Metropole Television SA · EURONEXT:MMT
Metropole Television SA — Investor Day (December 2019)
71 slides from Metropole Television SA's investor day presentation, Dec 16, 2019
Slide 1: TV is not dead
Slide 2: Introduction
INTRODUCTION Nicolas de Tavernost, Chairman of the Executive Board
Slide 3: True Figures
TRUE FIGURES Thomas Valentin, Vice-Chairman of the Executive Board
Slide 4: Despite double-digit growth in SVoD penetration in France
DESPITE DOUBLE-DIGIT GROWTH IN SVOD PENETRATION IN FRANCE… Number of French people aged 15+ who have used SVoD during the year Estimate based on 3 different sources 33% 24% 18% 9 12 17 to to to 10M° 13M° 18M° 2017 2018 2019 Sources: Médiamétrie / Médiamat – Panel analysis – Médiamat / Global Vidéo –
Slide 5: TV reach still significantly higher than SVoD: 12 times higher
… TV REACH STILL REMAINS SIGNIFICANTLY HIGHER THAN THAT OF SVOD: 12 TIMES HIGHER Daily coverage of TV on TV screen vs SVoD across all screens 12x TV SVoD television 37x 36,5M° 4x 12x 20,7M° 3,0M° 8,7M° 7,0M° 1,7M° 0,7M° 0,6M° 15+ 15 - 34 35 - 49 50+ Sources: Médiamétrie / Médiamat – Daily coverage o
Slide 6: TV not currently measured in its entirety, but will be in 2020
(ALL THE MORE SO SINCE TV IS NOT CURRENTLY MEASURED IN ITS ENTIRETY BUT WILL SOON BE IN 2020) Audimètre Individuel Porté (individual ported audience measurement) A portion of the TV audience is not currently taken into account by Médiamétrie. From 2020, media measurement will be enhanced by: +6% - o
Slide 7: SVoD's coverage is less than Canal+ and virtually all free-to-air channels
BY REACHING 3M° FRENCH PEOPLE EACH DAY, SVOD’S COVERAGE IS LESS THAN CANAL+ AND VIRTUALLY ALL FREE-TO-AIR CHANNELS Daily reach of TV among over 15s on TV screen vs SVoD across all screens 21,9 19,6 16,1 15,7 10,2 8,9 8,4 7,8 7,7 7,2 5,6 5,5 5,4 4,8 4,8 4,8 4,8 4,8 4,6 4,1 3,9 3,8 3,7 3,5 3,0 20.3M°
Slide 8: Catch-up via TV screen more popular than SVoD
CATCH-UP VIA TV SCREEN MORE POPULAR WITH FRENCH PEOPLE THAN SVOD Daily reach of TV among over 15s for catch-up ipTV vs SVoD across all screens ipTV SVoD 3,7M° 3,0M° … Sources : Médiamétrie / Médiamat – Daily reach of catch up via TV screen– NPA Conseil / Harris Interactive – Number of daily SVoD use
Slide 9: At prime time, TV reaches more than one third of the population
AT PRIME TIME, TELEVISION CAN REACH MORE THAN ONE THIRD OF THE FRENCH POPULATION AT THE SAME TIME ─ SVOD, 10 TIMES LESS Average 15+ TV audience between 9pm and 10.30pm on TV screen vs SVoD across all screens television 22.2M° 2M° Sources : Médiamétrie / Médiamat – Average prime time audience (9pm/10
Slide 10: SVoD usage mostly benefiting from new and original series
SVOD USAGE IS MOSTLY BENEFITING FROM NEW AND ORIGINAL SERIES Weighting of the top 3 contributors to SVoD in terms of viewing time 3,3% 2,5% 2,1% Original (since s4) Original (since s3) US+24 Sources : NPA Conseil / Harris Interactive Weeks 1 to 47 – 2019
Slide 11: Despite strong SVoD growth, the balance of power is clear
1/ Despite strong SVOD growth in France, the balance of power is clear: TV reaches 12 times as many French people every day than SVoD Even among young people, TV remains much more popular than SVoD Even if SVoD continues to expand, it will peak at a lower level than TV, which rema and high quali
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Slide 13: The effectiveness & R.O.I. of TV advertising
The effectiveness & R.O.I. of TV advertising Novembre 2019
Slide 14: #ROITV
Me AOUULUY #ROITV
Slide 15: Determine the contribution of media to sales and ROI
Determine the contribution of media to sales and ROI ~S ee Analyse the performance of the different value-contributing factors for campaigns covering five of the main television advertising sectors. Isolate among the different levers activated, the total contribution of media to sales. Then, determi
Slide 16: Advertising sectors studied
#ROITV Advertising sectors studied i “a 2 & Food Hygiene & Beauty Automotive Pure Players Banking & Insurance econometric models analysing the factors contributing to value over 3 years contributing agencies e q q | dentsu 7 Q annalect uhh pour — Ww PON" aan group Omnicom Pul BLICIS data2decisions M
Slide 17: Study methodology
#ROITV Pre-study - Definition of the indicators used BearingPoint. 1m-IMZ - Homogeneity of the definitions and the scope Data collection - Net investments devoted to each lever activated + Sales/subscriptions in turnover N P| Modelling csa nN” group™. QO) annalect i ATA CONSULTING. eo) pour « Produc
Slide 18: Quality of the results
Quality of the results Represent and explain sales to calculate KPIs by guaranteeing the quality of the models Adjustment coefficient for the 15 models studied 85% 89% Food Automotive #ROITV Lefficacité & le R.O.|. de la pub TV R?des 5 secteurs ¢ = iva 0, Q fy (J Hygiene & Beauty Banking &Insurance
Slide 19: What was studied
What was studied What was deduced from it om 85 waves of communication Corresponding net media investments for each Lefficacité & le R.O.1. dela pub TV © Basic sales © Incrementalsales contributions from the media © ROI by media © Carryover effect and long-term effects © Synergies TV x other media
Slide 20: Two main criteria to observe
Two main criteria to observe jms + The contribution to sales which should always be compared with the share of investment ROI or what return on investment (sales turnover or subscriptions] for €1 invested These two criteria must always be observed simultaneously #ROITV Lefficacité & le R.O.|. dela p
Slide 21: Let's start from contribution
ES = Let's start from CONTRIBUTION the contributions Reece made by two different media | Média > INVESTISSEMENTS For small investments: Media | > Media 2 Then quickly: Media 2 >> Media| Which explains the need to compare ROI and contribution #ROITV Lefficacité & le R.O.1. dela pub TV 2019
Slide 22: Contribution and ROI curves
VENTES = CONTRIBUTION @ Contribution @R.O.1. R.O.L. INVESTISSEMENTS Small contribution that saturates quickly while investments continue to progress. Large ROl initially which deteriorates quickly when the investments increase. © This is the principle of diminishing returns. VENTES = CONTRIBUTION @
Slide 23: ROI, contribution and laws of diminishing returns
ROI CONTRIBUTION and laws of diminishing returns (= ROlis nota constant, regardless of the investment. The hierarchy of ROI is not an adequate indicator of comparative return of media if it is used on its own. It must be compared with the contributions that the media make. Some levers with a low con
Slide 24: ROI and synergies between the levers
ROl and synergies between the levers One ROI may hide another one... Synergy When the combined effect of a set of levers is greater than the sum of the isolated effects. In this case, certain media benefit from the priming effect produced by others thanks to the effects of synergy. Therefore, a shar
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Slide 26: Contribution
+ MONTAG SHS #ROITV Lefficacité & le R.O.|. de la pub TV
Slide 27: The contribution of media to sales
The contribution of media to sales Other explanatory med BStors \% oils | Sguph Media contribute oS onaverage to 16% of sales Pronger or subscriptions among ° the 20 factors studied Baseline 61% #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 28: TV very involved but over-contributor
TV very involved but over-contributor Among the other media Lo! 4 nA ) i ie ies Ww Oe Including Sponsorship & Catch-Up TW Radio Display % &. % rs a VS: investments Cinema Share of investment Contribution dedicated adverts #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 29: Digital levers and TV over-perform
The aggregate of digital levers and TV over-perform 70 60 Contribution to sales 20 Advertising investment =) TV— 62% [1v+ Sponsorship + Catch-Up} * Digital levers — 19% © other media—19% TV Digital levers Other media #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 30: Contribution to sales
70 60 Contribution to sales #ROITV Disparate contribution of digital levers Toe ¢ Advertising investment TV Affiliation + Display Facebook VOL Lefficacité & le R.O.|. dela pub TV 2019 ®) TV— 62% [1V+ Sponsorship + Catch-Up] * Affiliation + Display — 11% * Facebook — 3% * VOL—5%
Slide 31: TV, the best contributor to sales
#ROITV TV, the best contributor to sales TV and the aggregate of digital levers show very significant contributions greater than their share of investment Lefficacité & le R.O.|. dela pub TV 2019
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Slide 33: #ROITV
#ROITV dela pub TV 2019
Slide 34: ROI: What is it?
ROI: Whatis it? ROI media Value created, or turnover in€ for €1 media invested Calculation method Contribution in media value to sales + media investment. #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 35: R.O.I. by media
R.O.I. 20 30 40 Investissements — % 50 i contrib. ventes TVs ROI @ wv —49 @ Catch-Up —76 © Radio* —49 O Display* —24 @ Cinema —97 VOL* —3,3 *) Affiliation + Display* —3,9 Facebook — 6,6 @Size of circles in proportion to the contribution to sales *Contributions > 5% 60 70
Slide 36: Only a combined ROI / contribution vision is relevant
Only acombined ROI / contribution vision is relevant ROI cannot be an indicator observed in an isolated manner. Itonly has meaning if you take account of the share of dedicated advertising investment and the contribution to sales generated, notto mention the effects of synergies not deducted from RO
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Slide 38: #ROITV
#ROITV
Slide 39: The carryover effect on sales differs according to the levers
The carryover effect on sales differs significantly according to the levers Phenomenon of the continued effect of advertising over time after exposure to the message. Related to the notion of 4 life which is the time expressed innumber of days, when the campaign keeps half of its memory or business
Slide 40: After how many days is half of the impact maintained?
After how many days after the end of a campaign, is half of its impact on sales maintained? #ROITV Lefficacité & le R.O.1. dela pub TV
Slide 41: Television the leader of the carryover effect
Television very largely the leader of the carryover effect... TV Radio Display Digital levers Press Carryover effect ri) expressed indays #ROITV Lefficacité & le R.O.I. de la pub TV [snP(V]
Slide 42: Whatever the versions of it
..Whatever the versions of it TV Catch-Up IV ee | TV Sponsorship aa: e Carryover effect expressed in days #ROITV Lefficacité & le RO. de la pub TV 2019 [snP(V]
Slide 43: High carryover effect of mass media for Pure-Players
High carryover effect of mass media for Pure-Players \ ty Ve Pure-Players Tv Radio (og N 3) 22) Display Investissement > 2% Carryover effect ri) expressed indays #ROITV Lefficacité & le R.O. de la pub TV 2019 [sve]
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Slide 45: Long-term effects
LDN TERM berth #ROITV
Slide 46: The audiovisual leader for long-term effects
The audiovisual leader for long-term effects Le) Index of the medium to long-term effect of each media for the contribution in value, with 100 short-term base © Allmedia TV Cinema Radio Digital levers Press #ROITV Lefficacité & le R.O.|. dela pub TV
Slide 47: TV doubles its effects in the long-term
Effective in the short-term, TV doubles its effects in the long-term TV Traditional TV Sponsorship TV Catch-Up #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 48: Video Online, Social, Affiliation + Display
Md Video Online Social Affiliation + Display #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 49: Contribution, ROI, long-term effects: over-performance of TV
Contribution — ROI — Long-term effects: over-performance of TV % Comparison fb 2 iv . 10 [-) , of media ; contrib. To sales TVs Sponsorship according to their 9 Catch-Up ie 8 VOL their long-term effects and their 7 Social contribution 6 ®) Affiliation + Display to sales 3 ; O cinema - 4 ° @ Radio [
Slide 50: Long-term effects for consumer goods
The long-term effects are particularly spectacular for consumer goods wt x @ SAY TV dl oe Food Hygiene & Beauty #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 51: Even for Pure-Players, TV is effective in the long-term
Even for Pure-Players, TV is effective in the long-term [canny q . pmy =z Pure-Players @ TV booster of drive-to-web campaigns TV Digital levers #ROITV Lefficacité & le R.O.|. dela pub TV 2019
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Slide 53: #ROITV
#ROITV
Slide 54: TV activation increases effectiveness of other media
Activation by TV significantly increases the effectiveness of other media TV +lother media % Presse Leviers digitaux aA aA A = <>) = ( COAAN ) n q\ effectiveness on sales Affichage Cinéma Radio #ROITV Lefficacité & le R.O.|. dela pub TV 2019
Slide 55: Up to 68% more activation thanks to TV synergy
From 5 to 68% more activation thanks to the synergy of TV +68% 70 - _ i) 50 - 433% no +38% The effectiveness of a +19% ~~ +27% Search campaign i mia 114% 46% 45% combined with TV == == increases by 33% 100 — Inversely, it might be 7 + thought that there is no 50 positive synergy from Search to TV. 3
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Slide 57: TV, the leading media for sales effectiveness criteria
TV, the leading media for sales effectiveness criteria % a for€linvested TV activates the effectiveness of sales generated by the other media by +25% on average & Contribution to sales #ROITV Lefficacité & le R.O.|. de la pub TV
Slide 58: Study partners
Inn YO BearingPoint. m-mz 9 ry re) annalect a pour group” pour Omnicom MediaGroup li PUBLICIS MEDIA
Slide 59: SNPTV
SNP. |TV SYNDICAT NATIONAL DELAPUBLICITE TELEVISEE
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Slide 61: David Larramendy, Member of the Executive Board
David Larramendy, Membre du Directoire
Slide 62: Our trust in the TV medium is based on pillars
Our trust in the TV medium is based on 2 pillars: ATTRACTIVENESS 1 CAPACITY TO INCREASE PRICES
Slide 63: The TV market remains a priority for advertisers
The TV market remains a priority for advertisers NET 2018 MEDIA REVENUE (€ MILLIONS) TV 3,430 INTERNET 2,313 PRINT 2,172 Source: irep
Slide 64: The appeal of TV is going from strength to strength
The appeal of TV is going from strength to strength 700 additional TV advertisers in 2018 up 91% 721 639 655 Number of new TV advertisers per year TV investment between 2016 and 2018 More than €220 m gross investment 2016 2017 2018 Source: Kantar Media
Slide 65: Significant growth potential in France: ~4% inflation per year
The TV medium still has significant growth potential in France ~ 4% inflation per year Average inflation since 2017 for the medium But … -30% vs Source: irep / Kantar Media / internal -50% vs estimate based on Group data
Slide 66: TV is under-invested in France
TV is under-invested in France TV REVENUE / POPULATION -22% VS AVERAGE 4 EURO COUNTRIES Source: EGTA / irep
Slide 67: Regulatory restrictions are easing
Regulatory restrictions are easing 1 SEGMENTED ADVERTISING OPENING UP TO CINEMA ADVERTISING TV/Digital New customers High CPM convergence
Slide 68: Robust advertising performance
Robust advertising performance €1,067 M 2018 multimedia advertising revenue up 34% in 4 years Record net market share 27% for the free-to-air channel business in Q3 2019
Slide 69: M6 Group is well prepared for the future
M6 Group is well prepared for the future
Slide 70: Q&A
Q&A
Slide 71: Conclusion
CONCLUSION
Métropole Télévision (Groupe M6) — Investor Day (December 2019) on 6ix