Slide 1: KBC Brussels, 27 June 2018
KBC Brussels, 27 June 2018
Slide 2: Agenda
Agenda 1 2 3 2018 Q1 2018 Full-year Business & strategy 2016 highlights highlights update Outlook 2
Slide 3: Q1 2018 Highlights
Q1 2018 Highlights Good start into 2018 despite negative FX impact and one-off costs +0.8% € 1,416 million 112% Revenue Cash conversion EBITA Margin EBITDA Margin 19.3% 18.3 € 259 million -1.9% € 111 million EBITDA € 210 million -3.7% Net profit EBITA 3
Slide 4: Agenda
Agenda 1 2 3 2018 Q1 2018 Business & strategy Business highlights update update Outlook 4
Slide 5: Mediengruppe RTL Deutschland
Mediengruppe RTL Deutschland Revenue up driven by growth in advertising FAMILY OF CHANNELS +1.5 to +2.5% 14 to 59, Jan-May 2018 MG RTL 27.8% KEY FINANCIALS : Q1 2018 TV ad market In € million REVENUE EBITDA Others 11,0% 23,8% 6,5% 534 519 Market 10,3% ARD-III leader 7,1% 167 169 8,0% ARD 24,5% 8,8%
Slide 6: Groupe M6
Groupe M6 Good advertising revenue development; one-offs impact EBITDA FAMILY OF CHANNELS +1.7% Women < 50 responsible Groupe M6 21.2% KEY FINANCIALS : Q1 2018 TV ad market for purchases, Jan-May 2018 In € million REVENUE EBITDA Others 14.7% 34.0% 6.5% 360 360 Very well managed #2 77 76 France 3 4.2
Slide 7: RTL Nederland
RTL Nederland TV ad market shows positive development FAMILY OF CHANNELS KEY FINANCIALS : Q1 2018 +7.4% 25 to 54, Prime time, RTL Nederland 28.5% (in € million) TV ad market Jan-May 2018 REVENUE EBITDA Others 26.5% 16.8% 110 Clear 105 market 11.7% leader 24.5% 6 20.5% 1 Pubcaster Talpa TV 2017 2018
Slide 8: FremantleMedia
FremantleMedia Revenue negatively impacted by FX: organic growth rate of +7% KEY FINANCIALS : Q1 2018 In € million REVENUE EBITDA Business update ▪ ITV drama, Beecham +19 (20) House, under development 271 +1 271 Acquisitions Net production growth FX ▪ Charité sold to Netflix 15 ▪ Slippage of “Picnic
Slide 9: Digital
Digital Growth in video views and revenue continues VIDEO VIEWS RTL GROUP : Q1 2018 DIGITAL REVENUE : Q1 2018 In billion In € million +38.9% +7% 124,3 190 178 89,5 120 58,4 Q1 2016 Q1 2017 Q1 2018 Q1 2016 Q1 2017 Q1 2018 8.4% % of total RTL revenue 13.5% 9
Slide 10: Adapting the business model: more offers for a more connected consumer
Strategy update Adapting the business model: more offers for a more connected consumer LOCAL GLOBAL B2B B2C New TV Offers LINEAR ▪ Platform agnostic consumer demand OTT Emergence of new OTT TV platforms LINEAR TV A and channel brands ▪ Emergence of new LINEAR and digital players CATCH- competing aga
Slide 11: Enhancing our local TV on-demand offers…
Strategy update Enhancing our local TV on-demand offers… Local +80% +40% +78% paid sub. registered paid sub. growth user growth growth Hybrid “Freemium” approach Exclusive content (illustrative) Pre-TV and archive 7+ day TV Hybrid BASIC TV on-demand Low ad load PREMIUM business ON-DEMAND Upsell HD q
Slide 12: ...accelerated by more group-wide cooperation
Strategy update ...accelerated by more group-wide cooperation Local +80% +40% +78% paid sub. registered paid sub. growth user growth growth 1 Grow local content investments with digital first originals Key priority across the 2 Develop hybrid business model with strong consumer appeal Group Utilisin
Slide 13: Drama becoming a cornerstone for FremantleMedia
Strategy update Drama becoming a cornerstone for FremantleMedia Warrior The Rain International Drama to be 21% of revenues in 2019 Acquitted s2 Dicte s3 vs. 6% in 2015 My Brilliant Friend The Young Pope American Gods Picnic at Hanging No Offence s2 Baron Noir s2 Rock Acquitted s1 Doctor Doctor Soaps
Slide 14: Multi-platform networks: RTL Group is well placed
Strategy update Multi-platform networks: RTL Group is well placed RTL Group MPNs have grown … and now command a 15%+ views by 54% yoy to 385bn… share of global YT video views Global views* RTL Group % of 2017 YT video views * #1 globally 337bn #1 in beauty 3% & fashion 27bn 3% 19% 50% #1 in Europe 1
Slide 15: Total video: strong capabilities within European footprint
Strategy update Total video: strong capabilities within European footprint Leading Pan-EU footprint,... … premium/trusted inventory… …and ad-sales / tech FTA TV SALES KEY PRIORITIES Adjust TV pricing (e.g. higher Educate clients and tap into CPMs) in light of reach decline new pan-EU budgets Leverag
Slide 16: Total video: ad-stack positioned in growth segments alongside key clients
Strategy update Total video: ad-stack positioned in growth segments alongside key clients Linear Programmatic Addr. Linear Addressable OTT & Online Contextual OTT Linear Addressable Broadcast TV TV TV STB TV (HbbTV) Video advertising advertising Audience-based linear TV buying HbbTV addressable TV (
Slide 17: Agenda
Agenda 1 2 3 2018 Q1 2018 Business & strategy highlights update Outlook 17
Slide 18: Confirming outlook for 2018
RTL Group Confirming outlook for 2018 2018 Guidance – Growth Rates REVENUE OUTLOOK Revenue expected to grow In % and € million 1 moderately, predominantly driven by FremantleMedia and digital +2.5% Low 6,532 +5.0% High 6,692 EBITDA OUTLOOK In % and € million 1,464 EBITDA 2018 EBITDA expected to be 1
Slide 19: 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