ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ASPIRATION STATEMENT

To be the leading regional corporation with global reach serving as the most credible and authoritative source of news, information and entertainment in and of the Caribbean.

To take the leadership role in the development of the media industry by:

• Zealously guarding and advocating the Freedom of the Press/Media.

• Observing and promoting the highest professional standards.

• Providing training and development opportunities for media personnel.

To be an exemplary employer.

To make sound investments in diverse businesses that will provide for the leveraging of the Group’s assets and competencies and the creation of shareholder value.

To take a leadership role in corporate social responsibility initiatives in the region. TABLE OF CONTENTS

Corporate Information ...... Page 3

The Brands ...... Page 4

Chairman’s Statement ...... Page 6

Group Chief Executive Ofcer’s Statement ...... Page 8

OCM CSR Initiatives 2018 ...... Page 10

Board of Directors ...... Page 14

Corporate Governance ...... Page 17

Organisational Chart and Executive Team ...... Page 19

Financial Performance Summary - Graphs ...... Page 21

Directors’ Report ...... Page 22

Directors’ and Senior Ofcers’ Interests and Major Shareholders ...... Page 23

Statement of Management’s Responsibilities ...... Page 26

Independent Auditor’s Report ...... Page 27

Consolidated Balance Sheet ...... Page 36

Consolidated Statement of Proft or Loss ...... Page 38

Consolidated Statement of Other Comprehensive Income ...... Page 39

Consolidated Statement of Changes in Equity ...... Page 40

Consolidated Statement of Cash Flows ...... Page 41

Notes to the Consolidated Financial Statements ...... Page 42

Notice of Meeting ...... Page 104

Proxy Form ...... Page 105

DESIGN, LAYOUT AND PHOTOGRAPHY www.omgtt.com | PRINTING scripj.com

Page 2 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 CORPORATE INFORMATION

HEAD OFFICE BOARD OF DIRECTORS Express House 35 Independence Square, Port of Spain CHAIRMAN Trinidad and Tobago Tele: 868-623-1711-8, 868-627-8806 Mr. Faarees Hosein Fax: 868-627-2721

SECRETARY DIRECTORS Karlene Ng Tang 35 Independence Square, Port of Spain Mrs. Dawn Thomas Trinidad and Tobago Dr. Grenville Phillips REGISTRAR The Trinidad and Tobago Central Mr. Michael Carballo Securities Depository Limited 10th Floor, Nicholas Towers, Mr. Peter G. Symmonds Q.C. 63-65 Independence Square Port of Spain, Trinidad and Tobago Mr. Anthony Shaw

ATTORNEYS-AT-LAW Mr. Gregory Thomson Juris Chambers 39 Richmond Street Mr. Douglas Wilson Port of Spain Trinidad and Tobago Mrs. Renee Kowlessar

Ezra Alleyne Attorney-at-Law Suite 202, Kays House Roebuck Street, Bridgetown, Barbados

C. Anthony Audain Aâstra Law, Aâstra House St. Matthias Road Christ Church, Barbados

AUDITORS PricewaterhouseCoopers 11-13, Victoria Avenue, Port of Spain, Trinidad and Tobago

NO. OF EMPLOYEES 724

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 3 THE BRANDS

PRINT

BROADCAST - TELEVISION

CABLE & BROADBAND

Page 4 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 BROADCAST - RADIO

RENEWABLE ENERGY

VIDEO PRODUCTION, PRINTING & DESIGN

DIGITAL MEDIA DISTRIBUTION

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 5 MR. FAAREES HOSEIN CHAIRMAN

Page 6 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 CHAIRMAN’S STATEMENT

The Group’s operating results were im- before the end of the third quarter of following this re-election and Mrs. Dawn pacted by the economic challenges and 2019 and will contribute to the Group’s Thomas, Mr. Anthony Shaw and Mr. transformation occurring in two of our performance. Douglas Wilson for terms not exceeding major markets (Trinidad and Barbados). the third Annual Meeting following this We acknowledge the realities of the re-election. The Group reported revenues of changing market and the Group TT$394M / US$58M which represents continues to adopt strategies to take We wish to thank our loyal readers, a decline of 11% compared to prior advantage of all the opportunities that viewers, listeners and advertisers for year while our Net Proft Before Tax will arise. their continued support and to also and Impairment of TT$50M / US$7.4M express our appreciation to the Group’s declined by 37%. Notwithstanding our economic management and staf who continue to constraints, the Group continues rise to the market challenges and strive In 2018, the Group continued its to support a number of regional to deliver value to all our stakeholders. restructuring eforts to better position community events annually. In itself to increase efciencies and Barbados, the community events Your Directors have approved a fnal seize opportunities presented by the include the Nation Annual Funathlon dividend of 40 cents per share bringing growing digital landscape. As a result and ‘Youth in athletics’, while in the total dividend declared for the year of this strategic thrust, the Group’s Trinidad and Tobago, the National Word to 60 cents. performance took into account Championship and the TV6 Community substantial restructuring costs. T10 Cricket League are all eagerly The Annual Meeting has been scheduled anticipated. for Thursday 13th June 2019 at 10:00am We remain cautiously optimistic that in at Express House, 35 Independence Trinidad and Tobago we will see signs This year the Harold Hoyte Scholarship Square, Port of Spain. of recovery, however the challenges in for Journalism was awarded to Kimiko Barbados continue. Scott (Trinidad and Tobago), who is now the 3rd individual to beneft from this Encouragingly, our Eastern Caribbean scholarship fund. media assets are now operating proftably and the non-media At the upcoming Annual Meeting, Faarees Hosein investments are making a useful your Directors take great pleasure Chairman contribution to the Group. In addition in recommending the re-election of One Caribbean Media Limited to these, our “Flexographic” plant is Dr. Grenville Phillips for a term not scheduled to be fully commissioned exceeding the frst Annual Meeting

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 7 MRS. DAWN THOMAS GROUP CHIEF EXECUTIVE OFFICER

Page 8 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 CEO’S STATEMENT 2018

The Group’s operating performance organisation to ensure future growth. Corporate Social was impacted by both the economic Signifcant progress has been made challenges faced in the region and with the restructuring process and Responsibility costs associated with eforts to implementation of a ‘Shared Services’ The Group has remained committed to restructure the organisation for greater model as we strategically pursue a much contributing to building the regional efciency and to allow it to be better more efcient organisation structure. community as we believe that our positioned to take advantage of Additionally, dedicated resources and success is tied to the well-being of the emerging opportunities. The Barbados focus have been given to the business communities that we operate within. subsidiaries were particularly afected segments/areas identifed for future by adverse market developments which Our new subsidiary, Green Dot Limited growth which include: resulted in a decline in advertising held its First Annual Fair and Mini Expo revenues and a drastic slowdown of the 1. Digital and Social Media platforms at its new Headquarters in Cunupia. Renewable Energy business. The Expo saw a wide range of services 2. Development and Monetisation of on display from literacy improvement Revenues across the Group of $394M local content to home security in keeping with the were 11% below prior year while Net 3. Technology – Broadband services, Company’s mantra ‘Improving and Proft before Tax and Impairment Software and App development, Simplifying lives’ of $50M was 37% below prior year. Digital payment platform. The Group’s operating performance Other initiatives led by the Group across included signifcant severance costs 4. Manufacturing – Packaging the region in 2018 included: associated with staf cuts in Barbados material • OCM Bocas award for literature and other one-of costs. The Strategic thrusts associated (Regional) Despite the serious difculties faced with realising enhanced operational • National Word Championship by the Renewable Energy business in efciencies and dedicated focus on high (Trinidad) Barbados, the Group’s ICT (Information potential growth areas are anticipated and Communication Technology) to auger well for the future success of • Express Children Fund/Taj Christmas investments were able to make a the Group. joy gift distribution (Trinidad) positive proft contribution before • Nation Annual Funathlon (Barbados) tax of $13.5M. The investment in Real People Development Estate did have a set back with the loss • Nation’s ‘Youth in athletics’ During the year, the Group continued (Barbados) of a tenant in one of the investment to focus on developing our people in a properties but continues to give us a wide range of areas. We recognise the • Home Makeover- (Grenada) reasonable return. Additionally, steady importance of having a highly skilled • Participation in School Career fairs progress was made during the year in and competent team that is not only the set-up of our ‘Flexographic’ plant capable of delivering on their current Conclusion and the preliminary response from the performance objectives but can assist in targeted customer market segment has crafting the strategies for future success. 2018 was another tough year but the been very encouraging. It is expected management was able to progress the that this Plant will be fully commissioned Across the Group, a diverse range of Strategic Plan and the Group is now and operational before the end of Q3 training was conducted in Journalism, better poised to deliver on stakeholder 2019. The Group’s fnancial performance Finance, Sexual Harassment and Health expectations. Management’s strong however would have included the start- and Safety. focus on improving operational up costs of this Plant. Our commitment to people efciencies across the Group and high development will continue along potential growth segments is expected Path to Growth with a concerted efort to execute to yield positive results. In light of the evolving media more teambuilding activities aimed at landscape and the state of the regional improving employee engagement and economies, the management has morale. recognised the need to transform the Mrs. Dawn Thomas Group Chief Executive Ofcer

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 9 CORPORATE SOCIAL RESPONSIBILITY As a good corporate citizen, winner of the 2018 OCM Bocas OCM takes Corporate Social Prize for Caribbean Literature. Responsibility (CSR) very seriously. Rahim, who hails from Trinidad OCM believes that being part of and Tobago, is a former liberal arts the community and giving back, is lecturer at the St Augustine Campus not only an expression of who we at The University of the West Indies, are, but it builds stakeholder and received the prestigious prize shareholder value. for her collection of linked short stories, entitled ‘Curfew Chronicles’. In 2018, the Group played a major role in a number of initiatives and Jamaican born Shara McCallum, projects in support of its CSR goals. was the joint winner, for her book of poems entitled ‘Madwoman’. The Annual BOCAS Drawing on personal and collective memory, McCallum’s poems are Literary Festival an exploration of womanhood, OCM remains the prize sponsor of asking how perspectives and the Annual BOCAS Literary Festival. identities evolve over time, in diferent landscapes, in response to Jennifer Rahim, was named the changing desires and traumas.

THE CCN GROUP THE EXPRESS CHILDREN’S FUND Through the kind donations and McKenzie retired. Dr. McKenzie was sponsorship from corporate Trinidad and instrumental in providing guidance to individuals, the Express Children’s Fund the Board of Directors and believed in the had yet another successful Annual Dinner importance of providing education for all and Dance in October 2018. Guests were children. entertained by Imij & Company and Nigel Rojas and they enjoyed a scrumptious One Caribbean Media Limited is extremely dinner by Hilton Hotel. honoured to have had such a gentleman to lead such an important charity and we After serving as Chairman to the Board wish him all the best on his retirement. of the ECF for over 25 years, Dr. Allan

In 2018 the Express Children’s Fund: • Disbursed over $150,000 in bursaries to students at primary and secondary Pictured above are Mr. Neil Bynoe, Principal, San Raphael Primary School, who received schools; the donation from Ms. Nirmala Ramsanahie, Director, Express Children’s Fund

Page 10 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 • Assisted over 300 children across seven primary schools with the replacement of uniforms, school books and equipment in areas that were devastated by the fooding which occurred in October 2018; • Supported two children with overseas medical expenses; and • Assisted 50 children with school supplies.

Distribution of Computers In October 2018, a number of schools were afected by fooding which devastated parts of east Trinidad and its environs. As a result of this, the Board of Directors, ECF took the decision to outft the San Raphael RC Primary School’s computer lab with ffteen brand new computers.

“Christmas Toy Caravan” Collaborated with TAJ 92.3FM, and participated in a “Christmas Toy Caravan”. Toys, which were donated by Brian McFarlane’s Christmas Joy: Chimes of Peace concert, were distributed to a number of children that live in Arouca, St. Helena, Caroni and Chaguanas areas. In addition, toys were also distributed to children that lived at orphanages in the Tacarigua, Sangre Grande and Chaguanas areas.

THE NATION GROUP THE NATION’S ANNUAL FUNATHLON 5K WALK & RUN – ‘GO FURTHER FOR A BETTER BARBADOS’

In 2018, the Nation Publishing partnered with Sol (Barbados) Ltd and Digicel Barbados for the staging of the 2018 edition of its Annual Nation Funathlon, 5K Walk & Run under the theme “Go Further for a better Barbados”.

The event commemorated the 30th Anniversary for The Nation Fun Walk and the 45th Anniversary of the Nation Newspapers.

The race traversed wider regions of the country’s capital, Bridgetown. The staging location and race route was selected to pay homage to the origins of the newspaper, which started operations in St. Mary’s Row, behind the St. Mary’s Anglican Church, as well as celebrate the 53rd year of Independence of Barbados.

Over the years, The Nation Fun events have raised thousands of dollars for worthy causes making a diference in Barbados. Funds raised from 2018 Funathlon were distributed to the Accident and Emergency Department of the Queen Elizabeth Hospital and the Nature Fun Ranch. The Nation Publishing donated $25,000 in total with each charity receiving $12,500 each.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 11 GREEN DOT LTD FIRST ANNUAL COMMUNITY FAIR AND MINI EXPO

In August 2018, Green Dot Limited opened its doors of their new home at 57 Bejucal Road, Cunupia, Trinidad, to loyal customers, friends and to the community of Cunupia, by hosting its frst Community Fair and Mini Expo.

Taking a holistic approach to their mantra, “Improving and Simplifying Lives” Green Dot embarked on helping citizens take control of their health, fnances, the education of their children and their safety and security.

The exhibition saw a wide range of Farina Khan receiving her services on display, from literacy prize from VL Limited to home security and included exhibits from Moms for Literacy, Dinnelle Seebalack Ferreira Optical, Cylo Vehicle receiving a hamper from Tracking, Sagicor, VL Limited, Roger Alcantara of Sagicor Genesis Restoration Centre, Trinidad and Tobago Registered Nurses Association, Happi Products Limited and Partytopia.

There were giveaways, door prizes and random draws during the event where gifts were given to patrons from all participants.

Children were also treated to balloons, ice cream and face painting which made for an exciting and fun day.

A young guest enjoying the display from Moms for Literacy booth

Page 12 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 GRENADA BROADCASTING NETWORK HOME MAKEOVER PROMOTION

The Grenada Broadcasting Network (GBN) brought Christmas cheer to about a dozen families in December 2018 through its Home Makeover Promotion, which was launched in November 2018.

The objective of the Promotion was to make at least one family happy during the Yuletide season by painting their home and providing them with a suite of furniture.

GBN’s Managing Director, Odette Campbell said that when the initiative was publicized via GBN Television and Klassic Radio, the company was inundated by requests and suggestions of families who needed assistance. “As a result of the overwhelming response from members of the public, we were forced to expand the campaign” she noted.

GBN collaborated with 15 of its corporate clients and expanded the campaign which eventually brought Christmas cheer to 5 families.

The GBN sought to ensure that the campaign touched the lives of people from rural communities, and especially elderly citizens.

They received paint, furniture, cooking gas, bottled water, hampers and other supplies.

intricacies of the media industry from representatives from CCN CAREER FAIRS Group, Trinidad Express Newspapers and CCN TV6.

Gem Radio Five Limited, saw their representatives from Hott 93.5FM participate at Fatima College’s ‘Annual Career Day’. This event is also geared to educate and inspire students in every aspect of the job opportunities available in Radio.

‘Iceman’ from The Ultimate Rejects, DJ Ana and Ultra Simmo met with students to impart their knowledge with the youngsters from an on-air point of view. Sales Manager - Rodney Sayney, Shelly Ann Ramlochan - Marketing and Promotions Assistant were also there to share all the behind the scenes workings of the radio station. Schools always invite OCM Group’s subsidiaries to participate at various Career Fairs. These events are geared to educate and inspire as well as to provide career guidance on what it takes to become a successful journalist.

In 2018, the CCN Group was a participant at the St. Joseph’s Convent ‘Career Fair’ The event saw organisations from diferent sectors ofering career guidance and insight to the students. Students were able to ask questions about the OCM Group, understand the digital media trends and receive insight into the

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 13 BOARD OF DIRECTORS

Mr. Faarees Hosein Mrs. Dawn Thomas Dr. Grenville Phillips CHAIRMAN GROUP CHIEF EXECUTIVE OFFICER

An Attorney-at-Law, Mr. Faarees Hosein Mrs. Thomas is currently the Group Chief Dr. Grenville Phillips retired as a Principal obtained his LLB at Dundee University, Executive Ofcer of One Caribbean of the Barbados and Eastern Caribbean Scotland and was called to the Bar of Media Limited (OCM). Prior to her present practices of Coopers & Lybrand and England and Wales at Lincoln’s Inn. He has appointment she served for four years as Managing Director of Colybrand Company been in private civil law practice since 1988 the Group Chief Executive Ofcer (CEO) Services Limited on the merger of the in Trinidad and Tobago and was called to of Caribbean Communications Network international frms of Coopers & Lybrand the Bars of Barbados in 1991 and Grenada Limited (CCN), which is a subsidiary of the with Price Waterhouse in 1998. He now in 1997. Mr. Hosein is also the Chairman OCM Group. practices as a private corporate and of Caribbean Communications Network fnancial consultant. Dr. Phillips served as Limited, a wholly owned subsidiary of Prior to her tenure with the OCM Group, Chairman of the Barbados National Bank One Caribbean Media Limited. she spent ffteen (15) years with the for approximately seven (7) years and as a Massy Group (formerly Neal and Massy Director of the Barbados Stock Exchange Group) and held the position of CEO from its inception. He gained his of Tracmac Engineering Limited (now doctorate from Bradford University (UK) in Massy Machinery Limited). During her 2004 and holds professional qualifcations appointment, Mrs. Thomas worked with in Chartered Secretarial, Accounting and the energy, construction, agriculture, Banking. Dr. Phillips was awarded the CBE industrial and marine sectors of the in the Queen’s New Year honour in 2000 economy. Mrs. Thomas also served as a for his contribution to accountancy and Director on the Board of Neal and Massy public service in Barbados. Energy Services Ltd. (now Massy Energy), Associated Brands Limited (Guyana) and General Finance Corporation Limited (now Massy Finance Limited).

Mrs. Thomas holds a BSc. Industrial Engineering (Hons) Degree from the University of The West Indies (UWI). She is a member of The Association of Professional Engineers of Trinidad and Tobago (A.P.E.T.T).

Page 14 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Mr. Michael Carballo Mr. Peter G. Symmonds Q.C. Mr. Anthony Shaw EXECUTIVE

Mr. Michael Carballo is a Chartered Mr. Peter G. Symmonds Q.C. is an Attorney- Mr. Anthony Shaw has a career that spans Accountant and Independent Financial at-Law who has been in private practice for over 31 years in the fnance industry, at Consultant to many companies in Trinidad 38 years. both operational and executive levels. He and Tobago and the Region. possesses a proven track record of success He holds a Bachelor of Laws (LLB) from and has a well-rounded background He has held senior positions at a major the University of the West Indies and a with a strong strategic, fnancial and Professional Services Firm, prior to joining Masters of Laws (LLM) from the University sales orientation. Mr. Shaw was the Chief the Angostua Group of Companies of London and is also a Justice of the Peace Executive Ofcer of Signia Financial in 1991, where he held various senior in Barbados. Group Inc. and played a pivotal role in Financial and Management positions, the development and growth of that including that of Executive Director and Mr. Symmonds serves as a Director on the organization. Company Secretary. Mr. Carballo was Board of Massy United Insurance Limited. eventually seconded to C.L Financial He was a Board Member of BS&T for 6 years He is the holder of BComm, Accounting Limited in 2008, the parent of Angostura prior to its acquisition by Massy Holdings and Management Information Systems, Holdings Limited, where he served as Limited. He is also a Director of the Rum McGill University and a member of Group Finance Director until 2010. Refnery of Mount Gay Limited, a privately the Canadian Institute of Chartered held company, and a Trustee of The Maria Accountants. He also has a deep Mr. Carballo is member of the Institute of Holder Memorial Trust, and The Brewster knowledge of the Nation Corporation Chartered Accountants of Trinidad and Trust, Registered Barbados Charities. having served eight (8) years as a Director Tobago and a Fellow of the Association of in the Nation Group. Chartered Certifed Accountants.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 15 BOARD OF DIRECTORS

Mr. Gregory Thomson Mr. Douglas Wilson Mrs. Renee Kowlessar EXECUTIVE Mrs. Renee Kowlessar’s experience spans Mr. Gregory Thomson is a retired banker Mr. Douglas Wilson who joined the many years in public accounting in with over 40 years’ experience in Banking, Trinidad Express Newspapers in 2014, has Toronto and Barbados, and in fnance and Investments and Finance. He was the Dep- over 20 years’ experience in the newspaper management in both the onshore and uty Managing Director of Republic Bank industry. He earlier held positions in ofshore banking sectors in Barbados. Limited prior to his retirement in 2012. consulting, banking and government in the feld of software development before She holds a Bachelor of Commerce Degree Mr. Thomson holds a BSc in Mathematics a focus in Operations Management. in Accounting from McGill University in and Physics from The University of the Montreal Canada, a Chartered Accountant West Indies and a MBA from The Universi- Douglas is the holder of a B.Sc. in designation from the Institute of ty of Western Ontario, Canada. He is pres- Mathematics and Computer Science from Chartered Accountants of Ontario and is ently on the Boards of Republic Financial the University of the West Indies. He holds also a Fellow of the Institute of Chartered Holdings Ltd and Republic Bank Limited. an advanced diploma in Accounting and Accountants of Barbados. Finance C.DipAF and an MBA from UWI – Institute of Business. Mrs. Kowlessar has completed the Institute of Chartered Secretaries and He also served as a Director of ANSA Administrators of Canada Director Polymer Ltd. Education and Accreditation Program.

She has served as a Director of Goddard Enterprises Ltd and Director and Audit Committee Chair of First Citizens Bank (Barbados) Limited. She currently serves on a number of Boards in the fnancial services sector, as well as sits as a Trustee of The Cherry Tree Trust, a charitable organization in Barbados.

Page 16 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 CORPORATE GOVERNANCE

One Caribbean Media Limited is committed to the maintenance of strong corporate governance practices that allocate rights and responsibilities among the Company’s stockholders, Board of Directors and management in a manner that enhances shareholder value. Accordingly, our corporate governance practices are designed not just to satisfy regulatory requirements, but to provide for the efective oversight and management of the Company.

OCM maintains the following standing committees of the Board of Directors:

GOVERNANCE COMMITTEE The primary purpose of the Governance Committee is to ensure that the Company’s policies and practices conform to statutory requirements and best practice. The Committee also oversees compensation and recruitment of senior executives.

Name Position Present Excused Absent Dr. Grenville Phillips Chairman 1 0 0 Mr. Peter Symmonds Member 1 0 0 Mr. Faarees Hosein Ex Ofcio Member 1 0 0 Mrs. Dawn Thomas Ex Ofcio Member 1 0 0 No. of meetings held in 2018 - 1

STRATEGIC INVESTMENT COMMITTEE The primary purpose of the Strategic Committee is to review investment opportunities.

Name Position Mr. Michael Carballo Chairman Mr. Faarees Hosein Ex Ofcio Member Mr. Harold Hoyte Member Dr. Grenville Phillips Member Mrs. Dawn Thomas Ex Ofcio Member No meetings were held in 2018

AUDIT COMMITTEE The primary purpose of the Audit Committee is to provide oversight on the integrity of the Company’s fnancial reporting and the internal audit function.

Name Position Present Excused Absent Mr. Michael Carballo Chairman 3 0 0 Dr. Grenville Phillips Member 3 0 0 Mr. Peter Symmonds Member 3 0 0 No. of meetings held in 2018 - 3

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 17 CORPORATE GOVERNANCE

BOARD MEETINGS The following table indicates the number of Board Meetings held and attendance of Directors during the year:

Name Position Present Excused Absent Mr. Faarees Hosein Chairman 5 0 0 Mrs. Dawn Thomas Director / Group Chief Executive Ofcer 5 0 0 Mr. Michael Carballo Director 5 0 0 Mr. Harold Hoyte * Director 0 2 0 Mrs. Renee Kowlessar ** Director 3 0 0 Dr. Grenville Phillips Director 5 0 0 Mr. Anthony Shaw Director 5 0 0 Mr. Peter Symmonds Director 5 0 0 Mr. Gregory Thomson Director 5 0 0 Mr. Douglas Wilson Director 5 0 0 No. of meetings held in 2018 – 5 *Mr. Harold Hoyte retired in June 2018 **Mrs. Renee Kowlessar was appointed in June 2018

Page 18 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ORGANISATIONAL CHART

OCM BOARD OF DIRECTORS

OCM GROUP CEO

OCM MD/GM OCM OCM NATION CEO Group Internal Trinidad Express Chief Financial Group Executive Auditor Ofcer/Company Corporate Secretary Services NATION COO/Financial Controller

EXECUTIVE TEAM

Mrs. Dawn Thomas Mr. Anthony Shaw Mr. Douglas Wilson GROUP CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR/GENERAL ONE CARIBBEAN MEDIA LTD THE NATION CORPORATION MANAGER, TRINIDAD EXPRESS NEWSPAPERS

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 19 EXECUTIVE TEAM CONTINUED

Ms. Karlene Ng Tang Mr. Gregory Camejo Mr. Noel Wood CHIEF FINANCIAL OFFICER/ GROUP EXECUTIVE - GROUP FINANCIAL CONTROLLER/ COMPANY SECRETARY CORPORATE SERVICES CHIEF OPERATING OFFICER ONE CARIBBEAN MEDIA LTD ONE CARIBBEAN MEDIA LTD NATION CORPORATION

Ms. Karlene Ng Tang joined Caribbean Mr. Gregory Camejo joined Caribbean Mr. Noel Wood is a chartered accountant Communications Network Limited (CCN Communications Network Limited. (CCN and a Fellow of the Institute of Group) in 1998 as the Group Financial Group) in 2010 as the Group Human Chartered Accountants of Barbados Accountant and assumed the role of Group Resources Manager and later that year (ICAB) and holds a Master of Business Financial Controller from 2009 to 2017. assumed the role of Group Corporate Administration (MBA) in Finance from Services Manager. He provides support City University, London. He is a Director In 2017 she was appointed to the position in the areas of strategy implementation, of SVG Publishers Inc. During his tenure, of Chief Financial Ofcer and Company alignment of HR policies and practices, he attended several developmental and Secretary of One Caribbean Media Limited. executive management development, achievement of non-fnancial enabling training programmes and has played a Karlene is a Fellow of the Association of goals and Group marketing and pivotal role in several projects that has Chartered Certifed Accountants with over communication, Labour/Health, Safety driven the success of the company. 24 years’ experience, including 9 years and the Environment and Information in executive management and 20 years Technology. in the media industry. Her experience includes audit, fnancial accounting Gregory holds a MSc in International and management, budgeting, treasury Finance from UWI - St. Augustine, Master management and related activities. of Business Administration (MBA) from Andrews University and a Master of Social Karlene also serves as a Director on the Sciences (M.SocSci) from the University of Board of the Express Children’s Fund. Leicester.

Page 20 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 GRAPHS

Total assets ($'000) Proft before impairment and tax ($'000)

2014 2015 2016 2017 2018

Share capital and reserves ($'000)

2014 2015 2016 2017 2018

Proft Attributable to Shareholders ($'000)

2014 2015 2016 2017 2018 Net Assets per share 11.06 12 10.63 10.58 10.77 10.08 10

8

6

4 2014 2015 2016 2017 2018

2 Earnings per share ($) 1.40 2014 1 2015 2016 2017 Revenue ($’000) 2018

1.05

0.70

0.35

2014 2015 2016 2017 2018 0.00 2014 2015 2016 2017 2018

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 21 DIRECTORS’ REPORT

The Directors submit their Report and Audited Consolidated Financial Statements for the year ended December 31st, 2018.

Financial Results

2018 2017 $’000 $’000

Proft before tax 38,155 72,469 Taxation (17,917) (20,023) Proft for the year 20,238 52,446 Other comprehensive income 2,411 11,187 22,649 63,633

Proft attributable to: - Non-controlling interest 723 4,690 - Owners of the parent 21,926 58,943 22,649 63,633

Earnings per share basic $0.31 $0.76

Earnings per share fully diluted $0.30 $0.73

The Directors have declared a fnal dividend of $0.40 per share for the year ended December 31st, 2018. An interim divi- dend of $0.20 per share was paid on September 28th, 2018 making a total dividend on each share of $0.60 (2017: $0.67).

Notes: (a) Directors 1. In accordance with the By-Laws, Mrs. Dawn Thomas retires by rotation and being eligible ofers herself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 2. In accordance with the By-Laws, Mr. Anthony Shaw retires by rotation and being eligible ofers himself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 3. In accordance with the By-Laws, Mr. Douglas Wilson retires by rotation and being eligible ofers himself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 4. In accordance with the By-Laws, Dr. Grenville Phillips retires by rotation and being over seventy fve (75) years of age ofers himself for re-election for a term not later than the close of the frst Annual Meeting of the shareholders following this re-election. (b) Auditors The Auditors, PricewaterhouseCoopers, retire and being eligible ofer themselves for re-appointment.

By Order of the Board

……………………………………….. Karlene Ng Tang Company Secretary

Page 22 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 DIRECTORS’ AND SENIOR OFFICERS’ INTERESTS AND MAJOR SHAREHOLDERS

DIRECTORS The interests of the Directors holding ofce as at December 31st, 2018 in the ordinary shares of the Company were as follows:

Direct Interest Connected Persons M. Carballo - - F. Hosein - - R. Kowlessar 900 5,826,064 G. Phillips 60,000 2,050,000 A. Shaw - - P. Symmonds 5,000 - D. Thomas 2,000 - G. Thomson - - D. Wilson - 525

There were no benefcial interests attached to any shares registered in the names of Directors in the Company’s subsidiaries, such shares being held by the Directors and nominees of the Company or its subsidiaries. At no time during or at the end of the fnancial year did any Director have any material interest in any contract or arrangement in relation to the business of the Company or any of its subsidiaries. SENIOR OFFICERS The interests of the senior ofcers holding ofce at the end of December 31st, 2018 in the ordinary shares of the Company were as follows: Direct Interest Connected Persons

D. Thomas 2,000 - A. Shaw - - K. Ng Tang - - D. Wilson - 525 N. Wood 92,007 -

SUBSTANTIAL INTERESTS/LARGEST SHAREHOLDERS The ten (10) largest shareholders in the Company as at the end of December 31st, 2018 were as follows:

NATIONAL INVESTMENT FUND HOLDING COMPANY LIMITED 15,285,917 REBYN LIMITED 5,826,064 CCN GROUP EMPLOYEES SHARE OWNERSHIP PLAN 4,627,286 REPUBLIC BANK LIMITED 3,433,207 RBC TRUST (TRINIDAD & TOBAGO) LIMITED 3,090,632 ABK INVESTMENTS INC. 2,330,000 BRENTWOOD CORPORATION 2,050,000 H H INVESTMENTS LIMITED 1,941,398 ATHLYN INVESTMENTS LIMITED 1,661,075 DR ST ELMO THOMPSON 1,615,572

OTHERS 1%

SHAREHOLDERS’ DISTRIBUTION Other includes Canada, Cayman Islands, Grenada, Guyana, Jamaica, St. Vincent, United Kingdom and United States of America. TRINIDAD 59% BARBADOS 40%

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 23 Page 24 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 25 One Caribbean Media Limited and its Subsidiaries

Statement of Management’s Responsibilities

Management is responsible for the following:

• Preparing and fairly presenting the accompanying consolidated fnancial statements of One Caribbean Media Limited and its subsidiaries (the “Group”) which comprise the consolidated balance sheet as at 31 December 2018 and the consolidated statements of proft or loss, other comprehensive income, changes in equity and cash fows for the year then ended, and a summary of signifcant accounting policies and other explanatory information;

• Ensuring that the Group keeps proper accounting records;

• Selecting appropriate accounting policies and applying them in a consistent manner;

• Implementing, monitoring and evaluating the system of internal control that assures security of the Group’s assets, detection/prevention of fraud, and the achievement of Group operational efciencies;

• Ensuring that the system of internal control operated efectively during the reporting period;

• Producing reliable fnancial reporting that comply with laws and regulations, including the Companies Act; and

• Using reasonable and prudent judgement in the determination of estimates.

In preparing these audited fnancial statements, management utilised the International Financial Reporting Standards, as issued by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Trinidad and Tobago. Where International Financial Reporting Standards presented alternative accounting treatments, management chose those considered most appropriate in the circumstances.

Nothing has come to the attention of management to indicate that the Group will not remain a going concern for the next twelve months from the reporting date; or up to the date the accompanying fnancial statements have been authorised for issue, if later. Management afrms that it has carried out its responsibilities as outlined above.

______Chief Executive Ofcer Chief Financial Ofcer

5 April 2019 5 April 2019

Page 26 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Independent auditor’s report To the Shareholders of One Caribbean Media Limited

Report on the audit of the consolidated fnancial statements

Our opinion In our opinion, the consolidated fnancial statements present fairly, in all material respects, the consolidated fnancial position of One Caribbean Media Limited (the Company) and its subsidiaries (together ‘the Group’) as at December 31, 2018, and their consolidated fnancial performance and their consolidated cash fows for the year then ended in accordance with International Financial Reporting Standards.

What we have audited One Caribbean Media Limited’s consolidated fnancial statements comprise: • the consolidated balance sheet as at December 31, 2018; • the consolidated statement of proft or loss for the year then ended; • the consolidated statement of other comprehensive income for the year then ended; • the consolidated statement of changes in equity for the year then ended; • the consolidated statement of cash fows for the year then ended; and • the notes to the consolidated fnancial statements, which include signifcant accounting policies.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated fnancial statements section of our report.

We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our opinion.

Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code). We have fulflled our other ethical responsibilities in accordance with the IESBA Code.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 27 Independent auditor’s report (Continued) Our audit approach

Overview

• Overall Group materiality: TT$2.5 million, which represents 5% of proft before tax before impairment.

Materiality • The Group audit included full scope audits of three signifcant components, two of which are Trinidad & Tobago subsidiaries and one a Barbadian subsidiary.

• The Group audit also included specifed procedures over select balances at certain Group scoping other components such as investment properties, property plant and equipment, inventory, revenue and accounts receivables.

• The Group audit covered 93% of proft before tax and 89% of total assets.

Key audit • Impact of initial adoption of IFRS 9 ‘Financial Instruments’. matters • Determination of expected credit losses (ECL) on fnancial assets.

• Valuation of goodwill.

Audit scope As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated fnancial statements. In particular, we considered where management made subjective judgements; for example, in respect of signifcant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including, among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

How we tailored our Group audit scope We tailored the scope of our audit in order to perform sufcient work to enable us to provide an opinion on the consolidated fnancial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

The following components were deemed to be signifcant and were subject to a full scope audit: • Caribbean Communications Network Limited • The Nation Corporation • Green Dot Limited

We also performed specifed procedures over the following fnancial statement line items for other components: • One Caribbean Media Limited – Employees’ Share Ownership Plan, goodwill, borrowings, property plant & equipment and taxation • Caribbean Communications Company Limited – cash, accounts receivable, intangible assets & revenue • VL Limited – trade receivables • Basic Space Limited & Donald Dunne Holdings Limited - investment properties • Novo Media Limited – intangible assets

Page 28 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Independent auditor’s report (Continued)

Our audit approach (continued) How we tailored our Group audit scope (continued)

The signifcant components and the procedures over the select balances of other components accounted for 93% of the Group’s proft before tax and 89% of the Group’s total assets. One of the three signifcant components of the Group is audited by PwC Trinidad and one by PwC Barbados. The third signifcant component is audited by a non-PwC frm in Trinidad & Tobago. The specifed procedures over certain balances of the other components are performed by PwC Trinidad. For the work performed by all component audit teams (both PwC and non-PwC) operating under our instructions, we determined the level of involvement we needed to have in the audit work at those locations to be satisfed that sufcient audit evidence has been obtained for the purpose of our opinion. This included ensuring our instructions were adhered to, review of audit work where considered appropriate and regular communications and meetings with the component audit teams throughout the year. Materiality The scope of our audit was infuenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the consolidated fnancial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to infuence the economic decisions of users taken on the basis of the consolidated fnancial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the consolidated fnancial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the efect of misstatements, both individually and in aggregate, on the consolidated fnancial statements as a whole.

Overall Group materiality TT$2.5 million

How we determined it 5% of proft before tax and impairment charges

Rationale for the We chose proft before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly materiality benchmark measured by users, and is a generally accepted benchmark. We chose 5% applied which is within a range of acceptable benchmark thresholds.

We agreed with the Audit Committee that we would report to them misstatements identifed during our audit above $125,000, as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 29 Independent auditor’s report (Continued) Our audit approach (continued)

Key audit matters Key audit matters are those matters that, in our professional judgment, were of most signifcance in our audit of the consoli- dated fnancial statements of the current period. These matters were addressed in the context of our audit of the consolidat- ed fnancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter

We obtained an understanding of management’s IFRS 9 implementation plan including expected impacts to Impact of initial adoption of IFRS 9 ‘Financial classifcation & measurement and expected credit loss Instruments’ estimation. We read the Group’s updated accounting policies Refer to notes 4, 10, 11 & 12 of the consolidated fnancial statements which addressed classifcation, measurement and for disclosures of related accounting policies and balances. impairment provisioning and compared them with the requirements of the standard. The Group adopted the accounting standard IFRS 9 ‘Financial Instruments’ efective January 1, 2018. The standard introduces We obtained an understanding of the relevant new accounting requirements for the classifcation & controls management had implemented in relation to measurement and impairment of fnancial instruments. the adoption of the new standard and tested them for implementation. The new classifcation & measurement approach for fnancial assets refects the business model in which the fnancial assets are We tested the completeness of fnancial assets to managed and the underlying cash fow characteristics. determine whether all assets were included in the IFRS 9 calculations by evaluating the assets recorded on the In relation to impairment, IFRS 9 prescribes a new, forward looking statement of fnancial position and whether they met expected credit loss (‘ECL’) impairment model which takes into the defnition of a fnancial asset in the scope of IFRS 9. account reasonable and supportable forward looking information and which will generally result in the earlier recognition of impairment losses on receivables and loans, including trade receivables. The general requirement in IFRS 9 is that an entity must apply the standard at the date of initial adoption retrospectively. The standard provides the option but does not require an entity to restate prior periods. Management chose not to restate and, as such, any diferences between the previously reported carrying amounts and those determined under IFRS 9 at the date of initial application are recognised in the opening retained earnings. The impact of adopting the new standard resulted in a reduction in opening retained earnings of TT$21m as of January 1, 2018.

Page 30 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Independent auditor’s report (Continued) Our audit approach (continued)

Key audit matters (continued)

Key audit matter How our audit addressed the key audit matter

Impact of initial adoption of IFRS 9 Classifcation and measurement ‘Financial Instruments’ (continued) We performed the following audit procedures: • obtained an understanding and evaluated management’s business model assessment and, for a sample of Refer to notes 4, 10, 11 & 12 of the consolidated fnancial instruments, tested the inputs into the solely payments of statements for disclosures of related accounting policies and principal and interest test performed by management by balances. vouching to original contracts; and We focused on the initial adoption of IFRS 9 in particular due • tested that management had evaluated and classifed all to: fnancial assets, by reconciling management’s assessment • the new classifcation & measurement approach required to the assets and liabilities included on the statement of by the standard for fnancial assets which involves fnancial position. judgment in determining the business model; Impairment • the retrospective application and impact on opening Our audit work in relation to impairment included the retained earnings; following procedures: • we tested the opening balance adjustment for • the number of signifcant management determined mathematical accuracy and corroborated a sample of the judgements relating to the determination of the data inputs; ECL as detailed in the subsequent key audit matter - ‘Determination of expected credit losses (ECL) on • we tested the appropriateness of the opening balance fnancial assets’; adjustment and current year provisions by performing the procedures relating to the determination of the • the determination of the ECL should be performed ECL as detailed in the subsequent key audit matter - without the use of hindsight which can be difcult to ‘Determination of expected credit losses (ECL) on fnancial apply in practice; assets’; • the availability of diferent approaches allowed under • we compared management’s assumptions, judgements the standard for recognising and measuring fnancial and methodologies to those utilised in the prior year to assets including the general approach or the simplifed assess whether there was any application of hindsight in approach for qualifying assets; the determination of the ECLs; and • the implementation of new models to measure the • we evaluated the appropriateness of the application of expected credit losses on certain fnancial assets either a specifed expected credit loss model (general measured at amortised cost; and approach) or a simplifed approach to the relevant fnancial assets by understanding the nature of the fnancial assets • the signifcant new disclosure requirements resulting and comparing the application to the requirements of the from the adoption of the standard. standard. We further evaluated the fnancial statement disclosures arising on initial adoption of IFRS 9 to determine if they were in accordance with the requirements of the standard. As a result of the above audit procedures, no material diferences were noted.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 31 Independent auditor’s report (Continued) Our audit approach (continued) Key audit matters (continued) Determination of expected credit losses (ECL) on fnancial assets Trade receivables: Our audit work included the following procedures: Refer to notes 4, 10, 11 & 12 of the consolidated fnancial statements • we obtained an understanding of management’s for disclosures of related accounting policies and balances. process for estimating the ECL; • we tested the provision matrix used by management As at December 31, 2018, the Group recognised TT$50m in as a practical expedient to estimate lifetime ECLs for provisions for expected credit losses, which relate to three main these fnancial assets; types of fnancial assets: • we assessed the appropriateness of the period over • Trade receivables which historical loss rates are considered; • Corporate and sovereign bonds • Instalment credit • we tested the calculation of the historical loss rate including recalculating the loss rate for diferent Management utilised the ‘simplifed approach’ for determining aging buckets; the ECL for trade receivables. Under the simplifed approach, the • for forward looking assumptions, we held discussions provision combines the historical loss rate with forward-looking with management and corroborated the assumptions assumptions which takes into account management’s view of the using both internal and publicly available information; future of the customer’s ability to pay, along with other factors. and The key judgments in applying the simplifed approach include: • we tested the application of any specifc provisions • determining the period over which historical for customers where relevant. loss rates are appropriate; and • determining the historical loss rates including Corporate and sovereign bonds and instalment consideration of forward looking assumptions. credit: In relation to the specifed expected credit loss model applicable Our audit work included the following procedures: to the corporate and sovereign bonds and instalment credit fnancial assets, there are a number of signifcant management • we obtained an understanding of management’s judgements which are required in measuring the ECL under IFRS internal rating models, evaluated the methodology 9 including: used and tested the mathematical integrity of the models; • determining the criteria for a signifcant increase in credit risk (‘SICR’); • we obtained an understanding and tested the key • factoring in future economic assumptions; and data sources and assumptions used in the ECL models. • determining the Exposure at Default (‘EAD’), Probability of For data from external sources, we understood Default (‘PD’) and Loss Given Default (‘LGD’). the process for choosing the data points and their relevance to the Group; We focused on this area as a result of the signifcant management • we held discussions with management and, with judgements outlined above as well as the complexity involved in the assistance of our internal expert, evaluated the developing and implementing new accounting models in order forward looking assumptions using publicly available to measure the expected credit losses on the fnancial assets information, where available; measured at amortised cost. The use of these models involves • we evaluated the appropriateness of management’s additional data inputs which increases the risk that the data used determination of SICR in accordance with the to develop assumptions and operate the model is not complete standard and the resultant basis for classifcation of or accurate. the exposures into various stages;

Page 32 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Independent auditor’s report (Continued) Our audit approach (continued) Key audit matters (continued)

Determination of expected credit losses (ECL) on fnancial • for a sample of exposures, we tested the appropriateness of assets (continued) the Group’s staging; • for a sample of exposures, we assessed the appropriateness Refer to notes 4, 10, 11 & 12 of the consolidated fnancial of the EAD determination, including the consideration of statements for disclosures of related accounting policies and prepayments and repayments in the cash fows and the balances. resulting mathematical calculations; • for Probability of Default we tested a sample of the historical data used to arrive at the ‘Point in Time’ PD used in the model; and • on a sample basis we tested the calculation of the LGD used by management in the ECL calculations, including the appropriateness of the use of collateral and the resulting mathematical calculations. As a result of the above audit procedures, no material diferences were noted.

Valuation of goodwill of each CGU and found it to be in accordance with the requirements of IAS 36 and the Group’s accounting policy. The Refer to note 8 of the consolidated fnancial statements for method used and approach to assumptions was also compared disclosures of related accounting policies and balances. to the prior year and found to be consistent.

Intangible assets stated on the Group’s consolidated In order to challenge the reasonableness of management’s balance sheet included TT$120m of goodwill. An assumptions, including discount rates and growth percentages impairment assessment of goodwill is required annually used in their cash fow projections, we: by the accounting standards. • recalculated the weighted average cost of capital (WACC) used to discount the cash fows in order to assess whether Management has calculated the recoverable amount of those rates were reasonable based on knowledge of the each cash generating unit (CGU) from which goodwill has economic environment and the risk premium associated arisen by projecting the value in use of the CGU. The fair with the respective industries and countries. value less costs to sell could not be readily determined. • compared the cash fow forecasts used in the impairment The value in use is based on discounted future cash fow assessment prepared by management to those presented forecasts over which management makes judgements on to the Board of Directors as part of the annual budgeting certain key inputs including discount rates and long term process. growth rates. • evaluated the reasonableness of the forecasts made by As a result of management’s goodwill impairment comparing past forecasts to historical results where this assessments, goodwill impairment of TT$5.9m was was available and by comparing to the current year results recognised for one CGU. of the entity. • considered subsequent events and any associated impact We focused on this area because of the signifcant level of of these on the CGUs’ cash fow projections. judgment required in arriving at the key assumptions used in management’s impairment assessment. We further tested the mathematical accuracy of management’s We evaluated the method used by management to calculations. perform their annual goodwill impairment assessment As a result of the above audit procedures, no material diferences were noted.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 33 Independent auditor’s report (Continued)

Other information Management is responsible for the other information. The other information comprises the information included in One Caribbean Media Limited’s Annual Report (but does not include the consolidated fnancial statements and our auditor’s report thereon), which is expected to be made available to us after the date of this auditor’s report. Our opinion on the consolidated fnancial statements does not cover the other information and we will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated fnancial statements, our responsibility is to read the other information identifed above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated fnancial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read One Caribbean Media Limited’s Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of management and those charged with governance for the consolidated fnancial statements Management is responsible for the preparation and fair presentation of the consolidated fnancial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of consolidated fnancial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated fnancial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s fnancial reporting process. Auditor’s responsibilities for the audit of the consolidated fnancial statements Our objectives are to obtain reasonable assurance about whether the consolidated fnancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to infuence the economic decisions of users taken on the basis of these consolidated fnancial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated fnancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufcient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the efectiveness of the Group’s internal control.

Page 34 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Independent auditor’s report (Continued)

Auditor’s responsibilities for the audit of the consolidated fnancial statements (continued)

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signifcant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated fnancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated fnancial statements, including the disclosures, and whether the consolidated fnancial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufcient appropriate audit evidence regarding the fnancial information of the entities or business activities within the Group to express an opinion on the consolidated fnancial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and signifcant audit fndings, including any signifcant defciencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most signifcance in the audit of the consolidated fnancial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefts of such communication. The engagement partner on the audit resulting in this independent auditor’s report is Fatima Aziz-Mohammed.

Port of Spain Trinidad West Indies

5 April 2019

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 35 ONE CARIBBEAN MEDIA LIMITED CONSOLIDATED BALANCE SHEET (These fnancial statements are expressed in Trinidad and Tobago dollars)

As at 31 December

2018 2017 Notes $’000 $’000 ASSETS Non-current Assets

Investment properties 6 61,860 65,540 Property, plant and equipment 7 342,281 327,188 Intangible assets 8 152,804 161,386 Investments in associates and joint venture 9 60,660 60,772 Financial assets - Fair value through other comprehensive income 10 15,323 4,786 - At amortised cost 10 6,509 10,751 Retirement beneft asset 22 11,574 14,594 Loans and other receivables 11 13,692 15,500 Deferred programming 14 1,598 1,365 Deferred income tax asset 15 21,665 12,052 687,966 673,934

Current Assets Inventories 16 30,122 35,452 Loans and other receivables 11 928 2,655 Trade receivables 12 84,499 115,096 Sundry debtors and prepayments 13 21,300 21,856 Deferred programming 14 1,792 3,860 Taxation recoverable 14,614 12,675 Due from related parties 2 19,652 17,974 Term deposits 17 25,418 10,651 Cash and cash equivalents (excluding bank overdrafts) 17, 23 68,040 78,030 266,365 298,249

Total Assets 954,331 972,183

Page 36 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED CONSOLIDATED BALANCE SHEET (These fnancial statements are expressed in Trinidad and Tobago dollars)

As at 31 December

2018 2017 Notes $’000 $’000 EQUITY AND LIABILITIES Capital and Reserves Share capital 18 391,184 390,916 Other reserves 19 27,802 16,540 Retained earnings 314,753 352,592 733,739 760,048 Non-controlling interests 20 22,750 13,827 Unallocated shares held by ESOP 21 (40,509) (38,544) Total Equity 715,980 735,331

Non-current Liabilities Retirement beneft obligation 22 13,050 14,381 Trade payables - 490 Bank borrowings 23 57,750 56,992 Deferred income tax liabilities 15 37,130 36,524 107,930 108,387 Current Liabilities Trade payables 26,120 35,571 Sundry creditors and accruals 39,949 35,075 Provisions for liabilities and other charges 24 25,914 24,593 Bank borrowings 23 33,103 27,648 Taxation payable 5,335 5,578 130,421 128,465

Total Liabilities 238,351 236,852 Total Equity and Liabilities 954,331 972,183

The notes on pages 42 to 103 are an integral part of these consolidated fnancial statements.

On 5 April 2019, the Board of Directors of One Caribbean Media Limited authorised these consolidated fnancial statements for issue and were signed on its behalf.

Director Director

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 37 ONE CARIBBEAN MEDIA LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (These fnancial statements are expressed in Trinidad and Tobago dollars)

Year ended 31 December 2018 2017 Notes $’000 $’000

Revenue 5 393,769 442,177 Cost of providing services 25 (265,307) (282,047)

Gross proft 128,462 160,130

Administrative expenses 25 (72,806) (74,688) Marketing expenses 25 (3,579) (4,435)

Operating proft 52,077 81,007

Net impairment losses on fnancial assets (5,392) (1,822) Impairment losses on other assets 27 (11,895) (7,000) Dividend income 2,881 1,191 Interest income 2,554 3,093 Finance costs (6,350) (5,233) Share of proft of associates and joint venture 9 4,280 1,233

Proft before tax 38,155 72,469

Taxation 15 (17,917) (20,023)

Proft for the year 20,238 52,446

Proft attributable to: - Non-controlling interests 725 4,690 - Owners of the parent 19,513 47,756 20,238 52,446

Earnings per share basic 28 $0.31 $0.76

Earnings per share fully diluted 28 $0.30 $0.73

The notes on pages 42 to 103 are an integral part of these consolidated fnancial statements

Page 38 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (These fnancial statements are expressed in Trinidad and Tobago dollars)

Year ended 31 December 2018 2017 Notes $’000 $’000

Proft for the year 20,238 52,446

Other comprehensive income/(loss): Items that will not be reclassifed to proft or loss Remeasurement of retirement beneft asset / obligation (473) 14,859 Deferred taxation 15 2,040 (4,351) 1,567 10,508

Items that may be subsequently reclassifed to proft or loss Currency translation diferences 19 948 654 Revaluation of investments 19 - 129 Gains transferred to income on disposal of fnancial investments 19 (104) (104) 844 679

Total comprehensive income for the year 22,649 63,633

Attributable to: - Non-controlling interests 20 723 4,690 - Owners of the parent 21,926 58,943 Total comprehensive income for the year 22,649 63,633

The notes on pages 42 to 103 are an integral part of these consolidated fnancial statements

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 39 ONE CARIBBEAN MEDIA LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (These fnancial statements are expressed in Trinidad and Tobago dollars)

Attributable to owners of the parent Non- Unallocated Share Other Retained controlling shares held Total Capital Reserves Earnings Total Interests by ESOP Equity

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000

Balance at 1 January 2017 388,899 16,084 331,837 736,820 4,938 (39,439) 702,319

Proft for the year - - 47,756 47,756 4,690 - 52,446 Other comprehensive income for the year - 679 10,508 11,187 - - 11,187 Total comprehensive income for the year - 679 58,264 58,943 4,690 - 63,633

Depreciation transfer - (223) 223 - - - -

Transactions with owners Non-controlling interest on acquisition of subsidiary 20 - - - - 4,199 - 4,199 Sale / allocation of treasury shares 21 - - 10,720 10,720 - 13,411 24,131 Purchase of treasury shares 21 - - - - - (12,516) (12,516) Share options granted/exercised 18 2,017 - - 2,017 - - 2,017 Dividends to equity holders - - (48,452) (48,452) - - (48,452) Total transactions with owners 2,017 - (37,732) (35,715) 4,199 895 (30,621)

Balance at 31 December 2017 390,916 16,540 352,592 760,048 13,827 (38,544) 735,331 IFRS 9 initial application adjustments 33.1(a) - 10,642 (21,088) (10,446) - - (10,446) Balance at 1 January 2018 restated 390,916 27,182 331,504 749,602 13,827 (38,544) 724,885

Proft for the year - - 19,513 19,513 725 - 20,238 Other comprehensive income / (loss) for the year - 844 1,569 2,413 (2) - 2,411 Total comprehensive income for the year - 844 21,082 21,926 723 - 22,649

Depreciation transfer - (224) 224 - - - -

Transactions with owners Non-controlling interest on investment 20 - - - - 8,200 - 8,200 Purchase of treasury shares 21 - - - - - (1,965) (1,965) Share options granted/exercised 18 268 - - 268 - - 268 Dividends to equity holders - - (38,057) (38,057) - - (38,057) Total transactions with owners 268 - (38,057) (37,789) 8,200 (1,965) (31,554)

Balance at 31 December 2018 391,184 27,802 314,753 733,739 22,750 (40,509) 715,980

The notes on pages 42 to 103 are an integral part of these consolidated fnancial statements

Page 40 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (These fnancial statements are expressed in Trinidad and Tobago dollars)

Year ended 31 December 2018 2017 Notes $’000 $’000 Cash fows from operating activities Proft before tax 38,155 72,469 Adjustments for: Depreciation 6 & 7 20,625 19,964 Amortisation 8 3,032 2,413 Interest income (2,554) (3,093) Finance costs 6,350 5,233 Dividend income (2,881) (1,191) Impairment 27 11,895 7,000 Proft on disposal of fxed assets (9) (8) Share of proft in associates and joint venture 9 (4,280) (1,233) Proft on disposal of available-for-sale fnancial assets - (130) Allocation of ESOP shares - 1,186 Share option scheme - value of services provided 18 268 268 Decrease in retirement beneft obligation 1,216 2,811 Net change in operating assets and liabilities 29 (1,186) 29,426 70,630 135,114 Interest paid (4,968) (4,007) Taxation refunds 392 - Taxation payments (20,602) (22,815) Net cash generated from operating activities 45,452 108,293

Cash fows from investing activities Net cash infow / (outfow) arising on new investments 32 8,200 (53,065) Purchase of property, plant and equipment 7 (34,995) (28,837) Purchase of intangible assets 8 (350) (700) Proceeds from disposal of available-for-sale fnancial assets (10) 889 Repurchase of treasury shares 21 (1,965) (12,516) Purchase of non-controlling interest - (48) Interest received 2,542 3,093 Dividends received 2,881 1,191 Proceeds from disposal of property, plant and equipment 97 125 Net cash used in investing activities (23,600) (89,868)

Cash fows from fnancing activities Proceeds from borrowings 52,028 72,900 Repayment of borrowings (46,869) (35,770) Share options 18 - 1,749 Dividends paid (38,057) (48,452) Net cash used in fnancing activities (32,898) (9,573)

Net (decrease) / increase in cash and cash equivalents (11,046) 8,852

Cash and cash equivalents at beginning of year 74,932 66,080 at end of year 63,886 74,932

Represented by: Cash and cash equivalents 17 68,040 78,030 Bank overdrafts 23 (4,154) (3,098) 63,886 74,932 The notes on pages 42 to 103 are an integral part of these consolidated fnancial statements

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 41 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

1 Incorporation and principal activities One Caribbean Media Limited (the Company) and its subsidiaries (together the Group) are engaged primarily in media services, technology and broadband services, wholesale distribution, property management and the sale of other goods and services throughout the Caribbean region. The Group has locations in Trinidad and Tobago, Barbados and the Eastern Caribbean. The Company is incorporated in the Republic of Trinidad and Tobago and its registered ofce is Express House, 35-37 Independence Square, Port of Spain.

The Company has listings on the Trinidad and Tobago Stock Exchange and the Barbados Stock Exchange.

2 Related party transactions and balances (i) Transactions carried out with related parties:

2018 2017 $’000 $’000 Colonial Life Insurance Company Limited Advertising 753 2,048

Purchase of services 617 1,693

Juris Chambers Legal fees 299 162

Employee beneft obligation Pension contributions 6,445 6,067

(ii) Key management compensation Directors’ fees 741 798 Other management salaries and short-term employee benefts 10,099 10,459 Share options granted and exercised (Note 18) 268 2,017 Employee Share Ownership Plan 7,680 9,946

(iii) Balances with related parties shown in the balance sheet: Cumberland Communications Limited 827 877 Novo Technologies Inc. 1,319 1,319 Green Dot Limited’s Afliates * 17,506 15,778 19,652 17,974

These receivables are unsecured, free of interest and payable on demand.

* The amounts in relation to Green Dot Limited’s Afliates are to be converted to investments in 2019.

Page 42 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

2 Related party transactions and balances (continued) (iv) Substantial interests A substantial interest means one-tenth or more of the issued share capital of the Company.

The National Investment Fund Holding Company Limited (NIFTT) owns 15,285,917 shares. These shares were previously owned by Colonial Life Insurance Company Limited.

(v) Subsidiaries: Ownership Ownership interest held Country of Entity interest held by non- Principal activities incorporation by the Group controlling interests 2018 2017 2018 2017

Basic Space Limited Trinidad and Tobago 100% 100% 0% 0% Investment property

Caribbean Communications Company Limited Montserrat 100% 100% 0% 0% Media Services

Caribbean Communications Network Limited Trinidad and Tobago 100% 100% 0% 0% Media Services

Donald Dunne Holdings Limited Trinidad and Tobago 100% 100% 0% 0% Investment property

Green Dot Limited Trinidad and Tobago 51% 51% 49% 49% Broadband services

Grenada Broadcasting Network Limited Grenada 84% 84% 16% 16% Media Services

Novo Media Limited Trinidad and Tobago 76% 76% 24% 24% Software development

One Caribbean Flexipac Industries and Solutions Limited Trinidad and Tobago 55% 0% 45% 0% Flexographic Printing

The Nation Corporation Barbados 100% 100% 0% 0% Media Services

VL Limited Trinidad and Tobago 100% 100% 0% 0% Wholesale distribution

Only direct and active subsidiaries are listed.

See Note 20 for details of non-controlling interests.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 43 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

2 Related party transactions and balances (continued) Accounting policies (a) Consolidation Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to afect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred by the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition by acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifable net assets. Acquisition-related costs are expensed as incurred.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in proft or loss.

Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IFRS 9 (previously IAS 39) either in proft or loss or as a change to other comprehensive income. Contingent consideration that is classifed as equity is not re-measured, and its subsequent settlement is accounted for within equity.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the diference is recognised directly in the consolidated statement of proft or loss (Note 8).

Inter-company transactions, balances, income and expenses and unrealised gains on transactions between Group companies are eliminated. Profts and losses resulting from intercompany transactions that are recognised in assets are also eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Page 44 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

2 Related party transactions and balances (continued) Accounting policies (continued) (b) Changes in ownership interests in subsidiaries without change of control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The diference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

(c) Disposal of subsidiaries When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in proft or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or fnancial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassifed to proft or loss.

3 Critical estimates, judgements and errors The preparation of fnancial statements requires the use of accounting estimates which, by defnition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Group’s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about each of these estimates and judgements is included in Notes referred to below together with information about the basis of calculation for each afected line item in the fnancial statements. In addition, this Note also explains where there have been actual adjustments this year as a result of changes to previous estimates.

The areas involving signifcant estimates or judgements are: • Estimation of fair values of investment properties – Note 6 • Impairment assessment of goodwill – Note 8 • Estimation of the expected credit loss allowance – Note 4, 10, 11, 12 • Estimation of retirement beneft asset / obligation – Note 22

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a fnancial impact on the entity and that are believed to be reasonable under the circumstances.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 45 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management 4.1 Financial risk factors The Group’s activities expose it to a variety of fnancial risks: market risk (including foreign exchange risk, price risk and cash fow and fair value interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of fnancial markets and seeks to minimise potential adverse efects on the Group’s fnancial performance.

Risk management is carried out by management. Management evaluates and hedges fnancial risks in close co- operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specifc areas, such as foreign exchange risk, interest rate risk, credit risk, use of fnancial instruments and investment of excess liquidity.

(a) Market risk (i) Foreign exchange risk The Group operates regionally and is exposed to foreign exchange risk arising from currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities. This is managed by ensuring that net exposure in foreign assets and liabilities is kept to an acceptable level by monitoring currency positions as well as timely settlement of foreign payables and holding foreign currency balances. There were no changes in the policies and procedures for managing foreign currency risk compared with previous year.

At 31 December 2018, 1% movement in the exchange rate would impact the Group’s consolidated statement of proft or loss by $153,705 (2017 - $94,596).

There have been no changes to the way the Group manages this exposure compared to the prior year.

(ii) Price risk The Group is minimally exposed to equity securities price risk because of investments held by the Group and classifed as FVOCI equities (previously available-for-sale). Securities prices are monitored by management on a regular basis for any unusual fuctuations and the Group diversifes its portfolio to manage this risk. The Group is not exposed to commodity price risk.

The Group’s listed securities are included on the Barbados Stock Exchange (BSE). If the prices on the BSE had increased or decreased by 5% with all other variables held constant, the fair value reserve within other reserves in equity would increase or decrease by $81,700 (2017 - $88,832).

There have been no changes to the way the Group manages this exposure compared to the prior year.

Page 46 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (a) Market risk (continued) (iii) Cash fow and fair value interest rate risk As the Group has signifcant fxed-rate interest-bearing assets, it is subject to independent changes in market interest rates resulting in fair value interest rate risk. This fair value interest rate risk is managed through diversifcation in short term fnancial instruments. The impact of a 1% change in market rates on the fair value of fxed rate instruments is minimal.

The Group’s main cash fow interest rate risk arises from long-term borrowings with variable rates. The Group has negotiated that accelerated repayments of long-term borrowings can be made without incurring penalties and additional interest.

At 31 December 2018, 1% movement in the interest rate would impact the Group’s consolidated statement of proft or loss by $867,012 (2017 - $822,909). There have been no changes to the way the Group manages this exposure compared to the prior year.

(b) Credit risk Credit risk is the risk of default on fnancial assets that may arise from a counterparty failing to make payments or honour an obligation. Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents and deposits with banks and fnancial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. The Group has no signifcant concentration of credit risk and trades mainly with recognised credit worthy third parties.

Business is conducted with only reputable fnancial institutions. Customers trading on credit terms are subject to credit verifcation procedures and credit limits are defned for each customer. The approval process is undertaken on an individual basis before management provides credit to customers.

There have been no changes to the way the Group manages this exposure compared to the prior year.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 47 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) The maximum credit risk exposure is as follows: 2018 2017 $’000 % $’000 %

Financial assets - FVOCI 15,323 8% 4,786 2% Finanical assets - amortised cost 6,509 3% 10,751 4% Loans and other receivables (current and non-current) 14,620 6% 18,155 7% Trade receivables 84,499 36% 115,096 45% Due from related parties 19,652 8% 17,974 7% Term deposits 25,418 11% 10,651 4% Cash and cash equivalents 68,040 28% 78,030 31% 234,061 100% 255,443 100%

Term deposits and cash are held with reputable fnancial institutions. There is no formal credit rating policy for the quality of assets held as at the balance sheet date. See Notes 11 and 12 for the credit quality of trade receivables and impairment.

Collateral is not held for any balances exposed to credit risk, with the exception of loans and receivables that are backed by the product provided to the customer that was fnanced.

The Group recognises provision for losses for assets subject to credit risk using the expected credit loss model.

The Group uses two approaches in arriving at expected losses: • The simplifed approach for trade receivables • The general approach for all other fnancial assets

The simplifed approach The Group applies the IFRS 9 simplifed approach to measuring expected credit losses for trade receivables. The simplifed approach eliminates the need to calculate 12-month ECL and to assess when a signifcant increase in credit risk has occurred. Accordingly, a lifetime expected loss allowance is used from day 1. To measure the lifetime loss allowance, the Group frst considers whether any individual customer accounts require specifc provisions. Loss rates are then assigned to these accounts based on an internal risk rating system considering various qualitative and quantitative factors.

The expected loss rates for non-specifc accounts are based on the payment profles of sales over a period of 24 months starting 1 January 2016 and ending on 31 December 2017 and the corresponding historical credit losses experienced within this period.

Page 48 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) The general approach Under the general approach, the Group considers the probability of default upon initial recognition of the asset and whether there has been a signifcant increase in credit risk on an ongoing basis throughout each reporting period.

To assess whether there is a signifcant increase in credit risk each company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information, including the following: • External credit ratings for bonds (as far as available). Where such ratings are not available, the Group applies certain assumptions and derives an equivalent rating for the respective securities. • Signifcant changes in the expected performance and behaviour of the borrower, including changes in the payment status of borrowers in the Group and changes in the operating results of the borrower.

Regardless of the analysis above, a signifcant increase in credit risk is presumed: • If a debtor is more than 30 days past due in making a contractual payment. • If the bond issuer’s credit rating has been downgraded from investment grade to non-investment grade.

A default on a fnancial asset occurs in the following circumstances: • When the issuer of a bond has missed a payment of principal or interest or has announced its intention to suspend payments on part or all of its fnancial obligations, or • For all other fnancial assets, when the counterparty fails to make contractual payments within 90 days of when they fall due.

Exposure at default (EAD) for loans The exposure at default for loans is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date. A customer’s account is considered to be in default after the expiration of 90 days.

Loss given default (LGD) for loans Upon default of loans to customers, the collateral value of the renewable energy systems and any decommissioning costs are deducted from the balance owed to determine the true liable loss. The collateral values are based on the agreed prices for the components (panels, inverters and racking) and are linked to the prices that the Company would incur to purchase them. The rates are competitive in the market.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 49 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) Summary of ECL calculations a. The simplifed approach (trade receivables) Incorporation of forward-looking information Historical loss rates for trade receivables are adjusted to refect current and forward-looking information on macroeconomic factors – GDP growth, unemployment, interest rates and tourism - afecting the ability of the customers to settle the receivables. The Group has identifed indicators such as trends in days sales outstanding, concentration risk and macroeconomic fundamentals of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.

For other fnancial assets, the Group employs various probability weighted scenarios and transition matrices to predict future behaviour. In developing the various models, the Group considers both internal data and external macroeconomic data.

A summary of the assumptions underpinning the Group’s expected credit loss model under the simplifed approach is further analysed below showing: • Specifc provisions using the Group’s internal grading system • General provisions using a standardised provision matrix

Trade receivables assessed for specifc provisions are identifed based on certain default triggers (e.g. customers with a signifcant portion of their invoices > 90 days, customers with signifcant cash fow issues, business model issues and other relevant factors). Once the population for specifc provisions is identifed, it is segregated from the rest of the portfolio and an ECL is calculated based on an individual rating assignment.

A provision matrix is then applied to all remaining accounts on a portfolio basis. Customer balances covered by specifc provisions are excluded from the portfolio provision calculations to avoid double counting.

The following is a summary of the ECL on trade receivables from a combination of specifc and general provisions:

Average Estimated Expected Aging ECL Rate EAD credit loss % $’000 $’000 Current (0 - 30 days) 2.5% 27,783 681 31 - 60 days 3.1% 20,806 646 61 - 90 days 5.1% 8,922 452 91 - 365 days 9.2% 16,035 1,482 Over 365 days 72.1% 51,002 36,788 32.2% 124,548 40,049

A 1% change in the loss rate would result in a change in the ECL of $1,584,866.

Page 50 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) Summary of ECL calculations (continued) a. The simplifed approach (trade receivables) (continued) The movement in the provision for expected credit losses for trade receivables is as follows: 2018 2017 $'000 $'000

Balance at beginning of the year as reported under IAS 39 24,684 15,971 Amounts restated through opening retained earnings 15,707 - Opening ECL under IFRS 9 40,391 15,971 Acquisition - 11,111 Increase in loss allowance recognised in proft or loss 5,392 1,822 Bad debts written of (5,734) (4,220) Balance at end of the year 40,049 24,684

b. The general approach A summary of the assumptions underpinning the Group’s expected credit loss model under the general approach is as follows:

Category Defnition Basis for recognition of expected credit loss provision

Performing The counterparty has a low risk of 12 month expected losses. Where the lifetime (Stage 1) default and a strong capacity to meet of an asset is less than 12 months, expected contractual cash fows. losses are measured over its lifetime.

Underperforming Financial assets for which there is a Lifetime expected losses (Stage 2) signifcant increase in credit risk since origination

Non-performing The fnancial asset is in default Lifetime expected losses (Stage 3)

Write-of There is no reasonable expectation Asset is written of of recovery

Over the term of the fnancial asset, the Group accounts for its credit risk by appropriately providing for expected credit losses on a timely basis. In calculating the expected credit loss rates, the Group considers historical loss rates for each category of fnancial asset and adjusts for forward looking macroeconomic data.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 51 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) Summary of ECL calculations (continued) b. The general approach (continued)

Customer loans

Average ECL Estimated Expected Aging Rate EAD credit loss % $’000 $’000 Performing (Stage 1) - - - Underperforming (Stage 2) 2.4% 13,469 322 Non-performing (Stage 3) 62.6% 3,935 2,462 16.0% 17,404 2,784

A 1% change in the probability of default would result in a change in the ECL of $70,350.

The movement in the provision for expected credit losses for customer loans is as follows:

Under- Non- Performing performing performing Total $’000 $’000 $’000 $’000 Balance at beginning of the year as reported under IAS 39 - - 280 280 Amounts restated through opening retained earnings - 381 2,979 3,360 Opening ECL under IFRS 9 - 381 3,259 3,640 Net change to provisions and reclassifcations - (59) (698) (757) Amounts written of to provisions - - (99) (99) Balance at end of the year - 322 2,462 2,784

Page 52 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) Summary of ECL calculations (continued) b. The general approach (continued)

Government of Barbados exposure During the period 2008, the start of the global fnancial crisis, and 2017 the Government of Barbados (GOB) sovereign credit rating sufered several downgrades, moving from “investment grade” to one of the lowest ratings as assessed by the rating agencies. At the beginning of 2018 all related Government debt was considered to be extremely speculative with little prospect for a full recovery.

Considering the high credit risk associated with the GOB debt and the frequency of the credit rating downgrades and other related negative factors, the Group assessed the potential impact of the default using various scenarios. Accordingly, all exposures were classifed as Stage 2 as of January 1, 2018, which is the date of initial application of IFRS 9. The Expected Credit Loss (ECL) parameters refected a high probability of default at that date and as a consequence an impairment charge of $882,455 was assessed and recorded within opening retained earnings.

In June 2018, the GOB announced the suspension of interest and amortisation payments due on its debts owed to external commercial creditors. It was envisaged that in addition to foreign currency denominated external debt, domestic obligations of the central government and guaranteed debt, inclusive of treasury bills, treasury notes, debentures, bank loans and commercial bonds, which are serviced directly out of the public purse, were also subjected to the restructuring exercise. Following the announcement of default the Group reclassifed its exposures to Stage 3.

In September 2018, the GOB announced the launch of an exchange ofer open to holders of Barbados dollar- denominated debt issued by the GOB and certain state-owned enterprises (SOEs), as part of its Comprehensive Debt Restructuring. All holders of treasury bills, treasury notes, debentures, loans and bonds owed by the GOB, and loans and bonds owed by SOEs and other entities that receive transfers from the Government budget (“Afected Debt”) were provided letters explaining further details of the exchange ofer, as well as instructions for participating in the exchange ofer.

In 2010, after the collapse of Clico International Life Insurance Limited, the Group recorded an impairment provision on their investment with the company. A further provision was made in subsequent years to reduce the balance to 12.5% of the original investment.

With the initial application of IFRS 9 the Group reassessed their investment and determined that there was no chance of recovery and therefore the resulting expected credit loss of $389,038 was recorded within opening retained earnings for the balance.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 53 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) Summary of ECL calculations (continued) b. The general approach (continued) Other fnancial assets

Average ECL Estimated Expected Aging Rate EAD credit loss

% $’000 $’000 Performing (Stage 1) - - - Underperforming (Stage 2) 31.2% 9,466 2,957 Non-performing (Stage 3) 100.0% 1,303 1,303 39.6% 10,769 4,260

The movement in the provision for expected credit losses for other fnancial assets is as follows:

Under- Non- Performing performing performing Total $’000 $’000 $’000 $’000 Balance at beginning of the year as reported under IAS 39 - - 9,123 9,123 Amounts restated through opening retained earnings - 2,957 1,303 4,260 Opening ECL under IFRS 9 - 2,957 10,426 13,383 Amounts written of to provisions - - (10,426) (10,426) Balance at end of the year - 2,957 - 2,957

Due from related parties The general approach will be adopted for calculating the expected credit loss (ECL) for intercompany balances in the consolidated fnancial statements of the Group. In the Group’s fnancial statements, all related party balances are repayable on demand. The policy for assessing the recoverability of these balances is as follows: • For loans that are repayable on demand, expected credit losses are based on the assumption that repayment of the loan is demanded at the reporting date. • If the borrower has sufcient accessible highly liquid assets in order to repay the loan if demanded at the reporting date, the expected credit loss is likely to be immaterial. An assessment shall be done of the borrower in each instance to assess whether they satisfy this criteria. If criteria is not satisfed, proceed to step below. • If the borrower could not repay the loan if demanded at the reporting date, the lender should consider the expected manner of recovery to measure expected credit losses. This might be a ‘repay over time’ strategy (that allows the borrower time to pay), or a fre sale of less liquid assets.

Page 54 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.1 Financial risk factors (continued) (b) Credit risk (continued) Due from related parties (continued) • If the recovery strategies indicate that the lender would fully recover the outstanding balance of the loan, the expected credit loss will be limited to the efect of discounting the amount due on the loan (at the loan’s efective interest rate, which might be 0% if the loan is interest free) over the period until cash is realised. An assessment of the impact of discounting the balance over the expected period of recovery shall be done for each balance. • If the time period to realise cash is short or the efective interest rate is low, the efect of discounting might be immaterial. If the efective interest rate is 0%, and all strategies indicate that the lender would fully recover the outstanding balance of the loan, there is no impairment loss to recognise.

In the Group’s assessment, there is no expected credit loss.

(c) Liquidity risk Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its fnancial liabilities when they fall due.

The Group’s liquidity risk management process is measured and monitored by senior management. The process includes monitoring current cash fows on a frequent basis, assessing the expected cash infows as well as ensuring that the Group has adequate committed credit to meet its obligations and maintaining liquidity ratios. Cash fow forecasting is performed in the operating entities of the Group. Surplus cash held by the operating entities over and above balances required for working capital management is invested in interest bearing current accounts, term deposits and money market securities choosing instruments with appropriate maturities or sufcient liquidity to provide adequate headroom as determined by forecasts.

There have been no changes to the way the Group manages this exposure compared to the prior year.

The table below analyses the Group’s fnancial liabilities into relevant maturity groupings based on the remaining period at the consolidated balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash fows.

Less than More than Contractual Carrying 1 year 1 year cash fows amount $’000 $’000 $’000 $’000 At 31 December 2018 Bank borrowings 27,270 52,197 79,468 90,853 Trade payables 26,120 - 26,120 26,120 Sundry creditors and accruals 34,556 - 34,556 34,556 87,946 52,197 140,144 151,529 At 31 December 2017 Bank borrowings 28,728 76,486 105,214 84,640 Trade payables 35,571 490 36,061 36,061 Sundry creditors and accruals 28,375 - 28,375 28,375 92,674 76,976 169,650 149,076

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 55 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.2 Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefts for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet plus net debt. The Group is highly liquid and did not change its capital management strategy.

There have been no changes to the way the Group manages this exposure compared to the prior year.

2018 2017 $’000 $’000

Bank overdrafts 4,156 3,098 Short term borrowings 28,949 24,550 Long term borrowings 57,750 56,992 90,853 84,640 Less: cash and cash equivalents (68,040) (78,030) Net cash and cash equivalents 22,813 6,610

Total equity 715,980 735,331

Gearing ratio 3% 1%

Page 56 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.3 Fair value measurements and disclosures for fnancial and non-fnancial assets (i) Fair value hierarchy This note explains the judgements and estimates made in determining the fair values of the non-fnancial assets that are recognised and measured at fair value in the fnancial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classifed its fnancial assets and liabilities into the three levels prescribed under the accounting standards. An explanation of each level is provided as follows: - Level 1: The fair value of fnancial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for fnancial assets held by the Group is the current bid price. These instruments are included in level 1.

- Level 2: The fair value of fnancial instruments that are not traded in an active market (for example, over-the- counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specifc estimates. If all signifcant inputs required to fair value an instrument are observable, the instrument is included in level 2.

- Level 3: If one or more of the signifcant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

See Notes 6, 7 and 10 for details of fair value disclosures.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 57 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

4 Financial risk management (continued) 4.3 Fair value measurements and disclosures for fnancial and non-fnancial assets (continued) (ii) Valuation techniques used to determine level 3 fair values The Group obtains independent valuations for its investment properties at least annually and for its freehold land and buildings, classifed as property, plant and equipment, every fve years. At the end of each reporting period, the Directors update their assessment of the fair value of each property, taking into account the most recent independent valuations. The Directors determine a property’s value within a range of reasonable fair value estimates. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available the Directors consider information from a variety of sources including: 1) current prices in an active market for properties of diferent nature or recent prices of similar properties in less active markets, adjusted to refect those diferences

2) discounted cash fow projections based on reliable estimates of future cash fows

3) capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derived from an analysis of market evidence.

5 Segment information The Chief Operating Decision Maker (CODM) is the Chief Executive Ofcer (CEO). Management has determined the operating segments based on the reports reviewed by the CEO and the Board of One Caribbean Media Limited.

The CEO and the Board considers the business from both a geographic and Business Unit perspective. Geographically, management considers the performance of operating companies in Trinidad and Tobago and Barbados and has identifed three reportable segments of its business:

1. Media – This segment derives its revenue mainly from advertising services utilising television, print and radio media to advertising agents, government, corporate entities and individuals.

2. Information and Communications Technology (ICT) – This segment derives its revenue mainly from the sale of technology related and broadband services to corporate and individual customers.

3. Other – This segment derives its revenue mainly from wholesale distribution of appliances, assembly and installation of photovoltaic systems and renewable energy products; carries out energy audits and implements energy efciency strategies and property management.

The CEO and Board of Directors assesses the performance of the operating segments based on proft before taxation.

Page 58 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

5 Segment information (continued) The segment information provided for the reportable business segments is as follows:

31 December 2018 31 December 2017 Media ICT Other Group Media ICT Other Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue 330,641 40,603 22,525 393,769 366,847 45,743 29,587 442,177

Operating proft 42,293 11,494 (1,710) 52,077 60,554 15,442 1,367 77,363 Net impairment losses on fnancial assets (3,378) (823) (1,191) (5,392) 1,594 - 228 1,822 Impairment losses on other assets (3,135) - (8,760) (11,895) - - (7,000) (7,000) Dividend income 2,881 - - 2,881 1,191 - - 1,191 Interest income 2,542 - 12 2,554 3,093 - - 3,093 Finance costs (4,711) (1,421) (218) (6,350) (3,502) (1,506) (225) (5,233) Share of proft of associates and joint venture - 4,280 - 4,280 - 1,233 - 1,233 Proft before tax 36,492 13,530 (11,867) 38,155 62,930 15,169 (5,630) 72,469 Taxation (14,347) (2,589) (981) (17,917) (15,602) (3,867) (554) (20,023) Proft for the year 22,145 10,941 (12,848) 20,238 47,328 11,302 (6,184) 52,446

Group proft / (loss) attributable to: - Non-controlling interests (1,765) 3,123 (633) 725 79 4,386 225 4,690 - Owners of the parent 23,910 7,818 (12,215) 19,513 47,249 6,916 (6,409) 47,756 22,145 10,941 (12,848) 20,238 47,328 11,302 (6,184) 52,446

31 December 2018 31 December 2017 Media ICT Other Group Media ICT Other Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 16,909 2,415 1,301 20,625 16,179 1,722 2,063 19,964

Amortisation 1,907 1,061 64 3,032 1,951 398 64 2,413

Capital expenditure 31,097 3,531 367 34,995 24,760 3,679 398 28,837

Assets 700,308 142,781 111,242 954,331 719,752 143,089 109,342 972,183

Liabilities 205,501 24,094 8,756 238,351 198,300 31,153 7,399 236,852

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 59 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

5 Segment information (continued) The Trinidad operations are segmented into Media, ICT and Other as follows:

31 December 2018 31 December 2017 Media ICT * Other Trinidad Media ICT Other Trinidad $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue 205,523 40,603 17,937 264,063 230,554 45,743 17,854 294,151

Operating proft 35,114 11,494 1,497 48,105 44,514 15,442 769 60,725 Net impairment losses on fnancial assets (2,858) (823) (715) (4,396) 1,583 - 228 1,811 Impairment losses on other assets (3,135) - (8,760) (11,895) - - (7,000) (7,000) Dividend income 22 - - 22 81 - - 81 Interest income 77 - 12 89 108 - - 108 Finance costs (4,292) (1,421) (88) (5,801) (3,183) (1,506) (87) (4,776) Share of proft of associates and joint venture - 4,280 - 4,280 - 1,233 - 1,233 Proft before tax 24,928 13,530 (8,054) 30,404 43,103 15,169 (6,090) 52,182 Taxation (14,804) (2,589) (981) (18,374) (10,588) (3,867) (554) (15,009) Proft for the year 10,124 10,941 (9,035) 12,030 32,515 11,302 (6,644) 37,173

Group proft / (loss) attributable to: - Non-controlling interests 103 3,123 (633) 2,593 79 4,386 - 4,465 - Owners of the parent 10,021 7,818 (8,402) 9,437 32,436 6,916 (6,644) 32,708 10,124 10,941 (9,035) 12,030 32,515 11,302 (6,644) 37,173

31 December 2018 31 December 2017 Media ICT Other Trinidad Media ICT Other Trinidad $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 10,088 2,415 1,200 13,703 9,478 1,722 1,954 13,154

Amortisation 1,602 1,061 - 2,663 1,602 398 - 2,000

Capital expenditure 28,634 3,531 282 32,447 11,960 3,679 398 16,037

Assets 452,709 142,781 103,277 698,767 469,933 143,089 98,079 711,101

Liabilities 189,926 24,094 1,756 215,776 177,721 31,153 913 209,787

* Included in the ICT revenues of $40.6M is $2.1M relating to lease of equipment

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5 Segment information (continued) The Barbados operations are segmented into Media and Other as follows:

31 December 2018 31 December 2017 Media Other Barbados Media Other Barbados $’000 $’000 $’000 $’000 $’000 $’000

Revenue 125,118 4,588 129,706 136,293 11,733 148,026

Operating proft 7,179 (3,207) 3,972 16,040 598 16,638 Net impairment losses on fnancial assets (520) (476) (996) 11 - 11 Dividend income 2,859 - 2,859 1,110 - 1,110 Interest income 2,465 - 2,465 2,985 - 2,985 Finance costs (419) (130) (549) (319) (138) (457) Proft before tax 11,564 (3,813) 7,751 19,827 460 20,287 Taxation 457 - 457 (5,014) - (5,014) Proft for the year 12,021 (3,813) 8,208 14,813 460 15,273

Group proft / (loss) attributable to: - Non-controlling interests (1,868) - (1,868) - 225 225 - Owners of the parent 13,889 (3,813) 10,076 14,813 235 15,048 12,021 (3,813) 8,208 14,813 460 15,273

31 December 2018 31 December 2017 Media Other Barbados Media Other Barbados $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 6,821 101 6,922 6,701 109 6,810

Amortisation 305 64 369 349 64 413

Capital expenditure 2,463 85 2,548 12,800 - 12,800

Assets 247,599 7,965 255,564 249,819 11,263 261,082

Liabilities 15,575 7,000 22,575 20,579 6,486 27,065

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 61 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

5. Segment information (continued) The segment information provided for the reportable geographic segments is as follows:

31 December 2018 31 December 2017 Trinidad Barbados Group Trinidad Barbados Group $’000 $’000 $’000 $’000 $’000 $’000

Revenue 264,063 129,706 393,769 294,151 148,026 442,177

Operating proft 48,105 3,972 52,077 60,725 16,638 77,363 Net impairment losses on fnancial assets (4,396) (996) (5,392) 1,811 11 1,822 Impairment losses on other assets (11,895) - (11,895) (7,000) - (7,000) Dividend income 22 2,859 2,881 81 1,110 1,191 Interest income 89 2,465 2,554 108 2,985 3,093 Finance costs (5,801) (549) (6,350) (4,776) (457) (5,233) Share of proft of associates and joint venture 4,280 - 4,280 1,233 - 1,233 Proft before tax 30,404 7,751 38,155 52,182 20,287 72,469 Taxation (18,374) 457 (17,917) (15,009) (5,014) (20,023) Proft for the year 12,030 8,208 20,238 37,173 15,273 52,446

Group proft / (loss) attributable to: - Non-controlling interests 2,593 (1,868) 725 4,465 225 4,690 - Owners of the parent 9,437 10,076 19,513 32,708 15,048 47,756 12,030 8,208 20,238 37,173 15,273 52,446

31 December 2018 31 December 2017 Trinidad Barbados Group Trinidad Barbados Group $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 13,703 6,922 20,625 13,154 6,810 19,964

Amortisation 2,663 369 3,032 2,000 413 2,413

Capital expenditure 32,447 2,548 34,995 16,037 12,800 28,837

Assets 698,767 255,564 954,331 711,101 261,082 972,183

Liabilities 215,776 22,575 238,351 209,787 27,065 236,852

Page 62 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

6. Investment properties The Group’s investment properties are measured at cost. The Group holds commercial property in Trinidad.

2018 2017 $’000 $’000 At 1 January 65,540 67,180 Depreciation (820) (1,640) Impairment (Note 27) (2,860) - At 31 December 61,860 65,540

The investment properties consist of the following: Commercial Freehold Properties 40-42 Henry Street, Port of Spain 25,900 29,070 39 Dundonald Street, Port of Spain 35,960 36,470 61,860 65,540

(a) Accounting policy Investment properties refer to land or buildings held, whether by the owner or under a fnance lease, to earn rentals or for capital appreciation or both. Investment properties are initially measured at cost, including transaction costs.

Investment properties are treated as long-term and are stated at amortised cost, less impairment. The fair values of investment properties are disclosed in note (b) below. These are assessed using internationally accepted valuation methods, such as taking comparable properties as a guide to current market prices or by applying the discounted cash fow method.

Like property, plant and equipment, investment properties are depreciated at 2% per annum using the straight line method.

Investment properties cease recognition as investment property either when they have been disposed of or when they are permanently withdrawn from use and no future economic beneft is expected from their disposal. Gains or losses arising from retirement or disposal are determined as the diference between the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated statement of proft or loss in the period of the retirement or disposal.

Any impairment charges are also accounted for in the consolidated statement of proft or loss.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 63 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

6. Investment properties (continued) (b) The fair value of investment properties as at 31 December 2018 was $63,900,000. The following table summarises the quantitative information about the signifcant unobservable inputs used in recurring level 3 fair value measurements. See note 4.3 (ii) for the valuation techniques adopted.

Fair value at Relationship of Description 31-Dec-18 31-Dec-17 Unobservable Range of inputs unobservable inputs to $’000 $’000 inputs 2018 2017 fair value Discount rate 8% 8% The higher the discount rate Investment properties 63,900 67,500 and terminal yield, the lower Terminal yield 7.5% -10% 7% -9% the fair value

The Group’s investment properties were valued at 31 December 2018 by independent professional qualifed valuer, Brent Augustus & Associates Limited, Chartered Valuation Surveyors, who hold a recognised relevant professional qualifcation and have recent experience in the locations and segments of the investment properties valued.

At each fnancial reporting date the Finance department: • verifes all major inputs to the independent valuation report; • assesses property valuation movements when compared to the prior valuation report; • holds discussions with the independent valuator.

There were no transfers between levels during the year. Level 3 fair values have been derived using the Open Market Value Method. Evidence of arm’s length open market transactions of similar lands were analysed and the results applied to the subject lands after taking into consideration appropriate adjustments for location, size and other relevant factors. The most signifcant input into this valuation approach is future rental cash infows based on the actual location and quality of the properties and supported by the terms of any existing leases.

A 1% change in the rental rates would result in a change in the investment value of $640,373.

Page 64 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

7. Property, plant and equipment

Work Machinery in Land and and Progress Buildings Equipment Total $'000 $'000 $'000 $'000 At 1 January 2017 Cost or valuation 51,562 159,208 311,231 522,001 Accumulated depreciation - (11) (216,152) (216,163) Net book amount 51,562 159,197 95,079 305,838

Year ended 31 December 2017 Opening net book amount 51,562 159,197 95,079 305,838 Acquisition (Note 30) - 264 10,691 10,955 Additions 8,047 9,515 11,275 28,837 Transfers (8,316) 8,053 263 - Disposals - - (118) (118) Depreciation charge - (1,677) (16,647) (18,324) Closing net book amount 51,293 175,352 100,543 327,188

At 31 December 2017 Cost or valuation 51,293 177,704 333,125 562,122 Accumulated depreciation - (2,352) (232,582) (234,934) Net book amount 51,293 175,352 100,543 327,188

Year ended 31 December 2018 Opening net book amount 51,293 175,352 100,543 327,188 Additions 2,907 16,032 16,056 34,995 Transfers (35,338) - 35,338 - Disposals - - (97) (97) Depreciation charge - (1,732) (18,073) (19,805) Closing net book amount 18,862 189,652 133,767 342,281

At 31 December 2018 Cost or valuation 18,862 193,736 383,808 596,406 Accumulated depreciation - (4,084) (250,041) (254,125) Net book amount 18,862 189,652 133,767 342,281

The Group leases certain motor vehicles and equipment under operating lease arrangements. Lease rental of $392,546 (2017: $520,105) was expensed in cost of providing services.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 65 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

7. Property, plant and equipment (continued) (a) Accounting policy Land and buildings comprise mainly ofces, production facilities and warehouses. All plant and equipment are initially recorded at cost. Land and buildings are carried at fair value, based on valuations done by independent valuators every fve years less subsequent depreciation for buildings. Directors valuations are performed in the intervening period. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset.

All other plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefts associated with the item will fow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the consolidated statement of proft or loss during the fnancial period in which they are incurred.

Assets are depreciated on the following bases at rates estimated to allocate their cost or revalued amount to their residual values or the depreciable amounts of the assets’ estimated useful lives as follows:

Assets Basis Rate Freehold property straight line 2% Machinery and equipment include: - Studio and transmitter equipment straight line / reducing balance 10-20% - Plant, equipment and fxtures and fttings straight line / reducing balance 10-20% - Computers and peripherals straight line 10-20% - Motor vehicles straight line 20-25%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Land is not depreciated.

Plant and equipment are reviewed periodically for impairment. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

Gains and losses on disposal of plant and equipment are determined by reference to its carrying amount and are taken into account in determining proft before tax.

(b) Signifcant fair value estimate The land and buildings were last revalued on 31 December 2016 by independent professional qualifed valuers, Raymond & Pierre Chartered Valuation Surveyors and G.A.Farrell & Associates Chartered Valuation Surveyors.

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7. Property, plant and equipment (continued) (b) Signifcant fair value estimate (continued) The following table analyses the non-fnancial assets carried at fair value. The diferent levels of fair value measurements have been defned in Note 4.3.:

Fair value measurement using Quoted prices in active Signifcant other Signifcant markets for identical observable inputs unobservable assets (level 1) (level 2) inputs (level 3) $’000 $’000 $’000 As at 31 December 2018 Recurring fair value measurements - Land and buildings - - 189,652

Quoted prices in active Signifcant other Signifcant markets for identical observable inputs unobservable assets (level 1) (level 2) inputs (level 3) $’000 $’000 $’000 As at 31 December 2017 Recurring fair value measurements - Land and buildings - - 175,352

There were no transfers between levels during the year.

The Group’s management reviews the latest valuations performed by the independent valuators for fnancial reporting purposes. At the year end the fnance department: • verifes all major inputs to the independent valuation reports; • assesses property valuation movements when compared to the prior valuation reports; • holds discussions with the independent valuators.

The existing use is the highest and best to which the property could be put. The size and layout of the property was taken into consideration in the valuation. Based on the valuation the buildings appeared to be structurally sound and in fair to good decorative condition and assumed to be adequate and appropriate for a structure of its size, type and use.

Level 3 fair values of land has been derived using the Sales Comparison Approach. Sales prices of comparable land in close proximity are adjusted for diferences in key attributes such as property size. The most signifcant input into this valuation approach is price per square foot.

Level 3 fair value of buildings have been derived using the income approach. The income approach is one that provides an indication of market value by converting future cash fows to a single capital value. This approach was used due to the availability of rental and capitalisation information for comparable properties. The most signifcant judgments and estimates afecting the valuations include capitalisation rates and estimated rental values. Capitalisation rates varied between 9-9.5%.

(c) Depreciation charge Depreciation expense has been included in cost of providing services in the consolidated statement of proft or loss and other comprehensive income.

(d) Borrowing costs capitalised Included within the additions during the year is borrowing cost of $1,057,137.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 67 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

7. Property, plant and equipment (continued) (e) If land and buildings were stated on the historical cost basis, the amounts would be as follows:

2018 2017 $’000 $’000 Cost 209,526 193,493 Accumulated depreciation (34,961) (32,735) Net book value 174,565 160,758

(f) Capital commitments As at 31 December 2018, the Group has no capital expenditure commitments (2017 - $284,172).

8. Intangible assets Licences Customer and Intellectual related Goodwill Brands software property intangibles Total $’000 $’000 $’000 $’000 $’000 $’000 At 31 December 2016 Cost or valuation 60,889 10,810 26,600 1,980 - 100,279 Accumulated amortisation - (2,616) (5,445) (1,198) - (9,259) Net book amount 60,889 8,194 21,155 782 - 91,020

Year ended 31 December 2017 At beginning of the year 60,889 8,194 21,155 782 - 91,020 Acquisition (Note 32 b) 72,079 - - - 7,000 79,079 Additions - - 700 - - 700 Amortisation - (523) (1,477) (413) - (2,413) Impairment (Note 27) (7,000) - - - - (7,000) At end of the year 125,968 7,671 20,378 369 7,000 161,386

At 31December 2017 Cost or valuation 125,968 10,810 27,300 1,980 7,000 173,058 Accumulated amortisation - (3,139) (6,922) (1,611) - (11,672) Net book amount 125,968 7,671 20,378 369 7,000 161,386

Year ended 31 December 2018 At beginning of the year 125,968 7,671 20,378 369 7,000 161,386 Additions - - 350 - - 350 Amortisation - (523) (1,440) (369) (700) (3,032) Impairment (Note 27) (5,900) - - - - (5,900) At end of the year 120,068 7,148 19,288 - 6,300 152,804

At 31 December 2018 Cost or valuation 120,068 10,810 27,650 1,980 7,000 167,508 Accumulated amortisation - (3,662) (8,362) (1,980) (700) (14,704) Net book amount 120,068 7,148 19,288 - 6,300 152,804

Useful econmic life (years) - 20 10 5 10

Page 68 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

8. Intangible assets (continued) (a) Accounting policies Brands, licences and software and intellectual property are fair valued based on the open market basis, royalty method or multi-period excess earnings method as appropriate and subsequently measured at cost less amortisation. The amortisation expense is recorded in administrative expenses.

(i) Goodwill Goodwill arises on business combinations and represents the excess of the consideration transferred over the Group’s interest in net fair value of the net identifable assets, liabilities and contingent liabilities of the acquiree and the fair value of the non-controlling interest in the acquiree.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs, or groups of CGUs, that is expected to beneft from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating division level.

Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognised immediately as an expense and is not subsequently reversed.

(ii) Brands, licences and software, intellectual property and customer related intangibles Brands, licences and software, intellectual property and customer related intangibles are shown at fair value if acquired as part of a business combination. Subsequently they are shown at historical cost less accumulated amortization and impairment losses. These intangible assets are amortised on an individual basis over the estimated useful life of the intangible asset which is estimated between fve and twenty years.

(iii) Impairment of non- fnancial assets Intangible assets that have an indefnite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifable cash fows (cash-generating units). Non-fnancial assets other than goodwill that sufered impairment are reviewed for possible reversal of the impairment at each reporting date.

(b) The goodwill has been allocated to each cash generating unit as follows: 2018 2017 $’000 $’000 Basic Space Limited 3,875 3,875 Caribbean Communications Company Limited 25,876 25,876 Donald Dunne Holdings Limited 6,375 6,375 Green Dot Limited 72,079 72,079 Novo Media Limited 11,863 11,863 VL Limited - 5,900 120,068 125,968

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 69 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

8. Intangible assets (continued) (b) The recoverable amount of cash generating units is determined based on a value-in-use calculations. These calculations use pre-tax cash fow projections based on fnancial budgets and forecasts approved by management covering a fve-year period. The assumptions for budgeted gross margin, growth rates and pre-tax weighted average cost of capital are based upon past performance, economic conditions and expectations for market development. The weighted average growth rates used are consistent with the forecasts included in industry reports where available. The discount rates used refect specifc risk relating to the relevant segment of business. No terminal growth rate was used in the calculations. The key assumptions used for value-in-use calculations are as follows: Pre-tax Growth rate discount rate 2018 Media 5% - 17% 9% Distribution 1% - 5% 12.5% ICT 0% - 18% 10% -13.5%

2017 Media 5% - 20% 17% Distribution 1% - 15% 13.5% ICT 0% - 10% 17%

These key inputs and assumptions were tested for sensitivity by applying a reasonably possible change to those assumptions. Individually testing these rates for sensitivity, the break-even position would be an increase in the discount rate of between 2.25% and 5.5% and a reduction in future cash fows of between 11% and 20%. As at 31 December 2018, management does not foresee any changes to these rates materializing and as such do not expect that the CGUs carrying amount would be lower than its recoverable amount. The recoverable amount of this CGU would equal its carrying amount if the key assumptions were to change as follows:

2018 2017 From To From To Revenue growth rates - Media 5% to 17% -15% 5% to 20% 0% - ICT 0% to 18% -11% to -20% 0% to 10% -20%

Pre-tax discount rates - Media 9% 15% 17% 19% - ICT 10% to 13.5% 15% to 15.75% 17% 16.5% to 20%

9. Investments in associates and joint venture

2018 2017 Cumberland Cumberland Communi- Tobago Novo Tech- Communi- Tobago Novo Tech- cations Newspapers nologies cations Newspapers nologies Limited Limited Inc Total Limited Limited Inc Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Beginning of the year 1,032 3,135 56,605 60,772 989 3,135 55,759 59,883 Impairment (Note 27) - (3,135) - (3,135) - - - - Share of proft 62 - 4,218 4,280 51 - 1,182 1,233 Share of tax (Note15) (12) - (1,246) (1,258) (8) - (336) (344) End of the year 1,082 - 59,577 60,660 1,032 3,135 56,605 60,772

The Group’s interest in the associates and joint venture are accounted for using the equity method. The 50% shareholding in Cumberland Communications Limited does not constitute control as this is a joint venture arrangement.

Page 70 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

9. Investments in associates and joint venture (a) Accounting policy (i) Associates Associates are all entities over which the Group has signifcant infuence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. The Group’s interest in jointly controlled entities and associates is accounted for using the equity method of accounting and are initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of proft or loss on the investee after the acquisition. The Group’s investment in associates includes goodwill identifed at acquisition.

If the ownership interest in an associate is reduced but signifcant infuence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassifed to proft or loss where appropriate.

The Group’s share of post-acquisition proft or loss is recognised in the consolidated statement of proft or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group’s share of losses equals or exceeds its interest including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate. Dividends received during the year are eliminated on consolidation.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate or joint venture is impaired. If this is the case, the Group calculates the amount of the impairment as the diference between the recoverable amount and its carrying value.

Profts and losses resulting from upstream and downstream transactions between the Group and its associate are recognised in the Group’s fnancial statements only to the extent of unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates and joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.

Dilution gains and losses arising in investments in associates and joint ventures are recognised in the consolidated statement of proft or loss.

(ii) Joint arrangements The Group has applied IFRS 11 to all joint arrangements. Under IFRS 11, investments in joint arrangements are classifed as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Joint ventures are accounted for using the equity method.

Under the equity method of accounting, interests in joint ventures are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profts or losses and movements in other comprehensive income. When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint ventures), the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 71 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

9. Investments in associates and joint venture (continued) (b) The Group’s share of the results of its associate and joint venture, which are unlisted, and its share of the assets and liabilities are as follows: Proft % Country of before interest incorporation Assets Liabilities Revenue tax held 2018 $’000 $’000 $’000 $’000 Cumberland Communications Limited Trinidad and Tobago 1,767 706 182 62 50% Novo Technologies Inc. Trinidad and Tobago 22,547 2,938 3,568 4,218 40% 24,314 3,644 3,750 4,280

2017 Tobago Newspapers Limited Trinidad and Tobago 3,667 252 - - 27% Cumberland Communications Limited Trinidad and Tobago 1,730 719 182 51 50% Novo Technologies Inc. Trinidad and Tobago 22,547 2,938 3,568 1,182 40% 27,944 3,909 3,750 1,233

There are no contingent liabilities or capital commitments for the associates and joint venture.

10. Financial assets

2018 2017 $’000 $’000 Fair value through other comprehensive income Quoted securities 1,504 1,640 Unquoted securities 13,819 3,146 15,323 4,786 At amortised costs Debt securities 5,654 9,509 Term deposits - Non-current portion - 387 Loans to corporate entities 855 855 6,509 10,751 (a) Accounting policies In accordance with IFRS 9 (i) Classifcation From 1 January 2018, the Group classifes its fnancial assets in the following measurement categories: • those to be measured subsequently at fair value through OCI, and • those to be measured at amortised cost.

The classifcation depends on the entity’s business model for managing the fnancial assets and the contractual terms of the cash fows.

For assets measured at fair value, gains and losses will be recorded in OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

The Group reclassifes debt investments when and only when its business model for managing those assets changes.

(ii) Recognition and derecognition Regular way purchases and sales of fnancial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash fows from the fnancial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

Page 72 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

10. Financial assets (continued) (a) Accounting policies (continued) In accordance with IFRS 9 (continued) (iii) Measurement At initial recognition, the Group measures a fnancial asset at its fair value plus, in the case of a fnancial asset not at fair value through proft or loss (FVPL), transaction costs that are directly attributable to the acquisition of the fnancial asset. Transaction costs of fnancial assets carried at FVPL are expensed in proft or loss.

Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash fow characteristics of the asset. The Group measures its debt instruments at amortised cost.

Amortised cost: Assets that are held for collection of contractual cash fows where those cash fows represent solely payments of principal and interest are measured at amortised cost. Interest income from these fnancial assets is included in interest income using the efective interest rate method. Any gain or loss arising on derecognition is recognised directly in proft or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the statement of proft or loss.

Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassifcation of fair value gains and losses to proft or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in proft or loss as other income when the Group’s right to receive payments is established. In accordance with IAS 39 (i) Classifcation The Group classifes its fnancial assets in the following categories: ‘available for sale’ and ‘loans and receivables’. The classifcation depends on the purpose for which the fnancial assets were acquired. Management determines the classifcation of its fnancial assets at initial recognition.

(a) Available-for-sale Available-for-sale fnancial assets are non-derivatives that are either designated in this category or not classifed in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date.

(b) Loans and receivables Loans and receivables are non-derivative fnancial assets with fxed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classifed as non-current assets. Loans and receivables comprise other fnancial assets, ‘trade receivables’, ‘sundry debtors’, ‘cash and cash equivalents’ and term deposits in the balance sheet.

(ii) Recognition and measurement Regular purchases and sales of fnancial assets are recognised on the trade-date – the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all fnancial assets not carried at fair value through proft or loss. Financial assets are derecognised when the rights to receive cash fows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Available-for- sale fnancial assets are subsequently carried at fair value. Loans and receivables are subsequently carried at amortised cost using the efective interest method.

Changes in the fair value of monetary and non-monetary securities classifed as available-for-sale are recognised in other comprehensive income.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 73 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

10. Financial assets (continued) (a) Accounting policies (continued) In accordance with IAS 39 (continued) (ii) Recognition and measurement (continued) When securities classifed as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in the consolidated statement of proft or loss as ‘gains and losses from investment securities’. Interest on available-for-sale securities calculated using the efective interest method is recognised in the consolidated statement of proft or loss as part of ‘Interest income’. Dividends on available-for- sale equity instruments are recognised in the consolidated statement of proft or loss when the Group’s right to receive payments is established as ‘Dividend income’.

Interest on available-for-sale securities calculated using the efective interest method is recognised in the consolidated statement of proft or loss as part of interest income.

Ofsetting fnancial instruments Financial assets and liabilities are ofset and the net amount reported in the balance sheet when there is a legally enforceable right to ofset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right is not contingent on future events but is enforceable in the normal course of business and in the event of default, insolvency and bankruptcy of the company or the counterparty.

Impairment of fnancial assets (In accordance with IAS 39) (i) Assets carried at amortised cost The Group assesses at the end of each reporting period whether there is objective evidence that a fnancial asset or group of fnancial assets is impaired. A fnancial asset or a group of fnancial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash fows of the fnancial asset or group of fnancial assets that can be reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing signifcant fnancial difculty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other fnancial reorganisation, and where observable data indicate that there is a measurable decrease in the estimated future cash fows, such as changes in arrears or economic conditions that correlate with defaults.

For loans and receivables category, the amount of the loss is measured as the diference between the asset’s carrying amount and the present value of estimated future cash fows (excluding future credit losses that have not been incurred) discounted at the fnancial asset’s original efective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the consolidated statement of proft or loss.

If a loan or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current efective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is recognised in the consolidated statement of proft or loss.

Page 74 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 ONE CARIBBEAN MEDIA LIMITED YearNotes ended to 31 the December consolidated 2018 fnancial statements Notes(These fnancial to the statements consolidated are expressed f innancial Trinidad and statements Tobago dollars) (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars) 10. Financial assets (continued) (a) Accounting policies (continued) 10. Financial assets (continued) Impairment of fnancial assets (continued) (a) Accounting policies (continued) (ii) Assets classifed as available- for- sale Impairment of fnancial assets (continued) The Group assesses at the end of each reporting period whether there is objective evidence that a fnancial (ii) Assets classifed as available- for- sale asset or a group of fnancial assets is impaired. For debt securities, the Group uses the criteria referred to in (a) The Group assesses at the end of each reporting period whether there is objective evidence that a fnancial above. In the case of equity investments classifed as available-for-sale, a signifcant or prolonged decline in asset or a group of fnancial assets is impaired. For debt securities, the Group uses the criteria referred to in (a) the fair value of the security below its cost is also evidence that the assets are impaired. If any such evidence above. In the case of equity investments classifed as available-for-sale, a signifcant or prolonged decline in exists for available-for-sale fnancial assets, the cumulative loss – measured as the diference between the fair value of the security below its cost is also evidence that the assets are impaired. If any such evidence the acquisition cost and the current fair value, less any impairment loss on that fnancial asset previously exists for available-for-sale fnancial assets, the cumulative loss – measured as the diference between recognised in proft or loss – is removed from other comprehensive income and recognised in proft or loss. the acquisition cost and the current fair value, less any impairment loss on that fnancial asset previously Impairment losses recognised in the consolidated statement of proft or loss on equity instruments are not recognised in proft or loss – is removed from other comprehensive income and recognised in proft or loss. reversed through the consolidated statement of proft or loss. If, in a subsequent period, the fair value of a Impairment losses recognised in the consolidated statement of proft or loss on equity instruments are not debt instrument classifed as available-for-sale increases and the increase can be objectively related to an reversed through the consolidated statement of proft or loss. If, in a subsequent period, the fair value of a event occurring after the impairment loss was recognised in proft or loss, the impairment loss is reversed debt instrument classifed as available-for-sale increases and the increase can be objectively related to an through the consolidated statement of proft or loss. event occurring after the impairment loss was recognised in proft or loss, the impairment loss is reversed through the consolidated statement of proft or loss. Refer to Note 4.1(b) for impairment policy on adoption of IFRS 9. Refer to Note 4.1(b) for impairment policy on adoption of IFRS 9. (b) Interest on short term deposits is as follows: The non-current portion of the term deposits attract interest between 0.75% and 2% (2017 – 2.0% and 4.25%) and (b) Interest on short term deposits is as follows: will mature between January 2019 and March 2019 (2017: January 2018 and March 2018). The non-current portion of the term deposits attract interest between 0.75% and 2% (2017 – 2.0% and 4.25%) and will mature between January 2019 and March 2019 (2017: January 2018 and March 2018). The current portion of the term deposits attract interest between 1.5% and 3.25% (2017 – 2.25% and 2.55%). These deposits with maturities in excess of 90 days but less than one year are placed with leading local and regional The current portion of the term deposits attract interest between 1.5% and 3.25% (2017 – 2.25% and 2.55%). These fnancial institutions. deposits with maturities in excess of 90 days but less than one year are placed with leading local and regional fnancial institutions. (c) The movement in the fnancial assets at fair value through OCI: (c) The movement in the fnancial assets at fair value through OCI: 2018 2017 $’000 $’000 2018 2017 $’000 $’000 At beginning of year 4,786 4,798 Gain on revaluation of investments on adoption of IFRS 9 10,537 129 At beginning of year 4,786 4,798 At end of year 15,323 4,786 Gain on revaluation of investments on adoption of IFRS 9 10,537 129 At end of year 15,323 4,786 Included in unquoted securities is a 20% holding in Guyana Publications Limited. The Group has not equity accounted for this investment because management has no signifcant infuence over the operations. The Group Included in unquoted securities is a 20% holding in Guyana Publications Limited. The Group has not equity also does not have the ability to have representation on the Board of Guyana Publications Limited. accounted for this investment because management has no signifcant infuence over the operations. The Group also does not have the ability to have representation on the Board of Guyana Publications Limited. 10. Financial assets (continued) Financial assets are denominated in the following currencies: 10. Financial assets (continued) Financial assets are denominated in the following currencies: 2018 2017 $’000 $’000 2018 2017 Currency $’000 $’000 TT$ 999 999 Currency BDS$ 20,833 14,538 TT$ 999 999 21,832 15,537 BDS$ 20,833 14,538 21,832 15,537

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 75

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 75 ONEONEONE CARIBBEAN CARIBBEAN CARIBBEAN MEDIA MEDIA MEDIA LIMITED LIMITED LIMITED YearYearYear ended ended ended 31 December31 31 December December 2018 2018 2018 NotesNotesONENotes CARIBBEAN to to tothe thethe consolidated MEDIA consolidatedconsolidated LIMITED fnancial ffnancialnancial statements statementsstatements (These(TheseYear(These f endednancial ffnancialnancial 31 statements December statements are 2018 expressedare are expressed expressed in Trinidad in in Trinidad Trinidad and and Tobago and Tobago Tobago dollars) dollars) dollars) Notes to the consolidated fnancial statements 10. (These10. Financial fFinancialnancial assets statements assets (continued) (continued) are expressed in Trinidad and Tobago dollars) (d) (d) TheThe table table below below summarizes summarizes available-for-sale available-for-sale fnancial fnancial assets assets carried carried at fair at fairvalue value by valuation by valuation method. method. 10. Financial assets (continued) Level Level 1 1 Level Level ONE2 2 CARIBBEAN Level Level 3 MEDIA 3 LIMITEDTotal Total (d) The table below summarizes available-for-sale fnancial assets carried at fair value by valuation method. $’000$’000 $’000 $’000Year ended $’000 31 $’000 December $’000 2018 $’000 2018 2018 Level 1 Level 2 Level 3 Total AssetsAssets Notes to the consolidated fnancial statements $’000 $’000(These fnancial $’000 statements are$’000 expressed in Trinidad and Tobago dollars) Available-for-sale2018Available-for-sale fnancial fnancial assets assets - quoted - quoted securities securities 1,504 1,504 - - - - 1,504 1,504 Available-for-saleAssetsAvailable-for-sale fnancial fnancial assets assets - unquoted - unquoted securities securities - - - - 13,819 13,819 13,819 13,819 Available-for-sale fnancial assets - quoted securities 1,504 1,5041,504 10. - -- Financial 13,819 13,819 assets - 15,32315,819(continued) 15,819 1,504 2017Available-for-sale2017 fnancial assets - unquoted securities - - (d) 13,819The table below 13,819 summarizes available-for-sale fnancial assets carried at fair value by valuation method. Assets Assets 1,504 - 13,819 15,819 Level 1 Level 2 Level 3 Total Available-for-sale2017Available-for-sale fnancial fnancial assets assets - quoted - quoted securities securities 1,640 1,640 - - - - 1,6521,640 1,652 $’000 $’000 $’000 $’000 Available-for-saleAssetsAvailable-for-sale fnancial fnancial assets assets - unquoted - unquoted securities securities - - - - 3,146 3,146 3,146 3,146 2018 Available-for-sale fnancial assets - quoted securities 1,640 1,6401,640 - -- 3,146 3,146 - 4,7984,786 1,6524,798 Assets Available-for-sale fnancial assets - unquoted securities - - 3,146 3,146 Available-for-sale fnancial assets - quoted securities 1,504 - - 1,504 There There were were no transfersno transfers between between levels levels 1, 2 1,and 2 and 3 during 3 during the theyear. year. See See note note 1,640 4.3 (i)4.3 for (i) detailsfor details -of fair of fairvalue 3,146value hierarchy. hierarchy. 4,798 Available-for-sale fnancial assets - unquoted securities - - 13,819 13,819 11 11 LoansLoans and and receivables receivables 1,504 - 13,819 15,819 There were no transfers between levels 1, 2 and 3 during the year. See note 4.3 (i) for details of fair value hierarchy. 20182018 201620162017 11 Loans and receivables CurrentCurrent Non-current Non-current TotalTotal Current Current Non-current Non-currentAssets TotalTotal $’000 $’000 $’000 $’0002018 $’000 $’000 $’000 $’000 $’000 $’0002016Available-for-sale $’000 $’000 f nancial assets - quoted securities 1,640 - - 1,652 Current Non-current Total Current Non-currentAvailable-for-sale Total fnancial assets - unquoted securities - - 3,146 3,146 Loans Loans 3,712 $’000 3,712 13,692 13,692$’000 17,404 17,404$’000 2,935 $’000 2,935 15,500 15,500$’000 18,435 18,435$’000 1,640 - 3,146 4,798 Provision Provision for impairmentfor impairment (2,784) (2,784) - - (2,784)(2,784) (280) (280) - - (280) (280) Loans 928 3,712928 13,692 13,69213,692 14,620 17,40414,620 2,655 2,9352,655 15,500 15,50015,500There were 19,155 18,435 19,15518,155no transfers between levels 1, 2 and 3 during the year. See note 4.3 (i) for details of fair value hierarchy. Provision for impairment (2,784) - (2,784) (280) - (280) 11 Loans and receivables 928 13,692 14,620 2,655 15,500 19,155 TheThe Group Group has hasadopted adopted IFRS IFRS 9 Financial 9 FinancialFinancial Instruments Instruments and and all itsall relatedits related amendments amendments efective efective 1 January 1 January 2018. 2018. This This 2018 2016 has hasresulted resulted in changes in changes in accounting in accounting policies policies and and adjustments adjustments to the to theamounts amounts previously previously recognised recognised in the in the fnancial fnancial Current Non-current Total Current Non-current Total statements.Thestatements. Group As has permitted As adoptedpermitted by IFRS the by thetransitional9 Financial transitional provisionsInstruments provisions of andIFRS of IFRS all9, theits 9, relatedtheGroup Group electedamendments elected not notto restatee tofective restate comparative 1 comparativeJanuary 2018.fgures. fgures. This $’000 $’000 $’000 $’000 $’000 $’000 AnyhasAny adjustments resulted adjustments in to changes the to thecarrying incarrying accounting amounts amounts policiesof f ofnancial f nancialand assets adjustments assets and and liabilities to liabilities the amountsat the at thedate previously date of transition of transition recognised were were recognised in recognised the fnancial in in retainedstatements.retained earnings earnings As of permitted the of thecurrent current by period.the period.transitional provisions of IFRS 9, the Group elected not to restate comparativeLoans fgures. 3,712 13,692 17,404 2,935 15,500 18,435 AnyThe adoptionadjustments of IFRS to the 9 has carrying resulted amounts in changes of fnancial in the accounting assets and policiesliabilities for at recognition, the date of transitionclassifcation Provisionwere and recognised measure for impairment- in (2,784) - (2,784) (280) - (280) TheretainedmentThe loans loans of and fearningsnancial and receivables receivables assets of the were and current were previouslyfnancial previouslyperiod. liabilities included included and in currentimpairment in current trade trade of receivables fnancial receivables assets. and and non-current non-current trade trade receivables. receivables. 928 13,692 14,620 2,655 15,500 19,155 ReferRefer to Note to Note 4.1 (b)4.1 b(b) for b thefor theprovision provision for impairmentfor impairment of the of theloans loans and and receivables receivables The loans and receivables were previously included in current trade receivables and non-current tradeThe receivables. Group has adopted IFRS 9 Financial Instruments and all its related amendments efective 1 January 2018. This has resulted in changes in accounting policies and adjustments to the amounts previously recognised in the fnancial Refer to Note 4.1 (b) b for the provision for impairment of the loans and receivables. statements. As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative fgures. AccountingAccounting policy policy Any adjustments to the carrying amounts of fnancial assets and liabilities at the date of transition were recognised in TheThe loans loans relate relate to products to products sold sold to customers to customers of Innogen of Innogen Technologies Technologies Inc Incwith with a repayment a repayment plan plan for overfor over one one year. year. retained earnings of the current period. TheAccountingThe Nation Nation Group Grouppolicy policy provides provides fnancing fnancing to these to these customers customers at an at interest an interest rate rate of 7.75% of 7.75% per perregistered registered bill ofbill sale of sale over over the the soldThesold product loans product asrelate collateral as collateralto products security security sold and toand obtains customers obtains an assignment an of assignment Innogen of Technologies the of thehomeowner’s homeowner’s Inc. with insurance ainsurance repayment over over the plan thesold for sold product. over product. one year. The loans and receivables were previously included in current trade receivables and non-current trade receivables. The Nation Group provides fnancing to these customers at an interest rate of 7.75% per registered bill of sale over the ThesoldThe Group productGroup has hasadopted as collateraladopted IFRS IFRSsecurity 9 Financial 9 Financial and obtainsInstruments Instruments an assignment and and all itsall of relatedits the related homeowner’s amendments amendments insurance efective efective over 1 January 1the January sold 2018. product. 2018. This This has hasresulted resulted in changes in changes in accounting in accounting policies policies and and adjustments adjustments to the to theamounts amounts previously previously recognised recognisedRefer in the in to thef Notenancial fnancial 4.1 (b) b for the provision for impairment of the loans and receivables statements.Thestatements. Group As has permitted As adoptedpermitted by IFRS the by thetransitional9 FinancialFinancial transitional provisionsInstruments provisions of andIFRS of IFRS all9, theits 9, relatedtheGroup Group electedamendments elected not notto restatee tofective restate comparative 1 comparativeJanuary 2018.fgures. fgures. This AnyhasAny adjustments resulted adjustments in to changes the to thecarrying incarrying accounting amounts amounts policiesof f ofnancial f nancialand assets adjustments assets and and liabilities to liabilities the amountsat the at thedate previously date of transition of transition recognised were were recognised in recognised the fnancial in in Accounting policy retainedstatements.retained earnings earnings As of permitted the of thecurrent current by period.the period.transitional provisions of IFRS 9, the Group elected not to restate comparative fgures. The loans relate to products sold to customers of Innogen Technologies Inc with a repayment plan for over one year. Any adjustments to the carrying amounts of fnancial assets and liabilities at the date of transition were recognised in The Nation Group provides fnancing to these customers at an interest rate of 7.75% per registered bill of sale over the TheretainedThe adoption adoption earnings of IFRS of IFRS 9 of has the9 hasresulted current resulted in period. changes in changes in the in theaccounting accounting policies policies for recognition, for recognition, classi classifcationfcation and and measurement measurement of fofnancial fnancial assets assets and and fnancial fnancial liabilities liabilities and and impairment impairment of f ofnancial fnancial assets. assets. sold product as collateral security and obtains an assignment of the homeowner’s insurance over the sold product. The adoption of IFRS 9 has resulted in changes in the accounting policies for recognition, classifcation and measurement The Group has adopted IFRS 9 Financial Instruments and all its related amendments efective 1 January 2018. This ReferofRefer tofnancial Note to Note 4.1(b) assets 4.1(b) for and impairmentfor f impairmentnancial liabilities policy policy on and adoptionon impairmentadoption of IFRS of ofIFRS 9. f nancial 9. assets. has resulted in changes in accounting policies and adjustments to the amounts previously recognised in the fnancial statements. As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative fgures. Refer to Note 4.1(b) for impairment policy on adoption of IFRS 9. Any adjustments to the carrying amounts of fnancial assets and liabilities at the date of transition were recognised in retained earnings of the current period.

Page Page Page 76 | 76 ONE76 | | ONECARIBBEANONE CARIBBEAN CARIBBEAN MEDIA MEDIA MEDIA LIMITED LIMITED LIMITED | ANNUAL || ANNUALANNUAL REPORT REPORTREPORT 2018 20182018 The adoption of IFRS 9 has resulted in changes in the accounting policies for recognition, classifcation and measurement of fnancial assets and fnancial liabilities and impairment of fnancial assets. Page 76 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Refer to Note 4.1(b) for impairment policy on adoption of IFRS 9.

Page 76 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars)

12 Trade receivables 2018 2017 $’000 $’000

Trade receivables 124,548 139,780 Provision for impairment (40,049) (24,684) 84,499 115,096

The Group has adopted IFRS 9 FinancialFinancial InstrumentsInstruments and all its related amendments efective 1 January 2018. This has resulted in changes in accounting policies and adjustments to the amounts previously recognised in the fnancial statements. As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative fgures. Any adjustments to the carrying amounts of fnancial assets and liabilities at the date of transition were recognised in Retainedretained earningsEarnings of the current period.

The adoption of IFRS 9 has resulted in changes in the accounting policies for recognition, classifcation and measurement of fnancial assets and fnancial liabilities and impairment of fnancial assets.

Refer to Note 4.1(b) a for the movement on the provision for impairment of trade receivables.

Accounting policy policy (a) Measurement and classifcation (IAS 39 2017 and IFRS 9 2018) Trade receivables are amounts due from customers for services performed in the ordinary course of business. If collection is expected in one year or less, they are classifed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value and subsequently at amortised cost less provision for impairment.

Assets carried at amortised cost The Group assesses at the end of each reporting period whether there is objective evidence that a fnancial asset or group of fnancial assets is impaired. A fnancial asset or a group of fnancial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash fows of the fnancial asset or group of fnancial assets that can be reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing signifcant fnancial difculty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other fnancial reorganisation, and where observable data indicate that there is a measurable decrease in the estimated future cash fows, such as changes in arrears or economic conditions that correlate with defaults.

For loans and receivables category, the amount of the loss is measured as the diference between the asset’s carrying amount and the present value of estimated future cash fows (excluding future credit losses that have not been incurred) discounted at the fnancial asset’s original efective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in the consolidated statement of proft or loss.

(b) Impairment Accounting policy for impairment of trade receivables (IFRS 9 2018) The Group applies specifc provisions for higher risk accounts where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.

The Group applies the IFRS 9 simplifed approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

All other non-specifc accounts have been grouped based on shared credit risk characteristics and a loss rate derived using a provision matrix. Scaled loss rates were then calculated based on historical payment profles. The loss rates were adjusted to incorporate forward-looking information and then applied to the diferent aging buckets as of the balance sheet date.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 77 ONE CARIBBEAN MEDIA LIMITED ONEYear CARIBBEANended 31 December MEDIA LIMITED 2018 Year ended 31 December 2018 Notes to the consolidated fnancial statements Notes(These fnancial to the statements consolidated are expressed f innancial Trinidad and statements Tobago dollars) (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars)

12. Trade receivables (continued) 12. Trade receivables (continued) Accounting policy policy (continued) (continued) Accounting policy (continued) (b)(b) ImpairmentImpairment (continued) (continued) (b) Impairment (continued) Previous accountingaccounting policy policy for for impairment impairment of of trade trade receivables receivables (IAS (IAS 39 2017)39 2017) PreviousA provision accounting for impairment policy forof tradeimpairment and other of trade receivables receivables is established (IAS 39 2017) where there is objective evidence that the A provision for impairment of trade and other receivables is established where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Trade receivables Groupthat are will less not than be 2able months to collect past due all amounts are not considered due according impaired. to the Payments original terms on invoices of receivables. are due 30 Trade days receivables after issue. that are less than 2 months past due are not considered impaired. Payments on invoices are due 30 days after issue. The creation and release of provision for impaired receivables have been included in ‘administrative expenses’ in Thethe statementcreation and of releaseproft or of loss provision and other for impaired comprehensive receivables income. have Signibeenf includedcant fnancial in ‘administrative difculties of expenses’ the debtor, in the statement of proft or loss and other comprehensive income. Signifcant fnancial difculties of the debtor, probability that the debtor will enter bankruptcy or fnancial reorganisation, and default or delinquency in payments probabilityare considered that the indicators debtor will that enter the tradebankruptcy receivables or fnancial are impaired. reorganisation, The carrying and default amount or delinquency of the asset in ispayments reduced are considered indicators that the trade receivables are impaired. The carrying amount of the asset is reduced throughthrough thethe useuse ofof anan allowanceallowance account,account, andand thethe amountamount ofof thethe lossloss isis recognisedrecognised inin thethe statementstatement ofof proproftt oror lossloss throughand other the comprehensive use of an allowance income account, within andadministrative the amount expenses. of the loss When is recognised a receivable in the is statementuncollectible, of pro it isf twritten or loss and other comprehensive income within administrative expenses. When a receivable is uncollectible, it is written of againstagainst thethe allowanceallowance accountaccount forfor tradetrade receivables.receivables. SubsequentSubsequent recoveriesrecoveries ofof amountsamounts previouslypreviously writtenwritten oof oaref againstcredited the against allowance administrative account for expenses trade receivables. in the statement Subsequent of prof trecoveries or loss and of other amounts comprehensive previously writtenincome. of are credited against administrative expenses in the statement of proft or loss and other comprehensive income. The expected loss rates are based on the payment proflesles ofof salessales overover aa periodperiod ofof 3636 monthsmonths beforebefore 3131 DecemberDecember The2018 expected and the losscorresponding rates are based historical on the credit payment losses pro experiencedfles of sales overwithin a period this period. of 36 months The historical before 31loss December rates are 2018 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to refect current and forward-looking macroeconomic factors afecting the ability of the customers to adjustedsettle the to receivables. refect current and forward-looking macroeconomic factors afecting the ability of the customers to settle the receivables. On that basis, the loss allowance as at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) was determined Onfor thattrade basis, receivables. the loss allowance as at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) was determined for trade receivables. The Group does not hold any collateral as security for current trade receivables. The Group does not hold any collateral as security for current trade receivables. 13 Sundry debtors and prepayments 13 Sundry debtors and prepayments 2018 2017 2018 2017 $’000 $’000 Sundry debtors 19,794$’000 20,024$’000 Sundry debtors 19,794 20,024 Provision for impairment (3,764)(3,764) (3,196)(3,196) Provision for impairment 16,030(3,764) 16,828(3,196) 16,030 16,828 Prepayments 5,2705,270 5,0285,028 Prepayments 21,300 5,270 21,856 5,028 21,300 21,856 Movement on the Group’s provision for impairment of sundry debtors is as follows: Movement on the Group’s provision for impairment of sundry debtors is as follows: At beginning of the year 3,1963,196 2,6902,690 AtIncrease beginning in provision of the year for impairment 3,196 568 2,690 506 Increase in provision for impairment 568 506 At end of the year 3,7643,764 3,1963,196 At end of the year 3,764 3,196 There is no concentration with respect to credit risk. As at 31 December 2018, sundry debtors of $16,029,085 (2017 - $ There is no concentration with respect to credit risk. As at 31 December 2018, sundry debtors of $16,029,085 (2017 - $ 16,827,957) were fully performing. (2017-$16,827,957)16,827,957) were fully were performing. fully performing. 14 Deferred programming 14 Deferred programming 2018 2017 2018 2017 $’000 $’000 Opening balance $’000 5,225 $’000 3,202 Opening balance 5,225 3,202 New contracts 2,0422,042 6,2786,278 New contracts 2,0427,267 6,2789,480 7,267 9,480 Usage (3,877)(3,877) (4,255)(4,255) Usage (3,877) 3,390 (4,255) 5,225 3,390 5,225 Current portion (1,792)(1,792) (3,860)(3,860) CurrentNon-current portion portion (1,792) 1,598 (3,860) 1,365 Non-current portion 1,598 1,365 Accounting policy policy Accounting policy Deferred programming is measured at cost less amortization based on usage. It represents programming contracted but Deferrednot yet broadcasted. programming The is measuredcost of programmes at cost less is amortization expensed as basedthey are on broadcasted. usage. It represents programming contracted but not yet broadcasted. The cost of programmes is expensed as they are broadcasted.

Page 78 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Page 78 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONEONE CARIBBEAN CARIBBEAN MEDIA MEDIA LIMITED LIMITED YearYear ended ended 31 December 31 December 2018 2018 NotesNotes to tothe the consolidated consolidated fnancial fnancial statements statements (These(These fnancial fnancial statements statements are expressedare expressed in Trinidad in Trinidad and andTobago Tobago dollars) dollars)

12. 12. TradeTrade receivables receivables (continued) (continued) AccountingAccounting policy policy (continued) (continued) (b) (b) ImpairmentImpairment (continued) (continued) PreviousPrevious accounting accounting policy policy for impairment for impairment of trade of trade receivables receivables (IAS (IAS 39 2017) 39 2017) A provisionA provision for impairment for impairment of trade of trade and andother other receivables receivables is established is established where where there there is objective is objective evidence evidence that that the the GroupGroup will willnot notbe able be able to collect to collect all amounts all amounts due due according according to the to theoriginal original terms terms of receivables. of receivables. Trade Trade receivables receivables thatthat are lessare lessthan than 2 months 2 months past past due due are notare notconsidered considered impaired. impaired. Payments Payments on invoices on invoices are dueare due 30 days 30 days after after issue. issue. The Thecreation creation and andrelease release of provision of provision for impairedfor impaired receivables receivables have have been been included included in ‘administrative in ‘administrative expenses’ expenses’ in in the thestatement statement of pro of fprot orf tloss or lossand andother other comprehensive comprehensive income. income. Signi Signifcantfcant fnancial fnancial dif dicultiesfculties of the of thedebtor, debtor, probabilityprobability that that the debtorthe debtor will enterwill enter bankruptcy bankruptcy or f nancialor fnancial reorganisation, reorganisation, and anddefault default or delinquency or delinquency in payments in payments are are considered considered indicators indicators that that the the trade trade receivables receivables are areimpaired. impaired. The The carrying carrying amount amount of the of the asset asset is reduced is reduced throughthrough the usethe useof an of allowance an allowance account, account, and andthe amountthe amount of the of lossthe lossis recognised is recognised in the in statementthe statement of pro of fprot orf losst or loss and andother other comprehensive comprehensive income income within within administrative administrative expenses. expenses. When When a receivable a receivable is uncollectible, is uncollectible, it is itwritten is written of againstof against the theallowance allowance account account for tradefor trade receivables. receivables. Subsequent Subsequent recoveries recoveries of amounts of amounts previously previously written written of of are creditedare credited against against administrative administrative expenses expenses in the in statementthe statement of pro of fprot orf tloss or lossand andother other comprehensive comprehensive income. income.

The Theexpected expected loss lossrates rates are basedare based on the on paymentthe payment pro fprolesf ofles sales of sales over over a period a period of 36 of months 36 months before before 31 December 31 December 20182018 and andthe thecorresponding corresponding historical historical credit credit losses losses experienced experienced within within this thisperiod. period. The Thehistorical historical loss lossrates rates are are adjustedadjusted to re tof ectref currentect current and andforward-looking forward-looking macroeconomic macroeconomic factors factors afecting afecting the theability ability of the of thecustomers customers to to ONE CARIBBEAN MEDIA LIMITED ONE CARIBBEANsettle MEDIAsettle the receivables.the LIMITED receivables. Year ended 31 December 2018 Year ended 31 December 2018 Notes to the consolidated fnancial statements Notes toOn the thatOn consolidated that basis, basis, the lossthe lossallowance allowance fnancial as at as 31 at December 31 statements December 2018 2018 and and1 January 1 January 2018 2018 (on adoption(on adoption of IFRS of IFRS 9) was 9) wasdetermined determined (These fnancial statements are expressed in Trinidad and Tobago dollars) (These fnancialfor statements tradestatementsfor trade receivables. receivables. are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars) The TheGroup Group does does not nothold hold any anycollateral collateral as security as security for current for current trade trade receivables. receivables. 12. Trade receivables (continued) 15 Taxation Accounting policy (continued) 13 13 Sundry(a)Sundry debtorsTaxation debtors and charge and prepayments prepayments (b) Impairment (continued) 20182018 2017 2017 Previous accounting policy for impairment of trade receivables (IAS 39 2017) $’000$’000 $’000 $’000 A provision for impairment of trade and other receivables is established where there is objective evidence that the SundrySundry debtorsCurrent debtors tax 14,09419,794 19,794 20,024 20,02417,643 Group will not be able to collect all amounts due according to the original terms of receivables. Trade receivables ProvisionProvisionPrior for impairment foryear impairment under provision (3,764) 4,301 (3,764) (3,196) (3,196) 717 that are less than 2 months past due are not considered impaired. Payments on invoices are due 30 days after issue. Deferred tax 16,030(1,736) 16,030 16,828 16,828 1,319 The creation and release of provision for impaired receivables have been included in ‘administrative expenses’ in PrepaymentsPrepaymentsShare of tax in associate and joint venture (Note 9) 1,2585,270 5,270 5,028 5,028 344 the statement of proft or loss and other comprehensive income. Signifcant fnancial difculties of the debtor, 17,91721,300 21,300 21,856 21,85620,023 probability that the debtor will enter bankruptcy or fnancial reorganisation, and default or delinquency in payments MovementMovement on the on Group’sthe Group’s provision provision for impairment for impairment of sundry of sundry debtors debtors is as is follows: as follows: are considered indicators that the trade receivables are impaired. The carrying amount of the asset is reduced The tax on the Group’s proft before tax difers from the theoretical amount that would arise using the basic rate of through the use of an allowance account, and the amount of the loss is recognised in the statement of proft or loss At beginningAt beginning of the of yearthe year 3,196 3,196 2,690 2,690 tax as follows: and other comprehensive income within administrative expenses. When a receivable is uncollectible, it is written IncreaseIncrease in provision in provision for impairment for impairment 568 568 506 506 of against the allowance account for trade receivables. Subsequent recoveries of amounts previously written of At endAt end of the of yearthe year 20183,764 3,764 3,196 3,1962017 are credited against administrative expenses in the statement of proft or loss and other comprehensive income. $’000 $’000 ThereThere is no is concentrationno concentration with with respect respect to credit to credit risk. risk. As at As 31 at December 31 December 2018, 2018, sundry sundry debtors debtors of $16,029,085 of $16,029,085 (2017 (2017 - $ - $ 16,827,957)16,827,957) were were fully fully performing. performing. The expected loss rates are based on the payment profles of sales over a period of 36 months before 31 December Proft before tax 38,155 72,469 2018 and the corresponding historical credit losses experienced within this period. The historical loss rates are 14 14 DeferredDeferredTax programming calculated programming at 30% 11,447 21,297 adjusted to refect current and forward-looking macroeconomic factors afecting the ability of the customers to 20182018 20172017 Efect of diferent tax rates in other countries 21 (994) settle the receivables. $’000$’000 $’000$’000 Efect of change in tax rate (2,738) - OpeningOpening balance balance 5,225 5,225 3,202 3,202 Expenses not deductible for tax purposes 6,644 2,478 On that basis, the loss allowance as at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) was determined NewNew contracts contracts 2,042 2,042 6,278 6,278 Income not subject to tax (3,743) (3,144) for trade receivables. 7,267 7,267 9,480 9,480 Tax losses not utilised (517) (544) UsageUsage (3,877) (3,877) (4,255) (4,255) Efect of income tax holiday 1,144 (115) The Group does not hold any collateral as security for current trade receivables. 3,390 3,390 5,225 5,225 Tax allowances - (181) CurrentCurrent portion portion (1,792) (1,792) (3,860) (3,860) Other permanent diferences 1,031 245 13 Sundry debtors and prepayments Non-currentNon-current portion portion 1,598 1,598 1,365 1,365 2018 2017 Business levy 327 264 $’000 $’000 Prior year under provision 4,301 717 AccountingAccounting policy policy Sundry debtors 19,794 20,024 17,917 20,023 DeferredDeferred programming programming is measured is measured at cost at cost less lessamortization amortization based based on usage. on usage. It represents It represents programming programming contracted contracted but but Provision for impairment (3,764) (3,196) not notyet broadcasted.yet broadcasted. The Thecost cost of programmes of programmes is expensed is expensed as they as they are broadcasted.are broadcasted. 16,030 16,828 (b) Accounting policies Prepayments 5,270 5,028 The tax expense for the period comprises current and deferred tax. Tax is recognised in the consolidated statement 21,300 21,856 of proft or loss, except to the extent that it relates to items recognised in other comprehensive income or directly Page Page 78 | ONE78 | CARIBBEANONE CARIBBEANin equity. MEDIA MEDIA LIMITED In thisLIMITED | caseANNUAL | ANNUALthe tax REPORT is also REPORT recognised 2018 2018 in other comprehensive income or directly in equity, respectively. Movement on the Group’s provision for impairment of sundry debtors is as follows: The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the At beginning of the year 3,196 2,690 The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet balance sheet date in the countries where the Group’s subsidiaries and associates operate and generate taxable Increase in provision for impairment 568 506 date in the countries where the Group’s subsidiaries and associates operate and generate taxable income. Management income. Management periodically evaluates positions taken in tax returns with respect to situations in which At end of the year 3,764 3,196 periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax There is no concentration with respect to credit risk. As at 31 December 2018, sundry debtors of $16,029,085 (2017 - $ authorities.amounts expected to be paid to the tax authorities. 16,827,957) were fully performing.

14 Deferred programming 2018 2017 $’000 $’000 Opening balance 5,225 3,202 New contracts 2,042 6,278 7,267 9,480 Usage (3,877) (4,255) 3,390 5,225 Current portion (1,792) (3,860) Non-current portion 1,598 1,365

Accounting policy Deferred programming is measured at cost less amortization based on usage. It represents programming contracted but not yet broadcasted. The cost of programmes is expensed as they are broadcasted.

Page 78 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 79 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

15 Taxation (continued) (b) Accounting policies (continued) Deferred income tax is recognised, using the liability method, on temporary diferences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated fnancial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or an asset or liability in a transaction other than a business combination that at the time of the transaction afects neither accounting nor taxable income. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable proft will be available against which the temporary diferences can be utilised.

Deferred income tax assets and liabilities are ofset when there is a legally enforceable right to ofset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or diferent taxable entities where there is an intention to settle the balances on a net basis.

The principal temporary diferences arise from depreciation on property, plant and equipment and retirement beneft obligation, intangibles and investment properties.

Deferred taxes are calculated in full on all temporary diferences under the liability method using a principal tax rate of 30% (2017: 30%) for Trinidad and Tobago entities and 5% (2017-25%) for overseas entities.

The impact of the change in tax rate has been recognized in the prior year in the tax expense in the consolidated statement of proft or loss, except to the extent that it relates to items previously recognized in comprehensive income, in particular remeasurement of the retirement beneft obligation.

(c) Deferred income tax (assets)/liabilities Deferred taxes are calculated in full on all temporary diferences under the liability method using a principal tax rate of 30% (2017 – 30%). 2018 2017 $’000 $’000

Deferred tax assets (21,665) (12,052) Deferred tax liabilities 37,130 36,524 Deferred tax (assets) / liabilities - net 15,465 24,472

ONE CARIBBEAN MEDIA LIMITED The movement on the deferred income tax account is as follows: Year ended 31 December 2018 Notes to the consolidated fnancial statements At beginning of year 24,472 22,458 IFRS initial application adjustments (5,598) - (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars) ONE CARIBBEAN MEDIA LIMITED Acquisition (Note 30) - (3,656) Year ended 31 December 2018 Charge to consolidated income statement (1,369) 1,319 15 Taxation (continued) Charge to other comprehensive income (2,040) 4,351 Notes(b) to Accountingthe consolidated policies (continued) fnancial statements At end of the year 15,465 24,472 (These fnancial statements are expressed in Trinidad and Tobago dollars) Deferred income tax is recognised, using the liability method, on temporary diferences arising between the tax bases The gross movement on the deferred income tax account is as follows: of assets and liabilities and their carrying amounts in the consolidated fnancial statements. However, the deferred 12. Trade incomereceivables tax is (continued) not accounted for if it arises from initial recognition of goodwill or an asset or liability in a transaction Accountingother than policy a business (continued) combination that at the time of the transaction afects neither accounting nor taxable income. (b) DeferredImpairment income (continued) tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balancePrevious sheet accounting date and policy are expected for impairment to apply of when trade thereceivables related deferred(IAS 39 2017) income tax asset is realised or the deferred incomeA provision tax liability for impairment is settled. of trade and other receivables is established where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Trade receivables Deferredthat are lessincome than tax 2 months assets arepast recognised due are not only considered to the extent impaired. that Payments it is probable on invoices that future are due taxable 30 days pro afterft will issue. be availableThe creation against and which release the of temporary provision di forferences impaired can receivables be utilised. have been included in ‘administrative expenses’ in the statement of proft or loss and other comprehensive income. Signifcant fnancial difculties of the debtor, Deferredprobability income that thetax assetsdebtor and will liabilities enter bankruptcy are ofset or when fnancial there reorganisation, is a legally enforceable and default right or todelinquency ofset current in payments tax assets againstare considered current tax indicators liabilities thatand when the trade the deferred receivables income are taxes impaired. assets The and carrying liabilities amount relate to of income the asset taxes is levied reduced by Page 80 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 thethrough same taxationthe use of authority an allowance on either account, the same and thetaxable amount entity of orthe di lossferent is recognised taxable entities in the where statement there of is pro an fintentiont or loss toand settle other the comprehensive balances on a net income basis. within administrative expenses. When a receivable is uncollectible, it is written of against the allowance account for trade receivables. Subsequent recoveries of amounts previously written of Theare principal credited temporaryagainst administrative diferences arise expenses from depreciationin the statement on property, of proft orplant loss and and equipment other comprehensive and retirement income. beneft obligation, intangibles and investment properties. The expected loss rates are based on the payment profles of sales over a period of 36 months before 31 December Deferred2018 and taxes the arecorresponding calculated in historical full on all credit temporary losses di experiencedferences under within the thisliability period. method The using historical a principal loss rates tax rateare ofadjusted 30% (2017: to re30%)fect for current Trinidad and and forward-looking Tobago entities macroeconomic and 5% (2017-25%) factors for aoverseasfecting entities.the ability of the customers to settle the receivables. The impact of the change in tax rate has been recognized in the prior year in the tax expense in the consolidated statementOn that basis, of pro thef tloss or allowance loss, except as at to 31 the December extent that 2018 it and relates 1 January to items 2018 previously (on adoption recognized of IFRS 9) in was comprehensive determined income,for trade in receivables. particular remeasurement of the retirement beneft obligation.

(c)The GroupDeferred does incomenot hold tax any (assets)/liabilities collateral as security for current trade receivables. Deferred taxes are calculated in full on all temporary diferences under the liability method using a principal tax rate 13 Sundryof debtors 30% (2017 and – 30%prepayments). 20182018 2017 $’000$’000 $’000$’000 Sundry debtors 19,794 20,024 ProvisionDeferred for impairment tax assets (21,665) (3,764) (12,052) (3,196) Deferred tax liabilities 37,130 16,030 16,82836,524 PrepaymentsDeferred tax (assets) / liabilities - net 15,465 5,270 24,472 5,028 21,300 21,856 MovementThe movement on the Group’s on the provision deferred for income impairment tax account of sundry is as debtors follows: is as follows: At beginningAt beginning of the yearof year 24,472 3,196 22,458 2,690 IncreaseIFRS in initialprovision application for impairment adjustments (5,598) 568 506 - At endAcquisition of the year (Note 30) 3,764 - (3,656) 3,196 Charge to consolidated income statement (1,369) 1,319 There isCharge no concentration to other comprehensive with respect income to credit risk. As at 31 December 2018, sundry debtors (2,040) of $16,029,085 (2017 4,351 - $ 16,827,957)At end were of the fully year performing. 15,465 24,472 The gross movement on the deferred income tax account is as follows: 14 Deferred programming 2018 2017 $’000 $’000 Opening balance 5,225 3,202 New contracts 2,042 6,278 7,267 9,480 Usage (3,877) (4,255) 3,390 5,225 Current portion (1,792) (3,860) Non-current portion 1,598 1,365

Accounting policy Page 80 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Page 80 |DeferredONE CARIBBEAN programming MEDIA LIMITED | is ANNUAL measured REPORT at cost less 2018 amortization based on usage. It represents programming contracted but not yet broadcasted. The cost of programmes is expensed as they are broadcasted.

Page 78 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

15 Taxation (continued) (b) Accounting policies (continued) Deferred income tax is recognised, using the liability method, on temporary diferences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated fnancial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or an asset or liability in a transaction other than a business combination that at the time of the transaction afects neither accounting nor taxable income. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable proft will be available against which the temporary diferences can be utilised.

Deferred income tax assets and liabilities are ofset when there is a legally enforceable right to ofset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or diferent taxable entities where there is an intention to settle the balances on a net basis.

The principal temporary diferences arise from depreciation on property, plant and equipment and retirement beneft obligation, intangibles and investment properties.

Deferred taxes are calculated in full on all temporary diferences under the liability method using a principal tax rate of 30% (2017: 30%) for Trinidad and Tobago entities and 5% (2017-25%) for overseas entities.

The impact of the change in tax rate has been recognized in the prior year in the tax expense in the consolidated statement of proft or loss, except to the extent that it relates to items previously recognized in comprehensive income, in particular remeasurement of the retirement beneft obligation.

(c) Deferred income tax (assets)/liabilities Deferred taxes are calculated in full on all temporary diferences under the liability method using a principal tax rate of 30% (2017 – 30%). 2018 2017 $’000 $’000

Deferred tax assets (21,665) (12,052) ONEONE CARIBBEAN CARIBBEAN MEDIA MEDIA LIMITED LIMITED Deferred tax liabilities 37,130 36,524 YearYear ended ended 31 31 December December 2018 2018 Deferred tax (assets) / liabilities - net 15,465 24,472 NotesNotes to to the the consolidated consolidated f nancialfnancial statements statements (These(These fnancial ONEfnancial CARIBBEAN statements statementsThe MEDIA aremovement are expressed LIMITEDexpressed on in the Trinidadin deferredTrinidad and incomeand Tobago Tobago tax dollars) account dollars) is as follows: ONEYear endedCARIBBEAN 31 December MEDIA LIMITED 2018 ONE CARIBBEAN MEDIA LIMITED ONE CARIBBEANONEYearNotesONE CARIBBEAN endedCARIBBEAN MEDIAto 31 the AtDecember MEDIA LIMITEDMEDIAbeginning consolidated LIMITED LIMITED 2018 of year fnancial statements 24,472 22,458 12.Year12. endedTradeYearTrade 31 receivablesended receivablesDecember 31 IFRSDecember (continued) 2018 initial(continued) application2018 adjustments (5,598) - Year endedYear(These ended31 fDecembernancial 31 December statements statements 2018 2018 are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars) Notes AccountingNotesAccounting to the to policy consolidated policy theAcquisition (continued) consolidated(continued) (Note 30) f nancial fnancial statements statements - (3,656) Notes (b)Notes(These(b) to Impairment the fImpairmentnancial to consolidated theCharge statements (continued) consolidated (continued) to consolidated are expressed fnancial income f innancial Trinidad statement statements and statements Tobago dollars) (1,369) 1,319 (These f(Thesenancial f nancialstatements statements are expressed are expressed in Trinidad in Trinidad and Tobago and Tobago dollars) dollars) (These (Thesef15nancial Previous fTaxationPreviousnancial statements Chargeaccounting statements accounting(continued) are to expressed other policy are policy comprehensiveexpressed for in for impairment Trinidad impairment in Trinidad and income of Tobago oftrade and trade receivablesTobago dollars) receivables dollars) (IAS (IAS 39 39 2017) 2017) (2,040) 4,351 A provisionA provision for for impairment impairment of oftrade trade and and other other receivables receivables is establishedis established where where there there is objectiveis objective evidence evidence that that the the 15 Taxation(c) DeferredAt (continued)end of incomethe year tax (assets)/liabilities (continued) 15,465 24,472 15 TaxationGroupGroup (continued) will will not not be be able able to tocollect collect all allamounts amounts due due according according to tothe the original original terms terms of ofreceivables. receivables. Trade Trade receivables receivables 15 15Taxation 15 Taxation(c)Taxation (continued) DeferredThe (continued) (continued) gross income movement tax (assets)/liabilitieson the deferred income (continued)Accelerated tax account Retirement is as follows: thatthat are are less less than than 2 months 2 months past past due due are are not not considered considered impaired. impaired. Payments Payments on on invoices invoices are are due due 30 30 days days after after issue. issue. (c) (c)Deferred(c) DeferredDeferred income income income tax (assets)/liabilities tax tax (assets)/liabilities (assets)/liabilities (continued) (continued) (continued)tax beneft Investment The The creation creation and and release release of ofprovision provision for for impaired impairedAccelerated receivables receivables have Retirement have been been included included in ‘administrativein ‘administrative expenses’ expenses’ in in AccelerateddepreciationAccelerated Retirement Retirement obligation Intangibles properties Other Total the the statement statement of ofpro proft fort orloss loss and and other other comprehensiveAccelerated comprehensiveAcceleratedtax Retirement income. income. Retirement bene Signi Signifftcant fcant fnancial fnancial di fdicultiesfInvestmentculties of ofthe the debtor, debtor, tax $’000tax bene ft bene $’000f t $’000 Investment Investment $’000 $’000 $’000 probability probability that that the the debtor debtor will will enter enter bankruptcy bankruptcytax ordepreciation orf nancial fnancialtax reorganisation,bene reorganisation, fobligationtbene ft and and defaultIntangibles default Investmentor ordelinquency delinquency Investmentproperties in payments in paymentsOther Total Deferred tax (assets) / liabilities depreciation depreciation obligation obligation Intangibles Intangibles properties properties Other Other Total Total are are considered considered indicators indicators that that the the trade trade receivablesdepreciation receivables depreciation $’000 are are impaired.obligation impaired. obligation $’000The The Intangibles carrying carrying Intangibles amount$’000 amount properties of of theproperties $’000 the asset assetOther is reducedis Other$’000 reduced Total Total $’000 At 1 January 2018 $’000 17,914 $’000 $’000 $’000 (570) $’000 $’000 7,048 $’000 11,562 $’000 $’000 (11,482) $’000 $’000 24,472$’000 through Deferredthrough the thetax use (assets)use of ofan an allowance / liabilitiesallowance account, account, and and the $’000 the amount amount $’000 of $’000 ofthe the loss loss$’000 is recognisedis recognised $’000 $’000 in thein the $’000statement statement $’000 of $’000 ofpro prof t for$’000t orloss $’000 loss $’000 DeferredDeferredIFRS tax initial (assets) tax tax application (assets) /(assets) liabilities / liabilities/adjustments liabilities - - - - (5,598) (5,598) ONEONE CARIBBEAN CARIBBEANDeferredand DeferredMEDIAAt tax MEDIAother1 January (assets) LIMITED comprehensivetax LIMITED (assets)2018 / liabilities / liabilities income within administrative 17,914 expenses. When (570) a receivable 7,048 is uncollectible, 11,562 it is (11,482)written 24,472 At 1 JanuaryChargeAtand 1 Januaryother 2018 / (credit) comprehensive 2018 to proft or income loss within administrative 17,914 17,914 2,191 expenses. (570) (1,970) (570) When 7,048 a receivable 7,048 (481) 11,562 is uncollectible, 11,562 (1,104) (11,482) it (11,482)is written 24,472 (5) 24,472(1,369) YearYear ended endedAt 31 1 31 JanuaryDecember AtIFRSDecember 1 January initial 2018 2018 application2018 2018 adjustments 17,914 17,914 - (570) (570) - 7,048 7,048 -11,562 11,562 (11,482) - (11,482) (5,598) 24,472 24,472 (5,598) IFRS initialofo againstf applicationagainst the the allowance adjustmentsallowance account account for for trade trade receivables. receivables. - Subsequent Subsequent - recoveries recoveries -of ofamounts amounts previously - previously (5,598) written written o(5,598)f of IFRS initialIFRSChargeIFRS application initial initial /to (credit) application otherapplication adjustments comprehensiveto pro adjustments fadjustmentst or loss income - 2,191 - - - (1,970)(2,040) - - - (481) - - - (1,104) - (5,598)- (5,598) (5,598) (5,598) (5) - (5,598) (1,369)(2,040)(5,598) Chargeare /are credited(credit) credited to against pro againstft oradministrative lossadministrative expenses expenses in 2,191thein the statement statement (1,970) of ofpro proft fort orloss loss (481) and and other other comprehensive(1,104) comprehensive income. (5) income. (1,369) NotesNotes Chargeto to the theCharge ChargeAt/ (credit) consolidated31 consolidated December /to/ (credit) (credit)to other prof comprehensiveto t2018to or pro pro loss ff tft or or nancialf loss lossnancial income statements statements 2,191 20,105 2,191 2,191 - (1,970) (1,970) (2,040)(4,580)(1,970) (481) 6,567(481) (481) - (1,104) (1,104)10,458 (1,104) - (5) (17,085) (1,369)(5) (5) - (1,369) (2,040)15,465(1,369) (These(These fnancial fChargenancial statements to statements other comprehensive are are expressed expressed incomein Trinidadin Trinidad and and Tobago Tobago dollars) - dollars) (2,040) - - - (2,040) ChargeCharge AtCredit Chargeto 31other December to to to comprehensiveother other other comprehensive comprehensive comprehensive2018 income income income income - 20,105 - - (2,040) (2,040) (4,580)(2,040) - 6,567 - - - 10,458 - - - (17,085) (2,040) - - (2,040) 15,465(2,040) At 31 TheDecemberThe expected expected 2018 loss loss rates rates are are based based on on the the payment payment 20,105 pro pro flesf les of (4,580) ofsales sales over over a period a period6,567 of of36 36 months 10,458months before before (17,085) 31 31 December December 15,465 At 31 DecemberAt AtDeferred 31 31 December December 2018tax (assets) 2018 2018 / liabilities 20,105 20,105 20,105 (4,580) (4,580) (4,580) 6,567 6,567 6,567 10,458 10,458 10,458 (17,085) (17,085) (17,085) 15,465 15,465 15,465 2018At2018 1 and January and the the corresponding 2017 corresponding historical historical credit credit losses losses experienced17,405 experienced within (4,086) within this this period. period. 7,529 The The historical historical 12,054 loss loss rates (10,444)rates are are 22,458 12.12. Trade Trade Page receivables 80 receivables| Deferred ONE CARIBBEAN (continued)tax (continued) MEDIA (assets) LIMITED / liabilities | ANNUAL REPORT 2018 DeferredadjustedAcquisitionadjusted tax (assets) to tore fre /ect fliabilitiesect current current and and forward-looking forward-looking macroeconomic macroeconomic (3,656) factors factors -a f aectingfecting the the ability- ability of ofthe the customers- customers to - to (3,656) AccountingAccountingDeferredDeferredAtDeferred tax 1policy January policy(assets) tax tax(continued)tax (continued) (assets) 2017 (assets)/ (assets) liabilities / / liabilities liabilities/ liabilities 17,405 (4,086) 7,529 12,054 (10,444) 22,458 At 1 JanuarysettleChargesettle the 2017 the receivables./ (credit) receivables. to proft or loss 17,405 4,165 (4,086) (835) 7,529 (481) 12,054 (492) (10,444) (1,038) 22,458 1,319 (b)(b)At 1 JanuaryImpairmentAtImpairmentAcquisitionAt 1 1 January January 2017 (continued) 2017(continued)2017 17,405 17,405 17,405(3,656) (4,086) (4,086) (4,086) - 7,529 7,529 7,529 -12,054 12,054 12,054 (10,444) - (10,444) (10,444) 22,458 - 22,458 (3,656)22,458 AcquisitionCharge to other comprehensive income (3,656) - - 4,351 - - - - - (3,656) - 4,351 AcquisitionPreviousAcquisitionChargePreviousAcquisition accounting / (credit)accounting to policy pro policyft foror for lossimpairment impairment of oftrade (3,656) trade receivables (3,656) receivables (3,656)4,165 (IAS (IAS- 39 (835) 39 2017) - 2017)- - (481) - - - (492) - - - (1,038) (3,656) - - (3,656) (3,656)1,319 ChargeOn At/On that(credit) 31 that basis,December basis, to thepro the floss t2017 lossor allowance loss allowance as asat 31at 31 December December 4,165 2018 201817,914 and and 1 (835)January 1 January (570) 2018 2018 (on (481) (on adoption adoption 7,048 of (492) IFRSof IFRS 11,562 9) was9) was(1,038) determined determined (11,482) 1,319 24,472 ChargeA provisionCharge ChargeA/ (credit)provision /to/ (credit) (credit)tofor other forpro impairment impairmentf comprehensiveto tto or pro pro lossfftt or ofor ofloss tradeloss trade income and and other other receivables 4,165 receivables 4,165 4,165 is - established is (835)established 4,351 (835) (835) where where (481) there there (481) (481)is objectiveis - objective (492) evidence (492) (492) evidence (1,038)- that (1,038) that(1,038) the 1,319the - 1,319 4,3511,319 Chargefor tofor trade other trade receivables. comprehensive receivables. income - 4,351 - - - 4,351 ChargeGroupCharge AtGroupChargeto 31other will December willto to notcomprehensive other othernot be be ablecomprehensive comprehensive2017 able to tocollect income collect all income income allamounts amounts due due according -according 17,914 - - to 4,351 tothe the original 4,351 4,351 original(570) terms terms - of 7,048 ofreceivables. receivables. - - - 11,562 Trade Trade - - receivables receivables - (11,482) 4,351 - - 24,472 4,351 4,351 At 31 DecemberAt 31 December 2017 2017 17,914 17,914 (570) (570) 7,048 7,048 11,562 11,562 (11,482) (11,482) 24,472 24,472 The16AtThe Group 31 Groupthat DecemberAtInventoriesthat doesare31 doesare Decemberless not less 2017 notthan hold than hold 2 any 2017months 2 any months collateral collateral past past dueas dueassecurity are security are not not for considered for 17,914consideredcurrent current 17,914 trade impaired. trade impaired. receivables. (570) receivables. Payments Payments (570) 7,048on on invoices invoices 7,048 are11,562 are due due 11,562 30 30 days (11,482) days after after (11,482) issue. issue. 24,472 24,472 TheThe creation creation and and release release of ofprovision provision for for impaired impaired receivables receivables have have been been included included in ‘administrativein ‘administrative expenses’ expenses’ in in 16 Inventories 2018 2017 131613 SundryInventories16Sundry the debtorsInventoriesthe debtorsstatement statement and and prepaymentsof prepayments ofpro proft fort orloss loss and and other other comprehensive comprehensive income. income. Signi Signifcantfcant fnancial fnancial di fdicultiesfculties of ofthe the debtor, debtor, 16 16Inventories Inventories $’0002018 $’0002017 probabilityprobability that that the the debtor debtor will will enter enter bankruptcy bankruptcy or orfnancial fnancial reorganisation, reorganisation, and and default 2018default or ordelinquency2018 delinquency2018 2017 in paymentsin 2017payments2017 Goods held for sale 2018 $’000 20189,2812018 2017 16,203$’00020172017 areare considered considered indicators indicators that that the the trade trade receivables receivables are are impaired. impaired. The The carrying carrying $’000 amount amount $’000 of$’000 of the the asset asset$’000 is reducedis$’000 reduced$’000 Goods Newsprint held and for saleother raw materials $’000 14,154$’000 $’0009,281 $’000 16,20311,539$’000$’000 SundryGoodsSundrythrough debtors heldthrough debtors for the sale the use use of ofan an allowance allowance account, account, and and the the amount amount of ofthe the loss loss is recognisedis recognised 9,281 in thein the 19,794 statement 19,794 statement of 16,203 ofpro pro f20,024t f20,024ort orloss loss Goods GoodsheldNewsprintGoodsSpare for partsheld held sale and for andfor sale othersale consumables raw materials 9,281 14,154 9,281 9,2816,000 16,203 16,203 11,53916,203 6,209 ProvisionNewsprintProvisionand andfor other andfor impairment other impairment other comprehensive comprehensive raw materials income income within within administrative administrative expenses. expenses. When When a receivable a receivable 14,154 is (3,764) uncollectible,is (3,764)uncollectible, 11,539 it isit (3,196) written is (3,196) written NewsprintNewsprintSpareNewsprintGoods and parts in other transit and and and raw other other consumables materials raw raw materials materials 14,154 14,154 14,154 6,000 688 11,539 11,539 11,539 6,2091,501 Spare o partsfSpare o againstf againstand parts consumables the theand allowance allowanceconsumables account account for for trade trade receivables. receivables. Subsequent Subsequent recoveries recoveries of 6,000 ofamounts amounts 30,12216,030 6,000 16,030 previously previously 6,209 written 16,828 written 35,45216,828 6,209 o f o f Spare partsSpareGoods(a) and parts inAccounting consumables transit and consumables policy 6,000 6,000 688 6,209 6,2091,501 PrepaymentsGoodsPrepaymentsare inGoodsare creditedtransit credited in transit against against administrative administrative expenses expenses in thein the statement statement of ofpro prof t for t orloss loss and and other 688 other comprehensive 5,270 comprehensive688 5,270 1,501 income. income.5,028 1,5015,028 Goods Goodsin transit inInventories transit are stated at lower of cost and net realisable value. Net realisable 688 value 30,122 688 is the estimated 1,501 35,452 1,501 selling price in the (a) Accounting policy 30,122 30,12221,300 21,300 35,452 21,856 35,45221,856 (a) Accounting policy 30,122 30,122 35,452 35,452 (a) The(a)Accounting(a)The expected expectedAccountingInventoriesAccountingordinary policyloss loss courserates arepolicyrates policy are stated of are based business based at loweron on theless theof payment applicablecost payment and pro net provariablef lesrealisablefles of ofsales selling sales value.over overexpense. a Net period a period realisable Cost of of36 is 36 months determinedvalue months is before the before byestimated 31 the 31 December fDecemberrst-in, selling f rst-out price in(FIFO) the MovementMovementInventories on on the the Group’s are Group’s stated provision provision at lower for for ofimpairment impairmentcost and net of ofsundry realisable sundry debtors debtors value. is Net asis asfollows: realisable follows: value is the estimated selling price in the 2018Inventories2018 and andInventoriesordinaryInventoriesmethod the theare corresponding correspondingstated exceptcourse areare at stated stated forof lower businessspare historical atat historicalof lowerlowerparts cost less ofcreditandof applicable costcreditcost consumablesnet losses andand realisablelosses netnet variableexperienced realisableexperiencedrealisable whichvalue. selling are Net value.value.within determined withinexpense.realisable NetNet this this realisablerealisable period.Cost value period.using is is determined valueThethe valuethe The weighted historicalestimated is ishistorical thethe estimatedbyestimated average loss theselling loss ratesfrst-in, rates sellingcost.priceselling are f are rst-outin price pricethe in(FIFO)in thethe ordinary course of business less applicable variable selling expense. Cost is determined by the frst-in, frst-out (FIFO) At Atbeginning beginningadjustedordinaryadjusted ofordinary methodordinaryoftheto course thetore year fre ectyearf exceptcourseectofcourse current business current for ofof and businesssparebusiness andless forward-looking partsforward-lookingapplicable lessless and applicableapplicable consumables variable macroeconomic macroeconomic variablevariable selling which sellingexpense.selling are factors determined factorsexpense.expense. Cost af aectingisf CostdeterminedectingCost using theisis determinedthe determinedthe ability 3,196 abilityweighted by 3,196 ofthe ofthe byfby therst-in, average customers thethe customers ff rst-in,2,690rst-in,rst-out cost.2,690 to f f rst-out (FIFO)torst-out (FIFO)(FIFO) IncreaseIncreasesettle methodinsettle provisionin the provision themethodmethod(b) receivables.except receivables. for The for exceptforimpairmentexcept impairment costspare for forof parts spare rawspare materialsand parts parts consumables and and and consumables consumables consumables which arewhich which used determined are are and determined determined included using inthe using using cost weighted ofthe the services weighted weighted568 average568 provided average average cost. amounted 506cost. cost. 506 to At Atend end of ofthe the year (b) year The$41,483,768 cost of raw (2017 materials - $44,991,023). and consumables used and included in cost of services 3,764 3,764 provided amounted3,196 3,196 to (b) The cost of raw materials and consumables used and included in cost of services provided amounted to On(b)On that that basis,(b)The (b) basis, cost theThe $41,483,768theThe lossof losscost rawcost allowance allowance materialsof of raw raw (2017 materials materialsas and asat- $44,991,023). 31at consumables 31 December and and December consumables consumables 2018 used 2018 and and and used used 1 Januaryincluded 1 Januaryand and included included 2018 in 2018 cost (on (onin of inadoption cost servicescost adoption of of services services of provided IFRSof IFRS 9)provided provided was9) amounted was determined determined amounted amounted to to to ThereThere isfor noisfor trade no concentration trade concentration $41,483,768receivables. receivables.$41,483,768$41,483,768 with (2017 with respect respect- (2017$44,991,023).(2017 to - - to$44,991,023). credit$44,991,023). credit risk. risk. As Asat at31 31 December December 2018, 2018, sundry sundry debtors debtors of of$16,029,085 $16,029,085 (2017 (2017 - $ - $ 16,827,957)1716,827,957) Cash were wereand fully term fully performing. performing.deposits (i) Cash and cash equivalents (excluding bank overdrafts) The17The Group GroupCash does does and not not term hold hold depositsany any collateral collateral as assecurity security for for current current trade trade receivables. receivables. 17 Cash and term deposits 141714 Deferred17Cash17Deferred andCashCash programming termprogramming and and deposits term term(i) deposits deposits Cash and cash equivalents (excluding bank overdrafts) 2018 2017 (i) Cash(i) andCash cash and equivalents cash equivalents (excluding (excluding bank overdrafts) bank overdrafts) 20182018 20172017 13 13 SundrySundry debtors debtors (i) and and prepaymentsCash(i) prepayments andCash cash and equivalents cash equivalents (excluding (excluding bank overdrafts) bank overdrafts) $’000 $’000 $’0002018$’000 $’000$’0002017 2018 2018201820182018 2017 2017201720172017 OpeningOpening balance balance $’0005,225 5,225 3,202 3,202$’000 Cash at bank and in hand $’000 59,766$’000$’000$’000$’000 $’000 $’000 55,513$’000$’000$’000 NewNew contracts contracts 2,042 2,042 6,278 6,278 SundrySundry debtors debtors Restricted cash (note 32) 19,7947,650 19,794 20,024 20,024 7,650 Cash at bank and in hand 59,766 7,267 7,267 9,480 55,513 9,480 ProvisionProvision for for impairment impairmentCash atCash CashShort-termbank at atand bank bank in bank handand and depositsin in hand hand 59,766 59,766 59,766(3,764) (3,764)624 55,513 (3,196) 55,513(3,196)55,51314,867 UsageUsage Restricted cash (note 32) (3,877)7,650 (3,877) (4,255) (4,255) 7,650 RestrictedRestrictedRestricted cash (Note(note cash cash 32) (note (note 32) 32) 7,650 16,030 68,0407,6507,650 16,030 7,650 16,828 16,828 78,030 7,650 7,650 Short-term bank deposits 3,390 624 3,390 5,225 14,867 5,225 PrepaymentsPrepayments Short-term(ii) Short-termShort-termTerm bank deposits deposits bank bank deposits deposits 624 5,270 624 6245,270 14,867 5,028 14,867 14,867 5,028 CurrentCurrent portion portion 68,040 (1,792) (1,792) (3,860) 78,030 (3,860) 68,040 68,04021,300 68,040 21,300 78,030 21,856 21,85678,030 78,030 Non-currentNon-current portion portion (ii) TermTerm depositsdeposits 25,418 1,598 1,598 1,36510,651 1,365 MovementMovement on on the (ii)the Group’s Group’s(ii)Term(ii) provision provision depositsTermTerm fordeposits deposits for impairment impairment of ofsundry sundry debtors debtors is asis asfollows: follows: Term deposits 25,418 10,651 AccountingAccounting policy policy Term deposits 25,418 10,651 At Atbeginning beginning of ofthe the year yearTerm depositsTermTerm deposits deposits 25,418 25,418 25,418 3,196 3,196 10,651 2,69010,651 10,6512,690 DeferredDeferred programming programming is measuredis measured at atcost cost less less amortization amortization based based on on usage. usage. It represents It represents programming programming contracted contracted but but IncreaseIncrease in provisionin provision for for impairment impairment 568 568 506 506 notnot yet yet broadcasted. broadcasted. The The cost cost of ofprogrammes programmes is expensedis expensed as asthey they are are broadcasted. broadcasted. At Atend end of ofthe the year year 3,764 3,764 3,196 3,196

ThereThere is nois no concentration concentration with with respect respect to tocredit credit risk. risk. As Asat at31 31 December December 2018, 2018, sundry sundry debtors debtors of of$16,029,085 $16,029,085 (2017 (2017 - $ - $ Page Page 78 |16,827,957)78ONE |16,827,957)ONE CARIBBEAN CARIBBEAN were MEDIA were MEDIA fullyLIMITED fullyLIMITED performing. | performing. ANNUAL| ANNUAL REPORT REPORT 2018 2018

14 14 DeferredDeferred programming programming ONE CARIBBEAN MEDIA LIMITED20182018 | ANNUAL REPORT20172017 2018 | PagePage 8181 $’000$’000 $’000$’000 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 81 OpeningOpening balance balance 5,225 5,225 3,202 3,202 ONE CARIBBEANONEONE CARIBBEAN CARIBBEAN MEDIA LIMITED MEDIA MEDIA | LIMITED LIMITED ANNUAL || ANNUALANNUAL REPORT REPORTREPORT 2018 | 2018 2018Page 81 || Page Page 81 81 NewNew contracts contracts 2,042 2,042 6,278 6,278 7,267 7,267 9,480 9,480 UsageUsage (3,877) (3,877) (4,255) (4,255) 3,390 3,390 5,225 5,225 CurrentCurrent portion portion (1,792) (1,792) (3,860) (3,860) Non-currentNon-current portion portion 1,598 1,598 1,365 1,365

AccountingAccounting policy policy DeferredDeferred programming programming is measuredis measured at atcost cost less less amortization amortization based based on on usage. usage. It represents It represents programming programming contracted contracted but but notnot yet yet broadcasted. broadcasted. The The cost cost of ofprogrammes programmes is expensedis expensed as asthey they are are broadcasted. broadcasted.

Page Page 78 |78ONE |ONE CARIBBEAN CARIBBEAN MEDIA MEDIA LIMITED LIMITED | ANNUAL| ANNUAL REPORT REPORT 2018 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

12. Trade receivables (continued) Accounting policy (continued) (b) Impairment (continued) Previous accounting policy for impairment of trade receivables (IAS 39 2017) A provision for impairment of trade and other receivables is established where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Trade receivables that are less than 2 months past due are not considered impaired. Payments on invoices are due 30 days after issue. ONE CARIBBEANThe creation MEDIA andLIMITED release of provision for impaired receivables have been included in ‘administrative expenses’ in Year endedthe 31 statementDecember 2018of proft or loss and other comprehensive income. Signifcant fnancial difculties of the debtor, Notes toprobability the consolidated that the debtor will fenternancial bankruptcy statements or fnancial reorganisation, and default or delinquency in payments ONE(These CARIBBEAN fnancialONEare CARIBBEAN considered statements statementsMEDIA LIMITED MEDIA indicators are are expressed expressedLIMITED that in the in Trinidad Trinidad trade receivablesand and Tobago Tobago are dollars) dollars) impaired. The carrying amount of the asset is reduced Year endedYearthrough 31 ended December the 31 useDecember 2018 of an allowance 2018 account, and the amount of the loss is recognised in the statement of proft or loss and other comprehensive income within administrative expenses. When a receivable is uncollectible, it is written Notes17 CashNotes toof and theagainst term to consolidated the thedeposits allowance consolidated (continued) account fnancial for trade fnancial receivables. statements statements Subsequent recoveries of amounts previously written of (a) Accounting policy policy (These (a)fnancial(These are creditedAccounting fstatementsnancial against statements policy are administrative expressed are expressed in Trinidad expenses in Trinidadand in Tobago the andstatement dollars) Tobago of dollars) proft or loss and other comprehensive income. ForFor the purposespurposes of of the the statement statement of ofcash cash fows, fows, cash cash and and cash cash equivalents equivalents comprise comprise cash incash hand, in hand, deposits deposits held at held call with at call with banks, short term deposits with a maturity of less than three months, investments in money market instruments The banks,expected short loss term rates deposits are based with ona maturity the payment of less prothanfles three of salesmonths, over investments a period of in 36 money months market before instruments 31 December and bank 17 Cash17 andandoverdrafts.Cash term bank and deposits overdrafts. In term the balancedeposits (continued) In the sheet, (continued)balance bank sheet, overdrafts bank are overdrafts included arein current included liabilities. in current liabilities. (a) 2018Accounting (a)and theAccounting corresponding policy policy historical credit losses experienced within this period. The historical loss rates are adjusted to refect current and forward-looking macroeconomic factors afecting the ability of the customers to (b) FinancialFor the purposesFor risk the managementmanagement purposes of the statement of the statement of cash f ows,of cash cash fows, and cashcash andequivalents cash equivalents comprise comprise cash in hand, cash deposits in hand, helddeposits at call held with at call with (b) settleFinancial the receivables. risk management TheThebanks, ef ectiveshortbanks, term interestinterest short deposits rate termrate on withondeposits short-term short-term a maturity with banka bank maturityof less deposits deposits than of lessthree was was than betweenmonths, between three investments0.01%months, 0.01% and investmentsand 2.00% in 2.00% money (2017 (2017 in market money– 0.01% – 0.01% instruments market and and 2.55%). instruments 2.55%). and These bank These and bank depositsoverdrafts. overdrafts.have In the a maturity balance In the ofsheet, balance 90 days. bank sheet, overdrafts bank overdrafts are included are includedin current in liabilities. current liabilities. On thatdeposits basis, have the aloss maturity allowance of 90 as days. at 31 December 2018 and 1 January 2018 (on adoption of IFRS 9) was determined for trade receivables. 18 (b)Share capitalTheFinancial(b) e fective Financial risk interest management risk rates management on term deposits was between 1.5% and 3.25% (2017 – 2.0% and 3.25%). These deposits haveThe e maturitiesfectiveThe interestefective in excess rate interest onof 90short-term rate days on and short-term bank are placeddeposits bank with wasdeposits leading between was f nancialbetween0.01% and institutions.2018 0.01% 2.00% and (2017 2.00% – 0.01% (2017 and– 0.01% 2.55%).2017 and These2.55%). These The Group doesdeposits not havedeposits hold a any maturity have collateral a maturityof 90 as days. security of 90 days. for current trade receivables. $’000 $’000 Authorised 18 Share18 capitalShare capital 13 SundryUnlimited debtors number and prepayments of ordinary shares of no par value 2018 20182018 20172017 2017 $’000 $’000 Issued and fully paid $’000 $’000 $’000 $’000 Sundry debtors 19,794 20,024 66,499,801AuthorisedAuthorised (2017 - 66,499,801) shares of no par value 391,184 390,916 ProvisionUnlimited for Unlimitedimpairment number ofnumber ordinary of ordinaryshares of shares no par of value no par value (3,764) (3,196) 16,030 16,828 (a) Accounting policy Prepayments 5,270 5,028 Issued OrdinaryandIssued fully andshares paid fully with paid discretionary dividends are classifed as equity. Incremental external costs directly attributable 21,300 21,856 66,499,801to66,499,801 the (2017 issue - 66,499,801)of (2017 new -ordinary 66,499,801) shares shares of shares no or par options of value no par are value shown in equity as a deduction, 391,184 391,184net of tax, from the 390,916 proceeds. 390,916 Movement on the Group’s provision for impairment of sundry debtors is as follows: (a) Accounting(a) Accounting policy policy At beginningWhere of the any year Group company purchases the Company’s equity share capital (treasury shares), 3,196 the consideration 2,690 paid, includingOrdinaryOrdinary shares any directly with shares discretionary attributable with discretionary incremental dividends dividends are costs classi (net arefed of classi as income equity.fed taxes)as Incremental equity. is deducted Incremental external from externalcosts equity directly attributable costs attributable directly to theattributable Increase in provisionto the issueto for the of impairment new issue ordinary of new ordinaryshares or shares options or areoptions shown are in shown equity in as equity a deduction, as a deduction, net of 568 tax, net from of tax, the fromproceeds. 506 the proceeds. At end of theCompany’s year equity holders until the shares are cancelled or reissued. Where such ordinary 3,764 shares are subsequently3,196 reissued, any consideration received, net of any directly attributable incremental transaction costs and the related There is no incomeWhereconcentration any taxWhere Groupefects, withany company is Grouprespect included company purchasesto in credit equity purchases risk. the attributable Company’sAs at the 31 Company’s Decemberto equity the Company’s share equity2018, capital sundry shareequity (treasury capital debtorsholders. (treasury shares), of $16,029,085 theshares), consideration the(2017 consideration - $ paid, paid, 16,827,957)including were fullyincluding any performing. directly any attributable directly attributable incremental incremental costs (net costs of income (net of taxes) income is deducted taxes) is deducted from equity from attributable equity attributable to the to the (b) MovementCompany’sCompany’s forequity the holdersyear equity: untilholders the untilshares the are shares cancelled are cancelled or reissued. or reissued. Where such Where ordinary such ordinaryshares are shares subsequently are subsequently 14 Deferred programming reissued,reissued, any consideration any consideration received, received, net of any net directly of any attributabledirectly attributable incremental incremental transaction Number transaction of costs and costs theShare relatedand the related income taxincome efects, tax is e includedfects, is included in equity in attributable equity attributable to the Company’s to the Company’s equity holders. equity 2018 sharesholders. 2017 Capital $’000 $’000 $’000 Opening(b) balance Movement(b) Movement for the year for :the year: 5,225 3,202 New contractsAs at 1 January 2018 Number66,499,801 2,042 Number of of6,278 390,916Share Share Value of share options granted 7,267shares - shares 9,480 Capital 268 Capital Usage As at 31 December 2018 66,499,801(3,877) (4,255) 391,184$’000 $’000 As at 1 January 2018 66,499,8013,390 5,225 390,916 Current portionValueAs at 1of January shareAs at 1options 20172018January granted 2018 66,387,28266,499,801(1,792) 66,499,801 - (3,860) 388,899390,916 268 390,916 Non-currentAsValue portion at 31 of DecembershareValue optionsof share 2018 grantedoptions granted 66,499,8011,598 - - 1,365 391,184 268 268 ShareAs at 31 options DecemberAs at 31exercised December 2018 2018 66,499,801 112,519 66,499,801 391,184 1,749 391,184 Accounting As policy at 31 December 2017 66,499,801 390,916 Deferred programmingAs at 1 JanuaryAs at is 1measured 2017January 2017 at cost less amortization based on usage. It represents programming 66,387,28266,387,282 66,387,282 contracted 388,899388,899 but 388,899 not yet broadcasted.Value of shareValue The optionscostof share of programmes granted options granted is expensed as they are broadcasted. - - - 268268 268 Share optionsShare exercised options exercised 112,519 112,519 112,519 1,7491,749 1,749 As at 31 DecemberAs at 31 December 2017 2017 66,499,80166,499,801 66,499,801 390,916390,916 390,916 Page 78 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018

Page 82 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018

Page 82 |ONE Page CARIBBEAN 82 |ONE MEDIACARIBBEAN LIMITED MEDIA | ANNUALLIMITED | ANNUAL REPORT REPORT2018 2018 ONE CARIBBEAN MEDIA LIMITED ONE CARIBBEAN MEDIA LIMITED ONEYear endedCARIBBEAN 31 December MEDIA LIMITED 2018 Year ended 31 December 2018 NotesYear ended to 31 the December consolidated 2018 fnancial statements Notes to the consolidated fnancial statements Notes(These fnancial to the statements consolidated are expressed f innancial Trinidad and statements Tobago dollars) ONE(These CARIBBEAN fnancial statements MEDIA LIMITED are expressed in Trinidad and Tobago dollars) (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars) Year ended 31 December 2018 18 Share capital (continued) Notes17 Cash to and the term consolidated deposits (continued) fnancial statements 18 TheShare shareholders capital (continued) approved a share incentive plan efective 1 January 2006, under which the Board can grant options to (These (a)fnancial Accounting statements policy are expressed in Trinidad and Tobago dollars) managementThe shareholders to subscribe approved for a ashare maximum incentive of 3,500,000 plan efective shares. 1 ShareJanuary options 2006, vest under three which years the from Board the datecan grant of the options grant. No to For the purposes of the statement of cash fows, cash and cash equivalents comprise cash in hand, deposits held at call with sharemanagement options towere subscribe granted for for a themaximum year 31 of December 3,500,000 2018 shares. (2017 Share – Nil). options vest three years from the date of the grant. No banks, short term deposits with a maturity of less than three months, investments in money market instruments and bank share options were granted for the year 31 December 2018 (2017 – Nil). 17 Cash andoverdrafts. term deposits In the balance (continued) sheet, bank overdrafts are included in current liabilities. The fair value of the options granted in 2015 of $1.05 was determined using the Black Scholes model. (a) Accounting policy The fair value of the options granted in 2015 of $1.05 was determined using the Black Scholes model. (b) FinancialFor the purposes risk management of the statement of cash fows, cash and cash equivalents comprise cash in hand, deposits held at call with Share options outstanding at the end of the year have the following expiry dates and exercise prices: Thebanks, ef ectiveshort terminterest deposits rate on with short-term a maturity bank of less deposits than three was betweenmonths, investments0.01% and 2.00% in money (2017 market – 0.01% instruments and 2.55%). and These bank Share options outstanding at the end of the year have the following expiry dates and exercise prices: depositsoverdrafts. have In thea maturity balance of sheet, 90 days. bank overdrafts are included in current liabilities. Exercise Grant - vest Expiry date Exercise price Share options 18 (b)Share capitalFinancial risk management Grant - vest Expiry date price 2018 ShareShare options options 2017 The efective interest rate on short-term bank deposits was between 0.01% and 2018 2.00% (2017 – 0.01% and 2.55%).2017 These 2018 ‘000 2017 ‘000 deposits have a maturity of 90 days. $’000 $’000 2009 - 2012 04-May-19 17.50 ‘000 441 ‘000 441 Authorised 2009 - 2012 04-May-1930-Sep-19 17.50 441155 441155 18 Share capital Unlimited number of ordinary shares of no par value 20092012 - 20122015 30-Sep-1918-Oct-22 17.5015.06 155631 155638 2018 2017 20122014 - 20152017 18-Oct-2205-Jun-24 15.0622.60 631588 638607 Issued and fully paid $’000 $’000 20142015 - 20172018 24-Apr-2505-Jun-24 22.6022.30 588340 607347 66,499,801Authorised (2017 - 66,499,801) shares of no par value 391,184 390,916 2015 - 2018 20-Nov-2524-Apr-25 22.3022.00 340362 347369 Unlimited number of ordinary shares of no par value 2015 - 2018 20-Nov-25 22.00 2,517 362 2,557 369 (a) Accounting policy 2,517 2,557 Issued Ordinaryand fully shares paid with discretionary dividends are classifed as equity. Incremental external costs directly attributable Reconciliation of movement 66,499,801to the (2017 issue - 66,499,801)of new ordinary shares shares of no or par options value are shown in equity as a deduction, 391,184 net of tax, from the 390,916 proceeds. Reconciliation of movement At the beginning of the year 2,557 3,082 (a) WhereAccounting any Group policy company purchases the Company’s equity share capital (treasury shares), the consideration paid, AtLapsed the beginning during the of year the year 2,557 (40) 3,082(412) includingOrdinary shares any directly with discretionary attributable incremental dividends are costs classi (netfed of as income equity. taxes) Incremental is deducted external from costs equity directly attributable attributable to the LapsedExercised during during the the year year (40)- (412)(113) Company’sto the issue equityof new holders ordinary until shares the or shares options are are cancelled shown inor equity reissued. as aWhere deduction, such ordinarynet of tax, shares from theare proceeds.subsequently ExercisedAt the end during of the theyear year 2,517- 2,557(113) reissued, any consideration received, net of any directly attributable incremental transaction costs and the related At the end of the year 2,517 2,557 incomeWhere any tax Groupefects, company is included purchases in equity the attributable Company’s to equity the Company’s share capital equity (treasury holders. shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the No share options were exercised in 2018. The weighted average price of share options exercised in 2017 was $15.54. (b) MovementCompany’s forequity the holdersyear: until the shares are cancelled or reissued. Where such ordinary shares are subsequently wasNo share $15.54. options were exercised in 2018. The weighted average price of share options exercised in 2017 reissued, any consideration received, net of any directly attributable incremental transaction Number of costs and theShare related was $15.54. income tax efects, is included in equity attributable to the Company’s equity holders. shares Capital The model inputs for share options granted during the year are as follows: $’000 The model inputs for share options granted during the year are as follows: 2018 2017 (b) Movement for the year: Maturity 1 - 20187 years 2 - 20178 years As at 1 January 2018 Number66,499,801 of 390,916Share ExpectedMaturity price volatility of the Company’s shares 1 - 14%7 years 2 - 14%8 years Value of share options granted shares - Capital 268 InterestExpected rate price volatility of the Company’s shares 1%14% - 4% 1%14% - 4% As at 31 December 2018 66,499,801 391,184$’000 Interest rate 1% - 4% 1% - 4% The expected price volatility of the parent company shares is based on the historic volatility (based on the remaining life As at 1 January 20172018 66,387,28266,499,801 388,899390,916 ofThe the expected options), price adjusted volatility for anyof the expected parent changescompany to shares future is volatility based on due the to historic publicly volatility available (based information. on the remaining life Value of share options granted - 268 of the options), adjusted for any expected changes to future volatility due to publicly available information. ShareAs at 31 options December exercised 2018 66,499,801 112,519 391,184 1,749 As at 31 December 2017 66,499,801 390,916 As at 1 January 2017 66,387,282 388,899 Value of share options granted - 268 Share options exercised 112,519 1,749 As at 31 December 2017 66,499,801 390,916

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Page 82 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

18 Share capital (continued) (c) Dividend distribution Dividend distribution to the Group’s shareholders is recognized as a liability in the Group’s fnancial statements in the period in which the dividends are approved by the Group’s Directors.directors.

A fnal dividend in respect of the year ended 31 December 2018 of 40 cents per share was approved on 5 April 2019 by the Board of Directors. This brings the total declared dividends for 2018 to 60 cents (2017 – 67 cents). These fnancial statements do not refect the fnal dividend payable which will be accounted for in shareholders’ equity as an appropriation of retained earnings in the year ending 31 December 2019.

19 Other reserves Other reserves comprise the following: Foreign Revaluation currency of land and translation buildings Other - AFS Total $’000 $’000 $’000 $’000 Balance at 1 January 2017 10,215 12,516 (6,647) 16,084 Currency translation diferences 654 - - 654 Depreciation transfer - (223) - (223) Revaluation of land and buildings (Note 7) - - 129 129 Unrealised gains on revaluation of fnancial investments - - (104) (104) Balance at 31 December 2017 10,869 12,293 (6,622) 16,540 IFRS 9 initial application adjustments - - 10,642 10,642 Currency translation diferences 948 - - 948 Depreciation transfer - (224) (224) - (224) Unrealised gains on revaluation of fnancial investments - - (104) (104) Balance at 31 December 2018 11,817 12,069 3,916 27,802

20 Non-controlling interests 2018 2017 $’000 $’000 At beginning of the year 13,827 4,938 Share of total comprehensive income of subsidiaries 723 4,690 Non-controlling interest arising on investment (Note 32) 8,200 - Non-controlling interest arising on acquisition (Note 32) - 4,249 Other adjustment - (50) At end of the year 22,750 13,827

Page 84 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEANONE MEDIA CARIBBEANONE LIMITED CARIBBEAN MEDIA LIMITED MEDIA LIMITED Year ended 31 DecemberYear endedYear 2018 31 ended December 31 December 2018 2018 Notes to theNotes consolidatedNotes to the to consolidated the f nancialconsolidated statements fnancial fnancial statements statements (These fnancial (Thesestatements f(Thesenancial are f expressedstatementsnancial statements in are Trinidad expressed are and expressed Tobago in Trinidad dollars) in and Trinidad Tobago and dollars) Tobago dollars)

18 Share capital (continued) 12. Trade receivables12. Trade21 (continued) receivablesUnallocated (continued) shares in ESOP (c) Dividend distribution Accounting policyAccounting (continued)The Grouppolicy operates(continued) an Employee Share Ownership Plan (ESOP) that covers its present and future permanent employees Dividend distribution to the Group’s shareholders is recognized as a liability in the Group’s fnancial statements in (b) Impairment (b) (continued)Impairmentwhich enables (continued) them to acquire interests in shares of the Company on the terms and in the manner appearing in the Trust the period in which the dividends are approved by the Group’s directors. Previous accountingPreviousDeed policy and accounting Rules for impairment dated policy 21 December offor trade impairment receivables 2000 andof trade (IASwithin receivables39 the2017) terms (IAS of Section39 2017) 35 of the Income Tax Act. The cost of the shares A provision for impairmentAso provision acquired offor and trade impairment which and remain other of tradereceivables unallocated and other is toestablished receivablesemployees where ishave established there been is recognised objective where there evidence in Shareholders’ is objective that the evidence Equity under that the ‘Unallocated A fnal dividend in respect of the year ended 31 December 2018 of 40 cents per share was approved on 5 April Group will not beGroupshares able willheldto collect not by beESOP’. all able amounts Any to collectfurther due all dealingsaccording amounts in to thedue the shares according original will terms beto creditedthe of original receivables. against terms the Tradeof same receivables. receivables account Trade at fair receivables value. The fair value 2019 by the Board of Directors. This brings the total declared dividends for 2018 to 60 cents (2017 – 67 cents). that are less thanthatof 2 shares months are less was past than derived due 2 months are from not pastthe considered closing due are market impaired.not considered price Payments prevailing impaired. on oninvoices Paymentsthe Trinidad are due on and invoices 30 Tobagodays areafter Stock due issue. 30 Exchange days after at issue. the year-end. These fnancial statements do not refect the fnal dividend payable which will be accounted for in shareholders’ The creation andThe release creation of provision and release for ofimpaired provision receivables for impaired have receivables been included have inbeen ‘administrative included in expenses’‘administrative in expenses’ in equity as an appropriation of retained earnings in the year ending 31 December 2019. the statement oftheAs pro atstatement f31t or December loss ofand pro other2018,ft or comprehensivetheloss ESOPand other held comprehensive3,163,003income. Signi(2017f cantincome.– 3,004,564) fnancial Signi sharesdifcantfculties fwithnancial of a themarket di fdebtor,culties value of of the $32,547,301 debtor, (2017 - probability that theprobability$39,239,606). debtor will that enter the debtor bankruptcy will enter or f nancialbankruptcy reorganisation, or fnancial and reorganisation, default or delinquency and default in or payments delinquency in payments 19 Other reserves are considered are indicators considered that theindicators trade receivables that the trade are receivablesimpaired. The are carrying impaired. amount The carrying of the amountasset is reduced of the asset is reduced Other reserves comprise the following: through the usethrough Theof an movements allowance the use ofaccount,in anunallocated allowance and the shares account, amount held and of by the the the loss amount ESOP is recognised are of as the follows: loss in isthe recognised statement in of the pro statementft or loss of proft or loss Foreign Revaluation and other comprehensiveand other comprehensiveincome within administrative income within expenses. administrative 2018When expenses. a receivable When2017 is uncollectible, a receivable isit2018 uncollectible,is written it is written2017 currency of land and of against the allowanceo f against account the allowance for trade account receivables. for trade Subsequent receivables. $’000 recoveries Subsequent of amounts $’000recoveries previously of amountsNo. writtenof shares previously of writtenNo. ofof shares translation buildings Other - AFS Total are credited againstare credited administrative against expenses administrative in the expensesstatement in of the pro statementft or loss andof pro otherft or comprehensive loss and other comprehensiveincome. income. $’000 $’000 $’000 $’000 At beginning of the year 38,544 39,439 3,004,564 3,421,705 Balance at 1 January 2017 10,215 12,516 (6,647) 16,084 The expected lossTheSale rates expected of sharesare based loss onrates the are payment based on pro thefles payment of sales overprof lesa - period of sales of over36 (12,600) months a period before of 36 31 months December before- 31 December (1,093,186) Currency translation diferences 654 - - 654 2018 and the corresponding2018Allocation and the to employeeshistoricalcorresponding credit historicallosses experienced credit losses within experienced - this period. within The (811) this historical period. loss The rates historical - are loss rates are(70,381) Depreciation transfer - (223) - (223) adjusted to refectadjustedRe-purchase current to andre fromf ectforward-looking ex-employeescurrent and forward-looking macroeconomic macroeconomic factors 1,965 afecting factors the 12,516 ability af ecting of the the customers 158,439ability of tothe customers 746,426 to Revaluation of land and buildings (Note 7) - - 129 129 settle the receivables.settleAt end the of receivables.the year 40,509 38,544 3,163,003 3,004,564 Unrealised gains on revaluation of fnancial investments - - (104) (104) Balance at 31 December 2017 10,869 12,293 (6,622) 16,540 On that basis, theOnEmployees loss that allowance basis, are the required as loss at 31 allowance December to sell any as at 2018allocated 31 Decemberand 1 ESOP January 2018shares 2018 and back (on 1 January to adoption the plan 2018 of at IFRS(on market adoption 9) was value determined of on IFRS exiting 9) was the determined Company’s employ. IFRS 9 initial application adjustments 10,642 10,642 for trade receivables.for trade receivables. Currency translation diferences 948 - - 948 As at 31 December 2018, the amount of shares held in trust by the ESOP for employees was 1,464,283 (2017 – 1,622,722). Depreciation transfer - (224) (224) - (224) The Group doesThe not Grouphold any does collateral not hold as any security collateral for current as security trade for receivables. current trade receivables. Unrealised gains on revaluation of fnancial investments - - (104) (104) 22 Retirement beneft obligation Balance at 31 December 2018 11,817 12,069 3,916 27,802 13 Sundry debtors13 Sundry and prepayments Thedebtors amounts and recognisedprepayments in the consolidated balance sheet are as follows: 2018 2018 2017 20182017 2017 Trinidad $’000 Barbados $’000 $’000 Trinidad $’000 Barbados 20 Non-controlling interests Sundry debtors Sundry debtors $’000 19,794 $’000 19,794 20,024 $’000 20,024 $’000 2018 2017 Provision for impairmentProvision for impairment (3,764) (3,764) (3,196) (3,196) $’000 $’000 Fair value of plan assets 136,563 16,030 127,803 16,030 16,828 130,142 16,828 135,045 At beginning of the year 13,827 4,938 Prepayments PrepaymentsPresent value of defned beneft obligation (149,613) 5,270 (116,229) 5,270 5,028 (144,523) 5,028 (120,451) Share of total comprehensive income of subsidiaries 723 4,690 (13,050) 21,300 11,574 21,300 21,856 (14,381) 21,856 14,594 Non-controlling interest arising on investment (Note 32) 8,200 - Movement on theMovement Group’s(a) provision on theAccounting Group’s for impairment provision policy offor sundry impairment debtors of issundry as follows: debtors is as follows: Non-controlling interest arising on acquisition (Note 32) - 4,249 A defned contribution plan is a pension plan under which the Group pays fxed contributions into a separate entity Other adjustment - (50) At beginning of Atthe beginning year ofand the the year Group has no legal or constructive obligations to pay further 3,196 contributions 3,196 if2,690 the fund does not2,690 hold sufcient At end of the year 22,750 13,827 Increase in provisionIncrease for impairmentin provisionassets for to impairmentpay all employees the bene fts relating to employee service 568 in the current 568 506 and prior periods. 506 A defned At end of the yearAt end of the yearbene ft plan is a pension plan that is not a de fned contribution plan. 3,764 3,764 3,196 3,196

There is no concentrationThere is no with concentration respect to withcredit respect risk. As to at credit 31 December risk. As at 2018, 31 December sundry debtors 2018, sundryof $16,029,085 debtors (2017of $16,029,085 - $ (2017 - $ Typically defned beneft plans defne an amount of pension beneft that an employee will receive on retirement, 16,827,957) were16,827,957) fully performing. were fully performing. usually dependent on one or more factors such as age, years of service and compensation.

14 Deferred14 programming Deferred programming The asset or liability recognised in the balance sheet in respect of de2018fned bene ft pension20182017 plans is the2017 present value of the defned beneft obligation at the end of the reporting period $’000less the fair value$’000 $’000of plan assets. The$’000 defned beneft Opening balanceOpening balanceobligation is calculated annually by independent actuaries using the5,225 projected unit 5,225 3,202 credit method. 3,202The present value New contracts New contracts of the defned beneft obligation is determined by discounting the 2,042 estimated future 2,042 6,278 cash outf ows using 6,278 interest rates of high-quality corporate bonds that are denominated in the currency 7,267 in which the 7,267 bene 9,480 f ts will be paid, 9,480 and that have Usage Usage terms to maturity approximating to the terms of the related pension (3,877) obligation. (3,877)In (4,255) countries where (4,255) there is no deep market in such bonds, the market rates on Government bonds are 3,390 used. 3,390 5,225 5,225 Current portion Current portion (1,792) (1,792) (3,860) (3,860) Non-current portionNon-current portionActuarial gains and losses arising from experience adjustments and 1,598 changes in actuarial 1,598 1,365 assumptions 1,365 are charged or credited to equity in other comprehensive income in the period in which they arise. Accounting policyAccounting policy Deferred programmingDeferred is programming measuredPast-service at cost is measured costsless amortization are atrecognised cost less based amortization immediately on usage. basedin It income. represents on usage. programming It represents contracted programming but contracted but not yet broadcasted.not yet The broadcasted. cost of programmes The cost ofis expensedprogrammes as they is expensed are broadcasted. as they are broadcasted. The Group does not have any defned contribution plans.

Page 84 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Page 78 |ONE CARIBBEAN Page MEDIA 78 |ONE LIMITED CARIBBEAN | ANNUAL MEDIA LIMITED REPORT | ANNUAL 2018 REPORT 2018 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 85 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars)

22 Retirement beneft obligation (continued) (a) Accounting policy (continued) The Group operates defned beneft pension plans in Trinidad and Barbados under broadly similar regulatory frameworks. All of the plans are fnal salary pension plans, which provide benefts to members in the form of a guaranteed level of pension payable for life. The level of benefts provided depends on members’ length of service and their salary in the fnal years leading up to retirement. The beneft payments are from trustee administered funds. Plan assets held in trusts are governed by local regulations and practice in each country, as is the nature of the relationship between the Group and the trustees (or equivalent) and their composition. Responsibility for governance of the plans – including investment decisions and contribution schedules – lies jointly with the Company and the Board of Trustees. The Board of Trustees must be composed of representatives of the Companies and plan participants in accordance with the plan’s regulations.

Investments are well diversifed, such that the failure of any single investment would not have a material impact on the portfolio of the assets. The largest proportion of assets is invested in equities and bonds.

The expected return on the plan assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields are based on gross redemption yields as at the balance sheet date. Expected returns on equity and property investments refect long-term real rates of return experienced in the respective markets.

The Group ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the pension schemes. Within this framework, the Group’s ALM objective is to match assets to the pension obligations by investing in long-term fxed interest securities with maturities that match the beneft payments as they fall due and in the appropriate currency. The Group actively monitors how the duration and the expected yield of the investments are matching the expected cash outfows arising from the pension obligations. The Group has not changed the processes used to manage its risks from previous periods. The Group does not use derivatives to manage its risk. Investments are well diversifed, such that the failure of any single investment would not have a material impact on the overall level of assets. In 2018, 50% (2017 – 50%) of the plan assets comprised of bonds and 32% (2017 – 32%) equities. The Group believes that equities ofer the best returns over the long term with an acceptable level of risk. Equity investments must satisfy the requirements of the Insurance Act Chap. 84:01.

(b) Movement in in the the fair fair value value of ofthe the fund fund assets: assets: 2018 2018 2017 2017 Trinidad Barbados Trinidad Barbados $’000 $’000 $’000 $’000

At beginning of the year 130,142 135,045 124,315 128,814 Expected return on plan assets 7,200 10,510 6,998 10,459 Other plan expenses (104) (105) Remeasurement recognised in OCI (4,056) (14,984) (2,878) (1,117) Contributions 5,866 3,527 6,250 2,991 Beneft payments (2,589) (6,191) (4,543) (5,997) At end of the year 136,563 127,803 130,142 135,045

Page 86 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Year ended 31 December 2018 Notes to the consolidated fnancial statements Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars) (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars)

22 Retirement beneft obligation (continued) 22 Retirement beneft obligation (continued) (a) Accounting policy (continued) (b) MovementMovement in in the the fair fair value value of ofthe the fund fund assets: assets: (continued) (continued) The Group operates defned beneft pension plans in Trinidad and Barbados under broadly similar regulatory Plan assets comprise the following: frameworks. All of the plans are fnal salary pension plans, which provide benefts to members in the form of a guaranteed level of pension payable for life. The level of benefts provided depends on members’ length of service ONE CARIBBEAN MEDIA LIMITED 2018 2018 and their salary in the fnal years leading up to retirement. The beneft payments are from trustee administered Year ended 31 December 2018 Trinidad Barbados Total Trinidad Barbados Total funds. Plan assets held in trusts are governed by local regulations and practice in each country, as is the nature $’000 $’000 $’000 % % % Notes to theBonds consolidated fnancial 84,958 statements 46,367 131,325 62% 36% 50% of the relationship between the Group and the trustees (or equivalent) and their composition. Responsibility for (These fnancial statements are expressed in Trinidad and Tobago dollars) governance of the plans – including investment decisions and contribution schedules – lies jointly with the Company Equity instruments 34,320 48,796 83,116 25% 38% 31% and the Board of Trustees. The Board of Trustees must be composed of representatives of the Companies and plan Other 17,285 13,317 30,602 13% 11% 12% participants in accordance with the plan’s regulations. 22 RetirementMortgages bene ft obligation (continued) - 12,832 12,832 0% 10% 5% (b) MovementProperty in the fair value of the fund assets: - (continued) 6,492 6,492 0% 5% 2% Investments are well diversifed, such that the failure of any single investment would not have a material impact on 136,563 127,803 264,366 100% 100% 100% Plan assets comprise the following: the portfolio of the assets. The largest proportion of assets is invested in equities and bonds. 20182017 2017 The expected return on the plan assets is determined by considering the expected returns available on the assets Trinidad BarbadosBarbados TotalTotal TrinidadTrinidad Barbados TotalTotal underlying the current investment policy. Expected yields are based on gross redemption yields as at the balance $’000$’000 $’000$’000 $’000$’000 % %% %% sheet date. Expected returns on equity and property investments refect long-term real rates of return experienced Bonds 80,18684,958 51,30446,367 131,490131,325 62% 38%36% 50% in the respective markets. Equity instruments 33,67434,320 50,99348,796 84,66783,116 26%25% 38% 32%31% Other 16,28217,285 10,76313,317 27,04530,602 12%13% 11%8% 12%9% The Group ensures that the investment positions are managed within an asset-liability matching (ALM) framework Mortgages - 12,83214,747 12,83214,747 0% 10%11% 5%6% that has been developed to achieve long-term investments that are in line with the obligations under the pension Property - 6,4927,238 6,4927,238 0% 5% 2%3% schemes. Within this framework, the Group’s ALM objective is to match assets to the pension obligations by investing 136,563130,142 127,803135,045 264,366265,187 100% 100% 100% in long-term fxed interest securities with maturities that match the beneft payments as they fall due and in the 2017 appropriate currency. The Group actively monitors how the duration and the expected yield of the investments 2018 2017 Trinidad Barbados 2018 Total Trinidad 2017 Barbados Total are matching the expected cash outfows arising from the pension obligations. The Group has not changed the Trinidad Barbados Total Trinidad Barbados Total processes used to manage its risks from previous periods. The Group does not use derivatives to manage its risk. $’000 $’000 $’000 % % % Bonds 80,186$’000 $’000 51,304 $’000 131,490 $’000 62% $’000 38% $’000 50% Investments are well diversifed, such that the failure of any single investment would not have a material impact on Local 125,809 127,803 253,612 119,470 135,045 254,515 the overall level of assets. In 2018, 50% (2017 – 50%) of the plan assets comprised of bonds and 32% (2017 – 32%) Equity instruments 33,674 50,993 84,667 26% 38% 32% InternationalOther 10,75416,282 10,763 - 10,754 27,045 10,67212% 8% - 10,672 9% equities. The Group believes that equities ofer the best returns over the long term with an acceptable level of risk. 136,563 127,803 264,366 130,142 135,045 265,187 Equity investments must satisfy the requirements of the Insurance Act Chap. 84:01. Mortgages - 14,747 14,747 0% 11% 6% Property - 7,238 7,238 0% 5% 3% (c) Movement in in the the present present value value of the of thefund fund obligations: obligations: (b) Movement in the fair value of the fund assets: 130,142 135,045 265,187 100% 100% 100% 2018 2018 2017 2017 2018 2017 Trinidad Barbados Trinidad Barbados Trinidad Barbados Trinidad Barbados 2018 2017 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Trinidad Barbados Total Trinidad Barbados Total

$’000 $’000 $’000 $’000 $’000 $’000 At beginning of the year 144,523 120,451 148,772 116,192 At beginning of the year 130,142 135,045 124,315 128,814 Local 125,809 127,803 253,612 119,470 135,045 254,515 Interest cost 8,094 9,596 8,466 9,502 Expected return on plan assets 7,200 10,510 6,998 10,459 International 10,754 - 10,754 10,672 - 10,672 Current service cost 6,666 2,777 7,429 2,820 Other plan expenses (104) (105) 136,563 127,803 264,366 130,142 135,045 265,187 Beneft payments (2,589) (6,191) (4,543) (5,997) Remeasurement recognised in OCI (4,056) (14,984) (2,878) (1,117) Contributions - 1,082 1,187 Contributions 5,866 3,527 6,250 2,991 (c) Movement in the present value of the fund obligations: Remeasurement recognised in OCI Beneft payments (2,589) (6,191) (4,543) (5,997) - Financial assumption changes (2,791)2018 - (1,335)2017 - At end of the year 136,563 127,803 130,142 135,045 - Experience Trinidad (4,290) Barbados (11,486) Trinidad(14,266) Barbados (3,253) At end of the year 149,613 $’000 116,229 $’000 144,523 $’000 120,451 $’000

AtThe beginning principal ofactuarial the year assumptions used are as follows:144,523 120,451 148,772 116,192 Interest cost 8,094 9,596 8,466 9,502 Current service cost 6,666 2,777 PerPer Annum Annum 7,429 2,820 Bene ft payments (2,589) 2018 (6,191) (4,543) 20172017 (5,997) Contributions Trinidad - Barbados 1,082 Trinidad Barbados 1,187 RemeasurementDiscount rate recognised in OCI 5.50% 7.50% 5.40% 7.75% Expected- Financial rate assumption of salary increaseschanges (2,791)4.00% 6.50% - (1,335)4.00% 6.75% - Expected- Experience rate of pension increases (4,290)0.00% (11,486)3.50% (14,266)0.00% 3.75% (3,253) At end of the year 149,613 116,229 144,523 120,451

The principal actuarial assumptions used are as follows:

Page 86 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA PerLIMITED Annum | ANNUAL REPORT 2018 | Page 87 2018 2017 Trinidad Barbados Trinidad Barbados Discount rate 5.50% 7.50% 5.40% 7.75% Expected rate of salary increases 4.00% 6.50% 4.00% 6.75% Expected rate of pension increases 0.00% 3.50% 0.00% 3.75%

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 87 ONE CARIBBEAN MEDIA LIMITED ONE CARIBBEAN MEDIA LIMITED YearONE endedCARIBBEAN 31 December MEDIA LIMITED 2018 Year ended 31 December 2018 Notes to the consolidated fnancial statements (TheseNotes fnancial to the statements consolidated are expressed f innancial Trinidad and statements Tobago dollars) (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars) 22 Retirement beneft obligation (continued) 22 (c)Retirement Movement bene inft the obligation present value (continued) of the fund obligations: (continued) (c) MovementMovement in in the the present present value value of theof the fund fund obligations: obligations: (continued) (continued) As at the last valuation date, the present value of the defned beneft obligation comprised the following: As at the last valuation date, the present value of the defned beneft obligation comprised the following: Trinidad Barbados Trinidad2018 Trinidad2017 Barbados2018Barbados 2017 Relating to: 2018$M 2017$M 2018$M 2017$M ActiveRelating employees to: 117.8$M 112.8$M $M 67.8 $M 73.7 DeferredActive employees members 117.8 15.9 112.8 17.1 67.8 3.6 73.7 2.2 MembersDeferred members in retirement 15.815.9 14.617.1 51.2 3.6 50.9 2.2 Members in retirement 15.8 14.6 51.2 50.9 (d) The amounts recognised in the consolidated statement of proft or loss are as follows: (d) The amounts recognised in the consolidated statement of proft or loss are as follows: 2018 2017 $’0002018 $’0002017 Current service cost $’000 7,577 $’000 8,261 NetCurrent interest service cost cost on net defned beneft asset / (liability) 7,577 (20) 8,261 511 PlanNet interest administration cost on netexpenses defned beneft asset / (liability) 103 (20) 105511 TotalPlan administration included in sta fexpenses costs (Note 25) 7,660 103 8,877 105 Total included in staf costs (Note 25) 7,660 8,877 The actual return on the plans’ assets is $1,597,622 (2017 – $13,462,637). The actual return on the plans’ assets is $1,597,622 (2017 – $13,462,637). 22 Retirement beneft obligation (continued) 22 RetirementThe sensitivity bene of theft obligationdefned bene (continued)ft obligation to changes in the weighted principal assumptions is: The sensitivity of the defned beneft obligation to changes in the weighted principal assumptions is: Trinidad ChangeChange in in IncreaseIncrease Trinidad in in Decrease Decrease in in assumptionChangeassumption in assumption Increaseassumption in assumptionDecrease assumption in assumption2018 2017 assumption 2018 2017 assumption 2018 2017 2018 2017 2018 2017 2018 2017 Discount rate 0.50% 0.50% Decrease by 8.50% 9.00% Increase by 9.90% 10.30% SalaryDiscount growth rate rate 0.50% 0.50% DecreaseIncrease byby 5.60%8.50% 5.90%9.00% DecreaseIncrease by by 5.10%9.90% 10.30%5.40% PensionSalary growth growth rate rate 0.50%N/A 0.50%N/A IncreaseN/A by 5.60%N/A 5.90%N/A DecreaseN/A by 5.10%N/A 5.40%N/A LifePension expectancy growth rate + / +-N/A 1 / year- 1 year N/A IncreaseN/A by 2.20%N/A 2.20%N/A DecreaseN/A by 2.30%N/A 2.30%N/A Life expectancy + / - 1 year Increase by 2.20% 2.20% Decrease by 2.30% 2.30%

Barbados ChangeChange in in IncreaseIncrease Barbados in in Decrease in assumptionChangeassumption in assumption Increaseassumption in assumptionassumptionDecrease in assumption2018 2017 assumption 2018 2017 assumption 2018 2017 2018 2017 2018 2017 2018 2017 Discount rate 1.00% 1.00% Decrease by 12.80% 13.46% Increase by 16.49% 17.32% DiscountSalary growth rate rate 1.00%0.50% 1.00%0.50% DecreaseIncrease byby 12.80%3.83% 13.46%4.34% DecreaseIncrease by by 16.49% 3.47% 17.32%3.97% PensionSalary growth growth rate rate 0.25%0.50% 0.25%0.50% Increase by 2.45%3.83% 2.44%4.34% Decrease by 2.34%3.47% 2.34%3.97% LifePension expectancy growth rate + /0.25% -+ 1 /year - 1 0.25%year Increase by 1.32%2.45% 1.10%2.44% 1.10%Decrease Decrease by by2.34%1.36% 1.36% 1.20%2.34% 1.20%Life expectancy + / - 1 year Increase by 1.32% 1.10% Decrease by 1.36% 1.20%

These sensitivities were calculated by recalculating the defned beneft obligations using the revised assumptions. ThereThese weresensitivities no changes were incalculated the methods by recalculating in preparing the the de sensitivityfned bene analysisft obligations compared using to thethe priorrevised year. assumptions. There were no changes in the methods in preparing the sensitivity analysis compared to the prior year.

Page 88 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Page 88 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED ONE CARIBBEAN MEDIA LIMITED YearONE endedCARIBBEAN 31 December MEDIA LIMITED 2018 Year ended 31 December 2018 Year ended 31 December 2018 ONE CARIBBEAN MEDIA LIMITED Notes to the consolidated fnancial statements NotesYear ended to 31 the December consolidated 2018 fnancial statements (TheseNotes fnancial to the statements consolidated are expressed f innancial Trinidad and statements Tobago dollars) (These fnancial statements are expressed in Trinidad and Tobago dollars) Notes(These fnancial to the statements consolidated are expressed f nancialin Trinidad andstatements Tobago dollars) 22 Retirement beneft obligation (continued) (These fnancial statements are expressed in Trinidad and Tobago dollars) 22 (c)Retirement Movement bene inft the obligation present value (continued) of the fund obligations: (continued) 22 Retirement beneft obligation (continued) (c) Movement in the present value of the fund obligations: (continued) (e) Funding As at the last valuation date, the present value of the defned beneft obligation comprised the following: As at the last valuation date, the present value of the defned beneft obligation comprised the following: The Group meets the balance of the cost of funding the defned beneft pension plan and the Group must pay Trinidad Barbados contributions at least equal to those paid by members which are fxed. The funding requirements are based on Trinidad2018 2017 Barbados2018 2017 triennial actuarial valuations of the plans and the assumptions used to determine the funding required may difer Relating to: 2018$M 2017$M 2018$M 2017$M from those set out above. The Group expects to pay $5,587,292 to the funds for the year ending 31 December ActiveRelating employees to: 117.8$M 112.8$M $M 67.8 $M 73.7 2019. The Group has no legal obligation to immediately settle any defcits arising on the plans with immediate DeferredActive employees members 117.8 15.9 112.8 17.1 67.8 3.6 73.7 2.2 contributions but will continue to contribute at rates recommended by the actuary. MembersDeferred members in retirement 15.815.9 14.617.1 51.2 3.6 50.9 2.2 Members in retirement 15.8 14.6 51.2 50.9 (f) Risk exposure (d) The amounts recognised in the consolidated statement of proft or loss are as follows: Through its defned beneft pension plans, the Group is exposed to a number of risks, the most of which are detailed (d) The amounts recognised in the consolidated statement of proft or loss are as follows: below: 2018 2017 $’0002018 $’0002017 $’000 $’000 (g) Asset volatility Current service cost 7,577 8,261 The Plans’ liabilities are calculated using a discount rate set with reference to Government bond yields in the NetCurrent interest service cost cost on net defned beneft asset / (liability) 7,577 (20) 8,261 511 Net interest cost on net defned beneft asset / (liability) (20) 511 respective markets. If assets underperform this yield, a defcit will result, all other things being equal. The Plans hold Plan administration expenses 103 105 a signifcant proportion of equities, which are expected to outperform government bonds in the long-term while TotalPlan administration included in sta fexpenses costs (Note 25) 7,660 103 8,877 105 Total included in staf costs (Note 25) 7,660 8,877 providing volatility and risk in the short-term. The actual return on the plans’ assets is $1,597,622 (2017 – $13,462,637). However, given the long-term nature of the liabilities and the strength of the supporting sponsor, a level of The actual return on the plans’ assets is $1,597,622 (2017 – $13,462,637). continuing equity investment would be an appropriate element of a long-term investment strategy to manage the 22 Retirement beneft obligation (continued) Plans efciently. 22 TheRetirement sensitivity bene of theft obligationdefned bene (continued)ft obligation to changes in the weighted principal assumptions is: The sensitivity of the defned beneft obligation to changes in the weighted principal assumptions is: (h) Change in bond yields Trinidad A decrease in Government bond yields will increase the Plans’ liabilities. This will be partially ofset by an increase in Change in Increase Trinidad in Decrease in the value of the Plans’ bond holdings. assumptionChange in assumption Increase in assumptionDecrease in assumption2018 2017 assumption 2018 2017 assumption 2018 2017 (i) Infation 2018 2017 2018 2017 2018 2017 The majority of the Plans’ liabilities are linked to infation in the form of salary infation. This is expected to be Discount rate 0.50% 0.50% Decrease by 8.50% 9.00% Increase by 9.90% 10.30% impacted by the general level of price increases and other infationary factors in the economy. Higher infation will SalaryDiscount growth rate rate 0.50% 0.50% DecreaseIncrease byby 5.60%8.50% 5.90%9.00% DecreaseIncrease by by 5.10%9.90% 10.30%5.40% lead to higher liabilities although there is a cap on the level of infationary increases. PensionSalary growth growth rate rate 0.50%N/A 0.50%N/A IncreaseN/A by 5.60%N/A 5.90%N/A DecreaseN/A by 5.10%N/A 5.40%N/A LifePension expectancy growth rate + / -N/A 1 year N/A IncreaseN/A by 2.20%N/A 2.20%N/A DecreaseN/A by 2.30%N/A 2.30%N/A The majority of the Plans’ assets are either unafected (fxed interest bonds) or loosely correlated (equities) with Life expectancy + / - 1 year Increase by 2.20% 2.20% Decrease by 2.30% 2.30% infation. Therefore, an increase in infation is likely to increase the Plans’ defcit.

Barbados (j) Life expectancy Change in Increase Barbados in Decrease in The majority of the Plans’ obligations are to provide benefts for the life of its members. Therefore, increases in life assumptionChange in assumption Increase in assumptionDecrease in expectancy will result in an increase in the Plans’ liabilities. assumption2018 2017 assumption 2018 2017 assumption 2018 2017 2018 2017 2018 2017 2018 2017 The weighted average duration of the defned beneft plans is as follows: Discount rate 1.00% 1.00% Decrease by 12.80% 13.46% Increase by 16.49% 17.32% - Trinidad – 20.88 years (2017 – 21.7 years) and DiscountSalary growth rate rate 1.00%0.50% 1.00%0.50% DecreaseIncrease byby 12.80%3.83% 13.46%4.34% DecreaseIncrease by by 16.49% 3.47% 17.32%3.97% - Barbados – 15 years (2017 – 15.48 years). PensionSalary growth growth rate rate 0.25%0.50% 0.25%0.50% Increase by 2.45%3.83% 2.44%4.34% Decrease by 2.34%3.47% 2.34%3.97% LifePension expectancy growth rate + /0.25% - 1 year 0.25% Increase by 1.32%2.45% 2.44% 1.10% Decrease Decrease by by2.34% 1.36% 2.34% The expected maturity analysis of undiscounted pension benefts is as follows: 1.20%Life expectancy + / - 1 year Increase by 1.32% 1.10% Decrease by 1.36% 1.20% Less than Between Between Over 5 These sensitivities were calculated by recalculating the defned beneft obligations using the revised assumptions. a year 1 - 2 years 2 - 5 years years Total ThereThese weresensitivities no changes were incalculated the methods by recalculating in preparing the the de sensitivityfned bene analysisft obligations compared using to thethe priorrevised year. assumptions. There were no changes in the methods in preparing the sensitivity analysis compared to the prior year. 2018 $’000 $’000 $’000 $’000 $’000 Trinidad 4,750 3,034 13,825 40,810 62,419 Barbados 4,547 4,951 17,032 40,303 66,833

2017 Trinidad 3,486 2,723 11,509 39,436 57,154 Barbados 4,101 4,473 16,049 37,185 61,808

Page 88 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Page 88 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 89 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 89 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements statements are are expressed expressed in in Trinidad Trinidad and and Tobago Tobago dollars) dollars)

23 Borrowings 2018 2017 $’000 $’000

Cash and cash equivalents 68,040 78,030 Borrowings - repayable within one year (including overdraft) (33,103) (27,648) Borrowings - repayable after one year (57,750) (56,992) Net debt (22,813) (6,610)

Cash 68,040 78,030 Gross debt - fxed interest rates (90,853) (84,640) Net debt (22,813) (6,610) (a) Accounting policy policy Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any diference between the proceeds (net of transaction costs) and the redemption value is recognised in the consolidated statement of proft or loss over the period of the borrowings using the efective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

General and specifc borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specifc borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the consolidated statement of proft or loss in the period in which they are incurred.

(b) The bank overdrafts bear interest at the rate of 7.5%. The bank borrowings attract interest at varying rates of 5% - 7.5% (2017 – 4.5% - 7.85%) per annum and are being repaid by monthly installments of $3,559,272.

The bank overdrafts and borrowings are secured by: (i) A (i)frst demandA frst demandregistered registered debenture debenture giving the giving bank the a f bankrst fxed a f rstcharge fxed over charge the over fxed the and fxed foating and f assetsoating of assets One Caribbean Mediaof One Limited,Caribbean stamped Media Limited,to cover stamped $96,200,000. to cover A collateral $96,200,000. deed A of collateral mortgage deed over of twomortgage parcels over of landtwo situated at 35parcels - 37 Independence of land situated Square, at 35 - 37Port Independence of Spain and singularSquare, Portparcel of ofSpain land and situated singular at 4 parcel Charlotte of land Street, situated Port of Spain, stampedat 4 Charlotte collateral Street, to the Port debenture. of Spain, stamped collateral to the debenture.

(ii)(ii) AA ffrstrst demanddemand debenturedebenture givinggiving thethe bankbank a frst fxed charge over the fxed and foating assets of Green DotDot Limited,Limited, stampedstamped toto covercover $20,100,000.$20,100,000.

(iii)(iii) PropertyProperty allall riskrisk insuranceinsurance onon buildings,buildings, contentscontents andand stocksstocks forfor $423,415,226.$423,415,226.

(iv)(iv) JointJoint andand SeveralSeveral CorporateCorporate GuaranteeGuarantee inin thethe amountamount limitedlimited toto $50,000,000.$50,000,000.

(v)(v) HireHire purchasepurchase agreementagreement andand assignmentassignment ofof insuranceinsurance coveragecoverage overover thethe vehicles.vehicles.

(c) Debt covenants As at 31 December 2018, a subsidiary was in breach of its debt covenants, specifcally, the borrower’s total debt/ EBITDA ratio. This ratio is not to be less than 3.0 times. Actual as at 31 December 2018 was 1.07 times. As a result, the entire borrowings in relation to this subsidiary was classifed as current in the fnancial statements.

Page 90 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

24 Provisions for liabilities and other charges 2018 2017 $’000 $’000 At 1 January 24,593 26,136 New provisions 8,794 10,500 Utilised (7,473) (12,043) At 31 December 25,914 24,593

Employee Commissions benefts and fees Libel Other Total $’000 $’000 $’000 $’000 $’000 At 1 January 2018 14,011 4,632 5,123 827 24,593 New provisions/adjustments 1,268 5,131 459 1,935 8,794 Utilised (446) (4,479) (226) (2,322) (7,473) At 31 December 2018 14,834 5,284 5,356 440 25,914

At 1 January 2017 14,505 5,799 5,071 761 26,136 New provisions/adjustments 3,469 4,551 550 1,930 10,500 Utilised (3,963) (5,718) (498) (1,864) (12,043) At 31 December 2017 14,011 4,632 5,123 827 24,593

Accounting policy The Group recognises a liability and an expense for bonuses and proft-sharing based on a formula that takes into consideration the proft attributable to the Company’s shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outfow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outfow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outfow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period using a pre-tax rate that refects current market assessments of the time value of money and the risks specifc to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 91 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

25 Expenses by nature Proft before tax is arrived at after charging / (crediting): 2018 2017 $’000 $’000 Staf costs (Note 26) 145,875 151,564 Other expenses 66,048 80,671 Inventories recognised as expense 41,484 44,991 Agency commissions 17,728 21,838 Depreciation (Note 6 & 7) 20,625 19,964 Utilities 12,340 11,311 Professional fees 10,859 10,110 Property expenses 8,398 5,351 Programming usage 4,991 4,800 Advertising and promotion 3,579 4,435 Licence fees and royalties 3,133 3,063 Amortisation (Note 8) 3,032 - Impairment charge on investment property 2,860 2,413 Directors’ remuneration 741 798 Proft on disposal of property, plant and equipment (1) (9) Proft on disposal of available-for-sale fnancial assets - (130) 341,692 361,170

As disclosed in the consolidated statement of proft or loss:

Cost of providing services 265,307 282,047 Administrative expenses 72,806 74,688 Marketing expenses 3,579 4,435 341,692 361,170 26 Staf costs Salaries and wages 138,215 142,687 Pension cost (Note 22) 7,660 8,877 145,875 151,564

Number of employees 724 805

27 Impairment 2018 2017 $’000 $’000 Goodwill (5,900) (7,000) Investment property (2,860) - Investments in associate and joint venture (3,135) - (11,895) (7,000)

Page 92 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

28 Earnings per share The calculation of basic earnings per share is based on the Group’s proft attributable to shareholders (owners of the parent) of $19,513,199 (2017 - $47,755,890) and on the weighted average number of ordinary shares in issue of 63,136,500 (2017 – 62,850,707) exclusive of ESOP shares, during the year.

The calculation of the fully diluted earnings per share is based on the Group’s proft attributable to the shareholders (owners of the parent) as above and on the weighted average number of ordinary shares outstanding of 65,181,110 (2017 – 64,984,925) assuming conversion of all dilutive potential ordinary shares and share options granted.

The weighted average number of shares used in the calculation of earnings per share is as follows:

2018 2017 Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share 63,136,500 62,850,707 Share options 2,044,610 2,134,218 Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share 65,181,110 64,984,925

29 Net change in operating assets and liabilities 2018 2017 $’000 $’000 Decrease in inventories 5,330 13,309 (Increase) / decrease in trade receivables, sundry debtors and prepayments (4,604) 17,469 Decrease / (increase) in deferred programming 1,835 (2,021) (Decrease) / increase in trade payables (9,942) 435 Increase in sundry creditors and accruals and provisions for liabilities and other charges 6,195 234 (1,186) 29,426

30 Contingencies and commitments (a) Guarantees and bonds Guarantees and bonds are obtained to facilitate the immediate clearance of equipment pending the subsequent payment of the applicable duties. As at 31 December 2018 guarantees and bonds totaled $3,775,293 (2017 - $3,775,293).

(b) Operating lease commitments The future minimum lease payments under non-cancellable operating leases are as follows: 2018 2017 $’000 $’000

Not later than 1 year 1,391 1,323 Later than 1 year and not later than 5 years 3,370 3,245 Later than 5 years 1,011 1,207 5,772 5,775

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 93 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

31 Financial instruments by category At At At At amortised fair amortised fair cost value Total cost value Total 2018 2017 $’000 $’000 $’000 $’000 $’000 $’000 Assets as per consolidated balance sheet Financial assets 6,509 15,323 21,832 10,751 4,786 15,537 Loans and other receivables 14,620 14,620 18,155 18,155 Trade and other receivables excluding prepayments 100,528 - 100,528 131,924 - 131,924 Due from related parties 19,652 - 19,652 17,974 - 17,974 Term deposits 25,418 - 25,418 10,651 - 10,651 Cash and cash equivalents 68,040 - 68,040 78,030 - 78,030 234,767 15,323 250,090 267,485 4,786 272,271

At At At At amortised fair amortised fair cost value Total cost value Total 2018 2017 $’000 $’000 $’000 $’000 $’000 $’000

Liabilities as per consolidated balance sheet Borrowings 90,854 - 90,854 84,639 - 84,639 Trade and other payables 60,676 - 60,676 67,132 - 67,132 151,529 - 151,529 151,771 - 151,771

32 New investments (a) Investment in One Caribbean Flexipac Industries and Solutions Limited (Flexipac) One Caribbean Media Limited invested in a new company, Flexipac on 17 April 2018.

Flexipac will be involved in the manufacture and sale of foil packaging using fexographic printing technology.

The facility is currently being prepared and the equipment is being installed and tested with the plant being fully tested and operational in the third quarter of 2019.

The investment made by the Group of $10M represents a 55% shareholding in the new company with this shareholding increasing to 60% in April 2020.

The investment is as follows: 2018 $’000 %

One Caribbean Media Limited 10,000 55% Minority shareholders 8,200 45% 18,200 100%

Page 94 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

32 New investments (continued) (b) Acquisition in Green Dot Limited On 1 February 2017 One Caribbean Media Limited acquired 51% of the issued share capital of Green Dot Limited for the consideration of $76,500,000. Green Dot Limited is a provider of digital cable TV and broadband internet services.

Details of the purchase consideration, the net assets acquired and goodwill (provisional) are as follows.

Purchase consideration: 2017 $’000

Cash 45,904 Ordinary shares issued (1,093,186 shares @ $20.99) 22,946 Deferred payment to vendor 7,650 Total consideration 76,500

The assets and liabilities recognized as a result of the acquisition are as follows: 2017 $’000

Property, plant and equipment 10,955 Intangible assets (Note 8) 7,000 Deferred tax assets 3,656 Inventories 128 Trade receivables 4,497 Sundry debtors and prepayments 2,325 Due from related parties 14,260 Cash and cash equivalents 489 Borrowings (12,697) Trade payables (15,685) Sundry creditors and accruals (6,258) Total identifable net assets 8,670 Less: non-controlling interests (4,249) Add: goodwill 72,079 Total consideration 76,500

Goodwill arising on acquisition is not tax deductible.

Purchase consideration- cash outfow Cash consideration 53,554 Less: cash balances acquired (489) Net outfow of cash - investing activities 53,065

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 95 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies This Note provides a list of the signifcant accounting policies adopted in the preparation of these consolidated fnancial statements to the extent they have not already been disclosed in the other Notes above. These policies have been consistently applied to all the years presented, unless otherwise stated.

The fnancial statements are for the Group consisting of the Company and its subsidiaries.

33.1 Basis of preparation These consolidated fnancial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to Companies reporting under IFRS. The consolidated fnancial statements comply with IFRS as issued by the International Accounting Standards Board (IASB).

The consolidated fnancial statements have been prepared on a historical cost basis, except for the following: • the revaluation of land and buildings – measured at fair value, • fnancial assets – measured at fair value, and • defned beneft pension plans - plan assets measured at fair value.

The preparation of fnancial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement and complexity or where assumptions and estimates are signifcant to the consolidated fnancial statements are disclosed in Note 3.

Changes in accounting policies and disclosures (a) New and amended standards adopted by the Group: The Group has adopted the following new and amended standards and interpretations efective 1 January 2018: • IFRS 9 Financial Instruments • IFRS 15 Revenue from Contracts with Customers • Classifcation and Measurement of Share-based Payment Transactions – Amendments to IFRS 2 • Annual Improvements 2014-2016 cycle

This has resulted in changes in accounting policies and adjustments to the amounts previously recognized in the fnancial statements. As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative fgures. Any adjustments to the carrying amounts of fnancial assets and trade receivables at the date of transition were recognized in the opening retained earnings of the current period.

The adoption of IFRS 9 has resulted in changes in accounting policies for recognition, classifcation, measurement and impairment of fnancial assets and trade receivables.

Page 96 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies (continued) 33.1 Basis of preparation (continued) Changes in accounting policies and disclosures (continued) (a) New and amended standards adopted by the Group (continued) Classifcation and measurement On 1 January 2018 (the date of initial application of IFRS 9), the Group’s management has assessed which business models apply to the fnancial assets held by the Group and has classifed its f nancial instruments into the appropriate IFRS 9 categories. The main efects resulting from this reclassifcation are as follows:

The impact of these changes on the group’s equity is as follows: (i) The Group elected to present in OCI changes in the fair value of all its equity investments previously classifed as available-for-sale. These investments are held as long-term strategic investments that are not expected to be sold in the short to medium term. As a result, assets with a fair value prior to adoption of $4,785,650 were reclassifed from available-for-sale fnancial assets to fnancial assets at FVOCI and fair value gains of $10,641,630 was recognized in the FVOCI reserve on 1 January 2018.

(ii) Debt securities that would have previously been classifed as held-to maturity are now classifed at amortised cost. The Group intends to hold the assets to maturity to collect contractual cash fows and these cash fows consist solely of payments of principal and interest on the principal amount outstanding. An increase of $4,259,501 in the loss allowance for these assets was recognised in opening retained earnings for the period.

(iii) Loans and other receivables would have previously been included in trade receivables and non- current trade receivables. These are carried at amortised cost less impairment. An increase of $3,360,006 in the loss allowance was recognized in opening retained earnings for the period.

(iv) Trade receivables – there was no change to the classifcation of trade receivables from amortised cost. The method of assessing the impairment of trade receivables using the expected credit loss model was implemented and resulted in an increase in the loss allowance that was recognized in opening retained earnings of $13,468,891. On the date of initial application, 1 January 2018, the fnancial instruments of the group were as follows, with any reclassifcations noted:

Measurement category Carrying amount

Original New (IAS 39) (IFRS 9) Original New Diference

Non-current fnancial assets Financial Assets - FVOCI Available for sale FVOCI 4,786 15,427 10,642 Financial Assets - Amortised cost Amortised cost Amortised cost 10,751 6,492 4,260 Loans and other receivables Amortised cost Amortised cost 15,500 12,140 3,360

Current fnancial assets Trade receivables Amortised cost Amortised cost 115,096 101,628 13,468 Cash and cash equivalents Amortised cost Amortised cost 78,030 78,030 - Loans and other receivables Amortised cost Amortised cost 2,655 2,655 -

(b) New standards and interpretations not yet adopted by the Group: Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2018 reporting periods and have not been early adopted by the Group. The Group is yet to assess the impact of these new standards.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 97 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies (continued) 33.1 Basis of preparation (continued) Changes in accounting policies and disclosures (continued) (b) New standards and interpretations not yet adopted by the Group (continued)

Title of standard IFRS 16 Leases

Nature of change IFRS 16 was issued in January 2016. It will result in almost all leases being Nature of recognised on the balance sheet, as the distinction between operating and fnance leases is change removed. Under the new standard, an asset (the right to use the leased item) and a fnancial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases. The accounting for lessors will not signifcantly change. Impact The standard will afect primarily the accounting for the Group’s operating leases. As at the reporting date, the Group has non-cancellable operating lease commitments of $5,775,485, see note 30 (b). The Group estimates that the payments for short-term and low value leases which will be recognised on a straight-line basis as an expense in proft or loss to be immaterial. However, the Group has not yet assessed what other adjustments, if any, are necessary for example because of the change in the defnition of the lease term and the diferent treatment of variable lease payments and of extension and termination options. It is therefore not yet possible to estimate the amount of right-of-use assets and lease liabilities that will have to be recognised on adoption of the new standard and how this may afect the group’s proft or loss and classifcation of cash fows going forward. Mandatory The Group will apply the standard from its mandatory adoption date of 1 January 2019. The application date / Group intends to apply the simplifed transition approach and will not restate comparative Date of adoption amounts for the year prior to frst adoption. by Group

Page 98 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies (continued) 33.1 Basis of preparation (continued) Changes in accounting policies and disclosures (continued) (b) New standards and interpretations not yet adopted by the Group (continued)

Title of standard Key requirements

Annual The following improvements were fnalised in December 2017: Improvements - IFRS 3 - clarifed that obtaining control of a business that is a joint operation is a to IFRS business combination achieved in stages. Standards 2015- - IFRS 11 - clarifed that the party obtaining joint control of a business that is a joint 2017 Cycle operation should not remeasure its previously held interest in the joint operation. - IAS 12 - clarifed that the income tax consequences of dividends on fnancial instruments classifed as equity should be recognised according to where the past transactions or events that generated distributable profts were recognised. - IAS 23 - clarifed that if a specifc borrowing remains outstanding after the related qualifying asset is ready for its intended use or sale, it becomes part of general borrowings.

The interpretation explains how to recognise and measure deferred and current income Interpretation tax assets and liabilities where there is uncertainty over a tax treatment. In particular, it 23 Uncertainty discusses: over Income Tax - how to determine the appropriate unit of account, and that each uncertain tax Treatments treatment should be considered separately or together as a group, depending on which approach better predicts the resolution of the uncertainty - that the entity should assume a tax authority will examine the uncertain tax treatments and have full knowledge of all related information, ie that detection risk should be ignored - that the entity should refect the efect of the uncertainty in its income tax accounting when it is not probable that the tax authorities will accept the treatment - that the impact of the uncertainty should be measured using either the most likely amount or the expected value method, depending on which method better predicts the resolution of the uncertainty, and - that the judgements and estimates made must be reassessed whenever circumstances have changed or there is new information that afects the judgements. While there are no new disclosure requirements, entities are reminded of the general requirement to provide information about judgements and estimates made in preparing the fnancial statements.

Efective date 1 January 2019.

There are no other standards that are not yet efective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 99 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33.2 Foreign currency translation (a) Functional and presentation currency Items included in the fnancial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated fnancial statements are presented in Trinidad and Tobago dollars, which is the Group’s functional and presentation currency.

(b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of proft or loss, except when deferred in other comprehensive income as qualifying cash fow hedges and qualifying net investment hedges.

Foreign exchange losses and gains that relate to borrowings and cash and cash equivalents are presented in the consolidated statement of proft or loss within ‘Finance cost’ or ‘Interest income’. All other foreign exchange gains and losses are presented in the consolidated statement of proft or loss within ‘Administrative expenses’.

(c) Group companies The results and fnancial position of all the Group entities (none of which has the currency of a hyperinfationary economy) that have a functional currency diferent from the presentation currency are translated into the presentation currency as follows: (i) Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet. (ii) Income and expenses for each statement of proft or loss are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative efect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions). (iii) All resulting exchange diferences are recognised in other comprehensive income.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange diferences arising are recognised in other comprehensive income.

33.3 Investment properties – See Note 6.

33.4 Property, plant and equipment – See Note 7.

33.5 Intangible assets – See Note 8.

33.6 Impairment of assets – See Note 8.

33.7 Investments in associates and joint venture – See Note 9.

33.8 Financial assets – See Note 10.

33.9 Loans and receivables – See Note 11.

33.10 Trade receivables – See Note 12.

33.11 Deferred programming – See Note 14.

33.12 Taxation – See Note 15.

33.13 Inventories – See Note 16.

33.14 Cash and cash equivalents – See Note 17.

Page 100 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies (continued) 33.15 Share capital – See Note 18.

33.16 Retirement beneft obligation – See Note 22.

33.17 Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classifed as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are initially recognised at fair value and subsequently measured at amortised cost using the efective interest method. 33.18 Revenue recognition The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1 January 2018. There is no material impact to the consolidated income statement on the adoption of this standard.

Revenue from contracts with customers The Group derives revenue from the transfer of goods and services over time and at a point in time in the following segments and geographical locations:

Media ICT Non Media Trinidad Barbados Trinidad Trinidad Barbados Total $’000 $’000 $’000 $’000 $’000 $’000 2018 Timing of revenue recognition - At a point in time - - - 12,901 - 12,901 - Over time 205,523 125,118 40,603 5,036 4,588 380,868 Segment revenue 205,523 125,118 40,603 17,937 4,588 393,769

2017 Timing of revenue recognition - At a point in time - - - 12,862 - 12,862 - Over time 230,554 136,293 45,743 4,992 11,733 429,315 Segment revenue 230,554 136,293 45,743 17,854 11,733 442,177

There are no material assets and liabilities arising on revenue contracts with customers and no unsatisfed consulting contracts.

Accounting policies and signifcant judgements Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, credits, rebates and discounts and after eliminating sales within the Group.

The Group recognises revenue when the amount of revenue can be measured reliably, it is probable that future economic benefts will fow to the entity and specifc criteria have been met for each of the Group’s activities as described below. The amount of revenue is not considered to be reliably measured until all contingencies relating to the sale have been resolved.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 101 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies (continued) 33.18 Revenue recognition (continued)

Provision of services - Media The Group sells advertising services utilising television, print and radio media to advertising agents, government, corporate entities and individuals. For sales of these services, revenue is recognised in the accounting period in which the services are rendered, by reference to fulflment of the required advertisement at the rates agreed with the customer. The contract price is allocated over all performance obligations including bonus spots.

Provision of services – Information, Communication and Technology The Group sells technology related and broadband services to corporate and individual customers. Sales are recognized in the accounting period to which the services are rendered by reference to the completion of the specifc transactions assessed on the basis of the actual service provided.

Revenue from the rental of equipment is accounted for as lease income.

Revenue earned from the installation of equipment is deferred over the estimated time that the customer will make use of the service.

Sale of goods - wholesale distribution The Group sells a range of large electrical household appliances. Sales of goods are recognised when the Group has delivered products to the customer, the risks and rewards of ownership have been transferred by delivery and the customer has accepted the goods according to the terms of sale. Delivery occurs when the product is installed for the customer and there is acceptance of the product in accordance with the sales contract.

Sale of goods - retail contract services The Group sells, assembles and installs photovoltaic systems and renewable energy products; carries out energy audits and implements energy efciency strategies. Sales are recognized when products are delivered to the customer and there is no unfulflled obligation that could afect the customer’s acceptance of the product. Contracts that span more than one fnancial period are accounted for by estimating the stage of completion.

A 10% retention fee is recognized upon certifcation from the authorities.

33.19 Operating leases Leases in which a signifcant portion of the risks and benefts of ownership are retained by the lessor are classifed as operating leases. Payments made under operating leases are charged to the consolidated statement of proft or loss as incurred on a straight line basis over the period of the lease. The Group leases certain property, plant and equipment.

Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classifed as fnance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The Group does not have any fnance leases.

33.20 Dividend income Dividend income is recognised when the right to receive payment is established.

33.21 Interest income IAS 39 2017 policy Interest income is recognised using the efective interest method. When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash fows discounted at the original efective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognised using the original efective interest rate.

IFRS 9 2018 policy Interest income on fnancial assets at amortised cost and fnancial assets at FVOCI (2017 – available-for-sale securities, held-to-maturity investments and loans and receivables) calculated using the efective interest method is recognised in the statement of proft or loss as part of interest income.

Page 102 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018 Notes to the consolidated fnancial statements (These fnancial statements are expressed in Trinidad and Tobago dollars)

33 Summary of signifcant accounting policies (continued)

Total interest income on fnancial assets that are measured at amortised cost for the year was $2,465,459 (2017 $2,984,572).

33.22 Rounding of amounts All amounts disclosed in the fnancial statements and notes have been rounded of to the nearest thousand currency units unless otherwise stated.

34 Subsequent events There were no events after the reporting period which were material to the fnancial statements and should have resulted in adjustments to the fnancial statements or disclosures when the fnancial statements were authorised for issue.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 103 Notice of Meeting To All Shareholders:

Notice is hereby given that the 51st Annual Meeting of One Caribbean Media Limited will be held at Express House, 35-37 Independence Square, Port-of-Spain, on Thursday 13th June 2019 at 10.00 a.m. Agenda

1. To adopt the Auditors’ Report, Financial Statements and Directors’ Report for the year ended 31st December 2018. 2. To elect Directors. (See notes 1,2,3 and 4) 3. To re-appoint Auditors for the ensuing year and to authorize the Directors to fx their remuneration. (See note 5) 4. To discuss any other business of the Company which may properly be considered at the Annual Meeting.

By Order of the Board

……………………………… Karlene Ng Tang Company Secretary 22nd May 2019

One Caribbean Media Limited, Express House, 35-37 Independence Square, Port-of-Spain

Notes: 1. In accordance with the By-Laws, Mrs. Dawn Thomas retires by rotation and being eligible ofers herself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 2. In accordance with the By-Laws, Mr. Anthony Shaw retires by rotation and being eligible ofers himself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 3. In accordance with the By-Laws, Mr. Douglas Wilson retires by rotation and being eligible ofers himself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 4. In accordance with the By-Laws, Dr. Grenville Phillips retires by rotation and being over seventy fve (75) years of age ofers himself for re-election for a term not later than the close of the frst Annual Meeting of the shareholders following this re-election. 5. The Auditors, PricewaterhouseCoopers, retire by rotation and being eligible ofer themselves for re-election. 6. At no time during the current fnancial year has any Director or Ofcer been a party to a material contract with the Company or was materially interested in a contract or in a party to a material contract which was signifcant in relation to the Company’s business. 7. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his or her stead. Such Proxy need not also be a member of the Company.

A Proxy Form is provided.

Page 104 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 Proxy Form Republic of Trinidad and Tobago The Companies Act, CH. 81:01 (Section 143 (1)

1. Name of Company: Company No: O -701 (C) One Caribbean Media Limited

2. The 51st Annual Meeting of One Caribbean Media Limited to be held at Express House, 35-37 Independence Square, Port-of- Spain, on Thursday 13th June 2019 commencing at 10.00 a.m.

3. I/We______(Block Capitals Please) of ______

shareholder/s in the above Company, appoint the Chairman of the Meeting or failing him,

______

of ______

to be my/our proxy to vote for me/us on my/our behalf at the above meeting and any adjournment thereof, in the same manner, to the same extent and with the same powers as if I/we was/were present at the said meeting as such adjournment or adjournments thereof and in respect of the resolutions listed below to vote in accordance with my/our instructions.

Signature/s ______

______

Dated this ______day of ______2019.

Please indicate with an “X” in the spaces below and overleaf your instructions on how you wish your votes to be cast. Unless otherwise instructed, the proxy will exercise his/her discretion as to how he/she votes or whether he/she abstains from voting.

Please consider Notes 1 to 3 below and overleaf for assistance to complete and deposit this Proxy Form.

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 105 Proxy Form (continued)

Resolutions For Against 1. To adopt the Audited Financial Statements of the Company for the fnancial year ended 31st December 2018 2. In accordance with the By-Laws, Mrs. Dawn Thomas retires by rotation and being eligible offers herself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 3. In accordance with the By-Laws, Mr. Anthony Shaw retires by rotation and being eligible offers himself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 4 In accordance with the By-Laws, Mr. Douglas Wilson retires by rotation and being eligible offers himself for re-election for a term not later than the close of the third Annual Meeting of the shareholders following this re-election. 5. In accordance with the By-Laws, Dr. Grenville Phillips retires by rotation and being over seventy fve (75) years of age offers himself for re-election for a term not later than the close of the frst Annual Meeting of the shareholders following this re-election. 6. The Auditors, PricewaterhouseCoopers, retire by rotation and being eligible offer themselves for re-election.

Notes:

1. A shareholder may appoint a proxy of his/her own choice. If such an appointment is made, delete the words “the Chairman of the Meeting’ from the Proxy Form and insert the name and address of the person- appointed proxy in the space provided and initial the alteration.

2. If the appointer is a corporation, the Proxy Form must be under its common seal or under the hand of an offcer of the corporation or attorney duly authorized in that behalf.

3. A shareholder who is a body corporate may, in lieu of appointing a proxy, authorize an individual by resolution of its directors or governing body to represent it at this Annual Meeting.

4. In the case of joint shareholders, the names of all joint shareholders must be stated on the Proxy Form and all joint shareholders must sign the Proxy Form.

5. If the Proxy Form is returned without any indication as to how the person-appointed proxy shall vote, the proxy will exercise his/her discretion as to how he/she votes or whether he/she abstains from voting.

6. To be valid, this Proxy Form must be completed and deposited with the Secretary of the Company at the Registered Offce of the Company at the address below at least 48 hours before the time appointed for the Annual Meeting.

Return to: The Company Secretary

Page 106 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 107 Page 108 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ERRATA SHEET - Correction to Note 5 on Pages 59 to 62 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018

5 Segment information (continued) The segment information provided for the reportable business segments is as follows:

31 December 2018 31 December 2017 Media ICT Other Group Media ICT Other Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue 330,641 40,603 22,525 393,769 366,847 45,743 29,587 442,177

Operating profit 42,293 11,494 (1,710) 52,077 63,742 15,442 1,823 81,007 Net impairment losses on financial assets (3,378) (823) (1,191) (5,392) (1,594) - (228) (1,822) Impairment losses on other assets (3,135) - (8,760) (11,895) - - (7,000) (7,000) Dividend income 2,881 - - 2,881 1,191 - - 1,191 Interest income 2,542 - 12 2,554 3,093 - - 3,093 Finance costs (4,711) (1,421) (218) (6,350) (3,502) (1,506) (225) (5,233) Share of profit of ssociatesa and joint venture - 4,280 - 4,280 - 1,233 - 1,233 Profit before tax 36,492 13,530 (11,867) 38,155 62,930 15,169 (5,630) 72,469 Taxation (14,347) (2,589) (981) (17,917) (15,602) (3,867) (554) (20,023) Profit for the year 22,145 10,941 (12,848) 20,238 47,328 11,302 (6,184) 52,446

Group profit / (loss) attributable to: - Non-controlling interests (1,765) 3,123 (633) 725 79 4,386 225 4,690 - Owners of the parent 23,910 7,818 (12,215) 19,513 47,249 6,916 (6,409) 47,756 22,145 10,941 (12,848) 20,238 47,328 11,302 (6,184) 52,446

31 December 2018 31 December 2017 Media ICT Other Group Media ICT Other Group $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 16,909 2,415 1,301 20,625 16,179 1,722 2,063 19,964

Amortisation 1,907 1,061 64 3,032 1,951 398 64 2,413

Capital expenditure 31,097 3,531 367 34,995 24,760 3,679 398 28,837

Assets 700,308 142,781 111,242 954,331 719,752 143,089 109,342 972,183

Liabilities 205,501 24,094 8,756 238,351 198,300 31,153 7,399 236,852

Page 1 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ERRATA SHEET - Correction to Note 5 on Pages 59 to 62 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018

5 Segment information (continued) The Trinidad operations are segmented into Media, ICT and Other as follows:

31 December 2018 31 December 2017 Media ICT * Other Trinidad Media ICT Other Trinidad $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue 205,523 40,603 17,937 264,063 230,554 45,743 17,854 294,151

Operating profit 35,114 11,494 1,497 48,105 47,680 15,442 1,225 60,725 Net impairment losses on financial assets (2,858) (823) (715) (4,396) (1,583) - (228) (1,811) Impairment losses on other assets (3,135) - (8,760) (11,895) - - (7,000) (7,000) Dividend income 22 - - 22 81 - - 81 Interest income 77 - 12 89 108 - 0 108 Finance costs (4,292) (1,421) (88) (5,801) (3,183) (1,506) (87) (4,776) Share of profit ofassociates and joint venture - 4,280 - 4,280 - 1,233 - 1,233 Profit before tax 24,928 13,530 (8,054) 30,404 43,103 15,169 (6,090) 52,182 Taxation (14,804) (2,589) (981) (18,374) (10,588) (3,867) (554) (15,009) Profit for the year 10,124 10,941 (9,035) 12,030 32,515 11,302 (6,644) 37,173

Group profit / (loss) attributable to: - Non-controlling interests 103 3,123 (633) 2,593 79 4,386 - 4,465 - Owners of the parent 10,021 7,818 (8,402) 9,437 32,436 6,916 (6,644) 32,708 10,124 10,941 (9,035) 12,030 32,515 11,302 (6,644) 37,173

31 December 2018 31 December 2017 Media ICT Other Trinidad Media ICT Other Trinidad $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 10,088 2,415 1,200 13,703 9,478 1,722 1,954 13,154

Amortisation 1,602 1,061 - 2,663 1,602 398 - 2,000

Capital expenditure 28,634 3,531 282 32,447 11,960 3,679 398 16,037

Assets 452,709 142,781 103,277 698,767 469,933 143,089 98,079 711,101

Liabilities 189,926 24,094 1,756 215,776 177,721 31,153 913 209,787

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 2 ERRATA SHEET - Correction to Note 5 on Pages 59 to 62 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018

5 Segment information (continued) The Barbados operations are segmented into Media and Other as follows:

31 December 2018 31 December 2017 Media Other Barbados Media Other Barbados $’000 $’000 $’000 $’000 $’000 $’000

Revenue 125,118 4,588 129,706 136,293 11,733 148,026

Operating profit 7,179 (3,207) 3,972 16,062 598 16,660 Net impairment losses on financial assets (520) (476) (996) (11) - (11) Dividend income 2,859 - 2,859 1,110 - 1,110 Interest income 2,465 - 2,465 2,985 - 2,985 Finance costs (419) (130) (549) (319) (138) (457) Profit before tax 11,564 (3,813) 7,751 19,827 460 20,287 Taxation 457 - 457 (5,014) - (5,014) Profit for the year 12,021 (3,813) 8,208 14,813 460 15,273

Group profit / (loss) attributable to: - Non-controlling interests (1,868) - (1,868) - 225 225 - Owners of the parent 13,889 (3,813) 10,076 14,813 235 15,048 12,021 (3,813) 8,208 14,813 460 15,273

31 December 2018 31 December 2017 Media Other Barbados Media Other Barbados $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 6,821 101 6,922 6,701 109 6,810

Amortisation 305 64 369 349 64 413

Capital expenditure 2,463 85 2,548 12,800 - 12,800

Assets 247,599 7,965 255,564 249,819 11,263 261,082

Liabilities 15,575 7,000 22,575 20,579 6,486 27,065

Page 3 |ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 ERRATA SHEET - Correction to Note 5 on Pages 59 to 62 ONE CARIBBEAN MEDIA LIMITED Year ended 31 December 2018

5. Segment information (continued) The segment information provided for the reportable geographic segments is as follows:

31 December 2018 31 December 2017 Trinidad Barbados Group Trinidad Barbados Group $’000 $’000 $’000 $’000 $’000 $’000

Revenue 264,063 129,706 393,769 294,151 148,026 442,177

Operating profit 48,105 3,972 52,077 64,347 16,660 81,007 Net impairment losses on financial assets (4,396) (996) (5,392) (1,811) (11) (1,822) Impairment losses on other assets (11,895) - (11,895) (7,000) - (7,000) Dividend income 22 2,859 2,881 81 1,110 1,191 Interest income 89 2,465 2,554 108 2,985 3,093 Finance costs (5,801) (549) (6,350) (4,776) (457) (5,233) Share of profit of associates and joint venture 4,280 - 4,280 1,233 - 1,233 Profit before tax 30,404 7,751 38,155 52,182 20,287 72,469 Taxation (18,374) 457 (17,917) (15,009) (5,014) (20,023) Profit for the year 12,030 8,208 20,238 37,173 15,273 52,446

Group profit / (loss) attributable to: - Non-controlling interests 2,593 (1,868) 725 4,465 225 4,690 - Owners of the parent 9,437 10,076 19,513 32,708 15,048 47,756 12,030 8,208 20,238 37,173 15,273 52,446

31 December 2018 31 December 2017 Trinidad Barbados Group Trinidad Barbados Group $’000 $’000 $’000 $’000 $’000 $’000

Depreciation 13,703 6,922 20,625 13,154 6,810 19,964

Amortisation 2,663 369 3,032 2,000 413 2,413

Capital expenditure 32,447 2,548 34,995 16,037 12,800 28,837

Assets 698,767 255,564 954,331 711,101 261,082 972,183

Liabilities 215,776 22,575 238,351 209,787 27,065 236,852

ONE CARIBBEAN MEDIA LIMITED | ANNUAL REPORT 2018 | Page 4