Prosiebensat.1 Media Se · XETR:PSM

Prosiebensat.1 Media — FY2021 Earnings Presentation

43 slides from Prosiebensat.1 Media's earnings presentation, Mar 3, 2022

Slide 3: FY 2021: Record Year for ProSiebenSat.1
FY 2021: RECORD YEAR FOR PROSIEBENSAT.1 +11% 2021 was a record year for ProSiebenSat.1 – fully achieving its raised targets 4,494 4,047 Group Revenues Strong performance of Entertainment segment despite ongoing COVID-19 pandemic: in EUR m Entertainment revenues up by +12% and adjusted EBITDA increas
Slide 5: Strong Group Revenue Growth with Entertainment as Main Contributor
FINANCIALS | STRONG GROUP REVENUE GROWTH WITH ENTERTAINMENT AS MAIN CONTRIBUTOR EXTERNAL REVENUES: GROUP & SEGMENTS [IN EUR M] COMMENTS Q4 Q4 FY FY 2021 2020 YoY 2021 2020 YoY • FY 2021 Group revenues significantly increased by +11% or EUR 447m with Entertainment being the biggest growth Group 1,453
Slide 6: Significant Adjusted EBITDA Growth Reflecting Strong Recovery of Advertising
FINANCIALS | SIGNIFICANT ADJUSTED EBITDA GROWTH REFLECTING STRONG RECOVERY OF ADVERTISING BUSINESS ADJUSTED EBITDA: GROUP & SEGMENTS [IN EUR M] COMMENTS Q4 Q4 FY FY 2021 2020 YoY 2021 2020 YoY • Group adjusted EBITDA increase by +19% in FY 2021 reflecting strongly improved profitability of the Enter
Slide 7: Substantial Increase in Adjusted Net Income by +64% to EUR 362m
FINANCIALS | SUBSTANTIAL INCREASE IN ADJUSTED NET INCOME BY +64% TO EUR 362 M IN FY 2021 EARNINGS AND CASH FLOW KPIS [IN EUR M] COMMENTS Q4 Q4 FY FY 2021 2020 YoY 2021 2020 YoY • Reported EBITDA and EBIT remained stable despite strong increase in adjusted EBITDA as prior year's figures were Adjusted
Slide 8: Year-End Leverage Reduced to 2.2x and Back in Target Range
FINANCIALS | YEAR-END LEVERAGE REDUCED TO 2.2X AND BACK IN OUR TARGET RANGE, BENEFITING FROM STRONG 2021 FINANCIAL PERFORMANCE Net financial debt [in EUR M] Debt profile [in EUR M] 12/21 12/20 Maturity Senior Notes – 600 Jan-21 Term Loan 86 151 Apr-23 Term Loan 1,114 1,949 Apr-24 -117 Promissory Loa
Slide 9: Clear Investment Guidelines Contributing to ≥15% P7S1 ROCE Target
FINANCIALS | PROSIEBENSAT.1 FOLLOWS CLEAR INVESTMENT GUIDELINES THAT CONTRIBUTE TO THE ≥15% P7S1 ROCE TARGET Our criteria to promote sustainable growth P7S1 ROCE Return At least 18% IRR for growth and change projects1) Payback Payback period of less than 3 years; For strategic projects, however, up
Slide 11: Significant Revenue Growth and Diversification in the Past 10 Years
WE HAVE ACHIEVED SIGNIFICANT REVENUE GROWTH AND DIVERSIFICATION IN THE PAST 10 YEARS, WHILE CREATING SHAREHOLDER VALUE AT THE SAME TIME Group revenues [in EUR m] CAGR 2x Revenues have doubled since FY 2011 +7% EUR 3.2bn 4,494 Cash distributed to shareholders1) since FY 2011 ~60% New businesses 2,199
Slide 12: Continuing to Grow at a CAGR of +4-5% Organically
HAVING ACHIEVED SIGNIFICANT REVENUE GROWTH OVER THE PAST 10 YEARS, WE CONTINUE TO GROW AT A CAGR OF +4-5% ORGANICALLY INITIATIVES SUPPORTING OUR MEDIUM- TO LONG-TERM GROWTH AMBITION Turn media synergies into portfolio value and create excess cash flows through disposals Apply unique media investment
Slide 13: Our Ambition: Leading DACH Digital-First Video Entertainment Provider
OUR AMBITION: STRENGTHEN OUR POSITION AS A LEADING DACH DIGITAL-FIRST VIDEO ENTERTAINMENT PROVIDER, POWERING SYNERGETIC B2C PLATFORMS Maximizing Diversifying REACH MONETIZATION 1 We are the leading independent digital 4 We monetize directly via marketing of entertainment platform in DACH classic adv
Slide 14: Maximizing Reach with Local, Live and Relevant Content
WE MAXIMIZE OUR REACH BY PROVIDING LOCAL, LIVE AND RELEVANT CONTENT ON OUR BROAD ARRAY OF LINEAR AND DIGITAL PLATFORMS Maximizing Diversifying REACH MONETIZATION 1 We are the leading independent digital 4 We monetize directly via marketing of entertainment platform in DACH classic advertising space
Slide 15: Differentiated Content & Platform Strategy Creates Moments That Matter
OUR DIFFERENTIATED CONTENT & PLATFORM STRATEGY 1 CREATES MOMENTS THAT MATTER TO MILLIONS OF PEOPLE 2021 HIGHLIGHTS TALK-OF-TOWN MOMENTS significant REACH ON ALL PLATFORMS Total net viewers1) Ø 209min daily TV viewing time in Germany2) Ø 11m monthly P7S1 Ø 59m Unique Users4) monthly 23m 23m 19m 27m 1
Slide 16: Outperforming Peers on Linear Channels and Creating Digital Traction
THIS STRATEGY ENABLES US TO OUTPERFORM OUR PEERS ON LINEAR CHANNELS 1 AND TO CREATE SIGNIFICANT TRACTION DIGITALLY 2021 HIGHLIGHTS FY 2021: 25.6% FY 2021: 23.2% Joyn and Digital highlights 27.6% 26.1% 24.5% 24.1% P7S1 top formats driving reach on all platforms 24.7% especially Joyn (e.g., The Taste
Slide 17: Pushing Live, Local and Relevant Content
WE PUSH LIVE, LOCAL AND RELEVANT CONTENT TO CREATE MOMENTS THAT 2 MATTER TO OUR USERS INCREASED Further invest in Key Initiatives local content share local content to increase own IP Primetime • Key differentiator vs. global streaming • Establish new in-house production hub for In % of total hours 5
Slide 18: Leveraging All Platforms, Own and Third Party
WE LEVER ALL PLATFORMS, BOTH OWN & OPERATED AND 3 3RD PARTY, TO DELIVER THESE MOMENTS TO OUR USERS WHEREVER THEY ARE Own platforms 3rd party platforms Streaming TVC1) & Distribution Creator Publishing Digital Linear TV Mandates business publishing business network aggregator distribution Example cha
Slide 19: Deep-Dive: Joyn Is the Cornerstone of Our Digital Strategy
DEEP-DIVE | JOYN IS THE CORNERSTONE OF OUR DIGITAL STRATEGY AND IS WELL- 3 POSITIONED BASED ON CONSUMER SPENDING HABITS WILLINGNESS TO SPEND MORE MONEY ON SVOD IS LIMITED SWEET SPOT BVOD (BROADCASTER VOD) POSITIONING Max. number of SVOD services Max. amount that people are people are willing to pay
Slide 20: We Monetize Our Relevant Reach Directly and Indirectly
WE MONETIZE OUR RELEVANT REACH DIRECTLY AND INDIRECTLY Maximizing Diversifying REACH MONETIZATION 1 We are the leading independent digital 4 We monetize directly via marketing of entertainment platform in DACH classic advertising space We empower brands 2 We lever market-leading tailored and create
Slide 21: Direct Monetization Supported by Strong Market Fundamentals
OUR DIRECT MONETIZATION BUSINESS IS 4 SUPPORTED BY STRONG MARKET FUNDAMENTALS Ø DAILY VIEWING TIME OF VIDEO CONTENT (ROLLING AVERAGE)1) NET ADVERTISING REVENUES BY MEDIA2) Germany, in min P7S1 addressable market Germany, in EUR bn 228 233 227 223 CAGR 212 219 209 2022 – 2026 Projection +5% 8.2 Displ
Slide 22: Direct Monetization Translates into Ad Share Gains vs. Key Competitor
THE SUCCESS OF OUR DIRECT MONETIZATION STRATEGY TRANSLATES 4 INTO SIGNIFICANT AD SHARE GAINS VS. KEY COMPETITOR 2021 HIGHLIGHTS NIELSEN GROSS ADVERTISING REVENUE SHARE1) 38.7% 38.8% Strong SOM2) sales performance & growth in almost all German TV advertising industries (especially top 10) 36.4% 35.2%
Slide 23: Monetizing Indirectly by Unlocking Platform Value Potential
WE MONETISE INDIRECTLY BY UNLOCKING THE FULL VALUE POTENTIAL OF OUR 5 PLATFORMS, LEVERAGING IDLE AD INVENTORY AND COMMERCE KNOW-HOW 2021 HIGHLIGHTS … ALLOCATING IT TO ATTRACTIVE CONSUMER BRANDS WE LEVERAGE OUR IDLE INVENTORY … in our portfolio Split by usage of total advertising inventory 2021 yearl
Slide 24: Investment Activities Are Highly Synergistic with Entertainment
OUR INVESTMENT ACTIVITIES ARE 5 HIGHLY SYNERGISTIC … with our ENTERTAINMENT BUSINESS and benefit the Group in various ways 1 2 3 4 5 Utilization of idle Identification of new Development of new Attractive returns on Develop companies media inventory at client groups with client groups into our inves
Slide 25: Investing in Assets with Long-Term Structural Growth Potential
WE INVEST IN ASSETS WITH LONG-TERM STRUCTURAL GROWTH POTENTIAL AND 5 SYNERGIES TO ENTERTAINMENT Vehicle (incl. NuCom Group) Phase Seed & early stage Early & growth Strategic growth • Standardized 360° media • Media-for-revenue and media- • Bigger minority and majority Investment testing deals in the
Slide 26: Value Through Sale of Asset Stakes and New Growth Pillars
WE GENERATE VALUE THROUGH THE SALE OF ASSET STAKES AS WELL 5 AS BY BUILDING NEW GROWTH PILLARS FOR THE GROUP PROOF POINT: INVESTMENT IN ABOUT YOU Partial exit and successful IPO 2016 2017 2018 2019 2020 2021 Initial P7S1 broad- Bestseller AY-branded Follow-on IPO investment casted AY investment, Wee
Slide 27: Selectively Deploying Cash to Enhance Value Creation
WE SELECTIVELY DEPLOY CASH TO ENHANCE VALUE CREATION IN EXISTING 5 INVESTMENTS Our CRITERIA for media and cash investments PROOF POINTS Clear focus on attractive B2C business models with ~EUR 80m 2.4x 37% A high marketing spend that benefit from P7S1 reach Invested capital Brand awareness IRR on exi
Slide 28: Continuously Monitoring Assets for Best Ownership
WE CONTINUOUSLY MONITOR OUR ASSETS FOR BEST 6 OWNERSHIP AND MANAGE OUR PORTFOLIO ACCORDINGLY We scout for digital B2C companies that can To re-evaluate our investment, we ask key questions to determine 1 leverage and benefit from our extensive whether the asset is to stay in our portfolio or to dive
Slide 29: Digital Transformation Enables Superior Shareholder Distributions
OUR DIGITAL TRANSFORMATION ENABLES SUPERIOR SHAREHOLDER DISTRIBUTIONS Maximizing Diversifying REACH MONETIZATION 1 We are the leading independent digital 4 We monetize directly via marketing of entertainment platform in DACH classic advertising space We empower brands 2 We lever market-leading tailo
Slide 30: Monetization Approach Has Generated Significant Value for Investors
SINCE OUR MANAGEMENT TEAM ASSUMED OFFICE IN 2020, OUR MONETIZATION APPROACH HAS GENERATED SIGNIFICANT VALUE FOR OUR INVESTORS CUMULATED ADJUSTED OPERATING FCF 2020-20211) EUR EUR 722M Σ>EUR 1BN 368M 1) 1) 1) (incl. holding cash flow of -EUR 67m) DIRECT INDIRECT MONETIZATION MONETIZATION Advertising
Slide 32: Portfolio and Currency Adjustments for FY 2021
OUTLOOK | PORTFOLIO AND CURRENCY ADJUSTMENTS RESULT IN REVENUES OF EUR 4,413M AND ADJUSTED EBITDA OF EUR 825M IN FY 2021 RECONCILIATION OF PORTFOLIO & CURRENCY ADJUSTED FIGURES FOR FY 2021 [in EUR m] Revenues Adjusted EBITDA -EUR 81m -EUR 15m COMMENTS 4,494 840 • Portfolio & currency adjusted Group
Slide 33: Positive Financial Outlook for FY 2022
OUTLOOK | POSITIVE FINANCIAL OUTLOOK FOR FY 2022 FY 2021 adjusted for currency FY 2022 and portfolio effects TARGET Group EUR 4,413m EUR 4,600m • Target takes DACH advertising revenue development in the range of +/-0% to +3% in 2022 into revenues (+/- EUR 100m) account • Portfolio- and currency adju
Slide 34: Dividend Proposal: Strong Increase in Adjusted Net Income
DIVIDEND PROPOSAL | STRONG INCREASE IN ADJUSTED NET INCOME TRANSLATES INTO SUBSTANTIAL DIVIDEND INCREASE FY 2021 FY 2020 Dividend yield: 5.7% 1) Group adjusted net income EUR 362m EUR 221m (as of December Pay-out ratio2) vs. adjusted net income 50% 50% 31, 2021) Total dividend pay-out2) EUR 181m EUR
Slide 35: Committed to Creating Value for Shareholders
Summary PROSIEBENSAT.1 REMAINS COMMITTED TO CREATING VALUE FOR ITS SHAREHOLDERS 1 REACH • Leading mass audience reach in DACH • Unique live & local content strategy • Broad array of linear and digital platforms 2 MONETIZATION • Intact consumption drives solid growth in advertising • Incremental medi
Slide 37: Group P&L
GROUP P&L [in EUR m] Q4 2021 Q4 2020 YoY FY 2021 FY 2020 YoY Revenues 1,453 1,492 -3% 4,494 4,047 +11% Adjusted EBITDA 370 377 -2% 840 706 +19% Reconciling items -11 84 n/a -36 95 n/a EBITDA 360 461 -22% 804 801 +0% Depreciation, amortization and -66 -67 -1% -251 -248 +1% impairments Thereof PPA -7
Slide 38: Entertainment DACH Advertising Revenues Above Pre-Corona Level
ENTERTAINMENT DACH ADVERTISING REVENUES IN Q4 2021 ABOVE PRE-CORONA LEVEL OF Q4 2019 ENTERTAINMENT EXTERNAL REVENUES AND ADJUSTED EBITDA [IN EUR M] COMMENTS Q4 Q4 FY FY 2021 2020 YoY 2021 2020 YoY • Entertainment advertising business both in DACH region as well as globally recovered External Revenue
Slide 39: Dating & Video Revenue Growth Driven by The Meet Group
DATING & VIDEO SEGMENT REVENUE GROWTH DRIVEN BY CONSOLIDATION OF THE MEET GROUP DATING & VIDEO EXTERNAL REVENUES AND ADJUSTED EBITDA [IN EUR M] COMMENTS Q4 Q4 FY FY 2021 2020 YoY 2021 2020 YoY • Dating & Video segment with strong double-digit percent revenue growth in FY External Revenues 133 132 +1
Slide 40: Commerce & Ventures Organic Revenue Growth of +3%
COMMERCE & VENTURES BUSINESS WITH ORGANIC REVENUE GROWTH OF +3% IN FY 2021 COMMERCE & VENTURES EXTERNAL REVENUES AND ADJUSTED EBITDA [IN EUR M] COMMENTS Q4 Q4 FY FY 2021 2020 YoY 2021 2020 YoY • Commerce & Ventures segment revenues declined by -10% in FY 2021 due to External Revenues 297 363 -18% 85
Slide 41: Unique Media Investment Model Foundation for Diversification
UNIQUE MEDIA INVESTMENT MODEL HAS BEEN THE FOUNDATION FOR THE GROUP‘S CAPITAL EFFICIENT DIVERSIFICATION Loans/ Total Preferred Equity Purchase Disposal Total IC net IRR Revenues Adj. EBITDA [in EUR m] Invested invested capital participation Price proceeds of proceeds (weighted) FY 2021 FY 2021 capit
Slide 42: 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
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ProSiebenSat.1 Media — FY2021 Earnings Presentation on 6ix

Prosiebensat.1 Media — FY2021 Earnings Presentation

Slide 1: Results Full Year 2021 Presentation

Slide 2: Key Messages FY 2021

Slide 3: FY 2021: Record Year for ProSiebenSat.1

Slide 4: Financial Overview

Slide 5: Strong Group Revenue Growth with Entertainment as Main Contributor

Slide 6: Significant Adjusted EBITDA Growth Reflecting Strong Recovery of Advertising

Slide 7: Substantial Increase in Adjusted Net Income by +64% to EUR 362m

Slide 8: Year-End Leverage Reduced to 2.2x and Back in Target Range

Slide 9: Clear Investment Guidelines Contributing to ≥15% P7S1 ROCE Target

Slide 10: Group Strategy

Slide 11: Significant Revenue Growth and Diversification in the Past 10 Years

Slide 12: Continuing to Grow at a CAGR of +4-5% Organically

Slide 13: Our Ambition: Leading DACH Digital-First Video Entertainment Provider

Slide 14: Maximizing Reach with Local, Live and Relevant Content

Slide 15: Differentiated Content & Platform Strategy Creates Moments That Matter

Slide 16: Outperforming Peers on Linear Channels and Creating Digital Traction

Slide 17: Pushing Live, Local and Relevant Content

Slide 18: Leveraging All Platforms, Own and Third Party

Slide 19: Deep-Dive: Joyn Is the Cornerstone of Our Digital Strategy

Slide 20: We Monetize Our Relevant Reach Directly and Indirectly

Slide 21: Direct Monetization Supported by Strong Market Fundamentals

Slide 22: Direct Monetization Translates into Ad Share Gains vs. Key Competitor

Slide 23: Monetizing Indirectly by Unlocking Platform Value Potential

Slide 24: Investment Activities Are Highly Synergistic with Entertainment

Slide 25: Investing in Assets with Long-Term Structural Growth Potential

Slide 26: Value Through Sale of Asset Stakes and New Growth Pillars

Slide 27: Selectively Deploying Cash to Enhance Value Creation

Slide 28: Continuously Monitoring Assets for Best Ownership

Slide 29: Digital Transformation Enables Superior Shareholder Distributions

Slide 30: Monetization Approach Has Generated Significant Value for Investors

Slide 31: Outlook & Dividend Proposal

Slide 32: Portfolio and Currency Adjustments for FY 2021

Slide 33: Positive Financial Outlook for FY 2022

Slide 34: Dividend Proposal: Strong Increase in Adjusted Net Income

Slide 35: Committed to Creating Value for Shareholders

Slide 36: Appendix

Slide 37: Group P&L

Slide 38: Entertainment DACH Advertising Revenues Above Pre-Corona Level

Slide 39: Dating & Video Revenue Growth Driven by The Meet Group

Slide 40: Commerce & Ventures Organic Revenue Growth of +3%

Slide 41: Unique Media Investment Model Foundation for Diversification

Slide 42: Disclaimer

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