Slide 1: Full-year results
The leading European entertainment network I0|2 Full-year results Frankfurt/Main, 6 March 2014 GROUP
Slide 2: Agenda
Agenda 1 2 3 4 2014 5 Full-year Group Business Outlook 2014 Strategy 2013 highlights financials segments update 2
Slide 3: Impressive results in tough economic environment
1 2 3 4 5 Impressive results in tough economic environment € 5,889 million Revenue 106% Cash conversion rate YoY growth: 19.6% EBITA Margin YoY growth: +6.9% +45.7% € 1,152 million Reported EBITA continuing operations € 870 million Net profit 3
Slide 4: A year of significant value creation
1 2 3 4 5 A year of significant value creation Largest European media IPO* All profit indicators up High cash generation Increase of EBITA YoY Total dividends € stock price**: growth: for 2013: +69% +6.9% € 7.00 per share May Jul Sep Nov Dec 2013 2013 2013 2013 2013 More efficient capital structure,
Slide 5: Agenda
Agenda 1 2 3 4 2014 5 Full-year Group Business Outlook 2014 Strategy 2013 highlights financials segments update 5
Slide 6: Review of results December 2013: Revenue & EBITA
1 2 3 4 5 Review of results 31 December 2013 Revenue & EBITA Full-year to Full-year to Per cent In € million December 2013 December 2012 change Revenue 5,889 5,998 (1.8) Underlying revenue 5,914 5,998 (1.4) Operating cost base 4,830 4,992 (3.2) Reported EBITA 1,152 1,078 +6.9 Reported EBITA margin (
Slide 7: EBITA to net profit bridge
1 2 3 4 5 Review of results 31 December 2013 EBITA to net profit bridge Full-year to Full-year to Per cent In € million December 2013 December 2012 change Reported EBITA 1,152 1,078 +6.9 Reversal of/(loss on) impairment of investment in associates; amortisation and impairment of fair value adjustmen
Slide 8: Net interest
1 2 3 4 5 Review of results 31 December 2013 Net interest Full-year to Full-year to In € million December 2013 December 2012 Total net interest expense (22) (10) Of which: IAS 19 related interest expense (6) (10) Tax related net interest (expense) (2) (2) Other discount effects (7) (6) Net interest
Slide 9: Financial results
1 2 3 4 5 Review of results 31 December 2013 Financial results Full-year to Full-year to In € million December 2013 December 2012 Financial results other than interest 69 (1) Of which: Swap points – (8) Net gain on financial instruments at fair value through income statement 21 6 Net gain and impair
Slide 10: Cash Flow statement as of December 2013
1 2 3 4 5 Cash Flow statement as of 31 December 2013 Full-year to Full-year to In € million December 2013 December 2012 Net cash flow from operating activities 1,121 925 Add: Income tax paid 240 325 Less: Acquisition of assets, net (144) (166) Equals: Reported free cash flow (FCF) 1,217 1,084 Acquis
Slide 11: Ordinary dividend
1 2 3 4 5 Review of results 31 December 2013 Ordinary dividend Full-year to In € million December 2013 Profit for the year attributable to RTL Group shareholders 870 Adjustments for: Reversal of Atresmedia impairment (72) Non-cash gain on redevelopment of land, Luxembourg (19) Gain on sale of non-mo
Slide 12: Dividends for fiscal year 2013
1 2 3 4 5 Dividends for fiscal year 2013 Attractive dividend yield Extraordinary interim dividend € 2.50 Paid in September 2013 Proposed dividends reflect strong cash flow as well as future investment plans Ordinary dividend Ordinary dividend in line with € 2.50 Proposed, to be paid in May 2014 RTL
Slide 13: Agenda
Agenda 1 2 3 4 2014 5 Full-year Group Business Outlook 2014 Strategy 2013 highlights financials segments update 13
Slide 14: Mediengruppe RTL Deutschland: Strong audience lead over main competitor
1 2 3 4 5 Mediengruppe RTL Deutschland Strong audience lead over main competitor FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %) 14 – 59 (in %) -1.1 -0.6 -0.1 -0.2 -0.5 -0.1 32.6 13.9 32.4 31.5 31.3 9.5 30.6 8.8 8.5 8.0 30.1 7.4 RTL 26.9 27.4 26.9 26.0 25.2 25.2 RTL Sat 1 Pro 7 ZDF ARD Vox P7S1 +0.2 +/
Slide 15: EBITA exceeds €600 million for the first time
1 2 3 4 5 Mediengruppe RTL Deutschland EBITA exceeds €600 million for the first time NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) FY 2013 vs. FY 2012 (in %) REVENUE EBITA +1.1% 29.3% ROS 31.1% 1,982 2,003 + 2.2% +7.1% +1.0 to 2.0% 622 581 Market MG RTL 2012 2013 2012 2013 Deut
Slide 16: Groupe M6: Ongoing audience fragmentation, good start for 6ter
1 2 3 4 5 Groupe M6 Ongoing audience fragmentation, good start for 6ter FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) -0.8 -0.3 -1.0 -0.5 34.1 32.9 33.3 33.0 32.6 25.2 32.2 Groupe TF1 16.2 10.0 4.5 21.5 21.2 21.0 20.0 20.5 20.4 Groupe M6 TF1 France 2 Fran
Slide 17: Groupe M6: Outperforming a difficult market
1 2 3 4 5 Groupe M6 Outperforming a difficult market NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) FY 2013 vs. FY 2012 (in %) REVENUE EBITA -0.3% 16.1% ROS 15.0% Market M6 TF1 1,387 1,383 -0.6 -7.6% < -4.0 224 207 -5.0 2012 2013 2012 2013 M6 and TF1 as reported 17
Slide 18: RTL Nederland: Excellent audience performance
1 2 3 4 5 RTL Nederland Excellent audience performance FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %) 20 – 49, Primetime (in %) 35.2 +0.4 -3.8 -0.8 +0.3 +0.1 33.5 18.9 32.9 RTL 32.3 31.7 13.6 30.1 8.4 8.1 29.1 6.0 28.3 29.3 27.3 25.3 25.3 RTL 4 Ned 1 SBS 6 Ned 3 RTL 5 26.9 26.8 24.0 Pubcast
Slide 19: RTL Nederland: Strong revenue and EBITA growth
1 2 3 4 5 RTL Nederland Strong revenue and EBITA growth NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) FY 2013 vs. FY 2012 (in %) REVENUE EBITA +5.6% 22.5% ROS 22.6% Market RTL Nederland 455 +/-0 431 +6.2% 103 97 -3.0 2012 2013 2012 2013 Source: RTL Group estimates (spot and non
Slide 20: RTL Belgium: Clear market leader, solid EBITA
1 2 3 4 5 RTL Belgium Clear market leader, solid EBITA AUDIENCE SHARE KEY FINANCIALS Shoppers 18 – 54, Primetime (in %) (in € million) REVENUE EBITA -0.5% 21.4% ROS 22.0% +0.1 +0.2 +0.4 -1.8 210 209 36.4 +2.2% 23.6 45 46 18.8 5.0 RTL Pubcaster AB 3 French 2012 2013 2012 2013 Belgium Channels Source:
Slide 21: RTL Radio (France): Audience leadership maintained
1 2 3 4 5 RTL Radio (France) Audience leadership maintained, EBITA margin stable AUDIENCE SHARE BY GROUP KEY FINANCIALS 13+, 5 – 24H, MON – FRI (in %) (in € million) REVENUE EBITA 16.7% ROS 16.6% -2.8% +/-0p +0.6p -0.1p -0.6p 180 175 19.6 -3.3% 18.3 15.4 30 29 12.5 RTL NRJ Lagardère Pubcaster 2012 2
Slide 22: Hungary, Croatia and Spain: Improved operating results
1 2 3 4 5 Hungary, Croatia and Spain Improved operating results in declining markets RTL HUNGARY RTL CROATIA ATRESMEDIA* – SPAIN 101 100 741 830 REVENUE 31 33 (in € million) 2012 2013 2012 2013 2012 2013 ROS 8.9% 15.0% 5.3% 9.6% +66.7% +105% 80 EBITA (in € million) 15 39 9 2012 0 2012 2013 2013 2012
Slide 23: FremantleMedia: Stable EBITA despite lower revenue
1 2 3 4 5 FremantleMedia Stable EBITA despite lower revenue KEY FINANCIALS REVENUE BRIDGE 2012 – 2013 (in € million) (in € million) REVENUE EBITA 1,711 1,711 51 81 1,533 43 3 1,533 8.1% ROS 8.9% Negative European Branded Other FX production entertainment & licensing 138 136 2012 2013 2012 2013 2012
Slide 24: Agenda
Agenda 1 2 3 4 2014 5 Full-year Group Business Outlook 2014 Strategy 2013 highlights financials segments update 24
Slide 25: RTL Group Outlook for 2014
1 2 3 4 2014 5 RTL Group Outlook for 2014 RTL Group expects its total revenue and EBITA to be broadly stable, at constant 1 scope and exchange rates, providing the European debt recovery continues RTL Group’s operating cash conversion rate, historically close to 100 per cent, 2 is not expected to ch
Slide 26: Agenda
Agenda 1 2 3 4 2014 5 Full-year Group Business Outlook 2014 Strategy 2013 highlights financials segments update Broadcast Content Digital 26
Slide 27: RTL Group continues to lead in all of its three strategic pillars
1 2 3 4 5 RTL Group continues to lead in all of its three strategic pillars BROADCAST CONTENT DIGITAL #1 or #2 in 8 European countries #1 global TV entertainment content Leading European media company Leading broadcaster: producer in online video 55 TV channels and 27 radio stations 8,500
Slide 28: Enhancing broadcast portfolio
1 2 3 4 5 Enhancing broadcast portfolio BROADCAST Newly launched channels growing above expectations ✔ Strengthen family of channels Retransmission fees have become significant profit contributors in Germany, ✔ Grow France, Netherlands, Belgium and Hungary non-ad business #1 or #2 in 8 Europea
Slide 29: Programming: Continuous programme investments
1 2 3 4 5 Programming Continuous programme investments Established brands New formats I’m A Celebrity … Rising Star Get Me Out Of Here! Hit talent show from Israel 2013 2014 37% Audience share 40% L`amour est dans le pré Euro 2016 championship and #1 dating show in France 2018 World Cup qualifiers 3
Slide 30: Family of channels: Constant expansion to counter fragmentation
1 2 3 4 5 Family of channels Constant expansion to counter fragmentation Successful launches Launches in 2014 Germany PAY GER ✔ FR ✔ Launch planned for 8 May 2014 Premium documentary channel Croatia FTA NL ✔ HU ✔ Kids and family channel, since 11 January 2014 Up to 20% of viewers aged 4 to 1
Slide 31: Geographic Expansion: Joining forces in Asia
1 2 3 4 5 Geographic Expansion Joining forces in Asia RTL CBS Entertainment HD Partnership already in 4 markets Malaysia ✔ #1 in Europe #1 in the US Singapore ✔ Philippines ✔ Launched Launch planned for 27 March 2014 Family entertainment targeting Male-skewed entertainment Thailand ✔ basic pay-TV ar
Slide 32: Broadcast: Priorities for 2014 and beyond
1 2 3 4 5 Broadcast Priorities for 2014 and beyond 1 Invest in top content 2 Grow new channels 3 Expand footprint in high growth markets 4 Grow second revenue stream 32
Slide 33: RTL Group continues to lead in all of its three strategic pillars
1 2 3 4 5 RTL Group continues to lead in all of its three strategic pillars BROADCAST CONTENT DIGITAL #1 or #2 in 8 European countries #1 global TV entertainment content Leading European media company Leading broadcaster: producer in online video 55 TV channels and 27 radio stations 8,500
Slide 34: Create market-leading content
1 2 3 4 5 Create market-leading content CONTENT Resizing of resources concluded CONTENT Initiatives to drive format development in place ✔ Maintain leading position Acquisition strengthens drama production ✔ Rebalance portfolio #1 global TV entertainment content producer Growth of online r
Slide 35: FremantleMedia expanding in digital production and distribution
1 2 3 4 5 FremantleMedia expanding in digital production and distribution Digital content EMERGING Web originals MCN invest- Distribution ments YouTube channels Cable/Pay Partner- TV shows ships Co-development and production of food vertical TV Network YoY growth: Shows Digital +194% TRADITIONAL l
Slide 36: Content: Priorities for 2014 and beyond
1 2 3 4 5 Content Priorities for 2014 and beyond 1 Maintain core business 2 Diversify portfolio 3 Grow and develop the network 4 Build a scalable digital business 36
Slide 37: RTL Group continues to lead in all of its three strategic pillars
1 2 3 4 5 RTL Group continues to lead in all of its three strategic pillars BROADCAST CONTENT DIGITAL #1 or #2 in 8 European countries #1 global TV entertainment content Leading European media company Leading broadcaster: producer in online video 55 TV channels and 27 radio stations 8,500+
Slide 38: Driving digital transformation
1 2 3 4 5 Driving digital transformation DIGITAL DIGITAL Increase of total online revenues +26% YoY* € 236m Online revenues Online video advertising revenues +31% YoY in 2013 Grow online ad and non-ad business ✔ Europe’s #1 media company in online video Generating 2.2bn monthly video views**
Slide 39: Online video is at the heart of RTL Group's digital strategy
1 2 3 4 5 Online video is at the heart of RTL Group’s digital strategy Strategic focus Strong growth Top 10 global player* VIDEO VIEWS RTL GROUP # COMPANY Catch-up Full year (in billion) 1 Google / YouTube 1 VOD TV services 2 Facebook +143% 3 AOL (including Adap.TV) 4 VEVO 16.8 5 DAILYMOTION Web New
Slide 40: Premium VOD offers uniquely adapted to local markets
VOD 1 2 3 4 5 Premium VOD offers uniquely adapted to local markets Ad funded Pay 7 day ad-funded catch-up TV service with pay features Germany like pre-TV, series passes and archive Roll out to managed platforms and HBBTV Catch-up TV service under unified brand 6play France Extension of 6pla
Slide 41: Acquiring and building successful web original content
Web originals 1 2 3 4 5 Acquiring and building successful web original content Style Haul Golden Moustache #1 original video destination for A leading comedy network fashion, beauty and lifestyle in France RTL Group owns a 26.1% stake Distribution via YouTube and own website; “Best of” TV show on W9
Slide 42: With BroadbandTV, RTL Group has become a leading MCN player
MCN 1 2 3 4 5 With BroadbandTV, RTL Group has become a leading MCN player 15 THOUSAND+ 120 MILLION+ #3 MCN Channels Channel subscribers On YouTube worldwide VIDEO VIEWS OF BROADBANDTV In billion CAGR 1 +117% 2 11.0 3 4 1.3 0.5 2009 2011 2013 5 Full-year view, incl. non-monetized views Ranking by uni
Slide 43: Digital: Priorities for 2014 and beyond
1 2 3 4 5 Digital Priorities for 2014 and beyond 1 Grow online business 2 Expand non-linear services 3 Develop multi-channel network business 4 Strengthen online advertising sales capabilities 43
Slide 44: 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