March 24th, 2020
CONFIRMED GROWTH TRAJECTORY IN 2019 FY19 ResultsH2 2019 ROADSHOWS Remplacer par Power Players The CrimsonThe Crimson Rivers Rivers Les RivièresLes Rivières Pourpres Pourpres (8 x 52’) (8 x 52’)
Delivering our objectives for 2019
2 | Mediawan FY 2019 Results BOOMING PRODUCTION VOLUMES
Comforted leadership The group has significantly increased production volumes, benefiting in France and Italy from strong demand from both OTT platforms and traditional broadcasters
+32% delivered hours (Mediawan Originals) Diversification towards documentaries and non-scripted Continued increase in documentaries 137 h production ( Apocalypse, Demain est à nous, Griezmann…) Acquisition of Black Dynamite 104 h Launch in premium non-scripted programs (Il Supplente)
Ecran total, September 2019
2018 2019
Mediawan - FY 2019 results 3 ACCLAIMED PROGRAMS
2019 was a year of major audience and critical successes for the group productions
Streaming record Record episode on Rai I with Silver Bear for Best Screenplay Best female newcomer at 2020 César Awards 3.5 million orders on myCANAL and 9.3 million people and 39% of at the Berlinale 2019 Best Film Award at the Rome International Film CANAL+ on demand in two weeks viewers in March 2020 Festival - Alice nella Città Selection
Un Homme Abimé
4th series in the ranking of the most watched 6th series in the ranking of the most watched Best documentary award at Best director award at 2020 Festival French prime time series in 2019 French prime time series in 2019 the COLCOA festival (French de Luchon 2020 and Best Actor at Avg 6.03m viewers (30.1% share) on TF1 Avg 5.74m viewers (24.7% share) on TF1 film festival in Hollywood) 2019 Festival de La Rochelle
Mediawan - FY 2019 results 4 DEVELOPMENT OF BLUE-CHIP PROPERTIES
The group capitalizes on strong IPs with global potential in the long term
Global IP Adapted on all formats Unique L&M potential Strong digital presence
#1 kids show in Europe TV series (5 seasons) More than 300 licensees 14 billion views on Youtube #1 girl show in US Feature film (currently in Premium partnerships 88 million app downloads production) Available in more than $500m retail sales 3.2 million subs on Instagram 120 countries New formats in development estimated since 2015
Mediawan - FY 2019 results 5 CLIENT DIVERSIFICATION WIDENING OUR CLIENT BASE WITH A STRONG CONTRIBUTION FROM OTT PLATFORMS
Continued distribution deals to fuel platforms libraries
Black spot
x 2.5 revenues with platforms
Call my agent Power Players
Accelerated strategy of originals productions for platforms • Originals series : new exclusive series in production • Originals movie : The Life Ahead with Sophia Loren • Premium documentaries : Anelka, Gims, and more to come…
2018 2019 The Life Ahead
Mediawan - FY 2019 results 6 INTERNATIONAL EXPANSION
Business outside France has significantly increased in 2019 and will further grow thanks to new initiatives in Italy and other territories
Italy Other territories % of revenues generated outside • Acquisition of Palomar, • Europe – continued of France leading independent ambition to build a 37,3% producer in Italy leading European studio • Top domestic franchises • Strategic partnership incl. Montalbano (RAI) with Canal+ for original and Barlume (Sky) productions in Africa • Strong expertise in • Joint-venture with 21,0% international production Fantawild for the development of • Exciting line -up of “Miraculous” in China premium projects incl. “That Dirty Black Bag ” in production in 2020
2018 2019
Mediawan - FY 2019 results 7 NEW BUSINESS MODELS FOR OUR TV CHANNELS
The group is developing new business opportunities and business models for its 17 channels x2 paying subscribers Development of business with platforms Increased international activity in only 2 months between January and March 2020 [1] Launch of Amazon channels Need for new premium channels to in October 2019 respond to the rise of the international pay -tv market Continued business with existing platforms ( Molotov…) Distribution in Africa : Development of the African market is a source of Need for new services might market opportunities: signature in emerge from the launch of 2019 of a long-term deal with Apple TV in France Canal+ International
[1] +107% increase in paying subscribers for Mediawan channels on Amazon Prime Video Channels between January 4th and March 7th
Mediawan - FY 2019 results 8 IMPLEMENTATION OF SYNERGIES MULTIPLE CO-PRODUCTION INITIATIVES ACROSS THE GROUP
In only a few months of activity, productions labels across the group have initiated multiple projects in co-development focused on premium and international projects
Le comte de Monte-Cristo Constance aux enfers
/ /
in development in development Pinocchio & the enchanted village
Envole-moi Mia & Charlie Call my agent (Italy)
/ / /
in production in development in development in production
Mediawan - FY 2019 results 9 ORGANIZING AN INTEGRATED MEDIA GROUP
Strengthening of the management team ➢ Recruitment of Delphine Cazaux as Chief Operating Officer ➢ Other new arrivals incl. in top management functions incl. IT, HR, Digital/Marketing and Communications
Reunion of all entities under one roof ➢ All teams gathered in a single location in central Paris ➢ Intended to become a real talent incubator dedicated to the production and the innovation of audiovisual and digital contents
Centralization of corporate functions and services ➢ Group reorganization with clear responsibilities for each service ➢ Internal mobility enabling people to enlarge scope of action across the group
Reshaped group identity and brand ➢ In progress
Mediawan - FY 2019 results 10 MAINTAINED GROWTH TRAJECTORY
Revenues have more than doubled between 2017 and 2019 Entering the TOP 10
+31% reported of independent TV +13.9% organic growth producers in the +58% reported +13.0% organic growth 338,0 321,9 world, after less than 3 years 258,6
202,4 of existence LTM 163,8 reported revenues (2017 FY contribution)
Dec. 2017 June 2018 Dec. 2018 June 2019 Dec. 2019
Mediawan - FY 2019 results 11 Inspector Montalbano Commissaire Montelbano (12x34’)
Solid financial results
12 | Mediawan FY 2019 Results FY19 REVENUES : ALL UNITS CONTRIBUTING TO ORGANIC GROWTH
➢ Originals: progression in line In €m 2018 A 2018 PF 2019 A yoy growth o/w organic with increase of production volumes 88.4 113.7 124.1 +40% +9% ➢ Animation: significant growth supported by delivery of the Playmobil movie for approx. 26.8 42.4 68.7 +156% +62% €32m in Q2 2019
➢ Rights: record year in 35.9 33.5 37.2 +4% +11% distribution thanks to significant sales in H2 2019
107.1 107.1 107.9 +1% +1% ➢ Thematics: back to growth thanks to advertising (+18%) and contribution of new TOTAL 258.6 296.6 338.0 +30.7% +13.9% initiatives
Mediawan - FY 2019 results 13 CONSOLIDATED P&L
Key points of attention Consolidated P&L
EBITDA of €53.2m or 15.7% margin In €m 2019 2018 ➢ Driven my mix effect and significant increase in production volumes Revenues 338.0 258.6 ➢ Would be approx. 17.4% excl. revenue impact of EBITDA (1) 53.2 49.1 the Playmobil movie D&A (excl. audiovisual rights) (10.8) (5.2)
Reported net income affected by significant Adjusted EBIT (2) 42.3 43.9 non-operating items
➢ Cf. adjusted net income on next page Other income / (expense) (10.0) (10.2)
Amort. of assets recognized through business combination (25.6) (30.1)
Financial income of €(9.2)m Financial income / (expense) and affiliates (9.2) (3.2)
➢ Mainly corresponds to the cost of the €230m bank Earning before tax (EBT) (2.5) 0.4 facilities and related swap instruments
➢ Includes €0.1m losses from equity affiliates Tax income 1.5 5.5
Minority interests 1.5 0.9 Positive CIT impact of +€1.5m Net Income group share ➢ Effective tax of €(8.6)m compensated by variation 0.5 5.0 of deferred tax by +€10.1m [1] After amortization of audiovisual rights (other than recognized through business combinations) [2] Before amortization of assets recognized through business combinations
Mediawan - FY 2019 results 14 ADJUSTED NET INCOME AND EPS
Key points of attention 2019 2018 Net Net In €m EBT Tax Minorities €25.6m amortization of assets recognized Income Income through business combination ➢ Net impact of €14.6m (vs. €15.9m in 2018) Reported net income (2.5) 1.5 1.5 0.5 5.0
Other expenses include €6.4m non-recurring Amort. of assets recognized costs and €3.6m non-cash remuneration 25.6 (7.5) (3.5) 14.6 15.9 through business combination ➢ Net impact of €8.0m (vs. €9.4m in 2018) Non-recurring costs (incl. M&A 6.4 (0.4) (1.4) 4.6 4.8 and other exceptional expenses) Depreciation of deferred tax assets for 1.8m Non-cash remuneration expense ➢ Related to internal reorganization and tax 3.6 (0.1) (0.1) 3.4 4.6 integration effect (incl. IFRS3 and free shares)
Diluted nosh of 32.6m shares on average Exceptional tax / financial result - 1.8 (0.8) 1.0 (2.9) ➢ 31.6m average share capital over the period (31.9m as of 31/12/19) Net Income group share 33.1 (4.7) (4.4) 24.0 27.4 ➢ 22.1m warrants outstanding as of 31/12/2019 (ratio 2:1) calculated with “treasury method” Adjusted EPS € 0.76 € 0.94 Adjusted EPS – diluted € 0.74 € 0.89
Mediawan - FY 2019 results 15 CASH FLOW GENERATION AND NET FINANCIAL DEBT
Conversion to Operating Cash Flow has reached 71% (vs. 60% in 2018). Net cash generation of +€15m over the period (adjusted for M&A and relocation) resulting in a net financial debt of €142m at year end. Implied leverage of 2.7x EBITDA.
71% conversion EBITDA to operating cash flow
Includes c.€5m of lease payments (IFRS16) Includes a 10M€ CIT compensation Mainly composed of non recurring items
Mediawan - FY 2019 results 16 Les Sauvages (6x52’)
2020 and beyond
Mediawan FY 2019 Results MANAGING THE IMPACT OF THE COVID-19 SITUATION
ENSURING THE SAFETY MONITORING IMPACT ON PRESERVING POTENTIAL OF OUR EMPLOYEES GROUP ACTIVITY FOR 2020 FOR FUTURE GROWTH AND OUR PARTNERS
Global application of Delays in production Continue developing new protection initiatives schedules projects/ productions Measures facilitating Downturn in theatrical Preparing conditions for remote work movie release interrupted productions to resume shooting as Specific initiatives Indirect impact to be soon as practicable ensuring business assessed continuity in post- production and broadcasting
Mediawan - FY 2019 results 18 PURSUING EFFORTS IN NEW PRODUCTION
Selection of new projects for delivery in 2020 (1)
New That Dirty La Flamme Luther War is Over returning Divorce Club Il Supplente Produced by Black Bag (Canal+) (TF1) (Rai) series (SND) (Discovery) Gilles de Maistre (FTV) New feature film to be 3615 New original The life Brutus Maroni Barlume Monique series ahead (Orange … released in 2020 (Arte) (Sky Italy) (OCS) (Warner TV) (Netflix) Studio) From a new franchise of animal fiction movies, after the international success of Mia & the Developments for the long-term strategy White Lion ➢ Focus on international projects – e.g. Castro, Foreign Legion, Big Five,… ➢ Launch of new recurring series for longer-term visibility
[1] Subject to changes in production and delivery schedules
Mediawan - FY 2019 results 19 DELIVERING A SOLID LINE-UP IN ANIMATION
2020 will be a record year for production of new animation programs at Mediawan. Apart from the delivery of last episodes of ‘Power Players’ (Cartoon Network, Netflix) and the launch of the production of the feature film ‘Miraculous’ (to be delivered in 2021), the group will have up to 5 series simultaneously in production. Most significant volumes to be delivered in 2021 (with modest impact on 2020).
launched in launched in to be launched in 2019 2019 2020
to be launched in launched in launched in 2020 2018 2019
Season 2 Seasons 4 & 5 Season 1 52x11’ episodes 52x26’ episodes 76x7’ episodes 4-12 yo 3-6 yo Season 1 Feature Film Season 3 76x7’ episodes 52x13’ episodes 3-6 yo
Mediawan - FY 2019 results 20 ADAPTING OUR BUSINESS MODELS
MORE UPSTREAM POSITIONING NEW FORMS OF MONETIZATION
Co-production role with 3 rd parties Launch of new platforms will create additional Association to new projects from opportunities for dedicated inception SVOD offers More international content Leverage on brand and depth of dedicated niche content to create thematic content offers
Mediawan - FY 2019 results 21 STRENGTHENING OUR DIGITAL STRATEGY
Youtube Snapchat TikTok App
More than 6 billion views f o r 3 n e w S n a p s h o w s Almost 5M views f o r t h e 88M downloads o n t h e the Group content launched in 2019 first Mediawan Group Miraculous app challenge dedicated • On Entertainment : - 105 episodes to E s p o r t : - Total views:5.6 Bn (+28%) - Total views: 342M - Followers: +10M - Followers: 750k # EpicGamerThings
• M e d i a w a n T h e m a t i c s : E s p o r t Z o n e : - Total views: 710 M (+180%) 1 s t S n a p s h o w in e S p o r t - Followers: 2.5M (+250%) Mon Science & V i e J u n i o r : leader in science
Facebook Mediawan • N e w a n t i - piracy unit for content • Focus 2020 with new strategy: launch p r o t e c t i o n (fingerprinting) broadcasting of the catalog library content • Coming developments: • Successful strategy: - Podcast regarding the Group’s IP assets in only 2 months in 2020, already same level of - New digital studio creation earnings than FY 2019 - Original digital content production
Mediawan - FY 2019 results 22 MAINTAINING MID-TERM GROWTH TRAJECTORY
MID-TERM ORGANIC GROWTH TARGETS STILL ON TRACK DESPITE PRESSURE ANTICIPATED IN 2020 ➢ Average organic growth above 10% in the mid-term
INTACT OBJECTIVE TO ESTABLISH EUROPEAN LEADERSHIP ➢ Acquisitions in strategic geographies or segments
Mediawan - FY 2019 results 23 Appendices
Mediawan FY 2019 Results SUMMARY BALANCE SHEET
Key points of attention Consolidated balance sheet
In €m 2019 2018 Increase in intangible assets to €377m due to consolidation of acquired business libraries and investments in new content Intangible assets 377.4 361.3 (productions and distribution rights) Goodwill 189.9 164.7 Increase in other assets is mainly due to IFRS16 rights-of-use Other assets 75.8 19.6 Net financial debt of €142m Total assets 643.1 545.6 ➢ Consolidated cash position of €37m
➢ Gross debt mainly relates to €171m credit facility Shareholders’ equity 229.2 221.6 ➢ Exclude €80m of production credits associated to ongoing productions Net financial debt 142.2 120.9 Production credits 79.7 41.7 Increase in other liabilities at €134m due to : Other liabilities 134.4 79.5 ➢ The additional “put options” recognized for Palomar, Radar Films, Carte Blanche and Black Dynamite Net Working capital 57.6 81.9 ➢ The capitalized leases under IFRS16 Total liabilities 643.1 545.6 Negative working capital of €(58)m consistent with industry practice in content production and distribution
Mediawan - FY 2019 results 25 La Flamme Bientôt sur Canal+
Merci.
Mediawan - FY 2019 results