INVESTOR RELATIONS PRESENTATION - SEPTEMBER 2019
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INVESTOR RELATIONS
PRESENTATION
SEPTEMBER 2019
AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY BUSINESS & RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL STRATEGY SHARE 2019
MEDIA WORLD UPDATE
RTL Group at a glance
A LEADER ACROSS BROADCAST, CONTENT AND DIGITAL
Leading commercial Leading global Leading European media
broadcaster in Europe content business company in online video
27.2% #1
35.3% #1 27.5% #1 • Creating around 12,700 hours • Extensive portfolio of national streaming
of programming broadcast champions
• Distributed 200+ territories • Strong online sales houses with
multi-screen expertise
21.4% #2 28.6% #1
Long-form
VOD offers
No. 1 on
YouTube
Top 5 in
28.4% #2 27.1% #2 programmatic
X% # advertising sales
2018 audience share in target group Broadcaster position in country
3
RTL Group at a glance
MISSION STATEMENT
We are innovators who shape
the media world across broadcast,
content and digital.
We build inspiring environments
where creative and pioneering spirits
can thrive.
We create and share stories
that entertain, inform, and engage
audiences around the world.
We embrace independence and
diversity in our people, our content
and our businesses.
We have a proud past, a vibrant
present and an exciting future.
4
RTL Group at a glance
EUROPE’S LEADING FREE-TO-AIR BROADCASTER…
FY 2018 revenue
In € billion
6.5
4.0
3.61
3.4
2.3
1.92
0 1 2 3 4 5 6 7
Source: published full-year results
1 Converted at an exchange rate of £1.00 to €1.13098
5 2 Converted at an exchange rate of SEK 10.2582 to €1.00
RTL Group at a glance
…WITH WIDE REACH AND STRONG CONTENT PRODUCTION…
With operations in over 30 countries,
creating 12,700 hours of TV programming
a year
Producing number one prime-time
shows for major broadcasters in almost every
major TV market in the world
Distributing more than 20,000 hours
of content in over 200 territories
Over 400 titles on air
or in production at any one time
6
RTL Group at a glance
…AND ONE OF THE GLOBAL LEADERS IN ONLINE VIDEO
#1 #1 #1
IN NOR IN EURO IN THE
T
AMERIC H PE NORDIC
A S
Unmatched global reach Europe’s leading digital studio and home Unique direct sales team
and consistent growth for digital content creators for branded content
#1 digital video network globally #1 digital video network in Europe #1 digital video network in the Nordics
7RTL Group at a glance
OUR SHAREHOLDING STRUCTURE
Bertelsmann
24.1%1 75.1%1
Publicly traded on the
Frankfurt/Main and Luxembourg
stock exchanges
LISTED
ON
MDAX
SINCE 2
013
As of 31 December 2018
8 1 Excluding 0.8% which is held collectively as treasury stock by RTL Group and one of its subsidiariesRTL Group at a glance
CORPORATE GOVERNANCE (1/2)
BOARD OF Martin Taylor1 Chairman of the
Board of Directors
RESPONSIBILITIES
DIRECTORS
• Approval of RTL Group’s
James Singh1 Vice-Chairman of the annual budget
Board of Directors
• Oversight of significant
acquisitions and disposals
Executive Directors Non-Executive Directors
• Management of the Group’s financial
statements
Guillaume de Posch Thomas Götz
• Review, with expert help if requested,
Thomas Rabe Immanuel Hermreck Bernd Hirsch that any transaction between RTL Group
CEO RTL Group
or any of its subsidiaries on the one hand
Elmar Heggen and any of the shareholders or any of
Bernd Kundrun Jean-Louis Schiltz1
COO and Deputy CEO RTL Group their respective subsidiaries on the other
hand is at arm’s length terms
Rolf Schmidt-Holtz Lauren Zalaznick1
9 1 Independent DirectorRTL Group at a glance
CORPORATE GOVERNANCE (2/2)
NOMINATION & COMPENSATION AUDIT COMMITTEE
COMMITTEE
Chairman of the Nomination
Chairman of the Audit Committee
Martin Taylor1 and Compensation Committee James Singh1 Vice-Chairman of the Board of Directors
Chairman of the Board of Directors
Immanuel Hermreck Rolf Schmidt-Holtz Thomas Götz Thomas Götz Bernd Hirsch Jean-Louis Schiltz Martin Taylor1
Responsibilities
• Consulting the CEO and giving prior consent on the appointment • Oversight of the Group’s financial reporting, risk management
and removal of executive directors and senior management and internal control as well as standards of business
• Proposals on the appointment and removal of non-executive directors conduct and compliance
to the General Meeting of the shareholders • Monitoring of financial reporting, statutory audit of the legal and
• Establishing Group’s compensation policy consolidated accounts, independence of the external auditors, effectiveness of the
Group’s internal controls, compliance programme and risk management
• Review of the Group’s financial disclosures and
recommendation to the Board of Directors regarding the appointment
of external auditors
1 Independent Director
10 For more information on Corporate Governance and the Corporate Governance charter, please see www.rtlgroup.comRTL Group at a glance
STRONG MANAGEMENT TEAM
RESPONSIBILITIES
OF THE EXECUTIVE
COMMITTEE
Thomas Rabe Elmar Heggen Björn Bauer 1 The Executive Committee is vested
with internal management authority
Chief Executive Officer Chief Operating Officer and Deputy CEO Chief Financial Officer
• CEO since 2019 • Deputy CEO since 2018 • CFO since 2019
• Portfolio responsibility: • COO since 2019 • Responsible for RTL Group’s 2 Responsibility of CEO for
Mediengruppe RTL Deutschland, Finance, Investor Relations and the day-to-day management
• Portfolio responsibility: of the Group
Fremantle and SpotX Groupe M6, RTL Nederland, Group IT departments
• Responsible for RTL Group’s RTL Belgium, RTL Hungary, RTL
Audit & Compliance and Croatia, Divimove, BroadbandTV 3 Active dialogue with the Board
European Affairs departments and the Luxembourg operations of Directors about the status and
• Representing RTL Group on the development of the Group
Board of Atresmedia, Spain
• Responsible for RTL Group’s 4 Proposal of annual budgets,
Business Development, Legal, to be approved by the Board
Corporate Communications & of Directors
Marketing and Group HR
11
departmentsRTL Group at a glance
NEW GROUP MANAGEMENT COMMITTEE
EXECUTIVE COMMITTEE
Thomas Rabe Elmar Heggen Björn Bauer
Chief Executive Officer, Deputy CEO and Chief Operating Officer, Chief Financial Officer,
RTL Group RTL Group RTL Group
Jennifer Mullin Bernd Reichart Nicolas de Tavernost
Chief Executive Officer, Chief Executive Officer, Chief Executive Officer,
Fremantle Mediengruppe RTL Deutschland Groupe M6
12RTL Group at a glance
RTL GROUP’S REPORTING SEGMENTS
Mediengruppe
Groupe M63 Fremantle RTL Nederland RTL Belgium Other Segments
RTL Deutschland
100%1 48.3%1 100%1 100%1 66.0%1
RTL Radio
RTL II Super RTL RTL Hungary RTL Croatia Atresmedia4 RTL Luxembourg
(France)
35.8%2 50.0%2 48.3%1 100%1 100%1 18.7%2 100%1
SpotX BroadbandTV StyleHaul Divimove United Screens
100%1 57.3%1 100%1 100%1 100%1
1 Fully consolidated
2 Investment accounted for using the equity method
3 Net of treasury shares and own shares held by Métropole Télévision SA under liquidity contract
4 Net of treasury shares
13 The Group’s ownership based on total number of shares after declaration of treasury shares held by the company as per 31 December 2018.RTL Group at a glance
#RTLCA
OUR ROLE IN SOCIETY RES
Our commitment to our main stakeholders … … in three CR focus areas
Viewers, listeners and digital users
The creative community
Advertisers
Our employees
Communities and charities
“We embrace independence and diversity in our people, our content and our businesses.”
14RTL Group at a glance
#RTLCA
OUR MATERIAL TOPICS RES
Materiality assessment MANDATORY ASPECTS
Conducted regularly to identify the issues that are important to the business Diversity of people
and to stakeholders and to determine the relative priority of these issues and content
Human rights
(Editorial independence)
Aligned with
Employee matters
Learning, fair working
conditions, health
Anti-corruption and
anti-bribery
Social matters
Content responsibility,
community investment
Environmental matters
Relevance: 0 = none, 6 = very high
15RTL Group at a glance
#RTLCA
OUR MEASURES IN CORPORATE RESPONSIBILITY RES
Diversity of people and content Employee matters Social matters
• Diversity targets Learning Content responsibility
• Enhanced maternity and adoption pay • Trainee programmes • Partnerships, e.g. with Stiftung Lesen
to reduce pay gap • Training for employees • Child-protection standards
• Employee networks • Internal mobility programmes • Hosting child-friendly programmes
• Media literacy initiatives, e.g. RTL Factory hackathon
Human rights Fair working conditions
• European Works Council Community investment
• Newsroom Guidelines • Fair recognition, treatment and opportunities • € 17,433,048 estimated net value of free air
• Investigative journalism time or donated media time given to charities in 2018
Health
• € 3,482,662 cash donations and budget allocated
• Fitness offers to corporate foundations or charity
• Health check-ups initiatives supported internally in 2018
• Wellbeing campaigns • € 23,064,207 funds raised for charity during
flagship events
Anti-corruption and anti-bribery Environmental aspects
• Anti-corruption training programme • Promoting sustainable mobility in the
• Anti-corruption policy company (e.g. bicycles, e-mobility)
• Employee initiatives, e.g. UFA Green Team
16RTL Group at a glance
#RTLCA
OUR AMBITIONS RES
OUR CONTENT OUR DIVERSITY TARGET OUR CO2 TARGET
Our news organisations strive for truthful, By 2021, we aim to We plan to reduce our carbon
fair and impartial reporting, while protecting
individual rights and shielding minors from increase the percentage of emissions by 20% until 2025
inappropriate content. 30%
female leadership in our with the milestone of a 10%
We ensure our output reflects the diversity of the management to 30%. reduction by 2020.
various cultures we serve. (2018: 20%) (Baseline 2016)
We do not tolerate discrimination against
employees or applicants for employment because
of race, national or ethnic origin, gender,
pregnancy, marital or parental status, age,
disability, religion or belief, sexual orientation or
any other characteristic specified under applicable
anti-discrimination law or company policy.
RTL Group’s corporate culture is founded on fairness, partnership, mutual trust and commitment.
17AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY BUSINESS & RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL STRATEGY SHARE 2019
MEDIA WORLD UPDATEFull-Year 2018 Highlights
OUR TOTAL VIDEO STRATEGY ONCE AGAIN PAYS OFF…
BROAD
CAST High margins,
dynamic growth of VOD services
BROADCAST
CONTE
NT Strong revenue growth +8%
and higher EBITDA +5%
DIGITA
L €1 billion in digital revenues +19%
already 15% share of total revenue TOTAL VIDEO
STRATEGY
19Full-Year 2018 Highlights
…WITH RECORD REVENUE, EXCEEDING €6.5 BILLION FOR THE FIRST TIME
KEY
S
FIGURE
+2.1%
Revenue: €6,505m
BROADCAST
-5.7% -1.8pp
EBITDA: €1,380m Margin: 21.2%
+0.7%
Operational EBITDA:
Total +6.3%
Dividend: €4.00 Yield
20Full-Year 2018 Highlights
MORE DIVERSIFIED THAN EVER BEFORE
Digital revenue split TV advertising
In € million
45.8%
+19%
985 MPNs: €331m
MPNs
VOD VOD1: €216m Content
826
Content
20.0%
€6.5bn
Ad-tech
Content: €165m
Other (Fremantle) Other
2017 2018
9.7% Digital
Ad-tech2: €148m
% of 15.1%
total RTL Group revenue
Other: €125m 4.1%
13% 15%
Radio
advertising 5.3% RTL GROUP FY 2018
Share of digital revenue 3 YEARS AHEAD of plan Platform REVENUE SPLIT
21 1 Activities include SVOD, TVOD, in-page and in-stream revenues), 2. Includes joint ventures with Mediengruppe RTL Deutschland and RTL NederlandFull-Year 2018 Highlights
INCREASED TRANSPARENCY TO TRACK ORGANIC GROWTH DRIVERS
TV & RADIO CONTENT DIGITAL
2018/YOY MPNs Ad-tech
Revenue: €4,740m -1% Revenue: €1,592m +8% €331m +28% €112m1 +2%
Platform rev.: €343m +7% # hrs produced: 12,738 hrs +2% Ad-tech ad-spend: $576m +49%
SVOD subscribers: 1m +77% % of drama: 19% -3pp MPN video views: 463bn +20%
Digital rev.: €377m +11% Digital rev.: €165m +39% MPN & Ad-tech rev.: €443m +20%
Total digital revenue €985m
22 Broadcast, content, digital split based on consolidated business unit view; inter-company eliminations excluded, 1. Excludes joint ventures with Mediengruppe RTL Deutschland and RTL NederlandFull-Year 2018 Highlights
FOCUS ON ORGANIC GROWTH DRIVERS: DIGITAL AND CONTENT
BROADCAST CONTENT DIGITAL
Top-line drivers to 2021
VOD revenue to grow by > €150m Drama revenue to grow to > €500m Ad-tech revenue to grow by > €100m
SVOD subscribers to triple to ~ 3m
23AGENDA
RTL GROUP AT FULL-YEAR Financials OUR INDUSTRY BUSINESS & RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL STRATEGY SHARE 2019
MEDIA WORLD UPDATEFinancials 2018
REVENUE BRIDGE IN 2018
RTL Group revenue bridge in 2018
In € million
176 6,505
6,373 (62)
18
Net growth
FX Acquisitions
2017 2018
25Financials 2018
HIGHLY DIVERSIFIED REVENUE MIX
RTL GROUP 2018 REVENUE SPLIT TV advertising
In % TV ADVERTISING
45.8%
Content
20.0%
55.8% 65.9%
Other1 €6.5bn
9.7% Digital
15.1%
4.1%
Radio
advertising 5.3%
TV advertising
Platform Other revenue
26 1 Other includes home shopping, merchandising, e-commerce, technical services, etc.Financials 2018
RECORD REVENUE, HIGH MARGINS
Full-Year to Full-Year to Per cent
In € million December 2018 December 2017 change
Revenue 6,505 6,373 +2.1
Underlying revenue 6,516 6,339 +2.8
Operating cost base 5,464 5,342 +2.3
EBITDA 1,380 1,464 (5.7)
EBITDA margin (%) 21.2 23.0 (1.8)pp
Operational EBITDA 1,380 1,370 +0.7
Operational EBITDA margin (%) 21.2 21.5 (0.3)pp
Net debt (470) (545) -
Net debt EBITDA ratio at end of year 0.34 0.37 -
27Financials 2018
EBITDA TO NET PROFIT
Full-Year to Full-Year to Per cent
In € million December 2018 December 2017 change
Reported EBITDA 1,380 1,464 (5.7)
Depreciation, amortisation and impairment (224) (233)
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing
25 21
interest in acquiree
Impairment of, goodwill of subsidiaries, investments accounted for using the equity method and remeasurement
(105) (6)
of earn-out arrangements
Net financial income/(expense) (13) (24)
Income tax expense (278) (385)
Profit for the year 785 837 (6.2)
Profit for the year attributable to RTL GROUP SHAREHOLDERS 668 739 (9.6)
28Financials 2018
CASH CONVERSION
Full-Year to Full-Year to
In € million December 2018 December 2017
Net cash flow from operating activities 873 1,023
Add: Income tax paid 354 345
Less: Acquisition of assets, net (178) (69)
Equals: Reported free cash flow (FCF) 1,049 1,299
Acquisition and disposal of subsidiaries and JVs, net of cash acquired (18) (30)
Other financial assets (deposit excluded), net 117 (33)
Net interest (12) (13)
Transactions with non-controlling interests & treasury shares (25) (147)
Income tax paid (354) (345)
Dividends paid (686) (687)
Cash generated 71 44
EBITA 1,171 1,248
CASH CONVERSION (FCF/EBITA) 90% 104%
29Financials 2018
ATTRACTIVE DIVIDEND YIELD
Full-Year to
In € million December 2018
Profit for the year attributable to RTL Group shareholders 668
Adjustments for:
Impairment 105
Deferred tax asset (67)
PLP commission (28)
Adjusted net result 678
ORDINARY DIVIDEND, in € per share 3.00
DIVIDEN
Ordinary dividend, absolute amount1 461
D
Dividend payout, in %2 68% YIELD
OF 6.3% 3
1 Based on total share capital less treasury shares held by the Group and liquidity programme.
2 Ordinary dividend, absolute amount/adjusted net result.
30 3 Including €1.00 interim dividend and based on average share price in 2018 (€63.06)Financials 2018
SIGNIFICANT VALUE ADDED
In € million 2018 2017
EBITA 1,171 1,248
Deduction of shares of results of investments accounted for using the equity method and already taxed (21) (26)
1,150 1,222
Net basis after deduction of uniform tax rate 771 819
Shares of results of investments accounted for using the equity method and already taxed 21 26
NOPAT 792 845
Invested capital at beginning of year 4,123 4,181
Invested capital at end of year 4,093 4,123
66 per cent of the net present value of operating leases and satellite transponder service agreements
302 320
at beginning of year
66 per cent of the net present value of operating leases and satellite transponder service agreements
226 302
at end of year
Adjusted average invested capital 4,372 4,463
Cost of capital 350 357
RVA1 442 488
31 1 RVA = RTL Group Value Added. For more information, see note 3 to the Consolidated Financial Statements in the RTL Group Annual Report 2018Financials 2018
…AND STRONG FINANCIAL KPIs
In € million 2018 2017 2016 2015 20141
Revenue 6,505 6,373 6,237 6,029 5,808
EBITDA 1,380 1,464 1,411 1,360 1,347
EBITA 1,171 1,248 1,205 1,167 1,144
RVA2 442 488 462 455 457
Net debt (470) (545) (576) (671) (599)
Net debt EBITDA ratio at end of year 0.34 0.37 0.41 0.49 0.44
1 2014 figures adjusted for changes in purchase price allocation
32 2 RVA = RTL Group Value Added. For more information, see note 3 to the Consolidated Financial Statements in the RTL Group Annual Report 2018AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY BUSINESS & RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL STRATEGY SHARE 2019
UPDATE
MEDIA WORLDOur industry in the digital media world HOW THE INDUSTRY IS CHANGING WITH FRAGMENTATION TV CHANNELS ONLINE CHANNELS 34
Our industry in the digital media world
TOTAL VIDEO MARKET IS GROWING, DRIVEN BY ONLINE VIDEO
Total video market size
Revenue, in € billion Advertising revenues
Online short form
+4.0% 7.0
Catch-up TV
1.2 Linear and time shifted TV
5.7 +4.3% Other revenues
0.6 0.8 5.2 SVOD
0.4 0.3 0.7 CAGR, in per cent
0.1
4.2
0.3 0.9
0.4
0.2 0.3
+0.3%
+5.6%
4.6 4.7
-0.1% 1.8
3.3 3.3 1.4 0.6
0.2 0.3
0.2
0.1 0.1
0.9
-0.6% 0.9
2017 A 2022 E 2017 A 2022 E 2017 A 2022 E
GERMANY FRANCE NETHERLANDS
35 Source: IHS Markit 2018, Internal estimates, differences in sum due to roundingsOur industry in the digital media world
VIDEO CONSUMERS ARE ON THE MOVE
100%1 42% 7% 22% 5% 7%
10 HOURS
24 MINUTES Traditional TV Connected TV
DAILY
-8% +7% +4% -14% -2%
36 1 Source: Nielsen Q2/2018 for the USA | 100% including radioOur industry in the digital media world
RTL GROUP’S BUSINESS MODEL
BROADCAST
Content procurement Aggregation Distribution Audience
and production and monetisation
CONTENT REACH
COMMERCIALS
ADVERTISING
REVENUE
TV CHANNELS AND
VIDEO ON-DEMAND TECHNICAL
ACCESS TO
CONTENT
PLATFORM
REVENUE
37Our industry in the digital media world
THE CONTENT PRODUCTION VALUE CHAIN
Concept Pre- Production Post- International
creation Production1 Production Distribution
• IP creation • IP development • Shooting • Cut • Tape Sales
• Script • Funding • Screenplay • VFX • Rights
• Character • Scheduling • Storyboard • Sound Management
design • Integration of • Music • Commercial
• Story Process Exploitation
• DRM
• Attach key cast • Ancillary
Exploitation
• Storyboard
38 1 Pre-production will only start once, the idea was sold to a commissioning client networkOur industry in the digital media world
RTL GROUP AIMS TO BE PRESENT ALONG THE AD-TECH VALUE CHAIN
LINEAR
NON-LINEAR TV/SET
PC/MOBILE TOP BOXES
CONNECTED TV DEVICES
PROGRAMMATIC OTT TV/ADDRESSABILE SERVER-SIDE DYNAMIC PROGRAMMATIC TARGETING INDIVIDUAL
ONLINE VIDEO TV (HBBTV) AD INSERTION (SSDAI) LINEAR TV HOUSEHOLDS WITH
SPECIFIC ADS ON LINEAR TV
STILL IN
CROSS-SCREEN PLANNING
PILOT PHASE
VISION: BUILD AN INDEPENDENT TOTAL VIDEO MONETISATION PLATFORM
FORECAST BOOK EXECUTE OPTIMISE
39AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY BUSINESS UPDATE RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL SHARE 2019
MEDIA WORLDMediengruppe RTL Deutschland
MARKET LEADERSHIP, HIGH PROFITABILITY
Key financials Family of channels
In € million 14 to 59, FY 2018
Revenue
HIGHLIGHTS
EBITDA 33% 27.3%
MARGIN Achieved a 36%
increase in subscribers
-2.8% YOY³, driven by strong
2,289 10.4% original programming
2,226
Others 23.7%
6.3%
Set-up “d-force” joint
MARKET 10.6% venture with P7S1 to
7.1% LEADER boost addressable TV
ARD-III
and online video
738 728
advertising
ARD 8.1%
24.8%
9.0% Strong position in
ZDF P7S1
high-growth podcast
2017 2018 and audio market
Slight decrease due to lower TV ad Maintained clear lead over P7S1
revenue in a major sports year
41 1 SVOD growth refers to end of June 2019 vs. end of June 2018Groupe M6
STRONG OPERATIONAL PERFORMANCE, RECORD EBITDA
Key financials Family of channels
In € million Women < 50 responsible
Revenue for purchases, FY 2018 HIGHLIGHTS
EBITDA 27% 21.4%
MARGIN Received regulatory
approval, tech platform
-1.3% to be provided by M6
1,503 1,483 15.0%
Others
33.8%
6.4%
Acquisition of Gulli
further complements
STRONG #2 strong family of
400 channels
389
France 3 4.0%
32.4%
8.4%
France 2 Groupe TF1 Successful launch of
RTL Originals podcasts,
2017 2018 generating >2 million
High-margin platform revenue Audience shares impacted by downloads since start
drives profitability FIFA World Cup 2018
42RTL Nederland
REVENUE BOOSTED BY VIDEOLAND AND POSITIVE TV AD MARKET
Key financials Family of channels
In € million Adults 25 – 54, Prime time,
Revenue FY 2018 HIGHLIGHTS
EBITDA 18% 27.2%
MARGIN
No. 1 platform for
Dutch video content,
+6.5% strong subscriber growth
15.3% (+58% YOY1)
508 Others
477 27.2%
CLEAR 11.9% Create and own
original IP, strengthen
MARKET market leader position
LEADER
87 89 20.1%
25.5%
Pubcaster Talpa TV Acquired
complementary
2017 2018 inventory to strengthen
Solid results in spite of ongoing investments Established #1 family of channels sales house position
43 1 SVOD growth refers to end of June 2019 vs. end of June 2018Fremantle
SUCCESSFUL STRATEGIC TRANSFORMATION…
CORE ENTERTAINMENT DRAMA DIGITAL
Keep global entertainment Develop digital business
Grow drama business
formats on-air with new clients and formats
Formats
16th season 13th season 15th season 2nd season 1st season 2nd season 1st season #1 FB video ever > 1m DAUs
Partners
409 programmes on-air in 62 territories >35 series since launch 29bn YouTube views
in 2018 in 2013 in 2018
44Fremantle
DRIVES ORGANIC GROWTH
Key financials
In € million
9%
MARGIN
148 1,592
1,472 (41) +10%
13 147
Revenue
Organic growth 140
EBITDA
FX Scope
2017 2018 2017 2018
12,738 hours of content aired in 2018 (+2% on 2017)
45AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL SHARE 2019
MEDIA WORLD & STRATEGY UPDATERTL Group
PRIORITIES GOING FORWARD
FOCUS ON OPERATIONAL PERFORMANCE and strengthen families of channels across the Group
GROW NATIONAL STREAMING CHAMPIONS with focus on technology and exclusive content
ACCELERATE CONTENT CREATION / PRODUCTION across Fremantle and TV broadcasters
DEEPLY INTEGRATE AD-TECH and create Europe’s leading ad-tech development unit
PURSUE INTERNAL AND EXTERNAL COLLABORATION / ALLIANCES
TOTAL VIDEO
INVEST IN DATA AND TECHNOLOGY across the Group
STRATEGY
47Strategic priority – ALLIANCES
NEW ALLIANCES: SHAPING THE FUTURE OF THE EUROPEAN TOTAL VIDEO INDUSTRY
External alliances Internal alliances Examples / non-exhaustive
Ad Alliance: Expanded portfolio with digital assets of Bertelsmann Content Alliance: Cross-divisional offers
Axel Springer’s Media Impact sales house across TV, audio and print well received by creatives
and advertisers
Audio Alliance: Develop and distribute audio products
D-force with P7S1: Planned DSP joint venture to drive across Bertelsmann, RTL Group, G+J, PRH and BMG
growth in addressable TV and online video market
Format Creation Group: Create and control non-scripted
IP to fulfil demand for exclusive content
European netID: Now has around 65 partner websites VOD tech platform provided by Groupe M6:
in Germany Serving streaming offers across RTL Group
Form alliances to accelerate growth Leverage RTL Group’s unique position
48Strategic priority – VOD
NATIONAL STREAMING CHAMPIONS SEE FAST GROWTH AND COLLABORATE ON TECH
Achievements
COMPETE COLLABORATE CREATE
>1.2M PAYING SUBSCRIBERS INTEGRATED TECH PLATFORM 48 EXCLUSIVE TITLES
for TV Now and Videoland for RTL Group streaming offers in across TV Now and Videoland
H1/2019: +46% YOY FR, NL, BE, HU, CR, LU in HY 2019
Component sharing with German streaming
service TV Now
49Strategic priority – CONTENT
CONTENT POWERHOUSE – FREMANTLE TO EXPAND GENRES & CO-PRODUCTIONS…
Key formats
Priorities
DEVELOP IP WITH
EXPAND DRAMA NEW CLIENTS
BROADCASTERS
75 scripted series in the 1st joint IP formats First Facebook show
pipeline with 20 in advanced with RTL NL in progress Confetti commissioned
production stages in 5 markets
50Strategic priority – CONTENT
…WITH FOCUS ON DEVELOPING INTELLECTUAL PROPERTY
Top-line drivers to 2021
Priorities
DEVELOP IP WITH
EXPAND DRAMA NEW CLIENTS
BROADCASTERS
Expand development relationship Expand joint IP development with RTL Expand digital first content
with premium networks broadcasters creation/monetisation
51Strategic priority – AD-TECH
CREATE EUROPE’S LEADING AD-TECH DEVELOPMENT UNIT
Strategic review of RTL Group’s ad-tech businesses
EU operations (except the UK) to be led by Mediengruppe RTL Deutschland, bundled under Smartclip brand
Create open ad-tech platform customised for European broadcasters and streaming services
Reviewing strategic partnership options for the SpotX Global business
52AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY BUSINESS & RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL STRATEGY SHARE 2019
MEDIA WORLD UPDATERTL Group Share
A LEADER ACROSS BROADCAST, CONTENT AND DIGITAL IN THE MEDIA SEGMENT …
Share performance
1 January 2018 to 31 December 2018
RTL Group
P7
SXMP
MDAX
-4.9%
SXMP
-17%
MDAX
RTL Group share price development for January to
December 2018 based on the Frankfurt Stock -30.4%
Exchange (Xetra) against MDAX, Euro Stoxx 600 RTL GROUP
Media and ProSiebenSat1
-46.4%
PROSIEBENSAT1
29/12/2017 29/01/2018 28/02/2018 31/03/2018 30/04/2018 31/05/2018 30/06/2018 31/07/2018 31/08/2018 30/09/2018 31/10/2018 30/11/2018 31/12/2018
54RTL Group Share
TOTAL SHAREHOLDER RETURN (TSR)
Total shareholder return (TSR) 2018 2016 2014
Share price as of 1 January (in €) 67.07 77.05 93.93
Closing share price as of 31 December 2018 (in €) 46.70 ‒ ‒
Cumulative dividends paid, including intervening years and extraordinary dividends (in €) 4.00 12.00 23.00
Total shareholder return (in %) (24) (24) (26)
[Closing share price at 31 December 2018] + [Cumulative dividends paid from 1 January 2014 until 31 December 2018]
TSR =
TSR has been [Share price as of January 2014]
calculated as follows
(using 1 January 2014
as an example) € 46.70 + € 23.00
TSR = € 93.93
-1 = -25.8%
55RTL Group Share
ANALYSTS’ VIEW
Recommendation by Analysts1
In %
ANALYSTS COVERING RTL GROUP
Latest update: 20 May 2019
Latest
Sell Buy Bank Analyst recommendation
Deutsche Bank Laurie Davison Hold
11% 22% Barclays Capital Julien Roch Neutral
UBS Richard Eary Neutral
Bank of America Merrill Lynch Adrien de St.Hilaire Underperform
Société Générale Christophe Cherblanc Hold
Bankhaus Lampe Christoph Bast Hold
Citi Catherine O'Neill Neutral
HSBC Chris Johnen Hold
Morgan Stanley Omar Sheikh Underweight
Exane BNP Annick Maas Neutral
Hold
JP Morgan Daniel Kerven Neutral
KBC Ruben Devos Accumulate
67% Kepler Cheuvreux Conor O'Shea Buy
Nord LB Holger Fechner Hold
Warburg Research Lucas Boventer Hold
ODDO BHF Jerome Bodin Buy
Pareto Mark Josefson Buy
Goldman Sachs Lisa Yang Neutral
56 1 Based on analysts who have published notes known of by the Group since the announcement of the 2019 half-year resultsRTL Group Share
EQUITY STORY: WHY INVEST IN RTL GROUP?
MARKET-LEADING RESILIENT EFFICIENT STRONG AND
POSITIONS TOP-LINE GROWTH COST STRUCTURES ROBUST CASH FLOWS
Across the value chain of A well diversified And strict cost control Enable attractive
broadcast, content and digital, revenue mix providing financial flexibility shareholder returns
through re-definition
of TV as Total Video
EXCELLENT ANCHOR
INVESTMENT ATTRACTIVE SHAREHOLDER RESPONSIBLE
POSITION DIVIDEND POLICY BERTELSMANN CORPORATE CITIZEN
to invest sustainably in A leading global media, Creating value for users,
existing businesses and new services and education partners, shareholders,
growth drivers, ensuring company employees and the
attractive shareholder greater society
remuneration
57AGENDA
RTL GROUP AT FULL-YEAR FINANCIALS OUR INDUSTRY BUSINESS & RTL GROUP OUTLOOK
A GLANCE HIGHLIGHTS 2018 IN THE DIGITAL STRATEGY SHARE 2019
MEDIA WORLD UPDATERTL Group
OUTLOOK FOR 2019
2019 Guidance
Revenue outlook +
REVENUE expected to In € million and %
grow moderately, driven by digital
businesses and Fremantle +2.5% +5.0%
€6,668m €6,830m
EBITA pre-restructuring costs EBITA outlook
In € million and %
–
expected to decrease moderately,
reflecting investments in TV -2.5% -5.0%
programming and VOD €1,142m €1,112m
NEW DIVIDEND POLICY: at least 80% pay-out ratio of adjusted net result¹
RTL Group is reverting back to guidance on EBITA in its outlook statement. The Group believes this will provide a better operational KPI than continuing to use EBITDA. The Group notes that the analyst community continues to use
EBITA–some on an exclusive basis–as the main KPI for the Group’s profitability. Reverting back to EBITA will therefore align the Group’s guidance to the expectations of the investment community. In addition, the Group’s EBITDA will be
affected by the new IFRS 16 (Leases) standard from 2019 onwards. Both EBITDA and EBITA will continue to be reported on for the Group’s business segments. As outlook guidance will revert back to EBITA, RTL Group will also comment
primarily on EBITA as the KPI for operating profit in 2019.
59 1 – reported net result adjusted for any material non-cash impacts such as goodwill impairments etcRTL Group
OUTLOOK FOR 2019
LEVERAGE TARGET CASH CONVERSION
UNCHANGED UNCHANGED
Levels of 0.5 and 1.0 times net Not below 85 to 90 per cent
debt to full-year EBITDA
60Outlook
FINANCIAL CALENDAR 2019/2020
MARCH
13 March 2020 1 2 3 4 5 6 7 8 9 10 11 12 13
13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
at 8:00 am CET
APRIL
Full-year results 2019
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
22 23 24 25 26 27 28 29 30 31
MAY
22 April 2020 1 2 3 4 5 6 7 8 9 10 11 12 13 14
14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
at 15:00 am CEST
Annual General Meeting JUNE
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
14 May 2020 JULY
at 8:00 am CEST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Quarterly Statement:
AUGUST
January to March 2020
1 2 3 4 5 6 7 8 9 10 11 12 13
13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
SEPTEMBER
13 August 2020
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
at 8:00 pm CEST
Interim results: OCTOBER
January to June 2020 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
61Outlook
CONTACT
Senior Vice President
ANDREW BUCKHURST Investor Relations
+352 2486 5074
andrew.buckhurst@rtlgroup.com
62INVESTOR RELATIONS PRESENTATION LAST UPDATED 27 NOVEMBER 2019
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 should not be used as) the sole basis of any analysis or other evaluation. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of RTL Group S.A. (the “Company”) and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. Forward- looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes,” “expects,” “predicts,” “intends,” “projects,” “plans,” “estimates,” “aims,” “foresees,” “anticipates,” “targets,” “will,” “would,” “could” and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are uncertain and subject to risks and uncertainty because they relate to events and depend upon future circumstances that may or may not occur, many of which are beyond the Company’s control. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or any of its subsidiaries (together with the Company, the “Group”) or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in core markets of the members of the Group, changes in the markets in which the Group operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, the potential impact of legal proceedings and actions, the Group’s ability to achieve operational synergies from past or future acquisitions and the materialization of risks relating to past divestments. The Company does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors and it does not accept any responsibility for the future accuracy of the opinions expressed in this presentation. The Company does not assume any obligation to update any information or statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This presentation is for information purposes only, and does not constitute a prospectus or an offer to sell, exchange or transfer any securities or a solicitation of an offer to purchase, exchange or transfer any securities in or into the United States or in any other jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. 64
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