ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Investor Day (December 2017)
23 slides from ProSiebenSat.1 Media's investor day presentation, Dec 6, 2017
Slide 1: Red Arrow Studios
Capital Markets Day – December 6, 2017 PILLAR 2: CONTENT PRODUCTION & GLOBAL SALES RED ARROW STUDIOS Jan David Frouman
Slide 2: Red Arrow Studios
B Red Arrow Studios
Slide 3: Our Vision
OUR VISION BUILD A LEADING GLOBAL CONTENT, TALENT, AND IP COMPANY Content Distribution & Production Sales Talent O&O Channels & Packaging Platforms Generated and owned IP assets 218
Slide 4: Best-in-Class Business
BEST-IN-CLASS BUSINESS WE HAVE BUILT A SIZEABLE PRODUCTION BUSINESS WITHIN 8 YEARS … 21 production companies in 8 countries Global distributors 219
Slide 5: Key Achievements
KEY ACHIEVEMENTS … AND WE CONTINUE TO GROW IN OUR KEY MARKETS AND BUSINESS AREAS Majority investment in all-rights U.S. film distributor Commercial partnership with top U.S. TV production company Multiple contract extensions with key creative partners 220
Slide 6: Our Portfolio Approach
OUR PORTFOLIO APPROACH COMPREHENSIVE APPROACH TO REDUCE VOLATILITY MULTIPLE DIVERSIFIED DIVERSIFIED COMPANIES AND SLATE IN ALL CUSTOMER COUNTRIES GENRES PORTFOLIO 221
Slide 7: Best-in-Class Business
BEST-IN-CLASS BUSINESS WE HAVE BUILT A LEADING MCN WITHIN 4 YEARS … Top 10 8bn Video distributor1) Video views per month1) >1,300 Global creators1) 1) Source: Studio71, Top 10 video distributor in every market Studio71 operates in 222
Slide 8: Key Achievements
KEY ACHIEVEMENTS … AND WE CONTINUE TO GROW IN OUR KEY MARKETS AND BUSINESS AREAS Global original production revenue +100% vs. PY (e.g., Lifeline produced with Dwayne Johnson) Successful acquisition of leading French MCN and rebranding to Studio71 France with TF1 Closing of 8-figure up front media co
Slide 9: Studio71 Future Scale
STUDIO71 FUTURE SCALE DIVERSIFICATION INTO HIGH-MARGIN SEGMENTS Multi-pillar positioning Multiple sources of Branded monetization Media solutions sales Original 40% content Licensing & Margin Merchandising potential YouTube of revenues already ad sales generated outside of YouTube Ad Sales business1
Slide 10: Playbook
PLAYBOOK OUR PROVEN FORMULA Strong Seamless Strong Strong Strategic Exclusive and diversified collaboration partnerships reputation with access to partnerships portfolio across all across digital creators premium with European effect business lines subsidiaries and talents TV content broadcasters In
Slide 11: Strong KPIs
STRONG KPIs WE ARE ALREADY REACHING LARGE GLOBAL AUDIENCES ACROSS ALL CHANNELS … No. of Hours Returning Returning Shows in the No. of int’l productions1) produced shows2) shows’ rate3) catalogue4) sales clients4) 420 1,800 155 61% 955 385 Video distributor No. of web Monthly No. of YouTube Monthly M
Slide 12: Attractive Market
ATTRACTIVE MARKET … ADDRESSING A RAPIDLY GROWING GLOBAL MARKET Content Production 58bn 2016 Branded Content 12-16% CAGR Digital Video Ads 110bn Influencer Marketing 2021E Note: Reflects mid-point of range identified by McKinsey; includes Western Europe, U.S. and Latin America 227 Source: McKinsey an
Slide 13: Market Trends
MARKET TRENDS CONSUMER DEMAND FOR CONTENT HAS FUNDAMENTALLY SHIFTED … TV/ Mobile/ linear non-linear Combine linear and non-linear content Long- form Exploit long- and short-form content Gain scale in digital video ad sales Differentiate in branded content Build scale in influencer marketing Short- F
Slide 14: Need for Differentiation
NEED FOR DIFFERENTIATION … REQUIRING CONTENT PRODUCERS TO FOCUS ON DIGITALLY INTEGRATED OFFERINGS CONTENT DIGITAL BRANDED CONTENT AND PRODUCTION VIDEO INFLUENCER MARKETING Need for Need for Need for expertise across all strong partnerships with premium talent and content forms and advertisers and da
Slide 15: Growth Opportunity
GROWTH OPPORTUNITY AN INTEGRATED PLAYER CAN CAPITALIZE ON THESE MARKET TRENDS AND DYNAMICS 1) 1) Networks Advertisers Clients & broadcasters & brands Long-form Short-form content content Integrated Comprehensive Distribution Talent product offering & IP invest packaging player Monetization Data & ad
Slide 16: Unique Studio Platform
UNIQUE STUDIO PLATFORM RED ARROW STUDIOS FORMS A COMPREHENSIVE SET OF INTEGRATED SERVICES … CONTENT CREATION Licensing & BRAND SUPPORT merchandising Advertising & media sales DISTRIBUTION & IP INVESTMENT Scale of current operations: Small/New Medium Large 231
Slide 17: Actionable Synergies
ACTIONABLE SYNERGIES … BY LEVERAGING OUR EXISTING PORTFOLIO Scale opportunities Description Examples Talent packaging Use existing online talent/IP to create network shows Concept generation Use long-form content to create new digital programs Improved monetization Distribute Studio71 content via Re
Slide 18: Acquisition Platform
ACQUISITION PLATFORM WE BUILD ON A PROVEN M&A STRATEGY AND WILL FURTHER DRIVE CONSOLIDATION … 2014-2018 2012-2013 Continued optimization of portfolio with new digital strategic partnerships and selective acquisitions 2010 Strategic focus on mature businesses and key TV markets (USA & UK) Established
Slide 19: M&A Pipeline
M&A PIPELINE … BY PURSUING AN ACTIONABLE PIPELINE OF STRATEGIC INVESTMENT OPPORTUNITIES … M&A areas Target criteria Potential targets Development and Distribution & IP investment production companies Social media Content production platforms Strategic & Management Scale & High quality operational &
Slide 20: Recent Investments
RECENT INVESTMENTS … TO INCREASE PERFORMANCE IN OUR KEY BUSINESS AREAS Distribution & Content IP investment production 235
Slide 21: Partner Evaluation Universe
PARTNER EVALUATION UNIVERSE FUTURE VALUE CREATION EXISTING MID-TERM STRATEGY ASSESS PRIVATE BUILD ON EXISTING ASSESS EQUITY PARTNERS EUROPEAN MEDIA COMPLEMENTARY WITH STRONG ALLIANCE STRATEGIC INDUSTRY TRACK PARTNERSHIPS PARTNERS RECORD/ASSETS 236
Slide 22: Three Things to Remember
THREE THINGS TO REMEMBER Launch of Large Strong Red Arrow addressable M&A Studios global market pipeline Continued Combining EUR 58bn in 2016, conversations with BEST-IN-CLASS growing at 12-16% POTENTIAL businesses per annum PARTNERS 237
Slide 23: Disclaimer
DISCLAIMER This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objecti