Reworld Media SA · EURONEXT:ALREW
Reworld Media SA — FY2020 Earnings Presentation
32 slides from Reworld Media SA's earnings presentation, Mar 17, 2021
Slide 1: 2020 Annual Results
4th-leading enterprise in French Tech 2020 ANNUAL RESULTS 17 March 2021 CONTENT ● BRANDS ● TECHNOLOGIES 1
Slide 2: Sommaire
SOMMAIRE GROUP PRESENTATION HIGHLIGHTS RESULTS PRESENTATION OUTLOOK C O N T E N TS ● B R A N D S ● T E C H N O L O G I E S 2
Slide 3: Group Presentation
GROUP PRESENTATION 17 mars 2021 CC OONNTTEENNTS TS●● B BRRA ANND DSS ●● TTEECCHHNNOOL O LOGG I EIS ES 3
Slide 4: A Unique and On-Target Model
A UNIQUE AND ON-TARGET MODEL BtoC BtoB MEETING CONSUMERS’ EXPECTATIONS RESPONDING TO THE KEY ISSUES AT STAKE IN by offering content, COMPANIES’ COMMUNICATION products and services by providing fit-for-purpose solutions in line with their interests Subscription and pay-per-use sales AdTech POWERFUL P
Slide 5: 2020: Strong Resilience and Solid Fundamentals
2020: STRONG RESILIENCE AND SOLID FUNDAMENTALS Business Revenue EBITDA €424.7 M 24% €41.4 M 951 Established in Consolidated 10% stable employees 11 consolidated revenue of revenue earned internationally EBITDA EBITDA margin at 31 December countries -8% vs. 2019PF +2% vs. 2019PF Share Cash flow Net d
Slide 6: A Central Player
A CENTRAL PLAYER BtoC BtoB THE LEADER IN THEMATIC MEDIA IN FRANCE A MAJOR EUROPEAN PLAYER IN ADTECH 48 media brands 2 billion advertising spaces sold / month 2.3 million paying subscribers 25 million unique visitors / month*** Average spending of €4.28 / customer 10 million contacts reached / day €9
Slide 7: Successful Profitable Development
SUCCESSFUL PROFITABLE DEVELOPMENT IN 5 YEARS, THE GROUP HAS MULTIPLIED ITS SALES BY 2.4 AND ITS EBITDA BY 9.4 In millions of euros 450 Mondadori 424.7 60.0 France 400 acquired 50.0 350 Tradedoubler 41.4 Assets integrated 294.4 40.0 300 Assets acquired from acquired from Lagardère 30.0 250 Axel Sprin
Slide 8: Highlights
HIGHLIGHTS 17 March 2021 C COONNTTEENNTT ●● BB RR AA N NDD SS ●● TTEECCHHNNOOL LOOGGI EI ES S 8
Slide 9: Strong Brands & Captive Audience Pools
STRONG BRANDS & CAPTIVE AUDIENCE POOLS BtoC BtoB 31.6 MILLION PRINT & DIGITAL READERS IN 6 THEMATIC SEGMENTS 6 OUT OF 10 FRENCH PEOPLE OVER AGE 15 CONSUME OUR BRANDS 8.6 MILLION 7.5 MILLION 8.4 MILLION 17.7 MILLION 6.8 MILLION 4.3 MILLION WOMEN’S HEALTH ENTERTAINMENT HOME SCIENCE AUTO SPORT WELL- GA
Slide 10: Innovation in Thematic Content
INNOVATION IN THEMATIC CONTENT BtoC BtoB Μ #4 NEW MAGAZINES IN 2020 More than 850,000 text content #10 SVOD THEMATIC CHANNELS With over 1,000 hours of programs €1.2 billion market, +43% #250 PODCAST PROGRAMS 10 million listeners per month Strong market trend: 1 in 5 French people, +50% #2 PAYWALL SI
Slide 11: Beyond Content, Products & Services
BEYOND CONTENT, PRODUCTS & SERVICES BtoC BtoB TRAVEL TRAINING Over 10,000 readers have already 2 Bachelor’s programs launched in 2020 travelled with us 38 students trained Cruises and themed trips A market worth €8 billion for for-profit A market worth €21 billion, including training organisations 4
Slide 12: A Buoyant & Adtech-Friendly Communication Market
A BUOYANT & ADTECH-FRIENDLY COMMUNICATION MARKET BtoC BtoB STRUCTURAL & SUSTAINED GROWTH SHARP INCREASE IN DIGITAL IN VALUE AND REWORLD MEDIA COVERS 38% OF THE GLOBAL MARKET SHARE MARKET REWORLD MEDIA COVERS 78% OF THE DIGITAL MARKET In billions of euros +1.4% In billions of euros +2.3% +0.5% +2.0%
Slide 13: Proprietary Audiences Booming
PROPRIETARY AUDIENCES BOOMING BtoC BtoB 4TH RANKING THEMATIC DIGITAL GROUP 3RD RANKING THEMATIC MEDIA GROUP In millions of unique hits monthly in 2020 In millions of print and digital readers per month in 2020 38.0 41.7 36.2 40.4 30.2 31.6 25.0 29.2 20.6 27.9 17.8 +25% STRONGEST GROWTH VS. 23.6 GROW
Slide 14: Developing New Market Segments
DEVELOPING NEW MARKET SEGMENTS BtoC BtoB LAUNCH OF DIGITAL EVENTS Backed by our proprietary brands PURCHASE OF HOPSCOTCH STAKE Reworld holds 27.75% of capital* LAUNCH OF SOCIAL PLAYGROUND Production & monetisation platform on the social media CREATION OF MEDIA PROXIMITÉ Digital solutions for SMEs in
Slide 15: Developing New Adtech Solutions
DEVELOPING NEW ADTECH SOLUTIONS BtoC BtoB DEVELOPMENT OF LEADSLAB International network for collecting qualified leads Launch in Germany and Spain in 2021 LAUNCH OF “GROW” BY TRADEDOUBLER Smart self-service affiliation platform with features usually reserved for major brands LAUNCH OF EDISOUND A pla
Slide 16: Results Presentation
RESULTS PRESENTATION 17 March 2021 C COONNTTEENNTT ●● BB RR A ANN DD SS ●● TTEECCHHNNOOL LOOGGI EI ES S 16
Slide 17: Proforma Income Statement by Business Line
PROFORMA INCOME STATEMENT BY BUSINESS LINE EXCELLENT RESILIENCE: EBITDA MARGIN MAINTAINED AT 10% €m 2020 2019 PF* Var. BtoC Revenue 252.9 277.8 -9% BtoB Revenue 171.8 184.4 -7% Revenue 424.7 462.2 -8% BtoC EBITDA 22.2 11.1 2.0x Margin (%) 9% 4% BtoB EBITDA 19.2 29.3 -34% Margin (%) 11% 16% EBITDA 41
Slide 18: BtoC Results
BtoC RESULTS BtoC BtoB PRO FORMA BTOC EBITDA DOUBLED In millions of euros 2020 BtoC revenue of €252.9m, down 9% vs. 2019 277.8 277,8 - Good resilience in subscriptions 252.9 252,9 46% of BtoC 2020 sales / -4% vs. 2019 - “Exceptional” decrease in pay-per-use sales : due to -9% COVID-19 crisis and r
Slide 19: BtoB Results
BtoB RESULTS BtoC BtoB PRO FORMA SALES UP IN H2 2020 In millions of euros 2020 BtoB sales of €171.8 million, down 7% vs. 2019 184.4 184,4 171,8 171.8 - Impact of the COVID-19 crisis -7% - Return to growth in the 2nd half of the year at +1% 92.4 78.5 92,4 92.0 92,0 93.3 92.0 93,3 - Outperformance in
Slide 20: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 2020 EBIT = 1.5X 2019 EBIT 44% growth in revenue €m 2020 2019 Var. 40% growth in EBITDA Revenue 424.7 294.4 +44% EBIT multiplied by a factor of 1.5 EBITDA 41.4 29.6 +40% Depreciation and amortisation (4.0) (4.1) -3% Financial result of €-6.8m EBIT 37.4 25.5 1.5x - €4.2m
Slide 21: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET €m 2020 2019 A solid financial position Fixed asset 222.9 219.1 €104.1m in Gross cash Deferred tax assets 8.7 4.4 +€50.1m vs. 2019 Working capital (69.9) (63.6) Net debt down sharply to €24.3m: Cash and cash equivalents 104.1 54.0 - A reduction of €17.7m vs. 2019 Assets 26
Slide 22: Cash Flow
CASH FLOW €m 2020 2019 The Group generated €50.1 million in EBITDA 41.4 29.6 cash Tax 1.7 €55.9 million in operating flows Cash impact 12.8 (7.1) Operating flows 55.9 22.5 €27.8 million in activity flows impacted Exceptional items (28.0) (23.7) by the restructuring of press distribution Operational
Slide 23: Shareholding
SHAREHOLDING At 28 February 2021 Key figures: Total number of shares: 54.4 million Treasury stock: 9.7% Total number of exercisable voting rights*: 66.3 million Floating: 49.2% Management: 20.4% Highlights: Exit of Arnoldo Mondadori Editore 17.3% of the capital at 31 Dec. 19 Management strengthened
Slide 24: Share Price
SHARE PRICE At 15 March 2021 3.20 3.5 160.0 Key figures: 3.0 140.0 Market capitalisation: €193.0 M 2.60 Number of shares: 54.4 million 2.5 2.43 120.0 High (L12M): €3.69 Low (L12M): €1.73 2.00 100.0 2.0 1.53 Codes: 80.0 1.5 141.3 ISIN: FR0010820274 1.09 1.03 60.0 Bloomberg: ALREW FP 1.00 Reuters: ALR
Slide 25: Outlook
OUTLOOK 17 March 2021 C COONNTTEENNTT ●● BB RR AA N NDD SS ●● TTEECCHHNNOOL LOOGGI EI ES S 25
Slide 26: Our Ambitions
OUR AMBITIONS BtoC BtoB BECOME A MAJOR PLAYER IN COVER 100% SUBSCRIPTION CONTENT & SERVICES OF THE ADTECH MARKET Supporting content consumption methods: Innovating and developing new offerings by SVOD, podcasts, paywall capitalising on our technological and digital expertise Consolidating and expand
Slide 27: Sustainable & Profitable Growth
SUSTAINABLE & PROFITABLE GROWTH Positive market trends Selling subscription content & services Adtech Strong capacity for product, technological and commercial innovation As a major driver of organic growth Solid business and financial fundamentals Renewed capacity for selective external growth ASPI
Slide 28: A Responsible and Engaged Group
A RESPONSIBLE AND ENGAGED GROUP The “T.O.P. Mission” 2021 OUR PUBLICATIONS “Transmettre – Optimiser – Promouvoir” Passing on – optimising – promoting Project #1 2021 IMPACT REPORT Inclusion through employment with Reworld Μ Released on 18 March 2021 Media Campus Project #2 REWORLD MEDIA 2020 CARBON
Slide 29: Questions
QUESTIONS 17 March 2021 C COONNTTEENNTT ●● BB RR AA N NDD SS ●● TTEECCHHNNOOL LOOGGI EI ES S 29
Slide 30: Introductory Statement
INTRODUCTORY STATEMENT The information contained in this document, particularly that concerning performance objectives of Reworld Media Group, are subject to certain risks and uncertainties. Any references to past performance of Reworld Media Group should not be taken as indicators of future perform
Slide 31: Contacts
CONTACTS 8 rue Barthélémy Danjou 92100 Boulogne Billancourt reworldmedia.com investisseurs@reworldmedia.com Follow us also on: Sponsor listing: Euroland Corporate Contact: Julia Bridger jbridger@elcorp.com Communication: Contact: PCE - Ségolène de St Martin sdestmartin@p-c-e.fr C COONNTTEENNTT ●● BB
Slide 32: 4th-leading enterprise in French Tech
4th-leading enterprise in French Tech 32