Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — TF1 Group — Investor Presentation (June 2015)
46 slides from Television Francaise 1 Sa's investor presentation, June 2015
Slide 1: Investor Presentation May – June 2015
INVESTOR PRESENTATION MAY – JUNE 2015
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof. All forward-looking statements are TF1 management’s p
Slide 3: Broadcasting & Content, Consumer Services, Pay-TV
BROADCASTING & CONTENT CONSUMER SERVICES PAY-TV HOME THEME CHANNELS BROADCASTING CONTENT VIDEO DIVERSIFICATION IN FRANCE SHOPPING FREE-TO-AIR TV E-TF1 * * * OTHER MEDIA ** EUROSPORT TF1 holds a 49% stake in Eurosport * Owned at 80%. ** Owned at 50%. 3
Slide 4: TV consumption remains at a high level and includes non-linear
TV CONSUMPTION REMAINS AT A HIGH LEVEL AND INCLUDES NOW A PART OF NON-LINEAR TV EVOLUTION OF LINEAR TV CONSUMPTION BETWEEN 2000 AND 2015 Women<50 PDM*: 3h53, i.e - 3’ vs Janv-Mars 2014 / -1% Individuals aged 4+ : 3h59, i.e + 3’ vs Janv-Mars 2014 / +1% *These figures do not include viewing time (live
Slide 5: TV reception modes in France
TV RECEPTION MODES IN FRANCE EVOLUTION OF PENETRATION RATE AS A % OF HOUSEHOLDS (Base: households equipped with TV) 15.5m Hertzian reception 12.6m HD DTT connected 11.6m TV reception by IPTV / fiber (IPTV/Fiber box equipped and connected to TV) 3.4m Free Satellite 3.1m Pay Satellite subscribers 2.2m
Slide 6: Q1 2015: Audience share
Q1 2015: AUDIENCE SHARE 4+ AUDIENCE SHARE (%) WPDM<50 AUDIENCE SHARE (%) EVOL. VS T1 2014 -4% = -1% +8% +24% -5% -1% -1% -1% +7% +32% -13% 27.7 28.8 13.4 8.5 3.6 2.1 31.8 18.2 20.6 9.3 3.3 2.7 TF1 GROUP FTV GROUP M6 GROUP C+ GROUP NRTV GROUP NRJ GROUP TF1 GROUP FTV GROUP M6 GROUP C+ GROUP NRTV GROUP
Slide 7: Significant growth of news channels' audience share
Q1 2015: SIGNIFICANT GROWTH OF NEWS CHANNELS’ AUDIENCE SHARE CHANGE ON Q1 2014 -4% -1% -3% -7% +9% +6% -3% +7% -7% +20% +10% -5% -11% -6% -16% +33% = +11% +25% +67% +75% ns +67% +33% Source : Médiamétrie – Médiamat – 2015 7
Slide 8: TF1: an undisputed leader in Q1
TF1: AN UNDISPUTED LEADER IN Q1 1. TF1’S PRIME-TIME STRICTLY STABLE YEAR ON YEAR ON ADVERTISING TARGETS • 6,1 M viewers and 28% audience share on women<50 • Positive trend: French dramas (Clem, L’emprise…) US Series (record launch for new season of Grey’s anatomy on women<50) Entertainment (Les Enfo
Slide 9: Good Q1 2015 ratings for TMC, NT1 and HD1
GOOD Q1 2015 RATINGS FOR TMC, NT1 ET HD1 ‣ ‣ No.1 audience for HD DTT ‣ No.5 evening channel, No.4 DTT channel for WPDM<50 on WPDM<50 ‣ 800,000 prime-time viewers ‣ 500,000 prime-time viewers ‣ 300,000 prime-time viewers SEMI-FINAL of World Handball FAST & FURIOUS 5 SECTION DE RECHERCHES Championshi
Slide 10: Successful renewal in digital media
SUCCESSFUL RENEWAL IN DIGITAL MEDIA 2008 No.1 FOR DIGITAL TV (1) No.1 FOR SOCIAL MEDIA (2) No.4 FOR VIDEOS (3) ANTICIPATION Monthly: Monthly: future modes of content consumption ‣ 11.5m web unique visitors ‣ 30m fans & followers ‣ 115m videos viewed ‣ 9m IPTV unique visitors ‣ 43 of the 50 most twee
Slide 11: Leadership is confirmed also on IPTV
LEADERSHIP IS CONFIRMED ALSO ON IPTV TF1’s unique position on IPTV 50 % of videos in replay are viewed on IPTV +42% of videos watched in one year In Q1 2015, 12m. of unique catch-uppers have used MYTF1 on IPTV 936,000 sessions, Average number of catch-uppers / month on the quarter 11% addition
Slide 12: Content: a successful quarter
CONTENT: A SUCCESSFULL QUARTER • 2 releases in theatres in Q1 2015 (vs. 6 GOOD PERFORMANCES OF ALL ACTIVITIES scheduled in Q2) • Success in theatres for Les Héritiers and Les Souvenirs • Theatre admissions totalled 2 million: • New movies: exploitation of Qu’est-ce qu’on a fait au bon Dieu? in video
Slide 13: The Consumer Services segment
THE CONSUMER SERVICES SEGMENT STRONG BRANDS OF TF1 ENTREPRISES • Licensing: success of the launch of the La Francaise des Jeux / Koh Lanta’s scratchcard • Board games: good performances thanks to the success of TF1 VIDEO: AN INCREASE OF THE ACTIVITY IN Chrono Bomb in 26 countries Q1 2015 • Publishin
Slide 14: Financial information
FINANCIAL INFORMATION The results shown hereafter are presented in accordance with IFRIC 21, “Levies”, applied with effect from January 1, 2015 and also applied retroactively to the 2014 comparatives.
Slide 15: TV media withstood in 2014
TV MEDIA WITHSTOOD IN 2014 TREND IN NET PLURIMEDIA ADVERTISING SPEND– FY 2014 VS 2013 Historical Media+Internet +0,1% €9,9 bn(-1,0% vs. 2013) +4,6% -8,5% +0,8% -1,4% -9,6% Market Share* 32,5% 25,1% 22,4% 11,9% 7,3% 0,8% Source: IREP– Press includes classified –2014 vs 2013 15
Slide 16: Evolution of net ad revenues (FTA channels)
TF1 GROUP: ÉVOLUTION OF NET AD REVENUES (FTA CHANNELS) Quarterly Net Advertising Revenues of TF1, TMC, NT1, HD1 (vs. n-1) 2,6% 3,2% Q1 2013 Q2 2013 0,0% Q4 2013 FY 2013 0,3% Q2 2014 Q4 2014 FY 2014 Q3 2013 Q1 2014 Q3 2014 -0,8% Q1 2015 -1,8% -2,2% -2,5% -4,9% -5,0% -13,0% H1: -8.8% H2: -1.1% H1: -1.
Slide 17: Evolution of advertising sectors for FTA channels
EVOLUTION OF THE ADVERTISING SECTORS FOR TF1 GROUP’S 4 FTA CHANNELS GROSS AD REVENUE FOR TF1 FTA CHANNELS: +8.3% (in Q1 2015 vs. Q1 2014) Source: Kantar Media, January-March 2015 vs. January-March 2014. 17
Slide 18: Q1 2015 advertising revenue evolution
Q1 2015 – ADVERTISING REVENUE EVOLUTION €m Q1 2015 Q1 2014 Var. €m Var. % AD. REVENUE – BROADCASTING & CONTENT 359.9 350.5 +9.4 +2.7% o/w TV 343.6 332.9 +10.7 +3.2% o/w Other platforms 16.3 17.6 (1.3) -7.4% AD. REVENUE – PAY-TV 3.2 3.6 (0.4) -11.1% o/w Eurosport group 1.3 1.7 (0.4) -23.5% o/w Theme
Slide 19: Consolidated revenue evolution by segment
CONSOLIDATED REVENUE EVOLUTION BY SEGMENT €m Q1 2015 Q1 2014 Var. €m Var. % BROADCASTING & CONTENT 395.1 385.3 +9.8 2.5% Broadcasting 380.5 370.9 +9.6 +2.6% Content 14.6 14.4 +0.2 +1.4% CONSUMER PRODUCTS 48.4 51.1 (2.7) -5.3% TF1 Vidéo 14.8 12.4 +2.4 +19.4% Téléshopping 25.4 27.4 (2.0) -7.3% TF1 Ent
Slide 20: Cost of programmes evolution
COST OF PROGRAMMES EVOLUTION €m Q1 2015 Q1 2014 Var. €m Var. % TOTAL COST OF PROGRAMMES 243.5 230.4 +13.1 +5.7% ONE-OFF SPORTING EVENTS - - - - TOTAL EXCL. ONE-OFF SPORTING EVENTS 243.5 230.4 +13.1 +5.7% Entertainment 75.1 76.3 (1.2) -1.6% TV dramas / TV movies / Series / Theatre 91.9 84.6 +7.3 +8.6
Slide 21: Consolidated income statement (1/2)
CONSOLIDATED INCOME STATEMENT (1/2) €m Q1 2015 Q1 2014 Var. €m Var. % CONSOLIDATED REVENUE 475.1 469.7 +5.4 +1.1% Total costs of programmes (243.5) (230.4) (13.1) +5.7% Other charges. depreciation & amortisation (203.5) (232.4) +28.9 -12.4% CURRENT OPERATING PROFIT 28.1 6.9 +21.2 Ns CURRENT OPERATIN
Slide 22: Current operating profit breakdown
CURRENT OPERATING PROFIT BREAKDOWN €m Q1 2015 Q1 2014 Var. €m Var. % BROADCASTING & CONTENT (12.0) 1.1 (13.1) nc Broadcasting (11.7) (2.6) (9.1) nc Content (0.3) 3.7 (4.0) nc CONSUMER PRODUCTS 3.6 5.1 (1.5) -29.4% TF1 Vidéo 0.5 0.3 +0.2 66.7% Téléshopping 1.9 2.4 (0.5) -20.8% TF1 Entreprises 1.2 2.4
Slide 23: Consolidated income statement (2/2)
CONSOLIDATED INCOME STATEMENT (2/2) €m Q1 2015 Q1 2014 Var. €m Var. % OPERATING PROFIT 28.1 6.9 +21.2 nc Cost of net debt 0.5 0.3 +0.2 +66.7% Other financial income and expenses (0.1) (0.2) +0.1 -50.0% Income tax expense 4.5 (0.5) +5.0 nc Share of profits / (losses) of associates 0.7 (1.0) +1.7 nc N
Slide 24: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET ASSETS (€m) March 31, 2015 Dec. 31, 2014 Var. €m Total non-current assets 1,326.0 1,369.4 (43.4) Total current assets 2,235.9 2,354.6 (118.7) Held-for-sale assets - - - TOTAL ASSETS 3,561.9 3,724.0 (162.1) SHAREHOLDERS’ EQUITY AND LIAB. (€m) March 31, 2015 Dec. 31, 2014 Va
Slide 25: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT €m Q1 2015 Q1 2014 Var. €m Operating cash flow (0.2) 23.9 (24.1) Income taxes (paid)/reimbursed (7.7) (8.8) +1.1 Change in operating working capital needs 83.9 27.1 +56.8 Net cash generated by/(used in) operating activities 76.0 42.2 +33.8 Net cash generated by/(used
Slide 26: A still strong financial structure
A STILL STRONG FINANCIAL STRUCTURE €m Net cash* 26 * Continuing operations
Slide 27: Outlook
OUTLOOK 27
Slide 28: 2015: stabilisation of the market?
2015: STABILISATION OF THE MARKET? ‣ The race for volume seems to reach an end ‣ The number of channels will not change ‣ Competition on programming investments is unlikely to let up ‣ TV remains the favourite medium in France ‣ Online video will continue to grow ‣ SVOD will develop slowly TELEVISIO
Slide 29: TF1 Group: the roadmap is clear
TF1 GROUP: THE ROADMAP IS CLEAR 1 TECHNOLOGIES AND DIGITAL MEDIA: OUR KEY STRENGHTS FOR THE FUTURE 2 FLEXIBILITY: ONGOING OPTIMISATION OF OUR RESOURCES IS THE TOP PRIORITY 3 VALUE CREATION: A PERMANENT OBJECTIVE 4 REGULATION: NEW OPPORTUNITIES THAT CAN BE POSITIVE FOR THE FUTURE 5 CITIZENSHIP: TF1,
Slide 30: An ethical, societal and environmental commitment reaffirmed
TF1 - AN ETHICAL, SOCIETAL AND ENVIRONNEMENTAL COMMITMENT REAFFIRMED 2014 2015 ‣ SIGNIFICANT PROGRESS IN GOVERNANCE • Ethics, women’s advancement, independence, specialised committees ‣ PART OF THE FABRIC OF SOCIETY • the most balanced and reliable news coverage • the most popular programmes ‣ DIVER
Slide 31: Appendix
APPENDIX 31
Slide 32: Landscape of DTT market in France
LANDSCAPE OF DTT MARKET IN FRANCE STATE-OWNED CANAL+ TF1 GROUP M6 GROUP NRJ GROUP NextRadioTV OTHERS CHANNELS GROUP Lagardère Amaury FREE DTT * Private Investors French [FTV – French State – Parliament Radio France – INA] PAY DTT * Is being acquired by NextRadioTV 32
Slide 33: TF1 channel, a European leader (1/2)
TF1 CHANNEL, A EUROPEAN LEADER (1/2) Audience share (in%) of European channels, leaders in their respective national territories in 2014 Gap between each leader and its challenger LEADER TF1 CHALLENGER FRANCE 2 8.8 pts LEADER BBC 1 CHALLENGER ITV1 6.9 pts LEADER ZDF 0.8 pt CHALLENGER DAS 1 0.9 pt LE
Slide 34: TF1 channel, a European leader (2/2)
TF1 CHANNEL, A EUROPEAN LEADER (2/2) Audience share (in%) of private European channels, leaders in their respective national territories over 2014 TF1 CANALE 5 ITV TELECINCO ANTENA 3 RTL M6 SAT.1 LA SEXTA CUATRO ITALIA 1 PRO 7 VOX Source : Médiamétrie – 4 years & over (France) / Eurodata TV – BARB -
Slide 35: An optimised cost of programmes
AN OPTIMISED COST OF PROGRAMMES €1,024m * €994m ** ‣ Downward renegotiation of sports rights contracts and termination of unprofitable contracts ‣ Optimisation of programming in accordance with broadcasting -5.5% requirements ‣ Initial impact of multi-channel circulation ‣ Adaptation of programming
Slide 36: An overhauled cost base
AN OVERHAULED COST BASE SAVINGS THROUGH SAVINGS ADDITIONAL SAVINGS HIGHER PRODUCTIVITY IN PURCHASING 21 SAVINGS OF 13 12 10 €42m 8 7 ‣ Termination of some business operations (JET, TOP TICKET.S) 0 2008 2009 2010 2011 2012 2013 2014 ‣ Reduction of external expenses * Restated for Eurosport Internatio
Slide 37: A capacity for building partnerships
A CAPACITY FOR BUILDING PARTNERSHIPS 37
Slide 38: Revenue evolution
REVENU EVOLUTION len a az AD. REVENUE - BROADCASTING & CONTENT 1,560.3 o/wIV 1,476.7 | o/w Other platforms 83.6 | AD. REVENUE - PAY-TV 15.2 | o/w Eurosport group 69 | o/w Theme channels in France 8.3 | GROUP ADVERTISING REVENUE 1,575.5 "TT NGNABVERTRING REVENUE III 516.3) CONSOLIDATED REVENUE 2,091.
Slide 39: Cost of programmes evolution
COST OF PROGRAMMES EVOLUTION 39
Slide 40: Consolidated income statement (1/2)
CONSOLIDATED INCOME STATEMENT (1/2) 40
Slide 41: Current operating profit breakdown
CURRENT OPERATING PROFIT BREAKDOWN 41
Slide 42: Consolidated income statement (2/2)
CONSOLIDATED INCOME STATEMENT(2/2) 42
Slide 43: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET 43
Slide 44: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT 44
Slide 45: Dividend proposal to the Annual General Meeting – 16 April 2015
DIVIDEND PROPOSAL TO THE ANNUAL GENERAL MEETING – 16 APRIL 2015 Exceptional part (€/share) Ordinary part (€/share) Return (based on the year’s average share price) 1.50 12.1% 7.3% 3.7% 5.2% 4.5% 4.5% 4.8% 3.6% 1.22 0.85 0.43 0.55 0.55 0.55 0.55 0.47 0.28 2007 2008 2009 2010 2011 2012 2013 2014 45
Slide 46: Contacts
CONTACTS Philippe DENERY – CFO IR department pdenery@tf1.fr tel: 33-1 41 41 27 32 Christine BELLIN – Head of Investor Relations Fax : 33-1 41 41 29 10 cbellin@tf1.fr comfi@tf1.fr TF1 François-Xavier GIMONNET – Deputy Head of Investor Relations 1 quai du Point du Jour fxgimonnet@tf1.fr 92 656 Boulogn