Rtl Group S.a. · LUXSE:RTLL
Rtl — HSBC Frankfurt (April 2015)
26 slides from Rtl's conference presentation, Apr 21, 2015
Slide 1: RTL Group
RTL Group HSBC, Frankfurt 21 April 2015
Slide 2: Agenda
Agenda 1 2 3 2015 4 Full-year Business Outlook Strategy 2014 highlights segments 2015 update 2
Slide 3: Highlights: Another set of impressive results in 2014
1 2 3 4 Highlights Another set of impressive results in 2014 € 5,808 million 95% Revenue Cash conversion rate 19.7% EBITA Margin € 1,145 million € 653 million Reported EBITA Net profit 3
Slide 4: Highlights: A year of significant investments
1 2 3 4 Highlights A year of significant investments Leading fashion and Beauty MCN #1 European MCN Key investments Leading marketplace for online video advertising in 2014 BROADCAST US-based reality TV producer for cable channels Successful launch of new TV channels CONTENT French home shopping TV
Slide 5: Dividends for fiscal year 2014
1 2 3 4 Dividends for fiscal year 2014 High dividend payout maintained despite investments € 2.00 Extraordinary interim dividend Paid in September 2014 Proposed dividends reflect strong cash flow while leaving ability to further invest Ordinary dividend Ordinary dividend in line with RTL Group’s € 2
Slide 6: Agenda
Agenda 1 3 2 3 2015 4 Full-year Business Outlook Strategy 2014 highlights segments 2015 update 6
Slide 7: Mediengruppe RTL Deutschland: Delivering record results
1 2 3 4 Mediengruppe RTL Deutschland Delivering record results AUDIENCE SHARE Leading family of channels New generation channels successful 29.0% 25.9% MG RTL P7S1 #1 Broadcaster Strong revenue and EBITA growth of +5% in Germany Record EBITA margin of 31.8% € 650m EBITA Record financial resu
Slide 8: Mediengruppe RTL Deutschland: Clear market leadership maintained
1 2 3 4 Mediengruppe RTL Deutschland Clear market leadership maintained FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %), in Q1 2015 14 – 59 (in %) -1.5 +/-0 -0.4 -0.6 -0.2 -0.1 Others MG RTL 12,7 21,5% 9,6 8,4 7,8 8,3 10% line 29,0% 6,6 ARD-III 7,3% RTL Sat 1 ZDF ARD Pro 7 Vox ARD -0.1 -0.4 -0.2 +0.4 +
Slide 9: Mediengruppe RTL Deutschland: Strong in main ad revenue generation slots
1 2 3 4 Mediengruppe RTL Deutschland Strong in main ad revenue generation slots FAMILY OF CHANNELS 14 – 59 (in %), in Q1 2015 ACCESS PRIME TIME PRIME TIME (17 – 20h) 14 – 59 (in %) (20 – 23h) 14 – 59 (in %) Others MG RTL +3.7 pp +5.1 pp 21,5% 29,0% 14,0 ARD-III 12,6 7,3% 8,9 8,9 ARD 7,8% 8,4% 26,0%
Slide 10: Groupe M6: Delivering a strong performance
1 2 3 4 Groupe M6 Delivering a strong performance EBITA slightly up despite weak ad market Strong contribution from diversification Improved EBITA margin € 209m EBITA Solid Stable family audience share (20.6% in Q1 EBITA 2015) +63% growth of 6ter’s audience share (+55% growth in Q1 2015) S
Slide 11: RTL Nederland: Leadership in TV, digital and diversification
1 2 3 4 RTL Nederland Leadership in TV, digital and diversification AUDIENCE SHARE Q1 2015 Undisputed #1 family of channel 32.8% Wide gap to nearest 19.2% commercial competitor RTL NL SBS #1 Broadcaster Revenue growth driven by diversification in Netherlands activities & platform revenue EBI
Slide 12: FremantleMedia: A year of transition
1 2 3 4 FremantleMedia A year of transition EBITA impacted by cancellation of X-Factor US and fewer episodes of American Idol Initiatives to drive development, € 113m EBITA locally and globally Challenging Higher content investments in 2014 market place Building prime time scripted business
Slide 13: FremantleMedia: Accomplishments and future growth drivers
1 2 3 4 FremantleMedia Accomplishments and future growth drivers Re-balance portfolio Build new IP Deepen digital exploitation Acquired US Deutschland 83 European #1 cable production 1st German mini-series MCN acquired company sold to the US Invested The Returned New channels in UK drama producer to
Slide 14: Digital business: Major steps in digital with growth story
1 2 3 4 Digital business Major steps in digital with growth story Generating 5.3bn monthly video views1) Acquired StyleHaul, #1 fashion & beauty MCN YouTube channels globally #1 media company Total online revenues of €295m in Europe for online video +22% growth of broadcaster in-stream adver
Slide 15: Online video is at the heart of RTL Group's digital strategy
1 2 3 4 Online video Online video is at the heart of RTL Group’s digital strategy VIDEO VIEWS RTL GROUP Full year (in billion) 1) Top 10 global player 1) 2) 50 # COMPANY 1 Google/YouTube 2 Facebook 3 AOL #4 4 RTL Group 36 5 Vevo Consolidated 6 Maker Studios 17 7 Yahoo 8 Fullscreen 7 9 Hulu 2012 2013
Slide 16: Strong advertising growth – driven by video
1 2 3 4 Digital business Strong advertising growth – driven by video ONLINE REVENUES REVENUE GROWTH Full year (in € million)1) 2014 YoY2) Ad Non-Ad Broadcaster MCN Advertising +26% in-stream business marketplace 295 233 +22% +110% +76% 2013 2014 1) Consolidated view; 2) Considering full-year revenue
Slide 17: Agenda
Agenda 1 3 2 4 3 2015 4 Full-year Business Outlook Strategy 2014 highlights segments 2015 update 17
Slide 18: RTL Group Outlook for 2015
1 2 3 2015 4 RTL Group Outlook for 2015 Total revenue and EBITA (excluding one-offs) expected to be broadly stable, 1 as outlook for European ad market growth remains mixed Audience shares for 2015 to grow slightly compared to 2014, due to 2 higher program investments and fewer sport events on publi
Slide 19: Agenda
Agenda 1 2 3 2015 5 4 Full-year Business Outlook Strategy 2014 highlights segments 2015 update Best in TV Best in online video Best in monetisation 19
Slide 20: Strategic focus for 2015
1 2 3 4 Strategic focus for 2015 A leader across broadcast, content and digital BEST IN BEST IN BEST IN TV ONLINE VIDEO MONETISATION Develop Grow Capture Must-See TV, globally in all digital growth counter fragmentation video segments and new business 20
Slide 21: Best in TV: Linear TV is still the dominant form of video consumption
1 2 3 4 Best in TV Linear TV is still the dominant form of video consumption Stable TV consumption in core markets Portfolio meeting fragmenting usage TV CONSUMPTION SHARE OF In minutes per day1) NON-LINEAR New linear VIEWING2) TV channels 223 Germany 221 9% 221 Linear France 212 OTT channels 200 10
Slide 22: MCN strategy: Strong presence across the whole value chain
1 2 3 4 MCN strategy Strong presence across the whole value chain Horizontal MCN Vertical MCN Production Brands/Talent #3 GLOBAL MCN #1 STYLE NETWORK US/UK #1 FRENCH STYLE MUSIC COMEDY CHANNEL CHANNEL #1 EUROPEAN MCN EUROPE DUTCH MCN IN COOPERATION WITH BBTV A truly global network More depth in vert
Slide 23: Advertising sales: SpotXchange adds technological capabilities
1 2 3 4 Advertising sales SpotXchange adds technological capabilities to RTL Group Leading video exchange expanding in Europe Ad decisions 3bn processed per day 209m Unique viewers New platform reached globally1) +240 partners Signed in 2014 BeNeLux Germany Northern Ireland Joint venture Office open
Slide 24: Platform revenue: Large growth potential for RTL Group
1 2 3 4 Platform revenue Large growth potential for RTL Group NETWORK PLATFORM REVENUE RTL GROUP PLATFORM REVENUE as % of total revenue, 2014 In € million 22% +16% HD CAGR channels 220 Thematic channels 5% 90 VOD 1) US Broadcast RTL Group on managed platforms YoY +37% Growth +19% 2008 2014 1) Revenu
Slide 25: Strategic focus for 2015: A global leader across broadcast, content and digital
1 2 3 4 Strategic focus for 2015 A global leader across broadcast, content and digital IT’S ABOUT IT’S ABOUT IT’S ABOUT IT’S ABOUT CREATIVITY SALES DISTRIBUTION VIDEO Attracting top talent Multiscreen sales Platform revenues “Must-see content” Collaboration Balancing ad & pay VOD, MCNs
Slide 26: 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