ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Merger or Acquisition (June 2007)
38 slides from ProSiebenSat.1 Media's merger presentation, Jun 27, 2007
Slide 1: Investor & Analyst Call
Investor & Analyst Call ProSiebenSat.1 and SBS: The perfect fit Creating a pan-European Broadcasting Group Guillaume de Posch, CEO Patrick Tillieux, CEO SBS Lothar Lanz, CFO Jürgen von Schwerin, CFO SBS Munich, June 27, 2007 1
Slide 2: Agenda
Agenda Transaction rationale Transaction structure The new ProSiebenSat.1 Group Appendix 2
Slide 3: ProSiebenSat.1 and SBS: The perfect fit
ProSiebenSat.1 and SBS: The perfect fit The new Group Pan-European Decisive step in corporate development of broadcasting ProSiebenSat.1 and SBS champion Complementary geographic fit and excellent market positions in Free TV, Pay TV, Internet, Radio Major step to accelerate diversification C
Slide 4: A pan-European broadcasting Group: Competitive advantages
A pan-European broadcasting Group: Competitive advantages The new Company operates as an integrated Group 1. Development of content on a pan-European basis 2. Expansion of program sourcing relationships with European and US suppliers 3. Creation and roll-out of multi-territory online and digital pla
Slide 5: A pan-European broadcasting Group: It is all about content
A pan-European broadcasting Group: It is all about content O.C., California Cold Case Germany‘s next Topmodel Popstar Megastar Hello Goodbye Grey‘s Anatomy 5
Slide 6: More scale and creativity to produce and broadcast top-quality programming
More scale and creativity to produce and broadcast top-quality programming Initiative Advantage Example Back-to-back productions Scale advantage for format rights deals/ Stars on Ice pan-European productions and deal negotiations Clever Joint developments Joint development and piloting to leverage c
Slide 7: ProSiebenSat.1 Group: Corporate history
ProSiebenSat.1 Group: Corporate history A clear path towards scale and growth in German speaking countries. 1984 1989 1992 1997 2000 2002 2003 2004 2005 2006 2007 Free TV Diversification/ New Media ProSiebenSat.1 Networld IPO of ProSieben Media AG Merger of Sat.1 and ProSieben: Formation of ProSiebe
Slide 8: ProSiebenSat.1 Group: Dynamic growth since 2003
ProSiebenSat.1 Group: Dynamic growth since 2003 Revenues EBITDA EBITDA margin In EUR m In EUR m In percent 600 23.2 2200 2,140 23.0 2,105 CAGR: 15% 21.0 484 496 2,015 500 1,990 2000 1,895 419 17.5 1,807 1,835 400 1800 321 11.9 300 1600 10.4 240 189 200 9.0 1400 170 1200 100 1000 0 2001 2002 2003 200
Slide 9: SBS Broadcasting Group: Corporate history
SBS Broadcasting Group: Corporate history Dynamic development of the company in Europe. 1989 1991 1994 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 Free TV Pay TV/Radio/Print 9
Slide 10: SBS Broadcasting Group: Strong profitable growth
SBS Broadcasting Group: Strong profitable growth Revenues EBITDA EBITDA margin In EUR m In EUR m In percent 250 1200 223 1,032 207 21.6 1,003 CAGR: 58% 20.6 1000 200 880 16.5 800 15.4 145 678 150 582 12.6 600 511 104 480 100 73 400 7.1 4.4 50 36 200 21 0 0 2001 2002 2003 2004 2005 2006 LTM Q1 2001 2
Slide 11: SBS Broadcasting Group: Overview media portfolio
SBS Broadcasting Group: Overview media portfolio Free/Pay TV Radio/Print Free/Pay TV Radio/Print Norway Finland Sweden Denmark Netherlands Hungary Romania Belgium Bulgaria Greece 11
Slide 12: Both groups with excellent market positions
Both groups with excellent market positions Complementary geographic fit. SBS regions 200 million 13 countries Leading commercial Free TV operator: viewers # 2 in Netherlands, Belgium, Norway, Sweden, Hungary 77 million TV households # 3 in Denmark, Romania # 2 radio operator # 1 premium Pay
Slide 13: The new Group: Second largest TV reach in Europe
The new Group: Second largest TV reach in Europe EU TV households In m 125 118 100 77 75 36 50 25 41 35 25 25 25 13 13 0 T E L E C I N C O EU countries + Switzerland. Source: World Screen; Television Key Facts 2006. 13
Slide 14: The new Group: Substantially increased revenue base and solid EBITDA margin
The new Group: Substantially increased revenue base and solid EBITDA margin Revenues 2006 EBITDA 2006 EBITDA margin 2006 In EUR m In EUR m In percent 3500 1000 3,108 23.0 20.6 22.2 3000 +48% 750 691 2500 2,105 +43% 2000 484 500 1500 1,003 1000 250 207 500 0 0 ProSiebenSat.1 SBS Pro forma combined* P
Slide 15: The new Group: Free TV peer group supports margin upside
The new Group: Free TV peer group supports margin upside EBITDA margin 2006 In percent 50 44.6% 40 34.8% 34.4% 30.8% 30.6% 30 Average EBITDA margin: 26.7* 23.4% 22.2% 18.7% 18.7% 20 15.5% 15.2% 10 0 Telecinco Antena 3 TVN Mediaset CME M6 ProSieben RTL Group ITV TF1 Modern Sat.1** Times Group Medium-
Slide 16: The new Group: Reducing dependency on single markets
The new Group: Reducing dependency on single markets Revenues 2005 Revenues 2006 In EUR m In EUR m 3500 3500 3,108 3000 2,870 3000 2500 32% 2500 31% 2,105 2000 1,990 2000 1500 1500 100% 69% 100% 68% 1,003 1000 880 1000 14% 14% 500 45% 500 48% 41% 38% 0 0 ProSiebenSat.1 SBS Pro forma combined ProSieb
Slide 17: The new Group: Decisive step to accelerate diversification of revenues
The new Group: Decisive step to accelerate diversification of revenues Revenue shares 2006 of business areas. In percent ProSiebenSat.1 11 Pro forma combined Free TV New Media/Diversification 89 - Subscription TV 17 - Transaction TV - Online - Radio - Print SBS* - Merchandising 83 - Licencing -
Slide 18: Agenda
Agenda Transaction rationale Transaction structure The new ProSiebenSat.1 Group Appendix 18
Slide 19: The transaction: Overview
The transaction: Overview ProSiebenSat.1 acquires 100 percent of SBS Broadcasting Group. ProSiebenSat.1 acquires 100 percent of SBS Broadcasting Group from SBS shareholders Transaction value of EUR 3.3 bn Not subject to further approval by antitrust or media regulators Closing expected by ea
Slide 20: The new ProSiebenSat.1 Group: Shareholder structure
The new ProSiebenSat.1 Group: Shareholder structure Capital stock Common stock In percent In percent 12.0 Public free float 37.33 Axel Springer AG 50.67 Axel Springer AG Lavena Holding 5 GmbH* Lavena Holding 5 GmbH* 12.00 88.0 Telegraaf Media Group has an option to acquire 12 percent of ProSiebenS
Slide 21: The transaction: EBITDA multiples
The transaction: EBITDA multiples Acquisition multiples SBS Broadcasting Group valued EUR 3.3 bn (enterprise value) 16 14.8x 15.1x 13.7x Implied LTM EBITDA multiple excluding synergies 14 is in line with the average of comparable precedent 12 transactions in the sector over the last two years 10
Slide 22: The transaction: Financing
The transaction: Financing Leverage multiples post 100 percent cash transaction financed through acquisition of SBS* new senior secured debt facilities. Existing notes will be redeemed prior to their maturity in August 6 2007. 4.8x Debt level leaves sufficient headroom for ongoing 4.3x operative
Slide 23: The transaction: Significant synergy potential
The transaction: Significant synergy potential Synergy areas and potential within the next three years. Synergy areas Synergy potential Cost Support functions synergies Own and commissioned productions License acquisitions EUR 80–90 m Diversification Content/play-out/distribution within 3
Slide 24: Purchase price allocation: Effects only on Group level
Purchase price allocation: Effects only on Group level Not relevant for ProSiebenSat.1 Media AG and dividend potential. Goodwill and Fair value Earnings impact of purchase price allocation intangible assets (estimates) In EUR m 2007 2008 2009 2010 2011 … 2015 Goodwill 2,620 - 2,480 - - - - - … - Int
Slide 25: The new ProSiebenSat.1 Group: Business areas and segments
The new ProSiebenSat.1 Group: Business areas and segments The new ProSiebenSat.1 Group Business area Free TV Diversification Segment Free TV Subscription TV Transaction TV Other Media Germany/ International C More 9Live Online Austria/ SBS 6 (Premium Pay) 9Live International Radio Switzerland Ne
Slide 26: Agenda
Agenda Transaction rationale Transaction structure The new ProSiebenSat.1 Group Appendix 26
Slide 27: The new Group
The new Group All affiliates are wholly owned by the Group Creating a pan-European Content powerhouse broadcasting Group Perfect cultural fit: Entrepreneurial, fast, innovative 27
Slide 28: The new ProSiebenSat.1 Group: Management board
The new ProSiebenSat.1 Group: Management board Integrated Group structure. Executive Board headquartered in Munich. Sales & Marketing COO CEO CFO New Media Peter Christmann Patrick Tillieux Guillaume de Posch Lothar Lanz Marcus Englert (designated) Sales Germany/ Group Operations Group Content
Slide 29: The new ProSiebenSat.1 Group: Channel managing directors
The new ProSiebenSat.1 Group: Channel managing directors An international culture: Highly experienced channel managers. Norway Germany Germany Germany Romania Belgium Morten Matthias Andreas Guido Christoph Ricus Aass Alberti Bartl Bolten Buerge Jansegers Hungary Denmark Germany Sweden Netherlands G
Slide 30: The new Group operating model: Think local, act global
The new Group operating model: “Think local, act global” Clear P&L responsibility within channels coordinated by centralized Group functions TV stations and business units Advertising / sales Increased attraction for international brands Content acquisition Additional scale improves access to progra
Slide 31: ProSiebenSat.1 Group: A new dimension in strategy
ProSiebenSat.1 Group: A new dimension in strategy ProSiebenSat.1 Group 1 2 3 Develop Free TV Develop New Media/ Develop Content Diversification Growth Further increase in revenues and earnings coupled with continued cost control and integration effects lead to: Increased mid-term margin goal of betw
Slide 32: The power of television
Mission statement The power of television The ProSiebenSat.1 Group is a leading pan-European broadcasting Group. We provide people with first-class entertainment and comprehensive information – whenever they need it, wherever they are.
Slide 33: Agenda
Agenda Transaction rationale Transaction structure The new ProSiebenSat.1 Group Appendix 33
Slide 34: SBS: Group historical financials
SBS: Group historical financials Revenue split by segment Cash flow / Balance sheet In EUR m 2005A 2006A Q1 06A Q1 07A Cash Flows 2005A 2006A Q1 06A Q1 07A FTA 633.6 706.7 149.2 170.4 In EUR m C-More 113.5 146.3 36.4 36.8 Working capital** 22.9 -39.0 -22.4 5.0 Radio 63.7 81.8 16.2 19.0 CapEx -34.9 -
Slide 35: SBS: Free TV overview
SBS: Free TV overview Revenue split by cluster Audience share by country In EUR m 2005A 2006A Q1 06A Q1 07A In Percent 2005A 2006A Q1 06A* Q1 07A* (1) NL/Belgium 287.9 315.6 63.7 70.5 Netherlands 25.5 24.2 24.9 24.7 (2) Nordic 230.9 271.4 62.1 70.4 Norway 15.6 14.1 13.8 13.9 (3) CEE 114.8 119.7 23.4
Slide 36: SBS: Other operations overview
SBS: Other operations overview C-More Radio Print revenue revenue revenue In EUR m 2005A 2006A Q106A Q107A In EUR m 2005A 2006A Q106A Q107A In EUR m 2005A 2006A Q106A Q107A Total 113.5 146.3 36.4 36.8 Total 63.7 81.8 16.2 19.0 Total 68.1 66.8 13.7 15.9 Subscribers 2006 Revenue split Circulation by c
Slide 37: Disclaimer
Disclaimer This presentation contains “forward looking statements” regarding ProSiebenSat.1 Media AG (“ProSieben- Sat.1”), including opinions, estimates and projections regarding ProSiebenSat.1’s or ProSiebenSat.1 Group’s financial position, business strategy, plans and objectives of management and
Slide 38: ProSiebenSat.1 Media AG Corporate Office
ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D-85774 Unterföhring Tel. +49/89/95 07-1151 Fax +49/89/95 07-91151 38
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