Slide 1: Presentation of 2019 Annual Results
PRESENTATION OF 2019ANNUAL 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 2019 Annual Results agenda
M6 GROUP PRESENTATION OF 2019 ANNUAL RESULTS 1. INTRODUCTION 2. OPERATIONS 3. FINANCIAL STATEMENTS 4. OUTLOOK 3
Slide 4: Introduction
INTRODUCTION
Slide 5: Advertising revenue, EBITA and operating margin
Advertising revenue EBITA Operating Margin €1,107.9m €284.4m 19.5% 5
Slide 6: Television, the group's core business, is a growth market
1. INTRODUCTION TELEVISION, THE GROUP’S CORE BUSINESS, IS A GROWTH MARKET DAILY COVERAGE TV 41.3M SVoD AVERAGE PRIMETIME AUDIENCE vs PEAK FOR TELEVISION 4.5M 23M 2.2M 6 Source: Médiamétrie
Slide 7: Television, a highly effective advertising medium
TELEVISION CONTRIBUTES TO 65% OF MEDIA-GENERATED SALES 65% 1. INTRODUCTION TELEVISION, A HIGHLY EFFECTIVE ADVERTISING MEDIUM FOR EVERY EURO INVESTED 4.9 ROI 7 Source: SNPTV study, November 2019
Slide 8: M6 Group is very well positioned with an attractive and powerful line-up
8 CONTENT ACQUISITION & PRODUCTION RADIO TV CONTENT CONTENT BROADCASTING BROADCASTING 1. INTRODUCTION M6 GROUP IS VERY WELL POSITIONED DIVERSIFICATION WITH AN ATTRACTIVE AND POWERFUL LINE-UP
Slide 9: 2019 Highlights
Growth in strong TV brands Acquisition of Lagardère’s TV division 1. INTRODUCTION 2019 HIGHLIGHTS Success of the cinema line-up Value-generating diversification strategy Rollout of synergies Radio Division - M6 9
Slide 10: 2019 Key Figures
2019 KEY FIGURES —
Slide 11: Record results
1. INTRODUCTION - KEY FIGURES RECORD RESULTS KEY FIGURES (€ millions) 2018 2019 excluding Youth TV division +2.4% ALL-TIME 2019 HIGH 1,421.4 1,456.1 +3.8% +0.6% ALL-TIME HIGH 1,107.9 1,170.0 1,177.5 1,072.6 1,067.1 +6.9% +0.5% 266.1 267.2 284.4 -5.1% 181.8 14.7 172.7 5.8 CONSOLIDATED ADVERTISING OTH
Slide 12: Additional contribution of the Youth division promoted revenue and EBITA growth
1. INTRODUCTION - KEY FIGURES ADDITIONAL CONTRIBUTION OF THE YOUTH DIVISION PROMOTED REVENUE AND EBITA GROWTH DESPITE THE INCREASE IN DIGITAL INVESTMENTS TELEVISION RADIO PRODUCTION & OTHER OTHER TOTAL AUDIOVISUAL RIGHTS DIVERSIFICATION +€47.1m* +€34.7m 2019 VS 2018 REVENUE +€4.0m GROWTH -€1.3m -€15
Slide 13: Television Audience Ratings
TELEVISION AUDIENCE RATINGS
Slide 14: 2019: M6, the 2nd largest group on the commercial target
2. TELEVISION - AUDIENCE RATINGS 2019: M6, THE 2ND LARGEST GROUP ON THE COMMERCIAL TARGET FULL-YEAR WRP<50 AUDIENCE SHARES OF THE GROUPS (%) 34,1 33,3 33,0 32,2 32,6 32,7 32,3 32,6 32,6 32,0 32,1 22,8 21,9 22,2 22,3 22,8 21,5 21,2 21,1 20,8 21,3 21,4 20,5 20,4 20,5 20,9 18,5 18,1 17,7 16,5 16,2 16,5
Slide 15: Progress in access prime time
0 2. TELEVISION - AUDIENCE RATINGS PROGRESS IN ACCESS 02 PRIME TIME ONLY EVENING NEWS BULLETIN TO 06 3 WRP<50 AUDIENCE SHARE (%) MONDAY-SUNDAY 7.45PM – 9.10PM POST YEAR-ON- YEAR GROWTH 17 4 08 5 MOST-WATCHED DAILY DRAMA 19.6 % 2ND BEST SEASON EVER FOR WRP<50 15 Source: Médiamétrie
Slide 16: Strength of traditional M6 brands
STRENGTH OF TRADITIONAL 0 2. TELEVISION - AUDIENCE RATINGS M6 BRANDS 01 IN PRIMETIME 25% WRP<50 AND 3.8M FOR ITS 14TH SEASON BEST SEASON FOR WRP<50 IN 6 YEARS 04 2 AUDIENCE SHARE WRP<50 FREE-TO-AIR CHANNELS MONDAY-SUNDAY 15 3 9.10PM – 10.30PM 06 4 BEST SEASON EVER 26% WRP<50 AND 2.8M WRP<50 FOR ITS
Slide 17: Momentum of the M6 channel during the strategic timeslot
2. TELEVISION - AUDIENCE RATINGS MOMENTUM OF THE M6 CHANNEL DURING THE STRATEGIC TIMESLOT THE ONLY MAJOR TRADITIONAL CHANNEL TO POST GROWTH IN THE 7.45PM-10.30PM SLOT 17 Source: Médiamétrie
Slide 18: DTT Audience Ratings
TELEVISION DTT AUDIENCE RATINGS
Slide 19: W9 and 6ter posted year-on-year growth on the commercial target
2. TELEVISION – DTT AUDIENCE RATINGS W9 AND 6TER POSTED YEAR-ON-YEAR GROWTH ON THE COMMERCIAL TARGET 3,0 3,1 3,0 2,9 2018 2019 2,6 2,5 2,6 2,3 2,2 2,3 1,9 1,8 1,8 1,8 1,6 1,7 1,6 1,6 1,5 1,5 1,7 1,4 1,2 1,4 1,4 1,3 4+ AUDIENCE SHARE (%) 1,1 1,2 1,1 1,1 1,0 0,7 0,7 0,8 4,4 4,1 3,8 3,9 3,3 3,3 3,2 3,1
Slide 20: W9 and 6ter among the top DTT channels for WRP<50
2. TELEVISION – DTT AUDIENCE RATINGS W9 AND 6TER AMONG THE TOP DTT CHANNELS FOR WRP<50 GULLI STRONGER THAN EVER WITH YOUNGER VIEWERS +55% No.1 channel viewers year-on-year nationally with Most powerful reality TV range on DTT 3.6%WRP<50 children during the day (16.4% 1.1M audience share 4-10 years 6
Slide 21: Pay Channels Audience Ratings
TELEVISION PAY CHANNELS AUDIENCE RATINGS
Slide 22: Paris Première and Téva, 2 of the 3 most powerful pay channels
2. TELEVISION – PAY CHANNELS AUDIENCE RATINGS 2019: PARIS PREMIÈRE AND TÉVA, 2 OF THE 3 MOST POWERFUL PAY CHANNELS TÉVA STILL THE CLEAR LEADER FOR PAY-TV CHANNELS PARIS PREMIÈRE AT A RECORD LEVEL IN THE 4+ CATEGORY AMONG FEMALE VIEWERS N°1: the most watched pay channel with almost N°1: for WRP<50 fo
Slide 23: 6play Audience Ratings
TELEVISION 6PLAY AUDIENCE RATINGS
Slide 24: High viewing figures on 6play
27M registered accounts 2. TELEVISION - 6PLAY 110M videos AUDIENCE RATINGS viewed per month => up10% year-on-year HIGH VIEWING FIGURES Average viewing time ON 6PLAY 1hr 15 Leader in replay services Attractiveness of ’s advertising targeting service 24 Sources: Médiamétrie et Heartbeat
Slide 25: Radio Audience Ratings
RADIO _ AUDIENCE RATINGS
Slide 26: Radio Division: leading private radio group
AUDIENCE SHARE BY PRIVATE GROUP (%) +4.3pps Competitive advantage over challenger 18.5 14.2 12.5 2. RADIO - AUDIENCE RATINGS 9.7 RADIO DIVISION: 6.2 LEADING PRIVATE RADIO GROUP NRJ Group TF1 Publicité Radios Lagardère RMC (4 stations) (131 stations + (3 stations) M Radio) Extension of Group’s lead o
Slide 27: Relevance of the positioning of the Radio Division's stations
2. RADIO - AUDIENCE RATINGS RELEVANCE OF THE POSITIONING OF THE RADIO DIVISION’S STATIONS 12.3% audience 3.4% audience 2.9% audience share share share among the over 13s among the over 13s among the over 13s N°1 radio station in France N°2 music station for the 25-49 age N°2 music station among uppe
Slide 28: Advertising Market
ADVERTISING MARKET
Slide 29: M6 Group advertising revenue achieved a record high
2. ADVERTISING MARKET M6 GROUP ADVERTISING REVENUE +4.0% ACHIEVED A RECORD HIGH TV = 894.9 895.2 930.4 M6 GROUP NET ADVERTISING REVENUE (€ MILLIONS) 2018 2019 2019 Excluding +3.8% Youth TV division 1,107.9 +3.0% 1,067.1 OTHER OPERATIONS 177.5 172.2 2018 2019 2018 2019 29
Slide 30: Sales house strengthened its position in the TV market
CHANGE IN NET TV ADVERTISING MARKET SHARE OF M6 GROUP'S CHANNELS AND ASSOCIATED SERVICES SINCE 2017 (%) 2017/2018 INTEGRATION OF 2019 2. ADVERTISING MARKET OUTPERFORMANCE OF M6 GROUP’S TRADITIONAL ACTIVITIES SALES HOUSE STRENGTHENED ITS POSITION IN THE +1.3pps TV MARKET 27.4%* 26.4% 26.1% 30 * M6 es
Slide 31: TV & Radio Key Figures
TV & RADIO - KEY FIGURES
Slide 32: Television key figures
2. TELEVISION KEY FIGURES Additional REVENUE (€ M) EBITA (€ M) contribution of the Youth Division +4.9% 1,013.6 Stability of organic 966.5 advertising revenue +4.5% Decrease in 223.6 programming costs 214.0 Digital investments 2018 2019 32
Slide 33: Radio key figures
2. RADIO KEY FIGURES REVENUE (€ M) EBITA (€ M) +2.4% Growth in advertising 167.0 171.0 revenue +7.6% 30.1 28.0 Continued implementation of synergies associated with the integration into M6 Group 2018 2019 33
Slide 34: Production & Audiovisual Rights
PRODUCTION & AUDIOVISUAL RIGHTS
Slide 35: Production & audiovisual rights: success of 2019 cinema line-up
15.9m 2. PRODUCTION & CINEMA AUDIOVISUAL RIGHTS SUCCESS OF 2019 LINE-UP ADMISSIONS IN FRANCE (VS 15.7M REVENUE (€ M) IN 2018) 2018 2019 1.4M 1.2M ADMISSIONS ADMISSIONS -1.7% 76.5 75.1 EBITA (€ M) +71.1% 14.8 1.2M 2.8M ADMISSIONS ADMISSIONS 8.7 35
Slide 36: Other Diversification
OTHER _ DIVERSIFICATION Of Entadis, OA, F A,
Slide 37: Growth in EBITA despite end of the M6 Mobile contract
2. OTHER DIVERSIFICATION GROWTH IN EBITA DESPITE END OF THE M6 MOBILE CONTRACT CONTRACT DECLINE IN REVENUE, INCREASE IN REVENUE SCOPE ENDED INCREASE IN EBITA AND EBITA IMPACTS 2018 2018 pro-forma 2019 30 JUNE 2019 REVENUE (€ M) -1.1% REVENUE Momentum down in cashback 211.1 198.2 196.1 €10.1m Signifi
Slide 38: Financial Statements
FINANCIAL STATEMENTS
Slide 39: Condensed consolidated statement of comprehensive income
2019 / 2018 change M6 Group 31 December 2018 31 December 2019 (€ millions) Revenue 1,421.4 1,456.1 34.7 Other operating revenues 14.7 5.8 (8.8) Total operating revenues 1,436.1 1,461.9 25.8 Materials and other operating expenses (711.0) (715.8) (4.8) Personnel costs (including profit sharing plan co
Slide 40: Condensed balance sheet
2019 / 2018 change M6 Group 31 December 2018 31 December 2019 (€ millions) Goodwill 193.6 366.5 172.9 Non-current assets 363.0 386.1 23.0 Current assets 820.0 859.6 39.5 3. FINANCIAL STATEMENTS Cash and cash equivalents 132.8 45.9 (86.9) CONDENSED Assets held for sale(1) - 49.2 49.2 BALANCE SHEET TO
Slide 41: Cash flow statement
2019 / 2018 31 December 31 December M6 Group change 2018 2019 (€ millions) Self-financing capacity from operations 364.8 399.2 34.4 Operating WCR movements (22.9) (28.4) (5.5) Income tax (61.2) (94.0) (32.8) Cash flow from operating activities 280.8 276.7 (4.1) Cash flow from investment activities (
Slide 42: Proposed dividend of €1.00 per share
3. FINANCIAL STATEMENTS PROPOSED DIVIDEND OF €1.00 PER SHARE €2.5 15.7% 17% 15% €2.0 13% 11% €1.00 €1.5 8.7% 9% 7.1% 7.2% 6.0% 7% 5.5% 5.5% 5.4% €1.0 5.1% 4.4% 4.8% 5% 3% €0.5 €1.00 €1.00 €1.00 €1.00 82% 84% €0.85 76% ** €0.85 96% €0.85 87% €0.85 93% €0.85 €0.95 76% 70% 72% 73% 1% €0.0 -1% 2010 2011
Slide 43: Outlook
OUTLOOK
Slide 44: 2020 challenges: strengthen our core business
Increase the Implement the power of our synergies plan media with the Youth TV division 4. OUTLOOK 2020 CHALLENGES: STRENGTHEN OUR Successfully Complete the CORE BUSINESS launch Salto sale of iGraal Rebalance the competition Continue the conditions Radio/TV between integration international and Fren