ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q1 2019 Earnings Presentation
32 slides from ProSiebenSat.1 Media's earnings presentation, May 9, 2019
Slide 1: Q1 2019 Results Presentation
ProSiebenSat.1 @E MediaSE MAY 9, 2019 Q1 2019 RESULTS PRESENTATION
Slide 2: Q1 2019 Update and Financial Update
Q1 2019 UPDATE MAX CONZE - GROUP CEO FINANCIAL UPDATE RALF GIERIG - DEPUTY GROUP CFO ProSiebenSat.1 MediaSE
Slide 3: Q1 2019 Update - Max Conze, Group CEO
ProSiebenSat.1 @E MediaSE MAY 9, 2019 Q1 2019 UPDATE ae, MAX CONZE - GROUP CEO
Slide 4: We are making progress in executing our strategy
GROUP WE ARE MAKING PROGRESS IN EXECUTING OUR STRATEGY Al ¢ Group revenue growth of +4% — +38% growth of Red Arrow Studios (organic growth: +31%) — +25% growth of NuCom Group (organic growth: +14%) — +14% growth of digital & smart advertising revenues «We are winning with consumers and audiences — B
Slide 5: Key financials Q1 2019
GROUP KEY FINANCIALS Q1 2019 Al ORGANIC REPORTED GROUP REVENUES +3% +4% ENTERTAINMENT REVENUES -4% -7% TV core advertising -4% Digital & smart advertising +14% RED ARROW STUDIOS REVENUES +31% +38% COMMERCE/NUCOM GROUP REVENUES 414% +25% GROUP ADJ. EBITDA -5% ProSiebenSat.1 Media SE Note: Figures rel
Slide 6: Winning with consumers in challenging market
ENTERTAINMENT WINNING WITH CONSUMERS IN CHALLENGING MARKET PNUIEONMENTAI * Total video viewtime almost flat vs. prior year, reflecting +26% growth of digital platforms and TV audience share gains, thus almost offsetting -5% decline in daily linear TV consumption ¢ Austria as our Entertainment test m
Slide 7: Successful local content push with new local formats
ENTERTAINMENT SUCCESSFUL LOCAL CONTENT PUSH WITH 43 NEW LOCAL FORMATS Al FACTUAL SHOW/REALITY COMEDY FICTION SPORTS ‘taff’ with +26% audience share vs. Q1 2018” ProSiebenSat.1 Media SE 'The Voice Kids’ with "Late Night Berlin’ | Thriller film series with] ‘Catch!’ with up to +42% a 9.4m 10.4% (0) di
Slide 8: Studio71 no. 1 TV-related content owner on YouTube
ENTERTAINMENT STUDIO71 NO. 1 TV-RELATED CONTENT OWNER ON YOUTUBE Al TV-RELATED CONTENT CREATORS rman Tube ion)” New signing: cooking channel Record views for 'Sallys Welt’ 'The Voice Kids’ New signing: YouTube star Jonas Wuttke + a v New TV formats:'Das groBe _ Influencer Eko Fresh promoting Re-laun
Slide 9: Entertainment ad revenues mirror weaker German macroeconomic environment
ENTERTAINMENT P7S1 ENTERTAINMENT AD REVENUES MIRROR WEAKER GERMAN Al MACROECONOMIC ENVIRONMENT CURRENT MACRO ENVIRONMENT HOW TO LEVERAGE FURTHER & P7S1 ENTERTAINMENT AD REVENUES MONETIZATION POTENTIAL % Ill Fo Business Climate Germany + Attract new TV direct clients (share increase from i Markit Com
Slide 10: Launch of Germany's biggest freemium streaming platform
ENTERTAINMENT LAUNCH OF GERMANY’S BIGGEST FREEMIUM STREAMING PLATFORM Al J U #joynthejourney Roadmap @ CD BETA LAUNCH PREMIUM May June LAUNCH Winter * Live TV and AdVoD * Full AdVoD launch * Launch of additional + Open to selected test + Content extension subscription model group with originals for
Slide 11: Our USP: best and largest free digital offering
ENTERTAINMENT OUR USP: BEST & LARGEST FREE DIGITAL OFFERING OF ALL ENTERTAINMENT IN GERMANY CONTENT 7 DAYS PRE-TV AIRING 30 DAYS CATCH-UP 40 TV PREVIEWS 5 EXCLUSIVES / ORIGINALS ~20,000 EPISODES ProSiebenSat.1 Media SE CHANNELS >50 LIVE CHANNELS AT LAUNCH »~=UROSPORT al MARKETING MASSIVE 3 MONTHS LA
Slide 12: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 13: Very strong start into 2019 with +38% revenue growth
RED ARROW STUDIOS VERY STRONG START INTO 2019 WITH +38% REVENUE GROWTH Al * Best Q1 revenue growth for content production since Q1 2016 mainly due to high-profile shows — 'The Weekly’: New York Time's first major foray into TV, produced for FX and hulu — ‘Vienna Blood’: Landmark crime drama series f
Slide 14: Top productions and renewals - strong pipeline for FY 2019
RED ARROW STUDIOS TOP PRODUCTIONS & RENEWALS - STRONG PIPELINE FOR FY 2019 Al Q1 2019 PIPELINE FOR 2019 MAFS USA (Season 8) THE TOE BRO (new) BOSCH (Seasons 5) The Weekly (new) Vienna Blood (new) Smiley Face Killers Say Yes to the Nest First Responders Live Jailbirds (new) Interrogation (new) (new)
Slide 15: Studio71 is the world's largest distributor and producer of short form content
RED ARROW STUDIOS STUDIO71 IS THE WORLD'S LARGEST DISTRIBUTOR AND PRODUCER Al OF SHORT FORM CONTENT 39 YouTube 10bn views per month 15k social videos produced | every month... im | ProSiebenSat.1 Media SE 15 >450m followers
Slide 16: Delivering on upper end of guidance with +14% organic growth
NUCOM GROUP DELIVERING ON UPPER END OF GUIDANCE WITH +14% ORGANIC AND Al +25% REPORTED REVENUE GROWTH EXPERIENCE & CONSUMER ADVICE MATCHMAKING GIFT VOUCHERS BEAUTY & LIFESTYLE + 422% - +60% - +16% external revenues external revenues external revenues * Strong energy switching * eharmony: Parship sty
Slide 17: Good progress on our transformation agenda
GROUP GOOD PROGRESS ON OUR TRANSFORMATION AGENDA Al 1. Top team completed with strong mix of P7S1 experience and fresh perspective; critical capability gaps filled from tech to HR 2. Changing culture to be much faster and nimbler with a clear execution drum beat Structuring a future fit P7S1 Enterta
Slide 18: ProSiebenSat.1 valuation / share price
GROUP PROSIEBENSAT.1 VALUATION / SHARE PRICE EV/EBITDA 2019E Revenue growth 2019E 18 9% 16 8% 14 7% 12 6% ale) 5% 8 4% 6 3% 4 2% 9 2 tas negative 0 0% . SAX So .S & RECN SS we SQ Sg A ad @ & or os & m e & — & Ss « See — ES oS < SF o8 CE Ss cs LOS FFP Far SF WS SF SP Ca & & SS e SESS SS of es Se ee w
Slide 19: Financial Update - Ralf Gierig, Deputy Group CFO
ProSiebenSat.1 @E MediaSE MAY 9, 2019 FINANCIAL UPDATE RALF GIERIG - DEPUTY GROUP CFO
Slide 20: Group P&L and balance sheet items
FINANCIALS Group P&L and balance sheet items [in EUR m] Q1 2019 Ext. revenues 913 Adj. EBITDA 190 Adj. net income 94 Net financial debt 2,206 Financial leverage 2.2x MediaSE Leverage ratio: Net financial debt/LTM adjusted EBITDA; LTM adjusted EBITDA amounts to EUR 1,002m (previous year: EUR 063m) No
Slide 21: Financials: Entertainment
FINANCIALS -4% portfolio/ currency adj. revenue growth in Q1 2019 External revenues and adjusted EBITDA [in EUR m] Q1 2019 Q1 2018 YoY Ext. revenues 579 624 -7T% Advertising 507 526 “4% TV core advertising 478 500 “4% revenue growth subscriber development Digital & smart advertising 30 26 +14% g con
Slide 22: Operational KPIs Entertainment
FINANCIALS OPERATIONAL KPIS ENTERTAINMENT ADVERTISING SHARE AUDIENCE/ TV AD VIEWING TIME MARKET SHARE OTHER TV core advertising revenue share» 94% vs. 95% in QI 2018 Total video viewtime” om | Audience share?) 9 min 27.9% vs. 282bn min in Qi 2018 vs. 26.8% in Q1 2018 | HD subscribers® 9.7m vs. 8.9m
Slide 23: Financials: Content Production & Global Sales
FINANCIALS +31% portfolio/ currency adj. revenue growth in Q12019 External revenues and adjusted EBITDA [in EUR m] Q1 2019 Q1 2018 YoY Ext. revenues 135 97 +38% Production 64 45 +41% Global Sales 22 21 +6% ng mid double-digit owth in Q1 2019 and further A eration compared to already 71 4 1 +56% Stud
Slide 24: Operational KPIs Content Production & Global Sales
FINANCIALS OPERATIONAL KPIS CONTENT PRODUCTION & GLOBAL SALES Al # of hours productions” produced” | Titles in catalogue | Returning shows” 61 vs. 63 in Q12018 Monthly # of YouTube | Monthly minutes watched?) video views?) subscribers?) 1.4bn 43bn vs. 1.1bn in Q1 2018 vs. 32bn in Q1 2018 10.0bn vs.
Slide 25: Financials: Commerce
FINANCIALS External revenues and adjusted EBITDA [in EUR m] Q1 2019 Ext. revenues 199 Consumer Advice 9) Matchmaking 53 Experience & Gift Vouchers 15 Beauty & Lifestyle 7 Other 1 Adj. EBITDA 19 MediaSE +14% portfolio/ currency adj. revenue growth in Q1 2019 e areovria with positive butions from all
Slide 26: Operational and financial KPIs Commerce
FINANCIALS OPERATIONAL AND FINANCIAL KPIS COMMERCE Al CONSUMER EXPERIENCE & BEAUTY & ADVICE MATCHMAKING?) GIFT VOUCHERS LIFESTYLE | # of transactions” | # of registrations # of orders | # of transactions® 0.7m vs. 0.5m in Q1 2018 Ext. revenues in EUR Ext. revenues in EUR Ext. revenues in EUR ProSieb
Slide 27: FY 2019 targets
FINANCIALS FY 2019 TARGETS FY 2019 OUTLOOK COMMENTS GROUP REVENUES mid single-digit increase (%) Group revenue growth to be mainly driven by non-advertising business ENTERTAINMENT RED ARROW STUDIOS” NUCOM GROUP? about in line with mid-term revenue growth targets About flat development, provided TV a
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Slide 29: Appendix
Q1 2019 APPENDIX
Slide 30: Group P&L
GROUP P&L [in EUR m] Q1 2019 Q1 2018 YoY Revenues 913 881 +4% Adjusted EBITDA 190 200 -5% Reconciling items 10 -68 2 EBITDA 180 133 +36% Depreciation, amortization and 51 51 0% impairments Thereof PPA 12 12 +5% Operating result (EBIT) 129 81 +58% Financial result 49 35 ~ Thereof interest result 10 2
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Slide 32: ProSiebenSat.1 disclaimer
ProSiebenSat1 This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and _ projections regarding ProSiebenSat.l's or ProSiebenSat.1 Group's financial position, business strategy, plans and ob