BROADCAST, CONTENT, DIGITAL – AN INTRODUCTION TO RTL GROUP February 2015
Agenda
1 WHO WE ARE
2 HOW WE DO
3 WHERE WE GO
2 RTL Group is the leading European entertainment network
LEADING TV BROADCASTER IN EUROPE
LEADING GLOBAL TV ENTERTAINMENT PRODUCER
LEADING MEDIA COMPANY IN ONLINE VIDEO IN EUROPE
3 49 TV channels
Venture with CBS in Asia
Thailand Malaysia Singapore Philippines Indonesia Vietnam
4 29 radio stations in 6 European countries
5 RTL Group, a leading international content producer
operations in 28 countries, creating over 10,000 hours of TV programming a year airing 400 programmes a year worldwide produces number one primetime shows for major broadcasters in almost every major TV market in the world
Idols The X Factor Got Talent
The Price Is Right Take Me Out Wentworth Gute Zeiten, schlechte Zeiten
6 A pioneer in European radio and television
The digital age Radio Luxembourg Télé Luxembourg Launch of goes on air for French-language commercial channels the first time TV Channel
1924 1955 1980 – 1990 2000 – 2010
1924 1930 1940 1950 1960 1970 1980 1990 2000 2010 1990 – 2000
1933 1972 Radio Luxembourg First colour launches broadcast internationally Building families of channels
7 A truly European group
1931 1954
1997
2000 2013 *24.1% *75.1% Publicly traded on the Bertelsmann Frankfurt/Main, Brussels and Luxembourg Stock Exchanges
As of 2 October 2013 * Excluding 0.76% which is held collectively as treasury stock by RTL Group and one of its subsidiaries
8 Agenda
1 WHO WE ARE
2 HOW WE DO
3 WHERE WE GO
9 Full-year results 2013: impressive results in tough economic environment
5,889 million 106% € Cash conversion rate Revenue
YoY growth: 19.6% YoY growth: EBITA Margin +6.9% +45.7%
€ 1,152 million 870 million Reported EBITA continuing operations € Net profit
10 Broadcast: status of market positions
RTL Group audience share in 2013 and position in target group
Germany Netherlands Belgium 30.6% 33.5% 36.4% No.1 Hungary France (Radio) 38.0% 18.3%
France (TV) Spain Croatia 22.5% 31.0% 27.9% No.2
RTL Group No. 1 or 2 in all markets of operation
11 RTL Group is among the global leaders in online video
Our content offering Growing online video business Top 5 worldwide
Online video views Online video ranking Video views Multi-platform catch-up TV per month in bn1) 1 in billion services 1 Google / YouTube 70.6 2 Facebook 31.8 3 AOL 5.8 5.0x 4 VEVO 4.5 2 Web original content 5 RTL Group 4.1 17 35 6 Maker Studios 2.6 7 Fullscreen 1.8 7 8 Dalymotion 1.7 3 Multi-Channel Networks 9 Yahoo 1.5 2012 2013 2014e 10 Hulu 1.4
1) ComScore Video Metrix, based on monthly average video views in Q3/2014; excluding Asia and Russia, ad networks and ad exchanges; RTL Group underlying figures are based on internal measurement, are restated and grouped for comparison, StyleHaul views are included on a pro forma basis, excluding minority stakes in Divimove and Atresmedia as well as 3rd party video ad sales
12 Agenda
1 WHO WE ARE
2 HOW WE DO
3 WHERE WE GO
13 Growing our broadcast portfolio
BROADCAST Newly launched channels growing above expectations Strengthen family of channels ✔
Retransmission fees have become significant profit contributors in Germany, Grow France, Netherlands and Belgium non-ad business ✔ #1 or #2 in 8 European countries Leading broadcaster: RTL CBS Asia Entertainment Network Expand into high 53 TV channels and launched two channels in Southeast Asia 28 radio stationsgrowth markets ✔
14 Family of channels Constant expansion to counter fragmentation
Successful launches Launched in 2014 Germany PAY GER ✔
FR ✔ Launched on 8 May 2014 Premium documentary channel
Croatia FTA NL ✔
HU ✔ Kids and family channel, since 11 January 2014 Average audience share: 19.3 per cent*
* Average daytime (7:00 to 20:00) audience share in the first half of 2014; target group: viewers aged 4 to 14
15 Geographic expansion Joining forces in Asia
Two pay-TV channels already Partnership launched in 5 markets
Malaysia ✔ #1 in Europe #1 in the US Singapore ✔
Philippines ✔
Launched Launched Thailand ✔
Family entertainment targeting Male-skewed entertainment basic pay-TV around action, sports and reality Indonesia ✔
16 Broadcast Priorities for 2014 and beyond
1 Invest in top content
2 Grow new channels
3 Expand footprint in high growth markets
4 Grow second revenue stream
17 Create market-leading content
CONTENT CONTENT Resizing of resources concluded
Initiatives to drive format development in place Maintain leading position ✔
Acquisitions to strengthen scripted and local entertainment productions Rebalance portfolio ✔ #1 global TV entertainment content producer Growth of online revenues by 62% YoY Deepen ✔ 9,000 hours ofInvestments programming; to strengthen online digital exploitation Distribution intoproduction 200+ territories and distribution
18 Content Priorities for 2014 and beyond
1 Maintain core business
2 Diversify portfolio
3 Grow and develop the network
4 Build a scalable digital business
19 Driving digital transformation
DIGITAL Increase of total digital revenue +26%DIGITAL YoY*
Structural move in digital monetisation: Grow online ad acquisition of SpotXchange and non-ad business ✔ Europe’s #1 media company in online video
Currently generating 4.1 bn video views Expand per month non-linear services ✔
Leading European media Cornerstone investments incompany leading MCNs in online video Enter multi-channel on Youtube ✔ Strong online sales houses network business Investments in fashion and comedywith multi verticals-screen expertise
* 2012 non-audited/reviewed
20 Digital Priorities for 2014 and beyond
1 Grow online business
2 Expand non-linear services
3 Develop multi-channel network business
4 Strengthen online advertising sales capabilities
21 THANK YOU FOR ATTENTION Broadcast, Content, Digital – an introduction to RTL Group
February 2015