Slide 1: H1 Results 2017
ER RESIS 201 3
Slide 2: Agenda
Agenda 1 2 3 4 2017 Group Group Operational Future proofing our highlights financials highlights business and Outlook 2
Slide 3: Group highlights: 'Total Video' strategy paying off
Group highlights 'Total Video' strategy paying off Solid performance in challenging TV ad A Revenue growth markets, content revenue moderately up Dependency on TV advertising below 50%, B Diversified revenue streams high growth in digital and platform revenue ‘Total Video’ approach accelerating, C C
Slide 4: Solid interim financial results
Revenue growth A Solid interim financial results +3.5% EBITDA Margin Revenue € 2,978 million EBITDA € 626 million 21.0% EBITA € 533 million € 1.00 Net Profit € 320 million interim dividend 4
Slide 5: Diversified revenue streams
Diversified revenue streams B Share of TV ad revenue below 50%, digital growing rapidly RTL GROUP HY 2017 REVENUE SPLIT DIGITAL REVENUE (in %) (in € million)1 TV advertising Other diversification +47.4% 11.3 Non-advertising Advertising Digital 13.1 389 264 Content €3.0bn 48.7 17.5 Platform revenue1
Slide 6: TV platform revenues continuing to grow by double-digits
Diversified revenue streams B TV platform revenues are continuing to grow by double-digits RTL GROUP HY 2017 REVENUE SPLIT RTL GROUP PLATFORM REVENUE (in %) (in € million)1 TV advertising Other diversification HD channels 11.3 +18.7% Digital 159 13.1 Thematic Content €3.0bn 48.7 VOD (managed/OTT) 17
Slide 7: RTL Group transitioning to 'Total Video'
Consistent strategy C RTL Group transitioning to 'Total Video' BROADCAST LINEAR TV 'Total Video' Optimise TV business and expand non-linear TV offers Transition CONTENT Total TV Video Expanding drama slate, client base and first-class talent deals DIGITAL From traditional … to a 'Total Video' Invest
Slide 8: We continue to optimise our investment portfolio
Group highlights We continue to optimise our investment portfolio $145m1 step-up to On-going review 100% ownership DIGITAL Total CONTENT Video Continue bolt-on Growth plan for EU’s BROADCAST talent strategy largest MPN Integrated TV + Radio + Sold to Blue Ant Media 1 Equivalent to approx.
Slide 9: Doubling down on SpotX – a cornerstone of our future monetisation skills
SpotX step-up Doubling down on SpotX – a cornerstone of our future monetisation skills RTL Group agreed to exercise call option and acquire remaining 36.4% of SpotX Growing client base Already advanced to a Close collaboration between on global platform leading global ad-stack Smartclip and SpotX 1
Slide 10: Agenda
Agenda 1 2 3 4 2017 Group Group Operational Future proofing our Highlights financials highlights business and Outlook 10
Slide 11: Q2/2017: Strong revenue growth
Review of results 30 June 2017 Q2/2017: Strong revenue growth Quarter to Quarter to Per cent (in € million) 30 June 2017 June 2016 change Revenue 1,573 1,446 +8.8 Reported EBITDA 362 391 (7.4) Reported EBITDA margin (%) 23.0 27.0 Adjusted EBITDA1 362 348 +4.0 Adjusted EBITDA margin (%) 23.0 24.1 Rep
Slide 12: H1/2017: Moderate revenue growth
Review of results 30 June 2017 H1/2017: Moderate revenue growth Half-year to Half-year to Per cent (in € million) June 2017 June 2016 change Revenue 2,978 2,878 +3.5 Underlying revenue 2,938 2,874 +2.2 Operating cost base 2,494 2,413 +3.4 EBITDA 626 679 (7.8) EBITDA margin (%) 21.0 23.6 Adjusted EBI
Slide 13: Bridge from EBITDA to net profit
Review of results 30 June 2017 Bridge from EBITDA to net profit Half-year to Half-year to Per cent (in € million) June 2017 June 2016 change Reported EBITDA 626 679 (7.8) Depreciation, amortisation and impairment (101) (107) Re-measurement of earn-out arrangements and gain / (loss) from sale of subs
Slide 14: Lower cash generation reflects FremantleMedia's drama investments
Review of results 30 June 2017 Lower cash generation reflects FremantleMedia’s drama investments Half-year to Half-year to (in € million) June 2017 June 2016 Net cash flow from operating activities 214 403 Add: Income tax paid 264 190 Less: Acquisition of assets, net (62) (82) Equals: Reported free
Slide 15: Agenda
Agenda 1 2 3 4 2017 Group Group Operational Future proofing our highlights financials highlights business and Outlook 15
Slide 16: We continue to strengthen our competitive position
Operational highlights We continue to strengthen our competitive position Increased audience Outperforming lead over P7S1 TV ad market BROADCAST Total Video CONTENT Drama business Returning in 2018 growing rapidly DIGITAL 32bn VIEWS/month Strong subscriber growth: #1 Global MPN +40% in l
Slide 17: Out-performing TV advertising market
Mediengruppe RTL Deutschland Out-performing TV advertising market … FAMILY OF CHANNELS 14 – 59, HY 2017 MG RTL 29.1% KEY FINANCIALS -2 to -3% (in € million) TV ad market REVENUE EBITDA 11.8% +3.5% Others 23.5% 6.9% 1,075 -0.8% 1,039 10.4% 368 365 ARD-III 7.1% 7.8% ARD 8.2% 24.3% ZDF P7S1 HY 2016 HY
Slide 18: …and also growing audience share lead over P7S1
Mediengruppe RTL Deutschland …and also growing audience share lead over P7S1 FAMILY OF CHANNELS 14 – 59, HY 2017 MG RTL 29.1% ACCESS PRIME TIME PRIME TIME (17 – 20h) 14 – 59 (in %) (20 – 23h) 14 – 59 (in %) 11.8% +4.5 pp +4.3 pp Others 23.5% 6.9% 28.7 27.5 24.2 10.4% 23.2 ARD-III 7.1% 7.8% +1.2pp +0
Slide 19: Groupe M6: Continues to out-perform TV ad market
Groupe M6 Continues to out-perform TV ad market FAMILY OF CHANNELS Women < 50 responsible for GROUPE M6 21.8% KEY FINANCIALS -0.4% purchases (in %), HY 2017 (in € million) TV ad market REVENUE EBITDA 15.2% +2.5% Others 34.3% 648 664 -16.9% 6.6% 207 172 France 3 3.5% 164 32.3% 8.1% France 2 Groupe TF
Slide 20: RTL Nederland: Strong audience performance in tough market
RTL Nederland Strong audience performance in tough market FAMILY OF CHANNELS 20 – 49, Primetime (in %), RTL Nederland 31.9% KEY FINANCIALS -6.2% (in € million) TV ad market HY 2017 REVENUE EBITDA Others 18.1% 23.9% -4.2% -33.3% 236 226 13.8% 30 20 24.9% 19.3% Pubcaster SBS HY 2016 HY 2017 HY 2016 HY
Slide 21: Other markets: Mixed picture across Europe
Other markets Mixed picture across Europe Revenue EBITDA (in € million) BELGIUM 96 Clear market leader Lower revenue in weak 19 HUNGARY 51 ad market Higher platform revenue EBITDA up including 18 one-off ad tax FRENCH RADIO 79 reimbursement #1 Radio in France Lower revenue 6 and EBITDA C
Slide 22: FremantleMedia: Moderate revenue and EBITDA growth
FremantleMedia Moderate revenue and EBITDA growth driven by… REVENUE BRIDGE HY2016 – HY2017 Absence of (in € million) EBITDA American Idol in H1/17 (in € million) more than compensated +37 (9) 648 +2 618 +2.6% Scope effects FX Net growth 39 40 +4.9% HY 2016 HY 2017 HY 2016 HY 2017 Increased content
Slide 23: A strong drama performance, especially by American Gods
FremantleMedia … a strong drama performance, especially by American Gods Ratings Successful season with 94% Critics both critics & audiences¹ 84% Audiences 3rd best original series debut for Starz, renewed for a 2nd season Among top 10 downloaded series on Amazon Prime Video in the UK² 1 Refers to r
Slide 24: 2002 2005 2009 2018
2002 2005 2009 2018 24
Slide 25: Multi-platform networks: Global No. 1 position in YouTube ecosystem
Multi-platform networks Global No. 1 position in YouTube ecosystem RTL GROUP TOTAL VIDEO VIEWS1 HY2016 – HY2017 (in billions) 32bn BBTV StyleHaul Divimove Broadcasters/Fremantle Media 192.8 views/month #1 Global MPN 123.1 #1 Fashion MPN +57% 154.8 #1 MPN in EU 90.6 HY2016 HY2017 1 Internal figures i
Slide 26: Agenda
Agenda 1 2 3 4 2017 Group Group Operational Future proofing our Highlights financials highlights business and Outlook 26
Slide 27: Future proofing our business: We continue to invest for the future
Future proofing our business and Outlook We continue to invest for the future 15% stake in New data alliances Total VR start-up in DE & FR Video INNOVATION Expanding int’l Close collaboration ‘Total Video’ sales house 27
Slide 28: RTL AdConnect: Launch of 1st international 'Total Video' sales house
RTLAdConnect Launch of 1st international 'Total Video' sales house Unique 'Total Video' footprint ‒ 100 TV channels, 30 radio stations, ‒ 300 digital platforms in 12 markets Reaching more audiences ‒ 160m TV viewers every day ‒ 26bn video views per month Providing innovative solutions ‒ From b
Slide 29: Investment in Virtual Reality
Innovation Investment in Virtual Reality Acquisition of 15% minority stake in Israeli VR/AR start-up VR startup founded in 2016 in Tel Aviv Leading next generation content network Top 5 entertainment virtual reality app End-to-end production, tech and distribution skills Focused on produci
Slide 30: Outlook: Maintain financial guidance for full-year 2017
Outlook Maintain financial guidance for full-year 2017 Revenue expected to grow 1 moderately, in line with previous guidance Reported EBITDA expected 2 to be broadly stable 30
Slide 31: 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
Slide 32: Thank you
THANK YOU Entertain. Inform. Engage.