Non-Financial Information Statement

2023

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Letter from the Chairperson

Fotografía de Joseph
Joseph Oughourlian Chairperson of PRISA

All of us who make PRISA possible have worked hard in 2023 to remain faithful to our commitment to excellence, responsible management, and good economic performance.

From an ESG point of view, 2023 has been a key year in driving forward PRISA's sustainability strategy, meeting the objectives of the 2022-2025 Sustainability Master Plan, and reinforcing our commitment to social impact, transparent governance, and responsible business management.

Creating value in society and leading growth in the sectors in which we operate are among our top priorities as a company.

All of us who make PRISA possible have worked hard in 2023 to remain faithful to our commitment to excellence, responsible management, and good economic performance. We have done so in a turbulent global context, marked by international events that have had an impact on the business prospects of most sectors of the world economy: the war in Ukraine, the conflict in the Middle East, the slowdown in economic growth, inflationary pressures and rising interest rates, among others.

Despite this scenario, PRISA has achieved good economic performance, exceeding the commitments made to the market at the beginning of 2023. Revenues for the Group as a whole increased by 11%, while EBITDA rose by 32%. This was accompanied by a clear improvement in margins and a very positive cash flow performance. These figures are the result of a magnificent year for both Santillana and PRISA Media. Both businesses continue to be immersed in a major digitalization process that has resulted in a significant increase in the number of subscribers, which now exceeds 350,000 at EL PAIS and reaches 2.8 million at Santillana.

Meanwhile, intense work has been done to reduce the Group's debt. At the beginning of 2023, we successfully issued 130 million euros worth of bonds convertible into newly issued shares of PRISA. In addition, in January 2024, a new bond issue was announced, in this case for 100 million euros. This double operation allows us to improve our financial situation and shows the strong commitment of our shareholders to the Group.

From an ESG point of view, 2023 has been a key year in driving forward PRISA's sustainability strategy, meeting the objectives of the 2022-2025 Sustainability Master Plan, and reinforcing our commitment to social impact, transparent governance, and responsible business management.

Although our sector does not have a major impact on the environment, we are committed to the fight against climate change by reducing our emissions and increasing our consumption of renewable energy. We have designed an Environmental Management Plan that will enable the Group to accelerate its Net Zero roadmap and advance our commitment to the SBTi (Science Based Targets) initiative, the international reference body in this field.

The credibility and trust transmitted by our brands, which generate content and spaces for learning, reflection and dialogue in Spain and Latin America, play a strategic role that has a positive impact on the progress of people and society. Santillana was chosen as one of the most highly valued companies in Latin America, according to the Barometer on the Image of Spain (BIE) of the Elcano Royal Institute. From a pedagogical point of view, it has incorporated sustainability content in almost all of its new educational projects, training 5,000 teachers in this area.

PRISA Media has launched the program Caracol Sostenible, a program on Caracol Radio in Colombia, and has continued to raise awareness of social injustices and inequalities through its content. In the area of inclusion and equity, we have created the Inclusive Advertising Guide, a pioneering initiative in Spain.

Our main awards also highlight the most transformative initiatives in the social and environmental fields. Externally, the Group has been recognized by the UN Global Compact in Spain for promoting the Sustainable Suppliers program in our supply chain.

For us, it is essential to manage the company by exercising transparent governance with our stakeholders that protect what is most valuable: the security and privacy of our users' data, and to do so by promoting a corporate culture based on our Code of Ethics.

We have strengthened diversity in the company's governing bodies and continue to encourage female talent with initiatives such as the Management Development Program aimed at female leadership. Finally, our sustainability performance is enabling us to improve our presence in ESG indices and benchmarking agencies.

Creating value in society and leading growth in the sectors in which we operate are among our top priorities as a company.

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