Half year 2024 financial report

Highlights of the first half of 2024

The Group introduced a wide variety of content, products and services covering 12 thematic universes, with more than 80 strong, iconic media brands among its clients, including Marie France, Auto Plus, Marmiton, Top Santé, Science & Vie, Télé Magazine, Aufeminin and Grazia.

In France, it reached 7 out of 10 French people, i.e. 37 million readers, through multi-media and multi-format distribution channels (editorial, videos, podcasts, television, events), both print and digital1.

BtoC d"ivision

The Group is France's leading magazine publisher.

As of 30 June 2024, it had

89.8 million copies2 in paid circulation for 77 titles. Its magazines are available at over 20,000 press outlets. It also has more than 1.6 mil- lion paid subscriptions, in-

cluding 308,000 subscriptions to diversification offers

(paywall, television, services). Seven of its titles are among the 30 most widely read magazines in France: Marmiton, Science

• Vie, Top Santé, Psychologies, Télé Star, Auto Plus and Mai- son & Travaux.

The Group is also the press leader in the GMS network. It distributes and sells its magazines (Télé Magazine, Gourmand, etc.) in over 5,000 hypermarkets and supermarkets, both at checkouts and on shelves. In the first half of the year, the Group put 64 publications up for sale on this network.

In addition to its domestic market, as of 2023 the Group now publishes magazines in Italy and the United States. Since Jan- uary 2023, it has published the Grazia and Icon brands in Italy,

1. Source: ACPM, One Next Global Study H1 2024, 23 April 2024, Audi- ences of press brands in millions of individuals aged 15 and over and over

1. days.

and took over the US edition of Grazia magazine during summer 2023.

The Group is constantly working to enhance its magazine of- fer. It launched several magazines in 2024.

Building on the success of its top-of- the-line men's brand ICON in several countries, and with the support of its Italian editorial team, the Group launched the ICON France magazine in March 2024, backed by a strong editorial presence on social media.

In partnership with Hugo Publishing, it also launched New Romance Magazine in June 2024, with the aim of extending the success of this literary genre in the publishing sector to the magazine market.

The Group also launched a Gazette series by Grazia in the United States in June.

2DSH 2023 ACPM, 15 Feb. 2024.

As consumer habits move towards new digital media, the Group is transitioning its thematic magazines, which is reflected in a gradual and parallel trend towards lower magazine sales volumes and higher selling prices. The magazine press in France is following the trends already seen in the US and UK markets, where the interest-based magazine press is holding up better than the news press, and where circulation volumes are concentrated in a smaller pool of readers who are passionate about a theme and inclined to pay more for a quality magazine in tune with their interests.

BtoB division

Growth in the French communications market, at +3.7% in 2023 and +1.0% per year on average since 2015, is being driven by growth in the digital segment. As content consumption (re)shifts more and more towards digital uses, advertisers are adapting to reach consumers "where they are"3. Spending on digital media, which represented 6% of the total market in 2012, accounted for more than 28% of investment in 2023. In 2023, given the macroeconomic context, these investments grew at a more moderate rate of 6.1%, compared with average annual growth of 11.2% since 2015 (including the covid period). The most dynamic levers over the year, excluding Search, were social, which grew by 11.5%, and video (web and social), which grew by 17.8%4.

This market trend is accompanied by a new use of advertising, centred on performance. Digital advertising enables advertisers to convert to a purchase more directly, by generating a link from the advert to the advertiser's own digital spaces, or even a purchase tunnel, thanks to the targeting of online consumers. Covid has helped to accelerate this shift towards a "performance" strategy, by speeding up online purchasing practices.

The Group is supporting the development of its magazines through a diversification strategy. By capitalising on its flagship brands, it offers readers other content and services in line with their passions. This diversification takes several forms:

• Publishing: this is a major area of diversification for the Group, as a continuation of its magazine publishing busi- ness. Through Reworld Media Edition, the Group put 70 publishing products on the market in the first half of 2024;
• Paywall: on 4 of its websites - Science & Vie, Science & Vie Junior, Auto Plus and Gamekult - the Group offers exclusive content by subscription;
• Television: the Group publishes 11 television channels, available free-to-air or by IPTV subscription, most of which are distributed by Internet service providers as part of themed channel packages;
• Other products and services: the Group has developed a complementary range of services and products in line with its thematic universes, including subscriptions, such as le- gal or IT assistance with Allo Pleine Vie, or on a fee-for-ser- vice basis, such as readers' trips or insurance products.

In the first half of 2024, the communications market grew by 6.5%. Growth continues to be driven by the digital segment (9.2%). It is mainly driven by major sporting events (Paris Olym- pics, Euro football), with little benefit for themed media.5

Given the situation, the Group is positioning itself on the digital communications market through its BtoB division, both as a media group that monetises its proprietary thematic audiences (maga- zines, web, social media) and as an intermediary or agency that supports its advertiser customers in the design, execution and digitalisation of their communications and marketing strategies.

Its services are multi-lingual and in- ternational. It is constantly evolving to adapt to changes in the market

and the needs of its customers. It combines branding and performance solutions, based on solid digital and technological expertise.

In France, the Group is one of the leading players in the digital market. In terms of audiences, it is the #3 media group on the web, with 31.0 million unique monthly visitors6, and the #1 media group on social media, with 81.8 million subscribers, up 5.5% year-on-year on a like-for-like basis. More than 820 million videos are viewed every month on the Group's digital me- dia, including 270 million on our websites and 550 million on our social media (+57% in one year).

In France and abroad, the Group has become a key player in adtech, with a diversified range of services, including a performance -based offer that it is continuing to develop. Today, this offer reaches more than 3,000 customers worldwide, connects more than 180,000 affiliate sites in 80 countries, generates more than 5.5 billion in sales for its customers, and includes influence marketing solutions based on more than 100,000 active influencers (Metapic).

Group ambitions

The Group has become essential among the media groups in France, with more than 80 thematic brands that are part of the daily lives of more than 7 out of 10 French people, and undeniable leadership in specialist areas such as healthcare, automobiles and cooking. It consolidates its leading positions in France, rooted in innovation and benefiting from the growth of the digital market.

In the second half, the BtoC division will continue to apply rigorous principles in managing its product circulation, while continuing to develop subscription sales and diversify its offer- ings. Its profitability bounced back in H1 2024 after reducing operating expenses, particularly industrial.

The BtoB division continues to invest in monetising the future growth of the digital advertising market. It is constantly building and adapting an innovative offer that aligns with the

expectations of a market which, despite slower growth in 2023, shows excellent long-term growth, driven by an ability to transform on a deep level.

Internationally, Reworld Media set new goals in 2023 with the acquisition of both the Grazia brand worldwide and direct media exploitation in Italy and the United States. Already present internationally with Tradedoubler's adtech activities, the Group is now a player on the international media market with one of the most prestigious fashion media brands, published in 25 countries and bringing together 15 million readers, 45 million Internet users and 30 million followers on social me- dia. In the first half of 2024, international business accounted for 33% of the Group's consolidated turnover, up by almost 12%.

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1.2.1.1 Income statement by business line

ACTIVITY REPORT

The BtoC division posted revenue of €114.2m in H1 2024, down -6.9% (-€8.5m) on H1 2023.

After experiencing an unfavourable baseline effect in the first quarter due to the timing of its magazine releases, resulting in an -8.5% (-€5.1m) drop in revenues, the BtoC division returned to historic trends in the second quarter, with revenue of €59.3m, a limited decline of -5.5% (-€3.4m) compared with the same period in 2023.

Subscription sales (45% of BtoC sales) fell by -9.4%, while the Group continued to capitalise on a portfolio of 1.6 million

paying subscriptions, with the average basket up by 1.6% to €5.41. Pay-per-use sales (55% of BtoC sales) fell by -4.9%.

The BtoC division successfully improved its profitability over the first half. It generated an EBIDTA7 of €9.3m, up 16.1% (€1.3m) compared to H1 2023. The EBITDA margin for this division reached 8.1% (H1 2023: 6.5%), up 1.6 points, thanks to an 8.5% reduction in operating expenses, due in particular to a significant fall in industrial costs (energy, paper).

The BtoB division generated record revenue of €149.9m in H1 2024, up 4.3% (€6.2m) on H1 2023. This includes an increase of +0.6% (+€0.5m) in the second quarter, following strong growth of +8.4% in the first quarter (+€5.8m).

This increase was driven by the growth of digital activities, which account for almost 90% of the BtoB division's revenues. These activities are part of a digital advertising market that is mainly driven by major sporting events, which is not very favourable to thematic media.

Over the first half of the year, the BtoB division benefited from the success of its performance-based offers. In line with the 2023 financial year, affiliation offers drove growth in the first quarter, giving way to new performance-based levers

(influence marketing, content to commerce, retail media, etc.) in the second quarter.

Although branding offers grew more moderately in the first half of the year, against an exceptional backdrop of political and sporting news in France, they enjoyed strong momentum on social media.

The BtoB division recorded an EBIDTA7 of €13.5m, down - 6.5% (-€0.9m) on H1 2023, for a margin of 9.0%, down

1.0 point due to a controlled increase in operating expenses of around 5.5%. This decline in BtoB EBITDA(7) is due to a slight increase in the share of performance-based offers in the prod- uct mix, with a dilutive effect on margins, and to the invest- ments made in high-growth potential levers.

The Group's consolidated EBIT8 (operating income) was €19.0m in H1 2024, up 3.6% (€0.7m), giving a 7.2% margin (H1 2023: 6.9%).

Financial income8 improved to -€3.9m (H1 2023: -€4.7m), while exceptional income7 also improved to -€3.2m (H1 2023: -€8.4m). This resulted in adjusted net income of €10.3m, a 2.3- fold increase on the first half of 2023 (H1 2023: €4.5m).

Consolidated net income was €6.2m, down €6.1m (H1 2023: €12.3m), due to a €3.3m charge for the impairment of treasury shares, as well as a base effect linked to goodwill amortisation (+€3.5m) and the recognition of deferred tax assets (+€4.3m) in H1 2023. Lastly, consolidated net income (Group share) came to €5.6m (H1 2023: €10.9m).

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1.2.1.5 Consolidated balance sheet

ACTIVITY REPORT