ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — FY2019 Earnings Presentation
29 slides from ProSiebenSat.1 Media's earnings presentation, Mar 5, 2020
Slide 1: FY 2019 Results Presentation
ProSiebenSat.1 @E MediaSE FY 2019 RESULTS PRESENTATION March 5, 2020
Slide 2: FY 2019 agenda and presenters
FY 2019 MAX CONZE - GROUP CEO FY 2019 FINANCIAL UPDATE RAINER BEAUJEAN - GROUP CFO STRATEGY OUTLOOK MAX CONZE - GROUP CEO ProSiebenSat.1 MediaSE
Slide 3: Group Financials Overview
GROUP FINANCIALS OVERVIEW NON-TV CORE AD BUSINESS ACCOUNTING FOR >50% OF GROUP REVENUES | in EURm GROUP ENTERTAINMENT NUCOM GROUP RED ARROW STUDIOS REVENUES REVENUES REVENUES REVENUES 4,135 2,518 965 652 +3% YOY (Reported) -4% YOY (Reported) +16% YOY (Reported) +18% YOY (Reported) +2% YOY (Organic)
Slide 4: Strategy Review
STRATEGY REVIEW 2019 WAS A YEAR OF STRONG PROGRESS f Zl | Local Content . Digital Attack Smart Reach Red Arrow Studios NuCom Group 6. Transformation ProSiebenSat.1 MediaSE 160+ local formats lead to +0.4%pts TV audience share growth, reaching 28.2% market share Successful launch of Joyn with 7m mont
Slide 5: Deep Dive | Local Content
DEEP DIVE | LOCAL CONTENT INVESTMENTS IN NEW LOCA IRMATS RESULT IN A GROW AUDIENCE SHARE ON ALL P MILESTONES 2019 >160 +0.4%pts Local TV TV market premieres” share?) = —* ; +30% a tb) Digital viewing Video views time? on all platforms” . . 1) Incl. new formats and new seasons of existing formats; 2)
Slide 6: Deep Dive | Digital Attack
DEEP DIVE | DIGITAL ATTACK JOYN REACHING 7M TOTAL MONTHLY ACTIVE USERS WITHIN FIRST SIX MONTHS SUCCESSFUL MARKET ENTRY IN 2019 >7m 3.5m 6.5m Monthly total Monthly AGOF No. of active users? unique users? app installs» 79% 47% Launch of exclusive Share app Share live TV Joyn PLUS+ vs. web® vs. VOD°) o
Slide 7: Deep Dive | NuCom Group
DEEP DIVE | NUCOM GROUP. NUCOM COMPANY BUILDER AS DIVERSIFICATION PLAY MILESTONES 2019 ° ¥ flaconi eharmony ProSiebenSat.1 Media SE Note: ei jt carry through FY 2020
Slide 8: FY 2019 Financial Update
FY 2019 FINANCIAL UPDATE Rainer Beaujean - Group CFO
Slide 9: Financials: External revenues, Group & segments
FINANCIALS External revenues: Group & segments [in EUR m] FY 2019 FY 2018 YoY Group 4135 4,009 +3% Organic 4,009 3,927 +2% ing revenues Entertainment 2,518 2,626 -4% other revenues combined . 10% organic revenue Organic 2,514 2,573 2% Red Arrow Studios 652 552 +18% Share of Group revenues outside TV
Slide 10: Financials: Adjusted EBITDA, Group & segments
FINANCIALS Adjusted EBITDA: Group & segments [in EUR m] FY 2019 FY 2018 YoY Group 872 1,013 14% Entertainment 726 881 18% 1 Group in line with previously unicated adjusted EBITDA target of R 100m for FY 2019 Red Arrow Studios 48 31 +57% . . Adjusted EBITDA of Red Arrow Studios supported by strong pr
Slide 11: Financials: EBIT, net income, FCF before M&A
FINANCIALS EBIT, financial result, net income, adjusted net income, FCF before M&A [in EUR m] FY 2019 FY 2018 YoY EBIT 578 348 +66% Financial result -6 -4 n/m Net income” 413 248 +66% Adjusted net income”) 387 541 -28% FCF before M&A 339 244 +39% MediaSE 1) Attributable to shareholders of P7St; 2) R
Slide 12: Increase in net financial debt due to M&A
FINANCIALS INCREASE IN NET FINANCIAL DEBT DUE TO M&A RELATED CAPEX, 4 FCF BEFORE M&A TARGET OF EUR 300M FOR 2019 EXCEEDED Net financial debt [in EUR m] 12/31/2018 Dividend M&A Capex Disposals FCF before M&A Others 12/31/2019 H -EUR 133m | “2,163 || | NetM&Arelated capex | 20 2.245 ~~ 3 339 e@ FINANC
Slide 13: 2019 Dividend Proposal
FINANCIALS 2019 DIVIDEND PROPOSAL FY 2019 Net income? EUR 413m Adjusted net income” EUR 387m Pay-out ratio» vs. 2019 adjusted net income ~50% Total dividend pay-out (in 2020)?) EUR 192m Number of total P7S1 shares outstanding (as of Dec 31, 2019) 233,000,000 Number of treasury stock (as of Dec 31, 2
Slide 14: FY 2020 Financial Targets
FINANCIALS FY 2020 FINANCIAL TARGETS in EURm 2019A 2020 target” Comment ~4,300 ~EUR 4.3bn in base case scenario (at constant currencies”), lower/upper end Group revenues 4135 - corresponding to about -3% to +2% Entertainment ad revenues and specific (400/+100) nan’ t assumptions in terms of Group re
Slide 15: Two major steps in Group structure in 2020
FINANCIALS TWO MAJOR STEPS IN TERMS OF GROUP STRUCTURE IN 2020 Al One Entertainment Business Lean Holding * From Q1 2020 onwards we will separately disclose financial Focus on the development and details for ProSiebenSat.1's holding within reconciliation distribution of own IP * Preliminary pro form
Slide 16: Strategy Outlook
al ProSiebenSat1 @E MediaSE STRATEGY OUTLOOK £ MAX CONZE - GROUP CEO
Slide 17: Agreement to acquire The Meet Group
STRATEGY OUTLOOK PROSIEBENSAT. AGREEMENT TOA reholder proval TRANSACTION OVERVIEW ONLINE DATING SEGMENT * A leading online dating and social MATCHMAKING > ONLINE DATING entertainment platform (LTM Q3 2019: EEE ________*#SOCIAL ENTERTAINMENT Revenue: USD 206.6m; Adj EBITDA: USD 39.5m) r tl | | = ProS
Slide 18: Example of M&A and value creation model
STRATEGY OUTLOOK GREAT EXAMPLE FOR PROSIEBENSAT.1'S Al ND VALUE CREATION MODEL Vision to IPO matchmaking Participation of General vertical in 2022 Atlantic in NuCom Group with implied valuation for Parship Group of EUR 440M First M4R/E Deals with Parship eharmony acquisition based on an enterprise v
Slide 19: Outlook: Local Content, Digital Attack, Smart Reach
OUTLOOK1| 2 Vase \ ae i " ‘ 1. Local Content ~ 2. Digital Attack 3. Smart Reach r = Further grow local TV content grid = Expand Joyn as national streaming = Scale addressable and intelligent share and live content on core platform champion with over 60 live advertising solutions - target: double cha
Slide 20: Outlook: Red Arrow Studios, NuCom Group, Transformation
fy . \ —_— - ; 4. Red Arrow Studios 5. NuCom Group 4 6. Transformation = Expand local content footprint with = Deliver double-digit top/& bottom line a: Strengthen SevenOne Entertainment more commissions for Entertainment growth Group as-the leading German business and companies "e.g. develop Flacon
Slide 21: Summary: 2019 progress and 2020 ambition
|. 2019 was a year with strong progress on our strategic agenda and fundamental investments in our future Il. In 2020, we will stay the course and have an ambition to further grow and diversify revenues and stabilize adj. EBITDA Ill. All to create sustainable value for our shareholders AE tn~- ‘ i P
Slide 22: Appendix
FY 2019 APPENDIX
Slide 23: Group P&L
APPENDIX GROUP P&L [in EUR m] Q4 2019 Q4 2018 YoY FY 2019 FY 2018 YoY Revenues 1,349 1,323 42% 4135 4,009 43% Adjusted EBITDA 338 379 1% 872 1,013 14% Reconciling items -6 358 -98% 34 -443 -92% EBITDA 332 20 >100% 838 570 +47% Peon amortizationtand 91 65 +41% -260 222 +17% Thereof PPA -32 14 100% -6
Slide 24: Entertainment: External revenues and adjusted EBITDA
APPENDIX External revenues and adjusted EBITDA [in EUR m] Q4 2019 Q4 2018 YoY FY 2019 FY 2018 YoY Ext. revenues 813 827 “2% 2,518 2,626 4% Organic 812 828 2% 2,514 2,573 2% Advertising 712 725 “2% 2183 2,238 2% TV core advertising Ges 675 6% ieee 2,099 5% al & smart advertising revenue 7 in Q4 2019
Slide 25: Red Arrow Studios: External revenues and adjusted EBITDA
APPENDIX External revenues and adjusted EBITDA [in EUR m] Q42019 Q42018 YoY FY 2019 FY 2018 YoY Ext. revenues 191 191 -0% 652 552 +18% Organic 191 199 “4% 652 576 +13% Production 85 100 15% 322 296 +9% lopment of +13% on Global Sales 19 16 4+22% 63 56 +H12% ent margin improvement drives ; ong adjust
Slide 26: NuCom Group: External revenues and adjusted EBITDA
APPENDIX External revenues and adjusted EBITDA [in EUR m] Q42019 Q42018 YoY FY 2019 FY 2018 YoY Ext. revenues 346 306 +13% 965 831 +16% Organic 323 307 +5% 843 778 +8% Consumer Advice 78 73 +7% 242 204 +H19% y . % mainly due to . of Verivox following Matchmaking 53 45 +18% 209 143 +46% of German ene
Slide 27: Overview Operational KPIs
APPENDIX OVERVIEW OPERATIONAL KPIS e Entertainment Content Production & Global Sales Commerce aor9 2018 YY zors 2018 YY aor9 2018 YY Total video viewtime 1O76bn HORREN 45% # ot productions? 226 215 +5 © Fonsumer Advice! 4.8m 3.5m +37% iene) TW-consumption vin ain 3% Bot hours produced” W261 L018 +24
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Slide 29: Forward-looking statements disclaimer
ProSiebenSat1 This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("ProSiebenSat.1") or ProSiebenSat. Group, including opinions, estimates and projections regarding ProSiebenSat.l's or ProSiebenSat.1 Group's financial position, business strategy, plans and objec