ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — FY2002 Earnings Presentation
27 slides from ProSiebenSat.1 Media's earnings presentation, Feb 19, 2003
Slide 1: Company Presentation ProSiebenSat.1 Media AG: Preliminary Figures 2002
Company Presentation ProSiebenSat.1 Media AG Preliminary Figures for the Year 2002 Unterfoehring, 19 February 2003
Slide 2: Agenda
Agenda 1. Leading position in the core business advertising funded television - Audience shares - TV advertising market - The branding of ProSiebenSat.1 Group‘s channels 2. Preliminary financials for the year 2002 3. Appendix 2
Slide 3: Agenda
Agenda 1. Leading position in the core business advertising funded television - Audience shares - TV advertising market - The branding of ProSiebenSat.1 Group‘s channels 2. Preliminary financials for the year 2002 3. Appendix 3
Slide 4: The two main commercial TV groups dominate the audience market by more than 60%
The two main commercial TV groups dominate the audience market by more than 60% Market shares based on viewers aged 14-49, 3 a.m.-3 a.m. 33.2% 2.2 30.3% 29.8% 4.8 30.1% 28.6% 2.4 2.1 28.1% 0.4 4.3 6.3 5.2 4.7 5.0 5.0 5.7 11.6 5.4 10.8 11.1 19.9 17.9 17.6 13.3 12.0 12.4 8.9 9.3 8.7 7.7 8.3 8.0 2001 2
Slide 5: Audience share development in 2002 influenced by Winter Olympics and World Cup
Audience share development in 2002 strongly influenced by Winter Olympics and Soccer World Cup 35 30 25 Viewers 14-49 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2002 ProSiebenSat.1 Group 29,5 28,1 29,8 29,3 27,3 25,4 26,9 26,5 27,9 29,1 29,1 27,1 ProSiebenSat.1 Group ARD 8,5 1
Slide 6: In 2002, ProSieben again underlines its clear movie competence
In 2002, ProSieben again underlines its clear movie competence Position Channel Titel Market share in Audience reach in % mio. viewers 1 Independence Day 40.9 6.30 2 Men in Black 36.8 5.96 3 Star Wars: Episode I – The Phantom Menace 39.4 5.79 4 The Sixth Sense 34.0 5.58 5 The Green Mile 41.7 5.28 6
Slide 7: In 2002, the German TV advertising market shows a decline for the second consecutive year
In 2002, the German TV advertising market shows a decline for the second consecutive year Net TV advertising in Germany (in € billion) +9% 4.7 -7.2% -8% to –10% 4.3 4.4 4.0 4.0 3.8 3.5 20.2% 20.6% 20.4% 3.2 19.3% 19.3% 19.8% 2.9 18.4% 2.5 17.4% 2.2 16.6% 15.1% 13.8% 1992 1993 1994 1995 1996 1997 199
Slide 8: ProSiebenSat.1 Group continues to hold biggest share in TV gross advertising market
ProSiebenSat.1 Group continues to hold biggest share in TV gross advertising market in the year 2002 Total TV gross advertising market share 2002 2001 2000 SAT.1 ProSieben Kabel 1 45.4% 45.6% 45.0% N24 RTL RTL II VOX 41.9 % 41.2% 39.3% SuperRTL ARD 2.6% 3.0% 3.4% ZDF 2.1% 2.6% 2.9% Others 8.0% 7.5%
Slide 9: Development of the German gross advertising market in 2002
Development of the German gross advertising market in 2002: TV slightly outperforms general advertising market 2002 2001 Change in % in Euro mio in Euro mio Total 16,373.0 17,129.0 -4.4 TV 7,248.8 7,566.4 -4.2 Newspaper 3,512.4 3,618.0 -2.9 General interest print 3,849.4 4,147.6 -7.2 Special interes
Slide 10: Development of the top industries in German TV advertising and in ProSiebenSat.1 Group
Development of the top 10 industries in German TV advertising and in ProSiebenSat.1 Group in 2002 Advertising industries Change in gross advertising investments 2002 vs. 2001 in TV advertising % ProSiebenSat.1 Group Food -6.6 -6.0 Personal Care 19.1 37.4 Beverages -7.7 -7.2 Transport 6.5 1.4 Finance
Slide 11: ProSiebenSat.1 Group benefits from the complementary programming of its channels
ProSiebenSat.1 Group benefits from the complementary programming of its different channels International Classic international Documentaries and German content blockbuster feature series and feature news films films “The Broadcaster for “The best movies of all “Become an “Young Quality TV“ the entir
Slide 12: Agenda
Agenda 1. Leading position in the core business advertising funded television - Audience shares - TV advertising market - The branding of ProSiebenSat.1 Group‘s channels 2. Preliminary financials for the year 2002 3. Appendix 12
Slide 13: Declining advertising market negatively affects revenues and pre-tax result
ProSiebenSat.1 Group: declining advertising market negatively affects revenues and pre-tax result Revenues Pre-tax profit in mio Euro in mio Euro 2,015 1,895 106 -120 100 2000 (-5.9%) 1800 80 1600 60 -85 1400 40 (-79.7%) 21 1200 20 1000 2001 2002 0 2001 2002 Pre-tax profit margin: 2001: 5.2%; 2002:
Slide 14: Reduced level of EBIT and EBITDA due to weak advertising demand
ProSiebenSat.1 Group: reduced level of EBIT and EBITDA due to weak advertising demand EBIT EBITDA in mio Euro in mio Euro 200 225 240 175 154 200 150 -91 125 160 134 -81 (-40.3%) 100 120 (-53.0%) 73 75 80 50 40 25 0 0 2001 2002 2001 2002 14
Slide 15: Channels proceed with cost management
Channels proceed with cost management Total costs in mio Euro -39.8 1.000 922.8 883.0 -40.1 800 2001 645.1 605.0 600 2002 400 +6.2 +18.4 200 177.8 184.0 105.3 123.7 0 ProSieben Sat.1 Kabel 1 N24 Basis: Without World Cup in Soccer 2002, Source: Program Controlling and Corporate Strategy 15
Slide 16: Overview of the channels' business activities in 2002
Overview of the channels‘ business activities in 2002 § ProSiebenSat.1 Group continues to hold biggest share in the TV gross advertising market with 45.4% § ProSieben: decline in pre-tax profit significantly lower than decline in revenues due to tight cost management § Sat.1: leaving apart costs for
Slide 17: Concentration on core business activities will continue
Concentration on core business activities will continue § Further optimization of Sat.1 § Strengthening of weekend programming § Improvement of access prime time programming § Increased profitability of programming mix § Repositioning and further cost reduction of N24 § New focus on documentaries si
Slide 18: ProSieben: pre-tax profit margin of over 26% despite difficult market
ProSieben: channel achieves a pre-tax profit margin of over 26% despite difficult market conditions Revenues Pre-tax profit in mio Euro in mio Euro 900 860 300 -82 262 778 (-9.5%) 750 250 -56 (-21.3%) 206 600 200 450 150 300 100 2001 2002 2001 2002 Pre-tax profit margin: 2001: 30.5%; 2002: 26.5% 18
Slide 19: Sat.1: World Cup expenses burden the channel's result
Sat.1: high expenses for rights and production of the Soccer World Cup burden the channel‘s result Revenues Pre-tax result in mio Euro in mio Euro 900 831 -54 777 -20 (-6.5%) 750 -45 600 -70 -77 -21 450 (-27.2%) -95 -98 300 -120 2001 2002 2001 2002 19
Slide 20: Kabel 1: lower pre-tax profit due to higher program investments
Kabel 1: lower pre-tax profit due to higher program investments Revenues Pre-tax profit in mio Euro in mio Euro 250 100 215 -19 196 200 (-8.5%) 80 150 60 100 34 40 50 -22 20 (-64.0%) 12 0 2001 2002 0 2001 2002 Pre-tax profit margin: 2001: 15.8%; 2002: 6.1% 20
Slide 21: N24: increase in pre-tax result of more than 36%
N24: channel achieves increase in pre-tax result of more than 36% Revenues Pre-tax result in mio Euro in mio Euro 100 95 0 28 67 75 -10 (42.0%) 50 -20 14 -24 25 -30 (-36.5%) 0 2001 2002 -40 -38 2001 2002 21
Slide 22: Business segment Merchandising: double digit growth of revenues and operating profit
Business segment Merchandising: double digit percentage growth of revenues and operating profit Revenues Operating profit in mio Euro in mio Euro 100 25 7 73 20 75 2 17 66 15 (10.7%) 15 (15.5%) 50 10 25 5 0 0 2001 2002 2001 2002 Operating profit margin: 2001: 22.7%; 2002: 23.3% 22
Slide 23: ProSiebenSat.1 Group's P&L for 2002
ProSiebenSat.1 Group‘s P&L for 2002 2002 2001 Changes Changes [mio Euro] [mio Euro] [mio Euro] [%] 1. Revenues 1.895,1 2.014,8 -119,7 -5,9 2. Other operating income 115,7 78,2 37,5 48,0 3. Programming and material costs 1.378,4 1.399,3 -20,9 -1,5 4. Personnel expenses 215,9 209,0 6,9 3,3 5. Amortiza
Slide 24: Selected preliminary key financial figures for 2002
Selected preliminary key financial figures of ProSiebenSat.1 Group for 2002 Change Change 2002 2001 in mio Euro in % Programming investments [mio Euro] 925.8 1,179.9 -254.1 -21.5 Net interest result [mio Euro] -53.3 -50.6 -2.7 -5.3 Net financial debt including bonds [mio Euro] 753.7 896.8 -143.1 -5.
Slide 25: Agenda
Agenda 1. Leading position in the core business advertising funded television - Audience shares - TV advertising market - The branding of ProSiebenSat.1 Group‘s channels 2. Preliminary financials for the year 2002 3. Appendix 25
Slide 26: Corporate history of ProSiebenSat.1 Media AG
Corporate history of ProSiebenSat.1 Media AG 2001 Acquisition of 48.4% stake in Euvía Media 2000 Merger of ProSieben Media and Sat.1 (completed on 2 October) 2000 N24 goes on air (24 January) 1997 IPO ProSieben Media AG 1996 Expansion into new markets: multimedia, merchandising, viewers’ club 1995 A
Slide 27: Current shareholder structure of ProSiebenSat.1
Current shareholder structure of ProSiebenSat.1 Shareholders Equity Ordinary Shares Preference Shares KirchMedia * Axel Springer Verlag ** Free Float 52,52% 88,52% 16,52% 11,48% 11,48% 11,48% 36,0% – 72,0% * 36% of capital, i.e. 72% of ords held directly 16.52% of capital, (16.52% ords / prefs) held