Q1 2017 Press Presentation May 11, 2017 Q1 2017 At a Glance - PowerPoint PPT Presentation

May 11, 2017 Q1 2017 Press Presentation

May 11, 2017 Q1 2017 – At a Glance Thomas Ebeling Chief Executive Officer

1 2 3 4 At a Glance Our recent major operational highlights Partnership with Discovery for aggregated OTT platform 1) Acquisition of ATV in Austria and integration into ProSiebenSat.1 PULS 4 2) Continued dynamic growth of Digital Ventures & Commerce – driven by all Commerce verticals | May 11, 2017 | 1) Note: The agreement is subject to approval by the responsible cartel authorities. 2) Signing on February 6, 2017 and closing on April 6, 2017. 3

1 2 3 4 At a Glance Key financials in Q1 2017 [Q1 2017 vs. Q1 2016; in EUR m] +13% Revenues 910 +10% Adjusted EBITDA 188 +10% Adjusted net income 88 | May 11, 2017 | Continuing operations. 4

1 2 3 4 At a Glance Q1 2017: all segments contribute to Group revenue growth Ext. segment revenues [in EUR m; growth rates in %] Broadcasting German- Content Production & Global Digital Entertainment Digital Ventures & Commerce speaking Sales +2% +2% +53% +24% 502 229 +14% 493 organic growth of digital businesses 97 78 95 150 63 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 | May 11, 2017 | 5

1 2 3 4 At a Glance Well on track to achieve our 2018 target Ext. segment and Group revenues Degree of [in EUR m; FY 2012-Q1 2017 (LTM); 2018 target] achievement 1) Target 2018: EUR 4,506m 72% 470 3,907 3,799 75% 377 362 3,261 1,172 70% 2,876 262 848 768 2,605 2,356 202 465 65% 124 563 442 444 95 611 371 484 335 Content Production & Global Sales 78% Digital Ventures & Commerce 2,301 2,210 2,219 2,152 Digital Entertainment 2,063 1,998 1,926 Broadcasting German-speaking Digital & Adjacent 2012 2013 2014 2015 2016 Q1 2017 2018 (LTM) | May 11, 2017 | 1) As of Q1 2017 (LTM). 6

May 11, 2017 Q1 2017 – Financial Performance Ralf Gierig Deputy Chief Financial Officer

1 2 3 4 Financial Performance Q1 2017: double-digit revenue and adjusted EBITDA increase Consolidated revenues Adjusted EBITDA [in EUR m] [in EUR m] +13% +10% 188 910 1,000 200 170 802 750 150 500 100 250 50 0 0 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2017: Adjusted EBITDA margin of 21% | May 11, 2017 | Continuing operations. 8

1 2 3 4 Financial Performance Q1 2017: continued strong adjusted net income growth Financial result Adjusted net income [in EUR m] [in EUR m] -53% +10% 25 100 88 80 75 0 50 -11 -25 -24 25 0 -50 Q1 2016 Q1 2017 Q1 2016 Q1 2017 | May 11, 2017 | 9

1 2 3 4 Financial Performance Financial leverage of 1.8x well within financial leverage target range Net financial debt Net debt [in EUR m] 2.1x 1.8x 2,500 -65 2,000 1,500 1,000 1,953 1,889 500 0 31/03/2016 Change 31/03/2017 Financial leverage 1) | May 11, 2017 | 1) Net financial debt to LTM adjusted EBITDA. 10

1 2 3 4 Financial Performance 2016 dividend proposal 2016 dividend proposal 2013-16 underlying EPS and DPS in Euro Dividend 2.37 2) 2.50 • Dividend per share: EUR 1.90 yield 2.18 1.96 3) 5.2% 1.90 2.00 1.80 1.78 • Total dividend pay-out 1) : EUR 435m 1.60 1.47 1.50 • Pay-out ratio: 84.7% 1.00 • AGM on May 12, 2017 0.50 0.00 • Dividend payment on May 17, 2017 2013 2014 2015 2016 Underlying EPS DPS per dividend entitled common share 1) Dividend pay-out calculated on the basis of 228.8m shares (4.2m treasury shares not entitled to a dividend); proposed 2016 dividend subject to AGM | May 11, 2017 | resolution. 2) Based on time-weighted average number of shares of 216.8m in 2016 (IAS 33), 2016 EPS based on dividend-entitled number of shares 11 post capital increase of EUR 2.24. 3) Based on share price of EUR 36.61 on December 30, 2016.

1 2 3 4 Financial Performance We confirm our 2017 financial outlook at least high single-digit Group revenue growth increase (%) above prior year Adjusted EBITDA above prior year Adjusted net income 1.5x – 2.5x Financial leverage 80 – 90% 1) Dividend pay-out ratio | May 11, 2017 | 1) Based on adjusted net income. 12

May 11, 2017 Q1 2017 – Operational Performance Thomas Ebeling Chief Executive Officer

3 1 2 4 Broadcasting German-speaking & Red Arrow Broadcasting German-speaking: our recent key highlights Maintained the leading position in the German TV market Achieved top ratings with our premium formats (e.g., 18.3% 1) with GNTM) Partnered with Scripps Networks to launch thematic branded windows Entered cooperation with Discovery for an aggregated OTT platform 2) Acquired Austrian TV station ATV to strengthen market position 3) in Austria 1) Basis: all German TV households (German-speaking), A 14-49, Mon-Sun, 3-3h; source: AGF in cooperation with GfK/TV Scope/ProSiebenSat.1 TV | May 11, 2017 | Deutschland. 2) Note: The agreement is subject to approval by the responsible cartel authorities. 14 3) Signing on February 6, 2017 and closing on April 6, 2017.

3 1 2 4 Broadcasting German-speaking & Red Arrow We are the leader in the German TV market Audience share (A 14-49) 1) Share of advertising 2) [Q1 2017, in %] [Q1 2017, in %] Others 24.3% 26.8% 41.4% Others 46.6% 26.6% 34.3% 1) Basis: all German TV households (German-speaking), A 14-49, Mon-Sun, 3-3 h, RTL Mediengruppe w/o RTL II minority; source: AGF in cooperation | May 11, 2017 | with GfK/TV Scope/ProSiebenSat.1 TV Deutschland . 2) Gross values; source: Nielsen Media Research/SevenOne Media, Sales Steering & Market 15 Insights.

3 1 2 4 Broadcasting German-speaking & Red Arrow We launched 2 out of 4 thematic windows with Scripps Networks Since Since Planned Planned February March in May in May Channel Multi-year license agreement: branded windows to be launched on 3 TV channels in H1 2017 Rationale Exclusive volume of >1,200 hours of factual entertainment programming to premiere on German television Cooperation includes extensive online rights | May 11, 2017 | 16

3 1 2 4 Broadcasting German-speaking & Red Arrow We plan to establish an aggregated OTT platform with Discovery Aggregated OTT platform for the German market Objective to build an aggregated OTT platform including premium content from P7S1 and Discovery & New joint technology development based on 7TV planned to ensure the most comprehensive and attractive viewing experience + Opportunity to create bundled offerings across additional premium assets like maxdome or live sports 9 Q3 50/50 TV channels planned launch First step in order to create a broader JV with after for combined Discovery OTT platform with other media companies relaunch platform | May 11, 2017 | Note: The agreement is subject to approval by the responsible cartel authorities. 17

3 1 2 4 Broadcasting German-speaking & Red Arrow We extend our leadership in the Austrian TV market with ATV Audience share (A 12-49) 1) Share of advertising 2) [Q1 2017; in %] [Q1 2017; in %] 25.7% 42.1% Others 5.8% 22.0% Others 20.7% 3) 33.7% 36.1% 3.7% 6.0% 26.7% 13.9% 3) 31.4% 1) Basis: all Austrian TV households (German-speaking), A 12-49, Mon-Sun, 3-3 h; source: AGTT/GfK TELETEST: Evogenius Reporting/ | May 11, 2017 | ProSiebenSat.1 PULS 4 GmbH. 2) Gross values; source: Media Focus, TV split. 3) Incl. RTL, RTL2, Super RTL, VOX, RTL NITRO, excluding SKY 18 Sport and R9.

3 1 2 4 Broadcasting German-speaking & Red Arrow TV stable despite high PayVoD penetration in 14-49 target group Broadest user universe (A 14-49) 1) Video consumption (A 14-49) 2) [in %; usage at least rarely or more often] [in minutes; viewing time rolling last 4 quarters] TV consumption stable despite increasing broadest user universe 96 of other video services 185 185 186 185 93 184 93 91 90 90 181 87 76 TV 74 75 80 81 80 DVD/Blu-ray 74 73 73 72 71 Free online video 40 PayVoD 33 31 29 29 40% PayVoD penetration 23 only translate to ~4% share of video consumption 21 (9 minutes/day of total 217 9 minutes/day) 6 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 1) Basis: A 14-49; source: Viewtime Report SevenOne Media/forsa (2017). 2) Basis: A 14-49; source: Viewtime Report SevenOne Media/forsa (2015- | May 11, 2017 | 19 2017).

3 1 2 4 Broadcasting German-speaking & Red Arrow Red Arrow successfully improved its KPIs Number of Number of Number of hours Number of Returning Shows in the international productions 1) produced 2) returning shows 3) shows’ rate 4) catalogue 5) sales clients 5) 340+ 1,300+ 130+ 66% 930+ 340+ vs. vs. vs. vs. vs. vs. 290+ in Q1 2016 930+ in Q1 2016 110+ in Q1 2016 60% in Q1 2016 860+ in Q1 2016 230+ in Q1 2016 1) Incl. pilots, new and returning productions, multiple seasons counted as separate productions. 2) Incl. 7Stories. 3) Returning shows with revenues | May 11, 2017 | 20 booked in 2017. 4) % returning shows as of revenues. 5) Cumulative 2010 to Q1 2017.