Q1 2015 IR Presentation May 07, 2015 Page 1 | May 07, 2015 - PowerPoint PPT Presentation

Q1 2015 IR Presentation May 07, 2015 Page 1 | May 07, 2015

Agenda 1 Q1 2015 – At a Glance 2 Q1 2015 – Financial Performance Review Q1 2015 – Operational Performance Broadcasting German-speaking 3.1 3 Digital & Adjacent 3.2 Content Production & Global Sales 3.3 4 Summary & Outlook Page 2 | May 07, 2015

Q1 2015 At a Glance Thomas Ebeling Chief Executive Officer Page 3 | May 07, 2015

1 2 3 4 Q1 2015 – At a Glance Key financials – Q1 2015 [Q1 2015 vs. Q1 2014, in EURm] +12.7% ✔ Revenues 654.6 +9.0% ✔ Recurring EBITDA 152.7 +25.4% ✔ Underlying net income 69.9 Page 4 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – At a Glance Continued dynamic growth across all three business segments Broadcasting Digital & Adjacent Content Production German-speaking & Global Sales Digital Entertainment +21.3% TV Advertising +4.2% Digital Commerce +44.3% Distribution +26.4% Adjacent +12.0% +EUR 22m +EUR 32m +EUR 20m Revenue (Q1 2015: EUR 471m) (Q1 2015: EUR 138m) (Q1 2015: EUR 46m) growth vs. +4.8% +30.4% +75.6% Q1 2014 Page 5 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – At a Glance Major operational highlights in Q1 2015 ✔ Best Q1 TV ratings performance in the last nine years ✔ ProSiebenSat.1 with positive ad performance in Q1 ✔ New Digital & Adjacent vertical established: Beauty & Accessories ✔ Growing rate of returning shows, totaling 40% of production portfolio in Q1 1 Page 6 | May 07, 2015 1. Relates to Red Arrow Entertainment Group produced shows with revenues booked in Q1 2015.

1 2 3 4 Q1 2015 – At a Glance Well on track to hit our 2018 Group revenue growth target Degree of 59% 53% 51% 126% achievement [Achievement 1,000 by Q1 2015, 1.000 in EURm] 800 600 600 593 37.5% 400 300 linear projection of CMD target 308 126 200 158 100 0 Broadcasting German-speaking Digital & Adjacent Content Production & Global Sales Group CMD 2018 target Achievement by Q1 2015 Page 7 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – At a Glance We confirm our 2015 segment revenue growth assumptions… Broadcasting Content Production 1 2 3 Digital & Adjacent German-speaking & Global Sales Revenues double-digit low single- high single- vs. growth digit growth digit growth FY 2014 Page 8 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – At a Glance … and maintain our positive 2015 full-year guidance ✔ Mid to high-single digit Group revenue growth ✔ Ad performance at least in line with positive net TV ad market ✔ Digital & Adjacent with double-digit revenue growth ✔ Recurring EBITDA and underlying net income above prior year Page 9 | May 07, 2015 Continuing operations.

Q1 2015 Financial Performance Review Dr. Gunnar Wiedenfels Chief Financial Officer Page 10 | May 07, 2015

1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: double-digit revenue growth translates into EUR 13m recurring EBITDA improvement Consolidated revenues Recurring EBITDA [in EURm] [in EURm] +9.0% +12.7% 654.6 152.7 140.1 581.1 150 600 100 400 50 200 0 0 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Recurring EBITDA margin: 23.3% (-0.8%pts) Page 11 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: key revenue growth drivers of ProSiebenSat.1 Key Group revenue growth drivers [Q1 2015 external revenues, growth rates in percent] Content Production & Global Sales Broadcasting German-speaking Digital & Adjacent EUR 470.8m, +4.8% EUR 138.2m, +30.4% EUR 45.6m, +75.6% Digital Entertainment EUR 52.0m, +21.3% TV advertising EUR 436.6m, +4.2% Digital Commerce Red Arrow EUR 69.5m, +44.3% EUR 45.6m, +75.6% Distribution Adjacent EUR 25.6m, +26.4% EUR 16.6m, +12.0% Page 12 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: significant improvement of financial result and underlying net income Financial result Underlying net income [in EURm] [in EURm] -25.9% +25.4% 20 80 69.9 55.7 0 60 -20 40 -28.4 -40 20 -38.3 -60 0 Q1 2014 Q1 2014 Q1 2015 Q1 2015 Page 13 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – Financial Performance Review Broadcasting German-speaking: solid revenue growth of TV advertising and distribution business External revenues and recurring EBITDA [in EURm] Q1 2015 Q1 2014 y-o-y Comments TV advertising revenue growth driven by positive advertising environment and Ext. revenues 470.8 449.2 +4.8% positive Easter effect. TV advertising 436.6 418.9 +4.2% Distribution revenues increased due to continued strong demand for HD channels. Distribution 25.6 20.3 +26.4% Rec. EBITDA increase in line with revenue Rec. EBITDA 125.8 119.8 +5.0% growth. Page 14 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – Financial Performance Review Digital & Adjacent: dynamic revenue and recurring EBITDA growth driven by all key assets External revenues and recurring EBITDA [in EURm] Q1 2015 Q1 2014 y-o-y Comments Dynamic organic revenue growth in Digital Ext. revenues 138.2 105.9 +30.4% Entertainment and Digital Commerce, and consolidation effect of Aeria Games and Digital Entertainment 52.0 42.9 +21.3% moebel.de. Digital Commerce 69.5 48.2 +44.3% Adjacent 16.6 14.8 +12.0% Rec. EBITDA improvement despite Rec. EBITDA 26.8 23.8 +12.5% continued investments. Page 15 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – Financial Performance Review Content Production & Global Sales: revenue growth driven by US production business External revenues and recurring EBITDA [in EURm] Q1 2015 Q1 2014 y-o-y Comments Strong organic revenue growth driven by returning shows (esp. “Married at first Ext. revenues 45.6 26.0 +75.6% sight”, “Little Women”) ; positive consolidation effects from the acquisition of Half Yard. Global Sales revenues from “BOSCH” and “ 100 Code” also contributed Total revenues 55.6 36.5 +52.3% positively. Continued improvement of segment Rec. EBITDA 0.7 -2.5 +127% profitability. Page 16 | May 07, 2015 Continuing operations.

1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: Group P&L – improvement of almost all key metrics Δ [in EURm] Q1 2015 Q1 2014 Revenues 654.6 581.1 +12.7% Recurring EBITDA 152.7 140.1 +9.0% Non-recurring items -6.8 -4.3 +59.6% EBITDA 145.9 135.9 +7.4% Depreciation and amortization -28.7 -26.0 +10.4% Operating result (EBIT) 117.2 109.9 +6.6% Financial result -28.4 -38.3 -25.9% Thereof interest result -21.5 -30.8 -30.4% Earnings before tax (EBT) 88.8 71.6 +24.1% Net income 1 61.1 49.0 +24.6% Underlying net income 69.9 55.7 +25.4% Page 17 | May 07, 2015 Continuing operations. 1. After non-controlling interests.

1 2 3 4 Q1 2015 – Financial Performance Review Q1 2015: our financial leverage improved to 1.7x Net debt [in EURm] Net financial debt Financial leverage 92 at 1.7x 1.500 as of March 31, 2015 1.000 1,592 1 1,500 500 0 03/31/2014 03/31/2015 Change in net debt Page 18 | May 07, 2015 Financial leverage: Net debt/LTM recurring EBITDA (LTM recurring EBITDA of EUR 859.9m (previous year: EUR 802.5m) for continuing operations). 1. After reclassification of cash and cash equivalents of Eastern European operations.

1 2 3 4 Q1 2015 – Financial Performance Review Financial targets for 2015 Group revenue growth mid to high-single digit Recurring EBITDA above prior year Underlying net income above prior year 1.5x – 2.5x Financial leverage Page 19 | May 07, 2015 Continuing operations.

Broadcasting German-speaking TV Performance Thomas Ebeling Chief Executive Officer Page 20 | May 07, 2015

1 2 3 4 Broadcasting German-speaking / TV Performance Strong viewer share growth across German-speaking markets Q1 2014 Q1 2015 28.4% 28.9% Germany 20.2% 21.5% Austria 16.3% 18.3% Switzerland Page 21 | May 07, 2015 Basis for GER: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, full day 3-3h. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland. Basis for CH: D-CH, A 15-49; Mon-Sun, full day. Source: Mediapulse TV-Panel. Basis for A: A12-49; Mon-Sun, full day 3-3h, P7 MAXX Austria and S1 Gold Austria (both from Jul 15, 2014, onwards). Source: AGTT / GfK: Fernsehforschung / Evogenius Reporting.

1 2 3 4 Broadcasting German-speaking / TV Performance Strong viewer share growth across German-speaking markets Audience shares (A14-49) [Full day; in percent] 30 28.9 29 28.5 28.4 28.4 27.8 27.7 27.7 28 27.5 27 26.6 26 25 24 23 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Page 22 | May 07, 2015 Basis: All German TV households (Germany + EU), A 14-49 years; Mon-Sun, full day 3-3h; P7S1 w/o N24 & w/o 9live, sixx from Feb 1, 2011 onward, SAT.1 Gold from Jan 17, 2013 onward, ProSieben MAXX from Sep 3, 2013 onward. Source: AGF in cooperation with GfK / TV Scope / ProSiebenSat.1 TV Deutschland.