FULL YEAR RESULTS 2019 ENTERTAIN. INFORM. ENGAGE. KEY FIGURES SHARE PERFORMANCE (1 January 2019 to 31 December 2019) +31.15 % MDAX +16.41 % SXMP –5.82 % RTL GROUP INDEX = 100 –10.55 % PROSIEBENSAT1 RTL Group share price development for January to December 2019 based on the Frankfurt Stock Exchange (Xetra) against MDAX, Euro Stoxx 600 Media and ProSiebenSat1 Fremantle’s America’s Got Talent: The Champions is a prime-time hit on NBC. 2 RTL Group Full-year results 2019 REVENUE 2015 – 2019 (€ million) EBITA 2015 – 2019 (€ million) 19 6,651 19 1,139 18 6,505 18 1,171 17 6,373 17 1,248 16 6,237 16 1,205 15 6,029 15 1,167 PROFIT FOR THE YEAR 2015 – 2019 (€ million) EQUITY 2015 – 2019 (€ million) 19 864 19 3,825 18 785 18 3,553 17 837 17 3,432 16 816 16 3,552 15 863 15 3,409 MARKET CAPITALISATION* 2015 – 2019 (€ billion) TOTAL DIVIDEND / DIVIDEND YIELD PER SHARE 2015 – 2019 (€) (%) 19 6.8 19 4.00 8.7 18 7.2 18 4.00* 6.3 17 10.4 17 4.00** 5.9 16 10.7 16 4.00*** 5.4 15 11.9 15 4.00**** 4.9 *As of 31 December * Including an interim dividend of € 1.00 per share, paid in September 2018 ** Including an interim dividend of € 1.00 per share, paid in September 2017 *** 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 CASH CONVERSION RATE* 2015 – 2019 (%) PLATFORM REVENUE* 2015 – 2019 (€ million) 19 105 19 368 18 90 18 343 17 104 17 319 16 97 16 281 15 87 15 248 *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 3 RTL Group Full-year results 2019 “ WE ARE BOOSTING OUR STREAMING SERVICES AND GLOBAL CONTENT BUSINESSES” “Driven by the strong performances of our three largest business units, RTL Group achieved all financial goals in 2019: revenue grew on an underlying basis by 3.2 per cent, EBITA remained broadly stable despite higher investments, and Group profit was up by 10 per cent. Our strategy builds upon three priorities. Firstly, strengthening our core businesses including consolidation across our broadcasting footprint. Secondly, boosting our streaming services and global content business, Fremantle. And thirdly, fostering alliances and partnerships in the European media industry. Within this framework, we put a particular focus on becoming national streaming champions in the countries where RTL Group has leading families of channels and on building an open European tech platform for streaming services. Over the next five years, we aim to grow the number of paying subscribers for our streaming services TV Now in Germany and Videoland in the Netherlands to between 5 and 7 million, to grow our streaming revenue to at least € 500 million and to break even by 2025.” Thomas RABE CHIEF EXECUTIVE OFFICER RTL GROUP 2019 REVENUE OF € 6.7 BILLION AT ALL-TIME HIGH, PROFIT UP 10 PER CENT Revenue up 3.2 per cent on an underlying basis Adjusted EBITA broadly stable at € 1.16 billion, despite higher investments Profit for the year up 10.1 per cent to € 864 million Attractive shareholder returns: dividend of € 4.00 per share represents 81 per cent of the reported EPS, in line with the new dividend policy Mediengruppe RTL Deutschland and Groupe M6 with higher audience and TV advertising market shares; Fremantle with revenue growth of 12.6 per cent Paying subscribers for RTL Group’s streaming services TV Now and Videoland up 37 per cent to 1.44 million RTL Group to boost its streaming services, targeting 5 to 7 million paying subscribers by 2025 Luxembourg, 13 March 2020 − RTL Group announces its audited results for the year ended 31 December 2019. FINANCIAL REVIEW 2019 2018 Per cent € m € m change Revenue 6,651 6,505 +2.2 Underlying revenue1 6,518 6,317 +3.2 Adjusted EBITA 1,156 1,171 (1.3) Adjusted EBITA margin (per cent) 17.4 18.0 Reported EBITA 1,139 1,171 (2.7) EBITDA2 1,405 1,380 +1.8 Impairment losses of goodwill – (105) Impairment of investments accounted for using the equity method (50) (2) Depreciation, amortisation and impairment (281) (224) Re-measurement of earn-out arrangements and gain / (loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree 87 27 EBIT4 1,161 1,076 +7.9 Net financial expense (5) (13) Income tax expense (292) (278) Profit for the year 864 785 +10.1 Attributable to: – Non-controlling interests 110 117 1 Adjusted for scope changes, the – RTL Group shareholders 754 668 +12.9 wind-down of StyleHaul and at constant exchange rates 2 See note 3.˙ to the consolidated ( ) financial statements in the Reported EPS in € 4.91 4.35 +12.9 RTL Group Annual Report 2019 5 RTL Group Full-year results 2019 RTL GROUP REPORTS RECORD REVENUE FOR THE FIFTH CONSECUTIVE YEAR ■ Group revenue increased 2.2 per cent to € 6,651 stable at € 1,156 million (2018: € 1,171 million). The million (2018: € 6,505 million), mainly driven by Adjusted EBITA margin was 17.4 per cent. higher revenue from Fremantle and RTL Group’s Reported EBITA6 was € 1,139 million compared to digital businesses. On an underlying basis3 revenue € 1,171 million in 2018 (down 2.7 per cent). grew by 3.2 per cent. ■ Profit for the year increased by 10.1 per cent to ■ Digital revenue4 was up by 8.9 per cent to € 1,073 € 864 million (2018: € 785 million), mainly due to the million (2018: € 985 million). Digital revenue capital gain from the disposal of Universum Film and accounted for 16.1 per cent of RTL Group’s total lower impairments. revenue (2018: 15.1 per cent). ■ Net cash from operating activities was ■ Streaming revenue5 from TV Now and Videoland € 1,085 million, representing an operating cash was up by 46.7 per cent, to € 135 million (2018: conversion rate of 105 per cent (2018: 90 per cent). € 92 million). Net debt6 was € 384 million at the end of 2019 (2018: € 470 million). ■ RTL Group’s revenue is well diversified, with 44.2 per cent from TV advertising, 21.6 per cent from ■ RTL Group’s Board of Directors has proposed a content, 16.1 per cent from digital activities, 5.5 per dividend of € 4.00 per share for 2019 – on the cent from platform revenue, 4.1 per cent from radio same level as in previous years. advertising, and 8.5 per cent from other revenue. ■ Based on the average share price in 2019 (€ 45.807), ■ Adjusted for one-time effects related to the the dividend of € 4.00 per share represents a restructuring of RTL Group’s Corporate Centre in dividend yield of 8.7 per cent and 81 per cent of the Luxembourg (€ 17 million in 2019), EBITA was broadly reported EPS (€ 4.91; up 12.9 per cent year on year). 3 Adjusted for scope changes, the wind-down of StyleHaul and at constant exchange rates 4 “Digital” refers to internet- related activities with the exception of online sales of merchandise (“e-commerce”). Digital revenue spreads over the different categories of revenue, i.e. other advertising sales, revenue from distribution and licensing content, consumer and professional services 5 Streaming revenue includes SVOD, TVOD and in-stream revenue from TV Now and Videoland 6 See note 3.˙ to the consolidated financial statements in the RTL Group Annual Report 2019 7 Frankfurt Stock Exchange 6 RTL Group Full-year results 2019 STRENGTHENING RTL GROUP’S CORE ■ Mediengruppe RTL Deutschland’s channels ■ Vox Up was the latest addition to the German family increased their combined audience share in the of channels. The new free-to-air channel shares the main target group of viewers aged 14 to 59, by advertising breaks with its sister channel Vox, while 0.6 percentage points to 28.1 per cent. This was broadcasting different programmes and thus largely due to the positive performance of the main offering more net reach for advertisers. channel RTL Television, which increased its audience share for the first time since 2011. ■ Groupe M6 completed the acquisition of France’s leading free-to-air digital channel for children, Gulli, ■ Mediengruppe RTL Deutschland outperformed the and five pay-TV channels from Lagardère. As a German net TV advertising market, also thanks to result, Groupe M6 gained audience and TV the power of the German Ad Alliance. advertising market shares in 2019. BOOSTING GROWTH BUSINESSES ■ At the end of 2019, RTL Group registered Belgium, Hungary and Croatia. RTL Group has 1.44 million paying subscribers for its streaming agreed to become a 50 per cent shareholder of services (TV Now in Germany and Videoland in the Bedrock, which will be a European platform open to Netherlands), up 37 per cent year on year. The third parties. viewing times of TV Now and Videoland also increased over the year, by 31 per cent and 45 per ■ Fremantle ’s revenue was up 12.6 per cent to cent respectively. € 1,793 million (2018: € 1,592 million). Its drama business continued to grow, with the second season ■ RTL Group aims to grow its total number of paying of American Gods, the first commission for Norway subscribers in Germany and the Netherlands to with Exit, and the second seasons of The New Pope between 5 and 7 million, to grow streaming revenue and My Brilliant Friend: The Story of a New Name.