COMPANY PRESENTATION January 2018

Transcription

1 COMPANY PRESENTATION January 2018

2 PROSIEBENSAT.1 AT A GLANCE 2009 Q LTM CAGR (2009 Q LTM) Revenues 1) 1,918m 4,009m +10% Adjusted EBITDA 1) 506m 1,052m +10% Adjusted net income 187m 557m +15% Revenue share outside TV adv. 11% 51% total 09-17: +40%pts Market capitalization 3) 1,764m 6,715m +19% Share price 3) % EV/EBITDA multiple 2) 8.1x 8.4x total 09-17: +0.3x Leverage ratio 3) 4.7x 1.8x total 09-17: -2.9x Dividend paid 3,4) 2m 435m total 09-17: 2.9bn 1) Excluding International TV and Diversification (SBS Group) 2) EV/EBITDA multiple as reported by Bloomberg 3) All data referring to end of period 4) Q LTM: 2016 dividend paid in

3 CONTINUED DIVERSIFICATION AND TRANSFORMATION Broadcasting Adjacent & Production Digital Entertainment Digital Commerce & Wellbeing AdTech & Data GOAL Accelerate sustainable diversification leveraging core TV business and creating synergies 3

4 STRONG COMPETITIVE POSITION #1 Leadership in TV audience share & ad monetization in GSA 1) Top 10 Independent production company 2) #3 Leading MCN 3) #1 Strong set of leading commerce assets 4) in GSA 1) #1 Leading media investor #1 # m 88% Leader in Addressable TV Germany-based full AdTech stack Members in European Media Alliance User profiles 5) from desktop, mobile & HbbTV YoY growth of Red Button Portal users 1) GSA = Germany, Switzerland and Austria 2) Internal estimate based on industry figures 3) Leading MCN (excl. music business; focus on U.S. and Europe) 4) For detailed overview of commerce asset market positions see commerce deep dive 5) Excl. app reach 4

5 DIVERSIFICATION OF GROUP REVENUE PROFILE ENABLED STRONG DEVELOPMENT GROUP REVENUES 2011 EUR 2,199m CAGR +11% Q LTM EUR 4,009m 3% 3% 19% 81% +11% +30% +2% Group non-tv advertising TV advertising 21% 10% 51% 1% 2% 8% 3% 49% TV advertising Non-TV advertising TV advertising AdVoD Adjacent Commerce verticals Other Distribution PayVoD CP&GS SevenVentures Note: Continuing operations (2011) 5

6 STEADY GROWTH OF BOTH REVENUE AND ADJUSTED EBITDA LTM REVENUES LTM ADJ. EBITDA / ADJ. EBITDA MARGIN [in EUR m] +11% [in EUR m, %] CAGR 4,250 3,750 1,100 1,000 Mix effect +7% CAGR 35% 30% 25% 3,250 2, % 15% 2, % 5% 1, Q LTM 700 0% Q LTM Adjusted EBITDA (left scale) Adjusted EBITDA margin (right scale) Note: Continuing operations (2011) 6

7 STEADILY GROWING EARNINGS AND DIVIDEND PAYMENTS WITH ATTRACTIVE DIVIDEND YIELD ADJUSTED NET INCOME & DIVIDEND DIVIDEND YIELD [in EUR m] [Dividend consensus estimate 2017E] ~290 2) %/+12% CAGR 1) EUR 2.9bn dividends paid since ) ~3% ~7% Q LTM Adjusted net income Dividend payment DAX ProSiebenSat.1 Media Note: Continuing operations (2011) 1) Underlying/adjusted net income CAGR 2011-Q LTM +13%, dividend CAGR % (note: underlying net income changed to adjusted net income in FY 2017) 2) Normalized dividend estimate based on average dividend pay-out ratio of c. 82%, actual dividend payout of EUR 1,201.4m included disposal related dividend increase 3) Bloomberg consensus dividend estimates 2017E as of 11/30/2017 7

8 STRONG FCF GENERATION WITH FINANCIAL LEVERAGE MOVING TOWARDS LOWER END OF TARGETED RANGE FCF BEFORE M&A AND DIVIDEND PAYMENT FINANCIAL LEVERAGE [in EUR m] [net debt/adjusted EBITDA] % CAGR x as of Q LTM Q LTM Q LTM Upper end (2.5x) Financial leverage Lower end (1.5x) Note: Continuing operations (2011); recurring EBITDA changed to adjusted EBITDA in FY

9 INTENSIFIED M&A ACTIVITY SINCE 2015 PROVEN BY ATTRACTIVE M&A FCF ROI NET M&A CAPEX M&A FCF ROI 1) [in EUR m] ~12% ~10% ~10% incl. proceeds excl M E 1) FCF ROI calculated as proportional FCF 2017 estimate (proportional to ownership share) divided by invested cash to date based on active portfolio (incl. budgeted IC loans at year-end, loan redemption and capital increases), 2017E FCF ROI excluding etraveli (deconsolidated in Q3 2017). FCF as external FCF excluding internal TV media expenses, as per 2017 estimates (Smartstream FCF on entity basis). FCF excludes cashflows from obtaining control of subsidiaries and other businesses. Excludes companies that will not have been fully consolidated for 12 months in

10 PORTFOLIO MANAGEMENT STRATEGY: BUY AND KEEP IS MAIN INTENT STRATEGIC INVESTMENTS High TV responsiveness Significant synergies High omnichannel potential Local hero potential RATIONALE FOR SELECTIVE DIVESTMENTS Not best owner anymore Significant value creation opportunity Asset-light business model 10

11 DIVERSIFICATION FURTHER ADVANCED M&A AS A KEY STRATEGIC ELEMENT ENTERTAINMENT Drive growth within Entertainment by expanding services along advertising value chain strengthening AdTech stack leveraging performance-marketingoriented technology in Addressable TV CONTENT PRODUCTION & GLOBAL SALES Gain scale to become stronger partner for customers Strengthen distribution capabilities to monetize IP Internationalize MCN footprint COMMERCE Drive consolidation in GSA 1) region Seize European opportunity based on growth potential Capture window of opportunity for European consolidation in selective verticals exemplary exemplary exemplary Future % of M&A spend ~20% 2) ~20 targets ~20% 2) ~10 targets ~60% 2) ~50 targets Note: Buzzbird and AdClear signed, subject to closing 1) GSA = Germany, Switzerland and Austria 2) Estimated allocation of future M&A spend to segments 11

12 FUTURE DEPLOYMENT OF CAPITAL FINANCIAL POLICY DEPLOYMENT OF CAPITAL (INCL. HISTORICAL EXAMPLES) SUSTAINABLE CAPITAL DEPLOYMENT WHILST ADHERING TO OUR KEY FINANCIAL POLICY Bolt-on M&A Strategic minorities Minorities/ put option liabilities Organic growth investments EUR >400m indicative future spend Addressable TV Financial leverage: 1.5x 2.5x Dividend pay-out ratio 1) : 80-90% Option to buy back shares and/or reduce gross debt 1) Based on adjusted net income attributable to P7S1 shareholders 12

13 CO-INVESTMENTS TO ACCELERATE GROWTH IN COMMERCE AND CONTENT PRODUCTION GROWTH SYNERGIES VALUATION Co-investors contribute strategic value, potentially assets and cash to further drive organic & inorganic growth Growth of Commerce and Content Production leads to increasing Group synergies (i.e., media, data, content) Co-investments to prove value creation in the past and current attractive valuation of our businesses 13

14 Ambition ACCELERATE VALUE AND FOCUS THROUGH THREE PURE PLAY PILLARS P7S1 MEDIA SE ENTERTAINMENT RED ARROW STUDIOS NCG NUCOM GROUP (Entertainment) (Content Production & Global Sales) (Commerce) Leading European multi-channel entertainment products and ad sales house Leading global Content, Talent & IP company #1 omnichannel platform for consumer services & lifestyle brands in Europe 14

15 ENTERTAINMENT COST SAVINGS WILL ENABLE GROWTH INVESTMENTS 1. ENTERTAINMENT COST SAVINGS Integrated teams for traditional TV & digital video Consolidation of sales units (TV, Digital, Ventures etc.) 2. Support of key processes by technology & automation GROWTH INVESTMENTS Program grid investments with gradual shift to local content AdTech and sales adjacencies Data and tech capabilities Net savings of EUR >50m by 2019/20 1) 1) vs. addressable cost base as of H LTM, leading to more moderate cost development of overall Entertainment segment 15

16 GROWTH ACCELERATION THROUGH PARTNERSHIPS Governance & operational excellence Additional deal flow M&A efficiencies Value adding partner Drive cost synergies Possible asset contribution Access to top talent 16

17 TRANSITION OF OLD 2018 FINANCIAL TARGETS INTO NEW MID-TERM GROWTH AND MARGIN TARGET RANGES CURRENT 2018 TARGET M&A PRO-FORMA REVENUES Q LTM MID-TERM GROWTH MID-TERM MARGIN 1) Group revenues EUR 4,506m Entertainment EUR 2,686m +0-5% 30-35% Content Production & Global Sales EUR 570m +5-10% 5-10% Group adj. EBITDA EUR 1,145m (disposal) Commerce EUR 707m % 15-20% Group EUR 3,963m mid singledigit % mid-20s % 1) Adj. EBITDA margin calculated as entity adj. EBITDA/ext. revenues 17

18 KEY REVENUE GROWTH OPPORTUNITIES Addressable TV (New) pricing models NCG NUCOM GROUP New TV ad opportunities Advertising Platform Solutions EUR >1bn DTC platforms Red Button Portal/ HbbTV HD growth Red Arrow Studios Note: Revenue growth potential 2022 vs. 2017; including potential bolt-on acquisitions; outlook 2018 to be announced at full year earnings call 18

19 VALUE CRYSTALLIZATION Value today 1 Revenues Entertainment New ad-driven and non-ad revenues 2 Revenues Red Arrow Studios Organic growth of Content Production 3 Revenues NUCOM GROUP Organic growth of Commerce 4 Efficiencies Entertainment reorganization & cost reduction 5 Partnerships/ collaborations Intra-ad and European opportunities 6 M&A Larger bolt-on M&A Future value 19

20 FINANCIAL OUTLOOK 2017 Group revenue growth Adjusted EBITDA mid-single digit increase (%) slightly above prior year Adjusted net income slightly above prior year Financial leverage 1) 1.5x-2.5x Dividend payout ratio 2) 80-90% 1) Net debt/adjusted EBITDA 2) based on adjusted net income attributable to P7S1 shareholders 20

21 THREE THINGS TO REMEMBER Strong TV business Attractive synergistic diversification Strong revenue & value growth potential 21

22 ENTERTAINMENT TV broadcasting, Digital Entertainment, advertising sales

23 ENTERTAINMENT PORTFOLIO TV & Ad Sales Distribution AdTech Ventures Digital Platforms Business model Ad sales Subscription Service Data sales Ad sales VC investment Ad sales Subscription Market growth 23

24 ENTERTAINMENT PORTFOLIO STRATEGY DRIVE CLASSIC ADS & NEW REVENUES EXPLOIT NEW PRODUCTS & PLATFORMS LEVERAGE STRONG PARTNERSHIPS OPTIMIZE OPERATIONS & PUSH COST REDUCTION 24

25 WE ARE THE LEADING GERMAN TV GROUP AUDIENCE SHARE +0.6% pts +1.2% pts Q1-Q Q1-Q Base: All German TV households, A 14-49, Mon-Sun, 3-3 h; RTL Mediengruppe since June 2016 incl. RTLplus; w/o RTL II minority Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 25

26 STABLE LIVE TV VIEWING TIME min 239 min min min min min Source: AGF in cooperation with GfK; TV Scope 6.1, full year comparison 26

27 TOP FORMATS ON ALL SLOTS FOR OUR KEY CHANNELS PROSIEBEN AND SAT.1 DAYTIME ACCESS TIME PRIME TIME SAT.1 Frühstücksfernsehen taff Germany s Next Topmodel The Voice of Germany Ø 9M % Ø 9M % Ø 9M % Up to 27.1% The Big Bang Theory The Simpsons Promi Big Brother LUKE! Die Schule und ich 2017 Fox and its related entities. All rights reserved. Warner Bros. Television Ø 9M % Ø 9M % Ø 9M 2017 Ø 9M % 1) 13.3% 1) Late prime not included Basis: All German TV households (German-speaking), A 14-49, Mon-Sun; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 27

28 BROAD PORTFOLIO OF SUCCESSFUL LOCAL FORMATS EVERGREENS TOP FORMAT SPIN-OFFS INNOVATIONS Up to 27.0% 14.1% 2018 The Voice of Germany Die Beste Show der Welt Das Ding des Jahres Up to Stefan Raab as producer Up to 18.5% 13.0% SAT.1 Frühstücksfernsehen Beginner gegen Gewinner Start-up! Up to 2018 Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 28

29 SUCCESSFUL PORTFOLIO OF SECOND TIER INNOVATIVE SPORTS SUPER BOWL 2017 NFL DARTS ESPORTS Up to 44.8% Up to 11.6% Up to 8.1% Up to 8.0% KICK BOXING WRESTLING DRONE RACING MIXED MARTIAL ARTS Up to 6.1% Up to 3.7% Up to 2.6% Up to 1.6% Basis: 01/01/ /28/2017, all German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 29

30 INCREASING INFLOW FROM RED ARROW PUSH OUR OWN YOUR GRID STRATEGY WITH STRONG RATINGS IN KEY SLOTS Red Arrow share of BCGS s commissioned content spending [in %] 1) +4% pts 16 Kiss Bang Love Up to 15.4% Married at first Sight Up to 14.4% 12 The Taste Up to 10.9% Knallerkerle Up to 19.0% Q Q ) As % of spendings in EUR; w/o non-fictional license, adjusted for timing effects Basis: All German TV households (German-speaking), A years; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 30

31 SOFTER 2017 RATINGS DRIVEN BY NON PRIME TIME Delta share of viewing 2017 vs Share of external net TV advertising revenues 9M 2017 FULL DAY (03:00-03:00) [9M, A 14-49, in %pts] % DAYTIME (01:00-05:00 PM) -2.6 ACCESS TIME (05:00-08:00 PM) -1.9 PRIME TIME (08:00-11:00 PM) -0.2 Note: Rest of day category not included, adds up to 100% for full day in terms of external net advertising revenue. Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h, RTL Mediengruppe since June 2016 incl. RTLplus, w/o RTL II minority; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 31

32 DIFFERENTIATING CONTENT STRATEGY U.S. highlights Attractive local content Second tier innovative sports 2016 CBS Broadcasting, Inc. All Rights Reserved Gradual shift to local content depending on Quality of U.S. output Ability to improve U.S. deal terms Local content strategy of all competitors Availability of affordable rights ROI of incremental local invests 32

33 LONG-TERM GOAL IS HIGHER SHARE OF LOCAL CONTENT CONTENT MIX P7S1 CORE CHANNELS [Marke share contribution, in %] Local commissioned program 44 +~10%pts 100% U.S. license program 56 9M E GRADUAL SHIFT TO LOCAL CONTENT DEPENDING ON AVAILABILITY OF AFFORDABLE RIGHTS AND ROI OF INCREMENTAL LOCAL INVESTMENTS Basis: All German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 33

34 CONTINUED ACCESS TO GREAT CONTENT Own production U.S. studios International channel & local platform partners Own MCN Own digital platforms Own sports 34

35 SLIGHTLY HIGHER SHARE OF U.S. LOCAL COMMISSIONED PROGRAM U.S. LICENSE PROGRAM Genres News Magazines Factual Sports Live entertainment Non-live entertainment Reality prime time Reality daytime Local fiction Other Reality Movies Sitcom Animation Series procedural Series serial Ready-mades Audience share contribution 1) on P7S1 core channels (9M 2017) 44% 56% Grid share is roughly in line with audience share contribution 1) Contribution to the overall audience share of core channels ProSieben, SAT.1 and kabel eins (9M 2017) Basis: All German TV households (German-speaking), A 14-49, Mon-Sun; Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland 35

36 U.S. CONTENT ON LINEAR TV IS STILL A STRONG DIFFERENTIATOR AGAINST SVOD U.S. CONTENT IS STILL A STRONG DIFFERENTIATOR AGAINST SVOD OFFERINGS VIEWERS CLEARLY PREFER FREE-TV OVER SVOD IF SHOWN ON BOTH MEDIUMS THE BIG BANG THEORY Only ~9% total content overlap with Netflix offering1) 100m TV 2) 3.3m SVoD 3) 1) In % of total grid hours (incl. commissioned), content overlap in respective genres: Commissioned at ~0%, US license weighted average by grid hours at ~19% (with Series at ~16%, Movies at 18% and Sitcom at ~32%), own estimate based on title matching, comparison Oct 2016-Sept 2017 grid (in hours) of all P7S1 channels with content offering of Netflix (as of November 14, 2017) 2) At least 50% of an episode watched, Source: AGF in Cooperation with GfK; TV Scope 6.1, ) Source: Own Calculation, maxdome BI, ViewTime Report 36

37 KEY LEVERS TO OPTIMIZE STUDIO DEALS More selective content picking rights (qualifiers) Return rights for individual titles Improved sublicensing rights for titles with low P7S1 fit Extensions only against reduction of series commitment Flexible lifetime-of-series opt-outs 37

38 TV DOMINATES VS. SVOD ON SERIES Viewers clearly prefer Free-TV over SVoD if shown on both mediums The Big Bang Theory Prison Break Two and a half Men 100m 3.3m TV 1) SVoD 2) 4m 1.9m 60m 2.8m TV 1) SVoD 2) TV 1) SVoD 2) despite high SVoD penetration in target group even though only shown weekly on small channel despite only rerunning on TV and full availability on SVoD 1) At least 50% of an episode watched, Source: AGF in cooperation with GfK; TV Scope 6.1, 04/01/ /30/2017 2) Source: Own calculation, maxdome BI, ViewTime Report 38

39 PAYVOD POTENTIAL IN GERMANY MOST LIKELY LIMITED TO 60% PENETRATION 8%pts 5%pts 60% 44% 3%pts PayVoD penetration Nov 2017 Concrete subscription intention General interest in PayVoD Incremental factor users per subscription 1) PayVoD user potential Even in target group, PayVoD with limited growth in the long term 1) Assumption: 1.5 user per new subscriber Base: A n = 508; total paid video (PayVoD) includes SVoD & TVoD; Source: SevenOne Media/forsa, Nov 2017 Note: Long term growth (2020E) 39

40 LIVE TV DOMINATES VIDEO CONSUMPTION IN GERMANY BY FAR A TV REACH STABLE A DAILY TV USAGE IS ø 3h 48min 1) Reach [in %] Usage time [in min] Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/ Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/ TV DVD/Blu-ray Free online video Pay VOD TV Free online video Pay VOD DVD/Blu-ray LIVE TV VIEWING TIME OUTPERFORMS ALL OTHER VIDEO PLATFORMS COMBINED BY FACTOR 7.5 1) in Q3/17 Note: Usage at least rarely, rolling last 4 quarters Source: ViewTime Report, SevenOne Media/forsa 40

41 AND EVEN THE MILLENNIALS MOSTLY CONSUME VIDEO ON TV TWO THIRDS OF VIDEO USAGE IS LINEAR TV 1) LIFE STAGES DETERMINE TV AND ONLINE VIDEO USAGE 2) Share of complete video usage [per day] [Minutes per day], A 14-34, by life stages 4% Millennials TV A = 67% TV A = 88% TV 179 conventional + alternative % 59% 84% Linear TV Non- TV TV conventional TV alternative DVD/Blu-ray Free Online Video PayVoD School University/ Work Apprenticeship Online Video free + paid TV ADVANTAGE OVER ONLINE VIDEO INCREASES WHEN MILLENNIALS ENTER EDUCATIONAL AND PROFESSIONAL LIFE 1) Source: Media Activity Guide, SevenOne Media/forsa, Q ) Source: TV conventional: AGF TV Scope. Online video and TV alternative: Media Activity Guide, SevenOne Media/forsa, Q

42 NETFLIX AND AMAZON VIDEO WITHOUT MAJOR IMPACT ON TV PENETRATION AND DAILY PAYVOD USAGE TIME RATHER FLAT SINCE Q1/2017 1) LIMITED DAILY SVOD USAGE 2) PayVoD penetration [in %], PayVoD daily usage time [in minutes] Usage frequency [in %], A 14-69, Q3/2017 reach [in %] viewing time [in minutes] rarely at least once a month at least once a week (almost) daily Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 0 Amazon Video Netflix THE IMPACT OF NETFLIX, AMAZON VIDEO AND OTHERS ON LINEAR TV IS SMALL IN GERMANY 1) A 14-69, usage at least rarely, Source: ViewTime Report, SevenOne Media/forsa 2) Source: ViewTime Report, SevenOne Media/forsa 42

43 YOUTUBE WITH BROAD USER BASE BUT CONCENTRATED ON A SMALL BASE OF HEAVY USERS BROAD USER BASE BUT LOW VIEWING TIME & HIGH USAGE CONCENTRATION YouTube penetration by age groups 1) A A Daily YouTube video usage [in minutes] 1) % of YouTube s users generate A % (almost) daily at least once a week at least once a month rarely of its total usage 2) YOUTUBE USAGE IS MAINLY DRIVEN BY A SMALL NUMBER OF HEAVY USERS 1) Source: ViewTime Report, SevenOne Media/forsa, Q3/2017 2) Source: Double Play, SevenOne Media Calculations, March

44 USERS NOT INTERESTED IN AD VIDEOS ON FACEBOOK 77% INTERRUPT WITHIN THE FIRST 3 SEC LOW AVERAGE VIEWING TIME Facebook video ad reach [in %] 1) 100% 80% min daily video viewing time 2) 60% 40% 20% sec average viewing time on posts 3) 0% Impression 3 sec 5 sec 10 sec 15 sec 20 sec FACEBOOK IS NOT YET AN AD VIDEO MEDIUM FOR BRANDS IN MASS MARKETS 1) 5 Facebook video campaigns 2017, spot length 20 seconds; Source: SevenOne Media 2) A 14-69; Source: ViewTime Report, SevenOne Media/forsa, Q3/2017 3) On mobile; Source: Facebook ( 44

45 TV IS KEY ENTERTAINMENT MEDIUM REACH VIDEO CONSUMPTION [14-69, in %] [14-69, in min per day] TV incl. catch-up 93 TV incl. catch-up 232 Free online video 67 Free online video 13 DVD/ Blu-ray 70 DVD/ Blu-ray 5 PayVoD 28 PayVoD 9 28% PayVoD penetration only translates to ~3% share of daily video consumption Base: Q3/17, rolling for four last quarters, 14-69, TV incl. TV-related consumption (catch-up) Source: ViewTime Report, SevenOne Media/forsa

46 WE WILL LAUNCH A NEW DIRECT-TO-CONSUMER PLATFORM 7TV JV & 4) A Premium Catch-Up 5) 30 days LiveTV HD Vision: Subject to final changes Instant Restart 5) SVoD 3) & AD Technical Access Fee 30 days HD REG & AD Registration Offer 7 days SD AD Partner Free Offer Partner 7 days 1) NPVR = Network Personal Video Recorder 2) Optional service 3) Via maxdome bundle 4) Advertisements partly included 5) Subject to availability of rights 6) AdVoD (total video, incl. YouTube and Facebook) and SVoD market size in 2021, Germany Source: Magna Global as of June 2017, Statista (as of November 2017) Further partners in pipeline ~EUR 3.7bn addressable market in ) +24% CAGR 6) 46

47 MAXDOME EVOLUTION: STRENGTHEN P7S1 & NON-US CONTENT AND ENSURE PRESENCE ON ALL PLATFORMS Content Product Distribution P7S1 formats SHIFT & B2C US-Studios Indies SHIFT Add-on channels (exemplary) Kids Sports Anime New personalized Reco engine Google Home integration B2B 47

48 RED BUTTON PORTAL AS NEW PERSONALIZED INFOTAINMENT & COMMERCE PLATFORM NEWS FEED Personalized news feed with local edge Integration of commerce elements Dual usage next to the TV program CONTENT CHANNELS Thematic content channels Sponsored partner channels 48

49 ADDRESSING ON-TOP REVENUE POTENTIAL DEVICES TARGET GROUP USERS VISITS MONETIZATION 18-20m HbbTV devices (connected TVs) 15-18m Users with news & entertainment content interest 7-10m Monthly Active Users 30-40m Visits per month Ad Placement Sponsoring Lead Gen Note: Target state 49

50 CONTINUOUSLY GROWING HD PENETRATION GROWING HD SUBSCRIBER BASE [in m] >20% +30% +265% CAGR 8.4 OF GERMAN TV HOUSEHOLDS PAY 2.3 +On-top potential from DVB-T2 FOR TECHNICAL ACCESS TO OUR HD CHANNELS Q Q Note: HD penetration based on total TV households in Germany (38.3m); Source: Astra TV Monitor, freenet 50

51 LEADER IN GERMANY, AUSTRIA & SWITZERLAND SHARE OF ADVERTISING [Net Share] [Gross Share] [Gross Share] 40% 39% 40% 31% 20% 28% 25% Share of advertising in net and gross TV advertising market, 9M 2017 Source: Germany: internal estimate; Austria: internal estimate; P7S1 Group revenues include new subsidiary ATV; with the two channels ATV and ATV2 from April 2017 onwards; Switzerland: German-speaking Switzerland; Media Focus. 51

52 ADVERTISERS NEED TV FOR BRAND BUILDING 89% Which product or service advertisement which you have seen, read or heard recently can you remember? 10% 6% 5% 4% 4% TV Magazine Billboard Newspaper Radio Internet Base: n=5,988; Source: Ipsos, Screen Life

53 AND TV AS KEY DRIVER FOR PERFORMANCE CAMPAIGNS Effects of TV on Google search 1) ~80% Effects of TV on Facebook interactions 2) 33% Effects of TV on ecommerce orders 3) 57% of TV campaigns generate >10,000 incremental search requests of media-driven Facebook interactions for brands are generated by TV ads more ecommerce orders generated by TV ads All performance channels take advantage of TV campaigns 1) Source: Search Uplift Study 2015, Google/AEGIS, DA Resolutions 2) Source: TV Response: new rules, new roles, 2015, Group M/Thinkbox, UK, 2005; based on 8 brands, Facebook metric is likes and comments 3) Source: SevenVentures; weighted average of 5 assets 53

54 KEY ADVERTISERS APPRECIATE VALUE OF TV E-COMMERCE SERVICE FMCG The investments in TV advertising would build a foundation for the future Glenn Fogel, CEO When we run a heavy TV schedule, we see a lift in sales & product awareness. We need to run two weeks of digital to get the reach of one day of broadcast We targeted too much, and we went too narrow Marc Pritchard, Chief Marketing Officer Rich Lehrfeld, Senior Vice President of Global Brand Marketing & Communications Sources: Priceline quote: AMEX quote: P&G quote: 54

55 7 LEVERS IN PLACE TO ENSURE CONTINUED AD SALES SUCCESS AdTech & Data M&A New media segments Product innovations Pricing Powerful sales house Sales cooperation Strengthen data & tech to enable individualized targeting Grow our capabilities & revenues Enter growth segments with DOOH & Marktguru Innovative products to grow customer ROI Launch innovative pricing platforms & mechanism Strengthen customer centric sales set-up Extend sales force with cooperation to gain incremental revenues 55

56 Other Additional markets Core markets TACKLING ALL GROWING BUDGETS NET AD MARKET [in EUR bn] Linear TV Digital Video Sum core markets Addressable TV/HbbTV Performance (D)OOH POS & Freesheets Sum core & additional markets 2017E 2022E < P7S1 GROWTH LEVERS Strengthen Linear TV Grow Digital Video Build-up Addressable TV Drive performance offers Expand DOOH Push POS & Freesheet Digital Others Print Radio Source: SOM estimate based on commerce volume released by HDE/Federal Statistical Office of Germany, Magna Global (June 2017) & ZAW Yearbook

57 TO TRIPLE THE ADDRESSABLE MARKET ADDRESSABLE NET AD MARKET POTENTIAL 2022E [in bn] x Linear TV Digital Video Market of core segments in 2022E Market of additional segments in 2022E Market of core segments 2022E Addressable TV/HbbTV Performance (D)OOH POS & Freesheets Total addressable market 2022E Source: SOM Market Insights estimate based on Magna Global (June 2017), ZAW Yearbook 2017 and on commerce volume released by HDE/Federal Statistical Office of Germany 57

58 TV AD MARKET WITH SOLID GROWTH & STRONG ON-TOP POTENTIAL MARKET DRIVERS Basic market growth/net price increase NET MARKET GROWTH POTENTIAL 2022 VS [in EUR m] ~230 Incl. new pricing models National print cannibalization Sales commercial cooperation Call-to-action elements in TV (e.g. lead generation, website traffic) Shift to digital video LINEAR TV GROWTH POTENTIAL Addressable TV 1) ~360 ~100 ~ ~400 (CAGR 1.7%) ~260 1) Incl. new distribution on digital platforms Incl. voice/paid search opps Incl. HbbTV OVERALL GROWTH POTENTIAL ~660 (CAGR 2-3%) 1) Addressable TV potential calculated on top of Magna basic market growth Note: Estimate based on Magna Global (above-the-line, June 2017), SevenOne Media own estimate 58

59 FURTHER MONETIZATION POTENTIAL VIA TV CPT INCREASE Net CPT 1) [A 18-49, in EUR 2) ] Net CPT 1) [A 16-34, in EUR 2) ] CAGR 7% CAGR 7% CAGR 3% 9 CAGR 4% ) Estimate based on AGF/GfK, Nielsen, ZAW, Media Dynamics, egta 2) Currency conversion based on

60 TV & DIGITAL SHARE INCREASE DRIVEN BY PRINT LOSS GERMAN MEDIA MIX TODAY [net, in %] FUTURE MEDIA MIX [net, in %] % % 58% Others Print Digital TV E 2019E FUTURE MEDIA MIX WILL BE DOMINATED BY TV AND DIGITAL, DRIVEN BY LOSS OF PRINT Note: Excluding POS budgets; Statements may vary due to rounding Source: Magna Global (June 2017), Digital including Google and Facebook 60

61 TV LEVERS TO ADDRESS PRINT POTENTIAL EUR REACH: Shift of national reach campaigns to TV ADDRESSABLE TV: Accessing new business ~360m market growth potential SMALL CHANNELS: Targeting of specific niche print segments THEMATIC AD BREAKS: Special interest fields SPECIAL INTEREST FORMATS: Formats and magazines for special topics HBBTV: Development of advertorial products NEW BUSINESS: Dedicated sales force (over 1,100 contacts/year) Note: Estimate based on Magna Global (above-the-line, June 2017), SevenOne Media own estimate 61

62 PREMIUM VIDEO MARKET LEADER WITH TWO- FOLD STRATEGY PREMIUM REACH PREMIUM INVENTORY & WEBSTARS TV SITES STUDIO71 Auto & Sport PREMIUM MANDATES DIGITAL PREMIUM MANDATES News & Entertainment Fashion, Beauty & Lifestyle 29m UNIQUE VIDEO USERS 1) AND >400m VIDEO VIEWS 2) With O&O premium portfolio and 3 rd party premium mandates EXTENDED REACH >120 VIDEO PUBLISHERS 40m UNIQUE VIDEO USERS 3) AND 350M VIDEO VIEWS 4) Video ad network and many more Reach expansion with mid-tail publisher inventory via smartstream.tv 1) Source: AGOF daily digital facts April July 2017 (age 10+); comscore Video Metrix Audience Duplication July 2017 (S71); own calculation SevenOneMedia 2) 408 Mio. Video Views Multiscreen, Source: SevenOne Media 3) per month cross device (Desktop/Mobile/SmartTV); Source: Smartstream.TV 4) per month cross device (Desktop/Mobile/SmartTV) Source: Smartstream.TV 62

63 LARGE ADDITIONAL MARKET POTENTIAL FOR ADDRESSABLE TV/HBBTV ADDRESSABLE TV MARKET POTENTIAL Attracting new budgets [in EUR] 3.1 bn 1.7 bn 0.8 bn Decentral Niche branding Performancedriven Addressable TV potential Note: 2016, based on Nielsen data and P7S1 own estimates 63

64 NEW BEHAVIORAL TARGETING TO ACCESS UNTAPPED BUDGETS Bookable since 09/2017 Family +58% Print with kids budgets uplift within target group HHNI above EUR 3,000 Generation 50+ households +40% uplift within target group +39% uplift within target group Budgets of luxury brands Budgets for public channels and print Source: SevenOneMedia 64

65 SUCCESSFUL FULLSCREEN SPOT OVERLAY TEST Johnson & Johnson SATURN MEDIA MARKT Access Prime Time, October 21, 2017 Daytime, October 28, 2017 Spot Overlay with retargeting on ProSieben MAXX with potential of ~5m devices on HbbTV

66 WE ARE WORKING ON FULL SPOT OVERLAY OFFERING SUCCESSFUL TEST WITH HBBTV 1.5 HBBTV PENETRATION SmartTVs supporting HbbTV in Germany [in %] HbbTV 1.0 HbbTV 2.0 HbbTV 1.5 We initially aimed to overlay full TV commercials with targeted ads just with HbbTV Total: 55 We are testing a solution to overlay full spots already via HbbTV 1.5, which is more widely distributed 11.5m <1 We successfully executed first live tests of that solution with Johnson & Johnson and MediaMarkt Source: P7S1 internal estimates 66

67 OUR VISION: ADDRESSABLE TV BASED ON DIGITAL DATA EXAMPLE: RETARGETING OF FLACONI VISITORS ON TV Full spot overlay Interest data, e.g., Perfume Cross-device match (e.g., via IP address) 67

68 TV ADS AS SIGNIFICANT CALL-TO-ACTION TRIGGER TRAFFIC TRIGGER ENGAGEMENT TRIGGER PLACEMENT SPOT SPOT ~EUR 50m market growth potential TV triggers immediate traffic e.g., search requests, website visits 1) TV ads with performance-oriented elements for engagement and conversion TV ad market benefits from growing (+10% 2) ) performance market 1) Source: SevenOne Media 2) online peformance marketing growth, Magna Global

69 PERFORMANCE UPLIFTS FOR AD CLIENTS AND OWN ASSETS ZALANDO DATA EXAMPLE AWARENESS AND SALES CAMPAIGN FOR FASHION CLIENT BRAND ENGAGEMENT CAMPAIGN FOR OWN ASSET +92% Purchase Intent +233% Awareness +141% Purchase Intent +130% Awareness Source: SevenOne Media 69

70 TV TO ADDRESS THREATS OF PAID SEARCH SHORTCOMINGS OF PAID SEARCH Broadcasted keyword in Live TV Generates positive ROI mainly for market leaders CAR INSURANCE: 20% OFF! Particularly challenging on small screens/mobile Advertisers bidding for TV keyword Highest bidder wins the bid Customers linked to shop via Red Button portal Scan QR code 70

71 ESOME TO FURTHER CAPTURE PERFORMANCE-DRIVEN BUSINESS Social Display Add. TV Market leading for all advertising activities within social networks KPI-driven sales capabilities in all social networks Expand KPI-driven sales to Display & Addressable TV STEPPING STONE TO FURTHER EXPAND PERFORMANCE MARKETING OFFERING Note: esome transaction signed, closing expected in Q

72 Advertiser/agency PROPRIETARY FULL ADTECH STACK Demand side platform Supply side platform Ad server Sales house Publisher NEW NEW 2) NEW 1) NEW Minority stake only 1) 2) NEW 1) Transaction signed, closing expected in January ) Transaction signed, closing expected in Q

73 GAINING TRACTION IN STRONGLY GROWING DOOH MARKET DOOH MARKET PLAYERS 2) [2017, revenues in %] P7S1 PORTFOLIO 3) 3) Others 7% 11% ~282m 4) contacts/months +16.4% 12% FOCUS TOUCH POINTS 70% DOOH GROWTH 1) Advertisers aspire to a more balanced market 7AIRPORT >2.6k screens to address business travelers at 10 airports URBAN Multiple touchpoints incl. innovative spots 1) Source: Magna Global forecast (June 2017) for growth 2016 to 2017 in DOOH market 2) SevenOne Media own estimate based on expert calls with agencies and clients 3) Currently no equity stake, only sales house 4) Source: SevenOne Media Research Oct

74 MARKTGURU TO CONQUER SALES PROMOTION BUDGETS MARKET POTENTIAL [FY 2017] DIGITAL FREESHEET MARKET PLAYERS 2) [2017, revenues in %] EUR 14% 8% 1.9bn 1) 78% NET FREESHEET MARKET Currently EUR <100m addressable & strongly growing digital freesheets market Kaufda as successful and highly profitable proof case for Marktguru 1) Further addressable potential of EUR +7.9bn from POS market; Source: ZAW Yearbooks 2013 to 2017; SevenOne Media, Market Insights 2) SevenOne Media own estimate based on expert calls with agencies and clients 74

75 COLLECTION OF >70M UNIQUE PROFILES Platforms & Brands Total unique profiles 3) Thereof in-depth commerce profiles 4) Desktop Web 20m+ 8m+ Mobile Web 1) >50 platforms & brands in ) 40m+ 5m+ HbbTV 10m+ New products in pipeline 1) Excl. app reach 2) Including strategic minorities collecting data in our DMP 3) Based on unique cookies active per months 4) Based on accumulated unique visits across commerce portfolio 75

76 3-FOLD DATA STRATEGY FOR AUDIENCE-DRIVEN CAMPAIGNS COMPREHENSIVE OWN DATA PROFILES INTELLIGENT DATA CO-OPERATIONS STRATEGIC LOG-IN ALLIANCE Online Data 20m+ 1) Mobile Data 2) 40m+ 1) Addressable TV Data 10m+ 1) 1) Based on unique cookies active per month 2) Excl. app reach Source: P7S1 76

77 NEW AD REVENUE STREAMS WITH EBX PAN-EUROPEAN ONLINE VIDEO AD MARKET >30% CAGR STRONG CUSTOMER POTENTIAL 1) >100m MONTHLY UNIQUE USERS PURE PROGRAMMATIC OPERATIONS Tactics: Aligned target group definition Joint sales force One customer interface Source: EBX analysis based on emarketer 1) Exemplary advertiser with pan-european campaigns in the past 77

78 WE ESTABLISHED POWERFUL PARTNERSHIPS AND PLATFORMS EUROPEAN BROADCASTER EXCHANGE STUDIO71 CO-INVESTMENT ONE-STOP-PLATFORM FOR ONLINE VIDEO CONSUMPTION LOG-IN PARTNER ALLIANCE Note: Selection, Login-in alliance based on joint foundation subject to approval of anti-trust authorities and deal signing 78

79 MEDIA ALLIANCE PARTNERSHIPS COVERING ALL KEY EUROPEAN MARKETS Nordics MEDIA ALLIANCE UK Belgium Poland Household reach GSA >200m Portugal France CEE Spain Italy Greece, SEE Turkey Initiated by P7S1 in 2014 Note: GSA = Germany, Switzerland and Austria 79

80 CONTENT PRODUCTION & GLOBAL SALES Red Arrow Studios

81 OUR VISION BUILD A LEADING GLOBAL CONTENT, TALENT, AND IP COMPANY Content Production Distribution & Sales Talent Packaging O&O Channels & Platforms Generated and owned IP assets 81

82 ATTRACTIVE MARKET ADDRESSING A RAPIDLY GROWING GLOBAL MARKET Content Production Branded Content Digital Video Ads Influencer Marketing 58bn bn 2021E 12-16% CAGR Note: Reflects mid-point of range identified by McKinsey; includes Western Europe, U.S. and Latin America Source: McKinsey analysis, in EUR 82

83 MARKET TRENDS CONSUMER DEMAND FOR CONTENT HAS FUNDAMENTALLY SHIFTED TV/ linear Mobile/ non-linear Combine linear and non-linear content Shortform Longform Exploit long- and short-form content Gain scale in digital video ad sales Differentiate in branded content Build scale in influencer marketing Focus on top tier talents Local/traditional Global/new Invest in technology and exploit data 83

84 NEED FOR DIFFERENTIATION REQUIRING CONTENT PRODUCERS TO FOCUS ON DIGITALLY INTEGRATED OFFERINGS CONTENT PRODUCTION DIGITAL VIDEO BRANDED CONTENT AND INFLUENCER MARKETING Need for expertise across all content forms and exploitation Need for strong partnerships with advertisers and data capabilities Need for premium talent and multi-industry verticals coverage 84

85 GROWTH OPPORTUNITY AN INTEGRATED PLAYER CAN CAPITALIZE ON THESE MARKET TRENDS AND DYNAMICS Clients Networks & broadcasters 1) 1) Advertisers & brands Long-form content Short-form content Integrated player Comprehensive product offering Distribution & IP invest Talent packaging Monetization & advertising Data & technology Talents Writers Directors Actors Producers Influencers 1) Examples 85

86 BEST-IN-CLASS BUSINESS WE HAVE BUILT A SIZEABLE PRODUCTION BUSINESS WITHIN 8 YEARS 21 production companies in 8 countries Global distributors 86

87 OUR PORTFOLIO APPROACH COMPREHENSIVE APPROACH TO REDUCE VOLATILITY MULTIPLE COMPANIES AND COUNTRIES DIVERSIFIED SLATE IN ALL GENRES DIVERSIFIED CUSTOMER PORTFOLIO 87

88 BEST-IN-CLASS BUSINESS WE HAVE BUILT A LEADING MCN WITHIN 4 YEARS Top 10 Video distributor 1) 8bn Video views per month 1) >1,300 Global creators 1) 1) Source: Studio71, Top 10 video distributor in every market Studio71 operates in 88

89 STUDIO71 FUTURE SCALE DIVERSIFICATION INTO HIGH-MARGIN SEGMENTS Licensing & Merchandising YouTube ad sales Multi-pillar positioning Original content Media sales Branded solutions Multiple sources of monetization 40% Margin potential of revenues already generated outside of YouTube Ad Sales business 1) 1) Share of global revenues 9M

90 PLAYBOOK OUR PROVEN FORMULA Strong and diversified portfolio effect Seamless collaboration across all business lines Strong partnerships across subsidiaries Strong reputation with digital creators and talents Strategic access to premium TV content Exclusive partnerships with European broadcasters Exceptional reputation with international creators Trusted partner for broadcasters worldwide Balanced production and distribution genre mix Top development teams in all genres Delivery of high performing content to OTT partners Internal development of scalable tech and data tools 90

91 STRONG KPIs WE ARE ALREADY REACHING LARGE GLOBAL AUDIENCES ACROSS ALL CHANNELS No. of productions 1) Hours produced Returning shows 2) Returning shows rate 3) Shows in the catalogue 4) No. of int l sales clients 4) 420 1, % Video distributor ranking 5) No. of web channels 6) Monthly Video Views 6) No. of YouTube subscribers 7) Monthly engagements 8) Monthly min watched 8) Top 10 >1,300 8bn 793m 142m 30bn 1) Incl. pilots, new and returning productions, multiple seasons counted as separate productions (YTD Q3 2017) 2) Returning shows with revenues booked in 2017 (YTD Q3 2017) 3) % returning shows as of revenues (YTD Q3 2017) 4) Cumulative 2010 to Q ) Source: Studio71, Top 10 video distributor in every market Studio71 operates in 6) Source: Studio71 7) As of Nov 2017, excl. France 8) Oct 2017, excl. France 91

92 UNIQUE STUDIO PLATFORM RED ARROW STUDIOS FORMS A COMPREHENSIVE SET OF INTEGRATED SERVICES CONTENT CREATION Licensing & merchandising BRAND SUPPORT Advertising & media sales DISTRIBUTION & IP INVESTMENT Scale of current operations: Small/New Medium Large 92

93 COMMERCE NUCOM GROUP

94 VALUE OUR JOURNEY FROM MEDIA INVESTMENTS TO OMNICHANNEL GROWTH PLATFORM GROWTH PLATFORM Selected examples Utilize idle TV inventory Benefit from TV media & marketing power in GSA 2) region MAJORITY INVESTMENTS M4R/M4E 1) Test business model media fit Extract market insights Establish first additional revenue sources (commercial cooperations) M&A SCALE Drive consolidation in GSA 2) region Invest with bigger ticket sizes in GSA 2) region Form local market leader in Germany through cornerstone assets Setup operational excellence & data capabilities Seize European opportunity based on growth platform Accelerate M&A activity to capture window of opportunity for European consolidation in selective verticals / / / ) M4R = Media for Revenue; M4E = Media for Equity 2) GSA = Germany, Switzerland & Austria 94

95 WE BUILT A PORTFOLIO OF 10 MARKET LEADERS IN GSA 1) HOME SERVICES & MOBILITY LEISURE & RELATIONSHIPS HEALTH & BEAUTY STYLE #2 #1 #2 3) #1 5) #1 #1 #2 4) #1 5) #1 2) #2 # = market position 1) GSA = Germany, Switzerland & Austria 2) #1 in lead generation market for investment goods around the house; strategic minority investment 3) Based on ecommerce revenues in Germany 4) In respective mass market segments 5) #1 in lead generation market for respective segments 95

96 BASED ON CLEAR INVESTMENT PRINCIPLES Significant market size, profit pool and growth potential Proven assetlight business model with strong marketing leverage B2C focused businesses within our target group High defensibility against FANGA 1) and low tech disruption risk Strong management & operational quality 1) FANGA = Facebook, Amazon, Netflix, Google, Apple 96

97 WITH DIVERSIFIED AND DE-RISKED REVENUE STREAMS BUSINESS MODELS ADJACENT REVENUE STREAMS SUBSCRIPTION AD SALES COMMERCIAL COOPERATIONS DATA SALES 3) CPO/CPL 1) CPC 2) ECOMMERCE CONSUMER PRODUCTS Online ad sales (display, native ads and video) on content related commerce sites Ad integration with 3rd party commerce partners to drive growth and generate incremental income Monetizing sociodemographic as well as intent & interest data to advertisers for better targeting 4) 1) Cost per Order/Cost per Lead 2) Cost per Click 3) Currently in development 4) Anonymized and compliant with data protection law 97

98 WE HAVE A UNIQUE VALUE PLAYBOOK IN THE INDUSTRY Media & brand power Data contribution Commercial cooperations Omnichannel potential Operational excellence 98

99 Our portfolio companies benefit from our media & marketing expertise MEDIA & BRAND POWER BUDGET SOURCE >12bn TV contacts in 2016 PLAN & EXECUTE OPTIMIZE being one of SevenOne Media s biggest ad clients 99

100 We leverage a large proprietary data pool together with the P7S1 Group 1) DATA CONTRIBUTION DATA MGMT PLATFORM RETARGETING PERSONA- LIZATION LOG-IN ALLIANCE >60m P7S1 unique user profiles 2) our large data pool & new log-in alliance provide strong competitive advantage even more after launch of GDPR 3) & eprivacy regulation 1) Currently in development 2) Based on unique cookies active per month in ADEX for Website & Mobile, excl. HbbTV 3) General Data Protection Regulation Note: Launch for both GDPR and eprivacy regulation expected in

101 We integrate 3 rd party commerce partners offering different ad components e.g., COMMERCIAL COOPERATIONS CO-BRANDED TV SPOT CONTENT MARKETING >20 Number of integrated TV partners in 2017 LISTING HOMEPAGE INTEGRATION source of incremental revenues and competitive advantage 101

102 We build a unique and synergistic omnichannel ecosystem broadening our distribution channels OFFLINE RETAIL ONLINE OMNICHANNEL POTENTIAL >10k Number of offline Point of Sales distributing our products SOCIAL/ DIRECT SALES HOME- SHOPPING >5% uplift versus prior year 102

103 OUR PLATFORM ENABLES OUTSTANDING GROWTH OF OUR ACQUIRED ASSETS 1.6x 2.0x Revenue Q LTM vs. LTM at entry EBITDA Q LTM vs. LTM at entry Note: Excl. Käuferportal and Jochen Schweizer; adjusted EBITDA excl. airtime 103

104 CASE STUDY VERIVOX #2 >20% >8m Market position in GSA region EBITDA CAGR E 1) Customers served since ) Excluding Preis24 104

105 VERIVOX HELPS CONSUMERS SAVE MONEY BUSINESS MODEL EXAMPLE: ENERGY VERTICAL Consumer Provider Motivation Compare prices to save time and money 1 Consumer enters product requirements 3 Motivation Generate revenues through commissions, advertising, and B2B services 2 Verivox compares tariffs of providers Motivation Successbased, low-cost sales channel (~40% savings in CAC 1) ) Consumer selects best tariff 5 4 Verivox sends contract data to provider Consumer finalizes and transmits application Compares >29,000 tariffs of 1,000+ providers for transparent market overview 6 Provider pays commission to Verivox 1) Customer Acquisition Cost 105

106 VERIVOX WITH A STRONG CONSUMER PROPOSITION VERIVOX CASE STUDY YOUR TARIFF EXPERTS. COMPARE WITH US & SAVE. AWARD-WINNING TRUSTED CONSUMER BRAND EUROS SAVED BY CONSUMERS USING VERIVOX 1) 64x HONORED SINCE 2008 >2.0bn EXPERIENCED RELIABLE TRANSPARENT 1) Estimated savings vs. assumed previous contract expenses 106

107 UK CONFIRMING VERIVOX SIGNIFICANT GROWTH POTENTIAL VERIVOX CASE STUDY OPC REVENUES PER HOUSEHOLD MARKET COMPARISON ENERGY: UK VS. GERMANY [in EUR, 2015] # of market players with EUR >80m revenues: 2 15 x # of market players with EUR >80m revenues: 4 1) Year of deregulation Switcher in % of all households Average spent on TV media last 5 years (p.a.) 3) 1999 ~17% EUR ~4 per household ) ~11% EUR ~1 4) per household Growth of number of switchers in past 5 years +~20% +~25% TRAFFIC AND FREQUENCY OF USAGE ARE KEY DRIVERS FOR FUTURE GROWTH 1) Player 5: uswitch. 2) Energiewirtschaftsgesetz EnWG, ) Estimate 4) Increasing to EUR in past two years Source: P7S1 market model; Destatis; OC&C; Roland Berger; Greenhill; market intelligence 107

108 ADD-ON ACQUISITIONS HELP VERIVOX TO CREATE A UNIQUE PLACE TO MANAGE FINANCIAL NEEDS VERIVOX CASE STUDY GERMANY S LEADING ONLINE CANCELLATION SERVICE Add-on acquisition #2 CROSS-VERTICAL ONLINE COMPARISON PORTAL LEADING INDEPENDENT MULTI-BANKING APP Add-on acquisition >5m cancellations p.a. Increase traffic Drive monetization Drive frequency 108

109 OPPORTUNITY TO BUILD FIRST PAN-EUROPEAN OPC VERIVOX CASE STUDY 52 OPC PENETRATION BY COUNTRY 1) [in %] Several M&A targets to become available in upcoming 24 months 1) Share of purchases using OPC websites Source: Google consumer barometer survey of internet users 2014/15: >1,500 people surveyed about their last purchase of car insurance 109

110 THREE THINGS TO REMEMBER PORTFOLIO OF 10 MARKET LEADERS IN GSA 1) UNIQUE VALUE PLAYBOOK IN THE INDUSTRY PARTNER WILL ALLOW US TO ACCELERATE OUR GROWTH PATH IN EUROPE #1 & #2 MARKET POSITIONS 1.6x EBITDA & 2.0x REVENUE VS. ENTRY 2) LONG M&A LIST OF 50+ TARGETS IDENTIFIED 1) GSA = Germany, Switzerland & Austria 2) Q LTM vs. LTM at entry; excl. Käuferportal and Jochen Schweizer; EBITDA excl. airtime 110

111 DISCLAIMER This presentation contains "forward-looking statements" regarding ProSiebenSat.1 Media SE ("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. 111