RTL S A : An introduction to RTL Group

AGENDA

• WHO WE ARE
• HOW WE DO
• WHERE WE GO

WHO WE ARE

Who we are

RTL GROUP IS A LEADER ACROSS BROADCAST, CONTENT AND DIGITAL

Leading commercial	Leading global	Leading European media
broadcaster in Europe	content business	company in digital video

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Who we are

68 TV CHANNELS

EUROPE'S LARGEST

COMMERCIAL

BROADCASTER

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Who we are

10 STREAMING SERVICES

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Who we are

31 RADIO STATIONS IN 5 EUROPEAN COUNTRIES

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Who we are

FREMANTLE IS RTL GROUP'S CONTENT POWERHOUSE AND GLOBAL LEADER IN CONTENT (PRODUCTION AND RIGHTS)

Got Talent	American Idol

The Price Is Right	American Gods

The Farmer Wants A Wife

Gute Zeiten, schlechte Zeiten

Deutschland 83, 86, 89

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Operations in over 30 countries, creating 12,800 hours of TV programming a year

Producing number one prime-time shows for major broadcasters in almost every major TV market in the world

Distributing more than 20,000 hours of content in over 200 territories

Over 400 titles on air or in production at any one time

Who we are

OUR MISSION STATEMENT

We are innovators who shape

the media world across broadcast, content and digital.

We build inspiring environments where creative and pioneering spirits can thrive.

We create and share stories

that entertain, inform, and engage audiences around the world.

We embrace independence and diversity in our people, our content and our businesses.

We have a proud past, a vibrant present and an exciting future.

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Who we are

FROM A TRULY EUROPEAN COMPANY TO A GLOBAL GROUP

19311954

1997	2000	2000	Today, over 16,000
			employees in more than

30 countries worldwide are

#PARTofRTL

Publicly traded

on the Frankfurt/Main and 23.72% Luxembourg Stock Exchanges

Bertelsmann

76.28%

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HOW WE DO

How we do

PROGRESS ACROSS ALL THREE STRATEGIC PRIORITIES IN 2019

1	Higher audience and TV advertising
market shares in Germany and France

2	Strong growth of content (+12.6%) and
streaming revenue (+46.7%)

3	New alliances and partnerships

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How we do

REVENUE AT ALL-TIME HIGH, PROFIT UP 10 PER CENT IN 2019

	organic1
Revenue: €6,651m +2.2%	+3.2%

Adjusted €1,156m -1.3% Margin: 17.4% -0.6pp

EBITA2:

Profit for	€864m	+10.1%
the year:

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

WHERE WE GO

Where we go

NEW STRATEGIC FRAMEWORK

HI GHER REACH &

MONET I SAT I ON

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Where we go

1 STRATEGIC PRIORITIES - CORE

STRENGTHEN MARKET POSITIONS

Families of channels: Build and extend families of channels organically or through consolidation in existing footprint

Operational efficiency: Assess opportunities to optimise cost base and review portfolio of assets

#1 or #2

in every market1

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

INVEST IN PREMIUM CONTENT

Content: Invest to leverage for both linear and streaming services

FC Group: Develop factual entertainment formats and reality shows, in close cooperation with RTL broadcasters

€3.5bn

(€1.5bn Fremantle)

content investment p.a.

Where we go

2 STRATEGIC PRIORITIES - GROWTH

BUILD NATIONAL STREAMING CHAMPIONS

Investments: Boost investments in content, marketing and technology

Execution: Roll-out via stand-alone services or national partnerships

Hybrid model: Combine advertising with premium paid offers

TARGETS 2025¹

5m to 7m paying subscribers

• €500m streaming revenue

• €350m content spend p.a., 4x higher than 2019

EBITA break-even

17 Note: 1. Refers to TV Now and Videoland combined

Where we go

2 STRATEGIC PRIORITIES - GROWTH

November 2020: strategic partnership RTL Deutschland & Deutsche Telekom

Integration of RTL streaming service TV Now Premium in the price plan Magenta TV Smart

• Higher reach, brand awareness, customer experience
• Extensive promotion: marketing campaign; >1,500 POS in Germany

Cooperation in advertising technology: focus on Addressable TV

• First tests in 2021 with RTL solutions Smartclip and Yospace
• Open for additional partners

Additional areas: ad sales, content production and exploitation

MagentaTV

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Where we go

2 STRATEGIC PRIORITIES - GROWTH

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

TARGETS

Leading

European advertising technology platform

Leading

European streaming technology platform

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Where we go

2 STRATEGIC PRIORITIES - GROWTH

EXPAND GLOBAL CONTENT BUSINESS

Creative freshness: Nurture established brands and invest in new formats

Portfolio: Diversify and foster client base with global streaming platforms

Network: Maximise global network and scale by investing in talent and markets

23%

share of drama revenue

BUILD LEADING DIGITAL TALENT NETWORK AND CONTENT STUDIO

Divimove: Expand talent management, production of short-form video content, advertising sales and technology & data

34bn

video views in 20191

20 Notes: 1. Including Divimove and United Screens

Where we go

3 STRATEGIC PRIORITIES - ALLIANCES & PARTNERSHIPS

EXPAND ADVERTISING SALES

LEVERAGE CONTENT EXPERTISE

Ad Alliance: Build one-stop advertising sales houses for cross-media campaigns

Content alliance: Create and exploit cross-media content

RTL AdConnect: Drive international advertising sales to access large TV and streaming portfolio

99%	€2.0bn
Ad Alliance's reach of	content investment p.a.
German population	in Germany

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