PRESS RELEASE

8 MARCH 2022

Regulated information EMBARGO - 8 March 2022 at 7:45 am Roularta Media Group

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Roularta exceeds € 300 million in revenue and

books a record EBITDA of € 41.0 million

  • REVENUE +17.1% vs. previous year
  • EBITDA compared to REVENUE double digit: 13.6% (+6.0% YOY)
  • EBITDA € 3.50/share vs. 1.57 last year
  • NET RESULT € 16.0 million or € 1.42/share
  • DIVIDEND €1.00/share or 5.3% gross return
  • CASH accretion of € 16.1 million

Thanks to internal growth of advertising and reader income in the Belgian market, external growth in the Dutch market, strict cost control and Mediafin's results, Roularta has confirmed its track record of recent years with an ever- increasing operational cash flow with the exception of Covid year '20. EBITDA represents an 'all-time high' for the past 10 years. The acquisition of New Skool Media in the Netherlands was completed, and from 1 March 2022 will contribute positively to the group's result.

Revenue finished at € 300.2 million, representing absolute growth of € 43.9 million compared to the same period last year (or +17.1% YOY) and € 4.4 million compared to 2019.

The evolution of the new Roularta (see text frame below) from a B2B to a B2C environment continued with greater revenue generated in 2021 from the readership market (€ 127.1 million) than from advertising (€ 112.7 million), where in 2019 this was still the reverse. In 2021, advertising revenue was €

20.1 million higher than in 2020, and the digital evolution continued; among others, programmatic and native advertising were responsible for a strong increase in digital advertising revenue (+40.5% vs. last year). Kanaal Z also registered record growth of 50.3% YOY1 in advertising and partnership revenue.

After an already historic increase in 2020, subscription revenues grew by € 18.0 million in 2021 compared to 2020, and € 25.4 million vs. 2019. This was due to internal growth and the full consolidation of the previously held joint venture brands including Plus Magazine Netherlands, Plus Magazine Germany and Télépro since 1 April 2021.

Other revenue, such as events and reader trips, were still affected by Covid-19 because they did not take place or took place digitally. Revenue from printing for third parties was higher than in 2020, despite the loss due to consolidation of external revenue from the acquired joint ventures.

Digitisation continues with the launch of the "Mijn Magazines" App and the "Mijn Magazines" online kiosk in the second half of the year. Various payment formulas are offered to access all magazines in a hybrid or fully digital way. The unique and innovative "family subscription" formula was successfully launched and well appreciated by readers.

Gross margin increased from 82.4% last year to 84.5% this year, partly due to increased readership and lower paper prices. For 2022, we expect an opposite movement in paper prices.

EBITDA finished at € 41.0 million vs. € 19.5 million last year, or a double-digit 13.6% of revenue compared to 7.6% last year. In line with IFRS regulations, the group recorded a one-off capital gain of € 5.8 million following the full acquisition of the above-mentioned joint ventures. Excluding this one-off effect, we see an 80% increase in EBITDA vs. coronavirus year 2020, but on top of that an increase of 53% vs. the € 23.0 million EBITDA from 2019.

Joint Venture Mediafin (De Tijd/L'Echo) also realised a substantial increase in revenue to € 73.7 million, an increase in EBITDA to € 17.5 million, and net result increased to € 10.8 million. These figures are substantially higher than those of 2020 and 2019. Advertising revenue was up 23%, and the readership market continued to improve with a 9% increase compared to record year 2020. After depreciation of the brands De Tijd, L'Echo and BeReal & BePublic, the 50% net result, which is recognised in Roularta's EBITDA, amounts to € 3.7 million vs. € 1.0 million in 2020 and €1.3 million in 2019. Mediafin paid a dividend of € 5.3 million to Roularta this year, while there was no dividend distribution last year.

In total, € 36.7 million EBITDA was realised by the fully consolidated companies vs. €17.4 million last year and

  • 20.5 million in 2019; € 4.2 million by associates and joint ventures (their result via movements in equity) vs.
  • 2.1 million last year and € 2.5 million in 2019.
  • Year-over-year

Depreciation and amortisation increased in 2021 mainly due to the aforementioned acquisitions and the establishment of the entity Immovlan BV. As a result, total depreciation (including tangible fixed assets) was

  • 16.6 million in 2021 or € 3.7 million higher than in 2020. The 'Share in the result of associates and joint ventures' also includes a further € 2.0 million in depreciation of brands and customer relationships. In addition, an impairment loss of € 7.6 million was recorded on a number of the group's brands that are suffering from the ongoing impact of the coronavirus. Thanks to the strong EBITDA and despite higher depreciation, EBIT finished at € 12.8 million vs. € 6.1 million last year.

Taxes (+€ 3.5 million) included in 2021 a deferred tax revenue of € 4.7 million, mainly related to temporary differences in the establishment of Immovlan BV and outstanding tax debts.

The net result finished at € 16.0 million. This represents an absolute increase of € 10.2 million YOY.

Roularta maintained a strong balance sheet at the end of the year, even after paying a dividend of € 11.7 million and after acquiring 100% the remaining 50% share of Bayard Presse in the Belgian, Dutch and

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German joint ventures. The cash position amounted to almost € 107 million vs. € 91 million at the end of 2020, thanks to a strong operating gross cash flow of € 40.0 million vs. € 16.7 million last year.

Publication of the door-to-door title De Streekkrant was discontinued to focus on De Zondag, which also appears in all cities and municipalities of Dutch- speaking Belgium and is distributed through bakeries and department stores that are open on Sunday. At the end of January 2022, a new lifestyle magazine De Zondag Magazine was launched, which was also distributed with De Zondag.

Roularta also invested heavily in innovations such as new technology for the new websites, data platforms, the renewed 'Mijn Magazines' app, a new editorial system and the state-of-the-art equipment of the Roularta Printing print shop. Roularta remains open to strategically meaningful acquisitions that contribute positively to the growth and results of the group.

The Board of Directors will propose to the General Meeting that a gross dividend of € 1.00 per share be paid out for the full year 2021, the same as the previous financial year.

Roularta in 10 key points

  1. Roularta posts a record result in 2021 with growth in all areas: €3.00 EBITDA per share (excluding one-off capital gains on JVs). Roularta will pay a gross dividend of €1.00 per annum from now on, making it one of the best dividend yields on the Belgian market.
  2. Roularta is debt-free: the cash position amounts to €107 million and Roularta also has 1.4 million of its own shares that can be put on the market in due course to increase the free float.
  3. Roularta has a large reserve of tax loss carry forwards. For the time being, only € 5.5 million deferred taxes are booked, taking into account the results of the next five years.
  4. Roularta has a hypermodern printing shop that serves all major media companies in the Benelux and surroundings.
  5. Mediafin (50% Roularta) generates €8.7 million EBITDA and more than €5 million dividend for Roularta although after IFRS rules only €3.7 million is recognised in P&L.
  6. Roularta owns powerful digital tools, such as the digital kiosk, the app and websites "My Magazines", with high quality subscriptions accessible to the whole family.
  7. Roularta is a major player on the Dutch market, through the recent acquisition of 20 magazines including EW, the Dutch Knack.
  8. The reader-consumers and the external customers of the printing works provide almost 2/3 of the income. "De Zondag", digital advertising and "Mijn Stad TV" provide an ideal formula for local advertising throughout Flanders.
  9. Roularta assumes that within the framework of the repositioning of its portfolio, the most important write-downs have been made.
  10. Roularta is a trendsetter in sustainability in the media sector.

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1. KEY FINANCIAL FIGURES FOR THE FINANCIAL YEAR

1.1 Consolidated key fgures

in thousands of euros

31/12/2021

31/12/2020

Trend

Trend (%)

INCOME STATEMENT

Sales

300,205

256,269

43,936

17.1%

Adjusted sales (1)

273,492

256,269

17,223

6.7%

EBITDA (2)

40,975

19,467

21,508

110.5%

EBITDA - margin

13.6%

7.6%

EBIT (3)

12,754

6,056

6,698

110.6%

EBIT - margin

4.2%

2.4%

Net finance costs

-183

-276

93

33.7%

Income taxes

3,465

8

3,457

43212.5%

Net result

16,036

5,789

10,247

177.0%

Attributable to minority interests

-557

-195

-362

-185.6%

Attributable to holders of RMG

16,593

5,984

10,609

177.3%

Net result attributable to equity holders of RMG - margin

5.5%

2.3%

Number of full time equivalent employees at closing date (4)

1,243

1,182

61

5.2%

  1. Adjusted revenue is the revenue comparable to last year, i.e. excluding changes in the consolidation scope.
  2. EBITDA is equal to EBIT plus depreciation, downward value adjustments and provisions.
  3. EBIT is equal to operating income, including the share in the result of associates and joint ventures.
  4. Excluding joint ventures (Mediafin)

Consolidated revenue for 2021 increased 17.1%, from € 256.3 to € 300.2 million. If we disregard the change in the scope of consolidation due to acquisitions and establishment of the new entity Immovlan BV, the absolute revenue increase year on year was € 17.2 million or an increase of 6.7% compared to the previous year.

The increase was visible in all markets. The advertising market was up by 21.7% compared to 2020, but total revenue is not yet at pre-Covid levels due to the semi-lockdowns of the first half of the year that impacted complimentary local media. Subscription revenue, after the historic increase of 10.3% in 2020, were up 22.6% in 2021, or 3.7% excluding acquisitions. Newsstand sales were up slightly (1.6% YOY), but were down 12.7% without the newly acquired companies. Miscellaneous revenue increased by 19.8% despite the fact that not all reader trips and events were able to take place. Finally, printing for third parties also increased again (+4.1% versus -18.2% last year).

The increase is visible in all business units and most pronounced in Local Media (+18.4%), active in the local advertising market, which was heavily affected by Covid-19 in 2020. Kanaal Z posted a record 47.0% YOY gain.

EBITDA increased from € 19.5 million to € 41.0 million in 2021. By way of comparison, EBITDA in pre-coronavirus year 2019 was € 23.0 million. The EBITDA margin increased from 7.6% in 2020 to 13.6% in 2021. The EBITDA of the fully consolidated entities amounted to € 36.7 million compared to € 17.4 last year and € 20.5 million in 2019; the share in the net result of joint ventures amounted to € 4.2 million compared to € 2.1 million in 2020 and € 2.5 million in 2019.

Strongly increased revenue, without a proportional increase in costs, is the main reason for the increased EBITDA. In addition, in accordance with IFRS regulations, a capital gain of € 5.8 million was recognised on the historical participation that the group had in the recently fully acquired joint ventures. In the 100% acquired JVs and Immovlan, a total of € 4.8 million EBITDA was generated vs. € 1.3 million last year (for the JVs, the equity method was used for EBITDA).

EBIT evolved from € 6.1 million in 2020 to € 12.8 million in 2020, or 4.2% of revenue versus 2.4% last year. This increase is only partly in line with the EBITDA increase, because in addition to higher provisions, among others for restructuring, there are also increased depreciation following the establishment of the new entity Immovlan and the

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recently acquired joint ventures. In addition, on 30 June 2021, an impairment loss of € 7.6 million was booked on a number of the group's brands (Sterck, Flair, Le Vif/L'Express). The event sector, in which Sterck is active, underwent several shutdown waves due to the coronavirus. Flair, with significant reliance on outdoor activities via coupon books in its newsstand sales, was also significantly impacted by the coronavirus. At Le Vif, revenue from the readership market increased above 2020 levels, but the impact of the coronavirus on the sale of advertising was greater.

Net financial expenses were limited in 2021 (-€ 0.2 million) since the group had no outstanding financial debts.

Taxes in 2021 (€ 3.5 million) included current tax expenses of € 1.3 million and deferred tax revenue of € 4.7 million. Current tax expenses are part prepaid and part estimated taxes, of which approximately half in Belgium and half in the Netherlands. Deferred tax revenue is mainly 1/ a temporary difference following the establishment of the entity Immovlan BV whereby RMG sold its customer portfolio with a capital gain of € 8.3 million or € 2.1 million deferred tax revenue; 2/ a deferred tax liability of € 1.6 million that was definitively cancelled due to the mergers of the entities Senior Publications GmbH and Belgomedia SA and later Belgomedia SA with RMG. In 2021, deferred tax assets of € 0.3 million were recognised as a result of a higher recovery of tax losses carried forward by the Plus Magazine brand.

The amount of -€ 0.6 million minority interest in 2021 is mainly due to Immovlan, a classified activity with a positive EBITDA but high depreciation of the brand and customer portfolio resulting in a negative result. The losses in 2020 (-€ 0.2 million) came mainly from the Company Open Door Day activity at Studio Aperi Negotium NV and will be eliminated in 2021.

The net result allocable to RMG shareholders thus amounts to € 16.6 million or € 1.42 per share.

Consolidated key figures per share (in euros)

31/12/2021

31/12/2020

Trend Trend (%)

EBITDA

3.50

1.57

1.93

122.7%

EBIT

1.09

0.49

0.60

122.8%

Net result attributable to equity holders of RMG

1.42

0.48

0.93

193.4%

Net result attributable to equity holders of RMG after dilution

1.41

0.48

0.93

193.2%

Weighted average number of shares

11,719,515

12,399,598

-680,083

-5.5%

Weighted average number of shares after dilution

11,736,202

12,409,631

-673,429

-5.4%

2. DISCUSSION OF GROUP SEGMENT RESULTS

RMG's two segments are Media Brands and Printing Services. The Media Brands segment refers to all brands that are marketed by RMG and its participations. The Printing Services segment refers to premedia and print shop activities for in-house brands and external customers.

2.1 Media Brands

in thousands of euros

31/12/2021

31/12/2020

Trend

Trend (%)

INCOME STATEMENT

Sales

270,164

225,559

44,605

19.8%

Adjusted sales (1)

240,828

225,559

15,269

6.8%

Gross margin

217,576

179,428

38,148

21.3%

Gross margin on sales

80.5%

79.5%

  1. Adjusted revenue is the revenue comparable to last year, i.e. excluding changes in the scope of consolidation.

Revenue from the Media Brands segment increased by 19.8% or € 44.6 million to € 270.2 million.

Advertising revenue increased by 21.7% compared to 2020. Printed advertising revenue from the complimentary magazines increased by 6.0%. Advertising revenue from the magazines decreased by 25.2% and that from the pay- to-read newspapers by 11.1%. Of all advertising revenue, online publicity gained the most in importance (+40.5%).

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NV Roularta Media Group published this content on 08 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2022 06:50:02 UTC.