Consolidated Annual Accounts 2017

Translation of financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Company in Spain (see Notes 2 and 22). In the event of discrepancy, the Spanish-language version prevails. 5 ATRESMEDIA CORPORACIÓN DE MEDIOS DE COMUNICACIÓN, S.A. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017 AND 2016 (Thousands of euros) 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES (I) 169,903 84,042 Profit for the year before tax 158,058 156,406 Adjustments for: (20,244) (23,566) - Depreciation and amortisation 20,799 21,254 - Impairment losses 8,044 (11,116) - Changes in provisions (1,947) (2,173) - Proceeds from disposals of non-current assets (23) (8) - Finance income (51,528) (36,739) - Finance costs 7,365 6,205 - Exchange gains/(losses) (16,831) (7,908) - Changes in fair value of financial instruments 13,877 6,919 Changes in operating assets and liabilities 18,546 (54,550) - Inventories 10,203 (30,813) - Trade and other receivables (11,180) (2,936) - Trade and other payables (5,413) (1,452) - Other current assets and liabilities 24,936 (19,349) Other cash flows from operating activities 13,543 5,752 - Interest paid (8,909) (3,876) - Dividends received 47,639 32,400 - Income tax received/(paid) (25,187) (22,772) CASH FLOWS USED IN INVESTING ACTIVITIES (II) (29,569) (23,706) Payments for investments (29,624) (26,949) - Group companies and associates (16,870) (13,491) - Property, plant and equipment and intangible assets (12,754) (13,458) Proceeds from sale of investments 55 3,243 - Group companies and associates 55 3,243 CASH FLOWS FROM FINANCING ACTIVITIES (III) (119,382) (60,544) Proceeds from and payments for equity instruments - (8,931) - Disposal of own equity instruments - (8,931) Proceeds from and payments for financial liability instruments 87,563 38,221 - Redemption and repayment of bank borrowings 84,580 20,702 - Proceeds from issue of borrowings from group companies and associates 2,983 17,519 Dividends and interest on other equity instruments paid (206,945) (89,834) - Dividends (206,945) (89,834) EFFECT OF EXCHANGE RATE FLUCTUATIONS (IV) - - NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV) 20,952 (208) Cash and cash equivalents at the beginning of the year 724 932 Cash and cash equivalents at the end of the year 21,676 724 Notes 1 to 21 to the accompanying financial statements are an integral part of the statement of cash flows for the year ended 31 December 2017