Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. and Subsidiaries Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 2 and 29). In the event of discrepancy, the Spanish-language version prevails. 2017 CONSOLIDATED FINANCIAL STATEMENTS 6 ATRESMEDIA CORPORACIÓN DE MEDIOS DE COMUNICACIÓN, S.A. AND SUBSIDIARIES Notes to the 2017 consolidated financial statements 1. Group activities Atresmedia Corporación de Medios de Comunicación, S.A. the “Company” or the “Parent”), the parent of the Atresmedia Group (the “Group”), was incorporated on 7 June 1988. Its registered address is Avenida Isla Graciosa, 13, San Sebastián de los Reyes, Madrid. The Company's sole object on its incorporation was the indirect management of a public television service. For this purpose, it submitted a bid in the tender held under Article 8 of Private Television Law 10/1988, of 3 May, and, pursuant to a resolution of the Spanish Cabinet of 25 August 1989, was awarded a concession for the indirect management of the public television service for a period of 10 years. The concession ended on 3 April 2000. On 7 May 1996, the shareholders at the General Meeting resolved to change and extend the company object, as permitted by Satellite Telecommunications Law 37/1995. On 10 March 2000, the Spanish Cabinet adopted a resolution renewing the concession for the indirect management of the public television service for a period of 10 years from 3 April 2000. The terms of this renewal were the same as for the former concession, with the added obligation of commencing digital broadcasting on 3 April 2002. The Parent made all the necessary investments, so on that day it began broadcasting the Atresmedia Corporación de Medios de Comunicación, S.A. signal pursuant to Royal Decree 2169/1998, of 9 October, which approved the Spanish Technical Plan for Digital Terrestrial Television (DTT). On 3 April 2010, the State Administration (Administración del Estado) renewed, for a period of 10 years, the concession for the indirect management of the public television service, under the same terms and conditions as the previous concession. Additional Provision One of Royal Decree 944/2005, of 29 July, approving the Spanish Technical Plan for Digital Terrestrial Television established 3 April 2010 as the date for the switch-off of analogue television broadcasting in all the transition projects defined in the National Plan for the Transition to Digital Terrestrial Television. From that date onwards, all terrestrial television was broadcast using digital technology. Following this milestone, in accordance with Additional Provision Three of Royal Decree 944/2005, of 29 July, each national terrestrial public television service concession operator would gain access to a digital multiplex with national coverage. Royal Decree 365/2010, of 26 March, governs the allocation of the Digital Terrestrial Television multiplexes following the switch-off of terrestrial television broadcasting using analogue technology. This Royal Decree established two phases for the allocation of the digital multiplexes: phase 1 (transitional), in which each national terrestrial public television service concession operator would gain access to the capacity equivalent to one digital multiplex with national coverage, provided they demonstrate compliance with the terms and conditions established in relation to the promotion and development of digital terrestrial television; and phase 2, in which new digital multiplexes would be planned, and adjustments would be established so that the radioelectric channels 61 to 69, which were being used by the digital multiplexes in the previous phase, could be replaced by others in phase 2. This would conclude by 1 January 2015 with the allocation of the definitive digital multiplexes to each qualifying company, thereby ending the shared use of digital multiplex capacity by the national terrestrial public television service concession operators.