Rtl Group S.a. · LUXSE:RTLL
Rtl — Goldman Sachs conference, New York, September 2018
23 slides from Rtl's conference presentation, Sep 12, 2018
Slide 1: Goldman Sachs New York
Goldman Sachs New York September 12-13th 2018
Slide 2: Agenda
Agenda 1 2 3 2018 Group Operational Strategy & highlights highlights Outlook 2018 2
Slide 3: Highlights: The pan-European leader in Total Video
Highlights The pan-European leader in Total Video BROADCAST REVENUE Leading free-to-air In € million 3,046 +2.3% TV channels and growing HY 2018: First time over €3 billion VOD services CONTENT Global entertainment brands and growing catalogue Record-high in TV of high-end drama challenging market e
Slide 4: Our long-term track record
Highlights Our long-term track record LOCAL CONTENT AS KEY SUCCESS FACTOR … Consistent revenue growth +3% CAGR since 2014 High EBITDA margins 20.9% in HY 2018 Ever more diversified revenue mix 52.3% Non-TV ad revenue Organic growth … PROVIDING FIREPOWER TO from content & digital +10.3% Digital: +16.
Slide 5: Strong second quarter drives half-year results
Highlights Strong second quarter drives half-year results Q2 revenue +3.6% Q2 EBITDA +4.7% Half-year revenue +2.3% Half-year EBITDA +1.9% 5
Slide 6: Continued organic growth through a broad and diversified revenue mix
Highlights Continued organic growth through a broad and diversified revenue mix RTL GROUP HY 2018 REVENUE SPLIT PLATFORM AND DIGITAL REVENUE In % In € million Groupe M6: Renewal of distribution agreements Platform1 591 Content 167 #1 MPN 1.7x Revenue +20% YoY3 18.7 213 3.8x 424 100 5.5 47.7 113 TV a
Slide 7: Looking forward: More organic growth initiatives
Looking forward More organic growth initiatives across all our main businesses BROADCAST Expand local video-on-demand services CONTENT Continue push into scripted drama DIGITAL Build global MPNs and ad-tech stack 7
Slide 8: Agenda
Agenda 1 2 3 2018 Group Operational Strategy & highlights highlights Outlook 2018 8
Slide 9: Mediengruppe RTL Deutschland: largest unit with outstanding profitability
Mediengruppe RTL Deutschland RTL Group’s largest unit with outstanding profitability … FAMILY OF CHANNELS 14 to 59, HY 2018 MG RTL1 27.3% KEY FINANCIALS +0.5 to 1.5% In € million TV ad market REVENUE EBITDA 34.2% 10.7% margin +0.8% Others 23.5% 6.3% +0.8% 1,061 1,070 10.3% ARD-III 7.0% 363 366 8.6%
Slide 10: Significant audience share lead in most important time slots
Mediengruppe RTL Deutschland … and significant audience share lead in most important time slots FAMILY OF CHANNELS 14 to 59, HY 2018 MG RTL1 27.3% ACCESS PRIME TIME PRIME TIME (17 – 20h) 14 to 59, in % (20 – 23h) 14 to 59, in % 10.7% +5.3 pp +3.7 pp Others 23.5% 6.3% 27.5 26.0 22.2 10.3% 22.3 ARD-II
Slide 11: MGRTL TV On-demand: TV Now outperforming expectations
MGRTL TV On-demand TV Now is outperforming expectations and competition Key growth drivers: PAID SUBSCRIBER AND VIDEO VIEW GROWTH 1 exclusive local in % formats such as GZSZ +42% +44% Successful launch 2 of OTT linear channel: Now US 35.8 Premium service 20.3 3 TV Now Plus: dynamic HY 2017 HY 2018 H
Slide 12: Groupe M6: EBITDA up driven by platform revenue
Groupe M6 EBITDA up driven by growing high-margin platform revenue FAMILY OF CHANNELS Women < 50 responsible for GROUPE M61 21.1% KEY FINANCIALS +1.9% purchases, HY 2018 In € million TV ad market REVENUE EBITDA 14.6% -0.5% Others +2.2% 34.0% 6.5% 743 739 182 178 4.2% France 3 32.3% 8.4% France 2 Gro
Slide 13: RTL Nederland: significant jump in EBITDA
RTL Nederland Advertising market positive; significant jump in EBITDA FAMILY OF CHANNELS 25 to 54, Prime time, HY 2018 RTL Nederland 27.7% KEY FINANCIALS +3.2% In € million TV ad market REVENUE EBITDA Others 16.2% 26.6% +5.7% +68.4% 228 241 11.5% 32 19 25.4% 20.3% Pubcaster2 Talpa TV1 3 HY 2017 HY 2
Slide 14: FremantleMedia: Good revenue growth despite negative FX effects
FremantleMedia Good revenue growth despite negative FX effects REVENUE BRIDGE HY 2017 – HY 2018 In € million EBITDA In € million +66 (43) 639 +10 672 Acquisitions Net growth FX effects 42 42 +5.2% 1 1 HY 2017 HY 2018 HY 2017 HY 2018 Increased content aired in first six months of 2018 to 6,202 hours
Slide 15: FremantleMedia: Drama launches to come
FremantleMedia Drama launches to come – and expected timing of delivery 2018 2019 Q4 Q1 Q2 Q3 Q4 (s3) L’Amica Geniale Beecham House Dublin Murders The Luminaries Deutschland 86 Charite (s2) The Rain (s2) Baghdad Central Baghdad Central International drama expected to be more than 20% of revenue in 2
Slide 16: Agenda
Agenda 1 2 3 2018 Group Operational Strategy & highlights highlights Outlook 2018 16
Slide 17: Strategy 2018: More organic growth initiatives in two main areas
Strategy 2018 More organic growth initiatives in two main areas 1 Video-on-demand: Build local streaming champions 2 Content production: Continue push into scripted drama, explore new genres Leverage pan-EU scale to drive organic growth 17
Slide 18: Strategic priority #1: Video-on-demand hybrid product strategy
01 VOD Strategic priority #1: Video-on-demand Hybrid product strategy to attract mass audiences HYBRID “FREEMIUM” APPROACH Illustrative Hybrid 7+ day TV Exclusive content on-demand business Basic TV Premium Pre-TV and archive Full ad load model on-demand Upsell on-demand Low ad load SD quality (Ad-f
Slide 19: Expanding our direct-to-consumer businesses
01 VOD Strategic priority #1: Video-on-demand We are massively expanding our direct-to-consumer businesses Upcoming major relaunch Combining Videoland & RTL XL Salto in France More exclusive content with + clear goal to build mass-market German streaming service Merged product will Provides one-stop
Slide 20: Strategic priority #2: FremantleMedia scripted drama expansion
02 CONTENT Strategic priority #2: FremantleMedia Expansion into scripted drama is paying off INTERNATIONAL DRAMA REVENUE NEW IN 2018 COMING IN 2019 In % of total FremantleMedia revenue Working titles Drama Other +9 pp Picnic at Hanging Rock 2nd season 2nd season 3rd season My Brilliant Friend Baghda
Slide 21: We are re-inventing RTL's pioneering spirit
Summary We are re-inventing RTL’s pioneering spirit 1 Clear consumer focus 2 More Group-wide collaboration 3 Foster organic growth initiatives 4 Persistent and long-term approach 21
Slide 22: Outlook: Maintain financial guidance for full-year 2018
Outlook Maintain financial guidance for full-year 2018 2018 Guidance – Growth Rates REVENUE OUTLOOK Revenue expected to grow In % and € million 1 moderately1, in line with previous guidance Low High +2.5% 6,532 +5.0% 6,692 EBITDA OUTLOOK In % and € million 1,464 EBITDA 2018 EBITDA expected to be 1,3
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
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