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 32 Thousands of euros Consideration paid in cash 14,975 Contingent consideration 2,690 (+) Consideration transferred 17,665 Intangible assets “Commercial support agreements and relations” 2,390 Other intangible assets 129 Property, plant and equipment 312 Deferred tax assets 1,160 Inventories 12 Trade and other receivables 14,917 Other financial assets 109 Other non-financial assets 100 Cash and cash equivalents 6,107 Deferred tax liabilities -598 Provisions -8,113 Borrowings -29 Trade and other payables -11,716 Other non-financial liabilities -326 (-) Fair value of net assets 4,454 Goodwill 13,211 The intangible asset “Commercial support agreements and relations” was measured by an independent expert using the Multiperiod Excess Earning Method (MEEM) approach, whereby the value of the asset is estimated as the present value of sum of the future “excess earnings” attributable to the customer base, less contributory assets. The fair value of trade and other receivables includes an impairment loss of EUR 159 thousand. Smartclip Latam, S.L. and its subsidiaries, Smartclip Hispania, S.L., Smartclip Comunicacao Ltda and Smartclip Mexico S.A.P.I., will be fully consolidated and included in the Group’s scope of consolidation from the acquisition date. Had the acquisition been carried out on 1 January 2017, the Group's net revenue and profit for 2017 would have been approximately EUR 1,064,678 thousand and EUR 143,692 thousand, respectively. 5. Goodwill Changes in goodwill in the consolidated balance sheets in 2017 and 2016: Thousands of euros Balance at 31/12/15 Balance at 31/12/16 Additions Disposals Balance at 31/12/17 RADIO BUSINESS: Uniprex, S.A.U. 148,113 148,113 - 148,113 Canal Media Radio, S.L.U. 1,899 1,899 - 1,899 OTHER BUSINESSES: Smartclip Group (Note 4) - - 13,211 13,211 TOTAL 150,012 150,012 13,211 163,223 The addition recorded in 2017 arose from the acquisition of Smartclip Group (see Note 4). The goodwill generated was assigned to the “Smartclip” CGU under “Other businesses”. The Group periodically assesses the recoverability of the goodwill described in the foregoing table, considering the CGUs on the basis of the business activities of its subsidiaries, which at year-end were the radio business and other businesses. The Group uses the strategic plans of the various businesses to calculate any possible impairment losses and discounts expected future cash flows. The Group prepares the various projections individually, taking into account the expected future cash flows of each CGU.