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 39 10. Programme rights Breakdown of programme rights: At 31 December 2017, the Parent had commitments, mainly for the purchase of audiovisual property rights and the production of programmes, amounting to EUR 142,865 thousand (2016: EUR 184,087 thousand). In addition, the Parent has purchase commitments to distributors, the definitive amount and price of which will be determined once the programmes are produced and, in certain cases, by establishing the acquisition price on the basis of box-office takings. The best estimate of these commitments in 2017 amounted to EUR 78,082 thousand (2016: EUR 153,179 thousand). Inventoriable in-house productions are expected to be amortised in full and approximately EUR 159,000 thousand of external production rights will be amortised in 2018. Changes in write-downs of external production rights included under “Programme rights” in the consolidated balance sheet (in thousands of euros): The write-downs recognised arose as a result of the decision, based on estimates made by the Parent, that certain titles would not be marketable and it was not likely that they would form part of the Parent’s programme schedule. The changes are reflected in “Programme amortisation and other procurements” in the consolidated statement of profit or loss. Thousands of euros 2017 2016 Programme rights, net Rights on external productions 343,754 356,954 In-house productions and productions in progress 37,736 33,181 Sports broadcasting rights 17,100 16,788 Write-down of external productions (35,759) (36,814) 362,831 370,109 Advances to suppliers 24,049 22,341 Total 386,880 392,450 Balance at 1/1/17 Additions Transfers Disposals or reductions Balance at 31/12/17 Write-downs (36,814) (755) - 1,810 (35,759) Balance at 1/1/16 Additions Transfers Disposals or reductions Balance at 12/31/16 Write-downs (35,545) (1,701) - 432 (36,814)