Slide 1: Interim Results H1/2019
INTERIM RESULTS H1/2019 28 AUGUST 2019 28 AUGUST 2019 1
Slide 2: Agenda
AGENDA HALF-YEAR 2019 GROUP OPERATIONAL STRATEGY & HIGHLIGHTS FINANCIALS HIGHLIGHTS OUTLOOK 2019
Slide 3: New Leadership Structure
Highlights NEW LEADERSHIP STRUCTURE New Group Management Committee of RTL Group Thomas Rabe Elmar Heggen Björn Bauer Chief Executive Officer, RTL Group Deputy Chief Executive Officer and Chief Financial Officer, RTL Group Chief Operating Officer, RTL Group Jennifer Mullin Bernd Reichart Nicolas de T
Slide 4: RTL Group continues to deliver on its Total Video strategy
Highlights RTL GROUP CONTINUES TO DELIVER ON ITS TOTAL VIDEO STRATEGY… 1 Leading market positions, high profitability – key for current investment cycle in the media industry 2 Fast growth in VOD and content BROADCAST as subscriber growth continues and content strategy pays off 3 New alliances and p
Slide 5: Achieving its highest ever first-half revenue
Highlights …ACHIEVING ITS HIGHEST EVER FIRST-HALF REVENUE +4.2% Revenue: €3,173m BROADCAST -1.8% EBITA: €538m Margin: 17.0% -1.0pp Profit for +21.0% the period: €443m 5
Slide 6: Highly diversified – dynamic digital revenue growth
Highlights HIGHLY DIVERSIFIED – DYNAMIC DIGITAL REVENUE GROWTH RTL Group H1 2019 revenue split Digital revenue split TV advertising In € million 44.3% MPNs: €153m +9.3% +21.0% 513 MPNs VOD1: €122m +27.1% Content VOD 20.9% €3.2bn 424 Content: €104m +89.1% (Fremantle) Content Other 9.0% Digital Ad-tec
Slide 7: Organic growth drivers: update as of H1 2019
KPIs ORGANIC GROWTH DRIVERS: UPDATE AS OF H1 2019 BROADCAST CONTENT DIGITAL H1 2018/YOY MPNs Ad-tech Revenue: €2,225m -2% Revenue: €828m +23% €153m +9% €67m1 +40% Platform revenue: €179m +7% % of drama: 20% MPN & ad-tech revenue: €220m +17% SVOD subscribers: 1.2m +46% Digital revenue: €104m +89% TOT
Slide 8: Agenda
AGENDA HALF-YEAR 2019 GROUP OPERATIONAL STRATEGY & HIGHLIGHTS FINANCIALS HIGHLIGHTS OUTLOOK 2019
Slide 9: Record revenue, high margins
Review of results 30 June 2019 RECORD REVENUE, HIGH MARGINS Half year to Half year to Per cent In € million June 2019 June 2018 change Revenue 3,173 3,046 +4.2 Underlying revenue 3,124 2,988 +4.6 Operating cost base 2,684 2,542 +5.6 EBITA 538 548 (1.8) EBITA margin (%) 17.0 18.0 (1.0)pp Net debt (73
Slide 10: Portfolio management drives net profit increase
Review of results 30 June 2019 PORTFOLIO MANAGEMENT DRIVES NET PROFIT INCREASE Half year to Half year to Per cent In € million June 2019 June 2018 change Reported EBITA 538 548 (1.8) Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing 70 8 intere
Slide 11: Significantly higher cash conversion
Review of results 30 June 2019 SIGNIFICANTLY HIGHER CASH CONVERSION Half year to Half year to In € million June 2019 June 2018 Net cash flow from operating activities 354 226 Add: Income tax paid 255 280 Less: Acquisition of assets, net (96) (86) Equals: Reported free cash flow (FCF) 513 420 Acquisi
Slide 12: Agenda
AGENDA HALF-YEAR 2019 GROUP OPERATIONAL STRATEGY & HIGHLIGHTS FINANCIALS HIGHLIGHTS OUTLOOK 2019
Slide 13: Strong operational performance and high profitability
Mediengruppe RTL Deutschland STRONG OPERATIONAL PERFORMANCE AND HIGH PROFITABILITY Key financials¹ Family of channels In € million 14 to 59, H1 2019 Revenue HIGHLIGHTS EBITA 28.1%² Achieved a 36% increase in subscribers -1.4% YOY³, driven by strong 1,094 11.0% original programming 1,079 Others 23.4%
Slide 14: Good organic growth
Groupe M6 GOOD ORGANIC GROWTH Key financials Family of channels In € million Women < 50 responsible Revenue for purchases, H1 2019 HIGHLIGHTS EBITA 21.1% Received regulatory approval, tech platform -3.2% to be provided by M6 739 14.3% 715 Others +3.0% organic 33.1% 6.8% 1.5% Acquisition of Gulli fur
Slide 15: Challenging market conditions, growing digital business
RTL Nederland CHALLENGING MARKET CONDITIONS, GROWING DIGITAL BUSINESS Key financials Family of channels¹ In € million Adults 25–54, Prime time, Revenue H1 2019 HIGHLIGHTS EBITA 29.9% No. 1 platform for Dutch video content, -2.1% strong subscriber growth Others 18.4% 17.1% (+58% YOY²) 241 236 12.8% C
Slide 16: Significant double-digit organic growth
Fremantle SIGNIFICANT DOUBLE-DIGIT ORGANIC GROWTH Key financials In € million HIGHLIGHTS +23.2% Continued push into 128 828 scripted drama, renewals of key titles (American 28 Gods S3, My Brilliant 672 +57.6% 52 Friend S2) Organic growth FX Revenue Successful format EBITA +19% spin-off with America’
Slide 17: Agenda
AGENDA HALF-YEAR 2019 GROUP OPERATIONAL STRATEGY & HIGHLIGHTS FINANCIALS HIGHLIGHTS OUTLOOK 2019
Slide 18: New alliances: shaping the future of the European Total Video industry
Strategic priority – ALLIANCES NEW ALLIANCES: SHAPING THE FUTURE OF THE EUROPEAN TOTAL VIDEO INDUSTRY External alliances Internal alliances Examples / non-exhaustive Ad Alliance: Expanded portfolio with digital assets of Bertelsmann Content Alliance: Cross-divisional offers Axel Springer’s Media Imp
Slide 19: National streaming champions see fast growth and collaborate on tech
Strategic priority – VOD NATIONAL STREAMING CHAMPIONS SEE FAST GROWTH AND COLLABORATE ON TECH Achievements COMPETE COLLABORATE CREATE >1.2M PAYING SUBSCRIBERS INTEGRATED TECH PLATFORM 48 EXCLUSIVE TITLES for TV Now and Videoland for RTL Group streaming offers in across TV Now and Videoland +46% YOY
Slide 20: Create Europe's leading ad-tech development unit
Strategic priority – AD-TECH CREATE EUROPE’S LEADING AD-TECH DEVELOPMENT UNIT Strategic review of RTL Group’s ad-tech businesses EU operations (except the UK) to be led by Mediengruppe RTL Deutschland, bundled under Smartclip brand Create open ad-tech platform customised for European broadcasters an
Slide 21: Priorities going forward
RTL Group PRIORITIES GOING FORWARD FOCUS ON OPERATIONAL PERFORMANCE and strengthen families of channels across the Group GROW NATIONAL STREAMING CHAMPIONS with focus on technology and exclusive content ACCELERATE CONTENT CREATION / PRODUCTION across Fremantle and TV broadcasters DEEPLY INTEGRATE AD-
Slide 22: Outlook for 2019
RTL Group OUTLOOK FOR 2019 2019 Guidance Revenue outlook + REVENUE expected to In € million and % grow moderately, driven by digital businesses and Fremantle +2.5% +5.0% €6,668m €6,830m EBITA pre-restructuring costs EBITA outlook – In € million and % expected to decrease moderately, reflecting inves
Slide 23: Thank you!
THANK YOU!
Slide 24: 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