powerpoint-präsentation...dec 06, 2016 · revenues booked in q3 2016 (without 44 blue); 3) %...
TRANSCRIPT
| October 13, 2016 |
The power of television
November 3, 2016
Q3 2016IR Presentation
| November 3, 2016 |
The power of television
November 3, 2016
Q3 2016 – At a GlanceThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
Key financials in Q3 2016
3Continuing operations
[Q3 2016 vs. Q3 2015; in EUR m]
3 41 2 Q3 – At a Glance
Revenues
Recurring EBITDA
Underlying net income
857 +15%
202
87
+13%
+11%
| November 3, 2016 || November 3, 2016 |
Q3 2016: Group revenue growth driven by all segments
4
Ext. segment revenues[in EUR m; growth rates in %]
+2% +23% +34%
Broadcasting German-speaking
Content Production & Global Sales Digital Entertainment Digital Ventures &
Commerce
+44%
[in EUR m]
3 41 2 Q3 – At a Glance
8099
Q3 2015 Q3 2016
465 472
Q3 2015 Q3 2016
125
181
Q3 2015 Q3 2016
74100
Q3 2015 Q3 2016
| November 3, 2016 || November 3, 2016 |
Major operational highlights
51) maxdome cooperation with Deutsche Bahn is a closed circuit service
3 41 2 Q3 – At a Glance
New leading subscription-based asset in Dating
Dynamic performance of acquired companies
New minority investment in online price comparison
Launch of new linear online video platform
New and extended distribution deals
TV TV
VoD1)
+
Anchor assets inHealth & Wellbeing
| November 3, 2016 || November 3, 2016 |
2018 Group revenue growth target and achievement by Q3 2016
61) As of Q3 2016
Degree of achievement1) 59% 60%Pro-rata target 63% 63%
Required CAGR by 2018 +10% +7%
2018 Group revenue and rec. EBITDA target[in EUR m]
2018 segment revenue targets[in EUR m]
1,926
227108 95
2,188
447655
328
2,301
563
1,172
470
Broadcasting German-speaking
Digital Entertainment Digital Ventures &Commerce
Content Production &Global Sales
2018 target2012 Q3 2016 (LTM)
70% 65% 51% 62%63% 63% 63% 63%
+2% +11% +30% +17%
2,356
745
3,631
983
4,506
1,145
ProSiebenSat.1 Group Rec. EBITDA
3 41 2 Q3 – At a Glance
| November 3, 2016 || November 3, 2016 |
We confirm our positive full-year guidance
7
Group revenue growth to exceed +15%
German TV ad market to grow 2% plus in 2016
Digital Entertainment and Digital Ventures & Commerce with double-digit revenue growth
Recurring EBITDA and underlying net income above prior year
3 41 2 Q3 – At a Glance
P7S1 TV ad revenue growth slightly below market
| November 3, 2016 |
The power of television
November 3, 2016
Q3/9M 2016 – Financial Performance Dr. Gunnar WiedenfelsChief Financial Officer
| November 3, 2016 || November 3, 2016 |
Q3 2016: dynamic revenue and recurring EBITDA increase
9Continuing operations
Consolidated revenues [in EUR m]
Recurring EBITDA[in EUR m]
0
300
600
900
0
100
200
300
202178
+15%
Q3 2016
747857
Q3 2015 Q3 2016Q3 2015
+13%
3 41 2 Q3/9M – Financial Performance
Q3 2016: Recurring EBITDA margin of 24%
| November 3, 2016 || November 3, 2016 | 10Continuing operations; 1) Q3 2015: underlying net income restated due to retrospective adjustments of valuation effects of put-options and earn-out liabilities
Q3/9M – Financial Performance
10
Financial result[in EUR m]
Underlying net income[in EUR m]
-50
-25
0
25
-35
-1
>+100%
Q3 2016Q3 20150
20
40
60
80
100
+11%
Q3 2016
87
Q3 20151)
79
3 41 2
Q3 2016: valuation effects recognized in the financial result adjusted in underlying net income
| November 3, 2016 || November 3, 2016 |
9M 2016: double-digit revenue and recurring EBITDA increase
11Continuing operations
Q3/9M – Financial Performance
11
Consolidated revenues [in EUR m]
Recurring EBITDA[in EUR m]
9M 2016: Recurring EBITDA margin of 25%
0
1,000
2,000
3,000
0
250
500
750626568
+17%
9M 2016
2,1742,545
9M 2015 9M 20169M 2015
+10%
3 41 2
| November 3, 2016 || November 3, 2016 | 12Continuing operations; 1) 9M 2015: underlying net income restated due to retrospective adjustments of valuation effects of put-options and earn-out liabilities
Q3/9M – Financial Performance
9M 2016: further high single-digit underlying net income growth
Financial result[in EUR m]
Underlying net income[in EUR m]
-100
-75
-50
-25
0
25
+38%
9M 20169M 20150
100
200
300
+8%
9M 20169M 20151)
3 41 2
-69-50
294271
| November 3, 2016 || November 3, 2016 | 13Continuing operations, recurring EBITDA on entity basis
Q3/9M – Financial Performance3 41 2
Broadcasting German-speaking: continued positive development of revenue and profits
Q3 2016
Q3 2015 y-o-y 9M
20169M
2015 y-o-y Comments
Ext. revenues 472 465 +2% 1,506 1,470 +2% Q3 TV ad revenues reflectsports events and strong prioryear (Q3 2015: +5.2%). 9MTV ad revenues in line withfull-year guidance. Continueddistribution revenue growthdriven by HD, mobile/OTT.
TV advertising 424 423 +0% 1,374 1,352 +2%
Distribution 30 26 +16% 90 80 +12%
Rec. EBITDA 147 137 +7% 479 460 +4%Solid margin development inQ3 and 9M 2016 supportedby internal revenue growth.
External revenues and recurring EBITDA[in EUR m]
| November 3, 2016 || November 3, 2016 |
Digital Entertainment: solid revenue growth marked by mix effects
14Continuing operations, recurring EBITDA on entity basis
Q3/9M – Financial Performance3 41 2
Q3 2016
Q3 2015 y-o-y 9M
20169M
2015 y-o-y Comments
Ext. revenues 99 80 +23% 304 228 +33% Segment revenues benefitingfrom dynamically growingAdVoD business with strongsupport from CDS/Studio71and AdTech business.Continued solid growth ofmaxdome. Q3 2016 reflectsdeconsolidation of Games.
AdVoD 70 38 +82% 198 ./. ./.
PayVoD 21 17 +21% 61 ./. ./.
Adjacent 8 13 -39% 26 ./. ./.
Games 0 12 -100% 20 ./. ./.
Rec. EBITDA 4 4 0% 19 23 -15%Q3/9M 2016 segmentprofitability burdened byAdjacent revenue decline.
External revenues and recurring EBITDA[in EUR m]
| November 3, 2016 || November 3, 2016 | 15Continuing operations, recurring EBITDA on entity basis
Digital Ventures & Commerce: overall dynamic revenue growth
Q3/9M – Financial Performance3 41 2
Q3 2016
Q3 2015 y-o-y 9M
20169M
2015 y-o-y Comments
Ext. revenues 181 125 +44% 483 293 +65% Dynamic revenue increasedriven by double-digit organicsegment revenue growth inQ3 and consolidation effects.Development of Seven-Ventures in Q3 reflects strongprior-year comparable figures.
Online Price Comparison 23 9 >+100% 74 ./. ./.
Online Travel 92 65 +42% 233 ./. ./.
Lifestyle Commerce 37 18 +100% 85 ./. ./.
SevenVentures 29 34 -13% 91 ./. ./.
Rec. EBITDA 40 35 +14% 105 81 +30%Double-digit rec. EBITDAgrowth both in Q3 and 9M2016.
External revenues and recurring EBITDA[in EUR m]
| November 3, 2016 || November 3, 2016 | 16Continuing operations; recurring EBITDA on entity basis
Content Production & Global Sales: significant improvement of revenues and profitability
Q3/9M – Financial Performance3 41 2
External revenues and recurring EBITDA[in EUR m]
Q3 2016
Q3 2015 y-o-y 9M
20169M
2015 y-o-y Comments
Ext. revenues 100 74 +34% 240 174 +38%Segment revenues benefitingfrom contribution of acquiredassets Karga7, DorseyPictures and 44 Blue as wellas organic revenue growthparticularly of US productionbusiness.
Total revenues 111 92 +20% 284 216 +32%
Rec. EBITDA 11 5 >100% 27 10 >100%Meaningful improvement ofsegment profitability in Q3and 9M 2016.
| November 3, 2016 || November 3, 2016 |
Q3/9M 2016: Group P&L – improvement of all key metrics
17Continuing operations; 1) Adjusted in underlying net income; 2) Result for the period attributable to shareholders of ProSiebenSat.1 Media SE; 3) Adjusted for valuation effects of Group Share Plan, PPA as well as valuation effects of at-equity investments, put-options and earn out liabilities and financial assets; 4) Restated due to retrospective adjustment of valuation effects of put-options and earn-out liabilities
Q3/9M – Financial Performance3 41 2
[in EUR m] Q3 2016 Q3 2015 Δ 9M 2016 9M 2015 ΔRevenues 857 747 +15% 2,545 2,174 +17%Recurring EBITDA 202 178 +13% 626 568 +10%
Non-recurring items -13 -11 +15% -18 -30 -40%EBITDA 188 166 +13% 608 538 +13%
Depreciation and amortization -52 -35 +48% -138 -97 +43%Thereof PPA1) -14 -7 +94% -39 -18 >+100%
Operating result (EBIT) 137 131 +4% 470 441 +6%Financial result -35 -1 >+100% -69 -50 +38%
Thereof interest result -19 -23 -15% -65 -63 +3%Thereof valuation effects1) -9 28 ./. 7 22 -68%
Earnings before tax (EBT) 102 130 -22% 401 392 +2%Net income2) 68 73 -7% 271 252 +7%Underlying net income3) 87 794) +11% 294 2714) +8%
| November 3, 2016 || November 3, 2016 | 18Financial leverage: Net debt/LTM rec. EBITDA (LTM rec. EBITDA of EUR 983m (previous year: EUR 893m) for continuing operations)
Q3/9M – Financial Performance
Net financial debt
1,953
466
2,419
0
500
1,000
1,500
2,000
2,500
3,000
30/09/2015 Change 30/09/2016
Financial leverage
2.2x
2.5x
Net debt[in EUR m]
Financial leverage at the end of Q3 2016 reflects M&A activity
3 41 2
| November 3, 2016 || November 3, 2016 |
Financial outlook for 2016
19
Q3/9M – Financial Performance3 41 2
Financial leverage 1.5x – 2.5x
Recurring EBITDA above prior year
Underlying net income above prior year
Group revenue growth >+15%
| November 3, 2016 |
The power of television
November 3, 2016
Broadcasting German-speaking& Red ArrowThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
Key achievements Q3 2016
21
Maintaining leading position in the German TV market
Launch of seven new TV apps on mobile and SmartTVs
Continuous improvement of Red Arrow KPIs
3 41 2 Broadcasting German-speaking & Red Arrow
| November 3, 2016 || November 3, 2016 |
Ratings again reflect summer Olympics and soccer cup aired on publics
1) Basis (GER): All German TV households (GER+EU/German-speaking), A 14-49; Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland; 2) Basis (AT): A 12-49, Mon-Sun, 3-3 h; Source: AGTT/GfK: Fernsehforschung/Reporting;3) Basis (CH): German-speaking Switzerland, A 15-49 incl. guests, Mon-Sun, (2-2 h), overall signal, change in CH measurement system in 2013; Source: Mediapulse TV-Panel (Instar Analytics)
| November 3, 2016 | 22
3 41 2 Broadcasting German-speaking & Red Arrow
Audience share [in %] Q3 2016
17.2
27.5
22.7
Q3 2014
17.7
29.3
22.1
Q3 2012
17.8
26.9
21.7
Summer Olympics & soccer cup
Summer Olympics & soccer cup
PULS 4 with
strongest 9M in channel
history (4.2%)
Switzerland3)
(A 15-49)
Austria2)
(A 12-49)
Germany1)
(A 14-49)
| November 3, 2016 || November 3, 2016 |
[Q3 2016, in %][Q3 2016, in %]
24.427.5
31.6
44.7
Audience share (A 14-49)1) Share of advertising2)
We have the leading position in the German TV market
1) Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; RTL Mediengruppe since June 2016 incl. RTLplus; w/o RTL II minority; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland; 2) Gross values; Source: Nielsen Media Research/SevenOne Media, Sales Steering & Market Insights
∆+3.1%
pts
∆+13.1%
pts
23
3 41 2 Broadcasting German-speaking & Red Arrow
| November 3, 2016 || November 3, 2016 |
We have a broad and successful format portfolio
Basis: All German TV households (German-speaking), A 14-49 years, Mon-Sun, full day 3-3h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 24
EXAMPLES
Blockbuster movie Premium sitcom Lighthouse entertainment
Scripted reality Daily factualReality event
Up to
19.8%Up to
16.9%
Up to
15.4%Up to
16.7%
Up to
21.6%
3 41 2 Broadcasting German-speaking & Red Arrow
Up to
17.9%
Q3 2016 audience shares
| November 3, 2016 || November 3, 2016 |
Strong start for The Voice of Germany on both ProSieben and SAT.1
Basis: All German TV households (German-speaking), A 14-49 years, Thu/Sun, 20:15-22:30h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 25
3 41 2 Broadcasting German-speaking & Red Arrow
The Voice of Germany
Up to 23.3%
Top ratings: ProSieben with up to 23.3% and SAT.1 with up to 20.6%
New SAT.1 show Sunday successfully established
| November 3, 2016 || November 3, 2016 | Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland
We expanded our channel family addressing an attractive niche target group
Q3 audience share since launch (September 22, 2016)
Successful new launch …
0.2%A 14-49
0.4%M 40-64
… with top 3 format highlights
“Das Doku-Magazin”
up to 1.0%“Ungeklärt - Mord verjährt nicht”
up to 3.0%“Mord im Paradies”
up to 2.4%
26
3 41 2 Broadcasting German-speaking & Red Arrow
Key target group
| November 3, 2016 || November 3, 2016 |
We launched seven new TV apps on mobile and SmartTVs
271) Mobile downloads and Smart TV apps (Aug 28-Oct 29, 2016); 2) MAU on all TV channel and smart TV apps; gross values, not corrected for double usage of multiple apps (Aug 28-Sep 28, 2016); 3) Video Views (full+short+live) on all TV channel and smart TV apps (Aug 28-Oct 29, 2016)
Launched in August 2016on iOS, android and Samsung SmartTVs
Free 24/7 live stream
Free 7 day catch-up
Online exclusive bonus & newsroom content
Strengthen TV brands & increase reach
Second screen features for TV program ping-pong
First 8 weeks after launch
2.6mapps installed1)
2.2mØ monthly active users2)
10mtotal video views3)
Enable vertical thematic channels within apps and converge with commerce offerings
3 41 2 Broadcasting German-speaking & Red Arrow
| November 3, 2016 || November 3, 2016 |
Creation of compelling HbbTV consumer product
281) Potentially addressable users are defined as P7S1 viewers who have pushed the red button at least once;2) HbbTV technique enables playout of addressable TV formats like Switch-Ins and Spot Fullscreen Overlay (mid-term)
Additional monetization:Games, integrated shops, cross selling via commerce assets and advertising2)
Enhanced consumer offering:Comprehensive on-demand offering as extension of linear TV programNew info and entertainment service world around sports, news and stars
Improved product propositions
Individualized welcome screen
Brand adaptedlook and feel
Comprehensive media library Advertising
Shop
CONCEPT
3 41 2 Broadcasting German-speaking & Red Arrow
~5mpotentially
addressableusers so far1)
News & entertainment
HbbTV driver for addressable TV:Hybrid proportion allows to profile user behavior and collect data
| November 3, 2016 || November 3, 2016 |
Red Arrow is improving its KPIs …
291) Incl. pilots, new and returning productions, multiple seasons counted as separate productions (without 44 Blue); 2) Returning shows with revenues booked in Q3 2016 (without 44 Blue); 3) % returning shows as of revenues (without 44 Blue); 4) Cumulative 2010 to 2016
Number of productions1)
Number of returning shows2)
Returning shows’ rate3)
Shows in the catalogue4)
Number of international sales clients4)
160+vs. 100+ in 9M 2015
67%vs. 53% in 9M 2015
880+vs. 800+ in 9M 2015
240+vs. 225+ in 9M 2015
390+vs. 260+ in 9M 2015
3 41 2 Broadcasting German-speaking & Red Arrow
| November 3, 2016 || November 3, 2016 |
… and already represents 12% of local commissioned spending
301) Deviations due to rounding
3 41 2 Broadcasting German-speaking & Red Arrow
Red Arrow share of local commissioned content
As % of commissioned spendings
9%
+44%
9M 2016
12%
9M 2015
+4∆
%pts1)
| November 3, 2016 || November 3, 2016 |
Innovative new shows and successful travelling formats in Q3
31
3 41 2 Broadcasting German-speaking & Red Arrow
Longest running original drama series on Amazon
Emotionally charged new social experiment
Season 4 greenlighted by Amazon Video Prime
Picked up by TF1 Group and ProSiebenSat.1
Provocative dating format licensed to 10+ territories
Now commissioned by FYI in the US
New New season
Season 2 picked up by
ProSieben
| November 3, 2016 || November 3, 2016 |
Broadcasting German-speaking & Red Arrow: outlook 2016
32
3 41 2 Broadcasting German-speaking & Red Arrow
Continue to strengthen core channels
Develop innovative multi-channel consumer offerings targeting Millennials
Leverage TV Germany - Red Arrow relationship for content creation
Launch new thematic magazines, windows and channels2
3
4
1
| November 3, 2016 |
The power of television
November 3, 2016
Broadcasting German-speakingAd Market PerformanceThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
Positive TV ad performance
341) Source: Nielsen Media Research; Note: Gross figures excl. YouTube and Facebook
Broadcasting German-speaking – Ad Market Performance3 41 2
Slight growth of P7S1 German-speaking TV advertising revenues in Q3
Continued increase of TV share in media mix1)
Continued positive pricing development
Growing number of addressable TV campaigns
| November 3, 2016 || November 3, 2016 |
Stable to slightly declining gross ad shares in Q3 2016
35Basis: Jul–Sep 2016; Source: Nielsen Media Research/Media Focus
Broadcasting German-speaking – Ad Market Performance3 41 2
Switzerland
Austria
Germany
28.5%
45.5%
37.9%
ProSiebenSat.1 gross TV ad market share[in %]
24.8%
44.7%
37.9%
Q3 2015Q3 2016
| November 3, 2016 || November 3, 2016 |
[Q3 2016, in %]
3.3
31.6
44.7
Public broadcasters
Share of advertising
We maintain our leading position in the German market
36Gross values; Source: Nielsen/SevenOne Media, Sales Steering & Market Insights
3 41 2 Broadcasting German-speaking – Ad Market Performance
| November 3, 2016 || November 3, 2016 |
CPT increase of all ProSiebenSat.1 core channels in first nine months
37CPT = Cost Per Thousand; Basis: All TV households in Germany (GER+EU/German-speaking); A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/SevenOne Media/Pricing & Media Strategy
Broadcasting German-speaking – Ad Market Performance3 41 2
9.08.0 7.7 7.2
5.1
Gross CPT growth[9M 2016 vs. 9M 2015; in %]
| November 3, 2016 || November 3, 2016 |
Innovation leader in HbbTV-enabled addressable TV advertising
38
Broadcasting German-speaking – Ad Market Performance3 41 2
Universal Pictures
Opel
Eurowings
Burger King
Mobilcom Debitel
Hyundai
Borco
Peugeot
Ferrero
60campaigns
42 clients9M 2016
SwitchIn XXL
SwitchIn 27 campaigns
22 clients9M 2015
Spot overlay
| November 3, 2016 || November 3, 2016 |
TV continues to benefit at the expense of other media
39Source: Nielsen Media Research; Online excl. search, affiliate and others not reporting their bookings to Nielsen (e.g. YouTube, Facebook)
Broadcasting German-speaking – Ad Market Performance3 41 2
Outdoor, Cinema
Magazines
Newspapers
Radio
TV
Total
Online
-0.7%pts
-0.7%pts
+1.0%pts
100.0%
46.8%
11.1%
6.1%
16.2%
12.3%
7.5%
Share of segment Change in media mix
+0.6%pts
+0.1%pts
-0.3%pts
Gross ad spendings, Germany[Q3 2016 vs. Q3 2015; in % and %pts]
| November 3, 2016 || November 3, 2016 |
6 out of 10 biggest industries increased TV budgets
40Source: Nielsen Media Research; Excl. Media & Publishing and Other Advertising
Broadcasting German-speaking – Ad Market Performance3 41 2
451
431419
356199
185
160146
137
124
3.241
13.9%
13.3%12.9%
11.0%6.2%
5.7%
4.9%4.5%
4.2%
3.8%
+6.8%
+16.9%+14.6%
+18.1%-27.5%
-0.0%+13.7%
+17.4%
+2.8%pts+0.9%pts
-0.3%pts-3.3%pts
+3.6%pts
+2.7%pts+1.0%pts
+0.4%pts
100.0% +6.9% +1.0%pts
in EUR m Share Δ Δ TV in media mix210
29
62
53
55
-75
-1
0
18
20
-12
in EUR m
Detergents
Finance
Beverages
Motor Vehicles
Food
Business Services
Pharmacy
Telecommunication
Cosmetics & ToiletriesTrade & Shipment
Total+4.5%pts
-0.5%
-8.8%
+3.3%pts
Gross TV ad spendings of top 10 TV industries, Germany[Q3 2016 vs. Q3 2015; in EUR m; % and %pts]
| November 3, 2016 || November 3, 2016 |
German TV advertising market expected to grow 2% plus
41Source: ZAW (2010-2015); ProSiebenSat.1 estimate, 2016E
Broadcasting German-speaking – Ad Market Performance3 41 2
3%
4%
2%
1%1%
2011 20142012 2013 2015 2016E
+2% plus
Annual net TV ad market growth rate
++
+
+
+
German net TV ad market growth
| November 3, 2016 || November 3, 2016 | 42Source: Warc International Ad Forecast 2016 (August 2016); ZenithOptimedia Advertising Expenditure Forecasts (September 2016); Magna Global (Broadcast TV, June 2016); SevenOne Media own estimate
Broadcasting German-speaking – Ad Market Performance3 41 2
+3.7% +3.0%
ProSiebenSat.1internal market estimate
+4.6%German net TV ad market estimates 2016
(previously +2-3%)
+2% plus
We assume more conservative TV ad market growth as industry analysts
| November 3, 2016 || November 3, 2016 |
Macro indicators signal economic improvement after Brexit referendum
43Source: Bloomberg
Markit German Services PMIIFO Business Expectations Index
Broadcasting German-speaking – Ad Market Performance3 41 2
YTD 2016YTD 2016
48
49
50
51
52
53
54
55
56
Jan 2016 Apr 2016 Jul 2016 Oct 2016
Markit German Services PMI
94
96
98
100
102
104
106
108
Jan 2016 Apr 2016 Jul 2016 Oct 2016
IFO Business Expectations Index
Brexit referendum: 06/26/2016
Brexit referendum: 06/26/2016
| November 3, 2016 || November 3, 2016 |
Sales outlook 2016
44
Broadcasting German-speaking – Ad Market Performance3 41 2
German net TV ad market growth of +2% plus in 2016
Continued increase of TV share in media mix
Further increase of CPTs
P7S1 to grow slightly below positive net TV ad market2
3
4
1
| November 3, 2016 |
The power of television
November 3, 2016
Broadcasting German-speaking –DistributionThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
Dynamic increase of HD subscriptions in Q3 2016
46Note: HD Free-to-air subscribers Germany shown, paying subscriber figures as reported by platform partners (EoP, subject to subsequent adjustments by platform partners)
HD subscriber development [in m]
Broadcasting German-speaking – Distribution3 41 2
CMD target 2018
Q3 2016
9.2
6.9
Q3 2015
6.0
Q3 2014
5.1
Q3 2013
3.9
Q3 2012
2.3
2.3
+0.9m vs.
Q3 2015
+16%
| Page 47| November 3, 2016 |
New and extended deals further strengthen Distribution business
471) Incl. all P7S1 FTA and Pay TV channels except ProSieben Fun
3 41 2 Broadcasting German-speaking – Distribution
All P7S1 FTA channels available on the new eXaring OTT platform
New partner
Long-term contract extension for the distribution of all P7S1 FTA and Pay TV channels including comprehensive mobile coverage and new rights features (i.e. nPVR and Instant Restart)
Contract extension
Long-term contract extension for the successful Unitymedia/ maxdome bundling
Contract extension
Prolongation and extension for the distribution of P7S1 FTA & Pay TV channels1) in Austria via DTH
Contract extension
| November 3, 2016 |
The power of television
November 3, 2016
Digital EntertainmentThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
We further expanded and strengthened our portfolio
49
3 41 2 Digital Entertainment
New VoD platform Quazer merged with U.S. based Pluto.tv
Studio71 further expanded and internationalized
maxdome’s top 3 position strengthened with new distribution deals
Content marketplace glomex launched
Seven TV channel apps launched
| November 3, 2016 || November 3, 2016 |
Digital Entertainment1) continues to grow
501) Without Games, as deconsolidated Q2 2016 (EUR 12m in Q3 2015)
3 41 2 Digital Entertainment
Revenues[Q3 2016]
Revenue growth (%)[Q3 2016 vs. Q3 2015]
Revenue growth[Q3 2016 vs. Q3 2015]
Adjacent
-39%
EUR
-5m
EUR
8m
PayVoD
+21%
EUR
+4m
EUR
21m
AdVoD
+82%
EUR
+32m
EUR
70m
| Page 51| November 3, 2016 |
Our German AdVoD business grows strongly
511) P7S1 AdVoD business, external view, incl. own and operated platforms, Studio71 (GER only), mandates, digital out-of-home and AdTech; P7S1 estimate of net video ad market growth: Total incl. YT/FB +30-40%; 2) Mobile downloads and Smart TV apps, Source: Internal data; 3) Source: Internal data Q3 2016 vs. PY (GER only, excl. US)
2.6mapps installed
within 8 weeks2)
+68%video viewsin Germany3)
Launch of seven TV channel apps
Multi-channel network
3 41 2 Digital Entertainment
ProSiebenSat.1 AdVoD revenues, Germany1)
[in EURm]
Q3 2015 Q3 2016
+29%
| Page 52| November 3, 2016 |
Quazer was developed for an attractive market position …
52Note: Non-exhaustive overview; 1) CAGR for 2015-2018 based on P7S1 estimation
Fict
iona
l vid
eoFa
ctua
l vid
eo
On-Demand/Lean-Forward Lean-Back
Quazer follows the vision of creating TV-like experiences in the fast growing factual video segment
Innovative lean-back entertainment close to todays linear TV-experience
Innovative curation of niche channels
Unique mix of TV programs, web programs and later original content
>60%market
growth1)
>40%market
growth1)
New
>60 channels
3 41 2 Digital Entertainment
| Page 53| November 3, 2016 |
… and is now merged into Pluto.tv to participate in international growth
53
New linear lean back VoD watching
~14%P7S1 stake in
combined business
>5m monthly
active users (MAU) in the U.S.
>10bn total viewing
minutes since launch
We have invested a strategic minority stake in U.S. based Pluto.tv and merged our German linear VoDplatform business Quazer
Pluto.tv is a new generation of online linear stream video and best positioned in U.S. linear VoD market
Together with other strategic investors, we plan to further grow Pluto.tv and Quazer and distribute relevant P7S1 content
3 41 2 Digital Entertainment
| Page 54| November 3, 2016 |
Studio71 remains market leader, with strong growth in VV …
541) Basis: Before CDS acquisition pro forma incl. CDS; Source: YouTube CMS, own calculations, quarterly VVs; 2) ComScore YouTube Partners Report August 2016 (content views, desktop only, incl. music MCNs, Maker not listed), Studio71 GER and Studio71 US combined; 3) Monthly videoviews, last 30 days July 2016, based on SocialBlade “Top 250 YouTube Networks” report (incl. music MCNs)
Studio71 global video views1)
[in bn]
Studio71 TubeOne Networks
VEVOBroadbandTV
Warner Music
3 41 2 Digital Entertainment
Strong growth of VV continued #1 MCN in Germany2)
Global #4 MCN³)
>420msubscribers
2.02.7
3.8 4.4 4.9 5.5
7.4
9.4
12.4
14.616.2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
| Page 55| November 3, 2016 |
… and an increasing monetization of our YouTube channels
55
3 41 2 Digital Entertainment
Average monthly revenue per YouTube channel
+110%y-o-y
growth
[in EUR m]
Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016E
| November 3, 2016 || November 3, 2016 |
In addition, we take actions for further global expansion
561) YTD August 2016
3 41 2 Digital Entertainment
Signing of international superstar The Rock
Entering Spanish-speaking market
Executing bigger productions
>1.3m subscribers
after 5 months
Among top 10
channels in Spain
• Social media star with more than 130m followers on all platforms
• #6 most subscribed channel on YouTube within first months
First major steps in Spanish speaking market
• Signing of one of the biggest Spanish creators Jordi Wild
Release in US-Theatres and iTunes Launch of ‘Maximum Ride’
• Further pushing of new long form formats and bigger projects
>100% growth
in global IP business1)
| Page 57| November 3, 2016 |
We have just launched glomex, a global content marketplace
57
Media Exchange Service:Increasing video reach and revenue
Content owners Publishersglomex Media Exchange Service
Open, international B2B marketplace
for premium video content
Media Delivery Service:Reducing video delivery cost
Video Value Service:Unlocking blocked ad revenue
3 41 2 Digital Entertainment
21customers
alreadysigned
>100kvideos
| Page 58| November 3, 2016 |
maxdome protects its top 3 position as local partner of choice
581) Q3 2016 vs. Q3 2015; 2) End of period Q3 2016 vs. end of period Q3 2015; 3) Based on subscribers; Sources: forsa, GfK, Nielsen, ComScore & Phaydon Research based on end of Q3 2016
+21%
PayVodrevenues1)
Top 3
Market position3)
+48%
SVoDsubscribers2)
maxdome subscriber base growing above market YTD 20163) maxdome is the local partner of choice
3 41 2 Digital Entertainment
New
| Page 59| November 3, 2016 |
Extension of long-term cable distribution partnership
59
3 41 2 Digital Entertainment
| Page 60| November 3, 2016 |
Starwatch increases own music and event portfolio
601) Subscribers/followers/fans on YouTube, Spotify, Facebook, Instagram and Twitter
3 41 2 Digital Entertainment
First release of YouTube star Nicole Cross with
360° label artist contract
Event co-production Bodyguard in line with expectations
>900kSocial Media
fans1)
>350ksold tickets
Strong music track record in 2016 so far
2119
Q3 2015 YTD Q3 2016 YTD
GOLD and PLATINUM Awards
+2
| November 3, 2016 |
The power of television
November 3, 2016
Digital Ventures & CommerceThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
Digital Ventures & Commerce key highlights in Q3
62
Dynamic and profitable growth
Four new key investments
Continuous build up of our Lifestyle Commerce Ecosystem
SevenVentures with new high-profile deals
3 41 2
Strong performance of our key assets
Digital Ventures & Commerce
| November 3, 2016 || November 3, 2016 |
Digital Ventures & Commerce sustains its dynamic growth
63
Digital Ventures & Commerce3 41 2
External revenues Entity rec. EBITDA
181
125
+44%
Q3 2016Q3 2015
40
35
+14%
Q3 2016Q3 2015
[in EUR m] [in EUR m]+44% +14%
| November 3, 2016 || November 3, 2016 |
We continue to successfully expand our strong portfolio
1) Strategic minority investment, closing envisaged in Q4 2016; 2) Stake raised from 29% to 49.9%, closing envisaged in Q4 2016
Digital Ventures & Commerce
Online Travel Online Price Comparison Online Dating Lifestyle
Commerce
64
7NXT
3 41 2
| November 3, 2016 || November 3, 2016 |
We invested in the fast growing online comparison portal KäuferPortal
1) Closing envisaged in Q4 2016
Digital Ventures & Commerce
FinanceHome Service
65
Indoor Outdoor Real estate Pension Plan Insurance
Asset-light business with perfect fit to our investment strategy complementing Verivox with high-value products & services
KäuferPortal is the leading specialized online marketplace for complex investment goods and services
3 41 2
buyerinquiriesper year
>1.2m
42%P7S1
stake1)
| November 3, 2016 || November 3, 2016 |
Parship as lighthouse investment in attractive Matchmaking segment
661) Germany; 2) Core market Germany, 2012-2015; Source: P7S1 analysis, Singleboersenvergleich market study (reported revenues for Parshipand ElitePartner, estimate for eDarling)
Digital Ventures & Commerce3 41 2
Attractive market with CAGR of >+10%2), high single-digit growth going forward
High-margin and asset-light consumer subscription business
Opportunity to increase rec. EBITDA margin to25-30%, up from 21% (2016E)
Considerable TV advertising and non-TV synergies expected
Notable cross-selling potential with lifestyle commerce assets
Investment rationaleKey players in Matchmaking segment1)
#1
#3
Continuous leadership in Matchmaking since 2006
#2
>80%share2)
| November 3, 2016 || November 3, 2016 |
Windstar is our first cornerstone mass retail OTC brand
67
Digital Ventures & Commerce3 41 2
Unique provider of care and nutrition products
Investment rationale
Strong foundation in growing TV-affine Health & Wellbeing market
Low brand awareness offering high potential through TV media
Asset-light business model due to outsourced production
High cash conversion and notable margin upside potential
High cross-selling potential with lifestyle commerce
Additional growth potential through online distribution
| November 3, 2016 || November 3, 2016 |
We increased our stake in health & wellbeing e-commerce player Vitafy
1) Closing envisaged in Q4 2016; 2) German Fitness, Weight loss, Nutrition, Health & Care e-commerce market 2016-2020; Source: IfD, Statista, Euromonitor
Digital Ventures & Commerce
68
Vitafy as strategic anchor investment to further push Lifestyle Commerce Ecosystem synergies
Strong overall marketCAGR of >+10% anticipated2)
Attractive cross-selling synergies with P7S1 assets
#2#2 e-commerce player in health & wellbeing market focusing on healthy nutrition
3 41 2
49.9% P7S1
stake1)
| November 3, 2016 || November 3, 2016 |
Successful growth in our Online Travel vertical driven by multiple assets
691) Closing in November 2015
Digital Ventures & Commerce3 41 2
Revenue driversExternal revenues
92
65
+42%
Q3 2015 Q3 2016
[in EUR m]etraveli continued growth in core and new markets as well as through expansion of add-on product sales
Online package tour sales of weg.de returned to growth well ahead of market
Consolidation of etraveli1) with meaningful impact on Q3 revenues
+42%
| November 3, 2016 || November 3, 2016 |
etraveli is delivering strong revenue growth in existing and new markets
1) USA, Canada, Taiwan, China and India; 2) Revenues from non-ticket sources, such as baggage fees and on-board food and services
Digital Ventures & Commerce
Effective scale up of operations
Successful low cost internationalization
Increased ancillary revenues2)
70
5new countrieslaunched in
Q31)
3 41 2
New in Q3 Existing
etraveli’s international operations
| November 3, 2016 || November 3, 2016 |
Our Online Price Comparison vertical more than doubled its revenues
71
Digital Ventures & Commerce3 41 2
External revenues
23
9
+172%
Q3 2016Q3 2015
[in EUR m] >+100%
Revenue drivers
Successful growth in energy pricecomparison segment despite seasonallylow switching activity in Q3
Significant conversion rate improvements and attractive product portfolio driving growth of telco price comparison segment
Revenue growth benefiting from remaining consolidation effects of Verivox acquisition
| November 3, 2016 || November 3, 2016 |
Verivox new subscription based contractoptimization service is creating lock-in-effects and thus boosts customer lifetime values
Verivox is further strategically expanding its sales channels & offerings
72
Digital Ventures & Commerce
Verivox flagship store
3 41 2
Verivox prime
Verivox opens first offline store in Mannheim to broaden its target group and strengthen brand trust
Opened in 9/16
Launchedin 10/16
| November 3, 2016 || November 3, 2016 |
Flaconi, Amorelie and Stylight boost Lifestyle Commerce revenues
731) Closing in July 2016
Digital Ventures & Commerce3 41 2
37
18
+100%
Q3 2015 Q3 2016
[in EUR m] +100%Flaconi accomplished strong growth with improved conversion rates and widened assortment
Positive impact on revenues from first-time consolidation of Stylight1)
External revenues Revenue drivers
Amorelie with dynamic revenue growth driven by more than doubled international revenues
| November 3, 2016 || November 3, 2016 |
Food & Functional nutrition
Health,Wellbeing & OTC
Beauty & Accessories
Fashion
Engagement platforms
Lead Gen platforms
Omnichannelsales approach
TV reach
Physical goods
Prod
ucts
Branded formats
We continue to build our Lifestyle Commerce Ecosystem
741) New and previous formats; 2) Stake raised from 29% to 49.9%, closing envisaged in Q4 2016; 3) Private label of Vitafy; 4) Minority shareholding
Digital Ventures & Commerce
Lifestyle Commerce verticals
TVPl
atfo
rms
4)
Selected examples
Lifestyle Commerce Ecosystem
3)
3 41 2
7NXT 7NXT
Selected examples1)
| November 3, 2016 || November 3, 2016 |
Stylight is increasing revenues through internationalization & synergies
Digital Ventures & Commerce
Lead Generation platform
Strong revenue growth of Home & Living vertical driven by internationalization to nine further countries
Realization of synergies via ecosystem integration started (e.g. integration of Flaconi)
Deeper interlinkage of content & commerce in Fashion vertical drives advertising income
Existing product verticals
Fashion Shoes Home & Living
Acces-sories
75
3 41 2
| November 3, 2016 || November 3, 2016 |
ABOUT YOU offers personalized fashion discovery and has demonstrated fast growth since its start in 2013
Clark is an insurance management service with the potential to become a new category leader offering
attractive synergies with Verivox
SevenVentures with new high-profile M4E deals in Q3
76Note: Selection
Digital Ventures & Commerce3 41 2
| November 3, 2016 || November 3, 2016 |
Digital Ventures & Commerce: Outlook
Digital Ventures & Commerce
77
3 41 2
Deliver double-digit revenue growth in FY 2016
Continue bolt-on M&A and further drive organic growth
Further internationalize our digital verticals
| November 3, 2016 |
The power of television
November 3, 2016
Q3 2016 – Summary & OutlookThomas Ebeling Chief Executive Officer
| November 3, 2016 || November 3, 2016 |
We confirm our positive full-year guidance
79
3 41 2 Q3 – Outlook
Group revenue growth to exceed +15%
German TV ad market to grow 2% plus in 2016
Digital Entertainment and Digital Ventures & Commerce with double-digit revenue growth
Recurring EBITDA and underlying net income above prior year
P7S1 TV ad revenue growth slightly below market
| November 3, 2016 || November 3, 2016 |
Disclaimer
80
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 orProSiebenSat.1 Group's financial position, business strategy, plans and objectives of management and futureoperations. Such forward-looking statements involve known and unknown risks, uncertainties and other importantfactors that could cause the actual results, performance or achievements of ProSiebenSat.1 or ProSiebenSat.1Group to be materially different from future results, performance or achievements expressed or implied by suchforward-looking statements. These forward-looking statements speak only as of the date of this presentation andare based on numerous assumptions which may or may not prove to be correct.
No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to the fairness,completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. Theinformation in this presentation is subject to change without notice, it may be incomplete or condensed, and itmay not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1undertakes no obligation to publicly update or revise any forward-looking statements or other information statedherein, whether as a result of new information, future events or otherwise.
| November 3, 2016 || November 3, 2016 |