EDITION 2016 FULL YEAR RESULTS ENTERTAIN. INFORM. ENGAGE. KEY FIGURES SHARE PRICE PERFORMANCE 01/01/2016 – 31/12/2016 + 6.8 % MDAX INDEX = 100 – 7.6 % EURO STOXX 600 MEDIA – 9.5 % RTL GROUP – 21.7 % PROSIEBENSAT1 RTL Group share price development for January to December 2016 based on the Frankfurt Stock Exchange (Xetra) against MDAX, Euro Stoxx 600 Media and ProSiebenSat1 11.5 % OTHER 10.7 % DIGITAL 48.0 % 21.2 % TV ADVERTISING CONTENT 4.5 % PLATFORM REVENUE 4.1 % RADIO ADVERTISING RTL Group Revenue Split In 2016, TV advertising accounted for 48.0 per cent of RTL Group’s total revenue, making the Group one of the most diversified groups when it comes to revenue. Content represented 21.2 per cent of the total, while greater exposure to fast-growing digital revenue streams and higher margin platform revenue will further improve the mix. 2 RTL Group Full-year results 2016 Key figures REVENUE 2012 – 2016 (€ million) EBITA 2012 – 2016 (€ million) 16 6,237 16 1,205 15 6,029 15 1,167 14 5,808 14 1,144* 13 5,824* 13 1,148** 12 5,998 12 1,078 * Restated for IFRS 11 * Restated for changes in purchase price allocation ** Restated for IFRS 11 NET PROFIT ATTRIBUTABLE TO RTL GROUP SHAREHOLDERS 2012 – 2016 (€ million) EQUITY 2012 – 2016 (€ million) 16 720 16 3,552 15 789 15 3,409 14 652* 14 3,275* 13 870 13 3,593 12 597 12 4,858 * Restated for changes in purchase price allocation * Restated for changes in purchase price allocation TOTAL DIVIDEND/ MARKET CAPITALISATION* 2012 – 2016 (€ billion) DIVIDEND YIELD PER SHARE 2012 – 2016 (€ ) (%) 16 10.7 16 4.00* 5.4 15 11.9 15 4.00** 4.9 14 12.2 14 5.50*** 6.8 13 14.4 13 7.00**** 10.0 12 11.7 12 10.50 13.9 * As of 31 December * Including an interim dividend of € 1.00 per share, paid in September 2016 ** Including an extraordinary interim dividend of € 1.00 per share, paid in September 2015 *** Including an extraordinary interim dividend of € 2.00 per share, paid in September 2014 **** Including an extraordinary interim dividend of € 2.50 per share, paid in September 2013 CASH CONVERSION RATE* 2012 – 2016 (%) PLATFORM REVENUE* 2012 – 2016 (€ million) 16 97 16 281 15 87 15 248 14 95 14 225** 13 106 13 185 12 101 12 175 * Calculated as operating pre-tax free cash flow as a percentage of EBITA * Revenue generated across all distribution platforms (cable, satellite, IPTV) including subscription and re-transmission fees ** Restated DIGITAL REVENUE* 2012 – 2016 (€ million) ONLINE VIDEO VIEWS 2012 – 2016 (billion) 16 670 16 274.0 15 508 15 105.0 14 295 14 36.4 13 233 13 16.8 12 188 12 6.9 * Excluding e-commerce, home shopping and platform revenue for digital TV 273 MILLION VIEWERS WATCH TV 3h55 3 out of 4 AVERAGE VIEWING TIME DURING PRIME TIME EUROPEAN IN EUROPE (2015) IN EUROPE TV HOUSEHOLDS OWN A HDTV 3 RTL Group Full-year results 2016 “EXCLUSIVE CONTENT IS THE POWER ENGINE FOR EVERYTHING WE DO IN THE TOTAL VIDEO UNIVERSE” Joint statement from GUILLAUME DE POSCH and ANKE SCHÄFERKORDT, Co-Chief Executive Officers of RTL Group “2016 was another record year for RTL Group. We continued our develop our digital businesses where global scale in content growth track, with both revenue and EBITA at an all-time high, and aggregation and advertising technology becomes ever more at the same time, our three most important business units – important. This is paying off: our digital businesses continued to Mediengruppe RTL Deutschland, Groupe M6 and FremantleMedia grow dynamically and we already reached our target that 10 per – reported higher operating profits. Mediengruppe RTL Deutschland cent of the Group’s total revenue originate from digital. generated a record profit for the fifth consecutive year, exceeding the level of € 700 million for the first time. Groupe M6 profited from The other investment goal is to further grow content production. a positive one-off effect financially and from the Euro 2016 in terms FremantleMedia is making sound progress with its push into high- of audience shares. We are a very cash-generative business, giving end drama. Following the premiere of The Young Pope in October us all financial means for both – further investments and attractive 2016, we are looking forward to seeing American Gods going on air dividend payments to our shareholders. in spring. In a ground-breaking deal with Amazon, we were also able to bring this extraordinary series to viewers worldwide – thanks to While we currently review our options for BroadbandTV, this does the close collaboration between the production and distribution not change our overall strategy – broadcast, content, digital – which business of FremantleMedia. Exclusive content like this is the power focuses on two main investment goals. One is to further expand and engine for everything we do in the total video universe.” 4 RTL Group Full-year results 2016 RECORD REVENUE, EBITA, EBITDA Full-year revenue up 3.4 per cent to € 6,237 million EBITA up 3.3 per cent to € 1,205 million, EBITDA up 3.8 per cent to € 1,411 million Digital revenue1 continues to grow dynamically, up by 31.9 per cent to € 670 million Attractive shareholder returns: total dividend of € 4.00 per share for the fiscal year 2016, representing a dividend yield of 5.4 per cent Luxembourg, 9 March 2017 − RTL Group announces its audited results for the year ended 31 December 2016. FINANCIAL SUMMARY Year to Year to December December 2016 2015 Per cent € m € m change Revenue 6,237 6,029 +3.4 Underlying revenue2 6,202 6,020 +3.0 EBITA3 1,205 1,167 +3.3 EBITA margin (%) 19.3 19.4 EBITDA4 1,411 1,360 +3.8 EBITDA margin (%) 22.6 22.6 EBITA 1,205 1,167 Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries (15) (6) Re-measurement of earn-out arrangements 1 10 Gain from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree 6 4 EBIT 1,197 1,175 Net financial (expense) / income (18) (12) Income tax expense (363) (300) Profit for the period 816 863 Attributable to: – Non-controlling interests 96 74 – RTL Group shareholders 720 789 (8.7) Reported EPS (in € ) 4.69 5.14 1 “Digital” refers to the internet-related activities with exception to online sales of merchandise (“e-commerce”). Digital revenue spreads over the different categories of revenue, for example other advertising sales, the production/distribution of films, programmes and other rights and the professional services, excluding e-commerce, home shopping and platform revenue 2 Adjusted for scope changes and at constant exchange rates 3 EBITA represents earnings before interest and taxes excluding impairment of goodwill and of disposal group, and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries, impairment of investments accounted for using the equity method, re-measurement of earn-out arrangements, and gain or loss from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree, see note 3 to the Consolidated Financial Statements in the Annual Report 2016 4 EBITDA represents EBIT excluding amortisation and impairment of non-current programme and other rights, of goodwill and disposal group, of other intangible assets, depreciation and impairment of property, plant and equipment, impairment of investments accounted for using the equity method, re-measurement of earn-out arrangements, and gain or loss from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree, see note 3 to the Consolidated Financial Statements in the Annual Report 2016 5 RTL Group Full-year results 2016 HIGHEST ORGANIC REVENUE GROWTH RATE SINCE 2010 ■ Group revenue increased 3.4 per cent to conversion6 of 97 per cent (2015: 87 per cent). Net € 6,237 million (2015: € 6,029 million), mainly driven financial debt6 was € 576 million at the end of by growing revenue at Mediengruppe RTL 2016 (2015: net financial debt of € 671 million) Deutschland and dynamic growth in digital revenue; underlying/organic growth rate2 was 3.0 per cent ■ In the fourth quarter of 2016, Group revenue was up 6.3 per cent at € 2,007 million (Q4/2015: € 1,888 ■ Platform revenue5 was up 13.3 per cent to million), while EBITA was stable at € 449 million € 281 million (2015: € 248 million) (Q4/2015: € 451 million). This reflects a one-off charge at RTL Radio (France) following accounting ■ RTL Group’s revenue is well diversified with misstatements over a number of previous years 52.1 per cent from broadcast advertising (TV and and a decrease at RTL Nederland, partly balanced radio), 21.2 per cent from content, 10.7 per cent by higher EBITA contributions from Mediengruppe from digital activities, 4.5 per cent from platform RTL Deutschland, Groupe M6 and FremantleMedia. revenue and 11.5 per cent from other revenue Adjusted for the one-off charge at RTL Radio (France), fourth quarter EBITA was up 2.0 per cent ■ EBITA also reached a new record level, up 3.3 per year on year cent to € 1,205 million (2015: € 1,167 million). The increase is mainly due to higher EBITA contribution ■ RTL Group’s Board of Directors has proposed from Germany and a positive one-off effect at a final ordinary dividend of € 3.00 per share for Groupe M6 from the settlement of the M6 mobile the fiscal year 2016. This proposal is a reflection of contract, amounting to € 42 million the Group’s strong cash flows, future investment plans and its target net debt to full-year EBITDA ■ EBITA margin was stable at 19.3 per cent (2015: ratio6 of 0.5 to 1.0 times.