Reworld Media SA · EURONEXT:ALREW
Reworld Media SA — FY2019 Earnings Presentation
31 slides from Reworld Media SA's earnings presentation, Mar 18, 2020
Slide 1: Annual Results 2019 Presentation
ANNUAL PRESENTATION f REWORLD MEDIA REsutTs 2019 18 March 2020 INSIGHTS CONTENTS VIDEO DIGITAL DATA PRINT EVENT
Slide 2: A proven and profitable model, proprietary content, growth markets
• A PROVEN AND PROFITABLE MODEL • PROPRIETARY CONTENT AND AUDIENCES • STRONG AND SUSTAINABLE GROWTH MARKETS 2
Slide 3: Key figures: pro forma revenue, EBITDA, employees, brands
€462.2m in annual pro forma revenues €40.4m in pro forma EBITDA 970 employees - 11 countries 42 media brands 29m people reached in France every month* 3 *Source One Global 2019
Slide 4: Continuity of operations and Coronavirus impact
Reworld Media has implemented initiatives to ensure the continuity of its operations all employees are teleworking. In light of the uncertainties due to the Coronavirus epidemic, Reworld Media is currently unable to quantify the impacts of the measures taken in an effort to stem the epidemic, and of
Slide 5: Change in revenue and EBITDA 2013-2019
Change in revenue and EBITDA 2013-2018 consolidated figures, 2019 pro forma figures (€m) Over 15 acquisitions since the Group’s founding, 4 of major magnitude 500 462,2 45 Mondadori France integrated 450 40 Revenue x2.6 40,4 35 400 30 350 25 300 Tradedoubler integrated 20 250 177,5 Revenue x3.6 11,1
Slide 6: Group, Print and Digital EBITDA
Print EBITDA (€m) * 32,2 Group EBITDA (€m) * 40,4 2,5 2,2 2,1 2,6 2014 2015 2016 2017 2018 2019 -3,1 Loss of Mondadori integrated in H1 11,1 2019 7,5 Digital EBITDA (€m) * 4,4 8,6 8,2 1,1 5,4 2014 2015 2016 2017 2018 2019 2,2 -7,3 2014 2015 2016 2017 2018 2019 -1,5 -4,2 * Consolidated 2014-2018 EBIT
Slide 7: Quality and independence: proprietary content and audience
Reworld Media owns 100% of its editorial content and audience editorial, video, podcasts, etc. Nearly 700,000 editorial content items on more than 20 themes 20M unique hits* Over 21,000 proprietary videos 5 M podcasts heard / month Quality Independence 6
Slide 8: Growing French communications market driven by digital
On a growing French communications market… …Digital is the driving growth and continues to gain market share Change in market share by media: Total communication investment undertaken by advertisers (€bn) €15.4Bn in investments (five traditional media, digital media & other media) excluding other me
Slide 9: French digital advertising market and Reworld positioning
On a French digital advertising market that posted 12% growth in 2019, according to the e-Pub-SRI Observatory, Reworld Media covers 2/3 of the levers available in Digital (SRI nomenclature) is positioned on the levers with the highest growth (display, affiliation, emailing): +13% on average, which b
Slide 10: 42 proprietary media brands across key universes
• 42 proprietary media brands across 6 key universes, including 31 brands acquired from Mondadori France on 31 July 2019 Health, well-being Science Auto Home Women’s Entertainment Cooking Culture Sport Outdoors 10
Slide 11: Market position in magazine publishing and digital
No. 1 magazine publisher in No. 4 thematic media Group in France Digital Market Share - Average annual 20 M unique hits / month distribution by publication NO. 1 IN CIRCULATION NO. 4 IN DIGITAL AUDIENCE 37.7 35.1 16.2% 31.5 20 M Prisma Media 12.7% CMI 8.4% UNI EDITIONS 7.4% Lagardere Group CMI Amaur
Slide 12: Print Division audiences
Print Division 8m readers, 6.1m of 6.5m readers, 5.2m of 4m readers, 3m of 5.8m readers 4.1m readers 4.2m readers whom are women whom are men whom are women 3.7m unique hits 1.5m unique hits 384,000 unique 7m unique hits 7.3m unique hits 4.7m unique hits hits No. 3 magazine No. 1 magazine No. 1 maga
Slide 13: More than €460M revenue and pro forma EBITDA of €40M
• MORE THAN €460M IN REVENUE AND PRO FORMA EBITDA AMOUNTING TO €40M • THE INTEGRATION OF NEW ASSETS BEGAN PAYING OFF FROM THE VERY FIRST MONTHS • SOLID AVENUES FOR GUARANTEEING FUTURE GROWTH
Slide 14: Consolidated revenue grew by 66% in 2019
Consolidated revenue grew by 66% in 2019, reaching €294.4m Change in consolidated revenue (€m) • Consolidated revenue Print, x3.3: €155.1m 294.4 • Consolidated revenue Digital, +6%: €139.3m +66% 177.5 139,3 47% of revenue comes from Digital operations +6.2% 35% of revenue is earned internationally 1
Slide 15: 2019 consolidated digital revenue
2019 Consolidated revenue earned in Digital: €139.3m Change in consolidated revenue in Digital (€m) 6.2% 139.3 • Continuing growth for the Digital media brands 131.1 4,4 17,1 +21% 20,7 • Revenue earned on Digital’s historical scope: €134.8m o 21% growth in the historical media brands 114,0 114,2 in
Slide 16: Consolidated EBITDA increased by a factor of 2.7
Consolidated EBITDA increased by a factor of 2.7 in 2019: €29.6m Change in consolidated EBITDA (€m) 29.6 • Consolidation of ex-Mondadori France assets: 165% 8,6 €19.6m, of which €1.2m came in Digital • Print EBITDA multiplied by a factor of 8, reaching 11.1 +1% €21.0m 21,0 8,5 x8 • Digital EBITDA up
Slide 17: Income statement: EBIT and net income
• EBIT multiplied by more than 3 In €M 31-12-18 31-12-19 Change • Financial result of -€3.9m including interest on Revenue 177.5 294.4 +66% bank loans Operating costs -166.4 -264.8 +59% • Exceptional income of -€34.6m: primarily costs EBITDA 11.1 29.6 x 2.7 stemming from restructuring (including Dep
Slide 18: Cash generated in 2019
Historical RM Acquired Périmètre In M€ En €M 2018 2018 2019 2019 RM historique scope acquis EBITDA EBITDA 11.1 11,1 10.010,0 19.6 19,6 29.6 29,6 €37 million in cash generated in 2019 Effet Cashde trésorerie impact -8.0 -8,0 -7.8-7,8 0,4 0.4 -7,4 -7.4 Flux opérationnels Operating flows 3.1 3,1 2.1 2,
Slide 19: Equity and net debt as at 31/12/2019
• Equity as at 31/12/2019: €85.2m Audited, in €m* 31-12-18 31-12-19 Equity, Group share 26.8 85.2 • Capital increases of €21.5m over the year April 2019 – capital increase of €8.95m with institutional investors December 2019 – Capital increase of €12.6m reserved for ARNOLDO MONDADORI EDITORE Audited
Slide 20: 2019 pro forma revenue and EBITDA breakdown
Breakdown of Breakdown of 2019 2019 pro forma pro forma EBITDA 2019 pro forma revenue: €462.2m revenue 31% earned in Digital 1,7% 2,20% • €144.9m in Digital revenue 18,5% • €317.3m in Print revenue 6,2% 29,20% 73,6% 59,80% 25% of pro forma international 8,80% revenue 2019 pro forma EBITDA: €40.4m Di
Slide 21: Print revenue and Digital revenue pro forma
Print revenue: €317.3M (-9%) Outperforming the falling market: uncertainty on Mondadori’s end during transfer, and historical teams focused on acquisition in 2019 Digital revenue: €144.9M, i.e., growth of 2% o Historical Branding €20.7m: strong sales growth at +21% of turnover (market +12%) confirmi
Slide 22: Pro forma EBITDA stable at €40.4m
Pro forma EBITDA stable at €40.4m Print EBITDA: €32.2m (-5%) 1st Half held back by uncertainty on Mondadori’s end during transfer, and historical teams focused on acquisition Digital EBITDA: €8.2m, up by 16% o Acquisition €0.7m: excellent execution in 2nd Half with return to profitability (H2 EBITDA
Slide 23: Profitability sped up in 2nd Half
Profitability sped up in 2nd Half, driven by positive seasonal effect Revenue growth of 1% between H1 and H2 2019 o Stable in Print o 5% growth in Digital: +23% on historical Branding +15% on the acquired scope 75% increase in profitability in 2nd Half 2019 (+€11m) o Print EBITDA +60% in just one ha
Slide 24: Distribution of capital as at 1/03/20
Distribution of capital as at 1/03/20 ALREW - FR001082027 Number of shares: 51,816,696 Euronext Growth since 16 June 2014 Bloomberg: ALREW FP 17% Share price: 39% On 17/03/20: €1.96 27% Market capitalisation €101m 17% High - 12 months € 3.62 Low - 12 months € 1.50 Management Average volume – 12 mont
Slide 25: Next up: digitising newly integrated assets
• NEXT UP: DIGITISING THE NEWLY INTEGRATED ASSETS • CONTINUING DEVELOPMENT ON THE 42 MEDIA BRANDS AND EXPERTISE
Slide 26: First integration phases successful, finalisation in H1-2020
First integration phases successful – finalisation in H1-2020 Now investing in digitalisation and the development of new integrated brands Q4 – 2019 2020 Audience development Integration of structures Digital & non-media investments for new communities • Technological platform • All networks merged
Slide 27: Growing traffic, generating profitable monetisation
Average monthly hits Source: site centrics 90 • 77m average hits per month in 2019: 80 x4 27m on the historical scope +42% 70 50m on the acquired scope 60 New 50 brands • Significant expansion in digital inventory 40 available on the acquired scope: 30 +30% 25% more page views in Q4 2019 (180 M) 20
Slide 28: Strategic priorities
Strategic 1 2 3 4 priorities Digitalisation Synergies & Consolidation Profitability operational in Print developments Makeovers for sites Passing on editorial expertise First-mover advantage Developing and distribution / Digital digital audience channels Commercial complementarities Editorial qualit
Slide 29: Proven expertise in TV since May 2019
Proven expertise in TV since May 2019 with the launch of Sport en France, the channel featuring the top in French sport A linear channel published by Media365 on behalf of the French National Olympic Committee (CNOSF) Shown on: Orange: 174 Bouygues: 192 Free: 190 SFR/Numericable: 129 MolotovT 29
Slide 30: Positioned for removal of third-party cookies
In a strong position to take advantage of the announced removal of third- party cookies from browsers • The Hyper-Contextual: a substitute just as powerful as data - In January, the new offer was launched: in it, data cookies are replaced by contextual data - The advantage of a multi-thematic - mult
Slide 31: Contacts
CONTACTS REWORLD MEDIA 8 rue Barthélémy Danjou 92100 Boulogne Billancourt investisseurs@reworldmedia.com Sponsor listing Communication Contact: Ségolène de St Martin sdestmartin@p-c-e.fr 31