ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — FY2014 Earnings Presentation
61 slides from ProSiebenSat.1 Media's earnings presentation, Feb 26, 2015
Slide 1: FY 2014 Press Webcast
FY 2014 Press Webcast February 26, 2015 | February 26, 2015 Page 1
Slide 2: Agenda
Agenda 1 FY 2014 – At a Glance 2 FY 2014 – Financial Performance Review FY 2014 – Operational Performance 3.1 Broadcasting German-speaking 3 3.2 Digital & Adjacent 3.3 Content Production & Global Sales 4 Summary & Outlook | February 26, 2015 Page 2
Slide 3: FY 2014 At a Glance
FY 2014 At a Glance Thomas Ebeling Chief Executive Officer | February 26, 2015 Page 3
Slide 4: Major operational highlights in FY 2014
1 2 3 4 FY 2014 – At a Glance Major operational highlights in FY 2014 TV market leadership expanded despite sport events ✔ Continued strong TV ad sales and net price development ✔ Secured leading positions in key digital growth markets ✔ Further expanded TV production business in English-speaking ma
Slide 5: Key financials in FY 2014 – another record year
1 2 3 4 FY 2014 – At a Glance Key financials in FY 2014 – another record year [FY 2014 vs. FY 2013, in EURm] Revenues 2,875.6 +10.4% ✔ Recurring EBITDA 847.3 +7.2% ✔ Underlying net income 418.9 +10.3% ✔ | February 26, 2015 Page 5 Continuing operations. Audited figures.
Slide 6: Continued dynamic growth across all three business segments
1 2 3 4 FY 2014 – At a Glance Continued dynamic growth across all three business segments Broadcasting Digital & Adjacent Content Production German-speaking & Global Sales Digital Entertainment +28.1% TV Advertising +2.6% Digital Commerce +31.0% Distribution +23.5% Adjacent +5.6% Revenue +EUR 65m +E
Slide 7: 2015 Group revenue growth target exceeded at year-end 2014
1 2 3 4 FY 2014 – At a Glance 2015 Group revenue growth target exceeded at year-end 2014 [in EURm] 3,000 3,000 2015 Group revenue target 202 + EUR 824m CAGR +8.8% 2,500 2,500 124 611 95 484 38 335 2,000 2,000 14 225 172 2,063 1,924 1,926 1,998 1,866 1,500 1,500 0 1,000 2010 2011 2012 2013 2014 Broad
Slide 8: Well on track to hit our 2018 Group revenue growth target
1 2 3 4 FY 2014 – At a Glance Well on track to hit our 2018 Group revenue growth target Degree of achievement 46% 46% 107% 52% [Achievement by FY 2014, 1,000 in EURm] 800 1,000 600 600 519 400 33% 300 276 linear projection 200 107 of CMD target 137 100 0 Broadcasting German-speaking Digital & Adjace
Slide 9: Leader in audiovisual consumption
1 2 3 4 FY 2014 – At a Glance Leader in audiovisual consumption Linear TV Ad VoD Pay VoD Basic Pay TV MCN #1 portfolio #1 #1 3 channels #2 | February 26, 2015 Page 9 Maxdome is #1 SVoD player in Germany. MyVideo is #1 premium content video portal and #2 German video portal behind YouTube. Studio71 i
Slide 10: Market leading positions in our seven D&A verticals
1 2 3 4 FY 2014 – At a Glance Digital Entertainment Market leading positions in our seven D&A verticals A Digital Entertainment B Digital Commerce C Adjacent Music, Artist Mgmt., Ad VoD Pay VoD Games M4R/E 7Travel Commerce Live, Licensing Selection #1 #11 #1 #1 #4 #1 #32 #1 #2 + #1 #1 #1 #3 #2 Top #
Slide 11: Q4/FY 2014 Financial Performance Review
Q4/FY 2014 Financial Performance Axel Salzmann Review Chief Financial Officer | February 26, 2015 Page 11
Slide 12: We have achieved all of our 2014 financial targets
1 2 3 4 FY 2014 – Financial Performance Review We have achieved all of our 2014 financial targets FY 2014 financial targets and achievement ✔ 2014 achievement 2014 outlook and change (y-o-y) Group revenues high single-digit growth EUR 2,875.6m +10.4% Recurring EBITDA above prior year EUR 847.3m +7.2
Slide 13: FY 2014: double-digit revenue growth and EUR 57m recurring EBITDA improvement
1 2 3 4 FY 2014 – Financial Performance Review FY 2014: double-digit revenue growth and EUR 57m recurring EBITDA improvement Consolidated revenues Recurring EBITDA [in EURm] [in EURm] +10.4% +7.2% 2,875.6 2,800 2,605.3 1,000 790.3 847.3 2,100 750 1,400 500 700 250 0 0 FY 2013 FY 2014 FY 2013 FY 2014
Slide 14: FY 2014: further improvement of underlying net income and EPS
1 2 3 4 FY 2014 – Financial Performance Review FY 2014: further improvement of underlying net income and EPS Underlying net income Underlying EPS [in EURm] [in EUR] +10.3% +10.1% 500 2.50 418.9 1.96 400 379.7 2.00 1.78 300 1.50 200 1.00 100 0.50 0 0.00 FY 2013 FY 2014 FY 2013 FY 2014 | February 26,
Slide 15: Broadcasting German-speaking: solid revenue growth
1 2 3 4 FY 2014 – Financial Performance Review Broadcasting German-speaking: solid revenue growth of TV advertising and distribution business in 2014 External revenues and recurring EBITDA [in EURm] Q4 Q4 FY FY y-o-y y-o-y Comments 2014 2013 2014 2013 Solid TV advertising revenue Ext. revenues 664.7
Slide 16: Digital & Adjacent: dynamic revenue and recurring EBITDA growth
1 2 3 4 FY 2014 – Financial Performance Review Digital & Adjacent: dynamic revenue and recurring EBITDA growth driven by all key assets External revenues and recurring EBITDA [in EURm] Q4 Q4 FY FY y-o-y y-o-y Comments 2014 2013 2014 2013 Ext. revenues 196.9 150.3 +31.0% 610.7 483.7 +26.3% Dynamic or
Slide 17: Content Production & Global Sales: US and UK growth driver
1 2 3 4 FY 2014 – Financial Performance Review Content Production & Global Sales: US and UK business remained main growth driver External revenues and recurring EBITDA [in EURm] Q4 Q4 FY FY y-o-y y-o-y Comments 2014 2013 2014 2013 Segment revenues benefited from organic growth of US Ext. revenues 10
Slide 18: FY 2014 Group P&L – improvement of almost all key metrics
1 2 3 4 FY 2014 – Financial Performance Review FY 2014 Group P&L – improvement of almost all key metrics [in EURm] Q4 2014 Q4 2013 Δ FY 2014 FY 2013 Δ Revenues 965.9 840.8 +14.9% 2,875.6 2,605.3 +10.4% Recurring EBITDA 325.1 302.1 +7.6% 847.3 790.3 +7.2% Non-recurring items -8.2 -13.4 -38.6% -28.9 -
Slide 19: 2014 dividend proposal
1 2 3 4 FY 2014 – Financial Performance Review 2014 dividend proposal: continued attractive shareholder return 2014 dividend proposal1 • Dividend per share: EUR 1.60 • Total dividend payout1: EUR 342m Dividend yield of • AGM on May 21, 2015 4.6% • Dividend payment on May 22, 2015 (based on share pri
Slide 20: Broadcasting German-speaking: TV Performance
Broadcasting German-speaking TV Performance Thomas Ebeling Chief Executive Officer | February 26, 2015 Page 20
Slide 21: Germany and Austria with strong viewer share growth
1 2 3 4 Broadcasting German-speaking / TV Performance Germany and Austria with strong viewer share growth FY 2013 FY 2014 Germany 28.1% 28.7% Austria 21.2% 21.9% Switzerland 17.8% 17.3% | February 26, 2015 Page 21 Basis for GER: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, 3-3 h.
Slide 22: Stable TV viewing time and reach versus 2013
1 2 3 4 Broadcasting German-speaking / TV Performance Stable TV viewing time and reach versus 2013 Average daily TV viewing time – full day Average daily TV reach – full day [in minutes] [in million] 221 221 50 50 182 181 128 124 21 21 6 6 2013 2014 2013 2014 | February 26, 2015 Page 22 Basis: All G
Slide 23: Growing and outperforming key competitor in Germany
1 2 3 4 Broadcasting German-speaking / TV Performance Growing and outperforming key competitor in Germany Audience shares [Full day; in percent] vs. [Market share in %pts vs. RTL Group] +0.6%pts -1.4%pts 28.7 28.1 +4.0 26.1 +2.0%pts +2.0 24.7 FY 2013 FY 2014 FY 2013 FY 2014 ∆FY 2013 ∆FY 2014 | Febru
Slide 24: Continued strong growth of small channels
1 2 3 4 Broadcasting German-speaking / TV Performance Continued strong growth of small channels Audience shares [in percent; Adults 14-49 years] Best rating with Best daily Best monthly single format 10.0% performance 1.5% audience share 1.2% | February 26, 2015 Page 24 Basis: All German TV househol
Slide 25: Broadcasting German-speaking: Ad Market Performance
Broadcasting German-speaking Ad Market Performance Thomas Ebeling Chief Executive Officer | February 26, 2015 Page 25
Slide 26: Strongest net TV ad market growth since 2011
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Strongest net TV ad market growth since 2011 German net TV ad market growth German net TV ad market growth [in percent] 2014 by Quarter [in percent] ~3% 2.2% 1.4% 0.7% 2011 2012 2013 2014e Q1 Q2 Q3 Q4 | February 26, 2015 Page 26 Source: ZA
Slide 27: Continued leading ad share position in Germany
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Continued leading ad share position in Germany P7S1 gross TV advertising market share [in percent] FY 2013 FY 2014 Germany 43.6% 44.0% Austria 34.5% 35.4% Switzerland 26.9% 25.7% | February 26, 2015 Page 27 Source: Nielsen Media Research (
Slide 28: Significant net CPT increases since 2009
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Significant net CPT increases since 2009 Net CPT development [Index: 2007=100] 120 Market 110 100 90 80 2007 2008 2009 2010 2011 2012 2013 2014 | February 26, 2015 Page 28 Basis: All TV-HH (D+EU), TA 1-30; SevenOne Media: SAT.1, ProSieben,
Slide 29: Regional TV advertising currently being implemented
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Regional TV advertising currently being implemented Approved by Federal Administrative Court First bookings received Presumable upside potential of ~EUR 50m for market until 2018 | February 26, 2015 Page 29 March: Transmission areas of Uni
Slide 30: ProSiebenSat.1 is able to attract new TV ad clients every year
1 2 3 4 Broadcasting German-speaking / Ad Market Performance ProSiebenSat.1 is able to attract new TV ad clients every year New TV ad clients Net ad revenues new TV ad clients in Germany, SevenOne Media Ø 15% of customer [# of new TV ad clients] base* # 102 # 105 # 55 2012 2013 2014 | February 26, 2
Slide 31: Sales outlook 2015
1 2 3 4 Broadcasting German-speaking / Ad Market Performance Sales outlook 2015 1 German net TV advertising market growth of 2-3% 2 P7S1 to grow at least in line with market 3 Net CPTs to further increase due to increased value of reach 4 New business to benefit from first regional customers | Febru
Slide 32: Broadcasting German-speaking: Distribution
Broadcasting German-speaking Distribution Conrad Albert Chief Legal, Distribution & Regulatory Affairs Officer | February 26, 2015 Page 32
Slide 33: Double-digit increase in revenues and HD subscribers
1 2 3 4 Broadcasting German-speaking / Distribution Double-digit increase in revenues and HD subscribers +24% +25% EUR +1.1m +17.7m P7S1 distribution P7S1 HD revenue growth subscriber growth | February 26, 2015 Page 33 Note: HD free subscribers displayed; Paying subscriber figures as reported by pla
Slide 34: HD growth on track to hit CMD targets 2018
1 2 3 4 Broadcasting German-speaking / Distribution HD growth on track to hit CMD targets 2018 HD subscriber development Platforms will grow HD through [in m] hard bundling and upselling CAGR +15% 9.2 Politically driven analog melt down – 5.3 ~1m potential HD households 4.2 2.8 Continued technical e
Slide 35: Break-through maxdome-Unitymedia KabelBW partnership
1 2 3 4 Broadcasting German-speaking / Distribution Break-through maxdome-Unitymedia KabelBW partnership First SVoD hard bundling deal with maxdome as fixed component of Unitymedia KabelBW's tariffs Available for Horizon, Horizon Go and all connected households Significant subscriber potential with
Slide 36: P7S1 digital assets with leading coverage on key devices
1 2 3 4 Broadcasting German-speaking / Distribution P7S1 digital assets with leading coverage on key devices Smart TVs Mobile devices Game consoles Streaming devices >90% of devices >95% of devices >35% of devices Launch partner Availability on (~12m devices) (~60m devices) (~13m devices) devices 3)
Slide 37: Digital & Adjacent
Digital & Adjacent Dr. Christian Wegner Chief Digital & Adjacent Officer | February 26, 2015 Page 37
Slide 38: Dynamic double digit growth in revenues and rec. EBITDA
1 2 3 4 Digital & Adjacent Dynamic double digit growth in revenues and rec. EBITDA Ext. Revenues Rec. EBITDA Rec. EBITDA margin1 [in EURm] [in EURm] [in %] +26% +23% -0.6pts 700 150 30 611 129 600 484 105 21.8 21.2 500 100 20 400 300 50 10 200 100 0 0 0 2013 2014 2013 2014 2013 2014 | February 26, 2
Slide 39: All D&A units contributed to our strong growth
1 2 3 4 Digital & Adjacent All D&A units contributed to our strong growth … Digital Digital Commerce Adjacent Entertainment EUR EUR EUR Revenues [FY 2014] 220m 316m 75m Revenue growth [FY 2014 vs. FY 2013] +28% +31% +6% | February 26, 2015 Page 39 Note: Some restating of revenues between digital ent
Slide 40: SevenOne Media outperformed video advertising market
1 2 3 4 Digital & Adjacent / Digital Entertainment A SevenOne Media outperformed video advertising market German InStream video advertising revenue growth1 [in %, gross, FY 2014] 23% 20% 49% market share Market | February 26, 2015 Page 40 1. Market by Nielsen Media Research, gross, w/o YT, FY 2014 2
Slide 41: Studio71 is the #2 Multi Channel Network in Germany
1 2 3 4 Digital & Adjacent / Digital Entertainment Digital Entertainment A Studio71 is the #2 Multi Channel Network in Germany #2 MCN in video views >200 launched incl. international channels success format “The Mansion” >6x >250m >100 signed including #1 German webstar Gronkh 1 webstars setup studi
Slide 42: maxdome shows strong YoY performance
1 2 3 4 Digital & Adjacent / Digital Entertainment A maxdome shows strong YoY performance … +92% +71% +154% SVoD Total Total subscriber user base video views | February 26, 2015 Page 42 All figures: FY 2014 vs. FY 2013
Slide 43: Even after entry of Netflix in Germany
1 2 3 4 Digital & Adjacent / Digital Entertainment A … even after entry of Netflix in Germany maxdome maxdome SVoD net subscriber additions #1 German SVoD player1 +31% Q4 2013 Q4 2014 without Netflix with Netflix | February 26, 2015 Page 43 1. Market position provided by GfK from Jan-Dec 2014
Slide 44: We successfully started to originate deals from the US
1 2 3 4 Digital & Adjacent / Digital Commerce B We successfully started to originate deals from the US … Leading customer Market leader in fashion Market leader in rewards subscription retailing wearables application Exited in Q3 20141 | February 26, 2015 Page 44 1. Exit proceeds in Q3 2014, but con
Slide 45: Build a launch platform to further grow internationally
1 2 3 4 Digital & Adjacent / Digital Commerce B … and build a launch platform to further grow internationally • Built-up a leading media network in Europe with >200m reach • Created opportunity to collaborate on local and international ventures | February 26, 2015 Page 45
Slide 46: We completed 6 successful exits in 2014
1 2 3 4 Digital & Adjacent / Digital Commerce B We completed 6 successful exits in 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 2 1 #1 media approx. EUR 20m cash proceeds in 2014 investor | February 26, 2015 Page 46 1. Zalando IPO on October 1, 2014 2. Sold/exited to another SevenVentures portfolio company
Slide 47: Our leading Travel vertical with strong performance
1 2 3 4 Digital & Adjacent / Digital Commerce B Our leading Travel vertical with strong performance Market position #1 Revenues1 >EUR150m #1 #1 Revenue growth2 >50% #3 Outperforming market3 >20%pts Top5 | February 26, 2015 Page 47 1. FY 2014 2. From FY 2013 to FY 2014, includes inorganic growth 3. C
Slide 48: Beauty & Accessories will be our next strong vertical
1 2 3 4 Digital & Adjacent / Digital Commerce B Beauty & Accessories will be our next strong vertical 21% #1 in online retailer for correction eyeglasses #1 in sexual wellness 23% mainstream market >60% Y-o-Y revenue growth1 (not 47% consolidated) #2 in online beauty & care 51% Top 5 in online jewel
Slide 49: Starwatch market position expanded with new initiatives
1 2 3 4 Digital & Adjacent / Adjacent C Starwatch market position expanded with new initiatives Starwatch with successful label New growth initiatives releases and cooperations 56% participation in top 100 charts1 | February 26, 2015 Page 49 1. Based on Music Longplay Charts of 2014 (label and coop
Slide 50: Content Production & Global Sales
Content Production & Global Sales Thomas Ebeling Chief Executive Officer | February 26, 2015 Page 50
Slide 51: Broad presence in key markets, 55% of revenues from the US
1 2 3 4 Content Production & Global Sales Broad presence in key markets, with 55% of revenues originating in the US 18% 3% 19% UK SE/DK/NO D/AU 1 1 China 55% USA 4% IL UAE 1 1 % FY2014 Revenues Content Production & Global Sales | February 26, 2015 Page 51 1 Commercial Partner; Note: Excl. discontinu
Slide 52: Most successful Red Arrow global launch so far
1 2 3 4 Content Production & Global Sales Most successful Red Arrow global launch so far Sold in 20+ territories (incl. UK, USA, Germany, Australia, Scandinavia, Russia, CEE) Key markets USA and Germany commissioned for a second season Record breaking ratings success in multiple countries | February
Slide 53: Bosch became Amazon Studios' first original drama series
1 2 3 4 Content Production & Global Sales Bosch became Amazon Studios‘ first original drama series Premiers February 13 Based on bestselling books by Michael Connelly Starring Titus Welliver (“Argo”, “The Good Wife”) Showrunner Eric Overmyer (“The Wire”) | February 26, 2015 Page 53
Slide 54: Code is Sky Deutschland's first co-production
1 2 3 4 Content Production & Global Sales 100 Code is Sky Deutschland‘s first co-production Premiers March 19 English-language Scandinavian crime drama Directed by Academy Award winner Bobby Moresco (“Crash”, “Million Dollar Baby”) Starring Michael Nyqvist ( “Mission Impossible”) and Dominic Monagha
Slide 55: New US drama series Odyssey to premiere on NBC
New US drama series Odyssey to premiere on NBC Premiers April 5 Created by Peter Horton ("Grey's Anatomy") Produced by Fabrik Entertainment Starring Anna Friel ("Pushing Daisies") | February 26, 2015 Page 55
Slide 56: Summary & Outlook
Summary & Outlook Thomas Ebeling Chief Executive Officer | February 26, 2015 Page 56
Slide 57: Key priorities 2015
1 2 3 4 Summary & Outlook Key priorities 2015 Broadcasting Content Production & Digital & Adjacent German-speaking Global Sales Secure leading positions in all Further expand presence Further strengthen channel portfolio attractive digital ent. markets in Anglo-Saxon and attractive emerging markets
Slide 58: Good start into 2015
1 2 3 4 Summary & Outlook Good start into 2015 Positive start into 2015 across all segments supports full year outlook ✔ TV ad business growing at least in line with market ✔ Full year Group audience shares expected to grow ✔ Dynamic development of Digital & Adjacent to continue ✔ | February 26, 201
Slide 59: Financial targets for 2015
1 2 3 4 Summary & Outlook Financial targets for 2015 Group revenue growth mid to high-single digit Recurring EBITDA above prior year Underlying net income above prior year Financial leverage 1.5x – 2.5x | February 26, 2015 Page 59 Continuing operations
Slide 60: Disclaimer
Disclaimer This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media AG ("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
Slide 61: | February 26, 2015 Page 61
ProSiebenSat1 MediaAG | February 26, 2015 Page 61