Grupo Clarín S A : Financial Statements - 6M21

GCLA: Ps.72.0/ share (BYMA)

GCLA: USD 0.3/ GDS (LSE)

Quarterly Report Total Shares: 106,776,004

GDS (LSE) = 2 Shares (BYMA)

Closing Price: August 11, 2021

Grupo Clarín Announces First Half and Second

Quarter 2021 Results

Buenos Aires, Argentina, August 11, 2021 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its First Half and Second Quarter 2021 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards (*) ("IFRS") as of June 30, 2021 and are stated in Argentine Pesos ("Ps"), unless otherwise indicated.

1. The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the financial statements.

Highlights (1H21 vs. 1H20):

• Total Revenues reached Ps. 15,519.4 million, an increase of 1.0% compared to 1H20, mainly due to higher advertising revenues in the Broadcasting and Programming segment (partially offset by lower programming revenues) and lower circulation and printing revenues in the Printing and Publishing segment.
• Adjusted EBITDA (1) reached Ps. 2,605.9 million, an increase of 257.9% compared to 728.2 for 1H20, mainly driven by higher advertising revenues in Broadcasting and Programming and costs reductions in real terms greater than the decrease in revenues in the Printing and Publishing segment.
• Grupo Clarín's Adjusted EBITDA Margin(2) was 16.8% in 1H21, compared to 4.7% in 1H20.
• Net Income for the period totaled Ps. 928.5 million, a change of -263.7% compared to a loss of Ps. 567.1 million reported in 1H20. Net Income for the period attributable to Equity Shareholders amounted Ps 914.4 million in 1H21 from a loss Ps. 345.6 million in 1H20, a change of -364.6%.

FINANCIAL HIGHLIGHTS

(In millions of Ps.)	1H21	1H20	% Ch.	2Q21	1Q21	2Q20	QoQ	YoY
Total Revenues	15,519.4	15,369.9	1.0%	7,879.3	7,640.1	7,272.6	3.1%	8.3%
Adjusted EBITDA (1)	2,605.9	728.2	257.9%	1,159.1	1,446.8	934.2	(19.9%)	24.1%
Adjusted EBITDA Margin (2)	16.8%	4.7%	254.4%	14.7%	18.9%	12.8%	(22.3%)	14.5%
Profit/(Loss) for the period	928.5	(567.1)	(263.7%)	185.6	742.9	426.4	(75.0%)	(56.5%)
Attributable to:
Equity Shareholders	914.4	(345.6)	(364.6%)	158.9	755.5	492.1	(79.0%)	(67.7%)
Non-Controlling Interests	14.1	(221.5)	(106.4%)	26.7	(12.6)	(65.7)	(312.2%)	(140.6%)

1. We define Adjusted EBITDA as Total Revenues minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies based on operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.
2. We define Adjusted EBITDA Margin as Adjusted EBITDA over Total Revenues.

Investor Relations Contacts
In Buenos Aires:	In London:	In New York:
Samantha Olivieri	Alex Money	Camilla Ferreira and Marcella Ewerton Dragone
Grupo Clarín S.A.	Jasford IR	Fig Corporate Communications
Tel: [phone]	Tel: [phone]	Tel: [phone]
Email: [e-mail]	E-mail:[e-mail]	E-mail:[e-mail]

Investor Relations http://www.grupoclarin.com/ir

OPERATING RESULTS

Total Revenues reached Ps. 15,519.4 million, an increase of 1.0% from Ps. 15,369.9 million in 1H20. Advertising revenues increased 26.2% and represented around 44.4% of the Total Revenues of the Company. Circulation revenues decreased 3.2% and represented 28.4% of the Total.

Following is a breakdown of Total Revenues by business segment:

REVENUES	1H21	1H20	YoY	2Q21	1Q21	2Q20	QoQ	YoY
(In millions of Ps.)
Printing and Publishing	6,888.9	7,912.1	(12.9%)	3,345.4	3,543.6	3,654.9	(5.6%)	(8.5%)
Broadcasting and	8,152.0	7,008.9	16.3%	4,291.5	3,860.4	3,392.1	11.2%	26.5%
Programming
Others	1,033.4	1,012.6	2.1%	535.1	498.3	469.7	7.4%	13.9%

Subtotal	16,074.3	15,933.6	0.9%	8,171.9	7,902.3	7,516.8	3.4%	8.7%
Eliminations	(554.8)	(563.7)	(1.6%)	(292.6)	(262.2)	(244.2)	11.6%	19.8%
Total	15,519.4	15,369.9	1.0%	7,879.3	7,640.1	7,272.6	3.1%	8.3%

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 8,545.1 million, a decrease of 13.1% from Ps. 9,829.7 million reported in 1H20 due to lower costs across all business segments, mainly related to the un-consolidationof the postal business and lower printing costs in the Printing and Publishing segment, lower programing costs in Broadcasting and Programing and lower salaries.

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 4,368.4 million, a decrease of 9.2% from Ps. 4,812.0 million in 1H20. This decrease was mainly due to lower expenses in all segments, especially in Printing and Publishing.

Adjusted EBITDA reached Ps. 2,605.9 million, increase of 257.9% from Ps. 728.2 million reported for 1H20. This increase was driven by higher advertising revenues in Broadcasting and Programming and costs reduction initiatives across all segments to accompany the reduction in revenues derived from the impact of the COVID - 19 pandemic.

Following is a breakdown of adjusted EBITDA by business segment:

ADJUSTED EBITDA	1H21	1H20	YoY	2Q21	1Q21	2Q20	QoQ	YoY
(In millions of Ps.)
Printing and Publishing	413.3	(55.4)	(846.2%)	55.7	357.6	74.6	(84.4%)	(25.3%)
Broadcasting and	2,144.0	771.5	177.9%	1,150.7	993.3	834.5	15.9%	37.9%
Programming
Others	48.6	12.0	303.9%	(47.3)	95.9	25.1	(149.3%)	(288.8%)
Total	2,605.9	728.2	257.9%	1,159.1	1,446.8	934.2	(19.9%)	24.1%

Investor Relations

http://www.grupoclarin.com/ir

Financial results net totaled Ps. (1,171.9) million compared to Ps. (451.7) million in 1H20. This increase was mainly due to a negative inflation adjustment results versus a positive result in 2020, partially offset by lower negative interests and foreign exchange results, and negative result of operations with notes and bonds compared to a gain in 2020.

Equity in earnings from unconsolidated affiliates in 1H21 totaled Ps. 357.3 million, compared to Ps. 626.0 million in 1H20.

Other Income (expenses), net reached Ps. 68.1 million, compared to Ps. (332.5) million in 1H20, mainly from impairment of Goodwill in 2020.

Income tax as of 1H21 reached Ps. (218.3) million, from Ps. Ps. (248.3) million in 1H20.

Income for the period totaled Ps. 928.5 million, a change of -263.7% from a loss of Ps. 567.1 million reported in 1H20. The Equity Shareholders Net Income for the period amounted Ps. 914.4 million, a change of -364.6% YoY from a loss of 345.6 million.

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 459.4 million in 1H21, an increase of 22.2% from Ps. 376.0 million reported in 1H20. Out of the total CAPEX in 1H21, 87.8% was allocated towards the Broadcasting and Programming segment, 10.9% to the Printing and Publishing segment and the remaining 1.3% to other activities.

SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2021

(In millions of Ps.)	Printing &	Broadcasting	Others	Eliminations	Total	%
Publishing	& Programming
Advertising	1,717.7	5,225.9	-	(45.7)	6,897.9	44.4%
Circulation	4,407.8	-	-	-	4,407.8	28.4%
Printing	318.5	-	-	-	318.5	2.1%
Programming	-	2,691.7	-	-	2,691.7	17.3%
Other Sales	444.9	234.3	1,033.4	(509.1)	1,203.5	7.8%
Total Sales	6,888.9	8,152.0	1,033.4	(554.8)	15,519.4	100.0%

SALES BREAKDOWN BY SOURCE OF REVENUE - JUNE 2020

(In millions of Ps.)	Printing &	Broadcasting &	Others	Eliminations	Total	%
Publishing	Programming
Advertising	1,743.2	3,770.6	-	(49.1)	5,464.7	35.6%
Circulation	4,551.6	-	-	-	4,551.6	29.6%
Printing	684.6	-	-	(42.7)	641.9	4.2%
Programming	-	3,188.3	-	-	3,188.3	20.7%
Other Sales	932.7	50.0	1,012.6	(471.9)	1,523.4	9.9%
Total Sales	7,912.1	7,008.9	1,012.6	(563.7)	15,369.9	100.0%

Investor Relations

http://www.grupoclarin.com/ir

RESULTS BY BUSINESS SEGMENT

BROADCASTING AND PROGRAMMING

Revenues

Revenues increased by 16.3% to Ps. 8,152.0 million in 1H21, compared to Ps. 7,008.9 million in 1H20 mainly due to higher advertising revenues in ARTEAR and Radio Mitre, and higher revenues from motoring events, partially offset by lower programming revenues.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 8.9% to Ps. 4,284.1 million in 1H21, compared to Ps. 4,701.3 million in 1H20. This is mainly attributable to lower programming costs in Channel 13.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses increased by 12.2% to Ps. 1,723.9 million in 1H21, compared to Ps. 1,536.1 million in 1H20. The increase was primarily the result of restructuring costs in 2021 and the Emergency Assistance for Work and Production Program (ATP) granted in 2020.

Depreciation and Amortization

Depreciation and amortization expenses decreased by 15.3% to Ps. 353.2 million in 1H21 compared to Ps. 416.7 million reported in 1H20.

PRINTING AND PUBLISHING

Revenues

Total revenues decreased by 12.9% to Ps. 6,888.9 million in 1H21, mainly as a result of the un-consolidation of the postal business and lower printing services revenues.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 19.4% to Ps. 3,701.6 million in 1H21, compared to Ps. 4,595.4 million in 1H20. The decrease was mainly the result of the effect of the un-consolidation of the postal business and of lower raw materials consumption and salaries and severance payments.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses decreased by 17.7% to Ps. 2,774.0 million in 1H21, compared to the Ps. 3,372.2 million reported in 1H20. This was primarily the result of lower distribution costs, salaries, fees for services, bad debt and marketing and advertising costs.

Depreciation and Amortization

Depreciation and amortization expenses decreased by 24.2% to Ps. 223.2 million in 1H21 compared to Ps. 294.4 million in 1H20.

OTHERS

Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gestión Compartida S.A. to third parties, as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.

In this period, total revenues increased 2.1% to Ps. 1,033.4 , from Ps. 1,012.6 million reported in 1H20. EBITDA resulted in Ps. 48.6 million.

Investor Relations

http://www.grupoclarin.com/ir

OPERATING STATISTICS BY BUSINESS SEGMENT

PRINTING AND PUBLISHING

	1H21	1H20	YoY	2Q21	1Q21	2Q20	QoQ	YoY
Circulation (1)	222.6	231.1	-3.7%	215.8	229.4	220.2	-3.0%	-2.0%
Circulation share % (2)	39.6%	44.3%	-10.7%	40.5%	38.7%	46.7%	2.4%	-13.3%

1. Average number of copies according to IVC (including Diario Clarín and Olé)
2. Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: AGEA and IVC.
3. Share in Buenos Aires and Greater Buenos Aires Area (AMBA) Diario Clarín. Source: Monitor de Medios Publicitarios S.A.

BROADCASTING AND PROGRAMMING

	1H21	1H20	YoY	2Q21	1Q21	2Q20	QoQ	YoY
Advertising Share % (1)	36.6%	36.0%	1.5%	37.1%	35.7%	36.0%	2.4%	3.2%
Audience Share % (2)
Prime Time	28.7%	30.1%	-4.9%	27.0%	30.8%	28.8%	-6.9%	-6.3%
Total Time	30.0%	29.8%	0.7%	29.1%	31.0%	29.4%	-3.3%	-1.2%

1. Company estimates, over ad spend in Ps. In broadcast TV for AMBA region.
2. Share of broadcast TV audience according to IBOPE for AMBA. PrimeTime is defined as Monday through Friday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12 pm to 12 am.

DIGITAL KPIs

	1H21	1H20	YoY	2Q21	1Q21	2Q20	QoQ	YoY
Page Views (1)	869.4	1,145.3	-24.1%	880.4	858.4	1,120.4	1.3%	-21.4%
Mobile page Views	577.8	827.8	-30.2%	562.9	592.7	812.8	-2.5%	-30.7%

1. In millions. Average. Source DAX and Company Estimates.

DEBT AND LIQUIDITY

	(In millions of Ps.)			June			June			% Change
			2021			2020
Short Term and Long Term Debt
Current Financial Debt			364.5	587.6	(38.0%)
Financial loans			84.8	105.6	(19.7%)
Accrued interest			26.3	15.0	75.6%
Acquisition of equipment			24.1	18.5	30.2%
Related Parties Accrued Interest			11.6	13.5	(14.2%)
Related Parties Capital			6.5	10.2	(36.6%)
Bank overdraft			211.2	424.7	(50.3%)
Non-Current Financial Debt			1,574.7	1,789.4	(12.0%)
Financial loans			1,556.0	1,767.6	(12.0%)
Acquisition of equipment			18.7	21.8	(14.3%)
Total Financial Debt (A)			1,939.2	2,377.0	(18.4%)
Total Short Term and Long Term Debt			1,939.2	2,377.0	(18.4%)
Cash and Cash Equivalents (B)			3,490.5	3,512.3	(0.6%)
Net Debt (A) - (B)			(1,551.3)	(1,135.3)	36.6%
Net Debt/Adjusted Ebitda (1)			(0.26x)		(0.59x)	(55.7%)

Investor Relations http://www.grupoclarin.com/ir