Rtl Group S.a. · LUXSE:RTLL
Rtl — Non-Deal Roadshow (October 2014)
25 slides from Rtl's roadshow presentation, Oct 1, 2014
Slide 1: The leading European Entertainment network – Scandinavia
The leading European Entertainment network Scandinavia 1 October 2014
Slide 2: RTL Group: a leader in its three strategic pillars
RTL Group : a leader in 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 53 TV channels and 28 radio stations 8,500 hours of programming;
Slide 3: Delivering on our strategic goals
Delivering on our strategic goals BROADCAST CONTENT DIGITAL ENHANCE BROADCAST CREATE MARKET- DRIVE DIGITAL PORTFOLIO LEADING CONTENT TRANSFORMATION Strengthen family ✔ Maintain ✔ Expand ✔ of channels leading position non-linear services Grow ✔ Rebalance ✔ Grow online ad ✔ non-ad business portfolio a
Slide 4: Managing RTL Group with a long-term focus…
Managing RTL Group with a long-term focus… Adaptable cost structure with tight cost control High-quality earnings and cash flow profile Efficient capital structure with full financial flexibility Attractive shareholder remuneration 4
Slide 5: … results in ability to invest and provide attractive cash returns …
… results in ability to invest and provide attractive cash returns … USE OF FINANCIAL HEADROOM 1.0 Investments to increase long-term shareholder value FINANCIAL HEADROOM Excess cash: extraordinary Net debt pay-outs to shareholders to EBITDA ORDINARY Illustrative view 50-75% pay-out policy DIVIDEND 0
Slide 6: Agenda
Agenda 1 22 3 Half-year Group Business Strategic 2014 highlights financials segments update 6
Slide 7: Half-year: Sound results in tough economic environment
1 2 3 5 Half–year : Sound results in tough economic environment 90% € 2,687 million Revenue Cash conversion rate € 2.00 dividend Interim extraordinary 19.3% EBITA Margin € 519 million Reported EBITA € 202 million Net profit 7
Slide 8: Agenda
Agenda 1 2 3 Half-year Group Business Strategic 2014 highlights financials segments update 8
Slide 9: Mediengruppe RTL Deutschland: Signs of audience recovery
1 2 3 Mediengruppe RTL Deutschland Signs of audience recovery but still down yoy FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %) 14 – 59 (in %) -1.4 +/-0 -0.3 +0.7 +1.1 -0.8 32.4 32.6 12.6 31.5 31.3 30.6 9.5 8.4 9.3 9.1 RTL 6.7 28.8 27.4 26.9 26.0 25.6 25.2 25.2 P7S1 RTL Sat 1 Pro 7 ZDF ARD Vox 24.6 P7
Slide 10: Groupe M6: Resilient audience; growth continues for 6ter
1 2 3 4 Groupe M6 Resilient audience; growth continues for 6ter FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) -0.6 -0.3 +0.1 -0.2 34.1 33.3 33.0 32.6 32.6 24.9 32.2 Groupe TF1 15.6 10.1 4.3 21.5 21.2 21.0 20.5 20.4 20.6 Groupe M6 TF1 France 2 France 3 M6
Slide 11: RTL Nederland: Good audience performance despite sports events
1 2 3 RTL Nederland Good audience performance despite sports events FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %) 20 – 49, Primetime (in %) 35.2 -0.2 +5.0 +0.3 -2.4 -0.2 33.5 19.0 32.9 RTL 18.0 32.3 31.7 31.4 8.9 29.1 5.4 5.4 27.8 27.3 28.3 25.3 25.3 RTL 4 Ned 1 SBS 6 Ned 3 RTL 5 26.8 24.0
Slide 12: FremantleMedia: Difficult first half year
1 2 3 4 FremantleMedia Difficult first half year KEY FINANCIALS REVENUE BRIDGE HY 2013 – HY 2014 (in € million) (in € million) REVENUE EBITA 63 59 666 666 19 47 20 7.1% ROS 4.7% 623 623 47 Negative New Shows not Volume Other FX shows renewed decreases on returning shows 29 HY 2013 HY 2014 HY 2013 HY
Slide 13: Agenda
Agenda 1 2 3 Half-year Group Business Strategic 2014 highlights financials segments update 13
Slide 14: Broadcast: Platform revenue continuing to grow
1 2 3 Broadcast Platform revenue continuing to grow Strong growth in HD ... ... with further potential RTL GROUP PLATFORM REVENUE HD SUBSCRIBERS, GERMANY (in € million) (in million) (in million households) 1 36.7 +16.3% +29.7% Analogue TV 7.7 100 4.8 3.7 4.2 HD Digital TV 24.2 TECHNICAL 86 POTENTIAL
Slide 15: Online video is at the heart of RTL Group's digital strategy
1 2 3 Digital Online video is at the heart of RTL Group’s digital strategy Strategic focus Strong growth Digital revenue increasing VIDEO VIEWS RTL GROUP RTL GROUP DIGITAL REVENUE Catch-up (in billion) (in € million) 1 VOD TV services +226% +10% 113 Web New content 15.7 2 originals production 4.8 10
Slide 16: Our MCN businesses show high growth
1 2 3 Digital Our MCN businesses show high growth … VIDEO VIEWS DEVELOPMENT (in billion) +123% +97% >200% 9.5 4.3 3.6 1.8 2.1 0.3 HY 2013 HY 2014 HY 2013 HY 2014 HY 2013 HY 2014 REVENUE 2.3x 2.6x 5.3x GROWTH #3 MCN Globally #1 Style #1 MCN Europe Source: Internal measurement Note : Stylehaul partici
Slide 17: Making RTL Group one of the worldwide leaders
1 2 3 Digital Making RTL Group one of the worldwide leaders Growing online video business Top 5 worldwide RTL Group online video views in billion 35.0 5.1x 16.8 6.9 2012 2013 2014e *ComScore Video Metrix, based on monthly average video views in H1/2014; excluding Asia and Russia, ad networks and ad
Slide 18: … and will be complemented by recent acquisition …
1 2 3 Digital … and will be complemented by recent acquisition … Build premium Build scale in Build new sales competencies non-linear web original with cornerstone investment in digital video services and short-form video programmatic advertising ✔ Continuing SpotXchange’s impressive growth path ✔ M
Slide 19: Partnering with SpotXchange in fast growing market
1 2 3 Digital Partnering with SpotXchange in fast growing market Global market for online video advertising In USD billion IMPROVE MONETISATION SKILLS 24.8 TV Content 3.1x 9.4 Traditional (long-form) Leading video ad Web original monetization content platform 8.1 Aggregation via 15.4 Programmatic Mu
Slide 20: Ranked in top 5 video ad properties in the US
1 2 3 Digital Ranked in top 5 video ad properties in the US ComScore US online video advertising ranking Q1/2014 Average monthly video ad views In billion ad views Acquired by RTL Group in July 2014 #4 3.3 3.1 3.0 2.7 2.7 Acquired by Facebook in June 2014 Acquired by AOL in August 2013 1 2 3 4 5 Acq
Slide 21: Non-linear/OTT will be automated first, others to follow
1 2 3 Digital Non-linear/OTT will be automated first, others to follow ADOPTION OF PROGRAMMATIC OTT DISTRIBUTION MANAGED PLATFORM Web native, Web native, Broadcast Broadcast Linear Linear non - VOD originals short-form long-form VOD Web TV TV professional Non-linear Non-linear Non-linear Non-linear
Slide 22: Priorities for 2014 and beyond
1 2 3 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 22
Slide 23: The leading European Entertainment network – Scandinavia
The leading European Entertainment network Scandinavia 23 October 2014
Slide 24: SpotXchange: billions of transactions for brands & publishers
SpotXchange : billions of transactions for brands & publishers Ad impressions managed by SpotXchange Integrated with the most buying Monthly average in billion Working with more than half of partners (demand sources) in industry ComScore’s top 100 publishers 3+ billion 1,000+ brand name advertisers
Slide 25: Growth potential in Germany as print loses share
Growth potential in Germany as print loses share TV’S AD SHARE IN MEDIA MIX 2013 45% In % of total ad spend 38% +1pp 30% Growth 27% 25% potential 23% GER NED UK FRA ESP USA Print ad share 40% 31% 20% 23% 22% 22% Print ad share -3pp -6pp -4pp -4pp -2pp -4pp development Source: Screen Digest 2013; dev