FINANCIAL RESULTS H1 2018 27 September 2018 TABLE OF CONTENT INTRODUCTION BUSINESS REVIEW p.3 p.8 FINANCIAL OVERVIEW H1 2018 1 2 H1 2018 ACCOUNTS 2018 OUTLOOK p.14 p.21 3 4 INTRODUCTION H1 2018 HIGHLIGHTS FINALIZATION OF SEVERAL TRANSFORMING TRANSACTIONS TO ✓ FUEL CONTENT STRATEGY REORGANIZATION OF THE GROUP , INTEGRATING THE ACQUIRED ✓ ACTIVITIES IN 4 BUSINESS UNITS SOLID BUSINESS PERFORMANCE IN ALL SEGMENTS SUP P ORTE D ✓ BY STRONG PRODUCTION LINE - UP FIRST HALF 2018 DELIVERED STRONG FINANCIAL RESULTS BOT H IN ✓ REVENUES AND PROFIT ✓ CONFIRMED PERSPECTIVES FOR FY18 AND MID - TERM 4 | FINANCIAL RESULTS H1 2018 A NEWLY INTEGRATED ORGANIZATION Offices & studios in 450 permanent employees Leading independent 9 countries in Europe, North platform in Europe Global organization with America and Asia centralized corporate functions 1st producer of fiction 17 channels, o/w 2 are in in France the Top 10 Pay-TV channels 1st producer of 1st content distributor animation in Europe in France 5 | FINANCIAL RESULTS H1 2018 STRONG FINANCIAL PERFORMANCE IN H1 2018 ➢ Reported financials (excluding ON Entertainment) : ➢ R e v e nu e s o f € 1 2 5 . 3 m ➢ EBITDA [ 1 ] o f € 3 0 . 0m ➢ Re v e nu e g r o w t h o f + 4 4 % YoY (with different consolidation perimeter) ➢ Re p o r te d net income group share o f € 1 1 . 3 m , corresponding to € 1 8 . 2 m excluding impact of assets recognized through business combinations ➢ Consolidated net debt [ 2 ] o f € 1 1 2 .6 m [1] After amortization of audiovisual rights (other than recognized through business combinations) 6 | FINANCIAL RESULTS H1 2018 [2] Excluding production credits STRATEGY AND OUTLOOK CAPITALIZE ON THE BOOMING DEMAND FOR CONTENT TO ACCELERATE PRODUCTION AND CREATE NEW IP STRENGTHEN AND GROW OUR LIBRARY OF RIGHTS ORGANIZE MEDIAWAN AS AN INTEGRATED MEDIA GROUP WITH CENTRALIZED MANAGEMENT CONSOLIDATE LEADERSHIP WITH SELECTED EUROPEAN ACQUISITIONS M A IN TA IN STRONG ORGANIC GROWTH PROFILE FOR THE PRO FORMA PERIMETER [1] 7 | FINANCIAL RESULTS H1 2018 [1] Like-for-like growth Including contribution of Storia, Makever, ON Entertainment and MVP BUSINESS REVIEW MEDIAWAN ORIGINALS: Business update and trends o # 1 producer of prime - o Revenues of € 4 7 . 2 m ( e x c l . o More than 60 hours time fiction in France i n t r a - g r o u p ) expected in H2 o Collection of 13 o +127% growth Y o Y , o Exploitation of recurring production companies primarily due to the s e r i e s : 7 currently in with independent labels integration of CC&C, portfolio, ongoing Makever and Storia discussions to produce o Strong portfolio of IPs second season for incl. multiple recurring o Approximately 40 hours additional 4 - 5 s e r i e s s e r i e s of programs delivered over 6 months o Develop and create new o Production for both h i g h - quality franchises local broadcasters and global platforms o Accelerate international repositioning w i t h n e w o Exciting line - u p o f n e w ambitious projects projects in development f o r 2 0 1 9 - 2 0 2 0 9 | FINANCIAL RESULTS H1 2018 MEDIAWAN ORIGINALS: 2018 production line-up o Alice Nevers (S16) o Apocalypse ( p a i x i m p o s s i b l e ) o Black Spot (S2) o Apocalypse ( g u e r r e d e s m o n d e s ) o Beneath the skin ( s o u s l a p e a u ) o Captain Sharif (S6) o Crimson wedding ( n o c e s r o u g e s ) o Call my agent (dix pour cent) ( S 3 ) o Just a Gigolo o Deux gouttes d ’ e a u o Falling for love ( j e s a i s t o m b e r ) o Histoire de l’aviation o J e n e s u i s pas un homme facile o H y d r a v i o n , la renaissance o H u g u e t t e o Research Unit (S12) o L e s f a n t ô m e s d u H a v r e o L e Meilleur reste à venir o The crimson rivers ( r i v i è r e s p o u r p r e s ) o P a p a ou M a m a n o L e s V o e u x o T r a q u é s o Twenty Five ( v i n g t - c i n q ) o M e u t r e à Bride les Bains o War on beasts ( a u x a n i m a u x l a g u e r r e ) o M e u t r e d a n s l e M o r v a n o P a u v r e G e o r g e s o P l a y o Red Bracelets (S2) o Research Unit (S13) o S y s t è m e D o U n f a i t h f u l o U n h o m m e a b î m é 10 | FINANCIAL RESULTS H1 2018 MEDIAWAN ANIMATION: Business update and trends o # 1 producer of animated o Revenues of € 1 5 . 6 m [ 1 ] o L i n e - up for significant content in Europe o Not consolidated as growth trajectory o n b o t h o Expertise in both TV part of Mediawan H1 s e g m e n t s series and movies 2018 reported accounts o Leverage on the Miraculous o Proven ability to d e v e l o p (entered the perimeter p h e n o m e n o n , with seasons IPs into 360 successful in June 2018) 3 - 5 in production as well as b r a n d s o Main deliveries include other projects incl. live Miraculous (18 eps), and action movie, and benefits Z a k s t o r m ( 1 3 e p s ) from L&M starting to kick - in o In line with the delivery o New ambitious series s u c h plan for 2018 as Power Players o Release of the first Playmobil movie in 2019, w i t h fully loaded pipeline o f m o v i e s to be delivered in the coming years [1] Excludes €2.3m contribution from Chapter 2 ; 11 | FINANCIAL RESULTS H1 2018 includes contribution from film production services. MEDIAWAN RIGHTS: Business update and trends o Large library with o Revenues of € 2 3 . 2 m ( e x c l . o Natural business a p p r o x . 13,000 hours of i n t r a - g r o u p ) acceleration thanks to the c o n t e n t - Includes renewals of increased contribution from o Large (and growing) classic series to in- house productions portion of internally French broadcasters o Development of expertise produced content o +97% growth Y o Y , for international formats o Diversified client base : primarily due to seasonal and animation programs FTA broadcasters, cable effect and intra - y e a r networks, SVOD s a l e s m i x o Increased weight of OTT platforms,… and digital players in the o C o n t i n u e d investments in customer mix external rights (on top of in- house productions ) a n d o Additional investment i n i n c r e a s e d l i b r a r y v a l u e external content to further fuel library according to market opportunities 12 | FINANCIAL RESULTS H1 2018 MEDIAWAN THEMATICS: Business update and trends o Strong position on o Revenues of € 5 4 . 4 m ( e x c l . o Service upgrades and thematic channels in i n t r a - g r o u p ) developments to explore France and French - o +0.5% growth Y o Y n e w opportunities o r n e w speaking territories distribution routes with o Renewal of c a r r i a g e OTT platforms o L a r g e and unique c o n t r a c t s with top clients portfolio of 17 c h a n n e l s o New channels and o Upside potential from new distributed by a l l project developments : eg French TV operators rebranding projects to strengthen channels offer e - s p o r t platform currently (and largely present in being discussed other French - s p e a k i n g and positioning territories) o Increasing presence in t h e ad m a r k e t t h r o u g h generalists c h a n n e l s (France and Belgium) and thematic niches 13 | FINANCIAL RESULTS H1 2018 H1 2018 CONSOLIDATED ACCOUNTS KEY ACCOUNTING CONSIDERATIONS ➢ 3 new acquisitions in the consolidation perimeter ➢ Storia Television , incorporated on January 2 nd for the purpose of acquiring certain TV production assets from E u r o p a c o r p , consolidated since January 1 st ➢ M a k e v e r, acquired on March 15 th, consolidated since January 1 st ➢ ON Entertainment , acquired on June 7 th, consolidated as of June 30 th ➢ Change in accounting principles and methodology (IFRS 15 in particular) ➢ L i m i t e d impact on EBITDA and net income ➢ Unchanged definition of EBITDA (after amortization of all audiovisual r i g ht s - other than recognized through business combinations) ➢ Significant goodwill recognized from the acquisitions ➢ PPA analysis still pending for Makever, Storia and ON Entertainment ➢ H1 2017 accounts are restated for the impact of the PPA analysis conducted during H2 as for FY 2017 15 | FINANCIAL RESULTS H1 2018 TOTAL REVENUES OF €125M Solid business performance on all a r e a s I n € m H 1 2 0 1 8 H 1 2 0 1 7 C h a n g e R e p o r t e d [1] R e s t a t e d [2] (%) MDW Originals 4 7 .