HALF-YEAR RESULTS 2013€¦ · This presentation contains certain forward-looking statements...

The leading European entertainment networkThe leading European entertainment network

HALF-YEAR RESULTS 2013Anke Schäferkordt & Guillaume de Posch, Co-CEOsElmar Heggen, CFO

Luxembourg, 22 August 2013

This presentation is not an offer or solicitation of an offer to buy or sell securities. It is furnished to you solely for your information and use at this meeting. It contains summary information only and does not purport to be comprehensive or complete, and it is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation.No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. By accepting this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of RTL Group S.A. (the "Company”) and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes,” “expects,” “predicts,” “intends,” “projects,” “plans,” “estimates,” “aims,” “foresees,” “anticipates,” “targets,” “will,” “would,” “could” and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are uncertain and subject to risks and uncertainty because they relate to events and depend upon future circumstances that may or may not occur, many of which are beyond the Company’s control. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or any of its subsidiaries (together with the Company, the “Group”) or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in core markets of the members of the Group, changes in the markets in which the Group operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, the potential impact of legal proceedings and actions, the Group’s ability to achieve operational synergies from past or future acquisitions and the materialization of risks relating to past divestments. The Company does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors and it does not accept any responsibility for the future accuracy of the opinions expressed in this presentation. The Company does not assume any obligation to update any information or statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.This presentation is for information purposes only, and does not constitute a prospectus or an offer to sell, exchange or transfer any securities or a solicitation of an offer to purchase, exchange or transfer any securities in or into the United States or in any other jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act of 1933, as amended.

Disclaimer


Agenda

● HALF-YEAR HIGHLIGHTS

o Business Review

o Financial Review

o Business Outlook

3

RTL Group with strong performance in first-half 2013

4

o Successful IPO at Frankfurt Stock Exchange

o Strong interim results demonstrating resilience of diversified portfolio and business model

o Significantly higher EBITA and net profit for the first half of 2013 despite tough economic environment

o Strong cash flow generation leading to interim dividend payment

o Clear focus on executing our growth strategy “broadcast – content – digital”

RTL Group continues to create value

Successful IPO

o Largest EMEA IPO this year

o Largest media IPO since 2004

o SDAX inclusion from 24 June 2013

o Prime standard reporting

51.0

53.0

55.0

57.0

59.0

61.0

63.0

65.0

29 April 2013 14 May 2013 29 May 2013 13 June 2013 28 June 2013

€

RTL Group vs DAX (30 April to 30 June 2013)

RTL Group (Frankfurt) DAX (rebased)

+13.8%

+1.1%

5

REVENUE

€2.8 billion

REPORTED EBITA continuing operations

€552 million

CASH CONVERSION

120%EBITA MARGIN

19.9%NET RESULT

€418 million

SECOND BEST FIRST-HALF EBITA; INTERIM DIVIDEND ANNOUNCED

Half-year highlights 2013

6

INTERIM DIVIDEND

€2.5 per share


Agenda

o Half-year highlights

● BUSINESS REVIEW

o Financial Review

o Business Outlook

7

Note: P7S1 includes N24 up to 2010. 2011 and 2012 exclude Sixx

RECORD FIRST HALF-YEAR FINANCIAL RESULTS

KEY FINANCIALS (in € million)AUDIENCE SHARE 14-59 (in %)

Mediengruppe RTL Deutschland

14.5

9.4 8.5

29.5 29.430.9

30.131.5

32.4 32.631.3 31.2

27.6 26.7 26.4 26.9 27.4 26.9 26.025.2

24.5

2005 2006 2007 2008 2009 2010 2011 2012 HY 2013

5.77.6

5.3

43.843.3

46.4

43.543.9

43.7 44.3 44.0

43.4 43.1

39.2

41.6 41.4 41.4 40.742.3

2006 2007 2008 2009 2010 2011 2012 HY2013

AUDIENCE SHARE – FAMILY OF CHANNELS14-59 (in %)

RTL

P7S1

RTL Pro7Sat.1 VoxRTL II Kabel1

RTL

P7S1

SHARE OF NET ADVERTISING MARKET (in %)

+/-0+0.4-1.1 -1.1 -0.4 +0.3

Percentage point deviation vs HY 2012Source: GfK, ZAW and RTL Group estimates

x

933 944

280 306

ROS

30.0%

ROS

32.4%

HY 2012 HY 2013HY 2012 HY 2013

REVENUE EBITA

8

711 698

SOLID PERFORMANCE IN DIFFICULT MARKET CONDITIONS

15.8

25.2

10.04.4

44.6

M6 TF1 France 2 France 3 Others

NET TV ADVERTISING MARKET DEVELOPMENT

AUDIENCE SHARE – FAMILY OF CHANNELS

20.832.5

18.5

Groupe M6 TF1 Group France Télévisions

AUDIENCE SHARE – MAIN CHANNELSQ1 2013 VS Q1 2012 (in %)

-6.0

-2.3

-8.8

126 127

KEY FINANCIALS (in € million)

M6 TF1Market

-0.6 -2.4+0.5

ROS

18.2%

ROS

17.7%

HOUSEWIVES <50 ALL DAY (in %)

HOUSEWIVES <50 ALL DAY (in %)

-1.5 -1.0 +2.9-0.1 -0.3

Percentage point deviation vs HY 2012

Source: Médiamétrie, housewives under 50, RTL Group estimatesGroupe M6: M6, W9 and 6ter; TF1 Group: TF1, TMC, NT1 and HD1; France TV: Fr2 – Fr5

x

Percentage point deviation vs HY 2012x M6 and TF1: based on published information. Market : RTL Group estimates

HY 2012 HY 2013HY 2012 HY 2013

REVENUE EBITA

Groupe M6

9

IMPROVED OPERATIONAL PERFORMANCE

671

FremantleMedia

KEY FACTS 2013 KEY FINANCIALS (in € million)

ROS

5.6%

ROS

7.0%

10

REVENUE EBITA

HY 2012 HY 2013 HY 2012 HY 2013

671720

47

● Core franchises remain strongo Idols: 12th season peak audience

most watched entertainment show so far this year

o America’s Got Talent: launch show up7 per cent on last season (7)

o Family Feud: best performance inover 20 years

● Digitalo 24.3 million downloads across

mobile and Facebook for Ludia’ssocial games

o Youtube channels attract 2.9 billion video views, up 86% year on year 40

OUT-PERFORMING IN A DIFFICULT MARKET

HY AUDIENCE SHARE – FAMILY OF CHANNELS KEY FINANCIALS (in € million)

HY AUDIENCE SHARE: 20-49, PRIMETIME (in %)

18.9 14.58.5

5.2 5.3

RTL 4 NED 1 SBS 6 RTL 5 Net 5

+/- 0 -0.5-3.7

32.4

20.326.5

RTL Nederland SBS Ned 1-3

+/- 0 -3.4+0.3

-0.8 +1.0

HY 2013 vs HY 2012 (in %)


-5.6

-1.1

Market RTL Nederland

Percentage point deviation vs HY 2012x

Percentage point deviation vs HY 2012x Source: RTL Group estimates (spot and non-spot)

ROS

18.3%

ROS

17.8%

REVENUE EBITA

HY 2012 HY 2013 HY 2012 HY 2013

20-49, PRIMETIME (in %)

RTL Nederland

208 214

38 38

11

SOLID RESULTS DUE TO MANAGEMENT OF COST BASE


AUDIENCE SHARE – FAMILY OF CHANNELS

RTL Belgium

26.6

14.25.0 6.2 4.1

RTL-TVI La Une La Deux Club RTL Plug RTL

36.9

19.2

4.8

23.2

RTL Belgium Pubcaster AB 3 FrenchChannels

AUDIENCE SHARE: SHP 18-54, PRIMETIME (in %)

KEY FINANCIALS (in € million)

-0.2 +0.5-0.2 -1.6

-7.5 -7.5-9.8

Market RTL Belgium RTBF

HY 2013 VS HY 2012 (in %)

-1.0 -1.2+1.0 +0.5

108

25 25

105ROS

23.1%

ROS

23.8%

Percentage point deviation vs HY 2012

Source: Audimétrie

x

Percentage point deviation vs HY 2012x

12

REVENUE EBITA

HY 2012 HY 2013 HY 2012 HY2013

Source: RTL Group estimates

+0.3

SHOPPERS 18-54, PRIMETIME (in %)

FLAGSHIP CHANNEL GAINING AUDIENCE SHARE

12.1

● Audience share of RTL family well ahead of commercial rivals

● Advertising market estimated to be down 1.0 per cent with RTL’s share at 25.2 per cent

RTL Radio (France)

KEY FACTS 2013 KEY FINANCIALS (in € million)

+0.6 +0.7 +0.3 -0.1 -0.2 -1.2 +0.5

16.3 +1.8p -0.7p

AVERAGE AUDIENCE SHARE 2013 – 13+, 5-24H, MON – FRI (in %), APRIL-JUNE

RTL Fun Radio

RTL2 NRJ Nostalgie ChérieFM

Rire &Chansons

Eur. 1 Virgin RFM FranceInter

FranceBleu

FranceInfo

RTL STATIONS NRJ GROUP LAGARDÈRE PUBCASTER

18.5 -0.9p+0.2p 19.5

+0.4

12.0

3.5 3.0

7.6

4.2 2.91.6

7.3

1.9 2.9

9.36.8

3.4

Percentage point deviation vs April-June 2012x

13

13 13

ROS

14.6%

ROS

15.1%

HY 2012 HY2013HY 2012 HY2013

REVENUE EBITA

8986

-0.3 +0.1 +0.2 -0.2-0.4

IMPROVED PROFITABILITY IN ALL MARKETS

-403 5

Others: Hungary, Croatia, Spain

KEY FINANCIALS, Atresmedia (in € million)

14

KEY FINANCIALS, RTL Klub (in € million) KEY FINANCIALS, RTL Hrvatska (in € million)

100% VIEW

● TV advertising markets in HY 2013:Hungary: –3.0%; Croatia –4.0%;Spain –12.8%

● Audience shares of family of channels:Hungary 37.2%; Croatia 28.9%; Spain 30.5%

KEY FACTS 2013

385 423

34 40

ROS

8.8%

ROS

9.5%

HY 2012 HY 2013HY 2012 HY 2013

REVENUE EBITDA

15 17

HY 2012 HY 2013HY 2012 HY 2013

REVENUE EBITA

HY 2012 HY 2013HY 2012 HY 2013

REVENUE EBITA

45 45ROS

6.7%

ROS

11.1%

Enter high

growth

markets

Strengthen

family of

channels

Secure

attractive

content

Key developments 2013 : delivering on our strategy

Broadcast

+X %JULY

RTL Television secures rights to German national team qualifiers for Euro 2016 and World Cup 2018

AUGUST

RTL Group announces launch of two new basic pay channels in Asia in a partnership with CBS

JULY

RTL Hrvatska awarded licence for new kids channel in Croatia

15SELECTED INVESTMENTS IN BROADCAST 15

Growing

across all

digital

platforms

Strengthen

VOD offer

Digital

expansion

INVESTMENTS BOOST PRESENCE IN DIGITAL

Key developments 2013 : delivering on our strategy

Digital

+X %

JUNE

Acquisition of majority stake in Canadian company BBTV, Youtube’s 5th

largest multi-channel network (MCN)

AUGUST

RTL Group acquires a 65% stake in “TEG”, the number 1Pay Video-On-Demand (Pay VOD) company in the Netherlands

RTL Group’s video services and websites attracted 4.8 billion online video views in the first six months of 2013 – up 35 per cent. Online revenue up 20 per cent to €108 million

16


Agenda


o Business Review

● FINANCIAL REVIEW

o Business Outlook

17

Review of Results 30 June 2013, continuing operations (1/2)

In € millionHalf-year to

June 2013

Half-year to

June 2012

Per cent

change

REVENUE 2,779 2,815 -1.3

REPORTED EBITA 552 506 +9.1

Reported EBITA margin (%) 19.9 18.0 +1.9pp

Net result attributable to RTL Group shareholders 418 274 +52.6

UNDERLYING REVENUE 2,780 2,815 -1.2

UNDERLYING EBITA 565 506 +11.7

18

Half-year to

June 2013

Half-year to

June 2012

Per cent

change

REPORTED EBITA 552 506 +9.1

Impairment of investment in associates and amortisationand impairment of fair value adjustments on acquisitions 67 (15)

Gain / (Loss) from sale of subsidiaries, joint venturesand other investments

1 (1)

Net financial income / (expense ) 5 (11)

Income tax expense (158) (147)

PROFIT FOR THE PERIOD – CONTINUING OPERATIONS 467 332 +40.7

LOSS FOR THE PERIOD – DISCONTINUED OPERATIONS - (1)

PROFIT FOR THE PERIOD 467 331

Attributable to:

Non controlling interests 49 57

RTL Group shareholders 418 274 +52.6

In € million

19

Review of Results 30 June 2013, continuing operations (2/2)

Cash Flow Statement as of 30 June 2013

In € million Half-year to

June 2013

Half-year to

June 2012

NET CASH FLOW FROM OPERATING ACTIVITIES 581 385

Add: Income tax paid 132 225

Less: Acquisition of assets, net (53) (87)

Equals: Reported free cash flow (FCF) 660 523

Acquisition of subsidiaries and JVs, net of cash acquired (66) 1

Disposal of subsidiaries and JVs, net of cash (1) (2)

Other financial assets (deposit excluded), net (4) 3

Net interest received / (paid) 20 (10)

Transaction with non controlling interests 1 (5)

Income tax paid (132) (225)

Dividends paid (1,746) (869)

CASH GENERATED / (USED) (1,268) (584)

REPORTED EBITA (CONTINUING AND DISCONTINUED) 552 503

EBITA CONVERSION (FCF/EBITA) 120% 104%

20

Net debt & EBITDA as of 30 June 2013

In € million Half-year to

June 2013

Full year to

December 2012

Gross financial debt (540) (29)

Cash and cash equivalents 313 650

Deposit with majority shareholder - 426

Other 3 4

Net (debt) / cash position (224) 1,051

EBITDA 635 1,257

21

o Extraordinary interim dividend of €2.5 per share or €387 million to be paid 5 September


Agenda


o Business Review

o Financial Review

● BUSINESS OUTLOOK

22

Outlook

23

The tough economic environment is not expected to easeover the remainder of the year

Strong interim results with all profit indicators up demonstrateresilience of a diversified and balanced portfolio

While visibility on the 4th quarter is limited, RTL Group expects a similar level of EBITA as in 2012 assuming no

unexpected market deterioration


HALF-YEAR RESULTS 2013Anke Schäferkordt & Guillaume de Posch, Co-CEOsElmar Heggen, CFO

Luxembourg, 22 August 2013

The leading European entertainment network

Appendix

€, m Q2 2013 Q2 2012

Revenue 1,450 1,493

EBITA 345 315

EBITA margin 23.8% 21.1%

EBIT 401 311

Interest income 3 3

Interest expense (6) (7)

Financial results other than interest 10 (35)

Profit before taxes 408 272

Income tax expense (97) (85)

Profit for the period, continuing operations 311 187

Discontinued operations - -

Profit for the period 311 187

EPS 1.86 1.07

Summary consolidated income statement for the 3 months to 30 June

26

€, m Q1 2013 Q2 2013 HY 2013 Q1 2012 Q2 2012 HY 2012


461 483 944 456 477 933

Groupe M6 349 349 698 355 356 711

Fremantle Media 303 368 671 311 409 720

RTL Nederland 92 122 214 90 118 208

RTL Belgium 51 54 105 54 54 108

French Radio 39 47 86 41 48 89

Other segments 82 78 160 64 79 143

Of which: Hungary 20 25 45 19 26 45

Croatia 7 10 17 6 9 15

German Radio 12 13 25 12 13 25

UFA Sports 20 3 23 1 6 7

Eliminations (48) (51) (99) (49) (48) (97)

Total revenue 1,329 1,450 2,779 1,322 1,493 2,815

Revenue by Business Unit, continuing operations

27

€, m Q1 2013 Q2 2013 HY 2013 Q1 2012 Q2 2012 HY 2012


134 172 306 109 171 280

Groupe M6 60 67 127 63 63 126

Fremantle Media 10 37 47 13 27 40

RTL Nederland 4 34 38 5 33 38

RTL Belgium 12 13 25 12 13 25

French Radio 2 11 13 3 10 13

Other segments (15) 11 (4) (14) (2) (16)

Of which: Hungary (1) 6 5 (2) 5 3

Croatia (2) 2 - (4) - (4)

German Radio 2 4 6 3 3 6

UFA Sports - - - (2) 1 (1)

Atresmedia (1) 7 6 2 2 4

Total EBITA 207 345 552 191 315 506

EBITA by Business Unit, continuing operations

28


IR calendar and contacts

29

IR Calendar:

1 October 2013 : Analysts and Investor Day; Cologne

6 November 2013 : Quarter 3 IMS

6 March 2014 : Full year 2013 results announcement

IR Contact details:Andrew Buckhurst : 00 352 2486 5074 : [email protected] Klose : 00 352 2486 5075 : [email protected]

HALF-YEAR RESULTS 2013€¦ · This presentation contains certain forward-looking statements...

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