Realizing portfolio synergies

Transcription

1 Realizing portfolio synergies Content Production & Global Sales Jan Frouman October 15, 2013 Page 1

2 Red Arrow cordially welcomes you to today's presentation Red Arrow Reel Page 2

3 1 Performance Page 3

4 1 Powerful footprint 16 production assets across nine territories, with multiple creative partnerships UK SE/DK/NO IL Hong Kong USA BE/NL D/AU UAE Page 4

5 1 Key group metrics ~90% of portfolio companies expected to be profitable by 2014* Revenue growth rate of +150% since 2010** 800+ formats in development vs. 250 in pitch-ready titles vs. 125 in new titles (fiction, factual, formats, digital) Star studded drama & entertainment shows (Dustin Hoffman, Judi Dench, Nigella Lawson, Anthony Bourdain, David Tennant) 600+ titles in catalogue vs. 500 in 2011 Content sold to 180 countries vs. 130 in 2011 *Positive EBITDA; ** Entity view Page 5

6 1 Red Arrow is a Top 10 TV production and distribution player Rank Independent TV production group 1 Rank 2 TV distribution company FremantleMedia Endemol Shine All3Media Zodiak Banijay Eyeworks Red Arrow Entertainment Group Talpa Tinopolis BBC Worldwide FremantleMedia ITV Global Entertainment Endemol (EWD) Red Arrow International Zodiak Rights Shine All3Media Based on est. revenues. Source: RAEG analysis and company information 1) Defined as working independently regardless of ownership by a broadcaster group or studio. Based on gross revenues. Source: RAEG analysis and company information 2) Cut-off at EUR 50m gross revenues. Page 6

7 1 80% of Red Arrow s total revenues independent from ProSiebenSat.1 External revenues Internal revenues E 32% 31% 19% 68% 69% 81% Page 7

8 1 Travelling format success achieved with both in-house and 3 rd -party properties 140+ COUNTRIES 25+ COUNTRIES 25+ COUNTRIES 130+ COUNTRIES 25+ COUNTRIES 20+ COUNTRIES 30+ COUNTRIES 25+ COUNTRIES 15+ COUNTRIES *Grey: in-house properties; Red: third-party properties Page 8

9 1 Strong production portfolio of top returning shows English-speaking territories Other territories 4 SEASONS 2 SEASONS 6 SEASONS 2 SEASONS 3 SEASONS 2 SEASONS 5 SEASONS 2 SEASONS 7 SEASONS 5 SEASONS 7 SEASONS 3 SEASONS Note: MMC (Sat.1, Germany) 6 seasons incl. specials Page 9

10 1 Recognized creative excellence: four EMMY nominations for Red Arrow shows Betty White s Off Their Rockers (Kinetic Content): Best Reality Host (Betty White) THE TASTE (Kinetic Content): Best Reality Host (Anthony Bourdain) Restless (Endor Productions): Outstanding Supporting Actress In A Miniseries (Charlotte Rampling) AND Best Original Score Page 10

11 1 Our formula for success Present in markets that drive global content trends Red Arrow production companies are collaborative creative engines, not just execution houses Red Arrow s distribution model stresses balance between original & 3rd-party IP All group members understand and believe in the group model they are here for the right reasons Red Arrow s collaborative culture is attractive to the strongest creative partners in the most important markets Page 11

12 2 Growth Strategy Page 12

13 2 Red Arrow s growth story & strategy Since 2010 Since Powerful footprint in key production territories established Consolidation and continuous portfolio optimization Continue to build scale & drive best-in-class performance 16 production assets across nine territories Strategic focus on key TV markets USA & UK Organic growth in key markets Fresh & attractive content Targeted strategic partnerships Distribution platform expansion Page 13

14 2 Organic growth in key markets via intra-group partnerships 115m TV households EUR 16.3bn production spend 27m TV households EUR 2.6bn production spend Benefit from mutual support and expertise Meet high entertainment, reality & factual programming demand in the US & UK markets Leverage existing strong relationships with local broadcasters Source: TV households: Nielsen / BARB, Production spend: estimated size excl. news and sports rights, 2011 Page 14

15 2 Rapid growth in Asia since launch of Hong Kong office: Red Arrow International is a Top 3 distributor to China to CCTV1 to Guang Dong TV to An Hui TV to Hei Long Jiang TV to Hei Long Jiang TV to CCTV2 Heilong TV (Fake Reaction, What If) contracts being finalized Page 15

16 2 Red Arrow s content portfolio is consistent with global trends & channel demand across all genres Reality/factual/docu 60% 16% Entertainment shows Scripted series 13% 11% TV movies Data in percent: Global market pick-up mix by genre. Page 16

17 2 Red Arrow s portfolio is focused on popular themes within each broader genre category Battle of the coaches Talent shows where the coaches/ mentors battle each other in their profession. E.g.: The Face (Shine International) The Taste (RAEG) Cooking for money* How to make money out of a dish by selling it as an own brand. E.g.: Supermarket Superstar (All3Media) Kids talent Children talent competitions. E.g.: The Voice Kids (Talpa International) Kiddy Contest ** (RAEG) Old vs. young The generation gap as the USP. E.g.: The Gran Plan (Armoza Formats) Grading Mom and Dad (Endemol) Benidorm Bastards (RAEG) Fixed camera docs Observational docs in which people are being followed by a camera at all times. E.g.: Barely Legal Drivers (Warner Bros.) Birth Day (RAEG) The new handymen Searching for new DIY talents. E.g.: Kitchen Gardeners (BBC Worldwide) Drill School, Happy Housewife (RAEG) *In the case of "cooking for money" trend, RA owns the most successful fresh cooking competition property (The Taste). RA aims to incorporate such sub trends in its major format to keep it fresh & competitive, as opposed to cannibalising with something in the same field. **Contract on-hold Page 17

18 2 Attractive commercial partnerships expand reach of Red Arrow s portfolio UK broadcaster co-development/production deal Digital/multi-screen/cross media partnership Middle East co-production partnership STV agreement being finalized Page 18

19 2 Partnership case study: SCREENZ Powerful creative partnership with second-screen expert Leading cross-media specialist Develops & commercializes second screen products to revolutionize traditional broadcasting Extensive portfolio incl. fully developed, ready-to-go apps for television shows Created touchless app for RA s cooking competition show THE TASTE (ABC) Page 19

20 2 Expanding distribution reach Strong traction with digital platform players Amazon agreement in negotiation Page 20

21 3 Upcoming Hits & Highlights Page 21

22 3 THE TASTE: Emerging home-grown hit global format Sold to 3 countries in 2012; 25 countries as of 2013 More than 25 countries, incl. Page 22

23 3 HARRY BOSCH: Ground-breaking US scripted project in pre-production Based on the collection of 19 books from best-selling author Michael Connelly More than 55 million copies sold worldwide Show runner/writer Eric Overmyer The Wire (HBO), Law & Order (NBC) Executive producer Henrik Bastin - My Generation (ABC), Happy Hearts (A&E), The Killing (AMC) Produced by Fabrik Entertainment Distributed by Red Arrow International Page 23

24 3 THE LAST COP goes international Strong launch for leading French broadcaster TF1, outperforming the average share of local series by 12% First adaptation of a German format for France s TF1 In development for TNT with executive producer Sylvester Stallone 4 seasons of stellar ratings on SAT.1, a 5th season commissioned and pick-ups in 13 countries Page 24

25 3 Strategic priorities Firmly establish Red Arrow as a robust top-line, EBITDA & FCF vehicle Continue to build scale across all key markets (US, UK, etc.) via M&A and/or territory-specific co-production partnerships Penetrate key markets with English-language product boosted by an extensive deficit funding/co-financing model Establish production presence on multiple platforms Access additional 3rd-party content through distributor partnerships driven by Red Arrow International s global sales reach Page 25

26 3 Summary In under four years, Red Arrow Entertainment Group has become a global player with growing independence Strong revenue growth & improving profitability highlight positive group momentum Group creative output achieving international success & creative recognition Go-forward growth strategy driven by key market growth, strategic partnerships, content balance and distribution expansion Page 26

27 Disclaimer This presentation contains "forward looking statements" regarding ProSiebenSat.1 Media AG ("ProSiebenSat.1") or ProSiebenSat.1 Group, including opinions, estimates and projections regarding ProSiebenSat.1's or ProSiebenSat.1 Group's financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements 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. These forward looking statements speak only as of the date of this presentation and are 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. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning ProSiebenSat.1 or ProSiebenSat.1 Group. ProSiebenSat.1 undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. Page 27