Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q1 2015 Earnings Presentation
70 slides from Prosiebensat.1 Media's earnings presentation, May 7, 2015
Slide 1: Q1 2015 IR Presentation
Q1 2015 IR Presentation May 07, 2015 | May 07, 2015 Page 1
Slide 2: Agenda
Agenda 1 Q1 2015 – At a Glance 2 Q1 2015 – Financial Performance Review Q1 2015 – Operational Performance 3.1 Broadcasting German-speaking 3 3.2 Digital & Adjacent 3.3 Content Production & Global Sales 4 Summary & Outlook | May 07, 2015 Page 2
Slide 3: Q1 2015 At a Glance
Q1 2015 At a Glance Thomas Ebeling Chief Executive Officer | May 07, 2015 Page 3
Slide 4: Key financials – Q1 2015
1 2 3 4 Q1 2015 – At a Glance Key financials – Q1 2015 [Q1 2015 vs. Q1 2014, in EURm] Revenues 654.6 +12.7% ✔ Recurring EBITDA 152.7 +9.0% ✔ Underlying net income 69.9 +25.4% ✔ | May 07, 2015 Page 4 Continuing operations.
Slide 5: Continued dynamic growth across all three business segments
1 2 3 4 Q1 2015 – At a Glance Continued dynamic growth across all three business segments Broadcasting Digital & Adjacent Content Production German-speaking & Global Sales Digital Entertainment +21.3% TV Advertising +4.2% Digital Commerce +44.3% Distribution +26.4% Adjacent +12.0% Revenue +EUR 22m +
Slide 6: Major operational highlights in Q1 2015
1 2 3 4 Q1 2015 – At a Glance Major operational highlights in Q1 2015 Best Q1 TV ratings performance in the last nine years ✔ ProSiebenSat.1 with positive ad performance in Q1 ✔ New Digital & Adjacent vertical established: Beauty & Accessories ✔ Growing rate of returning shows, totaling 40% of produ
Slide 7: Well on track to hit our 2018 Group revenue growth target
1 2 3 4 Q1 2015 – At a Glance Well on track to hit our 2018 Group revenue growth target Degree of achievement 53% 51% 126% 59% [Achievement by Q1 2015, 1,000 in EURm] 1.000 800 600 600 593 400 300 37.5% linear projection of CMD target 200 308 126 158 100 0 Broadcasting German-speaking Digital & Adja
Slide 8: We confirm our 2015 segment revenue growth assumptions
1 2 3 4 Q1 2015 – At a Glance We confirm our 2015 segment revenue growth assumptions… Broadcasting Content Production 1 German-speaking 2 Digital & Adjacent 3 & Global Sales Revenues vs. low single- double-digit high single- FY 2014 digit growth growth digit growth | May 07, 2015 Page 8 Continuing o
Slide 9: … and maintain our positive 2015 full-year guidance
1 2 3 4 Q1 2015 – At a Glance … and maintain our positive 2015 full-year guidance Mid to high-single digit Group revenue growth ✔ Ad performance at least in line with positive net TV ad market ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above pr
Slide 10: Q1 2015 Financial Performance Review
Q1 2015 Financial Performance Dr. Gunnar Wiedenfels Review Chief Financial Officer | May 07, 2015 Page 10
Slide 11: Q1 2015: double-digit revenue growth translates into EUR 13m recurring EBITDA improvement
1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: double-digit revenue growth translates into EUR 13m recurring EBITDA improvement Consolidated revenues Recurring EBITDA [in EURm] [in EURm] +12.7% +9.0% 654.6 152.7 581.1 150 140.1 600 400 100 200 50 0 0 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Recurrin
Slide 12: Q1 2015: key revenue growth drivers of ProSiebenSat.1
1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: key revenue growth drivers of ProSiebenSat.1 Key Group revenue growth drivers [Q1 2015 external revenues, growth rates in percent] Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales EUR 470.8m, +4.8% EUR 138.2m, +
Slide 13: Q1 2015: significant improvement of financial result and underlying net income
1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: significant improvement of financial result and underlying net income Financial result Underlying net income [in EURm] [in EURm] -25.9% +25.4% 20 80 69.9 0 60 55.7 -20 40 -40 -28.4 20 -38.3 -60 0 Q1 2014 Q1 2015 Q1 2014 Q1 2015 | May 07, 2015 P
Slide 14: Broadcasting German-speaking: solid revenue growth of TV advertising and distribution
1 2 3 4 Q1 2015 – Financial Performance Review Broadcasting German-speaking: solid revenue growth of TV advertising and distribution business External revenues and recurring EBITDA [in EURm] Q1 2015 Q1 2014 y-o-y Comments TV advertising revenue growth driven by Ext. revenues 470.8 449.2 +4.8% positi
Slide 15: Digital & Adjacent: dynamic revenue and recurring EBITDA growth
1 2 3 4 Q1 2015 – Financial Performance Review Digital & Adjacent: dynamic revenue and recurring EBITDA growth driven by all key assets External revenues and recurring EBITDA [in EURm] Q1 2015 Q1 2014 y-o-y Comments Ext. revenues 138.2 105.9 +30.4% Dynamic organic revenue growth in Digital Entertain
Slide 16: Content Production & Global Sales: revenue growth driven by US production
1 2 3 4 Q1 2015 – Financial Performance Review Content Production & Global Sales: revenue growth driven by US production business External revenues and recurring EBITDA [in EURm] Q1 2015 Q1 2014 y-o-y Comments Strong organic revenue growth driven by returning shows (esp. “Married at first Ext. reven
Slide 17: Q1 2015: Group P&L – improvement of almost all key metrics
1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: Group P&L – improvement of almost all key metrics [in EURm] Q1 2015 Q1 2014 Δ Revenues 654.6 581.1 +12.7% Recurring EBITDA 152.7 140.1 +9.0% Non-recurring items -6.8 -4.3 +59.6% EBITDA 145.9 135.9 +7.4% Depreciation and amortization -28.7 -26.0
Slide 18: Q1 2015: our financial leverage improved to 1.7x
1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: our financial leverage improved to 1.7x Net debt [in EURm] Net financial debt Financial leverage 92 at 1.7x 1.500 as of March 31, 2015 1.000 1,5921 1,500 500 0 03/31/2014 Change in 03/31/2015 net debt | May 07, 2015 Page 18 Financial leverage:
Slide 19: Financial targets for 2015
1 2 3 4 Q1 2015 – Financial Performance Review Financial targets for 2015 Group revenue growth mid to high-single digit Recurring EBITDA above prior year Underlying net income above prior year Financial leverage 1.5x – 2.5x | May 07, 2015 Page 19 Continuing operations.
Slide 20: Broadcasting German-speaking: TV Performance
Broadcasting German-speaking TV Performance Thomas Ebeling Chief Executive Officer | May 07, 2015 Page 20
Slide 21: Strong viewer share growth across German-speaking markets
1 2 3 4 Broadcasting German-speaking / TV Performance Strong viewer share growth across German-speaking markets Q1 2014 Q1 2015 Germany 28.4% 28.9% Austria 20.2% 21.5% Switzerland 16.3% 18.3% | May 07, 2015 Page 21 Basis for GER: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, full
Slide 22: Strong viewer share growth across German-speaking markets
1 2 3 4 Broadcasting German-speaking / TV Performance Strong viewer share growth across German-speaking markets Audience shares (A14-49) [Full day; in percent] 30 29 28.9 28.4 28.5 28.4 28 27.7 27.7 27.8 27.5 27 26.6 26 25 24 23 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Slide 23: … with the highest lead ever over RTL
1 2 3 4 Broadcasting German-speaking / TV Performance … with the highest lead ever over RTL Audience shares (A14-49) [Full day; in percent] 32 31.0 31 30 29.1 29.1 28,9 29 28.1 28.4 27.7 28.1 28.9 27.7 28 28.4 28.5 Δ 4.0%pts 27 27.8 27.3 27.2 27.5 26 26.6 26.4 25 24.9 24 24,9 23 Q1 2007 Q1 2008 Q1 2
Slide 24: Dynamic ratings growth over competition in Q1 2015
1 2 3 4 Broadcasting German-speaking / TV Performance Dynamic ratings growth over competition in Q1 2015 Audience shares (A14-49) [Full day; in percent] 29,6 30 29.3 29.6 29 27.8 28 27 Δ 5.6%pts 26 26.7 25 24 24.0 23 24.0 24,0 22 January February March | May 07, 2015 Page 24 Basis: All German TV hou
Slide 25: Successful new formats launched in prime time
1 2 3 4 Broadcasting German-speaking / TV Performance Successful new formats launched in prime time German fiction US series “Einstein” “Gotham” “The Flash” up to up to 13.8% 20.3% 20.3% “Die Ungehorsame” “Stalker” “Laura Diamond” up to up to 12.6% 14.4% 12.1% | May 07, 2015 Page 25 Audience share (
Slide 26: Continued growth of small channels
1 2 3 4 Broadcasting German-speaking / TV Performance Continued growth of small channels Audience shares (A14-49) [Full day; in percent] 1.4% 1.2% 1.1% ±0.0%pts +0.7%pts +0.3%pts | May 07, 2015 Page 26 All figures: Q1 2015 vs. Q1 2014. Basis: All German TV households (Germany + EU), A 14-49 years; M
Slide 27: Our focus for the upcoming months
1 2 3 4 Broadcasting German-speaking / TV Performance Our focus for the upcoming months 1 Increase audience share 2 Build share in female target groups 3 Leverage digital synergies to drive viewer loyalty | May 07, 2015 Page 27
Slide 28: Broadcasting German-speaking: Ad Market Performance
Broadcasting German-speaking Ad Market Performance Thomas Ebeling Chief Executive Officer | May 07, 2015 Page 28
Slide 29: Positive advertising start in Q1 2015
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Positive advertising start in Q1 2015 Strong German net TV ad market growth in Q1 ✔ P7S1 German-speaking FTA also with strong TV ad growth of 4.2% ✔ Continued increase of TV share in media mix1 ✔ Continued positive net pricing development
Slide 30: Continued leading ad share position in Germany
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Continued leading ad share position in Germany ProSiebenSat.1 gross TV advertising market share [in percent] Q1 2014 Q1 2015 Germany 44.4% 43.6% Austria 35.0% 35.8% Switzerland 27.8% 29.0% | May 07, 2015 Page 30 Source: Nielsen Media Resea
Slide 31: TV continues to benefit at the expense of other media
1 2 3 4 Broadcasting German-speaking / Ad Market Performance TV continues to benefit at the expense of other media Gross ad spendings, Germany [in percent and %pts; Q1 2015 vs. Q1 2014] Share of segment Change in media mix Total 100.0% TV 46.3% +1.0%pts Online 11.0% -0.2%pts Radio 5.9% -0.2%pts News
Slide 32: 7 out of 10 biggest industries increased TV share
1 2 3 4 Broadcasting German-speaking / Ad Market Performance 7 out of 10 biggest industries increased TV share Gross TV ad spendings of top 10 TV industries, Germany [in EURm, percent and %pts; Q1 2015 vs. Q1 2014] in EURm in EURm Share Δ Δ TV in media mix Total 171 3.020 100.0% +6.0% +1.0%pts Trade
Slide 33: Continued CPT increases in Q1
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Continued CPT increases in Q1 Gross CPT growth Q1 2015 [in percent vs. Q1 2014] 17.2 11.8 9.2 5.4 4.5 | May 07, 2015 Page 33 CPT = Cost Per Thousand. Adults 14-49, Mon-Sun, full day 3-3 h. Base: all TV households in Germany (D+EU) / Source
Slide 34: Significant net CPT increases since 2009
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Significant net CPT increases since 2009 Net CPT development [Index: 2007=100] 130 Market 120 110 100 90 80 2007 2008 2009 2010 2011 2012 2013 2014 2015 Estimate | May 07, 2015 Page 34 Basis: All TV-HH (D+EU), TA 1-30; SevenOne Media: SAT.
Slide 35: First cases of regional TV advertising realized
1 2 3 4 Broadcasting German-speaking / Ad Market Performance First cases of regional TV advertising realized Utility providers Lotteries March: Transmission areas of UnitymediaKabelBW: Hessen, North Approved by Federal Administrative Court Rhine-Westphalia, Baden Württemberg Breweries Car dealers Hi
Slide 36: First regional overlay on national TV Spot via HbbTV geo-targeting
1 2 3 4 Broadcasting German-speaking / Ad Market Performance First regional overlay on national TV Spot via HbbTV geo-targeting Pilot Case „Proof of Concept“ Microsite with videos and store locator Product Launch Q3 2015 Automatic display of all stores nearby Store websites linked via QR Codes | May
Slide 37: H1 impacted by Easter and sport event timing in 2014
1 2 3 4 Broadcasting German-speaking / Ad Market Performance H1 impacted by Easter and sport event timing in 2014 German net TV ad market growth Expected Easter and soccer effects on net TV ad market, by quarter growth 2015 vs. 2014 [in percent] [in percent] • March 2015 benefitted from 2015 earlier
Slide 38: First three quarters of 2014 had a higher share than annual average
1 2 3 4 Broadcasting German-speaking / Ad Market Performance First three quarters of 2014 had a higher share than annual average for P7S1, leading to tougher comparables until Q4 ProSiebenSat.1 estimated net TV ad share vs. IP Germany, 2014 [deviation vs. average share in 2014] Ø Q4 will drive P7S1
Slide 39: Solid single-digit net TV ad market growth forecast
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Solid single-digit net TV ad market growth forecast German net TV ad market estimates 2015 +1.9% +3.2% +2-3% Consensus Ad Forecast P7S1 internal market estimate | May 07, 2015 Page 39 Source: Warc Consensus Ad Forecast January 2015, Zenith
Slide 40: Sales outlook 2015
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Sales outlook 2015 1 German net TV advertising market growth of 2-3% 2 P7S1 to grow at least in line with market 3 Net CPTs to further increase due to increased value of reach 4 New business to benefit from first regional customers | May 0
Slide 41: Broadcasting German-speaking: Distribution
Broadcasting German-speaking Distribution Conrad Albert Chief Legal, Distribution & Regulatory Affairs Officer | May 07, 2015 Page 41
Slide 42: Dynamic growth of Q1 revenue and HD subscribers
1 2 3 4 Broadcasting German-speaking / Distribution Dynamic growth of Q1 revenue and HD subscribers +26% +21% EUR +1.0m +5.4m P7S1 distribution P7S1 HD revenue growth1 subscriber growth1 | May 07, 2015 Page 42 1. Q1 2015 vs. Q1 2014. Note: HD Free-to-air subscribers shown; paying subscriber figures
Slide 43: Additional deals signed to push HD and Pay TV reach
1 2 3 4 Broadcasting German-speaking / Distribution Additional deals signed to push HD and Pay TV reach Deals with beneficial terms and conditions Deal extensions for more than 3 years Reach increase for Pay TV channels Inclusion of 2 FTA channels and extension of mobile, streaming and catch up righ
Slide 44: Terrestrial distribution milestone deal signed
1 2 3 4 Broadcasting German-speaking / Distribution Terrestrial distribution milestone deal signed “DVB-T2” leads to first time monetization of terrestrial distribution for broadcasters HD platform All P7S1 HD channels available as of launch Launch and monetization in 2017 | May 07, 2015 Page 44 Not
Slide 45: Digital & Adjacent
Digital & Adjacent Dr. Christian Wegner Chief Digital & Adjacent Officer | May 07, 2015 Page 45
Slide 46: Double digit growth in revenues and rec. EBITDA
1 2 3 4 Digital & Adjacent Double digit growth in revenues and rec. EBITDA Ext. revenues Rec. EBITDA [in EURm] [in EURm] +30% +12% 150 138.2 30 26.8 100 105.9 20 23.8 ~20% EBITDA margin1 50 10 0 0 Q1 2014 Q1 2015 Q1 2014 Q1 2015 | May 07, 2015 Page 46 1. Entity rec. EBITDA / Ext. revenues.
Slide 47: All D&A units contributed to our strong growth
1 2 3 4 Digital & Adjacent All D&A units contributed to our strong growth … Digital Digital Adjacent Entertainment Commerce EUR EUR EUR Revenues [Q1 2015] 52.0m 69.6m 16.6m Revenue growth [Q1 2015 vs. Q1 2014] +21% +44% +12% | May 07, 2015 Page 47
Slide 48: Market leading positions in our seven D&A verticals
1 2 3 4 Digital & Adjacent Digital Entertainment … with market leading positions in our seven D&A verticals Market position increased stake A Digital Entertainment B Digital Commerce C Adjacent Music, Artist Mgmt., Ad VoD Pay VoD Games M4R/E 7Travel 7Commerce3 Live, Licensing Top Top Beauty & Access
Slide 49: ProSiebenSat.1 maintaining #1 position in a growth market
1 2 3 4 Digital & Adjacent / Digital Entertainment A ProSiebenSat.1 maintaining #1 position in a growth market Solid Q1 growth in premium video ad market … … to be further boosted in full year Nielsen in-stream video ad market1 [in EURm, gross revenues] Ongoing increase of video ads +15% on smartpho
Slide 50: Studio71 is now the #1 Multi Channel Network in Germany
1 2 3 4 Digital & Adjacent / Digital Entertainment Digital Entertainment A Studio71 is now the #1 Multi Channel Network in Germany #1 German MCN in video views German desktop video views1 #1 Growth • Focus on fewer channels & intensive webstar relations drivers for • Own successful web-only content,
Slide 51: maxdome continues to grow in Q1 2015
1 2 3 4 Digital & Adjacent / Digital Entertainment A maxdome continues to grow in Q1 2015 … +78% +109% +53% SVoD Total Total subscribers video views user base | May 07, 2015 Page 51 Note: All figures Q1 2015 vs. Q1 2014.
Slide 52: … with further upside from Unitymedia distribution deal
1 2 3 4 Digital & Adjacent / Digital Entertainment A … with further upside from Unitymedia distribution deal Initial results in line … to be boosted in the full year with maxdome projections … by additional Unitymedia Horizon users1 Partnership recently launched in March 2015 maxdome embedded into U
Slide 53: We have a broad investment portfolio with >60 assets
1 2 3 4 Digital & Adjacent / Digital Commerce B We have a broad investment portfolio with >60 assets Minorities (<10%)1 Minorities (10-50%)1 Majorities (>50%)2 Selection Selection Selection ~30 assets ~20 assets 13 assets | May 07, 2015 Page 53 Note: Investments based on straight equity or equity-li
Slide 54: Our Travel vertical is growing twice as fast as the market
1 2 3 4 Digital & Adjacent / Digital Commerce B Our Travel vertical is growing twice as fast as the market … Growth rate comparison 7Travel growth drivers Growth rate Q1 2015 vs. Q1 2014 [in %1] • Strong TV synergies ~2x 25 • CRM2 optimization 11 • SEO3 excellence Relevant Relevant market market | M
Slide 55: … and now comprises six assets
1 2 3 4 Digital & Adjacent / Digital Commerce B … and now comprises six assets Market position #1 #1 #1 EUR ~160m Top LTM #3 NEW1 5 revenues | May 07, 2015 Page 55 1. 100% share in Discavo.
Slide 56: Established Beauty & Accessories vertical
1 2 3 4 Digital & Adjacent / Digital Commerce B Established Beauty & Accessories vertical ProSiebenSat.1 stake +170% Q1 2015 vs. 100%1 75%1 51% Q1 20142 #1 in #2 in Top 5 in sexual wellness online beauty & care online jewelry retail main-stream | May 07, 2015 Page 56 1. Acquisitions of remaining 53%
Slide 57: Amorelie launches in France, supported by our Media Alliance
1 2 3 4 Digital & Adjacent / Digital Commerce B Amorelie launches in France, supported by our Media Alliance Our Pan-European Media Alliance with >200m reach Our asset Amorelie “exported” to France Export supported by Media Alliance partner TF1 | May 07, 2015 Page 57
Slide 58: Our M4R/E investments deliver strong growth
1 2 3 4 Digital & Adjacent / Digital Commerce B Our M4R/E investments deliver strong growth … with an expanding portfolio of Strong revenue growth … international deals 7Ventures revenues1 Market leader in fitness dance classes ~25% Market leader in wearables Market leader in fashion subscription re
Slide 59: Starwatch position expanded with tour co-production activities
1 2 3 4 Digital & Adjacent / Adjacent C Starwatch position expanded with tour co-production activities Closed co-production deal Successful Q1 label releases for a-ha come backtour 60% 36m a-ha albums Top 5 hit rate sold in German worldwide2 charts1 | May 07, 2015 Page 59 1. 6 out of our own 10 prim
Slide 60: Digital & Adjacent – outlook
1 2 3 4 Digital & Adjacent Digital & Adjacent – outlook 1 Deliver double digit revenue growth in FY 2015 Build new digital verticals 2 Further internationalize with more imports and exports 3 | May 07, 2015 Page 60
Slide 61: Content Production & Global Sales
Content Production & Global Sales Thomas Ebeling Chief Executive Officer | May 07, 2015 Page 61
Slide 62: Outstanding growth in revenues and rec. EBITDA
1 2 3 4 Content Production & Global Sales Outstanding growth in revenues and rec. EBITDA Ext. revenues Rec. EBITDA [in EURm] [in EURm] +76% +127% 45.6 0.7 26.0 -2.5 Q1 2014 Q1 2015 Q1 2014 Q1 2015 | May 07, 2015 Page 62
Slide 63: Record breaking Amazon series Bosch recommissioned
1 2 3 4 Content Production & Global Sales Record breaking Amazon series Bosch recommissioned Most watched show on Amazon Prime Instant Video1 Biggest debut weekend ever for an Amazon Original Series Season 2 ordered only one month after the release of season 1 | May 07, 2015 Page 63 1. Across all mo
Slide 64: Continued ratings success of returning English language shows
1 2 3 4 Content Production & Global Sales Continued ratings success of returning English language shows Season 13 Season 5 Season 5 40% of productions are returning series1 Season 3 Season 2 Season 2 | May 07, 2015 Page 64 1. Red Arrow Entertainment Group produced shows with revenues booked in Q1 20
Slide 65: Hot from MIPTV: sales and acquisition highlights
1 2 3 4 Content Production & Global Sales Hot from MIPTV: sales and acquisition highlights 80% above channel average on DR1 (Denmark) Tape rights picked up by First original drama Scandi crime drama sold to Red Arrow International. to be commissioned Mediaset Italy Already sold in 5 territories by H
Slide 66: Future partnership with Europe's #1 motion capture studio
1 2 3 4 Content Production & Global Sales Future partnership with Europe’s #1 motion capture studio Joint initiative to develop high-end scripted TV drama for the international market Initial 1 year co-development and distribution agreement (worldwide incl. UK), with option to extend Portfolio inclu
Slide 67: Summary & Outlook
Summary & Outlook Thomas Ebeling Chief Executive Officer | May 07, 2015 Page 67
Slide 68: We confirm our positive full-year guidance
1 2 3 4 Summary & Outlook We confirm our positive full-year guidance Mid to high-single digit Group revenue growth ✔ Ad performance at least in line with positive net TV ad market ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above prior year ✔ |
Slide 69: Disclaimer
Disclaimer This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media AG ("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
Slide 70: | May 07, 2015 Page 70
ProSiebenSat. MediaAG | May 07, 2015 Page 70