TF1 GROUP. Pay TV. Broadcasting international

Transcription

1 Investor Presentation September - October 2010

2 TF1 GROUP Free Channels Pay TV Advertising Diversification Audiovisual Production (France) adgency & Internet rights Broadcasting international 2

3 Multi-channel offer reaches maturity Over 4 year olds MULTI-SHARE SHARE 100% 90% 82% 85% 86% 88% 91% 93% 80% 70% 60% 50% 45% 51% 55% 60% 65% 70% 74% 78% Terrestrial switch-off by region since February 2010: 40% 30% 20% 10% 21% 23% 25% 26% 28% 33% 39% - February 2010: Alsace - March 2010: Lower Normandy - May 2010: Pays de la Loire - June 2010: Brittany End of switch-off: November % Jan n-01 Jan n-02 Jan n-03 Jan n-04 Jan n-05 Jan n-06 Jan n-07 Ap r-07 July y-07 Oc ct-07 Jan n-08 Ap r-08 July y-08 Oc ct-08 Jan n-09 Ap r-09 July y-09 Oc ct-09 Jan n-10 Ap r-10 July y-10 Source: Médiamétrie 3

4 TF1, an European leader Audience share (in %) of leading European channels on their own national territories in 2010 Gap between each leader and its challenger Leader Challenger TF1 France % 24.6% 82pts 8.2 Leader BBC % ITV1 Challenger 16.9% 4.4 pts Leader Challenger Das 1 ZDF 13.8% 13.2% 0.6 pt Leader Challenger TVE1 Tl Tele % 14.9% 1.4 pt Leader Rai % Challenger Canale % 1.8 pt SOURCE : Médiamétrie 2010, 4 years and over + / Eurodata TV Médiamétrie 2010, 4 years and over (January/August) / Eurodata TV Relevant Partners, individuals. (January/July for UK, Germany, Spain & January/June for Italy) 4

5 Key figures in first-half 2010 of the top 50 audience ratings market share, individuals share, women<50 million TV viewers on prime-time of leading evenings, individuals* Prime-time programmes: 54 with more than 8 million TV viewers 18 with more than 9 million TV viewers 6 with more than 10 million TV viewers * Leading evenings for entire TF1 prime time Source: Médiamétrie Médiamat Jan. Aug

6 TF1, 1 st French TV Channel (on individuals 4 years and +) Audience share 4 years and + (in %) Change. vs Jan. Aug % -2% -11% -3% - 4% -4% + 32% Jan. - Aug Jan. - Aug ,3 24,6 19,2 16,4 16,8 12,1 10,8 10,4 10,8 12,8 12,3 14,5 2,9 3,0 TF1 F2 F3 C+ M6 Whole Ch. Pay. paying Whole Ch. TNT DTT channels channels SOURCE : Médiamétrie Médiamat Jan. Aug

7 TF1, 1 st French TV Channel (on advertising target) Audience share on Women below 50 (in %) Change. vs Jan. Aug % -5% - 10% -7% - 5% + 1% + 30% 29,9 28,1 Jan. - Aug Jan. - Aug ,6 16,4 12,9 12,2 17,3 11,7 11,8 15,8 6,9 6,2 2,5 2,7 TF1 F2 F3 C+ M6 Whole Ch. Pay. paying channels Whole Ch. TNT DTT channels SOURCE : Médiamétrie Médiamat Jan. Aug

8 TF1 makes progress in prime-time in 2010 Prime-time TV viewers (in million) Change. vs Jan. Aug ,1m -0,1m -0,1m -0,1m -0,1m +1,1m 6,2 m Jan. - Aug Jan. - Aug ,2 m 4,2 m 36 3,6 m 3,5 m 2,8 m 2,6 m 3,3 m 3,0 m 2,2 m 2,2 m 3,1 m TF1 F2 F3 M6 Whole Ch. Pay. paying Ch. Whole TNT DTT channels channels Prime time : 8.45 pm pm SOURCE : Médiamétrie Médiamat Jan. Aug

9 Improved performance in 7pm 1am slot TF1 audience share 4 years and over Women < pts +3.8 pts 24.6% 27.4% 28.1% 31.9% Whole day 7pm - 1am Whole day 7pm - 1am pts pts pts pts vs challenger vs challenger SOURCE : Médiamétrie Médiamat Jan. Aug

10 An investment in DTT to strengthen on our core business National audience share (in %) Jan. Aug years and Direct 8 W9 TMC NT1 NRJ12 F4 BFM TV I.Télé Virgin 17 Gulli Women < Direct 8 W9 TMC NT1 NRJ12 F4 BFM TV I.Télé Virgin 17 Gulli Jan.- June Jan.- June OUR COMMITMENTS FACILITATE RIGHTS CIRCULATION IN THE MARKET LIMIT REPEATS WITHIN THE GROUP NO CROSS-PROMOTION FOR TMC AND NT1 ON TF1 & CHANNELS WITH WELL-DEFINED EDITORIAL IDENTITY SEPARATE ADVERTISING DEPARTMENTS 2 ADVERTISING DEPARTMENTS TO + APPOINTMENT OF AN INDEPENDENT REPRESENTATIVE SATISFY A BROAD CUSTOMER PANEL SOURCE : Médiamétrie Médiamat Jan. Aug

11 Television number-one media investment in 2010 January-June Pick-up in gross multimedia investment with strong contribution from TV - DTT investments as dynamic as ever million +17.3% 3, % 3, % TV Historical channels: +13.3% DTT: +38.4% Free-to-air TV: +18.6% CabSat: +6.1% 1,890 na* +9.6% 1,550 1, % 86 Market share 30.9% 29.4% 15.3% 12.5% 11.2% 0.7% SOURCE : Kantar Média - gross data - *Difference with 2009 cannot be measured due to change in method in

12 Only TF1 can offer this much power Janv-Avril 2010 Fem RDA < 50 ans With 33 million TV viewers every day, TF1 remains the only mass media a vital advertising criterion in a fragmented audiovisual sector Breakdown of ad slots by audience type. Women<50 First-half % 7% 1% 2% 23% 7% 83% 25% 33% 37% 60% 77% +2 2pts vs % + 6pts vs % 3% 2% 2% 31% TF1 DELIVERS MORE THAN 90% OF THE POWERFUL AD SLOTS, UP 6 PTS ON 2009 Source: Médiamétrie year-to-date 4-plus audience,h vs 2009 Mediaplanning files March-April 2010 Kantar Média CT/GRP for Women<50 12

13 : number-one multi-platform division RADIO CLOSENESS / TRAFFIC POWER EMERGENCE EMERGENCE EVENTS-BASED LES IndÉpendAnts: leading advertising offer for yrs oldsclose to 8 million listeners a day THEME AFFINITY / TARGETING WEB CLOSENESS / INTERACTIVITY MOBILE ONE TO ONE / INTERACTIVITY UNIFYING GENERAL-INTEREST ENTERTAINMENT NEWS MÉDIA BRANDS MEN / AB+ YOUTH WOMEN / YOUTH SEGMENTATING SPORT.fr WOMEN.fr.fr OPERATOR PORTALS ENTERTAINMENT DIGITAL REEL LIFE ADVERTISING LIFE ADVERTISING AD-SLOTS INSERTS RICH SPONSORING PRODUCT PLACEMENT TV INTERACTIVE MY TF1 TF1 CONSO CHILDREN / MOTHERS AB+ YOUTHSSE TF1 Pub: no. 3 mobile advertising entity in fast-growth market (+30% vs 2009) Channels at TF1 Advertising agency : close to 13 million individuals exposed in one weektv Breizh, 1 st pay TV channel among W<50 TF1.fr: Highly attractive video-based advertising SOURCE : Médiamétrie 126,000 Radio Apr-June 2010 Monday-Friday 5 am to midnight Target:13 yrs olds + Médiamat Thématik, 2010 Mar 01 june 20 - Mobile: H vs 2009 based on 5 responding ad entities 13

14 2 new free-to-air channels: TMC and NT1 3.7% audience share in August 2010 for the 4-plus demographic 3.9% audience share in August 2010 for housewives under 50 in charge of household spending Audience record: 1.7 million (January 2010) 1.6 % audience share in August 2010 for the 4-plus demographic 1.5% audience share in August 2010 for housewives under 50 in charge of household spending 2009 sales = 25 million 2009 operating profit = 0 million 2009 sales = 65 million 2009 operating profit = million RECONFIGURING OUR FREE-TO-AIR CHANNELS SOURCE : Médiamétrie Médiamat 14

15 Review of 2010 FIFA World Cup Success of Group sites: - 10 m videos watched on dedicated site Strong audience ratings all-round: m for France-Mexico at 8 pm m for France-South Africa at 4 ppm m on average for Le Mag World Cup show - 31 m unique visitors Overall: 40% of over 4 yr olds and 7.1 m of TV viewers on 27 matches 39% of over 4 yr olds and 8.9 m for prime-time matches 9 matches with more than 8 m TV viewers Globally positive event for the Group in terms of sales: Gross advertising sales from matches for TF1 channel: 75 m (excl. sponsorship) - 98% fill rate Additional sales: - Ads before and after the World Cup - On Eurosport and the web - 250,000 iphone app downloaded - 334,000 bets on EurosportBET and 40,000 registered users 120 m in rights: 33 m sold to France Télévisions and Canal + 17 m of provisions for capital losses in 2009 optimised production costs Result: optimised rights 15

16 Eurosport s outstanding geographical expansion Broadcast IN EUROPE the biggest events live (TV, news, Internet) Export OUTSIDE EUROPE European sport and its major events (TV, news, Internet) EUROPE 120 m households 45 m households 10 m households 1 m households ASIA -PACIFIC 5 M householdsh 4 m householdsh 2 languages 18 countries 6 m households 20 languages 59 countries 15 languages 46 countries 2 languages 5 m Unique visitors (May 10) 9 languages 12 m unique visitors (May 10) AFRICA Launch planned din Lusophone Africa in early 2011 REST OF WORLD 2 languages 2.5 m unique visitors (May 10) 16

17 Initiatives at all subsidiaries in all sectors Innovative websites Successful cinema releases Major initiatives taken at TF1 Publicité Renewal of Discovery unit Broader territory for TF1 Games Launch of multiple musical partnerships Development of e-commerce Follow through on our product innovations Follow-through Strong performance in new territories F Formation ti off major j partnerships t hi Redesign of WAT.TV, coupe-du-monde.tf1.fr, tf1.fr/jeux/ Camping 2 2, Adèle Blanc Sec Sec, Les Invités de mon Père TF1 Conso Conso... Stylia (Odyssée) 1000 bornes Christophe Mae, Mozart, Spiritus Dei placedestendances.com TF1 HD, VOD, TF1 Player Player, Eurosport Player, HD TF1 3D, 3D MyTF1, MyTF1 VOD Player Connected TV TF1 Production, EurosportBET, FDJ, CRM UGC Sony UGC, Sony, Samsung Samsung, FDJ 17

18 A record-breaking half-year for tf1.fr TOTAL FOR JANUARY - AUGUST MILLION TF1 CATCH-UP VIDEOS WATCHED NEWS - H record US SERIES - H record AUGUST MILLION TF1 CATCH-UP VIDEOS WATCHED 931,000 CATCH-UP VIDEOS OF 17/06 NEWS PIECE WATCHED TV FILMS - H record 1.5 million CATCH-UP VIDEOS WATCHED 800,000 VIDEOS OF «CLEM, 3 ANS APRES» WEB EXCLUSIVE 400,000 CATCH-UP VIDEOS OF LAST TWO EPISODES SPORT - H record 750,000 CONNECTIONS TO LIVE COVERAGE ON TF1.FR DURING FRANCE-SOUTH AFRICA MATCH ,000, SECRET STORY 24,000, ,440,800 YOUNG AND THE RESTLESS 833, ,000 BIENVENUE DANS MA 5 6 TRIBU 470, SEPT A HUIT 8 445, ,000 PREMIER AMOUR , PM, 8 PM, WKND NEWS 984,000 MASTERCHEF JOSEPHINE ANGE GARDIEN SECTION DE RECHERCHE FRENCH DRAMA - H record REALITY TV - H record MIN INSIDE 2010 FIFA WORLD CUP WEATHER 204,000 AUTOMOTO ,400 UNE FAMILLE EN OR 190, , ,000 UNE SOIREE DE RIRE 400,000 CATCH-UP VIDEOS OF «ENNEMIS JURÉS» ON 10 MAY 1.2 million CATCH-UP VIDEOS OF 7 MAY SHOW WATCHED 18

19 Build on synergies with new media: TF1 is the number one French TV media group on the web French websites audiences in million of Unique Visitor (MUV) TF1 7 th web group TF1 1 st French TV media group on the web TF1 in the lead 1 GOOGLE 34.5 MUV 2 3 MICROSOFT FACEBOOK 25.8 MUV 24.4 MUV +8% GROUPE 1 st at 16.7 MUV MEDIAS BLOGS 1 st at 6.8 MUV 1 st at 9.4 MUV FRANCE TELECOM PAGES JAUNES PPR GROUP TF MUV 19.2 MUV 17.0 MUV 16.7 MUV +7% +8% GROUPE 11.9 MUV 7.5 MUV 4.3 MUV SPORTS VIDEOS YOUTH 2 nd at 3.9 MUV 3 rd at 6.0 MUV 3 rd at 481 kvu 8 9 ILIAD YAHOO! 16.5 MUV 16.2 MUV 10 VIVENDI UNIVERSAL 15.8 MUV +37% July 2009 July 2010 WOMEN NEWS 4 th at 2.2 MUV 11 th at 3.3 MUV Source: NNR Médiamétrie Panel July 2010 «MUV»: Million of Unique Visitors (Internet user) 19

20 FINANCIAL INFORMATION 20

21 Advertising revenue m H H Var. m Var. % Consolidated revenue 1, , % Advertising revenue TF1 channel % Diversification revenue % TF1 Channel % 11.4% Thematic channels in France % Internet France % Eurosport International % Radios % Others ,4% Total advertising i revenue % 21

22 TF1 channel programming costs m Total programming costs One-off sporting events Total programming costs excluding one-off sporting events Entertainment H H Var. m Var. % % ns % % TV dramas / TV movies / Series / Theatre % Sports (excl. one-off sporting events) % News % Movies % Youth % 22

23 Consolidated income statement m Consolidated revenue Total programming costs Total other charges H H Var. m Var. % 1, , % % % Depreciation, amortisations and provisions % Operating profit Operating margin % % pts x Cost of net debt % 6.1% Other financial income and expenses % Income tax expense ns Share of profit/losses of associates Net profit % % 23

24 Cost saving plan m H Programming costs excl. sports events (recurrent savings) Contracts renegotiation Other charges Cost saving plan

25 Outlook for sales (e) Var Consolidated sales 2,365 2,530 +7% Hypotheses: - economic growth - steady household consumption levels - multi-channel share forecast at 94.5% at end

26 TF1 executes strategy as planned Rigorous management: Performance-based organisation system Constantly adapted business model Revitalised subsidiaries Partnerships to secure position in risky, value-added sectors => Controlled costs Additional growth sources linked to technological advances Today our content is everywhere, all the time, in all formats: TV, IPTV, Internet, mobile, connected TV, VOD, etc. Sales potential combining advertising, flat-rate contribution from telecoms operators and additional pay services => More diversified sales Return to profitability 26

27 TF1 present in all markets Pay-to-view television DTT channels Web Unencrypted television VOD and SVOD LCI Radio Mobile IPTV MyTF1 27

28 APPENDIXES 28

29 Consolidated revenue evolution by activity m H H Var. m Var. % France Broadcasting , % TF1 Channel % Téléshopping group % 7.2% Thematic channels in France % TF1 Entreprises % In-house production companies % 3.8% e-tf % Others ns Audiovisual rights % Catalogue % TF1 Vidéo International Broadcasting Other activities % % ns Total revenue 1, , % 29

30 Consolidated operating result evolution by activity m H H Var. m Var. % France Broadcasting x 2.6 TF1 Channel 19.9 Téléshopping group 2.3 Thematic channels in France TF1 Entreprises In-house production companies e-tf1 Others Audiovisual rights Catalogue TF1 Vidéo International Broadcasting Other activities Total revenue x % % ns ns ns ns % ns -16.7% % ns x

31 Consolidated balance sheet ASSETS ( m) 30/06/10 31/12/09 30/06/09 Total non-current assets 1, , ,160.4 Total current assets 2, , , Total Assets SHAREHOLDERS EQUITY AND LIAB. ( m) 3, /06/10 3, , /12/09 30/06/09 Shareholders equity (att. to the Group) 1, , ,327.8 Non-current liabilities Current liabilities 2, , ,571.1 Total shareholders equity and liabilities 3, , , Net cash (+) / Net debt (-)

32 Consolidated cash flow statement million 30/06/10 30/06/09 31/12/09 Operating cash flow before net interest expenses and income tax 132,5 85,0 185,8 Income taxes paid Change in operating working capital requirement Net cash generated by operating activities Net cash generated by investment activities Net cash generated by financial operations 3,0 38,5-3,2-81,1 132,33 42,44-222,7-51,2-61,0 1,9 32,3 23,8 241,9 654,8-325,7 Change in cash position - 151,4-69 6,9 571,0 Cash position at beginning of period Cash position at end of period 566,8 415,4-4,2-11,1-4,2 566,8 32

33 Sound financial structure Payment statement ( m) Bond Confirmed credit facilities 1, , , , , , , , /12/ /12/ /12/ /12/ /06/2010 No financial covenant Credit facilities utilisation rate equals to zero 33

34 Programming cost evolution ANNUAL EVOLUTION OF THE PROGRAMMING COSTS (EXCL. SPECIAL SPORTS EVENTS) 8,0% 6,0% 4,0% 2,0% 00% 0,0% -2,0% -4,0% -6,0% 34

35 A DYNAMIC EVOLUTION OF THE ADVERTISING SECTORS Evol Jan-July 2010 vs. Jan-July 2009 FOOD 22.2% 2% + 6.9% COSMETICS 15.6% % AUTO-TRANSPORT 10.0% % FINANCIAL SERVICES 7.9% % RETAIL 6.3% % HOUSE CLEANING 6.1% % TELECOMMUNICATIONS 5.3% % PUBLISHING HEALTH 4.0% 3.9% % % Ad gross revenue : +13.8% (Jan-July 2010 vs. Jan-July 2009) TOURISM 3.1% % Source: Kantar Media Jan-July 2010 vs. Jan-July

36 Contacts Philippe DENERY CFO : : : pdenery@tf1.fr Christine Bellin Head of Investor Relations : : : cbellin@tf1.fr Edouard Benadava IR Manager : : : ebenadava@tf1.fr Deborah Zub IR Officer : : : dzub@tf1.fr dzub@tf1fr Besma Guizani Coordinator : : : bguizani@tf1.fr fr IR department : : : comfi@tf1.fr TF1 1 quai du Point du Jour Boulogne Cedex France 36