The leading European entertainment network Agenda
● INTRODUCTION
○ Business Review
○ Financial Review
○ Outlook
The leading European entertainment network RTL Group Full year highlights 2010
EBITA MARGIN REPORTED EBITA 19.9 % REVENUE continuing operations EUR 5.6 billion EUR 1.1 billion CASH CONVERSION 110%
Strong audience shares NET CASH POSITION NET RESULT in major markets EUR 1.5 billion triples to GERMANY, FRANCE, EUR 611 million NETHERLANDS DIVIDEND & BELGIUM EUR 5.00 per share
Best ever result: significant improvement in profitability and margins
2 Agenda
○ Introduction
● BUSINESS REVIEW
○ Financial Review
○ Outlook
The leading European entertainment network Germany – Mediengruppe RTL Deutschland Full year Results 2010
AUDIENCE SHARE 14-49 (in %) KEY FINANCIALS (in EUR million)
1,892 RTL 1,732 34,4 35,0 33,6 33,2 32,9 32,9 ROS ROS 32,2 31,8 29.1% 21.1% 30,4 30,1 29,4 29,3 29,0 29,7 P7S1 29,3 30,3 551 29,0 29,4 366
2002 2003 2004 2005 2006 2007 2008 2009 FY FY 2010 FY 2009 2010 Revenue EBITA
AUDIENCE SHARE 14-49 (in %) SHARE OF NET ADVERTISING MARKET (in %)
+1.2 -0.1 -0.3 -0.2 +0.2 +0.1
18,1 RTL 10,7 11,6
P7S1 6,0 7,7 6,2
RTL Sat.1 Pro7 RTL II Vox Kabel1
Source: GfK, ZAW and RTL Group estimates 4 France – Groupe M6 Full year Results 2010
AUDIENCE SHARE – MAIN CHANNELS NET ADVERTISING MARKET DEVELOPMENT (in %) HOUSEWIVES <50 ALL DAY (in %) FY 2010 vs FY 2009 -0.7 -1.7 -0.8 -0.7 +3.9 Market M6 TF1 37,4 10,7 10,0 28,1 8,4
16,5 12,0 6,0
M6 TF1 France 2 France 3 Others
AUDIENCE SHARE – FAMILY OF CHANNELS KEY FINANCIALS (in EUR million) HOUSEWIVES <50 ALL DAY (in %) 1,459 -0.1 -0.9 -1.0 ROS 1,377 ROS 16.8% 14.2% 33,2 20,4 19,8 245 195
Groupe M6 TF1 Group France Television FY 2010 FY 2009
Revenue EBITA Source: Médiamétrie, housewives under 50, RTL Group estimates Groupe M6 : M6 and W9: TF1 Group : TF1, TMC and NT1: France TV : Fr2, Fr3 and Fr4 5 FremantleMedia Full year Results 2010
KEY FACTS 2010 KEY FINANCIALS (in EUR million)
● Strengthened international presence via acquisitions of Radical Media, Ludia and 1,272 Four One Media 1,183 ● Produced nearly 9,500 hours of TV programming across 54 countries – one of the largest creators of award-winning international programmes ROS ROS o In the US, American Idol was, for the seventh year in a 11.0% 13.1% row, the most watched prime time entertainment series o In the UK, series seven of The X Factor was the highest rated entertainment show with nearly one-third of the population tuning into the final o In Germany, the local version of Got Talent was the most popular yet, with an average audience share of over 37% 140 155 among viewers aged 14 to 49 o In Australia, the final of the second series of Masterchef was the most watched non-sports show ever FY 2010 FY 2009 ● EBITA impacted by contract re-negotiations affecting pricing and volumes Revenue EBITA 6 Netherlands – RTL Nederland Full year Results 2010
TV AUDIENCE SHARE: 20-49, PRIMETIME (in %) NET TV ADVERTISING MARKET DEVELOPMENT (in %)
FY 2010 vs FY 2009
+1.6 +2.2 -2.3 -0.7 -1.0 Market RTL SBS 17,2
10,6 17,7 16,8 11,9 7,3 5,8 3,2
RTL4 NED1 SBS6 RTL5 Net5
Source : RTL Group estimates
TV AUDIENCE SHARE – FAMILY OF CHANNELS KEY FINANCIALS (in EUR million)
+1.3 -3.3 +1.5 429 56 ROS 371 ROS 33,0 28,3 25.6% 53 19.4% 24,0 373 373 318 110 21 72 19 89 53 RTL SBS Ned 1-3 FY 2010 FY 2009 TV revenue & EBITA Radio revenue & EBITA
7 Belgium – RTL Belgium Full year Results 2010
TV AUDIENCE SHARE: SHP 18-54, PRIMETIME (in %)1) NET TV ADVERTISING MARKET DEVELOPMENT (in %) FY 2010 vs FY 2009
+1.1 -0.1 +1.1 -1.2 Market RTL Belgium RTBF
30.0 11.6 11.5 11.7 9.8 6.5 5.0
RTL TVI La Une La Deux Club RTL
TV AUDIENCE SHARE – FAMILY OF CHANNELS KEY FINANCIALS (in EUR million)
-0.6 +1.0 +0.9 -1.0 219 38,3 203 48 ROS ROS 26,9 20.5% 45 17.7% 18,2 171 158 45 16 5,5 36 16 29 20 RTL Belgium Pubcaster AB Group French Channels FY 2010 FY 2009 TV revenue & EBITA Radio revenue & EBITA
Source: Audimetrie 1) CIM MDB South, RTL Group estimates 8 France – RTL Radio Full year Results 2010
AUDIENCE SHARE AVERAGE 2010 – 13+, 5-24H, MON – FRI (in %) RTL STATIONS NRJ GROUP LAGARDÈRE PUBCASTER OTHER
19.3 +0.2 14.8 -0.3p 13.6 -0.5 19.1 -0.1p
+/-0 +0.3 -0.1 +0.1 -0.5 +0.1 +/-0 -0.2 -0.2 -0.1 -0.3 +0.3 -0.1 +0.2 +0.4 -0.1 +1.1 12.4 11.2 9.5 8.1 5.7 5.7 4.4 6.1 4.1 3.0 3.5 4.8 2.8 1.7 2.6 2.9 0.6
RTL Fun RTL2 NRJ Nostalgie Chérie Rire & Eur. 1 Virgin RFM France France France RMC Skyrock MFM Indep. Radio FM Chansons Inter Bleu Info Info x Deviation vs 2009
KEY FACTS 2010 KEY FINANCIALS (in EUR million) 182 ROS 174 ROS ● Audience share of RTL family well ahead of 13.2% 8.6% commercial rivals ● Advertising market estimated to be up 6.3 per cent while RTL’s share decreased slightly to 25.6 per cent 24 15 ● Reported EBITA up 60 per cent to EUR 24 million FY 2010 FY 2009 Revenue EBITA 9 Hungary – RTL Klub Full year Results 2010
AUDIENCE SHARE: 18-49, PRIMETIME (in %) KEY FINANCIALS (in HUF million)
-1.6 +0.5 +0.7 +0.4 28,863 ROS 28,727 ROS 42.7 18.0% 17.4% 29.1 22.6
5.6 5,198 5,006
RTL Klub TV2 M1 Other FY 2010 FY 2009 Revenue EBITA
NET ADVERTISING MARKET DEVELOPMENT (in %) KEY FINANCIALS (in EUR million) FY 2010 vs FY 2009 – IN LOCAL CURRENCY
105 ROS 103 ROS 18.1% 17.5% Market RTL Klub TV2 M1
0.0 0.0 19 18
FY 2010 FY 2009 -3.2 PROFORMA -15.2 Revenue EBITA
Source: RTL Group estimates 10 Greece – Alpha TV Full year Results 2010
AUDIENCE SHARE: 15-44, ALL DAY (in %) NET ADVERTSING MARKET DEVELOPMENT (in %)
+0.1 +0.4 +0.9 -0.7 FY 2010 vs HY 2009
Market Alpha Mega Antenna Star
-13,1 -10,0 -23,8 -27,3 -37,7
Source : RTL Group estimates
AUDIENCE SHARE: PRIMETIME (in %) KEY FINANCIALS (in EUR million)
+0.9 +0.1 +1.7 -1.0
22.0 61 70 15.6 17.8 12.6
Alpha Media Mega Antenna Star -21 -34 FY 2010 FY 2009
Source : AGB Nielsen 20:00-23.59, 15-44 Revenue EBITA 11 Croatia – RTL Televizija Full year Results 2010
AUDIENCE SHARE: 18-49, ALL DAY (in %) KEY FINANCIALS (in EUR million)
-1.7 +1.6 -4.3 -0.7 38 41
24.5 24.4 19.3 12.1 -3 -3
RTL Televizija Nova HTV1 HTV2 FY 2010 FY 2009
Revenue EBITA
NET ADVERTISING MARKET DEVELOPMENT (in %) SHARE OF NET ADVERTISING MARKET (in %) FY 2010 vs FY 2009 FY 2010 FY 2009
Market RTL HTV Nova Nova RTL Nova 41.4 41.2 36.4 RTL 8.8 42.0 Ad market -4.4% -4.4 -6.1 -23.4 17.4 21.6 HTV HTV Source : RTL Group estimates 12 Spain – Grupo Antena 3 Full year Results 2010
GROUP AUDIENCE SHARE: 16-54 - ALL DAY (in %) KEY FINANCIALS 100% VIEW (in EUR million) -0.7 +1.7 +1.2 -1.2 -0.1 808 ROS ROS 704 19.4% 11.5% 16.9 18.4 20.2 10.1 8.7 157 81
Antena 3 Telecinco TVE Cuatro La Sexta FY 2010 FY 2009 Revenue EBITDA
NET ADVERTISING MARKET DEVELOPMENT (in %) GROUP CONTRIBUTION (in EUR million) FY 2010 vs FY 2009
34.7 24 18.5 13 4.0
Market Antena 3 T5 FY 2010 FY 2009
EBITA
Source: RTL Group estimates 13 Agenda
○ Introduction
o Business Review
● FINANCIAL REVIEW
○ Outlook
The leading European entertainment network Review of Results 31 December 2010 (1/2)
Full Year to Full Year to Per cent In EUR million December 2010 December 2009 * change
REVENUE 5,591 5,156 +8.4
REPORTED EBITA 1) 1,111 796 +39.6
Restructuring charges 0 25
Start-up losses 23 32
ADJUSTED EBITA 1) 1,134 853 +32.9
Reported EBITA margin (%) 1) 19.9 15.4 +4.5pp
Adjusted EBITA margin (%) 1) 20.3 16.5 +3.8pp
UNDERLYING REVENUE 5,464 5,142 +6.3
UNDERLYING EBITA 1,102 795 +38.6
* re-presented for discontinued operations 1) continuing operations 15 Review of Results 31 December 2010 (2/2)
Full Year to Full Year to Per cent In EUR million December December change 2010 2009 *
REPORTED EBITA 1,111 796 +39.6
Impairment of goodwill and disposal group and amortisation (63) (89) and impairment of fair values
Loss from sale of subsidiaries, other investments and re- (7) - measurement to fair value of pre-existing interest in acquiree
Net financial income 14 27
Income tax expense (268) (234)
PROFIT FOR THE YEAR – CONTINUING OPERATIONS 787 500 +57.4
LOSS FOR THE YEAR – DISCONTINUED OPERATIONS (57) (202)
PROFIT FOR THE YEAR 730 298 +>100.0
Attributable to:
Minority Interest 119 93
RTL Group shareholders 611 205 * re-presented for discontinued operations 16 Cash Flow Statement as of 31 December 2010
In EUR million Full Year to Full Year to December 2010 December 2009
NET CASH FLOW FROM OPERATING ACTIVITIES 1,130 763
Add: Income tax paid 293 224
Less: Acquisition of assets, net (208) (189)
Equals: Reported free cash flow (FCF) 1,215 798
Acquisition of subsidiaries and JVs, net of cash acquired (30) (14)
Disposal of subsidiaries and JVs, net of cash 112 -
Other financial assets (deposit excluded), net 385 28
Net interest received/(paid) 9 (11)
Acquisition of non-controlling interests (1) (42)
Income tax paid (293) (224)
Dividends paid (721) (631)
CASH GENERATED/(USED) 676 (96)
REPORTED EBITA (CONTINUING AND DISCONTINUED) 1,105 755
EBITA CONVERSION (FCF/EBITA) 110% 106%
17 Agenda
○ Introduction
○ Business Review
○ Financial Review
● OUTLOOK
The leading European entertainment network Outlook
► Strong recovery of television in 2010 ► Reliable guidance for 2011 impossible to give at this stage but optimistic about health of the overall television industry ► Continue to pursue strategic goals regarding optimisation of our core business, investment in our content arm, new channels and new media activities
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