Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — FY 2020 Earnings Presentation
36 slides from Prosiebensat.1 Media's earnings presentation, Mar 4, 2021
Slide 1: Full year 2020 results presentation
Full year 2020 results presentation March 4, 2021
Slide 2: Agenda
AGENDA 1. Review Full Year 2020 2. Financial Overview 3. Strategy Update 4. Outlook 2
Slide 3: FY 2020 with successful business development despite strong COVID-19 impact
FY 2020 WITH SUCCESSFUL BUSINESS DEVELOPMENT DESPITE STRONG COVID-19 IMPACT After strong start in Q1, results were heavily impacted by COVID-19 as of mid March, recovery started in Q3, followed by a strong Q4 2020 New Executive Board established end of March, leading to the re-definition of the Grou
Slide 4: Focus on local & live entertainment and infotainment paid off
FOCUS ON LOCAL & LIVE ENTERTAINMENT AND INFOTAINMENT PAID OFF GROWTH ACROSS KEY KPIS +2.0% +0.5% pts +29.0% +6.2% Ø daily net P7 & S1 JOYN AGOF HD FTA viewers Prime Time Unique Users subscribers FY 2020 vs. PY1) FY 2020 vs. PY2) Q4 2020 vs. PY3) FY 2020 vs. PY4) MAIN ACHIEVEMENTS • Strong performanc
Slide 5: Sustained content investments accelerated recovery of Entertainment segment in H2
SUSTAINED CONTENT INVESTMENTS ACCELERATED RECOVERY OF ENTERTAINMENT SEGMENT IN H2 ENTERTAINMENT ADVERTISING REVENUES 2020 VS. PY +10% +0.8% 3% Total Video 0% Viewtime FY 2020 -4% vs. PY1) -10% -6% -20% in %, Entertainment advertising -30% revenues 2020 vs. PY -40% -37% Q1 Q2 Q3 Q4 • Viewing time sta
Slide 6: Successfully formed ParshipMeet Group through acquisition of The Meet Group in 2020
SUCCESSFULLY FORMED PARSHIPMEET GROUP THROUGH ACQUISITION OF THE MEET GROUP IN 2020 REVENUES [in EUR m] ADJ. EBITDA [in EUR m] 10/2018: eharmony 09/2020: The Meet Group 522 +59% YOY 333 YOY +81% 209 116 123 143 80 37 40 44 2017 2018 2019 2020 2020 2017 2018 2019 2020 2020 pro-forma pro-forma FOCUS A
Slide 7: WindStar Medical sold at an enterprise value of EUR 280m
WINDSTAR MEDICAL SOLD AT AN ENTERPRISE VALUE OF EUR 280M WINDSTAR MEDICAL DEVELOPMENT 10/2016 FY 2016 01/2018 10/2020 LTM 11/2020 Acquisition of EUR 70m pro- Acquisition of Acquisition by EUR 123m WindStar forma external OTC brand Oakley Capital external Medical (EV of revenues, adj. Zirkulin for (E
Slide 8: Flaconi: strong revenue growth of +48% YoY in 2020
FLACONI: STRONG REVENUE GROWTH OF +48% YOY IN 2020 AND >8X SINCE MAJORITY TAKEOVER IN 2015 FLACONI REVENUES [in EUR m] YOY +48% 12/2012: P7S1 Minority 03/2015: P7S1 Majority 292 07/2016: Exit Founder 197 YOY +45% 133 132 96 91 61 33 12 2014 2015 2016 2017 2018 2019 2020 Q4 2019 Q4 2020 KEY SUCCESS D
Slide 9: Agenda
AGENDA 1. Review Full Year 2020 2. Financial Overview 3. Strategy Update 4. Outlook 9
Slide 10: Group revenues almost on prior year's level despite COVID-19 impact
DUE TO A STRONG Q4, 2020 GROUP REVENUES ALMOST ON PRIOR YEAR'S LEVEL DESPITE IMPACT OF COVID-19 EXTERNAL REVENUES: GROUP & SEGMENTS [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • Due to strong recovery across all segments in Q4 2020, Group revenues again passed EUR 4bn and also exceed
Slide 11: Group adj. EBITDA reflects ad revenue decline in FY 2020
GROUP ADJ. EBITDA REFLECTS AD REVENUE DECLINE IN FY 2020 – STRONG RECOVERY WITH +12% IN Q4 2020 ADJUSTED EBITDA: GROUP & SEGMENTS [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • Reduction of Group adjusted EBITDA by - EUR 166m in FY 2020 mainly resulting from -EUR 190m decline in Q2 20
Slide 12: FY 2020 adjusted net income and FCF reduction in line with adjusted EBITDA
FY 2020 ADJUSTED NET INCOME AND FCF REDUCTION LARGELY IN LINE WITH ADJUSTED EBITDA EBIT, NET INCOME, ADJUSTED NET INCOME, FCF BEFORE M&A [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • Almost stable EBIT development in FY 2020 due to EUR 140m capital gain from disposal of WindStar Medi
Slide 13: Net debt reduced to EUR 1.97bn in FY 2020
NET DEBT REDUCED TO EUR 1.97BN IN FY 2020 – INCREASE OF FINANCIAL LEVERAGE PRIMARILY DUE TO COVID-19 RELATED DECLINE IN ADJUSTED EBITDA NET FINANCIAL DEBT [in EUR m] Debt profile [in EUR m] 12/20 12/19 Maturity Senior Notes 600 600 Jan-21 2.245 Term Loan 151 151 Apr-23 1.968 RCF (74m of 750m) Apr-23
Slide 14: Agenda
AGENDA 1. Review Full Year 2020 2. Financial Overview 3. Strategy Update 4. Outlook 14
Slide 15: P7S1 to re-segment current Group structure as of January 1, 2021
P7S1 TO RE-SEGMENT CURRENT GROUP STRUCTURE AS OF JANUARY 1, 2O21 TO LEVERAGE ITS FULL SYNERGY POTENTIAL STATUS QUO Segmentation until December 31, 2020 • Business models included in Seven.One Entertainment Group which are not closely Entertainment related • Red Arrow Studios with insufficient SevenV
Slide 16: The new Group structure highlights the synergy potentials
THE NEW GROUP STRUCTURE HIGHLIGHTS THE SYNERGY POTENTIALS WITHIN ENTERTAINMENT AND OF THE DIFFERENT SEGMENTS GROUP We strive to systematically and synergistically connect entertainment, dating and digital consumer brand businesses to create long-term value DATING ENTERTAINMENT COMMERCE & VENTURES DA
Slide 17: Entertainment segment with continued focus on advertising and distribution
ENTERTAINMENT SEGMENT WITH CONTINUED FOCUS ON ADVERTISING AND DISTRIBUTION STRATEGY • Focus on the core markets of Germany, Austria and Switzerland • Leverage and push local & live entertainment and infotainment (ongoing shift from US content to local content) • Focus on Advertising and Distribution
Slide 18: Further expansion of TV and digital reach with innovative ad products
WE AIM FOR A FURTHER EXPANSION OF OUR TV AND DIGITAL REACH WITH INNOVATIVE AD PRODUCTS TV D DIGITAL REACH TV channels with ~Ø 60m monthly TV channel websites and interactive TV viewers (Ø 80% of total monthly TV channel apps: 6.84m Unique Users | market)1); Ø 220 minutes daily TV Freemium streaming
Slide 19: Dating segment with strong focus on realizing long-term growth potential
DATING SEGMENT WITH STRONG FOCUS ON REALIZING LONG-TERM GROWTH POTENTIAL STRATEGY • Seamless integration into a global champion • Drive internationalization through growing presence in North America and further opportunities in European markets, with high cross-selling potential • Leveraging of full
Slide 20: ParshipMeet Group with a portfolio from social dating to matchmaking
PARSHIPMEET GROUP WITH A PORTFOLIO FROM SOCIAL DATING & ENTERTAINMENT TO MATCHMAKING GEOGRAPHIC FOOTPRINT1) US 52% of revenues Germany 25% of revenues Rest of World 23% of revenues PORTFOLIO COMPANIES MeetMe Tagged Growlr Skout Lovoo Parship eharmony ElitePartner The mobile Social The gay Discover L
Slide 21: Commerce & Ventures to concentrate on building up synergetic assets
COMMERCE & VENTURES TO CONCENTRATE ON UNIQUE APPROACH OF BUILDING UP SYNERGETIC ASSETS STRATEGY Concentration on investments in digital, consumer-oriented companies as long as they have strong synergies with the Entertainment business SevenVentures & Accelerator: NuCom Group/ Seven Growth: • Seed an
Slide 22: Current portfolio includes companies in all life stages
CURRENT PORTFOLIO INCLUDES COMPANIES IN ALL LIFE STAGES NUCOM GROUP/SEVEN GROWTH CONSUMER ADVICE BEAUTY & LIFESTYLE EXPERIENCES NuCom Group (≥50 - 100% of portfolio assets) Seven Growth (>75%) SELECTION OF SEVENVENTURES/ACCELERATOR TRANSACTIONS SevenVentures (below 20%) Accelerator (below 20%) Note:
Slide 23: Agenda
AGENDA 1. Review Full Year 2020 2. Financial Overview 3. Strategy Update 4. Outlook 23
Slide 24: Financial targets assume no further COVID-19-related lockdown until end of March
FINANCIAL TARGETS ASSUME NO FURTHER COVID-19-RELATED LOCKDOWN UNTIL THE END OF MARCH AND NORMALIZATION OF ECONOMIC ENVIRONMENT THEREAFTER Target Comment • Target takes DACH advertising revenue development in the range of -2% to +4% in 2021 into account Group revenues EUR 4,150 – 4,350m • Previous-ye
Slide 25: 2020 dividend proposal based on our general dividend policy
2020 DIVIDEND PROPOSAL BASED ON OUR GENERAL DIVIDEND POLICY Dividend yield: FY 2020 Group net income1) EUR 267m Group adjusted net income2) EUR 221m Pay-out ratio3) vs. 2020 adjusted net income 50% Total dividend pay-out (in 2021)3) EUR 111m Number of total P7S1 shares outstanding 233,000,000 (as of
Slide 26: P7S1 emerges strong from the crisis with a clear path to profitable growth
P7S1 EMERGES STRONG FROM THE CRISIS AND WITH A CLEAR PATH TO PROFITABLE GROWTH The Group remains robust in the face of the COVID-19 crisis, with the expectation of similar dynamics in the advertising market in 2021 and thus similar recovery scenarios for the Group in 2020 We will continue to follow
Slide 27: Appendix
ProSiebenSat
Slide 28: 2020 Group revenues almost on prior year's level
2020 GROUP REVENUES ALMOST ON PRIOR YEAR'S LEVEL – ADJ. NET INCOME DEVELOPMENT MAINLY REFLECTING DECLINE IN ADJ. EBITDA DUE TO COVID-19 IMPACT [in EUR m] Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY Revenues 1,492 1,349 +11% 4,047 4,135 -2% Adjusted EBITDA 377 338 +12% 706 872 -19% Reconciling items 84 -
Slide 29: Seven.One Entertainment Group with strong finish at year-end 2020
SEVEN.ONE ENTERTAINMENT GROUP WITH STRONG FINISH AT YEAR-END 2020 EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • FY 2020 results of the Seven.One Entertainment Group were impacted by the development of the COVID-19 External Revenues 826 813 +2% 2,
Slide 30: ParshipMeet Group with improved margin profile in FY 2020
PARSHIPMEET GROUP WITH IMPROVED MARGIN PROFILE IN FY 2020 EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • Strong organic revenue growth in FY 2020 driven by expansion of Matchmaking business (Parship, Elitepartner, eharmony). External Revenues 132
Slide 31: COVID-19 pandemic had a mixed impact on NuCom Group's businesses
COVID-19 PANDEMIC HAD A MIXED IMPACT ON NUCOM GROUP'S BUSINESSES EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • Overall solid revenue performance of the NuCom Group in a year dominated by the COVID-19 pandemic External Revenues 315 293 +8% 807 756
Slide 32: COVID-19 restrictions in production business affected Red Arrow Studios
COVID-19-RELATED RESTRICTIONS IN THE PRODUCTION BUSINESS HAVE AFFECTED RED ARROW STUDIOS EXTERNAL REVENUES AND ADJUSTED EBITDA [in EUR m] Comments Q4 2020 Q4 2019 YoY FY 2020 FY 2019 YoY • Overall solid development of Red Arrow Studios given demanding environment, particularly in the content product
Slide 33: TV consumption increased by +7% in Q4 2020
TV CONSUMPTION INCREASED BY +7% IN Q4 2020 Seven.One Q4 Q4 ParshipMeet Q4 Q4 NuCom Q4 Q4 Red Arrow Q4 Q4 YoY YoY YoY YoY ENT Group 2020 2019 Group 2020 2019 Group 2020 2019 Studios 2020 2019 Matchmaking Consumer RAS Total video 279bn 283bn -1.2% # of 1.4m 1.4m +1% Advice # of 1.1m 1.4m -16% # of 146
Slide 34: Total video viewtime above prior year's level
TOTAL VIDEO VIEWTIME ABOVE PRIOR YEAR‘S LEVEL Seven.One FY FY ParshipMeet FY FY NuCom FY FY Red Arrow FY FY YoY YoY YoY YoY ENT Group 2020 2019 Group 2020 2019 Group 2020 2019 Studios 2020 2019 Matchmaking Consumer RAS Total video 1,084bn 1,076bn +0.8% # of 5.8m 5.3m +9% Advice # of 4.1m 4.8m -14% #
Slide 35: 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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Prosieben Sat 1 Media — FY 2020 Earnings Presentation on 6ix