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 8 The public deed of merger between Atresmedia Corporación de Medios de Comunicación, S.A. and Gestora de Inversiones Audiovisuales La Sexta, S.A. was filed with the Madrid Mercantile Register on 31 October 2012, and, as a result, the latter was dissolved and all its assets and liabilities were transferred en bloc to the former. The Parent is required to prepare, in addition to its separate financial statements, the consolidated financial statements of the Group. In 2017, the Group acquired Smartclip, which provides marketing solutions in the digital advertising market (see Note 4). In view of the business activities carried on by the Group companies, they do not have any environmental liability, expenses, assets, provisions or contingencies that might be material with respect to the equity, financial position and results of operations of the corporate Group. Therefore, no specific disclosures relating to environmental issues are included in these notes to the consolidated financial statements. 2. Basis of preparation and consolidation a) Basis of preparation The consolidated financial statements have been prepared on the basis of the accounting records kept by the Parent and by the other Group companies in accordance with International Financial Reporting Standards as adopted by the European Union (EU- IFRSs), in conformity with Regulation (EC) no. 1606/2002 of the European Parliament and of the Council. The consolidated financial statements have been prepared taking into account all the mandatory accounting principles and rules, and measurement bases with a material effect on the consolidated financial statements, as well as the alternative treatments permitted by the relevant standards in this connection, and, accordingly, they present fairly the Group's consolidated equity and consolidated financial position at 31 December 2017, and its results, the changes in consolidated equity and the consolidated cash flows in the year then ended. However, since the accounting policies and measurement bases used in preparing the Group's consolidated financial statements for 2017 (EU-IFRSs) differ from those used by the Group companies (Spanish National Chart of Accounts, Plan General Contable), the required adjustments and reclassifications were made on consolidation to unify the policies and methods used and to make them compliant with EU-IFRSs. In addition to EU-IFRSs, all the requirements included in the Spanish Commercial Code (Código de Comercio) and the Spanish Companies Act (Ley de Sociedades de Capital) were applied in these consolidated financial statements, as well as other applicable aspects of Spanish accounting regulations in force. The consolidated financial statements for the year ended 31 December 2017 were authorised for issue by the Parent's directors at the Board of Directors Meeting held on 28 February 2018. The Group’s consolidated financial statements for 2017 and the separate financial statements of the Group companies, which were authorised for issue by the companies' respective directors, will be submitted for approval by shareholders at their respective General Meetings. They are expected to be approved without any changes.