Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — TF1 Group — H1 2024 Earnings Presentation
42 slides from Television Francaise 1 Sa's earnings presentation, 2024
Slide 1: Investor Presentation Post H1 2024 Results
INVESTOR PRESENTATION POST H1 2024 RESULTS
Slide 2: Disclaimer
DISCLAIMER This presentation contains rounded figures and contains forward-looking information and statements about the TF1 group. Forward-looking statements are statements that are not historical facts, and include, but are not limited to: financial projections, forecasts and estimates and their un
Slide 3: Agenda
1 WHO WE ARE STRATEGY UPDATE P.4 P.8 2 H1 2024 FINANCIALS SEGMENT DEEP DIVE P.16 P.23 3 EXTRA-FINANCIAL PERFORMANCE SHARE INFORMATION P.31 P.33 4 APPENDIX P.35 INVESTOR PRESENTATION 3
Slide 4: Who We Are
1 WHO WE ARE INVESTOR PRESENTATION 4
Slide 5: TF1 Group's History
TF1 GROUP’S HISTORY 1987 The Bouygues group becomes reference 2018 shareholder of the TF1 channel 2024 First distribution agreements signed with the French telecom operators Launch of TF1+ to become the leading free Acquisition of the aufeminin group streaming platform in France 2020 1991 First step
Slide 6: TF1 Group's Activities: Broadcasting, Streaming and Production
TF1 GROUP’S ACTIVITIES: BROADCASTING, STREAMING AND PRODUCTION MEDIA BROADCASTING, STREAMING, OTHER ACTIVITIES NEWEN STUDIOS CONTENT PRODUCTION & DISTRIBUTION 2023 revenue: €2bn 2023 revenue: €329m FTA DRAMA / CHANNELS SCRIPTED THEME CHANNELS DOCUMENTARIES ANIMATION STREAMING SERVICES DISTRIBUTION T
Slide 7: H1 Highlights
H1 HIGHLIGHTS ADVERTISING REVENUE GROWTH STRONG DYNAMIC FOR GROWTH IN LINEAR IN LINEAR AND STREAMING ADVERTISING REINFORCED AUDIENCE LEADERSHIP Group advertising revenue Digital advertising revenue Linear advertising revenue +7.4% +40.4% +5.3% W<50PDM 25-49 Y/O vs H1 2023 vs H1 2023 vs H1 2023 34.6%
Slide 8: Strategy Update
2 STRATEGY UPDATE INVESTOR PRESENTATION 8
Slide 9: Ambition
ESTABLISH OURSELVES AS THE PRIMARY FREE-TO-AIR AMBITION DESTINATION ON THE TV SCREEN FOR NEWS AND FAMILY ENTERTAINMENT ON FRENCH-SPEAKING MARKETS INVESTOR PRESENTATION 9
Slide 10: Strategy
STRATEGY STRENGTHEN THE GROUP’S LEADERSHIP IN THE LINEAR ADVERTISING MARKET, through a premium content offering and a differentiating reach BECOME THE LEADING FREE STREAMING PLATFORM IN FRANCE, by leveraging the power of our editorial line and maximising the value of our digital inventory by strengt
Slide 11: Market Momentum: A Strategic Opportunity
MARKET MOMENTUM: A STRATEGIC OPPORTUNITY VIDEO CONSUMPTION “ON-DEMAND” THE VIDEO ADVERTISING SHIFTS TO “ON-DEMAND” CONSUMPTION IS DRIVEN MARKET IS GROWING BY THE TV SCREEN STRONGLY IN FRANCE TV viewing time + long format video 1 Share of TV screen in on-demand long-format Video advertising market 3
Slide 12: Linear: Consolidate Our Market Share
LINEAR: CONSOLIDATE OUR MARKET SHARE A TV AD MARKET FLATTISH OVER TIME A GROWING MARKET SHARE FOR TF1 GROUP TF1’S €billion %, classic only MARKET SHARE €3.2BN 3.3 3.2 2.9 3.3 3.3 3.1 CLASSIC + SPONSORING GROWING IN A 45.9% 47.0% RESILIENT 2.9 CLASSIC ONLY MARKET 2017 2018 2019 2020 2021 2022 2023 20
Slide 13: Create the Leading Ad-Supported Free-to-View Streaming Platform
CREATE THE LEADING AD-SUPPORTED FREE-TO-VIEW STREAMING PLATFORM Streamed hours Ad CPM KPI Awareness Reach = Streamers x Usage Inventories 3x linear CPM GROW DIGITAL LINE-UP AD LOAD DATAISATION REVENUE MARKETING ACCESSIBILITY INNOVATIVE LEVERS TECH STACK ADVERTISING CAMPAIGNS UX/ FORMATS VISIBILITY I
Slide 14: Capitalize on a Solid Track Record
CAPITALIZE ON A SOLID TRACK RECORD SYNERGIES WITH MEDIA SEGMENT EXCITING PROJECTS AND PARTNERSHIPS Newen Studios supporting TF1’s digital acceleration Expertise in animation, drama and local strategy with entertainment recognized with successful the success launches calling for future partnerships o
Slide 15: Binding Agreement to Acquire 63% of Johnson Production Group
SIGNING OF A BINDING AGREEMENT TO ACQUIRE 63% OF JOHNSON PRODUCTION GROUP1 • Strategic move enabling Newen Studios, which already owns Reel One2, to further strengthen its ambition in the dynamic and resilient TV Packaging, financing, production movie market and distribution • Romances Privileged, l
Slide 16: H1 2024 Financials
3 H1 2024 FINANCIALS INVESTOR PRESENTATION 16
Slide 17: Consolidated Revenue
CONSOLIDATED REVENUE (€m) Q2 2024 Q2 2023 CHG.% H1 2024 H1 2023 CHG.% MEDIA MEDIA 530.4 485.3 9.3% 983.5 904.4 8.7% Solid growth in linear and digital advertising revenue in H1 (+7.4%) ADVERTISING REVENUE 438.2 405.7 8.0% 801.5 746.4 7.4% Strong advertising revenue growth for TF1+ (+40.4%), reflecti
Slide 18: Current Operating Profit from Activities per Segment
CURRENT OPERATING PROFIT FROM ACTIVITIES PER SEGMENT MEDIA (€m) Q2 2024 Q2 2023 CHG.% H1 2024 H1 2023 CHG.% Programming costs up €55m, including Euro 2024 MEDIA 88.3 104.9 (15.8%) 124.9 146.3 (14.6%) TF1+: O/W PROGRAMMING COSTS (241.7) (203.3) 18.9% (458.9) (403.9) 13.6% • One-off costs related to t
Slide 19: Update on Optimisation Plan
UPDATE ON OPTIMISATION PLAN TARGETS SAVINGS €40m+ More than BY 2025 RATIONALE GRADUALLY REACH €40m+ OPERATIONAL COSTS SAVINGS 55% Savings to originate mostly from secured at end-June real estate, IT, procurement and GENERATE organisation SAVINGS AND REALLOCATE RESOURCES REINVESTMENT TO BOOST OUR DIG
Slide 20: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (€m) Q2 2024 Q2 2023 CHG.% H1 2024 H1 2023 CHG.% CONSOLIDATED REVENUE 592.0 558.4 6.0% 1,103.9 1,038.1 6.3% COSTS OF PROGRAMMES (241.7) (203.3) 18.9% (458.9) (403.9) 13.6% OTHER CHARGES. DEPRECIATION, AMORTISATION AND PROVISIONS (258.8) (242.7) 6.6% (516.2) (481.9) 7.1%
Slide 21: Solid Net Cash Position at End-June 2024
SOLID NET CASH POSITION AT END-JUNE 2024 Free cash flow before changes in WCR €75.5 million 222.6 (5.3) 505.1 (141.8) (10.2) (7.8) 446.5 €m (116.1) Free cash flow after changes in WCR €65.3 million Opening net cash Operating Lease Net capital Change in Acquisitions Dividends, Closing net cash positi
Slide 22: 2024 Guidance
2024 GUIDANCE GROWTH IN DIGITAL 2024 BROADLY STABLE COPA MARGIN A DEFINING YEAR FOR THE GROUP’S TRANSFORMATION AIMING AT A GROWING DIVIDEND POLICY INVESTOR PRESENTATION 22
Slide 23: Segment Deep Dive
4 SEGMENT DEEP DIVE INVESTOR PRESENTATION 23
Slide 24: Media
MEDIA SEGMENT DEEP DIVE
Slide 25: Reinforced Leadership on Commercial Targets in H1
REINFORCED LEADERSHIP ON COMMERCIAL TARGETS IN H1 UNRIVALLED DAILY REACH GAP WIDENED WITH MAIN COMPETITOR 78% 34.6 +10.1 pts vs main competitor, W<50PDM 54% 23.3 WIDEST GAP IN 14 YEARS 13.2 32% 8.3 4.7 4.3 3.4 2.8 2.6 2.5 2.2 1.9 0.4 0.4 18% TF1 M6 F2 TMC W9 TFX TF1SF F3 6ter Gulli F5 LCI F.info +1.
Slide 26: Solid Line-up in H1, Performing Well in Linear and Streaming
SOLID LINE-UP IN H1, PERFORMING WELL BOTH IN LINEAR AND IN STREAMING STRONG PERFORMANCE ACROSS ALL DAY-PARTS VIRTUOUS LINEAR & STREAMING STRATEGY 25-49 Y/O LINEAR NON-LINEAR* 78% 22% +8 pts yoy 1:40pm 2pm 6:45pm 8pm 9pm 11pm Daily soaps Unscripted French series 57% 43% 68% 32% 65% 35% 26% 18% 19% Da
Slide 27: Successful Launch of TF1+: On Track on All Building Blocks
SUCCESSFUL LAUNCH OF : ON TRACK ON ALL BUILDING BLOCKS H1 priority Current focus Awareness Visibility Consumption Ad Inventories CPM Streamed hours 3 Aided awareness First visibility 594m Ad load CPM +10% (Médiamétrie) 77% 1 for 54% 2 +58% (Site centric 4) 5min/hour €12/CPM Streamers 3 at end-May of
Slide 28: Newen Studios
NEWEN STUDIOS SEGMENT DEEP DIVE
Slide 29: A Key European Player with a Multi-Genre Portfolio
A KEY EUROPEAN PLAYER WITH A MULTI-GENRE PORTFOLIO 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 All That Breathes The Territory Her Magical Les Mystérieuses Insiders l'ombre de P
Slide 30: H1 Highlights: Newen Studios
H1 HIGHLIGHTS STRONG ASSETS TO BUILD THE FUTURE Revenue of €120.4m in H1 2024, with activity mostly skewed to H2; COPA at €3.9m Historical DRAMA/ENTERTAINMENT CINEMA records for daily soaps UNSCRIPTED New talents joining the Studios Theatrical Distribution Co-production Theatrical Theatrical Normali
Slide 31: Extra-Financial Performance
EXTRA- 5 FINANCIAL PERFORMANCE INVESTOR PRESENTATION 31
Slide 32: ESG Key Achievements
ESG KEY ACHIEVEMENTS COMMITMENT TO REDUCING CARBON GENDER EQUALITY IN MANAGEMENT RECOGNITION BY THE LEADING EMISSIONS BY 30% (1) WITHIN THE 2030 AND IN OUR CONTENT RATING AGENCIES (2) CLIMATE ROADMAP 48 % SCOPES 1 AND 2 SCOPE 3a of women in the -42 % -25 % management committee RANKED 1ST in Broadcas
Slide 33: Share Information
6 SHARE INFORMATION INVESTOR PRESENTATION 33
Slide 34: Share Ownership & Stock Market Information
SHARE OWNERSHIP & STOCK MARKET INFORMATION OWNERSHIP STRUCTURE* COVERAGE & RECOMMENDATIONS STOCK MARKET INFORMATION Quote: Euronext Paris 12% 8 ANALYSTS Market: Compartment A ISIN: FR0000054900 CFI: ESVUFN ICB: 403010 Media 46% 63% BUY Ticker: TFI 37% NEUTRAL Major Market Indexes: 31% • SBF 120 • CA
Slide 35: Appendix
7 APPENDIX INVESTOR PRESENTATION 35
Slide 36: FY23 Consolidated Revenue
FY23 CONSOLIDATED REVENUE (€m) FY 2023 FY 2022 CHG.% MEDIA MEDIA 1 1,967.3 2,079.9 (5.4%) Advertising impacted by macro ADVERTISING REVENUE 2 1,606.4 1,668.9 (3.7%) in H1; up +1.7% in H2 O/W MYTF1 ADVERTISING REVENUE 3 104.5 90.3 15.7% Sustained double-digit annual growth for MYTF1 NON ADVERTISING M
Slide 37: FY23 Current Operating Profit from Activities per Segment
FY23 CURRENT OPERATING PROFIT FROM ACTIVITIES PER SEGMENT (€m) FY 2023 FY 2022 CHG.% MEDIA MEDIA 256.2 270.1 (5.1%) Stable FY margin: cost discipline and good advertising performance in H2 MARGIN 13.0% 13.0% +0.0 pt NEWEN STUDIOS 31.2 52.1 (40.1%) NEWEN STUDIOS Double-digit Q4 margin, MARGIN 9.5% 12
Slide 38: FY23 Consolidated Income Statement
FY23 CONSOLIDATED INCOME STATEMENT (€m) FY 2023 FY 2022 CHG.% CONSOLIDATED REVENUE 2,296.7 2,507.7 (8.4%) TOTAL COSTS OF PROGRAMMES (960.2) (987.0) (2.7%) OTHER CHARGES. AMORTIZATION. PROVISION (1,049.1) (1,198.5) (12.5%) CURRENT OPERATING PROFIT FROM ACTIVITIES 287.4 322.2 (10.8%) CURRENT OPERATING
Slide 39: Net Cash Position Evolution at End-December 2023
NET CASH POSITION EVOLUTION AT END-DECEMBER 2023 NET CASH POSITION Free Cash Flow before changes in WCR €178.1 million +€179.4m 502.4 year on year -26.5 136.2 -4.5 505.1 -299.0 -129.2 325.7 €m Free Cash Flow after changes in WCR €313.1 million Opening net cash Operating Lease Net capital Change in A
Slide 40: Growing Dividend Policy
GROWING DIVIDEND POLICY 2018-2023 EVOLUTION €0.55 (€/SHARE) CAGR +7% 8% DIVIDEND YIELD2 € 116.0m 1 €0.40 €0.45 €0.45 €0.50 € 0.552 PER SHARE €0.0 2018 2019 2020 2021 2022 2023 COVID 1 Based on 210,897,781 shares at 31/12/2023 2 Based on the closing price on 31/12/2023 (€7.14) INVESTOR PRESENTATION 4
Slide 41: Slide 41
Slide 42: Contact
CONTACT PIERRE-ALAIN GÉRARD – EVP FINANCE, STRATEGY & PROCUREMENT ADRIEN WIART– HEAD OF M&A, INVESTOR RELATIONS & BUSINESS PLAN STÉPHANE FEIST– HEAD OF INVESTOR RELATIONS sfeist@tf1.fr ANAÏS AMGHAR – SENIOR INVESTOR RELATIONS OFFICER aamghar@tf1.fr TF1 GROUP INVESTOR RELATIONS TEAM 1 Quai Du Point D