Financial Year Investors and Analysts Conference Call. March 3, 2011

Transcription

1 Financial Year 21 Investors and Analysts Conference Call March 3, 211

2 21 at a glance Thomas Ebeling, CEO

3 Financials 21: A great year for ProSiebenSat.1 Consolidated Revenues EUR 3.bn +8.7% Recurring EBITDA EUR 95.9m Net Income EUR 312.7m Share Price EUR 22.5 at year-end +3.1% % % I page 3 ProSiebenSat.1 Media AG March Figures 21 unaudited. Recurring EBITDA: EBITDA before non-recurring items. Net income: net income after non-controlling interests.

4 Operations 21: Strong positions in viewer and ad markets Viewer markets Improved ratings in most of our international markets German TV stations hold their ground in the competitive environment of Winter Olympics and Soccer World Cup TV ad markets Most countries with revenue increase in a growing TV ad market Sustained leading position in core market Germany I page 4 ProSiebenSat.1 Media AG March

5 Operations 21: Portfolio and growth strategy on track Portfolio strategy New Free TV stations successfully launched Completion of strategic review in Germany with sale of N24 Review of our international portfolio (BE/NL, Nordic) started in December Growth strategy Online business and new growth initiatives like M4R/ES grew substantially 1% acquisition of maxdome Red Arrow expanded internationally I page 5 ProSiebenSat.1 Media AG March

6 Financials Axel Salzmann, CFO

7 Q4 21: Revenue growth is the driver for higher recurring EBITDA Revenues [EURm] Recurring EBITDA [EURm] +8.4% +16.7% 1, Q4 29 Q4 21 Q4 29 Q4 21 Recurring EBITDA margin increased by 2.7%pts to 37.6% I page 7 ProSiebenSat.1 Media AG March

8 Q4 21: Strong revenue growth in Free TV segments Free TV German-speaking Revenues [EURm] Free TV International Revenues [EURm] Diversification Revenues [EURm] % % % Q4 29 Q4 21 Q4 29 Q4 21 Q4 29 Q4 21 Higher advertising revenues in growing market environment Increase of advertising and carriage revenues in most markets Positive FX effects Last year s performance influenced by back-loaded revenue recognition I page 8 ProSiebenSat.1 Media AG March

9 FY 21: Net income doubled, margin rises to 3.2 percent Revenues [EURm] Recurring EBITDA [EURm] Underlying net income [EURm] +8.7% 3, 2,76.8 3,. 1,2 +3.1% % , , Recurring EBITDA margin increased by 5%pts to 3.2% I page 9 ProSiebenSat.1 Media AG March Underlying net income: Calculated as consolidated net income of EUR 312.7m (29: EUR 146.6m) plus EUR 44.5m PPA (after tax) and others (29: EUR 4.2m)

10 FY 21: Continued cost management - operating costs almost stable Operating costs* [EURm] Non-recurring expenses [EURm] 2, 1,5 1, % % 75 Including 2,77.5 2,15.2 EUR 5m 5 due to sale 25 of N24 Depreciation and amortization [EURm] % I page 1 ProSiebenSat.1 Media AG March *Total. costs of EUR 2,341.7m (29: EUR 2,31,7m) excl. D&A and non-recurring expenses

11 FY 21: Revenue increase in all segments Free TV German-speaking Revenues [EURm] Free TV International Revenues [EURm] Diversification Revenues [EURm] +9.7% +8.4% +4.4% 2, 1,5 1,698. 1, , Higher advertising revenues in growing market environment Revenue increase in all three markets - Germany, Austria and Switzerland Increase of advertising revenues in most markets Growing distribution income in Nordic and Be/NL Positive FX effect Strong growth from online, commerce, music and mobile business Print stable, Radio up Call TV and Teletext revenues decreasing I page 11 ProSiebenSat.1 Media AG March

12 Leverage significantly reduced from 4.7x to 3.3x Total debt and net debt [EURm] , RCF / Other** 231 Term Loans*** 3,531m Total loans & borrowings Cash & Cash equivalents 3,21 Net debt Favorable debt financing with no imminent refinancing requirement: EUR 4.1bn senior secured credit facilities EUR 3.56bn term loans with bullet repayment in 214/15 EUR 582m revolving credit facility (maturity 214) Net debt reduced to EUR 3.21bn Net debt decreased by EUR 273.6m vs. 31/12/29 RCF draw down reduced to EUR 23.m (29: EUR 497.2m) Free cash flow of EUR 282.2m (29: EUR 163.6m) Leverage* improved to 3.3x (29: 4.7x) LTM recurring EBITDA of EUR 95.9m EUR 74.7m of cash on balance sheet 31/12/29: EUR 737.4m cash on balance sheet I page 12 ProSiebenSat.1 Media AG March * Net debt/ltm recurring EBITDA. ** Thereof EUR 23m RCF. *** Term Loan (TLB/TLC) notional EUR 3.56bn net of EUR 29m finance costs.

13 Dividend proposal 21 for the AGM by the Executive Board 21 Dividend Proposal Per preference share EUR 1.14 Per common share EUR 1.12 Total dividend payout** EUR 24.8m Payout ratio*** 67.4% AGM on July 1, 211 Dividend Payment on July 4, 211 In EURm Net profit* PPA (after tax) Underlying net income EPS underlying (preference share) I page 13 ProSiebenSat.1 Media AG March PPA = Purchase price allocation amortization. * Net profit (after non-controlling interests). ** Dividend payout calculated on the basis of common stock and preference shares excluding treasury stock. *** Versus underlying net income.

14 Our operations Thomas Ebeling, CEO

15 Our Four Pillar Growth strategy Diversification and new growth initiatives Free TV and advertising New media & pay / distribution Music, commerce & ventures Content, production & global sales I page 15 ProSiebenSat.1 Media AG March

16 21: Good ratings in German-speaking countries TV audience shares 21 vs 29 [%] Germany Austria Switzerland I page 16 ProSiebenSat.1 Media AG March Basis: All German TV households (Germany + EU), 24 hours (Mon-Sun) years. Excl. N24. Source: AGF/GfK Fernsehforschung / TV Scope / SevenOne Media Audience Research. A+CH: 24 hours. *Switzerland: The audience shares until December 31, 29 are based on the "substitution method"; starting January 1, 21 all data refer to the international used "daily emphasis". Because of additional adjustments in the Telecontrol-Panel, the shares are not comparable to former years according to Publica Data AG.

17 Outlook German TV 211: Five Key Messages We optimize our program investments according to advertisers demand and start our new seasons and strong returning shows now. We have refined our Program Grids and create compelling and complementary Entertainment Offerings for TV Viewers. We have launched Sixx Germany s one and only female channel positioned as most wanted female TV brand unrivaled with 8% female viewers. In addition to our massive US Fiction line up through our Studio output deals, we have refined our Format Development Processes and built an attractive line-up of new commissioned format ideas through Content Pitches with Germany s top producers. We have continued to improve our organizational effectiveness and are strengthening our TV Team and hired talents (Chief Program Planer, Key Reality-Format Creatives). I page 17 ProSiebenSat.1 Media AG March

18 Germany: Maintained leading position in a growing TV advertising market Gross TV ad investments 21 vs 29 [EURm] Gross TV ad market share ProSiebenSat.1 21 vs 29 [%-points] +16.2% Total TV ad market +18.% ProSiebenSat %pt TV ad share of total gross ad market increased from 41.6% to 43.7% I page 18 ProSiebenSat.1 Media AG March Source: Nielsen Media Research. SevenOne Media incl. 9Live + N24.

19 Higher investments across all major advertising categories Top gross TV advertising categories in Germany EURm, Change 21 vs 29 [%] Total TV Food Cosmetics and Toiletries Media and Publishing Trade and Shipment Beverages Motor Vehicles Business Services Telecommunication Finance Pharmacy 1,384 1, ,842 1, % 4.6% 12.6% 2.% 26.8% 11.6% 1.9% 43.4% 13.% 24.6% 2.6% I page 19 ProSiebenSat.1 Media AG March Source: Nielsen Media Research.

20 Growing importance of TV advertising within the media mix Media split of relevant advertising categories in Germany on a gross basis 21 vs 29 [EURm] Food TV Online Print Radio.1 Cinema 8.2 Outdoor Cosmetics and toiletries TV Online Print Radio Cinema Outdoor Trade and shipment TV 38.9 Online Print 3.3 Radio -.9 Cinema -3.2 Outdoor I page 2 ProSiebenSat.1 Media AG March Source:. Nielsen Media Research.

21 TV and Internet record about 9% of ad market growth Gross advertising spendings in Germany 21 vs 29 [EURm] Share in market growth [%] Market TV Newspaper , , Magazin Journal Radio Outdoor Cinema Internet I page 21 ProSiebenSat.1 Media AG March Source:. Nielsen Media Research.

22 TV and internet are the only media with increasing shares within last three years Gross share of advertising 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% 5.8%.3% 3.6% 4.%.3% 3.9% 5.8% 5.5% 1.9% 1.7% 17.6% 15.2% 14.3% 23.5% 23.5% 21.2% 6.6% 7.7% 9.5% 4.8% 41.6% 43.7%.3% 1.6% Cinema Outdoor Radio Journals Magazines Newspaper Internet TV % Market growth + 1.1% +.9% + 1.8% I page 22 ProSiebenSat.1 Media AG March Source: Nielsen Media Research.

23 No.1 AdVoD and No.3 online marketer Gross video ad revenues in Germany 21 [EURm], in-stream only Top online marketers in Germany 21 [Unique Users in m per month, users aged 14+]* SevenOne Media InteractiveMedia CCSP IP Deutschland Tomorrow Focus 3.74 InteractiveMedia 2.12 SevenOne Media 27.3 TomorrowFocus 1.95 United Internet Media Microsoft Adv IP Deutschland Total gross online ad investments : +35.5% I page 23 ProSiebenSat.1 Media AG March Users aged 14+: 5.67m = 71.9% of all Germans. Source: AGOF internet facts Q3/21, Nielsen Media Research (data status ). *Excluding search.

24 21: Improved ratings in most international viewer markets Netherlands TV audience shares [%] Norway Sweden Hungary Belgium Denmark Finland Romania I page 24 ProSiebenSat.1 Media AG March Figures refer to extended prime time audience shares. NL: SBS 6, NET 5, Veronica; 2-49 years / BE:: VT4, VIJFtv; years; Belgian figures refer to the region of Flanders / HU: TV2, since January 21 FEM3; years / RO: Prima TV, Kiss TV; years; figures are based on the urban population / SE: Kanal 5, Kanal 9; years / DK: Kanal 4, Kanal 5, 6 eren, The Voice; 15-5 years in commercial universe / NO: TV Norge, FEM, since November MAX, The Voice; years / FI: The Voice/TV Viisi; years.

25 Strong revenue growth in Nordic region TV ad market 21 vs 29 [%] BE NL DK FI NO SE HU RO P7S1 share of advertising P7S1 revenue performance I page 25 ProSiebenSat.1 Media AG March Share. of advertising refers to net figures, own estimates based on available market data. Revenues: Cash advertising revenues include: spotsales + sponsoring/billboarding + advertising funded programming.

26 Good progress in New Media & Pay / Distribution Additional revenues through pay TV & re-transmission fees Launch of HD+ channels in German core market Sat.1 Comedy and kabel eins classics with more than 2m subscribers ProSiebenSat.1 launched HbbTV as the first private broadcaster in Germany Premium video strategy pays off My Video expanded Number of premium videos increased from 75, to 125, User access to online videos has tripled 8.58 million unique users maxdome sustained status as No.1 VoD platform Complete takeover of platform, 1&1 remains distribution partner New cooperation with CBS OTT partnerships signed with Samsung, TechniSat, Humax and LG I page 26 ProSiebenSat.1 Media AG March Source:. AGOF internet facts 3 / 21

27 Music, Commerce & Ventures is developing well starwatch Entertainment 21 3 artists in portfolio, 12 with gold and platinum status 26 albums and singles published starwatch enters into two new markets in 21 Network with live entertainment companies built Start of talent management platform TMA M4R/ES Convert unsold media into revenues About 4 deals negotiated, 2 deals are currently active Portfolio contains commerce platforms, beauty and lifestyle products I page 27 ProSiebenSat.1 Media AG March Source:. media control

28 Successes of Red Arrow with expansion of format sales and global productions Redseven: My Man Can (SAT.1) Productions Kinetic Content: You Deserve It! (Dick de Rijk, ABC) Snowman Productions SE: The Successor / Uri Geller (Kanal 5) Danni Lowinski sold to CBS: First US remake deal of German series Sales My Man Can: Sold to 39 countries; most successful launch of an international entertainment format in China in 21 Benidorm Bastards sold to 32 countries incl. France, Spain, Sweden, Norway and S. Korea I page 28 ProSiebenSat.1 Media AG March

29 Outlook and strategy update Thomas Ebeling, CEO

30 1. Positive driver for our TV business 1. TV remains key advertising medium Positive economic trends in most markets Integrated and complementary station positioning enhanced by new channels and formats 4. Net pricing growth in most markets 5. Synergies with online I page 3 ProSiebenSat.1 Media AG March

31 2. We are well positioned to lead the OTT market in Germany Free Pay Example: Germany Managed platforms Free TV market size 21: ~EUR 4bn Pay TV market size 21: ~ EUR 1bn New market players mainly enter pay segments OTT AdVoD market size 21: ~ EUR.5bn PayVoD market size 21: ~ EUR.5bn New players with limited access to premium and exclusive content I page 31 ProSiebenSat.1 Media AG March Market volume figures are P7S1 estimates.

32 2. with strong brands Ad VoD ProSiebenSat.1 network with about 1m premium video views per months with 8.58 m Unique Users Largest professional AdVoD network MyVideo largest portal for professional AdVoD content New sales cooperation expected Pay VoD Over 35, titles on 1% acquisition of maxdome in January 211 Market leader in PayVoD market in 211 I page 32 ProSiebenSat.1 Media AG March Source: video views = P7S1 online video tracking tools mainly Omniture; MyVideo UUs = AGOF Q3/21.

33 2. Ongoing HD roll-out to cable and IPTV platforms in Germany Successful launch of HD+ Satellite services with Astra More than 1.5 m HD+ smartcards delivered to manufacturers and ~7k HD receivers/ci modules sold in the market Conversion rate after free period of one year better than expected Deals already signed Negotiations in advanced stages HD on other platforms I page 33 ProSiebenSat.1 Media AG March

34 2. Multi-year distribution deals will drive our international revenue performance Share of carriage fees 21 Key activities 21/211 51% 17% 23% Renewal of existing multi-year agreements with operators Launch of new channel (MAX in November 21) Close of new deals with cable operators Renewal of existing multi-year agreements with operators I page 34 ProSiebenSat.1 Media AG March On. basis of contribution to external revenues within Free TV International segment.

35 3. Main business initiatives expanding music, live and artist management Examples 211 Signing new artists Roxette, Guano Apes and Rumer Increase label and distribution deals Top ten rankings in February: Lena, Roxette and Max Raabe Create own events / partner with stand alone events Udo Lindenberg-Musical, Starlight Express, Sister Act to be continued in 211 I page 35 ProSiebenSat.1 Media AG March

36 3. New ways to capitalize our ad inventory in Germany Digital Products Media for revenue and equity share deals SevenVentures launched Create own brands and license products ~4 M4R/ES deals so far Design Fashion Accessories Travel, Leisure Beauty Wellness OTC I page 36 ProSiebenSat.1 Media AG March

37 4. Increased competitiveness and new revenue growth through strong content unit UK (211) Sweden/ Denmark (21/211) Snowman Productions Germany/ Austria Red Arrow 21/211 at a glance More than 3 formats on air USA (21) Belgium/ Netherlands (21) Australia (21) Co-production Partnership Formats sold in more than 15 countries Over 12 active development formats I page 37 ProSiebenSat.1 Media AG March

38 4. Expansion of production and development partnerships in most significant territories Expand network in order to accelerate format deals Production of English fiction content Distribution of English formats for third parties I page 38 ProSiebenSat.1 Media AG March

39 Positive financial outlook on financial year 211 Positive macroeconomic conditions in most markets Revenue and earnings growth across all segments Free cash flow improvement Net debt and leverage reduction I page 39 ProSiebenSat.1 Media AG March

40 I page 4 ProSiebenSat.1 Media AG March

41 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, express 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. I page 41 ProSiebenSat.1 Media AG March

42 ProSiebenSat.1 Media AG Investor Relations Medienallee 7 D Unterföhring Tel. +49/89/ I page 42 ProSiebenSat.1 Media AG March