Prosiebensat.1 Media Se · XETR:PSM

Prosiebensat.1 Media — Q1 2021 Earnings Presentation

28 slides from Prosiebensat.1 Media's earnings presentation, May 12, 2021

  1. Slide 1: Q1 2021

    Q1 2021Q1 2021 May 12, 2021 May 12, 2021 © SAT.1/Claudius Pflug

  2. Slide 2: Agenda

    AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review & 4. Financial Outlook Strategy © ProSieben/Richard Hübner © SAT.1/Claudius Pflug 2

  3. Slide 3: Thanks to diversification, ProSiebenSat.1 is defying the COVID-19 crisis

    THANKS TO ITS DIVERSIFICATION, PROSIEBENSAT.1 IS SUCCESSFULLY DEFYING THE COVID-19 CRISIS Positive group revenue development to EUR 938m (+1% vs. Q1 2020) supported by strong underlying performance of Dating segment and solid organic growth of Commerce & Ventures segment Entertainment segment with s

  4. Slide 4: Agenda

    AGENDA 1.1. Key Key Messages Messages 2. Financial Overview 3. Operational Review & 4. Financial Outlook Strategy © ProSieben/Richard Hübner © SAT.1/Claudius Pflug 4

  5. Slide 5: Diversified profile secures group revenue growth in demanding market environment

    DIVERSIFIED PROFILE SECURES GROUP REVENUE GROWTH IN DEMANDING MARKET ENVIRONMENT EXTERNAL REVENUES: GROUP & SEGMENTS Comments [in EUR m] • ProSiebenSat.1 Group coped well with ongoing demanding COVID-19 Q1 2021 Q1 2020 YoY environment and achieved Group revenues slightly above prior year Group 938 9

  6. Slide 6: Dating and Commerce & Ventures with notably improved profitability

    DATING AND COMMERCE & VENTURES WITH NOTABLY IMPROVED PROFITABILITY ADJUSTED EBITDA: GROUP & SEGMENTS Comments [in EUR m] • Group adjusted EBITDA decline in Q1 2021 mainly reflects lower revenues of high- Q1 2021 Q1 2020 YoY margin advertising business. However, this could largely be offset by Conten

  7. Slide 7: Significant improvement of adjusted operating FCF in Q1 2021

    SIGNIFICANT IMPROVEMENT OF ADJUSTED OPERATING FCF IN Q1 2021 EBIT, NET INCOME, ADJUSTED NET INCOME, ADJUSTED OPERATING FCF Comments [in EUR m] • EBIT remained stable in Q1 2021 along with improved reconciling items and lower Q1 2021 Q1 2020 YoY depreciation and amortization • Reported net income str

  8. Slide 8: Net debt reduction by EUR 295m compared to prior year

    NET DEBT REDUCTION BY EUR 295M COMPARED TO PRIOR YEAR NET FINANCIAL DEBT [in EUR m] Debt profile [in EUR m] 03/21 12/20 03/20 Maturity Senior notes n/a 600 600 Jan-21 -295 Term loan 151 151 151 Apr-23 RCF (74m of 750m) Apr-23 2,294 Promissory loans 275 275 275 Dec-23 1,968 1,999 Term loan 1,949 1,94

  9. Slide 9: Agenda

    AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review & 4. Financial Outlook Strategy © ProSieben/Richard Hübner © SAT.1/Claudius Pflug 9

  10. Slide 10: Strategy: connecting Entertainment, Dating and digital consumer brand businesses

    STRATEGY | WE SYSTEMATICALLY AND SYNERGISTICALLY CONNECT ENTERTAINMENT, DATING AND DIGITAL CONSUMER BRAND BUSINESSES TO CREATE LONG-TERM VALUE ENTERTAINMENT • Operates leading Entertainment platforms in linear and digital by leveraging synergies with own production and distribution house • TV channe

  11. Slide 11: Entertainment: TV ad market mainly affected by industries suffering from the pandemic

    ENTERTAINMENT | TV AD MARKET MAINLY AFFECTED BY INDUSTRIES SUFFERING FROM THE PANDEMIC NIELSEN GROSS TV ADVERTISING REVENUES GERMANY Change in EUR m Q1 2021 vs. Q1 2019 Ø -27% (-EUR 241m; Q1 2021: EUR 901m, +55 Q1 2019 EUR 660m) +27+25+23 +13 +13 +11 +5 +4 +3 +2 +2 -3 -4 -9 -10 -11 -16 -20 -21 -26 -

  12. Slide 12: Entertainment: Q1 ad revenue decline largely compensated by strong April performance

    ENTERTAINMENT | Q1 AD REVENUE DECLINE LARGELY COMPENSATED BY STRONG APRIL PERFORMANCE ENTERTAINMENT ADVERTISING REVENUES (DACH1), CHANGE YOY IN %2 ~+40% 40 30 20 10 0 -10 -20 -16% Q1 April • Q1 2021 affected by second COVID-19 lockdown in terms of Entertainment advertising revenues (DACH1: -16%, tot

  13. Slide 13: Entertainment: focus on local & live pays off

    ENTERTAINMENT | FOCUS ON LOCAL & LIVE PAYS OFF – C-FLIGHT & WATERFALL TARGETING LAUNCHED +2.0% MAIN ACHIEVEMENTS • Increased market shares for lighthouse shows (e.g. The Voice Kids +19% and GNTM +18% vs. prior season)1) Local & live • Strong performance of new shows (e.g., Stealing the Show! with Ø

  14. Slide 14: Entertainment: integrating Red Arrow Studios enables full value chain coverage

    ENTERTAINMENT | INTEGRATING RED ARROW STUDIOS ENABLES FULL VALUE CHAIN COVERAGE AN ILLUSTRATION OF OUR VALUE CHAIN: MARRIED AT FIRST SIGHT / HOCHZEIT AUF DEN ERSTEN BLICK • Originally created by Red • RASI sold the format to Arrow Studios subsidiary, 30 territories worldwide Snowman Productions in •

  15. Slide 15: Dating: social entertainment will increasingly represent a growth driver

    DATING | SOCIAL ENTERTAINMENT WILL INCREASINGLY REPRESENT A GROWTH DRIVER GOING FORWARD LIVE-VIDEO IS A MAJOR REVENUE SOURCE FOR OUR DATING SEGMENT • Running live-streaming video successfully relies on building and constantly optimizing a fully integrated solution • Live-video engages and monetizes

  16. Slide 16: Commerce & Ventures: positive developments across portfolio in Q1

    COMMERCE & VENTURES | POSITIVE DEVELOPMENTS ACROSS PORTFOLIO IN Q1 DESPITE LOCKDOWN IMPACT WHILE SOME ASSETS CONTINUE TO BENEFIT FROM THE PANDEMIC… +69% +16% revenue growth in revenue growth Q1 2021, supported by vs. Q1 2020 Valentine’s campaign … WE ARE LAYING THE FOUNDATION FOR A RECOVERY POST LOC

  17. Slide 17: Commerce & Ventures: three investments in Q1

    COMMERCE & VENTURES | THREE INVESTMENTS IN Q1: WELLSTER HEALTHTECH, SANITY GROUP AND XPLORA INVESTMENT FOCUS SPANS ACROSS ASSET LIFECYCLE Majority investments & • Media-for-revenue & growth platforms: • Standardized 360° media-for-equity • Invest cash and media media testing deals minority invests w

  18. Slide 18: Agenda

    AGENDA 1. Key Messages 2. Financial Overview 3. Operational Review & 4. Financial Outlook Strategy © ProSieben/Richard Hübner © SAT.1/Claudius Pflug 18

  19. Slide 19: We are increasing our financial targets for FY 2021

    WE ARE INCREASING OUR FINANCIAL TARGETS FOR FY 2021 Target Comment • Advertising assumptions unchanged (DACH advertising revenue development between -2% and +4%) EUR 4,250 - 4,450m • Portfolio- and currency-adjusted revenue growth in the range of Group revenues (Previous target: EUR 4,150 - 4,350m)

  20. Slide 20: ProSiebenSat.1 will continue its path towards profitable growth

    PROSIEBENSAT.1 WILL CONTINUE TO FOLLOW ITS CLEAR PATH TOWARDS PROFITABLE GROWTH ProSiebenSat.1 remains resilient in the face of the COVID-19 crisis and will continue to focus on creating value We will concentrate on leveraging synergies within and between our three segments: Entertainment, Dating an

  21. Slide 21: Appendix

    Appendix Q1 2021 May 12, 2021 © SAT.1/Claudius Pflug

  22. Slide 22: Group P&L

    GROUP P&L [in EUR m] Q1 2021 Q1 2020 YoY Revenues 938 926 +1% Adjusted EBITDA 143 157 -9% Reconciling items -5 -12 -61% EBITDA 138 145 -5% Depreciation, amortization -58 -64 -10% and impairments Thereof PPA -14 -16 -10% Operating result (EBIT) 80 80 0% Financial result -7 -38 -81% Thereof interest r

  23. Slide 23: Entertainment segment affected by ad revenue decline and myLoc deconsolidation

    ENTERTAINMENT SEGMENT AFFECTED BY AD REVENUE DECLINE AND MYLOC DECONSOLIDATION EXTERNAL REVENUES AND ADJUSTED EBITDA Comments [in EUR m] • Portfolio- and currency-adjusted revenue Q1 2021 Q1 2020 YoY decline of 6% in Q1 2021 reflects advertising revenue decline in German-speaking markets as well as

  24. Slide 24: Strong growth of The Meet Group drives first-time consolidation benefit

    STRONG GROWTH OF THE MEET GROUP DRIVES FIRST- TIME CONSOLIDATION BENEFIT EXTERNAL REVENUES AND ADJUSTED EBITDA Comments [in EUR m] • Dating revenues more than doubled Q1 2021 Q1 2020 YoY reflecting strong growth of The Meet Group and corresponding first-time consolidation effects External Revenues 1

  25. Slide 25: Strong organic growth of Commerce & Ventures segment

    STRONG ORGANIC GROWTH OF COMMERCE & VENTURES SEGMENT EXTERNAL REVENUES AND ADJUSTED EBITDA Comments [in EUR m] • While SevenVentures (Advertising) has Q1 2021 Q1 2020 YoY also been negatively affected by COVID-19 related lockdown in German-speaking markets, NuCom Group continued to grow External Rev

  26. Slide 26: Group and segment revenue breakdown

    GROUP AND SEGMENT REVENUE BREAKDOWN EXTERNAL REVENUES [in EUR m] Entertainment Dating Commerce & Ventures Total Group Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Advertising 440 510 31 33 472 542 DACH1) 391 464 31 33 422 497 Rest of the World 50 45 50 45 Distribution 44 41 44 41

  27. Slide 27: 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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