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 15 Associates Ownership interests in associates over which Atresmedia Corporación de Medios de Comunicación, S.A. or its subsidiaries do not exercise control, but have the capacity to exercise significant influence in their management, normally through agreements with other shareholders, were accounted for in the consolidated financial statements using the equity method. Under the equity method of accounting, the investment is recognised at cost, including any goodwill arising on the acquisition, and is subsequently adjusted on the basis of the changes in its equity, in proportion to the Group's share of ownership. The Group’s share of the profit and loss of these companies is recognised, net of the related tax effect, under “Share of profit/(loss) of associates” in the consolidated statement of profit or loss, and any dividends received from these companies are deducted from the value of the investment. Associates: Company name Registered address Year incorporated Activity Owner 2017 % I3 Televisión, S.L. Madrid 2005 Provision of IT services Atresmedia Corporación de Medios de Comunicación, S.A. 50 Atres Hub Factory, S.L. Barcelona 2015 Creation of digital businesses Atresmedia Corporación de Medios de Comunicación, S.A. 50 Aunia Publicidad Interactiva, S.L. Madrid 2013 Online advertising management Atres Advertising, S.L.U. 50 Hola Televisión América, S.L. Madrid 2011 Audiovisual communication services Atresmedia Corporación de Medios de Comunicación, S.A. 50 Hola TV Latam, S.L. Madrid 2013 Audiovisual communication services Hola Televisión América, S.L. 100 Hola TV US, LLC Miami 2013 Audiovisual communication services Hola TV Latam, S.L. 100 Changes in the scope of consolidation and main transactions in 2017 - On 25 January 2017, Atresmedia Corporación de Medios de Comunicación, S.A. investee Hola Televisión América, S.L. acquired a 25% stake in its subsidiary Hola Televisión Latam, S.L. This gave the Group 50% ownership of Hola Televisión Latam, S.L. And its subsidiary Hola TV US, LLC. The transaction had a negative impact on equity of EUR 2,468 thousand (see Note 8). - On 21 February 2017, Atresmedia Corporación de Medios de Comunicación, S.A. acquired shares representing 10% of the share capital of subsidiary Atresmedia Foto, S.L. for EUR 6 thousand. After this transaction, the interest held in this subsidiary increased to 100%. - On 3 July 2017, the deed for purchase by subsidiary Atres Advertising, S.L.U. of 170,645 shares of Smartclip Latam, S.L., representing 94.82% of its share capital, was placed on public record. On the same date, the Group entered into a call option with the acquiree's non-controlling shareholders for all of their shares, which represent a 5.18% stake, and the non-controlling shareholders of its subsidiary, Smartclip Comunicacao Ltda, for shares representing 24.16% of its share capital. The amount of the consideration transferred at the acquisition date, including contingent consideration, was EUR 17,665 thousand. Given the nature of these agreements, the company was fully consolidated (see Note 4). - On 1 June 2017, Atresmedia Corporación de Medios de Comunicación, S.A., as sole shareholder of Atres Advertising, S.L. Unipersonal and Guadiana Producciones, S.A. Unipersonal, drew up and signed the Common Terms of Merger for the merger by absorption of Guadiana Producciones, S.A. Unipersonal (absorbed company) by Atres