THE GOVERNANCE SYSTEM CHOSEN BY THE COMPANY
The Company is governed according to a traditional system, which consists of the shareholders' meeting, the board of directors, and the board of statutory auditors. In compliance with the most widely adopted international governance principles, the board of directors has set up internal committees with advice and proposition functions, as well as the Executive Committee.

More specifically, the board has set up a remuneration committee, comprising of independent directors and an internal control committee, predominantly comprising of independent directors pursuant to the Corporate Governance Code issued by the Italian Stock Exchange.

The Company’s absolute majority shareholding is held by De Agostini S.p.A., which is fully owned by B&D Holding di Marco Drago e C. S.A.p.A.. Therefore the Company is, included in the Consolidated Financial Statements of B&D Holding di Marco Drago e C. S.A.p.A. and is subject to the direction and coordination of De Agostini S.p.A..