AN INTRODUCTION TO RTL GROUP October 2016 Entertain. Inform. Engage. Agenda 1 WHO WE ARE 2 HOW WE DO 3 WHERE WE GO 2 RTL Group is a leader across broadcast, content and digital LEADING TV BROADCASTER IN EUROPE LEADING GLOBAL TV PRODUCER GLOBAL POWERHOUSE IN ONLINE VIDEO 3 60 TV channels Venture with CBS in South East Asia Among other territories in Thailand Malaysia Singapore Philippines Indonesia Vietnam 4 31 radio stations in 6 European countries 5 RTL Group, a leading international content producer operations in 31 countries, creating over 10,000 hours of TV programming a year airing 375 productions worldwide produces number one primetime shows for major broadcasters in almost every major TV market in the world distributes more than 20,000 hours of content in over 200 territories Got Talent The X Factor The Farmer Wants A Wife The Price Is Right Take Me Out Wentworth Gute Zeiten, schlechte Zeiten 6 A pioneer in European radio and television The digital age Radio Luxembourg Télé Luxembourg Launch of goes on air for French-language commercial channels the first time TV Channel 1924 1955 1980 – 1990 2000 – 2010 1924 1930 1940 1950 1960 1970 1980 1990 2000 2010 1990 – 2000 1933 1972 Radio Luxembourg First colour launches broadcast internationally Building families of channels 7 A truly European group 1931 1954 1997 2000 2013 *24.1% *75.1% Publicly traded on the Bertelsmann Frankfurt/Main, Brussels and Luxembourg Stock Exchanges As of 2 October 2013 * Excluding 0.76% which is held collectively as treasury stock by RTL Group and one of its subsidiaries 8 Agenda 1 WHO WE ARE 2 HOW WE DO 3 WHERE WE GO 9 Highlights Impressive results in 2015 +3.8% +72.2% €6,029 million €0.51 billion Revenue DigitalOrdinary revenue dividend 19.4% +2.0% EBITA Margin +21.0% €1,167 million €789 million Reported EBITA Net profit 10 Broadcast: status of market positions RTL Group audience share in 2015 and position in target group* Germany Netherlands Belgium 28.4% 32.7% 36.6% No.1 Hungary France (Radio) 36.9% 18.8% France (TV) Spain Croatia 22.6% 29.2% 27.5% No.2 RTL Group No. 1 or 2 in all markets of operation *Source: RTL Group Full-Year Results 2015 11 Highlights Digital has become a key driver of RTL Group’s top-line growth VIDEO VIEWS RTL GROUP DIGITAL REVENUE In billion In € million Non-advertising 105 Advertising +72.2% 508 295 36 233 17 2013 2014 2015 2013 2014 2015 4.0% % of total RTL Group revenue 8.4% Source: all internal figures 12 Agenda 1 WHO WE ARE 2 HOW WE DO 3 WHERE WE GO 13 Growing our broadcast portfolio BROADCAST Newly launched channels growing above expectations Strengthen family of channels ✔ Platform revenues have become significant profit contributors in Germany, France, The Grow Netherlands and Belgium non-ad business ✔ #1 or #2 in 8 European countries Leading broadcaster: RTL CBS Asia Entertainment Network Expand into high 53 TV channels and launched two channels in Southeast Asia 28 radio stationsgrowth markets ✔ 14 Family of channels Constant expansion to counter fragmentation Successful launches Launched in 2016 Mediengruppe RTL Deutschland GER ✔ Launched on 18 January 2016 Offers Germans living abroad a wide range of RTL Television formats in HD FR ✔ Launched on 04 June 2016 RTL Plus offers an entertaining mix of popular NL classics and exclusive in-house productions ✔ Toggo Plus is Germany's first timeshift channel broadcasting children's programmes HU ✔ RTL Croatia HR Launched on 11 July 2016 ✔ Offers news and entertainment shows from RTL Croatia to Croats living outside the country 15 Geographic expansion Joining forces in Asia The two pay-TV channels have already been launched in the following markets among Partnership others Malaysia ✔ #1 in Europe #1 in the US Singapore ✔ Philippines ✔ Launched Launched Thailand ✔ Family entertainment targeting Male-skewed entertainment basic pay-TV around action, sports and reality Indonesia ✔ 16 Broadcast Priorities going forward 1 Invest in top content 2 Grow new channels 3 Expand footprint in high growth markets 4 Grow second revenue stream 17 Create market-leading content CONTENT CONTENT Resizing of resources concluded Initiatives to drive format development in place Maintain leading position ✔ Acquisitions to strengthen scripted and local entertainment productions Rebalance portfolio ✔ #1 global TV entertainment content producer Growth of online revenues Deepen ✔ 9,000 hours ofInvestments programming; to strengthen online digital exploitation Distribution intoproduction 200+ territories and distribution 18 Content Priorities going forward 1 Maintain core business 2 Diversify portfolio 3 Grow and develop the network 4 Build a scalable digital business 19 Driving digital transformation DIGITAL Increase of total digital revenue +72.2%DIGITAL YoY Structural move in digital monetisation: acquisition of SpotX and Smartclip, Grow online ad investments in Clypd and VideoAmp and non-ad business ✔ Europe’s #1 media company in online video Currently generating 19 bn video views Expand per month non-linear services ✔ Leading European media Cornerstone investments incompany leading MCNs in online video Enter multi-channel on YouTube ✔ Strong online sales houses network business Investments in fashion and comedywith multi verticals-screen expertise 20 Digital Priorities going forward 1 Grow online business 2 Expand non-linear services 3 Develop multi-channel network business 4 Strengthen online advertising sales capabilities 21 In a nutshell, broadcast, content, digital merge into Total Video Capture long and Solutions for convergent short-form video growth video advertising USAGE SALES BROADCAST Build brands for TOTAL Cross-screen mainstream and niche VIDEO media technology PROGRAMMING CONTENT DIGITAL TECHNOLOGY 22 23 .