Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q1 2006 Earnings Presentation
27 slides from Prosiebensat.1 Media's earnings presentation, May 11, 2006
Slide 1: Business Performance Q1 2006
Business Performance Q1 2006 Guillaume de Posch, Chief Executive Officer Lothar Lanz, Chief Financial Officer Munich, May 11, 2006
Slide 2: Agenda
Agenda First Quarter 2006 Financial statements Q1 2006 (IFRS) Outlook page 2
Slide 3: ProSiebenSat.1 Group: Successful Q1 2006
ProSiebenSat.1 Group: Successful Q1 2006 The Group increased both revenues and earnings. Contributions from both the core Free TV business and the Diversification division EUR Consolidated EUR Revenues +8.2% +7.0% 465.3 m net profit 30.7 m EUR EBITDA- EBITDA +10.0% 15.2 % +2.0% 70.6 m Margin EUR Ear
Slide 4: Q1 2006 – Growth in both divisions
ProSiebenSat.1 Group: Q1 2006 – Growth in both divisions The core business in Free TV benefited from the slight growth of the advertising market, the Diversification division from organic growth and the consolidation of 9Live. Diversification: Free TV Transaction TV/Other Diversification Growth th
Slide 5: Free TV: Group's audience share is on the rise
Free TV: Group’s audience share is on the rise Despite intense competition from the Winter Olympics on ARD and ZDF, the Group’s stations strengthen their audience share. Audience share, 14-49, in percent 31 +0.1%points 30.2 30.3 30 29 28 27 26 25 Q1 2005 Q1 2006 page 5 * Sat.1, ProSieben, kabel eins
Slide 6: Free TV: Q1 2006 – Programming of the Group's stations
Free TV: Q1 2006 – Programming of the Group´s stations Top five programs of the ProSiebenSat.1 Group in Q1 2006. Audience share viewers 14 to 49 „Verliebt in Berlin“ (up to 25.8%) „Navy CIS (up to 22.2%) „Schillerstraße (up to 22.0%) „Daddy Day Care“ (21.1%) „Schmitz komm raus!“ (up to 18.
Slide 7: Agenda
Agenda First Quarter 2006 Financial statements Q1 2006 (IFRS) Outlook page 7
Slide 8: Q1 2006 – Revenues and costs
ProSiebenSat.1 Group: Q1 2006 – Revenues and costs Rise in revenues due to higher advertising revenues and full consolidation of 9Live.* The contribution to revenues from 9Live came to EUR 25.8 million. (in EUR m) Revenues Costs +8.2% 500 465.3 500 430.0 + 8.0% 407.0 400 400 377.0 300 300 200 200 10
Slide 9: Q1 2006 – Total costs
ProSiebenSat.1 Group: Q1 2006 – Total costs Increase in total costs mainly caused by larger consumption of programming assets and full consolidation of 9Live. ProSiebenSat.1 Group total costs by line item, Q1 2006 vs. Q1 2005, in EUR m +7.7% +15.5% -0.6% +7.3% +10.4% +33.8% Total cost increase: EUR
Slide 10: Q1 2006 - Results
ProSiebenSat.1 Group: Q1 2006 - Results ProSiebenSat.1 Group boosts EBITDA and pre-tax profit despite rise in costs. (in EUR m) EBITDA Pre-tax profit 100 100 +10.0% 80 80 70.6 +6.4% 64.2 60 60 50.1 47.1 40 40 20 20 0 0 Q1 2005 Q1 2006 Q1 2005 Q1 2006 page 10
Slide 11: Q1 2006 - Consolidated net profit /EPS
ProSiebenSat.1 Group: Q1 2006 - Consolidated net profit /EPS Increase in consolidated net profit improves earnings per share. Consolidated net profit (in EUR m) Earnings per Share (in EUR) 50 0,5 40 0,4 +7.0% 30.7 30 28.7 0,3 +7.7% 20 0,2 0.13 0.14 10 0,1 0 0,0 Q1 2005 Q1 2006 Q1 2005 Q1 2006 page 1
Slide 12: Net financial debt reduced
ProSiebenSat.1 Group: Net financial debt reduced Reduction of net debt despite 9Live acquisition in June 2005. Positive trend due to favourable cashflows. Net debt/LTM-EBITDA Debt instruments as per March 31, 2005 1,0x 0,6x 400 325 400 300 RCF 310.8 200* 200 150 300 Notes -18.1% 254.6 Notes 100 42,2
Slide 13: Q1 2006 – Key Figures
ProSiebenSat.1 Group: Q1 2006 – Key Figures M ajor income statement, cash flow and balance sheet items Q1 2006 Q1 2005 Change EUR m EUR m EUR m Percent Revenues 465.3 430.0 35.3 8.2 EBITDA 70.6 64.2 6.4 10.0 EBIT 61.1 56.8 4.3 7.6 Financial loss -11.0 -10.1 -0.9 -8.9 Pre-tax profit 50.1 47.1 3.0 6.4
Slide 14: Free TV: Q1 2006 – Free TV revenue mainstay
Free TV: Q1 2006 – Free TV revenue mainstay Higher advertising revenues provided the main impetus for revenue growth. Higher programming costs result in decrease of operating profit. (in EUR m) Revenues Operating profit 500 150 +3.1% 412.5 425.1 400 120 300 90 -7.0% 200 60 53.2 49.5 100 30 0 0 Q1 20
Slide 15: Free TV: Q1 2006 – Key figures by stations
Free TV: Q1 2006 – Key figures by stations ProSieben: Lower audience share in 2005 and reduction in internal program sales influence revenues, higher programming investments increase costs. (in EUR m) Key figures by stations Revenues EBITDA Pre-tax profit Q1 2006 Q1 2005 % Q1 2006 Q1 2005 % Q1 2006
Slide 16: Q1 2006 – Key figures by segments
ProSiebenSat.1 Group: Q1 2006 – Key figures by segments Other Diversification segment: Reallocation of revenues within the Diversification division results in reduction of revenues. (in EUR m) Key figures by segments Total revenues External revenues EBITDA Operating profit Q1 2006 Q1 2005 % Q1 2006
Slide 17: Agenda
Agenda First Quarter 2006 Financial statements Q1 2006 (IFRS) Outlook page 17
Slide 18: Strategic goals
ProSiebenSat.1 Group: Strategic goals ProSiebenSat.1 Group has three strategic goals to maintain its position as leading commercial TV Group in Germany. Leading commercial TV Group in Germany 1 2 3 Strengthening of the Expansion of diversification Positioning for core business TV the digital world I
Slide 19: Outlook 2006: Economic climate
Outlook 2006: Economic climate Experts expect positive development of the economy in 2006. Development of GDP and private consumption 1999 to 2006 (in percent) Real GDP Private consumption 3.5 3.5 3.2 3.0 3.0 3.0 2.5 2.5 2.4 2.0 1.9 2.0 2.0 % 1.8 % 1.6 1.5 1.5 1.2 1.0 0.9 1.0 0.1 0.6 0.4 0.5 0.5 -0.
Slide 20: Outlook 2006: Core business TV
Outlook 2006: Core business TV ProSiebenSat.1 Group expects TV advertising investments to rise by 2 percent in 2006. Net TV advertising investments, changes from previous year (in percent) 15 10 9.1 6.8 5 1.3 2.0 0.0 - 0.5 0 1999 2000 2001 2002 2003 2004 2005e* 2006e* -5 -3.7 -5.1 -10 -11.5 -15 page
Slide 21: Outlook 2006: Core business television
Outlook 2006: Core business television Highlights of the stations in Q2 2006. First-class TV for a broad audience: High-quality films and in-house productions in the „DIE SAT.1 FAMILIENPACKUNG“ or theatrical co-productions such as „The Miracle of Bern“ Series such as „Verliebt in Berlin“ Conti
Slide 22: Diversification: new business activities for the Group
Diversification: new business activities for the Group After the Call-TV market, ProSiebenSat.1 opens up Pay-TV and video-on-demand markets. Acquisitions Organic growth New business activities Effects of 9Live consolidation in Internet Pay-TV: launch of kabel eins Q2 (consolidation since June Mobile
Slide 23: Pay TV services start June 1, 2006
ProSiebenSat.1 Group: Pay TV services start June 1, 2006 Sat.1 Comedy and kabel eins classics will be broadcast via digital feeds of Kabel Deutschland (Kabel Digital Home) and Unity Media (Tividi). Broad selection of movies with top titles from the 1930‘s - 1990‘s Wide range of genres for a broa
Slide 24: Diversification: maxdome starts in Q3 2006
Diversification: maxdome starts in Q3 2006 ProSiebenSat.1 and United Internet are launching joint VoD platform “maxdome” in Q3 2006. Strategic rationale: Enter the growing VoD market Deal structure: United Internet: Hosting/Streaming, Billing & Clearing/CRM, Customer-Care, Promotion/Selling, Hardw
Slide 25: Outlook 2006: Moving towards the digital world
Outlook 2006: Moving towards the digital world IPTV: ProSiebenSat.1 Group has signed contracts with Telefónica as well as T-Online to transmit its programs via DSL and is negotiating with other providers. Streaming of stations: Sat.1, ProSieben, kabel eins, N24, 9Live Offers Planned: Pay channel
Slide 26: Outlook 2006: triple play world of ProSiebenSat.1
Outlook 2006: „triple play world“ of ProSiebenSat.1 More variety for viewers and consumers: ProSiebenSat.1 uses new channels to enlarge its services. Cable/satellite/terrestrial ADSL/Internet Mobile networks Free TV Transaction TV Pay TV/ non-linear content Video-on-Demand via page 26
Slide 27: ProSiebenSat.1 Media AG Corporate Office
ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D-85774 Unterföhring Tel. +49/89/95 07-11 80 Fax +49/89/95 07-11 84 page 27