RTL Group Corporate Communications 45, boulevard Pierre Frieden L-1543 Luxembourg T: +352 2486 5201 F: +352 2486 5139 FIVE-YEAR SUMMARY RTLGroup.com 2011 2010* 2009** 2008 2007 € m € m € m € m € m Revenue 5,765 5,532 5,156 5,774 5,707 – of which net advertising sales 3,459 3,362 3,062 3,656 3,615 Other operating income 40 51 43 37 71 Consumption of current programme rights (1,791) (1,711)(1,673)(2,095)(2,048) Depreciation, amortisation and impairment (178) (192)(179)(161)(213) Other operating expenses (2,746) (2,591)(2,577)(2,685)(2,689) Impairment of goodwill and fair value adjustments and amortisation of fair value adjustments on acquisitions of subsidiaries and joint ventures (13) (10)(88)(395)(142) Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree 107 (7) – (9) 76 Profit from operating activities 1,184 1,072 682 466 762 Share of results of associates 38 40 25 34 60 Earnings before interest and taxes (“EBIT”) 1,222 1,112 707 500 822 Net interest income/(expense) (2) 12 4 21 (4) Financial results other than interest (27) 4 23 7 26 Profit before taxes 1,193 1,128 734 528 844 Income tax income/(expense) (302) (263)(234)(232)(170) Profit for the year from continuing operations 891 865 500 296 674 Loss from discontinued operations (96) (135)(202) –– Profit for the year 795 730 298 296 674 Attributable to: RTL Group shareholders 696 611 205 194 563 Non-controlling interests 99 119 93 102 111 Profit for the year 795 730 298 296 674 2 011 EBITA 1,134 1,132 796 916 898 Impairment of goodwill (including disposal group) and fair value adjustments and amortisation of fair value adjustments on acquisitions of subsidiaries and joint ventures (13) (10)(88)(395)(152) 2011 Impairment of investments in associates (6) (3)(1)(12) – Gain/(loss) from sale of subsidiaries, other investments and Report re-measurement to fair value of pre-existing interest in acquiree 107 (7)–(9) 76 ANNUAL REPORT Earnings before interest and taxes (“EBIT”) 1,222 1,112 707 500 822 THE LEADING Basic earnings per share (in €) 4.53 3.98 1.33 1.26 3.67 Annual Ordinary dividend per share (in €) 5.10 5.00 3.50 1.40 1.30 ( ) EUROPEAN Extraordinary dividend per share in € – – – 2.10 3.70 Dividends paid (€ million) 789 774 541 541 774 Average number of full-time equivalent employees 9,621 9,286 9,608 9,191 8,894 Net assets (€ million) 5,093 5,597 5,530 5,871 6,448 Group ENTERTAINMENT Net cash (€ million) 1,238 1,456 789 876 1,059 *Re-presented following the application of IFRS 5 to Alpha Media Group (discontinued operations) ( ) **Re-presented following the application of IFRS 5 to Five discontinued operations RTL NETWORK SHARE PRICE PERFORMANCE 2007 – 2011 – 9.1 % (2011: + 0.4 %) INDEX = 100 RTL Group DJ STOXX – 32.8 % FULLY (2011: – 10.6 %) CONSOLIDATED REVENUE (€ million) 11 5,765 IGURES 10 5,532* PROFIT CENTRES 09 5,156 08 5,774 F 07 5,707 AT A GLANCE + 4.2 % EB ITA (€ million) EY 11 1,134 * Re-presented 10 1,132* following the application of IFRS 5 to K 09 796 Alpha Media 2007 – 2011 08 916 Group (discontinued 07 898 operations) 2011 2010 2009 2008 2007 + 0.2 % RTL NEDERLAND € m € m € m € m € m NET PROFIT ATTRIBUTABLE TO RTL GROUP SHAREHOLDERS (€ million) Revenue 491 429 371 436 408 11 696 EBITA 134 110 72 70 85 10 611 09 205 08 194 07 563 2011 2010 2009 2008 2007 RTL BELGIUM € m € m € m € m € m + 13.9 % Revenue 216 219 203 216 210 EQUITY (€ million) EBITA 46 45 36 39 49 11 5,093 10 5,597 09 5,530 08 5,871 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 MEDIENGRUPPE RTL DEUTSCHLAND € m € m € m € m € m RTL RADIO (FRANCE) € m € m € m € m € m 07 6,448 Revenue 1,912 1,892 1,732 2,020 1,966 Revenue 184 182 174 189 190 – 9.0 % EBITA 529 551 366 414 329 EBITA 30 24 15 32 33 MARKET CAPITALISATION (€ billion) 11 11.9 10 11.9 2011 2010 2009 2008 2007 2011 2010 2009 * 2008 2007 09 7.3 GROUPE M6 € m € m € m € m € m RTL KLUB € m € m € m € m € m 08 6.6 07 12.5 Revenue 1,421 1,459 1,377 1,354 1,357 Revenue 99 105 83 – – EBITA 249 245 195 196 237 EBITA 15 19 18 10 ** 7 ** * RTL Klub has been fully consolidated from April 2009 ** Group contribution SHAREHOLDING STRUCTURE 31 December 2011** TOTAL DIVIDEND PER SHARE (€ ) RTL GROUP 11 5.10 2011 2010 2009 2008 2007 2011 2010 2009 2008 2007 10 5.00 FREMANTLEMEDIA € m € m € m € m € m RTL HRVATSKA € m € m € m € m € m BERTELSMANN AG 09 3.50 92.3 % 08 3.50 Revenue 1,429 1,272 1,183 1,203 1,132 Revenue 37 38 41 50 48 PUBLIC 07 5.00 7.7 % EBITA 143 140 155 155 131 * EBITA 0 (3) (3) 2 2 * Restated Dividend payout 2007− 2011: € 3.4 billion ** Excluding 0.76% which is held collectively as treasury stock by RTL Group and one of its subsidiaries 2011 ANNUAL REPORT THE LEADING EUROPEAN ENTERTAINMENT NETWORK Les Grosses Têtes RTL Radio (France) Referee in a battle of words. Vincent Perrot, on his original tennis referee’s chair, is one of the ‘sociétaires’ of the extremely popular radio show Les Grosses Têtes on RTL Radio in France. The referee judges the quality of the exchanges between legendary moderator Philippe Bouvard and his guest, and awards points. Perrot is a colourful character: he allegedly had an affair with Liza Minelli and definitely holds a world record for drag racing, having accelerated to the top speed of 530.69 km/h in just 3.8 seconds. CONTENTS CORPORATE INFORMATION RED CARPET 6 CHAIRMAN’S STATEMENT 2011 2011 SPECIAL 8 CHIEF EXECUTIVE’S REPORT THE EDITION STARS ISSUE IN THE 13 THE NEW CEOs FOLD-OUTSEE THEM ALL 14 PROFIT CENTRES AT A GLANCE 16 PHOTO STORY: BACKSTAGE 78 THE YEAR IN REVIEW 106 CORPORATE RESPONSIBILITY 116 OPERATIONS 118 HOW WE WORK 120 THE BOARD 125 EXECUTIVE COMMITTEE FINANCIAL INFORMATION 128 DIRECTORS’ REPORT 132 Mediengruppe RTL Deutschland 136 Groupe M6 138 FremantleMedia 141 RTL Nederland 144 RTL Belgium 147 RTL Radio (France) 150 Other segments 164 CONSOLIDATED FINANCIAL STATEMENTS 169 NOTES 228 AUDITORS’ REPORT 230 CREDITS 231 FULLY CONSOLIDATED PROFIT CENTRES AT A GLANCE 233 FIVE-YEAR SUMMARY CHAIRMAN’S BY SIEGFRIEDSTATEMENT LUTHER Despite a mixed picture on the European TV advertising markets, RTL Group once again achieved very good results. While revenue grew by 4.2 per cent, all the key financial benchmarks – EBITA, margin, net result – have remained at the very high level of the record year of 2010, as RTL Group continued to outperform the advertising markets. 6 RTL Group Annual Report 2011 Chairman’s statement Strong audience shares are – and will remain – fundamental to success in the TV industry: advertisers want to reach mass “RTL Group’s audiences quickly, and all distribution platforms need the broad- casters’ content to gain new customers. RTL Group’s flagship flagship channels channels underlined their popularity impressively in 2011. In Germany, RTL Television remained young viewers’ number one choice by a large margin, and for the 19th consecutive year. underlined With an 18.4 per cent audience share among viewers aged 14 to 49, the channel achieved its best full-year ratings since 1997. their popularity In France, M6 was the only major broadcaster to increase its impressively ratings, and is now the third most popular channel overall and a strong number two in the key commercial target group. in 2011.” RTL Nederland’s four free-to-air channels scored a combined prime time audience share of 35.2 per cent among viewers aged 20 to 49 – the best results in 14 years – driven by the market leader RTL 4. In Belgium, RTL-TVI remains the country’s top channel by a large margin. RTL Group rounded off its portfolio during 2011, by regaining full control of its highly profitable Dutch TV operations, building families of channels and buying out minority shareholders in Hungary and Croatia, and by exiting the declining Greek broad- casting market. ing an impressive range of mobile applications. The company is well suited to take advantage of the business opportunities The RTL Group share price finished the year at €76.99 – prac- presented by the digital world. tically unchanged from €76.7 at the end of 2010 – while the DJ STOXX index of European media shares decreased 10.6 per At the beginning of February 2012, Gerhard Zeiler, Chief cent over the year. Executive Officer of RTL Group since 2003, announced that he will leave the company on his own request with effect from the In April 2011, Onno Ruding left the RTL Group Board of next Annual General Meeting on 18 April 2012, to take on a new Directors after more than ten years in which he had a significant challenge. Guillaume de Posch and Anke Schäferkordt – two influence on the company’s development. He had always been exceedingly experienced, internationally recognised managers – a role model of an independent director – diligent, experienced will succeed him as co-CEOs. Elmar Heggen, RTL Group CFO and with clear principles about good corporate governance in a and Head of the Corporate Centre in Luxembourg, Guillaume publicly listed company.