Slide 1: Entertain. Inform. Engage.
GROUP ENTERTAIN. INFORM. ENGAGE.
Slide 2: Agenda
AGENDA ⁄ HIGHLIGHTS ⁄ GROUP FINANCIALS ⁄ OPERATIONS ⁄ STRATEGY & OUTLOOK Entertain. Inform. Engage.
Slide 3: RTL Group's businesses demonstrate resilience
Highlights RTL GROUP’S BUSINESSES DEMONSTRATE RESILIENCE 1 Unprecedented revenue decline in Q2 2 50% of revenue decline offset by cost savings Operating cash conversion rate of 164%; 3 reduction of net financial debt 4 Gains in advertising market shares Outperformance of commercial competitors on 5
Slide 4: Group Financials
GROUP FINANCIALS Legomasters / RTL 4
Slide 5: Profit margin at 10% in the first half of 2020
Group Financials PROFIT MARGIN AT 10% IN THE FIRST HALF OF 2020 Half year to Half year to Per cent In € million June 2020 June 2019 change Revenue 2,652 3,173 (16.4) Operating cost base 2,441 2,684 (9.1) Adjusted EBITA 258 538 (52.0) Adjusted EBITA margin (%) 9.7 17.0 (7.3)pp Reported EBITA 241 538
Slide 6: 50% of revenue decline in Q2/2020 offset by cost reductions
Group Financials 50% OF REVENUE DECLINE IN Q2/2020 OFFSET BY COST REDUCTIONS In € million 340 Compensation rate: 50% 105 -469 +234 Adjusted EBITA Revenue Cost Adjusted EBITA Q2/2019 decline compensation Q2/2020 Q2/2020 vs. Q2/2019 6
Slide 7: Positive net result
Group Financials POSITIVE NET RESULT Half year to Half year to Per cent In € million June 2020 June 2019 change Adjusted EBITA 258 538 (52.0) Special items (17) – Reported EBITA 241 538 (55.2) Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value 88 70 of pre-exis
Slide 8: High operating cash flow & conversion due to working capital management
Group Financials HIGH OPERATING CASH FLOW & CONVERSION DUE TO WORKING CAPITAL MANAGEMENT Half year to Half year to In € million June 2020 June 2019 Net cash from operating activities 336 354 Add: Income tax paid 159 255 Less: Acquisition of assets, net (100) (96) Equals: Operating free cash flow (FC
Slide 9: Reduced net debt since end of 2019
Group Financials REDUCED NET DEBT SINCE END OF 2019 As at 30 As at 31 In € million June 2020 December 2019 Gross balance sheet debt (923) (788) Add: Cash and cash equivalents 512 377 Add: Current deposit with shareholders 226 27 Add: Other effects 4 - Net debt (181) (384) 9
Slide 10: Operations
OPERATIONS Tous en cuisine / M6
Slide 11: Mediengruppe RTL Deutschland: Outperforming commercial competition
Mediengruppe RTL Deutschland OUTPERFORMING COMMERCIAL COMPETITION Key financials¹ Family of channels HIGHLIGHTS In € million 14 to 59, H1/2020 Revenue Adjusted EBITA 28.0%2 NTV in March 2020 with best audience share ever -16.9% 10,7% Others 23,1% 6,2% 1.088 904 MARKET MARKET 11,1% RTL Studios to acq
Slide 12: Groupe M6: Gains in audience share, significant cost reduction
Groupe M6 GAINS IN AUDIENCE SHARE, SIGNIFICANT COST REDUCTION Key financials¹ Family of channels HIGHLIGHTS In € million Family of channels Women < 50 responsible Revenue for purchases, H1/2020 Adjusted EBITA 22.5% News shows with -22.1% massive audience 14,1% growth in March 2020 Others 715 34,2% 8
Slide 13: RTL Nederland: Growth of streaming service Videoland
RTL Nederland GROWTH OF STREAMING SERVICE VIDEOLAND Key financials Family of channels HIGHLIGHTS In € million Adults 25 to 54, prime time, H1/2020 Revenue Adjusted EBITA 30.8% Strong performance of -11.9% Others entertainment formats 17,5% 18,3% (The Voice of Holland, Legomasters) 235 207 MARKET MAR
Slide 14: Fremantle: Creative successes across all genres
Fremantle CREATIVE SUCCESSES ACROSS ALL GENRES Key financials HIGHLIGHTS In € million Revenue Adjusted EBITA Ted Sarandos, Co-CEO of Netflix: “biggest competition show ever” -14.6% BBC’s highest-rated 828 drama since August 2018, 707 sold to AMC in the US 52 23 Continued push into H1/2019 H1/2020 My
Slide 15: Strategy & Outlook
STRATEGY & OUTLOOK Let’s Dance / RTL Television
Slide 16: New strategy framework: Higher reach & monetisation
NEW STRATEGY FRAMEWORK HIGHER REACH & MONETISATION 16
Slide 17: Strategic priorities – Growth: Building national streaming champions
STRATEGIC PRIORITIES – GROWTH BUILDING NATIONAL STREAMING CHAMPIONS TARGETS 2025¹ UNCHANGED Streaming revenue: +23% in H1/2020 5m to 7m paying subscribers > €500m streaming revenue Paying subscribers: +45% to 1.77m Viewing time up 36% in GER, up 31% in NL ~ €350m content spend p.a., 4x higher than 2
Slide 18: Strategic priorities – Growth: Delivering strong drama pipeline
STRATEGIC PRIORITIES – GROWTH DELIVERING STRONG DRAMA PIPELINE 55 scripted drama series in production (incl. local dramas and dailies) and over 450 dramas in development The Hand of God – Deutschland 89 My Brilliant Friend Season 3 directed by Paolo Sorrentino 18
Slide 19: Strategic priorities – Alliances & partnerships
STRATEGIC PRIORITIES – ALLIANCES & PARTNERSHIPS LEVERAGING TECHNOLOGY & DATA SOLUTIONS Smartclip: open advertising technology platform for European broadcasters; new partnership with Atresmedia Bedrock: open streaming technology platform for European broadcasters RTL Radio (France): announced a join
Slide 20: Outlook
OUTLOOK Outlook withdrawn in April 2020 Q3/2020 net TV advertising market decline expected to slow down RTL Group projects its TV advertising revenue to be down by around minus 10% in Q3/2020 compared to approximately minus 40% in Q2/2020 (assuming further normalisation of the market condition
Slide 21: Entertain. Inform. Engage.
GROUP ENTERTAIN. INFORM. ENGAGE.
Slide 22: Definitions
DEFINITIONS Alternative performance measure Explanation EBITA represents earnings before interest and taxes excluding some elements of the income statement: “Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries”, impairment of investments a
Slide 23: 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