ITV plc Annual Report and Accounts 2023 1 S 1 T CONTENTS KEY FINANCIALS R A T E G I OUR purpose STRATEGIC REPORT Group external revenue Costsavings C R Key Financials 1 E P O We entertain and connect with An Introduction to ITV R millions of people in the UK and and its Business Model 2 £3,624m £24m T globally, reflecting and shaping InvestorProposition 4 -3% (2022: £3,728m) (2022:£23m) culture and building brands with Chair’s Statement 5 brilliant content and creativity. MORE Our Key Stakeholders 6 Group adjusted EBITA Net debt Market Review 7 Chief Executive’s Statement 8 OUR 2026 vision Our Strategy 10 £489m £553m Key Performance Indicators 14 -32% (2022: £717m) (2022: £623m) To be a leader in UK advertiser- Operating and Financial funded streaming and an expanding PerformanceReview 18 THAN global force in content. Social Purpose 32 Adjusted EPS Profit to cash conversion Our People 40 Alternative Performance Measures 42 7.8p 102% Finance Review 45 Non-Financial and Sustainability -41% (2022: 13.2p) (2022: 75%) InformationStatement 52 Risks and Uncertainties 55 Statutory operating profit Leverage Climate Related TV Financial Disclosures 65 £238m 1.0x Long-termViability StatementDisclosure 72 -54% (2022: £519m) (2022: 0.8x) GOVERNANCE trategy Chair’s Governance Statement 75 Statutory EPS Dividend OUR s Board of Directors 77 Our strategy is focused on three strategic pillars illustrated below. 2023 was ManagementBoard 79 the year of peak investment for Streaming, which together with the successful Corporate Governance 81 5.2p 5.0p execution of our strategy and the efficiencies delivered to date have made ITV more robust. ITV has a leading, scaled, global Studios business, a high growth expand StakeholderEngagement 84 -51% (2022: 10.7p) (2022: 5.0p) Streaming service and a cash generative linear advertising business. This ensures Our Commitment to Section 172(1) 92 that we are well placed to grow profits from here as we continue to drive STUDIOS Nominations Committee Report 103 material efficiencies, invest behind our Audit and Risk Committee Report 106 strategic priorities and deliver Further expanding by genre, FURTHER READING returns to shareholders. geography and customer and Remuneration Report 117 Read more growing faster than market Directors’ Report 143 on page 10 FINANCIALSTATEMENTS supercharge Financial Statements 148 STREAMING IndependentAuditor’sReport 149 Primary Statements 156 Driving digital viewing and ITV plc Company Financial Social Purpose Impact Report Pay Gap Report revenue through ITVX and Planet V, Statements 229 Read more at Read more at ITV’s leading addressable Subsidiary undertakings and advertising platform itvplc.com/socialpurpose itvplc.com/investors/governance investments 238 Vertically ADDITIONAL INFORMATION Integrated Glossary 243 ALTERNATIVEPERFORMANCE MEASURES Producer Broadcaster Strategic Report and Streamer The Strategic Report explains in detail how we have Company, of its position in the markets within which it performed this year and sets out, amongst other things, operates, and of its prospects. In setting out the Company’s a fair review of the business, a balanced and comprehensive main risks and uncertainties and throughout, this report analysis of our performance, the use of key performance and accounts contains statements that are based on indicators to explain the progress we have made, knowledge and information available at the date of a description of the principal risks and uncertainties preparation of the Strategic Report, and what are believed facing the Company, and an indication of potential to be reasonable judgements, and therefore cannot be future developments. considered as indications of likelihood or certainty. The Strategic Report is prepared in line with the relevant A wide range of factors may cause the actual outcomes and provisions of the Companies Act 2006 and the 2018 results to differ materially from those contained within, or Corporate Governance Code (Code) and the Company implied by, the various forward-looking statements in this optimise has had regard to the guidance issued by the Financial Annual Report and Accounts. None of these statements Reporting Council. It is intended to provide shareholders should be construed as a profit forecast. BROADCAST ONLINE and other stakeholders with a better understanding of the We maintain a corporate website 1. We use both statutory and adjusted measures in our Strategic Report. The latter, in management’s view, Digitally transforming as we continue to containing our financial results and a reflects the underlying performance of the business and provides a more meaningful comparison of how attract commercial broadcast audiences wide range of information of interest to the business is managed and measured day-to-day. A full reconciliation between our statutory and adjusted of unparalleled scale results is provided in our Alternative Performance Measures section. Our KPIs (which are based on adjusted all stakeholders, including institutional metrics) are set out in the KPIs section. and private investors: www.itvplc.com