RTL S A : Group Investor Relations Presentation

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 GLOBAL CONTENT BUSINESS…

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RTL Group at a glance

…AND ONE OF THE LEADERS IN DIGITAL VIDEO IN EUROPE

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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

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Highlights - FY 2019

PROGRESS ACROSS ALL THREE STRATEGIC PRIORITIES

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Highlights - FY 2019

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

organic1

€6,651m +2.2% +3.2%

€1,156m -1.3% Margin: 17.4% -0.6pp

€864m +10.1%

22 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

Highlights - HY 2020

RTL GROUP'S BUSINESSES DEMONSTRATE RESILIENCE

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Unprecedented revenue decline in Q2

50% of revenue decline offset by cost savings

Operating cash conversion rate of 164%; reduction of net financial debt

Gains in advertising market shares

Outperformance of commercial competitors on audience ratings in GER, FR and NL

Boost of streaming services: paying subscribers in GER and NL up 45% to 1.77m

Le 1945 / M6

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Financials - FY 2019

REVENUE BRIDGE

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Financials - FY 2019

HIGHLY DIVERSIFIED REVENUE MIX

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Financials - FY 2019

STRONG FINANCIAL KPIs

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Financials - FY 2019

HIGH MARGINS, LOWER DEBT

	Full year to	Full year to	Per cent
In € million	December 2019	December 2018	change
Revenue	6,651	6,505	+2.2
Underlying revenue	6,518	6,317	+3.2
Operating cost base	5,623	5,464	+2.9
Adjusted EBITA	1,156	1,171	(1.3)
Adjusted EBITA margin (%)	17.4	18.0	(0.6)pp
EBITA	1,139	1,171	(2.7)
Net debt	(384)	(470)	-
Net debt EBITDA ratio at end of year	0.27	0.34	-

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Financials - FY 2019

NET PROFIT UP STRONGLY

	Full year to	Full year to	Per cent
In € million	December 2019	December 2018	change
Reported EBITA	1,139	1,171	(2.7)
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value	87	27
of pre-existing interest in acquiree and earn-out arrangements
Impairment of goodwill of subsidiaries, investments accounted for using the equity
method, amortisation and impairment of fair value adjustments on acquisitions of	(65)	(122)
subsidiaries
Net financial expense	(5)	(13)
Income tax expense	(292)	(278)
Profit for the year	864	785	+10.1
Profit for the year attributable to RTL GROUP SHAREHOLDERS	754	668	+12.9

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Financials - FY 2019

HIGH LEVEL OF CASH CONVERSION

	Full year to	Full year to
In € million	December 2019	December 2018
Net cash flow from operating activities	1,085	873
Add: Income tax paid	334	354
Less: Acquisition of assets, net	(220)	(178)
Equals: Reported free cash flow (FCF)	1,199	1,049
Acquisition of subsidiaries, net of cash acquired	(235)	(18)
Acquisition and disposal of other investments and financial assets, proceeds from the	123	117
sale of investments accounted for using the equity method
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 - FY 2019

SIGNIFICANT VALUE ADDED

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Financials - FY 2019

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)

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Financials - HY 2020

PROFIT MARGIN AT 10% IN THE FIRST HALF OF 2020

	Half year to	Half year to	Per cent
In € million	June 2020	June 2019	change
Revenue	2,652	3,173	(16.4)
Operating cost base	2,441	2,684	(9.1)
Adjusted EBITA	258	538	(52.0)
Adjusted EBITA margin (%)	9.7	17.0	(7.3)pp
Reported EBITA	241	538	(55.2)
Reported EBITDA	362	662	(45.3)

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Financials - HY 2020

50% OF REVENUE DECLINE IN Q2/2020 OFFSET BY COST REDUCTIONS

In € million

340
	-469
Adjusted EBITA	Revenue
Q2/2019	decline

Compensation rate: 50%

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+234
Cost	Adjusted EBITA
compensation	Q2/2020

Q2/2020 vs. Q2/2019

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Financials - HY 2020

POSITIVE NET RESULT

	Half year to	Half year to	Per cent
In € million	June 2020	June 2019	change
Adjusted EBITA	258	538	(52.0)
Special items	(17)	-
Reported EBITA	241	538	(55.2)
Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value	88	70
of pre-existing interest in acquire
Impairment of goodwill of subsidiaries, investments accounted for using the equity
method, amortisation and impairment of fair value adjustments on acquisitions of	(69)	(10)
subsidiaries
Net financial expense	(19)	-
Income tax expense	(85)	(155)
Profit for the period	156	443	(64.8)
Profit for the period attributable to RTL GROUP SHAREHOLDERS	94	393	(76.1)

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Financials - HY 2020

HIGH OPERATING CASH FLOW & CONVERSION DUE TO WORKING CAPITAL MANAGEMENT

	Half year to	Half year to
In € million	June 2020	June 2019
Net cash from operating activities	336	354
Add: Income tax paid	159	255
Less: Acquisition of assets, net	(100)	(96)
Equals: Operating free cash flow (FCF)	395	513
Acquisition/disposal of subsidiaries, net of cash acquired/disposed	27	83
Acquisition and disposal of other investments and financial assets, proceeds from the	(7)	(5)
sale of investments accounted for using the equity method
Net interest paid	(19)	(17)
Transactions with non-controlling interests, treasury shares	(7)	(28)
Income tax paid	(159)	(255)
Dividends paid	(4)	(531)
Cash generated (cash used)	226	(240)
Reported EBITA	241	538
OPERATING CASH CONVERSION RATE (FCF/EBITA)	164%	95%

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Financials - HY 2020

REDUCED NET DEBT SINCE END OF 2019

	As at 30	As at 31
In € million	June 2020	December 2019
Gross balance sheet debt	(923)	(788)
Add: Cash and cash equivalents	512	377
Add: Current deposit with shareholders	226	27
Add: Other effects	4	-
Net debt	(181)	(384)

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HOW THE INDUSTRY IS CHANGING WITH FRAGMENTATION

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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

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Mediengruppe RTL Deutschland - FY 2019

HIGHER AUDIENCE AND NET TV ADVERTISING MARKET SHARES

Key financials¹	Family of channels
In € million	14 to 59, FY 2019
Revenue	28.1%3
EBITA
+0.1%
organic1

-1.8%
2,304	2,262			10.7%
23.7%
	Others		6.4%
			MARKETMARKET	11.0%
	ARD-III	7.4%	LEALEADER
723	663	7.8%
	ARD
			8.0%	25.0%
	ZDF			P7S1
FY 2018	FY 2019

HIGHLIGHTS

44 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

Mediengruppe RTL Deutschland - HY 2020

OUTPERFORMING COMMERCIAL COMPETITION

Key financials¹

Family of channels

HIGHLIGHTS

In € million	14 to 59, H1/2020
Revenue	28.0%2
Adjusted EBITA

-16.9%
1,088
	904
328
	174
H1/2019	H1/2020

					NTV in March 2020 with best
Others	23.1%		10.7%		audience share ever
6.2%

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			MARKET	11.1%			RTL Studios to acquire
ARD-III	7.8% LEALEADER				99 Pro Media
ARD	8.2%
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ZDF	8.9%		P7S1	1st format developed by

FC Group launched on

TV Now:

Like me - I'm famous

45 Notes: 1. Including Smartclip, 2. Incl. RTL Zw ei, Super RTL, incl. pay-TV

Groupe M6 - FY 2019

HIGHER AUDIENCE AND NET TV ADVERTISING MARKET SHARES

Key financials¹	Family of channels
In € million		Family of channels
Revenue		Women < 50 responsible
	for purchases, FY 2019	22.8%
EBITA
-0.2%
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-1.8%
1,483	1,456			14.7%
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			32.6%	8.1%
				STRONG #2
275	287	France 3	3.7%	32.3%
		France 2		8.6%
			Groupe TF1
FY 2018	FY 2019

HIGHLIGHTS

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

Groupe M6 - HY 2020

GAINS IN AUDIENCE SHARE, SIGNIFICANT COST REDUCTION

Key financials¹

In € million

Revenue

Adjusted EBITA

-22.1%
715
	557
150	85
H1/2019	H1/2020

Family of channels

Family of channels

Women < 50 responsible

for purchases, H1/2020	22.5%

14.1%

Others

34.2%8.4%

STRONG #2

France 3	3.4%	31.4%
France 2	8.5%	Groupe TF1

HIGHLIGHTS

News shows with

massive audience

growth in March 2020

Exclusive negotiations with Stars to sell Groupe M6's home shopping business

47 Note: 1. Gulli consolidated as of September 2019

RTL Nederland - FY 2019

VIDEOLAND CONTINUES TO GROW RAPIDLY

Key financials	Family of channels
In € million		Adults 25 to 54, Prime time,
Revenue		FY 2019
29.8%
EBITA

-1.1%
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-1.6%		Others	16.9%
504		18.8%
496
		MARKETMARKET	12.9%
		LEALEADER
		28.1%
71	54	Pubcaster	23.3%
		Talpa TV
FY 2018	FY 2019

HIGHLIGHTS

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

RTL Nederland - HY 2020

GROWTH OF STREAMING SERVICE VIDEOLAND

Key financials	Family of channels
In € million	Adults 25 to 54, prime time,
Revenue	H1/2020
30.8%
Adjusted EBITA

-11.9%		Others
		17.5%	18.3%
235	207
	MA
		MARKET	12.5%
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		30.2%
18		Pubcaster
2		21.5%	Talpa TV
H1/2019	H1/2020
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HIGHLIGHTS

Strong performance of

entertainment formats

(The Voice of Holland,

Legomasters)

New hybrid model launched for Videoland; premium inventory available to Dutch Ad Alliance

Fremantle - FY 2019

GROWTH FUELLED BY DRAMA PERFORMANCE

Key financials

HIGHLIGHTS

In € million

		+ 12.6%
		164	1,793
1,592	37				+ 11.8%
	FX	Organic growth			142
Revenue				127
	+10.3%		EBITA
Drama			Drama
FY 2018			FY 2019	FY 2018	FY 2019

19%

Drama % of total revenue

23%

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Fremantle - HY 2020

CREATIVE SUCCESSES ACROSS ALL GENRES

Key financials

HIGHLIGHTS

In € million

Revenue Adjusted EBITA

Ted Sarandos, Co-CEO

of Netflix: "biggest

competition show ever"

-14.6%
828
	707
52	23
H1/2019	H1/2020
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My Brilliant Friend

BBC's highest-rated drama since August 2018, sold to AMC in the US

Continued push into drama production

NEW STRATEGY FRAMEWORK

HIGHER REACH &

MONETISATION

FY 2019

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STRENGTHEN MARKET POSITIONS

INVEST IN PREMIUM CONTENT

#1 or #2	€3.5bn
	(€1.5bn Fremantle)
in every market1	content investment p.a.

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

FY 2019

2 STRATEGIC PRIORITIES - GROWTH

BUILD NATIONAL STREAMING CHAMPIONS

TARGETS 2025¹

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

HY 2020

2 STRATEGIC PRIORITIES - GROWTH

BUILD NATIONAL STREAMING CHAMPIONS

TARGETS 2025¹

Note: 1. Refers to TV Now and Videoland combined

2 STRATEGIC PRIORITIES - GROWTH

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MagentaTV

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FY 2019

2 STRATEGIC PRIORITIES - GROWTH

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FY 2019

2 STRATEGIC PRIORITIES - GROWTH

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

23%

34bn

59 Notes: 1. Including Divimove and United Screens

HY 2020

2 STRATEGIC PRIORITIES - GROWTH

DELIVERING STRONG DRAMA PIPELINE

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FY 2019

3 STRATEGIC PRIORITIES - ALLIANCES & PARTNERSHIPS

EXPAND ADVERTISING SALES

LEVERAGE CONTENT EXPERTISE

99%

€2.0bn

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HY 2020

3 STRATEGIC PRIORITIES - ALLIANCES & PARTNERSHIPS

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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

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OUTLOOK FOR 2020

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FINANCIAL CALENDAR 2021

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DEFINITIONS

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CONTACT

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DISCLAIMER

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