Date
Programme
Reason
28/09/2006
Programming advertisement
Classification of 18 y/o and above
19/10/2006
Programming advertisement
Violence
30/01/2007
A tu lado
Conflictive subject
06/03/2007
A tu lado
Conflictive subject
Source: 2nd Report on the evaluation of the application of the Code for the Development of Self-Regulation of Television Content and Children 2007
Avoid the unjustified broadcast of inappropriate scenes
or messages for young viewers during the day parts normally viewed by children.
Guarantee the privacy, dignity and safety of children when
appearing or being mentioned in television content.
(5)
On 9 December 2004 Telecinco subscribed to the Code for the Development of
Self-Regulation of Television Content and Children together with Televisión Española S.A., Antena 3 de Televisión S.A., and Sogeclable, S.A., and at the same time
Accordingly, Telecinco and the other television stations
agreed to:
signed an agreement with the government to promote the code.
After the three-month period established for the progressive adoption by operators, the capsule is took effect on 9 March 2005. Currently the Code has also been
Promote the protection and the development of the
rights of children by communications media and media
adopted by La Sexta, Veo TV, Net TV, and the regional television stations through
FORTA.
BREAKDOWN OF COMPLAINTS FILED 2005-2007
Change
2006-2007
2005-2006
Telecinco -40,4_
12,80%
53,20%
Antena 3
+23,5_
58,20%
34,70%
Cuatro +12,5_
19,80%
7,30%
La Sexta +5,0_
5,00%
0,00%
TVE-1
-6,0_
4,20%
4,80%
100,00%
100,00%
Source: www.tvinfancia.es
Note: La Sexta and Cuatro began broadcasting in November 2005 and March 2006
respectively.
During 2007 the regulation Committee began introducing
new rules in criteria into the Code in response to new needs.
Some of these new rules are:
Elimination of the beeps over indecent language.
87
Reflecting diversity in the preparation of content is seen by
Telecinco as an opportunity for including the greatest number
possible of public with content that must be able to demonstrate the wide variety of social, cultural, gender, age, religion,
political and sexual orientation existing in Spanish society.
b.1 Treatment of the female image
There has been a notable advance in the equality of treatment
afforded men and women in the communications media in recent years. Telecinco is the channels that as more female voices,
as both hosts and journalists, as well as in interviews and other
appearances as can be seen from the “2nd research report on
the gender representation in radio and television news”6.
DISTRIBUTION BY GENDER OF REGULARLY APPEARING PROFESSIONALS
All
tve1 La2 Tele5 Antena3
Women 43% 49%
100 %
45% 21%
Men 57 %
51%
0 %
55% 79%
Women 47% 72%
60%
49% 32%
Men 53% 28%
40%
51%
68%
Women 30%
45%
0%
39% 6%
Men 70%
55%
100%
61%
94%
Hosts
Advertisement for programmes not recommended for
children under 13 years of age broadcast during times
of a reinforced protection shall not include any images or
audio that resulted in the said classification.
Programmes broadcast during a reinforced protection
times shall not include images or audio from other programs that resulted in it being classified as for adults.
Anchors
Journalists
Source: 2nd research report on the gender representation in radio and television
During reinforced protection times the subject of pornography shall be avoided unless handled for news purposes.
Additionally, in order to improve the effectiveness of the measures adopted, Telecinco in 2007 began to issue messages at
different times forming viewers that they should be aware of
the classification by agents of the programming. For more information visit: www.tvinfancia.es
b) Reflecting diversity
Given the central nature of television as an entertainment
choice for a wide segment of the population, the tendency to
represent and support the perpetuation of some dominant stereotypes is seen by the stakeholders – particularly in commercial
television - as a source of concern.
news 2005
DISTRIBUTION OF GENDER FOR TELECINCO JOURNALISTS
2006
2007
Women 64
58%
72
Men 47
42%
54
43%
Total 111
100%
126
100%
(6)
57%
Study carried out in 2005 by the Official Institute of Radio in Television (IORTV) in
collaboration with the Instituto de la Mujer.
88
Beyond the mere quantitative distribution of the appearances
of women on television, and perhaps more important to look
at the roles they play when they appear. In this regard, there is
still a lack of balance on television. According to the study published in 2007 by Instituto de la Mujer, “Treatment and representation of Women in television series broadcast by national
television stations”, there is still a wide gap. Of the nine series
used for the analysis, five belonged to Telecinco, given their
high popularity. The study reflects that the representation of
women in the television series with the largest audience broadcast by national television stations in Spain continued to incorporate elements based on stereotyped concept of gender roles.
As regards the egalitarian elements, in the opinion of viewers,
three of the five series broadcast by Telecinco achieved the highest ranking of them all.
TV SERIES WITH THE MOST DISCRIMINATORY
OR EGALITARIAN ELEMENTS
Prison Break 0.7 Ana y los Siete 0.4 0.0
0.0
DK (Don´t Know)
31.8 24.1
NA (No answer)
0.4 0.4
Source: Treatment and representation of Women in television series broadcast by
national television stations, Instituto de la Mujer MTAS 2007
c) Gender violence
One of the main themes associated with women that require
particularly strict treatment is gender violence. They need to
appropriately treat news stories on this subject has led in recent years to initiatives such as the “Emergency manual for
the treatment of gender violence”, issued in the 2002 National Forum of Women, Violence and Communications Media, which has been adopted by Telecinco and other stations.
Among other things, the manual includes the recommendation of “expanding the field of representation of women” and
the 10 Commandments for reporters.
Discriminatory None
27.6 27.5
Yo soy Bea 10.7 16.5
EMERGENCY MANUAL FOR THE TREATMENT
OF GENDER VIOLENCE
Ana y los Siete 9.2 7.8
1. Avoid the models of women that impair their dignity.
Los Serrano 6.3 7.1
2. Abuse against women is a violation of human rights.
Aquí no hay quien viva 5.5 6.3
3. Do not abuse morbid curiosity with social interest.
House 3.7 5.1
4. Violence against women is not a news event or conventional news.
All
1.5 2.7
5. Not all information sources are reliable.
El Comisario 1.5 1.6
6. Give useful information, prior advice.
Prison Break 1.8 0.0
7. Identified the aggressor, respect the dignity of the victim.
CSI Miami 1.5 0.4
8. Image is not everything, do not fall into yellow journalism.
Hospital Central 0.7 0.8
9. Figures can reflect different realities: investigate and explain.
DK (Don´t Know)
30.1 23.9
10. Stereotypes and clichés are frivolous and banal.
NA (No answer)
0.0 0.4
Egalitarian
None
15.3 17.8
Hospital Central 9.5 15.8
CSI Miami 9.9 8.7
All
8.0 9.9
Los Serrano 9.9 8.3
Aquí no hay quien viva 5.8 4.0
House 5.1 3.6
El Comisario 2.9 5.1
Yo soy Bea 0.4 2.4
With the adoption of this Manual, Telecinco approaches the
problem of gender violence in active manner, dedicating one
of its “12 meses, 12 causas” campaigns, during the month of
November 2007.
d) Disabilities
The relationship between television and the handicapped is
based on the image shown of this collective, given that the
media can have a negative impact by showing certain images
or, conversely, can be a key tool to increasing awareness and
shaping public opinion.
During the First Encounter on Journalism and the People with
disabilities held in 2004 with the sponsorship of the Secretariat of State for Social Services, Family and the Disabled of
the Ministry of Social Affairs, more than 60 representatives
of the national media, including Telecinco, signed the Salamanca Declaration expressing “the will to contribute from our
respective communications media to fight against stereotypes
that prevent people with disabilities from participating and integrating in our society as citizens in equal conditions”. The
Declaration contains 8 measures to improve the treatment of
disabilities.
Declaration of Salamanca
1. Leave behind the charitable or victimised approach traditionally given by communications media to concentrate on
overcoming the true problems that affect people with disabilities as full citizens architectural bearers, access to employment and housing, healthcare, promotion of an accessible
environment, etc.).
2. Give people with disabilities in the voice as independent
citizens in charge of their own lives. Ending their “invisibility”
is the first step that we must take so that they may occupy the
space that they have the right to. “Nothing about us, without
us” is a slogan that we must keep in mind prior to offering any
information to the public.
3. Avoid discriminatory or stigmatising language that places
an emphasis on the disability rather than on the condition of
the person. Take special care when selecting the words used
to define people with disabilities given that language is the
tool that conditions the opinion of reality. Adjectives such as
invalid, handicapped and disabled should be avoided to overcome the concept of being “sick” or a “patient”.
4. Offer an active image of people with disabilities. The traditional idea of such people as a mere receiver of a does not
completely reflect the reality of a world in which passivity and
the character of assistance are not the norm. This erroneous
image contributes to promoting their exclusion.
5. Include people with disabilities as part of the general population in all types of information and not only in those which
have disabilities as their main theme.
6. Show people with disabilities as citizens with full rights
and underline their capacities in order to promote a normalised view.
89
7. Approach news from a contextual focus. Explain the contextual circumstances that help the public to understand
and become closer to the world of disabilities with greater
knowledge.
8. Cover the subject of disabilities in a proportional manner,
without commiseration or presenting the person with disabilities as a hero.
Broadcasters also have the responsibility to people with disabilities of providing access to their content. The greatest barriers
represented by television are faced by those with sensory disabilities, despite the significant progress in recent years thanks
to the new technologies.
Since our station’s very beginning in 1998, we have broadcast
content for the hearing impaired (specifically the series El Súper). Telecinco is a high in the year among private television
stations in closed captioning. The project started with a preliminary study on the technical and personal needs by consulting with associations representing the hearing impaired. With
their collaboration, we were able to select the technical and
human team that would handle the closed captioning in just
three months. We also produced a style book that unified the
criteria for subtitling. In the first phase we also sent a questionnaire to hearing impaired viewers in order to incorporate
their opinions.
However, in order to guarantee the quality of the project as it
continued to grow, Telecinco decided to outsource the subtitling, which is today handled by Cinematetxt, in which Telecinco holds an equity stake.
In 2007, Telecinco broadcast a total of 1,940 minutes of subtitles per week. Subtitling is offered every day during different
dayparts (prime time, mid day and night) and for all types of
broadcasts (series, prime time films, shows, weekend cinema
and news). We would highlight that Telecinco is the only station that provides closed captioning of live broadcasts (news,
debates, etc.) and in 2007 produced a significant increase in
the number of subtitle hours for the DTT channels.
In addition, Telecinco is committed to the development of favourable legislation for subtitling, and back in 2004 supported
90
the protocol for the creation of the Spanish Subtitling Centre
(Centro Español del Subtitulado), together with the Ministry
of Labour and Social Affairs, and the associations representing
the hearing impaired, the Spanish Committee of Representatives of People with Disabilities and the rest of the Spanish
communications media companies. With the backing of this
institution, Telecinco promoted the preparation of general rules on the technical characteristics of subtitles and advisory
services for professionals in the field as well as the creation of
a database service that would be available to the entire industry in order to allow for exchanging subtitled materials.
In 2007, Cinematext participate in the establishment of the
standard AENOR UNE 153010 four closed captioning for the
hearing impaired using teletext, and held meetings with the
Special Centre for Audiovisual Integration and Training (CEIAF)
for a collaboration project in the preparation of a single registry of subtitled files.
e) Appropriate news treatment of immigration
As the Spanish social reality continued to change, Telecinco advanced in its news treatment of immigration, incorporating new
subjects of interest and improving the manner in which they are
approached, incorporating a greater plurality of opinions.
In 2007, the company decided to take a further step, working on integrating the “Recommendations of the Audiovisual
Council of Catalonia on the news treatment of immigration”
into its daily practice. These recommendations have been
highlighted by the Ministry of Labour and Social Affairs in their
“Practical guide for communications media professionals: media treatment of immigration” released in the beginning of
2008 and are applied by Telecinco in its news treatment of
the subject.
Recommendations for media companies
1. Whether you are public or private human should collaborate in the public task of integrating immigrants, disseminating
information on immigration and its context and contributing
to a climate of social dialogue.
2. Avoid recourse to partial or unconfirmed sources. Promote
self-regulation in the matter of immigration and create quality
control bodies to govern the information.
3. Promote the adoption of specific codes of conduct for treating immigration.
4. Support the training, specialisation and updating of the
professionals that cover this subject.
5. Invest in resources to diversify information source, and
offers sufficient time to the professionals to appropriately prepared this information.
6. Avoid disproportionate coverage and artificial spectacles
that favour clichés and oversimplifications.
7. Do without anecdotal, routine superfluous elements and
promote expert opinion.
8. Incorporate immigrants into the workforce, always maintaining appropriateness, merit and opportunity.
Recommendations for media professionals
1. Use immigrants as an information source. The principle
of confirmation, relativism and diversification of sources also
applies to official ones.
2. The privacy and intimacy of individuals is a universal right.
Avoid close-ups of wounds or deceased. Exotic treatment is
not acceptable.
3. Avoid prejudicial language: illegal immigrant, undocumented or without papers.
4. Avoid clichéd quotes that imply a valuation. Particularly, do
not relate the religious option with fundamentalism.
5. Take special care with headlines and news blurbs.
6. Avoid associating a collective with an illegal activity, without
renouncing the collective denominations.
7. Favour a more expansive, complex and plural view of nonOccidental society to avoid ethnocentrism.
8. Reduce the broadcast of file photos to illustrate news that
they do not correspond to.
9. Avoid the anonymity of immigrants appearing in the news
unless they expressly request it.
10. Textual quotes of a racist nature must be marked and attributed, providing the context.
11. Avoid paternalism.
General recommendations
1. Avoid associating immigration and violins, conflicts, exclusion, disobedience or delinquency.
2. Avoid the utilitarian treatment of immigration due to low
Nativity or to cover job positions.
3. The CAC (Audiovisual Council of Catalonia) proposes meeting periodically with immigrant groups, the authorities, the
media and media professionals to jointly evaluate the dominant news coverage
f) Responsible broadcasting of advertising
Given its influence on the configuration of television content
and the capacity to highlight certain controversial products, advertising is one of the elements that is subject to the greatest
surveillance and regulation on television. To reinforce supervision, Publiespaña is a member of Autocontrol (www.autocontrol.es), the Association for the Self-regulation of Commercial
Communications, said overseas that the broadcasting of advertising is in benefit to the advertisers, consumers and society in
general. This association is in charge of handling the complaints
filed, establish codes of conduct and provide legal and ethical
advisory on campaigns prior to broadcast.
In addition, in 2005, Telecinco signed the Agreement on the
Procedures for the Commercialisation and Management of Advertising Spaces on National General Television Stations with
the Spanish Association of Advertisers (AEA) as the primary
framework governing the relations between Telecinco and this
collective.
Broadcasting of responsible content
a) Promotion of education and culture
Currently, the legal obligation to finance film productions representing at high risk for media companies given the low return of these investments. In light of the situation, Telecinco
has adopted a strategy through which, using various alliances, it promotes the generation of the industry and provides
its cinema products with a strong international personality,
which has provided a very high level of profitability.
91
In order to guarantee the appropriate use of language and
the correctness of the news, Telecinco signed a collaboration
agreement with the Fundación del Español Urgente (Fundéu)
in 2005, making it the first private television channel to adopt
this measure. In 2007, Telecinco actively participated in the
encounters organised by Fundéu on the use of the Spanish
language, such as “The Spanish language in Television News
on both sides of the Atlantic”.
The channel also contributed to the promotion of culture
through its “12 meses, 12 causas” campaigns (“ Promotion
of the reading of the press”, “Promotion of classical music”
and “The promotion of reading”), all subjects that are related to youth, the main theme of the campaigns in 2007.
b) Awareness of the challenges of sustainability
Again the main tool used by Telecinco was the “12 meses, 12
causas” initiative, for which the station increases the awareness of viewers on various problems that concern society. For
more information see the section on Community Support:
“12 meses, 12 causas”.
Regarding the environment, the company also uses this initiative and in 2008 will reinforce its environmental awareness
actions through the new digital channel Telecinco 2, which
will dedicate a space to social awareness and respect for the
environment. For more information see the section on the Management of environmental impact.
The involvement of the company in Spanish cinema projects
as translated into the specific weight that Telecinco has obtained in the cinema industry, , earning high recognition by
critics and audiences for the films produced in 2007, with
the success of the “The Orphanage” as the absolute leader.
2007 was also the year in which Telecinco’s film company
changed its name to Telecinco Cinema to associate the Telecinco brand with its successful efforts in culture and cinema.
92
Telecinco and data protection
With the interactive television model that we are moving
towards, the flow of information from viewers to the channel is constantly increasing, for example in the form of text
messages (sms) that viewers send to Telecinco while watching a programme. This requires us to take extreme caution
in protecting the data of a personal nature.
general policy of Telecinco on the protection of personal
data and are in charge of assuring compliance with internal rules and informing the Deputy Directorate of any
incidents arising in ordinary management.
Additionally, Telecinco strives to transmit to all workers, all
GROUP Companies that use or may use personal files or databases importance of conforming to the “Basic Guide for the
Protection of Personal Information”.
Telecinco complies with the legal requirement on the protection of personal information and has adopted not obligatory measures of an organizational and technical nature.
We have also implemented the required adaptations for the
new Regulations developing the Personal Data Protection
Act (Ley Orgánica de Protección de Datos de Carácter Personal or LOPD) approved in 2007, which will be implemented
throughout 2008.
The department in charge of managing personal data protection
within Telecinco is the Deputy Directorate for LOPD Management (part of the Human Resource Division), which is responsible for relations with the Data Protection Agency, receiving and
responding to any concerns and incidents which arise, checking
compliance with the rights of those affected in relation to personal data protection. There are three sections within the Deputy Directorate for LOPD Management responsible for assuring
compliance compliance with our obligations in this are:
The LOPD Committee: Comprised of the head of the
department’s most affected by the application of data
protection regulations and charged with verifying the
application of the LOPD de and other rules and to promote a policy of personal data protection within Telecinco.
Security Supervisor: Oversees security tasks and measures: coordinates and controls compliance within the scope of the information systems and studies the new measures appropriate for implementation in accordance with
technological progress and changes in the organization
of the company.
Personal Data Protection Managers (known as Gestores
P.D.P.): these are the people responsible for executing the
93
annex
96
Annex
APPENDICES
This report has been prepared by the Corporate Social Responsibility and Governance Department, which enters to the Board
of Directors Secretariat.
As in previous years, the Sustainability Committee has taken an
active part in the supply and validation of the information contained in this report. This committee is comprised of the leaders
of the various operating units of the company.
Distribution
This report is distributed in printed and digital format and
is available through the corporate website either for online
viewing or for download in Adobe PDF format. The report is
available in both Spanish and English.
Mandatory
Optional
Self
Declared
Third
Party
Checked
GRI
Checked
C
Annual Report on Activities, Governance and Corporate
Social Responsibility.
Annual Financial Statements and Corporate Governance
Report. (Report on the remuneration policy and complementary report pursuant to article 116 bis of the Spanish
Securities Exchange Act).
Adaptation to international standards
The preparation of the report and the information contained
therein have followed the latest protocols established by the
Global Reporting Initiative’s (GRI) for its “Sustainability Reporting Guidelines”, G3 version. This is the first year that we have
adopted the new version of the guidelines applying the “B”
level of conformity (see GRI indicators in the appendix to the
Report).
We have also aligned the Report with the principles of the
AA1000 Assurance Standard (AA1000AS) by AccountAbility,
which attempts to assure the quality of the reporting process.
Based on the results of an in-depth study carried out in 2007,
and the dialogue with the stakeholder groups, with this re-
C+
Report Externally Assured
2002
In Accordance
As in the previous year, this document is available in two separate reports:
B
B+
A
A+
This third Corporate Social Responsibility Report of Telecinco
covers the activities performed by the Group during the year ended 31 December 2007. This report is oriented, primarily, to answering the concerns and needs of the company’s stakeholders.
In order to improve the content of the information provided,
Telecinco has consulted with its main stakeholder groups. For
more information please see section 4 and 5 of the Corporate
Social Responsibility chapter.
About the preparation of this report
Annex
97
port Telecinco attempts to answer the interests and concerns
expressed by stakeholders, including the balanced and transparent treatment of those matters considered of the greatest
concern regarding the Corporate Social Responsibility activities
of Telecinco.
Similarly, the content has been selected in order to reflect our
commitment to complying with the principles of the United
Nations Global Compact. More detail is provided in the Corporate Social Responsibility chapter.
Scope and limitations
This report refers to the entire Grupo Telecinco S.A. group of
companies. In those cases in which the information covers a
limited scope, such as in some aspects of the environmental
section, the specific scope is indicated in a footnote.
All references in this report to “Telecinco”, “the Company” or
“the Group” refer to Gestevisión Telecinco and consolidated
subsidiaries.
Verifications
The scope of the verifications made to this report have been
limited to the financial information contained on the individual
and consolidated financial statements. Information relating to
the environment, corporate governance and corporate social
responsibility have not been verified.
Contact information
For any clarification or additional information regarding this
report, please contact:
Isabel Ortega Pérez- Villanueva
Corporate Responsibility and Governance
E-mail: [email protected]
Address: Gestevisión Telecinco
Ctra. de Fuencarral a Alcobendas, 4, 28049 Madrid
98
Annex
DIRECTORY
GESTEVISIÓN TELECINCO S.A.
ATLAS ESPAÑA
Edificio TELECINCO
Ctra. Fuencarral a Alcobendas, 4
28049 Madrid
Tel.:91 396 63 00
www.telecinco.es
Edificio TELECINCO
28049 Madrid
Tel.:91 395 92 00
Fax: 91 395 92 01
www.atlas-news.com
Head Office
Tel.:91 396 63 00
Fax: 91 396 61 78
News Department
Tel.:91 396 63 00
Fax: 91 396 64 56
TELECINCO CINEMA
María Tubau 3, 5ª Edificio Tanworth
28050 Madrid
Tel.:91 201 42 00
Fax: 91 201 43 03
FACTORIA DE FICCIÓN TELECINCO
Communications Department
Tel.:91 396 63 00
Fax: 91 396 68 42
Commercial Management
Tel.:91 396 63 00
Fax: 91 395 93 24
External Production Division
Tel.:91 201 42 00
Fax: 91 201 42 91
28050 Madrid
Tel.:91 201 42 00
Fax: 91 201 43 03
TELECINCO 2
28050 Madrid
Tel.:91 201 42 00
Fax: 91 201 43 03
PUBLIMEDIA GESTIÓN
Investor Relations Department
CSR and Corporate Governance Department
Edificio TELECINCO
28049 Madrid
Tel.:91 212 83 00
Fax: 91 212 83 01
Tel.: 913966188
Fax: 913966284
ADVANCED MEDIA
Tel.:91 396 67 83
Fax: 91 396 66 92
PUBLIESPAÑA
Edificio TELECINCO
28049 Madrid
Tel.:91 395 90 00
Fax: 91 395 90 10
Edificio TELECINCO
28049 Madrid
Tel.:91 212 83 00
Fax: 91 212 83 01
Annex
99
GLOSSARY
Access Prime Time
tand, quantify, and manage greenhouse gas emissions and
indentify opportunities for reducing emissions and operate
using clean technologies.
Time slot just prior to prime time.
Audience (television)
Number of people over the age of 4 who are watching the
television at a given moment.
Broadcast
Distribution of programmed audio and/or video signals to an
audience, which may be the public in general or a relatively
large segment thereof, such as children or youth.
GRI (Global Reporting Initiative)
Process launched in 1999 by several special interest groups
and an independent institution with a mission to develop and
disseminate global standards for sustainability reports. The
standards are voluntary and are designed to increase the quality, comparability and efficiency of sustainability reports.
GRP (Gross Rating Point)
Commercial target
The audience of individuals between the ages of 13 and 54,
from the middle and upper social classes living in towns with
10,000 inhabitants or more.
Day time
Designation used for all broadcast during daylight hours.
A measure of advertising effectiveness which consists of the
percentage of the audience which has seen a given television
spot out of the total potential market established beforehand
between the television operator and the advertiser/media centre, which is later compared with data from Taylor Nelson Sofres. GRPs are measured by the minute, although advertising
spots are usually shorter. GRP can also be calculated as net
coverage multiplied by spot frequency.
DTT (Digital Terrestrial Television)
Digital television platform broadcast by land systems, in other
words with land-based antennas.
Indicator
(Earnings before interests and taxes)
Variable or measure of action, qualitative or quantitative,
which can be used to measure an organisation’s performance
and the level of compliance with programmed actions and
proposed goals.
Free Float
Late Night
The proportion of shares available to the public and not held
by large shareholders or subjected to sales restrictions.
Broadcasting time between 00: 00 and 2: 30.
EBIT
Morphing
Greenhouse gases
Contaminating gases released into the atmosphere through
the burning of fossil fuels and other means which increase the
greenhouse effect. This effect is recognised as the main cause
of global warming. The gases include CO2, CH4, N20, HFC,
PFC, SF6 and other CO2 equivalents.
GreenHouse Gas Protocol
The GHG Protocol is an international initiative of the World
Business Council for Sustainable Development (WBCSD) and
the World Resources Institute (WRI) that provides an accounting tool for government and businesses of all sizes to unders-
Advertising vehicle the merges the image of the advertiser
with that of the channel.
Pay Out
The part of a company’s profits which are assigned to pay the
dividend. It is expressed in the form of a ratio and is the result
of dividing the dividend by the net profit and multiplying the
result by a hundred.
Power Ratio
Measures a media company’s revenue performance in comparison to the audience share it controls.
100
Annex
Prime Time
Webcast
Broadcasting time of maximum available audience, in Spain
between 21: 00 and 00: 00.
For our purposes, a television programme designed for and
broadcast over the Internet.
Remake
Weblog
In film and television, it means a new version of a previously
broadcast film of series or a localised version of such works
originally created for a different country or market.
Normally referred to with the short form “blog”, it is a periodically updated web site which compiles texts and articles by
one or several authors (bloggers) in chronological order with
the most recent appearing first. Blogs generally cover a specific subject or theme, with the author or contributors, posting
news, events or opinions on whatever they feel appropriate.
Rich Media
The term rich media was coined to describe a broad range
of digital interactive media. Rich media can be downloadable
or may be embedded in a webpage such as advertsing that
changes with a mouse click or a mouse over.
Roadshow
Touring technical, financial and commercial information forums held in different venues.
Share
The proportion of the average audience for a network with
respect to the total television audience, expressed as a percentage.
Stakeholders
Defined globally as those groups or individuals who can reasonably hope to be significantly affected by the organisation’s
activities, products and/or services, or those whose actions
can be reasonably expected to affect the organisation’s ability to successfully implement its strategies and achieve its
objectives.
Target audience
Group or groups of people to whom the station directs its
advertising messages.
Window
The different ways of commercially exploiting audiovisual content in terms of time. The most common windows for audiovisual content are cinema, DVD and video, pay per view,
subscriber services and broadcast television.
Annex
101
GRI INDICATORS
1
STRATEGY AND ANALYSIS
PAGES
1.1
Presentation of the organisation’s vision and strategy with regard to its contribution to sustainable development by top executive.
1.2
Description of the primary impacts, risk and opportunities 11
68-91
2
PROFILE
PAGES
PROFILE OF THE ORGANISATION
2.1
Name of the reporting organisation
18
2.2
Main products and/or services, including brands, where appropriate 2.3
Organisation’s operational structure
21
2.4
Location of the organisation’s headquarters 98
2.5
Countries where the organisation operates.
18-21
2.6
Nature of the ownership; legal form 18
2.7
Nature of the markets being served 40-54
2.8
Size of the reporting organisation 2-7
2.9
Significant changes during the period covered by the report in the size, structure or ownership of the organisation.
2.10
Awards and recognition received during the reporting period.
18-21
18-23
69
3
SCOPE OF THE REPORT
PAGES
PROFILE OF THE REPORT
3.1
Period covered by the report 96
3.2
Date of the most recent previous report (if it exists) 96
3.3
Reporting cycle (annually, biannually, etc.)
96
102
Annex
3.4
Contact person/people for the issues in the report
97
SCOPE AND COVERAGE OF THE REPORT
3.5
Process for defining the content of the report
96-97
3.6
Coverage of the report
96-97
3.7
Any limitation as to the scope or coverage of the report
3.8
Basis for producing reports on joint ventures, shared subsidiaries, leased installations, external services operations
97
and other situations which could considerably affect comparisons between periods and/or reporting bodies
Techniques used for measuring data and basis for calculations, including the underlying hypotheses and techniques
3.9
used for the estimates applied in the calculation of indicators and other information in the report
Description of the nature and effect of any reformulation of information already presented in previous reports
3.10
79(IE)
78- 85
and the reasons for such reformulation
Significant changes from previous periods in the scope, coverage or valuation methods used in the report
3, 23, 85
Table indicating the location of basic content in the report
101-110
3.11
47
INDEX OF GRI CONTENT
3.12
VERIFICATION
3.13
Current policies and practices regarding the external verification of the report. if the audit report or other verification
of the sustainability report is not included, the basis and scope of any other external verification must be explained.
An explanation of the relationship between the reporting entity and the auditors or other verifying entity must be explained.
97, Note (1)
4
GOVERNANCE, COMMITMENTS AND PARTICIPATION OF STAKEHOLDERS
GOVERNANCE
4.1
The organisation’s governance structure, including the board of directors’ main committees responsible for strategy
design and supervising the organisation
Indicate whether the chairman of the main governing body also holds an executive position and, if so, the functions
4.2
performed and the reason therefor.
For those organizations with a unitary management structure, percentage of independent, non executive directors
4.3
61, 62
61
Annex
on the governing body
4.4
Mechanisms which allow shareholders and employees to communicate their recommendations to the governing body
4.5
Relation between director and executive remuneration (including agreements for dismissal) and achievement
62
of the organisation’s financial and non-financial objectives (including social and environmental).
4.6
Procedures implement it to avoid conflicts of interest within the governing body
4.7
Process to determine the skill and experience needed by members of the governing body to guide the organisation’s
strategies on issues such as environmental and social opportunities and risks Statements on mission and values, principles and internal codes of conduct and policies with regard to economic,
4.8
environmental and social performance and the level of implementation
Management processes for supervising identification and management of the organisation’s financial, environmental and social
4.9
opportunities and risks, as well as its level of adherence or compliance with international standards, principles and codes of conduct.
Procedures for the self assessment of the governing body, particularly with regard to financial, environmental
4.10
and social responsibility performance.
70, 75-76, 179(IE)
59, 236-242 (IE)
189 (IE)
166 (IE)
68-69
58, 68-69
184 (IE)
COMMITMENT TO EXTERNAL INITIATIVES
4.11
Explanation of whether the organisation takes the precautionary principle or focus into account and in what way.
4.12
Commitments, series of principles or other voluntary initiatives of a financial, environmental or social nature developed
N.A.
outside the organisation which it endorses or supports
68-69
Membership of business to industrial associations and/or national and international advisory organisations
69-71
103
4.13
PARTICIPATION OF STAKEHOLDERS
4.14
List of stakeholders that the organisation has included
69-72
4.15
The basis for identifying and selecting the main stakeholders
4.16
Methods used to consult stakeholders expressed in terms of frequency of consultation according
69-72, 96
to type and group of stakeholders.
Main concerns in a set of interests that have arisen through the participation of stakeholders and the way in which
4.17
the organisation has responded in the preparation of the report.
69-72, 96
69-92
104
Annex
INFORMATION ON THE MANAGEMENT APPROACH
PAGES
FINANCIAL ASPECTS: INFORMATION ON THE MANAGEMENT APPROACH
Financial performance
26-29
Presence in the market
26-29
Indirect financial impact
29
ENVIRONMENTAL ASPECTS: INFORMATION ON THE MANAGEMENT APPROACH
Materials
83-84
Energy
83-84
Water
83
Biodiversity
N.A. Note (2)
Emissions, dumping and waste
84-85
Products and services
82-85
Regulatory compliance
Note (3)
Transportation
85
General aspects
81-85
SOCIAL ASPECTS
LABOUR PRACTICES AND WORK ETHICS: INFORMATION ON THE MANAGEMENT APPROACH
Employment
Management/Worker Relationship
73-78
76
On-the-job health and safety
77-78
Training and Education
74-75
Diversity and equal opportunities
76
Annex
105
HUMAN RIGHTS: INFORMATION ON THE MANAGEMENT APPROACH
Investment and provisioning practices
68
Non-discrimination
76
Freedom of association and collective bargaining
76- 77
Abolition of Child Labour
68
Prevention of forced and obligatory labour 68
Complaints and conciliatory procedures
68-92
Security Practices
73-78
Rights of indigenous peoples
N.A. Note (5)
SOCIETY: INFORMATION ON THE MANAGEMENT APPROACH
Community
79-81
Corruption
68
Public Policy
71
Behaviour of Unfair Competition
71
Regulatory compliance
28 (IE)
RESPONSIBILITY FOR PRODUCTS: INFORMATION ON THE MANAGEMENT APPROACH
Customer Health and Safety
70-71
Product and Service Labelling
70-71, 86-92
Marketing Communications
71
Customer Privacy
92
Regulatory Compliance
28 (IE)
106
Annex
FINANCIAL PERFORMANCE INDICATORS
ASPECT: FINANCIAL PERFORMANCE
EC1. Economic value generated and distributed
29
EC2. Financial impact and other risks and opportunities for the activities of the organisation due to climate change
Note (4)
EC3. Coverage of the obligations of the organisation derived from social welfare programmes
118 (IE)
EC4. Significant subsidies received from governments
92 (IE)
ASPECT: PRESENCE IN THE MARKET
EC6. Policy, practices and proportion of expenses corresponding to local suppliers in places where significant operations are developed
Note (5)
EC7. Procedures for local hiring and proportion of senior management from the local community in places where significant operations are developed.
Note (5)
ASPECT: INDIRECT ECONOMIC IMPACT
EC8. development and impact of investments in infrastructure and services rendered primarily for the public benefit through, pro bono or in kind commercial commitments
68-92
ENVIRONMENTAL PERFORMANCE INDICATORS
ASPECT: MATERIALS
EN1. Total consumption of raw materials by weight and volume
83
EN2. Percentage of materials used that are appraised materials
84
ASPECT: ENERGY
EN3. Direct energy consumption, itemised by primary sources
83
EN4. Indirect energy consumption, itemised by primary sources
83
ASPECT: WATER
EN8. Total water consumption by source
83
Annex
ASPECT: BIODIVERSITY
EN11. Location and extension of land owned, leased or managed in biodiversity-rich habitats or environmentally protected lands
N.A. Note (2)
EN12. Analysis of the main impacts on biodiversity of activities and/or products and services in land, sea and fresh water environments
N.A. Note (2)
ASPECT: EMISSIONS, DUMPING AND WASTE
EN16. Total greenhouse gas emissions (direct and indirect) by weight
85
EN17. Other indirect greenhouse gas emissions by weight
85
EN19. Use and emission of ozone reducing substances, by weight
85
EN 20. N2O, SO2 and other significant atmospheric emissions, itemised by type
85
EN 21. Total amount of wastewater, itemised by type and destination
N.A. Note (6)
EN22. Total weight of waste managed, by type and treatment method
84
EN23. Total number and volume of most significant accidental spills
N.A. Note (6)
ASPECT: PRODUCTS AND SERVICES
EN26. Initiatives to mitigate the environmental impact of the products and services and the degree of mitigation achieved
82
EN27. Percentage of products sold and their packing materials that are recovered at the end of the useful life, by product category
N.A.
107
ASPECT: Regulatory Compliance
EN28. Incidents and fines related to breach of internationally applicable agreements/treaties/declarations and local, regional, subnational and national
regulations on environmental issues
Note (3)
LABOUR PRACTICE PERFORMANCE INDICATORS
ASPECT: EMPLOYMENT
LA1. Breakdown of the worker collective by type of employment, contract and region
73, Note (7)
LA2. Total number of employees in the average turnover, broken down by age, gender and region
73
108
Annex
ASPECT: MANAGEMENT/WORKER RELATIONSHIPS
LA4. Percentage of employees covered by collective bargaining agreements
77
LA5. Minimum prior warning needed for organisational changes, including those specified in collective bargaining agreements
77
ASPECT: ON-THE-JOB HEALTH AND SAFETY
LA7. Rates of absenteeism, occupational accidents and injuries, days lost and number of work related deaths by region.
LA8. Education, training, advisory, risk prevention and control programmes applied to workers, their families or members of the community
79-81
ASPECT: EDUCATION AND TRAINING
LA10. Average number of training hours per employee, broken-down by employee category 78
74- 75
ASPECT: DIVERSITY AND OPPORTUNITY
LA13. Breakdown of the governing bodies and workforce by gender, age, minority status and other diversity indicators
LA14. Any gaps between the base salary of men and women, broken down by professional category
61, 73
76
HUMAN RIGHTS PERFORMANCE INDICATORS
ASPECT: INVESTMENT AND PROVISIONING PRACTICES
HR1. Percentage and number of total significant investment agreements that include human rights clauses or been subject to human rights analysis
Note (8)
HR2. Percentage of primary distributors and contractors that have been subject to human rights analysis and measures at that as a result thereof
Note (8)
ASPECT: NON-DISCRIMINATION
HR4. Total number of discriminatory incidents and measures adopted
ASPECT: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
HR5. Company activities in which freedom of association and collective bargaining may be at risk and measures adopted to protect these rights
76
76- 77
ASPECT: CHILD LABOUR
HR6. Activity detected that carry a potential risk of child labour incidents and measures adopted to prevent it
68, 76
Annex
109
ASPECT: FORCED LABOUR
HR7. Operations identified as a significant risk of force or non-consensual labour and measures adopted to contribute to the elimination thereof
68, 76
SOCIAL INDICATORS
ASPECT: COMMUNITY
SO1. Nature, scope and effectiveness of practices and programmes for the evaluation and management of the impact of operations on communities,
including entrances, exits and operation.
N.D.
ASPECT: CORRUPTION
SO2. percentage and total number of business units analysed for risks relating to corruption
100%
SO3. Percentage of employees trained in anticorruption policies and procedures
68
SO4. Measures taken in response to symptoms of corruption
68
ASPECT: PUBLIC POLICY
SO5. Position and participation in public policy and any lobbying activities
71
SO8. Total amount of fines and number of nonmonetary sentences imposed for the violation of laws and regulations
28 (IE)
PRODUCT LIABILITY PERFORMANCE INDICATORS
ASPECT: CUSTOMER HEALTH AND SAFETY
PR1. Lifecycle phases of products and services which are evaluated, for potential improvement, for the impact they may on the health
and safety of customers, and the percentage of significant products and services subject to such evaluation procedures
68-92
ASPECT: PRODUCT AND SERVICE LABELLING
PR3. Description of policies and management/procedure systems and compliance mechanisms on product labelling and information.
86-92
110
Annex
ASPECT: MARKETING COMMUNICATIONS
PR6. Programmes for compliance with laws or conformity to voluntary codes and standards mentioned in marketing communications,
including advertising, promotions and sponsorships.
71
PR9. Cost of any significant fines for failure to comply with regulations relating to products and services provided by the organisation.
28 (IE)
(1) The Individual and Consolidated Financial Statements of Telecinco have been audited by Deloitte. The attached financial statements have been audited.
(2) All of the facilities of Telecinco are located in industrial parks or urban areas that are far from any natural or protected environment, and therefore the activities of the company have no
impact on biodiversity.
(3) The company has not been fined or otherwise found guilty of any violation of environmental rules and regulations
(4) As a television station, with respect to climate change Telecinco has the same risk as any other human activity. there are no specific risks derived from the business activities of the company. However, there are opportunities. As a television broadcaster, Telecinco can play a role in increasing awareness and distributing good practices that contribute to generating increased
awareness and concern among the public for the problems arrive from climate change.
(5) The operating context in which Telecinco develops its business is explained throughout this report. Territorially speaking, practically all of the activities of the Group are carried out within
Spain, with 99.9% of the workforce being located within Spain at 31 December 2007.
(6) Telecinco’s headquarters are located is urban environments and all water consumed is derived from the public network .
(7) At 31 December 2007 there were a total of 6 workers in Italy.
(8) Practically 100% of the suppliers of the company are from Europe and the United States, a majority of which, for operational reasons being from Spain. Accordingly, the applicable legal
framework for assuring human rights are those of Spain.
IA: Annual Report on Activities, Governance and Corporate Social Responsibility 2007
IE: Financial Statements - Annual Accounts and Corporate Governance Report
NA: Not applicable
ND: Not available
GESTEVISIÓN TELECINCO, S.A.
Ctra. de Fuencarral a Alcobendas, 4
28049 Madrid, España
Client: GESTEVISIÓN TELECINCO, S.A., Communications and External Relations Department
Consultancy: Responsables Consulting
Print: Coyve

Annual Report on Activities, Governance and Corporate

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