Transcription
RTL GROUP PRESENTATIONBrussels, 21 June 2013The leading European entertainment network
Agenda Q1 HIGHLIGHTSo Business Reviewo Strategy Review2
Quarter 1 highlights 2013REVENUE 1.3 billionREPORTED EBITA continuing operations 207 millionEBITA MARGINCASH CONVERSIONNET DEBT POSITIONNET RESULT15.6%164% 278 million 133 millionQUARTER 1BUSINESSESSTRATEGYSTRONG OPERATIONAL RESULTS AND EXCEPTIONAL CASH GENERATION3
Agendao Q1 highlights BUSINESS REVIEWo Strategy Review4
Leading integrated pan-European entertainment networkwith a truly global presenceBROADCAST#1 in Europe#1 in Germany#1 in Benelux#2 in France CONTENT#1 global TVentertainmentproducerProductions in 62countriesDistribution into 150 markets DIGITALFollow viewersacross all platformsOnline network of200 websites 6.9bn video viewsRTL Group 2012QUARTER 1BUSINESSESRevenue 6.0bnEBITA 1.1bnSTRATEGY5
RTL Group: at the heart of the European media ecosystemLARGEST EUROPEAN FTA BROADCASTERLARGEST EUROPEAN CONTENT PRODUCER / DISTR.2012 CONSOLIDATED REVENUES ( BN)2012 REVENUES ( MN) 6.0bn1,711 3.7bn2x 2.7bn(a)870 2.6bn12x138 2.4bnQUARTER 1Scale matters: first choice partner for advertisers, content creators and rights ownersBUSINESSESSTRATEGY(a)Source:Converted from 712 at Global Insight 2012 rate of 0.819 / Screen Digest, company filings6
Leading positions in key European marketsGERMANYFRANCE#163#154%#2FTA channelsPay channelsAudience/ad shr.Group EBITA38#221%NETHERLANDSFTA channelsPay channelsAudience/ad shr.Group EBITABELGIUM#143#19%#1FTA channelsPay channelsAudience/ad shr.Group EBITALUXEMBOURG3#14%Germany, France, Netherlands, Belgium TVaccount for close to 90% of Group EBITA#1SPAIN#2HUNGARY#1CROATIA#2INDIAFTA channelsAudience/ ad shr.Group EBITA(a)NEW#Audience ShareQUARTER 1Leading positioning leads to premium ad prices and strong cash flowsBUSINESSESSTRATEGY(a)Note:RTL Belgium consolidates Belgian radio operations representing 2% of RTL Group EBITA; radio operations in Germany and France report as separate segments% of Group EBITA taken as % of total; includes negative contributions composed mainly of Corporate Centre costsOther Regions include: Spain (7 FTA channels, 1 Pay channel), Hungary (1 FTA channel, 7 Pay channels), Croatia (2 FTA channels) and India (1 Pay channel).Radio stations, not shown, include: Germany (18 radio stations 4 stations with #1 position); France (3 radio stations with #1 audience/ad share) Benelux (5 radio stations); Spain (2 stations)7
Audience share growth: successful channel family strategy,branding and programming Family c/Pay2.20.8Audienceshare gain2008 to 20121.7 2.3pp-1.50.3 9.1pp 1.4pp-6.9QUARTER 1Channel families successfully increase audience share and counter fragmentationBUSINESSESSTRATEGYNote:Year-on-year audience shares can fluctuate over short reference periods; Source: Germany: AGF/GfK, TV Scope 5.0, 14-49 year olds, all day, includes Super RTL and RTL II; France: Médiamétrie, Housewives 50, all day;Netherlands: SKO, 20-49 year olds, prime time8
drives outperformance across our TV ad marketsFRANCEGERMANYNETHERLANDS13%10%6%10% 3pp 10pp 11ppTV ad marketgrowthoutperfomance2008 to 2012Market-4%-1%MarketMarketNet TV advertising marketRTL Group net TV ad revenueQUARTER 1First choice for advertisers across our footprintBUSINESSESSTRATEGYNote:Source:Represents cumulative TV ad share growth; German data starting from 2009 as 2008 data is distorted by a structural change in the TV advertising market due to a competitor’s shift in ad sales model which allowed Mediengruppe RTL Deutschlandto make an exceptional net TV advertising market share gain to 46.4%; Germany includes 100% of RTL II and Super RTLRTL Group estimates, ZAW Jahrbuch, IREP, SPOT (spot and non-spot)9
Germany: #1 broadcaster with strong online networkMEDIENGRUPPE RTL nline/MobileTeletext2nd Gen(from 1993)Niche FTA(2012)MediaServices/Licensing/gamesDigital paythematics(2006)RightsQUARTER 1BUSINESSESStrongest family of channelsStrong online & mobile portfolio,profitable licensing & distributionSTRATEGY10
Focus on first class local content STRONG LOCAL CONTENTRTL TELEVISION SPLIT BY PROGRAMME HOURS 2011News & Magazines28%Reality#1Sport#1#12%13%13%US Series / Movies#1#132%Local FictionDaytime13%#1Entertainment Shows#1#Audience ShareQUARTER 187% locally produced, of which 30% in-houseBUSINESSESSTRATEGY11Source:AGF in cooperation with GfK, TV Scope 5.0, 2012, target group 14-49, individuals 3 ; differences due to rounding
.leads to strongest channel family.AUDIENCE MARKET LEADERSHIP(14-49 YEAR OLDS, ALL DAY – JAN-DEC 2012)MGD .4%2.2%RTLVOXRTL II7.0%6.8%Sat RTLn-tvNitroPro72.21.00.710.6Sat1 Kabel 1 Sixx5.3%n/aJAN-MAR 2013 (VS 2012 ANNUAL)16.18.16.5RTL MGD: 34.6%9.35.51.0P7S1: 26.6%IncreaseDecreasePubcaster: 18.8%No changeQUARTER 1Leading and growing audience share across channel familyBUSINESSESSTRATEGY12Source:AGF in cooperation with GfK, TV Scope 5.0; differences due to rounding
and solid Q1 financial resultsAUDIENCE SHARE – FAMILY OF CHANNELSSHARE OF NET ADVERTISING MARKET (in %)14-59 (in %)29.527.629.430.9 30.126.726.426.931.5 32.4 943.943.744.441.440.8 41.443.943.141.641.420092010P7S139.2P7S12005 2006 2007 2008 2009 2010 2011 2012 Q1 2013RTL46.420062007200820112012Q12013Note: P7S1 includes N24 up to 2010. 2011 and 2012 exclude SixxKEY FINANCIALS (in million)AUDIENCE SHARE 14-59 (in %)EBITAREVENUE /-0-0.8-0.7 /-0 0.3-0.145646115.09.38.25.6QUARTER 1BUSINESSESRTLxSat.1Pro7RTL IIPercentage point deviation vs FY 2012Source: GfK, ZAW and RTL Group estimates7.8Vox5.2Kabel1Q1 2012Q1 2013ROS23.9%ROS29.1%109134Q1 2012Q1 2013STRATEGYSTRONG FINANCIAL AND OPERATIONAL PERFORMANCE13
France: strong #2 broadcaster with differentiated diversificationGROUPE le2nd Gen(from 2005)Rights Distr.Niche FTA(2012)Music/ ShowsDistanceSellingDigital paythematics(from 1996)SportsQUARTER 1M6 the #2 FTA channel, W9 the leading DTTProfitable businesses including e-commerce,channel in Europe’s 3rd largest marketmobile, online and rights distributionBUSINESSESSTRATEGY14
Groupe M6: consistent outperformer in French marketOUTPERFORMANCE: AUDIENCE SHAREHOUSEWIVES 50 ALL DAYOUTPERFORMANCE: NET TV AD GROWTH11.7% 11.2%2.4% 1.6%37.7%-3.5% -4.5%33.3%33.0%20102011Groupe M617.5pp2012Market10.4ppSOLID RESULTS, GOOD MARGINS ( 493520052008Groupe e TF120112012TVDiversificationQUARTER 1Groupe M6 strong number 2, steadily closing the gap to the e, Housewives under 50; IREP, RTL Group estimates, Company data
With Q1 results demonstrating financial strengthAUDIENCE SHARE – MAIN CHANNELSNET TV ADVERTISING MARKET DEVELOPMENTHOUSEWIVES 50 ALL DAY (in %)Q1 2013 VS Q1 2012 (in %)-1.0 0.1-1.2-0.5 2.644.1MarketM6TF125.616.0M6x9.8TF1France 24.5France 3-3.9Others-10.8M6 and TF1: based on published information. Market : RTL Group estimatesPercentage point deviation vs FY 2012KEY FINANCIALS (in million)AUDIENCE SHARE – FAMILY OF CHANNELSHOUSEWIVES 50 ALL DAY (in %)-0.9 0.2-2.7Groupe M6355349ROS17.7%18.2TF1 GroupEBITAREVENUE32.420.3-13.063France TélévisionsROS17.2%60xQUARTER 1BUSINESSESPercentage point deviation vs FY 2012Source: Médiamétrie, housewives under 50, RTL Group estimatesGroupe M6: M6 and W9; TF1 Group: TF1, TMC and NT1; France TV: Fr2 – Fr5Q1 2012Q1 2013Q1 2012Q1 2013STRATEGYSOLID PERFORMANCE IN DIFFICULT MARKET CONDITIONS16
Netherlands: #1 broadcaster with innovative digital offersRTL NEDERLANDBROADCASTDIVERSIFICATIONFlagship(from 1989)Online/Mobile2nd Gen(from 1993)Teletext/TelephonyDigital paythematics(from 2009)Rights/LicensingMarket leader, well positionedchannel family with top content#1 online video sales house with growingdigital portfolioQUARTER 1BUSINESSESSTRATEGY17
RTL Nederland: clear market leadership .AUDIENCE SHARE LEADERSHIPNET TV ADVERTISING GROWTH20-49, PRIMETIME15.4%32.9%11.7%10.2%4.3%32.3%-6.1% -5.4%30.1%20103.2pp26.9%20112012RTL Nederland12.3ppMarketSTRONG TOP-LINE & PROFITABILITY ( MN)24.0%EBITAREVENUE20.0%25%43020082010RTL 2012QUARTER 1Strongly positioned family of channels outperforming competitionBUSINESSESSTRATEGY18Note:Revenue and EBITA in 2011 exclude radio operations
.continuing into Q1 2013AUDIENCE SHARE: 20-49, PRIMETIME (in %)NET TV ADVERTISING MARKET DEVELOPMENTQ1 2013 vs Q1 2012 (in %) 1.3-3.0-0.8-1.4 0.9Market19.8RTL 4x14.48.44.55.6NED 1SBS 6RTL 5Net 5Percentage point deviation vs FY 2012-5,7-7,2Source: RTL Group estimates (spot and non-spot)AUDIENCE SHARE – FAMILY OF CHANNELSKEY FINANCIALS (in million) 0.732.220.7RTL NederlandQUARTER 1BUSINESSESxSBSEBITAREVENUE20-49, PRIMETIME (in %)-0.1RTL Nederland-2.49092ROS5.6%ROS4.3%54Q1 2012Q1 201326.7Ned 1-3Q1 2012Q1 2013Percentage point deviation vs FY 2012STRATEGYMARKET LEADERSHIP MAINTAINED19
RTL Belgium, undisputed market leaderBELGIUM SOUTH TV AD MARKET AND RTL BELGIUMSHARE (2008-2012)CAGRRTL BELGIUM SNAPSHOTKey highlights1st Geno Audience share leader by asignificant margin2nd Geno Ad share leadership – 3xbigger than closestcompetitoro Leading formats across allshow typesRadioo Leadership in radioAUDIENCE SHARE DEVELOPMENT(BELGIUM SOUTH, 18-54, PRIME 70.4%71.0%71.5%Ad mkt70.2%shareTV ad intensityNote: TV ad intensity is based on whole of BelgiumSource: RTL Group estimate, IMF, Screen DigestNet TV market ( mn)RTL BELGIUM FINANCIAL PERFORMANCE RTLQUARTER 9201020112012Q1 2013Margin18%21%21%21%24%Source: CIM TV South, 17-23hSource: Company dataSTRATEGY20
FremantleMedia: TV entertainment production and rightsexploitation - ibutionoProduced more than 9,100 hours of original TV contentin 2012oDelivers long-lasting blockbusters for broadcasters around theworldoExploits the value of brands on TV and beyondoDistributes a library of over 20,000 hours of programming in morethan 150 territoriesoBrings brands closer to the audience through new technologiesand distribution channelsDigitalQUARTER 1BUSINESSESHighly complementary: 29% of Group revenue, 13% of Group EBITASTRATEGY21
FremantleMedia develops, produces and invests in adiversified portfolio of brandsNON-SCRIPTED#1 entertainment seriesfor 9 years in US#1 daytime entertainmentshow in USHighest rated entertainmentshow in Holland since 1995World’s top travelling format in2010 and 2011On air since 1976 in USHighest-rated launch ever onDiscovery Channel#1 rated show in UKin 2011#1 game show on France 3Show and spin-off both in top 5programmes on A&ESCRIPTEDKIDS & FAMILY#1 rated showacross FTA digitalchannels in 2011#1 drama in Hungary#1 on Cbeebies in2012 for kids 4-6UK Premiere ranked#1 in time slot (boys6-12)#1 in its slotfor 14-49s in Germany#1 daily drama inFinland for 12 years#2 premiere onCBBC in 2012 forkids 6-12Series finale ranked#1 in time slot (kids6-12)#1 drama on Rai 3Sold to 52broadcasters inover 150 territories#1 US-cable show inits slot for 6-11 &9-14#2 UK show in itstime slot for allchildrenQUARTER 1BUSINESSESIconic content spanning genres with global appealSTRATEGY22
Roll-out capability is a key competitive advantageUNIQUE ABILITY TO RAPIDLY ROLL-OUT GLOBALLYTerritoriesFREMANTLEMEDIA LAUNCHES (CUMULATIVE, 2001 TO 2012)MonthsQUARTER 1Beyond roll-out, we also distribute content for partners in 150 ia
Unprecedented capability to exploit TV brands on and off airAMERICAN IDOL CASE STUDYSlot eyWorldLIVE EVENTSTouringGAMINGSocial SlotsSOCIALDOWNLOAD2nd ScreenWebsiteMultiplatform:game in developmentQUARTER 1BUSINESSESFremantleMedia exploits brands and can turn them into franchisesSTRATEGY24
FremantleMedia – Q1 2013KEY FACTS 2013KEY FINANCIALS (in million)REVENUEEBITA Core franchises remain strongo Idols: 13th season confirmedfor US versionX Factor: 3rd season confirmedin US upfront by FoxGot Talent: continued high ratings onITV1311303ROS4.2% Worldwide presencein production, distribution and digitalo Five year partnership with BBC todevelop high quality children’s content13ROS3.3%10o New production label called Newman Street – focuson producing drama for British televisionQ1 2012Q1 2013Q1 2012Q1 2013QUARTER 1BUSINESSESSTRATEGYOPERATIONAL PERFORMANCE IN LINE WITH EXPECTATIONS25
We follow our audience into the digital world.DIGITAL GROWTHONLINENETWORKNON-LINEARTVMOBILEStrong site portfolio Leading TV sites Growing content verticals andventuresLeading catch-up TV offers Among top 3 video sales housesin GER/F/NLOver 100 apps Over 90mn downloads Innovative 2nd screenoffersAmong US YouTube top 20NEXT GENTVREACH61mnMonthly uniqueusers acrossgroup (2012) 15%yoyVIDEO VIEWS6.9bn2.4bn catch-up4.5bn via Youtube 71%yoyONLINE REVENUE 200mnOnline ads,pay/transactionalrevenue 20%yoy3 orig.content and 100 channels globallyQUARTER 1Dynamic digital growth integrated into our businessBUSINESSESSTRATEGY26Note:Source:Online revenues include online advertising, pay and lead generation business; video views include FremantleMedia; all growth metrics based on 2011-12 growthNielsen Media Research
.generating online revenue across multiple new activitiesDIGITAL REVENUEDigital Business SegmentsDIGITAL REVENUE 2012( MN) In-Page Ad Display ads for online/mobile(e.g. banners, skyscrapers)Richmedia ad formats200Online AdvertisingOnline video advertising (e.g pre-rolls)Long-form and short-form, delivered toall platforms/devicesTransactional VOD Paid content/transactional viewingPlatform distribution revenuesDistribution/Production FremantleMedia (e.g. websites, gaming,digital content creation and licensing)Verticals and other Verticals and ventures (e.g. dating)Lead generation (e.g. price comparison)99 20%yoyOther Digital In-Stream Ad 1012012 14%yoy 26%yoyQUARTER 1More than half of digital activities are from non-advertising related businessesBUSINESSESSTRATEGY27Source:Nielsen Media Research
Agendao Full-year highlightso Business Review STRATEGY REVIEW28
Strategic priorities in the three key business segmentsBROADCASTDIGITALCONTENTFamily ofchannelsOnline/mobileportfolioAdapt the businessRe-transmissionfeesOnline videoMaintain scale intraditional businessDigital advertisingBuild presencein new areasGeographicexpansionQUARTER 1BUSINESSESSTRATEGY29
RTL Group needs to maintain reach in broadcast, adapt contentbusiness and expand in online videoPOSITION CHANNEL FAMILIESAGAINST FRAGMENTATIONGROW RETRANSMISSION FEESMaintainReachDiversifyMonetisationOPTIMIZE FTA-FOOTPRINT,DEVELOP PAYBrandsMULTIPLE PLATFORMPRESENCEWidenExploitationGROW PRESENCENEW CONTENTBUSINESSNext GenTVGROW ORIGINALCONTENT ANDNETWORKSBROADCASTMAINTAIN SCALEAND ADAPTBUSINESSSecurequality IPCONTENTDIGITALINCREASE REACHFOCUS ON ONLINEVIDEOQUARTER 1BUSINESSESSTRATEGYExpandNon-linearSTEP UP IN DIGITALADVERTISINGEnhancedviewingGROW 2ND SCREENENGAGEMENT30
RTL GROUP PRESENTATIONBrussels, 21 June 2013The leading European entertainment network
RTL Group: key financial takeawaysREVENUEDelivering consistent top-line growth; diversified revenue streamsCOSTFlexible cost base, conservative programming rights accounting policyEBITAEBITA exceeding 1bn for the last 3 yearsCAPEX. WORKINGCAPITAL, TAXESEfficient working capital and capex managementOPERATING CASHCONVERSION(a)Strong and resilient cash generation and conversion ( 100%)CAPITALSTRUCTURETarget Net Debt / EBITDA of 0.5-1.0x; attractive dividend policy: 50-75% of netincomeQUARTER 1BUSINESSESFINANCIALS(a)Note:Cash conversion calculated as operating pre-tax free cash flow as a percentage of EBITA (continuing and discontinued operations)Financial information in this section is presented using IFRS; Financial information in this section reflects audited consolidated results of RTL Group S.A. for the years ended December 31, 2010, 2011 and 2012, unless noted otherwiseRevenue CAGR for the period 2009-201232
Review of Results 31 March 2013, continuing operations (1/2)In million3 months toMarch 20133 months toMarch 2012Per centchangeREVENUE1,3291,322 0.5REPORTED EBITA207191 8.4Reported EBITA margin (%)15.614.4 1.2ppNet result attributable to RTL Group shareholders133112 18.7UNDERLYING REVENUE1,3291,322 0.5215191 12.5UNDERLYING EBITAQUARTER 1BUSINESSESFINANCIALS33
Review of Results 31 March 2013, continuing operations (2/2)In million3 months toMarch 20133 months toMarch 2012Per centchange207191 8.4Impairment of investment in associates and amortisation and impairment offair value adjustments on acquisitions of subsidiaries and joint ventures andre-measurement of earn-out arrangements11(12)Gain from sale of subsidiaries, joint venturesand other investments and re-measurement to fair value1-Net financial (expense) / income(2)28Income tax expense(61)(62)PROFIT FOR THE PERIOD – CONTINUING OPERATIONS156145LOSS FOR THE PERIOD – DISCONTINUED OPERATIONS-(1)156144Non controlling interests2332RTL Group shareholders133112REPORTED EBITAPROFIT FOR THE PERIOD 8.3Attributable to:QUARTER 1BUSINESSESFINANCIALS 18.734
Cash Flow Statement as of 31 March 20133 months toMarch 20133 months toMarch 2012NET CASH FLOW FROM OPERATING ACTIVITIES327149Add: Income tax paid2581Less: Acquisition of assets, net(12)(35)Equals: Reported free cash flow (FCF)340195Acquisition of subsidiaries and JVs, net of cash acquired(39)1Disposal of subsidiaries and JVs, net of cash-(2)Other financial assets (deposit excluded), net(1)6Net interest received / (paid)12(12)Income tax paid(25)(81)Dividends paid(1,613)(4)CASH GENERATED / (USED)(1,326)103207187164%104%In millionQUARTER 1BUSINESSESFINANCIALSREPORTED EBITA (CONTINUING AND DISCONTINUED)EBITA CONVERSION (FCF/EBITA)35
Efficient capital structure allowing for growth and sustainabledividend policyDIVIDEND PAYMENTS AND PAYOUT RATIO ( MN)264%127%54178977320102011Ordinary dividend ( mn)113%2012132% (a)oExtraordinary dividend paid in 2013789 835oClear commitment to sustainable dividendpolicyoFuture payout ratio of 50 – 75% of adjustedconsolidated net profit2013Extraordinary dividend ( mn)Payout ratioNET DEBT/EBITDA DEVELOPMENT ( MN)(Net cash)/Debt ( MN) 12012PF 2012 postdividendoFull strategic and financial flexibilityo 1.5bn shareholder loan from Bertelsmann atarm’s length to secure financial flexibilityo 500mn 10 year loan at EUR swap 10y 85bps (2.713%)oShort term RCF up to 1.0bn atEURIBOR 60bpsQUARTER 1Target capital structure allows for growth and sustainable dividendsBUSINESSESFINANCIALS36(a):Note:Payout ratio reflects ordinary dividendDividend in year t0 relates to financial year t-1; payout ratio relates to dividend paid in year t0 divided by profit for the year attributable to RTL Group shareholders in year t-1
RTL P7S1 RTL Sat.1 Pro7 RTL II Vox Kabel1 RTL P7S1 SHARE OF NET ADVERTISING MARKET (in %) /-0 -0.8 -0.7 /-0 0.3 -0.1 Percentage point deviation vs FY 2012 Source: GfK, ZAW and RTL Group estimates x 456 461 109 134 ROS 23.9% ROS 29.1% Q1 2012 Q1 2013 Q1 20
