Slide 1: Entertain. Inform. Engage.
Entertain. Inform. Engage.
Slide 2: Agenda
Agenda 1 2 3 4 2017 Full-year Group Business Outlook 2016 highlights financials update 2017 2
Slide 3: Highlights: Success across all three strategic pillars
Highlights Success across all three strategic pillars Broadcast Content Digital EBITA up Margin up Revenue up +€68m +7.3% +32% Record year for MG RTL in FremantleMedia back on Global growth in ad tech and Germany and Groupe M6 in growth track multi-channel networks France High-end drama slat
Slide 4: Record results in 2016
Highlights Record results in 2016 +3.4% € 6,237 million € 3.00 Revenue Ordinary dividend EBITA Margin +3.3% 19.3% € 1,205 million € 720 million EBITA Net profit 4
Slide 5: Global force in total video: engaging Millennials
Highlights Global force in total video: engaging Millennials Owned Number Engagement New assets of creators metrics launches 85,000 20m subscribers on creators one single talent # 1 worldwide 26bn +162% 6,500 500m views per month YoY creators social followers # 1 fashion 1,200 350m creators social f
Slide 6: Digital: a very dynamic third strategic pillar
Highlights Digital: a very dynamic third strategic pillar DIGITAL REVENUE In € million Non-advertising Advertising 2.9x Digital 670 revenue goal 508 achieved earlier than expected! 295 233 2013 2014 2015 2016 Targeting at least 15% in 4.0% % of total RTL Group revenue 10.7% the next 3-5 years Source
Slide 7: Platform revenue: well-established revenue stream
Highlights Platform revenue: well-established revenue stream RTL GROUP PLATFORM REVENUE HD SUBSCRIBERS, GERMANY In € million1) In million +13.3% HD channels +16.1% 281 248 7.2 Thematic channels 6.2 VOD on managed platforms 2015 2016 2015 2016 1) Platform revenue defined as revenue generated across a
Slide 8: Revenue mix: highly diversified
Highlights Revenue mix: highly diversified RTL GROUP 2016 REVENUE SPLIT DEPENDENCY FROM TV ADVERTISING In % TV advertising Other1) Other revenue 11.5 TV advertising 48% Digital 10.7 Content €6.2 bn 48.0 53% 21.2 Platform revenue 4.5 55% 4.1 Radio advertising 1.) Others include home shopping, merchan
Slide 9: Revenue and EBITA reaching new all-time highs
Highlights Revenue and EBITA reaching new all-time highs REVENUE EBITA In € million 6,237 +3.4% In € million 1,205 +3.3% 6,000 5,707 5,765 1,000 898 5,707 898 2007 2011 2016 2007 2011 2016 9
Slide 10: Redefining 'TV' to 'Total Video'
Group Strategy Redefining ‘TV’ to ‘Total Video’ LINEAR NON-LINEAR CONTENT TECH & DATA Total Total Total TV Video Video Video Family of channels Usage growing fast, Content remains key Tech & data are critical strong and profitable business models still especially when exclusive, for video monetisati
Slide 11: Agenda
Agenda 1 2 3 4 2017 Full-year Group Business Outlook 2016 highlights financials update 2017 11
Slide 12: Review of results: Revenue, EBITA and EBITDA at record levels
Review of results 31 December 2016 Revenue, EBITA and EBITDA at record levels Full-year to Full-year to Per cent In € million December 2016 December 2015 change Revenue 6,237 6,029 +3.4 Underlying revenue 6,202 6,020 +3.0 Operating cost base 5,209 4,964 +4.9 EBITA 1,205 1,167 +3.3 EBITA margin (%) 1
Slide 13: Lower net profit mostly due to higher tax expense
Review of results 31 December 2016 Lower net profit mostly due to higher tax expense Full-year to Full-year to Per cent In € million December 2016 December 2015 change EBITA 1,205 1,167 +3.3 Amortisation and impairment of fair value adjustments on acquisitions of (14) 4 subsidiaries and re-measureme
Slide 14: Significantly higher cash generation
Review of results 31 December 2016 Significantly higher cash generation Full-year to Full-year to In € million December 2016 December 2015 Net cash flow from operating activities 1,106 983 Add: Income tax paid 267 238 Less: Acquisition of assets, net (210) (207) Equals: Reported free cash flow (FCF)
Slide 15: Attractive dividend yield
Review of results 31 December 2016 Attractive dividend yield Full-year to In € million December 2016 Profit for the year attributable to RTL Group shareholders 720 Adjustments for: Contract termination M6 Mobile (21) Adjusted net result 699 Ordinary dividend, in € per share 3.00 Ordinary dividend, a
Slide 16: Agenda
Agenda 1 2 3 4 2017 Full-year Group Business Outlook 2016 highlights financials update 2017 16
Slide 17: #1 TV Family in Germany
#1 TV FAMILY IN GERMANY
Slide 18: Mediengruppe RTL Deutschland: Fifth consecutive year of record earnings
Mediengruppe RTL Deutschland Fifth consecutive year of record earnings NET TV ADVERTISING KEY FINANCIALS MARKET GROWTH1) In € million 2,214 +3.5% In % REVENUE 1,966 1,948 1,912 1,892 +2.5 – 3.5% 705 +3.1% 2016 EBITA CAGR +8.8% 529 551 329 297 2007 2011 2016 EBITA 17% 28% 32% margin 1) RTL Group esti
Slide 19: Clear #1: audience lead over P7S1 further increased in 2016
Mediengruppe RTL Deutschland Clear #1: audience lead over P7S1 further increased in 2016 FAMILY OF CHANNELS 14 to 59, FY 2016 MG RTL 28.4% PRIME TIME (20 – 23h), 14 to 59 (in %) Others 11.9% +4.6 pp 22.4% 6.8% 12.7 ARD-III 9.7% 6.9% 8.1 8.4% ARD 8.6% 25.3% ZDF P7S1 RTL ProSieben Source: AGF in coope
Slide 20: Growing strategic advantage with local content
Mediengruppe RTL Deutschland Growing strategic advantage with local content Vox surpassing ProSieben Most successful channel #1 commercial broadcaster Vox surpassing in total audience ProSieben in total audience launch in Germany PROGRAMME HOURS1) AUDIENCE NEWSHARE HEIGHTS WITH > In 2016 > Women 40
Slide 21: Group
GRouP
Slide 22: Groupe M6: Record EBITA, outstanding audience shares
Groupe M6 Record EBITA, outstanding audience shares FAMILY OF CHANNELS Women < 50 responsible GROUPE M6 22.2% KEY FINANCIALS for purchases, FY 2016 In € million REVENUE EBITA 16.0% Others 1,254 1,283 33.3% 6.2% Record audience share 252 205 France 3 3.9% 32.0% 8.6% France 2 Groupe TF1 2015 2016 2015
Slide 23: Groupe M6: Live TV events fuel non-linear success
Groupe M6 Live TV events fuel non-linear success 5th highest TV audience ever Reached 15m registered users 72% total audience share Euro 2016 drives 6play usage to Watched by 21 million viewers (4+) 1.5bn video views, +54% YoY growth 23
Slide 24: #1 TV Family in Netherlands
# 1 TV FAMILY IN NETHERLANDS
Slide 25: RTL Nederland: Strong audience shares, challenging TV ad market
RTL Nederland Strong audience shares – challenging TV ad market FAMILY OF CHANNELS KEY FINANCIALS -2% 20 to 49, Prime time, RTL Nederland 32.3% (in € million) TV ad market FY 2016 REVENUE EBITA Others 22.3% 18.3% 490 495 Clear market 14.0% leader 101 85 25.4% 20.0% Pubcaster SBS 2015 2016 2015 2016
Slide 26: #1 in Europe
#1 IN EUROPE
Slide 27: Other markets: Good performance overall
Other markets Good performance overall BELGIUM 202 HUNGARY Clear market leader Revenue up driven by 104 Revenue slightly up platform revenue 43 EBITA back to normal 12 FRENCH RADIO 164 CROATIA 38 Top ratings ─ #1 in France To be Revenue and EBITA up acquired Lower EBITA reflects 5 by M
Slide 28: Power
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Slide 29: FremantleMedia: Delivering on promise to expand client base
FremantleMedia Delivering on promise to expand client base What we announced What we delivered IPO PRESENTATION ─ MARCH 2013 DIGITAL New entrants VOD/OTT Pay-TV FTA Content produc- tion 29
Slide 30: FremantleMedia: Signature shows for global media brands
FremantleMedia Signature shows for global media brands Recently aired To be continued… Coming in 2017/18 Deutschland 86 American Gods The Young Pope Baron Noir Hard Sun Picnic at Hanging Rock Modus 30
Slide 31: FremantleMedia: Investments in content pipeline pay off
FremantleMedia Investments in content pipeline pay off KEY FINANCIALS In € million REVENUE EBITA Slowdown Others 35 US Cable & gaming (45) 1,524 Acquisitions 62 (76) FX 1,500 103 110 2015 2016 2015 2016 ~12,000 hours of content aired in 2016 (+16% on 2015) 31
Slide 32: Digital Leader
DIGITAL LEADER
Slide 33: From a broadcaster to a global 'Total Video' powerhouse
Digital transformation From a broadcaster to a global ‘Total Video’ powerhouse LINEAR NON-LINEAR CONTENT TECH & DATA Total Total Total TV Video Video Video Leading #1 Global MCN Growing Top 5 FTA in EU #1 EU catch-up digital brands global ad-stack 33
Slide 34: Multi-channel networks: Our MCNs are market leaders
Multi-channel networks Our MCNs are market leaders #1 Global MCN #1 Fashion MCN #1 European MCN VIDEO VIEWS VIDEO VIEWS VIDEO VIEWS In billion In billion In billion +56% +19% +243% 25 19 206 898 16 16 60 2015 2016 2015 2016 2015 2016 Source: Internal figures 34
Slide 35: Leading presence in key European markets
Multi-channel networks Leading presence in key European markets #1 German MCN VIDEO VIEWS IN GERMANY #1 MCN in the UK In million 898 #1 MCN in the France MCN in the #1 Netherlands RTL Group Studio 71 Tube One IDG Germany FullScreen Source: Figures from ComScore data from Dec 16, RTL Group includes B
Slide 36: Advertising technology: platforms growing and already profitable
Advertising technology Our platforms are growing and already profitable Strong business growth AD DECISIONS In billion, per day +60% 12 >1,500 7.5 publishers 2015 2016 >15m Addressable TV households in Germany FY 2016 REVENUE GROWTH YOY KEY EXPERTISE PROGRAMMATIC +99% REVENUE +18% ~470 FTE in ad-tec
Slide 37: Clear leader in Addressable TV in Germany
Advertising technology Clear leader in Addressable TV1) in Germany FAST GROWING MARKET Growth of Addressable TV enabled +56% (HbbTV) households in 2016 Ad overlays during normal TV programme EXCLUSIVE PARTNER 18 German TV channels use Smartclip as exclusive technical provider for their 18 addressabl
Slide 38: Covering the 'Total TV' advertising monetisation
Advertising technology Covering the ‘Total TV’ advertising monetisation LINEAR NON-LINEAR TV / Set top boxes PC / Mobile Programmatic Cross-screen Over the Top Programmatic Household Online Video Optimisation Addressable TV linear TV level targeting (linear) RTL GROUP INVESTMENTS Still in pilot phas
Slide 39: Agenda
Agenda 1 2 3 4 2017 Full-year Group Business Outlook 2016 highlights financials update 2017 39
Slide 40: Outlook for 2017
RTL Group Outlook for 2017 Revenue expected to grow 1 moderately, predominantly driven by the Group’s digital businesses EBITDA 2 to be broadly stable 40
Slide 41: Thank you!
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Slide 42: Questions & Answers
Join the conversation using #RTLResults QUESTIONS & ANSWERS
Slide 43: 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