Slide 1: Interim financial results, June 2014
The leading European Entertainment network Interim financial results, June 2014
Slide 2: Agenda
Agenda 1 2 3 4 2014 5 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 2
Slide 3: Sound results in tough economic environment
1 2 3 4 5 Sound results in tough economic environment 90% € 2,687 million Revenue Cash conversion rate Interim extraordinary 19.3% EBITA Margin € 2.00 dividend € 519 million Reported EBITA € 202 million Net profit 3
Slide 4: Agenda
Agenda 1 2 3 4 2014 5 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 4
Slide 5: Review of results: Revenue & EBITA
1 2 3 4 5 Review of results 30 June 2014 Revenue & EBITA Half-year to Half-year to Per cent In € million June 2014 June 2013* change Revenue 2,687 2,755 (2.5) Underlying revenue 2,660 2,731 (2.6) Operating cost base 2,209 2,237 (1.3) Reported EBITA 519 552 (6.0) Reported EBITA margin (%) 19.3 20.0 (
Slide 6: EBITA to net profit bridge
1 2 3 4 5 Review of results 30 June 2014 EBITA to net profit bridge Half-year to Half-year to Per cent In € million June 2014 June 2013 change Reported EBITA 519 552 (6.0) Impairment of goodwill of subsidiaries (88) - Reversal of impairment of investments accounted for using the equity method; amort
Slide 7: Cash Flow statement as of 30 June 2014
1 2 3 4 5 Review of results 30 June 2014 Cash Flow statement as of 30 June 2014 Half-year to Half-year to In € million June 2014 June 2013 Net cash flow from operating activities 401 595 Add: Income tax paid 142 130 Less: Acquisition of assets, net (78) (49) Equals: Reported free cash flow (FCF) 465
Slide 8: Net debt & EBITDA
1 2 3 4 5 Review of results 30 June 2014 Net debt & EBITDA Half-year to Full-year to In € million June 2014 December 2013* Gross financial debt (834) (565) Add back: Cash and cash equivalents 334 542 Other 25 29 Net financial cash/(debt) (475) 6 EBITDA 614 1,257 * Re-stated for IFRS 11 8
Slide 9: Agenda
Agenda 1 2 3 4 2014 5 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 9
Slide 10: Mediengruppe RTL Deutschland: Audience impacted by sports events
1 2 3 4 5 Mediengruppe RTL Deutschland Audience impacted by sports events FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %) 14 – 59 (in %) -1.4 +/-0 -0.3 +0.7 +1.1 -1.0 32.4 32.6 13.1 31.5 31.3 9.4 9.4 9.2 30.6 8.2 RTL 6.6 29.2 27.4 26.9 26.0 25.2 25.2 25.2 RTL Sat 1 Pro 7 ZDF ARD Vox P7S1 -0.3 -0.2 -0.1
Slide 11: Mediengruppe RTL Deutschland: Record EBITA on stable revenue
1 2 3 4 5 Mediengruppe RTL Deutschland Record EBITA on stable revenue NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) HY 2014 vs. HY 2013 (in %) REVENUE EBITA +0% 33.0% ROS 33.8% 927 927 +2.3% +2.0 to 3.0% Mediengruppe 313 RTL Deutschland 306 Market -1.1% HY 2013 HY 2014 HY 2013
Slide 12: Groupe M6: Resilient audience; growth continues for 6ter
1 2 3 4 5 Groupe M6 Resilient audience; growth continues for 6ter FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) -0.3 -0.9 +/-0 -0.1 34.1 33.3 33.0 32.6 32.2 32.2 Groupe 24.3 TF1 15.5 10.0 4.3 21.5 21.2 21.0 20.5 20.4 20.5 Groupe M6 TF1 France 2 France 3 M
Slide 13: Groupe M6: No sign of advertising market improvement
1 2 3 4 5 Groupe M6 No sign of advertising market improvement NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) HY 2014 vs. HY 2013 (in %) REVENUE EBITA -3.5% 18.3% ROS 16.9% Market M6 TF1 694 670 -1.0 -11.0% < -2.4 -3.7 127 113 HY 2013 HY 2014 HY 2013 HY 2014 Market: RTL Group est
Slide 14: RTL Nederland: Good audience performance despite sports events
1 2 3 4 5 RTL Nederland Good audience performance despite sports events FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %) 20 – 49, Primetime (in %) 35.2 -0.3 +5.0 +0.5 -2.7 +0.1 33.5 18.6 19.5 32.9 RTL 32.3 31.8 31.7 9.0 29.1 5.5 5.3 28.3 27.3 28.3 25.3 25.3 RTL 4 Ned 1 SBS 6 Ned 3 RTL 5 26.8
Slide 15: 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) HY 2014 vs. HY 2013 (in %) REVENUE EBITA +6.7% 18.1% ROS 19.6% Market RTL Nederland 224 8.2 +15.8% 210 44 1.7 38 HY 2013 HY 2014 HY 2013 HY 2014 Source: RTL Group estimates 15
Slide 16: 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 -2.9% 23.8% ROS 25.5% -1.7 +2.0 +1.0 -1.1 35.2 +4.0% 21.2 22.1 105 102 26 5.8 25 RTL Pubcaster AB 3 French HY 2013 HY 2014 HY 2013 HY 2014 Belgium Chan
Slide 17: RTL Radio (France): Weak market leads to lower EBITA
1 2 3 4 5 RTL Radio (France) Weak market leads to lower EBITA AUDIENCE SHARE BY GROUP KEY FINANCIALS 13+, 5 – 24H, MON – FRI (in %) (in € million) REVENUE EBITA -7.0% 15.1% ROS 8.8% -0.7p -0.7p +1.5p -1.5p 17.8 18.0 -46.2% 15.6 13.6 86 80 13 7 RTL NRJ Lagardère Pubcaster HY 2013 HY 2014 HY 2013 HY 2
Slide 18: Hungary, Croatia and Spain: Market recovery underway
1 2 3 4 5 Hungary, Croatia and Spain Market recovery underway RTL HUNGARY RTL CROATIA ATRESMEDIA* – SPAIN 423 451 REVENUE 45 46 17 17 (in € million) HY 2013 HY 2014 HY 2013 HY 2014 HY 2013 HY 2014 ROS 11.1% 10.8% 9.5% 13.3% +0.0% +50% EBITA 60 40 (in € million) 5 5 0 0 HY 2013 HY 2014 * HY 2013 HY 2
Slide 19: FremantleMedia: Difficult first half year
1 2 3 4 5 FremantleMedia Difficult first half year KEY FINANCIALS REVENUE BRIDGE (in € million) HY 2013 – HY 2014 (in € million) REVENUE EBITA 63 59 666 666 19 7.1% ROS 4.7% 47 623 19 623 47 Negative New Shows not Volume Other FX shows renewed decreases on returning 29 shows HY 2013 HY 2014 HY 2013
Slide 20: Agenda
Agenda 1 2 3 4 2014 5 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 20
Slide 21: RTL Group Outlook for 2014
1 2 3 4 2014 5 RTL Group Outlook for 2014 Weaker economic environment in France, the special 1 situation in Hungary and financial performance of FremantleMedia lead to slightly lower full year guidance RTL Group now expects its revenue to be slightly down 2 with EBITA to be down more significantly R
Slide 22: Agenda
Agenda 1 2 3 4 2014 5 Half-year Group Business Outlook 2014 Strategic 2014 highlights financials segments update 22
Slide 23: Broadcast: Retransmission fees continuing to grow
1 2 3 4 5 Broadcast Retransmission fees continuing to grow Strong growth in HD ... ... with further potential RTL GROUP PLATFORM REVENUE HD SUBSCRIBERS, GERMANY (in € million) (in million) (in million households) 1 36.7 +16.3% +29.7% Analogue TV 7.7 100 4.8 3.7 4.2 HD Digital TV 24.2 TECHNICAL 86 PO
Slide 24: Digital: Online video is at the heart of digital strategy
1 2 3 4 5 Digital Online video is at the heart of RTL Group’s digital strategy STRATEGIC FOCUS Strong growth Digital revenue increasing VIDEO VIEWS RTL GROUP Catch-up (in billion) 1 VOD TV services +226% +10% 113 Web New content 15.7 2 originals production 4.8 103 And distribution 3 MCN at global sc
Slide 25: Digital: Our MCN businesses show high growth
1 2 3 4 5 Digital Our MCN businesses show high growth … VIDEO VIEWS DEVELOPMENT (in billion) +123% +97% >200% 9.5 4.3 3.6 1.8 2.1 0.3 HY 2013 HY 2014 HY 2013 HY 2014 HY 2013 HY 2014 REVENUE 2.3x 2.6x 5.3x GROWTH #3 MCN Globally #1 Style #1 MCN Europe Source: Internal measurement Note : Stylehaul par
Slide 26: Digital: complemented by recent acquisition
1 2 3 4 5 Digital … and will be complemented by recent acquisition … Build premium Build scale in Build new sales competencies non-linear web original with cornerstone investment in digital video services and short-form video programmatic advertising ✔ Continuing SpotXchange’s impressive growth path
Slide 27: Digital: in a market that is growing rapidly
1 2 3 4 5 Digital … in a market that is growing rapidly GLOBAL PROGRAMMATIC SHARE OF ONLINE VIDEO ADVERTISING MARKET (in-Stream and in page video) (in USD billion) +24% CAGR 24.8 2014 – 18 Traditional video 20.4 9.4 +10% Programmatic 16.9 video Online 8.9 13.5 video CAGR 8.4 +39% (in USD bn) (14 – 1
Slide 28: 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 28
Slide 29: The leading European Entertainment network
The leading European Entertainment network
Slide 30: 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
Slide 31: Review of results: Net interest
Review of results 30 June 2014 Net interest Half-year to Half-year to In € million June 2014 June 2013 Total net interest expense (14) (6) Of which: IAS 19 related interest expense (4) (2) Tax related net interest (expense) (2) 1 Other discount effects (3) (3) Net interest income/(expense) (5) (2) 3
Slide 32: Review of results: Financial results
Review of results 30 June 2014 Financial results Half-year to Half-year to In € million June 2014 June 2013 Financial results other than interest (1) 11 Of which: Swap points (2) (1) Net gain on financial instruments at fair value through income statement - 1 Net gain and impairment on available for