Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q3 2018 Earnings Presentation
61 slides from Prosiebensat.1 Media's earnings presentation, Nov 8, 2018
Slide 1: Q3/9M 2018 Presentation
NOVEMBER 8, 2018 Q3/9M 2018 PRESENTATION
Slide 2: Agenda
Q3 & FULL-YEAR OUTLOOK MAX CONZE – CEO AGENDA FINANCIAL UPDATE DR. JAN KEMPER – CFO STRATEGY PREVIEW MAX CONZE – CEO 2
Slide 3: Q3 & Full-Year Outlook
NOVEMBER 8, 2018 Q3 & FULL-YEAR OUTLOOK MAX CONZE – CEO
Slide 4: 150 Days in Business
PARSHIP ELITEPARTNER CONSUMERS CLIENTS & AGENCIES PLAYOUT CENTER STUDIO71 ESOME DMEXCO CONSUMERS AMORELIE ENTERTAINERS 150 DAYS IN BUSINESS 4
Slide 5: Our Group Financials for Q3 2018
OUR GROUP FINANCIALS FOR Q3 2018 [in EUR m] [in EUR m] [in EUR m] +1% -13% -24% CONSOLIDATED REVENUES ADJUSTED EBITDA ADJUSTED NET INCOME +4% 20% portfolio/ adjusted currency EBITDA adjusted margin 883 892 202 175 99 75 Q3 Q3 Q3 Q3 Q3 Q3 2017 2018 2017 2018 2017 2018 5
Slide 6: Segment Financials
SEGMENT FINANCIALS External revenue growth Group and segments Q1-Q3 2018 GROUP ENTERTAINMENT CP & GS / RED ARROW STUDIOS COMMERCE / NUCOM GROUP 6% 6% 20% 20% 15% 15% 4% 4% 10% 10% 2% 2% 5% 5% 0% 0% 0% 0% -5% -2% -2% -5% -10% -4% -4% -10% -15% -6% -6% -15% -20% Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Bet
Slide 7: Outlook Q4/FY 2018
OUTLOOK Q4/FY 2018 PREVIOUS NEW FY 2018 OUTLOOK Q4 2018 OUTLOOK FY 2018 OUTLOOK GROUP low to mid single- low single-digit low single-digit Reported REVENUES digit increase (%) decrease (%) decrease (%) Portfolio and mid single-digit low to mid single- low single-digit currency increase (%) digit inc
Slide 8: Financial Update
NOVEMBER 8, 2018 FINANCIAL UPDATE DR. JAN KEMPER – CFO
Slide 9: Group Financials Comments
+4% GROUP FINANCIALS portfolio/ currency adj. revenue growth in Q3 2018 External revenues and adjusted EBITDA COMMENTS [in EUR m] • +4% and +1% portfolio and currency Q3 2018 Q3 2017 YoY 9M 2018 9M 2017 YoY adjusted revenue growth in Q3 and 9M 2018 based on dynamic revenue growth of key assets in ou
Slide 10: Entertainment: Stable Adjusted EBITDA in First Nine Months
-2% portfolio/ ENTERTAINMENT: STABLE ADJUSTED currency adj. revenue EBITDA IN FIRST NINE MONTHS DESPITE development in Q3 2018 CHALLENGING AD ENVIRONMENT External revenues and adjusted EBITDA COMMENTS [in EUR m] • TV advertising revenues stable both in Q3 Q3 2018 Q3 2017 YoY 9M 2018 9M 2017 YoY and
Slide 11: Content Production & Global Sales: Notable Improvement in Q3
+14% CONTENT PRODUCTION & GLOBAL SALES: portfolio/ currency adj. NOTABLE IMPROVEMENT IN Q3 2018 revenue growth in Q3 2018 External revenues and adjusted EBITDA COMMENTS [in EUR m] • Content Production & Global Sales Q3 2018 Q3 2017 YoY 9M 2018 9M 2017 YoY segment returned to double-digit revenue gro
Slide 12: Commerce: Organic Segment Revenue Growth Accelerated in Q3
+14% COMMERCE: ORGANIC SEGMENT REVENUE portfolio/ currency adj. GROWTH ACCELERATED IN Q3 2018 revenue growth in Q3 2018 External revenues and adjusted EBITDA COMMENTS [in EUR m] • Strong organic revenue growth of +14% in Q3 2018 Q3 2017 YoY 9M 2018 9M 2017 YoY Q3 driven by all key verticals • Digita
Slide 13: First Joint Acquisition with General Atlantic: eharmony
FIRST JOINT ACQUISITION WITH GENERAL ATLANTIC TO BUILD GLOBAL LEADER IN ONLINE MATCHMAKING KEY VERTICAL OF NUCOM STRENGTHENED EUR ▪ 100% acquisition at adjusted EV of USD 85m with attractive >200m valuation of <1.0x revenues annual revenues1) ▪ Through the acquisition of eharmony2), PEG becomes glob
Slide 14: Highly Experienced Parship Management Team with Strong Integration Track Record
HIGHLY EXPERIENCED PARSHIP MANAGEMENT TEAM WITH STRONG INTEGRATION TRACK RECORD 42% AVERAGE YEARLY EBITDA INCREASE OVER LAST 3 YEARS AT DRIVEN BY RAPID INTEGRATION AND HIGH SINGLE-DIGIT AVERAGE YEARLY REVENUE GROWTH TURNAROUND OF ELITEPARTNER Revenues and EBITDA1) KPI development 2015-20172) [in EUR
Slide 15: Increase in Net Debt Mainly Driven by M&A Capex
INCREASE IN NET DEBT MAINLY DRIVEN BY M&A CAPEX IN THE PAST 12 MONTHS Net financial debt FINANCIAL LEVERAGE [in EUR m] -EUR 294m net M&A-related capex 1.8x 2.1x -359 65 456 -442 -2,189 -45 -1,865 09/30/2017 2017 M&A capex NuCom FCF before Other 09/30/2018 dividend transaction M&A not reflected in M&
Slide 16: We Update Our Financial Outlook 2018
WE UPDATE OUR FINANCIAL OUTLOOK 2018 – REFLECTING RECENT DECONSOLIDATIONS AND ORGANIC REVENUE DEVELOPMENT PREVIOUS NEW FY 2018 OUTLOOK Q4 2018 OUTLOOK FY 2018 OUTLOOK GROUP low to mid single- low single-digit low single-digit Reported REVENUES digit increase (%) decrease (%) decrease (%) Portfolio a
Slide 17: Strategy Preview
STRATEGY PREVIEW MAX CONZE – CEO
Slide 18: Key Questions You Have Raised
“THE TV ADVERTISING INDUSTRY IS KEY QUESTIONS YOU HAVE RAISED FACING DECADE-LONG CHALLENGES. TRANSFORMATIONAL CHANGES ? NEED TO BE CONSIDERED.” (INVESTOR) STRATEGIC PRIORITIES: WHAT ARE THE MOST IMPORTANT STRATEGIC PRIORITIES FOR P7S1? “EUROPEAN BROADCASTERS […] HAVE LESS TO LOSE AND MUCH MORE TO GA
Slide 19: My First Days – Key Observations
MY FIRST 150 DAYS – KEY OBSERVATIONS HARD REALITIES GREAT STRENGTHS TO BUILD ON NO GROWTH IN ENTERTAINMENT AND CONTENT PRODUCTION POWERFUL 9.7M . ENTERTAINMENT BRANDS & AVERAGE TOTAL REACH OF ONE EPISODE1) HEAVILY DEPENDENT ON TV ADVERTISING ADVERTISING . PLATFORMS # 1 MARKETER2) LIMITED REVENUES GE
Slide 20: World of Entertainment Is Changing
WORLD OF ENTERTAINMENT IS CHANGING MONTHLY REACH 91 89 88 86 [A 14-69, IN %] 2015-2018E1) 60 61 48 42 28 32 10 16 LINEAR TV FREE ONLINE VIDEO PAY VOD TOTAL VIDEO USAGE BY DEVICE 2018E2) [A 14-29, IN %] 60% 17% 23% TV PC/LAPTOP SMARTPHONE/ TABLET ANYTIME, ANYWHERE, ANY DEVICE MORE MEDIA CONSUMPTION T
Slide 21: TV Plays a Key Role in the Ecosystem
TV PLAYS A KEY ROLE IN THE ECOSYSTEM VIEWING = MONTHLY TIME1) REACH1,2) [A 14-69, IN MIN] [A 14-69, IN %] TV 233 228 227 225 86% 200-210 78- 83% 63- 35-40 68% FREE ONLINE 22 61% VIDEO 19 40- 35-40 45% 13 13 16 32% 5 PAY-VOD 3 11 2015 2016 2017 2018E 2023E3) TV AD MARKET 4.4 4.6 4.6 4.6 GERMANY4) [IN
Slide 22: A Big Sandbox to Play In
A BIG SANDBOX TO PLAY IN ADVERTISING MARKET1) ENTERTAINMENT MARKET2) E-COMMERCE MARKET/PLATFORMS3) [IN EUR BN, GER] [CONSUMER SPEND, IN EUR BN, GER] [IN EUR BN, GER] P7S1 P7S1 P7S1 MARKET MARKET MARKET SHARE SHARE SHARE ~10% <1% <1% 89 7% 60 2% 40 36 2% 23 29 21 -4% 30 -1% 10 13 13 9% 11 10% 8 6 201
Slide 23: Agenda
AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT © ProSieben/Andreas Franke 23
Slide 24: Our Vision: Consumer-Centric Entertainment and Commerce Champion
OUR VISION: CREATE A CONSUMER-CENTRIC ENTERTAINMENT AND COMMERCE CHAMPION ENTER- TAINMENT COMMERCE & CONTENT CONSUMERS CONSUMER-LED & OBSESSED NEED CONSUMERS CONTENT-LED LOVE DIGITAL FIRST TOTAL REACH GROWTH-DRIVEN PASSIONATE CREATORS 24
Slide 25: Our Ambition: Accelerate Growth
OUR AMBITION: ACCELERATE GROWTH 1) OUR STARTING POINT AMBITION IN ~5+ YEARS INCL. BOLT-ON M&A REVENUES ADJ. EBITDA EQUITY VALUE REVENUES ADJ. EBITDA EQUITY VALUE [EUR] 2) [EUR] [EUR] 3) [EUR] [EUR] [EUR] 4BN 1BN 5BN 6BN 1.5BN … NON-ADVERTISING DIGITAL SMART ADVERTISING SHARE OF NON-ADVERTISING DIGIT
Slide 26: Strategic Priorities Across Our Three Pillars
STRATEGIC PRIORITIES ACROSS OUR THREE PILLARS ENTERTAINMENT NUCOM GROUP ONE ENTERTAINMENT HOLISTIC CONSUMER-FIRST APPROACH CONSUMER NEEDS LARGE MARKETS SERVING STRONG NEEDS LOCAL CONTENT MORE LIVE, MORE LOCAL, MORE OWN IP RED ARROW FOCUSED PORTFOLIO DIGITAL ATTACK ASSETS ALONG FOUR CORE VERTICALS ST
Slide 27: Agenda
AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT © ProSieben/Andreas Franke 27
Slide 28: NuCom Group Snapshot
NUCOM GROUP SNAPSHOT EUR 0.8 BN REVENUES1) | EUR 0.1 BN ADJ. EBITDA1) | EUR 1.8 BN VALUATION2) | 35 M MONTHLY VISITS3) EXPERIENCE & CONSUMER ADVICE MATCHMAKING GIFT VOUCHERS BEAUTY & LIFESTYLE SAVINGS LOVE EXPERIENCE WELL-BEING 83% # W/ LARGEST 1 > 21K DIFFERENT >10X AIDED BRAND REVENUES AWARENESS4)
Slide 29: NuCom Group Building Blocks: Boost Total Value
NUCOM GROUP BUILDING BLOCKS: BOOST TOTAL VALUE ORGANIC REVENUE CAGR: +10-15% EXTERNAL REVENUES (INCL. M&A ~20% CAGR) ~2BN [IN EUR]1) ACTIVE M&A PIPELINE GROW VERTICALS SERVING STRONG BEAUTY & LIFESTYLE CONSUMER NEEDS EXPERIENCE & GIFT VOUCHERS EXECUTE SMART AND MATCH- ATTRACTIVE M&A MAKING ADJUSTED
Slide 30: Clear Synergy Case for NuCom Group and Entertainment
CLEAR SYNERGY CASE FOR NUCOM GROUP AND ENTERTAINMENT SERVE CONSUMER NEEDS LEVERAGE MEDIA POWER: LARGEST SOM CUSTOMER NUCOM DRIVE DIGITAL AND CULTURAL ENTER- TRANSFORMATION GROUP TAINMENT EXPLOIT CONSUMER DATA (E.G. NETID) FUEL NEW BUSINESS MODELS AND SYNERGIES BUILDING A CONSUMER-CENTRIC AND TECHNOL
Slide 31: Agenda
AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT © ProSieben/Andreas Franke 31
Slide 32: Entertainment Snapshot
ENTERTAINMENT SNAPSHOT STRONG CORE TO BUILD ON STRONG DIVERSIFIED LEADING ENTERTAINMENT DISTRIBUTION AD SALES PLAYER1) BRANDS1) PORTFOLIO1) 2.7BN PAST CAGR 2009-2016 CURRENT CAGR 2016-2018E FUTURE CAGR 2018-2023+ ENTERTAINMENT REVENUES2) +2-3% ±0% +0-5% ENTERTAINMENT KPIs TODAY3) TODAY3) 10% 5% FUTU
Slide 33: Future-Fit Entertainment
FUTURE-FIT MONETIZATION ENTERTAINMENT REACH CONTENT CONSUMER TOTAL DIGITAL AND CONSUMER FIRST LOCAL CONTENT TOTAL MONETIZATION LINEAR REACH 33
Slide 34: Expand in Attractive Live and Local Genres
CONTENT EXPAND IN ATTRACTIVE LIVE AND LOCAL GENRES FACTUAL SHOW/REALITY COMEDY FICTION TREND SPORTS +80M EUR EINSTEIN © SAT.1/Wolfgang TAFF © ProSieben/Benedikt Müller THE VOICE OF GERMANY © SAT.1/Andre Kowalski LUKE DIE WOCHE UND ICH © SAT.1/Willi Weber Ennenbach P.A. ADDITIONAL INVEST IN LOCAL CON
Slide 35: Right Balance of U.S. Content and Local Production
CONTENT RIGHT BALANCE OF U.S. CONTENT AND LOCAL PRODUCTION ▪ 56% U.S. AND 44% LOCAL CONTENT GRID SHARE TODAY1) ▪ INCREMENTAL LOCAL CONTENT INVESTMENT OF ~EUR 80M P.A. ▪ U.S. CONTENT CONTINUES TO BE IMPORTANT: RIGHT LEVEL OF QUALITY AND RIGHTS NEEDED SECURE FUTURE OUTPUT DEALS WITH FAVORABLE PRIC
Slide 36: Expand to Total and Smart Reach
REACH EXPAND TO TOTAL AND SMART REACH TODAY FUTURE LINEAR TV REACH TOTAL REACH + SMART REACH P7S1 WITH STRONG PRESENCE COMBINE LINEAR TV REACH MAKE TOTAL REACH SMART: IN TV REACH WITH DIGITAL REACH TARGETABLE AUDIENCES . . BASED ON DATA INSIGHTS MASS REACH MEDIUM; DESPITE COMPENSATING DECLINE OF . S
Slide 37: Boost Total Reach by All-Out Digital Attack
REACH BOOST TOTAL REACH BY ALL-OUT DIGITAL ATTACK FAN COMMUNITIES AGGREGATOR PLATFORMS DIGITAL CHANNELS 95M TARGET: 10BN VIDEO VIEWS OF TOP 5 FORMATS1) 10M MONTHLY VIDEO VIEWS USERS2) WORLDWIDE3) GERMANY´S NEXT TOPMODEL © ProSieben/Willi Weber OWNED & OPERATED AGGREGATOR PLATFORM PRODUCTION HOUSE WI
Slide 38: 7TV: Build Joint Aggregator Platform
REACH 7TV: BUILD JOINT AGGREGATOR PLATFORM LARGE AMOUNT OF LOCAL CONTENT AIMING FOR . 10M USERS EXCLUSIVE FILMS, ORIGINALS & SERIES (~2.5M EXISTING . USER BASE1)) LIVE SHOWS & SPORT EVENTS SIMPLE PRICING CONCEPT >200 PEOPLE EXCLUSIVE WORKING ON PREMIUM ENTERTAINMENT AND (€) SPORTS CONTENT AND PROJEC
Slide 39: Total Monetization: One Advertising Portfolio
MONETIZATION TOTAL MONETIZATION: ONE ADVERTISING PORTFOLIO AWARENESS ENGAGEMENT CONVERSION LINEAR TV CAMPAIGNS & SPECIAL ADS TV & TV ADDRESSABLE TV ADDRESSABLE TV SWITCH-INS & SPOTS VIDEO DIGITAL VIDEO ADS MARKET SEGMENTS DOOH OUTDOOR SCREENS SCREENS AT RETAIL SERVED DIGITAL BY P7S1 NEW DATA-DRIVEN
Slide 40: 360° Monetization of the Full Value Chain
MONETIZATION 360° MONETIZATION OF THE FULL VALUE CHAIN CUT-IN ON TV ONLINE MOBILE PR SPONSORINGS $ >40% OF AD REVENUES WITH GERMANY’S NEXT TOPMODEL FORMAT VIA SPECIAL ADS1) TV ADVERTORIAL MUSIC +30% EVENTS MARK-UP POSSIBLE ON SPECIAL PRODUCT PLACEMENT ADS PRICING VS. CLASSIC ADS2) +5% SOCIAL PROMO L
Slide 41: Smart Reach as Key Monetization Lever
MONETIZATION SMART REACH AS KEY MONETIZATION LEVER TOTAL REACH SMART REACH ADD. TV DIGITAL SMART REACH INVENTORY ~20% ~100% + OF ADDRESSABLE TV HOUSEHOLDS IN 20191) OF DIGITAL INVENTORY BY 20191) ADDRESSING TOTAL ADDRESSING INDIVIDUAL AUDIENCES BASED ON E.G., CHANNEL TARGET AUDIENCES BASED ON DATA I
Slide 42: Summing It Up: Entertainment Building Blocks
SUMMING IT UP: ENTERTAINMENT BUILDING BLOCKS ORGANIC REVENUE CAGR: +0-5% EXTERNAL ~3.2BN REVENUES (INCL. M&A UPPER END OF RANGE) [IN EUR]1) M&A DISTRIBUTION/ SUBSCRIPTION/ ADJACENT SMART & AD TECH ADJUSTED DIGITAL EBITDA: ~2.7BN 360° MONET./ ~1BN CORE PRICING ADJUSTED TV AD EBITDA: ~0.9BN Q3 2018 LT
Slide 43: Agenda
AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT © ProSieben/Andreas Franke 43
Slide 44: Red Arrow Studios Snapshot
RED ARROW STUDIOS SNAPSHOT OUR BUSINESS GERMAN-SPEAKING INTERNATIONAL DIGITAL CREATION CONTENT CREATION CONTENT CREATION AND INFLUENCER AND DISTRIBUTION MANAGEMENT LEADING 20 700+ 10BN GERMAN PRODUCTION PRODUCTION INT. SALES GLOBAL MONTHLY COMPANY1) COMPANIES CLIENTS VIDEO VIEWS2) ~0.5BN EUR REVENUE
Slide 45: New Direction: Red Arrow Studios
NEW DIRECTION: RED ARROW STUDIOS INTERNATIONAL DIGITAL CREATION GERMAN-SPEAKING CONTENT CREATION AND INFLUENCER CONTENT CREATION AND DISTRIBUTION MANAGEMENT RAS SHARE OF P7S1’S LATEST U.S./UK PICK-UPS1) LOCAL COMMISSIONED CONTENT >1,300 >30% CHANNELS 2023+ WORLDWIDE2) +10BN 13% MONTHLY 2018 VIDEO VI
Slide 46: Red Arrow Studios Building Blocks
RED ARROW STUDIOS BUILDING BLOCKS ORGANIC REVENUE CAGR: +5-10% EXTERNAL REVENUES (INCL. M&A ~10% CAGR) ~0.8BN [IN EUR]1) M&A STUDIO71 RED ARROW STUDIOS INTERNATIONAL ADJUSTED EBITDA: REDSEVEN ~0.5BN ~80M ADJUSTED EBITDA: ~20M Q3 2018 LTM 2023+ 13% >30% RAS SHARE OF P7S1’S LOCAL RAS SHARE OF P7S1’S L
Slide 47: Agenda
AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT © ProSieben/Andreas Franke 47
Slide 48: Recap: Group Growth Ambitions
RECAP: GROUP GROWTH AMBITIONS 1) OUR STARTING POINT AMBITION IN ~5+ YEARS INCL. BOLT-ON M&A REVENUES ADJ. EBITDA EQUITY VALUE REVENUES ADJ. EBITDA EQUITY VALUE [EUR] 2) [EUR] [EUR] 3) [EUR] [EUR] [EUR] 4BN 1BN 5BN 6BN 1.5BN … NON-ADVERTISING DIGITAL SMART ADVERTISING SHARE OF NON-ADVERTISING DIGITAL
Slide 49: Confirmed Mid-Term Targets
CONFIRMED MID-TERM TARGETS ENTERTAINMENT MORE LOCAL CONTENT ON LINEAR AND DIGITAL INVESTMENTS IN 2019 IN CHANNELS TO MONETIZE TOTAL & SMART REACH ORDER TO DRIVE HIGHER +0-5% REVENUE GROWTH THEREAFTER MID-SINGLE EXTERNAL REVENUE GROWTH CAGR (ORGANIC) DIGIT % RED ARROW STUDIOS P7S1 GROUP REVENUE INCRE
Slide 50: Building Blocks of Group's Target Revenues
BUILDING BLOCKS OF GROUP’S TARGET REVENUES MID SINGLE-DIGIT REVENUE CAGR (PLUS M&A) EXTERNAL REVENUES [IN EUR]1) ~0.3BN ~6BN RED ARROW AMBITION ~0.5BN STUDIOS LEVEL BASED ON MID-TERM REVENUE GROWTH ENTERTAINMENT ~0.1BN TARGETS AND ~1.2BN FUTURE M&A NUCOM GROUP ~0.1BN ~4BN ADJUSTED EBITDA: ~0.3BN ADJ
Slide 51: 2019 Investments for Growth
2019 INVESTMENTS FOR GROWTH AMOUNT FY 2019 INVESTMENTS SAVINGS TIZATION REACH CONTENT ▪ MORE LOCAL CONTENT TO GROW REACH ACROSS ALL PLATFORMS -EUR 80M ▪ INCREASED RELEVANCE AND DIFFERENTIATION FROM COMPETITORS GROWTH/ MONE- (DIGITAL) ▪ STRENGTHEN DIGITAL ENTERTAINMENT FOOTPRINT & GROW DISTRIBUTION -
Slide 52: Preliminary FY 2019 Outlook
PRELIMINARY FY 2019 OUTLOOK ENTERTAINMENT RETURN TO REVENUE +0-5% GROWTH, ADJ. EBITDA TO DECLINE BY EUR 70M (-EUR 50M ON GROUP LEVEL) MID-SINGLE MID-TERM EXTERNAL REVENUE GROWTH (CAGR) DIGIT % RED ARROW STUDIOS P7S1 GROUP REVENUE ✓ GROWTH (REPORTED) +5-10% MID-TERM EXTERNAL REVENUE GROWTH (CAGR) 22-
Slide 53: We Aim for an Annual Total Shareholder Return of +10-15%
WE AIM FOR AN ANNUAL TOTAL SHAREHOLDER RETURN OF +10-15% ORGANIC GROWTH EPS GROWTH M&A THROUGH SHARE BUYBACK TOTAL +10-15% P.A. AMBITION SHAREHOLDER LEVEL RETURN ADJUSTED EPS GROWTH DIVIDEND YIELD PLUS DIVIDEND YIELD 50% PAY-OUT RATIO FINANCIAL LEVERAGE TARGET RANGE UNCHANGED: 1.5 - 2.5X Source: P7S
Slide 54: How Will We Execute to Win?
HOW WILL WE EXECUTE TO WIN? #1 CLEAR GAME PLAN AND KPIs #2 STREAMLINED ORGANIZATION #3 SIMPLIFIED OPERATIONS #4 DISCIPLINED CASH USAGE #5 PARTNER FOR SCALE GALILEO © ProSieben #6 TECH ENGINE 54
Slide 55: To Sum It All Up
TO SUM IT ALL UP AMBITION IN ~5+ YEARS: EUR 6 BN REVENUES | EUR 1.5 BN ADJ. EBITDA | +10-15% TSR P.A.1) ENTERTAINMENT: A FUTURE-FIT GERMAN ENTERTAINMENT BUSINESS THAT IS MORE LOCAL, MORE DIGITAL AND MORE SMART REACH NUCOM GROUP: A RAPIDLY SCALED DIGITAL PLATFORM AND E-COMMERCE CHAMPION RED ARROW STU
Slide 56: Slide 56
Slide 57: Q3 Appendix
ProSiebenSat1 eH MediaSE NOVEMBER 8, 2018 Q3 APPENDIX
Slide 58: Group P&L
GROUP P&L [in EUR m] Q3 2018 Q3 2017 Δ 9M 2018 9M 2017 Δ Revenues 892 883 +1% 2,685 2,755 -3% Adjusted EBITDA 175 202 -13% 634 661 -4% Reconciling items 12 79 -85% -84 41 n/a EBITDA 187 281 -33% 550 702 -22% Depreciation and amortization -54 -108 -50% -157 -215 -27% Thereof PPA -12 -45 -73% -36 -72
Slide 59: Financial Policy Framework Aligned with Investment Requirements and to Drive EPS Growth
FINANCIAL POLICY FRAMEWORK ALIGNED WITH INVESTMENT REQUIREMENTS AND TO DRIVE EPS GROWTH FRAMEWORK UNTIL FRAMEWORK FOR FY 2018 FY 2017 AND BEYOND 80-90% 50% Dividend of adjusted net income of adjusted net income1) New investments limited residual amount of meaningful share of FCF, (organic, M&A) FCF,
Slide 60: Details of 2018-2019 Share Buyback Program
DETAILS OF 2018-2019 SHARE BUYBACK PROGRAM ▪ ProSiebenSat.1 intends to carry out a share buyback program based on the authorisation granted by the Annual General Meeting 2015 SHARE BUYBACK PROGRAM TO ▪ Maximum total purchase price of up to EUR 250m over 12-24 months with the option to cease the buyb
Slide 61: 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 objectives of mana