Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — TF1 Group — H1 2023 Earnings Presentation
29 slides from Television Francaise 1 Sa's earnings presentation, July 2023
Slide 1: Investor Presentation Post H1 2023 Results
INVESTOR PRESENTATION POST H1 2023 RESULTS
Slide 2: TF1 Group's History: From Analog TV to Multi-Use Content Production and Broadcasting
TF1 GROUP’S HISTORY: FROM ANALOG TV TO MULTI-USE CONTENT PRODUCTION AND BROADCASTING 2022 2023 The TF1 group finalizes the sale of the UNIFY The Bouygues, RTL, TF1 and M6 groups call off Discontinuation of Salto Publishers business to Reworld Media their plan to merge TF1 and M6 New agreement with t
Slide 3: TF1 Group Plays on the Growth Markets of Content Consumption and Production
TF1 GROUP PLAYS ON THE GROWTH MARKETS OF CONTENT CONSUMPTION AND PRODUCTION Media Newen Studios BROADCASTING, DIGITAL, OTHER ACTIVITIES CONTENT PRODUCTION & DISTRIBUTION FTA CHANNELS DRAMA / SCRIPTED THEME CHANNELS DOCUMENTARIES ANIMATION NON LINEAR SERVICES ENTERTAINMENT TV MOVIES ASSOCIATED ACTIVI
Slide 4: H1 Key Performances
H1 KEY PERFORMANCES Audience growth Digital acceleration W<50PDM 25/49 y/o 33.6% 30.2% MYTF1 Advertising Revenue +0.1pt vs. H1 2022 +0.1pt vs. H1 2022 30.6m Streamers in May +12.8% vs. H1 2022 +0.6pt vs. H1 2022 +0.2pt vs. H1 2022 Source : Médiamétrie – Mediamat – and TV 4 screens Media margin Cost
Slide 5: 4 EXTRA-FINANCIAL PERFORMANCE 5 OUTLOOK 6 APPENDIX
1 MEDIA p. 6 2 NEWEN STUDIOS p. 12 3 FINANCIALS p. 16 4 EXTRA-FINANCIAL PERFORMANCE p. 21 5 OUTLOOK p. 23 6 APPENDIX p. 27 5
Slide 6: Media
MEDIA 1 LEADERSHIP ON LINEAR AND DEVELOPMENT ON NON LINEAR 6
Slide 7: Strong Performance on Commercial Targets, Widening the Gap with Competition
STRONG PERFORMANCE ON COMMERCIAL TARGETS, WIDENING THE GAP WITH COMPETITION +64% vs M6 Audience 22.9 The widest H1 gap since 2013 Share 14.0 9.3 4.4 3.5 3.4 2.9 2.9 2.8 2.6 2.4 2.0 1.9 1.8 1.7 1.6 1.3 1.3 1.2 1.1 1.0 1.0 W<50PDM 0.4 TF1 M6 F2 TMC TFX W9 C8 BFM TV 6ter F3 TF1 SF RMC St. Gulli F5 NRJ1
Slide 8: Unrivalled Reach for TV and TF1: Unique Value Proposition for Advertising Clients
UNRIVALLED REACH FOR TV AND TF1 : UNIQUE VALUE PROPOSITION FOR OUR ADVERTISING CLIENTS Nearly 50m French people were reached weekly by the Group’s content in H1 DAILY REACH PER MEDIA WEEKLY REACH FOR 50.9m 49.8m 49.2m 75% 46.4m 52% 45%* 29%* +6pt +4% +6pt 18% 16%* 14% +6% vs 2019 TV SVOD 2019 2021 2
Slide 9: Event and Serialized General Entertainment Programming on TF1 Channel
EVENT AND SERIALIZED GENERAL ENTERTAINMENT PROGRAMMING ON TF1 CHANNEL FRENCH DRAMA NEWS ENTERTAINMENT SPORTS 50 OUT OF 50 BEST RATINGS AMONG W<50PDM 49 OUT OF 50 BEST RATINGS AMONG 25/49 Y/O HPI 1ST French drama rating on TV with KOH-LANTA PRESIDENTIAL STATEMENT 6.2m viewers for the FRENCH FOOTBALL
Slide 10: Becoming the First French Free-to-View Streaming Platform
BECOMING THE FIRST FRENCH FREE-TO-VIEW STREAMING PLATFORM Powerful content, efficient both on linear and non-linear Advertising revenue €46.3M 41%* 38%* 33%* +13% Streamers 27.8m / month during H1 HPI ICI TOUT COMMENCE KOH LANTA 30.6m in May HISTORICAL RECORD SEASON 3 Streamed 542m Up to +2m streame
Slide 11: Optimisation Plan
OPTIMISATION PLAN Rationale Generate savings and reallocate resources to boost our digital SAVINGS 40+ M€ acceleration plan Targets - Gradually reach €40m+ operational costs savings Savings to originate mostly from real estate, IT, procurement and organization REINVESTMENTS - Reinvestment of €10m to
Slide 12: Newen Studios
NEWEN STUDIOS 2 HIRING TALENTS AND DEVELOPING GROWTH-DRIVING PROJECTS FOR THE YEARS AHEAD 12
Slide 13: A Multi-Genre Strategy
A MULTI-GENRE STRATEGY CINEMA • TV MOVIES • DRAMA • FILM • ANIMATION • TV MOVIE • DOCUMENTARY • SERIES • ENTERTAINMENT • NON-SCRIPTED DRAMA Demain Nous Appartient Liaison Lost Luggage Funeral For A Dog Thin Blue Line Ammo Legacy DOCUMENTARY TV MOVIES ANIMATION NON-SCRIPTED REALITY Wagner, L'armée de
Slide 14: Hiring Talents to Generate More Creativity
HIRING TALENTS TO GENERATE MORE CREATIVITY TEDDY LEIFER ANNE KOLBJORNSEN VANESSA DJIAN RISE FILMS ANAGRAM DAI DAI FILMS Producer of awarded Producer best known for Maniac Producer known for movies adapted documentaries including the Oscar- (2018) aired on Netflix from the theatre, such as Edmond nom
Slide 15: Building New Projects for the Future
BUILDING NEW PROJECTS FOR THE FUTURE In the context of a challenging market and a high basis of comparison year and year (end of Plus belle la vie for France Télévisions, delivery of Funeral for a dog in Q1 2022, end of Salto activity), Newen Studios is paving the way for 2024 and 2025. Diversified
Slide 16: Financials
3 FINANCIALS FINANCIALS 16
Slide 17: H1 2023 Consolidated Revenue
H1 2023 CONSOLIDATED REVENUE (€m) Q2 2023 Q2 2022 H1 2023 H1 2022 CHG.€m CHG.% MEDIA 485.3 543.0 904.4 1,028.5 (124.1) (12.1%) ADVERTISING REVENUE 1 405.7 438.4 746.4 815.5 (69.1) (8.5%) O/W MYTF1 ADVERTISING REVENUE 2 26.0 23.8 46.3 41.0 5.2 +12.8% NON ADVERTISING MEDIA REVENUE 3 79.6 104.6 158.0 2
Slide 18: H1 2023 Current Operating Profit from Activities per Segment
H1 2023 CURRENT OPERATING PROFIT FROM ACTIVITIES PER SEGMENT (€m) Q2 2023 Q2 2022 H1 2023 H1 2022 CHG.€m CHG.% MEDIA 104.9 115.0 146.3 172.5 (26.2) (15.2%) MARGIN 21.6% 21.2% 16.2% 16.8% - (0.6PT) NEWEN STUDIOS 7.6 15.7 6.0 19.6 (13.6) (69.4%) MARGIN 10.3% 19.0% 4.5% 12.4% - (7.9PT) CURRENT OPERATIN
Slide 19: H1 Consolidated Income Statement
H1 CONSOLIDATED INCOME STATEMENT (€m) H1 2023 H1 2022 CHG.€m CHG.% CONSOLIDATED REVENUE 1,038.1 1,186.9 (148.8) (12.5%) TOTAL COSTS OF PROGRAMMES (403.9) (440.6) 36.7 8.3% OTHER CHARGES, AMORTIZATION, PROVISION (481.9) (554.2) 72.3 13.0% CURRENT OPERATING PROFIT FROM ACTIVITIES 152.3 192.1 (39.8) (2
Slide 20: Net Cash Position Evolution in H1 2023
NET CASH POSITION EVOLUTION IN H1 2023 Free cash flow: €154.7 million 228.2 -15.4 63.0 -121.1 -1.7 365.1 €m 325.7 -113.6 Opening net cash Operating Lease obligations Change in operating Net capital Acquisitions Dividends, Others Closing net cash position cashflow1 working capital expenditure / dispo
Slide 21: Extra-Financial Performance
EXTRA- 4PERFORMANCE FINANCIAL 21
Slide 22: Renewing Our ESG Commitment
RENEWING OUR ESG COMMITMENT ENVIRONMENTAL SOCIAL AND ETHICS TRANSITION ISSUES SOCIETAL ISSUES ISSUES THE GROUP’S EXTRA-FINANCIAL PERFORMANCE IS RECOGNIZED BY THE LEADING RATING AGENCIES COMMITMENT TO REDUCING CARBON GENDER EQUALITY IN MANAGEMENT EMISSIONS BY 30% WITHIN THE 2030 RANKED 1ST CLIMATE RO
Slide 23: Outlook
ro OUTLOOK H1 2023 INV
Slide 24: A Strong Line Up to Maximise Our Market Share
A STRONG LINE UP TO MAXIMISE OUR MARKET SHARE A large scale event New exclusive features reinforcingattractivity 20 matches on prime time at 9pm from Thursday to Sunday 3 France group matches Editorial innovation on MYTF1 on web and smartphone 2 quarter finals 2 semi finals Exclusive partnership wit
Slide 25: Strategy
STRATEGY MAXIMIZE THE VALUE OF OUR LINEAR INVENTORY THROUGH OUR SUPERIOR LINE UP AND INCREASINGLY DIFFERENTIATED REACH ESTABLISH OURSELVES AS THE FIRST FRENCH FREE-TO-VIEW STREAMING SERVICE – LEVERAGE OUR LINEAR CONTENT TO UNDERPIN OUR NON LINEAR DEVELOPMENT – MAXIMIZE THE VALUE OF OUR DIGITAL INVEN
Slide 26: Outlook Confirmed
OUTLOOK CONFIRMED ACCELERATION ON DIGITAL BROADLY STABLE MARGIN* * Current Operating Profit from Activities margin AIMING AT A GROWING OR STABLE DIVIDEND POLICY 26
Slide 27: Appendix Financials
6 APPENDIX FINANCIALS 27
Slide 28: 2022 Key Results
2022 KEY RESULTS (€m) 2022 2021 CHG. €M CHG. % TF1 group advertising revenue 1,668.8 1,694.6 (25.8) -1.5% Revenue from other activities 838.9 732.5 106.4 14.5% Media 2,079.8 2,091.5 (11.7) -0.6% Advertising revenue* 1,668.9 1,694.1 (25.2) -1.5% o/w digital advertising revenue 128.2 142.5 (14.3) -10.
Slide 29: Investor Relations Contacts
Pierre-Alain GÉRARD – VP Finance, Strategy & Procurement IR team pagerard@tf1.fr comfi@tf1.fr Stéphane FEIST– Head of Investor Relations sfeist@tf1.fr TF1 1 Quai du Point du Jour 92 656 Boulogne-Billancourt Cedex Anaïs AMGHAR – Investor Relations France aamghar@tf1.fr https://www.groupe-tf1.fr/en 29