Impresa — Earnings Release 2018

Oct 29, 2018

IMPRESA

September 2018 Results

IMPRESA – SGPS, S.A. Publicly Held Company Share Capital Eur 84,000,000 Rua Ribeiro Sanches, 65 1200–787 Lisbon NIPC 502 437 464 Commercial Registry Office of Lisbon

Press Release: IMPRESA Accounts of September 20188

1. Main highlights

It should be noted that the accounts of this quarter are compared, up to EBITDA, with the proforma accounts of the same period of 2017 which were prepared by excluding an estimate of income and expenses that would be attributable to the portfolio of magazines sold in 2018 (see chapter 4 below), and considers the impact of IFRS 15 and of IFRS 9, as if these had been applied in 2017.

• In the nine months to September 2018, IMPRESA reached a net profit of 1.4 M€, a strong improvement relative to the same period of 2017, in which net income was negative by 165 thousand euros.
• In the nine months to September 2018, the consolidated EBITDA reached 12.3 M€, a gain of 52.4% in relation to the proforma accounts in the same period of the previous year. In the 3rd quarter of 2018, EBITDA reached 2,1 M€, an increase of 4.3% relative to the proforma accounts of the 3rd quarter of 2017, penalized with higher restructuring charges.
• It is worth highlighting the good performance of SIC in operating terms, having reached an EBITDA of 13.8 M€, which represents an increase of 47.9% relative to the proforma accounts of September 2017. In the 3rd quarter of 2018, EBITDA came to 2.6 M€, representing an increase of 18.7% relative to the proforma accounts of the 3rd quarter of 2017.
• The total revenues of the Group IMPRESA reached 126.2 M€ at the end of September 2018, corresponding to a decrease of 0.7% relative to the proforma accounts in the same period of the previous year, compensated by the fall of 4,3% in operating costs relative to the proforma accounts.
• Net remunerated debt reached 189.6 M€ at the end of September 2018, representing a year-on-year decrease of 3.1 M€.
• SIC ended the nine months to September 2018 with an average share of 16.7%, maintaining its leadership position in both commercial targets (A/B CD 15/54 and A/B CD 25/54) during prime time, with a share of 19.8% and 20.5%, respectively.
• In the nine months to September 2018, SIC Mulher reached a record audience, with a share of 1.1%. SIC Notícias once again stood out as the leading information channel, with a share of 1.9%, and SIC's subscription channels reached a collective market share of 3.8%, 0.1 pp higher year-on-year.
• The month of September was marked by the beginning of the television season, with the debut of the soap opera "Alma Coração" and the Brazilian soap opera "Segundo Sol", during prime time. Sunday nights marked the return of César

Mourão to SIC, with "Terra Nossa". With the onset of October, the debuts continued: "Julia", with a new programme format for the afternoons; the new season of "Vidas Suspensas" and entertainment show "Casados à Primeira Vista"; and the new programme for sunday nights, which also airs on monday to friday in the late afternoon.

• SIC concluded a distribution agreement with Comcast, expanding the coverage of SIC Internacional to the entire territory of the USA, reinforcing its presence in States such as California, Texas, Virginia or Pennsylvania.
• IMPRESA launched the initiative SIC Ventures, which is a Media-for-Equity program, where SIC in exchange for advertising space, will acquire minorities stakes in start-up's. The marketplace Zaask will be the first start-up.
• The EXPRESSO continued to be the best selling newspaper in Portugal, with an average of more than 89 thousand copies sold, according to data from the APCT with reference to the period covering January to June 2018.
• The EXPRESSO is also the leading Portuguese publication in paid digital circulation, selling on average more than 24.5 thousand copies per edition.
• The continued focus on the digital area is reflected in the digital revenues from the advertising and circulation areas, currently representing close to 23.0% of the total turnover of the Publishing area.

Table 1. Main Indicators		Pro-forma (a)				Pro-forma (a)
(Values in €)	set/18	set/17	ch %	set/17	3rd Qt 2018	3rd Qt 2017	ch %	2nd Qt 2017
Total Revenues	126 171 703	127 002 905	-0,7%	146 436 619	39 357 108	40 644 733	-3,2%	47 264 572
Television	105 326 038	108 509 105	-2,9%	111 120 231	32 511 967	34 172 888	-4,9%	35 046 984
Publishing	18 944 907	17 221 985	10,0%	34 044 572	6 221 701	5 961 850	4,4%	11 707 593
InfoPortugal & Others	1 586 152	1 623 798	-2,3%	1 623 798	527 584	527 257	0,1%	527 257
Intersegments	314 606	-351 982	n.a	-351 982	95 856	-17 262	n.a.	-17 262
Operating Costs	113 844 418	118 913 567	-4,3%	137 812 868	37 239 656	38 339 157	-2,9%	44 780 905
EBITDA	12 327 285	8 089 338	52,4%	8 623 750	2 117 453	2 029 296	4,3%	2 483 666
EBITDA Margin	9,8%	6,4%		5,9%	5,4%	5,0%		5,3%
Total EBITDA (2)	13 281 973	9 815 897	35,3%	10 350 325	2 788 662	2 157 238	29,3%	2 611 588
EBITDA Television	13 851 805	9 367 784	47,9%	9 294 981	2 623 925	2 211 120	18,7%	2 186 852
EBITDA Publishing	386 073	601 573	35,8%	1 208 789	67 577	455 157	-85,2%	933 795
EBITDA Infoportugal & Other	-1 910 593	-1 880 020	-1,6%	-1 880 020	-574 049	-636 981	9,9%	-636 981
Net Profit	1 445 222	-	n.a	-165 059	-1 067 941	-	n.a	-250 662

Note: EBITDA = Operating Results + Amortisations and Depreciation + Impairment Losses + Impairment of Non-Current Assets. Net Debt = Loans (ST+MLT) - Cash and Cash Equivalents + Financial Leases. (1) Does not consider Amortisations and Depreciation and Impairment Losses in Non-Current Assets. (a) The proforma accounts of September 2017 were prepared by excluding the income and expenses that are estimated to be attributable to the portfolio of magazines sold in 2018, and consider the impact of the adoption of IFRS 15 and IFRS 9, as if these had been applied in 2017. Net Debt & Leasings (M€) 189,6 192,7 -1,6% 192,7 189,6 192,7 -1,6% 192,7

2. Analysis of the Consolidated Accounts

IMPRESA reached, at the end of September 2018, consolidated revenues of 126.2 M€, which represented a lower turnover (0.7%) relative to the pro-forma accounts of September 2017. The decrease in advertising and circulation revenues were not offset by the increase in other and channel subscription revenues. In the 3rd quarter of 2018, total revenues reached 39.4 M€, representing a decrease of 3.2% relative to the proforma accounts in the same period of the previous year.

Table 2. Total Revenues		Pro-forma (a)				Pro-forma (a)
(Values in €)	set/18	set/17	ch %	set/17	3rd Qt 2018	3rd Qt 2017	ch %	2nd Qt 2017
Total Revenues	126 171 703	127 002 905	-0,7%	146 436 619	39 357 108	40 644 733	-3,2%	47 264 572
Advertising	78 716 782	78 777 210	-0,1%	84 434 739	23 271 584	24 565 769	-5,3%	26 410 336
Channel Subscriptions	29 313 436	29 510 622	-0,7%	32 391 947	9 830 808	9 702 072	1,3%	10 662 514
Circulation	6 966 070	7 210 565	-3,4%	17 492 596	2 357 326	2 547 567	-7,5%	6 247 214
Others	11 175 414	11 504 509	-2,9%	12 117 336	3 897 389	3 829 326	1,8%	3 944 507

In relation to the proforma accounts of the nine months to September 2017, operating costs in the nine months to September 2018, without considering amortisation, depreciation and impairment losses in non-current assets, fell 4.3%. This positive result came about due to a fall in programming costs, less IVR activity, a decrease in personnel costs, as well as lower restructuring costs in 2018. In the 3rd quarter of 2018, the decrease in operating costs came to 2.9%, penalised by the increase in restructuring costs in the quarter.

In the nine months to September 2018, the consolidated EBITDA came to 12.3 M€, a gain of 52.4% in relation to the proforma accounts in the same period of the previous year. In the 3rd quarter of 2018, EBITDA adjusted for restructuring costs came to 2.8 M€, representing an increase of 29.3% relative to the proforma accounts of the 3rd quarter of 2017.

The volume of amortisations increased 2.4% in the nine months to September 2018, reflecting the investment undertaken in the expansion of the IMPRESA building. In the 3rd quarter, the volume of amortisations increased 5.0%.

Negative financial results of 4.5 M€ were achieved, representing a reduction of 14.2% through to the end of September 2018. This improvement is due to the reduction of financial costs and, at the same time, of exchange rate gains obtained during the period under analysis, as well as due to the positive contribution from associated companies' results. In the 3rd quarter of 2018, financial results remained at the same level as in the same period of the previous year.

Net income at the end of September 2018 was positive by 1.4 M€, a strong improvement relative to the losses of 165 thousand euros in the same quarter of the previous year. In the 3rd quarter of 2018, results were negative by 1.1 M€.

In terms of the statement of financial position, at the end of September 2018, net debt, including financial leases, stood at 189.6 M€, i.e. a reduction of 3.1 M€ relative to the same period of 2017. The decrease in debt, at a lower pace, was due to the financing of the project to expand the IMPRESA building, as well as the new studios.

Table 3. Profit & Loss		Pro-forma (a)				Pro-forma (a)
(Values in €)	set/18	set/17	ch %	set/17	3rd Qt 2018	3rd Qt 2017	ch %	2nd Qt 2017
Total Revenues	126 171 703	127 002 905	-0,7%	146 436 619	39 357 108	40 644 733	-3,2%	47 264 572
Television	105 326 038	108 509 105	-2,9%	111 120 231	32 511 967	34 172 888	-4,9%	35 046 984
Publishing	18 944 907	17 221 985	10,0%	34 044 572	6 221 701	5 961 850	4,4%	11 707 593
InfoPortugal	1 586 152	1 623 798	-2,3%	1 623 798	527 584	527 257	0,1%	527 257
Intersegments & Outras	314 606	-351 982	n.a	-351 982	95 856	-17 262	n.a.	-17 262
Operating Costs (1)	113 844 418	118 913 567	-4,3%	137 812 868	37 239 656	38 339 157	-2,9%	44 780 905
Total EBITDA	12 327 285	8 089 338	52,4%	8 623 750	2 117 453	2 029 296	4,3%	2 483 666
EBITDA margin	9,8%	6,4%		5,9%	5,4%	5,0%	0,0%	5,3%
Total EBITDA (2)	13 281 973	9 815 897	35,3%	10 350 325	2 788 662	2 157 238	29,3%	2 611 588
Television	13 851 805	9 367 784	47,9%	9 294 981	2 623 925	2 211 120	18,7%	2 186 852
Publishing	386 073	601 573	-35,8%	1 208 789	67 577	455 157	-85,2%	933 795
Infoportugal & Others	-1 910 593	-1 880 020	-1,6%	-1 880 020	-574 049	-636 981	9,9%	-636 981
Depreciation	2 661 769	2 726 857	2,4%	2 726 857	873 362	918 931	5,0%	918 931
EBIT	9 665 516	5 362 481	80,2%	5 896 893	1 244 091	1 110 365	12,0%	1 564 735
EBIT Margin	7,7%	4,2%		4,0%	3,2%	2,7%	0,0%	3,3%
Financial Results (-)	4 462 993	5 200 984	-14,2%	5 200 984	1 565 745	1 559 935	-0,4%	1 559 935
Res. bef.Taxes & Minorities	5 202 523	161 497	3121,4%	695 909	-321 654	-449 570	28,5%	4 800
Taxes (IRC)(-)	3 757 301	-	n.a	860 969	746 287	-	n.a	255 462
Net Profits	1 445 222	-	n.a.	-165 059	-1 067 941	-	n.a.	-250 662

Note: EBITDA = Operating Results + Amortisations and Depreciation + Impairment of Non-Current Assets. (1) Does not consider Amortisations and Depreciation and Impairment Losses in Non-Current Assets. In the 3rd quarter of 2018, a total of 671.2 thousand euros in compensations was recorded, while in the 3rd quarter of 2017, the amount came to 127.9 thousand euros. In the nine months to September 2018, restructuring costs reached 954.7 thousand euros, in comparison with 1.7 M€ in September 2017 (a) The proforma accounts of September 2017 were prepared by excluding the income and expenses that are estimated to be attributable to the portfolio of magazines sold in 2018, and consider the impact of the adoption of IFRS 15 and IFRS 9, as if these had been applied in 2017.

In June 2018, IMPRESA carried out a financing transaction supported by the IMPRESA building, in Paço de Arcos, through a lease-back operation involving a 10-year period, in which the amount involved in the operation came to 24.2 M€.

3. Television - SIC

Table 4. Television Indicators		Proforma (a)			Proforma (a)
	set/18	set/17	ch %	set/17	3rd Qt 2018	3rd Qt 2017	ch %	2nd Qt 2017
Total Revenues	105 326 038	108 509 105	-2,9%	111 120 231	32 511 967	34 172 888	-4,9%	35 046 984
Advertising	68 641 586	69 495 050	-1,2%	69 495 050	20 021 131	21 327 691	-6,1%	21 327 691
Channel Subscriptions	29 313 436	29 510 622	-0,7%	32 391 947	9 830 808	9 702 072	1,3%	10 662 514
Multimedia	4 580 294	6 604 284	-30,6%
Others	2 790 722	2 899 149	-3,7%	2 899 149	1 052 057	897 028	17,3%	897 028
Operating Costs (1)	91 474 233	99 141 320	-7,7%	101 825 250	29 888 042	31 961 768	-6,5%	32 860 132
EBITDA	13 851 805	9 367 784	47,9%	9 294 981	2 623 925	2 211 120	18,7%	2 186 852
EBITDA (%)	13,2%	8,6%		8,4%	8,1%	6,5%		6,2%
EBITDA Adjusted (2)	14 572 077	10 821 825	34,7%	10 749 022	3 227 814	2 276 562	41,8%	2 252 275

Note: EBITDA = Operating Results + Amortisations and Depreciation + Impairment Losses in Non-Current Assets. (1) Does not consider Amortisations and Depreciation + Impairment Losses in Non-Current Assets SIC incorporated 603.9 thousand euros of restructuring costs in the 3rd quarter of 2018, and 65.4 thousand euros in the 3rd quarter of 2017. In the nine months to September 2018, restructuring costs reached 720.3 thousand euros, in comparison to 1.4 M€ in September 2017. (a) The proforma accounts of September 2017, in the television segment, reflect the impact of the adoption of IFRS 15 and IFRS 9, as if these had been applied in 2017.

At the end of September 2018, SIC achieved total revenues of 105.3 M€, which represented a year-on-year decrease of 2.9%, relative to the proforma accounts of September 2018. The proforma accounts reflect the impact of the adoption of IFRS 15, as if it had occurred in 2017. In the 3rd quarter of 2018, revenues fell 4.9%.

In the nine months to September 2018, advertising revenues reached 68.6 M€, representing a decrease of 1.2% in comparison with the same period of 2017, having benefitted from the World Football Championship. In the 3rd quarter of 2018, advertising revenues fell 6.1%, with the advertising market having contracted following the World Football Championship.

SIC ended the first nine months to September 2018 with an average share of 16.7%, in comparison with 17.4% registered in the same period of the previous year, maintaining its leadership position in both commercial targets (A/B CD 15/54 and A/B CD 25/54) during prime time, amongst generalist channels, with a share of 19.8% and 20.5%, respectively. The good performance of "Jornal da Noite" and of the soap opera "Paixão", as well as the debut in the second quarter of 2018 of the soap opera "Vidas Opostas", leaders in both commercial targets since their debut, contributed to these results.

The month of September was marked by the beginning of the television season, and by various new releases, the soap opera "Alma Coração", which replaced the soap opera "Paixão", and the new Brazilian soap opera "Segundo Sol", during prime time. Sunday nights marked the return of César Mourão to SIC, with "Terra Nossa". With the onset of October, the new releases continued: "Julia", with a new programme format for the

afternoons; the competition "Casados à Primeira Vista"; and the new programme for Sunday nights, which also on the air from Monday to Friday's, in the late afternoon.

SIC's subscription channels reached a market share of 3.8% in the nine months to September 2018, 0.1 pp higher year-on-year, reaching a record value in the 3rd quarter of

1. In this quarter, the global audience reached 4,1%, a record value due to the good performance of the SIC Mulher and SIC K channels.

SIC Notícias once again stood out as the information channel most preferred by the Portuguese, with a share of 1.9%, in the nine months to September 2018. Regarding the other thematic channels, SIC Mulher, SIC Radical, SIC Caras and SIC K increased and obtained, respectively, market shares of 1.1%, of 0.5% and of 0.4% for the remaining channels.

Subscription revenues generated by the 8 SIC channels, distributed over cable and satellite, in Portugal and abroad, fell 0.7% (relative to the proforma accounts) in the nine months to September 2018 to 29.3 M€. This decrease was essentially due to the devaluation of the US dollar, which in turn penalised the foreign contracts. In the 3rd quarter of 2018, subscription revenues increased 1.3% to 9.8 M€.

In the 1st half of 2018, SIC concluded a distribution agreement with Comcast, expanding the coverage of SIC Internacional to the entire territory of the USA, reaching states such as California, Texas, Virginia or Pennsylvania. In September, SIC Internacional Africa and SIC Notícias were once again broadcast in Angolan territory, through the distributor Multichoice.

IVR revenues at the end of September 2018 fell 30.6% to 4.6 M€, as result of the discontinuation of some programmes, namely "A Vida nas Cartas", from September 2017 and "Juntos à Tarde", from the beginning of March 2018. In the 3rd quarter of 2018, IVR revenues fell 28.4%.

Other revenues fell 3.7% to 2.8 M€ in the nine months to September 2018. In the 3rd quarter of 2018, other revenues increased 17.3% to 1.1 M€. The good phase of content sales is noteworthy, with the sale of the novela "Amor Maior", which debuted in September, in Dubai.

In the nine months to September 2018, operating costs, excluding amortisations, depreciation and impairment losses in non-current assets, were reduced by 7.7% relative to the proforma accounts in the same period of the previous year, as a result of the reduction of personnel costs and programming costs - in spite of the investment in World Cup games, and of less IVR activity. This decrease was achieved in spite of the restructuring costs of 0.72 M€. In the 3rd quarter of 2018, operating costs, excluding amortisations, depreciation and impairment losses in non-current assets, fell 6.5% in comparison with the proforma accounts of the same quarter in the previous year.

The reduction in costs permitted the expansion of EBITDA to 13.8 M€ - in spite of the decrease in revenues at the end of September 2018 -, corresponding to an increase of 47.9%. In the 3rd quarter of 2018, EBITDA increased 18.7% to 2.6 M€, and without including the restructuring costs in this last quarter, EBITDA would have reached 3.2 M€, corresponding to an increase of 41.8%.

4. IMPRESA Publishing

Table 5. Publishing Indicators
	set/18	set/17	ch %	set/17	3rd Qt 2018	3rd Qt 2017	ch %	2nd Qt 2017
Total Revenues	18 944 907	17 221 985	10,0%	34 044 572	6 221 701	5 961 850	4,4%	11 707 593
Circulation	6 966 070	7 210 565	-3,4%	17 492 596	2 357 326	2 547 567	-7,5%	6 247 214
Advertising	10 055 072	9 077 382	10,8%	14 734 911	3 240 371	3 188 208	1,6%	5 029 826
Associated Products	454 337	288 332	57,6%	969 918	100 888	58 213	73,3%	236 631
Others	1 469 428	645 705	127,6%	847 147	523 116	167 861	211,6%	193 922
Operating Costs (1)	18 558 834	16 620 411	11,7%	32 835 782	6 154 124	5 506 692	11,8%	10 773 797
EBITDA	386 073	601 573	-35,8%	1 208 789	67 577	455 157	-85,2%	933 795
EBITDA (%)	2,0%	3,5%		3,6%	1,1%	0,0%		8,0%
EBITDA Adjusted (2)	473 066	874 092	-45,9%	1 481 324	134 897	517 657	-73,9%	996 295

Note: EBITDA = Operating Results + Amortisations and Depreciation + Impairment Losses in Non-Current Assets. (1) Does not consider Amortisations and Depreciation and Impairment Losses in Non-Current Assets. In the 3rd quarter of 2018, Publishing incorporated 67 thousand euros of restructuring costs, in comparison with 62.5 thousand euros in the 3rd quarter of 2017. In the nine months to September 2018, restructuring costs reached 86.9 thousand euros, in comparison with 272.5 thousand euros in September 2017. (a) The proforma accounts of September 2017 were prepared by excluding an estimate of income and expenses that would be attributable to the portfolio of magazines sold in 2018.

With the sale of the portfolio of twelve publications and respective brands at the start of 2018, the Publishing segment now includes the following publications/activities: the Expresso, the Blitz (which now only has a digital presence, with special paper editions), the New Media Solutions (which includes Customer Publishing), the Boa Cama Boa Mesa (previously in InfoPortugal) and the commercial management of digital properties not owned by IMPRESA, including, since 2018, the websites Noticias ao Minuto and Zero Zero, in addition to Linkedin, in Portugal, and MSN. The operating results presented herein are compared with the proforma accounts relative to the 3rd quarter of 2017 and the nine months to September 2017.

In the nine months to September 2018, total revenues increased 10.0% relative to the proforma accounts of September 2017 to 18.9 M€. All revenues, with the exception of circulation revenues, contributed to this increase. In the 3rd quarter of 2018, total revenues registered an increase of 4.4%, relative to the proforma accounts in the same period of the previous year, to 6.2 M€.

In the nine months to September 2018, circulation revenues fell 3.4% to 6.9 M€, affected by the closure of the paper edition of Blitz magazine. In these nine months to September 2018, the newspaper Expresso maintained its paid circulation numbers, with the decline in the number of copies sold being offset by the increase in digital sales, representing an increase of 11.3% in the nine months to September 2018. The increase in the cover price of Expresso to 3.80 € during the 2nd quarter of 2018 is noteworthy. The increase of the contribution of digital revenues at the end of September 2018 is also noteworthy, having grown 21.6% in relation to the same period of the previous year, representing 14.5% of total circulation. In the 3rd quarter of 2018, circulation revenues fell 7.5%, relative to the proforma accounts in the same period of the previous year.

Advertising revenues reached 10.0 M€ at the end of September 2018, having increased 10.8%, when compared to the pro-forma figures of the same period of 2017. It is important to point out that the digital segment, which increased about 63.5% in the nine months to September 2018, contributed strongly to these good results. In the 3rd quarter of 2018, total advertising revenues increased 1.6%.

The sales of brand extension products reached 454 thousand euros in the nine months to the end of September 2018, representing a gain of 57.6% in comparison to the proforma accounts of September 2017, with the contribution of the guides Boa Cama Boa Mesa and books of the Expresso collection. In the 3rd quarter of 2018, brand extension product revenues reached 100 thousand euros, an increase of 73.3% relative to the proforma accounts of the 3rd quarter of 2017.

Other revenues increased 127.6% in the nine months to September 2018, boosted by the contribution of the New Media Solutions unit. In the 3rd quarter of 2018, these revenues increased 211.6% to 523 thousand euros.

The new activities included in this segment led to an increase of 11.7% in operating costs at the end of September 2018, in line with the growth of revenues. In the 3rd quarter of 2018, operating costs increased 11.8%.

Consequently, in the nine months to September 2018, the combined performance of operating revenues and costs, excluding amortisations, depreciation and impairment losses in non-current assets, resulted in an EBITDA of 386 thousand euros, representing a decrease of 35.8% relative to the proforma accounts of September 2017. In the 3rd quarter of 2018, EBITDA reached 67 thousand euros.

5. IMPRESA Other

Table 6. IMPRESA Others Indicators		Pro-forma (a)		Pro-forma (a)
	set/18	set/17	ch %	set/17	3rd Qt 2018	3rd Qt 2017	ch %	2nd Qt 2017
Total Revenues	1 900 758	1 271 816	49,5%	1 271 816	623 440	509 995	22,2%	509 995
InfoPortugal	1 586 152	1 623 798	-2,3%	1 623 798	527 584	527 257	0,1%	527 257
Intersegments & Others	314 606	-351 982	n.a.	-351 982	95 856	-17 262	n.a.	-17 262
Operating Costs (1)	3 811 351	3 151 836	20,9%	3 151 836	1 197 490	1 146 976	4,4%	1 146 976
EBITDA	-1 910 593	-1 880 020	-1,6%	-1 880 020	-574 049	-636 981	9,9%	-636 981
EBITDA Adjusted (2)	-1 763 170	-1 880 020	6,2%	-1 880 020	-574 049	-636 981	9,9%	-636 981

Note: EBITDA = Operating Results + Amortisations and Depreciation + Impairment Losses in Non-Current Assets. (1) Does not consider Amortisations and Depreciation and Impairment Losses in Non-Current Assets. The proforma accounts of September 2017, in the Others segment, reflect the impact of the adoption of IFRS 15 and IFRS 9, as if these had been applied in 2017. Up to September 2018, 147 thousand euros of restructuring costs have been recorded.

This segment includes the management and financial costs of the IMPRESA holding and also includes the operating activities of Infoportugal, a company dedicated to information technologies and content production, namely aerial photography, cartography and georeferenced contents, as well as the exploitation of the photography website and of the Olhares Academy. Relative to 2017, the activity related to Boa Cama Boa Mesa was transferred to the Publishing segment.

In the nine months to September 2018, Infoportugal registered a fall in turnover of 2.3%, which came to 1.6 M€, mainly due to the difficulty in execution of the aerial photography contracts, due to the adverse weather conditions until mid-summer. There was, however, a recovery from August onwards, which allowed for a slight improvement of revenues in the 3rd quarter of 2018, reaching 528 thousand euros, corresponding to an increase of 0.1% relative to the same period of the previous year, as well as an improvement in EBITDA.

In terms of consolidated results, the EBITDA of this segment was negative by 1.9 M€ in the nine months to September 2018, representing a decrease of 1.6% in comparison with the same period of 2017, penalised by restructuring costs. In the 3rd quarter of 2018, EBITDA was negative by 0.57 M€, corresponding to an improvement of 9.9%.

6. Prospects

The results obtained in the nine months to September 2018 permit the objective set out for 2018 by the IMPRESA Group to be reiterated, namely the continued reinforcement of profitability through the growth of EBITDA and Net Income.

Lisbon, October 29th, 2018

On behalf of the Board of Directors

José Freire Investor Relations Director www.impresa.pt

IMPRESA - SOCIEDADE GESTORA DE PARTICIPAÇÕES SOCIAIS, S.A.

CONSOLIDATED BALANCE SHEET Sept 2013

(Values in Euros)

	ASSETS	Sept 30th 2018	Dec 30th 2017
NON CURRENT ASSETS			Proforma
Goodwill		268 622 821	268 622 821
Other intangible assets		160 006	313 863
Tangible fixed assets		33 996 210	29 882 242
Financial investments
		3 935 495	3 614 521
Investment properties		1 478 489	1 478 789
Program Rights & Inventory		3 017 540	4 959 298
Defered Taxes		1 358 511	1 605 884
Other non current assets		7 144 835	5 567 277
Total Non Current Assets		319 713 907	316 044 695
CURRENT ASSETS
Program Rights & Inventory		17 264 346	13 133 704
Customers - current account		36 039 471	36 258 860
Other receivables		8 003 769	5 195 593
Cash and equivalents		3 840 978	3 824 133
Total Current Assets		65 148 564	58 412 290
Assets for Sale		3 200 000	13 845 466
	TOTAL ASSETS	388 062 471	388 302 451
		Sept 30th	Dec 30th
EQUITY, MINORITIES AND LIABILITIES		2018	2017
EQUITY
Capital		84 000 000	84 000 000
Share issue premiums		36 179 272	36 179 272
Legal reserve		2 001 797	2 001 797
Retained earnings and other reserves		183 670	21 774 666
Consolidated net profit		1 445 222	(21 590 996)
Equity of IMPRESA shareholders		123 809 961	122 364 739
Total Equity Funds		123 809 961	122 364 739
	LIABILITIES
NON CURRENT LIABILITIES
Loans		99 328 804	83 506 647
Provisions for risk and charges		4 714 679	4 502 402
Defered Taxes		339 650	339 650
Total Non Current Liabilities		104 383 133	88 348 699
CURRENT LIABILITIES
Loans		94 106 283	98 742 384
Suppliers payables		24 925 786	32 035 967
Defered Taxes		1 905 215	1 324 841
Other current liabilities		38 932 093	43 554 780
Total Current Liablities		159 869 377	175 657 972
Liabilities related assets for sale			1 930 741
TOTAL EQUITY, MINORITIES AND LIABILITIES		388 062 471	388 302 151

IMPRESA - SOCIEDADE GESTORA DE PARTICIPAÇÕES SOCIAIS, S.A. and SUBSIDIARIES

CONSOLIDATED PROFIT & LOSS ACCOUNTS

(Values in Euros)

	IAS	IAS
	Set 30th	Set 30th
	2018	2017
		pro-forma
Total revenues
Goods	7 387 594	18 446 796
Services rendered	118 044 487	124 991 483
Other revenues	739 622	387 214
Total revenues	126 171 703	143 825 493
Operating costs
Cost of goods sold	(53 612 891)	(60 997 006)
External supplies	(27 148 121)	(35 448 274)
Personnel	(31 829 626)	(37 494 161)
Depreciation	(2 661 769)	(2 726 857)
Provisions	(324 000)	(357 719)
Other operating costs	(929 780)	(857 301)
Total operating costs	(116 506 187)	(137 881 318)
Operating results	9 665 516	5 944 175
Financial results
Gain& losses in associated companies	330 974	26 401
Interest and other financial costs	(4 793 967)	(5 227 385)
	(4 462 993)	(5 200 984)
Results before taxes	5 202 523	743 191
Income tax	(3 757 301)	(860 969)
Consolidated net profit	1 445 222	(117 778)
Due to:
Main shareholders Minority shareholders	1 445 222	(117 778)