Agenda 1 1 2 3 4 2018 Full-year Full-year Group Business & Strategy Outlook 2017 highlights 2017 highlights financials update 2018 2 2
Highlights Total Video strategy continues to pay off… BROADCAST Strong results in Germany and France CONTENT FremantleMedia with higher profits TOTAL and growing drama slate VIDEO DIGITAL Dynamic digital growth, revenue up by 23% 3 3
Highlights …with another set of record results € 6,373 million Revenue +2.2 % € 1,464 million EBITDA +3.8 % 23.0% EBITDA margin +0.4pp € 3.00 Proposed dividend of 5.9 % yield 1 Notes: Revenue and EBITDA percentages refer to year-on-year growth on 2016. 1. Yield is based on average 2017 share price and including € 1.00 interim dividend paid in September 2017. 4 4
Highlights Digital: dynamic growth DIGITAL REVENUE TOTAL In € million YOY VIDEO +23% 3.5x 826 +23.2% 670 508 +33.2% 295 233 +22.4% 1 2013 2014 2015 2016 2017 On track to achieve digital 13.0% revenue goal of 15% by 2020 % of total RTL Group revenue 4.0% Source: Internal figures. 1. Divimove: revenue included in 2017, not 2016. 5 5
Highlights Platform: growing and highly profitable revenue stream PLATFORM REVENUE 1 In € million YOY HD Non-advertising +14% channels Advertising 1.7x 319 Thematic 281 channels 248 225 New deals 185 signed in 2017 & 2018 2013 2014 2015 2016 2017 5.0% Further growth secured % of total RTL Group revenue 3.2% 1. Platform revenue defined as revenue generated across all pay platforms (cable, satellite, IPTV) including subscription and re-transmission fees. 6 6
Highlights Well-diversified revenue mix RTL GROUP 2017 REVENUE SPLIT In % Other 1 10.4 47.5 TV advertising Digital TV advertising Other revenue 13.0 € 6.4 bn Content 49.0% 69.7% 20.1 5.0 Platform 4.0 Radio advertising 1. Other includes home shopping, merchandising, e-commerce, technical services, etc. 7 7
Consistent strategy RTL Group accelerating global Total Video offer LEADING TV ON-DEMAND IN EU #1 GLOBAL MPN >10m 35bn UUs/ views/ month month 1 LEADING CONTENT PRODUCER #1 PAN-EU SALES NETWORK TOTAL >12.5k VIDEO >100 EU hours channels on air A LEADING VIDEO AD-STACK #1 ADDRESSABLE TV IN GERMANY $500m >20 media channels spend in total 1. FY 2017 monthly average. 8
Strategy 2018 and beyond Reinvigorating the RTL pioneering spirit MORE CROSS MEDIA INNOVATION Creating cross-media Virtual and augmented MPN Nordic powerhouse reality investment expansion MORE TOTAL EXCLUSIVE VIDEO CONTENT Local content, Live football Multiple drama series local hits in production Moving to the big screen MORE AD TECHNOLOGY AT SCALE 9
Agenda 1 1 2 2 3 4 2018 Full-year Full-year Group Group Business & Strategy Outlook 2017 highlights 2017 highlights financials financials update 2018 10 10
Highlights Revenue and EBITDA once again at a record level EBITDA REVENUE REVENUE In € million In € million Growth driven by MGRTL, Groupe M6 and digital +3.8% +2.2 % 1,464 6,373 activities EBITDA 6,000 EBITDA growth driven by MGRTL, FremantleMedia and one-off 1 5,824 1,328 FCF TO EBITA Cash conversion at 104%, up 7pp on 2016 2013 2017 2013 2017 1. One- off refers to sale of RTL Group’s buildings in Rue Bayard, Paris (€ 94m). 11 11
Review of results 31 December 2017 All key financial metrics up Full-year to Full-year to Per cent In € million December 2017 December 2016 change Revenue 6,373 6,237 +2.2 6,338 6,225 +1.8 Underlying revenue 5,342 5,209 +2.6 Operating cost base +3.6 EBITA 1,248 1,205 EBITA margin (%) 19.6 19.3 +0.3pp EBITDA 1,464 1,411 +3.8 EBITDA margin (%) 23.0 22.6 +0.4pp ‒ Net debt (545) (576) ‒ 0.37 0.41 Net debt EBITDA ratio at end of year Record EBITDA for fifth consecutive year 12 12
Review of results 31 December 2017 Higher net profit Full-year to Full-year to Per cent In € million December 2017 December 2016 change Reported EBITDA 1,464 1,411 +3.8 Depreciation, amortisation and impairment (233) (221) Re-measurement of earn-out arrangements and gain / (loss) from sale of subsidiaries other investments and re-measurement to fair value of pre- 21 7 existing interest in acquire ‒ Amortisation and impairment losses of goodwill (6) Net financial income / (expense) (24) (18) Income tax expense (385) (363) Profit for the year 837 816 +2.6 Profit for the year attributable to RTL Group shareholders 739 720 +2.6 13
Review of results 31 December 2017 Significantly higher cash conversion Full-year to Full-year to In € million December 2017 December 2016 Net cash flow from operating activities 1,023 1,106 Add: Income tax paid 345 267 Less: Acquisition of assets, net (69) (210) Equals: Reported free cash flow (FCF) 1,299 1,163 Acquisition and disposal of subsidiaries and JVs, net of cash acquired (30) (60) Other financial assets (deposit excluded), net (33) (23) Net interest (13) (12) Transactions with non-controlling interests & treasury shares (147) (17) Income tax paid (345) (267) Dividends paid (687) (689) Cash generated / (used) 44 95 EBITA 1,248 1,205 Cash conversion (FCF/EBITA) 104 % 97 % 14
Review of results 31 December 2017 Attractive dividend yield Full-year to In € million December 2017 Profit for the year attributable to RTL Group shareholders 739 Adjustments for: Capital Gain (62) Re-measurement (14) Restructuring 16 Adjusted net result 679 Ordinary dividend, in € per share 3.00 Ordinary dividend, absolute amount 1 461 Dividend payout, in % 2 68 % 1. Based on total share capital less treasury shares held by the Group and liquidity programme. 2. Ordinary dividend, absolute amount / adjusted net result. 3. Including € 1.00 interim dividend and based on average share price in 2017 ( € 68.25). 15
Agenda 1 2 2 3 3 4 2018 Full-year Group Group Business & Strategy Business & Strategy Outlook 2017 highlights financials financials update update 2018 16
Mediengruppe RTL Deutschland Another outperformance despite weak ad market KEY FINANCIALS In € million REVENUE +4.7 % 2,319 RTL Television continues as clear #1 1,955 Der Lehrer EBITDA Another strong year driven by local hits, +3.5 % 743 again surpassing Pro7 1 Die Höhle der Löwen CAGR +4.0% 32 % EBITDA 634 margin TV NOW paid subscriber base surges +80% 2013 2017 TV NOW & TV NOW Plus 1. Refers to total audience 3+, all day. 18
Mediengruppe RTL Deutschland Lead over P7S1 further increased – highest since 2013 FAMILY OF CHANNELS LONG-TERM DEVELOPMENT MG RTL 28.5% 14 to 59, FY 2017 +0.1 pp All day, adults 14-59 years in % 30.6 Others 11.3% 11.9% 22.4% 29.0 23.9% 6.8% 6.8% 28.5 28.4 28.4 1.7 Market 10.4% 9.7% ARD-III 6.9% leader 7.3% 4.1 26.7 8.4% 25.9 7.7% ARD 25.3 25.2 24.4% 25.3% 8.6% 8.2% -0.9 pp ZDF P7S1 24.4 2013 2017 Source: AGF in cooperation with GfK, differences may be due to rounding. Notes: Audience shares only refer to the free to air channels of the respective broadcasters. 19
Mediengruppe RTL Deutschland Local content creates strong unique selling point …especially for building non -linear offers Local hits catalogue more valuable than ever... 19 th season 14 th season 26 th season 10 th season 8 th season 11 th season 13 th season 23 rd season 11 th season 2 nd season Online-first content Mainstream appeal 4 th season 4 th season 3 rd season 6 th season 11 th season US drama OTT channel Launching end of March Exclusively on TV NOW Growing VOD distribution agreements 20
Groupe M6 French business outperformed net TV ad market FAMILY OF CHANNELS GROUPE M6 22.3% KEY FINANCIALS 1 Women <50 responsible +0.1 pp In € million for purchases, FY 2017 REVENUE EBITDA 15.7% Others EBITDA adjusted for 2016 one-off 1,503 1,446 33.6% 6.6% Higher audience 400 389 share 358 France 3 3.7% 32.1% 8.3% France 2 Groupe TF1 2016 2017 2016 2017 Source: Médiamétrie Notes: Groupe M6: M6, W9 and 6ter; TF1 Group: TF1, TMC, NT1 and HD1; 1. Pro-forma including RTL Radio (France). 22
Groupe M6 Creating a cross-media powerhouse …leveraging unique content Unified TV + radio… …with leading on - demand TV… Market-leading State-of-the-art Multi-year French football deal 1 sales portfolio customisation features + 20m registered users +40 % 1. Deal includes half the French national team's European Qualifiers for UEFA Euro 2020 and 2022 FIFA World Cup; friendlies, preparation matches, and matches of the first two editions of the new UEFA Nations League (in 2018 and 2020). 23
RTL Nederland Resilient audience shares; digital activities help offset difficult ad market FAMILY OF CHANNELS -5.1% RTL Nederland 31.1% 20 to 49, Prime time, KEY FINANCIALS TV ad market In € million FY 2017 REVENUE EBITDA 17.8% Others 25.5% 495 Clear 475 market 13.3% leader 96 87 24.0% 19.4% Pubcaster SBS 2016 2017 2016 2017 Source: SKO. Notes: SBS: SBS6, Net 5, Veronica & SBS 9; Pubcaster: NPO 1, NPO 2 & NPO 3. 25 25
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