Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q2 2019 Earnings Presentation
37 slides from Prosiebensat.1 Media's earnings presentation, Aug 7, 2019
Slide 1: Q2/H1 2019 Results Presentation
ProSiebenSat.1 @E MediaSE August 7, 2019 Q2/H1 2019 RESULTS PRESENTATION
Slide 2: Strategy & Business Update, Financial Update, Closing Remarks
84 STRATEGY & BUSINESS UPDATE Ny MAX CONZE - GROUP CEO i) FINANCIAL UPDATE RAINER BEAUJEAN - GROUP CFO 2 4 CLOSING REMARKS yt MAX CONZE - GROUP CEO ProSiebenSat.1 MediaSE
Slide 3: Strategy & Business Update
Q2/H1 2019 STRATEGY & BUSINESS UPDATE & MAX CONZE - GROUP CEO
Slide 4: Strategic Priorities
STRATEGIC PRIORITIES RECAP: TRANSFORMATION AGENDA & OUR STRATEGIC PRIORITIES Al l 1 Growth Build a future-fit Entertainment and Commerce champion; accelerate organic revenue growth while investing for future total shareholder return Local Content Push local content ensuring more live, more local, mo
Slide 5: Strategic Priorities: Q2 Progress
STRATEGIC PRIORITIES: Q2 PROGRESS Q2 WITH STRONG PROGRESS IN EXECUTING OUR TRANSFORMATION Al Q2 Progress 1] Growth Transformation on track delivering Group revenue growth of +4% and Group adj. EBITDA Y as expected due to investments into a future-fit business o——— 2 Local Best Q2 TV audience share s
Slide 6: Growth: Valuable and Synergistic EUR 4bn Plus Portfolio
1| GROWTH A VALUABLE AND SYNERGISTIC EUR 4BN PLUS PORTFOLIO WITH WELL DIVERSIFIED GROWTH DRIVEN BY MARKET LEADING ASSETS P7S1 REVENUES RED ARROW STUDIOS” RED ARROW STUDIOS 88m +20% W Red Arrow Studios STUDIO71 60m +41% A Stuvion ProSiebenSat.1 Media SE [REVENUES REPORTED; Q2; IN EUR M, GROWTH IN %]
Slide 7: Organic and Reported Group Revenue Growth +4%
1| GROWTH ORGANIC AND REPORTED GROUP REVENUE GROWTH +4% Al Q2 Q2 H H1 H1 ORGANIC REPORTED i ORGANIC REPORTED GROUP REVENUES +4% +4% +4% +4% ENTERTAINMENT REVENUES “1% “4% “2% -6% TV core advertising 3% H -4% Digital & smart advertising +26% i +20% RED ARROW STUDIOS REVENUES +21% +28% +26% +33% COMME
Slide 8: Local Content
2 | LOCAL CONTENT THE MASKED S MIT) BEST.TV fm Pr * SHOW START SINCE 2011 al ONLINE VIDEO vtte oe LINEAR TV THE FINAL 38.1% TV AUDIENCE SHARE (A 14-49)?) 928.2% TV AUDIENCE SHARE (14-49) ® > « J ; A A 4) Total show 06/27-08/04/2019, incl, JOYN, TVC (Web, App, Smagf TV and! {7TV (Smart TV), Syndicati
Slide 9: TV Audience Share
: * 015.2% TV AUDIENCE SHARE. = (A147 r. v LATE NIGHT a BERLIN = mi 520.8 cae ~40% : ame tare TVV DIGITAL SHARE? +15% GROWTH OF DIGITAL ' 921.9% MAGAZINE SHARE, f Pe end ey TV. AUDIENCE SHARE BS VS. H1 2018 - : — (A14-29)?) 016.5% TV AUDIENCE SHARE (A 14-29)? | art TV), Syndication (Glomex) and YouT
Slide 10: Local Content
2 LocAal CONTEN fcl.new formats and new seasons of existing fortiat a tt (oe \ et
Slide 11: Digital Attack: JOYN Launch
3 | DIGITAL ATTACK: JOYN SUCCESSFUL LAUNCH OF OUR STREAMING PLATFORM Al JOYN IN JUNE 2019 55 J yn #joynthejourney LIVE CHANNELS AT LAUNCH 5 ORIGINALS WITH JERKS AND LAUSEMUTTER @ aim ee GQ >40 FORMATS AVAILABLE 7 DAYS PRE-TV AIRING 30 DAY LIBRARY FUNCTION ~20,000 EPISODES FREEMIUM FREE AD-BASED AS 1
Slide 12: Digital Attack: JOYN Uptake
3 | DIGITAL ATTACK: JOYN SUCCESSFUL UPTAKE OF JOYN PLATFORM ACROSS VIEWERS STRONG KPIS SINCE LAUNCH” | 524m P| I sm MONTHLY UNIQUE USERS (AGOF)?) I 53.8m | ACTIVE USERS bh 61% SHARE MOBILE USAGE (VS. WEB)” INSTALLS 47% LIVE TV SHARE vs. VOD» al IETS ATO $15 F20 - Mit voll © ProSiebenSat.1 MediaSE 1)
Slide 13: Smart Reach: How We Monetize Our Reach
4 | SMART REACH HOW WE MONETIZE OUR REACH Al SMART REACH WELL ON TRACK FOR ADDRESSABLE ADVERTISING ADDRESSING INDIVIDUAL AUDIENCES BASED ON DATA INSIGHTS ADDTV SPOT WITH ANNOUNCEMENT CROSS-DEVICE 19 GEO-CAMPAIGNS OF JV D-FORCE BRIDGE IN Q2 FOR ONE DSP SOLUTION we @ 0 SOCIODEM GEO PURCHASE APRILJUNE
Slide 14: Red Arrow Studios
5 | RED ARROW STUDIOS STRONG Q2 AND H1 FOR RED ARROW STUDIOS | 426% | +33% Hi ORGANIC Hi REPORTED REVENUE GROWTH REVENUE GROWTH _ WaURER. ““BEARDY \ \ RED ARROW STUDIOS @ VIENNA\BLOOD Successful international productions e.g. Jailbirds by 44Blue for Netflix STUDIO71 71) @ XN Double-digit revenue gro
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Slide 16: Clear Synergy Case for NuCom Group and Entertainment
CLEAR SYNERGY CASE FOR NUCOM GROUP AND ENTERTAINMENT @ y SERVE N\ VA / CONSUMER NEEDS \ " LEVERAGE MEDIA POWER: LARGEST SOM CUSTOMER NUCOM DRIVE DIGITAL AND CULTURAL ENTER- GROUP | TRANSFORMATION TAINMENT. ° EXPLOIT CONSUMER DATA (E.G. NETID) ° X \ FUEL NEW BUSINESS y \ ‘MODELS AND A x SYNERGIES y B
Slide 17: One Company
ONE COMPANY STRONG PROGRESS ON OUR TRANSFORMATION AGENDA FROM Al CRITICAL CAPABILITIES TO ORGANIZATIONAL SET-UP TOP LEADERSHIP Leadership team with CFO Rainer Beaujean as of 07/2019 and TEAM CTO Nick Thexton since 06/2019 completed and operational CRITICAL Strong push of building capabilities from t
Slide 18: Financial Update
Q2/H1 2019 FINANCIAL UPDATE
Slide 19: Financials: Group P&L
FINANCIALS Group P&L [in EUR m] Q2 2019 Q2 2018 YoY H12019 —-H12018 YoY Ext. revenues 947 912 +4% 1,860 1,794 +4% Organic 910 878 +4% 1,796 1,734 +4% Adj. EBITDA 213 259 18% 403 459 12% Sroup revenue growth in quarters, deconsolidation Adj. net income” 85 136 -38% 179 230 -22% of maxdome, 7NXT and o
Slide 20: Financials: Entertainment Revenues and Adjusted EBITDA
FINANCIALS External revenues and adjusted EBITDA [in EUR m] Q2 2019 Q2 2018 YoY H12019 —-H12018 YoY Ext. revenues 601 628 -4% 1180 1,252 6% Organic 599 604 1% 1177 1,205 2% Advertising 516 525 -2% 1,024 1,051 3% on revenue TV core i ~ 477 494 “3% 954 994 4% OMING) EVENS advertising ° ° of other prod
Slide 21: Q2 2019 Operational KPIs Entertainment
FINANCIALS Q2 2019 OPERATIONAL KPIS ENTERTAINMENT @ AUDIENCE/ TV AD ADVERTISING VIEWING TIME MARKET SHARE SHARE OTHER vee wieD Audience share?) WEG CATE) | HD subscribers*) viewtime” revenue share?) | Total daily TV Gross TV advertising consumption (AGF)? market share® oa min vs. 256bn min in Q2 201
Slide 22: Financials: Content Production & Global Sales
FINANCIALS External revenues and adjusted EBITDA [in EUR m] Q2 2019 Q2 2018 YoY H12019 —-H12018 YoY Ext. revenues 148 16 +28% 283 214 +33% Organic 148 122 +21% 283 225 +26% Production 76 62 +22% 140 108 +30% Global Sales 12 1 +11% 34 32 +7% Studio71 60 43 +41% 109 74 +47% 17 13 +28% Adj. EBITDA 9 9
Slide 23: Q2 2019 Operational KPIs Content Production & Global Sales
FINANCIALS Q2 2019 OPERATIONAL KPIS CONTENT PRODUCTION & GLOBAL SALES V@ # of hours produced” vs. 65 in Q2 2018 vs. 4.2k in Q2 2018 Monthly # of YouTube | Monthly minutes video views?) subscribers?) watched?) | # of web channels?) a 1.4k 9.7bn 1.4bn 45bn vs. 1.3k in Q2 2018 vs. 8.9bn in Q2 2018 vs.
Slide 24: Commerce: Consumer Advice, Matchmaking, Experiences
• Consumer Advice • Matchmaking Experiences • Beauty & Lifestyle Other •
Slide 25: Q2 2019 Operational and Financial KPIs Commerce
FINANCIALS Q2 2019 OPERATIONAL AND FINANCIAL KPIS COMMERCE MATCHMAKING?) EXPERIENCES al BEAUTY & LIFESTYLE # of orders CONSUMER ADVICE” | # of transactions” | # of registrations +144% 1.2m vs. 0.5m in Q2 2018 | # of transactions® 0.8m vs. 0.6m in Q2 2018 Ext. revenues in EUR Ext. revenues in EUR Ext
Slide 26: FY 2019 Targets
FINANCIALS FY 2019 TARGETS Al FY 2019 COMMENTS mid single-digit * Group revenue growth to benefit from dynamic growth GROUP REVENUES Increaze (o of non-TV advertising businesses offsetting TV core ad revenue decline * Visibility of TV advertising business remains low, every +/A%pt TV ad market chang
Slide 27: Closing Remarks
ProSiebenSat.1 @E MediaSE AUGUST 07, 2019 CLOSING REMARKS a Be MAX CONZE - GROUP CEO
Slide 28: Closing Remarks: Three Things to Take Away
CLOSING REMARKS THREE THINGS TO TAKE AWAY Al ~) ProSiebenSat.1 Media SE Transformation on track delivering Group revenue growth of +4%, local content paying off, digital growing and driving diversification Confident about H2 2019 with strong local content line-up, promising content production pipeli
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Slide 30: Appendix
Q2/H1 2019 APPENDIX
Slide 31: Group P&L
GROUP P&L [in EUR m] Q2 2019 Q2 2018 YoY H1 2019 H1 2018 YoY Revenues 947 912 +4% 1,860 1,794 +4% Adjusted EBITDA 213 259 -18% 403 459 12% Reconciling items S) 28 -67% 19 -96 -80% EBITDA 204 230 12% 384 363 +6% Depreciation, amortization and -59 -52 H14% 10 403 47% impairments Thereof PPA 3 2 +4% 25
Slide 32: H1 2019 Operational KPIs Entertainment
H1 2019 OPERATIONAL KPIS ENTERTAINMENT @ AUDIENCE/ TV AD ADVERTISING VIEWING TIME MARKET SHARE SHARE OTHER TV core advertising revenue share» 93% vs. 95% in H1 2018 Audience share?) HD subscribers® viewtime” 6 40bn min Total video | 9.8m vs. 9.2m in H1 2018 vs. 541bn min in H1 2018 | Total daily TV
Slide 33: H1 2019 Operational KPIs Content Production & Global Sales
H1 2019 OPERATIONAL KPIS CONTENT PRODUCTION & GLOBAL SALES Al # of hours produced” | Returning shows” Titles in catalogue 19 vs. 78 in H1 2018 vs. 4.3k in HI 2018 Monthly # of YouTube | Monthly minutes video views?) subscribers?) watched?) | # of web channels?) a 1.4k 9.9bn 1.4bn 44bn vs. 1.3k in H1
Slide 34: H1 2019 Operational and Financial KPIs Commerce
H1 2019 OPERATIONAL AND FINANCIAL KPIS COMMERCE Al CONSUMER BEAUTY & ADVICE” MATCHMAKING?) EXPERIENCES LIFESTYLE | # of transactions®) | # of registrations # of orders | # of transactions® 2.6m os) 1.4m vs. 1.1m in HI 2018 vs. 1.0m in Hi 2018 Ext. revenues in EUR 158m Ext. revenues in EUR Ext. reven
Slide 35: Entertainment Segment Reporting Q1-Q4 2018
ENTERTAINMENT SEGMENT REPORTING Q1-Q4 2018 External revenues and adjusted EBITDA [in EUR m] Q12018 =Q22018 Q32018 Q4 2018 Ext. revenues 624 628 547 827 Advertising 526 525 462 725 TV core 500 494 430 675 advertising Digital & smart 2% 31 31 49 advertising Distribution 34 35 5) 37 Other 64 67 50 65 A
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Slide 37: ProSiebenSat.1 Disclaimer
ProSiebenSat1 This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and _ projections regarding ProSiebenSat.l's or ProSiebenSat.1 Group's financial position, business strategy, plans and ob