Slide 1: RTL Group Full-year results 2021
17 17 March 2022 March 2022 RTL Group RTL Group Full-year results 2021 Full-year results 2021 RTL Group Full-year results 2021 1
Slide 2: Agenda
Agenda 01 02 03 04 05 Highlights Financials Operations Strategy & Deep dive: Outlook Fremantle RTL Group Full-year results 2021 2
Slide 3: Highlights
01 Highlights 3
Slide 4: Highlights
Highlights ꟷ Strong growth of revenue and profit ꟷ TV advertising revenue +16% ꟷ Fremantle revenue +25% ꟷ Group profit on all-time high ꟷ Streaming: paying subscribers +74% to more than 3.8 million ꟷ Major consolidation moves to build national cross-media champions ꟷ Progress on Fremantle growth pla
Slide 5: Financials
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Slide 6: Strong growth in revenue, Adjusted EBITA and Group profit
Strong growth in revenue, Adjusted EBITA and Group profit in € million Organic growth1 +13.5% Change +10.3% Margin 14.2% 17.4% 1,454 6,637 6,017 +35.1% 1,152 x2.3 853 625 2020 2021 2020 2021 2020 2021 Group revenue Adjusted EBITA1 Group profit Note: 1. For definition, see slide 39-40 RTL Group Full-
Slide 7: TV advertising revenue +4% above pre-crisis level
TV advertising revenue +4% above pre-crisis level Organic growth +4.3% Group +/-0% +10% revenue in € million 6,651 6,637 6,017 +5% +10% -8% -4% -3% +36% +2% +4% 2,057 1,964 2,168 1,518 1,466 1,404 1,655 1,610 1,422 1,401 1,455 1,186 Q1/2019 Q1/2020 Q1/2021 Q2/2019 Q2/2020 Q2/2021 Q3/2019 Q3/2020 Q3/
Slide 8: Adjusted EBITA before streaming start-up losses on record level
Adjusted EBITA before streaming start-up losses on record level in € million 1,078 1,148 1,144 1,167 1,205 1,248 1,171 1,156 853 1,152 Adjusted EBITA Streaming start-up losses 4 55 166 1,318 1,248 Adjusted EBITA 1,078 1,148 1,144 1,167 1,205 1,171 1,160 before streaming 908 start-up losses1 2012 201
Slide 9: Record Group profit
Record Group profit in € million Full year to Dec 2021 Full year to Dec 2020 Per cent change Adjusted EBITA 1,152 853 35% Significant special items (61) (34) EBITA 1,091 819 33% Impairment of goodwill of subsidiaries - (11) Amortisation and impairment of fair value adjustments on acquisitions of sub
Slide 10: Continued high Operating cash conversion rate
Continued high Operating cash conversion rate in € million Full year to Dec 2021 Full year to Dec 2020 Per cent change Net cash from operating activities 932 933 +/-0% Add: Income taxes paid 437 248 Add: Transaction-related costs 72 - Less: Acquisition of and proceeds from sale of programme rights a
Slide 11: Proposal in line with dividend policy
Proposal in line with dividend policy in € million Full year to Dec 2021 Profit for the year attributable to RTL Group shareholders 1,301 Adjustments (from SpotX, Super RTL, VideoAmp, Stéphane Plaza Immobilier, Eureka) 335 Adjusted profit for the year attributable to RTL Group shareholders 967 10.3%
Slide 12: Operations
03 Operations 12
Slide 13: RTL Deutschland: Strong growth of RTL+
RTL Deutschland: Strong growth of RTL+ Key financials Family of channels Highlights in € million Audience shares, in % 14 to 59, 2021 22% 26.3% 2.712 million paying subscribers Margin on 31 Dec 2021: +111% yoy Viewing time: +47% vs. 2020 14% 67 originals in 2021 vs 37 in 2020 2,425 9.0 Others 24.2 6
Slide 14: Groupe M6: Record financial performance
Groupe M6: Record financial performance Key financials Family of channels Highlights in € million Audience shares, in % Women < 50 responsible 24% for purchases, 2021 22.8% Margin 9% High audience shares for main channel M6 1,390 14.7 Others 30.5 24% 8.1 Active users +6% in 2021 – service to be 1,27
Slide 15: RTL Nederland: Exceptional audience performance, record revenue
RTL Nederland: Exceptional audience performance, record revenue Key financials Family of channels Highlights in € million Audience shares, in % Adults 25 to 54, prime time, 19% 2021 34.2% Margin 1.092 million paying subscribers on 31 Dec 2021: +21% yoy 21% Others Viewing time: +5% vs. 2020 575 17.1
Slide 16: Fremantle: Record revenue, strong profit growth
Fremantle: Record revenue, strong profit growth Key financials Highlights in € million 7% Margin Organic +16% growth 25% 1,926 62% 1,537 141 87 Drama & Film Entertainment Factual Shows & The Hand of God, The Mosquito Coast, Exit, The Masked Singer, American Idol, The Investigation, Eldorado KaDeWe A
Slide 17: Strategy & Outlook
04 Strategy & Outlook 17
Slide 18: Strategy framework unchanged
Strategy framework unchanged Core Growth Alliances & Partnerships Portfolio transformation Creativity & Communications & People Regulation Entrepreneurship Marketing Enabler RTL Group Full-year results 2021 18
Slide 19: Strategy update – Core
Strategy update – Core Create cross-media champions Value creation potential ~ €250-350m ꟷ Rationale: National media groups with scale, run-rate synergies to be resources and creative power to compete with fully realised by 2026 global tech platforms ꟷ Investments: Enhanced capabilities to invest in
Slide 20: Strategy update – Growth
Strategy update – Growth Build national streaming champions Targets by 2026 +74% Paying subscribers in million 3.80 10m paying subscribers 1.09 2.19 0.90 Videoland 0.90 0.65 2.71 €1bn streaming revenue RTL+ 1.29 0.78 2020 2021 ~ €600m content spend p.a. Key figures in € million Streaming revenue1 17
Slide 21: Strategy update – Growth
Strategy update – Growth One app, all media Watch Listen Read − Growing number of RTL+ originals − Music − Premium magazines from Gruner + Jahr − Programming library of >50,000 − Audio books hours across all genres − Podcasts − Live stream of all 14 TV channels from RTL Deutschland in HD quality − R
Slide 22: Strategy update – Growth
Strategy update – Growth Expand global content business Target 2025 unchanged ꟷ Scripted drama: Become preferred partner for global Total revenue Fremantle streamers; Fremantle now produces 3x more non- in € billion English drama than US major studios ~3.0 ꟷ High-end factual: Leverage market demand
Slide 23: Strategy update – Portfolio changes
Strategy update – Portfolio changes Status Consolidation Closing expected Sale to DPG Media and Groupe Rossel for cash proceeds of €250m End of March 2022 Closing expected Sale to Central European Media Enterprises (CME) for a total consideration of €50m Q2/2022 Acquisition of the outstanding 50% sh
Slide 24: Strategy update – Target structure
Strategy update – Target structure National cross-media champions Global content business Germany France The Netherlands Hungary Other businesses 100% 16% 70% 100% + + 100% Cross-country cooperation and competencies Target: Ad tech TechAlliance €3bn in revenue via organic growth and M&A by 2025 Stre
Slide 25: Outlook 2022
Outlook 2022 Key assumptions for 2022 outlook Market Portfolio Business FY 2022: Continued full consolidation of No significant impact from Covid-19 Continued strong audience performance Groupe M6 and RTL Nederland, full and the war in Ukraine of RTL channels consolidation of Gruner + Jahr (RTL DE)
Slide 26: Outlook 2022
Outlook 2022 2021 Net scope Organic growth 2022 Actual effects ~5 to 6% Outlook In € billion +0.4 Revenue 6.6 +0.4 ~7.4 Streaming Development before scope effects and streaming Adjusted EBITA 1.15 +0.0 +0.1 ~1.15 -0.1 Streaming -0.17 ~ -0.25 start-up losses Adjusted EBITA before streaming 1.32 ~1.40
Slide 27: Outlook 2022
Outlook 2022 2021 2022 Revenue €6.6bn ~€7.4bn Adjusted EBITA €1,152m ~€1.15bn Streaming start-up losses €166m ~€0.25bn ‘Adjusted EBITA before €1,318m ~€1.4bn streaming start-up losses’ 27
Slide 28: Growing to a €3 billion company
Growing to a €3 billion company Jennifer Mullin, CEO of Fremantle 28
Slide 29: The content market is booming
The content market is booming Continued growth Regional platforms AVOD of SVOD and platform scaling and starting to prove reaching scale and demand for content successful deploying globally Traditional pay-TV Linear broadcasters Growing demand investing in originals investing more in originals for d
Slide 30: Digital platforms driving growth of commissions
Digital platforms driving growth of commissions The market Fremantle 10-fold increase in original launches on digital platforms Fremantle has grown revenues from SVOD platforms by >500% (2015 - 2021) in last three years (from €55m in 2018 to €346m in 2021) >1,000 titles # Original titles launched >1
Slide 31: Driving growth through three strategic pillars
Driving growth through three strategic pillars Protect & grow core Diversify portfolio Maximise global network Maintain positions as a leading producer Continue to grow drama, film and Increase development and ownership and distributor of entertainment shows documentary business of IP Invest to crea
Slide 32: Entertainment: protect and grow leadership position
Entertainment: protect and grow leadership position Nurturing existing brands Investing in new formats & brands #1 Entertainment series 2020/21 In 14 territories: Armenia, Demark, for ABC (average audience 7.1m) Sweden added in 2021 Most successful reality TV format, Season 2 on Netflix in 2021 watc
Slide 33: Grow drama business
Grow drama business Fremantle delivered 81 film & drama productions in 13 languages in 2021 (+42% vs 2020). Planning to deliver 101 titles in 2022. Through both a build and buy strategy. RTL Group Full-year results 2021 33
Slide 34: Grow film business
Grow film business Fremantle significantly scaling film business: releasing 17 titles in 2022 vs. 10 in 2021 and 6 in 2019. Opportunity created by new monetisation models (direct to platform, accelerated transaction window, hybrid models) and increase demand for movies from new and traditional platf
Slide 35: Grow documentaries business
Grow documentaries business Fremantle plan to grow this genre significantly over the next three years. Planning to deliver 44 documentaries in 2022. Documentary unit formed in September 2021 to drive this business. RTL Group Full-year results 2021 35
Slide 36: Expanding network through M&A
Expanding network through M&A April 2021 May 2021 September 2021 March 2022 March 2022 increased increased stake acquired 12 acquired 70% acquired 25% of stake to 100% from 25% to 51% production labels of Lux Vide Fabel Entertainment across Scandinavia RTL Group Full-year results 2021 36
Slide 37: Talent remains critical to our business
Talent remains critical to our business Working with the best talent in-front and behind the camera Angelina Jolie Paolo Sorrentino Afua Hirsch RTL Group Full-year results 2021 37
Slide 38: RTL Group #RTLresults Full-year results 2021
17 17 March 2022 March 2022 RTL Group #RTLresults Full-year results 2021 RTL Group Full-year results 2021 38
Slide 39: Definitions
Definitions Alternative performance measure Explanation Adjusted EBITA represents a recurring operating result and excludes significant special items. RTL Group management has established an ‘Adjusted EBITA’ that neutralises the impacts of structural distortions for the sake of transparency. Based o
Slide 40: Definitions
Definitions Alternative performance measure Explanation Significant special items exceed the cumulative threshold of €5 million, need to be approved by management, and primarily consist of restructuring expenses or reversal of restructuring provisions and other special factors or distortions. The ad
Slide 41: 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