Roularta Media : REGULATED INFORMATION - Press release

21 AUGUST 2017

Regulated information EMBARGO - 21 August 2017, 08.15 CET Roularta Media Group

Radio and mobile did not adequately compensate for the investments in the launch costs of new digital initiatives and declining advertising revenue. This resulted in reduced profit for the first six months of the year.

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

The revenue decrease (excluding the impact of acquisitions) of 5.0% (or € 12.1 million) on a combined basis is slightly bet- ter than the media sector average. Within the print segment, the decline was 6.4% or € 9.7 million, reflected mainly in the decline in advertising revenue and in printing orders from third parties. Within the audiovisual segment, including acquisi- tions, there was an increase of 1.4% or € 1.2 million, thanks to the mobile telecom products. There was a decrease of 2.9% or € 2.6 million before the impact of acquisitions, mainly due to TV advertising compared with the strong first half of 2016.

In the print segment, the gross margin percentage - revenue less raw materials, consumables and goods for resale remained stable. In the audiovisual segment, which enjoys good viewing ratings, investments were made in strong content for TV, which had a negative impact on the gross margin percentage.

The decline in revenue also had a direct impact on the Group's EBITDA for the print segment (-€ 7.6 million) and the audio- visual segment (-€ 4.6 million).

In the print segment, the investments in the launch costs for Storesquare and Proxistore are also included in the EBITDA. The audiovisual segment also invested heavily, with impact on the EBITDA, in a new digital platform for mobile telecom activities and in the joint data team formed between Medialaan and De Persgroep Publishing.

On the combined figures, there was an increase in depreciation of € 2.7 million compared to last year, mainly due to depre- ciation of the purchase cost of Mobile Vikings and CAZ, and the change of the expected life of some titles within the print segment from indefinite to definite, which was not a cash expenditure.

The slight increase in taxes in the print segment compared to June 2016 is related to the reversal of a deferred tax asset and therefore was not a cash expenditure. In the audiovisual segment, there was a sharp fall in taxes due to lower profits, but also due to an increase in deferred tax asset on acquisitions last year.

All of this resulted in a net profit for the RMG shareholder of € 1.3 million compared to € 14.7 million last year.

Note on combined and consolidated references

Under the application of the accounting standard IFRS 11, the joint ventures are consolidated by the equity method in place of the proportionate consolidation method. Hereinafter, all references to 'consolidated' figures always relate to the official data with IFRS 11 applied. In the income statement the net result of the joint ventures is accounted for as 'share in the result of companies accounted for using the equity method' as part of the operating cash flow (EBITDA). However, to ensure continu- ity of information on underlying operational performance and in accordance with IFRS 8, the financial data by segment is given in the form of 'combined' figures, including Roularta Media Group's pro rata share in the joint ventures, after elimination of intra-group elements, according to the proportionate consolidation method.

1. FINANCIAL KEY FIGURES FOR THE FIRST HALF OF 2017

2. Consolidated key figures

   in thousands of euros	30/06/17	30/06/16	Trend	Trend (%)
   INCOME STATEMENT
   Sales	132,570	143,035	-10,465	-7.3%
   Adjusted sales (1)	132,570	143,035	-10,465	-7.3%
   EBITDA (2)	8,829	19,911	-11,082	-55.7%
   EBITDA - margin	6.7%	13.9%
   EBIT (3)	3,383	16,206	-12,823	-79.1%
   EBIT - margin	2.6%	11.3%
   Net finance costs	-2,427	-2,315	-112	4.8%
   Income taxes	-455	30	-485
   Net result	501	13,921	-13,420	-96.4%
   Attributable to minority interests	-780	-801	21	2.6%
   Attributable to equity holders of RMG	1,281	14,722	-13,441	-91.3%
   Net result attributable to equity holders of RMG - margin	1.0%	10.3%
   Number of employees at closing date (4)	1,323	1,331	-8	-0.6%

3. Adjusted sales = sales on a like-on-like basis with 2016, excluding changes in the consolidation scope.

4. EBITDA = EBIT + depreciations, write-downs and provisions.

5. EBIT = operating result, including the share in the result of associated companies and joint ventures.

6. Joint ventures (Medialaan, Bayard etc.) not included.

Consolidated sales for the first half of 2017, which under IFRS 11 exclude joint ventures, such as Medialaan and Plus Maga- zine, declined by 7.3% from € 143.0 to 132.6 million. The decrease in advertising revenues for Local Media (-9.4%) and the magazines (-7.1%) was partially offset by the strong performance of internet advertising revenue (+15.1%) and subscription recruitment (+0.5%). Newsstand sales declined by 15.2%, due among others to the discontinuation of the publication Royals. Printing for third parties was down by 11.6%, mainly due to work for Altice and Idéat, the French activities divested in 2015.

The EBITDA declined due to falling revenue, decreased share in the result of associated companies and joint ventures (-€ 3.3 million June 2017 compared to June 2016), and launch costs for future digital activities such as the e-commerce and marketing platform Storesquare.be. The EBIT evolved in line with the EBITDA, increased by higher depreciation (+€ 0.9 mil- lion) for intangible fixed assets in June 2017 compared to June 2016. This mainly concerns depreciation on titles for which a change in accounting estimate was made, and the expected life span was changed from indefinite to fixed.

Taxes in June 2017 were a 'non-cash' item due to the reversal of a deferred tax asset in the HealthCare entity.

The decrease in the EBIT and higher taxes resulted in a decrease in the net result from € 13.9 million to € 0.5 million and a

€ 13.4 million lower net result for RMG shareholders of € 1.3 million.

Consolidated key figures in euros	30/06/17	30/06/16	Trend (%)
EBITDA	0.70	1.59	-56.0%
EBIT	0.27	1.30	-79.2%
Net result attributable to equity holders of RMG	0.10	1.18	-91.5%
Net result attributable to equity holders of RMG after dilution	0.10	1.17	-91.5%
Weighted average number of shares	12,533,021	12,509,223	0.2%
Weighted average number of shares after dilution	12,628,287	12,606,876	0.2%

7. Combined key figures

(applying the proportional consolidation method for joint ventures)

in thousands of euros	30/06/17	30/06/16	Trend	Trend (%)
INCOME STATEMENT
Sales	232,703	240,947	-8,244	-3.4%
Adjusted sales (1)	228,891	240,947	-12,056	-5.0%
EBITDA (2)	16,451	28,639	-12,188	-42.6%
EBITDA - margin	7.1%	11.9%
EBIT (3)	7,147	22,738	-15,591	-68.6%
EBIT - margin	3.1%	9.4%
Net finance costs	-2,501	-2,394	-107	4.5%
Income taxes	-4,145	-6,423	2,278	-35.5%
Net result	501	13,921	-13,420	-96.4%
Attributable to minority interests	-780	-801	21	2.6%
Attributable to equity holders of RMG	1,281	14,722	-13,441	-91.3%
Net result attributable to equity holders of RMG - margin	0.6%	6.1%
Number of employees at closing date (4)	1,806	1,799	7	0.4%

1. Adjusted sales = sales on a like-on-like basis with 2016, excluding changes in the consolidation scope.

2. EBITDA = EBIT + depreciations, write-downs and provisions.

3. EBIT = operating result, including the share in the result of associated companies and joint ventures.

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

Combined revenue decreased slightly by 3.4%, due to a drop in revenue in the print segment. More details can be found in section 2.

The EBITDA decreased compared to last year due to further investments in future digital activities such as the e-commerce platform Storesquare.be and the Mobile Vikings platform, declining revenue, and higher content costs in the audiovisual segment.

The EBIT evolved in line with the EBITDA, increased by additional depreciation for intangible fixed assets (+€ 2.5 million). This mainly concerned purchase price allocations related to the acquisitions of Mobile Vikings and CAZ in 2016, and changes in the depreciation of some titles from an indefinite to a fixed expected life.