Mediawan: Strong Performance over the First Half of 2018, Annual Targets Reaffirmed

• Integration of acquired companies and structuring of the Group based on 4 core businesses with strengthened cross-business functions
• Revenues of €125 m and EBITDA of €30 m, strong growth compared to first half of 2017
• Numerous developments across all Group activities, with a substantial increase of ongoing productions' volumes
• 2018 targets reaffirmed

Regulatory News:

Mediawan (Ticker: MDW ISIN: FR0013247137) (Paris:MDW), an independent European audiovisual content platform, announces its results for the first half of 2018, approved by the Supervisory Board on September 26 and subjected to a limited review by the statutory auditors.

Key reported financial indicators

		H1 2018		H1 20171				Change
In €m		(6 months)		(3 months)		(6 months)		(vs. 6 months)
Mediawan Originals		47.3		4.6		20.8		+127%
Mediawan Animation
Mediawan Rights		23.2		6.7		11.8		+97%
Mediawan Thematics		54.4		27.2		54.2		+1%
Revenues2		125.3		38.6		86.8		+44%
EBITDA3		30.0		10.8		21.9		+37%
In €m		30/06/18		31/12/17		30/06/17
Net financial debt4		112.6		28.5		32.0
Shareholders' equity		192.6		209.1		210.2

Pierre-Antoine Capton, Mediawan's Chairman, says: "Mediawan recorded a great semester and delivered solid financial performances. These results reinforce our strategy based on premium content and give us confidence in our ability to deliver our medium-term growth objectives. It is also to undertake the next steps of its development that the Group has integrated a new organization based on 4 core businesses with strengthened cross-business functions".

Finalization of the previously-announced external growth operations

During the first half of the year, Mediawan pursued its consolidation's strategy through the integration of:

• 80% of Storia Television, created to acquire EuropaCorp Télévision's activities (excluding US series) operation finalized in January 2018;
• 77% of Makever, one of France's leading producers gathering 7 independent studios operation carried out in March 2018;
• 51% of ON Entertainment, developing both animated content with ON kids family and fiction with Chapter 2 operation completed on June 7, 2018;
• 60% of Mon Voisin Productions an operation currently being finalized.

These companies are perfectly in line with Mediawan's strategic objectives: premium content with recognized and very identifiable brands, high value catalogue supported by the Group's international network, substantial growth prospects and, most importantly, a pool of exceptionally talented people.

New Group organization incorporating expertise within four core businesses

The acquisitions undertaken by Mediawan have enabled the Group to build a solid asset base with strong positions on complementary business lines. In order to continue the development of these activities in a strategically integrated manner and facilitate the implementation of synergies, Mediawan has adopted a new organization which better reflects both the specificity and offer of a Group that is integrated throughout the whole value chain of audiovisual content.

Mediawan is thus now structured around 4 core businesses:

• Mediawan Originals: production of original content, fiction and documentaries,
• Mediawan Animation: production and management of animated content,
• Mediawan Rights: distribution of audiovisual programs,
• Mediawan Thematics: publishing of channels and associated digital services.

These four core businesses are managed independently, each headed by its own specific team. They are complementary by nature with numerous areas of cooperation. Mediawan's goal is to ensure that these business units are supported by a strengthened Group structure which will develop and incorporate cross-business expertise in various operational and functional sectors.

Numerous developments across all Group activities

Over the first half of the year, Mediawan significantly increased its volume of productions in all areas, and notably fiction and animated content.

• Mediawan Originals produced almost 70 hours (cumulative volume) of fiction prime-time broadcasted on television over the last 12 months, and was awarded number 1 prime time fiction producers in France in the annual ranking published by Écran Total magazine.

During the semester, Mediawan Originals confirmed the success of its programs such as "The Red Bracelets" (Les Bracelets Rouges), "Research Unit" (Section de Recherches), "Alice Nevers" (Alice Nevers, le juge est une femme) and "Captain Sharif" (Cherif), each screening being watched by millions of TV viewers.

The Group has also successfully launched new programs as "The Crimson Rivers" (Les Rivières Pourpres), "Traqués" and "Noces Rouges", and also co-produced "I Am Not as Easy Man" (Je ne suis pas un homme facile), the first 'Netflix Original' French film, broadcasted on the platform since early April.

• Mediawan Rights has also strengthened its positions with a number of noteworthy agreements, such as the sale of French rights of "Babylon Berlin" (16x45') to Groupe Canal+, the series currently broadcasted and the distribution of the series "Murders At…" and "Research Unit" (Section de Recherches) seasons 1 to 7 to NBC Universal Europe.

The Group has also signed an agreement with Amazon which allows its platform Prime Video to stream on French spoken European territories "Research Unit" (Section de Recherches), "Alice Nevers" (Alice Nevers, le juge est une femme) and "Les Mystères de l'Amour

• Mediawan Thematics has continued to implement its strategy aimed at strengthening its portfolio of channels, notably with a trademark agreement leading to the upcoming launch of the new AUTOMOTO TV channel (replacing AB Moteurs), and working on partnership to develop a new eSport offer.

The Group has also recorded outstanding audiences figures in Belgium with AB3 and ABxplore (recently launched), increasing the Group's position on such market.

• Mediawan Animation is accelerating its development strategy on both TV series and feature films. Numerous major projects are currently in production, notably the "Power Players" series and the "Playmobil" movie.

The "Miraculous" phenomenon carries on with the ongoing delivery of new episodes of seasons 2 and 3 and the development of seasons 4 and 5. Many other projects are also being looked at to use this worldwide-recognized intellectual property on other formats.

Changes in governance

The General Shareholders' Meeting held on June 5, 2018 approved the appointment of Mrs. Anne Le Lorier, Second Deputy Governor of the Banque de France until January of this year, as a member of the Supervisory Board.

Furthermore, Mediawan's Supervisory Board appointed:

• Guillaume Izabel, CFO of Mediawan since June 2017, as a member of the Management Board,
• Stanislas Subra, Head of the Alternative Investment Fund division at the MACSF insurance company, as censor of the Supervisory Board.

Solid revenues growth of +44% to €125 million⁵

Revenues totaled €125.3 million in the first half of 2018, up +44% on the pro forma revenues published in the first half of 2017⁴. This growth was mainly due to the contribution of the CC&C, Storia and Makever acquisitions, which were not part of the consolidated scope in the first half of 2017.

• Mediawan Originals recorded revenues of €47.3 million at June 30, 2018, up sharply compared with the same half of 2017 notably thanks to the contribution of the newly-acquired companies. Revenues primarily corresponded to the delivery of new programs to broadcasters and income from secondary sales of programs produced by the Group (net of distribution fees). Mediawan Originals delivered almost 40 hours of programs over the half, 34 of them in the second quarter, and strengthened its production line-up by signing new seasons of a number of successful series including "Black Spot" (Zone Blanche) and "The Red Bracelets" (Les Bracelets Rouges)
• Mediawan Animation recorded no revenues during the first half of the year: the acquisition of ON kids family having been carried out in June 2018, its activity was only consolidated in Mediawan's accounts from June 30, 2018.
• Mediawan Rights recorded revenues of €23.2 million, a substantial increase on the previous year, notably because of a more concentrated rights entitlement schedule in this first half. Revenue essentially came from (i) sales of rights acquired by the Group and (ii) distribution fees levied when rights produced by production companies or third parties are sold.
• Mediawan Thematics recorded revenues of €54.4 million, a slight improvement on the first half of 2017. Revenues primarily consisted of royalties from TV operators and advertising income.

EBITDA⁶ in excess of €30 million and net profit of €11 million despite exceptional items

EBITDA totaled €30.0 million over the first half of 2018, giving a margin of close to 24%. This high margin was mainly due to the substantial contribution of Mediawan Rights' activity over the half.

The reported operating profit was €12.8 million, primarily affected by:

• -€3.6 million of non-recurring expenses associated with acquisition and reorganization costs;
• the accounting impact, with no impact on the Group's cash position, of elements similar to remuneration elements under IFRS to the tune of €(1.0) million;
• amortization of the goodwill allocated to tangible and intangible fixed assets, for (10.7) million.

There was a net profit of €11.3 million in the first half of 2018, derived from the operating profit and taking into account (i) a financial result of €2.2 million including the change in the fair value of non-consolidated equity interests for €3.5 million, (ii) tax of €(3.2) million and (iii) €(0.4) million in minority interests.

Net profit group share adjusted for the amortization of assets acquired through business combinations (net of tax) was €18.2 million.

A solid capital structure

The change in shareholders' equity, group share, from €209.1 million at December 31, 2017 to €192.6 million at June 30, 2018 was chiefly the result of (i) the net profit of €11.3 million, (ii) capital increases following the exercise of warrants for €10.3 million and (iii) the non-monetary impact associated with the writing down of minority interest purchase commitments for (40.6) million.

At June 30, 2018, the Group's net financial debt was €(112.6) million, versus €(28.5) million at December 31, 2017, the increase in debt over the period being principally due to the impact of the Group's acquisitions for close to €100 million.

2018 targets reaffirmed

Mediawan reminds readers that its revenues and results are notably correlated to the number and delivery schedule of audiovisual programs and the dates of rights entitlements. These factors can result in significant variations in the Group's results from one period to the next; consolidated half-year results are therefore not indicative of future annual results.

As far as Mediawan Originals and Mediawan Animation's activities are concerned, substantial volumes of work are currently in production and should be delivered over the coming months. Uncertainty regarding precise delivery dates and their proximity to the end of the 2018 financial year are liable to have an impact on Mediawan's consolidated results for the current year.

However, the continuation of Mediawan's growth strategy, with numerous clearly-identified levers including a substantial production line-up, bolsters the Group's good 2018 prospects. Management is therefore reaffirming the growth and margin targets on a pro forma basis.

First half financial report is available on: https://mediawan.fr/fr/regulated-information/

Next financial press release: Q3 2018 revenues, end-November 2018.

Disclaimer

This document may contain forward-looking statements. Although Mediawan believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ. As a result, you should not rely on these forward-looking statements. Mediawan undertakes no obligation to update or revise any forward-looking statements in the future or to adjust them in line with future events or developments, except to the extent required by law.

About Mediawan

Mediawan was incorporated in December 2015 as a Special Purpose Acquisition Company (SPAC) by Pierre-Antoine Capton, Xavier Niel and Matthieu Pigasse, and the following year raised €250 million through an IPO on the Euronext regulated market in Paris. Mediawan has carried out 7 strategic acquisitions since March 2017, thus consolidating a new independent player in audiovisual content with a leading position in Europe. The Group operates on 4 segments: the production of original fiction and documentary content, the running of animated brands, the distribution of audiovisual content and the publishing of channels and digital services.

For further information, please visit the Mediawan website: www.mediawan.fr

APPENDIXES

1. Consolidated balance sheet at June 30, 2018 and December 31, 2017

In thousands		30-june-18		31-dec-17
Intangible assets		319 636		209 378
Goodwill		180 078		96 401
Property, plant and equipment		19 721		18 462
Other non-current financial assets		829		2 144
Deferred tax assets		12 288		2 390
Non-current assets		532 552		328 777
Inventories and work-in-progress		1 604		2 008
Trade receivables		91 639		46 938
Other receivables		50 441		14 903
Current tax receivables		3 494		1 094
Cash and cash equivalents		60 535		82 478
Current assets		207 714		147 422
Total assets		740 266		476 198
Share capital		293		284
Share premium		226 442		216 181
Treasury shares		(43)		(65)
Other reserves		(37 909)		209
Retained earnings (deficit)		3 844		(7 497)
Equity attributable to owners of the Company		192 627		209 113
Equity attributable to non-controlling interests		674		597
Equity		193 301		209 710
Long-term borrowings and other non-current fin. liab.		147 219		95 080
Other financial liabilities		47 148
Employee benefit obligations		3 477		3 113
Long-term provisions		6 135		7 947
Deferred tax liabilities		43 979		42 216
Non-current liabilities		247 958		148 355
Short-term borrowings and other current fin. liab.		58 238		15 949
Short-term provisions		375		365
Trade and other operating payables		125 805		76 431
Other payables and accrued expenses		112 690		23 177
Current tax liabilities		1 901		2 212
Current liabilities		299 007		118 133
Total Equity and liabilities		740 266		476 198

2. Consolidated income statement period from January 1 to June 30, 2018 and January 1 to June 30, 2017

In thousands		H1 2018		H1 2017
Revenues		125 347		38 597
Other products		40 823		8 432
Purchases and external expenses		(33 480)		(11 802)
Personnel expenses		(35 013)		(10 029)
Other expenses		(13 272)		(3 977)
Depreciation and provisions, net		(54 374)		(10 999)
Other depreciation (excl. audiovisual rights)		(1 901)		(980)
Other operating income and expenses		(4 654)		(6 371)
Amortization of assets recognized through bus. combinations		(10 661)		(6 967)
EBIT		12 815		(4 096)
Cost of net financial debt		(2 484)		(1 312)
Other financial income and expenses		4 634		(49)
Net financial income (expense)		2 150		(1 361)
Pre-tax income (loss)		14 965		(5 457)
Current and deferred tax (expense) benefit		(3 182)		(1)
Profit (loss) after tax		11 783		(5 458)
Income from equity affiliates		(37)
Income from activities held for sale or discontinued
Net income (loss)		11 746		(5 458)
Net income (loss), Group share		11 341		(5 767)
Minority interests		405		309
Basic earnings (loss) per share attributable to owners (in €)		0,399		(0,190)
Diluted earnings (loss) per share (in €)		0,385		(0,190)

3. Evolution of EBITDA, Group's key performance indicator

In thousands		H1 2018		H1 2017
EBIT*		12 815		(4 096)
Amortization of assets recognized through bus. combinations*		10 661		6 967
Other operating income and expenses*		4 654		6 371
Other depreciation (excl. audiovisual rights)*		1 901		980
EBITDA		30 031		10 222

[*]: As presented in consolidated income statement

¹ Financial indicators for the first half of 2017 correspond to the Group's scope of consolidation with Groupe AB only consolidated from April 1, 2017 (3 months) and to the restated scope as if the acquisition of Groupe AB had been finalized on January 1, 2017 (6 months).
² On H1 2018, include a €0.5 m contribution from the corporate center.
³ EBITDA after amortization of audiovisual rights, other than those recognized through business combination.
⁴ Financial debt excluding self-liquidating production loans.
⁵ Growth vs. H1 2017 revenues restated as if the acquisition of Groupe AB had been carried out on January 1, 2017 (6 months).
⁶ EBITDA after amortization of audiovisual rights, other than those recognized through business combination.

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