ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — FY2013 Earnings Presentation
120 slides from ProSiebenSat.1 Media's earnings presentation, Feb 27, 2014
Slide 1: FY 2013
FY 2013 February 27, 2014 | February 27, 2014 Page 1
Slide 2: Agenda
Agenda 1 FY 2013 – At a Glance 2 FY 2013 – Financial Performance Review FY 2013 – Operational Performance 3.1 Broadcasting German-speaking 3 3.2 Digital & Adjacent 3.3 Content Production & Global Sales 4 Summary & Outlook | February 27, 2014 Page 2
Slide 3: FY 2013 At a Glance
FY 2013 At a Glance Thomas Ebeling Chief Executive Officer | February 27, 2014 Page 3
Slide 4: Important financial milestones achieved
1 2 3 4 FY 2013 – At a Glance Important financial milestones achieved Record year for ProSiebenSat.1 in terms of revenues and recurring EBITDA ✔ Dynamic growth in Digital & Adjacent, Content Production and Distribution ✔ Solid balance sheet and financing structure established ✔ Outstanding return to
Slide 5: Major operational highlights in FY 2013
1 2 3 4 FY 2013 – At a Glance Major operational highlights in FY 2013 Viewer share growth in Germany ✔ Dynamic growth of revenue streams in Distribution continues ✔ Major progress in expanding and building new digital businesses ✔ Profitable international production business established ✔ Sale of in
Slide 6: ProSiebenSat.1 share price increased by 69% in 2013
1 2 3 4 FY 2013 – At a Glance ProSiebenSat.1 share price increased by 69% in 2013 Share price development ProSiebenSat.1, Dec 30, 2012 – Dec 30, 2013 [in EUR] 40,00 EUR 36.00 35,00 30,00 EUR 21.30 25,00 EUR 5.65 dividend paid 20,00 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2013 2013 2013 20
Slide 7: Key financials in record year 2013
1 2 3 4 FY 2013 – At a Glance Key financials in record year 2013 [FY 2013 vs. FY 2012, in EURm] Revenues 2,605.3 +10.6% ✔ Recurring EBITDA 790.3 +6.1% ✔ Net income* 359.5 +10.7% ✔ Underlying net income 379.7 +6.8% ✔ | February 27, 2014 Page 7 Continuing operations. *Net income after non-controlling
Slide 8: Digital & Adjacent contributed 60% of revenue growth in 2013
1 2 3 4 FY 2013 – At a Glance Digital & Adjacent contributed 60% of revenue growth in 2013 Broadcasting Content Production 1 German-speaking 2 Digital & Adjacent 3 & Global Sales Digital Digital TV advertising Distribution Entertainment Commerce Adjacent +3.2% +37.1% +17.7% +106.1% +9.3% Revenue +EU
Slide 9: We are on track to reach our 2015 revenue growth target
1 2 3 4 FY 2013 – At a Glance We are on track to reach our 2015 revenue growth target [Achievement by year-end 2013, in EURm] 2010-2015 Degree of1.000 achievement 53% 73% 88% 69% 800 800 600 400 60% 425 linear projection of CMD target 554 200 250 312 125 132 110 0 Broadcasting German-speaking Digita
Slide 10: Our strategy is built on Broadcasting and Digital
1 2 3 4 FY 2013 – At a Glance Our strategy is built on Broadcasting and Digital Our vision is to become a broadcasting, digital entertainment and commerce powerhouse by using our TV power. | February 27, 2014 Page 10
Slide 11: We operate in large digital markets with strong growth potential
1 2 3 4 FY 2013 – At a Glance We operate in large digital markets with strong growth potential Digital Entertainment Digital Commerce Ad VoD Pay VoD Games Music Streaming Dynamic underlying digital market growth [CAGR; 2012-2018e] ~26% ~25% ~12% ~31% ~12% Total addressable market [in 2012; by region
Slide 12: We are targeting EUR 1bn revenue growth by 2018
1 2 3 4 FY 2013 – At a Glance We are targeting EUR 1bn revenue growth by 2018 Revenue growth target by 2018 [in EURm] >3,356 >100 >1,000 >600 Implied CAGR >6% >300 2,356 2012 Broadcasting Digital & Content Production & 2018E German-speaking Adjacent Global Sales Recurring EBITDA margin on targeted E
Slide 13: On track in all segments to hit 2018 target
1 2 3 4 FY 2013 – At a Glance On track in all segments to hit 2018 target [Achievement by year-end 2013, in EURm] 2012-2018 Degree of achievement 24% 25% 28% 25% 1.000 800 1,000 600 600 400 200 300 249 17% 100 linear projection 72 149 of CMD target 0 28 Broadcasting German-speaking Digital & Adjacen
Slide 14: Key priorities 2014/2015
1 2 3 4 FY 2013 – At a Glance Key priorities 2014/2015 Broadcasting Digital & Adjacent Content Production & German-speaking Global Sales Strengthen channel portfolio Secure leading positions in all Expand presence attractive digital entertainment in Anglo-Saxon and attractive markets emerging market
Slide 15: Financial Performance Review
FY 2013 Financial Performance Axel Salzmann Review Chief Financial Officer | February 27, 2014 Page 15
Slide 16: We have achieved all of our 2013 financial targets
1 2 3 4 FY 2013 – Financial Performance Review We have achieved all of our 2013 financial targets FY 2013 financial targets and achievement ✔ [continuing operations] 2013 achievement 2013 outlook and change (y-o-y) Group revenues High single-digit growth EUR 2,605.3m +10.6% Recurring EBITDA above pr
Slide 17: FY 2013: double-digit revenue growth and EUR 45.5m recurring EBITDA improvement
1 2 3 4 FY 2013 – Financial Performance Review FY 2013: double-digit revenue growth and EUR 45.5m recurring EBITDA improvement Consolidated revenues Recurring EBITDA [in EURm] [in EURm] +10.6% +6.1% 2.800 2,605.3 900 790.3 2,356.2 744.8 2.100 600 1.400 300 700 0 0 FY 2012 FY 2013 FY 2012 FY 2013 Rec
Slide 18: Key revenue growth drivers of ProSiebenSat.1 in FY 2013
1 2 3 4 FY 2013 – Financial Performance Review Key revenue growth drivers of ProSiebenSat.1 in FY 2013 Key Group revenue growth drivers [FY 2013 external revenues, growth rates in percent] Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales EUR 1,997.8m, +3.7% y-o-y EUR
Slide 19: FY 2013: underlying net income and EPS improved further
1 2 3 4 FY 2013 – Financial Performance Review FY 2013: underlying net income and EPS improved further Underlying net income Underlying EPS [in EURm] [in EUR] +6.8% +6.3% 400 379.7 2,00 355.5 1.78 1.68 300 1,50 200 1,00 100 0,50 0 0,00 FY 2012 FY 2013 FY 2012 FY 2013 | February 27, 2014 Page 19 Cont
Slide 20: Broadcasting German-speaking: TV advertising revenues benefiting from solid market growth
1 2 3 4 FY 2013 – Financial Performance Review Broadcasting German-speaking: TV advertising revenues benefiting from solid market growth and new business External revenues and recurring EBITDA [in EURm] Q4 Q4 FY FY y-o-y y-o-y Comments 2013 2012 2013 2012 Segment revenues driven by Ext. revenues 648
Slide 21: Digital & Adjacent: EUR 20m rec. EBITDA increase
1 2 3 4 FY 2013 – Financial Performance Review Digital & Adjacent: EUR 20m rec. EBITDA increase despite expansion of maxdome, Studio71 and other activities External revenues and recurring EBITDA [in EURm] Q4 Q4 FY FY y-o-y y-o-y Comments 2013 2012 2013 2012 Ext. revenues 150.3 118.4 +27.0% 483.7 334
Slide 22: Dynamic revenue and recurring EBITDA growth in Digital & Adjacent
1 2 3 4 FY 2013 – Financial Performance Review We have maintained dynamic revenue and recurring EBITDA growth in Digital & Adjacent segment in FY 2013 External D&A LTM revenues, LTM recurring EBITDA [in EURm] +45% +54% (y-o-y) +54% (y-o-y) 500 +45% (y-o-y) +49% (y-o-y) Two years of mid double- 400 +
Slide 23: Content Production & Global Sales: US and UK business key growth drivers
1 2 3 4 FY 2013 – Financial Performance Review Content Production & Global Sales: US and UK business remained key growth drivers External revenues and recurring EBITDA [in EURm] Q4 Q4 FY FY y-o-y y-o-y Comments 2013 2012 2013 2012 Segment revenues primarily benefited from organic Ext. revenues 42.4
Slide 24: FY 2013 Group P&L – improvement of all key metrics
1 2 3 4 FY 2013 – Financial Performance Review FY 2013 Group P&L – improvement of all key metrics [in EURm] Q4 2013 Q4 2012 Δ FY 2013 FY 2012 Δ Revenues 840.8 789.3 +6.5% 2,605.3 2,356.2 +10.6% Recurring EBITDA 302.1 285.7 +5.8% 790.3 744.8 +6.1% Non-recurring items -13.4 -16.5 +18.4% -32.6 -64.4 +4
Slide 25: Significant improvement of operating free cash flow
1 2 3 4 FY 2013 – Financial Performance Review Significant improvement of operating free cash flow Operating free cash flow, FCF [in EURm] +44.2% +21.7 416.1 400 +17.1 27,7 +18.0 +25.2 +45.5 58,3 300 288.6 32,3 394,4 200 334,1 359,3 377,3 330,1 288,6 256,3 100 0 FY 2012 Rec. EBITDA Interest result W
Slide 26: Our financial leverage improved to 1.8x from 2.0x last year
1 2 3 4 FY 2013 – Financial Performance Review Our financial leverage improved to 1.8x from 2.0x last year Net debt [in EURm] Net financial debt Financial leverage 2.000 improved to 1.8x as of 334 December 31, 2013, 1.500 down from 2.0x last year 1.000 1,7801 1,4462 500 In 2013, we have extended our
Slide 27: 2013 dividend proposal: attractive shareholder returns
1 2 3 4 FY 2013 – Financial Performance Review 2013 dividend proposal: attractive shareholder returns 2013 dividend proposal1 • Dividend per share: EUR 1.47 • Total dividend payout1: EUR 313m Dividend yield of • AGM on June 26, 2014 4.1% • Dividend payment on June 27, 2014 (based on share price of E
Slide 28: Free float has increased to 97.4%
1 2 3 4 FY 2013 – Financial Performance Review After share class merger and exit of main shareholder Lavena ProSiebenSat.1‘s free float has increased to 97.4% Shareholder structure Shareholder structure at year-end 2012 as of February 2014 Preference stock Common stock 6.0% 2.6% Free Float Telegraaf
Slide 29: Our revenue growth assumptions for 2014
1 2 3 4 FY 2013 – Financial Performance Review Our revenue growth assumptions for 2014 Broadcasting Content Production 1 German-speaking 2 Digital & Adjacent 3 & Global Sales Revenues vs. low single- double-digit double-digit FY 2013 digit growth growth growth | February 27, 2014 Page 29 Continuing
Slide 30: FY 2014 targets
1 2 3 4 FY 2013 – Financial Performance Review 2014 outlook FY 2014 targets Group revenue growth Mid to high-single digit Recurring EBITDA Above prior year Net income Above prior year Financial leverage 1.5x – 2.5x | February 27, 2014 Page 30 Continuing operations.
Slide 31: Broadcasting German-speaking: TV Performance
Broadcasting German-speaking TV Performance Thomas Ebeling Chief Executive Officer | February 27, 2014 Page 31
Slide 32: Germany and Austria with positive viewer share performance
1 2 3 4 Broadcasting German-speaking / TV Performance Germany and Austria with positive viewer share performance Audience shares FY 2012 FY 2013 Germany 27.8% 28.1% Austria 20.9% 21.2% Switzerland - 17.6% - | February 27, 2014 Page 32 Basis for GER: All German TV households (Germany + EU), A 14-49 y
Slide 33: ProSiebenSat.1 outperformed main competitor
1 2 3 4 Broadcasting German-speaking / TV Performance ProSiebenSat.1 outperformed main competitor Audience shares [in percent] Full day Prime time Full day Prime time +0.3%pts +0.3%pts -1.2%pts -0.5%pts 28.7 28.4 28.1 27.8 27.3 25.6 26.1 25.1 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 F
Slide 34: ProSiebenSat.1 steadily increased ratings over the year
1 2 3 4 Broadcasting German-speaking / TV Performance ProSiebenSat.1 steadily increased ratings over the year Audience shares – Full day [in percent] 30 29 28.5 29.3 28.1 27.9 28 27 Δ 4.1%pts 26 26.6 25 25.9 25.2 24 24.8 23 22 Q1 2013 Q2 2013 Q3 2013 Q4 2013 | February 27, 2014 Page 34 Basis: All Ge
Slide 35: Continued leading position in prime time
1 2 3 4 Broadcasting German-speaking / TV Performance Continued leading position in prime time Audience shares – Prime time [in percent] 30 29.3 28.5 29.4 29 28 27.6 27 Δ 4.4%pts 26 25 25.0 24 24.2 23 23.3 22 Q1 2013 Q2 2013 Q3 2013 Q4 2013 | February 27, 2014 Page 35 Basis: All German TV households
Slide 36: Key performance drivers
1 2 3 4 Broadcasting German-speaking / TV Performance Key performance drivers New channel growth ✔ Successful prime time formats ✔ Daytime and prime time performance improved ✔ | February 27, 2014 Page 36
Slide 37: Solid performance of core channels in 2013
1 2 3 4 Broadcasting German-speaking / TV Performance Solid performance of core channels in 2013 Audience shares – Full day [in percent] 12 Ø 11.4 (+0.1ppt vs. PY) 11 Improved daytime 10 performance Ø 9.4 (-0.5ppt vs. PY) 9 6 Ø 5.6 (+/-0.0ppt vs. PY) 5 Q1 2013 Q2 2013 Q3 2013 Q4 2013 | February 27,
Slide 38: SAT.1 Gold with promising year-end share
1 2 3 4 Broadcasting German-speaking / TV Performance SAT.1 Gold with promising year-end share Established in “golden target group” Audience shares, F 40-64 years German music up to 2.6% show x2 0.8% Classic German 0.4% up to 2.8% fiction Traditional court January December up to 2.9% shows 2013 2013
Slide 39: ProSieben MAXX with very attractive share after 4 months
1 2 3 4 Broadcasting German-speaking / TV Performance ProSieben MAXX with very attractive share after 4 months Dynamic growth after launch Audience shares, A 14-49 years up to 5.0% US movies +0.3%pts 0.7% up to 3.9% Anime 0.4% Classic science September December up to 3.4% fiction 2013 2013 | Februar
Slide 40: sixx jumps over 2% hurdle in relevant target group
1 2 3 4 Broadcasting German-speaking / TV Performance sixx jumps over 2% hurdle in relevant target group Strong growth since channel launch Audience shares, F 14-39 years 1 US drama up to 11.5% series +1.2%pts 2.1% 1.6% 2 US mystery up to 9.7% series 0.9% 3 Commissioned FY 2011 FY 2012 FY 2013 up to
Slide 41: Strong ProSiebenSat.1 portfolio
1 2 3 4 Broadcasting German-speaking / TV Performance Strong ProSiebenSat.1 portfolio Target positioning by age and gender male old young Key competition female | February 27, 2014 Page 41
Slide 42: ProSieben is Germany's most successful social media brand
1 2 3 4 Broadcasting German-speaking / TV Performance ProSieben is Germany’s most successful social media brand German channel German channel #1 1.6m fans fan page with #1 676k followers account with | February 27, 2014 Page 42 Source: facebook, Twitter, as of February 2014.
Slide 43: 2014 goals
1 2 3 4 Broadcasting German-speaking / TV Performance 2014 goals 1 Increase audience share in commercial universe 2 Strengthen portfolio 3 Continue to create outstanding content | February 27, 2014 Page 43
Slide 44: Broadcasting German-speaking: Ad Market Performance
Broadcasting German-speaking Ad Market Performance Thomas Ebeling Chief Executive Officer | February 27, 2014 Page 44
Slide 45: We had a successful 2013
1 2 3 4 Broadcasting German-speaking / Ad Market Performance We had a successful 2013 Increased TV share in media mix ✔ Outperformance of positive net TV ad market ✔ Continued positive net pricing development ✔ New channels stimulated new business revenues ✔ | February 27, 2014 Page 45
Slide 46: Net TV advertising market continued to grow
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Net TV advertising market continued to grow German net TV ad market growth German net TV ad market growth 2013 by quarter [in percent] [in percent] 1.8% 1-2% 0.7% 2011 2012 2013e Q1 Q2 Q3 Q4 | February 27, 2014 Page 46 Source: ZAW (2011, 2
Slide 47: Strong ad share gains
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Strong ad share gains P7S1 gross TV advertising market share [in percent] FY 2013: FY 2012 FY 2013 Net share development* Germany 42.8% 43.6% Austria 31.5% 34.8% Switzerland 20.8% 20.5% | February 27, 2014 Page 47 Source: Nielsen Media Res
Slide 48: TV strongly improved position in media mix
1 2 3 4 Broadcasting German-speaking / Ad Market Performance TV strongly improved position in media mix Gross ad spendings, Germany [in EURm; FY 2013 vs. FY 2012] Total: EUR 26,941m Δ EUR 763m (Δ +2.9%) Outdoor, TV Online Radio Newspaper Magazines Cinema 1,553 TV Online 3,955 Radio 12,116 4,734 News
Slide 49: TV continues to benefit at the expense of print
1 2 3 4 Broadcasting German-speaking / Ad Market Performance TV continues to benefit at the expense of print Gross ad spendings, Germany [in percent and %pts; FY 2013 vs. FY 2012] Share of segment Change in media mix Total 100.0% n/a TV 45.0% +1.7%pts Online 11.1% +0.2%pts Radio 5.9% +0.0%pts Newspa
Slide 50: 9 out of 10 biggest industries increased TV share
1 2 3 4 Broadcasting German-speaking / Ad Market Performance 9 out of 10 biggest industries increased TV share Gross TV ad spendings of top 10 TV industries, Germany [in EURm, percent and %pts; FY 2013 vs. FY 2012] in EURm in EURm Share Δ Δ TV in media mix Total 781 12,116 100.0% +6.9% +1.7%pts Food
Slide 51: Top 20 customers grew TV share
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Top 20 customers grew TV share FY 2013 Δ Nielsen gross TV spendings Δ TV share (in %pts) Δ Online share (in %pts) Top 20 5.3% 1.4 -0.5 9.1% 2.5 0.1 Top 21-50 Other 6.8% 1.1 0.6 | February 27, 2014 Page 51 Source: Nielsen Media Research.
Slide 52: European ad catch-up could accelerate TV growth
1 2 3 4 Broadcasting German-speaking / Ad Market Performance European ad catch-up could accelerate TV growth Nielsen gross TV spendings of Top 50 customers per segment [in percent vs. PY, FY 2013] Customer location Germany 8.0% Europe 2.2% Global 8.9% | February 27, 2014 Page 52 Source: Nielsen Medi
Slide 53: Price increases for all main TV channels
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Price increases for all main TV channels Gross CPT growth FY 2013 [in percent vs. FY 2012] 11.1 10.4 7.3 7.5 6.1 | February 27, 2014 Page 53 CPT = Cost Per Thousand. Adults 14-49, Mon-Sun, full day 3-3 h. Base: all TV households in Germany
Slide 54: ProSiebenSat.1 outperformed market
1 2 3 4 Broadcasting German-speaking / Ad Market Performance ProSiebenSat.1 outperformed market German net TV ad market growth [2013; in percent] ~3% 1-2% TV market ProSiebenSat.1 | February 27, 2014 Page 54 Source: P7S1 estimate.
Slide 55: ProSiebenSat.1 increasingly attracts new TV ad customers
1 2 3 4 Broadcasting German-speaking / Ad Market Performance ProSiebenSat.1 increasingly attracts new TV ad customers P7S1 new business net ad revenues in Germany [in EURm] >EUR 50 m in 2013 2009 2010 2011 2012 2013 | February 27, 2014 Page 55
Slide 56: Well targeted new channels broaden customer base
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Well targeted new channels broaden P7S1 customer base SAT.1 Gold sixx ProSieben MAXX | February 27, 2014 Page 56 Source: Dealpipeline, 31/01/2014; Selection of clients; New Business, Sales International, booking of several channels possibl
Slide 57: New P7S1 digital response portfolio drives TV impact
1 2 3 4 Broadcasting German-speaking / Ad Market Performance New P7S1 digital response portfolio drives TV impact Digital TV brand extension TVSMILES extends TV campaigns directly to mobile and rewards viewers of commercials TV retail extension shopkick offers customers rewards for by visiting store
Slide 58: Market research firms expect continuing growth
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Market research firms expect continuing growth German net TV ad market estimates 2014 +3.2% +3.2% +2.8% | February 27, 2014 Page 58 Source: ZenithOptimedia Advertising Expenditure Forecasts December 2013, Warc International Ad Forecast Oct
Slide 59: Sales outlook 2014
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Sales outlook 2014 1 TV to increase share in media mix 2 P7S1 to develop in line with positive net TV ad market 3 Net CPTs to further improve due to increased value of reach 4 Accelerate monetization of new channels | February 27, 2014 Pag
Slide 60: Broadcasting German-speaking: Distribution
Broadcasting German-speaking Distribution Conrad Albert Chief Legal, Distribution & Regulatory Affairs Officer | February 27, 2014 Page 60
Slide 61: Distribution with strong operational performance
1 2 3 4 Broadcasting German-speaking / Distribution Distribution with strong operational performance Dynamic growth ✔ Cost reduction achieved ✔ Expansion on all platforms, including mobile ✔ Push monetization of new channels ✔ | February 27, 2014 Page 61
Slide 62: HD continues to drive sustainable growth
1 2 3 4 Broadcasting German-speaking / Distribution HD continues to drive sustainable growth +51% 32% P7S1 HD FTA subscriber growth HD penetration doubled in 2013 [FY 2013 vs. FY 2012; Germany] [German TV households] | February 27, 2014 Page 62 Note: Subscriber figures as reported by platform partne
Slide 63: Continued growth of basic Pay TV channels
1 2 3 4 Broadcasting German-speaking / Distribution Continued growth of basic Pay TV channels +6% P7S1 Pay TV subscriber growth [FY 2013 vs. FY 2012; Germany] | February 27, 2014 Page 63 Note: Subscriber figures as reported by platform partners (subject to subsequent adjustments by the partners). FY
Slide 64: Capturing mobile streaming opportunities
1 2 3 4 Broadcasting German-speaking / Distribution Capturing mobile streaming opportunities All ProSiebenSat.1 FTA channels in SD Subscription model Revenues with direct bottom-line rec. EBITDA contribution Profitable from day 1 Own streaming app – launch during 2014 Further deals in negotiation |
Slide 65: Telekom and Sky partnerships drive reach
1 2 3 4 Broadcasting German-speaking / Distribution Telekom and Sky partnerships drive reach Distribution of maxdome and media centers on Germany’s ProSieben FUN HD launched on Sky No.1 IPTV platform T-Entertain | February 27, 2014 Page 65
Slide 66: Access to regional customers with new approach
1 2 3 4 Broadcasting German-speaking Access to regional customers with new approach Provide promotion power of TV for mid-sized and regional customers Offer spots for regional partners in national advertising window Continue developing smart regional advertising products, e.g., targeted advertising
Slide 67: ProSiebenSat.1 successfully mobilizes young voters in 2013
1 2 3 4 Broadcasting German-speaking ProSiebenSat.1 successfully mobilizes young voters in 2013 Building engagement Creating opportunities Communicating values Engaging culture | February 27, 2014 Page 67
Slide 68: Long-term goals
1 2 3 4 Broadcasting German-speaking / Distribution Long-term goals 1 Presence on all screens 2 Beating 2018 revenue growth targets 3 Jointly explore revenue opportunities with platform partners | February 27, 2014 Page 68
Slide 69: Digital & Adjacent
Digital & Adjacent Dr. Christian Wegner Chief Digital & Adjacent Officer | February 27, 2014 Page 69
Slide 70: Key achievements
1 2 3 4 Digital & Adjacent Key achievements Revenues of EUR 484m +45% ✔ Rec. EBITDA of EUR 105m +24% ✔ Achievement of 2015 revenue growth target 73% ✔ Market leading portfolio Ad VoD, Pay VoD, M4R/E ✔ Travel Cluster strengthened 4 acquisitions ✔ Strong position built in Games 1 acquisition ✔ First l
Slide 71: Dynamic growth for eight quarters with profits >EUR 100m
1 2 3 4 Digital & Adjacent Dynamic growth for eight quarters with profits >EUR 100m Dynamic growth over last 8 quarters More than EUR 100m profits [in EURm]1 [in EURm] 600 +45% +45% +54% 500 500 +54% +45% 400 +49% 400 +43% +42% 300 +39% 300 484 +24% 200 200 100 100 105 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20
Slide 72: 73% of 2015 revenue growth target achieved
1 2 3 4 Digital & Adjacent 73% of 2015 revenue growth target achieved… External Revenues [in EURm] 597 113 484 172 2010 2013 2015 target | February 27, 2014 Page 72
Slide 73: Leveraging our TV and Digital power
1 2 3 4 Digital & Adjacent … by leveraging our TV and Digital power TV Digital TV reach Leading digital platforms Content power Digital synergies Sales power Digital organization | February 27, 2014 Page 73
Slide 74: All units drove growth
1 2 3 4 Digital & Adjacent All units drove growth Digital Entertainment Digital Commerce Adjacent Revenues [FY 2013] EUR 191m EUR 222m EUR 71m Revenue growth [FY 2013 vs. FY 2012] +18% +106% +9% Total D&A Revenues: EUR 484m (+45%) [FY 2013; FY 2013 vs. Rec. EBITDA: EUR 105m (+24%) FY 2012, in percen
Slide 75: Market leading assets in key Digital Entertainment markets
1 2 3 4 Digital & Adjacent / Digital Entertainment Market leading assets in key Digital Entertainment markets Ad VoD Pay VoD SevenGames Our market rank #1 #1 #3* Our market share 48% 36% 12% (#1 player: 20%) +45% +56% +11% Market growth [FY 2013 vs. FY 2012]1 | February 27, 2014 Page 75 *Incl. Aeria
Slide 76: No.1 InStream sales house in dynamically growing market
1 2 3 4 Digital & Adjacent / Digital Entertainment No.1 InStream sales house in dynamically growing market InStream video advertising market [Gross, in EURm, Germany] +45% 309 20% Other 212 * 33% 48% FY 2012 FY 2013 | February 27, 2014 Page 76 Source: ad market: Nielsen Media Research; excl. YouTube
Slide 77: No.1 in video and key special interest segments
1 2 3 4 Digital & Adjacent / Digital Entertainment No.1 in video and key special interest segments Special interest segments #1 Video #1 Infotainment #1 Sport #1 Auto #1 Music P7S1 own platforms Mandates - selection - 13.8m UU 10.0m UU 6.6m UU 6.5m UU 4.9m UU | February 27, 2014 Page 77 Note: UU=uni
Slide 78: MyVideo is strong No.2 after YouTube
1 2 3 4 Digital & Adjacent / Digital Entertainment MyVideo is strong No.2 after YouTube active users per month video views premium content y-o-y growth* in unique users | February 27, 2014 Page 78 Note: excl. music.
Slide 79: Studio71 already a leading MCN in Germany
1 2 3 4 Digital & Adjacent / Digital Entertainment Studio71 already a leading MCN in Germany • 130 channels launched • >100m monthly views 1 • 30 webstars signed | February 27, 2014 Page 79 1) As of January 2014.
Slide 80: Blockbuster internet event Last Man Standing 2
1 2 3 4 Digital & Adjacent / Digital Entertainment Blockbuster internet event “Last Man Standing 2” live views on Twitter +14% vs. LMS1 concurrent viewers vs. LSM1 on Google search >100k concurrent views Exclusive branded entertainment with Sony for German Playstation 4 launch | February 27, 2014 Pa
Slide 81: maxdome is No.1 Pay VoD service
1 2 3 4 Digital & Adjacent / Digital Entertainment maxdome is No.1 Pay VoD service >60,000 titles ~9,500 TV spots aired in 2013 Multi-year contracts with US majors #1 Pay VoD service 83% Smart TV coverage and market leader with 60% share of usage¹ Austria T-Entertain | February 27, 2014 Page 81 1) G
Slide 82: Significant uplift in most important KPIs in 2013
1 2 3 4 Digital & Adjacent / Digital Entertainment Significant uplift in most important KPIs in 2013 +51% +51% +33% Monthly paying customers Total video usage¹ Content catalogue | February 27, 2014 Page 82 1) # of views; LTM = Dec 2012 vs. Dec 2013.
Slide 83: No.1 Pay VoD player serving both TVoD & SVoD
1 2 3 4 Digital & Adjacent / Digital Entertainment No.1 Pay VoD player serving both TVoD & SVoD Top 6 in German TVoD + SVoD market [Market share, Jan-Dec 2013*] TVoD SVoD #1 36% #2 17% ** #3 12% #4 11% #5 8% #6 4% | February 27, 2014 Page 83 Source: GfK January – December 201
Slide 84: maxdome distribution deals tap into large addressable market
1 2 3 4 Digital & Adjacent / Digital Entertainment maxdome distribution deals tap into large addressable market Ex- New New tended to | February 27, 2014 Page 84 Note: “New” distribution deals refer to upcoming rollout. 1) incl. offline; mobile encompasses mobiles and tablets. 2) YE 2013. 3) YE 2012
Slide 85: Competitive pricing driving subscriber growth
1 2 3 4 Digital & Adjacent / Digital Entertainment Competitive pricing driving subscriber growth 20% discount (€7.99) + free month +113% subscriber growth in H2 2013 | February 27, 2014 Page 85
Slide 86: No.3 through landmark deal with Aeria Games
1 2 3 4 Digital & Adjacent / Digital Entertainment No.3 through landmark deal with Aeria Games… Jump-start in mobile Substantial cost synergies Best-in-class monetization Unparalleled marketing power & Excellent sourcing power | February 27, 2014 Page 86 1) League table based on 2013E or latest avai
Slide 87: Bringing scale and enabling jump-start in mobile
1 2 3 4 Digital & Adjacent / Digital Entertainment … bringing scale and enabling jump-start in mobile & Users* 27m 77m Countries 13 35 Number of licenses** 19 39 Share of revenues from mobile 3% 16% | February 27, 2014 Page 87 *) Users = Registrations on portals and game pages; **) Full online and m
Slide 88: With Aeria Games, P7S1 acquires a market leading player
1 2 3 4 Digital & Adjacent / Digital Entertainment With Aeria Games, P7S1 acquires a market leading player Leading European publisher Attractive deal structure • Leading publisher of free-to-play • P7S1 acquires 100% of shares in online and mobile games Aeria Games Europe • Large game portfolio cons
Slide 89: Strong growth in key Digital Commerce segments
1 2 3 4 Digital & Adjacent / Digital Commerce Strong growth in key Digital Commerce segments M4R/E Travel Ext. revenue growth [FY 2013 vs. FY 2012] >25% >250% #1 #1 Our ranking Top 5 • Global sourcing #1 • First exit #2 #3 | February 27, 2014 Page 89
Slide 90: More than 40 equity investments in Digital Commerce
1 2 3 4 Digital & Adjacent / Digital Commerce More than 40 equity investments in Digital Commerce Minority (≤10%) Minority (11-50%) Majority (>50%) Selection Selection 21 deals 18 deals 8 deals | February 27, 2014 Page 90 Please note: investments based on straight equity or equity-like components.
Slide 91: Acquisition of weg.de strengthens our Travel Cluster
1 2 3 4 Digital & Adjacent / Digital Commerce Acquisition of weg.de strengthens our Travel Cluster Virtual tour Traffic generator Revenue growth: operator B2C Online Travel vs. Travel Cluster [Revenues 2013 vs. 2014e] +23% Trip booking Your perfect holiday experience Online travel +8% agency Market
Slide 92: Travel Cluster with rapid growth and attractive margins
1 2 3 4 Digital & Adjacent / Digital Commerce Travel Cluster with rapid growth and attractive margins Revenues: >EUR 100m 1 2 Double-digit recurring EBITDA margin | February 27, 2014 Page 92 1) Incl. ad income. 2) Subject to closing.
Slide 93: Beauty & Lifestyle will be our next cluster
1 2 3 4 Digital & Adjacent / Digital Commerce Beauty & Lifestyle will be our next cluster #1 #1 Online retailer Meta-search for correction for furniture eyeglasses #2 #1 Beauty & Curated fragrance shopping retailer fashion marketplace | February 27, 2014 Page 93
Slide 94: We have built a global deal sourcing network
1 2 3 4 Digital & Adjacent / Digital Commerce We have built a global deal sourcing network D/A/CH Asia San Francisco New York India | February 27, 2014 Page 94
Slide 95: shopkick is a leading digital mobile player in the US
1 2 3 4 Digital & Adjacent / Digital Commerce shopkick is a leading digital mobile player in the US… • Named #35 of Forbes’ America’s most promising companies • 70m products scanned across 10k stores, 4bn offers viewed • >150 partners incl. P&G, L’Oreal, Pepsi • Top co-investors (Kleiner Perkins, Re
Slide 96: P7S1 is the key partner in shopkick's expansion to Europe
1 2 3 4 Digital & Adjacent / Digital Commerce … and P7S1 is the key partner in its expansion to Europe Three innovative sources of monetization A landmark partnership • Cash investment in shopkick, Inc 1. Footfall Retailers pay for walk-ins in stores (mid single-digit million investment) 2. Purchase
Slide 97: Our first successful exit – Tirendo
1 2 3 4 Digital & Adjacent / Digital Commerce Our first successful exit – Tirendo TV facilitated the build up… …for successful exit • Tirendo founded in 2012 with strong backing of 7V • Acquisition of Tirendo by biggest & well- • Strong media push via P7S1 with Sebastian Vettel established only-onli
Slide 98: Our incubator EPIC has launched six assets
1 2 3 4 Incubation 1 Our incubator EPIC has launched six assets Leading online Pet food and retailer of high New hotel price accessories retailer quality love toys, comparison platform with >10.000 exclusive lingerie & products sensual products High quality, Online retailer of Last-minute deals fash
Slide 99: Continued strong position in key Adjacent markets
1 2 3 4 Digital & Adjacent / Adjacent Continued strong position in key Adjacent markets * 60% share of Top 20 +26% revenue growth Music Live Entertainment & Events | February 27, 2014 Page 99 * FY 2013 vs. FY 2012.
Slide 100: Digital & Adjacent Outlook: 2014 & beyond
Digital & Adjacent Outlook: 2014 & beyond | February 27, 2014 Page 100
Slide 101: All three segments expected to grow dynamically
1 2 3 4 Digital & Adjacent All three segments expected to grow dynamically CAGR range 2012-18 • Ad VoD (Studio71, Online Video platforms) Digital • Pay VoD (maxdome) Entertainment • Online Games (P7S1 Games) 15-20% • Music Streaming (AMPYA) • Opportunistic media investments >EUR 600m Digital • Strat
Slide 102: On track to achieve our 2018 targets
1 2 3 4 Digital & Adjacent On track to achieve our 2018 targets Target: Revenues and targets EUR [2010-2018, in EURm] 935m 800 Target: EUR EUR 597m In the past 484m 600 (reported) three years we EUR 335m have delivered on EUR (reported) our revenue 400 EUR 225m 172m (reported) growth targets (report
Slide 103: Outlook 2014
1 2 3 4 Digital & Adjacent Outlook 2014 1 Grow existing digital businesses: organic + bolt-on 2 Build new Digital Cluster “Beauty & Lifestyle” 3 Leverage synergies to enhance competitive advantage 4 International sourcing: imports and exports 5 Expand strong team | February 27, 2014 Page 103
Slide 104: Content Production & Global Sales
Content Production & Global Sales Jan Frouman Group MD Red Arrow Entertainment Group | February 27, 2014 Page 104
Slide 105: Dynamic revenue and recurring EBITDA growth in 2013
1 2 3 4 Content Production & Global Sales Dynamic revenue and recurring EBITDA growth in 2013 Ext. Revenues Rec. EBITDA [in EURm] [in EURm] 200 20 +30% +146% 150 124 95 11 100 10 50 4 0 0 FY 2012 FY 2013 FY 2012 FY 2013 | February 27, 2014 Page 105 Continuing operations.
Slide 106: Solid portfolio of activities in 2013
1 2 3 4 Content Production & Global Sales Solid portfolio of activities in 2013 • More than 800 formats currently in development Development • 450 pitch-ready titles Production • 170+ formats and pilots produced in 2013, covering both scripted and non-scripted content • 600+ titles in the 2013 catal
Slide 107: Established four powerful partnerships in key markets
1 2 3 4 Content Production & Global Sales Established four powerful partnerships in key markets Q2 Q2 2013 2013 Creative Co-production partnership with partnership for Israeli second Middle East & screen expert North African region Q4 2013 Co-development / Joint production deal production with leadi
Slide 108: Launched UK production joint venture with One Three Media
1 2 3 4 Content Production & Global Sales Launched UK production joint venture with “One Three Media” • Critically acclaimed US TV content business, headed by Mark Burnett (Survivor, The Voice, Shark Tank) • Develop and produce new or established formats for the UK market • RA subsidiary CPL Product
Slide 109: Continued to grow non-scripted portfolio with international hits
1 2 3 4 Content Production & Global Sales Continued to grow non-scripted portfolio with international hits • UK premiere outperformed Channel 4’s slot average of the past 3 months by a stellar 42% • US debut on ABC (season 2) ranked 2nd after CBS, beating NBC by 33% • Sold to 80+ countries • Record
Slide 110: Built strong scripted slate for major international channels
1 2 3 4 Content Production & Global Sales Built strong scripted slate for major international channels History NBC SKY Channel ODYSSEY BBC BBC | February 27, 2014 Page 110 Note: Includes pilots and series orders.
Slide 111: Expanded distribution reach with major digital platform players
1 2 3 4 Content Production & Global Sales Expanded distribution reach with major digital platform players 2011 2012 2013 | February 27, 2014 Page 111
Slide 112: Outstanding premiere of Harry Bosch pilot on Amazon
1 2 3 4 Content Production & Global Sales Outstanding premiere of “Harry Bosch” pilot on Amazon 4.8 out of 5 stars >8,400 reviews 8.8 out of 10 stars >2,000 reviews | February 27, 2014 Page 112
Slide 113: Further US expansion via acquisition of HALF YARD
1 2 3 4 Content Production & Global Sales Further US expansion via acquisition of “HALF YARD” • Multi-award-winning independent TV production company, based in NYC & DC, specializing in non-scripted TV (lifestyle) • Highly profitable company with double-digit EBITDA margin / ~100 hrs of programming
Slide 114: Strategic priorities for 2014
1 2 3 4 Content Production & Global Sales Strategic priorities for 2014 1 Grow Red Arrow's financial scale and production margins 2 Expand across all key markets via organic and acquired growth 3 Drive IP ownership via smart co-financing and pre-sales efforts 4 Broaden distribution portfolio via par
Slide 115: Summary & Outlook
Summary & Outlook Thomas Ebeling Chief Executive Officer | February 27, 2014 Page 115
Slide 116: Our key priorities for 2014/2015
1 2 3 4 Summary & Outlook Our key priorities for 2014/2015 1 Strengthen channel portfolio Broadcasting German-speaking 2 Gain ad revenues from print 3 Drive distribution to all platforms, including mobile 4 Secure leading positions in all attractive digital entertainment markets Digital & Adjacent 5
Slide 117: Good start into 2014
1 2 3 4 Summary & Outlook Good start into 2014 Promising start into 2014 across all segments ✔ Positive development of ad business ✔ Audience shares in January and February above prior year ✔ Landmark deals with Aeria Games and shopkick signed ✔ Acquisition of US based TV production company “HALF YA
Slide 118: Financial targets for 2014
1 2 3 4 Summary & Outlook Financial targets for 2014 Group revenue growth Mid to high-single digit Recurring EBITDA Above prior year Net income Above prior year Financial leverage 1.5x – 2.5x | February 27, 2014 Page 118 Continuing operations.
Slide 119: 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 120: | February 27, 2014 Page 120
ProSiebenSat1 MediaAG | February 27, 2014 Page 120