BRAND POWERHOUSE October 2017 WE DELIVER GROWTH Reve venu nues - PowerPoint PPT Presentation

AN OMNICHANNEL ENTERTAINMENT & COMMERCE BRAND POWERHOUSE October 2017

WE DELIVER GROWTH Reve venu nues es Adj. j. EBI BITDA DA [in EUR m] [in EUR m] TARGET TARGET ~50% +11% +10% 4,506 1,145 CASH 1,018 CONVERSION 3,799 506 506 1,918 2009 2016 2018 2009 2016 2018 2

PROSIEBENSAT.1 AT A GLANCE 2009 2016 CAGR GR (2009-2016) 6) Ext. t. reven enues ues 1 1,918m 3,799m +10% Adjus usted ted EBITDA ITDA 1 506m 1,018m +11% Adjus usted ted net income ome 187m 513m +16% Reve venu nue e shar are e of T TV adv. v. 89% 53% -36%pts Enter terpr prise ise value ue 4,842m 10,339m +11% Share e price 8.06 36.61 +24% EV/EB /EBITDA DA multi tipl ple 9.6x 10.2x +0.6x Leverage erage ratio 4.7x 1.9x -2.8x 1) Excluding International TV and Diversification (SBS Group, Radio, Print and Cmore) 3

DIVIDEND & EPS GROWTH 2013 2013 2014 2014 2015 2015 2016 2016 600 600 600 600 600 600 600 600 16 16 14 14 14 14 13 13 5 5 3 5 8 8 4 4 11 11 10 10 0 9 9 4 4 3 3 -3 -3 -5 -5 -2 Divide vidend nd yield eld (in n %) EPS growt wth h (in n %) 4

ON TRACK FOR CMD TARGETS 2018 Ext. t. segment t and Group revenues Degre ree of [in EUR m; FY 2012-Q2 2017 (LTM); 2018 target] achievement 1) 1) Target et 2018: 8: EUR 4,506 506m 76% (requi uire red pro- rata ta target: t: 75%) 470 3,983 3,799 78% 78% 389 362 3,261 1.172 2,876 76 77% 77% 262 923 768 2,605 2,356 202 465 Conten ent Produc uctio ion n & Global al Sales 124 563 64% 442 442 95 611 371 Digital ital Ventur ures & Commerce (since ince 2015) 484 335 75% Digital ital Entertainm tainment nt (since ince 2015) Broadc dcas asting ting German an-spe peak aking ing 2.301 2.210 2.207 2.152 2.063 1.998 1.926 Digital ital & Adjacent nt (until til 2014) Latest portfolio measures not yet reflected in 2018 CMD targets 2012 2013 2014 2015 2016 Q2 2 2017 2018 LTM 5

50% OF REVENUES OUTSIDE TV ADVERTISING Extern rnal l reven enues ues 3,983 [in EUR m] 50% CMD target get achieved ieved: 2,356 50% 50% Non-TV V adverti rtisi sing ng 23% CAGR: +33% of Group revenues generated outside of traditional TV adver ertis isin ing TV advertising business 50% 77% 77% CAGR: +2% 2012 Q2 2017 LTM 6

FROM CONTENT AGGREGATOR TO CONTENT, ENTERTAINMENT AND COMMERCE OMNICHANNEL PLATFORM 7Wellbeing ng Digit ital al Commerce erce Digit ital al Entertainme tainment nt Adja jacen cent t & Product Pr uction ion Broad adcast astin ing 7

LEADING MARKET POSITIONS Broadcasting Digital Content Digital Ventures German- Entertainment Production & Commerce speaking & Global Sales Top3 Top3 #1 #1 #2 #2 #1 #1 #1 #1 Top10 Top 10 MCN FreeTV Independent production group #2 #2 #2 #2 #1 #1 TV ad revenues s account t for ~50% 0% of total al group revenues #1 #1 AdVoD Premium Video Sales House Selected companies only. Note: Jochen Schweizer acquisition subject to clearance by the responsible cartel authorities, closing envisaged in Q4 2017. Ext. Revenue growth H1 2017 vs. H1 2016 in %. Pro forma view for Parship Elite Group. 1) Revenue growth for mydays. 8

WE ARE THE LEADING GERMAN TV GROUP -0.3% 0.3% +1.0% +1.0% pts pts 29.0 29.0 26.9 26.9 28.7 28.7 25.9 25.9 20 2010 10 H1 H1 20 2017 17 Basis: all German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h, continued channels only; RTL Mediengruppe since June 2016 incl. RTLplus, w/o RTL II minority. 9 Source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV Deutschland.

LAUNCHED 4 NEW TV CHANNELS WITHIN 6 YEARS 2016 2013 2013 2010 10 10

BUILT SIZEABLE PRODUCTION BUSINESS WITHIN 5 YEARS US US 1) 1) accoun unts ts for 73% 73% 19 19 pr productio oduction n compani companies es in in 7 7 cou countr ntrie ies of exter terna nal l revenu nues 1) Share of external revenues generated by US production entities, Q2 2017 LTM. 11 11

LEADING GLOBAL MULTI-CHANNEL NETWORK 7bn 7bn 1,200 1,200 Top3 Top3 Video o views ws Globa bal Globa bal MCN per Month th creators ators Source: Studio71. 12 12

CREATED LEADING DCOM BUSINESS WITHIN 4 YEARS #2 #1 #1 #2 #1 Double-digit Single-digit Double-digit Double-digit Double-digit revenue growth 1) revenue growth revenue growth revenue growth revenue growth Selected companies only. Note: Jochen Schweizer acquisition subject to clearance by the responsible cartel authorities, closing envisaged in Q4 2017. 13 13

BUILT AN OWN ADTECH STACK WITHIN 2 YEARS Demand Side Platform Supply Side Platform Ad server for programmatic media buying for programmatic media selling for digital advertising delivery Sales house/Publisher Advertiser/agency Data Management Platform for managing & segmenting user data 14 14

WE ESTABLISHED POWERFUL PARTNERSHIPS European Media Alliance US entertainment German data cooperations cooperations cooperation Join oint Progr ogrammati ammatic St Studi dio7 o71 Thema Th ematic onli online e vi vide deo o Log Log-in par partner er al allian liance Sale Sales s Ho House se (EBX) BX) co-invest co vestment ment TV windo TV w dows ws plat pl atform form First partner ner 15 15

ProSiebenSat.1 founded the Nordics MEDIA UK ALLIANCE NL GSA Poland >200m Eastern Europe Portugal France household reach Italy Spain Turkey Greece, SEE 16 16

OUR UR UN UNIQUE UE ADV ADVAN ANTA TAGE GE VS VS. FAN FANGA GA: CROSS CROSS-FERTIL FERTILIZATION IZATION Omni- TV Content Data Technology channel advertising distribution Local al market et know-how how De Deep p Ve Verti tical cal experie rienc nce Inter ter-ver ertical tical syne nergies gies Creati ation on of o offline e produc ucts ts FANGA: Facebook, Amazon, Netflix, Google, Apple 17 17

EFFICIENT CREATION OF OF A D A DIG IGIT ITAL AL BU BUSI SINES NESS S IN IN 5 YE 5 YEAR ARS 1.1bn 1.1bn 1.3bn 1.3bn 250m 250m ~10% ~10% M&A spen end rev even enues es adj. EBITDA FCF ROI OI 18 18

OUR UR ENTE ENTERTAIN RTAINMEN MENT T BUSINE BUSINESSES SSES Broadcasting Digital German-speaking Entertainment 19 19

High Hi gh Free Free TV TV con conten tent t qu qualit ality GERMAN MARKET Low ad br Low ad break eak Stron St rong g int intensity ensity lighthou lighth ouse se DIFFERENTIATORS (12 min/hou our) r) chann cha nnel els vs. US Lan Langua guage: ge: Free Free TV TV widely idely Du Dubb bbed ed pr prot otected ected from from versions ver sions windowing window ing pr prefe eferr rred ed 20 20

Mo Monthly nthly spen spend d Share of Shar e of time time Pay TV ay TV SVoD SVoD per Pay TV per ay TV shift shi fted usage ed usage pene penetr trat atio ion 1) 1) pene penetr trat atio ion 4) 4) subs subscriber criber 2) 2) ( vs. live TV) 3) 21% 21% USD 28 USD 28 2% 2% 26% 26% 77% 77% USD 96 USD 96 12% 12% 57% 57% ST STRON RONG G LI LINE NEAR AR FR FREE EE TV TV 1) GER: VPRT Pay TV in Germany (2017); USA: SNL Kagan (2017); UK: ofcom international CMR 2016 (2015); Nordics: Digital TV research as cited by Statista, w/o FIN 2) GER: VPRT Pay TV in Germany (2017); USA: SNL Kagan (2017); UK: ofcom international CMR 2016 (2015); Nordics: (SWE only) ofcom international CMR 2016 (2015) 3) GER: AGF TV Scope (Q1 2015); USA: Nielsen (Q1 21 21 2017); UK: Thinkbox annual review 2016 (2016); Nordics: FIN Finnpanel Oy, TAM 2014 (2014); NOR TNS Gallup TV-meterpanel (2014) 4) GER: ViewTime Report, Q2/2017, SevenOne Media, forsa; USA: Nielsen (Q1 2017) UK: BARB UK Television Landscape Report Q4 2016 (2016), SWE SNL Kagan Consumer Insights 2017

INTERNATIONAL INTERNATIONAL ADVERTISING M ADVERTISING MEDIA EDIA MIX MIX COMP MPAR ARIS ISON ON [2016, media mix of net advertising market, in %] 8% 9% 12% 11% 11% 80% 76% 76% 33% 58% 58% 40% 55% 35% Others Print 37% Digital 25% 23% TV 2016 2016 2016 Note: Overall media mix not 100% for UK due to roundings Source: Magna Global forecast (June 2017), Digital including Google and Facebook 22 22 Excluding POS budgets, GER TV = Broadcast TV

VALUE CREATION OPPORTUNITIES vs. the US New ad revenu nues es Other r new revenu nues es Synergies rgies & cost reduc uctio tions ns Particip rticipatio ation Grow owth th in dist stri ributio bution n revenues ues Intra-ad ad marke rket t conso solida dation tion in shif ift away ay from om prin int Individ ividualized ualized adve vertising rtising via European ropean broa oadca dcastin sting g Digital gital pay y offe fferi ring Addre dressa ssable ble TV consoli solida dation tion Particip rticipatio ation in public blic fundi nding Regio iona nal advertisi ertising Comme mmerce rce synergies rgies for r selec ected ted conten ent Advertisi ertising ng ban Red Button on Portal rtal / HbbT bbTV on publ blic channel nels 23 23