Results 9M21

Vocento, S.A. y Sociedades Dependientes

RESULTADOS ENERO-JUNIO 2019

26 de julio de 2019

Results for January-September 2021

11 NOVEMBER 2021

Vocento, S.A. and Subsidiaries

Results report January - September 2021

PERFORMANCE OF VOCENTO BUSINESSES

VOCENTO is a multimedia group, whose parent company is VOCENTO, S.A. It is dedicated to the various areas that comprise the media sector. For the organisation of management information, a number of business lines have been defined. Reports to the market are based on this organization of information, which covers all the businesses in which VOCENTO is present, assigned to their respective business segments.

IMPORTANT NOTE

To facilitate the analysis of financial information and understand the organic performance of the Company, it is always indicated in this report when operating expenses, EBITDA, the net result or financial debt are affected by non-recurring or extraordinary items, including adjustments to the workforce. Further details about these adjustments can be found in Appendix I at the end of this document: Alternative Performance Measures.

Furthermore, while it is standard to compare the information from 9M21 with that of the prior year, in this report we have decided that it is more helpful to compare the period with the performance in 9M19.

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Vocento, S.A. and Subsidiaries

Results report January - September 2021

Main highlights of the financial performance of the businesses in 9M21

Continuity of Group strategy, digital areas strengthened

Good progress made towards returning to EBITDA level of 2019

Significant reduction of debt, cash generation creates strong capacity to carry

out new investments

• Increase in digital advertising
• 1. In 3Q21 there was a slowdown in the decrease in VOCENTO advertising revenues compared with 3Q19, at -8.9%. In 9M21, VOCENTO has increased its share of the advertising market (9M21 vs 9M19 -15.4% for VOCENTO, -17.1% for the market). On a quarterly basis, the decrease compared with 2019 is slowing down.
  2. Online advertising ex-Classifieds rose by +18.0% vs 9M19. Digital advertising revenues now represent more than half of VOCENTO's total advertising revenues (51.0% in
     9M21), up 9.9 p.p. compared with 9M19.
  3. There was a +29% increase in the number of paying digital subscribers, to 81,000 in September 2021.
  4. The Classifieds business has been reinforced with a series of strategic initiatives, including the acquisition of Premium Leads and the development of new services for the auto sector. The semiconductor crisis resulted in low stock levels of used vehicles.
• Advancing towards EBITDA levels of 2019
• 1. The margin on readers (the margin on circulation revenues and on digital subscriptions) was higher in 9M21 than in 9M20 (by +3,698 thousand euros) and also than in 9M19 (by +2,699 thousand euros), despite the fall in circulation.
  2. Comparable costs were cut by -11.4% vs 9M19, offsetting 84% of the decrease in revenues.
  3. EBITDA in 9M21 was 21,683 thousand euros, up 1,249 thousand euros vs 9M19, reflecting the absence of compensation payments in 9M21 (-6,829 thousand euros in 9M19).
  4. In the last two quarters, EBITDA was in line with comparable EBITDA in 2019 (variation 2Q21 +82 thousand euros and 3Q21 -510 thousand euros).
• Reduction of net financial debt, with increased cash generation
• 1. Ordinary cash flows in 9M21 increased to 20,235 thousand euros, vs 7,438 thousand euros in 9M20 and 17,121 thousand euros in 9M19.
  2. NFD ex IFRS 16 in 9M21 was -17,936 thousand euros, compared with -46,590 thousand euros in 2020. The divestments of the real estate assets of El Diario Vasco and a 45% stake in Izen reduced net debt by 24,615 thousand euros.
  3. Low leverage levels mean that there is significant capacity for investments: NFD/LTM EBITDA ex IFRS16 in 9M21 0.5x vs 1.5x in December 2020.

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Vocento, S.A. and Subsidiaries

Results report January - September 2021

Main financial data

Consolidated profit and loss account

IFRS Thousand euros	9M21	9M20	Var Abs	Var %
Circulation revenues	85,299	88,030	(2,731)	(3.1%)
Advertising revenues	99,936	95,759	4,177	4.4%
Other revenues	64,267	57,705	6,561	11.4%
Total revenue	249,501	241,495	8,007	3.3%
Staff costs	(107,714)	(106,620)	(1,094)	(1.0%)
Procurements	(18,782)	(19,466)	684	3.5%
External Services	(99,769)	(102,135)	2,366	2.3%
Provisions	(1,553)	(1,720)	167	9.7%
Operating expenses (without D&A)	(227,818)	(229,941)	2,123	0.9%
EBITDA	21,683	11,554	10,130	87.7%
Depreciation and amortization	(15,158)	(14,748)	(410)	(2.8%)
Impairment/gains on disposal of tan. & intan. assets	10,855	(126)	10,981	n.r.
EBIT	17,380	(3,321)	20,701	n.r.
Impairments/reversal of other intangible assets	(1,500)	(4,507)	3,007	66.7%
Profit of companies acc. equity method	(280)	425	(706)	n.r.
Net financial income	(1,708)	(1,997)	288	14.4%
Net income from disposal of non-current assets	(922)	(218)	(704)	n.r.
Profit before taxes	12,969	(9,618)	22,587	n.r.
Corporation tax	(4,032)	(1,365)	(2,667)	n.r.
Net profit for the year	8,937	(10,983)	19,920	n.r.
Minority interests	(5,811)	(3,147)	(2,664)	(84.6%)
Net profit attributable to the parent	3,127	(14,130)	17,256	n.r.
Note: figures are rounded to the nearest thousand euro.
Staff costs ex non recurring costs	(107,714)	(102,376)	(5,338)	(5.2%)
Operating revenues
	Operating Expenses ex	non recurring costs	(227,818)	(225,697)	(2,121)	(0.9%)
Comparable EBITDA	21,683	15,797	5,886	37.3%
In 9M21 operating revenues rose by 3.3% from 9M20 to stand at 249,501 thousand euros.

By type of revenue:

1. Circulation revenuesdecreased by -3.1%. The total number of digital subscribers increased by +29% to 81k in September, with 57k at the Regional press (ON+ and KyM) and 23k at ABC (ABC Premium and KyM). The total number of subscribers is 95k, close to the 100k target set for December 2021.
2. Advertising revenuesincreased by +4.4%, with a rise in 3Q21 of +1.3%. Compared with 3Q19, there was a decrease of -8.9%.
   In 9M21, VOCENTO advertising revenues outperformed the market both in print (9M21 vs 9M19 -26.5% vs -30.9% for the market), and in digital advertising excluding Classifieds (+18.0% vs +6.3%).

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Vocento, S.A. and Subsidiaries

Results report January - September 2021

Advertising performance, VOCENTO vs. the market 9M21 vs 9M19

Data in %

Note 1: source i2p ex social media and search engines. Data from 20th Oct release.

On a quarterly basis, there has been a steady slowdown in the rate of decline compared with 2019: -22.6% in 1Q, -14.1% in 2Q and -8.9% in 3Q.

In terms of the performance of local and national advertising, both segments recorded increases in 9M21 vs 9M20 (+9.3% for national and +1.7% for local). In 3Q, local advertising was at nearly the same level as before the pandemic (-3.3% lower in 3Q21 than in 3Q19).

National advertising vs local1

Data in %

Note 1: net advertising. Not including Audiovisual, sales companies or eliminations.

Including not only digital advertising revenues but also e-commerce revenues booked within other revenues, the total digital contribution to advertising increased by +6 p.p. from 9M20, to stand at 51.0%.

Changing revenue profile from advertising and new digital businesses

Data in %

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