Consolidated Financial Statements As of December 31, 2018
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Consolidated Financial Statements as of December 31, 2018 We hereby present to you the annual financial report for the fiscal year ended on December 31, 2018, prepared in accordance with the provisions of Articles L. 451-1-2 III of the French Monetary and Financial Code and 222- 4 et seq. of the General Regulations of the French Financial Markets Regulator (AMF). This report shall be shared in accordance with the provisions of Article 221-3 of the General Regulations of the AMF. In particular, it shall be available on the website of our company, www.mediawan.com. Contents 1. Consolidated Income Statement ................................................................................................... 4 2. Consolidated Statement of Comprehensive Income...................................................................... 5 3. Consolidated Financial Position .................................................................................................... 6 4. Table of Consolidated Cash Flow ................................................................................................... 7 5. Consolidated Variation of Equity................................................................................................... 8 6. Mediawan Group .......................................................................................................................... 9 6.1. Activities of the Group ........................................................................................................................ 9 6.2. Significant Events of the Period .......................................................................................................... 9 6.3. Scope of consolidation ...................................................................................................................... 12 7. Accounting rules and methods .....................................................................................................13 7.1. Approval of the financial statements ............................................................................................... 13 7.2. Basis for preparation and presentation of the consolidated financial statements......................... 13 7.3. Application of new standards and interpretations .......................................................................... 14 7.4. Initial application of the IFRS 15 standard ........................................................................................ 15 7.5. Initial application of the IFRS 9 standard .......................................................................................... 17 7.6. Expected impacts of application of the IFRS 16 standard ................................................................ 17 7.7. Summary of the significant accounting principles applied by Mediawan ....................................... 19 8. Notes on the consolidated income statement ..............................................................................30 8.1. Business segment information .......................................................................................................... 30 8.2. Revenues............................................................................................................................................ 32 8.3. Other operating income .................................................................................................................... 32 8.4. Purchases and other external expenses ........................................................................................... 32 8.5. Personnel costs .................................................................................................................................. 32 8.6. Other operating expenses ................................................................................................................. 33 8.7. Details of net amortization, depreciation, and provisions related to business, amortization excluding that for audiovisual distribution rights, and impairment of assets related to mergers and acquisitions ................................................................................................................................. 33 8.8. Other operating income and expenses ............................................................................................. 34 8.9. Financial income ................................................................................................................................ 35 8.10. Taxes .................................................................................................................................................. 35 8.11. Effects of income and expenses recorded among other items of comprehensive income ............ 36 8.12. Earnings per share ............................................................................................................................. 36 8.13. Reconciliation of operating income with EBITDA ............................................................................. 37 9. Notes on the status of the consolidated financial position ...........................................................37 9.1. Intangible fixed assets ....................................................................................................................... 37 9.2. Goodwill ............................................................................................................................................. 38 9.3. Tangible fixed assets ......................................................................................................................... 40 9.4. Financial assets .................................................................................................................................. 41 9.5. Customer receivables ........................................................................................................................ 42 9.6. Other sums owed .............................................................................................................................. 42 9.7. Deferred taxes ................................................................................................................................... 42 9.8. Equity ................................................................................................................................................. 43 Annual Financial Report – Mediawan – December 31, 2018 – 2 9.9. Current and non-current provisions ................................................................................................. 46 9.10. Net financial debt .............................................................................................................................. 48 9.11. Supplier payables and other current liabilities ................................................................................ 50 9.12. Other financial liabilities ................................................................................................................... 51 10. Notes on the cash flow statement ...............................................................................................51 11. Other information ........................................................................................................................52 11.1. Average workforce broken down by category ................................................................................. 52 11.2. Remuneration of corporate officers ................................................................................................. 53 11.3. Transactions with the main shareholders or with companies that share Mediawan leaders ........ 56 11.4. Off-balance sheet commitments made ............................................................................................ 56 11.5. Off-balance sheet commitments received........................................................................................ 58 11.6. Risks ................................................................................................................................................... 58 11.7. Financial instruments by category and classification level .............................................................. 61 11.8. Post-closing events ............................................................................................................................ 61 11.9. Fees of the Statutory Auditors .......................................................................................................... 62 12. Report of the Statutory Auditors on the consolidated financial statements .................................63 Annual Financial Report – Mediawan – December 31, 2018 – 3 1. Consolidated Income Statement In € millions Notes 2018 2017 Revenues 8.2 258,6 115,7 Other products 8.3 125,5 22,2 Purchases and external expenses 8.4 (96,2) (34,6) Personnel expenses 8.5 (90,1) (33,9) Other expenses 8.6 (38,3) (13,4) Depreciation and provisions, net 8.7 (110,4) (29,8) Other depreciation (excl. audiovisual rights) 8.7 (5,2) (2,8) Other operating income and expenses 8.8 (10,2) (4,7) Amortization of assets recognized through bus. combinations 8.7 (30,1) (21,7) EBIT 3,6 (3,1) Cost of net financial debt (8,4) (3,8) Other financial income and expenses 5,3 0,0 Net financial income (expense) 8.9 (3,1) (3,7) Pre-tax income / (loss) 0,5 (6,8) Current and deferred tax (expense) / benefit 8.10 5,5 0,2 Profit (loss) after tax 5,9 (6,6) Income from equity affiliates (0,0) - Income