January 2019 COMPANY PRESENTATION

Transcription

1 January 2019 COMPANY PRESENTATION

2 KEY OBSERVATIONS HARD REALITIES GREAT STRENGTHS TO BUILD ON NO GROWTH IN ENTERTAINMENT AND CONTENT PRODUCTION. HEAVILY DEPENDENT ON TV ADVERTISING. LIMITED REVENUES GENERATED FROM DIGITAL ENTERTAINMENT AREAS. OVERHANG AND LOW QUALITY OF U.S. CONTENT. EXECUTING NOT WELL-ENOUGH AND SLOWLY POWERFUL ENTERTAINMENT BRANDS & ADVERTISING PLATFORMS BELOVED COMMERCE BRANDS EXCITING CONTENT PRODUCTION 9.7M AVERAGE TOTAL REACH OF ONE EPISODE 1) #1 MARKETER 2) 35M MONTHLY VISITS 3) 10BN MONTHLY VIDEO VIEWS 4) >10X REVENUES SINCE ) Number of people reached with an average episode of last GNTM season, all people 3+, no double counting, linear TV (live, +3 days time shift) and websites (Laptop/Browser) as basis from AGF data and proxy for incremental reach through Apps (Mobile, SmartTV) and YT (Digital Channels); 2) Based on AGOF media ranking 2017/2018; 3) As of December 2017, based on company data; 4) Worldwide; Average July to September 2018, excluding France, YouTube analytics; Source: P7S1 company data; AGF; AGOF media ranking 2017/2018; YouTube analytics 2

3 TOTAL VIDEO USAGE MONTHLY REACH WORLD OF ENTERTAINMENT IS CHANGING E 1) [A 14-69, IN %] LINEAR TV FREE ONLINE VIDEO PAY VOD BY DEVICE 2018E 2) [A 14-29, IN %] 60% 23% 17% TV PC/LAPTOP SMARTPHONE/ TABLET ANYTIME, ANYWHERE, ANY DEVICE MORE MEDIA CONSUMPTION THAN EVER 1) Rolling last four quarters, Q4 for , Q3 for 2018, usage at least once a month; 2) Device split based on average daily video usage time (220 minutes), rolling last four quarters, Q4 for Source: ViewTime Report, SevenOne Media, forsa 3

4 TV PLAYS A KEY ROLE IN THE ECOSYSTEM VIEWING TIME 1) [A 14-69, IN MIN] = MONTHLY REACH 1,2) [A 14-69, IN %] TV % % % FREE ONLINE VIDEO PAYVOD % 32% % TV AD MARKET GERMANY 4) [IN EUR BN] E 2023E 3) ) Rolling last four quarters, Q4 for , Q3 for 2018; 2) Usage at least once a month; 3) Internal estimates based on historic development and current usage trends; 4) 2023 extrapolated by SevenOne Media Source: ViewTime Report, SevenOne Media, forsa, Magna Global (as of June 2018) 4

5 A BIG SANDBOX TO PLAY IN ADVERTISING MARKET 1) [IN EUR BN, GER] ENTERTAINMENT MARKET 2) [CONSUMER SPEND, IN EUR BN, GER] E-COMMERCE MARKET/PLATFORMS 3) [IN EUR BN, GER] P7S1 MARKET SHARE P7S1 MARKET SHARE P7S1 MARKET SHARE ~10% <1% <1% 7% % % % % % % E E E 1) Digital advertising includes digital out-of-home; 2) Traditional excl. TV and radio license fees; live music from bdv; 2023 extrapolated; 3) Includes e-commerce market (B2C sales of physical goods) and online services on platforms such as consumer advice (verivox markets), sales for experience vouchers market and online matchmaking; Source: Magna Global (June 2018); PwC German Entertainment and Media Outlook ; Statista (August 2018); Euromonitor (2017); bdv (2018); SOM; P7S1 Market Intelligence CAGR TRADITIONAL DIGITAL 5

6 AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT ProSieben/Andreas Franke 6

7 OUR VISION: CREATE A CONSUMER-CENTRIC ENTERTAINMENT AND COMMERCE CHAMPION CONSUMER-LED & OBSESSED CONTENT-LED DIGITAL FIRST TOTAL REACH GROWTH-DRIVEN PASSIONATE CREATORS ENTER- TAINMENT & CONTENT CONSUMERS LOVE COMMERCE CONSUMERS NEED 7

8 OUR AMBITION: ACCELERATE GROWTH OUR STARTING POINT 1) AMBITION IN ~5+ YEARS INCL. BOLT-ON M&A REVENUES [EUR] 2) ADJ. EBITDA [EUR] EQUITY VALUE [EUR] 3) REVENUES [EUR] ADJ. EBITDA [EUR] EQUITY VALUE [EUR] 4BN 1BN 5BN 6BN 1.5BN NON-ADVERTISING REVENUE SHARE GROUP DIGITAL REVENUE SHARE GROUP 4) SMART ADVERTISING SHARE OF ENTERTAINMENT ADVERTISING REVENUES 5) NON-ADVERTISING REVENUE SHARE GROUP DIGITAL REVENUE SHARE GROUP 4) SMART ADVERTISING SHARE OF ENTERTAINMENT ADVERTISING REVENUES 5) 40% 30% 5% 50% 50% 25% ACTUAL TOTAL SHAREHOLDER RETURN 6) YE 2016 YTD % TOTAL SHAREHOLDER RETURN 10-15% P.A. ADJ. EPS GROWTH PLUS DIVIDEND YIELD 1) Figures relate to Q LTM, if not stated otherwise; 2) Revenue split in EUR Entertainment: 2.7bn, Red Arrow Studios: 0.5bn, NuCom Group: 0.8bn; 3) Equity Value based on current stock price October 2018; 4) Incl. digital businesses from Entertainment, Nucom Group (referring to the segment Commerce) and Red Arrow Studios (referring to the segment Content Production and Global Sales); 5) Smart advertising includes targetable products both linear and digital; 6) TSR calculated as share price performance plus dividends reinvested in security based on Bloomberg; Source: P7S1 company data; Bloomberg 8

9 STRATEGIC PRIORITIES ACROSS OUR THREE PILLARS ENTERTAINMENT NUCOM GROUP RED ARROW STUDIOS INTERNAL FEED INCREASE SHARE OF IN-HOUSE PRODUCTION FOR ENTERTAINMENT ONE ENTERTAINMENT HOLISTIC CONSUMER-FIRST APPROACH LOCAL CONTENT MORE LIVE, MORE LOCAL, MORE OWN IP DIGITAL ATTACK FAN COMMUNITIES, AGGREGATORS, DIGITAL CHANNELS TOTAL TO SMART REACH LINEAR & DIGITAL REACH MADE TARGETABLE CONSUMER NEEDS LARGE MARKETS SERVING STRONG NEEDS FOCUSED PORTFOLIO ASSETS ALONG FOUR CORE VERTICALS MARKET LEADERS ORGANIC GROWTH AND BOLT-ON M&A SYNERGISTIC FOOTPRINT BUILD-&-BUY OF LOCAL FOOTPRINT TOTAL MONETIZATION NEW BUDGETS & CLIENTS SCALE OF STUDIO71 INCREASE INTERNATIONAL FOOTPRINT AND PROFITABILITY Note: Red Arrow Studios refers to the segment Content Production and Global Sales; NuCom Group refers to the segment Commerce incl. travel 9

10 AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT ProSieben/Andreas Franke 10

11 NUCOM GROUP NUCOM GROUP SNAPSHOT EUR 0.8 BN REVENUES 1) EUR 0.1 BN ADJ. EBITDA 1) EUR 1.8 BN VALUATION 2) 35 M MONTHLY VISITS 3) CONSUMER ADVICE MATCHMAKING EXPERIENCE & GIFT VOUCHERS BEAUTY & LIFESTYLE SAVINGS LOVE EXPERIENCE WELL-BEING 83% AIDED BRAND AWARENESS 4) #1 W/ LARGEST CUSTOMER DATABASE 6) >21K DIFFERENT EXPERIENCES OFFERED 7) >10X REVENUES SINCE ) 1) Q LTM, excl. eharmony, incl. travel; 2) Enterprise value at time of transaction (February 2018); 3) As of December 2017 based on company data; 4) Based on consumer survey conducted by the company; 5) Signed in October 2018, eharmony part of PEG; 6) Singles in Germany, Switzerland and Austria looking for a serious relationship; 7) Company information Source: P7S1 company data; Nucom Group 11

12 NUCOM GROUP VERIVOX: A LEADING ONLINE PRICE COMPARISON PLAYER IN ATTRACTIVE GERMAN MARKET WITH CATCH-UP POTENTIAL EUR >48BN Money wasted by German households on too expensive contracts every year 1) >800 Suppliers available for price comparison on Verivox across 4 categories 26% 20% 83% Revenue CAGR 2) E EBITDA 3) CAGR E Aided brand awareness 4) OPC 5) revenues per HH, 2017 in EUR >2X # of multi-product OPC Players >35% Benchmark 6) 24% Today EBITDA margin 3) 1) Verivox Geldverschwendungsreport 2018; 2) CAGR = Compound annual growth rate; 3) Adjusted entity EBITDA; 4) Based on consumer survey conducted by the company; 5) Online price comparison; 6) Based on international competition Source: Company information; Solon market model 12

13 NUCOM GROUP PARSHIP ELITE GROUP: #1 ONLINE MATCHMAKER IN GSA 1) IN ATTRACTIVE MARKET WITH STRONG GROWTH AMBITIONS PEG clear >25M Singles in GSA 2) #1 with largest database of singles in GSA 2) looking for a serious relationship 10% Revenue CAGR E 37% EBITDA 3) CAGR E EUR >500 Customer lifetime value 81% Aided brand awareness 4) Online matchmaking market penetration 5) 16% 22% 33% GER AT CH >35% 30% Benchmark 6) Today EBITDA margin 3) Substantial international potential based on superior monetization model 1) In Germany, Switzerland and Austria based on revenues within matchmaking segment; 2) Germany, Switzerland and Austria; 3) Adjusted entity EBITDA; 4) Based on consumer survey conducted by the company; 5) Market = Singles aged (~80% of PEG users) looking for a serious relationship, based on PEG registrations 2018; 6) Based on international competition Source: Company estimates; P7S1 market model; Destatis, Bundesamt für Statistik CH, Statistik Austria 13

14 NUCOM GROUP INVESTMENT HIGHLIGHT: EHARMONY DEAL WILL TRANSFORM OUR MATCHMAKING BUSINESS Highly attractive deal of an iconic brand with significant potential USD M Enterprise value 1) (<1x 2018E revenues) 87% Aided brand awareness 2) PEG eharmony Number of registrations in million, % Shares acquired 78% Highest customer satisfaction within U.S. peer group 3) >500 <200 PEG eharmony Customer lifetime 27% value in EUR PEG management team with proven integration track record! 1) Enterprise value at time of transaction (February 2018); 2) Based on consumer survey conducted by the company; 3) Based on consumer survey (n=692) Source: Company information 14

15 NUCOM GROUP JOCHEN SCHWEIZER MYDAYS GROUP: #1 AND #2 MARKET LEADER IN EXPERIENCE & GIFT VOUCHER MARKET EUR >29BN Spend on gifts in Germany p.a. IN A POST-MATERIAL WORLD, EXPERIENCE GIFTS CREATE MEMORIES AND MATTER MOST >6K Selected and quality-tested experience providers >21K Different experiences offered 12% 33% Revenue CAGR E EBITDA 1) CAGR E 85% 77% Aided brand awareness 2) Total gift market spend (>EUR 29BN), Germany <2% Experience specialist market ~25-30% Benchmark 3) 12% Today EBITDA margin 1) 1) Adjusted entity EBITDA; 2) Q3 2018; based on consumer survey conducted by the company; 3) Based on international competition Note: Market positions based on experience specialist market; Jochen Schweizer the #1 and mydays the #2 in Germany Source: Company information; Company market model 15

16 NUCOM GROUP FLACONI: A LEADING ECOMMERCE ONLINE BEAUTY PLAYER WITH STRONG MARKET GROWTH POTENTIAL Beauty & Care market, Germany EUR 17BN in 2017 >600 Brands >40K Products EUR >100M GMV 5) 1.3M Active customers Q LTM +42 NPS 1) >2X Revenues 2) after 24 months EUR 120M >10X Ext. Revenues revenues 3) since 2014 Beauty & Care market online penetration estimate 2017, in % ~5% GER ~10% UK 25%+ CN 4) ~10-15% Benchmark 6) profitable Today EBITDA margin 7) 1) Net Promoter Score (NPS), October 2018; 2) After 24 months the cumulated net order intake (NOI) of the Q cohort has reached >2x its original level; 3) Q LTM; 4) China; 5) Gross media volume; media invest within last 4 years; 6) Based on competitive analysis; 7) Adjusted entity EBITDA Source: Company information; Euromonitor International / FGRT 16

17 NUCOM GROUP STRONG STRATEGIC PARTNERSHIP AND GROWTH ACCELERATION WITH GENERAL ATLANTIC (GA) Restructured portfolio Announced divestment of travel assets etraveli / weg.de / tropo ESTABLISHED NUCOM Prepared portfolio for NuCom transaction 10 focus companies Carve-out from P7S1 s organization Foundation of NuCom Holding Signed deal with GA Minority investment of General Atlantic (GA) in NuCom Buyout of minorities in core assets (Verivox, PEG, Billiger-Mietwagen) to simplify NuCom structure Introduced new processes Governance Media, data Holding services Kicked off major operational improvements Tech/IT audits Pricing reviews Investment management Q3 Delivered eharmony deal Q Management/ organizational upgrades Top-notch network and talents: Hired 3 new CEOs and three further C-level candidates for portfolio Q1 Q2 17

18 NUCOM GROUP STRONG P7S1 ECOSYSTEM AS AMPLIFIER EUR >300M GMV ANNUALLY 1) >15 JOINT TEST & DEVELOPMENT CAMPAIGNS IN ) Gross media volume; 2) As of November 2018 ~0.5M 7PASS REGISTRATIONS 2) 18

19 NUCOM GROUP FOLLOWING THE DEFINITION OF NUCOM GROWTH STRATEGY WE WILL DISCLOSE EXTERNAL REVENUES PER VERTICAL [Ext. revenues in EUR M] FY 2017 Q LTM Q LTM (pro-forma M&A) Consumer Advice Matchmaking Experience & Gift Vouchers Beauty & Lifestyle % organic rev. growth +16% organic rev. growth Q FY LTM Commerce segment 818 1) 787 1) 797 1) External Commerce revenues including travel business until deconsolidation 19

20 NUCOM GROUP NUCOM GROUP BUILDING BLOCKS: BOOST TOTAL VALUE ORGANIC REVENUE CAGR: % EXTERNAL REVENUES [IN EUR] 1) (INCL. M&A ~20% CAGR) BEAUTY & LIFESTYLE ACTIVE M&A PIPELINE ~2BN GROW VERTICALS SERVING STRONG CONSUMER NEEDS ~0.8BN CONSUMER ADVICE MATCH- MAKING EXPERIENCE & GIFT VOUCHERS ADJUSTED EBITDA: ~400M EXECUTE SMART AND ATTRACTIVE M&A OPTIMIZE EBITDA AT SCALE LAUNCH ADJUSTED EBITDA: ~110M LEVERAGE SYNERGIES ACROSS NUCOM ASSETS AND P7S Q LTM 2) ) Chart dimensions are illustrative and do not represent exact amounts; 2) excl. eharmony, incl. travel Source: P7S1 company data; NuCom Group 20

21 CLEAR SYNERGY CASE FOR NUCOM GROUP AND ENTERTAINMENT SERVE CONSUMER NEEDS LEVERAGE MEDIA POWER: LARGEST SOM CUSTOMER NUCOM GROUP DRIVE DIGITAL AND CULTURAL TRANSFORMATION EXPLOIT CONSUMER DATA (E.G., NETID) FUEL NEW BUSINESS MODELS AND SYNERGIES ENTER- TAINMENT BUILDING A CONSUMER-CENTRIC AND TECHNOLOGY-DRIVEN BUSINESS BRANDS PLATFORMS SERVICES CONSUMER DATA 21

22 AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT ProSieben/Andreas Franke 22

23 ENTERTAINMENT ENTERTAINMENT SNAPSHOT STRONG CORE TO BUILD ON STRONG ENTERTAINMENT BRANDS 1) DIVERSIFIED DISTRIBUTION PORTFOLIO 1) LEADING AD SALES PLAYER 1) 2.7BN ENTERTAINMENT REVENUES 2) PAST CAGR % CURRENT CAGR E ±0% FUTURE CAGR % ENTERTAINMENT KPIs TODAY 3) 10% FUTURE 4) 25% TODAY 3) 5% FUTURE 4) 25% ENT. DIGITAL REVENUE SHARE 5) SMART ADVERTISING SHARE OF ENT. ADVERTISING REVENUES 6) THE VOICE OF GERMANY ProSieben/SAT.1/André Kowalski 1) Examples; 2) In EUR, Q LTM; 3) Q LTM; 4) Target for 2023+; 5) Rough indication based on allocation of Entertainment business units to digital vs. non-digital clusters; digital revenues include digital content and revenues generated by digital/tech-driven services; 6) Smart advertising includes targetable products both linear and digital Source: P7S1 company data 23

24 FUTURE-FIT ENTERTAINMENT REACH MONETIZATION CONTENT CONSUMER CONSUMER FIRST LOCAL CONTENT TOTAL DIGITAL AND LINEAR REACH TOTAL MONETIZATION 24

25 ENTERTAINMENT CONSUMER CHANGING CONSUMER PREFERENCES MEDIA CONSUMPTION PATTERNS MEDIA CONSUMPTION MOTIVATION Anytime, anywhere, any device Committed to content brands TV Share memorable moments with family and friends Autonomous & spontaneous Personalized AdVoD Enjoying snackable content (on the go) Impatient & fear of missing out Willing to pay SVoD Deliberately choosing content matching personal interests Source: Trend and target group report Gen Z, November 2017, P7S1 TV Deutschland Consumer Insights 25

26 ENTERTAINMENT CONTENT TWO COMPLEMENTARY STRONG CONTENT PILLARS U.S. FICTION Historically strong performance however, increasing SVoD competition 44% 56% LOCAL CONTENT SHARE 1) SHARE 1) GRID GRID Leverage content across all platforms and increase 360 exploitation/windowing Secure future smash hit U.S. movies and series (incl. library) Flexibilize deal structures for multi-platform usage Increase monetization opportunities Push global content sales and enter exclusive talent partnerships INCREASE RED ARROW STUDIOS IN-HOUSE SHARE OF PRODUCTION TO >30% IN ) 1) Content mix P7S1 core channels Q LTM, market share contribution, in %, Basis: all German TV households (German-speaking), A 14-49, Mon.Sun, 3-3h, Source: AGF in co-operation with GFK,TV Scope/ProSIebenSat.1 TV Deutschland; P7S1 company data; 2) Red Arrow Studios share of TV channels commissioned content spend in % SUPERGIRL Warner Bros. Entertainment Inc. All rights reserved JOKO WINTERSCHEID & KLAAS HEUFER-UMLAUF SAT.1/Marcus Höhn 26

27 ENTERTAINMENT CONTENT INVESTING IN LOCAL CONTENT MATCHING CONSUMER DEMAND Differentiate vs. global digital giants Increase (daily) digital inventory Realize premium monetization STRONG CONSUMER DEMAND EXEMPLARY: Ø AUDIENCE SHARE TVOG 1) 19% 19% 20% Push global content sales Scale Red Arrow Studios 2015 SEASON SEASON SEASON 7 Safeguard distribution business Enable franchising of content Benefit from talent partnerships 1) Basis: all German TV households, A 14-49, Mon-Sun, 3-3h; Source: AGF in cooperation with GfK/videoScope/P7S1 TV Deutschland THE VOICE OF GERMANY SAT.1/Andre Kowalski 27

28 ENTERTAINMENT CONTENT TOTAL BUY-OUT ENABLES BROADER REACH & MONETIZATION SCOPE OF RIGHTS U.S. FICTION GERMAN FICTION 3) LINEAR TV RIGHTS 1) Limited runs Total buy-out CATCH-UP RIGHTS 2) Limited windowing Total buy-out LIBRARY RIGHTS PREVIEW RIGHTS OFFLINE VIEWING To be acquired separately Selected To be acquired separately + Total buy-out Total buy-out Total buy-out BROADEN REACH AND MONETIZATION 3RD PARTY PLATFORM Selected Total buy-out SVOD To be acquired separately Total buy-out 1) No. of runs; 2) 1 st run series; 3) Excluding theatrical feature film co-productions, limitations regarding license territory (limited to German-speaking Europe) and license term (generally 7 years) in case of co-financed TV productions (with public film funding) EINSTEIN SAT.1/Martin Baumdahl 28

29 ENTERTAINMENT CONTENT EXPAND IN ATTRACTIVE LIVE AND LOCAL GENRES FACTUAL SHOW/REALITY COMEDY FICTION TREND SPORTS TAFF ProSieben/Benedikt Müller THE VOICE OF GERMANY SAT.1/Andre Kowalski LUKE DIE WOCHE UND ICH SAT.1/Willi Weber EINSTEIN SAT.1/Wolfgang Ennenbach +80M EUR P.A. ADDITIONAL INVEST IN LOCAL CONTENT 29

30 ENTERTAINMENT CONTENT WINNING LOCALLY: THE VOICE OF GERMANY ATTRACTIVE ON ALL CHANNELS VIEWER ENGAGEMENT DIGITAL EXTENSION 20% Ø AUDIENCE SHARE LINEAR TV 1) >50,000 TVOG TOUR 2017/18 TICKETS SOLD 2) ~75M VIDEO VIEWS 3) ALREADY LEVERAGE AND BUILD-UP FACES >30% UPLIFT ON VIDEO VIEWSFOR NEW SEASON 4) THE VOICE OF GERMANY ProSieben/SAT.1/André Kowalski 1) Season 7, 2017; Base: All German TV households, A 14-49, Mon-Sun, 3-3 h; based on AGF in co-operation with GfK/videoScope; 2) Internal company data; 3) Q LTM; VV Facebook, YouTube, channel web & app, 7TV based on Social Media & Business Intelligence; 4) Total video views vs. previous year Source: P7S1 company data; AGF 30

31 ENTERTAINMENT CONTENT RIGHT BALANCE OF U.S. CONTENT AND LOCAL PRODUCTION 56% U.S. AND 44% LOCAL CONTENT GRID SHARE TODAY 1) INCREMENTAL LOCAL CONTENT INVESTMENT OF ~EUR 80M P.A. U.S. CONTENT CONTINUES TO BE IMPORTANT: RIGHT LEVEL OF QUALITY AND RIGHTS NEEDED SECURE FUTURE OUTPUT DEALS WITH FAVORABLE PRICING AND BETTER SCOPE OF RIGHTS NEW DEAL WITH WARNER BROTHERS FULFILLING REVISED CRITERIA U.S. CONTENT RIGHTS OVERHANG: UP TO EUR 400M POSSIBLE CONTENT WRITE-OFFS CASH IMPACT AFTER TAX OF ONLY UP TO EUR 110M OVER APPROX. FOUR YEARS 1) Content mix P7S1 core channels Q LTM, market share contribution, in %, Basis: all German TV households (German-speaking), A 14-49, Mon.Sun, 3-3h Source: AGF in co-operation with GFK,TV Scope/ProSIebenSat.1 TV Deutschland; P7S1 company data 31

32 ENTERTAINMENT CONTENT KEY ACTIONS EXECUTED BY 2019 U.S. STUDIOS RE-NEGOTIATE U.S. STUDIO DEALS UNTIL EARLY 2019 (WARNER ALREADY COMPLETED, OTHER STUDIOS APPROACHED) LOCAL CONTENT STRATEGY INVEST +EUR 80M P.A. IN ATTRACTIVE LOCAL CONTENT ~50% IN PROSIEBEN AND ~50% IN SAT.1 >90% IN RELEVANT ACCESS AND PRIME TIME WITH HIGH DIGITAL RELEVANCE INCREASE RED ARROW STUDIOS IN-HOUSE SHARE OF LOCAL CONTENT PRODUCTION TO UP TO 20% IN 2019 (E.G., NEW SERIAL COMEDY PT 1) SHOW FOR SAT.1, NEW STRIPPED DAILY DT 2) SHOW FOR SAT.1, NEW SERIAL ENTERTAINMENT PT 1) SHOW FOR PROSIEBEN) ORGANIZATION FURTHER OPTIMIZE TO DRIVE ONE ENTERTAINMENT ACROSS ENTITIES AND SIMPLIFY OPERATIONS GERMANY S NEXT TOPMODEL ProSieben/Willi Weber 1) Prime time; 2) Daytime 32

33 ENTERTAINMENT REACH EXPAND TO TOTAL AND SMART REACH TODAY FUTURE LINEAR TV REACH TOTAL REACH + SMART REACH P7S1 WITH STRONG PRESENCE IN TV REACH. MASS REACH MEDIUM; DESPITE SLIGHT REACH DECLINE ESP. IN YOUNG TARGET GROUPS COMBINE LINEAR TV REACH WITH DIGITAL REACH. COMPENSATING DECLINE OF TV REACH FOR YOUNGER AUDIENCES MAKE TOTAL REACH SMART: TARGETABLE AUDIENCES BASED ON DATA INSIGHTS. INCREASING VALUE OF INVENTORY TV REACH TOTAL REACH X NET CPM VS. CLASSIC/ NON-DATA ADS 1) 1) Internal pricing analysis on targetable products both linear and digital Source: P7S1 company data 33

34 ENTERTAINMENT REACH ESTABLISH TOTAL REACH AS ONE KEY METRIC TOTAL REACH 1) TOTAL MINUTES 2) 0.5 MILLION 800 MILLION DIGITAL CHANNELS >2.5M VIDEO VIEWS WEB-ONLY CONTENT 3) OWN APPS AND WEBSITES TV.de 0.5 MILLION MILLION 600 MILLION + 4,100 MILLION GERMANY S NEXT TOPMODEL ProSieben/Willi Weber #1 ENTERTAINMENT BRAND ON INSTAGRAM 4) 9.7M 5,500M AVERAGE EPISODE SEASON YTD SEPT ) Number of people reached with an average episode of last GNTM season, all people 3+, no double counting, linear TV (live, +3 days time shift) and websites (Laptop/Browser) as basis from AGF data and proxy for incremental reach through Apps (Mobile, SmartTV) and YT (Digital Channels), rounded; 2) Total minutes watched YTD September 2018, LINEAR // Basis (households): all German TV households, 3+, Mon-Sun, 3-3 h; Source: AGF in cooperation with GfK/videoScope/P7S1 TV Deutschland; DIGITAL // Basis (devices): TV websites and apps, 7TV, YouTube (without advertising), Germany only; Source: Google Analytics/YouTube Analytics; 3) Let s Face Reality web format, May September 2018, PSD BI // Format Report, Digital Video Views on ProSieben O&O channels (Web, App, Smart TV, HbbTV, Syndication) and YouTube; 4) Followers on Instagram in comparison to TV formats and entertainment brands in Germany, October

35 ENTERTAINMENT REACH BOOST TOTAL REACH BY ALL-OUT DIGITAL ATTACK FAN COMMUNITIES AGGREGATOR PLATFORMS DIGITAL CHANNELS GERMANY S NEXT TOPMODEL ProSieben/Willi Weber 95M VIDEO VIEWS OF TOP 5 FORMATS 1) TARGET: TARGET: 10M USERS 2) USERS 2) 10BN MONTHLY VIDEO VIEWS WORLDWIDE 3) OWNED & OPERATED EMERGING INTO FAN APPS IMMERSIVE DIGITAL CONTENT AGGREGATOR PLATFORM FOR LOCAL CONTENT INVITING ALL PLAYERS 1) GNTM, TVOG, taff, PBB, FFS; Q LTM, excl. 7TV; 2) Ambition; 3) Average July to September 2018, excluding France, YouTube analytics; 4) Includes TV and talent channels, Social Blade, Top Lists, ranked by subscribers Source: P7S1 company data; YouTube analytics PRODUCTION HOUSE WITH 20% OF TOP 100 MOST POPULAR CHANNELS IN GERMANY 4) FUTURE ENTERTAINMENT FOR YOUNGER AUDIENCES 35

36 ENTERTAINMENT REACH GALILEO FAN COMMUNITY TOTAL VIEWING TIME SEPTEMBER 2018 [IN MIN BN] % Digital TV I DIDN T KNOW THAT [GALILEO] IS ALSO ON TV (YOUNG MALE, 22-YEARS OLD) 3) 80% 20% of total viewing time already on digital platforms 1) AUGMENTED REALITY APP LAUNCHED AMAZON ALEXA SKILL LAUNCHED TOP 10 YOUTUBE CHANNEL 2) 1) Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h, (1 min of consecutive viewing); Source AGF in cooperation with GfK/videoScope/P7S1 TV Deutschland; 2) Basis: Monthly YouTube video views Germany (63m video views in September 2018); Source: Tubular; 3) Source: Trend and target group report Gen Z, August 2017, P7S1 TV Deutschland Consumer Insights. GALILEO ProSieben 36

37 ENTERTAINMENT REACH CELEBRITY BIG BROTHER FAN COMMUNITY 29M VIDEO VIEWS DIGITAL CHANNELS (x25) 3) UP TO 8% LATE NIGHT SHOW ON SIXX 1) 14M VIDEO VIEWS OWN APPS & WEBSITES (+28%) 2) 126K INSTAGRAM FOLLOWERS (+289%) 4) UP TO 20% BEST TV MARKET SHARE SINCE ) EXCLUSIVE DIGITAL CONTENT HIGHLIGHTS 1) Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h. Source: AGF in cooperation with GfK/videoScope/ProSiebenSat.1 TV Deutschland; 2) PSD BI and Format Report, Digital Video Views on SAT.1 O&O channels (Web, App, Smart TV, HbbTV) & Syndication, Germany only; Percentage increase compares season 6 ( ) with the previous season ( ); 3) Studio71: Video Views on YouTube, Germany only, , increase compared to the previous season ( ); 4) Percentage increase compares Instagram followers after season 6 ( ) with the number of followers after the previous season ( ). PROMI BIG BROTHER SAT.1/Marcus Höhn 37

38 ENTERTAINMENT REACH 7TV: BUILD JOINT AGGREGATOR PLATFORM AIMING FOR 10M USERS (~2.5M EXISTING USER BASE 1) ). LARGE AMOUNT OF LOCAL CONTENT EXCLUSIVE FILMS, ORIGINALS & SERIES. LIVE SHOWS & SPORT EVENTS SIMPLE PRICING CONCEPT >200 PEOPLE WORKING ON PROJECT PREMIUM ( ) EXCLUSIVE ENTERTAINMENT AND SPORTS CONTENT AND ADDITIONAL FEATURES IN 2019 INVEST TO CREATE THE LEADING GERMAN ENTERTAINMENT HUB BASIC (AD) ACCESS TO LIVE TV AND CATCH-UP 2) ADDRESSING ADDITIONAL PARTNERS 1) Based on number of subscribers already using 7TV, maxdome and Eurosport Player, October 2018; 2) Only extract of all available channels Source: P7S1 company data 38

39 ENTERTAINMENT REACH STUDIO71 GERMANY >1BN monthly video views in Germany 1) ~25% Revenue CAGR over the last three years 2) 25% of the Top-100 YouTube channels are S71 talents 1) of the 10 most popular TV YouTube channels are from P7S1 1) web-episodes produced for third parties in 2018 branded campaigns in K pizzas sold 3) Live events sold out Launch in November ) Studio71 Germany (generated across the German S71 network) as of 30th September 2018; Source: YouTube Analytics; 2) Revenue growth Studio71 Germany from Q LTM to Q LTM; 3) Period: Week 42, 2018; Source: Internal data, Studio71; 3) Germany, Period: CONCRAFTER Studio 71 39

40 ENTERTAINMENT REACH VERTICAL CONTENT PRODUCTS 58% of Germans <25 years are monthly users on Instagram 1) 25MIN daily average usage time on Instagram 1) +80% +60% just 12 months 2) ) more time spent watching video in active user growth of Instagram stories in 1) Base: German speaking population, 14-29, Q3 2018; Source: ViewTime Report, SevenOne Media, forsa; 2) Period: June 2017 to June 2018; Internal Instagram data, Instagram.com, 2018 Studio 71 40

41 ENTERTAINMENT REACH KEY ACTIONS EXECUTED BY TV: FOCUS ON LAUNCH OF NEW PLATFORM BY THE END OF H STUDIO71 GERMANY: INCREASE TV CONTENT ON YOUTUBE (YTD +74%) 1) AND START ON FACEBOOK & INSTAGRAM BY Q2 2019; GROW INFLUENCER CONTENT ON ALL PLATFORMS FAN COMMUNITIES: LEVERAGE TOP 15 FORMAT BRANDS WITH 360 CHANNEL EXPLOITATION AND ACCELERATE GROWTH THROUGH OUR PUBLISHER ECOSYSTEM GLOMEX (YTD +260%) 2) DIGITAL ORIGINALS: DEVELOP NEW DIGITAL ORIGINALS CATERED TO YOUNGER TARGET GROUPS AND MONETIZE CROSS-PLATFORM NEW PRODUCTS: RED BUTTON PORTAL RE-LAUNCHED, START DIGITAL FIRST LIVE SHOWS, DEVELOP PRODUCTS BEYOND PURE VIDEO TOTAL REACH: TOTAL REACH METRIC READY IN H GERMANY S NEXT TOPMODEL ProSieben/Willi Weber 1) Year-to-date growth (last 12 months), YouTube video views of P7S1 TV formats across the German S71 network; 2) Year-to-date growth (last 12 months), video views of Glomex inventory 41

42 ENTERTAINMENT MONETIZATION ATTRACTIVE GERMAN AD SALES MARKET LONG-TERM STABLE TV AD MARKET UPSIDE POTENTIAL FOR VIDEO NET ADVERTISING SPEND, GERMANY 1) >40% stable P7S1 TV ad market share 2) Digital MEDIA MIX 1) [net, in %] Print & Other TV % % Others Print Digital Other 3) Digital Video TV 1) Magna Global June 2018; 2) Nielsen Media Company October 2018; 3) Digital Other = Display, Social Display, Search, -Marketing, DOOH and Other 42

43 DIGITAL TV ENTERTAINMENT MONETIZATION WITH MASSIVE MONETIZATION POTENTIAL SEGMENT SIZES BY 2023 VS ) [net, in EUR BN] ) ) Growth 2) TOTAL AD MARKET ~ 21.3 ~ % MARKET SEGMENTS SERVED BY P7S1 MARKET SEGMENTS NOT SERVED BY P7S1 TV & ADDRESSABLE TV 3) VIDEO DOOH PERFORMANCE DIGITAL FREESHEETS ~ 4.6 ~ 1.0 ~ 0.1 ~ 7.0 ~ 0.04 ~ 4.8 ~ 3.6 ~ 0.4 ~ 8.8 ~ 0.1 PHYSICAL FREESHEETS ~ 1.8 ~ 1.7 TRADITIONAL OOH ~ 1.1 ~ 1.0 PRINT (EXCL. FREESHEETS) ~ 4.1 ~ 1.9 CINEMA & RADIO ~ 0.9 ~ % -8% ~18BN ADDRESSABLE MARKET FOR P7S1 AD SALES BY ) +7% GROWTH OF MARKET SEGMENTS SERVED BY P7S1 1) <3% 2018 SHARE IN DIGITAL MARKET SEGMENTS SERVED BY P7S1 1) 1) Estimates based on Magna Global June 2018; 2) CAGR ; 3) Magna Global Broadcast TV + P7S1 own Add. TV estimate Note: Digital Others (Branding Display) not included in chart above: EUR 0.6BN in 2018 and EUR 0.5BN in

44 DIGITAL TV ENTERTAINMENT MONETIZATION OUR PORTFOLIO FULLY ALIGNED WITH MARKET GROWTH AWARENESS ENGAGEMENT CONVERSION TV & ADDRESSABLE TV LINEAR TV CAMPAIGNS & SPECIAL ADS ADDRESSABLE TV SWITCH-INS & SPOTS VIDEO DIGITAL VIDEO ADS MARKET SEGMENTS SERVED BY P7S1 DOOH OUTDOOR SCREENS NEW DATA-DRIVEN INFLUENCER ADS SCREENS AT RETAIL PERFORMANCE NEW PERFORMANCE-DRIVEN SOCIAL MEDIA NEW PERFORMANCE RETAIL MEDIA DIGITAL FREESHEETS SALES PROMO APP TOTAL REACH 360 SMART REACH 44

45 ENTERTAINMENT MONETIZATION TOTAL REACH TOTAL REACH DRIVEN BY OWN AND 3RD PARTY REACH OWN INVENTORY 3RD PARTY INVENTORY OWN TV REACH OWN DIGITAL REACH STUDIO71 REACH REACH PARTNERSHIPS REACH NETWORKS ~49M 1) ~24 M 2) + ~16 M 3) + ~26 M 4) ~51M 5) all P7S1 platforms EXTENDING POWERFUL TV REACH SUPERIOR MARKETABILITY VIA ONE KPI MORE INVENTORY FOR TARGETING SOLUTIONS MORE 360 MONETIZATION OPPORTUNITIES PREMIUM PRICING FOR INCREMENTAL REACH 1) AGF/GfK, VideoScope, September 2018; 2) AGOF September 2018; 3) Studio71; 4) AGOF September 2018; 5) MediaActivity Guide 2018 (SevenOne Media, forsa) Note: Reach shown as net reach per month 45

46 ENTERTAINMENT MONETIZATION 360 MONETIZATION OF VALUE CHAIN 360 MONETIZATION OF THE FULL VALUE CHAIN CUT-IN ON TV ONLINE MOBILE PR SPONSORINGS $ >40% OF AD REVENUES WITH GERMANY S NEXT TOPMODEL FORMAT VIA SPECIAL ADS 1) TV ADVERTORIAL MUSIC PRODUCT PLACEMENT EVENTS +30% MARK-UP POSSIBLE ON SPECIAL AD PRICING VS. CLASSIC ADS 2) SWEEPSTAKES SOCIAL PROMO LICENSING +5% YEARLY GROWTH RATE FOR SPECIAL AD REVENUES 3) 1) Internal company analysis of ad sales revenues for Germany s Next Topmodel format 2018; 2) Internal company information, comparing avg. pricing of classic campaigns vs. special ad campaigns 3) Internal company information, special ad sales revenue growth CAGR Source: P7S1 company data 46

47 ENTERTAINMENT MONETIZATION SMART REACH SMART REACH FURTHER INCREASING MONETIZATION TOTAL REACH + SMART REACH SMART REACH INVENTORY ADD. TV ~20% OF TV DEVICES IN HOUSEHOLDS IN ) DIGITAL ~100% OF DIGITAL INVENTORY BY ) ADDRESSING TOTAL AUDIENCES BASED ON E.G., SPECIAL TARGET GROUPS ADDRESSING INDIVIDUAL AUDIENCES BASED ON DATA INSIGHTS E.G., Age SOCIODEM GEO PURCHASE INTENT MONETIZATION UPLIFT ~2.5X NET CPM VS. CLASSIC TV SPOTS 2) + ~1.5X NET CPM VS. NON-DATA ADS 3) ACCESS TO NEW BUDGETS AND CLIENTS CROSS-DEVICE DATA DATA COOPS SMART ADVERTISING REVENUE SHARE 4) TODAY 5) 5% FUTURE 6) 25% 1) Add. TV: based on 61M TV devices in German households of which 12M are connected HbbTV devices; digital internal planning by SevenOne Media; 2) Internal pricing analysis based on 30 second TV spot length; 3) Internal pricing analysis comparing avg. CPM of digital video ad with avg. mark-up for data ad (bookable via programmatic); 4) Smart advertising includes targetable products both linear and digital; 5) Q LTM; 6) 2023E Source: P7S1 company data 47

48 ENTERTAINMENT MONETIZATION SMART REACH ACCESS TO HUGE BUDGETS AND NEW CLIENT SEGMENTS BUDGETS [EUR] 1) CLIENTS ~5.9BN MARKET POTENTIAL EXISTING NEW BUSINESS ~3.3BN ~1.7BN ~0.9BN PERFORMANCE - DRIVEN DECENTRAL SMALL BRANDS NATIONAL + MEDIUM-SIZED DECENTRAL & LOCAL 1) Internal company estimate for 2017, based on Nielsen data and Magna Global data 48

49 ENTERTAINMENT MONETIZATION SMART REACH ADDRESSABLE TV SMART REACH PORTFOLIO TODAY SWITCH-INS GEO TARGETING BEHAVIORAL TARGETING ADDRESSABLE TV SPOT TARGETED AUDIENCE GENERATION 50+ AUDIENCE TARGETING RE- TARGETING FAMILY WITH KIDS SINGLE HH ~12M DEVICES REACHABLE WITH HBBTV 1) 453M CONTACTS/ MONTH 1) >270 ~5M DEVICES 1 ST BETA >20 IN ) WITH HBBTV 1.5 1) WITH TARGETING 3) CAMPAIGNS REACHABLE CAMPAIGN IN JULY CAMPAIGNS SINCE SEPT ) Sell-out <20% OF ADDRESSABLE TV INVENTORY 2018 WITH SIGNIFICANT GROWTH POTENTIAL 4) Sell-out <1% OF TOTAL TV INVENTORY POTENTIAL (2018) AS NEW PRODUCT LAUNCHED 4) 1) Internal estimate based on web tracking information October 2018; 2) Internal information 3) Targeting combination of decentral targeting with HHNI (household net income) targeting; 4) Internal information 49

50 ENTERTAINMENT MONETIZATION SMART REACH ADDRESSABLE TV PRODUCT EXAMPLES HOUSEHOLD TARGETING TV CAMPAIGN OPTIMIZATION MALE SINGLE HH FEMALE SINGLE HH TV SPOT ADD. TV SWITCH-IN + +26% +41% UPLIFT IN CTR VS. UPLIFT IN CTR VS. NON-TARGETED 1) +20% +30% NON-TARGETED 1) INTENSIFICATION 2) CONTACT INCREMENTAL +77% INCREASE IN AD REACH 2) AWARENSS 2) TARGETED ADS & VISUALS INCREASING CAMPAIGN PERFORMANCE MORE CAMPAIGN CONTACTS INCREASING CAMPAIGN PERFORMANCE 1) Single household targeting campaign, CTR = click through rate on microsite; 2) Programmatic retargeting campaign, ad awareness = aided ad awareness 50

51 ENTERTAINMENT MONETIZATION SMART REACH OUR UPDATED DIGITAL SMART REACH PORTFOLIO EXAMPLES SALES APP FOR REGIONAL PROMOS DATA-DRIVEN VIDEO CAMPAIGNS PERFORMANCE RETAIL MEDIA DATA-DRIVEN INFLUENCER ADS PERFORMANCE- DRIVEN SOCIAL MEDIA + NEW NEW NEW ~2M app downloads 1) ~900M VVs/month 1) >80 >8K >200 online shops 1) influencers 1) clients 1) EUR ~1.8BN FREESHEETS MARKET 3) EUR ~8.8BN PERFORMANCE MARKET 2) 1) Internal information; 2) Magna Global June 2018, total performance market representing full market potential as P7S1 participates in full market with key assets and technology 3) Magna Global June 2018, non-digital freesheets market representing full market potential as increasingly replaced by digital freesheets market 51

52 ENTERTAINMENT MONETIZATION - TECHNOLOGY STRONG KEY TECH ENABLERS PERFORMANCE TECHNOLOGY ADVERTISING TECHNOLOGY > LARGEST PERFORMANCE AGENCY FOR SOCIAL IN GERMANY 1) > ACCESS TO ALL PLATFORMS & PROGRAMMATIC INVENTORY DSP DMP ATTRI- BUTION AD- SERVER SSP > TECHNOLOGY FOR KPI-DRIVEN SOLUTIONS FOR ALL P7S1 MEDIA VIDEO & DISPLAY SOCIAL MEDIA INFLUENCERS + FOCUS ON ADDRESSABLE TV > OWN INDEPENDENT AD TECH STACK > GDPR COMPLIANT & TRANSPARENT ACROSS VALUE CHAIN > FOCUS ON PREMIUM VIDEO & ADDRESSABLE TV CORE ENABLERS FOR ADDRESSABLE, PROGRAMMATIC & BIDDABLE SMART REACH 1) No comparable full service agency with similarly large client base and media volume for Social Performance Media in Germany existing Source: esome market analysis 52

53 ENTERTAINMENT MONETIZATION YIELD MANAGEMENT YIELD MANAGEMENT VIA 4 KEY LEVERS PROGRAMMATIC TRADING SMARTER PRICING PROGRAMMATIC GUARANTEED PROGRAMMATIC AUCTIONING OPTIMIZE PERFORMANCE VALUE FIXED PRICE BIDDING INVENTORY MANAGEMENT BETTER MONETIZATION EFFECTIVE NET CPM GROWTH +2-3% 1) P.A. PERFORMANCE + + -BASED TV ) POTENTIAL P.A. TARGET- GROUP PRICING +10% 3) ON TOP BOOKINGS ADVANCED ANALYTICS AD SERVER UPGRADE NEW BOOKING INTERFACES MEASURABILITY TECH-OPTIMIZED MATCHING OF DEMAND & SUPPLY DATA INSIGHTS ON DEMAND, PERFORMANCE & PRICING DATA-DRIVEN SOLUTIONS CROSS-MEDIA ATTRIBUTION 1) Internal SevenOne Media estimate for potential price increase per year; 2) Internal SevenOne Media estimate in EUR M ad sales revenues per year 3) Representative client example: on top-booking in % of commitments realized via target-group pricing approach 53

54 ENTERTAINMENT MONETIZATION SALES ORGANIZATION SALES SET-UP COVERING ALL BUDGETS AND CLIENTS EXISTING + NEW NATIONAL CLIENTS NATIONAL START UPS MID- SIZED CLIENTS DECENTRAL & LOCAL CLIENTS INTERNATIONAL START UPS BRANDING BUDGETS + PERFORMANCE BUDGETS + SALES BUDGETS 54

55 ENTERTAINMENT MONETIZATION SUMMING IT UP: ENTERTAINMENT BUILDING BLOCKS EXTERNAL REVENUES [IN EUR] 1) ORGANIC REVENUE CAGR: +0-5% (INCL. M&A UPPER END OF RANGE) M&A ~3.2BN SMART & AD TECH DISTRIBUTION/ SUBSCRIPTION/ ADJACENT DIGITAL ADJUSTED EBITDA: ~2.7BN ADJUSTED EBITDA: ~0.9BN CORE TV AD 360 MONET./ PRICING ~1BN Q LTM % 5% 25% 25% ENT. DIGITAL REVENUE SHARE 2) SMART SHARE OF ENT. ADV. REVENUES 3) ENT. DIGITAL REVENUE SHARE 2) SMART SHARE OF ENT. ADV. REVENUES 3) 1) Chart dimensions are illustrative and do not represent exact amounts; 2) Rough indication based on allocation of Entertainment business units to digital vs. non-digital clusters; digital revenues include digital content and revenues generated by digital/tech-driven services; 3) Smart advertising includes targetable products both linear and digital Source: P7S1 company data 55

56 ENTERTAINMENT MONETIZATION AD SALES KEY ACTIONS EXECUTED BY 2019 TOTAL REACH AND SMART REACH DIGITAL 3RD PARTY INVENTORY EXTENDED BY 5 NEW PARTNERS WITH MORE THAN 30 PLATFORMS H % OF SWITCH-INS PROGRAMMATIC & BIDDABLE H PROGRAMMATIC ADDRESSABLE TV SPOTS H ROADSHOW TO KEY ADVERTISING CLIENTS TO MARKET SALES STRATEGY STILL IN 2018 TECH ENABLERS AND INVENTORY MANAGEMENT TECH SYNERGIES WITH ESOME FOR SOCIAL, VIDEO & DISPLAY 2018/ ADDRESSABLE TV H SCALING OF VIRTUAL MINDS TECHNOLOGY FOCUSING ON VIDEO & ADDRESSABLE TV H FULL LAUNCH OF CROSS-DEVICE BRIDGE H UPGRADE OF DIGITAL BOOKING TOOL AND AD SERVER TO OPTIMIZE SELL-OUT H ORGANIZATION BUILD ONE INTEGRATED SALES ORGANIZATION FOR BOTH TV AND DIGITAL GERMANY S NEXT TOPMODEL ProSieben/Willi Weber 56

57 ENTERTAINMENT MONETIZATION DISTRIBUTION/SUBSCRIPTION FULL COVERAGE ON ALL DISTRIBUTION CHANNELS TRADITIONAL DISTRIBUTION PARTNERS SECURE REACH AND DRIVE HD PENETRATION DIGITAL DISTRIBUTION PARTNERS EXTEND REACH AND ACCESS NEW REVENUE SOURCES Satellite Cable IPTV Terrestrial DVB-T2 17.4M HH 1) 17.5M HH 1) 3.1M HH 1) 2.5M HH 1) OTT/ Mobile Phones/ tablets Connected Smart TVs Streaming devices New Player New Player New Player New Player Ambition level: 10M users with direct impact on distribution revenues Note: HH = households 1) Digitalisierungsbericht Video August

58 ENTERTAINMENT MONETIZATION - DISTRIBUTION/SUBSCRIPTION CONTINUOUS DISTRIBUTION REVENUE GROWTH DISTRIBUTION REVENUES [IN EUR M] 1) MARKET TRENDS AND GROWTH LEVERS DISTRIBUTION BUSINESS WILL CONTINUE TO BENEFIT FROM DIGITIZATION +17% CAGR HD & PayTV Uplift New TV functions Competition in the satellite, IPTV, and OTT market with increased HD and PayTV penetration Upside potential due to attractive offers with NPVR, Time Shift and Instant Restart UHD Increasing demand for UHD content distribution strengthened by already 7M UHD devices 2) in market 55 DTH SD SWITCH-OFF 3) Acceleration of HD and UHD adoption through potential SD-switch-off in ) Q LTM 1) 5G Increased demand for OTT offerings through 99% 5G population coverage by ) 1) Distribution DE/AT/CH w/o ad revenues; 2) UHD devices as of Q1 2018, source: GfK, gfu; 3) As per announcement of ARD & ZDF, PSB aim for DTH SD switch off in 2020; 4) Target announced by Deutsche Telekom 58

59 ENTERTAINMENT MONETIZATION - DATA BECOMING A DATA SCIENCE DRIVEN ORGANIZATION OUR MISSION OUR EXECUTION APPROACH Build a data-driven consumer insights framework to enable a true end-to-end entertainment value proposition Monetization CONSUMER DATA UNIVERSE Reach Build a unified and central consumer data ecosystem entailing a central and unique ID for each user to support a heterogenous stakeholder landscape Provide data science capabilities, a scalable data organization and operating model to ensure data-driven product and services Our ultimate aim is to understand consumers in every day situations, predict next day interests and ensure a precise personalized end-to-end entertainment experience Be innovative, fast and unlock never seen insights by connecting B2B, B2C and content data BE RELEVANT WITH THE RELEVANT CONTENT AT THE RIGHT TIME 59

60 ENTERTAINMENT MONETIZATION DISTRIBUTION & DATA KEY ACTIONS EXECUTED BY 2019 DISTRIBUTION EXTEND 4 MAJOR DISTRIBUTION DEALS FOCUSED ON HD, PAY TV AND NEW RIGHTS INCL. DEAL VALUE INCREASE, CLOSE 4 OTT DISTRIBUTION DEALS GROW NATIVE UHD CONTENT TO >70 HOURS TO PUSH PREMIUM CONTENT EXPERIENCE DATA CONNECT OFFLINE & ONLINE DATA TO BUILD A UNIFIED AND CENTRAL CONSUMER DATA ECOSYSTEM AS NUCLEUS FOR ALL FUTURE DATA SCIENCE DRIVEN PRODUCTS AND INSIGHTS BY END OF Q ROLL OUT NETID TO UP TO 200 PARTNERS (FULLY COMPLIANT WITH UPCOMING E-PRIVACY REGULATION) DEVELOP NEW PREDICTION MODEL FOR AGE/GENDER BASED AD TARGETING PRODUCTS, ENABLING BEST-IN-CLASS PREDICTION ACCURACY BY Q AUTOMATE DATA SCIENCE DRIVEN INTEREST AND CONSUMER TARGETING PRODUCTS BY Q GERMANY S NEXT TOPMODEL ProSieben/Willi Weber 60

61 AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT ProSieben/Andreas Franke 61

62 RED ARROW STUDIOS RED ARROW STUDIOS SNAPSHOT OUR BUSINESS GERMAN-SPEAKING CONTENT CREATION INTERNATIONAL CONTENT CREATION AND DISTRIBUTION DIGITAL CREATION AND INFLUENCER MANAGEMENT 20 LEADING COMPANY 1) COMPANIES GERMAN PRODUCTION PRODUCTION 700+ INT. SALES CLIENTS 10BN MONTHLY VIDEO VIEWS WORLDWIDE 2) ~0.5BN EUR REVENUES 3) 1) Germany s most successful production companies based on the 100 most seen formats, A14-49; DWDL.de; 2) September 2018, excl. France; YouTube analytics; 3) Q LTM; external revenues Source: P7S1 company data; DWDL; YouTube analytics 62

63 RED ARROW STUDIOS NEW DIRECTION: RED ARROW STUDIOS GERMAN-SPEAKING CONTENT CREATION INTERNATIONAL CONTENT CREATION AND DISTRIBUTION DIGITAL CREATION AND INFLUENCER MANAGEMENT RAS SHARE OF P7S1 S LOCAL COMMISSIONED CONTENT >30% % 2018 LATEST U.S./UK PICK-UPS 1) >1,300 CHANNELS WORLDWIDE 2) 10BN MONTHLY VIDEO VIEWS WORLDWIDE 3) BUILD AND GROW LOCAL FOOTPRINT PARTNER WITH BEST CREATORS MANAGE FOR SUCCESS EVALUATE PARTNERSHIPS FOR SCALE SCALE GLOBALLY DRIVE PROFITABILITY Note: RAS = Red Arrow Studios 1) The Weekly season 1, The Restaurant That Makes Mistakes season 1, Bosch season 5, Hollywood Medium season 4; 2) Data as of September 2018, YouTube channels only; 3) Average July to September 2018, excluding France, YouTube analytics Source: P7S1 company data; YouTube analytics 63

64 RED ARROW STUDIOS GERMAN CONTENT ECOSYSTEM LOCAL EXPERTISE FOR THE GERMAN MARKET RED ARROW STUDIOS WITH TRACK RECORD OF LOCAL SUCCESS P7S1 OTHER TV STATIONS Up to 9.1% Up to 12.0% Upcoming Season 6 (9 episodes) Season 9 (7 episodes) Season 16 (12 episodes) 1) on VOX Season 1 (3 episodes) on VOX Up to 11.5% Up to 13.4% Season 5 (8 episodes) Season 2 (8 episodes) Season 2 (16 episodes) on ZDF Season 2 (80 episodes) on RTL II 1) U.S. format version Basis: all German TV households, A 14-49, Mon-Sun, 3-3 h Source: TV Deutschland GmbH with AGF in cooperation with GfK/videoScope/ProSiebenSat.1 TV Deutschland 64

65 RED ARROW STUDIOS GERMAN CONTENT ECOSYSTEM ANCHORED BY A LEADING GERMAN PRODUCTION COMPANY DIVERSIFIED FORMAT PORTFOLIO DIGITAL KNOWHOW Excellent format mixture from strong format licenses (e.g., Germany s Next Topmodel by Heidi Klum), Red Arrow Studios catalog (e.g., Married at First Sight) and self-developed ideas (e.g., Galileo Big Pictures) Launch of a Brand & Digital Studio enabling new business opportunities (e.g., marketing services for McDonalds, Sony PlayStation, ING DiBa, Samsung and ABOUT YOU) ~50% of revenues generated with original content 1) 70% Returning production rate 2) ~25% Revenue CAGR from ) ~300 Employees at 2 HQs BROAD CUSTOMER BASE Copyright: ProSieben/Willi Weber 1) 50% of Redseven revenues (as of Q LTM) were generated with formats owned by Red Arrow Studios or Redseven 2) % of revenues with returning productions (as of Q LTM) 3) As of Q LTM Note: Leading TV producer according to DWDL producer ranking 65

66 RED ARROW STUDIOS EXPAND INTERNATIONAL FOOTPRINT MOREOVER WE CONTINUE TO GROW INTERNATIONALLY BALANCED MIXTURE OF NEW AND RETURNING SHOWS DRIVES ONGOING SUCCESS SCRIPTED REALITY ENTERTAINMENT FACTUAL ENTERTAINMENT Season 3 (15 episodes) (USA) FACTUAL Season 5 (10 episodes) (USA) Season 7 (17 episodes) (USA) Season 13 (8 episodes) (UK) Season 7 (18 episodes) (USA) Season 1 (6 episodes) (USA) Feature Documentary (USA) Season 2 (8 episodes) (UK) Season 2 (20 episodes) (GER) Season 4 (8 episodes) (USA) Season 1 (6 episodes) (USA) Season 1 (21 episodes) (Israel) Season 3 (3 episodes) (GER) Season 16 (12 episodes) (USA) Season 1 (8 episodes) (DK) Season 2 (5 episodes) (UK) Season 4 (10 episodes) (USA) Feature Film (UK) Season 6 (9 episodes) (GER) Season 9 (10 episodes) (USA) 66

67 RED ARROW STUDIOS EXPAND INTERNATIONAL FOOTPRINT EXTENSIVE PROJECT PIPELINE WE HAVE VARIOUS NEW PICK-UPS AND DISTRIBUTION DEALS TO HIGHLIGHT WORLDWIDE DISTRIBUTION RIGHTS 1) NEW PICK-UPS EXTENDED NEW PICK-UPS Season 1 (30 episodes) Season 1 (5 episodes) WORLDWIDE DISTRIBUTION RIGHTS 2) Season 5 (10 episodes) (USA) Season 4 (8 episodes) Season 1 (3 episodes) Season 1 (8 episodes) Season 2 (5 episodes) Season 2 (8 episodes) RED ARROW STUDIOS INTERNATIONAL WITH STRONG DISTRIBUTION PIPELINE DRIVEN BY LONG-TERM, MULTI-WINDOW, LIBRARY-ORIENTED IP INVESTMENTS 1) Excl. USA; 2) Excl. German-speaking Europe 67

68 RED ARROW STUDIOS DRIVE & SCALE STUDIO71 GLOBAL DIGITAL STUDIO PLATFORM WITH IMPRESSIVE TRACK RECORD Top 1 & 2 Non-music YouTube Partner 1) 1,334 No. of web channels 2) 10BN Monthly video views 2) >1,100M 186M 44BN No. of YouTube subscribers 2) Monthly engagements 2) Monthly min watched 2) Continuously leveraging intra-group synergies and looking for scale opportunities 1) #1 in Germany and #2 in USA (according to Comscore as of August 2018); 2) September 2018, excl. France; YouTube analytics 68

69 RED ARROW STUDIOS DRIVE & SCALE STUDIO71 STUDIO71 WITH BROAD PRODUCTION CAPABILITIES KEY CONTENT PRODUCED FOR INTERNATIONAL CUSTOMERS AND VARIOUS PLATFORMS SVoD/TVoD YouTube Red YouTube Germany AdVoD Facebook Snapchat TV/Other 1) Digital program of German public broadcaster ARD and ZDF FUNK Germany 1) History UK Channel 69

70 RED ARROW STUDIOS DRIVE & SCALE STUDIO71 MULTI-PILLAR POSITIONING CONTINUOUSLY EXPAND HIGH MARGIN BUSINESS Original content Media sales Branded solutions +50% YTD 2018 vs. YTD ) growth in U.S. content syndication revenues +20% FY 2018 vs. FY 2017 merchandising revenue growth expected Licensing & merchandising YouTube ad sales Margin potential 5x U.S. media sales in 2018 compared to 2017 increase of U.S media sales on YouTube through brandsafety infrastructure various examples for expansion of ancillary activity with key talent (e.g., Binding of Isaac card game, event tour with VictoriaSarina) 1) YTD as of September 70

71 RED ARROW STUDIOS RED ARROW STUDIOS BUILDING BLOCKS EXTERNAL REVENUES [IN EUR] 1) ORGANIC REVENUE CAGR: +5-10% (INCL. M&A ~10% CAGR) M&A ~0.8BN STUDIO71 ~0.5BN REDSEVEN RED ARROW STUDIOS INTERNATIONAL ADJUSTED EBITDA: ~80M ADJUSTED EBITDA: ~20M Q LTM % >30% RAS SHARE OF P7S1 S LOCAL COMMISSIONED CONTENT RAS SHARE OF P7S1 S LOCAL COMMISSIONED CONTENT Note: RAS = Red Arrow Studios 1) Chart dimensions are illustrative and do not represent exact amounts; external view does not include internal revenues with ProSiebenSat.1 TVDeutschland (RedSeven) Source: P7S1 company data 71

72 RED ARROW STUDIOS KEY ACTIONS EXECUTED BY 2019 GERMAN CONTENT ECOSYSTEM NEW GENRE COMMITMENTS WITH FOCUS ON EXPANSION OF SCRIPTED CONTENT SECURE NEW TALENT PARTNERSHIPS AND OPEN NEW INTERNATIONAL FORMAT PIPELINE WITH RAS PARTNER COMPANIES CONTINUE BOLT-ON ACQUISITIONS IN STRATEGICALLY MOST IMPORTANT AREAS INTERNATIONAL FOOTPRINT ROLL-OUT STUDIO PRODUCTION STRATEGY TO SECURE KEY IP AND LONG- TERM REVENUE STREAMS SCALE GLOBAL STUDIO71 CONTINUE TO SCALE AND GROW REVENUE MIX TO HIGHER MARGIN ACTIVITIES SUCH AS MEDIA SALES, BRANDED CONTENT, MERCHANDISING AND CONTENT CREATION TO ACHIEVE OVERALL MARGIN EXPANSION 72

73 AGENDA VISION AND GROWTH AMBITION GROWTH ENGINE: NUCOM GROUP FUTURE-FIT ENTERTAINMENT NEW DIRECTION: RED ARROW STUDIOS TARGETS AND FINANCIAL GUIDANCE DIE BESTE SHOW DER WELT ProSieben/Andreas Franke 73

74 RECAP: GROUP GROWTH AMBITIONS OUR STARTING POINT 1) AMBITION IN ~5+ YEARS INCL. BOLT-ON M&A REVENUES [EUR] 2) ADJ. EBITDA [EUR] EQUITY VALUE [EUR] 3) REVENUES [EUR] ADJ. EBITDA [EUR] EQUITY VALUE [EUR] 4BN 1BN 5BN 6BN 1.5BN NON-ADVERTISING REVENUE SHARE GROUP DIGITAL REVENUE SHARE GROUP 4) SMART ADVERTISING SHARE OF ENTERTAINMENT ADVERTISING REVENUES 5) NON-ADVERTISING REVENUE SHARE GROUP DIGITAL REVENUE SHARE GROUP 4) SMART ADVERTISING SHARE OF ENTERTAINMENT ADVERTISING REVENUES 5) 40% 30% 5% 50% 50% 25% ACTUAL TOTAL SHAREHOLDER RETURN 6) YE 2016 YTD % TOTAL SHAREHOLDER RETURN 10-15% P.A. ADJ. EPS GROWTH PLUS DIVIDEND YIELD 1) Figures relate to Q LTM, if not stated otherwise; 2) Revenue split in EUR Entertainment: 2.7bn, Red Arrow Studios: 0.5bn, NuCom Group: 0.8bn; 3) Equity Value based on current stock price October 2018; 4) Incl. digital businesses from Entertainment, Nucom Group (referring to the segment Commerce) and Red Arrow Studios (referring to the segment Content Production and Global Sales); 5) Smart advertising includes targetable products both linear and digital; 6) TSR calculated as share price performance plus dividends reinvested in security based on Bloomberg; Source: P7S1 company data; Bloomberg 74

75 CONFIRMED MID-TERM TARGETS ENTERTAINMENT MORE LOCAL CONTENT ON LINEAR AND DIGITAL CHANNELS TO MONETIZE TOTAL & SMART REACH +0-5% EXTERNAL REVENUE GROWTH CAGR (ORGANIC) RED ARROW STUDIOS INCREASE INTERNAL CONTENT FEED, BOOST INTER- NATIONAL AND SCALE S71 IN GERMANY AND BEYOND +5-10% EXTERNAL REVENUE GROWTH CAGR (ORGANIC) NUCOM GROUP ACCELERATE GROWTH OF FOUR VERTICALS ALONG WITH GENERAL ATLANTIC SERVING STRONG CONSUMER NEEDS % EXTERNAL REVENUE GROWTH CAGR (ORGANIC) INVESTMENTS IN 2019 IN ORDER TO DRIVE HIGHER REVENUE GROWTH THEREAFTER RETURN TO GROWTH PATH AFTER CHALLENGING H AMBITION TO REACH UPPER END OF REVENUE GROWTH TARGETS MID-SINGLE DIGIT % P7S1 GROUP REVENUE GROWTH CAGR MID-20s % P7S1 GROUP ADJUSTED EBITDA MARGIN Source: P7S1 company data 75

76 BUILDING BLOCKS OF GROUP S TARGET REVENUES EXTERNAL REVENUES [IN EUR] 1) MID SINGLE-DIGIT REVENUE CAGR (PLUS M&A) ~1.2BN ~0.5BN ENTERTAINMENT ~0.3BN RED ARROW STUDIOS ~0.1BN ~6BN AMBITION LEVEL BASED ON MID-TERM REVENUE GROWTH TARGETS AND FUTURE M&A ~4BN NUCOM GROUP ~0.1BN ADJUSTED EBITDA: ADJUSTED EBITDA: ~0.3BN ~1.5BN ~1BN Q LTM TARGETED GROUP REVENUES INCL. M&A 1) Chart dimensions are illustrative and do not represent exact amounts Source: P7S1 company data 76

77 GROWTH/ SAVINGS MONE- TIZATION (DIGITAL) REACH CONTENT 2019 INVESTMENTS FOR GROWTH AMOUNT FY EUR 80M INVESTMENTS MORE LOCAL CONTENT TO GROW REACH ACROSS ALL PLATFORMS INCREASED RELEVANCE AND DIFFERENTIATION FROM COMPETITORS -EUR 20M STRENGTHEN DIGITAL ENTERTAINMENT FOOTPRINT & GROW DISTRIBUTION MULTIPLY CONSUMER TOUCH POINTS WITH OUR CONTENT -EUR 20M ADVERTISING TECHNOLOGY, AI, DATA AND NETID AS WELL AS OTHER ENABLERS FOR IMPROVED REACH MONETIZATION +EUR 50M TOTAL SEGMENT REVENUE GROWTH (EXTERNAL AND INTERNAL) DRIVEN BY ALL KEY ASSETS COST SAVINGS FROM ADDITIONAL EFFICIENCY MEASURES -EUR 70M FY 2019 ENTERTAINMENT ADJ. EBITDA EXPECTED TO BE EUR 70M BELOW FY 2018 Source: P7S1 company data 77

78 PRELIMINARY FY 2019 OUTLOOK ENTERTAINMENT +0-5% MID-TERM EXTERNAL REVENUE GROWTH (CAGR) RED ARROW STUDIOS +5-10% MID-TERM EXTERNAL REVENUE GROWTH (CAGR) NUCOM GROUP % RETURN TO REVENUE GROWTH, ADJ. EBITDA TO DECLINE BY EUR 70M (-EUR 50M ON GROUP LEVEL) MID-SINGLE DIGIT % P7S1 GROUP REVENUE GROWTH (REPORTED) 22-25% P7S1 GROUP ADJUSTED EBITDA MARGIN MID-TERM EXTERNAL REVENUE GROWTH (CAGR) Source: P7S1 company data 78

79 WE AIM FOR AN ANNUAL TOTAL SHAREHOLDER RETURN OF % ORGANIC GROWTH EPS GROWTH THROUGH M&A TOTAL SHAREHOLDER RETURN SHARE BUYBACK DIVIDEND YIELD 50% PAY-OUT RATIO 1) AMBITION LEVEL % P.A. ADJUSTED EPS GROWTH PLUS DIVIDEND YIELD FINANCIAL LEVERAGE TARGET RANGE UNCHANGED: X 1) A payout-ratio of 50% of Adjusted Net Income will for the first time be applied for FY 2018 dividend (payment in FY 2019) Source: P7S1 company data 79

80 HOW WILL WE EXECUTE TO WIN? #1 CLEAR GAME PLAN AND KPIs #2 #3 #4 #5 STREAMLINED ORGANIZATION SIMPLIFIED OPERATIONS DISCIPLINED CASH USAGE PARTNER FOR SCALE GALILEO ProSieben #6 TECH ENGINE 80

81 TO SUM IT ALL UP AMBITION IN ~5+ YEARS: EUR 6 BN REVENUES EUR 1.5 BN ADJ. EBITDA % TSR P.A. 1) ENTERTAINMENT: A FUTURE-FIT GERMAN ENTERTAINMENT BUSINESS THAT IS MORE LOCAL, MORE DIGITAL AND MORE SMART REACH NUCOM GROUP: A RAPIDLY SCALED DIGITAL PLATFORM AND E-COMMERCE CHAMPION RED ARROW STUDIOS: A MORE SYNERGISTIC PRODUCTION FOOTPRINT HOMEWORK AND DELIVER FIRST 1) Adjusted EPS growth plus dividend yield p.a. Source: P7S1 company data 81

82

83 APPENDIX

84 OUR GROUP FINANCIALS FOR Q [in EUR m] [in EUR m] [in EUR m] +1% -13% -24% CONSOLIDATED REVENUES ADJUSTED EBITDA ADJUSTED NET INCOME +4% portfolio/ currency adjusted 20% adjusted EBITDA margin Q Q Q Q Q Q

85 SEGMENT FINANCIALS External revenue growth Group and segments Q1-Q GROUP ENTERTAINMENT CP & GS / RED ARROW STUDIOS COMMERCE / NUCOM GROUP 6% 6% 20% 20% 4% 2% 0% -2% -4% 4% 2% 0% -2% -4% 15% 10% 5% 0% -5% -10% 15% 10% 5% 0% -5% -10% -15% -6% Q1 Q2 Q3-6% Q1 Q2 Q3-15% Q1 Q2 Q3-20% Q1 Q2 Q3 Successful swingback and solid organic growth Better and more local programming leads to strong ratings, but at -1.5% not yet translating into revenues +14% due to Studio71 & global distribution +14% strong across key assets Reported Portfolio and currency adjusted 85

86 GROUP P&L [in EUR m] Q Q Δ 9M M 2017 Δ Revenues % 2,685 2,755-3% Adjusted EBITDA % % Reconciling items % n/a EBITDA % % Depreciation and amortization % % Thereof PPA % % Operating profit (EBIT) % % Financial result n/a n/a Thereof interest result % % Result before income taxes (EBT) % % Consolidated net profit 1) % % Adjusted net income % % Net financial debt , % , % 1) After non-controlling interests. 86

87 GROUP FINANCIALS External revenues and adjusted EBITDA [in EUR m] Q Q YoY 9M M 2017 YoY Ext. revenues % 2,685 2,755-3% Adj. EBITDA % % +4% portfolio/ currency adj. revenue growth in Q COMMENTS +4% and +1% portfolio and currency adjusted revenue growth in Q3 and 9M 2018 based on dynamic revenue growth of key assets in our Commerce segment Deconsolidation of etraveli, Comvel, maxdome and 7NXT as well as currency effects affected Q3 and 9M figures Adj. net income % % Q3 adjusted EBITDA affected by among others deviating program cost seasonality; 9M adjusted EBITDA declined by 4% Adjusted net income below prior year due to lower operating profit 87

88 ENTERTAINMENT: STABLE ADJUSTED EBITDA IN FIRST NINE MONTHS DESPITE CHALLENGING AD ENVIRONMENT External revenues and adjusted EBITDA [in EUR m] Q Q YoY 9M M 2017 YoY Ext. revenues % 1,799 1,824-1% Advertising % 1,513 1,548-2% Distribution % % Other % % Adj. EBITDA % % -2% portfolio/ currency adj. revenue development in Q COMMENTS TV advertising revenues stable both in Q3 and 9M 2018, Entertainment advertising revenue decline mainly reflecting lower SevenVentures and AdVoD revenues Digital ad sales business still affected by loss of Sport1 customer Decline in other revenues in Q3 due to deconsolidation of maxdome and 7NXT, positive underlying trend As indicated Q3 adjusted EBITDA affected by deviating program cost seasonality Stable 9M adjusted EBITDA due to strict cost management and IFRS16 effect 88

89 CONTENT PRODUCTION & GLOBAL SALES: NOTABLE IMPROVEMENT IN Q External revenues and adjusted EBITDA [in EUR m] Q Q YoY 9M M 2017 YoY Ext. revenues % % Production % % Global Sales % % Other % % Adj. EBITDA % % +14% portfolio/ currency adj. revenue growth in Q COMMENTS Content Production & Global Sales segment returned to double-digit revenue growth in Q3 after a soft first half-year and despite negative FX effects Development of production business in Q3 supported by new productions such as 5th season of Bosch (Amazon) Global Sales business again supported by first-time consolidation of Gravitas Dynamic growth of Studio71 U.S. business Stable adjusted EBITDA margin in first nine months 89

90 COMMERCE: ORGANIC SEGMENT REVENUE GROWTH ACCELERATED IN Q External revenues and adjusted EBITDA [in EUR m] Q Q YoY 9M M 2017 YoY Ext. revenues % % Digital services % % Physical products % % Other % >+100% Adj. EBITDA % % +14% portfolio/ currency adj. revenue growth in Q COMMENTS Strong organic revenue growth of +14% in Q3 driven by all key verticals Digital services revenues mainly reflecting etraveli disposal, physical products benefiting from growth of Flaconi and Windstar Adjusted EBITDA decline due to etraveli disposal, new media contract, growth investments and revenue mix Earnings very much skewed towards the end of the year, Q4 with highest earnings contribution 90

91 INCREASE IN NET DEBT MAINLY DRIVEN BY M&A CAPEX IN THE PAST 12 MONTHS Net financial debt [in EUR m] FINANCIAL LEVERAGE 1.8x -1, EUR 294m net M&A-related capex x -45-2,189 09/30/ dividend M&A capex NuCom transaction FCF before M&A not reflected in M&A capex Other 09/30/2018 Financial leverage: net debt/ltm adjusted EBITDA (LTM adjusted EBITDA of EUR 1,024m (previous year: EUR 1,052m)). Note: net debt as of 09/30/2018 after reclassification of cash and cash equivalents of held-for-sale business (Tropo, Gymondo, 7NXT, maxdome). IFRS net debt as per P7S1 definition (i.e. excluding EUR 142m lease liabilities and EUR 22m real estate liabilities). 91

92 UPDATED FINANCIAL OUTLOOK 2018 REFLECTING RECENT DECONSOLIDATIONS AND ORGANIC REVENUE DEVELOPMENT PREVIOUS FY 2018 OUTLOOK Q OUTLOOK NEW FY 2018 OUTLOOK GROUP REVENUES Reported low to mid singledigit increase (%) low single-digit decrease (%) low single-digit decrease (%) Portfolio and currency adjusted (%) mid single-digit increase (%) low to mid singledigit increase (%) low single-digit increase (%) ADJUSTED EBITDA MARGIN mid-20s % 28-32% mid-20s % ADJUSTED NET INCOME ~50% adj. EBITDA to adjusted net income conversion ~50% adj. EBITDA to adjusted net income conversion ~50% adj. EBITDA to adjusted net income conversion Note: updated as per November 7,

93 FINANCIAL POLICY FRAMEWORK ALIGNED WITH INVESTMENT REQUIREMENTS AND TO DRIVE EPS GROWTH FRAMEWORK UNTIL FY 2017 FRAMEWORK FOR FY 2018 AND BEYOND Dividend 80-90% of adjusted net income 50% of adjusted net income 1) New investments (organic, M&A) Share Buyback limited residual amount of FCF, limited EPS growth n/a meaningful share of FCF, investments to drive EPS growth share buybacks benchmarked against investment opportunities TSR Financial Leverage x net debt/adjusted EBITDA x net debt/adjusted EBITDA 1) A payout-ratio of 50% of Adjusted Net Income will for the first time be applied for FY 2018 dividend (payment in FY 2019) 93

94 DETAILS OF SHARE BUYBACK PROGRAM SHARE BUYBACK PROGRAM TO PARTLY OFFSET REDUCED DIVIDEND PAY-OUT RATIO FOR FY 2018 ProSiebenSat.1 intends to carry out a share buyback program based on the authorisation granted by the Annual General Meeting 2015 Maximum total purchase price of up to EUR 250m over months with the option to cease the buyback at any time Timing and volume of shares repurchased will depend on market conditions Initial tranche will be for value of up to EUR 50m / up to 4m shares Shares may be used for M&A or withdrawn; focus will be on generating highest return for shareholders and driving shareholder value Existing total share count: 233,000,000 (before treasury shares) Treasury shares amounted to 4,050,518 before start of share buyback 94

95 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 forwardlooking 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. 95