Strong Performance in a Challenging Year Gerhard Zeiler on RTL Group’S Results 2008

12 March 2009

week 11

Strong performance in a challenging year Gerhard Zeiler on RTL Group’s results 2008

Germany France Peter Kloeppel on the Groupe M6 publishes its “mega election year” results for the year 2008 The Netherlands Belgium Zeg’ns AAA: RTL Digital is innovating a comeback after 16 years week 11

COVER: Gerhard Zeiler, CEO of RTL Group.

Strong performance n a challenging year 2 week 11 the RTL Group intranet

“RTL Group is a healthy company – profitable, debt-free, with strong cash flows” RTL Group increased revenue and EBITA, for the seventh consecutive year. Backstage spoke to Gerhard Zeiler, CEO of RTL Group, about the company’s performance in 2008 and the outlook for 2009. Gerhard Zeiler, CEO of RTL Group Luxembourg - 12 March 2009

On 12 March, RTL Group announced its ratings in 2008 were markedly influenced by audited results for the fiscal year 2008. The the European football championship and the Group’s operating result (EBITA – Earnings Olympic Summer Games in Beijing, as both Before Interest, Taxes and Amortisation) excee- events were televised by the public broadcas- ded EUR 900 million for the first time and ters ARD and ZDF, Mediengruppe RTL increased by 2 per cent to EUR 916 million – Deutschland remained the clear market leader despite a tougher economic climate. Group in the key 14 to 49 target group. The flagship revenue increased by 1.2 per cent to EUR channel RTL Television continued to be the 5,774 million (2007: EUR 5,707 million). number one among young viewers, by a large Adjusted for portfolio changes and at constant margin and for the 16th consecutive year. exchange rates, underlying revenue was up 2.6 per cent.

In particular, strong performances at Mediengruppe RTL Deutschland and FremantleMedia contributed to the increase in profits. The reported EBITA margin improved to 15.9 per cent (2007: 15.7 per cent), the highest ever.

Net profit attributable to RTL Group shareholders decreased to EUR 194 million (2007: EUR 563 million), mainly due to an impairment of goodwill of the UK TV activities amounting to EUR 337 million. This impairment is primarily a result of the significant worsening in the UK advertising market conditions, which the company has experienced since September 2008.

In Germany, RTL Group’s profit centre had its best year ever. EBITA rose 25.6 per cent and Mediengruppe RTL Deutschland significantly strengthened its leading position in the German TV advertising market. Although audience

Elmar Heggen, CFO of RTL Group 3 week 11 the RTL Group intranet

RTL Group’s worldwide production arm Backstage spoke to RTL Group’s CEO Gerhard FremantleMedia reported growing revenue and Zeiler about the company’s performance in EBITA figures for the fifth consecutive year. 2008, its strategy and its outlook for 2009. EBITA increased significantly by 18.3 per cent, mainly driven by higher earnings from Many media companies and broadcasters FremantleMedia North America. reported lower revenue and operating results during the last weeks. How is the In France, Groupe M6 reported stable revenue state of RTL Group? despite a significant slowdown of the country’s In spite of increasingly difficult advertising TV advertising market, while the company’s markets in Europe, in 2008 RTL Group increa- EBITA was impacted by a major programme sed its revenue and operating result for the investment for the 2008 European football seventh year running. In particular, strong per- championship. M6 was the only major terres- formances at Mediengruppe RTL Deutschland trial channel with stable audience figures in and FremantleMedia contributed to the increa- prime time, benefiting from the record audien- se in profits. ces watching the Euro 2008 broadcasts. In the digital arena, the group’s free DTT channel W9 RTL Group is a healthy company – profitable, continued its rapid audience and revenue debt-free, with strong cash flows. We have a growth and generated positive EBITA for the broad-based setup, and we’re active in many first time. As a result, the family of channels countries and business areas. This is the result strategy has paid off for Groupe M6: despite of the hard work of our creative and passiona- accelerated audience fragmentation, the com- te employees and of our excellent management bined total audience share of M6 and W9 team which knows the needs of our business. actually increased year on year. In view of an increasingly difficult economy, one RTL Nederland implemented a restructuring thing still holds true: television is and will programme at the end of 2008. One-time remain the leading medium. Television delivers charges in connection with this restructuring, great value, for our viewers and for our adverti- amounting to EUR 18 million, impacted sers. While the structure of RTL Group’s RTL Nederland’s EBITA, which was down 17.6 business model remains intact, there is a need per cent in total. to continuously optimise our operations, increasing efficiencies and reviewing costs across the board.

Gerhard Zeiler and Elmar Heggen during an Operations Management Committee meeting 4 week 11 the RTL Group intranet

And what does this mean for RTL Group’s What about geographic expansion – is this shareholders? still on the agenda? Our first priority remains to create value for all In 2008, the leading European entertainment our shareholders. network again grew larger: RTL Group entered the Greek market by acquiring a 66.6 per cent Based on the 2008 results and the cash majority shareholding in Alpha Media Group. position, we propose a total dividend of EUR With currently 45 TV channels in 11 European 3.50 per share – consisting of an ordinary divi- countries, RTL Group has a very well-balanced dend of EUR 1.40 and an extraordinary divi- portfolio as a TV broadcasting company. dend of EUR 2.10. I am very proud that we are able to pay our shareholders a significant divi- Of course, we’ll continue looking at opportuni- dend of more than EUR 500 million – and still, ties, in various countries – this is our everyday we’re not only debt-free, but we’ll also continue business. However, at times like this, the to have a significant positive net cash position. investment criteria are stricter and we are staying cautious. If there should be interesting If this proposal is accepted at the Annual investment opportunities – at decent prices General Meeting next month, it would mean and which fit to our strategy – we are well posi- that we have returned EUR 1.8 billion over the tioned to go for them. last three years to our shareholders. Turning to the current economic situation – What were the major strategic achieve- what is RTL Group’s outlook for 2009? ments in 2008, especially with regard to the We are, without any doubt, operating in a very accelerated digitalisation of the media challenging time and are experiencing a business? substantial slowdown in advertising bookings. First of all: our position of strength is the result We will respond to this by focusing on our core of our strategy, which is based on strict invest- business, and by reviewing all costs and ment criteria. structures. This will result in a significantly lower cost base in all of our operations. The digital world offers RTL Group, as both a content company and a brand company, many Given the current state of the advertising mar- opportunities for new business models. The kets, and the very short-term bookings cycle, it Group has defined clear priorities for the digital is impossible to give reliable full-year world: the first is to develop our strong families guidance. But it has to be expected that the of TV channels into multi-platform families. We profitability level will be down compared to call this ‘moving with our audiences’. The 2008. second is to make further online investments in all areas with high growth potential that com- Nevertheless, due to the strength of our various plement the company’s core business. businesses, our balance sheet and the diversi- ty of our portfolio, we are confident that we will In 2008, we significantly stepped up our online overcome the challenges facing us. activities with targeted acquisitions and investments. RTL Group has built up comprehensive catch-up TV services in its major markets Germany, France, the Netherlands and the UK. In total, our online platforms across Europe registered more than 500 million video streams in 2008, which delivered professionally produ- ced content – from highlight clips to complete Find all related episodes of shows and series – to our viewers. documents on RTLGroup.com

5 week 11 the RTL Group intranet

Peter Kloeppel on the “mega election year” Germany has numerous elections coming up this year. In the latest issue of Journalist magazine, Peter Kloeppel discusses how RTL Television plans to position itself in the political coverage. Germany - 6 March 2009

In the “mega election year” of 2009, Germans will be asked to cast their ballots more than once: not only are the European elections coming up, Germany also has local elections, regional elections (for the state parliaments) Peter Kloeppel, Editor-in-chief of RTL Television and federal elections in September. Peter Kloeppel, Editor-in-chief of RTL Television, declares: “We want to make the elections more of a topic in all our programmes – but not just by asking: what’s happening today? The idea is to clarify the issues that are preoccupying people, and to answer as many of the viewers’ questions as possible, especially the ones about the long-term implications of current events.”

For instance, starting in August there will be six weeks during which coverage will focus on a specific topic each week, such as the economy, crime, education and integration. In addition, there will be reports from the election bus with which RTL Television will be on tour throughout Germany. Peter Kloeppel: “We don’t just want to ask the politicians in Berlin, but bring them together with the people who are affected by political decisions.”

Kloeppel feels that interesting, comprehensible coverage of the elections is particularly important. “It is part of our duty as journalists that we think about how to present politics in such a way that it appears as interesting to viewers as it actually is.”

In the lead-up to the European elections in June, Kloeppel plans to provide extensive coverage in cooperation with other RTL Group channels. In this way, he says, other viewpoints beyond the German perspective can be presented as well. 6 week 11 the RTL Group intranet

Delighted by growing usage The news portal N-TV.de has now a greater reach on the Internet than almost all the major German newspapers. Germany - 11 March 2009

In the past, the most popular Internet news sites N-TV.de increased its number of page impres- were usually online offshoots of major newspa- sions from an average 107.5 million per month pers and magazines. But recently people are in 2007 to a good 121 million in 2008 – an increasingly noticing one excellent news site, increase of 12.6 per cent. The website delivered which has become one of the busiest on the a peak performance last October when its Internet – but which is published by a television coverage of the US elections and the economic channel: N-TV.de, now in its tenth year, is crisis caused the number of visits to shoot up to enjoying an ever-increasing level of popularity. 21 million for the month, while the number of individual page views rose to 141 million. The Last year, the news channel’s online offering company believes the financial crisis has became the number four most highly trafficked generally boosted interest in news, especially German news site (by monthly visits) for the first business news. This is evidenced among other time, according to the Information Community things in the very gratifying development of its to Determine the Reach of Advertising Media investment site Teleboerse.de, launched in (IVW) survey. In addition to the continuous autumn 2007, which it says has seen faster increase in the number of page impressions and growth than any of its competitor. visits, N-TV is also expecting an increase in the number of unique users for the fourth quarter of N-TV.de continued to develop well in the new 2008 – the Association of Online Research year, with the number of visits in January gro- (AGOF) figures will be published shortly. wing 20 per cent year on year to 19.1 million. Page impressions hit 141.1 million – a six per “We have one of the most extensive and most cent year-on-year increase and an all-time high. up-to-the-minute news offerings on the net,” In February, numbers dropped to 18.1 million said N-TV COO Julian Weiss at the end of 2008 visits and 132.9 million page impressions, main- in an interview with the industry newsletter ly due to the month being three days shorter. Meedia.de. “The reach of N-TV.de is greater than that of almost every major newspaper’s The 40-strong N-TV.de editorial team in Berlin online offer. N-TV.de is the only online news site has big plans for the 2009 jubilee year. After the owned by a commercial TV channel that is up news channel’s recent overhaul of its mobile there with the major players.” portal, Mobil.N-TV.de, Weiss says N-TV’s online presence will be given a facelift in May. The aim For example, in 2008 N-TV.de recorded 16.2 is to present the news content in a more user- million visits per month, according to the IVW friendly, structured and fresher way. Among analysis, putting it ahead of the Süddeutsche other things, there will be an even wider selec- Zeitung and the Frankfurter Allgemeine Zeitung. tion of high-quality video content from the TV The competitor’s site, N24.de, scored an avera- colleagues in Cologne. The revamp will be pro- ge 3.6 million visits per month, according to the moted with an advertising campaign, leading to IVW. Ahead of N-TV.de in 2008 were the news even more growth – in other words, more users sites Spiegel.de, with an average 90.9 million and more revenues. visits, Welt.de with 19.7 million visits and Focus.de with 18.5 million.

7 week 11 the RTL Group intranet

Protection of minors on the Internet Wer-kennt-wen.de joins the Freiwillige Selbstkontrolle Multimedia-Diensteanbieter in signing a code of conduct governing the protection of minors and privacy in social networks. Germany - 12 March 2009

Wer-kennt-wen.de has joined with other major other users, and building users’ awareness of German network operators under the these options through clear advisories within Freiwillige Selbstkontrolle Multimedia- the platform. Diensteanbieter (FSM) umbrella to develop extensive and consistent industry standards for Fabian Jager (26), one of the two Managing the protection of minors and of personal infor- Directors of Wer-kennt-wen.de, comments: mation in social networks. “Our involvement in the FSM to protect Check out minors is very important to us and an Among other things, the voluntary declaration expression of the responsibility we feel to fsm.de includes a commitment to comprehensive pri- our 5.8 million members. The ongoing evalua- vacy setting options for users, a way to submit tion of the code of conduct will also allow us to complaints about violations against the rules of adapt future developments in the protection of the community directly, the option of “ignoring” minors to the needs of our users.”

Patrick Ohler and Fabien Jager, Managing Directors and founders of Wer-kennt-wen.de 8 week 11 the RTL Group intranet

Groupe M6 publishes its results for the year 2008 For the year 2008, Groupe M6 reports near-stable consolidated revenues, while net profit declined by 17.9 per cent due to the worldwide economic downturn. France - 11 March 2009

In 2008, Groupe M6’s consolidated revenues Digital channels confirmed their role as growth were almost stable at EUR 1,354.9 million drivers, with a strong increase in EBITA (down 0.1 per cent). The current operating contribution to EUR 18.9 million vs. EUR result (EBITA) amounted to EUR 194.0 million, 0.3 million in 2007. W9 reported its down 17.8 per cent, reflecting the decline in first profitable year. channel M6’s contribution due to the cost of the Euro 2008 broadcast rights. Excluding Groupe M6’s net profit amounted sports events, the cost of programming and to EUR 138.4 million, down 17.9 Find out more on other operating expenses were well under per cent. control, reflecting the Group’s ability to adapt Backstage itself to a economic environment that began to deteriorate in the second half of 2008.

No one excluded Thursday 12 March marks the National Hearing Day in France. In 2008, with more than 8,000 hours of programmes close-captioned on M6 and W9, the accessibility of programmes for everyone is a priority for Groupe M6. France - 12 March 2009

Groupe M6 is pursuing its policy of programme thematic channel W9 (45 per cent of its accessibility for the deaf and the hard of hea- programmes). All programmes on M6 will be ring this year by close-captioning every type of close-captioned by 2010. programme being offered to its audiences: drama, cartoons, news, magazines, music This year, the new production department shows, video clips and football matches. launched in mid-December will make it possible to generalise close-captioning on all A total of more than 8,000 hours of program- channels in the group and increase accessibili- mes were close-captioned in 2008. This inclu- ty of programmes on Paris Première, Téva and ded 4,110 hours for the M6 channel (51 per the three music channels (M6 Music Hits, M6 cent of its programmes) and 4,000 hours for the Music Club and M6 Music Black).

9 week 11 the RTL Group intranet

Web-TV in a whole new quality MySpace and Grundy UFA are going live with a new Web series called Wir sind größer als Gott. Germany - 9 March 2009

Wir sind größer als Gott (We Are Bigger Than A banner campaign with a casting call for a God) is MySpace Germany’s third video guest role in the new Web-TV comedy has content production designed specifically for already been launched on MySpace. the Internet; Grundy UFA has led the market in Starting 16 March, all bands on fictional TV production for year with various for- MySpace can enter to win a year’s mats such as Gute Zeiten – Schlechte Zeiten, worth of rehearsal-room snacks. And and has already celebrated some Web TV suc- as of 7 April, exclusive bonus cesses as well. The ten-part series will be onli- content and outtakes will be on Check out ne starting 7 April 2009 – new episodes (webi- view in the Mars Planets partner www.myspace.com/ sodes) will be posted Tuesdays and Thursdays. community. wirsindgroesseralsgott www.myspace.com/ The new Web series marsplanets tells the story of two moderately talented rockers who want to make it big. Unfortunately, no one is interested in their music. So the two take an old res- taurant and turn it into a club to give themselves a stage. It would have been a good idea – if it hadn’t been hat- ched by two total losers.

Grundy UFA’s new web series at MySpace 10 week 11 the RTL Group intranet

A comeback after 16 years On 7 March, Zeg’ns AAA – one of Holland’s most popular comedy programmes ever – returned to the screens after 16 years, and promptly attracted more than two million viewers on RTL 4 The Netherlands - 10 March 2009

A lot has happened at Dr. Van der Ploeg’s “Comedy has returned to RTL 4,” says Erland practice during the last 16 years. On Saturday Galjaard, RTL 4 Programme Director. “The the first of 13 new episodes was shown on RTL comeback of Zeg’ns AAA was a success. I’m 4. The sequel not only delighted former fans; it particularly pleased that we have succeeded in was also very popular with the demographic of capturing a new, young audience.” Another shoppers aged 20 to 49. The first episode of popular show, Ik Hou Van Holland, followed the comedy series achieved an excellent Zeg’ns AAA, attracting a Saturday evening market share of 35 per cent, making Zeg’ns audience of 1.5 million viewers. AAA (Say ‘Aah’) the most-watched show of the evening.

Zeg’ns AAA returning to screens after 16 years

11 week 11 the RTL Group intranet

RTL Matin embarks on a poster advertising campaign With some four million listeners tuning in every day, RTL Matin is the most-listened-to morning programme in France. RTL Radio has decided to underpin its success with a national poster campaign. RTL Matin’s editorial team France - 6 March 2009

Branded “La matinale la plus écoutée” (the look at it on the street during one month. In morning programme the most listened to), this Paris, the posters can also be seen on the campaign consists of seven posters showca- backsides of buses. This new campaign of the sing six personalities of RTL Matin. Each of the radio station will be complemented by a media first six posters shows one of the well-known plan and will also be taken up by the national speakers of the popular morning slot. They are press – both by daily and weekly publications – photographs taken in everyday situations in the as well as by the regional daily press, during the studios of RTL Radio, a means of adding a entire month of March. touch of spontaneousness and of establishing proximity with the audience.

The seventh picture depicts the journalists and humorists having breakfast together on the ter- race of a Paris Café. This is to show that the success of the morning programme is to be attributed to a dedicated work team and a sound team spirit.

The campaign was revealed to the public on Monday 2 March. The nationwide poster campaign will allow the French people to have a

ALAIN DUHAMEL LA MATINALE LA PLUS ÉCOUTÉE* - PHOTO : CAROLINE DOUTRE/ABACA PRESS

*Source : Médiamétrie, 126 000, LàV 7H-9h30, Novembre-Décembre 2008,13 ans et +, AC, PDA et QHM.

Elizabeth Martichoux, presenter120x176 duhamel.indd 1 of the news at 8:00, Pascale2/03/09 11:43:05 Clark, presenter of La revue de la presse et du Net at 8:20, Vincent Parizot, presenter of RTL Matin, Alain Duhamel, presenter of Le fait politique at 7:45, Jean Michel Aphatie, presenter of L’invité de RTL at 7:50, Laurent Gerra presenting his “billet d’humour” at 8:50 12 week 11 the RTL Group intranet

Following the adventures of Nouvelle Star Broadcast on Wednesday night in prime time on Plug RTL, the French talent show Nouvelle Star can also be watched live on its official Belgian web site. The team of Nouvelle Star (from left to right): Lio, Sinclair, André Manoukian, Virginie Guilhaume and Philippe Manœuvre Belgium - 9 March 2009

This year, with Nouvellestar.plugrtl.be, Fans of Nouvelle Star can also watch videos RTL Digital is focusing on interactivity by offe- exclusively devoted to the contestants, pre- ring Internet users the possibility of chatting selections, behind the scenes and the judges with other fans or with friends while watching as well as all the auditions, the “unforgettables” the programme live on the web site. and the best televised performances.

Check out Nouvellestar. plugrtl.be

Screenshot of Nouvellestar.plugrtl.be 13 week 11 the RTL Group intranet

Innovative news In French-speaking Belgium, news web site RTLinfo.be is offering Internet users a very practical new service. “L’info en vidéo”. “L’info en vidéo” on rtlinfo.be Belgium - 9 March 2009

“L’info en vidéo” is presented as a rolling band Updated regularly, this new service is sure to at the top of the screen on the RTLinfo.be site. please anyone who wants to scan the news in The new heading appears on every page on the a minimal amount of time and discover the best site, making it easy to watch the latest news images of the moment. These images come reports. These short video clips deliver the from RTL-TVI teams in the field and from essential points of the news, whether serious or around the world. More than ever, RTLinfo.be’s of a lighter nature, in about 10 seconds. ambition is to deliver clear news and multimedia (text, photos, sound, videos) with the possibility of commentary.

Screenshot of RTLinfo.be 14 week 11 the RTL Group intranet

Behind the scenes of Belgian politics Bel RTL invites its listeners to wander the maze of a parliamentary assembly in the company of an editorial journalist from Bel RTL. Belgian parliament in Brussels Belgium - 11 March 2009

What purpose does a parliamentary assembly liament. Belgium counts no fewer than five serve? How do our members of parliament parliaments: Brussels, Walloon, German-spea- work? Anyone who ponders these questions king, Flemish and that of the French-speaking and would like to follow journalists as they pro- community. duce their news reports during the coverage of the 2009 elections can go to the radio station’s The five listeners selected will be invited to give web site and register. They may be one of five their reactions on Bel RTL Soir, the radio’s winners drawn, with one listener for each par- evening news magazine.

Making pedestrians a priority Spain’s biggest campaign to improve road safety is celebrating its first anniversary. In the year ahead, the focus of the campaign will lie on the safety of pedestrians in road traffic. Press conference on the occasion of Ponle Freno’s first anniversary Belgium - 11 March 2009

Grupo Antena 3 looks back with some pride on various Ponle Freno projects and partners. the first year of its traffic safety campaign To this end, Ponle Freno has established ‘Ponle Freno’, during which numerous projects a presence on a wide range of platforms were successfully implemented. And although including YouTube, Twitter, Facebook, the number of traffic deaths dropped by 560 to etc. The campaign is also advocating Check out 2181 last year – a 20 per cent decline – the that all the money from traffic fines be declared goal of the Ponle Freno campaign is used for research, aid to victims, and ponlefreno.com still to bring this figure down to zero. pushing for amendments to Spain’s road traffic regulations. 40 per cent of urban traffic fatalities were pedestrians, which makes them one of the Fundación Antena 3 will step up its involvement most vulnerable groups in road traffic. As part in Ponle Freno Junior next year, a campaign to of its mission to change this state of affairs, intensify theoretical and practical traffic educa- Ponle Freno launched the “Plataforma tion in schools. Also planned is a second edi- Ciudadana” (Citizens Platform), which creates tion of the Premios Ponle Freno traffic safety an online connection between citizens and the award, which made its debut in January 2009. 15 week 11 the RTL Group intranet

Partnership for music Music videos and specials by Universal Music are now available on the video clip portal Clipfish.de. Germany - 6 March 2009

When women lay down the law… On Saturday 7 March, M6 launched its new US series, Women’s Murder Club, based on the bestsellers by James Patterson, attracting 2.7 million viewers – a market share of 24.4 per cent in the target group of housewives under 50. France - 6 March 2009

Young and urban Last year, the family of radio stations in France (RTL, RTL 2 and Fun Radio) applied for a frequency for Radio 128, a digital station that will be devoted to new French talent and production. Radio 128’s Web site has just been put online. France - 10 March 2009

Poker Face in India Another first for FremantleMedia Asia and for the Indian television landscape: Poker Face launched on 2 March 2009 on India’s newest channel Real. The Netherlands - 4 March 2009

Their books do the talking On 8 March, best-selling novelists Anna Gavalda and Fred Vargas had an appointment with RTL Radio France, giving one of their rare interviews. France - 11 March 2009

Angelina Jolie and Brad Pitt glitter on W9 With 1.4 million viewers, the film Mr & Mrs Smith broadcast on Monday night in prime time allowed W9 to register the absolute highest DTT audience rating. France - 11 March 2009 16 week 11 the RTL Group intranet

People New Managing Director in Indonesia Carl Zuzarte Singapore - 10 March 2009

FremantleMedia Asia has announced the appointment of Carl Zuzarte as the Managing Director of FremantleMedia Indonesia.

Before joining FremantleMedia, Zuzarte was the Head of MTV Content and Creative for Viacom Brand Solutions and MTV Southeast Asia. He worked extensively with clients across the Asia Pacific region to create and implement multi-platform branded campaigns while he managed the international MTV Southeast Asia feed. Prior to his last role at MTV, Zuzarte was Executive Producer for On-Air Promos at Discovery Networks Asia. He steered the development of all aspects of channel branding, promotion and creative services for the factual networks (Discovery Channel and Discovery Science) for the Asia Pacific markets.

Carl Zuzarte will be based in FremantleMedia’s Indonesian office and report to Patrick Schult, CEO of FremantleMedia Asia, based in Singapore.

17 http://backstage.rtlgroup.fr http://backstage.rtlgroup.com http://backstage.rtlgroup.de

Publisher RTL Group 45, Bd Pierre Frieden L-1543 Luxembourg

Editor, Design, Production RTL Group Corporate Communications and Marketing