Slide 1: RTL Group Presentation
RTL GROUP PRESENTATION Brussels, 21 June 2013 The leading European entertainment network
Slide 2: Agenda: Q1 Highlights
Agenda ● Q1 HIGHLIGHTS o Business Review o Strategy Review 2
Slide 3: Quarter 1 highlights 2013
Quarter 1 highlights 2013 REVENUE €1.3 billion REPORTED EBITA continuing operations €207 million EBITA MARGIN CASH CONVERSION NET DEBT POSITION NET RESULT 15.6% 164% €278 million €133 million QUARTER 1 BUSINESSES STRATEGY STRONG OPERATIONAL RESULTS AND EXCEPTIONAL CASH GENERATION 3
Slide 4: Agenda: Business Review
Agenda o Q1 highlights ● BUSINESS REVIEW o Strategy Review 4
Slide 5: Leading integrated pan-European entertainment network with a truly global presence
Leading integrated pan-European entertainment network with a truly global presence BROADCAST + CONTENT + DIGITAL #1 in Europe #1 global TV Follow viewers entertainment across all platforms #1 in Germany producer Online network of #1 in Benelux Productions in 62 200+ websites countries >6.9bn video v
Slide 6: RTL Group: at the heart of the European media ecosystem
RTL Group: at the heart of the European media ecosystem LARGEST EUROPEAN FTA BROADCASTER LARGEST EUROPEAN CONTENT PRODUCER / DISTR. 2012 CONSOLIDATED REVENUES (€BN) 2012 REVENUES (€MN) €6.0bn 1,711 €3.7bn 2x €2.7bn (a) 870 €2.6bn 12x 138 €2.4bn QUARTER 1 BUSINESSES Scale matters: first choice partne
Slide 7: Leading positions in key European markets
Leading positions in key European markets GERMANY FRANCE #1 #2 6 FTA channels 3 FTA channels 3 Pay channels 8 Pay channels #1 Audience/ad shr. #2 Audience/ad shr. 54% Group EBITA 21% Group EBITA NETHERLANDS BELGIUM #1 #1 4 FTA channels 3 Pay channels 3 FTA channels Germany, France, Netherlands, Belg
Slide 8: Audience share growth: successful channel family strategy, branding and programming
Audience share growth: successful channel family strategy, branding and programming… Family concept GERMANY FRANCE NETHERLANDS Flagship/ FTA Thematic/ Pay 2.2 0.8 1.7 Audience share gain +1.4pp +9.1pp 2008 to 2012 +2.3pp 0.3 -1.5 -6.9 QUARTER 1 BUSINESSES Channel families successfully increase audie
Slide 9: Drives outperformance across our TV ad markets
…drives outperformance across our TV ad markets GERMANY FRANCE NETHERLANDS 13% 6% 10% 10% +3pp +10pp +11pp TV ad market growth outperfomance 2008 to 2012 -4% -1% Market Market Market Net TV advertising market RTL Group net TV ad revenue QUARTER 1 BUSINESSES First choice for advertisers across our fo
Slide 10: Germany: #1 broadcaster with strong online network
Germany: #1 broadcaster with strong online network MEDIENGRUPPE RTL DEUTSCHLAND BROADCAST DIVERSIFICATION Flagship (1984) Online/ 2nd Gen Mobile (from 1993) Teletext Niche FTA (2012) Media Services/ Licensing/ games Digital pay thematics Rights (2006) QUARTER 1 Strong online & mobile portfolio, BUSI
Slide 11: Focus on first class local content
Focus on first class local content… STRONG LOCAL CONTENT RTL TELEVISION SPLIT BY PROGRAMME HOURS 2011 Daytime #1 News & Magazines #1 32% Reality #1 28% Local Fiction #1 2% Sport #1 13% 13% 13% US Series / Movies #1 Entertainment Shows #1 # Audience Share QUARTER 1 BUSINESSES 87% locally produced, of
Slide 12: Leads to strongest channel family
...leads to strongest channel family... AUDIENCE MARKET LEADERSHIP (14-49 YEAR OLDS, ALL DAY – JAN-DEC 2012) MGD RTL 33.7% P7S1 27.8% Pubcaster 19.1% 15.9% 11.3% 9.9% 7.7% 6.4% 5.6% 7.0% 6.8% 5.3% 2.2% 1.1% 1.0% n/a 0.4% RTL VOX RTL II Super n-tv Nitro Pro7 Sat1 Kabel 1 Sixx Sat 1 ARD ZDF Dritte RTL
Slide 13: And solid Q1 financial results
…and solid Q1 financial results AUDIENCE SHARE – FAMILY OF CHANNELS SHARE OF NET ADVERTISING MARKET (in %) 14-59 (in %) 46.4 RTL 30.9 30.1 31.5 32.4 32.6 31.3 31.7 RTL 43.8 43.9 44.4 29.4 43.5 43.7 43.9 29.5 43.3 26.9 27.4 26.9 27.6 26.7 26.4 26.0 43.4 43.1 25.2 41.6 41.4 40.8 41.4 41.4 P7S1 23.9 P7
Slide 14: France: strong #2 broadcaster with differentiated diversification
France: strong #2 broadcaster with differentiated diversification GROUPE M6 BROADCAST DIVERSIFICATION Flagship Online (1987) Mobile 2nd Gen (from 2005) Rights Distr. Niche FTA (2012) Music/ Shows Distance Digital pay Selling thematics (from 1996) Sports M6 the #2 FTA channel, W9 the leading DTT Prof
Slide 15: Groupe M6: consistent outperformer in French market
Groupe M6: consistent outperformer in French market OUTPERFORMANCE: AUDIENCE SHARE OUTPERFORMANCE: NET TV AD GROWTH HOUSEWIVES <50 ALL DAY 11.7% 11.2% 37.7% 2.4% 1.6% -3.5% -4.5% 33.0% 33.3% 2010 2011 2012 Groupe M6 Market 17.5pp 10.4pp SOLID RESULTS, GOOD MARGINS (€MN) REVENUE EBITA 22.9% EBITA 21.
Slide 16: With Q1 results demonstrating financial strength
With Q1 results demonstrating financial strength AUDIENCE SHARE – MAIN CHANNELS NET TV ADVERTISING MARKET DEVELOPMENT HOUSEWIVES <50 ALL DAY (in %) Q1 2013 VS Q1 2012 (in %) -1.0 +0.1 -1.2 -0.5 +2.6 44.1 Market M6 TF1 25.6 16.0 9.8 4.5 -3.9 M6 TF1 France 2 France 3 Others -10.8 -13.0 x Percentage po
Slide 17: Netherlands: #1 broadcaster with innovative digital offers
Netherlands: #1 broadcaster with innovative digital offers RTL NEDERLAND BROADCAST DIVERSIFICATION Flagship (from 1989) Online/ Mobile 2nd Gen (from 1993) Teletext/ Telephony Digital pay thematics (from 2009) Rights/ Licensing Market leader, well positioned #1 online video sales house with growing c
Slide 18: RTL Nederland: clear market leadership
RTL Nederland: clear market leadership…. AUDIENCE SHARE LEADERSHIP NET TV ADVERTISING GROWTH 20-49, PRIMETIME 15.4% 10.2% 11.7% 32.9% 4.3% 32.3% 30.1% -6.1% -5.4% 2010 2011 2012 3.2pp 12.3pp RTL Nederland Market 26.9% 24.0% STRONG TOP-LINE & PROFITABILITY (€MN) REVENUE EBITA 20.0% EBITA 25% 23% Marg
Slide 19: Continuing into Q1 2013
…..continuing into Q1 2013 AUDIENCE SHARE: 20-49, PRIMETIME (in %) NET TV ADVERTISING MARKET DEVELOPMENT Q1 2013 vs Q1 2012 (in %) +1.3 -3.0 -0.8 -1.4 +0.9 Market RTL Nederland 19.8 14.4 8.4 4.5 5.6 -5,7 RTL 4 NED 1 SBS 6 RTL 5 Net 5 -7,2 x Percentage point deviation vs FY 2012 Source: RTL Group est
Slide 20: RTL Belgium, undisputed market leader
RTL Belgium, undisputed market leader RTL BELGIUM SNAPSHOT BELGIUM SOUTH TV AD MARKET AND RTL BELGIUM Key highlights SHARE (2008-2012) CAGR 2.4% o Audience share leader by a 220 197 189 214 203 1st Gen significant margin 0.18% 0.18% 0.18% 0.19% 0.18% o Ad share leadership – 3x bigger than closest 2n
Slide 21: FremantleMedia: TV entertainment production and rights exploitation worldwide
FremantleMedia: TV entertainment production and rights exploitation - worldwide FREMANTLEMEDIA Production o Produced more than 9,100 hours of original TV content in 2012 o Delivers long-lasting blockbusters for broadcasters around the world Exploitation o Exploits the value of brands on TV and beyon
Slide 22: FremantleMedia develops, produces and invests in a diversified portfolio of brands
FremantleMedia develops, produces and invests in a diversified portfolio of brands NON-SCRIPTED #1 entertainment series #1 daytime entertainment Highest rated entertainment for 9 years in US show in US show in Holland since 1995 World’s top travelling format in Highest-rated launch ever on On air si
Slide 23: Roll-out capability is a key competitive advantage
Roll-out capability is a key competitive advantage UNIQUE ABILITY TO RAPIDLY ROLL-OUT GLOBALLY FREMANTLEMEDIA LAUNCHES (CUMULATIVE, 2001 TO 2012) Territories Months QUARTER 1 BUSINESSES Beyond roll-out, we also distribute content for partners in 150+ territories STRATEGY 23 Source: FremantleMedia
Slide 24: Unprecedented capability to exploit TV brands on and off air
Unprecedented capability to exploit TV brands on and off air AMERICAN IDOL CASE STUDY Slot Machines Lottery On-Air GAMBLING Off-Air SPONSORING Disney World LIVE EVENTS Touring GAMING Social Slots SOCIAL Website DOWNLOAD 2nd Screen Multiplatform: game in development QUARTER 1 BUSINESSES FremantleMedi
Slide 25: FremantleMedia – Q1 2013
FremantleMedia – Q1 2013 KEY FACTS 2013 KEY FINANCIALS (in € million) REVENUE EBITA ● Core franchises remain strong o Idols: 13th season confirmed for US version X Factor: 3rd season confirmed in US upfront by Fox 311 303 Got Talent: continued high ratings on ITV1 ROS ROS 4.2% 3.3% ● Worldwide prese
Slide 26: We follow our audience into the digital world
We follow our audience into the digital world... DIGITAL GROWTH Strong site portfolio ONLINE • Leading TV sites NETWORK • Growing content verticals and REACH ventures Monthly unique +15% 61mn users across yoy Leading catch-up TV offers group (2012) NON-LINEA • Among top 3 video sales houses R in GER
Slide 27: Generating online revenue across multiple new activities
...generating online revenue across multiple new activities DIGITAL REVENUE DIGITAL REVENUE 2012 Digital Business Segments (€MN) • Display ads for online/mobile In-Page Ad (e.g. banners, skyscrapers) • Richmedia ad formats 200 +14% • Online video advertising (e.g pre-rolls) yoy In-Stream Ad • Long-f
Slide 28: Agenda: Strategy Review
Agenda o Full-year highlights o Business Review ● STRATEGY REVIEW 28
Slide 29: Strategic priorities in the three key business segments
Strategic priorities in the three key business segments BROADCAST DIGITAL CONTENT Family of Online/mobile Adapt the business channels portfolio Re-transmission Maintain scale in Online video fees traditional business Geographic Build presence Digital advertising expansion in new areas QUARTER 1 BUSI
Slide 30: RTL Group needs to maintain reach in broadcast, adapt content business and expand in online video
RTL Group needs to maintain reach in broadcast, adapt content business and expand in online video POSITION CHANNEL FAMILIES Maintain OPTIMIZE FTA-FOOTPRINT, AGAINST FRAGMENTATION DEVELOP PAY Reach GROW RE- Diversify MULTIPLE PLATFORM Brands TRANSMISSION FEES Monetisation PRESENCE BROADCAST MAINTAIN
Slide 31: RTL Group Presentation
RTL GROUP PRESENTATION Brussels, 21 June 2013 The leading European entertainment network
Slide 32: RTL Group: key financial takeaways
RTL Group: key financial takeaways REVENUE Delivering consistent top-line growth; diversified revenue streams COST Flexible cost base, conservative programming rights accounting policy EBITA EBITA exceeding €1bn for the last 3 years CAPEX. WORKING Efficient working capital and capex management CAPIT
Slide 33: Review of Results March 2013, continuing operations (1/2)
Review of Results 31 March 2013, continuing operations (1/2) 3 months to 3 months to Per cent In € million March 2013 March 2012 change REVENUE 1,329 1,322 +0.5 REPORTED EBITA 207 191 +8.4 Reported EBITA margin (%) 15.6 14.4 +1.2pp Net result attributable to RTL Group shareholders 133 112 +18.7 UNDE
Slide 34: Review of Results March 2013, continuing operations (2/2)
Review of Results 31 March 2013, continuing operations (2/2) In € million 3 months to 3 months to Per cent March 2013 March 2012 change REPORTED EBITA 207 191 +8.4 Impairment of investment in associates and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries and joi
Slide 35: Cash Flow Statement as of March 2013
Cash Flow Statement as of 31 March 2013 In € million 3 months to 3 months to March 2013 March 2012 NET CASH FLOW FROM OPERATING ACTIVITIES 327 149 Add: Income tax paid 25 81 Less: Acquisition of assets, net (12) (35) Equals: Reported free cash flow (FCF) 340 195 Acquisition of subsidiaries and JVs,
Slide 36: Efficient capital structure allowing for growth and sustainable dividend policy
Efficient capital structure allowing for growth and sustainable dividend policy DIVIDEND PAYMENTS AND PAYOUT RATIO (€MN) 264% 127% 113% 132% (a) o Extraordinary dividend paid in 2013 773 789 789 835 o Clear commitment to sustainable dividend 541 policy o Future payout ratio of 50 – 75% of adjusted 2