Rtl Group S.a. · LUXSE:RTLL
Rtl — JPM London, June 2014
35 slides from Rtl's conference presentation, June 2014
Slide 1: The leading European Entertainment network
The leading European Entertainment network JPM, London, June 2014 1
Slide 2: Agenda
Agenda 1 22 3 Quarter 1 2014 Business Group highlights segments Strategy 2
Slide 3: RTL Group with a good start into 2014: Q1 highlights
1 2 3 5 RTL Group with a good start into 2014 : Q1 highlights € 1,313 million Revenue 112 % Cash conversion rate 14.8% EBITA Margin € 194 million Reported EBITA continuing operations € 92 million Net profit 3
Slide 4: Agenda
Agenda 1 2 3 Quarter 1 2014 Business Group highlights Segments Strategy 4
Slide 5: Mediengruppe RTL Deutschland: Stabilising audience share
1 2 3 5 Mediengruppe RTL Deutschland Stabilising audience share FAMILY OF CHANNELS BY CHANNEL 14 – 59 (in %) 14 – 59 (in %) -1.0 +0.1 +0.1 -0.3 0.1 -0.8 32.6 13.7 32.4 31.5 31.3 9.6 30.6 30.3 8.5 8.5 8.2 30.1 6.8 RTL 27.4 26.9 26.0 25.5 25.8 25.2 25.2 RTL Sat 1 Pro 7 ZDF ARD Vox P7S1 -0.2 -0.1 -0.1
Slide 6: Groupe M6: Audience share performance
1 2 3 5 Groupe M6 Audience share performance FAMILY OF CHANNELS BY CHANNEL Housewives <50, all day (in %) Housewives <50 all day (in %) -0.1 -1.0 +/-0 -0.1 34.1 33.3 33.0 32.6 32.2 32.0 32.1 Groupe 24.2 TF1 15.6 9.9 4.4 21.5 21.2 21.0 20.9 20.5 20.4 20.5 Groupe M6 TF1 France 2 France 3 M6 -0.5 +0.9
Slide 7: RTL Nederland: Strong audience share development
1 2 3 5 RTL Nederland Strong audience share development FAMILY OF CHANNELS BY CHANNEL 20 – 49, Primetime (in %) 20 – 49, Primetime (in %) 35.2 +0.5 +1.5 +1.1 -2.8 +0.5 33.5 33.6 19.7 32.9 33.0 RTL 32.3 16.4 31.7 9.4 29.1 5.6 5.5 27.3 26.8 28.3 25.3 25.3 25.2 RTL 4 Ned 1 SBS 6 Ned 3 RTL 5 26.8 24.0 P
Slide 8: FremantleMedia: Higher revenue and stable EBITA
1 2 3 5 FremantleMedia Higher revenue and stable EBITA KEY FINANCIALS REVENUE BRIDGE 2013 – 2014 (in € million) (in € million) REVENUE EBITA 29 (22) 313 301 (7) 12 313 3.3% ROS 2.9% 301 FX European North Asia, LatAM impact production America & Other & Licensing 10 9 2013 2014 2013 2014 2013 2014 8
Slide 9: Agenda
Agenda 1 22 3 Quarter 1 2014 Business Group highlights segments Strategy 9
Slide 10: RTL Group's three strategic pillars
1 2 3 RTL Group’s three strategic pillars BEST IN BROADCAST BEST IN CONTENT BEST IN DIGITAL #1 or #2 in 8 European countries Leading global TV entertainment Leading European media company Leading broadcaster: content producer in online video 54 TV channels and 27 radio stations 8,500 hours of progra
Slide 11: Enhanced broadcast portfolio
1 2 3 Enhanced broadcast portfolio…. BROADCAST Newly launched channels growing above expectations Strengthen family of channels ✔ Retransmission fees have become significant profit contributors in Germany, Grow France, Netherlands, Belgium and Hungary non-ad business ✔ #1 or #2 in 8 European countri
Slide 12: …with growth potential in core market…
1 2 3 …with growth potential in core market… 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; develop
Slide 13: …while HD provides an additional revenue opportunity
1 2 3 …while HD provides an additional revenue opportunity MG RTL DEUTSCHLAND HD SUBSCRIBERS HD POTENTIAL IN GERMANY In million In million households +3.5m +3.9m 36.7 Analogue TV 8.3 4.6 4.2 Digital TV HD 2.8 24.2 TECHNICAL POTENTIAL 0.7 HD Subs 4.2 2011 2012 2013 Q1 2014 2013 Source: according to p
Slide 14: Growing family of channels to counter fragmentation
1 2 3 Growing family of channels to counter fragmentation Successful launches 2012 - 2013 Launches in 2014 Germany PAY GER ✔ Launched 8 May 2014 FR ✔ Premium documentary channel Croatia FTA NL ✔ Launched 11 January 2014 HU ✔ Kids : viewers aged 4 to 14, 20.6%* *Cumulated result for Q1 2014, 07.00-20
Slide 15: With geographic expansion into Asia
1 2 3 With geographic expansion into Asia Partnership Malaysia ✔ #1 in Europe #1 in the US Singapore ✔ Philippines ✔ Launched in September 2013 Launched in March 2014 Thailand ✔ Family entertainment targeting Male-skewed entertainment basic pay-TV around action, sports and reality Indonesia ✔ 15
Slide 16: Broadcast Priorities for 2014 and beyond
1 2 3 Broadcast Priorities for 2014 and beyond 1 Invest in top content 2 Grow new channels 3 Expand footprint in high growth markets 4 Grow second revenue stream 16
Slide 17: RTL Group's three strategic pillars
1 2 3 RTL Group’s three strategic pillars BEST IN BROADCAST BEST IN CONTENT BEST IN DIGITAL #1 or #2 in 8 European countries Leading global TV entertainment Leading European media company content producer in online video Leading broadcaster: 54 TV channels and 27 radio stations 8,500 hours of progra
Slide 18: Create market-leading content
1 2 3 Create market-leading content CONTENT CONTENT Resizing of resources concluded Initiatives to drive format development in place Maintain leading position ✔ Acquisitions to strengthen drama production and local entertainment Rebalance portfolio ✔ #1 global TV entertainment content producer Growt
Slide 19: Acquisitions strengthen scripted and local entertainment
1 2 3 Acquisitions strengthen scripted and local entertainment Miso Film 495 Productions Acquisition of 51% stake in November 2013 Acquisition of 75% stake in March 2014 Danish independent production US production company company focused on high end focused on reality series prime-time TV series and
Slide 20: Content Priorities for 2014 and beyond
1 2 3 Content Priorities for 2014 and beyond 1 Maintain core business 2 Diversify portfolio 3 Grow and develop the network 4 Build a scalable digital business 20
Slide 21: RTL Group's three strategic pillars
1 2 3 RTL Group’s three strategic pillars BEST IN BROADCAST BEST IN CONTENT BEST IN DIGITAL #1 or #2 in 8 European countries Leading global TV entertainment Leading European media company Leading broadcaster: content producer in online video 54 TV channels and 27 radio stations 8,500+ hours of progr
Slide 22: Driving digital transformation
1 2 3 Driving digital transformation DIGITAL DIGITAL Increase of total online revenues +26% YoY* € 236m Online revenues Online video advertising revenues +31% YoY in 2013 Grow online ad and non-ad business ✔ Europe’s #1 media company in online video Expand Generating 2.2bn monthly video views** non-
Slide 23: Online video is at the heart of RTL Group's digital strategy
1 2 3 Online video is at the heart of RTL Group’s digital strategy Strategic focus Strong growth Top 10 global player* VIDEO VIEWS RTL GROUP # COMPANY Catch-up Full year (in billion) 1 Google / YouTube 1 VOD TV services 2 Facebook +143% +216% +335% 3 AOL (including Adap.TV) 4 VEVO 30.0 5 DAILYMOTION
Slide 24: Other players increasing their presence in the MCN space
1 2 3 Other players increasing their presence in the MCN space o Disney - acquired Maker Studios for USD 500m plus USD 450m earn-out (Mar ‘14) Recent investments o ProSiebenSat.1 - acquired 20% stake in Collective Digital Studio (Mar’ 14) by major media o Endemol - announced USD 40m investment in a
Slide 25: RTL Group is already a leading MCN player with BroadbandTV
1 2 3 RTL Group is already a leading MCN player with BroadbandTV… 18 THOUSAND+ 200 MILLION+ #3 MCN Channels Channel subscribers On YouTube worldwide VIDEO VIEWS OF BROADBANDTV In billion 1 +150% 11.0 2 3 4.4 4 2012 2013 5 Full-year view, RTL Group investment in June 2013 Ranking by unique viewers, e
Slide 26: …with an ambition to become a leading global player
1 2 3 …with an ambition to become a leading global player 1 2 3 Strengthen monetisation Acquire scale and technology Develop quality of content and develop strategically capabilities in “horizontal” and depth in key verticals important value-chain MCNs components o Ad sales and brand ✔ ✔ integration
Slide 27: TV broadcasters focus on premium online video
1 2 3 TV broadcasters focus on premium online video… IN-STREAM INVENTORY PYRAMID CPM Sell-out ratio People and campaign driven estimates US Ø estimates o Advertisers value premium inventory for HIGH $25-35 75-100% branding PREMIUM o Price premium is paid for quality environment and guaranteed placem
Slide 28: …in an online video market that is growing fast
1 2 3 …in an online video market that is growing fast US video ad revenue in 2013* (net) Est. total market growth (net) 36% 35% HIGH PREMIUM Hulu 13% Rest Price MID-PREMIUM 33% US France $4bn 55% LOW-PREMIUM 27% 25% Youtube * Estimates based on SNL and REMNANT eMarketer figures Germany Netherlands V
Slide 29: New form of online ad sales: programmatic
1 2 3 New form of online ad sales : programmatic TRADITIONAL NEW - programmatic TRADITIONAL DIRECT SALES PROGRAMMATIC SALES • Pre-negotiated prices • Buying of individual impressions • Package sales • Pricing via auction model (RTB) • Manual booking • Traded and delivered in real-time Guaranteed pla
Slide 30: Programmatic is increasing, but from a small base
1 2 3 Programmatic is increasing, but from a small base Global programmatic share of online video advertising market In-Stream and in page video In USD billion CAGR +24% 24.8 2014 - 18 20.4 +10% 16.9 9.4 13.5 Online 8.9 CAGR 34% video (14-18) 10.5 26% 8.4 (In USD bn) 18% 15.4 7.5 GERMANY 0.4 40% 11.
Slide 31: Non-premium inventory sold programmatically (USA)
1 2 3 Non-premium inventory sold programmatically (USA) ComScore top video ad properties by ad videos served in Q4 2013 US only, average per month, in million +650% +97% +112% +43% +316% +140% Q4 2013 -7% +23% +154% -16% YoY % Low CPM High CPM 4,111 Low sell-out High sell-out 3,599 3,048 2,581 2,383
Slide 32: Non-linear/OTT will be automated first, others to follow
1 2 3 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 Linear •
Slide 33: Digital 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 33
Slide 34: 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
Slide 35: The leading European Entertainment network
The leading European Entertainment network JPM, London, June 2014 35