Slide 1: The leading European entertainment network
13 and 14 November 2012 Andrew Buckhurst The leading European entertainment network
Slide 2: Agenda: Introduction
Agenda ● INTRODUCTION o Business Review o Strategy Update The leading European entertainment network 1
Slide 3: RTL Group Q3 2012: highlights
RTL Group Q3 2012 : highlights Qtr 3 EBITA MARGIN REVENUE REPORTED EBITA 12.7% - stable continuing operations continuing operations Qtr 3 EBITA EUR 4.1 billion EUR 671 million EUR 165 million 2012 : integration Hu cable NET CASH POSITION Strong audience shares channels, successful launch EUR 769 mil
Slide 4: Agenda: Business Review
Agenda o Introduction ● BUSINESS REVIEW o Strategy Update The leading European entertainment network 3
Slide 5: Germany & France Advertising and audiences 2012
Germany & France Advertising and audiences 2012 NET ADVERTISING MARKET DEVELOPMENT (in %) NET ADVERTISING MARKET DEVELOPMENT (in %) Jan-Sep 2012 vs Jan-Sep 2011 Jan-Sep 2012 vs Jan-Sep 2011 Market RTL P7S1 Market M6 3,1 1,2 -0,3 -4,8 -6,0 YTD AUDIENCE SHARE – FAMILY OF CHANNELS YTD AUDIENCE SHARE –
Slide 6: 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 7: Netherlands & Belgium Advertising and audiences 2012
Netherlands & Belgium Advertising and audiences 2012 NET TV ADVERTISING MARKET DEVELOPMENT (in %) NET TV ADVERTISING MARKET DEVELOPMENT (in %) Jan–Sep 2012 vs Jan-Sep 2011 Jan–Sep 2012 vs Jan-Sep 2011 Market RTL SBS Market RTL RTBF -4,8 -6,2 -15,2 -8,2 -8,4 -9,2 Source : RTL Group estimates Source :
Slide 8: Key developments 2012 (1/2)
Key developments 2012 (1/2) 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 APRIL JULY Su
Slide 9: Key developments 2012 (2/2)
Key developments 2012 (2/2) 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 ● More then 220 mobile applications launched Examples: ● 65 million downloads to date ● Mobile video views in H1/2012: +92% in Germany, +9
Slide 10: Agenda: Strategy Update
Agenda o Introduction o Business Review ● STRATEGY UPDATE The leading European entertainment network 9
Slide 11: 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 10
Slide 12: Core: growth opportunities for TV broadcasting business
Core: growth opportunities for TV broadcasting business Steady progress in Germany on platform fees coupled with strong development of HD+ offer INVESTMENTS IN EXISTING AND NEW MARKETS, GROW NON-ADVERTISING REVENUE 11
Slide 13: 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 12
Slide 14: 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 TV Brands Promote and leverage brand power to drive new revenues VERTICALS NEW BUSINESSES Increase scale and reach Verticals Ventures Diversifiy in non-ad related ventures
Slide 15: 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 14