PROFIT BEFORE TAX OF 28.5M, CASH BALANCE OF 91.5M

PROFIT BEFORE TAX OF 28.5M, CASH BALANCE OF 91.5M Dublin and London 9 March 2018: Independent News & Media PLC (INM ID, INM LN) today announces its full year results for the 12 months ended 31 December 2017. KEY HIGHLIGHTS 1 ( except where stated) 2017 2016 1 Change Total revenue 293.0 323.4-9.4% Profit before tax 2 28.5 41.8-31.8% Operating Margin 2 9.4% 12.4% -300 bps Basic & Diluted EPS 2 1.8c 2.9c -1.1c Cash and Cash Equivalents 91.5 84.8 +6.7 Net Assets 76.1 62.3 +13.8 Total revenues of 293.0m, down 9.4% Total revenues of 293.0m were down 9.4% on the prior year. This was primarily driven by a decline in total advertising revenues of 10.6%, and a decline in circulation revenues of 8.4% which also impacted distribution revenues which were down 9.5%. Within total advertising, publishing advertising revenues declined by 13.0% while digital revenues remained in line with prior year at 15.1m. Digital revenues in line with prior year Digital revenues have remained in line with prior year despite 2016 revenues including a 53 rd week. On a 52 week versus 52 week basis digital revenues have grown by 1.0% year on year. Growth has primarily come from INM s classified businesses, including CarsIreland.ie. Digital advertising revenue has declined due to the move away from direct selling to lower yielding programmatic selling. The Group has seen continued strong growth in the CarsIreland.ie business, with revenues increasing by over 45% on a like for like basis. Profit before tax 2 of 28.5m Profit before tax 2 of 28.5m was down 31.8% on the prior year. This reduction was primarily due to continued revenue challenges and increased libel and legal costs. The revenue challenges were somewhat mitigated by cost savings. The operating margin 2 increases from 9.4% to 11.9% excluding the impact of these increased libel and legal costs. Operating costs 2 265.5m, down 6.2% Operating costs 2 have decreased by 6.2%, notwithstanding the increased libel and legal costs referred to above and in INM s Trading Statements in 2017. Net exceptional charge of 12.1m The Group recorded a total net exceptional charge of 12.1m in 2017, which included: A charge of 12.7m relating to the impairment of the Belfast Telegraph masthead; A charge of 1.8m related to miscellaneous other items including restructuring costs (primarily redundancy costs in the Island of Ireland) and acquisition related expenses; A charge of 1.5m relating to a severance payment to the former CEO; A retirement benefits accounting adjustment of 2.9m; and A gain of 1.0m in relation to the release of an onerous dilapidations provision. Balance sheet strengthened Net assets increased by 13.8m to 76.1m. The cash balance has risen to 91.5m, up 6.7m year on year despite increased libel and legal payments and payments to the retirement benefit obligation schemes of 14.1m, a portion of which was one-off as part of the wind-up agreement. In July 2017, the Group and the Trustees of two of its Republic of Ireland defined benefit pension schemes reached an agreement to commence the wind-up of the schemes. The agreement has brought certainty for the future for both the Group and the scheme members. 1 Results to 31 December 2016 include an extra (53 rd ) week 2 Pre-exceptionals 3 ABC Jul to Dec 2017 4 TGI NI 2017 5 Per Adobe Analytics 6 Per Google Analytics 1

Group cash balance of 91.5m The Group ended the year with a cash balance of 91.5m. The increase of 6.7m year on year was generated primarily from the EBITDA performance, somewhat offset by cash outflows relating to retirement benefit obligations, movement in provisions/working capital, exceptional expenditure, capital expenditure and corporation tax payments. The movement in provisions/working capital is impacted by two significant trade debtor balances totalling 2.2m which were both subsequently received post year end. Governance In 2017, INM appointed a new CEO and subsequently in March 2018, four new non-executive directors to the Board. A new Chairman was appointed by the Board in March 2018. These appointments bring a wealth of experience and expertise in the media industry and the wider corporate world, further strengthening and supporting INM's Board to ensure the Group is equipped to meet the demands of the rapidly changing industry. These appointments also ensure that the Board and its key committees meet the composition recommendations of the UK Corporate Governance Code. Separately, the Group continues to comply with requirements from the ODCE and is taking all necessary steps to meet the ODCE s requests. Strategic initiatives The Group continues to actively review potential partnership and acquisition opportunities that diversify the Group s revenues. For example, in 2017 the Group in partnership with Caltray Limited launched Offscript, a producer of digital video content for branded advertising. Additionally, an agreement was signed in November 2017 to acquire the trading business, Supreme Stationery, and certain assets of Hegadon Limited. The Board and Management are currently collaborating closely with EY on the development of a strategic plan which will provide a roadmap for the future. This plan will involve reshaping the business model to address the challenges faced by the industry. Capital reduction The Board has commenced work to progress the Capital Reduction proposal which was approved by shareholders at the extraordinary general meeting of the Company held on 5 December 2016, and intends to seek, for good corporate governance reasons, shareholders confirmation of this proposed capital reduction at the forthcoming AGM in May. Dividend The Directors are not proposing a dividend for 2017. Outlook The outlook for 2018 is for continued difficult trading conditions within the media sector as key revenues - advertising, circulation and distribution - face further declines. INM s digital advertising revenues within the Irish market will continue to be challenged by the domination of global platforms such as Facebook and Google. EBIT from the underlying business is expected to perform in line with market expectations. The Group intends to make a significant investment to reshape the business and to deliver the strategic plan. 1 Results to 31 December 2016 include an extra (53 rd ) week 2 Pre-exceptionals 3 ABC Jul to Dec 2017 4 TGI NI 2017 5 Per Adobe Analytics 6 Per Google Analytics 2

STATEMENTS Mr Murdoch MacLennan, Chairman, Independent News & Media PLC, said: I have just taken on the role of Chairman of the Group in the last few days but I am well aware of the challenges currently facing news and online publishers all over the world. While our Group experienced difficult trading conditions over the course of 2017, I am confident that a robust development strategy is being put in place, with the assistance of EY, which will open a pathway for us to identify a successful future for our business. INM s focus over the coming year will be on implementing that new strategy, while at the same time protecting our existing core print and online business. Reassuringly, the Group has maintained its leadership position in the print publishing market and with independent.ie we have Ireland s most trusted and most visited news website. I would like to sincerely thank the Board, Management and every employee in INM for their contribution to the Group in 2017 and their ongoing commitment and support as we seek to make further progress in 2018 and the years ahead. Based on the plans I have seen since joining the Board, I believe that we can look forward to the future with both confidence and optimism. Mr Michael Doorly, Group Chief Executive Officer, Independent News & Media PLC, said: The full year results for 2017 clearly demonstrate the major challenges facing our Group and our industry. Despite these challenges, the Group recorded a PBT of 28.5 million and has a cash balance of 91.5 million. The Board and Management, with the assistance of consultants EY, are currently reviewing all the Group s operations to develop a clear strategy for future growth. The establishment of an implementation team will be central to the successful delivery of this strategic plan and will involve investment in people and technology. I would like to thank the staff of INM for their continued commitment and resolve in the face of these challenging times. They have enthusiastically engaged with Management in developing our new strategy and will play a key role in successfully implementing it over the coming months and years. 1 Results to 31 December 2016 include an extra (53 rd ) week 2 Pre-exceptionals 3 ABC Jul to Dec 2017 4 TGI NI 2017 5 Per Adobe Analytics 6 Per Google Analytics 3

OPERATIONAL HIGHLIGHTS Publishing performance The Irish Independent continues to lead the quality daily market with an ABC 3 of 90,107, maintaining its No.1 position. It has over 50% of the daily quality market in the Republic of Ireland and sells more copies per day on average than The Irish Times and Irish Examiner combined. The Sunday Independent, which recorded an ABC 3 of 178,322, has c.63% of the Sunday quality market and remains by far the biggest selling quality Sunday newspaper, while also providing the largest regular audience on the island of Ireland across any advertising platform. The Sunday World is the nation s largest selling tabloid newspaper with an ABC 3 of 133,946 (c.44% of the Sunday popular market). The paper s award-winning crime reporting team and the glossy magazine maintain the paper s leading market position in the highly competitive Sunday tabloid category. The Herald holds the position as the No.1 paper with Dubliners with an ABC 3 of 36,097. The newspaper benefits from local news and crime related news and has been redesigned with an improved sports and racing package. INM Regional newspapers are market leaders in every region where they publish (Kerry, Wexford, Sligo and Drogheda/Dundalk). Strong revenue performance in 2017 in both circulation and advertising has been driven by a hyper local news agenda. The Star is one of Ireland s most popular daily tabloid newspapers with an ABC 3 of 48,687 and 23% of the daily popular market. In Northern Ireland the Belfast Telegraph, with a recorded daily ABC 3 of 36,403, continues to hold a strong No.1 position within the local daily newspaper market and was the only newspaper to show year on year readership growth with 155,000 4 daily readers. Sunday Life with a recorded ABC 3 of 32,892 and a weekly readership of 150,000 4 outperformed all local competitor titles. With a combined weekly readership of almost one third of the NI population, INM titles hold a commanding position within the NI market. While Newspread s (distribution) revenues have declined due to the continued contraction of the circulation market, its diversification into adjacent categories remains successful delivering a healthy operating margin of 4.9%. In early 2018, Newspread acquired the trading business and certain assets of Hegadon Limited giving it a +20% share of the stationery retail market. Profits from this acquisition will start to flow during 2018. Digital performance In a challenged advertising marketplace for news publishers, digital revenues across the Group grew slightly on a like for like basis. This growth was fuelled by the continued expansion of the classified platforms such as CarsIreland.ie. Audience on the Group's flagship news platform, independent.ie, grew by over 23% 5 year on year with an average of over 1 million unique users on the platform each day throughout the second half of the year. Our comprehensive real time coverage of major news events continues to be a significant competitive differentiator. For example, the live coverage of the Ophelia storm in October resulted in over 2.5 million people visiting the site in a single 24 hour period. 1 Results to 31 December 2016 include an extra (53 rd ) week 2 Pre-exceptionals 3 ABC Jul to Dec 2017 4 TGI NI 2017 5 Per Adobe Analytics 6 Per Google Analytics 4

Building on the successful launch of the FarmIreland.ie vertical, we continued to identify and build out niche audience propositions in 2017. The Group launched TheVow.ie weddings vertical and relaunched The Vow magazine during the year. The Vow offers a unique proposition to the over 22,000 couples planning their weddings each year in Ireland with advice and inspiration on everything from the initial proposal through to choosing a venue, fashion, beauty and finances. For suppliers to the wedding sector, The Vow offers a premium environment to showcase their offering to a highly engaged audience. Belfasttelegraph.co.uk is the leading commercial news website in Northern Ireland, publishing content across desktop, mobile and on app. Further investment in editorial content delivered traffic and commercial growth through 2017. Traffic grew by 7% with the site now delivering over 16m 6 page impressions per month, driven by a 15% growth in Mobile traffic with News and Business up 20% and 30% respectively. As a trusted news source and with a wide portfolio of advertising solutions the site provides the strongest commercial Digital platform in Northern Ireland. The leading classified sites of nijobfinder.co.uk and PropertyNews.com also enjoyed further investment with both sites being relaunched during the year. With a fresh new design and a number of new features to enhance user experience both sites have seen a dramatic rise in applications and lead generation across Recruitment and Property respectively with job applications through the mobile platform up over 40% year on year. With 312,000 5 monthly unique users and 3 times more social followers on Facebook than the nearest competitor, nijobfinder.co.uk has a powerful position in the local recruitment market. Visits and unique users have also risen to PropertyNews.com (7% and 5% respectively) with a concerted focus on delivering quality leads to estate agents. CarsIreland.ie, which was fully acquired by the Group in 2016, grew its revenue by over 45% while also increasing its operating margin. It is now firmly established as one of the leading classified platforms in the Republic of Ireland for motor vehicles. The company is investing significantly in innovation using open source technology and cloud based data solutions in order to drive future value. Consumers are increasingly moving online to inform themselves about the purchase of a car and CarsIreland.ie is well placed to benefit from this behavioural shift. Responding to the growing demands from brands for higher quality digital video content, INM partnered with Caltray Limited to establish a joint venture called Offscript. This new partnership, which was cleared by the CCPC in October 2017, aims to disrupt the market by bringing broadcast quality content production to digital-first channels. Working with clients including Vodafone, Ulster Bank, Failte Ireland and the British and Irish Trade Alliance in the UK, Offscript met their revenue target in 2017. Offscript officially launched to the media industry in February 2018. SUBSEQUENT EVENTS In January 2018, the Group purchased the trading business and certain assets of Hegadon Limited following approval by the CCPC. In March 2018, four new non-executive directors and a new Chairman were appointed by the Board. There were no other events since the year end that would require disclosure or adjustment in the financial statements. - Ends 1 Results to 31 December 2016 include an extra (53 rd ) week 2 Pre-exceptionals 3 ABC Jul to Dec 2017 4 TGI NI 2017 5 Per Adobe Analytics 6 Per Google Analytics 5

For further information, contact: MEDIA Brian Bell Wilson Hartnell +353 1 669 0030 (office) brian.bell@ogilvy.com INVESTORS & ANALYSTS Michael Doorly Group Chief Executive Officer Independent News & Media PLC +353 1 466 3200 Michael.Doorly@inmplc.com Ryan Preston Group Chief Financial Officer Independent News & Media PLC +353 1 466 3200 ryan.preston@inmplc.com NOTE REGARDING FORWARD-LOOKING STATEMENTS Some statements in this announcement are forward-looking. They represent our expectations for our business and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond our control, our actual results or performance, may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this document and no obligation is undertaken, save as required by law or by the Listing Rules of the Irish Stock Exchange and/or the UK Listing Authority, to reflect new information, future events or otherwise. ABOUT INDEPENDENT NEWS & MEDIA PLC INM is a market-leading media Group in the Republic of Ireland and Northern Ireland, with a strong newspaper and digital presence. INM is the largest wholesale newspaper distributor on the island of Ireland. It manages gross assets of 204.8m and employs approximately 800 people. 6

INDEPENDENT NEWS & MEDIA PLC GROUP INCOME STATEMENT Year Ended 31 December 2017 (Unaudited) Year Ended 31 December 2016* (Audited) Before Before Exceptional Items Exceptional Items ** Total Exceptional Items Exceptional Items ** Total Notes Revenue 2 293.0-293.0 323.4-323.4 Operating (costs)/income (265.5) (12.0) (277.5) (283.2) 12.0 (271.2) Operating profit/(loss) 3 27.5 (12.0) 15.5 40.2 12.0 52.2 Share of results of associates and joint ventures 9 0.9 (0.1) 0.8 1.2-1.2 28.4 (12.1) 16.3 41.4 12.0 53.4 Finance income/(expense): - Finance income 6 0.1-0.1 0.4 2.9 3.3 - Finance expense 6 - - - - (1.5) (1.5) Profit/(loss) before taxation 28.5 (12.1) 16.4 41.8 13.4 55.2 Taxation charge 7 (3.9) - (3.9) (1.6) (3.3) (4.9) Profit/(loss) for the year 24.6 (12.1) 12.5 40.2 10.1 50.3 Profit attributable to: Non-controlling interests - - - - - - Equity holders of the Company 24.6 (12.1) 12.5 40.2 10.1 50.3 24.6 (12.1) 12.5 40.2 10.1 50.3 Earnings per ordinary share (cent) Basic 8 0.9c 3.6c Diluted 8 0.9c 3.6c * Results to 31 December 2016 include an extra (53 rd ) week. ** See note 4. 7

GROUP STATEMENT OF COMPREHENSIVE INCOME Year Ended Year Ended 31 December 31 December 2017 2016* (Unaudited) (Audited) Profit for the year 12.5 50.3 Other comprehensive income/(expense) Items that will never be reclassified to profit or loss: Retirement benefit obligations: - Remeasurement gains/(losses)** 2.4 (32.1) - Related movement on deferred tax asset (note 15) (0.2) 2.6 2.2 (29.5) Items that are or may be reclassified subsequently to profit or loss: Currency translation adjustments subsidiaries (0.5) (3.1) Currency translation adjustments reclassification on disposal of subsidiary - (0.6) Profits relating to cash flow hedges*** - 0.1 (0.5) (3.6) Other comprehensive income/(expense) for the year, net of tax 1.7 (33.1) Total comprehensive income for the year 14.2 17.2 Total comprehensive income attributable to: Non-controlling interests - - Equity holders of the Company 14.2 17.2 14.2 17.2 * Results to 31 December 2016 include an extra (53 rd ) week. ** In 2016, the reduction in shareholders equity attributable to the INIL and MSL defined benefit pension plans amounted to approximately 6 million mainly comprising a deficit on remeasurement of the defined benefit liabilities in the period from 1 January to 7 November of 17.6 million recognised in OCI and a credit to the Group Income Statement of 11.8 million on de-recognition of the defined benefit plans on 7 November 2016. *** Relates to a charge of 0.1m (2016: nil) due to cashflow hedges maturing during the year offset by a credit of 0.1m (2016: 0.1m) relating to cashflow hedges outstanding at the end of the year. 8

GROUP STATEMENT OF FINANCIAL POSITION 31 December 2017 (Unaudited) 31 December 2016 (Audited) Notes Assets Non-Current Assets Intangible assets 14 33.6 48.2 Property, plant and equipment 12 40.1 41.6 Investments in associates and joint ventures 9 1.7 1.5 Deferred tax assets 15 7.7 12.1 Available-for-sale financial assets 0.2 0.2 83.3 103.6 Current Assets Inventories 2.8 4.0 Trade and other receivables 24.7 23.7 Derivative financial instruments 0.1 0.1 Corporation tax recoverable 2.4 0.3 Cash and cash equivalents 13 91.5 84.8 121.5 112.9 Total Assets 204.8 216.5 Liabilities Current Liabilities Trade and other payables 39.1 43.7 Provisions 9.5 10.5 48.6 54.2 Non-Current Liabilities Retirement benefit obligations 11 77.5 97.3 Deferred taxation liabilities 15 1.4 1.4 Other payables 0.7 0.8 Provisions 0.5 0.5 80.1 100.0 Total Liabilities 128.7 154.2 Net Assets 76.1 62.3 Equity Equity Attributable to Company s Equity Holders Share capital 10 13.9 13.9 Share premium 767.0 767.0 Other reserves 316.6 318.0 Retained losses (1,021.4) (1,036.6) Total Equity 76.1 62.3 9

GROUP STATEMENT OF CHANGES IN EQUITY (2017 Unaudited; 2016 Audited) Group Share Capital Share Premium Share Based Payment Reserve Other Undenominated Capital Currency Translation Reserve Other* Other Equity Reserve** Retained Losses Equity Interest of Parent Non- Controlling Interests*** Total At 1 January 2016 13.9 767.0 0.4 413.2 (92.6) - - (1,057.4) 44.5-44.5 Total Comprehensive (Expense)/Income for the year Profit for the year - - - - - - - 50.3 50.3-50.3 Other comprehensive (expense)/income**** - - - - (3.7) 0.1 - (29.5) (33.1) - (33.1) Total Comprehensive (Expense)/Income for the year - - - - (3.7) 0.1-20.8 17.2-17.2 Attributable to owners of the Company, recognised directly in equity Equity settled share based payments - - 0.6 - - - - - 0.6-0.6 Total attributable to owners of the Company - - 0.6 - - - - - 0.6-0.6 At 1 January 2017 13.9 767.0 1.0 413.2 (96.3) 0.1 - (1,036.6) 62.3-62.3 Total Comprehensive (Expense)/Income for the year Profit for the year - - - - - - - 12.5 12.5-12.5 Other comprehensive (expense)/income**** - - - - (0.5) - - 2.2 1.7-1.7 Total Comprehensive (Expense)/Income for the year - - - - (0.5) - - 14.7 14.2-14.2 Attributable to owners of the Company, recognised directly in equity Equity settled share based payments charge/(credit) - - - - - - - - - - - Equity settled share based payments transfer - - (0.5) - - - - 0.5 - - - Put option on Subsidiary - - - - - - (0.4) - (0.4) - (0.4) Total attributable to owners of the Company - - (0.5) - - - (0.4) 0.5 (0.4) - (0.4) At 31 December 2017 13.9 767.0 0.5 413.2 (96.8) 0.1 (0.4) (1,021.4) 76.1-76.1 * 2016: A 0.1m movement relates to a movement on cash flow hedging reserve (see Group Statement of Comprehensive Income for further information). ** Other equity reserve at 31 December 2017 related to a put option over the non-controlling interest on a 51% owned subsidiary. *** Profit for the year in 2017 for non-controlling interests of nil (2016: nil) relates to a profit of 0.1m attributable to the non-controlling interest in a 51% owned subsidiary offset by a loss of 0.1m attributable to the noncontrolling interest in a 70% owned subsidiary. **** Details can be found in the Group Statement of Comprehensive Income. 10

GROUP CASH FLOW STATEMENT Year Ended 31 December 2017 (Unaudited) Year Ended 31 December 2017 (Unaudited) Year Ended 31 December 2016* (Audited) Year Ended 31 December 2016* (Audited) Profit for the year 12.5 50.3 Exceptional items 12.1 (10.1) Profit for the year before exceptional items 24.6 40.2 Share of results of associates and joint ventures (0.9) (1.2) Finance income (0.1) (0.4) Tax charge 3.9 1.6 Operating profit before exceptional items 27.5 40.2 Depreciation/amortisation 6.3 6.4 Earnings Before Interest, Tax, Depreciation and Amortisation 33.8 46.6 Share based payment charge - 0.6 Movement in provisions/working capital (5.0) (2.3) Retirement benefit obligations deficit repair/special contribution payments** (14.1) (7.7) Defined benefit retirement benefit obligations charge recognised in the Group Income Statement 1.1 2.3 Cash generated from operations (before cash exceptional items) 15.8 39.5 Exceptional expenditure (see note 4) (3.9) (8.2) Cash generated from operations 11.9 31.3 Income tax paid (2.0) (3.6) Cash generated by operating activities 9.9 27.7 Cash flows from investing activities Dividends received from associates and joint ventures 0.6 1.0 Purchases of property, plant and equipment (1.7) (2.3) Purchases of intangible assets (1.4) (3.4) Proceeds from sale of property, plant and equipment - 7.6 Proceeds from disposal of available-for-sale financial assets - 0.3 Purchases of/advances to associates and joint ventures - (0.3) Interest received 0.1 0.1 Acquisition of subsidiary, net of cash acquired - (3.0) Net cash used in investing activities (2.4) - 11

GROUP CASH FLOW STATEMENT (continued) Year Ended 31 December 2017 (Unaudited) Year Ended 31 December 2017 (Unaudited) Year Ended 31 December 2016* (Audited) Year Ended 31 December 2016* (Audited) Cash flows from financing activities Interest paid - - Net cash used in financing activities - - Increase in cash and cash equivalents 7.5 27.7 Foreign exchange losses (0.8) (2.6) Net increase in cash and cash equivalents 6.7 25.1 Balance at beginning of the year 84.8 59.7 Cash and cash equivalents at end of the year 91.5 84.8 * Results to 31 December 2016 include an extra (53 rd ) week. ** Comprises 1.4m of deficit repair payments in respect of defined benefit pension schemes and 12.7m of special contributions in respect of defined contribution pension schemes. 12

NOTES TO THE FINANCIAL INFORMATION 1. Basis of Preparation of Financial Information under IFRS Reporting Entity and Basis of Accounting Independent News & Media PLC ( the Company ) is a company domiciled in Ireland. These condensed preliminary Group financial statements as at and for the twelve months ended 31 December 2017 comprise the financial statements of the Company and its subsidiaries (together referred to as the Group ) and the Group s interest in associates and joint ventures. This financial information has been prepared on the going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due during the 12 months from the date of approval of the 2017 Annual Report, the time period that the Directors have considered in evaluating the appropriateness of the going concern basis. Financial Information The financial information in this announcement does not constitute the statutory financial statements of the Company and the Group, a copy of which is required to be annexed to the Company's annual return to the Companies Registration Office in Ireland. A copy of the statutory financial statements in respect of the year ended 31 December 2017 will be annexed to the Company's annual return for 2017. The annual report and financial statements will be approved by the Board of Directors by 30 April 2018. Accordingly, this financial information is unaudited. A copy of the statutory financial statements required to be annexed to the Company's annual return in respect of the year ended 31 December 2016 has been annexed to the Company s annual return for 2016 to the Companies Registration Office. The audit opinion on these financial statements was unqualified. The 2017 statutory financial statements of the Company will be available on the Company s website inmplc.com as of 30 April 2018. Consistent with prior years, the full financial statements for the year ended 31 December 2017 and the audit report thereon will be completed and available to all shareholders at least 20 working days before the AGM. General Information The Group is required to present its annual consolidated financial statements for the year ended 31 December 2017 in accordance with EU adopted International Financial Reporting Standards ( IFRS ) and with those parts of the Companies Act 2014, applicable to companies reporting under IFRS. This financial information comprises the Group Statement of Financial Position, Group Income Statement, Group Cash Flow Statement, Group Statement of Comprehensive Income, Group Statement of Changes in Equity and selected notes for the years ended 31 December 2017 and 31 December 2016. This financial information for the years ended 31 December 2017 and 31 December 2016 have been prepared in accordance with the Listing Rules of the Irish Stock Exchange. Measurement of Fair Values A number of the Group's accounting policies and disclosures require the measurement at fair values, for both financial and non-financial assets and liabilities. The Group regularly reviews significant unobservable inputs and valuation adjustments. Significant valuation issues are reported to the Group's Audit and Risk Committee. When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; - Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 13

1. Basis of Preparation of Financial Information under IFRS (continued) Measurement of Fair Values (continued) If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values is included in the following notes: - Note 5 - financial instruments - Note 16 - share-based payment arrangements; and - Note 17 - acquisition of subsidiary. Except as described below, the accounting policies and methods of computation and presentation adopted in the preparation of this financial information are consistent with those applied in the Annual Report for the year ended 31 December 2016 and are described in those financial statements on pages 115 to 132. The Group has consistently applied its accounting policies to all years presented in these consolidated financial statements. The following new and amended standards and interpretations are effective for the Group for the first time for the financial year beginning 1 January 2017 or later as indicated. Disclosure initiative (Amendments to IAS 7) Recognition of deferred tax assets for unrealised losses (Amendments to IAS 12) IFRS 9: Financial Instruments* IFRS 15: Revenue from contracts with customers* Amendments to IFRS 2: Classification and measurement of share-based payment transactions* Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts* Amendments to IAS 40: Transfers of Investment Property* Annual Improvements to IFRS 2014-2016 Cycle - various standards (Amendments to IFRS 1 and IAS 28)* IFRIC 22: Foreign Currency Transactions and Advance Consideration* IFRS 16: Leases** IFRIC 23: Uncertainty over Income Tax Treatments** IFRS 17: Insurance Contracts. *** The aforementioned did not have a material impact on the Group. * Amendments are effective for annual period commencing after 1 January 2018. ** Amendments are effective for annual period commencing after 1 January 2019. *** Amendments are effective for annual period commencing after 1 January 2021. Estimated impact of the adoption of IFRS 9, IFRS 15 and IFRS 16 The following new or amended standards and interpretations that are mandatory for future periods will be applicable to the Group: IFRS 9 Financial Instruments 1 January 2018 IFRS 15 Revenue from contracts with customers 1 January 2018 IFRS 16 Leases 1 January 2019 The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet affective. The impact of these new or amended standards and interpretations has been considered as follows: 14

1. Basis of Preparation of Financial Information under IFRS (continued) Estimated impact of the adoption of IFRS 9 The Group is required to adopt IFRS 9 Financial Instruments from 1 January 2018. IFRS 9 Financial Instruments sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. The standard replaces IAS 39 Financial Instruments: Recognition and Measurement. The Group has substantially completed its assessment of the estimated impact that initial application of IFRS 9 will have on the consolidated financial statements. Classification of financial assets and financial liabilities Based on its assessment, the Group concludes that the classification requirements will not have a material impact on any of its accounting balances. Impairment Financial assets IFRS 9 requires the Group to record expected credit losses on all of its trade receivables, either on a 12 month or lifetime basis. The Group will apply the simplified approach and record lifetime expected losses on all trade receivables. The Group has determined that due to the nature of its receivables, the impact of IFRS 9 will not significantly impact the provision for bad debts. Estimated impact of the adoption of IFRS 15 The Group is required to adopt IFRS 15 Revenue from contracts with customers from 1 January 2018. IFRS 15 establishes a comprehensive framework for determining whether, how much, and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18 revenue, IAS 11 Construction contracts and IFRIC 13 Customer Loyalty Programmes. The Group is involved in the sale of advertising, the sale of print and digital media and the provision of digital, printing and distribution services. Revenue from the provision of these services to customers is measured at the fair value of the consideration received or receivable (excluding sales taxes). The Group has reviewed the requirements of the new standard and considered those requirements in the context of the Group s revenue generating contracts. The Group has substantially completed its review of the sale of advertising, the sale of print and digital media, and the provision of printing and digital services. Based on the Group s review, it concludes that the new standard will not have a material impact on the net profit or equity of the Group. In respect of distribution revenue services, the Group has yet to conclude its detailed assessment of the principal versus agent accounting treatment of distribution services revenue. However the Group expects that it will not have a material impact on the net profit or equity of the Group. Estimated impact of the adoption of IFRS 16 IFRS 16 Leases replaces existing leases guidance including IAS 17 leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard is effective for annual periods beginning on or after 1 January 2019. Early adoption is permitted for entities that apply IFRS 15 at or before the date of initial application of IFRS 16. IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right of use asset representing its right to use the underlying asset and also a lease liability representing its obligation to make lease payments. There are recognition exemptions for short term leases and leases of low value items. Lessor accounting remains similar to the current standard (i.e. lessors continue to classify leases as finance or operating leases). The Group has commenced an initial assessment of the potential impact on its consolidated financial statements but has not yet completed its detailed assessment. It is expected that the Group will recognise right of use assets and related lease liabilities for its operating leases. 15

1. Basis of Preparation of Financial Information under IFRS (continued) Risks and Uncertainties (i) Market Disruption (Print Media) Maintaining profitability is increasingly challenging due to market disruption (i.e. shift from print media to digital/mobile) negatively affecting newspaper circulation and print advertising revenues giving rise to an increased need to achieve cost reductions to offset this contraction. This is being managed through weekly management meetings, marketing budgets, customer relationship management and cost containment to protect and grow margins. (ii) Digital Revenue Growth Risk A failure to achieve anticipated growth in digital revenues, primarily due to the changes in the digital advertising market for publishers, could significantly impact revenue and profit targets and impede the strategic development of the Group. Weekly and monthly Island of Ireland Publishing revenue/cost reporting, which includes Digital performance, is submitted to Group Finance to support monitoring of investment performance. Significant investment in people and technology to adapt to the shift to programmatic purchasing of display advertising has taken place over the past 12 months. In addition the Group continues to diversify digital revenue streams away from display advertising which is challenged. (iii) Mergers and Acquisitions A failure to identify, execute or properly integrate acquisitions, or other growth opportunities could impact on profit targets and impede the strategic development of the Group. The Group have a mergers and acquisitions team which are supported by Executive management and external specialists where appropriate. All potential acquisitions are subject to an assessment to ascertain the value of the acquisition, and for strategic fit within the Group. (iv) Cyber and Information Security Maintaining adequate IT systems and infrastructure to support growth and development may be affected by: accidental exposure or deliberate theft of sensitive information; loss of service or system availability; significant system changes or upgrades; and cybercrime. IT standards and policies are subject to internal audit and external reviews annually to ensure they are in line with appropriate best practices. Cyber security reviews, including penetration testing and vulnerability assessments are performed throughout the year by specialist third party technical experts to provide independent assurance. Following an in depth cyber and security gap analysis in 2017, INM have hired an Information Security Advisor to bring focus and alignment to INM with respect to cyber security, information risk management and Data Management in order to reduce INM s exposure to security risks. Advancing INM s security posture is a high strategic priority for the INM Group. (v) Data Protection Legislation A breach in data protection legislation could lead to fines as well as reputational and operational damage to INM. The Group have developed a General Data Protection Regulation ( GDPR ) readiness programme with the assistance of a 3 rd party specialist to ensure preparedness for when the new regulation becomes effective in May 2018. Since July 2017 all the Data Protection risks, and their action plans, have been logged within a data protection tool and a GDPR Steering Committee has been appointed to monitor its updates. A GDPR compliant Data Processor Agreement Template is used for new projects and the Data Protection team, developed as part of this programme, oversee its customisation. 16

1. Basis of Preparation of Financial Information under IFRS (continued) Risks and Uncertainties (continued) (vi) IT Disaster Recovery and Business Continuity A significant loss of production capability during a disaster scenario could severely impact revenue and lead to increased costs. Business continuity plans ( BCP ) and IT disaster recovery plans ( DRP ) are in place and tested throughout the year. These plans are subject to review on an annual basis by external specialists. (vii) Talent Management/Succession Planning A failure to attract, retain or develop high calibre talent and management throughout the Group could impact on the attainment of strategic objectives. The Group maintains a constant focus on talent management with structured succession planning, people/management development and remuneration programmes in place. (viii) Litigation Libel action or other types of litigation taken against the INM Group or producing published content that lacks trust and credibility could result in financial loss or reputational damage. Libel action claims are actively managed by Editorial senior management in conjunction with legal support. Collaborative reviews of articles prior to publishing between journalists and legal ensure Editorial Code of Practice is upheld. Rigorous investigations and disciplinary processes are carried out following any proven errors. (ix) Economic and Geopolitical uncertainty General economic conditions can positively or negatively affect the performance of the Group s businesses. The main geographies which the Group are directly exposed to are the Republic of Ireland and Northern Ireland. Following the UK s vote to leave the EU, there is continued uncertainty surrounding the nature, timing and associated trade conditions of the UK exit. Given its proximity and close trading relationship with the Republic of Ireland, the UK s exit from the EU is certain to affect the Irish domestic economy. INM executives monitor the macroeconomic and geopolitical environment by way of regular analysis of business performance through financial results to highlight early trends and impacts from economic and geopolitical uncertainty. (x) Compliance with laws and regulations Increasing regulation, including in the areas of Corporate Governance such as director s duties and director s compliance statement requires increased focus and resources to ensure the Group is compliant with all applicable laws and regulations. Failure to comply with all relevant laws and regulations could result in financial penalties and reputational damage. The Group manages compliance with laws and regulations through the following: Changes in laws and regulations are monitored and potential impacts discussed with relevant management team members, Board, or sub-committees as appropriate. Professional services are retained to support the Group in key compliance areas, such as Tax, Corporate Governance and Company Secretarial duties. Developments in the legal and regulatory landscape are reviewed by the Audit & Risk Committee. Group-wide policies are implemented where required to address new legislation and regulation. 17

2. Revenue An analysis of the Group s revenue for the year is as follows: 2017 2016 Newspaper advertising revenues 55.6 63.9 Online revenues 15.1 15.1 Revenue from sale of newspapers and magazines 87.7 95.8 Revenue from distribution/commercial printing activities 134.6 148.6 293.0 323.4 3. Segmental Reporting A number of operating activities are aggregated into one operating segment on the basis that they exhibit similar long-term financial performance as they have similar economic characteristics and the activities are similar in each of the following respects: the nature of the products and services; the nature of the production processes; the type or class of customer for their products and services; and the methods used to distribute their products or provide their services. The Chief Operating Decision Maker ( CODM ) reviews and considers management information in respect of the Island of Ireland Publishing operating segment. The key performance measure, that is reviewed for this segment is operating profit/(loss) before exceptional items. Exceptional items are reviewed at Group level across different categories and appear separately from the key performance measure reviewed by the CODM. Interest income and expense, share of results of associates and joint ventures and taxation were reviewed and considered by the CODM at Group level only. The Group continued to report its revenues and operating profit before exceptional items by geographical areas with a further analysis of the geographical areas by class of business also provided. 18

3. Segmental Reporting (continued) Operating Profit/(Loss) Revenue (3 rd Party) (Before Exceptional Items) 2017 2017 2016 2016 2017 2017 2016 2016 Island of Ireland Publishing 293.0 323.4 36.3 46.6 Central Costs - - (8.8) (6.4) Total operations 293.0 323.4 27.5 40.2 Profit (including exceptionals) 2017 2016 Total operating profit before exceptional items 27.5 40.2 Operating exceptionals (12.0) 12.0 Share of results of associates and joint ventures (including exceptionals) 0.8 1.2 Net finance income (including exceptionals) 0.1 1.8 Taxation charge (including exceptionals) (3.9) (4.9) Profit for the year (including exceptionals) 12.5 50.3 19

4. Exceptional Items Exceptional items are those items of income and expense that the Group considers are material and/or of such a nature that their separate disclosure is relevant to a better understanding of the Group s financial performance. Included in profit/(loss) before taxation are the following: 2017 2016 Restructuring credit (i) 0.7 13.8 Impairments (ii) (12.7) (1.8) (12.0) 12.0 Share of associates and joint ventures exceptional items (net of tax and non controlling interests) (iii) (0.1) - Exceptional finance income (note 6) (iv) - 2.9 Exceptional finance expense (note 6) (v) - (1.5) (12.1) 13.4 Exceptional tax charge (note 7) (vi) - (3.3) Exceptional items net of taxation (12.1) 10.1 Total - exceptional items net of taxation and non-controlling interests* (12.1) 10.1 * Of the exceptional expense in 2017 of 12.1m, 3.9m is shown as an exceptional expenditure outflow in the Group Cash Flow Statement and primarily relates to redundancy and restructuring costs. Of the exceptional gain of 10.1m in 2016, 8.2m is shown as an exceptional expenditure outflow in the Group Cash Flow Statement and primarily relates to redundancy and miscellaneous restructuring costs (proceeds received from the sale of property, plant and equipment are disclosed separately in the Group Cash Flow Statement). (i) 2017 Primarily relates to the following: (a) A retirement benefits accounting adjustment of 2.9m relating to the finalisation of the de-recognition of two of the Group s Republic of Ireland defined benefit schemes on 7th November 2016; (b) A gain of 1.0m in relation to the release of an onerous dilapidations provision; (c) A charge of 1.5m relating to a severance payment to the former CEO; (d) A charge of 1.2m related to miscellaneous restructuring costs, primarily redundancy costs in the Island of Ireland; and (e) A charge of 0.5m for acquisition related expenses. 2016 Primarily relates to the following: (a) A retirement benefits accounting adjustment of 11.8m (see note 11 for further information) with 0.4m of related professional fees. In 2016, the reduction in shareholders equity attributable to the INIL and MSL defined benefit pension plans amounted to approximately 6 million mainly comprising a deficit on re-measurement of the defined benefit liabilities in the period from 1 January to 7 November of 17.6 million recognised in OCI and a credit to the Group Income Statement of 11.8 million on de-recognition of the defined benefit plans on 7 November 2016; (b) A gain on the disposal of property, plant and equipment in the Island of Ireland of 5.8m; (c) A gain of 0.6m for a currency translation adjustment due to the disposal of two Australian subsidiaries; (d) A charge of 3.3m related to miscellaneous restructuring costs, primarily redundancy costs in the Island of Ireland; and (e) A charge of 0.7m (of which 0.2m related to Digital Odyssey Limited) for acquisition related expenses. 20

4. Exceptional Items (continued) (ii) 2017 A charge of 12.7m relating to the impairment of the Belfast Telegraph masthead (see note 14). 2016 A charge of 1.8m relating to miscellaneous impairments and write-offs of property, plant and equipment in the Island of Ireland to its recoverable amount, primarily as a result of a review of the distribution business. The impairment amount was quantified by the use of a third party valuation report. (iii) 2017 The share of associates and joint ventures exceptional items (net of tax and non-controlling interests) charge of 0.1m relates to redundancies in Independent Star Limited. (iv) 2016 Relates to a gain arising from the remeasurement to fair value of the Group s pre-existing 50% interest in Digital Odyssey Limited following the acquisition of the remaining 50% of the shares and voting rights in that entity (see note 17). (v) 2016 Relates to a charge of 1.5m for the write down of two available-for-sale financial assets deemed not recoverable. (vi) 2017 The exceptional tax charge of nil includes a reduction in the deferred tax liability of 2.2m following the impairment of intangible assets offset by a related reduction in the Group s deferred tax amount of 2.2m. Exceptional tax in 2017 also relates to a deferred tax charge of 0.4m due to the retirement benefits accounting adjustment relating to the derecognition of two of the Group s Republic of Ireland defined benefit schemes on 7th November 2016 and a current tax credit of 0.4m arising on exceptional expenses in the Republic of Ireland. 2016 The exceptional tax charge in 2016 primarily relates to a tax charge of 2.1m arising on the release of a deferred tax asset (see note 15 for further information), a tax charge of 1.5m arising due to the retirement benefit accounting adjustment (see note 11 for further information) and a tax credit of 0.3m arising on exceptional expenses in the Republic of Ireland. 5. Fair Value The fair values of quoted available-for-sale financial assets and derivative financial instruments are measured using market values. Unquoted available-for-sale financial assets and derivatives are measured using valuation techniques. The carrying amount of non interest bearing financial assets and financial liabilities and cash and cash equivalents approximates their fair values. The Group has not disclosed the fair value of certain financial instruments such as other payables, short-term receivables and short term payables because their carrying amounts are a reasonable approximation of fair value. The available-for-sale financial assets of 0.2m (2016: 0.2m) are measured at Level 3 of the fair value hierarchy. The derivative financial instruments cash flow hedges of 0.1m (2016: 0.1m) are measured at Level 2 of the fair value hierarchy. 21