Viewing the Future On the Way to become a Television and Digital Entertainment Powerhouse by 2015

Transcription

1 Capital Markets Day ProSiebenSat.1 Media AG Viewing the Future On the Way to become a Television and Digital Entertainment Powerhouse by 2015 Thomas Ebeling, October 5, 2011 Keynote Page 1

2 An attractive company a great future People need entertainment Customers need TV advertising Dynamic growth outlook good profitability Low P/E Attractive dividend yield De-risked company Great creative people Page 2

3 Significant progress in restructuring the Group Portfolio Sat.1 moved to Munich, integration of radio in Nordic N24 sold, call TV 9live terminated Finance Divesture of BE/NL at attractive premium Cost reduction from 2008 to 2009 of 221m EUR (10%) Reduction of leverage and amended/extended loan agreement until 2016 Growth Identification and acceleration of growth in new areas New well targeted channels launched in Germany, Nordic and Hungary Page 3

4 Delivering strong performance Continued strong EBITDA growth from of 250m EUR (+38%) Industry leading EBITDA margin of 30% Record year ahead A leading competitive position Page 4

5 3 key messages I Fundamentals of our core TV business are intact II Attractive growth opportunities exist III A de-risked company Page 5

6 I. Screen sales up 3D-TV HDTV Hybrid-TV + 13% 13.7 m 450, % + 16% 7.2 m 9.6 m Page 6 Sales Television, PCs and smartphones are estimated by EITO (European Information Technology Observatory), in cooperation with Bitkom

7 I. Unchanged power of TV as lead medium Average daily usage in Germany In minutes, years min min TV Print Online 27 min. Note: Excl. passive Online usage starting from 2008 (18% of total Online usage) Source: TimeBudget / SevenOne Media / forsa. / GfK ENIGMA / mindline, Basis: 2,021 interviewees (14-49 years). Note: Print including Magazines and Newspapers. Page 7

8 I. Relevant Set of 6 TV channels in Germany Received, in use and in Relevant Set - broadcast stations 73 Broadcast stations receivable only 14 broadcast stations in use (min. 10min s per month) Only 6 channels in Relevant Set (80% share of viewing) Base: All television households in Germany (D + EU), viewers with at least 5 minutes daily TV Source: AGF/GfK Fernsehforschung / TV Scope / SPSS / GfK und SevenOne Media, Audience Research (DJ) Page 8

9 I. TV advertising is working superbly with highest ROI Stronger brand image / power Higher probability of purchase TV stimulates online shopping Brands with high TV presence twice as frequently in consumer s relevant set Probability of purchase is 35% higher two days after TV spot 73% more consumers if TV and Internet combined Source: GfK-study Markenmotor TV / AC Nielsen / JupiterResearch Consumer Survey. Page 9

10 II. Four pillars of attractive growth opportunities 1 Broadcasting German-speaking 22 Broadcasting International 3 Digital & Adjacent 4 Content Production & Global Sales Strenghten position in core market with competitive investments, new channels and technologies, innovative formats & sales strategies Exploit international opportunities and focus on big and/or high growth markets Drive diversification by leveraging idle adinventory, TV reach and small cash investments to build-up portfolio of new growth opportunities Continue to build production business internationally through partnerships & worldwide sales excellence Sound finances, cost efficiency and best practice organization Page 10

11 1. Future growth potential of TV in Germany 1. Print cannibalization/media mix 2. Pricing/ad intensity recovery 3. Large HD & 3D screens 4. HbbTV 5. Combination TV/Online/Mobile 6. Regional advertising targeting 7. Ban public sponsoring/advertising 8. New market segments Upside potential of m EUR ad revenues plus > 50m EUR carriage fee upside until 2015 Page 11

12 2. Continued growth in Nordic expected Ad sale & distribution Grow share of viewing and share of money Capture regional ads Expand Danish distribution model Online & diversification Diversify in growth markets TV/radio Synergies through integration in TV Cost synergies Realize pan Nordic synergies (Playout, programming) Nordic revenue growth potential of high single digit CAGR until 2015 Source: P7S1 own estimates Page 12

13 2. International expansion strategy* 1. Focus on high growth markets 2. Identify fairly valued companies with upside operational performance potential 3. Opportunistic about M&A approach Aiming to capitalize on our proven skills to significantly improve operational and financial performance of broadcasting assets Page 13 * Not included in revenue potentials

14 3. Significant organic growth in Digital & Adjacent (in EUR m) >400m CAGR of >15% > m* > Digital entertainment Venture & Commerce 2015e Grow revenues with > 20% CAGR until 2015 *excluding 9live Page 14

15 3. Digital & Adjacent M&A approach* 1 2 Leveraging zero-cost TV ads to create substantial value No significant cash investment 3 Focus on digital entertainment companies where Brand building makes a difference Competitive advantage not entirely driven by technology Not dependent on internet search/social platforms Page 15 * Not included in revenue potentials

16 4. Expanding Red Arrow Content Drive the flow of international content via partnerships with top-tier creative talent Production Continue to push talent-driven organic growth, underlined by smart investments in key markets Distribution Expand presence in emerging markets and leverage an internationally diverse sales team Revenue CAGR aspiration of >20%* for *Red Arrow total revenues Page 16

17 III. A de-risked company 1 Reduced leverage (2.2x) and good liquidity 2 3 Loan agreement amended and extended until 2016 Termination of expensive, long-term format commitments (e.g. CL/EL) 4 Strong profitability with industry leading margin 5 Core business cost optimization possible Page 17

18 Strategic goals to 2015 Maintain leading competitive position Expand TV market, drive carriage fees Strengthen perception of TV being most efficient medium Increase share of revenue outside broadcasting Germany Become a leader in online (video, games) Grow online venture & commerce business Achieve a good position in production Expand in growth markets outside Europe Further improve efficiencies Page 18

19 Financial Goals to 2015 Generate almost 50% of our revenues outside classical German TV advertising by 2015 Continue to operate at industry leading margin level Grow revenues in line with market in German FTA, all other segments combined targeting double digit growth Leverage level of 1.5x to 2.5x Page 19

20 At least 750m EUR Growth potential possible until 2015 (in EUR m) >100 >750 >250 >150 >250 >150 Germany >50 AUT/CH > 600m EUR (CAGR >10%) >50 Carriage Fee outside TV Ad Germany 2010 Broadcasting German- Speaking* Broadcasting International Digital/ Adjacent Content Production** 2015e Conservative Group revenue growth: At least mid-single digit * Implied CAGR TV ad Germany: low single digit **Red Arrow external revenues only Page 20

21 Disclaimer This presentation contains "forward looking statements" regarding ProSiebenSat.1 Media AG ("ProSiebenSat.1 AG"), its subsidiaries/affiliates and/or ProSiebenSat.1 Group as a whole (all hereinafter collectively referred to as P7S1 Group ), including opinions, estimates and projections regarding P7S1 Group's financial position, business strategy, plans and objectives of management and future operations and including opinions, estimates and projections regarding the markets in which it presently operates or in which it expects to operate in the future. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of P7S1 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, express or implied, is made by ProSiebenSat.1, its subsidiaries/affiliates or P7S1 Group as a whole 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 P7S1 Group. ProSiebenSat.1 and its subsidiaries/affiliates undertake 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 21