3, 4 & 5 th October 2016 Agenda 1 2 3 2016 TV stands for - PowerPoint PPT Presentation

UBS: United States 3, 4 & 5 th October 2016

Agenda 1 2 3 2016 TV stands for Outlook 2016 “Total Video” Business update 2

Mediengruppe RTL Deutschland Good audience shares despite sports events FAMILY OF CHANNELS MG RTL 27.9% 14 – 59, YTD August 2016 ACCESS PRIME TIME PRIME TIME (17 – 20h) 14 – 59 (in %) (20 – 23h) 14 – 59 (in %) 11.9% +4.2pp +4.7 pp 22.1% Others 6.6% 12.4 12.2 9.4% ARD III 6.8% 8.0 7.7 9.0% ARD 25.1% 9.1% ZDF P7S1 RTL Sat 1 RTL Sat 1 Source: AGF in cooperation with GfK Note: MG RTL De including RTL II and Super RTL 3

Mediengruppe RTL Deutschland With solid start into new season for local shows : US fiction difficult FAMILY OF CHANNELS MG RTL 29.8% 14 – 59, 1-27 Sept. 2016 12.3% 23.5% Others Dance Dance Dance 7.3% 14-59: 12.6% vs. 11.9% 14-49: 15.2% vs. 12.8% Dance Show (PT) ARD III 10.2% 6.7% 7.1% ARD 7.4% 25.5% Dragons‘ Den ZDF P7S1 14-59: 15.2% vs. 6.6% 14-49: 18.4% vs. 6.7% Reality Show (PT) Source: AGF in cooperation with GfK Note: MG RTL De including RTL II and Super RTL 4

Mediengruppe RTL Deutschland Market growth opportunities remain TV’S AD SHARE IN MEDIA MIX 2015 In % of total ad spend 41% 38% Growth 17 29% potential 29% 14 26% 5 5 24% 2 GER NED UK FRA ESP USA Print ad share 37% 23% 16% 18% 18% 14% Source: IHS Screen Digest for 2015 5

Groupe M6 Continues to demonstrate strong audience share performance FAMILY OF CHANNELS GROUPE M6 22.0% Women < 50 resp. for purchases YTD August 2016 16.0% Others 34.1% 6.0% France 3 4.0% 31.0% 8.9% France 2 Groupe TF1 Source: Médiamétrie Groupe M6: M6, W9 and 6ter; TF1 Group: TF1, TMC, NT1 and HD1 6

RTL Nederland YTD audience shares impacted by sports but good start into new season FAMILY OF CHANNELS RTL Nederland 31.2% 20 – 49, Primetime YTD August 2016 Family Island 17.7% 22.0% Others Dance, Dance, Dance 13.5% 26.9% 19.9% Expeditie Robinson Pubcaster SBS Source: SKO 7

Agenda 1 2 3 2016 TV stands for Outlook 2016 “Total Video” Business update 8

Overview ‘Total Video’ describes the dynamic expanding TV universe TV as we know it … … evolving to Total TV … … as an integrated eco -system Non-linear Linear Linear Linear Data Content Ad tech Now non-linear offers grow in quantity TV landscape has been fragmenting Digital tech, data and new types of and quality, moving closer to generation by generation content are embedded in Total TV traditional TV as TV-like offers 9

Viewing time ‘Total Video’ is currently not fully measured Total video viewing time Minutes per user per day / estimated Germany France USA Online short-form Online long-form (SVOD/Catch-up TV) 328m Time-shifted (DVR) Online long-form Linear TV 249m 11 232m +16min “Leakage” can 25 9 +10min only be estimated – TV +5min 6 Linear Time- measurement 10 3 29 TV shifted systems only slowly catching 6 13 up 264 Online short-form 210 -5min -4min +3min 224 Vs. 2012 Vs. 2012 Vs. 2012 2015 2015 2015 10 Source: IHS May 2016, user defined as internet user between 18-64 evenly balanced by demographic, age, gender and income

Our strategic priorities across the 4 quadrants Follow the viewers and explore presence in all video segments… Our ambition for … audience 4 1 Long form Continue to Explore Capture growth in total expand family of potential video, regain younger channels and SVOD audiences, prevent catch-up TV / OTT offerings unmeasured viewing offers … advertisers 3 2 Expand our Short form Invest in digital presence in Offer wider scope of first content and MCNs advertising products in brands globally and ‘Total Video’ monetize Lower invest Higher invest 11

Strategic priorities …while investing in key success factors: exclusive content, ad -tech and data Unique content remains Capture growth in essential in a ‘Total Video’ Long form total video, regain universe Invest in content 5 younger audience, business prevent unmeasured viewing Digital technology will be key Build out ad-tech 6 enabler Short form Offer wider scope of advertising Ability to unlock data is going to Extend data skills 7 products in whole be key video universe Lower invest Higher invest 12

Digital first brands We are building digital brands in key verticals… #1 IN #1 IN #1 IN HIP-HOP PRE-SCHOOL KIDS FASHION/BEAUTY Gaming Music Sport News Entertainment Kids Lifestyle Fashion & Comedy & beauty Examples: non-exhaustive Partners 13

Digital first brands … as well as ramping -up our web original content Illustrative examples only RTL Group web original content Purely commissioned for web, excl. branded content Estimate ~2400hrs BBTV incl. YB & 1,764 Stylehaul 1h15 movie on YouTube #1 Pre-school Kids MCN on   FM ~500  75% of budget covered by YouTube product placement  Creating in-house kids content Broadcasters 130  3.3 million views at scale FY 2015 14 Source: Web original content is still a rough estimation, Broadcasters includes web original content from GE, FR, NL

Strategic priorities in content Fremantle is positioning itself in all ‘Total Video’ quadrants  Keep existing hits on B A air Maintain the Long form A Develop the core business  Roll out formats to new territories pipeline and maximize the network  Create new formats Content B  Accelerate the scripted strategy C Short form  Expand across value Build a scalable digital business chain C  Strengthen off- YouTube distribution Higher invest Lower invest  Develop new verticals 15

Strategic priorities in content With a number of talent and M&A deals over the last 12 months Strategic priorities Deals already contributing IP DATE HOLDING # of IP 2 Shows in funded development Jan 2015 25% SCRIPTED Developing the pipeline 3 Shows in production or funded development Sep 2015 51% SCRIPTED Shows in production or funded development 5 Sep 2015 25% Strengthening in UK and US ENTS of new genres: drama and local productions Shows in production or funded development 4 Dec 2015 25% ENTS Dec 2015 25% 1 Show in funded development ENTS Maximising the global network May 2016 25% Wild Blue Media 2 2 & June 2016 25% ENTS new new Dancing Ledge 16

Strategic priorities in content Resulting in a scripted strategy that is showing growth potential Major series American Gods Continued success in non- Wide range of new 1 2 3 and Young Pope progressing English language commissions / developments American Gods (Starz)  First subtitled drama Hard Sun (BBC/Hulu) ever to be aired in the Euston Films’ first commission.   Casting for major roles US In pre-production complete  Highest rated subtitled Wentworth (SoHo Aus)  Filming started, launch in drama in UK history 2017  S4 launching, two more commissioned  Amazon Prime deal just #1 in the Scandinavia  2 international remakes  signed  Season 2 in development Picnic at Hanging Rock The Young Pope (HBO/Sky/Canal+) (Foxtel) Season 2 in production  FM Australia adaptation of 1970  Paolo Sorrentino mini-   UK adaptation in series starring Jude mystery film development (Euston) Law and Diane Keaton Ruby King (ITV)  Produced by Wildside  Successful launch Euston Films legal drama  season on Canal+  Launches this October  At script stage with Graham Mitchell following special 2 part  Second season Baghdad Central (C4) premiere at Venice Film commissioned Festival in September  Euston Films post-war Iraq drama At script stage with Stephen Butchard  17

Ad-tech Offering publishers ‘Total Video’ monetisation capabilities at scale Demand-side Ad- Supply Side Advertiser Publisher platform (DSP) server platform (SSP) Multi-screen delivery / ad-serving SSP / Yield optimisation Booking, reporting and forecasting tools 1,300 Addressable TV (Connected TV / HbbTV) PUBLISHERS Cross-screen optimisation GLOBALLY Programmatic ad sales for linear TV  Expansion and roll-out in Europe and Asia Strategic  Grow premium private market places goals  Building fully integrated ad stack 18

Agenda 1 2 3 2016 TV stands for Outlook 2016 “Total Video” Business update 19

RTL Group Outlook for 2016: raising EBITA guidance Revenue expected to grow 1 moderately , in line with previous guidance Reported EBITA now expected to show slight growth – raised 2 guidance following strong H1 2016 20