Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — Groupe M6 — Investor Presentation (November 2019)
48 slides from Metropole Television Sa's investor presentation, November 2019
Slide 1: Presentation 2019
PRESENTATION 2019 GROUPE
Slide 2: Disclaimer
DISCLAIMER STATEMENTS CONTAINED IN THIS DOCUMENT, PARTICULARLY THOSE THE CONTENT OF THIS DOCUMENT MUST NOT BE CONSIDERED AS AN CONCERNING FORECASTS ON FUTURE M6 GROUP PERFORMANCE, ARE OFFER DOCUMENT OR AS A SOLICITATION TO BUY OR SELL M6 FORWARD-LOOKING STATEMENTS THAT ARE POTENTIALLY SUBJECT GROUP
Slide 3: M6 Group Presentation
M6 GROUP PRESENTATION 1. PROFILE 2. ACTIVITIES 3. KEY FIGURES 4. OUTLOOK 5. APPENDICES 3
Slide 4: M6 Group key facts 2018
WORKFORCE: CREATION IN 2,223 2ND 1987 AROUND THE CHANNEL PERMANENT CONTRACTS FRENCH SALES HOUSE 25.3% ADVERTISING MARKET SHARE OF FTA AT 31 DECEMBER CHANNELS IN 2018 2018 4 FTA 21.4% AUDIENCE SHARE ON CHANNELS 2018 REVENUE 2018 EBITA COMMERCIAL TARGET OF FTA CHANNELS IN 2018 RADIO STATIONS 3 €1,421M
Slide 5: Profile
PROFILE 5
Slide 6: Powerful line-up: broadcasting, content, diversification
CONTENT ACQUISITION & PRODUCTION PROFILE POWERFUL LINE-UP RADIO CONTENT TV CONTENT BROADCASTING BROADCASTING DIVERSIFICATION 1. M6 GROUP IS VERY WELL POSITIONED WITH AN ATTRACTIVE AND 6
Slide 7: Key dates
PROFILE 2.KEY DATES CREATION OF STUDIO 89 LAUNCH OF CREATION OF MÉTROPOLE PRODUCTION, TO MONITOR THE PRODUCTION CREATION M6 SHARES LISTED ON THE SECOND MARCHÉ CREATION OF THE IN THE DEVELOPMENT OF OF M6 M6 BOUTIQUE IN CHARGE OF MAGAZINES OF THE PARIS STOCK EXCHANGE CREATION OF THE TELESHOPPING CHANN
Slide 8: Breakdown of 2018 revenue and EBITA
PROFILE 3.BREAKDOWN OF 2018 REVENUE AND EBITA REVENUE EBITA TELEVISION TELEVISION €966.5 m €214.0 m 68% 78% RADIO €167.0 m RADIO 12% €28.0 m 10% DIVERSIFICATION DIVERSIFICATION €211.1 m €25.1 m 15% 9% PRODUCTION & AUDIOVISUAL RIGHTS PRODUCTION & AUDIOVISUAL €76.5 m RIGHTS €8.7 m 5% 3% 8
Slide 9: Corporate governance
PROFILE 5.CORPORATE GOVERNANCE ELMAR HEGGEN NICOLAS DE TAVERNOST CHAIRMAN OF THE CHAIRMAN OF THE SUPERVISORY BOARD EXECUTIVE BOARD COO OF RTL GROUP SUPERVISORY BOARD THOMAS VALENTIN JEROME LEFEBURE DAVID 5 MEMBERS REPRESENTING RTL GROUP VICE-CHAIRMAN OF MEMBER OF THE LARRAMENDY 3 INDEPENDENT MEMBERS
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: Content broadcasting objectives
ACTIVITIES 1.CONTENT BROADCASTING 1 OBJECTIVES MAXIMIZING POWER EFFECT OF THE SALES 1 ADVERTISING HOUSE REVENUES OPTIMIZING THANKS TO THE OPTIMAL USE OF 2 PROGRAMMING COST STOCK RIGHTS AND IN-HOUSE PRODUCTION SUBSIDIARIES 12
Slide 13: Television – a family of complementary channels targeting women under 50
ACTIVITIES – CONTENT BROADCASTING 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 WOMEN THE REFERENCE CHANNEL THE MAJOR FOR UPPER SOCIO-
Slide 14: 2018: stability of viewing time on a 10 year trend
ACTIVITIES – CONTENT BROADCASTING - TELEVISION 2018: STABILITY OF VIEWING TIME ON A 10 YEAR TREND Source : MMW Médiamétrie - Médiamat 14
Slide 15: 2018: M6, No 2 channel on the commercial target
ACTIVITIES – CONTENT BROADCASTING - TELEVISION 2018: M6, No 2 CHANNEL ON THE COMMERCIAL TARGET FULL-YEAR WRP<50 AUDIENCE SHARE OF TV GROUPS (%) 36,6 34,1 34,1 33,3 33,0 32,6 32,7 32,6 32,2 32,0 32,1 32,3 26,0 24,8 23,1 21,9 22,2 22,3 21,5 21,2 21,1 20,8 21,3 21,4 20,5 20,4 20,5 20,9 19,2 20,0 18,5 1
Slide 16: M6 stable during primetime on commercial target
ACTIVITIES – CONTENT BROADCASTING - TELEVISION 2018: FOR THE PAST 5 YEARS, THE M6 CHANNEL HAS REMAINED STABLE DURING PRIMETIME, AT A GOOD LEVEL ON THE COMMERCIAL TARGET AUDIENCE SHARE 4+ / WRP<50* (%) / AUDIENCE IN MILLIONS OF VIEWERS – 9.10PM-11PM TIMESLOT - CONSOLIDATED AUDIENCE FIGURES +1pp = 19
Slide 17: M6 and TF1 neck and neck in access primetime
ACTIVITIES – CONTENT BROADCASTING - TELEVISION M6 AND TF1 NECK AND NECK IN ACCESS PRIMETIME WRP<50 AUDIENCE SHARE RATIO MONDAY-FRIDAY 5.30PM – 9PM 2018 Sept-Dec 2018 89% 99% Source: Médiamétrie 17
Slide 18: W9 and 6ter among leading DTT channels
ACTIVITIES – CONTENT BROADCASTING - TELEVISION W9 AND 6TER AMONG THE LEADING DTT CHANNELS ON THE COMMERCIAL TARGET 3,2 3,3 3,0 3,0 2017 2018 2,6 2,6 2,7 2,6 2,1 2,2 2,0 1,9 1,9 1,8 1,7 1,8 1,7 1,6 1,6 4+ AUDIENCE 1,6 1,6 1,5 1,4 1,2 SHARE (%) 1,2 1,1 1,2 1,1 1,1 1,1 0,6 0,7 0,6 0,7 4,3 4,1 4,0 3,8 3
Slide 19: M6 Group advertising revenue reached an all-time high
ACTIVITIES – CONTENT BROADCASTING M6 GROUP ADVERTISING REVENUE REACHED AN ALL-TIME HIGH +0.5% 834.0 829.5 FREE-TO-AIR CHANNELS M6 GROUP NET ADVERTISING REVENUE (€ m) 2017 2018 +12.6% 1,067.1 OTHER OPERATIONS 948.0 233.1 118.5 2017 2018 2017 2018 19
Slide 20: Free-to-air channels advertising market share stabilised
ACTIVITIES – CONTENT BROADCASTING - TELEVISION M6 GROUP FREE-TO-AIR CHANNELS SAW THEIR ADVERTISING MARKET SHARE STABILISE AT A HIGH LEVEL CHANGE IN NET* TV ADVERTISING MARKET SHARE OF M6 GROUP’S FREE-TO-AIR CHANNELS SINCE 2009 (%) 2009/2017 2018 +3.1pp 25.7% 25.3%* 24.4% 23.7% 23.3% 23.5% 22.3% 22.4
Slide 21: Radio
ACTIVITIES – CONTENT BROADCASTING RADIO 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 21
Slide 22: The leading private radio group in 2018
10-YEAR RECORD IN TERMS OF AUDIENCE SHARE ONLY PRIVATE GROUP TO ACHIEVE GROWTH OVER 4 YEARS AUDIENCE SHARES BY PRIVATE GROUP (%) ACTIVITIES – CONTENT BROADCASTING - RADIO +1.5pp THE LEADING -1.2pp PRIVATE RADIO -2.4pp -0.2 pp GROUP IN 2018 * 19,3* 19,1 18,0 18,4 19,5 = 15,2 15,1 14,6 14,1 14,0 1
Slide 23: Q1 2019: M6 Groupe, 1st private radio group
ACTIVITIES – CONTENT BROADCASTING - RADIO Q1 2019 : M6 GROUPE, 1ST PRIVATE RADIO GROUP AUDIENCE SHARES BY PRIVATE GROUP (%) COMPETITIVE ADVANTAGE +4.3 pts ON CHALLENGER 18,2 13,9 12,7 10,3 6,1 Pole Radio RTL (3 stations) NRJ Group (4 stations) TF1 Publicité Radios (131 Lagardère (3 stations) RMC sta
Slide 24: Targeting EBITA of €38 million for Radio by 2020
ACTIVITIES – CONTENT BROADCASTING - 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
Slide 25: Content acquisition and production objectives
ACTIVITIES 2 2.CONTENT ACQUISITION AND PRODUCTION OBJECTIVES SAFEGUARDING 1 CONTENT SUPPLY FOR OUR TV CHANNELS DIVERSIFYING 2 REVENUES 25
Slide 26: Content acquisition and production revenue and EBITA
ACTIVITIES - CONTENT ACQUISITION AND PRODUCTION DISTRIBUTION One film REVENUE (€ m) A WEAKER LINE-UP OF DISTRIBUTED FILMS THAN IN 2017 2017 2018 1.1m -20.0% ADMISSIONS 95.6 4.0m ADMISSIONS 76.5 8.8m ADMISSIONS IN FRANCE BIGGEST BOX OFFICE SUCCESS FOR A FRENCH ANIMATED FILM IN 12 YEARS 0.6m ADMISSION
Slide 27: Digital activities objectives
ACTIVITIES 3.DIGITAL ACTIVITIES 3 OBJECTIVES 1 REINFORCING THE TV ACCESS ACCOMPANYING NEW USE AND INNOVATE FOR ADVERTISERS REINFORCING THE 2 AUDIENCE/CONTENT CONSUMPTION ON THE INTERNET 27
Slide 28: 25 million registered users on 6play
ACTIVITIES - DIGITAL 25 MILLION REGISTERED USERS ON 6PLAY IN OTT 6PLAY HAS A REAL STRENGTH ON THE ADVERTISING MARKET IN TERMS OF DATA 25m 24,2 24,6 23,8 22,9 23,3 22,3 22,6 21,6 22 20,8 21,2 20,4 19,5 18,1 16,8 15,2 13,8 12 9,3 7 3 Source: Gigya 28
Slide 29: High viewing figures on 6play
1.4 BN VIDEOS VIEWED OVER THE YEAR AVERAGE VIEWING TIME ACTIVITIES - DIGITAL 1H14 LEADER FOR CATCH-UP HIGH VIEWING SERVICES FIGURES ON 6PLAY 5.8% CONTRIBUTION TO GROUP CHANNELS’ AUDIENCE RATINGS ON THE MILLENNIAL TARGET SIGNIFICANTLY HIGHER THAN THAT OF OTHER CHANNELS’ CATCH-UP SERVICES. Total TV au
Slide 30: Diversification objectives
ACTIVITIES 4.DIVERSIFICATION 4 OBJECTIVES USE AIR-TIME AND AVAILABLE 1 - AIR-TIME : HOME-SHOPPING, CALL-TV, … ADVERTISING SLOTS TO GENERATE NEW REVENUE - ADVERTISING TIME: M6 INTERACTION, … M6 GROUP, ONE OF THE MOST DIVERSIFIED TV 2 GROUPS IN EUROPE … DIVERSIFYING REVENUES (25% OF REVENUE FROM NON A
Slide 31: Diversification revenue and EBITA
TURNOVER OF THE ACTIVITIES - DIVERSIFICATION ASSET PORTFOLIO DECLINE IN BUSINESS VOLUME - TURNOVER OF THE ASSET DECLINE IN REVENUE INCREASED REVENUE AND DISPOSALS PORTFOLIO AND EBITA EBITA DESPITE DISPOSAL OF THE CLUBIC.COM PORTAL Momentum of REVENUE (€ m) 2017 -10.6% 2018 Significant decline in bus
Slide 32: Key figures
KEY FIGURES 32
Slide 33: Record results 2018
KEY FIGURES (€ millions) KEY FIGURES 2017 published RECORD RESULTS 2017 restated 2018 +7.3% ALL-TIME HIGH 1,387.3 1,421.4 1,324.5 +12.6% +8.4% ALL-TIME HIGH 1,067.1 1,166.6 1,079.7 1,170.0 948.0 948.0 +4.9% HIGHEST LEVEL IN 12 YEARS 248.7 253.7 266.1 +14.8% 181.8 28.0 158.4 158.4 8.9 14.7 CONSOLIDAT
Slide 34: 9M 2019 - solid results
KEY FIGURES (€ millions) KEY FIGURES 9M 2018 9M 2019 - SOLID RESULTS 9M 2019 +1.2% 997,0 1 009,1 +2.7% 739.9 759.8 +1.5% 179.7 182.4 CONSOLIDATED ADVERTISING CONSOLIDATED REVENUE REVENUE EBITA MARGIN FROM RECURRING OPERATIONS 18.0% 18.1% 34 In 2018, M6 Group applied IFRS 5 - Non-current assets held
Slide 35: Revenue since 1994 (IPO)
KEY FIGURES REVENUE SINCE 1994 (INITIAL PUBLIC OFFERING) AAGR 7% 1 462 1 421 1 421 1 377 1 387 1 383 1 356 1 355 1 325 1 275 1 283 1 258 1 279 1 250 1 177 1 198 1 071 991 743 629 526 457 362 311 276 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 36: EBITA since 1994 (IPO)
KEY FIGURES EBITA SINCE 1994 (INITIAL PUBLIC OFFERING) AAGR +6% 266 254 242 245 246 236 230 223 219 211 212 208 206 200 189 194 190 184 181 165 135 109 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 2018 36
Slide 37: Net cash position (since 2007)
KEY FIGURES NET CASH POSITION (SINCE 2007) SALE OF 5% EXCEPTIONAL OF CANAL+ DIVIDEND PAID OF FOR +€384 M -€193 M EXCEPTIONAL DIVIDEND PAID OF 378 -€125 M 329 318 285 261 SALE OF FCGB AND MONALBUMPHOTO.FR 177 176 89 94 85 38 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ACQUISITION OF A
Slide 38: Outlook
OUTLOOK 38
Slide 39: 2019 challenges: consolidate within the core
CONTINUE TO DEVELOP STRONG DEVELOP FORMAT CREATION AND BRANDS THAT CONTENT CREATE A STIR PRODUCTION OUTLOOK 2019 CHALLENGES: STRENGTHEN ITS CONSOLIDATE OVERALL WITHIN THE CORE SUPPORT NEW USAGE PATTERNS POSITIONING IN THE MEDIA BUSINESS MARKET CAMPAIGN FOR CONTINUE THE UPGRADE OF RADIO/TV INADEQUATE
Slide 40: Acquisition of Lagardère Group's TV division
ACQUISITION OF LAGARDÈRE GROUP’S TV DIVISION BY M6 GROUP A LEADING CHILDREN’S TV DIVISION WITH A DTT CHANNEL THAT COMPLEMENTS THOSE OF M6 EXTREMELY WELL Kids and pre-school pay TV channels Music & millennials Free-to-air children’s Music & entertainment Canal J & Tiji pay TV channels TV channel GULL
Slide 41: Positive trend for Gulli over the years with kids
ACQUISITION OF LAGARDÈRE GROUP’S TV DIVISION BY M6 GROUP POSITIVE TREND FOR GULLI OVER THE YEARS WITH KIDS 20 4-10 years audience share (%) 18 16 16 15 15 15 15 15 15 14 13 13 12 12 11 10 8 6 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Médiamétrie Médiamat 41
Slide 42: Key figures of Lagardère Group's TV division
ACQUISITION OF LAGARDÈRE GROUP’S TV DIVISION BY M6 GROUP KEY FIGURES OF THE LAGARDÈRE GROUP’S TV DIVISION 2016 2017 98 99 2018 96 23 21 20 CONSOLIDATED CONSOLIDATED REVENUE * EBITA * *proforma 42
Slide 43: Development drivers
ACQUISITION OF LAGARDÈRE GROUP’S TV DIVISION BY M6 GROUP DEVELOPMENT DRIVERS INCREASED POWER OF PROGRAMMES IMPROVED DISTRIBUTION OF THE DUE TO M6 GROUP’S OVERALL POSITION IN THE CHANNELS THANKS TO M6 GROUP’S CONTENT MARKET AND ITS ABILITY TO CREATE PROGRAMMES THAT APPEAL TO ALL THE FAMILY PLATFORMS
Slide 44: Targeting EBITA of €40 million for the division by 2023
ACQUISITION OF LAGARDÈRE GROUP’S TV DIVISION BY M6 GROUP M6 GROUP IS TARGETING EBITA OF €40 MILLION FOR THE DIVISION BY 2023 EBITA €40 M +14, 0 €23 M PRICE OF THE DEAL 2018 2023 €215 M (EX .CASH) 44
Slide 45: Appendices
APPENDICES 45
Slide 46: Condensed consolidated statement of comprehensive income
31 December 2017 2018 / 2017 change M6 Group 31 December 2018 restated (€ millions) Revenue 1,324.5 1,421.4 96.9 Other operating revenues 8.9 14.7 5.8 Total operating revenues 1,333.5 1,436.1 102.6 Materials and other operating expenses (686.7) (711.0) (24.2) Personnel costs (including profit sharin
Slide 47: Condensed balance sheet
2018 / 2017 change M6 Group 31 December 2017 31 December 2018 (€ millions) Goodwill 235.6 193.6 (42.0) Non-current assets 405.3 363.0 (42.2) FINANCIAL STATEMENTS Current assets 822.0 820.0 (1.9) CONDENSED Cash and cash equivalents 54.3 132.8 78.5 BALANCE SHEET TOTAL ASSETS 1,517.1 1,509.5 (7.6) Grou
Slide 48: Cash flow statement
2018 / 2017 31 December 31 December M6 Group change 2018 2017 restated (€ millions) Self-financing capacity from operations 364.8 374.7 (9.9) Operating WCR movements (22.9) (34.2) 11.3 Income tax (61.2) (111.2) 50.0 Cash flow from operating activities 280.8 229.3 51.5 Cash flow from investment activ