Television Francaise 1 Sa · EURONEXT:TFI

Television Francaise 1 Sa — TF1 Group — Q3 2016 Earnings Presentation

39 slides from Television Francaise 1 Sa's earnings presentation, 2016

  1. Slide 1: Investor Presentation Post Q3 2016 Results

    INVESTOR PRESENTATION Post Q3 2016 Results 1

  2. Slide 2: Forward-looking statements

    This presentation contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof. All forward-looking statements are TF1 management’s p

  3. Slide 3: TF1 Group activities and organisation

    TF1 Group activities and organisation BROADCAST STUDIOS & ENTERTAINMENT OTHER PLATFORMS & FREE PLATFORMS RELATED ACTIVITIES * REAL ESTATE - DS *Owned at 50% 3

  4. Slide 4: TV consumption remains at a high level

    TV consumption remains at a high level Evolution of TV consumption (linear & IPTV) between 2000 and the first nine months 2016 Individuals aged 4+: 3h40, i.e. + 1’ vs. 9M 2015 Women<50 PDM*: 3h36, i.e. + 3’ vs. 9M 2015 3h56 3h58 3h49 3h39 3h40 3h42 3h41 3h44 3h36 3h34 3h40 3h32 3h47 3h50 3h28 3h46 3

  5. Slide 5: TV reception modes in France

    TV reception modes in France EVOLUTION OF RECEPTION MODES AS A % OF HOUSEHOLDS (Main reception mode as a % of households equipped with TV) 70% 69% 66% 67% 67% 67% 64% 60% 60% 59% 57% 56% DTT reception 50% HD DTT reception 45% 46% 44% ADSL/fibre reception 40% 45% 47% 44% 40% 30% 36% 22% 28% 15% 15% 1

  6. Slide 6: TF1 Group: large leader on commercial targets

    TF1 Group: large leader on commercial targets TF1 Group market share from January to September 2016 (%) LCI: exclude the results of the pay channel Source: Médiamétrie – Médiamat – January-September 2016 (versus same period in 2015) 6

  7. Slide 7: Share of viewing among W<50PDM - January to September 2016

    Share of viewing among W<50PDM - from January to September 2016 Market share from January to September 2016 vs the same period in 2015 (%) -1,2 +1,0 -1,1 = = = -0,1 +0,3 = +0,3 +0,4 +0,1 +0,1 +0,1 -0,7 +0,1 +0,2 +0,1 = -0,1 +0,3 +0,1 +0,1 +0,2 22,3 16,2 8,8 4,0 4,0 3,8 3,4 3,4 2,6 2,3 2,2 2,0 2,0 1,

  8. Slide 8: Group audience ratings improving since September

    Group audience ratings improving since September Evolution of market share for the TF1 Group (%) January-October 2016 (W<50PDM) Average Jan - Oct: 31.6 January February March April May June July August September October LCI: exclude the results of the pay channel Source: Médiamétrie – Médiamat – Jan

  9. Slide 9: The new positioning of the TF1 Group DTT channels

    The new positioning of the TF1 Group DTT channels Synthesis of the targeted positioning for TMC Evolution of the positioning of TF1 Group / NT1 / HD1 free-to-air channels W<50PDM Commercial Ind. 25-49 W<50PDM + target Ind. 25-49 Editorial Women A+ Series, movies Flavour 20-40 • More A+ Evolution of

  10. Slide 10: TF1 Group DTT channels: large leadership

    TF1 Group DTT channels: large leadership Market share from January to September 2016 vs same period in 2015 (%) Ind. aged 4 and over Ind. 25-49 W<50PDM +0,3 +0,1 +0,1 +0,5 +0,3 +0,3 +0,7 +0,2 +0,3 +0,1 +0,3 +0,4 +0,4 +0,2 = +0,3 +0,2 +0,3 9,1 7,7 6,6 6,8 5,7 6,1 6,1 5,6 4,7 3,9 3,9 3,5 3,4 2,7 2,7 2

  11. Slide 11: TF1 performs well on commercial targets and strategic slots in Sept 2016

    TF1 performs well on commercial targets and strategic slots in Sept 2016 Leader among W<50PDM from New records on the midday slot A popular Prime Time 5:00pm to 8:00pm Best month among  Best month among W<50PDM W<50PDM for more than one year (26% of audience share) 5.2m 29% 25% among W<50PDM and 34

  12. Slide 12: Successful repositioning from September 12th 2016

    Successful repositioning from September, 12th 2016 New TMC: already very successful A Prime-Time strengthened with unseen programmes Unseen on the DTT DTT leader among Ind. 25-49 1.3 million viewers The 5th national channel among A+ target Successful launch of the programme Quotidien The 4th nationa

  13. Slide 13: Digital performs well in 2016

    Digital performs well in 2016 A significant increase Top programmes Continuous innovation Example with the programme La Vengeance aux Yeux Clairs 847m The total number of videos around the screening of La Vengeance aux yeux clairs was 12.8 million of videos viewed including 250,000 for the preview a

  14. Slide 14: Advertising revenue of €1,016m for the first nine months 2016

    An advertising revenue* of €1,016m for the first nine months 2016 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 3,2% 2,6% 1,3% 0,3% 0,4% -0,7% -1,4% -2,2% -2,5% -4,2% -4,3% *Sales revenues, 5 FTA channels (including LCI and TF1 Switzerland) 14

  15. Slide 15: Leading news offer within TF1 Group

    Leading news offer within TF1 Group Revamping of the news channel Daily news: the market leader Since April 5, 2016, LCI became a free-to-air channel News show at 1 p.m.: average of 5 million viewers  New talents (vs 2.5 million viewers for our closest competitor)  New studio  Bi-Media offering N

  16. Slide 16: Financial Information - First Nine Months 2016

    FINANCIAL INFORMATION - FIRST NINE MONTHS 2016 - 16

  17. Slide 17: New presentation reflects changes in our business mix and organisation

    New presentation reflects changes in our business mix and organisation Changes in our business mix:  Divestment of Eurosport (France and International)  Acquisition of a production arm built around Newen Studios  Reorganisation of our diversification and cinema activities  Switch of LCI in Free-

  18. Slide 18: Revenue

    Revenue €m 9m 2016 9m 2015 Var. €m Var. % BROADCASTING 1 161,4 1 219,0 (57,6) -4,7% o/w FREE PLATFORMS 1 052,4 1 091,9 (39,5) -3,6% o/w TV advertising 1 015,9 1 025,5 (9,6) -0,9% o/w Other revenues 36,5 66,4 (29,9) -45,0% o/w OTHER PLATFORMS AND RELATED ACTIVITIES 109,0 127,1 (18,1) -14,2% STUDIOS &

  19. Slide 19: Trends in gross advertising spend for TF1 Group channels

    Trends in gross advertising spend for TF1 Group channels (excluding LCI) during the first nine months 2016 19

  20. Slide 20: Evolution of the costs of programmes

    Evolution of the costs of programmes 5 FTA channels 4 FTA channels €m 9m 2016 9m 2015 Var. €m Var. % Entertainment 194,7 207,1 (12,4) -6,0% TV dramas/TV movies/Series/Theatre 235,6 230,3 5,3 2,3% Sports (excl. One-off sporting events) 31,0 30 1,0 3,2% News 102,3 80,1 22,2 27,7% Movies 116,8 108,3 8,

  21. Slide 21: French drama audiovisual-rights shares-status

    French drama audiovisual-rights shares-status Before the April 27, 2015, ruling After the April 27, 2015, ruling  100% of broadcast rights are inventoried and  100% of broadcast rights were inventories April 27, 2015 valued at the rhythm of broadcast and valued at the rhythm of broadcast  100% of

  22. Slide 22: Consolidated income statement (1/2)

    Consolidated income statement (1/2) €m 9m 2016 9m 2015 Var. €m Var. % CONSOLIDATED REVENUES 1 426,7 1 400,0 26,7 1,9% Total costs of programmes 716,5 * 673,1 43,4 6,4% Other charges, depreciation, amortization, provision 663,6 620,1 43,5 7,0% CURRENT OPERATING PROFIT 46,6 106,8 (60,2) -56,4% CURRENT

  23. Slide 23: Current operating profit by segment

    Current operating profit by segment €m 9m 2016 9m 2015 Var. €m Var. % BROADCASTING 21,5 89,3 (67,8) (0,8) o/w FREE PLATFORMS (7,5) 33,5 (41,0) NS o/w OTHER PLATFORMS AND RELATED ACTIVITIES 29,0 55,8 (26,8) (0,5) STUDIOS AND ENTERTAINMENT 25,1 17,5 7,6 0,4 CURRENT OPERATING PROFIT 46,6 106,8 (60,2) (

  24. Slide 24: Consolidated income statement (2/2)

    Consolidated income statement (2/2) €m 9m 2016 9m 2015 Var. €m Var. % CURRENT OPERATING PROFIT 46,6 106,8 (60,2) -56,4% Other operating income and expenses (68,7) (15,0) (53,7) - OPERATING PROFIT (22,1) 91,8 (113,9) ns Costs of ne debt (1,0) 0,8 (1,8) ns Other financial income and expenses (1,0) (0,

  25. Slide 25: Consolidated balance sheet

    Consolidated balance sheet September 30th September 30th Var. €m 2016 2015 CONSOLIDATED ASSETS (€m) Total non-current assets 1 106,3 841,8 264,5 Total current assets 2 074,8 2 371,9 (297,1) Held-for-sale assets TOTAL ASSETS 3 181,1 3 213,7 (32,6) Net cash (+) 148,1 700,8 (552,7) CONSOLIDATED LIABILI

  26. Slide 26: Outlook

    OUTLOOK 26

  27. Slide 27: Outlook

    Outlook TF1 Group goes on with its transformation plan, implying the implementation of its multi-channel strategy, with a particular focus on the relaunch of TMC, the development in production and digital, as well as the adaptation of the cost structure to take into account market trends. “OneTransf

  28. Slide 28: Strong programmes to come before the end of the year

    Strong programmes to come before the end of the year Entertainment Special events French Drama The 2nd best launch among W<50PDM US series Movies 28

  29. Slide 29: Reinventing the Group

    REINVENTING THE GROUP 29

  30. Slide 30: Transformation objectives

    Transformation objectives 30

  31. Slide 31: The TF1 of tomorrow: a proactive, motivated team

    The TF1 of tomorrow: a proactive, motivated team 31

  32. Slide 32: Six levers to transform the Group

    Six levers to transform the Group  PREPARING FOR THE FUTURE  REINVENTING OURSELVES 32

  33. Slide 33: Appendix

    APPENDIX 33

  34. Slide 34: Landscape of DTT market in France

    Landscape of DTT market in France STATE-OWNED CANAL+ TF1 GROUP M6 GROUP NRJ GROUP NextRadioTV OTHERS CHANNELS GROUP Lagardère Amaury FREE DTT Private Investors [FTV – French State French Parliament – Radio France – INA] PAY DTT 34

  35. Slide 35: Regulation: current situation

    Regulation: current situation Obligations to invest Obligations to broadcast  3.2% in the co-production of European cinema works*  Cinema and audiovisual works: 60% European-origin and  12.5% for the commissioning of national heritage audiovisual 40% French origin at least works*  A maximum of 1

  36. Slide 36: Regulation: what we are lobbying for

    Regulation: what we are lobbying for Advertising Fiscal Issues Production & Content  Audiovisual taxes (CNC, France  Mandates for distribution of content Prohibited sectors: TV, radio, press): €90m in 2015  >36% of dependent production  Promotions in the retail sector  Audiovisual sector financ

  37. Slide 37: CSR commitment

    CSR commitment Inclusive & Cohesive Sustainable • In the content • In the content  Large visibility offered to associations on TF1’s  Ushuaïa TV since 2005 channels  More than 1000 topics in TV News Bulletin every year  Promoting diversity and women  Special editorial content ahead of the COP 2

  38. Slide 38: Rewarded efforts of TF1 Group in terms of CSR

    Rewarded efforts of TF1 Group in terms of CSR Gaïa Oekom Ethibel Sustainability Europe TF1 Group has the Prime TF1 Group received the Status. It means that it is second prize among the considered by Oekom as a TF1 Group belongs to this mid-caps in October. leader in terms of CSR in its index for an

  39. Slide 39: Contact

    Contact IR department Philippe DENERY – CFO Tel: 33-1 41 41 27 32 pdenery@tf1.fr Fax: 33-1 41 41 29 10 comfi@tf1.fr Ghislain HÜE – Head of Investor Relations TF1 ghue@tf1.fr 1 quai du Point du Jour Stéphanie LAVAL – Investor Relations 92 656 Boulogne-Billancourt Cedex slaval@tf1.fr France http://www

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