TF1 : Q1 2022 MANAGEMENT REPORT

Management Report First Quarter 2022

Management Report - 1st Quarter 2022

1. Q1 2022 financial information .......................................................................... 3

• 1.1 Consolidated results ............................................................................................................ 3

• 1.2 Significant events of the first quarter of 2022 .................................................................... 5

• 1.3 Analysis of consolidated results .......................................................................................... 6

• 1.4 Segment information .......................................................................................................... 7

• 1.5 Corporate social responsibility .......................................................................................... 12

• 1.6 Human resources update .................................................................................................. 13

• 1.7 Outlook .............................................................................................................................. 13

• 1.8 Corporate governance ....................................................................................................... 14

• 1.9 Diary dates ......................................................................................................................... 14

2 Q1 2022 Condensed consolidated Financial Statements ................................. 15

Consolidated income statement .............................................................................................. 15

Statement of recognised income and expense ....................................................................... 16

Consolidated cash flow statement .......................................................................................... 17

Consolidated balance sheet - Assets ........................................................................................ 18

Consolidated balance sheet - Liabilities and equity ................................................................ 19

Consolidated statement of changes in shareholders' equity .................................................. 20

Notes to the condensed consolidated financial statements ................................................... 21

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TF1 - Q1 2022 financial information

1. Q1 2022 financial information

1.1 Consolidated results

Financial indicators

These key figures are extracted from TF1 group consolidated financial data. The results below are presented in accordance with IFRS 16.

The results below are presented using the segmental reporting structure as described in Note 3 to the consolidated financial statements.

(M€)

Revenue

Group advertising revenue Revenue from other activitites

Current operating profit/(loss)

Operating profit/(loss)

Net profit/(loss) from continuing operations

Operating cash flow after cost of net debt, interest expense on lease obligations and income taxes paid

Basic earnings per share from continuing operations (€)

Diluted earnings per share from continuing operations (€)

Shareholders' equity attributable to the Group Net cash/(debt) of continuing operations

Q1 2022

Q1 2021

Weighted average number of ordinary shares outstanding ('000)

Closing share price at end of year (€)

Market capitalisation at end of year (€bn)

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TF1 - Q1 2022 financial information

Income statement contributions - continuing operations

The results below are presented using the segmental reporting structure as described in Note 3 to the consolidated financial statements.

(€m)	Q1 2022
TF1 group advertising revenue*	377.1
Revenue from other activities*	184.2
Media**	485.5
Advertising revenue**	377.1
o/w digital advertising revenue**	30.2
Newen Studios**	75.8
Consolidated revenue*	561.3
Media**	56.9
Newen Studios**	2.7
Current operating profit*	59.6
Current operating margin*	10.6%
Operating profit*	56.2
Net profit attributable to the Group*	34.1
Cost of programmes*	(220.0)
*Published data
**Proforma data
Analysis of cost of programmes
(€M)
Total cost of programmes

Q1 2021	CHG. €M	CHG. %
357.9	19.2	5.4%
151.9	32.3	21.3%
444.5	41.0	9.2%
357.8	19.3	5.4%
27.9	2.3	8.2%
65.3	10.5	16.1%
509.8	51.5	10.1%
46.8	10.1	21.6%
10.0	(7.3)	-73.0%
56.8	2.8	4.9%
11.1%	-	-0.5 pts
56.8	(0.6)	-1.1%
34.3	(0.2)	-0.6%
(210.8)	(9.2)	4.4%
Q1 2022	Q1 2021
(220.0)	(210.8)
TV dramas / TV movies / Series / Theatre	(78.7)	(72.0)
Entertainement	(66.8)	(63.4)
Movies	(28.3)	(25.1)
News (including LCI)	(35.3)	(34.7)
Sport	(8.5)	(12.8)
Kids	(2.4)	(2.7)

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TF1 - Q1 2022 financial information

1.2 Significant events of the first quarter of 2022

January

March

25 January 2022

17 March 2022

Newen Studios announces it is strengthening its strategic partnership with European producer and financier, Anton, which specialises in audiovisual financing, co-production and distribution. Anton is increasing its investment alongside Newen Studios by 40% to provide a global budget of €50 million to co-invest in audiovisual and film distribution rights. This agreement will allow Newen Studios to expand even further to meet the growing demand for quality content.

February

28 February 2022

On 28 February 2022, the TF1 Group announces that Altice Media has entered into a purchase agreement in respect of the TFX channel (DTT channel 11), and that the Group has granted an exclusivity clause in favour of Altice Media.

Completion of the sale is subject in particular to informing and consulting the employee representative bodies; to obtaining clearance from the relevant authorities (the French Competition Authority and ARCOM - the French Audiovisual and Digital Advertising Regulator); and to completion of the proposed merger between the TF1 and M6 groups.

After obtaining its first certificate in 2018, the TF1 Group renewed its ISO 50001 certification with AFNOR (the French national organisation for standardisation). This award recognises the efforts made by the Group over the last few years to combat global warming and notably commends the 33% reduction in energy consumption since 2011 in its Tour TF1 premises.

With the renewal of this certification, the TF1 Group is encouraged to step up its commitment towards a more responsible development model. TF1 intends to "positively inspire society" by implementing a climate strategy at the heart of the Group, by repurposing internal mobility, and by creating two new Data Centres to optimise energy consumption at its IT facilities.

24 March 2022

As part of the proposed merger between TF1 and M6, France TV expressed its wish, if the merger is completed, to divest its equity interest in Salto. The TF1 and M6 groups have undertaken that if the merger is completed, they would buy out the 33.33% equity interest held by France Télévisions at a definitive value of €45 million. The new group would then own 100% of Salto, enabling it to develop a streaming project.

Consequently, the TFX channel will remain under the full control of the TF1 Group throughout 2022. The sale of TFX would come under the framework of the proposed merger between the TF1 and M6 groups announced on 17 May 2021.

In accordance with legislation, it would contribute to ensuring that the combined group, does not broadcast more than seven national channels on the DTT network.

Since the agreement depends on the actual merger between the M6 and TF1 Groups, Salto will remain under the joint control of its three shareholders throughout 2022 to facilitate the ongoing development of the platform.

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