3

Turnover - 1st Half 2020: €200.7m

2019 pro forma: €462.2m

EBITDA - 1st Half 2020: €15.1m, up from previous period 2019 pro forma*: €40.4m

Available cash: €92M**

Equity: €89m

970 employees in 11 countries

*Integration of ex-Mondadori France assets as at 1-01-19

4

** Available cash + State-guaranteed loan of €23m in July 2020

spend: €4.10

BtoC

BtoB

€9.6 million in MRR *

subscribers

2.3 million subscribers paying for our content Average monthly

The leader in thematic media in France with 45 proprietary brands

13m unit sales per month - 21.5m UV/month

10m points of contact/day ** via our print, video, audio and TV content

€1.6bn annual turnover generated by our customers in Europe via our technologies

* Monthly Recurring Revenue

5

** Internal source

Reworld Media operates under a disruptive model, both BtoC and BtoB, that takes advantage of new trends in content consumption and technologies

BtoC

Content

All formats - all media

and Service Sales

H1 2020 turnover: €122m

Pro forma 2019 turnover: €278m

52%

48%

Abonnements

Ventes à l'acte

BtoB

Audience monetisation

Performance - Brand content

Programmatic advertising

H1 2020 revenue: €79m

Pro forma 2019 revenue: €184m

21% AdTech (Perf/Programmatique)

79%

Premium

6

*Integration of ex-Mondadori France assets as at 1-01-19

BtoC

More than 1,000 hours of TV programmes

5 channels

500 podcast productions

5 million listeners/month

25,000+ proprietary videos

OCT 2020

JUNE 2020

80 million views/month (1)

More than 850,000 text content items

on over 20 topics

H1 2020 turnover: €122m / 2019 pro forma turnover*: €278m / €9.6m MRR / 13M sales acts per month(2)

(1) Centrics site - (2) OJD and internal

7

*Integration of ex-Mondadori France assets as at 1-01-19

BtoC

How to increase the average spend and build loyalty in retail customers…

Travel offers

Subscription Podcast listening platform

Legal assistance and real estate

New in Oct 2020!

search services

Training

Subscription-based thematic TV channels

Educational content sales

TELEVISION

8

BtoB

  • Cutting-edgetechnologies integrated into our Performance business, with
    • 20 years of expertise, 250 experts, 15 sites in Europe
    • an unparalleled network of 180,000 affiliate sites
    • 2,000 customers, affiliation programmes in more than 80 countries
  • Hypercontextual targeting solutions developed, proprietary tools enabling ad turnover optimisation by format
  • KPI optimisation for advertisers at controlled costs

Qualified audience monetisation developing into technological automation

H1 2020 turnover: €79m / 2019 pro forma turnover*: €184m / €1.6 billion in annual turnover generated

9

BtoB

2 billion advertising spaces sold in 2020 each month

Print Division

Audiences - Readers

7.8 M6.3 M8.9 M15 M7 M

Digital audiences (UV)

6 M

7 M

5.2 M

8.3 M

4.6 M

Unit sales

1st online

1st online

Unit sales

Unit sales

+20%

editorial offer

editorial

+27%

X3

in automotive

for 1 year

offer

for 1 year

for 1 year

news

in Health

Sources: One Next Global print & reading 30D - MNR June 2020

4 M

0.4 M

Unit sales

X2

for 1 year

10

One Next Global 2020 Biba, Marie France, Modes & Travaux, Nous Deux / MNR June 2020 = Grazia, Biba, Marie France, Modes & Travaux, Nous Deux, Vie Pratique féminin, Be

An intense production and content diversification dynamic

  • 10 new sites / redesigns in 6 months
  • 2 new media brands, 3 new print packages
  • 150 Live programmes on the social media
  • Reworld Media TV: 4 thematic channels launched bringing the number of channels in the Group to 6
  • 15 new podcast programmes and proprietary platform launched
  • Surge in BtoC customer offer development

Sharp audience growth

  • Record-highaudience of 20.5 million UV in April (+30% vs Y-1)

12

Integration of Mondadori France assets successfully completed

  • A very favourable change in the digitisation programme

Audiences*: Biba +456%, Pleine Vie +438%, Auto Journal +167%, Science & Vie +136%, Auto Plus +70%, etc.

  • Grazia brand restructured (last brand significantly exposed to Print advertising)
  • Move to Boulogne and Bagneux sites completed (in September)
  • Publication uninterrupted

And,

French press distribution network reorganised for efficiency

€33 million in financing secured (€23 million in State-guaranteed loan and €10 million in BPI Atout Loan)

* Source: One Next Global V2

13

Consolidated turnover* at 30/06/20: €200.7m

Multiplied by a factor of 2.3 compared to H1-2019

Scope effect: integration of ex-Mondadori assets at 1st August 2019

  • BtoC turnover: €122.2m

Subscriber portfolio recurrence over entire scope

  • BtoB turnover: €78.5m

Low exposure to print advertising (5% of Groupturnover)

The Performance business is not exposed to the crisis (28% of Group sales)

Change in consolidated turnover as at 30/06/20 (€m)

200,7

86,5

30/06/2019 30/06/2020

Consolidated Consolidated

Consolidated EBITDA* at 30/06/20: €15.1m

Multiplied by a factor of 5 compared to H1-2019

  • Profitability doubled to 7.6% of turnover vs 3.6% in H1-2019

Scope effect: integration of ex-Mondadori assets at 1st August 2019

Change in consolidated EBITDA as at 30/06/20 (€m)

15,1

3,1

30/06/2019 30/06/2020

Consolidated Consolidated

14

Consolidation of ex-Mondadori France assets as at 1-08-19

A controlled decline in turnover in the 1st Half despite the deteriorated economic context

€200.7m in turnover in the 1st half-year,-13% vs 2019 pro forma*

  • Digital turnover €68.5m: Digital division turnover demonstrated high resilience, at -3%
    Digital Branding accounted for 20% of Group sales vs. Performance at 80%
  • Print turnover €132.2m: in the deteriorated context of the 1st half-year, the Group was able to curb the decline in Print turnover, -17%
    • Print advertising -48% : now only represents 5% of Group's revenue
    • Subscriptions and retail: -12% limited decrease, despite the impact of restructuring in the distribution network

24% of turnover is earned internationally

Change in pro forma half-year turnover (€m)

230,2

Print turnover

Digital turnover:

159,6

200,7

Total

132,2

70,668,5

30-June-1930-June-20

15

* Integration of ex-Mondadori France assets at 1/01/19 ** Digital: Digital and Diversification

In a heavily deteriorated environment, the Group managed to grow its profitability in the 1st Half of 2020 to €15.1m (+3%)

  • Growth in profitability enabled by the good integration of ex- Mondadori assets and the good management of variable costs in the 2nd quarter of 2020
  • €2.4m EBITDA digital (+4% vs H1-2019) : stable digital profitability rate at 3% > investments maintained in this strategic activity in favour of the group's development
  • Increase in margin to 7.5% vs 6.4% in H1-2019

Change in half-year pro forma EBITDA (€m)

14,7

12,7

Print EBITDA

12,4

15,1

Digital EBITDA**

Total

2,32,4

30-June-1930-June-20

Consolidation of ex-Mondadori France assets as at 1-01-19

16

** Digital: Digital and Diversification

In €M*

30/06/2020

31-12-19

EBITDA

15.1

29.6

Cash impact

5.0

-7.4

Operating flows

20.1

22.2

Exceptional items

-15.3

-23.7

Operational flows

4.7

-1.5

Capex

-2.5

-4.0

Capital increase

0.9

20.9

Financing

11.5

66

Acquisition

0.4

-51.4

Entry into scope

6.8

Cash flow generation

14.8

37.0

State-guaranteed loan received in July

23.0

2020

Cash flow generation with State-

37.8

37.0

guaranteed loan

€20.1 million in cash generated by operating flows in 1st half 2020

  • Favourable cash effect stemming from payment adjustments enabled by the health crisis
  • €15 million in exceptional items due mainly to the liquidation of Presstalis and the restructuring of the Grazia brand
  • €11.5 million in financing:

€10 million ATOUT BPI loan secured (PGE of €23 million in July 2020) Loan repayments delayed

Consolidation of ex-Mondadori France assets as at 1-08-19

17

In €M*

30/06/20

30/06/201

Change

20

9

Turnover

200.7

86.5

x2.3

Operating costs

185.6

83,4

EBITDA

15.1

3.1

x5

Depreciation

-1,9

-1.6

EBIT

13.2

1.5

x8.8

Financial results

-1.4

-0.9

Exceptional income

-20.3

-0.5

Taxes

9.0

0.2

Reversal of goodwill

-0.1

-0.1

Consolidated net income

0.4

0.2

x2

Minority interests

-0.2

-0.1

Net income Group share

0.6

0.1

x6

  • More than €13m in EBIT vs. €1.5m in Y-1
  • Financial result: €-1.4m, including interest on bank loans
  • Exceptional income of -€20,3mconsisting primarily of Presstalis and the restructuring of the Grazia brand
  • Taxes: accounting valuation of ordinary losses
  • Net income slightly up at €0.6m

Consolidation of ex-Mondadori France assets as at 1-08-19

18

A cash and debt position under control:

In €M*

30/06/2020

31-12-19

• Stronger cash position to €92m

Gross cash

92.0

54.0

• Net debt as at 30/06/2020: €39,8m

Financial debts

131.8

96.0

A €10 million ATOUT loan with a 5-year term was received

Net cash and cash

-39.8

-42.0

from BPI and a €23 million State-guaranteed loan from the

equivalents

banking pool

Renegotiations resulting in banking terms favourable to the

group

• Debt leverage less than 1x EBITDA

Solid equity as at 30/06/2020: €89.3m

* Consolidated financial statements as at 30/06/20 and receipt of €23m in State-guaranteed loan financing in July

19

2020

Distribution of capital as at 31/08/2020

21%

42%

21%

16%

Management

Institutional investors

Arnoldo Mondadori Editore SPA

Floating

ALREW - FR001082027

Number of shares: 51,816,696

Euronext Growth since 16 June 2014

Bloomberg: ALREW FP

Share price:

At 15/09/20: €2,55

Market capitalisation

€132m

High - 12 months

€ 2.99

Low - 12 months

€ 1.50

Average volume - 12 months

36 034 shares

20

Continuing to seek external growth on substantial targets in the content sectors, subscriber base and

technology solutions 1 billion in turnover

BtoC

Content/Services

H1 2020 turnover: €122m

2019 proforma turnover*: €278m

  • Increased content and service offerings guaranteed by our media brands

- Increase in subscriber numbers and fee-for-

service sales

  • Increase in average spend
  • Strong ambitions to step up MRR, building from the current €9.6m

BtoB

AdTech

H1 2020 turnover: €79m

2019 pro forma turnover*: €184m

> Technological developments

  • Developing advertising inventory, currently at 2bn / month
  • New monetisation formats
  • Consolidating our performance business

22

Intergration of ex-Mondadori France assets as at 1-01-19

BtoC

BtoB

Sale of content/services by subscription

Adtech

or by act

H1 2020 turnover: €122m

H1 2020 turnover: €79m

2019 proforma turnover: €184m

2019 proforma turnover: €278m

23

Intergration of ex-Mondadori France assets as at 1-01-19

  • A group with an entrepreneurial culture, true to its DNA from the outset
  • Teams headed by 20 manager-entrepreneurs, experts in their fields
  • A united team of managers, who hold 28% of the Group's capital (fully diluted)
  • The support of prominent figures including Fleur Pellerin, member of the Board of Directors, and Cédric O, Secretary of State responsible for the Digital Transition and Electronic Communication
  • A group driven by core values: Audacity, Creativity, Innovation, Entrepreneurship, Passion and Performance
  • Actively recruiting new talents, while also offering training and support initiatives for young entrepreneurs
  • Support for entrepreneurship
    Reworld Media, partner of "50 Impact" and the annual forum "Be a boss" (2015)
  • Training and support for young talent by Reworld Media Campus (May 20) Bachelor Communication/Media Content Manager, Level 6 degree registered with the RNCP. One year of work-studytraining within the Group
  • Support for talented corporate projects via Reworld Media Ventures
  • Development that fosters the digital transformation of regional SMEs with Reworld Media Proximité (June 20)

A la carte access to the Group's resources: marketing, training, all-content production, etc.

  • Group publications printed using

processes based on recyclable paper from eco-responsibleparks

  • Latest CSR news:
    Solidarity with Lebanon
    Spaces provided free of charge to support organisations in the Group's publications
  • A few indicators

Social

Permanent staff: 95%

Employee turnover: 20%

Gender balance: 45% women at the Group and 40% on the Management Committee Absenteeism rate: 7%

Governance

Board of Directors with 2 independent members out of 4

25

CONTACTS

REWORLD MEDIA

8 rue Barthélémy Danjou

92100 Boulogne Billancourt

investisseurs@reworldmedia.com

Sponsor listing

Communication

Euroland Corporate

Contact: PCE - Ségolène de St Martin

Contact: Julia Bridger

sdestmartin@p-c-e.fr

jbridger@elcorp.com

Attachments

  • Original document
  • Permalink

Disclaimer

Reworld Media SA published this content on 22 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2020 09:39:06 UTC