MONDO TV GROUP: The Board of Directors approved the draft of financial statements and the consolidated financial statements for 2019

Return to Net Profit for Euros 3.8 million, reporting a better result respect to preliminary results reported on 16 December 2019 (Euros 3.6 million)

Consolidated results in 2019:

• Value of Production at approximately EUR 26.7 million in 2019, compared to EUR 22.2 million in 2018 with a variation of around 20%
• EBITDA was around EUR 16.4 million in 2019, with a variation of 46% compared to EUR 11.2 million in 2018
• EBIT was positive for around EUR 6.4 million in 2019 compared to negative result of EUR 54.5 million in 2018
• Net result of the Group was a profit for approximately EUR 3.8 million in 2019 compared to a loss of the Group of EUR 39.5 million in 2018
• Net Financial Position as at 31 December 2019 showed an indebtedness at EUR 1.4 million compared to availabilities for around EUR 8.1 million as of 31 December 2018
• Net equity of the Group was at EUR 60.4 million with an increase of EUR 2.2 million compared to EUR 58.2 million as of 31 December 2018

Holding company's individual results in 2019:

• Value of Production was EUR 19.1 million in 2019, increasing of around 10% compared to EUR
• 1. million in 2018

• EBITDA was positive around EUR 14.2 million in 2019, compared to EUR 11.0 million in 2019 increasing for 29%
• EBIT was also positive at around EUR 6.9 million in 2019 compared to a negative value for EUR
• 1. million in 2018

• Net result was a profit at approximately EUR 3.7 million in 2019, compared to a loss of EUR 38.7 million in 2018
• Net Financial Position recorded availabilities for approximately EUR 3.1 million as at 31 December 2019, of which Euros 1.7 were mid-long term credits towards controlled companies, compared to availabilities for around EUR 16.5 million as of 31 December 2018
• Net equity was around EUR 63.9 million at 31 December 2019 with an increase of around Euros 4.4, compared to EUR 59.5 million as of 31 December 2018

30 March 2020. The Board of Directors of Mondo TV S.p.A. - holding company of a Group working in the production and distribution of cartoons for TV and the cinema -approved the draft financial statements and the consolidated financial statements as at 31 December 2019.

Consolidated results

Respect to 2018, the revenues increase, equal to Euros 3.7 million in absolute value and to 19% in percentage, was mainly attributable to the development of new projects by the Parent Company and the increase in turnover of the subsidiary Mondo TV France. The Parent Company reported the production and delivery of the series "Invention story", "Bat Pat 2", "Robot Trains Season 2 and 3" and

"MeteoHeroes" while with reference to Mondo TV France, the increase is due to completion of the series "Rocky Kwaternaire" and the production progress of the series "Disco Dragon".

Capitalized costs relating to the produced series were mainly related to the Holding Company's productions, and to those by Mondo TV France, and were equal to Euros 3.5 million (Euros 2.7 million in 2018): the increase is due to the higher progress in productions by the same Mondo TV France.

Operating costs decreased for Euros 0.7 million, mainly by virtue of the lower volume of productions costs and for the deletion of the rental costs for the offices as an effect of the IFRS 16 starting from January 1, 2019.

EBITDA passed from Euros 11.2 million in 2018 to Euros 16.4 million in 2019 with an increase equal to Euros 5.2 million; the increase of 47% was mainly caused by increase of the revenues opposed to a lowering of operational costs.

In light of the above, the operating result after amortization, depreciation and provisions (Euros 10.1 million in 2019, compared to Euros 65.7 million in 2018) was positive by Euros 6.3 million, compared to Euros 54.56 million of operating loss for 2018, with an increase of Euros 60.9 million in absolute terms.

In the financial year 2019 the financial management was negative for Euros 0.3 million, compared to a negative result of Euros 0.5 million in 2018.

After tax on income for Euros 2.1 million (positive for Euros 11.5 million in 2018 for the recording of anticipated tax), a net profit s was reported, it being equal to Euros 3.8 million, compared to a loss of Euros 39.5 million in preceding year, with a positive variation of Euros 43.3 million in absolute terms.

The consolidated net financial position, showed indebtedness for Euros 1.4 million, compared to a net availability of Euros 8.1 million as at 31 December 2018, by virtue of the investments made in the new productions and the introduction of the new accounting principle IFRS 16, which extended to operative leasing the same accounting regime applied to financial leasing: the effect of the change of accounting principle was a higher debt for Euros 1.5 million: without such effect, the NFP would be positive for Euros 0.1 million.

Net equity of the group went from Euros 58.2 million at 31 December 2018 to Euros 60.4 million at 31 December 2019).

Results of the parent company

Respect to 2018, the revenues increase was equal to Euros 1.7 million in absolute value and to 10% in percentage, and was mainly determined, as said above, by the progress of the new projects by Mondo TV.

Capitalized costs relating to the produced series were equal to Euros 1.1 million (Euros 1.1 million in 2018).

Operating costs were Euros 4.8 million (Euros 6.4 million in 2018) by virtue of the lower volume of productions costs and for the deletion of the rental costs for the offices as an effect of the IFRS 16 starting from January 1, 2019.

EBITDA went from Euros 11.0 million in 2018 to Euros 14.2 million in 2019 with an increase of Euros 3.2 million in absolute; the increase of 30% in percentage was mainly due to the higher volume of revenues opposed to lower operating costs.

In light of the above, the operating result after amortization, depreciation and provisions for Euros 7.4 million (Euros 59.2 million in 2018) was positive for Euros 6.9 million, compared to an operating loss of Euros 48.2 million in 2018, with an increase of Euros 55.1 million in absolute terms.

In the financial year 2019, the financial management was negative for Euros 1.2 million, against a negative result of Euros 1.8 million in 2018, mainly determined by the rectification of the stake into Mondo TV Iberoamérica for Euros 1.1 million (Euros 2.2. million in the preceding year).

After tax for Euros 1.9 million (Euros 11.4 million of fiscal charges in 2018), a net profit was reported, it being equal to Euros 3.7 million, compared to a loss of Euros 38.7 million in preceding year.

The net financial position, showed availabilities for Euros 3.1 million (of which Euros 1.7 were represented by mid-long term financial credits toward the controlled companies), compared to net availabilities for Euros 16.5 million as of 31 December 2018, by virtue of the investments made in the new productions and the introduction of the new accounting principle IFRS 16, which extended to operative leasing the same accounting regime applied to financial leasing: the effect of the change of accounting principle was a higher debt for Euros 1.3 million: without such effect, the NFP would be positive for Euros 4.4 million.

Cash availabilities of Mondo TV amounted to Euros 6.4 million as of 31 December 2019.

Net equity went from Euros 59.5 million at 31 December 2018 to Euros 63.9 million at 31 December 2019 mainly by virtue of the loss profit in the year for Euros 3.7 million.

In terms of management, it should be noted that with regard to Asian customers with whom settlement agreements were reached in 2019, the relationships connected with the existing productions and the cashing of the relevant credits continued regularly.

Destination of the result

The Board of Directors deliberated to propose the carrying forward of the year result.

Business Outlook and important facts after the end of the financial year

The company is implementing the strategic line defined in the Business Plan approved by the Parent Company's Board of Directors on last 10 December, through the acquisition of new productions geared towards the Group's licensing and internationalization. In the first quarter of 2020, the collaboration with the German company Toon2Tango was strengthened, with the start of the development of three further productions and with the worldwide distribution mandate for Mondo TV, both for television rights and licensing, of two further series produced from third parties.

On February 10, 2020, the Company filed a wide appeal against a notice of recovery of the Tax Authority with which it contested, following to the report on 23 May 2019, the compensations made in 2012 by means of the tax credit generated by the "conversion" of deferred tax assets ("DTA") in tax credits made pursuant to art. 2, paragraphs 55-58, d.l. n. 225/2010. In the opinion of the professionals in charge of the defense of the company, there are very valid elements of both a formal nature (pertaining to the forfeiture of the tax power), and substantial (pertaining to the formation of DTA civil credits and their conversion into DTA tax credits), to counteract what has been stated by the Tax Authority. For these reasons, the risk of losing the case is considered unlikely, as has already happened in tax disputes in previous years, all resolved with the acceptance of the appeals presented by the Company and with the loss of the Tax Authority. In any case, in light of the amount of the dispute (2,328 thousand Euros plus penalties and interests) the appeal was preceded by a request for self-protection, in order to keep the dialogue, open with the Agency, which also continued by sending further documentation.

To date, no significant impacts are expected from the crisis relating to COVID-19, as the company has been structured in such a way as to continue normal operations even with remote smart work modalities and there are currently no significant slowdowns by the both domestic and foreign suppliers; as regards the acquisition of new contracts, the group has contracts and sufficient liquidity for the

coming months to achieve the objectives set in the business plan; furthermore, the media sector currently appears to be among the least affected by the emergency; on the contrary, the audience of children's television channels is currently on the rise and this may constitute a business opportunity for the group in the coming months.

Therefore, it should be noted that to date there have been no events occurring after 31 December 2019 such as to make the current financial and account statements on substantially different from that resulting from the balance sheet on that date or to require adjustments or supplementary notes to the financial sand accounting statements.

Statement of the Financial Director

The financial director, responsible for the drafting of the company's accounting statements (Mr. Carlo Marchetti) states, pursuant to sect. 154-bis, 2nd paragraph, of Lgs. Decree Nr. 58/1998, that the accounting information included in this communication reflects the results of the accounting documents, books and records.

* * * * *

The Board also approved the corporate governance and remuneration reports. Independency requirements of the independent directors have been verified.

* * * * *

The income statement, the balance sheet, the cash flow statement and the net financial position with reference to the consolidated and parent company situation are attached to this press release. The relevant data are currently being audited.

* * * * *

The documentation for the shareholders' meeting, the date of which will be postponed from the date of April 29, 2020 but which has yet to be determined in the light of the emergency connected to Covid-19, will be filed within the terms under the applicable legal and regulatory procedures. The date of the meeting will be notified through a separate press release.

Mondo TV, listed in the Star segment of Borsa Italiana, is the holding company of a Group made up of four more companies; the Group is a leader in Italy and among the primary European operators in the production and distribution of television series and cartoon films for TV and the cinema, and is active in the related sectors (audiovisual and musical distribution, licensing, media, publishing and merchandising).

For further information on Mondo TV, visit www.mondotv.it.

ISIN code: IT0001447785 - Acronym: MTV - Negotiated on MTA - Reuters: MTV.MI - Bloomberg: MTV.IM

Contact:	Mondo TV
	Piergiacomo Pollonio
	Investor Relator
	[e-mail]

MONDO TV GROUP (Thousands of Euros)

Consolidated Income Statement

	2019	2018
Revenues from sales and services	23.056	18.914
Other revenues	134	584
Capitalization of internally produced cartoon series	3.493	2.701
Raw materials, consumables and goods used	(59)	(57)
Payroll costs	(4.073)	(3.816)
Amortization and impairment of intangible assets	(9.264)	(41.701)
Depreciation and impairment of property, plant and	(95)	(140)
equipment
Amortization of use rights	(580)	0
Allowances against receivables	(157)	(23.879)
Other operative costs	(6.111)	(7.131)

Operative result	6.344	(54.525)
Financial availabilities	328	1.431
Financial charges	(662)	(924)
Profit (loss) before tax	6.010	(54.018)
Income taxes	(2.109)	(11.513)
Profit (loss) for the period	3.901	(42.505)
Profit attributable to non-controlling interests	69	(2.991)
Profit attributable to the Group	3.832	(39.514)

MONDO TV GROUP

Consolidated Statement of Financial Position

Thousand of Euros	31.12.19	31.12.18
Non-current assets
- Intangible rights	35.733	30.888
- Other intangible assets	40	29
Intangible assets	35.773	30.917
Property, plant and equipment	246	369
Use rights on goods in leasing	1.372	0
Equity investments	95	0
Deferred tax assets	12.965	14.680
Receivables	41	31

	50.492	45.997
Current assets
Trade receivables	24.857	20.622
Tax credits	2.562	3.688
Other assets	262	462
Cash and cash equivalents	7.999	12.463
	35.680	37.235
Total assets	86.172	83.232
- Share capital	18.207	18.207
- Share premium reserve	30.778	45.868
- Legal reserve	3.062	3.062
- Further reserves	7.971	9.774
- Accumulated losses	(3.489)	20.784
- Profit (loss) for the period	3.832	(39.514)
Equity attributable to the Group	60.361	58.181
Equity attributable to non-controlling interests	1.211	(2.071)
Total equity	61.572	56.110
Non-current liabilities
Employee severance indemnity	566	545
Deferred tax liabilities	66	66
Financial payables	3.037	1.322
Non-current Financial payables on goods in leasing	1.077	0
	4.746	1.933
Current liabilities
Provisions for risks and charges	27	27
Trade payables	13.771	21.631
Financial payables	4.829	3.007
Current financial payables on goods in leasing	431	69
Tax payables	796	455
	19.854	25.189
Total liabilities	24.600	27.122
Total liabilities + equity	86.172	83.232

MONDO TV GROUP

Consolidated Net Financial Position

Thousand of Euros	31.12.2019	31.12.2018
Cash and cash equivalents	7.999	12.463
Current financial payables towards banks	(3.298)	(3.007)
Current net financial (indebtedness) cash	(431)	(69)
Debts for convertible bonds	(1.531)	0
Non-current bank payables	2.739	9.387
Net non-current indebtedness	(1.077)	0
Net financial indebtedness as per Consob communication	(3.037)	(1.322)
DEM/6064293
Non-current receivables to third parties	(4.114)	(1.322)
Consolidated net financial position	(1.375)	8.065

MONDO TV GROUP

Consolidated statement of cash flows

Thousand of Euros	2019	2018
A. OPENING CASH AND CASH EQUIVALENTS	12.463	2.408
Profit (loss) of the Group for the period	3.832	(39.514)
Profit (loss) of third parties interests	69	(2.991)
Total profit (loss) for the period	3.901	(42.505)
Amortization and impairment	10.096	65.720
Net change in provisions	21	36
Deferred tax effects	1.715	(11.578)
Cash flows from (used in) operating activities before	15.733	11.673
changes in working capital
(Increase) / decrease in trade receivables	(4.402)	2.779
(Increase) / decrease in tax assets	1.126	224
(Increase) / decrease in in other assets	200	(128)
Increase / (decrease) in trade payables	(7.860)	6.963
Increase / (decrease) in tax liabilities	341	(198)
Increase / (decrease) in other liabilities	0	(3.611)
B. NET CASH FROM (USED IN) OPERATING ACTIVITIES	5.138	17.702
(Purchase) / Disposal of fixed assets
- Intangible assets	(14.120)	(28.470)
- Property, plant and equipment	(72)	(122)
- Use rights on goods in leasing	(18)	0
- Financial assets	(95)	0
C. NET CASH FROM (USED IN) INVESTING ACTIVITIES	(14.305)	(28.592)
Capital movements	1.766	20.906
Paid interests	2.937	39
D. NET CASH FROM (USED IN) FINANCING ACTIVITIES	4.703	20.945
E. NET INCREASE (DECREASE) IN CASH AND CASH	(4.464)	10.055
EQUIVALENTS (B+C+D)
F. CLOSING CASH AND CASH EQUIVALENTS	7.999	12.463

MONDO TV S.p.A.

Income statement of Mondo TV S.p.A.

( Values in euros units)	2019	2018
Revenues from sales and services	17.908.012	15.708.023
Other revenues	46.074	559.050
Capitalization of internally produced cartoon
series	1.112.811	1.086.726
Raw materials, consumables and goods used	(32.022)	(45.601)
Payroll costs	(1.571.823)	(1.490.454)
Amortization and impairment of intangible
assets	(6.818.645)	(35.982.460)
Depreciation and impairment of property,	(66.827)	(110.667)
plant and equipment
Amortization of use rights	(404.099)	0
Allowances against receivables	(100.000)	(23.114.504)
Other operative costs	(3.220.525)	(4.859.664)
Operative result	6.852.956	(48.249.551)
Financial profit	398.395	1.488.313
Financial loss	(490.149)	(1.099.726)
Rectification on financial assets	(1.100.000)	(2.231.937)
Profit (loss) before tax	5.661.202	(50.092.901)
Income taxes	(1.915.597)	11.392.946
Profit (loss) for the period	3.745.605	(38.699.955)
Profit (loss) per share, base and diluted	0,10	(1,30)
Profit (loss) diluted per share	0,10	(1,30)

MONDO TV S.p.A.

Statement of Financial Position

(Values in euros units)	31.12.19	31.12.18
Non-current assets
- Intangible rights	33.918.135	27.537.140
- Other intangible assets	38.760	25.728
Intangible assets
33.956.895	27.562.868
Property, plant and equipment	135.033	268.858
Equity investments	1.199.708	0
Use rights on goods in leasing	9.141.211	2.765.173
Deferred tax assets	12.538.812	14.268.344
Receivables	1.693.631	5.234.628
	58.665.290	50.099.871
Current assets
Trade receivables	18.940.957	18.100.212
Financial receivables	145.013	145.013
Tax credits	1.739.832	2.817.413
Other assets	261.497	461.418
Cash and cash equivalents	6.374.721	11.994.290
	27.462.020	33.518.346
Total assets
86.127.310	83.618.217
- Share capital	18.207.106	18.207.106
- Share premium reserve	30.777.910	45.867.585
- Legal reserve	3.061.555	3.061.555
- Further reserves	8.114.216	8.136.225
- Accumulated profit (losses)	0	22.894.425
- Profit (loss) for the period	3.745.605	(38.699.955)
Total equity	63.906.392	59.466.941
Non-current liabilities
Employee severance indemnity	566.056	545.060
Provisions for risks and charges	4.093.868	2.993.868
Deferred tax liabilities	65.974	65.974
Financial payables	2.567.562	251.758
Non current financial debts on goods in leasing	1.062.372	0
	8.355.832	3.856.660
Current liabilities
Provisions for risks and charges	27.247	27.247
Trade and other payables	12.015.454	19.447.756
Financial payables	1.187.082	625.034
Current financial debts on goods in leasing	269.570	0
Tax payables	365.733	194.579
	13.865.086	20.294.616
Total liabilities
22.220.918	24.151.276
Total liabilities + equity	86.127.310	83.618.217

MONDO TV S.p.A.

Net Financial Position of Mondo TV S.p.A.

(Values in euros units)	31.12.2019	31.12.2018
Cash and cash equivalents	6.375	11.994
Current financial receivables	145	145
Current financial payables towards banks	(1.187)	(625)
Current financial debts as per IFRS 16	(270)	0

Current net financial (indebtedness) cash	5.063	11.514
Non current payables towards banks	(2.568)	(252)
Non current financial debts as per IFRS 16	(1.062)	0
Non current net indebtedness	(3.630)	(252)
Net financial indebtedness as per Consob communication DEM/6064293	1.433	11.262
Non-current receivable towards controlled companies	1.694	5.235
Net Financial Position	3.127	16.497

MONDO TV S.p.A.

Statement of cash flows of Mondo TV S.p.A.

Values in euros units	2019	2018
A. OPENING CASH AND CASH EQUIVALENTS	11.994.290	1.276.069
Profit (loss) for the period	3.745.605	(38.699.955)
Amortization and impairment	7.389.571	59.207.631
Net change in provisions	1.120.996	2.293.198
Effects of deferred fiscal charges	1.729.532	(11.571.004)
Cash flows from (used in) operating activities	13.985.704	11.229.870
before changes in working capital
(Increase) / Decrease in trade and other	(940.745)	2.891.674
receivables
(Increase) / Decrease in tax assets	1.077.581	966.564
(Increase) / Decrease in other assets	199.921	(127.634)
Increase / (Decrease) in trade payables	(7.432.302)	5.888.385
Increase / (Decrease) in tax payables	171.154	(8.640)
Increase / (Decrease) in other liabilities	0	(3.610.667)
B. NET CASH FROM (USED IN) OPERATING	7.061.313	17.229.552
ACTIVITIES
(Purchase) / Disposal of fixed assets
- Intangible assets	(13.212.672)	(25.880.014)
- Property, plant and equipment	(32.679)	(64.797)
- Use rights on goods in leasing	(18.132)	0
- Financial assets	(6.376.038)	(633.027)
C. NET CASH FROM (USED IN) INVESTING	(19.639.521)	(26.577.838)
ACTIVITIES
Capital movements	895.872	20.912.864
(Increase) / Decrease in financial receivables	3.540.997	250.233
and securities
Increase / (Decrease) in financial payables	2.521.770	(1.096.590)
D. NET CASH FROM (USED IN) FINANCING	6.958.639	20.066.507
ACTIVITIES
E. NET INCREASE (DECREASE) IN CASH AND	(5.619.569)	10.718.221
CASH EQUIVALENTS (B+C+D)
F. CLOSING CASH AND CASH EQUIVALENTS	6.374.721	11.994.290