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. 4 week 16 the RTL Group intranet “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. 5 week 16 the RTL Group intranet 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.