Slide 1: Entertain. Inform. Engage.
Entertain. Inform. Engage.
Slide 2: Agenda
AGENDA ⁄ HIGHLIGHTS ⁄ GROUP FINANCIALS ⁄ OPERATIONS ⁄ STRATEGY & OUTLOOK Entertain. Inform. Engage.
Slide 3: Progress across all three strategic priorities
Highlights PROGRESS ACROSS ALL THREE STRATEGIC PRIORITIES Higher audience and TV advertising 1 market shares in Germany and France Strong growth of content (+12.6%) and 2 streaming revenue (+46.7%) 3 New alliances and partnerships 3
Slide 4: Revenue at all-time high, profit up
Highlights REVENUE AT ALL-TIME HIGH, PROFIT UP 10 PER CENT organic1 Revenue: €6,651m +2.2% +3.2% Adjusted EBITA2: €1,156m -1.3% Margin: 17.4% -0.6pp Profit for the year: €864m +10.1% 4 Notes: 1. Adjusted for scope changes, the wind-down of StyleHaul and at constant exchange rates, 2. Adjusted for on
Slide 5: Attractive dividend
Highlights ATTRACTIVE DIVIDEND Full year to In € million December 2019 Profit for the year attributable to RTL Group shareholders 754 DIVIDEND, in € per share 4.00 Dividend, absolute amount1 614 Dividend payout, in %2 81% 5 Notes: 1. Based on total share capital less treasury shares held by the Grou
Slide 6: Group Financials
GROUP FINANCIALS
Slide 7: High margins, lower debt
Group Financials HIGH MARGINS, LOWER DEBT Full year to Full year to Per cent In € million December 2019 December 2018 change Revenue 6,651 6,505 +2.2 Underlying revenue 6,518 6,317 +3.2 Operating cost base 5,623 5,464 +2.9 Adjusted EBITA 1,156 1,171 (1.3) Adjusted EBITA margin (%) 17.4 18.0 (0.6)pp
Slide 8: Net profit up strongly
Group Financials NET PROFIT UP STRONGLY Full year to Full year to Per cent In € million December 2019 December 2018 change Reported EBITA 1,139 1,171 (2.7) Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value 87 27 of pre-existing interest in acquiree and earn-ou
Slide 9: High level of cash conversion
Group Financials HIGH LEVEL OF CASH CONVERSION Full year to Full year to In € million December 2019 December 2018 Net cash flow from operating activities 1,085 873 Add: Income tax paid 334 354 Less: Acquisition of assets, net (220) (178) Equals: Reported free cash flow (FCF) 1,199 1,049 Acquisition
Slide 10: Operations
OPERATIONS
Slide 11: Mediengruppe RTL Deutschland: higher audience and net TV advertising market shares
Mediengruppe RTL Deutschland HIGHER AUDIENCE AND NET TV ADVERTISING MARKET SHARES Key financials¹ Family of channels HIGHLIGHTS In € million 14 to 59, FY 2019 Revenue EBITA 28.1%3 RTL Television with +0.1% first increase in audience organic1 share since 2011 -1.8% 2,304 10.7% 2,262 Others 23.7% 6.4%
Slide 12: Groupe M6: higher audience and net TV advertising market shares
Groupe M6 HIGHER AUDIENCE AND NET TV ADVERTISING MARKET SHARES Key financials¹ Family of channels HIGHLIGHTS In € million Family of channels Women < 50 responsible Revenue for purchases, FY 2019 EBITA 22.8% Acquisition of Gulli -0.2% organic2 further strengthens family of channels -1.8% 1,483 1,456
Slide 13: RTL Nederland: Videoland continues to grow rapidly
RTL Nederland VIDEOLAND CONTINUES TO GROW RAPIDLY Key financials Family of channels HIGHLIGHTS In € million Adults 25 to 54, Prime time, FY 2019 Revenue EBITA 29.8% Strong performance of entertainment formats -1.1% (The Voice of Holland, organic1 The Masked Singer) -1.6% Others 18.8% 16.9% 504 496 I
Slide 14: Fremantle: growth fuelled by drama performance
Fremantle GROWTH FUELLED BY DRAMA PERFORMANCE Key financials HIGHLIGHTS In € million + 12.6% Strong performance of 164 1,793 non-scripted formats 1,592 37 + 11.8% FX Organic growth 142 127 Revenue EBITA +10.3% 33 Growing drama business: revenue up 36.2% YoY Drama Drama Increased client base with glo
Slide 15: Strategy & Outlook
STRATEGY & OUTLOOK
Slide 16: New strategic framework
NEW STRATEGIC FRAMEWORK 1 2 3 ALLIANCES & HIGHER REACH & CORE GROWTH PARTNERSHIPS MONETISATION Creativity & Communications & People Regulation Entrepreneurship Marketing ENABLER 16
Slide 17: Strategic priorities – Core
1 STRATEGIC PRIORITIES – CORE STRENGTHEN MARKET POSITIONS INVEST IN PREMIUM CONTENT Families of channels: Build and extend Content: Invest to leverage for both linear families of channels organically or through and streaming services consolidation in existing footprint Operational efficiency: Assess
Slide 18: Strategic priorities – Growth: national streaming champions
2 STRATEGIC PRIORITIES – GROWTH BUILD NATIONAL STREAMING CHAMPIONS TARGETS 2025¹ Investments: Boost investments in content, 5m to 7m paying subscribers marketing and technology > €500m streaming revenue Execution: Roll-out via stand-alone services or national partnerships ~ €350m content spend p.a.,
Slide 19: Strategic priorities – Growth: technology and data
2 STRATEGIC PRIORITIES – GROWTH INVEST IN TECHNOLOGY AND DATA TARGETS Smartclip: Create advertising technology platform, open to partners Leading European advertising technology platform Bedrock: Create streaming technology platform, open to partners Leading European streaming technology platform Eu
Slide 20: Strategic priorities – Growth: global content business and digital talent
2 STRATEGIC PRIORITIES – GROWTH BUILD LEADING DIGITAL TALENT EXPAND GLOBAL CONTENT BUSINESS NETWORK AND CONTENT STUDIO Creative freshness: Nurture established Divimove: Expand talent management, brands and invest in new formats production of short-form video content, advertising sales and technology
Slide 21: Strategic priorities – Alliances & Partnerships
3 STRATEGIC PRIORITIES – ALLIANCES & PARTNERSHIPS EXPAND ADVERTISING SALES LEVERAGE CONTENT EXPERTISE Ad Alliance: Build one-stop advertising sales Content alliance: Create and exploit houses for cross-media campaigns cross-media content RTL AdConnect: Drive international advertising sales to access
Slide 22: Outlook for 2020
RTL Group OUTLOOK FOR 2020 The following outlook does not reflect the Covid-19 (“Corona”) virus outbreak as it is currently too early to quantify its impact on RTL Group’s results. However, we already see first cancellations of advertising bookings and impacts on productions. 2019 change 2020e Reven
Slide 23: Entertain. Inform. Engage.
Entertain. Inform. Engage.
Slide 24: Disclaimer
Disclaimer This presentation is not an offer or solicitation of an offer to buy or sell securities. It is furnished to you solely for your information and use at this meeting. It contains summary information only and does not purport to be comprehensive or complete, and it is not intended to be (and