Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — Groupe M6 — FY2016 Earnings Presentation
59 slides from Metropole Television Sa's earnings presentation, February 2017
Slide 1: Presentation of Annual Results 2016
PRESENTATION OF ANNUAL RESULTS 2016
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 solicitation performance, are forward-looking statements that to buy or sell m6 group shares. are potentially
Slide 3: Presentation of 2016 annual results agenda
m6 group presentation of 2016 annual results 1. introduction 2. television 3. production and audiovisual rights 4. diversification 5. financial statements 6. outlook 7. appendices
Slide 4: Introduction
"INTRODUCTION AL
Slide 5: Relevance of group strategic model
introduction relevance of group strategic model CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES CONTENT BROADCASTING DIVERSIFICATION 5
Slide 6: 2016 Highlights
2016 HIGHLIGHTS 6
Slide 7: Historic audience figures
2016 highlights 1. historic audience figures 22.2% audience share wrp<50 7 1
Slide 8: Historic audience figures
2016 highlights 1. historic audience all-time record audience since the creation figures of the channel with the audience for the portugal/france final audience share wrp<50 th the 5 largest in the history of french tv 22.2% 8
Slide 9: Historic audience figures
2016 highlights 1. historical audience 3.1 m viewers figures most-watched political programme of the new season among under 50 year-old audience share wrp<50 viewers (excluding debates) 22.2% 9
Slide 10: Historic audience figures
2016 highlights 1. historical audience figures audience share wrp<50 22,2% winning return 3.3 m viewers 10
Slide 11: Record EBITA due to M6 Mobile contract compensation
2016 highlights 2. record ebita due to non-recurring contribution of the m6 mobile contract Contractual 50m compensation received € 11
Slide 12: Two new acquisitions
2016 highlights 3. two new acquisitions CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES CONTENT BROADCASTING DIVERSIFICATION 12
Slide 13: Historical results: advertising revenue and EBITA
advertising revenue €853.3m all-time high 2016 HIGHLIGHTS advertising market share of free-to- air channels 24.3% all-time high historical results ebita €245.5m all-time high 13
Slide 14: Key figures 2016
2016 — KEY FIGURES 2m
Slide 15: Strong increase in results
key figures key figures (€ millions) strong increase in 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 p
Slide 16: Momentum of TV and impact of M6 Mobile
key figures momentum of tv and impact of m6 mobile other television production & audiovisual rights diversification total +€33.8m +€28.9m 2016 vs. 2015 revenue growth +€3.9m -€8.8m +€46.5m +€45.3m 2016 vs 2015 +€3.6m ebita growth +€1.4m -€6.2m 16
Slide 17: Television: Audience ratings
2 TELEVISION AUDIENCE RATINGS
Slide 18: M6 Group gained ground in 2016
television - audience ratings 2015 m6 group gained ground in 2016 2016 audience ratings of free-to-air channels -0.4pp -0.6pp 27.8 29.2 27.4 28.6 +1.7pp +0.5pp -0.1pp 4+ audience 13.6 14.1 11.3 13.0 share (%) 5.6 5.5 other free-to-air channels +0.1pp +0.9pp 32.0 32.1 -1.0pp 21.3 22.2 +1.2pp Wrp-50 1
Slide 19: 2016: M6 narrowed the gap with F2 and TF1
television - audience ratings 2016 : m6 narrowed the gap with f2 and tf1 full-year audience shares (4+) of traditional channels (in %) 31.6 30.7 27.2 26.1 24.5 23.7 22.9 22.7 22.8 21.4 20.4 19.2 18.1 17.5 16.7 16.1 14.7 14.9 14.9 14.1 14.0 14.1 14.3 13.3 13.4 11.8 10.7 10.8 11.2 10.6 10.1 9.9 10.2 1
Slide 20: On the commercial target, M6 never so close to TF1
television - audience ratings 2016: on the commercial target, m6 has never been so close to tf1 change in m6 / tf1 channel audience share ratio among wrp-50 67% 71% 64% 64% 64% 66% 59% 57% 58% 54% 54% 54% 55% 52% 53% 52% 51% 50% 47% 48% 46% 40% 38% 36% 34% 25% 27% 22% 1989 1990 1991 1992 1993 1994 1
Slide 21: Progress in access prime time
television - audience ratings m6 : progress in access prime time 1.2 m 19% wrp-50 4+ and wrp–50 access prime time audience shares (5.30pm – 7.30 pm) +3.3pp 1.8 m 19.0 21% wrp-50 15.7 m6 leader among +1.5pp < 50 and wrp–50 viewers 10.7 9.2 4+ wrp-50 1.1 m 2015 2016 (exc. euro) 20% wrp-50 21 source: m
Slide 22: Numerous prime time successes
television - audience ratings m6: numerous prime success time successes of strong brands 4.8 m 32% wrp-50 m6 gained ground year on year at prime time (9pm – 10.30pm time slot) +2.6pp successful 20.2 new 17.6 programmes +0.9pp 3.9 m 22% wrp-50 11.8 12.7 +0.2pp 3.0 3.2 aud (m°) 4+ wrp-50 powerful new
Slide 23: Three largest audiences in its history with the Euro
television - audience ratings with the euro, m6 achieved its three largest audiences in its history top 10 m6 audiences since its creation (millions of viewers) portugal-france-final sun.10/07/2016 20.8m france-iceland sun.03/07/2016 17.2m switzerland-france sun.19/06/2016 13.5m france-italy tue.17/
Slide 24: Television: DTT audience ratings
TELEVISION DTT AUDIENCE RATINGS
Slide 25: W9 and 6ter among leading DTT channels
television – dtt audience ratings 2015 w9 and 6ter among the leading dtt channels on the 2016 commercial target 3.4 3.0 3.4 3.1 2.62.5 2.22.3 1.9 2.0 1.9 1.8 1.8 1.8 1.7 1.7 1.61.6 1.3 1.4 1.2 1.1 1.2 1.2 1.1 0.9 1.00.9 0.8 0.7 0.6 0.60.8 0.6 4+ audience share 0.1 0.3 (%) 4.0 4.1 3.8 3.8 3.8 3.6 3.5
Slide 26: Success of W9 in access and prime time
television – dtt audience ratings success of w9 in access and prime time solid ratings very strong 13% 4+ / for w9 in performance access in sports 28% programmes men<50 4% 4+ / 7% wrp<50 best range of magazines on powerful dtt and cinema success of offering new documentaries 9% wrp<50 0.7 m 26
Slide 27: Puissance TNT is the leading DTT service
television – dtt audience ratings PUISSANCE TNT IS THE LEADING DTT SERVICE 2016 audiences (wrp-50) +0.3pp 6.2% -0.1pp +0.2pp 4.0% 3.8% the leading DTT advertising service 27
Slide 28: 6ter had a remarkable year
a powerful succession of programmes throughout the day, all year long progress at access with series and reality tv television – dtt audience ratings presence of cinema (success of US 2016: 6ter had a blockbusters) and remarkable year made-for-tv films (up 0.3pp 4+) excellent performance for origina
Slide 29: Television: Cab Sat audience ratings
TELEVISION CAB SAT AUDIENCE RATINGS
Slide 30: Paris Première and Téva among best pay channels
television – cab sat audience ratings in 2016, paris première and téva rank among the best pay channels best-known pay channel among the general Top ranked channel among wrp-50 public* best year for 4+ / wrp-50 since 2012 best year ever among the general public 2016 nationwide audience 2016 nationwi
Slide 31: Television: Advertising market
TELEVISION ADVERTISING MARKET
Slide 32: Television retained its rank in multimedia advertising market
television - advertising market television retained its rank in a multimedia advertising market up 1% in 2016 estimate of the 2016 multimedia advertising market by media € billions % change - initial irep estimates +1% 10.6 +0.7% -7% +4% 3.3 +14.5% +3% 2.3 2.3 -1% 1.2 1.2 0.7 total multimedia televi
Slide 33: M6 Group advertising revenue reached 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 revenues (€ millions) +4.8% 853.3 813.9 +16.3% 60.4 other 52.0 activities internet 2015 2016 2015 2016 33
Slide 34: Advertising revenue strong growth in Q4 2016
television - advertising market +5.4% m6 group advertising revenue generated strong growth in 235.3 Q4 2016 223.3 free-to-air channels m6 group net advertising revenues 2015 2016 (€ millions) +6.2% 255.3 240.4 +17.0% 20.0 other 17.1 activities internet 2015 2016 2015 2016 34
Slide 35: Advertising market share increase to all-time high
television - advertising market 2009/2015 m6 group free-to-air channels saw their advertising 2016 market share increase by 0.8 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 24.3% 23.7% 23.3% 23.5% 22.3% 22.4
Slide 36: A high-performance TV division
television - advertising market a high-performance tv division tv ebita 2016 vs. 2015 (€ millions) +26.4 -33.4 +13.0 -2.4 159.3 155.7 2015 free-to-air tv advertising programming costs of free- broadcasting costs other costs (mainly employee 2016 revenue to-air savings) (impact on ebita) channels 36
Slide 37: Production and audiovisual rights
3 PRODUCTION AND AUDIOVISUAL RIGHTS
Slide 38: 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 39: Diversification
4 DIVERSIFICATION
Slide 40: M6 Mobile: contribution to EBITA
diversification m6 mobile: gradual termination of marketing €69.8 million contribution to ebita year-on-year increase of gradual transfer of m6 mobile customers to orange services €45.2m mainly due to compensation paid as a result of termination of marketing 40
Slide 41: M6 Web excl. M6 Mobile: online video growth
DIVERSIFICATION m6 web excl. m6 mobile: growth in online video advertising revenues catch up the group continues to develop its digital platform revenue* (€ m) ebita* (€ m) 15m 1.5 bil. more than videos viewed in 2016 62.4 69.3 registered users (up 54% year on year) 10.0 13.5 294m 2015 2016 2015 201
Slide 42: Ventadis: business volume maintained
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 43: 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) 2016/2017 7th failed to (at 21/02/2017) qualif
Slide 44: Financial statements
5 FINANCIAL STATEMENTS
Slide 45: 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 46: 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 1,190.2 1,261.3 TOTAL ASSETS 71.0 condensed balance sheet Group
Slide 47: 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
Slide 48: Dividend maintained at €0.85 per share
financial statements dividend maintained at €0.85 per share €2.5 17% 15.7% 15% €2.0 13.1% 13% 11% €1.50 €1.00 €1.5 8.7% 9% 7.2% * 5.5% 5.1% 5.5% 5.4% 7% 4.7%* €1.0 4.8% 5% €1.00 82% €1.00 3% €0.5 €0.85 7 €0.85 79% 9% €1.00 82% €1.00 84% 84% €0.85 76%** €0.85 76%** €0.85 96% €0.85 €0.85 87% €0.85 87%
Slide 49: Outlook
6 OUTLOOK
Slide 50: 2017 challenges: consolidate audience ratings
outlook 2017 challenges CONTENT BROADCASTING consolidate audience ratings 50
Slide 51: 2017 challenges: continue to invest in content
outlook 2017 challenges CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES continue to invest in content 51
Slide 52: 2017 challenges: invest in digital
outlook 2017 challenges Invest in digital 52
Slide 53: Proposed acquisition of RTL Group's French radio division
outlook 2017 challenges CONTENT ACQUISITION & PRODUCTION DIGITAL ACTIVITIES CONTENT BROADCASTING RADIO Proposed acquisition of rtl group’s french radio division DIVERSIFICATION 53
Slide 54: 1987-2017: strong shareholder return
outlook 1987-2017: strong shareholder return Prior year cumulative dividend Dividend paid during the year €2.6 billion €2.3 cumulative dividend billion CUMULATIVE NET PROFIT 54
Slide 55: Appendices
7 APPENDICES
Slide 56: Analytical consolidated income statement
(€ millions) 31/12/2016 31/12/2015 2016 / 2015 change (€ millions) % TV Advertising revenue - Free-to-air channels 813.2 780.5 32.7 4.2% Revenue - Other operations 42.7 41.6 1.1 2.6% EBITA 159.3 155.7 3.6 2.3% Production and Audiovisual Rights Revenue 97.6 93.6 3.9 4.2% EBITA 8.4 7.0 1.4 19.5% Diver
Slide 57: Segment contribution analysis
appendices segment contribution analysis 31/12/2016 31/12/2015 2016/2015 change profit from profit from profit from business recurring business recurring business recurring external external external television (€ millions) segment total revenues revenues operations segment total revenues revenues o
Slide 58: Analytical presentation of free-to-air TV segment
2016/2015 change (€ millions) 31/12/2016 31/12/2015 (€ millions) % external advertising revenues 792.9 762.0 31.0 4.1% appendices analytical intra-group advertising revenues 4.7 10.5 (5.7) -54.8% presentation of segment advertising agency costs, operating taxes and broadcasting costs (178.3) (186.0)
Slide 59: Questions & Answers
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