Slide 1: Frankfurt am Main, 5 March 2015
Frankfurt am Main, 5 March 2015
Slide 2: Agenda
Agenda 1 2 3 4 2015 5 Full-year Group Business Outlook Strategy 2014 highlights financials segments 2015 update 2
Slide 3: Highlights: Another set of impressive results in 2014
1 2 3 4 5 Highlights Another set of impressive results in 2014 € 5,808 million 95% Revenue Cash conversion rate 19.7% EBITA Margin € 1,145 million € 653 million Reported EBITA Net profit 3
Slide 4: A year of significant investments
1 2 3 4 5 Highlights A year of significant investments Leading fashion and Beauty MCN #1 European MCN Key investments Leading marketplace for online video advertising in 2014 BROADCAST US-based reality TV producer for cable channels Successful launch of new TV channels CONTENT French home shopping T
Slide 5: Agenda
Agenda 1 2 3 4 2015 5 Full-year Group Business Outlook Strategy 2014 highlights financials segments 2015 update 5
Slide 6: Review of results December 2014: Revenue & EBITA
1 2 3 4 5 Review of results 31 December 2014 Revenue & EBITA Full-year to Full-year to Per cent In € million December 2014 December 20131) change Revenue 5,808 5,824 (0.3) Underlying revenue 5,668 5,738 (1.2) Operating cost base 4,787 4,785 - Reported EBITA 1,145 1,148 (0.3) Reported EBITA margin (%
Slide 7: EBITA to net profit bridge
1 2 3 4 5 Review of results 31 December 2014 EBITA to net profit bridge Full-year to Full-year to Per cent In € million December 2014 December 20131) change Reported EBITA 1,145 1,148 (0.3) Reversal of/(loss on) impairment of investment in associates; amortisation and impairment of fair value adjust
Slide 8: Cash Flow statement as of December 2014
1 2 3 4 5 Cash Flow statement as of 31 December 2014 Full-year to Full-year to In € million December 2014 December 20131) Net cash flow from operating activities 934 1,116 Add: Income tax paid 328 237 Less: Acquisition of assets, net (177) (138) Equals: Reported free cash flow (FCF) 1,085 1,215 Acqu
Slide 9: Ordinary dividend
1 2 3 4 5 Review of results 31 December 2014 Ordinary dividend Full-year to In € million December 2014 Profit for the year attributable to RTL Group shareholders 653 Adjustments for: Goodwill impairment 88 Loss on disposal RadicalMedia 18 Non-cash gain on redevelopment of land, Luxembourg (32) Non-c
Slide 10: Dividends for fiscal year 2014
1 2 3 4 5 Dividends for fiscal year 2014 High dividend payout maintained despite investments € 2.00 Extraordinary interim dividend Paid in September 2014 Proposed dividends reflect strong cash flow while leaving ability to further invest Ordinary dividend Ordinary dividend in line with RTL Group’s €
Slide 11: Summary
1 2 3 4 5 Summary RTL Group achieved three major financial goals in parallel 1 Operating profitability at record level 2 Significant investments, particularly in digital 3 Attractive dividend payments 11
Slide 12: Agenda
Agenda 1 2 3 4 2015 5 Full-year Group Business Outlook Strategy 2014 highlights financials segments 2015 update 12
Slide 13: Mediengruppe RTL Deutschland: Delivering record results
1 2 3 4 5 Mediengruppe RTL Deutschland Delivering record results AUDIENCE SHARE Leading family of channels New generation channels successful 29.0% 25.9% MG RTL P7S1 #1 Broadcaster Strong revenue and EBITA growth of +5% in Germany Record EBITA margin of 31.8% € 650m EBITA Record financial re
Slide 14: Mediengruppe RTL Deutschland: Clear market leadership maintained
1 2 3 4 5 Mediengruppe RTL Deutschland Clear market leadership maintained FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %), in 2014 14 – 59 (in %) -1.2 +0.1 +0.4 +0.7 -0.3 -0.7 Others MG RTL 12.7 20.3% 9.6 8.9 8.7 8.5 10% line 29.0% 6.7 ARD-III 7.2% RTL Sat 1 ZDF ARD Pro 7 Vox ARD 8.7% -0.4 -0.2 -0.1 +0
Slide 15: Particularly strong leadership in prime time
1 2 3 4 5 Mediengruppe RTL Deutschland Particularly strong leadership in prime time FAMILY OF CHANNELS 14 – 59 (in %), in 2014 ACCESS PRIME TIME PRIME TIME (17 – 20h) 14 – 59 (in %) (20 – 23h) 14 – 59 (in %) Others MG RTL +4.3 pp +4.3 pp 20.3% 29.0% 13.1 13.5 ARD-III 7.2% 9.2 8.8 ARD 8.7% 8.9% 25.9%
Slide 16: Taking the majority of TV ad breaks with highest reach
1 2 3 4 5 Mediengruppe RTL Deutschland Taking the majority of TV ad breaks with highest reach FAMILY OF CHANNELS 14 – 59 (in %), in 2014 RTL OFFERS UNIQUE REACH RTL TELEVISION SHARE OF ADVERTISING BREAKS Others MG RTL WITH HIGHEST REACH IN 2014 20.3% 29.0% >2 million reach ARD-III 7.2% ARD 8.7% Rest
Slide 17: Impressive track record in EBITA growth
1 2 3 4 5 Mediengruppe RTL Deutschland Impressive track record in EBITA growth NET TV ADVERTISING KEY FINANCIALS MARKET GROWTH1) (in € million) (in %) 2,047 +4.7% 1,982 1,955 1,912 Revenue +3.5 – 4.0% 2014 650 +5.0% 619 2013 581 EBITA 529 2011 2012 2013 2014 27.7% 29.3% 31.7% 31.8% ROS 1) RTL Group
Slide 18: Groupe M6: Delivering a strong performance
1 2 3 4 5 Groupe M6 Delivering a strong performance EBITA slightly up despite weak ad market Strong contribution from diversification Improved EBITA margin € 209m EBITA Solid Stable family audience share EBITA +63% growth of 6ter’s audience share Stable audience performance Box office hi
Slide 19: Solid audience performance – stronger in second half
1 2 3 4 5 Groupe M6 Solid audience performance – stronger in second half FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) 34.1 -0.2 -0.3 +0.1 -0.3 33.3 33.0 32.6 32.7 32.2 Groupe 25.0 TF1 15.9 10.1 4.2 21.5 21.2 21.0 20.8 20.5 20.4 Groupe TF1 M6 France 2 Fra
Slide 20: Improved EBITA and margin in weak ad market
1 2 3 4 5 Groupe M6 Improved EBITA and margin in weak ad market NET TV ADVERTISING KEY FINANCIALS MARKET GROWTH1) (in € million) (in %) REVENUE EBITA -5.7% 15.1% ROS 16.1% 1,374 1,295 +0.3% +1.0% 2014 2013 207 209 2013 2014 2013 2014 1) RTL Group estimate of TV advertising market growth 20
Slide 21: RTL Nederland: Leadership in TV, digital and diversification
1 2 3 4 5 RTL Nederland Leadership in TV, digital and diversification AUDIENCE SHARE Undisputed #1 family of channel 32.4% Wide gap to nearest 19.9% commercial competitor RTL NL SBS #1 Broadcaster Revenue growth driven by diversification in Netherlands activities & platform revenue EBITA sta
Slide 22: Excellent audience performance in sports year
1 2 3 4 5 RTL Nederland Excellent audience performance in sports year FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %), in 2014 20 – 49, Primetime (in %) RTL Nederland -0.2 +3.9 +0.5 -0.2 -2.4 Others 18.7 17.5 21.1% 8.9 32.4% 6.0 5.7 RTL 4 Ned 1 SBS 6 Veronica Ned 3 -0.3 -0.7 -0.5 -0.4 +/-0 2
Slide 23: Good revenue and EBITA performance in weak market
1 2 3 4 5 RTL Nederland Good revenue and EBITA performance in weak market NET TV ADVERTISING KEY FINANCIALS MARKET GROWTH1) (in € million) (in %) REVENUE EBITA +2.0% 23.0% ROS 22.5% 457 2014 +2% 448 +/-0.0% 2013 103 103 2013 2014 2013 2014 1) RTL Group estimate of TV advertising market growth 23
Slide 24: Other markets: Rebound in Spain, stable EBITA from RTL Belgium
1 2 3 4 5 Other markets Rebound in Spain, stable EBITA from RTL Belgium BELGIUM 199 HUNGARY 102 Clear market leader Profitability in 2014 Stable EBITA in weak heavily impacted by 46 punitive ad tax -1 ad market FRENCH RADIO 166 CROATIA 35 #1 Radio in France Maintained Weak revenue and br
Slide 25: FremantleMedia: A year of transition
1 2 3 4 5 FremantleMedia A year of transition EBITA impacted by cancellation of X-Factor US and fewer episodes of American Idol Initiatives to drive development, € 113m EBITA locally and globally Challenging Higher content investments in 2014 market place Building prime time scripted busines
Slide 26: FremantleMedia: In line with expectations
1 2 3 4 5 FremantleMedia In line with expectations KEY FINANCIALS REVENUE BRIDGE 2013 – 2014 (in € million) (in € million) REVENUE EBITA 1,525 1,525 -197 1,486 +147 1,486 8.9% ROS 7.6% +97 -91 New Shows not +5 shows renewed Volume Other Increased decreases volume on returning and new shows acquisiti
Slide 27: Maintaining the core with renewed focus on growth
1 2 3 4 5 FremantleMedia Maintaining the core with renewed focus on growth Core franchises deliver above channel average Goals for future growth X-Factor (UK) Simon Cowell returned as judge Re-balance portfolio +13pp Above channel average The Farmer Wants a Wife (Sweden) Highest rated show of the da
Slide 28: Accomplishments and future growth drivers
1 2 3 4 5 FremantleMedia Accomplishments and future growth drivers Re-balance portfolio Build new IP Deepen digital exploitation Acquired US Deutschland 83 European #1 cable production 1st German mini-series MCN acquired company sold to the US Invested The Returned New channels in UK drama producer
Slide 29: Major steps in digital with growth story
1 2 3 4 5 Digital business Major steps in digital with growth story Generating 5.3bn monthly video views1) Acquired StyleHaul, #1 fashion & beauty MCN YouTube channels globally #1 media company Total online revenues of €295m in Europe for online video +22% growth of broadcaster in-stream adv
Slide 30: Online video is at the heart of RTL Group's digital strategy
1 2 3 4 5 Online video Online video is at the heart of RTL Group’s digital strategy VIDEO VIEWS RTL GROUP Full year (in billion) 1) Top 10 global player 1) 2) 50 # COMPANY 1 Google/YouTube 2 Facebook 3 AOL #4 4 RTL Group 36 5 Vevo Consolidated 6 Maker Studios 17 7 Yahoo 8 Fullscreen 7 9 Hulu 2012 20
Slide 31: Strong advertising growth – driven by video
1 2 3 4 5 Digital business Strong advertising growth – driven by video ONLINE REVENUES REVENUE GROWTH Full year (in € million)1) 2014 YoY2) Ad Non-Ad Broadcaster MCN Advertising +26% in-stream business marketplace 295 233 +22% +110% +76% 2013 2014 1) Consolidated view; 2) Considering full-year reven
Slide 32: Agenda
Agenda 1 2 3 4 2015 5 Full-year Group Business Outlook Strategy 2014 highlights financials segments 2015 update 32
Slide 33: RTL Group Outlook for 2015
1 2 3 4 2015 5 RTL Group Outlook for 2015 Total revenue and EBITA (excluding one-offs) expected to be broadly stable, 1 as outlook for European ad market growth remains mixed Audience shares for 2015 to grow slightly compared to 2014, due to 2 higher program investments and fewer sport events on pub
Slide 34: Agenda
Agenda 1 2 3 4 2015 5 Full-year Group Business Outlook Strategy 2014 highlights financials segments 2015 update Best in TV Best in online video Best in monetisation 34
Slide 35: Strategic focus for 2015: A leader across broadcast, content and digital
1 2 3 4 5 Strategic focus for 2015 A leader across broadcast, content and digital BEST IN BEST IN BEST IN TV ONLINE VIDEO MONETISATION Develop Grow Capture Must-See TV, globally in all digital growth counter fragmentation video segments and new business 35
Slide 36: We always invest in the core of our business - programming
1 2 3 4 5 Strategic focus for 2015 We always invest in the core of our business - programming Our Approach Optimise Counter families, create BEST IN fragmentation new digital offers TV Develop Create new hits must-see content 36
Slide 37: Linear TV is still the dominant form of video consumption
1 2 3 4 5 Best in TV Linear TV is still the dominant form of video consumption Stable TV consumption in core markets Portfolio meeting fragmenting usage TV CONSUMPTION SHARE OF In minutes per day1) NON-LINEAR New linear VIEWING2) TV channels 223 Germany 221 9% 221 Linear France 212 OTT channels 200
Slide 38: Strong content is key – building hits as a team
1 2 3 4 5 Best in TV Strong content is key – building hits as a team Established hits still performing way above channel average Investing heavily in new hits AUDIENCE SHARE In %1) New dramas New shows 24.3 21.2 12.7 33.7 35.9 Deutschland 83 12.7 New collaboration New in-house production 34.1 34.6 1
Slide 39: Online video is at the heart of our digital strategy
1 2 3 4 5 Strategic focus for 2015 Online video is at the heart of our digital strategy Our Approach Multiplatform Expanding catch-up TV & BEST IN non-linear offers short-form offers ONLINE VIDEO Innovate & Create digital aggregate content across the Group in web original content 39
Slide 40: Catch-up TV: Flagship platforms with strong growth across all devices
1 2 3 4 5 Catch-up TV Flagship platforms with strong growth across all devices GERMANY FRANCE NETHERLANDS 3 new +25% +69% “Now” mobile apps YoY growth OTT subscribers in launched in 2014 of long-form views Dec vs. Nov 20141) 1) Of Videoland 40
Slide 41: MCN strategy: Strong presence across the whole value chain
1 2 3 4 5 MCN strategy Strong presence across the whole value chain Horizontal MCN Vertical MCN Production Brands/Talent #3 GLOBAL MCN #1 STYLE NETWORK US/UK #1 FRENCH STYLE MUSIC COMEDY CHANNEL CHANNEL #1 EUROPEAN MCN EUROPE DUTCH MCN IN COOPERATION WITH BBTV A truly global network More depth in ve
Slide 42: StyleHaul: Vertical depth in attractive fashion and beauty segment
1 2 3 4 5 StyleHaul Vertical depth in attractive fashion and beauty segment #1 fashion and beauty MCN Making RTL Group on YouTube the #2 player on YouTube2) Key influencers Views per month 1 1bn YoY growth +112% 2 Subscribers 229m+ 3 Top original content Channels 4 5,500+ YoY growth +207% 5 Absolute
Slide 43: Grow and diversify our revenue streams
1 2 3 4 5 Strategic focus for 2015 Grow and diversify our revenue streams OUR APPROACH Improve Prepare for TV & online sales converging ad BEST IN sales capabilities MONETISATION Grow Increase Pay & diversification transactional & platform business revenues 43
Slide 44: Advertising sales: Capture TV growth opportunities
1 2 3 4 5 Advertising sales Capture TV growth opportunities Market share of TV increased Further growth potential +3pp Profit from Germany Between shift in media mix 2010 – 20141) (TV and digital) +1pp Building France Between converged 2010 – 20141) measurement +6pp Build Netherlands Between global
Slide 45: SpotXchange adds technological capabilities to RTL Group
1 2 3 4 5 Advertising sales SpotXchange adds technological capabilities to RTL Group Leading video exchange expanding in Europe Ad decisions 3bn processed per day 209m Unique viewers New platform reached globally1) +240 partners Signed in 2014 BeNeLux Germany Northern Ireland Joint venture Office op
Slide 46: Platform revenue: Large growth potential for RTL Group
1 2 3 4 5 Platform revenue Large growth potential for RTL Group NETWORK PLATFORM REVENUE RTL GROUP PLATFORM REVENUE as % of total revenue, 2014 In € million 22% +16% HD CAGR channels 220 Thematic channels 5% 90 VOD 1) US Broadcast RTL Group on managed platforms YoY +37% Growth +19% 2008 2014 1) Reve
Slide 47: A global leader across broadcast, content and digital
1 2 3 4 5 Strategic focus for 2015 A global leader across broadcast, content and digital IT’S ABOUT IT’S ABOUT IT’S ABOUT IT’S ABOUT CREATIVITY SALES DISTRIBUTION VIDEO Attracting top talent Multiscreen sales Platform revenues “Must-see content” Collaboration Balancing ad & pay VOD, MC
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Slide 49: Q&A
Slide 50: 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