Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — Investor Presentation (May 2018)
46 slides from Metropole Television Sa's investor presentation, May 2018
Slide 1: Presentation Investors May 2018
PRESENTATION INVESTORS MAY 2018
Slide 2: Disclaimer
disclaimer statements contained in this document, particularly the content of this document must not be those concerning forecasts on future m6 group considered as an offer document or as a performance, are forward-looking statements that solicitation to buy or sell m6 group shares. are potentially
Slide 3: M6 Group presentation
m6 group presentation 1. profile 2. activities 3. key figures 4. outlook 5. appendices 3
Slide 4: M6 Group at a glance
workforce: CREATION IN 2,611 2 nd 1987 AROUND THE CHANNEL Permanent contracts French sales house 25.2% advertising market share of at 31 december 2017 fta channels in 2017 3 fta 22.3% audience share on channels 2017 revenue 2017 ebita commercial target of fta 3 €1,387m €248.7m channels in 2017 radio
Slide 5: Profile
profile 5
Slide 6: Relevance of group strategic model
profile 1.relevance of group strategic model CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES CONTENT BROADCASTING RADIO DIVERSIFICATION 6
Slide 7: Key dates
profile 2.key dates 7
Slide 8: Breakdown of 2017 revenue and EBITA
profile 3.breakdown of 2017 revenue and ebita revenue ebita t el ev is io n t el evis io n € 897.2 m € 189.2 m 65% 76% r a d io r a d io € 12.8 M € 54.9 m 4% 5% d iv er s if ic a t io n d iv er s if ic a t io n € 333.3 m € 44.4 m 24% 18% Pr o d u c t io n Pr o d u c t io n & & a u d io v is u a l a
Slide 9: Corporate governance
profile 4.corporate governance ELMAR HEGGEN NICOLAS DE TAVERNOST CHAIRMAN OF THE CHAIRMAN OF THE EXECUTIVE SUPERVISORY BOARD BOARD CFO OF RTL GROUP SUPERVISORY BOARD THOMAS CHRISTOPHER JEROME DAVID 7 MEMBERS REPRESENTING RTL GROUP VALENTIN BALDELLI LEFEBURE LARRAMENDY 5 INDEPENDENT MEMBERS VICE-CHAI
Slide 10: Activities
activities 10
Slide 11: Strategic model
activities strategic model A STRATEGIC MODEL OF DEVELOPMENT LEANING ON THE COMPLEMENTARITY AND THE TRANSVERSALITY OF ITS ACTIVITIES ON ALL THE VALUE CHAIN CONTENT ACQUISITION AND PRODUCTION DIGITAL CONTENT ACTIVITIES BROADCASTING DIVERSIFICATION … 11
Slide 12: Television: objectives
activities 1.television 1 family of channels OBJECTIVES logic maximizing Power effect of the sales 1 advertising house revenues Thanks to the optimal use optimizing 2 programming of stock rights and in- house production cost subsidiaries 12
Slide 13: Television – a family of complementary channels targeting women under 50
activities television – a family of complementary channels targeting women under 50 fta channels pay-tv channels MAPPING OF AUDIENCE PROFILE BY AGE AND GENDER (January – May 2017) Size buble : audience share 15-49 year-old THE REFERENCE CHANNEL FOR THE MAJOR GENERALISTIC UPPER SOCIO-PROFESSIONALS CH
Slide 14: 2017: stability of viewing time
activities - television - audience ratings 2017: stability of viewing time 4+ 3:42 3:47 3:50 3:46 3:41 3:44 3:43 3:21 3:24 3:26 3:24 3:27 3:24 3:25 3:32 3:08 3:13 3:17 3:20 3:00 2:58 3:00 3:05 3h 3h10 3h20 3h25 3h45 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 15: 2017: M6 Group up on WRP-50
activities - television - audience ratings 2017: m6 group up on wrp-50 2016 2017 audience ratings of free-to-air channels -0.5pp +0.3pp -0.3pp 28,6 -0.9pp 4+ audience 28,1 27,4 27,7 14,1 13,8 share (%) 7,2 6,3 +0.2pp +0.1pp -0.7pp 32,1 32,3 22,3 17,3 16,6 -1.1pp wrp-50 audience 22,2 share (%) 7,6 6,
Slide 16: On the commercial target, M6 has never been so close to TF1
activities - television - audience ratings 2017 : on the commercial target, m6 has never been so close to tf1 change in m6 / tf1 channel audience share ratio among wrp-50 71% 71% 67% 64% 64% 64% 66% 58% 59% 57% 54% 54% 54% 52% 53% 55% 52% 51% 50% 47% 48% 46% 40% 38% 36% 34% 25% 27% 22% 1989 1990 199
Slide 17: M6 channel prime-time stability over the last 4 years
activities - television - audience ratings 2017 : the m6 channel has achieved PRIME-TIME stability over the last 4 years AT a good level on the commercial target 4+ AUDIENCE SHARE / WRP<50 (%) / AUDIENCE IN MILLIONS OF VIEWERS – 9.10PM-11.00PM TIMESLOT EXCLUDING EURO 2016 WEEKS – CONSOLIDATED AUDIEN
Slide 18: W9 and 6ter among the leading DTT channels
activities - television – dtt audience ratings 2016 2017 - w9 and 6ter among the leading dtt channels on the 2017 commercial target 3,4 3,3 3,2 3,0 2,7 2,6 2,3 2,5 2,1 1,9 2,0 1,8 1,8 1,9 1,9 1,8 1,7 1,7 1,6 1,6 1,6 1,4 1,2 1,2 1,1 1,1 1,2 4+ audience share 0,9 1,1 0,8 0,9 0,6 0,8 0,6 0,6 (%) 0,3 4,
Slide 19: 2018 YTD: private channels down
ACTIVITIES - TELEVISION - AUDIENCE RATINGS 2018 YTD : PRIVATE CHANNELS ARE DOWN, WITHIN A CONTEXT OF GROWTH FOR PUBLICLY-FUNDED CHANNELS, NOTABLY SUPPORTED BY THE BROADCAST OF THE WINTER OLYMPICS audience ratings of free-to-air channels 2017 ytd -0.9PT +1.3PT 2018 ytd -0.3PT -0.4PT 27,9 27,0 26,9 28
Slide 20: M6 Group advertising revenue reached an all-time high
activities - television - advertising market +4.6% m6 group advertising revenue reached an all-time high 829.5 FREE-TO-AIR 792.9 CHANNELS M6 GROUP NET +11.1% 2016 2017 ADVERTISING REVENUE (€ MILLIONS) +5.1% excl. radio RADIO 948.0 50.9 2016 2017 853.3 +12.0% OTHER OPERATIONS 67.7 60.4 internet 2016
Slide 21: Advertising market share increase of 0.8 point
ACTIVITIES - TELEVISION - ADVERTISING MARKET M6 GROUP FREE-TO-AIR CHANNELS SAW THEIR ADVERTISING MARKET SHARE INCREASE BY 0.8 PERCENTAGE POINT IN 2017, REACHING AN ALL-TIME HIGH CHANGE IN NET TV ADVERTISING MARKET SHARE OF M6 GROUP'S FREE-TO-AIR 2009/2016 CHANNELS SINCE 2009 (%) 2017 +3.2 pp 24.4% 2
Slide 22: Content acquisition and production: objectives
activities 2 2.content acquisition and production OBJECTIVES safeguarding content supply 1 for our tv channels diversifying 2 revenues 22
Slide 23: Success of movies distributed by SND
2. PRODUCTION & AUDIOVISUAL RIGHTS CINEMA SUCCESS OF MOVIES A LINE-UP THAT REMAINS ATTRACTIVE AND IS GROWING INTERNATIONALLY DISTRIBUTED BY SND SND, 2ND RANKED EXPORTER OF FRENCH FILMS IN 2017 REVENUE (€ M) 13 MOVIES RELEASED VS 15 IN 2016 8 FILMS FINANCED 10.7 M 8.5 M 2016 ADMISSIONS IN FRANCE ADMI
Slide 24: Digital activities: objectives
activities 3.digital activities 3 OBJECTIVES reinforcing the tv access and 1 audience/content Accompanying new use and innovate for advertisers consumption on the internet 2 identifying future talents 24
Slide 25: Digital: M6 Web and catch-up
3. DIGITAL CATCH UP M6 WEB: DYNAMIC ONLINE VIDEO ADVERTISING THE GROUP IS CONTINUING THE DEVELOPMENT OF ITS DIGITAL PLATFORM REVENUE AND INTEGRATION OF IGRAAL REVENUE (€ M) 1.3 BN VIDEOS VIEWED IN 2017 1h14 THE LEADING PLATFORM +12.8% FOR DAILY VIEWING TIME 2016 2017 109.3 96.9 EBITA (€ M) 7.9 PORTA
Slide 26: 21.2M registered users on 6play OTT
3. DIGITAL 21.2M REGISTERED USERS ON 6PLAY OTT WITH 21.2M ACCOUNTS CREATED, 6PLAY ENJOYS A GENUINE ADVANTAGE IN THE ADVERTISING MARKET IN TERMS OF DATA 25000000 21.2M 20000000 15000000 10000000 5000000 0 oct-15 nov-15 déc-15 janv-16 févr-16 mars- avr-16 mai-16 juin-16 juil-16 août-16sept-16 oct-16 n
Slide 27: Diversification: objectives
activities 4.diversification 4 OBJECTIVES use air-time and available - air-time : home-shopping, call-TV, … 1 advertising slots to generate new revenue - advertising time: m6 interaction, monAlbumPhoto.fr,… m6 group, one of the most diversified tv 2 groups in Europe … diversifying revenues (28% of r
Slide 28: Ventadis: decline in business volume in a challenging market
4. DIVERSIFICATION VENTADIS: DECLINE IN BUSINESS VOLUME IN A CHALLENGING MARKET RESTRUCTURING IN MORE SEASONAL EXPANSION PROGRESS ACTIVITY IN A HIGHLY OF THE RANGE COMPETITIVE MARKET DIGITAL TRANSFORMATION REVENUE GROWTH REVENUE (€ M) LAUNCHED 2016 2017 -8.7% 158.7 145.0 ARTISHOT EBITA (€ M) PROTO-C
Slide 29: F.C.G.B: reduction in losses
4. DIVERSIFICATION F.C.G.B: REDUCTION IN LOSSES 2016 2017 REVENUE (€ M) EBITA (€ M) +8.5% 57.9 62.8 -4.9 -8.9 ENCOURAGING ON-FIELD PERFORMANCES 2015/2016 11th GROUP STAGE 2016/2017 6th FAILED TO QUALIFY 2017/2018 7th PRELIMINARY ROUND 29
Slide 30: RTL radio division
activities 4. rtl radio division ACQUISITION OF A LEADER WITHIN A SOLID AND STABLE MARKET A NEW CONTRIBUTION TO EBITA CREATION OF A MULTIMEDIA SALES HOUSE POTENTIAL FOR SYNERGIES Text Support functions OPTIMISATION OF M6’S BALANCE SHEET STRUCTURE LEADING TO STRONG VALUE CREATION FOR SHAREHOLDERS 30
Slide 31: RTL radio, the leading French private radio group
RADIO RTL RADIO, THE LEADING FRENCH PRIVATE RADIO GROUP RTL’S RADIO DIVISION CONFIRMED ITS POSITION AS THE LEADING PRIVATE RADIO GROUP IN FRANCE FOR THE PERIOD JANUARY-MARCH 2018, WITH AN AUDIENCE SHARE OF 19.8% AMONGST LISTENERS AGED 13 AND ABOVE (UP 1 PP YEAR-ON-YEAR. CHANGE IN CUMULATED AUDIENCE
Slide 32: A stable yet fragmented market in which RTL is leader
radio a stable yet fragmented market in which rtl is leader Cumulative audience and listening time Net advertising market (€ millions) Source Mediamétrie 126 Radio – The Radio Audience in France survey Source : IREP Group audience share Group gross advertising market share Autres Source: Mediamétrie
Slide 33: Industrial project: integration of radio and multimedia sales house
radio the industrial project: integration of a fourth activity into m6 group and creation of a multimedia sales house Executive Board Production & TV Radio Diversification Audiovisual Rights SND M6 Films Channels Production RTL RTL2 FUN Web Ventadis Interactions Division FCGB Catalogue M6 Studio RTL
Slide 34: Targeting EBITA of €38 million for radio division by 2020
radio m6 group is targeting ebita of €38 million for the radio division by 2020 EBITA bringing together the sales teams dedicated to the Television, Radio and €38 m innovation in content, including News Digital markets to strengthen the due to rtl’s leadership, as well as attractiveness of the marke
Slide 35: Key figures
key figures 35
Slide 36: Increase in results
KEY FIGURES KEY FIGURES (€ millions) INCREASE IN RESULTS 2016 2017 ALL-TIME HIGH +8.5% ALL-TIME HIGH 1,387.3 1,278.7 +11.1% +5.1% +22.2% 948.0 1,110.3 1,166.6 853.3 +1.3% 245.5 248.7 +3.7% 203.5* 158.4 152.8 77.1 28.0 CONSOLIDATED ADVERTISING OTHER OPERATING OPERATING CONSOLIDATED NET PROFIT REVENUE
Slide 37: Q1 2018 key figures
KEY FIGURES - Q1 2018 SOLIDITY OF TV AND INTEGRATION OF THE RADIO DIVISION KEY FIGURES (€ millions) Q1 2017 Q1 2018 +11.0% 359.2 323.7 +20.0% 252.2 210.2 -5.4% 47.1 44.6 CONSOLIDATED of ADVERTISING CONSOLIDATED REVENUE which REVENUE EBITA 37
Slide 38: Revenue since 1994 (initial public offering)
key figures 3.revenue since 1994 (initial public offering) aagr+ 11% 1 462 1 421 1 387 1 356 1 355 1 377 1 383 1 387 1 275 1 283 1 258 1 250 1 279 1 177 1 198 1 071 991 743 629 526 457 362 276 311 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 39: EBITA since 1994 (initial public offering)
key figures 4.ebita since 1994 (initial public offering) aagr +3% 242 245 246 249 230 236 223 219 211 212 206 208 194 200 184 189 190 181 165 135 109 84 86 71 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 39
Slide 40: Net cash position (since 2007)
key figures 5.net cash position (since 2007) sale of 5% of exceptional canal+ for dividend paid of +€384 m -€193 m exceptional dividend paid of 378 -€125 m 329 318 285 261 177 176 acquisition 89 85 of rtl radios 38 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 acquisitions acquisition of ac
Slide 41: Outlook
outlook 41
Slide 42: Outlook: challenges
OUTLOOK CHALLENGES STRENGTHENING DEVELOPING SUPPORTING ESTABLISHING BUILDING A EVENTS BASED AND IN-HOUSE NEW WAYS OF A NEW EQUILIBRIUM MULTIMEDIA LOCAL CONTENT PRODUCTION CONSUMING TV WITH DISTRIBUTORS GROUP PROGRAMMES 42
Slide 43: Appendices
appendices 43
Slide 44: Condensed consolidated statement of comprehensive income
2017 / 2016 M6 GROUP 31 DECEMBER 2016 31 DECEMBER 2017 CHANGE (€ millions) REVENUE 1,278.7 1,387.3 108.6 OTHER OPERATING REVENUES 77.1 28.0 (49.1) TOTAL OPERATING REVENUES 1,355.8 1,415.4 59.5 MATERIALS AND OTHER OPERATING EXPENSES (60.7) (647.8) (708.5) PERSONNEL COSTS (INCL. PROFIT SHARING PLAN (1
Slide 45: Condensed balance sheet
2017 / 2016 M6 GROUP 31 December 2016 31 December 2017 CHANGE (€ millions) GOODWILL 101.5 235.6 134.1 NON-CURRENT ASSETS 100.6 304.7 405.3 CURRENT ASSETS 141.3 680.6 822.0 CASH & CASH FINANCIAL STATEMENTS (120.2) EQUIVALENTS 174.4 54.3 CONDENSED TOTAL ASSETS 1,261.3 1,517.1 255.8 BALANCE SHEET GROUP
Slide 46: Cash flow statement
2017 / 2016 M6 GROUP 31 DECEMBER 2016 31 DECEMBER 2017 CHANGE (€ millions) SELF-FINANCING CAPACITY FROM OPERATIONS 373.2 363.5 (9.7) OPERATING WCR MOVEMENTS (21.0) (31.9) (10.9) INCOME TAX (83.7) (111.4) (27.7) CASH FLOW FROM OPERATING 268.5 220.2 (48.4) ACTIVITIES CASH FLOW FROM INVESTMENT (145.8)
Métropole Télévision (M6 Group) — Investor Presentation (May 2018) on 6ix