Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — Television Franchise — Q1 2021 Earnings Presentation
35 slides from Television Francaise 1 Sa's earnings presentation, May 19, 2021
Slide 1: Post Q1 2021 Results Investor Presentation
POST Q1 2021 RESULTS INVESTOR PRESENTATION
Slide 2: TF1 Group: A diversified portfolio with content production, broadcasting and digital
TF1 GROUP: A DIVERSIFIED PORTFOLIO WITH CONTENT PRODUCTION, BROADCASTING AND DIGITAL TV CONTENT PRODUCTION & DISTRIBUTION BROADCASTING DIGITAL DRAMA / SCRIPTED FTA CHANNELS PUBLISHERS * THEME CHANNELS DOCUMENTARIES ANIMATION OTHER BROADCASTING ACTIVITIES BRAND SOLUTIONS AND SERVICES ** ENTERTAINMENT
Slide 3: ESG commitment at the heart of TF1 DNA
ESG COMMITMENT AT THE HEART OF TF1 DNA FOCUS ON CLIMATE STRATEGY TF1 ESG COMMITMENT recognised by extra- financial rating agencies CONTRIBUTING to low-carbon transition through our content 1st PLACE Companies with revenues NOTE AA NEW week-end show over €500 million Génération Ushuaïa 1 000 reports
Slide 4: Table of content
TABLE OF CONTENT A MAJ 1 OVERVIEW OF TF1 GROUP PROFILE AND THE FRENCH MEDIA MARKET (P.5) 2 2020 AND Q1 2021: STRONG ADAPTABILITY OF THE GROUP’S 3 BUSINESSES (P.12) 3 Q1 2021: FINANCIAL RESULTS (P.23) 4 2021 AND BEYOND: THE GROUP IS IN A GROWTH DYNAMIC WITH OPPORTUNITIES IN BOTH CONTENT AND DIGITAL (
Slide 5: Overview of TF1 Group profile and the French media market
1 OVERVIEW OF TF1 GROUP PROFILE AND THE FRENCH MEDIA MARKET 5
Slide 6: Q1 2021: TV is more than ever a very powerful media
Q1 2021: TV IS MORE THAN EVER A VERY POWERFUL MEDIA Viewing time still at a high level in Q1 2021 despite a high basis of comparison 03:58 TV Radio* Internet** 03:49 03:44 03:43 03:42 03:54 3:54 03:41 03:36 03:30 03:50 03:46 03:37 03:38 03:39 03:35 03:37 03:22 3:21 03:08 1:18 2:00 3:26 4+ W<50 PDM 3
Slide 7: TF1 Group: A winning, multi-channel strategy
TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY Clear leader among W<50PDM Increased leadership among 25-49 year-olds +1,6 pt vs Q1 2020 32.2% 31.6% 33.7% 29.4% 28.8% 30.4% 21.8% 21,8% 21.1% 21,1% 22,6% 22.6% 19.7% 19.2% 20,6% 20.6% 19,7% 19,2% Q1 2019 Q1 2020 Q1 2021 Q1 2019 Q1 2020 Q1 2021 Source: Mé
Slide 8: TF1 Group: A winning, multi-channel strategy, for individuals aged 25/49
TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY, FOR INDIVIDUALS AGED 25/49 In % 30.4% 20.6 ∆ 42% audience share vs M6 14.5 9.3 4TH FTA channel +0.8 pt vs W9 4.7 3.9 3.6 3.6 3.1 2.8 2.3 2.2 1.9 1.8 1.6 1.5 1.5 1.5 1.4 1.4 1.3 1.1 1.1 0.8 0.7 0.4 M6 F2 W9 F3 BFM TV C8 RMC déc. 6ter L'EQUIPE F5 CSTAR Gul
Slide 9: TF1 Group: A winning, multi-channel strategy, unrivalled in Europe
TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY, UNRIVALLED IN EUROPE Largest market share of any private Unrivalled lead in Europe over #2 sector European TV channel (% 2020 audience share of commercial target) ∆ VS CHALLENGER (% 2020 audience share of commercial target) 21.8 % +7.4 PTS 14.4 % 21.8 %
Slide 10: French net advertising market: strength of TV combined with digital
FRENCH NET ADVERTISING MARKET: THE STRENGTH OF TV COMBINED WITH DIGITAL’S CAPABILITIES 2021 estimate of the digital advertising market in France at +7%, accounting for €6.5bn* Evolution of TV and digital advertising market (€ billion) Media net ad revenue (€M) Q1 2020 Q1 2021 Digital (excl. search a
Slide 11: 2021: A year of change and monetization
2021: A YEAR OF CHANGE AND MONETIZATION Capacity to produce French Transposition of SMA New corporate drama with other European directive; tax rate producers objective is to share the (33% 25% in 2022) (26% 30%) burden of creation financing Dec. 2017 Jan. 2019 2021 Dec. 2018 Aug. 2020 From end J
Slide 12: 2020 and Q1 2021: Strong adaptability of the Group's businesses
2 2020 and Q1 2021: STRONG ADAPTABILITY of the Group’s 3 businesses 12
Slide 13: Increased appeal of our total video contents for younger generations
INCREASED APPEAL OF OUR TOTAL VIDEO CONTENTS FOR YOUNGER GENERATIONS Audience share 15/34 22.2% (record level - 4.2% 3.0% 82% OF THE TOP 100 FOR TF1 GROUP 20.0% in 2019) ACCESS DAILY SOAP Up to 33% audience share 57% audience share Up to 21.3% audience share Up to 20.7% audience share 4+ 24.1% 30.0%
Slide 14: 2 billion videos watched in 2020
A STRONG BOOST FOR THE GROUP’S CHANNELS 1st French TV replay platform NEW AMSTERDAM ICI TOUT COMMENCE 2 billion videos watched in 2020 Visuel (+10% vs 2019) Viewers experience +29% of viewers addition to linear TV +25% of viewers addition to linear TV 4.4/5 Apple store 4.3/5 Android store LES BRACEL
Slide 15: Confirmed agility of the advertising business
CONFIRMED AGILITY OF THE ADVERTISING BUSINESS FOOD 17.5% +10.6% CAR INDUSTRY 11.6% -20.8% • The Group managed to reach a high COSMETICS / BEAUTY 10.5% -10.3% level of revenue while maintaining RETAIL 9.5% +18.6% the value of the advertising inventory HEALTHCARE 7.2% +19.6% BANKING / INSURANCE 7.1% +
Slide 16: Confirmed position as a leader on local content
MORE THAN EVER, CONFIRMED ITS POSITION AS A LEADER ON LOCAL CONTENT 1 4 From to daily soaps between 2016 and Studios managed to shoot 2020, confirming Newen’s know-how and its over 200 days in 2020 ability to industrialize processes Up to 4.6m viewers 4.2m viewers 25.9% of audience share Up to 3.1m
Slide 17: Large variety of content thanks to global footprint
OFFERS A LARGE VARIETY OF CONTENT THANKS TO ITS GLOBAL FOOTPRINT CINEMA Erna at War Visuel Developped in 2020 TV MOVIES The Santa Squad TV SERIES ANIMATION DRAMA DRAMA DOCUMENTARY Ares Splat & Harry Candice Renoir Demain Nous Chambre 2806: Appartient L’affaire dsk BOOK OF ORDERS SCRIPTED REALITY R
Slide 18: Strong Q1 and good visibility
: STRONG Q1 AND GOOD VISIBILITY • Q1 2021 boosted by a catch-up effect in deliveries of some programmes • Demand for content is rising • Shooting continues in strict compliance with barrier measures • Book of order is up year-on-year in value terms • Newen takes a majority stake in the Spanish iZen
Slide 19: Adaptation of the pillars, solid digital brands (1/3)
ADAPTATION OF THE 3 PILLARS, RELYING ON THEIR SOLID DIGITAL BRANDS (1/3) PUBLISHERS: 5 strong brands with an increasing reach TRAFFIC X 3* MORE CONTENT MORE REACH MORE REACH MORE VOLUME versus 2019 on contents +14% sessions 40M GLOBAL FOOTPRINT +26% MORE TESTING, MORE AI PARTNERSHIP peak in spring 2
Slide 20: Adaptation of the pillars, solid digital brands (2/3)
ADAPTATION OF THE 3 PILLARS, RELYING ON THEIR SOLID DIGITAL BRANDS (2/3) BUSINESS SOLUTIONS : Back to expectations in Q4 KEY PARTNERSHIPS WITH: KEY PARTNERSHIPS WITH: GROWTH In Switzerland/Belgium RECOVERY In France in Q4 DEVELOPMENT IN EMEA Partnership with the Abou Dabi tourism office A STRONG G
Slide 21: Adaptation of the pillars, solid digital brands (3/3)
ADAPTATION OF THE 3 PILLARS, RELYING ON THEIR SOLID DIGITAL BRANDS (3/3) E-commerce 46 000 of sold 52 000 of sold boxes per month boxes per month 100 000 of sold +17% +12% boxes per month vs end 2019 vs end 2019 PARTNERING WITH MAJOR BRANDS January July June August Summer September September Novembe
Slide 22: Slight decline of advertising but higher e-commerce revenue
: SLIGHT DECLINE OF ADVERTISING BUT HIGHER E-COMMERCE REVENUE • Advertising revenue from direct media and programmatic was down slightly year-on-year • Higher revenue in France (especially from Marmiton) partially offset lower international revenues • E-commerce revenue (subscription box sales) was
Slide 23: Q1 2021: Financial results
3 Q1 2021: FINANCIAL RESULTS 23
Slide 24: Q1 2021 consolidated revenue
Q1 2021 CONSOLIDATED REVENUE (€M) Q1 2021 Q1 2020 CHG. M€ CHG. % Broadcasting 395.3 389.9 5.4 1.4% Advertising revenue 344.1 341.6 2.5 0.7% Other revenue 51.2 48.3 2.9 6.0% Studios & Entertainment 77.7 68.5 9.1 13.3% Production / sale of audiovisual rights 63.1 54.4 8.7 16.0% Revenue from games, mus
Slide 25: Broadcasting schedule costs
BROADCASTING SCHEDULE COSTS* €M Q1 2021 Q1 2020 CHG. M€ CHG. % TV dramas / TV movies / Series / Theatre (72.1) (70.5) (1.6) 2.3% Entertainment (63.4) (73.5) 10.1 -13.7% News (34.7) (35.8) 1.1 -3.1% Movies (25.1) (25.5) 0.4 -1.6% Sport (12.8) 0.2 (13.0) -6564.6% Kids (2.7) (3.0) 0.3 -10.0% Total (210
Slide 26: Current operating profit per segment (Q1 2021)
CURRENT OPERATING PROFIT PER SEGMENT (Q1 2021) €M Q1 2021 Q1 2020 CHG. M€ CHG. % Broadcasting 47.4 43.8 3.6 8.2% Margin 12.0% 11.2% - +0.8pt Studios & Entertainment 11.7 2.1 9.6 x5.5 Margin 15.0% 3.1% - +11,9pts Digital (Unify) (2.3) (3.9) 1.6 -41.5% Margin -6.2% -11.0% - +4.8pts Current operating p
Slide 27: Q1 2021 consolidated income statement
Q1 2021 CONSOLIDATED INCOME STATEMENT €M Q1 2021 Q1 2020 CHG. M€ CHG. % Consolidated revenue 509.8 493.9 15.9 3.2% Total broadcasting schedule costs (210.8) (208.2) (2.6) -1.2% Other charges, depreciation, amortization, provision (242.2) (243.7) 1.5 0.6% Current operating profit 56.8 42.0 14.8 35.2%
Slide 28: Trends in net cash position Q1 2021
TRENDS IN NET CASH POSITION Q1 2021 (EXCLUDING THE IMPACT OF IFRS 16*) 2021 Free cash-flow : 62.5 M€ €M 116.9 4.5 50.7 -5.3 1.6 -53.6 -12.7 -0.7 Opening net Operating Decrease Change in Net capital Acquisitions/disposals Salto, Shareholder Closing net debt debt cashflow** in lease operating expendit
Slide 29: 2021 and beyond: The Group is in a growth dynamic
4 2021 AND BEYOND: THE GROUP IS IN A GROWTH DYNAMIC with opportunities in both content and digital 29
Slide 30: Robust growth perspectives in a volatile macroeconomic environment
ROBUST GROWTH PERSPECTIVES IN A VOLATILE MACROECONOMIC ENVIRONMENT BROADCASTING STUDIOS & ENTERTAINMENT A rich, diverse line-up which points to a strong spring and summer 2021: INCREASED SHARE of the revenues coming from international clients as of 2021 EVENT INSPIRING NEW MINISERIES FAMILY SAGA NEW
Slide 31: Appendix
5 APPENDIX 31
Slide 32: 2020: Key results
2020: KEY RESULTS (€M) FY 2020 FY 2019** CHG. €M CHG. % TF1 group advertising revenue 1,483.3 1,651.1 (167.8) -10.2% Revenue from other activities 598.4 686.2 (87.8) -12.8% Broadcasting 1,612.8 1,774.2 (161.4) -9.1% o/w Advertising 1,414.9 1,567.4 (152.5) -9.7% Studios & Entertainment 309.2 390.0 (8
Slide 33: 2020: Cost of programmes
2020: COST OF PROGRAMMES (eM) FY 2020 FY 2019 CHG.EM CHE.% TV DRAMAS / TV MOVIES / SERIES / THEATRE (313.3) (331.8) (18.5) 5.6% ENTERTAINMENT (215.2) (271.4) (56.2) 20.7% MOVIES (133.1) (148.3) (15.2) -10.2% NEWS (130.2) (134.7) (4.5) 3.4% SPORTS (29.4) (87.4) (58.0) -66.4% KIDS (11.9) (11.8) 0.0 0.
Slide 34: FY 2020: Good cash position for 2021
FY 2020: GOOD CASH POSITION FOR 2021 (EXCLUDING THE IMPACT OF IFRS 16*) €M Free cash-flow: €171 million, illustrating TF1's ability to maintain a solid financial position and generate cash, even in times of crisis 103.0 372.9 -20.5 -284.6 -9.8 -35.4 -0.7 -126.3 Opening Operating Decrease in lease Ch
Slide 35: Investor relations contacts
Philippe DENERY – CFO IR team pdenery@tf1.fr comfi@tf1.fr Thomas CARDIEL – Head of Investor Relations TF1 tcardiel@tf1.fr 1 Quai du Point du Jour 92 656 Boulogne-Billancourt Cedex France Anaïs AMGHAR – Investor Relations https://www.groupe-tf1.fr/en aamghar@tf1.fr 35