Entertain. Inform. Engage.
AGENDA ⁄ HIGHLIGHTS ⁄ GROUP FINANCIALS ⁄ OPERATIONS ⁄ STRATEGY & OUTLOOK Entertain. Inform. Engage.
Highlights PROGRESS SS ACR CROSS SS ALL TH ALL THREE S STR TRATE TEGIC C PRIORITI TIES Higher audience and TV advertising 1 market shares in Germany and France Strong growth of content (+12.6%) and 2 streaming revenue (+46.7%) 3 New alliances and partnerships 3
Highlights REVE VENUE A AT T ALL ALL-TIM IME H HIGH IGH, P PROF OFIT IT U UP P 10 PER R CENT organic 1 €6,651m +2.2% +3.2% Revenue: Adjusted Margin: 17.4% €1,156m -0.6pp -1.3% EBITA 2 : Profit for €864m +10.1% the year: 4 Notes: 1. Adjusted for scope changes, the wind-down of StyleHaul and at constant exchange rates, 2. Adjusted for one-off effects related to RTL Group’s Corporate Centre restructuring
Highlights ATTR TRACTI TIVE VE D DIVI VIDEND Full year to In € million December 2019 Profit for the year attributable to RTL Group shareholders 754 DIVIDEND , in € per share 4.00 Dividend, absolute amount 1 614 Dividend payout, in % 2 81% 5 Notes: 1. Based on total share capital less treasury shares held by the Group and liquidity programme, 2. Dividend, absolute amount/adjusted net result, 3. Based on average share price in 2019 (€45.80)
GRO GROUP UP FI FINANCIALS LS
Group Financials HIGH IGH MARGIN GINS, L LOWER R DEBT Full year to Full year to Per cent In € million December 2019 December 2018 change Revenue 6,651 6,505 +2.2 Underlying revenue 6,518 6,317 +3.2 Operating cost base 5,623 5,464 +2.9 Adjusted EBITA 1,156 1,171 (1.3) Adjusted EBITA margin (%) 17.4 18.0 (0.6)pp EBITA 1,139 1,171 (2.7) Net debt (384) (470) – Net debt EBITDA ratio at end of year 0.27 0.34 – 7
Group Financials NET PROF OFIT IT U UP P STRON ONGL GLY Full year to Full year to Per cent In € million December 2019 December 2018 change Reported EBITA 1,139 1,171 (2.7) Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value 87 27 of pre-existing interest in acquiree and earn-out arrangements Impairment of goodwill of subsidiaries, investments accounted for using the equity method, amortisation and impairment of fair value adjustments on acquisitions of (65) (122) subsidiaries Net financial expense (5) (13) Income tax expense (292) (278) Profit for the year 864 785 +10.1 Profit for the year attributable to RTL GROUP SHAREHOLDERS 754 668 +12.9 8
Group Financials HIGH LE LEVE VEL L OF CA CASH SH CO CONVE VERSI SION Full year to Full year to In € million December 2019 December 2018 Net cash flow from operating activities 1,085 873 Add: Income tax paid 334 354 Less: Acquisition of assets, net (220) (178) Equals: Reported free cash flow (FCF) 1,199 1,049 Acquisition of subsidiaries, net of cash acquired (235) (18) Acquisition and disposal of other investments and financial assets, proceeds from the 123 117 sale of investments accounted for using the equity method Net interest paid (23) (12) Transactions with non-controlling interests, treasury shares & deposit with shareholder (69) (25) Income tax paid (334) (354) Dividends paid (538) (686) Cash generated 123 71 EBITA 1,139 1,171 CASH CONVERSION (FCF/EBITA) 105% 90% 9
OP OPERATION ONS
Mediengruppe RTL Deutschland HIGHER AUDIENCE CE AN AND NET T T TV AD V ADVE VERTI TISI SING MAR ARKET T SH SHAR ARES HIGHLIGHTS Key financials ¹ Family of channels In € million 14 to 59, FY 2019 Revenue 28.1% 3 RTL Television with EBITA first increase in audience +0.1% share since 2011 organic 1 -1.8% 10.7% 2,304 2,262 23.7% Others 6.4% Increase of paying subscribers by +45% YoY 4 11.0% MARKET MARKET LEADER LEADER 7.4% ARD-III 723 663 7.8% ARD Cross-media sales house Ad Alliance fosters 25.0% 8.0% outperformance of ZDF P7S1 net TV ad market FY 2018 FY 2019 11 Notes: 1. Including RTL Radio Deutschland and Smartclip, 2. Adjusted for scope changes, 3. Incl. RTL Zwei, Super RTL, incl. pay-TV, 4. End of December 2019 vs. end of December 2018
Groupe M6 HIGHER AUDIENCE CE AN AND NET T T TV AD V ADVE VERTI TISI SING MAR ARKET T SH SHAR ARES HIGHLIGHTS Key financials ¹ Family of channels In € million Family of channels Women < 50 responsible Revenue for purchases, FY 2019 22.8% EBITA Acquisition of Gulli -0.2% further strengthens organic 2 family of channels -1.8% 1,483 14.7% 1,456 Others Salto approval by competition 32.6% 8.1% authorities for upcoming launch in June 2020 STRONG #2 3.7% France 3 287 Development of a leading 275 32.3% streaming technology platform 8.6% France 2 Groupe TF1 Bedrock in 50/50 JV with RTL Group – open to external FY 2018 FY 2019 partners 12 Notes: 1. Gulli consolidated as of September 2019, 2. Adjusted for scope changes
RTL Nederland VIDE DEOLAND ND CONT NTINUE NUES T TO G GROW W RAPIDL DLY HIGHLIGHTS Key financials Family of channels Adults 25 to 54, Prime time, In € million FY 2019 Revenue 29.8% EBITA Strong performance of entertainment formats -1.1% ( The Voice of Holland, organic 1 The Masked Singer ) -1.6% Others 16.9% 18.8% 504 496 Increase of paying 12.9% subscribers by +29% YoY 2 MARKET MARKET LEADER LEADER 28.1% Pubcaster New advertising sales 71 54 23.3% network – open Talpa TV to partners FY 2018 FY 2019 13 Notes: 1. Adjusted for scope changes, 2. End of December 2019 vs. end of December 2018
Fremantle GROWTH TH FUELLE LLED BY BY DRAM AMA P A PERFORMAN ANCE CE HIGHLIGHTS Key financials In € million + 12.6% Strong performance of non-scripted formats 164 1,793 37 + 11.8% 1,592 FX Organic growth 142 127 Revenue EBITA +10.3% 33 Growing drama business: revenue up 36.2% YoY Drama Drama Increased client base with global streaming FY 2018 FY 2019 FY 2018 FY 2019 platforms Drama % of total revenue 19% 23% 14
STRATEGY & OU OUTLOOK LOOK
NEW S STR TRATE TEGIC F C FRAM AMEWORK 1 2 3 HIGHER REACH & ALLIANCES & CORE GROWTH MONETISATION PARTNERSHIPS Creativity & Communications & People Regulation Entrepreneurship Marketing E N A B L E R 16
1 STR TRATE TEGIC C PRIORIT RIORITIE IES – CORE ORE STRENGTHEN MARKET POSITIONS INVEST IN PREMIUM CONTENT Families of channels: Build and extend Content: Invest to leverage for both linear families of channels organically or through and streaming services consolidation in existing footprint Operational efficiency: Assess opportunities FC Group: Develop factual entertainment to optimise cost base and review portfolio formats and reality shows, in close cooperation of assets with RTL broadcasters # 1 or # 2 €3.5bn (€1.5bn Fremantle) in every market 1 content investment p.a. 17 Note: 1. DE, FR, NL, ESP, BE, HR, HU, LU In terms of audience share in respective target groups
2 STR TRATE TEGIC C PRIORIT RIORITIE IES – GROW ROWTH BUILD NATIONAL STREAMING CHAMPIONS TARGETS 2025 ¹ 5m to 7m paying subscribers Investments: Boost investments in content, marketing and technology > €500m streaming revenue Execution : Roll-out via stand-alone services ~ €350m content spend p.a., or national partnerships 4x higher than 2019 EBITA break-even Hybrid model: Combine advertising with premium paid offers 18 Note: 1. Refers to TV Now and Videoland combined
STR TRATE TEGIC C PRIORIT RIORITIE IES – GROW ROWTH 2 INVEST IN TECHNOLOGY AND DATA TARGETS Smartclip: Create advertising technology platform, open to partners Leading European advertising technology platform Bedrock: Create streaming technology platform, open to partners Leading European streaming technology platform European NetID: Expand open log-in standard to new partners 19
STR TRATE TEGIC C PRIORIT RIORITIE IES – GROW ROWTH 2 BUILD LEADING DIGITAL TALENT EXPAND GLOBAL CONTENT BUSINESS NETWORK AND CONTENT STUDIO Divimove: Expand talent management, Creative freshness: Nurture established production of short-form video content, brands and invest in new formats advertising sales and technology & data Portfolio: Diversify and foster client base with global streaming platforms Network: Maximise global network and scale by investing in talent and markets 23 % 34 bn share of drama revenue video views in 2019 1 20 Notes: 1. Including Divimove and United Screens
STRATEGIC GIC P PRIORIT RIORITIE IES – ALLI ALLIAN ANCE CES & S & PAR ARTN TNERSH SHIPS 3 EXPAND ADVERTISING SALES LEVERAGE CONTENT EXPERTISE Ad Alliance: Build one-stop advertising sales Content alliance: Create and exploit houses for cross-media campaigns cross-media content RTL AdConnect: Drive international advertising sales to access large TV and streaming portfolio 99 % € 2.0bn content investment p.a. Ad Alliance’s reach of in Germany German population 21
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