KBC Brussels, 27 June 2018 Agenda 1 1 2 3 2018 Full-year Q1 - PowerPoint PPT Presentation

KBC Brussels, 27 June 2018

Agenda 1 1 2 3 2018 Full-year Q1 2018 Business & strategy 2016 highlights highlights update Outlook 2 2

Q1 2018 Highlights Good start into 2018 despite negative FX impact and one-off costs +0.8 % € 1,416 million 112% Revenue Cash conversion EBITDA Margin EBITA Margin 19.3 % 18.3 % € 259 million -1.9 % € 111 million EBITDA € 210 million -3.7 % Net profit EBITA 3

Agenda 1 2 3 3 2018 Q1 2018 Business & strategy Business highlights update update Outlook 4

Mediengruppe RTL Deutschland Revenue up driven by growth in advertising FAMILY OF CHANNELS +1.5 to +2.5% MG RTL 27.8% KEY FINANCIALS : Q1 2018 14 to 59, Jan-May 2018 TV ad market In € million REVENUE EBITDA 11,0% Others 23,8% 6,5% 534 519 10,3% Market ARD-III leader 7,1% 169 167 8,0% ARD 24,5% 8,8% ZDF P7S1 2017 2018 2017 2018 Source: AGF in cooperation with GfK; free-to-air channels only 5

Groupe M6 Good advertising revenue development; one-offs impact EBITDA FAMILY OF CHANNELS +1.7% Groupe M6 21.2% KEY FINANCIALS : Q1 2018 Women < 50 responsible TV ad market In € million for purchases, Jan-May 2018 REVENUE EBITDA 14.7% Others 34.0% 6.5% 360 360 Very well managed #2 76 77 France 3 4.2% 32.3% 8.3% France 2 Groupe TF1 2017 2018 2017 2018 Source: Médiamétrie Groupe M6: M6, W9 and 6ter; TF1 Group: TF1, TF1 Series Films, TFX and TMC 6

RTL Nederland TV ad market shows positive development FAMILY OF CHANNELS +7.4% KEY FINANCIALS : Q1 2018 RTL Nederland 28.5% 25 to 54, Prime time, (in € million) TV ad market Jan-May 2018 REVENUE EBITDA 16.8% Others 26.5% 110 105 Clear 11.7% market leader 6 24.5% 20.5% 1 Pubcaster Talpa TV 2018 2017 2018 2017 Source: SKO Talpa TV: SBS6, Net 5, Veronica & SBS 9; Pubcaster: NPO 1, NPO 2 & NPO 3 7 7

FremantleMedia Revenue negatively impacted by FX: organic growth rate of +7% KEY FINANCIALS : Q1 2018 In € million Business update REVENUE EBITDA ▪ ITV drama, Beecham +19 (20) House, under development +1 271 271 Acquisitions Net production ▪ Charité sold to Netflix FX growth Slippage of “Picnic at ▪ 15 13 hanging rock” into Q2 ▪ 6 episodes of American Idol in Q1 – remainder (13) in Q2 : renewed for 2019 2018 2017 2018 2017 8

Digital Growth in video views and revenue continues VIDEO VIEWS RTL GROUP : Q1 2018 DIGITAL REVENUE : Q1 2018 In € million In billion +7% +38.9% 124,3 190 178 89,5 120 58,4 Q1 2016 Q1 2017 Q1 2018 Q1 2016 Q1 2017 Q1 2018 8.4% 13.5% % of total RTL revenue 9

Strategy update Adapting the business model: more offers for a more connected consumer GLOBAL LOCAL New TV Offers B2C B2B LINEAR ▪ Platform agnostic OTT Emergence of new OTT TV platforms consumer demand LINEAR TV A and channel brands LINEAR ▪ Emergence of new and digital players CATCH- competing against UP incumbents ▪ Various Hybrid B2B D2C pay/ad models B Localized Freemium VOD offers (from ‘á la carte’ to VOD VOD ‘all you can eat’) NON- LINEAR TV content still speaks to the young demo, but traditional distribution & monetisation no longer meets their needs 10

Strategy update Enhancing our local TV on-demand offers … Local +80% +40% +78% paid sub. registered paid sub. growth user growth growth Hybrid “Freemium” approach Exclusive content (illustrative) Pre-TV and archive 7+ day TV Low ad load Hybrid on-demand BASIC TV PREMIUM Upsell business ON-DEMAND HD quality ON-DEMAND Full ad load model (AD-FUNDED) (PAY) Live signal SD quality 11

Strategy update ...accelerated by more group-wide cooperation Local +80% +40% +78% paid sub. registered paid sub. growth user growth growth 1 Grow local content investments with digital first originals Key priority 2 Develop hybrid business model with strong consumer appeal across the Group Utilising common VOD tech platform across the Group 3 First steps via 6play white-label solution 12

Strategy update Drama becoming a cornerstone for FremantleMedia Warrior The Rain International Drama to be 21% of revenues in 2019 Acquitted s2 Dicte s3 vs. 6% in 2015 My Brilliant Friend The Young Pope American Gods Picnic at Hanging Rock No Offence s2 Baron Noir s2 Acquitted s1 Doctor Doctor Soaps were the starting point … The Miracle 1864 Dicte s2 Baron Noir Deutschland 83 The Heart Guy Dicte s1 Hard Sun No Offence s1 Modus s2 Suspects Modus s1 Ku Damm 56 Wentworth s4 Reformation Deutschland 86 Wentworth s2 Wentworth s3 2013 2014 2015 2016 2017 2018 13

Strategy update Multi-platform networks: RTL Group is well placed … and now command a 15%+ RTL Group MPNs have grown views by 54% yoy to 385bn… share of global YT video views Global views* RTL Group % of 2017 YT video views * #1 globally 337bn #1 in beauty 3% 27bn 3% & fashion 19% 50% 18bn #1 in Europe 5% 24% #1 in Nordics 2.7bn 11% 8% 7 new offices & 5 new countries in 2017-2018 Source: Tubular for US/CAN, W-EU incl UK * Includes: FremantleMedia, BBTV, StyleHaul, Divimove and United Screens 14

Strategy update Total video: strong capabilities within European footprint … premium/trusted inventory… …and ad -sales / tech Leading Pan-EU footprint,... SALES FTA TV KEY PRIORITIES Adjust TV pricing (e.g. higher Educate clients and tap into CPMs) in light of reach decline new pan-EU budgets Leverage scale vs. platforms DIGITAL TECH Innovate ad-formats (e.g. ATV, brand integrations) Markets Core Sales partner Pure Digital 15

Strategy update Total video: ad-stack positioned in growth segments alongside key clients Addressable Addr. Linear OTT & Online Linear Programmatic OTT Linear Contextual Addressable TV (HbbTV) TV STB Video TV Broadcast TV advertising advertising Audience-based linear TV buying HbbTV addressable TV (OTT) Premium connected TV (OTT) > 40 % of mkt 15.4m devices Premium VOD Live TV Live Sports Post-code level targeting 16

Agenda 1 2 3 2018 Q1 2018 Business & strategy highlights update Outlook 17

RTL Group Confirming outlook for 2018 2018 Guidance – Growth Rates REVENUE OUTLOOK Revenue expected to grow In % and € million 1 moderately, predominantly driven Low High by FremantleMedia and digital +2.5% 6,532 +5.0% 6,692 EBITDA OUTLOOK In % and € million EBITDA 2018 1,464 EBITDA expected to be 1,370 2 +1% 1,384 broadly stable in 2018 One-off gain on a normalised basis -1% 1,356 2017 Reported 2017 Operational EBITDA EBITDA 18