ProSiebenSat.1 Media SE · XETR:PSM

ProSiebenSat.1 Media — Investor Presentation (April 2005)

40 slides from ProSiebenSat.1 Media's investor presentation, Apr 1, 2005

  1. Slide 1: Company Presentation

    Company Presentation Investor Relations Unterfoehring April 1, 2005

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains “forward looking statements” and information which has been obtained from sources believed by ProSiebenSat.1 Media AG (“ProSiebenSat.1”) to be reliable. All statements (including but not limited to opinions, estimates and projections) other than statements of hi

  3. Slide 3: Agenda

    Agenda Introduction Company and business overview Preliminary 2004 Financials (IFRS) Outlook 3

  4. Slide 4: Television is the core competence of ProSiebenSat.1 Group

    Television is the core competence of ProSiebenSat.1 Group ProSiebenSat.1 operates four wholly owned advertising financed TV stations and is diversifying its revenue streams through TV related activities in its diversification business area. ProSiebenSat.1 Media AG Television Diversification Sat.1 Se

  5. Slide 5: Television: ProSiebenSat.1 Group operates a unique TV family of stations

    Television: ProSiebenSat.1 Group operates a unique TV family of stations Complementary strategic positioning of the stations within the commercially decisive target audience group of 14 – 49 years. Sat.1 ProSieben Broad mass-market brand as Lead brand as station for young classic network entertainme

  6. Slide 6: Diversification: Licensing, Merchandising and B2C business

    Diversification: Licensing, Merchandising and B2C business SevenOne Intermedia and MM Merchandising form the current core entities within the diversification business area. Online, teletext, mobile, licensing and music are the current main activities. Our existing activities rely on TV and Online Br

  7. Slide 7: Strategic goals for 2005

    ProSiebenSat.1 Group: Strategic goals for 2005 Strategic goals for 2005: Further strengthening of core business, expansion of diversification revenues, roll-out of first activities in digital. „ Increase of audience share Television „ Increase of advertising market share core business „ Further stre

  8. Slide 8: Shareholder structure ProSiebenSat.1 Media AG

    Shareholder structure ProSiebenSat.1 Media AG „ 88.0% Voting Shares „ 12.0% Voting Shares „ 0.0% Voting Shares „ 13.0% Preference Shares „ 12.0% Preference Shares „ 75.0% Preference Shares „ 50.5% Share capital „ 12.0% Share capital „ 37.5% Share capital P7S1 Holding L.P.(1) Axel Springer AG(2) Publ

  9. Slide 9: Agenda

    Agenda Introduction Company and business overview Preliminary 2004 Financials (IFRS) Outlook 9

  10. Slide 10: The German TV market - general overview

    The German TV market - general overview The German TV market is one of the most developped in Europe. Unlike in other European countries, analog terrestrial distribution only plays a minor role. „ 34.83 million TV households* - 19.48 million cable households (56%) - 13.54 million satellite household

  11. Slide 11: The German TV market - regulation of commercials

    The German TV market - regulation of commercials Commercial broadcasters „ Commercials can be aired during a 24 hour day, 7 days a week „ Up to 15% of total airtime per day and 20% maximum per hour „ Few extra regulations on number of breaks „ Regulation on content of advertising: Ban on TV advertis

  12. Slide 12: The German TV market - overview on market segments

    The German TV market - overview on market segments Private Private Public Special free-to-air free-to-air Stations Interest (first generation) (second generation) ARD Sat.1 Kabel 1 ZDF ProSieben RTL II Arte RTL VOX 3Sat ARD Dritte* Kinderkanal Phoenix The average German household receives an average

  13. Slide 13: The German TV market - Ratings

    The German TV market - Ratings Ratings for ProSiebenSat.1 Group - the audience share market leader – are on an upward trend. 14 - 49 age group, audience shares (in percent) YTD* ProSiebenSat.1 Group: 30.0% 28.9% 29.4% 28.1% 0,5% YTD* RTL Group: 25.5% 0,5% 26.1% 25.3% 4,9% 5,2% 0,6% 5,0% 0,5% 24.4% 2

  14. Slide 14: Ratings in 2004

    ProSiebenSat.1 Group: Ratings in 2004 All four stations’ performance improved in 2004, in spite of major sports events. Audience share ProSiebenSat.1 Group*, 14-49 (in percent) 31.5 30.9 30.9 30.5 30.7 30.9 30.0 30.4 29.9 30.3 29.7 30.4 Ø 2005 (YTD): 30.0% 29.6 29.5 29.0 29.5 Ø 2004: 29.4% 29.3 29.2

  15. Slide 15: 2005 programming line up

    ProSiebenSat.1 Group: 2005 programming line up New programs in 2005: Again this year, Group stations have broadest range of programming in the German television market. ƒ Telenovela ƒ Blockbusters ƒ Events & special-theme ƒ Further expansion of live Verliebt in Berlin evenings reporting Spider-Man,

  16. Slide 16: Programming rights' portfolio

    Programming rights‘ portfolio Existing rights contracts ensure best content supply in Company history. On average, cash expenditure for programming rights reaches approx. EUR 950 million per annum. Contracts with most Hollywood majors and independents „ Sony Pictures (Columbia) „ Spyglass „ Telepool

  17. Slide 17: German economy: Outlook still muted

    German economy: Outlook still muted Real gross domestic product Consumer demand 3.0 2.9 4 3.7 2.5 2.0 2.0 2.0 1.6 0.6 - 1.5 2 1.7 % 1.5 % 0.6 1.0 0.8 -0.7 0.0 -0.3 0 0.5 0.1 0.0 -0.1 -0.5 -2 1999 2000 2001 2002 2003 2004 2005E* 1999 2000 2001 2002 2003 2004 2005E* Unemployment Savings ratio (Savings

  18. Slide 18: Net volume of TV ad market only on 1997 level

    Net volume of TV ad market only on 1997 level In the years 2001 to 2003, the German TV advertising market has lost approximately EUR 0.9 bn or 19% of its peak in year 2000. German TV net advertising expenditure (EUR bn) +6.3% +6.8% +9.1% -5.1% -11.5% -3.7% ~ 0% 4.7 4.5 4.3 4.0 4.0 3.8 3.8 3.8 stabil

  19. Slide 19: The German TV market – Gross TV ad spend by sector

    The German TV market – Gross TV ad spend by sector The food industry‘s advertising spending top the list again in 2004. Gross advertising revenues, January to February 2005 and 2005 vs. 2004 Gross TV Advertising P7S1 Group RTL Group* Jan - Feb 2005 TV-Share (%) EUR m % EUR m % EUR m % Food 89.3 183.

  20. Slide 20: Top driving forces YTD 2005

    Top 10 driving forces YTD 2005 Gross TV ad spend by industries, Changes of TV ad spend (in EUR m and percent) 48.3% 36.2% 18.4% 9.4% 6.1% 38.6% 3.1% 7,674.3% 388.2% 47.9% 40 32 30 20 9 7 10 5 4 4 3 3 2 2 0 Services Other Cleaning Retail & Finance Home & Media Energy Industrial Textile & Advertising

  21. Slide 21: Top downsizing industries YTD 2005

    Top 10 downsizing industries YTD 2005 Gross TV ad spend by industries, Changes of TV ad spend (in EUR m and percent) -34.9% -14.7% -15.4% -3.9% -4.6% -7.8% -17.5% -33.0% 0 -1 -1 -2 -10 -5 -7 -11 -20 -13 -24 -30 IT & Transport Beverages Food Personal Tourism Housekeeping, Investment Communication & C

  22. Slide 22: Agenda

    Agenda Introduction Company and business overview Preliminary 2004 Financials (IFRS) Outlook 22

  23. Slide 23: Successes in 2004

    ProSiebenSat.1 Group: Successes in 2004 Besides higher revenues, cost cuts also helped improve Group profits. Revenues (in EUR m) Costs (in EUR m) 1,900 1,900 +1.5% 1,834.6 1,807.1 1,800 1,800 1,713.3 - 8% 1,700 1,700 1,600 1,600 1,576.9 1,500 1,500 2003 2004* 2003 2004* 2004 figures preliminary and

  24. Slide 24: 2004 financial statements: costs by line item

    ProSiebenSat.1 Group: 2004 financial statements ProSiebenSat.1 Group cut its costs by 8% or EUR 136 m in 2004. ProSiebenSat.1 Group total costs by line item in 2004 vs. 2003 (in EUR m) -7.3% -3.0% -19.9% -4.8% -5.6% -39.5% 1,364.5 Total cost cuts: Cost items included: 1,265.5 EUR 136 m (-8%) FY 2003

  25. Slide 25: 2004 financial statements: EBITDA

    ProSiebenSat.1 Group: 2004 financial statements EBITDA up by EUR 133 m or 70 percent. Significant improvement in EBITDA margin. ProSiebenSat.1 Group EBITDA in 2004 vs. 2003 (in EUR m) EBITDA Margin: 10.4% 17.5% 400 321.3 300 +70% 200 188.7 100 0 2003 2004 2004 figures are preliminary and unaudited 2

  26. Slide 26: 2004 financial statements: revenues by quarter

    ProSiebenSat.1 Group: 2004 financial statements Fourth quarter fell short of Group’s expectations. ProSiebenSat.1 Group revenues 2004 vs. 2003, by quarter (in EUR m) 700 600 566.3 540.2 496.0 500 466.9 436.3 411.2 400 362.7 362.1 300 200 100 0 Q1 Q2 Q3 Q4 FY 2003 FY 2004 2004 figures are preliminary

  27. Slide 27: 2004 financial statements: EBITDA by quarter

    ProSiebenSat.1 Group: 2004 financial statements Fourth quarter contributed less than expected to EBITDA. ProSiebenSat.1 Group EBITDA, 2004 vs. 2003, by quarter (in EUR m) 200 150 118.3 112.2 105.2 100 69.1 64.3 50 18.9 21.7 0.3 0 Q1 Q2 Q3 Q4 FY 2003 FY 2004 2004 figures are preliminary and unaudited

  28. Slide 28: 2004 financial statements: revenues 2000-2004

    ProSiebenSat.1 Group: 2004 financial statements Group revenues up again for first time since 2000. Best pre-tax and net profit in company´s history. ProSiebenSat.1 Group revenues 2000-2004 (in EUR m) Revenues (in EUR m) Pre-tax profit (in EUR m) 2.200 2,155.2 2,200 2.155,2 280 2.100 2,100 2,014.8 2.

  29. Slide 29: 2004 financial statements: major items

    ProSiebenSat.1 Group: 2004 financial statements Major income statement, cash flow and balance sheet items. 2004 2003 Change EUR m EUR m EUR m % Group Consolidated profit 133.6 39.4 94.2 239.3 Programming investments 923.4 1,108.6 -185.2 -16.7 Free cash flow 122.8 84.7 38.1 45.0 Programming assets 1,

  30. Slide 30: Net debt and debt instruments

    ProSiebenSat.1 Group: Net debt and debt instruments Capital increase and better operating results cut net financial debt. ProSiebenSat.1 Group net financial debt in 2004 vs. 2003 (in EUR m) Net debt/EBITDA Current long-term credit ratings: 3.5x 0.9x Moody‘s: Ba1 (stable) Fitch: BB+ (positive) 700 66

  31. Slide 31: 2004 Revenues & EBITDA by channel

    ProSiebenSat.1 Group: 2004 Revenues & EBITDA by channel All four stations showed a profit and boosted EBITDA significantly. N24 achieved break even a year early. Total revenues* (in EUR m) EBITDA* (in EUR m) 900 776.3 200 800 773.9 749.9 175.5 700 686.9 150 133.3 600 500 97.8 400 100 300 192.9 200 1

  32. Slide 32: 2004 Revenues & EBITDA for the diversification business

    ProSiebenSat.1 Group: 2004 Revenues & EBITDA for the diversification business Diversification: Revenues and profits both up at SevenOne Intermedia. Restructuring of operations causes declines at MM Merchandising Media. Total revenues* (in EUR m) EBITDA* (in EUR m) 100 20 75 64.3 67.6 59.9 11.3 51.3

  33. Slide 33: Agenda

    Agenda Introduction Company and business overview Preliminary 2004 Financials (IFRS) Outlook 33

  34. Slide 34: Outlook for 2005: Diversification

    Outlook for 2005: Diversification Diversification of revenue sources is one of the Group’s long-term strategic goals. … Goal: Reduce dependence on advertising market Method: Organic growth/acquisitions Focus: Linked to core TV business/leveraging on station brand value Margin objectives: EBITDA marg

  35. Slide 35: Outlook for 2005: Diversification - Acquisition of Euvia Media

    Outlook for 2005: Diversification Acquisition of Euvia Media: The ProSiebenSat.1 Group announced the acquisition of the remaining 51.6% of the shares of Euvia Media AG & Co. KG. „ Euvia is a specialist in the area of InterActive Corp. interactive TV channels offering entertainment and service progra

  36. Slide 36: Euvia: Transaction summary

    Euvia: Transaction summary Acquisition of Euvia Media is a good strategic opportunity that will accelerate both ProSiebenSat.1’s growth and diversification (diversification revenues to be up from 7% to approx. 11%) „ In May 2001, ProSiebenSat.1 purchased a 48.4% stake in Euvia (cash investment of EU

  37. Slide 37: Euvia: Historical financials

    Euvia: Historical financials Acquisition of Euvia Media will enable Group to consolidate revenues and profits as of the date of closing of a deal. Euvia’s results are not reflected in ProSiebenSat.1’s EBITDA line yet. 120 102 100 92 80 63 60 40 21 28 22 20 0 0 2001 2002 2003 2004 -20 -40 -34 Revenue

  38. Slide 38: Outlook for 2005: Diversification initiatives

    Outlook for 2005: Diversification Diversification initiatives. A mass medium becomes a customized service platform. The anonymous viewer becomes a personal customer. Share of revenues by 2007/2008: 15% Interactive services Direct response Retail Digital TV Teletext Direct marketing Licensing Digital

  39. Slide 39: Outlook for 2005

    ProSiebenSat.1 Group: Outlook for 2005 2005 will be a strategically significant year for the ProSiebenSat.1 Group. The Group has set clear goals for this year. 1. Higher revenues and earnings 2. Further improvement in profitability 3. Stable costs 4. Further increase in audience share 5. Expansion o

  40. Slide 40: Contact ProSiebenSat.1 Investor Relations Team

    Contact ProSiebenSat.1 Investor Relations Team Ralf Peter Gierig Director Finance & Investor Relations +49 (0)89 9507-1522 ralf.gierig@prosiebensat1.com Julia Kretschmann Ramona Köhler Investor Relations Investor Relations +49 (0)89 9507-1511 +49 (0)89 9507-1502 julia.kretschmann@prosiebensat1.com r

ProSiebenSat.1 Media — Investor Presentation (April 2005) on 6ix