entertain. inform. engage. · operating cost base 5,623 5,464 +2.9 adjusted ebita 1,156 1,171 (1.3)...

Entertain. Inform. Engage.

Entertain. Inform. Engage.

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RTL Group at a glance

A LEADER ACROSS BROADCAST, CONTENT AND DIGITAL

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RTL Group at a glance

MISSION STATEMENT

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RTL Group at a glance

EUROPE’S LEADING FREE-TO-AIR BROADCASTER…

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RTL Group at a glance

…WITH WIDE REACH AND STRONG CONTENT PRODUCTION…

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RTL Group at a glance

…AND ONE OF THE LEADERS IN DIGITAL VIDEO

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RTL Group at a glance

SHAREHOLDING STRUCTURE

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RTL Group at a glance

SHAREHOLDING STRUCTURE

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RTL Group at a glance

CORPORATE GOVERNANCE (1/2)

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RTL Group at a glance

CORPORATE GOVERNANCE (2/2)

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RTL Group at a glance

STRONG MANAGEMENT TEAM

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RTL Group at a glance

GROUP MANAGEMENT COMMITTEE

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RTL Group at a glance

RTL GROUP’S REPORTING SEGMENTS

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Corporate Responsibility

OUR ROLE IN SOCIETY

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Corporate Responsibility

OUR MATERIAL TOPICS

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Corporate Responsibility

OUR MEASURES IN CORPORATE RESPONSIBILITY

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RTL Group at a glance

OUR AMBITIONS

Highlights

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PROGRESS ACROSS ALL THREE STRATEGIC PRIORITIES

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Highlights

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REVENUE AT ALL-TIME HIGH, PROFIT UP 10 PER CENT

+2.2%€6,651m +3.2%

-0.6ppMargin: 17.4%-1.3%

+10.1%€864m

Notes: 1. Adjusted for scope changes, the w ind-down of StyleHaul and at constant exchange rates, 2. Adjusted for one-off effects related to RTL Group’s Corporate Centre restructuring

€1,156m

organic1

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Financials 2019

REVENUE BRIDGE

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Financials 2019

HIGHLY DIVERSIFIED REVENUE MIX

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Financials 2019

STRONG FINANCIAL KPIs

Financials 2019

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HIGH MARGINS, LOWER DEBT

In € millionFull year to

December 2019Full year to

December 2018Per centchange

Revenue 6,651 6,505 +2.2Underlying revenue 6,518 6,317 +3.2Operating cost base 5,623 5,464 +2.9Adjusted EBITA 1,156 1,171 (1.3)Adjusted EBITA margin (%) 17.4 18.0 (0.6)ppEBITA 1,139 1,171 (2.7)Net debt (384) (470) –Net debt EBITDA ratio at end of year 0.27 0.34 –

Financials 2019

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NET PROFIT UP STRONGLY

In € millionFull year to

December 2019Full year to

December 2018Per centchange

Reported EBITA 1,139 1,171 (2.7)

Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree and earn-out arrangements 87 27

Impairment of goodwill of subsidiaries, investments accounted for using the equity method, amortisation and impairment of fair value adjustments on acquisitions of subsidiaries

(65) (122)

Net financial expense (5) (13)

Income tax expense (292) (278)

Profit for the year 864 785 +10.1Profit for the year attributable to RTL GROUP SHAREHOLDERS 754 668 +12.9

Financials 2019

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HIGH LEVEL OF CASH CONVERSION

In € millionFull year to

December 2019Full year to

December 2018Net cash flow from operating activities 1,085 873Add: Income tax paid 334 354

Less: Acquisition of assets, net (220) (178)

Equals: Reported free cash flow (FCF) 1,199 1,049Acquisition of subsidiaries, net of cash acquired (235) (18)

Acquisition and disposal of other investments and financial assets, proceeds from the sale of investments accounted for using the equity method 123 117

Net interest paid (23) (12)

Transactions with non-controlling interests, treasury shares & deposit with shareholder (69) (25)

Income tax paid (334) (354)

Dividends paid (538) (686)

Cash generated 123 71

EBITA 1,139 1,171

CASH CONVERSION (FCF/EBITA) 105% 90%

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Financials 2019

SIGNIFICANT VALUE ADDED

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Financials 2019

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

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HOW THE INDUSTRY IS CHANGING WITH FRAGMENTATION

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TOTAL VIDEO MARKET IS GROWING, DRIVEN BY DIGITAL VIDEO

RTL GROUP’S BUSINESS MODEL

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THE CONTENT PRODUCTION VALUE CHAIN

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RTL GROUP AIMS TO BE PRESENT ALONG THE AD-TECH VALUE CHAIN

Mediengruppe RTL Deutschland

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HIGHER AUDIENCE AND NET TV ADVERTISING MARKET SHARES

P7S1

Others

MARKET LEADER

ARD

ZDF

28.1%3

ARD-III

10.7%

6.4%

11.0%

25.0%8.0%

7.8%

7.4%

23.7%

Notes: 1. Including RTL Radio Deutschland and Smartclip, 2. Adjusted for scope changes, 3. Incl. RTL Zw ei, Super RTL, incl. pay-TV, 4. End of December 2019 vs. end of December 2018

HIGHLIGHTS

FY 2018 FY 2019

RevenueEBITA

2,304 2,262

723 663

Key financials¹In € million

Family of channels

14 to 59, FY 2019

-1.8%

MARKET LEADER

+0.1% organic1

Groupe M6

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HIGHER AUDIENCE AND NET TV ADVERTISING MARKET SHARES

Notes: 1. Gulli consolidated as of September 2019, 2. Adjusted for scope changes

Family of channelsWomen < 50 responsiblefor purchases, FY 2019

Groupe TF1

Others

France 3

France 2

22.8%

14.7%

8.1%

32.3%8.6%

3.7%

32.6%

HIGHLIGHTS

FY 2018 FY 2019

RevenueEBITA

1,483 1,456

275 287

-1.8%

Key financials¹In € million

Family of channels

STRONG #2

-0.2%organic2

RTL Nederland

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VIDEOLAND CONTINUES TO GROW RAPIDLY

FY 2018 FY 2019

RevenueEBITA

Adults 25 to 54, Prime time,FY 2019

Talpa TV

Others

MARKET LEADER

Pubcaster

29.8%

504 496

71 54

16.9%

12.9%

23.3%

28.1%

18.8%

Notes: 1. Adjusted for scope changes, 2. End of December 2019 vs. end of December 2018

HIGHLIGHTSKey financials

In € million

Family of channels

-1.1%organic1

MARKET LEADER

-1.6%

Fremantle

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GROWTH FUELLED BY DRAMA PERFORMANCE

FY 2019FY 2018

Rev

enue

FY 2019FY 2018EB

ITA

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142

1,793

1,592 37164

FX Organic growth

+10.3%

HIGHLIGHTS

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Drama Drama

Drama % of total revenue19% 23%

+ 12.6%

+ 11.8%

Key financials

In € million

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21 3

E N A B L E R

Creativity &

EntrepreneurshipRegulationPeople

Communications &

Marketing

NEW STRATEGIC FRAMEWORK

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STRENGTHEN MARKET POSITIONS INVEST IN PREMIUM CONTENT

in every market1

#1 or #2content investment p.a.

€3.5bn(€1.5bn Fremantle)

Note: 1. DE, FR, NL, ESP, BE, HR, HU, LU In terms of audience share in respective target groups

1 STRATEGIC PRIORITIES – CORE

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TARGETS 2025¹

Note: 1. Refers to TV Now and Videoland combined

BUILD NATIONAL STREAMING CHAMPIONS

2 STRATEGIC PRIORITIES – GROWTH

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INVEST IN TECHNOLOGY AND DATA

Smartclip: Create advertising technology platform, open to partners

Bedrock: Create streaming technology platform, open to partners

European NetID: Expand open log-in standard to new partners

LeadingEuropean advertising technology platform

LeadingEuropean streaming technology platform

STRATEGIC PRIORITIES – GROWTH

TARGETS

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EXPAND GLOBAL CONTENT BUSINESS BUILD LEADING DIGITAL TALENT NETWORK AND CONTENT STUDIO

34bn23%

Notes: 1. Including Divimove and United Screens

STRATEGIC PRIORITIES – GROWTH2

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EXPAND ADVERTISING SALES LEVERAGE CONTENT EXPERTISE

€2.0bn99%

STRATEGIC PRIORITIES – ALLIANCES & PARTNERSHIPS3

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SHARE PRICE PERFORMANCE IN 2019

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TOTAL SHAREHOLDER RETURN (TSR)

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ANALYSTS’ VIEW

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RTL GROUP’S EQUITY STORY

RTL Group

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OUTLOOK FOR 2020

RTL Group withdraws outlook for 2020 and dividend proposal for 2019 due to the coronavirus outbreak

Luxembourg, 2 April 2020 – RTL Group continues to monitor the rapid worldwide spread of the coronavirus disease (Covid-19) closely, placing the highest priority on the health of its employees and on protecting its businesses.

RTL Group’s TV channels, radio stations, streaming services and websites currently register significantly higher reach and usage as they provide information and entertainment to millions of people who face unprecedented disruptions to their daily lives.

Given that RTL Group’s businesses are part of a country’s critical infrastructure, the Group has activated business continuity plans across its footprint. These steps have been taken to ensure that the Group’s TV channels and radio stations continue their activities and include the implementation of counter measures to reduce costs and preserve liquidity. RTL Group has low levels of debt and significant, unused and committed Bertelsmann credit facilities with no maturities before 2023.

Given the current economic uncertainty, the Group’s Board of Directors has decided today to withdraw the previous outlook (da ted 13 March 2020) which did not reflect the coronavirus outbreak. Global economic development and prospects have significantly deteriorated since mid-March, when RTL Group gave its outlook statement. The Group is currently not in a position to provide a new outlook for the full year 2020. While Q1/2020 will be broadly in line with expectations, cancellations of advertising bookings and postponements of productions will negatively impact the Group’s results in the coming months.

In these unprecedented circumstances, the preservation of liquidity becomes an essential precaution to safeguard the Group’s present operations and future prospects. RTL Group’s Board of Directors has therefore decided to withdraw its earlier proposal of a €4.00 per share dividend in respect of the fiscal year 2019. No dividend will now be proposed to the Annual Meeting of Shareholders on 30 June 2020.

RTL Group’s three-priority strategy – core, growth, alliances & partnerships – remains unchanged. RTL Group maintains its mid-term targets for the streaming services TV Now in Germany and Videoland in the Netherlands, as communicated on 13 March 2020: to grow its total number of paying subscribers to between 5 and 7 million, to grow streaming revenue to at least €500 million and to break even by 2025.

FINANCIAL CALENDAR 2020

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CONTACT

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DISCLAIMER