POST H1 2020 RESULTS

INVESTOR PRESENTATION

SUMMARY

1

2

3

4

5

OVERVIEW OF TF1 GROUP PROFILE AND FRENCH MEDIA MARKET (P.3)

H1 2020: THE TF1 GROUP HAS DEMONSTRATED ITS HIGH REACTIVITY TO FACE THE CRISIS (P.10)

H1 2020: FINANCIAL RESULTS (P.22)

OUTLOOK (P.31)

APPENDIX (P.35)

2

Overview of TF1 group

1 profile and French

media market

3

TF1 Group : Achieving a more balanced portfolio by diversifying the model with content production and digital

TV

CONTENT PRODUCTION

BROADCASTING

DIGITAL

DRAMA

FTA CHANNELS

PUBLISHERS

THEME CHANNELS

DOCUMENTARIES ANIMATION

BRAND SOLUTIONS AND SERVICES

OTHER BROADCASTING ACTIVITIES

ENTERTAINMENT/

TALK SHOWS

TV MOVIES

SOCIAL E-COMMERCE

4

French people nearly watch 4 hours of TV a day with a sharp increase since the beginning of the lockdown

04:10

04:01

03:47

03:54

03:46

03:47

03:48

03:47

3:56

03:44

03:59

03:55

03:35

03:35

03:47

03:45

03:42

03:46

03:42

03:30

3:30

03:16

4+

W<50 PDM

H1 2010

H1 2011

H1 2012

H1 2013

H1 2014

H1 2015

H1 2016

H1 2017

H1 2018

H1 2019

H1 2020

Daily reach for TV

TV

Radio

Internet*

3:56 1:592:34

4:34 during lockdown**

Daily reach

78%

44.9m people

55%

31.7m people

Source: Médiamétrie - Médiamat TV - H1 2020 / Radio : Q1 2020 / Internet: end of May 2020 - 4+

* Internet Surf time only

5

** 16 March -10 May 2020 - 4+

France is still underinvested in TV advertising

AD TV MARKET

2019

(PER INHABITANT)

74£

62€

55€

51€

43€

Source: IREP (France)/ Exchangewire (UK), Vaunet Market (Germany), El Pais (Spain), Publieurope (Italy)

6

French net advertising market

Evolution of TV and digital advertising market (€ billion)

Digital (excl. search and others)

TV (incl. digital TV since 2017)

2,2

1,9

0,5

0,5

0,6

0,6

0,8

0,8

1,1

1,2

0,5

2,6

Media net ad revenue (€bn)

DIGITAL

Search

Display

Social

Others

TV (incl. digital TV)

PRESS

OUTDOOR ADVERTISING

2018 2019

5.2 5.9

2.3 2.5

  1. 1.2
  1. 1.4

0.7 0.8

3.4 3.4

2.2 2.1

1.3 1.3

3,3

3,1

3,4

3,5

3,3

3,2

3,2

3,2

3,3

3,3

3,4

3,4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: IREP

RADIO

CINEMA

TOTAL

0.7 0.7

0.1 0.1

12.9 13.5

7

Best audience share in Europe for the TF1 channel

Largest market share of any private

sector European TV channel

(% 2019 audience share of commercial target)

22.0 %

15.9 %

14.4 %

13.3 %

12.1 %

Unrivalled lead in Europe over #2

(% 2019 audience share of commercial target)

22.0 %

14.7 %

15.9 %

12.1 %

12.1 %

9.6 %

13.3 %

11.4 %

14,7 %

14.4 %

  • VS
    CHALLENGER

+7.3 PT

+3.8 PT

+2.5 PT

+1.9 PT

+0.3 PT

Source: Médiamétrie (France) - W<50PDM / Eurodata TV - BARB - Kantar Media (UK) - 16-44 yo /

Eurodata TV - AGB - GFK (Germany) - 14-49 yo / Kantar Media (Spain) - 18-59 yo ABCD inhab. Cities > 10,000 inhab. /8 Eurodata TV - Auditel - AGB Nielsen (Italy) - 15-64 yo

Positive impacts of changes in regulation making us confident for the future

Capacity to produce french

New corporate

drama with dependent

Co-production

tax rate

producers

Shares granted

(33% 25% in 2022)

(26% 30%)

May 2016

Dec. 2017

Jan. 2019

Feb. 2017

Dec. 2018

Relief from

New media chronology more

regulation of

favorable to broadcasters

sponsorship

Cancellation of 3 taxes by

2020

Aug. 2020

Decrees authorizing:

  • Addressable advertising
  • Advertising of cinema
  • Broadcasting movies on TV on additional days

9

2

H1 2020: The TF1 group has

demonstrated its high reactivity to

face the crisis

10

H1 2020 highlights

DURING THE COVID-19 CRISIS, THE TF1 GROUP HAS DEMONSTRATED ITS ADAPTABILITY AND STRONG REACTIVITY

  • Strong ratings thanks to editorial choices meeting the public's expectations
  • Significant downsizing of the programming costs offsetting over 50% of the decrease in advertising revenues
  • Efficient management of the health crisis by protecting employees health, adapting working methods (work from home and part-timework) and enabling the news activity to proceed

THE TF1 GROUP IS FULLY OPERATIONAL AND READY TO BENEFIT FROM RECOVERY

  • Gradual slowdown in the decline of the advertising market since the beginning of June
  • Strategic decision to keep fresh and premium programming for the last four months of 2020
  • Strong reactivity from Newen in resuming all shooting as early as possible
  • Sound financial position with low debt and access to available bilateral credit facilities

11

A winning, multi-channel strategy

Clear leader among W<50PDM

32.6%

32.6%

31.9%

10.4%

22.5%

22.0%

21.5%

2018

2019

H1 2020

High level among 25-49year-olds

29.6%

29.3%

29.4%

9.7%

20.1%

19.8%

19.9%

2018

2019

H1 2020

Source: Médiamétrie - Médiamat

12

The group creates a unique bond through its broad content offer

  • High level of TV viewing time since March (3 hrs 56 mins in H1 2020 ; +26min yoy)
  • Audience share of Ind. 25-49 y/o remained at a high level in H1 2020 at 29.6 % (stable yoy)
  • High and quick reactivity on the grid management with more family-oriented programmes

POPULAR CULT COMEDIES

FLAGSHIP ENTERTAINMENT BRANDS

INTERNATIONAL FAMILY FRANCHISES

ORIGINAL US SERIES

Harry Potter

@Warner Bros Ent. Harry Potter Publishing Rights JK Rowling

8.0 million TV viewers

Record season with

7.2 million TV viewers on

5.2 million TV viewers on

(Ranked no.1 during lockdown

6.8 million TV viewers on

average for the 8 movies

average for the 1st season

excl. news)

average

47% of W<50PDM

35% of W<50PDM

42% of W<50PDM

Source: Médiamétrie - Médiamat

13

Leadership in news consolidated

  • Daily news shows extended in order to provide comprehensive and rigorous coverage of the health crisis
  • Enhanced leader status thanks to TF1's ability to attract top politicians and health experts

6.3m TV viewers on average

6.7m TV viewers on average

6.8m TV viewers on average

1.3% audience share for Ind. aged 4+ (+0.3 pts yoy)

+1.3m TV viewers vs H1 2019

+ 1.3m TV viewers vs H1 2019

+ 1.4m TV viewers vs H1 2019

No. 2 news channel for Ind. aged 4+

Source: Médiamétrie - Médiamat - H1 2020

14

MYTF1 leadership confirmed, one year after relaunch

  • Around 21 million active user accounts
  • + 47% video views* on OTT
  • Catch-upTV enhanced by AVOD offer attracting young people through successful content like manga Naruto, US series 90210 or French soap Sous le Soleil

*Sept 2019 to June 2020 vs Sept 2018 to June 2019 - excluding app FAI and news

15

Significant reduction of the programming costs

    • Revisited formats for key franchises with stretched episodes and no-public attendance
    • High number of reruns both on TF1 and DTT channels
    • Extended daily news shows at no additional cost
    • Extra supply of movies at an optimized price
  • Savings of €107m for the first 6 months of 2020…
  • … offsetting 52% of the drop in broadcasting advertising revenues

16

Strong reactivity from

  • Understanding the impacts of the crisis in the different sectors
  • Accompanying our historical clients during the crisis
  • Attracting new advertisers (+106 in H1 2020 yoy)
  • Motivating advertisers to return to TV in the last 4 months of 2020

TF1 Pub organized webinars with

New advertisers in H1 2020

advertisers to help them during the crisis

17

After lockdown, a gradual return to TV advertising by sector

Based on TV ad revenue trends through H1 2020

18

Early rebound of Newen activity after lockdown

  • Some shooting continued with social distancing rules observed (the daily programme Le Magazine de la santé and the famous Belgian TV quiz show Blokken)
  • Shooting restarted as early as possible (since mid-May for the 2 French daily soaps Demain Nous Appartient and Plus Belle La Vie)
  • Book of orders remaining at a high level at more than 1,500 hours
  • Additional sales from the TF1 Studio and Reel One catalogues

© Fabien Malot

Le Magazine de la santé

Shooting restart of

19

Demain Nous Appartient

Strong attractiveness of Unify brands

  • Highly relevant content on the web with Doctissimo on health and Marmiton on cooking
    • 437m visits to Marmiton website in H1 2020; +56% yoy
  • Significant reduction of advertising spend in digital and programmatic due to the crisis…
  • … but resilience of the social e-commerce business
  • Development of synergies with TF1 channel
    • Opportunistic TV advertising campaigns for My Little Box, Gambettes Box and Beautiful Box on TF1
    • Editorial partnership between News and Doctissimo

20

The TF1 group has supported a variety of good causes during the health crisis

SOLIDARITY

  • Identifying hospital's urgent needs and putting together product and service offers from companies
  • Raising funds to support health workers, patients, vulnerable people and medical research
  • Donating game show gains to charities involved in health care, fighting violence against women and food distribution

NEWS

FREE TV CAMPAIGNS

DEDICATED TV PROGRAMMES

21

3

H1 2020: financial

results

22

Consolidated revenue

(€M)

H1 2020

H1 2019

CHG.€M

CHG.%

BROADCASTING

683.3

890.8

(207.5)

-23.3%

ADVERTISING REVENUE

586.1

791.4

(205.3)

-25.9%

OTHER REVENUE

97.2

99.4

(2.2)

-2.2%

STUDIOS & ENTERTAINMENT

131.8

168.8

(37.0)

-21.9%

PRODUCTION / SALE OF AUDIOVISUAL RIGHTS

107.8

110.5

(2.7)

-2.4%

REVENUE FROM GAMES, MUSIC, LIVE SHOWS & HOME SHOPPING

24.0

58.3

(34.3)

-58.8%

UNIFY

68.4

85.6

(17.2)

-20.1%

WEB PUBLISHING (DIGITAL CONTENT, SOCIAL E -COMMERCE)

53.5

67.7

(14.2)

-21.0%

OTHER REVENUE (DIGITAL MARKETING)

14.9

17.9

(3.0)

-16.8%

TOTAL REVENUE

883.5

1,145.2

(261.7)

-22.9%

Excluding the effect of changes in structure, H1 2020 revenues dropped by -22.6%

Under IFRS 16 norm

23

H1 2020 trends in gross ad spend for TF1 group channels

Source: Kantar media, H1 2020 vs H1 2019. Gross advertising spend (excluding sponsorship) for the 5-free-to-air channels.

24

Cost of programmes

25

Current operating profit per segment

Under IFRS 16 norm

26

Consolidated income statement

Under IFRS 16 norm

27

Balance sheet

Under IFRS 16 norm

28

Trends in net cash position H1 2020 (excluding the impact of IFRS 16*)

29

Covid-19 impacts

  • Negative impact on H1 2020 results
    • Total revenue drop of around €250m
    • EBIT drop of around €100m
  • Low visibility for the coming months
  • Withdrawal of our objectives for 2020 and 2021

30

4 Outlook

31

Strong line-up to seize opportunities in back-to-school period

  • New seasons of key franchises: Mask Singer, Koh Lanta, etc.
  • TV premieres for French hit movies and international blockbusters: Le Sens de la Fête, A star is born, etc.
  • Brand new mini series: Grand Hotel, HPI, Pourquoi je vis, etc.
  • New hosts on LCI

KEY FRANCHISES

FRENCH DRAMA

CINEMA

@Christophe Chevalin - TF1

©Thibault Grabherr /Itinéraire Productions/TF1

2nd season on TF1

HPI, new series on TF1

More than 3 million box

Darius Rochebin and

office entries

Eric Brunet

32

Many new productions in the pipeline for Newen

  • Strong line-up of shooting for H2 2020 with originals like Grand Hotel (TF1) and Opera (OCS)
  • 2 new daily soaps Ici tout commence (TF1) and Lisa (VTM) confirming Newen know-how in such format
  • More than 10 production projects for platforms like the movie Ferry and the series Undercover (season 2) for Netflix both produced by De Mensen

Lisa

© VTM

Undercover (season 2)

© Nyk Dekeyser

33

Salto, a platform with local content on an unprecedented scale

The biggest shop window for French creative talent

  • 15,000 hours of content across all genres from day 1
  • 20,000 hours by the end of the year
  • First-runcontent every month
  • Recommendation system fronted by celebrities and influencers

Commercial launch before end of 2020

  • Platform beta test in July 2020
  • Launch in fall 2020

34

5 Appendix

35

2019: Key results

Under IFRS 16 norm

€m

FY 2019

FY 2018

Chg. €m

Chg. %

Consolidated revenue

2,337.3

2,288.3

49.0

2.1%

TF1 group advertising revenue

1,658.1

1,662.2

(4.1)

-0.2%

Revenue from other activities

679.2

626.1

53.1

8.5%

Consolidated revenue

2,337.3

2,288.3

49.0

2.1%

Broadcasting

1,774.2

1,763.7

10.5

0.6%

o/w Advertising

1,567.4

1,588.2

(20.8)

-1.3%

Studios & Entertainment

390.0

408.6

(18.6)

-4.6%

Digital (Unify)

173.1

116.0

57.1

49.2%

Cost of programmes

(985.5)

(1,014.2)

28.8

-2.8%

Current operating profit

255.1

198.8

56.3

28,3%

Current operating margin

10.9%

8.7%

-

2.2

Broadcasting

185.5

151.0

34.5

22.8%

Studios & Entertainment

57.9

35.5

22.4

63.1%

Digital (Unify)

11.7

12.3

(0.6)

-4.9%

Operating profit

255.1

176.8

78.3

44.3%

Net profit attributable to the Group

154.8

127.4

27.4

21.5%

36

2019: Cost of programmes

(€M)

FY 2019

FY 2018

CHG.€M

CHG.%

DRAMA / TV MOVIES / SERIES / PLAYS

-331.8

-348.2

(16.4)

-4.7%

VARIETY / GAMESHOWS / MAGAZINES

-271.4

-238.5

32.9

13.8%

FILMS

-148.3

-159.0

(10.8)

-6.8%

NEWS (INCL. LCI)

-134.7

-136.7

(1.9)

-1.4%

SPORTS

-87.4

-118.9

(31.4)

-26.4%

CHILDREN'S PROGRAMMES

-11.8

-13.0

(1.1)

-8.7%

TOTAL

-985.5

-1,014.2

(28.8)

-2.8%

37

Trends in net cash position 2019 (excluding the impact of IFRS 16*)

€M

416.65.3

-22.1-32.3

-245.0

-27.5

-132.6

-84.0

-4.7

-126.3

Cash position

Operating

Decrease

Cost of

Change in

Net capital

Acquisitions/

Dividends, shares

Others***

Cash position

at start of

cashflow**

in lease

net debt

operating working

expenditure

disposals

Buyback and

at end of period

period

obligations

capital needs

stock -options

Trends in

256.7

360.4

-20.2

6.0

16.9

-210.4

-361.5

-73.1

-2.3

-27.5

NCP 2018

*Excluding lease obligations

**Cash flow after income from net surplus cash/cost of net debt, interest expense on lease obligations and income taxes paid

38

*** Including acquisition of financial assets, net change in borrowings and cost of net debt

Philippe DENERY - CFO pdenery@tf1.fr

Stéphanie LAVAL - Head of Investor Relations slaval@tf1.fr

Anaïs AMGHAR- Investor Relations

aamghar@tf1.fr

IR team

comfi@tf1.fr

TF1 1 Quai du Point du Jour 92 656 Boulogne-Billancourt Cedex France

https://www.groupe-tf1.fr/en

39

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TF1 - Television Francaise 1 SA published this content on 25 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2020 15:14:09 UTC