Rtl Group S.a. · LUXSE:RTLL
Rtl — Investor Presentation (November 2024)
68 slides from Rtl's investor presentation, November 2024
Slide 1: Investor Relations at RTL Group
November 2024 Investor Relations at RTL Group
Slide 2: Contents
Contents 01 RTL Group at a glance 02 Responsibility 03 Financials 04 Our industry in the digital media world 05 Business update 06 Strategy update 07 RTL Group share 08 Outlook 2
Slide 3: RTL Group at a glance
01 RTL Group at a glance 3
Slide 4: A leader across broadcast, content and digital
A leader across broadcast, content and digital Leading commercial Leading global Leading European media broadcaster in Europe content business company in digital video − Responsible for more than 11,000 hours of − Extensive portfolio of national streaming programming per year champions 32.5% #1 27.4
Slide 5: Europe's leading free-to-air broadcaster…
Europe’s leading free-to-air broadcaster… FY 2023 revenue in € billion 0 1 2 3 4 5 6 7 8 6.2 1 3.9 4.91 2.8 2.5 1.62 Source: published full-year results 1 Converted at an exchange rate of £0.8500 to €1.00 2 Converted at an exchange rate of SEK 11.3547 to €1.00 5
Slide 6: …with global content business…
…with global content business… Operating in 27 countries and responsible for more than 11,000 hours of programming each year 600 new formats, series and films created every year History of creating, producing, distributing and investing in worldwide content for over 100 years 6
Slide 7: 60 TV channels
60 TV channels Europe’s largest commercial broadcaster 7
Slide 8: 7 streaming services
videoland. 7 streaming services
Slide 9: 36 radio stations
36 radio stations in 4 European countries 9
Slide 10: RTL – Europe's leading entertainment brand
RTL – Europe‘s leading entertainment brand In 2021, RTL strengthened its position as a leading European media brand by creating one unified RTL brand. RTL Group, RTL Deutschland, RTL Nederland, RTL Hungary, RTL Luxembourg and the international sales unit RTL AdAlliance all operate under one RTL bran
Slide 11: Shareholding structure
23.71% Publicly traded on the Frankfurt/Main and Luxembourg Stock Exchanges Shareholding Listed on MDAX structure 76.29% Bertelsmann 11
Slide 12: Corporate Governance (1/2)
Corporate Governance (1/2) Board of Martin Taylor1,2 Directors Chairman of the Board of Directors Jean-Louis Schiltz1,2 Vice-Chairman of the Board of Directors 01 Approval of RTL Group’s annual budget 02 Oversight of significant acquisitions and disposals Executive Directors Non-Executive Directors
Slide 13: Corporate Governance (2/2)
Corporate Governance (2/2) Nomination & Compensation Committee Audit Committee Chairman of the Nomination Martin Taylor1 and Compensation Committee Pernille Erenbjerg1 Chairman of the Audit Committee Chairman of the Board of Directors Immanuel Hermreck Lauren Zalaznick1 Thomas Götz Thomas Götz Rolf
Slide 14: Strong Management Team
Strong Management Team Thomas Rabe Elmar Heggen Björn Bauer Responsibilities of the Chief Executive Officer Chief Operating Officer & Deputy CEO Chief Financial Officer Executive Committee − CEO since 2019 − Deputy CEO since 2018 − CFO since 2019 01 The Executive Committee is vested with internal −
Slide 15: RTL Group's reporting segments
RTL Group’s reporting segments RTL Deutschland Groupe M613 Fremantle RTL Nederland Other Segments 100%12 48.3%12 100%12 100%12 RTL Zwei RTL Radio (France) RTL Hungary RTL Luxembourg 35.8%14 48.3%12 100%12 100%12 Atresmedia15 We Are Era 18.7%14 100%12 Graph as presented in RTL Group’s Annual Report 2
Slide 16: Responsibility
02 Responsibility 16
Slide 17: Our role in society
Our role in society Our commitment to our … in three focus areas main stakeholders … #RTLcares We create and share stories that entertain, inform, and engage audiences around the world. Viewers, listeners and The creative community Content digital users We embrace independence and diversity in our p
Slide 18: Relevance for stakeholders
Our priority topics Relevance matrix Mandatory aspects The relevance Very High Diversity of people and content assessment was Human rights conducted in 2020 to Creative / Editorial independence & freedom (Editorial independence) Content identify the issues that Relevance for stakeholders of expressi
Slide 19: Our measures in Corporate Responsibility
Our measures in Corporate Responsibility Diversity of people Employee matters Social matters and content Learning Content responsibility − Trainee programmes − Partnerships, e.g. with Stiftung Lesen − Diversity targets − Training for employees − Child-protection standards − Enhanced maternity and ad
Slide 20: Our ambitions
Our ambitions Our content Our diversity target Our news organisations strive for truthful, fair and impartial reporting, while protecting individual rights and Our long-term ambition is for women and men to be represented equally at all levels. RTL Group’s shielding minors from inappropriate By the
Slide 21: On our way to climate neutrality by 2030
On our way to climate neutrality by 2030 Development of RTL Group’s carbon footprint (*) (in t CO2e) 2018 – 2023 279,100 181,900 -35 % 10,200 8,400 202,200 139,000 38,800 27,900 27,900 6,600 2018 2023 Site-related Employee-related Product-related Other Emissions (*) Divestments excluded: SpotX, RTL
Slide 22: Financials
03 Financials 22
Slide 23: Highlights in H1/2024
Highlights in H1/2024 ꟷ Dynamic growth in streaming ꟷ Paying subscribers: +25% to 6.3 million ꟷ Streaming revenue: +42% ꟷ Successful launch and expansion of M6+ ꟷ Full-year outlook for 2024 and long-term streaming targets confirmed ꟷ Strong operating performance in H1/2024 ꟷ Recovery of TV advertisi
Slide 24: RTL Group is transforming its revenue streams
30.9% 38.0% Content FY TV advertising RTL Group is 7.7% Selling goods and 2023 2021: 46.1% transforming its merchandise and providing services revenue streams 5.1% 6.0% RTL Group revenue split Other rights Radio, print and exploitation 4.5% streaming other advertising revenue1 5.3% – various revenue
Slide 25: H1/2024: Key financials
H1/2024: Key financials Group revenue Adjusted EBITA Total Group profit in € million Organic Adjusted EBITA growth +2% margin 6.4% 6.0% +31% +2% 173 -5% Continuing 132 63 Discontinued operations 55 operations 2,820 2,872 181 172 Continuing 110 operations 77 H1/2023 H1/2024 H1/2023 H1/2024 H1/2023 H1
Slide 26: FY/2023: Key financials
FY/2023: Key financials in € million Organic growth1 -4.1% Group -5.4% Adjusted thereof Total Group revenue EBITA1 H2 performance profit 6,589 -15.2% 6,234 922 766 Discontinued 782 124 operations 598 +18.7% 602 115 507 Continuing 642 operations 483 FY 2022 FY 2023 FY 2022 FY 2023 H2 2022 H2 2023 FY
Slide 27: H1/2024: RTL Group revenue bridge
H1/2024: RTL Group revenue bridge in € million 29
Slide 28: FY/2023: RTL Group revenue bridge
FY/2023: RTL Group revenue bridge in € million 30
Slide 29: H1/2024: Key financials
H1/2024: Key financials Adjusted EBITA in € million 250 181 172 -69 H1/2023 RTL H1/2023 Sports costs Operating H1/2024 pro forma Nederland continuing performance continuing Source: FY 2023 presentation 31
Slide 30: H1/2024: Group profit
H1/2024: Group profit in € million H1/2024 H1/2023 Adjusted EBITA 172 181 Significant special items (33) (78) EBITA 139 103 Impairment of goodwill of subsidiaries - - Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries (20) (23) Impairment and reversals of investmen
Slide 31: FY/2023: Group profit
FY/2023: Group profit in € million Full year to Dec 2023 Full year to Dec 2022 Adjusted EBITA 782 922 Significant special items (125) (42) EBITA 657 880 Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions (43) (46) of subsidiaries Impairment and reversals
Slide 32: H1/2024: Cash flow
H1/2024: Cash flow in € million H1/2024 H1/2023 Net cash from/(used in) operating activities 72 (24) -thereof discontinued operations 12 (2) Operating free cash flow 70 (33) - thereof discontinued operations 11 (2) Income tax paid (71) (77) Acquisitions/disposals of subsidiaries, at-equity investmen
Slide 33: FY/2023: Cash flow
FY/2023: Cash flow in € million 2023 2022 Net cash from/(used in) operating activities 537 463 -thereof discontinued operations 77 140 Operating free cash flow 523 565 -thereof discontinued operations 74 136 Income tax paid (162) (293) Acquisitions/ Disposals of subsidiaries, at-equity investments a
Slide 34: Dividend for 2023
Dividend for 2023 in € million Full year to Dec 2023 Profit for the year attributable to RTL Group shareholders 467 7.2% Dividend policy adjustments 26 Adjusted profit for the year attributable to RTL Group shareholders 493 2 Dividend, in € per share 2.75 Dividend, absolute amount 426 Dividend yield
Slide 35: H1/2024: Statement of financial position (balance sheet)
H1/2023: Statement of financial position (balance sheet) €m 30 June 2024 31 December 2023 Goodwill 3,373 3,148 Other intangible assets/programme rights 608 625 Property, plant and equipment 257 257 Other non-current assets 1,084 1,091 Non-current assets 5,322 5,121 Current assets 4,539 4,130 Current
Slide 36: FY/2023: Statement of financial position (balance sheet)
FY/2023: Statement of financial position (balance sheet) €m 31 December 2023 31 December 2022 Goodwill 3,148 3,331 Other intangible assets/programme rights 625 664 Property, plant and equipment 257 272 Other non-current assets 1,091 1,147 Non-current assets 5,121 5,414 Current assets 4,130 4,735 Cur
Slide 37: Our industry in the digital media world
04 Our industry in the digital media world 39
Slide 38: RTL Group's business model
RTL Group’s business model Generic broadcast value chain 40
Slide 39: RTL Group's business model
RTL Group’s business model Streaming value chain 41
Slide 40: RTL Group's business model
RTL Group’s business model Content production value chain Concept creation Pre-production1 Production IP creation IP development Shooting Script Funding Screenplay Character design Scheduling Storyboard Story Integration of process Attach key cast Storyboard Post-production International distributio
Slide 41: RTL Group's business model
RTL Group’s business model Ad-tech value chain Controlling our ad-tech strategy requires a full stack approach, secure TV data and programmatic addressable TV advertising 43
Slide 42: Business update
05 Business update 44
Slide 43: H1/2024: RTL Deutschland
H1/2024: RTL Deutschland Key financials Family of channels Highlights in € million Audience shares, in % 14-59, H1/2024 5.594 million paying subscribers 27.4% at 30 June 2024: +25% yoy +3% 1,209 10.4 Only commercial channel to gain 1,172 audience share (14-59) in Germany 5.7 Others 32.3 +44% 23 11.3
Slide 44: FY/2023: RTL Deutschland
FY/2023: RTL Deutschland Key financials Family of channels Highlights in € million Audience shares, in % 14 to 59, 2023 4.941 million paying subscribers 12% 27.4% at 31 Dec 2023: +23% yoy Margin 56 originals in 2023 -5% 9.4 2,766 25.0 RTL and Vox are the no. 1 and no. 2 commercial 6.9 Others channel
Slide 45: H1/2024: Groupe M6
H1/2024: Groupe M6 Key financials Family of channels Highlights in € million Audience shares, in % 25-49, H1/2024 20.5% Successful launch of M6+: >2.2 million downloads of the M6+ app +6% +33% in viewers +23% in streaming hours 657 12.6 622 Others 7.9 36.6 -12% 138 122 Strong #2 High reach of the Ue
Slide 46: FY/2023: Groupe M6
FY/2023: Groupe M6 Key financials Family of channels Highlights in € million Audience shares, in % Women < 50 responsible for purchases, 2023 24% 21.9% DTT license for main channel M6 Margin renewed for the next 10 years -3% 1,357 13.5 1,316 Others 31.9 8.4 +2% 311 Attractive sports rights to streng
Slide 47: H1/2024: Fremantle
H1/2024: Fremantle Key financials Highlights in € million Organic -8% growth Entertainment Drama & Film Documentaries -5% 1,007 957 -3% 36 35 American Idol: Britain’s Got Talent: Neighbours: return on Maxton Hall: the No 1 Deadliest Catch: consistently the No 1 average audience Amazon’s Freevee titl
Slide 48: FY/2023: Fremantle
FY/2023: Fremantle Key financials Highlights in € million Organic 6% Enter- Documen- growth -4.9% Margin tainment taries -3% 2,347 2,266 In total, Fremantle -14% Got Talent Spain JFK: One Day in America 162 won Drama & 139 145 awards Film in 2023 2022 2023 2022 2023 2023 Poor Things Priscilla C'è an
Slide 49: Strategy update
06 Strategy update 51
Slide 50: Strategy update – Consolidation
Strategy update – Consolidation Value creation at RTL Nederland reflected + strategic partnership in attractive deal terms with DPG Media1 5-year development of key figures Deal terms Technical services Revenue Adjusted EBITA (4 years) in € million in € million ꟷ €1.1bn cash 636 620 161 145 on debt-
Slide 51: Strategy framework unchanged
Strategy framework unchanged Alliances & Core Growth partnerships Portfolio transformation Creativity & Communications People Regulation Entrepreneurship & Marketing Enabler 53
Slide 52: Strategy update – Growth
Strategy update – Growth Dynamic growth in subscribers and revenue Long-term targets confirmed Streaming targets for RTL+ in Germany and Hungary and M6+ in France by 2026 Paying subscribers +25% in million 6.27 M6+ ~9m ~€750m 5.03 0.68 RTL+ HU 0.54 0.90 5.59 paying streaming 0.65 4.49 RTL+ DE subscr
Slide 53: Strategy update – Growth
Strategy update – Growth Expand global content business Revenue development Targets for 2026 FY, in € billion − Continued revenue growth – organic and via M&A − Maintain gross margin at current level 2.3 2.3 − Reduce and scale overheads 1.9 − Increase Adjusted EBITA margin to 9% 1.5 Main acquisition
Slide 54: Strategy update – Growth
Strategy update – Growth Expand global content business Format Countries1 Launch year IP owned by Fremantle Price Is Right 11 1956 ꟷ Strong portfolio of Password 6 1961 long-running formats Family Feud 32 1976 and established brands Idols 16 2001 ꟷ Significant IP Farmer Wants A Wife 24 2001 ownershi
Slide 55: RTL Group share
07 RTL Group share 64
Slide 56: H1/2024: Share price performance
H1/2024: Share price performance RTL Group share price development for January to June 2024 based on the Frankfurt Stock Exchange (Xetra) against DAX, MDAX, Euro Stoxx 600 Media (SXMP) and ProSiebenSat1 65
Slide 57: FY/2023: Share price performance
FY/2023: Share price performance RTL Group share price development for January to December 2023 based on the Frankfurt Stock Exchange (Xetra) against MDAX, Euro Stoxx 600 Media (SXMP) and ProSiebenSat1 66
Slide 58: Analysts' view
Analysts’ view Recommendation by Analysts Analysts covering RTL Group in % Latest update: November 2024 Latest Target price 30% Buy Date1 06/07/2023 Bank Barclays Capital Analyst Julien Roch recommendation Equal weight (in €) 26.50 Bernstein/Société 17/03/2023 Annick Maas Hold 26.00 Générale 11/07/2
Slide 59: RTL Group's equity story
RTL Group’s equity story 01 National cross- media champions 02 A leading global content business 03 Well-diversified growing revenue & 04 Efficient cost structures and cash RTL Group is leading the With Fremantle, RTL Group streams flow generation consolidation of the European owns one of the world’
Slide 60: Outlook
08 Outlook 69
Slide 61: Outlook 2024
Outlook 2024 2023 2024e Revenue €6.2bn ~€6.6bn ~€750m Adjusted EBITA €782m (+/- €50m) Streaming start-up losses €176m ~€200m 70
Slide 62: Financial calendar 2024
Financial calendar 2024 January RTL Group Financial Results 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 14 March 2024 February at 08:00 CET 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Full-Year Results: January to December 202
Slide 63: Contact
Contact Oliver Irina Fahlbusch Mettner-Isfort Executive Vice President Vice President Communications & Investor Relations Media & Investor Relations +352 2486 5200 +49 221 456 56410 [email protected] [email protected] 72
Slide 64: Investor Relations at RTL Group
September 2024 Investor Relations at RTL Group Stay connected with RTL Group A white x on a black background Description automatically generated
Slide 65: Definitions
Definitions Alternative performance measure Explanation Adjusted EBITA represents a recurring operating result and excludes significant special items. RTL Group management has established an ‘Adjusted EBITA’ that neutralises the impacts of structural distortions for the sake of transparency. Based o
Slide 66: Definitions
Definitions Alternative performance measure Explanation In accordance with RTL Group’s strategy, the company continued to invest heavily in its streaming services, RTL+ in Germany and Hungary and M6+ in France, all of which have seen a rapid increase in the number of paying subscribers (for further
Slide 67: Definitions
Definitions Alternative performance measure Explanation Operating cash conversion rate Operating cash conversion rate means operating free cash flow divided by EBITA. The net cash/(debt) is the gross balance sheet financial debt adjusted for ‘Cash and cash equivalents’; current deposits with shareho
Slide 68: Disclaimer
Disclaimer 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