Slide 1: Analysts' Presentation, 23 August 2012
23 August 2012 ANALYTSATTIOSN’ PRESEN Anke Schäferkordt, Co-CEO Guillaume de Posch, Co-CEO Elmar Heggen, CFO The leading European entertainment network
Slide 2: Agenda
Agenda ● HALF-YEAR HIGHLIGHTS o Business Review o Financial Review o Business Outlook o Strategy The leading European entertainment network 2
Slide 3: Half-year highlights 2012
Half-year highlights 2012 up REVENUE 3.3% €2.8 billion REPORTED EBITA continuing operations €506 million EBITA MARGIN CASH CONVERSION NET CASH POSITION NET RESULT 18.0% 104% €634 million €274 million SOLID RESULTS IN TOUGH ECONOMIC ENVIRONMENT 3
Slide 4: Agenda: Business Review
Agenda o Half-year highlights ● BUSINESS REVIEW o Financial Review o Business Outlook o Strategy The leading European entertainment network 4
Slide 5: Mediengruppe RTL Deutschland
Mediengruppe RTL Deutschland AUDIENCE SHARE – FAMILY OF CHANNELS SHARE OF NET ADVERTISING MARKET (in %) 14-49 (in %) 46.4 43.3 RTL RTL 43.8 43.5 43.9 44.0 44.2 34.4 35.0 35.0 43.8 33.6 32.9 33.8 32.9 32.2 31.8 43.7 43.4 41.6 30.3 30.1 29.7 43.1 41.6 41.4 40.8 P7S1 29.4 29.0 29.3 28.9 29.4 28.1 P7S1
Slide 6: Groupe M6
Groupe M6 AUDIENCE SHARE – MAIN CHANNELS NET TV ADVERTISING MARKET DEVELOPMENT HOUSEWIVES <50 ALL DAY (in %) HY 2012 VS HY 2011 (in %) +0.2 -1.5 -0.1 -0.3 +1.7 41.7 Market M6 TF1 25.3 17.3 11.0 4.7 -4.0 -5.8 -5.9 M6 TF1 France 2 France 3 Others x Percentage point deviation vs HY 2011 M6 and TF1: mai
Slide 7: FremantleMedia
FremantleMedia KEY FACTS 2012 KEY FINANCIALS (in € million) REVENUE EBITA ● Core franchises remain strong o American Idol: number one entertainment series 720 621 in the US for the past nine years o L’amour est dans le pré: makes M6 the market leader in its time slot ROS ROS o Britain’s Got Talent:
Slide 8: RTL Nederland
RTL Nederland AUDIENCE SHARE: 20-49, PRIMETIME (in %) NET TV ADVERTISING MARKET DEVELOPMENT HY 2012 vs HY 2011 (in %) +0.2 +3.5 -1.9 -1.3 -1.2 Market RTL Nederland 18.9 18.2 9.3 5.7 4.3 -3.5 RTL 4 NED 1 SBS 6 RTL 5 Net 5 -6.2 x Percentage point deviation vs HY 2011 Source: RTL Group estimates (spot
Slide 9: RTL Belgium
RTL Belgium AUDIENCE SHARE: SHP 18-54, PRIMETIME (in %) NET TV ADVERTISING MARKET DEVELOPMENT HY 2012 VS HY 2011 (in %) -1.9 +2.0 +0.5 +0.1 +1.1 Market RTL Belgium RTBF 27.6 13.2 6.2 5.7 3.8 RTL-TVI La Une La Deux Club RTL Plug RTL -8.1 -8.3 -9.7 x Percentage point deviation vs HY 2011 Source: RTL G
Slide 10: RTL Radio (France)
RTL Radio (France) AVERAGE AUDIENCE SHARE 2012 – 13+, 5-24H, MON – FRI (in %) RTL STATIONS NRJ GROUP LAGARDÈRE PUBCASTER 18.3 -1.3p 14.5 -0.3p 12.8 +0.2 20.4 +1.0p -0.5 -0.5 -0.3 +1.1 -0.7 -0.3 -0.4 +0.1 -0.4 +0.5 +0.9 +0.2 -0.1 11.6 10.5 7.0 7.4 6.3 3.8 2.9 3.5 2.6 3.3 3.6 1.4 2.1 RTL Fun RTL2 NRJ
Slide 11: Others: Hungary, Croatia, Spain
Others: Hungary, Croatia, Spain KEY FINANCIALS, RTL Klub (in € million) KEY FINANCIALS, RTL Hrvatska (in € million) REVENUE EBITA REVENUE EBITA 48 45 18 ROS ROS 15 10.4% 6.7% 5 3 -1 -4 HY 2011 HY2012 HY 2011 HY2012 HY 2011 HY2012 HY 2011 HY2012 KEY FACTS 2012 KEY FINANCIALS, Grupo Antena 3 (in € mil
Slide 12: Key developments 2012 (1/2)
Key developments 2012 (1/2) CORE CONTENT ONGOING MARCH Integration and re-positioning of Global first look deal for distribution 7 cable channels in Hungary rights to Hulu’s original programming MARCH SINCE MAY Licence awarded to Groupe M6 FremantleMedia launches for launch of 6ter Youtube channels
Slide 13: Key developments 2012 (2/2)
Key developments 2012 (2/2) DIGITAL NON-LINEAR TV MOBILE SERVICES ONLINE VIDEO VIEWS (in million) All RTL Group platforms 1,200 +33% +30% 928 715 HY 2010 HY 2011 HY 2012 Examples: ● More then 220 mobile applications launched ● 65 million downloads to date ● Mobile video views in H1/2012: +92% in Ger
Slide 14: Agenda: Financial Review
Agenda o Half-year highlights o Business Review ● FINANCIAL REVIEW o Business Outlook o Strategy The leading European entertainment network 14
Slide 15: Review of Results June 2012, continuing operations (1/2)
Review of Results 30 June 2012, continuing operations (1/2) Half-year to Half-year to Per cent In € million June 2012 June 2011 1) change REVENUE 2,815 2,725 +3.3 REPORTED EBITA 506 588 -13.9 Reported EBITA margin (%) 18.0 21.6 -3.6pp Net result attributable to RTL Group shareholders 274 324 -15.4 U
Slide 16: Review of Results June 2012, continuing operations (2/2)
Review of Results 30 June 2012, continuing operations (2/2) Half-year to Half-year to Per cent In € million June 2012 June 2011 change REPORTED EBITA 506 588 -13.9 Impairment of investment in associates and amortisation and impairment of fair value adjustments on acquisitions (15) (16) Gain / (Loss)
Slide 17: Cash Flow Statement as of June 2012
Cash Flow Statement as of 30 June 2012 In € million Half-year to Half-year to June 2012 June 2011 NET CASH FLOW FROM OPERATING ACTIVITIES 385 463 Add: Income tax paid 225 156 Less: Acquisition of assets, net (87) (87) Equals: Reported free cash flow (FCF) 523 532 Acquisition of subsidiaries and JVs,
Slide 18: Agenda: Business Outlook
Agenda o Half-year highlights o Business Review o Financial Review ● BUSINESS OUTLOOK o Strategy The leading European entertainment network 18
Slide 19: Outlook
Outlook The difficult and volatile economic conditions are not expected to ease over the remainder of the year No visibility yet for important Q4 – RTL Group maintains its cautious and flexible approach for the business For the full year, RTL Group expects slight growth in revenue and solid level of
Slide 20: Agenda: Strategy
Agenda o Half-year highlights o Business Review o Financial Review o Business Outlook ● STRATEGY The leading European entertainment network 20
Slide 21: Strategic focus will be on three key areas
Strategic focus will be on three key areas DIGITAL Grow online video and diversify into additional online businesses CONTENT Grow intellectual property and expand capabilities CORE Strengthen family of channels in core markets, selective growth in new territories 21
Slide 22: Core: growth opportunities for TV broadcasting business
Core: growth opportunities for TV broadcasting business T H E N DRIVEeam SELECTIVE ST R E N G new revenue s tr annels family of ch in core marke ts opportunities: platform fees, pay-TV a nd GROWoTrieHs in new territ subscription LAUNCHED APRIL 2012 Steady progress in Germany on platform fees coupled
Slide 23: Content: FremantleMedia creates long-term brand value
Content: FremantleMedia creates long-term brand value PRODUCTION AND EXPLOITATION NETWORKS Branded TV Entertain- Publish- ing ment Format Gaming Sales Create Live Events INTELLECTUAL PROPERTY Home Entertain- ment hit formats Branded Retail Mobile Sponsor- ship Telephony Online Roll-out formats acros
Slide 24: Content: expand FremantleMedia in new business areas
Content: expand FremantleMedia in new bussiness areas ORGANIC GROWTH + ACQUISITIONS General entertainment/ Gaming US drama Kids Online verticals entertainment GROWTH IN NEW INTELLECTUAL PROPERTY ALIGNED WITH NEW EXECUTION CAPABILITIES 24
Slide 25: Content: FremantleMedia taps into digital growth
Content: FremantleMedia taps into digital growth EXTEND DISTRIBUTE CREATE ACTIVATE AND GLOBAL ORIGINAL ENGAGE AUDIENCE MULTI-PLATFORM PROGRAMME DISTRIBUTION OFFERINGS ON YOUTUBE More than 30 million mobile 1.6 billion video views on Youtube First deals done in first six months of 2012 downloads to d
Slide 26: Digital: overall TV consumption will continue to grow
Digital: overall TV consumption will continue to grow TV CONSUMPTION IN WESTERN-EUROPE (in minutes – estimated) SPLIT (in %) SPLIT (in %) 231 248 12 Non-linear TV 3 12 Non-linear TV 4% 7 10% Linear TV Linear TV 96% 221 224 90% Linear TV Linear TV 2011e 2015e Time shifted OTT TV CONSUMPTION WILL BENE
Slide 27: Digital: growing online video on multiple devices
Digital: growing online video on multiple devices GERMANY FRANCE NETHERLANDS Total online video views (in m) Total online video views (in m) Total online video views (in m) +40% +13% +26% 634 258 292 233 452 186 HY 2011 HY 2012 HY 2011 HY 2012 HY 2011 HY 2012 PC Mobile Tablet HbbTV PC Mobile Tablet
Slide 28: Digital: further expand and develop online portfolio, brands and ventures
Digital: further expand and develop online portfolio, brands and ventures ONLINE TV SITES Drive user engagement BRAND EXTENSIONS Promote and leverage brand power to drive new revenues TV Brands VERTICALS NEW BUSINESSES Increase scale and reach Verticals Ventures Diversifiy in non-ad related ventures
Slide 29: Conclusion: many growth opportunities, clear strategy
Conclusion: many growth opportunities, clear strategy DIGITAL Grow online video and diversify into additional online businesses CONTENT Grow FremantleMedia CORE Optimise and develop existing TV and radio businesses and invest for growth 29
Slide 30: Analysts' Presentation, August 2012
23 August 2012 ANALYTSATTIOSN’ PRESEN Anke Schäferkordt, Co-CEO Guillaume de Posch, Co-CEO Elmar Heggen, CFO The leading European entertainment network