March Company Presentation. Unterföhring. Page 1. October 15, 2015

Transcription

1 March 2016 Company Presentation Unterföhring October 15, 2015 Page 1

2 Agenda At a Glance Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales October 15, 2015 Page 2

3 ProSiebenSat.1 Group At a Glance October 15, 2015 Page 3

4 P7S1 Group leading across TV, Digital & Production Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales 1 3 #1 #1 4 Top 10 Rev EUR 2,152m 2 5 EUR 846m 1) #1 by audience share in Germany (A14-49y) and Austria (A12-49y); 2) 9M 2014 according to Nielsen Media Research; 3) Studio71 is #1 MCN in Germany; CollectiveStudio71 is top 5 globally; 4) Etraveli is the #1 flight player in the Nordics. SVoD market October 15, 2015 Page 4 Germany, according to GfK; 5) Mobile and PC games publishers in Europe, excluding direct publishing by developers, P7S1 estimates. 6 #2 Top 3 EUR 262m

5 At a Glance Major operational highlights in FY 2015 Best TV ratings performance in ten years Positive TV ad performance Landmark acquisitions for our D&A verticals Powerful US additions to Red Arrow s portfolio 2016 February 25, 2016 Page 5

6 At a Glance supporting our strong equity story of combining steady growth and attractive returns Strong earnings and cash flows supporting attractive dividends Dual approach Market leader Growth path Financial outperformance We are strongly positioned in our growing core TV market and in dynamic digital markets We maintain leading positions in the Germanspeaking TV and online video business In October 15 we have raised our 2018 revenue growth target to EUR 1.85 bn and expect to reach EUR 4.2 bn of revenues in 2018 We have delivered multi-year financial and operational outperformance October 15, 2015 Page 6

7 At a Glance We have continuously grown since 2009 [in EUR m] External Group revenues 1,921 2,051 2,199 CAGR: +9.2% 2,356 2,605 2,876 3, October Note: 15, CAGR 2015 calculated based on annual growth rates of continuing operations at the time Page 7

8 At a Glance with strong revenue and earnings performance Revenues (CAGR ) Recurring EBITDA (CAGR ) Recurring EBITDA margin (2015) Underlying net income (CAGR ) Net debt reduction ( ) Financial leverage (December 31, 2015) +9.2% +10.9% +28.4% +27.1% EUR 1.4bn 2.1x October Note: 15, CAGRs 2015 calculated based on annual growth rates of continuing operations at the time Page 8

9 At a Glance We have built a strong position in the German TV market Audience share (A14-49) 1) Share of advertising 2) [FY 2015, in %] [FY 2015, in %] %pts %pts 1) Basis: All German TV households (GER+EU), A 14-49, Mon-Sun, full day 3-3 h; RTL Mediengruppe w/o RTL II February minority; 25, Source: 2016 AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland; 2) Gross values; Source: Page 9 Nielsen / SevenOne Media, Sales Steering & Market Insights

10 At a Glance complemented by market leading digital assets Market position New FY 2015 revenue split Digital Entertainment 35.5% Ventures & Commerce 55.0% AdVoD Travel Top Top #1 3 #1 3) #1 #1 5 #1 1) #2 #1 2) #1 #1 Top 5 #2 PayVoD Games Beauty & Accessories Online Comparison Top 3 4) Top 3 5) #2 #2 Top 5 #1 #1 #1 Top 5 Adjacent 9.5% Ventures Music, Licensing, Sports #5 #1 (M4R/E) Leading German VC investor 1) Nordics; 2) Studio71 #1 MCN DE, together with CDS top 5 globally; 3) Yieldlab #1 Premium SSP in DACH; February 4) SVoD 25, market 2016 DE, according to Forsa; 5) Mobile and PC games publishers Europe, excluding direct publishing by Page 10 developers

11 At a Glance Financial milestones achieved in 2015 Record year for P7S1 in terms of revenues, recurring EBITDA and underlying net income Continued growth of core advertising business Dynamic growth in Distribution and Content Production & Global Sales Best Digital & Adjacent performance in history Effective M&A strategy successfully executed Highest total shareholder return in the European FTA broadcasting peer group, with +39% February Continuing 25, 2016 operations Page 11

12 At a Glance Key financials in FY 2015: another record year [FY 2015 vs. FY 2014, in EUR m] Revenues 3, % Recurring EBITDA % Underlying net income % February Continuing 25, 2016 operations Page 12

13 Revenue growth vs. FY At a Glance Continued dynamic growth across all three business segments Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales TV advertising Distribution Digital Entertainment Adjacent Ventures & Commerce +3.4% +20.2% +36.4% +8.1% +47.3% +4.3% +38.6% +29.7% +EUR 89.3m +EUR 235.7m +EUR 60.0m February Continuing 25, 2016 operations, external revenues Page 13

14 At a Glance Strong profits from Broadcasting and growing contribution from Digital & Adjacent and Content Production & Global Sales [in EUR m, FY 2015, prior year in parentheses] External revenues Recurring EBITDA 26.0% (21.2%) % (7.0%) Broadcasting Germanspeaking Digital & Adjacent FTEs 1 2,262 1, % (15.3%) % (2.3%) , ² Broadcasting German-speaking Digital & Adjacent 66.0% (71.7%) 2,152.1 Content Production & Global Sales % (82.9%) Content Production & Global Sales October Continuing 15, 2015 operations. 1) FTEs: average full-time equivalents Page 14 2) Group recurring EBITDA after elimination of EUR 4.0m

15 At a Glance Our business unit strategies and growth objectives Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales Strengthen and expand our leading TV position with broader reach and leverage synergies with digital Build leading local and international digital commerce verticals & entertainment platforms Optimize portfolio value through M&A Become a leading global content producer/distributor October 15, 2015 Page 15

16 At a Glance Our unique business model leverages TV power and digital know-how TV synergies TV ad space at no additional cost Product bundles and cross-promotion Top US content and exclusive local content Extended sales channel through Smart TV/HbbTV Shared customer data & insights Digital Entertainment + TV Digital playbook Marketing and data expertise Distribution capabilities Local operational launch pad Inter-vertical synergies Experienced leadership Ventures & Commerce October 15, 2015 Page 16

17 Media investments Cash investments At a Glance We benefit from a successful twofold cash & media investment strategy M&A activity EUR 27m EUR 57m EUR 122m EUR 508m YE: 11 (#) YE: 21 (#) YE: 27 (#) YE: 30 (#) 1) Note: M&A spend based on net purchase price and earn-out payments as well as bond redemption (etraveli). Media October 15, 2015 Page 17 investments partially with minor cash contribution; figures shown represent cumulative number of deals at year-end 1) As of December 31, 2015

18 At a Glance We have a robust M&A strategy with three key pillars for potential investments in Digital & Adjacent Deal Type Rationale Investment style Examples 1 Synergistic value plays M4E Minority Majority Capture share of wallet of marketing spend plus cluster synergies 2 Sales platforms Build and scale distribution platforms creating potential for bundle offers for key media clients 3 Strategic hedges Hedge against key global trends potentially affecting core business Loss of TV eyeballs Studio dependency Loss of advertiser access / ad-dollars October 15, 2015 Page 18

19 At a Glance We follow clear investment criteria to select our markets Criteria fit High Medium Low Selection criteria for verticals Travel Beauty & Accessories Online Comparison Entertainment TV works Brand-driven Community-focused Local edge Manageable inventory n/a n/a n/a Synergies with portfolio Structural growth market Attractive margins Manageable disruptive forces October 15, 2015 Page 19

20 At a Glance We create substantial value through market stimulation and elimination of media costs by leveraging idle TV ad inventory Implied EV/EBITDA acquisition multiple 10.0x Pro-forma EV/EBITDA multiple at acquisition Market share gains through TV ad leverage Marketing cost synergies Expected pro-forma acquisition EV/EBITDA multiple [illustrative indexed data, VERIVOX example] October Note: Illustrative 15, 2015 and simplified value creation mechanism Page 20

21 At a Glance M&A activities with a strong financial track record M&A spend ~EUR 950m until Dec 2015 External revenues FY2015 vs. LTM at entry (EUR m) ~50% External EBITDA FY2015 vs. LTM at entry 2) (EUR m) Weighted average age of our portfolio 1) <2 years ~2x Note: Based on M&A transactions until YE2015 across all segments. M&A spend based on net purchase price and other transaction related payments (e.g. etraveli bond repayment) but excl. future earn-out and put payments. Foreign currencies translated at constant rates. Entry LTM figures partly based on October local GAAP 15, 2015 and management reports. Games as per business unit. 1) Age of assets within our portfolio since acquisition, weighted with invested capital Page 21 per asset, respectively; 2) LTM entry EBITDAs include air-time cost (for red Arrow companies partly based on full year; FY2015 EBITDAs exclude airtime cost; EBITDA partly entity based.

22 At a Glance Strong track record of Digital & Adjacent segment driven by dynamic organic revenue growth and M&A External revenues D&A [in EUR m] % CAGR Organic revenue development Inorganic revenue contribution October Note: 15, and 2011 revenues adjusted for 9Live and Pay TV revenues, 2015 inorganic figures adjusted for disposal of Page 22 Booming (deconsolidated in May 2015)

23 At a Glance Red Arrow has been showing continuous growth since 2010 supported by a number of smaller, mainly US-centric acquisitions [external revenues, in EUR m] 262 CAGR +80% Inorganic revenue contribution Organic revenue development US accounts for 69% 2) of Red Arrow s global revenues October 1) Partnerships. 15, ) Share of FY 2015 External revenues generated by US production entities (excl. Dorsey Pictures) Page 23

24 At a Glance We are well on track after half of mid-term target period Rec. EBITDA growth target [in EUR m, degree of achievement] revenue growth target [in EUR m, degree of achievement] 49% 4,206 52% 60% 43% 61% 3, ,095 1,926 2,152 2, ,535 2, Group rec. EBITDA Broadcasting Germanspeaking Digital & Adjacent Content Production & Global Sales ProSiebenSat.1 Group 2018 revenue growth target Rec. EBITDA margin profile 2018E +EUR 375m +EUR 1,200m +EUR 275m +EUR 1,850m >30% 15-20% 10% >26.0% February Continuing 25, 2016 operations Degree of achievement target Page 24

25 At a Glance We confirm our financial policy and M&A strategy Financial leverage target range 1) x Dividend pay-out ratio 2) 80-90% Acquisition strategy smaller/larger bolt-on and media investments Maintaining a solid financial profile is a key element of our growth strategy October Continuing 15, 2015 operations 1) Net debt/ltm recurring EBITDA 2) Based on underlying net income Page 25

26 At a Glance Financial leverage at YE 2015 well inside target range of x despite increased M&A Net debt [in EUR m] Net financial debt 2,500 2,000 1,500 1, x 2.1x , ,940 Change in net debt mainly due to increased M&A activity in 2015 Cash on balance sheet EUR 734m at YE /31/ dividend payment M&A spend Other FCF before M&A 1) 12/31/2015 Financial leverage Financial leverage: Net debt/ltm rec. EBITDA (LTM rec. EBITDA of EUR 925.5m (previous year: EUR 847.3m) for February continuing 25, 2016 operations); 1) Repayment of finance lease liabilities, dividend payments to non-controlling interests, payments Page 26 for businesses without change in control and financing costs

27 At a Glance Significant total shareholder return outperforming European peers and major German indices Total shareholder return [indexed, FY 2015] % y-o-y Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 ProSiebenSat.1 Media DAX MDAX European FTA Broadcasters Note: European FTA broadcasting peers: Atresmedia, ITV, M6, Mediaset, Mediaset Espana, MTG, RTL, TF1 October (equally 15, weighted) 2015 Page 27 Definition of total shareholder return: Total of share price return and dividends paid (indexed)

28 At a Glance based on our steady growth and attractive dividends Growth Solid growth in core TV market & dynamic growth in attractive digital markets Leader in both TV and Digital Digital growth opportunities Unique and successful business model + Dividend Solid financing structure Strong operating free cash flow Cash-equivalent promotional power of TV stations 80-90% dividend pay out ratio Dividends to grow in line with profits 2018 target: +10% revenue CAGR High single-digit underlying net income CAGR October Continuing 15, 2015 operations Group revenues growth target vs Page 28

29 At a Glance Increased Dividend for 2015 reflecting continued earnings growth 2015 Dividend proposal Underlying EPS and DPS in Euro Dividend per share: EUR 1.80 Total dividend pay-out 1) : EUR 386m Dividend yield 3.8% 2) Pay-out ratio: 82.5% 1.00 AGM on June 30, Dividend payment on July 1, Underlying EPS DPS per dividend entitled common share 1) Dividend pay-out calculated on the basis of 214.2m shares (4.6m treasury shares not entitled to a dividend); proposed 2015 February 25, 2016 Page 29 dividend subject to Supervisory Board and AGM resolution; 2) Based on share price of EUR on Dec 30, 2015

30 At a Glance Our 2016 outlook clear pathway to 2018 Group revenue growth to exceed +10% Ad performance in line with positive net TV ad market Digital & Adjacent with double-digit revenue growth Recurring EBITDA and underlying net income above prior year February Continuing 25, 2016 operations Page 30

31 Broadcasting German-speaking TV Performance October 15, 2015 Page 31

32 Broadcasting German-speaking / TV Performance The German TV market remains strong TV viewing expected to remain broadly stable in the coming years High quality content typically available on FTA TV Lower Pay TV penetration, limited willingness to pay Online video consumption incremental to TV viewing Studio contracts with supporting rights (incl. holdbacks) Windowing and preference for German language protect FTA TV and drive reach as well as monetization October 15, 2015 Page 32

33 Broadcasting German-speaking / TV Performance Best ratings performance in the last ten years Audience share (A14-49) [FY 2015, in %] Basis: All German TV households (GER+EU), A years, Mon-Sun, full day 3-3 h; ProSiebenSat.1 w/o N24 & w/o 9live, February sixx since 25, 2016 Feb 01, 2011, SAT.1 Gold since Jan 17, 2013, ProSieben MAXX since Sept 03, 2013; Page 33 Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland

34 Broadcasting German-speaking / TV Performance Continued growth of young channels Audience share (A14-49) [FY 2015 vs. FY 2014, in %] 1.4% +0.0%pts 1.3% +0.7%pts 1.2% +0.2%pts Best rating with single format Best daily performance Best rating with single format 7.9% 2.8% 8.9% Basis: All German TV households (GER+EU), Mon-Sun, 3-3 h; sixx from Feb 01, 2011 onwards, SAT.1 Gold from Jan February 17, , onwards, 2016 ProSieben MAXX from Sep 03, 2013 onwards; Page 34 Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland

35 Broadcasting German-speaking / TV Performance and significant lead over key competitor [FY, in %] Audience share comparison (A14-49) % pts +0.5% pts +2.0% pts +4.0% pts +5.2% pts Sports year Basis: All German TV households (GER+EU), A 14-49, Mon-Sun, full day 3-3 h, SAT.1 Gold since Jan 17, 2013, ProSieben February MAXX 25, since 2016 Sep 03, 2013; RTL Mediengruppe w/o RTL II; Page 35 Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland

36 Broadcasting German-speaking / TV Performance New Swiss channel Puls 8 with strong start Official launch on October 8, 2015 Top formats ) The Simpsons Complementing channel portfolio with strong ad market demand 1) Blue Bloods Up to 7.0% Ø 1.0% SoV in A15-49 Ø 1.1% SoV in key target group 1) Top result in 2015: Best daily SoV of 2.8% in key target group and 2.6% in A15-49 Elementary Up to 5.8% Up to 5.5% 1) In key target group A purchase decision makers; 2) A 15-49; February Basis: 25, Oct Dec 31, 2015; D-CH, A15-49 / purchase decision makers, full day 2-2 h; Page 36 Source: Mediapulse TV-Panel

37 Broadcasting German-speaking / TV Performance Multi-year output deals with 6 out of 8 major US studios Examples Features Series (sitcoms) Top formats (excerpt) Key TV program secured well beyond 2019 February 25, 2016 Page 37

38 Broadcasting German-speaking / TV Performance Program rights management to protect our leadership Continuous optimization of acquisitions with qualifiers to ensure top content inflow holdbacks & windowing terms to protect FTA with exclusivity additional rights (e.g. Pay TV, VoD, A-CH, sublicensing) for add. utilization & marketing Multi-channel & strong digital platforms secure efficient windowing/ monetization Page 38

39 Broadcasting German-speaking / TV Performance Comprehensive program mix of all genres ProSiebenSat.1 Group content break-down [in percent of total hours] Reality News, Magazines & Sports #1 breakfast television (SAT.1 Frühstücksfernsehen) Leading boulevard & lifestyle shows (taff, red!) #1 science show (Galileo) Reality Blockbuster (e.g. Promi Big Brother, Biggest Loser, Rosins Restaurants, Hochzeit auf den ersten Blick) 13% 11% Film International Deals with major studios Warner, 20 th Century Fox, Disney, Paramount, Constantin, Regency Entertainment Top casting shows (The Voice of Germany, Germany s next topmodel) #1 competition show (Schlag den Raab, The Taste) Film & Series National Talk of town formats (e.g. Die Udo Honig Story, Einstein, Die Ungehorsame) 15% 2% 2% 7% 49% Series International & Animation Top crime series (Navy CIS, Criminal Minds, Castle) Leading in sitcoms (Big Bang Theory, Two & a Half Men) Long-running cult series (e.g. Simpsons, Bonanza) Licensed non-fiction sixx, e.g. Jamie Oliver, Tattoo Nightmares, Die perfekte Hochzeit ProSieben MAXX documentaries, e.g. Ross Kemp, Bruce Parry, Duck Dynasty Commissioned content Licensed content Notes: FY 2015: Film International incl. international coproduction; Licensed non-fiction incl. documentaries & International Readymades Page 39

40 Broadcasting German-speaking / TV Performance TV related consumption with increasing potential until 2020 Daily TV and video consumption 1) Online non-tv related (including PayVoD) Online TV related (streaming & catch-up) Classic linear TV Ad target group (A 14-49) Young segment (A 14-29) [Ø daily video viewing in minutes] % TV related [Ø daily video viewing in minutes] % TV related E E Online video usage is incremental to TV related consumption With our Digital Entertainment portfolio we are well prepared for potential changes in video consumption 1) Basis: All German TV households (Germany + EU) Source: AGF in cooperation with GFK, SOM projection Page 40

41 Broadcasting German-speaking / TV Performance Panel upgrade to deliver ~6% incremental reach vs More TV usage situations Panel extension Implemented and planned TV panel adaptions Complete coverage of 2nd, 3rd, TV sets Upgrade of single household measurement Inclusion of German-speaking non-eu foreigners (e.g. Turkish population) / % +6% Impact Impact 2016 vs Measured reach 1) in young segment (A 14-29) Measured reach 1) in key target group (A 14-49) Live streaming Web browser Mobile & Smart TV apps (e.g. 7TV, Magine, Zattoo) Q Q February 1) Gross 25, reach, 2016 annual effect; SevenOne Media estimates based on current planning Page 41

42 Broadcasting German-speaking / TV Performance Importance of TV supported by 2nd screen & social media Importance of TV 2 nd screen & social media impact 86% of daily video consumption is TV-related (A 14-49) 50% higher daily TV consumption of multi-screeners 1) 86% say TV will increase or maintain importance 61% recommend ProSieben due to social media activities 2) 94% adjust their living room furniture towards the TV set 38% of social media users watched an herein advertised TV format 1) Compared to mono-screeners (multi Screeners use >1 screen device) 2) Base: followers of P7 social media activities October 29, 2015 Page 42 Sources: Media Activity Guide 2015 (SevenOne, Forsa); Screen Life 2014 (Screenforce); Harris Interactive SocialLife 2014

43 Broadcasting German-speaking / TV Performance Strong reach for lighthouse formats across all platforms Examples Content reach: ProSiebenSat.1 linear TV + online/mobile [FY 2015, views in million] Linear TV 1) Owned & operated online + + Online live streaming & full episode catch-up 2) Short clips 2) Total reach vs. TV only +62% +36% +24% +21% 1) Basis: A 14-49, TV contacts with >1 min of viewing; 2) Channel websites + 7TV app (live-streaming w/o 7TV app) FY February 2015; excluding 25, 2016 Syndication, MyVideo, Youtube, HbbTV; short clips including uncategorized video views; Source: AGF in Page 43 cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland

44 Broadcasting German-speaking / TV Performance Digitally enhanced viewer experience Examples 2nd screen/digital entertainment Social media Channel websites & P7S1 Apps Increase engagement through live streaming, periodic news feeds, web-only events & interactivity Make TV content viral & snackable (e.g. <120s teaser clips for mobile) Drive additional monetization Gain actionable customer insights Orchestration of platforms drives reach Leverage social talk to create must see-appeal of formats Steer traffic/reach towards FTA and 2nd screen offerings Benefit from user generated content to increase buzz October 29, 2015 Page 44

45 Broadcasting German-speaking / TV Performance Low penetration of alternative offerings supporting linear TV in Germany Pay TV penetration 1) 20% 85% 53% 86-96% Monthly spend per Pay TV household 2) USD 25 USD 95 USD 96 USD 33* Share of time shifted usage (vs. live TV) 3) 2% 11% 14% 5-7% SVoD penetration 4) 11% 47% 23% 32-69% Connected TV penetration 5) 32% 30% 41% 31-43% Daily online video usage 6) 21% 32% 33% 26-33% Share of broadband connections >15 Mbps 7) 14% 22% 24% 25-35% Low penetration of pay offerings and alternative video technologies strengthen the position of linear Free-TV in Germany compared to other countries 1) DE ProSiebenSat.1 Distribution (2015E); USA SNL Kagan (2015E); UK ofcom International CMR 2014 (2013); NORDICS Digital TV Research (2014E) 2) DE VPRT Jahresbericht Pay-TV in Deutschland 2015 (2014) USA SNL Kagan 2015 (2014) UK ofcom International CMR 2014 (2013) NORDICS (*SWE only) ofcom International CMR 2014 (2013) 3) DE AGF TV Scope (Q1 2015) USA Nielsen (Q1 2015) UK Thinkbox Annual Review 2014 (2014) NORDICS FIN Finnpanel Oy, TAM 2014 (2014) NOR TNS Gallup TV-meterpanel (2014) 4) SVoD TV household penetration GER: P7S1 Analysis; 2015 EoY estimate, based on Goldmedia, GfK, forsa, PWC, IHS, Ampere Research; USA/UK: EoY 2015 Ofcom, Parks Associates, Nielsen; NORDICS emarketer (2014) 5 & 6) TNS Google The Connected Consumer Survey 2014/2015 (2014) 7) AKAMAI Q Page 45

46 Broadcasting German-speaking / TV Performance and distinct characteristics of the German TV market Ad break intensity Channel fragmentation Content quality in Free-TV Language Studio contracts Windowing Low intensity highly regulated (max. 12 min/h) Less fragmentation strong lighthouse channels >50 high/good quality channels in FTA TV with top US & sport content Dubbed version preferred FTA TV with strong negotiation position with supporting rights (incl. holdbacks) FTA TV widely protected vs. VoD High intensity no ad break regulations (15-20 min/h) High fragmentation premium TV package incl. >300 channels High-quality & top sport content not in basic TV service Pay TV a Must Have English language preferred Broad syndication model Parallel windowing of top content Distinct characteristics of the German TV market secure dominant position of Free-TV compared to the US Page 46

47 Broadcasting German-speaking / TV Performance In the US, attractive TV channels for young target group missing Positioning age & gender: Full day, Ø 2014, top channels US [in %; size of bubbles = Ø share % adults 14-49] 100 Male 75 Old 50 Young Female Note: Sample comprises of top broadcasting and cable networks Source: AGF/GfK Page 47

48 Broadcasting German-speaking / TV Performance Germany especially P7S1 has attractive TV channels for the young target group Positioning age & gender: Full day, Ø 2014, top channels Germany [in %; size of bubbles = Ø share % adults 14-49] 100 Male 75 Old 50 Young Female Source: AGF/GfK Page 48

49 Broadcasting German-speaking / TV Performance TV is by far the leading medium Monthly net reach Monthly net reach & usage duration 100% Private TV Total TV Internet 50% Usage (hrs/month) Basis: TV viewers 3+; Internet users 2+; March 2015 Source: AGF in cooperation with GfK/TV Scope/Nielsen Netview/B4P/SevenOne estimates Page 49

50 Broadcasting German-speaking / TV Operations YouTube would be a small channel in TV October Source: 15, AGF 2015 in cooperation with GfK; TV Scope 6.0, May 2015; Page 50 Double Play Data Set May 2015; own calculations (assumption for YouTube: 50% share of mobile usage)

51 Broadcasting German-speaking / TV Performance YouTube with much lower reach and ad effectiveness Ø Daily YouTube reach by time category 1) Ad comparison: Unaided ad awareness Adults 14+ [in %] For reach in TV a viewer only counts with more than 1 min of viewing time Index vs Display Ad 2) Index +240 YouTube user: TV ads are 3) +289 % more entertaining % more sales stimulating 10 0 up to 1 min 1-10 min min >30 min Interstitial PreRoll PreRoll YouTube prosieben.de TV +345% more credible 1) Basis: Total reach adults 14+ in May 2015; Source: Double Play data/media Activity Guide; own calculations/sevenone Media/Media Strategy & Analytics 2) Basis: n=350 persons yrs; 10 video ads per media, index vs display ad; source: Eyesquare/SevenOne Media/Advertising Research 3) Basis: YouTube User, percentage: compared to online video advertising: BfP2015 II/MDS/SevenOne Media Page 51

52 Broadcasting German-speaking / TV Performance Millennials media usage strongly shifts to TV after career start Millennials (aged 14-34): Ø daily TV, online & online video usage [in min] TV -25% % % 103-4% 99 Online % 42-45% 23 Online video 0 Pupils Students/apprentices Young professionals Pupils: yrs., students, pupils; students/apprentices: yrs., students, apprentices, young professionals: years, working part time or full time Source: TV: AGF TV Scope / Online: Media Activity Guide 2015 SevenOne Media/forsa Page 52

53 Broadcasting German-speaking Ad Market Performance Page 53

54 Broadcasting German-speaking / Ad Market Performance German TV ad market benefits from sound economic conditions Net TV ad market, private consumption, GDP in Germany [change in %] E 2016E * 1.9 Net TV ad market CAGR E: +2.5% (*2015/16E: P7S1 estimate) Private consumption CAGR E: +2.5% GDP CAGR E: +1.2% October TV & private 15, 2015 consumption: in current prices; GDP: price adjusted, chain-linked Page 54 Source: Net TV ad market: Magna Global (December, 2015); Destatis, ifo Economic forecast 2015 (December 2015)

55 Broadcasting German-speaking / Ad Market Performance and German TV growth accelerates, yet still catch-up potential Net TV advertising market Germany, UK and US [indexed] % +1.4% +2.2% +4.0% +2.5% E 2016E UK US Germany CAGR E: +2.2% +2.5% +4.1% October Source: 15, Magna 2015 Global (December, 2015), indexed; TV incl. Multichannel/Pay TV Page 55

56 Broadcasting German-speaking / Ad Market Performance Limited impact of 2016 sports events on TV ad market growth Estimated 2016 German net TV ad market growth Net TV ad market growth rate [in %] Incl. minor benefit in Q1 due to earlier Easter Q1 Q2 Q3 Q4 Ø Comments Sports events to trigger pull-forward effects in April and May June and July likely to be weaker Catch-up effects in August expected No major shift of advertising revenues between quarters October Source: 15, ProSiebenSat estimate Page 56

57 Broadcasting German-speaking / Ad Market Performance Limited catch-up risk of German digital ad revenues vs. US Digital share of total net ad revenues 40% 30% 20% 10% E 2016E October Source: 15, Magna 2015 Global (December, 2015), SevenOne Media own estimate Page 57

58 Broadcasting German-speaking / Ad Market Performance 8 out of 10 biggest industries increased TV budgets Gross TV ad spendings of top 10 TV industries, Germany [2015 vs. 2014; in EURm, % and %pts] in EURm in EURm Share Δ Δ TV in media mix Total Trade & Shipment Food Cosmetics & Toiletries Business Services % +7.0% +1.3%pts 14.6% 12.3% 11.5% 9.4% +13.6% +4.2% +2.6% +30.9% +3.0%pts -1.3%pts +2.3%pts +3.6%pts Telecommunication % +17.1% +3.0%pts Beverages Motor Vehicles Pharmacy Finance % 5.3% 5.2% 4.4% +10.0% -14.5% +6.7% +3.7% +3.5%pts -2.2%pts -3.6%pts +3.2%pts Detergents % -6.7% +1.7%pts February Source: 25, Nielsen 2016 Media Research; without Media & Publishing and Other Advertising industries Page 58

59 Broadcasting German-speaking / Ad Market Performance TV share increased in each advertiser cluster, particularly Top 50 Gross TV ad spendings by advertiser size cluster, Germany [2015 vs. 2014; in EUR m and %pts] TV, EUR m TV share Print, EUR m Print share Top %pts %pts Top %pts %pts Other %pts %pts February Source: 25, 2016 Nielsen Media Research; SevenOne Media Market Insights: own calculation Page 59

60 Broadcasting German-speaking / Ad Market Performance Strong net CPT development since 2009 Net CPT development [Index: 2007=100] Market Basis: All TV-HH (D+EU), TA 1-30; SevenOne Media: SAT.1, ProSieben, kabel eins; IP: RTL, VOX. Source: AGF/GfK, TV Scope, SevenOne Media, Pricing & Media Strategy, P7S1 estimates/own calculations Page 60

61 Broadcasting German-speaking / Ad Market Performance We increasingly capitalize our audience share gains from new channels [in %] 56 Relative share of TV ratings vs. relative share of TV advertising 55% Share of TV ratings (P7S1 1) vs. RTL 2) ) [in %] Net share of TV advertising 52 51% Share of TV advertising (P7S1 1) vs. RTL 2) ) ) P7S1: SAT.1, ProSieben, kabeleins, sixx, P7Maxx, SAT.1Gold 2) RTL: RTL, Vox, Super RTL, n-tv, Nitro Basis: : FY, P7S1 estimates Page 61

62 Broadcasting German-speaking / Ad Market Performance TV usage share above print while TV ad share lagging behind TV usage share 1) clearly higher than print while TV advertising share 2) still lagging behind [share of usage, in %] [net share of advertising, in %] 37% +33 %pts -14 %pts 23% 37% 4% TV usage Print usage TV advertising Print advertising 1%pt increase in media mix equals ~EUR 60m net TV ad revenues for P7S1 1) Media usage 2014 (n = 1,501); based on Adults 14+ years; forsa, SevenOne Media 2) Magna Global (December, 2015), Online including search (incl. Google) & other (incl. Facebook) Page 62

63 Broadcasting German-speaking / Ad Market Performance which strongly differs from media mix in other countries Share of advertising: TV vs. print 2014 [in % of total media] PRINT TV Source: Magna Global (December, 2015), TV incl. Multichannel/Pay TV, Online including search & other Page 63

64 Broadcasting German-speaking / Ad Market Performance TV is the most effective and efficient medium Highest effectiveness Advertising effectiveness 1) [aided advertising recall, index 100 = without contact] Net CPT ranges 2) [in EUR] Attractive pricing TV average long-term ROI InStream Video InPage / Display Print TV Newspapers Magazines Online 1) Eye Square 2012, basis: n = 200, years; 4 tested advertising campaigns per medium 2) SevenOne Media own estimate, based on Solon 2015 Page 64

65 Broadcasting German-speaking / Ad Market Performance Limited competition for branding budgets only by digital video Digital net ad revenues, by format 1) [in EUR m] Video Social Display Search CAGR : +38,0% +31,3% +3.4% +7.8% 2015: 94% of digital ad revenues not critical for TV Comparison: TV and video ad market ) [in EUR bn] Other E 2016E 2017E 2018E Video TV Despite high online ad intensity digital companies still spend 75% on TV Source: Magna Global (December 2015), SevenOne Media own estimate 1) incl. FB/YouTube, 2) 2015: P7S1 estimates Page 65

66 Broadcasting German-speaking / Ad Market Performance We see an addressable EUR 2.7bn print ad spending potential Gross print ad spendings ) [in EUR bn] Not directly addressable 2) 2.9 Total: Regional Addressable net print potential (at 50% yield) Regional: TV & digital potential Additional EUR 600m from regional radio and outdoor ad market adressable 3.2 National 1.6 National: Core TV potential 1) Newspapers and magazines only; excl. professional magazines and direct mail 2) Not directly addressable: B2B, classifieds, tobacco, etc. Source: Nielsen Media Research (2014)/SOM Market Insights Page 66

67 Broadcasting German-speaking / Ad Market Performance New ad segments with long-term growth identified Description Growth driver Adressable/ regional TV Targeted audience groups also in TV New geographic target groups Data/ Digitalization Digital outof-home (DOOH) Entering as sales house for Cittadino and Tank & Rast Digitalization Digital freesheets New freesheet app marktguru will tap into large print freesheet budgets Digitalization February 25, 2016 Page 67

68 Broadcasting German-speaking / Ad Market Performance Regional and individual advertising reveal large opportunities Approach Target segments HbbTV 1.0 HbbTV 2.0 Future Platforms Regional New geographic target groups Overlay products Spot replacement Spot replacement & Personalized targeting Premium pricing for: targeted audience groups advertisers less focused on fast reach and more on hyper-specific targeting First devices in 2016 product bundles February 25, 2016 Page 68

69 Broadcasting German-speaking / Ad Market Performance Several levers to address regional potential focus on HbbTV Existing solution: cable spot overlay National spots with regional discount SAT.1 regional windows HbbTV 1.0 non-spot products HbbTV 2.0 spot overlay IPTV spot overlay (cooperation req.) Mobile live stream targeting (e.g. 7TV) Short-term Long-term ban 2016 February 25, 2016 Page 69

70 Broadcasting German-speaking / Ad Market Performance Fast growing HbbTV will allow regionalization and targeting Existing products, HbbTV 1.0 HbbTV penetration Digital overlays on TV signals Red Button TV Spot with regional overlay & microsite Red Button SwitchIn (microsite program layover when switching to P7S1 channel) Red Button CutIn (layover during linear program, testing) Number of connected TV sets in Germany 1) [in m] Connected TV incl. Hbb TV Hbb TV HbbTV 2.0 starting 2016 Linear TV spot replacement/overlay E 2016E 2017E 2018E 2019E 2020E 1) Incl. Digital TV receiver and DVD/Blu-Ray receiver October 15, 2015 Page 70 Source: P7S1 estimates based on multiple sources, e.g., GfK, gfu, Goldmedia

71 Broadcasting German-speaking / Ad Market Performance Innovation leader in new addressable TV business Switch-in XXL 48 campaigns 25 clients Spot overlay Hornbach Toyota Burger King Switch-in AXE Vodafone DLIA Daimler (smart) Saturn P&G - Oral B Sony February 25, 2016 Page 71

72 Broadcasting German-speaking / Ad Market Performance Entering DOOH with Cittadino/Tank & Rast partnership Net OOH market 1) [in EUR m] Estimated DOOH market development (net) 2016 market share estimate 2) [in %] Cittadino,Tank & Rast and ProSiebenSat.1 with strong complementary assets 968 1,048 Local players ProSiebenSat.1 as sales house and provider of attractive content 3) >10% Premium touchpoints with strong presence at airports, highway stations and POS 2015 Traditional OOH 2020E DOOH Attractive cross channel bundling offers 1) Source: Magna Global Forecast Dec 2015; 2) Source: SevenOne Media estimate; February 25, 2016 Page 72 3) Note: no equity stake

73 Broadcasting German-speaking / Ad Market Performance DOOH complementing our multi-screen offering Key Performance Indicators TV TV 29.5% audience share 1) 44% ad market share 2) PC Online 270m monthly video views 3) 11% ad market share 2) Tablet Smartphone Mobile 80m monthly video views 3) 11% ad market share 2) DOOH screen NEW DOOH 225m monthly contacts 4) > 10% market share 5) Source: 1) TV Scope, A 14-49; 2) Nielsen Media Research; 3) SevenOne Media estimate, YouTube Analytics; comscore February videomatrix, 25, 2016 H1 2015; 4) Total of ad media, media exposure from Public Screens 2014 and supplier indications; 5) Page 73 SevenOne Media

74 Broadcasting German-speaking / Ad Market Performance Marktguru app positioned to tap into large free sheet budgets Launch H Print net free sheet market 1) 2014 [in EUR m] 2,591 Digital free sheet market 2) [in EUR m, % of free sheet market] Newspaper ads (incl. supplements) 1, % 1.5% Regional free sheets ("Anzeigenblätter") Direct distribution free sheets (unadressed) Potential price promotion budgets EUR 25m EUR 35m +40% y-o-y 1) SevenOne Media own estimate for net market (retailer split according to Nielsen Media Research, applied to ZAW net February figures 25, for 2016 print and Deutsche Post Dialogmarketing 2014 for direct mail figures); 2) SevenOne Media own estimate based Page 74 on expert calls with agencies and clients

75 Broadcasting German-speaking / Ad Market Performance Overall solid growth potential for German net TV ad market Market drivers Net market growth potential 2018 vs [in EUR m] Growth Basic market growth/net price increase 1 ~180 National print cannibalization 2 ~290 Media mix Regional TV advertising Individual TV premium advertising New markets/new segments ~50 tbd ~50 Shift to digital video -130 Overall growth potential ~440 (CAGR 2-3%) October Estimate 29, based 2015 on Magna Global (December, 2015), SevenOne Media own estimate Page 75

76 Broadcasting German-speaking / Ad Market Performance Sales outlook German net TV advertising market growth of +2-3% P7S1 to grow in line with positive net TV ad market Continued increase of TV share in media mix Net CPTs to further increase due to increased value of reach February 25, 2016 Page 76

77 Broadcasting German-speaking Distribution Page 77

78 Broadcasting German-speaking / Distribution Dynamic growth of distribution continued Strong revenue growth continued with +20% in ) Dynamic increase of HD subscriptions with +0.9m in 2015 (total: 6.2m) Mobile and digital deals grow distribution channels Hard-bundling deals closed for maxdome with Unitymedia and Tele Columbus February 1) Revenues 25, : EUR 111.7m (+EUR 18.8m vs. FY 2014) Page 78

79 Broadcasting German-speaking / Distribution Double-digit increase of revenues and HD subscribers in % EUR +18.8m +0.9m +18% P7S1 distribution revenue growth P7S1 HD subscriber growth Note: HD Free-to-air subscribers shown; paying subscriber figures as reported by platform partners February 25, 2016 Page 79 (EoP; subject to subsequent adjustments by platform partners); total of EUR 6.2m; FY 2015 vs. FY 2014

80 Broadcasting German-speaking / Distribution 6.2m HD subscribers 2015 dynamic growth confirms 2018 target HD FTA subscribers [in million, at YE] HD growth levers Hard bundling and upselling of platforms Structural effects through analog melt down / digital HH increase and DVB-T2 launch in Ongoing technical evolution (HD/UHD screens) pushes HD take rate E HD penetration 1) 7.1% 10.6% 13.4% 15.7% 23.0% HD push measures initiated by P7S1 to sustain HD growth 1) HD pay penetration based on total TV households in Germany (39.6m) February 25, 2016 Page 80 Source: Astra TV Monitor

81 Broadcasting German-speaking / Distribution Distribution in Germany historically dominated by large players Satellite Cable operators Playout (Unterföhring) Uplink 19.2 East Cable networks Mobile 2015 HH: 18.2m IPTV 2015 HH: 16.9 m (5.6m HH analog) Terrestrial Terrestrial (DVB-T) IPTV networks Satellite (direct-to-home) Quasi-monopolistic players with stable market shares 2015 HH: 2.3 m 2015 HH: 2.2 m Note: HH = households; DVB-T2 expected to be launched in 2017 Source: Astra TV monitor; Telekom publications; P7S1 own assumptions Page 81

82 Broadcasting German-speaking / Distribution Seven-year satellite distribution extension Covering ~40% 1) of addressable households 2) 7 year contract extension with beneficial terms Closed in December 2015 D regional 3) CH, A CH, A CH, A Source: Astra Monitor Report; TNS Infratest; 1) Satellite households served through partnership: 7.7m (Hamburg/Schleswig- Holstein, Lower Saxony/Bremen, Rhineland-Palatinate/Hesse: 5.4m; Austria: 2m; Switzerland: 0.3m); 2) Addressable households in served region: 19.41m (Hamburg/ Schleswig-Holstein, Lower Saxony/Bremen, Rhineland-Palatinate/Hesse: February 25, 2016 Page m; Austria: 3.6m; Switzerland: 4.3m); 3) Federal States served through partnership: Hamburg/Schleswig-Holstein, Lower Saxony/Bremen, Rhineland-Palatinate/Hesse

83 Broadcasting German-speaking / Distribution Strong mobile coverage ensures maximum reach February 2016 (deal extension) November 2015 (deal extension) October 2015 July 2015 ~1.5m registered users 1) >0.7m addressable user base 2) >2.5m addressable user base 3) >0.3m addressable user base 3) 1) Magine publications; unique users not published; February 2) Zattoo 25, publications; 2016 average monthly unique users; Page 83 3) AGOF figures Q3/2015; average monthly unique users

84 Broadcasting German-speaking / Distribution First time FTA catch-up and Pay TV distribution on Zattoo and Magine Deal signed 02/2016 Launch 02/2016 ~1.5m registered users 1) >0.7m addressable user base 2) Strong customer proposition FTA linear complemented by catch-up for Magine Basic/Magic 3) and all Zattoo HiQ 4) customers Pay TV channels first time accessible via mobile aggregator 1) Magine publications; unique users not published; 2) Zattoo publications; average monthly unique users; 3) Magine Basic package (EUR 4.99/month); Magine Master package (EUR 15.99/month); 4) EUR 1.59 for 1 day; EUR 9.99 for 1 month; EUR for 3 months; EUR for 12 months Page 84

85 Broadcasting German-speaking / Distribution We secured best in class distribution to drive TV reach and revenues Cable Satellite IPTV Terrestrial Mobile 1) Phones/ tablets Connected Smart TVs Streaming devices FTA via platforms FTA via P7S1 app (live and/or catch-up) and mobile aggregator Reach 16.9m HH 2) (43% of total HH) 18.2m HH 2) (46% of total HH) 2.3m HH 2) (6% of total HH) 2.2m HH 2) (5% to total HH) >4m unique users 3) >80m devices 4) >5m devices 5) >2m devices 5) Profitable long-term deals Serving all linear TV use cases Increasing reach for ad revenue monetization 1) Complementary to cable, satellite, terrestrial and IPTV distribution; 2) Astra Monitor report, Telekom publications and P7S1 February estimate; 25, 3) 2016 Unique users per month, company publications, AGOF figures and P7S1 assumptions; 4) IHS data and P7S1 Page 85 estimate; 5) Digitalisierungsbericht, IHS data and P7S1 estimate

86 Broadcasting German-speaking / Distribution Outlook Grow distribution revenues through long-term contracts Leverage digital distribution to enable addressable TV/targeted advertising Leverage digital and mobile distribution to drive reach Ongoing HD subscription growth, confirming 2018 target of 9.2m HHs February 25, 2016 Page 86

87 Digital & Adjacent October 29, 2015 Page 87

88 Digital & Adjacent Key achievements in 2015 Maintained premium video leadership Created full ad tech stack Acquired Etraveli for our travel vertical #1 1) Reached #1 MCN position in Germany Closed landmark SVoD distribution deals Established online comparison vertical #1 2) 1) Source: Nielsen Media Research; German gross instream video ad market revenues without Google / YouTube, February Amazon, 25, Facebook, 2016 long-tail ad networks (Smartclip, etc.); 2) Source: ComScore YouTube Partners Report, Ø 2015, Page 88 German Video Views in m, desktop only

89 Digital & Adjacent We delivered double-digit growth in revenues and rec. EBITDA Ext. revenues Rec. EBITDA 1) [in EUR m] [in EUR m] +39% +32% ~20% Rec. EBITDA margin 2) FY 2014 FY 2015 FY 2014 FY 2015 October 1) Entity 29, rec EBITDA; 2) Entity rec. EBITDA / Ext. revenues Page 89

90 Digital & Adjacent driven by strong performance of all three units incl. M&A Digital Entertainment Adjacent Ventures & Commerce Revenues [FY 2015] EUR 300.2m EUR 80.6m EUR 465.6m Revenue growth [YoY] +36% +8% +47% October 29, 2015 Page 90

91 Digital & Adjacent We have market leading assets across all our D&A pillars Market position New FY 2015 revenue split Digital Entertainment 35.5% Ventures & Commerce 55.0% AdVoD Travel Top Top #1 3 #1 3) #1 #1 5 #1 1) #2 #1 2) #1 #1 Top 5 #2 PayVoD Games Beauty & Accessories Online Comparison Top 3 4) Top 3 5) #2 #2 Top 5 #1 #1 #1 Top 5 Adjacent 9.5% Ventures Music, Licensing, Sports #5 #1 (M4R/E) Leading German VC investor 1) Nordics; 2) Studio71 #1 MCN DE, together with CDS top 5 globally; 3) Yieldlab #1 Premium SSP in DACH; February 4) SVoD 25, market 2016 DE, according to Forsa; 5) Mobile and PC games publishers Europe, excluding direct publishing by Page 91 developers

92 Digital & Adjacent We have a unique approach to create competitive verticals with M&A use TV media to build brands and leverage our vertical synergies to create market leading businesses We acquire promising assets following a string of pearls approach October 15, 2015 Page 92

93 Digital & Adjacent We acquire promising assets following a String of Pearls strategy Bolt-on acquisitions accelerate our growth in national and international markets Commerce examples Attractive shareholder value creation potential for us through synergies with TV and our verticals Approach also includes joint deals with partners (e.g. VC funds) to secure most attractive assets Entertainment examples We will continue our String of Pearls strategy of bolt-on acquisitions and opportunistic lighthouse deals to grow our commerce and entertainment business October 15, 2015 Page 93

94 Digital & Adjacent We use an optimized four phase approach to build verticals Example: Phases of Travel vertical M4R/E Test media fit of markets with M4R/E Lead Gen Understand markets with asset-light invests Vertical Build verticals based on phase 1 and 2 learnings International 40 countries Expand most promising verticals internationally Key criteria for vertical selection: Synergies with TV Structural market growth Attractive margins Synergies with existing verticals Low likelihood of disruptive forces October 15, 2015 Page 94

95 Digital & Adjacent Initially, we test new markets and verticals with M4R/E What we get from M4R/E deals Rationale +17% # of active deals FY 2015 vs. PY 1) Equity Exit participation Revenue share Minimum guarantee Monetize our idle ad inventory and stimulate TV ad market Benefit from TV impact with performance-based models Test media fit and learn about potential new markets based on insights shared by assets October 1) Average 15, 2015 of period FY 2015 vs. average of period FY 2014 Page 95

96 Digital & Adjacent We enter new verticals with asset-light Lead Gen businesses Our Lead Gen approach Rationale Understand market dynamics by investing in Lead Gen Travel Beauty & Accessories Online Comparison New verticals Avoid high risk thanks to high-margin businesses without inventory cost Use Lead Gen as conversion driver for new verticals October 15, 2015 Page 96

97 Digital & Adjacent For new verticals, we target brand-driven (niche) segments Segment selection criteria Growth markets with local edge, that are fragmented/difficult to enter for global digital players Our TV assets can be successfully leveraged, providing a strong competitive position Revenue potential of >EUR 100m (per vertical) and double-digit rec. EBITDA margin possible or cash contribution from working capital Significant cluster synergies and potential for exclusive brands High average basket size Availability of complementary partners to mitigate cash/inventory risk Physical goods cluster Established Beauty & Accessories In preparation Home & Living Fashion & Lifestyle October 15, 2015 Page 97

98 Digital & Adjacent We then develop verticals following our digital playbook Premium TV media to drive awareness and sales Marketing & data knowledge to optimize SEO/SEA and CRM Distribution capabilities with existing commerce platforms Local operational launch pad to support with HR, legal and finance Intervertical synergies with our existing commerce verticals Digital transformation expertise proven by current portfolio Leadership by an experienced strategy team and operational experts Our digital playbook We secure majorities in attractive local niche markets around communities, make these verticals big with our playbook and consolidate the market with bolt-on M&A October 15, 2015 Page 98

99 Digital & Adjacent International: We leverage our Media Alliance to export verticals European Media Alliance Strategic rationale Scandi., CEE Media Alliance and strategic partner Next partner to join Access media of leading European broadcasters Spain New New UK Benelux & Finland France New Italy Poland Greece, Rom., Serb., Sl. Turkey >250m households reach Increase deal flow among media partners Offer Pan European deals to US/international imports October 15, 2015 Page 99

100 Digital & Adjacent / Digital Entertainment Agenda A B C Digital Entertainment Adjacent Ventures & Commerce February 25, 2016 Page 100

101 Digital & Adjacent / Digital Entertainment A In online video, we cover the whole value chain in Germany Content creation Aggregation Distribution Monetization AdVoD.de.de New New New MCN New New PayVoD 29bn video views in FY ) October 1) Video 29, views 2015 of P7S1 AdVoD platforms and mandates, incl. CDS (pro forma, deal closed Q3 2015) Page 101

102 Digital & Adjacent / Digital Entertainment A We maintain the #1 position in the premium video ad market Clear #1 position in a growth market driven by strong growth of our video platforms P7S1: #1 in premium video ad market 1) Nielsen in-stream video ad market 1) [in EUR m] % 497 Channel websites +50% Video unique users 2) Multi Channel Network % Video views 3) 1) Source: Nielsen Media Research; German gross instream video ad market revenues without Google / YouTube, February Amazon, 25, Facebook, 2016 long-tail ad networks (Smartclip, etc.); 2) Source: AGOF internet facts YTD Oct 2015, 10+; Page 102 3) Source: Internal data, excl. CDS

103 Digital & Adjacent / Digital Entertainment A while we are further growing our total video views P7S1 total video views Germany 1) [in bn] % bn Collective Digital Studio 2) FY 2014 FY 2015 Mandate Mandate Mandate October 1) Video 29, Views 2015 of P7S1 AdVoD platforms and mandates; source: P7S1 tracking. 2) Pro-forma YTD figures Page 103

104 Digital & Adjacent / Digital Entertainment A We are now a Top 5 global MCN with a premium market position Premium market position with highest reach per channel 1) GLOBAL >3.5bn monthly VV >350m subscribers 1,500 channels High (>1bn) Total reach p.m. Low (<1bn) Low (<0.5m) Global aggregator MCN Niche/local aggregator MCN Avg. reach per channel p.m. Global premium MCN Niche/local premium MCN High (>0.5m) 1,500 Channels >74,000 Channels >55,000 Channels >30,000 Channels >70,000 Channels 0m 1m 2m Ø 2.4m VV/channel October 1) Average 29, 2015 VV/Channel calculations based on numbers from SocialBlade, for Studio71 out of own CMS, for Maker from Page 104 company website, own calculations

105 Advertiser Digital & Adjacent / Digital Entertainment A We have created our own comprehensive ad tech stack Demand Side Platform Exchange/ Marketplace Supply Side Platform Ad server Sales house Publisher + mandates 51% 1) P7S1 stake in Virtual Minds 80% P7S1 stake in Smartstream Data Management Platform 2) Integration successfully finalized with increasing SevenOne Media inventory being implemented February 1) Active 25, Agent, 2016 Yieldlab and Adition are subsidiaries of Virtual Minds; 2) Adex is a minority investment of Virtual Minds Page 105

106 What? Why? Digital & Adjacent / Digital Entertainment A with assets that are highly complementary Virtual Minds Own comprehensive digital ad tech stack for programmatic advertising Smartstream.TV Secure position in growing lower price video audience segment #1 German premium display SSP with Yieldlab 1) 2) #1 German multi-screen video ad exchange >30m Unique users Ongoing European roll-out and new investments February 1) Yieldlab 25, 2016 is a subsidiary of Virtual Minds; 2) Adex is a minority investment of Virtual Minds Page 106

107 Digital & Adjacent / Digital Entertainment A The German SVoD market is still underpenetrated German penetration comparably low SVoD Household Penetration 2015 [in %] but several new players 3) entered the market 2006 Market Players as notable growth to come until 2018 SVoD Household Penetration 5) [in %] 47 1) 23 1) 11 2) ) 25 4) E 1) SVoD TV household penetration EoY 2015; Ofcom, Parks Associates, Nielsen. 2) SVoD TV household penetration EoY February 2015; P7S1 25, 2016 Analysis, based on Goldmedia, GfK, forsa, PWC, IHS Screen Digest, Ampere Research. 3) SVoD. 4) P7S1 Page 107 Analysis; 2015 EoY estimate. 5) based on 38.9m TV-Households in Germany.

108 Digital & Adjacent / Digital Entertainment A maxdome with strong growth and landmark distribution deals Landmark distribution deals closed All-in-one Set-Top-Box solution for linear TV & VoD maxdome exclusive and fully integrated SVoD service +78% +81% +30% + Further innovative distribution deals under evaluation SVoD subscribers 1) Total video views 2) Strong #3 market position Total user base 3) February 1) YE , 2016 vs. YE 2014; 2) FY 2015 vs. FY 2014; 3) Average per month FY 2015 vs. average per month FY 2014 Page 108

109 Digital & Adjacent / Digital Entertainment A and an attractive portfolio of exclusive content Selected exclusive content titles Highly competitive & exclusive content offering More than 20 series exclusively on maxdome 25+ titles in the top 50 vs. 20+ by Amazon and 35+ by Netflix >50% Top 50 share February 25, 2016 Page 109

110 Digital & Adjacent / Digital Entertainment A German PayVoD market with positive growth outlook maxdome will prevail as key Pay VoD player throughout 2018 Market size SVoD [in meur] Market size TVoD/EST [in meur] +49% % E E Key players Key players February Source: 25, P7S analysis based on Goldmedia, GfK, forsa, PWC, IHS Screen Digest, Ampere Research Page 110

111 Digital & Adjacent / Digital Entertainment A as the digitization of home video in Germany accelerates Digital PayVoD will surpass physical video in Germany by 2019 Market size: Total home video market in Germany [in EUR m] 1,800 1,825 1,850 1,875 1,925 1,950 18% 25% 34% 45% 57% 66% Digital PayVoD 82% 75% 66% 55% 43% 34% Physical video E 2017E 2018E 2019E 2020E February Source: 25, P7S analysis based on Goldmedia, GfK, forsa, PWC, IHS Screen Digest, Ampere Research Page 111

112 Digital & Adjacent / Adjacent Agenda A Digital Entertainment B Adjacent C Ventures & Commerce February Note: myticket.de, 25, 2016 eversport and 90Min are minority investments of ProSiebenSat.1 Page 112

113 Digital & Adjacent / Adjacent B Starwatch expanded its digital footprint Strong performance of our music label activities and expansion of our digital footprint in growing ticketing market 20% P7S1 stake >50% Top 20 share 30x Gold / Platinum status 1) 1x Diamond status February 1) 19 times 25, 2016 Gold status and 11 times Platinum status Page 113

114 Digital & Adjacent / Adjacent B We have established a strong new sports cluster We built a strong digital sports portfolio and closed landmark sports management deals Exclusive Olympic sports video platform One of the leading soccer media platforms Live sports broadcast video platform Several German national soccer team players signed Note: Sportdeutschland is a majority investment, Eversport and 90min are minority investments and Ultimate Fighting February 25, 2016 Page 114 Championship (UFC) are acquired rights

115 Digital & Adjacent / Ventures & Commerce Agenda A Digital Entertainment B Adjacent C Ventures & Commerce February 25, 2016 Page 115

116 Digital & Adjacent / Ventures & Commerce C In Travel, we acquired the leading Nordic online travel agency Leading online agency for flights with 12 brands in 40 countries Platform for further profitable, low risk internationalization 3.7m Passengers per year 1) >90m >1bn bookings 1) revenues 1) EUR gross EUR New brand for German meta business launched in Q4 February 1) FY , 2016 figures Page 116

117 Digital & Adjacent / Ventures & Commerce C to complement our Travel powerhouse with flight search Market position EUR ~180m Vertical revenues 2) (+16%) #1 1) Travel majority assets #1 #1 #1 Top 5 NEW Blank spot flight search integrated into vertical >30% revenue & rec. EBITDA growth cont. 3) Significant intercluster synergies Top 5 #2 >2x market growth 4) Clear market outperformance 1) Etraveli is the #1 flight player in the Nordics; 2) 2015 external revenues; 3) Synergy-based contribution estimated for FY February 2015; rec. 25, 2016 EBITDA w/o TV airtime costs; 4) Market based on the weighted average for all relevant market segments; Page 117 Source: TravelTainment, PhoCuswright - European Online Travel Overview Tenth Edition, PS71 estimates

118 Digital & Adjacent / Ventures & Commerce C We acquired Verivox to build our Online Comparison vertical Market position Online Comparison majority assets >1.5m Arranged contracts per year #1 #1 NEW Market leaders in energy and mobile bundles with significant synergies to grow other categories #1 Top 5 +30% Vertical revenue growth 1) Dynamic growth of Online Comparison vertical with strong contribution from Verivox in Q4 February 1) Pro-forma 25, 2016 net revenue growth FY 2015 vs. FY 2014 Page 118

119 Digital & Adjacent / Ventures & Commerce C New Beauty & Accessories vertical with strong profitable growth Beauty & Accessories majority assets +185% Vertical revenue growth 1) Market position Majority acquisitions of Flaconi and Amorelie to establish our B&A vertical 75% P7S1 stake 100% P7S1 stake Flaconi with new record revenue growth after our majority acquisition 51% P7S1 stake Ongoing evaluation of partnership options for further growth February 1) Pro-forma 25, 2016 net revenue growth of Amorelie, Flaconi & Valmano FY 2015 vs. FY 2014 Page 119

120 Digital & Adjacent / Ventures & Commerce C Our 7Ventures team with strong performance Strong revenue growth with an expanding portfolio of national and international deals 7Ventures revenues 1) +20% Logo Market leader for fitness dance classes NEW Logo Fashion online store NEW with daily new arrivals Logo Innovative car sale marketplace NEW FY 2014 FY 2015 Logo Online destination for state-run lottery Q4 Exit February 1) Total 25, ext revenues Page 120

121 Digital & Adjacent Digital & Adjacent outlook Deliver double-digit revenue growth in 2016 Outperform markets with existing assets / verticals Build new businesses to replicate our vertical synergy success story Continue bolt-on M&A and evaluate partnerships to further push growth Further internationalize our digital verticals February 25, 2016 Page 121

122 Content Production & Global Sales October 29, 2015 Page 122

123 Content Production & Global Sales Red Arrow: continued growth in revenues and rec. EBITDA Ext. revenues Rec. EBITDA [in EUR m] [in EUR m] +30% +31% FY 2014 FY 2015 FY 2014 FY 2015 October 15, 2015 Page 123

124 Content Production & Global Sales Continuous improvement in key KPIs 104 vs. 90 / FY % vs. 42% / FY Number of returning shows Returning shows rate Shows in the catalogue Territories sold to Note: Shows in the catalogue and territories are cumulative 2010 to 2015; Territories include sovereign countries and January 27-28, 2016 Page 124 administrative territories; Returning shows with revenues booked in FY % returning shows as of revenues.

125 Content Production & Global Sales Produced over 160 shows airing on 50+ networks worldwide 2015 Amazon (Season 2) TLC (Season 13) Channel 4 FYI / A&E (Season 3) MTG Lifetime (Season 4) Sat.1 (Season 2) ABC Bravo (Season 2) Sky 1 (Season 10) USA Network BBC Animal Planet (Season 2) ProSieben (Season 11) FYI (Season 2) October Note: Shows 15, 2015 produced incl. series, pilots and specials Page 125

126 Content Production & Global Sales with limited dependency on any single outlet Total production revenues 1) by source, FY 2015 [in %] 34% Returning shows 2) OTHER 0% 10% 20% 30% October 1) Unconsolidated 15, 2015 revenues; 2) Remaining 66% includes specials (purposely one-off productions) Page 126

127 Content Production & Global Sales Powerful US addition to non-scripted portfolio Closed Nov Majority acquisition of LA-based TV production company specialized in factual programming Expanded depth in valuable science space; solid cable networks relationship Access to low-cost production facilities in Turkey via local co-operation partner Highly profitable company with double-digit EBITDA margin; 200+ hrs of programming produced October 15, 2015 Page 127

128 Content Production & Global Sales Majority stake in US outdoor and branded content producer Closed Jan Dorsey Pictures (formerly Orion Entertainment) is run by leading executive Chris Dorsey One of the world s largest outdoor adventure programming producers Produced more than 1,000 hours of TV programming for a variety of major US networks, with an attractive margin profile Offers essential know-how and access to a new business area of branded entertainment October 15, 2015 Page 128

129 Content Production & Global Sales Launching UK high-end scripted drama JV, Cove Pictures New scripted and documentary production venture with Smuggler Entertainment, headed by Dame Heather Rabbatts Closed Feb Strong, international, talent-led development slate Feeds growing demand for high-end drama via cross- Atlantic UK US productions Secured partnership with James Bond franchise producer, Eon Productions October 15, 2015 Page 129