Slide 1: Presentation of 2023 Annual Results
PRESENTATION OF 2023 ANNUAL RESULTS
Slide 2: Disclaimer
DISCLAIMER Statements contained in this document, particularly those concerning forecasts on future M6 Group performance, are forward-looking statements that are potentially subject to various risks and uncertainties. Any reference to M6 Group past performance should not be interpreted as an indicat
Slide 3: Contents
1 CONTENTS INTRODUCTION 2 OPERATIONS 3 2023 PERFORMANCE 4 FINANCIAL STATEMENTS 5 STREAMING PLAN 2024-2028 6 OUTLOOK 3
Slide 4: Introduction
1 INTRODUCTION 4
Slide 5: Key Figures: A strong year
1 INTRODUCTION KEY FIGURES A strong year 20.5% 8.3 M audience share among 25-49 year olds Leading cinema Fastest growing admissions group year-on-year on commercial group in the commercial target radio 5
Slide 6: Highlights
1 INTRODUCTION 2023 A busy sporting year HIGHLIGHTS UNCERTAIN CHANGES TO THE ECONOMIC DESPITE THE DECLINE DIVERSIFICATION ENVIRONMENT IMPACTING IN TV ADVERTISING REVENUE, PORTFOLIO THE TV ADVERTISING PROFITABILITY MAINTAINED OVER THE YEAR MARKET WITH A 22.9% MARGIN FROM RECURRING OPERATIONS Transact
Slide 7: Profitability maintained with a 22.9% margin from recurring operations
1 INTRODUCTION Despite the decline in TV advertising revenue within a KEY FIGURES (€ M) weaker macro-economic environment, profitability maintained with a 22.9% margin from recurring 2022 2023 operations -0.7%(1) 1,356.9 -1.5% 1,330.8(3) 1,315.6 -0.6% 1,083.6 1,067.0 1,020.6 1,014.9 -10.6% 336.2 +42
Slide 8: Operations
2 OPERATIONS 8
Slide 9: Television Video
2 OPERATIONS TELEVISION VIDEO 9
Slide 10: Total hours viewed in 2023
2 OPERATIONS TOTAL HOURS VIEWED IN 2023 8.9 Bn 9.4 Bn Linear hours viewed in 2023, including: 0.5 Bn Non-linear Source: Mediamétrie – TV ratings across 4 screens (channels) – not including viewing of 6play exclusive programmes 10
Slide 11: Linear Television Audience Ratings
2 OPERATIONS LINEAR TELEVISION AUDIENCE RATINGS 11
Slide 12: TV remains the most popular format in a changing video environment
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS WITHIN A VIDEO ENVIRONMENT TV still accounts for the majority of video THAT IS CONTINUING TO CHANGE, content viewed, including among the under 50s TV REMAINS THE MOST POPULAR FORMAT Television viewing time is Almost ¾ of people watch TV Most video co
Slide 13: 2nd largest group on the commercial target
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS 2ND LARGEST GROUP ON Fastest growing group on the commercial target year-on-year THE COMMERCIAL TARGET 2022 2023 4+ 25-49 28,6 30,6 28,7 30,5 26,9 20,5 26,6 20,3 13,0 15,0 13,5 15,3 7,7 7,4 7,2 7,5 Source: Médiamétrie / Médiamat – Base Total audience
Slide 14: Popular primetime shows that attract all audiences on M6
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS ON M6, POPULAR PRIMETIME SHOWS THAT ATTRACT ALL AUDIENCES ENTERTAINMENT Up to 5.8M Success of longstanding brands SPORT Popular events viewers for the & continued success of new brands England – Fiji quarter final Most watched 2nd most viewed series
Slide 15: A great year for our DTT and pay channels
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS A GREAT YEAR FOR OUR DTT AND PAY CHANNELS, WHICH ARE BOOSTING THE GROUP’S FIREPOWER 4,7 4,5 3,7 3,5 7.6% audience share 3,3 3,2 3,0 2022 2023 2,7 2,7 2,7 2,4 2,4 2,3 2,2 2,1 2,1 2,0 1,9 2,0 1,8 1,7 1,8 1,6 1,7 1,7 on the commercial target for our 1,5
Slide 16: A great year for our DTT and pay channels
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS A GREAT YEAR FOR OUR DTT AND PAY CHANNELS, WHICH ARE BOOSTING THE GROUP’S FIREPOWER 4,7 4,5 3,7 3,5 7.6% audience share 3,3 3,2 3,0 2022 2023 2,7 2,7 2,7 2,4 2,4 2,3 2,2 2,1 2,1 2,0 1,9 2,0 1,8 1,7 1,8 1,6 1,7 1,7 On the commercial target for our 1,5
Slide 17: A great year for our DTT and pay channels
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS A GREAT YEAR FOR OUR DTT AND PAY CHANNELS, WHICH ARE BOOSTING THE GROUP’S FIREPOWER 4,7 4,5 3,7 3,5 7.6% audience share 3,3 3,2 3,0 2022 2023 2,7 2,7 2,7 2,4 2,4 2,3 2,2 2,1 2,1 2,0 1,9 2,0 1,8 1,7 1,8 1,6 1,7 1,7 On the commercial target for our 1,5
Slide 18: A great year for our DTT and pay channels
2 OPERATIONS • LINEAR TELEVISION AUDIENCE RATINGS A GREAT YEAR FOR OUR DTT AND PAY CHANNELS, WHICH ARE BOOSTING THE GROUP’S FIREPOWER CABSAT Best year ever Best year since start of Best year in 4 0.6% 4+ / 0.7% 25-49 annual measurements years for 25-49 0.3% 4+ CE / +15% year-on-year year olds 0.3% 1
Slide 19: Non-Linear Audience Ratings
2 OPERATIONS NON-LINEAR AUDIENCE RATINGS 19
Slide 20: 6play posted records in 2023 and confirmed its appeal to young people
2 OPERATIONS • NON-LINEAR AUDIENCE RATINGS POSTED RECORDS IN 2023 AND CONFIRMED ITS APPEAL TO YOUNG PEOPLE Operational and financial Records with the under An encouraging end indicators 35s to 2023 Streaming revenue* 1/3 €74 M of users RECORD are under 35 FOR 6PLAY for 518 M hours viewed 53 mins/day
Slide 21: Radio Audience Ratings
x 2 OPERATIONS RADIO AUDIENCE RATINGS 21
Slide 22: Radio market in France
2 OPERATIONS • RADIO AUDIENCE RATINGS RADIO MARKET IN FRANCE RADIO CONTINUES TO DOMINATE THE AUDIO SECTOR IN FRANCE 39.1 M daily listeners (-1% vs 2022) 160 mins listening on average (+3mins) Radio accounts for 58% of the audio market in France Source: Médiamétrie, EAR > National, Monday-Friday, Tot
Slide 23: M6 radio division remains the leading commercial radio group
2 OPERATIONS • RADIO AUDIENCE RATINGS M6 RADIO DIVISION REMAINS THE LEADING COMMERCIAL RADIO GROUP SUCCESS OF M6 GROUP MORNING SHOWS OVER FY 2023 No.1 commercial show in the morning More than 2.9 M daily listeners for Yves Calvi and Amandine Bégot’s breakfast show Only music-based breakfast show for
Slide 24: M6 radio division podcasts
2 OPERATIONS • RADIO AUDIENCE RATINGS M6 RADIO DIVISION PODCASTS ARE PLAYED EACH MONTH BY 39% OF LISTENERS RTL No.1 commercial podcast publisher in France with No.1 Podcast in France 29.5 million listens with 14.3 million listens 41 654 000 6 RTL podcasts 29 470 000 in the TOP 30 27 047 000 eStat Po
Slide 25: Advertising Market
2 OPERATIONS ADVERTISING MARKET 25
Slide 26: Decline in TV advertising market; radio posted growth
2 OPERATIONS • ADVERTISING MARKET DECLINE IN TV ADVERTISING MARKET IN A WEAKER ECONOMIC ENVIRONMENT RADIO POSTED YEAR-ON-YEAR GROWTH M6 Group net advertising TV OTHER OPERATIONS revenue (€ M) 1,083.6 1,067.0 925.1 905.0 162.0 158.5 2022 2023 2022 2023 2022 2023 26
Slide 27: 2023 Performance
13 al 2023 B® PERFORMANCE
Slide 28: TV: operating margin of 22.5%
3 2023 PERFORMANCE TV: OPERATING MARGIN OF 22.5% Decline in TV advertising Revenue EBITA revenues (€ M) (€ M) In a weaker macro-economic environment 1,069.7 1,044.5 265.0 Programming costs: 235.2 €502.6 m (stable) 2022 2023 Rise in technical and Margin from recurring operations commercial costs for
Slide 29: Radio: a dynamic advertising market
3 2023 PERFORMANCE RADIO: A DYNAMIC ADVERTISING MARKET Revenue EBITA (€ M) (€ M) 164.9 41.0 Increase in 157.6 advertising revenues 34.1 Stable costs 2022 2023 Margin from recurring operations 21.7% 24.9% 2022 2023 29
Slide 30: Production & Audiovisual Rights: strong cinema and rights transfer activities
3 2023 PERFORMANCE PRODUCTION & AUDIOVISUAL RIGHTS: STRONG CINEMA AND RIGHTS TRANSFER ACTIVITIES 8.3 M Revenue EBITA admissions in (€ M) (€ M) France vs. 6.2 M in 2022 67.6 56.2 13.4 10.5 Success of film sales in 2022 2023 France and internationally Margin from recurring operations 2022 2023 23.8% 1
Slide 31: Diversification: decline in activity
3 2023 PERFORMANCE DIVERSIFICATION: DECLINE IN ACTIVITY REFLECTING THE DECONSOLIDATION OF BEST OF TV AND A CONTRACTING PROPERTY MARKET Deconsolidated operations Revenue EBITA (€ M) (€ M) Revenue impact of scope effect: 72.3 21.2 €29.1 M 15.8 Disposed of on 37.7 30/09/2023 46.2* 2022 2023 Continuing
Slide 32: Equity-accounted entities
3 2023 PERFORMANCE EQUITY-ACCOUNTED ENTITIES Main equity- % held Nature of Share of profit accounted operations entities of joint ventures and associates (€ M) Tech Continued investment 50.0% streaming in Tech 8.3 • Cessation of activity (70.7) • Liquidation fully SVOD 33.3% provided for at 2022 202
Slide 33: Portfolio of non-consolidated assets a source of value for M6 Group
3 2023 PERFORMANCE PORTFOLIO OF NON-CONSOLIDATED ASSETS A SOURCE OF VALUE FOR M6 GROUP STREAMING DIGITAL MARKETING OTHER OPERATIONS Nature of Cashback & Bank comparison Event Tech streaming Going paperless Online furniture operations Couponing site management % ownership 50% owned 31.5% held 50% hel
Slide 34: Financial Statements
4 FINANCIAL STATEMENTS 34
Slide 35: Condensed consolidated statement of comprehensive income
4 FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2023/2022 M6 Group 31 December 2023 31 December 2022 change (€ M) Revenue 1,315.6 1,356.9 (41.3) Other operating revenues 12.0 18.8 (6.8) Total operating revenues 1,327.6 1,375.6 (48.0) Materials and other operating expe
Slide 36: Condensed balance sheet
4 FINANCIAL STATEMENTS CONDENSED BALANCE SHEET 2023 / 2022 change M6 Group 31 December 2023 31 December 2022 (€ M) Goodwill 287.9 299.3 (11.4) Non-current assets 593.5 588.6 4.9 Current assets 724.9 724.4 0.5 Cash and cash equivalents 443.9 374.8 69.1 TOTAL ASSETS 2,050.3 1,987.2 63.1 Equity - Group
Slide 37: Cash flow statement
4 FINANCIAL STATEMENTS CASH FLOW STATEMENT 2023 / 2022 M6 Group 31 December 2023 31 December 2022 change (€ M) Self-financing capacity from operations 407.0 422.0 (15.1) Operating WCR movements (22.1) (35.4) 13.3 Income tax (78.2) (90.5) 12.3 Cash flow from operating activities 306.7 296.2 10.5 Cash
Slide 38: CSR & Ethics
4 FINANCIAL STATEMENTS With female representation on management bodies at 47% (+4 pp vs 2022), the Group was ranked CSR & ETHICS 30th in the Awards for female representation in the management bodies of SBF120 companies (+18 pp since 2018) CSR & ETHICS NEWS IN 2023 56% of TV news presenters 20% are f
Slide 39: Proposed dividend of €1.25 per share
4 FINANCIAL STATEMENTS PROPOSED DIVIDEND OF €1.25 PER SHARE 45% 39
Slide 40: Streaming Plan 2024-2028
5 STREAMING PLAN 2024-2028 40
Slide 41: M6, a pioneer in TV digitalisation
5 STREAMING PLAN 2024-2028 M6, A PIONEER IN TV DIGITALISATION M6 Publicité partners with Launch of M6 – 1st catch-up operator Sirdata and becomes the 1st TV 1st channel to introduce mandatory login sales house to offer targeting to create a catch-up and a data offer (smart6tem) of purchasers and pot
Slide 42: 6play, a powerful platform
5 STREAMING PLAN 2024-2028 6PLAY, A POWERFUL PLATFORM Growth in audiences for our long-running entertainment programmes 16.6 M monthly users on average in 2023 1/3 of users are under 35 66% live audience 73% live audience 77% live audience 34% 27% 23% catch-up audience catch-up audience catch-up aud
Slide 43: Ramping up our streaming strategy
5 STREAMING PLAN 2024-2028 RAMPING UP OUR WITHIN A STABLE LINEAR MARKET, THE GROUP WILL CAPTURE THE GROWTH OF THE AVOD MARKET STREAMING STRATEGY …But streaming offers growth Linear remains the opportunities for the Group cornerstone of the TV division… TV is the advertising market segment that has b
Slide 44: Rationale for development in streaming
5 STREAMING PLAN 2024-2028 RAMPING UP OUR RATIONALE FOR DEVELOPMENT IN STREAMING STREAMING STRATEGY Better distribution of Group content 1 Optimisation of the Group’s programming and overall programming cost Virtuous circle creating value and consolidating the Group’s linear activities Audience Mone
Slide 45: Streaming is a consolidation lever for linear and a growth driver
5 STREAMING PLAN 2024-2028 RAMPING UP OUR STREAMING IS A CONSOLIDATION LEVER FOR LINEAR AND A GROWTH DRIVER STREAMING STRATEGY Better distribution of An additional injection Higher monetisation content of coverage opportunities Optimisation of programming thanks to the use of costs thanks to an addi
Slide 46: The Group's 2028 streaming ambitions
5 STREAMING PLAN 2024-2028 RAMPING UP OUR THE GROUP’S 2028 STREAMING AMBITIONS STREAMING STRATEGY FREE Popular content accessible free of charge ANYWHERE Expanded distribution with the development of OTT TV LAUNCH OF OUR NEW 6Play MAX, an enhanced experience subscription service to STREAMING HYBRID
Slide 47: The Group's streaming ambitions
5 STREAMING PLAN 2024-2028 RAMPING UP OF OUR THE GROUP’S 2028 STREAMING AMBITIONS STREAMING STRATEGY Total viewing Streaming Growth in annual OPEX (in hrs) revenues* +€10M +€10M 1Bn €200 M +€40M (vs. 518 M in 2023) (vs. €74 M in 2023) +€100 M +€40M x2 x3 2024 2025 2026 2027 Break even From 2027 47 *
Slide 48: Outlook
6 OUTLOOK 48
Slide 49: 2024 Targets
6 OUTLOOK 2024 TARGETS Implement the Find new growth Prepare for the 2024-2028 plan Continue to invest drivers for our submission for a to ramp up in content diversification new authorization to streaming production division use our channels’ DTT licences, which expire in 2025 Meeting 06/03/24 49
Slide 50: Questions & Answers
QUESTIONS & ANSWERS 50