roundtable presentations digital commerce platforms · 12/6/2017 · 1) market = singles aged...

Capital Markets Day – December 6, 2017

ROUNDTABLE PRESENTATIONS

DIGITAL COMMERCE PLATFORMSClaas van Delden, Mark Klimmek, Dr. Florian Tappeiner

WE’VE BUILT MULTIPLE LEADING COMMERCE PLATFORMS

1) Germany, Switzerland and Austria 2) Over-the-counter (prescription-free medical products) 66

Selection only

#2 cross-vertical Online

Comparison Portal

#1 match-making

platform in GSA1) region

Germany’s leader in

gift vouchers

Leading German OTC2)

platformin mass

retail

Fastest growing online

beauty platform

Only lifestyle brand in sensual wellness

DEEP DIVE: VERIVOX

67

J. Schweizermydays Group

Parship Elite Group

Verivox

2

1

3

Windstar4

Flaconi5

#2 cross-vertical Online Price Comparison portal

Majority investment: 2015

P7S1 stake: 79%

Other shareholders: Oakley Capital, founders, management

Management team:

Chris Öhlund | CEO

Christoph Jennen | CFO

Klaus Hufnagel | COOAmorelie6

VERIVOX IN NUMBERS

1) Excluding Preis24 68

Market position in GSA region

#2

EBITDA CAGR 2014–2017E1)

>20%

Customers served since 1998

>8m

1

VERIVOX HELPS CONSUMERS SAVE MONEY

1) Customer Acquisition Cost 69

Business model

EXAMPLE: ENERGY VERTICAL

2

Verivox compares tariffs of providers

5

Verivox sends contract data to provider

6

Provider pays commission to Verivox

1

Consumer enters product requirements

3

Consumer selects best tariff

4

Consumer finalizes and transmits

application

Consumer

Motivation – Compare prices to save time and

money

Compares >29,000 tariffs of 1,000+ providers for transparent market overview

Motivation – Generate revenues through commissions, advertising, and B2B services

Provider

Motivation – Success-based, low-cost sales

channel (~40% savings in CAC1))

1

VERIVOX WITH A STRONG CONSUMER PROPOSITION

1) Estimated savings vs. assumed previous contract expenses 70

>2.0bn

“YOUR TARIFF EXPERTS. COMPARE WITH US &

SAVE.”

EXPERIENCED RELIABLE TRANSPARENT

AWARD-WINNING TRUSTED CONSUMER

BRAND

64x HONOREDSINCE 2008

EUROS SAVED BY CONSUMERS

USING VERIVOX1)

1

German Online Price Comparison (OPC) market [2016 and 2021E by segment]

Market in 2021E: EUR ~1.0bn

GERMAN OPC MARKET TO GROW SIGNIFICANTLY

1) EUR >1m revenuesSource: Bundesnetzagentur; Deutsche Bundesbank; market intelligence

71

BankingTelCo InsuranceEnergy

Market in 2016: EUR ~0.6bn

Other

1

Active1) since: >10 yrs >3 yrs >2 yrs>16 yrs

[in EUR, 2015]

UK CONFIRMING VERIVOX’ SIGNIFICANT GROWTH POTENTIAL

1) Player 5: uswitch 2) Energiewirtschaftsgesetz – EnWG, 2005 3) Estimate 4) Increasing to EUR 1.5-2.0 in past two yearsSource: P7S1 market model; Destatis; OC&C; Roland Berger; Greenhill; market intelligence

72

OPC REVENUES PER HOUSEHOLDMARKET COMPARISON ENERGY:

UK VS. GERMANY

34

15

x 2.3

# of market players with EUR >80m revenues: 2

# of market players with EUR >80m

revenues: 41) Year of deregulation

Average spent on TV media last 5 years (p.a.)3)

Growth of number of switchers in past 5 years

Switcher in % of all households

1999

EUR ~4 per household

~ +20%

~17%

20052)

EUR ~14)

per household

~ +25%

~11%

Traffic and frequency of usage are key drivers for future growth

1

STRATEGIC ACQUISITIONS TO DRIVE MONETIZATION

73

LEADING MULTI-BANKING APP

#2 CROSS-VERTICAL ONLINE COMPARISON

PORTAL

GERMANY’S LEADING ONLINE CANCELLATION

SERVICE

“Drive frequency”“Drive monetization”“Increase traffic”

>5m cancellations p.a.

1

OPPORTUNITY TO BUILD FIRST PAN-EUROPEAN OPC

1) Share of purchases using OPC websitesSource: Google consumer barometer survey of internet users 2014/15: >1,500 people surveyed about their last purchase of car insurance

74

Verivox Case Study

Several M&A targets to

become available in upcoming 24

months

1

OPC PENETRATION BY COUNTRY1)

[in %]

242526

33

41

52

AND WE KNOW HOW TO SCALE OPC BUSINESSES

1) Exemplary in Energy vertical, extrapolated for 2017 based on YTD growth 2) Property & Casualty 75

1

BRAND AWARENESS

+63%

Mar 2017Dec 2014

[indexed, 2014 = 100%]

CONVERSION RATE1)

Energy: Entered SME and industrial segment

TelCo: Acquired Preis24 to strengthen TelCo vertical

Insurance: Built own P&C2)

calculators for products beyond cars

International: Launched Verivox Switzerland

DIVERSIFICATION

+37%

20152014 2017E2016

VERIVOX FIRST OPC SUPPLIER OFFERING TARIFF COMPARISON VIA VOICE WITH AMAZON’S ALEXA

DEEP DIVE: PARSHIP ELITE GROUP (PEG)

76


Parship Elite Group

Verivox

2

1

3

Windstar4

Flaconi5

#1 matchmaking platform in GSA


P7S1 stake: 50% +1

Other shareholders: Oakley Capital, management

Management team:

Tim Schiffers | CEO

Henning Rönneberg | COO

Marcel Schachtel | CTOAmorelie6

PARSHIP ELITE GROUP IN NUMBERS

77

Market position in GSA

#1

EBITDA CAGR 2014-2017E

45%

Babies born to Parship &

ElitePartner couples

>100k

2

VIRTUOUS CIRCLE HELPS EXPAND MARKET LEADERSHIP

1) Germany, Switzerland and Austria 78

Business model

2

Strong brands

Highest share of ad and efficient marketing

Largest database of users in GSA1)

Optimized conversion of online (brand) traffic

Best in class user monetization

Combined with

Leads to

Enables

As basis for

OUR TWO COMPLEMENTARY STRONG BRANDS …

1) Based on Parship customer survey, 2016 79

The biggest and most experienced matchmaking service

The premium matchmaker for academics and high-class singles

2

1)

[top of mind, Germany]

… HAVE A SUPERIOR BRAND POSITIONING …

Source: Kantar TNS Brand Awareness Tracking Online Dating 80

2017201420102009 201320122011

2

ONLINE DATING BRAND AWARENESS

1) In 2016, GSA 81

2

Price High Free

Sex/affair

Flirt/date

Relation-ship

Intention of members

Casual dating

Online matchmaking (OMM)

Single platforms

Market Size1):

EUR >250m

Highest willingness to pay

Lowest substitution risk from free players

Highest customer lifetime value

… AND ARE LEADING IN MOST ATTRACTIVE SEGMENT ONLINE MATCH MAKING

GERMAN MARKET YET WITH STRONG UPSIDE POTENTIAL

1) Market = Singles aged 25-55 (~80% of Parship users), at least ‘weiterführende Schule/ Mittlere Reife’ (~90% of Parship users), looking for a serious relationship 2) Only French & German-speaking Switzerland consideredSource: EY consumer survey 2016; management information; JP Morgan

82

2

[in % of respondents, 2016]

ONLINE MATCHMAKING MARKET PENETRATION1)

[Avg. marketing spend per capita 2015-2017E, in EUR]

PEG MARKETING SPEND

21

15

x2272) 1.5

0.7

x3

0.5

Note: Statements may vary due to roundingSource: EY consumer survey 2016; management information/analysis

83

2

[% of respondents, Germany, 2016]

ADOPTION OF ONLINE DATING BY AGE GROUP

[% share of age group among total subs,Germany]

PARSHIP FIRST-TIME SUBSCRIBERS BY AGE GROUP

66

1213

15

19

18-29 70+60-6950-5940-4930-39

Age group

39

2012

35-44

45+

26

36

18-34

2016

30

40

30

17%

16%

28%

CAGR ’12-’16

>50% mobile

registrations

MILLENIALS TO DRIVE ONLINE MATCH MAKING GROWTH IN THE FUTURE

UNIQUE INCREASE IN CUSTOMER MONETIZATION

1) Customer Lifetime Value in revenue 2) Cost Per New CustomerSource: Management information/analysis

84

2

Parship CLV1) and CPNC2) in GSA[indexed, 2012 = 100]

169159

151139

118

100

129120113111109

100

2016 2017E201520142012 2013 CLV CPNC

CLV: 11%

CPNC: 5%

CAGR ’12-’17E

DEEP DIVE: JOCHEN SCHWEIZER MYDAYS GROUP

1) Shares held through Jochen Schweizer Beteiligungs GmbHNote: Majority investment in mydays with subsequent acquisition of Jochen Schweizer in 2017

85


Parship Elite Group

Verivox

2

1

3

Windstar4

Flaconi5

Germany’s leader in gift vouchers

Majority investment: 2013 (mydays) & 2017 (J. Schweizer)

P7S1 stake: 90%

Other shareholders: Mr. Jochen Schweizer1)

Management team:

Fabian Stich | CEO

Florian Herschke | CFO

Lars Brinkmann | CTOAmorelie6

JOCHEN SCHWEIZER MYDAYS GROUP IN NUMBERS

1) CAGR based on normalized EBITDA 86


#1

EBITDA CAGR1)

2015–2017E

>50%

Contracted providers

>3,000

3

Want to find the right experience/gift easily from

large set of options

CONNECTING CONSUMERS WITH EXPERIENCE PROVIDERS

87

Business model

3

CUSTOMERS PROVIDERS

Fragmented providerstructure with choice of

>4,300 experiences

THEMED SHORT TRIPS

CULINARY EXPERIENCES

SPORTS & ACTION

EXPERIENCE BOXES

TWO BRANDS WITH COMPLEMENTARY POSITIONING

88

Two brand strategy

3

Leading in emotional experiences Leading in adrenalin experiences

Acquisition closed in October 2017

“Soft & emotional” “Strong & rational”

Experience specialist market [by commission and segments in Germany, 2016]

LEADING THE EXPERIENCE SPECIALIST MARKET

Source: Euromonitor 89

Wellness & lifestyle

Sports & action

Music & sport events

>3%

Others

>23%

>49%>35%

Culinary experiences

>20%

Themed short trips

3

Market size:EUR ~420m

SIGNIFICANT SYNERGIES FROM MERGER

90

3

OperationsRevenue upside

Performance marketing

Efficiency gains

Revenue split by distribution channel[in %, 2016]

STRONG OMNICHANNEL DISTRIBUTION FOOTPRINT

1) mydays listed in >7,000 retail POS 91

3

45 own retail shops

Listed in >5,000 retail POS

Online

Offline

100%

>151)

>35

DEEP DIVE: WINDSTAR

1) Not part of management 92


Parship Elite Group

Verivox

2

1

3

Windstar4

Flaconi5

Leading German OTC platform in mass retail


P7S1 stake: 92%

Other shareholders: Founders1)

Management team:

Thomas Weiß | CEO

Wolfgang Hahn | Managing director

Dr. Andreas Bender | Managing directorAmorelie6

WINDSTAR IN NUMBERS

1) Market position in branded and private label mass market segments 2) >50 brands in innovation pipeline 93

Market position in GSA region1)

#2

Revenue CAGR 2015–2017E

12%

# of active brands in portfolio2)

>5

4

PRIVATELABEL (PL) OTC

BRANDEDOTC

LEADING GERMAN OTC PLATFORM IN MASS RETAIL

94

Business model

Contract manufacturer

Drugstores/ grocery

Consumers

WINDSTAR (WSM) AS CATALYST FOR THE NUCOM GROUP’S OMNICHANNEL APPROACH

4

MAJOR TRENDS FUELING CONTINUED GROWTH IN OTC

95

Growing interest in

self-medication

Overall drugstore

outlet expansion

Trend towards

prevention and wellness

Increasing offline to

online shift

Aging population

Channel dynamics Consumer dynamics

4

HIGHLY FRAGMANTED & LARGE MASS MARKET SEGMENTS

96Source: Desk research; dm-Extranet; management information/analysis; Nielsen panel; BAH report 2014; Nielsen Promarcon report

Private label mass market [in % of total market, Germany, 2016]

Branded mass market [in % of total market, Germany, 2016]

Other69

16

153

Other

5

1418

11

215

22

Total market: EUR ~360m Total market: EUR ~640m

4

DRUGSTORE OUTLET EXPANSION IN GERMANY– EXAMPLE: DM –

[# of stores, Germany]

OUTLET EXPANSION SUPPORTING UNDERLYING GROWTH

Source: Desk research; management information/analysis; IPSOS survey 04/2017 97

936

2016

1,825

2013

1,480+8% p.a.

1,185

20102007

4

TV AS KEY BRAND GROWTH LEVER FOR WINDSTAR

Source: IPSOS survey 04/2017 98

[TV impact, example SOS, 04/2017]

Brand awareness

+15%Purchase intent

+23%

SOS TV CAMPAIGN IN 2017 PROVEN TV IMPACT

4

Revenue growth by brand[growth in %, 2014-16]

SOS BRAND OUTPERFORMS ITS OTC COMPETITORS …

Source: Nielsen 99

-10

8

3032

4046

66

4

No revenue sharing and high customer ownership

… AND HAS ESTABLISHED A STRONG ONLINE PRESENCE

Existing online presence and easy customer access

Existing relationshipswith retailers

Largest online retailer and full service offering

100

4

DEEP DIVE: FLACONI

101


Parship Elite Group

Verivox

2

1

3

Windstar4

Flaconi5

Fastest growing online beauty platform


P7S1 stake: 100%

Other shareholders: -

Management team:

Dr. Steffen Christ | COO

Thomas Faschian | CCO

Kathrin Nusser | CFOAmorelie6

FLACONI IN NUMBERS

Note: Market position based on eCommerce revenues in Germany 102

Market position in GER

#2

Revenue CAGR 2014-2017E

103%

# of brand listings

>450

5

FLACONI IS A LEADING ONLINE BEAUTY DESTINATION

1) Selection only 103

Business model

CUSTOMERS BRANDS1)

FRAGRANCES

COLOR COSMETICS

SKINCARE

BEAUTY ACCESSORIES

ONLINE

FRAGRANCES

5

STRONG OFFLINE-TO-ONLINE SHIFT DRIVING GROWTH

Source: Institut für Handelsforschung 104

Addressable online market[Germany, in EUR bn]

Beauty & Care market[Germany, in EUR bn]

Online market mainly premium

Premium is the addressable market for Flaconi

2016

Offline 12.7

Online1.2

13.9

9% 17%Online

penetration

1.2

2.4

2016 2020E

+19% p.a.

5

Share of repeat customers[by cohorts, in %]

HISTORIC COHORTS SUBSTANTIATE GROWTH AMBITIONS

105

Year 3 after initial purchase


+14

+18+20


2014 201520132012

More recent cohorts with systematically higher

repurchasing rates

Year of first purchase:

Strong cohort loyalty after year 1

5

PREMIUM BRANDS DRIVING FLACONI’S GROWTH

1) Based on value in EUR, YTD September 2017 106

5

Development of brand listings[in numbers]

Flaconi increasingly important partner for beauty industry

Impressive fulfillment capabilities of Flaconi to optimize customer

experience

Premium wrapping for ‘Scandal!’ perfume

368

283

>450

2015

+60%

2016 2017

FUTURE POSITIONING AS BEAUTY & CARE DESTINATION

107

BEAUTYCreate the online destination for luxurious beauty products

INSPIRATIONProvide meaningful and targeted recommendations

OWN BRANDExpand influence by developing own products based on consumer dataSneak preview

5

DEEP DIVE: AMORELIE

108


Parship Elite Group

Verivox

2

1

3

Windstar4

Flaconi5

Only lifestyle brand in sensual wellness


P7S1 stake: 75%

Other shareholders: Founders

Management team:

Lea-Sophie Cramer | Founder & CEO

Sebastian Pollok | Founder & CCO

Talip Yenal | CFOAmorelie6

AMORELIE IN NUMBERS

1) Based on 2017E revenue share 109


#2

Revenue CAGR 2014-2017E

92%

Share of private label brands1)

>40%

6

AMORELIE IS A LEADING SENSUAL LIFESTYLE PLATFORM

1) Such as the ‘Adventskalender’ 2) Selection only 110

Business model

ONLINEOFFLINE RETAIL

DIGITAL PLATFORMS

DIRECT SALES

3rd PARTY BRANDS

OWNBRANDS

CUSTOMERS BRANDS2)

LOVE TOYS

LINGERIE

BODY & CARE

DISCOVERY BOXES1)

6

ONLINE MARKET EXPECTED TO GROW BY 11% PER YEAR

1) Market for sexual wellness productsSource: TrendMonitor; Globometer

111

Online market[Germany, in EUR bn]

Total addressable market1)

[by distribution channel, in EUR bn]

Online penetration expected to increase to 32% until 2020

Offline market growing at 6% p.a. providing additional source of growth

1.2

0.9

0.3

2016

Online

Offline

26% 32%Online

penetration

+11% p.a.

2020E

0.5

2016

0.3

6

[Google Trends] [organic desktop traffic, Germany]

STRONG AMORELIE BRAND WITH SUSTAINABLE TRAFFIC

Source: YouGov 2017 YTD; Similarweb July 2017 112

0

10

20

30

40

50

60

70

80

90

100

110

Eis.de AmorelieBeate Uhse

6

BRAND INTEREST ORGANIC SEARCH TOP 4 PLAYERS

24%

38%

14%

24%

Amoreliecaptures

38% of all organic search

requests

STRONG OMNICHANNEL DISTRIBUTION FOOTPRINT

113

Direct sales

>10 private label brands online

Large digital sales platforms

Listed in >2,000 retail POS

Selection only

UNIQUE OMNICHANNEL FOOTPRINT IN THE INDUSTRY – NO COMPETITOR WITH SIMILAR POSITIONING

Selection only

6

JOURNEY TO SENSUAL LIFESTYLE BRAND INITIATED

114

INTENSECreate positive & intensified experiences

SENSUALTrigger senses in a meaningful way

INDIVIDUALHighlight personality and values

HAPPYFeel the lightness & bliss of the moment

Sneak preview

6

DISCLAIMER

This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regardingProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objectivesof management and future operations. Such forward-looking statements involve known and unknownrisks, uncertainties and other important factors that could cause the actual results, performance orachievements of ProSiebenSat.1 or ProSiebenSat.1 Group to be materially different from future results,performance or achievements expressed or implied by such forward-looking statements. Theseforward-looking statements speak only as of the date of this presentation and are based on numerousassumptions which may or may not prove to be correct.

No representation or warranty, expressed or implied, is made by ProSiebenSat.1 with respect to thefairness, completeness, correctness, reasonableness or accuracy of any information and opinionscontained herein. The information in this presentation is subject to change without notice, it may beincomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 orProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise anyforward-looking statements or other information stated herein, whether as a result of new information,future events or otherwise.

roundtable presentations digital commerce platforms · 12/6/2017 · 1) market = singles aged...

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