21 April 2010

week 16

AG21 April 201M0

“RTL Group did remarkably well” Chairman Siegfried Luther on RTL Group’s business development, dividend and outlook

Luxembourg France RTL Group publishes Nouvelle Star winning more Annual Report 2009 viewers

Germany United Kingdom / Netherlands Peter Kleim on an unusual FremantleMedia acquires journey with Angela Merkel FourOne Media week 16 the RTL Group intranet

21 April 2010

week 16

Cover: Siegfried Luther, Chairman of the Board of RTL Group

AG21 April 201M0

2 “RTL Group did remarkably well” Chairman Siegfried Luther on RTL Group’s business development, dividend and outlook

Luxembourg France RTL Group publishes Nouvelle Star winning more Annual Report 2009 viewers

Germany United Kingdom / Netherlands Peter Kleim on an unusual FremantleMedia acquires journey with Angela Merkel FourOne Media week 16 the RTL Group intranet

“We expect another cash surplus” On the occasion of this year’s Annual General Meeting, Backstage talked to Siegfried Luther, Chairman of the RTL Group Board of Directors. Luxembourg - 21 April 2010

2009 was a truly challenging year for and debt situation, upcoming investment projects business. How did RTL Group do? or possible acquisitions, and the economic One can safely say – without exaggerating – environment. that RTL Group did remarkably well in a very difficult year: the EBITA margin remained Based on RTL Group’s sound financial posi- high at 14.0 per cent, the major Profit Centres tion, which I just described, and the fact that generated high profits in competitive markets, there is currently no major acquisition target in and the Group’s net result actually exceeded the short term, this year we again proposed a that of 2008 slightly. total dividend of EUR 3.50 per share.

Looking back, one factor was What were the focuses of the crucial to this good performance. Board’s work last year? Can As early as the fourth quarter of you give us details about 2008, the management drew your cooperation with the up graduated action plans for management? 2009 and coordinated them One major focus was of with the Board. This allowed course the company’s the company to respond early response to the economic and flexibly to the declines in crisis. In addition to cost savings, advertising revenue. Going on restructuring and the pressure to significantly save costs while still on advertising prices, the Board also gaining audience shares in virtually all continued to deal very intensively countries is a remarkable feat. with all matters of digitisation. With its fast-growing catch-up TV platforms, RTL Group The dividend for 2009 is again EUR 3.50 – on has already built up a strong presence in par with 2008. Wouldn’t it make sense, given non-linear TV viewing. Digital pay channels such the uncertain development of the markets, as RTL Crime in Germany and RTL Lounge in to keep the money in company instead of the Netherlands are also doing well. Now the paying it out? task at hand is to develop sustainable business It is correct that we are once again able to models and build a reliable second revenue pay out a high dividend to RTL Group’s share- stream alongside advertising sales in Europe as holders − at EUR 3.50 per share, the total well. A strong presence on all digital platforms dividend payout will amount to EUR 541 million. is of great strategic importance for RTL Group, It is also correct, however, that even after this as is the right mix of free, advertising-financed payout − at the end of April − RTL Group will still and paid offerings on its on-demand platforms. have a significant positive net cash position of We are in very open, excellent talks with the around EUR 800 million. In other words: it is by management on this. no means the case that the dividend payout will consume its entire liquidity. Even with conserva- What is your forecast for the current year? tive planning, we expect another considerable After the first three-and-a-half months, I am cash surplus for 2010. cautiously optimistic to improve on last years’s results in 2010. At the same time, however, we But of course we discussed the amount of the realise that we can only predict developments to proposed dividend at great length on the Board, a very limited degree. This has to do partly with including a view to the overall economy. Every the strong fourth quarter of 2009 − no one can year, the management and the Board have to tell what the fourth quarter will look like this year, take into account several factors in preparing its and what surprises the second half holds. dividend proposal to the Shareholders Meeting: the cash flow of the Group, its net cash position 3 week 16 the RTL Group intranet

The Annual Report comes to life As well as moving stories, ratings and figures of the past year, the printed report contains a real innovation − an option to watch TV. Luxembourg - 21 April 2010

For the first time ever, RTL Group’s Annual To be able to access this innovative new feature, Report makes it possible to bring to life certain readers need a computer with Internet access topics from last year using ‘Augmented and a webcam. After bringing up the Reality’ (AR) technology. For dedicated website, you hold up instance, in addition to the the page − clearly labelled with detailed Chief Executive’s an embedded logo − in front Report, there is an interview of the webcam, and the with Gerhard Zeiler about the Annual Report comes to life: business year 2009. Susan check out a window opens up to Boyle’s moving audition RTLGroup.com/ show highlights from on Britain’s Got Talent Report2009 RTL Television’s programming, is not just described in a turning globe illustrates the the report, but can be many relief projects funded watched again, thanks to AR. by the RTL Spendenmarathon The spontaneous exclusive telethon around the world, and concert given by Prince at the story about the Girondins de RTL Radio’s Grand Studio in France is also Bordeaux victory in the 2008/09 season is available as an audiostream. And we’re enhanced with footballs tumbling out not talking about simply watching videos – of the page. in Augmented Reality, the content is literally embedded.

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“The Annual Report should be, first and foremost, The handy pocket-sized ‘At a glance’ an uncluttered compendium of all relevant facts brochure was again produced to accompany and figures. But thanks to the new technology, the Annual Report. It provides a short, this time some of our shows will be part of the uncluttered overview of all the important results presentation. Never before have readers facts and figures pertaining to the business been able to access what makes our business year 2009. RTL Group’s Annual Report and so special in such a tangible way. We hope that the ‘At a glance’ brochure were designed a lot of them will have fun with this little gadget,” in co-operation with the Ringzwei agency says Oliver Herrgesell, Executive Vice President and with input from all profit centres as well Marketing and Corporate Communications, who as the controlling and finance departments at oversees editorial and production of the Annual the Corporate Centre. Oliver Fahlbusch, Vice Report. President Corporate Communications, managed the project. As in previous years, the report presents a detailed, transparent overview of the Group’s The new Annual Report 2009 and/or the results. On 174 pages, it sums up the past brochure may be downloaded from year’s business figures, ratings, awards and RTLGroup.com or ordered in printed form success stories. A clear separation between by completing and submitting the appropriate the ‘storytelling’ financial sections has proven a form. very good idea in the past. So there has been no fundamental change in the report’s award- winning design. In the Directors’ report, the sections of the various profit centres are clearly separated. The CEOs of each unit are also presented with a photo and a short quote on the year 2009.

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A class trip with the chancellor As part of German chancellor Angela Merkel’s delegation, RTL Television’s Peter Kleim experienced a return trip to Germany that was anything but ordinary. Angela Merkel in discussion with Peter Kleim (right) ©dpa Germany - 20 April 2010

“I’ve taken many trips as part of the chancellor’s treated to a city tour at 10:00 – which was then delegation, but I’ve never witnessed the likes of cancelled again at short notice. Instead it was this,” Peter Kleim, Head of RTL’s Berlin studios, “Pack your bags immediately, we’re flying on” – tells Backstage. What happened? After atten- to Rome! From here a convoy would take the ding the nuclear summit in Washington, Angela travellers to Bolzano and on to Berlin the next Merkel visited Arnold Schwarzenegger and the day. But the adventure wasn’t over yet. “Some- Warner Brothers Studios in Hollywood, where where near Montepulciano in Tuscany there was she spoke about opportunities for economic a loud bang – the rear tyre of our bus had blown. collaboration and international efforts to For us it wasn’t so bad, but pieces of our tyre hit counteract piracy in the film industry. “Up until the windscreen of the van behind us, containing that point it was basically business as usual,” government spokesman Ulrich Wilhelm.“ The says Kleim. “But on Thursday evening – after bus pulled over onto the shoulder to change the chancellor had spoken at Stanford – reports tyres. Angela Merkel had her car stop too, began coming in that the north German airports but the security officers urged her to continue were no longer open for landing. Nevertheless driving. After the tyre change, the entire bus was we boarded the plane that was to bring us to switched out in Bologna and the drive to Bolzano Berlin with a stopover at the Grand Forks US Air continued. “It felt a bit like a class trip,” Kleim Force Base in North Dakota.” grins.

Upon the plane’s departure from North The next day, Angela Merkel joined the Dakota, the pilot announced that their original journalists on board the bus. “That’s when this route had been diverted to the south. The new picture was taken,” says Kleim. After a few destination would be Nuremberg, Munich or brief exchanges, the chancellor took her leave, Vienna. But early the next morning, a slightly saying: “It was nice. But really I don’t need this rumpled chancellor came to the journalists in the to happen again anytime soon.“ After the back of the plane to announce yet another change Brenner Pass mountain pass along the border of course: to Lisbon, and on the next day to between Italy and Austria, Merkel drove off, Milan, where the chancellor’s fleet of cars would arriving in Berlin in the afternoon. The journal- be waiting. Merkel took a relaxed view of the ists’ bus arrived later, in the early evening. situation: “Why should we be any better off than “That’s ‘Merkel Tours’ for you,” jokes Kleim. “You the others?” The layover in Lisbon took longer book the US and get Europe as a free extra.” than expected. Instead of leaving for the airport RTL Television and N-TV were on board and in at 6:30 as planned, the delegation would be the thick of the action the entire time.

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“Awesome” showdown, sensational ratings The latest season of Deutschland sucht den Superstar did not only achieve great ratings, but was also popular on the web, mobile and even Twitter. Mehrzad Marashi, winner of Deutschland sucht den Superstar Germany - 19 April 2010

“This is the most awesome finale ever,” Dieter video views of highlights from the various shows. Bohlen said on the show Saturday evening. As On Clipfish.de, the highlights generated 34 mil- many as 9.32 million viewers tuned in for lion views (2009: 18.6 million). The complete the final episode of the popular show series episodes and shows were viewed 7.7 million on RTL Television on 17 April. A sensational times on RTLNow.de. 39.2 per cent of 14- to 49-year-olds and an average 7.58 million viewers overall watched the For the first time, RTL Television used Twitter finale, giving the channel 24.4 per cent ofthe to communicate with fans directly. Already in total viewer market in Germany. The decision January a study by the media services provider show was watched by 8.05 million at its peak, X-Ray in cooperation with Scholz & Friends and with an average 7.07 million viewers over the Lowe Deutschland had stated that Deutschland age of 3. The show scored 38.6 per cent of the sucht den Superstar was the most popular Ger- overall market, and a whopping 50.6 per cent man TV show on Twitter. At the end, the official among 14- to 49-year-olds. Thus, RTL Television account registered nearly 6000 Followers. The scored the best ratings since season one. result of this first test: Despite getting in touch with the fans, it is a helpful tool to rank, comment Entertainment Director Tom Sänger says: and deny dozens of rumours officially. “Our goal is to keep Deutschland sucht den Superstar developing as the lead brand for Mobile use in particular has increased steeply shows on German television. In this seventh this year: in 2009, just 170,000 of the views season, everything worked out perfectly: were generated by smartphones. This year the excellent musical performances, polarising number skyrocketed to 3.5 million – most of them candidates, a flawless dramatic production, via the new app launched by RTL Interactive at and an edge-of-your-seat finale. The viewers the end of January. thanked us by giving us record ratings.”

The Single Don’t Believe by winner Mehrzad Marashi has set a new download record imme- diately: on Sunday, the song generated the high- est first-day sales ever seen in Germany. Thus, Mehrzad Marashihow bested the previous first- day sales record holder, Lena Meyer-Landrut’s Grand Prix song for Germany, Satellite.

In addition to the gratifying TV viewer ratings, season seven of the talent show was popular on the Internet as well. Users of various platforms viewed some 85 million videos tying in to the show – that’s more than twice as many video views as last year (40 million). RTL.de alone counted around 40 million (2009: 16.5 million) The winning song Don’t believe set a new download record 7 week 16 the RTL Group intranet

Looking forward RTL Creation is building anticipation for the Football World Cup with an emotional, humorous campaign under the heading: “RTL gibt dir den Kick!” Germany - 20 April 2010

RTL already has compelling content lined up for the FIFA World Cup 2010 in South Africa, with the broadcast of nine matches and a strong “back four” consisting of Günther Jauch, Jürgen Klopp, Florian König and Jürgen Klinsmann. The on-air campaign in three stages plays to these strengths. Watch the spot on Phase one consists of print ads in major Backstage popular magazines and TV guides featuring a picture of the four presenters. A big World Cup special will run on RTL.de, with live streams of the matches broadcast by RTL Television, a live ticker, backgrounders, analyses with Getting ready for the world cup Jürgen Klopp and many other features produced by RTL Interactive.

Initial TV spots have been on air since 20 March to heighten fans’ anticipation of the World Cup. Since 17 April, they have been joined by a hu- morous trailer featuring the World Cup modera- tors Günther Jauch, Jürgen Klopp, Jürgen Klins- mann and Florian König preparing a football pitch: Jauch draws the lines around the pitch, Klopp sets up the corner flags, König mows the lawn, all under the expert instruction of Jürgen Klinsmann.

In phase three, stars and celebrities including anchorman Peter Kloeppel, chef/restaurant advi- Jürgen Klopp, Günther Jauch, Jürgen Klinsmann and sor Christian Rach and boxing brothers Wladimir Florian König (from left to right) at the press conference in March and Vitali Klitschko will present the “RTL gibt dir den Kick!” (RTL gets you kickin’!) claim in short spots.

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300,000 more viewers in one year M6’s first live show of Nouvelle Star made the channel number one among viewers under 50. The studio of Nouvelle Star at Pavillon Baltard France - 16 April 2010

Broadcast on 14 April night at 20:40 and presented by Virginie Guilhaume, the first live show of Season 8, from the Pavillon Baltard, gathered 3.8 million viewers for an 18.2 per cent share of the audience age 4 and up. With that, the show had 300,000 more viewers Visit the official website Watch the spot on compared to the show broadcast Nouvellestar.fr Backstage live in 2009. On Wednesday night, M6 was number one among view- ers under 50, with an audience share of 24.9 per cent in this target market. Fifteen contestants were in the competition, and five were eliminated in the first evening of this grand musical event.

The following magazine Nouvelle Star, ça continue was also a hit with viewers. Presented by Estelle Denis with Jérôme Anthony and Camille Combal, the show gathered 1 million viewers for a 12.4 per cent share of the audience age 4 and up. This show also gained 200,000 more viewers as compared to the average number of viewers in this time slot in 2010.

Luce is a contestant whose flamboyant wardrobe matches The jolly trio of Camille Combal, Estelle Denis and her fabulous voice. Jérôme Anthony presents La Nouvelle Star, ça continue

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FremantleMedia acquires FourOne Media FremantleMedia announced the strategic acquisition of Netherlands based independent production company FourOne Media. United Kingdom - 19 April 2010

The deal sees FremantleMedia take a 100 per The acquisition of FourOne Media is another cent stake in FourOne Media, adding scale example of FremantleMedia’s continued invest- to the company’s Dutch production arm Blue ment in European production. FourOne Media Circle and expanding its catalogue offering to will become a part of FremantleMedia’s global incorporate drama, fiction and sitcoms. network, benefiting from the experience and expertise of rolling out unique productions and Simon Spalding, Regional CEO, Europe creating inspiring entertainment for audiences. and Asia-Pacific says: “FourOne Media has developed a unique position in Holland, carving out strong relationships with networks and producing content with a wide audience appeal. FourOne Media has built a formidable drama and fiction offering, and we hope to further build on the company’s outstanding track-record in the industry,”

Under the leadership of its founder Willem Zijlstra, FourOne Media has built key relation- ships with several Dutch networks including SBS, Public KRO, Public NCRV and MTV, delivering popular drama and sitcoms including S1ngle, which airs daily on Net5!, and Scoots and Helmets for MTV.

Willem Zijlstra will take on the role as Managing Director for both ourOne and Blue Circle. Willem will report to Monica Galer, Head of Northern and Southern Europe, FremantleMedia. Monica Galer says, “FremantleMedia’s acquisition of FourOne enhances Blue Circle’s position in the market by moving us into new areas of production as we pick-up a fantastic catalogue of fiction and drama. I’m delighted to welcome Willem and the rest of the FourOne Media team to the FremantleMedia family.”

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A hit on Facebook Family Feud for Facebook has become one of the fastest-growing games on Facebook with over one million unique players in fewer than 30 days. With Family Feud for Facebook, users can play with their friends United Kingdom - 16 April 2010

Following the original TV show which is Family Feud is produced by FremantleMedia produced by FremantleMedia North America North America and distributed in the US by and will launch its 12th season in national Debmar-Mercury. Family Feud on Facebook syndication with new host Steve Harvey the was produced by iWin and is accessible to any week of 13 September, the Facebook version Facebook account holder here. Backstage Tech- of Family Feud encourages players to give the nologies will use their expertise in monetizing most popular responses to survey questions social games to develop a framework for players previously posed to 100 people. Players can to collect and trade Family Feud-themed virtual then earn huge bonuses if their Facebook friends goods online. help them reach a certain level in the famed “Fast Money” round. There are over eleven thousand survey questions in the game, with new content added every week.

“iWin has been a fantastic long-standing partner of FremantleMedia Enterprises, and we are excited for them to bring one of our most engaging brands to this new platform,” added Olivier Delfosse, Director of Interactive for FremantleMedia Enterprises. “We believe that as an inherently social game, Family Feud’s participatory gameplay should be a hit on Facebook.”

“Our aim when creating the game was to em- brace the social element of Facebook and combine it with the long-standing principles of the show,” explained David Fox, Vice President of Technology at iWin, a leading publisher and developer of online casual games for the mass market. “Players will be able to interact with oth- ers, share amusing survey questions and barter for rare prizes – and what better platform to do this on than Facebook.”

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More exciting than ever RTL 5 airs new episodes of The Phone, a game show with Eddy Zoey. Netherlands - 16 April 2010

Out of the blue, an abandoned phone some- where rings and turns the lives of two unsuspect- ing people upside down for a day. As soon as they take the call, they become candidates on The Phone. Now, they have to complete various tasks in order to receive the four keys that will open the safe containing the EUR 25,000 prize.

Starting 18 April at 21:35, RTL 5 has been airing new episodes of the game show. A new feature this season is that the candidates were selected in advance. This gives the makers of The Phone insight into their personalities and fears – ensur- ing no one is spared. 10.5 per cent of viewers aged 18 to 34 tuned in for the first episode.

The Phone is already on air in more than 50 countries and has won a Golden Rose as well as an Emmy Award.

Eddy Zoey with The Phone

12 “RTL Solidarité Nuage” Hundreds of thousands of people have been finding themselves in precarious circumstances following the halt of air traffic over Europe. With “RTL Solidarité Nuage”, a dedicated space on RTL.fr, people looking for help and those offering The pictureassistance was taken can bycorrespond. a “Témoin RTL”, an eyewitness who posted his picture on RTL.fr and sold it to RTL Radio France. week 16 the RTL Group intranet

RTL Radio France is the uncontested leader First in cumulative audience, audience share and listening duration, seven days out of seven: France’s number one radio station is still at the top. France - 16 April 2010

A Mega Jump for a Mega anniversary To celebrate the fifth anniversary of M6 Mobile by Orange, inline skating world champion Taig Khris is causing a stir and planning one of the biggest challenges in his career: to jump off the first floor of the Eiffel Tower. France - 19 April 2010

Commemoration for a long-denied massacre Paris Première broadcast the television premiere of the film Katyn, which tells the story of the massacre of 22,000 Poles by the Soviet secret police in the spring of 1940 in a Russian forest near Smolensk. France - 19 April 2010

Over 100 case studies Just in time for TV Effectiveness Day on 22 April in Frankfurt am Main, the number of studies available from the TV genre website Wirkstoff.TV passes 100. Germany - 20 April 2010

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Expanded Business coverage N-TV is expanding its business coverage by adding two new features : Walters Woche (Walter’s Week) featuring Prof. Norbert Walter starts 3 May, and Markus Koch’s Mal zwischendurch (In between) already made its debut on 20 April. Germany - 20 April 2010

Returning for the good cause Idol Gives Back has raised and donated more than USD 140 million over the past two editions. After a one year absence, Idol Gives Back returns to the screen on 21 April. Viewers will once again be able to make donations during and following the show. United States - 21 April 2010

Off to a great start Season Four of Britain’s Got Talent has begun with a bang: as many as 12.17 million viewers watched the first episode. An average 10.63 million viewers tuned in from 20:00 on Saturday for an impressive audience share of 44 per cent. United Kingdom - 21 April 2010

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