Slide 1: Entertain. Inform. Engage.
ENTERTAIN. INFORM. ENGAGE.
Slide 2: Agenda
Agenda 1 2 3 4 2018 Full-year Group Business & Strategy Outlook 2017 highlights financials update 2018 2
Slide 3: Total Video strategy continues to pay off
Highlights Total Video strategy continues to pay off… BROADCAST Strong results in Germany and France CONTENT TOTAL FremantleMedia with higher profits VIDEO and growing drama slate DIGITAL Dynamic digital growth, revenue up by 23% 3
Slide 4: ...with another set of record results
Highlights …with another set of record results Revenue € 6,373 million +2.2% EBITDA € 1,464 million +3.8% EBITDA margin 23.0% +0.4pp Proposed dividend of € 3.00 5.9% yield1 Notes: Revenue and EBITDA percentages refer to year-on-year growth on 2016. 1. Yield is based on average 2017 share price and i
Slide 5: Digital: dynamic growth
Highlights Digital: dynamic growth DIGITAL REVENUE TOTAL In € million YOY VIDEO +23% 3.5x 826 +23.2% 670 508 +33.2% 295 233 +22.4%1 2013 2014 2015 2016 2017 On track to achieve digital 4.0% % of total RTL Group revenue 13.0% revenue goal of 15% by 2020 Source: Internal figures. 1. Divimove: revenue
Slide 6: Platform: growing and highly profitable revenue stream
Highlights Platform: growing and highly profitable revenue stream PLATFORM REVENUE1 In € million YOY Non-advertising HD Advertising +14% channels 1.7x 319 Thematic 281 channels 248 225 185 New deals signed in 2017 & 2018 2013 2014 2015 2016 2017 3.2% % of total RTL Group revenue 5.0% Further growth
Slide 7: Well-diversified revenue mix
Highlights Well-diversified revenue mix RTL GROUP 2017 REVENUE SPLIT In % Other1 10.4 Digital 13.0 47.5 TV advertising TV advertising Other revenue Content € 6.4 bn 49.0% 69.7% 20.1 Platform 5.0 4.0 Radio advertising 1. Other includes home shopping, merchandising, e-commerce, technical services, etc
Slide 8: RTL Group accelerating global Total Video offer
Consistent strategy RTL Group accelerating global Total Video offer LEADING TV ON-DEMAND IN EU #1 GLOBAL MPN >10m 35bn UUs/ views/ month month1 LEADING CONTENT PRODUCER #1 PAN-EU SALES NETWORK TOTAL >12.5k VIDEO >100 EU hours channels on air A LEADING VIDEO AD-STACK #1 ADDRESSABLE TV IN GERMANY $500
Slide 9: Reinvigorating the RTL pioneering spirit
Strategy 2018 and beyond Reinvigorating the RTL pioneering spirit MORE CROSS MEDIA INNOVATION Creating cross-media Virtual and augmented MPN Nordic powerhouse reality investment expansion MORE TOTAL EXCLUSIVE VIDEO CONTENT Local content, Live football Multiple drama series local hits in production M
Slide 10: Agenda
Agenda 1 2 3 4 2018 Full-year Group Business & Strategy Outlook 2017 highlights financials update 2018 10
Slide 11: Revenue and EBITDA once again at a record level
Highlights Revenue and EBITDA once again at a record level REVENUE EBITDA REVENUE In € million In € million Growth driven by MGRTL, 6,373 +2.2% 1,464 +3.8% Groupe M6 and digital activities EBITDA 6,000 EBITDA growth driven by MGRTL, FremantleMedia and one-off1 5,824 1,328 FCF TO EBITA Cash conversio
Slide 12: All key financial metrics up
Review of results 31 December 2017 All key financial metrics up Full-year to Full-year to Per cent In € million December 2017 December 2016 change Revenue 6,373 6,237 +2.2 Underlying revenue 6,338 6,225 +1.8 Operating cost base 5,342 5,209 +2.6 EBITA 1,248 1,205 +3.6 EBITA margin (%) 19.6 19.3 +0.3p
Slide 13: Higher net profit
Review of results 31 December 2017 Higher net profit Full-year to Full-year to Per cent In € million December 2017 December 2016 change Reported EBITDA 1,464 1,411 +3.8 Depreciation, amortisation and impairment (233) (221) Re-measurement of earn-out arrangements and gain / (loss) from sale of subsid
Slide 14: Significantly higher cash conversion
Review of results 31 December 2017 Significantly higher cash conversion Full-year to Full-year to In € million December 2017 December 2016 Net cash flow from operating activities 1,023 1,106 Add: Income tax paid 345 267 Less: Acquisition of assets, net (69) (210) Equals: Reported free cash flow (FCF
Slide 15: Attractive dividend yield
Review of results 31 December 2017 Attractive dividend yield Full-year to In € million December 2017 Profit for the year attributable to RTL Group shareholders 739 Adjustments for: Capital Gain (62) Re-measurement (14) Restructuring 16 Adjusted net result 679 Ordinary dividend, in € per share 3.00 O
Slide 16: Agenda
Agenda 1 2 3 4 2018 Full-year Group Business & Strategy Outlook 2017 highlights financials update 2018 16
Slide 17: #1 TV Family in Germany
Slide 18: Mediengruppe RTL Deutschland: Another outperformance despite weak ad market
Mediengruppe RTL Deutschland Another outperformance despite weak ad market KEY FINANCIALS In € million REVENUE 2,319 +4.7% RTL Television continues as clear #1 1,955 Der Lehrer EBITDA Another strong year 743 +3.5% driven by local hits, again surpassing Pro71 Die Höhle der Löwen CAGR +4.0% 32% EBITDA
Slide 19: Lead over P7S1 further increased – highest since 2013
Mediengruppe RTL Deutschland Lead over P7S1 further increased – highest since 2013 FAMILY OF CHANNELS LONG-TERM DEVELOPMENT 14 to 59, FY 2017 MG RTL 28.5% +0.1pp All day, adults 14-59 years in % 30.6 Others 11.3% 11.9% 22.4% 29.0 23.9% 6.8% 28.4 28.4 28.5 Market 10.4% 1.7 ARD-III 9.7% 6.9% leader 7.
Slide 20: Local content creates strong unique selling point
Mediengruppe RTL Deutschland Local content creates strong unique selling point Local hits catalogue more valuable than ever... …especially for building non-linear offers 19th season 14th season 26th season 10th season 8th season 11th season 13th season 23rd season 11th season 2nd season Online-first
Slide 21: #2 TV Family in France
Slide 22: French business outperformed net TV ad market
Groupe M6 French business outperformed net TV ad market FAMILY OF CHANNELS Women <50 responsible GROUPE M6 22.3% +0.1pp KEY FINANCIALS1 for purchases, FY 2017 In € million REVENUE EBITDA 15.7% EBITDA adjusted for 2016 one-off Others 1,446 1,503 33.6% 6.6% Higher audience share 400 389 France 3 358 3
Slide 23: Creating a cross-media powerhouse
Groupe M6 Creating a cross-media powerhouse Unified TV + radio… …with leading on-demand TV… …leveraging unique content Market-leading State-of-the-art Multi-year French sales portfolio customisation features football deal1 + 20m registered users +40% 1. Deal includes half the French national team's
Slide 24: In Netherlands
IN NETHERLANDS
Slide 25: RTL Nederland: Resilient audience shares; digital helps offset difficult ad market
RTL Nederland Resilient audience shares; digital activities help offset difficult ad market FAMILY OF CHANNELS -5.1% 20 to 49, Prime time, RTL Nederland 31.1% KEY FINANCIALS TV ad market FY 2017 In € million REVENUE EBITDA Others 25.5% 17.8% 495 Clear 475 market 13.3% leader 96 87 24.0% 19.4% Pubcas
Slide 26: Continued investments to diversify revenue
RTL Nederland Continued investments to diversify revenue FAMILY OF CHANNELS 20 to 49, Prime time, RTL Nederland 31.1% DIGITAL VIDEO FY 2017 Strong paid subscriber growth Others 25.5% 17.8% +78% INVESTMENTS Clear market 13.3% Investment into cross-platform sales leader 24.0% CONTENT 19.4% 19.7%1 Focu
Slide 27: Creative Group
, CREATIVE GROUP
Slide 28: Push into drama complements exceptional entertainment line-up
FremantleMedia Push into drama complements exceptional entertainment line-up TOP ENTERTAINMENT SHOWS HIGH END DRAMA SERIES NEW IN 2018 American Idol is back – Charité: Most popular on ABC 11th of March German FTA drama launch Picnic at Hanging Rock 13th season 2nd season My Brilliant Friend Avg. 15t
Slide 29: EBITDA growth despite negative FX effects and no American Idol
FremantleMedia EBITDA growth despite negative FX effects and no American Idol KEY FINANCIALS In € million REVENUE EBITDA 1,500 (29) (4) 5 1,472 FX Acquisitions Net Growth 140 129 2016 2017 2016 2017 12,500+ hours of content aired in 2017 (+5% on 2016) 29
Slide 30: Digital powerhouse
SPOTX @ smartclip| clypd POWERHOUSE yy
Slide 31: Expanding our position in Total Video
Digital transformation Expanding our position in Total Video 1 2 3 Strengthen Expand multi- Grow ad-tech, long-form VOD platform capabilities leverage data TOTAL VIDEO 31
Slide 32: Digital Video – Long-form
Digital Video – Long-form 1 Enhancing our local TV on-demand offers... Local +80% +40% +78% paid sub. registered paid sub. growth user growth growth Hybrid “Freemium” approach Exclusive content (illustrative) Pre-TV and archive 7+ day TV Hybrid BASIC TV on-demand Low ad load PREMIUM business ON-DEMA
Slide 33: Digital Video – Long-form
Digital Video – Long-form 1 ...accelerated by more group-wide cooperation Local +80% +40% +78% paid sub. registered paid sub. growth user growth growth 1 Grow local content investments with digital first originals Key priority across the 2 Develop hybrid business model with strong consumer appeal Gr
Slide 34: Digital Video – Short-form
Digital Video – Short-form 2 Our multi-platform networks: global #1 on YouTube #1 #1 in North #1 in Europe in Nordics America Unmatched global reach & Europe’s leading Acquired unique direct sales consistent growth branded content network team for branded content #1 MPN globally #1 MPN in EU #1 MPN
Slide 35: One team, one platform: driving monetisation across screens
Advertising technology 3 One team, one platform: driving monetisation across screens Building global ad-tech group... + ...with joint pan-EU sales... + ...and unique data expertise + Building strategic data alliances: Germany: Login Alliance 545 Full-time employees Offices around the 25 world France
Slide 36: Agenda
Agenda 1 2 3 4 2018 Full-year Group Business & Strategy Outlook 2017 highlights financials update 2018 36
Slide 37: Outlook for 2018
RTL Group Outlook for 2018 2018 Guidance – Growth Rates REVENUE OUTLOOK Revenue expected to grow In % and € million 1 moderately, predominantly driven by FremantleMedia and digital +2.5% Low 6,532 +5.0% High 6,692 EBITDA OUTLOOK In % and € million 1,464 EBITDA 2018 EBITDA expected to be 1,370 2 broa
Slide 38: Thank you!