Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — Television Franchise — Q1 2024 Earnings Presentation
41 slides from Television Francaise 1 Sa's earnings presentation, May 17, 2024
Slide 1: Investor Presentation Post Q1 2024 Results
INVESTOR PRESENTATION POST Q1 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, without limitation: financial projections, forecasts and estimates and their underl
Slide 3: Agenda
1 WHO WE ARE STRATEGY UPDATE P.4 P.8 2 Q1 2024 FINANCIALS SEGMENT DEEP DIVE P.15 P.21 3 EXTRA-FINANCIAL PERFORMANCE SHARE INFORMATION P.29 P.31 4 APPENDIX P.33 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 Acquisition of the aufeminin group free streaming platform in France 2020 1991 Eurosport
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: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS ADVERTISING REVENUE GROWTH SUCCESSFUL LAUNCH OF GROWTH IN LINEAR REINFORCED IN LINEAR AND STREAMING ADVERTISING AUDIENCE LEADERSHIP Group advertising revenue Digital advertising revenue Linear advertising revenue W<50PDM 25-49 Y/O +6.6% +43.5% +4.4% 34.5% 31.4% +1.3 pts +1.5 pts v
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 (Newen Studios)
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: Q1 2024 Financials
3 Q1 2024 FINANCIALS INVESTOR PRESENTATION 15
Slide 16: Consolidated Revenue
CONSOLIDATED REVENUE (€m) Q1 2024 Q1 2023 CHG.% MEDIA MEDIA 453.1 419.1 +8.1% Solid growth in linear and digital advertising revenue (+6.6%) ADVERTISING REVENUE 363.3 340.7 +6.6% Strong advertising revenue growth for TF1+ (+43.5%), reflecting the attractiveness of the O/W TF1+ ADVERTISING REVENUE 29
Slide 17: Current Operating Profit from Activities per Segment
CURRENT OPERATING PROFIT FROM ACTIVITIES PER SEGMENT (€m) Q1 2024 Q1 2023 CHG.% MEDIA Programming costs (up €17m) sustaining MEDIA 36.6 41.4 (11.6%) advertising growth and TF1+ MARGIN 8.1% 9.9% (1.8 pts) Specific costs related to TF1+ launch NEWEN STUDIOS NEWEN STUDIOS 0.7 (1.6) ns Positive COPA in
Slide 18: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (€m) Q1 2024 Q1 2023 CHG.% CONSOLIDATED REVENUE 511.9 479.7 +6.7% TOTAL COSTS OF PROGRAMMES (217.2) (200.6) +8.3% OTHER CHARGES. DEPRECIATION, AMORTISATION AND PROVISIONS (257.4) (239.3) +7.6% CURRENT OPERATING PROFIT FROM ACTIVITIES 37.3 39.9 (6.4%) CURRENT OPERATING M
Slide 19: Solid Net Cash Position at End-March 2024
SOLID NET CASH POSITION AT END-MARCH 2024 Free cash flow before changes in WCR €28.0 million 91.9 (2.3) 32.8 2.1 563.6 (4.4) 505.1 (61.6) €m Free cash flow after changes in WCR €60.8 million Opening net cash Operating Lease Net capital Change in Acquisitions Dividends, Closing net cash position at c
Slide 20: 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 20
Slide 21: Segment Deep Dive
4 SEGMENT DEEP DIVE INVESTOR PRESENTATION 21
Slide 22: Media
MEDIA SEGMENT DEEP DIVE
Slide 23: Reinforced Leadership on Commercial Targets in Q1 2024
REINFORCED LEADERSHIP ON COMMERCIAL TARGETS IN Q1 2024 GAP WIDENED WITH MAIN COMPETITOR UNRIVALLED DAILY REACH +10.6 pts vs main competitor, 23.5 WIDEST GAP IN 14 YEARS 78% W<50PDM 12.9 55% 8.2 4.5 4.4 3.4 2.7 2.6 2.5 2.3 2.0 0.4 0.4 31% TF1 M6 F2 TMC W9 TFX TF1SF F3 6ter Gulli F5 LCI F.info 19% +0.
Slide 24: Solid Line-up in Q1, Performing Well in Linear and Streaming
SOLID LINE-UP IN Q1, PERFORMING WELL BOTH IN LINEAR AND STREAMING INCREASED PERFORMANCE ACROSS TARGET AUDIENCES ON RECORD STREAMING AUDIENCES ALL DAILY AUDIENCE TOUCHPOINTS Up to 1.3m streamers added for Koh-Lanta, best BVOD audience ever for an entertainment show 29/30 Highest ratings among W<50PDM
Slide 25: Successful Launch of TF1+
SUCCESSFUL LAUNCH OF STREAMERS ADVERTISING REVENUE €29m STREAMED HOURS +44% 33m / month 35m in March 285m +23% (Médiamétrie ) 1 New record +13% (Médiamétrie ) 1 +79% (Site Centric, TF1+ only2) AWARENESS ACCESSIBILITY VISIBILITY LINE-UP AND UX Marketing campaigns Referencing on almost all On track wi
Slide 26: Newen Studios
NEWEN STUDIOS SEGMENT DEEP DIVE
Slide 27: 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 28: Q1 Highlights
Q1 HIGHLIGHTS STRONG ASSETS TO BUILD THE FUTURE Revenue of €58.8m in Q1 2024, close to Q1 2023 Historical COPA in positive territory records for daily soaps at €0.7m DRAMA CINEMA New talents joining the Studios Distribution successes Delivery for Delivery for End of Season 2 shooting Theatrical rele
Slide 29: Extra-Financial Performance
EXTRA- 5 FINANCIAL PERFORMANCE INVESTOR PRESENTATION 29
Slide 30: 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 31: Share Information
6 SHARE INFORMATION INVESTOR PRESENTATION 31
Slide 32: Share Ownership & Stock Market Information
SHARE OWNERSHIP & STOCK MARKET INFORMATION OWNERSHIP STRUCTURE* COVERAGE & RECOMMENDATIONS STOCK MARKET INFORMATION Quote: Euronext Paris 14% 8 ANALYSTS Market: Compartment A ISIN: FR0000054900 CFI: ESVUFN ICB: 403010 Media 45% 63% BUY Ticker: TFI 37% NEUTRAL Major Market Indexes: 30% • • SBF 120 CA
Slide 33: Appendix
7 APPENDIX INVESTOR PRESENTATION 33
Slide 34: 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 35: 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 36: 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 37: 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 38: Optimisation Plan
OPTIMISATION PLAN TARGETS SAVINGS €40m+ RATIONALE GRADUALLY REACH €40m+ WITHIN 2025 30% Achieved OPERATIONAL COSTS SAVINGS at end Savings to originate mostly from December real estate, IT, procurement and GENERATE organization SAVINGS AND REALLOCATE RESOURCES REINVESTMENT TO BOOST OUR DIGITAL OF €10
Slide 39: Growing Dividend Policy
GROWING DIVIDEND POLICY 2018-2023 EVOLUTION €0.552 (€/SHARE) CAGR +7% 8% DIVIDEND YIELD3 € 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 Subject to approval by the Annual General Meeting of 17 April 2024 3 Ba
Slide 40: Slide 40
Slide 41: Contact
INVESTORPRESENTATION POST Q1 2024 RESULTS CONTACT PIERRE-ALAIN GÉRARD – EVP FINANCE, STRATEGY & PROCUREMENT 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 Du Jour comfi@tf1.fr