Rtl Group S.a. · LUXSE:RTLL
Rtl — Non-Deal Roadshow (September 2014)
28 slides from Rtl's roadshow presentation, September 2014
Slide 1: The leading European Entertainment network: Canada & United States
The leading European Entertainment network Canada & United States September 2014
Slide 2: Agenda
Agenda 1 22 3 2014 4 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 2
Slide 3: Sound results in tough economic environment
1 2 3 4 5 Sound results in tough economic environment 90% € 2,687 million Revenue Cash conversion rate Interim extraordinary 19.3% EBITA Margin € 2.00 dividend € 519 million Reported EBITA € 202 million Net profit 3
Slide 4: Agenda
Agenda 1 2 3 2014 4 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 4
Slide 5: Mediengruppe RTL Deutschland: Audience impacted by sports events
1 2 3 4 Mediengruppe RTL Deutschland Audience impacted by sports events FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %) 14 – 59 (in %) -1.4 +/-0 -0.3 +0.7 +1.1 -1.0 32.4 32.6 13.1 31.5 31.3 9.4 9.4 9.2 30.6 8.2 RTL 6.6 29.2 27.4 26.9 26.0 25.2 25.2 25.2 RTL Sat 1 Pro 7 ZDF ARD Vox P7S1 -0.3 -0.2 -0.1 +
Slide 6: Mediengruppe RTL Deutschland: Record EBITA on stable revenue
1 2 3 4 Mediengruppe RTL Deutschland Record EBITA on stable revenue NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) HY 2014 vs. HY 2013 (in %) REVENUE EBITA +0% 33.0% ROS 33.8% 927 927 +2.3% +2.0 to 3.0% Mediengruppe 313 RTL Deutschland 306 Market -1.1% HY 2013 HY 2014 HY 2013 HY
Slide 7: Groupe M6: Resilient audience; growth continues for 6ter
1 2 3 4 Groupe M6 Resilient audience; growth continues for 6ter FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) -0.3 -0.9 +/-0 -0.1 34.1 33.3 33.0 32.6 32.2 32.2 Groupe 24.3 TF1 15.5 10.0 4.3 21.5 21.2 21.0 20.5 20.4 20.5 Groupe M6 TF1 France 2 France 3 M6
Slide 8: Groupe M6: No sign of advertising market improvement
1 2 3 4 Groupe M6 No sign of advertising market improvement NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) HY 2014 vs. HY 2013 (in %) REVENUE EBITA -3.5% 18.3% ROS 16.9% Market M6 TF1 694 670 -1.0 -11.0% < -2.4 -3.7 127 113 HY 2013 HY 2014 HY 2013 HY 2014 Market: RTL Group estim
Slide 9: RTL Nederland: Good audience performance despite sports events
1 2 3 4 RTL Nederland Good audience performance despite sports events FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %) 20 – 49, Primetime (in %) 35.2 -0.3 +5.0 +0.5 -2.7 +0.1 33.5 18.6 19.5 32.9 RTL 32.3 31.8 31.7 9.0 29.1 5.5 5.3 28.3 27.3 28.3 25.3 25.3 RTL 4 Ned 1 SBS 6 Ned 3 RTL 5 26.8 24
Slide 10: RTL Nederland: Strong revenue and EBITA growth
1 2 3 4 RTL Nederland Strong revenue and EBITA growth NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) HY 2014 vs. HY 2013 (in %) REVENUE EBITA +6.7% 18.1% ROS 19.6% Market RTL Nederland 224 8.2 +15.8% 210 44 1.7 38 HY 2013 HY 2014 HY 2013 HY 2014 Source: RTL Group estimates 10
Slide 11: FremantleMedia: Difficult first half year
1 2 3 4 FremantleMedia Difficult first half year KEY FINANCIALS REVENUE BRIDGE HY 2013 – HY 2014 (in € million) (in € million) REVENUE EBITA 63 59 666 666 19 47 20 7.1% ROS 4.7% 623 623 47 Negative New Shows not Volume Other FX shows renewed decreases 29 HY 2013 HY 2014 HY 2013 HY 2014 HY 2013 HY 20
Slide 12: Agenda
Agenda 1 2 3 2014 4 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 12
Slide 13: RTL Group Outlook for 2014
1 2 3 2014 4 RTL Group Outlook for 2014 Weaker economic environment in France, the special 1 situation in Hungary and financial performance of FremantleMedia lead to slightly lower full year guidance RTL Group now expects its revenue to be slightly down 2 with EBITA to be down more significantly RTL
Slide 14: Agenda
Agenda 1 2 3 2014 4 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 14
Slide 15: Broadcast: Retransmission fees continuing to grow
1 2 3 4 Broadcast Retransmission fees continuing to grow Strong growth in HD ... ... with further potential RTL GROUP PLATFORM REVENUE HD SUBSCRIBERS, GERMANY (in € million) (in million) (in million households) 1 36.7 +16.3% +29.7% Analogue TV 7.7 100 4.8 3.7 4.2 HD Digital TV 24.2 TECHNICAL 86 POTE
Slide 16: Online video is at the heart of RTL Group's digital strategy
1 2 3 4 Digital Online video is at the heart of RTL Group’s digital strategy Strategic focus Strong growth Digital revenue increasing VIDEO VIEWS RTL GROUP RTL GROUP DIGITAL REVENUE Catch-up (in billion) (in € million) 1 VOD TV services +226% +10% 113 Web New content 15.7 2 originals production 4.8
Slide 17: Our MCN businesses show high growth
1 2 3 4 Digital Our MCN businesses show high growth … VIDEO VIEWS DEVELOPMENT (in billion) +123% +97% >200% 9.5 4.3 3.6 1.8 2.1 0.3 HY 2013 HY 2014 HY 2013 HY 2014 HY 2013 HY 2014 REVENUE 2.3x 2.6x 5.3x GROWTH #3 MCN Globally #1 Style #1 MCN Europe Source: Internal measurement Note : Stylehaul parti
Slide 18: Making RTL Group one of the worldwide leaders
1 2 3 4 Digital Making RTL Group one of the worldwide leaders Growing online video business Top 5 worldwide RTL Group online video views in billion 35.0 5.1x 16.8 6.9 2012 2013 2014e *ComScore Video Metrix, based on monthly average video views in H1/2014; excluding Asia and Russia, ad networks and a
Slide 19: … and will be complemented by recent acquisition
1 2 3 4 Digital … and will be complemented by recent acquisition … Build premium Build scale in Build new sales competencies non-linear web original with cornerstone investment in digital video services and short-form video programmatic advertising ✔ Continuing SpotXchange’s impressive growth path ✔
Slide 20: Partnering with SpotXchange in fast growing market
1 2 3 4 Digital Partnering with SpotXchange in fast growing market Global market for online video advertising In USD billion IMPROVE MONETISATION SKILLS 24.8 TV Content 3.1x 9.4 Traditional (long-form) Leading video ad Web original monetization content platform 8.1 Aggregation via 15.4 Programmatic
Slide 21: SpotXchange, a leading platform for online video
1 2 3 4 Digital SpotXchange, a leading platform for online video SpotXchange company overview International scale and fast growth o One of the largest, fastest growing and most transparent SpotXchange Served impressions in global marketplaces for online video advertising offices 2013 o Founded in 20
Slide 22: Offering high efficiency via automation
1 2 3 4 Digital Offering high efficiency via automation A Impression-based audience buying (programmatic) B Auction-based sales (real-time-bidding) Traditional: Inventory buyingNew: Programmatic buying 1 User visits video site Ad Space $ 10 CPM 2 Impression info sent to exchange All for $ 12 CPM $30
Slide 23: Ranked in top 5 video ad properties in the US
1 2 3 4 Digital Ranked in top 5 video ad properties in the US ComScore US online video advertising ranking Q1/2014 Average monthly video ad views In billion ad views Acquired by RTL Group in July 2014 #4 3.3 3.1 3.0 2.7 2.7 Acquired by Facebook in June 2014 Acquired by AOL in August 2013 1 2 3 4 5 A
Slide 24: Managing billions of transactions across brands & publishers
1 2 3 4 Digital Managing billions of transactions across brands & publishers Ad impressions managed by SpotXchange Integrated with the most buying Monthly average in billion Working with more than half of partners (demand sources) in industry ComScore’s top 100 publishers 3+ billion 1,000+ brand nam
Slide 25: Partnership combines competencies, technology and footprint
1 2 3 4 Digital Partnership combines competencies, technology and footprint + Strong ad sales presence in Europe ✔ ✔ Strengthen international Strong ad sales presence in US market position & APAC ✔ ✔ Strong premium sales houses ✔ ✔ Diversify sales Strong in data-driven, automated capabilities sales
Slide 26: Priorities for 2014 and beyond
1 2 3 4 Digital Priorities for 2014 and beyond 1 Grow ✔ online business 2 Expand ✔ non-linear services 3 Develop ✔ multi-channel network business 4 Strengthen ✔ online advertising sales capabilities 26
Slide 27: The leading European Entertainment network: Canada & United States
The leading European Entertainment network Canada & United States September 2014
Slide 28: Growth potential in Germany as print loses share
Growth potential in Germany as print loses share TV’S AD SHARE IN MEDIA MIX 2013 45% In % of total ad spend 38% +1pp 30% Growth 27% 25% potential 23% GER NED UK FRA ESP USA Print ad share 40% 31% 20% 23% 22% 22% Print ad share -3pp -6pp -4pp -4pp -2pp -4pp development Source: Screen Digest 2013; dev