Investor Presentation
September / October 2011 TF1 GROUP
Pay TV Advertising Diversification Audiovisual Broadcasting Free Channels Production (()France) adggyency & Internet rights international 2011: A RECORD FOR TV CONSUMPTION
Women<50: 3h52 12’ min more vs 2010 / +5% 3h52 3h44 4 +: 3h46 3h40 3h40 16’min more vs 2010 / +8% 3h34 3h32 3h46 3h28 3h31 3h24 3h24 3h13 3h19 3h27 3h24 3h26 3h29 3h23 3h30 3h11 3h22 3h23 3h02 3h18 3h16 3h03 3h08 3h09 3h14 3h00 3h00 2h59 2h57 2h53 3h07 3h03 2h59 2h52 2h47 2h51 2h46 2h46 2h39 2h42
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Médiamétrie/Médiamat (TV Consumption / January-July) TF1, A EUROPEAN LEADER
Audience share (in%) of leading European channels Gap between each leader on their own national territories for H1 2011 (*) and its challenger
Leader TF1 23,8 8.6 pts Challenger France 2 15,2
Leader BBC 1 20,9 5.4 pts Challenger ITV1 15,5
Leader RTL 14,2 1.4 pts Challenger Das Erste 12,8
Leader TVE1 14,9 0.8 pts Challenger Tele 5 14,1
Leader Rai 1 19,1 1.5 pts Challenger Canale 5 17,6
Source: Médiamétrie – 1st half 2011. 4 + (France) / Eurodata TV – BARB - Kanter Media (UK) / Eurodata TV – AGB – GFK (Germany) / Kantar Media (Spain) / Eurodata TV – Auditel – AGB Nielsen (Italy). FIRST-HALF 2011: UNRIVALLED TELEVISION OFFER
50 best audiences All channels combined
23. 8% 26. 8% audience share audience share Individuals Women<50 pdm
Very solid leader
6.3 50 / 16 / 2 million viewers 50 prime time with over 8 million viewers in prime time 16 with over 9 million 87% 2 with over 10 million of top evenings with Individuals
Source: Médiamétrie – Médiamat 5 TF1, 1ST FRENCH TV CHANNEL (ON INDIVIDUALS – 4 YEARS AND +)
Audience share 4 years and + (in %) Jan.–Aug. 2011
Jan. - Aug. 2010 Jan. - Aug. 2011
23.6 22.9 24.6
19.2 15.2 16.4 11.7 10. 5 9.9 12.3 10.8 10.4
3.0
2.9
TF1 F2 F3 C+ M6Whole Ch. Pay. paying Whole Ch. TNT DTT channels channels
SOURCE : Médiamétrie – Médiamat – Jan.–Aug. 2011 6 TF1, 1ST FRENCH TV CHANNEL (ON ADVERTISING TARGET)
Audience share on Women below 50 (in %) Jan.–Aug. 2011
26.8 Jan. - Aug. 2010 Jan. - Aug. 2011 28.1 23.9
17.1 20.6
16.4 11.1 11.2 12.2 11.8
5.2 6.2 2.7 2.5
TF1 F2 F3 C+ M6Whole Ch. Pay. paying Whole Ch. TNT DTT channels channels
SOURCE : Médiamétrie – Médiamat – Jan.–Aug. 2011 7 TF1, A UNIQUE POSITION ON THE 7pm-1am STRATEGIC SLOTS
Audience Share (%) Jan-Aug 2011
4 years and + Women<50 pdm
7pm-1am +2. 2p ts +3. 1p ts vs whole day
29.9% 25.8% 26.8% 23.6%
Whole Day 7pm-1am Whole Day 7pm-1am
TF1 +8.4pts +12.1pts +9.7pts +10.2pts vs challenger
Source: Médiamétrie/Médiamat 8 8 MONTHS 2011: TF1 SETS RECORDS IN ALL CATEGORIES
Les Enfoirés: 12.5 m Doc Martin: 9.1 m New record for the show Dr House: 9.5 m (and 8.9 m for Bienvenue aux Edelweiss) 6 episodes with over 9 m viewers
De l’autre côté du lit: 9.4 m 8 o’clock news: 10.4 m France / Brazil: 8.0 m Best audience in each programme category 1 o’clock news: 8.5 m (and 7.6 m for France / Croatia) 9 Source: Médiamétrie – Médiamat Most-watched news programmes in Europe RUGBY WORLD CUP: TF1 GROUP ROLLS OUT 360 ° MULTI-SCREEN SYSTEM
TV
=> 20 main matches live on TF1 => Special magazines on TF1, Eurosport and LCI => All matches re-broadcast on Eurosport IPTV
=> MyTF1, special World Cup portal for partner boxes: catch-up
TABLET
=> All the latest news on the World Cup in real-time: results, analysis, catch-up, etc. WEB
=> Special World Cup site: simulcast, catch- up, video, analysis, community, etc.
MOBILE
=> Matches and mags live on TF1 and Eurosport apps
10 AN INVESTMENT IN DTT TO STRENGTHEN ON OUR CORE BUSINESS
National audience share (in %) Jan. – Aug. 2011
3.3 3.5
2.4 2.4 212.1 1.8 1.9 4 years and + 1.4 0.9 1.1
Direct 8 W9 TMC NT1 NRJ12 F4 BFM TV I.Télé Direct Star Gulli
4.2 3.9
2.6 Women < 50 2.4 2.3 2.1 2.0
1.1 006.6 nd
Direct 8 W9 TMC NT1 NRJ12 F4 BFM TV I.Télé Direct Star Gulli
SOURCE : Médiamétrie – Médiamat – Jan. – Aug.2011 11 8m 2011: TMC AND NT1, AN UNRIVALLED TELEVISION OFFER
Audience share (%)
4 yrs + Women <50 pdm
Change vs 8m 2010 +9% +11%
3.5 3.9 3.2 3.5
8m 2010 8m 2011 8m 2010 8m 2011
Change vs 8m 2010 +20% +64%
2.3 181.8 1.5 1.4
8m 2010 8m 2011 8m 2010 8m 2011
Source: Médiamétrie - Médiamat 12 AT THE END OF AUGUST 2011: TF1 GROUP AUDIENCES STABLE YEAR-ON-YEAR
4 yrs + Women <50 pdm
1.4 2.3 353.5 1.5 1.8 3.9 3.2 3.5
28.1 26.8 24.6 23.6
29. 3% 28. 9% 33. 0% 33. 0%
8m 2010 8m 2011 8m 2010 8m 2011
Source: Médiamétrie – Médiamat 13 TV: NO.1 MEDIA IN FRANCE VARIATION IN AD REVENUE GROWTH FROM ONE MEDIA TO NEXT
Trend in GROSS plurimedia investments (€m) – January-June 2011
+12.3% +3.6% PLURIMEDIA +6.5% to €13,225m
4,290 +5.4% 3,766 +5.7% -2.6% Television in details: 1,993 1,691 -HistoricalTV: +3.6% 1,349 +59.6% -DTT: +36.4% 137 => Freeview TV: +11.7% TV PRESS RADIO INTERNET OUTDOOR CINEMA - Cab/Sat: +17.4% GROSS MS 32.4% 28.5% 15.1% 12.8% 10.2% 1.0% +1.6 pts -0.8 pts-0.1 pts -0.1 pts -0.9 pts +0.3 pts
Source: Kantar média – exTV sponsorship – ex self-promotion and subscriptions – Jan-June 2011 vs 2010 – Source Medial 14 TV STILL LARGELY DRIVEN BY DTT
Trend in GROSS TV investments (€m) – H1 2011 TOTAL TV: +12. 3% to €4, 290m
+3.6% TOTAL FREE-TO-VIEW: Trend +11. 7% to €3, 865m +2.1%
+0.2% 2,697 +36.4% +11.2% +17.4% +7.3% 1,169 425
National TV TNT Cab Sat
Source: Kantar média – ex TV sponsorship– January to 26 June 2011 vs 2010 15 TF1 GROUP PAY-TO-VIEW CHANNELS IN ROBUST HEALTH
No.1 channel on cable and satellite with 4 yrs +and women < 50 pdm +29% audience with 4 yrs +year on year*
Best audience with high SPC Individuals since 2004 +59%*% audience with 4 yrs +year on year* +75% audience with high SPC Individuals
No.3 channel on cable and satellite with 4 yrs + +25% audience with 4 yrs +year on year* and +33% with men 15-49
+82% audience with 4 yrs +year on year* and +148% with 15-34 year olds
Stable with 4 yrs +year on year and +113% audience with high SPC Individuals
+9% audience with 4 yrs +year on year*
+17% audience with 4 yrs +year on year*
+16% audience with 4 yrs +year on year* +30% audience with women < 50 pdm
+22 % audience with 4 yrs +year on year*
* Source: Médiamétrie-Médiamat’Thématik V21 vs V19 / Extended competition 16 ENHANCED EUROSPORT OFFER NO.1 SPORTS MULTIMEDIA PLATFORM IN EUROPE
EUROSPORT
125 M house ho lds EUROSPORT.COM 59 countries EUROSPORT 2 20 languages No.1 sports web platform in Europe 52 M households 15 M UVs a month 17 langgguages 11 langgguages 46 countries MOBILE APP EUROSPORT HD 10 languages HD for Eurosport and Eurosport 2 EUROSPORT PLAYER
Web TV: live and VOD EUROSPORT Mobile app available ASIA-PACIFIC in 5 countries
4.5 M households 2 languages EUROSPORT EVENTS 18 countries EUROSPORT NEWS Expertise in organising, Comprehensive sports news managing and promoting international sports events
BtthBoost the appeal Develop of Eurosport Win new markets diversification channels products
17 RECOVERY IN DIVERSIFICATION ACTIVITIES CONFIRMED
• Games: FDJ card and 1000 Bornes app • Music: Les Prêtres – 2nd album: 6 weeks at no.1 TF1 Entreprises • Shows: Mozart, L’opéra Rock:>1.3 million spectators • Licences: signature of Franklin agent contract
•sur Free lhdlaunched on Free • Strong increase in video advertising e-TF1 • iPhone / iPad app: > 1.3 million downloads • WAT No.1 social video media for young people with 5.9 M UVs and profitability achieved
• 6 films with more than one million admissions Production
• 200 brands represented on the Place des Tendances site and strong growth in e-commerce Téléshopping
• Increase in sales volume thanks to performance of releases in end-2010 Vidéo • Strong growth in VOD (+11% in value and +7% in volume)
TF1 • High comparison base Droits Audiovisuels • Restated revenue between Catalogue activity and TMC and NT1
18 FINANCIAL INFORMATION
19 ADVERTISING REVENUE EVOLUTION
€m H1 2011 H1 2010 Var. €m Var. (%)
Consolidated revenue 1,277.6 1,284.6 -7.0 -0.5%
Advertising revenue TF1 channel 757.8 764.6 -668.8 -009%.9%
Diversification revenue 519.8 520.0 -0.2 =
Detail of the total advertising revenue: TF1 Channel 757.8 764.6 -6.8 -0.9%
Themati cchlhannels iFin France 97. 5 47. 2 +50. 3 x212.1
Internet France 12.5 9.2 +3.3 +35.9%
EtIttilEurosport International 31. 5 38. 3 -686.8 -17. 8%
Radios 5.9 5.6 +0.3 +5.4%
Total advertising revenue 905.2 864.9 +40.3 +4.7%
20 TF1 CORE CHANNEL PROGRAMMING COSTS EVOLUTION
€m H1 2011 H1 2010 Var. €m Var. (%)
Total programming costs 423.6 482.6 -59.0 -12.2%
One-off sporting events - 60.1 -60.1 -
Pogramming costs excl. one-off sporting events 423.6 422.5 +1.1 +0.3%
Entertainment 110.1 119.1 -9.0 -7.6%
TV dramas / TV movies / Series / Theatre 156.0 139.8 +16.2 +11.6%
Sports (excl. one-off sporting events) 51.7 54.0 -2.3 -4.3%
News 56.4 54.4 +2.0 +3.7%
Movies 40.7 45.8 -5.1 -11.1%
Youth 8.7 9.4 -0.7 -7.4%
21 CONTROLLED PROGRAMMING COSTS
in € million Trend in programming costs with one-off sporting events, from H1 2005 to 2011
600 546.5 514.1 500 468.7 482.6 451.7 455.3 423.6 400
300
200
100
0 H1 2005 H1 2006 H1 2007 H1 2008 H1 2009 H1 2010 H1 2011
22 CONSOLIDATED INCOME STATEMENT 1/2
€m H1 2011 H1 2010 Var. €m Var. (%)
Consolidated revenue 1,277.6 1,284.6 -7.0 -0.5%
Total programming costs ((236)423.6) ((826)482.6) +5990.0 -12.2%
Total other charges (610.6) (665.5) +54.9 -8.2%
Depreciation and amortisation, provisions (56.9) (32.1) -24.8 +77.3% and impairment (net)
Current operating profit 186.5 104.4 +82.1 +78.6% Operating margin 14.6% 8.1% +6.5 pts
Non-current operating income - - - -
Operating profit 186.5 104.4 +82.1 +78.6%
23 CONSOLIDATED BUSINESS MODEL
Quarterly variations in consolidated revenue and current operating profit (€M) since 2009
+33
+50 +50 +6 2 +14 +5 9 +5 6 +6 0 +4 3 +3 7 +3 7 +2 5 +2 2 +1 7 +1 8 +1 1 +1 4 +5 +8 (13) (23) YOY Change in revenue (33)
YOY Change in current operating profit
(107)(54) One-off sporting events (115)(111)
Q1T1 2009 Q2T2 2009 Q3T3 2009 Q4T4 2009 Q1T1 2010 Q2T2 2010 Q3T3 2010 Q4T4 2010 Q1T1 2011 Q2T2 2011
24 OPTIMISED MANAGEMENT FOR IMPROVED PROFITABILITY
Trend in TF1 Group current operating margin 20% 18.8%
18%
16%
14% 13.2%
12% 9.3% 10% 8.3% 8.8% 8% 7.3% 10.0%
6%
4% 2% 3.8% 0% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 -2%
-4% -2.2% -1.0%
25 CONSOLIDATED INCOME STATEMENT 2/2
€m H1 2011 H1 2010 Var. €m Var. (%)
Operating profit 186.5 104.4 +82.1 +78.6%
Cost of net debt 0.2 (10.4) +10.6 ns
Other financial income and expenses (1. 0) +3. 4 -444.4 ns
Income tax expense (53.1) (30.3) -22.8 +75.2%
Share of profits / (losses) of associates (11.6) 6.8 -18.4 ns
Net profit 121.0 73.9 +47.1 +63.7%
Net profit attributable to the Group 118. 6 74. 2 +44. 4 +59. 8% Attributable to minority interests 2.4 (0.3) +2.7 ns
26 A HEALTHY BALANCE SHEET
Net debt (-) / Net cash (+) (€m) Confirmed bilateral credit facilities (€m)
100 -120.1 10.9 0
-100
-200 €975m -300
-400 -571.7 -500 -705.8
-600 -820.3 30/06/2011 -700
-800
-900
S&P upgraded the TF1 Group’s credit rating from BBB / positive outlook to BBB +/ stable outlook 27 OUTLOOK
2010 2011 e
TF1 Group consolidated revenue €2,622m =
Hypothesis of consolidated revenue expected to remain stable in 2011
28 APPENDIXES
29 TV: A MASS MEDIA
Daily coverage of French population
, ,
,, ,, ,, ,, ,, ,, , , ,, ,,
aged 4 years Aged 13 years Weekly Regional National aged 15 years and + and + newspaper Daily daily and + newspaper newspaper
Source: TV Médiamat jan-march 2011 - Radio 126000 - Press : source AEPM 09/10 and EPIQ 2010 except Ouest France EPIQ cumul 2008-2010, Internet : Panel NNR Médiamétrie – feb. 2011 – daily visitors 30 CONSISTENT DIVERSIFICATION IN TELEVISION AND FREE CONTENT
Television
CREATION LICENCES CATALOGUE ? SHOWS PRODUCTION VOD BOARD GAMES SVOD ) E-COMMERCE MAIL ORDER
Free content
31 GROUP GROWTH LEVERS
1 INNOVATIVE PLURIMEDIA ADVERTISING ENTITY TF1 Publicité: 360 ° advertising entity with a new approach to customers Innovative offers
2 DEVELOPMENT OPPORTUNITIES LINKED TO DIGITAL PLATFORMS Digital strategy to create value A 360° strategy generating new B2C revenus Development of synergies between Group channels
3 OPTIMISING THE BUSINESS MODEL Changes in regulatory framework Performance management
ÖAn information and entertainment group that is building its future changing from: • one channel to channels with synergies • a mass media to multiple targeted platforms • a leading programme to diversified content and services
32 AUDIOVISUAL FRENCH FRAMEWORK
WOMAN 70%
65%
M6 TF1 60% F2 F3 NIORS OUNG
TMC EE YY
55% S 20 25 30 35 40NRJ12 45 50F5 55 60 65 W9 Arte NT1 50% Direct8 Gulli F4 Total industry average* 45% 49 yrs old / 55% women
C+ 40%
Bubble size linked to audience share for 4 yrs + January-June 2011 35%
MEN
Sources: Médiamétrie / Mediamat and Files Mediaplanning 33 EVOLUTION OF THE ADVERTISING SECTORS
Evol Jan-Aug 2011 vs. Jan-Aug 2010
FOOD 21.7% -4.4%
COSMETICS 16.7% +7.3%
AUTO-TRANSPORT 9.6% +2.9%
FINANCIAL SERVICES 7.2% -2.8 %
RETAIL 6.8% +7.7%
HOUSE CLEANING 5.5% -15. 4%
TELECOMMUNICATIONS 4.5% -14.0%
PUBLISHING 38%3.8% -17.3% Ad gross revenue : -0.4% HEALTH 3.7% -4.5% (Jan-Aug 2011 vs. Jan-Aug 2010)
TRAVEL - TOURISM 3.7% +22.5%
Source: Kantar Media Jan-Aug. 2011 vs. Jan-Aug. 2010 34 REVENUE CONTRIBUTIONS BY SEGMENT
€m H1 2011 H1 2010 Var. €m Var. %
Broadcasting France 1,052.2 1,041.9 +10.3 +1.0% TF1 SA 760.5 769.5 -9.0 -1.2% Téléshopping 54.1 58.3 -4.2 -7.2% Thematic channels in France 160.1 107.9 +52.2 +48.4% TF1 Entreprises 16.6 15.8 +0.8 +5.1% In-house production companies 11.6 10.1 +1.5 +14.9% e-TF1 38.6 37.3 +1.3 +3.5% Others 10.7 43.0 -32.3 -75.1% Audiovisual Rights 50.1 60.0 -9.9 -16.5% Catalogue 11.7 24.4 -12.7 -52.0% TF1 Vidéo 38.4 35.6 +2.8 +7.9% Broadcasting International 173.8 181.2 -7.4 -4.1% Eurosport International 173.8 181.2 -7.4 -4.1% Other Activities 1.5 1.5 +0.0 na SPS 1.5 - +1.5 na 1001 Listes - 1.5 -1.5 na
Total consolidated revenue 1,277.6 1,284.6 -7.0 -0.5% 35 CURRENT OPERATING PROFIT CONTRIBUTIONS BY SEGMENT
€m H1 2011 H1 2010 Var. €m Var. %
Broadcasting France 181.0 84.6 +96.4 x2.1 TF1 SA 131.9 56.9 +75.0 x2.3 Téléshopping 1.0 4.1 -3.1 -75.6% Thematic channels in France 27.9 11.8 +16.1 x2.4 TF1 Entreprises 2.6 0.3 +2.3 x8.7 In-house production companies 2.0 - 0.1 +2.1 na e-TF1 3.1 0.1 +3.0 x31.0 Others 12.5 11.5 +1.0 +8.7% Audiovisual Rights -11.1 -5.6 -5.5 -98.2% Catalogue -10.1 0.7 -10.8 na TF1 Vidéo -1.0 - 6.3 +5.3 +84.1% Broadcasting International 27.6 26.7 +0.9 +3.4% Eurosport International 27.6 26.7 +0.9 +3.4% Other Activities - 11.0 -1.3 -9.7 x8.5 SPS - 11.0 0.1 -11.1 na 1001 Listes - -141.4 +141.4 na
Total current operating profit 186.5 104.4 +82.1 +78.6% 36 CONSOLIDATED BALANCE SHEET
ASSETS (€m) 30/06/11 31/12/10 Var. €m
Total non-current assets 1,362.0 1,414.7 -52.7
TtlTotal current assets 2, 031. 7 1, 910. 0 +121.7
Total assets 3,393.7 3,324.7 +69.0
SHAREHOLDERS’ EQUITY AND LIAB. (€m) 30/06/11 31/12/10 Var. €m
Shareholders’ equity 1, 540. 9 1, 547. 6 -676.7 (attributable to the Group) 1,529.8 1,538.9 -9.1
Non-current liabilities 66.3 71.5 -5.2
Curent liabilities 1,786.5 1,705.6 +80.9
Total shareholders’ eqqyuity and liabilities 3,393.7 3,324.7 +69.0
Net cash (+) / Net debt (-) +10.9 +16.8 -5.9
37 CONSOLIDATED CASH FLOW STATEMENT
€m 30/06/11 30/06/10 Var. €m
Operating cash flow 219.7 132.5 +87.2
Income taxes (paid)/reimbursed (31.7) 3.0 -34.7
Change in operating working capital needs (56.2) (3.2) -53.0
Net cash generated by/(used in) operating activities 131.8 132.3 -0.5
Net cash generated by/(used in) investing activities (14.7) (222.7) +208.0
Net cash generated by/(used in) financing activities (125.8) (61.0) -64.8
Change in cash position (8.7) (151.4) +142.7
Cash position at beginning of period 37.0 566.8 -529.8 Cash position at end of period 28.3 415.4 -387.1
38 CONTACTS
Philippe DENERY - CFO IR department : pdenery@tf1.fr : 33-1 41 41 27 32 : 33-1 41 41 29 10 Christine BELLIN - Head of Investor Relations : [email protected] : [email protected] TF1 Deborah ZUB - IR 1 quai du Point du Jour : [email protected] 92 656 Boulogne-Billancourt Cedex François-Xavier GIMONNET - IR France : fxgg@[email protected] http://www.groupe-tf1.fr/
Besma GUIZANI - Coordinator : [email protected]
39