Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — M6 Group — Investor Presentation (September 2017)
53 slides from Metropole Television Sa's investor presentation, September 2017
Slide 1: Investors Presentation September 2017
PRESENTATION INVESTORS SEPTEMBER 2017
Slide 2: Disclaimer
disclaimer statements contained in this document, particularly the content of this document must not be those concerning forecasts on future m6 group considered as an offer document or as a performance, are forward-looking statements that solicitation to buy or sell m6 group shares. are potentially
Slide 3: M6 Group presentation
m6 group presentation 1. profile 2. activities 3. Acquisition of rtl radio 4. key figures 5. outlook 6. appendices 3
Slide 4: M6 Group key facts
workforce: 2 nd CREATION IN 1,991 1987 AROUND THE CHANNEL Permanent contracts French sales house 24.4% advertising market share of at 31 december 2016 fta channels in 2016 3 fta 22.2% audience share on channels 2016 revenue 2016 ebita commercial target of fta 5 €1,279m channels in 2016 pay-tv channe
Slide 5: Profile
profile 5
Slide 6: Relevance of group strategic model
profile 1.relevance of group strategic model CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES CONTENT BROADCASTING DIVERSIFICATION 6
Slide 7: Key dates
profile 2.key dates 7
Slide 8: Breakdown of 2016 revenue and EBITA
profile 3.breakdown of 2016 revenue and ebita revenue ebita excluding m6 mobile contractual compensation television television €855,8 m €159,3 m 67% 78% Eliminations and other revenues unallocated items €0,3 m -€3,5 € diversification diversification €325,0 m €39,3 m 25% 19% Production Production & &
Slide 9: Corporate governance
profile 4.corporate governance GUILLAUME DE POSCH NICOLAS DE TAVERNOST SUPERVISORY BOARD THOMAS JEROME DAVID VALENTIN LEFEBURE LARRAMENDY 9 of which 4 independent members as defined by afep-medef
Slide 10: Activities
activities 10
Slide 11: Strategic model
activities strategic model A STRATEGIC MODEL OF DEVELOPMENT LEANING ON THE COMPLEMENTARITY AND THE TRANSVERSALITY OF ITS ACTIVITIES ON ALL THE VALUE CHAIN CONTENT ACQUISITION AND PRODUCTION CONTENT DIGITAL ACTIVITIES BROADCASTING DIVERSIFICATION … 11
Slide 12: Television: family of channels objectives
activities 1.television 1 family of channels OBJECTIVES logic maximizing Power effect of the sales 1 advertising house revenues Thanks to the optimal use optimizing 2 programming of stock rights and in- house production cost subsidiaries 12
Slide 13: Television – a family of complementary channels targeting women under 50
activities television – a family of complementary channels targeting women under 50 fta channels pay-tv channels 13
Slide 14: 2017: M6 Group gained ground on WRP-50
activities - television - audience ratings 2017 : m6 group gained ground on wrp-50 2016 ytd 2017 ytd audience ratings of free-to-air channels +0.8pp -1.0pp -0.1pp 28,9 -1.4pp 4+ audience 26,9 27,7 27,9 14,1 14,0 share (%) 7,7 6,3 +0.8pp +0.2pp -1.0pp 31,1 31,9 17,7 16,7 -1.2pp wrp-50 audience 22,1 2
Slide 15: On the commercial target, M6 has never been so close to TF1
activities - television - audience ratings 2017 : on the commercial target, m6 has never been so close to tf1 change in m6 / tf1 channel audience share ratio among wrp-50 71% 72% 67% 64% 64% 64% 66% 58% 59% 57% 54% 54% 54% 52% 53% 55% 52% 51% 50% 47% 48% 46% 40% 38% 36% 34% 25% 27% 22% ytd Source :
Slide 16: 2017: M6 leader in access prime time
activities - television - audience ratings 2017: m6 leader in access prime time wrp-50 audience share monday-friday 6pm – 9pm 2017 ytd 17.7% 17.6% 12 source : mmw médiamétrie – lundi-vendredi
Slide 17: W9 and 6ter among leading DTT channels
activities - television – dtt audience ratings 2016 ytd 2017 - w9 and 6ter among the leading dtt channels on the 2017 ytd commercial target 3,5 3,4 3,2 2,8 2,9 2,7 2,2 2,5 2,1 1,7 1,8 2,0 1,7 2,0 1,9 1,9 1,7 1,7 1,7 1,6 1,6 1,4 1,2 1,2 1,2 1,0 1,1 0,9 1,1 1,0 4+ audience share 0,8 0,7 0,8 0,7 0,6 (%
Slide 18: Focus summertime 2017
activities - television – audience ratings focus summertime 2017 été 2016 été 2017 +0.3pp +1.3pp 29,7 -2.5pps 29,4 24,6 23,3 fta channels 20,0 17,5 -0.2pp wrp-50 audience share (%) 4,7 4,5 +1.1pp -0.3pp +0.4pp 23,3 24,4 21,3 21,0 16,9 17,3 -1.8pp +0.7pp +0.6pp 10,3 -0.8pp 9,8 10,5 10,1 8,5 +0.2pp =
Slide 19: Summertime 2017: news magazines and news shows performed remarkably
activities - television - audience ratings summertime 2017: on m6 news magazines and news shows performed remarkably Audience share 4+ / wrp-50 (%) – consolidated rating 21% WRP-50 19% WRP-50 21% WRP-50 Best summer Best summer Best summer since 2005 since 2006 since 2009 21% WRP-50 Best summer 4+/WR
Slide 20: M6 Group advertising revenue reached an all-time high
television - advertising market +4.1% m6 group advertising revenue reached an all-time high 792.9 762.0 free-to-air channels m6 group net advertising 2015 2016 revenue (€ millions) +4.8% 853.3 813.9 +16.3% 60.4 other 52.0 activities internet 2015 2016 2015 2016 20
Slide 21: Advertising market share increase in 2016
television - advertising market 2009/2015 m6 group free-to-air channels saw their advertising 2016 market share increase by 0.9 pp in 2016, reaching an all- time high change in net tv advertising market share of m6 group's free-to-air channels since 2009 - % +2.3pp 24.4% 23.7% 23.3% 23.5% 22.3% 22.4
Slide 22: Content acquisition and production objectives
activities 2 2.content acquisition and production OBJECTIVES safeguarding 1 content supply for our tv channels diversifying 2 revenues 22
Slide 23: Box office success of movies distributed by SND
production & audiovisual rights cinema box office success of growth in both revenue and ebita due to a more favourable cinema release line- up movies distributed by snd 2.1 m 2.1 m admissions admissions 2015 revenue (€ m) 2016 +4.2% 15 movies released vs. 97.6 13 in 2015 1.8 m 93.6 admissions 10.5 m
Slide 24: Digital activities objectives
activities 3.digital activities 3 OBJECTIVES reinforcing the tv access and 1 audience/content Accompanying new use and innovate for advertisers consumption on the internet 2 identifying future talents 24
Slide 25: M6 Web: growth in online video advertising revenues
digital m6 web : growth in online video advertising revenues catch up the group continues to develop its digital platform more than revenue (€ m) 69.3 ebita (€ m) 15m 1.5bil. 62.4 videos viewed in 2016 10.0 13.5 registered users (up 54% year on year) 2015 2016 2015 2016 portails due to the integrati
Slide 26: Diversification objectives
activities 4.diversification 4 OBJECTIVES use air-time and available - air-time : home-shopping, call-TV, … 1 advertising slots to generate new revenue - advertising time: m6 interaction, monAlbumPhoto.fr,… m6 group, one of the most diversified tv 2 groups in Europe … diversifying revenues (33% of r
Slide 27: Ventadis: business volume maintained in a challenging market
DIVERSIFICATION new bestsellers Ventadis: business volume maintained in a challenging market revenue (€ m) Glambrush Starshower Pocket Hose 2015 2016 +0.6% extension of the range 157.7 158.7 Development of new photo product segments and production capacity doubled range undergoing renewal ebita (€ m
Slide 28: F.C.G.B: reduction in losses
DIVERSIFICATION F.C.G.B: reduction in losses sports results once again 2015 falling short, marked by failure 2016 to qualify for a european revenue (€ m) competition 64.4 57.9 2014/2015 6th failed to qualify 2015/2016 11th group stage ebita (€ millions) failed to 2016/2017 6th qualify 2017/2018 fail
Slide 29: Acquisition of RTL Radio
acquisition of rtl radio 29
Slide 30: RTL Radio division, a major opportunity
acquisition of rtl radio rtl radio division, a major opportunity ACQUISITION OF A LEADER WITHIN A SOLID AND STABLE MARKET A NEW CONTRIBUTION TO EBITA CREATION OF A MULTIMEDIA SALES HOUSE POTENTIAL FOR SYNERGIES Text Support functions OPTIMISATION OF M6’S BALANCE SHEET STRUCTURE LEADING TO STRONG VAL
Slide 31: RTL Radio, the leading French private radio group
acquisition of rtl radio rtl radio, the leading french private Radio Group 31
Slide 32: Acquisition of a group of companies
acquisition of rtl radio acquisition of a group of companies General Music Diversification Sales house activities interest radio radio FRANCE REGIONS 32
Slide 33: Key figures from RTL Radio division in France
acquisition of rtl radio key figures from rtl radio division in france (€m) 2014 reported 2015 reported 165.9 168.5 166.6 164.0 2015 corrected 147.5 146.8 145.2 2016 144.0 24.5 20.7 19.8 16.6 CONSOLIDATED REVENUE OPERATING EXPENSES CONSOLIDATED EBITA 33 Source : Rapports annuels RTL Group – Périmètr
Slide 34: A stable yet fragmented market in which RTL is leader
acquisition of rtl radio a stable yet fragmented market in which rtl is leader Cumulative audience and listening time Net advertising market (€ millions) 44,0 03:01 900 43,4 805 43,5 02:58 800 712 43,0 02:54 02:55 700 02:55 708 42,5 02:52 600 42,0 02:49 42,2 500 41,5 02:47 41,0 02:44 400 Nov-DecNov-
Slide 35: Competition that is already multimedia based
acquisition of rtl radio competition that is already multimedia based sales Radio / Digital Radio / TV / Digital Radio / TV / Digital / Press Radio / TV / Digital Radio / TV / Digital house Radio TV Digital Press 35
Slide 36: The industrial project: integration of a fourth activity
acquisition of rtl radio the industrial project: integration of a fourth activity into M6 Group and creation of a multimedia sales house Executive Board Production & TV Radio Diversification Audiovisual Rights SND M6 Films Channels Production RTL RTL2 FUN Web Ventadis Interactions Division FCGB Cata
Slide 37: Targeting EBITA of €38 million for radio division by 2020
acquisition of rtl radio m6 group is targeting ebita of €38 million for the radio division by 2020 EBITA bringing together the sales teams dedicated to the Television, Radio and €38 m innovation in content, including News Digital markets to strengthen the due to rtl’s leadership, as well as attracti
Slide 38: Key figures
key figures 38
Slide 39: 2016 results
key figures key figures (€ millions) 1. 2016 results 2015 2016 +1.6% +2.3% 200.2 203.5 1,278.7 ebita exc. impact 1,249.8 +4.7% of m6 mobile exit 1,060.9 1,110.3 +22.6% 245.5 200.2 +32.9% 152.8 114.9 77.1 11.3 consolidated revenue other operating operating expenses consolidated ebita net profit reven
Slide 40: H1 2017 results
key figures key figures (€ millions) 2. h1 2017 results h1 2016 h1 2017 +27.1% +2.6% 93.4 118.7 645.5 662.4 ebita exc. impact -5.3% of m6 mobile exit 579.4 548.6 -12.7% 136.0 118.7 -17.2% 83.5 69.1 69.9 4.9 consolidated revenue other operating operating expenses consolidated ebita net profit revenue
Slide 41: Revenue since 1994 (initial public offering)
key figures 3.Revenue since 1994 (initial public offering) aagr +7% 41
Slide 42: EBITA since 1994 (initial public offering)
key figures 4.ebita since 1994 (initial public offering) aagr +6% 42
Slide 43: Net cash position (since 2007)
key figures 5.net cash position (since 2007) 43
Slide 44: Profile of M6 Group and price of the transaction
key figures 6. profile of m6 group and price of the transaction consolidated cash position debt capacity tv sector ratio : 0,9 x EBITDA €176,4 m (at 12/31/2016) => m6 capacity~300 M€ price of the transaction borrower profile Positive net cash before the transaction €199,8 m (debt free/ Investm
Slide 45: Outlook
outlook 45
Slide 46: Consolidate audience ratings
outlook challenges CONTENT BROADCASTING consolidate audience ratings 46
Slide 47: Continue to invest in content
outlook challenges CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES continue to invest in content 47
Slide 48: Invest in digital
outlook challenges Invest in digital 48
Slide 49: Achieve the integration of RTL radio division
outlook challenges RADIO achieve the integration of rtl radio division 49
Slide 50: Appendices
appendices 50
Slide 51: Condensed consolidated statement of comprehensive income
2016 / 2015 change M6 Group 31 December 2015 31 December 2016 (€ millions) Revenue 1,249.8 1,278.7 28.9 Other operating revenues 11.3 77.1 65.8 Total operating revenues 1,261.1 1,355.8 94.7 Materials and other operating expenses (630.2) (647.8) (17.6) Personnel costs (including profit sharing plan (
Slide 52: Condensed balance sheet
2016 / 2015 change M6 Group 31 December 2015 (*) 31 December 2016 (€ millions) Goodwill 89.7 101.5 11.8 Non-current assets 287.2 304.7 17.4 Current assets 637.3 680.6 43.3 Cash and cash equivalents 175.8 174.4 (1.4) financial statements TOTAL ASSETS 1,190.2 1,261.3 71.0 condensed balance sheet Group
Slide 53: Cash flow statement
M6 Group 31 December 2015 31 December 2016 Change (€ m) Self-financing capacity from operations 318.2 373.2 55.1 Operating WCR movements (65.2) (21.0) 44.2 Advances on leases (20.0) - 20.0 Income tax (76.2) (83.7) (7.6) Cash flow from operating activities 156.8 268.5 111.7 Cash flow from investment