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REG - Grupo Clarin S.A. - Grupo Clarín Announces First Quarter 2021 Results

Grupo Clarin SAAnnouncement

13/05/2021 14:10

RNS Number : 5771Y

Grupo Clarin S.A.

13 May 2021

Grupo Clarín Announces its First Quarter 2021 Results

Buenos Aires, Argentina, May 13, 2021 - Grupo Clarín S.A. ("Grupo Clarín" or the "Company" - LSE: GCLA; BCBA: GCLA), the largest media company in Argentina, announced today its First quarter 2021 results. Figures in this report have been prepared in accordance with International Financial Reporting Standards ^(*) ("IFRS") as of March 31, 2021 and are stated in Argentine Pesos ("Ps"), unless otherwise indicated.

^(*)The Company's Management has applied IAS 29 in the preparation of these financial statements (inflation adjustment) because Resolution 777/18, issued by the Comisión Nacional de Valores ("CNV"), establishes that the restatement will be applied to the financial statements.

Highlights (1Q21 vs. 1Q20):

§ Total Revenues reached Ps. 6,885.9 million, a decrease of 5.6% compared to 1Q20, mainly due to lower programming revenues in the Broadcasting and Programming segment (partially offset by higher advertising revenues), the un-consolidation of the postal business and lower circulation revenues in the Printing and Publishing segment.

§ Adjusted EBITDA ⁽¹⁾ reached Ps. 1,304.0 million, compared to (185.7) for 1Q20, mainly driven higher revenues with lower costs in the Broadcasting and Programming segment, and by costs reductions in real terms greater than the decrease in revenues in Printing and Publishing.

§ Grupo Clarín's Adjusted EBITDA Margin ⁽²⁾ was 18.9% in 1Q21, compared to (2.5%) in 1Q20.

§ Net Income for the period totaled Ps. 669.5 million, compared to a loss of Ps. 895.5 million reported in 1Q20. Net Income for the period attributable to Equity Shareholders amounted Ps 680.9 million in 1Q21 from a loss of Ps. 755.0 million in 1Q20.

FINANCIAL HIGHLIGHTS


	(In millions of Ps.)	1Q21	1Q20	% Ch.	4Q20	QoQ
Total Revenues		6,885.9	7,297.9	(5.6%)	8,871.0	(22.4%)
Adjusted EBITDA ⁽¹⁾		1,304.0	(185.7)	(802.2%)	1,950.4	(33.1%)
Adjusted EBITDA Margin ⁽²⁾		18.9%	(2.5%)	(844.2%)	22.0%	(13.9%)
Net Income for the period		669.5	(895.5)	(174.8%)	586.1	14.2%
Attributable to:
Equity Shareholders		680.9	(755.0)	(190.2%)	581.3	17.1%
Non-Controlling Interests		(11.3)	(140.4)	(91.9%)	4.8	(334.0%)

(1) We define Adjusted EBITDA as Total Revenues minus cost of sales (excluding depreciation and amortization) and selling and administrative expenses (excluding depreciation and amortization). We believe that Adjusted EBITDA is a meaningful measure of our performance. It is commonly used to analyze and compare media companies based on operating performance, leverage and liquidity. Nonetheless, Adjusted EBITDA is not a measure of net income or cash flow from operations and should not be considered as an alternative to net income, an indication of our financial performance, an alternative to cash flow from operating activities or a measure of liquidity. Other companies may compute Adjusted EBITDA in a different manner; therefore, Adjusted EBITDA as reported by other companies may not be comparable to Adjusted EBITDA as we report it.

(2) We define Adjusted EBITDA Margin as Adjusted EBITDA over Total Revenues.

OPERATING RESULTS

Total Revenues reached Ps. 6,885.9 million, a decrease of 5.6% from Ps. 7,297.9 million in 1Q20. Advertising revenues increased 8.8% and represented around 40.3% of the Total Revenues of the Company. Circulation revenues decreased 10.6% and represented 29.6% of the Total.

Following is a breakdown of Total Revenues by business segment:

REVENUES (In millions of Ps.)	1Q21	1Q20	YoY	4Q20	QoQ
Printing and Publishing	3,408.7	3,688.9	(7.6%)	3,739.0	(8.8%)
Broadcasting and Programming	3,479.4	3,259.7	6.7%	4,854.8	(28.3%)
Others	702.7	789.6	(11.0%)	634.8	10.7%
Subtotal	7,590.8	7,738.2	(1.9%)	9,228.5	(17.7%)
Eliminations	(704.9)	(440.3)	60.1%	(357.6)	97.1%
Total	6,885.9	7,297.9	(5.6%)	8,871.0	(22.4%)

Cost of sales (Excluding Depreciation and Amortization) reached Ps. 3,682.2 million, a decrease of 28.8% from Ps. 5,170.3 million reported in 1Q20 due to lower costs across all business segments, mainly related to lower programing costs in Broadcasting and Programing and lower salaries.

Selling and Administrative Expenses (Excluding Depreciation and Amortization) reached Ps. 1,899.8 million, a decrease of 17.9% from Ps. 2,313.3 million in 1Q20. This decrease was mainly due to lower expenses in Printing and Publishing.

Adjusted EBITDA reached Ps. 1,304.0 million, an increase of 802.2% from Ps. (185.7) million reported for 1Q20. This increase was driven by higher advertising revenues in Broadcasting and Programming and costs reduction initiatives across all segments to accompany the reduction in revenues derived from the impact of the COVID - 19 pandemic.

Following is a breakdown of adjusted EBITDA by business segment:

ADJUSTED EBITDA

(In millions of Ps.)	1Q21	1Q20	YoY	4Q20	QoQ
Printing and Publishing	337.2	(126.4)	(366.7%)	401.3	(16.0%)
Broadcasting and Programming	895.2	(56.8)	(1676.2%)	1,670.3	(46.4%)
Others	71.6	(2.5)	(2981.5%)	(121.2)	(159.1%)
Total	1,304.0	(185.7)	(802.2%)	1,950.4	(33.1%)

Financial results net totaled Ps. (537.6) million compared to Ps. (180.6) million in 1Q20. This increase was mainly due to higher negative inflation adjustment results and negative result of operations with notes and bonds compared to a gain in 2020.

Equity in earnings from unconsolidated affiliates in 1Q21 totaled Ps. 249.7 million, compared to Ps. 214.2 million in 1Q20.

Other Income (expenses), net reached Ps. 8.2 million, compared to Ps. (311.5) million in 1Q20, mainly from impairment of Goodwill in 2020.

Income tax as of 1Q21 reached Ps. (34.3) million, from Ps. Ps. (15.7) million in 1Q20.

Profit for the period totaled Ps. 669.5 million, from a loss of Ps. 895.5 million reported in 1Q20. The Equity Shareholders Profit for the period amounted Ps. 680.9 million, compared to a loss of 755.0 million.

Cash used in acquisitions of property, plant and equipment (CAPEX) totaled Ps. 181.6 million in 1Q21, a decrease of 20.3% from Ps. 227.8 million reported in 1Q20. Out of the total CAPEX in 1Q21, 88.5% was allocated towards the Broadcasting and Programming segment, 10.0% to the Printing and Publishing segment and the remaining 1.5% to other activities.

SALES BREAKDOWN BY SOURCE OF REVENUE - MARCH 2021

(In millions of Ps.)	Printing & Publishing	Broadcasting & Programming	Others	Eliminations	Total	%
Advertising	784.6	2,031.6	17.2	(60.9)	2,772.6	40.3%
Circulation	2,040.4	-	-	-	2,040.4	29.6%
Printing	193.8	-	-	(40.4)	153.4	2.2%
Programming	-	1,313.7	-	-	1,313.7	19.1%
Other Sales	389.8	134.0	685.5	(603.6)	605.8	8.8%
Total Sales	3,408.7	3,479.4	702.7	(704.9)	6,885.9	100.0%

SALES BREAKDOWN BY SOURCE OF REVENUE - MARCH 2020

(In millions of Ps.)	Printing & Publishing	Broadcasting & Programming	Others	Eliminations	Total	%
Advertising	877.0	1,680.1	65.7	(74.4)	2,548.3	34.9%
Circulation	2,282.8	-	-	-	2,282.8	31.3%
Printing	160.0	-	-	(10.0)	150.0	2.1%
Programming	-	1,561.9	-	-	1,561.9	21.4%
Other Sales	369.1	17.8	723.9	(355.9)	754.9	10.3%
Total Sales	3,688.9	3,259.7	789.6	(440.3)	7,297.9	100.0%

RESULTS BY BUSINESS SEGMENT

BROADCASTING AND PROGRAMMING

Revenues

Revenues increased by 6.7% to Ps. 3,479.4 million in 1Q21, compared to Ps. 3,259.7 million in 1Q20 mainly due to higher revenues in motoring events and higher advertising revenues, partially offset by lower programming revenues.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 29.6% to Ps. 1,814.9 million in 1Q21, compared to Ps. 2,577.5 million in 1Q20. This is mainly attributable to lower programming costs in Channel 13.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses increased by 4.1% to Ps. 769.2 million in 1Q21, compared to Ps. 739.0 million in 1Q20. The increase was primarily the result of higher salaries.

Depreciation and Amortization

Depreciation and amortization expenses decreased by 13.1% to Ps. 155.2 million in 1Q21 compared to Ps. 178.6 million reported in 1Q20.

PRINTING AND PUBLISHING

Revenues

Total revenues decreased by 7.6% to Ps. 3,408.7 million in 1Q21, mainly as a result of the un-consolidation of the postal business.

Cost of Sales (Excluding Depreciation and Amortization)

Cost of sales decreased by 18.6% to Ps. 1,775.4 million in 1Q21, compared to Ps. 2,181.4 million in 1Q20. The decrease was mainly the result of the effect of the un-consolidation of the postal business, lower raw materials consumption and salaries and severance payments.

Selling and Administrative Expenses (Excluding Depreciation and Amortization)

Selling and administrative expenses decreased by 20.7% to Ps. 1,296.2 million in 1Q21, compared to the Ps. 1,634.0 million reported in 1Q20. This was primarily the result of lower marketing and advertising costs, salaries, distribution costs and fees for services.

Depreciation and Amortization

Depreciation and amortization expenses decreased by 38.9% to Ps. 93.9 million in 1Q21 compared to Ps. 153.6 million in 1Q20.

OTHERS

Total revenues in this segment were driven by administrative and corporate services rendered by the Company and its subsidiary GC Gestión Compartida S.A. to third parties, as well as to other subsidiaries of the Company (which are eliminated in the consolidation). Cost of sales (excluding depreciation and amortization) was mainly the result of salaries and professional consulting fees.

In this period, total revenues decreased 11.0% to Ps. 702.7 from Ps. 789.6 million reported in 1Q20. EBITDA resulted in Ps. 71.6 million.

OPERATING STATISTICS BY BUSINESS SEGMENT

PRINTING AND PUBLISHING

		1Q21		1Q20		YoY		4Q20		QoQ
Circulation ⁽¹⁾	229.4		241.9		-5.2%		250.4		-8.4%

⁽¹⁾ Average number of copies according to IVC (including Diario Clarín and Olé)

BROADCASTING AND PROGRAMMING

		1Q21		1Q20		YoY		4Q20		QoQ
Advertising Share % ⁽¹⁾	35.7%		36.1%		-1.0%		35.9%		-0.6%
Audience Share % ⁽²⁾
Prime Time	30.8%		31.5%		-2.3%		32.1%		-3.9%
Total Time	31.0%		30.1%		3.0%		31.8%		-2.4%

⁽¹⁾ Company estimates, over ad spend in Ps. In broadcast TV for AMBA region.

⁽²⁾ Share of broadcast TV audience according to IBOPE for AMBA. Prime Time is defined as Monday through Sunday from 8pm to 12am. Total Time is defined as Monday through Sunday from 12 pm to 12 am.

DIGITAL KPIs

	1Q21	1Q20	YoY	4Q20	QoQ
Page Views ⁽¹⁾	858.4	1,170.2	-26.6%	969.5	-11.5%
Mobile page Views	592.7	842.9	-29.7%	693.3	-14.5%

⁽¹⁾ In millions. Average. Source DAX and Company Estimates.

DEBT AND LIQUIDITY

(In millions of Ps.)	March 2021	March 2020	% Change
Short Term and Long Term Debt
Current Financial Debt	237.9	1,545.9	(84.6%)
Financial loans	64.9	770.7	(91.6%)
Accrued interest	18.1	34.1	(46.8%)
Acquisition of equipment	24.1	18.4	30.8%
Related Parties Accrued Interest	10.8	12.0	(9.6%)
Related Parties Capital	6.8	9.7	(29.9%)
Bank overdraft	113.2	701.0	(83.9%)
Non-Current Financial Debt	1,520.1	1,557.5	(2.4%)
Financial loans	1,495.6	1,536.7	(2.7%)
Acquisition of equipment	24.6	20.8	18.0%
Total Financial Debt (A)	1,758.0	3,103.4	(43.4%)
Total Short Term and Long Term Debt	1,758.0	3,103.4	(43.4%)

Cash and Cash Equivalents (B)	3,382.8	3,314.6	2.1%
Net Debt (A) - (B)	(1,624.8)	(211.2)	669.5%
Net Debt/Adjusted Ebitda ⁽¹⁾	(0.32x)	(0.11x)	175.2%

Total Financial Debt⁽¹⁾ and Net Debt, decreased 43.4% to Ps. 1,758.0 million from Ps. 3,103.4 million and to Ps. (1,624.8) million from Ps. (211.2) million, respectively.

Debt coverage ratio ⁽¹⁾ as of March 31, 2021 was (0.32x) in the case of Net Debt and of 0.34x in terms of Total Financial Debt.

⁽¹⁾Debt Coverage Ratio is defined as Total Financial Debt divided by Last Twelve Months Adjusted EBITDA. Total Financial debt is defined as financial loans and debt for acquisitions, including accrued interest.

REVENUES AND EBITDA - IAS 29 Adjustment

REVENUES

(In millions of Ps.)	1Q21	1Q20	YoY	1Q21 ex IAS 29		IAS 29 Adjustment	1Q21 as reported	1Q20 ex IAS 29	IAS 29 Adjustment	1Q20 as reported
Printing and Publishing	3,408.7	3,688.9	(7.6%)		3,267.0	141.7	3,408.7	2,513.8	1,175.1	3,688.9
Broadcasting and Programming	3,479.4	3,259.7	6.7%		3,334.7	144.7	3,479.4	2,221.3	1,038.4	3,259.7
Others	702.7	789.6	(11.0%)		673.5	29.2	702.7	538.0	251.5	789.6
Subtotal	7,590.8	7,738.2	(1.9%)		7,275.2	315.6	7,590.8	5,273.1	2,465.1	7,738.2
Eliminations	(704.9)	(440.3)	60.1%		(675.5)	(29.3)	(704.9)	(300.0)	(140.3)	(440.3)
Total	6,885.9	7,297.9	(5.6%)		6,599.6	286.3	6,885.9	4,973.1	2,324.8	7,297.9

EBITDA

(In millions of Ps.)	1Q21	1Q20	YoY	1Q21 ex IAS 29	IAS 29 Adjustment	1Q21 as reported	1Q20 ex IAS 29	IAS 29 Adjustment	1Q20 as reported
Printing and Publishing	337.2	(126.4)	(366.7%)	323.1	14.0	337.2	(86.1)	(40.3)	(126.4)
Broadcasting and Programming	895.2	(56.8)	(1676.2%)	858.0	37.2	895.2	(38.7)	(18.1)	(56.8)
Others	71.6	(2.5)	(2981.5%)	68.6	3.0	71.6	(1.7)	(0.8)	(2.5)
Subtotal	1,304.0	(185.7)	(802.2%)	1,249.8	54.2	1,304.0	(126.5)	(59.2)	(185.7)

STOCK AND MARKET INFORMATION

Grupo Clarín trades its stock in the Buenos Aires Stock Exchange (BCBA) and in the London Stock Exchange (LSE), in the form of shares and GDS's, respectively.


GCLA (BCBA) Price per Share (ARS)	42.3
GCLA (LSE) Price per GDS (USD)	1.5
Total Shares	106,776,004
Total GDSs	53,388,002
Closing Price	May 12, 2021

CONFERENCE CALL AND WEBCAST INFORMATION

GRUPO CLARIN S.A.

(BCBA: GCLA; LSE: GCLA)

cordially invites you to participate in its Webcast Presentation

to discuss First Quarter 2021 Results

Date: Thursday, May 20, 2021

Time: 2:00pm Buenos Aires Time/6:00pm London Time/1:00pm New York Time

The 1Q21 results will be presented via webcast presentation. To access the live stream and slide presentation, visit: https://services.choruscall.com/links/gcla210520LkHjgTj9.html

The webcast presentation will also be available at http://www.grupoclarin.com/ir/

Investor Relations Contacts
In Buenos Aires:	In London:	In New York:

Samantha Olivieri Valentina López	Alex Money	Camilla Ferreira and Marcella Ewerton Dragone

Grupo Clarín S.A.	Jasford IR	Fig Corporate Communications
Tel: +54 11 4309 7215	Tel: +44 20 3289 5300	Tel: +1 917 691-4047
Email: investors@grupoclarin.com	E-mail: alex@jasford.com	E-mail: fig@fig.ooo

ABOUT THE COMPANY

Grupo Clarín is the largest media company in Argentina and a leading company in printing and publishing and broadcasting and programming markets. Its flagship newspaper -Diario Clarín- is one of the highest circulation newspapers in Latin America. Grupo Clarín is the largest producer of media content in Argentina, including news, sports and entertainment and reaches substantially all segments of the Argentine population in terms of wealth, geography and age.

Disclaimer

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Grupo Clarín. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. Grupo Clarín does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in Grupo Clarín's projections or forward-looking statements, including, among others, general economic conditions, Grupo Clarín's competitive environment, risks associated with operating in Argentina a, rapid technological and market change, and other factors specifically related to Grupo Clarín and its operations.

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Amounts stated in Argentine Pesos - Note 2.1.1)

	March 31, 2021	March 31, 2020



Revenues	6,885,912,548	7,297,937,795

Cost of Sales (1)	(3,946,031,483)	(5,515,125,133)

Subtotal - Gross Profit	2,939,881,065	1,782,812,662

Selling Expenses (1)	(911,249,741)	(1,246,592,886)
Administrative Expenses (1)	(1,045,133,996)	(1,138,028,106)

Other Income and Expenses, net	8,279,734	(311,536,215)

Financial Expenses on Debt	(167,687,067)	(307,263,537)
Gain (Loss) on Net Monetary Position	(255,114,902)	(14,563,415)
Other Financial Results, net	(114,818,814)	141,204,502
Financial Results	(537,620,783)	(180,622,450)

Equity in Earnings from Associates	249,741,591	214,244,030

Income (Loss) before Income Tax	703,897,870	(879,722,965)

Income Tax	(34,325,023)	(15,734,004)

Net Income (Loss) for the Period	669,572,847	(895,456,969)


Other Comprehensive Income

Items which can be reclassified to Net Income (Loss)
Variation in Translation Differences of Foreign Operations	(6,555,509)	(17,233,492)
Other Comprehensive Income (Loss) for the Period	(6,555,509)	(17,233,492)

TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD	663,017,338	(912,690,461)

(Loss) Income Attributable to:

Shareholders of the Parent Company	680,918,101	(755,024,399)

Non-Controlling Interests	(11,345,254)	(140,432,570)

Total Comprehensive Income (Loss) Attributable to:

Shareholders of the Parent Company	674,379,164	(772,257,891)

Non-Controlling Interests	(11,361,826)	(140,432,570)

Basic and Diluted Earnings per Share (Note 10)	6.38	(7.07)

⁽¹⁾Includes amortization of intangible assets and film library, right-of-use assets and depreciation of property, plant and equipment in the amount of $ 320,474,455 and $ 416,113,968 for the three-month periods ended March 31, 2021 and 2020, respectively.

The Consolidated Statements of Operations for each business segment are included in the Financial Statements as of March 31, 2021, available at http://www.grupoclarin.com/ir.

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF MARCH 31, 2021 AND DECEMBER 31, 2020

(Amounts stated in Argentine Pesos - Note 2.1.1)

	March 31, 2021	December 31, 2020
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment	7,845,258,961	7,946,183,722
Intangible Assets	469,497,608	517,082,800
Goodwill	24,932,495	24,932,495
Deferred Tax Assets	1,082,461,856	972,905,581
Investments in Unconsolidated Affiliates	3,456,141,959	3,036,881,648
Other Investments	9,501,633	15,178,513
Right-of-Use Assets	73,098,376	93,982,188
Inventories	87,091,157	26,466,360
Other Assets	50,884,824	51,280,153
Other Receivables	112,139,357	120,775,550
Trade Receivables	7,381,686	8,142,295
Total Non-Current Assets	13,218,389,912	12,813,811,305

CURRENT ASSETS
Inventories	1,092,022,727	1,257,907,047
Other Assets	69,681,116	127,369,276
Other Receivables	2,444,750,722	2,382,571,065
Trade Receivables	7,291,067,400	8,896,384,884
Other Investments	2,355,089,896	2,195,920,245
Cash and Banks	1,500,859,821	1,461,736,121
Total Current Assets	14,753,471,682	16,321,888,638

Total Assets	27,971,861,594	29,135,699,943

EQUITY (as per the corresponding statement)
Attributable to Shareholders of the Parent Company
Shareholders' Contribution	14,065,711,280	14,065,711,280
Other Items	21,175,403	27,714,340
Retained Earnings	2,056,474,846	1,375,556,745
Total Attributable to Shareholders of the Parent Company	16,143,361,529	15,468,982,365

Attributable to Non-Controlling Interests	97,053,413	108,415,239
Total Equity	16,240,414,942	15,577,397,604

LIABILITIES
NON-CURRENT LIABILITIES
Provisions and Other Charges	1,193,573,819	1,223,274,547
Financial Debt	1,520,104,544	1,626,166,110
Deferred Tax Liabilities	267,615,331	213,449,161
Taxes Payable	60,018,370	16,314,139
Lease Liabilities	13,274,627	18,790,671
Other Liabilities	280,473,527	289,845,457
Trade and Other Payables	31,112,761	41,318,222
Total Non-Current Liabilities	3,366,172,979	3,429,158,307

CURRENT LIABILITIES
Financial Debt	237,923,941	308,741,808
Taxes Payable	810,912,972	1,104,833,192
Lease Liabilities	61,393,809	78,920,543
Other Liabilities	971,211,280	1,018,186,323
Trade and Other Payables	6,283,831,671	7,618,462,166
Total Current Liabilities	8,365,273,673	10,129,144,032

Total Liabilities	11,731,446,652	13,558,302,339

Total Equity and Liabilities	27,971,861,594	29,135,699,943

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Amounts stated in Argentine Pesos - Note 2.1.1)

	Equity attributable to Shareholders of the Parent Company									Equity Attributable to Non-Controlling Interests	Total Equity
	Shareholders' Contribution				Other Items		Retained Earnings
	Capital Stock	Inflation Adjustment on Capital Stock	Additional Paid-in Capital	Subtotal	Translation of Foreign Operations	Other Reserves	Voluntary Reserves (1)	Retained Earnings	Total Equity of Controlling Interests
Balances as of January 1, 2021	106,776,004	5,670,873,924	8,288,061,352	14,065,711,280	221,786,182	(194,071,842)	1,686,925,596	(311,368,851)	15,468,982,365	108,415,239	15,577,397,604
Net Income (Loss) for the Period	-	-	-	-		-	-	680,918,101	680,918,101	(11,345,254)	669,572,847
Other Comprehensive Income:
Variation in Translation Differences of Foreign Operations	-	-	-	-	(6,538,937)	-	-	-	(6,538,937)	(16,572)	(6,555,509)
Balances as of March 31, 2021	106,776,004	5,670,873,924	8,288,061,352	14,065,711,280	215,247,245	(194,071,842)	1,686,925,596	369,549,250	16,143,361,529	97,053,413	16,240,414,942

Balances as of January 1, 2020	106,776,004	5,670,873,924	10,605,941,468	16,383,591,396	218,062,805	(182,385,687)	1,686,925,596	(2,317,880,117)	15,788,313,993	317,595,588	16,105,909,581
Dividends and Other Movements of Non-Controlling Interest	-	-	-	-	-	-	-	-	-	(4,791,736)	(4,791,736)
Net Income (Loss) for the Period	-	-	-	-	-	-	-	(755,024,399)	(755,024,399)	(140,432,570)	(895,456,969)
Other Comprehensive Income:
Variation in Translation Differences of Foreign Operations	-	-	-	-	(17,233,492)	-	-	-	(17,233,492)	-	(17,233,492)
Balances as of March 31, 2020	106,776,004	5,670,873,924	10,605,941,468	16,383,591,396	200,829,313	(182,385,687)	1,686,925,596	(3,072,904,516)	15,016,056,102	172,371,282	15,188,427,384

^{(1) Corresponds to Judicial Reserve for Future Dividends Distribution}

GRUPO CLARÍN S.A.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Amounts stated in Argentine Pesos - Note 2.1.1)

	March 31, 2021	March 31, 2020
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net Income (Loss) for the Period	669,572,847	(895,456,969)
Income Tax	34,325,023	15,734,004
Accrued Interest, net	(15,856,862)	118,371,858
Adjustments to reconcile Net Income (Loss) for the Period to Cash provided by Operating Activities:
Depreciation of Property, Plant and Equipment	231,703,233	265,199,101
Amortization of Intangible Assets and Film Library	65,929,059	117,969,992
Amortization of Right-of-Use Assets	22,842,163	32,944,875
Net Allowances	86,054,077	141,037,552
Financial Income, except Interest	147,907,082	(48,610,664)
Gain (Loss) on Net Monetary Position	255,114,902	14,563,415
Equity in Earnings from Associates	(249,741,591)	(214,244,030)
Impairment of Goodwill	-	342,995,359
Other Income and Expenses	(15,011,512)	5,203,463
Changes in Assets and Liabilities:
Trade Receivables	110,243,712	(194,275,229)
Other Receivables	(415,443,879)	(636,880,288)
Inventories	38,749,276	337,899,711
Other Assets	59,669,805	4,049,274
Trade and Other Payables	12,778,961	845,177,648
Taxes Payable	(113,480,884)	(159,966,775)
Other Liabilities	23,762,176	(33,828,548)
Provisions	(16,772,802)	(24,387,818)
Payments of Income tax	(105,204,674)	(15,895,625)

Net Cash Flows provided by Operating Activities	827,140,112	17,600,306

CASH FLOWS PROVIDED BY INVESTMENT ACTIVITIES
Payments for Acquisition of Property, Plant and Equipment	(181,587,468)	(227,818,726)
Payments for Acquisition of Intangible Assets	(42,165,468)	(113,742,122)
Acquisition of Government and Corporate Securities	(474,674,385)	-
Collection of Government Securities	23,678,091	-
Proceeds from Sale of Property, Plant and Equipment	343,214	270,696
Collection of loans - granted	26,160,956	7,258,998
Collection of Loans - interest	-	8,842,276
Proceeds from Sale of Other Assets	-	1,997,084
Loans Granted	(17,369,185)	-
Transactions with Notes, Bonds and Other Placements, Net	299,218,750	121,096,531
Payment of capital contributions	(11,459,113)	-

Net Cash Flows used in Investing Activities	(377,854,608)	(202,095,263)

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
Loans Obtained	134,317,403	669,659,765
Payment of Financial Debt	(136,721,852)	(375,554,216)
Payment of Interest	(23,635,286)	(108,479,459)
Payment of Lease Liabilities	(20,218,268)	(37,373,725)

Net Cash Flows (used in) / provided by Financing Activities	(46,258,003)	148,252,365

FINANCIAL RESULTS (INCLUDING GAIN (LOSS) ON NET MONETARY POSITION) OF CASH AND CASH EQUIVALENTS	(163,189,009)	(51,146,683)

Net Increase (Decrease) in Cash Flow	239,838,492	(87,389,275)
Decrease in cash due to deconsolidation ⁽¹⁾	(5,284,261)	-
Cash and Cash Equivalents at the Beginning of the Year	3,148,272,419	3,401,962,653
Cash and Cash Equivalents at the End of the Period (Note 2.4)	3,382,826,650	3,314,573,378

⁽¹⁾ Corresponds to the deconsolidation of UNIR (see Note 14.a) to these interim condensed consolidated financial statements)

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