2017 RESULTS 27 February 2018 1 Resultados 2017 Results 2017 - PowerPoint PPT Presentation

2017 RESULTS 27 February 2018 1 Resultados 2017 Results 2017

CONTENTS 1. OVERVIEW OF 2011-2017 2. PERFORMANCE IN 2017 3. APPENDICES 2 Results 2017

DECOUPLING OF ADVERTISING MARKET FROM MACRO YoY variation in advertising market 2012-2017 (traditional historical series) Data in % 14.0% 12.3% 10.7% 5.8% 5.0%5.0% 2.9% 0.5% 0.6% -1.1% -2.5% -6.7% -7.1% -8.1% -10.1% -14.8% -18.0% -21.2% 2012 2013 2014 2015 2016 2017 Offline press adv. Internet adv. Total advertising market 1 Nominal GDP 2 -2.9% -1.4% 1.2% 4.1% 3.6% 4.0% Nominal consumption 2 -1.3% -2.1% 1.7% 2.9% 2.9% 4.3% 3 Source: i2p and INE. Note 1: Internet data for 2017 is online press, total market excl. social media. Note 2: 9M17 accumulated data for Results 2017 2017.

SOCIAL MEDIA IMPACT SUPPORTS ADVERTISING MARKET YoY variation in advertising market 2012-2017 (new series with social media) Data in % 22.2% 19.6% 17.9% 15.2% 8.6% 7.1% 6.6% 5.7% 4.3% 4.1% 2.0% 1.4% -0.6% -6.9% -8.0% -8.5% -17.6% -18.6% 2012 2013 2014 2015 2016 2017 Traditional adv. Digital adv. Total advertising market Nominal GDP 1 -2.9% -1.4% 1.2% 4.1% 3.6% 4.0% 4.3% Nominal consumption 1 -1.3% -2.1% 1.7% 2.9% 2.9% 4 Results 2017 Source: i2p and INE. Note 1: 9M17 accumulated data for 2017.

CORRECT DECISIONS ON DEBT IMPACT EBITDA Performance of main financials at VOCENTO 2011-2017 €m 240.6 192.3 166.6 163.0 163.1 157.9 156.5 138.7 142.9 125.9 108.8 149.3 66.4 56.2 50.2 44.1 40.7 38.5 37.0 52.2 49.7 2011 2012 2013 2014 2015 2016 2017 Sarenet ABC building Total impact on NFD Decisions to reduce debt €12.8m €35.0m Total impact on EBITDA which impacted EBITDA €2.7 €2.0m Comparable EBITDA 1 NFD Advertising 5 Results 2017 Note 1: not including personnel adjustment measures and one-offs.

PROTECTION OF MARGIN DESPITE FALL IN CIRCULATION Development of margin on circulation 2011-2017 €m 192.4 Variation 175.2 168.9 2011-2017 158.0 148.7 9.5 139.3 5.2 Revenues from sales of -69.1 circulation 1 0.6 0.1 - 0.2 -2.6 2012 2013 2014 2015 2016 2017 Combined 22.5 margin on Var. add-ons circulation 1 circulation 1.9 -1.0 2.9 1.1 2.7 2.3 margin Launch of ABC Variation in circulation margin at ABC and regional Circulation revenues, ABC and regional Gold Card 6 Results 2017 Note 1: Including circulation margin and variation in circulation add-ons.

INCREASE IN EBITDA THANKS TO COSTS REDUCTION Comparable EBITDA VOCENTO 2011-2017 VOC brands improve comparable Variation 2017 vs 2011 except comparable EBITDA (€m) EBITDA by €+4.4m 9.3 49.7 26.8 -4.7 40.7 -50.3 13.6 22.5 -1.9 -6.3 Advertising 2 Combined Personnel Perimeter Comp. EBITDA Comp. Add-ons Printing Others 5 costs effect EBITDA circulation 3 Audiovisual 1 EBITDA margin 4 plants Sarenet/ABC 2011 1 margin 2017 1 margin 7 Note 1: not including personnel adjustment measures or one-offs. Note 2: excluding Audiovisual and Qué!. Note 3: including circulation Results 2017 add-ons. Note 4: only including sales add-ons. Note 5: variation of other revenues and costs.

CONTENTS 1. OVERVIEW OF 2011-2017 2. PERFORMANCE IN 2017 3. APPENDICES 8 Results 2017

MAIN ACHIEVEMENTS IN 2017 REVENUES In a flat advertising market (2017 +0.6% 1 ), VOCENTO brands have improved their share of the press market • Advertising revenues maintained: VOCENTO 2017 +0.1 %. In 4Q17, growth was +3.8% • Divergence between national and local advertising markets: local advertising revenues 2017 +2.6% • PROFITABILITY Margin on circulation maintained (2016/17 € -0.3m, including savings on circulation add-ons • Comparable EBITDA 2017: €49.7m, down € -2.6m (-4.9%). Impact of lease at ABC (€ -2.0m). Pro forma 2 change in • comparable EBITDA 4Q17 €+0.3m Consolidated net income 2017: € -4.8m impacted by non- cash impairments to tax credits of €14.1m • Agreement with third parties to achieve efficiencies: content transaction with Izen, printing deal with Prisa • (2018) CASH GENERATION The net financial position was € - 56.2m (improving by €+10.3m in the year). NFD/comparable EBITDA1.1x • Ordinary cash generation: €21.6m , more than offsetting compensation payments and other extraordinaries • REVENUE DIVERSIFICATION MEASURES Diversification strategy accelerated: Madridfusión, Shows on Demand and Factor Moka • 9 Results 2017 Note 1: i2p excluding social media. Note 2: excluding effect of deconsolidation of Veralia Contenidos.

ADVERTISING: INCREASE IN MARKET SHARE VOC increases offline market share in 2017 YoY variation % 10.7% 8.9% 6.2% 1 0.6% 0.1% -1.4% -2.2% -6.7% Internet Online Total Total Offline press market Press market Press ex social media market ex social media market Market VOCENTO 10 Results 2017 Market source: i2p. Note 1: Local portals, ABC.es and Classifieds.

INCREASED WEIGHT AND OUTPEFORMANCE OF LOCAL ADVERTISING National advertising vs local 1 National advertising 1 : Print vs Digital 50.5% 52.9% 49.5% 47.1% €168.2m €167.2m Var % 2016 2017 2016-2017 Offline Online National -4.1% 52.3% 54.0% Local 2.6% Local advertising 1 : Print vs Digital Total -0.6% 15.3% 13.2% 47.7% 46.0% 2016 2017 86.8% 84.7% Total national Total local 2016 2017 Offline Online 11 Results 2017 Note 1: Gross advertising data. Not including audiovisual or others.

REGIONAL: PROFITABILITY MAINTAINED Comparable EBITDA at Regional Variation 2016 vs 2017 except comparable EBITDA €m and comparable EBITDA margin % EBITDA margin 1 14.1% 14.6% 2.1 -4.0 3.2 -1.7 38.9 38.6 Combined 2016 1 Advertising 2 Personnel Commercial 2017 1 circulation costs and others 3 costs 1 margin 12 Note 1: excluding adjustment measures and one- offs € - 4.2m and 2017 € -4.8m. Note 2: print and digital. Note 3: including commercial Results 2017 costs, LDK launch costs, printing plant margins and other fixed costs.

ABC: IMPACT OF NEW LEASE ON EBITDA Comparable EBITDA at ABC Variation 2016 vs 2017 except comparable EBITDA €m and comparable EBITDA margin % Printing agreement with Prisa in 2018 EBITDA margin 1 7.9% 5.9% 7.8 -3.1 1.5 -2.0 1.4 5.6 Combined 2016 1 Advertising 2 Personnel 2017 1 Lease of circulation costs and others 3 building margin 13 Note 1: excluding personnel adjustment measures and one- offs 2016 € - 2.6m and 2017 € -3.7m. Note 2: print and digital. Note 3: others Results 2017 include personnel expenses, printing plant margins, commercial expenses and other fixed costs.

OPTIMIZED STRATEGIES FOR MARKETING INVESTMENT ABC Gold Card: Intelligent Marketing (customized mass marketing) Main results Aims • 75% of loyal customers identified • To identify the client a the point of ― 30,000 ABC cards activated sale ― 12,000 active cards on average per week (92% • To support recurrent sales and Heavy Users) mitigate organic falls in circulation • Incremental impact on circulation (4,000 daily • To make a return on investments in copies) marketing promotions • Enhanced marketing To be extended to VOCENTO regional newspapers in 2017-2018 14 Results 2017

ELEMENTS OF THE DIGITAL STRATEGY Advertising revenues Payment models Transactional businesses Digital advertising and e- More than 14,000 subscribers Revenues c.€3m commerce revenues 32% of to ON+ the total 15 Results 2017

DIVERSIFICATION AND NEW BUSINESSES Gastronomy: two leading national and international food-and-drink trade fairs 1. Madridfusión: 2. Gastronomika San Sebastián: 1,500 participants • The 2018 event outperformed last year • ― Around 2,000 participants +20% vs 2017 215 speakers from 45 countries (more than 70 Michelin • stars) ― 75 international speakers (55 Michelin stars) ― 13,000 professional visitors 13,000 professional visitors • Potential for internationalisation in Asia and LatAm • Other businesses 1. Third party editorial content production 2. Organization of events via crowdfunding 3. Musical events 16 Results 2017

CONTINUED FOCUS ON COSTS Comparable EBITDA at VOCENTO 2016-2017 Variation 2016 vs 2017 except comparable EBITDA (€m) Corporate Press online+offline : € -2.7m New businesses: €0.8m € -0.7m 52.2 -9.4 9.1 -0.5 -2.4 0.2 -0.2 0.8 -0.7 2.7 -0.2 49.7 -2.0 v v v Comp. Circulation Savings Advertising Commercial ABC Savings in Printing Audiov. Classifieds Diversifac 4 Corporate Comp. EBITDA revenues In costs and Lease personnel and EBITDA 2016 1 circulation 2 others 3 expenses distrib. 2017 1 17 Note 1: excluding personnel adjustment measures and one- offs 2016 € - 10.1m and 2017 € -10.1m. Note 2 : including savings in circulation Results 2017 promotions. Note 3: including LDK expenses, higher costs for events, etc. Note 4: Gastronomía and Factor Moka.

CONSOLIDATED P&L IFRS Data in €m 2017 2016 Var% Operating revenues 423.9 448.8 -5.5% Comparable operating expenses 1 -374.2 -396.5 5.6% Comparable EBITDA 1 49.7 52.2 -4.9% Compensation and one-offs -10.1 -10.1 0.5% EBITDA 39.6 42.1 -6.0% Sale of EBIT 17.8 4 4.4 -59.8% ABC Financial result and others -4.8 -6.8 29.1% Building Pre-tax result 14.9 34.8 -57.3% Corporation tax Adjustment 85.9% -13 .1 -92 .6 RD Law to tax 1.8 -57.8 n.a Profit before minority interest 3/2016 credits €14.1m Attributable net income -4.8 -60.0 92.0% (non-cash) 18 Results 2017 Note 1: excluding personnel adjustment measures and one-offs 2017 - 10.1m and 2016 € -10.1m.