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Social Responsibility and Sustainability Report 2019 Social Responsibility and Sustainability Report 2019

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Social Responsibility and Sustainability Report 2019 Social Responsibility and Sustainability Report 2019 Social Responsibility and Sustainability Report 2019 Social Responsibility and Sustainability Report 2019 Dear Friends: PRISA has moved in a positive direction over the course of fiscal year 2018, in terms of both economic-financial and operational parameters as well as with regard to the strategic reorientation and refocusing of our businesses, as our Chief Executive Officer explains below. The year has also seen improvements to our corporate governance, and here, first of all, I would like to pay tribute to the per- son who served as our Chairman over the past year, Manuel Polanco. Our Board of Directors and its committees have been extremely active over the year, and we have been diligent in adopting their decisions. We believe the results have been positive, as you too will see in the wide-ranging information made public by the Company on this matter. We still have some way to go and we will forge ahead with the same determination as before. Our goal is to achieve the very best governance standards. We don’t do this merely to formally comply with regulatory frameworks or recommendations of best practice – though laudable in itself – but because of our conviction that we can thereby ensure that the Board best fulfills its central mission: to enable PRISA to pursue an ambitious business project, one that has great future potential and is that sustainable over time; and one that can attract, motivate and retain the talent necessary to make this a reality. Javier Monzón PRISA has enormous potential to generate value for its shareholders, for its professionals Chairman of PRISA and for all those we serve with our activity: educational communities, students and their «Our goal is to achieve families, readers and listeners, promoters and protagonists of cultural and social change the very best governance and, more broadly speaking, the general public and the societies where we operate. standards… that will The current processes of technological change and digital transformation and new, enable PRISA to pursue emerging economic models and social relations all directly affect our activities, and we an ambitious business need to anticipate any such changes and to evolve accordingly. We are aware that we project, one that has great must do so in a highly complex environment – one not only of great challenges but also future potential and is that of great opportunities. We do not merely seek to adapt to these processes; we aim sustainable over time. to be among the leading companies that define and configure them. This will allow us » to make firm, future-proof commitments and will enable us to quickly and thoroughly adopt all necessary changes. A financially sound company, one that’s profitable, that’s capable of growing continuously and scaling up its business models is the prerequisite if we are to realize that ambition. This is our primary commitment – and one which we will continue prioritize above all. Kind regards, Javier Monzón Chairman of the Board of Directors 2 Index 1. PRISA, a global group 2. Sustainability at PRISA 3. Appendix Dear Friends 2018 was a pivotal year for PRISA. Over the period of just one year, the Group has completed the process that aimed to significantly reduce its debt, has managed to stabilize its capital structure and has been able to focus on the priorities of its businesses. PRISA now has a net debt of 929 million euros and can boast businesses that performed positively last year, businesses that are now generating EBITDA in excess of 250 million euros. These are figures that allow us to face the future from a reasonably stable base. The aforementioned achievements have much to do with the restructuring we undertook at the beginning of the year. This saw the creation of a new management team with extensive experience, a team that has focused on profitable growth, on the improvement of efficiencies across the Group as a whole, on deleveraging, on the generation of cash flow and, as a consequence of all this, on the creation of value for the shareholder. Once again this year, I’d like to express our aim to renew PRISA’s ongoing commitment to the United Nations Global Com- pact. PRISA has formed part of the Executive Committee of the Compact’s Spanish Network since 2016, from where we can better promote the Ten Principles of the Global Compact in the areas of human rights, labor, environment and anti-corruption «Now that the Group is on Manuel Mirat Now that the Group is on a firm financial footing, now that the company has set its a firm financial footing, now CEO sights on a new direction, now that we have implemented efficiency measures, PRISA that the company has set is ready to grow. How? By starting from the position of undisputed leadership enjoyed its sights on a new direction, by its key assets and brands and by taking advantage of the favorable outlook for now that the Group has each of its businesses in order to maximize value. implemented efficiency Digital growth and development in Latin America are, without a doubt, the key levers measures, PRISA is now to developing the full potential of the Group’s assets and to reinforcing and further ready to grow. developing what is already a major transversal global project focused on education, » entertainment and general-interest, sports and business news. Our presence in 24 countries, the lead enjoyed by our brands, the influence of our media and the quality of our human capital provide us with the competitive advantage necessary to continue growing, to increase profitability and to generate value – all while taking advantage of the opportunities that arise from the world around us and from digital development. In short, the commitment to growth shared by all our businesses (as shown by the recent purchase of 25% of Santillana) coupled with our commitment to ambition and the utmost rigor in management will ensure greater profitability that, together with a more efficient capital structure, will allow us to create ever greater value. Kind regards, Manuel Mirat CEO 3 Social Responsibility and Sustainability Report 2019 1 PRISA, a global group 8 PRISA a global group 12 Mission, vision and values 13 Year in review (chief milestones) 19 Business areas 1 19 Santillana 23 PRISA Noticias 27 PRISA Radio 29 Media Capital 30 Main figures 4 Index 0 4 Index 1. PRISA, a global group 2. Sustainability at PRISA 3. Appendix 3 Appendix 130 Application and scope of this report 133 Correlation of indicators with GRI (SRS) guidelines and UN Global Compact 2 144 Contact information 3 2 Sustainability at PRISA 42 Introduction 43 Dialogue and communication with our stakeholders 44 Materiality analysis 46 Our sustainability strategy: 48 Creation and distribution of content 56 Responsible management 56 of our professionals 64 of our users 65 of digital transformation 69 of communication 70 of our suppliers 73 of the environment 78 Corporate governance 86 Compliance and risk management 90 Shareholders and investors 93 Social, cultural and environmental action 5 Social Responsibility and Sustainability Report 2019 6 Index 1. PRISA, a global group 2. Sustainability at PRISA 3. Appendix 1 PRISA, a global group 7 Social Responsibility and Sustainability Report 2019 PRISA, A GLOBAL GROUP Argentina Bolivia PRESENT IN Brazil 24 COUNTRIES Chile PRISA is the world’s leading Spanish and Portuguese-language Colombia media group in the creation and distribution of content in Costa Rica the fields of culture, education, news and information, and Dominican entertainment. Republic Present in 24 countries, PRISA Ecuador PRISA is one of the Spanish- reaches millions of people through Egypt « its global brands El País, LOS40, speaking world’s largest media El Salvador Santillana, W Radio and As. As A GLOBAL MARKET groups and is at the forefront of market leader in press, TV, both France communications and education OF 700 spoken-word and music radio, and Guatemala companies.» education, it is one of the Spanish- MILLION PEOPLE Honduras speaking world’s largest media groups thanks to its high-quality Mexico content and its eagerness to embrace the digital economy through the connectiv- Nicaragua ity and innovation of its products and services. Its presence in Brazil and Portugal, Panama and among the growing Hispanic community in the US, opens up a global market of 700 million people. Paraguay Peru With 152 million unique browsers* worldwide, PRISA is at the forefront of commu- nications and media companies, and has a solid strategy of content creation and Portugal 152 MILLION distribution, offering products and services adapted to users’ changing consumer Puerto Rico habits through a wide range of formats, channels and platforms. UNIQUE BROWSERS Spain Uruguay USA Venezuela * Source: Adobe Omniture + Netscope, yearly average January - December 2018 8 Index 1. PRISA, a global group 2. Sustainability at PRISA 3. Appendix SPAIN FRANCE PORTUGAL USA EGYPT MEXICO DOMINICAN REPUBLIC GUATEMALA PUERTO RICO HONDURAS EL SALVADOR PANAMÁ NICARAGUA VENEZUELA COSTA RICA COLOMBIA BRAZIL ECUADOR PERU BOLIVIA PARAGUAY ARGENTINA CHILE URUGUAY 9 Social Responsibility and Sustainability Report 2019 MISSION, VISION AND VALUES A commitment to society is at the very core of PRISA. From the very beginning, the founders and promoters of El País BASIC FOUNDATIONAL PRINCIPLES have been committed to Spanish society and to defending and expanding democratic liberties. All too aware of this responsibility, this commitment remains as strong and vital as Independence and rigor in our role as informers, ever and is shared by all the Group’s companies in both Spain educators and communicators. and Ibero-America. It is a vision shared by all our professionals and is evident in the work and in the day-to-day operations of Responsible, efficient and sustainable manage- all those who work for PRISA.
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