Slide 1: Presentation of 2020 Annual Results
PRESENTATION OF 2020 ANNUAL RESULTS
Slide 2: 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 INDICATOR OF FUTUR
Slide 3: Presentation of 2020 Annual Results
M6 GROUP PRESENTATION OF 2020 ANNUAL RESULTS INTRODUCTION OPERATIONS FINANCIAL STATEMENTS OUTLOOK 3
Slide 4: Introduction
INTRODUCTION
Slide 5: An agile response to the pandemic
INTRODUCTION AN AGILE RESPONSE TO THE Editorial offering of the Group’s media PANDEMIC adjusted Enhanced news output Creation of new programmes (Tous en Cuisine, etc.) Intensification of TV/Radio/Digital crossovers Launch of an extensive savings plan Economic slowdown 5
Slide 6: An agile response to the pandemic
INTRODUCTION AN AGILE RESPONSE TO THE PANDEMIC THE FRENCH ECONOMY IN LOCKDOWN IMPLEMENTATION OF AN EXTENSIVE SAVINGS PLAN Consolidated Operating revenues down -€182.5m expenditure down +€168.9m -€127,4 -€55,1 +€67,6 +€29,6 +€71,6 m m m m m Non-advertising Programming Business Other Advertising reven
Slide 7: Three major transactions
INTRODUCTION THREE MAJOR TRANSACTIONS Group’s positioning strengthened in marketing and digital technologies International expansion 100% 42% M6 is leading shareholder in new structure (42%) CAPITAL GAINS ON 2020 DISPOSALS 50% Aim of accelerating the Group’s innovation capacity in streaming €123.5m
Slide 8: EBITA, operating margin, net profit
OPERATING MARGIN EBITA NET PROFIT €270.7m 21.3% €276.6m up 1.7pp 2nd highest highest level in 2nd highest level ever 20 years level ever 8
Slide 9: Key figures
2020 KEY FIGURES ~~
Slide 10: Record results despite COVID-19
INTRODUCTION - KEY FIGURES KEY FIGURES (€ millions) RECORD RESULTS DESPITE COVID-19 2019 2020 -12.5% 1,456.1 1,273.6 -11.5% -13.6% 1,107.9 1,177.5 980.5 1,017.6 -4.8% +60.9% 284.4 270.7 276.6 171.9 14.7 5.8 CONSOLIDATED ADVERTISING OTHER OPERATING OPERATING CONSOLIDATED NET PROFIT REVENUE REVENUE RE
Slide 11: Fall in revenues offset by the reduction in costs
INTRODUCTION - KEY FIGURES FALL IN REVENUES RELATED TO COVID-19 AND EXITS FROM THE CONSOLIDATION SCOPE OFFSET BY THE REDUCTION IN COSTS TELEVISION RADIO PRODUCTION & OTHER OTHER TOTAL AUDIOVISUAL RIGHTS DIVERSIFICATION 2020 VS 2019 +€0.5m REVENUE GROWTH -€12.8m -€24.3m -€60.3m -€148.9m* -€85.7m -€18
Slide 12: Audience ratings
VISION AUDIENCE RATINGS
Slide 13: TV consumption surged to record levels, far ahead of SVOD platforms
AUDIENCE RATINGS - TELEVISION TV CONSUMPTION SURGED TO RECORD LEVELS, FAR AHEAD OF SVOD PLATFORMS DAILY COVERAGE IVT 4+ 4+ 3h58 44m DAILY IVT 4+ COVERAGE 4+ 29mins 6m 13 Sources: Médiamétrie / Médiamat + SVOD report Médiamétrie/Harris interactive + Médiamétrie / Total video + NPA Institute
Slide 14: 2020: M6, the 2nd largest group on the commercial target
AUDIENCE RATINGS - TELEVISION 2020: M6, THE 2ND LARGEST GROUP ON THE COMMERCIAL TARGET 2019 2020 4+ AND WRP<50 AUDIENCE SHARES OF THE GROUPS (%) 4+ AUDIENCE SHARE (%) WRP<50 AUDIENCE SHARE (%) 28,9 32,4 (excl. france.info) 28,9 32,6 26,8 22,7 27,2 22,8 14,6 15,9 14,5 (excl. france.info) 16,4 6,3 6,3
Slide 15: Progress of access prime time
TELEVISION - AUDIENCE RATINGS PROGRESS OF 18% WRP<50 1.8m ACCESS PRIME TIME 0 0 WRP <50 AUDIENCE SHARE (%) MONDAY-FRIDAY 16% WRP<50 10 2 5.30 – 9PM 2.1m 06 3 22% WRP<50 3.1m 17.4 % Year-on-year audience growth of 20% 85 Top serial in France – most watched daily drama 96 15 Source: Médiamétrie
Slide 16: Strong longstanding brands & success of new evening programmes
TELEVISION - AUDIENCE RATINGS STRONG LONGSTANDING BRANDS & SUCCESS OF NEW EVENING PROGRAMMES 25% WRP<50 and Best season for BEST SEASON EVER 28% WRP<50 and 3.5M 4.1M for its 15th season WRP<50 for 8 years WRP<50 for its 9th season 18% WRP<50 and 32% WRP<50 and 4.5M 33% WRP<50 and 4.5M 33% WRP<50 and
Slide 17: DTT audience ratings
DTT AUDIENCE RATINGS
Slide 18: W9, 6ter and Gulli audience growth
TELEVISION – DTT AUDIENCE RATINGS W9 POSTS YEAR-ON-YEAR GROWTH ACROSS ENTIRE VIEWING PUBLIC, 6TER AND GULLI ON THE COMMERCIAL TARGET 3,1 3,0 2,9 2,9 2019 2020 2,5 2,6 2,6 2,3 2,3 2,3 1,8 1,8 1,7 1,7 1,8 1,6 1,5 1,4 1,4 1,3 1,5 1,3 1,4 1,3 1,6 1,2 4+ AUDIENCE 1,3 1,0 1,2 1,2 1,1 1,1 1,1 SHARE (%) 0,8
Slide 19: Record year for the Group's DTT channels
AUDIENCE RATINGS – TELEVISION – DTT RECORD YEAR FOR THE GROUP’S DTT CHANNELS BEST YEAR FOR 4+ IN 7 YEARS BEST EVER YEAR BEST YEAR AMONGST WRP 2.6% 4+ / WRP<50 WITH CHILDREN IN 8 YEARS 1.7% / 2.9% 2.6% 98/100 of the highest audiences for online screens* DTT HD Most popular The most powerful magazine
Slide 20: Audience ratings pay channels
AUDIENCE RATINGS PAY CHANNELS
Slide 21: Paris Première and Téva, 2 of the 3 most powerful pay channels
TELEVISION – PAY CHANNELS AUDIENCE RATINGS 2020: PARIS PREMIÈRE AND TÉVA, 2 OF THE 3 MOST POWERFUL PAY CHANNELS BEST EVER YEAR - OVER 4S AND TÉVA STILL HUGELY POPULAR UPPER SOCIO-PROFESSIONALS WITH FEMALE VIEWERS N°1: most watched pay-TV channel with 15 million viewers every month Highest level in 3
Slide 22: Audience ratings 6play
ele WISION UDIENCE °” RATINGS 6PLAY
Slide 23: Successful audience figures on 6play, a genuine AVOD platform
Development of the “Extended” TELEVISION On-demand extension of channels offering (exclusive content) 6PLAY AUDIENCE RATINGS SUCCESSFUL AUDIENCE FIGURES ON 6PLAY, A GENUINE AVOD PLATFORM 16.3m active users every month Attractiveness of ’s 1.3 bn targeted advertising videos viewed in 2020 service 23
Slide 24: Audience ratings radio
RADIO cm AUDIENCE ® RATINGS
Slide 25: Radio division: leading private radio group
RADIO - AUDIENCE RATINGS RADIO DIVISION: LEADING PRIVATE RADIO GROUP ONLY PRIVATE GROUP TO ACHIEVE YEAR-ON-YEAR GROWTH +5.2pp Competitive advantage over main rival 18.8 Audience share 13.6 by private group +0.3pp 11.8 (%) 9.2 -0.6pp -0.7pp -0.5pp 5.7 -0.5pp NRJ Group TF1 Publicité Radios Lagardère R
Slide 26: Relevant positioning of the radio division's stations
RADIO - AUDIENCE RATINGS RELEVANT POSITIONING OF THE RADIO DIVISION’S STATIONS 13.0% audience 2.9% audience 2.9% audience share share share among 13+ among 13+ among 13+ N°1 radio station in France 2nd 2nd RTL achieves more than double the Music station for the 25-49 age Music station among upper au
Slide 27: Acceleration of TV/radio synergies
RADIO - AUDIENCE RATINGS ACCELERATION OF TV/RADIO SYNERGIES INTENSIFICATION OF CROSS- DEVELOPMENT OF RADIO/TV BROADCAST OF CO-PRODUCED MEDIA ADVERTISING CROSSOVERS FOR PRESENTERS PROGRAMMES CAMPAIGNS FIVEFOLD INCREASE IN ADVERTISING CONTACTS GENERATED BY THE RTL, RTL2 AND FUN RADIO CAMPAIGNS ON THE
Slide 28: Advertising market
ADVERTISING MARKET
Slide 29: M6 Group advertising revenue impacted by the pandemic
-12.7% 2. ADVERTISING MARKET Excluding Youth TV M6 GROUP ADVERTISING REVENUE division IMPACTED BY THE PANDEMIC TV -10.8% 930.4 829.5 M6 GROUP NET ADVERTISING REVENUES (€ MILLIONS) 2019 2020 -11.5% 1,107.9 980.5 -14.9% OTHER OPERATIONS 177.5 151.0 2019 2020 2019 2020 29
Slide 30: M6 Group's sales house strengthened
CHANGE IN NET TV ADVERTISING MARKET SHARE OF M6 GROUP'S CHANNELS AND ASSOCIATED SERVICES SINCE 2018 (%) 2018/2019 2020 INTEGRATION OF ADVERTISING MARKET M6 GROUP’S PERFORMANCE SALES HOUSE OF TRADITIONAL ACTIVITIES STRENGTHENED ITS POSITION IN +1.3pp THE TV MARKET 27.3% 27.4%* 26.1% 30 * M6 estimates
Slide 31: TV & radio key figures
TV & RADIO KEY FIGURES
Slide 32: Television: 100%+ of the fall in revenues offset by cost savings
TELEVISION – KEY FIGURES 100%+ OF THE FALL IN REVENUES OFFSET BY COST SAVINGS REVENUE (€ M) EBITA (€ M) -8.5% 2019 2020 1,013.6 927.9 Decline in advertising revenue +0.9% Savings plan for 223.6 225.6 programme line-up and structure costs 32
Slide 33: Radio: 66% of the fall in revenues offset by cost savings
RADIO 66% OF THE FALL IN REVENUES OFFSET BY COST SAVINGS REVENUE (€ M) EBITA (€ M) 2019 2020 -14.2% 171.0 Decline in advertising 146.6 revenue Savings plan for -27.3% programme line-up and structure costs 30.1 21.9 33
Slide 34: Production & audiovisual rights
& AUDIOVISUAL RIGHTS
Slide 35: Profitability maintained despite the closure of cinemas
PRODUCTION & AUDIOVISUAL RIGHTS CINEMA PROFITABILITY MAINTAINED DESPITE THE CLOSURE OF CINEMAS CINEMAS CLOSED FOR MORE THAN 5 MONTHS 4.9M ADMISSIONS IN FRANCE REVENUE (€ M) -17.0% 1.1M 0.9M 0.6M ADMISSIONS ADMISSIONS ADMISSIONS 75.1 62.4 2019 2020 EBITA (€ M) -7.3% AUDIOVISUAL RIGHTS 14.8 13.8 INCRE
Slide 36: Other diversification
DELA RECETTES SEMAINE Chercher : tarte Inspiratio Toujours F OTHER ERSIFICATION
Slide 37: Continued turnover of the consolidated diversification portfolio
OTHER DIVERSIFICATION DISCONTINUED CONTINUING OPERATIONS OPERATIONS CONTINUED TURNOVER OF THE CONSOLIDATED DIVERSIFICATION PORTFOLIO… REVENUE (€ M) DISPOSAL ON -30.8% 2019 1 OCTOBER 2020 DECLINE IN REVENUE 2020 196.1 Impact of public health 135.8 restrictions: Closure of entertainment venues (M6 Int
Slide 38: Portfolio of non-consolidated assets, a reservoir of value
OTHER DIVERSIFICATION … BENEFITING THE PORTFOLIO OF NON-CONSOLIDATED ASSETS, A RESERVOIR OF VALUE FOR M6 GROUP INVESTMENTS IN ASSETS WITH HIGH POTENTIAL AND OPERATING IN DIVERSIFIED MARKETS VIDEO STREAMING DIGITAL MARKETING NON-MEDIA BACKED OTHER BY THE CORE BUSINESS 50% held 42% held 49% held Book
Slide 39: Financial statements
FINANCIAL , STATEMENTS ~~
Slide 40: Condensed consolidated statement of comprehensive income
FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 31 December 2019 2020 / 2019 change M6 Group 31 December 2020 restated1 (€ millions) Revenue 1,456.1 1,273.6 (182.5) Other operating revenues 5.8 14.7 8.9 Total operating revenues 1,461.9 1,288.2 (173.6) Materials and othe
Slide 41: Condensed balance sheet
FINANCIAL STATEMENTS CONDENSED BALANCE SHEET 31 December 2019 2020 / 2019 change M6 Group 31 December 2020 restated1 (€ millions) Goodwill 299.8 282.2 (17.6) Non-current assets 471.5 535.7 64.2 Current assets 859.7 846.6 (13.1) Cash and cash equivalents 45.9 197.0 151.1 Assets held for sale(2) 49.2
Slide 42: Cash flow statement
FINANCIAL STATEMENTS CASH FLOW STATEMENT 2020 / 2019 M6 Group 31 December 2019 31 December 2020 change (€ m) Self-financing capacity from operations 399.2 354 (45.1) Operating WCR movements (28.4) (8.2) 20.2 Income tax (94.0) (99.2) (5.2) Cash flow from operating activities 276.7 246.6 (30.1) Cash f
Slide 43: Proposed dividend of €1.50 per share
FINANCIAL STATEMENTS PROPOSED DIVIDEND OF €1.50 PER SHARE yield (calculated based on pay-out ratio (as % of net profit ordinary dividend the year-end closing price) from continuing activities per share paid for attributable to the group) the year 43
Slide 44: Outlook
OUTLOOK
Slide 45: 2021 challenges: grow our core business within an environment still impacted by the pandemic
OUTLOOK 2021 CHALLENGES: GROW OUR CORE BUSINESS WITHIN AN ENVIRONMENT STILL IMPACTED BY THE PANDEMIC Ensure the competition Implement the Capitalise on the Continue the conditions Continue synergies plan Develop targeted advertising Radio/TV between developing Salto with the Youth TV advertising rec
Slide 46: Questions
QUESTIONS oa ANSWERS &