Impresa — Annual Report 2022

Mar 9, 2023

CONTENTS

1. HIGHLIGHTS	3
1.1. IMPRESA Brands	4
2. CONSOLIDATED ACCOUNTS	5
2.1. Income Statement	5
2.2. Indebtedness	6
3. SEGMENTS	7
3.1. Television	7
3.2. Publishing	9
3.3. Other	10
4. IMPRESA GROUP SECURITIES	11
4.1. IMPRESA Shares	11
4.2. SIC Bonds	11
5. AWARDS	12
6. OUTLOOK	13

IMPRESA's EBITDA, adjusted for restructuring costs, reached €19.1 M

Net Income was positive at €1.1 M Net debt fell €31.4 M to €107.2 M SIC celebrated its fourth consecutive year as audience leader with a 17.1% share The EXPRESSO was the best-selling newspaper for the sixth consecutive year

1. HIGHLIGHTS

IMPRESA recorded a positive net income of €1.1 M, compared with €12.6 M achieved in 2021.

The Group's EBITDA came to €16.8 M, a 45.5% reduction in relation to 2021. EBITDA, after adjusting for restructuring costs, came to €19.1 M, a decrease of 38% in relation to 2021.

The IMPRESA Group's total revenues reached €185.2 M, reflecting a year-on-year decrease of 2.6%. This was the second-best result, in terms of turnover, of the last 5 years. Advertising revenues, on the other hand, representing the largest portion of the IMPRESA's revenues, grew 0.2%.

Operating costs increased 5.7%, mainly as a result of the response to the cyber-attack suffered in January 2022, increased production and energy costs, coverage of the war in Ukraine, increased competitiveness of SIC's programming grids and severance payments.

IMPRESA's net remunerated debt fell €31.4 M year-on-year to €107.2 M.

1.1. IMPRESA Brands

• SIC maintained audience leadership in 2022, in the universe of generalist channels, with an average share of 17.1% in terms of consolidated data.
• SIC's generalist and thematic channels, as a whole, closed the year with a market share of 20.8% and leading in the commercial targets - A/B C D 15/54 and A/B C D 25/54.
• SIC represented 48.3% of the market share of advertising investment among generalist channels.
• SIC's websites recorded the highest ever monthly average visits, with a digital reach of more than 3.2 million Unique Visitors.

• The quality of OPTO's catalogue was recognised internationally: "A Generala" and "O Clube" won the silver medal in the "Streaming" category of the New York Festivals - TV & Film Awards. The series "PRAXX" was acquired by Prime Video. OPTO reached the milestone of 22,000 paid subscribers.

• The Expresso continued to be the bestselling newspaper in Portugal, with an average of 94 thousand copies sold per edition, according to data from the APCT, with reference to the period covering January to December 2022.

• The Expresso led newsstand sales, with an average of almost 45,000 copies, and also digital sales, which exceeded the average of 47,000 copies.
• The universe of websites of the EXPRESSO brand registered an average monthly reach of over 2.6 million Unique Visitors in 2022.
• The Group's focus on audio resulted in the launch of 9 podcasts in 2022, which quickly won over listeners. The podcasts with the highest volume of downloads during the year include: "Programa Cujo Nome Estamos Legalmente Impedidos de Dizer" (4M), "Expresso da Manhã" (2M), "Eixo do Mal" (2M), "Deixar o Mundo Melhor" (1M) and "A Noite da Má Língua" (0.9M).

2. CONSOLIDATED ACCOUNTS 2.1. Income Statement

(Values in M€)	2022	2021	var %
Total Revenues	185.2	190.2	-2.6%
Television	159.9	165.0	-3.1%
Publishing	24.4	23.8	2.5%
Infoportugal	1.2	1.6	-23.8%
Intersegments & Others	-0.3	-0.2	-28.0%
Operating Costs (1)	168.5	159.4	5.7%
Total EBITDA	16.8	30.8	-45.5%
EBITDA Margin	9.1%	16.2%
Total EBITDA (2)	19.1	30.8	-38.0%
EBITDA Margin (2)	10.3%	16.2%
Depreciation	4.8	5.1	-5.9%
EBIT	12.0	25.7	-53.4%
EBIT Margin	6.5%	13.5%
Financial Results	-8.7	-8.3	-4.8%
Provisions	0.2	0.1	100.0%
Res. Bef Taxes & Minorities	3.1	17.3	-82.2%
Income Tax (IRC)(-)	2.0	4.7	-57.4%
Net Profit	1.1	12.6	-91.5%

Notes:

EBITDA = Operating Results + Amortisation and Depreciation + Provisions + Impairment in non-current assets.

(1) Does not consider Amortisation and Depreciation, Provisions and Impairment Losses on non-current assets.

(2) EBITDA adjusted for restructuring costs.

In 2022, IMPRESA reached consolidated revenues of €185.2 M, which represented a year-on-year decrease of 2.6%.

Operating costs, without considering amortisation, depreciation, provisions and impairment losses on non-current assets, increased 5.7%.

Consolidated EBITDA was positive by €16.8 M, representing a year-on-year decrease of 45.5%.

Consolidated EBITDA, adjusted for restructuring costs, was positive by €19.1 M, representing a year-on-year decrease of 38%.

Net income at the end of 2022 was positive by €1.1 M.

2.2. Indebtedness

(values in M€)	2022	2021	var %
Net Debt (M€)	107.2	138.6	-22.6%

With regards to indebtedness figures, there was a 22.6% decrease in net remunerated debt, which represents a year-on-year reduction of €31.4 M, having closed 2022 at €107.2 M.

3. SEGMENTS 3.1. Television

(values in M€)	2022	2021	var %
Revenues	159.9	165.0	-3.1%
Operating Costs (1)	142.8	136.3	4.8%
EBITDA	17.1	28.7	-40.4%
EBITDA Margin (%)	10.7%	17.4%
EBITDA (2)	18.1	28.7	-37.1%
EBITDA Margin (2) (%)	11.3%	17.4%

Notes:

EBITDA = Operating Results + Amortisation and Depreciation + Provisions + Impairment in non-current assets.

(1) Does not consider Amortisation and Depreciation, Provisions and Impairment Losses on non-current assets.

(2) EBITDA adjusted for restructuring costs.

In 2022, SIC reached total revenues of €159.9 M, a decrease of 3.1%, even though this was the second-best result, in terms of turnover, since 2016.

Operating costs increased 4.8%, with this deviation being mostly justified by the costs of covering the war in Ukraine and the cyber attack that the IMPRESA Group was the target of at the beginning of the year. In addition, there is the increase in energy costs and those resulting from the increased competitiveness of the programming grid.

SIC's EBITDA, calculated in 2022, reached €17.1 M, while EBITDA adjusted for restructuring costs came to €18.1 M.

Audiences

SIC ended 2020 as audience leader in the universe of generalist channels, having reached an average share of 17.1% in terms of consolidated data. In the commercial targets – A/B C D 15/54 and A/B C D 25/54 – SIC also conquered the leading position in the universe of generalist channels, with shares of 13.1% and 13.0%, respectively.

In addition to leadership in the daily total, SIC maintained the first position in prime time and reached, in the universe of generalist channels, an average share of 19.5%, in terms of consolidated data.

The good performance of the various fiction products broadcast by SIC in prime time and the weekend entertainment programmes contributed to this result.

SIC remained unbeatable in the day time, leading in the morning period (between 8am and 2pm) with a 17.7% share. The programme "Casa Feliz" was the most watched on weekday mornings. The channel also stood out in the afternoon period (between 14h and 20h) with a 16.3% share.

In terms of information, "Primeiro Jornal" and "Jornal da Noite" were the most watched throughout the seven days of the week. This success is also attributed to the different items broadcast throughout the year, such as "Guerra Fria", "Opinião de Luís Marques Mendes", "Polígrafo SIC", "Essencial", "Grande Reportagem" and "Reportagem Especial".

SIC's generalist and thematic channels ended 2022 with a market share of 20.8%.

In the commercial targets (A/B C D 15/54 and A/B C D 25/54), SIC's universe of channels was the most watched with a share of 17.6% and 17.8%, respectively.

Subscription channels reached a market share of 3.8%, which represents an increase of 0.2 percentage points in relation to 2021.

SIC Notícias registered its best result since the implementation of the Gfk/CAEM audience measurement panel, reaching a market share of 2.3%, which translates into an increase of 0.2 percentage points in relation to 2021.

SIC Mulher ended the year with a share of 0.7%, SIC Radical of 0.3%, SIC Caras of 0.3% and SIC K of 0.2%.

In 2022, SIC brand websites achieved a new record with the best year ever with regard to the average monthly number of Unique Visitors: 3.2 million. This figure represents a year-on-year growth of 21.3% in terms of maximum coverage. It should be noted that both semesters of 2022 represented the best results ever achieved by the SIC brand in terms of digital formats.

3.2. Publishing

(values in M€)	2022	2021	var %
Total Revenues	24.4	23.8	2.5%
Operating Costs (1)	22.0	20.1	9.5%
EBITDA	2.3	3.7	-37.8%
EBITDA Margin (%)	9.4%	15.5%
EBITDA (2)	3.2	3.7	-13.8%
EBITDA Margin (2) (%)	13.1%	15.6%

Notes:

EBITDA = Operating Results + Amortisation and Depreciation + Provisions + Impairment in non-current assets. (1) Does not consider Amortisation and Depreciation, Provisions and Impairment Losses on non-current assets.

(2) EBITDA adjusted for restructuring costs.

Impresa Publishing reached total revenues of €24.4 M, reflecting a growth of 2.5%, the best result since 2017.

With regard to costs, there was an increase of 9.5% due to the increase in the price of paper of the Expresso newspaper, the cyber-attack and the news coverage of the war in Ukraine.

The increase in revenues and operating costs resulted in a positive EBITDA of €2.3 M, representing a reduction of €1.4 M compared to that recorded in the 2021 accounts.

EBITDA, after adjusting for restructuring costs, came to €3.2 M, representing a yearon-year decrease of €0.5 M.

3.3. Other

2022	2021	var %
0.9	1.4	-31.8%
1.2	1.6	-23.8%
-0.3	-0.2	-28.0%
3.5	2.9	19.1%
-2.5	-1.5	-64.8%
-2.2	-1.5	-42.8%

Notes:

EBITDA = Operating Results + Amortisation and Depreciation + Provisions + Impairment in non-current assets. (1) Does not consider Amortisation and Depreciation, Provisions and Impairment Losses on non-current assets. (2) EBITDA adjusted for restructuring costs.

Infoportugal achieved operating revenues of €1.2 M, representing a decrease of 23.8% relative to 2021.

In terms of consolidated results, the EBITDA of this segment was negative, in the amount of €2.5 M and of €2.2 M, after adjusting for restructuring costs.

4. IMPRESA GROUP SECURITIES 4.1. IMPRESA Shares

Evolution of the IMPRESA share price and the PSI Index in 2022

Data: Euronext

The year 2022 was marked by a general fall in equity markets and volatility in the world's main stock markets, triggered by the war in Ukraine, inflationary pressures and tightening of monetary policies. The European Stoxx 600 ended the year down 12.9% and the Euro Stoxx Media index, which tracks the media sector in Europe, fell 8.8%, compared to the close of 2021. Conversely, the PSI rose 2.8%.

The IMPRESA share ended 2022 down 37.3% relative to the end of 2021. Transaction volumes registered a year-onyear decrease of 45%, reflecting an average of 145.7 thousand shares traded per session, between January and December 2022.

4.2. SIC Bonds

On 11 July 2022, SIC made the final repayment of the SIC Bonds 2019-2022, which were admitted to trading on a regulated market (Euronext Lisbon) on 10 July 2019, thus concluding a first, pioneering operation in the media sector in Portugal.

The SIC Bonds 2021-2025, admitted to trading on a regulated market (Euronext Lisbon) on 11 June 2021, traded above par for most of the year, ranging between 99% and 102.98% throughout 2022.

5. AWARDS

The IMPRESA brands continue to gain the confidence of the public and to be distinguished for their quality and social contribution. The conclusions of the Digital News Report 2022, prepared by Reuters Institute and Oxford University, revealed that SIC and the EXPRESSO are in the top national media organisations whose news content the Portuguese trust the most, with a score of 78% and 74%, respectively. During 2022, the following events were noteworthy:

SIC

SIC, SIC Radical, SIC Mulher, SIC Caras and SIC K won the "Consumer Choice" award in 2022. SIC Notícias was distinguished with the Five Stars Award in the "Information Channel" category.

SIC received once again the Reputation Award attributed by the OnStrategy Consultancy. It was also awarded the Marketeer Award in the "TV - Media" category and the Media Partner of the Year Award for the coverage of the League Cup Final Four. SIC and SIC Notícias were distinguished in the M&P Creativity in Self-Promotion & Innovation in the Media Awards.

The Grand Award in Health Journalism from APIFARMA and the Journalists Club went to the news report "Estado Crítico", The Special Report "Os Maestros das Emoções" was awarded in the Television category, having also received, in 2022, the Prize for "Journalism in the Area of Pain" of the Portuguese Association for the Study of Pain and the Grunenthal Foundation, as well as the Prize in the Audiovisual area awarded by the Portuguese League Against Cancer. The "A Saúde Mental das Crianças e dos Jovens" received the third Journalism Award of the Portuguese Society of Psychiatry and Mental Health. The "O Espaço Entre Nós" was the big winner of the Hearts Able to Build Communication Award, of the Hearts with a Crown Association.

"O Sol, Quando Nasce" received the Journalism Award "Children's Rights in the News", in the Television category. The report "Alentejo, Azeite e Água" won the Gazeta award, also in the Television category. The reports "Líbano" and "À Margem" received honourable mentions at the Human Rights & Integration Journalism Awards.

The soap opera "A Serra", was distinguished with the silver medal in the soap opera category of the 23rd World Media Festival, and received the bronze award in the "Entertainment Special" category of the New York Festivals - TV & Film Awards. The drama series "A Generala" and "O Clube," both from the streaming platform OPTO, took the silver in the "Streaming" category. The Fantastic 2022 Awards awarded the programme "Isto é Gozar com Quem Trabalha" with the Best Entertainment Programme Award.

EXPRESSO

The Expresso was also recognised with the "Consumer's Choice", "Five Stars", M&P Creativity in Self-Promotion & Innovation in the Media, and Marketeer awards, in the "Press - Media" category.

"Nós somos oito mil histórias" was distinguished with an honourable mention in the Print Media category of the Human Rights & Integration Journalism Awards. The report "O cancro não tem sexo" won the Prize of "Journalism in the Area of Pain", second place in the Journalism Awards of the Portuguese Society of Psychiatry and Mental Health, as well as the Prize of the Portuguese League Against Cancer.

The newspaper of the IMPRESA Group won 20 awards at the 24th edition of the European Newspaper Awards - Newspaper Award and Concept, which distinguishes the newspapers with the best design in Europe, with Expresso having been the most awarded Portuguese newspaper.

6. OUTLOOK

The year 2022 marks the beginning of a new period of profound socio-economic transformations whose future consequences remain uncertain. The direct and indirect effects of the war in Ukraine, the changing social dynamics arising from years of confinement, technological developments and changing macroeconomic conditions continue to have an undeniable impact on consumption and organisations.

In strategic terms, last year IMPRESA concluded yet another cycle and, in October, set out to implement a new Plan, to be completed by the end of 2025, which will drive the Group to new heights of relevance, efficiency and profitability. The goal, for the end of 2025, is to achieve a growth of 15 to 20% in turnover. Until then, we intend, for example, to triple the weight of revenue generated by digital activity.

The IMPRESA brands lead and have conquered, year after year, the preference of their viewers and readers, now joined by their listeners. Since 2020, the Group has laid the foundations for its positioning in expanding areas such as streaming, branded content and audio.

Specifically in 2023, IMPRESA will focus on accelerating the development of its activity in the digital environment and the transformation of its work processes and methods. It will respond to the objective of growth in turnover and improvement in the operating margin with new sources of income and continuous investment in efficiency and in quality, competitiveness and diversification of the offer of contents in its multiple channels.

The many challenges that the Group has faced have only been overcome through the excellence and commitment of its teams, together with the trust that IMPRESA's stakeholders continue to place in our work. We leave, especially this year, a word of thanks to all.

We believe that together we can drive our passion for the media business further.

Lisbon, 9 March 2023 On behalf of the Board of Directors

Cristina Barroso Paulo Miguel dos Reis Dir. Management Control and Strategic Execution Director Representative for Market Relations