ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Investor Day (October 2015)
100 slides from ProSiebenSat.1 Media's investor day presentation, Oct 15, 2015
Slide 1: Growing to the next level
October 15, 2015 Growing to the next level Capital Markets Day 2015 Broadcasting German-speaking | October 15, 2015 | | Page 1
Slide 2: TV Operations
October 15, 2015 Growing to the next level Capital Markets Day 2015 Thomas Ebeling TV Operations | October 15, 2015 | | Page 2
Slide 3: TV operations
TV operations 1 2 3 4 Performance Market Strategic Summary review & dynamics outlook achievements | October 15, 2015 | | Page 3
Slide 4: Key achievements since last year's Capital Markets Day
Key achievements since last year’s Capital Markets Day Increased ratings Expanded lead Secured top content Δ 5.0%pts >29% Strengthened female Grew small channels Leveraged digital ∑+1.0%pts | October 15, 2015 | Note: all audience shares target group A14-49, 9M 2015 | Page 4
Slide 5: Best 9 months ratings performance in the last ten years
Best 9 months ratings performance in the last ten years … Audience share (A14-49) [9M, in %] 29.5 28.6 28.6 28.6 28.3 28.4 27.9 27.9 27.7 27.6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Basis: All German TV households (Germany + EU), A 14-49 years, Mon-Sun, full day 3-3h; P7S1 w/o N24 & w/o |
Slide 6: Strong position in the German TV market
… with a strong position in the German TV market … Audience share1) Share of advertising2) [9M 2015, in %] ∆ [9M 2015, in %] ∆ +5.0 +11.2 %pts %pts 29.5 44.5 24.5 33.3 1) Basis: All German TV households (Germany + EU), A 14-49 years, Mon-Sun, full day 3-3h; RTL | October 15, 2015 | Mediengruppe w/o
Slide 7: Growing lead over key competitor
… and growing lead over key competitor Audience share Audience share Delta. [9M, in %] [9M, in %] [9M, in %] +1.9%pts 29.5 28.4 -1.9%pts Δ 5.0%pts 27.6 26.4 24.6 24.5 Δ 3.8 Δ 1.2 2013 2014 2015 2013 2014 2015 2013 2014 2015 vs. Basis: All German TV households (Germany + EU), A 14-49 years, Mon-Sun,
Slide 8: Outstanding performance driven by top content
Outstanding performance driven by top content … Mega Blockbuster Event series Entertainment e.g. Hänsel & Gretel: Hexenjäger (Mar. 1, 2015) e.g. The 100 (Jul. 22, 2015) e.g. Schlag den Raab (Sep. 12, 2015) 9M 2015 9M 2015 9M 2015 up to up to up to 24.4% 22.8% 22.5% Reality Factual German fiction e.g
Slide 9: Increasing female audience share
…and increasing female audience share Female 14-49 yrs Female 14-29 yrs [9M, in %] [9M, in %] +1.4%pts +1.9%pts 34.1 32.7 30.4 28.5 2014 2015 2014 2015 Basis: All German TV households (Germany + EU), Mon-Sun, full day 3-3h | Page 9 | October 15, 2015 | Source: AGF in cooperation with GfK/TV Scope/P7
Slide 10: Successfully leveraging digital synergies to drive viewer loyalty
Successfully leveraging digital synergies to drive viewer loyalty Successful digital TV offerings #1 TV company in German social media [H1 2015 vs. H1 20141)] • ~25 million fans overall • ProSieben = #1 TV fan page .de .de in Germany .de .de • ~3 million followers overall • ProSieben = #1 media chan
Slide 11: TV operations
TV operations 1 2 3 4 Performance Market Strategic Summary review & dynamics outlook achievements | October 15, 2015 | | Page 11
Slide 12: TV will remain the lead medium with attractive online offerings
TV will remain the lead medium with attractive online offerings and differentiated content as key success factors Online video market • New platforms/technologies drive customer experience and offer additional ways of content exploitation… TV/video consumption • …driving reach of TV related content
Slide 13: TV related consumption with increasing potential until 2020
TV related consumption with increasing potential until 2020 … Daily TV and video consumption1) Online non-TV related Ad target group (A 14-49) Young segment (A 14-29) (including PayVoD) [Ø daily video viewing in minutes] [Ø daily video viewing in minutes] Online TV related (streaming & catch-up) 259
Slide 14: TV panel upgrade to reflect video consumption
TV panel upgrade to adequately reflect video consumption Planned TV panel adaptions Complete coverage of 2nd, 3rd, … TV 2015 More TV sets usage situations Upgrade of single household 2015 measurement Measured reach in +10% young segment (A 14-29) Panel Inclusion of German-speaking non-EU 01/2016
Slide 15: Importance of TV supported by 2nd screen & social media
Importance of TV supported by 2nd screen & social media Importance of TV 2nd screen & social media impact of daily video consumption is higher daily TV consump- 86% TV-related (A 14-49) 50% tion of “multi-screeners”1) say TV will increase or recommend ProSieben due 86% maintain importance 61% to soc
Slide 16: Non-TV related online offerings with low additional reach
Non-TV related online offerings with low additional reach … TV & YouTube reach – A 14-49 TV & YouTube reach – A 14-29 [Ø monthly reach in m] ∆+2.0% [Ø monthly reach in m] 31.2 31.8 ∆+4.7% 11.5 12.0 A 14-49 A 14-29 A 14-49 A 14-29 & & Additional reach through YouTube Additional reach through YouTube
Slide 17: PayVoD consumption expected to remain minor
… and PayVoD consumption expected to remain minor PayVoD consumption – A 14-49 PayVoD consumption – A 14-29 [Ø daily video viewing in min] [Ø daily video viewing in min] 259 217 4% 2% 187 162 5% 3% 96% 98% 95% 97% 2015E 2020E 2015E 2020E PayVoD consumption share PayVoD consumption share Other video
Slide 18: Online/mobile usage driving reach of TV related content
Online/mobile usage is driving reach of TV related content Example Content reach: P7 linear TV + online/mobile [views in m] season 10 (2015) Linear TV1) 56.9 + Online live streaming2) 1.0 Owned & operated + Full episode catch-up2) 17.7 online + Short clips2) 12.4 Total reach 88.0 +55% vs. TV only 1)
Slide 19: Broad supply secures attractive content offering
Broad supply secures attractive content offering Examples Traditional licensors TV producers Digital US majors Independents International National MCNs | October 15, 2015 | P7S1-owned | Page 19
Slide 20: The German TV market remains strong
The German TV market remains strong TV viewing expected to remain stable in the coming years High quality content typically available on FTA TV Lower Pay TV penetration, limited willingness to pay Online video consumption incremental to TV viewing Studio contracts with supporting rights (incl. holdb
Slide 21: TV operations
TV operations 1 2 3 4 Performance Market Strategic Summary review & dynamics outlook achievements | October 15, 2015 | | Page 21
Slide 22: Key strategic initiatives for sustainable growth
Key strategic initiatives for sustainable growth 1 Broaden core channels and grow/launch small channels 2 Ensure future-ready program mix 3 Secure top license content with attractive rights 4 Increase share of own content 5 Execute value-based production and other cost efficiency measures 6 Digitall
Slide 23: Successfully broadening our channel portfolio
1 2 3 4 5 6 Broaden channel portfolio Successfully broadening our channel portfolio … Broaden core channels Increase female share Become younger Increase relevance 10.9% 9.4% 5.3% Grow small channels Focus on female Strengthen elder female Become broader 1.4% 1.4% 1.1% 9M 2015 audience shares1) 1) B
Slide 24: Continuing to launch new small channels
1 2 3 4 5 6 Broaden channel portfolio … and continuing to launch new small channels Approach Target groups Elderly/best agers Innovative low cost, Families & mainstream mono-thematic channels middle class for stable target groups that are attractive for Females advertisers Less digital Millennials |
Slide 25: Targeted program mix and strategy
1 2 3 4 5 6 Future program mix Targeted program mix and strategy Targeted program mix 2020 Program strategy Licensing (US/international) ~50% • Possibility for multi-channel & multi-slot usage of formats Local lighthouse & live formats ~15% • Broad (re-)utilization in mix with Repeatable quality ent
Slide 26: Multi-functionality to improve lighthouse economics
1 2 3 4 5 6 Future program mix Multi-functionality as a lever to improve lighthouse economics Lighthouse efficiency increase – example “Celebrity Big Brother” on SAT.1 Complementary format on sixx Ø 4.9% (up to 7.9%) Online offerings • 24/7 live feed • Clips/catch-up • Daily webshow & newsfeed Conte
Slide 27: Multi-year output deals secure license supply
1 2 3 4 5 6 Top license content Multi-year output deals secure high quality license supply Examples Key TV program already secured beyond 2019 | October 15, 2015 | | Page 27
Slide 28: Program rights management
1 2 3 4 5 6 Top license content Program rights management to protect our leadership position …qualifiers to ensure top content inflow Multi-channel & Continuous strong digital optimization of …holdbacks & windowing terms to protect platforms acquisitions FTA with exclusivity secure efficient with… w
Slide 29: Increase share of own content
1 2 3 4 5 6 Own content Increase share of own content Examples Develop according to channel Own development & needs, control total rights & commissioning increase content sales potential Increase production value and International control of rights at reasonable co-production costs Secure feature fi
Slide 30: Multiple cost efficiency measures in place
1 2 3 4 5 6 Efficieny measures Multiple cost efficiency measures in place Execute on value based production targets Rebalance commissioned portfolio Avoid inefficient one-offs Minimize high-risk lighthouse investments without payback Increase share of repeatable quality entertainment & reality forma
Slide 31: Digitally enhanced viewer experience to drive reach
1 2 3 4 5 6 Digitally-enhanced viewer experience Digitally enhanced viewer experience to drive reach Examples 2nd screen/digital entertainment Social media Channel websites Increase engagement through live Leverage social talk to create streaming, periodic news feeds, „must see-appeal“ of format
Slide 32: TV operations
TV operations 1 2 3 4 Performance Market Strategic Summary review & dynamics outlook achievements | October 15, 2015 | | Page 32
Slide 33: Summary
Summary TV remains strong in Germany P7S1 continues to expand leadership in TV market P7S1 is well positioned by combining its efficient channel/format mix with a digitally enhanced strategy • Attractive mix of US content & cost-optimized local formats • Efficient channel portfolio & genre mix • Dig
Slide 34: TV Ad Sales
October 15, 2015 Growing to the next level Capital Markets Day 2015 Thomas Ebeling TV Ad Sales | October 15, 2015 | | Page 34
Slide 35: Agenda
Agenda 1 2 3 Key Continued TV P7S1 leading achievements market growth the market story | October 15, 2015 | | Page 35
Slide 36: Key achievements since last year's Capital Markets Day
Key achievements since last year‘s Capital Markets Day 1 2 3 P7S1 with Net TV ad market TV increasing share increasing share of with solid growth in media mix TV advertising 4 5 Dynamic net price P7S1 with leading increase in past 5 ad sales years innovations | October 15, 2015 | | Page 36
Slide 37: Continued strong performance in 2015
ProSiebenSat.1 with continued strong performance in 2015 2015 2014 TV ad market growth1) (net) ~ +2-3% ~ +2-3% TV share of advertising market2) (gross) 46.0% 44.4% Share of advertising P7S11) (gross) 44.5% 44.4% Mid single-digit Mid single-digit Net CPT P7S1 core channels1)3) increase increase 1) Ja
Slide 38: Agenda
Agenda 1 2 3 Key Continued TV P7S1 leading achievements market growth the market story | October 15, 2015 | | Page 38
Slide 39: Why TV in Germany will continue its growth story (1/2)
Why TV in Germany will continue its growth story (1/2) Combination of highest and fastest reach and strongest emotional ad impact makes TV the most effective and efficient medium with highest proven ROI Mass reach becomes increasingly important in fragmented media landscape TV remains the last mass
Slide 40: Why TV in Germany will continue its growth story (2/2)
Why TV in Germany will continue its growth story (2/2) TV is still strongly undercapitalized vs. large German print market YouTube does not add significant incremental reach to TV, since its usage is skewed towards few heavy users and German TV covers the younger audience groups Facebook with limite
Slide 41: Solid growth potential for German net TV ad market
Solid growth potential for German net TV ad market Net market growth potential Market drivers 2018 vs. 2014 [in EUR m] Growth Basic market growth/net price increase 1 ~180 National print cannibalization 2 ~290 Regional TV advertising 3 ~50 Media Individual TV premium advertising 4 tbd mix New market
Slide 42: TV ad market pushed by sound economic conditions
1 2 3 4 5 Basic market growth TV ad market pushed by sound economic conditions Net TV ad market, private consumption, GDP in Germany [change in %] Net TV ad market 4.0 Ø growth since 2012: 3.4 +2.3% 3.0 2.7 Private consumption 2.6 2.6 Ø growth since 2012: 1.9 +2.4% 2.0 1.9 1.8 GDP 1.8 1.8 Ø growth s
Slide 43: German TV growth accelerates, still catch-up potential
1 2 3 4 5 Basic market growth German TV growth accelerates, yet still catch-up potential Net TV advertising market Germany, UK and US [indexed] CAGR 115 UK 2010-14: US Germany +1.7% 110 105 +3.1% 100 +1.8% +2.7% +1.8% +0.7% +2.7% 95 2010 2011 2012 2013 2014 2015 E | October 15, 2015 | Source: Magna
Slide 44: Ad intensity in US three times higher than Germany
1 2 3 4 5 Basic market growth Ad intensity in US still three times higher than in Germany TV advertising spend per capita 2014 [Germany vs. US, in USD (net)] x3.0 206 Germany with significant 69 potential to catch up with U.S. | October 15, 2015 | Source: TV: Magna Global (June, 2015); Population: Z
Slide 45: TV is the most effective and efficient medium
1 2 3 4 5 Basic market growth TV is the most effective and efficient medium Highest effectiveness Attractive pricing Advertising effectiveness1) Net CPT ranges2) [aided advertising recall, index 100 = without contact] [in EUR] 50 2.65 TV 442 average 40 long-term ROI InStream Video 367 25 15 15 10 In
Slide 46: TV in Germany more price competitive than European peers
1 2 3 4 5 Basic market growth TV in Germany is more price competitive compared to other European top TV nations Ø Net-CPT (based on 20 seconds), adults [index] 200 189 150 120 100 100 50 0 | October 15, 2015 | Source: DDS, ZAW/AGF GfK, IREP/Mediametrie, own calculations 2014 | Page 46
Slide 47: Brand advertising on TV most cost efficient
1 2 3 4 5 Basic market growth Brand advertising on TV most cost efficient CPT comparison [A 14-39] [A 40-69] 736 266 210 112 100 173 130 100 TV Magazines Newspapers Instream video TV Magazines Newspapers Instream video | October 15, 2015 | Source: AGF, ma Presse 2014, AGOF Internet facts | Page 47
Slide 48: Strengths of TV lead to potential price upside
1 2 3 4 5 Basic market growth Strenghts of TV lead to further potential price upside Net CPT development [index: 2007 = 100] 130 • Strengths of TV • Combination of highest/fastest reach leads to top ROI for TV Market 120 • Mass reach becomes increasingly important vs. other channels: 110 • Massive p
Slide 49: TV usage share above print while ad share lags
1 2 3 4 5 National print cannibalization TV usage share above print while ad share lagging behind … TV usage share1) clearly … while TV advertising higher than print … share2) still lagging behind [share of usage, in %] [net share of advertising, in %] 37% 37% ∆ -15 ∆ %pts 22% +33 %pts 4% TV usage P
Slide 50: Media mix differs from other countries
1 2 3 4 5 National print cannibalization … which strongly differs from media mix in other countries Share of advertising: TV vs. print 2014 [as % of total media] 53 45 37 38 40 39 36 31 28 22 21 19 20 21 15 17 16 12 TV Print | October 15, 2015 | Source: Magna Global (June 2015), TV incl. Multichanne
Slide 51: EUR 1.6bn net national print spendings addressable by TV
1 2 3 4 5 National print cannibalization EUR 1.6bn net national print spendings addressable by TV German gross print advertising market 2014 [in EUR bn] 8.3 Magazines 2.9 3.5 2.2 Daily newspapers 4.8 3.2 1.6 Gross Not directly Gross regional Gross core TV Addressable net total addressable1) potentia
Slide 52: Net effect from print gain will drive TV ad market growth
1 2 3 4 5 National print cannibalization Net effect from print gain will drive TV ad market growth ~EUR 290m ~EUR 130m Digital video Print 2-3% 2018 vs. 2014 CAGR CAGR ~EUR 200-250m 35.0% -4.8% CAGR Display/social ~EUR 600m CAGR 6.6% Search/classified ~EUR 400m s CAGR 6.9% | October 15, 2015 | Estim
Slide 53: Several levers to address print advertising market
1 2 3 4 5 National print cannibalization Several levers to address print advertising market Innovative TV packages for national print customers New channels to expand target groups Smart channels to attack niche segments Combined TV/mobile offer for large freesheets market | October 15, 2015 | | Pag
Slide 54: Limited catch-up risk of German digital ad revenues vs. US
1 2 3 4 5 National print cannibalization Limited catch-up risk of German digital ad revenues vs. US Digital share of total net ad revenues 40% 30% 20% 10% 2010 2011 2012 2013 2014 2015E | October 15, 2015 | Source: Magna Global (June 2015), SevenOne Media own estimate | Page 54
Slide 55: Limited competition for branding budgets
1 2 3 4 5 National print cannibalization Limited competition for branding budgets – only by digital video Digital net ad revenues, by format Comparison: TV and video ad market [in EUR m] [in EUR m] CAGR 2014-2018: +35.0% 0.3 bn Video +36.2% Social -3.0% 2014: Display 95% of digital ad revenues not +
Slide 56: TV is leading in reach and usage
1 2 3 4 5 National print cannibalization TV is leading in reach and usage Monthly net reach & usage duration Monthly net reach 100% Private TV Total TV Internet 50% Usage (hours/month) 0 20 40 60 80 100 120 Basis: TV viewers 3+; Internet users 2+; March 2015 | Page 56 | October 15, 2015 | Source: AG
Slide 57: Almost 50% of young Germans reached by TV every day
1 2 3 4 5 National print cannibalization Almost 50% of young Germans reached by TV every day Daily TV net reach Germany 62% 56% 48% 14-29 years 14-39 years 14-49 years Monthly net reach 89% 92% 94% Note: Figures shown for 2014 | Page 57 | October 15, 2015 | Source: AGF in Cooperation with GfK, TV Sc
Slide 58: In the US, attractive TV channels for young target group missing
1 2 3 4 5 National print cannibalization In the US, attractive TV channels for young target group missing Positioning age & gender: Full day, Ø 2014, top channels US [in %; size of bubbles = Ø share % adults 14-49] Male 100 75 Old 50 Young 25 0 0 10 20 30 40 50 60 70 80 90 100 Female Note: Sample co
Slide 59: Germany has attractive TV channels for young target group
1 2 3 4 5 National print cannibalization Germany – especially P7S1 – has attractive TV channels for the young target group Positioning age & gender: Full day, Ø 2014, top channels Germany [in %; size of bubbles = Ø share % adults 14-49] Male 100 75 Old 50 Young 25 0 0 10 20 30 40 50 60 70 80 90 100
Slide 60: Strong TV viewing despite high YouTube penetration
1 2 3 4 5 National print cannibalization Strong TV viewing despite high YouTube penetration Ø viewing time 2015 [indexed] 100 73 69% Watch YT at least once a 65x month1) 1.5 2.2 TV has by far the highest daily usage 14+ 14-49 1) A14-49; Source: SevenOne Media, Forsa 2015 | October 15, 2015 | Basis:
Slide 61: YouTube with much lower reach and ad effectiveness
1 2 3 4 5 National print cannibalization YouTube with much lower reach and ad effectiveness Ø Daily YouTube reach by time category1) Ad comparison: Aided ad awareness Adults 14+ For reach in Index [in %] TV ads are…2) TV a viewer 50 only counts with more 500 +132 % than 1 min of more 40 viewing time
Slide 62: YouTube usage heavily concentrated
1 2 3 4 5 National print cannibalization YouTube usage heavily concentrated … Share of YouTube users per usage [in %] Low YouTube usage of 100 broad majority, 33 preferred target group 75 for advertiser 86.5 33 50 25 33 2/3 of YouTube usage is 9.6 0 3.9 generated by only 13.5% YouTube YouTube of hea
Slide 63: Heavy users can be reached by TV
1 2 3 4 5 National print cannibalization … by users which can be reached by TV YouTube heavy users watch more TV than average: [index usage per day1)] 120 111 100 100 80 60 40 20 0 YT heavy user Average TV user 1) Average person, 14-49 yrs., Q1 2015 | Page 63 | October 15, 2015 | Source: SevenOne Me
Slide 64: Social daily usage stagnating, higher fragmentation
1 2 3 4 5 National print cannibalization Social daily usage stagnating, but higher fragmentation Time spent on social networks Top growth performers 2014: social platforms Very [global daily average use, in hrs] fragmented 1.72 97 95 1.67 1.69 market with 1.61 new platforms growing fastest 54 47 35
Slide 65: Millennials' media usage shifts to TV after career start
1 2 3 4 5 National print cannibalization Millennials’ media usage strongly shifts to TV after career start Millennials (aged 14-34): Ø daily TV, online & online video usage [in min] 150 148 139 TV +33% -25% 112 99 100 -4% +38% Online 81 103 58 50 -28% 42 -45% 23 Online video 0 Pupils Students/appren
Slide 66: Two big new opportunities
1 2 3 4 5 Regional TV advertising Two big new opportunities Approach Future Target segments HbbTV 1.0 HbbTV 2.0 Platforms • New geographic target groups Overlay products Spot replacement Spot Regional replacement & product bundles • Premium pricing for… … targeted audience Individualized groups Targ
Slide 67: Additional EUR 1.7bn regional spendings addressable by TV
1 2 3 4 5 Regional TV advertising Additional EUR 1.7bn regional spendings addressable by TV German print, radio and out-of-home gross advertising market 2014 [in EUR bn] 11.2 EUR 600m from radio and outdoor Outdoor 1.3 3.3 ad market Radio 1.6 adressable on top of regional print ad potential of Magaz
Slide 68: Several levers to address regional potential
1 2 3 4 5 Regional TV advertising Several levers to address regional potential (Short-term) (Long-term) (Potential Existing solution: cable spot overlay ban 2016) National spots with regional discount SAT.1 regional windows HbbTV 1.0 non-spot products HbbTV 2.0 spot overlay IPTV
Slide 69: First cases of regional TV advertising realized
1 2 3 4 5 Regional TV advertising First cases of regional TV advertising realized, but ban impending for 2016 Client build-up 2015 Approved by Federal Administrative Court Political ban in the broadcasting law impending for 2016 15 14 12 High market demand for 10 regional TV ads 8 6 First successful
Slide 70: Innovation leader in addressable TV
1 2 3 4 5 Regional TV advertising We are innovation leader in addressable TV Spot overlay SwitchIn | October 15, 2015 | | Page 70
Slide 71: Fast growing HbbTV will allow regionalization
1 2 3 4 5 Regional TV advertising Fast growing HbbTV will allow regionalization Existing products, HbbTV 1.0 HbbTV penetration Digital overlays on TV signals Number of connected TV sets in Germany1) [in m] • Red Button TV Spot with regional 29.8 30 28.4 overlay & microsite Connected TV incl. Hbb TV
Slide 72: First regional overlay via HbbTV geo-targeting
1 2 3 4 5 Regional TV advertising First regional overlay on national spot via HbbTV geo-targeting Successful pilot case Microsite with videos and store locator Product launch completed Automatic display of all stores nearby Store websites linked via QR Codes In Q4 2015 client on top bookings of full
Slide 73: Addressable TV will develop more accurate targeting
1 2 3 4 5 Individual TV advertising Addressable TV will develop more accurate targeting Targeting approach IP address linked to … … directly available data • Regional data Established products Regional … demographic data • Purchase power (income) • Size of household Planned Audience • … targeting …
Slide 74: Linking TV and Digital for superior targeting
1 2 3 4 5 Individual TV advertising Linking TV and Digital to develop superior targeting products Digital User-specific data across all P7S1 digital assets in a unified data pool IP address 42m 32m Buying intent Topic affinities TV household Unique Data Management Platform reach Users in D-A-CH | Oc
Slide 75: New segments and budget types to support TV growth
1 2 3 4 5 New markets New segments and budget types to support TV growth Betting and lottery market potential Other new customer segment budgets [in EUR m] Sales Win promotion budgets for TV Charity 82 Discover mass reach effect 60 Recruiting/HR +105% Support recruitment campaigns 40 Healthcare New
Slide 76: Individualized TV targeting offers opportunities
1 2 3 4 5 National print cannibalization Individualized TV targeting offers opportunities New Better cannibalize print advertising segments addressable Better products vs. digital through attractive individualized TV targeting New niche customers for TV | October 15, 2015 | | Page 76
Slide 77: Agenda
Agenda 1 2 3 Key Continued TV P7S1 leading achievements market growth the market story | October 15, 2015 | | Page 77
Slide 78: Capitalizing audience share gains from new channels
We increasingly capitalize our audience share gains from new channels Relative share of TV ratings Net share of TV advertising vs. relative share of TV advertising [in %] [in %] 56 55% Share of TV ratings (P7S11) vs. RTL2)) 52% 52 Share of TV advertising (P7S11) vs. RTL2)) 48 2010 2011 2012 2013 201
Slide 79: Focus on innovation & digital extension
Focus on innovation & digital extension Innovative ad concepts Unique digital TV extension portfolio 360° conception TV brand extension with TVSMILES Sales concepts according to market needs Extends TV campaigns directly to mobile Digital conception TV retail extension Customized concepts for TV & o
Slide 80: Whole range of content marketing
P7S1 offering the whole range of content marketing – opportunities in a large growth segment Advertiser Agency Production Distribution base services DIGITAL Content Address market Deliver powerful Leverage existing Add reach through Marketing demand for end-to- ideas and creativity content portfolio
Slide 81: Content across all touchpoints of customer journey
Offering content across all touchpoints of the customer journey Teasing spots on Program +55% Weekly TV stories major channel sponsorings Ø200k Channel on sixx/ ProSieben market ProSiebenMAXX Viewers share1) Reach per episode Transaction URBAN Engagement >1,000 Leads on FIAT STORIES TV/Digital 1.3m
Slide 82: We already cover all future advertiser needs
We already cover all future advertiser needs Reach Emotional branding Social interaction Commercial interaction | October 15, 2015 | | Page 82
Slide 83: Launch of Marktguru: A new commerce connector
Launch of Marktguru: A new commerce connector Interactive brochure Sales basket POS visit Theme worlds Nearest POS Online shop TV reach boost Product search Attention Impulse Interaction with offers Transaction | October 15, 2015 | | Page 83
Slide 84: MINI Cooper: First German Instagram-based TV spot
MINI Cooper: First German Instagram-based TV spot Post it on Take a picture Instagram at Show on TV #miniblockbuster | October 15, 2015 | | Page 84
Slide 85: Summary
Summary TV with strongest and proven ROI due to highest and fastest reach 1 2 TV will further win budgets from print – digital is fragmented 3 The US TV market is different and not focused on youngsters YouTube and Facebook are not adding significant incremental 4 reach to TV We will further grow TV
Slide 86: Distribution
October 15, 2015 Growing to the next level Capital Markets Day 2015 Conrad Albert Distribution | October 15, 2015 | | Page 86
Slide 87: Executive summary
Executive summary Performance Outlook • Growth continuity for • Revenue growth of Strong growth revenues (+29%1)) and rec. Target +EUR 100m to EUR maintained EBITDA contribution confirmation 155m in 2018 • HD subscriptions +19%1) • HD subscriptions 2018: 9.2m • Analog melt-down by 2018 Unique • Bund
Slide 88: Distribution delivers strong growth and confirms CMD target 2018
Distribution delivers strong growth and confirms CMD target 2018 External revenues [in EUR m] • Double-digit revenue growth over 155 the years will be maintained 50 • HD growth will continue – UHD 105 screen push in 2016, DVB-T2 HD- only launch in 2017, analog melt- 50 down 2016/17 55 • Additional p
Slide 89: Distribution in Germany dominated by large players
Distribution in Germany – historically dominated by large players Satellite Cable operators Playout Uplink (Unterföhring) 19.2° East 2015 HH: 18.2m 2015 HH: 16.9 m (5.6m HH analog) Cable networks IPTV Terrestrial Mobile Terrestrial (DVB-T) IPTV networks Satellite (direct-to-home) • Quasi-monopolisti
Slide 90: New platforms create opportunities beyond incumbents
New platforms create opportunities beyond incumbents Platforms since 2014 (mobile, apps) Platforms so far complementary, Broadcaster no cord-cutting Improved negotiation leverage Aggregators for P7S1 Telcos Potential for additional revenues MobileTV and/or reduction of distribution costs | October 1
Slide 91: Free-TV distribution via cable and satellite remains dominant
Free-TV distribution via cable and satellite remains dominant Substitution restrictions of OTT/mobile TV Mid-term development High speed broadband access1) Mobile tariffs without data limitations – i.e. metropolitan areas >90%, rural areas ~50% for TV – e.g. Deutsche Telekom first mover Mobile tarif
Slide 92: Growth upside from technical evolution and regulatory relief
Growth upside from technical evolution and regulatory relief Encryption of SD signal 2022 onwards possible, Technological development creates added value with new bundle and monetization options for the consumer and generates monetization opportunities Analog melt-down of remaining approximately 5.6
Slide 93: Our key strategic initiatives
Our key strategic initiatives HD subscriptions – drive further growth 1 Encryption – first time encrypted terrestrial distribution in HD with DVB-T2 2 Mobile distribution – new deals for offering full distribution to our audience 3 Bundling – negotiate bundling deals with our platform partners 4 Dig
Slide 94: HD subscriptions
1 2 3 4 5 HD subscriptions Increasing number of households subscribe to HD technology HD FTA subscribers HD growth levers [in m] 9.2 1 Platforms will grow HD through hard bundling and upselling 3.5 Analog melt down/digital HH 4.8 5.3 5.7 2 increase ~1m potential HD households 4.2 3.7 Continued techn
Slide 95: HD growth measures support positive development
1 2 3 4 5 HD subscriptions HD growth measures support positive development Consumer (re-)purchasing Product Sales power stimulus • Mobile/OTT HD product • Preis24.de bundle HDSL1) • P7S1 TV spot development • Mydays HD+/UHD integration • Industry-wide TV spot (VPRT2)) • Bundle product, e.g. with max
Slide 96: DVB-T2 – HD only platform launches in 2017
1 2 3 4 5 Encryption DVB-T2 – “HD only” platform launches in 2017 Milestone deal, converting terrestrial distribution into first time monetization for broadcasters Launch “HD only” product, with technical 2017 access fee bundled into DVB-T2 product All P7S1 HD channels on air with launch | October 1
Slide 97: Growing mobile reach for linear channels
1 2 3 4 5 Mobile distribution Growing mobile reach for linear channels Independent mobile TV aggregators Incumbents’ mobile streaming products >2.5m Mobile TV app2) for Telekom’s 36m Germany's strongest EPG addressable addressable brand launched live stream user base1) MobileTV mobile customers, no
Slide 98: Exclusive hard bundling deals for maxdome
1 2 3 4 5 Bundling Exclusive hard bundling deals for maxdome Launch March >20%1) 2015 of all German • First SVoD hard bundling deal: maxdome as TV HH fixed component of Unitymedia’s tariffs addressable • Available for Horizon, Horizon Go and all connected Unitymedia households Launch 2016 • SVoD har
Slide 99: Strong coverage of leading digital entertainment platforms
1 2 3 4 5 Digital distribution Strong coverage of leading digital entertainment platforms 1st 1st page1) page >40% 1st 1st market page3) page3) share2) before Q3/2016 1st before page Q3/2016 Anywhere, anyplace, any device distribution for full consumer reach 1) Android TV app store available on Smar
Slide 100: Outlook
Outlook CMD target confirmation of EUR 155m revenues in 2018 HD subscriptions growth continues with targeted 9.2m households in 2018 Further growth opportunities, e.g. from UHD, SD encryption possibility 2022 onwards | October 15, 2015 | | Page 100