Roularta Media : REGULATED INFORMATION - Press release

10 MARCH 2017

Regulated information EMBARGO - 10 March 2017, 08.15 CET Roularta Media Group

Roularta Media Group presents rising EBITDA figures and a stronger balance sheet, despite significant launch costs during the development years of digital initiatives and pressure on the advertising market.

Proposal for payment of a 0.50 euros gross dividend per share.

The 360° strategy of Roularta Media Group (RMG) is bearing fruit. RMG is omnipresent on TV, radio, in print and digitally with strong brands that are appreciated by viewers, listeners, readers, surfers and advertisers alike.

With a slight increase over last year of 1.1% in combined sales (incl. joint ventures) to 476.4 million euros, and a limited decline of -4.7% over last year in consolidated sales (excl. joint ventures) to 276.5 million euros, Roularta Media Group per- formed well in the media sector.

The Group's EBITDA increased by 2% in 2016, both including and excluding joint ventures. The 2016 consolidated (excl. joint ventures) EBITDA of 34.4 million euros is 2.4% or 0.8 million euros above that of 2015. The 2016 combined (excl. joint ventures) EBITDA of 51.8 million euros is 2.1% or 1.1 million euros above that of 2015. However, in 2016 there are important investments for the future that will put pressure on EBITDA such as launch costs for the e-commerce platform Storesquare.be and the telecom branch Mobile Vikings.

Consolidated EBIT for 2016 amounts to 24.9 million euros, a decline of 6.5 million euros. The reason for the rise in EBITDA and a decline in EBIT is principally the one-off positive effect in 2015 of the reversal of provisions and write-downs against 2016 for 5.7 million euros. A similar effect can be seen in the combined EBIT for 2016 of 34.8 million euros, 5.8 million euros less than last year.

The decline in net financial costs by 0.8 million euros to 4.7 million euros in 2016 on a consolidated basis, brings the net result attributable to RMG to 21.5 million euros, or 7.8% on sales or 1.72 euros per share. The proposal of the Board of Directors is to keep the dividend the same as last year, i.e. 0.50 euros per share, representing a payout of approximately 30% of the consolidated net profit.

The Group's strong cash flow reduces the net debt position by 18.2 million euros to 57.4 million euros on a consolidated basis. The liquidity, gearing and solvency ratios also improved significantly in 2016 due to the stronger balance sheet.

Note on consolidated and combined references:

Due to application of the IFRS 11 standard, the joint ventures were included in the consolidation using the equity method instead of the proportionate method. All refer- ences to 'consolidated' figures always concern the official data in application of IFRS 11. In the income statement, the net result of the joint ventures is included in the EBITDA as 'Share in the result of associated companies and joint ventures'.

In order to ensure the continuity of information about underlying operational performance and in accordance with IFRS 8, however, the financial information is given by segment as 'combined' figures, including the pro-rated share of Roularta Media Group in joint ventures, after elimination of intra-group elements, in accordance with the proportional consolidation method.

1. FINANCIAL KEY FIGURES FOR 2016

2. Consolidated key figures

   in thousands of euros	31/12/16	31/12/15	Trend	Trend (%)
   INCOME STATEMENT
   Sales	276,464	290,226	-13,762	-4.7%
   Adjusted sales (1)	276,427	289,416	-12,989	-4.5%
   EBITDA (2)	34,405	33,598	807	+2.4%
   EBITDA - margin	12.4%	11.6%
   EBIT (3)	24,887	31,363	-6,476	-20.6%
   EBIT - margin	9.0%	10.8%
   Net finance costs	-4,687	-5,441	754	+14%
   Income taxes	72	46,089	-46,017	-100%
   Net result from continuing operations	20,272	72,011	-51,739	-72%
   Result of discontinued operations	0	-7,770	7,770	-100%
   Net result	20,272	64,241	-43,969	-68%
   Attributable to minority interests	-1,201	-127	-1,074	-846%
   Attributable to equity holders of RMG	21,473	64,368	-42,895	-67%
   Net result attributable to equity holders of RMG - margin	7.8%	22.2%
   Number of employees at closing date (4)	1,354	1,364	-10	-0.8%

3. Adjusted sales is the sales comparable to 2015 excluding changes in the consolidation scope.

4. EBITDA is equal to EBIT plus depreciation, write-downs and provisions.

5. EBIT is equal to operating income, including the share in the result of associated companies and joint ventures.

6. Excluding joint ventures (Medialaan, Bayard, etc.).

Consolidated sales in 2016, which under IFRS 11 takes no account of joint ventures including Medialaan and Plus Maga- zine (in Belgium, the Netherlands and Germany), declined slightly (-4.7%, from 290 to 276 million euros). The decrease in advertising revenues at Local Media and the magazines (-6%) was offset by the strong performance of internet advertising revenue (+14%). Subscription revenue was virtually stable (-1%). Newsstand sales (-9%) dropped due to the disappearance of Belgian sales of Point de Vue. In addition, there was less commercial printing of the Group's former French magazines (-6%).

The increase in EBITDA for 2016 amounts to 0.8 million euros or +2% compared to 2015. This increase is due to non-recur- ring costs in 2015 for payment in the Kempenland dispute (6.7 million euros). In 2016 we invested in future digital activities such as the e-commerce platform Storesquare.be and the telecom/data platform Mobile Vikings, which also put pressure on the EBITDA. EBIT in 2016 contains no more major one-off items, which was still the case in 2015 (Kempenland and impair- ment losses on titles), and amounted to 24.9 million euros.

Lower net finance costs due to a lower debt position in 2016 compared to 2015 result in a net result attributable to equity holders of RMG of 21.5 million euros, or 1.72 euros per share.

Consolidated key figures in euros	31/12/16	31/12/15	Trend (%)
EBITDA	2.75	2.69	+2%
EBIT	1.99	2.51	-21%
Net result attributable to equity holders of RMG	1.72	5.16	-67%
Net result attributable to equity holders of RMG after dilution	1.70	5.14	-67%
Weighted average number of shares	12,515,767	12,486,031	+0.2%
Weighted average number of shares after dilution	12,611,686	12,517,300	+0.8%

7. Combined key figures

(applying the proportional consolidation method for joint ventures)

in thousands of euros	31/12/16	31/12/15	Trend	Trend (%)
INCOME STATEMENT
Sales	476,406	471,027	5,379	+1.1%
Adjusted sales (1)	460,199	470,217	-10,018	-2.1%
EBITDA (2)	51,821	50,765	1,056	+2.1%
EBITDA - margin	10.9%	10.8%
EBIT (3)	34,772	40,537	-5,765	-14.2%
EBIT - margin	7.3%	8.6%
Net finance costs	-4,829	-5,319	490	+9%
Income taxes	-9,671	36,793	-46,464	-126%
Net result from continuing operations	20,272	72,011	-51,739	-72%
Result of discontinued operations	0	-7,770	7,770	-100%
Net result	20,272	64,241	-43,969	-68%
Attributable to minority interests	-1,201	-127	-1,074	-846%
Attributable to equity holders of RMG	21,473	64,368	-42,895	-67%
Net result attributable to equity holders of RMG - margin	4.5%	13.7%
Number of employees at closing date (4)	1,836	1,830	6	+0.3%

1. Adjusted sales is the sales comparable to 2015 excluding changes in the consolidation scope.

2. EBITDA is equal to EBIT plus depreciation, write-downs and provisions.

3. EBIT is equal to operating income, including the share in the result of associated companies and joint ventures.

4. Joint ventures (Medialaan, Bayard, etc.) are included proportionally.

Combined sales increased by 5.4 million euros or 1.1%, mainly due to advertising revenue for television at Medialaan and the acquisition of Mobile Vikings.

EBITDA increased compared to last year by 1.1 million euros to 51.8 million euros, despite investments in future digital activ- ities such as e-commerce platform Storesquare.be and the telecom/data platform Mobile Vikings. Net financial expenses decreased in line with the declining debt position. Taxes mainly came from the audiovisual segment.