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2. Basis of Presentation of the Financial Statements

The fnancial statements have been prepared in accordance with Spanish GAAP enacted by Royal Decree 1514/2007 of 16 November, which was amended by Royal Decree 1159/2010, of 17 September and all prevailing mercantile law.

The fgures shown in these fnancial statements are presented in thousands of euros unless otherwise indicated.

True and fair view

The accompanying annual fnancial statements have been prepared from the Company’s accounting records in accordance with prevailing accounting legislation in order to give a true and fair view of the equity, fnancial position and results of the Company, as well as the cash fows reported in the cash fow statement.

These fnancial statements have been prepared by the directors of the company and will be submitted for approval by the shareholders in general meeting. It is expected that they will be approved without modifcation.

Comparative information

Thus, in accordance with mercantile law, for comparative purposes the Company has included the 2009 fgures in addition to those of 2010 for each item of the balance sheet, of the income statement, of the statement of changes in equity, of the cash fow statement and the of Notes thereto. The notes to the fnancial statements also include quantitative information from the previous year, except when an accounting standard specifcally establishes this as unnecessary.

Application of new accounting standards

This is the frst year the Company has applied the following amendments to standards or new standards; therefore, this should be borne in mind when making comparisons with the prior year.

Amendments to Spanish GAAP (2007) introduced by Royal Decree 1159/2010

These fnancial statements are the frst prepared by the Company’s directors in which they apply the amendments introduced to Spanish GAAP (2007) by Royal Decree 1159/2010, of 17 September. Transitional Provision Five section a) of this Royal Decree stipulates that comparative information should be presented without any changes to adapt it to the new criteria. Consequently, the fnancial statements are classifed as frst time in terms of the application of the accounting uniformity principle and the comparability requirement.

Information on late payment to suppliers in commercial transactions

This is the frst year in which the Resolution of 29 December 2010 passed by the Spanish Institute of Accounting and Auditors of Accounts (ICAC) is applicable to the information concerning late payment to

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GESTEVISION TELECINCO, S.A.