Reworld Media SaEURONEXT: ALREW

2021 Financial and non-financial performance report

Jul 1, 2022 at 5:22 PM UTC · Issued by Reworld Media Sa

CONTENTS

1	ACTIVITY REPORT .......................................................................	6
1.1	Message from the founders........................................................................................................	7
1.2	Activity report ...............................................................................................................................	8
1.2.1 Group activity and strategy ...........................................................................................................................................................	8
1.2.2 Research and development activity ...........................................................................................................................................	14
1.2.3 Main risks and uncertainties to which the Company is exposed ..........................................................................................	14
1.2.4 Results of the company Reworld Media SA..............................................................................................................................	17
1.2.5 Situation of subsidiaries and associates....................................................................................................................................	19

2		CORPORATE GOVERNANCE ..................................................	24
2.1	Corporate purpose of Reworld Media ....................................................................................	25
2.2		Share capital ...............................................................................................................................	25
2.2.1		Share capital and number of shares ..........................................................................................................................................	25
2.2.2		Crossing of declared legal thresholds ......................................................................................................................................	25
2.2.3		Action in concert ...........................................................................................................................................................................	26
2.2.4		Changes in capital ........................................................................................................................................................................	26
2.2.5		Treasury stock and treasury shares ............................................................................................................................................	27
2.2.6		Other marketable securities giving access to the share capital ............................................................................................	27
2.2.7		Powers conferred in respect of capital increases ....................................................................................................................	28
2.2.8		Employee share ownership statement (Art. L 225-102 of the Commercial Code) ............................................................	29
2.3		Share price..................................................................................................................................	29
2.4		Capital transactions ...................................................................................................................	29
2.5		Form of shares............................................................................................................................	30
2.6		Double voting rights..................................................................................................................	30
2.7		Crossing of thresholds...............................................................................................................	30
2.8	Pledging of the issuer's shares .................................................................................................	30
2.9		Distribution of dividends...........................................................................................................	30
2.10	Group Management ..................................................................................................................	30
2.11 Company Board of Directors....................................................................................................	33
2.11.1	List of mandates and functions in the company ......................................................................................................................	33
2.11.2	List of mandates and functions of the company's directors outside the company............................................................	34
2.11.3	Renewal of terms of office of directors......................................................................................................................................	36
2.11.4	Appointment of directors ............................................................................................................................................................	36
2.11.5	Compensation of Members of the Board of Directors ...........................................................................................................	36
2.11.6	Attendance of Board members ..................................................................................................................................................	36
2.11.7	Changes in the composition of the Board during the fiscal year..........................................................................................	36

2.12	Remuneration of the Directors .................................................................................................	37
2.13	Agreements concluded directly or indirectly between an officer or partner with more
	than 10% of the Company and a subsidiary with more than 50% of the Company...........	38
2.14	AFEP-MEDEF corporate governance system in force in France ..........................................	38

3	STATEMENT OF NON-FINANCIAL PERFORMANCE............	40
3.1	Introduction ................................................................................................................................	41
3.1.1	Two-way editorial..........................................................................................................................................................................	41
3.1.2 "TOP" CSR ambitions and strategy ............................................................................................................................................	41
3.1.3 Governance that serves the ambitions ......................................................................................................................................	45
3.2	Business model, issues at stake and risks ...............................................................................	45
3.2.1	The business model......................................................................................................................................................................	45
3.2.2 Challenges for the information and communication sector ..................................................................................................	48
3.2.3	Main non-financial risks................................................................................................................................................................	49
3.3	Transmit.......................................................................................................................................	51
3.3.1 To transmit and enlighten our readers......................................................................................................................................	51
3.3.2 Mobilising its advertising department to the benefit of the associations ...........................................................................	53
3.3.3 Inspiring and supporting entrepreneurs...................................................................................................................................	54
3.3.4 Acting ethically in our operations ..............................................................................................................................................	55
3.3.5 To develop a responsible purchasing policy ...........................................................................................................................	55
3.3.6 Maintaining dialogue with our stakeholders............................................................................................................................	56
3.4	Optimizing ..................................................................................................................................	57
3.4.1 Implementing a general environmental policy........................................................................................................................	57
3.4.2 Reducing all forms of pollution...................................................................................................................................................	57
3.4.3 Setting up a circular economy ....................................................................................................................................................	57
3.4.4 Taking action to limit climate change........................................................................................................................................	60
3.4.5	Protecting biodiversity .................................................................................................................................................................	61
3.5	Promote.......................................................................................................................................	62
3.5.1 Developing the skills of all employees......................................................................................................................................	62
3.5.2 Maximising inclusion through employment .............................................................................................................................	62
3.5.3 Ensuring equality in the workplace ............................................................................................................................................	63
3.5.4 Protecting employees' health and improving their well-being.............................................................................................	64
3.5.5	Sustaining social dialogue...........................................................................................................................................................	66
3.6	Methodology notes ...................................................................................................................	67
3.6.1	Report construction methodology.............................................................................................................................................	67
3.6.2 Table showing priority indicators...............................................................................................................................................	68
3.6.3 Report of the independent third party on the statement of non-financial performance ..................................................	72

4	CONSOLIDATED FINANCIAL STATEMENTS ........................	77
4.1	Consolidated balance sheet.....................................................................................................	78
4.2	Consolidated income statement..............................................................................................	79
4.3	Cash flow statement ..................................................................................................................	80
4.4	Change in shareholders' equity ...............................................................................................	81
4.5	Key events...................................................................................................................................	82
4.5.1	Capital increase.............................................................................................................................................................................	82
4.5.2 Cancellation of treasury shares...................................................................................................................................................	82
REWORLD MEDIA 2021 FINANCIAL AND NON-FINANCIAL PERFORMANCE REPORT	3

4.5.3	Acquisition of stake.......................................................................................................................................................................	82
4.5.4	Acquisition of control ...................................................................................................................................................................	82
4.6 Group activities and organisation chart ..................................................................................	83
4.6.1	Business ..........................................................................................................................................................................................	83
4.6.2 Group organisational chart as of 31 December 2021 ............................................................................................................	83
4.6.3 List of consolidated companies ..................................................................................................................................................	84
4.6.4 Companies excluded from the consolidation scope ..............................................................................................................	88
4.7 Accounting standards, consolidation methods, valuation methods and rules ..................	89
4.7.1	Accounting framework.................................................................................................................................................................	89
4.7.2	Consolidation processes .............................................................................................................................................................	89
4.7.3 Valuation methods and rules ......................................................................................................................................................	91

4.8 Explanation of the balance sheet and income statement accounts and changes therein 94

4.8.1	Intangible assets............................................................................................................................................................................	94
4.8.2	Property, plant and equipment ..................................................................................................................................................	96
4.8.3	Long-term investments ................................................................................................................................................................	96
4.8.4	Inventories and work-in-progress ..............................................................................................................................................	97
4.8.5	Breakdown of receivables ...........................................................................................................................................................	97
4.8.6	Cash assets.....................................................................................................................................................................................	98
4.8.7	Share capital ..................................................................................................................................................................................	98
4.8.8	Provisions for liabilities and charges..........................................................................................................................................	99
4.8.9	Financial debts ..............................................................................................................................................................................	99
4.8.10	Operating and non-operating liabilities .................................................................................................................................	100
4.8.11	Off-balance sheet liabilities .......................................................................................................................................................	101
4.8.12	Turnover .......................................................................................................................................................................................	101
4.8.13	Breakdown of operating expenses ..........................................................................................................................................	101
4.8.14	Financial result.............................................................................................................................................................................	102
4.8.15	Exceptional income ....................................................................................................................................................................	102
4.8.16	Deferred taxes .............................................................................................................................................................................	102
4.8.17	Other information .......................................................................................................................................................................	103
4.9	Statutory auditors' report on the consolidated financial statements .................................	105
5	CORPORATE ACCOUNTS .....................................................	111
5.1	Income statement as at 12/31/2021 ......................................................................................	112
5.2	Balance sheet as at 12/31/2021 .............................................................................................	113
5.3	Company business and significant events ............................................................................	115
5.3.1	Company activity.........................................................................................................................................................................	115
5.3.2	Key events of the year ................................................................................................................................................................	115
5.3.3	Comparability of financial statements .....................................................................................................................................	115
5.4	Material events since the end of the financial year ..............................................................	116
5.5	Accounting rules and methods ..............................................................................................	117
5.5.1	General rules................................................................................................................................................................................	117
5.5.2	Use of estimates ..........................................................................................................................................................................	117
5.5.3	Deviations from general principles..........................................................................................................................................	117
5.6	Information on the balance sheet - assets.............................................................................	118
5.6.1	Property, plant and equipment and intangible assets..........................................................................................................	118
5.6.2	Equity investments......................................................................................................................................................................	119
5.6.3	Other financial assets .................................................................................................................................................................	119
5.6.4	Maturity schedule of receivables..............................................................................................................................................	119
5.6.5	Cash...............................................................................................................................................................................................	120
5.6.6	Marketable securities .................................................................................................................................................................	120
5.6.7	Prepaid expenses and deferred income.................................................................................................................................	120

4	2021 FINANCIAL AND NON-FINANCIAL PERFORMANCE REPORT REWORLD MEDIA

5.7 Information on the balance sheet liabilities ..........................................................................	121
5.7.1	Equity ............................................................................................................................................................................................	121
5.7.2	Statement of provisions .............................................................................................................................................................	121
5.7.3	Maturity of debts .........................................................................................................................................................................	122
5.7.4	Accrued expenses.......................................................................................................................................................................	123
5.8 Information on the income statement ...................................................................................	124
5.8.1 Breakdown of net turnover........................................................................................................................................................	124
5.8.2	Financial result.............................................................................................................................................................................	124
5.8.3	Exceptional income ....................................................................................................................................................................	124
5.9	Miscellaneous information......................................................................................................	125
5.9.1 Identity of the consolidating parent company .......................................................................................................................	125
5.9.2 List of subsidiaries and equity interests...................................................................................................................................	125
5.9.3 Remuneration of the administrative bodies ...........................................................................................................................	126
5.9.4	Executive compensation............................................................................................................................................................	126
5.9.5 Information about related parties ............................................................................................................................................	126
5.9.6	Advances to executives..............................................................................................................................................................	126
5.9.7	Off-balance sheet liabilities .......................................................................................................................................................	126
5.9.8	Tax consolidation ........................................................................................................................................................................	126
5.10 Results and other key information for the past five financial years ....................................	127
5.11 Statutory auditors' report on the annual financial statements ............................................	128
5.12	Statutory auditors' report on regulated agreements and commitments ..........................	134
6	APPENDIX ................................................................................	143
6.1 Appendix - management report references.........................................................................	143

REWORLD MEDIA 2021 FINANCIAL AND NON-FINANCIAL PERFORMANCE REPORT

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