Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — TF1 Group — Investor Presentation (September 2012)
42 slides from Television Francaise 1 Sa's investor presentation, September 2012
Slide 1: Investor Presentation September 2012
INVESTOR PRESENTATION September 2012
Slide 2: Disclaimer
DISCLAIMER All forward‐looking statements are TF1 management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the f forward‐looking d l ki statements. t t t 2
Slide 3: TF1 Group
TF1 GROUP PAY TV ADVERTISING DIVERSIFICATION AUDIOVISUAL BROADCASTING FREE CHANNELS PRODUCTION (FRANCE) ADGENCY & INTERNET RIGHTS INTERNATIONAL * * to be launched at end‐2012 3
Slide 4: A record for TV consumption
A RECORD FOR TV CONSUMPTION Evolution of TV consumption between Jan‐Jun 1990 and Jan‐Jun 2012: Women<50 PDM : 4h10, i.e +16’ vs Jan‐Jun 2011 / +7 % (incl. 5’49 of offline viewing) Individuals aged 4+ : 3h59, i.e +12’ vs Jan‐Jun 2011 / +5% (incl. 4’15 of offline viewing) 4:10 3:54 3:46 3:49 3:47 3:39
Slide 5: The switch-off boosts the free digital networks
THE SWITCH‐OFF BOOSTS THE FREE DIGITAL NETWORKS 59.6% Number of Evol. 60.4% Mode Evolution of penetration rate as a % of households 59.6% households YOY (base: households TV equipped) 56.6% 16.1m ‐0.8 pt DTT connected 43.1% 39.9% 10.8m + 10.0 pts HD DTT connected 38.8% 35.7% 9.6m + 8.2 pts TV recept
Slide 6: Group TF1 in H1 2012: an unrivalled free-to-view offer
GROUP TF1 IN H1 2012 : AN UNRIVALLED FREE‐TO‐VIEW OFFER 6.4 8 3.6 % 2.1 % million TV viewers evenings g out of 10 Audience share Audience share in prime time most‐viewed channel Individuals Individuals 25.3 % 22.7 % 4.0 % 2.7 % Audience share Audience share Audience share Audience share Women < 50 P
Slide 7: TF1: the mass media
TF1 : THE MASS MEDIA Programmes acclaimed by viewers 50 of the top audiences over the 1st half 2012 50/50 / 50/50 / 48/50 / 47/50 / Women<50 PDM* Women 25‐49 Individuals 25‐49 Individuals 15‐34 31 viewers on average programmes attracted million each day 50 more than 8 millions viewers Source: Médiam
Slide 8: TF1, the 1st French TV channel
TF1, THE 1ST FRENCH TV CHANNEL (end‐June 2012) 4 years and over Women <50 Change vs. H1 2011 Change vs. H1 2011 ‐5% ‐3% ‐6% +9% ‐3% +5% ‐6% ‐1% ‐6% +1% = +8% Jan-Jun 2011 Jan-Jun 2011 26.8 Jan-Jun 2012 25.3 Jan-Jun 2012 23.8 22.7 24.3 21.9 22.6 20.9 15.2 14.8 17.1 17.3 11.4 11.7 11.4 11.1 11.0 9.9 9
Slide 9: TF1 the clear leader in high-potential slots
TF1 THE CLEAR LEADER IN HIGH‐POTENTIAL SLOTS Viewer numbers 6.4m Prime Time 3.8m 3.7m 3.3m Second Time 1.6m 2.0m 2 0m 3.3m Access 1.9m 2.0m Time slots: access (6 pm to 7.45 pm), prime time (8.45 pm to 10.30 pm), second time (10.30 pm to 00.30 am) / Source: Médiamétrie – Médiamat – H1 2012 9
Slide 10: Trend in TF1 audiences in prime time access
TREND IN TF1 AUDIENCES IN PRIME TIME ACCESS Prime Time Access = 6 pm to 7.45 pm Audience Individuals aged 25‐49 Women <50 PDM* share (%) 27.0 22 9 22.9 26 8 26.8 21.9 22.0 21.9 .22,0 22.1 25.0 25.1 24.9 25.2 22.1 24.5 24.8 20.9 20.7 21.0 21.2 23.0 23.7 23.6 20.4 23.8 Janvier Février Mars Avril Janvi
Slide 11: Records in all programme types
RECORDS IN ALL PROGRAMME TYPES ENTERTAINMENT CINEMA SPORT Les Enfoirés: 13.3 m, record for the show Gran Torino: 9 9.4 4mm, best audience for a film since Euro 2012: 12.9 m for Spain/Italy, / best audience ratings November 2010 for a football match since June 2006, all channels NRJ Music Awards: 7.0
Slide 12: Innovation-driven TF1 programmes
INNOVATION‐DRIVEN TF1 PROGRAMMES ` ALL DAY EVENING ACCESS AFTERNOON MORNING 9.3 m, best score for Saturday Peak 9.7 m viewers and more than 7 m Clear leader in ad targets (29% audience Ratings boost in morning slot entertainment show since Dec 2006 every evening share women <50 pdm) (30% growth on w
Slide 13: Q1 2012: resilience of group audience share on targets
Q1 2012: RESILIENCE OF GROUP AUDIENCE SHARE ON TARGETS 4 years and over Women <50 2.3 2.7 1.8 3.8 2.1 4.0 3.5 3.6 26.8 25.3 23.8 22.7 Janv‐Jun 2011 Janv‐Jun 2011 Janv‐Jun 2012 Janv‐Jun 2011 Janv‐Jun 2011 Janv‐Jun 2012 29.1% 28.4% 32.9% 32.0% Source: Médiamétrie – Médiamat – January‐March 2012 13
Slide 14: TMC and NT1 confirm audience momentum
TMC AND NT1 CONFIRM AUDIENCE MOMENTUM 4 and over Women <50 PDM + 2.9% + 16.7% Audience share + 5.3% + 17.4% 35 3.5 36 3.6 H1 2011 3.8 40 4.0 H1 2012 2.7 2.1 2.3 1.8 ` TMC: o Fifth‐ranked channel in France for individuals and long‐standing DTT leader o Top two DTT audience ratings in 2012: peak of 2.
Slide 15: Plurimedia investments down in early 2012
PLURIMEDIA INVESTMENTS DOWN IN EARLY 2012 Gross plurimedia investment (€m) – Jan‐June 2012 vs 2011 +3.8% TOTAL GROSS PLURIMEDIA PLURIMEDIA: +0.3% +0 3% AT €13,585 €13 585 m ‐1.1% Net H1 2012 trend Stability at best in TV market 4,455 +3.6% Negative when combined with other media 3,754 ‐2.4%* ‐7.3% 7
Slide 16: TV still driven by TNT
TV STILL DRIVEN BY TNT Trend in gross TV investment (€m) – Jan‐June 2012 TOTAL TV: +3.8% at €4,455 m TOTAL Freeview TV: ‐0.5% +4 4% at €4,034 +4.4% €4 034 m Trend +1.5% +15.6% ‐13.6% 2,684 ‐1.9% 1 350 1,350 ‐1.0% 1 0% = 421 National TV DTT Cab Sat Source: Kantar média – excl. TV sponsoring – Jan‐Jun
Slide 17: Ad market under pressure from economic environment
AD MARKET UNDER PRESSURE FROM ECONOMIC ENVIRONMENT Quarterly trend in volume of advertising broadcast on TV 20,0% 19.3% I Incumbent b t TV DTT 13.5% 10 0% 10,0% 8.3% 4.4% 4.8% 3.6% 1.6% 0,0% -7.5% -8.1% -10,0% -9.8% -9.2% -9.2% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 STRONG PRESSURE ON PRICE
Slide 18: TF1 supported its customers in H1 2012
TF1 SUPPORTED ITS CUSTOMERS IN H1 2012 NET REVENUE H1 2012 VS. H1 2011: ‐5.9% Q1 2012 vs. Q1 2011 Q2 2012 vs. Q2 2011 H1 2012 vs. H1 2011 1.1% 1.5% 1.9% ‐3.9% ‐7.6% ‐5.9% Gross revenue Net revenue Source: Kantar média 18
Slide 19: Moving ahead on other activities
MOVING AHEAD ON OTHER ACTIVITIES DYNAMIC REINFORCED PAY TV CONSUMER SERVICES SERVICES Theme channels Eurosport International • Revenue up 10.1% • Revenue up 4.4% R • Revenue 19 8% up 19.8% • Non‐exclusive distribution • Audience rise for Group • Restructure underway • Brand growth • Sharp increase i
Slide 20: 360° strategy for UEFA Euro 2012
360° STRATEGY FOR UEFA EURO 2012 Strong audience ratings Programming cost ` An average 8.3 m viewers for the 9 matches on TF1 ` 8 matches broadcast in Q2 2012 34% audience share individuals and 49% men 15‐49 ` Final broadcast in Q3 2012 (1 July 2012) ` Spain / Italy final: 12.9 m viewers TV ` Compet
Slide 21: Eurosport: from a sports TV channel to a multimedia platform
EUROSPORT : FROM A SPORTS TV CHANNEL TO A MULTIMEDIA PLATFORM SINCE 2005 SINCE 2006 SINCE 2000 47 countries 17 countries SINCE 2008 18 languages 2 languages 57m households 6m households 43 countries 37 countries 20 languages 3 languages 17m households SINCE 1989 SINCE 2008 59 countries 59 countries
Slide 22: Financial Information
FINANCIAL INFORMATION 22
Slide 23: Advertising revenue evolution
ADVERTISING REVENUE EVOLUTION €m H1 2012 H1 2011 Var. €m Var. % Consolidated revenue 1,301.2 1,277.6 +23.6 +1.8% Advertising revenue TF1 channel 713.2 757.8 ‐44.6 ‐5.9% Diversification revenue 588.0 519.8 +68.2 +13.1% Detail of the total advertising revenue TF1 Channel 713.2 757.8 ‐44.6 ‐5.9% Themat
Slide 24: TF1 core channel programming costs evolution
TF1 CORE CHANNEL PROGRAMMING COSTS EVOLUTION €m H1 2012 H1 2011 Var. €m Var. % Total programming costs 476.5 423.6 +52.9 +12.5% One‐off sporting events 21.8 ‐ +21.8 ns Programming costs excl. one‐off sporting events 454.7 423.6 +31.1 +7.3% Entertainment 128.6 110.1 +18.5 +16.8% TV dramas / TV movies
Slide 25: Consolidated income statement (1/2)
CONSOLIDATED INCOME STATEMENT (1/2) €m H1 2012 H1 2011 Var. €m Var. % Consolidated revenue 1,301.2 , 1,277.6 , +23.6 +1.8% Total programming costs (476.5) (423.6) ‐52.9 +12.5% Total other charges (640 3) (640.3) (610 6) (610.6) ‐29.7 29 7 +4 9% +4.9% Depreciation and amortisation, provisions and (50
Slide 26: Consolidated income statement (2/2)
CONSOLIDATED INCOME STATEMENT(2/2) €m H1 2012 H1 2011 Var. €m Var. % Operating profit 133.9 186.5 ‐52.6 ‐28.2% Cost of net debt 0.0 0.2 ‐ 0.2 ns Other financial income and expenses 57 5.7 (1 0) (1.0) +6 7 +6.7 ns Income tax expense (43.9) (53.1) +9.2 ‐17.3% Share of p profits / ((losses)) of associa
Slide 27: 2012 Outlook
2012 OUTLOOK €m 2011 2012 Var. Consolidated revenue 2,620 2,620 = ‣Stabilisation of programming costs for the TF1 channel: ΀930 million on average for 2012 and 2013 A CAUTIOUS FORECAST IN AN INCREASINGLY UNCERTAIN ENVIRONMENT 27
Slide 28: Television has robust fundamentals for the future
TELEVISION HAS ROBUST FUNDAMENTALS FOR THE FUTURE ` Television consumption has risen continuously in 2012 ` Major live events continue to attract big audiences ` TV campaign performance confirmed ` Digital extends the TV offer and boosts its value TELEVISION MORE THAN EVER IS AT THE HEART OF THE BUS
Slide 29: TF1 continues to adapt its business model
TF1 CONTINUES TO ADAPT ITS BUSINESS MODEL… 2008‐2011 2012‐... ` Optimisation plan, phase 1: €155 m in ` Optimisation plan, phase 2, aimed at: recurring savings o reducing payroll o reduced structural costs o increasing flexibility in producer contracts o optimised programming costs o reviewing stock
Slide 30: Without neglecting growth opportunities
... WITHOUT NEGLECTING GROWTH OPPORTUNITIES A STRONGER FREE‐TO‐AIR OFFER CONTINUED DEVELOPMENT OF PAY OFFER • Launch of HD1 in December 2012 DIGITAL, AT THE HEART OF OUR BUSINESSES 30
Slide 31: The most comprehensive offer on the market
THE MOST COMPREHENSIVE OFFER ON THE MARKET Laptops Web user Mobile Smartphones TV viewer T bl t Tablets Mobile web user Sharing (Facebook, Twitter, etc.) Consumer At home Collective emotion Games / Licences (living room screen) Shows / Music Individual experience p (connected TV, PC, IPTV) e‐commerc
Slide 32: Appendixes
APPENDIXES 32
Slide 33: TF1, a European leader
TF1, A EUROPEAN LEADER Gap between each Audience share (in%) of European channels, leaders in their respective national territories in H1 2012 (*) leader and its challenger Leader TF1 22.7 7.9 pts Challenger France 2 14.8 Leader BBC 1 20 5 20.5 4.8 pts Challenger ITV1 15.7 Leader RTL 13.0 0.8 p pt C
Slide 34: 4 years of transformation
4 YEARS OF TRANSFORMATION IN 2008 IN 2011 ‣ One O ffree‐to‐view t i channel h l ‣ An A unrivalled i ll d multi‐channel lti h l offer ff ‣ Dependent pay‐to‐view channels ‣ A secure pay‐to‐view business ‣ Almost no digital presence ‣ High‐performance digital offer ‣ Diversifications losing steam ‣ Rat
Slide 35: The group is developing different sales modes
THE GROUP IS DEVELOPING DIFFERENT SALES MODES FEE‐BASED SERVICES PAY SERVICES AND AND PRODUCTS PRODUCTS FREE SERVICES 35
Slide 36: A true multimedia advertising agency
A TRUE MULTIMEDIA ADVERTISING AGENCY ‣ A 360° advertising agency present in all media, addressing all targets: POWER EMERGENCE TV AFFINITY TARGETING THEME CHANNELS PROXIMITY TRAFFIC RADIO PROXIMITY INTERACTIVITY WEB ONE TO ONE MOBILITY MOBILE / TABLET IPTV CUSTOMISATION INTERACTIVITY EMERGENCE DIFFE
Slide 37: Evolution of the advertising sectors
EVOLUTION OF THE ADVERTISING SECTORS 20.3% -3.5% Food 17.3% +7.2% Cosmetics 9.8% +4.7 % Auto-Transport 8.8% +32.4% Retail 6.9% -1.6% Financial Services 5.9% +11.0% g House Cleaning 4.5% -5.6% Telecommunication 4.1% +13.1% Travels 3.4% -6.0% Health 3.1% -14.7% Ad gross revenue : +3.2% Publishing (Jan
Slide 38: Revenue contributions by segment
REVENUE CONTRIBUTIONS BY SEGMENT €m H1 2012 H1 2011 Var. €m Var. % Broadcasting France 1,045.4 1,052.2 ‐6.8 ‐0.6% TF1 SA 716.1 716 1 760.5 760 5 ‐44.4 44 4 ‐5.8% 5 8% Téléshopping 56.5 54.1 +2.4 +4.4% Thematic channels in France 163.3 160.1 +3.2 +2.0% TF1 Entreprises 17.4 16.6 +0.8 +4.8% In house pr
Slide 39: Operating profit contributions by segment
OPERATING PROFIT CONTRIBUTIONS BY SEGMENT €m H1 2012 H1 2011 Var. €m Var. % Broadcasting France 102.1 181.0 ‐78.9 ‐43.6% TF1 SA 63.1 63 1 131.9 131 9 ‐68.8 68 8 ‐52 52.2% 2% Téléshopping 7.0 1.0 +6.0 x7.0 Thematic channels in France 17.8 27.9 ‐10.1 ‐36.2% TF1 Entreprises 1.6 2.6 ‐1.0 ‐38.5% In house
Slide 40: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET ASSETS (€m) 30/06/2012 31/12/2011 Var. €m Total non‐current assets 1 409 2 1,409.2 1 421 8 1,421.8 ‐12 6 ‐12.6 Total current assets 2,016.2 1,932.6 +83.6 Total assets 3,425.4 , 3,354.4 , +71.0 SHAREHOLDERS’ EQUITY AND LIAB. (€m) 30/06/12 31/12/11 Var. €m Shareholders equit
Slide 41: Consolidated cash flow statement
CONSOLIDATED CASH FLOW STATEMENT €m 30/06/12 30/06/11 Var. M€ Operating cash flow 164.4 219.7 ‐55.3 Income taxes (paid)/reimbursed (62.2) (31.7) ‐30.5 Change in operating working capital needs (5.9) (56.2) +50.3 Net cash generated by/(used in) operating activities 96.3 131.8 ‐35.5 Net cash generated
Slide 42: Contacts
CONTACTS Philippe DENERY – CFO IR department pdenery@tf1.fr : d @tf1 f : 33-1 41 41 27 32 Christine BELLIN – Head of Investor Relations : 33-1 41 41 29 10 : cbellin@tf1.fr : comfi@tf1.fr Louis IGONET – Deputy Head of Investor Relations TF1 : ligonet@tf1.fr ligonet@tf1 fr 1 quai du Point du Jour 92 6