Prosiebensat.1 Media Se · XETR:PSM
Prosiebensat.1 Media — Q2 2006 Earnings Presentation
32 slides from Prosiebensat.1 Media's earnings presentation, Aug 2, 2006
Slide 1: Business Performance Q2 2006 and H1 2006
Business Performance Q2 2006 and H1 2006 Guillaume de Posch, Chief Executive Officer Lothar Lanz, Chief Financial Officer Munich, August 2, 2006
Slide 2: Agenda
Agenda Highlights First Half Year 2006 Financial statements Q2 2006 (IFRS) Financial statements H1 2006 (IFRS) Outlook 2
Slide 3: ProSiebenSat.1 Group: successful first half year 2006
ProSiebenSat.1 Group: successful first half year 2006 The ProSiebenSat.1 Group continues to increase revenues and results in the second quarter 2006 and posts a successful first half year. Q2 2006 H1 2006 EUR EUR Revenues +8.5% +8.3% 550.9 m 1,016.1 m EUR EUR EBITDA +22.3% +18.2% 154.8 m 225.5 m EBI
Slide 4: ProSiebenSat.1 Group: successful first half year 2006
ProSiebenSat.1 Group: successful first half year 2006 The ProSiebenSat.1 Group continues to increase revenues and results in the second quarter 2006 and posts a successful first half year. Q2 2006 H1 2006 Pre-tax EUR EUR +16.5% +13.6% profit 136.5 m 186.6 m Consolidated EUR EUR +16.3% +13.9% net pro
Slide 5: Free TV: ratings impacted by sports events
Free TV: ratings impacted by sports events ProSiebenSat.1‘s family of stations keeps audience shares* on a high level despite sports events. As expected, ratings in June decrease due to the World Cup. In percent 31 30 29 28 27 26 25 30.2 30.3 30.5 29.2 24 23 22 24.2 21 20 Apr 06 May 06 Jun 06 H1 200
Slide 6: Free TV: programming highlights of the Group's stations
Free TV: programming highlights of the Group‘s stations Top five programs per station in Q2 2006. Audience share viewers 14-49 age group UEFA CL Live: FC Barcelona - FC Arsenal (up to 29.9%) “Verliebt in Berlin“ (up to 27.4%) “Das Wunder von Bern“ (27.0%) “Navy CIS“ (up to 20.6%) “Die drei
Slide 7: ProSiebenSat.1 Group: growth in all segments
ProSiebenSat.1 Group: growth in all segments Both divisions increase revenues and earnings. The core business Free TV benefits from the growth in the advertising market, the diversification division from the consolidation of 9Live. Diversification: Free TV Transaction TV/Other Diversification Grow
Slide 8: ProSiebenSat.1 Group: new content offerings
ProSiebenSat.1 Group: new content offerings The diversification division comprises Transaction TV, Pay TV and Video-on-Demand services. Leading Transaction Call TV TV brand Pay-TV Pay-TV Video- Video- on-Demand on-Demand 8
Slide 9: Agenda
Agenda Highlights First Half Year 2006 Financial statements Q2 2006 (IFRS) Financial statements H1 2006 (IFRS) Outlook 9
Slide 10: Q2 2006 - revenues and costs
ProSiebenSat.1 Group: Q2 2006 - revenues and costs Rise in revenues due to higher advertising revenues and full consolidation of 9Live*. The contribution to group revenues from 9Live comes to EUR 22.3 million in Q2 2006. In EUR m Revenues Costs +8.5% 600 600 550.9 507.8 500 500 + 4.1% 408.7 392.5 40
Slide 11: Q2 2006 - total costs
ProSiebenSat.1 Group: Q2 2006 - total costs Increase in total costs mainly caused by consolidation of 9Live. ProSiebenSat.1 Group total costs by line item, Q2 2006 vs. Q2 2005, in EUR m +4.6% +1.9% +2.4% +3.5% +8.2% +20.5% 350 325.5 311.1 Total cost increase: Q2 2005 300 EUR 16.2 million Q2 2006 (+4
Slide 12: Q2 2006 - results
ProSiebenSat.1 Group: Q2 2006 - results Revenue growth positively influences earnings. EBITDA and pre-tax profit grow disproportionately. In EUR m EBITDA Pre-tax profit 160 +22.3% 154.8 160 +16.5% 136.5 126.6 117.2 120 120 80 80 40 40 0 0 Q2 2005 Q2 2006 Q2 2005 Q2 2006 12
Slide 13: Q2 2006 - consolidated net profit / EPS
ProSiebenSat.1 Group: Q2 2006 - consolidated net profit / EPS Increase in consolidated net profit and earnings per share*. Consolidated net profit (in EUR m) Earnings per Share* (in EUR) +14.7% +16.3% 0.4 0.39 83.4 80 0.34 71.7 0.3 60 0.2 40 0.1 20 0 0.0 Q2 2005 Q2 2006 Q2 2005 Q2 2006 * Preference
Slide 14: June 30, 2006 - Net financial debt
ProSiebenSat.1 Group: June 30, 2006 - Net financial debt Sharp decrease of net debt. Significant increase in operating cash flow because of improved earnings and better working capital. Net debt / LTM*-EBITDA Instruments on June 30, 2006 1.2x 0.1x 400 400 392.5 325 300 RCF 300 200** 200 150 Notes No
Slide 15: Q2 2006 - key figures
ProSiebenSat.1 Group: Q2 2006 - key figures Major income statement, cash flow and balance sheet items Q2 2006 Q2 2005 Change EUR m EUR m EUR m Percent Revenues 550.9 507.8 43.1 8.5 EBITDA 154.8 126.6 28.2 22.3 EBIT 144.9 118.0 26.9 22.8 Financial loss -8.4 -1.0 -7.4 -740.0 Pre-tax profit 136.5 117.2
Slide 16: Free TV: Q2 2006 - key figures by stations
Free TV: Q2 2006 - key figures by stations Sat.1, N24 and kabel eins increase profitability. ProSieben stabilizes revenues in Q2 2006. In EUR m Key figures by stations Revenues EBITDA Pre-tax profit Q2 2006 Q2 2005 % Q2 2006 Q2 2005 % Q2 2006 Q2 2005 % 231.1 208.5 10.8 64.4 43.8 47.0 65.1 43.4 50.0
Slide 17: Q2 2006 - key figures by segments
ProSiebenSat.1 Group: Q2 2006 - key figures by segments All segments of the ProSiebenSat.1 Group increase revenues and results. In EUR m Key figures by segments Total revenues External revenues EBITDA Operating profit Q2 2006 Q2 2005 % Q2 2006 Q2 2005 % Q2 2006 Q2 2005 % Q2 2006 Q2 2005 % Free TV 51
Slide 18: Agenda
Agenda Highlights First Half Year 2006 Financial statements Q2 2006 (IFRS) Financial statements H1 2006 (IFRS) Outlook 18
Slide 19: H1 2006 - revenues and costs
ProSiebenSat.1 Group: H1 2006 - revenues and costs Revenue growth due to higher advertising revenues and consolidation of 9Live*. The contribution to group revenues from 9Live amounts to EUR 48.1 million. In EUR m Revenues Costs +8.3% 900 1,016.1 + 6.0% 815.7 1.000 937.8 800 769.6 700 800 600 600 50
Slide 20: H1 2006 - results
ProSiebenSat.1 Group: H1 2006 - results EBITDA and pre-tax profit grow disproportionately. In EUR m EBITDA Pre-tax profit +18.2% +13.6% 240 225.5 210 186.6 210 190.8 180 164.3 180 150 150 120 120 90 90 60 60 30 30 0 0 H1 2005 H1 2006 H1 2005 H1 2006 20
Slide 21: H1 2006 - consolidated net profit / EPS
ProSiebenSat.1 Group: H1 2006 - consolidated net profit / EPS Increase in consolidated net profit and earnings per share*. Consolidated net profit (EUR m) Earnings per share* (EUR) 120 +13.9% 114.2 0.6 +12.8% 0.53 100.3 100 0.47 80 0.4 60 40 0.2 20 0 0.0 H1 2005 H1 2006 H1 2005 H1 2006 *Preference s
Slide 22: H1 2006 - Key Figures
ProSiebenSat.1 Group: H1 2006 - Key Figures Major income statement, cash flow and balance sheet items H1 2006 H1 2005 Change EUR m EUR m EUR m Percent Revenues 1,016.1 937.8 78.3 8.3 EBITDA 225.5 190.8 34.7 18.2 EBIT 206.0 174.8 31.2 17.8 Financial loss -19.4 -11.1 -8.3 -74.8 Pre-tax profit 186.6 16
Slide 23: Free TV: H1 2006 - key figures by stations
Free TV: H1 2006 - key figures by stations ProSieben: Lower audience share in 2005 and reduction in internal program sales influence revenues especially in Q1 2006. In EUR m Key figures by stations Revenues EBITDA Pre-tax profit H1 2006 H1 2005 % H1 2006 H1 2005 % H1 2006 H1 2005 % 425.2 395.4 7.5 9
Slide 24: H1 2006 - key figures by segments
ProSiebenSat.1 Group: H1 2006 - key figures by segments Other Diversification segment: Reallocation of revenues within the diversification division results in a slight reduction of revenues. In EUR m Key figures segments Total revenues External revenues EBITDA Operating profit H1 2006 H1 2005 % H1 2
Slide 25: Agenda
Agenda Highlights First Half Year 2006 Financial statements Q2 2006 (IFRS) Financial statements H1 2006 (IFRS) Outlook 25
Slide 26: Strategic goals
ProSiebenSat.1 Group: Strategic goals ProSiebenSat.1 Group pursues three strategic goals to strengthen its position as leading commercial TV provider in Germany. Leading commercial TV group in Germany 1 2< 3 Strengthening the Expansion of diversification Positioning for the core TV business digital
Slide 27: Outlook 2006: core TV business
Outlook 2006: core TV business ProSiebenSat.1 Group expects net TV advertising spendings to grow by 2 percent in 2006. Net TV advertising investments, changes from previous year, in percent 4 c. 2 2 1.3 0.5 0 2003 2004 2005* 2006e* -2 -4 -3.7 Source: ZAW/*own estimate 27
Slide 28: Outlook 2006: programming highlights fall 2006
Outlook 2006: programming highlights fall 2006 Family of stations to start with attractive programming into H2 2006. Programming highlights of the stations in Q3 2006. First-class TV for a broad audience: In-house productions: “Der Bulle von Tölz“, new in fall: “Stadt Land Mord!“ “Crime Sunday“
Slide 29: Diversification: growth areas
Diversification: growth areas Growth in diversification rests on four pillars. New Organic Acquisitions Additional offers growth distribution Pay-TV: Launch of Internet Full consolidation Free TV and Pay TV kabel eins classics of 9Live channels to be and Sat.1 Comedy Mobile offerings (sinc
Slide 30: Diversification: maxdome started on July 27, 2006
Diversification: maxdome started on July 27, 2006 ProSiebenSat.1 and United Internet launched their joint VoD platform “maxdome” on July 27, 2006. Commercial push in September 2006. Strategic rationale: Enter the growing VoD market Deal structure: United Internet: Hosting/Streaming, Billing & Cleari
Slide 31: Outlook 2006: digital world of ProSiebenSat.1
Outlook 2006: digital world of ProSiebenSat.1 More variety for viewers and consumers: ProSiebenSat.1 uses new distribution channels to enlarge its services. 1. Cable / satellite / terrestrial 2. ADSL / Internet 3. Mobile networks 1. Free TV 2. Transaction TV 3. Pay TV/ non-linear content Video-on-De
Slide 32: ProSiebenSat.1 Media AG Corporate Office
ProSiebenSat.1 Media AG Corporate Office Medienallee 7 D-85774 Unterföhring Tel. +49/89/95 07-11 80 Fax +49/89/95 07-11 84 32