Rtl Group S.a. · LUXSE:RTLL

Rtl — FY2013 Earnings Presentation

44 slides from Rtl's earnings presentation, Mar 6, 2014

  1. Slide 1: Full-year results

    The leading European entertainment network I0|2 Full-year results Frankfurt/Main, 6 March 2014 GROUP

  2. Slide 2: Agenda

    Agenda 1 2 3 4 2014 5 Full-year Business Group Outlook 2014 Strategy 2013 highlights segments financials update 2

  3. Slide 3: Impressive results in tough economic environment

    1 2 3 4 5 Impressive results in tough economic environment € 5,889 million Revenue 106% Cash conversion rate YoY growth: 19.6% EBITA Margin YoY growth: +6.9%  +45.7%  € 1,152 million Reported EBITA continuing operations € 870 million Net profit 3

  4. Slide 4: A year of significant value creation

    1 2 3 4 5 A year of significant value creation Largest European media IPO* All profit indicators up High cash generation Increase of EBITA YoY Total dividends € stock price**: growth: for 2013: +69% +6.9% € 7.00 per share May Jul Sep Nov Dec 2013 2013 2013 2013 2013 More efficient capital structure,

  5. Slide 5: Agenda

    Agenda 1 2 3 4 2014 5 Full-year Business Group Outlook 2014 Strategy 2013 highlights segments financials update 5

  6. Slide 6: Mediengruppe RTL Deutschland: Strong audience lead over main competitor

    1 2 3 4 5 Mediengruppe RTL Deutschland Strong audience lead over main competitor FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %) 14 – 59 (in %) -1.1 -0.6 -0.1 -0.2 -0.5 -0.1 32.6 13.9 32.4 31.5 31.3 9.5 30.6 8.8 8.5 8.0 30.1 7.4 RTL 26.9 27.4 26.9 26.0 25.2 25.2 RTL Sat 1 Pro 7 ZDF ARD Vox P7S1 +0.2 +/

  7. Slide 7: Mediengruppe RTL Deutschland: EBITA exceeds €600 million for the first time

    1 2 3 4 5 Mediengruppe RTL Deutschland EBITA exceeds €600 million for the first time NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) FY 2013 vs. FY 2012 (in %) REVENUE EBITA +1.1% 29.3% ROS 31.1% 1,982 2,003 + 2.2% +7.1% +1.0 to 2.0% 622 581 Market MG RTL 2012 2013 2012 2013 Deut

  8. Slide 8: Groupe M6: Ongoing audience fragmentation, good start for 6ter

    1 2 3 4 5 Groupe M6 Ongoing audience fragmentation, good start for 6ter FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) -0.8 -0.3 -1.0 -0.5 34.1 32.9 33.3 33.0 32.6 25.2 32.2 Groupe TF1 16.2 10.0 4.5 21.5 21.2 21.0 20.0 20.5 20.4 Groupe M6 TF1 France 2 Fran

  9. Slide 9: Groupe M6: Outperforming a difficult market

    1 2 3 4 5 Groupe M6 Outperforming a difficult market NET TV ADVERTISING KEY FINANCIALS MARKET DEVELOPMENT (in € million) FY 2013 vs. FY 2012 (in %) REVENUE EBITA -0.3% 16.1% ROS 15.0% Market M6 TF1 1,387 1,383 -0.6 -7.6% < -4.0 224 207 -5.0 2012 2013 2012 2013 M6 and TF1 as reported 9

  10. Slide 10: RTL Nederland: Excellent audience performance

    1 2 3 4 5 RTL Nederland Excellent audience performance FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %) 20 – 49, Primetime (in %) 35.2 +0.4 -3.8 -0.8 +0.3 +0.1 33.5 18.9 32.9 RTL 32.3 31.7 13.6 30.1 8.4 8.1 29.1 6.0 28.3 29.3 27.3 25.3 25.3 RTL 4 Ned 1 SBS 6 Ned 3 RTL 5 26.9 26.8 24.0 Pubcast

  11. Slide 11: 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) FY 2013 vs. FY 2012 (in %) REVENUE EBITA +5.6% 22.5% ROS 22.6% Market RTL Nederland 455 +/-0 431 +6.2% 103 97 -3.0 2012 2013 2012 2013 Source: RTL Group estimates (spot and non

  12. Slide 12: 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 -0.5% 21.4% ROS 22.0% +0.1 +0.2 +0.4 -1.8 210 209 36.4 +2.2% 23.6 45 46 18.8 5.0 RTL Pubcaster AB 3 French 2012 2013 2012 2013 Belgium Channels Source:

  13. Slide 13: RTL Radio (France): Audience leadership maintained

    1 2 3 4 5 RTL Radio (France) Audience leadership maintained, EBITA margin stable AUDIENCE SHARE BY GROUP KEY FINANCIALS 13+, 5 – 24H, MON – FRI (in %) (in € million) REVENUE EBITA 16.7% ROS 16.6% -2.8% +/-0p +0.6p -0.1p -0.6p 180 175 19.6 -3.3% 18.3 15.4 30 29 12.5 RTL NRJ Lagardère Pubcaster 2012 2

  14. Slide 14: Hungary, Croatia and Spain: Improved operating results

    1 2 3 4 5 Hungary, Croatia and Spain Improved operating results in declining markets RTL HUNGARY RTL CROATIA ATRESMEDIA* – SPAIN 101 100 741 830 REVENUE 31 33 (in € million) 2012 2013 2012 2013 2012 2013 ROS 8.9% 15.0% 5.3% 9.6% +66.7% +105% 80 EBITA (in € million) 15 39 9 2012 0 2012 2013 2013 2012

  15. Slide 15: FremantleMedia: Stable EBITA despite lower revenue

    1 2 3 4 5 FremantleMedia Stable EBITA despite lower revenue KEY FINANCIALS REVENUE BRIDGE 2012 – 2013 (in € million) (in € million) REVENUE EBITA 1,711 1,711 51 81 1,533 43 3 1,533 8.1% ROS 8.9% Negative FX European Branded Other production entertainment & licensing 138 136 2012 2013 2012 2013 2012

  16. Slide 16: Agenda

    Agenda 1 2 3 4 2014 5 Full-year Business Group Outlook 2014 Strategy 2013 highlights segments financials update 16

  17. Slide 17: Review of results: Revenue & EBITA

    1 2 3 4 5 Review of results 31 December 2013 Revenue & EBITA Full-year to Full-year to Per cent In € million December 2013 December 2012 change Revenue 5,889 5,998 (1.8) Underlying revenue 5,914 5,998 (1.4) Operating cost base 4,830 4,992 (3.2) Reported EBITA 1,152 1,078 +6.9 Reported EBITA margin (

  18. Slide 18: Review of results: EBITA to net profit bridge

    1 2 3 4 5 Review of results 31 December 2013 EBITA to net profit bridge Full-year to Full-year to Per cent In € million December 2013 December 2012 change Reported EBITA 1,152 1,078 +6.9 Reversal of/(loss on) impairment of investment in associates; amortisation and impairment of fair value adjustmen

  19. Slide 19: Dividends for fiscal year 2013

    1 2 3 4 5 Dividends for fiscal year 2013 Attractive dividend yield Extraordinary interim dividend € 2.50 Paid in September 2013 Proposed dividends reflect strong cash flow as well as future investment plans Ordinary dividend Ordinary dividend in line with € 2.50 Proposed, to be paid in May 2014 RTL

  20. Slide 20: Agenda

    Agenda 1 2 3 4 2014 5 Full-year Business Group Outlook 2014 Strategy 2013 highlights segments financials update 20

  21. Slide 21: RTL Group Outlook for 2014

    1 2 3 4 2014 5 RTL Group Outlook for 2014 RTL Group expects its total revenue and EBITA to be broadly stable, at constant 1 scope and exchange rates, providing the European debt recovery continues RTL Group’s operating cash conversion rate, historically close to 100 per cent, 2 is not expected to ch

  22. Slide 22: Agenda

    Agenda 1 2 3 4 2014 5 Full-year Business Group Outlook 2014 Strategy 2013 highlights segments financials update  Broadcast  Content  Digital 22

  23. Slide 23: RTL Group continues to lead in all of its three strategic pillars

    1 2 3 4 5 RTL Group continues to lead in all of its three strategic pillars BROADCAST CONTENT DIGITAL  #1 or #2 in 8 European countries  #1 global TV entertainment content  Leading European media company  Leading broadcaster: producer in online video 55 TV channels and 27 radio stations  8,500

  24. Slide 24: Enhancing broadcast portfolio

    1 2 3 4 5 Enhancing broadcast portfolio BROADCAST  Newly launched channels growing above expectations ✔ Strengthen family of channels  Retransmission fees have become significant profit contributors in Germany, ✔ Grow France, Netherlands, Belgium and Hungary non-ad business  #1 or #2 in 8 Europea

  25. Slide 25: Programming: Continuous programme investments

    1 2 3 4 5 Programming Continuous programme investments Established brands New formats I’m A Celebrity … Rising Star Get Me Out Of Here! Hit talent show from Israel 2013 2014 37% Audience share 40% L`amour est dans le pré Euro 2016 championship and #1 dating show in France 2018 World Cup qualifiers 3

  26. Slide 26: Family of channels: Constant expansion to counter fragmentation

    1 2 3 4 5 Family of channels Constant expansion to counter fragmentation Successful launches Launches in 2014 Germany PAY GER ✔ FR ✔  Launch planned for 8 May 2014  Premium documentary channel Croatia FTA NL ✔ HU ✔  Kids and family channel, since 11 January 2014  Up to 20% of viewers aged 4 to 1

  27. Slide 27: Geographic Expansion: Joining forces in Asia

    1 2 3 4 5 Geographic Expansion Joining forces in Asia RTL CBS Entertainment HD Partnership already in 4 markets Malaysia ✔ #1 in Europe #1 in the US Singapore ✔ Philippines ✔ Launched Launch planned for 27 March 2014 Family entertainment targeting Male-skewed entertainment Thailand ✔ basic pay-TV ar

  28. Slide 28: Broadcast: Priorities for 2014 and beyond

    1 2 3 4 5 Broadcast Priorities for 2014 and beyond 1 Invest in top content 2 Grow new channels 3 Expand footprint in high growth markets 4 Grow second revenue stream 28

  29. Slide 29: RTL Group continues to lead in all of its three strategic pillars

    1 2 3 4 5 RTL Group continues to lead in all of its three strategic pillars BROADCAST CONTENT DIGITAL  #1 or #2 in 8 European countries  #1 global TV entertainment content  Leading European media company  Leading broadcaster: producer in online video 55 TV channels and 27 radio stations  8,500

  30. Slide 30: Create market-leading content

    1 2 3 4 5 Create market-leading content CONTENT  Resizing of resources concluded CONTENT  Initiatives to drive format development in place ✔ Maintain leading position  Acquisition strengthens drama production ✔ Rebalance portfolio  #1 global TV entertainment content producer  Growth of online r

  31. Slide 31: Recent acquisition strengthens scripted activities

    1 2 3 4 5 Recent acquisition strengthens scripted activities Acquisition of 51% stake in November 2013  Danish independent production company focused on high-end prime-time TV series and films  Acquisition strengthens FremantleMedia’s drama business and Nordic footprint  Recently won its first co

  32. Slide 32: FremantleMedia expanding in digital production and distribution

    1 2 3 4 5 FremantleMedia expanding in digital production and distribution Digital content EMERGING Web originals MCN invest- Distribution ments YouTube channels Cable/Pay Partner- TV shows ships Co-development and production of food vertical TV Network YoY growth: Shows Digital +194%  TRADITIONAL l

  33. Slide 33: Content: Priorities for 2014 and beyond

    1 2 3 4 5 Content Priorities for 2014 and beyond 1 Maintain core business 2 Diversify portfolio 3 Grow and develop the network 4 Build a scalable digital business 33

  34. Slide 34: RTL Group continues to lead in all of its three strategic pillars

    1 2 3 4 5 RTL Group continues to lead in all of its three strategic pillars BROADCAST CONTENT DIGITAL  #1 or #2 in 8 European countries  #1 global TV entertainment content  Leading European media company  Leading broadcaster: producer in online video 55 TV channels and 27 radio stations  8,500+

  35. Slide 35: Driving digital transformation

    1 2 3 4 5 Driving digital transformation DIGITAL DIGITAL  Increase of total online revenues +26% YoY* € 236m Online revenues  Online video advertising revenues +31% YoY in 2013 Grow online ad and non-ad business ✔  Europe’s #1 media company in online video  Generating 2.2bn monthly video views**

  36. Slide 36: Online video is at the heart of RTL Group's digital strategy

    1 2 3 4 5 Online video is at the heart of RTL Group’s digital strategy Strategic focus Strong growth Top 10 global player* VIDEO VIEWS RTL GROUP # COMPANY Catch-up Full year (in billion) 1 Google / YouTube 1 VOD TV services 2 Facebook +143% 3 AOL (including Adap.TV) 4 VEVO 16.8 5 DAILYMOTION Web New

  37. Slide 37: Premium VOD offers uniquely adapted to local markets

    VOD 1 2 3 4 5 Premium VOD offers uniquely adapted to local markets Ad funded Pay  7 day ad-funded catch-up TV service with pay features Germany like pre-TV, series passes and archive  Roll out to managed platforms and HBBTV  Catch-up TV service under unified brand 6play France  Extension of 6pla

  38. Slide 38: Acquiring and building successful web original content

    Web originals 1 2 3 4 5 Acquiring and building successful web original content Style Haul Golden Moustache #1 original video destination for A leading comedy network fashion, beauty and lifestyle in France RTL Group owns a 26.1% stake Distribution via YouTube and own website; “Best of” TV show on W9

  39. Slide 39: Thousands of 'channels' emerging on new platforms

    MCN 1 2 3 4 5 Thousands of ‘channels’ emerging on new platforms … FTA networks Cable networks OTT networks 39

  40. Slide 40: Targeting niche audiences on a global scale

    MCN 1 2 3 4 5 … targeting niche audiences on a global scale OTT platform Multi-channel networks Verticals Channels* Entertainment 34m views / 503k subscribers Sports Lifestyle 610m views / 758k subscribers Music Gaming 240m views / 1.5m subscribers * Overall video views and subscribers as of Februar

  41. Slide 41: BroadbandTV's leading technology platform

    MCN 1 2 3 4 5 BroadbandTV’s leading technology platform catalyses growth for content creators BroadbandTV + RTL Group Content driven ✔ ✔ ✔ Technology driven ✔ ✔ ✔ Smart deployment ✔ ✔ ✔ Auto optimisation ✔ ✔ Customisation ✔ ✔ ✔ Content Protection ✔ ✔ Analytics ✔ ✔ ✔ ✔ Actionable Insights ✔ ✔ Smart e

  42. Slide 42: With BroadbandTV, RTL Group has become a leading MCN player

    MCN 1 2 3 4 5 With BroadbandTV, RTL Group has become a leading MCN player 15 THOUSAND+ 120 MILLION+ #3 MCN Channels Channel subscribers On YouTube worldwide VIDEO VIEWS OF BROADBANDTV In billion CAGR 1 +117% 2 11.0 3 4 1.3 0.5 2009 2011 2013 5 Full-year view, incl. non-monetized views Ranking by uni

  43. Slide 43: 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 43

  44. Slide 44: 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

RTL Group — FY2013 Earnings Presentation on 6ix