Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — TF1 Group — 9M 2024 Earnings Presentation
45 slides from Television Francaise 1 Sa's earnings presentation, 2024
Slide 1: Investor Presentation Post Nine-Month 2024 Results
INVESTOR PRESENTATION POST NINE-MONTH 2024 RESULTS JT du 13h et du 20h
Slide 2: Disclaimer
DISCLAIMER This presentation contains rounded figures and contains forward-looking information and statements about the TF1 group. Forward-looking statements are statements that are not historical facts, and include, but are not limited to: financial projections, forecasts and estimates and their un
Slide 3: Agenda
1 WHO WE ARE STRATEGY UPDATE P.4 P.8 2 NINE-MONTH 2024 FINANCIALS SEGMENT DEEP DIVE P.16 P.22 3 EXTRA-FINANCIAL PERFORMANCE SHARE INFORMATION P.31 P.35 4 APPENDIX P.37 INVESTOR PRESENTATION 3
Slide 4: Who We Are
1 WHO WE ARE INVESTOR PRESENTATION 4 Bonjour! La Matinale de TF1
Slide 5: TF1 Group's History
TF1 GROUP’S HISTORY 1987 The Bouygues group becomes reference 2018 shareholder of the TF1 channel 2024 First distribution agreements signed with the French telecom operators Launch of TF1+ to become the leading free Acquisition of the aufeminin group streaming platform in France 2020 1991 First step
Slide 6: TF1 Group's Activities: Broadcasting, Streaming and Production
TF1 GROUP’S ACTIVITIES: BROADCASTING, STREAMING AND PRODUCTION MEDIA BROADCASTING, STREAMING, OTHER ACTIVITIES NEWEN STUDIOS CONTENT PRODUCTION & DISTRIBUTION 2023 revenue: €2bn 2023 revenue: €329m FTA DRAMA / CHANNELS SCRIPTED THEME CHANNELS DOCUMENTARIES ANIMATION STREAMING SERVICES DISTRIBUTION T
Slide 7: 9M Highlights
9M HIGHLIGHTS ADVERTISING REVENUE GROWTH GROWTH IN LINEAR CONTINUED STRONG IN LINEAR AND STREAMING ADVERTISING MOMENTUM FOR STABLE AUDIENCE SHARES Group advertising revenue Linear advertising revenue Digital advertising revenue despite France Televisions’ coverage of the Paris Olympics +4.5% +2.2% +
Slide 8: Strategy Update
2 STRATEGY UPDATE INVESTOR PRESENTATION 8 Plus belle la vie, encore plus belle
Slide 9: Ambition
ESTABLISH OURSELVES AS THE PRIMARY FREE-TO-AIR AMBITION DESTINATION ON THE TV SCREEN FOR NEWS AND FAMILY ENTERTAINMENT ON FRENCH-SPEAKING MARKETS INVESTOR PRESENTATION 9
Slide 10: Strategy
STRATEGY STRENGTHEN THE GROUP’S LEADERSHIP IN THE LINEAR ADVERTISING MARKET, through a premium content offering and a differentiating reach BECOME THE LEADING FREE STREAMING PLATFORM IN THE FRENCH-SPEAKING MARKETS, by leveraging the power of our editorial line and maximising the value of our digital
Slide 11: Market Momentum: A Strategic Opportunity
MARKET MOMENTUM: A STRATEGIC OPPORTUNITY VIDEO CONSUMPTION “ON-DEMAND” THE VIDEO ADVERTISING SHIFTS TO “ON-DEMAND” CONSUMPTION IS DRIVEN MARKET IS GROWING BY THE TV SCREEN STRONGLY IN FRANCE TV viewing time + long format video 1 Share of TV screen in on-demand long-format Video advertising market 3
Slide 12: Linear: Consolidate Our Market Share
LINEAR: CONSOLIDATE OUR MARKET SHARE A TV AD MARKET FLATTISH OVER TIME A GROWING MARKET SHARE FOR TF1 GROUP TF1’S €billion %, classic only MARKET SHARE €3.2BN 3.3 3.2 2.9 3.3 3.3 3.1 CLASSIC + SPONSORING GROWING IN A 45.9% 47.0% RESILIENT 2.8 CLASSIC ONLY MARKET 2017 2018 2019 2020 2021 2022 2023 20
Slide 13: Create the Leading Ad-Supported Free-to-View Streaming Platform
CREATE THE LEADING AD-SUPPORTED FREE-TO-VIEW STREAMING PLATFORM Streamed hours Ad CPM KPI Awareness Reach = Streamers x Usage Inventories 3x linear CPM GROW DIGITAL LINE-UP AD LOAD DATAISATION REVENUE MARKETING ACCESSIBILITY INNOVATIVE LEVERS TECH STACK ADVERTISING CAMPAIGNS UX/ FORMATS VISIBILITY I
Slide 14: Capitalize on a Solid Track Record
CAPITALIZE ON A SOLID TRACK RECORD SYNERGIES WITH MEDIA SEGMENT EXCITING PROJECTS AND PARTNERSHIPS Newen Studios supporting TF1’s digital acceleration Expertise in animation, drama and local strategy with entertainment recognized with successful the success launches calling for future partnerships o
Slide 15: Acquisition of 63% of Johnson Production Group
ACQUISITION OF 63% OF JOHNSON PRODUCTION GROUP1 • Strategic move enabling Newen Studios, which already owns Reel One2, to further strengthen its ambition in the dynamic and resilient TV Packaging, financing, production movie market and distribution • Romances Privileged, long-term access to the Nort
Slide 16: Nine-Month 2024 Financials
3 NINE-MONTH 2024 FINANCIALS INVESTOR PRESENTATION 16 JT du 13h
Slide 17: Consolidated Revenue
CONSOLIDATED REVENUE Advertising revenue in Q3 close to (€m) Q3 2024 Q3 2023 CHANGE 9M 2024 9M 2023 CHANGE 2023 level Linear ad revenue: MEDIA 415.6 445.2 (6.6%) 1 ,399.1 1 ,349.6 3.7% - Steady during the summer despite the Paris 2024 Olympic Games on FTV ADVERTISING REVENUE 345.2 350.8 (1.6%) 1,146
Slide 18: Current Operating Profit from Activities per Segment
CURRENT OPERATING PROFIT FROM ACTIVITIES PER SEGMENT (€m) Q3 2024 Q3 2023 CHANGE 9M 2024 9M 2023 CHANGE MEDIA COPA stable year-on-year, MEDIA 66.1 45.2 46.2% 191.0 191.4 (0.2%) benefiting in Q3 from: O/W PROGRAMMING COSTS (212.5) (225.0) (5.6%) (671.4) (628.9) 6.8% - Disposal of a brand license - De
Slide 19: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (€m) Q3 2024 Q3 2023 CHANGE 9M 2024 9M 2023 CHANGE CONSOLIDATED REVENUE 487.0 509.4 (4.4%) 1, 590.9 1 ,547.5 2.8% PROGRAMMING COSTS (212.5) (225.0) (5.6%) (671.4) (628.9) 6.8% OTHER CHARGES, DEPRECIATION, AMORTISATION AND PROVISIONS (205.4) (232.7) (11.7%) (721.6) (714.
Slide 20: Solid Net Cash Position at End-September 2024
SOLID NET CASH POSITION AT END-SEPTEMBER 2024 Free cash flow before changes in WCR €109.2 million 300.7 (8.4) 505.1 (183.1) (58.7) (72.1) 363.8 €m (119.7) Free cash flow after changes in WCR €50.5 million Opening net cash Operating Lease Net capital Change in Acquisitions Dividends, Closing net cash
Slide 21: Guidance Confirmed
GUIDANCE CONFIRMED Despite a more challenging economic environment for the rest of the year GROWTH IN DIGITAL BROADLY STABLE COPA MARGIN AIMING AT A GROWING DIVIDEND POLICY INVESTOR PRESENTATION 21
Slide 22: Segment Deep Dive
4 SEGMENT DEEP DIVE INVESTOR PRESENTATION 22 HPI
Slide 23: Media
MEDIA SEGMENT DEEP DIVE Koh-Lanta
Slide 24: Leadership Maintained on Commercial Targets Over Nine Months
LEADERSHIP MAINTAINED ON COMMERCIAL TARGETS OVER NINE MONTHS UNRIVALLED DAILY REACH SIGNIFICANT GAP WITH MAIN COMPETITOR 78% 33.0 W<50PDM +9.6 pts vs main competitor 53% 22.3 12.7 11.0 32% 4.4 4.0 3.5 3.4 2.5 2.4 2.1 1.9 0.4 0.4 18% TF1 M6 F2 TMC W9 F3 TFX TF1SF 6ter Gulli F5 LCI F.info -0.3 -0.6 -1
Slide 25: Solid Line-up in 2024, Performing Well in Linear and Streaming
SOLID LINE-UP IN 2024, PERFORMING WELL BOTH IN LINEAR AND IN STREAMING SOLID POSITION ON ALL DAY-PARTS VIRTUOUS LINEAR & STREAMING STRATEGY 25-49 Y/O LINEAR NON-LINEAR* Average audience share at end-September 2024 80% 20% +7 pts yoy 7:30pm 9:30am 1:40pm 2pm 6:45pm 8pm 9pm 11pm Daily soaps 55% 45% Un
Slide 26: Successful Launch of TF1+: On Track on All Building Blocks
SUCCESSFUL LAUNCH OF : ON TRACK ON ALL BUILDING BLOCKS H1 priority Current focus Awareness Visibility Consumption Ad Inventories CPM Streamed hours 3 Aided awareness First visibility 834m Ad load CPM +10% (Médiamétrie) 77% 1 for 54% 2 +53% (Site centric 4) 5min/hour €12/CPM Streamers 3 at end-May of
Slide 27: New Milestones Announced
NEW MILESTONES ANNOUNCED AGGREGATION STRATEGY EXPANSION IN FRENCH-SPEAKING COUNTRIES End June 2024 End 2024 June September ~18,000 hours 5 partnerships ~30,000 hours of content of content available at any time French speakers 8.1m 0.5m 2.2m Devices with 3.3m 0.1m 2.7m INVESTOR PRESENTATION 27
Slide 28: Newen Studios
NEWEN STUDIOS SEGMENT DEEP DIVE Marie-Antoinette
Slide 29: A Key European Player with a Multi-Genre Portfolio
A KEY EUROPEAN PLAYER WITH A MULTI-GENRE PORTFOLIO DRAMA Demain Nous Appartient Liaison Lost Luggage Funeral For A Dog Thin Blue Line Ammo Legacy DOCUMENTARY TV MOVIES ANIMATION NON-SCRIPTED REALITY Wagner, L'armée de All That Breathes The Territory Her Magical Les Mystérieuses Insiders l'ombre de P
Slide 30: Nine-Month Highlights
NINE-MONTH HIGHLIGHTS STRONG ASSETS TO BUILD THE FUTURE Revenue of €191.8m in 9M 2024, with activity mostly skewed to Q4; COPA of €6.9m KEY ACHIEVEMENTS Q3 DELIVERIES Q4 DELIVERIES Historical Strengthening synergies Closing of the acquisition of records for Newdaily soaps talents with Media segment
Slide 31: Extra-Financial Performance
EXTRA- 5 FINANCIAL PERFORMANCE INVESTOR PRESENTATION 31
Slide 32: Guiding Principles for Transformation
GUIDING PRINCIPLES FOR TRANSFORMATION STRONG ASSETS TO BUILD THE FUTURE RECOGNITION BY THE LEADING RATING AGENCIES (1) RANKED 1ST in Broadcasting & Advertising sector in Europe Wäldern AA RATING (1) Moody’s ESG Solutions : ranked #1 for the Broadcasting & Advertising Sector – October 2022 ; MSCI : A
Slide 33: Key Achievements
KEY ACHIEVEMENTS STRONG ASSETS TO BUILD THE FUTURE Wäldern H1INVESTOR PRESENTATION 2024 FINANCIAL RESULTS 33
Slide 34: Commitment to Reducing Carbon Emissions by 30% Within the 2030 Climate Roadmap
COMMITMENTS COMMITMENT TO REDUCING CARBON EMISSIONS BY 30% (1) WITHIN THE 2030 CLIMATE ROADMAP SCOPES 1 AND 2 SCOPE 3a -42 % -25 % TARGET VALIDATED BY SBTI En terre ferme (1) Compared to the emissions of 2021. INVESTOR PRESENTATION 34
Slide 35: Share Information
6 SHARE INFORMATION INVESTOR PRESENTATION 35 LCI
Slide 36: Share Ownership & Stock Market Information
SHARE OWNERSHIP & STOCK MARKET INFORMATION OWNERSHIP STRUCTURE* COVERAGE & RECOMMENDATIONS STOCK MARKET INFORMATION Quote: Euronext Paris 12% 9 ANALYSTS Market: Compartment A ISIN: FR0000054900 CFI: ESVUFN ICB: 403010 Media 46% 6/9 BUY Ticker: TFI 3/9 NEUTRAL Major Market Indexes: 31% • SBF 120 • CA
Slide 37: Appendix
7 APPENDIX INVESTOR PRESENTATION 37 JT du 20h
Slide 38: FY23 Consolidated Revenue
FY23 CONSOLIDATED REVENUE (€m) FY 2023 FY 2022 CHG.% MEDIA MEDIA 1 1,967.3 2,079.9 (5.4%) Advertising impacted by macro ADVERTISING REVENUE 2 1,606.4 1,668.9 (3.7%) in H1; up +1.7% in H2 O/W MYTF1 ADVERTISING REVENUE 3 104.5 90.3 15.7% Sustained double-digit annual growth for MYTF1 NON ADVERTISING M
Slide 39: FY23 Current Operating Profit from Activities per Segment
FY23 CURRENT OPERATING PROFIT FROM ACTIVITIES PER SEGMENT (€m) FY 2023 FY 2022 CHG.% MEDIA MEDIA 256.2 270.1 (5.1%) Stable FY margin: cost discipline and good advertising performance in H2 MARGIN 13.0% 13.0% +0.0 pt NEWEN STUDIOS 31.2 52.1 (40.1%) NEWEN STUDIOS Double-digit Q4 margin, MARGIN 9.5% 12
Slide 40: FY23 Consolidated Income Statement
FY23 CONSOLIDATED INCOME STATEMENT (€m) FY 2023 FY 2022 CHG.% CONSOLIDATED REVENUE 2,296.7 2,507.7 (8.4%) TOTAL COSTS OF PROGRAMMES (960.2) (987.0) (2.7%) OTHER CHARGES. AMORTIZATION. PROVISION (1,049.1) (1,198.5) (12.5%) CURRENT OPERATING PROFIT FROM ACTIVITIES 287.4 322.2 (10.8%) CURRENT OPERATING
Slide 41: Net Cash Position Evolution at End-December 2023
NET CASH POSITION EVOLUTION AT END-DECEMBER 2023 NET CASH POSITION Free Cash Flow before changes in WCR €178.1 million +€179.4m 502.4 year on year -26.5 136.2 -4.5 505.1 -299.0 -129.2 325.7 €m Free Cash Flow after changes in WCR €313.1 million Opening net cash Operating Lease Net capital Change in A
Slide 42: Growing Dividend Policy
GROWING DIVIDEND POLICY 2018-2023 EVOLUTION €0.55 (€/SHARE) CAGR +7% 8% DIVIDEND YIELD2 € 116.0m 1 €0.40 €0.45 €0.45 €0.50 € 0.552 PER SHARE €0.0 2018 2019 2020 2021 2022 2023 COVID 1 Based on 210,897,781 shares at 31/12/2023 2 Based on the closing price on 31/12/2023 (€7.14) INVESTOR PRESENTATION 4
Slide 43: Optimisation Plan
OPTIMISATION PLAN TARGETS SAVINGS €40m+ More than RATIONALE GRADUALLY REACH €40m+ OPERATIONAL COSTS SAVINGS BY 2025 55% Savings to originate mostly from secured at end- real estate, IT, procurement and June 2024 GENERATE organisation SAVINGS AND REALLOCATE RESOURCES REINVESTMENT TO BOOST OUR DIGITAL
Slide 44: Bonjour! La Matinale de TF1
Bonjour! La Matinale de TF1
Slide 45: Contact
CONTACT PIERRE-ALAIN GÉRARD – EVP FINANCE, STRATEGY & PROCUREMENT ADRIEN WIART– HEAD OF M&A, BUSINESS PLAN & INVESTOR RELATIONS STÉPHANE FEIST– HEAD OF INVESTOR RELATIONS sfeist@tf1.fr ANAÏS AMGHAR – SENIOR INVESTOR RELATIONS OFFICER aamghar@tf1.fr TF1 GROUP INVESTOR RELATIONS TEAM 1 Quai Du Point D